CC 05-02-2023 Item No. 5. Attachment E. Staff Report Consolidation Plan 2020
CITY COUNCIL STAFF REPORT
Meeting: June 2, 2020
Subject
2020-25 CDBG Consolidated Plan and the FY 2020-21 CDBG Annual Action Plan
Recommended Action
Conduct Public Hearing; and
1. Adopt Draft Resolution approving the 2020-25 CDBG Consolidated Plan and
the FY 2020-21 CDBG Annual Action Plan
Discussion
CDBG Funding
The United States Department of Housing and Urban Development (HUD)
annually allocates grants such as CDBG, Home Investment Partnerships Program
(HOME), Housing Opportunities for People with AIDS (HOPWA), and
Emergency Shelter Grants (ESG) to local jurisdictions for community develop ment
activities. Cupertino is one of seven entitlement jurisdictions within Santa Clara
County. Entitlement jurisdictions typically must have a population of 50,000 or
more to qualify as an “entitlement jurisdiction” that receives grant funding
directly from HUD. Entitlement grants are allocated on a formula basis, to
develop viable urban communities by providing decent housing and a suitable
living environment, and by expanding economic opportunities, principally for
low-and moderate-income persons. Funds are then allocated to jurisdictions
based on several objective measures of community needs, including the extent of
poverty, populations, housing overcrowding, age of housing, and extent of
population growth lag in relationship to other metropolitan ar eas. This is
Cupertino’s nineteenth year as an entitlement jurisdiction receiving a CDBG grant
directly from HUD. On February 25, 2020, HUD released FY 2020-21 CDBG
amounts and the City was notified that it will receive $389,308 in funds.
HUD regulations require that eligible activities selected for funding meet one of
the three national objectives: to benefit low- and moderate- income households;
2
to aid in the prevention or elimination of a blighted area; or to address an urgent
community need , such as when conditions pose a serious and immediate threat
to the health or welfare of the community and where other financial resources are
not available to meet such needs. In addition, only certain types of eligible
activities qualify under the CDBG regulations. Examples of eligible activities are:
Public facilities and improvements
Public service activities
Affordable housing developments
Property acquisition for affordable housing
Rehabilitation of affordable units
Fair housing services
Economic development activities
Planning and administration of the CDBG program
Housing Commission Recommendation
The Housing Commission held a public hearing on May 14, 2020 to review and
approve the 2020-25 CDBG Consolidated Plan and the FY 2020-21 CDBG Annual
Action Plan. The Commission recommended the following changes, which are
reflected in the updated Plan:
Review the goals and expand upon the language
o Goal 3: Update goal description for “Frail elderly/elderly services”
to include a variety of services
o Goal 4: Change name from “Self-sufficiency services” to “Services
for low-income families and homeless population”
2020-2025 Consolidated Plan
The Consolidated Plan is comprised of six sections which include Executive
Summary, the Process, Needs Assessment, Market Analysis, Strategic Plan, and
Annual Action Plan.
Executive Summary Section
This section is an introduction to the Consolidated Plan including an evaluation of
the previous five-year Consolidated Plan period. The Consolidated Plan serves
three functions; as a planning document for the City of Cupertino, which builds
on a participatory process, as an application for federal funds under HUD’s CDBG
formula grant program, and as a strategy for carrying out the CDBG program.
3
During the previous 2015-2020 five-year Consolidated Plan period, the City was
successful in meeting its four goals, and added a fifth goal of supporting special
needs populations.
Goal 1: Assist in creation and preservation of affordable housing for low-income
and special needs households – 51 low-income rental units were rehabilitated, 62
homeowner households were rehabilitated, and a 19-unit affordable housing
property for seniors was built with City Below Market Rate (BMR) Affordable
Housing Funds, HOME funds, and Santa Clara County Measure A funding.
Goal 2: Support activities to prevent and end homelessness – supportive services
were provided through West Valley Community Services’ (WVCS) Community
Access to Resources and Education (CARE) program to homeless ho useholds
transitioning to permanent housing.
Goal 3: Support activities that strengthen neighborhoods through the provision of
community services and public improvements to benefit low-income and special
needs households – the CARE program provided supportive services, links to
mainstream resources, and emergency rental assistance the households at risk of
homelessness, and the Live Oak Adult Day Care Services program provided
recreation, mental stimulation, companionship, and meals to elderly and frail
elderly persons who are at risk of institutionalization.
Goal 4: Fair housing choice – fair housing counseling, case investigation, services
and outreach, educational activities to increase community awareness of fair
housing, and landlord/tenant counseling was provided.
Goal 5: Supporting special needs populations – funds were used by Maitri to
preserve housing for survivors of domestic violence and their children.
Public comments received during various community engagement efforts
identified the need to acquire, repurpose, and rehabilitate local housing to provide
sustainable affordable housing in the City; increase economic opportunities such
as transportation and accessibility, workforce development; subsidized auto
repair and medical services, increase family income, and other and vital services
for homeless prevention that could ultimately prevent an episode of homelessness;
create/sustain public service activities for special needs populations, particularly
elderly persons and persons with mental health needs; provide more restrooms
for the unsheltered homeless, assistance for families and individuals in transition;
improve aging community facilities and public infrastructure; and provide fair
housing services.
4
Process Section
This section outlines the process used to solicit the community input for the
Consolidated Plan. Community engagement is a key piece of the Consolidated
Plan and the City participated in a countywide effort to collect data and
information from residents and stakeholders across the county as well as within
the City to identify both local and regional trends. The jurisdictions that
participated in this effort include the cities of Cupertino, Gilroy, Mountain View,
Palo Alto, Sunnyvale, San Jose, Santa Clara and the County of Santa Clara
representing unincorporated areas of Campbell, Los Altos, Los Altos Hills, Los
Gatos, Monte Sereno, Morgan Hill and Saratoga.
The collaborative effort of Santa Clara County entitlement jurisdictions included
an extensive public outreach process. Twenty-two stakeholder interviews were
conducted with entities, organizations, agencies, and persons who are directly
engaged via community outreach efforts. The stakeholders were also asked to
share materials with their beneficiaries, partners, and contacts, and encouraged to
promote attendance at the public forums and to solicit responses to the Regional
Needs Survey. Community engagement included phone calls, targeted emails,
newspaper announcements, social media posts, and personalized requests from
jurisdiction staff. Throughout September and December of 2019, the entitlement
jurisdictions hosted four Consolidated Plan regional workshops in the cities of
Cupertino, Morgan Hill, Palo Alto, and San Jose to engage the public and local
stakeholders in the planning process. In addition, two community meetings that
sought combined input on the Consolidated Plan and Assessment of Fair Housing
were held in San Jose and in Gilroy. Two focus groups were held in Santa Clara
and Gilroy, where a total of seven agencies participated. Four pop-up events were
held, two in Sunnyvale, one in Santa Clara, and one in Palo Alto. These events
were held during farmer’s markets and had provided the public with general
information and awareness of the Consolidated Plan process and how to
participate in the community survey. Translators were provided at each
workshop for common languages spoken in the area. Outreach materials
announcing the regional and community outreach workshops along with
Consolidated Plan surveys were distributed countywide and published in four
languages (English, Spanish, Vietnamese, and Chinese). The City also offered the
Consolidated Plan survey on the City’s housing website, as well as paper copies
available at City Hall, Cupertino Library, Cupertino Senior Center, and Quinlan
Center. A total of 16 residents participated and a total of 1,950 Consolidated Plan
surveys were collected countywide. At the workshops, staff and the consultant
outlined the Consolidated Plan process and the purpose of the document.
Participants disbursed into smaller break-out groups to discuss needs associated
5
with community services, housing, economic development and community
facilities and infrastructure. After the break-out session, participants reconvened
to discuss these issues as a single group.
Needs Assessment Section
This section incorporates quantitative data from a variety of sources and
qualitative information from various organizations and community stakeholders.
Quantitative data sources include HUD, United States Census Bureau, HIV
Epidemiology Annual Report for the County of Santa Clara, the Center for Disease
Control and Prevention, Santa Clara County Homeless Census and Survey, and
other scholarly private demographic vendors.
Information in this section analyzes the impact that housing problems have on
low- and moderate-income households, racial and ethnic groups, and special
needs populations. Housing problems include substandard conditions,
overcrowding, and housing cost burden. When the members of a particular
racial/ethnic group experience housing problems at a greater rate (10 percentage
points or more) than the jurisdiction as a whole, then they have a disproportionate
need. Hispanic, Asian, and Pacific Islander households are disproportionately
affected by housing problems in the City.
Additionally, this section addresses the public service needs of the homeless
population, special needs populations, and public housing participants in the City.
The City has no public housing units; however, 28 Cupertino households have a
Housing Choice Voucher (HCV) that they can use at approved sites. Across the
County, HCV holders have difficulty locating a housing unit that will accept a
HCV, that is at the fair market rent, and meets the housing quality standards
required by HUD. The number of homeless people living in the City increased
between 2017 and 2019 by approximately 25 percent, from 127 to 159 unsheltered
homeless persons.
Lastly, data and community engagement feedback were used to determine
priority needs related to public facilities and public improvements in the City.
Housing Market Analysis Section
This section discusses the housing stock in the City and the multiple factors that
that impact housing. The majority of the City’s housing stock is of single-family
housing units (1-unit detached structures), in which the owner currently inhabits
the home. The median home value in 2015 was $1,140,200, and continues to rise,
which makes buying a home unaffordable to low-income households. In addition
6
to the lack of affordability for low- and moderate-income families to purchase a
home, there is a gap of 795 affordable units for renter households.
This section also analyzes the need for homeowner rehabilitation and lead-based
paint remediation. Low-income homeowners need assistance in rehabilitating
their homes to address health and safety issues, that may otherwise cause the
home to become uninhabitable. Additionally, there are approximately 2,115
households with children that could be living in housing with lead -based paint
hazards.
Internet access is extremely important to access education and job search activities.
To assist with this need, the City’s Senior Center offers public Wi-Fi, drop-in and
appointment-based technology. There are two providers in the City, both Xfinity
and AT&T that offer discounts to low- and moderate-income households, and
Xfinity also offers low-cost computers as part of an Internet Essentials program.
The City does not offer any emergency shelters or transitional housing for
homeless persons; however, homeless persons in the City are eligible for
countywide mainstream services. The City has 943 residential care facility beds
for the elderly, which are non-medical facilities. All other special needs housing is
not located within the City.
The City continues to prepare residents for natural and human-caused disasters
through social media, radio, TV, and Cupertino.org. Low- and moderate-income
households face many challenges, as discussed above in the Needs Assessment
and Market Analysis, yet these challenges are intensified when faced with a
natural disaster or other types of emergency.
Strategic Plan
This section serves as a blueprint for addressing the needs identified in the Needs
Assessment and Market Analysis sections. The Strategic Plan establishes a work
plan with goals and strategies to guide the allocation of entitlement grant funds
and the implementation of HUD programs over the next five years. The goals and
strategies listed in the five-year strategic plan compliment the policies, programs,
and objectives described in the City’s General Plan Housing Element. The goals
and strategies also reflect input from community stakeholders, local service
providers, and staff. The goals and strategies within the Strategic Plan are
organized into multiple categories to help the City determine the priority needs,
funding available, goals sought, potential barriers, increasing economic
opportunities, and abiding by all HUD requirements. Not every need identified
in the Plan can be met and sufficiently addressed in the next five years. Some of
the needs are not feasible, some require much more funding than the City
7
currently receives, and some are simply too large to be addressed in just five years.
Per HUD requirements, the Strategic Plan addresses how the City works with the
local public housing authorities, and is mitigating barriers to address affordable
housing, addressing poverty and coordinating with the public and private sector
on community development efforts.
Priority needs are determined through community engagement, data provided in
the housing needs assessment, and market analysis. Priority needs for the 2020-
25 Consolidated Plan period include affordable housing through both homeowner
and rental unit rehabilitation, preventing and assisting those experiencing
homelessness, providing community services for frail elderly/elderly persons, and
promoting fair housing choice.
The City anticipates the following funding over the five-year 2020-2025
Consolidated Plan cycle:
CDBG Entitlement funds $1,946,540 anticipated ($389,308 annually) plus
program income of $39,720 ($7,944 annually)
BMR AHF Public Services- $250,000 ($50,000 annually)
General Fund Human Services Grant- $625,000 ($125,000 annually)
The City participates in the Santa Clara HOME Consortium and does not receive
HOME funds directly but does provide a match for affordable housing developers
that wish to apply for HOME funds. The match is provided through the City’s
BMR AFH. The City’s BMR AHF has a current balance of $6,000,000.
Goals are determined based on priority needs and anticipated resources. Five
goals were created for the 2020-25 Consolidated Plan cycle: 1) homeowner
rehabilitation; 2) affordable rental unit rehabilitation; 3) frail elderly/elderly
services; 4) services for low-income families and homeless population; and 5) fair
housing.
Although the City has identified the need for additional affordable housing as a
priority need through public engagement, the City faces many of the same
affordable housing barriers as the rest of the Bay Area. The high cost of labor and
development constrains the development of affordable housing units in favor of
higher-end units, lack of developable land prevents development and increases
the price of land, and there is a lack of funding available for the development of
affordable housing.
Annual Action Plan Section
This section is a one-year plan that describes the eligible activities that the City
intends to undertake in FY 2020-21 to address the needs and implement the
8
strategies identified in the adopted 2020-25 Consolidated Plan. The Annual
Action Plan describes the activities that the City will fund to address the priority
needs of affordable housing, non-housing community services, homelessness, and
fair housing choice. The City has five projects planned during FY2020-21 to
address priority community needs, which will be funded through CDBG. The fair
housing project will be funded by the City’s BMR AFH funds. All projects are to
benefit low- and moderate-income households throughout the City and there is no
geographic area targeted for the projects. Due to the impacts of COVID-19, the
City may be unable to conduct activities, either all or in part, related to the
Homeowner Rehabilitation and Frail Elderly Services goals. The City estimates
that this inability will create a carryover budget of approximately $20,000 to the
FY21-22 Consolidated Plan year.
On May 5, 2020, the City Council approved the FY 2020-21 CDBG funding
allocations. Public Service funds are awarded on a three-year grant funding cycle.
Capital Housing funds are on a one-year funding cycle. The following tables
provide a breakdown of FY 2020-21 CDBG funding.
FY 2020-21 CDBG Budget
Entitlement Amount $389,308.00
Program Income FY 2019-20 $7,944.00
Sub-Total $397,252.00
Program Administration (20%) $79,450.40
Public Service (15%) $59,587.80
Capital/Housing Projects (65%) $258,213.80
Total $397,252.00
CDBG Capital Housing Projects
1
Rebuilding Together Silicon
Valley- Housing Repair and
Rehabilitation Project
$83,363.40
2
West Valley Community
Services (WVCS) - Vista Village
Renovation Project*
$174,850.40
Total $258,213.80
9
CDBG Public Services
1
Live Oak Adult Day Services-
Senior Adult Day Care /
Caregiver Respite
$21,155.73
2 WVCS- Community Access to
Resource and Education $38,432.07
Total $59,587.80
The 2020-25 CDBG Consolidated and FY 2020-21 Annual Action Plan were made
available for public comment from May 5 – June 5, 2020. The City will document
any input received. The 2020-25 CDBG Consolidated and FY 2020-21 Annual
Action Plan will be submitted to HUD by the June 29, 2020 deadline.
Sustainability Impact
None
Fiscal Impact
Sufficient funding will be available and budgeted for FY 2020-21 CDBG funding
allocations. CDBG programs and projects are funded by HUD grant funds.
Process
This is the second of two public hearings required by HUD for CDBG. The first
public hearing was held by the Housing Commission on May 14, 2020. All
required HUD notices are published in the Cupertino Courier newspaper in
advance announcing upcoming CDBG public hearings.
Prepared by: Kerri Heusler, Housing Manager
Reviewed by: Benjamin Fu, Director of Community Development
Approved by: Dianne Thompson, Assistant City Manager
Attachments:
A - Draft Resolution