CC 04-16-2024 Item No. 12. 6th Cycle Housing Element Update_Staff Presentation (updated)1
City Council
April 16, 2024
6th Cycle Housing Element
Update
Agenda
Background
Current Status –Conditional Certification
Letter received from HCD (April 10)
RHNA/Priority Sites
Policies and Strategies
Timeline and next steps
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CC 04-16-2024 Item No. 12.
Updated Presentation
(4/16/24)
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Background
What is a Housing Element?
State-mandated Element of City’s General Plan
Why update it now?
Unlike other General Plan Elements required by
State law to be updated every 8 years
Purpose of the Update:
Study and plan for housing needs in the
community, across all income levels
Background
What does State law require?
Public Participation
Needs Analysis
Review of prior Housing Element policies/programs
Develop policies/programs to address current needs
Housing Sites Inventory
Who reviews and certifies compliance with
State law?
CA Department of Housing and Community
Development (HCD)
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Related Updates
Conforming changes:
Other General Plan Elements – Land Use,
Transportation, Specific Plans and appendices
Rezoning – map and text
State law requirements:
Health and Safety Element
Zoning amendments (emergency shelters etc.)
Other – necessary to implement HE programs (e.g.
Objective design standards for housing
developments)
Background
6th Cycle Housing Element update
covers 2023 – 2031 Planning Period.
Certification deadline: January 31, 2023
(passed).
Six jurisdictions in Santa Clara County (15
cities/1 county) still do not have compliant
Housing Elements
38 of 109 ABAG jurisdictions not in compliance
58 of 197 SCAG jurisdictions still out of compliance
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ABAG RHNA
State-wide Housing
Needs Determination
made by HCD for
each region within
State
Cupertino in 9
County ABAG
region
% of totalUnitsIncome Group
26.01,193Very Low Income
(<50% of AMI)
15.0687Low Income
(50%-80% of AMI)
16.5755Moderate Income
(80%-120% of AMI)
42.51,953Above Moderate Income
(>120% of AMI)
1004,588Total
Affordable
Units =
2,635
Cupertino’s 6th Cycle RHNA
Buffer ~ 25 - 35% particularly for lower income levels recommended to
ensure city does not have to update sites inventory before next HE update
for “no net loss” purposes. RHNA + Buffer accommodates over 6,200 units.
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Background: 6th Cycle vs. 5th Cycle
RHNA 4x higher in Cupertino--4,588 vs. 1,064
Few remaining undeveloped sites, reliance on
redevelopment to meet RHNA
62 properties, 36 development sites
70% of properties 50 units/acre or more
New legislation adds requirements in:
Developing policies/programs
Greater accountability to produce housing
Site selection
Less discretion approving housing developments
Affirmatively Furthering Fair Housing (AFFH)
More outreach and inclusion
Background: Noncompliance
What can happen if City does not have a
certified Housing Element?
Loss of local land use and zoning control –
Builder’s Remedy projects
Lawsuits and attorney fees
Ineligibility for grant funding
Financial penalties, court issued fines
Streamlined ministerial approval of projects
Court receivership appointing an agent to
bring City’s Housing Element into compliance
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Affirmatively Furthering Fair Housing
(AFFH) - Cupertino
City is designated High or Highest Resource
regarding Access to Opportunities
Housing anywhere in City would regionally
Affirmatively Further Fair Housing
City must look to accommodate persons who
currently do not reside here
Meeting RHNA alone does not equate to
satisfying AFFH (Missing Middle Strategy)
What’s happened so far?What’s happened so far?
2021
Comm. Mtgs
(Aug & Dec)
Jt. Study Sessions
(Apr & May)
CC Mtg (Sept)
HC Mtg (Dec)
Jan – Jun
2023
Jul – Dec
2022
CC Mtgs (Aug, Nov)
PC (July)
CEP-SAC mtgs (Jul,
Sep, Oct)
Comm. Mtg (Jul,
Sep)
Jan – Jun
2022
PC mtgs (Jan, Feb,
Apr, May, June)
CC mtgs (Mar)
HC mtg (Jun)
CEP-SAC mtgs (Mar,
Apr, May, Jun)
Comm. Mtg (May)
Jan –Mar
2024
CC Mtg (Jan)
1st Draft to HCD
(2/4)
Comments from
HCD (5/4)
2nd Draft to HCD
(10/16)
Revised 2nd Draft to
HCD (11/30)
Comments from HCD
(12/15)
3rd Draft to HCD
(2/27)
Revised 3rd Draft to
HCD (3/28)
Conditional
Certification letter
from HCD (4/10)
Jul – Dec
2023
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Sites Inventory: Pre-HE Submittal
Robust discussions in 2022 at Housing and
Planning Commissions and City Council
Started with all potential sites throughout the
City which:
Met HCD size criteria: 0.5 – 10 acres
Indicated owner interest
Outside of fire hazard and geologic and
other hazard zones –more environmental
impacts
Sites Inventory:
Direction Pre-HE submittal
More interest in accommodating housing west
of De Anza Blvd and south of 85
Less interest in accommodating housing east
of De Anza Blvd
Locate housing sites to counteract declining
school enrollment
Avoid displacement of existing residents
through redevelopment of residential
properties
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Sites -
August
2022
Policy Framework
State laws: link land use and transportation (AB 32
and SB 375)
Regional plans (Plan Bay Area 2050 and Regional
Transportation Plan) align with state law
AB 2011 (eff. July 1, 2023): Allows Residential
development on Commercial-Office Corridors
regardless of Zoning:
Density and building height varies depending
on lot size and width of transportation corridor
Identifies min. development standards
Ministerial, exempt from CEQA
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AB2011
with
HCD
size
criteria
Current Site selection strategy
With Council direction in July 2023, site selection
strategy adjusted based on:
New State law realities – AB 2011/SB6
Proximity to transportation – AB32/SB375
Aligning with regional plans – PBA2050 & RTP
City’s existing policies – LU-1.1 & CAP
Consultant experience based on likelihood of site
acceptance by HCD
Development potential of site
Size of sites – 0.5 acres (min.) to 10 acres (max.)
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Current
Housing
Element
Priority
Housing
Sites
Goals / Policies / ProgramsGoals / Policies / Programs
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Required Programs and Policies
Programs to provide Adequate Housing Sites
Programs to Assist Lower-Income Housing
Development
Programs to Address Housing Constraints
Programs to Conserve and Improve the
Housing Stock
Programs to Affirmatively Further Fair Housing
Programs to Preserve ”at risk” Units
Programs for ADUs/Second Units
Housing Policy Areas
Programs to Assist
Lower-Income
Housing
Development –
Support Grant
applications;
Provide technical
support;
Issue NOFA for BMR
Affordable Housing
Funds
Programs to Address
Housing Constraints –
Adopt Objective
standards,
Continue fee waivers
for affordable units
and/or 100%
affordable projects;
Evaluate Parking
standards
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Housing Policy Areas (cont.)
Programs to Conserve, Improve and Expand
City Housing Stock –
Requiring replacement of at least as many
units as exist on a site;
Disallow conversion of multi-family units to
Single Family;
CDBG funds for conservation/ improvements
Housing Policy Areas (cont.)
Programs to Affirmatively Further Fair
Housing –
Upzone sites adequately to allow
accommodation of RHNA;
Support teacher housing and ELI projects;
Continue to support the development of
ADUs and adopt "missing middle"
housing policies, which offer opportunities
with modest increases in density (HE
Strategy1-3-6)
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Housing Policy Areas (cont.)
Programs to Preserve
”at risk” Units –
Programs to meet with
affordable housing
operators annually.
Programs for
ADUs/Second Units –
Continue to offer
streamlined pre-
approved plans;
Evaluate and
participate in local
and regional efforts
on ADU programs.
HCD ReviewHCD Review
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Initial HCD comments
Received May 4, 2023
General in nature, but comprehensive
Asks for more analysis in several areas
Some comments do not apply to City (e.g.
manufactured homes/ADUs)
No specific feedback on Sites Inventory,
except pipeline (discussed earlier)
Second Draft HCD comments
Received December 15, 2023
Fewer comments and more specific in
nature
Still asks for more analysis in a few areas,
particularly regarding sites’ development
potential within 6th Cycle timeframe
Some feedback on Sites Inventory, other
than pipeline
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Recent informal comments
from HCD
Strengthen Missing Middle Policies for Fair
Housing purposes (Strategy HE 1-3-6)
Provide additional site analysis-Improvement
to Land Value and support for sites where
redevelopment is less certain
Continue to streamline and promote
development of ADUs
Take more proactive approach to ensure
housing is produced
Settlement/Environmental Assessment
February 2023: California Housing Defense
Fund/YIMBY Law sue City for noncompliant
HE by adoption deadline
January 2024: Stipulated Judgment entered
into - establishing schedule to complete HE
update in compliance with State law
Gov’t Code Sec. 65759(a)
CEQA does not apply to actions to bring
HE into compliance with Court Order.
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Timeline and Next StepsTimeline and Next Steps
April 2024
Letter from HCD –
4/12
HC Study Session
PC recommendation
Summer 2024
Fall 2024June 2024
Second reading
– 6/4
May 2024
Council adoption
– 5/14
Mar 2025
Prepare objective
design standards
Adopt objective
design standards
APR submitted
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