HC 12-19-2024 Searchable PacketCITY OF CUPERTINO
HOUSING COMMISSION
AGENDA
10185 North Stelling Road, Quinlan Conference Room
Thursday, December 19, 2024
5:30 PM
Special Meeting
Members of the public wishing to observe the meeting may do so in one of the following
ways:
1) Attend in person at Quinlan Community Center, 10185 N. Stelling Road
2) The meeting will also be streamed live on and online at
https://youtube.com/@cupertinocitycommission
Members of the public wishing to comment on an item on the agenda may do so in the
following ways:
1) Appear in person at Quinlan Community Center.
2) E-mail comments by 4:00 p.m. on Thursday, December 19th to the legislative body at
housingcommission@cupertino.gov. These e-mail comments will also be posted to the
City’s website after the meeting.
Oral public comments may be made during the public comment period for each agenda
item.
Members of the audience who address the legislative body must come to the
lectern/microphone and are requested to complete a Speaker Card and identify themselves.
Completion of Speaker Cards and identifying yourself is voluntary and not required to
attend the meeting or provide comments.
NOTICE AND CALL FOR A SPECIAL MEETING OF THE HOUSING COMMISSION
NOTICE IS HEREBY GIVEN that a special meeting of the Housing Commission is hereby
called for Thursday, December 19, 2024, commencing at 5:30 p.m. in Quinlan Community
Center Conference Room, 10185 North Stelling Road, Cupertino, California 95014. Said
special meeting shall be for the purpose of conducting business on the subject matters
listed below under the heading, “Special Meeting."
SPECIAL MEETING
Page 1
1
HC 12-19-2024
1 of 18
Housing Commission Agenda December 19, 2024
PLEDGE OF ALLEGIANCE
ROLL CALL
APPROVAL OF MINUTES
1.Subject: Approve the minutes of the October 24, 2024 Housing Commission meeting.
Recommended Action: Approve the minutes of the October 24, 2024 Housing
Commission meeting.
A - Draft minutes
POSTPONEMENTS
ORAL COMMUNICATIONS
This portion of the meeting is reserved for persons wishing to address the Commission on any matter
within the jurisdiction of the Commission and not on the agenda. Speakers are limited to three (3)
minutes. In most cases, State law will prohibit the Commission from making any decisions with respect
to a matter not on the agenda.
WRITTEN COMMUNICATIONS
OLD BUSINESS
NEW BUSINESS
2.Subject: 2025 Housing Commission Meeting Schedule
Recommended Action: Establish the Housing Commission meeting schedule for 2025.
3.Subject: 2025-2030 Community Development Block Grant (CDBG) Consolidated Plan
Outreach Presentation
Recommended Action: Conduct Public Hearing; and
1. Receive a presentation on development of the 2025-2030 CDBG Consolidated Plan.
Staff Report
4.Subject: Study session to amend the City’s Policy and Procedures Manual for
Administering Deed Restricted Affordable Housing Units (BMR Admin Manual)
and/or draft new City ordinance to include a new anti-displacement policy.
Recommended Action: Receive presentation and recommend approval of an
anti-displacement policy for tenants residing in expiring Below Market Rate units to
City Council for adoption.
Staff Report
STAFF AND COMMISSION REPORTS
Page 2
2
HC 12-19-2024
2 of 18
Housing Commission Agenda December 19, 2024
FUTURE AGENDA SETTING
ADJOURNMENT
In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend this
meeting who is visually or hearing impaired or has any disability that needs special assistance should
call the City Clerk's Office at 408-777-3223, at least 48 hours in advance of the meeting to arrange for
assistance. In addition, upon request in advance by a person with a disability, meeting agendas and
writings distributed for the meeting that are public records will be made available in the appropriate
alternative format.
Any writings or documents provided to a majority of the members after publication of the agenda will
be made available for public inspection. Please contact the City Clerk’s Office in City Hall located at
10300 Torre Avenue, Cupertino, California 95014, during normal business hours.
IMPORTANT NOTICE: Please be advised that pursuant to Cupertino Municipal Code section
2.08.100 written communications sent to the City Council, Commissioners or staff concerning a matter
on the agenda are included as supplemental material to the agendized item. These written
communications are accessible to the public through the City website and kept in packet archives. Do
not include any personal or private information in written communications to the City that you do not
wish to make public, as written communications are considered public records and will be made
publicly available on the City website.
Page 3
3
HC 12-19-2024
3 of 18
CITY OF CUPERTINO
Agenda Item
24-13491 Agenda Date:
12/19/2024 Agenda #: 1.
Subject: Approve the minutes of the October 24, 2024 Housing Commission meeting.
Approve the minutes of the October 24, 2024 Housing Commission meeting.
CITY OF CUPERTINO Printed on 12/10/2024Page 1 of 1
powered by Legistar™4
HC 12-19-2024
4 of 18
1
City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014
(408) 777-3308
DRAFT MINUTES OF
THE HOUSING COMMISSION MEETING HELD ON October 24, 2024
CALL TO ORDER
Chair Cunningham opened the meeting at 5:30 p.m.
ROLL CALL
Commission Members present: Connie Cunningham, Chair
Ryan Golze, Vice Chair
Angan Das, Commissioner
Yuyi He, Commissioner
Govind Tatachari, Commissioner
Staff present: Nicky Vu, Senior Housing Coordinator
APPROVAL OF MINUTES
1. Subject: Approve the September 26 Housing Commission meeting minutes
Recommended Action: Approve the September 26 Housing Commission meeting minutes.
MOTION: Golze moved, and Tatachari seconded to approve the minutes.
AYES: Cunningham, Golze, He, Das
NOES: None
ABSTAIN: None
ABSENT: Tatachari
VOTE: 4-0-0-1
POSTPONEMENTS
None
ORAL COMMUNICATIONS
No oral communications were received.
WRITTEN COMMUNICATIONS
No written communications were received.
OLD BUSINESS
None
5
HC 12-19-2024
5 of 18
2
NEW BUSINESS
2. Subject: Fiscal Year (FY) 2025-26 Notice of Funding Availability (NOFA) and Request For Proposals
(RFP)
Recommended Action: Receive informational presentation.
Senior Housing Coordinator Vu provided an overview and made a presentation.
Commissioners asked clarifying questions.
West Valley Community Services presented on the growing need for services directed towards low -
income individuals and families, but in particular those at-risk or currently experiencing homelessness.
Rebuilding Together Silicon Valley presented on the difficulties faced for low-income homeowners to
age in place when needed to complete costly repairs in their homes or to add accessibility modifications
as they lose mobility.
Seniors Adults Legal Assistance presented on the challenges that senior adults encounter when trying to
collect their benefits, and how the dangers of elder abuse can be prevalent while appearing invisible.
MOTION: Golze moved, and Tatachari seconded to close discussion on the Fiscal Year (FY) 2025-26
Notice of Funding Availability (NOFA) and Request for Proposals (RFP)
Motion carried with the following vote:
AYES: Tatachari, Cunningham, Golze, He, Das
NOES: None
ABSTAIN: None
ABSENT: None
VOTE: 5-0-0-0
Chair Cunningham closed the item.
STUDY SESSION
None.
STAFF UPDATES AND COMMISSION REPORTS
Chair Cunningham reported that there was no City Manager's Meeting for Commission Chairs within
that month.
Commissioner He reported that she attended the City Council Study Session for unhoused ser vices.
Commissioner Tatachari reported that he attended the City Council Study session for housing policy.
6
HC 12-19-2024
6 of 18
3
Senior Housing Coordinator Vu gave a report on previous items brought up for future agenda setting
from the Housing Commission.
Chair Cunningham closed the item.
Senior Housing Coordinator Vu gave a brief agenda setting update for the December Special Housing
Commission meeting, which the topic would be the presentation of the preliminary findings from public
outreach and research efforts undertaken for the development of the 2025-2030 Consolidated Plan.
Chair Cunningham closed the item.
FUTURE AGENDA SETTING
Chair Cunningham requested that staff explore the possibility of adding additional local funds to
contributions under the Human Service Grant (HSG) with the new year's budget under review.
Commissioner Das asked staff to explore where the Housing Commission purview overlaps with that of
the Planning Commission and asked if joint meetings could be held.
ADJOURNMENT
The meeting was adjourned at 7:08 p.m. to the next regularly scheduled Housing Commission meeting.
Respectfully submitted:
___
Lindsay Nelson
Administrative Assistant
7
HC 12-19-2024
7 of 18
CITY OF CUPERTINO
Agenda Item
24-13493 Agenda Date:
12/19/2024 Agenda #: 2.
Subject: 2025 Housing Commission Meeting Schedule
Establish the Housing Commission meeting schedule for 2025.
CITY OF CUPERTINO Printed on 12/10/2024Page 1 of 1
powered by Legistar™8
HC 12-19-2024
8 of 18
CITY OF CUPERTINO
Agenda Item
24-13492 Agenda Date:
12/19/2024 Agenda #: 3.
Subject: 2025-2030 Community Development Block Grant (CDBG) Consolidated Plan Outreach
Presentation
Conduct Public Hearing; and
1. Receive a presentation on development of the 2025-2030 CDBG Consolidated Plan.
CITY OF CUPERTINO Printed on 12/10/2024Page 1 of 1
powered by Legistar™9
HC 12-19-2024
9 of 18
HOUSING COMMISSION INFORMATIONAL REPORT
December 19, 2024
Subject
2025-2030 Community Development Block Grant (CDBG) Consolidated Plan Outreach
Presentation
Recommended Action
Conduct Public Hearing; and
1. Receive a presentation on development of the 2025-2030 CDBG Consolidated 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 development activities. Cupertino is one of
seven entitlement jurisdictions within Santa Clara County. 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 areas.
HUD regulations require that eligible activities selected for funding meet one of the three
national objectives: to benefit low- and moderate- income households; 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
10
HC 12-19-2024
10 of 18
2
Property acquisition for affordable housing
Rehabilitation of affordable units
Fair housing services
Economic development activities
Planning and administration of the CDBG program
2025-2030 Consolidated Plan
The Consolidated Plan is a 5 year long-range plan which determines which of the eligible
CDBG activities best aligns with the City of Cupertino’s needs based on economic,
housing, infrastructure, environmental and demographic research. Root Policy has been
selected as the consultant for the City of Cupertino to develop the 2025-2030 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.
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 through Root
Policy, the City will participate 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, 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.
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 can include various government institutions, 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. Additionally, this section addresses the public service needs of
the homeless population, special needs populations, and public housing participants in
the City.
11
HC 12-19-2024
11 of 18
3
Housing Market Analysis Section
This section discusses the housing stock in the City and the multiple factors that that
impact housing. Both constructed housing as well as housing units in the project pipeline
are compared against the City of Cupertino’s share of the Regional Needs Housing
Allocation (RHNA), which takes into account greater economic and population trends.
Market analysis is done to identify the gaps that exist between the existing housing stock
and the needs identified in the Needs Assessment section, which leads to actionable goals
that be created for HUD funded activities and projects identified in the Strategic Plan.
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 will 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. However, not
every need identified in the Plan can be met and sufficiently addressed in the next five
years due to infeasibility, lack of funding, or simply being 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.
Annual Action Plan Section
This section is a one-year plan that describes the eligible activities that the City intends to
undertake in FY 2025-2026 to address the needs and implement the strategies identified
in the adopted 2025-2030 Consolidated Plan. The Annual Action Plan describes the
activities that the City will fund to address the priority needs of the 2025-2030
Consolidated Plan.
Sustainability Impact
None
Fiscal Impact
Sufficient funding will be available and budgeted for CDBG funding allocations. CDBG
programs and projects are funded by HUD grant funds.
12
HC 12-19-2024
12 of 18
4
Process
The presentation by Root Policy to the Housing Commission will serve as the official first
public hearing and start of the City of Cupertino’s public engagement process for the 2025-
2030 Consolidated Plan. A variety of public engagement strategies will be employed,
which will inform the development 2025-2030 Consolidated Plan. A draft 2025-2030
Consolidated Plan will be presented to the Housing Commission to be recommended for
approval to the City Council.
Prepared by: Nicky Vu, Senior Housing Coordinator
Reviewed by: Luke Connolly, Assistant Director of Community Development
Approved for Submission by: Benjamin Fu, Director of Community Development
13
HC 12-19-2024
13 of 18
CITY OF CUPERTINO
Agenda Item
24-13534 Agenda Date:
12/19/2024 Agenda #: 4.
Subject:Study session to amend the City’s Policy and Procedures Manual for Administering Deed Restricted
Affordable Housing Units (BMR Admin Manual) and/or draft new City ordinance to include a new anti-
displacement policy.
Receive presentation and recommend approval of an anti-displacement policy for tenants residing in expiring
Below Market Rate units to City Council for adoption.
CITY OF CUPERTINO Printed on 12/10/2024Page 1 of 1
powered by Legistar™14
HC 12-19-2024
14 of 18
HOUSING COMMISSION STAFF REPORT
December 19, 2024
Subject
Study session to amend the City’s Policy and Procedures Manual for Administering Deed
Restricted Affordable Housing Units (BMR Admin Manual) and/or draft new City ordinance to
include a new anti-displacement policy.
Recommended Action
Receive presentation and recommend approval of an anti-displacement policy for tenants
residing in expiring Below Market Rate units to City Council for adoption.
Background
BMR Housing Mitigation Program
The City’s Housing Mitigation Program (BMR Program) was adopted in 1992 to generate
affordable housing. The ordinance requires developers to provide a specified number of
affordable owner-occupied and rental units. BMR for-sale units are made available to median
and moderate-income households. BMR rental units are made available to low and very low-
income households. The development of BMR units and collection of associated fees is
governed by the BMR Housing Mitigation Program Procedural Manual. The units are managed
in accordance with City Council adopted guidelines, separately known as the Procedures
Manual of Administering Deed Restricted Affordable Housing Units (BMR Admin Manual),
both of which are available for view on the City’s Housing website
(www.cupertino.org/housing).
Expiring BMR Rental Units
The City of Cupertino administers BMR inclusionary rental units in seven market rate
developments that have an expiration date. Three of the seven properties are set to expire in
2026, potentially leading to displacement of the 39 low-income tenants currently housed in
those units within the next two years. The most recent update of the BMR Housing Mitigation
Program Procedural Manual avoids this issue for new development by assigning the term of
affordability to run with either a term of 99 years or for the life of the property. However, there
is not a policy in place to address displacement when units built prior to the enaction of the new
regulations will expire. Overall, the City will see a total of 114 affordable rental units expire by
2040. To avoid displacement of the low-income tenants of these units, the City may consider
adopting new policies for expiring rental units. For best practices, any new policy should be
15
HC 12-19-2024
15 of 18
2
enacted in early 2025 in order to provide enough time to notify tenants in preparation of
potentially needing to find new housing.
Anti-Displacement Policy
In the City of Cupertino 2023-2031 Housing Element, Strategies HE-3.3.2 and HE-3.3.6 commit
the City to ensuring that all proper legal procedures are followed for expiring rental BMR units,
that a study for an anti-displacement policy is completed in December 2024, and that an
ordinance be implemented by June 2025. Staff has met with RISE Housing, the City’s BMR
administrator, to discuss and explore different options for addressing the issue of displacement
of low-income tenants in expiring units and to satisfy requirements of the Housing Element.
Option 1: Anti-Displacement BMR Waitlist Priority
The City’s BMR waitlist contains a system of awarding priority points to applicants who are
already Cupertino residents, who have employment in the City of Cupertino, and are public
employees within Cupertino. During the BMR Housing Lottery process, applicants are
separated into “rounds” with the applicants with the highest amount of priority points going in
the first round, and then randomly assigned numbers. The number would then determine the
order in which they are picked for units within that round. Afterwards, a new round would be
completed with applicants with less priority points and the process would repeat until no more
units are available. The first option to avoid displacement would be to create three additional
points awarded to a new category for displaced BMR rental tenants: if one is a tenant of a BMR
unit expiring within 12 months. This would allow them to expedite their rehousing process
when re-applying into the City’s BMR program with the highest priority. In addition to creating
a City-wide policy to amend the entire BMR waitlist, staff are simultaneously negotiating to
have anti-displacement priority worked into the Conditions of Approval for the Vallco Rise
project, to ensure that projects outside of the City’s primary BMR waitlist also have anti-
displacement measures. This would provide a long-term structural solution to the issue of
expiring BMR rental units, but may still result in some short-term displacement, as it would be
highly dependent on new BMR units becoming available in time.
Option 2: Anti-Displacement Relocation Assistance
The costs of tenant relocation often exceed the budget of a low-income household. These costs
can include paying for movers and storage during the transition while also paying for
application fees and deposits to their new place of residence. Furthermore, it is common
practice amongst landlords to charge new tenants payment for the first and last month of rent
prior to move in. The second option to avoid displacement would be to create a new City
ordinance to add a responsibility of property owners of deed restricted affordable units to
reimburse displaced tenants through relocation assistance. A displaced tenant would be defined
as a household which moves out of a BMR rental unit within 12 months of the expiration date
into a market rate unit. Relocation assistance would be a payment equal to the amount of three
months of Fair Market rent based on the tenant’s unit size, which is common practice in
neighboring jurisdictions. As an alternative option, the commission might also consider using
City BMR funds to supplement or even extend the term of relocation assistance for additional
months. In order for this policy to be enforceable, it must be approved in a City ordinance that
is equally or more protective than the state Tenant Bill of Rights Act (2019), also known as AB
16
HC 12-19-2024
16 of 18
3
1482. The ordinance would need to also include measures such as being applicable to all
properties that have low-income (80 percent Area Median Income tenants), that have two or
more units and must include a just cause eviction protection. This would allow for short-term
intervention for households at risk of experiencing displacement by subsidizing the rehousing
process, but only temporarily avoids displacement until the period of assistance ends.
Option 3: Both Options 1 and 2
To ensure the most comprehensive protections for low-income tenants, it is possible to pursue
both aforementioned options. Anti-Displacement Waitlist Priority provides a long-term
structural solution but is dependent on new units becoming available prior to expiration dates
to avoid displacement. Anti-Displacement Relocation Assistance provides short-term assistance
as emergency intervention in displacement but does not provide a long-term solution. Enacting
both options would subsidize the rapid rehousing of low-income households in danger of
experiencing displacement and create a structural solution in the priority system of the BMR
waitlist that places anti-displacement at the highest level of concern.
Sustainability Impact
None
Fiscal Impact
If the Housing Commission wanted to pursue using the City’s BMR fund to supplement or
extend relocation assistance, the City would need to anticipate large costs to the BMR fund
based on the Santa Clara County Fair Market Rent (which is subject to fluctuation) and the
number of units expiring for each upcoming fiscal year. The 2024 Santa Clara County Fair
Market Rents have been included in Figure 1 below:
Figure 1: 2024 Santa Clara County Fair Market Rent
Unit Size Studio 1 Bed 2 Bed 3 Bed 4 Bed 5 Bed 6 Bed
Fair Market Rent $2,383 $2,694 $3,132 $4,011 $4,425 $5,089 $5,753
3x $7,149 $8,082 $9,396 $12,033 $13,275 $15,267 $17,259
The majority of BMR units fall in either the 1-bedroom or 2-bedroom category. By using an
estimate of $3,000 for one month of Fair Market Rent per BMR unit (and therefore $9,000 for
three months of assistance), and a total of 114 BMR units expiring by 2040, the total cost to the
BMR fund of completely covering the three month assistance payment would be $1,026,000. The
cost of covering 1 month of assistance (as either part of the 3 month or as an extension to the 3
months) would be $342,000.
Next Steps
This is the first of multiple public hearings. A future public hearing of either the Housing
Commission or City Council will be held to approve a resolution for the Anti-Displacement
policy will be held at a meeting with a date and time to follow.
17
HC 12-19-2024
17 of 18
4
Prepared by: Nicky Vu, Senior Housing Coordinator
Reviewed by: Luke Connolly, Assistant Director of Community
Development
Approved for Submission by: Benjamin Fu, Director of Community Development
18
HC 12-19-2024
18 of 18