HC 12-19-2024 PresentationsHousing Commission
Meeting
December 19, 2024
Presentations
Item 3
2025-2030 Community
Development Block Grant
(CDBG) Consolidated
Plan Outreach
Presentation
Nicky Vu, Senior Housing Coordinator
December 19, 2024
FY 2025-30 Consolidated HUD Plan
and Anti-Displacement Policy
Agenda
●Approve minutes of the Oct 24, 2024
Housing Commission meeting
●Set the 2025 Housing Commission meeting
schedule
●Receiving presentation from Root Policy
on development of 2025-2030
Consolidated HUD Plan
●Study session for new Anti-Displacement
Policy
Date Topic
January 23, 2025
February 27, 2025
March 27, 2025
FY 2025-26 Grant Funding Recommendations, Election of
Chair/Vice Chair
April 24, 2025
May 22, 2025 PY 2025 CDBG Annual Action Plan
June 26, 2025
July 24, 2025
August 28, 2025
September 25,
2025 PY 2024 CDBG CAPER
October 23, 2025 2026 meeting schedule, NOFA
November 27,
2025
December 25,
2025
2025-2029
CONSOLIDATED PLAN
Cupertino, California
Denver, Colorado 80220
970.880.1415 x 102
hello@rootpolicy.com
Presented by: Heidi Aggeler, Managing Director
heidi@rootpolicy.com
Today’s
Agenda •Introductions
•Brief background on
Consolidated Plan
•Preliminary findings from
needs and market analysis
Consolidated Plan
Brief Overview
3
WHAT IS A
“CONSOLIDATED PLAN?”
A Consolidated Plan is a planning document required by the U.S. Department
of Housing and Urban Development (HUD)
It uses a combination of data and community outreach to identify the top
housing, community development, and economic development needs in a
city or county—as well as gaps in supportive services
The funding associated with the Consolidated Plan benefits low and
moderate income populations
The document is produced every 5 years as a condition of receiving housing
and community development funding
HUD BLOCK GRANT
FUNDING
Community Development Block Grant (CDBG)—housing rehabilitation,
street and sidewalk improvements, community facilities, public infrastructure,
rental assistance, downpayment assistance, supportive services (15% of total
grant)
HOME Investment Partnerships Program (HOME)—build affordable
housing, acquire and redevelopment housing
Emergency Solutions Grant (ESG)—services and housing for people
experiencing or at risk of homelessness
Housing Opportunities for Persons with AIDS (HOPWA)—services and
housing for people with HIV/AIDS
WHO COMPLETES A
CONSOLIDATED PLAN?
6
Participating Jurisdictions—separate Consolidated
Plans
Cupertino, Gilroy, Milpitas, Mountain View, Palo Alto, San Jose, Santa Clara (City),
Sunnyvale, Santa Clara Urban County
Urban County—included in County’s Consolidated
Plan
Campbell, Los Altos, Los Altos Hills, Los Gatos, Monte Sereno, Morgan Hill, Saratoga,
unincorporated area
FUNDING AMOUNTS
7
You can find how much HUD funding cities, counties, and states receive by searching for “CDBG allocation.” You will find
that in a spreadsheet like this one: https://www.hud.gov/program_offices/comm_planning/budget/fy24
Visit the website to learn more!
www.letstalkhousingscc.org
Take the community survey before Dec. 31
at: bit.ly/SCCNeedsSurvey
COMMUNITY ENGAGEMENT
We really want to hear from a range of county
residents and stakeholders,
so please spread the word
Community Engagement Update
9
Resident and Stakeholder Survey:
•Survey extended until December 31, 2024
•954 responses from north Santa Clara County including 76 stakeholders
•Demographics:
12% precariously housed, 33% renters, 54% homeowners
42% have incomes less than $100k annually
14% Hispanic/Latino, 3% Black/African American, 49% non-Hispanic white
38% have children under 18 (75% of these families are single parents)
Half of respondents have some type of disability
23% are over 65, half are between 35 and 64
10
Preliminary Survey Results: Community Development Priorities
Housing Needs & Gaps
Preliminary Data Overview
11
Growth in Typical Rent and Typical Home
Prices
12
Typical Home Price, 2024: $2.82M
Annual income required to afford: $1.01M
Median household income (2023): $231k
Typical Monthly Rent, 2024: $3,736
Annual income required to afford: $149k
Median renter household income (2023): $197k
Zillow Home Value Index Zillow Observed Rent Index
Growth in Income, Rent, and Home Values,
2018-2023
13
Summary of Change in Income, Rent, Value, and Income
Required to Afford a Typical Home, 2018–2023
Median Household Income Growth by
Tenure, 2018–2023
Cost Burden by Tenure, 2018 and 2023
14
Rental Gaps: Cupertino, 2023
15
Rental Gaps
Income Range
Maximum
Affordable
Gross Rent
# of Renter
Households
# of Rental
Units
Affordable Rental Gap
Cumulative
Gap
Less than $5,000 $125 377 0 -377 -377
$5,000 to $9,999 $250 73 10 -63 -440
$10,000 to $14,999 $375 111 51 -60 -501
$15,000 to $19,999 $500 114 81 -33 -534
$20,000 to $24,999 $625 147 32 -115 -649
$25,000 to $34,999 $875 163 89 -74 -723
$35,000 to $49,999 $1,250 319 141 -178 -902
$50,000 to $74,999 $1,875 482 243 -239 -1,140
$75,000 to $99,999 $2,500 409 656 247 -893
$100,000 or more 963 7,338 1,344 451
Rental gaps exist for
households earning up to
$75,000/year. Households
earning up to $75,000/year must
often rent higher priced units,
becoming cost burdened and
putting pressure on the supply
of units at higher price points.
Cumulatively, shortages in
affordable rental units
affect households earning
up to and more than
$100,000.
Renter Purchase Gaps: Cupertino, 2023
16
39% of Cupertino’s
potential first-time
homebuyers earn less
than $150,000, but less
than 2% of owner-
occupied units are valued
within their affordable
price range.
Due to data limitations, it is not
possible to show mismatches in
supply and demand at higher
income levels.
Renter Purchase Gaps
Income Range
Maximum
Affordable
Price
% of Renter
Households
% of Homes
Affordable
Renter
Purchase
Gap
Cumulative
Gap
Less than $5,000 $14,023 5%1%-4%-4%
$5,000 to $9,999 $28,043 1%0%-1%-4%
$10,000 to $14,999 $42,066 1%0%-1%-6%
$15,000 to $19,999 $56,089 1%0%-1%-7%
$20,000 to $24,999 $70,112 2%0%-2%-9%
$25,000 to $34,999 $98,158 2%0%-2%-11%
$35,000 to $49,999 $140,227 4%0%-4%-15%
$50,000 to $74,999 $210,342 6%0%-6%-20%
$75,000 to $99,999 $280,458 5%0%-5%-25%
$100,000 to $149,999 $420,688 12%0%-11%-37%
$150,000 or more 61%98%37%
2025-2030 HUD Consolidated Plan
●5-Year Long Range Plan that determines
priorities for federal funding (CDBG, HOME)
●Research/outreach for City needs
●Economic
●Housing
●Infrastructure
●Environmental
●Demographic
●Root Policy Presentation
Housing Commission
Meeting
December 19, 2024
Presentations
Item 4
Study Session to Amend the
City's Policy and Procedures
Manual for Administering
Deed Restricted Affordable
Housing Units (BMR Admin
Manual) and/or draft a
new City ordinance to
include a new anti-
displacement policy.
Study Session
Anti-Displacement Policy
Background
●Below Market Rate Inclusionary Policy
●Market rate housing development must
provide 15% of units as affordable
●Expiration date of (35) years (now 99 years)
●Rental units that expire risk displacement for
tenants if landlords increase rent to market rate
Expiring Rental Units
Apartment
Building Units
Restrictions
Expire
Aviare 20 7/8/2026
Forge Homestead 15 7/15/2026
Park (City Center)4 7/31/2026
Hamptons 34 10/20/2027
Arioso 20 1/29/2028
Biltmore 2 8/30/2029
Aviare 2 7/8/2038
Markham 17 11/4/2039
TOTAL 114
Housing Element
Strategy HE 3.3.2
●Ensure proper legal and noticing
procedures for properties with expiring
rental BMR units
Strategy HE 3.3.6
●Study potential Anti-Displacement
strategy (Dec 2024) and create new
policy (June 2025)
Option 1: Anti-Displacement
BMR Waitlist Priority
●City’s BMR waitlist has a system that
awards priority points for:
●Cupertino residents
●Cupertino employees
●Cupertino public workers
●Add three additional points for “BMR
Displaced” Category – if one is a tenant of
a BMR rental expiring within 12 months
●Amend the BMR Admin Manual
Example Priority List
Option 2: Anti-Displacement
Relocation Assistance
●Costs of relocation are high: deposit, first &
last month of rent, application fees,
movers, storage
●Add responsibility of property owners to
pay tenant 3 months of Fair Market Rent, if
tenant moves from BMR to market rate unit
within 12 months of expiration date
●Pass new City ordinance with other
protections to be equivalent to state
Tenant Bill of Rights (2019)
Per Unit Assistance Payment
Figure 1: 2024 Santa Clara County Fair Market Rent
Unit Size Studio
1
Bedroom
2
Bedroom
3
Bedroom
4
Bedroom
5
Bedroom
6
Bedroom
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
Option 3: Both
●Anti-Displacement Waitlist Priority provides a long-
term structural solution, but is dependent on new
units coming available before expiry 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
●Pursuing both options would provide the most
comprehensive tenant protections
Alternatives
●Option 1B: Negotiate Anti-Displacement
priority into developments individually in
Conditions of Approval
●Does not fulfill Housing Element
requirements
●Highly dependent on developer
●Option 2B: Use City BMR Funds to either
supplement or extend the relocation
assistance
●Large fiscal impact to BMR fund
Fiscal Impact
●If either or both options are pursued as
written
●No fiscal impact to the City
●If City BMR funds are used to
supplement or extend relocation
assistance (Option 2B)
●$342,000 for 1 month of additional
assistance for all 114 units
●$1,026,000 for 3 months assistance
of all 114 units
Discussion
●Each Commissioner to state which Option they
are in favor of (1, 2, 3) , as they are written, or if
they want to use alternatives (1B, 2B).
Process
●Either amend BMR Admin Manual or
propose new City ordinance (or both)
●Resolution either from Housing Commission
or City Council
Important Dates
●Study Complete Dec 2024
●Feb 2024/April 2024
●Policy Proposed June 2025
NickyV@cupertino.gov