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102-Attachment A.pdf ATTACHMENTA CITY OF CUPERTINO Fiscal Year 2011 Annual Action Plan Prepared by the Department of Community Development 10300 Torre Avenue Cupertino, CA 95014 Aarti Shrivastava, Director Approved by City Council May, 2011 Resolution 11- For information regarding this document, please contact: Vera Gil, Senior Planner Phone: (408) 777-3251 E-mail:verag@cupertino.org EXECUTIVE SUMMARY The Action Plan is an annual plan, which the City of Cupertino, as lead agency, oversees pursuant to the goals outlined in the Consolidated Plan. The Action Plan details the activities Cupertino will undertake to address the housing and community development needs and local objectives using funds received during that program year from the Community Development Block Grant (CDBG) plus anticipated Program Income. The Action Plan consists of HUD- developed forms plus a supplemental narrative. The largest portion of the CDBG resources continues to be used for housing and homeless programs available on a citywide basis. Fair housing activities and administrative costs will not exceed 20% of the annual allocation. Evaluation of Past Performance Over the course of fiscal year 2010/2011 the City of Cupertino anticipates providing financial assistance to 4 affordable housing units through the use of CDBG funds. The funds will be used to assist in the construction of four units by Habitat for Humanity of local CHDO. The portion of CDBG funds that will be allocated to public service subrecipients will be used to provide approximately 800 persons with food, clothing and housing counseling, 90 days of shelter to 80 homeless and adult day care to 11 households. Cupertino was successful in addressing a majority of the goals and objectives cited in the fiscal year 2010/11 Annual Action Plan. Most of the CDBG funds were used to carry out activities that benefit low and moderate-income persons. Only CDBG administration funds and a portion of ECHO’s fair housing funds did not directly serve low and moderate-income persons. Some of the funded activities include fair housing, senior services, food and clothing and emergency housing. These activities continue to make a positive impact on identified needs and are providing services that might have gone unmet. As can be expected, community needs continue to exceed the available resources. INTRODUCTION The Annual Action Plan is a one-year plan which describes the eligible programs, projects and activities to be undertaken with funds expected during the program year (Fiscal Year 2010-2011) and their relationship to the priority housing, homeless and community development needs outlined in the Consolidated Plan. FEDERAL RESOURCES The City of Cupertino’s Annual Action Plan for the 2011-12 Program Year is a comprehensive approach to addressing the immediate community needs of people who are very low and low income. The Action Plan is based on a Community Development Block Grant (CDBG) entitlement of $422,719 that the City anticipates will be received from the federal Department of Housing and Urban Development (HUD) and $10,300 in program income. Exhibit A describes the agencies proposed to receive funding in the 2011-12 fiscal year. Also detailed in the exhibit are the goals and proposed funding amount for each of the agencies. Anticipated CDBG program income during the 2011-12 Program Year is estimated to total $10,300 derived from outstanding rehabilitation program loans. A portion of that program income will be allocated to support Public Service activities and administration. The city of Cupertino will allocate $64,950 to public service activities. Consistent with CDBG regulations, this amount represents no more than 15% of the combined total of the City's projected 2011-12 Program Year income and the 2011-12 entitlement. In 1999 HUD informed the Santa Clara County that the San Jose Metropolitan Statistical Area is one of the high-income areas where the income limits were increased to the actual 80% of median income, adjusted for household size. The City of Cupertino will continue to use the actual 80% of median income limits for all of its CDBG programs in the 2010 Program Year. Individual activities may use a lower income eligibility criterion. OTHER RESOURCES Housing Mitigation Program The Office and Industrial Mitigation Program acknowledges housing needs created by the development of office and industrial projects. A fee is applied to new square footage of office and industrial development in the City. The fees collected are deposited in the City's Affordable Housing Fund and are to be used for the provision of affordable housing. The City's Residential Mitigation Program applies to all new residential development of one unit or greater. Residential developers are required to designate at least 15% of the units in an ownership development as affordable and are required to pay a mitigation fee for rental developments. These designated units are identified as the "BMR" (Below Market Rate) units. For ownership developments of six or fewer units or in the case of all rental developments, the developer may pay a fee in-lieu of building the affordable units. All affordable units developed under the BMR program must remain affordable for 99 years from the date of first occupancy and, if for sale units are resold during that period, a new 99 year time period is established. The City administers the Affordable Housing Fund, which is currently supported with fees paid through the Housing Mitigation Program. Potential options for use of the housing funds include: a. Development of new affordable units. b. Conversion of existing market rate units to affordable units. c. Down payment assistance programs. d. Second mortgage programs. West Valley Community Services– West Valley Community Services (WVCS) is a non-profit organization that assists in administering housing programs on behalf of the City of Cupertino. WVCS administers the Rotating Shelter Program for homeless individuals and also manages a transitional housing facility. Further, WVCS acts as the administrative agent on behalf of the City in managing and monitoring the BMR program. Housing Trust of Santa Clara County (HTSCC) – The HTSCC is a public/private venture, dedicated to increasing affordable housing in the Silicon Valley. The Trust makes available funds for developers to borrow for the construction of the affordable units. Cupertino originally contributed $250,000 to the fund and accessed the fund to assist in the development of Vista Village, a 24-unit affordable apartment complex constructed by BRIDGE Housing and Cupertino Community Services. Subsequently, the City contributed $25,000 in 2008 and 2009. "Move In For Less" Program - In cooperation with the Tri-County Apartment Association, this program recognizes the high cost of securing rental housing. The program is geared to classroom teachers in public or private schools who meet income criteria. Apartment owners/managers who agree to participate in the program require no more than 20% of the monthly rent as a security deposit from qualified teachers. This reduced security deposit hopefully makes it more financially feasible for a teacher to move into rental housing. Mortgage Credit Certificate (MCC) Program -The MCC program provides assistance to first- time homebuyers by allowing an eligible purchaser to take 20% of their annual mortgage interest payment as a tax credit against federal income taxes. Santa Clara County administers the MCC Program on behalf of the jurisdictions in the County, including Cupertino. The program does establish maximum sales price limits on units assisted in this program and, due to the high housing costs in Cupertino, there have been few households assisted in Cupertino in recent years. Second Unit Program -- The City's Second Unit Ordinance allows an additional unit to be built on any single-family residential parcel. The objective of this Ordinance is to encourage additional units on already developed parcels, such as parcels with single-family dwellings. Santa Clara County Affordable Housing Fund (AHF) In July 2002, the Santa Clara County Board of Supervisors created an Office of Affordable Housing and established a housing trust fund in the amount of $18.6 million to be used for affordable housing developments. The primary goal of the fund is to leverage funding with other sources and create affordable housing in Santa Clara County. Section 8 The Housing Authority of the County of Santa Clara (HACSC) provides rental subsidies and develops affordable housing for low-income families, seniors and persons with disabilities living in Santa Clara County, California, the heart of Silicon Valley. This past year, the Housing Authority provided voucher assistance to 74 Cupertino households. Density Bonus Ordinance -- The City's Density Bonus Ordinance allows a 25% increase in density for developments greater than 5 units that provide a proportion of units for very low or low-income households or housing for senior citizens. In addition to the density bonus, certain concessions can also be provided to the development, which can include: a.Reduction of Parking Requirements, b.Reduction of Open Space Requirements, c.Reduction of Setback Requirements, d.Approval of Mixed Use Zoning, e.Reduction of Park Dedication Fees, f.Reduction of application or construction permit fees, or g.Provision of tax-exempt or other financial assistance. CITIZEN PARTICIPATION The Housing Services Division of the Community Development Department is the lead agency for overseeing the development of the Consolidated Plan and Annual Action Plan. This Annual Action Plan development process began with an advertised public hearing, held by the Cupertino Housing Commission on March 10, 2011 to make funding recommendations to the City Council. In addition, to the public notice, written notification of the hearing was made to numerous non-profit service agencies and the city’s CDBG Steering Committee for the purpose of gaining greater input for determining the best use of anticipated federal funds for addressing community needs. The City Council held two advertised public hearing on April 5, 2011 and May 5, 2011, to determine the allocation of CDBG funds for the 2011 Program Year. The Annual Plan 30 day public review period occurred March 11, 2011 through April 11, 2011. The City did not receive any public comments. CONSULTATION WITH OTHER JURISDICTIONS As standard practice, CDBG entitlement jurisdictions from throughout Santa Clara County meet at least quarterly to discuss issues of common interest. Meeting agendas cover such topics as projects receiving multi-jurisdictional funding, performance levels and costs for contracted public services, proposed annual funding plans, HUD program administration requirements, and other topics of mutual concern. These quarterly meetings provided the opportunity for the City to consult with other jurisdictions on its proposed use of federal funds for the 2011 Program Year. CONSOLIDATED PLAN (CON PLAN) PRIORITIES The City of Cupertino adopted a new Consolidated Plan on May 18, 2010 with the priorities listed in Table 2A and 2B. These tables are attached and incorporated by reference as Exhibit B of this document. GEOGRAPHIC DISTRIBUTION A map outlining geographic areas considered to be of low and moderate-income concentration is included as part to this submittal. In the map, three Census tracts indicate a higher percentage of low/mod population than all other Cupertino Census tracts. It is from these three Census tracts that the City of Cupertino recruits three representatives of the CDBG Steering Committee. Funding support for the listed projects is based more on expressed need within the community rather than upon geographical priority. ANTI-POVERTY STRATEGY In a continuing effort to reduce poverty, the city of Cupertino will make it a priority to fund agencies that provide direct assistance to the homeless and those in danger of becoming homeless and make a commitment to improve the communication and service delivery capabilities of agencies and organizations that provide programs to assist the homeless. Depending on funding availability, Cupertino will continue to provide assistance to public agencies and nonprofit organizations providing neighborhood housing services, supportive services to the homeless, older adults with physical or mental impairment, the mentally ill, victims of domestic violence, and households with abused children among others. Coordinate with public agencies providing job training, life skills training, lead poisoning prevention and remediation and other education programs that listed in the City’s Consolidated Plan strategies. HOMELESS AND SPECIAL NEEDS In previous years, the City of Cupertino appropriated $20,000 in CDBG funds for the Sobrato Family Living Center Project and contributed to the Home Safe-Santa Clara providing transitional housing for survivors of domestic violence who are considered at-risk for homelessness. Most recently, in a 2008 mid-year reallocation, the City contributed $800,000 to Maitri, a non-profit agency providing transitional housing to victims of domestic violence, for the purchase of a four-plex in Cupertino. In addition to these capital project subsidies, the City will fund public service activities related to homelessness. During the 2011 program year, the city will provide $19,014 to the Haven to Home Program to provide support services to Cupertino. The City of Cupertino will also continue to coordinate services to the homeless through such inter-agency efforts as the Collaborative, Help House the Homeless, and the Community Technology Alliance and support the regional Continuum of Care. Cupertino also participated in the countywide homeless count that took place in early 2009 which reported 18 unsheltered homeless. This is an update of the surveys that took place in 2005, and 2007. In addressing senior services, the City will continue advocacy for the increased dissemination of accurate information and counseling for seniors and other persons regarding housing options available. This will be accomplished through a cooperative effort with the Cupertino Senior Center, Cupertino Community Services and the Cupertino Public Library. LEAD-BASED PAINT Lead-based paint awareness and abatement will be fully integrated by the City of Cupertino into its assisted housing programs. Each tenant, landlord and property owner will be informed of the dangers, symptoms, testing, treatment and prevention of lead-based paint poisoning. Lead-based paint hazard stabilization or abatement will be provided in each and every rehabilitation project. Furthermore, adherence to Federal guidelines for reduction activities with lead-based paint is provided for in every federally funded rehabilitation loan. PUBLIC HOUSING The City will continue to encourage the local Public Housing Authority to develop affordable units in the city of Cupertino. LEVERAGING OF FUNDS To the greatest extent possible, when feasible, the City of Cupertino will leverage public and private resources to achieve the goals of the Consolidated Plan. Cupertino will continue to request that affordable housing developers to seek private financing and grants and to fully utilize other state and federal funding sources, such as the State of California Multifamily Housing and the Low Income Housing Tax Credit programs. FAIR HOUSING Cupertino continues to support both the purpose and goal of fair housing and works to achieve fair housing in administering federal, State and local programs. The City also supports the development of affordable housing stock that is an important part of a fair housing initiative, given the high cost of local housing. In conjunction with other jurisdictions in Santa Clara County, the City commissioned a comprehensive survey to identify unmet needs and unidentified barriers, to assess the delivery of fair housing services, and to recommend action steps to meet the County's fair housing needs. The study was completed in 2003 and the city will be working with the other Santa Clara County to review program changes as a result of the study. The City prepared an Analysis of Impediments to Fair Housing Choice (AI) in 2004. The proposed actions to be undertaken by the City in the 2010 Program Year consist of the following: The City will continue to require developers to provide relocation assistance when residents will be displaced. The City will continue to provide a housing program that allows for modification of existing housing facilitating the needs of persons with disabilities. The City will continue to support non-profit organizations whose purpose is to aid in the furthering of fair housing in the community. Methods of support could include notification of fair housing rights and responsibilities distributed in brochures located in public buildings, public service announcements on the local access channel or similar methods. The City will continue to allow for the construction of higher occupancy housing complexes on a case-by-case basis when possible, for all economic segments of the community. PROGRAM MONITORING Performance monitoring for compliance to federal program requirements is scheduled at least once annually for projects that are under service contract. Monitoring of federally funded activities is undertaken for projects that are either under an annual or longer-term performance period. In addition, the City undertakes an annual Single Audit according to the requirements of the federal Office of Management and Budget. As standard practice, notification is made to HUD on the availability of the City's annual audit. URGENT OR COMMUNITY NEED In the event of a local, state or federal disaster declaration for areas within the boundaries of the City of Cupertino, the City will reserve the right to use CDBG funds to abate immediate and necessary hazards. The funds may be used for staff efforts, grants or loans to affected parties, as approved by the City Council and allowed under the federal regulations. AMENDMENTS TO PLAN Prior to the submission of any substantial amendment in the proposed use of funds, citizens will be provided reasonable notice of, and the opportunity to comment on, any proposed Action Plan amendments. RELATIONSHIP OF THE ANNUAL PLAN TO THE CONSOLIDATED PLAN G OAL 1 A SSIST IN THE CREATION AND PRESERVATION OF AFFORDABLE HOUSING FOR -INCOME AND SPECIAL NEEDS HOUSEHOLDS. LOWER Objective: Suitable Living Environment Outcome: Sustainability Outcome Statement: Provide opportunities for suitable living environments with improved/new sustainability Indicators: 1. New housing units available to various income groups 2. Overall increase in housing stock 3. Reduction in households paying too much for housing 4. Number of parcels with changed land use designations 5. Number of second units created Proposed 2011 Activity: Below Market Rate Program 2011 Goal:Create 15 Housing Units G OAL 2 S UPPORT ACTIVITIES TO END HOMELESSNESS. Objective: Suitable Living Environment Outcome: Availability/Accessibility Outcome Statement: Provide a suitable living environment with improved/new availability Indicators: 1. Number of persons assisted with homeless services 2. Number of persons assisted with emergency rental assistance. Proposed 2011 Goals: Provide homeless prevention services through Haven to Home and emergency rental assistance through WVCS Comprehensive Assistance Indicators: Provide homeless prevention services to 100 individuals Provide emergency rental assistance to 100 eligible residents a year. G OAL 3 S UPPORT ACTIVITIES THAT PROVIDE BASIC SERVICES, ELIMINATE BLIGHT, AND/OR STRENGTHEN NEIGHBORHOODS. Objective: Suitable Living Environment Outcome: Availability/Accessibility Outcome Statement: Provide funding to a variety of non-profits that assist low and very-low income residents. Indicators: 1. Support programs that provide transportation. 2. Provide funding for social service organizations that assist low and very-low income households and special needs population. Proposed 2011 Activity: Fund a variety of public service agencies that provide services to low and very-low income. 2011 Goal:Serve 1,000 low and very-low income households with support services. Provide 6,200 rider subsidies. GOAL4 P ROMOTE FAIR HOUSING CHOICE. Objective: Suitable Living Environment Outcome: Availability/Accessibility Outcome Statement: Provide a suitable living environment with improved/new availability Indicators: 1. Number of outreach activities 2. Number of households with resolved fair housing disputes Proposed 2011 Goals Eden Council for Hope and Opportunity – Fair Housing Services Indicators: Distribute 1000 brochures. Resolve 10 Fair Housing cases. G OAL 5 E XPAND ECONOMIC OPPORTUNITIES FOR LOW-INCOME HOUSEHOLDS Objective: Suitable Living Environment Outcome: Availability/Accessibility Outcome Statement: Indicators: 1. Support local employment development and workforce training programs 2. Support programs that facilitate small business development Proposed 2011Goals: Serve 60 households through Nova program Indicators: Provide employment counseling and job resources to 60 Cupertino residents. G OAL 6 P ROMOTE ENVIRONMENTAL SUSTAINABILITY Objective: Suitable Living Environment Outcome: Availability/Accessibility Outcome Statement: Encourage and fund energy efficient improvements and modifications for existing rental units serving extremely low, very low income and low income households. Indicators: 1. Fund energy efficient improvements and modifications for existing rental units serving extremely low, very low income and low income households. Proposed 2011 Goals: Provide energy efficient improvements through Rebuilding Together Silicon Valley Indicators: Provide 5-8 homes with energy improvements. Goal Goal 70101086426 Unmet Unmet Need (a) Need (a) 147493817314141 Elderly Elderly Low Low High High Priority Priority Medium Medium Goal Goal 10101029116 Unmet Unmet Need (a) Need (a) 483143583842 Large Related Large Related Low Low Low High Priority Priority Medium Medium Goal Goal 120110905623 28 (a) (a) NeedNeed Unmet Unmet 23222030811376184 Small Related Small Related sing problem, as reported by CHAS Data, Census, 2000. 16 Low High High High Priority Priority Medium Medium HUD Table 2A: Priority Housing Needs/Investment Plan RENTERS 0-30% AMI 31-50% AMI 51-80% AMI OWNERS 0-30% AMI 31-50% AMI 51-80% AMI Section 215 Goals Notes:(a) Based on households with houSources: SOCDS CHAS Data, 2009; City of Cupertino, 2010; BAE, 2010. 305123 0 10 Year 5 Goal Plan/Act. 305033 0 10 Year 4 Goal Plan/Act. 3350343 10 Year 3 Goal Plan/Act. 3003 543 10 Year 2 Goal Plan/Act. 351483 (cont’d) 1710 Year 1 Goal Plan/Act. 2 15205015 251715 5-YrGoal Plan/Act. ner units ental units CDBG Acquisition of existing rProduction of new rental units Rehabilitation of existing rental units Rental assistance Acquisition of existing owProduction of new owner units Rehabilitation of existing owner units Homeownership assistance HUD Table 2A: Priority Housing Needs/Investment Plan ATTACHMENT A ATTACHMENT A ATTACHMENT A ATTACHMENT A Legal Aide to Seniors 2011-12 Request: $9,717 Annual Goal: Serve 40 Cupertino seniors. ATTACHMENT A ATTACHMENT A ATTACHMENT A ATTACHMENT A