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Exhibit CC 09-20-2016 Item No. 6 MCA-2016-01 CC HearingMunicipal Code Amendment MCA-2016-01 Ordinance No. 16-2149 MCA-2016-01 An Ordinance of the City Council of the City of Cupertino Amending Titles 1 & 19: Chapter 1.10, to add Section 1.10.055, “Recording Notice of Violations”; Chapter 19.08, Section 19.08.030 “Definitions”; Chapter 19.12 Section 19.12.080 “Application Process” and Section 19.12.180 “Expiration, Extension and Revocation”; Chapter 19.28 Section 19.28.120, “Landscape Requirements”; Chapter 19.32 Section 19.32.010 “Purpose”; Repealing and Replacing Chapter 19.56, “Density Bonus”; and Chapter 19.104 to add Section 19.104.205, “Message Substitution” Background Municipal Code is reviewed periodically to ensure: Consistency with State Law. Outcomes of relevant court cases are addressed. Existing standards are clarified. Internal consistency. State-Law Consistency Chapter 19.56 –Density Bonus State Bill provisions incorporated into Chapter 19.56 –Density Bonus: AB2222 Requires density bonus projects resulting in a loss in existing affordable housing units, replace those units one- for-one in last 5 years. Extends affordability period for rentals from 30 to 55 years and expands use of equity sharing in for-sale units. AB744 Reduces parking required for affordable housing projects that are close to transit or serve individuals who have fewer cars. 19.08 -Definitions amended for consistency. Court Case Consistency Chapter 19.104 -Signs Chapter defines and regulates ‘Message Substitution.’ Response to Reed vs. Town of Gilbert. Prevents favoring of commercial speech over non- commercial speech. Prevents favoring of any protected noncommercial message over any other protected noncommercial message. Physical changes to sign not included. Clarification of Standards Chapter 1.10 –Administrative Citations, Fines, and Penalties. Defines process to record notices of violation. Chapter 19.12 –Administration Affirms any approval authority’s ability to impose conditions/restrictions on permit & review CEQA. Defines violation of conditions of approval as a violation of the Code. Chapter 19.28 –Single-Family Residential Zones Required front yard trees added to landscape covenant condition. Planning Commission Action Planning Commission reviewed proposed Ordinance on April 26, 2016 and recommended approval to the City Council (5-0). Recommendation Conduct the first reading of Ordinance No. 16-2149 “An ordinance of the City Council of the City of Cupertino amending Title 1, Chapter 1.10, to add Section 1.10.055, “Recording Notice of Violations”; amending Title 19, Chapter 19.08, Section 19.08.030 “Definitions”, amending Chapter 19.12 Section 19.12.080 “Application Process” and Section 19.12.180 “Expiration, Extension and Revocation”, amending Chapter 19.28 Section 19.28.120, “Landscape Requirements”, amending Chapter 19.32 Section 19.32.010 “Purpose”, repealing and replacing Chapter 19.56, “Density Bonus”, and amending Chapter 19.104 to add Section 19.104.205, “Message Substitution”; related to permits, procedures, and requirements of the code to conform to law, ensure internal consistency, and provide clarification. Next Steps City Council 2nd Reading 10/4/2016 2015 Housing and Community Development (HCD) Maximum Income Limits Per Household Size Size 1 2 3 4 5 6 Very Low -Income $37,250 $42,550 $47,850 $53,150 $57,450 $61,700 Low-Income $59,400 $67,900 $76,400 $84,900 $91,650 $98,450 Median $74,400 $85,050 $95,650 $106,300 $114,800 $123,300 Moderate $89,300 $102,050 $114,800 $127,550 $137,750 $147,950 Affordable Housing Calculations Affordable Housing Costs Ownership Housing = California Health & Safety Code Section 50052.5) Moderate-Income = 35% x 110% of Area Median Income (AMI), adjusted for household size. Rental Housing = California Health & Safety Code Section 50053 Low-Income = 30% x 60% of Area Median Income (AMI), adjusted for household size. Very Low-Income = 30% x 50% of Area Median Income (AMI), adjusted for household size. Affordable Income Limits California Department of Housing and Community Development (HCD) Area Median Income (AMI) for Santa Clara County, per household size Moderate-Income = 100% -120% of AMI Median-Income = 80% -100% of AMI Low-Income = 50% -80% of AMI Very Low-Income = 30% -50% of AMI