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11A CDBG Consolidated Plan m . CITY Of CUPEIQ"INO City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 (408) 777-3308 FAX (408) 777-3333 Community Development Department Planning Division Summary Agenda Item No. II It Agenda Date: March 21, 2006 SUBJECT: Conduct a second public hearing to consider and adopt the City of Cupertino Community Development Block Grant (CDBG) Program Consolidated Plan. RECOMMENDATION: Staff recommends Council approve for submittal to the Department of Housing and Urban Development (HUD) the City of Cupertino Community Development Block Grant (CDBG) Program Consolidated Plan. DISCUSSION: Background: The Consolidated Plan is the federal equivalent of the Housing Element detailing Cupertino's housing needs and how these needs are addressed. The City's consultant, D.R. Elrod and Associates, recently completed the draft Consolidated Plan that is attached for review. In 2003, the City of Cupertino participated in a pilot program allowing select cities to reference the Housing Element and other published documents rather than recreate work. This process significantly streamlined the size of the document. In addition to referencing the recently approved Housing Element, the updated Consolidated Plan also incorporates 2000 Census data that was not compiled in 2003 and results of a countywide phone survey on community development needs. The City Council held the first Public Hearing on March 7, 2006 during the public comment period. This is the final public hearing and the last day public comments may be accepted. The City Council suggested amendments to the document as it relates to language concerning Economic and Social Opportunities, which did not apply for funding from the City of Cupertino this fiscal year, the vacancy rate and two General Plan implementation programs. Staff has verified which General Plan implementation programs remain in the new Housing Element and removed references to Economic and Social Opportunities in the Consolidated Plan although the full reference will still remain in the Housing Element. Staff also verified that the vacancy rate provided by H:\ -CDBG\ ConPlan 2005\ CC Con plan report 2.doc rift-I Page 2 RealFacts is accurate, but a footnote has been added referencing that RealFacts surveys complexes of 40 units and higher while the City requires condo conversion applicants to survey apartment complexes of four units or more. Following the approval, staff will submit to HUD the Consolidated Plan, which will include the Annual Plan along with a standard Application for Federal Assistance (HUD-424 and the appropriate Certifications. The HUD-424 form and the Certifications must be signed by the City Manager prior to submittal to HUD. The Certifications require the City of Cupertino to certify that the city and appropriate staff will affirmatively further fair housing, comply with federal relocation and displacement policies, provide a drug free workplace, prohibit the use of federal funds for lobbying activities, prohibit excessive force by the law enforcement agency operating in the city limits, follow a citizen participation plan, comply with anti-discrimination laws, comply with lead-based paint requirements and require any activities be consistent with the approved Consolidated Plan. Citizen Participation Plan: Federal Regulations require the City of Cupertino to develop and follow a detailed citizen participation plan which provides for, and encourages, citizen participation and emphasizes participation by persons of low- or moderate-income, particularly residents of predominantly low- and moderate-income neighborhoods, slum or blighted areas, and areas in which the grantee proposes to use CDBG funds. The plan must provide citizens with reasonable and timely access to local meetings and the opportunity to review proposed activities and program performance; provide for timely written answers to written complaints and grievances; and identify how the needs of non- English speaking residents will be met in the case of public hearings where a significant number of non-English speaking residents can be reasonably expected to participate. This plan was released for public review and comment on February 19, 2003 and is always available for review at City Hall. Prepared by Vera Gil, Senior Planner Approved by: ~ David W. Knapp City Manager Attachments: Resolution No. 06- Draft Consolidated Plan H:\-CDBG\ConPlan 2005\CC Con plan report 2.doc (( fl-.J- RESOLUTION NO. 06-056 DRAFT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO APPROVING THE 2006-09 CONSOLIDATED PLAN AND AUTHORIZING THE CITY MANAGER TO SUBMIT SAID PLAN TO HUD WHEREAS, the Housing and Community Development Act of 1974 provides that funds be made available for the Community Development Block Grant (CDBG) Program through the United States Department of Housing and Urban Development (HUD); and WHEREAS, the City of Cupertino participates in the CDBG Program in order to provide affordable housing opportunities for very-low and low income persons and families; and WHEREAS, the City of Cupertino is required to have in place Consolidated prior to the encumbrance ofCDBG funds; and WHEREAS, the City of Cupertino must submit said plan along with an Application for Federal Funding, and signed Certifications to HUD prior to encumbrance ofCDBG funds; NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Cupertino hereby approves the 2006-09 Consolidated, Annual and Citizen Participation Plans and authorizes the City Manager to sign the Application for Federal Funding and the appropriate Certifications and submit the documents to the Department of Housing and Urban Development. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 21 st day of March 2006 by the following vote: VOTE MEMBERS OF THE CITY COUNCIL AYES: NOES: ABSENT: ABSTAIN: Attest: Approved: City Clerk Mayor, City of Cupertino (( ~ -3 Di"-'RA F'T "j \. ,~~. ... r-~'~ "i-"~' ".I'd) ,,~')J,~\j"- J CONSOLIDATED PLAN AND ANNUAL ACTION PLAN 2006-2009 MARCH 2006 For more information, contact Vera GiI, Senior Planner City of Cupertino 10300 Torre Avenue Cupertino, CA 95014-3255 408-777-3251 {(~~ Table of Contents Development of the Consolidated Plan ......................".........................."...."1 Housing and Homeless Needs Assessment ...............................................3 Housing Market Conditions....................................................................... 13 Four-Year Strategy...................... .................................. ...........................19 Monitoring Plan.................. .......... ................................ .............................35 Tables ............................ ........................... .................... ....................37 One-Year Action Plan ... .... ....... ............ ............. .... ................ ...... ...... ........41 Appendices ({ Q-5 DEVELOPMENT OF THE CONSOLIDATED PLAN Time Frame -Cupertino's first Consolidated Plan was effective from 2003 to 2005, in order to be consistent with yet-to-be-released special Census tabulations. Now that the Census tabulations are available, and so that Cupertino's Consolidated Plan will run concurrently with other jurisdictions in the County, this ConPlan will be effective from 2006 to 2009. Lead Agency -Cupertino's Department of Planning, Building and Housing coordinates the overall completion of the Consolidated Plan, with the support of other Departments, such as Parks and Recreation and Environmental Services. It also coordinates input from the public and the City Council, and schedules public hearings and community meetings" Participant Agencies - In addition to the Departments listed above, the City coordinates the Consolidated Planning process with the following Santa Clara County agencies: Agency Location Housing and Community Development Department of Planning and Community Development Department of Planning Division of Community Services Department of Community Development Department of Housing and Community Development Housing Authority of the County of Santa Ciara City of Gilroy City of Mountain View City of Palo Alto City of Santa Clara City of Sunnyvale County of Santa Clara County of Santa Clara The agencies listed above meet on an ongoing basis to share information and strategies for addressing housing needs, and to provide HUD with information regarding the County's regional approach to certain housing issues (such as homelessness)" Citizen Participation Process-- The following table highlights the citizen participation process for the Consolidated Plan. The City held a total of six hearings on the plan and the proposed use of funds. Hearings were noticed in local newspapers of general circulation, and individual organizations and agencies were mailed invitations directly" Notices and flyers were also translated into languages other than English to ensure the broadest representation possible. A summary of comments from the public hearings and written testimony can be found in an appendix. City of Cupertino 2006-2009 Consolidated Plan Page 1 /I ~-L Milestone Date Type of Notice/Action Hearing on housing needs February 9, Invitation to organizations and agencies. Notice 2006 oosted at librarv, city hall and senior center. Published Notice February 17, Notice Releasing Document for Comment 2006 Published Notice March 1, Notice of proposed allocations with explanation of the 2006 Con Plan, with remaining hearing schedule. Hearing on Consolidated Plan March 7, Public Notice published in Cupertino Courier. Notice ICitv Council) 2006 Dosted at librarv, city hall and senior center. Hearing on Consolidated Plan March 9, Public Notice published in Cupertino Courier. Notice and Use of Funds (Housing 2006 posted at library, city hall and senior center. Commission) Hearing on Consolidated Plan March 21, Public Notice published in Cupertino Courier. Notice and Use of Funds (City 2006 posted at library, city hall and senior center. Council) Final Hearing on Consolidated April 4, 2006 Public Notice published in Cupertino Courier. Notice Plan and Annual Action Plan posted at library, city hall and senior center. (City Council) City of Cupertino 2006-2009 Consolidated Plan Page 2 (( a. - ( HOUSING AND HOMELESS NEEDS ASSESSMENT The City's certified Housing Element provides substantial information on housing needs in Cupertino, and is incorporated here by reference. The Housing Element includes an analysis of the housing stock and households, estimates of Regional Housing Needs, evaluation of past progress in meeting Housing Element goals, and projected goals, policies and programs" In addition, the City is an active partner in the Countywide Continuum of Care Plan (CofC), which is also incorporated by reference into this Consolidated Plan. The Plan seeks to create a comprehensive and coordinated system of affordable housing and support services for the prevention, reduction and eventual end of homelessness. A summary of demographics and needs from these sources can be found below, supplemented by relevant data from the "CHAS Databook." Population: Between 1960 and the year 2000, Cupertino experienced a substantial growth in population, reflecting northern Santa Clara County's transition from an agricultural center to worldwide headquarters for high technology. By the year 2020, Cupertino's population is expected to reach 66,400 persons. Race/Ethnicity: The 2000 Census revealed that Cupertino has become a diverse community. Between 1990 and 2000, the Asian-American population increased from 23% to 44%, almost equaling the Caucasian population. 70,000 60,000 50,000 40,000 30,000 20,000 10,000 1970 1980 1990 2000 2020 100% "-----.----..> c o .¡:¡ 75% .!!1 ~ a. o a. 'õ 50% w '" ~ ~ c w u ~ w a. _1990 _ 2000 ._~----< 0% White Black Hispanic Other Asian City of Cupertino 2006-2009 Consolidated Plan Page 3 ((tl-8 Age: Between 1990 and 2000, the percentage of children, teenagers and older adults (65 or over) increased while the 20-65 age group declined, consistent with State and national trends. Households: Although household sizes dropped to 2.64 persons per household in 1990. they are on the climb again, and are expected to reach just over 2.81 in 2020. 1990 Percent 2000 Percent Change of Tatal oITotal 1990- Age Group Population Population 2000 Under 5 6.0% 6.1% 0.1% 5-19Years 17.8% 22.3% 4.5% 20 - 54 Years 58.0% 51.9% ·6.1% 55 - 64 Years 9.8% 8.7% -1.1% 65 - 74 Years 5.2% 5.8% 0.6% 75+ Years 3.2% 5.2% 2.0% 2.85 2.80 2.75 2.70 2.65 2.60 o ro '" 8 $ 8 o '" o o '" l<J o '" Income Levels: According to the 2000 Census, almost 13% of all households earned less than 50% of the median income and were considered very low-income. Another 6.7% were considered low-income. These figures represent increases over what was found in the 1990 Census. The vast majority of the households in Cupertino, however, continue to be considered moderate income and above. The following table splits out this data by renters and owners. 1990 2000 1990 2000 1990 2000 CATEGORY % VLl % VLI % LI % LI % MOD+ % MOD+ Renter Households Owner Households TOTAL 13.50% 4.80% 8.00% 16"6% 10.7% 12.8% 7.2% 3.0% 4.5% 7.6% 6.2% 6.7% 79"3% 92"2% 87.5% 75.8% 83.1% 80.4% Many of the lower-income households include service workers who contribute to and are employed in the City of Cupertino and surrounding areas. For example, a full-time service worker earning $10 per hour has an annual income of less than $21,000, making him or her a very low-income person. Similarly, a three-person household with a teacher as the primary wage-earner and a spouse who stays at home to care for the child would likely have an income of less than $62,150 per year and would be considered a low-income household. As of 2005, the US Department of Housing and Urban Development (HUD) defines the various income levels as follows: City of Cupertino 2006-2Q09 Consolidated Plan Page 4 If tt-1 Number of Persons in Family 1 2 3 4 5 6 7 8 ELI(30% of MFI\ $22,300 $25,450 $28,650 $31 850 $34 400 $36,900 $39,450 $42,000 VLl 150% of MFI\ $37,150 $42,450 $47,750 $53,050 $57,300 $61,550 $65,800 $70,050 LI (BO% of MFI\ $59,400 $67,900 $76,400 $84,900 $91,650 $98,450 $105,250 $112,050 MEDIAN 1100% of MFI) $73,850 $84,400 $94,950 $105,500 $113,950 $122,400 $130,800 $139,250 MOO-i120% of MFI\ $88,620 $101,280 $113,940 $126,600 $136,740 $146,880 $156,960 $167,100 Geographic Distribution of Minority and Low-Income Concentrations: HUD suggests that any Census tract that has a minority population that is 20 percentage points greater than that of the group's total population within the community would indicate an area of minority concentration. Based on the 2000 data, there are no Census tracts that are considered to contain a minority concentration. % Needed to Qualify as Minority/Ethnic Group Citywide % "Concentration" Qualifying Tracts African American 0.7% 20.7% None Native American 0.2% 20.2% None Asian American 44.4% 64.4% None Pacific Islander 0.1% 20.1% None Hisnanic 4.0% 24.0% None In addition, the Consolidated Plan regulations require that to the extent that any racial or ethnic group has disproportionately greater need in comparison to the needs of that category as a whole, assessment of that specific need shall be included. For this purpose, disproportionately greater need exists when the percentage of persons in a category of need who are of a particular racial or ethnic group is at least 10 percentage points higher than the percentage of persons in the category as a whole. According to the only Census data available to determine potential areas of disproportionate need, the following categories of households have disproportionately higher percentages with any housing problems. 1 Number of Racial/Ethnic Group Households VLl Asian Renter Households 128 LI Hisoanic Renter Households 29 MOD Slack Owner Househoids 7 . . It should be noted, however, that this information represents a very small number of households with disproportionate needs. In general, the housing needs of various income groups within various ethnic/racial categories tend to be similar with one another. Cost Burden: In general, "affordable housing" is that in which a household pays no more than 30% of its income for housing, including utility costs. Households paying more than this are considered cost burdened, while those paying more than 50% are severely cost burdened. According to 2000 Census data, about 65% of the City's very 1 Defined as overcrowding, overpayment for housing cost, substandard conditions, or any combination of these three factors. City of Cupertino 2006-2009 Consolidated Plan ,Page 5 (rt\~fD low-income households paid more than 30% of their income on housing (a reduction from 1990, when the figure was about 72%). About 60% of all low-income households were similarly burdened in 2000, while 20% of all households at moderate incomes and above had a cost burden. At-Risk of Home/essness: In conjunction with other factors, such as unemployment or other income problems and chronic health concerns, a family with a cost burden may be at risk of homelessness. Based on available data, there are probably between 1,000 and 1,500 households that are at risk of homelessness. Overcrowding: According to the 1990 Census - the most recent Census data available on overcrowding -- there were 618 households that could be classified as overcrowded, defined as more than one person per room. However, using this definition, this figure represents only about 4% of all households. Looking at the information provided by HUD in the CHAS Databook from the early 1990s, the following picture emerges: Over- %of Over- %of TOTAL Crowded Total Renter Crowded Total Owner OVER- TOTAL % Renter Renter HHs Over- Owner Owner HHs Over- CROWOEO TOTAL OVER- Income HHs HHs Crowded HHs HHs Crowded HHs HHs CROWDED 0-30% 42 386 10.9% 0 297 0.0% 42 683 6.1% 31-50% 46 371 12.4% 0 167 0.0% 46 538 8.6% 51-80% 41 402 10.2% 10 287 3.5% 51 689 7.4% 81-95% 32 314 10.2% 21 297 7.1% 53 611 8.7% 95%+ 217 4,115 5.3% 192 8,625 2.2% 409 12,740 3.2% TOTAL 378 5,588 6.8% 223 9,673 2.3% 601 15,261 3.9% This table shows that, of the 15,000 households in Cupertino in 1990, just 601 were overcrowded. It also shows that, in general, the lower the income, the higher the percentage of households that are overcrowded. Renters tend to be more overcrowded than owners. Additional data suggest that large families tended to be more overcrowded than small families. Waiting Lists for Housing Assistance: Service providers often have waiting lists for individuals and families seeking housing and related services. As an example, the Housing Authority maintains waiting lists for persons seeking housing through their voucher program. As of this writing, there are just three (3) applicants on the waiting list in Cupertino" The low number is in part the result of the Housing Authority's successful efforts to place more Cupertino families in assisted housing through the Section 8 program. Housing Needs of Homeless Persons: In 2004, a consortium of community development agencies throughout the County jointly funded a homeless census and survey. Published in May 2005 and incorporated by reference, the survey showed that there were 71 unsheltered homeless people and 30 sheltered homeless people living in Cupertino when the survey was conducted. This represents 1.3% of the total Countywide homeless population surveyed. City of Cupertino 2006-2009 Consolidated Plan Page 6 I ( fA. -{ In addition, the Countywide agencies jointly funded the completion of a needs assessment as part of an effort to update each jurisdiction's five-year Consolidated Plan. Some of the key findings on homelessness from that report, which is incorporated here by reference, include the following: Homeless Population -- The most recent estimate of the homeless population in Cupertino is provided in Table 1. It is estimated that there are 54 homeless persons in Cupertino. Within Santa Clara County, there are an estimated 7,214 persons who are homeless, of which 37.7 percent have shelter. In Cupertino, 21 homeless persons (38.9 percent) have shelter. Homeless Individuals -- As indicated in Table 1, homeless individuais comprise approximately 74.1 percent of the homeless population in Cupertino, compared with 69.4 percent of the homeless population in the County. Unsheltered homeless individuals account for 53.7 percent of the total homeless population in Cupertino. According to information in the Santa Clara Countywide Five-Year Continuum of Care Pian (Countywide Five-Year Plan), approximately 74 percent of the urban homeless are single-adults. The overwhelming majority of single homeless adults are male (about 75 percent). Homeless Families -- Members of homeless families make up slightly over one-quarter of the homeless population in Cupertino. By comparison, almost one-quarter of the urban homeless population in the County are members of homeless families. Single mothers head the majority of homeless families - 66 percent according to the Countywide Five-Year Plan. The Countywide Five-Year Plan also stated that 227 dependent children accompanied 284 homeless people surveyed, or approximately 44.4 percent of the total sampie. This was an increase from a 1995 study of the homeless in the County, which indicated that chiidren in homeless families comprised 23 percent of the total sample. Homeless Subpopulations -- Table 1 also provides a breakdown of the homeless population by subpopulations. A description of each sub population and their estimated number in Cupertino follows. As with the homeless population in general, characterization of the homeless subpopulations are based on the County's HMIS data, the allocation of which have been assigned according to the proportion of clients in the HMIS database that reported Cupertino as his or her last place of permanent residence. Chronically Homeless -- The Interagency Council on Homelessness has defined someone who is "chronically homeless" as "being disabled and either being continuously homeless for a year or more or having had at least four homeless episodes during the last three years." There are an estimated totai of seven chronically homeless persons in Cupertino" Countywide, there were 931 chronically homeless persons, of whom only one-fifth were in shelters. Persons with Severe Mental Illness -- In Cupertino, there are an estimated eight homeless persons who are seriously mentally ill. In the County, there are 952 such homeless persons. According to the Countywide Five-Year Plan, 90 percent of the homeless identified as mentally ill were single. The major barrier to stable, decent housing for the seriousiy mentally ill is the availability of affordable housing. A substantial majority of persons in this population depend solely on Social Security Insurance (SSI) payments. These payments, which averaged $550 in 2004, permit very few persons in this population to afford rental housing on the open market. City of Cupertino 2006-2009 Consolidated Plan Page 7 II fÅ-....{ 2-- Table 1A Homeless and Special Needs Populations Continuum of Care: Unmet Needl Gap Emeroencv Shelter 7 0 13 Beds Transitional Housing 5 0 18 Permanent Supportive Housino 2 1 11 Total 14 1 42 Persons in Families with Children Emeroencv Shelter 3 0 1 Beds Transitional Housing 9 0 2 Permanent Sunnortive Housinn 4 0 3 Total 16 0 6 Continuum of Care: Homeless Po ulation and Sub 0 ulations Chart Part 1: Homeless Population Sheltered Emer enc Transitional 7 4 1 2 3 7 Unsheltered Total 1. Homeless Individuals 2. Homeless Families with Children 2a. Persons in Homeless Families with Children Total (Hnes 1 + 2a) Part 2: Homeless Subpopulations 1. . Chronicall Homeless 2. Seriousl Mentall III 3. Chronic Substance Abuse 4. Veterans 5" Persons with HIV/AIDS 6. Victims of Domestic Violence 7. Youth 29 1 4 40 4 14 10 11 33 Unsheltered 6 54 Total 7 Sheltered 1 8 6 2 1 4 1 Persons with Substance Abuse Problems -- An estimated six homeless persons in Cupertino had chronic substance abuse problems, either with alcohol or with other drugs, or sometimes with a combination of substances. Santa Clara County had 816 homeless persons with substance abuse probiems. In past surveys, substance abuse appeared to be a major factor in the cause of homelessness. A substantial number of homeless surveyed in 1997 (25.9 percent) stated that substance abuse had precipitated continual job loss and a subsequent inability to pay rent, resuiting In eviction from their homes. Records have also been kept for homeless persons categorized as "dually diagnosed." This refers to persons diagnosed with both a mental illness and a substance abuse problem. In Santa Clara County, there are 476 homeless persons that are dually diagnosed. In Cupertino, the estimated number of such homeless persons is four. Veterans -- There are an estimated two homeless persons in Cupertino who are veterans. In the County, there were 285 homeless veterans. The Countywide Five-Year Plan indicates that the percentage of homeless reporting as veterans has decreased over time. In 1995, 26 percent of the homeless reported they were veterans. In 1999, that proportion decreased to 20 percent. No information Is available explaining this decrease. Based on these figures, veterans now comprise only four percent of the homeless population" City of Cupertino 2006-2009 Consolidated Plan Page 8 Ila-{) Persons Infected with HIV/AIDS -- Within Santa Clara County, 136 homeiess persons reported having HIV/AIDS, which is less than two percent of the total homeless population. In Cupertino, it is estimated there is only one homeless person with HIV/AIDS. Persons Suffering Domestic Violence -- In Santa Clara County, there were 462 homeless persons who were victims of domestic violence, or approximately 6.4 percent of the totai homeiess population. The estimated number of such persons in Cupertino is four. According to the Countywide Five-Year Plan, female respondents to a survey identified fleeing from domestic violence as one of the three primary reasons for their homelessness. Youth -- The Countywide Five-Year Plan states that the fastest growing segment of the homeless population is children. Approximately 25 percent of newly homeless persons in the County were children under 18. Of the estimated homeless population in Cupertino, only one was a youth. In the County, there were 136 homeless youth who were not part of a homeless family. These homeless youth are difficult to track because of their highly transient nature, their distrust of adults, and their distrust of services, usually born out of fear of being incarcerated or institutionalized. Needs of Persons Threatened with Homelessness -- The at-risk population includes individuals who are in imminent danger of residing in shelters or living on the streets" This is primarily due to the lack of access to permanent housing and the absence of an adequate support network, such as immediate family members or relatives in whose homes they could temporarily reside" These individuals, especially those being rei eased from penai, mental or substance abuse faciiities, require sociai services that help them make the transition back into society and remain off the streets. Based on the criteria discussed above and available data, there are probably between 20,000 and 30,000 Santa Clara County households who are at risk of becoming homeiess. Using the share of homeless as determined by the County's HMIS, it is estimated that there are 160 to 240 at-risk households in Cupertino" Housing Needs of Seniors: In 1990, 12% of all households included a member who was 65 years old or older. Of these senior households, 22% were owners and 78% were renters. By 2000, the number of senior households increased to 21 % of all households. Countywide, the senior population is expected to increase by almost 90% between now and 2020, with the population of seniors over the age of 85 years expected to almost double in size. These figures suggest there will be an even greater demand for a range of housing opportunities, such as independent living facilities, assisted housing or congregate care facilities, group homes, and other living arrangements for seniors. Housing Needs of Persons with HIV/AIDS: According to a 2000 study of the gay, lesbian, bisexual and transgendered people, 11 % indicated they needed special HIV care. A 1997 survey of homeless health needs found the number of homeless people with HIV is increasing. Since learning they had HIV/AIDS, 36% of people with AIDS have been homeless. It is estimated that anywhere between 4,000 and 10,000 people in the County are infected with HIV, of which 6% live on the streets or in shelters, while 14% live with friends or in a relative's house. Housing Needs of Persons with Disabilities: The 2000 Census indicates that 3,388 residents of Cupertino age 16 to 64 had a disability. Within that age group, the Census tallied 5,407 disabilities. Of these disabilities, there were 2,353 employment disabilities, defined as disabilities that interfere with a person's ability to work. There were also 168 City of Cupertino 2006~2009 Consolidated Plan Page 9 (( CZ ~I<{ self-care disabilities and 1,453 go-outside-home disabilities.2 The following table shows that 44% of the people with a disability in the under 64 years of age category have an employment disability, while the largest category of disabilities in persons older than 64 have physical disabilities. Total disabilities Cuoertino: 8,470 Disabilities tallied for oeoole 16 to 64 vears: 5,407 Sensorv disability 355 7% Phvsical disability 637 12% Mental disability 441 8% Self-care disabilitv 168 3% Go-outside-home disability 1,453 27% Emnlovment disabilitv 2,353 44% Disabilities tallied for oeoDle 65 vears and over: 2,823 Sensorv disabilitv 556 20% Phvsical disabilitv 962 34% Mental disabilitv 303 11% Self-care disabilitv 280 10% Go-outside-home disabilitv 722 26% From a housing perspective, there are several different housing needs of disabled persons, from those with developmental or mental disabilities, to those with physical disabilities. In Santa Clara County, the average range of SSI payments for 2005 was approximately $700- $900 per month - an amount that is insufficient for securing affordable housing in the region" Lead Based Paint Hazards: In general, any unit built before 1978 may contain lead- based paint (LSP). Estimates based on the pre-1970 housing stock provide a conservative estimate of 656 units occupied by lower income households that may contain LSP. Extremely Extremely Very Low Very Low Low Low Low Low Income Income Income TOTAL Income Income Income TOTAL ----....---...... No. of Units Occupied by Lower Income Households Estimated No. of Units with LBP and Occupied by Lower Income Households Projected Housing Needs: The Association of Say Area Governments' (ASAG) housing need projections represent Cupertino's share of what the State believes the growth will be during the life of the current Housing Element. Cupertino's current share of the housing need is 2,325 new units over approximately seven years. The following table breaks these numbers down by income category. 2Jt should be noted that some people may have more than one type of disability; therefore, the number of disabilities do not necessarily correspond to the number of persons with disabilities. City of Cupertino 2006-2009 Consolidated Plan Page 10 I( t{ -IS- Above Very Low Moderate Moderate Income Low Income Income Income Total 378 188 626 1,133 2,325 In addition, special tabulations of census data show that in 2000: · In general, renter househoids had a higher level of housing problems (42.9 percent) than owner households (29.7%). · Large famiiy households have high levels of housing problems regardless of income level. All extremely low-, very-low and low-income iarge famiiy renter households pay more of 30 percent of gross income for rent. Approximately 91 percent of extremely low-income large family renter households pay over 50 percent of gross income for rent. A significant proportion of large family owner households aiso experienced housing problems, including 93 percent of extremely low- income and 77.8 percent of very low-income owner households. · Small family renter households also experienced significant housing problems. Approximateiy 78 percent of extremely low-income renters and 95 percent of both very iow-income and low-income renters suffered from a housing problem, mainly cost burden. Also, 65.4 percent of extremely low-income owners and 66.7 percent of very low-income owners have housing problems. A detailed table of housing problems can be found on the following page. City of Cupertino 2006-2009 Consolidated Plan Page 11 IrGl-n Housina Problems bv Household Income Name of Jurisdiction: Source of Data: Data Current as of: CUDertino city. California CHAS Data Book 2000 Renters Owners Elderly Elderly 1&2 Large All 1&2 Large All member Small Related Other member Small Related Other Total household Related (50r Households Total household Related (5 or Household Total Household Household by Type, Income, s (2(~)4) m{~~) Renters (~) (2{~\4) m{~re) s o~~~rs s & Housing Problem (A) (0) (Et H) (I) IL' 1. Household Income <=50% MFI 255 487 73 294 1,109 689 264 102 174 1,229 2,338 2. Household Income <=30% MFI 190 274 44 179 687 294 159 57 110 620 1,307 3. % with any housing oroblems 71.1 78.1 100.0 35.8 66.5 54.1 65.4 93.0 81.8 65.5 66.0 4. % Cost Burden >30% 71.1 70.8 100.0 35.8 63.6 50.7 65.4 86,0 81.8 63.2 63.4 5. % Cost Burden >50% 71.1 67.2 90.9 33.5 61.0 44.2 59.1 78.9 63.6 54.7 58.0 6. Household Income >30% to <=50% MFI 65 213 29 115 422 395 105 45 64 609 1,031 7. % with any housing nroblems 69.2 95.3 100"0 100.0 92.9 32.9 66.7 77.8 84.4 47.5 66.1 8. % Cost Burden >30% 69.2 95.3 100.0 100.0 92.9 32.9 66.7 77.8 84.4 47.5 66,1 9. % Cost Burden >50% 69,2 72,3 51.7 78,3 72 20,3 66,7 44.4 60.9 34.3 49.8 10. Household Income >50 to <=80% MFI 60 298 40 113 511 297 285 49 85 716 1,227 11. % with any housing nroblems 58.3 95.3 100.0 86.7 89.4 12,8 59,6 79,6 88.2 45.0 63.5 12.% Cost Burden >30% 58.3 87.2 100.0 86.7 84.7 12.8 59.6 28.6 88,2 41.5 59.5 13. % Cost Burden >50% 58.3 23.5 25.0 35.4 30.3 6,1 38,6 8.2 23.5 21.2 25 14. Household Income >80% M FI 170 2,980 393 1,520 5,063 1.765 5,855 1,075 894 9,589 14,652 15. % with any housing nroblems 50 34.7 40.2 18.4 30.8 16.1 26.5 32.6 25,1 25.1 27.1 16.% Cost Burden >30% 50 15.9 9.7 14.5 16,2 16,1 22,2 23.3 22.9 21"3 19.5 17. % Cost Burden >50% 11,8 0.7 1.0 2.3 1"6 3.7 4.5 2.8 2.2 4.0 3.1 18. Total Households 485 3,765 506 1,927 6,683 2,751 6,404 1,226 1,153 11,534 18,217 19. % with any housing nroblems 61.9 46,1 53.6 28.9 42.9 22.2 29.6 38.9 38.4 29,7 34,5 20. % Cost Burden >30 61.9 30.1 29.8 25.8 31.1 21.9 25.7 28.4 36.8 26.2 28.0 21. % Cost Burden >50 48.5 11.4 13.6 11.7 14,3 10,7 8,4 8.1 12.9 9.4 11,2 City of Cupertino 2006-2009 Consolidated Plan Page 12 - - ~ , - ....) HOUSING MARKET CONDITIONS Housing Units and Type: A substantial portion of Cupertino's housing stock was built after World War II and reflects its suburban, residential character. According to 2000 Census data, there were 18,682 housing units, of which 8 were mobilehomes. From 1990-2000, a total of 2,074 new units were added to Cupertino's housing stock. This represents a production rate of approximately 200 units per year. Jobs-Housing Balance: Using Census data from 2000, there are about 2.12 jobs per every household. This ratio is important because as more jobs are created, there is greater demand on the existing housing stock in the community, which causes increases in housing costs and longer commutes times. Percentage of Total Housing, Housing Type 2000 Sino Ie Familv 71% 2-4 Units 7% Multifamilv (5 or More Units) 22% Housing Tenure: The stability of single-family residential neighborhoods is influenced by tenure, with ownership housing evidencing a much lower turnover rate than rental housing. Approximately 64% of the housing units in Cupertino are owner-occupied, reflecting the greater proportion of single-family housing units in the City. Substandard Units: There is not a significant number of housing units needing repair or replacement in Cupertino; at most, 6% of the units are substandard, or about 1,100 units. However, this figure would be the maximum in need of any kind of rehabilitation, including minor home repairs. Age of Housing Stock: Typically, most homes begin to require major repairs or have significant rehabilitation needs at 30 or 40 years of age. Approximately 48 percent of the City's housing stock was built prior to 1970, indicating the potential need for rehabilitation and continued maintenance for a significant portion of the City's housing. However, the extent which older single-family homes need rehabilitation is largely due to the income of the owner-occupants and their ability to pay for home maintenance and repairs. Given the relatively high incomes of Cupertino residents, the small percentage of lower-income households, and the small percentage of deficient housing units, the housing rehabilitation need is low, at least among owner-occupied homes. Housing Costs: In March 2005, the median sales price for a single-family home in Cupertino was $945,550, an increase of more than 39% since the year before. The average sales price for all types of housing, including condos, was about $923,000 in November 2005. Clearly, typical housing costs in the area far exceed the ability of very- low and low-income households to afford housing. The following table illustrates the difficulty various families of lower income have in finding housing that is affordable to them, comparing different kinds of households and the amount they should pay for housing to afford it, compared with the actual amount. Shaded areas indicate those situations in which the household would be overpaying for housing. City of Cupertino 2006-2009 Consolidated Plan Page 13 If t\ -(I Household of Four on Fixed Income (e.g., SSI of $900fMonth Extremel Low-Income 4 Persons Ve Low-Income 4 Persons Low·lncome 4 Persons Moderate-Income 4 Persons Above Moderate-Income 4 Persons $796 $1,326 $2,123 $3,077 $3,693 Vacancy Rates: Low vacancy rates can mean that a community's housing supply is not adequate enough to meet the needs. According to data published by RealFacts, the vacancy rate for all types of rental housing hit its lowest point in 2000, but has improved since.3 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 5.4% 5.7% 5.0% . 0 " 0 3.8°0 1997 1998 1999 2000 2001 2002 2003 2004 2005 Fair Market Rents: Fair Market Rents (FMRs) are estimates of the rent plus utilities that would be required to rent privately owned, decent, safe, and sanitary rental housing of a modest nature with suitable amenities" The rent figures do not necessarily reflect current asking rents, but rather the upper limits of rents that can be used in the negotiations for Section 8 contracts and other similar rent subsidy programs. They are therefore an important indicator of the housing market in a given area. The following table shows that FMRs for Santa Clara County have increased significantly since 2001. Number of FY 2001 FY 2005 Percent Rooms FMR FMR Change Studio $886 $942 +6.3% 1 BR $998 $1,107 +10.9% 2BR $1,221 $1,313 +7.5% 3BR $1,673 $1,779 +6.3% 3Although this chart shows that in 2005, the vacancy rate had declined significantly, it is important to note that the data represented here includes only larger developments, based on surveys conducted by RealFacts. The actual Citywide vacancy rate at any given time may differ significantly from these amounts, and can only be determined by point-In-time surveys. City of Cupertino 2006-2009 Consolidated Plan Page 14 (( C{ -/9 Public Housing and Section 8: Although there is no conventional public housing in Cupertino, the Housing Authority does maintain a supply of Housing Choice Vouchers for residents in the City. In 2005, there were 82 tenants receiving vouchers, while another five receive assistance through the Moderate Rehab program. The following table provides demographic information on this population. HOUSING CHOICE VOUCHER AND MOD REHAB PROGRAMS: TOTAL PARTICIPANTS = 82 FAMiliES Disabled 11 13% Elderly 18 22% Disabled & Elderly 4 5% Non-Disabled/Non-Elderly 49 60% ETHNICITY Hispanic 18 22% Non-Hispanic 64 78% RACE Caucasian 37 45% African American 11 13% American Indian/Alaskan Native 1 1% Asian 33 40% Hawaiian/Pacific Islander 0 0% Loss of Affordable Units: The only affordable housing development technically at risk of converting to market rate is the Sunnyview development, whose federal subsidy contract expired in May 31,2004. However, the development is considered at low risk for converting because it is owned by a non-profit organization, which renewed its assistance in 2004. At the present time, the owner has no intention of turning the project into a market rate development... Fair Housing: The City places a high priority on promoting and ensuring open and free choice in housing for all persons. It is the City's intent to maintain a nondiscriminatory environment in all aspects of the public and private housing market within the City, and to foster compliance with the nondiscrimination provisions of the Fair Housing Act. In May 2004, the City completed its first Analysis of Impediments to Fair Housing Choice, incorporated here by reference. Although that study did not discern widespread discrimination, it did note that there are areas of concern that the City should investigate further over time. Some of the findings included: · Elderly and large family renters tend to have greater housing problems than other types of residents, tending to pay more of their income for housing. · Minority households, including Black, Asian and Hispanic househoids, tend to have greater housing problems than do their White counterparts" · As is true for most Bay Area communities, Cupertino is an expensive housing market. The cost to live here can be a significant impediment to a wide variety of households. City of Cupertino 2006-2009 Consolidated Plan Page 15 It q -,z(J · Lending institutions working in Cupertino approved conventional loans at a rate of 80% with oniy 9% of applications were specifically denied, a rate that is higher than the average for the South Bay as a whole" · Data on loan approvals by Census tract indicate that tract 5080.02 - which had the highest percentage of minority population and the lowest median income in 1990 - also had the largest concentration of non-occupant loan applications for one- to four-family dwellings" In addition, the approval rates for both conventional loans and refinancings were lower than the City as a whole, and denials were higher than average. Another tract - 5081.02 - also experienced approval rates less than the Citywide averages and higher than average denials. · Some banks approved a greater percentage of loan applications than other banks in Cupertino, For example, while the overall conventional loan origination rate for Cupertino was about 70% for the period 2000-2002, Downey Savings only approved 54% of conventional loan applications. Downey Savings also had a much higher than expected denial rate. · People from ali over the United States are losing their homes and their investments because of predatory lenders, appraisers, mortgage brokers and home improvement contractors. For example, a 2002 study found that affluent Hispanic borrowers in Santa Clara County were 34% more likeiy to receive subprime refinance loans than Whites. However, insufficient tools exist to determine more effectively how prominent the problem might be in Cupertino. · During the period 1997-2003, a total of 60 housing discrimination complaints were made in Cupertino; 47% of these complaints were based on whether the complainant had children, while 17% believed they were being discriminated against because of their national origin. Of the resuiting 27 formal cases filed, 37% were successfully conciliated, while another 15% were counseled. Only one case was referred to a State or federal agency; the status of this case is currently unknown. Inventory of Facilities and Services for the Homeless, Persons Threatened with Homelessness, and Those with Special Needs: The Continuum of Care Plan, the Homeless Census and Survey, and the five-year Countywide Consolidated Plan data all provide important information on the services, facilities and programs available to homeless people, at-risk families and individuals, as well as those with special needs. These include shelters, transitional housing programs, senior day care and support programs, domestic violence programs, and a host of other activities to serve people with needs. The following table provides a listing of facilities within Cupertino to serve the needs of the homeless. Emergency shelters provide temporary shelter for homeless individuals and families. Transitional housing provides shelter for families making a transition from homelessness to permanent housing. This list is based on the geo-coding of the countywide inventory contained in the County's 2004 Continuum of Care application to HUD. Organization/Agency Facility Address Total Beds Emergency Shelters Cupertino Community Services I Rotating Shelter I 10104 Vista Dr. I 15 Transitional Housing Cupertino Community Services I Transitional I 10104 Vista Dr. I 22 City of Cupertino 2006-2009 Consolidated Plan Page 16 /10...-21 In addition, an overview of licensed community care facilities in Cupertino that serve some of the special needs groups is provided in the following table, which shows that there are 10 licensed community care facilities are located in Cupertino, with a total capacity of 274 beds. Many of these facilities provide residential care to those with mental or developmental disabilities. Total Capacity Capacity by Type of Disability Total Number (beds or Type of Facility of Facilities persons) Mental Developmental Group Home 2 12 0 0 Adult Residential 2 12 0 0 Elderly Residential 5 220 0 0 Adult Day care 1 30 0 0 Total 10 274 0 0 Notes: 1. The specialized care columns are not mutually exclusive. For example, a facility may have a total capacity of 10 beds, with 8 beds for developmentally disabled children and 4 of the 10 beds are designed to accommodate non-ambulatory children. 2. Group homes provide specialized treatment for persons under age 18. 3. Small family homes provide care to children in licensees' own homes. Small family residents are usually children on probation, developmentally disabled children, children with other special needs, and some foster children. 4, Adult residential facilities provide care for persons age 18 to 59 years including both developmentally disabled adults and persons suffering from mental iJlness or psychiatric disorders. 5, Elderlv residential facilities Drovide care for oersons aae 60 and above. The following table illustrates the City's assisted multi-family housing stock that were created by various government assistance programs. In addition, the City has 35 Below Market Rate (BMR) for-sale units scattered throughout the City, available to moderate-income households. Number of Household Income Affordable Very Low or Development Name and Address Tenure Units Low Moderate Affordable Develovments Sunnyview West Rental 100 100 0 22449 Cunertino Road Stevens Creek Village Rental 40 40 0 19140 Stevens Creek Blvd. LeBeaulieu Apartments Rental 27 27 0 10092 Bianchi Wav CCS Transitional Housing Rental 4 4 0 10311-10321 Greenwood Ct. Park Circle East Rental 8 8 0 20851-20653 Park Circle East Beardon Drive Rental 8 8 0 10192-10194 Beardon Drive Total 187 187 . 0 BMR Rental Units City Center Apartments Rental 4 4 0 20380 Stevens Creek Blvd" The Hamptons Rental 34 34 0 19500 Pruneridoe Ave" Arioso Apartments Rental 20 20 0 19608 Pruneridoe Ave" Forge-Homestead Apts. Rental 15 15 0 20691 Forne Wav Aviare Apartments Rental 22 22 0 20415"Via Paviso City of Cupertino 2006-2009 Consolidated Plan Page 17 (( 0... -,¿L Chateau Cupertino Rental 10 10 0 10150 Torre Avenue Total 105 105 0 GrouD Homes Adult Toward Independent Living Rental 8 persons Group Home Group 19147 Anne Lane Home Pacific Autism Center for Education Rental 12 persons Group Homes Group total 19681 Drake Drive Home 7576 Kirwin Lane Simms House Group 5 households Home Barriers to Affordable Housing: The Housing Element provides detailed information on constraints - both governmental and nongovernmental - to the production, preservation and rehabilitation of housing, especially that which is affordable, and are incorporated here by reference. The Housing Element examines local ordinances and policies to determine whether, under current conditions, they are accomplishing their intended purpose or, in practice, constitute a barrier to the maintenance, improvement or development of housing for all income levels. Some of the areas reviewed included land use controls, local fees and exactions, processing standards, and similar activities. Nongovernmental constraints include a variety of factors that negatively impact "the maintenance, improvement, or development of housing for all income levels, including the availability of financing, the price of land, and the cost of construction." The potential list of all constraints on the development could be quite long, and might include information on national economic conditions and regional geology. However, the Housing Element focuses on non-governmental constraints that the City may be able to positively impact. The City of Cupertino has identified potential governmental and non-governmental constraints to affordable housing development. Governmental constraints include the' following: · Insufficient land zoned for residential land uses" · Insufficient land designated for higher-density residential uses. · Requirements for development of second units. · Restrictive definition of "affordable unif' in City's density bonus program. Non-governmental constraints include the following: · High cost of housing, including rental units. · Lack of available rental units. · Hilis and mountains in western area of City. · Potential seismic and geologic hazards, particularly in western portion · Potential areas of hazardous material contamination. The City has defined several actions to either eliminate or otherwise mitigate the effect of these constraints on the housing market. Relevant actions are discussed in the Five- Year Strategy. City of Cupertino 2006-2009 Consolidated Plan Page 18 It t{ -~3 FOUR-YEAR STRATEGY Priority Analysis and Strategy Development: The housing needs data indicate that some households have a difficult time paying for housing, or have a variety of housing problems, such as overcrowding. Other statistics point to the need for services, such as supportive housing, assistance with jobs, or mental health concerns. The City reviewed the existing housing and homeless needs statistics to determine what, if any, changes should be made to its priorities for funding. The City was guided in its decision-making process by its first Con Plan, which identified the greatest need for activities directed at very low-income, small family and large family renters and low- income, large family renters. For this Consolidated Plan, the City has developed its priority system for assistance based on the following three tables. The first shows that of all households with some type of housing problem,4 lower-income small renter households (from 0% to 80% of median) account for the largest share of all households with housing problems - more than 38% of all households with problems, an increase from 1990 of about 8%. Number with Income in Any Housing %of Tenure Type 1999 Problem Total Renters Small HHs LI 284 15.5% Renters Small HHs ELI 214 11.7% Renters Small HHs VLI 203 11.1% Owners Small HHs LI 170 9.3% Owners Senior HHs ELI 159 8.7% Renters Senior HHs ELI 135 7.4% Owners Senior HHs VLl 130 7.1% Owners Small HHs ELI 104 5.7% Owners Small HHs VLI 70 3.8% Owners Laroe HHs ELI 53 2.9% Renters Senior HHs VLI 45 2.5% Renters Lame HHs ELI 44 2.4% Renters Laroe HHs LI 40 2.2% Owners Lam. HHs LI 39 2.1% Owners Senior HHs LI 38 2.1% Owners Lame HHs VLI 35 1.9% Renters Senior HHs LI 35 1.9% Renters Larne HHs VLI 29 1.6% TOTAL 1,827 4Defined as a household having at least one of the following conditions: lacking complete plumbing facilities, lacking complete kitchen facilities, with more than 1.01 persons per room (overcrowded), and selected monthly owner or renter housing costs greater than 30% of income. City of Cupertino 2006-2009 Consolidated Plan Page 19 ({a.-¿L{ The second table, sorted on households that have a cost burden of more than 30% of income, shows that while the largest percentage of households that have this problem are small renter households, some small owner households and senior households have cost burden issues. Surprisingly, large lower income households represent a relatively small percentage of households with cost burdens, but this can be partly explained by the fact that there are not a great deal of large households of any income in Cupertino. The last table, which shows the number of households paying over 50% of income on housing costs, confirms that lower-income renters tend to have a more difficult time with cost burden than owners. In addition, very low-income senior households - both renters and owners - are cost burdened. Interestingly, large households do not have the problem of overpayment that small households tend to have. Based on the analyses shown above, and in conjunction with the needs assessment, HUD Table 2a: Listing of Priority Needs shows the rankings of the various need categories by priority, based on available data. Using uncapped income Iimits,5 the Number with Cost Income in Burden Tenure Type 1999 >30% % of Total Renters Small HHs LI 260 14.9% Renters Small HHs VLl 203 11.6% Renters Small HHs ELI 194 11.1% Owners Small HHs LI 170 9.7% Owners Senior HHs ELI 149 8.5% Renters Senior HHs ELI 135 7.7% Owners Senior HHs VLl 130 7.5% Owners Small HHs ELI 104 6.0% Owners Small HHs VLI 70 4.0% Owners Lar;:;-e HHs ELI 49 2.8% Renters Senior HHs VLI 45 2.6% Renters Lar;:;-e HHs ELI 44 2.5% Renters Larn-e HHs LI 40 2.3% Owners Senior HHs LI 38 2.2% Owners Larne HHs VLI 35 2.0% Renters Senior HHs LI 35 2.0% Renters Larae HHs VLI 29 1.7% Owners Larne HHs LI 14 0.8% TOTAL 1,744 Number with Cost Income Burden %of Tenure Type in 1999 >50% Total Renters Small HHs ELI 184 14.6% Renters Small HHs VLI 154 12.2% Renters Senior HHs ELI 135 10.7% Owners Senior HHs ELI 130 10.3% Owners Small HHs LI 110 8.7% OWners Small HHs ELI 94 7.5% OWners Senior HHs VLl 80 6.4% Renters Small HHs LI 70 5.6% Owners Small HHs VLI 70 5.6% Owners Larne HHs ELI 45 3.6% Renters Senior HHs VLI 45 3.6% Renters Larne HHs ELI 40 3.2% Renters Senior HHs LI 35 2.8% Owners Larne HHs VLI 20 1.6% Owners Senior HHs LI 18 1.4% Renters Larne HHs VLI 15 1.2% Renters Lame HHs LI 10 0.8% Owners Larne HHs LI 4 0.3% TOTAL 1,259 5Normal1y, the definition of lower-income includes household incomes not exceeding 80% of median income. However, because of the relatively high median income levels in high cost areas of the country, including the Bay Area, the federal government requires certain jurisdictions to use a "capped" limit for low-income, usually at 70-78% of median. These capped income limits must be used in determining program eligibility for a wide range of housing programs available to lower-income households. However, the Quality Housing and Work Responsibility Act of 1998 allows HUD to grant exceptions to jurisdictions in using the full 80% of median as the limit for low-income. The City has determined thát, in an effort to serve the broadest range of City of Cupertino 2006-2009 Consolidated Plan Page 20 ;Ia.-l) City intends to be guided by this priority system in allocating its resources; however, insufficient funding, competing priorities, and staffing capacity may preclude following the priority system at all times. Further, it must be stressed that although a particular type of housing or service may not receive the highest priority, the City will still consider such applications for funding because the need for all types of assistance to lower- income families and individuals is great. HOUSING ELEMENT GOALS AND OBJECTIVES The City has established several goals, policies and implementation plans towards addressing the housing and community development related needs of its citizens. Based primarily on the Housing Element, these goals and polices include the following: GOAL A AN ADEQUATE SUPPLY OF RESIDENTIAL UNITS FOR ALL ECONOMIC SEGMENTS Four-Year Objective: Suitable Living Environment Sustainability Provide opportunities for suitable living environments with improved/new sustainability 1. new housing units available to various income groups 2. overall increase in housing stock 3. number of parcels with changed land use designations 4. number of second units created 1. 1,320 new housing units 2" 20 new second units 1. 330 new housing units 2. 5 new second units Objective: Outcome: Outcome Statement: Indicators: One=Year Goal: The City's Housing Element, last updated in 2001 identifies the following policy to address this goal: Policy 3-1: Sufficient Residentially Zoned Land for New.Construction Need. Designate sufficient residentially zoned land at appropriate densities to provide adequate sites that will meet and exceed ABAG's estimate of Cupertino's new construction need of 2,325 units for 2001-2006. ,Units Affordable to Very Low Income: Units Affordable to Low Income: Units Affordable to Moderate Income: Units Affordable to Above Moderate Income: 2001-2006 TOTAL 378 units 188 units 626 units 1,133 units 2,325 Units Key implementing actions include the following: lower-income persons and families, it will aJlow grantees to use the uncapped, 80% income limit for low income, thereby allowing more families who are low-income to be potential participants in the City's CDBG program activities. City of Cupertino 2006-2009 Consolidated Plan Page 21 (r Q ~ ).(p Implementation Proqram 1: Housinq Units by Planninq District. Encourage residential development in Planning districts. Residential development in these planning districts includes mixed-use, multi-unit residential, and single-family residential. Implementation Proqram 2: Land Use Desiqnations. In order to allow for the number of units as identified in Program #1 (Housing Units by Planning Districts), some parcels of land in the specified Planning Districts will need a change in land use designation or zoning. The City will change land use designations/zoning to reflect the density ranges necessary to implement Program 1. Implementation Proqram 3: Residential Potential Outside of Planninq Districts. Include the existing inventory of residentially zoned parcels with residential potential that are outside of the planning districts in addressing the Regional Housing Need" Implementation Proqram 4: Second Dwellinq Unit Ordinance. Assure that the Second Dwelling Unit Ordinance encourages the production of more second units on residential parcels. GOAL B HOUSING THAT IS AFFORDABLE FOR A DIVERSITY OF CUPERTINO HOUSEHOLDS Objective: Outcome: Outcome Statement: Indicators: Four-Year Objective: One-Year Goal: Decent Housing Affordability Provide opportunities for decent housing with improved/new affordability 1. maximized housing mitigation fees 2. increased households participating in BMR programs 3" increased number of affordable units 4. improved jobs/housing balance 5" improved housing stock 45 ELI units through housing mitigation plan 150 VLI units through housing mitigation plan 105 LI units through housing mitigation plan 24 VLI units through affordable housing fund 24 LI units through affordable housing fund 4-8 MCCs 11 ELI units through housing mitigation plan 38 VLI units through housing mitigation plan 26 LI units through housing mitigation plan 6 VLI units through affordable housing fund 6 LI units through affordable housing fund 1-2 MCCs The City's Housing Element identifies the following policies to address this goal: Policy 3-2: Housing Mitigation Plan. Assign priority to households who live or work in Cupertino for BMR units produced through the plan or affordable housing units built with mitigation fees. Policy 3-3: Range of Housing Types. Encourage the development of diverse housing stock that provides a range of housing types City of Cuperuno 2006-2009 Consoiidated Plan Page 22 ((0..-1.7 (including smaller, moderate cost housing) and affordable levels. Emphasize the provision of housing for lower and moderate-income households and, also, households with wage earners who provide service (e.g. school district employees, municipal and public safety employees, etc.) Policy 3-4: Housing Rehabilitation. Pursue and/or provide funding for the construction or rehabilitation of housing that is affordable to very low, low and moderate-income households. Actively support and assist non-profit and for profit developers in producing affordable units. Policy 3-5: Development of Affordable Housing. Maintain and/or adopt appropriate land use regulations and other development tools to encourage the development of affordable housing. Make every reasonable effort to disperse units throughout the community but not at the expense of undermining the fundamental goal of providing affordable units. Policy 3-6: Tax Increment Funds. Use a minimum of 25% of tax increment funds generated from the Redevelopment Project Area for housing activities that create affordable housing for lower and moderate-income households. Set aside 5% of the 25% for extremely low-income housing. Policy 3-7: Housing Densities. Provide a full range of ownership and rental housing unit densities, including apartments and other high-density housing. Key implementing actions include the following: Implementation Proqram 5: Housinq Mitiqation Plan - Office and Industrial Mitiqation" The City will continue to implement the "Office and Industrial Mitigation" fee program. This program requires that developers of office and industrial space pay a fee, which will then be used to support affordable housing for families who work in Cupertino but live elsewhere. These fees are collected and then deposited in the City's Affordable Housing Fund. The City will conduct an updated "nexus' study to determine whether the manner in which fees are calculated is still appropriate. Implementation Proqram 6: Housinq Mitiqation Plan: Residential Mitiqation. The City will continue to implement the "Housing Mitigation" program. This program applies to all new residential development of one unit or grater. Mitigation includes either the payment of an in-lieu fee or the provision of a Below Market Rate (BMR) unit or units. Projects of 10 or more units must provide on-site BMR units. Projects of 6 units or less can either build a unit or paying-lieu fee. Implementation of the program shall include: City of Cupertino 2006-2009 Consoiidated Plan Page 23 I(~-J.! a) priority for occupancy to households who reside, work, attend school or have family in Cupertino; b) additional priority for households with wage earners who provide a public service; specifically, employees of the City, iocal school district and public safety agencies; c) utilize City's Affordable Rent Schedule as a guideline in setting rents for new affordable housing; d) update the rent schedule each year as new income guidelines are received and determine a uniform method for allowing rent adjustments for affordabie housing; e) allow developers to meet all or a portion of their BMR requirement by making land avaiiable for the City or a non-profit housing developer to construct affordabie housing; f) require BMR units to remain affordable for a minimum of 99 years; g) enforce the City's first right of refusal for BMR units, and require 15% BMR units Implementation Proqram 7: Affordable Housinq Fund. The City's Affordable Housing Fund provides financial assistance to affordable housing developments. "Requests for Proposals" (RFPs) will be solicited from interested parties to develop affordable units with housing funds. Affordable housing funds will be expended in the following manner (ranked in order of priority): a) Finance affordable housing projects in Cupertino. b) Establish a down payment assistance plan that may be used in conjunction with the BMR program or to make market rate units more affordable. The assistance should be in the form of low interest loans and not grants. c) Establish a rental subsidy program to make market rate units more affordable. Implementation Proqram 8: Mortqaqe Credit Certificate Proqram" Participate in the countywide Mortgage Credit Certificate (MCC) Program. This program allocates mortgage credit certificates to first-time home buyers to purchase housing. Due to the high cost of housing units in Cupertino, it is estimated that most of the County's MCCs will be used in the City of San Jose, where there are more low cost housing units available for sale. Implementation Proqram 9: Move-In for Less Proqram. Recognizing 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. Implementation Proqram 10: Surplus Property for Housinq. In conjunction with local public agencies, school districts and churches, the City will develop a list of surplus property or underutilized property that have the potential for residential development, compatible with surrounding densities. Additionally, long-term land leases of property from churches, school districts corporations for construction of affordable units shall be encouraged. Further, the feasibility of developing special housing for teachers or other employee groups on the surplus properties will be evaluated. Teacher-assisted housing programs in neighboring districts, such as Santa Clara United School district, will be reviewed for applicability in Cupertino. Implementation Proqram 11: Affordable Housinq Information and Support. The City will provide information, resources and support to developers who can produce affordable City of Cupertino 2006-2009 Consolidated Plan Page 24 ((a.-ZD¡ housing. Information will be updated on a regular basis in regard to available funding sources and be distributed to all interested developers. In addition, information regarding additional City incentives such as the Density Bonus Program (see program #14) will also be provided and updated on a regular basis. Further, the City will involve the public from the beginning of an affordable housing application so that there are fewer objections to the project as it goes though the City approval process. Implementation Proqram 12: Densitv Bonus Proqram. The City's Density Bonus Program provides for a density bonus and additional concessions for development of 6 or more units that provide affordable housing for families and seniors. Included in the concessions are reduced parking standards, reduced open space requirements, reduced setback requirements, and approval of mixed use zoning. The City will change the Ordinance definition of affordable unit to housing costs affordable at 30% of household income for very low and low-income households. Implementation Proqram 13: Requlatory I ncentives. The City will continue to waive park dedication and construction tax fees for all affordable units. Parking standards will also be discounted for affordable developments. For mixed-use and higher density residential developments, the Planning Commission or City Council may approve deviations from the Parking Regulation Ordinance of the Cupertino Municipal Code, if the applicant can provide a study supporting the deviation. Further, the City will continue to efficiently process all development applications. Implementation Proqram 14: Residential and Mixed Use Opportunities In or Near Emplovment Centers. The City will encourage mixed-use development and the use of shared parking facilities in or near employment centers. In addition to the development opportunities available through the "Heart of the City" Specific Plan, the City will evaluate the possibility of allowing residential development above existing parking areas. In specific, these areas would be near or adjacent to employment centers and could provide additional opportunities for housing. Implementation Proqram 15: Redevelopment Housinq Set Aside Fund. The City has established a Redevelopment Project Area, from which tax increments funds are collected. A minimum of 25% of tax increment funds will be directed to low and moderate-income households, 5% of which are directed to extremely-low income households" The Redevelopment Agency will develop policies and objectives for the use of those funds. All policies and objectives shall be developed to reflect the goals and objectives of the Housing Element. Implementation Proqram 16: Flexible Residential Standards. Allow flexible residential development standards in planned residential zoning districts, such as smaller lot sizes, lot widths, floor area ratios and setbacks, particularly for higher density and attached housing developments. City of Cupertino 2006-2009 Consolidated Plan Page 25 1\ Q. - 30 GOAL C , ENHANCED RESIDENTIAL NEIGHBORHOODS Objective: Outcome: Outcome Statement: Indicators: Four-Year Objective: One-Year Goal: Decent Housing Availability/Accessibility Create decent housing with improved/new availability 1. number of households assisted with rehab 2. number of disabled households with improved accessibility 3. number of units that have been weatherized 4. number of new acquisition/rehab units 5. number of at-risk units preserved 6. number of community Clean-up campaigns completed 1" 20 units rehabbed 2. 12-20 disabled households with improved accessibility 3" 12-20 weatherized units 4. 100 units preserved 1 . 5 units rehabbed 2. 3-5 disabled households with improved accessibility 3. 3-5 weatherized units The City's Housing Element identifies the following policies to address this goal: Policy 3-8: Maintenance and Repair. Assist very low and low-income homeowners and rental property owners in maintaining and repairing their housing units. Policy 3-9: Conservation of Housing Stock. Conserve the existing stock of owner and rental housing units, which provide affordable housing opportunities for lower and moderate- income households Policy 3-10: Energy Conservation. Encourage energy conservation in all existing and new residential development. Key implementing actions include the following: Implementation Proqram 17: Housinq Rehabilitation. This program provides financial assistance to eligible very low and low-income homeowners to rehabilitate their housing units. Implementation Proqram 18: Home Access Proqram. The Home Access Program provides assistance with minor home repairs and accessibility improvements for lower- income, disabled households. Implementation Proqram 19: Weatherization Proqram. This program assists very low- income homeowners with weatherization improvements to their homes. Implementation Proqram 20: Apartment Acquisition and Rehabilitation. The County of Santa Clara administers Home funds on behalf of the members of the Urban County City of Cupertino 2006-2009 Consolidated Plan Page 26 II fÀ- - 3 ( and HOME Consortium. The City of Cupertino participates in both the Urban County and Consortium activities. Additionally, CDBG funds are directly available to the City of Cupertino as an entitlement jurisdiction. Funds are available on a competitive basis to developers to acquire and rehabilitate rental units for very low and low-income households. Implementation Proqram 21: Preservation of "At Risk Units". The only affordable housing development technically at risk of converting to market rate is the Sunnyview development, whose federal subsidy contract expired in May 31,2004. However, the development is considered at low risk for converting because it is owned by a non-profit organization, which renewed its assistance in 2004. At the present time, the owner has no intention of turning the project into a market rate development. Implementation Proqram 22: Condominium Conversions. The City's existing Condominium Conversion Ordinance regulates the conversion of rental units in multi- family housing development in order to preserve the rental housing stock. Condominium conversions are not allowed if the rental vacancy rate in Cupertino is less than 5% at the time of the application for conversion and has averaged 5% over the past six months. Implementation Proqram 23: Rental Housinq Preservation Proqram. The City's existing multi-family rental units provide housing opportunities for households of varied income levels. The City will develop and adopt a program that includes the following guidelines. When a proposed development or redevelopment of a site would cause a loss of multi- family rental housing, the City will grant approval only if at least two of the following three circumstances exist: The project will produce at least a 100% increase in the number of units currently on the site and will comply with the City's BMR Program, and/or The number of rental units to be provided on the site is at least equal to the number of existing renal units, and/or No iess than 20% of the units will comply with the City's BMR Program. Further, the preservation program will include a requirement for a tenant relocation plan with provisions for relocation of tenants on site as much as possible. Implementation Proqram 24: Conservation and Maintenance of Affordable Housinq. Develop a program to encourage the maintenance and rehabilitation of residential structures to preserve the older, more affordable housing stock. Implementation Proqram 25: Neiqhborhood and Community Cleanup Campaiqns. Continue to encourage and sponsor neighborhood and community clean up campaigns for both public and private properties. Implementation Proqram 26: Enerqy Conservation Opportunities. The City will continue to enforce Title 24 requirements for energy conservation and will evaluate utilizing some of the other suggestions as identified in the Environmental Resources/Sustainability element. City of Cupertino 2006-2009 Consolidated Plan Page 27 f( ~-3L Implementation Proqram 27: Fee Waivers or Reduction for Enerqy Conservation. The City will evaluate and implement the potential to waive or reduce fees for energy conservation improvements to residential units (existing or new). GOAL D SERVICES FOR SPECIAL NEEDS HOUSEHOLDS Objective: Outcome: Outcome Statement: Indicators: Four-Year Objectives: Suitable Living Environment Availability/Accessibility Provide a suitable iiving environment with improved/new availability 1. number of persons assisted with homeless services 2. number of persons provided with senior housing services 3. number of shared housing situations arranged 1. 48-56 persons served in rotating shelter 2. 20-40 seniors placed in housing 1 . 12-14 persons served in rotating shelter 2. 5-10 seniors placed in housing One-Year Goal: The City's Housing Element identifies the following policies to address this goal: Policy 3-11: Special Needs Households. Support organizations that provide services to special need households in the City: such as homeless, elderly, disabled and single parent. Key implementing actions include the following: Implementation Proqram 28: Cupertino Community Services (Homeless Services). Cupertino Community Services (CCS) manages transitional housing and administers the "Continuum of Care" services for homeless, including the rotating shelter program. In order to facilitate any future emergency shelter needs, the City will revise the Zoning Ordinance to allow permanent emergency shelter facilities in "BO" quasi-public zones and will promote and encourage the location of permanent shelters in SO zones" Implementation Proqram 20: Proiect MATCH (Senior Shared Housinq). Project MATCH places seniors in housing arrangement with other persons interested in shared housing. Project MATCH is funded with County of Santa Clara Urban County funds. Implementation Proqram 30: Catholic Social Services (Sinqle Parents). Catholic Social Services provides help to place single parents in shared housing situations. The program is funded with Santa Clara County Urban County funds. City of Cupertino 2006-2009 Consolidated Plan Page 28 rr iÀ. -]J GOAL E EQUAL ACCESS TO HOUSING OPPORTUNITIES· Four-Year Objectives: One-Year Goal: Suitable Living Environment Availability/Accessibility Provide a suitable living environment with improved/new availability 1 . number of outreach activities 2. number of households with resolved fair housing disputes 1. 44 discrimination cases resolved 1. 11 discrimination cases resolved Objective: Outcome: Outcome Statement: Indicators: The City's Housing Element identifies the following policies to address this goal: Policy 3-12: Housing Discrimination. Support programs and organizations that seek to eliminate housing discrimination. Key implementing actions include the following: Implementation Proqram 31: Santa Clara County Fair Housinq Consortium. The Santa Clara County Fair Housing Consortium includes the Asian Law Alliance, Mid-Peninsula Citizens for Fair Housing, Project Sentinel and the Mental Health Advocates Program. These organizations provide resources for Cupertino residents with tenant/landlord rental mediation, housing discrimination and fair housing concerns. Administrative funding for these organizations is partially contributed by County of Santa Clara Urban County Funds. One significant effort, undertaken as a joint venture, by the CDBG Coordinators within the County has been the initiation of a Santa Clara Countywide Fair Housing Task Force" In 2004, the Task Force reviewed various impediments identified as barriers to fair housing choice, that impact the County as a whole, and that when resolved will benefit the County and each participating city. The following is a list of the identified impediments and planned actions to combat those impediments, which the City of Cupertino supports as part of this Consolidated Plan: GOAL A - Establish a Fair Housinq Collaborative Task Force Obiective 1 - Establish structure and mission of Task Force Obiective 2 - Establish priorities and proactive aoals aimed at reducina fair housina problems Obiective 3 - Identifv resources and provide assistance to the non-profit fair housina service providers for enhanced performance. Obiective 4 - Issue an annual report profilina the nature and extent of fair housina in Santa Clara County" City of Cupertino 2006-2009 Consolidated Plan Page 29 (( fÆ - JL{ understanding of predatory lending in Santa Clara County by inviting the various participants to exchange information and toshare resources. In addition, the City will actively pursue efforts to affirmatively further fair housing, including taking appropriate actions to overcome the effects of any impediments identified through the analysis, and maintaining records reflecting the analysis and actions take in this regard. OTHER GOALS AND OBJECTIVES In addition to the goals and objectives of the Housing Element, the City also addresses a variety of other housing and community development needs with a broad range of services and activities. Home/essness Regional Continuum of Care: Although the precise number of homeless individuals and families in Cupertino is not known, the 2004 Homeless Census and Survey showed that there were 71 unsheltered homeless counted and 30 sheltered homeless, for a total of 101 homeless persons on any given night. The City has provided funding in the past for homeless services and a rotating shelter, and will continue to do so (see implementation plans, above, as well as one-year action planning, following). In addition, several agencies that the City has funded provide assistance to at-risk populations by providing hotel/motel assistance, rental/mortgage assistance, utilities assistance, transportation, and food and clothing. There are also a number of transitional beds available within Cupertino. Because homelessness is difficult to quantify, as homeless individuals and families move from place to place, a regional Continuum of Care Plan was established to coordinate services, maximize funding, and marshal the collective will of many jurisdictions towards addressing the needs. Cupertino has participated in the Continuum of Care and will remain an active partner in this endeavor. Other Reqional Strateqies to Address Homelessness: The Santa Clara County Collaborative on Housing and Homeless Issues was created in the mid-1990s to draw more funding for homeless shelters, services, and to create more affordable housing. The Collaborative includes over 120 shelter providers, service providers, advocates, and nonprofit housing developers, united to find ways to increasing housing and service opportunities for homeless people. The Collaborative continues to promote the Continuum of Care as the format to end homelessness in Santa Clara County. In promoting the Continuum, the Collaborative has addressed outreach, emergency shelter, transitional housing, training and employment, supportive housing, and permanent affordable housing. City of Cupertino 2006-2009 Consolidated Plan Page 31 (( 0.. - 3( GOAL B - Provide Enhanced Education and Outreach: The Task Force will provide direction and support to the non-profit fair housing service providers to increase public awareness of and support for fair housing laws; to inform housing seekers of their rights and remedies; and to publicize the availability of the fair housing services, on a coordinated county-wide basis. These efforts are essential to gain public support for fair housing and to provide housing seekers with necessary information about their rights and the services available to them if they are the victims of discrimination. Certain population groups require additional efforts because linguistic, cultural, physical, mental and economic barriers segregate these groups from the mainstream and they often are unaware of their rights. Obiective 1-Educational Presentations: Hold meetings and make educationai presentations to resident and community-based organizations, such as community centers, social services and health care providers, schools and senior centers, with targeted focus being to reach new immigrant populations. Coordinated efforts will be made in April, to recognize National Fair Housing Month" Obiective 2-Materials Distribution: Identify existing resources and what needs to be developed to provide for the distribution of muiti-lingual fair housing educational material on a coordinated countywide basis. Obiective 3-Media and Public Relations: Develop newspaper stories about specific fair housing issues and the availability of fair housing services. Provide guidance and support to the non-profit fair housing service providers for the effective use of media and public relations resources throughout the county: local newspapers and city-sponsored newsletters, public service announcements, cable television, phone book listings, public displays. Obiective 4: Seek opportunities to train groups of owners, managers and reaitors. To increase understanding of fair housing laws and appropriate rental and sales practices by housing providers to enhance compliance with the law. Obiective 5: Seek opportunities to educate appropriate city and county officials and staff. GOALC - Support and Strenqthen Enforcement Services: Enforcement services include the investigation of bona fide complaints, audits and seeking resolution on behalf of victims and the community. Obiective 1: Clarify and coordinate services between the various direct service providers. Develop and maintain a countywide reporting format that will accurately and easily describe services requested and services provided" A common reporting format, with reporting terminology used countywide, will be used to develop fair housing enforcement profiies in Santa Clara County. Obiective 2: Encourage and support fair housing audits to refiect the unreported nature of fair housing violations. Assist with the useful application of audit results. Audits have been conducted in Santa Clara County showing a significant rate of vioiations involving people with disabilities and in need of service animals. The audits resuited in stronger enforcement actions and the development of issue specific literature. Obiective 3: Develop an understanding of the nature and extent of predatory lending in Santa Clara County. Provide guidance and support to direct service providers so they can secure the necessary resources to combat this impediment. Provide a forum for developing a greater City of Cupertino 2006-2009 Consolidated Plan Page 30 ({ t1 -)10 Objectives: Outcomes: Suitable Living Environment A vailabil ity/ Accessibility Sustainability Provide a suitable living environment through availability/ accessibility and sustainability 1" number of homeless persons housed in emergency shelter 2. number of homeless persons assisted with services 460 homeless persons provided with shelter and services 105 homeless persons provided with shelter and services Indicators: Outcome Statement: Four-Year Objective: One-Year Goal: Others with Special Needs: Because the needs of persons with special needs often extends beyond the provision of housing alone, the City will continue to seek ways to assist this varied population. Seniors continue to be a priority for the City, as well as persons with disabilities. The City additionally supports efforts to: .:. Deveiop additional rental housing for very low-income households. .:. Expand shared housing matching programs to focus on assisting persons with special needs. .:. Expand federal and State programs to meet the housing needs of persons with special needs. .:. Make the Section 8 program more successful for persons with special needs. .:. Increase the awareness of the housing and service needs of persons with special needs. .:. Promote cooperation and sharing of housing information among the various groups and organizations working with persons with special needs. .:. Encourage projects that provide linked services and services on-site" Objectives: Outcomes: Suitable Living Environment Availability/Accessibility Sustainability Outcome Statement: Provide a suitabie living environment through availability/ accessibility and sustainability 1. number of seniors/disabled receiving day care assistance 2. number of transportation trips for seniors/disabled 3"number of senior/disabied persons assisted with legal help 4.number of senior/disabled persons assisted with food and other assistance 5. number of survivors of domestic vioience assisted Four-Year Objective: 44 seniors/disabled assisted with day care 300 seniors/disabled assisted with food 320 seniors/disabled assisted with legal aid 960 seniors/disabled assisted with ombudsman support 840 seniors/disabled provided with transportation 2,400 lower income persons assisted with food, clothing, shelter, emergency cash assistance, and case management 56 survivors of domestic vioience sheltered and supported 11 seniors/disabled assisted with day care 75 seniors/disabled assisted with food 80 seniors/disabled assisted with legal aid 240 seniors/disabled assisted with ombudsman support 210 seniors/disabled provided with transportation 600 lower income persons assisted with food, clothing, shelter, emergency cash assistance, and case management 14 survivors of domestic vioience sheltered and supported Indicators: One-Year Goal: City of Cupertino 2006-2009 Consolidated Plan Page 32 (("'-]7 Nonhousing Community Development Needs: Nonhousing community development needs include public service, infrastructure, economic development and other development needs in the community that have an important impact on the living conditions of residents. For example, although job training may not directly relate to housing, job training could allow an individual currently living below the poverty level the opportunity to find employment that will help him or her afford a market rate apartment in today's expensive housing market. As HUD guidance states, the purpose of addressing a community's non-housing needs, in addition to its housing needs, is to help create more livable, better functioning, and more attractive communities by integrating economic, physical, environmental, community, and human development programs in a comprehensive and coordinated fashion so that families and communities can work together and thrive. Table 2B describes the priority level for a variety of non housing needs and, where possible, assigns an estimated dollar amount to meet the need. This table takes in to account several funding sources, such as General Fund moneys, that are anticipated to be used to address these needs. Among the highest priorities for the City are services to address senior needs, support to survivors of domestic violence, and a host of infrastructure needs. Although a particular need may have received a "low" ranking, it does not mean the need is unimportant to the City. Rather, in some cases a "low" designation signifies a particular need is addressed through the efforts of the County, such as lead hazard screening. Additionally, even those priority needs ranked "low" may receive funding from time to time, such as services for youth. Although in absolute numbers, youth services needs may rank low, addressing the needs of youth is important to the City. With respect to economic development needs, the City does provide services to businesses but in the form of technical assistance rather than funding. Lead-Based Paint Hazards - As noted in the needs analysis, the number of units with potential lead-based paint hazards is probably less than 700. In addition to working with the County Health Department to identify and assist any children with elevated blood lead levels, the City will, as part of its efforts to address the rehabilitation needs of its housing stock, provide assistance to persons seeking to mitigate lead hazards in the home. Antipoverty Strategy: Poverty rates in Cupertino are significantly lower than in other areas of the country, and in California. Based on 2000 Census data, only about 4.8% of the population is living below the federal poverty level. Although this figure is an increase over the prior decade, it is still substantially lower than the poverty rates for the State and nation as a whole. Povert Rates, 1990-2000: Cu ertino, San José, California and the Nation City of Cupertino 2006-2009 Consolidated Plan Page 33 1(0..-30 Barriers to Affordable Housing and Strategies to Address Negative Effects: As previously described, the Housing Element provides ,details on the constraints to the development of housing, and affordable housing in particular. At the local level, the City has established incentives and waivers to help offset the cost of providing affordable housing (see implementation plans, above), and provides funding assistance for the development and preseNation of affordable housing. In addition, the City will continue its efforts to ensure that its zoning designations allow for the broadest range of housing types at various incomes. City of Cuperuno 2006-2009 Consolidated Plan Page 34 r(~-]o¡ MONITORING STANDARDS The City of Cupertino follows the monitoring requirements for the use of federal funds as directed by HUD. For example, the City is required to prepare Quarterly and Annual Reports for the use of CDBG funds, which will be submitted to the Housing Commission and the City Council to ensure there are appropriate internal "cross check" controls over the use of funds. Subrecipients are monitored for compliance with CDBG regulations and for success in carrying out the goals and objectives defined in their CDBG contract. Each year, program staff define priority areas for the monitoring program based on local and national trends and concerns. During site visits, the City spot checks client files to confirm income eligibility and other guideline compliance, and reviews the agency's performance with respect to the services identified in the contract. Specific questions to be addressed include: · Is the project operating within the approved budget? If not, why not? · Has there been an audit of the agency? If so, a copy is obtained and reviewed. If not, why not? · Where there is program income, what is the process for reporting and using it? · Do accounting records adequateiy identify the use of CDBG funds? · Are accounting records supported by source documentation for vendors (invoices, purchase orders, time sheets, contracts, etc.)? · Can the agency document use of funds through records such as payroll ledgers, cancelled checks, receipts ledgers, bank deposit tickets and bank statements, time sheets and contracts for services? · Is the information reviewed by a site visit consistent with the records maintained by the agency and with data previously provided to the City? · What procedure does the subrecipient use for procurement? Is it consistent with Circular A-11 0 (nonprofits) or A-102 (governmental entities)? · Are the actual measurable accomplishments of the project to date proceeding according to contract projections? If not, why not? · Is the project providing the full scope of services delineated in the contract? If not, why not? · What are the number and percentage of low and moderate-income people served by the project? · How does the project prove that it serves low and moderate-income people? · Does the project serve minority populations? What is the method of outreach? · Is the project on schedule? If not, why not? · How does the agency evaluate the effectiveness of the project? · Does the project conform to any additional terms of the contract? · Has any work on the project been subcontracted? · What effort was made to employ local residents and use local businesses and contractors? · Is the agency complying with equal opportunity requirements? · Is the agency complying with disability access and nondiscrimination requirements? City of Cupertino 2006-2009 Consolidated Plan Page 35 flfÆ~'-ID Subrecipients are reimbursed for expenses incurred on a quarterly basis upon submission of full documentation of all expenses. Reimbursements are made only for line items contained in the budget of the contract between the agency and the City. The City additionally monitors its housing and community development goals by reviewing the implementation of various strategies outlined in the Consolidated Plan to ensure the targeting of assistance to priority groups, as identified. The monitoring process also includes solicitation of input from the Housing Commission and the Steering Committee on the Consolidated Plan and the associated Performance Report" These entities advise the City Council on housing policy matters. Each update of the Consolidated Plan is also subject to extensive public review and comment, prior to submission to HUD. City of Cupertino 2006-2009 Consolidated Plan Page 36 ((~-t(t TABLE1A Homeless and Special Needs Population n muum 0 are. ousm, a. a 515 a Unmet Current Under Need! Relative Inventory Development Ga. PriOri! Co r fC . H G An I . Ch rt Beds Emeraencv Shelter 7 0 13 L Transitional Housing 5 0 18 L Permanent Suooortive Housina 2 1 11 L Totai 14 1 42 Individuals Beds Emeraencv Shelter 3 0 1 L Transitional Housing 9 0 2 L Permanent Suooortive Housina 4 0 3 L Total 16 0 6 Persons in Families with Children 1. Homeless Individuals 2. Homeless Families with Children 2a. Persons in Homeless Families with Children Total (lines 1 + 2a) Part 2: Homeless Subpopulations 1. Chronicall Homeless 2. Seriousl Mentall III 3. Chronic Substance Abuse 4. Veterans 5. Persons with HIV/AIDS 6. Victims of Domestic Violence 7. Youth 3 7 4 14 L 10 11 Sheltered 33 Unsheltered 54 Total 1 8 6 2 1 4 1 L L M L L L L City of Cupertino 2006-2009 Consolidated Plan Page 37 ({a.-L/L TABLE1B Priority Needs of Special Needs Populations Priority Need level High, Medium, Dollars to Low, Unmet Address SPECIAL NEEDS SUBPOPUlATIONS No Such Need Need Unmet Need Goals Elderlv H 150 $11,250,000 75 Frail Elderlv M 70 $5,250,000 21 Severe Mental Illness L 30 $2,250,000 5 Develonmentallv Disabled M 60 $4,500,000 18 Phvsicallv Disabied M 70 $5,250,000 21 Persons w/ Alcohol/Other DrÙa~Addictions L 50 $3,750,000 8 Persons w/HIV/AIDS L 10 $750,000 2 Other (homeless, victims of domestic violence) H 400 $30,000,000 60 TOTAL 840 $63,000,000 210 City of Cupertino 2006-2009 Consolidated Plan Page 38 !frA-C{J TABLE 2A Priority Needs Summary Table Priority Need Income Level: High, Unmet PRIORITY HOUSING NEEDS (households) Categor Medium, Low Need Goals 0-30% H 138 69 Small Related 31-50% H 116 58 51-80% M 53 16 0-30% M 30 9 Large Related 31-50% L 11 2 51-80% L 8 1 Renter 0-30% H 101 51 Senior 31-50% M 34 10 51-80% L 26 4 0-30% L 0 0 All Other 31-50% L 0 0 51-80% L 0 0 0-30% H 202 101 Owner (BMR ownership units) 31-50% M 128 38 51-80% L 99 15 Other Special Needs (Estimated 0-80% H 375 188 Total Goals 1,320 475 Total 215 Goals 475 Total 215 Renter Goals 407 Total 215 Owner Goals 68 City of Cupertino 2006-2009 Consolidated Plan Page 39 II fA ~ L/l( TABLE 2B Community Development Needs Priority Unmet Need Priority Funding Source (If PRIORITY COMMUNITY DEVELOPMENT NEEOS Level Need Annual Goal known) Senior Centers L Handicaooed Centers L Homeless Facilities M 26 $29,000 General Fund Youth Centers L Child Care Centers M Health Facilities L Neiahborhood Facilities L Parks andlor Recreation Facilities M $3,744,000 General Fund/Other Parkina Facilities L Non-Residential Historic Preservation L Other Public Facilitv Needs M $325,000 General Fund/Other INFRASTRUCTURE (Dreiects) Water/Sewer Imorovements L Street Imorovements M $750,000 General Fund/Other Sidewalks M 30,000 LF $500,000 General Fund/Other Solid Waste DisDosallmorovements L Flood Drain Imorovements M $75,000 General Fund/Other Pedestrian/Bicycle Facilities M Traffic Facilities M PUBLIC SERVICE NEEDS (oeDnle) Senior Services H 311 $24,668 CDBG/Human Svcs Grant Disabled Services M 240 $3,187 Human Svcs Grant Homeless Services M 105 $25,396 CDBG/Human Svcs Grant Fair Housina Services M 11 $8,823 CDBG Youth Services L Child Care Services M T ransDortation Services M 210 $7,115 Human Svcs Grant Substance Abuse Services L Employment Trainino M Health Services L Lead Hazard Screenina L Crime Awareness L Domestic Violence Sunnort H 14 $4,202 CDBG/Human Svcs Grant Food, Clothinq and Other Basic Needs M 675 $37,548 CDBG/Human Svcs Grant ECONOMIC DEVELOPMENT ED Assistance to For·Profitslbusinesses\ M ED Technical Assistancefbusinesses) M Micro·Enterorise Assistancelbusinesses) L Rehab; Publicly- or Privately·Owned Commerciallfndustrial loroiects) L C/I" Infrastructure Develooment (oroiects) L Other C/I" Imorovements(oroiects) L NEW CONSTRUCTION/ACQUISITION/GEN'L HOUSING Affordable Housinn Fund Activities BMR) H 250 $65,000 AHF Construction/Acquisition/Rehab H $270,392 CDBG PLANNING Plannina and Administration H $74,304 CDBG TOTAL ESTIMATED DOLLARS NEEDED: $13,592,635 PUBLIC FACILITY NEEDS ( to ects City of Cupertino 2006-2009 Consolidated Plan Page 40 !f 0.. - '-I ~