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HC 04-25-2024 PresentationsHousing Commission Meeting April 25, 2024 Presentations Item 2 FY 2024-25 Community Development Block Grant (CDBG) Annual Action Plan (AAP) Alec Vybiral, Senior Housing Coordinator April 25, 2024 Fiscal Year (FY) 2024-25 Community Development Block Grant (CDBG) Annual Action Plan (AAP) Purpose Approve the FY 2024-25 CDBG Annual Action Plan. Community Development Block Grant (CDBG) Program ●Annual Entitlement grant funding from HUD ●Assist low- and moderate-income persons Annual Action Plan (AAP) ●Covers one fiscal year (July 1 – June 30) ●Consistent with Consolidated Plan ●Describes the activities and funding allocations Allocated CDBG Funds Organization Funding Amount Rebuilding Together Silicon Valley- Homeowner Repair and Rehabilitation Program $96,237.00 City of Cupertino – Senior Center Cooling System Improvements $55,468.80 Live Oak Adult Day Services $9,902.34 West Valley Community Services (WVCS) – Community Access to Resources and Education Program (CARE)$18,695.61 TOTAL $180,303.75 9 COMPLIANCE TIMELINE NOFA Application Window: Nov 6 - Feb 6 HC Funding Recommendations: March 14 CC Approves Recommendations: April 16 Housing Commission Approves AAP: April 25 Submit AAP to HUD: By May 15th 30-Day Public Comment Period: March 26, 2024, through April 24, 2024 Next Steps Approve the FY 2024-25 CDBG Annual Action Plan. The AAP will be submitted to HUD by the May 15, 2024, deadline. Housing Commission Meeting April 25, 2024 Presentations Item 3 Study Session and Staff Presentation on the 6th Cycle Housing Element Update 1 Planning Commission April 29, 2024 6th Cycle Housing Element Update Adoption Agenda Background Current Status Conditional Certification Letter received from HCD (April 10) RHNA/Priority Sites Policies and Strategies Timeline and next steps 1 2 2 Background What is a Housing Element? State-mandated Element of City’s General Plan Why update it now? Unlike other General Plan Elements required by State law to be updated every 8 years Purpose of the Update: Study and plan for housing needs in the community, across all income levels Background What does State law require? Public Participation Needs Analysis Review of prior Housing Element policies/programs Develop policies/programs to address current needs Housing Sites Inventory Who reviews and certifies compliance with State law? CA Department of Housing and Community Development (HCD) 3 4 3 Related Updates Conforming changes: Other General Plan Elements – Land Use, Transportation, Specific Plans and appendices Rezoning – map and text State law requirements: Health and Safety Element Other – necessary to implement HE programs (e.g. Objective design standards for housing developments) Related Updates 6th Cycle Housing Element update covers 2023- 2031 Planning Period Certification deadline: Jan. 31, 2023 (passed) Six jurisdictions in Santa Clara County (15 cities/1 county) still do not have compliant Housing Elements 38 of 109 ABAG jurisdictions not in compliance 58 of 197 SCAG jurisdictions out of compliance 5 6 4 ABAG RHNA State-wide Housing Needs Determination made by HCD for each region within State Cupertino in 9 County ABAG region City’s RHNA ~1% of ABAG region’s RHNA % of totalUnitsIncome Group 26.01,193Very Low Income (<50% of AMI) 15.0687Low Income (50%-80% of AMI) 16.5755Moderate Income (80%-120% of AMI) 42.51,953Above Moderate Income (>120% of AMI) 1004,588Total Affordable Units = 2,635 Cupertino’s 6th Cycle RHNA Buffer ~ 25 - 35% particularly for lower income levels recommended to ensure city does not have to update sites inventory before next HE update for “no net loss” purposes. RHNA + Buffer accommodates over 6,200 units. 7 8 5 Background: 6th Cycle vs. 5th Cycle RHNA 4x higher in Cupertino--4,588 vs. 1,064 Few remaining undeveloped sites, reliance on redevelopment to meet RHNA 62 properties, 36 development sites 70% of properties 50 units/acre or more New legislation adds requirements in: Developing policies/programs Greater accountability to produce housing Site selection Less discretion approving housing developments Affirmatively Furthering Fair Housing (AFFH) More outreach and inclusion Background: Noncompliance What can happen if City does not have a certified Housing Element? Loss of local land use and zoning control – Builder’s Remedy projects Lawsuits and attorney fees Ineligibility for grant funding Financial penalties, court issued fines Streamlined ministerial approval of projects Court receivership appointing an agent to bring City’s Housing Element into compliance 9 10 6 Affirmatively Furthering Fair Housing (AFFH) AB 686 (2018) defines AFFH as: “taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics.” Three community meetings focused on AFFH held May-September 2022 Affirmatively Furthering Fair Housing (AFFH) - Cupertino City is designated High or Highest Resource regarding Access to Opportunities Housing anywhere in City would regionally Affirmatively Further Fair Housing City must look to accommodate persons who currently do not reside here Meeting RHNA alone does not equate to satisfying AFFH (Missing Middle Strategy) 11 12 7 What’s happened so far?What’s happened so far? 2021 Comm. Mtgs (Aug & Dec) Jt. Study Sessions (Apr & May) CC Mtg (Sept) HC Mtg (Dec) Jan – Jun 2023 Jul – Dec 2022 CC Mtgs (Aug, Nov) PC (July) CEP-SAC mtgs (Jul, Sep, Oct) Comm. Mtg (Jul, Sep) Jan – Jun 2022 PC mtgs (Jan, Feb, Apr, May, June) CC mtgs (Mar) HC mtg (Jun) CEP-SAC mtgs (Mar, Apr, May, Jun) Comm. Mtg (May) Jan –Mar 2024 CC Mtg (Jan) 1st Draft to HCD (2/4) Comments from HCD (5/4) CC Mtg (Jul) Comm. Mtgs (Jul, Aug) 2nd Draft to HCD (10/16) Revised 2nd Draft to HCD (11/30) Comments from HCD (12/15) 3rd Draft to HCD (2/27) Revised 3rd Draft to HCD (3/28) Conditional Certification letter from HCD (4/10) Jul – Dec 2023 Sites Inventory: Pre-HE Submittal Robust discussions in 2022 at Housing and Planning Commissions and City Council Started with all potential sites throughout the City which: Met HCD size criteria: 0.5 – 10 acres Properties outside of fire hazard and geologic hazard zones –more environmental impacts Owner interest a factor 13 14 8 Sites Inventory: Direction Pre-HE submittal More interest in accommodating housing west of De Anza Blvd and south of Highway 85 Less interest in accommodating housing east of De Anza Blvd due to recent approvals Locate housing sites to counteract declining school enrollment Avoid displacement of existing residents through redevelopment of residential properties Policy Framework State laws: link land use and transportation (AB 32 and SB 375) Regional plans (Plan Bay Area 2050 and Regional Transportation Plan) align with state law AB 2011 (eff. July 1, 2023): Allows Residential development on Commercial-Office Corridors regardless of Zoning: Density and building height varies depending on lot size and width of transportation corridor Identifies min. development standards Ministerial, exempt from CEQA 15 16 9 Current Site selection strategy With Council direction in July 2023, site selection strategy adjusted based on: New State law realities – AB 2011/SB6 Proximity to transportation – AB32/SB375 Aligning with regional plans – PBA2050 & RTP City’s existing policies – LU-1.1 & CAP Consultant experience based on likelihood of site acceptance by HCD Development potential of site Size of sites – 0.5 acres (min.) to 10 acres (max.) Current Housing Element Priority Housing Sites 17 18