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HC 10-24-2024 Searchable PacketCITY OF CUPERTINO HOUSING COMMISSION AGENDA 10185 N. Stelling Road, Quinlan Community Center, Conference Room Thursday, October 24, 2024 5:30 PM Members of the public wishing to observe the meeting may do so in one of the following ways: 1) Attend in person at Quinlan Community Center, 10185 N. Stelling Road 2) The meeting will also be streamed live on and online at https://youtube.com/@cupertinocitycommission Members of the public wishing to comment on an item on the agenda may do so in the following ways: 1) Appear in person at Quinlan Community Center. 2) E-mail comments by 4:00 p.m. on Thursday, October 24 to the legislative body at housingcommission@cupertino.gov. These e-mail comments will also be posted to the City’s website after the meeting. Oral public comments may be made during the public comment period for each agenda item. Members of the audience who address the legislative body must come to the lectern/microphone and are requested to complete a Speaker Card and identify themselves. Completion of Speaker Cards and identifying yourself is voluntary and not required to attend the meeting or provide comments. PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF MINUTES 1.Subject: Approve the minutes of the September 26, 2024 Housing Commission meeting. Recommended Action: Approve the minutes of the September 26, 2024 Housing Commission meeting. A - Draft minutes Page 1 1 HC 10-24-2024 Page 1 of 14 Housing Commission Agenda October 24, 2024 POSTPONEMENTS ORAL COMMUNICATIONS This portion of the meeting is reserved for persons wishing to address the Commission on any matter within the jurisdiction of the Commission and not on the agenda. Speakers are limited to three (3) minutes. In most cases, State law will prohibit the Commission from making any decisions with respect to a matter not on the agenda. WRITTEN COMMUNICATIONS OLD BUSINESS NEW BUSINESS 2.Subject: Fiscal Year (FY) 2025-26 Notice of Funding Availability (NOFA) and Request For Proposals (RFP) Recommended Action: Receive informational presentation. Informational Report A - FY 2025-26 NOFA RFP STAFF AND COMMISSION REPORTS FUTURE AGENDA SETTING ADJOURNMENT In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend this meeting who is visually or hearing impaired or has any disability that needs special assistance should call the City Clerk's Office at 408-777-3223, at least 48 hours in advance of the meeting to arrange for assistance. In addition, upon request in advance by a person with a disability, meeting agendas and writings distributed for the meeting that are public records will be made available in the appropriate alternative format. Any writings or documents provided to a majority of the members after publication of the agenda will be made available for public inspection. Please contact the City Clerk’s Office in City Hall located at 10300 Torre Avenue, Cupertino, California 95014, during normal business hours. IMPORTANT NOTICE: Please be advised that pursuant to Cupertino Municipal Code section 2.08.100 written communications sent to the City Council, Commissioners or staff concerning a matter on the agenda are included as supplemental material to the agendized item. These written communications are accessible to the public through the City website and kept in packet archives. Do not include any personal or private information in written communications to the City that you do not wish to make public, as written communications are considered public records and will be made Page 2 2 HC 10-24-2024 Page 2 of 14 Housing Commission Agenda October 24, 2024 publicly available on the City website. Page 3 3 HC 10-24-2024 Page 3 of 14 CITY OF CUPERTINO Agenda Item 24-13441 Agenda Date: 10/24/2024 Agenda #: 1. Subject: Approve the minutes of the September 26, 2024 Housing Commission meeting. Approve the minutes of the September 26, 2024 Housing Commission meeting. CITY OF CUPERTINO Printed on 10/16/2024Page 1 of 1 powered by Legistar™4 HC 10-24-2024 Page 4 of 14 1 City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 (408) 777-3308 DRAFT MINUTES OF THE HOUSING COMMISSION MEETING HELD ON September 26, 2024 CALL TO ORDER Chair Cunningham opened the meeting at 5:30 p.m. ROLL CALL Commission Members present: Connie Cunningham, Chair Ryan Golze, Vice Chair Angan Das, Commissioner Yuyi He, Commissioner Govind Tatachari, Commissioner Staff present: Luke Connolly, Assistant Director of Community Development Nicky Vu, Senior Housing Coordinator Tommy Yu, IT Manager APPROVAL OF MINUTES 1. Subject: Approve the April 25 Housing Commission meeting minutes Recommended Action: Approve the April 25 Housing Commission meeting minutes. MOTION: Golze moved, and Tatachari seconded to approve the minutes. AYES: Cunningham, Golze, He, Tatachari NOES: None ABSTAIN: None ABSENT: Das VOTE: 4-0-0-1 POSTPONEMENTS None ORAL COMMUNICATIONS No oral communications were received. WRITTEN COMMUNICATIONS No written communications were received. 5 HC 10-24-2024 Page 5 of 14 2 OLD BUSINESS None NEW BUSINESS 2. Subject: Informational presentation on the Program Year (PY) 2023 Community Development Block Grant (CDBG) Consolidated Annual Performance and Evaluation Report (CAPER). Recommended Action: Conduct Public Hearing; and Approve submission of the PY 2023 CAPER to the United States Department of Housing and Urban Development (HUD). Senior Housing Coordinator Vu provided an overview and made a presentation. Commissioners asked clarifying questions. Commissioner He asked for clarification on race ethnicity data of clients served by CDBG programs in terms of disparities with overall population data and whether or not non-CDBG homeless related activities need to be reported in the CAPER. Senior Housing Coordinator Vu stated that low-income populations in Cupertino tended to skew older and white when compared to the total population, and that the CAPER is specifically for reporting CDBG funded activities to HUD. Commissioner Das asked for clarification about how subrecipients could exceed 100% of their annual goals. Senior Housing Coordinator Vu stated that with each subrecipient contract, there is an intended low-income population to be served. When a subrecipient serves more individuals than they estimated for the year, then they are able to exceed 100% of their annual goal. Commissioner Tatachari asked about Section 3 reporting and why it showed zero hours completed. Housing Coordinator Vu stated that Section 3 is a labor reporting requirement, and the only CDBG Capital Project, the Senior Center Fire Sprinkler Replacement, has not yet commenced construction, so Section 3 hours worked will be reported in the 2024 CAPER. MOTION: Golze moved, and Tatachari seconded to approve the Draft FY 2023-24 CDBG CAPER for submittal to HUD. Motion carried with the following vote: AYES: Tatachari, Cunningham, Golze, He, Das NOES: None ABSTAIN: None ABSENT: None VOTE: 5-0-0-0 Chair Cunningham closed the item. STUDY SESSION None. 6 HC 10-24-2024 Page 6 of 14 3 STAFF UPDATES AND COMMISSION REPORTS Chair Cunningham gave a brief report on the Mayor’s Commissioner Meeting. Chair Cunningham closed the item. Senior Housing Coordinator Vu gave a brief agenda setting update for the October Housing Commission meeting, which might include announcement of the 2025-2026 NOFA, development of the 2025-2030 CDBG Consolidated Plan, and a new policy regarding expiring Below Market Rate Rental Units. Chair Cunningham closed the item. FUTURE AGENDA SETTING Vice Chair Golze asked that additional updates on unhoused prevention and updates on regional efforts for unhoused services be added to future agendas. Commissioner He asked that the City explore the possibility of public housing be explored as a future agenda topic. Commissioner Tatachari asked that updates regarding the City’s Capital Infrastructure Report be included into future agendas. Chair Cunningham asked that the creation of a centralized Below Market Rate list be explored as a future agenda topic. ADJOURNMENT The meeting was adjourned at 6:11 p.m. to the next regularly scheduled Housing Commission meeting. Respectfully submitted: ___ Nicky Vu Senior Housing Coordinator 7 HC 10-24-2024 Page 7 of 14 CITY OF CUPERTINO Agenda Item 24-13442 Agenda Date: 10/24/2024 Agenda #: 2. Subject:Fiscal Year (FY) 2025-26 Notice of Funding Availability (NOFA) and Request For Proposals (RFP) Receive informational presentation. CITY OF CUPERTINO Printed on 10/16/2024Page 1 of 1 powered by Legistar™8 HC 10-24-2024 Page 8 of 14 HOUSING COMMISSION INFORMATIONAL REPORT October 24, 2024 Subject Fiscal Year (FY) 2025-26 Notice of Funding Availability (NOFA) and Request For Proposals (RFP) (Attachment A) Discussion Each year the City of issues a Notice of Funding Availability (NOFA) and Request For Proposals (RFP) in order to notify organizations and members of the public about grant funding opportunities. It summarizes the estimated amounts of funding that will be available, the types of activities that are eligible, and requests that interested parties submit proposals to receive funding. For FY 2025-26, funding is available for Capital/Housing Projects through Community Development Block Grant (CDBG) funds in the estimated amount of $267,000, and Below Market Rate Affordable Housing Funds (BMR AHF) in the estimated amount of $4,800,000. The City is also accepting applications for public services for non-profits which provide assistance low-income residents in the CDBG, BMR, and Human Services Grant (HSG) program. The available funding for each program is estimated to be as follows: 1. BMR AHF Public Services (up to $50,000) 2. CDBG Public Services (approx. $58,000) 3. General Fund Human Services Grant (HSG) Program (up to $129,000) Public service contracts will be awarded on a two-year grant funding cycle starting with FY 2025/26 and ending with FY 2026/27. Eligible programs include but are not limited to: tenant/landlord dispute resolution, fair housing programs, senior services, homeless services, and other services that serve low- and/or moderate-income households. However, the priorities for CDBG Public Service funding will be finalized during the development of the 2025 – 2030 Consolidated Plan. The estimated CDBG dollar amounts may change based upon the final Federal budget approved by Congress. BMR and HSG allocations are subject to City Council approval and may change as a result. CDBG is federal funding that is received on an annual basis from the U.S. Department of Housing and Urban Development, also known as HUD. BMR AHF is funding that is 9 HC 10-24-2024 Page 9 of 14 generated through residential and non-residential affordable housing mitigation fees. Some examples of eligibles uses for these funds under the Capital/Housing category are land acquisition and building rehabilitation. HSG funding comes from the City of Cupertino’s local general fund. Allocations are subject to City Council approval but generally aim to serve similar goals to CDBG Public Service funding. These funds are meant to assist specific populations in the Cupertino community with the main purpose of helping low-income and other disadvantaged communities. Anyone who is interested in applying can access the application online at citydataservices.net. All applications will undergo an initial eligibility review by City staff. In the spring, the Housing Commission will have the opportunity to review the applications and make funding recommendations. The NOFA/RFP application period will open on November 4, 2024, and will close on February 4, 2025. Attachments: A – FY 2025-26 NOFA/RFP ______________________________________________________________________________ Prepared by: Nicky Vu, Senior Housing Coordinator Reviewed by: Luke Connolly, Assistant Director of Community Development Approved for Submission by: Benjamin Fu, Director of Community Development 10 HC 10-24-2024 Page 10 of 14 Page 1 of 4 City of Cupertino Notice of Funding Availability (NOFA) and Request for Proposals (RFP) Issued: November 04, 2024 Deadline: February 04, 2025 The City of Cupertino has issued the fiscal year (FY) 2025/26 NOFA and RFP. The City is requesting proposals for eligible capital housing projects and public service programs. The City may award and appropriate funds to one or more eligible projects in each funding category. Funds must be used to serve low- and/or moderate-income households located within the City of Cupertino jurisdiction limits . The following funding sources are on a one-year grant funding cycle (FY 25/26): 1. Below Market Rate (BMR) Affordable Housing Fund (AHF) Capital Housing Projects (up to $4,800,000) 2. Community Development Block Grant (CDBG) Capital Housing Projects (approx. $267,000) The following funding sources are on a two-year grant funding cycle (FY 25/26 & 26/27): 1. BMR AHF Public Services (up to $50,000) 2. CDBG Public Services (approx. $58,000) 3. General Fund Human Services Grant (HSG) Program (up to $129,000) The estimated CDBG dollar amounts may change based upon the final federal budget approved by Congress. BMR AHF and General Fund HSG allocations are subject to City Council approval and may change as a result. CAPITAL HOUSING PROJECT FUNDS: • Funding Source #1- BMR AHF Capital Housing Projects (FY 25/26): The City estimates up to $4,800,000 will be available to fund eligible BMR AHF capital housing projects on a competitive basis for FY 25/26. BMR AHF funds must be used for eligible housing projects that will serve low - and/or moderate-income households located within the City of Cupertino jurisdiction limits. Project Requirements: BMR AHF capital housing project funds will not be granted or issued as forgivable loans. The City invites eligible non-profit and for-profit Development Entities (DEs) to submit proposals for eligible funding activities , which include, but are not limited to: ➢ Land acquisition ➢ New construction ➢ Acquisition and/or rehabilitation of buildings for permanent affordability ➢ Substantial rehabilitation Project Affordability Requirements: BMR AHF affordable rental and/or ownership housing proposals must meet the City ’s BMR requirements and offer 99 years of affordability. An affordable regulatory agreement will be recorded against the property to ensure affordability. Eligible Development Entities (DEs): Eligible DEs include non-profit and for-profit organizations licensed to conduct business in the State of California. 11 HC 10-24-2024 Page 11 of 14 Page 2 of 4 • DEs must demonstrate credit worthiness, financial capacity, relevant experience to undertake acquisition, rehabilitation, operation of rental housing, or redevelopment of new affordable housing. • DEs must have no negative financial and project management history within the last five years (i.e., DEs has not been in monetary default on a loan and has been current on all financial obligations and compliance documentation). Loan Terms and Requirements: Rental Ownership Loan Type: Acquisition, predevelopment/construction converting to permanent, rehabilitation Acquisition, rehabilitation and/or construction Interest Rate: 3.0% simple interest 3.0% simple interest Loan Term: 30 yrs. 30 yrs. Affordability Term: 99 yrs. 99 yrs. Security: Deed of Trust, Promissory Note and other regulatory agreements recorded against the property as required by the City Deed of Trust, Promissory Note, and other regulatory agreements recorded against the property as required by the City Security Position: Will consider subordinating to a construction or permanent lender with City approval Will consider subordinating to a construction or permanent lender with City approval Repayment Terms: Interest only. All outstanding interest and principal will be due in full and payable on or by the maturity date. Required 50/50 split of the residual receipts. Interest only. All outstanding interest and principal will be due in full and payable on or by the maturity date. Required 50/50 split of the residual receipts. Timeframe: It is expected that projects must proceed expeditiously to construction It is expected that projects must proceed expeditiously to construction Financial Pro- Forma: Submit development financial pro-forma to be reviewed by City. Subject to review by qualified third-party consultant/organization to determine reasonableness Submit development financial pro-forma to be reviewed by City. Subject to review by qualified third-party consultant/organization to determine reasonableness Environmental Conditions: All environmental conditions (EX: CEQA) that are applicable to an eligible project must be satisfied All environmental conditions (EX: CEQA) that are applicable to an eligible project must be satisfied Project Conditions: Project may be subject to Planning Commission and/or City Council approval prior to Deed of Trust, Promissory Note and other recorded regulatory agreements being executed and disbursement of funding being approved Project may be subject to Planning Commission and/or City Council approval prior to Deed of Trust, Promissory Note and other recorded regulatory agreements being executed and disbursement of funding being approved Underwriting Criteria: Proposals and DE’s will be underwritten in accordance with City policies which includes, but not limited to, compliance with the General Plan, BMR Housing Mitigation Program Procedural Manual (Housing Mitigation Manual), and Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units (BMR Manual). • Funding Source #2: CDBG Capital Housing Projects (FY 23/24): The City estimates allocating approximately $267,000 in funding for eligible CDBG capital housing projects on a competitive basis for FY 25/26. CDBG capital housing project funds must be used for projects that will serve low-income households located within the City of Cupertino jurisdiction limits. CDBG capital housing projects 12 HC 10-24-2024 Page 12 of 14 Page 3 of 4 are subject to HUD Section 3 requirements. The CDBG program is directed toward expanding and maintaining the affordable housing supply; promoting housing opportunities and choices; maintaining and improving community facilities; increasing economic opportunities, accessibility, energy efficiency and sustainability; and providing supportive services specifically for persons of very low and/or low-income. Targeted groups might include persons who are homeless, seniors, persons with disabilities, and other special needs groups. The City estimates receiving an approximate total of $387,000 in CDBG program entitlement funds from the United States Department of Housing and Urban Development (HUD) for FY 25/26. Approximately $35,000 in unexpended CDBG funds from FY 23/24 FY 24/25 will be added to the eligible CDBG capital housing project category. CDBG funding is allocated on a competitive basis . A list of eligible CDBG capital housing project activities is available on the HUD website: https://www.hudexchange.info/cdbg-entitlement/cdbg-entitlement- program-eligibility-requirements/. Santa Clara County Measure A- Affordable Housing Bond The City’s NOFA/RFP is issued in conjunction with the County’s NOFA for the Measure A - Affordable Housing Bond. Measure A funding is available on a rolling basis for development capital funding, project -based vouchers, and acquisition funding. Information and applications are available on the County's Website. PUBLIC SERVICE FUNDS: (Note: Two-year funding cycle for FY 25/26 & FY 26/27) The City will award all Public Service funds through this NOFA/RFP on a two-year cycle to line up with the 2025-2030 CDBG Consolidated Plan. • Funding Source #3- BMR AHF Public Services (FY 25/26 & 26/27): The City estimates allocating up to $50,000 in funding annually for eligible BMR AHF public service programs for the two-year cycle. BMR AHF funds will be awarded on a competitive basis and must be used for eligible public service programs that will serve low- and/or moderate-income households located within the City of Cupertino jurisdiction limits. Eligible BMR AHF programs may include, but are not limited to, tenant/landlord dispute resolution, fair housing programs, and other programs serving low- and/or moderate-income households. • Funding Source #4- CDBG Public Services (FY 25/26 & 26/27): The City estimates allocating up to $58,000 in funding annually for eligible CDBG public service programs for the two-year cycle. CDBG public service funds will be awarded on a competitive basis and must be used to serve low-income households within the City of Cupertino jurisdiction limits. • Funding Source #5- General Fund HSG Program (FY 25/26 & 26/27): The City estimates allocating up to $129,000 in funding annually for eligible HSG programs for the two-year cycle. HSG funds will be awarded on a competitive basis and must be used to serve low- and/or moderate- income households within the City of Cupertino jurisdiction limits. Eligible HSG programs may include, but are not limited to, senior services, homeless services, and other services that serve low- and/or moderate-income households. RFP Review Process: Upon receipt of proposals, staff will conduct an initial review to determine program and/or project eligibility and completeness. The City reserves the right to request additional information from an applicant. After the RFP deadline, all eligible and complete applications will be forwarded to the City’s five-member Housing Commission for initial rating and ranking. A Housing Commission public hearing will be held in Spring 2025 and funding recommendations will be forwarded to the City Council for final approval. A City Council public hearing will be held in Spring 2025 to determine the final funding recommendations. Award Notification: In late Spring 2025, organizations will be notified of City Council final funding recommendations through this FY 25/26 NOFA/RFP. 13 HC 10-24-2024 Page 13 of 14 Page 4 of 4 Disclaimer: This RFP does not commit the City to award any contract or developer agreement, execute any grant or loan documents, pay and pre-award expenses, or pay any costs incurred in the preparation of a proposal. The City reserves the right to: 1) accept or reject any or all proposals received; 2) waive a non-substantive deficiency or irregularity; 3) negotiate with any qualified applicant; 4) execute grant or loan documents in what it believes to be in the best interest of the City; 5) cancel this request, in part o r its entirety, if it is deemed to be in the best interest of the City; 6) reject the proposal of any applicant who has previously failed to perform properly; 7) reject the proposal of any applicant who has failed to complete a contract within the specified timeframe; 8) reject the proposal of any applicant that is not in a position to fulfill a resulting contractual obligation; or 9) recommend partial funding of a proposal. Evaluation Criteria: Proposals will be reviewed and scored relative to the below program and project scoring summary. The maximum possible score is 100. Scoring Summary Points 1. Organization Experience and Capacity 50 2. Program/Project Readiness 30 3. Program/Project Leveraged Funds 20 Maximum Possible Score 100 RFP Application Information & Deadlines: The RFP application period will open at 8:00am on Monday, November 04, 2024, and will end at 5:00pm on Tuesday, February 04, 2025. Organizations who intend to apply for funds through this RFP must apply online at www.citydataservices.net. To obtain a temporary login username and password, please visit and request at www.citydataservices.net. For additional questions, please contact Nicky Vu, Senior Housing Coordinator, at NickyV@cupertino.org or (408) 777-1347. Any RFP application that does not meet the deadline will not be accepted. Note: All proposals are subject to the conditions, instructions and specifications included in this NOFA/RFP. Applicants will be notified of upcoming meetings and public hearings to discuss the expenditure of BMR AHF, General Fund HSG, and CDBG funds. The City will provide alternative accessible formats of this document upon request. If you need this document in an alternative format such as large print, Braille, audiotape, or computer disc, please contact the City at the contact information listed above. 14 HC 10-24-2024 Page 14 of 14