HC Packet 05-11-2017 CITY OF CUPERTINO
AGENDA
CUPERTINO HOUSING COMMISSION
10300 Torre Avenue, City Hall Conference Room C
Thursday, May 11, 2017
9:00 AM
Amended
Amended Item#2,Attachment 4, at 3:20pm May 4,2017
ROLL CALL
APPROVAL OF MINUTES
1. Subject: Draft Minutes of April 13, 2017
Recommended Action: approve or modify the Draft Minutes of April 13, 2017
Draft Minutes of April 13. 2017
POSTPONEMENTS
ORAL COMMUNICATIONS
Thzs portion of the meetzng zs reserved for persons wishzng to address the commzsszon on
any matter not on the agenda. Speakers are limzted to three (3) minutes a person. In most
cases, state law will prohzbit the commzsszon fi^om makzng any deczszons with respect to a
matter not lzsted on the agenda.
This portion of the meeting is reserved for persons wishing to address the members on
any matter not on the agenda. Speakers are limited to three (3) minutes. In most cases,
State law will prohibit the council fi^om making any decisions with respect to a matter
not listed on the agenda
WRITTEN COMMUNICATIONS
PUBLIC HEARINGS
2• Subject: 2017-18 Community Development Block Grant (CDBG) Program,
General Fund Human Service Grants (HSG) Program and Below Market
Rate (BMR) Affordable Housing Fund (AHF) funding allocations.
CITYOF CZiPERTINO Pnge 1
Housing Commission AGENDA May 11,2017
Recommended Action: Approve the Draft Resolution recommending the 2017-18
CDBG, HSG and BMR AHF funding allocations to City Council for final approval.
Staff Report
1 -Draft Resolution 17-XX
2-March 17. 2017 NOFA
3 -April 18.2017 NOFA
4- Grant Application Summarv
5 - Grant A�lication Descriptions
OLD BUSINESS
NEW BUSINESS
STAFF AND COMMISSION REPORTS
ADJOURNMENT
In compliance with the Americans with Disabilities Act (ADA), anyone who is planning
to attend the next 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, 48 hours
in advance of the meeting to arrange for assistance. Upon request, in advance, by a
person with a disability, meeting agendas and writings dist�^ibuted for the meeting that
are public records will be made available in the appropriate alternative format. Also
upon request, in advance, an assistive listening device can be made available for use
during the meeting.
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 during normal business hours.
Members of the public are entitled to address the members concerning any item that is
described in the notice or agenda for this meeting, before or during consideration of
that item. If you wish to address the members on any other item not on the agenda, you
may do so during the public comment.
CITYOF CZiPERTINO Pnge 2
Housing Coimnission
April 13,2017
City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014
(408) 777-3308
DRAFT MINUTES OF THE REGULAR MEETING OF
THE HOUSING COMMISSION HELD ON Apri113,2017
ROLL CALL
Commission Members present: Nina Daruwalla, Chair
Sue Bose, Commissioner
John Zhao, Commissioner
Commission Members absent: Shirley Chu, Vice Chair
Sanjiv Kapil, Commissioner
Staff present: Benjamin Fu,Assistant Director of Community Development
Kerri Heusler, Senior Housing Planner
APPROVAL OF MINUTES
Minutes of the February 9,2017 Housing Commission meeting were approved as written.
POSTPONEMENTS
None
ORAL COMMUNICATIONS
Resident Connie Cunningham addressed the Commission in support of the City's Below Market Rate
BMR) Housing Program and Accessory Dwelling Units (ADUs), and concerns about homeless De Anza
students.
WRITTEN COMMUNICATIONS
None
OLD SUSINESS
None
NEW SUSINESS
1) Selection of a consultant for the City's BMR Housing Program funded through the City's BMR
Affordable Housing Fund (AHF).
Chair Daruwalla stated that she served on the interview panel and participated in the selection process
along with Vice Chair Chu. Staff inember Heusler provided an overview of the BMR Housing Program
and the Request for Proposal (RFP) process to select a consultant for BMR Program Administration.
Commissioners unanimously selected Hello Housing as the consultant.
MOTION: Commissioner Bose moved to approve Draft Resolution 17-01 recommending approval of the
2017-18 consultant for BMR Program Administration to City Council for final adoption.
APPROVE: Commissioners Bose, Daruwalla,Zhao
ABSENT: Commissioners Chu, Kapil
ABSTAIN: none
VOTE: 3-0-2
STAFF AND COMMISSION REPORTS:
Staff inember Heusler stated that funding allocations will be presented at next month's meeting and
Commissioners will review proposals ahead of time on City Data Services. Staff will send login
information for City Data Services. The City is hosting a First Time Buyer Workshop on May 13rh as part
of Affordable Housing Week. Priority will be given to Cupertino residents and flyers have been sent to
everyone on the BMR waiting list. Staff will notify Commissioners of housing related community events
in the region.
Commissioner Zhao requested a future agenda item to track income levels and add requirements to
Accessory Dwelling Units (ADUs). Staff inember Fu reminded Commission of the ADU presentation at
the February meeting and offered another presentation to the Commission. Staff inember Fu offered
assistance from Staff to go over new ADU requirements.
ADTOURNMENT:
The meeting was adjourned at 9:17am to next regular Housing Commission meeting on May 11, 2017,
9:OOam.
Respectfully submitted:
/s/Kerri Heusler
Kerri Heusler
Senior Housing Planner
2
COMMUNITY DEVELOPMENT DEPARTMENT
CITY HALL
10300 TORRE AVENUE • CUPERTINO,CA 95014-3255
C U P E RT I N O TELEPHONE: (408)777-3308 • www.cupertino.org
HOUSING COMMISSION STAFF REPORT
May 11, 2017
Sub�ect
FY 2017-18 Community Development Block Grant (CDBG) Program, General Fund
Human Service Grants (HSG) Program and Below Market Rate (BMR) Affordable
Housing Fund (AHF) funding allocations.
Recommended Action
Conduct Public Hearing; and
1. Approve the Draft Resolution recommending the FY 2017-18 CDBG, HSG and
BMR AHF funding allocations to City Council for final approval.
Back rg ound
The United States Department of Housing and Urban Development (HUD) annually
allocates grants such as CDBG, Home Investment Partnerships Program (HOME),
Housing Opportunities for People with AIDS (HOPWA) and Emergency Shelter Grants
(ESG) to local jurisdictions for community development activities. Cupertino is one of
nine entitlement jurisdictions within Santa Clara County. Jurisdictions typically must
have a population of 50,000 or more to qualify as an "entitlement jurisdiction" that
receives grant funding directly from HUD. Entitlement grants are largely allocated on a
formula basis, based on several objective measures of community needs, included the
extent of poverty, populations, housing overcrowding, age of housing and extent of
population growth lag in relationship to other metropolitan areas.
Discussion
Based on information currently being provided by HUD, cities are being told that their
level of CDBG funding will remain the same as last year. The City is estimating $307,592
in funds for the FY 2017-18 based on the CDBG entitlement amount of $307,592 from FY
2016-17. The City of Cupertino intends to use uncommitted CDBG funds from the prior
FY 2016-17 in the amount of approximately $8,161 plus a reallocation of $7,944 in
program income from existing CDBG loan payoffs. Between the estimated FY 2017-18
entitlement grant, uncommitted funds from FY 2016-17 and program income the City of
Cupertino estimates that it will have a total of approximately $323,697 of CDBG funds
to utilize. CDBG funding amounts will be reduced or increased proportionately for FY
2017-18 based on final HUD allocation formula and City Council approval.
Of the estimated $315,536 (entitlement plus program income) for FY 2017-18, only 20%,
or $63,107 may be used for administrative costs to cover salary and benefits of staff who
operate the CDBG program. In addition, 15% of $315,536 or $47,330 may be used to
fund eligible public service activities. Public service activities must benefit very low-
and low-income households. The remaining 65% of the $315,536 or $205,098 plus
uncommitted funds in the amount of $8,161 for a total of $213,259 is proposed to be
used for eligible CDBG capital housing project activities for FY 2017-18.
This is Cupertino's fifteenth year as an entitlement jurisdiction receiving a CDBG grant
directly from HUD. HUD regulations require that eligible housing activities selected for
funding must benefit very low and low-income households or eliminate a blighted area
or address an urgent (emergency) community need and must also meet a national
objective. In addition, only certain types of eligible activities qualify under the CDBG
regulations. Examples of eligible activities are:
• Purchase of Land
• Public improvements
• Public service activities
• Affordable housing developments
• Property acquisition for affordable housing
• Rehabilitation of affordable units
As noted earlier in the report, a total of $213, 259 is proposed to be used for eligible
CDBG capital housing project activities for FY 2017-18. An annual Request for Proposal
(RFP) was issued on February 17, 2017 inviting applicants to apply for CDBG and BMR
AHF capital housing projects grant funding for the upcoming fiscal year (FY) 2017-18
(Attachment B). The RFP deadline ended on March 17, 2017. Due to a lack of proposals,
the RFP was reissued on March 31, 2017 with a new deadline of April 18, 2017
(Attachment C). Following the RFP deadline the Housing Commission will hold a
public hearing on May 11, 2017 to initially rate and rank 2017-18 CDBG capital housing
project applications. The City did not receive any applications for the BMR AHF funds.
The Housing Commission's funding recommendations for 2017-18 CDBG grant
applications will be submitted to the City Council for final approval. CDBG capital
housing project applications will remain on a one-year funding cycle.
2017-18 CDBG, HSG, BMR AHF Public Service Fundin� Allocations
As noted earlier in this report, 15% of $315,536 or $47,330 may be used to fund eligible
public service activities. Public service activities must benefit very low- and low-income
households. In December 2007, the City of Cupertino City Council approved a two-year
grant funding cycle for CDBG, HSG and BMR AHF public service grants. CDBG, HSG
and BMR AHF public service grants were ranked and awarded for the first of a two-
2
year cycle in FY 2016-17. Agencies who were awarded in FY 2016-17 and who remain in
good standing will receive a one-year contract amendment for FY 2017-18.
BMR Program Administration
For over twenty-three years the City has contracted with a consultant for BMR Program
Administration services funded through the BMR AHF grant. In January 2017, the City
issued a Request for Proposals (RFQ) inviting qualified consultants to provide
proposals to administer the City's BMR Program for the upcoming FY 2017-18 to
address the needs of an evolving BMR Housing Program. On April 11, 2017, the
Housing Commission forwarded their recommendation regarding the selection of the
consultant for BMR Program Administration to City Council for final adoption. The
recommendation is expected to be authorized by City Council on May 16, 2017.
Funding allocations will not impact the selection of the Consultant.
General Fund Human Service Grants (HSG) Pro�ram
The City Council allocates approximately $40,000 annually from the General Fund to
human service agencies. Formal agreements and monitoring are required for this
program, but the requirements are less stringent than for federal funding. The Housing
Commission reviews HSG applications at the same time as CDBG and BMR AHF
applications and makes funding recommendations to the City Council. For FY 2017-18,
the City is not accepting new HSG grant applications due to a two-year grant funding
cycle. The two-year grant funding cycle covers FY 2016-17 and 2017-18. If the City
Council changes the amounts of HSG funding for FY 2017-18, then each agency's
funding will be changed proportionately.
Below Market Rate (BMR) Affordable Housin Fund ,AHF�
The Below Market Rate (BMR) Affordable Housing Fund (AHF) receives its revenue
from the payment of housing mitigation fees from non-residential (commercial, retail,
hotel, research and development (R&D) and industrial) and residential development.
The Housing Commission reviews BMR AHF applications at the same time as CDBG
and HSG applications and makes funding recommendations to the City Council. For FY
2017-18, the City is not accepting new BMR AHF public service grant applications due
to a two-year grant funding cycle. The two-year grant funding cycle covers FY 2016-17
and 2017-18. If the City Council changes BMR AHF funding amounts for FY 2017-18
then each agency's funding will be changed proportionately.
For FY 2017-18, the City did not receive any applications for the BMR AHF
capital/housing funds. City staff will continue looking for opportunities to partner with
affordable housing providers. Attachment D provides the CDBG, HSG and BMR AHF
grant application summary for FY 2017-18 and Attachment E provides grant application
descriptions.
3
Process
Although this is the second year of a two-year funding cycle for CDBG public service
grantees, two annual public hearing are still required by HUD for the CDBG FY 2017-18
funding allocations. All required HUD notices are published in the Cupertino Courier
newspaper in advance announcing upcoming CDBG public hearings.
This is the first of two public hearings required by HUD for CDBG. The second public
hearing will be held at a future City Council meeting with a date and time to follow.
Prepared b� Reviewed & Approved b�
/s/Kerri Heusler /s/Ben�amin Fu
Kerri Heusler Benjamin Fu
Senior Housing Planner Assistant Community Development
Director
Attachments:
1 - Draft Resolution 17-XX
2- March 17, 2017 NOFA
3- April 18, 2017 NOFA
4- 2017-18 CDBG, HSF and BMR AHF Grant Application Summary
5- 2017-18 CDBG, HSF and BMR AHF Grant Application Descriptions
4
DRAFT RESOLUTION
A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CUPERTINO
RECOMMENDING APPROVAL OF THE 2017-18 CDBG, GENERAL FUND HUMAN
SERVICE GRANTS (HSG) PROGRAM AND BELOW MARKET-RATE (BMR)
AFFORDABLE HOUSING FUND (AHF) RECOMMENDED FUNDING ALLOCATIONS TO
CITY COUNCIL FOR FINAL ADOPTION
WHEREAS, the Housing and Community Development Act of 1974 provides that funds
be made available for the Community Development Block Grant (CDBG) Program; and
WHEREAS, the City of Cupertino wishes to apply for funds as an Entitlement
Jurisdiction under said Act; and
WHEREAS, the City of Cupertino estimates receiving a $307,952 CDBG entitlement grant
from the United States Department of Housing and Urban Development (HUD) to be allocated
for fiscal year 2017-18; and
WHEREAS, the City of Cupertino estimates allocating $7,944 in CDBG program income
for fiscal year 2017-18; and
WHEREAS, The City of Cupertino estimates allocating up to $8,161 of available
uncommitted CDBG funds from prior fiscal year 2016-17 for fiscal year 2017-18; and
WHEREAS, the City of Cupertino is required to submit a fiscal year 2017-18 CDBG
Annual Action Plan to HUD for review and approval prior to being allowed to expend CDBG
funds for fiscal year 2017-18; and
BE IT FURTHER RESOLVED that the Housing Commission of the City of Cupertino
hereby recommends approval of the fiscal year 2017-18 CDBG, HSG and BMR AHF
recommended funding allocations to the City Council for final adoption; and
BE IT FURTHER RESOLVED that the fiscal year 2017-18 CDBG, HSG and BMR AHF
recommended grant funding allocations will be decreased/increased based on final budget
allocations by HUD and the City Council.
PASSED AND ADOPTED at a regular meeting of the Housing Commission of the City of
Cupertino this 11th day of Ma, ,�by the following vote:
Vote Members of the Housin� Commission
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST: APPROVED:
Kerri Heusler Nina Daruwalla
Senior Housing Planner Chair, Housing Commission
2
• • ' •
• • • • � . . • � �
. • � • • � • • • . � �
. • 1
The City of Cupertino is pleased to announce the fiscal year(FY) 2017/18 Notice of Funding Availability (NOFA) and
Requests for Proposals (RFP). The City is requesting proposals for eligible capital housing projects to be funded
under the Community Development Block Grant (CDBG) Program and Below Market Rate (BMR) Affordable
Housing Fund (AHF).
For FY 2017/18, the City is not accepting applications for CDBG public service, General Fund Human Services
Grants (HSG) or Below Market Rate Affordable Housing Fund (AHF) public service grants due to a two-year grant
funding cycle which began last FY 2016/17 and will continue in FY 2017/18.
The following funding sources below are on a one-year grant funding cycle which will cover FY 2017/18
only.
1. CDBG Capital Housing Projects
2. BMR AHF Housing Projects
Fundinq Source #1: Community Development Block Grant (CDBG) Capital Housinq Proiects:
The City of Cupertino expects to distribute locally an estimated $300,000 in funds for capital housing projects from
the United Stated Department of Housing and Urban Development (HUD) for the CDBG Program in FY 2017/18.
CDBG capital housing project funds must be used for projects that will serve low income households located within
the City of Cupertino jurisdiction limits. The City may award and appropriate funds to one or more eligible projects
within this funding category. If there are any unused CDBG funds from the prior FY 2016/17, the funds will be
added to the eligible CDBG capital housing project category. CDBG funding is proposed to be allocated on a
competitive basis.
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 low and/or very-low income. Targeted groups might include persons who are homeless, seniors, persons
with disabilities and other special needs groups.
Please visit the following link for a list of eligible CDBG capital housing project activities:
https://www.hudexchange.info/cdbg-entitlemenUcdbg-entitlement-program-eligibility-requirements/
Note: The above estimated CDBG dollar amounts may change based upon the final federal budget approved by Congress.
CDBG funding allocations are also subject to City Council approval.
Fundinq Source #2: Below Market Rate (BMR)Affordable Housinq Fund (AHF) Housinq Proiects:
The City estimates up to $10,000,000 will be available to fund eligible BMR AHF housing projects on a competitive
basis for FY 2017/18. 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. The City may award and
appropriate funds to one or more eligible projects within this funding category.
Proiect Requirements:
BMR AHF 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:
Page 1 of 4
➢ Land acquisition
➢ New construction
➢ Acquisition and/or rehabilitation of buildings for permanent affordability
➢ Substantial rehabilitation
Proiect Affordabilitv Requirements:
BMR AHF affordable rental and/or ownership housing proposals must meet the City BMR requirements and offer 99
years of affordability. An affordable regulatory agreement will be recorded against the property to ensure
affordability.
Eliqible Development Entities (DEs):
Eligible DEs include non-profit and for-profit organizations licensed to conduct business in the State of California.
• DEs must demonstrate credit worthiness, financial capacity, relevant past 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, Acquisition, rehabilitation and/or
predevelopment/construction construction
converting to permanent,
rehabilitation
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 Deed of Trust, Promissory Note and
other regulatory agreements other regulatory agreements
recorded against the property as recorded against the property as
required by the City required by the City
Security Position: Will consider subordinating to a Will consider subordinating to a
construction or permanent lender construction or permanent lender
with City approval with City approval
Repayment Terms: Interest only. All outstanding interest Interest only. All outstanding interest
and principal will be due in full and and principal will be due in full and
a able on or b the maturit date a able on or b the maturit date
Timeframe: It is expected that projects must It is expected that projects must
proceed expeditiously to construction proceed expeditiously to construction
Financial Pro-Forma: Submit development financial pro- Submit development financial pro-
forma to be reviewed by City. forma to be reviewed by City.
Subject to review by third-party Subject to review by third-party
qualified consultant/organization to qualified consultant/organization to
determine reasonableness determine reasonableness
Environmental Conditions: All environmental conditions (EX: All environmental conditions (EX:
CEQA) that are applicable to an CEQA) that are applicable to an
eligible project must be satisfied eligible project must be satisfied
Project Conditions: Project may be subject to Planning Project may be subject to Planning
Commission and/or City Council Commission and/or City Council
approval prior to Deed of Trust, approval prior to Deed of Trust,
Promissory Note and other recorded Promissory Note and other recorded
regulatory agreements being regulatory agreements being
executed and disbursement of executed and disbursement of
Page 2 of 4
funding being approved funding being approved
Underwritinq 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 Procedural Manual and BMR Administrative Manual.
Note: BMR AHF dollar amounts are subject to City Council approval and may change as a result.
RFP Review Process:
Upon receipt of CDBG proposals, staff will conduct an initial review to determine whether a program and/or project
application is eligible and that the proposal is complete. The City reserves the right to send a written request to an
applicant requesting additional information.
After the RFP deadline has been completed, all eligible and complete CDBG program and/or project applications will
be forwarded to the City's Housing Commission for initial rating and ranking. The City's Housing Commission is a
five-member board appointed by the City Council and serves as the recommendation body to the City Council
regarding housing policies and funding recommendations. A Housing Commission public hearing will be held in
which the initial rating and ranking of eligible and complete CDBG program and/or project applications will occur.
After the Housing Commission has initially rated and ranked applications, the funding recommendations will be
forwarded to the City Council for final approval. A City Council public hearing will be held in which the final CDBG
and BMR AHF funding recommendations for fiscal year 2017/18 will be made.
Award Notification:
After the City Council has made the final funding recommendations, staff will notify organizations on whether or not
they were awarded funding through this RFP for fiscal year 2017/18.
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 an 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 or 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; 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. Pro ram/Pro�ect Levera ed Funds 20
Maximum Possible Score 100
RFP Application Information & Deadlines:
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 regarding this RFP please contact Kerri Heusler, Senior Housing Planner, at 408.777.3251 or
kerrih@cupertino.org. The RFP application period will open at 8:OOam on Friday, February 17, 2017. The RFP
application period will end at 5:OOpm on Friday, March 17, 2017. Any RFP application that does not meet the RFP
application deadline will not be accepted.
Page 3 of 4
Note: All proposals are subject to the Conditions, Instructions and Specifications included in this RFP.
Applicants will be notified of upcoming meetings and public hearings to discuss the expenditure of
CDBG and BMR AHF funds.
Page 4 of 4
• • ' •
• • • • � . . • � �
. • � • • � • • • . � �
. 1
The City of Cupertino has re-issued the fiscal year (FY) 2017/18 Notice of Funding Availability (NOFA) and
Requests for Proposals (RFP). The City is requesting proposals for eligible capital housing projects to be funded
under the Community Development Block Grant (CDBG) Program and Below Market Rate (BMR) Affordable
Housing Fund (AHF).
For FY 2017/18, the City is not accepting applications for CDBG public service, General Fund Human Services
Grants (HSG) or Below Market Rate Affordable Housing Fund (AHF) public service grants due to a two-year grant
funding cycle which began last FY 2016/17 and will continue in FY 2017/18.
The following funding sources below are on a one-year grant funding cycle which will cover FY 2017/18
only.
1. CDBG Capital Housing Projects
2. BMR AHF Housing Projects
Fundinq Source #1: Community Development Block Grant (CDBG) Capital Housinq Proiects:
The City of Cupertino expects to distribute locally an estimated $300,000 in funds for capital housing projects from
the United Stated Department of Housing and Urban Development (HUD) for the CDBG Program in FY 2017/18.
CDBG capital housing project funds must be used for projects that will serve low income households located within
the City of Cupertino jurisdiction limits. The City may award and appropriate funds to one or more eligible projects
within this funding category. If there are any unused CDBG funds from the prior FY 2016/17, the funds will be
added to the eligible CDBG capital housing project category. CDBG funding is proposed to be allocated on a
competitive basis.
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 low and/or very-low income. Targeted groups might include persons who are homeless, seniors, persons
with disabilities and other special needs groups.
Please visit the following link for a list of eligible CDBG capital housing project activities:
https://www.hudexchange.info/cdbg-entitlemenUcdbg-entitlement-program-eligibility-requirements/
Note: The above estimated CDBG dollar amounts may change based upon the final federal budget approved by Congress.
CDBG funding allocations are also subject to City Council approval.
Fundinq Source #2: Below Market Rate (BMR)Affordable Housinq Fund (AHF) Housinq Proiects:
The City estimates up to $10,000,000 will be available to fund eligible BMR AHF housing projects on a competitive
basis for FY 2017/18. 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. The City may award and
appropriate funds to one or more eligible projects within this funding category.
Proiect Requirements:
BMR AHF 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:
Page 1 of 3
➢ 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 BMR requirements and offer 99
years of affordability. An affordable regulatory agreement will be recorded against the property to ensure
affordability.
Eliqible Development Entities (DEs):
Eligible DEs include non-profit and for-profit organizations licensed to conduct business in the State of California.
• DEs must demonstrate credit worthiness, financial capacity, relevant past 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, Acquisition, rehabilitation and/or
predevelopment/construction construction
converting to permanent,
rehabilitation
Interest Rate: 3.0% simple interest 3.0% simple interest
Loan Term: 30 yrs. 30 yrs.
Affordabilit Term: 99 rs. 99 rs.
Security: Deed of Trust, Promissory Note and Deed of Trust, Promissory Note and
other regulatory agreements other regulatory agreements
recorded against the property as recorded against the property as
required by the City required by the City
Security Position: Will consider subordinating to a Will consider subordinating to a
construction or permanent lender construction or permanent lender
with City approval with City approval
Repayment Terms: Interest only. All outstanding interest Interest only. All outstanding interest
and principal will be due in full and and principal will be due in full and
payable on or by the maturity date payable on or by the maturity date
Timeframe: It is expected that projects must It is expected that projects must
roceed ex editiousl to construction roceed ex editiousl to construction
Financial Pro-Forma: Submit development financial pro- Submit development financial pro-
forma to be reviewed by City. forma to be reviewed by City.
Subject to review by third-party Subject to review by third-party
qualified consultant/organization to qualified consultant/organization to
determine reasonableness determine reasonableness
Environmental Conditions: All environmental conditions (EX: All environmental conditions (EX:
CEQA) that are applicable to an CEQA) that are applicable to an
eligible project must be satisfied eligible project must be satisfied
Project Conditions: Project may be subject to Planning Project may be subject to Planning
Commission and/or City Council Commission and/or City Council
approval prior to Deed of Trust, approval prior to Deed of Trust,
Promissory Note and other recorded Promissory Note and other recorded
regulatory agreements being regulatory agreements being
executed and disbursement of executed and disbursement of
funding being approved funding being approved
Page 2 of 3
Underwritinq 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 Procedural Manual and BMR Administrative Manual.
Note: BMR AHF dollar amounts are subject to City Council approval and may change as a result.
RFP Review Process:
Upon receipt of CDBG proposals, staff will conduct an initial review to determine whether a program and/or project
application is eligible and that the proposal is complete. The City reserves the right to send a written request to an
applicant requesting additional information.
After the RFP deadline has been completed, all eligible and complete CDBG program and/or project applications will
be forwarded to the City's Housing Commission for initial rating and ranking. The City's Housing Commission is a
five-member board appointed by the City Council and serves as the recommendation body to the City Council
regarding housing policies and funding recommendations. A Housing Commission public hearing will be held in
which the initial rating and ranking of eligible and complete CDBG program and/or project applications will occur.
After the Housing Commission has initially rated and ranked applications, the funding recommendations will be
forwarded to the City Council for final approval. A City Council public hearing will be held in which the final CDBG
and BMR AHF funding recommendations for fiscal year 2017/18 will be made.
Award Notification:
After the City Council has made the final funding recommendations, staff will notify organizations on whether or not
they were awarded funding through this RFP for fiscal year 2017/18.
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 an 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 or 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; 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.
Scorin Summa 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:
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 regarding this RFP please contact Kerri Heusler, Senior Housing Planner, at 408.777.3251 or
kerrih@cupertino.org. The RFP application period will open at 8:OOam on Friday, March 31, 2017. The RFP
application period will end at 5:OOpm on Tuesday, April 18, 2017. Any RFP application that does not meet the RFP
application deadline will not be accepted.
Note: All proposals are subject to the Conditions, Instructions and Specifications included in this RFP.
Applicants will be notified of upcoming meetings and public hearings to discuss the expenditure of
CDBG and BMR AHF funds.
Page 3 of 3
FY 2017/18 Housing FY 2017/18
Commission
Fiscal Year 2017/18 Est.FY 2017/18 FY 2017/18 Funding Est.Balance of FY 2016.
Available Funds After Fundin
Grant A lication Summar Funds Available Funding Requests Recommendations
PP y Funding Allocatic
as of May 11,2017
Recommendations
Meeting
CDBG Public Service Applications:
(Two-Year Funding Cycle,FY 2016/17&17/18)
Live Oak Adult Day Services-Senior Adult Day Care $ 15,098.00 $ 15,098.00 $ 15,
West Valley Community Services-Community Access to Resource and Education $ 32,090.00 $ 32,090.00 $ 32,
;CARE)
Sub-Total $ 47,330.00 $ 47,188.00 $ 47,188.00 $ - $ 47,
CDBG Capital/Housing Project Applications:
(One-Year Funding Cycle,FY 2017/18)
[�ebuilding Together Silicon Valley- Housing Repair and Rehabilitation Project $ 64,000.00 To Follow $ 60,
West Valley Community Services-Vista Village Renovation $ 300,000.00 To Follow $
Sub-Total $ 213,259.00 $ 364,000.00 $ - $ - $ 60,
CDBG Program Administration:
(One-Year Funding Cycle,FY 2017/18)
Administration $ 63,107.00 $ 63,107.00 $ - $ 62,
Sub-Total $ 63,107.00 $ 63,107.00 $ 63,107.00 $ - $ 62,
General Fund Human Service Grants(HSG)Applications:
(Two-Year Funding Cycle,FY 2016/17&17/18)
:atholic Charities of Santa Clara County-Long-Term Care Ombudsman $ 6,500.00 $ 6,500.00 $ 6,
Ylaitri-MTH Direct Client Services $ 23,400.00 $ 23,400.00 $ 23,
�enior Adults Le al Assistance-Le al Assitance to Elders $ 10,100.00 $ 10,100.00 $ 10,
Sub-Total $ 40,000.00 $ 40,000.00 $ 40,000.00 $ - $ 40,
Below Market-Rate(BMR)Affordable Housing Fund(AHF)Applications(Two-Year
Funding Cycle,FY 2016/17&17/18):
TBD-BMR Program Administration(Affordable Placement Program) $ 175,000.00 $ 175,000.00 $ 122,
Project Sentinel-Landlord/Tenant Rental Mediation $ 35,000.00 $ 35,000.00 $ 35,
Eden Council for Hope and Opportunity(ECHO)-Fair Housing Services $ 10,000.00 $ 10,000.00 $ 10,
West Valley Community Services-10311 &10321 Greenwood Court Renovation $ 160,000.00 $ 160,000.00 $ 160,
Pro ect
Sub-Total $ 380,000.00 $ 380,000.00 $ 327,
TOTAL $ 363,696.00 $ 894,295.00 $ 530,295.00 $ 537,
2017-18 CDBG,HSG,BMR AHF Funding Allocations
May 11,2017
Fiscal Year 2017-18 CDBG, HSG and BMR AHF
Grant Application Descriptions
Community Development Block Grant (CDBG) Public Service Grants:
Application 1a.
Name of Organization: Live Oak Adult Day Services
Name of Program: Senior Adult Day Care
Annual Goal: Serve 21 unduplicated frail, dependent, low-income
Cupertino seniors.
Program Description: Provides services for seniors at-risk of being
institutionalized. Provides specialized programs such as
recreation, mental stimulation, companionship and
nutritious meals to seniors.
Funding Request: $15,098
Housing Commission
Funding Recommendation: $15,098
Application 1b.
Name of Organization: West Valley Community Services (WVCS)
Name of Program: Community Access to Resource and Education (CARE)
Annual Goal: Serve a total of 100 unduplicated households by providing
case management and support services.
Program Description: The CARE program incorporates both case management and
wrap around services to help at-risk and vulnerable
household's mange crisis and provide stabilization to help
them move towards self-sufficiency. The target population
of the CARE program includes low-income seniors, families
with children, at-risk youth and adults. The CARE program
includes case management, access to food pantry and
emergency financial assistance.
Funding Request: $32,090
Housing Commission
Funding Recommendation: $32,090
Communitv Development Block Grant (CDBG) Capital Housin�Pro�ects:
Application 2a.
Name of Organization: Rebuilding Together Silicon Valley (RTSV)
Name of Project: Housing Repair and Rehabilitation Project
2017-18 CDBG,HSG,BMR AHF Funding Allocations
May 11,2017
Annual Goal: Repair homes to 7 unduplicated Cupertino households.
Project Description: Provide home safety repairs, mobility and accessibility
improvements with the primary consideration being the
correction of safety hazards.
Funding Request: $60,300
Housing Commission
Funding Recommendation: To Follow
Applicant 2b.
Name of Organization: West Valley Community Services (WVCS)
Name of Project: Vista Village Renovation Project
Annual Goal: Renovate 7 housing units.
Project Description: Renovate affordable housing complex with various repairs
and renovations. The renovation work will include but not
be limited to new flooring, kitchen counter tops, interior
painting, landing repairs, stairs and railing replacements,
landscaping, exterior lighting, driveway repairs and exterior
painting.
Funding
Request: $300,000
Housing Commission
Funding Recommendation: To Follow
General Fund Human Service Grants (HSG�
Application 4a.
Name of Organization: Catholic Charities of Santa Clara County
Name of Program: Long-Term Care Ombudsman
Annual Goal: Provide advocacy by contacting up to 224 unduplicated
residents, 48 unannounced visits to five Cupertino long-term
care facilities and investigate and resolve up to 16
complaints.
Program Description: Provide advocacy for Cupertino residents in long-term care
facilities to ensure they have a voice in their own care and
treatment. The program will receive, investigate and resolve
any complaints associated with the care of the long-term
care facility residents.
Funding Request: $6,500
Housing Commission
2017-18 CDBG,HSG,BMR AHF Funding Allocations
May 11,2017
Funding Recommendation: $6,500
Application 4b.
Name of Organization: Maitri
Name of Program: MTH—Direct Client Services
Annual GoaL• Maitri will provide transitional housing to 16 unduplicated
households.
Program Description: Provides transitional housing and related supportive
services to low-income victims of domestic violence who are
at high risk of becoming homeless and/or suffering further
abuse to themselves and their children.
Funding Request: $23,400
Housing Commission
Funding Recommendation: $23,400
Application 4c.
Name of Organization: Senior Adults Legal Assistance (SALA)
Name of Program: Legal Assistance to Cupertino Elders
Annual Goal: Serve 40 Cupertino seniors.
Program Description: Provides free legal services to low-income seniors at the
Cupertino Senior Center. Legal services provided are in the
area of consumer complaints,housing, elder abuse, and
simple wills.
Funding Request: $10,100
Housing Commission
Funding Recommendation: $10,100
Below Market-Rate (BMR) Affordable Housin Fund ,AHF�
Application 5a.
Name of Organization: Eden Council for Hope and Opportunity (ECHO)
Name of Program: Fair Housing Services
Annual Goal: Perform a total of 15 unduplicated fair housing investigative
cases and audits of suspected discrimination.
Program Description: Provide fair housing assistance throughout the City of
Cupertino, including conducting presentations, counseling
housing providers and investigating allegations of
discrimination.
Funding Request: $10,000
2017-18 CDBG,HSG,BMR AHF Funding Allocations
May 11,2017
Housing Commission
Funding Recommendation: $10,000
Application 5b.
Name of Organization: Project Sentinel
Name of Program: Landlord/Tenant Rental Mediation
Annual Goal: Intake 150 information and referral calls, open 40
landlord/tenant mediation cases and counse140 households.
Program Description: Provides information and dispute resolution services to
tenants, mobile home owners and landlords. Answers
questions and helps to resolve disputes such as deposits,
repairs, rent increases and nonpayment of rent. Provides free
counseling services.
Funding Request: $35,000
Housing Commission
Funding Recommendation: $35,000
Application 5c.
Name of Organization: TBD
Name of Program: BMR Program Administration (Affordable Placement
Program)
Annual Goal: Annually monitor existing 121 BMR ownership units,
annually income recertify 142 BMR rental units. Place new
affordable income households into either BMR for-sale or
rental units within the City of Cupertina Manage BMR
waiting list, monitor BMR units, perform orientations and
assist with marketing.
Program Description: Consultant assists with monitoring, screening and placement
services for the City of Cupertino's Below Market-Rate
(BMR) for-sale and rental housing units. Consultant
maintains a waiting list for qualified applicants and provides
services to those placed in the BMR affordable units.
Funding Request: $175,000
Housing Commission
Funding Recommendation: To Follow
2017-18 CDBG,HSG,BMR AHF Funding Allocations
May 11,2017
Applicant 5d.
Name of Organization: West Valley Community Services (WVCS)
Name of Project: 10311 & 10321 Greenwood Court Renovation
Annual Goal: Renovate 4 residential duplexes.
Project Description: Renovate current transitional housing units to make them
more suitable for future BMR rental housing. The
renovation work will include but not be limited to
replacement of kitchen cabinets, countertops, flooring, light
fixtures, doors and windows along with interior painting.
Funding
Request: $160,000
Housing Commission
Funding Recommendation: $160,000