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HC Packet 3-22-2018CITY OF CUPERTINO AGENDA HOUSING COMMISSION 9:00 AM 10300 Torre Avenue, City Hall Conference Room C Thursday, March 22, 2018 Special Meeting NOTICE IS HEREBY GIVEN that a special meeting of the Cupertino Housing Commission is hereby called for Thursday, March 22, 2018, commencing at 9:00 a.m., City Hall, Conference Room C, 10300 Torre Avenue, Cupertino, California. Said special meeting shall be for the purpose of conducting business on the subject matters listed below under the heading “Special Meeting”. Special Meeting ROLL CALL APPROVAL OF MINUTES 1.Subject: Draft Minutes of February 8, 2018 Recommended Action: Approve or modify the Draft Minutes of February 8, 2018 Draft Minutes of February 8, 2018 ORAL COMMUNICATIONS This portion of the meeting is reserved for persons wishing to address the commission on any matter 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 listed on the agenda WRITTEN COMMUNICATIONS PUBLIC HEARINGS 2.Subject: FY 2018-19 Community Development Block Grant (CDBG) Program, Below Market Rate (BMR) Affordable Housing Fund (AHF), General Fund Human Service Grants (HSG) Program funding allocations Page 1 March 22, 2018Housing Commission AGENDA Recommended Action: Conduct the Public Hearing to: 1. Adopt Resolution No. 18-02 recommending the FY 2018-19 CDBG, BMR AHF, and HSG funding allocations to City Council for final approval; 2. Set an annual limit of $50,000 for the BMR AHF public service fund starting in FY 2018-19; 3. Increase the General Fund allocation towards the HSG fund from $40,000 to an annual amount of $100,000 starting in FY 2018-19. Staff Report A - Draft Resolution No. 18-02 B - FY 2018-19 NOFA RFP C - 2018-19 CDBG, BMR, and HSG Grant Application Descriptions OLD BUSINESS NEW BUSINESS STAFF AND COMMISSION REPORTS ADJOURNMENT Page 2 March 22, 2018Housing Commission AGENDA 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 distributed 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. IMPORTANT NOTICE: Please be advised that pursuant to Cupertino Municipal Code 2.08.100 written communications sent to the Cupertino City Council, Commissioners or City 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’s website and kept in packet archives. You are hereby admonished not to include any personal or private information in written communications to the City that you do not wish to make public; doing so shall constitute a waiver of any privacy rights you may have on the information provided to the City. 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. Page 3 Housing Commission February 8, 2018 City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 (408) 777-3308 DRAFT MINUTES OF THE REGULAR MEETING OF THE HOUSING COMMISSION HELD ON February 8, 2018 ROLL CALL Commission Members present: Sue Bose, Chair John Zhao, Vice Chair Nina Daruwalla Commissioner Poonam Goyal, Commissioner Commission Members absent: Sanjiv Kapil, Commissioner Staff present: Kerri Heusler, Senior Housing Planner Benjamin Fu, Assistant Community Development Director Erick Serrano, Associate Planner APPROVAL OF MINUTES 1) Minutes of the September 14, 2017 Housing Commission meeting were approved as written. Commissioner Daruwalla made a motion and Commissioner Bose seconded the motion. APPROVE: Bose, Zhao, Daruwalla ABSENT: Kapil ABSTAIN: Goyal VOTE: 3-0-2 CEREMONIAL MATTERS AND PRESENTATIONS Commissioners welcomed Commissioner Goyal. 2) Election of Chair and Vice Chair for 2018. Commissioners selected Sue Bose as Chair. Commissioner Daruwalla made a motion and Commissioner Zhao seconded the motion. APPROVE: Bose, Zhao, Daruwalla, Goyal ABSENT: Kapil ABSTAIN: VOTE: 4-0-1 Commissioners selected John Zhao as Vice Chair. Chair Bose made a motion and Commissioner Daruwalla seconded the motion. 2 APPROVE: Bose, Zhao, Daruwalla, Goyal ABSENT: Kapil ABSTAIN: VOTE: 4-0-1 POSTPONEMENTS None ORAL COMMUNICATIONS None WRITTEN COMMUNICATIONS None PUBLIC MEETINGS 3) Amendment of Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units. Chair Bose opened the item. Staff member Heusler gave an overview of the updates to the Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units (Manual) and introduced staff from the City’s Below Market Rate (BMR) program administrator, Hello Housing. Matt Warner and Brook Baird attended on behalf of Hello Housing. Staff member Heusler and Hello Housing staff answered questions from the Commission on updated policies including credit score, terms of affordability, minimum income, and income limits. Commissioner Daruwalla made a motion and Commissioner Goyal seconded the motion. APPROVE: Bose, Zhao, Daruwalla, Goyal ABSENT: Kapil ABSTAIN: VOTE: 4-0-1 OLD BUSINESS None NEW BUSINESS Staff member Heusler announced the following dates: March 8- Housing Commission meeting cancelled March 22- Special Housing Commission meeting April 19- The Veranda Grand Opening STAFF AND COMMISSION REPORTS: Staff member Heusler announced that staff will present information on the Vallco specific plan at the April meeting. 3 Chair Bose plans to attend the monthly Mayor’s meeting and will coordinate with other Commissioners on available dates for others to attend. Staff member Heusler will work with the City Clerk’s office to provide Chair Bose with a list of meeting dates. ADJOURNMENT: The meeting was adjourned at 10:01am to the special Housing Commission meeting on March 22, 2018. Respectfully submitted: /s/Kerri Heusler Kerri Heusler Senior Housing Planner COMMUNITY DEVELOPMENT DEPARTMENT CITY HALL 10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3308 • www.cupertino.org HOUSING COMMISSION STAFF REPORT March 22, 2018 Subject FY 2018-19 Community Development Block Grant (CDBG) Program, Below Market Rate (BMR) Affordable Housing Fund (AHF), and General Fund Human Service Grants (HSG) Program funding allocations. Recommended Action Conduct Public Hearing; and 1. Adopt Resolution No. 18-02 recommending the FY 2018-19 CDBG, BMR AHF, and HSG funding allocations to City Council for final approval. 2. Set an annual limit of $50,000 for the BMR AHF public service fund starting in FY 2018-19. 3. Increase the General Fund allocation towards the HSG fund from $40,000 to an annual amount of $100,000 starting in FY 2018-19. Background An annual Notice of Funding Availability (NOFA) and Request for Proposals (RFP) was issued on December 11, 2017 inviting applicants to apply for CDBG, BMR AHF, and HSG funding allocations for the upcoming fiscal year (FY) 2018-19 (Attachment B). The NOFA / RFP deadline ended on February 16, 2018. Following the deadline the Housing Commission will hold a public hearing on March 22, 2018 to initially rate and rank applications. In December 2007, the City of Cupertino City Council approved a two-year grant funding cycle for CDBG, BMR AHF, and HSG public service grants. This two-year grant funding cycle covers FY 2018-19 and 2019-20. Agencies who are awarded in FY 2018-19 and who remain in good standing will receive a one-year contract amendment for FY 2019-20. CDBG and BMR AHF capital housing project applications will remain on a one-year funding cycle. The Housing Commission reviews BMR AHF and HSG applications at the same time as CDBG applications and makes funding recommendations to the City Council. If the City Council changes BMR AHF and/or HSG funding amounts for FY 2018-19 then each agency’s funding will be changed proportionately. Discussion CDBG Funding 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. Based on information currently being provided by HUD, cities have been notified that the level of CDBG funding will remain the same as last year. The City is estimating $311,943 in funds for the FY 2018-19 based on the CDBG entitlement amount of $311,943 from FY 2017-18. The City intends to reallocate $7,944 in program income from existing CDBG loan payoffs. Between the estimated FY 2018-19 entitlement grant and program income, the City estimates that it will have a total of approximately $319,887 of CDBG funds to utilize. CDBG funding amounts will be reduced or increased proportionately for FY 2018-19 based on final HUD allocation formula and City Council approval. In addition, the City put into place a CDBG Contingency Plan (Exhibit 1) because of the uncertainty in the federal budget and the revised timeline provided by HUD to submit the Action Plan. Of the estimated $319,887 (entitlement plus program income) for FY 2018-19, only 20%, or $63,977.40 may be used for administrative costs to cover salary and benefits of staff who operate the CDBG program. In addition, 15% of $319,887 or $47,983.05 may be used to fund eligible public service activities. The remaining 65% of the $319,887 or $207,926.55 is proposed to be used for eligible CDBG capital housing project activities for FY 2018-19. Est. FY 2018-19 CDBG Budget Est. FY 2018/19 Funds Available Entitlement Amount $311,943.00 Program Income FY 2017-18 $7,944.00 Sub-Total $319,887.00 Program Administration (20%)$63,977.40 Public Service (15%)$47,983.05 Capital/Housing Projects $207,926.55 Total $319,887.00 This is Cupertino’s sixteenth 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 2018-19 CDBG Capital Housing Funding Allocations (One-Year Funding Cycle, FY 2018-19) As noted earlier, a total of $207,926.55 is proposed to be used for eligible CDBG capital housing project activities. The City received three applications in this category totaling $304,000, an excess of $96,073.45. Staff is recommending funding the applications as noted in the table below. No. 2 FY 2018/19 CDBG Capital Housing Project Applications Est. Funds Available Funding Requests Funding Recommendations FY 2017/18 Funding Allocations a Rebuilding Together Silicon Valley- Housing Repair and Rehabilitation Project $64,000.00 $64,000.00 $64,000.00 b West Valley Community Services (WVCS)- Greenwood Court Renovation Project*/** $80,000.00 Recommended to be funded with BMR AHF Capital Housing funds $160,000.00 c WVCS- Vista Village Renovation Project* $160,000.00 $143,926.55 $167,823.20 Total $207,926.55 $304,000.00 $207,926.55 $231,823.20 *Submitted duplicate application for BMR AHF Capital Housing funds. **FY 2017-18: WVCS- Greenwood Ct. Renovation Project received BMR AHF funds. 2018-19 CDBG Public Service Funding Allocations (Two-Year Funding Cycle, FY 2018-19 & 2019-20) As noted earlier, a total of $47,983.05 is proposed to be used for eligible public service activities. Public service activities must benefit very low- and low-income households. The City received three applications in this category totaling $61,870, an excess of $13,886.95. Staff is recommending funding the applications as noted in the table below. No. 3 FY 2018/19 CDBG Public Service Applications Est. Funds Available Funding Requests Funding Recommendations FY 2017/18 Funding Allocations a Live Oak Adult Day Services - Senior Adult Day Care / Caregiver Respite $16,270.00 $16,270.00 $15,495.05 b Senior Adults Legal Assistance (SALA) - Legal Assistance to Elders* $10,600.00 Recommended to be funded with HSG funds c West Valley Community Services - Community Access to Resource and Education (CARE) $35,000.00 $31,713.05 $32,488.00 Total $47,983.05 $ 61,870.00 $47,983.05 $47,983.05 *Submitted duplicate application for HSG funds. Below Market Rate (BMR) Affordable Housing Fund (AHF) The BMR 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. Formal agreements and monitoring are required for this program, but the requirements are less stringent than federal funding. Staff is recommending that the City set an annual limit of $50,000 for the BMR AHF public service fund starting in FY 2018-19. The annual limit will be a consistent source of funding for public services while reserving funds for capital housing projects. BMR AHF Capital Housing Funding Allocations (One-Year Funding Cycle, FY 2018-19) The City estimates up to $6,000,000 will be available to fund eligible BMR AHF capital housing projects for FY 18-19 after accounting for administrative and other expenses. The City received two applications in this category totaling $240,000. Staff is recommending funding the applications as noted in the table below. No. 4 BMR AHF Capital Housing Project Applications Est. Funds Available Funding Requests Funding Recommendations FY 2017/18 Funding Allocations a WVCS- Greenwood Court Renovation Project* $80,000.00 $80,000.00 $160,000.00 b WVCS- Vista Village Renovation Project*/**$160,000.00 Recommended to be funded with CDBG Capital Housing funds $167,823.20 Total $6,000,000.00 $40,000.00 $80,000.00 $327,823.20 *Submitted duplicate application for CDBG Capital Housing funds. **FY 2017-18: WVCS- Vista Village Renovation Project received BMR AHF funds. BMR AHF Public Service Funding Allocations (Two-Year Funding Cycle, FY 2018-19 & 2019-20) Staff is recommending an annual allocation of $50,000 to fund eligible BMR AHF public service agencies. The City received two applications for fair housing services in this category totaling $53,000. In reviewing these two applications, Project Sentinel (Fair Housing and Tenant-Landlord Counseling and Dispute Resolution Services) already provides multiple services in Santa Clara County and this will allow them to expand in Cupertino. Based on these criteria and reviews from other jurisdictions, staff recommends funding Project Sentinel. Staff is recommending funding the applications as noted in the table below. No. 5 BMR AHF Public Service Applications: Est. Funds Available Funding Requests Funding Recommendations FY 2017/18 Funding Allocations a Eden Council for Hope and Opportunity (ECHO)- Fair Housing Services*** $10,000.00 Not recommended $10,000.00 b Project Sentinel - Fair Housing and Tenant- Landlord Counseling and Dispute Resolution Services $43,000.00 $43,000.00 $35,000.00 Total $50,000.00 $53,000.00 $43,000.00 $45,000.00 ***Staff recommends funding Project Sentinel for Fair Housing services. General Fund Human Service Grants (HSG) Program (Two-Year Funding Cycle, FY 2018-19 & 2019-20) 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 City received four applications in this category totaling $83,600, an excess of $43,600. The HSG fund amount was $100,000 in the past and was reduced to $40,000 during the economic downturn.Due to the expanding homeless crisis, staff has received multiple requests to include these services in our grant funding. It is expected that programs serving the homeless will be ongoing. Staff is therefore requesting an increase in the General Fund allocation towards the HSG fund from $40,000 to an annual amount of $100,000 starting in FY 2018-19. The approval of the WVCS (Haven to Home) application is contingent upon this increase. Staff is recommending funding the applications as noted in the table below. No. 5 General Fund HSG Applications Est. Funds Available Funding Requests Funding Recommendations FY 2017/18 Funding Allocations a Catholic Charities of Santa Clara County- Long-Term Care Ombudsman $8,000.00 $8,000.00 $6,500.00 b Maitri- MTH Direct Client Services $25,000.00 $25,000.00 $23,400.00 c SALA- Legal Assistance to Elders*$10,600.00 $10,600.00 $10,100.00 d WVCS- Haven to Home* *$40,000.00 $40,000.00 Total $100,000.00 $83,600.00 $83,600.00 $40,000.00 *Submitted duplicate application. **Contingent upon approval of increase in General Fund allocations to HSG fund. Analysis Attachment C provides the CDBG, BMR AHF, and HSG grant application descriptions. Process 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. All required HUD notices are published in the Cupertino Courier newspaper in advance announcing upcoming CDBG public hearings. Prepared by:Reviewed & Approved by: /s/ Kerri Heusler /s/ Benjamin Fu Kerri Heusler Benjamin Fu Senior Housing Planner Assistant Community Development Director Attachments: A- Draft Resolution No. 18-02 B- FY 2018-19 NOFA / RFP C- 2018-19 CDBG, BMR AHF, and HSG Grant Application Descriptions RESOLUTION NO. 18-02 A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CUPERTINO RECOMMENDING APPROVAL OF THE 2018-19 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG), BELOW MARKET-RATE (BMR) AFFORDABLE HOUSING FUND (AHF), AND GENERAL FUND HUMAN SERVICE GRANTS (HSG) PROGRAM AND 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 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 $311,943 CDBG entitlement grant from the United States Department of Housing and Urban Development (HUD) to be allocated for fiscal year (FY) 2018-19; and WHEREAS, the City of Cupertino estimates allocating $7,944 in CDBG program income for FY 2018-19; and WHEREAS, the City of Cupertino is required to submit a FY 2018-19 CDBG Annual Action Plan to HUD for review and approval prior to being allowed to expend CDBG funds for FY 2018-19; and WHEREAS, the City of Cupertino put into place a CDBG Contingency Plan (Exhibit 1) because of the uncertainty in the federal budget and the revised timeline provided by HUD to submit the Action Plan; and BE IT FURTHER RESOLVED that the Housing Commission of the City of Cupertino hereby recommends approval of the FY 2018-19 CDBG, BMR AHF, and HSG recommended funding allocations (Exhibit 2) to the City Council for final adoption; and BE IT FURTHER RESOLVED that the FY 2018-19 CDBG, BMR AHF, and HSG recommended grant funding allocations will be decreased/increased based on final budget allocations by HUD and the City Council. BE IT FURTHER RESOLVED that the City of Cupertino will set an annual limit of $50,000 for the BMR AHF public service fund starting in FY 2018-19; and 2 BE IT FURTHER RESOLVED that the City of Cupertino will increase the General Fund allocation towards the HSG fund from $40,000 to an annual amount of $100,000 starting in FY 2018-19. PASSED AND ADOPTED at a regular meeting of the Housing Commission of the City of Cupertino this 22nd day of March, 2018 by the following vote: Vote Members of the Housing Commission AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: /s/Kerri Heusler /s/ Sue Bose Kerri Heusler Sue Bose Senior Housing Planner Chair, Housing Commission 3 Exhibit 1 CDBG Contingency Plan In the case of funding increase, the following plan is recommended:  Public Services ($47,983.05): Distribute the additional available amount in the public services cap until an applicant is fully funded. If an applicant reaches the funding amount requested, any remaining funds will be distributed to other applicants who have not yet reached the maximum funding amount.  Administration ($63,977.40): Funds are to be allocated to the City of Cupertino for CDBG administration. General Fund allocation will be reduced accordingly.  Capital/Housing Projects ($207,926.55): Distribute the additional available amount in the capital/housing projects cap until an applicant is fully funded. If an applicant reaches the funding amount requested, any remaining funds will be distributed to other applicants who have not yet reached the maximum funding amount. In the case of a funding decrease, the following plan is recommended:  Public Services ($47,983.05): Distribute any funding decrease proportionately among the remaining public service applicants, but maintain a minimum funding allocation of $15,000 for any applicant to the extent feasible.  Administration ($63,977.40): Any decrease in funding will be supplemented by the General Fund for CDBG administration.  Capital/Housing Projects ($207,926.55): Any decrease in funding may be supplemented wholly or partially based on funding available, by the Below Market Rate (BMR) Affordable Housing Fund (AHF) for CDBG capital/housing projects. 4 Exhibit 2 FY 2018-19 Funding Allocations Exhibit C- 2018-19 CDBG, BMR AHF, and HSG Grant Application Summary No. FY 2018/19 Grant Application Summary Est. Funds Available Funding Requests Funding Recommendations FY 2017/18 Funding Allocations 1 CDBG Program Administration: $63,977.40 $63,977.40 $63,977.40 Sub-Total $63,977.40 $63,977.40 $63,977.40 $63,977.40 2 CDBG Capital/Housing Project Applications a Rebuilding Together Silicon Valley- Housing Repair and Rehabilitation Project $64,000.00 $64,000.00 $64,000.00 b West Valley Community Services (WVCS) - Greenwood Court Renovation Project* $80,000.00 Recommended to be funded with BMR AHF Capital Housing funds c WVCS - Vista Village Renovation Project* $160,000.00 $143,926.55 $167,823.20 Sub-Total $207,926.55 $304,000.00 $207,926.55 $231,823.20 3 CDBG Public Service Applications a Live Oak Adult Day Services- Senior Adult Day Care / Caregiver Respite $16,270.00 $16,270.00 $15,495.05 b Senior Adults Legal Assistance (SALA)- Legal Assistance to Elders* $10,600.00 Recommended to be funded with HSG funds c WVCS- Community Access to Resource and Education $35,000.00 $31,713.05 $32,488.00 Sub-Total $47,983.05 $61,870.00 $47,983.05 $47,983.05 4 BMR AHF Capital Housing Project Applications a WVCS- Greenwood Court Renovation Project* $80,000.00 $80,000.00 $160,000.00 5 b WVCS - Vista Village Renovation Project* $160,000.00 Recommended to be funded with CDBG Capital Housing funds $167,823.20 Sub-Total $6,000,000.00 $240,000.00 $80,000.00 $327,823.20 5 BMR AHF Public Service Applications a Eden Council for Hope and Opportunity (ECHO)- Fair Housing Services*** $10,000.00 Not recommended $10,000.00 b Project Sentinel - Fair Housing and Tenant- Landlord Counseling and Dispute Resolution Services $43,000.00 $43,000.00 $35,000.00 Sub-Total $50,000.00 $53,000.00 $43,000.00 $45,000.00 6 General Fund HSG Applications a Catholic Charities of Santa Clara County- Long-Term Care Ombudsman $8,000.00 $8,000.00 $6,500.00 b Maitri- MTH Direct Client Services $25,000.00 $25,000.00 $23,400.00 c SALA- Legal Assistance to Elders* $10,600.00 $10,600.00 $10,100.00 d WVCS- Haven to Home** $40,000.00 $40,000.00 Sub-Total $100,000.00 $83,600.00 $83,600.00 $40,000.00 TOTAL $6,469,887.00 $806,447.40 $446,487.00 $756,606.85 *Submitted duplicate application. **Contingent upon approval of increase in General Fund allocations to HSG fund. *** Staff recommends funding Project Sentinel for Fair Housing Services. Page 1 of 4 City of Cupertino Notice of Funding Availability (NOFA) and Request for Proposals (RFP) Issued: December 11, 2017 Deadline: February 16, 2018 The City of Cupertino has issued the fiscal year (FY) 2018/19 Notice of Funding Availability (NOFA) and Requests for Proposals (RFP). The City is requesting proposals for eligible public service programs, human service programs, and capital housing projects to be funded under the Below Market Rate (BMR) Affordable Housing Fund (AHF), Community Development Block Grant (CDBG) Program, and General Fund Human Services Grants (HSG). The City may award and appropriate funds to one or more eligible projects in each funding category. The estimated CDBG dollar amounts may change based upon the final federal budget approved by Congress. BMR AHF, CDBG, and HSG allocations are subject to City Council approval and may change as a result. The following funding sources below are on a one-year grant funding cycle which will cover FY 2018/19 only. 1. BMR AHF Capital Housing Projects 2. CDBG Capital Housing Projects The following funding sources below are on a two-year grant funding cycle which will cover FY 2018/19 & FY 2019/20. 1. BMR AHF Public Services 2. CDBG Public Services 3. HSG Program Funding Source #1: Below Market Rate (BMR) Affordable Housing Funds (AHF):  BMR AHF Capital Housing Projects (FY 18/19): The City estimates up to $6,000,000 will be available to fund eligible BMR AHF capital housing projects on a competitive basis for FY 18/19. 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. (Note: One-year funding cycle for FY 18/19.) Project 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:  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. Page 2 of 4 Eligible 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, 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 Interest only. All outstanding interest and principal will be due in full and payable on or by the maturity date 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: Page 3 of 4 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.  BMR AHF Public Services (FY 18/19 and 19/20): The City estimates up to $50,000 will be available to fund eligible BMR AHF public service programs on a competitive basis for FY 18/19. BMR AHF funds 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 programs include tenant/landlord dispute resolution, fair housing programs, and other programs serving low and/or moderate-income households. (Note: Two-year funding cycle for FY 18/19 and 19/20.) Funding Source #2: Community Development Block Grant (CDBG): The City of Cupertino estimates receiving approximately $311,000 in CDBG program entitlement funds from the United States Department of Housing and Urban Development (HUD) for FY 18/19. If there are any unused CDBG funds from the prior FY 17/18, the funds will be added to the eligible CDBG capital housing project category. CDBG funding is proposed to be allocated on a competitive basis.  CDBG Capital Housing Projects (FY 18/19): The City estimates allocating up to $210,000 in funding for eligible CDBG capital housing projects on a competitive basis for FY 18/19. 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 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. (Note: One-year funding cycle for FY 18/19.) Please visit the following link for a list of eligible CDBG capital housing project activities: https://www.hudexchange.info/cdbg-entitlement/cdbg-entitlement-program-eligibility-requirements/  CDBG Public Services (FY 18/19 and 19/20): The City estimates allocating up to $48,000 in funding for eligible CDBG public service programs on a competitive basis for FY 18/19. CDBG public service funds must be used to serve low-income households within the City of Cupertino jurisdiction limits. (Note: Two-year funding cycle for FY 18/19 and 19/20.) Funding Source #3: General Fund Human Service Grants (HSG) Program (FY 18/19 and 19/20): The City estimates allocating up to $40,000 in funding for eligible HSG programs on a competitive basis for FY 18/19 and 19/20. HSG funds must be used to serve low and/or moderate-income households within the City of Cupertino jurisdiction limits. (Note: Two-year funding cycle for FY 18/19 and 19/20.) Eligible HSG programs may include, but not be limited to:  Senior services  Homeless services  Other services that serve low and/or moderate-income households 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. Page 4 of 4 After the RFP deadline has been completed, all eligible and complete 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 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 BMR AHF, CDBG, and HSG funding recommendations for FY 18/19 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 FY 18/19. 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 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; 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: 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 Kerri Heusler, Senior Housing Planner, at kerrih@cupertino.org or 408.777.3251. The RFP application period will open at 8:00am on Monday, December 11, 2017. The RFP application period will end at 5:00pm on Friday, February 16, 2018. 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 RFP. Applicants will be notified of upcoming meetings and public hearings to discuss the expenditure of BMR AHF, CDBG, and HSG funds. Page 1 of 5 Exhibit C- 2018-19 CDBG, BMR AHF, and HSG Grant Application Descriptions Community Development Block Grant (CDBG) Capital Housing Projects: Application 2a. Name of Organization: Rebuilding Together Silicon Valley (RTSV) Name of Project: Housing Repair and Rehabilitation Project Annual Goal: Renovate four housing units and provide 28 repairs Project Description: Provide home safety repairs, mobility and accessibility improvements with the primary consideration being the correction of safety hazards. Funding Request: $64,000 Housing Commission Funding Recommendation: To Follow Applicant 2b. Name of Organization: West Valley Community Services (WVCS) Name of Project: Greenwood Court Renovation Project Annual Goal: Complete renovation of four housing units Project Description: Complete renovation of affordable housing complex with various repairs and renovations. The renovation work will include but not be limited to replacing the heating in units 1 and 2, convert all units to centralized heating, landscaping, repair and restore laundry room, and repair trash enclosure. Funding Request: $80,000 Housing Commission Funding Recommendation: To Follow Applicant 2c. Name of Organization: WVCS Name of Project: Vista Village Renovation Project Annual Goal: Renovate six housing units Project Description: Renovate affordable housing complex with various repairs and renovations. The renovation work will include but not be limited to laminate flooring, painting, new kitchen counter tops, cabinets, and replacing old carpet. Funding Page 2 of 5 Request: $160,000 Housing Commission Funding Recommendation: To Follow Community Development Block Grant (CDBG) Public Service Grants: Application 3a. Name of Organization: Live Oak Adult Day Services Name of Program: Senior Adult Day Care / Caregiver Respite 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, exercise, companionship and nutritious meals to seniors. Funding Request: $16,270 Housing Commission Funding Recommendation: To Follow Application 3b. 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 assistance to low-income seniors (60 or older) at the Cupertino Senior Center and by phone. Legal services provided are in the area of consumer complaints, housing, elder abuse, and simple wills. Funding Request: $10,600 Housing Commission Funding Recommendation: To Follow Application 3c. Name of Organization: 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 Page 3 of 5 with children, at-risk youth and adults. The CARE program includes case management, access to food pantry and emergency financial assistance. Funding Request: $35,000 Housing Commission Funding Recommendation: To Follow Below Market-Rate (BMR) Affordable Housing Fund (AHF) Capital Housing Projects: Application 4a. Name of Organization: WVCS Name of Project: Greenwood Court Renovation Project Annual Goal: Complete renovation of four housing units Project Description: Complete renovation of affordable housing complex with various repairs and renovations. The renovation work will include but not be limited to replacing the heating in units 1 and 2, convert all units to centralized heating, landscaping, repair and restore laundry room, and repair trash enclosure. Funding Request: $80,000 Housing Commission Funding Recommendation: To Follow Applicant 4b. Name of Organization: WVCS Name of Project: Vista Village Renovation Project Annual Goal: Renovate six housing units Project Description: Renovate affordable housing complex with various repairs and renovations. The renovation work will include but not be limited to laminate flooring, painting, new kitchen counter tops, cabinets, and replacing old carpet. Funding Request: $160,000 Housing Commission Funding Recommendation: To Follow BMR AHF Public Services: Application 5a. Name of Organization: Eden Council for Hope and Opportunity (ECHO) Name of Program: Fair Housing Services Page 4 of 5 Annual Goal: Perform a total of 15 unduplicated fair housing investigative cases and audits of suspected discrimination. Program Description: Provide fair housing assistance throughout Cupertino, including conducting presentations, counseling housing providers, and investigating allegations of discrimination. Funding Request: $10,000 Housing Commission Funding Recommendation: To Follow Application 5b. Name of Organization: Project Sentinel Name of Program: Fair Housing and Tenant-Landlord Counseling and Dispute Resolution Services Annual Goal: Intake 100 information and referral calls, open 35 fair housing and tenant-landlord mediation cases. Program Description: Provides fair housing services to address illegal housing discrimination. 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: $43,000 Housing Commission Funding Recommendation: To Follow General Fund Human Service Grants (HSG): Application 6a. Name of Organization: Catholic Charities of Santa Clara County Name of Program: Long-Term Care Ombudsman Annual Goal: Provide advocacy by contacting up to 513 unduplicated residents, 58 unannounced visits to five Cupertino long-term care facilities, and investigate and resolve up to nineteen 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: $8,000 Housing Commission Page 5 of 5 Funding Recommendation: To Follow Application 6b. Name of Organization: Maitri Name of Program: MTH – Direct Client Services Annual Goal: Maitri will provide transitional housing to seventeen 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: $25,000 Housing Commission Funding Recommendation: To Follow Application 6c. 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 assistance to low-income seniors (60 or older) at the Cupertino Senior Center and by phone. Legal services provided are in the area of consumer complaints, housing, elder abuse, and simple wills. Funding Request: $10,600 Housing Commission Funding Recommendation: To Follow Application 6c. Name of Organization: WVCS Name of Program: Haven to Home Annual Goal: Serve 50 homeless individuals/families Program Description: Help currently un-housed Cupertino individuals/families secure permanent housing, maintain employment, and enhance income opportunities and financial stability. Funding Request: $40,000 Housing Commission Funding Recommendation: To Follow