Loading...
HC Packet 12-13-2018CITY OF CUPERTINO AGENDA HOUSING COMMISSION 9:00 AM 10300 Torre Avenue, City Hall Conference Room C Thursday, December 13, 2018 ROLL CALL APPROVAL OF MINUTES 1.Subject: Draft Minutes of June 14, 2018 Recommended Action: approve or modify the Draft Minutes of June 14, 2018 Draft Minutes of June 14, 2018 2.Subject: Draft Minutes of September 13, 2018 Recommended Action: approve or modify the Draft Minutes of September 13, 2018 Draft Minutes of September 13, 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 OLD BUSINESS NEW BUSINESS 3.Subject: Santa Clara County Regional Housing Needs Allocation (RHNA) subregion formation. Page 1 December 13, 2018Housing Commission AGENDA Recommended Action: That the Housing Commission recommend that the City Council authorize the City Manager to: 1. Enter into discussions related to the formation of a Santa Clara County RHNA subregion and develop a work plan, budget and schedule of actions leading to the formation of a countywide RHNA subregion for trading housing needs allocation by consensus and 2. Present a recommendation on whether or not to participate in the RHNA subregion upon further study and discussions. Tentative City Council hearing date: January 15, 2019 Staff Report 1 - Draft Resolution 2 - RHNA subregion overview 3 - Pros and Cons STAFF AND COMMISSION REPORTS ADJOURNMENT Page 2 December 13, 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 City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 (408) 777-3308 DRAFT MINUTES OF THE REGULAR MEETING OF THE HOUSING COMMISSION HELD ON June 14, 2018 ROLL CALL Commission Members present: Sue Bose, Chair John Zhao, Vice Chair Nina Daruwalla, Commissioner Sanjiv Kapil, Commissioner Commission Members absent: Poonam Goyal, Commissioner Staff present: Erick Serrano, Associate Planner Benjamin Fu, Assistant Community Development Director Chair Bose opened the meeting at 9:05am. APPROVAL OF MINUTES 1. Minutes of the April 12, 2018 Housing Commission meeting were approved as written. Commissioner Zhao made a motion and Commissioner Kapil seconded the motion. APPROVE: Bose, Kapil, Zhao ABSENT: Goyal ABSTAIN: Daruwalla VOTE: 3-0-2 (Daruwala abstain, Goyal absent) ORAL/WRITTEN COMMUNICATIONS None PUBLIC HEARING 2. 2018-19 Community Development Block Grant (CDBG) Annual Action Plan Chair Bose opened the item. Staff member Serrano gave an overview on the 2018-19 CDBG Annual Action Plan. Staff member Serrano explained that the City was not notified of the funding allocation until May, where the funding is typically made available in January or February. Staff explained how funding allocation was appropriated into groups such as Public Service Grants, Administrative and Capital/Housing Projects. Commissioner Daruwalla asked about the amount of money spent on staff. Staff indicated that 20% of the funds is based on the CDBG program, and pays for staffing and consultants. Commissioner Kapil asked if any of the CDBG funds go it the City’s Below Market Rate (BMR) funds, and why BMR funds are mentioned in the report. Staff informed the Commission that the no BMR funds come from the 2 CDBG, but that BMR funds are mentioned because the Department of Housing and Urban Development likes to be informed on how city resources are leveraged. No comments were provided by the public. APPROVE: Bose, Zhao, Daruwalla, Kapil ABSENT: Goyal ABSTAIN: none VOTE: 4-0-1 (Goyal absent) OLD BUSINESS None NEW BUSINESS None STAFF AND COMMISSION REPORTS: Chair Bose attended the monthly Mayor’s meeting and provided a report. ADJOURNMENT: The meeting was adjourned at 9:53 am to the next regularly scheduled Housing Commission meeting. Respectfully submitted: /s/Erick Serrano Erick Serrano Associate Planner City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 (408) 777-3308 DRAFT MINUTES OF THE REGULAR MEETING OF THE HOUSING COMMISSION HELD ON September 13, 2018 ROLL CALL Commission Members present: John Zhao, Vice Chair Nina Daruwalla, Commissioner Poonam Goyal, Commissioner Sanjiv Kapil, Commissioner Commission Members absent: Sue Bose, Chair Staff present: Erick Serrano, Associate Planner Vice Chair Zhao opened the meeting at 9:05am. APPROVAL OF MINUTES 1. Draft Minutes of August 9, 2018 The Draft Minutes of August 9, 2018 were approved as amended ORAL/WRITTEN COMMUNICATIONS None PUBLIC HEARING 2. Subject: 2017-18 Community Development Block Grant (CDBG) Consolidated Annual Performance and Evaluation Report (CAPER) Recommended Action: Conduct the Public Hearing and Adopt Draft Resolution #18-05 approving the 2017-18 CDBG CAPER Discussion summary: Housing Consultant for staff, Colleen Lopez, reviewed the Staff Report and answered questions from the Commissioners. Commissioner Kapil had questions regarding the total for CDBS Public Services. Housing Consultant staff provided clarification on the total, and indicating that administration is 20% of the amount. Commissioner Kapil question how money was distributed to regarding to units at Vista Village. Staff indicated that the money went to units that were of the highest need first. 2 Commissioners asked questions regarding outreach. Staff indicated that the City has processes on how to distribute information. Vice Chair Zhao opened the public comment period, but no comments were give. Vice Chair Zhao then closed the public comment period The Commissioners discussed the draft Community Development Block Grant (CDBG) Consolidated Annual Performance and Evaluation Report (CAPER). They made no changes to the draft and recommended its submission to HUD Motioned: Com. Daruwalla, Second: Com. Goyal APPROVE: Goyal, Daruwalla, Kapil ABSENT: Bose, ABSTAIN: none VOTE:4-0-0 (Bose absent) OLD BUSINESS None NEW BUSINESS None STAFF AND COMMISSION REPORTS: None ADJOURNMENT: The meeting was adjourned at 10:15am to the next regularly scheduled Housing Commission meeting. Respectfully submitted: /s/Erick Serrano Erick Serrano Associate Planner 394\20\2415540.1 HOUSING COMMISSION STAFF REPORT Meeting Date: December 13, 2018 Subject Santa Clara County Regional Housing Needs Allocation (RHNA) subregion formation. Recommended Action That the Housing Commission adopt the Draft Resolution (Attachment 1) recommend that the City Council authorize the City Manager to: 1. Enter into discussions related to the formation of a Santa Clara County RHNA subregion and develop a work plan, budget and schedule of actions leading to the formation of a countywide RHNA subregion for trading housing needs allocation by consensus and 2. Present a recommendation on whether or not to participate in the RHNA subregion upon further study and discussions. Discussion Background The process of setting targets for housing growth, a necessary precursor to updating Housing Elements, is called the Regional Housing Needs Allocation (RHNA). The state mandates that different California regions begin their eight- year housing planning cycle on a staggered basis identified by the Department of Housing and Community Development (HCD). HCD determines housing demand for the state and subsequently, allocates this housing demand by region upon consultation with the regional Council of Governments (COG). The COG for each region then plans for this demand by distributing the need among all of its constituent cities and counties. By law, the methodology the COG uses to allocate the housingmust comply with State policy objectives in the Government Code and be adopted through a fair and open public process. 394\20\2415540.1 The task of allocating the housing need among the nine county San Francisco Bay Area falls to the Association of Bay Area Governments/Metropolitan Transportation Commission (ABAG/MTC). Once each jurisdiction receives its final RHNA, they must amend their Housing Element to show how it plans to accommodate the growth allocation, including identifying and zoning sites appropriately, according to state law requirements. Cupertino’s next Housing Element update is expected in 2022 with the housing allocation process occurring in 2021. State law allows the formation of subregions to conduct an allocation process parallel to, but separate from, the regional COG process. Jurisdictions that have not been satisfied with housing allocation occurring at the geographically larger regional level (COG) have formed their own RHNA subregions to develop their own methodology and allocate housing in a more locally relevant regional level. In the subregional process, the COG assigns a percentage of the region's total housing need to the subregion. The subregion is then able to allocate the RHNA to its members using its own methodology, provided that the subregion's methodology is consistent with the objectives listed in Government Code section 65584(d) and follows the state-mandated public process for assigning allocations or could accept the allocation assigned by the COG and then determine whether there are any local trades may be conducted. The most important specific limitation is that every city and county must be assigned at least some very low and low-income units under Government Code section 65584.04(i)(2). Once a subregion arrives at a final allocation, including any trades between member jurisdictions, the subregional allocations must be submitted to the COG for approval, and the COG retains the ability to modify the allocations, if necessary, to meet state law requirements. In the ABAG/MTC region, of which Cupertino is a part, subregions were formed in Napa, San Mateo and Solano counties for the 2015-2023 RHNA cycle. The jurisdictions in these subregions worked together to allocate their housing allocation based on local factors, and ABAG/MTC approved agreed-upon distribution. As an example, in the fifth Housing Cycle, of the 21 jurisdictions in the San Mateo subregion, seven jurisdictions did not see any changes to their COG allocated RHNA allocations, nine jurisdictions had a reduction in their RHNA allocations and 5 jurisdictions had an increase. In most cases, jurisdictions that were willing to accept more units did so because they had already contemplated the development of a higher number of units in their adopted general plan. Several jurisdictions in the Santa Clara county expressed their concerns with the regional housing allocation process from the prior housing planning cycle to the 394\20\2415540.1 Cities Association of Santa Clara County1; as a result of which, in the interests of improving the implementation of housing in a more locally relevant regional manner, the Board adopted the exploration of a Santa Clara County RHNA subregion as a priority for the upcoming RHNA cycle (2023 - 2031.) To that end, the Board approved the formation of a Regional Housing Task Force/Subcommittee in 2015 to: 1. Develop of a framework and process needed to form and implement a subregion in Santa Clara County for the next RHNA cycle (2023 – 2031); and 2. Review potential options for further regional response. The Subcommittee presented its findings at the June 14, 2018 Cities Association Board meeting and requested board members to take the topic of a subregion back to each individual City Council for discussion prior to the Board’s vote on the formation of a subregion. The City Council reviewed this item at its August 21, 2018 meeting and had the following comments: Concern that Metropolitan Transportation Commission (MTC) and Association of Bay Area Governments (ABAG) are heavily weighted toward big cities; Big cities are championing business impact fees that are levied regionally but passed on to cities that generate more housing, so big cities would receive more money since they have more developable land; With subregions, larger cities would be motivated to force more allocation on job rich cities at the regional level (MTC/ABAG) and expect allocation trading in exchange for financial consideration at the subregional level; Right way to allocate housing is objective needs for each City of Cupertino; Wary of allocation trading; Need to have vote on regional body, so proceed, but make sure staff gets answers to questions such how does a city consent to an increase in allocation (is it a majority vote or super majority vote)?; Keep autonomy over any increases in allocation. Following input from all the jurisdictions in the Santa Clara County, at its October 11, 2018 meeting, the Cities Association Board voted unanimously to establish a subregion. The subregion Task Force will be reconvened to oversee the RHNA subregion formation process. 1 The Cities Association of Santa Clara County was formed in 1990 to represent the mutual interests of the diverse fifteen cities of Santa Clara County. The Cities Association presents a unified (and equal) voice to other agencies, organizations, and levels of government. 394\20\2415540.1 Analysis The Regional Housing Task Force/Subcommittee presented a number of items for the Board’s consideration in June and October 2018. These include an overview of the RHNA subregion (see Attachment 2,) and pros and cons of forming a RHNA subregion (Attachment 3.) Overview:Subregions may be formed between any two jurisdictions but must include a county. A subregion is allowed to develop its own methodology, issue draft allocations to member jurisdictions, conduct the revision and appeal processes, and issue final allocations. Each subregion is also required to ensure that its final housing allocation is consistent with the Bay Area's Sustainable Communities Strategy.2 For purposes of this RHNA subregion, the Cities Association is not proposing to change the methodology for determining the allocation. The subregion would allow cities the opportunity to make mutual agreements with cities in the subregion to trade allocations, provided such agreements are consistent with State-defined objectives and that each jurisdiction retain at least some allocation of units for low- and very low income households. Cities can choose not to make any agreements and simply accept the regional allocation. However, being a member of the subregion would allow each city a vote in the final subregional RHNA allocation. If a city chooses not to be a part of the subregion, they would neither have the opportunity to trade allocations nor have a vote in the proposed trades and allocations within the subregion. Proposed Structure:The SC county RHNA subregion could consist of one member of each City Council and one member of the County Board of Supervisors. The final structure of the subregion would be part of the discussions the City Manager would be involved in. Several standing committees that would assist in the goals of the RHNA subregion could be established. These could include the: Policy Committee – elected officials provide policy direction, review the Technical Advisory Committee recommendations and adopt policy consensus for transmittal for cities and counties for ratification; 2 The Sustainable Communities Strategy or SCS is a state-mandated, integrated long-range transportation and land use plan. Required by Senate Bill 375, all metropolitan regions in California must complete a SCS as part of a Regional Transportation Plan. In the Bay Area, ABAG/MTC is responsible for developing and adopting a SCS that integrates transportation, land use and housing to meet greenhouse gas reduction targets set by the California Air Resources Board (CARB). The most recent SCS for the San Francisco Bay Area is the Plan Bay Area 2040, updated last in 2017. 394\20\2415540.1 Technical Advisory Committee – Senior staff technical experts in the field of housing and land use from each jurisdiction to develop recommendations for the City Manager’s Association to consider; City Managers Association – monthly outreach through the City Manager’s Association to allow ongoing input and consideration of the Technical Advisory Committee recommendations, prior to approval of the final by the Policy Committee; City Councils and Board of Supervisors – Ratify the final allocation; and ABAG – Final approval of the RHNA Final Allocation. Pros and Cons:The Subcommittee identified several advantages of forming a RHNA subregion. These are attached as Attachment 3 and include: Allowing jurisdictions flexibility and an opportunity for them to trade RHNA allocations. For e.g., notwithstanding the subregions allocation, a city could choose to accept the regional allocation or choose to make agreements with cities in the subregion for trading allocations. Empowering cities to have a say in regional planning. For e.g. should a city’s appeal on their regional allocation get upheld, it is up to ABAG/MTC to decide how to redistribute the appealed allocation. However, with a subregion, a city can trade allocations with another city. Allow cities to collaborate on better planned development since they can work together to address regional issues such as transit and would not necessarily be confined by a city boundary. Create a forum to discuss sharing of planning resources. For e.g. in the San Mateo subregion, all 21 jurisdictions share in the cost to pay a consultant to assist in the preparation of their housing elements and data needs. It also identified disadvantages of the formation of a subregion, which include: Putting in time, effort and resources and ending up with the same result as the regional allocation. Lack of trust for a fair and equitable process. Loss of political distance from ABAG/MTC which may result in pressure on the community to produce additional housing. No role model since no other existing subregion has such large variance in population in each of the cities. Impact of new housing laws:Recent and proposed changes to housing laws may also impact the effect of subregions in future housing cycles. For example, SB 166 was adopted in 2017 to require jurisdictions to make specific findings or upzone additional property if development on housing element sites is proposed and/or 394\20\2415540.1 approved at different affordability levels than are shown in the housing element's inventory. This requirement may make jurisdictions more hesitant to accept additional lower income RHNA allocations than they have been previously, because there are greater consequences of not approving housing for lower- income households. Other 2017 changes in housing element law have increased the standards for designating acceptable sites to accommodate housing development, so even if a jurisdiction wants to accept a higher allocation of RHNA, it may not have adequate sites available to do so. Finally, two bills signed by the Governor in September 2018, AB 1771 and SB 828, give HCD additional review authority over regional and subregional allocations and, in general, would assign more units to high-income, high-job cities.If these bills are adopted, it could further impact potential subregional processes in Santa Clara County and throughout the state, particularly in job-rich cities. In addition to these recently adopted laws, future laws could also severely impact cities ability to negotiate trades. These and other issues will be discussed and evaluated by the City Manager in presenting staff’s recommendation at a later date. What are other cities doing?: The following table indicates responses from other jurisdictions in Santa Clara County based on a table presented to the Cities Association Board in early October 2018: Jurisdiction Action Notes/Comments Campbell Yes Gilroy Yes Methodology should be based on the goals of Plan Bay Area All cities must accept equitable share of the allocation Los Altos Yes Los Altos Hills Yes Signed Resolution Los Gatos Yes Milpitas n/a Will discuss in November Monte Sereno Yes Morgan Hill Yes Signed Resolution Mountain View Yes Signed Resolution Palo Alto Yes San Jose Yes Santa Clara Yes Signed Resolution Saratoga Yes 394\20\2415540.1 Jurisdiction Action Notes/Comments Sunnyvale n/a City Manager says open to conversation but no item has been agendized on this issue since first request to do so sent in July 2018. Response to Grand Jury report, Density is our Destiny,said RHNA sug-region would not be implemented and is unrealistic by end of 2019 Santa Clara County n/a To be discussed in December 2018 Fiscal Impact It is expected that there will be costs associated with the establishment of a RHNA subregion related to administration, legal review, outreach, noticing and communicating with ABAG/MTC. The Cities Association expects that an estimate for the Santa Clara County RHNA subregion will be developed and presented when cities are presented with the decision to join the subregion. However, it is anticipated that the costs of participation will be low since existing infrastructure such as the Cities Association, and Technical staff from each individual city will be used. Conclusion The Housing Commission should consider recommending that the City Council authorize the City Manager to discuss the different aspects of formation of a RHNA subregion and present a formal recommendation in the future based upon further study and discussions. Next Steps The Housing Commission’s recommendation will be presented to the City Council for its final action; following which, the City Manager will engage in discussions on formation of a RHNA subregion with the Santa Clara County Cities Association and present a formal recommendation in 2019/2020. The RHNA subregion needs to be formed no later than September 2020 since state law requires that all RHNA subregions be formed at least 28 months prior to the Housing Element due date of January 31, 2023 (Govt. Code Section 65584.03(a)). Prepared by: Piu Ghosh, Principal Planner Reviewed by: Aarti Shrivastava, Assistant City Manager 394\20\2415540.1 Attachments 1. Draft Resolution recommending that the City Council authorize the City Manager to initiate discussions about forming a RHNA subregion and present a recommendation in the future 2. RHNA Subregion Overview 3. Pros and Cons CITY OF CUPERTINO 10300 Torre Avenue Cupertino, California 95014 RESOLUTION NO. OF THE HOUSING COMMISSION OF THE CITY OF CUPERTINO RECOMMENDING THAT THE CITY COUNCIL ADOPT A RESOLUTION INDICATING INTENT TO SUPPORT FORMATION OF A HOUSING SUBREGION OF SANTA CLARA COUNTY LOCAL AND COUNTY GOVERNMENTS TO FACILITATE AND IMPLEMENT COUNTYWIDE HOUSING PRODUCTION CONSISTENT WITH THE REGIONAL HOUSING NEEDS ALLOCATION (RHNA) FORMULA CURRENTLY ASSIGNED BY THE ASSOCIATION OF BAY AREA GOVERNMENTS (ABAG) The Housing Commission recommends that the City Council, in substantially similar form to the Draft Resolution attached hereto as Exhibit A, adopt a resolution indicating intent to support formation of Housing subregion of Santa Clara County local and county governments and authorizing the City Manager to enter into discussions to form a recommendation for the City Council, to consider in the future, related to forming a RHNA subregion. PASSED AND ADOPTED this __th day of ____________, 2018, at the Regular Meeting of the Housing Commission of the City of Cupertino, State of California, by the following roll call vote: AYES:COMMISSIONERS: NOES:COMMISSIONERS: ABSTAIN:COMMISSIONERS: ABSENT:COMMISSIONERS: ATTEST:APPROVED: Kerri Heusler Chair, Housing Commission Senior Planner City of Cupertino EXHIBIT A CITY OF CUPERTINO 10300 Torre Avenue Cupertino, California 95014 RESOLUTION NO. 18 - XXX OF THE CITY COUNCIL OF THE CITY OF CUPERTINO INDICATING INTENT TO SUPPORT FORMATION OF A HOUSING SUBREGION OF SANTA CLARA COUNTY LOCAL AND COUNTY GOVERNMENTS TO FACILITATE AND IMPLEMENT COUNTYWIDE HOUSING PRODUCTION CONSISTENT WITH THE REGIONAL HOUSING NEEDS ALLOCATION (RHNA) FORMULA CURRENTLY ASSIGNED BY THE ASSOCIATION OF BAY AREA GOVERNMENTS (ABAG) WHEREAS, Housing Element Law (Gov. Code Sections 65580 – 65589.8) provides for a Regional Housing Need Allocation process (RHNA); and WHEREAS, to implement such RHNA process in the San Francisco Bay Area, the State of California has delegated to the Association of Bay Area Governments (ABAG) responsibility to adopt an allocation methodology, then use the adopted methodology to assign to each jurisdiction in the Bay Area the obligation to zone enough housing development capacity to accommodate production of a specific number of housing units during the period from 2023 through 2031; and WHEREAS, Government Code Section 65584.03 provides that certain combinations of local governments may form a subregion to perform RHNA for themselves in order to allocate among themselves the total number of housing units assigned to them collectively by ABAG; and WHEREAS, the City/County of ______________ is interested in exploring the formation of a Regional Housing Needs Allocation (RHNA) subregion consistent with the California Government Code Section 65584 et seq and acceptable to the Association of Bay Area Governments (ABAG) and the California Department of Housing and Community Development (HCD) to facilitate collaboration with the county and all cities in the County of Santa Clara, to efficiently and effectively deliver housing production goals; and WHEREAS, the Board of the Cities Association of Santa Clara County has directed the review of the benefits of such a subregion and subsequently representatives of the Cities Association of Santa Clara County (CASCC) have formed a committee to evaluate and Draft Resolution No. 18-XXX RHNA Subregion Page 3 make recommendations regarding the importance of and opportunities for success through shared housing strategies which could be facilitated by a subregional effort; and WHEREAS, housing is a countywide challenge, and housing production types, numbers, density, appropriateness and affordability levels can vary in different communities, and the Cities’ recognize all production types are important to the housing supply of the County and its related economic and social health; and WHEREAS, Cities are individually accountable for, and retain full local authority for, identifying sites for housing development and for adopting and implementing housing policies intended to facilitate production of housing to meet local, regional and state policy objectives embodied in the numbers prescribed by ABAG the Sustainable Community Strategy that will be adopted by ABAG and the Metropolitan Transportation Commission (MTC) in 2021; and WHEREAS; through mutual cooperation and planning, the production of these housing units may be enhanced through collective efforts and resources, therefore creating a forum for developing countywide policy consensus on matters related to the Sustainable Community Strategy; NOW, THEREFORE the City of Cupertino does hereby find, determine, resolve and order as follows: Section 1: That it is in the best interest of the City to join with other cities in Santa Clara County to explore creation of the RHNA subregion and that by working together to plan for housing growth, the stage is set for implementing housing and more housing will ultimately be built to meet the needs of the entire County and its residents. Section 2:That the City Manager is hereby authorized and directed to enter into discussions regarding the formation of a RHNA subregion and the development of a workplan and budget, and schedule of actions leading to the countywide, self- administration of the housing needs allocation process, allocating the countywide total housing needs allocation among all the Cities and unincorporated County by consensus; and to bring back a recommendation and resolution for action to join a RHNA subregion, or in the alternative, an explanation detailing the decision not to participate in the RHNA subregion. PASSED AND ADOPTED this __th day of ____________, 2018, at the Regular Meeting of the City Council of the City of Cupertino, State of California, by the following roll call vote: Draft Resolution No. 18-XXX RHNA Subregion Page 4 AYES:CITY COUNCIL MEMBERS: NOES:CITY COUNCIL MEMBERS: ABSTAIN:CITY COUNCIL MEMBERS: ABSENT:CITY COUNCIL MEMBERS: ATTEST:APPROVED: Grace Schmidt Mayor City Clerk City of Cupertino Santa Clara County Regional Housing Needs Allocation (RHNA) Subregion Overview 1 What is a RHNA subregion? (Government Code Section 65584.03) In recognition of the common interests and mutual challenges and opportunities associated with providing housing, two or more contiguous cities and a county may form a subregional entity for the purpose of allocation of the subregion’s existing and projected need for housing among its members in accordance with the allocation methodology established pursuant to Government Code Section 65584.04. All decisions of the subregion shall be approved by vote as provided for in the rules adopted by the local governments comprising the subregion, or shall be approved by vote of the county and the majority of the cities with the majority of population within the county. What are the steps to create a subregion, following the prescribed timelines in State law? 1. Each participating jurisdiction adopts a resolution indicating its commitment to participating in the subregional entity. 2. For Santa Clara County, the subregional entity could be a committee of the Cities Association with participating cities and the County. 3. The Cities Association (or other entity) would enter into an agreement with the Council of Governments (COG, in our case ABAG/MTC) that sets forth the process, timing, and other terms and conditions of the delegation of responsibility by the COG to the subregion. What does the subregion do, following the prescribe timelines in State law? 1. The subregion determines the methodology for allocating housing need to its participating jurisdictions according to State law (or accepts the methodology factors from the COG as a starting point for further distribution), providing opportunity for public comment and modification prior to adoption of the methodology. 2. The COG allocates a share to the subregion based on a proportion consistent with the distribution of households assumed for the comparable time period of the applicable regional transportation plan. 3. The subregion allocates the distribution of the RHNA to the participating jurisdictions according to the adopted methodology, providing an opportunity for public comment and modification prior to finalizing the distribution. What is the estimated cost of a subregion versus typical participation in the RHNA process? Assuming that the subregion does not hire a consultant to create a separate methodology, the costs would be: 1. Administrating and documenting the subregion meetings and decisions; 2. Conducting the required outreach prior to the subregion making its decisions ; 3. Communicating with ABAG/MTC as needed; and 4. Publishing the required notices. The Planning Departments of the participating jurisdictions typically absorb the RHNA evaluation without additional staffing or consultant assistance. Santa Clara County Regional Housing Needs Allocation (RHNA) Subregion Overview 2 What are other activities that the subregion could assume outside of the RHNA process and State law?  Foster collaboration between cities within Santa Clara County o Focus on Measure A implementation o Facilitate an open dialogue between the jurisdictions, public, and interested organizations on housing issues and opportunities o Share best practices regarding rehabilitating existing housing stock, addressing gentrification/displacement, etc.  Work together to obtain and commit more financial resources to affordable housing production o Support for 2018 ballot measure for affordable housing funding o Consider potential legislative efforts to seek meaningful tax credits and other mechanisms SANTA CLARA COUNTY RHNA SUBREGION TASK FORCE PROS & CONS OF RHNA SUBREGION FORMATION Pros Cons Example Creates flexibility & allows cities to trade Distribute the subregion’s numbers or can use ABAG’s distribution Empowers cities to have a say in the regional planning process Self-determination: a city is able to accept or not accept allocation from another city. Allows better alignment between local and regional needs Ability to plan along on transit corridors and near employment. Can find innovative solutions Collective problem-solving which may include negotiating credits and creative financing May facilitate the production of more housing Utilizes economies of scale and eliminates duplication. Siting housing near supportive services. Creates a forum for collaboration that leads to innovative solutions San Mateo County Trade Woodside/Redwood City & Daly City/Colma/County Creates awareness (and healthy competition) Creates a forum to share knowledge and success. When one city is doing the heavy lifting, may encourage other jurisdictions to step up to the plate. If success, may create additional opportunities for collaborative work Success may be housing or spill over to other technical areas (transportation). May use collaboration for legislative advocacy. Better development Cities can work together to build near transit and not SANTA CLARA COUNTY RHNA SUBREGION TASK FORCE PROS & CONS OF RHNA SUBREGION FORMATION necessarily confined by a city boundary. Creates a forum to discuss sharing of planning resources Share resources - - may share in cost to pay consultants for housing element preparation or program ideas (for those who want to share). Time, effort & resources which may end in same result. What if subregion fails to produce a different allocation? Lack of trust for fair and equitable process. Some cities may shirk their responsibility to step up and accept housing. Increases local control Ability to control own numbers and improve county-wide performance. Loss of political distance from MTC and ABAG Pressure on community to produce additional housing. Lack of clarity of the benefits to accept someone’s numbers/housing City worried about allocation dumping Still need to plan for housing for all income levels Can’t go to zero. Every jurisdiction still has an allocation in every income level. No role model No other subregion has such large population variances. Increased use of ADUs ADUs more feasible with cities with large residential lots.