HC Packet 09-26-2019CITY OF CUPERTINO
HOUSING COMMISSION
AGENDA
10300 Torre Avenue, City Hall Conference Room C
Thursday, September 26, 2019
9:00 AM
Special Meeting
NOTICE IS HEREBY GIVEN that a special meeting of the Housing Commission is hereby called for
Thursday, September 26, 2019, 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
CEREMONIAL MATTERS AND PRESENTATIONS
1.Subject: Election of a Chair and Vice Chair. Continued from the cancelled September
12, 2019 meeting.
Recommended Action: nominate and elect a Chair and Vice Chair
APPROVAL OF MINUTES
2.Subject: Draft Minutes of July 25, 2019, Continued from the cancelled September 12,
2019 meeting.
Recommended Action: approve or modify the Draft Minutes of July 25, 2019
Draft Minutes of July 25, 2019
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
STUDY SESSION
Page 1
Housing Commission Agenda September 26, 2019
3.Subject: Informational presentation regarding proposed changes to Municipal Code
Amendments to Title 5: Business License and Regulations and Title 19: Zoning, of the
Cupertino Municipal Code to allow Short-Term Rental uses in single-family residential
zoning districts. Application No(s).: MCA-2018-02; Applicant(s): City of Cupertino;
Location: Citywide. Continued from the cancelled September 12, 2019 meeting.
Recommended Action: Receive report and provide any input to Staff
OLD BUSINESS
NEW BUSINESS
4.Subject: 2018-19 Community Development Block Grant (CDBG) Consolidated Annual
Performance and Evaluation Report (CAPER). Continued from the cancelled September
12, 2019 meeting.
Recommended Action: Receive report and provide any input to Staff
Staff Report
A - Draft Resolution 19-03
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
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 .
Page 2
Housing Commission Agenda September 26, 2019
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 SPECIAL MEETING OF
THE HOUSING COMMISSION HELD ON JULY 25, 2019
CALL TO ORDER
Chair Zhao opened the meeting at 9:02am.
ROLL CALL
Commission Members present: John Zhao, Chair
Nina Daruwalla, Vice Chair
Sue Bose, Commissioner
Connie Cunningham, Commissioner
Staff present: Kerri Heusler, Housing Manager
APPROVAL OF MINUTES
1. Minutes of the July 11, 2019 Housing Commission meeting were approved as written. Commissioner
Cunningham made a motion and Commissioner Daruwalla seconded the motion.
APPROVE: Zhao, Daruwalla, Bose, Cunningham
ABSENT:
ABSTAIN:
VOTE: 4-0-0
ORAL COMMUNICATIONS
None
WRITTEN COMMUNICATIONS
None
NEW BUSINESS
2. Below Market Rate (BMR) Linkage Fees Update for the Cupertino BMR Housing Program
The Commission accepted a presentation from staff member Kerri Heusler, Eric Phillips of Goldfarb &
Lipman, and Sujata Srivastava of Strategic Economics. Staff and the consultant team answered questions
from the Commissioners and members of the public. Public comments were received from Leanna
Crabtree and Jennifer Griffin.
The Commission proposed the following changes:
Residential
Prohibit in-lieu fees entirely for residential 7+ units
Recommend the following inclusionary policies:
o Single Family- 20%
o Townhomes/Condos- between 20-25% defending on feasibility
2
o Rental- no change
Explore specific inclusionary percentages in between 15%, 20%, 25% for prototypes 1, 2 & 3
Include additional language in alternative means of compliance:
o Developer has to require an equivalent number of offsite units
o Acquisition of existing unit with a requirement to rehabilitate as BMR units
o Land donation option
Decide implementation date of new policy with consideration for the BMR units at the Oaks
Review existing parking policies with the goal of removing barriers to affordable housing with a
focus on reducing development costs and creating incentives around parking
Explore a prototype of apartments without retail to see if it is feasible
Non-Residential
Recommend the following fees:
o Office / R&D- between $25-30
o Hotel- $15
o Retail- no change
Commissioner Cunningham made a motion and Commissioner Daruwalla seconded the motion.
APPROVE: Zhao, Daruwalla, Cunningham
ABSENT:
DISAPPROVE:
ABSTAIN: Bose
VOTE: 3-0-1
STAFF AND COMMISSION REPORTS:
Staff member Heusler provided information about the following items:
1. Santa Clara County Homeless Census & Survey
2. Housing Commission recruitment
3. RHNA Subregion update- 2/1/20 deadline for regions to form and notify ABAG
4. Upcoming Events:
The Veranda Dedication- August 12
th
BMR Workshop- September 12
th
ADJOURNMENT:
The meeting was adjourned at 11:52am to the next regularly scheduled Housing Commission meeting.
Respectfully submitted:
/s/Kerri Heusler
Kerri Heusler
Housing Manager
1
COMMUNITY DEVELOPMENT DEPARTMENT
CITY HALL
10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3308 • www.cupertino.org
HOUSING COMMISSION STAFF REPORT
September 26, 2019
Subject
FY 2018-19 Community Development Block Grant (CDBG) Consolidated Annual
Performance and Evaluation Report (CAPER).
Recommended Action
Conduct Public Hearing; and
1. Adopt draft resolution approving the FY 2018-19 CDBG CAPER.
Discussion
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, including the
extent of poverty, populations, housing overcrowding, age of housing, and extent of
population growth lag in relationship to other metropolitan areas. As a requirement to
receive these entitlement grants, Title I of the National Affordable Housing Act
mandates that jurisdictions prepare a five-year Consolidated Plan, Annual Action Plan,
and a Consolidated Annual Performance Evaluation and Report (CAPER). The 2015-
2020 Consolidated Plan was adopted by City Council on April 7, 2015. The FY 2019-20
Annual Action Plan was adopted by City Council on June 18, 2019.
2018-19 CDBG CAPER
The CAPER is an annual document that outlines the progress the jurisdiction has made
in carrying out its strategic plan and its Annual Action Plan. The CAPER is an
overview of major initiatives and highlights that were proposed and executed
throughout the program year. The CAPER consists of specific program narratives, an
assessment of annual performance, and an assessment of progress toward meeting
goals and objectives contained in the Consolidated Plan.The FY 2018-19 CAPER
(Exhibit 1) covers the City’s CDBG accomplishments from July 1, 2018 to June 30, 2019
and represents the fourth year of the 2015-2020 Consolidated Plan.
Per HUD regulations, the City is required to make the CAPER available for public
comments for fifteen days. The 2018-19 CAPER was made available to the public at
www.cupertino.org/housing and the City Clerk’s office from August 26, 2019 to
September 9, 2019. No public comments have been received. The CAPER is due to
HUD by September 30, 2019.
FY 2018-19 CDBG Funding
FY 2018-19 CDBG funding allocations are noted in the table below.
Applicant Agency Budget
CDBG Public Services
Live Oak Adult Day Services – Senior Adult Day Care /
Caregiver Respite
$20,431.15
West Valley Community Services – Community Access to
Resource and Education
$35,000.00
Administration $73,908.20
CDBG Capital/Housing Projects
Rebuilding Together Silicon Valley – Housing Repair and
Rehabilitation Program
$64,000.00
West Valley Community Services – Vista Village Renovation
Project
$176,201.65
GRAND TOTAL:$369,541.00
2018-19 CDBG Grant Accomplishments
The City funded two (2) CDBG public service grants for senior services and emergency
services and two (2) capital housing project grants for residential single-family
rehabilitation and residential affordable multi-family renovation. In total, one hundred
and forty-seven (147) persons were served through the City’s CDBG funded services. Of
the individuals/households served, one hundred (100) were extremely-low income,
nineteen (19) were very-low income, and twenty-eight (28) were low-income.
Process
This is the only public hearing required by HUD for the CAPER. All required HUD
notices are published in the Cupertino Courier newspaper in advance.
Next Steps
Upon adoption of the FY 2018-19 CAPER by the Housing Commission, it will be
forwarded to HUD in time for the deadline of September 30, 2019.
Prepared by: Kerri Heusler, Housing Manager
Reviewed and Approved for Submission by: Benjamin Fu, Director of Community
Development
Attachments:
A -Draft Resolution
1
RESOLUTION NO. 19-03
A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CUPERTINO
APPROVING THE FY 2018-19 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROGRAM CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION
REPORT (CAPER)
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 is required to submit a FY 2018-19 CAPER (Exhibit
1) to the United States Department of Housing and Urban Development (HUD) for review and
approval; and
WHEREAS, the City of Cupertino makes the certifications required by 24 CFR Sections
91.225 and 570.303 as contained in the FY 2018-19 CDBG Annual Action Plan; now, therefore:
BE IT FURTHER RESOLVED that the Housing Commission of the City of Cupertino
hereby approves the FY 2018-19 CAPER; and
BE IT FURTHER RESOLVED that the City Manager is hereby authorized to submit the
FY 2018-19 CAPER approved by the Housing Commission of the City of Cupertino to HUD.
PASSED AND ADOPTED at a special meeting of the Housing Commission of the City of
Cupertino this 26th day of September 2019 by the following vote:
Vote Members of the Housing Commission
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST: APPROVED:
____ _________________
Kerri Heusler Nina Daruwalla
Housing Manager Vice Chair, Housing Commission
CAPER 1
City of Cupertino
2018/19 Consolidated Annual
Performance Evaluation Report
Prepared by the Department of Community Development
10300 Torre Avenue
Cupertino, CA 95014
Approved by
Housing Commission
September 26, 2019
Resolution No. HC 19-03
CAPER 2
Table of Contents
CR-05 - Goals and Outcomes ................................................................................................... 5
Progress the jurisdiction has made in carrying out its strategic plan and its action plan.
91.520(a) ............................................................................................................................... 5
Comparison of the proposed versus actual outcomes for each outcome measure submitted
with the consolidated plan 91.520(g) ................................................................................... 5
Assess how the jurisdiction’s use of funds addresses the priorities and specific objectives
identified in the plan. ............................................................................................................. 6
CR-10 - Racial and Ethnic composition of families assisted ................................................. 8
Describe the families assisted. 91.520(a) .............................................................................. 8
CR-15 - Resources and Investments 91.520(a) ....................................................................... 9
Identify the resources made available .................................. Error! Bookmark not defined.
Identify the geographic distribution and location of investments ...... Error! Bookmark not
defined.
Leveraging ............................................................................................................................. 9
Explain how federal funds leveraged additional resources. ................................................. 9
Other Federal Grant Programs .............................................................................................. 9
County of Santa Clara and Local Housing and Community Development Sources ........... 10
Below Market-Rate (BMR) Affordable Housing Fund (AHF) ........................................... 10
General Fund Human Service Grants (HSG) Program ....................................................... 10
CR-20 - Affordable Housing 91.520(b) .................................................................................. 12
Evaluation of the jurisdiction's progress in providing affordable housing.......................... 12
Discuss the difference between goals and outcomes. ......................................................... 12
Discuss how these outcomes will impact future annual action plans.. ............................... 12
CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) ............. 14
Evaluate the jurisdiction’s progress in meeting its specific objectives for reducing and
ending homelessness ........................................................................................................... 14
Reaching out to homeless persons (especially unsheltered persons) and assessing their
individual needs ................................................................................................................... 14
Addressing the emergency shelter and transitional housing needs of homeless persons .... 14
Helping low-income individuals and families avoid becoming homeless, especially
extremely low-income individuals and families ................................................................. 14
Helping homeless persons (especially chronically homeless individuals and families,
families with children, veterans and their families, and unaccompanied youth) make the
transition to permanent housing and independent living .................................................... 14
CR-30 - Public Housing 91.220(h); 91.320(j) ........................................................................ 17
Actions taken to address the needs of public housing ......................................................... 17
Actions taken to encourage public housing residents to become more involved in
management and participate in homeownership ................................................................. 17
Actions taken to provide assistance to troubled PHAs ....................................................... 17
CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j) ................................................................ 18
Actions taken to remove or ameliorate the negative effects of public policies that serve as
barriers to affordable housing 91.220 (j); 91.320 (i) ........................................................... 18
Actions taken to address obstacles to meeting underserved needs. 91.220(k); 91.320(j) .. 18
Actions taken to reduce lead-based paint hazards. 91.220(k); 91.320(j) ............................ 19
Actions taken to reduce the number of poverty-level families. 91.220(k); 91.320(j) ......... 19
CAPER 3
Actions taken to develop institutional structure. 91.220(k); 91.320(j) ............................... 19
Actions taken to enhance coordination between public and private housing and social
service agencies. 91.220(k); 91.320(j) ................................................................................ 20
Identify actions taken to overcome the effects of any impediments identified in the
jurisdictions analysis of impediments to fair housing choice. 91.520(a) ........................... 20
CR-40 - Monitoring 91.220 and 91.230 ................................................................................. 22
Describe the standards and procedures used to monitor activities ...................................... 22
Citizen Participation Plan 91.105(d); 91.115(d) ................................................................. 22
Describe the efforts to provide citizens with reasonable notice and an opportunity to
comment on performance reports. ....................................................................................... 22
CR-45 - CDBG 91.520(c) ........................................................................................................ 23
Specify the nature of, and reasons for, any changes in the jurisdiction’s program objectives
and indications of how the jurisdiction would change its programs as a result of its
experiences. ......................................................................................................................... 23
Does this Jurisdiction have any open Brownfields Economic Development Initiative
(BEDI) grants? .................................................................................................................... 23
[BEDI grantees] Describe accomplishments and program outcomes during the last year. 23
CAPER 4
List of Tables
Table 1 – Accomplishments – Program Year & Strategic Plan to Date…………………………5
Table 2 – Table of Assistance to Racial and Etnic Populations by Source of Funds…………….8
Table 3 – Resources Made Available…………………………………………………………….9
Table 4 – Identify the Geographic Distribtion and Location of Investments…………………….9
Table 5 – Number of Households………………………………………………………………. 12
Table 6 – Number of Households Supported…………………………………………………….12
Table 7 – Number of Persons Served……………………………………………………………13
CAPER 5
CR-05 - Goals and Outcomes
Progress the jurisdiction has made in carrying out its strategic plan and its action plan. 91.520(a)
Below is a description of the progress the City of Cupertino has made in achieving the goals outlined in its strategic plan and annual
action. In fiscal year (FY) 2018/19, the City achieved its annual goals and met the five (5) year goals outlined in the Consolidated
Plan. It should be noted that in FY 2016/17, the City decided to change the funding source of ECHO Housing, its fair housing non-
profit service partner, to Below Market Rate Affordable Housing Funds (BMR AHF). While the change has resulted in no CDBG
funds being utilized for fair housing services, the City continued to fund ECHO Housing to provide fair housing services through FY
2017/2018. During the application process for FY 2018/2019, the fair housing services contract was awarded to Project Sentinel.
Project Sentinel is based in Santa Clara and has provided the City of Cupertino with rental mediation services. The contract with
Project Senintel includes fair housing and rental mediation services. The contract is funded with the City’s BMR AHF funds, which
will be discussed later in the report. Project Sentinel has met or exceeded its annual goals for FY 2018/2019 but these goals and
accomplishments are no longer reported in IDIS.
Comparison of the proposed versus actual outcomes for each outcome measure submitted with the consolidated plan and
explain, if applicable, why progress was not made toward meeting goals and objectives. 91.520(g)
Categories, priority levels, funding sources and amounts, outcomes/objectives, goal outcome indicators, units of measure, targets,
actual outcomes/outputs, and percentage completed for each of the grantee’s program year goals.
Table 1 - Accomplishments – Program Year & Strategic Plan to Date
Goal Category Source /
Amount
Indicator Unit of
Measure
Expected
Strategic
Plan
Actual
Strategic
Plan
Percent
Complete
Expected
Program
Year
Actual
Program
Year
Percent
Complete
Affordable
Housing
Affordable
Housing
CDBG:
$176,201.65
Vista Village
Rental units
rehabilitated
Household
Housing Unit 12 38 317% 5 5 100%
Affordable
Housing
Affordable
Housing
CDBG:
$64,000
Rebuidling
Together
Homeowner
Housing
Rehabilitated
Household
Housing Unit 35 34 97% 7 7 100%
CAPER 6
Fair Housing
Non-Housing
Community
Development
CDBG:
$0
Public service
activities other
than
Low/Moderate
Income Housing
Benefit
Persons
Assisted 45 10 22.2% 15 0 0%
Homelessness Homeless CDBG:
$35,000
CARE
Public service
activities other
than
Low/Moderate
Income Housing
Benefit
Persons
Assisted 500 417 83.4% 100 100 100%
Strengthen
Neighborhoods
Non-Homeless
Special Needs
Non-Housing
Community
Development
CDBG:
$20,431.15
Public service
activities other
than
Low/Moderate
Income Housing
Benefit
Persons
Assisted 105 186 177% 21 35 167%
Assess how the jurisdiction’s use of funds, particularly CDBG, addresses the priorities and specific objectives identified in the
plan, giving special attention to the highest priority activities identified.
The City Council adopted the 2015-2020 Consolidated Plan on April 7, 2015. Overall, the City has performed well at meeting the
major goals outlined in the Consolidated Plan. In total, the City’s CDBG program assisted one hundred forty-seven (147) persons
access needed services. Of these persons, one hundred (100) were extremely-low income, and forty-seven (47) were low income.
As illustrated in Table 1, the City has effectively utilized the CDBG funding to target the provision of services to seniors as well as the
provision of services to at-risk low-income individuals and families. Unfortunately, the City has not been effective at producing new
units for low-income and special needs households. The major barrier to accomplishing this goal has been the real estate market in
Cupertino and the lack of available land. However, in FY 18/19, the City utilized CDBG funds to provide funding to rehabilitation
five units of affordable rental housing units at Vista Village Apartments. These units provide affordable rental housing options to
extremely-low-, very-low, and low-income households.
CAPER 7
Additionally, the City has increased its efforts to promote development of affordable housing throughout the City. The City joined the
Santa Clara County HOME Consortium in 2015. HOME funds can be used to fund eligible affordable housing projects for acquisition,
construction, and rehabilitation. Starting in FY 2015-16, developers of affordable housing projects were eligible to competitively apply
through an annual RFP process. Applications are submitted to the Santa Clara County Office of Supportive Housing (OSH) for the
HOME funds to help subsidize affordable housing projects within the City. If the City receives HOME funds from its participation in
the HOME Consortium, the required twenty-five percent (25%) matching funds will be provided from the City’s BMR AHF. Currently,
the BMR AHF has an available balance of approximately $6,000,000.
The Veranda, which was developed by Charities Housing and opened in July 2019, received $500,000 in HOME funds through the
HOME Consortium. The property provides eighteen (18) units of low-income senior housing and one (1) property manager unit. The
City provided a twenty-five (25%) match as part of total contribution of 43% ($5,172,000.00) of the development costs for this project.
It should also be noted that the City utilizes a performance measurement system to monitor its progress at meeting its goals and
objectives. The performance measurement system lists objectives, outcomes, indicators as well as one-year goals and five-year
objectives for each goal statement. Goals include providing an adequate supply of residential units for all economic segments of the
population and providing housing that is affordable for a diversity of Cupertino households.
CAPER 8
CR-10 - Racial and Ethnic composition of families assisted
Describe the families assisted (including the racial and ethnic status of families assisted).
91.520(a)
Table 2 - Table of assistance to racial and ethnic populations by source of funds
CDBG
White 83
Black or African American 8
Asian 49
American Indian/Alaska Native/White 2
Other multi-racial 5
Total 147
Hispanic 22
Not Hispanic 125
In total, the City’s CDBG program served one hundred and forty-seven (147) individuals. Of
those individuals, approximately fifty-six percent (56%) were White; five percent (5.4%) were
African American; thirty-three percent (33.3%) were Asian; and five percent (4.8%) were either
American Indian/American Native, American Indian/Alaska Native/White or Other, Multi-racial.
Approximately, fifteen percent (14.9%) were Hispanic.
CAPER 9
CR-15 - Resources and Investments 91.520(a)
Table 3 - Resources Made Available
Source of Funds Source Resources Made
Available
Amount Expended
During Program
Year
CDBG HUD $369,541.00 $352,267.12
Narrative
Please see above.
Table 4 - Identify the geographic distribution and location of investments
Target Area Planned Percentage
of Allocation
Actual Percentage
of Allocation
Narrative
Description
N/A N/A N/A The funds were
distributed citywide. Narrative
Not applicable. The City has not established specific target areas to focus the investment of
CDBG funds.
Leveraging
Explain how federal funds leveraged additional resources (private, state and local funds),
including a description of how matching requirements were satisfied, as well as how any
publicly owned land or property located within the jurisdiction that were used to address
the needs identified in the plan.
The City encourages all non-profit housing developers to leverage funding resources. It is the
City’s goal to leverage all funding with other resources. All the public service projects carried
out with CDBG funds from the City involved the leveraging of other funding sources.
For instance, many of the non-profits funded by the City receive monies from the United Way,
charitable foundations, local jurisdictions, and/or other federal funding.
Other Federal Grant Programs
In addition to the entitlement dollars listed above, the federal government has several other
funding programs for community development and affordable housing activities. These include:
the Section 8 Housing Choice Voucher Program, Section 202, Section 811, the Affordable
Housing Program (AHP) through the Federal Home Loan Bank, and others. It should be noted
that, in most cases, the City would not be the applicant for these funding sources as many of
these programs offer assistance to affordable housing developers rather than local jurisdictions.
CAPER 10
County of Santa Clara and Local Housing and Community Development Sources
There are a variety of countywide and local resources that support housing and community
development programs. Some of these programs offer assistance to local affordable housing
developers and community organizations while others provide assistance directly to individuals.
These resources are discussed below.
Below Market-Rate Affordable Housing Fund (BMR AHF)
The BMR AHF receives its revenue from the payment of housing mitigation fees from non-
residential (office, commercial, retail, research and development (R&D), hotel and industrial)
and residential development. The non-residential housing mitigation fee jobs/housing nexus
study acknowledges housing needs created by the development of office, commercial, retail,
hotel, R&D and industrial development. A fee is applied to new square footage of non-residential
development in the City. The fees collected are deposited in the City's BMR AHF and are to be
used for the provision of affordable housing.
A portion of the BMR AHF funds will be targeted to benefit extremely low-income households
and persons with specials needs (such as the elderly, victims of domestic violence, and the
disabled, including persons with development disabilities).
In FY 2018/19, the City allocated $43,000 in BMR AHF to local non profit organizations that
provide fair housing services, BMR program administration, landlord/tenant rental mediation,
and an affordable rental housing renovation project. Additionally, the City allocated $80,000 in
BMR AHF Capital Housing Projects for the rehabilitation of Greenwood Court. The four units at
Greenwood Court were converted from a transitional housing program to permanent affordable
housing for extremely low- and very low-income households. The funds were utilized to repair
and renovate the property.
General Fund Human Service Grants (HSG) Program
In FY 2018/19, the City Council allocated $83,600 from the General Fund to public and human
service agencies within the City of Cupertino. The monies were utilized to fund a long-term care
ombudsman, client services for victims of domestic violence, and legal assistance to seniors.
As mentioned previously, the City joined the Santa Clara County HOME Consortium in 2015.
HOME funds can be used to fund eligible affordable housing projects for acquisition,
construction, and rehabilitation. Starting in FY 2015-16, developers of affordable housing
projects were eligible to competitively apply through an annual RFP process. Applications are
submitted to the County OSH for the HOME funds to help subsidize affordable housing projects
within the City. If the City receives HOME funds from its participation in the HOME
Consortium, the required twenty-five percent (25%) matching funds will be provided from the
City’s BMR AHF. Currently, the BMR AHF had an available balance of approximately
$6,000,000. As mentioned previously, the Veranda, which was developed by Charities Housing,
applied for and received $500,000 in HOME funds from the HOME Consortium. The property
CAPER 11
provided (eighteen) 18 units low-income senior housing and one (1) property manager unit. The
City provided a twenty-five percent (25%) match for the project.
It should be noted that the City does not own any vacant land that is suitable for development.
CAPER 12
CR-20 - Affordable Housing 91.520(b)
Evaluation of the jurisdiction's progress in providing affordable housing, including the
number and types of families served, the number of extremely-low income, low-income,
moderate-income, and middle-income persons served.
Table 5 - Number of Households
One-Year Goal Actual
Number of homeless households to
be provided affordable housing
units
0 0
Number of non-homeless
households to be provided
affordable housing units
12 12
Number of special-needs
households to be provided
affordable housing units
0 0
Total 12 12
Table 6 - Number of Households Supported
One-Year Goal Actual
Number of households supported
through rental assistance
0 0
Number of households supported
through the production of new units
0 0
Number of households supported
through the rehab of existing units
12 12
Number of households supported
through the acquisition of existing
units
0 0
Total 12 12
Discuss the difference between goals and outcomes and problems encountered in meeting
these goals.
The City’s annual goals were met in FY 2018/2019. Rebuilding Together assisted seven
homeowners with the rehabilitation of their homes. WVCS completed rehabilitation repairs on
five affordable housing rental units which are occupied by extremely-low, very-low, and low-
income households.
Discuss how these outcomes will impact future annual action plans.
As discussed above, the City met its annual goals. The City will continue to address the needs
highlighted in its 2015-2020 Consolidated Plan and does not foresee any changes to its Annual
Action Plan. As mention above, although fair housing activities are no longer funded with
CAPER 13
CDBG dollars, the City continues to fund a fair housing service provider with its BMR AHF
funds. The fair housing service provider mets it annual fair housing goals.
Include the number of extremely low-income, low-income, and moderate-income persons
served by each activity where information on income by family size is required to
determine the eligibility of the activity.
Table 7 – Number of Persons Served
Number of Persons Served CDBG Actual HOME Actual
Extremely Low-income 100 0
Very Low-income 19 0
Low-income 28 0
Moderate-income 0 0
Above Moderate-income 0 0
Total 147 0 Narrative Information
In total, one hundred and forty seven (147) persons were served through the City’s CDBG
funded services. Of the individuals/households served, one hundred (100) were extremely-low
income, forty-seven were low-income.
CAPER 14
CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c)
Evaluate the jurisdiction’s progress in meeting its specific objectives for reducing and
ending homelessness through:
Reaching out to homeless persons (especially unsheltered persons) and assessing their
individual needs.
Through the assistance of Santa Clara County Measure A funds, six (6) units are reserved at The
Veranda as permanent supportive housing units for homeless seniors, aged sixty-two (62) or
older, with disabling conditions. The Veranda is one of the first developments to take advantage
of Measure A funding.
In 2017, the City provided $3,672,000 in BMR AHF to The Veranda, a low-income senior
development. Of the nineteen (19) units at The Veranda (there is one manager’s unit at the
property), six (6) have been set aside as Measure A units designed to serve extremely low-
income formerly homeless individuals. Through the City’s participation in the Santa Clara
County HOME Investment Partnerships Program (HOME) Consortium, The Veranda secured
$500,000 in HOME funds. The City also provided an additional $1,000,000 in funds through the
Housing Trust Silicon Valley for a total contribution of $5,172,000.
Addressing the emergency shelter and transitional housing needs of homeless persons.
The City supports efforts to end homelessness. The City allows zoning for emergency shelters.
This has allowed the Faith in Action Silicon Valley Rotating Shelter Program to set-up overnight
shelter beds in churches throughout the City. As part of the 2014- 2022 Housing Element update,
the City updated its zoning code to comply with SB No. 2 regarding emergency shelters.
In FY 2018-19, the City provided $25,000 to Maitri through the General Fund Human Service
Grant’s (HSG) Program. Maitri provides transitional housing for adult women and children who
are victims of domestic violence. The majority of the household served by Maitri are homeless.
Helping low-income individuals and families avoid becoming homeless, especially
extremely low-income individuals and families and those who are: likely to become
homeless after being discharged from publicly funded institutions and systems of care
(such as health care facilities, mental health facilities, foster care and other youth facilities,
and corrections programs and institutions); and, receiving assistance from public or
private agencies that address housing, health, social services, employment, education, or
youth needs
In FY 18/19, the City of Cupertino provided $35,000 in CDBG funds to WVCS to administer its
Community Access to Resources and Education (CARE) program. The main focus of CARE is
to bring services and resources closer to at-risk populations, coordinate assistance internally and
externally, and help navigate hospital, social services, and legal systems. It is designed to enable
access to critical basic needs services and help clients navigate the maze of benefits, from
Medicare and Social Security to affordable housing options, health care, and specialized care.
CAPER 15
The one stop benefit assistance service helps provide assistance with applications to benefits
including CalWORKs, CalFresh, Medi-Cal, Free/Reduced lunch, and Healthy Kids. The
supportive services also help clients build financial stability by proving monthly budget relief
through access to the food pantry, and discounts on their utility bill and emergency financial
assistance for unforeseen emergencies. This range of supportive services and case management
helps at-risk individuals and households maintain stability and prevents homelessness due to a
financial crisis.
Additionally, in FY 18/19, the City provided General Fund HSG and/or BMR AHF to the
following organizations:
• Senior Adult Legal (SALA) – Received $10,600 from the HSG. SALA provided free
legal services to.fifty-two (52) Cupertino residents age sixty (60) or older. Eight six
percent (86%) were seen at a SALA appointment at the Cupertino Senior Center and the
rest were served through a SALA site in another city or the agency’s Central Office in
San Jose. All clients were presumed low/moderate income (51% to 80% AMI) by HUD
because they are elderly (age 60 or older). In addition, 42% were age 75 or older, a
demographic placing them at risk of abuse, isolation, or institutionalization.
• Maitri – Received $25,000 from the Human Services Grant. The Anjali Transitional
House (TH) served 33 women and children for 5,171 bednights and provided adult
residents with 321 individual case management sessions. The TH provided residents with
a safe, longer-term housing option (up to nine months), as well as culturally appropriate
and customized support that helped them gain the self-confidence and skills needed to
rebuild their lives.
• Catholic Charities - $8,000 from the Human Services Grant. Catholic Charities provided
needed advocacy of elders living in long-term care facilities. In total, 513 unduplicated
residents were contacted during the fiscal year.
Helping homeless persons (especially chronically homeless individuals and families,
families with children, veterans and their families, and unaccompanied youth) make the
transition to permanent housing and independent living, including shortening the period of
time that individuals and families experience homelessness, facilitating access for homeless
individuals and families to affordable housing units, and preventing individuals and
families who were recently homeless from becoming homeless again
As mentioned above, the City provided $35,000 in CDBG funds to WVCS to administer its
Community Access to Resources and Education (CARE) program. The program provides case
management and short-term rental assistance to support homeless families transitioning to
permanent housing. Additionally, the program allocates Red Cross emergency rental grants and
emergency utility payments to assist low-income individuals and families on the verge of
homeless maintain their housing.
In FY 2018/2019, the City provided $40,000 in General Fund HSG to West Valley Community
Services for the Haven to Home program. The goal of the Haven to Home (HTH) is to help
currently un-housed Cupertino individuals and families secure permanent housing, maintain
employment, enhance income opportunities and financial stability. The supportive services
critical to the success of this program are intensive case management, housing search, landlord
CAPER 16
mediation, benefits clinic, and financial coaching. HTH aims to end homelessness and prevent
homelessness by coordinating multilevel services and leveraging further resources in the
community in order to build long-term stability and self-sufficiency for participants. Through
this funding in FY 2018/2019, WVCS served 50 homeless individuals and families whose last
address was in Cupertino.
In total in FY 2018/2019, the City allocated approximately $55,431.15 in CDBG and $83,600.00
in HSG money to provide a variety of support services for low-income Cupertino households.
Services provided include the provision of food, clothing, legal assistance, emergency rental
assistance, and a variety of other services.
CAPER 17
CR-30 - Public Housing 91.220(h); 91.320(j)
Actions taken to address the needs of public housing
Not applicable. The Housing Authority of the County of Santa Clara (HACSC) owns and
manages four public housing units, which are all located in the City of Santa Clara. There is no
public housing in Cupertino.
Actions taken to encourage public housing residents to become more involved in
management and participate in homeownership
While the majority of their units have been converted to affordable housing stock, HACSC is
proactive in incorporating resident input into the agency’s policy-making process. An equitable
and transparent policy-making process that includes the opinions of residents is achieved through
the involvement of two tenant commissioners, one being a senior citizen, on the HACSC board.
Actions taken to provide assistance to troubled PHAs
Not applicable.
CAPER 18
CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j)
Actions taken to remove or ameliorate the negative effects of public policies that serve as
barriers to affordable housing such as land use controls, tax policies affecting land, zoning
ordinances, building codes, fees and charges, growth limitations, and policies affecting the
return on residential investment. 91.220 (j); 91.320 (i)
As part of the City’s FY 2019-20 Work Program, the City is working on an update to the Below
Market Rate (BMR) Linkage Fees. As part of this update, the City is conducting an economic
feasibility analysis to review fees associated with development and potential policy updates to
the BMR Program.
Actions taken to address obstacles to meeting underserved needs. 91.220(k); 91.320(j)
As mentioned in the Consolidated Plan, the City’s highest need is for affordable units for low-
income and special needs households. One of the primary impediments to creating the affordable
units is the high cost of land in Cupertino and rising construction costs. In order to fund 100%
affordable developments, the City adopted a housing mitigation program in 1993. Originally, the
program required all new residential developments to dedicate 10% of its housing as affordable.
In 2002, the City updated the Housing Element and raised the requirement to 15%. For smaller
developments with less than seven units, developers can build one BMR unit or pay an in-lieu
fee. This in-lieu fee allows the City to accumulate funds to use for affordable developments. In
the past ten years, the City has accumulated over five million dollars in fees. These fees have
been used to fund the Stevens Creek Village 40-unit development for single-persons and small
households; Vista Village, a 24-unit development aimed at housing small and medium size
families; and Senior Housing Solutions’ purchase of a home for use as senior congregate care.
To ensure that the mitigation fees continue to be adequate to mitigate the impacts of new
development on affordable housing needs, the City completed a nexus study update in 2015. The
purpose of the nexus study update was to allow the City to consider appropriate mitigation fee
charges and possible affordable percentage requirements. The City Council adopted the updated
residential and non-residential housing mitigation fees on May 5, 2015. The fees went into effect
on July 6, 2015. The City’s fee schedule is updated annually in July.
The City has increased its efforts to promote development of affordable housing throughout the
City. The City joined the Santa Clara County HOME Consortium in 2015. HOME funds can be
used to fund eligible affordable housing projects for acquisition, construction, and rehabilitation.
Starting in FY 2015-16, developers of affordable housing projects were eligible to competitively
apply through an annual RFP process. Applications are submitted to the County OSH for the
HOME funds to help subsidize affordable housing projects within the City.
The Veranda, which was developed by Charities Housing, applied for and received $500,000 in
HOME funds from the HOME Consortium for FY 18/19. The property provided 18 units of low-
income senior housing and one property manager unit (for a total of 19 units). The property opened
in July 2019. The City provided a twenty-five (25%) match as part of total contribution of 43%
CAPER 19
($5,172,000.00) of the development costs for this project.
Actions taken to reduce lead-based paint hazards. 91.220(k); 91.320(j)
The number of units with potential lead-based paint hazards in the City is likely less than 500.
Lower income households will occupy some percentage of these units, but how many is not
known. In addition to working with the County Health Department to identify and assist any
children with elevated blood lead levels, the City will, as part of its efforts to address the
rehabilitation needs of its housing stock, provide assistance to persons seeking to mitigate
lead hazards in the home.
Currently, City staff has a policy to test any property being assisted with CDBG funds for the
presence of lead based paint if the property was constructed prior to 1978. If the property tests
positive for the presence of lead based paint, then the City assists with the abatement of the paint.
In all cases, the property owners and tenants are notified of the presence of the lead based paint.
The City also assists the contractor with finding contractors trained on how to deal with lead
based paint or receiving training themselves.
Actions taken to reduce the number of poverty-level families. 91.220(k); 91.320(j)
As mentioned earlier, the City funds WVCS’s Community Access to Resources and Education
(CARE) program to provide those living below the poverty level with food, clothing and
emergency rental assistance. These are basic necessities that those living at or below the poverty
level cannot afford due to limited incomes. WVCS also provides job search assistance and basic
computer classes in an attempt to reduce the number of persons living below the poverty level.
Additionally, the City makes it a high priority to provide affordable rental units to extremely-low
income households.
Actions taken to develop institutional structure. 91.220(k); 91.320(j)
The City continues to participate with other local jurisdictions in sharing information and
resources regarding CDBG and other housing programs. Meetings take place on a quarterly
basis. Additionally, when projects are funded by multiple jurisdictions, the jurisdictions involved
cooperate in an effort to reduce duplication of work and reduce project monitoring costs.
City staff will continue the following collaborative efforts to improve institutional structure:
• Joint jurisdiction Request for Proposals and project review committees
• Coordination on project management for projects funded by multiple jurisdictions
• HOME Consortium between member jurisdictions for affordable housing projects
The City is also represented at the Santa Clara County Association of Planning Officers
(SCCAPO) and Silicon Valley Leadership Group’s Housing Action Coalition (HAC) meetings.
These meetings are especially important in fostering regional approaches to providing affordable
housing.
CAPER 20
Actions taken to enhance coordination between public and private housing and social
service agencies. 91.220(k); 91.320(j)
The City benefits from a strong jurisdiction and region-wide network of housing and community
development partners, such as Regional Housing Working Group and the CoC. To improve
intergovernmental and private sector cooperation, the City participated with other local
jurisdictions and developers in sharing information and resources.
In addition to the actions listed above, the City continues to partner with nonprofit agencies to
host a yearly Housing Fair to provide residents with access to developers, BMR managers, and
housing agencies and programs. The City also leveraged its BMR AHF to assist nonprofit
affordable housing developers, including assisting Charities Housing with the financing of The
Veranda, a 100% affordable senior housing development, by providing a 25% match requirement
to the County’s HOME Consortium funds in FY 2018/2019.
Identify actions taken to overcome the effects of any impediments identified in the
jurisdictions analysis of impediments to fair housing choice. 91.520(a)
On January 12, 2012, the City Council adopted a new Analysis of Impediments (AI) to Fair
Housing Choice and the recommended policies and actions to respond to the fair housing
impediments identified in the document. The document states that the primary impediments to
fair housing choice are access to affordable housing and knowledge of fair housing services. The
City has implemented the following in response to the impediments identified in the AI:
• Facilitate access to below market rate (BMR) units. The City will continue to assist
affordable housing developers and market rate developers in advertising the availability of
BMR and affordable units via a link on the City’s website and the United Way’s 2-1-1
program, phone referrals, and other media outlets. The City will also facilitate
communications between special needs service providers and affordable housing developers,
to ensure that home seekers with special needs have fair access to available units.
• City staff continues to contract with a fair housing provider to conduct outreach and
education regarding fair housing for home seekers, landlords, property manager, real estate
agents, and lenders.
• In addition to outreach, the fair housing provider will conduct fair housing testing in local
apartment complexes.
• The City will periodically review the Zoning Ordinance to ensure regulations are consistent
with fair housing laws and do not constrain housing production. If particular zoning
requirements impede fair housing or production, the City will amend the regulations.
• The City will continue to support the HACSC to ensure adequate outreach to minority,
limited English proficiency, and special needs populations regarding the availability of public
housing and Section 8 vouchers.
• The City will continue to plan for higher residential and employment densities where
appropriate to maximize linkages between employers and affordable housing.
• The City will continue to work with local transit agencies to facilitate safe and efficient
routes for the various forms of public transit.
CAPER 21
The City is in the process of updating the Analysis of Impediments (AI) to Fair Housing Choice.
The updated AI and AFFH will be completed in February 2020.
Project Sentinel received $43,000 from the City’s BMR AHF for support of fair housing, tenant
and landlord counseling, and dispute resolution services rental mediaition activities. As noted
earlier in the report, the fair housing services activities were previously funded with CDBG
funds. In FY 2018/19, the City elected to fund the fair housing activities as part of its contract
with Project Sentinel. To combat illegal housing discrimination and ensure civil rights
protection, Project Sentinel provides comprehensive fair housing services of complaint
investigation, consultation, information and referral, and community outreach and education.
Fair housing investigations that reveal evidence of illegal discrimination are addressed through
education, conciliation, and referral to HUD or DFEH filings, or litigation. Investigative work
efforts include paired testing, surveys, witness interviews, and document review.
CAPER 22
CR-40 - Monitoring 91.220 and 91.230
Describe the standards and procedures used to monitor activities carried out in
furtherance of the plan and used to ensure long-term compliance with requirements of the
programs involved, including minority business outreach and the comprehensive planning
requirements
The City continues to actively monitor all subrecipients and projects ensuring compliance with
program and comprehensive planning requirements. Monitoring involves review of quarterly
reports, invoices with backup material, and review of agency audit reports. Annual on-site
monitoring is carried out for all CDBG subrecipients and consists of reviewing client files,
financial records, policies, procedures and compliance with federal requirements as detailed in
the subrecipient contracts.
Citizen Participation Plan 91.105(d); 91.115(d)
Describe the efforts to provide citizens with reasonable notice and an opportunity to
comment on performance reports.
A draft CAPER was made available on the City website (www.cupertino.org/housing) and at
City Hall for the required 15-day public comment period (August 23 – September 11, 2019). An
advertisement was placed in the Cupertino Courier, a newspaper of general circulation on August
23, 2019, advertising the availability of the CAPER for public review and comment. If citizens
could not physically come into City Hall to review the report, a report could be mailed or e-
mailed to the citizen free of charge. The City also makes available a TDD phone number for the
hearing impaired. The City also conducted a public hearing at the Cupertino Housing
Commission meeting held on September 12, 2019 allowing the public an opportunity to
comment on the CAPER.
CAPER 23
CR-45 - CDBG 91.520(c)
Specify the nature of, and reasons for, any changes in the jurisdiction’s program objectives
and indications of how the jurisdiction would change its programs as a result of its
experiences.
Does this Jurisdiction have any open Brownfields Economic Development Initiative (BEDI)
grants?
Not applicable.
[BEDI grantees] Describe accomplishments and program outcomes during the last year.
Not applicable.
CAPER 24
APPENDIX A
LEGAL AD AND PUBLIC NOTICE
CITY OF CUPERTINO, CONSOLIDATED ANNUAL PERFORMANCE EVALUATION
REPORT FY 2018/2019
To be inserted when available
CAPER 25
APPENDIX B
PUBLIC COMMENT
CITY OF CUPERTINO, CONSOLIDATED ANNUAL PERFORMANCE EVAULATION
REPORT FY 2018/2019
To date, no public comments have been received on the FY 2018/2019 Consolidated Annual
Performance Evaluation Report (CAPER).