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HC 07-25-2019 City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 (408) 777-3308 APPROVED 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 i ORAL COMMUNICATIONS None WRITTEN COMMUNICATIONS r, None NEW BUSINESS 2.Below Market Rate (BMR) Linkage Fees Update for the Cupertino BMR Housing Program I 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 j • Recommend the following inclusionary policies: o Single Family-20% o Townhomes/Condos-between 20-25% defending on feasibility 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 121h • BMR Workshop-September 121h ADJOURNMENT: The meeting was adjourned at 11:52am to the next regularly scheduled Housing Commission meeting. Respectfully submitted: Kerri Heusler Housing Manager 2