HC Resolution No. 20-03 2019-20 CDBG annual Report CAPER signed
RESOLUTION NO. 20-03
A RESOLUTION OF THE HOUSING COMMISSIONOF THE CITY OF CUPERTINO
APPROVING THE FY 2019-20 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 2019-20 CAPER (Exhibit
1)totheUnited 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 2019-20 CDBG Annual Action Plan; now, therefore:
BE IT FURTHER RESOLVED that the Housing Commission of the City of Cupertino
hereby approvesthe FY 2019-20 CAPER; and
BE IT FURTHER RESOLVED that the City Manager is hereby authorized to submit the
FY 2019-20 CAPER approved by the Housing Commission of the City of Cupertino to HUD.
PASSED AND ADOPTED at aspecialmeetingof the Housing Commission of the City of
th
Cupertino this 16day ofSeptember 2020 by thefollowing vote:
VoteMembers of the Housing Commission
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:APPROVED:
______________
Kerri Heusler Sue Bose
Housing ManagerChair, Housing Commission
1
City of Cupertino
Consolidated Annual Performance Evaluation Report (CAPER)
FY 2019-2020
September 16, 2020
Public Noticing of 2019-2020 CAPER
Newspaper Ad Published in Cupertino Courier on August 28,2020
Draft CAPER posted on the City’s website on September 4, 2020
Public Comment Period: September 4, 2020 to September 25, 2020
Virtual Housing Commission held on September 16, 2020 at 9:00am
Contact Information:
Kerri Heusler
Housing Manager
Housing Division
City of Cupertino
kerrih@cupertino.org
The City of Cupertino will provide alternative accessible formats of this document upon request.
If you need this document in an alternative format such as large print, Braille, audiotape, or
computer disc, please contact the City at the contact information listed above.
The CAPER can also be translated to other languages upon request, please use the contact
information listed above or call 408-777-3200.
2019-2020 CAPER1
OMB Control No: 2506-0117 (exp. 06/30/2018)
Table of Contents
Introduction………………………………………………………………………………………………………4
CR-05 Goals and Outcomes ……………………………………………………………………………… 4
CR-10 Racial and Ethnic Composition of Families Assisted …………………………………7
CR-15 Resources and Investments 91.520(a)………………………………………………………8
CR-20 Affordable Housing 91.520(b)………………………………………………………………… 9
CR-25 Homeless and Other Special Needs 91.220(d,e); 91.320(d,e); 91,520(c)…12
CR-30 Public Housing 91.220(h); 91.320(j)…………………………………………………………15
CR-35 Other Actions 91.220(j)-(k); 91.320(i)-(j)………………………………………………….16
CR-40 Monitoring 91.220; 91.230………………………………………………………………………20
CR-45 CDBG 91.520(c)………………………………………………………………………………………..21
Exhibits
PR 03 CDBG Activity Summary Report
PR 06 Summary of Consolidated Plan Projects for Report 2019
PR 23 CDBG Summary of Accomplishments 2019
PR 26 CDBG Financial Summary Report 2019
PR 83 CDBG Performance Measures Report 2019
Attachments
Attachment A: Public Notice (to be attached once received from the newspaper)
Attachment B: Public Comments Received (to be completed after the completion
of the public comment period).
2019-2020 CAPER2
OMB Control No: 2506-0117 (exp. 06/30/2018)
This page is intentionally blank.
2019-2020 CAPER3
OMB Control No: 2506-0117 (exp. 06/30/2018)
.
, the
plan
the
19, the fair
pment
-
g services, the
through the
with rental
oals for FY 4
oals.
nd annual action
bjectives outlined in the
19 pandemic which has hit
-
profit service partner, to Below
-
health and safety concerns for
g non
elderly and disabled seniors, case
18. During the application process for FY 2018
-
FY 2017
2020 Consolidated Plan for Housing and Community Development
months. As a result of the public health crisis, two of the City’s
-
2020 Consolidated Annual Performance and Evaluation Report (CAPER)
-
six
2020 and as of the date of this report, portions of the order still remain in
015
,
inel includes fair housing and rental mediation services. The contract is funded
t
6
1
at least
ith Project Sen
19 pandemic presented unforeseen challenges for a number of the City’s partner agencies. The
-
in more detail later in the report.
roughout the report, despite the recent challenges presented by the COVID
. As demonstrated in this 2019
2020 CAPER
-
2020 Annual Action Plan and the 2
-
2019
income households to prevent homelessness, and minor home repairs to address
-
in the City
omes
17, the City decided to change the funding source of ECHO Housing, its fair housin
-
als and accomplishments are no longer reported in IDIS.
20, the City achieved most of its annual goals and met the five (5) year goals outlined in the Consolidated Plan. It should
program year the COVID
-
20
ms faced will be discussed
0117 (exp. 06/30/2018)
20
-
-
were unable to spend all of their annual allocations and two agencies were unable to meet their annual goals. The details of
(CDBG) program. Funding through the CDBG program is a key component to organizations serving households at or below 80% of
Goals and Outc
-
2020 Consolidated Plan. As noted th
-
income households.
05
-
-
uring the 2019
Introduction The City of Cupertino receives annual U.S. Department of Housing and Urban Development (HUD) funding for the Community DeveloBlock Grant area median income (AMI)CDBG funds
have been a critical funding source for the rehabilitation of affordable rental units, services of management services for lowlow The City’s CAPER serves as the report to HUD regarding
the outcomes of the goals and objectives with resources made availableCDBG program during the 2019(Consolidated Plan). This the fifth and final year that the City will be reporting
on its progress in meeting the goals and o2015the County of Santa Clara and State of California particularly hard, the City has made great progress towards achieving its g CRProgress
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 aIn fiscal year (FY) 2019be noted that in FY 2016Market Rate Affordable Housing Funds (BMR AHF). While the change has resulted in no CDBG funds being
utilized for fair housinCity continued to fund ECHO Housing to provide fair housing services throughhousing services contract was awarded to Project Sentinel. Project Sentinel is based
in Santa Clara and has provided the Citymediation services for many years. The contract wwith the City’s BMR AHF funds, which will be discussed later in the report. Project Sentinel
has met or exceeded its annual g2019/2020 but these go DCounty of Santa Clara issued a Shelter in Place Order on Marcheffect, leaving the City’s agencies and businesses closed forsubrecipientsissues
these progra Comparison of the proposed versus actual outcomes for each outcome measure submitted with the consolidated plan and OMB Control No: 2506
%
0%
50%90
114.29%
Percent Complete 100%
–
180
90
Actual Program Year 14
7
205
100
Expected –Program Year 14
%
%
05
1
22.22%101.4
325.00%
100%
Percent Complete
–
394210
507
Actual Strategic Plan 14
7
123
45
ategic
500
Expected –StrPlan 0
Unit of Measure Persons AssistedHousehold Housing UnitHousehold Housing UnitPersons AssistedPersons Assisted
Housing
Indicator Public Facility or Infrastructure Activities other than Low/Moderate Income BenefitRental units rehabilitatedHomeowner Housing RehabilitatedPublic service activities other
than Low/Moderate Income Housing BenefitPublic service activities other than Low/Moderate Income Housing Benefit
es and amounts, outcomes/objectives, goal outcome indicators, units of measure, targets, actual
120,00043,310.2081,875.000.0035,646.16
Source / Amount CDBG: $
CDBG: $CDBG: $CDBG: $CDBG: $
2020 CAPER
-
2019
Housing
-
Category NonCommunity Development
Affordable HousingAffordable HousingAffordable HousingHomeless
0117 (exp. 06/30/2018)
-
Goal Affordable HousingAffordable HousingAffordable HousingFair HousingHomelessness
explain, if applicable, why progress was not made toward meeting goals and objectives. 91.520(g)Categories, priority levels, funding sourcoutcomes/outputs, and percentage completed
for each of the grantee’s program year goals. OMB Control No: 2506
%
%
0
81
,
and
-
0
17
BMR AHF
, low
-
General Fund
mediation
and
)
06
21
2020 Consolidated
, very low
-
-
. The Haven to Home
%
HSG
221.6
157.14%
Additionally, through the
19 pandemic and the County of Santa
, 2020.
-
01
16
55
Human Services Grant (HSG
2
General Fund
the
l services to extremely low
at one location.
3595
Maitri (Direct Client Services to Domestic Violence Survivors)
,
income households were provided case management services to
-
stic violence safe house and an affordable rental unit. Additionally,
low
Persons Persons
AssistedAssisted
nnual goals despite the COVID
Program Year & Strategic Plan to Date
(90)
continued to provided vita
–
ertino Elders).
service
subrecipients
Public Facility or Infrastructure Activities other than Low/Moderate Income Housing BenefitPublic activities other than Low/Moderate Income Housing Benefit
Accomplishments
-
. The City also funded Haven to Home through
dult care and ninety
1
term Care Ombudsman Program)
-
particularly CDBG, addresses the priorities and specific objectives identified in the plan, giving
Table
0.0020,935.04
CDBG: $
CDBG: $
2020 CAPER
-
BMR AHF funds
2019
help homeless clients secure permanent housing, maintain employment, and enhance income opportunity. The
sufficiency.
-
Housing
Housing
----
seniors were provided a
Catholic Charities (Long
NonHomeless Special NeedsNonCommunity Development
NonHomeless Special NeedsNonCommunity Development
20 program year, the City’s CDBG
households while addressing the priorities and needs of the community as explained in the City’s 2015
eight low income households received needed home repairs to address health and safety concerns and preserve their housing.
0117 (exp. 06/30/2018)
20,
-
-
elderly
(17)
income
-
, the City funded
Strengthen NeighborhoodsStrengthen Neighborhoods
Assess how the jurisdiction’s use of funds, special attention to the highest priority activities identified. During the 2019moderatePlan. The majority of the CDBG funded programs/activities
meet their aClara’s shelter in place order which has been in effect (and currently remains in effect) since March With its CDBG funds, the City was able to fund the rehabilitation
of a domewith CDBG fundsSeventeen assist them in achieving self The City continued to fund a number of additional programs and services through its General Fundthat supplemented the
CDBG funded activities. The City funded Project Sentinel, who provided fair housing and tenant/landlordservices to the City, through its program provides services toclients receive
intensive case management designed to provide easy access to resourcesHSGand Senior Adults Legal Assistance (Legal Assistance to Cup OMB Control No: 2506
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)
CDBG
White48
Black or African American2
Asian 68
American Indian or American Native 1
Native Hawaiian or Other Pacific Islander0
American Indian/Alaska Native and White2
Asian and White 0
Black and White0
American Indian/Alaskan Native/Black 0
Other 9
Total130
Hispanic5
Not Hispanic 125
Table 2 – Table of assistance to racial and ethnic populations by source of funds
Narrative
Table 2 generated in IDIS includes five (5) racial categories and does not reflect all of the racial
categories served by the City's CDBG funded agencies. The modified Table 2 (shown above) includes the
correct racial categories for individuals served in FY 2019-20.
In total, the City’s CDBG program served one hundred and thirty (130) individuals. Of those individuals,
approximately thirty-seven percent (37%) were White; two percent (2%) were African American; fifty-
two (52%) were Asian; two percent (2%) were either American Indian/American Native, American
Indian/Alaska Native/White; and seven percent (7%) were Other. Approximately, four percent (4%) were
Hispanic.
2019-2020 CAPER7
OMB Control No: 2506-0117 (exp. 06/30/2018)
CR-15 - Resources and Investments 91.520(a)
Identify the resources made available
Source of Funds Source Resources Made Amount Expended
AvailableDuring Program Year
CDBG Public -federal $377,208.00$357,526.82
Table 3-Resources Made Available
Narrative
During the 2019-20 program year, the City received an entitlement allocation of $369,264. In addition to
the entitlement amount, the City has $7,944 in program income. The City’s program income is tracked
by the City in a separate database and is no longer entered into IDIS. The City’s finance department
discussed this approach with its HUD representative and the HUD representative agreed. Combined, the
total funds available was $377,208.
Due to the COVID-19 pandemic and the County of Santa Clara’s Shelter in Place Order, two of the City’s
subrecipients, Live Oak Community Services and Maitri, were unable to utilize all of their grant funds.
Additionally, the bid costs related to the Maitri project were higher than initially anticipated which
hinders the organization’s ability to complete the entire rehabilitation. The remaining unused funds
from the two grants total $19,681.18. These funds will be added to the City’s unused funds from
previous years and will be allocated as part of the 2021-20 Notice of Availability of Funding in late
Fall/early Winter.
Identify the geographic distribution and location of investments
Planned Actual
Target Area Percentage of Percentage of Narrative Description
Allocation Allocation
The City of Cupertino utilizes the HUD entitlement
CDBG allocation to provide services to extremely-,
very low-, low- and moderate-income households
Citywide100 100% throughout the City.
Table 4 – Identify the geographic distribution and location of investments
Narrative
The City has not established specific target areas to focus the investment of CDBG funds. The funds were
distributed Citywide.
2019-2020 CAPER8
OMB Control No: 2506-0117 (exp. 06/30/2018)
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.
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: Section 8
Housing Choice Voucher Program, Section 202, Section 811, the Affordable Housing Program (AHP)
through the Federal Home Loan Bank, and others.
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.
The BMR AHF receives its revenue from the payment of housing mitigation fees from non-residential
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.
In FY 2019-20, the City allocated $200,000 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.
In FY 2019-20, the City Council allocated $83,600 from the General Fund HSG to public and human
service agencies within the City. The monies were utilized to fund a long-term care ombudsman, client
services for victims of domestic violence, legal assistance to seniors, and housing placement and case
management services to homeless individuals and families.
The City joined the Santa Clara County HOME Consortium in 2015. As mentioned in previous CAPER
reports, the Veranda, which was developed by Charities Housing, applied for and received $500,000 in
HOME funds from the HOME Consortium. The property provided (nineteen) 19 units low-income senior
housing. The City provided a twenty-five percent (25%) match for the project.
It should be noted that the City owns one parcel that is suitable for development and is currently
undergoing a feasibility study for the development of affordable housing.
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,
2019-2020 CAPER9
OMB Control No: 2506-0117 (exp. 06/30/2018)
moderate-income, and middle-income persons served.
One-Year Goal Actual
Number of homeless households to be 00
provided affordable housing units
Number of non-homeless households 00
to be provided affordable housing
units
Number of special-needs households 00
to be provided affordable housing
units
Total00
Table 5 – Number of Households
One-Year Goal Actual
Number of households supported through
Rehab of Existing Units 9 9
Total 9 9
Table 6 – Number of Households Supported
Discuss the difference between goals and outcomes and problems encountered in meeting these
goals.
In FY 2019-20, Rebuilding Together Silicon Valley (RTSV) exceed its annual goal to rehabilitated seven (7)
homes occupied by low-income households. RTSV provided health and safety repairs to eight (8) low-
income households. In FY 2019-20, West Valley Community Services (WVCS) planned to repair two (2)
affordable rental units. One (1) of the households refused the needed repairs so the agency was only
able to repair one (1) unit of rental affordable housing.
Discuss how these outcomes will impact future annual action plans.
As discussed above, RTSV exceeded its annual goal and WVCS was unable to meet its goal. Overall, the
CDBG funds were utilized to repair and address health and safety issues in nine (9) housing units. This is
the City’s last year reporting on the goals outlined in the 2015-2020 Consolidated Plan. However, the
City will continue to address the affordable housing needs of its community.
As mention previously, although fair housing activities are no longer funded with CDBG dollars, the City
continues to fund a fair housing service provider with its BMR AHF funds. The fair housing service
provider met it annual fair housing goals in FY 2019-20.
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.
Number of Households ServedCDBG Actual HOME Actual
Extremely Low-income 105 0
2019-2020 CAPER10
OMB Control No: 2506-0117 (exp. 06/30/2018)
Low-income 90
Moderate-income110
Total 125 0
Table 7–Number of Households Served
Narrative Information
In total, one hundred and thirty (130) persons were served through the City’s CDBG funded services. Of
the individuals/households served, one hundred and five (105) were extremely-low income, nine (9)
were low income and eleven (11) were moderate income. Five (5) were non-moderate (above 80%
AMI). It should be pointed out that the households that were above moderate were served at the Live
Oak Adult Day Care facility and were elderly and disabled residents who fall within HUD’s presumed
benefit category.
2019-2020 CAPER11
OMB Control No: 2506-0117 (exp. 06/30/2018)
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 the first built development to take utilize 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. Although
currently not in effect, this 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.
Additionally, in FY 2019-20, the City provide CDBG funds for the rehabilitation of a domestic violence
shelter in Cupertino. The funds addressed a major safety repair issue involving the roofs of the property.
In FY 2019-20, the City provided $25,000 to Maitri through the General Fund 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 2019-20, the City provided $35,646 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,
2019-2020 CAPER12
OMB Control No: 2506-0117 (exp. 06/30/2018)
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. 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 2019-20, the City provided General Fund HSG and/or BMR AHF to the following
organizations:
Senior Adult Legal (SALA) – Received $10,600 from the General Fund HSG. SALA provided free
legal services to fifty-one (51) Cupertino residents age sixty (60) or older. All clients were
presumed low/moderate income (51% to 80% AMI) by HUD because they are elderly (age 60 or
older).
Maitri – Received $25,000 from the General Fund HSG. With the funds, Maitri provided case
management services to nine (9) Cupertino residents and provided housing search assistance to
eight (8) Cupertino residents.
Catholic Charities - $10,600 from the General Fund HSG. Catholic Charities provided needed
advocacy of elders living in long-term care facilities. In total, two hundred and forty-four (244)
unduplicated residents were contacted.
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 andfamilies who were
recently homeless from becoming homeless again.
As mentioned above, the City provided $35,646 in CDBG funds to WVCS to administer its CARE program.
CARE 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 2019-20, the City provided $40,000 in General Fund HSG to WVCS for the Haven to Home (HTH)
program. The goal of 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 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 2019-20, WVCS served forty (40) homeless individuals and families whose last address was in
Cupertino.
In total in FY 2019-20, the City allocated approximately $56,581 in CDBG and $83,600 in General Fund
HSG money to provide a variety of support services for low-income Cupertino households. Services
2019-2020 CAPER13
OMB Control No: 2506-0117 (exp. 06/30/2018)
provided include the provision of food, clothing, legal assistance, emergency rental assistance, and a
variety of other services.
2019-2020 CAPER14
OMB Control No: 2506-0117 (exp. 06/30/2018)
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 (4)
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.
2019-2020 CAPER15
OMB Control No: 2506-0117 (exp. 06/30/2018)
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, on May 19, 2020, the City Council adopted an update to
the BMR Residential Housing and Commercial Linkage Fees. As part of this update, the City conducted
an economic feasibility analysis that reviewed fees associated with development and potential policy
updates to the BMR Program. The City took the following actions:
Amended the BMR Housing Mitigation Program Procedural Manual (Housing Mitigation Manual)
to increase the affordable housing (BMR) requirement for ownership projects from 15% to 20%,
and to make other conforming changes consistent with State law,
Amended the Housing Mitigation In-Lieu Fees to increase the fees for offices, research and
development, and industrial space to $30 per square foot and the fees for hotels to $15 per
square foot;
Received a report on Housing Solutions, Including Opportunities to Increase Housing Supply for
Extremely Low-Income Households and Approaches to Encourage BMR Housing Production by
Non-Residential Land Uses.
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 (7) 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
2019-2020 CAPER16
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Request for Proposal (RFP) process. Applications are submitted to the County Office of Supportive
Housing (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 2018-19. The property provided eighteen (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 percent (25%) match as part of total contribution of forty-
three percent 43% ($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 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 RFP 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.
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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 Continuum of Care (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, 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 2018-19.
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 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 (www.cupertino.org/housing) 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.
In a joint effort with the County of Santa Clara and Cities, the City is currently updating the Analysis of
Impediments (AI) to Fair Housing Choice. The Cupertino AFH Plan Is expected to be completed in
Winter/Spring 2021.
Project Sentinel received $43,000 from the City’s BMR AHF for support of fair housing, tenant and
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landlord counseling, and dispute resolution services rental mediation 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. In FY 2019-2020,
the Fair Housing Center at Project Sentinel opened and investigated seven cases in Cupertino.
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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.
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 (September 10– September 25, 2020). An advertisement
was placed in the Cupertino Courier, a newspaper of general circulation on August 28, 2020, advertising
the availability of the CAPER for public review and comment. The draft CAPER was posted on the City’s
website on September 10, 2020. Due to COVID-19, copies of the CAPER could be mailed or e-mailed to
citizens free of charge. The City also makes available a TDD phone number for the hearing impaired. The
City also conducted a virtual public hearing at the Cupertino Housing Commission meeting held on
September 16, 2020 allowing the public an opportunity to comment on the CAPER.
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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.
Not applicable. The City does not plan to change the CDBG program objectives.
Does this Jurisdiction have any open Brownfields Economic Development Initiative (BEDI)
grants?
No, there are no open Brownfields Economic Development Initiative (BEDI) grants.
\[BEDI grantees\] Describe accomplishments and program outcomes during the last year.
Not applicable.
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