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HC Resolution No. 20-03 approving of FY 2019-20 CDBG program and CAPER report DocuSign Envelope ID:DCA9823F-DEAB-4853-84DE-20AF270A5A7B RESOLUTION NO. 20-03 A RESOLUTION OF THE HOUSING COMMISSION OF 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) 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 2019-20 CDBG Annual Action Plan;now, therefore: BE IT FURTHER RESOLVED that the Housing Commission of the City of Cupertino hereby approves the 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 a special meeting of the Housing Commission of the City of Cupertino this 16th day of September 2020 by the following vote: Vote Members of the Housing Commission AYES: Chair Bose, Gandikota, Kapil, Parish NOES: None ABSENT: Vice Chair Cunningham ABSTAIN: None ATTEST: APPROVED: DoeusI9n.E by: r BIRBEC8C1284F9... Kerni Heusler Sue Bose Housing Manager Chair, Housing Commission 1 • DocuSign Envelope ID:DCA9823F-DEAB-4853-84DE-20AF270A5A7B S'C.19Sf CUPERTINO H. City of Cupertno Consolidated Annual Performance Evaluation Report (CAPER) FY 2019-2020 September 16,2020 Public Noticing of 2019-2020 CAPER Newspaper Ad Published in Cupertino Fourier on August 28,2020 Draft CAPER posted on the City'swebsite on September 4, 2020 Public Comment Period: September 14, 2020 to September 25, 2020 Virtual Housing Commission held oI September 16, 2020 at 9:00am II Contact Information: Kerni Heu'sler Housing Manager Housing Division City of Cupertino kerrihncupertino.org The CityofCupertino willprovide alternative accessibleformats ofthis document upon request. p p q 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 CAPER 1 OMB Control No:2506-0117(exp.06/30/2018) I DocuSign Envelope ID:DCA9823F-DEAB-4853-84DE-20AF270A5A7B 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 CAPER 2 OMB Control No:2506-0117(exp.06/30/2018) DocuSign Envelope ID:DCA9823F-DEAR-4853-84DE-20AF270A5A7B This page is intentionally blank. 2019-2020 CAPER 3 OMB Control No:2506-0117(exp.06/30/2018) DocuSign Envelope ID:DCA9823F-DEAB-4853-84DE-20AF270A5A7B Introduction The City of Cupertino receives annual U.S. Department of Housing and Urban Development(HUD)funding for the Community Development Block Grant(CDBG) program. Funding through the CDBG program is a key component to organizations serving households at or below 80%of area median income (AMI) in the City.As demonstrated in this 2019-2020 Consolidated Annual Performance and Evaluation Report(CAPER),the CDBG funds have been a critical funding source for the rehabilitation of affordable rental units, services of elderly and disabled seniors, case management services for low-income households to prevent homelessness, and minor home repairs to address health and safety concerns for low-income households. The City's CAPER serves as the report to HUD regarding the outcomes of the goals and objectives with resources made available through the CDBG program during the 2019-2020 Annual Action Plan and the 2015-2020 Consolidated Plan for Housing and Community Development (Consolidated Plan).This the fifth and final year that the City will be reporting on its progress in meeting the goals and objectives outlined in the 2015-2020 Consolidated Plan.As noted throughout the report, despite the recent challenges presented by the COVID-19 pandemic which has hit the County of Santa Clara and State of California particularly hard,the City has made great progress towards achieving its goals. 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 plan. In fiscal year(FY) 2019-20,the City achieved most of 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 2017-18. During the application process for FY 2018-19,the fair housing services contract was awarded to Project Sentinel. Project Sentinel is based in Santa Clara and has provided the City with rental mediation services for many years.The contract with Project Sentinel 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 2019/2020 but these goals and accomplishments are no longer reported in IDIS. During the 2019-2020 program year the COVID-19 pandemic presented unforeseen challenges for a number of the City's partner agencies.The County of Santa Clara issued a Shelter in Place Order on March 16,2020 and as of the date of this report, portions of the order still remain in effect, leaving the City's agencies and businesses closed for at least six months.As a result of the public health crisis,two of the City's subrecipients were unable to spend all of their annual allocations and two agencies were unable to meet their annual goals.The details of the issues these programs faced will be discussed in more detail later in the report. Comparison of the proposed versus actual outcomes for each outcome measure submitted with the consolidated plan and 2019-2020 CAPER 4 OMB Control No:2506-0117(exp.06/30/2018) DocuSign Envelope ID:DCA9823F-DEAB-4853-84DE-20AF270A5A7B 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. Goal Category Source/ Indicator Unit of Expected Actual- Percent Expected Actual- Percent Amount Measure - Strategic Complete - Program Complete Strategic Plan Program Year Plan Year Public Facility or Infrastructure Activities other Affordable Affordable CDBG: Persons than 0 14 100% 14 14 100% Housing Housing $120,000 Assisted Low/Moderate Income Housing Benefit Affordable Affordable CDBG: Rental units Household Housing 12 39 325.00% 2 1 50% - - Housing_ _ Housing__ __-rehabilitated-_ _— - - - -- - - -- - -- — -- ------- - - -- - g g= —-Unit-- --- ----- -- --- -- --- - - -— - - - Affordable Affordable CDBG: Homeowner Household - Housing Housing 37 42 105% 7 8 114.29% Housing Housing $81,875.00 Rehabilitated Unit Public service Non Housing activities other Fair Housing Community CDBG: than Persons 45 10 22.22% 0 0 0% Development $0.00 Low/Moderate Assisted Income Housing Benefit Public service activities other Homelessness Homeless CDBG: than Persons 500 507 101.4% 100 90 90% $35,646.16 Low/Moderate Assisted Income Housing Benefit 2019-2020 CAPER 5 OMB Control No:2506-0117(exp.06/30/2018) DocuSign Envelope ID: DCA9823F-DEAB-4853-84DE-20AF270A5A7B Public Facility or Non Infrastructure Homeless Activities other Strengthen Special Needs CDBG: Persons 0 than 35 55 157.14% 0 0 0% Neighborhoods Non-Housing $0.00 Assisted Community Low/Moderate Development Income Housing Benefit Non- Public service Homeless activities other Strengthen Special Needs CDBG: than Persons 95 201 221.6% 21 17 81% Neighborhoods Non-Housing $20,935.04 Low/Moderate Assisted Community Income Housing Development Benefit Table 1-Accomplishments—Program Year&Strategic Plan to Date 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. During the 2019-2020 program year,the City's CDBG subrecipients continued to provided vital services to extremely low-,very low-, low-and moderate-income households while addressing the priorities and needs of the community as explained in the City's 2015-2020 Consolidated Plan.The majority of the CDBG funded programs/activities meet their annual goals despite the COVID-19 pandemic and the County of Santa Clara's shelter in place order which has been in effect(and currently remains in effect) since March 16, 2020. With its CDBG funds,the City was able to fund the rehabilitation of a domestic violence safe house and an affordable rental unit.Additionally, with CDBG funds, eight low income households received needed home repairs to address health and safety concerns and preserve their housing. Seventeen (17) elderly seniors were provided adult care and ninety(90) low-income households were provided case management services to assist them in achieving self-sufficiency. The City continued to fund a number of additional programs and services through its General Fund Human Services Grant(HSG) and BMR AHF that supplemented the CDBG funded activities.The City funded Project Sentinel,who provided fair housing and tenant/landlord mediation services to the City,through its BMR AHF funds.The City also funded Haven to Home through the General Fund HSG.The Haven to Home program provides services to help homeless clients secure permanent housing, maintain employment, and enhance income opportunity.The clients receive intensive case management designed to provide easy access to resources at one location.Additionally,through the General Fund HSG,the City funded Catholic Charities(Long-term Care Ombudsman Program), Maitri (Direct Client Services to Domestic Violence Survivors), and Senior Adults Legal Assistance (Legal Assistance to Cupertino Elders). 2019-2020 CAPER 6 OMB Control No:2506-0117(exp.06/30/2018) DocuSign Envelope ID:DGA9823F-DEAB-4853-84DE-20AF270A5A7B � I 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 White 48 Black or African American I' 2 Asian 68 American Indian or American Native 1 Native Hawaiian or Other Pacific Islander I 0 American Indian/Alaska Native and White 2 Asian and White 0 Black and White 0 American Indian/Alaskan Native/Black 0 Other 9 Total 130 Hispanic 5 Not Hispanic 125 Table 2—Table of assistance to racial and ethnic populations by source of funds Narrative I I 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%)wre Other.Approximately,four percent(4%)were Hispanic. 2019-2020 CAPER 7 OMB Control No:2506-0117(exp.06/30/2018) DocuSign Envelope ID:DCA9823F-DEAB-4853-84DE-20AF270A5A7B CR-15 - Resources and Investments 91.520(a) Identify the resources made available Source of Funds Source Resources Made Amount Expended Available During 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 Citywide 100 100% 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 CAPER 8 OMB Control No:2506-0117(exp.06/30/2018) DocuSign Envelope ID:DCA9823F-DEAB-4853-84DE-20AF270A5A7B 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 i 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 tlhe 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 CharitiesHousing, applied for and received $500,000 in HOME funds from the HOME Consortium.The propertyiprovided (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 I. 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 CAPER 9 OMB Control No:2506-0117(exp.06/30/2018) Docusign Envelope ID:DCA9823F-DEAB-4853-84DE-20AF270A5A7B moderate-income, and middle-income persons served. One-Year Goal Actual Number of homeless households to be 0 0 provided affordable housing units Number of non-homeless households 0 0 to be provided affordable housing units Number of special-needs households 0 0 to be provided affordable housing units Total 0 0 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 Served CDBG Actual HOME Actual Extremely Low-income 105 0 2019-2020 CAPER 10 OMB Control No:2506-0117(exp.06/30/2018) li DocuSign Envelope.ID:DCA9823F-DEAB-4853-84DE-20AF270A5A7B Low-income 9 0 Moderate-income 1111 0 Total 125 0 Table 7—Number of Households Served Narrative Information ir 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. 1. I; I;; I I II 2019-2020 CAPER 11 OMB Control No:2506-0117(exp.06/30/2018) DocuSign Envelope ID:DCA9823F-DEAB-4853-84DE-20AF270A5A7B 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. extremely Helping low-income individuals and families avoid becoming homeless, especially 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 CAPER 12 OMB Control No:2506-0117(exp.06/30/2018) DocuSign Envelope ID: DCA9823F-DEAB-4853-84DE-20AF270A5A7B 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 CaIWORKs,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 resider is age sixty(60)or older.All clients were • presumed low/moderate income (51%to 80%AMID 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 residerts 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,1facilitating 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$35,646 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 I-SG 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 selfCsufficiency for participants.Through this funding in FY 2019-20,WVCS served forty(40) homeless individuals and families whose last address was in Cupertino. !I 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 Ib\A-income Cupertino households.Services 2019-2020 CAPER 13 OMB Control No:2506-0117(exp.06/30/2018) DocuSign Envelope ID:DCA9823F-DEAB-4853-84DE-20AF270A5A7B provided include the provision of food, clothing, legal assistance, emergency rental assistance, and a variety of other services. 2019-2020 CAPER 14 OMB Control No:2506-0117(exp.06/30/2018) DocuSign Envelope ID:DCA9823F-DEAB-4853-84DE-20AF270A5A7B 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 encouragepublic housingresidents 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 CAPER 15 OMB Control No:2506-0117(exp.06/30/2018) DocuSign Envelope ID:DCA9823F-DEAB-4853-84DE-20AF270A5A7B 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 CAPER 16 OMB Control No:2506-0117(exp.06/30/2018) DocuSign Envelope ID:DCA9823F-DEAB-4853-84DE-20AF270A5A7B Request for Proposal (RFP) process.Applications are submiltted 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.1,91.220(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 ssisted 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. H 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 jredUce 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 effort"s 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 :or 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 II(HAC) meetings.These meetings are especially important in fostering regional approaches to providing affordable housing. 2019-2020 CAPER 17 OMB Control No:2506-0117(exp.06/30/2018) it DocuSign Envelope ID:DCA9823F-DEAB-4853-84DE-20AF270A5A7B 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 (Al)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 Al: • 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(Al)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 2019-2020 CAPER 18 OMB Control No:2506-0117(exp.06/30/2018) DocuSign Envelope ID:DCA9823F-DEAB-4853-84DE-20AF270A5A7B 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 referraltto 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. I I it i i 1 Ii I I i 11 i 2019-2020 CAPER 19 OMB Control No:2506-0117(exp.06/30/2018) DocuSign Envelope ID:DCA9823F-DEAB-4853-84DE-20AF270A5A7B 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. 2019-2020 CAPER 20 OMB Control No:2506-0117(exp.06/30/2018) DocuSign Envelope ID: DCA9823F-DEAB-4853-84DE-20AF270A5A7B 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 duringthe last year. p p g Not applicable. 2019-2020 CAPER 21 OMB Control No:2506-0117(exp.06/30/2018) DocuSign Envelope ID:DCA9823F-DEAB-4853-84DE-20AF270A5A7B The Cupertino Courier Legal No. 0006511187 do Bay Area News Group CITY OF CUPERTINO NOTICE OF PUBLIC HEAR- ING FOR 2019-20 COMMUNITY DEVELOPMENT 4 N.2nd Street,Suite 800 BLOCK GRANT (CDBG) CAPER. NOTICE IS San Jose, CA 95113 WEednesday, September 16,special020 tmeeting e c City of Cupertino Housing Commission will conduct a public hearing regarding the 2019-20 CDBG CA- PER.In accordance with Governor Newsom's 2083307 Executive Order No-29-20,this will be a tele- conference meeting without a physical loca- tion. Members of the public will be able to observe and address the meeting telephoni- CITY OF CUPERTINO rally or otherwise electronically from the Cit- y's website through procedures that will be ATTN: KIRSTEN SQUARCIA detailed in the published meeting agenda.In- terested parties are invited to"attend"and be 10300 TORRE AVENUE heard.The CAPER is an annual plan required by U.S. Dept.of Housing and Urban Develop- CUPERTINO CA 95014 ment (HUD) which describes grant accom- plishments in relation to eligible activities that were undertaken with CDBG funds during FY 2019-20. The City's CAPER evaluates and as- sessesPROOF OF PUBLICATION h how w ll the rthy.was a0 t a Annual l plish the goals set forth in the 2019-20 Annu Action Plan and 2015-2020 Consolidated Plan. State of California HUD requires that the CAPER be made availa- ble for public review and public comment for fifteen days: September 10- September 25, County of Santa Clara 2020. For questions regarding the upcoming Housing FILE NO. B.Ebben: EXC-2020-O0A 2f �f Commission public hearing, please contact t Kerri Heusler,Housing Manager,at kerrih@cug ertino.org or 408-777-3251.If you wish to chal- lenge the Housing Commission's action in court,you may be limited to raising only those issues you or someone else raised at the pub- lic hearing described in this notice,or in writ- ten correspondence received by the City of Cupertino at, or prior to the public hearing. Note that Housing Commission policy is to al- I am a citizen of the United States. I am over the age of eighteen low speakers up to three(3)minutes per indi- ears and Inot a tointerested in theabovetitled vidual. Please be advised that pursuant to y am party or en Cupertino Municipal Code 2.08.100 written matter. I am the Legal AdvertisingClerk of theprinter and communications sent to the Cupertino City g Council,Commissioners or City staff concern- publisher of the Cupertino Courier,a newspaper published in the ing a matter on the agenda are included as supplemental material to the agendized item. English language in the City of Cupertino, County of Santa Clara, These written communications are accessible to the public through the City's website and State of California. kept in packet archives.You are hereby ad- monished not to include any personal or pri- vate information in written communications to the I declare that the Cupertino Courier is a newspaper of general doing sot shall constituteito ute wish waiver ofaannepublic; priva- cyi circulation as defined by the laws of the State of California as idd rights the City.0 Persons have on tneeding y specialhe information as- determined by court decree dated November 13, 1956, Case sistance to attend the under the Americans with Disabilities Act should call at Number 100637. Said decree states that the Cupertino Courier is least 48tho irneed prio to thecanepublic meetingsy to ensureadjudged to be a newspaper of general circulation for the City of commodated. PUBLICATION DATE: Cupertino, County of Santa Clara and State of California. Said August28,2020 order has not been revoked. cufrss111sT;August za,zozo I declare that the notice,of which the annexed is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates,to wit: 08/28/2020 I certify(or declare)under penalty of perjury that the foregoing is true and correct. Dated:a.441"; .‘",le' August 28,2020 Public Notice Advertising Clerk r.BP316-07n7R7 1