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HomeMy WebLinkAboutHC 3-26-26 Amended Searchable PacketCITY OF CUPERTINO HOUSING COMMISSION AGENDA 10185 North Stelling Road, Quinlan Conference Room and via Teleconference Thursday, March 26, 2026 5:30 PM Amended Amended on 3/23/2026 at 11:45 a.m. to add agenda Item No. 5. IN-PERSON AND TELECONFERENCE / PUBLIC PARTICIPATION INFORMATION OPTIONS TO OBSERVE: Members of the public wishing to observe the meeting may do so in one of the following ways: 1) Attend in person at Quinlan Community Center, Conference Room, 10185 N. Stelling Road. 2) Watch a live stream online at https://youtube.com/@cupertinocitycommission. 3) Attend in person at a remote Teleconference Location noticed pursuant to Gov. Code 54953(b)(2), which location, if noticed, would be stated on the cover page of this agenda. OPTIONS TO PARTICIPATE AND COMMENT: Members of the public wishing to address the Housing Commission may do so in the following ways: 1) Appear in person at Quinlan Community Center, Conference Room, 10185 N. Stelling Road: A. During “Oral Communications”, the public may comment on matters not on the agenda, and for agendized matters, the public may comment during the public comment period for each agendized item. B. Speakers are requested to complete a Speaker Card. While completion of Speaker Cards is voluntary and not required to attend the meeting or provide comments, it is helpful for the purposes of ensuring that all speakers are called upon. C. Speakers must wait to be called and may begin speaking when recognized by the Chair. D. Speakers are limited to three (3) minutes each. However, the Chair may reduce the speaking time depending on the number of people who wish to speak on an item. A Page 1 1 HC 02-26-2026 1 of 136 Housing Commission Agenda March 26, 2026 speaker representing a group of 2 to 5 or more people who are present may have up to 2 minutes per group member, up to 10 minutes maximum. E. Please note that due to cyber security concerns, speakers are not allowed to connect any personal devices to any City equipment. However, speakers that wish to share a document (e.g. presentations, photographs or other documents) during oral comments may do so by: a. E-mailing the document to housingcommission@cupertino.gov by 2:00 p.m. and staff will advance the slides/share the documents during your oral comment. 2) Written communications as follows: A. E-mail comments to housingcommission@cupertino.gov. B. Regular mail or hand delivered addressed to the: Cupertino Housing Commission, City Hall, 10300 Torre Avenue, Cupertino, CA 95014 C. Comments addressed to the Housing Commission received by 3:00 p.m. on the day of the meeting will be included in written communications published and distributed before the beginning of the meeting. D. Comments addressed to the Housing Commission received after the 3:00 p.m. deadline, but through the end of the Commission meeting, will be posted to the City’s website by the end of the following business day. 3) Teleconference in one of the following ways: A. Online via Zoom on an electronic device (Audio and Video): Speakers must register in advance by clicking on the link below to access the meeting: https://cityofcupertino.zoom.us/webinar/register/WN_qWJJ_r-9Qw-l5JR8faRcvw a. Registrants will receive a confirmation email containing information about joining the webinar. b. Speakers will be recognized by the name they use for registration. Once recognized, speakers must click ‘unmute’ when prompted to speak. c. Please read the following instructions about technical compatibility carefully: One can directly download the teleconference (Zoom) software or connect to the meeting in their internet browser. If a browser is used, make sure the most current and up-to-date browser, such as the following, is used: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality may be disabled in older browsers, including Internet Explorer. B. By Phone (Audio only): No registration is required in advance and speakers may join the meeting as follows: a. Dial 669-900-6833 and enter WEBINAR ID: 846 5517 5303 b. To “raise hand” to speak: Dial *9; When asked to unmute: Dial *6 c. Speakers will be recognized to speak by the last four digits of their phone number. Page 2 2 HC 02-26-2026 2 of 136 Housing Commission Agenda March 26, 2026 C. Via an H.323/SIP room system: H.323 Information: 144.195.19.161 (US West) 206.247.11.121 (US East) Meeting ID: 846 5517 5303 SIP: 84655175303@zoomcrc.com D. Online via the teleconferencing device (Audio and Video) being used to provide access to the meeting from a remote Teleconference Location noticed pursuant to Gov. Code 54953(b)(2), which location, if noticed, would be stated on the cover page of this agenda. a) Speakers are required to notify the City Clerk via email to cityclerk@cupertino.gov prior to noon on the date of the meeting during which they plan to participate and comment from the remote location noticed to ensure the City Clerk is prepared to accept their comment. b) If the teleconferencing device malfunctions impeding access to the meeting from the remote location, the speaker may alternatively participate via the other options for remote participation provided above. PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF MINUTES 1.Subject: Approval of the December 08, 2025 Housing Commission Minutes. Recommended Action: Approve the December 08, 2025 Housing Commission Minutes. A - Draft Minutes POSTPONEMENTS ORAL COMMUNICATIONS This portion of the meeting is reserved for persons wishing to address the Commission on any matter within the jurisdiction of the Commission and 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 on the agenda. OLD BUSINESS - None NEW BUSINESS 2.Subject: Election of Chair and Vice Chair. Recommended Action: Elect a Chair and Vice Chair of the Housing Commission. Page 3 3 HC 02-26-2026 3 of 136 Housing Commission Agenda March 26, 2026 3.Subject: Housing Commission Annual Work Plan for Calendar Year 2026. Recommended Action: Consider and adopt the proposed Work Plan for 2026. Staff Report A - Housing Commission Work Plan 2026 4.Subject: Selection update for consultant for City’s Below Market Rate (BMR) Housing Program Administration in response to the City Request for Proposals (RFP). Recommended Action: Receive presentation on the selection process of the City’s Below Market Rate (BMR) Administrator. Staff Report A - Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units B - 2025 RFP BMR Program Administration 5.Subject: Fiscal Year (FY) 2026-27 Community Development Block Grant (CDBG) Program and Below Market Rate Affordable Housing Fund (BMR AHF) funding allocations. Recommended Action: Consider the FY 2026-27 CDBG and BMR AHF funding applications and make recommendations to City Council for final approval. Staff Report A - FY 2026-27 NOFA B - City Council April 15, 2025 Minutes C - Housing Commission Resolution 17-02 (CDBG Contingency Plan) D - CDBG and BMR AHF FY 26-27 NOFA Commissioner Evaluations E - FY 2025-26 CDBG and BMR AHF Funding Allocations Summary STAFF AND COMMISSION REPORTS FUTURE AGENDA SETTING ADJOURNMENT In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend this 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, at least 48 hours in advance of the meeting to arrange for assistance. In addition, 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. 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, Cupertino, California 95014, during normal business hours. IMPORTANT NOTICE: Please be advised that pursuant to Cupertino Municipal Code section 2.08.100 written communications sent to the City Council, Commissioners or staff concerning a matter Page 4 4 HC 02-26-2026 4 of 136 Housing Commission Agenda March 26, 2026 on the agenda are included as supplemental material to the agendized item. These written communications are accessible to the public through the City website and kept in packet archives. Do not include any personal or private information in written communications to the City that you do not wish to make public, as written communications are considered public records and will be made publicly available on the City website. Page 5 5 HC 02-26-2026 5 of 136 CITY OF CUPERTINO Agenda Item ..Title Subject:Approval of the December 08, 2025 Housing Commission Minutes. Approve the December 08, 2025 Housing Commission Minutes. CITY OF CUPERTINO Printed on 3/20/2026Page 1 of 1 6 HC 02-26-2026 6 of 136 DRAFT MINUTES HOUSING COMMISSION Monday, December 8, 2025 At 5:30 p.m. Chair Connie Cunningham called the Special Housing Commission meeting to order at the Quinlan Conference Room, 10185 North Stelling Road, and via teleconference and teleconference location Grand Chennai by GRT120, Sir Thyagaraya Road, Chennai, Tamil Nadu, 600017 ROLL CALL Present: Chair Connie Cunningham, Vice Chair Usha Narayan (participated remotely), and Commissioners Lida Xhindi and Ram Sripathi (arrived at the meeting at 5:34 p.m.). Absent: Jasmine Jose. APPROVAL OF MINUTES 1. Subject: Approve the minutes of the October 23, 2025 Housing Commission Meeting. Recommended Action: Approve the minutes of the October 23, 2025 Housing Commission Meeting. Commissioners made comments. MOTION: Xhindi moved and Narayan seconded to approve the October 23, 2025 Housing Commission Meeting Minutes. The motion passed with the following vote: Ayes: Cunningham, Narayan, Xhindi. Noes: None. Abstain: None. Absent: Jose, Sripathi. POSTPONEMENTS – None. ORAL COMMUNICATIONS – None. CONSENT CALENDAR – None. OLD BUSINESS – None. NEW BUSINESS 2. Subject: Study session to explore policies and programs for tenant protections and anti-displacement for renters in market rate units. Recommended Action: Receive presentation and recommend approval of tenant protection policy and anti-displacement programs for tenants residing in market rate units to City Council for adoption. 7 HC 02-26-2026 7 of 136 Housing Commission December 8, 2025 Senior Housing Coordinator Nicky Vu gave a presentation. Commissioners asked questions which staff responded to. Chair Cunningham opened the public comment period, and the following people spoke: • Raniaipono Tapia • Maya Sui Chair Cunningham closed the public comment period. MOTION: Sripathi moved to recommend housing programs including rent mediation and legal defense, as well as the Tenant Protection Ordinance: rent stabilization, just cause protections, and fee regulations, and to present the implementation plan to City Council, with the addition of studying city-owned properties as a resource for how it can be used for anti-displacement SUBSTITUTE MOTION: Cunningham moved and Xhindi seconded to recommend housing programs including rent mediation and legal defense, as well as the Tenant Protection Ordinance: rent stabilization, just cause protections, and fee regulations, and to present the implementation plan to City Council, with the addition of studying city- owned properties as a resource for how it can be used for anti-displacement add exploring a lower, more protective maximum rent stabilization policy. The motion carried with the following vote: Ayes: Cunningham, Narayan, Sripathi, Xhindi. Noes: None. Abstain: None. Absent: Jose. 3. Subject: Study fiscal impacts of federal housing program budget cuts and government shutdown, approve resolution to recommend the City Council increase funding to local housing programs through the Human Services Grant (HSG). Recommended Action: Receive presentation and approve the resolution to recommend the City Council approve a funding allocation increase to City low-income housing programs to mitigate impacts of federal housing program budget cuts and government shutdown. Senior Housing Coordinator Nicky Vu gave a presentation. Commissioners asked questions which staff responded to. Chair Cunningham opened the public comment period, and seeing no one, closed the public comment period. MOTION: Sripathi moved and Xhindi and Narayan seconded to approve the resolution to City Council to recommend an annual funding increase of $152,000 for a grand total of $281,000 with an annual CPI increase to the Human Services Grant. The motion carried 8 HC 02-26-2026 8 of 136 Housing Commission December 8, 2025 with the following vote: Ayes: Cunningham, Narayan, Sripathi, Xhindi. Noes: None. Abstain: None. Absent: Jose. STAFF AND COMMISSION REPORTS – Vice Chair Narayan reported on the Mayor’s Meeting, including discussion of staff support for the Commission, overlapping commission responsibilities, and the possibility of forming subgroups. It was ultimately determined that Commission members may attend other commission meetings but should defer discussion to the respective commissions. The Mayor also discussed considerations regarding Commission composition, including whether renters should be added. Director of Community Development Benjamin Fu stated that having a renter is a consideration, along with seniors, homeless persons, etc. to the Commission. Chair Cunningham emphasized the importance of getting different perspectives on the Commission. FUTURE AGENDA SETTING – None ADJOURNMENT At 6:54 p.m. Chair Cunningham adjourned the special Housing Commission Meeting. Minutes prepared by: Lindsay Nelson, Administrative Assistant 9 HC 02-26-2026 9 of 136 CITY OF CUPERTINO Agenda Item Subject: Election of Chair and Vice Chair. Elect a Chair and Vice Chair of the Housing Commission. CITY OF CUPERTINO Printed on 3/23/2026Page 1 of 1 10 HC 02-26-2026 10 of 136 CITY OF CUPERTINO Agenda Item Subject:Housing Commission Annual Work Plan for Calendar Year 2026. Consider and adopt the proposed Work Plan for 2026. CITY OF CUPERTINO Printed on 3/23/2026Page 1 of 1 11 HC 02-26-2026 11 of 136 HOUSING COMMISSION STAFF REPORT March 26, 2026 Subject Housing Commission Annual Work Plan for Calendar Year 2026. Recommended Action Consider and adopt the proposed Work Plan for 2026. Background The Housing Commission work plan intends to serve as a roadmap to guide the Commission’s major efforts and initiatives for the year. The work plan also ensures that these efforts align with the City Council’s broader goals, such as the FY 25-27 City Work Plan and the 2023-2031 Housing Element. These goals may include but are not limited to public engagement & transparency, transportation, housing, quality of life, environmental sustainability, and fiscal strategy. In December 2025, staff contacted commissioners requesting input on potential activities and policies that they wanted to focus on for 2026. The attached work plan reflects th e responses received, as well as priorities that Commissioners have expressed interest in during past meetings. One item requested in the work plan was prioritizing the most time sensitive Housing Element strategies for 2026. Additionally, there was interest in policies and programs related to tenant protections, as well as anti-displacement and homelessness prevention policies. Finally, previous discussion reflected a desire for overall transparency with the Below Market Rate (BMR) program. This meeting is an opportunity to consider and discuss the proposed work plan and timeline before formal adoption. Discussion 2026 Housing Commission Work Plan • Election of Chair/Vice-Chair (March 26) • Confirmation of Meeting Schedule and Work Plan (March 26) 12 HC 02-26-2026 12 of 136 • Below Market Rate Administrator Request for Proposal (RFP) Selection Update (March 26) • Housing Funding Notice of Funding Available (NOFA) Funding Recommendations (March 26) • Submittal of FY 2026-2027 Community Development Block Grant (CDBG) Annual Action Plan (May 28) • Re-zoning and/or Annexations to Ensure Compliance with Housing Element No Net Loss Provisions (May 28) • Submittal of FY 2025-2026 Consolidated Annual Performance Evaluation Report (CAPER) (September 24) • Amendment to the Housing Mitigation Manual for City -wide Fee-Update and Nexus Study (September 24) • Announcement of FY 2027-2028 Housing Funding Notice of Funding Available (NOFA) (October 22) • Update on Draft Ordinances Related to Tenant Protection and Programs for Anti - Displacement (October 22) The dates provided for the proposed workplan will be formally scheduled into the City’s Public Meeting Calendar with the Clerk’s Office. However, should emerging priorities require the rescheduling of certain items or additional items to be added, Special Meetings of the Housing Commission may be required and added as necessary. Recommendation Consider and adopt the proposed Housing Commission Work Plan for 2026. Sustainability Impact No sustainability impact. Fiscal Impact No fiscal impact. Prepared by: Evelin Meza, Assistant Housing Coordinator Reviewed by: Nicky Vu, Senior Housing Coordinator Luke Connolly, Assistant Director of Community Development Approved for Submission by: Benjamin Fu, Director of Community Development Attachments: A – 2026 Housing Commission Work Plan 13 HC 02-26-2026 13 of 136 #Project/Task Project Objective Justification Is this item related to the City Work Program, mandated by law, or Council priority/direction? (If not, please specify rationale) Council Goal Estimated timeline 1 Election of Chair and Vice Chair Select a new Housing Commission Chair and Vice Chair to serve one-year term Consistent with Cupertino Municipal Code, Chapter 2.68.050 Public Engagement and Transparency Annual - March 2 Confirmation of Meeting Schedule and Work Plan Review and adopt calendar and work plan for calendar year 2026 Consistent with the City's Work Program Public Engagement and Transparency Annual - March 3 Below Market Rate Administrator Request For Proposal (RFP) Selection Update Assist in evaluating the BMR administrator selection Residential Housing Mitigation Program; and Cupertino Municipal Code, Chapter 2.86.100, which outlines the Commissioners duties Housing February 2026 - March 2026 4 Funding Available (NOFA) Funding Recommendations Review and make recommendations regarding requests for funding through CDBG and BMR Affordable Housing Funds 2.34 Below Market Rate Affordable Housing Fund and HE-5.1.2 Supportive Services for Lower- Income Households and Persons with Special Needs; and Cupertino Municipal Code, Chapter 2.86.100, which outlines the Commissioners duties Housing February 2026 - March 2026 5 Development Block Grant (CDBG) Annual Action Plan Assist in developing housing policies and strategies for implementation of General Plan Housing Element goals and Persons with Special Need; the 2025-2030 Grant (CDBG) Consolidated Plan; and Cupertino the Commissioners duties Housing April 2026 - May 2026 6 Re-zoning and/or Annexations to Ensure Compliance with Housing Element No Net Loss Provisions Assist in developing housing policies and strategies for implementation of General Plan Housing Element goals Rezoning to Achieve RHNA and HE-1.3.12 Track Housing Production; and Cupertino Municipal Code, Chapter 2.86.100, which outlines the Commissioners duties Housing April 2026 - May 2026 Housing Commission 2026 Work Plan 14 HC 02-26-2026 14 of 136 #Project/Task Project Objective Justification Is this item related to the City Work Program, mandated by law, or Council priority/direction? (If not, please specify rationale) Council Goal Estimated timeline 7 Annual Performance Evaluation Report (CAPER) Review and provide feedback to annual report Community Development Block Grant (CDBG) Consolidated Plan; and Cupertino Municipal Code, Chapter 2.86.100, which outlines the Commissioners duties Housing August 2026 - September 2026 8 Mitigation Manual for City- wide Fee Update and Nexus Study Review and provide feedback on updated fees for Housing Mitigation Manual Mitigation Program Procedural Manual, adopted by City Council July 2, 2024; City Work Program Item 4: Defensible Impact Fee Nexus Study for Traffic Impact Fee, Retail Impact Fee, BMR Impact Fee, and Parkland Impact Fee; Housing Element Strategy HE-2.3.9 Review Impact Fee; and Cupertino Municipal Code, Chapter 2.86.100, which outlines the Commissioners duties Housing August 2026 - September 2026 9 Announcement of FY 2027- 2028 Housing Notice of Funding Available (NOFA) Make recommendations regarding requests for funding from the CDBG and Affordable Housing Funds 2.34 Below Market Rate Affordable Housing Fund and HE-5.1.2 Supportive Services for Lower- Income Households and Persons with Special Needs; and Cupertino Municipal Code, Chapter 2.86.100, which outlines the Commissioners duties Housing September 2026 - October 2026 10 Tenant Protection and Programs for Anti- Displacement Assist the Planning Commission and City Council in developing housing policies and strategies for implementation of General Plan Housing Element goals Tenant Protections; and Cupertino Municipal Code, Chapter 2.86.100, which outlines the Commissioners duties Housing September 2026 - October 2026 * All items on this list must fall within the Commission/Committee scope in the Cupertino Municipal Code Public Engagement and Transparency 15 HC 02-26-2026 15 of 136 #Project/Task Project Objective Justification Is this item related to the City Work Program, mandated by law, or Council priority/direction? (If not, please specify rationale) Council Goal Estimated timeline Transportation Housing Quality of Life Environmental Sustainability Fiscal Strategy 16 HC 02-26-2026 16 of 136 CITY OF CUPERTINO Agenda Item Subject: Selection update for consultant for City’s Below Market Rate (BMR) Housing Program Administration in response to the City Request for Proposals (RFP). Receive presentation on the selection process of the City’s Below Market Rate (BMR) Administrator. CITY OF CUPERTINO Printed on 3/23/2026Page 1 of 1 17 HC 02-26-2026 17 of 136 HOUSING COMMISSION STAFF REPORT March 26, 2026 Subject Selection update for consultant for City’s Below Market Rate (BMR) Housing Program Administration in response to the City Request for Proposals (RFP). Recommended Action Receive presentation on the selection process of the City’s Below Market Rate (BMR) Administrator. Background BMR Housing Mitigation Program The City’s Housing Mitigation Program (BMR Program) was adopted in 1992 to generate affordable housing. The ordinance requires developers to provide a specified number of affordable owner-occupied and rental units. BMR for-sale units are made available to median and moderate-income households. BMR rental units are made available to low and very low- income households. The units are developed in accordance with City Council adopted guidelines, which are available for view on the City’s Housing website (www.cupertino.org/housing) known as the Below Market Rate Housing Mitigation Program Procedural Manual (Housing Mitigation Manual). Separately, administration of the BMR Program is governed by another City Council adopted guideline known as Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units (BMR Admin Manual). BMR Program Administration The City has overall responsibility for the BMR Program although the administration may be contracted out to another agency. The consultant contract was previously funded through the BMR Affordable Housing Fund (AFH) but under recent City Council direction, may be funded by the City General Fund for the foreseeable future. Typical consultant duties include program outreach, waitlist management, certification and eligibility review, resale and refinance coordination, and annual program monitoring and compliance. The City has contracted with Rise Housing (formerly Hello Housing) for BMR Program Administration since 2017. To ensure that the City’s program remains innovative and follows 18 HC 02-26-2026 18 of 136 2 best practices, staff determined it was appropriate to pursue a Request for Proposal (RFP), included as Attachment B. The City placed a public notice in the Cupertino Courrier notifying the public of the open RFP inviting qualified consultants to provide proposals to administer the City’s BMR Program. The RFP was sent to contacts in the Santa Clara County affordable housing field, including multiple agencies that have direct experience in BMR Program Administration. Discussion RFP Selection Process The RFP was open for responses between November 3, 2025, until closing on December 3, 2025. Three qualified consultants responded to the RFP with complete applications: RISE Housing, Housing Inc, and HEART of San Mateo County. The three applications were scored by a panel of City staff according to the rubric provided. The scoring criteria included the following categories: Firm and Project Team Qualifications, Work Plan Approach, California/Bay Area Integration, and Pricing/Costs. According to City procurement standards, the criteria related to qualifications and experience were evaluated first and given higher priority in scoring, while cost estimates were evaluated separately afterwards and given less priority. Between the three applications, those that scored in the top two were invited to participate in interviews with City staff to further demonstrate their qualifications. Afterwards, one applicant has been selected to continue with further negotiations prior to contract execution which will be authorized during an upcoming public hearing of the City Council. The highest scoring applicant is RISE Housing. Firm and Project Team Qualifications This category was for applicants to demonstrate their experience relevant to running Cupertino’s BMR program and to include relevant staff resumes responsible for administering the program. All three applicants demonstrated a strong ability to perform the duties of Below Market Rate Administration and listed several relevant examples of experience providing these services to a local municipality. Similarly, all three applicants also listed several experienced and qualified staff to complete the necessary tasks in the proposal. However, RISE Housing scored the highest due to experience in running BMR programs in similar size jurisdictions in the Bay Area. RISE Housing also has direct experience running the City of Cupertino’s program specifically and understanding in the City’s rules and regulations, as well as upcoming program demands and expectations. Housing Inc scored second highest by having experience running BMR Administration in other Santa Clara cities. HEART of San Mateo County scored third for having relevant experience performing BMR Administration for San Mateo County cities but none in Santa Clara County thus far. Work Plan Approach This category was for applicants to demonstrate their knowledge of Cupertino’s BMR portfolio, the work necessary that would be needed to administer the program, and how they would improve processes. Housing Inc and RISE Housing both displayed the highest knowledge of work expectations with the changing size of the portfolio, citing expiring BMR rental units, pipeline BMR ownership projects, and anti-displacement policy efforts. Housing Inc initially scored the highest in this category during the preliminary evaluation stage. However, during the interview stage, between the two organizations, RISE Housing improved their score and 19 HC 02-26-2026 19 of 136 3 was the highest in this category due to demonstration of a deep understanding and knowledge of the intensive supportive service and direct client assistance that would be required to provide to tenants of expiring BMR rental units. Detailed and time-consuming coordination is essential to the tenants being housed at the end of covenant expirations and successfully rehomed. California/Bay Area Integration This category was for applicants to demonstrate their knowledge of the California state laws that would affect program processes and regional Bay Area best practices for BMR Administration to implement for the Cupertino program. HEART of San Mateo County and Housing Inc scored highly in this category due to both suggesting integrating the City’s BMR waitlist with the Bay Area Housing Finance Authority (BAHFA) Doorways Housing Portal. HEART of San Mateo County was able to score highest in this category due to also suggesting reducing the City’s share of costs by moving BMR resale costs to be a fee charged to sellers in the program, a common practice for BMR Administration in other jurisdictions. Pricing/Costs This category is the most empirical in terms of scoring. Applications are scored on the completeness of their cost proposal and then ranked from least expensive to most expensive. According to City procurement standards, all reviewers conferred and matched their responses for this category to have a uniform scoring standard. Housing Inc provided competitive pricing for administrative services. However, their proposal included only per-rate pricing for other workplan items, leaving them open to fluctuations. Both RISE Housing and HEART of San Mateo County provided complete cost proposals that provided complete estimates for an entire year of services. HEART of San Mateo County provided the least expensive complete estimate, which lead to them scoring highest in this category. Therefore, RISE Housing scored second highest while Housing Inc scored third. Analysis All three applicants are highly qualified, competent, and worthy of consideration for the role of BMR Administrator for the City of Cupertino. In the upcoming program years of BMR Administration for the City, the most prominent issue affecting the inventory will be the expiration of affordability covenants of 95 rental units. While this at first glance appears to a reduction on workload, staff expect the workload to shift from unit recertification to negotiations on final leases, assisting tenants with reapplication to the BMR waitlist, and general support to tenants as they search for a new home. Therefore, there may be an actual increase in workload per unit. RISE Housing has demonstrated the strongest understanding and preparation of the work and expectations for the City’s unique challenges in the upcoming years of BMR administration. Therefore, RISE Housing is currently the recommended organization to be selected for the consultant in response to the RFP. Housing Inc and HEART of San Mateo County suggested several innovative process improvements that would greatly benefit the BMR program, and showed deep commitments to providing affordable housing to low-income residents. They should both be considered during future procurements for BMR Administrator. Staff will enter into further negotiations with RISE Housing before bringing a contract for execution before a public hearing with City Council. 20 HC 02-26-2026 20 of 136 4 Fiscal Impact The upcoming BMR Administration contract is expected to be funded by the General Fund, in accordance with direction from the City Council. Costs will be finalized during final negotiations, but are currently estimated to impact the General Fund by approximately $160,000 per year for the next three fiscal years. Administratively, the contract will be charged to general ledger project code 100-72-711 for the General Fund, rather than 265-72-711 in the BMR AHF Fund. Process A public meeting will be held at a future City Council meeting to authorize the City Manager to execute a contract with RISE Housing. Prepared by: Nicky Vu, Senior Housing Coordinator Reviewed by: Luke Connolly, Assistant Director of Community Development Approved for Submission by: Benjamin Fu, Director of Community Development Attachments: A - Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units (BMR Admin Manual) B - 2025 RFP BMR Program Administration 21 HC 02-26-2026 21 of 136 Exhibit A Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units (Attached) 22 HC 02-26-2026 22 of 136 Approved by the City Council June 17, 2025 Resolution No. 25-051 City of Cupertino Housing Division Department of Community Development 10300 Torre Avenue Cupertino, CA 95014 Voice: (408)777-3251 Fax: (408)777-3330 23 HC 02-26-2026 23 of 136 TABLE OF CONTENTS Contents 1.0 Introduction ........................................................................................................................ 1 2.0 Application Selection Process ........................................................................................... 1 2.1. Conflict of Interest ................................................................................................. 1 2.2. Priority Point Placement System ........................................................................... 2 2.3. Requests for Reasonable Accommodation ........................................................... 2 2.4. Housing Constructed for People with Disabilities ............................................... 3 2.5. BMR Applicant Waitlist ........................................................................................ 3 2.5.1. Solicitation of Applicants ............................................................................ 4 2.5.2 Submitting a BMR Waitlist Application Form .......................................... 4 2.5.3. Submitting a BMR Program Application ................................................... 4 2.5.4 Application Fees .......................................................................................... 4 2.5.5 Eligibility Process to Reapply on BMR Waitlist ......................................... 4 2.5.6 Applicant’s Right to Refuse BMR Unit ...................................................... 5 2.6. False Statements ..................................................................................................... 5 3.0 Minimum Homebuyer/Tenant Eligibility Requirements ............................................... 5 3.1. Household Minimum Size Requirements ............................................................. 6 3.2. Household Composition ........................................................................................ 6 3.3. Definition of Employment in Cupertino ............................................................... 6 3.4. Definition of Residency in Cupertino ................................................................... 6 3.5. Definition of Displaced Below Market Rate Rental Tenant and Special Circumstances Households…………………........................................................6 3.6. Annual Gross Income ............................................................................................. 7 3.6.1. Documentation to Verify Sources of Income ............................................. 7 3.7. Assets ....................................................................................................................... 8 3.7.1. Documentation to Support Assets............................................................... 8 4.0 Ownership Units- Requirements for Buying a BMR Unit .............................................. 9 4.1. Income Limits ......................................................................................................... 9 4.1.1. Co-applicants ............................................................................................... 9 4.1.2. Credit Score ................................................................................................. 9 4.2. Asset Limit .............................................................................................................. 9 4.2.1. Minimum Cash Available.......................................................................... 10 4.2.2. Gift Funds ................................................................................................. 10 4.3. Definition of First-time Homebuyer .................................................................... 10 4.4. Affordable Sale Price Determination .................................................................. 10 4.4.1. Initial Prices of Newly Constructed Units ................................................ 10 4.4.2. Prices of Existing BMR Units ................................................................... 10 4.5. Financing .............................................................................................................. 10 4.5.1. Lenders ...................................................................................................... 10 4.5.2. Loan Requirements ................................................................................... 11 4.5.3. Insurance Requirements ........................................................................... 11 4.6. Occupancy Conditions ......................................................................................... 11 4.7. Required Pre-Purchase Education ...................................................................... 11 24 HC 02-26-2026 24 of 136 4.8. Documents for Completing Home Purchase ...................................................... 11 4.9. Term of Affordability ........................................................................................... 12 4.10. Annual Monitoring .............................................................................................. 12 4.10.1. Failure to Submit Annual Certification ................................................... 12 5.0 Rental Units- Requirements for Renting a BMR Unit .................................................. 12 5.1. Income Limits ....................................................................................................... 12 5.1.1. Minimum Income Requirements .............................................................. 13 5.1.2. Co-Signers ................................................................................................. 13 5.2. Asset Limit ............................................................................................................ 13 5.2.1. Documentation to Support Assets............................................................. 13 5.3. Qualification as Renter ........................................................................................ 14 5.4. Rental Rate Determination .................................................................................. 14 5.5. Previewing of Unit ................................................................................................ 14 5.6. Occupancy Conditions ......................................................................................... 14 5.7. Annual Rent Adjustments ................................................................................... 14 5.8. Annual Re-Certification of Income ..................................................................... 15 5.9. Terms of Tenancy ................................................................................................. 15 6.0 Requirements of Apartment Owners and Property Managers ................................... 15 6.1. Availability of New Units for Lease..................................................................... 15 6.2. Eligible Prospective Tenants ............................................................................... 15 6.3. Prospective Tenant’s Previewing of Unit ............................................................ 16 6.4. Executed Lease Agreement .................................................................................. 16 6.5. Annual Rent Adjustments ................................................................................... 16 6.6. Owner/Manager Certification ............................................................................. 16 6.7. Terms of Affordability Covenants ...................................................................... 16 6.8. Terms of Lease ..................................................................................................... 16 6.9. Occupancy Requirements .................................................................................... 17 7.0 Appeal Process .................................................................................................................. 17 8.0 Authority ........................................................................................................................... 18 List of Exhibits Exhibit 1 BMR Waitlist Application Form Exhibit 2 BMR Program Application (Ownership) Exhibit 3 BMR Program Application (Rental) Exhibit 4 24 CFR 5.609 and Excerpts from the Technical Guide for Determining Income and Allowances for the HOME Program Exhibit 5 Buyer’s Disclosure Statement Exhibit 6 BMR Renter Occupancy Certification Exhibit 7 Certificate of Receipt of Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units Exhibit 8 BMR Lease Addendum Exhibit 9 Capital Improvement Request Form 25 HC 02-26-2026 25 of 136 1.0 Introduction As required by Section 19.172.030 of the Cupertino Municipal Code, this Manual establishes procedures for the on-going administration of the inventory of affordable units, also referred to as Below Market Rate (BMR) units, created by the City of Cupertino’s Residential Housing Mitigation Program. The manual includes procedures and guidelines for prioritizing applicants, evaluating the eligibility of applicants, setting maximum affordable sales and rents prices, and monitoring compliance of homeowners and tenants with the recorded affordability covenants. The manual will provide guidance to City staff, the City’s program administrator (agent), BMR homeowners, BM R renters, and property m a n a g e r s of rental complexes that contain BMR units. The attached exhibits and certain portions of this manual will be updated as necessary to comply with regulations and policies of the United States Department of Housing and Urban Development (HUD), State of California Department of Housing and Community Development (HCD), and City Housing Element and zoning ordinance. A separate manual, the “Below Market Rate (BMR) Housing Mitigation Program Procedural Manual,” establishes the procedures for implementing the City’s Housing Mitigation Program. In accordance with the City’s Housing Element, all new residential and/or non-residential developments are required to help mitigate project-related impacts on affordable housing needs. The City of Cupertino has overall responsibility for the BMR program although the administration may be contracted out to another agency. The guidelines in this Manual must be interpreted in conjunction with the City’s Housing Element, zoning, and documents implementing the BMR program. 2.0 Application Selection Process 2.1. Conflict of Interest The following individuals are ineligible to purchase or rent a BMR unit: • City employees and officials (and their immediate family members and dependents) who have policy-making authority or influence regarding City housing programs, participate in making decisions regarding City housing programs, administer City housing programs, or whose salary is paid in any part from a City housing program; • Any consultant to the City and employees of the consultant (and their immediate family members and dependents) who have policy-making authority or influence regarding City housing programs, participate in making decisions regarding City housing programs, administer City housing programs, or whose salary is paid in any part from a City housing program; • An applicant for or developer of the project containing the BMR units and its officers and employees (and their immediate family members), and the property owner of the project and its officers and employees (and their immediate family members); or • Any other individual who has a conflict of interest as defined by federal or state law or the City’s adopted Conflict of Interest Code. In addition, if an employee of any consultant involved with City housing programs is on the waitlist for any BMR unit, all review of that employee’s application must be performed by the City. The City will screen for applicants that fall under this conflict of interest policy when verifying income sources and employers at the time of application. 26 HC 02-26-2026 26 of 136 2.2. Priority Point Placement System The City has established a priority point placement system that reflects the City’s priorities regarding placement of households into the limited number of BMR affordable units in the City. Under the priority point placement system, the highest preference is given to displaced tenants of below market rate rental units with expiring covenants (a household that is or was a tenant of a BMR unit within twelve (12) months of deed restriction expiration). Second highest preference is given to applicants who live and/or work in Cupertino, with an additional priority point awarded to public employees who work in Cupertino (for instance, school district employees, City employees, police, fire, post office, etc.). The priority point placement system point scale is listed below. Applicants must qualify for priority points at the time of application and again at the time of review for a BMR ownership or rental unit. Applicants can receive up to a maximum of 7 points based on the following criteria below: Three Points = Displaced Below Market Rate rental tenant Applicants receiving seven points shall be considered the highest priority; applicants receiving six points shall be considered the second highest priority; applicants receiving fix points shall be considered the third highest priority; and so forth until applicants receiving zero points shall be considered the lowest priority. In addition, applicants who have been displaced from rental housing in Cupertino by public or private redevelopment shall receive a priority over all other applicants. 2.3. Requests for Reasonable Accommodation The City and its agent have an obligation to provide a "reasonable accommodation" to applicants if they or any family members have a disability or handicap, as defined by law, that requires a change in the usual application process. A reasonable accommodation is some modification or change that we can make to the policies or procedures that will assist an otherwise eligible applicant with a disability to take advantage of the City's BMR program. Examples of a reasonable accommodation include: • Making large type documents or a reader available to a vision impaired applicant during the application process; • Permitting an outside agency to assist an applicant with a disability to meet the property's screening criteria; or • Permitting a sign language interpreter to assist a hearing impaired applicant during the application process. An applicant that has a family member with a disability must still be able to meet the essential obligations of the BMR program. Potential renters must be able to pay rent, care for their apartments, report required information to the owner, avoid disturbing neighbors, etc., but there is no requirement that they be able to do these things without assistance. Potential homeowners must have adequate income to support a mortgage and meet other eligibility criteria. 27 HC 02-26-2026 27 of 136 If you or a member of your household has a disability or handicap and think you might need or want a reasonable accommodation, you may request it at any time in the application process. If you would prefer not to discuss your situation with us, that is also your right. 2.4. Housing Constructed for People with Disabilities Some BMR units may be specially constructed to be accessible for people with disabilities. In the event that an accessible unit becomes available, persons with disabilities on the waitlist will be provided a preference for those BMR units. 2.5. BMR Applicant Waitlist The waitlist application period for BMR ownership and rental units will open on the first business day of October annually. At that time, BMR ownership and rental waitlist application forms will be accepted. The waitlist application period will close on the last business day of October annually. Anyone who wishes to be included on the waitlist must apply each year within this time frame, including those who were on the waitlist in previous years. Each waitlist application form will be separated into a subgroup based on priority points. For applicants reapplying for a position on the waitlist, the applicant will maintain their current position on the waitlist from the previous year, provided the applicant continues to qualify for a BMR unit and their priority points remain unchanged. Applicants who are no longer income eligible, or who do not reapply, will be removed from the waitlist each year. Making it to the waitlist does not confer any rights or privileges beyond the qualification opportunities described in this Manual. Within 30 business days of the submission deadline (the last business day of October), the City or its agent will conduct a lottery for new applicants. Along with the City or its agent, two witnesses must assist with the lottery. New applicants will be added to the bottom of the list of the priority group for which they are eligible, after applicants who were on the list in previous years and continue to qualify. The lottery will be performed for the new applicants within each priority group to randomly assign each applicant a waitlist number. For example, a new applicant who qualifies for three priority points will be placed into the lottery with the other new applicants who qualify for three priority points and all of the new applicants will be placed in the order generated by the lottery below those with priority points who were already on the list within that priority group and who continue to qualify. All candidates will be emailed/mailed results of their applications by the end of December annually specifying if they have been denied or approved, and if approved, their applicant number on the waitlist. The waitlist will become effective January 1st- December 31st of the following year. BMR units that become available will be offered based upon the order of the waitlist within each priority group. If there is no eligible household in the highest priority group, the City or its agent will then look at applicants in the second highest priority group and so on. BMR units that become available will be offered to households whose self-reported income and household size match the available unit and in the order of the waitlist in each priority group. Current BMR tenants are not eligible to apply for the BMR Rental Waitlist, with the exception 28 HC 02-26-2026 28 of 136 of Displaced BMR Rental Tenants. If current BMR tenants desire to change their BMR units, either within or between buildings, they must first vacate their current unit and then return to the BMR Rental Waitlist. Exceptions will be made for current tenants who request a reasonable accommodation and Displaced BMR Rental Tenants. 2.5.1. Solicitation of Applicants Applications for BMR ownership and rental units shall be solicited as necessary to maintain an adequate number of applications in each of the following applicant pools: BMR Ownership Units • Median Income (up to 100% Area Median Income or AMI) • Moderate Income (up to 120% AMI) BMR Rental Units • Very Low-Income (up to 50% AMI) • Low Income (up to 80% AMI) Outreach shall be conducted through the City’s website, program brochures, community workshops, presentations and periodic print media advertising. The City or its agent shall be responsible for updating the content on the City’s website and distributing program brochures that are culturally and linguistically appropriate to the community. These brochures will be available at City Hall, the Cupertino Public Library, the Quinlan Community Center, the Cupertino Senior Center, and other appropriate locations. Furthermore, the City or its agent shall conduct outreach efforts through local media that are culturally and linguistically appropriate to the community. 2.5.2. Submitting a BMR Waitlist Application Form See Exhibit 1 for a sample copy of the BMR Waitlist Application Form for ownership and/or rental units. 2.5.3. Submitting a BMR Program Application See Exhibit 2 for a sample copy of the BMR Program Application (Ownership). See Exhibit 3 for a sample copy of the BMR Program Application (Rental). 2.5.4 Application Fees BMR application and administrative fees may change from time to time. As a result, the most recently approved application and administrative fees will be disclosed by the City or its agent at the time of application annually in October for both BMR ownership or rental units. There will be no annual fee to maintain an applicant’s place on the waitlist. 2.5.5. Eligibility Process to Reapply on BMR Waitlist An applicant must reapply each year to remain on the waitlist. All applicants must apply annually in October. The only exceptions are those desiring an additional priority as Displaced BMR Tenants. They must apply within (90) ninety days of receiving a displacement notice if caused by redevelopment. Otherwise they must reapply anytime within (12) twelve months before their unit’s affordability expiration date or anytime afterwards. 29 HC 02-26-2026 29 of 136 Provided the applicant continues to qualify for a BMR unit and their priority points remain unchanged, the applicant will maintain their current position on the waitlist from the previous year. Applicants who are no longer income eligible or who do not reapply will be removed from the waitlist each year. Priority points are not guaranteed from year to year. If an applicant loses any priority points since the last year's application, that applicant will be assigned to the next appropriate priority group and will receive a waitlist number within that priority group. If there are other applicants on the list in the lower priority group who were in that priority group on the previous year’s waitlist, the applicant who lost the priority point(s) will be placed below the people who were already in the priority group during the prior year. A similar process will be followed if an applicant gains priority points. Candidates must keep the City or its agent informed about their current mailing address, telephone contact information, employment information, household composition, or any substantial changes in income that may affect the applicant’s eligibility to remain on the waitlist. 2.5.6. Applicant’s Right to Refuse BMR Unit An applicant has two opportunities annually to refuse a BMR unit and retain their place on the waitlist. If an applicant refuses a third time, then they will be placed at the bottom of the waitlist. 2.6. False Statements During the BMR application process or annual recertification, households that intentionally make false statements or misrepresent any facts on the application to purchase or rent a BMR unit, or on the annual recertification, will be removed from the BMR waitlist and barred from re-applying for a BMR unit in Cupertino in the future. If the City or its agent should discover that a contract was completed by a purchaser or renter who intentionally made false statements or misrepresented the facts in order to appear eligible or remain eligible, the City will treat this as a breach of the Occupancy, Refinancing, and Resale Restriction Agreement with Option to Purchase (Resale Agreement) or rental restrictions and may exercise any remedies allowed under the Resale Agreement and/or rental restrictions and any and all remedies allowable by law. 3.0 Minimum Homebuyer/Tenant Eligibility Requirements Every purchaser or tenant of a BMR unit must meet specific minimum eligibility requirements, as follows: • Annual gross household income (including the income of all household members 18 years of age and older) must not exceed the maximum income limits established for the BMR unit; • All owners and tenants must live in the BMR unit as a primary residence; and • Potential owners must be able to obtain primary mortgage financing and have a minimum of 5.0% of the BMR purchase price for down payment plus closing costs (gift funds are allowed). 30 HC 02-26-2026 30 of 136 3.1. Household Minimum Size Requirements To ensure that the City's limited BMR units are used efficiently, a household must be of at least a size equal to the number of bedrooms in the BMR unit. For instance, to be eligible to purchase or rent a three-bedroom unit, a household must contain at least three members. Minimum household occupancy standards for BMR units are: 1 bedroom unit = 1 person 2 bedroom unit = 2 persons 3 bedroom unit = 3 persons 4 bedroom unit = 4 persons 3.2. Household Composition A household is comprised of one or more persons who may or may not be related. An unborn child can be counted in family size once there is medical confirmation of pregnancy. An adoption in process will be counted in family size with verification of the adoption process being underway. A child will be considered part of the household when the child lives with a single parent for at least 75% of the time or in instances of joint custody, at least 50%. The applicant will need to submit a copy of the divorce decree and/or child custody agreement as verifiable documentation. If a divorce is in process, it may not be possible to qualify an applicant because family size and financial status are unclear. If the applicants are proposing to combine households with the purchase of the BMR, the combined household must meet eligibility requirements and combined income must meet the household income limits. 3.3. Definition of Employment in Cupertino A letter or verification of employment shall serve as sufficient proof of employment in Cupertino. 3.4. Definition of Residency in Cupertino Residing in Cupertino means: Occupying and renting, at the time of application for at least one month prior to the application date, a bone fide rental dwelling unit (mobile home and SRO units, or) within the Cupertino limits, as evidenced by a valid third-party documentation (e.g. current lease, CA driver’s license or vehicle registration card, and/or utility bills showing applicant’s name and street address in Cupertino). For homeless applicants, evidence that the applicant’s last permanent residence was located in Cupertino and/or documentation from a case manager or homeless service provider may be used to document applicant’s current status in Cupertino, which may include places or structures other than a bona fide dwelling unit (i.e. tent, vehicle, etc.) 3.5. Definition of Displaced Below Market Rate Rental Tenant and Special Circumstance Households A Displaced Below Market Rate Rental Tenant means: an income qualified household which is or was a tenant of a below market rate rental unit with an expiring affordability covenant within twelve (12) months of deed expiration in a market rate development, who may qualify for priority replacement as outlined in Section 2.2 (Priority Point Placement System) of the 31 HC 02-26-2026 31 of 136 BMR Manual. A Special Circumstance Household means: a Displaced Below Market Rate Rental tenant with any of the following characteristics: a. At least one (1) member is sixty-two (62) years of age or older b. At least one (1) member qualifies as disabled as defined by Title 42, Unit States Code, Section 423, or handicapped as defined by California Health and Safety Code Section 50072. c. A household with one (1) or more minor children (under eighteen (18) years of age) who are legally dependent (as determined for federal income tax purposes). d. A household that has occupied their unit as their primary residence for five (5) or more consecutive years. 3.6. Annual Gross Income Applicants' household annual gross income shall be calculated in accordance with the Technical Guide for Determining Income and Allowances for the HOME Program published by the U.S. Department of Housing and Urban Development, as it may be amended (the HOME Guide), and 24 CFR 5.609, attached as Exhibit 4. See Section 4.1 for income limits for an ownership unit. See Section 5.1 for income limits for a rental unit. The HOME Guide is available here: http://portal.hud.gov/huddoc/19754_1780.pdf 24 CFR 5.609 is available here: https://www.gpo.gov/fdsys/pkg/CFR-2016-title24- vol1/xml/CFR-2016-title24-vol1-sec5-609.xml Exhibit 4 provides the definitions of what is included and excluded from the determination of annual gross income in accordance with the Code of Federal Regulations. In summary, gross household income is the sum of all the income for every adult, 18 years or older, living in the unit. Sources of income include all wages or salaries, overtime pay, commissions, fees, tips, bonuses and other compensation, net income from a business or profession or from the rental of real or personal property, interest and dividends, payments received from social security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, payments in lieu of earnings, public assistance, alimony and child support received, and any other sources of income. 3.6.1. Documentation to Verify Sources of Income The gross annual incomes of all household members age 18 or older are considered when determining eligibility. The types of income to be verified and the type of documentation that will be requested will include: • For rental applicants, signed copies of federal tax return for the most recent year. If the federal tax return for the most recent year has not been filed, then a signed copy of the federal tax return for the previous year plus evidence of income in the most recent year (W2 forms, 1099 forms) shall be provided. For ownership applicants, this same information is required for the three most recent years. • Copies of payroll stubs or other verification of employment for the last two 32 HC 02-26-2026 32 of 136 consecutive months. • Bank statements for the last two consecutive months (used to verify that the applicant meets asset requirements as defined in Section 3.6 Assets6Assets). All income determinations are based primarily on the applicant’s income for the past year as evidenced by the documents listed above and additional verification, if requested, as listed below. Income calculations will not factor in any speculative or uncertain projections of future earnings, such as calculations of bonuses and overtime. Where major changes have occurred in life circumstances since the applicant’s last year of employment, including only such major changes as retirement, job loss or gain, changes in base pay, or disability or death of a wage earner, the City may deduct projected income losses or add projected income gains from the applicant’s income for the past year. Additional income verification may also be requested as follows: Source of Income Documentation public accountant or bookkeeper including a most recent quarterly profit/loss statement 3.7. Assets There are limits to the amount of assets that are used for eligibility for ownership and rental units. See Section 4.2 for asset limits for an ownership unit. See Section 5.2 for asset limits for a rental unit. 3.7.1. Documentation to Support Assets The table below represents what is included and excluded as assets and the type of documentation that will be requested. Assets Documentation Mutual Fund/Money Market Fund, Certificates of Deposit (C.D.) statement of current value; for stock prices attach a copy of recent dated newspaper or online source that 33 HC 02-26-2026 33 of 136 Trust Copies of most recent document Gift Signed Gift Letter by all parties Personal Loan Letter or loan agreement Down Payment Assistance Loan Copy of Agreement Individual Development Match Account Copy of two most recent statements Other Verification from source 4.0 Ownership Units- Requirements for Buying a BMR Unit 4.1. Income Limits The BMR ownership program is designed to assist first-time median- and moderate-income homebuyers. The BMR ownership program uses income limits published by HCD annually for Santa Clara County, per household size. HCD’s income limits include the median- and moderate-income categories and income limits are adjusted per household size. BMR ownership program income limits per household size are published annually. • Median Income (up to 100% AMI) • Moderate Income (up to 120% AMI) Current median- and moderate-income ranges are available here: http://www.cupertino.org/our-city/departments/community- development/housing/affordable-housing-program/bmr-purchase-program 4.1.1. Co-applicants The City or its agent will accept one application per household. A co-applicant is defined as an adult member of the household whether related or unrelated who intends to apply for the BMR unit, be on the title of the property with the applicant, and occupy the unit as his or her primary residence. The combined income and assets of all adult members of the household (including co- applicants) to purchase a BMR unit must not exceed the maximum income limits per household size and asset limitations of the program. All co- applicants must go through the same process as the applicant and must agree to comply with the program requirements. Non-occupant co-signors are not allowed to assist with the BMR purchase. 4.1.2. Credit Score All applicants and co-applicants must have a minimum middle (3 credit bureau reporting) FICO credit score of 660. Credit score will be verified at the time of application and the applicant(s) will be responsible for all fees associated with the credit report. 4.2. Asset Limit Households with assets over $100,000 or 30% of the BMR purchase price, whichever is greater, held in the United States or foreign countries will not be eligible to purchase a BMR home. Excluded from assets are: all non-accessible funds, including any assets that generate a penalty when withdrawn i.e. 401K, CALPERS, STRS, and other pension plans. See Section 3.6 for a definition of assets and a list of documents that must be submitted to support the calculation of assets. 34 HC 02-26-2026 34 of 136 4.2.1. Minimum Cash Available Buyer must contribute a minimum of 3% of their own funds towards down payment. In other words, buyer’s Combined Loan to Value Ratio (CLTV) may not exceed 97%. Buyer must contribute a minimum of 5.0% of the BMR purchase price for down payment plus closing costs (gift funds are allowed). 4.2.2. Gift Funds Gift funds for the purchase of a BMR unit will be counted towards the applicant’s overall asset limit. Applicant(s) may receive up to 27% of the BMR purchase price in gift funds as evidenced by a gift letter signed by all parties involved. 4.3. Definition of First-time Homebuyer An applicant must be a first-time homebuyer to be considered for a BMR ownership unit. An applicant shall be considered a first-time homebuyer if they have not owned a home for at least three years. This definition applies to properties owned in the United States as well as foreign countries. An exception will be made for people who were homeowners prior to a divorce or legal separation. The City or its agent may verify first-time homebuyer status by (1) reviewing mortgage deductions on the three most recent years of federal tax returns for each adult in the applicant’s household; (2) a signed statement on the application stating homeownership status; and (3) a title search. 4.4. Affordable Sale Price Determination 4.4.1. Initial Prices of Newly Constructed Units Newly constructed initial BMR sales prices will be determined by the City or its agent. The City or its agent will calculate newly constructed initial BMR sales prices for both median- and moderate-income based on the maximum affordable housing cost provisions of Section 50052.5 of the California Health and Safety Code, Section 6920 of the California Code of Regulations, and most recent published HCD income limits. A 10% down payment and a mortgage interest rate that is the ten (10) year rolling average of 30-year interest rate data provided by Freddie Mac will be assumed when calculating initial pricing. 4.4.2. Prices of Existing BMR Units Resale prices for existing BMR units will be determined by the City or its agent. The City or its agent will reference the Resale Agreement recorded on the title of the existing BMR unit when calculating the BMR resale price. 4.5. Financing 4.5.1. Lenders Prospective purchasers of BMR units must seek and obtain primary mortgage financing in order to purchase a BMR unit. There is no prearranged City financing; however, the City and its agent maintain a list of City approved BMR lending institutions who have provided written 35 HC 02-26-2026 35 of 136 confirmation through their underwriting and/or bond department that their lending institution is able to provide primary mortgage financing with the City’s BMR requirements. In order to qualify as an approved BMR lender the institution must have reviewed and approved the City’s Resale Restriction Agreement, Deed of Trust, and Promissory Note in advance. From time to time the City may require additional training in order for a lending institution to maintain its status as an approved City BMR lender. 4.5.2. Loan Requirements The primary first mortgage loan must be a fully amortized 30-year term fixed principal and interest loan. Interest only loans, negative amortization loans, adjustable rate loans, and reverse mortgage loans are not permitted. In some cases the primary 30-year fixed principal and interest loan may be combined with down payment assistance, mortgage assistance or a community program second loan. Under this scenario the primary and secondary lenders must receive written approval from the City. 4.5.3. Insurance Requirements Prior to the sale of any unit, the City shall require that each purchaser secure a standard homeowner’s insurance policy, with the City named as an additional insured. The City will be entitled to any policy proceeds in excess of the affordable unit purchase price if the proceeds are not used to rebuild the home. The insurance policy shall be in an amount equal to the replacement value of the home. At least every five (5) years, the replacement value must be reviewed and adjusted as needed. If the owner hires a contractor to work on the home, the contractor must be licensed and carry liability and workers compensation insurance. 4.6. Occupancy Conditions All owners of BMR units must occupy the premises as his or her principal place of residence for at least ten (10) months out of each calendar year. Each owner shall provide an annual written certification to the City that the owner is occupying the premises as his or her principal place of residence. Any absence from the premises by an owner for a period of sixty (60) or more consecutive days shall be deemed an abandonment of the premises as the principal residence of owner, and the City may declare a default under the Resale Agreement. The City or its agent has the right to review occupancy on a case-by-case basis. 4.7. Required Pre-Purchase Education After the applicant(s) are placed on the BMR Ownership Waitlist and before closing escrow on a BMR unit, the applicant(s) must attend a BMR pre-purchase education workshop from a qualified HUD approved agency. Certificates of completion must be provided as proof of participation at, or prior to, close of escrow for all adults who will be on title of the property. 4.8. Documents for Completing Home Purchase The following documents must be read and signed by the Owner(s) before the sale or resale of a BMR unit is completed: • Buyer's Disclosure Statement (Exhibit 5) 36 HC 02-26-2026 36 of 136 • Promissory Note • Deed of Trust • Occupancy, Refinancing, and Resale Restriction Agreement with Option to Purchase (Resale Agreement) • Request for Notice Under Section 2924b of California Civil Code The Resale Agreement requires owners of BMR units to live in their home as their principal place of residence and prohibits renting the home except in cases of hardship. It also limits the price at which the homes can be sold. If the owner sells the home above the restricted price, then the owner must pay the City the difference between the restricted price and the sales price. In addition, the owner must follow certain steps and procedures when deciding to sell the home. The City has an option to purchase a BMR home at the restricted price whenever the owner decides to sell the home or if the owner violates any agreements. The purpose of the Promissory Note, Deed of Trust, and Resale Agreement is to make sure that BMR homes remain affordable to other BMR households upon resale. The Buyer's Disclosure Statement (Exhibit 5) should be reviewed by all applicants who desire to purchase BMR homes. It summarizes the major provisions of the other documents to ensure that a BMR owner understands his or her obligations under the program. The City or its agent will provide the other documents to any interested applicant and to all applicants who are considered for purchase of a particular BMR unit. 4.9. Term of Affordability The resale restrictions imposed on each BMR affordable unit pursuant to the program shall remain in effect for a period of 99 years from the date of original sale of that unit. Furthermore, the resale restrictions shall renew at each change of title. 4.10. Annual Monitoring The City or its agent shall monitor compliance of all the requirements of the BMR program, including, but not limited to, occupancy. The owner shall cooperate with the City and provide required certifications and any reasonable requests for supporting documentation to confirm compliance within fifteen (15) days of receipt of a written request by the City. The City or its agent has the right to review occupancy on a case-by-case basis. 4.10.1. Failure to Submit Annual Certification If the City determines that an owner has intentionally made false statements or misrepresented any facts on the annual certification, or if an owner fails to submit the Certification of Owner Occupancy, the City will treat this as a breach of the Resale Agreement and the Deed of Trust and will take all legal remedies available, including forced sale of the unit. 5.0 Rental Units- Requirements for Renting a BMR Unit 5.1. Income Limits The BMR rental program is designed to assist very low- and low-income households. In some instances, specific units are restricted to extremely low-income as evidenced in the 37 HC 02-26-2026 37 of 136 project’s affordable housing agreement. The BMR rental program uses income limits published by HCD annually for Santa Clara County, per household size. HCD’s income limits include the very low- and low-income categories and income limits are adjusted per household size. BMR rental program income limits per household size are published annually. • Extremely Low-Income (up to 30% AMI) • Very Low-Income (up to 50% AMI) • Low Income (up to 80% AMI) Current very low- and low-income ranges are available here: http://www.cupertino.org/our- city/departments/community-development/housing/affordable-housing-program/bmr- rental-program 5.1.1. Minimum Income Requirements A minimum income, determined by each BMR rental property owner and manager, is required of applicants. The minimum income requirement may not exceed a requirement of gross monthly income of over three (3) times the BMR rental rate. 5.1.2. Co-Signers Non-occupant co-signers are not allowed to assist with the BMR rentals. 5.2. Asset Limit For households applying to be a tenant of a BMR unit, the maximum asset limit is equal to the maximum household income adjusted for household size that is allowable in order to be eligible for the program. The maximum allowable household income limits for the BMR rental program are published annually. Assets are calculated based on account balances at the time of application. 5.2.1. Documentation to Support Assets The following chart contains the types of assets to be verified and the type of Assets Documentation Checking Account, Savings Account, Mutual Fund/Money Market Fund, Certificates of Deposit (C.D.) statement of current value; for stock prices attach a copy of recent dated newspaper or online source 38 HC 02-26-2026 38 of 136 5.3. Qualification as Renter Applicant(s) cannot own a home and/or be on title of a property when applying for the BMR rental program. 5.4. Rental Rate Determination The City or its agent will determine the rental rates for BMR units by income level and household size. The rents will be determined based on annual HCD published income limits and section 50053 of the California Health and Safety Code. Annual Rent (inclusive of fees and utilities) for extremely low-income units cannot exceed 30% of 30% of the area median income adjusted for the size of the household appropriate for the unit. Annual Rent (inclusive of fees and utilities) for very low-income units cannot exceed 30% of 50% of the area median income adjusted for the size of the household appropriate for the unit. Annual Rent (inclusive of fees and utilities) for low- income units cannot exceed 30% of 60% of the area median income adjusted for household size appropriate for the unit. Rent includes all charges related to occupancy of the unit including utilities, parking fees, fees for use of common facilities, and other fees and charges. If utilities are not paid by the property owner, the rent for the BMR units must be adjusted downward to allow for a utility allowance calculated in accordance with the utility allowances published by the Santa Clara Housing Authority annually. 5.5. Previewing of Unit The City or its agent will coordinate with the apartment owner/property manager to preview the BMR unit. Living in a BMR Rental Unit 5.6. Occupancy Conditions The approved BMR tenant(s) must occupy the BMR unit during the entire term of the lease. If an additional occupant (roommate, family member, etc.) moves into the BMR unit, he/she will be considered part of the existing household. In such cases, the BMR tenant must notify the City or its agent prior to the move in date, and the entire household (including the new occupant) will be reevaluated to determine eligibility, including household income requirements. If the tenant(s) fail to receive approval from the City for any changes in occupancy or if the tenant(s) subleases the property, the tenant household will no longer be eligible to occupy the BMR unit. To qualify as a household member, the Head of Household and Co-Head of Household must occupy the unit as their primary residence for at least 10 months of the year. Any absence from the premises by a Head of Household or Co-Head of Household for a period of sixty (60) or more consecutive days shall be deemed an abandonment of the premises as the principal residence of tenant, and the City may declare a default under the rental restrictions. The City or its agent has the right to review on a case- by-case basis. 5.7. Annual Rent Adjustments Maximum BMR rents will be adjusted annually based on the most recently published HCD 39 HC 02-26-2026 39 of 136 income limits for Santa Clara County per household size and also in accordance with the California Health and Safety Code Section 50053. The most recent BMR rent levels will be included in the BMR program materials. The City or its agent will notify the property owner of the new rental rates. If the owner chooses to raise rents, the tenant will be given a 60 day notice before any rent increase. 5.8. Annual Re-Certification of Income At least once a year, the City or its agent shall requalify BMR tenants to verify that they are eligible to remain in BMR rental units. The City or its agent will provide the “BMR Renter Occupancy Certification Form” (Exhibit 5) to apartment owners/property managers. If the BMR renter fails to submit a signed Occupancy Certification Form within thirty (30) days of the written request, then the lease shall automatically terminate, and the renter must vacate the unit within thirty (30) days of written notice from the apartment owner/property manager. If the renter fails to vacate the unit, the apartment owner/property manager will institute evictions proceedings. On an annual basis, re-certification shall be based upon the BMR tenant’s household income as determined by, copies of payroll stubs or other verification of employment for the last two consecutive months, prior year tax returns, bank statements for the last two consecutive months, and household size. If a very low-income BMR tenant’s household income increases and exceeds the BMR income limits for very low-income household but does not exceed the BMR income limits for a BMR low-income household, then the tenant's rent will be increased to BMR low-income rents, and the tenant may remain in the unit until a suitable BMR low-income unit becomes available. If a tenant's household income increases and exceeds the BMR income limits for a low-income household, the tenant will be given three (3) months to locate alternate housing and vacate the BMR rental unit. A three (3) month extension may be granted in cases of extreme hardship. In the event that a tenant no longer meets the household minimum size requirements (see Section 3.1) for their unit, such tenant's household may be moved to a smaller unit when an appropriately sized unit becomes available in the same property, in accordance with the terms of the tenant's lease. 5.9. Terms of Tenancy BMR tenants will be subject to the same conditions of tenancy as other tenants occupying the same property, except for terms relating to occupancy, income eligibility, annual recertification, and limits on rents. The initial BMR lease term is for one year. 6.0 Requirements of Apartment Owners and Property Managers 6.1. Availability of New Units for Lease An affordable BMR unit may not be leased until the City has approved the unit for occupancy. 6.2. Eligible Prospective Tenants All BMR units must be rented to BMR tenants approved by the City or its agent. The services 40 HC 02-26-2026 40 of 136 of this agency shall be funded out of the City’s BMR Affordable Housing Fund (AHF) and shall be monitored by the City. An apartment owner/property manager shall notify the City or its agent of any available BMR units and the City or its agent shall have fourteen (14) days to provide owner with an income eligible candidate(s). In reviewing each candidate, the apartment owner/property manager may apply the same tenant selection criteria, such as past performance in meeting financial obligations and credit references, as those applied to applicants for non-BMR units on the property, except for those standards relating to income eligibility (Section 5.1) and minimum income (Section 5.1.1) requirements. 6.3. Prospective Tenant’s Previewing of Unit The City or its agent will coordinate with the apartment owner/property manager so that a prospective tenant may view the unit. 6.4. Executed Lease Agreement The apartment owner/property manager will provide City or its agent with a copy of the executed lease agreement. 6.5. Annual Rent Adjustments Maximum BMR rents will be adjusted annually based on the most recently published HCD income limits for Santa Clara County per household size and also in accordance with the California Health and Safety Code Section 50053. The City or its agent will notify the property owner of the new rental rates. If the owner chooses to raise rents, the tenant must be given 60 days' notice before any rent increase. 6.6. Owner/Manager Certification Prior to the rental of the first BMR unit on a property, the apartment owner/property manager will sign a Certificate of Receipt of Administrative Procedures Manual (Exhibit 7) with a statement of intent to manage the BMR units according to these procedures. Subsequent apartment owners/property managers may be asked to sign a Certificate of Receipt of Administrative Procedures Manual. 6.7. Terms of Affordability Covenants The deed restrictions imposed on each BMR unit pursuant to the program shall remain in effect for a specified period from the date of recordation of the Regulatory Agreement. Future owners of the property will abide by all of the administrative procedures and by the conditions in the recorded Regulatory Agreement for the entire period from date of recordation. To the extent the terms of this Manual and the Regulatory Agreement are inconsistent, the most restrictive term will apply. 6.8. Terms of Lease BMR tenants will be subject to the same conditions of tenancy as other tenants occupying the subject property, except for terms relating to occupancy, income eligibility, annual 41 HC 02-26-2026 41 of 136 recertification, and limits on rents. Each BMR unit shall be leased under a form of tenant lease approved by the City. The tenant lease shall, among other matters: • Provide for termination of the lease for failure: (1) to provide any information required under the Regulatory Agreement or reasonably requested by the apartment owner/property manager to establish or recertify the tenant's qualification, or the qualification of the tenant's household, for occupancy of the BMR unit, or (2) to income qualify as a result of any material misrepresentation made by such tenant with respect to the income computation or certification; • Be for an initial term of not less than one (1) year. After the initial year of tenancy, the lease may be month to month by mutual agreement of the apartment owner/property manager and the tenant, however the rent may not be raised more often than once every twelve (12) months after such initial year. The apartment owner/property manager will provide each tenant with at least sixty (60) days' written notice of any increase in rent applicable to such tenant; • Prohibit subleasing of the BMR unit or any portion of the BMR unit, contain nondiscrimination provisions, and include the tenant's obligation to inform the property manager of any need for maintenance or repair; • Allow termination of the tenancy only for an increase in tenant's household income above qualifying income or for good cause, including violation of the terms and conditions of the tenant lease, violations of house rules, non-payment of rent, violations of applicable federal, state, or local law, or other good cause; • Include, at the apartment owner's option, the obligation for the tenant to provide a security deposit not exceeding two (2) months' rent; and • Otherwise conform to this Manual. 6.9. Occupancy Requirements The apartment owner/property manager shall notify the City or its agent if it suspects that there have been any changes to the occupancy of the BMR unit. If the tenant fails to receive approval from the City for any changes in occupancy, or subleases the property, or fails to provide the annual occupancy recertification, the tenant shall be in violation of its lease and will no longer qualify as a BMR tenant. 7.0 Appeal Process Any person may appeal a decision made under this Manual. The appellant must file a written appeal with either the Community Development Director (if the program is being administered by the City) or the Executive Director of any agency administering the BMR program within ten (10) days of the date of the decision. The Community Development Director or the Executive Director, as applicable, will hear the appeal and provide a written decision on the appeal within ten (10) days from receipt of the appeal. The appellant may further appeal the decision of the Community Development Director or the Executive Director, as applicable, by filing a written appeal with the Community Development Director within ten (10) days of the date of the decision. The appeal will be heard by a qualified Third-Party Hearing Officer within thirty (30) days from the date of 42 HC 02-26-2026 42 of 136 receipt of the written appeal. The Third-Party Hearing Officer’s decision on the appeal is final. The sale or rent of any BMR unit at issue in the appeal shall be postponed until a final decision is reached on the appeal, or until the applicable period for filing an appeal has lapsed. 8.0 Authority The City Manager or designee is authorized to sign all documents on behalf of the City that implement the BMR Program and the policies in this Manual, including without limitation Promissory Notes, Deeds of Trust, Resale Restrictions, Rental Restrictions, and requests for notice. 43 HC 02-26-2026 43 of 136 Exhibit 1 City of Cupertino & RISE Housing Below Market Rate (BMR) Program Waitlist Application Instructions The City of Cupertino and their Agent, Rise Housing, are pleased to offer you the opportunity to apply to rent a Below Market Rate (BMR) apartment or purchase a Below Market Rate (BMR) home in Cupertino. WAITLIST APPLICATION PROCESS: • Please read the instructions completely, determine your eligibility and complete the enclosed BMR Waitlist Application. Incomplete and late Waitlist Applications will not be processed. • Applicants who were on the waitlist in previous years must re-apply to be eligible for the 2018 waitlist. • Current City of Cupertino BMR tenants are not eligible for the 2025 BMR Rental Waitlist. • Current City of Cupertino BMR tenants are eligible for the 2025 BMR Ownership Waitlist. • Completed Waitlist Applications must be received by Friday, October 31, 2025 by 5:00pm. Applications may be mailed, faxed, emailed or completed online. Applications must be received by the deadline, postmarks will not be accepted. • Rise Housing will review your Waitlist Application and determine your priority ranking (4, 3, 2, 1, or 0) based on current Cupertino residency and current employment in the City of Cupertino. Please see page 2 for definitions of these terms. • A lottery will be held to determine the ranking order within each priority ranking (4, 3, 2, 1, or 0). • All candidates will be emailed or mailed results by the end of the year; if they have been denied or approved, and if approved, the applicant number on the waitlist. The first candidate on the waitlist will be notified to view the next available unit for which they are qualified (rental or purchase) and begin the application process. WAITLIST APPLICATION: Please note that all information provided on the Waitlist Application will be verified when you are shown an available unit. Any information found to be false or inaccurate will immediately void your participation in the program. Candidates must keep Hello Housing updated throughout the year of any changes in information supplied. Household Size: The total number of individuals who will be living in the unit (including children). Children must reside in the household at least 50% of the time to be considered part of the household. Income Limits to Qualify for BMR Program: See charts below. The amounts listed are gross (before taxes are taken out). BMR Purchase Program- 2024 Housing & Community Development (HCD) Maximum Income Limits* Household Size 1 2 3 4 5 6 Median Income $129,000 $147,450 $165,850 $184,300 $199,050 $213,800 Moderate Income $154,800 $176,900 $199,050 $211,150 $238,850 $256,550 *Income Limits will be Updated Each Year by HCD Assets for Purchase Program: Households with assets over $100,000 will not be eligible. Excluded from net assets are all non-accessible funds or any assets that generate a penalty when withdrawn, i.e., 401K, CALPERS, STRS, and other pension plans. 44 HC 02-26-2026 44 of 136 First-time Homebuyer: All of the applicants who will be on the property title must be a first-time homebuyer. Applicant(s) shall be considered a first-time homebuyer if they have not owned any residential real estate for at least three years. This definition applies to property owned in foreign countries as well as in the United States. An exception will be made for people who were homeowners prior to a divorce or legal separation. Available Cash for Down Payment, Closing Costs to Purchase: Households are required to have readily available assets for a minimum of 5% down of the purchase price. Pricing will vary based on income limits and bedroom counts but a minimum of $12,500 would be needed to qualify. BMR Rental Program- 2024 Housing & Community Development (HCD) Maximum Income Limits* Household Size 1 2 3 4 5 6 Very-Low Income $64,550 $73,750 $82,950 $92,150 $99,550 $106,900 Low Income $102,300 $116,900 $131,500 $146,100 $157,800 $169,500 *Income Limits will be Updated Each Year by HCD Assets for Rental Program: Household assets, including and not limited to, checking and savings accounts, CD’s, money market accounts and cash funds, may not exceed the maximum gross income allowed for the appropriate household size. Income Minimum: Individual properties may have minimum income limits to qualify which will be disclosed prior to viewing the home. Priority Points are based upon the following criteria: • One Point: At least one member of the household, on the property title or lease, must currently maintain a primary residence at an address located within Cupertino. • Two Points: At least one member of the household, on the property title or lease, must: o Work for wages or salary within the boundaries of Cupertino; or o Own or operate a business in the Cupertino; or o Perform contract or commission work where the actual work is conducted at a Cupertino location. • One Additional Point: At least one member of the household, on the property title or lease, must work for wages or salary for a public agency within the boundaries of Cupertino. (e.g.: Cupertino Unified School District (Cupertino schools only), City of Cupertino) PLEASE SUBMIT ONE WAITLIST APPLICATION PER HOUSEHOLD. DUPLICATE APPLICATIONS WILL RESULT IN AN AUTOMATIC DISQUALIFICATION. QUESTIONS? Contact Hello Housing at brook@hellohousing.org or (415) 742-8610 This Program is not designed to aid emergency or immediate housing needs. Deadline to Submit Waitlist Applications: Friday, October 31, 2025 at 5:00pm. Email: cupertino@risehousing.com Phone: (415) 301-5448 Mail to the RISE Housing office: Rise Housing – City of Cupertino 1990 N California Blvd, Walnut Creek, CA 94596 Applications must be received by deadline. Postmarks not accepted. Online: https://www.risehousing.com/ 45 HC 02-26-2026 45 of 136 Check only one box: Rent Purchase Both (Rent & Purchase APPLICANT First Name Email Last Name Employer Current Address Are you a current Cupertino BMR Rental tenant? YES/NO City State Were you on the 2017 BMR Waitlist? YES/NO Zip Phone Total # of Household Members: Total Annual Household Gross $ Income: (Before taxes are taken out) Estimated Value of Net Assets: $ (Checking, savings, stocks, bonds, and/or CD accounts) Have any members of the household been listed on a primary residential property title, at any time, in the past three (3) years? Exception made for divorced or legally separated homeowners. Please Circle One: YES or NO PRIORITY POINTS- circle all that apply Circle One: Cupertino? If yes, please specify address: YES or NO 2. 2 Points- Are any members of the household currently employed in the City of Cupertino? If yes, please specify employer, address, & position: YES or NO 3. 1 Point- Are any members of the household currently employed at a public agency in the City of Cupertino? If yes, please specify employer, address, & position: YES or NO By signing below, I certify that all the information on this form is true and complete to the best of my knowledge. When asked, I agree to give proof of this information and knowingly understand that supplying false, incomplete or inaccurate information is punishable under Federal or State criminal law. X Signature Signature Required. Date Deadline: October 31, 2025 5:00pm October 2025 2025 WAITLIST APPLICATION City of Cupertino – Rise Housing Below Market Rate (BMR) Program 46 HC 02-26-2026 46 of 136 Below Market Price (BMR) - Ownership Application Exhibit 2 This certification includes required information as well as optional information. Unless a section is labeled "Optional" it is a required section and must be completed. We encourage households to complete all sections. Answers to optional questions are confidential and will NOT impact your eligibility. In aggregate, the collective answers from the pool of households will help Hello Housing better understand who benefits from affordable housing programs and to advocate to policy makers for effective programs. Current Address Date City State Zip Code Head of Household & Co-Head of Household Below, please provide details for the Head of Household and Co-Head of Household. Head of Household Co-Head of Household (If Applicable) Please note that Head(s) of Household must be an adult (18 years or older). First Name First Name Last Name Last Name Phone Phone Alternate Phone Alternate Phone Email Email Date of Birth Date of Birth Primary Language Primary Language Additional Household Members Below, please provide information on any other members of your household, such as children, grandparents, or other adults in the household who are full or part time residents (if applicable). This information helps calculate your household size. Household Member Household Member First Name First Name Last Name Last Name Phone Phone Alternate Phone Alternate Phone Email Email Date of Birth Date of Birth Relationship to household Relationship to household Primary Language Primary Language Household Member Household Member First Name First Name Last Name Last Name Phone Phone Alternate Phone Alternate Phone Email Email Date of Birth Date of Birth Relationship to household Relationship to household Primary Language Primary Language Ownership Application - Page 1 47 HC 02-26-2026 47 of 136 Please provide accurate information. The purpose of this page is to determine if your household qualifies for Priority Points. Carefully read each description of priority living and employment circumstances; then check all that apply. You must provide the listed documentation as proof before receiving a unit to rent. □ I am a CURRENT CITYof CUPERTINO RESIDENT - 1 POINT • Households applying under the priority description RESIDENT shall provide proof of residency in Cupertino. □ • A current paystub with Cupertino address or letter of verification from your employer shall serve as sufficient proof. □ • A current paystub with Cupertino address or letter of verification from your employer shall serve as sufficient proof. Other Priorities □ I have been displaced from rental housing in Cupertino by public or private redevelopment - HIGHEST PRIORITY • A letter verifying your displacement. □I have a disability and request an accessible unit when ones becomes available Ownership Application - Page 2 48 HC 02-26-2026 48 of 136 Please provide accurate information. Income eligibility will be determined based on the gross combined household income and will be verified based on the supporting documentation requested at the end of this certification. Head of Household Co-Head of Household Annual Income (before taxes) Annual Income (before taxes) From Full-Time Employment $ From Full-Time Employment $ From Part-Time Employment $ From Part-Time Employment $ From Self-Employment $ From Self-Employment $ From Spousal Support $ From Spousal Support $ From Child Support $ From Child Support $ Investment Income $ Investment Income $ Social Security Income $ Social Security Income $ SSDI $ SSDI $ Income from Assets (e.g. rental income) $ Income from Assets (e.g. rental income) $ Other $ Other $ TOTAL $ TOTAL $ Household Member Household Member Annual Income (before taxes) Annual Income (before taxes) From Full-Time Employment $ From Full-Time Employment $ From Part-Time Employment $ From Part-Time Employment $ From Self-Employment $ From Self-Employment $ From Spousal Support $ From Spousal Support $ From Child Support $ From Child Support $ Investment Income $ Investment Income $ Social Security Income $ Social Security Income $ SSDI $ SSDI $ Income from Assets (e.g. rental income) $ Income from Assets (e.g. rental income) $ Other $ Other $ TOTAL $ TOTAL $ Household Member Household Member Annual Income (before taxes) Annual Income (before taxes) From Full-Time Employment $ From Full-Time Employment $ From Part-Time Employment $ From Part-Time Employment $ From Self-Employment $ From Self-Employment $ From Spousal Support $ From Spousal Support $ From Child Support $ From Child Support $ Investment Income $ Investment Income $ Social Security Income $ Social Security Income $ SSDI $ SSDI $ Income from Assets (e.g. rental income) $ Income from Assets (e.g. rental income) $ Other $ Other $ TOTAL $ TOTAL $ 49 HC 02-26-2026 49 of 136 Please list the current value of all assets of all members of the household aged 18 and older. If zero, please write "0" in the blank. Please include an account description and last 4 digits of the account number (for example, Bank of America #4567). Combined Household Assets Checking Accounts $ Savings Accounts $ Retirement Accounts $ Investments $ Real Estate $ CDs (Certificates of Deposit) $ Gift Money $ Other $ Value of Assets Description & Last 4 Digits of Account Number (if applicable) (continued) (continued) (continued) 50 HC 02-26-2026 50 of 136 Demographic information is a not a criteria in the certification process, but provides a clearer picture on who may benefit from affordable housing opportunities and can help advocates of affordable housing make the case to policymakers. Head of Household Co-Head of Household Race American Indian or Alaska Native Race American Indian or Alaska Native Asian Asian Black or African American Black or African American Native Hawaiian or Pacific Islander Native Hawaiian or Pacific Islander White White American Indian AND White American Indian AND White Asian AND White Asian AND White Black or African American AND White Black or African American AND White American Indian AND Black American Indian AND Black Other multiple races Other multiple races Ethnicity Hispanic Non-Hispanic Ethnicity Hispanic Non-Hispanic Female Headed Household Yes No Female Headed Household Yes No Marital Status Single Married/Domestic Partnership Marital Status Single Married/Domestic Partnership Separated Separated Divorced Divorced Widowed Widowed Education Less than high-school diploma Education Less than high-school diploma High-school diploma or equivalent High-school diploma or equivalent Some post-secondary education Some post-secondary education Certification from training program Certification from training program Associate's degree Associate's degree Bachelor's degree Bachelor's degree Master's or other graduate degree Master's or other graduate degree Employment Status Self-Employed Employment Status Self-Employed Work Full-Time for Employer Work Full-Time for Employer Work Part-Time for Employer Work Part-Time for Employer Homemaker Homemaker Full-Time Student Full-Time Student Permanently unable to work Permanently unable to work Unemployed and seeking work Unemployed and seeking work Unemployed and not seeking work Unemployed and not seeking work Retired Retired Veteran Yes No Veteran Yes No 51 HC 02-26-2026 51 of 136 Please provide supporting documentation for EVERY ADULT MEMBER OF THE HOUSEHOLD AGED 18 AND OVER. All documents must be legible to be considered. To help keep you organized, we recommend you print a copy of his checklist for each adult household member to use as a Table of Contents. A. Proof of Identify: One form of legal identification for every adult Required Check below for which form of ID provided. CA Drivers License CA Identification Card US Passport B. Social Security Card Social Security Card Required Please contact Social Security at (800) 772-1213 if you cannot locate. C. Documentation of Employment Income Required Please contact your Human Resources department if you cannot locate. If employed, provide your most recent consecutive paystubs for the past two (2) months. 2. Dates covered by paycheck: to 3. Dates covered by paycheck: to 4. Dates covered by paycheck: to OR If self-employed: A year-to-date Profit & Loss statement Not Applicable D. Two (2) months of documentation for any other income Required if applicable Child Support Social Security SSI OR Zero Income Affidavit Pension Alimony Long Term Disability Foster Care Gift letter (if applicable) Other (please describe) E. Three (3) most recent Federal Tax Returns OR Verification of Non-Filing Required Please contact the IRS at (800) 829-1040 if you cannot locate your returns. If you did NOT file taxes, contact the IRS at (800) 829-1040 and request a “Verification of Non-Filing.” Three (3) Most Recent 1040 Federal Tax Returns (include ALL pages) or Verification of Non-Filing (if applicable) F. Three (3) most recent W-2’s Required if issued W-2s Please contact your Human Resources department if you cannot locate. You may also call the IRS at (800) 829-1040. Most recent W-2s or 1099s Should cover all reported income in same year's tax return Not Applicable G. Last two (2) consecutive statements from ALL Financial Accounts* Required Computer printouts are acceptable ONLY if they contain a complete account number, begin & end balances, and begin & end dates. Please include statements for ALL OPEN accounts, even if they contain a $0 balance. Check Not Applicable if you do not have such accounts. Most recent two (2) consecutive Bank Statements Most recent two (2) consecutive statements for Retirement Accounts (401k, IRA, etc.) Most recent two (2) consecutive statements for Stocks, Mutual Funds, Profit Sharing accounts Most recent two (2) statements for CDs, Money Market accounts, etc. Not Applicable H. Proof of Student Status Required if applicable Copy of Current Registration OR an Unofficial Transcript Not Applicable I. PreQualification PreQualification Letter from Lender Ownership Application - Page 6 Supporting Documentation 52 HC 02-26-2026 52 of 136 Please have each adult, aged 18 and over, in the household print their name, sign, and date this page. I certify that the foregoing application accurately reflects all income received from all sources for all members of the household. I certify under penalty of perjury under the laws of the United States of America that the foregoing is true and correct to the best of my knowledge. I further understand that providing false representations herein constitutes an act of fraud and that false, misleading, or incomplete information may result in the termination of real estate documents related to this application (28 U.S. Code 1746). Signature Date Signature Date Name Name Signature Signature Date Date Name Name Signature Signature Rise Housing and the City of Cupertino do not discriminate against any persons on the grounds of race, color, religion, national origin, ancestry, sex, gender, gender identity, gender expression, sexual orientation, marital status, familial status, source of income, Ownership Application - Page 7 53 HC 02-26-2026 53 of 136 This certification includes required information as well as optional information. Unless a section is labeled "Optional" it is a required section and must be completed. We encourage households to complete all sections. Answers to optional questions are confidential and will NOT impact your eligibility. In aggregate, the collective answers from the pool of households will help Hello Housing better understand who benefits from affordable housing programs and to advocate to policy makers for effective programs. Current Address Date City State Zip Code Head of Household & Co-Head of Household Below, please provide details for the Head of Household and Co-Head of Household. Head of Household Co-Head of Household (If Applicable) Please note that Head(s) of Household must be an adult (18 years or older). First Name First Name Last Name Last Name Phone Phone Alternate Phone Alternate Phone Email Email Date of Birth Date of Birth Primary Language Primary Language Additional Household Members Below, please provide information on any other members of your household, such as children, grandparents, or other adults in the household who are full or part time residents (if applicable). This information helps calculate your household size. Household Member Household Member First Name First Name Last Name Last Name Phone Phone Alternate Phone Alternate Phone Email Email Date of Birth Date of Birth Relationship to household Relationship to household Primary Language Primary Language Household Member Household Member First Name First Name Last Name Last Name Phone Phone Alternate Phone Alternate Phone Email Email Date of Birth Date of Birth Relationship to household Relationship to household Primary Language Primary Language Rental Application - Page 1 54 HC 02-26-2026 54 of 136 BMR Priority Point Questionaire Please provide accurate information. The purpose of this page is to determine if your household qualifies for Priority Points. Carefully read each description of priority living and employment circumstances; then check all that apply. You must provide the listed documentation as proof before receiving a unit to rent. □ I am a CURRENT CITYof CUPERTINO RESIDENT - 1 POINT • Households applying under the priority description RESIDENT shall provide proof of residency in Cupertino. □ • A current paystub with Cupertino address or letter of verification from your employer shall serve as sufficient proof. □ • A current paystub with Cupertino address or letter of verification from your employer shall serve as sufficient proof. Other Priorities □ I have been displaced from rental housing in Cupertino by public or private redevelopment - HIGHEST □ 55 HC 02-26-2026 55 of 136 Please provide accurate information. Income eligibility will be determined based on the gross combined household income and will be verified based on the supporting documentation requested at the end of this certification. Head of Household Co-Head of Household Annual Income (before taxes) Annual Income (before taxes) From Full-Time Employment $ From Full-Time Employment $ From Self-Employment $ From Self-Employment $ From Child Support Investment Income $ Investment Income $ SSDI $ SSDI $ (e.g. rental income) (e.g. rental income) Other $ Other $ TOTAL $ TOTAL $ Household Member Household Member Annual Income (before taxes) Annual Income (before taxes) From Part-Time Employment $ From Part-Time Employment $ From Child Support $ From Child Support $ Social Security Income $ Social Security Income $ (e.g. rental income) (e.g. rental income) Other $ Other $ TOTAL $ TOTAL $ Household Member Household Member Annual Income (before taxes) From Full-Time Employment $ Annual Income (before taxes) From Full-Time Employment $ From Part-Time Employment $ From Part-Time Employment $ From Spousal Support $ From Spousal Support $ Investment Income Social Security Income $ Social Security Income $ Income from Assets (e.g. rental income) $ Income from Assets (e.g. rental income) $ TOTAL $ TOTAL $ Economic Profile 56 HC 02-26-2026 56 of 136 Please list the current value of all assets of all members of the household aged 18 and older. If zero, please write "0" in the blank. Please include an account description and last 4 digits of the account number (for example, Bank of America #4567). Combined Household Assets Checking Accounts $ Savings Accounts $ Retirement Accounts $ Investments $ Real Estate $ CDs (Certificates of Deposit) $ Gift Money $ Other $ Value of Assets Description & Last 4 Digits of Account Number (if applicable) (continued) (continued) (continued) 57 HC 02-26-2026 57 of 136 Demographic information is a not a criteria in the certification process, but provides a clearer picture on who may benefit from affordable housing opportunities and can help advocates of affordable housing make the case to policymakers. Head of Household Co-Head of Household Race American Indian or Alaska Native Race American Indian or Alaska Native Asian Asian Black or African American Black or African American Native Hawaiian or Pacific Islander Native Hawaiian or Pacific Islander White White American Indian AND White American Indian AND White Asian AND White Asian AND White Black or African American AND White Black or African American AND White American Indian AND Black American Indian AND Black Other multiple races Other multiple races Ethnicity Hispanic Non-Hispanic Ethnicity Hispanic Non-Hispanic Female Headed Household Yes No Female Headed Household Yes No Marital Status Single Married/Domestic Partnership Marital Status Single Married/Domestic Partnership Separated Separated Divorced Divorced Widowed Widowed Education Less than high-school diploma Education Less than high-school diploma High-school diploma or equivalent High-school diploma or equivalent Some post-secondary education Some post-secondary education Certification from training program Certification from training program Associate's degree Associate's degree Bachelor's degree Bachelor's degree Master's or other graduate degree Master's or other graduate degree Employment Status Self-Employed Employment Status Self-Employed Work Full-Time for Employer Work Full-Time for Employer Work Part-Time for Employer Work Part-Time for Employer Homemaker Homemaker Full-Time Student Full-Time Student Permanently unable to work Permanently unable to work Unemployed and seeking work Unemployed and seeking work Unemployed and not seeking work Unemployed and not seeking work Retired Retired Veteran Yes No Veteran Yes No 58 HC 02-26-2026 58 of 136 Please provide supporting documentation for EVERY ADULT MEMBER OF THE HOUSEHOLD AGED 18 AND OVER. All documents must be legible to be considered. To help keep you organized, we recommend you print a copy of his checklist for each adult household member to use as a Table of Contents. A. Proof of Identify: One form of legal identification for every adult Required Check below for which form of ID provided. CA Drivers License CA Identification Card US Passport B. Social Security Card Social Security Card Required Please contact Social Security at (800) 772-1213 if you cannot locate. C. Documentation of Employment Income Required Please contact your Human Resources department if you cannot locate. If employed, provide your most recent consecutive paystubs for the past two (2) months. Dates covered by paycheck: to 2. Dates covered by paycheck: to 3. Dates covered by paycheck: to 4. Dates covered by paycheck: to OR If self-employed: A year-to-date Profit & Loss statement Not Applicable D. Two (2) months of documentation for any other income Required if applicable Child Support Pension Foster Care Social Security Alimony Gift letter (if applicable) SSI Long Term Disability Other (please describe) E. Most recent of Federal Tax Returns OR Verification of Non-Filing Required Please contact the IRS at (800) 829-1040 if you cannot locate your returns. If you did NOT file taxes, contact the IRS at (800) 829-1040 and request a “Verification of Non-Filing.” Most Recent 1040 Federal Tax Return (include ALL pages) or Verification of Non-Filing (if applicable) F. Most recent W-2’s Required if issued W-2s Please contact your Human Resources department if you cannot locate. You may also call the IRS at (800) 829-1040. Most recent W-2s or 1099s Should cover all reported income in same year's tax return Not Applicable G. Last two (2) consecutive statements from ALL Financial Accounts* Required Computer printouts are acceptable ONLY if they contain a complete account number, begin & end balances, and begin & end dates. Please include statements for ALL OPEN accounts, even if they contain a $0 balance. Check Not Applicable if you do not have such accounts. Most recent two (2) consecutive Bank Statements Most recent two (2) consecutive statements for Retirement Accounts (401k, IRA, etc.) Most recent two (2) consecutive statements for Stocks, Mutual Funds, Profit Sharing accounts Most recent two (2) statements for CDs, Money Market accounts, etc. Not Applicable H. Proof of Student Status Required if applicable Copy of Current Registration OR an Unofficial Transcript Not Applicable 59 HC 02-26-2026 59 of 136 Please have each adult, aged 18 and over, in the household print their name, sign, and date this page. I certify that the foregoing application accurately reflects all income received from all sources for all members of the household. I certify under penalty of perjury under the laws of the United States of America that the foregoing is true and correct to the best of my knowledge. I further understand that providing false representations herein constitutes an act of fraud and that false, misleading, or incomplete information may result in the termination of real estate documents related to this application (28 U.S. Code 1746). Signature Signature Date Date Name Name Signature Signature Date Date Name Name Signature Signature Rise Housing and the City of Cupertino do not discriminate against any persons on the grounds of race, color, religion, national origin, ancestry, sex, gender, gender identity, gender expression, sexual orientation, marital status, familial status, source of income, genetic information, medical condition, physical disability or mental disability, or any other category protected by law. 60 HC 02-26-2026 60 of 136 Exhibit 4 24 CFR 5.609 § 5.609 Annual income. (a) Annual income means all amounts, monetary or not, which: (1) Go to, or on behalf of, the family head or spouse (even if temporarily absent) or to any other family member; or (2) Are anticipated to be received from a source outside the family during the 12-month period following admission or annual reexamination effective date; and (3) Which are not specifically excluded in paragraph (c) of this section. (4) Annual income also means amounts derived (during the 12-month period) from assets to which any member of the family has access. (b) Annual income includes, but is not limited to: (1) The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services; (2) The net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family; (3) Interest, dividends, and other net income of any kind from real or personal property. Expenditures for amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation is permitted only as authorized in paragraph (b)(2) of this section. Any withdrawal of cash or assets from an investment will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested by the family. Where the family has net family assets in excess of $ 5,000, annual income shall include the greater of the actual income derived from all net family assets or a percentage of the value of such assets based on the current passbook savings rate, as determined by HUD; (4) The full amount of periodic amounts received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts, including a lump-sum amount or prospective monthly amounts for the delayed start of a periodic amount (except as provided in paragraph (c)(14) of this section); (5) Payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation and severance pay (except as provided in paragraph (c)(3) of this section); 61 HC 02-26-2026 61 of 136 (6) Welfare assistance payments. (i) Welfare assistance payments made under the Temporary Assistance for Needy Families (TANF) program are included in annual income only to the extent such payments: (A) Qualify as assistance under the TANF program definition at 45 CFR 260.31; and (B) Are not otherwise excluded under paragraph (c) of this section. (ii) If the welfare assistance payment includes an amount specifically designated for shelter and utilities that is subject to adjustment by the welfare assistance agency in accordance with the actual cost of shelter and utilities, the amount of welfare assistance income to be included as income shall consist of: (A) The amount of the allowance or grant exclusive of the amount specifically designated for shelter or utilities; plus (B) The maximum amount that the welfare assistance agency could in fact allow the family for shelter and utilities. If the family's welfare assistance is ratably reduced from the standard of need by applying a percentage, the amount calculated under this paragraph shall be the amount resulting from one application of the percentage. (7) Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from organizations or from persons not residing in the dwelling; (8) All regular pay, special pay and allowances of a member of the Armed Forces (except as provided in paragraph (c)(7) of this section). (9) For section 8 programs only and as provided in 24 CFR 5.612, any financial assistance, in excess of amounts received for tuition and any other required fees and charges, that an individual receives under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq. ), from private sources, or from an institution of higher education (as defined under the Higher Education Act of 1965 (20 U.S.C. 1002)), shall be considered income to that individual, except that financial assistance described in this paragraph is not considered annual income for persons over the age of 23 with dependent children. For purposes of this paragraph, "financial assistance" does not include loan proceeds for the purpose of determining income. (c) Annual income does not include the following: (1) Income from employment of children (including foster children) under the age of 18 years; (2) Payments received for the care of foster children or foster adults (usually persons with disabilities, unrelated to the tenant family, who are unable to live alone); (3) Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation), 62 HC 02-26-2026 62 of 136 capital gains and settlement for personal or property losses (except as provided in paragraph (b)(5) of this section); (4) Amounts received by the family that are specifically for, or in reimbursement of, the cost of medical expenses for any family member; (5) Income of a live-in aide, as defined in § 5.403; (6) Subject to paragraph (b)(9) of this section, the full amount of student financial assistance paid directly to the student or to the educational institution; (7) The special pay to a family member serving in the Armed Forces who is exposed to hostile fire; (8) (i) Amounts received under training programs funded by HUD; (ii) Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan to Attain Self-Sufficiency (PASS); (iii) Amounts received by a participant in other publicly assisted programs which are specifically for or in reimbursement of out-of-pocket expenses incurred (special equipment, clothing, transportation, child care, etc.) and which are made solely to allow participation in a specific program; (iv) Amounts received under a resident service stipend. A resident service stipend is a modest amount (not to exceed $ 200 per month) received by a resident for performing a service for the PHA or owner, on a part-time basis, that enhances the quality of life in the development. Such services may include, but are not limited to, fire patrol, hall monitoring, lawn maintenance, resident initiatives coordination, and serving as a member of the PHA's governing board. No resident may receive more than one such stipend during the same period of time; (v) Incremental earnings and benefits resulting to any family member from participation in qualifying State or local employment training programs (including training programs not affiliated with a local government) and training of a family member as resident management staff. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives, and are excluded only for the period during which the family member participates in the employment training program; (9) Temporary, nonrecurring or sporadic income (including gifts); (10) Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era; (11) Earnings in excess of $ 480 for each full-time student 18 years old or older (excluding the head of household and spouse); 63 HC 02-26-2026 63 of 136 (12) Adoption assistance payments in excess of $ 480 per adopted child; (13)[Reserved] (14) Deferred periodic amounts from supplemental security income and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department of Veterans Affairs disability benefits that are received in a lump sum amount or in prospective monthly amounts. (15) Amounts received by the family in the form of refunds or rebates under State or local law for property taxes paid on the dwelling unit; (16) Amounts paid by a State agency to a family with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep the developmentally disabled family member at home; or (17) Amounts specifically excluded by any other Federal statute from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions set forth in 24 CFR 5.609(c) apply. A notice will be published in the Federal Register and distributed to PHAs and housing owners identifying the benefits that qualify for this exclusion. Updates will be published and distributed when necessary. (d) Annualization of income. If it is not feasible to anticipate a level of income over a 12- month period ( e.g., seasonal or cyclic income), or the PHA believes that past income is the best available indicator of expected future income, the PHA may annualize the income anticipated for a shorter period, subject to a redetermination at the end of the shorter period. Excerpts from Technical Guide for Determining Income and Allowances for the HOME Program Anticipating Income The HOME regulations at 24 CFR 92.203(d)(1) require that, for the purpose of determining eligibility for HOME assistance, a PJ must project a household’s income in the future. To do so, a “snapshot” of the household’s current circumstances is used to project future income. In general, a PJ should assume that today’s circumstances will continue for the next 12 months, unless there is verifiable evidence to the contrary. For example, if a head of household is currently working for $7.00 per hour, 40 hours per week, the PJ should assume that this family member will continue to do so for the next year. Thus, estimated earnings will be $7.00 per hour multiplied by 2,080 hours, or $14,560 per year. This method should be used even when it is not clear that the type of income received currently will continue in the coming year. For example, assume a family member has been receiving unemployment benefits of $100 per month for 16 weeks at the time of income certification. It is unlikely that the family member will continue on unemployment for another 52 weeks. However, because it is not known whether or when the family member will find employment, the PJ should 64 HC 02-26-2026 64 of 136 use the current circumstances to anticipate annual (gross) income. Income would therefore be calculated as follows: $100 per week x 52 weeks, or $5,200. The exception to this rule is when documentation is provided that current circumstances are about to change. For example, an employer might report that an employee currently makes $7.50 an hour, but a negotiated union contract will increase this amount to $8.25 an hour eight weeks from the date of assistance. In such cases, income can be calculated based on the information provided. In this example, the calculation would be as follows: • $7.50/hour x 40 hours/week x 8 weeks = $2,400 • $8.25/hour x 40 hours/week x 44 weeks = $14,520 • $2,400 + $14,520 = $16,920. Sources of Earned Income In addition to hourly earnings, PJs must account for all earned income. In addition to the base salary, this will include annual cost of living adjustments (COLAs), bonuses, raises, and overtime pay. In the case of overtime, it is important to clarify whether overtime is sporadic or a predictable component of an employee’s income. If it is determined that an applicant has earned and will continue to earn overtime pay on a regular basis, PJs should calculate the average amount of overtime pay earned by the applicant over the pay period the PJ is using to calculate income eligibility (3 months or 12 months). This average amount is then to be added to the total amount of projected earned income over the following 12-month period. Exhibit 2.1 provides a step-by- step explanation of the standard methodology for projecting annual income. Exhibit 2.1 – Step-by-Step Methodology for Projecting Annual Income : Collect appropriate income documentation. verification, bank statements (checking and/or savings), or certified copies of tax returns. (These can be acquired by submitting an IRS Form 4506, “Request for Copy of Tax Form.”) Step 2 applicant household’s projected income based upon documentation. figures, bonuses, anticipated raises, COLAs, or other anticipated changes in income. Other specific inclusions must also be reflected in the calculation, depending upon which definition of annual income the PJ has elected to use for its program. Specific instructions for each of the three definitions of income under HOME are provided later in this guide. Step 3 of projected income against current HOME income limits. selected definition, it must compare the household’s final projected figure to annual HOME income limits, which are adjusted according to household size. These limits are posted online at: www.hud.gov/offices/cpd/affordablehousing/programs/home/lim its/inco me/index/cfm. This information is also available through the CPD office of your state or local HUD Field Office. Households whose projected annual income is less than the current HOME income limits are eligible for HOME assistance. 65 HC 02-26-2026 65 of 136 EXHIBIT 5 CITY OF CUPERTINO INCLUSIONARY HOUSING PROGRAM BUYER'S DISCLOSURE STATEMENT The City of Cupertino (the "City") has adopted an Inclusionary Housing Ordinance that makes it possible for median and moderate income households to buy a house at a price that is affordable. The price that you are paying for your house is below the market rate, as required by the Inclusionary Housing Ordinance. In exchange for giving you the opportunity to buy your house at a below-market affordable price, the City will require you to sign a Promissory Note, Deed of Trust, and an Occupancy, Refinancing, and Resale Agreement with Option to Purchase (the "Resale Agreement"). The Deed of Trust and Resale Agreement will be recorded against your property. These documents are enforceable by the City. In general, the Promissory Note, Deed of Trust and the Resale Agreement set forth conditions that you must meet, including but not limited to the following: • The Resale Agreement requires you to live in your home as your principal place of residence and prohibits you from renting out your home. • The Resale Agreement places controls on the sale of your home. There is a limit to the price at which you can sell the home. If you sell the home above the restricted price, you must pay the City the difference between the restricted price and the sales price. In addition, you must follow certain steps and procedures when you decide to sell your • home. • The City has an option to purchase your home at a restricted price when you put the home up for sale or if you violate any agreements. The purpose of the Promissory Note, Resale Agreement, and Deed of Trust is to make sure that the City's goal of providing affordable homeownership opportunities to moderate income buyers continues to be met by keeping your house affordable to other moderate income households should you choose to sell or move. The City has helped you to buy a home; it wants to help others as well. This Disclosure Statement explains the major provisions of the Promissory Note, Deed of Trust, and Resale Agreement so that you will understand their requirements. You should, of course, read the entire Promissory Note, the Resale Agreement, and the Deed of Trust and become familiar with them if you are considered for the purchase of a particular BMR home.1 1 Numerical examples are included in this Disclosure Statement to help you better understand the provisions of the Buyer's Resale Agreement and Promissory Note. Please be aware that these are simply to show how things work and that they are not intended to represent your specific situation. If you follow along with a calculator, you may not get exactly the same answers. Any differences are probably due to how your calculator "rounds-off" numbers. 66 HC 02-26-2026 66 of 136 REQUIREMENTS WHILE LIVING IN A BMR UNIT A. REQUIREMENTS IN EFFECT FOR 99-YEAR TERM The requirements that are in the Resale Agreement apply until the earlier of (i) ninety- nine (99) years from the date of the recordation of the Resale Agreement, or (ii) the date you sell or transfer your home in accordance with the Resale Agreement and the Deed of Trust. If you own and live in your home for the whole 99-year term, all of the requirements of the Resale Agreement go away. B. PRIMARY RESIDENCE AND ANNUAL CERTIFICATION Your house must be your main place of residence. This means you must live in your home for at least 10 months out of each calendar year. At least once per year, City or its agent will verify that owners continue to occupy the BMR units. The verification process will include the following steps: • The City or its agent will mail to all BMR units a Certification of Owner Occupancy. • You must complete the form and return it to the City within 30 days, including proof of occupancy such as a copy of the most recent mortgage statement, property tax bill, or utility bill. • The City or its agent will annually order property title lot books to verify homeownership and liens on the property. Failure to Submit Annual Certification If the City determines that you have willfully made false statements or misrepresented any facts on the annual certification, or if you fail to submit the Certification of Owner Occupancy, the City will treat this as a breach of the Resale Agreement and the Deed of Trust and will take all legal remedies available, including forced sale of the unit. C. LEASE OR RENT OF HOME You are not allowed to lease or rent the house to anyone, except that in the event of substantial hardship, you may rent-out the house for no more than 12 months, with prior written City approval. If the City permits you to rent out your home for up to 12 months, you may only rent the home to a lower income household, and the rent you may charge is restricted by the City to an affordable rent, as defined by state law (approximately 30% of the tenant's household income, less an allowance for utilities). If you violate these requirements, the City may sue to enforce them, and you will owe the City any Excess Rental Proceeds you have collected (i.e., the rent in excess of the restricted amount you are permitted to charge). You will also be in default under the Resale Agreement, and the City may require you to sell the home to the City in the manner described in the Resale Agreement. D. MAINTAINING YOUR HOME/ PROPERTY INSURANCE By signing the Resale Agreement and Deed of Trust, you agree to keep your home and landscaping in good repair and in neat, clean, and orderly condition and to prevent deterioration 67 HC 02-26-2026 67 of 136 of the home. You agree not use or dispose of any hazardous substances on the property, except those commonly used on residential properties. You also agree to keep a standard homeowner's insurance policy, with the City named as an additional insured. The insurance policy shall be in an amount equal to the replacement value of the home. Every five (5) years, the replacement value will be reviewed and adjusted as needed, if requested by the City. If you hire a contractor to work on your home, the contractor must be licensed and carry liability and workers compensation insurance. E. CAPITAL IMPROVEMENTS If you make improvements to your home, and you want the value of the capital improvements to be taken into account when the Maximum Restricted Resale Price (or option price) is calculated, you must obtain written approval of the improvements by the City before the improvements are made. The initial cost of such improvements must be at least $2,000 or more, and the improvements must conform with existing building codes and with Federal Housing Quality Standards. A copy of the receipts and invoices must be submitted to the City or its agent for proof of the capital improvements made to your home. F. REFINANCE AND JUNIOR MORTGAGES The Resale Agreement allows you to refinance your first mortgage loan or place a second mortgage or equity line of credit on your home, but places restrictions on the amount received by you from the refinancing. Following refinancing of your first mortgage or the addition of a junior mortgage, the principal amount of all debt secured by your house must not be greater than the larger of: (i) 90 percent of the Maximum Restricted Resale Price; or (ii) the original amount of all the loans you took out to finance the purchase of your home. If you are considering a refinance of your first mortgage or obtaining a junior mortgage, you should contact the City for a calculation of the Maximum Restricted Resale Price amount before you contact your financial institution. The City will not approve any mortgage that allows payment of interest only, negative amortization, adjustable rate, or reverse mortgage. REQUIREMENTS FOR SELLING OR TRANSFERRING OWNERSHIP OF A BMR UNIT A. CITY HAS OPTION TO PURCHASE In exchange for the opportunity given to you to buy your home at an affordable, below- market price, the City has an option to buy your home at a restricted price if you sell your home or transfer ownership during the term of the Resale Agreement or if you violate any of the terms of the Resale Agreement. In other words, the City has the first opportunity to buy your house before anyone else. The City may also give its option to purchase your house to a public agency, a nonprofit organization, or a person or family meeting income and other requirements. 68 HC 02-26-2026 68 of 136 B. PERMISSIBLE TRANSFERS OF OWNERSHIP – NOT A SALE Certain transfers of ownership are allowed although these transfers will require the new owner or owners to sign new BMR documents. The following transfers are permitted under the BMR program. The City must be informed of these transfers, but the City does not have the right to purchase your home if you transfer ownership to: • An existing spouse or domestic partner; • A spouse or domestic partner where the spouse or domestic partner becomes the co-owner of the home; • One spouse as part of a marriage dissolution proceeding; • An existing spouse or domestic partner of owner by devise or inheritance following the death of owner; or • An inter vivos (living) trust in which the owner is the beneficiary and trustee, provided a new resale restriction is executed in the name of the living trust and the BMR owner provides the City with a copy of the trust document or certification of trust to verify the trustee information. Inheritance In the event that someone inherits your home, the administrator of your estate or the person inheriting your home must contact the City within 30 days of your death. If the person inheriting your home qualifies as an eligible purchaser, he or she may keep your home, but he or she will have to execute new homebuyer documents with the City. If the person inheriting your home does not qualify as an eligible purchaser, he or she will have to sell the home in accordance with the Resale Agreement, but may live in the home for up to 12 months, leave the home vacant for up to 12 months, or rent the home to a low income tenant at a restricted rent for up to a year. If the person inheriting your home does not qualify as an eligible purchaser, and does not comply with the terms of the Resale Agreement, he or she will be in default under the Resale Agreement, and the City may exercise its option to purchase the home at the Maximum Restricted Resale Price. These provisions do not apply to a spouse or domestic partner of the owner. C. PROCESS FOR SELLING A BMR UNIT The first action that you must take if you want to sell your home is to contact the City or its agent and submit an Owner’s Notice of Intent to Transfer. You should do this before you contact a real estate broker and before you put the home on the market. The notice must include a pest report from a licensed pest inspector, other required information, and a description of any capital improvements that you have made and for which you received City approval. The Owner’s Notice of Intent to Transfer must be sent by certified mail with a return receipt requested or by express delivery service with a delivery receipt. Notices are considered effective as of the date received or the date delivery was refused. City’s Response The City will contact you within seven days of receiving the Intent to Transfer to arrange for a time to inspect your property to assess its condition. Within 30 days of the City’s receipt of the Intent to Transfer, the pest control report, other required information, and the capital 69 HC 02-26-2026 69 of 136 improvement request, and the City’s on-site inspection, the City will send you a City Response Notice. The Notice will explain whether the City intends to exercise its right to purchase or transfer its right to an income-eligible buyer. The City Response Notice will also provide the restricted sales price amount. City Exercises Right to Purchase If the City elects to exercise its right to purchase the property or transfer its right to an income eligible buyer, escrow will close within 90 days of the date that the City Response Notice is sent to you. The City or its agent will select the new buyer from the City's waitlist. When your home is bought by the City or a City-selected buyer under the City's option to purchase, you will pay to the City a transaction fee equal to six percent of the sales price. This fee takes the place of the fee for a broker's services. The City will be performing those services when it purchases your home. You should not contact a broker to sell your home until the City has informed you whether or not it will not exercise its option to purchase your home. If you contact a broker and the City exercises its option, you will owe the City a six percent transaction fee and you will be solely responsible for any additional broker fee. City Elects to Not Exercise Right to Purchase If the City chooses to not exercise its right to purchase the property or assign its right to an income eligible buyer, you may sell the home to an income eligible household for no more than the restricted sales price provided by the City. An eligible purchaser is a household (1) who will live in the home; (2) whose income is equal to or less than the income level designated in the City Response Notice; and (3) who will agree to sign resale restriction documents required by the City and to otherwise cooperate with the City. Once you find a potential eligible purchaser, you must refer the proposed buyer to the City so that the City can determine if in fact the buyer is an eligible purchaser. The seller and the proposed buyer must give specific information and documents to the City as described in the Resale Agreement. When the sale of the home to the eligible purchaser is completed, you must submit to the City the information and documents listed in Resale Agreement. Non-Permissible Transfers You may not transfer title to the BMR unit ( e x c e p t f o r t h e t r a n s f e r s listed in Section B a b o v e ) without submitting the Owner’s Notice of Intent to Transfer and receiving the City’s approval. Title to the BMR unit may not be transferred to your friends or relatives whose income or assets exceeds the established limits, or who will not occupy the BMR unit on a permanent basis after the transfer, or who are otherwise not eligible to purchase a BMR unit. D. SALES PRICE OF BMR UNIT IS RESTRICTED: MAXIMUM RESTRICTED RESALE PRICE 70 HC 02-26-2026 70 of 136 The City wants to make sure that the price of the BMR unit remains affordable to future median and moderate-income buyers. Therefore, the Resale Agreement limits the sales price of your home. The Maximum Restricted Resale Price that you can receive is the lower of the Indexed Price described in Section D.1 below and the Fair Market Value as described in Section D.2. 1. INDEXED PRICE (a) Owner's Base Price (price at which you bought it) (b) increased by the percentage increase of the Area Median Income for Santa Clara County for a household size of 4 persons from the date of your original purchase (the recording date of the grant deed for the property) to the date of receipt by the City of the Owner's Notice of Intent to Transfer plus (c) appraised value (not cost) of any eligible capital improvements and any special assessments imposed by the homeowners association and paid by you. Eligible capital improvements, among other requirements, must be approved in writing by the City before they are installed, as described previously minus (d) Cost of repairs to correct any violations of building or other codes, to put the house in a "sellable condition," such as cleaning, painting, appliance and other repairs, and other deferred maintenance repairs. Example 1 shows how the Indexed Price formula works. EXAMPLE 1 You sell your house at the end of eight years. The original price of your three- bedroom home was $341,000. The median income for a family of four in Santa Clara County when you bought your home was $105,500. Median income increases by 16% over the eight years. Five years after buying your home, you remodel your kitchen (with prior City written approval) and the remodeling work is valued by an appraiser as worth $3,000 at the time you sell. There is no deferred maintenance. (c) Appraised Value (not cost) of Eligible Capital Improvements + 3,000 INDEXED PRICE $398,560 Under the Resale Agreement, the fair market value can be determined in one of two ways. First, it can be established by a real estate appraiser approved in advance by the City. If 71 HC 02-26-2026 71 of 136 possible, the appraisal will be based on sales prices of homes similar to yours that are sold in your market area during the preceding three-month period. The appraisal will not take into account the fact that the resale price of your home is restricted by the Resale Agreement. The value of any (i) eligible capital improvements that you have made to your home, or (ii) damage or deferred maintenance that decrease its value shall be included in the appraisal. The cost of the appraisal used to determine fair market value will be paid by you, unless a new buyer has obtained an appraisal that you may utilize. The Resale Agreement also allows you and the City to set the fair market value of your home by mutual agreement instead of relying on an appraiser. Both you and the City would have to agree to this particular method (instead of hiring an appraiser) and to the final fair market value amount. If you and the City fail to agree on the Fair Market Value, either one can require use of the appraisal method. Example 2 shows how the Indexed Price and the Fair Market Value of the home are compared to determine the Maximum Restricted Resale Price at which you can offer your house for sale. EXAMPLE 2 The assumptions are the same as in Example 1. You sell your house at the end of eight years. The original sales price of your home was $341,000. The median income for a family of four in Santa Clara County when you bought the home was $105,500. Median income increases by 16% over the eight years. Five years after buying your home, you remodel your kitchen. The Fair Market Value of your home is determined by appraisal, the cost of which is paid by you. The appraisal determines the Fair Market Value at $450,000. This amount includes the value of the kitchen improvements, at $3,000. PRICE INDEXED is less FAIR MARKET MAXIMUM RESTRICTED PRICE than VALUE then RESALE $398,560 < $450,000 ⇒ $398,560 Since the Fair Market Value of the home is greater than the Indexed Price of the house, the Maximum Restricted Resale Price which you can receive from the sale of your home is $398,560. E. TRANSFER IN VIOLATION OF RESALE RESTRICTION AGREEMENT; PAYMENT OF "EXCESS SALES PROCEEDS" TO CITY If you sell or transfer your home in a way that violates the terms of the Resale Agreement, or if the City does not choose to purchase your home and you cannot find an eligible buyer, then you must pay to the City any "Excess Sales Proceeds" that result from the sale of your house. For example, if you do not sell your home to the City or to an eligible purchaser, but to someone else for market value, then you will owe the City any "Excess Sales Proceeds" that result from the sale. The term "Excess Sales Proceeds" is defined in the Resale Agreement as the amount by which the gross sales proceeds you receive from the ineligible buyer exceed the Maximum Restricted Resale Price for the home. Another way to put it is the following: Gross Amount of Money the New Buyer Paid for the House 72 HC 02-26-2026 72 of 136 MINUS Maximum Restricted Resale Price (from City Response Notice) EQUALS Payment to the City of Excess Sales Proceeds The amount of Excess Sales Proceeds that you pay to the City is used by the City for other affordable housing programs to help other median and moderate income families purchase a home. Example 3 shows how the Excess Sales Proceeds are calculated. EXAMPLE 3 You sell your house at the end of eight years. You originally paid $341,000 for your home. The City Response Notice sets the Maximum Restricted Resale Price at $398,560. The City does not choose to purchase your own, and you are unable to find a buyer who qualifies as an eligible purchaser. You sell the house for $500,000. You must pay the City Excess Sales Proceeds as calculated below: Total Amount Market Purchaser Paid For House $ 500,000 MINUS Maximum Restricted Resale Price (from City Response Notice) - 398,500 Amount of Excess Sales Proceeds You Pay to City $101,500 In cases where transfer of your home to another person is by means other than sale (with the exception of a creditor taking title), the amount of Excess Sales Proceeds is the difference between the original purchase price and the fair market value of the home at the time of transfer VIOLATIONS OF BMR REQUIREMENTS If you violate any provisions of the City documents, you are considered to be in default under the Resale Agreement. Also, if you default under any loan on the home, such as a mortgage or home equity loan, you would also be considered to be in default under the Resale Agreement. If you do not correct the violation, the City could require you to repay Excess Sales Proceeds and/or exercise its option and buy your home for the Maximum Restricted Resale Price. The City could also go to court and get a court order to enforce the provisions of the City documents, which may result in a foreclosure on your home. The City may learn of violations of the Resale Agreement and program restrictions through periodic audits and other resources available to the City. The City may take all actions necessary to verify occupancy of the unit by the persons on the title to the unit. Any homeowner who violates the terms of the Resale Agreement may be forced to sell the unit to the City, who 73 HC 02-26-2026 73 of 136 will normally then sell the unit to the next eligible purchaser on the waitlist. The City will require the owner to reimburse the City for any rent that was collected in excess of that allowed by the Resale Agreement. Forced Sale due to Breach of Resale Agreement with Option to Purchase Owners who breach the requirements of the Resale Agreement are violating the City Council’s policy of providing homeownership opportunities to median and moderate income households. The number of people on the BMR waitlist often exceeds the number of BMR units available. Therefore, when the City confirms that an owner has breached the terms of the Resale Agreement, especially by not living in the BMR unit, the City may exercise its option and force the sale of the BMR unit. Foreclosure If a lender records a Notice of Default on a BMR unit, then a breach of the terms of the Resale Agreement has occurred. The City shall inform the owner of the action that needs to be taken to cure the default and by what date the default must be cured. If the owner is unable to cure the default, then the City again may exercise its option and force the sale of the BMR unit to preserve the unit as affordable housing. 74 HC 02-26-2026 74 of 136 Signature Page Please sign this Buyer's Disclosure Statement in the space provided below, keep a signed copy for your records, and return the original to the City at the following address: City of Cupertino Community Development Department 10300 Torre Avenue Cupertino, CA 95104 I have received, read and understand the above Buyer's Disclosure Statement. I also understand the following: 1. The restrictions last for 99 years. 2. The home may be sold only to a median or moderate income family for 99 years. 3. The resale restrictions will usually reduce the property's sale price compared to the sales price of other homes. The sales price that I receive may be less than half the price of an unrestricted home. 4. Refinancing of the property and home equity loans are restricted. 5. I must contact the City of Cupertino before any sale or refinancing of the property and before receiving a home equity loan. Any sale or refinancing or home equity loan must be approved by the City. 6. I must live in the home. I cannot lease or rent it unless approved by the City for hardship. 7. The City has the right to buy my home at a restricted price when I decide to sell it or if I violate any of the provisions of the agreements I have signed. By: Signature of Buyer Print Name of Buyer 75 HC 02-26-2026 75 of 136 Exhibit 6- City of Cupertino Housing Mitigation Program BMR RENTER OCCUPANCY CERTIFICATION Property Name: Property Owner: Address of BMR Unit: Head of Household Name: Co-Head of Household Name(if applicable): HOUSEHOLD MEMBERS - List below all persons who live in the unit. Household Member Age Relationship to Head of Household ` By signature below, I (print name) hereby certify to the City under penalty of perjury that I and all of the Household Members listed above occupy the rental unit located at (print address) as my/our principal place of residence and that I/we have occupied the Premises for at least 10 months of the previous year. I further certify that there are no additional occupants residing in the unit. Criminal and Administrative Actions for False Information You understand that knowingly supplying false, incomplete or inaccurate information may constitute a felony, punishable under Federal or State criminal law. Knowingly supplying false, incomplete or inaccurate information is grounds for termination of your lease. Instructions to BMR Renter and Property Manager: Please complete this form and return, along with a copy of the updated lease agreement, to RISE Housing. 76 HC 02-26-2026 76 of 136 City of Cupertino Housing Mitigation Program BMR RENTER OCCUPANCY CERTIFICATION Signature of Household Adults: Date: 1. 2. 3. 4. TO BE COMPLETED BY THE PROPERTY OWNER OR MANAGER (Print Signature of Property Owner or Manager: Date: Return this completed form either by email, fax, or mail as follows: Email: cupertino@risehousing.com Phone: (415) 301-5448 Mail: Rise Housing – City of Cupertino 1990 N California Blvd, Walnut Creek, CA 94596 77 HC 02-26-2026 77 of 136 Exhibit 7- City of Cupertino Housing Mitigation Program Certification of Receipt of Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units- Rental Property Owner’s and/or Managing Agent The undersigned received a copy of the Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units (BMR Manual) for the City of Cupertino’s Below Market Rate (BMR) Housing Mitigation Program. Further, the undersigned understand that the BMR Manual requires compliance with the requirements described in the Procedures. Development Name: Site Address: Signature Signature Printed Name Printed Name Date Date Signature Printed Name Date Property Owner Co-Owner Property Manager or Owner’s Managing Agent 78 HC 02-26-2026 78 of 136 EXHIBIT 8- BELOW MARKET RATE (BMR) ADDENDUM TO LEASE CONTRACT Date of Lease Contract: Unit Number: Address: Resident(s) name(s) This Below Market Rate Addendum (“BMR Addendum”) is made part of the Lease Contract (“Lease”) dated as of the Lease Date referenced above between the Resident(s) named above (all individuals identified above are individually and collectively referred to herein as “Resident”) and (“Owner”) for the real property located at the Address listed above in the Unit Number listed above (the “Premises”). This BMR Addendum is in addition to all terms and conditions contained in the Lease, and all attachments to the Lease, which shall remain the same and in full force and effect except as modified in this BMR Addendum. To the extent that the terms of this BMR Addendum conflict with those of the Lease, this Addendum shall control. 1. BMR Program. Resident understands and acknowledges that the Premises is operated in accordance with an Agreement Containing Covenants and Restrictions (Including Declaration of Resale Controls) (“Agreement”) between the Owner and the City of Cupertino (“City”). The Premises and the Lease are subject to various laws, rules, and regulations governing the affordable housing component of the Below Market Rate Rental Program (hereinafter referred to as the “BMR Program”). Resident understands and agrees that this BMR Addendum and/or the Lease may be amended at any time upon thirty (30) days’ notice as necessary to ensure compliance with all laws, rules, regulations, and agreements governing the BMR Program and/or the Premises. 2. BMR Program Eligibility. Resident understands and acknowledges that Resident’s eligibility to qualify for a unit under the BMR Program and occupy the Premises is based on, among other criteria, information provided by Resident to the City or its Designee, including information regarding Resident’s household income and assets and Resident’s household size. Prior to approving Resident for a BMR Unit, and not less frequently than annually thereafter, the City or its Designee must obtain a certification from Resident demonstrating that the household is an Extremely Low Income, Very Low Income or Low Income household, as such limits are defined by the Agreement and/or BMR Program Policies and Procedures Manual, and meets the specific eligibility and occupancy requirements established for the Premises. 3. Misstatements on Application or Certification Forms. Resident has completed an application and income certification and household composition forms in connection with securing the Lease. Resident represents that all information provided to Owner and the City or its Designee is true, complete and correct to the best of Resident’s knowledge. The City or its Designee has relied upon the statements set forth in those documents in deciding to rent the Premises to Resident and in determining Resident’s eligibility for the BMR Program. It is agreed that, should Owner or the City or its Designee subsequently discover any misstatements or omissions of fact in the Resident’s application or on any certification forms, any such misstatements or omissions shall be deemed a material and incurable breach of the Lease and shall entitle Owner to serve Resident with a notice terminating the tenancy. 4. Annual Recertification. Resident’s eligibility for housing under the BMR Program must be certified each year. Resident agrees to fully cooperate in the recertification process including timely providing to City or its Designee all necessary information regarding household income and household composition, as well as signing all necessary verifications, authorizations, and other forms relating to the recertification process. Failure to provide accurate and timely information required for recertification will constitute a material breach of the Lease and may lead to the termination of the tenancy. 5. Change in Occupants. Resident understands and agrees that additional occupants will be allowed and/or disallowed in accordance with income guidelines per the BMR Program Policies and Procedures Manual, Owner’s occupancy standards, and applicable laws. Before any change in occupancy occurs, Resident must receive written permission from the City or its Designee and Owner. 6. Disclosure of Information Provided. Resident understands information provided by Resident to Owner may be subject to inspection by the City, its Designee, or certain government agencies or their agents who may have oversight over the BMR Program and/or Owner. Resident hereby authorizes representatives of any of these entities to receive and review any information supplied by Resident to any of the others in connection with BMR Program eligibility, the Lease, or Resident’s tenancy. 7. Inspection of Premises and Conformity with BMR Program Manual. Resident hereby affirms the City’s authority to conduct, or have conducted by its Designee, reasonable inspections of the Premises and to take any actions otherwise necessary to conform to the BMR Program Policy and Procedures Manual. 79 HC 02-26-2026 79 of 136 8. Termination. The Lease may only be terminated for one or more of the following reasons: (a) failure of Resident to qualify as eligible under the BMR Program due to misstatements or omissions of fact in the Resident’s application or any certification forms; (b) failure to provide any information required reasonably requested by the City or its Designee to establish or recertify Resident and Resident’s household as eligible under the BMR Program; or (c) for good cause, including violation of the terms and conditions of the Lease, violations of applicable federal, state, or local law, or other good cause. 9. Notice of Rent Increases. Rent may not be raised more often than once every twelve (12) months. Owner will provide Resident with at least sixty (60) days’ written notice of any increase in rent under the Lease. 10. Subleasing Prohibited. Resident understands and hereby agrees that subleasing of the Premises or any spaces reserved for the use of the Resident or Resident’s household is prohibited. 11. Maintenance or Repairs. Resident hereby agrees to inform Owner within twenty-four (24) hours of any need for maintenance or repair of the Premises or any spaces reserved for the exclusive use of the Resident or Resident’s household. 12. Security Deposit and Initial Term. Any security deposit required by the Lease shall not exceed an amount equal to two (2) months’ rent, based on the amount of monthly rent set forth for the initial Lease term, which shall be one year. 13. Nondiscrimination. Owner does not discriminate against persons on the basis of race, color, religion, sex (including pregnancy, childbirth, medical conditions related to pregnancy or childbirth, and gender), sexual orientation, marital status, national origin, ancestry, familial status, source of income, medical condition, physical condition, mental or physical disability, physical appearance unrelated to the responsibilities of a tenant, or perception of any of the foregoing. 14. No Third-Party Beneficiary. Resident is not a party to the Agreement between the Owner and the City nor is Resident entitled to claim any right or benefit under the Agreement, including the status of a third-party beneficiary under the Agreement. Nothing in the Agreement, express or implied, is intended to confer any rights or remedies, on any persons other than the parties to it and their respective and permitted successors and assigns. 15. Incorporation of Agreement. The Agreement is hereby incorporated into this Addendum and the Lease and made part thereof. Resident agrees to abide by the Agreement in all respects. Any failure to comply with the Agreement shall be deemed a breach of the Lease. [Signatures on following page] 80 HC 02-26-2026 80 of 136 The undersigned certifies that he/she/they has read and understood the above-provisions of this BMR Addendum and agrees to abide by its terms. RESIDENT: Resident Name Date Resident Name Date Resident Name Date Resident Name Date Resident Name Date Resident Name Date OWNER OR OWNER’S REPRESENATATIVE (signing on behalf of owner): Signature Print Name Date Title/Position 81 HC 02-26-2026 81 of 136 Exhibit 9- City of Cupertino Below Market Rate Housing Program CAPITAL IMPROVEMENT REQUEST FORM From: (“Owner”) Premises Address: (“Premises”) Date: Description of Improvements: Estimated Cost: $ Original Purchase Price: $ A copy of the building permit (if required) is attached Proposed Improvements must cost at least Two Thousand Dollars ($2,000) and must be approved by the City in writing prior to construction. Please see Exhibit A (attached) for a list of Eligible Capital Improvements. Owner should retain copies of contracts, invoices, and receipts for all completed capital improvements. These documents will be necessary to establish the Maximum Restricted Resale Price of the Premises upon subsequent transfer. I hereby request City approval of the following capital improvements I intend to make to my Premises: You may submit this information either by email, fax, or mail as follows: Email: cupertino@risehousing.com Phone: (415) 301-5448 Mail: Rise Housing – City of Cupertino 1990 N California Blvd, Walnut Creek, CA 94596 82 HC 02-26-2026 82 of 136 City of Cupertino Below Market Rate Housing Program Attachment A ELIGIBLE CAPITAL IMPROVEMENTS • Remodels and room additions (including decks and porches) • New or upgraded landscaping, irrigation, sprinkler system • Hardscape such as pavement, block or retaining wall, patio • Fencing • Storm windows, doors • New roof • Upgraded wiring, plumbing, duct work • New furnace, water heater • Built-in appliances • New flooring or wall-to-wall carpeting • Upgraded insulation • Countertops • Cabinets • Solar Panels 83 HC 02-26-2026 83 of 136 CITY OF CUPERTINO REQUEST FOR PROPOSAL FOR Below Market Rate Housing Program Administrator [CDD-2025-827] Issue Date: November 3, 2025 Due Date: December 3, 2025 Contact Person during Proposal Period: Nicky Vu, Senior Housing Coordinator Phone: 408-777-1347 nickyv@cupertino.gov COMMUNITY DEVELOPMENT DEPARTMENT City Hall • 10300 Torre Avenue • Cupertino, CA 95014-3255 84 HC 02-26-2026 84 of 136 REQUEST FOR PROPOSAL CITY OF CUPERTINO Contents 1. INVITATION ....................................................................................................................................... 1 2. PROJECT SCOPE OF WORK ............................................................................................................. 1 3. SUBCONSULTANTS .......................................................................................................................... 2 4. TENTATIVE TIMELINE ...................................................................................................................... 2 5. HOUSING COMMISSION MEETING .............................................................................................. 2 6. SUBMITTAL REQUIREMENTS ......................................................................................................... 2 7. CLARIFICATIONS AND QUESTIONS………………………………………………………………….7 8. SUBMITTAL PROCESS ...................................................................................................................... 7 9. EVALUATION PROCESS .................................................................................................................. 7 10. COST PROPOSAL ............................................................................................................................................................ 8 11. SELECTION CRITERIA ...................................................................................................................... 8 12. SELECTION PROCESS ...................................................................................................................... 9 13. DISCLAIMERS AND RESERVED RIGHTS ..................................................................................... 9 14. CONTRACT REQUIREMENTS ......................................................................................................... 9 ATTACHMENTS ATTACHMENT A: Scope of Work ATTACHMENT B: Sample Professional/Consulting Services Agreement ATTACHMENT C: Insurance Requirements ATTACHMENT D: References for Portfolio 85 HC 02-26-2026 85 of 136 1. INVITATION The City of Cupertino (City) invites proposal submittals from qualified consultants to provide services to administer the City’s Below Market Rate (BMR) Housing Program on an annual fiscal year basis (July-June). The City has a population of approximately 60,000 resident and approximately 22,000 housing units. The City’s Housing Mitigation Program (BMR Program) was adopted in 1992 to generate affordable housing. The ordinance requires developers to provide a specified number of affordable owner-occupied and rental units. BMR for-sale units are made available to median and moderate-income households. BMR rental units are made available to low and very low-income households. The units are managed in accordance with City Council adopted guidelines, known as Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units (BMR Admin Manual) which is available on the City’s Housing website. These units are subject to deed restrictions which ensure that the units remain affordable for the longest possible period of time. Since the adoption of the BMR program, the City has secured 260 total BMR units, of which 118 units are for-sale units and 142 are rental units. The City is seeking to secure a firm that has the required experience, qualifications, expertise and resources to perform the services identified in this Request for Proposal (RFP). The Consultant scope of services may include, but is not limited to the Administration Services, BMR Purchase Program Services, and BMR Rental Program Services listed in Attachment A – Scope of Work. The City intends to review proposals received and select the highest qualified consultant based on the criteria listed in this RFP. The initial contract is expected to cover services for Fiscal Year 2026-27, however may be awarded to the selected vendor for multiple fiscal years, not to exceed four years. Additionally, the City may award a contract for one year and retain the right to extend the contract for additional one-year periods not to exceed a total of four years. 2. PROJECT SCOPE OF WORK The Consultant will perform under the general direction of the Housing Division within the Community Development Department and consult with other City personnel in administration of the Below Market Rate Housing program. The scope of work includes general administration as the primary contact handling inquiries and correspondence from applicants, current homeowners and renters, and property managers; maintenance of the waitlist and lottery system, necessary marketing and outreach for the program; facilitation of sales and purchases of BMR units for ownership; initial pricing and improvement assessments for home valuation; facilitation of escrow closing and recordation of deed restricting documents; monitoring of units and properties for compliance with rent limits; income recertification of participating tenants; maintaining policies compliance with relevant federal, state, regional, and local guidelines for administering low-income housing units; and other tasks as more thoroughly detailed in Attachment A – Scope of Work. The Consultant will provide staff who will work offsite, but provide required staff to support the City while interacting with the community at outreach events and public hearings for the Housing Commission or City Council, as applicable. 86 HC 02-26-2026 86 of 136 3. SUBCONSULTANTS Subconsultants or subcontractors that will support the lead Consultant and may be included as a part of the project team should be identified. The City is committed to securing high quality services that will result in a successful program or project outcome. Subconsultant staff and experience shall be included in the response to this RFP. 4. TENTATIVE TIMELINE The tentative RFP timeline is provided for the convenience of prospective proposers and is subject to change. Any such change will be stated in an addendum to this RFP. The tentative RFP timeline is as follows: 5. HOUSING COMMISSION MEETING The City announced the RFP during a meeting for prospective proposers to learn about the project and ask clarifying questions at a public hearing of the Housing Commission. The date and time of the meeting was as follows: Date: October 23, 2025 Time: 5:30 PM PST Duration: 30 minutes Meeting Minutes: https://cupertino.legistar.com/Departments.aspx 6. SUBMITTAL REQUIREMENTS The Proposal submittal is not to exceed 20 pages, excluding table of contents, cover letter, and resumes for key personnel. The City prefers a quality submission over quantity and succinct, responsive proposals are requested. Consultant proposal submissions are to provide the following information: • business type (corporation, partnership, sole proprietorship) • firm’s organization structure, • background and general qualifications, • subconsultants, and 87 HC 02-26-2026 87 of 136 • recent experience with working in Below Market Rate Program Administration in California, particularly in the City of Cupertino and the San Francisco Bay Area. MINIMUM QUALIFICATION In order for the proposal to be considered responsive, the Consultant must meet the following minimum qualifications. Failure to meet these minimum qualifications may deem the proposal non-responsive. 1. Consultant, or its subconsultant, must provide one example of administrating a Below Market Rate Housing program for a city or county municipality. Identify the public agency, term of the contract and brief scope of work. Include a reference for the municipality. Demonstration of these minimum qualifications shall be attached to the Cover Letter. Proposal shall be organized by tabs/dividers in the order of the sections as outlined below to facilitate review, with subconsultant work identified within each task item: A. Cover Letter - The cover letter of interest shall include an overview of the firm’s qualifications, specifically the minimum qualifications, and the name, address, and telephone number of the principal person the City shall contact regarding the proposal and DUNS number of the Consultant. Identify the location of the office(s) where the services will be performed. Additionally, include the signature(s) of the company officer(s) empowered to bind the firm, with the title of each (e.g., president, vice president, general partner), and the acknowledgment of the receipt of any addenda, by number, if issued for this Request for Proposals. B. Firm and Project Team Qualifications and Experience – Provide examples of municipalities the consultant has previously or currently performed Below Market Rate (BMR) administration within the previous 10 years. Include details that highlight the public agency project scope, project manager, subconsultants, contract term, final contract cost and a single client contact for each example provided. Examples should represent the firm’s qualifications, expertise and technical capabilities to fulfill all services specified and required to successfully accomplish the scope of work in this RFP. (up to 20 points) Identify the Project Manager and key staff involved in delivering the services outlined in this RFP. Identify the role of each and describe each team member’s experience, qualifications, and proposed role in the project. Relevant information includes related public sector experience; dates, approximate project cost and project duties/responsibilities. Key firm personnel shall be referenced to personnel resumes (up to 2 pages each) included in the proposal. Identify any subconsultants expected to be used in support of this project including firm resume, key personnel staff resume, and qualifications relative to their supporting role. Include an organization chart that identifies working relationships with team members included. (up to 15 points) 88 HC 02-26-2026 88 of 136 C. Work Plan Approach – Demonstrate your knowledge of the City of Cupertino’s current and pipeline BMR units, assume a reasonable count of resales and recertifications that will be required to maintain the portfolio, and plan for any required additions or reductions in work that varies between various years. In addition, provide a matrix with the annual workplan assumptions tailored to the size of the City’s BMR portfolio. Changes in program size from each year should account for the growth of the portfolio from in progress housing developments and reductions from the loss of expiring units. (up to 20 points) Present a well-developed approach to the Scope of Work, including procedures, methodologies, measures of effectiveness, team organization and scheduling of tasks to be performed as well as a statement outlining the anticipated involvement of City staff. Describe the proposed approach for addressing the required services and the firm’s ability to meet the City’s schedule, outlining the approach that would be undertaken in providing the requested services. Additionally, identify an approach to resolve potential critical issues and other elements of concern. Proposers are encouraged to suggest technical or procedural innovations that have been used successfully in BMR Administration and optional services may be used for the benefit of the program. List any specific use of technology programs that would streamline the timeline of delivery or provide a higher quality of service. (up to 15 points) D. California/Bay Area Integration – Describe how your firm’s program delivery model remains current and reflective of the rapidly changing landscape of affordable housing law in the State of California and/or Bay Area region. Identify how administrative policy change impacts your program to further greater affordable housing goals or align with new regulations. Indicate any regional Housing efforts your firm engages with that may align the City of Cupertino’s BMR Administration program more integrated with BMR Administration programs in the Bay Area and/or state of California. (up to 10 points) E. Cost Proposal and Fees – Provide a cost proposal to be evaluated with the initial submittal in accordance with Section 10. The cost proposal shall include the cost for tasks and hour and fee breakdown by the tasks detailed in the Scope of Work. Line items shall be broken out by subtask, when appropriate. The cost proposal shall include a schedule of fees that correspond to the duties necessary to perform all work listed in Attachment A - Scope of Work. The schedule of fees should also include an hourly rate for various level of staff that will be used when completing tasks related to, but not included with, the base proposal. Propose an annual cost breakdown that estimates the number of times each work item will need to be completed through an entire program year in alignment with the Work Plan approach. This calculation should be tailored to the size of the City of Cupertino’s BMR portfolio and the City’s specific procedures to be completed in the BMR Admin Manual. This will be used as the total annual funding request for the firm’s response to this RFP. (up to 20 points) F. Contract Acceptance - The Consultant must specifically agree, in writing, to accept 89 HC 02-26-2026 89 of 136 the Professional/Consulting Services agreement, including specifically the City’s Indemnification requirements and insurance coverage requirements, without modification, in the submitted proposal. If a Consultant has proposed changes to the Agreement, these must be submitted along with an explanation of the request as part of their response to this Request for Proposal. The City reserves the sole right to accept, reject or modify any proposed changes to the Agreement. Those documents are included as Attachments to this Request for Proposal (RFP). G. Conflict of Interest - Consultant shall acknowledge that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, that would conflict in any way with the performance of the services described in this Request for Proposals (RFP), and that it will not employ any person having such an interest. 7. CLARIFICATIONS AND QUESTIONS Questions and requests for clarification and/or additional information shall be directed in writing via email to Nicky Vu at nickyv@cupertino.gov by November 24, 2025, 12:00 pm PST. Include “RFP for [CDD-2025-827 BMR Program Administrator]” in the subject line. 8. SUBMITTAL PROCESS Interested firms must submit an electronic PDF format copy of their proposal to Nicky Vu at nickyv@cupertino.gov by December, 3, 2025, 5:00 pm PST. Include “RFP for [CDD-2025-827 BMR Program Administrator]” in the subject line. If a cost proposal is requested with the RFP submittal, submit under separate cover to purchasing@cupertino.gov. Make sure to follow all submittal instructions and include all required documents. Submitting documents electronically can take more time than anticipated so please allow enough time to finalize your submission by the stated deadline. Hard copies in any form will not be accepted. No faxed submittals will be accepted. Electronic submittals are the only form of submittal that will be accepted. The Consultant is responsible for all costs associated with the Proposal submission. 9. EVALUATION PROCESS Proposals will be evaluated by the City evaluation committee. Points will be assigned based on the proposer’s qualifications, ability, approach, effectiveness and efficiency in supporting each item being rated with consideration for the selection criteria identified in Section 6. Criteria Possible Points 1. Firm and Project Team Qualifications 35 90 HC 02-26-2026 90 of 136 2. Cost Proposal and Fees 20 3. Work Plan Approach 35 4. California/Bay Area Integration 10 Total Possible Points 100 After City’s evaluation committee reviews all submitted written proposals, the top ranked Consultant’s may be invited to deliver a presentation and participate in an interview. The details of the interview will be provided in a letter provided to the Consultant’s invited. However, a final determination of the highest ranked proposer and recommendation to proceed with contract negotiations may occur without an interview selection process. If an interview is conducted, it will occur after the proposals have been evaluated. The evaluation committee will again rank the interviewed consultants and the highest ranked proposer will be identified, based on the best overall ranking among the committee members. Contract negotiations will then begin with the highest ranked proposer. If negotiations with the highest ranked consultant are not successful, in consideration of either the scope or cost, the second ranked team will be invited to negotiate, and so on. 10. COST PROPOSAL A cost proposal shall be submitted under separate cover to purchasing@cupertino.gov prior to the submittal deadline. The cost proposal shall include all items outlined in Section 6E. Line items shall be broken out by subtask, if appropriate. Proposers must provide a price for each item in the cost proposal, even optional tasks. If optional tasks are proposed, those shall be identified individually. Approval of the individual optional tasks is at the City’s discretion. No markups shall be allowed on reimbursable expenses and the maximum markup on each subconsultant shall be 5%. 11. SELECTION CRITERIA Highly qualified Consultants will demonstrate the following evaluative criteria listed below, not necessarily in order of importance, specifically in line with the evaluation criteria identified in Section 9: • Prior experience performing similar types and magnitude of work. • Success and range of experience in previous administration work, including quality of work, success in meeting project deadlines, and success in meeting budgets • Qualifications and experience of key staff persons proposed to perform the work. 91 HC 02-26-2026 91 of 136 • Specific approach or solutions that align best with the expected scope of work • Ability to adapt to changes and factors throughout the process that may affect the project outcome. • Ability to provide a range of services that meet the project needs. • Special knowledge that demonstrates familiarity with greater Bay Area and California Housing efforts • Understanding and experience related to local, regional, and state agencies. • Experience with Cupertino BMR programs and those in the greater Bay Area. • Providing a competitive and efficient cost pricing proposal 12. SELECTION PROCESS The City’s Purchasing Officer will recommend to the awarding authority the highest ranked proposer who successfully negotiated scope and project cost with the City. The awarding authority’s acceptance of the proposal will be evidenced by a Notice of Award delivered to the selected consultant. 13. DISCLAIMERS AND RESERVED RIGHTS This Request for Proposal does not commit the City to award a contract or to pay any costs incurred in the preparation of a proposal or participation in response to this RFP. The City reserves the right to accept or reject any or all proposals received, waive any irregularities, negotiate with qualified proposers, select firms which, in its opinion, best serve the City’s interests or cancel the Request. The City reserves the right to reject any proposal that is determined to contain false, misleading, or materially incomplete information. The City reserves the right to require any proposer to submit additional clarifying data or other information the City deems necessary to substantiate the costs presented by the proposer. The City may also require proposer to revise one or more elements of its proposal in accordance with contract negotiations. 14. CONTRACT REQUIREMENTS Within ten calendar days of the date the selected Consultant is notified of award by the City it shall execute a standard City of Cupertino Professional/Consulting Services agreement. The Agreement will define basic contractual relationships with attachments that specify the Scope of Services, compensation schedule, and deliverable schedule. A sample City Professional/Consulting Services agreement is attached to this RFP as Attachment B. Note that the indemnity and insurance requirements that are included as Attachment C are identified in the agreements and must be accepted without modification. Business License Requirements: The consultant and their subconsultants must hold or obtain business licenses in the City of Cupertino for any work within City limits. If work for the City of 92 HC 02-26-2026 92 of 136 Cupertino is the only business within the City of Cupertino that the firm undertakes, no business license is required per City of Cupertino Municipal Code. A completed Internal Revenue Service Form W-9 may also be required to establish the vendor in the City’s Financial System. Failure of the selected consultant to make a timely submission may result in a rescission of acceptance of the proposal by the City and an award of the contract to another proposer. 93 HC 02-26-2026 93 of 136 Attachment A – Scope of Work I. Overview The City of Cupertino (“City”) requires a qualified consultant to provide services to administer the City’s Below Market Rate (BMR) Housing Program. II. Background The City’s Housing Mitigation Program (BMR Program) was adopted in 1992 to generate affordable housing. The ordinance requires developers to provide a specified number of affordable owner-occupied and rental units. BMR for-sale units are made available to median and moderate-income households. BMR rental units are made available to low and very low-income households. The units are managed in accordance with City Council adopted guidelines, known as Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units (BMR Admin Manual) which is available for view on the City’s Housing website. These units are subject to deed restrictions which ensure that the units remain affordable for the longest possible period of time. Since the adoption of this ordinance, the City has secured 260 total BMR units, of which 118 units are for-sale units and 142 are rental units. In accordance with all applicable Federal, State, and local laws, the contract for BMR Program Administration services will include, but is not limited to the following: III. Administration Services • Consultant will be the primary contact for the BMR Program and will handle all inquiries and correspondence from applicants, current BMR homeowners and renters, and property managers in buildings with units restricted under the BMR Program. • Consultant will advertise the BMR Program, as needed, to solicit buyers and renters for available units and to establish a waiting list. • Consultant will maintain a waiting list of qualified buyers and renters in accordance with the BMR Program guidelines. Maintenance of the waiting list includes reviewing required annual applications to remain on the waiting list, assisting City staff to conduct an annual lottery for new applicants, and sorting all applicants into the appropriate priority point level within the waiting list. • Consultant will utilize the City’s procedures, ordinance(s), resolution(s), and guidelines in the implementation of the BMR Program. • Consultant will provide suggestions to the City for potential modifications to the City’s application process, procedures, and/or guidelines to ensure effective operation of the BMR Program. • Consultant will maintain marketing content for the BMR Program, including flyers, website, and other material as needed. • When requested by the City, Consultant will advise and assist City staff on matters related to the BMR Program. • As necessary, Consultant will provide access to translation in other languages. • Consultant will manage all appeals submitted to the BMR Program. 94 HC 02-26-2026 94 of 136 IV. BMR Purchase Program Services • Consultant will manage the entire sale process from advertising of available units to completing the closing on the BMR unit. • Consultant will prepare and maintain the sales schedule for City approval. • Upon receipt of one or more applications for the purchase of a unit, Consultant will ensure that each application is complete, verify eligibility, and confirm priority points. Consultant will rank the applications according to criteria in the City’s written guidelines and coordinate approval with the City. • Consultant will be available to answer any questions regarding the BMR Program and will help facilitate escrow closing. Consultant will also facilitate recordation of the resale restrictions, requests for notice of default, subordination agreements, and any other applicable documents with the title company prior to close of escrow. • Consultant will maintain a list of local realtors and lenders interested in providing loans to qualified BMR Program applicants. • Consultant will inspect prospective sales units, hold at least one “open house” for prospective buyers, assist buyers with locating a realtor, financing, coordinate appraisal, property and termite inspections, prepare disclosure statements, open and close escrows all in accordance with accepted real estate practices, and coordinate close of escrow to meet program deadlines (90 days in most cases). • Consultant will provide or arrange Home Buyer education consistent with U.S. Department of Housing and Urban Development (HUD) standards. • Consultant will monitor BMR units annually to confirm program compliance and investigate and manage potential defaults. • Consultant will review and process requests for refinancing of BMR homes and junior loans in accordance with BMR Program guidelines. V. BMR Rental Program Services • Consultant will manage entire rental process including advertising of available units. • Consultant will provide the property owner / manager of projects containing City BMR units with the most current income and rent guidelines upon issuance by HCD and HUD each year. • Consultant will monitor BMR unit rents annually to ensure compliance with the required affordable rent levels under the BMR Program. • Consultant will advise the property owner / manager regarding their compliance with the BMR Program. • Consultant will verify the eligibility of prospective tenants qualified by the property manager. • Consultant will accept and review expedited re-applications submitted from displaced BMR tenants aiming to re-apply to the BMR list to be rehoused throughout the year. • Consultant will manage the entire recertification process annually to ensure renters maintain BMR Program eligibility. In the event that a renter no longer qualifies for the City’s BMR Program, consultant will work with the property manager to terminate the tenant’s BMR Program participation after the applicable appeal period has lapsed and to qualify a new applicant for that BMR unit. 95 HC 02-26-2026 95 of 136 VI. Estimated Project Timeline Consultant will perform the services for the program year identified in the Scope of Work Exhibit in this Agreement. This will include FY 26-27 (July 1, 2026 – June 30, 2027), but may include subsequent fiscal years (July 1, 2026 – June 30, 2029) at the City’s discretion to award an initial multi-year contract or retain the option to extend for additional on-year periods. Additional contract year awards may be based on total costs and available funding. VII. Conflict of Interest Consultant warrants that it has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, that would conflict in any way with the performance of the services described in this agreement, and that it will not employ any person having such an interest. Consultant agrees to advise the City immediately if any conflict arises. Consultant further understands that it and its staff members must abide by all applicable statues, rules, and regulations regarding conflicts of interest, including the Political Reform Act, Government Code Section 1090, and implementing regulations, including Title 2, Division 6, Section 18700 of the California Code of Regulations. 96 HC 02-26-2026 96 of 136 Attachment B 97 HC 02-26-2026 97 of 136 98 HC 02-26-2026 98 of 136 99 HC 02-26-2026 99 of 136 100 HC 02-26-2026 100 of 136 101 HC 02-26-2026 101 of 136 102 HC 02-26-2026 102 of 136 103 HC 02-26-2026 103 of 136 104 HC 02-26-2026 104 of 136 105 HC 02-26-2026 105 of 136 Attachment C 106 HC 02-26-2026 106 of 136 107 HC 02-26-2026 107 of 136 108 HC 02-26-2026 108 of 136 Attachment D – References for Portfolio Pipeline Projects: https://www.cupertino.gov/Your-City/Departments/Community- Development/Planning/Major-Projects Expiring Rental Units: Aviare 20 1/1/2028 Forge Homestead 15 11/8/2027 Park (City Center)4 10/31/2026 Hamptons 34 10/20/2027 Arioso 20 1/29/2028 Biltmore 2 8/30/2029 Aviare 2 7/8/2038 Markham 17 11/4/2039 TOTAL 114 109 HC 02-26-2026 109 of 136 CITY OF CUPERTINO Agenda Item Subject: Fiscal Year (FY) 2026-27 Community Development Block Grant (CDBG) Program and Below Market Rate Affordable Housing Fund (BMR AHF) funding allocations. Consider the FY 2026-27 CDBG and BMR AHF funding applications and make recommendations to City Council for final approval. CITY OF CUPERTINO Printed on 3/23/2026Page 1 of 1 110 HC 02-26-2026 110 of 136 HOUSING COMMISSION STAFF REPORT March 26, 2026 Subject Fiscal Year (FY) 2026-27 Community Development Block Grant (CDBG) Program and Below Market Rate Affordable Housing Fund (BMR AHF) funding allocations. Recommended Action Consider the FY 2026-27 CDBG and BMR AHF funding applications and make recommendations to City Council for final approval. Background An annual Notice of Funding Availability (NOFA) and Request for Proposals (RFP) (Attachment A) was issued on November 3, 2025, inviting applicants to apply for eligible capital housing projects (one-year funding cycle) for the upcoming FY 26-27. Public services are awarded on a two-year funding cycle, which were awarded on April 15, 2025, during a public hearing at the City Council (Attachment B). This award will continue to cover public services for FY 26-27, who will receive contract extensions for an additional year of service generally equivalent to the previous year of funding received, with adjustments made based on exact allocations received for each program. The current NOFA/RFP deadline ended on February 3, 2026. Housing Commission reviews CDBG, BMR AHF, and General Fund HSG applications and makes funding recommendations to the City Council. All funding amounts for FY 26-27 are subject to City Council approval. CDBG funding amounts will be reduced or increased proportionately for FY 26-27 based on final HUD allocations. On May 11, 2017, the Housing Commission adopted Resolution 17-02 (CDBG Contingency Plan, Attachment C), in the event that the City receives more or less CDBG funding from the United States Department of Housing and Urban Development (HUD). The Below Market Rate Affordable Housing Fund (BMR AHF) is a local funding source dedicated to increasing housing affordability within the City of Cupertino. The ten eligible activity uses for the fund are as follows: BMR Program Administration, Land Acquisition, New Construction, Acquisition and/or rehabilitation of buildings for permanent affordability, Preserving “at-risk” BMR Units, Substantial Rehabilitation, Rental Operating Subsidies, Down Payment Assistance, Direct gap financing, and Fair Housing. Thus, while awarding funds for the construction of new affordable housing, two activities which should be typically budgeted 111 HC 02-26-2026 111 of 136 2 for are BMR Administration and Fair Housing enforcement. FY 25-26 will be the final year of a four-year contract the City has enacted for BMR administration with Rise Housing. The costs of the final year of the contract is approximately $300,000. Fair Housing costs are approximately $50,000 per year. Per City Council direction, the execution of the next BMR administration contract will be budgeted from the General Fund. In order to fulfill the City’s commitment to the remainder of the administration contract, and to budget enough reserve funds to cover the costs associated with enacting new administration, fair housing, and other professional contracts until for the current year and for FY 26-27, a minimum of $400,000 would need to be maintained as a reserve. Discussion CDBG Funding HUD annually allocates CDBG funding 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. This is Cupertino’s 22nd year as an entitlement jurisdiction receiving a CDBG grant directly from HUD. The City anticipates that it will receive approximately $354,000 in FY 26-27 CDBG entitlement funding. Program income in the amount of $7,944 will be received and allocated from existing CDBG loan payoffs. HUD regulations implement maximum percentages that may be allocated to CDBG administration and public services. Of the total estimated funding, a maximum of 20% may be used for administrative costs to cover salary and benefits of staff who operate the CDBG program, a maximum of 15% may be used for public services, and the remaining 65% may be used for capital housing projects. As noted earlier, CDBG funding amounts will be reduced or increased proportionately for FY 26-27 based on final HUD allocations and City Council approval. FY 26-27 CDBG Budget (est.) Entitlement Amount (EN) $354,000.00 Program Income (FY 26-27) $7,942.00 Unexpended Funds ~$50,000.00 Total Revenues $411,942.00 Program Administration (20% EN) $70,800.00 Public Service (15% EN) $53,100.00 Capital/Housing Projects (65% EN + Unexpended Funds) ~$288,042.00 Total Expenses $411,942.00 HUD regulations require that eligible activities selected for funding must benefit very low and low-income households, eliminate a blighted area, or address an urgent (emergency) 112 HC 02-26-2026 112 of 136 3 community need, and must also meet a national objective. In addition, only certain types of eligible activities qualify under the CDBG regulations. Examples of eligible activities are: • Acquisition of Land • Public improvements • Public service activities • Affordable housing developments • Property acquisition for affordable housing • Rehabilitation of affordable units 2026-27 CDBG Program Administration Funds An estimated total of $70,800.00 will be used for CDBG program administration. The City will use these funds for administrative costs to cover salary and benefits of staff who operate the CDBG program. 2026-27 CDBG Capital Housing Project Funds (One-Year Funding Cycle) An estimated total of $288,042 is available to be used for eligible CDBG capital housing projects. This consists of FY 26-27 funding and unexpended funding from prior years. City staff conducted extensive outreach and the NOFA/RFP was sent to over 250 contacts in the affordable housing community. The City received two applications in this category totaling $267,500.00. The first application received was for $107,500 from Rebuilding Together Silicon Valley. The second is for $160,000 from West Valley Community Services for rehabilitation of the Vista Village apartments. The City recommends fully awarding both projects and maintaining the remainder as reserve to be awarded to either project as a contingency via minor amendment. The Vista Village consists of 24 units of very low and low-income housing. The award is specifically to renovate kitchens and bathrooms in 3 of these units. To satisfy the City’s requirement to spend down funds in accordance with HUD CDBG timeliness guidelines, if at any point in time, the City finds it necessary to reallocate the funds, either for an immediate drawdown or because the Vista Village project is unable to acquire building permits, the City will reserve the right to complete a Substantial Amendment to the FY 26-27 Annual Action Plan and will award the funds to the City Public Works Department for an applicable project. Funding recommendations are listed in the table below. 1 CDBG Capital Housing Projects FY 26-27 Application Summary Funds Available Funding Requests Funding Award FY 25-26 Funding Allocations a Rebuilding Together Silicon Valley- Homeowner Repair and Rehabilitation Program $107,500.00 $107,500.00 $107,500.00 b West Valley Community Services – Vista Village Rehabilitation $160,000.00 $160,000.00 $0 Sub-Total $288,042.00 $267,500.00 $267,500.37 $107,500.00 113 HC 02-26-2026 113 of 136 4 2026-27 BMR AHF Public Services (Two-Year Funding Cycle) The BMR AHF receives its revenue from the payment of housing mitigation fees from non- residential (commercial, retail, hotel, research and development (R&D) and industrial) and residential development. Formal agreements and monitoring are required for this program, but the requirements are less stringent than federal funding. FY26-27 is the second year in the two year cycle for eligible BMR AHF public services. An additionally application was not strictly necessary at this time, however, the City received one application in this category totaling $50,000.00. Funding recommendations are listed in the table below. 2 BMR AHF Public Services FY 26-27 Application Summary Funds Available Funding Requests Funding Award FY 25-26 Funding Allocations a Project Sentinel – Fair Housing Activities $50,000.00 $50,000.00 $50,000.00 Sub-Total $50,000.00 $50,000.00 $50,000.00 $50,000.00 2026-27 BMR AHF Capital Housing Project Funds (One-Year Funding Cycle) The City estimated up to $1,100,000 will be available to fund eligible BMR AHF projects for FY 26-27 at the time of the release of the NOFA prior to accounting for administrative and other expenses. As previously stated, staff recommends that a minimum of $400,000 be reserved to budget for these other expenses to cover the remainder of FY25-26 as well as to budget for upcoming expenses in FY 26-27. Therefore, the City in practice has $700,000 to award for affordable housing projects. The City received one application for FY 26-27 BMR AHF Capital Housing Projects. The application, Eden Housing – Wolf Rd, proposes 249 units built across two phases. The first phase will contain 101 units of mixed-income housing for school district employees, will contain approximately 34 low income units and 67 moderate income units. The second phase will contain 148 units, with 60 very low-income units, 86 low-income units, and two manager units. Staff recommendations are based on numerous criteria that include but not limited to the following: number of affordable units provided, level of affordability reached, special needs populations served, consistency with long range housing goals, availability of other funding, project readiness, community feedback, financial viability, and project feasibility. Regardless of award, staff will continue to support affordable housing projects through technical assistance to the developers and supporting applications for additional funding from state and federal sources such as Project Homekey+, Affordable Housing Sustainable Communities (AHSC), Local Housing Trust Fund (LHTF), Section 8 Project Based Vouchers (PBV), and other opportunities as they become available. If the project is unable to acquire planning entitlement, or the City receives additional BMR funds previously unaccounted for, the City will reserve the right to either uncommit funds committed to the project to be returned to the BMR fund balance, or to recommend awarding additional funds at a future Housing Commission meeting. Previously at the April 15, 2025 City 114 HC 02-26-2026 114 of 136 5 Council meeting, the Wolfe Road project was awarded $1,083,200 from the BMR AHF fund. An additional award of $666,880 would bring the City to a grand total of $1,750,000 committed to the project. Staff recommends that BMR funds below be committed at the following amounts, with award contingent on the developer’s attaining planning entitlements. 3 BMR AHF Capital Housing Projects FY 26-27 Application Summary Funds Available Funding Requests Funding Commitment FY 25-26 Funding Allocations a Eden Housing, Inc. – Wolfe Rd $1,100,000 $666,880.00 $1,083,200.00 Sub-Total $700,000 $1,100,000 $666,880.00 $1,083,200.00 Fiscal Impact CDBG programs and projects are funded by HUD grant funds. BMR AHF public services and projects are funded by housing mitigation fees collected from residential and non-residential development projects. Budget allocations for approved funding allocations will be included for City Council’s approval as part of the proposed and final budget. Analysis Attachment E provides a summary of the CDBG and BMR AHF funding applications. Process A public meeting will be held at a future City Council meeting. All required HUD notices will be published in the Cupertino Courier newspaper in advance announcing upcoming CDBG public hearings. Prepared by: Nicky Vu, Senior Housing Coordinator Reviewed by: Luke Connolly, Assistant Director of Community Development Approved for Submission by: Benjamin Fu, Director of Community Development Attachments: A - FY 2026-27 NOFA/RFP B - City Council April 15, 2025 Minutes C - Housing Commission Resolution 17-02 (CDBG Contingency Plan) D – FY 2026-27 CDBG and BMR AHF Commissioner Evaluations E - FY 2026-27 CDBG and BMR AHF Funding Application Summary 115 HC 02-26-2026 115 of 136 City of Cupertino Notice of Funding Availability (NOFA) and Request for Proposals (RFP) Issued: November 03, 2025 Deadline: February 03, 2026 The City of Cupertino has issued the fiscal year (FY) 2026/27 NOFA and RFP. The City is requesting proposals for eligible capital housing projects and public service programs. The City may award and appropriate funds to one or more eligible projects in each funding category. Funds must be used to serve low- and/or moderate-income households located within the City of Cupertino jurisdiction limits. The following funding sources are on a one-year grant funding cycle (FY 26/27): 1. Below Market Rate (BMR) Affordable Housing Fund (AHF) Capital Housing Projects (up to $1,100,000) 2. Community Development Block Grant (CDBG) Capital Housing Projects (approx. $280,000) The estimated CDBG dollar amounts may change based upon the final federal budget approved by Congress. BMR AHF allocations are subject to City Council approval and may change as a result. CAPITAL HOUSING PROJECT FUNDS: • Funding Source #1- BMR AHF Capital Housing Projects (FY 26/27): The City estimates up to $1,100,000 will be available to fund eligible BMR AHF capital housing projects on a competitive basis for FY 26/27. BMR AHF funds must be used for eligible housing projects that will serve low- and/or moderate-income households located within the City of Cupertino jurisdiction limits. Project Requirements: BMR AHF capital housing project funds will not be granted or issued as forgivable loans. The City invites eligible non-profit and for-profit Development Entities (DEs) to submit proposals for eligible funding activities, which include, but are not limited to:  Land acquisition  New construction  Acquisition and/or rehabilitation of buildings for permanent affordability  Substantial rehabilitation Project Affordability Requirements: BMR AHF affordable rental and/or ownership housing proposals must meet the City’s BMR requirements and offer 99 years of affordability. An affordable regulatory agreement will be recorded against the property to ensure affordability. Eligible Development Entities (DEs): Eligible DEs include non-profit and for-profit organizations licensed to conduct business in the State of California. • DEs must demonstrate credit worthiness, financial capacity, relevant experience to undertake acquisition, rehabilitation, operation of rental housing, or redevelopment of new affordable housing. • DEs must have no negative financial and project management history within the last five years (i.e., DEs has not been in monetary default on a loan and has been current on all financial obligations and compliance documentation). 116 HC 02-26-2026 116 of 136 Loan Terms and Requirements: Rental Ownership Loan Type: Interest Rate: Loan Term: Affordability Term: Security: regulatory agreements recorded against the property as required by the City other regulatory agreements recorded against the property as required by the Security Position: Will consider subordinating to a construction or permanent lender with City approval construction or permanent lender with Repayment Terms: Interest only. All outstanding interest and principal will be due in full and payable on or by the maturity date. Required 50/50 split of the principal will be due in full and payable on or by the maturity date. Required 50/50 Timeframe: Financial Pro- Forma: Submit development financial pro-forma to be reviewed by City. Subject to review by qualified third-party consultant/organization to determine reasonableness to be reviewed by City. Subject to review by qualified third-party consultant/organization to determine Environmental Conditions: All environmental conditions (EX: CEQA) that are applicable to an eligible project must be that are applicable to an eligible project Project Conditions: Project may be subject to Planning Commission and/or City Council approval prior to Deed of Trust, Promissory Note and other recorded regulatory agreements being executed and disbursement of funding being Commission and/or City Council approval prior to Deed of Trust, Promissory Note and other recorded regulatory agreements being executed and Underwriting Criteria: Proposals and DE’s will be underwritten in accordance with City policies which includes, but not limited to, compliance with the General Plan, BMR Housing Mitigation Program Procedural Manual (Housing Mitigation Manual), and Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units (BMR Manual). • Funding Source #2: CDBG Capital Housing Projects (FY 26/27): The City estimates allocating approximately $280,000 in funding for eligible CDBG capital housing projects on a competitive basis for FY 26/27. CDBG capital housing project funds must be used for projects that will serve low-income households located within the City of Cupertino jurisdiction limits. CDBG capital housing projects are subject to HUD Section 3 requirements. The CDBG program is directed toward expanding and maintaining the affordable housing supply; promoting housing opportunities and choices; maintaining and improving community facilities; increasing economic opportunities, accessibility, energy efficiency and sustainability; and providing supportive services specifically for persons of very low and/or low-income. Targeted groups might include persons who are homeless, seniors, persons with disabilities, and other special needs groups. 117 HC 02-26-2026 117 of 136 The City estimates receiving an approximate total of $354,000 in CDBG program entitlement funds from the United States Department of Housing and Urban Development (HUD) for FY 25/26. Approximately $50,000 in unexpended CDBG funds from previous years will be added to the eligible CDBG capital housing project category. CDBG funding is allocated on a competitive basis. A list of eligible CDBG capital housing project activities is available on the HUD website: https://www.hudexchange.info/cdbg-entitlement/cdbg-entitlement- program-eligibility-requirements/. RFP Review Process: Upon receipt of proposals, staff will conduct an initial review to determine program and/or project eligibility and completeness. The City reserves the right to request additional information from an applicant. After the RFP deadline, all eligible and complete applications will be forwarded to the City’s five-member Housing Commission for initial rating and ranking. A Housing Commission public hearing will be held in Spring 2025 and funding recommendations will be forwarded to the City Council for final approval. A City Council public hearing will be held in Spring 2025 to determine the final funding recommendations. Award Notification: In late Spring 2026, organizations will be notified of City Council final funding recommendations through this FY 26/27 NOFA/RFP. Disclaimer: This RFP does not commit the City to award any contract or developer agreement, execute any grant or loan documents, pay and pre-award expenses, or pay any costs incurred in the preparation of a proposal. The City reserves the right to: 1) accept or reject any or all proposals received; 2) waive a non-substantive deficiency or irregularity; 3) negotiate with any qualified applicant; 4) execute grant or loan documents in what it believes to be in the best interest of the City; 5) cancel this request, in part or its entirety, if it is deemed to be in the best interest of the City; 6) reject the proposal of any applicant who has previously failed to perform properly; 7) reject the proposal of any applicant who has failed to complete a contract within the specified timeframe; 8) reject the proposal of any applicant that is not in a position to fulfill a resulting contractual obligation; or 9) recommend partial funding of a proposal. Evaluation Criteria: Proposals will be reviewed and scored relative to the below program and project scoring summary. The maximum possible score is 100. Scoring Summary Points Maximum Possible Score 100 RFP Application Information & Deadlines: The RFP application period will open at 8:00am on Monday, November 03, 2025, and will end at 5:00pm on Tuesday, February 03, 2026. Organizations who intend to apply for funds through this RFP must apply online at www.citydataservices.net. To obtain a temporary login username and password, please visit and request at www.citydataservices.net. For additional questions, please contact Nicky Vu, Senior Housing Coordinator, at NickyV@cupertino.gov or (408) 777-1347. Any RFP application that does not meet the deadline will not be accepted. Note: All proposals are subject to the conditions, instructions and specifications included in this NOFA/RFP. Applicants will be notified of upcoming meetings and public hearings to discuss the expenditure of BMR AHF and CDBG funds. The City 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. 118 HC 02-26-2026 118 of 136 APPROVED MINUTES CUPERTINO CITY COUNCIL Tuesday, April 15, 2025 SPECIAL MEETING At 6:02 p.m., Mayor Liang Chao called the Special City Council Meeting to order in the City Hall Conference Room C, 10300 Torre Avenue, Cupertino, CA 95014. ROLL CALL Present: Mayor Liang Chao, Vice Mayor Kitty Moore, and Councilmembers J.R. Fruen, Sheila Mohan, and Ray Wang. Absent: None. CLOSED SESSION In open session prior to closed session, Mayor Chao opened the public comment period regarding the items on the agenda. The following members of the public requested to speak. Helena Cohen Mayor Chao closed the public comment period. 1. Subject: Conference with legal counsel-anticipated litigation; California Government Code Sections 54954.5(c) and 54956.9(e)(1): (1 case) Council met with legal counsel on the anticipated litigation. 2. Subject: Conference with Legal Counsel - Existing Litigation pursuant to Government Code § 54956.9: Yes In My Back Yard; Chunhua Tang; and California Housing Defense Fund v. City of Cupertino; Community Development Department of the City of Cupertino (25CV462924) Council met with legal counsel on the existing litigation. 3. Subject: Conference with Legal Counsel - Existing Litigation pursuant to Government 119 HC 02-26-2026 119 of 136 Code § 54956.9: Lixin (Leon) Chen; California Housing Defense Fund; and Yes in My Backyard v. City of Cupertino; City of Cupertino Community Development Department and City of Cupertino Planning Commission (25CV462857) Council met with legal counsel on the existing litigation. At 6:36 p.m., Mayor Chao recessed the meeting. OPEN SESSION At 6:45 p.m., Mayor Chao reconvened the Special City Council Meeting in open session and led the Pledge of Allegiance in the Cupertino Community Hall Council Chamber, 10350 Torre Avenue and via teleconference. ROLL CALL Present: Mayor Liang Chao, Vice Mayor Kitty Moore, and Councilmembers J.R. Fruen, Sheila Mohan, and Ray Wang. Absent: None. CLOSED SESSION REPORT City Attorney Floy Andrews conducted the open session report regarding the closed session held at 6:00 p.m. There was no reportable action. PRESENTATIONS 4. Subject: Presentation by Santa Clara County Fire Department Assistant Chief Hector Estrada on the Updated Local Responsibility Area (LRA) Fire Hazard Severity Zone Map Recommended Action: Receive presentation by Santa Clara County Fire Department Assistant Chief Hector Estrada on the Updated Local Responsibility Area (LRA) Fire Hazard Severity Zone Map Written communications for this item included a presentation. Council received the presentation by Santa Clara County Fire Department Assistant Chief Hector Estrada on the Updated Local Responsibility Area (LRA) Fire Hazard Severity Zone Map. CEREMONIAL ITEMS 5. Subject: Present proclamation honoring the life and legacy of Ty Bloomquist, a 120 HC 02-26-2026 120 of 136 dedicated employee of the City of Cupertino, who passed away on March 28, 2025 Recommended Action: Present proclamation honoring the life and legacy of Ty Bloomquist, a dedicated employee of the City of Cupertino, who passed away on March 28, 2025 Ty Bloomquist’s wife, Renee, made comments and received the proclamation. Mayor Chao introduced the proclamation honoring the life and legacy of Ty Bloomquist, a dedicated employee of the City of Cupertino, who passed away on March 28, 2025 and Director of Public Works Chad Mosely presented the proclamation. 6. Subject: Present a proclamation and recognize Cupertino's affiliated volunteer emergency response teams during Volunteer Week, April 20-26, 2025, for their outstanding contributions and dedicated service to the Cupertino community Recommended Action: Present a proclamation and recognize the contributions of CERT (Community Emergency Response Team) neighborhood responders and organizations for Citizen Corps Emergency Response, CARES (Cupertino Amateur Radio Emergency Services) for radio communications, and MRC (Medical Reserve Corps) for medical support to the City during emergencies, as part of Volunteer Week, April 20-26, 2025 Fari Aberg, Jim Oberhofer, and Alberto Boleda, representing Cupertino’s Citizen Corps, received the proclamation. Mayor Chao presented the proclamation recognizing the contributions of CERT (Community Emergency Response Team) neighborhood responders and organizations for Citizen Corps Emergency Response, CARES (Cupertino Amateur Radio Emergency Services) for radio communications, and MRC (Medical Reserve Corps) for medical support to the City during emergencies, as part of Volunteer Week, April 20-26, 2025. 7. Subject: Receive presentation from the Santa Clara Valley Bird Alliance and present proclamation recognizing its 100 years of conservation and community Recommended Action: Receive presentation from the Santa Clara Valley Bird Alliance and present proclamation recognizing its 100 years of conservation and community Shani Kleinhaus, Environmental Advocate, and Matthew Dodder, Executive Director, with Santa Clara Valley Bird Alliance gave a verbal presentation and received the proclamation. Council received the presentation from the Santa Clara Valley Bird Alliance and Mayor Chao presented the proclamation recognizing its 100 years of conservation and 121 HC 02-26-2026 121 of 136 community. 8. Subject: Receive presentation from Rolling Hills 4-H Club and present proclamation recognizing its contributions to youth leadership development and service to the Cupertino community Recommended Action: Receive presentation from Rolling Hills 4-H Club and present proclamation recognizing its contributions to youth leadership development and service to the Cupertino community Written communications for this item included a presentation. Kai Wu and Audrey Papasin gave a presentation on behalf of Rolling Hills 4-H Club of Cupertino. Council received the presentation from Rolling Hills 4-H Club and Mayor Chao presented the proclamation recognizing its contributions to youth leadership development and service to the Cupertino community POSTPONEMENTS AND ORDERS OF THE DAY – None ORAL COMMUNICATIONS Written communications for this item included emails to the Council. The following members of the public spoke: Rhoda Fry discussed two City lawsuits and the Foothill-De Anza Community College District’s purchase of McClellan Terrace. Devendar discussed the Foothill-De Anza Community College District’s purchase of McClellan Terrace. Abhesi discussed the Foothill-De Anza Community College District’s purchase of McClellan Terrace. Stephen Shei discussed community engagement and cultural understanding. Peggy Griffin discussed the policies for written communications and commission hybrid meetings, and state housing legislation. Jennifer Griffin discussed various housing bills and student housing. 122 HC 02-26-2026 122 of 136 Ranjan Desai discussed the Mary Avenue Villas project. Planning Commissioner San R (representing self) discussed the agenda setting process, converting rental housing to student housing, and grant funded projects. Rathi Kartheek discussed the Foothill-De Anza Community College District’s purchase of McClellan Terrace. Venkatesan Ranganathan discussed the Foothill-De Anza Community College District’s purchase of McClellan Terrace and the Sound Wall separating N. Portal from The Rise project. David Y discussed the Evulich Court development and CAL FIRE’s updated Fire Hazard Severity Zone maps. Chao requested an informational memorandum on reactivating hybrid-format commission meetings, including potential costs and fiscal impacts. CONSENT CALENDAR (Items 9-12) Councilmember Wang removed Item 12 from the Consent Calendar for discussion. Mayor Chao opened the public comment period and, seeing no one, closed the public comment period. MOTION: Wang moved and Moore seconded to approve the items on the Consent Calendar except as indicated; and to reorder the agenda to move Item 12 before the Action Calendar. The motion passed with the following vote: Ayes: Chao, Moore, Fruen, Mohan, and Wang. Noes: None. Abstain: None. Absent: None. 9. Subject: Approval of April 2, 2025 City Council minutes Recommended Action: Approve the April 2, 2025 City Council minutes 10. Subject: Ratifying Accounts Payable for the periods ending March 14, 2025 and March 28, 2025 Recommended Action: A. Adopt Resolution No. 25-023 ratifying Accounts Payable for the Period ending March 14, 2025; and B. Adopt Resolution No. 25-024 ratifying Accounts Payable for the Period ending March 28, 2025 Written communications for this item included a supplemental report with staff responses 123 HC 02-26-2026 123 of 136 to councilmember questions and emails to Council. 11. Subject: Second reading and enactment of an ordinance to make amendments to the Cupertino Municipal Code, Title 2 to add Chapter 2.96 and codify the Economic Development Committee Recommended Action: Conduct the second reading and enact Ordinance No. 25-2269: “An Ordinance of the City Council of the City of Cupertino Amending City Code Title 2, Chapter 2.96: Economic Development Committee" PUBLIC HEARINGS – None ITEMS REMOVED FROM THE CONSENT CALENDAR As noted under the Consent Calendar, this item was moved before the Action Calendar. 12. Subject: Fiscal Year (FY) 2025-26 Community Development Block Grant (CDBG) Program, Below Market Rate Affordable Housing Fund (BMR AHF), General Fund Human Services Grant (HSG), Permanent Local Housing Allocation (PLHA), and County funding allocations. Recommended Action: Authorize the City Manager to execute the FY 2025-26 CDBG, BMR AHF, General Fund HSG, PLHA, and County funding agreements. Written communications for this item included emails to Council. This item was removed from the Consent Calendar for discussion. Community Development Director Ben Fu and Senior Housing Planner Nicky Vu reviewed the staff report. Mayor Chao opened the public comment period and the following members of the public spoke. Eric McKinlay Nader Vahdat Gia Pham, representing Housing Choices Jennifer Lucas, representing State Council on Developmental Disabilities (SCDD) Janet and Cindy Van Zoeren, representing Housing Choices Planning Commissioner Steven Scharf (representing self) Stephen Quan Ranjan Desai Sujatha Venkatraman, representing West Valley Community Services 124 HC 02-26-2026 124 of 136 Georgia Bacil, representing Senior Adults Legal Assistance Rathi Kartheek Lisa Mayor Chao opened the public comment period. Councilmembers asked questions and made comments. MOTION: Chao moved and Wang seconded to approve the recommended action, as modified, to authorize the City Manager to execute the FY 2025-26 CDBG, BMR AHF, General Fund HSG, PLHA, and County funding agreements, and allocate in the same way from the BMR fund, $1.9 million for Charities Housing and $1.08 million for Eden Housing; with a modification that Council will consider allocating an extra $1 million from the remaining $1.8 million BMR fund to Charities Housing, on the condition that they explore on potential ways to increase the parking stalls on their side of the project. Council did not vote on this motion. SUBSTITUTE MOTION: Moore moved and Fruen seconded to approve the recommended action, as modified, to authorize the City Manager to execute the FY 2025-26 CDBG, BMR AHF, General Fund HSG, PLHA, and County funding agreements; with a modification that $3 million of the Below Market Rate Affordable Housing Fund (BMR AHF) be committed to the Charities Housing - Mary Avenue Project and $1,083,200 be allocated to the Eden Housing - Wolf Road Project, and that a commensurate amount of funding ($1,083,200) is to be reallocated from the General Fund to the BMR AHF fund to accommodate the modified funding increase. The substitute motion passed with the following vote: Ayes: Chao, Moore, Fruen, Mohan, and. Noes: Wang. Abstain: None. Absent: None. At 9:16 p.m., Mayor Chao recessed the meeting. The meeting reconvened at 9:23 p.m. with all Councilmembers present. ACTION CALENDAR 13. Subject: Direct Staff on Commission Review of the Stevens Creek Boulevard Corridor Vision Study Recommended Action: Direct staff to present the Stevens Creek Boulevard Corridor Vision Study to either the Planning Commission or the Bicycle Pedestrian Commission for review and input. Written communications for this item included a supplemental report with staff responses to councilmember questions, Attachment B - Resolution of Support of SC Corridor Vision 125 HC 02-26-2026 125 of 136 Study, and emails to Council. Public Works Director Chad Mosley reviewed the staff report. Mayor Chao opened the public comment period and the following members of the public spoke. Harry Neil Jennifer Griffin Beck Poltronetti Planning Commissioner Steven Scharf (representing self) Peggy Griffin Planning Commissioner Seema Lindskog (representing self) Planning Commissioner San R (representing self) Planning Commissioner Tracy K (representing self) Lisa Michael Wang Mayor Chao closed the public comment period. MOTION: Moore moved and Wang seconded to direct staff to present the Stevens Creek Boulevard Corridor Vision Study for review and input to the Bicycle Pedestrian Commission, as already scheduled, and to the Planning Commission. The motion passed with the following vote: Ayes: Chao, Moore, Fruen, Mohan, and Wang. Noes: None. Abstain: None. Absent: None. 14. Subject: Review future agenda items requested by City Councilmembers Recommended Action: 1. Review the future agenda items list and adopt the staff recommendations for items 1-13 2. Provide direction for items 14-18 Written communications for this item included a supplemental report with staff responses to councilmember questions, Updated Attachment A - February 2025 Future Agenda Items List, Updated Attachment B - April 2025 Future Agenda Items List 20 Items, Attachment C - Updated Future Agenda Items, and emails to the Council. Deputy City Manager Tina Kapoor reviewed the staff report. Councilmembers asked questions and made comments. Mayor Chao opened the public comment period and the following people spoke. 126 HC 02-26-2026 126 of 136 Jennifer Griffin Peggy Griffin Mayor Chao closed the public comment period. MOTION: Chao moved and Wang seconded to agendize Item 18 as soon as possible to consider the Finch property for potential purchase or other form of partnership with the Cupertino Union School District (CUSD). The motion passed with the following vote: Ayes: Chao, Moore, Fruen, Mohan, and Wang. Noes: None. Abstain: None. Absent: None. MOTION: Chao moved and Wang seconded to continue review future agenda items requested by City Councilmembers to the next City Council meeting. The motion passed with the following vote: Ayes: Chao, Moore, Fruen, Mohan, and Wang. Noes: None. Abstain: None. Absent: None. ADJOURNMENT At 10:39 p.m., Mayor Chao adjourned the Regular City Council Meeting, per rule. There was no Council discussion on the remaining agenda items. CITY MANAGER REPORT The Council did not hear this item. ORAL COMMUNICATIONS – CONTINUED - None COUNCILMEMBER REPORTS 15. Subject: Councilmember Reports Councilmembers reported on their various committees and events as provided in the published agenda. FUTURE AGENDA ITEMS The Council did not hear this item. As noted under Oral Communications, Chao requested an informational memorandum on reactivating hybrid-format commission meetings, including potential costs and fiscal impacts. 127 HC 02-26-2026 127 of 136 16. Subject: Upcoming Draft Agenda Items Report A tentative council meeting agenda calendar was provided in the published agenda. Minutes prepared by: Kirsten Squarcia, City Clerk 128 HC 02-26-2026 128 of 136 RESOLUTION NO. 17-02 A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CUPERTINO RECOMMENDING APPROVAL OF THE 2017-18 CDBG, GENERAL FUND HUMAN SERVICE GRANTS (HSG) PROGRAM AND BELOW MARKET-RATE (BMR) AFFORDABLE HOUSING FUND (AHF) RECOMMENDED FUNDING ALLOCATIONS TO CITY COUNCIL FOR FINAL ADOPTION WHEREAS, the Housing and Community Development Act of 1974 provides that funds be made available for the Community Development Block Grant (CDBG) Program; and WHEREAS, the City of Cupertino wishes to apply for funds as an Entitlement Jurisdiction under said Act; and WHEREAS, the City of Cupertino estimates receiving a $307,952 CDBG entitlement grant from the United States Department of Housing and Urban Development (HUD) to be allocated for fiscal year 2017-18; and WHEREAS, the City of Cupertino estimates allocating $7,944 in CDBG program income for fiscal year 2017-18; and WHEREAS, The City of Cupertino estimates allocating up to $8,161 of available uncommitted CDBG funds from prior fiscal year 2016-17 for fiscal year 2017-18; and WHEREAS, the City of Cupertino is required to submit a fiscal year 2017-18 CDBG Annual Action Plan to HUD for review and approval prior to being allowed to expend CDBG funds for fiscal year 2017-18; and WHEREAS, the City of Cupertino put into place a CDBG Contingency Plan (Exhibit 1) because of the uncertainty in the federal budget and the revised timeline provided by HUD to submit the Action Plan; and BE IT FURTHER RESOLVED that the Housing Commission of the City of Cupertino hereby recommends approval of the fiscal year 2017-18 CDBG, HSG and BMR AHF recommended funding allocations (Exhibit 2) to the City Council for final adoption; and BE IT FURTHER RESOLVED that the fiscal year 2017-18 CDBG, HSG and BMR AHF recommended grant funding allocations will be decreased/increased based on final budget allocations by HUD and the City Council. Attachment B - Housing Commission Resolution 17-02 (CDBG Contingency Plan) 129 HC 02-26-2026 129 of 136 PASS ED AND ADOPTED at a regular meeting of the Housing Commission of the City of Cupertino this 11th day of May, 2017 by the following vote: Vote Members of the Housing Commission A YES: Chair Daruwalla, Vice Chair Chu, Kapil, Zhao, Bose NOES: none ABSENT: none ABSTAIN: none ATTEST : APPROVED: KerriH~ Nill~ Senior Housing Planner Chair, Housing Commission 2 130 HC 02-26-2026 130 of 136 Exhibit 1 CDBG Contingency Plan In the case of funding increase, the following plan is recommended: ® Public Services ($47,188): Distribute the additional available amount in the public services cap until an applicant is fully funded. If an applicant reaches the funding amount requested, any remaining funds will be distributed to other applicants who have not yet reached the maximum funding amount. ® Administration ($63,107): Funds are to be allocated to the City of Cupertino for CDBG administration. General Fund allocation will be reduced accordingly. ® Capital/Housing Projects ($213,259): Distribute the additional available amount in the capital/housing projects cap until an applicant is fully funded. If an applicant reaches the funding amount requested, any remaining funds will be distributed to other applicants who have not yet reached the maximum funding amount. In the case of a funding decrease, the following plan is recommended: ® Public Services ($47,188): Distribute any funding decrease proportionately among the remaining public service applicants, but maintain a minimum funding allocation of $15,000 for any applicant to the extent feasible. ® Administration ($63,107): Any decrease in funding will be supplemented by the General Fund for CDBG administration. ® Capital/Housing Projects ($213,259): Any decrease in funding will be supplemented by the Below Market Rate (BMR) Affordable Housing Fund (AHF) for CDBG capital/housing projects. 3 131 HC 02-26-2026 131 of 136 Exhibit 2 FY 2017-18 Funding Allocations FY 2017/18 Est. FY Housing Fiscal Year 2017/18 2017/18 FY 2017/18 Commission No. Grant Application Summary Funds Funding Funding Available Requests Recommendations as of May 11, 2017 Meeting 1 CDBG Public Service Applications: (Two-Year Funding Cycle, FY 2016/17 & 17/18) a Live Oak Adult Day Services -Senior Adult $ 15,098.00 $ 15,098.00 Day Care b West Valley Community Services -Community $ 32,090.00 $ 32,090.00 Access to Resource and Education (CARE) Sub-Total $ 47,330.00 $ 47,188.00 $ 47,188.00 2 CDBG Capital/Housing Project Applications: (One-Year Funding Cycle, FY 2017/18) a Rebuilding Together Silicon Valley -Housing $ 64,000.00 $ 64,000.00 Repair and Rehabilitation Project b West Valley Community Services -Vista $ 300,000.00 $ 149,259.00 Village Renovation Sub-Total $ 213,259.00 $ 364,000.00 $ 213,259.00 3 CDBG Program Administration: (One-Year Funding Cycle, FY 2017/18) a Administration $ 63,107.00 $ 63,107 .00 Sub-Total $ 63,107.00 $ 63,107.00 $ 63,107.00 General Fund Human Service Grants (HSG) 4 Applications: (Two-Year Funding Cycle, FY 2016/17 & 17/18) a Catholic Charities of Santa Clara County -$ 6,500.00 $ 6,500.00 Long-Term Care Ombudsman b Maitri -MTH Direct Client Services $ 23,400 .00 $ 23,400.00 C Senior Adults Legal Assistance -Legal $ 10,100 .00 $ 10,100 .00 Assistance to Elders Sub-Total $ 40,000.00 $ 40,000.00 $ 40,000.00 4 132 HC 02-26-2026 132 of 136 Below Market-Rate (BMR) Affordable 5 Housing Fund (AHF) Applications (Two-Year Funding Cycle, FY 2016/17 & 17/18): TBD -BMR Program Administration $ 175,000.00 $ 175,000 .00 a (Affordable Placement Program) b Project Sentinel -Landlord/Tenant Rental $ 35,000.00 $ 35,000 .00 Mediation Eden Council for Hope and Opportunity $ 10,000.00 $ 10,000.00 C (ECHO) -Fair Housing Services d West Valley Community Services -10311 & $ 160,000.00 $ 160,000.00 10321 Greenwood Court Renovation Project Sub-Total $ 380,000.00 $ 380,000.00 TOTAL $ 363,696.00 $ 894,295.00 $ 743,554.00 5 133 HC 02-26-2026 133 of 136 City Rebuilding Together Silicon Valley Repair and Accessibility Modification Services for Low-I $107,500.00 $.00 $5,320,995.00 2%2 93 Thank you for City West Valley Community Services Vista Village BMR $160,000.00 $.00 $8,228,471.00 2%2 95 Thank you for t TOTAL $267,500.0 $.00 $13,549,466.0 2% Cit Eden Housing, Inc Wolfe Road Mixed-Income Workforce Housing Develop $1,100,000.0 $.00 $451,062,391.0 %2 90 Very well writte TOTAL $1,100,000.0 $.00 $451,062,391.0 % Cit Project Sentine Fair Housing, Tenant-Landlord Counseling and Dispute $52,574.0 $.00 $5,740,034.0 1%2 88 Section 1B qu TOTAL $52,574.0 $.00 $5,740,034.0 1% TOTAL $1,420,074.0 $.00 $470,351,891.0 % Number of Evals Average Score Comments CDBG Capital Housing Below Market-Rate (BMR) Affordable Housing Fund (AHF) Capital Housing Project Below Market-Rate (BMR) Affordable Housing Fund (AHF) Public Service Project City of Cupertino FY 2026-2027 NOFA Application Summary Status Applicant Project Name Amount Requested Amount Awarded Total Budget % NPO Budget 13 4 HC 02-26-2026 134 of 136 Page 1 of 2 Attachment E FY 2026-2027 Community Development Block Grant (CDBG) and Below Market Rate Affordable Housing Funds (BMR AHF) Funding Application Summary 1. BMR AHF Public Services: Application 2a. Name of Organization: Project Sentinel Name of Project: Fair Housing – Tenant-Landlord Counseling and Dispute Resolution Services Annual Goal: 41 low-income Cupertino residents Project Description: Provide fair housing services to educate tenants and landlords on their respective rights and responsibilities, provides instruction on how to resolve housing problems, and conduct dispute resolution services such as mediation and conciliation to help resolve problems. Funding Request: $50,000.00 Housing Commission Funding Recommendation: $50,000.00 2. CDBG Capital Housing: Application 5a. Name of Organization: Rebuilding Together Silicon Valley (RTSV) Name of Project: Housing Repair and Rehabilitation Project Annual Goal: 7 low-income Cupertino homeowners Project Description: Provide critical home safety repairs and accessibility modifications for 7 low-income Cupertino homeowners. Funding Request: $107,500.00 Housing Commission Funding Recommendation: $107,500.00 Application 5b. Name of Organization: West Valley Community Services Name of Project: Vista Village Rehabilitation Annual Goal: 3 affordable housing units Project Description: Rehabilitate the kitchens and bathrooms of 3 affordable housing units within the Vista Village: an affordable housing project with 24 very low and low-income housing units. Funding Request: $160,000.00 Housing Commission Funding Recommendation: $160,000.00 *Please note that these funding allocations are subject to the City’s final CDBG allocation from the U.S. Dept. of Housing and Urban Development (HUD). Any changes in funding levels will adhere to the CDBG Contingency Plan (Attachment B). 135 HC 02-26-2026 135 of 136 Page 2 of 2 3. BMR AHF Capital Housing: Application 7a. Name of Organization: Eden Housing Name of Project: Wolf Rd Annual Goal: 249 affordable housing units Project Description: Develop new affordable housing in two phases. The first phase will contain 101 units of mixed-income housing for school district employees, with approximately 34 low income units and 67 moderate income units. The second phase will contain 148 units, with 60 very low-income units, 86 low-income units, and two manager units. Funding Request: $1,100,000 Housing Commission Funding Recommendation: $666,880 *Please note that BMR AHF capital housing allocations are recommended to be funding commitments that become awards which authorize loan agreement execution immediately upon the developers securing planning entitlements. 136 HC 02-26-2026 136 of 136