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Home My WebLink AboutHC 05-28-2026 Amended Searchable PacketCITY OF CUPERTINO HOUSING COMMISSION AGENDA 10185 North Stelling Road, Quinlan Conference Room and via Teleconference Thursday, May 28, 2026 5:30 PM Amended Amended on 05-22-2026 at 4:30 p.m. to add Item No. 3 to the agenda. 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 speaker representing a group of 2 to 5 or more people who are present may have up to 2 Page 1 1 HC 05-28-2026 1 of 72 Housing Commission Agenda May 28, 2026 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: i. 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_R46q0BN3S5-2jfDEn9m2cg i. Registrants will receive a confirmation email containing information about joining the webinar. ii. Speakers will be recognized by the name they use for registration. Once recognized, speakers must click ‘unmute’ when prompted to speak. iii. 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: i. Dial 669-900-6833 and enter WEBINAR ID: 820 4408 7613 ii. To “raise hand” to speak: Dial *9; When asked to unmute: Dial *6 iii. Speakers will be recognized to speak by the last four digits of their phone number. c. Via an H.323/SIP room system: Page 2 2 HC 05-28-2026 2 of 72 Housing Commission Agenda May 28, 2026 H.323 Information: 144.195.19.161 (US West) 206.247.11.121 (US East) Meeting ID: 820 4408 7613 SIP: 82044087613@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. i) 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. ii) 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. ROLL CALL APPROVAL OF MINUTES 1.Subject: Approval of the March 26, 2026 Housing Commission Minutes. Recommended Action: Approve the March 26, 2026 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: Fiscal Year (FY) 2026-27 Community Development Block Grant (CDBG) Draft Annual Action Plan (AAP) Recommended Action: Conduct Public Hearing; and 1. Approve the draft FY 2026-27 CDBG Annual Action Plan for submittal to HUD Page 3 3 HC 05-28-2026 3 of 72 Housing Commission Agenda May 28, 2026 Staff Report A - FY 2026-27 CDBG Annual Action Plan B - Housing Commission Resolution 17-02 (CDBG Contingency Plan) 3.Subject: Study session for strategies to meet affordable housing Regional Housing Needs Allocation (RHNA) goals of the 2023-2031 Housing Element. Recommended Action: Receive presentation on the status of the City’s progress on meeting RHNA goals and suggest strategies for producing additional affordable housing. Staff Report A - Housing Element Zoning Maps 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 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 4 4 HC 05-28-2026 4 of 72 CITY OF CUPERTINO Agenda Item Subject: Approval of the March 26, 2026 Housing Commission Minutes. Approve the March 26, 2026 Housing Commission Minutes. CITY OF CUPERTINO Printed on 5/22/2026Page 1 of 1 5 HC 05-28-2026 5 of 72 DRAFT MINUTES HOUSING COMMISSION Thursday, March 26, 2026 At 5:30 p.m. Chair Connie Cunningham called the regular Housing Commission meeting to order at the Quinlan Conference Room, 10185 North Stelling Road and via teleconference. ROLL CALL Present: Chair Connie Cunningham, Vice Chair Usha Narayan and Commissioners Jasmine Jose, Ram Sripathi (arrived at 6:31 p.m.) and Lida Xhindi. Absent: None. APPROVAL OF MINUTES 1. Subject: Approval of the December 08, 2025 Housing Commission Minutes. Recommended Action: Approve the December 08, 2025 Housing Commission Minutes. Commissioners made comments. Chair Cunningham made a correction to the minutes to update New Business Item No.2 to change “market rate housing” to “below market rate housing”. Chair Cunningham opened the public comment period and, seeing no one, closed the public comment period. MOTION: Narayan moved and Xhindi seconded to approve the amended December 08, 2025 Housing Commission Meeting Minutes. The amended motion passed with the following vote: Ayes: Cunningham, Narayan, Jose, Xhindi. Noes: None. Abstain: None. Absent: Sripathi. POSTPONEMENTS – None. ORAL COMMUNICATIONS – None. CONSENT CALENDAR – None. 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. 6 HC 05-28-2026 6 of 72 Housing Commission March 26, 2026 Assistant Housing Coordinator Evelin Meza introduced the item. Commissioners asked questions which staff responded to. Chair Cunningham opened the public comment period and, seeing no one, closed the public comment period. MOTION: Narayan moved to nominate Chair Cunningham as Chair. Chair Cunningham did not accept the nomination. The Commission did not vote on this motion. MOTION: Cunningham moved and Jose seconded to nominate Vice Chair Narayan for Chair. The motion passed with the following vote: Ayes: Cunningham, Jose, Sripathi, Xhindi. Noes: None. Abstain: Narayan. Absent: None. SUBSTITUTE MOTION: Cunningham moved to nominate Commissioner Xhindi as Chair. This motion was not seconded. The Commission did not vote on this motion. MOTION: Cunningham moved and Jose seconded to nominate Commissioner Xhindi for Vice Chair. Commissioner Xhindi did not accept the nomination. The Commission did not vote on this motion. MOTION: Narayan moved and Cunningham seconded to nominate Commissioner Jose as Vice Chair. The motion passed with the following vote: Ayes: Cunningham, Narayan, Sripathi, Xhindi. Noes: None. Abstain: Jose. Absent: None. 3. Subject: Housing Commission Annual Work Plan for Calendar Year 2026. Recommended Action: Consider and adopt the proposed Work Plan for 2026. Written communications for this item included a staff presentation. Assistant Housing Coordinator Evelin Meza gave a presentation. Commissioners asked questions which staff responded to. Chair Narayan opened the public comment period and, seeing no one, closed the public comment period. MOTION: Cunningham moved and Narayan seconded the staff recommendation to adopt the proposed work plan for 2026, with an amendment to add a special meeting date in the summer to study the housing mitigation manual. The motion passed with the following vote: Ayes: Narayan, Jose, Cunningham, Sripathi, Xhindi. Noes: None. Abstain: None. Absent: None. 4. Subject: Selection update for consultant for City’s Below Market Rate (BMR) Housing 7 HC 05-28-2026 7 of 72 Housing Commission March 26, 2026 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. Written Communications for this item included a staff presentation. Senior Housing Coordinator Nicky Vu gave a presentation. Commissioners asked questions which staff responded to. Chair Narayan opened the public comment period and, seeing no one, closed the public comment period. MOTION: Narayan moved and Cunningham seconded to close the item and accept and receive the presentation. The motion passed with the following vote: Ayes: Narayan, Jose, Cunningham, Sripathi. Noes: None. Abstain: Xhindi. Absent: None. 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. Written communications for this item included a staff presentation. Senior Housing Coordinator Nicky Vu gave a presentation. Deanne Everton, Executive Director of Rebuilding Together Silicon Valley, Sujata Venkatraman, Executive Director of West Valley Community Services, Carol Conn, Executive Director of Project Sentinel and Dixie Baus, Director of Real Estate Development with Eden Housing gave presentations. Commissioners asked questions which staff and the presenters responded to. Chair Narayan opened the public comment period and, seeing no one, closed the public comment period. MOTION: Narayan moved to approve the staff recommendation to consider the FY 2026-27 CDBG and BMR AHF funding applications and make recommendations to City Council for final approval. SUBSTITUTE MOTION: Cunningham moved and Jose seconded to approve the staff recommendation to consider the FY 2026-27 CDBG and BMR AHF funding applications and make recommendations to City Council for final approval 8 HC 05-28-2026 8 of 72 Housing Commission March 26, 2026 with an amendment to add $54,174 to Project Sentinel. The amended motion passed with the following vote: Ayes: Narayan, Jose, Cunningham, Xhindi. Noes: None. Abstain: Sripathi. Absent: None. STAFF AND COMMISSION REPORTS – Assistant Housing Coordinator Evelin Meza handed out Commissioner Recognition Certificates. FUTURE AGENDA SETTING – Study session on the housing mitigation manual (Cunningham, Narayan). ADJOURNMENT At 7:14 p.m. Chair Narayan adjourned the regular Housing Commission Meeting. Minutes prepared by: Lindsay Nelson, Administrative Assistant 9 HC 05-28-2026 9 of 72 CITY OF CUPERTINO Agenda Item Subject:Fiscal Year (FY) 2026-27 Community Development Block Grant (CDBG) Draft Annual Action Plan (AAP) Conduct Public Hearing; and 1. Approve the draft FY 2026-27 CDBG Annual Action Plan for submittal to HUD CITY OF CUPERTINO Printed on 5/22/2026Page 1 of 1 10 HC 05-28-2026 10 of 72 HOUSING COMMISSION STAFF REPORT May 28, 2026 Subject Fiscal Year (FY) 2026-27 Community Development Block Grant (CDBG) Draft Annual Action Plan (AAP) Recommended Action Conduct Public Hearing; and 1. Approve the draft FY 2026-27 CDBG Annual Action Plan for submittal to HUD Discussion The United States Department of Housing and Urban Development (HUD) annually distributes grants such as CDBG, Home Investment Partnerships Program (HOME), Housing Opportunities for People with AIDS (HOPWA), and Emergency Shelter Grants (ESG) to local jurisdictions for community development activities. Cupertino is one of nine entitlement jurisdictions within Santa Clara County. Entitlement grants are allocated on a formal basis, to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate- income persons. Funds are then allocated to jurisdictions 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. 2025-2030 Consolidated Plan The Consolidated Plan is a five-year long-range plan which determines which of the eligible CDBG activities best aligns with the City of Cupertino’s needs based on economic, housing, infrastructure, environmental and demographic research. The 2025-2030 Consolidated Plan was adopted by City Council on April 15, 2025, City Council approved the FY 2026-27 CDBG funding allocations on April 21, 2026. 2026-27 CDBG Annual Action Plan The FY 2026-27 Annual Action Plan (Attachment A) is a one-year plan that describes the eligible activities that the City intends to undertake during FY 2026-27 (July 1, 2026-June 30, 2027) to implement strategies to address the needs identified in the 2025-30 Consolidated Plan. The goal of the activities is to address priority housing and non-housing community development needs, 11 HC 05-28-2026 11 of 72 and to affirmatively further fair housing choice. As per HUD regulations, the City posted the document for a 30-day public comment period from April 24, 2026 through May 28, 2026. Any comments that are received will be included in AAP’s submission to HUD. The draft FY 2026-27 Annual Action Plan will be updated and finalized as needed prior to submission to HUD. The City is part of the Santa Clara County HOME Consortium and must submit the Annual Action Plan to HUD along with the County by the June 15th deadline. The County intends to submit the Annual Action Plan after approval from each of the HOME Consortium members by the deadline. 2026-27 CDBG Funding HUD allocated $322,534 for the FY 2026 Community Planning and Development Formula Program Allocations for FY 2026-27. In addition, the City expects receiving $7,944 in program income from existing CDBG loan payoffs and $50,000.00 in prior year unexpended funds. Between the FY 2026-27 entitlement grant, program income, and prior year unexpended funds, the City will have a total of approximately $380,478.00 of CDBG fund to use. FY 26-27 CDBG Budget (est.) Entitlement Amount (EN) $322,534.00 Program Income (FY 26-27) $7,944.00 Unexpended Funds ~$50,000.00 Total Revenues $380,478.00 Program Administration (20% EN) $64,500.00 Public Service (15% EN) $48,300.00 Capital/Housing Projects (65% EN + Unexpended Funds) ~$267,678.00 Total Expenses $380,478.00 FY 2026-27 CDBG Capital Housing Funding Allocations An approximate total of $267,678 is available for eligible CDBG capital housing projects. In FY 26-27 capital housing activities will be targeted to rehabilitation of low-income housing. Funding allocations are noted on the table below. 1 CDBG Capital Housing Projects FY 26-27 Application Summary Funds Available Funding Requests Funding Award Funding 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 Upgrades $160,000.00 $160,000.00 $0 Sub-Total $267,500.00 $267,500.00 $107,500.00 12 HC 05-28-2026 12 of 72 FY 2026-27 CDBG Public Service Funding Allocations Of the total anticipated entitlement amount, an approximate total of $48,300 has been allocated to eligible public service activities. Public service activities must benefit very low- and low- income households. Funding allocations are noted on the table below. 2 CDBG Public Services FY 26-27 Application Summary Available Requests Award Funding a Live Oak Adult Day Services $54,000 $22,000.00 $15,000.00 $16,800.00 b West Valley Community Service (WVCS) – Community Access to Resources and Sub-total $109,494.00 $48,300.00 $54,000.00 Sustainability Impact Approval of the FY 2026-27 CDBG Annual Action Plan will not result in a sustainability impact. Fiscal Impact CDBG programs and projects are funded by HUD. Approval of the FY 2026-27 CDBG Annual Action Plan will not have a fiscal impact. California Environmental Quality Act Not applicable. 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 – Draft FY 2026-27 CDBG Annual Action Plan B – Housing Commission Resolution 17-02 (CDBG Contingency Plan) 13 HC 05-28-2026 13 of 72 City of Cupertino Fiscal Year 2026-27 DRAFT Annual Action Plan Annual Update of the City’s Consolidated Plan for Period July 1, 2026, to June 30, 2027 Public Comment Period April 27, 2026 through May 28, 2026 Housing Commission Public Hearing Date: May 28, 2026 Prepared by the Department of Community Development Housing Division 10300 Torre Avenue Cupertino, CA 95014 To be Approved by Housing Commission May 28, 2026 14 HC 05-28-2026 14 of 72 Table of Contents Contents AP-05 Executive Summary - 91.200(c), 91.220(b) ...................................................................................... 3 PR-05 Lead & Responsible Agencies - 91.200(b) ........................................................................................ 6 AP-10 Consultation - 91.100, 91.200(b), 91.215(l) ...................................................................................... 7 AP-12 Participation - 91.401, 91.105, 91.200(c) ........................................................................................ 21 AP-15 Expected Resources - 91.420(b), 91.220(c)(1,2) ............................................................................. 24 AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3)&(e) .............................................................. 27 AP-35 Projects - 91.420, 91.220(d) ............................................................................................................ 30 AP-38 Project Summary ............................................................................................................................. 31 AP-50 Geographic Distribution - 91.420, 91.220(f) ................................................................................... 35 AP-55 Affordable Housing - 91.420, 91.220(g) ......................................................................................... 36 AP-60 Public Housing - 91.420, 91.220(h) ................................................................................................ 37 AP-65 Homeless and Other Special Needs Activities - 91.420, 91.220(i) ................................................. 38 AP-75 Barriers to affordable housing -91.420, 91.220(j) ........................................................................... 41 AP-85 Other Actions - 91.420, 91.220(k) ................................................................................................... 45 AP-90 Program Specific Requirements - 91.420, 91.220(l)(1,2,4) ............................................................ 49 15 HC 05-28-2026 15 of 72 AP-05 Executive Summary - 91.200(c), 91.220(b) Introduction The City of Cupertino (City) receives funding from the U.S. Department of Housing and Urban Development (HUD) for housing and community development programs each year. To utilize these Federal funds, the City must prepare and submit a five-year report, the Consolidated Plan (Con Plan). The Consolidated Plan identifies Cupertino’s needs, priorities, goals, and strategies in how Federal funds will be allocated and used for housing and community development activities over a five-year period. The Annual Action Plan (AAP) is included and submitted with the Consolidated Plan. The Fiscal Year (FY) 2026-2027 Annual Action Plan contains the City’s one-year plan to carry out housing and community development activities using Federal funds. The 2026-2027 Annual Action Plan covers the second year included in the City’s 2025-2030 Consolidated Plan. All activities in the FY 2026-27 AAP are based on current identified priorities and are intended to benefit extremely low-, low-, and moderate-income households. This Annual Action Plan will cover the timeframe of July 1, 2026, through June 30, 2027. The City of Cupertino estimates receiving $322,534 Community Development Block Grant (CDBG) funds and $7,944 in Program Income (PI) for this specific year. The City is also a participant in the County of Santa Clara’s HOME Investment Partnerships Program (HOME) Consortium. The County of Santa Clara administers these HOME funds; thus, the City will not report on HOME fund activities. The Housing Division of the Community Development Department is the lead agency and submits all HUD-required reports for CDBG funds. Summarize the objectives and outcomes identified in the Plan. This could be a restatement of items, or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis, or the strategic plan. Per 24 Code of Federal Regulations (CFR) 91.215 of HUD regulations, the City of Cupertino has organized its priority needs through housing and market analysis, citizen participation, and availability of resources to address community needs. Through these elements, providing affordable housing is considered a high priority. Preventing and assisting individuals experiencing homelessness is also considered a high priority. The top non-housing priorities identified include community services and public infrastructure/facilities. The Annual Action Plan reflects five overall goals, which were identified through the Consolidated Plan: 1. Increase the supply and condition of affordable rental housing for households with incomes ranging from 0-80% AMI. 2. Respond to homelessness and risk of homelessness through housing stabilization, supportive services, mental health services, and economic resiliency programs. 16 HC 05-28-2026 16 of 72 3. Invest in infrastructure and public facility improvements that prioritize safety, accessibility, and community building. 4. Invest in projects that increase opportunities for workforce development. 5. Address and promote housing stability through bolstering case management and navigation of services including legal assistance. In addition to CDBG funds, the City has access to a variety of Federal, state, and local resources to leverage to achieve its housing and community development priorities. During the five-year period, the City expects to receive or have available approximately $1,803,262 in CDBG funds, $4,133,200 in Below Market Rate (BMR) Affordable Housing Funds (AHF), and $625,000 in General Fund Human Services Grant (HSG). The City will use these funds for planned activities that align with the goals and priorities set forth in the Consolidated Plan and Annual Action Plan. Evaluation of past performance As the lead agency, the City of Cupertino is responsible for ensuring compliance and prepares the Consolidated Annual Performance and Evaluation Report (CAPER) which outlines how the City funded activities and met goals identified in the respective Annual Action Plan. The City has made great strides in achieving its goals to serve the community. In PY (HUD Program Year) 2025, the City achieved the following accomplishments: • Assisted 183 individuals through the West Valley Community Services (WVCS) Haven to Home Program, Senior Adults Legal Assistance (SALA) Legal Assistance to Elders program, Catholic Charities Long Term Care Ombudsman Program, and Maitri MTH- Direct Client Services to provide services to low- to moderate-income families, seniors, victims of domestic violence, and individuals with disabilities. • Assisted 100 beneficiaries through the WVCS Community Access to Resources and Education (CARE) Program to prevent homelessness. • Provided fair housing assistance, tenant-landlord counseling, and dispute resolution services to 77 individuals through Project Sentinel. • Assisted 14 elderly and disabled seniors through the Live Oak Adult Day Care Program. • Assisted 7 qualified homeowners by making health and safety repairs to their homes through Rebuilding Together Silicon Valley’s (RTSV) Homeowner Rehabilitation Program. The City recognizes that the evaluation of past performance is critical to ensuring that the City and its subrecipients are implementing activities effectively, and that those activities align with the City’s overall strategies and goals as outlined in the 2025-2030 Consolidated Plan. The City evaluates subrecipients on a quarterly basis to ensure outcomes are aligned with the City’s goals and priorities. 17 HC 05-28-2026 17 of 72 Summary of Citizen Participation Process and consultation process. Summary from citizen participation section of plan. Residents, local agencies, and regional organizations were encouraged to provide input and participate in the development of the FY 2026-27 Annual Action Plan. Interested parties had opportunities to comment by May 28, 2026. Per the City’s Citizen Participation Plan, the City provided a 30-day public commenting period which began on April 27, 2026, and ended on May 28, 2026. A public hearing was held on March 26, 2026, when the Housing Commission met to make their funding allocation recommendations, and again on May 28, 2026 when the Housing Commission met to approve the FY 26-27 AAP. On April 21, 2026, City Council approved the funding allocation recommendations at a public hearing. The City published public notices in the local newspaper, the Cupertino Courier, to notify the public of these comment opportunities. The draft AAP was available on the City’s Housing webpage for review. Summary of public comments No comments were received. Summary of comments or views not accepted and the reasons for not accepting them No comments were received. Summary The City of Cupertino aims to support Cupertino residents by providing fair and decent housing, livable environment, and expand economic development opportunities for individuals of low- and moderate-income through local, regional, and federal funds. The City ensures all activities to achieve the listed goals are consistent with the Consolidated Plan and are compliant with federal regulations. 18 HC 05-28-2026 18 of 72 PR-05 Lead & Responsible Agencies - 91.200(b) Agency/entity responsible for preparing/administering the Consolidated Plan The following are the agencies/entities responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source. Table 1. Responsible Agency CDBG Administrator Cupertino City of Cupertino, Community Development Narrative The Housing Division of the Community Development Department is the lead agency and is responsible for the City of Cupertino’s CDBG entitlement program. Duties include implementation of grants, administration of funded activities, and preparation of required reports. The City joined the County of Santa Clara HOME Consortium in 2015, and the County is the lead agency for the HOME funds. As a part of the Consolidated Plan process for 2025-2030, the City collaborated with the County of Santa Clara(County) as the Urban County representing the Cities of Campbell, Los Altos, Los Altos Hills, Los Gatos, Monte Sereno, Morgan Hill, and Saratoga; the Cities of Gilroy, Mountain View, Palo Alto, Sunnyvale, San José, and Santa Clara; and the Santa Clara County Housing Authority (SCCHA) to identify and prioritize housing and community development needs across the region, and to develop strategies to meet those needs. The FY 26-27 Annual Action Plan represents the second year of CDBG funding for the 2025-2030 Consolidated Plan. Consolidated Plan Public Contact Information Nicky Vu, Senior Housing Coordinator Community Development Department City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 Email: NickyV@cupertino.gov Phone: (408) 777-1347 19 HC 05-28-2026 19 of 72 AP-10 Consultation - 91.100, 91.200(b), 91.215(l) Introduction The Annual Action Plan is a one-year plan which describes the eligible programs, projects, and activities to be undertaken with funds expected during FY 26-27 and their relationship to the priority housing, homeless and community development needs outlined in the 2025-2030 Consolidated Plan. The City of Cupertino consulted with a variety of organizations and agencies on a local and regional level to prepare the Annual Action Plan. Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health, and service agencies (91.215(l)). During the development of the Annual Action Plans and as a general practice, the City coordinates with a variety of housing, public, and mental health agencies and service providers to discuss community needs. These discussions allow entities to network and learn more about one another’s services and programs. Moreover, their collective feedback is especially valuable in gathering information and shaping priorities for this Annual Plan as it relates to special needs populations, general health, and mental health services in the City and County. In addition, the City participates in the County’s quarterly CDBG Coordinator’s Group meetings, in which entitlement jurisdictions throughout the region gather to discuss existing CDBG needs and proposed use of federal funds for the upcoming year. The City also participates in the County’s Regional Housing Working Group, which is a forum for entitlement and non-entitlement jurisdictions to develop coordinated responses to regional housing challenges. The City’s Housing Manager regularly monitors monthly Continuum of Care (CoC) meetings. The CoC is a broad group of stakeholders dedicated to ending and preventing homelessness in Santa Clara County. The key CoC responsibilities are ensuring community-wide implementation of efforts to end homelessness and ensuring programmatic and systemic effectiveness. City staff collaborates on project management coordination for projects funded by multiple jurisdictions. The City coordinates with public agencies that offer job training, life skills training, lead poisoning prevention and remediation, and other education programs. The City attends HOME Consortium and PLHA Consortium meetings between member jurisdictions for affordable housing projects. In addition to the actions listed above, the City will continue to participate in the annual Affordable Housing Week (April/May) activities such as partnering with nonprofit agencies to host a housing 20 HC 05-28-2026 20 of 72 fair to provide residents with access to developers, BMR managers, and housing agencies and programs. The City will also continue to leverage its BMR AHF to assist nonprofit affordable housing developers. Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness. The Santa Clara County Office of Supportive Housing (OSH) is the administrator of the regional CoC. The City continuously coordinates with the Santa Clara County CoC to end and prevent homelessness in the County. The CoC is a group comprising stakeholders throughout the County, including governmental agencies, homeless service and shelter providers, homeless persons, housing advocates, affordable housing developers, and various private parties, including businesses and foundations. The City takes part in the CoC, and the City’s Senior Housing Coordinator regularly monitors the CoC meetings. Members of the CoC meet monthly to plan CoC programs, identify gaps in homeless services, establish funding priorities, and pursue a systematic approach to addressing homelessness. City staff, as well as staff of other cities, meet and consult with the County’s CoC staff during the quarterly countywide CDBG Coordinator’s Group meetings, and communicate more frequently via email and/or phone on joint efforts. The CoC is governed by the CoC Board, which takes a system-change approach to preventing and ending homelessness. Destination: Home, a public-private partnership that is committed to collective impact strategies to end chronic homelessness, is the leadership board of the CoC. Destination: Home is the governing body for the CoC and is responsible for implementing by-laws and operational protocols of the CoC. Regional efforts of the CoC include the development of The Community Plan to End Homelessness, which identifies strategies to address the needs of homeless persons in the County, including chronically homeless individuals and families, families with children, veterans, and unaccompanied youth. The plan also addresses the needs of persons at imminent risk of homelessness. The CoC is now in the process of updating a new plan for the next five years and the City has been actively participating in these efforts. The CoC and multiple service providers and organizations that provide services to homeless persons and persons at imminent risk of homelessness were contacted by the City to attend the Annual Action Plan engagement meetings. Agencies included Abode Services, which administers Tenant-Based Rental Assistance; Destination: Home; and Life Moves, a shelter and homeless provider in San Jose, Sunnyvale, and Palo Alto. Describe consultation with the Continuum(s) of Care that serves the jurisdiction’s area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS 21 HC 05-28-2026 21 of 72 The City is not an ESG entitlement jurisdiction and therefore does not receive ESG funds. However, the City does administer federal grant programs that assist homeless and low-income families in Santa Clara County. The City also helps fund and conduct the Point in Time (PIT) count, the biennial regional collaborative effort to count and survey people experiencing homelessness. The latest count and survey was conducted in January 2025. The data from the 2025 County of Santa Clara PIT count (2025 County PIT) is used to plan, fund, and implement actions for reducing chronic homelessness and circumstances that bring about homelessness. The Santa Clara County Office of Supportive Services takes the role of Homeless Management Information System (HMIS) administration. The County, and its consultant Bitfocus, work jointly to operate and oversee HMIS. Both software and HMIS system administration are now provided by Bitfocus. Funding for HMIS in Santa Clara County comes from HUD, the County of Santa Clara, and the City of San José. The County’s HMIS is used by many City service providers across the region to record information and report outcomes. 22 HC 05-28-2026 22 of 72 Agencies, groups, organizations, and others who participated in the process and consultations Table 2. Agencies, groups, organizations who participated Abode Agency/Group/Organization Type What section of the Plan was addressed by Consultation? How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Stakeholder focus group https://abode.org/ Affirmed Housing Affordable housing Consultation? Needs Assessment Market Analysis outcomes of the consultation or areas for Stakeholder focus group https://affirmedhousing.com/completed/vela/ Alta Housing Affordable housing Consultation? Needs Assessment Market Analysis outcomes of the consultation or areas for Stakeholder focus group https://altahousing.org/ 23 HC 05-28-2026 23 of 72 4 Agency/Group/Organization Bay Area Legal Aid Agency/Group/Organization Type Fair housing and legal services What section of the Plan was addressed by Consultation? Needs Assessment How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for Stakeholder focus group https://baylegal.org/ BHSD The Harm Reduction Project County Government Needs Assessment outcomes of the consultation or areas for Stakeholder focus group The Q Corner, Behavioral Health Services Bill Wilson Center Services for Families and Children Needs Assessment outcomes of the consultation or areas for Stakeholder focus group https://www.billwilsoncenter.org/ Bridge Housing City Government (San Jose) / Housing Consultation? Needs Assessment Market Analysis outcomes of the consultation or areas for Stakeholder focus group Q&A for Original Bridge Housing Program | City of San José 24 HC 05-28-2026 24 of 72 8 Agency/Group/Organization CARAS Agency/Group/Organization Type County government What section of the Plan was addressed by Consultation? Needs Assessment How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for Stakeholder focus group Community Agency for Resources, Advocacy and Services (CARAS) | Overdose Prevention Resources | County of Santa Clara CASA Needs Assessment outcomes of the consultation or areas for Stakeholder focus group https://childadvocatessv.org/ Catholic Charities Faith based supportive services Needs Assessment outcomes of the consultation or areas for Stakeholder focus group https://www.ccscc.org/?locale=en City of Los Altos City Government Needs Assessment Market Analysis outcomes of the consultation or areas for Stakeholder focus group 25 HC 05-28-2026 25 of 72 Website https://www.losaltosca.gov/ 12 Agency/Group/Organization City Team Agency/Group/Organization Type Homelessness Services What section of the Plan was addressed by Consultation? Needs Assessment How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for Stakeholder focus group https://www.cityteam.org/ Destination Home Homeless prevention Needs Assessment outcomes of the consultation or areas for Stakeholder focus group https://destinationhomesv.org/ Downtown Streets Team Homeless prevention Needs Assessment outcomes of the consultation or areas for Stakeholder focus group https://www.streetsteam.org/ Eden Housing Affordable housing Needs Assessment Market Analysis outcomes of the consultation or areas for Stakeholder focus group 26 HC 05-28-2026 26 of 72 Website https://edenhousing.org/ 16 Agency/Group/Organization Golden State Manufactured Homes Owners League Agency/Group/Organization Type Nonprofit advocacy What section of the Plan was addressed by Consultation? Needs Assessment Market Analysis How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for Stakeholder focus group https://www.gsmol.org/ Housing Trust Silicon Valley CDFI Needs Assessment Market Analysis outcomes of the consultation or areas for Stakeholder focus group https://housingtrustsv.org/ Jamboree Housing Affordable housing outcomes of the consultation or areas for Stakeholder focus group https://www.jamboreehousing.com/ Lived Experience Advisory Board Needs Assessment outcomes of the consultation or areas for Stakeholder focus group 27 HC 05-28-2026 27 of 72 Website 20 Agency/Group/Organization Life Moves Agency/Group/Organization Type Supportive Housing What section of the Plan was addressed by Consultation? Needs Assessment How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for Stakeholder focus group https://www.lifemoves.org/ Mountain View Chamber of Commerce Civic Leadership Market Analysis outcomes of the consultation or areas for Individual stakeholder interview https://www.chambermv.org/ Next Door Solutions to Domestic Violence Domestic Violence Survivor Resources Needs Assessment outcomes of the consultation or areas for Stakeholder focus group https://www.nextdoorsolutions.org/ Path Ventures Homelessness services Needs Assessment Market Analysis outcomes of the consultation or areas for Stakeholder focus group 28 HC 05-28-2026 28 of 72 Website https://epath.org/path-ventures/ 24 Agency/Group/Organization Project Sentinel Agency/Group/Organization Type Fair Housing Legal Services What section of the Plan was addressed by Consultation? Needs Assessment How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for Stakeholder focus group https://www.housing.org/ Rebuilding Together Peninsula & Silicon Valley Home Rehabilitation Needs Assessment outcomes of the consultation or areas for Stakeholder focus group https://rebuildingtogetherpeninsula.org/, https://rebuildingtogethersv.org/ Resources for Community Development Affordable housing Needs Assessment Market Analysis outcomes of the consultation or areas for Stakeholder focus group https://rcdhousing.org/ San Andreas Regional Center Supportive Services for Residents with Disabilities Needs Assessment Stakeholder focus group 29 HC 05-28-2026 29 of 72 improved coordination? Website https://www.sanandreasregional.org/ 28 Agency/Group/Organization Santa Clara County Housing Authority Agency/Group/Organization Type Public housing authority What section of the Plan was addressed by Consultation? Needs Assessment Market Analysis How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for Stakeholder focus group https://www.scchousingauthority.org/ Satellite Affordable Housing Associates Affordable housing Needs Assessment Market Analysis outcomes of the consultation or areas for Stakeholder focus group https://www.sahahomes.org/ Senior Adults Legal Assistance Fair Housing Legal Services Needs Assessment outcomes of the consultation or areas for Stakeholder focus group https://www.mightycause.com/organization/Senior -Adults-Legal-Assistance Silicon Valley Independent Living Center Services for people with disabilities Needs Assessment Market Analysis Stakeholder focus group 30 HC 05-28-2026 30 of 72 outcomes of the consultation or areas for improved coordination? Website https://svilc.org/ 32 Agency/Group/Organization SOMOS Mayfair Agency/Group/Organization Type Community Advocacy / Families What section of the Plan was addressed by Consultation? Needs Assessment How was the Agency/Group/ Organization consulted and what are the anticipated outcomes of the consultation or areas for Stakeholder focus group https://www.somosmayfair.org/ Sourcewise Services for older adults and people with disabilities Needs Assessment Market Analysis outcomes of the consultation or areas for Stakeholder focus group https://mysourcewise.com/ United Way Bay Area Supportive services Needs Assessment outcomes of the consultation or areas for Stakeholder focus group https://uwba.org/ Upwards Childcare services Needs Assessment 31 HC 05-28-2026 31 of 72 Identify any Agency Types not consulted and provide rationale for not consulting Not applicable. No agency types were intentionally left out of the consultation process. outcomes of the consultation or areas for Stakeholder focus group https://upwards.com/ Vista Center for Blind and Visually Impaired Services for people with disabilities Needs Assessment Market Analysis outcomes of the consultation or areas for Stakeholder focus group https://vistacenter.org/ YWCA Golden Gate Silicon Valley Supportive services for domestic violence survivors Needs Assessment outcomes of the consultation or areas for Stakeholder focus group https://yourywca.org/ 32 HC 05-28-2026 32 of 72 Other local/regional/state/federal planning efforts considered when preparing the Plan Table 3. Other local / regional / federal planning efforts Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Continuum of Care (Community Plan to End Homelessness in Santa Clara County 2020-2025) Santa Clara County Continuum of Care Addresses issues pertaining to homelessness through provision of social services such as food-related assistance, legal services, and employment training opportunities. City of Cupertino General Plan Housing Element, 2023- 2031 City of Cupertino Serves as a policy guide to evaluate existing and future housing needs, i.e., determines whether housing availability meets the needs of the population. Regional Housing Needs Assessment (RHNA) for the Santa Clara County Association of Bay Area Governments (ABAG) Analyzes total regional housing needs, i.e., determines number of units needed to be built per income category. Community Plan to End Homelessness in Santa Clara County Destination: Home Creates a community-wide road map that identifies specific homeless populations in the County and strategies to address the needs of these populations. Santa Clara County Housing Authority (SCCHA) Moving to Work Annual Plan Santa Clara County Housing Authority Addresses housing authority updates and strategies pertaining to public housing and vouchers. Narrative The City collaborated with six entitlement jurisdictions which included City of Gilroy, Mountain View, Palo Alto, San Jose, Santa Clara, and Sunnyvale to conduct public and community outreach for the 2025-2030 Consolidated Plan. The City also coordinated with a variety of public agencies gathering information on a local and regional basis. With their input and market analysis, the City identified needs and priorities that closely aligned with the community needs and priorities. These components are reflected in the FY 26-27 Annual Action Plan. 33 HC 05-28-2026 33 of 72 AP-12 Participation - 91.401, 91.105, 91.200(c) Summary of citizen participation process/Efforts made to broaden citizen participation. Summarize citizen participation process and how it impacted goal setting. The City of Cupertino provided ample opportunities for participation throughout the Action Plan process. There was public hearings held on March 26, 2026, and on May 28, 2026, by the City of Cupertino Housing Commission to review applications and approve the draft Action Plan, respectively. The City of Cupertino City Council held a public hearing on April 21, 2026 to approve funding allocations and execute respective contracts. In addition, the City provided a 30- day public review and commenting period from April 27, through May 28, 2026. The City published notifications of the upcoming public hearings and 30-day public review period in the Cupertino Courier, and City’s Housing webpage. The Plan was posted on the City website and is available at www.cupertino.org/housing. 34 HC 05-28-2026 34 of 72 Citizen Participation Outreach Table 4. Citizen Participation Outreach Order Outreach Outreach attendance of comments received comments not accepted and reasons applicable) 1 Public Hearing Non- targeted/broad community on March 26, 2026, to review the FY 2026-27 grant applications and make funding recommendations. No comments were received. 2 Newspaper Ad Non- targeted/broad community the public of the City's scheduled public meetings and hearings on the Action Plan and notifying the public of the opening public comment period for the draft Action Plan. The public comment period opened on April 27, 2026 and closed No comments were received. Website Non- The draft Action Plan was posted on the City’s Housing website on April 27. N/A Community Development Block Grant Program | City of Cupertino, CA 35 HC 05-28-2026 35 of 72 4 Public Meeting Non- targeted/broad community 21, 2026, to approve the FY 2026-2027 funding allocations. No comments were received. Public Hearing Non- The Housing Commission met on May 28, 2026, to approve FY 2026-2027 Annual Action Plan. N/A 36 HC 05-28-2026 36 of 72 AP-15 Expected Resources - 91.420(b), 91.220(c)(1,2) Introduction The City of Cupertino anticipates receiving $322,534 in CDBG entitlement funds with an additional $7,944 in program income. The City also has $50,000 of prior year unexpended funds, which makes a total of $380,478 of CDBG funds available for allocation in FY 2026-27. Like other entitlement jurisdictions, the City faces the challenge in addressing community needs with the fluctuating Federal resources. It is important to note that the funds granted are not sufficient to overcome barriers and address low- and moderate-income individual’s needs. However, the City continues to leverage local, state, and Federal funds to provide quality support and services to Cupertino residents. The table below illustrates the Federal and local funds that will be allocated for housing and community development needs in FY 26- 27. 37 HC 05-28-2026 37 of 72 Anticipated Resources Table 6 - Expected Resources Funds Amount Available Remainder of ConPlan Allocation: $ Income: $ Resources: $ $ CDBG Public - federal Acquisition Admin and Planning Economic Development Housing Public Improvements Public Services $322,534 $7,944.00 $50,000 $380,478 $0 used for the rehabilitation and upgrading of low-income household units, improvements in low- income neighborhoods and for affordable housing, and public services that benefit low income and special needs Other: BMR Affordable Housing Fund Public - local Other: Affordable Housing, Fair Housing $58,974 $0 $0 $58,974 $0 landlord-tenant counseling and dispute resolution services through the nonprofit Project Sentinel. Construction of two new affordable housing projects at Mary Ave and Explain how federal funds will leverage those additional resources (private, state, and local funds), including a description of how matching requirements will be satisfied There are additional federal grant programs the City can leverage to fund community development activities and increase the project efficiencies and benefits from economies of scale. These programs include: 38 HC 05-28-2026 38 of 72 • Section 8 Housing Choice Voucher Program; • Section 202; • Section 811; and • Affordable Housing Program (AHP) through the Federal Home Loan Bank. These programs are provided to SCCHA and affordable housing developers, not to the City. Entitlement Funds The City will utilize CDBG entitlement monies to serve its local community through housing and community development activities. In addition, the City joined the Santa Clara County’s HOME Consortium in 2015 to further maximize federal financial resources. The HOME Consortium is a collaborative effort to fund eligible housing projects among City of Cupertino, Gilroy, Palo Alto, and the Urban County. Beginning in FY 2015-2016, interested affordable housing developers were eligible to apply through an annual RFP process to help subsidize affordable housing construction costs in Cupertino. The City provides 25 percent matching funds when the City receives HOME dollars through the HOME consortium. Mary Avenue Villas is an extremely low-income affordable housing rental project, with a set aside for units for persons with developmental disabilities. This project was partly funded through the HOME Consortium in 2026, and the City provided the required matching funds. As in the past, the City will continue to reach out to developers to provide additional information on the HOME Consortium and available funding. State Housing and Community Development Sources The City has also awarded $908,683 in Permanent Local Housing Allocation (PLHA) funds from the State of California to the Mary Avenue Villas project. The developer, Charities Housing, will be utilizing these funds to cover the predevelopment costs associated with the project. This is an eligible activity allowed by State regulations. If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan The City has committed through an executed Development, Disposition, and Acquisition agreement with Charities Housing to sell public land for the development of the Mary Avenue Villas for $1. The City continues to make land available through its zoning to 39 HC 05-28-2026 39 of 72 facilitate development of low-income housing through its 2023-2031 Housing Element which has identified approximately 62 properties that would be able to accommodate future housing. In 2026, further studies to make more sites available to further meet RHNA goals will take place at future public meetings. More information can be found here: Engage Cupertino Housing Element. Discussion Please see discuss above. AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3)&(e) Goals Summary Information Table 7. Goal Summary Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 1 Homeowner Rehabilitation 2026 2027 Affordable Housing Citywide Affordable Housing CDBG: $107,500 Rehabilitated – 7 housing 2 Affordable Rental Unit Construction 2026 2027 Affordable Housing Citywide Affordable Housing $666,880 Rental Units Constructed – 249 housing units 3 Community Development 2026 2027 Citywide Affordable Housing 4 Frail Elderly/Elderly Services 2026 2027 Community Development Non-Homeless Citywide Community Services CDBG: $15,000 HSG: $29,000 Public Service Activities Other Than Low/Moderate- Income Housing Benefit – 59 persons 5 Services for Low-Income Families and Homeless Populations 2026 2027 Homeless Non-Housing Community Development Special Needs Citywide Prevent and Assist Those Experiencing Homelessness/Community Services $33,300 HSG: $93,700 County: $25,000 Homelessness Prevention Public service activities for low/moderate-income housing benefit – 228 persons 40 HC 05-28-2026 40 of 72 Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator BMR AHF: $58,974 6 Planning and Administration 2026 2027 Not Applicable Not Applicable Not Applicable CDBG: $64,500 Not Applicable Goal Descriptions The Consolidated Plan goals below represent high priority needs for the City of Cupertino and serve as the basis for the strategic actions the City will use to meet these needs. The goals, listed in no order, are: Table 8. Goal Descriptions 1 Goal Name Homeowner Rehabilitation Goal Description Make critical home repairs for lower income and disabled resident homeowners who could not otherwise afford to make critical repairs in their homes. Repairs/rehabilitation is for critical health and safety issues and/or the addition of accessible features for disabled and/or elderly homeowners who may otherwise not be able to stay in their homes. 2 Goal Name Affordable Rental Unit Construction Goal Description Construct affordable rental housing units for extremely low- and low-income residents. The City will commit funding to one affordable housing projects in FY 26-27, however construction is expected to take place throughout the 2025-2030 Consolidated Plan period. Upon completion 249 rental units are expected to be constructed. 3 Goal Name Community Development Goal Description Facility upgrades to bathrooms and kitchens in low-income rental units at the Vista Village affordable housing apartments. 4 Goal Name Frail Elderly/Elderly Services Goal Description Provide services to frail elderly, elderly, and disabled residents. Supportive services may include activities geared to maximize the social experience and mental stimulation of elderly clients, and to improve/sustain their mental and physical function and their quality of life or legal assistance. 5 Goal Name Services for Low-Income Families and Homeless Populations Goal Description Provide supportive services for low-income families and homeless populations. Provide landlord/tenant counseling, and dispute resolution services activities to LMI residents. 6 Goal Name Planning and Administration 41 HC 05-28-2026 41 of 72 Goal Description General administration of the CDBG program, including all planning and reporting activities. Estimate the number of extremely low-income, low-income, and moderate-income families to whom the jurisdiction will provide affordable housing as defined by HOME 91.215(b) Through the CDBG program, the City will fund activities that rehabilitate seven affordable housing ownership units and provide upgrades to three affordable housing renter units occupied by low- and moderate-income households (all households will be at 80% AMI or less). 42 HC 05-28-2026 42 of 72 AP-35 Projects - 91.420, 91.220(d) Introduction The City of Cupertino anticipates receiving $322,534 in CDBG entitlement funds with an additional $7,944 in program income. The City also has $50,000 of prior year unexpended funds, which makes a total of $380,478 of CDBG funds available for allocation in FY 2026-27. The activities funded through BMR AHF and General Fund HSG will not be reported in IDIS, as these are private and local funds utilized to maximize federal funds. The City will accurately adjust each activity listed below as funding sources are made available. Table 9 – Project Information # Project Name 1 Homeowner Rehabilitation 2 Affordable Rental Unit Construction 3 Community Development 4 Frail Elderly/Elderly Services 5 Services for Low-Income Families and Homeless Populations 6 Planning and Administration Describe the reasons for allocation priorities and any obstacles to addressing underserved needs This Annual Action Plan was developed based on the needs and priorities of the 2025-2030 Con Plan, analyzing data from HUD to identify needs of priorities. American Community Survey, and other sources and soliciting feedback from community members and local stakeholders. The City awards CDBG funds to organizations to provide public services and housing for low-income and special needs households. HUD requires that 70 percent of all CDBG funds be spent on activities that would benefit low- to moderate income (LMI) households, which are those making 0-80% of AMI. The City allocates its CDBG funds to projects and programs that will primarily benefit 0-50% AMI households, the homeless, and special needs populations. 43 HC 05-28-2026 43 of 72 AP-38 Project Summary Not applicable Goals Supported Affordable Housing Rehabilitation Needs Addressed Affordable Housing Funding CDBG: $107,500 Description otherwise afford to make critical repairs in their homes, resulting in health and safety issues. Grants may include funding for the addition of accessible features for disabled and/or elderly homeowners who may otherwise not be able to stay in their homes. Estimate the number and type of families that will benefit from the proposed activities 7 housing units will be rehabilitated. Location Description Citywide Planned Activities See above description. 2 Project Name Affordable Rental Unit Construction Target Area Not applicable Goals Supported Affordable Rental Unit Construction Needs Addressed Affordable Housing Funding BMR AHF: $666,880 Description The City received one application for affordable 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, 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. This project will be committed funding in FY26-27, however construction is expected to take place throughout the 2025- 2030 Consolidated Plan period. $666,880 in BMR AHF funds will be awarded to Eden Housing – Wolf Rd 44 HC 05-28-2026 44 of 72 Estimate the number and type of families that will benefit from the proposed activities 249 housing units will be constructed Location Description Wolf Rd (parcel currently vacant with no address) Planned Activities See above description. 3 Project Name Community Development Target Area Goals Supported Needs Addressed Funding Description at the Vista Village Apartments. Estimate the number and type of families that will benefit from the proposed activities 3 housing units will be upgraded 10114 Vista Drive, Cupertino, CA 95014 See above description. Target Area Not applicable Goals Supported Frail Elderly/Elderly Services Needs Addressed Non-housing Community Services Funding CDBG: $15,000 HSG: $29,000 Description Live Oak Adult Services will provide services for 15 frail elderly and elderly disabled residents who otherwise may have to be institutionalized. Supportive services to maximize the social experience and mental stimulation of elderly clients, and to improve/sustain their mental and physical function and their quality of life through exercise, music, nutritious meals, visual arts, music and games and puzzles. Caregiver support workshops are also available. Catholic Charities of Santa Clara will provide ombudsman services for 24 elderly households to investigate elder abuse in long term care facilities. 45 HC 05-28-2026 45 of 72 Senior Adults Legal Assistance will provide legal services to 20 low-income elderly households. Estimate the number and type of families that will benefit from the proposed activities 59 persons will be served. Location Description Citywide (20920 McClellan Road, Cupertino) Planned Activities See above description. 5 Project Name Services for Low-Income Families and Homeless Populations Target Area Not applicable Goals Supported Services for Low-Income Families and Homeless Populations Needs Addressed Prevent and Assist Those Experiencing Homelessness and Non-housing Community Services Funding CDBG: $33,300 HSG: $93,700 County: $25,000 BMR AHF: $58,974 Description The WVCS CARE program will provide services for 100 low-income, and homeless families and individuals. The program connects clients with community resources, making services easily available and accessible, and collaborates with them on capacity building. The main objectives of CARE are to encourage more stable and sustainable solutions that foster self-sufficiency instead of dependency. The WVCS Haven to Home program will provide services for 80 low-income and homeless households with assistance through the homeless prevention program and housing assistance case management. The Maitri transitional housing program will provide shelter for 7 domestic violence survivors. Project Sentinel will provide landlord/tenant counseling and dispute resolution services activities to 41 LMI residents. Estimate the number and type of families that will benefit from the proposed activities 228 persons will be served. Location Description Citywide Planned Activities See above description. 6 Project Name Planning and Administration Target Area Not applicable Goals Supported Not applicable 46 HC 05-28-2026 46 of 72 Needs Addressed Not applicable Funding $64,500 Description Administer the administrative costs for the overall management, coordination, and evaluation of the CDBG program, and the project delivery costs associated with bringing projects to completion. Estimate the number and type of families that will benefit from the proposed activities Not applicable. Location Description Citywide Planned Activities See description above. 47 HC 05-28-2026 47 of 72 AP-50 Geographic Distribution - 91.420, 91.220(f) Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed. The City allocates CDBG public service funds to benefit LMI households throughout the City which will not require the use of the target area as they will service LMI limited clientele but will use CDBG target areas as a factor to determine priority neighborhoods for public infrastructure/facility improvements along with the nature of improvements to assist low-income households. Cupertino is an exception grantee and therefore has a lower threshold at 23.08%. Geographic Distribution Table 10. Geographic Distribution Citywide 100% CDBG Target Areas 0% Rationale for the priorities for allocating investments geographically The City allocates CDBG funds citywide to benefit all LMI households regardless of location for public services. However, public infrastructure/facility upgrades should be used either in: the CDBG Target Area, for projects which have an LMI housing benefit, or for projects which have LMI limited clientele. Discussion See above. 48 HC 05-28-2026 48 of 72 AP-55 Affordable Housing - 91.420, 91.220(g) Introduction As discussed above, the Cupertino 2025-2030 Con Plan identifies Affordable Housing as a high priority need for the City, particularly availability of affordable housing for households earning 0%-30% AMI. The City plans to accomplish this through allocating funding for three programs: Homeowner Rehabilitation, Community Development, and Affordable Rental Unit Construction. These projects are described above. Table 11 - One Year Goals for Affordable Housing by Support Requirement Homeless 0 Non-Homeless 10 Special-Needs 0 Table 12 - One Year Goals for Affordable Housing by Support Type Rental Assistance 0 The Production of New Units 0 Rehab of Existing Units 10 Acquisition of Existing Units 0 Discussion The City will fund affordable housing activities and projects to maintain the City’s affordable housing stock by collaborating with Rebuilding Together Silicon Valley (RTSV) and West Valley Community Services (WVCS). These agencies will assist low- and moderate-income seniors and households by providing rehabilitation, repair, and upgrading services. 49 HC 05-28-2026 49 of 72 AP-60 Public Housing - 91.420, 91.220(h) Introduction While residents of the City may use Housing Choice Vouchers (formerly Section 8), these programs are managed and administered by the public housing authority, Santa Clara County Housing Authority (SCCHA). The SCCHA administers a Housing Choice Voucher program, assisting around 17,000 households, manages four public housing units in the City of Santa Clara, and controls affordable rental properties throughout the County. Actions planned during the next year to address the needs of public housing Not applicable, there are no housing developments in the City. Actions to encourage public housing residents to become more involved in management and participate in homeownership The SCCHA encourages and actively seeks public participation from residents through their transparent policy-making process. The SCCHA also ensures to include two tenants as commissioners of the SCCHA board. If the PHA is designated as troubled, describe the way financial assistance will be provided or other assistance Not applicable. Discussion While the City does not operate any public housing, the City works closely with and supports the SCCHA. 50 HC 05-28-2026 50 of 72 AP-65 Homeless and Other Special Needs Activities - 91.420, 91.220(i) Introduction The 2025-2030 Consolidated Plan identifies reducing and ending homelessness as a high priority need and is committed to supporting activities that prevent and end homelessness. The Consolidated Plan identifies that 48 people are experiencing homelessness in the City and 9,903 persons are experiencing homelessness county-wide. The City participates in the County of Santa Clara Continuum of Care (CoC), which is administered by the County Office of Supportive Housing. The CoC has the primary responsibility to address homelessness regionally. Currently, the City supports efforts to end homelessness. The City funds programs that provide case management and short-term rental assistance to support homeless families transitioning to permanent housing, such as the WVCS Community Access to Resources and Education (CARE) program, programs which provide case management and homeless prevention interventions such as the WVCS Haven to Home program, programs which provide transitional housing to survivors of domestic violence such as the Maitri Transitional Housing program, and has three host sites of the Rotating Safe Car Park program. Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs The County OSH conducts routine outreach to the homeless persons living throughout Santa Clara County. On a biennial basis, the OSH conducts a Point in Time (PIT) count estimating the prevalence of homelessness in the jurisdictions within Santa Clara County, including the City. Through this process the volunteers outreach directly to persons experiencing homelessness to understand their background, situation, and needs. The purpose of the PIT count is to assess the status of homeless persons living within the County and use the findings to apply for funding for HUD to support housing services, including homeless services. Currently, the CoC receives approximately $26 million dollars annually in federal funding. The most recent PIT count took place in January 2025, and the new count is 101. Secondly, the CoC prepares a community plan focused on ending homelessness in Santa Clara County every five (5) years. The Plan developed through a series of community summits addressing specific homeless populations in the County and is based on extensive community engagement with the homeless populations. The City will take part in the development of the 2025- 2030 Community Plan to End Homelessness along with other jurisdictions in Santa Clara County throughout the ConPlan period. Addressing the emergency shelter and transitional housing needs of homeless persons There are no emergency shelters or transitional housing located in the City. However, on April 2, 51 HC 05-28-2026 51 of 72 2025 the City executed a Memorandum of Understanding that allowed the City to enter a joint study with other West Valley Cities to collectively study the need and feasibility of developing emergency shelter and transitional housing within the region. This study has been completed and further actions for implementation are currently being explored by neighboring West Valley cities. The City supports two programs that could be considered seasonal and special needs shelters: the Rotating Safe Car Park program, of which the City has three host sites, and the Maitri transitional housing program which provides shelter to survivors of domestic violence. Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again The City’s funding supports services that provide intensive case management for chronically homeless individuals with the goal of rapid re-housing, a program known as Haven to Home. Case management will be person-based, rather than provided through a shelter. Additionally, the City’s funds will support public services that address the supportive housing needs of very low-income and homeless individuals. The City funds programs that provide case management and short-term rental assistance to support homeless families transitioning to permanent housing, such as the WVCS Community Access to Resources and Education (CARE) program. Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs. There are existing services that the City’s funding will continue to support: • The Valley Homeless Healthcare Program (VHHP) is part of the Santa Clara Valley Medical Center and provides medical services to homeless individuals, including primary care and urgent care. VHHP also manages a Medical Respite program for homeless individuals discharged from hospitals as well as a Backpack Homeless Health Care Program for those in encampments. • The County’s Social Services Agency has expedited the review process of homeless households’ CalFresh applications so that they may receive benefits within three days. • The County’s Behavioral Health Services Department (BHS) has multiple programs to connect homeless individuals with housing or shelter assistance. BHS also treats those 52 HC 05-28-2026 52 of 72 going through behavioral health crises. • The County’s Reentry Resource Center (RRC) provides services to those who have been previously incarcerated and to individuals who are homeless upon release. Services include referrals to drug treatment, housing assistance, food assistance, counseling, and other benefits. • The County’s OSH mission is to increase the supply of housing and supportive housing that is affordable and available to extremely low income and /or special needs households. OSH supports the County mission of promoting a healthy, safe, and prosperous community by ending and preventing homelessness. • The City funds services to prevent homelessness programs which provide case management and homeless prevention interventions such as the WVCS Haven to Home program. Discussion The efforts and programs identified above address the City’s efforts as well as the City’s collaboration with regional organizations to assist individuals experiencing homelessness and other special needs. The City recognizes that homelessness is a complex issue and requires a collaborative effort of local agencies and public service agencies. The City will continue to support and look for different methods to assist in addressing homelessness. 53 HC 05-28-2026 53 of 72 AP-75 Barriers to affordable housing -91.420, 91.220(j) Introduction As part of the 2023-31 Housing Element update, the City conducted an analysis of both governmental and non-governmental constraints to the development of affordable housing and residential development. Common governmental constraints include: Land use controls; Building codes and their enforcement; Fees and exactions; and Permitting procedures. The analysis found that the City maintains development regulations that are consistent with State law and that do not pose undo constraints on the development of affordable housing. The City identified the following areas that may act as constraints to housing development: Residential Design Guidelines. Cupertino maintains a requirement for design review of multifamily residential projects. These design guidelines currently contain subjective design standards, which are inconsistent with State housing law. Development Fees. Total fees in Cupertino are on the higher end of Santa Clara County jurisdictions for all housing developments. Parking standards. The requirement for two parking spaces for studios and single-room occupancy units (SROs) in the R-3 Zoning District could be a constraint on the development of affordable housing. Other non-governmental constraints to housing development include: Land costs. Land costs are very high in Cupertino due to high demand and an extremely limited supply of available land. Construction costs. Key construction costs have risen nationally in conjunction with economic recovery and associated gains in the residential real estate market. Availability of financing. As a stable, affluent community, private housing mortgage financing is readily available in Cupertino. The Housing Element identified that there are no mortgage-deficient areas in the city and no identifiable underserved groups in need of financing assistance; Environmental hazards. Aside from risk of natural disasters, there are no significant wetland or environmental resource issues of concern that would constrain development in the urbanized areas designated for residential development in the city. Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the 54 HC 05-28-2026 54 of 72 return on residential investment. In its 2023-2031 Housing Element, the City identified the following goals, policies, and strategies to continue removing or ameliorating affordable housing barriers: Goal HE-1. An adequate supply of residential units for all economic segments o Policy HE-1.1. Provision of adequate capacity for new construction need. Designate sufficient land at appropriate densities to accommodate the City’s RHNA. o Policy HE-1.2. Housing Densities. Provide a full range of densities for ownership and rental housing. o Policy HE-1.3. Mixed-Use Development. Encourage mixed-use development near transportation facilities and employment centers. Goal HE-2. Housing is affordable for a diversity of Cupertino households. o Policy HE-2.1. Housing Mitigation. Ensure that all new developments, including market-rate residential developments, help mitigate project-related impacts on affordable housing needs. o Policy HE-2.2. Range of Housing Types. Encourage the development of diverse housing stock that provides a range of housing types. o Policy HE-2.3 Development of Affordable Housing and Housing for Persons with Special Needs. Make every reasonable effort to disperse affordable units throughout the community but not at the expense of undermining the fundamental goal of providing affordable units. Specific strategies to remove or ameliorate affordable housing barriers include: Strategy HE-1.3.1 Land Use Policy and Zoning Provisions. Amend development standards for housing as required to provide objective standards that are adequate and appropriate to facilitate a range of housing in the community. Strategy HE-1.3.3 New Residential Zoning Districts and Land Use Designations. Create a new R4 Zoning District that will align with the two new General Plan Land Use designations, High/Very High Density allowing 50.01 to 65 units per acre, and Very Hight Density allowing 65.01 to 80 units per acre. The City will create development standards that will allow the maximum density of this district to be achieved. Strategy HE-1.3.4 Development on Nonvacant Sites. Establish an outreach and coordination program to connect developers, builders, and owners of nonvacant sites. Strategy HE-1.3.5 Encourage Mixed-Use Projects and Residential in Commercial Zones. The City will incentivize development of residential units in mixed-use projects that include affordable units (at least 20%) by providing incentives. Strategy HE-1.3.6. The City will encourage the development of missing middle housing types that are affordable by design that can provide opportunities for housing that accommodate a diversity of needs. Strategy HE-1.3.9 Review Development Standards. Review and revise design and development standards and guidelines for multifamily housing. Provide flexibility in development standards to accommodate new models and approaches to providing housing. 55 HC 05-28-2026 55 of 72 Strategy HE-2.3.1 Support Affordable Housing Development. Work with housing developers to expand opportunities for affordable lower-income housing for special needs groups. Strategy HE-2.3.6 Surplus Properties for Housing and Faith-Based Housing. The City will partner with local developers or organizations to purchase surplus properties, infill lots, and other green fields within the city to use for the development of affordable housing. Strategy HE-2.3.7 Incentives for Affordable Housing Development. The City will continue to offer a range of incentives to facilitate the development of affordable housing. Strategy HE-2.3.9 Review Impact Fees. To ensure that impact fees are not a constraint on the development of housing, the City will review and revise impact fees by researching surrounding jurisdictions to determine other fee structures. Strategy HE-2.3.10 Extremely Low-Income Housing. The City will continue to encourage the development of adequate housing to meet the needs of these ELI households. Discussion The City has identified strategies to remove or ameliorate barriers to affordable housing in their 2023-2031 Housing Element, listed as above. Additionally, the City is addressing the barriers to affordable housing through the following programs and ordinances: Below Market Rate (BMR) Affordable Housing Fund (AHF) The City’s BMR AHF receives its revenue from the payment of housing mitigation fees from non- residential (office, retail, R&D, hotel and industrial) and residential development. The residential BMR program applies to new residential developments greater than one unit. Developments of one to four units are required to pay an in-lieu fee. Homeownership developments of five units or greater are required to designate 20 percent of the total number of units in an ownership development as affordable. Rental developments of five units or greater are required to designate 15 percent of the total number of units in a rental development as affordable. Developers must pay a housing mitigation fee to BMR AHF. For non-residential housing mitigation in the City, a fee is applied to new square footage of development. The fee is deposited in the City’s BMR AHF and used for the provision of affordable housing. The City Council adopted a new nexus study in 2026, that will reassess the housing mitigation fees developers pay to BMR AHF. HOME Investment Partnerships Program (HOME) The City joined the County’s HOME Consortium in 2015. HOME funds can be used to fund eligible affordable housing projects for acquisition, construction, and rehabilitation. Beginning in FY 2015, developers of affordable housing projects were eligible to competitively apply through an annual RFP process directly to the County for HOME funds to help subsidize affordable 56 HC 05-28-2026 56 of 72 housing projects in Cupertino. Permanent Local Housing Allocation (PLHA) The City joined the County’s PLHA Consortium in 2021. PLHA funds can be used to fund eligible affordable housing projects for acquisition, construction, and rehabilitation. Beginning in FY 2021, developers of affordable housing projects were eligible to competitively apply through an annual RFP process directly to the City for PLHA funds to help subsidize affordable housing projects in Cupertino. 57 HC 05-28-2026 57 of 72 AP-85 Other Actions - 91.420, 91.220(k) Introduction This section discusses the City’s other efforts in addressing the underserved needs, expanding, and preserving affordable housing, reducing lead-based paint hazards, and developing institutional structure for delivering housing and community development activities. Actions planned to address obstacles to meeting underserved needs The priority needs identified through the Con Plan are intended to serve underserved populations, including persons experiencing homelessness and special needs populations such as elderly persons and persons living with disability. To review these needs and subsequent goals in detail, see the projects summary in AP-30 of this Plan. The City of Cupertino’s Housing Element contains a goal for the city to adopt an implementation plan for addressing displacement due to rising rents and evictions by June 2026. The Housing Commission heard staff present policy options on December 8, 2025 and will be included in future City Work Plan for FY 26-29. The policy options and latest programs suggested for inclusion are as follows: 1. Tenant Legal Services 2. Eviction Protection 3. Rent Stabilization 4. Rent Mediation 5. Deposit/Fee Regulation Actions planned to foster and maintain affordable housing To address future affordable housing needs, the City maintains its own local Below Market Rate Affordable Housing Fund (BMR AHF). The City’s BMR AHF fund receives its revenue from the payment of housing mitigation fees from non-residential (office, retail, R&D, hotel and industrial) and residential development. The Housing Mitigation fee program acknowledges housing needs created by the development of non-residential and residential projects, and the fees collected are deposited in the City’s BMR AHF to be used for the provision of affordable housing. Each year the City allocates up to $75,000 from the BMR AHF to provide public service grants to public and human service agencies within the City limits, which is typically awarded to Project Sentinel for fair housing investigation, education, and tenant-landlord dispute resolution. Future actions include expanding the scope of this contract for additional education outreach and rent mediation services. Additionally, monies from this fund are planned to enact loans for the construction of the Mary Ave and Wolfe Rd affordable housing projects. As described above, the City is committed to rehabilitating affordable housing units owned by homeowners and rental units so that they can continue to provide safe and affordable housing for 58 HC 05-28-2026 58 of 72 low-income households. Aside from CDBG Actions, the City will contact property owners of market-rate developments which contain affordable housing units as part of the City’s inclusionary housing program to ensure that proper noticing is being sent to low-income tenants when the affordability restrictions of their units expire. If proper noticing has not been sent out at the 3-year, 12-month, and 6-month periods, staff has required these property owners to extend the affordability period of these units as injunctive relief. Aside from the Mary Avenue and Wolfe Rd affordable housing projects, which continue to be in progress with agreement execution and construction, the City continues to consult with affordable housing developers for future opportunities to create affordable housing within the City and will undertake several actions in 2026 to make available new sites for affordable housing for the 2023- 2031 Housing Element. Further, the City will continue its participation in County-wide efforts through the HOME Consortium, PLHA Consortium, and County OSH to provide affordable housing and supportive services. Actions planned to reduce lead-based paint hazards The City’s goal is to make certain that each tenant, landlord, and property owner is fully aware of the dangers, symptoms, and methods of testing, treatment, and prevention of lead-based paint poisoning. The City follows all applicable lead-based paint regulations, which primarily affect projects funded by the City and HUD. Actions planned to reduce the number of poverty-level families In a continuing effort to reduce poverty, the City will make it a priority to fund agencies that provide direct assistance to the homeless and those at risk of becoming homeless. In FY 26-27, the City will leverage additional General Fund HSG monies, and County funding when available to assist the following programs: • Long-Term Care Ombudsman – Catholic Charities of Santa Clara County administer this program. The agency assists seniors in long-term facilities with issues related to health, care, safety, and personal preferences. • MTH Direct Client Services - Maitri administers this program. The agency provides transitional housing services for victims of domestic violence and children. • Legal Assistance to Elders - Senior Adults Legal Assistance administers this program. The agency provides legal services to seniors, such as public benefits, long-term care, elder abuse, housing, consumer, incapacity planning, probate alternatives, and simple wills. • Haven to Home - West Valley Community Services administer this program. The agency provides supportive services and housing resources to individuals experiencing 59 HC 05-28-2026 59 of 72 homelessness and chronic homelessness. Additionally, the City will explore the option to expand the HSG program based on funding availabilities and the growing need for anti-displacement programs and homelessness prevention. The City is committed to reducing poverty and supports organizations within the region, including the following: • Santa Clara County Human Services, which helps clients develop a “welfare to work” plan and provides career advising, job placement, resume development, and interviewing skills to students. The Department of Human Services also serves homeless individuals with job training and housing; • The NOVA Workforce Development Board provides training and employment services to those residing in the Cities of Santa Clara, Cupertino, Los Altos, Milpitas, Mountain View, Palo Alto, and Sunnyvale. Many of its services and programs target disadvantaged youth and adult populations, who may have limited education and/or barriers to employment; • The SCCHA is a Moving to Work agency, which allows programs that focus on self- sufficiency and affordable housing; • Santa Clara Unified School District’s Adult Education Center offers a variety of courses and resources, including English as a second language, high school diploma and GED courses, career training, enrichment courses, exercise and wellness courses, parenting classes, an on-site preschool, and on-site CalWORKs office dedicated to working with students at the Adult Education Center. Actions planned to develop institutional structure This Plan will follow the institutional structure determined in the 2025-2030 Consolidated Plan, which includes private industry, nonprofit organizations, and public institutions. The City coordinates closely with the County OSH as a participant of the CoC and the SCCHA, both of which provide regional services that benefit residents of Cupertino. Actions planned to enhance coordination between public and private housing and social service agencies The County oversees the coordination between the City and the region-wide network of housing and community development partners. The City is committed to continuing to actively collaborate 60 HC 05-28-2026 60 of 72 with other local jurisdictions and service providers through sharing information and resources. Discussion Please see discussion above. 61 HC 05-28-2026 61 of 72 AP-90 Program Specific Requirements - 91.420, 91.220(l)(1,2,4) Introduction Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(l)(1) Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out. Table 13. Program Income 1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed $0 2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives Total Program Income $0 Other CDBG Requirements 1. The amount of urgent need activities 0 2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual 100% Discussion The City will attempt to meet an overall benefit of 70% for this Annual Action Plan, which will be for one year. 62 HC 05-28-2026 62 of 72 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) 63 HC 05-28-2026 63 of 72 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 64 HC 05-28-2026 64 of 72 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 65 HC 05-28-2026 65 of 72 CITY OF CUPERTINO Agenda Item Subject: Study session for strategies to meet affordable housing Regional Housing Needs Allocation (RHNA) goals of the 2023-2031 Housing Element. Receive presentation on the status of the City’s progress on meeting RHNA goals and suggest strategies for producing additional affordable housing. CITY OF CUPERTINO Printed on 5/22/2026Page 1 of 1 66 HC 05-28-2026 66 of 72 HOUSING COMMISSION STAFF REPORT May 28, 2026 Subject Study session for strategies to meet affordable housing Regional Housing Needs Allocation (RHNA) goals of the 2023-2031 Housing Element. Recommended Action Receive presentation on the status of the City’s progress on meeting RHNA goals and suggest strategies for producing additional affordable housing. Background Since 1969, the State of California has required all cities and counties to create long-range plans to anticipate and meet future affordable housing needs through land-use, funding, programs, and policies. This document must be adopted into each municipality’s General Plan, and is known as the Housing Element. Housing Elements are periodically updated when the State Department of Housing and Community Development (HCD) assigns each jurisdiction its fair share of housing to produce at varying income levels to ensure equitable and commensurate affordable housing is created to meet population and economic growth. This allocation is known as the Regional Housing Needs Allocation (RHNA). Each City’s RHNA share is divided into four categories for housing affordability: very low-income (below 50% Area Median Income (AMI)), low-income (50-80% AMI), moderate income (80-120% AMI) and above moderate income (above 120% AMI). To have a certified Housing Element, each local government must have enough land zoned to meet their assigned share of housing in each of the four categories. The City of Cupertino’s 2023-2031 Housing Element was certified by HCD on September 4, 2024. Government Code 65863 requires local governments to maintain adequate capacity to meet their RHNA obligations throughout the entire planning period. The total RHNA for Cupertino’s existing and future housing need is 4,588 housing units, at varying levels of affordability. Cupertino’s 2023-2031 Housing Element is expected to accommodate 1,193 very low-income units, 687 low-income units, 755 moderate-income units, and 1,953 above moderate-income units. Each Housing Element is required to compile an inventory of existing and potential housing sites (i.e., priority housing sites) based on General Plan land-use designation densities and zoning to assess if they can meet their RHNA. If projects on priority housing sites are developed at densities which do not result in the number of units anticipated 67 HC 05-28-2026 67 of 72 2 on the site by income category, the City is required to identify and make available new sites for replacement units within 180 days of approval. As of May 2026, the City of Cupertino has approved several housing projects both on sites not designated as Priority Housing Sites in the 6th Cycle Housing Element and on Priority Housing Sites in the 2023-2031 Housing Element. Despite approving zoning which allowed for higher density rental projects, developers have locked in lower density standards in place prior to HCD’s certification of the 6th Cycle Housing Element utilizing the SB330 provisions of state law for some of the Priority Housing Sites. The City’s Below Market Rate (BMR) Housing Program requires that rental projects provide 15% of their proposed units be made available to very low and low-income households and that ownership projects provide 20% of their proposed units to median and moderate-income households. Since several projects proposed townhome ownership units on some Priority Housing Sites where higher density rental development was anticipated, fewer overall units with different affordability levels have been approved. Additionally, an existing pipeline project with a large number of affordable units, the Vallco (Rise) SB35 project, resubmitted its planning application in December 2025 under new affordability standards permitted by SB 423. SB 423 modified Govt. Code Section 65913.4 (the state laws utilized by the Vallco project) by reducing the affordability requirements for the project to 20 percent (356 units). Discussion To ensure continued compliance with state law, the City is re-evaluating assumptions for the Housing Element Sites Inventory and updating the pipeline sites and Priority Housing Sites list to ensure adequate capacity to accommodate its RHNA. Staff will be evaluating whether density assumptions on existing Priority Housing Sites need to be revisited and whether some/all of the sites would benefit from additional upzoning to add capacity. After such evaluation, the next step would be considering adding additional Priority Housing Sites to the existing inventory. In addition to the HCD identified criteria for site selection, the following site selection strategy for additional Priority Housing Sites were presented to the Council in March 2026: Owner/Developer Interest Sites Since adoption of the 6th Cycle Housing Element, property owners and developers have approached the City with proposals for additional sites to be included for housing projects. Sites that have property-owner or developer interest are considered as having the highest feasibility of redevelopment by HCD and are generally the first priority for inclusion in the Sites Inventory for the selection process. Major Corridors The major corridors in a City are more suited for affordable development due to their access to infrastructure, transit accessibility and proximity to community resources. Increasing density in these areas aligns with state, regional, and local mandates to reduce greenhouse gas (GHG) emissions by integrating housing with transportation. Furthermore, new state laws now permit higher-density residential development along commercial corridors, regardless of whether the underlying land use designation or zoning allows residential development. Aligning the City’s 68 HC 05-28-2026 68 of 72 3 land use and zoning with these policies will further GHG and sustainability goals. To support these sustainability goals, staff focused on parcels along Stevens Creek Blvd, De Anza Blvd, Homestead Rd, and N. Wolfe Rd during the 6th Cycle Housing Element site selection, and will continue to prioritize sites along major corridors. Underperforming Commercial Sites Thus far in the 6th cycle, all housing proposals (on Priority Housing Sites or otherwise) have been on underperforming commercial sites. Examples include the Summerhill Homes I project (former Fontana’s, Staples and Pizza Hut), Harvest Properties/Stevens Creek Office Center (between Whole Foods and Target) and Dividend Homes (20045 – 20080 Stevens Creek Blvd). Common characteristic of these sites include building stock older than 20 years, single-story height, with an expansive at grade parking lot. Other Strategies: Minimum Density The City allows residential development on all sites except sites zoned for quasi-public uses. However, aside from the 6th Cycle Priority Housing Sites, none of the other sites that allow residential uses have a minimum density standard. As a result, developers have been proposing projects that are below the maximum density standards which produce 1) fewer overall units, including fewer affordable units and 2) housing types which are generally geared more toward for-sale single family sized units. Additionally, the City does not have enough land to upzone to continue to develop townhome style development at 20 du/acre. In order to accommodate the City’s lower income RHNA at this density, the City would need to upzone upwards of 1,000 acres. To advance affordable housing options, it may be advantageous to establish minimum density requirements, for all residential development along the major corridors. Adopting minimum density standards may guide proposals towards projects with smaller living areas, with units that would be affordable by design/rent relative to Area Median Income for Santa Clara County and potentially add units to the City’s BMR program at the lower income levels. Fiscal Impact None. California Environmental Quality Act This is a study session and is not a project subject to CEQA. Sustainability Impact No sustainability impact by this recommendation. Sustainability impacts will be further reviewed prior to any rezoning and/or annexations are approved by City Council. Next Steps The Planning Commission will evaluate potential Priority Housing sites and land use regulations necessary to implement Housing Element strategies at an upcoming meeting. Final adoption of the updated Housing Element will take place at a future meeting of the City Council within the next year. 69 HC 05-28-2026 69 of 72 4 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 – 2023-2031 Housing Element Approved Zoning Maps 70 HC 05-28-2026 70 of 72 EXHIBIT Z-2 71 HC 05-28-2026 71 of 72 Exhibit Z-3 72 HC 05-28-2026 72 of 72