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Home My WebLink AboutHC 08-14-2026 Youtube and Zoom TranscriptWEBVTT 1 00:00:04.370 --> 00:00:11.920 Quinlan Conf Room: Alright, go ahead. Okay, so it's, 5.35, August, 13, 2026. We have a quorum. 2 00:00:12.350 --> 00:00:15.429 Quinlan Conf Room: Special Meeting of the Housing Commission in session. 3 00:00:18.320 --> 00:00:20.370 Quinlan Conf Room: Do you want to do a roll call? 4 00:00:20.560 --> 00:00:26.100 Quinlan Conf Room: Commissioner Cunningham? Here. Commissioner Sripathi? Here. Vice Chair Jones? 5 00:00:26.400 --> 00:00:30.610 Quinlan Conf Room: Chair Narayan? Here. For the record, Vice Chair Jones is absent. 6 00:00:34.570 --> 00:00:35.950 Quinlan Conf Room: Okay. 7 00:00:39.470 --> 00:00:42.170 Quinlan Conf Room: First agenda item, approval of minutes. 8 00:00:43.950 --> 00:00:49.899 Quinlan Conf Room: Do we have a motion to approve the minutes from May 28th? 9 00:00:50.010 --> 00:00:57.049 Quinlan Conf Room: I will move that we approve the, minutes for May 28th, 2026. 10 00:00:57.460 --> 00:00:59.430 Quinlan Conf Room: And I can second that motion. 11 00:01:00.240 --> 00:01:02.210 Quinlan Conf Room: Okay, Commissioner Cunningham? 12 00:01:02.910 --> 00:01:08.820 Quinlan Conf Room: I, and I would say that they were very well done. There was no, you know, any problems at all. 13 00:01:09.020 --> 00:01:09.980 Quinlan Conf Room: Thank you. 14 00:01:10.140 --> 00:01:11.130 Quinlan Conf Room: for them. 15 00:01:11.460 --> 00:01:12.980 Quinlan Conf Room: Mission Sripathi? 16 00:01:13.890 --> 00:01:20.930 Quinlan Conf Room: I didn't attend the meeting, so… Oh, sorry. This is just approval minutes. Yeah, approval of the meeting. 17 00:01:21.310 --> 00:01:22.330 Quinlan Conf Room: Okay. 18 00:01:23.300 --> 00:01:27.930 Quinlan Conf Room: Turner in? Aye. The motion carries with Vice Chair Jokes absent. 19 00:01:32.720 --> 00:01:38.780 Quinlan Conf Room: Okay, there's no old business. 20 00:01:39.120 --> 00:01:43.399 Quinlan Conf Room: Building your business. The next item is the study session. 21 00:01:44.720 --> 00:01:47.400 Quinlan Conf Room: That's correct. And I can… 22 00:01:47.920 --> 00:01:56.720 Quinlan Conf Room: So, this staff presentation. Oh, I need to go to oral communications before we do this study session. Good call, yes. Oh, okay. Oh, yeah. 23 00:01:57.050 --> 00:01:59.149 Quinlan Conf Room: We don't have any speakers, Chair. 24 00:01:59.540 --> 00:02:04.259 Quinlan Conf Room: No speakers, anybody from public? No. No members. Okay, all right. 25 00:02:05.130 --> 00:02:09.600 Quinlan Conf Room: Okay, so then let's move on to the next item study session. 26 00:02:10.550 --> 00:02:17.409 Quinlan Conf Room: Awesome, and I can start the presentation. Now, you showed me… Oh, okay. Okay. 27 00:02:18.080 --> 00:02:30.000 Quinlan Conf Room: So, good evening, Chair and members of the Housing Commission. I'll be giving tonight's staff presentation. Just as a reminder, this is a special meeting. This was requested by the Housing Commission 28 00:02:30.000 --> 00:02:38.210 Quinlan Conf Room: when we were doing our annual work plan back in March, talked about how one of the agendized items later this year was going to be talking about 29 00:02:38.210 --> 00:02:50.019 Quinlan Conf Room: updating our MAR below market rate inclusionary housing requirement and fee related to this. Both of these things are, kind of, 30 00:02:50.230 --> 00:03:05.280 Quinlan Conf Room: set in the code as part of the Housing Mitigation Manual. It's a document, City Council passed that kind of governs our blue market rate, kind of production of housing, and how we collect fees. And it was requested that before we, you know, get into that meeting, what we update 31 00:03:05.680 --> 00:03:18.510 Quinlan Conf Room: of what we have. Let's first have a study session to understand what we currently have and how it currently works. The purpose of tonight's meeting is basically going to be purely educational. We're not making any, decisions tonight, but 32 00:03:18.510 --> 00:03:26.189 Quinlan Conf Room: We will open it for discussion later, so that commissioners can have their chance to ask any clarifying questions they want, and also just kind of discuss them with each other, what you think 33 00:03:26.290 --> 00:03:30.980 Quinlan Conf Room: What kind of changes maybe you think you want to see, right, amongst each other. 34 00:03:31.070 --> 00:03:46.719 Quinlan Conf Room: So, without further ado, let's get started. The Housing Mitigation Manual, also known as the Below Market Rate Housing Mitigation Program Procedural Manual, was adopted by City Council back in 1992. It's part of the General Plan. Way, way, way back then. 35 00:03:46.890 --> 00:03:58.910 Quinlan Conf Room: Yeah, the goal of this manual is to generate affordable housing through market rate development. This is the mitigation idea, right? It does this by two ways. 36 00:03:59.200 --> 00:04:07.150 Quinlan Conf Room: The first is called the Inclusionary Housing Requirement. This is the industry term we use for that, which is whenever there's a market rate development. 37 00:04:07.230 --> 00:04:23.999 Quinlan Conf Room: you know, this is privately owned, of course, by a for-profit, you know, entity. We require them to set aside a certain percentage of their units to be made affordable for the below-market rate program, right? That's… so it's occlusionary, included within the private development. 38 00:04:24.330 --> 00:04:42.079 Quinlan Conf Room: The other thing we do is that we have established the Below Market Rate Affordable Housing Fund through the manual, and it is, funded essentially entirely through fees collected on building permits. We're going to get into the structure of how those fees are calculated and collected as part of this presentation. 39 00:04:43.080 --> 00:04:45.079 Quinlan Conf Room: So first, let's start with 40 00:04:45.130 --> 00:05:03.429 Quinlan Conf Room: once this loads, the inclusionary housing requirement, like I said, it requires developers to set aside a percentage of their for-profit development to be either be sold or rented to the income- qualifying households at designated affordable levels. So we're going to take it back, and just talk about what does it mean to be, you know. 41 00:05:03.430 --> 00:05:10.360 Quinlan Conf Room: low income, and what level does that mean? There are currently 1, 2, 3, 4, 5, 6 recognized 42 00:05:10.370 --> 00:05:16.829 Quinlan Conf Room: Income levels within the low-income housing kind of, sort of menu, right? 43 00:05:16.830 --> 00:05:30.719 Quinlan Conf Room: At the very, top, we have moderate income folks. They make between 100% of area median income, so the middle income for Santa Clara County, up to 120%, so they're close to the middle, slightly higher. 44 00:05:30.930 --> 00:05:49.570 Quinlan Conf Room: But then our inclusion hasn't required… we require ownership development, so that means anytime there's single-family homes, duplexes, triplexes, townhomes, things that are meant to be individually sold with a deed, right? 10% of those are required to be made available to moderate-income households. 45 00:05:50.560 --> 00:06:04.279 Quinlan Conf Room: Next income bracket in income households. This is from 80% to 100%, so it's very close to the middle again, but slightly below area median income. That's also part of our ownership inclusionary requirement. 10% 46 00:06:04.310 --> 00:06:22.899 Quinlan Conf Room: any ownership development has to have their properties available to median income households. So, together, combined, that means 20% of any ownership… any ownership development is made to the affordable housing program. And you might be asking, what if that percentage 47 00:06:23.280 --> 00:06:28.930 Quinlan Conf Room: is only one unit, right? So, like, let's say there's, like, 6 houses in a development. 48 00:06:29.740 --> 00:06:37.430 Quinlan Conf Room: we go to median, right? We go to median instead of moderate. And once we get to extreme, right, then there's one median, one moderate, and so on and so forth. 49 00:06:37.770 --> 00:06:47.610 Quinlan Conf Room: Okay, now let's go to low income. Low income is from 50% to 80% area meeting income, and we require 6% of all rental 50 00:06:47.740 --> 00:06:57.770 Quinlan Conf Room: developments to be made available to low-income. So, anytime there's an apartment complex, anytime there's, something for rent, 51 00:06:58.300 --> 00:07:10.500 Quinlan Conf Room: That's typically part of the requirement. Also, we have our very low income inclusionary requirement, which goes in between 30% to 50% area median income. We require 9%. 52 00:07:10.500 --> 00:07:18.649 Quinlan Conf Room: of all rental projects being made available to very low income. So combined, that makes for 15% of the total developments, right? 53 00:07:18.660 --> 00:07:32.599 Quinlan Conf Room: We do not currently have a requirement for extremely low income, which is 15 to 30%, or acutely low. This is a very, very new one that was just established this year by the state, which is anyone below 15% area median income. 54 00:07:33.390 --> 00:07:52.389 Quinlan Conf Room: Another way to kind of visualize what these kind of mean, is essentially you've got middle class, right, working class, the very low is, generally speaking, where, like, the poverty line hits, and then extremely low and acutely low, you have people that are either unstably housed or essentially homeless, right? 55 00:07:56.460 --> 00:08:12.220 Quinlan Conf Room: Okay, so below market rate affordable housing fund, these… this is the fee that the city collects, to fund our kind of affordable housing activities. Our planners are responsible for collecting this upon issuance of a building permit. 56 00:08:12.420 --> 00:08:25.999 Quinlan Conf Room: And so, people cannot get their final inspections without paying this, right? And some eligible affordable uses of our low market rate housing fund are, number one, acquisition, so that means buying land strictly for upgrading development. 57 00:08:26.100 --> 00:08:32.030 Quinlan Conf Room: Construction of affordable housing. We've actually had this come to the Housing Commission right this, this March. 58 00:08:32.200 --> 00:08:43.130 Quinlan Conf Room: Preservation. This means if you have a property that already is affordable, but you want to extend the life of the affordability, you can give them, like, an additional, you know, grant or loan. 59 00:08:43.240 --> 00:08:53.779 Quinlan Conf Room: Rehabilitation, that's when older units, they start falling into disrepair, so maybe you say it's in exchange for repairing these units, you agree to restrict them into the program? 60 00:08:54.020 --> 00:09:00.360 Quinlan Conf Room: Affordable operation subsidies, so sometimes affordable housing projects, they have a gap. 61 00:09:00.560 --> 00:09:11.130 Quinlan Conf Room: operations, maybe not necessarily at year one, but maybe year three or year four, so sometimes you can see people using these kind of funds for an operations subsidy to kind of fill that gap. 62 00:09:11.300 --> 00:09:25.379 Quinlan Conf Room: And then BMR program administration, this is kind of portfolio management. We recently did this for the Rice Housing Contract, and typically that contract is funded out of the BMR fund, although this year, and for the next few years, it'll be funded out of the general fund. 63 00:09:25.540 --> 00:09:34.140 Quinlan Conf Room: Fair housing, this is, about enforcement and prevention of housing discrimination. 64 00:09:34.400 --> 00:09:44.780 Quinlan Conf Room: Right? How do discrimination based on things like race, ethnicity, sex, religion, religious identity, identity, sexual representation, things like that. 65 00:09:44.850 --> 00:10:02.100 Quinlan Conf Room: Then finally, other low-income housing activities. This one is kind of intentionally vague, but the idea being that, like, anything that can basically help prevent homelessness, even though we don't typically use this fund for that, we can. It's also enumerated in one of the eligible licenses. 66 00:10:04.820 --> 00:10:08.870 Quinlan Conf Room: So, to set kind of the context. 67 00:10:08.900 --> 00:10:22.960 Quinlan Conf Room: for this update of our inclusionary requirements, it's important to remember, that right now, we are in the midst of our, kind of, six-cycle housing element that includes the regional housing needs allocation, or the RHNA, 68 00:10:22.960 --> 00:10:29.339 Quinlan Conf Room: Which is something that HCD assigns to each city and county for each to provide their own fair share of affordable housing. 69 00:10:29.340 --> 00:10:36.719 Quinlan Conf Room: at various income levels, right? To meet equitable elementary affordable housing, to meet population and economic growth. 70 00:10:37.070 --> 00:10:46.259 Quinlan Conf Room: This was part of our housing element, and if you remember, we previously had a study session about trying to find, you know, more strategies for how we can 71 00:10:46.440 --> 00:11:00.470 Quinlan Conf Room: make more low and very low housing, right? And so, kind of updating this kind of inclusionary requirement will be kind of, like, one of the goals will be to help us kind of further our ability to meet 72 00:11:00.710 --> 00:11:07.309 Quinlan Conf Room: That's the state mandated requirement, really, right? To meet our very low and low-income housing needs. 73 00:11:08.680 --> 00:11:21.030 Quinlan Conf Room: And then, so, speaking of the housing element, this action that we're undertaking, it will be addressing two of our enumulated housing element strategies that is listed in the housing element as a required, 74 00:11:21.030 --> 00:11:39.570 Quinlan Conf Room: study and implementation action, from now in between, like, 2027 to 2029-ish. The first one being, HE2.3.3, we're a residential housing mitigation Program, which requires us to regularly analyze and update the Inclusionary Housing Program. 75 00:11:39.670 --> 00:11:45.109 Quinlan Conf Room: And the other one being AG2.3.9, is when we analyze and update the BMR feeds. 76 00:11:45.290 --> 00:11:46.739 Quinlan Conf Room: So, Volk 2 and 1. 77 00:11:47.930 --> 00:11:51.110 Quinlan Conf Room: Alright, now let's move on to the fee structure. 78 00:11:51.430 --> 00:11:57.919 Quinlan Conf Room: And how that works. It's gonna get a little bit mathematical. So there are two components for fee collection. 79 00:11:58.170 --> 00:12:02.280 Quinlan Conf Room: into the BMR AHF fund. There's one fractional fee. 80 00:12:02.770 --> 00:12:05.270 Quinlan Conf Room: One that we call the commercial linkage scheme. 81 00:12:05.980 --> 00:12:07.690 Quinlan Conf Room: So, the fractional fee 82 00:12:07.840 --> 00:12:15.280 Quinlan Conf Room: is collected on residential building permits. Your town homes, your family homes, your apartment buildings, right? 83 00:12:15.390 --> 00:12:19.860 Quinlan Conf Room: It's calculated to represent the remaining fraction 84 00:12:19.960 --> 00:12:27.750 Quinlan Conf Room: of a unit provision requirement. So going back to, like, what I was talking about before, what if the BMR requirement 85 00:12:28.130 --> 00:12:42.250 Quinlan Conf Room: for 15% of a, you know, rental unit project, for example, becomes 2.4, right? They can build two units, but what represents the 0.4 is the fractional fee, right? So we require them to build 2, we collect a fee on the .4. 86 00:12:43.350 --> 00:12:46.499 Quinlan Conf Room: The next component is called the commercial leakage. 87 00:12:46.700 --> 00:12:56.950 Quinlan Conf Room: This is collected from commercial building permits, and the idea behind this is it's calculated to ensure that job age growth in the city. 88 00:12:57.060 --> 00:13:13.850 Quinlan Conf Room: to commensurate affordable housing supply. The idea being, when you have the same amount of housing stock, right, in the market, if you increase the number of jobs, right, no matter what, that's an increase in demand, which means rents 89 00:13:14.400 --> 00:13:32.260 Quinlan Conf Room: have to go up by a certain amount. And if you have high income wages coming in, right, you have higher wage income people competing with the same people for the same apartments, meaning there's a larger jump, right, in the amount of rent that potentially could be charged. 90 00:13:32.320 --> 00:13:45.479 Quinlan Conf Room: So, it's going to be different, depending on the type of commercial growth that you get, right? We might ask you a question at this time, or do you want to save it until the end, or… Let's save it till the end, because I might answer it in the next slides. Okay. 91 00:13:45.480 --> 00:13:57.730 Quinlan Conf Room: First, we have the fract… let's go into how we calculate the fractional fee. We're going to run through an example, right? So, as I said before, the city's inclusion housing often results in a non-whole number, right? It's very rare that it's exactly 92 00:13:57.750 --> 00:14:04.109 Quinlan Conf Room: for exactly, you know, a certain number. So, in the example of a rental project that's got 22 units total. 93 00:14:04.820 --> 00:14:17.149 Quinlan Conf Room: They would be required to provide 1.98 very low income, which is the 9%, right, of a project, and then 1.32 loan annuities, right? 94 00:14:18.370 --> 00:14:21.809 Quinlan Conf Room: If the fractional portion of a requirement 95 00:14:21.930 --> 00:14:35.170 Quinlan Conf Room: is greater than 0.5, we ask the developer to round up, right? So, for the 1.98, we would say, please just provide us two very low income needles. If the fractional portion is less than 96 00:14:35.310 --> 00:14:38.810 Quinlan Conf Room: Then .5, then we ask them to pay the fractional fee. 97 00:14:38.960 --> 00:14:47.040 Quinlan Conf Room: The formula to calculate that fee is as follows, so we're going to kind of break that down. You have your gross floor area of your proposed project, right? 98 00:14:47.620 --> 00:14:58.640 Quinlan Conf Room: Multiply that by the fee amount per square foot of development type. So there's a different… this is… this is like a variable, right? So it's different for whether it's single-family, multi- family, two-place trip types, or whatever. 99 00:14:59.440 --> 00:15:18.490 Quinlan Conf Room: all of that, multiplied by each other, divided by the low market rate inclusion requirement of either 15 or 20%, as we previously mentioned, and then multiplying that by the remaining fraction. And that's how you are going to calculate your remaining fraction. So, therefore, for this… for this kind of project, we would require two very local units, because we're rounding off. 100 00:15:19.060 --> 00:15:22.790 Quinlan Conf Room: One low-income unit, because we're routing down that one. 101 00:15:23.050 --> 00:15:36.300 Quinlan Conf Room: And then they would have to pay that much money, $145,163.63, the BMR AHF fund to represent that .32. That would be the full BMR kind of requirement. 102 00:15:38.460 --> 00:15:45.640 Quinlan Conf Room: Next, let's talk about the commercial linkage fee. Again, it's also based on the square footage and use site, right? 103 00:15:46.310 --> 00:16:03.670 Quinlan Conf Room: And as I previously mentioned, lower-wage use sites have a lower fee, because if you're bringing in more jobs, yes, but they're generally lower wage jobs, so the demand impact is not going to be as high as if you were to bring in, like, an office. You're going to have people who make a lot of money. 104 00:16:03.790 --> 00:16:18.050 Quinlan Conf Room: So, we have currently 5 categories of different use types in our commercial linkage feed. One is Office of Research, which is the highest, right? And it goes down to hotel, self-storage, warehouse, and the lowest is commercial retail. 105 00:16:18.750 --> 00:16:25.060 Quinlan Conf Room: I would make a comment. Sure. Not a question. When you look at the, Exhibit B, 106 00:16:25.530 --> 00:16:41.860 Quinlan Conf Room: The highest one actually is warehouse. It's $49.29. Yeah. And the, research, which you would think would be the highest, is actually 10 or more dollars less than that, at $35.48, so those are both… 107 00:16:41.990 --> 00:16:47.950 Quinlan Conf Room: Hi. So I just wanted to… because that was such a surprise to me that, 108 00:16:48.200 --> 00:16:54.360 Quinlan Conf Room: I wanted to just mention it, because I'm sure it's probably surprising to everyone, because I don't understand then what a warehouse is. 109 00:16:54.960 --> 00:17:01.190 Quinlan Conf Room: But you don't have to answer that, just… I want to point that out so everybody's aware that that was a little startling when I read it. 110 00:17:02.370 --> 00:17:21.470 Quinlan Conf Room: So, let's talk about the goals of this update. So, number one, we want… we really want to be current with state law development, current with state law, meaning, like, because, you know, the state of California, they produce so many of these housing laws every single year, we want to make sure that our program is consistent with state law, we're not missing out on anything. 111 00:17:23.180 --> 00:17:38.639 Quinlan Conf Room: And the other is that we want to be current with the current development environment, right? We want to ideally reflect what kind of development we're seeing, so make sure that we're capturing that, right? So we're not missing out on any kind of, you know, use case that isn't being currently covered in our category. 112 00:17:38.890 --> 00:17:57.160 Quinlan Conf Room: The other thing we want to do is we want to be compatible with recall best practices, right? We don't… it's been… it's been some time since we've updated, like, some of these, and we don't… what we don't want is to be missing out on, something that makes Cupertino sort of, like, incongruent, right, with development. 113 00:17:57.160 --> 00:18:04.439 Quinlan Conf Room: outside anywhere else that possibly would entice people to do their housing development somewhere else, right? 114 00:18:04.460 --> 00:18:20.230 Quinlan Conf Room: We want to be equitable for affordable housing, right? We want it… this… we want this requirement to be accurately capturing enough funds or enough requirement that we can… we can be producing enough, affordable housing to meet, to be adequately mitigating the effects of, you know, the market rate development. 115 00:18:20.650 --> 00:18:34.699 Quinlan Conf Room: But mostly, we want to be legally defensible, whatever we want to do, right? We want this to hold up under scrutiny. We want it to be financially feasible, meaning we don't want it to impact development, right? You could technically be like, we only want 100% affordable housing, but 116 00:18:34.880 --> 00:18:49.820 Quinlan Conf Room: That would… that would realistically solve all development, right? And then finally, we want to be able to reach our re- net goals. Whatever we suggest, we want this to somehow be a positive effect for our city's ability to meet those low-income and very low- income housing goals. 117 00:18:51.200 --> 00:19:03.639 Quinlan Conf Room: So, let's talk about the next steps today. So, we actually did release the RFP. We're gonna bring in a consultant to study this, and, sometime in the fall, we haven't settled on a date yet. 118 00:19:03.780 --> 00:19:19.610 Quinlan Conf Room: they will be coming back, right? And they will be best basically presenting the options to the Housing Commission that we will be looking for your recommendation on. Your… your feedback also, you know, now, will kind of play into, 119 00:19:20.890 --> 00:19:37.510 Quinlan Conf Room: perhaps, like, it can give us an idea, right, of some of your priorities as well. But you'll be making that recommendation in the fall, and of course, everything has to be brought back to the City Council for final modification. We anticipate that to be in 2027, early 2027. 120 00:19:37.820 --> 00:19:39.200 Quinlan Conf Room: So… 121 00:19:39.340 --> 00:19:49.339 Quinlan Conf Room: I think at this point, we want to open it up to Commission to kind of ask any clarifying questions, and also just kind of start the discussion, because this is a study session. 122 00:19:54.470 --> 00:20:01.550 Quinlan Conf Room: So, I have questions on the study, or the intermission that you mentioned. A few questions. 123 00:20:01.900 --> 00:20:06.170 Quinlan Conf Room: the, income levels that you shared, right? 124 00:20:07.270 --> 00:20:10.909 Quinlan Conf Room: table that shows the different income levels. So that's… 125 00:20:11.470 --> 00:20:15.459 Quinlan Conf Room: Based on the county or the city? 126 00:20:16.080 --> 00:20:26.069 Quinlan Conf Room: So based on the county… The county level. Yeah, each county is kind of given its own sort of, area meeting income, and then income brackets. Okay. 127 00:20:26.470 --> 00:20:28.060 Quinlan Conf Room: And, 128 00:20:28.490 --> 00:20:45.650 Quinlan Conf Room: How are the, okay, percentages, how were they determined? You know, like, the requirement, like, 9% of rental and 6% of rental, how were they determined? So that was determined based on, kind of inclusionary studies of the past. 129 00:20:46.000 --> 00:20:54.000 Quinlan Conf Room: Where they were trying to figure out what is kind of the financially feasible way to include 130 00:20:54.410 --> 00:21:02.889 Quinlan Conf Room: you know, to make an inclusionary requirement, essentially, right? And the prevailing notion for the longest time has been somewhere between 15% to 20%. 131 00:21:03.120 --> 00:21:11.179 Quinlan Conf Room: of each, kind of market rate development. And so that's when each city kind of, like, adopting their own. It varies… 132 00:21:11.340 --> 00:21:13.660 Quinlan Conf Room: Ever so slightly, from city to city. 133 00:21:13.800 --> 00:21:23.469 Quinlan Conf Room: And the city of Cupertino decided to do 15% for rentals, and then 20% for ownership. Yeah. So this is like a… 134 00:21:23.620 --> 00:21:37.479 Quinlan Conf Room: juggled by the city itself. This was developed by the city itself, yeah. And this is not based on the 1992 thing? No, but more of a current… okay. Yeah, yeah. This would be… I think the latest time this was updated was, like, 2015-ish. 135 00:21:37.880 --> 00:21:38.840 Quinlan Conf Room: Yeah, Pat. 136 00:21:39.810 --> 00:21:50.290 Quinlan Conf Room: The entire manual was updated, or just that the fees and stuff like that? But the last time, the last time this manual was updated was in 2020, I believe. 137 00:21:50.950 --> 00:21:54.790 Quinlan Conf Room: Yeah. Okay. So does the requirement come from the… 138 00:21:55.470 --> 00:22:00.290 Quinlan Conf Room: But from us? Like, the 10%? Yeah, we… the city decides 139 00:22:00.580 --> 00:22:04.829 Quinlan Conf Room: on its own inclusionary housing requirement. 140 00:22:04.910 --> 00:22:24.019 Quinlan Conf Room: And so, what you'll see is each of these different… so, like, Sunnyvale actually recently did a study for the Nexus study, and they, like, looked at all the different cities' requirements, and they also looked at, like, financially, what can… what's the maximum they could feasibly start charging before, you know, it starts impeding development. And then they kind of, like, make a recommendation, like, through their housing commission. 141 00:22:24.020 --> 00:22:28.729 Quinlan Conf Room: But, like, what they want… what they want to do with their inclusion housing requirement, and how they want it to change. 142 00:22:28.810 --> 00:22:30.810 Quinlan Conf Room: How… how then, 143 00:22:31.420 --> 00:22:48.119 Quinlan Conf Room: How, then, can we measure how effective this below- market rate manual has been since its inception? And the reason I ask is, I only have the data for, of course, the last few years, and we haven't made much progress at all in 144 00:22:48.620 --> 00:23:02.609 Quinlan Conf Room: using the below market rate manual mitigation theories. So I don't know if between 1992 and 2019, it was better or not, and I don't know if you have 145 00:23:02.650 --> 00:23:15.930 Quinlan Conf Room: Any information on that? Part of the consultant study will be kind of looking at, like, the… the trending patterns of, like, development to see, like, where… like, if there was something that was, like, entirely impeding development. 146 00:23:15.930 --> 00:23:24.799 Quinlan Conf Room: I mean, it's generally pretty obvious, right? You would be getting no… we wouldn't be getting any applications at all. But also, like, seeing, like, where we get more or less 147 00:23:24.800 --> 00:23:44.170 Quinlan Conf Room: You know, that's kind of, like, included in sort of, like, their economic analysis. So that's not something I readily have, but that would be something that the kind of consultant bases some of their study on. Okay, I would like them to look at this, then, because… two things. One is that we do know what homes have been built, recently, like, within 148 00:23:44.450 --> 00:23:56.870 Quinlan Conf Room: Fantana, and the one on Main Street that had… that was built for homelessness and a few other low-income folks. Yeah. And then we've got the one on Westport. That was 19 homes, and this was 48. 149 00:23:57.930 --> 00:24:07.030 Quinlan Conf Room: And… Compared to that, we have had an update to, how many homes from our… 150 00:24:07.580 --> 00:24:15.539 Quinlan Conf Room: base of the low market rate homes are going to be lost in the next 3 years. That's 93. That's 93, and that's… 151 00:24:15.880 --> 00:24:29.989 Quinlan Conf Room: that's assuming… that's the only houses that have been built, and these are the only houses that are losing, but it's just a tremendous, disparity. So I don't know if somehow, before that, we were 152 00:24:30.110 --> 00:24:50.110 Quinlan Conf Room: building some more houses, and it just isn't captured right now, because that's just devastating, to be losing 93 homes in the next 3 years. And then after that, there's another 7 years, and you're going to lose the next 20. But the thing is that in this next coming 3 years. 153 00:24:50.110 --> 00:25:01.959 Quinlan Conf Room: And we aren't building, as far as I know, the two… well, I'm sorry, I didn't mean to interrupt your answer, but I was going to just finalize. The only two that I'm aware of 154 00:25:01.990 --> 00:25:18.979 Quinlan Conf Room: the affordable, the Mary Avenue, it was approved and funded, but it's in litigation or something. So, still sticks not on the ground, right? We don't have… and then there's the, teacher housing one. Yeah. And then… and they have been… 155 00:25:19.270 --> 00:25:25.419 Quinlan Conf Room: us sort of semi-approved, but they still have to go through a hold-on process, so… Anything other than… 156 00:25:25.920 --> 00:25:37.409 Quinlan Conf Room: all the rise and stuff. We just don't have much coming. Well, I should point out, though, so those ones are the 100% affordable products that have been brought to you guys, because, right, this is the commission that 157 00:25:37.410 --> 00:25:47.499 Quinlan Conf Room: deals with 100% affordable. Inclusionary housing requirement is going to be a requirement that affects market rate developments, and, like, puts in a requirement for them. 158 00:25:47.570 --> 00:25:51.740 Quinlan Conf Room: provide us with affordable housing. So, we do actually currently have… 159 00:25:52.670 --> 00:26:02.849 Quinlan Conf Room: Pipeline, market rate developments? How much… how many houses do we expect from that? Do you know? Is there a number on that? There is a number. I can't… I don't remember how many of… 160 00:26:02.910 --> 00:26:20.969 Quinlan Conf Room: the 8 in total on top of my head, but their names… Because aren't they all the 10% ownership kind? They're not the ownership kind, right? That's right. They're pretty much all townhomes. That's what I thought, and so that… that's part of the reason that we're not meeting our RENA number. Yeah. Part of the reason is because we've… we have been, 161 00:26:21.700 --> 00:26:35.539 Quinlan Conf Room: approving. The City Council has been approving some townhomes, but those companies are refusing to build above two stories or three stories because they can't fund it, they say. 162 00:26:35.700 --> 00:26:40.919 Quinlan Conf Room: They can't get loans, so it doesn't matter. We've got several that have been approved. 163 00:26:41.170 --> 00:26:50.569 Quinlan Conf Room: But the housing is so low, the numbers of housing are so low, that we are not meeting our RENA numbers. And so it's a big concern of 164 00:26:51.040 --> 00:27:02.800 Quinlan Conf Room: the city right now. I know that last time we had our meeting, they were talking about the arena itself, and how they might modify going back to the state and saying, hey, give us time. 165 00:27:03.040 --> 00:27:22.649 Quinlan Conf Room: we didn't know we're going to have this problem with funding, can we extend… not extend, but make some changes and add some sites? So that's where we are right now, right now. And so I'm just… I've been wondering, like, it doesn't seem like it's awfully effective, unless somebody finds some 166 00:27:22.660 --> 00:27:24.539 Quinlan Conf Room: Something else, somewhere. 167 00:27:24.590 --> 00:27:39.970 Quinlan Conf Room: And I'm… so that's why I was so concerned, and I started going through and going, okay, what else can we change in this below market rate manual to be more effective? Right. And have the questions for the consultant. I'm not meaning to… that I'm… 168 00:27:39.970 --> 00:27:55.459 Quinlan Conf Room: know everything or anything, just… they're all the questions I have, and I'm sure that other folks have some. I still have, questions on the study itself. Oh, that's fine, yeah, that's good. You know, proposals and, thoughts. 169 00:27:55.480 --> 00:27:58.979 Quinlan Conf Room: Does that same table that you had before, Nicky? Sure. 170 00:27:59.480 --> 00:28:02.560 Quinlan Conf Room: So the… before this. 171 00:28:03.210 --> 00:28:09.009 Quinlan Conf Room: Go to the other table. This one? Yeah, this one. So, the acutely low and extremely low. 172 00:28:09.160 --> 00:28:12.539 Quinlan Conf Room: So we're not considering them at all. 173 00:28:12.910 --> 00:28:25.010 Quinlan Conf Room: Well, we currently just don't have a requirement for that. So, okay, so, I mean, does that mean that… that doesn't mean that there aren't any acutely low or extremely low 174 00:28:25.010 --> 00:28:39.409 Quinlan Conf Room: Yeah. It doesn't mean that there are. So there are. So… and then you're talking about this inclusionary housing department, so why aren't we explicitly producing? 175 00:28:39.660 --> 00:28:41.830 Quinlan Conf Room: Extremely low. 176 00:28:42.030 --> 00:29:01.010 Quinlan Conf Room: income units to this inclusionary housing. It could be something that we ask our assistants to look at and see, like, you know, how can we make that feasible, right? Yeah. I mean, so it could be, it doesn't have to be rental or even ownership for the other two. It could be temporary housing. 177 00:29:01.200 --> 00:29:08.510 Quinlan Conf Room: transitional housing, shutters, anything, right? Yes. So there's a possibility that we could kind of… 178 00:29:08.690 --> 00:29:13.499 Quinlan Conf Room: include, I don't know if we're still calling it the Jewish story itself, it needs to reform. 179 00:29:13.630 --> 00:29:20.970 Quinlan Conf Room: on, population. There are some resources for that, yes, yes. That was one of my… 180 00:29:21.610 --> 00:29:26.860 Quinlan Conf Room: The field also might have… sorry, one more… 181 00:29:27.060 --> 00:29:36.439 Quinlan Conf Room: You mentioned about the, the fee that's collected, right? And it's going towards a copy of this one. 182 00:29:37.530 --> 00:29:46.299 Quinlan Conf Room: Can we include… Say, for example, like, helping somebody pay mortgage, down payment. 183 00:29:46.730 --> 00:29:59.710 Quinlan Conf Room: Like, rental assistance. Like a rental assistance? Yeah. For rental, you have, right? Rental assistants. So for ownership, can we do that? So then you have more people… For, like, mortgage down payment. 184 00:29:59.740 --> 00:30:13.780 Quinlan Conf Room: like a mortgage down payment? Yeah, some, help towards down payment, you know, I don't… again, I'm not sure whether it's feasible, but it's a thought. Why, why can't we think of that so you increase… 185 00:30:14.580 --> 00:30:28.050 Quinlan Conf Room: for owners. We previously did have a loan agent assistance program. I found some historical files for that. I could explore and ask why… what happened to that program. You know, we had to get some… 186 00:30:28.630 --> 00:30:36.510 Quinlan Conf Room: There's a lawsuit, thank. Yeah. No, I definitely found records of, like, like, an ancient, like, religious system. Okay. Yeah. 187 00:30:37.450 --> 00:30:39.170 Quinlan Conf Room: And, my teeth. 188 00:30:39.420 --> 00:30:46.670 Quinlan Conf Room: Fast farming, sorry. That's okay. Do you talk about the categories of the commercial linkage? Yes. 189 00:30:48.000 --> 00:30:52.709 Quinlan Conf Room: Commercial linkage fee? Yeah, yeah, those… oh, yeah. Okay. 190 00:30:53.180 --> 00:30:57.080 Quinlan Conf Room: All we hear now is data centers for AI. 191 00:30:57.310 --> 00:31:06.590 Quinlan Conf Room: No? So, don't we want to think about… because this is for the future, now it's excluded, right? So, in the next 10 years, say. 192 00:31:06.650 --> 00:31:10.730 Quinlan Conf Room: Where we may have data centers. 193 00:31:10.750 --> 00:31:18.980 Quinlan Conf Room: So is that some, like, R&D kind of thing? What that would do? Yeah. Because these are going to be… 194 00:31:18.980 --> 00:31:27.050 Quinlan Conf Room: humongous developments. I'm not saying it's going to happen quickly enough. There is a possibility it could. I'm preparing for that, yeah. So… 195 00:31:27.050 --> 00:31:39.760 Quinlan Conf Room: where's the land, and then what it's going to do to housing, increase in housing, decrease in housing, so I think that would be a nice thing for the consultant to look into. 196 00:31:46.870 --> 00:32:03.739 Quinlan Conf Room: the consultant… so the back to… so the back… the percentages, can the consultant do, like, modeling based on different percentages? Yeah, yeah, so… And see what that would do? And we would ideally produce, like, basically, like, prototypes of, like, like, different… 197 00:32:03.860 --> 00:32:06.589 Quinlan Conf Room: Modelings of different… yeah, exactly, different model… 198 00:32:07.260 --> 00:32:16.040 Quinlan Conf Room: like, what kind of, like, developments would pencil out, right? Yeah. By different inclusionary requirements in them with different fees, right? And at one point. 199 00:32:16.040 --> 00:32:29.450 Quinlan Conf Room: do we start hitting breaking points where suddenly things are no longer feasible? So we can calculate where's that sweet spot between, like, where we can increase things without essentially hampering development. Yeah. And so, yeah, we would be asking 200 00:32:29.450 --> 00:32:41.150 Quinlan Conf Room: That would be essentially what the consultant brings to the… Right, right, a bunch of different prototypes to kind of… yeah. Okay. Yeah, because I had a thought about that AI as well, because I looked this up on, 201 00:32:41.250 --> 00:32:59.370 Quinlan Conf Room: Google. When they said other categories, I'm thinking, hmm… and it was amazing. They said, oh, are you trying to build a, you know, a new Nexus report for your city? And I went, oh, well, not exactly. And, so they had, like, four different categories. They said, you have to modernize. You can't use 202 00:32:59.530 --> 00:33:01.820 Quinlan Conf Room: Square footage. 203 00:33:01.840 --> 00:33:21.080 Quinlan Conf Room: And just to note, this business about level of wages was not in our… was not in this, chart, so it doesn't really explain how level of wages and square footage work together to come up with this particular thing, but that's a separate question. The thing was, I was talking about, you don't use square footage. You use something like, 204 00:33:21.080 --> 00:33:25.880 Quinlan Conf Room: Megawatts for, electricity, how much electricity is used. 205 00:33:25.880 --> 00:33:41.100 Quinlan Conf Room: for whatever you're getting economically out of it, and then also water, because AI uses a lot of water as well. And so, I mean, it all starts blending together, making it crazy after looking for a while, but in our housing element. 206 00:33:41.320 --> 00:33:44.080 Quinlan Conf Room: One of the things we're looking at in here is, 207 00:33:44.470 --> 00:34:03.049 Quinlan Conf Room: three, I think. But four specifically talks about water and electricity usage for homes. Okay, if we're caring about that for homes, you know good and well the city's going to be caring about that, right, for all of our business. We have, as a matter of fact, a, 208 00:34:03.400 --> 00:34:15.690 Quinlan Conf Room: Environmental Handbook, and one of them talks about new companies coming in, building green buildings, you know, using solar panels and things like that. 209 00:34:15.770 --> 00:34:34.029 Quinlan Conf Room: So that's one aspect of it, and then there's landscaping, different lands altogether. But those two things, specifically, water and energy, so I have to commit, I went a slightly different way, and we're talking about… I was thinking about an idea. Can the city just zone in such a way that you don't… 210 00:34:34.290 --> 00:34:45.319 Quinlan Conf Room: get proposals from AI? I mean, I know that we zone all kinds of things, right? We zone, zone, zone, zone, zone, so I don't know about that. It makes a lot of money, but it destroys 211 00:34:45.500 --> 00:35:02.720 Quinlan Conf Room: it can destroy the environment you're living in. And I know that our city cares a fair about the environment, so it's just a question, is there a way that the city can take action, maybe not even wait till this whole thing plays out, but is there a way to, 212 00:35:03.040 --> 00:35:04.530 Quinlan Conf Room: I'm not sure. 213 00:35:04.570 --> 00:35:18.479 Quinlan Conf Room: So that we don't get those kind of proposals at all, because they know they're not welcome here. Planning Commission question now. I'm not sure how the zoning interacts with this, but to the question about should we consider 214 00:35:18.480 --> 00:35:28.560 Quinlan Conf Room: you know, a data center as a category, as a use category. That's definitely something we can ask, you know, our consultant to look at and see, like, how does that 215 00:35:28.560 --> 00:35:37.550 Quinlan Conf Room: You know, the development of a data center affect, you know, cost of housing in an area? And how does it particularly raise, you know, costs of housing? 216 00:35:37.770 --> 00:35:52.179 Quinlan Conf Room: How do we… how do we accurately mitigate for that? So that's definitely something we can actually factor into that. So I'd like to bring up, then, the other three that they said. They said AI data centers you use per megawatt of power, or peak GPM. 217 00:35:52.440 --> 00:35:59.039 Quinlan Conf Room: water flow. That's where AI data… and it said the outdated classification was 218 00:35:59.390 --> 00:36:16.629 Quinlan Conf Room: warehouse. And that's when I went, warehouse? We've got $49, is the fee that we charge for warehouses, and that brings the question up, which at some point we need to answer to, what kind of warehouses do we have that we charge this kind of fee for? And how on earth is it even in the same 219 00:36:16.630 --> 00:36:30.839 Quinlan Conf Room: thing as heavy industrial slash warehouse. So that was the one, the AI data centers. That's where he grabbed my attention, this warehouse thing. But anyway, the other things are, like, professional office, all outdated. Now what it is, is life science. 220 00:36:30.880 --> 00:36:31.990 Quinlan Conf Room: Let. 221 00:36:32.100 --> 00:36:49.269 Quinlan Conf Room: Okay, that's per square foot with specialized HVAC and biosafety level, all this stuff of multipliers, every time you get into an algorithm, right? Then there's last mile logistics, like, say you were getting a… not REI, but Amazon. Say Amazon gonna come to your town, and… 222 00:36:49.280 --> 00:36:54.710 Quinlan Conf Room: So, that takes the place at a regional distribution warehouse, because last mile logistics 223 00:36:55.090 --> 00:36:58.959 Quinlan Conf Room: Trucking, use of revere roads, and all that stuff. 224 00:36:59.140 --> 00:37:01.420 Quinlan Conf Room: Per daily delivery van trip. 225 00:37:01.540 --> 00:37:10.839 Quinlan Conf Room: What is your peak hour, and where are all these trucks going, and all that stuff. I mean, studies that, of course, the, 226 00:37:10.880 --> 00:37:23.389 Quinlan Conf Room: consultant would probably already thinking about, and the point was, and I didn't read everything, but this was in this particular one, micro-hospitals. Don't know that we have such a thing, but they said, that 227 00:37:23.530 --> 00:37:39.719 Quinlan Conf Room: That means you need to do per bed unit or peak hourly outpatient transaction count, and I don't even know what that has to do with… This is all energy consumption, right? Yeah. So here's the thing, right? The AI data… the data center is a new, new kind of, yeah. 228 00:37:39.780 --> 00:38:03.890 Quinlan Conf Room: a building type that is being thrown out. I do know that there are some architecture firms, I mean, taking my own professional thing. I know, like, firms, because the energy consumption is just a ridiculous amount that is required, so I do know that the firms that are designing AI data centers are looking into how they can generate more power, right? This is so that 229 00:38:03.890 --> 00:38:12.570 Quinlan Conf Room: the existing power doesn't get depleted, so I do know that there's a lot of technology being developed for that. So, 230 00:38:12.570 --> 00:38:26.620 Quinlan Conf Room: you know, I know that the profession is, gearing up to deal with these, big, monstrosity of buildings that's going to come up. In terms of what the city can do, I do know, like, some 231 00:38:26.620 --> 00:38:46.160 Quinlan Conf Room: they have acquired lands in, like, Midwest, like, I don't know, like, you know, where there's nothing there right now, right? But there are, opposition to that because of what it's going to do to the natural resources and so forth. Yeah, it's a question for the city if they want to… 232 00:38:46.190 --> 00:38:55.279 Quinlan Conf Room: take such an action before it comes into Cupertino. It's just, something that you want to think about, yeah. 233 00:38:55.500 --> 00:39:08.020 Quinlan Conf Room: Another thing that's in… I want to ask you, because you're talking about knowing a little bit more about it than I do. My understanding was that these, AI buildings really don't have a lot of employees. Is that… 234 00:39:08.640 --> 00:39:19.989 Quinlan Conf Room: Yeah, it's just a data center. It's just, like, storage, it's all, like, storage. But that's sort of my point. If they don't have any employees, and what we're using is Square Fat. 235 00:39:20.170 --> 00:39:30.229 Quinlan Conf Room: square footage and, salaries of the employees there. If they don't have many employees, I don't know how we're going to algorithm 236 00:39:30.260 --> 00:39:47.340 Quinlan Conf Room: much… then… anyway, that was my question. I just don't understand how that factors into how it currently. It lights out most of the time. Yeah. I mean, but then those employees work in victim centers, so easily. Yeah. Yeah. 237 00:39:47.400 --> 00:39:53.429 Quinlan Conf Room: It's a tough question, it's a new thing. Resource usage is probably a better way of… 238 00:39:53.640 --> 00:40:05.200 Quinlan Conf Room: Well, and that would be something, then, we'd want to be considering, because that's what we, right now, are using, is square footage and the wages of people. 239 00:40:05.200 --> 00:40:14.250 Quinlan Conf Room: And if you only had one person there, no matter how much they earned, probably wouldn't do much. I mean, it doesn't do much for how many houses you need, right? You have one person? 240 00:40:14.250 --> 00:40:17.010 Quinlan Conf Room: That's correct. Got one person. Okay. 241 00:40:17.010 --> 00:40:25.740 Quinlan Conf Room: they can live just about anywhere, but, anyway, yeah. Yeah, I just wanted to, yeah. Go ahead. 242 00:40:26.060 --> 00:40:28.900 Quinlan Conf Room: They can also have data center in Cupertino. 243 00:40:29.640 --> 00:40:48.409 Quinlan Conf Room: Because there's something wrong. Yeah. So if they can afford to build a data center in corporate, you know? Well, those companies can. Trust me, they can afford, you know? The companies can, but then, you know, are they willing to spend so much money? 244 00:40:48.410 --> 00:40:50.459 Quinlan Conf Room: Well, that's true, they're building in San Jose. 245 00:40:50.590 --> 00:40:54.199 Quinlan Conf Room: Just for the record, right? Yeah, true. They've got the mayor all 246 00:40:54.340 --> 00:41:13.590 Quinlan Conf Room: That's true, that's true. Well, maybe we don't have that problem. Okay, so… No, but it's good to address it, it's good to address it, and then… I think they should at least be aware of it, and if they do this letter and find out, yeah, no way in heck anybody would do that here. Well, that's good, cross your fingers, you know. 247 00:41:13.660 --> 00:41:23.479 Quinlan Conf Room: That's fine. I would like to ask, other questions, which is the whole below-market rate manual. One of the things we said about our study session was to examine 248 00:41:23.480 --> 00:41:35.459 Quinlan Conf Room: And so, I was examining more than just these two items, like on page 19 of it, should the applicability and the payment rules… 249 00:41:35.700 --> 00:41:42.360 Quinlan Conf Room: Because there's, all kinds of That's on page 19. 250 00:41:44.060 --> 00:41:50.500 Quinlan Conf Room: In there, it talks about what is applicable to the housing mitigation program, the non-residential. 251 00:41:51.070 --> 00:42:10.949 Quinlan Conf Room: So I was just wondering, maybe these categories need to be resolved… because if it's not been updated in a while, do we have other kind of buildings and things that we need to look at? But the payment one was even more interesting to me, because I understood that it's talking about when you pay your fees. 252 00:42:11.140 --> 00:42:29.419 Quinlan Conf Room: The first paragraph A says you pay them when you get your inspection permit. Oh, but B is, in the event that you're allowed to defer that, then you do it at first occupancy, unless there's a negotiated development agreement, and then if it can be something else. And then if it was C, 253 00:42:29.470 --> 00:42:34.069 Quinlan Conf Room: all fees be deposited into the BMR… well, that's… 254 00:42:34.340 --> 00:42:37.300 Quinlan Conf Room: Of course, that is. But anyway, I just thought that was interesting, like. 255 00:42:38.370 --> 00:42:53.719 Quinlan Conf Room: does it matter? I mean, because that's something that our… I know our city cares about, is when does the money come in? Why don't we have more in our EMR AHF fund? You remember all those questions, right? And I'm like, so this is like, oh, well, this would make it even more 256 00:42:53.720 --> 00:43:08.750 Quinlan Conf Room: iffy, like, well, that one is going to give it to us on the date of construction permits, and that one's going to give it to us on the date of first occupancy, and this one's going to give it to us… well, look on their development agreement on page 10. It tells you when they're going to do it. So, it's just getting more… 257 00:43:08.870 --> 00:43:10.170 Quinlan Conf Room: Needs a computer. 258 00:43:10.300 --> 00:43:16.850 Quinlan Conf Room: Of course. But anyway, so these kinds of things, and things are perhaps impactful. 259 00:43:16.850 --> 00:43:34.359 Quinlan Conf Room: you can't tell on the surface whether they're impactful, right? It has to do with the timing of when we get the money, and when we want it for something else. If we ever have it, can we ever use it for anything else? Because we don't know, and it's going to be landing in our pocketbook. So I just would like to have somebody look at. 260 00:43:34.380 --> 00:43:47.639 Quinlan Conf Room: that piece of it. And then I've got others, so I will defer to another question from somebody else at this time. Go back to the previous slide, where they said, yeah, 20%, right? Another one with a table with the same? Sure. 261 00:43:48.040 --> 00:43:52.349 Quinlan Conf Room: This… yeah. This one. This one, right, Shay? 262 00:43:52.620 --> 00:43:59.130 Quinlan Conf Room: Is this… if 20%… All that's allocated for middle market, so nobody buys it. 263 00:44:00.010 --> 00:44:07.660 Quinlan Conf Room: what happens to those 20%? Oh, good question. So… 264 00:44:07.770 --> 00:44:20.020 Quinlan Conf Room: In the rare case, and I don't think this has actually ever happened in the history of Cupertino, but if there was ever a below- market rate ownership unit that for some reason just could not be sold. 265 00:44:21.570 --> 00:44:36.500 Quinlan Conf Room: what the… the developer… they have, like, 6 months or something like that to market and sell it. Even after then, there's no bites, the developer is allowed to sell it at market rate with no restrictions. However, the city 266 00:44:36.500 --> 00:44:42.279 Quinlan Conf Room: We'll get the proceeds of the sale, and the difference of that market rate price 267 00:44:42.920 --> 00:44:48.360 Quinlan Conf Room: And the assumed BMR price, meaning the developer would not see any windfall. 268 00:44:48.360 --> 00:45:11.919 Quinlan Conf Room: Right? So they would sell it to the market, they would sell it on the market, and it would become an unrestricted unit, but the city would get the proceeds of that. Oh, that's nice. Yeah. So that's how we can make sure that people make a good effort to market that unit the right way, yeah. But I don't think that there's an excess, right? I would think there is actually, like, isn't there, like, a big wait list? Yeah, so we've never had an issue. 269 00:45:11.920 --> 00:45:18.669 Quinlan Conf Room: of not finding a buyer. I think the only time when there's been, like, issues with actually, like, getting it sold is… 270 00:45:18.770 --> 00:45:38.670 Quinlan Conf Room: sometimes developers like to play this game where they say that our unit is so special, the windows are so nice, and the lights are so pretty, so can we please, please increase the price more and more, and I have to tell them, you know, you're selling it to people that are low income, so you can keep doing this, but you still have to sell those people eventually, and yeah, so… 271 00:45:38.670 --> 00:45:48.170 Quinlan Conf Room: Yeah, kind of shooting themselves in place. Yeah, the BMR application, I saw some… it closes, like, in October of every year? Yeah, yeah. 272 00:45:48.200 --> 00:45:49.460 Quinlan Conf Room: So… 273 00:45:50.050 --> 00:46:08.690 Quinlan Conf Room: Which means somebody who… a new, a resident who becomes, loses a job, or their family situation changes, like the day in November. So they have to wait almost the entire year to apply and get their thing processed. 274 00:46:08.690 --> 00:46:16.490 Quinlan Conf Room: So, is there a possibility for this to become, like, a year-round application process? 275 00:46:16.750 --> 00:46:22.270 Quinlan Conf Room: And say maybe if people go through, like, a pre- qualification. 276 00:46:22.450 --> 00:46:41.669 Quinlan Conf Room: Whenever they can, they want to, and then get onto the list, and then if somebody's not eligible, they can just remove themselves from the list, but if some unit becomes available, you know, so it's, like, on a rotating basis, rather than start and stop, like. 277 00:46:41.670 --> 00:46:51.810 Quinlan Conf Room: Because of just one time application for a year, would it be, like, on a rolling basis? This is a great question. I actually recently wrote a council information memo. 278 00:46:52.020 --> 00:46:59.970 Quinlan Conf Room: basically on different structures of BMR programs and pros and cons. I think that they'll be publishing it soon, so we can wait. 279 00:47:00.080 --> 00:47:06.079 Quinlan Conf Room: Would I get published to talk about it more if you want, but the gist of it is. 280 00:47:06.190 --> 00:47:10.870 Quinlan Conf Room: there's pros and cons to that… to that system as well, right? So, like, on paper. 281 00:47:11.030 --> 00:47:30.070 Quinlan Conf Room: Yes, someone would be able to apply during a year- round system at any time, and potentially, if they have really, really, really high priority, let's say they're, like, they already live in Cupertino, they already work in Cupertino, they're, you know, very, very low income, and they're, like, a physician, perhaps they could. The other thing to remember is with a waitlist that's open. 282 00:47:30.770 --> 00:47:32.050 Quinlan Conf Room: year-round. 283 00:47:32.610 --> 00:47:42.339 Quinlan Conf Room: those become, like, thousands and thousands and thousands of people long, so that's not necessarily a guarantee that they'll quickly get in. Number one. And then… 284 00:47:42.650 --> 00:47:48.799 Quinlan Conf Room: The structural difference in a year-round system actually does kind of add 285 00:47:49.800 --> 00:48:00.829 Quinlan Conf Room: administrative steps for applicants, right? So they'll apply once to qualify to get on, and then they've got to apply kind of a second time to each individual property as the unit comes available, as opposed to having 286 00:48:01.720 --> 00:48:06.040 Quinlan Conf Room: one single waitlist that we can maintain for a year. 287 00:48:07.530 --> 00:48:18.740 Quinlan Conf Room: It's really depending on, like, policy-wise, which one you prefer to do. The one-month one, it has a built-in refresh, so we don't have to do any purging, and… 288 00:48:19.360 --> 00:48:26.299 Quinlan Conf Room: generally speaking, people who are low income apply to Beyond It anyways, regardless if there's been a change in their income. 289 00:48:26.460 --> 00:48:51.459 Quinlan Conf Room: Go ahead. Yeah, yeah, there's, yeah, there's pros and cons to both. Actually, we should probably table this discussion as after the infomidal comes out. Yeah. Yeah. So for your own one, you could have, like, 3 or 4… Maybe even a shorter cycle. Four windows, which… Yeah, like, every quarter or something. Something, so that it's more readily accessible to people who are qualified, right? Actually, another… 290 00:48:51.460 --> 00:48:54.269 Quinlan Conf Room: There's different ways to do it. So there's, like, year-round. 291 00:48:54.310 --> 00:49:06.829 Quinlan Conf Room: Where it's just always open, and then there's one where it's, like, semi-annual. Like, I think San Mateo does that. It's, like, every three months, or something like that. And then we do once a year. Some places do as needed, where they only do it whenever the 292 00:49:06.840 --> 00:49:11.660 Quinlan Conf Room: the list is completely run out. Yeah, there's pros and cons to each one of them, to be honest. 293 00:49:11.660 --> 00:49:33.689 Quinlan Conf Room: Yeah. You know, you mentioned the San Mateo? Yeah. They, they have the lowest homelessness rates, right? So there is this article in here that, like, referenced that. So, if there are tried and true systems that promote less homelessness in unhoused setup, then are there ways that we can look at 294 00:49:33.690 --> 00:49:34.979 Quinlan Conf Room: what they're doing. 295 00:49:34.980 --> 00:49:43.049 Quinlan Conf Room: that we may be able to fill in, so I don't feel like we have to read the bill. We can. That's kind of what this study is doing. 296 00:49:43.080 --> 00:49:47.780 Quinlan Conf Room: They're looking at best practices of other cities to see which ones 297 00:49:47.910 --> 00:50:06.149 Quinlan Conf Room: see the most success, right, in developing more affordable housing, and then we're trying to align that with the market, but also with our, kind of, state housing, you know, goals, to see where's, like, that middle sweet spot, right? What's still friendly to developers, but friendly to the savings, right, for our goals. 298 00:50:06.630 --> 00:50:11.710 Quinlan Conf Room: Yeah, and part of that is looking at, you know, other cities, and seeing what works. 299 00:50:12.380 --> 00:50:16.020 Quinlan Conf Room: This is a great article, I'll ask it all. Oh, thanks, yeah, sure, yeah. 300 00:50:16.590 --> 00:50:31.120 Quinlan Conf Room: I came across this term, field option… Yes. In the thing. What is it? I mean, you didn't mention that in your presentation. Yeah, this kind of goes to, alignment with state law. So, a new state law that was passed. 301 00:50:31.380 --> 00:50:40.639 Quinlan Conf Room: Is that cities need to have an option for if a developer wants to entirely fee out, meaning not provide any market rate vehicles. 302 00:50:40.810 --> 00:50:43.990 Quinlan Conf Room: And instead, just pay a really, really big fee. 303 00:50:44.300 --> 00:50:48.170 Quinlan Conf Room: Instead, right? To our bucket rate fund. 304 00:50:48.170 --> 00:51:04.359 Quinlan Conf Room: And we currently don't really have a separate calculation for that, because this is a new state law, why would we, right? And so part of this update will be creating a fee-out option, because we are legally required to have… So this is mandated by the state? Yes, yeah, we are mandated by the state to have a fee-out option. 305 00:51:04.360 --> 00:51:13.289 Quinlan Conf Room: Does that sound crazy to anyone besides that? Yeah, I know, but that's… If they fee out, and they pay you money, and they would all do that, well, many would. 306 00:51:13.560 --> 00:51:23.950 Quinlan Conf Room: we don't have so much land that then they can just say, well, build them here. I mean, what you're not supposed to do, you're supposed to be having them throughout your outtown, but… 307 00:51:24.750 --> 00:51:33.599 Quinlan Conf Room: I mean, they would never build any. So for our methodology, we might ask a consultant to also look at land value costs, right? If they do decide to do a fee out and say. 308 00:51:33.620 --> 00:51:49.129 Quinlan Conf Room: realistically, what would we need to do to acquire, right? So that would be something we could ask for consultants to kind of factor in, right? cost can be high, right? So that it doesn't… the rate is down. But then, still, talking about this last time when we had the… 309 00:51:49.130 --> 00:51:56.650 Quinlan Conf Room: Who was there? Somebody else was there. Anika, maybe it was Anika? Oh, Luke? Was it, was it Voil? He's our assistant director. 310 00:51:56.650 --> 00:51:58.650 Quinlan Conf Room: So, for Robert, we're talking about… 311 00:51:58.650 --> 00:52:21.850 Quinlan Conf Room: the state is telling us we need to increase more housing, but they're also giving them all these loopholes that the developers can get out of. So, why are they doing this? This is, again, another way out for the developers, you know? So… I haven't made peace with the state, but I heard someone say that, you know, like, they're a loose collection of people that all have different priorities. 312 00:52:21.910 --> 00:52:36.279 Quinlan Conf Room: And so if it seems like what they're doing isn't consistent, that's because it's not consistent, right? That's because, yeah. And I have learned a lot about that in the recent past, that the laws don't… 313 00:52:36.760 --> 00:52:52.879 Quinlan Conf Room: don't always, you know, merge with each other. This one is exactly the opposite of that one, and that's how we keep running into problems with our, housing element. And the RISE, did that. They had 314 00:52:53.400 --> 00:53:03.440 Quinlan Conf Room: SB35, which is a different kind of law altogether, and they were going to make 50%, and their houses were going to be, excuse me, below market rate. 315 00:53:04.040 --> 00:53:22.399 Quinlan Conf Room: And then they… the law got changed so that then they could reduce it, and they reduced it, and then they reduced it. Now, the nice thing about it is the ones they are going to build, they say they're going to build first. So therefore, all of that construction that's going on right now may be… will be… 316 00:53:22.410 --> 00:53:41.340 Quinlan Conf Room: below market rate homes, but there's a whole lot of market rate homes that are going to be built instead. And so, it's really, that's when I first understood completely how the laws don't really mesh too well with each other. Like, density rules don't really help get density 317 00:53:41.500 --> 00:53:52.149 Quinlan Conf Room: apartments, you get parking, not parking, or whatever, but they can ask for all kinds of things, not houses. So it's, yeah, thankfully, it's really not a… 318 00:53:52.480 --> 00:54:06.369 Quinlan Conf Room: Oh, yeah. It's not, it's not easy to get there. Last time, you also talked about how, ADUs actually add to the, number of housing, right? Yes, yes, yes. Yes. 319 00:54:06.600 --> 00:54:27.730 Quinlan Conf Room: That's another, it's a loophole. This is something I'm hearing from contractors who are building additions to homes, extension of homes. They're applying to the city. This is not how… I'm not talking about… this is not in Cupertino, by the way. So this is a different city, around the peninsula, you know? 320 00:54:27.730 --> 00:54:34.099 Quinlan Conf Room: that… They are building homes with additions, making the homes larger. 321 00:54:34.130 --> 00:54:46.629 Quinlan Conf Room: But they are getting it as a ADU permit, which means they have a lot of leeway, like, you know, the setbacks are less and all this stuff. So they're getting it approved as the ADU, 322 00:54:46.630 --> 00:55:01.650 Quinlan Conf Room: But it's, in fact, not an ADU, it's just an addition to the existing home. Yeah. So, this is all… this is happening. I don't know. I don't know about Cupertino. Cooper's right across my house, they're being sold as… 323 00:55:01.730 --> 00:55:15.639 Quinlan Conf Room: 4 or 5 bedrooms with an ADU. Yeah. And then the ADU was part of the house. Yeah, so it's like, you know, so maybe the planning department who's giving the permit for the, you know, they need to tighten up? 324 00:55:15.680 --> 00:55:24.789 Quinlan Conf Room: These things, I don't know, again, the intersection of local and state law plays into account for this, right? I think it's called SB… 325 00:55:25.100 --> 00:55:40.970 Quinlan Conf Room: I don't… I don't remember. It's been a long time since I was a planner. But the… the gist of it was, when I was a planner, they said every single family home by state law has to be able to do either an ADU detached, or a JEDU attached. That is my right. 326 00:55:40.970 --> 00:55:57.850 Quinlan Conf Room: And so, yes, there are some developments that are going on where it's, like, a single-family home. It's like a really, really big… Yeah, I know. And that's their JEDU. Right. That's so far about the state. So, but then the city can… is saying, hey, I have an extra unit. 327 00:55:57.850 --> 00:56:15.630 Quinlan Conf Room: then it is not, actually, an accelerant, right? And then they might be using it, right, as just, like, another living room. Because another interesting thing about the ADUs is that, even notwithstanding that particularly awful problem, is that even if they were all regular ADUs like they're supposed to be. 328 00:56:15.850 --> 00:56:30.720 Quinlan Conf Room: They are counted for, below market rate in the arena by a percentage. A percentage of them are considered below market rate, and a percentage of them are considered market rate, when in fact, since none of them are actually income 329 00:56:31.280 --> 00:56:34.960 Quinlan Conf Room: They're not income deed restricted. They're not deed- restricted. That means that… 330 00:56:35.200 --> 00:56:53.260 Quinlan Conf Room: anybody can rent them, not below market rate. So even though we get credit for them, and I guess I'm glad we get credit for something, that we don't actually have below market rate homes, because in New York, you know, they pay for a closet, and willingly pay a whole bunch, and I'm sure we could do that 331 00:56:53.270 --> 00:57:04.670 Quinlan Conf Room: Here, and that's why that's a little bit disingenuous, I think, on the part of the arena people letting us do that, but that's beside the point. I don't want to get into that too far, because there are so many other things. 332 00:57:04.670 --> 00:57:16.119 Quinlan Conf Room: like, when we talk about these big issues, I go, oh, well, but I do want to mention that within the below market rate manual itself, where you're talking about design requirements? 333 00:57:16.120 --> 00:57:16.790 Quinlan Conf Room: I'll… 334 00:57:17.810 --> 00:57:31.399 Quinlan Conf Room: Oh, well, so the… I was gonna add, I was gonna add something. I just wanted to wait for you to be done. Okay. Within the, market rate manual, it talks about design requirements, and then I think… 335 00:57:31.510 --> 00:57:41.280 Quinlan Conf Room: Well, you might well go ahead and change them, because developers aren't doing them anyway, and they're using density bonuses to get out of them. Things like 336 00:57:42.330 --> 00:57:46.610 Quinlan Conf Room: Unit sizes… And how many bedrooms you have. 337 00:57:46.840 --> 00:57:50.899 Quinlan Conf Room: And the size of the building itself. 338 00:57:51.120 --> 00:57:59.790 Quinlan Conf Room: And then the shall be dispersed throughout the project. Yeah. Shall be dispersed throughout the project did not work for Westport. 339 00:58:00.130 --> 00:58:12.999 Quinlan Conf Room: They have a lovely 48-room building, but it's standalone. All the townhomes are separate from that. I'm going to assume that happened at Rise, because their stuff is going to be separate, and they're building them first. 340 00:58:13.320 --> 00:58:16.159 Quinlan Conf Room: That's not dispersed throughout the project. 341 00:58:16.330 --> 00:58:25.560 Quinlan Conf Room: this… the time I really noticed it for the size of the bedrooms and the size of the units was with all these new townhomes that are being reviewed. 342 00:58:26.280 --> 00:58:37.999 Quinlan Conf Room: At some point, you go, oh, those are really big, really big houses, those townhomes. Oh, but oh, these are a little… they're still awfully big, but… 343 00:58:38.000 --> 00:58:47.960 Quinlan Conf Room: They're smaller. They're smaller than the… So, all the townhomes that we've just now approved have different sizes for the median and moderate… 344 00:58:48.490 --> 00:58:51.059 Quinlan Conf Room: poems within, 345 00:58:51.650 --> 00:58:59.329 Quinlan Conf Room: Period. Yeah. They do, and so it's like, why do we have that in our… we might as well strike that out of our manual, because 346 00:58:59.550 --> 00:59:07.819 Quinlan Conf Room: partly you can't use it anyway, and because it's a little… I think it's even back in the day, when maybe they didn't have all those density bonuses. 347 00:59:08.330 --> 00:59:17.529 Quinlan Conf Room: It's disingenuous to think that you can build, things that are exactly the same size, and yet you're going to 348 00:59:17.780 --> 00:59:25.460 Quinlan Conf Room: people are going to pay less for them, and somehow the government is going to subsidize the whole rest of it. It gets… it gets to defy 349 00:59:25.740 --> 00:59:38.680 Quinlan Conf Room: irrational thinking about how people actually, make their money when they're building things, or how cities… I mean, how much do cities actually want to, backstop people? 350 00:59:38.790 --> 00:59:46.839 Quinlan Conf Room: anyway, so I… that… that point is just this one here, about the design requirements. 351 00:59:47.060 --> 00:59:54.209 Quinlan Conf Room: And feeding into the, how much do people want to, how much does the city want to backstop? 352 00:59:55.110 --> 01:00:03.840 Quinlan Conf Room: How will the city backstop the payment for BMR owners when fire insurance prices exceed a reasonable limit? 353 01:00:03.890 --> 01:00:20.760 Quinlan Conf Room: Now, one answer that I received was, oh, the HOA takes care of that. I go, oh, yes, have you ever dealt with an HOA? They're just people, right? In a housing complex and all that. And now you've got this many that are regular, and this many that are below market rate, and fire insurance rates 354 01:00:20.760 --> 01:00:24.389 Quinlan Conf Room: As we all know, keep going up every 6 months. 355 01:00:24.410 --> 01:00:35.649 Quinlan Conf Room: HOAs… They don't cover insurance, right? I was told. 356 01:00:35.810 --> 01:00:49.080 Quinlan Conf Room: when I asked the question. So I can't… don't, don't, don't dig deep on that, because I don't know. My question is… my question is, who pays for that fire insurance for below market rate 357 01:00:49.150 --> 01:01:02.370 Quinlan Conf Room: homeowners when they start skyrocketing, which they are. And State Farm, for one, stopped even selling insurance. And then you have to go on the FAIR Act. 358 01:01:02.510 --> 01:01:09.730 Quinlan Conf Room: You know, to get your insurance at all. If you live in any Fire hazard kind of area. 359 01:01:10.040 --> 01:01:12.570 Quinlan Conf Room: Just asking the question. 360 01:01:12.730 --> 01:01:28.389 Quinlan Conf Room: fire insurance, otherwise known as homeowner's insurance, which I think you usually have to get in order to get a mortgage, and it was… there was a whole big write-up in here about, you're going to consider this, and this, and this, and this, and this, and then you'll do this to it, and then you'll have the fair market rate. 361 01:01:29.000 --> 01:01:33.599 Quinlan Conf Room: mortgage for these folks. I said, well, where is the home insurance in there? 362 01:01:33.900 --> 01:01:50.169 Quinlan Conf Room: because I had heard that the HOA would be negotiating that, and that I only brought it up because that's what I was told, not Nicky. By somebody, not… not Nicky. Somebody said that. So I just wanted to say that I think that's a huge issue. 363 01:01:50.190 --> 01:01:55.489 Quinlan Conf Room: I think it's a huge issue for the city. I think it's a huge issue for our below-market rate program. 364 01:01:55.530 --> 01:02:01.670 Quinlan Conf Room: And that it has to be thought through. And thought through, more than… Sweet. 365 01:02:01.800 --> 01:02:03.180 Quinlan Conf Room: Thinking about it. 366 01:02:03.440 --> 01:02:06.360 Quinlan Conf Room: And I… but I think it's one of the future reasons. 367 01:02:08.210 --> 01:02:17.459 Quinlan Conf Room: Are there areas in Cupertino that fall under the, fire hazard area? I'm sure, yeah. Yes. I'm sure. There is. 368 01:02:18.340 --> 01:02:25.420 Quinlan Conf Room: Where, where, where? Oh, near the… Evelyn Court. Exactly, yeah. Evelyn Court. That area. The Evelyn Court. 369 01:02:25.590 --> 01:02:32.049 Quinlan Conf Room: is a new… do you know where Everett Court is? Yeah, the one on La Dervista. Okay, that falls within the new… 370 01:02:32.390 --> 01:02:38.669 Quinlan Conf Room: high fire hazard risk, and that was one… a lot of people are against that particular 371 01:02:38.690 --> 01:02:43.870 Quinlan Conf Room: project. I think it got approved, that being said… Pardon? 372 01:02:43.880 --> 01:02:56.600 Quinlan Conf Room: Bring that one more canceled. No, I don't think so. I don't think it's been canceled yet. I mean, maybe somebody knows more than I can. I couldn't comment on that one, to be honest. I'm not in the loop for Evelitch, or… 373 01:02:56.600 --> 01:03:09.950 Quinlan Conf Room: Yeah, and that's fine, because we don't need to know all the answers. The thing is that we need to know… They were asking us questions, and I don't know that that one is… and I know that there was city council after city council… Yeah. 374 01:03:09.970 --> 01:03:16.320 Quinlan Conf Room: It was. I thought that was… I thought it was too, but that doesn't mean there isn't, say, maybe a lawsuit going on, or… 375 01:03:16.580 --> 01:03:35.289 Quinlan Conf Room: like that. Lots of stuff happens after things are approved. Sometimes they never actually get built. Yeah, anyway, but because of other things that go on, so… But any fire hazard area will need an approval by the local fire department. Any development in a fire hazard area. Absolutely, and it was. 376 01:03:35.290 --> 01:03:51.699 Quinlan Conf Room: So it's been approved, which means a fire department has determined that in a time of fire, they can safely evacuate Charleston residents. True statement. I'm not saying that there's a lawsuit against it, I'm saying… I'm just saying that it could. 377 01:03:51.700 --> 01:04:02.080 Quinlan Conf Room: Could be. And I think that area… I remember, like, the… I think one of the points that the neighbors had raised was, oh, we couldn't… they can't exit, but now all the streets go out. I don't… anyway. 378 01:04:02.130 --> 01:04:21.050 Quinlan Conf Room: It's beyond our… our goal. We don't even answer, I just… yeah. Are there other cities in the fire zone? I would… yeah, yeah, I'm sure there are other cities. And there's more. More that always have been in the fire zone. Can we go to the public comment period? Oh, yes, we have. 379 01:04:21.110 --> 01:04:39.240 Quinlan Conf Room: Looks like we have no speakers. Okay. Okay. Can we, let, share those two, have a question? Chairs a question? Yeah, with respect to the different tiers, is it income-adjusted? 380 01:04:39.340 --> 01:04:42.769 Quinlan Conf Room: Are the BMR rates income adjusted? Yes. 381 01:04:42.900 --> 01:04:52.850 Quinlan Conf Room: You're talking about, like, rental rates that are charged? Yeah, right. Like, for the very low, it's a lower number versus the moderate. Yeah, yeah, absolutely. So, 382 01:04:53.000 --> 01:04:55.260 Quinlan Conf Room: Rental rates, 383 01:04:56.160 --> 01:05:13.629 Quinlan Conf Room: there's a formula component, but the idea is housing is affordable to you if you're not paying more than a third of your monthly income to your housing. So they would make that an income bracket, basically, based off the AMI. Like, so 30% to 50%, for example, for a very low income, that would constitute 384 01:05:14.250 --> 01:05:32.379 Quinlan Conf Room: just off the top of my head, I think, like, up to, like, $71,000 in Cupertino. So you would take that number, divide it by 12 to get monthly, and then divide that again by 3, and that's the maximum a very low-income rental, for example, could charge. It's still being considered affordable today. 385 01:05:32.530 --> 01:05:35.820 Quinlan Conf Room: And they're all kind of broken down by that. 386 01:05:38.510 --> 01:05:58.369 Quinlan Conf Room: Last comment I asked. So, the consultant, you said there's an RFP out? Yeah, currently out. Currently still out. Currently, so do we know when, we will have… so what is the scope of work determined for the consultant? The scope of work is going to be, number one. 387 01:05:58.420 --> 01:05:59.510 Quinlan Conf Room: Looking at… 388 01:06:00.090 --> 01:06:16.749 Quinlan Conf Room: this, the inclusionary housing requirement, suggesting a bunch of different prototypes for maybe how we could update this to maybe get more very low and low-income housing, right? Or just, you know, maybe develop more in general. And then also, they will be taking a look at 389 01:06:16.750 --> 01:06:28.710 Quinlan Conf Room: Our fee structure, seeing if there is a better methodology to calculate our fees to make sure that we are getting a convinced certain amount of fee to mitigate whatever economic. 390 01:06:29.280 --> 01:06:38.859 Quinlan Conf Room: Yeah. Are they going to answer the question of how effective has this particular manual been? Because I think it's important to know how effective is this one. 391 01:06:39.220 --> 01:06:51.399 Quinlan Conf Room: And then find out what gears within it. As much as I'd like to, right? We have to consider that we are in an ecosystem of a lot of different things, right? Yeah. And so, like. 392 01:06:52.080 --> 01:07:10.320 Quinlan Conf Room: I don't know if I can point to exactly the manual and say, like, and this is the point where we stopped having all the housing because of the manual. If I could… if I could extrapolate on that year and say, like, maybe this… that year was 2020, I can think of something that stopped development that year, right? Or maybe that year was… 393 01:07:10.320 --> 01:07:18.780 Quinlan Conf Room: 2008. I can think of something that's not going there, right? So it's kind of difficult to pick a single year and say, like, and this is where the manual… 394 01:07:18.780 --> 01:07:38.179 Quinlan Conf Room: really started helping, or really started hurting, because we… we… we exist in a larger ecosystem of… That's a really good point. Thank you. I have not thought about the fact that we live in the… this manual lives in a bigger world. Yeah. Can I then ask a separate question that… that, also I… 395 01:07:38.180 --> 01:07:40.560 Quinlan Conf Room: care about, which is on page 30. 396 01:07:40.560 --> 01:07:43.760 Quinlan Conf Room: Alternatives to the big low market rate requirements? 397 01:07:43.970 --> 01:07:50.360 Quinlan Conf Room: And the very last one, it says, provide a plan. 398 01:07:51.040 --> 01:07:54.860 Quinlan Conf Room: One of the options, under an alternative 399 01:07:55.000 --> 01:08:12.050 Quinlan Conf Room: from the contractor, an alternative from the contractor, rather than any of the stuff we've got in our manual. They would suggest an alternative. And one of the alternatives that's in here is to provide a plan for completion of the off-site 400 01:08:12.390 --> 01:08:13.940 Quinlan Conf Room: BMR development. 401 01:08:14.720 --> 01:08:27.110 Quinlan Conf Room: Prior to approval of the market rate project, the affordable housing plan shall include, but not be limited to, the following items. Oh, maybe I shouldn't really need to, I should just be trying to say what it is. 402 01:08:27.370 --> 01:08:30.979 Quinlan Conf Room: What they're saying is that they 403 01:08:31.279 --> 01:08:38.229 Quinlan Conf Room: They are building their market rate stuff, and yeah, they're gonna give you your below market rate stuff, but that's gonna come over here. 404 01:08:38.410 --> 01:08:49.749 Quinlan Conf Room: At a different time. Off-site. There, off-site. This, this schedule Can be done after. 405 01:08:50.270 --> 01:08:53.500 Quinlan Conf Room: They do their market rate, and to me, that's, like, no. 406 01:08:53.630 --> 01:09:01.860 Quinlan Conf Room: When they make that plan, like, for contingency planning. When they make their contingency plan, talking about when they're going to do this. 407 01:09:02.200 --> 01:09:03.780 Quinlan Conf Room: Kind of like… but… 408 01:09:04.410 --> 01:09:19.920 Quinlan Conf Room: But Rise is doing now, RISE is doing now, they are building their below market rate first. I think it should always be built first, because those market rate people are simply not going to do it. And I only know that because it happens in real life, and it happens here in our city. Yeah. 409 01:09:19.939 --> 01:09:27.879 Quinlan Conf Room: We can, we can discuss that one with the consultant to see, maybe, maybe we want to remove the ability to do a contingency plan. I… 410 01:09:28.970 --> 01:09:47.159 Quinlan Conf Room: the one thing I'll caution is, I know this one is also a state-mandated one, the ability to do off-site, and so we want to make sure we don't run afoul of state law by saying we can't, right? So I would… I would… I would say… We can look at it, yeah. Okay. Yeah. 411 01:09:47.160 --> 01:10:02.100 Quinlan Conf Room: Are we going to define what that off-site is? Like, is it, like, within, like, a 1-mile radius, you know, 5-mile radius? That's part of the affordable housing plan they would submit. 412 01:10:02.170 --> 01:10:14.800 Quinlan Conf Room: XYZ company owns two parcels in the city, and so, yes, our development for our market rate housing will be located here, and we want to designate this other site for affordable, and… 413 01:10:14.990 --> 01:10:19.919 Quinlan Conf Room: you know, the typical requirement would be to do the affordable first, and then also, I guess. 414 01:10:20.500 --> 01:10:22.800 Quinlan Conf Room: contingency claim, if for some reason you don't 415 01:10:23.290 --> 01:10:31.869 Quinlan Conf Room: But we'll ask. We'll see what's legally defensible. We'll see what's legally defensible. That's right, yeah, you do have that in there. I understand, legally defensible. Yeah. 416 01:10:32.220 --> 01:10:37.219 Quinlan Conf Room: Okay, do you have any other study sessions before the consultant comes on board, or… 417 01:10:38.240 --> 01:10:44.010 Quinlan Conf Room: This is the study session, but I'm also… my email's eyes open for any shadows. 418 01:10:44.150 --> 01:10:49.299 Quinlan Conf Room: You know, tag a… tag one of our city attorney's office people, what's a brain. 419 01:10:49.640 --> 01:10:56.129 Quinlan Conf Room: Can you… can you… I mean, maybe you can't, but the… how do we factor in the level of wages 420 01:10:56.260 --> 01:10:58.549 Quinlan Conf Room: In this, Schedule B. 421 01:10:59.030 --> 01:11:10.329 Quinlan Conf Room: This says, you know, for office and research, it's $35.48. Yeah. And what… all it says is that the per square… it says per square foot. It doesn't say anything about level of wages. 422 01:11:10.700 --> 01:11:18.850 Quinlan Conf Room: And so I don't know if there's an algorithm that exists by which that $35.48. Yeah. 423 01:11:20.080 --> 01:11:40.309 Quinlan Conf Room: Or how many people? How many people are hired at that higher rate? It's not by how many people are hired. It's assumed that a larger facility will hire more people to staff it. Yeah. But, the way they decide on, like, the amount… the way a wage impacts the demand on housing, that's kind of their market analysis that they provide, right, that the consultant does. 424 01:11:40.310 --> 01:11:49.110 Quinlan Conf Room: So I don't have the math in front of me, but there… it is… it is a formula for, like, you know, when you introduce new renters into the market, how much that shifts demand. 425 01:11:49.360 --> 01:12:03.460 Quinlan Conf Room: Right, but shouldn't we mention it, then? That it's something that we factor in? On the fee schedule? Sure. We try to keep the fee schedule kind of concise for the people who are paying them, because, like, that doesn't quite help, like, a developer 426 01:12:03.570 --> 01:12:08.230 Quinlan Conf Room: calculate how much they need to pay us. That's kind of left for the study. 427 01:12:08.710 --> 01:12:14.350 Quinlan Conf Room: What's a warehouse? A warehouse? Yeah, it's $50… $49.29. Is there… 428 01:12:14.560 --> 01:12:27.340 Quinlan Conf Room: fee that they pay to build a warehouse. Do you know what that is? Well, per square footage, right? So, they would… they would be paying, like… No, but what is the warehouse? What would be a warehouse? If we looked around our city. 429 01:12:28.370 --> 01:12:42.630 Quinlan Conf Room: what would be a warehouse? Would it be the public storage kind of thing? A data center could be a warehouse. A data center could be a warehouse. What'd you say? A data center would be a warehouse? No, no, yes, I'm talking about right this very minute, because this is already… see, this is in our old-fashioned 430 01:12:42.660 --> 01:12:53.180 Quinlan Conf Room: one, which is based on smart footage as opposed to AI, which you should be able to move it, but anyway. So I'm just wondering… Currently, in our, in our, I think, Title 19… 431 01:12:53.980 --> 01:13:12.799 Quinlan Conf Room: 19.030, something like that. There's a whole section called definitions that, like, where we define each and every single use case. I'm gonna go on a limb here and guess, because we're Cupertino, we incorporated data warehouse as… under the definition of warehouse. Data warehouse. And that's why we… 432 01:13:13.040 --> 01:13:21.839 Quinlan Conf Room: pulled out a separate definition, right, for self- storage, right? So that's a different… Oh, I see, I do see that. Yeah, that's a… The building code defined… Yeah. 433 01:13:21.840 --> 01:13:38.840 Quinlan Conf Room: Building code defines, every type of building, what they are, what the occupancy category classification is for every building. I was thinking of just an example, like, if you just go down the corner and around the street, you'll find… but there you go. There's a warehouse full of… 434 01:13:38.840 --> 01:13:40.290 Quinlan Conf Room: Stuff, whatever it is. 435 01:13:40.450 --> 01:13:57.209 Quinlan Conf Room: But you're thinking that this might be a data warehouse? I think it might include data warehouse. Yeah, I'm thinking that it… Because we do have… Which might explain the high, you know, the highest consequence. Okay, well, this has been very illuminating. Any questions? 436 01:13:57.340 --> 01:14:10.830 Quinlan Conf Room: I have one last question. Yes, absolutely. When it comes to the developers, does this mandate, whether city, state-governed, usually deter? 437 01:14:10.830 --> 01:14:25.100 Quinlan Conf Room: developers, or they see such a tremendous ROI on these projects that this is just a part of doing business? Well, ideally, the whole idea behind doing this Nexus study is to make sure that we're not just throwing out a number that 438 01:14:25.100 --> 01:14:36.700 Quinlan Conf Room: that ends up becoming a government constraint for development, right? Because that's the idea with running these prototypes, so that we can make sure that the kind of housing that we want to see is still penciled out. 439 01:14:36.740 --> 01:14:42.620 Quinlan Conf Room: So to speak. Yeah. So, ideally, if we do it right, no, there shouldn't be. Yeah. 440 01:14:44.470 --> 01:14:58.769 Quinlan Conf Room: We move on to the next agenda item? Wait a minute. No? That was her last question. Okay, sorry. I don't recall… Okay, so, yeah. I can close, but at the same time, I spent a lot of time dealing with these questions. 441 01:14:58.770 --> 01:15:06.310 Quinlan Conf Room: Our goals, right now, under HE2.3.3 that you mentioned, Greg? Yeah. That's 200 below market rate units. 442 01:15:06.380 --> 01:15:15.940 Quinlan Conf Room: Over 8 years. Yeah. Okay. And this one, the next one, 82.3.9, facilitate the development of 500 units. Yeah. 443 01:15:16.110 --> 01:15:19.269 Quinlan Conf Room: In that time period, I assume. 444 01:15:19.510 --> 01:15:20.859 Quinlan Conf Room: Anyway, that's a lot. 445 01:15:21.040 --> 01:15:31.199 Quinlan Conf Room: That's a lot, and so I guess your question does come into play, which is, does this… does this suppress people coming in and saying they want to build here, or… 446 01:15:31.210 --> 01:15:45.250 Quinlan Conf Room: Now, so, for context, that's… that's from the housing element. Yes, it is. And we… we created quantifiable objectives for each of our strategies as a way to, like, kind of set a baseline for, like, what 447 01:15:45.700 --> 01:16:01.320 Quinlan Conf Room: what we would consider, like, the best implementation of any of the strategies, right? So, like, theoretically, this is just an example, of course we would never do this, but let's say we were to recommend a very, very minimal change to the program to the point where, essentially. 448 01:16:01.320 --> 01:16:17.949 Quinlan Conf Room: nothing, nothing's different, and there are no additional low-income housing, right? Well, we would fail our own matrix, right, that we set in the housing element, and so that would be an unacceptable recommendation, right? Yeah. Let's just to hold ourselves accountable, basically. Yeah. 449 01:16:18.100 --> 01:16:18.980 Quinlan Conf Room: Lucky. 450 01:16:19.480 --> 01:16:20.779 Quinlan Conf Room: That's good. 451 01:16:20.990 --> 01:16:25.429 Quinlan Conf Room: Okay. I guess I will say… oh, let me just read this book. 452 01:16:27.190 --> 01:16:28.340 Quinlan Conf Room: That would be going. 453 01:16:32.670 --> 01:16:47.820 Quinlan Conf Room: Okay, thank you. I'm finished. If you guys, are finished, you can, motion, I guess, to close the session. Perfect. I have a motion to close the discussion. Oh, you don't need a motion? 454 01:16:48.090 --> 01:16:51.220 Quinlan Conf Room: Just kidding, no motion. No motion, no. 455 01:16:51.410 --> 01:16:55.640 Quinlan Conf Room: Next agenda item, staff and commission reports. 456 01:16:56.420 --> 01:17:14.790 Quinlan Conf Room: I, had one, one, update. We had a mayor meeting on July 15th. We were supposed to go over all the updates from the previous, all the Commission meetings, but then it was decided to do just, the Crest Award. 457 01:17:14.800 --> 01:17:27.630 Quinlan Conf Room: nomination, and yeah, so there were a lot of, nominations. We went over all the nominees and their accomplishments, and we all voted. Very excited. 458 01:17:27.630 --> 01:17:52.540 Quinlan Conf Room: Sometime in October, I guess. It's very exciting, so… That was a fun one. I remember attending last year. It was just so many volunteers, and very inspiring. I know, it is, it is. And then, what's more inspiring is the young kids, you know? It's like, it's just amazing. If you guys can, I recommend you come out there, right? That dinner is basically 459 01:17:52.540 --> 01:18:03.850 Quinlan Conf Room: thanking you all for your service. So, it's for you guys, right? It's for us. Yeah. Yeah, that's in October. The commissioner's dinner? Yeah. That's when, that's when they give out this to, yeah. 460 01:18:03.850 --> 01:18:14.419 Quinlan Conf Room: Yeah, it's a blessing. Of course, yeah. We'll try to make sure Commissioner Jindy gets a certificate. Yeah. Oh, yeah. Oh, just so, yeah, you both know, right? 461 01:18:14.830 --> 01:18:23.760 Quinlan Conf Room: Commissioner Zendi is, resigning. She's a week out of, cupertino, yeah. Commissioner Zendi is resumed, yeah. 462 01:18:23.830 --> 01:18:41.179 Quinlan Conf Room: Commissioner Jinji is resigning. Oh, I'm so sorry. That's why she's not here. I couldn't hear anything you said. That was copied to us. To us, but not to… that's why I'm just letting… So, yeah, she's moving out of, how to be nominated Mayor Commissioner. 463 01:18:42.250 --> 01:18:53.250 Quinlan Conf Room: So yeah, the recruitment, we've let the clerk's office know, and they'll be starting the recruitments once they've got the… got the go-ahead, I think, from… 464 01:18:53.430 --> 01:18:56.370 Quinlan Conf Room: City leadership. Did I get that right, Lindsay? 465 01:18:57.050 --> 01:19:08.310 Quinlan Conf Room: Sorry, one more time? You let them know that there's a vacancy right now in the Housing Commission, and the recruitment will start pretty much once they get the go-ahead, so let's see where you should. Yeah, I understand. Yeah. So hopefully, could we have one by… 466 01:19:08.310 --> 01:19:33.280 Quinlan Conf Room: September 1st? I mean, I hope so, we'll see. We'll see. They have to get… they actually have to get, vetted and confirmed by City Council, and I think City Council is currently on vacation. Yeah, that's right, until September 1st. So, maybe. Like, we'll see, yeah. But the four of us can do it. You guys got this… I just want to talk about this one, article. 467 01:19:33.280 --> 01:19:34.770 Quinlan Conf Room: So… 468 01:19:34.770 --> 01:19:58.379 Quinlan Conf Room: It was in the Cupertino career on July 10th, and this is what I was referring to earlier with respect to Santa Clara… San Mateo, rather, and Contra Costa having, like, the lower, lower, homelessness rates compared to, like, the city, like, Oakland, right? So it's, like, the opposite ends of the spectrum. And really, this is… this particular, one doesn't… 469 01:19:58.380 --> 01:20:20.839 Quinlan Conf Room: necessarily relate back to Cupertino specifically, but just talks about how the city draws more homelessness for various reasons, you know, more access to public transport and resources and things like that, mobility. There's also more encampments, but, you know, when I… what really stood out to me from this article is really the San Mateo, example, which is 470 01:20:20.840 --> 01:20:45.220 Quinlan Conf Room: they have more coordinated effort to prevent people from becoming homeless in the first place, and they allude to the county center for, Center on Homelessness, which really consolidates all of these efforts that we hear talk about, but I'm actually not familiar enough to know whether, we have, something like that, which is, you know, that center 471 01:20:45.370 --> 01:20:57.219 Quinlan Conf Room: On homelessness. Kind of, yes. Yeah. We attended that whole, thing, Santa Clara County, they have a whole, section. Yes, of course, addressing the… 472 01:20:57.320 --> 01:21:11.709 Quinlan Conf Room: Yeah, they continue to care. Continuous care. Yeah. Because, you know, like… It's not successful. Right, yeah. Because they talk about, like, one centralized, unit or governing body that does 473 01:21:11.730 --> 01:21:23.810 Quinlan Conf Room: lower utility rate plan, getting connected with the right legal services, health services, and, you know, and, you know, rental assistance, all of that. So, I just… 474 01:21:23.980 --> 01:21:39.909 Quinlan Conf Room: I wonder if we can maybe make our resources more accessible somehow? Maybe it already is, I just don't know if it is. Definitely. When it comes to, like, homelessness, definitely, like, an ounce of prevention is worth a pound of cure. 475 01:21:40.030 --> 01:21:43.959 Quinlan Conf Room: Like, something about, like, the retention rate for, like, a homeless prevention program. 476 01:21:44.480 --> 01:22:03.180 Quinlan Conf Room: It's so much better, right, than it is when you bring someone back from the streets who's been out there for years. And definitely, when we were talking about anti-displacement, something that was, like, in the subtext of that is it's also homeless prevention, right? When you prevent someone from being displaced, you're also preventing them from becoming homeless. The good news is. 477 01:22:04.510 --> 01:22:12.999 Quinlan Conf Room: we tried putting that on the city work plan, and then we were also making capacity for those kinds of programs in our own funding program, so… 478 01:22:13.420 --> 01:22:31.190 Quinlan Conf Room: to be seen, it may be coming back, and, and yeah, we may have things to report on that. Yeah. Am I able to just share? Yeah, yeah, absolutely, yeah. This cut, cut part of the article, but at least it can, give us a little glimpse. 479 01:22:31.440 --> 01:22:39.279 Quinlan Conf Room: And we can maybe, like, Google the article for the bottom part, that cutout? Sure, yeah. 480 01:22:40.550 --> 01:22:45.190 Quinlan Conf Room: The Cindy Cupertino has the… all these… 481 01:22:45.450 --> 01:22:56.090 Quinlan Conf Room: programs, right? Like, I mean, we… here, come on, people who come in West Valley, and for the legal. It's… the… the question I've always had is. 482 01:22:57.180 --> 01:23:03.460 Quinlan Conf Room: how many people know about it? Yes. Right? Yeah. So… Yeah. 483 01:23:04.110 --> 01:23:22.510 Quinlan Conf Room: I personally don't know. I know about these things because I'm here, and I'm hearing about them. So that is my question. I don't know the answer to it, so if, if the city could do more outreach, okay, maybe make it, you know, like, again. 484 01:23:22.760 --> 01:23:45.410 Quinlan Conf Room: hearing about all these kids, high school kids, doing all this amazing thing, right? Go talk to the high school students, you know? Hey, we want you guys to do outreach for the city, you know? This is one of the opportunities you can have, you know, go and spread the news, you know, to go to the senior center, or knock on doors, I don't know, you know, some form of outreach. 485 01:23:45.850 --> 01:23:57.429 Quinlan Conf Room: just so people know that this is available. Yeah, that it's available. So that's, that's one. I think even highlighting it in our local newspaper, right? 486 01:23:57.760 --> 01:24:00.540 Quinlan Conf Room: Yeah, some folks actually pick it up and visit it. 487 01:24:00.640 --> 01:24:15.599 Quinlan Conf Room: But you're reading. Which book paper is this? Cuperture? Cupertino Courier. Cupertino Courier, okay, because there was also an Outlook… oh, yes, an Outlook magazine Thomas Monthly or something, but I wanted to also, 488 01:24:15.610 --> 01:24:30.569 Quinlan Conf Room: say that when… that's why we're gonna misleader. She had a great lot of input, on the bull market rate, because she was living the bull market rate, so she understood how that works. And one of the things she mentioned, Nicky, was that, Meeting? 489 01:24:30.570 --> 01:24:37.090 Quinlan Conf Room: somewhere. And it was a group that came together to talk about these kind of issues. 490 01:24:37.390 --> 01:24:40.990 Quinlan Conf Room: And… I… Don't… 491 01:24:41.010 --> 01:24:56.689 Quinlan Conf Room: now remember anything about it, I'm sorry to say, but I don't know if you do, because we, the city, apparently, are part of making that happen, which is a form of outreach to various people who might need that. 492 01:24:56.690 --> 01:25:05.059 Quinlan Conf Room: So, so yes, thank you for bringing it up, but it is useful to find out that not that many people, except those who are 493 01:25:05.140 --> 01:25:06.190 Quinlan Conf Room: 14. 494 01:25:06.270 --> 01:25:08.640 Quinlan Conf Room: may necessarily know. 495 01:25:08.700 --> 01:25:23.119 Quinlan Conf Room: Definitely. Because it doesn't… because it doesn't affect them. You know, if it doesn't affect you, sometimes you read it, and then it's gone, and you're more back into what's affecting your life, whatever it is. I mean, there's lots of things going on in anybody's life. 496 01:25:23.130 --> 01:25:34.639 Quinlan Conf Room: So, we want to avoid discussing this too much, because we're starting to run up against a Brown Act issue, because this item is not agendized. Oh, okay. Yeah. Okay, that's a good point. 497 01:25:35.180 --> 01:25:46.980 Quinlan Conf Room: All right, can we adjourn the meeting? No. Oh, okay. Should we do a future agenda setting? Maybe this is one of the topics we could set. 498 01:25:47.790 --> 01:25:49.839 Quinlan Conf Room: Sure. That's some future agendas? 499 01:25:49.960 --> 01:25:58.019 Quinlan Conf Room: Talking about outreach events. Outreach of, of city services for, sure. 500 01:25:58.560 --> 01:26:05.889 Quinlan Conf Room: people who need them, low-income, extremely low-income people. Yes, we can, we can have that feature. I got to go, exactly. Okay. 501 01:26:06.570 --> 01:26:10.800 Quinlan Conf Room: Do we need to have a motion for that, or… Nope, no motion's good. Okay. 502 01:26:11.200 --> 01:26:24.140 Quinlan Conf Room: For adjournment, do we need a motion, or… No. Okay. Will you close the meeting? Time's at 7.01. Meeting closed. Thank you. Thank you. Isn't that funny? You said it, but I can'.