Loading...
HomeMy WebLinkAboutHC Searchable Packet for 09-24-2026CITY OF CUPERTINO HOUSING COMMISSION AGENDA 10185 North Stelling Road, Quinlan Conference Room and via Teleconference Thursday, September 24, 2026 5:30 PM IN-PERSON AND TELECONFERENCE / PUBLIC PARTICIPATION INFORMATION OPTIONS TO OBSERVE: Members of the public wishing to observe the meeting may do so in one of the following ways: 1) Attend in person at Quinlan Community Center, Conference Room, 10185 N. Stelling Road. 2) Watch a live stream online at https://youtube.com/@cupertinocitycommission. 3) Attend in person at a remote Teleconference Location noticed pursuant to Gov. Code 54953(b)(2), which location, if noticed, would be stated on the cover page of this agenda. OPTIONS TO PARTICIPATE AND COMMENT: Members of the public wishing to address the Housing Commission may do so in the following ways: 1) Appear in person at Quinlan Community Center, Conference Room, 10185 N. Stelling Road: a. During “Oral Communications”, the public may comment on matters not on the agenda, and for agendized matters, the public may comment during the public comment period for each agendized item. b. Speakers are requested to complete a Speaker Card. While completion of Speaker Cards is voluntary and not required to attend the meeting or provide comments, it is helpful for the purposes of ensuring that all speakers are called upon. c. Speakers must wait to be called and may begin speaking when recognized by the Chair. d. Speakers are limited to three (3) minutes each. However, the Chair may reduce the speaking time depending on the number of people who wish to speak on an item. A speaker representing a group of 2 to 5 or more people who are present may have up to 2 minutes per group member, up to 10 minutes maximum. e. Please note that due to cyber security concerns, speakers are not allowed to connect any personal devices to any City equipment. However, speakers that wish to share a document (e.g. presentations, photographs or other documents) during oral comments may do so by: i. E-mailing the document to housingcommission@cupertino.gov by 2:00 p.m. and staff will advance the slides/share the documents during your oral comment. Page 1 1 HC 09-24-2026 1 of 74 Housing Commission Agenda September 24, 2026 2) Written communications as follows: a. E-mail comments to housingcommission@cupertino.gov. b. Regular mail or hand delivered addressed to the: Cupertino Housing Commission, City Hall, 10300 Torre Avenue, Cupertino, CA 95014 c. Comments addressed to the Housing Commission received by 3:00 p.m. on the day of the meeting will be included in written communications published and distributed before the beginning of the meeting. d. Comments addressed to the Housing Commission received after the 3:00 p.m. deadline, but through the end of the Commission meeting, will be posted to the City’s website by the end of the following business day. 3) Teleconference in one of the following ways: a. Online via Zoom on an electronic device (Audio and Video): Speakers must register in advance by clicking on the link below to access the meeting: https://cityofcupertino.zoom.us/webinar/register/WN_p5iWuz8GTOui0xsMOuQtZw i. Registrants will receive a confirmation email containing information about joining the webinar. ii. Speakers will be recognized by the name they use for registration. Once recognized, speakers must click ‘unmute’ when prompted to speak. iii. Please read the following instructions about technical compatibility carefully: One can directly download the teleconference (Zoom) software or connect to the meeting in their internet browser. If a browser is used, make sure the most current and up-to-date browser, such as the following, is used: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality may be disabled in older browsers, including Internet Explorer. b. By Phone (Audio only): No registration is required in advance and speakers may join the meeting as follows: i. Dial 669-900-6833 and enter WEBINAR ID: 825 6247 9605 ii. To “raise hand” to speak: Dial *9; When asked to unmute: Dial *6 iii. Speakers will be recognized to speak by the last four digits of their phone number. c. Online via the teleconferencing device (Audio and Video) being used to provide access to the meeting from a remote Teleconference Location noticed pursuant to Gov. Code 54953(b) (2), which location, if noticed, would be stated on the cover page of this agenda. i. Speakers are required to notify the City Clerk via email to cityclerk@cupertino.gov prior to noon on the date of the meeting during which they plan to participate and comment from the remote location noticed to ensure the City Clerk is prepared to accept their comment. ii. If the teleconferencing device malfunctions impeding access to the meeting from the Page 2 2 HC 09-24-2026 2 of 74 Housing Commission Agenda September 24, 2026 remote location, the speaker may alternatively participate via the other options for remote participation provided above. ROLL CALL APPROVAL OF MINUTES 1.Subject: Approval of the August 13, 2026 Housing Commission Minutes. Recommended Action: Approve the August 13, 2026 Housing Commission Minutes. A - Draft Minutes POSTPONEMENTS ORAL COMMUNICATIONS This portion of the meeting is reserved for persons wishing to address the Commission on any matter within the jurisdiction of the Commission and not on the agenda. Speakers are limited to three (3) minutes. In most cases, State law will prohibit the Commission from making any decisions with respect to a matter not on the agenda. OLD BUSINESS - None NEW BUSINESS 2.Subject: Informational presentation on the Program Year (PY) 2025 Community Development Block Grant (CDBG) Consolidated Annual Performance and Evaluation Report (CAPER). Recommended Action: Approve submission of the PY 2025 CAPER to the United States Department of Housing and Urban Development (HUD). Staff Report A - Draft Cupertino PY 2025 CDBG CAPER 3.Subject: Progress update on policies and programs for tenant protections and anti-displacement for renters in market rate units; proposal of draft eviction protection ordinance. Recommended Action: Receive presentation and recommend approval of an eviction protection policy to City Council for adoption. Staff Report A - Draft Resolution B - Letter from the Chair of the Housing Commission to City Council STAFF AND COMMISSION REPORTS FUTURE AGENDA SETTING Page 3 3 HC 09-24-2026 3 of 74 Housing Commission Agenda September 24, 2026 4.Subject: Upcoming Draft Agenda Items A - Upcoming Future Agenda Items ADJOURNMENT In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend this meeting who is visually or hearing impaired or has any disability that needs special assistance should call the City Clerk's Office at 408-777-3223, at least 48 hours in advance of the meeting to arrange for assistance. In addition, upon request in advance by a person with a disability, meeting agendas and writings distributed for the meeting that are public records will be made available in the appropriate alternative format. Any writings or documents provided to a majority of the members after publication of the agenda will be made available for public inspection. Please contact the City Clerk’s Office in City Hall located at 10300 Torre Avenue, Cupertino, California 95014, during normal business hours. IMPORTANT NOTICE: Please be advised that pursuant to Cupertino Municipal Code section 2.08.100 written communications sent to the City Council, Commissioners or staff concerning a matter on the agenda are included as supplemental material to the agendized item. These written communications are accessible to the public through the City website and kept in packet archives. Do not include any personal or private information in written communications to the City that you do not wish to make public, as written communications are considered public records and will be made publicly available on the City website. Page 4 4 HC 09-24-2026 4 of 74 CITY OF CUPERTINO Agenda Item Subject: Approval of the August 13, 2026 Housing Commission Minutes. Approve the August 13, 2026 Housing Commission Minutes. CITY OF CUPERTINO Printed on 9/18/2026Page 1 of 1 5 HC 09-24-2026 5 of 74   DRAFT MINUTES  HOUSING COMMISSION  Thursday, August 13, 2026      At 5:35 p.m. Chair Usha Narayan called the special Housing Commission meeting to order at the  Quinlan Conference Room, 10185 North Stelling Road and via teleconference.    ROLL CALL    Present: Chair Usha Narayan, Vice Chair Jasmine Jose (arrived at 6:00 p.m.) and Commissioners  Connie Cunningham and Ram Sripathi. Absent: None.    APPROVAL OF MINUTES    1. Subject: Approval of the May 28, 2026 Housing Commission Minutes.  Recommended Action: Approve the May 28, 2026 Housing Commission Minutes.    MOTION: Cunningham moved and Narayan seconded to approve the May 28, 2026  Housing Commission Minutes. The motion passed with the following vote: Ayes: Narayan,  Cunningham and Sripathi. Noes: None. Abstain: None. Absent: Jose.     POSTPONEMENTS – None    ORAL COMMUNICATIONS – None    CONSENT CALENDAR – None    OLD BUSINESS – None    NEW BUSINESS – None    STUDY SESSION    2. Subject: Study session to examine the City’s Below Market Rate (BMR) Housing  Mitigation Program Procedural Manual (Housing Mitigation Manual).  Recommended Action: Receive presentation on the Housing Mitigation Program  Manual, Inclusionary Housing Requirements, and BMR Fee.    Written Communications for this item included a staff presentation.     Senior Housing Coordinator Nicky Vu gave a presentation.   6 HC 09-24-2026 6 of 74 Housing Commission   August 13, 2026  Commissioners asked questions which staff responded to.     Chair Narayan opened the public comment period and, seeing no one, closed the public  comment period.    The Commission received the presentation.    STAFF AND COMMISSION REPORTS    Chair Narayan reported on the Mayor’s Meeting, the upcoming CREST Awards and the  resignation of Commissioner Xhindi.    Commissioner Jose reported on an article in the Cupertino Courier.    FUTURE AGENDA SETTING      Commissioners added the following future agenda items.     Outreach of City services for low‐income people (Narayan)    ADJOURNMENT    At 7:01 p.m. Chair Narayan adjourned the special Housing Commission meeting.     Minutes prepared by:      Lindsay Nelson, Administrative Assistant        7 HC 09-24-2026 7 of 74 CITY OF CUPERTINO Agenda Item Subject: Informational presentation on the Program Year (PY) 2025 Community Development Block Grant (CDBG) Consolidated Annual Performance and Evaluation Report (CAPER). Approve submission of the PY 2025 CAPER to the United States Department of Housing and Urban Development (HUD). CITY OF CUPERTINO Printed on 9/18/2026Page 1 of 1 8 HC 09-24-2026 8 of 74 HOUSING COMMISSION STAFF REPORT September 24, 2026 Subject Informational presentation on the Program Year (PY) 2025 Community Development Block Grant (CDBG) Consolidated Annual Performance and Evaluation Report (CAPER). Recommended Action Approve submission of the PY 2025 CAPER to the United States Department of Housing and Urban Development (HUD). Discussion The United States Department of Housing and Urban Development (HUD) annually allocates grants such as CDBG to local jurisdictions for community development activities. Cupertino is one of nine entitlement jurisdictions within Santa Clara County. Jurisdictions typically must have a population of 50,000 or more to qualify as an entitlement jurisdiction that receives grant funding directly from HUD. Entitlement grants are largely allocated on a formula basis based on several objective measures of community needs including the extent of poverty, populations, housing overcrowding, age of housing, and extent of population growth lag in relationship to other metropolitan areas. As a requirement to receive these entitlement grants, Title I of the National Affordable Housing Act mandates that jurisdictions prepare a five-year Consolidated Plan, Annual Action Plan, and a CAPER. PY 25-26 funding recommendations were approved by the City Council on April 15, 2025. The PY 2025-2030 CDBG Consolidated Plan and 2025-2026 Annual Action Plan was adopted by Housing Commission on May 22, 2025. PY 2025 CDBG CAPER The CAPER is an annual document that outlines the progress the jurisdiction has made in carrying out its strategic plan and its Annual Action Plan. The CAPER is an overview of major initiatives and highlights that were proposed and executed throughout the program year. The CAPER consists of specific program narratives, an assessment of annual performance, and an assessment of progress toward meeting goals and objectives contained in the Consolidated Plan. The PY 2025 CAPER (Attachment 1) covers the City’s CDBG accomplishments from July 1, 2025, to June 30, 2026, and represents the first year of the 2025-2030 Consolidated Plan. 9 HC 09-24-2026 9 of 74 Per HUD regulations, the City is required to make the CAPER available for public comment for a minimum of fifteen days. The 2025 CAPER was made available to the public at www.cupertino.org/housing and the City Clerk’s office from September 8 to September 24, 2026. No public comments have been received. The final CAPER will be submitted to HUD by the September 28, 2026, deadline. 2025-26 CDBG Funding PY 2025 CDBG funding allocations are noted on the table below. Applicant Agency Funded Expended Administration CDBG Public Services CDBG Capital/Housing Projects TOTAL: $385,026.37 $391,361.44 2025-26 CDBG Accomplishments The City funded two CDBG public services for seniors and emergency needs, one single-family home rehabilitation grant, and Mary Avenue infrastructure and facility upgrades. It also used PY 2025 funds for a senior center fire alarm project originally funded in PY 2023 and completed in June 2026 by the Public Works Department. These activities served 117 people: 91 extremely low- income, 18 very low-income, 5 low-income, and 3 moderate-income. Sustainability Impact Submittal of the PY 2025 CDBG CAPER does not result in a sustainability impact. Fiscal Impact Submittal of the PY 2025 CDBG CAPER does not have a fiscal impact. California Environmental Quality Act The PY 2025 CDBG CAPER is not a project subject to the California Environmental Quality Act (CEQA). 10 HC 09-24-2026 10 of 74 ______________________________________________________________________________ Prepared by: Evelin Meza, Assistant Housing Coordinator Reviewed by: Nicky Vu, Senior Housing Coordinator Approved for Submission by: Benjamin Fu, Director of Community Development Attachments: A – PY 2025 CDBG CAPER 11 HC 09-24-2026 11 of 74 CAPER 1 OMB Control No: 2506-0117 (exp. 09/30/2021) City of Cupertino Consolidated Annual Performance Evaluation Report (CAPER) Program Year 2025 (July 1, 2025 – June 30, 2026) Public Noticing of 2025 CAPER: Newspaper Ad Published in the Cupertino Courier on August 21, 2026 Draft CAPER posted on the City’s website on September 4, 2026 Public Comment Period: September 8 – September 24, 2026 Housing Commission held on September 24, 2026 at 5:30 pm Contact Information: City of Cupertino, Housing Division Nicky Vu, Senior Housing Coordinator NickyV@cupertino.gov The City of Cupertino will provide alternative accessible formats for this document upon request. If you need this document in an alternative format such as large print, Braille, audiotape, or computer disc, please contact the City at the contact information listed above. The CAPER can also be translated into other languages upon request, please use the contact information listed above. 12 HC 09-24-2026 12 of 74 CAPER 2 OMB Control No: 2506-0117 (exp. 09/30/2021) Introduction The City of Cupertino receives annual U.S. Department of Housing and Urban Development (HUD) funding for the Community Development Block Grant (CDBG) program. Funding through the CDBG program is a key component to organizations serving households at or below 80% of area median income (AMI) in the City. As demonstrated in this Consolidated Annual Performance and Evaluation Report (CAPER), CDBG funds have been a critical funding source for the rehabilitation of affordable rental units, services of elderly and disabled seniors, case management services for low-income households to prevent homelessness, and minor home repairs to address health and safety concerns for low-income households. The City’s CAPER serves as a report to HUD regarding the outcomes of the goals and objectives with resources made available through the CDBG program and allocated in the Program Year (PY) 2025 Annual Action Plan (AAP) and the 2025-2030 Consolidated Plan for Housing and Community Development (Con Plan). PY 2025 is the first year of the 2025-2030 Consolidated Plan, and the City will be reporting on its progress in meeting the goals and objectives outlined in this plan. As noted throughout the report, despite the challenges presented by funding delays and administrative shutdown of the federal government, the City is making progress towards achieving its five-year goals. 13 HC 09-24-2026 13 of 74 CAPER 3 OMB Control No: 2506-0117 (exp. 09/30/2021) CR-05 - Goals and Outcomes Progress the jurisdiction has made in carrying out its strategic plan and its action plan. 91.520(a) This could be an overview that includes major initiatives and highlights that were proposed and executed throughout the program year. The City of Cupertino is the recipient of federal Community Development Block Grant (CDBG) funding from the United States Department of Housing and Urban Development (HUD). HUD provides these funds to the City on an annual basis for projects and activities that benefit low- and moderate-income individuals and families. As a recipient of these funds, the City is required to prepare a five-year strategic plan called a Consolidated Plan (Con Plan). The Con Plan identifies housing and community needs for low- and moderate-income persons and areas within the City. It then identifies and prioritizes resources to address these needs and establishes annual goals and objectives to meet them. The City prepares a plan prior to the start of each program year called the Annual Action Plan (AAP). The AAP lists specific steps that the City will take in the coming year to meet the goals and objectives identified in the Con Plan. After the end of the program year, the City prepares the CAPER to document the City's overall progress in carrying out the priority projects identified in the five-year Con Plan and the AAP. The City of Cupertino’s Program Year (PY) 2025 CAPER covers July 1, 2025 - June 30, 2026, which is the first year of the 2025-30 Con Plan cycle. This CAPER has been prepared to meet HUD’s requirements for annual performance evaluation and includes a summary of the activities performed during PY 2025, the amount of funds allocated to those activities, and the number of low- and moderate-income persons and households who were assisted. The 2025 CAPER also documents the City’s cumulative efforts toward meeting 2025-30 Con Plan goals, contains a summary of public comments received by the City during a 15-day comment period held from September 9 – September 24, 2026, and includes reports generated by HUD’s Integrated Disbursement and Information System (IDIS). For PY 2025, the City of Cupertino received $354,559 in CDBG entitlement funds from HUD, receipted $7,944 in program income, and had $22,523.37 of prior year unexpended funds, for a total of $385,026.37 in program funds. During PY 2025, administrative shutdown of the federal government and funding delays impacted program delivery of the City’s CDBG funded programs, leading to employee turnover and service delays. The City’s major accomplishments for PY 2025 include: • Funding health and safety repairs for 4 extremely low- and moderate-income senior homeowners • Providing social services to 100 low-income individuals to prevent homelessness 14 HC 09-24-2026 14 of 74 CAPER 4 OMB Control No: 2506-0117 (exp. 09/30/2021) • Providing a specialized care program for 13 elderly residents of the City • Funded infrastructure improvements for the sidewalk, curb, gutter, ramp, and bike lane improvements related to the construction of the Mary Ave affordable housing project. The City of Cupertino supplements CDBG funding with local and state (BMR AHF, HSG, County District 5, and PLHA) sources. These funds support similar programs that follow the CDBG goals and are reported in the outcomes. • General Fund HSG (Catholic Charities, Senior Adults Legal Assistance, West Valley Community Services Haven to Home) • Below Market Rate Affordable Housing Fund (Project Sentinel, Charities Housing – Mary Ave, Eden Housing – Wolfe Road) • County District 5 Inventory Grant (Maitri) • Permanent Local Housing Allocation (PLHA) (Charities Housing – Mary Ave) These programs were not CDBG funded, but they helped further the City’s CDBG goals and are reflected in the total outcomes measured below. Comparison of the proposed versus actual outcomes for each outcome measure submitted with the consolidated plan and explain, if applicable, why progress was not made toward meeting goals and objectives. 91.520(g) Categories, priority levels, funding sources and amounts, outcomes/objectives, goal outcome indicators, units of measure, targets, actual outcomes/outputs, and percentage completed for each of the grantee’s program year goals. Goal Category Source / Amount Measure – Strategic Strategic Plan Complete – Program Program Year Complete Affordable Rental Unit Construction Affordable Housing $4,083,200 PLHA: $908,683 Rental Housing Constructed Household Housing Unit 289 0 0% 289 0 0% 15 HC 09-24-2026 15 of 74 CAPER 5 OMB Control No: 2506-0117 (exp. 09/30/2021) Frail Elderly/Elderly Services Non-Homeless Special Needs Non-Housing Community Development CDBG: $16,800 HSG: $29,000 activities other than Low/Moderate Income Housing Benefit Persons Assisted 295 105 35% 59 105 177% Homeowner Rehabilitation Affordable Housing CDBG: $107,500 Housing Rehabilitated Household Housing Unit 35 4 11% 7 4 57% Administration Administration $70,900 Other Other 5 1 20.00% 1 1 100.00% Services for Low-Income Families and Homeless Population Homeless Non-Housing Community Development $37,200 HSG: $100,000 County: $25,000 BMR AHF: $50,000 Homelessness Prevention Persons Assisted 1,140 259 22% 228 259 113% Community Development Community Development Affordable CDBG: $152,626.37 Rental Housing Constructed Public Facilities Upgraded Housing Unit 40 0 0% 0 0 0% Public Facility Improvement 1 1 100.00% 1 1 100.00% Table 1 - Accomplishments – Program Year & Strategic Plan to Date Assess how the jurisdiction’s use of funds, particularly CDBG, addresses the priorities and specific objectives identified in the plan, 16 HC 09-24-2026 16 of 74 CAPER 6 OMB Control No: 2506-0117 (exp. 09/30/2021) giving special attention to the highest priority activities identified. As indicated in the 2025-30 Con Plan and PY 2025 AAP, the highest priorities for the City are as follows: • Housing: Increasing the supply and condition of affordable housing. • Homelessness: Stabilizing persons at-risk of and experiencing homelessness through housing solutions, and facilitation of supportive services including mental health and addiction recovery services. • Community development: Improve neighborhood safety and quality through neighborhood cleanups, street lighting and park improvements, bolster/create public space for senior activities, and food pantries. • Economic Development: Provide more opportunities for resident workforce development and/or build outreach campaign for existing programs, create community partnerships to address childcare access as a component of workforce participation. • Fair Housing: Improve navigation and case management services for residents needing housing, legal services (related to housing), and basic services documentation assistance. The City has made steady progress and met many of these goals in PY 2025. Under the affordable housing category, the City provided funding to assist in addressing health and safety repairs for 4 extremely low- and low-income elderly homeowners. The City continued to fund programs targeted at preventing homelessness including the Community Access to Resources and Education Program, which is operated by West Valley Community Services. The agency was able to provide services to 100 low-income Cupertino residents, 60 of which were female headed households. Additionally, the City provided CDBG funds to the Live Oak Adult Care Program that provides a specialized program of adult day care for frail elderly dependent adults. The organization operates a site in Cupertino, and in PY 2025 served 13 elderly and disabled clients. In total, CDBG funding assisted 117 people over the course of the program year. The City of Cupertino also funded five additional public service programs through the use of its General Fund Human Services Grant (HSG), a County District 5 Inventory Grant, and Below Market Rate Affordable Housing Fund (BMR AHF) that provide services to low- and moderate-income 17 HC 09-24-2026 17 of 74 CAPER 7 OMB Control No: 2506-0117 (exp. 09/30/2021) families, the elderly, victims of domestic violence, and the disabled. Overall, these five programs provided services to 251 individuals. 1. WVCS Haven to Home Program 2. Senior Adults Legal Assistance Program 3. Catholic Charities Long-term Care Ombudsman Program 4. Maitri 5. Project Sentinel Fair Housing Services The City awarded funding from the California State grant, Permanent Local Housing Allocation (PLHA) for predevelopment of low-income housing, which will construct 40 new affordable housing rental units at Mary Ave Villas. 18 HC 09-24-2026 18 of 74 CAPER 8 OMB Control No: 2506-0117 (exp. 09/30/2021) CR-10 - Racial and Ethnic composition of families assisted Describe the families assisted (including the racial and ethnic status of families assisted). 91.520(a) White 38 Black or African American 2 Asian 53 American Indian or Alaskan Native Native Hawaiian or Other Pacific Islander Middle Eastern or North African Other/multi-racial 24 Hispanic 12 Not Hispanic 105 Table 2 – Table of assistance to racial and ethnic populations by source of funds Narrative The CR-10 Racial and Ethnic Composition of Families Assisted - 91.520(a) table is generated in IDIS and includes five racial categories. The table as shown in IDIS does not reflect all of the racial categories served by the City's CDBG funded agencies. The attached modified CR-10 Racial and Ethnic Composition of Families Assisted - 91.520(a) table includes the correct racial categories for individuals served in PY 2025. In total, the City’s CDBG program served 117 people. The Race/Ethnicity percentages are as follows: • 32.5% were White • 1.7% were African American • 45.3% were Asian • 0.0% were American Indian or Alaskan Native • 0.0% were Native Hawaiian or Other Pacific Islander • 20.5% were Other/Multi-Racial Out of the total of 117 people assisted, approximately 10.3% were Hispanic. In addition, 67 female headed households were served through the City's CDBG funded programs. This information was reported to the City in the quarterly performance reports. 19 HC 09-24-2026 19 of 74 CAPER 9 OMB Control No: 2506-0117 (exp. 09/30/2021) CR-15 - Resources and Investments 91.520(a) Identify the resources made available CDBG public - federal $385,026.37 391,361.44 BMR AHF public - local 50,000 50,000 HSG public - local 129,000 129,000 County District 5 public - local 25,000 25,000 Table 3 - Resources Made Available Narrative During PY 2025, the City received an entitlement allocation of $354,559.00. In addition to the entitlement amount, the City received $7,944.00 in program income and had $22,523.37 in prior year unexpended funds. Combined, the total amount of CDBG funds that were available in PY 2025 was $385,026.37. Lastly, the City made $5,862,763 of local funding (BMR AHF, County District 5, PLHA, and HSG) available to help local nonprofit agencies expand their services, assist more people, and create further housing affordability. Identify the geographic distribution and location of investments Percentage of Percentage of Citywide 100 100 entitlement CDBG allocation citywide. Table 4 – Identify the geographic distribution and location of investments Narrative The City has not established specific target areas to focus the investment of CDBG funds. The funds were distributed Citywide. Leveraging Explain how federal funds leveraged additional resources (private, state, and local funds), including a description of how matching requirements were satisfied, as well as how any publicly owned land or property located within the jurisdiction that were used to address the needs identified in the plan. In addition to the entitlement dollars listed above, the federal government has several other funding programs for community development and affordable housing activities. These include the Section 8 20 HC 09-24-2026 20 of 74 CAPER 10 OMB Control No: 2506-0117 (exp. 09/30/2021) Housing Choice Voucher Program, Section 202, Section 811, the Affordable Housing Program (AHP) through the Federal Home Loan Bank, and more. There are a variety of state, countywide, and local resources that support housing and community development programs. Some of these programs aid local affordable housing developers and community organizations, while others provide aid directly to individuals. The BMR AHF (Below Market Rate Affordable Housing Fund) receives its revenue from the payment of housing mitigation fees from non-residential and residential development projects. The non-residential housing mitigation fee jobs/housing nexus study acknowledges housing needs created by the development of office, commercial, retail, hotel, R&D, and industrial development. A fee is applied to new square footage of non-residential development in the City. The fees collected are deposited in the City's BMR AHF and are to be used for the provision of affordable housing. In PY 2025, the City allocated $50,000 in BMR AHF to Project Sentinel, a local non-profit organization that provides fair housing and tenant/landlord counseling services. The City Council allocated $129,000 from the General Fund HSG to housing and human service agencies throughout the City. The money was utilized to fund a long-term care ombudsman program, legal assistance to seniors, and housing placement/case management services to homeless individuals and families. The City utilized $25,000 from a County District 5 inventory grant for client services for victims of domestic violence. The City owns a parcel of land at Mary Avenue for the development of affordable housing. A disposition, development, and land sale agreement has been signed between the developer and the City for 40 very low-income units. On April 15, 2025, the City Council awarded the Mary Ave project $3 million dollars of the Below Market Rate Housing Fund and $908,683 dollars of Permanent Local Housing Allocation funds. An additional $1,083,200 from the BMR Fund was awarded to a proposed affordable low-income and teacher workforce housing development located on Wolfe Rd. On April 21, 2026, the City awarded an additional $666,880 from the BMR fund to the Wolfe Rd project for a grand total of $1,750,080. The City is a member of the Santa Clara County HOME Consortium which has awarded the Mary Ave Villas project an additional $1,000,000 in HOME funds. 21 HC 09-24-2026 21 of 74 CAPER 11 OMB Control No: 2506-0117 (exp. 09/30/2021) CR-20 - Affordable Housing 91.520(b) Evaluation of the jurisdiction's progress in providing affordable housing, including the number and types of families served, the number of extremely low-income, low-income, moderate-income, and middle-income persons served. One-Year Goal Actual to be provided affordable housing to be provided with affordable housing Total 296 4 Table 5 – Number of Households One-Year Goal Actual through the acquisition of existing Total 296 4 Table 6 – Number of Households Supported Discuss the difference between goals and outcomes and problems encountered in meeting these goals. In PY 2025, Rebuilding Together Silicon Valley (RTSV) provided health and safety repairs to rehabilitate 4 homes occupied by low- and moderate-income senior households. The City met its annual goal in providing much needed funding to repair/rehabilitate units of low- and moderate-income housing. The City has two affordable housing projects in progress. The first, Charities Housing – Mary Ave, proposes 40 units, with 19 very low-income units, 20 extremely low-income units, and one manager unit. Within the affordable unit mix, 19 units will be reserved for individuals with intellectual or developmental disabilities. The second, Eden Housing – Wolf Rd, proposes 249 units built across two phases. The first phase will contain 101 units of mixed-income housing for school district employees, with approximately 22 HC 09-24-2026 22 of 74 CAPER 12 OMB Control No: 2506-0117 (exp. 09/30/2021) 34 low-income units and 67 moderate income units. The second phase will contain 148 units, with 60 very low-income units, 86 low-income units, and two manager units. Both projects were committed funding in FY25-26 however construction is expected to take place throughout the 2025-2030 Consolidated Plan period. As such, the actual reporting for new construction is currently still zero. Discuss how these outcomes will impact future annual action plans. The City does not anticipate any future impact on Annual Action Plans. This is the City’s first year reporting on the goals outlined in the 2025-30 Consolidated Plan, and the City anticipates meeting the five-year goals. Include the number of extremely low-income, low-income, and moderate-income persons served by each activity where information on income by family size is required to determine the eligibility of the activity. Extremely Low-income 3 0 Low-income 0 0 Moderate-income 1 0 Table 7 – Number of Households Served Narrative Information In total, the City provided funding to repair 4 units of affordable housing. Of those 4 households, 3 were extremely low-income (0-30% AMI), 0 were low-income (31-50% AMI), and 1 was moderate-income (51- 80% AMI). The homeowners assisted were seniors and persons with disabilities. 23 HC 09-24-2026 23 of 74 CAPER 13 OMB Control No: 2506-0117 (exp. 09/30/2021) CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) Evaluate the jurisdiction’s progress in meeting its specific objectives for reducing and ending homelessness through: Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs The County Office of Supportive Housing conducts routine outreach to the homeless persons living throughout Santa Clara County. On a biennial basis, the OSH conducts a Point in Time (PIT) count estimating the prevalence of homelessness in the jurisdictions within Santa Clara County, including the City. Through this process the volunteers outreach directly to persons experiencing homelessness to understand their background, situation, and needs. The purpose of the PIT count is to assess the status of homeless persons living within the County and use the findings to apply for funding for HUD to support housing services, including homeless services. Currently, the CoC receives approximately $26 million dollars annually in federal funding. The most recent PIT count took place in January 2025, and the new count is 101 unhoused persons. Secondly, the CoC prepares a community plan focused on ending homelessness in Santa Clara County every five (5) years. The Plan developed through a series of community summits addressing specific homeless populations in the County and is based on extensive community engagement with the homeless populations. The City will take part in the development of the 2025-2030 Community Plan to End Homelessness along with other jurisdictions in Santa Clara County throughout the ConPlan period. Addressing the emergency shelter and transitional housing needs of homeless persons There are no emergency shelters or transitional housing located in the City. However, throughout FY 25- 26, the City jointly collaborated with other West Valley Cities to study the need and feasibility of developing emergency shelter and transitional housing within the region. This study was finished and published on January 26, 2026. The City supports two programs that could be considered seasonal and special needs shelters: the Rotating Safe Car Park (RSCP) program, of which the City has three host sites, and the Maitri transitional housing program which provides shelter to survivors of domestic violence. RSCP allows temporary overnight parking for homeless individuals or families living out of their cars as a safe alternative to sleeping on the streets or in a homeless shelter. The program connects homeless individuals and families with hospitality and case management services. In PY 2025, the City provided $25,000 to Maitri through the General Fund HSG Program. Maitri provides transitional housing for adult women and children who are victims of domestic violence. The majority of the households served by Maitri are homeless. During the year, Maitri provided case management and housing services to 7 households, all of which were extremely low-income. 24 HC 09-24-2026 24 of 74 CAPER 14 OMB Control No: 2506-0117 (exp. 09/30/2021) Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: likely to become homeless after being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); and, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs In PY 2025, the City provided $37,200 in CDBG funds to WVCS to administer its Community Access to Resources and Education (CARE) program. The main focus of the CARE program is to bring services and resources closer to at-risk populations, coordinate assistance internally and externally, and help navigate hospital services, social services, and legal systems. It is designed to enable access to critical basic needs services and help clients navigate the maze of benefits, from Medicare and Social Security to affordable housing options, health care, and specialized care. The one stop benefit assistance service helps aid with applications to benefits including CalWORKs, CalFresh, Medi-Cal, Free/Reduced lunch, and Healthy Kids. The supportive services provided also help clients build financial stability by providing monthly budget relief through access to the food pantry, and discounts on their utility bill and emergency financial assistance for unforeseen emergencies. This range of supportive services and case management helps at-risk individuals and households maintain stability and prevents homelessness due to financial crisis. Additionally, in PY 2025, the City provided General Fund HSG and/or BMR AHF to the following organizations: • Senior Adult Legal (SALA) – Received $18,000.00 from the General Fund HSG. SALA provided free legal services to 32 Cupertino residents aged 60 or older. • Maitri – Received $25,000.00 from the General Fund HSG. With the funds, Maitri provided case management services to 7 Cupertino residents. • Catholic Charities - $11,000 from the General Fund HSG. Catholic Charities provided needed advocacy of elders living in long-term care facilities. In total, 60 unduplicated residents were contacted. The City follows the guidance of Santa Clara County's CoC as it relates to individuals who may be discharged from publicly funded institutions and systems of care. The details can be found on their website in the SCC CoC Quality Assurance Standards for Homeless Housing & Service Programs document. The CoC actively works with health care facilities, hospitals, and correction programs and institutions when individuals are discharged to provide referrals to shelters. Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that 25 HC 09-24-2026 25 of 74 CAPER 15 OMB Control No: 2506-0117 (exp. 09/30/2021) individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again As mentioned above, the City provided $37,200.00 in CDBG funds to WVCS to administer its CARE program. CARE provides case management and short-term rental assistance to support homeless families transitioning to permanent housing. Additionally, the program allocates Red Cross emergency rental grants and emergency utility payments to assist low-income individuals and families on the verge of homeless maintain their housing. In PY 2025, the City provided $100,000.00 in General Fund HSG to WVCS for the Haven to Home (HTH) program. The goal of HTH is to help currently un-housed Cupertino individuals and families secure permanent housing, maintain employment, and enhance income opportunities and financial stability. The supportive services critical to the success of this program are intensive case management, housing search assistance, landlord mediation, benefits clinics, and financial coaching. HTH aims to end homelessness and prevent homelessness by coordinating multilevel services and leveraging further resources in the community in order to build long-term stability and self-sufficiency for participants. WVCS served 83 homeless individuals and families whose last address was in Cupertino. In total in PY 2025, the City spent approximately $37,200 in CDBG, $100,000 in General Fund HSG, $25,000 in County District 5 Funds, and $50,000 in BMR AHF funding to provide a variety of support services for low-income Cupertino households. Services provided include the provision of food, clothing, legal assistance, emergency rental assistance, and a variety of other services. 26 HC 09-24-2026 26 of 74 CAPER 16 OMB Control No: 2506-0117 (exp. 09/30/2021) CR-30 - Public Housing 91.220(h); 91.320(j) Actions taken to address the needs of public housing Not applicable. The Santa Clara County Housing Authority (SCCHA) owns and manages 4 public housing units which are all located in the City of Santa Clara. There is no public housing in Cupertino. Actions taken to encourage public housing residents to become more involved in management and participate in homeownership While the majority of their units have been converted to affordable housing stock, SCCHA is proactive in incorporating resident input into the agency’s policy-making process. An equitable and transparent policy- making process that includes the opinions of residents is achieved through the involvement of two tenant commissioners on the SCCHA board. Actions taken to provide assistance to troubled PHAs The SCCHA is not troubled. 27 HC 09-24-2026 27 of 74 CAPER 17 OMB Control No: 2506-0117 (exp. 09/30/2021) CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j) Actions taken to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment. 91.220 (j); 91.320 (i) In the City’s 2023-2031 Housing Element, several policy initiatives were identified to remove barriers to affordable housing. In the FY 25-26, the City adopted Ordinance 25-2274 to update its code regarding Accessory Dwelling Units (ADU)s for consistency with state law, Ordinance 25-227 to incorporate standards for ministerial approval of duplexes, lot splits, and other state regulations. These actions will assist the City in continuing to address the many barriers to affordable housing (including high costs and limited land) and provide additional funds to assist developers in building affordable housing in the City of Cupertino. Resolution 25-051 was adopted to allow priority replacement into the BMR waitlist system for displaced rental tenants in units with expiring affordability restrictions. In PY 2025, the City continued to administer its BMR Ownership and Rental Programs in an effort to remove barriers to affordable housing. Over the course of the year, there were 2 BMR ownership unit resales, and new tenants were found to fill vacancies for 10 BMR rental units through the City’s main BMR waitlist. Actions taken to address obstacles to meeting underserved needs. 91.220(k); 91.320(j) As mentioned in the Consolidated Plan, the City’s highest need is for affordable units for low-income and special needs households. Some of the primary impediments to creating affordable units is the high cost of land in Cupertino, and rising construction costs. In order to fund 100% affordable developments, the City adopted an inclusionary housing program, which requires all new residential developments to dedicate 15% for rental projects and 20% for ownership projects as affordable, or pay an in-lieu fee. This in-lieu fee allows the City to accumulate funds to use for affordable developments. These fees have been used to fund the aforementioned Mary Ave and Wolfe Rd projects. The City has increased its efforts to promote development of affordable housing throughout the City. Annually, the City releases a Notice of Funding Availability (NOFA) / Request for Proposals (RFP) for BMR AHF and CDBG capital housing projects. For PY 2025, the City released a NOFA/RFP for $1,100,000 in BMR AHF which could be used for activities such as land acquisition, new construction, acquisition, and/or rehabilitation of buildings for permanent affordability, and substantial rehabilitation to which $666,880 was awarded to the Wolfe Rd affordable housing project. For more information see the above section in CR-15. In addition, the NOFA/RFP included $280,000 in CDBG funding for capital housing projects. The City is a member of the Santa Clara County HOME Consortium and PLHA Consortium. These funds can be used to fund eligible affordable housing projects for predevelopment, acquisition, construction, and rehabilitation. Developers of affordable housing projects are eligible to competitively apply through an 28 HC 09-24-2026 28 of 74 CAPER 18 OMB Control No: 2506-0117 (exp. 09/30/2021) annual Request for Proposals (RFP) process. Applications are submitted to the County Office of Supportive Housing (OSH) and to the City through the annual NOFA. The City of Cupertino’s Housing Element contains a goal for the city to adopt an implementation plan for addressing displacement due to rising rents and evictions by June 2026. The Housing Commission heard staff present policy options on December 8, 2025 and proposed they be added to the City Work Plan for FY 26-29 via a letter to City Council dated June 4, 2026. The policy options and latest programs suggested for inclusion are as follows: 1. Tenant Legal Services 2. Eviction Protection 3. Rent Stabilization 4. Rent Mediation 5. Deposit/Fee Regulation Actions taken to reduce lead-based paint hazards. 91.220(k); 91.320(j) The number of units with potential lead-based paint hazards in the City is less than 500. Lower income households will occupy some percentage of these units, but how many is not known. In addition to working with the County Health Department to identify and assist any children with elevated blood lead levels, the City will, as part of its efforts to address the rehabilitation needs of its housing stock, aid persons seeking to mitigate lead hazards in the home. Currently, City staff has a policy to test any property being assisted with CDBG funds for the presence of lead-based paint if the property was constructed prior to 1978. If the property tests positive for the presence of lead-based paint, then the City assists with the abatement of the paint. In all cases, the property owners and tenants are notified about the presence of the lead-based paint. The City also assists the contractor with finding contractors trained in how to deal with lead-based paint or receiving training themselves. Actions taken to reduce the number of poverty-level families. 91.220(k); 91.320(j) As mentioned earlier, the City funds WVCS’s CARE program to provide those living below the poverty level with food, clothing, and emergency rental assistance. These are basic necessities that those living at or below the poverty level cannot afford due to limited incomes. WVCS also provides job search assistance and basic computer classes in an attempt to reduce the number of persons living below the poverty level. Due to the high cost of housing in the area, the City has focused its efforts on providing and maintaining the affordable housing of low-income households in order to prevent them from becoming homeless. Once a household has affordable housing, they are able to focus on obtaining job skills and securing employment opportunities. During PY 2025, the City Council budgeted $129,000 of local General Fund monies. This funding level aligned with other current efforts, will assist households living below the 29 HC 09-24-2026 29 of 74 CAPER 19 OMB Control No: 2506-0117 (exp. 09/30/2021) poverty level, and help keep them from losing their housing due to an unanticipated life event, such as an illness. Actions taken to develop institutional structure. 91.220(k); 91.320(j) The City continues to participate with other local jurisdictions in sharing information and resources regarding CDBG and other housing programs. Meetings take place on a monthly basis. Additionally, when projects are funded by multiple jurisdictions, the jurisdictions involved cooperate in an effort to reduce duplication of work and reduce project monitoring costs. City staff will continue the following collaborative efforts to improve institutional structure: • Joint jurisdiction RFP and project review committees • Coordination on project management for projects funded by multiple jurisdictions • HOME/PLHA Consortium between member jurisdictions for affordable housing projects The City is also represented at the Santa Clara County Association of Planning Officers (SCCAPO), Santa Clara County Planning Collaborative (SCCPC), and Silicon Valley Leadership Group’s Housing Action Coalition (HAC) meetings. These meetings are especially important in fostering regional approaches to providing affordable housing. Actions taken to enhance coordination between public and private housing and social service agencies. 91.220(k); 91.320(j) The City benefits from a strong jurisdiction and region-wide network of housing and community development partners, such as the Regional Housing Working Group, and the Continuum of Care (CoC). To improve intergovernmental and private sector cooperation, the City participates with other local jurisdictions and developers in sharing information and resources. An example of this is a monthly Housing/CDBG Coordinator’s meeting where staff members from various jurisdictions around the Bay Area meet to discuss numerous opportunities for coordination and work through problems. The City has continued to attend these meetings throughout PY 2025. Identify actions taken to overcome the effects of any impediments identified in the jurisdictions analysis of impediments to fair housing choice. 91.520(a) The City’s Analysis of Impediments (AI) to Fair Housing Choice included several recommended policies and actions to respond to the fair housing impediments identified in the document. The City has implemented the following in response to the impediments identified in the AI: • Facilitate access to BMR units. The City will continue to assist affordable housing developers and market rate developers in advertising the availability of BMR and affordable units via a link on the City’s website (www.cupertino.org/housing), the United Way’s 2-1-1 program, phone referrals, and other media outlets. The City will also facilitate communications between special needs 30 HC 09-24-2026 30 of 74 CAPER 20 OMB Control No: 2506-0117 (exp. 09/30/2021) service providers and affordable housing developers, to ensure that home seekers with special needs have fair access to vacant units. • Facilitate access to all available housing programs. The City will continue to fund multiple housing programs through various funding sources annually and help to promote these programs and services to the public. • City staff continues to contract with a fair housing provider to conduct outreach and education regarding fair housing for home seekers, landlords, property managers, real estate agents, and lenders. • In addition to outreach, the fair housing provider will conduct fair housing testing in local apartment complexes. • Reevaluate its current contracts and amend future contracts, if necessary, to ensure that the fair housing services with the highest need are continued to be provided and consider implementing a rental assistance program to keep low-income Cupertino residents in their homes. • The City will periodically review the Zoning Ordinance to ensure regulations are consistent with fair housing laws and do not constrain housing production. If particular zoning requirements impede fair housing or production, the City will amend the regulations. • The City will continue to support the HACSC to ensure adequate outreach to minority, limited English proficiency, and special needs populations regarding the availability of public housing and Section 8 vouchers. • The City will continue to plan for higher residential and employment densities where appropriate to maximize linkages between employers and affordable housing. • The City will continue to work with local transit agencies to facilitate safe and efficient routes for the various forms of public transit. Project Sentinel received $50,000 from the City’s BMR AHF to support their fair housing, tenant and landlord counseling, dispute resolution services, and rental mediation activities. To combat illegal housing discrimination and ensure civil rights protection, Project Sentinel provides comprehensive fair housing services including complaint investigation, consultation, information and referral, and community outreach and education. Fair housing investigations that reveal evidence of illegal discrimination are addressed through education, conciliation, referral to HUD or DFEH filings, and/or litigation. Investigative work efforts include paired testing, surveys, witness interviews, and document review. In PY 2025, the Fair Housing Center at Project Sentinel served 69 individuals. 31 HC 09-24-2026 31 of 74 CAPER 21 OMB Control No: 2506-0117 (exp. 09/30/2021) CR-40 - Monitoring 91.220 and 91.230 Describe the standards and procedures used to monitor activities carried out in furtherance of the plan and used to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements The City continues to actively monitor all CDBG subrecipients and projects to ensure compliance with program and comprehensive planning requirements. Monitoring involves the review of quarterly reports, invoices, and agency audit reports. Annual monitoring is carried out for all CDBG subrecipients and consists of reviewing client files, financial records, policies and procedures, and compliance with federal requirements. If findings or concerns are identified during annual monitoring, City staff work with subrecipients to determine necessary corrective actions and schedule follow-up meetings to ensure compliance. In addition to annual monitoring, staff evaluates subrecipients through the submission of quarterly expense reports and progress reports on City Data Services. The expense reports document program expenses with line-item breakdowns and supporting documentation. The progress reports track progress towards annual goals and provide client demographic information to ensure program eligibility. Citizen Participation Plan 91.105(d); 91.115(d) Describe the efforts to provide citizens with reasonable notice and an opportunity to comment on performance reports. A draft CAPER was made available on the City website (www.cupertino.org/housing) and at City Hall for the required 15-day public comment period (September 8 – September 24, 2026). An advertisement was placed in the Cupertino Courier, a newspaper of general circulation on August 21, 2026 advertising the availability of the CAPER for public review and comment. The draft CAPER was posted on the City’s website on September 4, 2026. Copies of the draft CAPER were made available to be mailed or e-mailed to citizens free of charge. The City makes a TDD phone number available for the hearing impaired. Persons needing special assistance could call and request accommodation prior to the public meetings. In order to make efforts towards providing non-English speaking persons with an opportunity to comment on the draft CAPER, the City can provide the appropriate language assistance upon request. The City held a public hearing during the Cupertino Housing Commission meeting on September 24, 2026 to provide the public with an opportunity to comment on the draft CAPER. 32 HC 09-24-2026 32 of 74 CAPER 22 OMB Control No: 2506-0117 (exp. 09/30/2021) CR-45 - CDBG 91.520(c) Specify the nature of, and reasons for, any changes in the jurisdiction’s program objectives and indications of how the jurisdiction would change its programs as a result of its experiences. Not applicable. The City does not plan to change the CDBG program objectives. Does this Jurisdiction have any open Brownfields Economic Development Initiative (BEDI) grants? No [BEDI grantees] Describe accomplishments and program outcomes during the last year. 33 HC 09-24-2026 33 of 74 CAPER 23 OMB Control No: 2506-0117 (exp. 09/30/2021) CR-58 – Section 3 Identify the number of individuals assisted and the types of assistance provided Total Number of Activities 1 0 0 0 0 Total Labor Hours 465 0 0 0 0 Total Section 3 Worker Hours 0 0 0 0 0 Total Targeted Section 3 Worker Hours 0 0 0 0 0 Table 8 – Total Labor Hours Qualitative Efforts - Number of Activities by Program CDBG HOME ESG HOPWA HTF Outreach efforts to generate job applicants who are Public Housing Targeted Workers 0 0 0 0 0 Outreach efforts to generate job applicants who are Other Funding Targeted Workers. 0 0 0 0 0 Direct, on-the job training (including apprenticeships).0 0 0 0 0 Indirect training such as arranging for, contracting for, or paying tuition for, off-site training.0 0 0 0 0 Technical assistance to help Section 3 workers compete for jobs (e.g., resume assistance, coaching).0 0 0 0 0 Outreach efforts to identify and secure bids from Section 3 business concerns. 0 0 0 0 0 Technical assistance to help Section 3 business concerns understand and bid on contracts.0 0 0 0 0 Division of contracts into smaller jobs to facilitate participation by Section 3 business concerns.0 0 0 0 0 Provided or connected residents with assistance in seeking employment including drafting resumes, preparing for interviews, finding job 0 0 0 0 0 Held one or more job fairs.0 0 0 0 0 Provided or connected residents with supportive services that can provide direct services or referrals.0 0 0 0 0 Provided or connected residents with supportive services that provide one or more of the following: work readiness health screenings, 0 0 0 0 0 Assisted residents with finding childcare.0 0 0 0 0 Assisted residents to apply for or attend community college or a four- year educational institution.0 0 0 0 0 Assisted residents to apply for or attend vocational/technical training.0 0 0 0 0 Assisted residents to obtain financial literacy training and/or coaching.0 0 0 0 0 Bonding assistance, guaranties, or other efforts to support viable bids from Section 3 business concerns. 0 0 0 0 0 Provided or connected residents with training on computer use or online technologies.0 0 0 0 0 Promoting the use of a business registry designed to create opportunities for disadvantaged and small businesses.0 0 0 0 0 Outreach, engagement, or referrals with the state one-stop system, as designed in Section 121(e)(2) of the Workforce Innovation and 0 0 0 0 0 Other.1 0 0 0 0 Table 9 – Qualitative Efforts - Number of Activities by Program 34 HC 09-24-2026 34 of 74 CAPER 24 OMB Control No: 2506-0117 (exp. 09/30/2021) Narrative Initially funded in FY 23-24, the Cupertino Senior Center Fire Alarm Replacement Project consisted of replacing the entire fire alarm system at the senior center with a complete, sitewide, fully addressable fire alarm system. The project expended $158,961.44 in CDBG funds during PY 2025, bringing the project total to $199,152.76 at completion in June 2026. Due to the limited size and scope of the project, it was not feasible to meet the Section 3 outreach and participation requirements. The overall contract value and duration did not provide sufficient opportunity to effectively implement workforce development, outreach efforts, or subcontracting initiatives as outlined. Given the minimal labor hours, condensed schedule, and specialized nature of the work, there were no practical opportunities to engage additional Section 3 workers or business concerns without impacting project efficiency and delivery. 35 HC 09-24-2026 35 of 74 CITY OF CUPERTINO Agenda Item Subject: Progress update on policies and programs for tenant protections and anti-displacement for renters in market rate units; proposal of draft eviction protection ordinance. Receive presentation and recommend approval of an eviction protection policy to City Council for adoption. CITY OF CUPERTINO Printed on 9/18/2026Page 1 of 1 36 HC 09-24-2026 36 of 74 HOUSING COMMISSION STAFF REPORT September 24, 2026 Subject Progress update on policies and programs for tenant protections and anti-displacement for renters in market rate units; proposal of draft eviction protection ordinance. Recommended Action Receive presentation and recommend approval of an eviction protection policy to City Council for adoption. Background Housing Commission 2025 Study Session The Housing Commission of the City of Cupertino previously held a study session on December 8, 2025, to recommend several tenant protection policies and anti-displacement programs for staff to further study and implement in accordance with Housing Element Strategy HE-3.3.6 (Tenant Protections). Strategy HE-3.3.6 requires staff to study displacement in Cupertino due to rising rents and evictions, and to enact a Tenant Protection Ordinance (TPO), if appropriate. This type of displacement is faced by low-income renters in market-rate units, who are affected by fluctuations in rental rates and commonly face eviction due to non-payment of rent. Low-income households are disproportionately rent burdened and therefore more likely to face eviction and homelessness due to high rent increases. In comparison, high and medium-income households can afford to pay higher rents and have the resources to find other housing options affordable to their income level if required to move. They do not require the same assistance to remain stably housed. Thus, any assistance policy or program created from this effort would be targeted to low-income households who live in market rate units. The Housing Commission voted in favor of further study of three policies (eviction protection, rent stabilization, and deposit/fee regulations) and recommended prioritizing two programs for funding (rent mediation, and tenant legal services). Since this meeting, staff and the Housing Commission undertook several efforts to work towards funding, implementation, and enaction of these policies. This includes drafting a new ordinance for eviction protections to be recommended by the Housing Commission to the City Council for approval. A comprehensive update to summarize these actions during the year 2026 is summarized in the following report. 37 HC 09-24-2026 37 of 74 2 Discussion Rent Mediation This strategy involves the City providing funding support to a non-profit organization to act as an intermediary between renters and property owners to resolve disputes regarding rent raises. Arbitration services through non-profit organizations are generally successful as an enforcement mechanism for rent control laws, though, this service is strongest if used in tandem with enacting local protections. However, without a local ordinance, it is still able to be used for enforcement of state rent control, which is how this strategy is currently used in Cupertino. The City currently contracts with Project Sentinel to provide tenant-landlord dispute resolution and Fair Housing enforcement. This contract includes rent mediation issues. On March 27, 2026, the Housing Commission voted in favor of increasing the scope of the contract with Project Sentinel to expand their services for additional landlord and tenant education of new housing laws. This action was approved by City Council on April 21, 2026, as well as approving a resolution to raise the public service funding cap in the Below Market Rate Affordable Housing Fund (BMR AHF) to $75,000 per year from the previous cap of $50,000 per year. As Project Sentinel is the only recipient of public service BMR AHF funding, this has effectively created the necessary fiscal capacity for expanded rent mediation services for enforcement of other tenant protection policies as they become enacted. The overall status for this item is “substantially complete”. Tenant Legal Services (TLS) This strategy involves using local funds to enact agreements with legal defense organizations to represent tenants who have been served unlawful detainers. Tenants with legal representation are more likely to avoid receiving a court order for eviction and can find alternative resolutions to settle disputes with their landlords. These alternative resolutions may include rent forgiveness or relocation assistance, a more favorable outcome than homelessness or displacement. Low-income renters in Santa Clara County are among the least served in the Bay Area. In 2023, only 1.6% of low-income renters were represented by tenant legal service providers. Furthermore, Santa Clara County attorneys who represent tenants have the highest caseloads in the Bay Area, with each attorney having an average of 480 cases a year. In 2026, staff reached out to providers of tenant legal service providers to encourage them to apply for the City’s annual Housing funding Notice of Funding Availability (NOFA). Through this process, the City would be able to create a new agreement with a potential provider and ensure that they have increased capacity that would serve a dedicated number of Cupertino renters. In the upcoming NOFA cycle for FY27-28, staff will make available an additional funding source, the Permanent Local Housing Allocation (PLHA) to be used for eligible housing services in addition to affordable housing projects. This will increase overall capacity for housing program funding, which may allow for the addition of a new program if the City receives applications from qualified TLS providers and the Housing Commission recommends funding their program. The overall status for this item is “well underway”. 38 HC 09-24-2026 38 of 74 3 Implementation Plan This is not a policy strategy but rather an administrative action undertaken to concurrently meet Housing Element deadlines and inform the City Council of potential items for future study. As previously mentioned, multiple policies and programs were recommended for implementation. While the Housing Commission is able to fund the proposed programs through its annual NOFA process, staff must study legal defensibility, fiscal feasibility, and staff capacity for the policy items, as well as ensuring that the proposed ordinances are consistent with Housing Commission’s policy goals prior to their proposal. In practice, each proposed item would need to be individually proposed to the Housing Commission for recommendation prior to them being brought before Council, which requires several public hearings and public outreach. On June 5, 2026, staff and the Chair of the Housing Commission sent a letter (Attachment B) to the City Council requesting that the Council add the following item (Table 1) as an ongoing City Work Plan item. This satisfies the first minimum requirement of proposing an implementation plan to City Council related to tenant protections and anti displacement actions by June 2026. This will also allow staff time to explore, study, draft policies, solicit feedback from the community, and amend each policy as needed prior to proposing to the Housing Commission and City Council. The Council has not yet responded to this request. The overall status of this action is “in progress and awaiting response”. 39 HC 09-24-2026 39 of 74 Table 1: Proposed City Work Plan Item # Project Title Project Description Council Goal Est budget (Not including staff costs) Project Size Lead Departments (s) Estimated Timeline 20 Tenant Protection Implementation Plan 20.1 Support anti-displacement low-income housing programs through the annual housing funding process such as rent mediation and tenant legal services. 20.2 Study, draft, and propose potential low-income tenant protection ordinances such as eviction protections, rent stabilization, and/or deposit/fee regulations through the Housing Commission for approval by the City Council. Housing $65,000 N/A CDD Year 1 start, Year 3 end 40 HC 09-24-2026 40 of 74 Eviction Protection Ordinance With limited timelines and capacity, staff has identified the Eviction Protection Ordinance to be the highest priority for policy to be proposed to the Housing Commission and City Council. In terms of legal defensibility, there is a mechanism in state law that expressly authorizes cities to enact more protective local ordinances to assist tenants for just cause protections. For financial feasibility and staff capacity, this ordinance would be able to be passed with minimal need for expansion of staff. Enforcement could be completed through Project Sentinel, which as previously mentioned, is able to be recommended for additional funding with newly raised public service funding caps. A no-cause termination is an eviction where an owner does not state a “just cause” for removing the tenant. In this scenario, tenants are served a notice to vacate without a clearly stated reason. Just causes are typically separated into two categories: at-fault evictions and no- fault evictions. An at-fault eviction would be non-payment of rent, a tenant-created nuisance, or some other infraction of the lease. A no-fault eviction would be if the landlord wishes to live in the unit, perform construction within the unit, or otherwise wants to withdraw the unit from the market. The state Tenant Bill of Rights (2019) currently has protections that limit landlords’ right to evict to a stated just-cause reason for tenants that have lived in the unit for longer than 12 months. Furthermore, it requires that one month of fair market rent be provided to the tenant as relocation assistance if the tenant is evicted for a no-fault reason. It exempts tenant protections for single-family homes, townhomes, condominiums, and other housing built within the last 15 years. Following the directive from the state to create their own just cause protections, many Bay Area municipalities have enacted local ordinances which expand upon state protections. Common items include: an increased penalty for no-fault eviction to 3 months of fair market rent for relocation assistance, expanded protections to tenants living in units less than 12 months, enhanced protections for adding family members and subleasing, restrictions on owner move ins, extended noticing for Ellis Act evictions, and removal of loopholes for remodels, single family homes, townhomes, and condos. Just cause eviction protection would be a necessary component to include in a TPO to close loopholes for owner-initiated displacement and to ensure enforceability. Based on common practices, components for a potential Cupertino just cause eviction protection ordinance have been identified in the figure below. For the purposes of this study, Santa Clara County municipalities were utilized for closest comparisons, but the language in Cupertino’s proposed ordinance is heavily influenced by the City of Sunnyvale and County of Santa Clara’s policy: 41 HC 09-24-2026 41 of 74 Table 2: Santa Clara County Cities Just Cause Eviction Ordinance City Relocation Assistance Occupation Minimum Exemption for SFH, TH, Condos Restriction on Remodel Eviction Notice for Ellis Act Family/Sublease Protection Restriction on Owner Move in AB 1482 1 month FMR 12 months Yes (no corporations) No None None Owner must be a “natural person” with at least 25% recorded ownership interest Milpitas 1 month rent 12 months Yes (no corporations) No None No Authorizes move-in by an “owner” Mountain View 3 months FMR None Yes Yes 120 days or 1 year for special circumstances Yes Owner must be a “natural person” with at least 50% recorded ownership interest Palo Alto Unique calculation, similar to 3 months FMR 6 months Yes (no corporations) No None No Owner must be a “natural person” San Jose Unique calculation, similar to 3 months FMR 7 days Yes Yes 120 days or 1 year for special circumstances Yes Owner must be a “fee owner” with at least 50% recorded ownership interest Sunnyvale 3 months FMR 12 months No No None No Owner must be a “natural person” with at least 25% recorded ownership interest Santa Clara County 3 months FMR None No Yes 120 days or 1 year for special circumstances Yes Owner must be a “natural person” with at least 50% recorded ownership interest Cupertino (potential) 3 months FMR None No Yes 120 days or 1 year for special circumstances Yes Owner must be a “natural person” with at least 50% recorded ownership interest 42 HC 09-24-2026 42 of 74 The primary mechanism to discourage no-fault evictions is the penalty landlords must pay to their tenants. To strengthen this penalty and also ensure that tenants are adequately compensated for the costs of relocation, it is common practice for City’s to increase the penalty from one (1) month to three (3) months of Fair Market Rent. This increase will cover the common costs of applying for a new lease in the market, as property managers often as for a deposit equivalent to one month of rent, and the first and last month of rent to be paid up front. Combined, this is equivalent to three (3) months of Fair Market Rent. Table 3: 2026 Santa Clara County Fair Market Rent Unit Size Studio 1 Bed 2 Bed 3 Bed 4 Bed 5 Bed 6 Bed Fair Market Rent $2,621 $2,982 $3,483 $4,602 $5,010 $5,762 $6,513 3x $7,863 $8,946 $10,449 $13,806 $15,030 $17,286 $19,539 Additional components in the proposed policy expand beyond state law by removing loopholes, adding protection, and clarifying vague definitions. Examples of closing loopholes include: removing the twelve-month minimum tenancy requirement for the law to be appliable, removing exemptions to the law for single family homes, townhomes, and condos, and adding a restriction on using remodeling as a reason for eviction. Some additional protections include a clear noticing requirement to tenants when a landlord withdraws their unit from the m arket and adding protections for family members under the care of the tenant who are not on the lease. Finally, a common feature of stronger tenant protection policies is defining eligible property owners as natural persons who hold at least a 50% recorded ownership interest in the property. This helps ensure that corporate -owned properties cannot claim exemptions under the law. Overall, this strategy would be effective in discouraging evictions and could help improve outcomes for tenants facing displacement. The stronger penalty would help low-income tenants rehome themselves while expanding the scope of protection would prevent landlords from claiming exemption to the law. Education to landlords and tenants could be logistically combined into the effort for monthly community outreach through Project Sentinel, while enforcement of the law would be able to be done through City staff and Project Sentinel’s landlord/tenant rent mediation program. Staff recommends that the Housing Commission evaluate the draft ordinance (Attachment A) and recommend for approval to the City Council. Other Policies The other two policies identified by the Housing Commission were rent stabilization and deposit/fee regulations. These policies require further study for legal defensi bility, financial feasibility, and staff capacity. The findings for these items may be presented to the Housing Commission at a future agendized meeting when additional analysis and comparative study is complete. The overall status of these items is, “further study to commence”. Sustainability Impact None Fiscal Impact 43 HC 09-24-2026 43 of 74 8 None. Environmental Impact The item is a discussion before the Housing Commission of tenant protection policies and anti - displacement programs for tenants residing in market rate units that would subsequently require adoption by the City Council. The project is exempt from the California Environmental Quality Act (CEQA) and the CEQA Guidelines subject to CEQA Guidelines Section 15061(b)(3), since it can be seen with certainty that the activity has no possibility to result in a significant effect on the environment. Next Steps If the recommendation of the Housing Commission is to pursue any of the identified strategies, this would be the first of multiple public hearings. A future public hearing of the City Council may be held to approve an eviction protection ordinance. This meeting may be held in summer of 2027 with a date and time to follow. Prepared by: Nicky Vu, Senior Housing Coordinator Reviewed by: Luke Connolly, Assistant Director of Community Development Approved for Submission by: Benjamin Fu, Director of Community Development Attachments: A – Draft Housing Commission Resolution No. 26-XXXX B – Letter from the Chair of the Housing Commission to City Council 44 HC 09-24-2026 44 of 74 RESOLUTION NO. 26-___ A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CUPERTINO RECOMMENDING APPROVAL OF AN ORDINANCE TO AMEND CITY CODE TO CREATE TITLE 4: HOUSING REGULATIONS TO ENACT JUST CAUSE EVICTION PROTECTIONS ________________________________________________________________________ WHEREAS, due to the limited supply of deed-restricted affordable housing, low-income families in the City often reside in non-restricted units, becoming disproportionately burdened by the costs of housing and are more vulnerable to displacement due to rising rents and evictions; and WHEREAS, residential tenants, and in particular low-income residential tenants, who face displacement experience difficulties in finding new temporary or permanent housing, and may require assistance through public services to avoid homelessness due to the unanticipated needs occasioned by displacement. The costs of displacement are borne by the community at the expense of taxpayers; and WHEREAS, preventing displacement and homelessness is therefore beneficial to both the party receiving assistance and the community at large; and WHEREAS, California Civil Code 1946.2 codifies the “just cause” eviction protection provisions of the Tenant Protection Act of 2019 and expressly permits local jurisdictions to adopt more protective eviction protection ordinances so long as: a. The local just cause for termination of a residential tenancy is consistent with state law. b. The local ordinance further limits the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts, or provides additional tenant protections that are not prohibited by any other provision of law. c. The local government has made a binding finding within their local ordinance that the ordinance is more protective that the provisions of state law; and 45 HC 09-24-2026 45 of 74 Resolution No. __________________ Page 2 WHEREAS, the 2023-2031 City of Cupertino Housing Element Strategy HE 3.3.6 (Tenant Protections) commits the City to study rent stabilization and tenant protection ordinances to prevent displacement due to rising rents and evictions, and to propose implementing ordinances to City Council; and WHEREAS, on December 8, 2025, the Housing Commission held a study session on potential anti-displacement programs and tenant protection policies to address displacement due to rising rent and evictions and recommended that the following strategies be included for further study and potential implementation: expanded rent mediation, tenant legal services, eviction protections, rent stabilization, and deposit/fee regulations; and WHEREAS, on June 4, 2026, the Chair of the Housing Commission formally requested via letter that the City Council add the study and potential implementation of the aforementioned anti-displacement programs and tenant protection policies as an ongoing City Work Plan item; and WHEREAS, City Municipal Code does not currently have a reserved title for local housing policy not related to zoning or land-use decisions. NOW, THEREFORE, BE IT RESOLVED that the Housing Commission of the City of Cupertino recommends that the City Council approve the ordinance as described in Exhibit A. BE IT FURTHER RESOLVED that the Housing Commission of the City of Cupertino hereby: This Resolution is not a project under the requirements of the California Environmental Quality Act, together with related State CEQA Guidelines (collectively, “CEQA”) because it has no potential for resulting in physical change in the environment. In the event that this Resolution is found to be a project under CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility that the action approved may have a significant effect on the environment. CEQA applies only to actions which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the 46 HC 09-24-2026 46 of 74 Resolution No. __________________ Page 2 activity is not subject to CEQA. In this circumstance, the proposed action (recommending approval of an ordinance) would have no or only a de minimis effect on the environment because it has no potential for resulting in physical change in the environment. The foregoing determination is made by the Housing Commission in its independent judgment. PASSED AND ADOPTED at a special meeting of the Housing Commission of the City of Cupertino this 24th day of September 2024, by the following vote: Vote Members of the Housing Commission AYES: NOES: ABSENT: ABSTAIN: ________ Usha Narayan, Chair, Housing ________________________ Date __________________________________ Nicky Vu, Sr. Housing Coordinator ________________________ Date 47 HC 09-24-2026 47 of 74 1 ORDINANCE NO. __________________ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING CITY CODE TO UNRESERVE TITLE 4 TO CREATE TITLE 4: HOUSING REGULATIONS TO ENACT JUST CAUSE EVICTION PROTECTIONS The City Council of the City of Cupertino finds that: 1.WHEREAS, due to the limited supply of deed-restricted affordable housing, low- income families in the City often reside in non-restricted units, becoming disproportionately burdened by the costs of housing and are more vulnerable to displacement due to rising rents and evictions; and 2.WHEREAS, residential tenants, and in particular low-income residential tenants, who face displacement experience difficulties in finding new temporary or permanent housing, and may require assistance through public services to avoid homelessness due to the unanticipated needs occasioned by displacement. The costs of displacement are borne by the community at the expense of taxpayers; and 3.WHEREAS, preventing displacement and homelessness is therefore beneficial to both the party receiving assistance and the community at large; and 4.WHEREAS, California Civil Code 1946.2 codifies the “just cause” eviction protection provisions of the Tenant Protection Act of 2019 and expressly permits local jurisdictions to adopt more protective eviction protection ordinances so long as: a.The local just cause for termination of a residential tenancy is consistent with state law. b.The local ordinance further limits the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts, or provides additional tenant protections that are not prohibited by any other provision of law. Exhibit A 48 HC 09-24-2026 48 of 74 Ordinance No. __________ Page 2 c. The local government has made a binding finding within their local ordinance that the ordinance is more protective that the provisions of state law; and 5. WHEREAS, the 2023-2031 City of Cupertino Housing Element Strategy HE-3.3.6 (Tenant Protections) commits the City to study rent stabilization and tenant protection ordinances to prevent displacement due to rising rents and evictions, and to propose implementing ordinances to City Council; and 6. WHEREAS, on December 8, 2025, the Housing Commission held a study session on potential anti-displacement programs and tenant protection policies to address displacement due to rising rent and evictions and recommended that the following strategies be included for further study and potential implementation: expanded rent mediation, tenant legal services, eviction protections, rent stabilization, and deposit/fee regulations; and 7. WHEREAS, on June 4, 2026, the Chair of the Housing Commission formally requested via letter that the City Council add the study and potential implementation of the aforementioned anti-displacement programs and tenant protection policies as an ongoing City Work Plan item; and 8. WHEREAS, City Municipal Code does not currently have a reserved title for local housing policy not related to zoning or land-use decisions; and 9. WHEREAS, on September 24, 2026, by Resolution 2026-01, the Housing Commission recommended on a (x-x) vote that the City Council adopt the proposed local “just cause” eviction protection ordinance and establish Title 4 of the Municipal Code Housing Regulations for housing policies not related to zoning and land-use; and 10. WHEREAS, The City Council of the City of Cupertino held a duly noticed public hearing on [date], and after considering all testimony and written materials provided in connection with that hearing introduced this ordinance and waived the reading thereof. NOW, THEREFORE, THE CITY COUNCIL OF THE OF CITY OF CUPERTINO DOES ORDAIN AS FOLLOWS: 49 HC 09-24-2026 49 of 74 Ordinance No. __________ Page 3 SECTION 1. Adoption. The Cupertino Municipal Code is hereby amended as set forth in Attachment A. SECTION 2: Severability and Continuity. The City Council declares that each section, sub-section, paragraph, sub-paragraph, sentence, clause and phrase of this ordinance is severable and independent of every other section, sub-section, paragraph, sub-paragraph, sentence, clause and phrase of this ordinance. If any section, sub-section, paragraph, sub-paragraph, sentence, clause or phrase of this ordinance is held invalid, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, the City Council declares that it would have adopted the remaining provisions of this ordinance irrespective of such portion, and further declares its express intent that the remaining portions of this ordinance should remain in effect after the invalid portion has been eliminated. To the extent the provisions of this Ordinance are substantially the same as previous provisions of the Cupertino Municipal Code, these provisions shall be construed as continuations of those provisions and not as an amendment to or readoption of the earlier provisions. SECTION 3: California Environmental Quality Act. This Ordinance is not a project under the requirements of the California Environmental Quality Act, together with related State CEQA Guidelines (collectively, “CEQA”) because it has no potential for resulting in physical change in the environment. In the event that this Ordinance is found to be a project under CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility that the action approved may have a significant effect on the environment. CEQA applies only to actions which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. In this circumstance, the proposed action, amendments to the City Code, would have no or only a de minimis effect on the environment. The foregoing determination is made by the City Council in its independent judgment. SECTION 4: Effective Date. This Ordinance shall take effect thirty days after adoption as provided by Government Code Section 36937. 50 HC 09-24-2026 50 of 74 Ordinance No. __________ Page 4 SECTION 5: Publication. The City Clerk shall give notice of adoption of this Ordinance as required by law. Pursuant to Government Code Section 36933, a summary of this Ordinance may be prepared by the City Clerk and published in lieu of publication of the entire text. The City Clerk shall post in the office of the City Clerk a certified copy of the full text of the Ordinance listing the names of the City Council members voting for and against the ordinance. INTRODUCED at a regular [or special] meeting of the Cupertino City Council on [date] and ENACTED at a regular meeting [cannot be enacted at a special meeting unless urgency ordinance] of the Cupertino City Council on [date] by the following vote: Members of the City Council AYES: NOES: ABSENT: ABSTAIN: SIGNED: ______________________ Kitty Moore, Mayor City of Cupertino ________________________ Date _______________________ Lauren Sapudar, City Clerk ________________________ Date _______________________ Floy Andrews, Interim City Attorney Aleshire & Wynder, LLP ________________________ Date 51 HC 09-24-2026 51 of 74 Attachment A – Page 1 ATTACHMENT A – AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO TO CREATE TITLE 4: HOUSING REGULATIONS TO ENACT JUST CAUSE EVICTION PROTECTIONS The sections of the Cupertino Municipal Code set forth below are amended or adopted as follows: Text added to existing provisions is shown in bold double-underlined text (example) and text to be deleted in shown in strikethrough (example). Text in existing provisions is not amended or readopted by this Ordinance. Text in italics is explanatory and is not an amendment to the Code. Where the explanatory text indicates that a new section is being added to the City Code, the new section is shown in plain text. This ordinance amends several portions of the Municipal Code. For ease of review, the amendments advancing the primary objective are presented first followed by conforming amendments. There is a separate heading in bold italics for each portion of the Code being amended. Each portion is shown beginning on a separate page. 1. Amendments to Title 4 establishing the purpose of the Title, definitions of terms used, and administration. TITLE 4: HOUSING REGULATIONS CHAPTER 4.04: GENERAL PROVISIONS 4.04.010 Purposes The purposes of this title shall be to promote housing affordability and stability throughout the City, limit residential displacement, prevent homelessness, and further the goals of the Housing Element through local regulation. 4.04.020 Conflict with other Regulations Where this title imposes a greater protection than imposed or required by any other law, title, ordinance, code, or other regulation, the provisions of this title shall apply. 4.04.030 Definitions 52 HC 09-24-2026 52 of 74 Ordinance No. __________ Page 2 Housing Regulations - Just Cause Eviction Protections- Page 2 Throughout this title the following words and phrases shall have the meanings ascribed in this section. a) “Government agency” includes but is not limited to the City and its departments and officials. b) “Just Cause” means the at-fault causes set forth in Civil Code Section 1946.2(b)(1) and the no-fault causes set forth in Civil Code Section 1946.2(b)(2), with further limitations for terminating residency described in section 4.12.050. c) “Order to vacate” means any order, notice, or placard requiring that a unit be vacated and/or determining that a unit is dangerous or unsafe to occupy. d) "Owner" means any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner. e) “Primary residence” means any dwelling or unit where a person regards as home and has been physically present. A person may only have one (1) primary residence at any given time. Evidence of a person’s primary residence includes, but is not limited to, documentation from income tax statements or a driver’s license. If a residential real property has multiple dwelling units, including accessory dwelling units or apartment complex, each dwelling and accessory dwelling unit shall be considered a separate residence occupied by separate households, subject to any primary residence requirement. Any absence from a residential real property for a period of sixty (60) or more consecutive days shall be deemed a failure to meet a primary residence requirement. f) “Residential real property” means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobile home park. g) “Tenancy” means the lawful occupation of residential real property and includes a lease or sublease. h) “Tenant” means each person who occupies a dwelling unit as their residence, with or without charge, which dwelling unit is owned and leased by another person who has consented to the occupation. Tenant shall also include each person or persons who receive the housing in exchange for all or part of their labor and any family members who lawfully reside in the unit under terms of tenancy or with the knowledge and/or consent of the owner or the owner’s agent. 53 HC 09-24-2026 53 of 74 Ordinance No. __________ Page 3 Housing Regulations - Just Cause Eviction Protections- Page 3 i) “Unit” means any dwelling, structure, or room which is the permanent or customary and usual residence of a tenant. j) “Special Circumstance Household” means a tenant household of residential real property with any of the following characteristics: a. At least one (1) member is sixty-two (62) years of age or older. b. At least one (1) member qualifies as disabled as defined by Title 42, United States Code, Section 423 or handicapped as defined by California Health and Safety Code Section 50072. c. A household with one (1) or more minor children (under eighteen (18) years of age) who are legally dependent (as determined for federal income tax purposes). d. A household that has occupied their unit as their primary residence for five (5) or more consecutive years. k) “Substandard, unsafe, and/or hazardous condition” means any condition not in conformity with the standards contained in the Health and Safety Code; the Uniform Housing Code, California Mechanical Code, California Plumbing Code, Uniform Fire Code, Uniform Building Code, California Electrical Code, and other codes as adopted by the City; and/or other City and State laws and regulations. l) “Substantially repair” or “substantial repairs” means repairs to a unit that cannot be reasonably accomplished in a safe manner that allows the tenant to remain living in the unit and that requires the tenant to vacate the unit for at least thirty (30) consecutive days, including (1) the replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency, or (2) the abatement of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable federal, state, and local laws. Cosmetic improvements alone, including painting, decorating, and minor repairs, or other work that can be performed safely without having the unit vacated, do not qualify as substantial repairs. 4.04.035 Definitions Consistent with Title 19 The meaning of words and phrases used in this title that are not explicitly defined in section 4.04.030 will have the same meaning as defined in section 19.08.030. 4.04.040 Remedies Cumulative 54 HC 09-24-2026 54 of 74 Ordinance No. __________ Page 4 Housing Regulations - Just Cause Eviction Protections- Page 4 All remedies provided for in this title shall be cumulative and not exclusive. 4.04.050 Penalties for Violations Any person, firm, or corporation violating any provision of this title is guilty of a misdemeanor punishable as prescribed by Chapter 1.12 of the City’s Ordinance Code. CHAPTER 4.08: ADMINISTRATION 4.08.010 Purpose and Intent The purpose and intent of the Administration chapter is to establish procedures for the execution of this title and the process for appeals of any requirement, decision, or determination made. 4.08.020 Authority of the Director of Community Development Subject to the provisions of this chapter and the general purpose and intent of this title, the authority of the Director of Community Development, or delegated authority, is as follows: a) Enact the provisions of this title and apply penalties for violations. b) Make reasonable interpretations of the regulations and provisions of this title, and any chapter therein, consistent with the legislative intent. Persons aggrieved by an interpretation of the Director of Community Development may petition the Housing Commission in writing for review of the interpretation. c) May refer an enforcement issue of the title to the Housing Commission for review, decision, or recommendation. d) May refer an enforcement issue of the title to the City Attorney for enforcement and legal remedy. 4.08.030 Authority of the City Attorney Subject to the provisions of this chapter and the general purpose and intent of this title, the authority of the City Attorney, or delegated authority, is as follows: a) The authority and power to enforce this title. 55 HC 09-24-2026 55 of 74 Ordinance No. __________ Page 5 Housing Regulations - Just Cause Eviction Protections- Page 5 b) Authorization to file a civil action on behalf of the City to enjoin any violation(s) of this title and to obtain money damages, injunctive relief, applicable penalties and fines, costs, reasonable attorney’s fees, or other appropriate relief. Upon showing that the owner has acted willfully or with oppression, fraud, or malice, the owner shall be liable for up to three (3) times the actual damages. 4.08.040 Authority of the Housing Commission Subject to the provisions of this chapter and general purpose and intent of this title, the authority of the Housing Commission is as follows: a) Decide on appeals of decisions or issues referred by the Director of Community Development pursuant to Section 4.08.020 (b) & (c) b) Make recommendations to City Council on amendments to the title as the recommending body. c) May refer an enforcement issue of the title to the City Council for review or decision. 4.08.050 Authority of the City Council Subject to the provisions of this chapter and general purpose and intent of this title, the authority of the City Council is as follows: a) Decide on issues referred by the Housing Commission pursuant to Section 4.08.040 (c) 2. Amendments to Title 4 establishing Just Cause eviction protections CHAPTER 4.12: JUST CAUSE EVICTION PROTECTIONS 4.12.010 Purpose The purpose of this chapter is to restate, and expand upon, the just cause eviction protections and relocation assistance requirements in Assembly Bill 1482, to make the protections permanent in the City of Cupertino, to affirm that tenants are entitled to a contractual relationship with a landlord that offers stability and fair treatment and minimizes displacement, and to ensure that adequate relocation assistance is available to tenants who face eviction through no fault of their own. 4.12.020 Findings 56 HC 09-24-2026 56 of 74 Ordinance No. __________ Page 6 Housing Regulations - Just Cause Eviction Protections- Page 6 Pursuant to Civil Code Section 1946.2(g)(1)(B), the City Council hereby makes the following binding findings within this chapter that this chapter and title is more protective than the provisions of Civil Code Section 1946.2 because: a) The just causes for termination of a residential tenancy under this chapter and title are consistent with Civil Code Section 1946.2, and such provisions related to just cause are incorporated by reference into this chapter; and b) This chapter applies eviction protections more broadly to residential real properties, further limits the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts than those available to tenants covered by Civil Code Section 19456.2, and provides additional tenant protections that are not prohibited by any other provision of law. As provided in Civil Code Section 1946.2(g)(2), a residential real property shall not be subject to both a local ordinance requiring just cause for termination of a residential tenancy and Civil Code Section 1946.2. This chapter incorporates Civil Code Section 1946.2 by reference with the intent that the protections of Civil Code Section 1946.2 be extended to apply to residential tenants covered by Civil Code Section 1946.2, as well as to a broader scope of residential real properties; to increase the amount of relocation benefits available to tenants; and that those provisions of this chapter which differ from Civil Code Section 1946.2 supplement and are more protective of residential tenants than Civil Code Section 1946.2. 4.12.030 Exemptions All residential real property shall be protected by this chapter with the exception of residential real properties or residential circumstances referenced in Civil Code Section 1946.2(e)(1) through (6) and (8) through (9). 4.12.040 Notice to Tenant An owner of residential real property subject to this chapter shall provide notice of the applicability of this chapter to the tenant as follows: a) As an addendum to the rental agreement or as a written notice signed by the tenant to confirm receipt, with a copy provided to the tenant. b) The notification or lease provision shall be in no less than 12-point type, and shall include the following: “Your tenancy is protected by Chapter 4.12 of the City of Cupertino Municipal Code, which provides that your landlord must provide a statement of cause in any notice to terminate your tenancy and, under certain circumstances, must provide a relocation assistance payment or rent waiver upon termination. See Chapter 4.12 of the 57 HC 09-24-2026 57 of 74 Ordinance No. __________ Page 7 Housing Regulations - Just Cause Eviction Protections- Page 7 City of Cupertino Municipal Code for more information and visit the City’s website for additional resources, including referrals for suspected violations.” c) For units subject to Civil Code section 1947.12, the notification or lease provision shall also include the following notification or lease provision in no less that 12-point type: “California law limits the amount your rent can be increased. Section 1947.12 of the Civil Code for more information.” d) If the tenant’s rental agreement was negotiated primarily in a language other than English, then the owner shall provide an accurate translation of the notice required by this section in the language in which the rental agreement was negotiated. 4.12.045 Notice of Termination Before an owner of residential real property issues a notice to terminate a tenancy for at- fault just cause based on a curable lease violation, the owner shall first give notice of the violation to the tenant with a reasonable opportunity, which shall not be less that three (3) days excluding Saturdays and Sundays and other judicial holidays, to cure the violation pursuant to Code of Civil Procedure section 1161(3). If the violation is not cured within the time period set forth in the notice, a three-day notice to quit without an opportunity to cure may thereafter be served to terminate the tenancy. If the tenant’s rental agreement was negotiated primarily in a language other than English, then the owner shall provide an accurate translation of the notice of violation in the language in which the language in the rental agreement was negotiated. In addition to any information required by state or federal law, each notice of termination subject to this chapter must include the following: a) The name and address of the owner where the owner will accept service of process. b) The address of the unit. c) The intended final date of occupancy under the tenancy. d) The monthly rent applicable to the tenancy upon delivery of the notice, and, if applicable, the date on which the final monthly rent is due. e) At least one (1) applicable cause for which the tenancy will be terminated, in accordance with section 4.12.050 of this chapter, stating with specificity the basis on which the owner seeks to terminate the tenancy. f) Notice of the tenant’s right to a relocation assistance payment or rent waiver pursuant to this chapter in the event of a termination for no-fault just cause. If the owner elects to waive the rent for the final three (3) or four (4) months of the tenancy as provided in section 4.12.060, as applicable, the notice shall state the amount of rent waived and that 58 HC 09-24-2026 58 of 74 Ordinance No. __________ Page 8 Housing Regulations - Just Cause Eviction Protections- Page 8 no rent is due for the final three (3) or four (4) months of the tenancy. If the owner instead elects to provide direct relocation assistance as provided in section 4.12.060, the notice shall state the amount of relocation assistance owed to the tenant and the date by which payment will be made. g) Notice of the tenant’s right of first refusal pursuant to section 4.12.070 and the owner’s current residential or business address and telephone number in the event of a termination for compliance with a government order or for substantial repairs pursuant to section 4.12.050. h) A written notice terminating a tenancy to carry out substantial repairs pursuant to section 4.12.050 shall also include the information specified in Civil Code section 1946.2(b)(2)(D)(iv). i) A written notice terminating a tenancy for owner move-in pursuant to section 4.12.050 shall also contain the name or names of the intended occupant and their relationship to the owner. The written notice shall additionally include notification that the tenant may request proof that the intended occupant is an owner or related to the owner. The proof shall be provided upon request. j) If the tenant’s rental agreement was negotiated primarily in a language other than English, then the owner shall provide an accurate translation of the notice of termination in the language in which the rental agreement was negotiated. k) Each notice of termination must be delivered to the tenant in accordance with Civil Code sections 1946 and 1946.1, as applicable. 4.12.050 Just Cause Required for Termination of Tenancy by Owner Notwithstanding any other law, an owner of any residential real property shall not take any action to terminate any tenancy or be granted recovery of possession of any residential real property without just cause, which shall be stated in the written notice to terminate the tenancy. Actions to terminate a tenancy include, but are not limited to, making a demand for possession, threatening to terminate a tenancy orally or in writing, serving any notice to quit or other eviction notice, or bringing any action to recover possession. For the purposes of this chapter, “just cause” includes either of the following: a) At-fault just cause, which includes any of the following: i. Default in the payment of rent ii. A breach of a material term of the lease, as described in paragraph (3) of Section 1161 of the Code of Civil Procedure, except the obligation to surrender 59 HC 09-24-2026 59 of 74 Ordinance No. __________ Page 9 Housing Regulations - Just Cause Eviction Protections- Page 9 possession on proper notice as required by law, provided that such terms are reasonable and legal and have been accepted in writing by the tenant. However, the following potential violations of a lease can never be considered violations of a material term for the purposes of this chapter: a. A failure by the tenant to limit occupancy when the additional tenant or tenants who join the tenant household are a dependent child or foster child, a minor in the tenant’s care, the spouse, domestic partner, or parent of a tenant; so long as the total number of tenants in the unit does not exceed the greater of either the maximum number of individuals authorized in the rental agreement or the maximum number of individuals authorized under applicable health, safety, and habitability codes and laws. b. A tenant’s sublease of the rental unit if the following requirements are met: 1. The tenant continues to reside in the rental unit as their primary residence; 2. The sublessee replaces one or more departed tenants under the rental housing agreement on a one-for-one basis; 3. The owner has unreasonably refused to replace one or more departed tenants under the rental housing agreement and unreasonably withheld the right to sublease following written request by the tenant. iii. Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph (4) of Section 1161 of the Code of Civil Procedure. iv. Committing waste as described in paragraph (4) of Section 1161 of the Code of Civil Procedure. v. The tenant had a written lease that terminated on or after January 1, 2027, and after a written request or demand from the owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms do not violate this chapter or any other provision of law. vi. Criminal activity by the tenant on the residential real property, including any common areas, or any criminal activity or criminal threat, as defined in subdivision (a) of Section 422 of the Penal Code, on or off the residential real property, that is directed at any owner or agent of the owner of the residential real property. 60 HC 09-24-2026 60 of 74 Ordinance No. __________ Page 10 Housing Regulations - Just Cause Eviction Protections- Page 10 vii. The tenant has continued, after the owner has served the tenant with written notice to cease, and without good cause, to refuse to grant the owner reasonable access to the rental unit as required by state or local law. viii. Using the premises for an unlawful purpose as described in paragraph (4) of Section 1161 of the Code of Civil Procedure. ix. The employee, agent, or licensee’s failure to vacate after their termination as an employee, agent, or a licensee as described in paragraph (1) of Section 1161 of the Code of Civil Procedure. x. When the tenant fails to deliver possession of the residential real property after providing the owner written notice as provided in Section 1946 of the tenant’s intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the owner, but fails to deliver possession at the time specified in that written notice as described in paragraph (5) of Section 1161 of the Code of Civil Procedure. b) No-fault just case, which includes any of the following: i. The owner seeks, after providing written notice to the tenant pursuant to state law, to recover possession of the residential real property in good faith for use and occupancy as a primary residence by the owner, or the owner’s spouse, domestic partner, children, grandchildren, parents, or grandparents for a minimum of twelve (12) continuous months as that person’s primary residence provided that the owner is a natural person and satisfies the ownership requirements specified in Civil Code section 1946.2(b)(2)(A). The intended occupant shall move into the unit within ninety (90) days after the tenant vacates and occupy the unit as a primary residence for at least twelve (12) months. This subparagraph does not apply if the intended occupant occupies a rental unit on the property or if a vacancy of a similar unit already exists at the property. For leases entered into on or after January 1, 2027, this subparagraph (b)(i) shall apply only if the tenant agrees, in writing, to the termination or if a provision of the lease allows the owner to unilaterally terminate the lease if the owner, or their spouse, domestic partner, children, grandchildren, parents, or grandparents, decides to occupy the residential real property. Addition of a provision allowing the owner to terminate the lease as described in this clause to a new or renewed rental agreement or fixed-term lease constituted addition of a similar provision for the purposes of section 4.12.050(a)(v). ii. The owner seeks in good faith to recover possession to withdraw all units of an entire residential real property from the rental market after providing a minimum notice of one hundred twenty (120) days written notice to all tenants of the residential real property and a minimum of one (1) year written notice to all 61 HC 09-24-2026 61 of 74 Ordinance No. __________ Page 11 Housing Regulations - Just Cause Eviction Protections- Page 11 tenants that are at least sixty-two (62) years old disabled, as that term is defined by Government Code 12955.3 iii. The owners seeks, after providing written notice to the tenant pursuant to state law, to recover possession of the residential real property in good faith to comply with any of the following: a. An order issued by a government agency or court relating to habitability that necessitates vacating the residential real property. b. An order issued by a government agency or court to vacate the residential real property. c. A local ordinance that necessitates vacating the residential real property. If it is determined by any government agency or court that the tenant is at fault of the condition or conditions triggering the order or need to vacate under this clause, the tenant shall not be entitled to relocation assistance as outlined in this chapter. iv. The owner, having obtained all necessary permits from the City, and having provided written notice to the tenant pursuant to state law, seeks in good faith to recover possession of the residential real property to undertake substantial repairs, as that term is defined in section 4.04.030, that are necessary to bring the property into compliance with applicable codes and laws affecting the health and safety of tenants of the building. For the purposes of this subparagraph, a tenant is not required to vacate the residential real property on any days where a tenant could continue living in the residential real property without violating health, safety, and habitability codes and laws. Any written notice terminating a tenancy pursuant to this subparagraph shall include the information required under Civil Code section 1946.2(b)(2)(D)(iv). v. The owner, having obtained all necessary permits from the City, and having provided a minimum of one hundred twenty (12) days written notice to all tenants of the residential real property and a minimum of one (1) year written notice to all tenants that are senior or disabled, as those terms are defined in Government Code section 12955.3, seeks in good faith to recover possession of the residential real property to remove the residential real property permanently from rental housing use through demolition. 4.12.060 Relocation Assistance Required for Termination of Tenancy Based on No-Fault Just Cause a) For a tenancy for which just cause is required to terminate the tenancy under this chapter, if an owner of residential real property issues a termination notice based on a 62 HC 09-24-2026 62 of 74 Ordinance No. __________ Page 12 Housing Regulations - Just Cause Eviction Protections- Page 12 no-fault just cause described in section 4.12.050 the owner shall, regardless of the tenant’s income, provide a full refund of a tenant’s security deposit, except for funds that may be necessary to repair tenant’s damage to property, and do one of the following: i. Assist the tenant or tenants by providing a direct payment to the tenant household in an amount equal to three (3) months of “Fair Market Rent” for the unit according to the “Small Area Fair Market Rents” schedule for the zip code in which the unit is located, as published by the United States Department of Housing and Urban Development and in effect when the owner issued the notice to terminate the tenancy. Special circumstance households will be paid one (1) additional month of rental assistance for a maximum payment equivalent for four (4) months of rent using the same calculation method. The direct payment shall be provided to the tenant within fifteen (15) calendar days of service of the notice of termination but no later than the intended final date of occupancy listed on the notice and, if applicable, no later than the date by which tenant must vacate under an order to vacate issued by a government agency or court. ii. Waive in writing the payment of rent for the final three (3) months the tenancy, prior to the rent becoming due. For Special circumstance households, the payment for final four (4) months of the tenancy must be waived to fulfill this particular requirement. b) The relocation assistance payment or rent waiver required by this section shall be credited against any other relocation assistance required by any other law. c) If an owner issues a notice to terminate a tenancy for no-fault just cause, the owner shall notify the tenant of the tenant’s right to relocation assistance or rent waiver pursuant to this chapter. If the owner elects to waive the rent of the final three (3) or four (4) months of tenancy as provided in paragraph (a)(ii) of this section, the notice to terminate shall state the amount of rent waived and that no rent is due for the final three (3) or four (4) months of the tenancy. If the owner instead elects to provide direct relocation assistance as provided in paragraph (a)(i) of this section, the notice to terminate shall state the amount of relocation assistance owed to the tenant and the date and method by which the payment will be made. If the owner credits the rent waiver or relocation assistance payment against any other relocation assistance required by any other law, the notice to terminate shall state the amount of credit and the law against which the credit applies. d) If a tenant fails to vacate after the expiration of the notice to terminate the tenancy, an amount up to the actual amount of any relocation assistance or rent waiver provided pursuant to this section shall be recoverable by the owner in an action to recover possession. This section does not limit other damages that may be recoverable by owner. 63 HC 09-24-2026 63 of 74 Ordinance No. __________ Page 13 Housing Regulations - Just Cause Eviction Protections- Page 13 4.12.065 Relocation Assistance Required Upon Order to Vacate Due to Substandard, Unsafe, and/or Hazardous Conditions a) Whenever any tenant must vacate a unit in response to a government agency issuing an order to vacate due to a substandard, unsafe, and/or hazardous condition, the owner shall comply with the requirements of this section. In addition to the residential real properties subject to this chapter, this section shall apply to the properties or residential circumstances referenced in Civil Code Section 1946.2(e)(6) and (8) through (9). b) The requirements of this section do not apply if: i. Each substandard, unsafe, and/or hazardous condition that is a basis for the order to vacate is created by a fire, flood, earthquake, or other extraordinary event that is beyond the control of the owner, provided: 1. The actions or omissions of the owner or the owner’s agents did not contribute to the event’s impact on the unit; and 2. The tenant was not already entitled to relocation assistance under the provisions of this chapter at the time of the event. c) A tenant who vacates a unit due to an order to vacate issued by a government agency due to a substandard, unsafe, and/or hazardous condition shall receive a full refund of the tenant’s security deposit, except for funds that may be necessary to repair tenant’s damage to property, and the following relocation assistance from the owner: i. The owner shall provide the tenant with a direct payment in an amount equal to three (3) months of “Fair Market Rent” for the unit according to the “Small Area Fair Market Rents” schedule for the zip code in which the unit is located, as published by the Untied States Department of Housing and Urban Development and in effect when the government agency issued the order to vacate. Special circumstance households will be paid one (1) additional month of rental assistance for a maximum payment equivalent for four (4) months of rent using the same calculation method. The direct payment shall be provided to the tenant no later than the date by which the tenant must vacate under the order to vacate or, if the owner issues a notice of termination based on the order to vacate, within fifteen (15) calendar days of service of a notice of termination, whichever is earlier. If the owner has already paid relocation assistance or waived rent in compliance with section 4.12.060, the owner is not required to make additional payment of relocation assistance pursuant to this paragraph. ii. An owner shall, in addition to making the required relocation assistance payment, refund paid rent as follows: 64 HC 09-24-2026 64 of 74 Ordinance No. __________ Page 14 Housing Regulations - Just Cause Eviction Protections- Page 14 1. If the order to vacate requires that a tenant vacate the unit prior to the date through which the tenant has already paid rent, the owner shall refund the tenant on a pro-rata basis for the days which the tenant has paid rent but cannot occupy the unit under the order to vacate. (For example, if the tenant has already paid rent for the month of April and an order to vacate requires the tenant to vacate on April 15, the owner shall refund the tenant half the rent paid for April because the tenant cannot occupy the unit from April 16 through April 30 under the order to vacate.) 2. The owner shall refund the rent no later than the date by which the tenant must vacate under the order to vacate. 3. The amount of any rent refunded shall be stated in the notice of termination required by section 4.12.045. d) As an alternative to the provisions of paragraph (c) of this section, an owner and a tenant may agree to continue the tenancy relationship by transferring the tenant to an adequate and legal substitute unit for the entire period that the tenant is required to vacate the original unit. Acceptance of a substitute unit is at tenant’s option and the tenant’s refusal to accept a substitute unit does not relieve the owner of their obligation to make direct relocation assistance payments under paragraph (c) of this section. The substitute unit shall be provided at no additional expense to the tenant. In addition, the owner shall pay all reasonable costs of the tenant’s relocation to and from the substitute housing, including reasonable packing and moving costs. i. The substitute unit shall be free of substandard, unsafe, and/or hazardous conditions and shall consist of an equivalent or better size and type of unit in a location of equivalent or better convenience to the tenant, as determined by the tenant. ii. Once the order to vacate the original unit is lifted and the original unit is deemed safe to occupy by a government agency, the owner shall either allow the tenant to remain in the substitute unit or return to the original unit, at the tenant’s option. iii. It shall be unlawful for the owner to increase the amount of rent owed by the tant or impose new or increased fees, either for the substitute unit or after return to the original unit, until at least one (1) year after the date that the tenant transfers to a substitute unit or ninety (90) days after a government agency lifts the order to vacate and deems the original unit safe to occupy, whichever is sooner. iv. Before transferring the tenant to an agreed upon substitute unit, the owner shall provide a notice to the tenant that includes the following information: 65 HC 09-24-2026 65 of 74 Ordinance No. __________ Page 15 Housing Regulations - Just Cause Eviction Protections- Page 15 1. The name and contact information of the owner. 2. A copy of the order to vacate issued by the government agency. 3. The address of the unit to be vacated. 4. The address of the agreed upon substitute unit. 5. The date(s) on which the tenant shall transfer from the unit subject to the order to vacate to the agreed upon substitute unit. 6. The monthly rent applicable to the tenancy at the time of issuance of the order to vacate by the government agency. 7. A statement that the owner may not increase the amount of rent owed by the tenant (either for the substitute unit or after return to the original unit) until at least one (1) year after the date that the tenant transfers to the substitute unit or ninety (90) days after a government agency lifts the order to vacate and deems the original unit safe to occupy, whichever is sooner. 8. A statement that the owner will pay all costs of the tenant’s relocation to the substitute housing, and an explanation of how such costs will be paid by the owner. v. Any subsequent action by the owner to terminate the tenancy is subject to the just cause and other provisions of this chapter, including relocation assistance requirements. 4.12.070 Right of First Refusal a) Any tenant evicted or required to vacate any unit for compliance with a government order pursuant to section 4.12.050(b)(iii) or substantial repairs pursuant to section 4.12.050(b)(iv) shall be given the right of first refusal to reoccupy a unit on the site. To the extent that the unit can legally accommodate the displaced tenant, the right of first refusal shall be applicable within one hundred eighty (180) days of the date that such unit becomes habitable, or replacement rental or employee housing is developed on the site. i. The owner of such unit shall, in the notice of termination, advise the tenant of the right of first refusal option. Said notice shall include the owner’s current residential or business address and telephone number. 66 HC 09-24-2026 66 of 74 Ordinance No. __________ Page 16 Housing Regulations - Just Cause Eviction Protections- Page 16 ii. At the time the tenant vacates, the owner shall request that the tenant provide the owner with their current address and telephone number, which the owner will use for future notification. iii. Thereafter, when such unit has been rehabilitated, or replacement housing on the same site becomes habitable, the owner shall give written notice to the tenant advising such tenant that the unit is ready for occupancy. Such notice shall be made by certified mail, return receipt requested, to the address provided by the tenant. Such notice shall be provided in the same language as the original written rental agreement. iv. If the tenant does not respond to the notice within 14 days of the notice, or the owner is unable to locate the tenant upon the owner’s good faith effort to locate the tenant, or the tenant refuses to provided their current address and telephone number when requested by the owner for the purposes of notice under this section, the owner shall be deemed to have complied with this section, and the tenant’s right of first refusal shall be forfeited. b) Any tenant evicted or required to vacate any unit for owner move-in pursuant to section 4.12.050(i) shall be given the right of first refusal to reoccupy a unit on the site under the following circumstances. i. If the intended occupant fails to occupy the unit within ninety (90) days after the tenant vacates or fails to occupy the unit as their primary residence for at least twelve (12) consecutive months, the owner shall offer the unit to the tenant who vacated it at the same rent and lease terms in effect at the time the tenant vacated and shall reimburse the tenant for reasonable moving expenses incurred in excess of any relocation assistance that was paid to the tenant in connection with the written notice. ii. If the intended occupant moves into the rental unit within ninety (90) days after the tenant vacates, but dies before having occupied the unit as a primary residents for twelve (12) months, as required by section 4.12.050(i), this will not be considered a failure to comply with this section or a material violation of this chapter by the owner. iii. For a new tenancy commenced during the twelve (12) months after the tenant vacates pursuant to section 4.12.050(i), the accommodations shall be offered and rented or leased at the lawful rent in effect at the time of any notice of termination of tenancy is served. 4.12.080 Waiver of Rights 67 HC 09-24-2026 67 of 74 Ordinance No. __________ Page 17 Housing Regulations - Just Cause Eviction Protections- Page 17 Any waiver or purported waiver by a tenant of rights granted under this chapter prior to the time when such rights may be exercised shall be void as contrary to public policy. It shall be unlawful for an owner to attempt to seek to waive, or to waive, in a written or oral rental agreement, the rights granted a tenant under this chapter prior to the execution of, or as a condition of entering into or extending, a written or oral rental agreement. Notwithstanding the foregoing prohibitions in this section, this chapter shall not expand or limit an owner and tenant’s ability to negotiate or agree to end a tenancy voluntarily in exchange for money or other consideration. 4.12.085 Anti-Retaliation Provision An owner is prohibited from retaliating against a tenant for lawfully and peaceably exercising their legal rights granted by this chapter. No owner may take any action increasing any rental amount or reducing any service to cause the tenant to involuntarily quit the premises because of the tenant’s use of any remedy provided by this chapter. Owners may not discriminate against the tenant, terminate any tenancy, or otherwise recover possession of a residential real property in retaliation for the tenant reporting violations of this chapter or health, safety, and habitability codes and laws. Similarly, owners may not retaliate against tenants for forming or participating in a tenant organization. For the purposes of this chapter, actions to terminate any tenancy or otherwise recover possession of a residential real property shall include disclosing or threatening to disclose to immigration authorities information regarding the immigration or citizenship status of any tenant or any individual known by the owner to be associated with the tenant. This chapter does not prohibit a landlord from complying with any legal obligation under federal law. 4.12.090 Enforcement In the event of a violation of this chapter, a residential tenant may institute a civil proceeding for injunctive relief, money damages, and whatever other relief the court deems appropriate. The remedy available under this section shall be in addition to any other existing remedies which may be available to the residential tenant under local, county, state or federal law. In addition, this chapter grants the following penalties and remedies for violations: a) An owner’s failure to comply with any provision of this chapter shall render the written termination notice void. b) An owner’s failure to comply with this chapter, including but not limited to the identification of an applicable cause for termination and delivery of a completed notice of termination as described in section 4.12.050 in accordance with section 4.12.045, shall be an affirmative defense to an unlawful detainer action by an owner. 68 HC 09-24-2026 68 of 74 Ordinance No. __________ Page 18 Housing Regulations - Just Cause Eviction Protections- Page 18 c) If an owner fails to timely pay any relocation assistance payments required under section 4.12.060 or section 4.12.065 by the deadlines set forth in those sections, then the amount of relocation assistance due to the tenant household shall increase by $100 for each day that the payment is overdue, until paid by the owner, up to a maximum of double the amount of relocation assistance due under section 4.12.060 or section 4.12.065. If the applicable cause for termination given by the owner is to complete substantial repairs or demolition, and the owner has failed to timely pay relocation assistance payments required, the Community Development Director may withhold issuing or scheduling the applicable permits, certificates, or inspections until the required payment and any additional penalty is paid to the tenant. d) Whenever an owner attempts to prevent a tenant from acquiring any rights under this chapter, retaliates against a tenant or tenant household for the exercise of any rights under this chapter, engages in activities prohibited under this chapter, or otherwise violates this chapter, the tenant or tenant household may institute a civil proceeding for money damages or injunctive relief, or both. This section creates a private right of action to enforce all terms, rights, and obligations under this chapter. Whoever is found to have violated this chapter shall be subject to appropriate injunctive relief and shall be liable for damages, costs, and reasonable attorneys’ fees, and whatever other relief the court deems appropriate. Upon a showing that the owner has acted willfully or with oppression, fraud, or malice, the owner shall be liable for up to three (3) times the actual damages. An award may also be entered for punitive damages for the benefit of the tenant against the owner. e) Any tenant may bring a civil action to determine the applicability of this chapter to the tenancy. f) Nothing herein shall be deemed to interfere with the right of an owner to file an action against a tenant or non-tenant third party for the damage done to said owner’s property. Nothing herein is intended to limit the damages recoverable by any party through a private action. g) The remedies and penalties provided for in this chapter shall be in addition to any other available remedies and penalties provided for by the City Municipal Code or other law. 69 HC 09-24-2026 69 of 74 HOUSING COMMISSION CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3308 CUPERTINO.GOV Date: June 4, 2026 To: Cupertino City Council From: Usha Narayan, Chair, Housing Commission Re: Inclusion of tenant protection and anti-displacement policies into the City Work Plan (CWP) under the Housing priority. To the Honorable Mayor Moore and City Council; during a public meeting on December 8, 2025, the Housing Commission held a study session on programs and policies to address displacement caused by evictions and rising rents in accordance with Housing Element Strategy HE-3.3.6. Unlike previous actions that have been taken to prevent renter displacement in the Below Market Rate (BMR) program, this type of displacement is faced by low-income renters in market-rate units, who are affected by fluctuations in rental rates and commonly face eviction due to non-payment of rent. Low-income households are disproportionately rent burdened and have limited options for finding alternative housing and are therefore more likely to face homelessness due to high rent increases. The Housing Commission received a presentation from staff on potential actions to address displacement, and after deliberation, voted in favor (4-0-0-0) of expanding one existing rent mediation program, adding one new tenant legal service program, and exploring three potential ordinances for providing local protections to vulnerable households. While the housing programs to assist low-income renters are able to be identified and recommended for funding by the Housing Commission through the annual housing program Notice of Funding Available (NOFA) process, the ordinances must be proposed to, and approved by, the City Council. To ensure that the City is able to adopt a policy that is aligned with regional and state housing laws, the Housing Commission finds it prudent to assess each proposed policy individually prior to their proposal to the City Council. The Housing Commission will be assessing legal defensibility, financial feasibility, and staff capacity for implementation, as well as ensuring that the proposed ordinances are consistent with the Housing Commission’s policy goals. To achieve this, the Housing Commission is requesting that the City Council add the further study and proposal for the three potential tenant protection ordinances to the CWP for the remainder of the 2023-2031 Housing Element planning period. This action will satisfy the Housing Element requirement to propose a tenant protection implementation plan to the Council in June 2026. The proposed CWP item is as follows: 70 HC 09-24-2026 70 of 74 Table 1: Proposed City Work Plan Item # Project Title Project Description Council Goal Est budget (Not including Project Size Lead Depart ments Estimated Timeline Protection Implementation Plan through the annual housing funding process such as rent mediation and tenant legal services. 20.2 Study, draft, and propose potential low-income tenant protection ordinances such as eviction protections, rent stabilization, and/or deposit/fee regulations start 3 end 71 HC 09-24-2026 71 of 74 This action will both demonstrate the City’s progress in meeting the policy requirements of the Housing Element while also providing staff the necessary timeline to study neighboring jurisdictions for best practices, draft the ordinance, propose to the Housing Commission, solicit community feedback, revise the ordinance as necessary, and then bring the policy to the City Council for adoption. As an ongoing CWP item, staff will be able to fit this task into the existing workload without impacting other project deadlines. Thank you for your time and consideration for this matter. Sincerely, Usha Narayan Chair, Housing Commission UNarayan@cupertino.gov 72 HC 09-24-2026 72 of 74 CITY OF CUPERTINO Agenda Item Subject: Upcoming Draft Agenda Items CITY OF CUPERTINO Printed on 9/18/2026Page 1 of 1 73 HC 09-24-2026 73 of 74 HOUSING COMMISSION   UPCOMING DRAFT AGENDA ITEMS    October 22, 2026    ‐ Outreach of City services for low‐income people (Tentative)                                                          Subject to Change. Chair and Staff Liaison coordinate on Commission agendas.  74 HC 09-24-2026 74 of 74