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PC Reso 6762 GPA-2013-02 CITY OF CUPERTTNO 10300 Torre Avenue Cupertino, California 95014 RESOLUTION NO. 6762 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF CUPERTINO RECOMMENDING THAT CITY COUNCIL AUTHORIZE SUBMITTAL OF THE DRAFT HOUSING ELEMENT TO THE STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT(HCD) FOR REVIEW AND CERTIFICATION AND USE OF THE PRIORITIZED LIST OF POTENTIAL HOUSING ELEMENT SITES WITH THE HCD, IF NEEDED The Planning Coxnmission hereby recommends that the City Council, in substantially similar form to the draft Resolution, attached hereto as Attachment HE, authorize: 1. Submittal of the draft housing element and technical appendix to the State Department of Housing and Community Development for review and certification (Application No. GPA- 2013-01) with the following amendments related to the recommended Priority Housing Sites: No. Site Name Density and Realistic Capacity (85%of max. density) Recommended Housing Element Sites 1. The Oaks 25 du/ac (150 du maximum) 2. Ham tons (342 units existin ) 103 du/ac (748 du additional) 3. United Furniture+other 25 du/ac (103 du) 4. Bar Swenson 25 du/ac (11 du) 5. Glenbrooks (517 units existin ) 23 du/ac (228 additional) 6. Summerwinds&Granite Rock 25 du/ac (96 du) 2. Use of the prioritized list of potential housing element sites with the HCD, if needed as follows: No. Site Name Density and Realistic Capacity (85% of max. density) 1. Villa es (468 units existin ) 20 du/ac (62 du additional) 2. Marina Plaza 35 du/ac (204 du) 3. Carl Ber 25 du/ac (169 du) PASSED AND ADOPTED this 20� day of October 2014, at a Regular Meeting of the Planning Commission of the City of Cupertino by the following roll call vote: AYES: COMMISSIONERS: Chair Brophy, Vice Chair Lee, Sun, and Gong NOES: COMMISSIONERS: none ABSTAIN: COMMISSIONERS: none ABSENT: COMMISSIONERS: Takahashi ATTEST: APPROVED: Aarti Shrivastava Paul Brophy, h ir Assistant City Manager Planning Co is i -2- ATTACHMENT HE CITY OF CUPERTINO 10300 Torre Avenue Cupertino, California 95014 RESOLUTION NO. 14-XXXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO RECOMMENDING THAT CITY COUNCIL AUTHORIZE SUBMITTAL OF THE DRAFT HOUSING ELEMENT TO THE STATE DEPART'MENT OF HOUSING AND COMMUNITY DEVELOPMENT(HCD) FOR REVIEW AND CERTIFICATION AND USE OF THE PRIORITIZED LIST OF POTENTIAL HOUSING ELEMENT SITES WITH THE HCD,IF NEEDED SECTION I: PROTECT DESCRIPTION Application No: GPA-2013-01 Applicant: City of Cupertino Location: Citywide SECTION II: RECITALS WHEREAS pursuant to City Council direction to initiate a project to replenish, reallocate and increase citywide development allocations in order to plan for anticipated future development activity while keeping with the community's character, goals, and objectives and to consolidate development requests by several property owners for amendments to the General Plan, under a comprehensive community vision, and WHEREAS, pursuant to State Housing Law, the City Council has directed staff to update the Housing Element of the General Plan and make associated zoning amendments to comply with State Law; and WHEREAS, immediately prior to the Council's consideration of this Housing Element draft, and following the Commission's recommendation, the Council adopted Resolution No. XXX, adopting a General Plan Amendment covering the properties which are the subject of this Housing Element draft; and WHEREAS, the draft Housing Element will be consistent with the City's General Plan land use map, proposed uses and surrounding uses; and WHEREAS, the consideration of the Draft Housing Element is part of the General Plan Amendment, Housing Element Update and Associate Rezoning, all as fully described and analyzed in the June 2014 General Plan Amendment, Housing Element Update, and Associated Rezoning Project Environmental Impact Report ("Draft EIR") (State Clearinghouse No. 2014032007), as amended by text revisions in the August 2014 General Plan Amendment, Housing Element Update and Associated Rezoning Project EIR Response to Comments Document ("Response to Comments Document") and Supplemental Text Revisions dated October 8, 2014 (together, the "Final EIR"); WHEREAS, the Final EIR was presented to the Planning Commission on September 9, 2014 at a Planning Commission Study Session; and WHEREAS, the Final EIR was presented to the City Council on October 7, 2014 at a City Council Study Session; and WHEREAS, the necessary public notices have been given as required by the procedural ordinances of the City of Cupertino and the Government Code, and the Planning Commission held a public hearing on October 14, 2014 to consider the project; and WHEREAS, based on substantial evidence in the administrative record, on October 14, 2014 the Planning Commission recommended that the City Council certify that the Final EIR has been completed in compliance with the California Environmental Quality Act, Public Resources Code Section 21000 et seq., and reflects the independent judgment and analysis of the City, adopt the Findings and Statement of Overriding Considerations, and implement all of the mitigation measures for the Project that are within the responsibility and jurisdiction of the City that are identified in Findings (Resolution no. 6760); and WHEREAS, on October 14, 2014, the Planning Commission recommended on a X-X vote that the City Council adopt the General Plan Amendment (GPA-2013-01) (Resolution no. 6761); authorize staff to forward the Draft Housing Element to the State Department of Housing and Community Development for review and certification (GPA-2013-02); approve the prioritized list of potential Housing Element sites in the event amendments are needed to the proposed Housing Element sites upon HCD review (Resolution no. 6762); approve the Zoning Map Amendments, Z-2014-OX, in substantially similar form to the Resolution presented (Resolution no. 6763); approve the Municipal Code Amendments to make changes to conform to the General Plan and Housing Element and other clean up text edits (MCA-2014-01) (Resolution no. 6764); approve the Specific Plan Amendments, SPA-2014-01, in substantially similar farm to the Resolution presented (Resolution no. 6765); and WHEREAS, upon due notice, the City Council has held at least one public hearing to consider the draft Housing Element and prioritization of the potential sites; and WHEREAS, the City Council of the City of Cupertino is the decision-making body for this Resolution; WHEREAS, prior to taking action on this Resolution, the City Council has exercised its independent judgment in carefully considering the information in the EIR and finds that scope of this draft Housing Element falls within the previously certified EIR; and NOW,THEREFORE,BE IT RESOLVED: After careful consideration of the, maps, facts, exhibits, testimony and other evidence submitted in this matter, the City Council authorizes: 1. Submittal of the draft housing element and technical appendix to the State Department of Housing and Community Development for review and certification (Application No. GPA- 2013-01) as shown in Exhibit HE-1; and -3- 2. Use of the prioritized list of potential housing element sites with the HCD, if needed, as shown in Exhibit HE-2. PASSED AND ADOPTED this day of November 2014, at a Regular Meeting of the City Council of the City of Cupertino by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: APPROVED: Grace Schmidt Gilbert Wong, City Clerk Mayor, City of Cupertino -4- : , , ;. 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Mq4"gr"{�. ,�vJ^" � i��.� �,�,'�� �' � �,� t � `k "� M"� ,�'4#g h.�'", �6 � t" n,.�� ������'a'� � � "� "'�" � '� ka� r� J a'C 5���„ s x ,t � g t E m, a,�� � d��,° 4'."C }. ..1F�t+.i x°��" `�,` � ,7. �r'.�"S x�' t 5?.z a „L'" t�" :�r+��+" � 05. .� �a � q �$� � a r ,x� � ���� �A s�r � ��� '�� �':rry ;� �� � ���a � �' r n �t ,a� +� ° � a � � �g � � �' � �� �"�'�t ��� � A� � ������ , �� �� �.s� s m :��3" aa�,".�§� . aa:�''� �, . � F �s�. �,�.�p • � i��m�� 5k 3 „s �^ `' ,,. �, � � � � 1'��" �` ��''�4'�'S �" ��' ��� Y:.r `S `',F��° � ± fi�r`y��n� r �` �, �+�� � �,�,�^��,� 5 � . � �I �. r v." �la ,,,�, �' � ��'rl�_t� f:r�',�.'.���L�r'f`� ,� •�t �,�"st���'�� � `4 � 's ���t^�'"�a �?Y� ���"�,�q'� 'P . � a �"�+k a���4;. F.. �,y "' t� ?'� ��"�'' w., ��5;� "'�SgY �' ,�y `,� �"Ut '�'�'*�,p'� , �, ti �"�� 5�kf r�� ��,w �t'?'�,�+�* �� , � a�",h � '" + �i;� .�'�"�'`k�'{ � '�„^'a,�"?, t� � ; }�a, ''i" �a,$ :r� � �+�i'a �� +' w*s 'C'""�.^ F � ;+ ,� � e� � -�� , � '^a R� ,�'< ,� � m;�„ v 3 � 2 $ ;,��"` � ���`i'� ''� �rp +}t °� ��"G4k+'�� � y°�� b'�'+�"��� 3 ,�" ,����''� w ,} . - i�„t� �` afi� w� ° .i,,.a� �r�?����°3�'��.R a��,n �,��r"�',�3'.�< �n°�"�:^ ra'���vi,�� ;�� �,�r T��,w,.at���.a,. ,���'`s�s, ; �• . . � . �. . . .. i^ . . . � . . . . . CHAPTER 4 Housing Element Y sR ]".,�`�i o-«'""�ia.^ a�/'�:e...�..,t r""`';'P,,'� . Cupertino is a community with a high quality of life, a .. . renowned school system, and a robust high-technology '• ' - � • ' • economy. The long term vitality of Cupertino and the , . � _, local economy depend upon the availability of all types of � _ housing to meet the community's diverse housing needs. �- " '' - ' .- . As Cupertino looks towards the future, increasing the range . . . and diversity of housing options will be integral to the . . . City's success. Consistent with the goal of being a balanced . . . - •- . -. . community, this Housing Element continues the City's � � � - . commitment to ensuring new opportunities for residential � . � . development, as well as for preserving and enhancing our • • ' � • existing neighborhoods. ' ' " • -. s. _ Role and Content of Housing Element The Housing Element is a comprehensive eight-year plan to address housing needs in Cupertino. This updated Housing Element focuses on housing needs from January 31, 2015 through January 31, 2023, in accordance with the housing element planning period established by State law for San Francisco Bay Area jurisdictions. This Housing Element is the City's primary policy document regarding the development, rehabilitation, and preservation of housing for all economic segments of the population. Per State Housing Element law, the document must be periodically updated to: ■ Outline the community's housing production objectives consistent with State and regional growth projections ■ Describe goals, policies and implementation strategies to achieve local housing objectives ■ Examine the local need for housing with a focus on special needs populations DRAFT H E-3 2040 GENERAL PLAN City of Cupertino ■ Identify adequate sites for the production of housing < , �,; �',�� serving various income levels �." ,,r" , � r�'"°� • Analyze potential constraints to new housing production �� ,� ' ■ Evaluate the Housing Element for consistency with other �� � �� r � � General Plan elements ,� ,�� ti ' �,` ; "� ��: �';� This element outlines the community's projected housing t � . �.�; r -' " .� ''°' ' - needs and defines the actions the City will take to .. �t � address them. General Plan Appendix B provides detailed �r� �� background information to meet all requirements of State �' � �`� � �� � �a Housing Element law. ��.� ; . 4 , � � � �µ,�.,� —. � , � ,.�; + .n � S�'�" , �. ,�.* �. ", „„ _ ����� This section describes the demographic, housing, and N � � �� ..�__-_....�.._...,---.�_ economic conditions in Cupertino; assesses the demand � � �� for housing for households at all income levels; and �,� �,�,�,,, ���, ����ds Assessr�,e�� ��� �nes documents the demand for housing to serve special needs rhe tramework for det�n�n� rh� c �}s populations. The Housing Needs Assessment establishes housing qoals and needs the framework for defining the City's housing goals and formulating policies and ptrategies that address local housing needs. A community's population characteristics can affect the amount and type of housing needed. Factors such as population growth, household type, and whether or not households are more likely to rent or buy their homes influence the type of housing needed. H E-4 DRAFT CHAPTER 4 Housing Element Demographic Trends in Cupertino and the Region . Population � , � �� � , ��-e � ,. �-.���- � �. :.�� , "'��� " ��`.� The Citys population increased by 15 percent between ,�m.,� " ���, �� � � -' ��e. 4. �,..� � 2000 and 2010, exceeding the growth rate of Santa Clara � � � — �urv ,. �" c�.t County (six percent), the San Francisco Bay area (five • ��• , ; Y s ` '`," ;,� percent), and the State of California (10 percent) (see �,�.. -,_,�,� � � , Table HE-1). During this period, Cupertino grew from �" �„`` """ 50,546 to 58,302 residents. A portion of this population placed new pressures on Cupertino's growth can be attributed to the annexation of 168 acres ��e�ghborhoods of land between 2000 and 2008. Annexation of Garden Gate, Monta Vista, and scattered County "islands" added 1,600 new residents. After removing the population increases from these annexations, Cupertino experienced a 12-percent increase in its population during the previous decade. Households A household is defined as a person or group of persons living in a housing unit, as opposed to persons living in group quarters, such as dormitories, convalescent homes, or prisons. In 2010, Cupertino was home to 20,181 households (see Table HE-1). The City added approximately 2,000 new households between 2000 and 2010, an increase of 11 percent. Approximately 600 of these households, however, resulted from annexations. After adjusting for household increases due to annexation, the number of households grew by only eight percent between 2000 and 2010. During the same time period, the number of households increased by 6.8 percent in Santa Clara County. Household Type Households are divided into two difFerent types, depending on their composition. Family households are those consisting of two or more related persons living together. DRAFT H E-5 2040 GENERAL PLAN City of Cupertino Non-family households include persons who live alone , � TM � !^� ���q or in groups of unrelated individuals. Cupertino has a g :__�__ _�`�_ �,-� large proportion of family households. In 2011, family � G�� �., �a� . ` households comprised 77 percent of all households in j �; � ' ('� � �' ¢� � ��� �� the Cit com ared with 71 ercent of Santa Clara Count .� � 1�r� I � ' �' ' � Y, p p Y �� +� � ���� � � households (see Table HE-1). rg. ■ I ����� + � �� i (� !'=� � � � �`�� r ..�. .'�"'�� ��' Household Tenure � .� T 1 f �y!� r S.� '�$".' .. ��':h. .. . .M. .'4..��l`�,�� . . . , ; `;� ,; Households in Cupertino are more likely to own than proportions of household type ui cu�P�r,��o rent their homes. Approximately 63 percent of Cupertino households owned their homes in 2010. By comparison, 58 percent of Santa Clara County households owned homes (see Table HE-1). Long-term Projections Table HE-2 on page HE-7 shows population, household, and job growth projections for Cupertino, Santa Clara County, and the nine-county Bay Area region between 2010 and 2040 and represents the analysis conducted by the Association of Bay Area Governments (ABAG) using 2010 Census data and a variety of local sources. Between 2010 and 2040, Cupertino's population is expected to grow by 12,898 residents—from 58,302 to 71,200. This translates into an increase of 22 percent over 30 years. ABAG projects both Santa Clara County and the ABAG region will experience much larger growth over the same time period (36 percent and 31 percent, respectively). Cupertino's job growth is expected to continue to outpace population and household growth between 2010 and 2020, compounding the "jobs rich" nature of the City and the region. By 2020, Cupertino is anticipated to have a jobs-to- housing ratio of 1.40 (up from 1.29 in 2010, but mirroring the regional average of 1.40). Job growth in Cupertino is projected to level off after 2020 to a comparable pace with population and household growth. Similar trends are also projected for the County and the ABAG region as a whole. H E-5 DRAFT CHAPTER 4 Hous�ng E!ement ' : ' • ' ' • ' � • • � � 111 1 1 � ���� d� 9�� , �,��1��r'�s}p 2 ("�°'��, s .,.�.�� �¢,P^3 c�^�.J - • ° 3 K �!1 1 ; �q�q 1 gx��s4 a x i ,,„�,€� �� �eaa� � Aa„ktu ���: �e`:C+k�a� �p t�p?: X^("T,a.�+'� w`''ip. 9?� 9;� s s96 e x Y� � �' Y 4 r� ¢ x ry#�7§� b n y i "i"P � ��� � & "2� ^��. ' ���' 6� 4 � �°� �� , .�'° ., . . . .,.. .9, ..r.,,�4 ..bKGF.,�'.,,"�«,"si�,,,�i .W . a. . ,. , � . ,. .,,.,'`��z�..� ,�, ,>"�. .,, �;.,N,,,���.o,orv .,om , City of Cupertino Population 50,546 58,302 7,756 15.3% Households 18,204 20,181 1,977 10.9% Average Household Size(a) 2.75 2.83 Household Type(a) Families 74.8% 77.4% Non-Families 25.2% 22.6% Tenure Owner 63.6% 62.6% Renter 36.4% 37.4% Santa Clara County Population 1,682,585 1,781,642 99,057 5.9% Households 565,863 604,204 38,341 6.8% Average Household Size(a) 2.92 2.89 Household Type(a) Families 69.9% 70.8% Non-Families 30.1% 292% Tenure Owner 59.8% 57.6% Renter 40.2% 42.4% Bay Area(b) Population 6,783,760 7,150,739 366,979 5.4% Households 2,466,019 2,608,023 142,004 5.8% Average Household Size(a) 2.69 2.69 Household Type(a) Families 64.7% 64.8% Non-Families 35.3% 35.2% Tenure Owner 57.7% 56.2% Renter 42.3% 43.8% California Population 33,871,648 37,253,956 3,382,308 10.0% Households 11,502,870 12,577,498 1,074,628 9.3% Average Household Size(a) 2.87 2.91 Household Type(a) Families 68.9% 68.6% Non-Families 31.1% 31.4% Tenure Owner 56.9% 55.9% Renter 43.1% 44.1% Notes: (a)Average household size and household type figures from American Community Survey(ACS), 2007-2011. (b)Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma Counties. Source:Association of Bay Area Governments(ABAG), Housing Element Data Profiles, December 2013. DRAFT H E- 7 2040 GENERAL PLAN City of Cupertino �.y��4,�� ;�;,,.�' ��.K� ,�� r�*`'`�``��� Housing Stock Characteristics ��� .ti�.%ir� .f,,;,`" ��^4 � .J' r� a j r�<��+t�ssf r T\: / ��- ` -��;; ��; °,�y �>'�"i` �"�'�"S =�' �;�, � A communit 's housin stock is defined as the collection �,�-��,ti; F��.,�-!.�-���� ��,�.�`�K���,� Y g ! r s`�%., � .G87.5- ��,��ti,a� •; � � -� �`�,. of all types of housing located within the jurisdiction. The '�° "` °s2�w" `� �..�1� ?'������c.'� ,�' �'"s;�''�' � �`�.+;�'� e�.,� � � YiE , characteristics of the housing stock-including condition, y`"nf~ � ���' ��'�'""� j � �'��'�'�� '" t e, and affordabilit are im ortant in determinin the �.�j'' ��' �.�.�, �:� YP Y- P 9 �' Y « ;�� �: ����� �''�� : � ` housing needs for Cupertino. '�:-.� � ��C.y j' �.�� '.� ,r� � '"�- _.---_� �' 4° �� Distribution of Units by Structure Type � �Yh _� � �`--- �,.�� � to increase by twenty two percent over the A majority of housing units in Cupertino are single- „�Xi rf„rty yea�s family detached homes (57 percent in 2013). While still representing the majority house type, this represents a decrease from 2000, when 61 percent of all homes were single-family detached. In comparison, single-family detached homes in both Santa Clara County and the Bay Area comprised 54 percent of all homes in 2013. Large multi-family buildings (defined as units in structures containing five or more dwellings) represent the second ' : ' • ' ` • • • � � � • : " • • 1 1 . 1 � 1 ,. r. ,r � d� �{44 Y ..' s!� .'ato-.�.„y y� ...,, r� i i!i;°'YIPI�I Y 6 YI�Yc"I,'P�. � . � ��++#sf� ` i9 r , 1 i � ,w)#��. ��, � �� 1� � Y „.a .�.a p � � �"4�?a �"' ,.#r yl%C�u�� k ,� a q g C"3 g•�r� �� � .n � r 1 � � �� "� R7 t"�. a r���M�.�` , .. ��d� . ., r� a ,.:�, a.. ., ,.� v,,.S.'.,. . ..a.,�.. 4.r A . ., . ....,_e , . . ,.,... �Y��, .. ...ea.. .t t.»�, ;d�"'..',1�9 ,4....^de"". . P . . � City of Cupertino Population 58,302 62,100 66,300 71,200 6.5% 6.8% 7.4% Households 20,181 21,460 22,750 24,040 6.3% 6.0% 5.7% Jobs 26,090 29,960 31,220 33,110 14.8% 4.2% 6.1% Santa Clara County Population 1,781,642 1,977,900 2,188,500 2,423,500 11.0% 10.6% 10.7% 604,204 675,670 747,070 818,400 11.8% 10.6% 9.5% Jobs 926,270 1,091,270 1,147,020 1,229,520 17.8% 5.1% 7.2% Bay Area (a) Population 6,432,288 7,011,700 7,660,700 8,394,700 9.0% 9.3% 9.6% Households 2,350,186 2,560,480 2,776,640 2,992,990 8.9% 8.4% 7.8% Jobs 3,040,110 3,579,600 3,775,080 4,060,160 17.7% 5.5% 7.6% Notes: a)Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano,and Sonoma Counties. Source:Association of Bay Area Governments(ABAG), Housing Element Data Profiles, December 2013. H E-8 DRAFT CHAPTER 4 Housing Element largest housing category in Cupertino (21 percent), followed by single-family attached dwellings (12 percent). a,� .,, . Between 2000 and 2013, these two housing types , �,��.,,;� experienced an increase of 24 and 26 percent, respectively. : ._�� ��- - Market Conditions and Income Related to � �:= M.� ��.� .�� ' ' `-' �� Housin Costs � � g �� � :� Y,SS- �K �.,�.�' .�.i�"' `�2, -�it � � � �� .��1,° - The cost of housing is dependent on a variety of factors, �'��� including underlying land costs, market characteristics, rc ' { . The Bay Area technoloqy boom has and financing options. In the Bay Area, the technology ;,,�,��sed ho�,s��,g dP�„��d at a!i ie�e�s boom has increased the demand for new housing at all income levels, resulting in both lower-earning residents and well-paid area professionals competing for housing in an overcrowded and expensive market. High housing costs can price lower-income families out of the market, cause extreme cost burdens, or force households into overcrowded conditions. Cupertino has some of the highest housing costs in the region. Rental Market Characteristics and Trends A review of rental market conditions in Cupertino was conducted for this Housing Element by reviewing advertised apartment listings. The survey found that market-rate rents averaged: ■ $1,608 per month for studio units ■ $2,237 per month for one-bedroom units ■ $2,886 per month for two-bedroom units ■ $3,652 per month for three-bedroom units Rental prices in Cupertino ranged from $1,400 for a studio unit to $5,895 for a five-bedroom unit. As can be expected, smaller units are generally more affordable than larger units. The overall median rental price for all unit sizes surveyed was $2,830, and the average price was $2,919. DRAFT H E-9 2040 GENERAL PLAN City of Cupertino #�� Home Sale Trends � ` �i� While other areas of the State and nation experienced , �f ���'rr downturns in the housing market during the national �--- ;; t;; recession that began in 2008, Cupertino home values have 'HOUS1� � E �ti a�, ,;, , ,�,�t. = continued to grow. During the depth of the housing market � ���` '""� ' ; crash (between 2008 and 2010), the median home price in �� SA.L� _ � �- � Cupertino held steady at around $1,000,000. Since 2011, home prices in Cupertino have increased substantially. The Des���te rf,� „ar�o���� ��o�,o�,��� d��w�,r�,r�,, 2013 median home sales price of $1,200,000 in Cupertino Cupertino hvme values have cont�nued to ��se was nearly double that of the County median price ($645,000), and prices continued to rise in 2014. Housing Affordability According to the federal government, housing is considered "affordable" if it costs no more than 30 percent of a household's gross income. Often, affordable housing is discussed in the context of affordability to households with different income levels. Households are categorized as very low income, low income, moderate income, or above moderate income based on percentages of the area median income established annually by the California Department of Housing and Community Development (HCD). In 2014, the area median income for Santa Clara County was $105,500 for a family of four. Special Housing Needs Certain groups have more difficulty finding decent, affordable housing due to their special circumstances. Special circumstances may be related to one's income- earning potential, family characteristics, the presence of physical or mental disabilities, or age-related health issues. As a result, certain groups typically earn lower incomes and have higher rates of overpayment for housing, or they may live in overcrowded residences. Housing Element law specifically requires an analysis of the special housing needs H E-1 0 DRAFT CHAPTER 4 Housing Element of the elderly, the disabled, female-headed households, large families, farmworkers, and homeless persons and families. Table HE-3 summarizes demographics for these special needs groups in Cupertino. . - - . � - � - � - � . .� :: , ��� _ . � Senior-Headed Households 3,983 785 (19.7%) 3,198 (80.3°/a) 19.7% Households with a Senior 5,069 n/a n/a 25.1% Member Seniors Living Alone 1,612 516 (32.0%) 1,096 (68.0%) 8.0% Large Households 1,883 619 (32.9%) 1,264 (67.1%) 9.3% Single-Parent Households 883 n/a n/a 4.4% Female Single-Parent Households 667 n/a n/a 6.9% Persons with Disabilities �a� 3,445 n/a n/a 5.9% Agricultural Workers �b� 36 n/a n/a <1% Persons living in Poverty�b� 2,330 n/a n/a 4.0% Homeless ��� 112 n/a n/a <1% Notes: (a)2010 Census data not available for persons with disabilities. Estimate is from the 2008-2012 ACS. Estimate is for persons S years of age and older. (b)2010 Census data not available. Estimate is from the 2007-2011 ACS. (c)2010 Census data not available. Estimate is from 2013 Santa Clara County Homeless Point-In-Time Census and Survey Comprehensive Report. Of the 112 homeless persons counted in Cupertino in 2013, 92 persons were unsheltered and 20 were sheltered. Sources:Association of Bay Area Governments(ABAG), Housing Element Data Profiles, December 2013; U.S. Census,American Community Survey(ACS),2008-2012;2013 Santa Clara County Homeless Point-In-Time Census and Survey Comprehensive Report DRAFT H E-1 1 2040 GENERAL PLAN City of Cupertino ��,,� ,�'"�� �T�.� ` ''-` Seniors ��r ;�'�. ,���-��u�� � � -� ..�� Many senior residents face a unique set of housing needs, �,",° ,�, �'"�`: . � �-�' q/ largely due to physical limitations, fixed incomes, and ..�;' � ...�.� �. m�,���kNt.._.,±f d • }...' •.'.fs9 ` health care costs. Affordable housing cost, unit sizes and �. ����f^T - ;� ,, ����� '``��`'�' accessibility to transit, family, health care, and other services ; �. � '�?"� ° are critical housing concerns for seniors. ���� � �`._. ' � , � , _ � �:� �; ;�� ,._a...�,��,.b� � �°�^"�""' In 2010, 20 percent of Cupertino householders were 65 _ , ,;,`: years old or older, slightly higher than the proportion of more likely to be lower �ncome than elderiy senior households in Santa Clara County (18.5 percent). owner households A large majority of these senior households owned their homes; 86 percent of elderly households were homeowners, compared to only 58 percent of householders under 64 years old. Cupertino's elderly renter households are more likely to be lower income than elderly owner households. Approximately 62 percent of elderly renter households earned less than 80 percent of the area median income compared to 42 percent of senior homeowners. Elderly households also tend to pay a larger portion of their income on housing costs than do other households. Large Households Large households are defined as those with five or more members. Large households are identified as a special needs group because of (imited opportunities for adequately sized and affordable housing. Cupertino has a smaller proportion of large households than Santa Clara County as a whole (9.3 percent in Cupertino compared to 15 percent in Santa Clara County). In the City, large households are more likely to be homeowners (67 percent) than renters (33 percent). Approximately 64 percent of the housing units in Cupertino have three or more bedrooms and can accommodate large households. H E-1 2 �RAFT CHAPTER 4 Housing Element Single-Parent Households �^-,.���� .,.� ':. ■ ,�`� a "�.—��w���: 4�`. -t%�-� Single-parent households often require special �' ��� � consideration and assistance because of their greater °"� � ,� � � k �. , � n e e d f o r a f f o r d a b l e h o u s i ng a n d a c c e s s i b l e d ay c a r e, � w.��:���`� _ �� �� ' ... .� � � � health care, and other supportive services. Female-headed „ :�•� �. single-parent households with children, in particular, tend �.��'-� to have a higher need for affordable housing than other � � �..� A ' �� family households in general. In addition, these households �,�� Lulu ; ���j `�_.�_�� . ;� �n vr are more likely to need childcare since the mother is often - Cupertino's 3.3 percent female-headed the sole source of income in addition to being the sole single-parent households were living in caregiver for the children in the household. In 2010, 667 Po�e�ty female-headed single-parent households with children under 18 years of age lived in Cupertino, representing 3.3 percent of all households in the City. A significant proportion of these households were living in poverty (21 percent). Persons with Disabilities A disability is a physical or mental impairment that limits one or more major life activities. Persons with disabilities generally have lower incomes and often face barriers to finding employment or adequate housing due to physical or structural obstacles. This segment of the population often needs affordable housing that is located near public transportation, services, and shopping. Persons with disabilities may require units equipped with wheelchair accessibility or other special features that accommodate physical or sensory limitations. Depending on the severity of the disability, people may live independently with some assistance in their own homes, or may require assisted living and supportive services in special care facilities. Approximately six percent of Cupertino residents and eight percent of Santa Clara County residents had one or more disabilities in 2010. DRAFT H E-1 3 2040 GENERAL PLAN City of Cupertino -�--:� �°°°` Residents Living Below the Poverty Leve) . � a . � �� a���:� �. , � .. w::��'.�':�•� _.,,� Families with incomes below the poverty level, specifically � ,. µ _ , .i °.� ,, . ° ;. those with extremely low and very low incomes, are at � � � #1�, �°:. . ';��� 9 r x � � the greatest risk of becoming homeless and often require i�� : '°�� " { . assistance in meeting their rent and mortgage obligations � � � in order to prevent homelessness. Census data suggest �' ' � ,' that four percent of all Cupertino residents were living � below the poverty level in 2010. Specifically, about three ''' percent of family households and two percent of families tor thousands of homeless people and families seeking assistance with children were living below the poverty level. These households may require specific housing solutions such as deeper income targeting for subsidies, housing with supportive services, single-room occupancy units, or rent subsidies and vouchers. Homeless Demand for emergency and transitional shelter in Cupertino is difficult to determine given the episodic nature of homelessness. Generally, episodes of homelessness among families or individuals can occur as a single event or periodically. The county-wide 2013 Santa Clara County Homeless Census & Survey reported a point-in-time count of 7,631 homeless people on the streets and in emergency shelters, transitional housing, and domestic violence shelters throughout the County. This estimate includes 112 homeless individuals in Cupertino. The count, however, should be considered conservative because many unsheltered homeless individuals may not be visible at street locations, even with the most thorough methodology. H E-1 4 DRAFT CHAPTER 4 Housing Element a � x .e,�r.� .. +� REGIONAL HOUSING NEEDS ALLOCATION � �,,� „ .��.���»k ,�,: ° �� , ��� •� � "�� ' � x � �'�,�. � �, ,� ,,�� �� � Pursuant to California Government Code Section 65584, ��,;`t �,`��, �,�' � � �"Y;, '° ��� � ���`� , � � f,� +. the State, regional councils of government (in this case, ''�, �:, .��";�T�w'�`�'�µ� �,' . 1r.a `y4�•�1 .,:.y �t3 � ABAG), and local governments must collectively determine '�::a � � ,' �'"`';"`,� 7 0�"""�'T'�� ,,,;�; each locality's share of regional housing need (RHNA). In t � � �"'�e �� •'10"'�:, ' - � .:� conjunction with the State mandated housing element �;�,� = °� �; � � � �_ .� �� , " � � - update cycle that requires Bay Area jurisdictions to update °°"� ��,,��,. ���,�;� ,� .,* .�- � ; ' m�. ��.���4 ���.�.�..,-' t heir e lemen ts by January 3 1, 2 0 1 5, A B A G has de termine d . � • housing unit production needs for each jurisdiction within specific housmg solutions due to a greater the Bay Area. These allocations set housing production r�sk for issues such as homelessness goals for the planning period that runs from January 1, 2014 through October 31, 2022 (Table HE-4). � � � s ' � • � � � , tI „�„s " � "' �:m— • • Extremely Low/Very Low (0-50% of AMI) 356 33.5% Low (51-80% of AM I) 207 19.5% Moderate (81-120% of AMI) 231 21.7% Above Moderate (over 120%AMI) 270 25.4% Total Units 1,064 100.0% Source:ABAG Regional Housing Needs Assessment,2014. DRAFT H E-1 5 2040 GENERAL PLAN City of Cupertino , ��� Progress toward the Regional Housing Needs r�!Y,�" �� Allocation � ��� � The City of Cupertino may count housing units constructed, � '.- "� I'�� ` approved, or proposed since January 1, 2014 toward ��r., r . ' � ` '`y` satisfying its RHNA goals for this planning period. Between , � � ��o� - ��rt�`� � ! � ' ��'n January 1 and May 31, 2014, building permits for 14 �� � ��, �' `` � , � single-family housing units and three second units were � ` � � � � ''�`� approved in Cupertino. In addition, six single-family homes T!,t fisso�ia�!o � v� cay =irE�<� Govemments (ABAG)helps determine each areas share of and seven apartments received Planning approvals. Also the regional housing need included in the RHNA credits are 32 second units projected to be developed within the planning period. This projection is based on historical approvals of second units during the past Housing Element planning period. With these credits, the City has a remaining RHNA of 1,002 units: 356 extremely low/very low-income units, 207 low-income units, 196 moderate-income units, and 243 above moderate- income units. H+OUSIN+� RESOURCES Overview of Available Sites for Housing The purpose of the adequate sites analysis is to demonstrate that a sufficient supply of land exists in the City to accommodate the fair share of the region's housing needs during the RHNA projections period (January 1, 2014 — October 31, 2022). The Government Code requires that the Housing Element include an "inventory of land suitable for residential development, including vacant sites and sites having the potential for redevelopment" (Section 65583[a] [3]). It further requires that the element analyze zoning and infrastructure on these sites to ensure housing development is feasible during the planning period. Cupertino faces regiona) growth demands while undergoing a transformation from a traditional suburban residential community to one that increasingly reflects more H E-1 6 DRAFT CHAPTER 4 Housing Element urban characteristics: public gathering spaces, increased shopping and entertainment choices conveniently located „ .;, near housing, and jobs within an urban core. Cupertino historically has more jobs than housing. When this . .,,, imbalance is multiplied across adjacent cities, regional �� consequences include high housing costs, sprawl into , ,� ': �� � � .�N�' .�+ �=..���� outlying areas, congestion of the transportation system, 4 `� � *� .�� ' and increased air pollution. "��� � Y „� � � � . The General Plan's development allocation policies then housing are intended to improve the jobs/housing balance by increasing potential housing units and tempering non- residential growth. The General Plan controls the amount of commercial, office, hotel, and residential uses that can be built through development allocations in terms of square feet (commercial and office), rooms (hotel), and units (residential). Through a comprehensive General Plan Amendment adopted in fall 2014, the City conducted extensive community engagement and resource analyses to identify strategies to replenish, re-allocate, and increase office, commercial, hotel, and residential allocations citywide to plan for future development activity, all the while balancing regional growth pressures with strongly held community desire to maintain Cupertino's character and quality of life. Figure HE-1 indicates the available residential development opportunity sites to meet and exceed the identified housing need. The opportunity sites can accommodate infill development of up to 1,386 residential units on properties zoned for densities of 20 dwelling units to the acre or more. The potential sites inventory is organized by geographic area and in particular, by mixed use corridors. As shown in Table HE-5, a large proportion of the near-term development potential lies within the Heart of the City Special Area. An additional potential site is located in the North Vallco Park Special Area. DRA�T H E-1 7 2040 GENERAL PLAN City of Cupertino Figure HE-1 Housing Element Sites to Meet the RH NA North Vallco Park: �"��'� 344 Units � Sunnyvale ---a ; ..� {� ( �y Los Altos � _—� � `,„„ ... . � `� ��_�, r� p.,,.m..... �._.._,_I i.._�.�__v � ; � a.. � t _....._.g 5 e 3 : , � \ \ 1 Z� � � � 1 i \.� � '. � \s � 1t �.� "_ . , � ` 344 ; r r u , — ��s ;� �`� � � � F� � �� � � � , � ; } �i �\ , � �` s '� ) SiteS . fi00tunits # )� � �93units __ . . ( < . � � `' � � _ . �\ ,,' _/" , �' Santa Gara �i / \r � -,;--�. � , � .'' �� � �� � ��� �� / 1 Ste1 ��. j �� /� `� 235units.� . � .. �7 Y i „.,.� i�� \ Slteb SIfe4 � ��� �s. � io3�r,us ii�ous � � /. �� � � � � - � � �--- _ -----� , � , � , i � . I , ��� �-----� ', � `,� __ ; � � �� °.� _.. � � � �� � � «. �_. \ 4� ..,���y_�. ��----_�t _ i---- ` ( � � � �� \� � � Heart of the � � j � � � �� �� San Jose Clty: . # � `�,/ � \� t . � �� 1,042 Units ; � �� ,. � � �. , � � � --_ - a_�_ --- , „ r -_.__. _..__. € � �� � ' -> � � ) i ` i i � � � � , ,�--_' -� � �..�: .f ._... � _ ! , �� 1 � � .f ..__ _ %�,,..___ -''�-__--_-� ,J `� % �-� '' ��...._�' r Legend J ��y Housing Elements City Boundary Sites °—� ° � Urban Service Area Boundary VTA Priority Sphere of Influence Development Area Boundary Agreement Line (PDA) , sne ; Site Number:Realistic Unincor orated Areas °""' P Capacity.No�e:Rea��s��� capa<ily is BS%of maximum capacity allowed unde�Alternative C 0 0.5 1 Mile TSpecial Areas 0 1000 2000 3000 Feet � Q Heart of the City 0 500 1000 Meters � North Vallco Park H E-1 8 DRAFT CHAPTER 4 Housing Element � : � � � � � � � � � � � � , a _, .. , . .. , � � ,; , , �kr. ti,,,.,. ���,,, . �i ip� ,�.� �. .,, ,.,,, > ,.��o, ,,:� ,.� ,� � . �a� ,i+_ i �i, � � Site 1 (The Oaks C/O/R Heart of 45 ft; or Shopping Center) P(CG, Res, OP) the City 35 60 ft with retail 235 C/O/R 45 ft; or Site 2 (Vallco Shopping Heart of 60 ft with retail; or 75-90 District) P(Regional Shopping, the City 35 ft in certain locations* 600 max OP, Res) with community benefits High Density North 75 ft; or 60 ft in certain Site 3 (The Hamptons) P(Res) Vallco Park 65 locations*; 344 Site 4 (United Furniture/ C/O/R Heart of 25 45 ft 103 East of East Estates Dr) P(CG, Res) the City Site 5 (Glenbrook Medium Density Heart of 20 45 ft 93 Apartments) R3(10-20) the City Site 6 (Barry Swenson) C/O/R Heart of 25 45 ft 11 P(CG, Res) the City Total 1,386 Notes:Site 2(Vallco)height allowance to 75 feet is applicable only with community benefits and only for a 200 foot depth along the west Wolfe Rd.property line and set back 200 feet from the Stevens Creek Blvd.property line.Height allowance to 90 feet only with community benefits and only east of Wolfe.Site 3(Hamptons)height limit of 60 feet is applicable for buildings located within 50 feet of property lines abutting Wolfe Rd, Pruneridge Ave.&Apple Campus 2 site. For more detail on height limits,see Land Use and Community Design Element, Figure LU-1. HOUSING PLAN This section presents the quantified objectives for new housing unit construction, conservation, and rehabilitation during the 2014-2022 planning period, as well as the policies and strategies to meet these objectives and address local housing needs. Policies and strategies are grouped into the following goals: ■ Goal HE-1: An Adequate Supply of Residential Units for all Economic Segments DRAFT H E-1 9 2040 GENERAL PLAN City of Cupertino ■ Goal HE-2: Housing that is Affordable for a Diversity of Cupertino Households ■ Goal HE-3: Enhanced Residential Neighborhoods ■ Goal HE-4: Energy and Water Conservation ■ Goal HE-5: Services for Extremely Low-Income Households and Special Needs Neighborhoods ■ Goal HE-6: Equal Access to Housing Opportunities ■ Goal HE-7: Coordination with Regional Organizations and Local School Districts This section also identifies the responsible party and timeline for each implementation strategy. Quantified Objectives Table HE-6 outlines the proposed housing production, rehabilitation, and conservation objectives for the eight- year Housing Element planning period. � : . • � II : � • : , �� . imvm�omrmr�r �b� �� °����m.������ Extremely Low 178 10 8 Very Low 178 10 Low 207 20 Moderate 231 Above Moderate 270 Total 1,064 40 8 Source:City of Cupertino,2014 H E-2 0 DRAFT CHAPTER 4 Housing Element . s 1 ♦ ♦ . � s , • � , � � Policy HE-1.1: Provision of Adequate Capacity for New Construction Need Designate sufficient land at appropriate densities to accommodate Cupertino's Regional Housing Needs Allocation of 1,064 units for the 2014-2022 planning period. Policy HE-1 .2: Housing Densities Provide a full range of densities for ownership and rental housing. Policy HE-1 .3: Mixed Use Development Encourage mixed-use development near transportation facilities and employment centers. Implementing Strategies Strategy 1: Land Use Policy and Zoning Provisions. To accommodate the Regional Housing Needs Allocation (RHNA), the City will continue to: ■ Provide adequate capacity through the Land Use Element and Zoning Ordinance to accommodate the RHNA of 1,064 units while maintaining a balanced land use plan that offers opportunities for employment growth, commercial/retail activities, services, and amenities. ■ Monitor development standards to ensure they are adequate and appropriate to facilitate a range of housing in the community QRAFT H E-2 1 2040 GENERAL PLAN City of Cupertino ■ Monitor the sites inventory and make it available on the City website. Monitor development activity on the Housing Opportunity Sites to ensure that the City maintains sufficient land to accommodate the RHNA during the planning period. In the event a housing site listed in the Housing Element sites inventory is redeveloped with a non-residential use or at a lower density than shown in the Housing Element sites inventory, ensure that the City has adequate capacity to meet the RHNA by making the findings required by Government Code Section 65863 and identifying alternative site(s) within the City if needed. Cupertino Department of Responsible Agencies: Community Development/ Planning Division Time Frame: Ongoing 1 4 Funding Sources: None required a � r 1,064 units (178 extremely low-, 178 very low-, 207 low-, Quantified Objectives: 5 231 moderate- and 270 above moderate-income units) Strategy 2: Second Dwelling Units. The City will continue to implement the Second Dwelling Unit Ordinance and encourage the production of second units. Cupertino Department of Responsible Agencies: Community Development/ Planning Division Time Frame: Ongoing Funding Sources: None required Four second units annually for a ; Quantified Objectives: total of 32 units over eight years H E-2 2 DRAFT CHAPTER 4 Housing Element Strategy 3: Lot Consolidation. To facilitate residential and ` �� ''° +�� �,a�-����-�_"��.. mixed use developments, the City will continue to: , �-� '�`��� ,;�;� : �� ��- �' ����.t,ti< � �� ..,�... ■ Encourage lot consolidation when contiguous smaller, °�" ��*'� "��,M� =r:� , � � ` � �� . � underutilized parcels are to be redeveloped -� . ��� �"� �''�, �, ;-� '°` � �°�" �= K �,� ��1��, ,,�;' �� „ ■ Encourage master plans for such sites with coordinated ��'' � '' ;`i access and circulation �, � � '-� � � ��� ��'��'� �' �_ � .� ��.�� '� � ,� . . ±� y � ..i's 1`' ... . , �;a►•a�• ■ Provide technical assistance to property owners of adjacent parcels to facilitate coordinated redevelopment ��"����rt��,�� w�ii ��co�„�ye rne d��e�������E���r of mixed use centers where appropriate ■ Encourage intra- and inter-agency cooperation in working with applicants at no cost prior to application submittal for assistance with preliminary plan review. Cupertino Department of Responsible Agencies: Community Development/ Planning Division Time Frame: Ongoing Funding Sources: None required Quantified Objectives: N/A Strategy 4: Flexible Development Standards. The City recognizes the need to encourage a range of housing options in the community. The City will continue to: ■ Offer flexible residential development standards in planned residential zoning districts, such as smaller lot sizes, lot widths, floor area ratios and setbacks, particularly for higher density and attached housing developments ■ Consider granting reductions in off-street parking on a case-by-case basis for senior housing. DRAFT H E-2 3 2040 GENERAL PLAN City of Cupertino � "" '�, '� '"n � ''�=. a�- � �• � , r j`��`,3�"� ' =�,��*� Cupertino Department of ; ��`��� ��� '`�r` b Responsible Agencies: Community Development/ �,, � . .. , f� �,_.. � ♦i. � YRN+� � a��A' i�i��'���1�'.� ,�`� Planning Division � � � � — .= _ _ ' * � � Time Frame: Ongoing ��� . 1A +�,' ��,��#F� �' �" " `"�°"' Funding Sources: None required �_ �; := �. � Y� : � '�� ..,�,.� ',.�, Quantified Objectives: N/A � ��� ' _ �.� _....._.. ..__. ..,.. ._.._ __ _ _ _.. � _ �� -� � - t �:,.� _ �. . � -�e�� ;�s`` . ��, �,'.` `a it�s "G" �„ou,�, ,,��„�,;y� ;;,��, ,,r Strategy 5: To reduce constraints to housing development, appropriate densities to accommodate the and in order to ensure that the designated sites can obtain Regional Housing Needs Allocation (RHNA) the realistic capacity shown in the Housing Element, the City will review revisions to the Heart of the City Specific Plan residential density calculation requirement, to eliminate the requirement to net the non-residential portion of the development from the lot area. Cupertino Department of Responsible Agencies: Community Development/ i Planning Division � Time Frame: 2016 ; Funding Sources: None required Quantified Objectives: N/A ' ! � � • . � � � *. ` . . O ' r • M Policy HE-4: Housing Mitigation Ensure that all new developments—including market-rate residential developments—help mitigate project-related impact on affordable housing needs. H E-2 4 DRAF7 CHAPTER 4 Housing Element Policy HE-5: Range of Housing Types '� � � Encourage the development of diverse housing stock `�' - `� y �p�` � , ;s .��F � �` � �.�� , �� .� that provides a range of housing types (including smaller, � ; � ��°� moderate cost housing) and affordability levels. Emphasize ��� '�"���� � � » � �: � � �, , the provision of housing for lower- and moderate-income � �°' - .� ""�' ''�. ��;r °f � ,��: � � �,�; � ;., households including wage earners who provide essential �' �` � � : , . � � �'� public services (e.g., school district employees, municipal -�'"` ' °-or- .-r and public safety employees, etc.) �;,���=�. '� ,�� Policy HE-6: Development of Affordable Housing � �,���� �,,,: r,,, � ,� �:.- �w��, and Housing for Persons with Special Needs �.,,,,� � : �.l� Maintain and/or adopt appropriate land use regulations � --.._,�,,,;� and other development tools to encourage the �, ,- � I� j �- � m .. �� ` 'a.� �; �� development of affordable housing. Make every reasonable .r�a*%-='�� . effort to disperse units throughout the community but not �q� � x�� : I ■ , . ��.: "�" at the expense of undermining the fundamental goal of � '*£� ` �_ � �� `�� providing affordable units. ' � Implementing Strategies �� � �'�.. ' ' �i �\�,� �`�� � Strategy 6: Office and Industrial Housing Mitigation � , y�` .,.�.-�* r , Program. The City will continue to implement the ��� ,�.� � � � ,� Office and Industrial Housing Mitigation Strategy. This ��� ���� i� � . �� `�„�� , r , , ���w �i�� strategy requires that developers of office, commercial, °'z� t{ and industrial space pay a mitigation fee, which will -� then be used to support affordable housing in the City _ _ �"��� - of Cupertino. These mitigation fees are collected and ,� ���� _��-� �>� �<<�ii5� ���; ���������� ����--�_„�a ��� deposited in the City's Below Market-Rate Affordable `" ``'' '`�`� ` ``'`�� ` �'��,�'` �����` Housing Fund (BMR AHF). Cupertino Department of Responsible Agencies: Community Development/ . Planning Division Time Frame: Ongoing Funding Sources: BMR AHF Quantified Objectives: N/A DRAFT H E-2 5 2040 GENERAL PLAN City of Cupertino Strategy 7: Residential Housing Mitigation Program. The City will continue to implement the Residential '�,'�t Housing Mitigation Program to mitigate the need for � ����.. ��, „°���;�!�'�'�`� �_ �,�. �,�: �� `:_ affordable housing created by new market-rate residential y. ..�� .%..Ft. 3„ �nw�i - `�r �`��� � �`��� development. This program applies to all new residential �r: , , ,. ; : '` „ ` development of one unit or greater. Mitigation includes �. . . .. � � � either the payment of the "Housing Mitigation" fee or ;�.,�;,;�,, ,�.,;, ���,.» ��...r.... ���' . the provision of a 6elow Market-Rate (6MR) unit or units. Projects of seven or more for-sale units must provide on-site encouraged for developrnent BMR units. Projects of six units or fewer for-sale units can either build one BMR unit or pay the Housing Mitigation fee. Developers of market-rate rental units, where the units cannot be sold individually, must pay the Housing Mitigation fee to the BMR AHF. The BMR program specifies the following: a. Priority. To the extent permitted by law, priority for occupancy is given to Cupertino residents, Cupertino full- time employees and Cupertino public service employees as defined in Cupertino's BMR Policy and Procedures Manual. b. For-Sale Residential Developments. Require 15% for-sale BMR units in all residential developments where the units can be sold individually (including single-family homes, common interest developments, and condominium conversions or allow rental BMR units as allowed in (c)(2) below). c. Rental Residential Developments: To the extent permitted by law, require 15% rental very low and low- income BMR units in all rental residential developments. If the City is not permitted by law to require BMR units in rental residential developments: d. Rental Alternative. Allow rental BMR units in for-sale residential developments, and allow developers of market-rate rental developments to provide on-site rental H E-2 6 DRAFT CHAPTER 4 Housing Element BMR units, if the developer: 1) enters into an agreement � - ._ r. limiting rents in exchange for a financial contribution or a _._ __— - -°�' ----=r-- type of assistance specified in density bonus law (which includes a variety of regulatory reliefl; and 2) provides �::������!������ very low-income and low-income BMR rental units. -- ' � -- e. Affordable Prices and Rents. Establish guidelines for #���,,,�,� -�; � � �r , _��� � affordable sales prices and affordable rents for new . 1 � a� � ,�. • affordable housing and update the guidelines each year ��- - � }�;-.` �. , _ as new income guidelines are received; �� � ` ' " ' `'`,' ," �`'' �,���" ` '°�'"� spec�al needs is a pnority tor Cupert+no f. Development of BMR Units Off Site. Allow developers to meet all or a portion of their BMR or Housing Mitigation fee requirement by making land available for the City or a nonprofit housing developer to construct affordable housing, or allow developers to construct the required BMR units off site, in partnership with a nonprofit. The criteria for land donation or off-site BMR units (or combination of the two options) will be identified in the Residential Housing Mitigation Manual. g. BMR Term. Require BMR units to remain affordable for a minimum of 99 years; and enforce the City's first right of refusal for BMR units and other means to ensure that BMR units remain affordable. Cupertino Department of Community Development/ Responsible Agencies: Planning Division and Housing Division Time Frame: Ongoing Funding Sources: BMR AHF Quantified Objectives: 20 BMR units over eight years Strategy 8: Below Market-Rate (BMR) Affordable Housing Fund (AHF). The City's BMR AHF will continue DRAFT H E-2 7 2040 GENERAL PLAN City of Cupertino to support affordable housing projects, strategies and � services, including but not limited to: w ... �"�,�„d?�'"."� Pr ,. :. .. .��. o. �ggA ' � .. ~ M . "' " ■ BMR Program Administration `�• �� '#r � � ri"� �� � ' ����' Substantial rehabilitation � q�,� � „�., , . i� t� ..;..��+�., �� "� �� � ��.�.�_ �� • �and acquisition �� � �.'� .�;� ., . �� IDn � Acquisition of buildings for permanent affordability, with Tiie Housing Plan should encourage a or without rehabilitation diverse stock of housinq types ■ New construction ■ Preserving "at-risk" BMR units ■ Rental operating subsidies ■ Down payment assistance ■ Land write-downs ■ Direct gap financing ■ Fair housing The City will target a portion of the BMR AHF to benefit extremely low-income households and persons with special needs (such as the elderly, victims of domestic violence, and the disabled, including persons with developmental disabilities), to the extent that these target populations are found to be consistent with the needs identified in the nexus study the City prepares to identify the connection, or "nexus" between new developments and the need for affordable housing. To ensure the mitigation fees continue to be adequate to mitigate the impacts of new development on affordable housing needs, the City will update its Nexus Study for the Housing Mitigation Plan by the end of 2016. HE-28 DRAFt CHAPTER 4 Housing Element Cupertino Department of Community Development/ � Responsible Agencies: - `„ Planning Division and Housing - Division � � �� : Time Frame: Ongoing; update Nexus Study by ! ` `� `�' the end of 2016 � ;; � ;: � Fundin Sources: BMR AHF , � � � g � - � � Quantified Objectives: N/A _ __ _ Cupertino`s Belo4v fviark�� ,-��te rltrordable Housing Fund will continue to support Strategy 9: Housing Resources. Cupertino residents and a{{ordable housing projects, programs, and developers interested in providing affordable housing in services the City have access to a variety of resources administered by other agencies. The City will continue to provide information on housing resources and services offered by the County and other outside agencies. These include, but are not limited to: ■ Mortgage Credit Certificate (MCC) — Santa Clara County Housing and Community Development Department ■ First-Time Homebuyer Assistance and Developer Loans for Multi-Family Development - Housing Trust Silicon Valley (HTS� ■ Housing Choice Vouchers (Section 8) - Housing Authority of Santa Clara County (HASCC) ■ Affordable housing development - Santa Clara County HOME Consortium The City will also continue to explore and pursue various affordable housing resources available at the local, regional, state, and federal levels that could be used to address housing needs in the community. DRAFT HE-29 2040 GENERAL PLAN City of Cupertino �' ,.�., �,, n��,� � Cupertino Department of "�'"'� — -. ` Responsible Agencies: Community Development/ ' - �� �� Housing Division _ _ -- ` ��`�„''."m � � �, Time Frame: Ongoing �. ��`' ���'!� : � �� Funding Sources: None required �� � �° �. ' f ' � } " ��' -� Quantified Objectives: N/A . ,. � . � t,. . -- � � � , , __._ � � e ��, �� � ,<< i,�� � ,, _ _ „ , ,,, Strategy 10: Surplus Properties for Housing. The City will Housing Mitigation Plan by the end of 2016 explore opportunities on surplus properties as follows: ■ Work with local public agencies, school districts and churches, to identify surplus properties or underutilized properties that have the potential for residential development. ■ Encourage long-term land leases of properties from churches, school districts, and corporations for construction of affordable units. ■ Evaluate the feasibility of developing special housing for teachers or other employee groups on the surplus properties. ■ Research other jurisdictions' housing programs for teachers for their potential applicability in Cupertino. Responsible Agencies: Cupertino Department of Community Development/ Planning Division Time Frame: Ongoing; evaluate housing pro- grams for teachers in 2015 Funding Sources: BMR AHF Quantified Objectives: N/A H E-30 DRAFT CHAPTER 4 Housing Element Strategy 11: Incentives for Affordable Housing �,� Development. The City will continue to offer a range �"'��° �� of incentives to facilitate the development of affordable � �`�" �;a�, - �� �1�,� �,���� housing. These include: �t:�°- ��� � ���1�.:�= � 4 5 �� 4p + , .R � <T ! :•�• f.1� � .. ■ Financial assistance through the City's Below Market- ��'�$. "{��� 4v,tr .:I:����-,..�.» Rate Affordable Housing Fund (BMR AHF) and CDBG ��,� `�;��.��� funds __��.- �.,� , _ � � °'�����:�; � . ■ Partner with CDBG and/or support the funding The City's Below Market Rate Residentiai application of qualified affordable housing developers Mitigation Program requires all new for regional, state, and federal affordable housing funds, residential developers to either provide below market rate units or pay a mitigation including HOME funds, Low Income Housing Tax Credits fee (LIHTC), and mortgage revenue bonds ■ Density bonus incentives (see Strategy 12) ■ Flexible development standards ■ Technical assistance ■ Waiver of park dedication fees and construction tax ■ Parking ordinance waivers ■ Expedited permit processing The City is proposing to join the Santa Clara County HOME Consortium so that HOME funds for eligible affordable housing projects and strategies within the City of Cupertino may be eligible to receive HOME funding. Responsible Agencies: Cupertino Department of Community Development/ Planning Division and Housing Division Time Frame: Ongoing incentives; decision to join HOME Consortium in 2014 Funding Sources: BMR AHF; CDBG; HOME; General Fund Quantified Objectives: N/A DRAFT H E-3 1 2040 GENERAL PLAN City of Cupertino �'"' rnf � Strategy 12: Density Bonus Ordinance. The City will �"` � �� , update the Density Bonus Ordinance concurrent with the ri;;,� -- ��� d�; --�-�� Housing Element update to respond to changes in State � � �.� `�!^� law. As of 2014, the Density Bonus Ordinance (Chapter � �`--�� .�,"� �,, �,:a4�t �' �-,� a �,� `�--= 20.305 of the Municipal Code) had not been updated to � �� '� �� � ��'�� �f �� ,. 9�+� � reflect changes in State law included in SB 1818 and other �; � � l�: �f � ' � � density bonus bills. Cities and counties are now required `" � " '� f �`��.. to grant a density bonus of up to 35 percent for housing `• � ,,..r y'�„�~`. ,��- _�,,,,:�i�b,e n�: developments which include one of the following: continue to be incentivized by the City ■ At least 5 percent of the housing units are restricted to very low income residents ■ At least 10 percent of the housing units are restricted to lower income residents ■ At least 10 percent of the housing units in a for-sale common interest development are restricted to moderate income residents. ■ The project donates at least one acre of land to the city or county large enough for 40 very low income units; the land has the appropriate general plan designation, zoning, permits, approvals, and access to public facilities needed for such housing; funding has been identified; and other requirements are met. A density bonus of up to 20 percent must be granted to projects that contain one of the following: ■ The project is a senior citizen housing development (no affordable units required) ■ The project is a mobile home park age restricted to senior citizens (no affordable units required) For projects that contain on-site affordable housing, developers may request one to three regulatory concessions, which must result in identifiable cost HE-32 DRAFT CHAPTER 4 Housing Element reductions and be needed to make the housing affordable. Subsequent to adoption of an updated ordinance, the City will continue to encourage the development of affordable �a� ' housing through the density bonus ordinance and will update the regulations as necessary to respond to future - changes in State law. '�' � � Cupertino Department of ` � ,t��k ��r�� �„' � � Community Development/ � '� "�"' Responsible Agencies ; Planning Division and Housing v `� `= ✓ ' " ''`` ' updated to respond to changes in the la��v Division Concurrent with 2014-2022 Time Frame Housing Element update; Ongoing Funding Sources None Required Quantified Objectives N/A __ _ __ . __ ___ Strategy 13: Extremely Low-Income Housing and Housing for Persons with Special Needs. The City will continue to encourage the development of adequate housing to meet the needs of extremely low-income households and persons with special needs (such as the elderly, victims of domestic violence, and the disabled, including persons with developmental disabilities). Specifically, the City will consider the following incentives: ■ Provide financing assistance using the Below Market-Rate Affordable Housing Fund (BMR AHF) and Community Development Block Grant funds (CDBG). ■ Allow residential developments to exceed planned density maximums if they provide special needs housing and the increase in density will not overburden neighborhood streets or hurt neighborhood character. ■ Grant reductions in off-street parking on a case-by-case basis. DRAFT H E-3 3 2040 GENERAL PLAN City of Cupertino �� �°°�� ■ Partner with and/or support the funding application of m � � � � qualified affordable housing developers for regional, > � r - � `°' state, and federal affordable housing funds, including , ,�� .��.. � >� � �" ��`,,-�t�� '" r�;�,,��� HOME funds, Low Income Housing Tax Credits (LIHTC), `"° 4�`� �� and mort a e revenue bond. �V. �,, : � J 9 , � `� �,��,� , ��1 Cupertino Department of �. Responsible Agencies Community Development/ � , �� �� Housing Division development of low income housing for Time Frame Ongoing � communities with special needs, such as � the elderly Funding Sources BMR AHF; CDBG; HOME ; # Quantified Objectives N/A Strategy 14: Employee Housing. The City permits farmworker housing in the Agricultural (A) and Agricultural Residential (A-1) Districts. Farmworker housing is allowed for workers and their families whose primary employment is incidental and necessary to agricultural operations conducted on the same parcel of land on which the residences are located. Pursuant to the State Employee Housing Act, any employee housing consisting of no more than 36 beds in a group quarters or 12 units or spaces designed for use by a single family or household shall be deemed an agricultural land use. No conditional use permit, zoning variance, or other zoning clearance shall be required of this employee housing that is not required of any other agricultural activity in the same zone. The permitted occupancy in employee housing in a zone allowing agricultural uses shali include agricultural employees who do not work on the property where the employee housing is located. The Employee Housing Act also specifies that housing for six or fewer employees be treated as a residential use. The City will amend the Zoning Ordinance to be consistent with the State Employee H E-3 4 aRAFT CHAPTER 4 Housing Element Housing Act. The City will continue to comply with the State Employee Housing Act where it would apply. _ ;�'_`�; .�..,. ti"�. > .. ��' "��.� �' � Cupertino Department of . .,� ,�� �}�;�,�^��`.��� F � aC�':�rsy ,� 'd l Community Development/ *�;� :; � '`� 'Y 4 ' r+��'� . Responsible Agencies ��; 5 � �•s '� '° . L„ Planning Division and •� � ��� ���''� �. �`'�L':_ ._.4. Housing Division �: ' ' , �: `�: 4 _.. Concurrent with 2014-2022 ` - ..,, _ -,�. Time Frame Housin Element U date; "' � g p �; L��pertino permits � Ongoing housing m agricultural districts Funding Sources None Required Quantified Objectives N/A �. _ . _ .. _ _ _.� � � a � r � r . . . , . . . .:� Policy HE-7: Housing Rehabilitation Pursue and/or provide funding for the acquisition/ rehabilitation of housing that is affordable to very low-, low-, and moderate-income households. Actively support and assist non-profit and for-profit developers in producing affordable units. Policy HE-8: Maintenance and Repair Assist lower-income homeowners and rental property owners in maintaining and repairing their housing units. Policy HE-9: Conservation of Housing Stock The City's existing multi-family units provide opportunities for households of varied income levels. Preserve existing multi-family housing stock by preventing the net loss of DRAFT H E-3 5 2040 GENERAL PLAN City of Cupertino multi-family housing units in new development and the • existing inventory of affordable housing units that are at risk ��� �,.....__.-.., '� �"����."�,�.��_� of converting to market-rate housing. +; ,�,,,e.��e „� ,� $����""""�,""" ���'""'��� ��,i �'�'�'� "'" Implementing Strategies r ,.�„� �� -����' � ._ ^nra`.:.::"""."'�, �: � �` .•- Strategy 15: Residential Rehabilitation. The City will � ., � �_�.��3 � �r.�,. continue to: �.� ���,`� r n���� �I�� � ;; ■ Utilize its Below Market-Rate Affordable Housing Fund rehabilitar�on ot ��ry �ow, �ow, a�,a n,oae�ate (BMR AHF) and Community Development Block Grant �n�or„P hous��,� (CDBG) funds to support residential rehabilitation efforts in the community. These include: ■ Acquisition/rehabilitation of rental housing ■ Rehabilitation of owner-occupied housing ■ Provide assistance for home safety repairs and mobility/ accessibility improvements to income-qualified owner- occupants using CDBG funds. The focus of this strategy is on the correction of safety hazards. ■ Partner with and/or support the funding application of qualified affordable housing developers for regional, state, and federal affordable housing funds; including HOME funds, Low Income Housing Tax Credits (LIHTC), and mortgage revenue bonds. Cupertino Department of Community Development/ Responsible Agencies Housing Division; West Valley Community Services Time Frame Ongoing Funding Sources BMR AHF; CDBG; HOME Rehabilitate five units per Quantified Objectives year for a total of 40 years over eight years H E 3 6 DRAFT CHAPTER 4 Housing Element Strategy 16: Preservation of At-Risk Housing Units. One housing project— Beardon Drive (eight units) — is consid- " ' ""'' " ` ered at risk of converting to market-rate housing during the next ten years. The City will proactively contact the property owner regarding its intent to remain or opt of the afford- �� �, , ' °� �.� � .. :� � '� able program. In the event the pro�ect becomes at risk of ��. . � ��� , r �t ��,��,{�,�` y�:': , � - _ converting to market-rate housing, the City will work with . the property owner or other interested nonprofit housing �f�° �"'�"' f �^ �,�� � providers to preserve the units. ,: ;,v�R AHF a„�, . _,_ , support residential rehabilitation throughaut The City will continue to monitor its entire portfolio of Cupertino affordable housing for-sale and rental inventory annually. The City will monitor its affordable for-sale inventory by requiring Below Market-Rate (BMR) homeowners to submit proof of occupancy such as utility bills, mortgage loan documentation, homeowner's insurance, and property tax bills. The City will further monitor its affordable for-sale inventory by ordering title company lot books, reviewing property profile reports and updating its public database annually. The City will monitor its affordable rental inventory by verifying proof of occupancy and performing annual rental income certifications for each BMR tenant. The City records a Resale Restriction Agreement against each affordable BMR for-sale unit and a Regulatory Agreement for BMR rental units to help ensure long-term affordability. To help further preserve the City's affordable housing stock, the City may consider providing assistance to rehabilitate and upgrade the affordable units as well. DRAFT HE-37 2040 GENERAL PLAN City of Cupertino �_. 4 ��<<� Cupertino Department of ,� ��� , ,.�,, � � �,�,� ��� ,;,�f�, x �� � Responsible Agencies Community Development/ ,��s . . �� ��� � � �.� � ,�;. �� � � �� M � Housing Division ; " �� '1� ���'�� ��., ,��� �` '' � A � �'�,,'�!�. �._,.,;.��,�,� �� ;�� u, ,� ; � - ` Annually monitor status of ? �;��. �°°�� � � ���' �,� �,�� affordable projects; contact I �-� ' . `� ""';, "`� �" �` + � Time Frame property owner of at risk � � i `' ' � ` i � project at least one year ! i. �I � '� .� � _�, ��.-� �,� in advance of potential � - >�ng conversion date. � that 1s cons�dered at risk for converting to Funding Sources BMR AHF; CDBG; HOME market-rate housing Quantified Objectives N/A � a Strategy 17: Condominium Conversion. The existing Condominium Conversion Ordinance regulates the conversion of rental units in multi-family housing development in order to preserve the rental housing stock. Condominium conversions are not allowed if the rental vacancy rate in Cupertino and certain adjacent areas is less than five percent at the time of the application for conversion and has averaged five percent over the past six months. The City will continue to monitor the effectiveness of this ordinance in providing opportunities for homeownership while preserving a balanced housing stock with rental housing. Cupertino Department of Responsible Agencies Community Development/ Planning Division Time Frame Ongoing Funding Sources None required Quantified Objectives N/A H E-3 8 DRAFT CHAPTER 4 Housing Element Strategy 18: Housing Preservation Program. When a proposed development or redevelopment of a site would �''�� .,. �� �-_��� cause a loss of multi-family housing, the City will grant � _ �� : ;;, �,,,_.. � � � �� � � , . . approval only if: ' � "" �' �m�'°`�''� � � ' � ..r�.�► � ,� ; � �, � � ��� � � ; ■ The project will comply with the City's Below Market-Rate f��. � � `�"`; ��� �Y�: � �- �.��` . � - Program, � � , �` (� ��. � , ; .... � ��;IC�� �-.+r +�. � ,�a �-. ■ The number of units provided on the site is at least equal , __ � ,� , n.�---� � :�....... _ � to the number of existing units, and l�,r� �.;,cy w�i� mo�,�t�r Grs p���-���,��� �.,, affordable for-sale and rental housing ■ Adverse impacts on displaced tenants, in developments annually with more than four units, are mitigated. Cupertino Department of � � Community Development � Responsible Agencies /Planning Division and � Housing Division � � Time Frame Ongoing � � � Funding Sources None Required � ff , Quantified Objectives N/A 5 p Strategy 19: Neighborhood and Community Clean-Up Campaigns. The City will continue to encourage and spon- sor neighborhood and community clean-up campaigns for both public and private properties. Cupertino Department of Responsible Agencies Community Development Time Frame Ongoing Funding Sources General Funds Quantified Objectives N/A DRAFT HE-39 2040 GENERAL PLAN City of Cupertino ° � ��• .� �. �� � ��: -,-,�'�#��+��,�, ,: `�,�`". �- "�`�- �,��" ��� . , ... � �� ��'4, �� q .. � b�r '��i k,��w`. ,.��$�� °";�,: " � t� � � / ,`,� s�'< 7R.� -,► ` f �:i �s7 4w��h e, �,� ,�t���,�`�'t'�'� ���o- � �;r°: , �, �p, ���� �� ,�; w,� � A ♦ * "' ♦ �� � *� �;�l�'+�� �,� � " � ����t �,� r'�a" ��° x � i►t � ,� e` *;x� 'AS_'�L ��� ", ' �"�'i.�,�; � „A� a� �'4'�'f7�^ � �,$��,����► �}"',.� y�y 3,.,1 q, . � �b Y�ti ;�• �'�� � '!k j� ���t�' � ����:�'�- � � ��' Policy HE-10: Energy and Water Conservation "'� �<'+�'�,�'�.» r1�;� �~; �_ t y� , ' f "«:°; ��=' � �a__-, �rw: ►;�, �n,�� .,, � ��.�� . . ,,,,� , Encourage energy and water conservation in all existing ��.. , �`�"��i�����,��;.�,z��� �';„ ��-..., �,,;�i�,��e��a_�.�;�.�,�, � and new residential development. t.or�� �.��;�;,.y cle�+� .:� ._,rn���iyns vviu cont�nue to be sponsored for both public �mp�ementltlg Stt"ateglGS and private properties Strategy 20: Enforcement of Title 24. The City will contin- ue to enforce Title 24 requirements for energy conservation and will evaluate utilizing some of the other suggestions as identified in the Environmental Resources/Sustainability element. Cupertino Department of Responsible Agencies Community Development Department/Building Division Time Frame Ongoing Funding Sources None Required Quantified Objectives N/A Strategy 21: Sustainable Practices. The City will continue to implement the Landscape Ordinance for water conservation and the Green Building Ordinance (adopted in 2013) that applies primarily to new residential and nonresidential development, additions, renovations, and tenant improvements of ten or more units. To further the objectives of the Green Building Ordinance, the City will evaluate the potential to provide incentives, such as waiving or reducing fees, for energy conservation improvements at affordable housing projects (existing or N E-4 0 DRAFT CHAPTER 4 Housing Element �v new) with fewer than ten units to exceed the minimum � «. � � requirements of the California Green Building Code. This � ,,��� �� �, ����� �� �� City will also implement the policies in its climage action ;�� �' ,'���� �� ���p a, ��_ �,s�"""�` �"�'�`�:s pan to acheive residential-focused greenhouse gas emission ���� ������� .� `�' �° � �� . �"��� a�ti� ° � ° re recutions and further these community energy and water � �� � �;� ,��r�.��� ��;� � ������� '���� y� ��� �� � � � . conservation goals ��� '� � ' ���� ��� ��� �� �� � ,- �� ..,.r�� °`�`��� � � � ��° - �� �,;�;' ��+ '�{�� � � �� � Cu ertino De artment of ��` ` �M° � �, ,.. p p �r ������,.� ��� , � Community Development/ `�� '�k �� °y � - �Y�� ,�" � "� R2SpOnSlb�2 Ag2nC12S , �tie C,ity's Lar,i�sca�e Ura+n�nce will P�ann�ng Division anCl continue to be implemented for water Building Division conservation Ongoing; consider further incentives in 2015 to � Time Frame encourage green building ; practices in smaller developments � , Funding Sources None Required Quantified Objectives N/A � _ . . __ _ . .__� • 1 . � M . � � � � � Policy HE-11: Lower-Income and Special Needs Households Support organizations that provide services to lower-income households and special need households in the City, such as the homeless, elderly, disabled and single parent households. Implementing Strategies Strategy 22: Emergency Shelters. The City amended the Zoning Ordinance in 2010 to allow emergency shelters as a DRAFT H E-4 1 2040 GENERAL PLAN City of Cupertino � �. . � � ���'- v�� .��"� , matter of right in the "BQ" Quasi-Public zoning district. The �� �'� ,� �� City will: �; � ,yl ,�. ��. r� -� � ''� .° �* `�` � ■ �, � ��� � �,� � ����� Revise the Zoning Ordinance to remove two ��'� � � �,_� � 9�� � �-� v��� � requirements: (1) that shelters be located in churches, ��,;�;�� �,;. ,���,.�� ���° ""�'"� � and (2) the restricted hours of operation for shelters. "��° � �����'� ������`���t � ■ Revise the Zonin Ordinance to add an additional �r �� �'. g �� a ��;. � � �,.���� =� � �� -� .. `�` requirement that a management plan shall be submitted �.a:4 +�.a wr .. ... �� '� "�MII ;,��� �.,cy w,ii col,t����,t t� prov�de �-�;1� to the City prior to shelter operation. Housing servic�s far�all residents ot C�a�ert�no ■ Continue to facilitate housing opportunities for special needs persons by allowing emergency shelters as a permitted use in the BQ zoning district. ■ Subject emergency shelters to the same development standards as other similar uses within the BQ zoning district, except for those provisions permitted by State law and provided in the Zoning Ordinance for emergency shelters. Cupertino Department of Responsible Agencies Community Development/ Planning Division Amend Zoning Ordinance in Time Frame 2014; Ongoing Funding Sources None Required Quantified Objectives N/A Strategy 23: Supportive Services for Lower-Income Households and Persons with Special Needs. The City will continue to utilize its Below Market-Rate Affordable Housing Fund, Community Development Block Grant (CDBG) funds, and General Fund Human Service Grants (HSG) funds to provide for a range of supportive services for lower-income households and persons with special needs. H E-4 2 DRAFT CHAPTER 4 Housing Element . . ...... �?it��A� �.'"'� � .,. ��"�"r1 ��� ".+:, �° �,i � �� Cupertino Department of `� � Responsible Agencies Community Development/ ��#�����`�` �'� `= ` � , ��:." Housing Division � ����� Annually through the Action '�;�� ` `� s., Plan funding application � ,.a .. ', process allocate CDBG and � .�,� �' '� �,.�, ; Time Frame HSG to organizations that ,{ ���"Yti. � ���u���: cater to the needs of lower , It1COf712 anC� SpeCla� I122C�S � ti 1u1U zoning amendment airo�::�� � households a emergency shelters as a matter of right in } the Quasi-Public zoning district Funding Sources BMR AHF; CDBG; HSG f Quantified Objectives N/A ; _ _ _ _ _ v� Strategy 24: Rotating Homeless Shelter. The City will continue to support the operation of a Rotating Homeless Shelter program. Cupertino Department of - Community Development/ Responsible Agencies Housing Division; Faith in Action Time Frame Ongoing Funding Sources CDBG; HSG; BMR AHF Quantified Objectives N/A � , ,� � � � i .�. � Policy HE-12: Housing Discrimination The City will work to eliminate on a citywide basis all unlawful discrimination in housing with respect to age, race, DRAFT H E-43 2040 GENERAL PLAN City of Cupertino �.. w � .��,�� �,� . M „ -� , sex, sexual orientation, marital or familial status, ethnic .�, _ � "' _�- . background, medical condition, or other arbitrary factors, so �� � �' � � ��� ����� .._.. a----- �a�,. ��� ��_�► �-�����._ ��� ��� �� that all persons can obtain decent housing. �t. �_-.� _ - �,, �; � .��..�: Implementing Strategies � � . Strategy 25: Fair Housing Services. The City will continue �,� :�, ��a � to: . � � � �'"" Provide fair housing services, which include outreach, . �T�he ��ty snaii continue �:; �uN��,. � operation of rotatina homeless s�,��re�s education, counseling, and investigation of fair housing complaints. ■ Retain a fair housing service provider to provide direct services for residents, landlords, and other housing professionals. ■ Coordinate with efforts of the Santa Clara County Fair Housing Consortium to affirmatively further fair housing. Distribute fair housing materials produced by various organizations at public counters and public events. Cupertino Department of Community Development/ Housing Division; Santa Responsible Agencies Clara County Fair Housing Consortium; Eden Council for Hope and Opportunity (ECHO) Time Frame Ongoing Funding Sources BMR AHF; CCDBG Quantified Objectives N/A H E-4 4 DRAFT CHAPTER 4 Housing Element �M: ,� �� a ro . �r � � �. �, �� ,� � � . `��`� ��`��� ro �� � ���` ,� ""��".�»� e�` � � � � � � ,�� � � ,w ,�r .� , � �� � � � � � ,� p ," ,� �" i � � i � ���� k�' � '� �� � :x� ,;«`� i r� � �. �� � � �,.o� ��� � � �< �'��`� k ;�: , . �_ e. `:, ,� , �. .. �, � , ,, �-.�� � , 4 . , ,; � [ "�>ti} Policy HE-13: Coordination with Local Schoo - , �� ; � .. ,� ,� F. �� .. Districts � ��.�,��:;�,���.�.:r �.- �_ �...�. The Cupertino community places a high value on the - , _- .�- -�.+�,�r�ate excellent quality of education provided by the three unlawful housing discrimination public school districts which serve residents. To ensure the long-term sustainability of the schools in tandem with the preservation and development of vibrant residential areas, the City will continue to coordinate with the Cupertino Union School District (CUSD), Fremont Union High School District (FUHSD), and Santa Clara Unified School District (SCUSD). Policy HE-14: Coordination with Regional Efforts to Address Housing-Related Issues Coordinate efforts with regional organizations, including ABAG and the Bay Area Air Quality Management District (BAAQMD), as well as neighboring jurisdictions, to address housing and related quality of life issues (such as air quality and transportation). Policy HE-15: Public-Private Partnerships Promote public-private partnerships to address housing needs in the community, especially housing for the workforce. Implementing Strategies Strategy 26: Coordination with Outside Agencies and Organizations. The City recognizes the importance of partnering with outside agencies and organizations in addressing local and regional housing issues. DRAFT H E-4 5 2040 GENERAL PLAN City of Cupertino �.!��,, �� ��� �`"� ��, �' These may include, but are not limited to, the following: , 1�l9����.� a `:�"��, ;:` � '`��s�x� �'�r� ���'.��`"�� ■ School districts t�:'� �, y� � - �•.Y��, f_`t � *T =k,�es•"y�� �1�� ���f w c�� +�s� l -'r^*��'. .'.A'' ^i�:,,f�' �..�L� , � ,�� {�. � ��81 sh h� jTj`'� `�� "�� � '�� ���.-�.$�c �-}�:� ■ H o u si ng provi de rs , . � _ ��-���: a �+, * i �� .�� �� � �e .''� `' � °y� ■ Nei hborin 'urisdictions `,� �, .�,. � 9 9 J , � , � . �i�; ..,,�� y�~,r� � 3'�.' r ti . '� '�`� ` � i °' � ■ Association of Bay Area Governments (ABAG) _ � ;''�; ' `�" r .�i . Air Quality Management District Lc�ordination with local schools wilt�r�sure the continued excellence of Cupertino's ■ Housing Trust Silicon Valley educational system ■ Santa Clara County Fair Housing Consortium ■ Santa Clara County HOME Consortium ■ Santa Clara County Continuum of Care (COC) ■ Housing Authority of Santa Clara County (HASCC) ■ Valley Transportation Authority (V�A) Specifically, the City will meet with these agencies/ organizations periodically to discuss the changing needs, development trends, alternative approaches, and partnering opportunities. Cupertino Department of Community Development Responsible Agencies Planning Division and Housing Division Time Frame Ongoing Funding Sources None Required Quantified Objectives N/A H E-46 DRAFT . a,y .-.�::�t«..��+�" t� ,� �� ;��, � »„„� ,�''�'°. �.��_ _ �m ,„.�°^°°..---- --- �- �- �, ..�. a t „�,�s�r ,�"°��° �,. � �� s.... � : , r i ..�... ... �„, � �� , . , . �o � �,.� � a �w � � .. . . , � �.�,,. 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' `�w �S !6.- �+' Hf.:"k,�a+r,.:; � .�b';�; �' ��da e v `� 3�;.' .`�W,. ,,,r�:,.u�.«Y�'c:a��i.,�n k f"��'�yt��,%F'P ,.:�. °� ...... k,A,.+' >. ,. �� �.. ✓ ° ;M'� f °��. d'�, k b .�'�al'.'ki �T�Z �s� � � � �4 � nY `rSV .t» �� .�$� M dk^5 1. ��..4��.�.: ,c;, x �6„. .�,�a,. _ �� ,� „ ��� r�"4� „�� ��� ��»�+r,.".�?�,, *s�,H� �n,;? � de�"x=��� ,r3. ,.a� ,�. ,. � .,,, ....�,� . .., �s�� � . �. :J r��s r i^c� � :�dt.;�� � ) �, t ,�C s t � �,.�J a c,"�� +�: �+tz� , �� � �,"� �t��' � �� �a � a� � � ,�� ' c� >y, °� ���ll 'r, � ,9�r� ���� $ ;�:� `� �'".� :c¢ �e� ��$`rka'�4.+I ��:�.�c �',$�". � '�.r �2,%�' ., m�i'�„S�''"` .t�:7�% ,��` .i.�.,, w s'" Housing Element Technical Report Appendix B I NTRODUCTION • Cupertino is a unique community with a high quality of life, : .. . a renowned school system, and a robust high-technology = � • * --• ' - economy. The long-term vitality of Cupertino and the � �� `w• � � � � `=� � . local economy depend upon the availability of all types of ; � � , � housing to meet the community's diverse housing needs. : . . . �� � As Cupertino looks towards the future, increasing the range = � r • and diversity of housing options will be integral to the ' ' '* ' ` City's success. Consistent with the goal of being a balanced community, this Housing Element continues the City's commitment to ensuring new opportunities for residential development, as well as for preserving and enhancing our existing neighborhoods. 1.1 Role and Content of Housing Element This Housing Element is a comprehensive eight-year plan to address the housing needs in Cupertino. The Housing Element is the City's primary policy document regarding the development, rehabilitation, and preservation of housing for all economic segments of the population. Per State Housing Element law, the document must be periodically updated to: ■ Outline the community's housing production objectives consistent with State and regional growth projections ■ Describe goals, policies and implementation strategies to achieve local housing objectives ■ Examine the local need for housing with a focus on special needs populations ■ Identify adequate sites for the production of housing serving various income levels ■ Analyze potential constraints to new housing production ■ Evaluate the Housing Element for consistency with other General Plan elements DRAFT g-3 2040 GENERAL PLAN City of Cupertino Housing element law continually evolves. This element for the 2014-2022 planning period addresses all laws adopted since the element was last updated in 2010. SB 812 requires that the City assess the housing needs of developmentally disabled persons. SB 244, which does not pertain to the housing element per se but is triggered by a housing element update requires that cities and counties address the infrastructure needs of disadvantaged unincorporated communities within the jurisdiction's designated sphere of influence. According to data from the California Department of Water Resources, Cupertino contains no disadvantaged communities within its sphere of influence. This updated Housing Element focuses on housing needs from January 31, 2015 through January 31, 2023, in accordance with the housing element planning period for San Francisco Bay Area jurisdictions established by State I aw. Relationship to the General Plan State law requires that a General Plan and its constituent elements "comprise an integrated, internally consistent and compatible statement of policies. "This implies that all elements have equa) legal status; no one element is subordinate to any other element. This Housing Element must be consistent with the policies and proposals set forth by the General Plan, including the Land Use and Circulation Elements. Additionally, environmental constraints identified in the Health and Safety Element and the Environmental Resources/Sustainability Element are recognized in the Housing Element. When an element in the General Plan is amended, the Housing Element will be reviewed and modified as necessary to ensure continued consistency among the various elements. The City will ensure that updates to these elements achieve internal consistency with the Housing Element as well. B-4 DRAFT Housing Element Technical Report Appendix B 1.2 Public Participation This Housing Element has been developed with extensive participation from members of the Cupertino community. The public participation process described below engaged a diverse set of community stakeholders in a productive dialogue on housing issues. Participants included community members, property owners, housing developers, service providers, school districts, and the business community. Meeting and workshop announcements and agendas, as well as presentation materials and web cast archives of all stakeholder and community meetings, were posted on the City's website. A postcard advertising meetings (February 19, March 4, March 11, and April 1) was direct mailed to all Cupertino addresses to ensure that all economic segments of the community were invited to participate. Email notification for all meetings was sent to persons requesting information about the General Plan Update (over 300 persons). The paragraphs below summarize the outreach activities and meetings in more detail. Stakeholder Interviews To inform the Cupertino Housing Element update and identify key housing needs, issues, and opportunities, the update team interviewed approximately 25 stakeholders. Most of the stakeholders were interviewed in small groups organized by interest, including community advocates, economic development, service providers, school districts, and property owners/developers. The team conducted six group interviews and one individual interview. To ensure that the concerns of low- and moderate-income and special needs residents were addressed, agencies and organizations that serve the low- and moderate-income and special needs community were invited to participate in the stakeholder interviews. Section 7 includes a list of invited DRAFT B-5 2040 GENERAL PLAN City of Cupertino and interviewed parties as well as a summary of key themes and findings. Joint Planning Commission/Housing Commission Workshop On January 23, 2014 the Planning Commission and Housing Commission hosted a joint workshop to begin discussion on potential housing sites. Eleven participants broke into small groups and identified potential future sites and the criteria for increasing density in certain areas. Housing Commission Workshop On February 12, 2014, the Housing Commission hosted a workshop to continue the sites discussion and prioritize sites for inclusion in the Housing Element. Following a project update presentation, the 15 participants broke into groups to prioritize potentia) housing sites, with the goal of showing adequate capacity to achieve a housing production goal of 1,064 units, consistent with Cupertino's Regional Housing Needs Allocation (RHNA) for 2014-2022. Planning Commission Open House and Study Session On February 19, 2014, the Planning Commission hosted an open house and study session to provide a public forum to continue the Housing Element sites discussion. A public hearing nwas conducted on the item and the Planning Commission recommended criteria to focus the sites selection. Specifically, the Commission recommended removing sites that were viewed as unviable (successful shopping centers, sites with existing established institutional uses, and small sites with low yield or no property owner interest). The Planning Commission recommended including sites that would further three goals: B-b DRAFT Housing Element Technical Report Appendix B ■ Distribute housing throughout the city ■ Encourage development along the Priority Development Area designated by the One Bay Area plan ■ Minimize impacts to schools City Council Study Session On March 4, 2014 the City Council held a study session to discuss in depth the potential housing sites that would be analyzed in the environmental document to be prepared for the Housing Element update and parallel amendments to the Land Use and Circulation Elements. A public hearing was conducted on the item and community members had the opportunity to comment on the Housing Element and housing sites. Environmental Review Scoping Meeting On March 11, 2014, the City held a scoping meeting to discuss the environmental review of the combined General Plan Amendment and Housing Element update. The meeting provided an opportunity for the community to comment on the scope and content of the planned Environmental Impact Report (EIR). Housing Commission Meeting on Housing Policy On March 19, 2014, the Housing Commission held a study session to discuss revisions to housing goals, policies, and strategies associated with the Housing Element update. A public hearing was conducted on the item and five community members attended. DRAFT B-7 2040 GENERAL PLAN City of Cupertino Joint City Council/Planning Commission Meeting on Housing Policy On April 1, 2014, the Planning Commission and City . Council held a joint study session to discuss revisions to housing goals, policies, and strategies included in the Housing Plan section of the 2014-2022 Housing Element. A public hearing was conducted on the item and community members had the opportunity to comment on the Housing Element Housing Plan. 1.3 Incorporation of Community Feedback At the February 19, 2014 Planning Commission open house and study session, participants emphasized that future development should reflect the character of the City and neighborhoods in which they are located. They also expressed the need to distribute housing throughout Cupertino and for smaller unit affordable rental housing. In response, the residential sites inventory includes sites outside the City's core as a means to distribute housing production citywide. The Housing Element also includes Policy HE-5: Range of Housing Types, which encourages the development of diverse housing stock that provides a range of housing types (including smaller, moderate cost housing) and affordability levels. A concern about the viability of mixed use was also expressed during the community outreach activities. Participants and decision makers noted that developers are interested in developing the residential portion of a project and do not include substantial commercial uses. To reflect this concern, the site suitability analysis—conducted to identify appropriate sites for inclusion in the Housing Element—used locational criteria to select sites that could best facilitate mixed use development, especially at corner properties where commercial uses are most viable. B-8 DRAFT Housing Element Technical Report Appendix B Participants at the March 19, 2014 Housing Commission Study Session suggested that energy conservation mechanisms can provide cost savings and result in more affordable housing costs. Existing goals and policies support energy conservation for all residential construction. In addition, the City will evaluate the potential to provide incentives for affordable development to exceed the minimum requirements of the California Green Building Code. Community members were particularly involved in the site inventory. The inventory of residential opportunity sites was developed in consultation with the Housing Commission, Planning Commission, City Council, and members of the public. At four meetings, commissioners and council members, as well as members of the public, discussed the inventory. During these discussions, several sites were removed and new sites were added based on input from stakeholders. Decisions to add or remove sites were based on realistic expectations for sites to be redeveloped within the planning period. Schoo) impacts were a common theme during the site selection process. Staff explained to participants and decision makers that impact to schools may not be a goal of the site selection exercise since Government Code Section 65995 preempts this issue. This law states that school impact mitigation fees are presumed to fully mitigate any school impacts associated with development. To ensure the long-term sustainability of the schools in tandem with the preservation and development of vibrant residential areas, HE-Strategy 26 in the Housing Plan directs the � City to continue to coordinate with the Cupertino Union School District (CUSD), Fremont Union High School District (FUHSD), and Santa Clara Unified School District (SCUSD). DRAFT g-9 2040 GENERAL PLAN City of Cupertino 1.4 Organization of Housing Element Following this introduction, the Housing Element includes the following components: ■ An analysis of the City's current and future housing needs ■ An analysis of governmental and non-governmental constraints to housing production ■ An inventory and analysis of housing resources ■ A housing plan setting forth goals, policies, strategies, and quantified objectives to address the City's housing needs Included in the appendices is a thematic summary of the stakeholder interviews, a review of the prior (2007-2014) Housing Element, and a parcel-specific residential sites inventory. 2. HOU�ING NEEDS ASSESSMENT The Housing Needs Assessment describes the housing, economic, and demographic conditions in Cupertino; assesses the demand for housing for households at all income levels; and documents the demand for housing to serve special needs populations. The Housing Needs Assessment is intended to assist Cupertino in developing housing goals and formulating policies and strategies that address local housing needs. To facilitate an understanding of how the characteristics of Cupertino are similar to, or different from, other nearby communities, this Housing Needs Assessment presents data for Cupertino alongside comparable data for all of Santa Clara County and, where appropriate, for the San Francisco Bay Area and the state of California. B-1 0 DRAFT Housing Element Technical Report Appendix B This Needs Assessment incorporates data from numerous sources, including: ■ United States Census Bureau and American Community S u rveys (ACS) ■ Association of Bay Area Governments (ABAG) ■ State of California Department of Housing and Community Development (HCD) ■ State of California Departments of Finance, ■ State of California Employment and Development Department, State of California Department of Social Services ■ State of California Department of Public Health ■ United States Department of Housing and Urban Development (HUD) Comprehensive Housing Affordability Strategy (CHAS) ■ Housing Authority of the County of Santa Clara ■ Santa Clara County Homeless Census ■ Veronica Tam and Associates (Housing Element Consultant) ■ City of Cupertino Community Development Department (CDD) ■ 211 Santa Clara County ■ Craigslist.org ■ Zillow.com ■ DQNews.com Specific data sources used are identified in each table or figure. DRAFT B-1 1 2040 GENERAL PLAN City of Cupertino 2.1 Regional Context Cupertino is a suburban city of 10.9 square miles located in Santa Clara County. The City incorporated in 1955 and grew from a small agricultural community into a suburban place during the expansion of Silicon Valley. The cities of Los Altos and Sunnyvale limit any potential of expansion of Cupertino to the north, The cities of Santa Clara and San Jose abut Cupertino to the east, and Saratoga is to the immediate west. Unincorporated areas of Santa Clara County form the southern and western boundaries of the City. Cupertino's built environment is dominated by single-family subdivisions, with distinctive commercial and employment centers separated from the surrounding residential areas. Because of the suburban pattern, the city has a largely automobile-based land use and transportation system. Highway 85 functions as the main north/south traffic route through the city, and Interstate 280 is a major east/west route. 2.2 Population & Household Trends Population As presented in Table 2.1, between 2000 and 2010 the City of Cupertino's population percent change increased by 15.3 percent, which is at a higher rate than Santa Clara County at 5.9 percent, San Francisco Bay area as a whole at 5.4 percent, and the State of California at 10 percent. During this period, Cupertino grew from 50,546 to 58,302 persons, which translates to an increase of 15.3 percent. This growth was much more significant than the growth experienced by the region overall. However, a portion of this population growth can be attributed to the City's annexation of 168 acres of land between 2000 and 2008. Cupertino's annexation of Garden Gate, Monta Vista, and scattered B-1 2 DRAFT Housing Element Technical Report Appendix B County "islands" added 1,600 new residents. After removing the population increases from these annexations, the City of Cupertino experienced a 12-percent increase in its population during the previous decade. By comparison, Santa Clara County's population grew by 5.9 percent, while the nine-county Bay Area's population grew by 5.4 percent. Overall, the state of California's population grew more similarly to Cupertino's, with an overall increase of 10 percent. Households A household is defined as a person or group of persons living in a housing unit, as opposed to persons living in group quarters, such as dormitories, convalescent homes, or prisons. According to the ACS and ABAG, there were 20,181 households in Cupertino in 2010 (see Table 2.1). The City added approximately 2,000 new households between 2000 and 2010, an increase of 11 percent. Approximately 600 of these households, however, resulted from annexations. After adjusting for household increases due to annexation, the number of households in Cupertino grew by only eight percent between 2000 and 2010. During the same time period, the number of households increased by 6.8 percent in Santa Clara County, 5.8 percent in the Bay Area as a whole and 9.3 percent in the State of California. Average Household Size Average household size is a function of the number of people (iving in households divided by the number of occupied housing units in a given area. In Cupertino, the average household size in 2011 was 2.83, slightly higher than the Bay Area as a whole at 2.69, but slightly lower than Santa Clara County at 2.89 and the State of California at 2.91 (see Table 2.1). Because population growth has DRAFT B-1 3 2040 GENERAL PLAN City of Cupertino outpaced the increase in households in Cupertino, the average household size has increased since 2000. The contrary is true for the County. Household Type Households are divided into two different types, depending on their composition. Family households are those consisting of two or more related persons living together. Non-family households include persons who live alone or in groups of unrelated individuals. As shown in Table 2.1, Cupertino has a large proportion of family households. In 2011, family households comprised 77.4 percent of all households in the city. Cupertino's family households figure is higher than Santa Clara County's family households figure at 70.8 percent and the Bay Area as a whole at 64.8 percent and the State of California at 68.6 percent. As of 2011 Cupertino's non-family households comprised of 22.6 percent of all households in the city. Cupertino's 22.6 percent is lower than Santa Clara County at 29.2 percent and the Bay Area as a whole at 35.2 percent and State of California at 31.4 percent. Household Tenure Households in Cupertino are more likely to own than rent their homes. According to Table 2.1, 62.6 percent of Cupertino households owned their homes in 2010, a minimal decrease from 2000. Comparing the City of Cupertino with other jurisdictions, as of 2010, 57.6 percent owned their home in Santa Clara County, 56.2 percent in the Bay Area as a whole and 55.9 percent in the State of California. As of 2010, renter households comprised 37.4 percent of all households in Cupertino, 42.4 percent in Santa Clara County, 43.8 percent in the Bay Area as a whole and 44.1 percent in the State of California. B-1 4 DRAFT Housing Element Technical Report Appendix B ` • ' M i i � � 1► i ! 1 1 i � � a,ti,a ��i�������,�,�� �i��,,���ii�i�iwi iw " ,. �° ���A���:+� •- .a�. ��"� �I��I�I�„a 1 IIfV'I h,�ug��f�P� i?d�� i�''� 4 �i,iri''a. � �;�- ,� ;����� .;.�u� ti„Y, �'?"%I�I�r � ,. i� ��� . • • . ��' • City of Cupertino Population 50,546 58,302 7,756 15.3% Households 18,204 20,181 1,977 10.9% Average Household Size(a) 2.75 2.83 Household Type(a) Families 74.8% 77.4% Non-Families 25.2% 22.6% Tenure Owner 63.6% 62.6% Renter 36.4% 37.4% Santa Clara County Population 1,682,585 1,781,642 99,057 5.9% Households 565,863 604,204 38,341 6.8% Average Household Size(a) 2.92 2.89 Household Type(a) Families 69.9% 70.8% Non-Families 30.1% 29.2°/a Tenure Owner 59.8% 57.6% Renter 40.2% 42.4% Bay Area(b) Population 6,783,760 7,150,739 366,979 5.4% Households 2,466,019 2,608,023 142,004 5.8% Average Household Size(a) 2.69 2.69 Household Type(a) Families 64.7% 64.8% Non-Families 35.3% 35.2% Tenure Owner 57.7% 56.2% Renter 42.3% 43.8% California Population 33,871,648 37,253,956 3,382,308 10.0% Households 11,502,870 12,577,498 1,074,628 9.3% Average Household Size(a) 2.87 2.91 Household Type(a) Families 68.9% 68.6% Non-Families 31.1% 31.4% Tenure Owner 56.9% 55.9% Renter 43.1% 44.1% Notes: (a)Average household size and household type figures from American Community Survey(ACS),2007-2011. b)Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, SantaClara,Solano,and Sonoma Counties. Source:Association of Bay Area Governments(ABAG), Housing Element Data Profiles, December 2013. DRAFT B 15 2040 GENERAL PLAN City of Cupertino Age Distribution Cupertino's age distribution, shown in Table 2.2, is relatively similar to that of Santa Clara County, with a few notable exceptions. In both Cupertino and Santa Clara County, persons under 20 years old make up over a quarter of the overall population. In the City, the number and proportion of persons in this age group have increased slightly since 2000. However, compared to the County as a whole, Cupertino has a lower proportion of younger adults in the 25 to 34 age range but a higher proportion of older adults (persons 45 to 54 years old). In fact, from 2000 to 2010, the fastest growing segment of the Cupertino community was older adults in the 45 to 54 year old age category, which increased from 15.4 to 17.3 percent of the tota) population. In contrast, the proportion of other adults (those in the 25 to 44 age cohort) showed the sharpest decline between 2000 and 2010. In addition, Cupertino's elderly population, residents age 65 and above, increased from 11 percent to 13 percent between 2000 and 2010. . : . � - - • � � � � � ;��� �uui�u�i�N�u N� u�Vu�ii� ��� 3�" M .�:. �,. ;. � � : � ��;���� � . .� . .� : �••� �Y.... , W � .,..i, �.��,.��� ^��rj"",' A�'a�a,,a`>. a�d'�2�"��R^'ro,.., A�� ��.!. � Under 15 22.4% 22.5% 20.9% 20.2% 15 to 17 4.3% 5.1% 3.9% 3.9% 18 to 20 2.5% 2.8% 3.9% 3.8% 21 to 24 2.7% 2.8% 5.4% 5.1% 25 to 34 12.1% 8.6% 17.8% 15.1% 35 to 44 21.0% 18.2% 17.6% 15.6% 45 to 54 15.4% 17.3% 13.0% 14.8% 55 to 64 8.7% 10.2% 8.0% 10.4% 65 to 74 5.8% 6.2% 5.2% 6.0% 75 to 84 3.8% 4.0% 3.3% 3.5% 85 + 1.4% 2.2% 1.1% 1.5% Median Age 37.9 39.9 34.0 36.2 Sources:Association of Bay Area Governments(ABAG), Housing Element Data Profiles, December 2013. B-1 6 DRAFT Housing Element Technical Report Appendix B Household Income According to American Community Survey (ACS) estimates, the median household income in Cupertino in 2011 was $124,825. This figure is significantly higher than the estimated median household income of $89,064 for Santa Clara County.� Furthermore, 62.3 percent of Cupertino households earned more than $100,000 in 2011, whereas only 45.0 percent of Santa Clara households and 39.0 percent of Bay Area households fall into this income category. On a per capita basis, Cupertino is also wealthier than Santa Clara County. In 2011, the per capita income in Cupertino was $51,965, compared to $40,698 in the County. Table 2.3 summarizes the distribution of household incomes for Cupertino, Santa Clara County, and the Bay Area. The Housing Element law establishes five income categories according to Area Median Income (AMI) for purposes of evaluating housing assistance needs: ■ Extremely Low Income (0-30 percent AMI) ■ Very Low Income (31-50 percent AM I) ■ Low Income (51-80 percent AM I) ■ Moderate Income (81-120 percent AMI) ■ Above Moderate Income (>120 percent AMI) 1 Median household income and per capita income data are calculated fields by the Census Bureau based on raw data from the American Community Surveys.Without access to the raw data,median and per capita income can- not be calculated for customized region not identified as a Census Designated Place. DRAFT B-� � 2040 GENERAL PLAN City of Cupertino The State and Federal governments classify household income into various groups based upon its relationship to the County AMI and adjusted for household size. In 2010, 79.2 percent of Cupertino households earned moderate or above-moderate incomes, and only 20.8 percent of useholds earned lower incomes (see Table 2.4).2 In comparison, 67.6 percent of County households earned moderate or above-moderate incomes and 32.4 percent earned lower incomes, including 12.6 percent who earned extremely low incomes. 2.3 Employment Trends &Jobs/Housing Balance Local Employment Opportunities Since 2000 there has been a net increase of over 1,200 jobs held by Cupertino residents, for a total of 25,200 employed residents in 2011. As shown in Table 2.5, the number of jobs held by Cupertino residents grew by 5.2 percent between 2000 and 2011. The City of Cupertino job growth percentage was far greater than the growth experienced by Santa Clara County as a whole �t 0.8 percent between 2000 and 2011. Despite this overall growth, most industry sectors experienced a decline in the number of jobs available. Between 2000 and 2011 the largest job losses in employment occurred in the manufacturing and retail trade sectors. These decreases were offset by growth in the professional, scientific, management, administrative, and waste management services industry, which added 1,748 jobs, and the educational, health, and social services industry, which added 1,144 jobs. Even with the recent changes to employment sectors during the previous decade, manufacturing remains the largest job sector for residents of both Cupertino and Santa Clara County. As 2 Data were obtained from the Comprehensive Housing Affordability Strategy (CHAS)prepared for HUD by the Census Bureau using 2006-2010 American Community Survey(ACS)data. B-1 8 DRAFT Housing Element Technical Report Appendix B • : • • r • � - : • � „ �, �:�r:r�� �':� � i ��, �� �II� ,� � � ��V , �";;� �,,;,,,i;,�,,;,,, � .- . #. . : . � �i� " ' • • * ° ��a i *II"� , ��� - .- '- - .- •_ _ Less than $24,999 1,844 9.1% 79,057 13.2% 404,254 15.7% $25,000 to $49,999 1,933 9.6% 90,027 15.0% 440,575 17.1% $50,000 to $74,999 1,965 9.7% 84,594 14.1% 403,087 15.6% $75,000 to $99,999 1,874 9.3% 75,974 12.7% 324,123 12.6% $100,000 or more 12,560 62.3% 269,998 45.0% 1,005,441 39.0% Total 20,176 100.0% 599,652 100.0% 2,577,480 100.0% Median Household $124,825 $89,064 (b) Income Per Capita Income $51,965 $40,698 (b) � : - • • � • � • � � i y i II, �����4 t�y� ��. w ..�re w� �' �{1�i��:rm�'g�✓,3�Ci� w "�+"" n'��rviaa�a.,s+mws�gweiaw�-aa:aI,�I>wmm�w�xams��a�.vaa�a.m&maY�s»�,,,w�iab� � t _ I 9 iY�I5 I �I�'M I � .� • �� * � . �� ,�,�� � '�1 ,�fl(�.. .�..P,a�� � . Extremely Low (30% 1,485 7.6% 75,395 12.6% or less) Very Low (31 to 50%) 1,320 6.7% 61,830 10.4% Low (51 to 80%) 1,260 6.4% 56,325 9.4% Moderate or Above 15,515 79.2% 403,195 67.6% (over 80%) $100,000 or more 19,580 100.0% 596,745 100.0% Total 20,176 100.0% 599,652 100.0% Source:Department of Housing and Urban Development(HUD), Comprehensive Housing Affordability Strategy(CHAS), based on American Community Survey(ACS), 2006-2010. DRAFT B-� 9 2040 GENERAL PLAN City of Cupertino of 2011, manufacturing jobs comprise 28.1 percent of all jobs held by Cupertino residents and 19.6 percent of jobs held by residents of Santa Clara County overall. The manufacturing sector includes the production of computer, electronic, and communication equipment, with such major employers as Apple and Hewlett-Packard. With the 2008-2012 collapse of the financial and credit markets and the worldwide recession, Cupertino and the broader Silicon Valley region lost some of the gains in key sectors that were achieved between 2003 and 2007. The impacts of the economic downturn, although serious, were somewhat localized to particular sectors and industries such as construction, manufacturing, and retail/wholesale trade. Fortunately for Cupertino, high-tech employment did not decline at the same rate as the rest of the economy, and long-term prospects for this sector remain strong. Unemployment According to unemployment data provided by the State of California Employment Development Department, as of February 2014, the City of Cupertino had an unemployment rate of approximately 3.9 percent. The unemployment rate for the City was less than that of the County as a whole (6.1 percent). Since 2008, the unemployment rate has remained stable in both the City and the County, which had unemployment rates of 3.8 percent and 6.0 percent, respectively, at that time. Long-term Projections Table 2.6 presents population, household, and job growth projections for Cupertino, Santa Clara County, and the nine-county Bay Area region between 2010 and 2040. The figures represent the analysis conducted by the Association of Bay Area Governments (ABAG) using 2010 Census data and a variety of local sources. B-2 0 C7RAFT Housing Element Technical Report Appendix B • • lii 1 � ��;��`��i:�'I �� �,h- �,�, ,�x,;� ,� ,�„� �. � °k .,�� �u�'a.�w��N��� :�.e a�,. ':�.:a., a.��a�.�,�.a�s»�sr�.a�e:s.:uc�� ��I� � ,� , � . , I > ..� �x�. �r.a.x,sv,. R..,. , . . _ , t!1� ' i, r��M� . w��� a .. . .. . .� � .� . _ .; . .- Agriculture forestry, fishing �b 0.3% 36 0.1% -52.6% 4,364 0.5% 4,425 0.5% 1.4% and hunting, and mining Construction 642 2.7% 420 1.7% -34.6% 42,232 5.0% 47,005 5.5% 11.3% Manufacturing 7,952 33.2% 7,077 28.1% -11.0% 231,784 27.5% 167,034 19.6% -27.9% Wholesale trade 628 2.6% 545 2.2% -13.2% 25,515 3.0% 20,252 2.4% -20.6% Retail trade 2,056 8.6% 1,540 6.1% -25.1% 83,369 9.9% 81,918 9.6% -1.7% Transportation and warehousing, 383 1.6% 425 1.7% 11.0% 23,546 2.8% 23,578 2.8% 0.1% and utilities Information 1,462 6.1% 1,370 5.4% -6.3% 39,098 4.6% 32,627 3.8% -16.6% Finance, insurance, real 1 246 5.2% 1,368 5.4% 9.8% 38,715 4.6% 44,015 5.2% 13.7% estate, and rental ' and leasing Professional, scientific, mana�ement, administrative, 4,667 19.5% 6,415 25.5% 37.5% 131,015 15.5% 152,960 18.0% 16.7% and waste management services Educational, health, and social 3,063 12.8% 4,207 16.7% 37.3% 123,890 14.7% 157,349 18.5% 27.0% services Arts, entertainment, recreation, 832 3.5% 734 2.9% -11.8% 49,186 5.8% 60,638 7.1% 23.3% accommodation, and food services Other services (except public 590 2.5% 715 2.8% 21.2% 29,987 3.6% 36,330 4.3% 21.2% administration) Public 362 1.5% 351 1.4% -3.0% 21,211 2.5% 22,421 2.6% 5.7% administration Total 23,959 100.0% 25,203 100.0% 5.2% 843,91 Z 100.0% 850,552 100.0% 0.8% Source:Association of Bay Area Governments(ABAG), Housing Element Data Profiles, December 2013. DRAFT g-2� 2040 GENERAL PLAN City of Cupertino Cupertino's population is expected to grow by 12,898 residents-from 58,302 in 2010 to 71,200 in 2040. This translates into an increase of 22 percent over 30 years. ABAG projects both Santa Clara County and the ABAG region to experience much (arger growth (36 percent and 31 percent over 30 years, respectively). Specifically, communities with lower housing costs have been experiencing influxes of residents in search of comparative affordable housing. As a community with high costs of housing, Cupertino has not experienced an influx of residents. Instead, Cupertino's job growth is expected to continue to outpace population and household growth in Cupertino between 2010 and 2020, compounding the "jobs rich" nature of the City, resulting in a jobs-to-housing ratio of 1.40 by 2020 (up from 1.29 in 2010) but mirroring the regional average of 1.40. Furthermore, job growth is projected to level off after 2020 to a comparable pace with population and household growth. Similar trends are also projected for the County and the ABAG region as a whole. � : . - • - • • • � � � � • : � • • • � � � - � x �t,' �:n � ,m't�:a '��^��? � i d.>�.�„ "s�'��d.� "�, � �,; a,'',,,,��`"�l� 3w � � ,,•;:^ �,+*.:� ,r p��.a „i :�;� � ��.3';�a 4 e�'�,.�'.w.� � �a,✓ rM� „� � � � �d F,�, ��;,a � ,s�"�� ��i� ,�a ,�,,��a��� h G � ^aA'e�'� 8 u�: a '�u�;1"�.;,�m�C�„'�1�,.::'^�"�0�,.,::l�l��,���km,�s�, A ;t�n 1�^h +�„ ,��^�,a��m""7mN,�� ta ��' �7��,!;S '•N . y� . . . , 5, 'i.�� `�".",. . ,,. . , , , . . ,., .�,.,�F`l�. , .���'4�, . .. ., . . City of Cupertino Population 58,302 62,100 66,300 71,200 6.5% 6.8% 7.4% Households 20,181 21,460 22,750 24,040 6.3% 6.0% 5.7% Jobs 26,090 29,960 31,220 33,110 14.8% 4.2% 6.1% Santa Clara County Population 1,781,642 1,977,900 2,188,500 2,423,500 11.0% 10.6% 10.7% Households 604,204 675,670 747,070 818,400 11.8% 10.6% 9.5% Jobs 926,270 1,091,270 1,147,020 1,229,520 17.8% 5.1% 7.2% Bay Area (a) Population 6,432,288 7,011,700 7,660,700 8,394,700 9.0% 9.3% 9.6% Households 2,350,186 2,560,480 2,776,640 2,992,990 8.9% 8.4% 7.8% Jobs 3,040,110 3,579,600 3,775,080 4,060,160 17.7% 5.5% 7.6% Notes (a)Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma Counties. Source:Association of Bay Area Governments(ABAG), Housing Element Data Profiles, December 2013. B-2 2 DRAfT Housing Element Technical Report Appendix B 2.4 Housing Stock Characteristics Housing Stock Conditions The age of the housing stock in Cupertino is similar to that of Santa Clara County. As shown in Table 2.7, the largest proportion of homes in the city (26.7 percent) was built between 1960 and 1969. In both Cupertino and Santa Clara County, 1972 is the median year housing structures were built. Typically, unless carefully maintained, older housing can create health, safety, and welfare problems for its occupants. Even with normal maintenance, dwellings over 40 years of age can deteriorate and require significant rehabilitation. However, while Cupertino's housing stock is older, most homes remain in relatively good condition, a testament to the relative wealth of the community and pride of home ownership. Data on the number of units which lack complete plumbing and kitchen facilities are often used to assess the condition of a jurisdiction's housing stock. As Table 2.8 indicates, virtually all housing units contain complete plumbing and kitchen facilities. The 2007-2011 ACS indicates that less than one percent of the units lack these facilities. To characterize the physical conditions of Cupertino's stock of older residential structures, a windshield survey was performed in 2009-2010 (inspecting exterior building components visible from the public right-of-way only). The windshield survey was conducted for the Rancho Rinconada residential neighborhood in the eastern part of Cupertino. This neighborhood, which is bordered by Lawrence Expressway, Bollinger Road, Miller Avenue, and Stevens Creek Boulevard, is one of the city's older neighborhoods, with many small, single-story homes built in the 1950s. The windshield survey reported on the exterior condition of the housing units in this neighborhood, including a DRAFT B-2 3 2040 GENERAL PLAN City of Cupertino review of each unit's foundation, roofing, siding and/or stucco, and windows. The survey concluded that over half of the several dozen homes surveyed had shingles missing from the roof, while nearly all had siding or stucco that needed to be patched and repainted. Many of the homes surveyed were characterized by a lack of maintenance, with overgrown yards or garbage and debris on the property. No significant changes in the market conditions have occurred since the survey in 2009-2010 to have impacted the housing conditions in this neighborhood. The City offers rehabilitation assistance to lower and moderate income households to make necessary repairs and improvements. The City also operates a Code Enforcement program that is primarily complaint/response driven. Between 2009 and 2014, Code Enforcement staff investigated over 1,200 code violations. During investigation of complaints, Code Enforcement officers assess the primary complaint as well as other visible code violations. Based on recent statistics on code enforcement activities, typical code violations in the City include dilapidated structures, trash and debris, hazardous vegetation, and exterior storage. Most violations are able to be resolved within a relatively short timeframe. Depending on the type of code violations, Code Enforcement officers would refer homeowners to the City's rehabilitation programs for assistance. Households are not displaced due to code enforcement activities unless there is a critical health and safety issue present. Since 2007, an estimated three residential units have been deemed unsafe due to health and safety issues. B-24 DRAFT Housing Element Technical Report Appendix B , � . . � . . . . • 1 . _. .��� �� � ro,��a .�,��.�. _ .. ._... ...�a�..�. ��_,�._...m usy � • r •� .r•� •'� .• ' Built 2000 to Later 1,638 7.8% 59,880 9.5% Built 1990 to 1999 2,520 12.0% 63,429 10.1% Built 1980 to 1989 2,920 13.9% 79,409 12.6% Built 1970 to 1979 4,374 20.8% 143,847 22.9% Built 1960 to 1969 5,619 26.7% 121,349 19.3% Built 1950 to 1959 3,216 15.3% 100,795 16.0% Built 1940 to 1949 539 2.6% 27,495 4.4% Built 1939 or earlier 232 1.1% 33,244 5.3% Total 21,058 100.0% 629,448 100.0% Median Year Built 1972 1972 Source:Association of Bay Area Governments(ABAG), Housing Element Data Profiles, December 2013. Distribution of Units by Structure Type As shown in Table 2.9, a majority of housing units in Cupertino are single-family detached homes. As of 2013, 57.3 percent of total units in the City of Cupertino were single-family detached dwelling units a decrease from the 61 percent recorded in 2000. As of 2013, the proportion of single-family homes in the City of Cupertino is still greater than Santa Clara County as a whole (54.1 percent) and the Bay Area as a whole at 53.6 percent. Large multi-family buildings (defined as units in structures containing five or more dwellings) represent the second largest housing category at 21.0 percent of the total number of units in Cupertino as of 2013. As of 2013, multi-family housing (5+ units) represented 25.5 percent of housing units in Santa Clara County and 25.1 percent in the Bay Area as a whole. DRAFT B-2 5 2040 GENERAL PLAN City of Cupertino • : : • • � • ' • 1 � � � �G�� � ! �� ! g�� S �ti,:�� .,.o �E'rC�,.,c�!,., ..m..oy ��M�w'`.�i,:,�'�y,��M��,� ,, ry�,.�� . .� ..��� � v,h„ „r . . ,�',������,::�..t d�.�u�WV��:�iai �I,.���� ,,,������.. Plumbing Facilities Owners Complete Plumbing Facilities 12,900 63.9% Lacking Complete Plumbing Facilities 61 0.3% Renters Complete Plumbing Facilities 7,215 35.8% Lacking Complete Plumbing Facilities 0 0.0% Total 20,176 100.0% Kitchen Facilities Owners Complete Kitchen Facilities 12,923 64.1% Lacking Complete Kitchen Facilities 38 0.2% Renters Complete Kitchen Facilities 7,132 35.3% Lacking Complete Kitchen Facilities 83 0.4% Total 20,176 100.0% Source:Association of Bay Area Governments(ABAG), Housing Element Data Profiles, December 2013. Single-family attached homes comprised the third largesthousing category in Cupertino, at 12.2 percent in 2013. By comparison, these homes made up 9.7 percent of the housing stock in all of Santa Clara County and 9.2 percent in the Bay Area as a whole. As of 2013, small multi-family homes (defined as units in structures containing 2 to 4 dwellings) represented 9.5 percent in the City of Cupertino, 7.7 percent in Santa Clara County and 9.9 percent in the Bay Area as a whole. B-2 6 DRAFT Housing Element Technical Report Appendix B � ' • ' 111 1 111 ■ M't s • � s • • • _ a • � t ., �u; � r ; s a � tl� SA,�. . �:PP �v„ tt� i� .� a� Y�'N r rz t �� rv �a,,dn �a " �..���d`��+.r.a . ., +'� .. ,. ,_„ . �x���, ..�,.�,e �.,a';.,�„AbhR� ��k�$, '���;���a+t...,1•+�s°r�,�.,,a�;'�� .���!nc��'�„1.J � . �.�,. ,,.,� ,� a_ � s�nw n.,_��.e��n�pµ,�,.,: . x....�a, ,,,. . City of Cupertino Single Family Detached 11,425 61.1% 12,056 57.3% 5.5% Single Family Attached 2,028 10.8% 2,561 12.2% 26.3% Multi-family 2-4 units 1,663 8.9% 2,002 9.5% 20.4% Multi-family 5+ units 3,576 19.1% 4,422 21.0% 23.7% Mobile Homes 9 0.0% 0 0.0% -100.0% Total 18,701 100.0% 21,041 100.0% 12.5% Santa Clara County Single Family Detached 323,913 55.9% 346,145 54.1% 6.9% Single Family Attached 52,739 9.1% 62,201 9.7% 17.9% Multi-family 2-4 units 46,371 8.0% 48,923 7.7% 5.5% Multi-family 5+ units 136,628 23.6% 163,124 25.5% 19.4% Mobile Homes 19,678 3.4% 19,053 3.0% -3.2% Total 579,329 100.0% 639,446 100.0% 10.4% Bay Area Single Family Detached 1,376,861 53.9% 1,505,153 53.6% 9.3% Single Family Attached 224,824 8.8% 258,633 9.2% 15.0% Multi-family 2-4 units 266,320 10.4% 278,450 9.9% 4.6% Multi-family 5+ units 623,388 24.4% 705,899 25.1% 13.2% Mobile Homes 61,011 2.4% 59,673 2.1% -2.2% Total 2,552,404 100.0% 2,807,808 100.0% 10.0% Source:Association of Bay Area Governments(ABAG), Housing Element Data Profiles, December 2013. DRAFT B-27 2040 GENERAL PLAN City of Cupertino Overcrowding Overcrowding refers to a household with an average of more than one person per room (including bedrooms and dining rooms but not kitchens or bathrooms). Units with more than 1.5 persons per room are considered to be severely overcrowded. As shown in Table 2.10, as of 2011 the total percentage of overcrowding by tenure represented 5.2 percent for Cupertino households, which is slightly lower compared to 7.2 percent in Santa Clara County. Overcrowding was much more common in Cupertino's renter-occupied households, with 10.7 percent of these households considered to be overcrowded. By comparison, only 2.2 percent of owner-occupied households in the city were overcrowded. In Santa Clara County, 3.4 percent of owner-occupied households experienced overcrowding versus 12.5 percent of renter-households. Overcrowding conditions in Cupertino approximate regional averages, with a slightly higher level of overcrowding among renter- households than in the region. 2.5 Market Conditions & Income Related to Housing Costs This section of the Needs Assessment provides information on market conditions for housing in Cupertino. This information is important because it reveals the extent to which the private housing market is providing for the needs of various economic segments of the local population. Available data on housing market conditions are combined with information on the demographics of the local population to identify those segments of the population that may face difficulties in securing affordable housing in Cupertino. B-2 8 DRAFT Housing Element Technical Report Appendix B • - f • ' • � � • • � 1 � ,� � ��, ,, � .,� �� � � � ;�"'�,' �. s= .a k . � :�� .,;�.��a �'° � + � �� � ��,': �",." �� �'1�����d9'J'�r'�f V���uf w e, * �� � ' i I• • • R • � � ��,�<<, ��°a�•=dac,a,a�;� ",° b°�$�x�B�� •. Cupertino 1.51 or more persons per room 39 0.3% 73 1.0% 112 0.6% (Severely Overcrowded) 1.01 to 1.50(Overcrowded) 246 1.9% 700 9.7% 946 4.7% 1.00 or Less 12,676 97.8% 6,442 89.3% 19,118 94.8% Tota) 12,961 100.0% 7,215 100.0% 20,176 100.0% % Overcrowded by Tenure 2.2% 10.7% 5.2% Santa Clara County _ 1.51 or more persons per room 2,755 0.8% 11,799 4.8% 14,554 2.4% (Severely Overcrowded) 1.01 to 1.50(Overcrowded) 9,136 2.6% 19,213 7.8% 28,349 4.7% 1.00 or Less 340,006 96.6% 216,743 87.5% 556,749 92.8% Total 351,897 100.0% 247,755 100.0% 599,652 100.0% % Overcrowded by Tenure 3.4% 12.5% 7.2% ABAG Region 1.51 or more persons per room 9,620 0.7% 40,161 3.6% 49,781 1.9% (Severely Overcrowded) 1.01 to 1.50(Overcrowded) 32,632 2.2% 63,188 5.7% 95,820 3.7% 1.00 or Less 1,434,779 97.1% 997,100 90.6% 2,431,879 94.4% Total 1,477,031 100.0% 1,100,449 100.0% 2,577,480 100.0% % Overcrowded by Tenure 2.9% 9.4% 5.6% Notes: (a)State HCD defines an overcrowded unit as one occupied by 1.01 persons or more(excluding bathrooms and kitchen). Units with more than 1.5 persons (b�er room are considered severely overcrowded. The 2010 Census does not contain detailed data on household conditions. Overcrowding data in this table are based on the American Community Survey(ACS), which is comprised of a series of small surveys forjurisdictions taken at different intervals based on population size. The 2000 Census overcrowding data were developed based on the 100 percent survey. Therefore, the significant changes between the 2000 Census and ACS may due in part to actual changes in overcrowding conditions,and in part to different survey methodologies. Sources: U.S. Census,American Community Survey(ACS),2007-2011. DRAFT B-29 2040 GENERAL PLAN City of Cupertino Rental Market Characteristics and Trends A review of rental market conditions in Cupertino was conducted for this Housing Element by reviewing advertised apartment listings. As shown in Table 2.11, a total of 170 units were listed, the majority of which were one- and two-bedroom units. The survey found that market- rate rents averaged: ■ $1,608 per month for studio units ■ $2,237 per month for one-bedroom units ■ $2,886 per month for two-bedroom units ■ $3,652 per month for three-bedroom units Rental prices in Cupertino ranged from $1,400 for a studio unit to $5,895 for a five-bedroom unit. As can be expected, smaller units are more affordable than larger units. The overall median rental price for all unit sizes was $2,830, and the average price was $2,919. , � � , � , . . � � , °&��p����,s�����M'�'��".,. ������'@",q . .., i:.., �� � ,,g�}�'��A µ;B'WC 4��i,!j c �,.���; f �y+l'9"I��i � ylUl�'a0r J—r(�r.6��6��4� ,� .��`. ���1tti�paafi'I � Y I!'� �, �I III�illlI�yul � � C d w�^ 6 1 '� ai I�, � �s � r a trk ,�.�.e > �I�i . �vi`��,r,r�n ^c�''���.,I�� ��� ' �,,,,, y �.i.,i��r: I'G G', ���� ���a..� ";,�I 'iV�'lf'�" �'�� �11 ' ,,.• I�I N� wu a � ° '* � Studio 5 $1,559 $1,608 $1,400-$1,800 One-Bedroom 44 $2,274 $2,237 $1,845-$2,567 Two-Bedroom 80 $2,844 $2,886 $1,950-$3,820 Three-Bedroom 33 $3,500 $3,652 $2,600-$4,595 Four-Bedroom 6 $4,999 $4,683 $3,700-$5,300 Five-Bedroom 2 $5,198 $5,198 $4,500-$5,895 Total 170 $2,830 $2,919 $1,400-$5,895 Note: (a)Search performed on Craigslist.org and Zillow.com of listings dated February 12 to March 7,2014. Sources:Craigslist.org, 2014; Zillow.com,2014. B-3 0 DRAFT Housing Element Technical Report Appendix B Home Sale Trends While other areas of the state and nation have experienced downturns in the housing market recently, Cupertino home values have continued to grow. During the depth of the housing market crash (between 2008 and 2010), median home price in Cupertino held steady at around $1,000,000. Since 2011, home prices in Cupertino have increased substantially. According to DQNews, the median sales price for single-family residences and condos increased by 28.6 percent from $933,000 in 2011 to $1,200,000 in 2013. As shown in Table 2.12, this increase was one of the highest in the region. Median home prices in Santa Clara County as a whole increased even more dramatically (by 36.5 percent) during the same time period. Figure B-1 shows that the City of Cupertino had the second highest median home sales price in the region during 2013 at $1,200,000, behind only the City of Saratoga at $1,600,000. The 2013 median home sales price of $1,200,000 in Cupertino was also nearly double that of the County median price ($645,000). Most recent sales data reported by DQNews.com compare sales records in the month of March 2014 with those in March 2013. Prices in Santa Clara County experienced a 15 percent increase over that one-year period, while Milpitas and Cupertino registered the largest increases in the County at 36 percent and 31 percent, respectively. Throughout 2014, Cupertino's median home sale price has continued on this upward trend—as of June 2014, the median single-family home price in Cupertino was $1,550,000 and a townhome/condominium was selling for $822,500. While home prices in the city steadily increased, the number of homes being sold declined slightly between 2012 and 2013, from 530 units to 512 units (Figure A-B). Neighboring jurisdictions also experienced similar declines in sales volume, with the largest decrease occurring in �RAFT B-3 1 2040 GENERAL PLAN City of Cupertino • • • � � • � ' ' 1 1 I i`i rl��III� i� d� ,,.�r m,�`� ��fl��"Y�p�4��a'��Sa"'�� htl �d art�,M,' i a"MtQ�n..,x� P iye � irc � w , I�� ��I �I� ��� �'�' s��r�'�r ���Pr�� ��t a,�� i u�r'»�'�f��'��q`��I�t��� ��„„ , ��°i��°�'��f�,'4�,����il��6�� II I ,II� : �� :� �,� ,�� � � " ' °I�I I� .�� �� ��' �� ' � . � : t � � � Campbell $569,000 $625,000 $701,000 9.8% 12.2% 23.2% Cupertino $933,000 $1,045,750 $1,200,000 12.1% 14.8% 28.6% Mountain $678,500 $769,250 $800,000 13.4% 4.0% 17.9% View Santa Clara $500,000 $540,000 $635,000 8.0% 17.6% 27.0% Saratoga $1,377,500 $1,527,500 $1,600,000 10.9% 4.7% 16.2% Sunnyvale $570,000 $645,000 $767,500 13.2% 19.0% 34.6% Santa Clara $472,500 $525,000 $645,000 11.1% 22.9% 36.5% County Source:DQNews.com,2014. Figure B-1 Annual Median Home Sale Price, 2013 $1,600,000 $1,400,000 $1,200,000 $1,000,000 Santa Clara County:$645,000 $800,000 $1,600,000 �� $600,000 —� $1,200,000 ��� � $400,000 $�01,000 $$00,000 $767,500 �,�,,,, $635,000 $200,000 — — $0 — ---,— -�-- _—�- ' Carrpbell Cupertino Mountain Santa Clara Saratoga Sunnyvale B-3 2 DRAFT Housing Element Technical Report Appendix B Mountain View. Overall, the number of units sold in the County decreased slightly from 20,940 units in 2012 to 20,700 units in 2013, according to DQNews.com. Vacancy Rates and Trends The 2010 Census data as reported in ABAG's Housing Element Data Profiles indicate an overall vacancy rate of 4.0 percent in the City, which was slightly lower than the Santa Clara County vacancy rate of 4.4 percent (see Table 2.13). Specifically, Cupertino's rental vacancy rate was reported at 4.7 percent, compared to a vacancy rate of less than one percent (0.8 percent) for ownership housing. While the rental vacancy rate increased notably from the 1.8 percent reported by the 2000 Census, the homeowner vacancy rate stayed essentially the same. Despite the increase, the local vacancy rates were still below optimum. Typically, industry standards consider a rental vacancy rate of five to six percent and a vacancy rate for ownership housing of one to two percent to be adequate to facilitate mobility. Housing Affordability According to the federal government, housing is considered "affordable" if it costs no more than 30 percent of a household`s gross income. Often, afFordable housing is discussed in the context of affordability to households with different income levels. Households are categorized as extremely low income, very low income, low income, median income, moderate income, or above moderate income based on percentages of the AMI established annually by the California Department of Housing and Community Development. Income limits also vary by household size. Table 2.14 provides the maximum income limits for a four-person household in Santa Clara County in 2014. Extremely low-, very low- and low-income households are eligible for federal, state, and local affordable housing programs. Moderate-income households are eligible for DRAFT B-33 2040 GENERAL PLAN City of Cupertino some state and local housing programs. These income categories are also used by ABAG in the Regional Housing Needs Allocation, or RHNA, process. In Cupertino, the BMR Ordinance establishes an additional income range: median income (81 -100 percent of AMI). Another way to think of the household income categories is to consider what types of jobs people in these different categories might have. Figure B-3 provides representative households in Santa Clara County, along with hypothetical jobs and family compositions. Ability to Purchase/Rent Homes by Household Income Table 2.15 shows affordability scenarios by income and household size for Santa Clara County. The following analysis compares the maximum affordable housing costs for various households to the rental survey and median Figure B-2 Home Sales Volume, 2012 - 2013 1,500 a,..,...,,. 1,000 — — 500 _— — — — _ __ — _ _ _ __ — -. �/lountain Campbell Cupertino View Santa Clara Saratoga Sunnyvale �2012 555 530 849 1,176 480 1,208 �2013 554 512 759 1,214 448 1,326 B-3 4 DRAFT Housing Element Technical Report Appendix B . - � � - . , � . . . 1 � ��� � „na,. � �� , �.� �� M.� � � ��, � ��vb < x �� ";°,'� �i'-�,�„� ;w�ab,�w;s ,s:�:.,�*,�""�eam�re .���,�mv� � � �.�> �bl"9;'�i� Y ki t qri�� ° ,?�^a� 'w,`. d�:�P�, :§«} � '�a"...,` � ' pw ".�� .,.�r�.m �,�� ��� g I��iiini;ill d�Illnti,tlP of' `�IIIW�I�IIYI YD IY YII�II�'�il`i�I� ��� � •. � �_ � •� • �'�IYWI� •' • Occupied 20,181 96.0% 604,204 95.6% 12,577,498 91.9% Housing Units Vacant 846 4.0% 27,716 4.4% 1,102,583 8.1% For Rent 373 1.8% 11,519 1.8% 374,610 2.7% For Sale Only 108 0.5% 5,067 0.8% 154,775 1.1% Rented Or Sold, �6 0.4% 2,222 0.4% 54,635 0.4% Not Occupied For Seasonal, Recreational, or 125 0.6% 3,000 0.5% 302,815 2.2% Occasional Use For Migrant 3 0.0% 50 0.0% 2,100 0.0% Workers Other Vacant (a) 161 0.8% 5,858 0.9% 213,648 1.6% Total 21,027 100.0% 631,920 100.0% 13,680,081 100.0% Homeowner 0.8% 1.4% 2.1% Vacancy Rate Rental Vacancy 4.7% 4.3% 6.3% Rate Notes: (a)If a vacant unit does not fall into any of the classifications specified above, it is classified as "other vacant."For example, this category includes units held for occupancy by a caretaker or janitor, and units held by the owner for personal reasons. Source:Association of Bay Area Governments(ABAG), Housing Element Data Profiles, December 2013. DRAFT B-3 5 2040 GENERAL PLAN City of Cupertino home sales price data for Cupertino shown earlier. The maximum affordable sales price was calculated using household income limits published by the California Department of Housing and Community Development, conventional financing terms, and assuming that households spend 30-35 percent of gross income on mortgage payments, taxes, and insurance. When comparing the home prices and rents shown earlier in Table 2.11 and Table 2.12 with the maximum affordable housing costs presented in Table 2.15, it is evident that extremely low- and very low-income households in Cupertino have no affordable housing options. For example, a four-person very low income household could afford $1,084 a month for rent, but the average rent for a two-bedroom unit was $2,886, more than double what this household could afford. Even for low- and moderate- income households, adequately sized and affordable rental housing options are very limited. A four-person moderate income household could afFord $2,928 monthly for rent, barely above the average rent of a two-bedroom unit. Homeownership is generally beyond the reach of most lower- and moderate-income households. . - , • • � • . . . - . � � . AF��A Y 1�i' � �,fe�d�x,�.a A .:'_���. � 4Y• bN A •: � .,��"� �d^�. . . WN Extremely Low Income 0% to 30% $31,850 Very Low Income 31%to 50% $53,050 Low Income 51%to 80% $84,900 Moderate Income 81%to 120% $126,600 Santa Clara Median Income 100% $105,500 Notes: (a)Based on HCD 2014 Household Income Limits for households of four persons in Santa Clara County. Source:California Department of Housing and Community Development, 2014. B-36 DRAFT Housing Element Technical Report Appendix B Figure B-3 Representative Households, Santa Clara County, 2014 Moderate Income Household(80%—120%AMI) * • Estimated Annual Income: � � $84,900-$126,000 Dad works as a paralegal,mom works as a home health aide;they have two children. Low Income Household(50%—80%AMI) * ` Estimated Annual Income: � � $53,050-$84,900 Dad works as a security guard,mom works as a teaching assistant;they have two children. Very Low Income Household(Up to 50%AMI) , , Estimated Annual Income: � � Up to$42,050 Mom works as a file clerk and is the only source of financial support in her family; she has one child. Sources:California Employment and Development Department,2014;and California Department of Housing and Community Development,2014. As shown in Table 2.15, a four-person moderate income household could afford a home of approximately $625,800, just about half the price of a median-priced home in Cupertino. To augment this analysis, the household incomes of select occupations were analyzed to evaluate these workers' ability to rent or purchase homes in Cupertino. Figure B-4 shows the average annual wages for a range of occupations in Santa Clara County, based on 2013 State Employment Development Department occupational employment and wage data. In general, low-paying occupations in the health care support and food preparation industries do not pay salaries high enough to allow their workers to afford housing in Cupertino. In addition, while those employed in higher-paying occupations may earn more, they may still have difficulty purchasing an adequately sized home. DRAFT B-�� 2040 GENERAL PLAN City of Cupertino • • • • ' � � : • • • • • • • 1 • I �il UII���y�11V � � I I�!I li A � •��.,e � m w � �� �� ��. ' p' �; �'r�.�� : �'���. ♦ * � �m + •s � �� � � � S � k �u�al�`.', �,. 'a�.a ����$��"�a�"�����a�3�,�,;,a:. Extremely Low Income (0-30%AMI) 1-Person $22,300 $558 $558 $137 $149 $195 $421 $41,840 2-Person $25,500 $638 $638 $160 $173 $223 $478 $47,330 3-Person $28,650 $716 $716 $182 $198 $251 $534 $52,465 4 Person $31,850 $796 $796 $242 $265 $279 $554 $49,524 5 Person $34,400 $860 $860 $290 $316 $301 $570 $47,649 Very Low Income (31-50%AMI) 1-Person $37,150 $929 $929 $137 $149 $325 $792 $89,158 2-Person $42,450 $1,061 $1,061 $160 $173 $371 $901 $101,340 3-Person $47,750 $1,194 $1,194 $182 $198 $418 $1,012 $113,325 4 Person $53,050 $1,326 $1,326 $242 $265 $464 $1,084 $117,076 5 Person $57,300 $1,433 $1,433 $290 $316 $501 1,143 $120,617 Low Income (51-80%AMI) 1-Person $59,400 $1,108 $1,292 $137 $149 $452 $973 $135,504 2-Person $67,900 $1,266 $1,477 $160 $173 $517 $1,106 $154,329 3-Person $76,400 $1,424 $1,662 $182 $198 $582 $1,242 $172,959 4 Person $84,900 $1,583 $1,846 $242 $265 $646 $1,341 $183,353 5 Person $91,650 $1,709 $1,994 $290 $316 $698 $1,419 $192,177 Median Income (81-100%AMI) 1-Person $73,850 $1,662 $1,939 $137 $149 $678 $1,525 $217,864 2-Person $84,400 $1,899 $2,216 $160 $173 $775 $1,739 $248,456 3-Person $94,950 $2,136 $2,492 $182 $198 $872 $1,954 $278,851 4 Person $105,500 $2,374 $2,769 $242 $265 $969 $2,132 $301,010 5 Person $113,950 $2,564 $2,991 $290 $316 $1,047 $2,274 $319,248 Moderate Income (101-120%AMI) 1-Person $88,600 $2,031 $2,369 $137 $149 $829 $1,894 $272,771 2-Person $101,300 $2,321 $2,708 $160 $173 $948 $2,161 $311,206 3-Person $113,950 $2,611 $3,046 $182 $198 $1,066 $2,429 $349,445 4 Person $126,600 $2,901 $3,385 $242 $265 $1,185 $2,659 $379,449 5 Person $136,750 $3,133 $3,656 $290 $316 $1,279 $2,843 $403,961 Notes: (a)This table is intended for general information purposes only.Any proposed BMR unit initial sales prices shall be determined by the City based on Health and Safety Code requirements and available interest rates/conditions at the time of sale. (b)Assumptions for rental scenarios:2014 HCD income limits;affordable housing costs pursuant to California Health&Safety Code Section 50053(b)(1)(2)(3)(4);utilities based on Housing Authority of Santa Clara 2013 County Utility Allowance(c)Assumptions for ownership scenarios:2014 HCD income limits;affordable housing costs pursuant to California Health&Safety Code Section 50052.5(b)(1)(2)(3)(4);35%of monthly afFordable cost for taxes, insurance, monthly mortgage insurance and HOA dues;5% downpayment, 5%interest rate;conventional 30 year fixed rate mortgage loan;utilities based on Housing Authority of Santa Clara 2013 County Utility Allowance.Sources:California Department of Housing and Community Development,2014;California Health&Safety Code,2014;Housing Authority of the County of Santa Clara,2013;Veronica Tam and Associates,2014. B-3 8 DRAFT Housing Element Technical Report Appendix B Overpayment (Cost Burden) According to Department of Housing and Urban Development (HUD) standards, a household is considered to be "cost-burdened" (i.e. overpaying for housing) if it spends more than 30 percent of gross income on housing- related costs. Households are "severely cost burdened" if they pay more than 50 percent of their income on housing cost. According to special data developed by the ACS for HUD, approximately 30 percent of renters and 37 percent of homeowners in Cupertino were overpaying for housing in 2010. By contrast, overpayment was much more common in Santa Clara County as a whole, with 42 percent of renters and 39 percent of homeowners classified as cost-burdened in 2010. Housing cost burden was particularly pronounced for extremely low- and very low-income households in Cupertino. In 2010, 51 percent of Cupertino's extremely low-income renters and 37 percent of its very low-income renters were severely cost burdened. This finding is consistent with the analysis of the local housing market, which revealed a significant gap between home prices and rents and the income of lower income households. Figure B-4 Income Needed to Afford Housing Compared with Income $300,000 Income Needed to Buy a Home ($299,555) $250,000 $200,000 $152,925 $150,000 �"' ,: `' �106,995 Income Needed to Rent an Apt. $100,000 ($135,840) �5`���`� $55,000 $54,296 $50,000 --- -- `-- __ �36.000 ___ �,,'� — $23,795 �� ���" $0 " ` __ Management Engineering Education Protective Sales Healthcare Food Prep Services Support DRAFT B-39 2040 GENERAL PLAN City of Cupertino • : . • • : � � � • • � • • • • 1 1 � ��I,I IV��'''' �„�� � � ���,��� � ��� � � � S 'I r - +� s �r ' �+ � m �y�� ` � I�i I� , ... ...,.. . . ,; � � � �, �s, �, . •� • • •' • ' � ��F i ' • • .• • rM� T • •• .. 1 „„ ,., � , �.� . < ��,.., o.�_ q'„�:.i,.,. ^" .. , �,sd ,.,R+ ,.,�.�::.,.!�� �'�.�a�w. ,a.,..,:;,., ,.,F�r a ,�...;�w,. �.,�C.;: .. .., .. .,� L, .�����°iu,�.,.,,,�.. ,w. ...,,Wlud;.. ..... �, ,nm�,��. \...�. Extremely Low 300 310 10 820 370 10 665 1,485 (0-30%) With any housing 61.7% 69.4% 100.0% 64.6% 55.4% 100.0% 61.7% 63.3% problem With cost burden 61.7% 69.4% 100.0% 64.6% 55.4% 100.0% 61.7% 63.3% >30% With cost burden 45.0% 62.9% 100.0% 56.1% 27.0% 100.0% 44.4% 50.8% >50% Very Low (31- �5 300 25 485 555 40 835 1,320 50%) With any housing 100.0% 70.0% 100.0% 81.4% 35.1% 100.0% 44.9% 58.3% problem With cost burden 100.0% 70.0% 40.0% 79.4% 36.0% 100.0% 45.5% 58.0% >30% With cost burden 60.0% 30.0% 40.0% 43.3% 27.9% 100.0% 32.9% 36.7% >50% Low(51-80%) 55 150 55 450 500 30 810 1,260 With any housing 100.0% 76.7% 100.0% 76.7% 31.0% 0.0% 45.7% 56.7% problem With cost burden 100.0% 66.7% 90.9% 72.2% 31.0% 0.0% 42.6% 53.2% >30/o With cost burden 100.0% 43.3% 72.7% 46.7% 21.0% 0.0% 30.2% 36.1% >50% Moderate/Above 265 3,515 385 5,170 1,990 1,025 10,345 15,515 Moderate (>80%) With any housing 47.2% 24.9% 66.2% 28.7% 22.9% 40.0% 35.5% 33.3% problem With cost burden 47.2% 12.8% 0.0% 15.6% 21.4% 33.2% 33.7% 27.7% >30% With cost burden 11.3% 0.0% 0.0% 0.6% 7.0% 2.4% 7.5% 5.2% >50% Total Households 695 4,275 475 6,925 3,415 1,105 12,655 19,580 With any housing 63.3% 33.1% 72.6% 39.8% 29.6% 41.6% 38.2% 38.7% problem With cost burden 63.3% 22.8% 14.7% 29.5% 28.8% 35.3% 36.5% 34.0% >30% With cost burden 38.1% 8.2% 12.6% 13.1% 14.6% 6.8% 12.6% 12.8% >50% Notes: (a)Data presented in this table are based on special tabulations from 2006-2010 American Community Survey(ACS)data. Due to the small sample size, the margins for error can be significant. Interpretations of these data should focus on the proportion of households in need of assistance rather than on precise numbers. Source:HUD Comprehensive Housing AfFordability Strategy(CHAS), based on the 2006-2010 ACS. B-40 DRAFT Housing Element Technical Report Appendix B 2.6. Assisted Housing at Risk of Conversion State law requires local housing elements to include an inventory of affordable housing developments that could be at risk of conversion to market rates during the 10-year period that follows the adoption of the element. For those Inventory of Existing Affordable Units Table 2.17 presents the inventory of afFordable housing units in Cupertino and indicates the earliest dates of termination of affordability restrictions for each project. In 2011, the 10 below market rate (BMR) units in the Chateau Cupertino development expired. However, the City is committed to maintaining the long-term afFordability of current BMR units. As such, in 2005 the City increased the minimum affordability term for BMR units in new developments to 99 years. Since 2010, 17 new units at the Markham Apartments have been added to the BMR inventory. Units at Risk of Conversion During Next Ten Years The affordable housing developments at risk of conversion to market rate during the next 10 years include those units whose affordability restrictions are set to expire January 31, 2025 or earlier. As presented in Table 2.17, the affordability restrictions for the eight-unit Beardon Drive project will expire in December 2024. In addition, certain affordability restrictions for Le Beaulieu Apartments are also set to expire during the next 10 years. Cupertino Community Housing originally developed Le Beaulieu in 1984 and utilized HUD project-based Section 8 assistance. Mid-Peninsula Housing Coalition, a nonprofit organization, acquired and rehabilitated the project in 1998. Le Beaulieu contains 27 one- and two-bedroom units for adults with physical disabilities who are able to live independently. All units are handicap accessible and affordable to very low-income households (less than 50 percent of AMI). DRAFT B-41 2040 GENERAL PLAN City of Cupertino • • ! 9! � I�i� ��'��, ;� n 9��"��'r�!'11; ,.�,� �"� ��� I� �� ���q�i� � , �. � �, II I ��€ ,, � , r�„ ; u�'��dpl�' ',. � , I �I; I I I s- � �° � �s.o<. ,>,a, , � . . . .�;,,,,�, �,�, �, ,, ,,,,�, � �� ,:...;.,.; rr ,�,,,. ,�.,,„ ., : ,,, • . • • a M ,_w _ I '��I�n i w'�i��"�JG y r 'I'�M'��''^"k'� � I w;� � ��.. � i *•' �. � Affordable Developments Sunny View West 22449 100 100 0 H U D 202/811 3/31/2031 Cupertino Rd. Stevens Creek Village 40 40 0 CHFA, HUD & b/30/2035 19140 Stevens HOME Creek Blvd. Le Beaulieu Apartments 2035 27 27 0 CaIFHA/CDBG 10092 Bianchi 9/12/2015 Way WVCS Transitional Housing 4 4 0 CDBG 7/14/2026 10311-10321 Greenwood Ct. Beardon Drive 10192-10194 8 8 0 CDBG 12/21/2024 Beardon Dr. Senior Housing Solutions 1 1 0 CDBG 6/242066 19935 Price Avenue Maitri Transitional Housing 4 4 0 CDBG 3/16/2064 Undisclosed Location Total 184 184 0 B-4 2 DRAFT Housing Element Technical Report Appendix B � • • � • � � • w,�^,�^a^ �. �ri��,yi"w"?&�,it��n{ � .P��., �F..o ;�h�°�"�, �fi x�q�n area�ns�r�py�P�X�"ro�j"',�,`�" °"� � �� �`�' e, �A�:.�"�,,"����2 "�,� aM�'�d�s� ,��,�,i4�.�,. �„ ,w r� °.,"h°,�: `„{�"`H wa� a�"'�'k� 9�x�������y p1r�a��8��3�'> a 9c °�,� �.�„�.:,. ay ¢J, � �j�I il� �I ��I ��� li�l �!�I����8'I1y41 j�'��r rt�l��'�n�s�p.� +✓p�'•`tFfig'�'��r�nc�r�,��t"'}��"� ��a�'m� "w,.�1�4 • �9ld99h Is RV1� '�� ���n�ii��� I! 1 �I�� YfVI ' �V d� �� � �K r h�"���,�\ 1 )ty�g� ���' �'W��� I�� I I�; � �I I I V� � '� . � �� � ���'�� � � e,`�v�v��{ � � Y I ,+' �I.i i� �k o�� �1� �d'�"•. . *,�,R, �,: "� • �%wfi�!���W l�l����faC�71E,�y i���> �4v����� Y ���' a i �.i � r � � , ���u� �,�, �i� ?W : li • NI �� . � ,����,hw . i',. . `�..�.,,., . .�a� ��h�.& . � r. +„�•`rrr .,,,aa`: �•,a.�MR�<,�?t� "'°.�.� ., .... .,s,.,� . _ . , . . , ... ,. . „ � , ., � ,.�, ,,,.a,, . . Affordable Developments Biltmore Apartments 10159 South 2 2 0 BMR 6/30/2029 Blaney Ave. Park Center Apartments 4 4 0 B M R 7/8/2026 20380 Stevens Creek Blvd. The Hamptons 19500 34 34 0 B M R 10/20/2027 Pruneridge Ave. Arioso Apartments 20 ZO 0 BMR 1/29/2028 19608 Pruneridge Ave. Forge- Homestead Apartments 15 15 0 BMR 1/16/2027 20691 Forge Way Aviare Apartments 20 20 0 BMR 7/8/2026 20415 Via Paviso The Markham Apartments 20800 17 17 0 B M R 2039 Homestead Road Lake Biltmore 19500 2 2 0 B M R 2029 Pruneridge Ave. Vista Village 101144 Vista 24 24 0 BMR 11/29/2056 Drive Total 138 138 0 Below Market Rate (BMR) For-Sale Units Total (a) 122 0 122 BMR Notes: (a)Property addresses of BMR units are not listed in order to protect the privacy of homeowners. Source:City of Cupertino,2014. DRAFT B-4 3 2040 GENERAL PLAN City of Cupertino The Le Beaulieu development is not considered to be at risk of converting to market rate because there are other funding sources tied to the property such as the City's CDBG (30-year agreement) and CaIHFA loan agreement. In addition, Mid-Peninsula Housing Coalition is committed to maintaining the property as afFordable. Discussions with Mid-Peninsula Housing Coalition stafF in early 2014 confirmed the organization is in the process of applying for a 20-year extension of the Section 8 contract. Renewal of Section 8 funding for senior and disabled housing has been prioritized by HUD and Mid-Peninsula Housing fully expects to be able to extend the Section 8 assistance. Furthermore, other afFordability covenants on the project would require the project to remain as affordable housing well beyond this Housing Element planning period. One property has been identified with expiring affordability restriction during this planning period — the Beardon Drive development. In 1994, Community Housing Developers Inc., a nonprofit housing provider, received a loan from the City's CDBG program for the acquisition of the Beardon Drive property. The loan agreement restricts the eight units for very low-income use for 30 years. As such, income restriction for this project would expire in 2024. As Beardon Drive is owned by a nonprofit housing provider, it is considered to be at low risk of converting to market-rate housing. Nevertheless, for the purpose of this Housing Element, options and costs to preserve these units are discussed below. Preservation and Replacement Options Typically, transferring the at-risk projects to nonprofit ownership would ensure the long-term affordability of the units. However, the Beardon Drive project is already owned by a nonprofit organization. Beardon Drive does not rely on ongoing rent subsidies (such as Section 8) to maintain affordable rents. A strategy to preserving this project as B-4 4 DRAFT Housing Element Technical Report Appendix B affordable housing is to ensure the financial status of the project (i.e., net operating income and reserve) is adequate to maintain the afFordable rents. The City has included a strategy in the Housing Plan to provide rehabilitation assistance to affordable housing projects to upkeep the housing quality standards and to reduce ongoing maintenance and operating expenses. The City may also choose to extend the loan repayment schedule in exchange for an extended affordability covenant. Another strategy is to provide ongoing rental subsidies to the project. The estimated total amount needed to subsidize rents for existing tenants is shown in. Given the unit mix of all eight at-risk units, the total cost of subsidizing the rents for these units is estimated at $61,152 annually. For a 10-year afFordability covenant, a total subsidy of more than $600,000 would be needed. Construction of Replacement Units In the unlikely event that Community Housing Developers, Inc. chooses to convert Beardon Drive from an affordable housing project to market-rate housing, the construction of new affordable housing units as a means of replacing the currently at-risk units may be an option for Cupertino. The cost of developing housing depends upon a variety of factors including the density and size of the units (i.e. square footage and number of bedrooms), location, land costs, and type of construction. Based on general assumptions for average construction costs, it would cost approximately $940,000 to construct eight affordable replacement units, excluding land costs and other soft costs (such as architecture and engineering). When considering these additional costs, especially given the high cost of land in Cupertino, the total costs to develop replacement units would be significantly higher. DRAFT B-45 2040 GENERAL PLAN City of Cupertino � : : ' � : � ' • � • � - w- � - � . � • • s_. . ::- . • . • ' R . � . � • :,,::x,��,,•.,�;.;,� ;� . - . . . • . Very Low Income (50%AMI) 2-Bedroom/3- g $1,649 $47,750 $1,012 $637 $5,096.00 person household Total Annual $61,152 Subsidy Notes: (a)Fair Market Rent(FMR)is determined by HUD. These calculations use the 2014 HUD FMR for Santa Clara County. (b)Rents are restricted to 50%AMI for this development, which puts residents in the Very Low Income Category,set by the California Department of Housing and Community Development(HCD),2014. (c)The affordable housing cost is calculated based on 30%of the AMI,minus utilities for rentals. (d)The monthly subsidy covers the gap between the FMR and the affordable housing cost Source:Veronica Tam and Associates,2014. • : • � � • ' � • � � � * . ��{k�il�� � I� ... ��6WI i� ��.4'I'I II��� .� I�IWiI�kly �Y����Y I�I�� � (4{IIW�U W,y�� 9 . I � . - I. � � .�•' �� !Y � � �� . • r r � ^� ` • 2 Bedroom 8 807 7,747 $941,963 Av�rage Per Unit Cost: $117,745 Notes: C)_(A)x(B)x 1.20(i.e. 20%inflation to account for hallways and other common areas). (D)_(C) x$97.27(per square foot construction costs)x 1.25(i.e. 25%inflation to account for parking and IandscaPing costs).Source:Veronica Tam and Associates,2014 Financial Resources Available to the City to Assist in Preservation Clearly, the costs of preserving or replacing affordable housing units are substantial. In light of this challenge, the City must consider what resources are available to help preserve or replace those units so that lower-income tenants are not displaced in the event that affordable units convert to market rate. The City has access to a range of different funds that could potentially assist in a preservation effort, including: B-4 6 DRAFT Housing Element Technical Report Appendix B ■ City Below Market Rate (BMR) AfFordable Housing Fund (AHF) (approximately $6 million unencumbered as of 2014) ■ CDBG Entitlement Funds (approximately $150,000 unencumbered as of 2014) ■ Santa Clara County HOME Consortium Funds Funds (available through a competitive application process after the City joins the Consortium in 2015) ■ Mortgage Revenue Bonds ■ State Grant Programs ■ Federal Grant Programs ■ Low Income Housing Tax Credits ■ HUD Section 8 "Mark to Market" Program Once the City becomes aware of an impending conversion, stafF will begin exploring the availability of funding from various sources. In many cases, the City will find it advantageous to collaborate with private affordable housing developers or managers to develop and implement a viable plan to preserve affordable housing units. Private developers can often bring additional expertise and access to funding, such as tax credits. The State Department of Housing and Community Development maintains a list of affordable housing developers and property managers who have expressed an interest in working with local communities to preserve affordable housing projects. This database lists organizations that are interested in working in any county within the State of California, including well-known affordable housing providers such as Mercy Housing, EAH, MidPen Housing, etc. The database also lists numerous organizations that have expressed interest in working on preservation projects in Santa Clara County in particular, including organizations such as BRIDGE Housing DRAFT B-47 2040 GENERAL PLAN City of Cupertino Corporation and Eden Housing. The organizations listed above are but a few of those listed in the HCD database that the City of Cupertino could consider as potential partners in the event that it becomes necessary to assemble a team to preserve an affordable housing project. 2.7. Special Housing Needs This section of the needs assessment profiles populations with special housing needs, including seniors, large households, single parent households, persons with disabilities (including persons with developmental disabilities), farm workers, persons living in poverty, and homeless persons. Table 2.20 summarizes the special needs groups in Cupertino Seniors Many senior residents face a unique set of housing needs, largely due to physical limitations, fixed incomes, and health care costs. Affordable housing cost, unit sizes and accessibility to transit, family, health care, and other services are important housing concerns for the seniors. As Table 2.21 shows, in 2010, 19.7 percent of Cupertino householders were 65 years old or older, comparable to the proportion of senior households in Santa Clara County (18.5 percent). A large majority of these senior households owned their homes (80.3 percent). In Cupertino, � homeownership is much more common among seniors than for any other age group. Just 58.2 percent of householders under 64 years old owned their homes. B-4 8 DRAFT Housing Element Technical Report Appendix B � : 1 ' � � ' • ' 1 1 1 i ;,�'';,, i '�r � �� I'�f, �i q;i � ' '' �I,i�, i, �� �i:l �i i I �� , i i; �'� I �j�ll ;I� �'I�� �i'�il # ql � + � �i • `i �i� �M,'� ��,I• � 7 I � N� • M ;' • Ke Senior-Headed 3,983 785 (19.7/o) 3,198 (80.3/o) Households ° ° 19.7% Households with a 5,069 n/a n/a 25.1% Senior Member Seniors Living Alone 1,612 516 (32.0%) 1,096 (68.0%) 8.0% Large Households 1,883 619 (32.9%) 1,264 (67.1%) 9.3% Single-Parent gg3 n/a n/a 4.4% Households Female Single-Parent 667 n/a n/a 6.9% Households Persons with Disabilities 3,445 n/a n/a 5.9% (a) Agricultural Workers (b) 36 n/a n/a <1% Persons living in Poverty 2,330 n/a n/a 4.0% (b) Homeless (c) 112 n/a n/a <1% Notes: (a)2010 Census data not available for persons with disabilities. Estimate is from the 2008-2012 ACS. Estimate is for persons 5 years of age and older. (b)2010 Census data not available. Estimate is from the 2007-2011 ACS.I (c)2010 Census data not available. Estimate is from 2013 Santa Clara County Homeless Point-In-Time Census and Survey Comprehensive Report. Of the 112 homeless persons counted in Cupertino in 2013, 92 persons were unsheltered and 20 were sheltered. Sources:Association of Bay Area Governments(ABAG), Housing Element Data Profiles, December 2013; U.S. Census,American Community Survey(ACS),2008-2012;2013 Santa Clara County Homeless Point-In-Time Census and Survey Comprehensive Report. Comprehensive Housing Affordability Strategy (CHAS) data shown in Table 2.16 indicates that among Cupertino's senior households, renters were more likely to be lower income than homeowners. Nearly 62 percent of senior renter-households earned less than 80 percent of the median family income compared to only 42 percent of senior homeowners. Seniors across the country are often required to dedicate a larger portion of their income to housing costs. Among all of the renter-households in Cupertino, the proportion DRAFT B-49 2040 GENERAL PLAN City of Cupertino of seniors overpaying for housing in 2010 was more than double the proportion for the general population: 63 percent versus 30 percent, respectively (see Table 2.16 on page A-40). For homeowners, however, the proportion of senior owner-households overpaying for housing was much more on par with the general population (29 percent versus 34 percent, respectively). During the community outreach process for developing the Housing Element, the need for senior housing options in Cupertino was highlighted by many residents. � . - • • � : • . � � � �� a m � : :: � , �,,� �a�G ,�� � F ,� �,� ��,, q . �a \i B�� y � �"������ �aN�.�`'M i ro� xF ���r a� �� !„.�3`� �� c �'a ��4i�;�s� ,,;��,�Y,��' &��� �i x) A��k a��,�l�;� r v,.�.C� ^N��G � Fi � a a � W.. ,,,,��. ,�. �,.. �i a�t�� '���. <\�� � 90��,��„ .,a,aa,e,.. �.��:e��?�c�ueot�d��n�i x,�..�, ... .. , ,. � , , , . . , ., . . „�,. a ,. .. , , ";�:�:a�a�U�d�,.,ww,�a�u,ts,1�.. , � .., .. .. Under 64 Years Old Owner 9,429 58.2% 265,727 54.0% Renter 6,769 41.8% 226,517 46.0% Total 16,198 100.0% 492,244 100.0% 65 Plus Years Old Owner 3,198 80.3% 82,571 73.8% Renter 785 19.7% 29,389 26.2% Total 3,983 100.0% 111,960 100.0% Total Households 20,181 604,204 Percent Householders 19.7% 18.5% 65 Plus Years Source:Association of Bay Area Governments(ABAG), Housing Element Data Profiles, December 2013. Resources Available Cupertino offers a number of resources for seniors. As shown in Table 2.22, there are five residential care facilities for the elderly and three skilled nursing facilities in the city. Residential care facilities for the elderly (RCFEs), also known as "assisted living" or "board and care" facilities, provide assistance with some activities of daily living while still B-5 0 DRA�T Housing Element Technical Report Appendix B allowing residents to be more independent than in most nursing homes. Skilled nursing facilities—also known as nursing homes—offer a higher level of care, with registered nurses on staff 24 hours a day. In addition to assisted living facilities, there are two subsidized independent senior housing developments in the city. As shown in Table 2.22, there are a total of 100 units of affordable senior housing in Cupertino. Furthermore in 2011, the City utilized CDBG funds to rehabilitate a home that provides accommodation to five low-income seniors. Demand for these subsidized units is high. Staff at Sunny View estimate that over 700 people are on the waiting list, and the turnover rate for available units is about 10 to 15 per year. The Cupertino Senior Center also serves as an excellent resource for seniors. The many different services at the center help seniors to obtain resources in the community that will assist them to continue to remain independent and safe in their own homes. Available programs include various social and recreation activities, special events, travel programs, transportation discounts, drop-in consultation, case management, medical, and social services. Additionally, the Senior Adult Day Care (Cupertino Center) provides frail, dependent, low-income Cupertino seniors with specialized programs of recreation, mental stimulation, exercise, companionship and nutritious meals during the day. This facility is operated by Live Oak Adult Day Care a local non-profit organization. In addition, the City supports a number of programs with CDBG, General Fund Human Service Grants (HSG) and Below Market-Rate (BMR) Affordable Housing Fund (AHF) funds that provide services specifically for seniors in the community. The Long-Term Care Ombudsman Program, operated by Catholic Charities, provides advocacy for DRAFT B-51 2040 GENERAL PLAN City of Cupertino • • • • � Residential Care Facilities for the Location Capacity Elderly The Forum at Rancho �an Antonio 23500 Cristo Rey Drive 741 Paradise Manor 4 19161 Muriel Lane b Pleasant Manor of Cupertino 10718 Nathanson Avenue 6 Purglen of Cupertino 10366 Miller Avenue 12 Sunny View Manor (a) 22445 Cupertino Road 190 Total 955 Skilled Nursing Facilities °�' Health Care Center at Forum at 23600 Via Esplendor 48 Rancho San Antonio Cupertino Healthcare &Wellness 22590 Voss Avenue 170 Center Sunny View Manor 22445 Cupertino Road 48 Total 266 Subsidized Independent Senior Rental Housing Sunny View West 22449 Cupertino Road 99 Senior Housing Solutions 19935 Price Avenue 1 Total 100 Adult Day Care Live Oak Adult Day Services 20920 McClellan Road 30 Cupertino Senior Center 21251 Stevens Creek N/A Notes: (a)Sunny View Manor has 115 units for independent and assisted(RCFE)living.All 115 units are licensed as RCFE units, but residents may choose between independent and assisted living options. The distribution of independent and assisted living units varies over time. Sources:California Department of Social Services, Community Care Licensing Division Facility Search Form,2014;California Department of Public HealtF�, Health Facilities Search,2014. Cupertino seniors in long-term care facilities to ensure they have a voice in their own care and treatment. The program receives, investigates and resolves any complaints associated with the care of long-term care facility residents. A legal assistance program for seniors is provided by Senior Adults Legal Assistance (SALA) which provides free legal services to low- and very low-income seniors at the Cupertino Senior Center. Legal services provided are in the area of consumer complaints, housing, elder abuse, and B-52 DRAFT Housing Element Technical Report Appendix B simple wills. The Live Oak Adult Day Care receives partial financial assistance to help operate the Senior Adult Day Care (Cupertino Center). • • . � r ° oY ��d����� u� i i, P �ir i a���i I ���,��,� ���M� �����.� ;�, � i II ,.III .�a�� :�.,,».» II�";,,,:,;;;.,;;"'�_ . • •_ �� Cupertino 1-4 Persons 11,363 90.0% 6,935 91.8% 18,298 90.7% 5+ Persons 1,264 10.0% 619 8.2% 1,883 9.3% Total 12,627 100.0% 7,554 100.0% 20,181 100.0% Santa Clara County 1-4 Persons 297,385 85.4% �217,578 85.0% 514,963 85.2% 5+ Persons 50,913 14.6% 38,328 15.0% 89,241 14.8% Total 348,298 100.0% 255,906 100.0% 604,204 100.0% Source:Association of Bay Area Governments(ABAG), Housing Element Data Profiles, December 2013. Large Households Large households are defined as those with five or more members. Large households are identified as a special needs group because of limited opportunities for adequately sized and afFordable housing. Cupertino has a smaller proportion of large households than Santa Clara County as a whole. As shown in Table 2.23, 9.3 percent of all households in Cupertino were comprised of five or more persons in 2010. In Santa Clara County, about 14.8 percent of households were considered large. Large households were more likely to be homeowners (1,264 households, 67 percent) than renters (619 households, 33 percent). While Cupertino has a smaller proportion of large households than Santa Clara County, its housing stock is comprised of a larger proportion of homes with three or more bedrooms. As shown in Table 2.24, about 64 percent of the housing units in Cupertino had three or more bedrooms while only 59 percent of Santa Clara County homes had three or more bedrooms. DRAFT B-5 3 2040 GENERAL PLAN City of Cupertino • : � • • : : ' • : � ' • • 1 � �' �; r � * ��'� ��° P 9",A .- - + �. 4� • • . I , Y I•'�•%!I'�� �'�'�il"�il;'ii;i!4'I �I i�'I�'�ill� .i,'�;pj�f,��d� ���� �WIf �d!I;;;,ti� , „'i,���' �!! �in�tr li;,,I �� . � �.. I ! �'� � � . . �� w,. � � .. ;�.. � �e .. Cupertino No Bedroom 0 0.0% 208 2.9% 208 1.0% 1 Bedroom 468 3.6% 1,554 21.5% 2,022 10.0% 2 Bedrooms 1,530 11.8% 3,491 48.4% 5,021 24.9% 3 Bedrooms 4,782 36.9% 1,609 22.3% 6,391 31.7% 4 Bedrooms 4,785 36.9% 314 4.4% 5,099 25.3% 5 or More Bedrooms 1,396 10.8% 39 0.5% 1,435 7.1% Total 12,961 100.0% 7,215 100.0% 20,176 100.0% Santa Clara County No Bedroom 1,091 0.3% 16,371 6.6% 17,462 2.9% 1 Bedroom 7,477 2.1% 74,195 29.9% 81,672 13.6% 2 Bedrooms 54,461 15.5% 94,453 38.1% 148,914 24.8% 3 Bedrooms 147,933 42.0% 45,456 18.3% 193,389 32.3% 4 Bedrooms 109,892 31.2% 13,875 5.6% 123,767 20.6% 5 or More Bedrooms 31,043 8.8% 3,405 1.4% 34,448 5.7% Total 351,897 100.0% 247,755 100.0% 599,652 100.0% Source:Association of Bay Area Governments(ABAG), Housing Element Data Profiles, December 2013. Resources Available Large households in Cupertino can benefit from the general housing programs and services offered by the City, such as the BMR Program and housing rehabilitation programs. Other programs include Mortgage Credit Certificates and Housing Choice Vouchers administered by the County, and homebuyer assistance offered by the Housing Trust Silicon Valley. Single-Parent Households Single-parent households often require special consideration and assistance because of their greater B-54 DRAFT Housing Element Technical Report Appendix B need for affordable housing and accessible day-care, health care, and other supportive services. Female-headed single-parent households with children, in particular, tend to have a higher need for affordable housing than other family households in general. In addition, these households are more likely to need childcare since the mother is often the sole source of income and the sole caregiver for the children in the household. In 2010, there were 667 female- headed single-parent households with children under 18 years of age in Cupertino, representing 3.3 percent of all households in the City (Table 2.25). A significant proportion of these households were living in poverty in 2011 (21 percent). The U.S. Census Bureau sets poverty level thresholds each year and they are often used to establish eligibility for federal services. The number of female-headed single-parent households declined slightly from 2000, but these households continue to make up the same proportion of all households in the City. Compared to Santa Clara County, the City's proportion of female-headed single-parent households was lower (five percent versus three percent, respectively). DRAFT B-5 5 2040 GENERAL PLAN City of Cupertino • • � • � • • • 1 1 ��,� �"x""e k +�r��� �,�,;;, ; - ., ��k a ���� �� � ������aF��O�' ��� ��`..,a,,„ ", a� �,rv I �� � i� ,H,n,1 6�tP,��M :„ ,.� m� � �a,��c� � � a, "�a �;�. � � i dbv �au �� � '� �i �� �,. ` a�,'. ., .�, i�,,, o,� � � � \ wwS` ., . . . �. �i,� , t�S�`�w'�,a, , . ^n ,.. , . A^t �1. ,,,�„�u `�� .. 1-Person Household 3,544 17.6% Male Householder 1,472 7.3% Female Householder 2,072 10.3% 2 or More Person Household 16,637 82.4% Family Households: 15,776 78.2% Married-Couple Family: 13,802 68.4% With Own Children Under 18 Years 8,392 41.6% Other Family: 1,974 9.8% Male Householder, no Wife Present: 581 2.9% With Own Children Under 18 Years 216 1.1% Female Householder, no Wife Present: 1,393 6.9% With Own Children Under 18 Years 667 3.3% Nonfamily Households: 4,405 21.8% Male Householder 1,472 7.3% Female Householder 2,072 10.3% Total Households 20,181 100.0% Source: U.S. Census,2010. Resources Available Single-parent households in Cupertino can benefit from City programs and services that provide assistance to lower income households in general, such as the BMR, CDBG and HSG Programs. Single-parent households can also benefit from supportive and childcare services available to County residents through various organizations, including Catholic Charities of Santa Clara County, Choices for Children, Grail Family Services, InnVision Shelter Network, Second Harvest Food Bank, and West Valley Community Services, among others. 3 3 David Rosen. "Inclusionary Housing and Its Impact on Housing and Land Markets." NHC Affordable Housing Policy Review 1(3).2004. B-5 6 DRAFT Housing Element Technical Report Appendix B � . ' • ' � ' • 1 y � Allll�"IIp1 II*, � w „ _ '_ ,� �� ; _ _ �� Married-Couple Family 237 57.5% With Own Children Under 18 Years 115 27.9% Other Family Male Householder 26 6.3% With Own Children Under 18 Years 7 1.7% Female Householder 149 36.2% With Own Children Under 18 Years 87 21.1% Total Families Below Poverty Line 412 100.0% Source: U.S. Census,American Community Survey(ACS),2007,2011 Persons with Disabilities A disability is a physical or mental impairment that limits one or more major life activities. Persons with a disability generally have lower incomes and often face barriers to finding employment or adequate housing due to physical or structural obstacles. This segment of the population often needs affordable housing that is located near public transportation, services, and shopping. Persons with disabilities may require units equipped with wheelchair accessibility or other special features that accommodate physical or sensory limitations. Depending on the severity of the disability, people may live independently with some assistance in their own homes, or may require assisted (iving and supportive services in special care facilities. According to the 2008-2012 ACS, about six percent of Cupertino residents and eight percent of Santa Clara County residents had one or more disabilities (Table 2.27). Hearing, ambulatory, and independent (iving difficulties were the most common disabilities among seniors, while cognitive difficulties were more common among persons DRAF�T B-57 2040 GENERAL PLAN City of Cupertino aged 18 to 64 with disabilities. Overall, ambulatory difficulties were the most prevalent (45.2 percent). Table 2.28 shows that among persons with disabilities aged 18 to 64, the majority (55.8 percent) in both the City and County were not in the labor force. About one-third of both City and County residents (aged 18 to 64) with disabilities were employed. Persons with Developmental Disabilities A recent change in State law requires that the Housing Element discuss the housing needs of persons with developmental disabilities. As defined by the Section 4512 of the Welfare and Institutions Code, "developmental disability" means "a disability that originates before an individual attains age 18 years, continues, or can be expected to continue, indefinitely, and constitutes a substantial disability for that individual. As defined by the Director of Developmental Services, in consultation with the Superintendent of Public Instruction, this term shall include menta) retardation, cerebral palsy, epilepsy, and autism. This term shall also include disabling conditions found to be closely related to mental retardation or to require treatment similar to that required for individuals with mental retardation, but shall not include other handicapping conditions that are solely physical in nature." This definition also reflects the individual's need for a combination and sequence of special, interdisciplinary, or generic services, individualized supports, or other forms of assistance that are of lifelong or extended duration and are individually planned and coordinated. B-5 8 DRAFT Housing Element Technical Report Appendix B � � . . • � � : � � : • 1 s � s -s � s •- � � i p I� J IIIRI ' ���`�� "r„ ' � • ' • :. re'*'' ' • - w�"' a ; , , ,. , �„ . . . ,.u xh,m %�t�y,����(� Cupertino With a hearing difficulty 17.8% 21.6% 55.3% 40.8% With a vision difficulty 5.3% 16.4% 10.9% 12.7% With a cognitive difficulty 36.2% 40.3% 21.9% 29.5% With an ambulatory difficulty 30.3% 32.1% 55.0% 45.2% With a self-care difficulty 57.9% 19.6% 20.0% 21.5% With an independent living __ 32.0% 46.0% 38.6% difficulty Total Persons with 152 1,313 1,980 3,445 Disabilities (a) % of Total Population 6% Santa Clara County With a hearing difficulty 11.8% 20.1% 41.4% 29.8% With a vision difficulty 14.6% 16.4% 17.4% 16.7% With a cognitive difficulty 69.4% 41.7% 28.0% 36.9% With an ambulatory difficulty 17.5% 42.3% 61.9% 50.1% With a self-care difficulty 28.5% 17.2% 26.9% 22.6% With an independent living __ 36.8% 51.4% 41.5% difficulty Total Persons with 8,691 62,221 65,554 136,466 Disabilities (a) %of Total Population 8% Note: (a)Total does not include population under 5 years of age. Source: U.S. Bureau of the Census,American Community Survey (ACS),2008-2012. The Census does not record developmental disabilities. However, according to the U.S. Administration on Developmental Disabilities, an accepted estimate of the percentage of the population that can be defined as developmentally disabled is 1.5 percent. This equates to approximately 875 persons with developmental disabilities residing in the City of Cupertino, based on the 2010 Census population. DRAFT B-S 9 2040 GENERAL PLAN City of Cupertino . � . � . , � . - � . i �r�� ;s., a �� „�w������� ��e�a� � , � r��� � � w, ,� . ,,, ����������.�� ���� ��� „ �,� , ��, ,r r. �� �. � :.�, ,..Y., •w. ; ,�n�.� .��, M��,,r.� . a �^ ��� ... - m`..W.���]...._.a`S.ww�1e.,Naurv^.,, :� I II�i�"�' �����I� � ii,j�i��'ji�'��� ����'�i°�i���'� . I�'�.. ' ••�� "! :IM� B • • ������ � • •� �.. � .A �•f � �#• • Total Population 1,313 100.0% 62,221 100.0% Age 18-b4 �a� Employed 480 36.6% 22,566 36.3% Unemployed 101 7.7% 4,932 7.9% Not in Labor Force 732 55.8% 34,723 55.8% Note: (a)Total does not include population under 18 years of age or over 65 years. Source: U.S. Bureau of the Census,American Community Survey(ACS),2008-2012 According to the State's Department of Developmental Services, as of September 2013, approximately 303 Cupertino residents with developmental disabilities were being assisted at the San Andreas Regional Center. Most of these individuals were residing in a private home with their parent or guardian, and 196 of these persons with developmental disabilities were under the age of 18. Many developmentally disabled persons can live and work independently within a conventional housing environment. More severely disabled individuals require a group living environment where supervision is provided. The most severely affected individuals may require an institutional environment where medical attention and physical therapy are provided. Because developmental disabilities exist before adulthood, the first issue in supportive housing for the developmentally disabled is the transition from the person's living situation as a child to an appropriate level of independence as an adult. Resources Available Table 2.29 summarizes the licensed community care facilities in Cupertino that serve special needs groups. B-60 DRAFT Housing Element Technical Report Appendix B Adult residential facilities offer 24-hour non-medical care for adults, ages 18 to 59 years old, who are unable to provide for their daily needs due to physical or mental disabilities. Group homes, small residential facilities that serve children or adults with chronic disabilities, also provide 24-hour care by trained professionals. In addition, a 27-unit multi-family residential property (Le Beaulieu) offers affordable housing to very low-income persons with disabilities. . : • � . - . • - � � . • . � . - . � .�. Paradise Manor 2 19133 Muriel Lane b Paradise Manor 3 19147 Muriel Lane 6 Total 12 . . . - Pace-Morehouse 7576 Kirwin Lane 6 Pacific Autism Center for 19681 Drake Drive 6 Education Miracle House Total 12 Source:California Department of Social Services, Community Care Licensing Division Facility Search Form,2014 Farmworkers Farmworkers are traditionally defined as persons whose primary incomes are earned through agricultural labor. They have special housing needs because of their relatively (ow income and also because of the often transient and seasonal nature of their jobs. The 2011 ACS reported that 36 Cupertino residents were employed in the agriculture, farming, fishing and forestry occupations, making up less than 0.1 percent of the City's population. Resources Available To the extent that farmworkers may want to live in Cupertino, their need for affordable housing would DRAFT B-61 2040 GENERAL PLAN City of Cupertino be similar to that of other lower income persons, and their housing needs can be addressed through general affordable housing programs for lower-income households, such as BMR, CDBG and HSG programs. Residents Living Below the Poverty Level Families with incomes below the poverty level, specifically those with extremely low and very low incomes, are at the greatest risk of becoming homeless and often require assistance in meeting their rent and mortgage obligations in order to prevent homelessness. The 2007-2011 ACS found that four percent of all Cupertino residents were living below the poverty level. Specifically, about three percent of family households and two percent of families with children were living below the poverty level. These households may require specific housing solutions such as deeper income targeting for subsidies, housing with supportive services, single-room occupancy units, or rent subsidies and vouchers. Resources Available Persons living with incomes below the poverty level can benefit from City programs and services that provide assistance to lower-income households in general, such as BMR, CDBG and HSG programs. Households with incomes below the poverty level can also benefit from supportive services available to County residents through various organizations, including Catholic Charities of Santa Clara County, Choices for Children, InnVision Shelter Network, Second Harvest Food Bank, and West Valley Community Services, among others. Homeless Demand for emergency and transitional shelter in Cupertino is difficult to determine given the episodic nature of homelessness. Generally, episodes of homelessness B-6 2 DRAFT Housing Element Technical Report Appendix B among families or individuals can occur as a single event or periodically. The 2013 Santa Clara County Homeless Census & Survey reported a point-in-time count of 7,631 homeless people on the streets and in emergency shelters, transitional housing, and domestic violence shelters. This estimate includes 112 homeless individuals in the City of Cupertino. The count, however, should be considered conservative because many unsheltered homeless individuals may not be visible at street locations, even with the most thorough methodology. There is no data presently available documenting the increased level of demand for shelter in Santa Clara County or Cupertino during particular times of the year. Due to the relatively mild climate, the only time of year when increased demand appears to be a factor is during the winter months (November to March). The annual homeless count always takes place in the last week of January, a period when demand for shelter typically is at its highest. Since the year-round need described above is based on the annual count, the need for emergency shelter either year-round or seasonally is not likely to be greater than that found during the annual homeless count. Resources Available Table 2.31 lists facilities within Santa Clara County that serve the needs of homeless. Emergency shelters provide temporary shelter for individuals and families while transitional shelters serve families making a transition from homelessness to permanent housing. In Cupertino, West Valley Community Services (WVCS) offers supportive services and the Transitional Housing Program (THP) through its Haven to Home Program. The Haven to Home Program helps homeless individuals and families work towards stability by providing access to resources such as food, transportation, toiletries and other such items. The DRAFT B-63 2040 GENERAL PLAN City of Cupertino program has the capacity to provide housing for 12 single men and six single mothers with one child under the age of six. Residents of THP sign a six-month lease, which may be renewed depending on the resident's case plan and progress. For supportive services, a case manager is available to provide intensive case management for up to 21 homeless households at a time. The THP typically has a waiting list of 10 to 30 households, while the waiting list for supportive services generally has five to 20 households. Given the increase in requests for emergency shelter over the past few years, WVCS staff believes that there is a need for additional emergency shelter services in Cupertino. This need is particularly high for families with children. Additionally, Faith in Action Silicon Valley Rotating Shelter operates a rotating shelter program which accommodates up to 15 homeless men. The shelter rotates locations, which include various Cupertino congregation and community partner locations. Additional services offered by the program include case management, meals, shower facilities, bus passes, job development and counseling, and other supportive services. � 1 � • � N i Cupertino Unsheltered (b) 92 82.1% Sheltered (c) 20 17.9% Total 112 100.0% Santa Clara County Unsheltered (b) 5,674 74.4% Persons in Family Households 1,011 13.2% Sheltered (c) 1,957 25.6% Persons in Family Households 56 0.7% Total 7,631 100.0% Notes: (a)This Homeless Census and Survey was conducted over a two day period from January 29 to January 30, 2013 This survey,per HUD new requirements, does not include people in rehabilitation facilities,hospitals orjails due to more narrow HUD definition of point-in-time homelessness. (b)Individuals found living on the streets, in parks, encampments, vehicles, or other places not meant for humanhabitation. (c)Individuals who are living in emergency shelters or transitional housing programs. Source:2013 Santa ClaraCounty Homeless Point-In-Time Census&Survey, Comprehensive Report. B-6 4 DRAFT Housing Element Technical Report Appendix B 2.8. Needs Assessment Summary ■ Cupertino grew faster than Santa Clara County and the Bay Area between 2000 and 2010. The local population increased by 15 percent from 50,600 people to 58,300. However, some of this growth was due to the annexation of 168 acres of unincorporated land in Santa Clara County between 2000 and 2008. ■ ABAG projects Cupertino will grow to 71,200 residents by 2040. Cupertino and Santa Clara County are anticipated to experience the same rate of population increase (nearly 21 percent) between 2010 and 2040; the Bay Area's population is expected to increase by 28 percent during the same time. ■ Cupertino has an aging population. The median age in Cupertino rose from 37.9 years old in 2000 to 39.9 years old in 2010. The percent of elderly residents, aged 65 years old and older, increased from 11 percent to 13 percent. ■ The City has a high percentage of family households; in 2010, family households comprised 77 percent of all households in Cupertino, compared with 71 percent of Santa Clara County households and 65 percent of Bay Area households. ■ Large households comprised 9.3 percent of the City's total households, the majority of which were owner- households. Overall, the proportion of large households in the City was lower than countywide average. ■ Approximately 3.3 percent of all households in the City were single-parent households, with 21 percent living below the poverty level. However, the proportion of single-parent households in the City has declined since 2000. DRAFT B-65 2040 GENERAL PLAN City of Cupertino ■ About six percent of the City's population aged five and above had one or more disabilities, (ower than the countywide average of eight percent. According to the State Department of Developmental Services, 303 residents were being assisted at the San Andreas Regional Center. ■ Cupertino, along with Santa Clara County, is becoming an increasingly jobs-rich city. ABAG projects the number of jobs in Cupertino will increase by 25 percent between 2010 and 2040, resulting in a jobs-to-household ratio of 1.38 by 2040, up from the ratio of 1.29 in 2010. ■ The local housing stock is dominated by single-family detached homes; 57 percent of homes were single-family detached dwellings in 2013. Although the number of multi-family housing units experienced the most rapid growth between 2000 and 2013, Cupertino still has a smaller proportion of multi-family housing units than Santa Clara County (28 percent in the city versus 32 percent in the County overall). One affordable housing project— Beardon Drive (eight units) — is considered at risk of converting to market-rate housing during the next ten years. ■ Housing costs continue to rise in Cupertino. Median home sales prices rose by approximately 29 percent between 2011 and 2013, after plateauing between 2008 and 2010 during the depth of the housing market crisis. Homeownership in Cupertino is generally out of reach for most except the highest-earning households. ■ Affordable rental housing is equally difficult to obtain. The current median market rent rate of$3,500 for a three-bedroom unit exceeds the maximum affordable monthly rent for lower- and moderate-income households. B-6 6 DRAFT Housing Element Technical Report Appendix B � . . . . - . � 1 , a��� ��.. '� ���`�" �� tp�x � ���� _ ��OK�*�,�.��. �' � b • �4,} > � 'I' ' ii i Z �,� , . ,. �w.� ., ,�>. �., ,,, ,� .,- � ��;,�.,���'Y�.�1'��"�i¢��. � t�,M ,����S I� 4����. Ko� , . _ ....,... . .,a; , .,� ,����� ��uu�m„�a� ����II� � ,��� � Boccardo Family Living EHC LifeBuilders Transitional (Families Center 13545 Monterey 26 Units With Children) Road San Martin, CA 95046 Boccardo Regiona) Reception Center 2011 EHC LifeBuilders Transitiona) (Veterans) Little Orchard St. San 20 Beds Jose, CA 95125 Sobrato House Youth Center 496 S. Third EHC LifeBuilders Transitional (Youth) Street San Jose, CA 9 Units 95112 Family Supportive Transitional (Families) Scattered Sites in Santa Not available Housing Clara County Montgomery Street Inn InnVision Transitional 358 N. Montgomery g5 Persons Street San Jose, CA 95110 Transitional (Women and ' Villa 184 South 11th InnVision Children) Street San Jose, CA 55 Persons 95112 Transitional (Victims The HomeSafes in San Next Door Solutions to of Domestic Violence - 48 Units Domestic Violence Women and Children) �ose and Santa Clara (a) 10311-10321 West Valley Community Transitional (Men and Greenwood Ct. 12 Single Men and 6 Services Single Mothers) Cupertino, CA 95014 Single Mothers Maitri Transitional (Women and N/A (address is confi- 9 Beds Children) dential) Note: (a)Location is confidential. Source:211 Santa Clara County,2014. DRAFT B-6 7 2040 GENERAL PLAN City of Cupertino . � . . . . - . � � . M IN!W�'V �I�I I � �� �� '�' n� w� � .. . ... � " „ �f, � :, �i t�`�1�!' h �P ; �"� ,,.,� � ii�n,.;, 3',� ., t ; i� �,„�, , �a�,..«� ��a w j ,. . � ,6�.� 9 9v fiii � g��i �� i� I Asian Americans For Emergency (Victims of Asian Women's Home Community Involvement Domestic Violence - 2400 Moorpark Avenue, 12 persons of Santa Clara County, �/omen and Children Suite 300 Inc. ) Boccardo Reception 200 Persons (Year EHC LifeBuilders Emergency Center (BRC) 2011 Little Round) 250 Persons Orchard San Jose, 95125 �December 2 to March 31) Sunnyvale National EHC LifeBuilders Emergency Guard Armory 620 E. 125 Persons Maude Sunnyvale, 94086 Boccardo Reception 40 Persons (December EHC LifeBuilders Emergency (Veterans) Center (BRC) 2011 Little 2 to March 31) Orchard San Jose, 95125 Sobrato House Youth EHC LifeBuilders Emergency (Youth) Center 496 S. Third 10 beds Street San Jose, CA 95112 San Jose Family Family Supportive Emergency (Families) Shelter 692 North King 35 Families Housing Road San Jose, CA, 951331667 Faith In Action Silicon Valley Rotating Shelter Faith In Action Silicon Emergency 1669-2 Hollenbeck Ave. 15 Persons Valley Rotating Shelter #220 Sunnyvale, CA 94087 Julian Street Inn 546 InnVision Emergency West Julian Street San 70 Beds Jose, CA, 95110 Emergency (Women and 260 Commercial Street InnVision Children) San Jose, CA, 95112 55 Persons Emergency (Victims of The Shelter Next Next Door Solutions to Domestic Violence - DoorSanta(jara County 20 Persons Domestic Violence Women and Children) B-68 DRAFT Housing Element Technical Report Appendix B ■ In 2010, 30 percent of renters and 37 percent of homeowners were overpaying for housing in Cupertino. ■ In 2010, 63 percent of elderly renter-households were overpaying for housing, the highest rate among any household type regardless of tenure. ■ The 2013 Santa Clara County Homeless Survey reported a point-in-time count of 7,631 homeless people on the streets and in emergency shelters, transitional housing, and domestic violence shelters, including 112 individuals in the City of Cupertino. 3. REGIONAL HOUSING NEEDS DETERIVIlNATIC7NS 2Q14-2022 This section discusses the projected housing needs for the current planning period, which runs from January 1, 2014 through October 31, 2022. 3.1. Regional Housing Needs Allocation (RHNA) Pursuant to California Government Code Section 65584, the state, regional councils of government (in this case, ABAG), and local governments must collectively determine each locality's share of regional housing need. In conjunction with the state-mandated housing element update cycle that requires Bay Area jurisdictions to update their elements by January 31, 2015, ABAG has allocated housing unit production needs for each jurisdiction within the Bay Area. These allocations set housing production goals for the planning period that runs from January 1, 2014 through October 31, 2022. The following summarizes ABAG's housing need allocation for Cupertino, along with housing production data for the 2014-2022 time period. The City of Cupertino may count housing units constructed, approved, or proposed since DRAFT g-69 2040 GENERAL PLAN City of Cupertino January 1, 2014 toward satisfying its RHNA goals forthis planning period. Table 3.1 presents a summary of ABAG's housing needs allocation for Cupertino for 2014 to 2022. . - • � - � ����. ���,��� � �q,�...,�i �;���,����ro, , M,,, �, ,>�„. .� : . -..3 . �„ , :. . �.,, ., �����.u��,�� �,�� ti �� ��,��.e�.��� ����.M;��, �,ww�,.a����,�.rv ....., ,�.w��.��,ro,� Extremely Low/Very Low(0-50% of AMI) 356 33.5% Low(51-80% of AM I) 207 19.5% Moderate (81-120% of AMI) 231 21.7% Above Moderate (over 120%AMI) 270 25.4% Total Units 1,064 100.0% Source:ABAG Regional Housing Needs Assessment,2014. 3.2 Housing Needs for Extremely Low-Income Households State law requires housing elements to quantify and analyze the existing and projected housing needs of extremely low-income households. HUD defines an extremely low- income household as one earning less than 30 percent of AMI. These households encounter a unique set of housing situations and needs, and may often include special needs populations or represent families and individuals receiving public assistance, such as social security insurance (SSI) or disability insurance. As discussed in the Needs Assessment section, approximately eight percent of all Cupertino households earned less than 30 percent of AMI in 2010. Extremely low- income households represented 12 percent of all renter- households and five percent of all owner-households. To estimate the projected housing need for extremely low income households, state law allows either assuming 50 percent of the very low-income households as extremely low B—7 0 DRAFT Housing Element Technical Report Appendix B income, or to apportion the very low-income households based on Census-documented distribution. Using the allowable even split, 50 percent of Cupertino's 356 very low- income RHNA units are assumed to serve extremely low- income households. Based on this methodology, the city has a projected need of 178 units for extremely low-income households. Extremely low-income households often rely on supportive or subsidized housing as a means of transitioning into stable, more productive lives. Supportive housing combines housing with supportive services such as job training, life skills training, substance abuse programs, and case management services. Subsidized housing can include programs such as the Section 8 Housing Choice Voucher Program or tenant-based rental assistance (TBRA) which ensures that the tenant does not pay more than 30 percent of their gross income on housing by paying a portion of the tenants rent. Efficiency studios and BMR rental units can also provide affordable housing opportunities for extremely low- income households. �. N t�11�l C� C{�1�15T�AI�1TS Section 65583(a)(4) of the California Government Code states that the housing element must analyze "potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures." In addition to government constraints, this section assesses other factors that may constrain the production of affordable housing in Cupertino. These include infrastructure availability, environmental features, economic and financing DRAFT B-7 1 2040 GENERAL PLAN City of Cupertino constraints, market conditions and community acceptance of different housing types and densities. Recent court rulings have removed some of the mechanisms local government traditionally has used to require developers to provide affordable housing, thus exacerbating the difficulty of ineeting the number of units determined necessary by the regional housing needs assessment. 4.1. Government Constraints Government regulations can affect housing costs by limiting the supply of buildable land, setting standards and allowable densities for development, and exacting fees for the use of land or the construction of homes. The increased costs associated with such requirements are often passed on to consumers in the form of higher home prices and rents. Potential regulatory constraints include local land use policies (as defined in a community's general plan), zoning regulations and their accompanying development standards, subdivision regulations, growth control ordinances or urban limit lines, and development impact and building permit fees. Lengthy approval and processing times also may be regulatory constraints. General Plan The Cupertino General Plan 2000-2020 was completed in November 2005. The General Plan provides the policy and program direction necessary to guide (and use decisions in the first two decades of the 21 st century. The existing General Plan is current and legally adequate and is not considered an impediment to housing production. Parallel with the update of this Housing Element, the City undertook a focused update to the Land Use and Circulation Elements to respond to community interest in enlivening aging commercial developments and better accommodating housing need, among requests from some property owners for General Plan Amendments. B-7 2 DRAFT Housing Element Technical Report Appendix B As required by state law, the General Plan includes a land use map indicating the allowable uses and densities at various locations in the city. The Land Use/Community Design section identifies five categories of residential uses based on dwelling unit density, expressed as the number of dwelling units permitted per gross acre. ■ The "Very Low Density" classification, intended to protect environmentally sensitive areas from extensive development and to protect human life from hazards associated with floods, fires, and unstable terrain, applies one of four slope-density formulas to determine allowable residential density. ■ The "Low Density" and "Low/Medium Density" categories promote traditional single-family development, allowing densities of one to five units per gross acre, and five to 10 units per gross acre, respectively. ■ The "Medium/High Density" and the "High Density" categories provide for a wide range of multi-family housing opportunities at densities of 10 to 20 units per gross acre and 20 to 35 units per gross acre, respectively. In addition to the five residential categories, the Genera) Plan allows for residential uses in the "Industrial/ Residential," "Office/Commercial/Residential," "Commercial/Residential" and "Neighborhood Commercial/ Residential" land use categories. In 2013 the City undertook a focused General Plan Amendment process intended to replenish, re-allocate, and increase City-wide ofFice, commercial, hotel, and residential allocations in order to plan for anticipated future development activity while keeping with the community's character, goals, and objectives. In addition, the process aimed to capture retail sales leakage and some amount DRAFT S-�3 2040 GENERAL PLAN City of Cupertino of regional demand for ofFice and hote) development. The residential increases proposed during the process are consistent with 2040 One Bay Area Plan. None of the City's General Plan policies have been identified as housing constraints. The General Plan does not define whether residential units are to be rented or owned or whether they are to be attached or detached. The General Plan's land use policies incorporate housing goals, including the following: Policy LU-1: Focus Development in Mixed-Use Special Areas In the mixed-use Special Areas where office, commercial and residential uses are allowed, focus higher intensity development and increased building heights where appropriate in designated Special Areas, gateways and nodes. Policy LU-17: Multi-Family Residential Design Maintain a superior living environment for multi-family dwellings. Policy LU-18: Single-Family Residential Design Preserve the character of residential neighborhoods by requiring new development to be compatible with the existing neighborhood. Policy LU-19: Compatibility of Lot Sizes Ensure that zoning, subdivision, and lot line adjustment requests related to lot size or (ot design consider the need to preserve neighborhood lot patterns. �'olicy LU-22: Jobs/Housing Balance Strive for a more balanced ratio of jobs and housing units. B-7 4 DRAFT Housing Element Technical Report Appendix B The General Plan contains very few policies addressing the siting of housing, other than those pertaining to hillside and other sensitive areas. Land use policies limit development in hillside areas to protect hillside resources but allows for low-intensity residential development in the foothills. The General Plan also encourages the clustering of new development away from sensitive areas such as riparian corridors, wildlife habitat and corridors, public open space preserves and ridgelines. Thus, even in hillside and sensitive areas, the General Plan creates opportunities for housing production. Zoning Ordinance The Cupertino Zoning Ordinance establishes development standards and densities for new housing in the City. These regulations include minimum lot sizes, maximum number of dwelling units per acre, (ot width, setbacks, lot coverage, maximum building height, and minimum parking requirements. These standards are summarized in Table 4.1. As required by state law, the Zoning Map is consistent with the General Plan. The residential zoning districts and their respective permitted densities and development standards are summarized below. Residential development is permitted by right in residential zones. R-1 Single Family Residential The R-1 District is intended to create, preserve, and enhance areas suitable for detached single-family dwellings. The R-1 District includes sub-areas with varying minimum lot size requirements. Residential structures in the R-1 District are limited in size by a maximum lot coverage of 45 percent and a maximum floor area ratio of 45 percent. Setbacks are 20 feet in the front and rear yards and a combined 15 feet of side yards, with no one side yard setback less than 5 feet. The maximum building height of 28 feet allows for a wide range of single family housing types on flat terrain. DRAFT B-7 5 2040 GENERAL PLAN City of Cupertino Structures in R-1 Districts with an "i" designation at the end are limited to one story (18 feet). Two-story structures in the R-1 District require a Two- Story Residential Permit. The Director of Community Development may approve, conditionally approve, or deny applications for a two-story residential permit. Projects must be "harmonious in scale and design with the general neighborhood." . : , . - � � . � . - � . s - r. E �9�t 11 I � 4)t"y�;$�IIO Fr��}�¢�(S.�iq+�1P Y 4{ ��`S� �(r9�pi. +P��. a� � I II t���i�.� ,���4Ql�tlkl�����.����dC i�8��� p 4�� � ���� IF�I � ��I����lYl��l'rY��l1 �x��Br�� �R��i.�� I ��'� f • i• I�i� s M � N!' � f ' .i_ A 18-28 50-60 30 20 25 215,000 N/A A-1 20-28 200 30 20 20-25 43,000-215,000 40% R-1 28 60 20-25 10-15 20 5,000-20,000 45°/a 20 ft./20% lot depth, R-2 15-30 60-70 20 6-12 Whichever is greater 8,500-15,000 40% 20 ft./20% lot depth, R-3 30 70 20 6-18 Whichever is greater. 9,300 40% RHS 30 70 20-25 10-15 25 20,000-400,000 45% R-1 C 30 N/A N/A N/A N/A N/A N/A Note:Maximum number of units cannot exceed that allowed by the General Plan,pursuant to the Zoning Ordinance. Sources:Cupertino Municipal Code,2014. R-2 Residential Duplex The R-2 District is intended to allow a second dwelling unit under the same ownership as the initial dwelling unit on a site. The residential duplex district is intended to increase the variety of housing opportunities within the community while maintaining the existing neighborhood character. Minimum lot area is 8,500 square feet; building heights in this district cannot exceed 30 feet. The R-2 District limits lot coverage by all buildings to 40 percent of net lot area. B-7 6 DRAFT Housing Element Technical Report Appendix B Setbacks are 20 feet in the front yard and the greater of 20 feet and 20 percent of lot depth in the rear yard; the minimum side yard setback is 20 percent of the lot width. Structures in R-2 Districts with an "i" designation at the end are limited to one story (18 feet). The development standards for the R-2 District do not constrain the development of duplexes. The 30-foot height limit is appropriate because many R-2 zoned areas abut single-family residential development. Furthermore, 30 feet in height is sufficient for duplex development. The 40 percent maximum lot coverage has also not constrained the development of duplexes in Cupertino. None of the residential opportunity sites included in this Housing Element fall within the R-2 zone. R-3 Multi-Family Residential The R-3 District permits multi-family residential development. This District requires a minimum lot area of 9,300 square feet for a development with three dwelling units and an additional 2,000 square feet for every additional dwelling unit. The minimum lot width in the R-3 District is 70 feet, and lot coverage may not exceed 40 percent of net lot area. For single-story structures, required setbacks are 20 feet in the front yard, six feet in the side yard, and the greater of 20 feet or 20 percent of lot depth in the rear yard; the minimum side yard setback for two-story structures is nine feet. The maximum height any building is two stories and may not exceed 30 feet. This height limit is used because many R-3 districts abut single-family residential neighborhoods. Basements (fully submerged below grade except for lightwells required for light, ventilation and emergency egress, which may have a maximum exterior wall height of two feet between natural grade and ceiling) are permitted and are not counted towards the height requirements. For these reasons, the DRAFT B-77 2040 GENERAL PLAN City of Cupertino height standards in the R-3 district are not considered a constraint to housing production. Furthermore, the development standards for the R-3 District are on par with standards present in neighboring jurisdictions. The development standards for the R-3 District do not unreasonably constrain the development of multi-family housing. Multi-family residential uses are permitted uses in the R-3 District without the need for a Use Permit. Developments are able to achieve close to the maximum allowable densities under existing development standards, including the height limit and maximum lot coverage. This can be demonstrated by a back-of-the-envelope calculation of the number of developable units on a one- acre parcel. As shown in Table 4.2, the maximum density allowed on a one-acre parcel is 20 units. With a maximum lot coverage of 40 percent and assuming two stories of residential development, approximately 35,000 square feet of residentia) development can be achieved. Using conservative assumptions of 20 percent common area space and large unit sizes of 1,400 square feet, 20 units can be developed under this scenario. This analysis demonstrates that projects would be able to achieve the maximum allowable density in the R-3 District under the development standards. This Housing Element includes a strategy to monitor the development standards to facilitate a range of housing options (H E-Strategy 1). RHS Residential Hillside The RHS District regulates development in the hillsides to balance residential uses with the need to preserve the natural setting and protect life and property from natural hazards. Dwelling unit density is determined by the slope- density standards outlined in the General Plan. Minimum lot size ranges from 20,000 square feet to 400,000 square feet. B-7 8 DRAFT Housing Element Technical Report Appendix B The minimum lot width in the RHS District is 70 feet, with an exception for lots served by a private driveway and which do not adjoin a public street. Development applications in the RHS District must include topographical information, including whether the proposed structure is on or in the site line of a prominent ridgeline. The City has established a process to allow for exceptions to development requirements in the RHS zone if certain stated findings can be made. . , - � - . • - • • ��. ��. � Parcel Size (Sq. Ft.) 43,560 9,300 sq. ft. of lot area Maximum Density 20.13 for 3 units, 2,000 sq. ft. for each additional unit. Parking and circulation (sq. ft.) 19,602 Parking and circulation 45% of lot area Open space (sq.ft.) 6,534 Open space 15% of lot area Lot Coverage (sq. ft.) 17,424 Lot Coverage % 40% of lot area Residential Sq. Ft. 34,848 Stories of Residential 2 Less Common Area (hallways, (6.970 Common Area % 20% of total building stairs) area Sq. Ft. for Units 27,878 Number of Units 20 Unit Size (Sq. Ft.) 1,400 Source:City of Cupertino,2014. R-1 C Residential Single Family Cluster The purpose of the R-1 C District is to provide a means for reducing the amount of street improvements and public utilities required in residential development, to conserve natural resources, and encourage more create development DRAFT B-7 9 2040 GENERAL PLAN City of Cupertino and efFicient use of space. The owner of a property within Cupertino may submit an application for single-family residential cluster zoning or rezoning to the Planning Commission. Alternatively, the Planning Commission and/ or the City Council may initiate a public hearing to rezone specific properties to the R-1 C District. The allowable density on a parcel is determined by the existing land use designations in place prior to the rezoning. Density ranges are determined based on the relationship with and impacts to surrounding neighborhoods, streets, infrastructure and natural areas as well as the quality of design and relationship to adopted Housing Element goals. While the maximum height in the district is 30 feet, a height increase may be permitted if the City Council or Planning Commission determines that it would not have an adverse impact on the immediately adjacent neighborhood. The R-1 C District also regulates site design and private streets within the cluster. Development requirements for proposed R-1 C developments can be waived or modified, if the Planning Commission and City Council find that the site is constrained but substantially meets the zoning standards or if the proposal provides for low-moderate income and senior citizen housing. Planned Development The P district is intended to provide a means for guiding land development that is uniquely suited for planned coordination of land uses and to provide for a greater flexibility of land use intensity and design. The planned development zoning district is specifically intended to encourage variety in the development pattern of the community; to promote a more desirable living environment; to encourage creative approaches in land development; to provide a means of reducing the amount of improvements required in development through better B-80 DRAFT Housing Element Technical Report Appendix B design and land planning, to conserve natural features, to facilitate a more aesthetic and efficient use of open spaces, and to encourage the creation of public or private common open space. All P districts are identified on the zoning map with the letter P followed by a specific reference to the type of use allowed in the particular planned development district. For example, a P(Res) district allows for residential uses. Developments within a P district are generally required to comply with the height and density regulations associated with the underlying use. Beyond density and height regulations, the P district allows for a greater degree of flexibility around other development standards. The increased flexibility in the P zones allow a project to be designed to the special characteristics of a site (such as corner parcels, proximity to a creek or open space, etc) without requiring variances or exceptions. Such sites can include a combination of multiple housing types, open space and a mix of uses in a single area. Examples include the Main Street Cupertino and Rose Bowl mixed use developments. A majority of the housing sites proposed to accommodate the RHNA are located in the P district. The majority of the P districts are governed by a Specific or Conceptual Plan which provides additional guidance to facilitate development review and provide more certainty regarding community expectations. For example, the Heart of the City Specific Plan provides detailed guidelines for residential � and mixed-use developments (including orientation, design, setbacks, landscaping, bufFers, and transitions to neighboring properties). Prior to development within a P (Res/R3) district, applicants must submit a definitive development plan to the Planning Commission or City Council. Upon recommendation of the Planning Commission, the City Council reviews DRAFT B-$� 2040 GENERAL PLAN City of Cupertino larger developments, including those with eight or more residential units. Multi-family residential developments within a P(Res/R3) district are permitted uses by right. Development plans focus on site and architectural merits and typically take between two to four months to obtain approvals. The Municipal Code was amended in 2011 to clarify that the development plan for residential uses only requires a planned development permit and not a conditional use permit as residential developments are permitted uses within a P(Res) district. A Agricultural and A-1 Agricultural-Residential Agricultural zones are intended to preserve agriculture or forestry activities in areas suited to that purpose, and to include incidental residential development of a rural or semi-rural character. Single-family dwellings and residences for farmworkers and their families are permitted in the A and A-1 Districts. Minimum lot area corresponds to the number (multiplied by one thousand square feet) following the A zoning symbol. For example, A1-43 requires a minimum 43,000 square foot lot. The minimum lot size for the A District is 215,000 square feet (with or without incidenta) residential use) and 215,000 square feet for A-1 with no incidental residential use. Incidental residential uses require a minimum of 43,000 square feet per dwelling unit. The District requires setbacks of 30 feet in the front yard, 20 feet in the side yards, and 20-25 feet in the rear yard. The maximum building height of 28 feet allows for a wide range of single family housing types on flat terrain. Structures in the A District with an "i" designation at the end are limited to one story (18 feet). Other Districts In addition to the districts discussed above, limited residential uses are allowed in other zoning districts. Often B-8 2 DRAFT Housing Element Technical Report Appendix B the housing in these non-residential districts is limited to housing for farmworkers, employees, or caretakers. The permitted residential uses in non-residential districts are discussed below. ML Light Industrial Residential dwellings for caretakers or watchmen are permitted for those employed for the protection of the principal light industrial permitted use. The residential dwellings must be provided on the same lot as the principal permitted use. PR Park and Recreation The PR District regulates publicly owned parks within the City. Single-family residences for the purpose of housing a caretaker for the park are permitted in this District. A caretaker is defined as a person who maintains surveillance of the park areas during and after the hours of park operation. The residence may take the form of a mobile home or a permanent residential structure. Heart of the City The Heart of the City Specific Plan provides specific development guidance for one of the most important commercial corridors in the City of Cupertino. This Specific Plan is intended to carefully guide development, with the purpose of creating a clear sense of place and community identity in Cupertino. The Specific Plan contains streetscape design, development standards and design guidelines for multi-unit residential and commercial/office projects. Any new residential development within the Heart of the City Specific Plan area is required to include a nonresidential component (that is, horizontal or vertical mixed use is required if residential uses are proposed). For mixed use developments in the Heart of the City Specific Plan area, DRAFT B-$3 2040 GENERAL PLAN City of Cupertino residential development density calculations are required to be based on net density, excluding parking and/ or land areas devoted to the commercial portion of the development. This requirement can significantly reduce the number of units a proposed project may provide, and may constrain new development, although it wil) forward City goals for balanced and complementary land uses. Parking Excessive parking requirements may serve as a constraint of housing development by increasing development costs and reducing the amount of land available for project amenities or additional units. OfF-street residential parking requirements vary by zone. As shown in Table 4.3, the parking ratio ranges from two parking spaces per dwelling unit to four spaces per dwelling unit. . , • - � • Single-Family R-1, RHS, A-1, P 4/ DU (2 garage, 2 open) Small Lot Single-Family, Townhouse P 2.8 / DU (2 garage, 0.8 open) Duplex R-2 3 / DU (1.5 enclosed, 1.5 open) High Density Multi-Family R-3, P 2 / DU (1 covered, 1 open) Sources:Cupertino Zoning Ordinance,2014. Cupertino's parking requirements are higher than many other jurisdictions, particularly for single-family homes. Given the high cost of (and and parking, the high parking standards may serve as a constraint to housing provision, although projects are able to attain the maximum permitted density even with these parking requirements. The Zoning Ordinance does not include parking reductions for senior housing, affordable housing, or group homes, unless State Density Bonus law applies, in which case reductions are available for senior housing and projects that include affordable housing. Often, vehicle ownership among B-84 DRAFT Housing Element Technical Report Appendix B elderly and lower-income households is lower than other populations, making reductions in parking requirements appropriate. As established in HE-Strategy 11 of this Housing Element, the City will offer a range of incentives to facilitate the development of affordable housing, including parking standards waivers. The Zoning Ordinance allows for shared parking in mixed-use developments. For example, residential projects with a retail or commercial component will have a lower parking requirement because residential users may use some retail parking spaces in the evening. The Zoning Ordinance provides a formula for calculating the parking reduction in mixed-use developments. In addition, the Planning Commission or City Council may allow further reduction in the parking requirement as part of a use permit development plan or parking exception based on shared parking arrangements, parking surveys, and parking demand management measures. According to interviews conducted as part of the Housing Element update in 2013, market-rate and non- profit developers perceive policies and regulations such as parking requirements, height limits, and variances for density as barriers to developing and adding units to the market. One interviewee noted that Cupertino's parking requirements are relatively stringent compared to other cities on the Peninsula that are moving towards more flexibility and lower requirements. To address this concern, the City offers reduced parking requirements as incentives to facilitate affordable housing (HE-Strategy 11) and will update the Density Bonus Ordinance (HE-Strategy 12) to allow for one to three regulatory concessions that would result in identifiable cost reductions and which are needed to make proposed housing affordable. DRAFT B-$5 2040 GENERAL PLAN City of Cupertino Provisions for a Variety of Housing Types Housing element law specifies that jurisdictions must identify adequate sites through appropriate zoning and development standards to encourage the development of various types of housing. This includes single- and multi- family housing, homeless shelters, group homes, supportive and transitiona) housing, SROs, mobile and manufactured homes, among others. Homeless Shelters The Zoning Ordinance allows for "rotating homeless shelters" in the Quasi Public Building (BQ) zone. Rotating homeless shelters are permitted within existing church structures in the BQ zone for up to 25 occupants. The operation period of rotating shelters cannot exceed two months in any one-year span at a single location. Permanent emergency shelter facilities are permitted in the BQ zone if the facility meets the same conditions of rota ting homeless shelters above and if occupancy is limited to six months or fewer. The City will revise the Zoning Ordinance concurrent with this Housing Element Update to (1) remove the requirement that permanent emergency shelters be located in church structures; (2) eliminate requirements related to restricted hours of operation for permanent emergency shelters; and (3) add the requirement that a management plan must be submitted to the City prior to shelter operation (H E-Strategy 22). Group Homes and Transitional and Supportive Housing Pursuant to state law, licensed residential care facilities for six or fewer residents are permitted by right in all residential districts (including A, A-1, R-1, R-2. R-3, RHS, R-1 C). Licensed small group homes are not subject to special development requirements, policies, or procedures which would impede such uses from locating in a residential B-$� DRAFT Housing Element Technical Report Appendix B district. Furthermore, small group homes (with six or fewer persons) with continuous 24-hour care are permitted by right in all residential districts. Transitional and supportive housing is treated as a residential use and subject only to those restrictions that apply to other residential uses in the same zone. Large group homes (with more than six residents) are conditionally permitted uses in the R-1 District, subject to Planning Commission approval. Single-Room Occupancy Units (SROs) SRO units are one-room units intended for occupancy by a single individual. They are distinct from a studio or efficiency unit, in that a studio is a one-room unit that must contain a kitchen and bathroom. Although SRO units are not required to have a kitchen or bathroom, many SROs have one or the other. The Cupertino Zoning Ordinance does not contain specific provisions for SRO units. SRO units are treated as a regular multi-family use, subject to the same restrictions that apply to other residential uses in the same zone. Manufactured Housing Manufactured housing and mobile homes can be an affordable housing option for low- and moderate-income households. According to the Department of Finance, as of 2013, there are no mobile homes in Cupertino. Pursuant to State law, a mobile home built after June 15, 1976, certified under the National Manufactured Home Construction and Safety Act of 1974, and built on a permanent foundation may be located in any residential zone where a conventional single-family detached dwelling is permitted subject to the same restrictions on density and to the same property development regulations. DRAFT 8-87 2040 GENERAL PLAN City of Cupertino Farmworker and Employee Housing The City currently permits farmworker housing in Agricultural (A) and Agricultural Residential (A-1) Districts. Farmworker housing is allowed for workers and their families whose primary employment is incidental and necessary to agricultura) operations conducted on the same parcel of land on which the residences are located. However, farmworker housing is not specifically defined in the Zoning Ordinance. Pursuant to the State Employee Housing Act, any employee housing consisting of no more than 36 beds in a group quarters or 12 units or spaces designed for use by a single family or household shall be deemed an agricultural land use. No conditional use permit, zoning variance, or other zoning clearance shall be required of this employee housing that is not required of any other agricultural activity in the same zone. The permitted occupancy in employee housing in a zone allowing agricultural uses shall include agricultural employees who do not work on the property where the employee housing is located. The Employee Housing Act also specifies that housing for six or fewer employees be treated as a residential use. The City wil) amend the Zoning Ordinance to be consistent with the State Employee Housing Act. Second Dwelling Units A second dwelling unit is an attached or detached, self- contained unit on a single-family residential lot. These units are often afFordable due to their smaller size. To promote the goal of affordable housing within the City, Cupertino's Zoning Ordinance permits second dwelling units on lots in Single-Family Residential (R-1), Residential Hillside (RHS), Agricultural (A), and Agricultural Residential (A-1) Districts. Second dwelling units on lots of 10,000 square feet or more may not exceed 800 square feet, while units on lots smaller than 10,000 square feet cannot exceed 640 square 6-8 8 DRAFT Housing Element Technical Report Appendix B feet. All second dwelling units must have direct outside access without going through the principal dwelling. If the residential (ot encompasses less than 10,000 square feet, the second dwelling unit must be attached to the principal dwelling unless otherwise approved by the Director of Community Development through Architectural Review. Second dwelling units are subject to an architectural review by the Director of Community Development. The design and building materials of the proposed second unit must be consistent with the principal dwelling. In addition, the second dwelling unit may not require excessive grading which is visible from a public street or adjoining private property. The architectural review is done at the ministerial (building permit) level and is intended to ensure that the second unit is consistent with the architecture, colors, and materials of the primary house. One additional off-street parking space must be provided if the principal dwelling unit has less than the minimum off- street parking spaces for the residential district in which it is located. Second dwelling units must also comply with the underlying site development regulations specified by the zoning district. Density Bonus The City's Density Bonus Ordinance (Chapter 20.305 of the Municipal Code) has not yet been updated to reflect changes in State law included in SB 1818 and other density bonus bills. Under those statutes, cities and counties are required to grant a density bonus of up to 35 percent and one to three incentives or concessions to housing projects which contain one of the following: ■ At least 5% of the housing units are restricted to very low income residents DRAFT B-$9 2040 GENERAL PLAN City of Cupertino ■ At least 10% of the housing units are restricted to lower income residents ■ At least 10% of the housing units in a for-sale common interest development are restricted to moderate income residents A density bonus, but no incentives or concessions, must be granted to projects that contain one of the following: ■ The project donates at least one acre of land to the city or county large enough for 40 very low income units, the land has the appropriate general plan designation, zoning, permits and approvals, and access to public facilities needed for such housing, funding has been identified, and other requirements are met ■ The project is a senior citizen housing development (no affordable units required) ■ The project is a mobile home park age restricted to senior citizens (no affordable units required) HE-Strategy 12 in the Housing Plan commits the City to updating the Density Bonus Ordinance concurrent with the Housing Element update. Site Improvement Requirements Residential developers are responsible for constructing road, water, sewer, and storm drainage improvements on new housing sites. Where a project has off-site impacts, such as increased runoff or added congestion at a nearby intersection, additional developer expenses may be necessary to mitigate impacts. These expenses may be passed on to consumers. Chapter 18 of the Cupertino Municipal Code (the Subdivision Ordinance) establishes the requirements for new subdivisions, including the provision of on- and off-site B-9 0 DRAFT Housing Element Technical Report Appendix B improvements. The ordinance requires that subdivisions comply with frontage requirements and stormwater runoff be collected and conveyed by an approved storm drain system. Furthermore, each unit or lot within the subdivision must be served by an approved sanitary sewer system, domestic water system, and gas, electric, telephone, and cablevision facilities. All utilities within the subdivision and along peripheral streets must be placed underground. Common residential street widths in Cupertino range from 20 feet (for streets with no street parking) to 36 feet (for those with parking on both sides). The City works with developers to explore various street design options to meet their needs and satisfy public safety requirements. Developers are typically required to install curb, gutters, and sidewalks, however, there is a process where the City Council can waive the requirement. The City prefers detached sidewalks with a landscaped buffer in between the street and the pedestrian walk to enhance community aesthetics and improve pedestrian safety. However, the City does work with developers to explore various frontage improvement options depending on the project objectives, taking into consideration factors such as tree preservation, land/design constraints, pedestrian safety, and neighborhood pattern/compatibility. This is especially true in Planned Development projects, where the City works with the developer to achieve creative and flexible street and sidewalk designs to maximize the project as well as community benefits. The Subdivision Ordinance also includes land dedication and fee standards for parkland. The formula for dedication of park land for residential development is based on a standard of three acres of parkland per 1,000 persons. The developer must dedicate parkland based on this formula or pay an in lieu fee based on the fair market value of the land. DRAFT B-9 1 2040 GENERAL PLAN City of Cupertino In addition to parkland dedication, the City Council may require a subdivider to dedicate lands to the school district(s) as a condition of approval of the final subdivision map. If school site dedication is required and the school district accepts the land within 30 days, the district must repay the subdivider the original cost of the dedicated land plus the cost of any improvements, taxes, and maintenance of the dedicated land. If the school district does not accept the offer, the dedication is terminated. The developer may also be required to reserve land for a park, recreational facility, fire station, library, or other public use if such a facility is shown on an adopted specific plan or adopted general plan. The public agency benefiting from the reserved land shall pay the developer the market value of the land at the time of the filing of the tentative map and any other costs incurred by the developer in the maintenance of the area. The ordinance states that the amount of land to be reserved shall not make development of the remaining land held by the developer economically unfeasible. The City of Cupertino's site improvement requirements for new subdivisions are consistent with those in surrounding jurisdictions and do not pose a significant constraint to new housing development. Building Codes and Code Enforcement The City of Cupertino has adopted the 2013 Edition of the California Building Code, the 2013 California Electrical Code and Uniform Administrative Code Provisions, the International Association of Plumbing Officials Uniform Plumbing Code (2013 Edition), the California Mechanical Code 2013 Edition, and the 2013 California Fire Code and the 2013 Green Building Standard Code. The City also enforces the 1997 Edition of the Uniform Housing Code, the 1998 Uniform Code for Building Conservation, and the 1997 B-92 DRAFT Housing Element Technical Report Appendix B Uniform Code for the Abatement of Dangerous Buildings Code. Cupertino has adopted several amendments to the 2013 California Building Code. The City requires sprinkler systems for new and expanded one- and two-family dwellings and townhouses; underhanging appendages enclosed with fire-resistant materials; roof coverings on new buildings and replacement roofs complying with the standards established for Class A roofing, the most fire resistant type of roof covering. The amendments also establish minimum standards for building footings, seismic reinforcing on attached multi-family dwellings, and brace wall panel construction. These amendments apply more stringent requirements than the California Building Code. The California Building Code and the City's amendments to it have been adopted to prevent unsafe or hazardous building conditions. The City's building codes are reasonable and would not adversely affect the ability to construct housing in Cupertino. The City's code enforcement program is an important tool for maintaining the housing stock and protecting residents from unsafe or unsightly conditions. The Code Enforcement Division is responsible for enforcing the provisions of the Cupertino Municipal Code and various other related codes and policies. Code Enforcement Division staff work to achieve compliance through intervention, education, and enforcement, partnering with the community to enforce neighborhood property maintenance standards. Code Enforcement staff investigate and enforce City codes and State statutes based on complaints received. Violation of a code regulation can result in a warning, citation, fine, or legal action. If a code violation involves a potential emergency, officers will respond immediately; otherwise, Code Enforcement staff responds to complaints through scheduled inspections. The City has had to declare only DRAFT B-93 2040 GENERAL PLAN City of Cupertino three units unfit for human occupancy since 2007 and most complaints are resolved readily. Code Enforcement activities are not considered a constraint to development of housing in Cupertino. Constraints for Persons with Disabilities California Senate Bill 520 (SB 520), passed in October 2001, requires local housing elements to evaluate constraints for persons with disabilities and develop programs which accommodate the housing needs of disabled persons. Procedures for Ensuring Reasonable Accommodation Both the federal Fair Housing Act and the California Fair Employment and Housing Act impose an affirmative duty on cities and counties to make reasonable accommodations in their zoning and land use policies when such accommodations are necessary to provide equal access to housing for persons with disabilities and do not impose significant administrative or financial burdens on local government or undermine the fundamental purpose of the zoning law. Reasonable accommodations refer to modifications or exemptions to particular policies that facilitate equal access to housing. Examples include exemptions to setbacks for wheelchair access structures or to height limits to permit elevators. The City of Cupertino adopted an ordinance in April 2010 for people with disabilities to make a reasonable accommodations request. Chapter 19.25 provides a procedure to request reasonable accommodation for persons with disabilities seeking equal access to housing under the Federal Fair Housing Act, the Federal Fair Housing Amendments Act of 1988, and the California Fair Employment and Housing Act. Zoning and Other Land Use Regulations In conformance to state law, licensed residential care facilities for six or fewer residents are permitted by right B-9 4 DRAFT Housing Element Technical Report Appendix B in all residential districts (including A, A-1, R-1, R-2. R-3, RHS, R-1 C). Licensed small group homes are not subject to special development requirements, policies, or procedures which would impede such uses from locating in a residential district. Furthermore, small group homes (with six or fewer persons) with continuous 24-hour care are permitted by right in all residential districts, as are transitional and supportive housing. Large group homes (with more than six residents) are conditionally permitted uses in the R-1 District, subject to Planning Commission approval. The Zoning Ordinance contains a broad definition of family.A family means an individual or group of persons living together who constitute a bona fide single housekeeping unit in a dwelling unit. Families are distinguished from groups occupying a hotel, lodging club, fraternity or sorority house, or institution of any kind. This definition of family does not limit the number of people living together in a household and does not require them to be related. Building Codes and Permitting The City's Building Code does not include any amendments to the California Building Code that might diminish the ability to accommodate persons with disabilities. Below Market Rate Mitigation Program The City's BMR Residential Mitigation Program requires all new residential developers to either provide below market rate units or pay a mitigation fee, which is placed in the City's Below Market-Rate (BMR) Affordable Housing Fund (AHF). The BMR Mitigation Program is based on a nexus study prepared by the City that demonstrated that all new developments create a need for affordable housing. Under this program, developers of for-sale housing where units may be sold individually must sell at least 15 percent of DRAFT B-9 5 2040 GENERAL PLAN City of Cupertino units at a price affordable to median- and moderate-income households. Projects of seven or more units must provide on-site BMR units. Developers of projects of six units or fewer can either build a unit or provide pay the Housing Mitigation fee. To be consistent with recent court decisions and the State Costa-Hawkins Act regarding rent control, the City modified the BMR Mitigation Program so that developers of market- rate rental units, where the units cannot be sold individually, pay the Housing Mitigation fee to the Affordable Housing Trust Fund. In 2014, the fee was $3.00 per square foot on residential. The BMR Office and Industrial Mitigation Program also acknowledges housing needs created by the development of office and industrial projects and provide fees to support the development of affordable housing. In 2014, the fee was $6.00 per square foot on office/industrial, hotel, and retail, and 3.00 per square foot in the Planned Industrial zone. 4 Although concerns exist that inclusionary housing programs like Cupertino's BMR Mitigation Program may constrain production of market rate homes, studies have shown evidence to the contrary. The cost of an inclusionary housing requirement must ultimately be borne by either: 1) developers through a lower return, 2) landowners through decreased land values, or 3) other homeowners through higher market rate sale prices. In fact, the cost of inclusionary housing and any other development fee "will always be split between all players in the development process."5 FF FF However, academics have pointed out that, over the long term, it is probable that landowners will bear most of the costs of inclusionary housing, not other 4 The housing mitigation fee is updated periodically. Developers should check with the Community Development Department for the most current fee amount. 5 W.A.Watkins. "Impact of Land Development Charges." Land Economics 75(3). 1999. B-96 DRAFT Housing Element Technical Report Appendix B homeowners or the developer.6 In addition, a 2004 study on housing starts between 1981 and 2001 in communities throughout California with and without inclusionary housing programs evidences that inclusionary housing programs do not lead to a decline in housing production. In fact, the study found that housing production actually increased after passage of local inclusionary housing ordinances in cities as diverse as San Diego, Carlsbad, and Sacramento.� Recognizing the need for a financially feasible program that does not constrain production, some jurisdictions allow developers to pay a fee for all units, regardless of project size. As discussed previously, Cupertino's BMR Mitigation Program requires large for-sale developments (with seven or more units) to provide units. A 2009 courtcase (Palmer v. the City of Los Angeles) has resulted in cities suspending or amending the portion of their Housing Mitigation program requiring affordable units to be included in market rate rental developments. There also have been a number of court cases related to affordable housing requirements (decided and those that are still being litigated). Due to uncertainty regarding the legal standard applicable to affordable housing requirements, the Governor vetoed an Assembly Bill (AB 1229) which aimed to reverse the decision in the Palmer case. Currently pending in the California Supreme Court is a challenge to the City of San Jose's inclusionary ordinance. The Building Industry Association asserts that all programs requiring affordable housing, whether for sale or for rent, must be justified by a nexus study showing that the affordable housing requirement is "reasonably related" 6 Mallach,A."Inclusionary Housing Programs: Policies and Practices." New Brunswick, NJ:Center for Urban Policy Research, Rutgers University. 1984. Hagman, D. "Taking Care of One's Own Through Inclusionary Zoning: Bootstrapping Low- and Moderate-Income Housing by Local Government," Urban Law and Policy 5:169- 187. 1982. Ellickson, R. 1985. "Inclusionary Zoning:Who Pays?" Planning 51(8):18-20. 7 David Rosen. "Inclusionary Housing and Its Impact on Housing and Land Markets." NHC Affordable Housing Policy Review 1(3).2004. DRAFT B-9� 2040 GENERAL PLAN City of Cupertino to the impacts of the project on the need for affordable housing. In a previous California Supreme Court case, Sterling Park v. City of Palo Alto, the Court ruled that affordable housing requirements were a type of exaction that could be challenged under the protest provisions of the Mitigation Fee Act. The City of Cupertino has long justified its Housing Mitigation program as based on the impacts of market rate housing on the need for affordable housing and continues to require rental housing developments to pay a mitigation fee. However, the fee is based on an older nexus study. The City intends to update its nexus study on the BMR mitigation fees by the end of 2016 to determine appropriate housing mitigation fees (HE-Strategy 8). Park Impact Fees The City assesses park impact fees for new residential development. The fee ranges from $8,100 per unit of high density residential development (at 20 dwelling units per acre or more) and for apartments with ten or more units to $15,750 per single-family unit (where the density is 0 to 5 units per acre). Park impact fees for senior/elderly housing is $4,500 per unit. Cupertino's park fees are comparable to or lower than similar requirements established in other Santa Clara County jurisdictions. Mountain View and San Jose require park land dedication or the payment of a park in-lieu fee. The in-lieu fee in both cities is based on fair market value of the land. San Jose's park fees for single-family detached units ranged from approximately $15,000 to $38,550, depending on building square footage and the area of the city. Park fees for multi-family units in San Jose ranged from $7,650 to $35,600, depending on location and the size of the development. In Mountain View, park in-lieu fees are approximately $25,000 for each residential unit, B-98 DRAFT Housing Element Technical Report Appendix B depending on the value of the land. The City of Palo Alto's park dedication requirements vary depending on whether the project involves a subdivision or parcel map, and also depending on the size of the unit. Palo Alto collects $10,638-$15,885 per single-family unit and $3,521-$6,963 per multi-family unit. Fees and Exactions Like cities throughout California, Cupertino collects development fees to recover the capital costs of providing community services and the administrative costs associated with processing applications. New housing typically requires payment of school impact fees, sewer and water connection fees, building permit fees, wastewater treatment plant fees, and a variety of handling and service charges. Typical fees collected are outlined in Table 4.4. The total cost of permits, city fees, and other professional services fees (such as project-specific architecture and engineering designs and schematics) has been estimated to equate to 20 percent of construction costs, or approximately 10 percent of total project costs. The Bay Area Cost of Development Survey 2010-2011 conducted by the City of San Jose surveyed six jurisdictions in the region with sample development projects to determine associated entitlement, construction, and impact fees. For a multi-family development, total fees identified by this survey ranged from $4,841 per unit for the County of Santa Clara to $42,183 per unit for the City of Palo Alto. These fees have likely increased since the time of the survey, and therefore a conservative indication that Cupertino's fees (estimated at $20,275 for a similar building type) are consistent with, and often less than, fees in surrounding jurisdictions. DRAFT B-9 9 2040 GENERAL PLAN City of Cupertino • , , 1i � • ,w �. '� �u� � i iaa�y�u��a�������§�,�Oi'����'��}���� I � pP��� � x � #����,���� •�� �����i ��j�' N{�NP� � #' f i �• i4�u'�i4,�4����, Sanitary Connection $�6 permit fee or $77.50 with Permit (d) backflow plus additional $300 $376 $378 $378 inspection fee Fees based on construction Water Main Existing costs with large variation depen- Facilities Fee (e) dent on fire safety requirements ��,000 $6,900 $2,300 and size of water line. Parcel Map (1-4 lots) - $7,461 N/A N/A N/A Planning Fee Tract Map (> 4 lots) - $15,974 $1,597 $1,597 N/A Planning Fee Residential Design Review/Architectural $2,400/$7,461 $2,400 $746 $149 and Site Approval Development Permit $15,974 $1,597 $1,597 $319 Fee Parcel Map (1-4 lots)- $4,254 N/A N/A N/A Engineering Fee Tract Map (> 4 lots) - $g,g31 $883 $883 N/A Engineering Fee Engineering Plan $736 $368 $124 Review Fee Grading Permit Fee $750 $350 $601 Master Storm Varies $906 $555 $378 Drainage Area Fee Storm Management $715 $71.50 $71.50 $71.50 Plan Fee Park Impact Fee Varies by density $15,750 $9,000 $8,100 Housing Mitigation $3.00/Sq. Ft. $6,000 $4,800 $4,200 In-Lieu Fee Cupertino Union $2,02 / Sq. Ft. $4,040 $3,232 $2,828 School District Fee Fremont Union High $1.34 / Sq. Ft. $2,680 $2,144 $1,876 School District Fee Plan Check and Inspection $655 $655 $655 $655 (Engineering) Building Permit Fee (f) Based on scope of project $7,409 $6,473 $2,121 Total $52,851 $39,750 $24,101 Notes: (a)Fees estimated for a 3,150 square foot, 3 bedroom home in a 10 unit subdivision with 7,000 sq. ft. lots over 2 acres. (b)Fees estimated for a 2,200 square foot, 3 bedroom/2.5 bathroom townhouse in a 10 unit subdivision over one acre. (c)Fees estimated for a 50 unit apartment development with 1,680 gross square foot(1,400 net),2 bedroom apartment units over 2.2 acres (d)Average of fees charged in the four Cupertino Sanitary District zones. (e)Connectiom fee for San Jose Water, which serves the largest area of Cupertino. Cal Water and Cupertino Municipal also serve parts of the City. (fl Includes all fees payable to the Building Department. Includes Plan check and standard inspection fees, and Construction Tax. Sources:City of Cupertino,2014;San Jose Water,2014;Cupertino Sanitary District,2014;MIG 2014 B-100 DRAFT Housing Element Technical Report Appendix B Permit Processing The entitlement process can impact housing production costs, with lengthy processing of development applications adding to financing costs, in particular. Planning Commission and City Council Approvals The Planning Commission and City Council review applications for zoning amendments and subdivision approvals. The Planning Commission holds a public hearing about proposed zoning changes or subdivisions and makes a recommendation to the City Council to approve, conditionally approve, or deny the application. Upon receipt of the Planning Commission's recommendation, the City Council holds a public hearing before making a final decision on the proposed zoning change or subdivision. Local developers have noted that the entitlement process in Cupertino can be a time consuming and protracted process. While the active populous may add complexity to the entitlement process, Cupertino values public outreach and is committed to development of community leadership, local partnershiPs, an active populace and making government more accessible and visible to residents. Design Review Cupertino has not adopted citywide residential design guidelines. However, all Planned Development Zoning Districts, the R1 District, RHS District, the Heart of the - City Specific Plan Area, and the North De Anza Boulevard Conceptual Plan Area are subject to design guidelines. These design guidelines pertain to features such as landscaping, building and roof forms, building entrances, colors, outdoor lighting, and building materials. The design guidelines are intended to ensure development is consistent with the existing neighborhood character and do are C7RAFT B-1 01 2040 GENERAL PLAN City of Cupertino generally not considered significant constraints to housing production. The Heart of the City Specific Plan design guidelines are intended to promote high-quality private-sector development, enhance property values, and ensure that both private investment and public activity continues to be attracted to the Stevens Creek Boulevard Special Area. Design guidelines promote retention and development viability of single-family residential sized lots in the transition area between Stevens Creek Boulevard fronting development and single-family neighborhoods. The City requires design review for certain residential developments to ensure that new development and changes to existing developments comply with City development requirements and policies. These include: ■ Variances in the R-1 District ■ Two-story residential developments in the R-1 District where second floor to first floor area ration is greater than 66 percent and/or where second story side yard setback(s) are less than 15 feet to a property line ■ Two-story addition, new two-story home, and/or second story deck in the R1-a zone ■ Any new development or modifications in planned development residential or mixed-use residential zoning d i stri cts, ■ Single-family homes in a planned development residential zoning district ■ Modifications to buildings in the R1 C or R-2 zoning districts ■ Signs, landscaping, parking plans, and modifications to buildings in the R-3 zoning district B-1 0 2 DRAFT Housing Element Technical Report Appendix B The City has detailed Two-Story Design Principles incorporated in the R-1 District. These design principles help integrate new homes and additions to existing homes with existing neighborhoods by providing a framework for the review and approval process. Two-story homes with a second story to first floor ratio greater than 66 percent and homes with second story side setbacks less than 15 feet must offset building massing with designs that encompass higher quality architectural features and materials. Design Review may occur at the StafF or Design Review Committee level, depending on the scope of the project. Staff and the Design Review Committee, consisting of the Planning Commission Vice Chair and one other Planning Commissioner, consider factors such as building scale in relation to existing buildings, compliance with adopted height limits, setbacks, architectural and landscape design guidelines, and design harmony between new and existing buildings to determine design compliance. Processing Time Table 4.5 presents the typical permit processing time for various approvals in Cupertino. As shown, actions requiring ministerial review are usually approved within two to four weeks. Other approvals have longer processing time frames. Developments requiring multiple approvals involve joint applications and permits that are processed concurrently. Al) approvals for a particular project are reviewed in a single Planning Commission and/or City Council meeting. The typical permit processing times in Cupertino are similar to or lower than those in other jurisdictions and do not pose a major constraint to new development in the City. DRAFT B-1 0 3 2040 GENERAL PLAN City of Cupertino . � . . • - � s^ • • •• • • + ' s ' Ministerial Review 2-4 weeks Two-Story Residential Permit 2-3 months Conditional Use Permit 2-4 months Zoning Change 4-6 months General Plan Amendment 4-b months Architectural and Site Review 2-4 months Design Review 2-3 months Tentative or Parcel Map 2-4 months Initial Environmental Study 2 months Negative Declaration 3-6 months Environmental Impact Report 9-15 months Notes: (a)Processing time accounts for time involved in the preliminary consultation and/or conceptual review phase Applications for multiple approval typ es may be processed concurrently. Processing time would depend on time required to prepare environmental documents. Sources:City of Cupertino,2014 Cupertino is able to process applications in a timely manner because City staff works closely with applicants during a pre-application process. The pre-application is free of charge and its duration may vary depending on the completeness and/or the complexity of the project. Typical pre-application process may consist of the following: ■ Initial preliminary consultation with property owners/ developers to go over project objectives and City development standards ■ Submittal and review of conceptual development plans ■ Preliminary consultations with relevant City departments (i.e., Fire, Building, Public Works) as deemed necessary ■ Submittal and review of pre-submittal materials and final plans B-1 0 4 DRAFT Housing Element Technical Report Appendix B • , . � • • � • ���t��� „ � �.���� �. �. �A �.� �. m ��� r.� M �� Single-Family One-Story Building Permit 2-4 weeks (No Planning Permit required) One-Story(Minor Residential or Minor Residential Permit/ R1 Exception 1-2 months Exception Permit required) Two-Story Two-Story Permit 2-3 months Residential Hillside (no Building Permit 2-6 weeks Exception) Residential Hillside (with Hillside Exception 2-3 months Exception) Subdivision < 5 units Tentative Parcel Map 2-3 months >_ 5 units Tentative Subdivision Map 3-4 months Multi-Family— R2, R3 No re-zoning Development Permit, Architectural Site 2_3 months Approval <5 parcels Tentative Parcel Map 2-3 months >_5 parcels Tentative Subdivision Map 3-4 months Rezoning Application Development Permit, Architectural Site Re-zoning Approval 4-6 months Tentative or Parcel Map (depending on number of parcels) Multi-Family— PD Development Permit No re-zoning Architectural Site Approval 3-4 months Tentative or Parcel Map Zoning change Development Permit Re-zoning 4-b months Architectural Site Approval Tentative or Parcel Map *May vary based on on level of Environmental Review required. DRAFT B-105 2040 GENERAL PLAN City of Cupertino Table 4.6 summarizes the typical approvals required for various housing types. One-story single-family homes in properly zoned areas do not require approvals from the Community Development Department. However, two-story single-family homes require a two-story permit, which are approved by the Director of the Community Development Department and take two to three months to process. Residential subdivisions require a tentative parcel map or tentative subdivision map, depending on the number of units in the development, and take two to four months to receive approvals. Multi-family residential developments in R3 or Planned Development (PD) Districts are typically approved in two to four months. Building Permit Standard plan check and building permit issuance for single-family dwellings in Cupertino takes approximately 10 business days. Plan checks for large additions, remodels, and major structural upgrades for single-family homes are also processed within 10 days. If a second review is necessary, the City will take approximately five business days to complete the review. Prior to the final building permit inspection for two-story additions and new two-story homes, applicants must submit a privacy protection plan, which illustrates how views into neighboring yards second story windows will be screened by new trees and/or shrubs. The plan check process may take longer for projects which entail off-site street improvements. Over-the-counter plan checks are available for small residential projects (250 square feet or less). Building Department staff typically review these projects in less than 30 minutes during normal business hours. In addition, an express plan check is offered for medium-sized residential projects (500 square feet or less) and takes approximately five days. Plan review can take from four weeks to several B-1 0 6 DRAFT Housing Element Technical Report Appendix B months for larger projects, depending on the size. Examples of this type of plan check include apartments and single-family residential subdivisions over 10 units. Cupertino's building permit procedures are reasonable and comparable to those in other California communities. Tree Preservation The City of Cupertino has a Protected Tree Ordinance that is intended to preserve trees for their environmental, economic and aesthetic importance. The City seeks to retain as many trees as possible, consistent with the individual rights to develop, maintain, and enjoy their property. The ordinance protects heritage trees, which are identified as significant for their historic value or unique characteristics, and certain trees that have a minimum single-trunk diameter of 10 inches or a minimum multi-truck diameter of 20 inches when measured at 4.5 feet from natural grade. These trees include native oak tree species, California Buckeye, Big Leaf Maple, Deodar Cedar, Blue Atlas Cedar, Bay Laurel or California Bay, and Western Sycamore trees. Trees protected by this ordinance may not be removed from private or public property without first obtaining a tree removal permit. Applications for tree removal permits are reviewed by the Community Development Director. The Director may approve, conditionally approve, or deny applications. In some cases, the City may require tree replacement as a condition of permit approval. Because a (arge share of residential development in Cupertino involves infill development involving demolition and replacement, building footprints are often already in place and tree preservation issues do not often arise as a major concern to developers. DRAFT B-1 0 7 2040 GENERAL PLAN City of Cupertino 4.2 Economic and Market Constraints In addition to governmental constraints, non-governmental factors may constrain the production of new housing. These could include economic and market related conditions such as land and construction costs. Availability of Financing While the housing market has rebounded since the recession that began in 2008, many developers still face difficulty securing project financing. In interviews completed as part of the Housing Element update process in 2013, it was stated that small developers in particular still have trouble, and some lenders do not understand how to finance mixed-use development. Project Funding In stakeholder interviews in late 2013, affordable housing developers and service providers discussed the hardships caused by the dissolution of the Redevelopment Agencies. This action eliminated a major source of funding for affordable housing, and that these funds have not yet been replaced by other tools. Federal and state funding sources (including Sections 202 and 811) have been eliminated or reduced so there is greater reliance on local sources. Land Availability and Costs Land costs in Cupertino are very high due to high demand and extremely limited supply of available land. Cupertino has seen a number of smaller detached infill housing projects where single-family homes are constructed on remnant lots or lots that have previously been developed with older homes. Multi-family development often requires lot consolidation and/or removing existing uses. A review of available real estate listings indicated one residentially zoned vacant property for sale as of May2014. This 0.22 acre property is zoned P(R-3) and had a listed price of B-1 0 8 DRAFT Housing Element Technical Report Appendix B $1,095,000. Based on this listing, an acre of residentially zoned land could be listed at close to $5 million. Construction Costs Construction costs vary significantly depending on building materials and quality of finishes. Parking structures for multi-family developments represent another major variable in the development cost. In general, below-grade parking raises costs significantly. Soft costs (architectural and other professional fees, land carrying costs, transaction costs, construction period interest, etc.) comprise an additional 10 to 40 percent of the construction and land costs. Owner-occupied multi-family units have higher soft costs than renter-occupied units due to the increased need for construction defect liability insurance. Permanent debt financing, site preparation, ofF-site infrastructure, impact fees, and developer profit add to the total development cost of a project. Construction costs run about $100 per square foot for Type 5 construction (wood and stucco over parking) for multi-family units and $110 per square foot for single family units8. Residential developers indicate that construction costs in the Bay Area may far exceed these national averages, and can reach $200 per square foot for larger (four- to six-story) developments. Key construction costs have risen nationally in conjunction with economic recovery and associated gains in the residential real estate market. Figure B-6 illustrates construction cost trends for key materials based on the Producer Price Index, a series of indices published by the U.S. Department of Labor Bureau of Labor Statistics that measures the sales price for specific commodities and products. Both steel and lumber prices have risen sharply since 2009, as have finished construction products. 8 International Code Council Building Valuation Data for Type V construction, February 2014 DRAFT B-109 2040 GENERAL PLAN City of Cupertino Figure B-5 Producer Price Index for Key Construction Costs Producer Price index: Steel and Lumber '40 x � 20 c — '00 a� '� 80 Steel � �, 60 Lumber u � 40 0 a 20 .00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year Producer Price Index: Steel and Lumber 240 � 220 � c 200 u 180 Steel 'L n- 160 Lumber a� � 140 � 0 120 L � 100 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year Source: U.S. Department of Labor, Bureau of Labor Statistics,2014;MIG,2014 B-1 1 0 DRAFT Housing Element Technical Report Appendix B 4.3. Environmental, Infrastructure & Public Service Constraints Environmental Constraints The majority of Cupertino land area has been urbanized and now supports roadways, structures, other impervious surfaces, areas of turf, and ornamental landscaping. In general, urbanized areas tend to have low to poor wildlife habitat value due to replacement of natural communities, fragmentation of remaining open space areas and parks, and intensive human disturbance. There are no significant wetland or environmental resource issues of concern that would constrain development in areas designated for residential development in Cupertino. Roads Due to the urbanized nature of Cupertino, existing roads are in place to serve the potential infill residential development identified in this Housing Element. The amount of traffic or congestion on a roadway is measured in terms of Leve) of Service (LOS) ranging from A to F, with A representing intersections that experience little or no congestion and F representing intersections with long and unacceptable delays. Cupertino has established a policy of maintaining a minimum of LOS D for major intersections during the morning and afternoon peak traffic hours, with some exceptions. The LOS standard for the Stevens Creek and De Anza Boulevard intersection, the Stevens Creek and Stelling Road intersection, and the De Anza Boulevard and Bollinger Road intersection is LOS E+. The environmental assessment of individual residential projects considers any associated traffic impacts. If the study finds that the project could cause an intersection to deteriorate, mitigation may be required. This usually consists of improvements to adjacent roads and intersections, but may also include changes to the number DRAFT B-1 1 1 2040 GENERAL PLAN City of Cupertino of units in the project, or to site design and layout. However, SB 743, signed into law in 2013, started a process that could fundamentally change transportation impact analysis as part of CEQA compliance. These changes will include the elimination of auto delay, level of service (LOS), and other similar measures of vehicular capacity or traffic congestion as a basis for determining significant impacts in many parts of California (if not statewide). As such, potential costs to new development associated with roadway mitigation may be reduced or eliminated. Water Two water suppliers provide service to the City: the California Water Company and the San Jose Water Company. The San Jose Water Company also has a lease agreement to operate and maintain the City of Cupertino's water system until 2022. Both of these providers derive the vast majority of their water from the Santa Clara Valley Water District. According to the 2014 General Plan Amendment and Housing Element EIR, California Water Company and San Jose Water Company have sufficient water supplies to accommodate increased growth associated with the GPA and Housing Element under normal, single dry, or multiple dry years. Future development associated with the Housing Element would be located within already developed urban areas and would therefore connect to an existing water distribution system. No new water treatment facilities or the expansion of existing facilities would be required to accommodate the RHNA. Wastewater Cupertino Sanitary District (CSD) serves as the main provider of wastewater collection and treatment services for Cupertino, while the City of Sunnyvale serves a small portion of the Cupertino Urban Service area on the B-1 1 2 DRAFT Housing Element Technical Report Appendix B east side of the city. The City of Sunnyvale Wastewater Treatment Plant has a daily treatment capacity of 29 mgd capacity, of which approximately 15 mgd are being utilized in 2014. The CSD has a contractual treatment allocation with the San Jose/Santa Clara Water Pollution Control Plant of 7.85 million gallon per day (mgd), on average. Current wastewater flow to San Jose/Santa Clara Water Pollution Control Plant is 5.3 mgd. The CSD prepared a flow capacity analysis in 2008 and determined that 0.6 mgd capacity remained for development beyond that previously allocated and planned for under the General Plan. The 2014 General Plan Amendment and Housing Element EIR identifies this as a significant and unavoidable impact, as the combined 2014 project would generate an estimated 1.45 mgd of wastewater flows upon buildout, resulting in a deficit of 0.85 mgd beyond the current contractually available treatment capacity. However, both the SJ/SCWPCP and City of Sunnyvale treatment plants have excess capacity that could potentially treat new wastewater flows associated with development pursuant to Housing Element policy. With regard to sewer capacity, some capacity deficiencies exist in certain areas of Cupertino, including sewer lines serving the City Center area and lines on Stelling Road and Foothill Boulevard. To accommodate wastewater from major new developments, the lines running at or new capacity in these areas will have to be upgraded. Under current practice, the CSD requires developers of substantial projects to demonstrate that adequate capacity exists, or to identify and fund the necessary mitigations. CSD is, as of 2014, performing a capacity analysis of their entire collection system. Improvements required to mitigate system deficiencies as wel) as to accommodate future development will be identified and added to their Capital Improvement Program (CIP). Capacity fees will then be developed to fund the CIP. New development that DRAFT B-1 1 3 2040 GENERAL PLAN City of Cupertino increases wastewater transmission and treatment demand would be required to contribute towards system capacity enhancement improvements through payment of the capacity fee. In this manner, CSD would be responsible for upgrading their system rather than placing the responsibility on the developers of the largest wastewater generators, as is currently the case. If and when this fee is developed and implemented, it will create a more reliable and equitable mitigation for new development. Storm Drainage Cupertino's storm drain system consists of underground pipelines that carry surface runoff from streets to prevent flooding. Runoff enters the system at catch basins found along curbs near street intersections and is discharged into City creeks. The capacity of the storm drain facilities within Cupertino was evaluated and documented in the 1993 Storm Drain Master Plan, which identifies the areas within the system that do not have the capacity to handle runoff during the 10-year storm event, which is the City's design standard. The City requires that all new developments conform to this standard. Open Space Cupertino's General Plan outlines a policy of having parkland equal to three acres for every 1,000 residents. Currently, Cupertino has approximately 162 acres of parkland. Future development in Cupertino would increase the need for new park land. The General Plan identified an additional 49 acres of potential neighborhood and community parks, which would be more than enough to maintain the standard of three acres for every 1,000 residents. In addition, Cupertino's park impact fees of $8,100 to $15,750 per unit would generate funding for the City to purchase new parkland and maintain existing recreational resources. B-1 1 4 DRAFT Housing Element Technical Report Appendix B Community Acceptance Other constraints to housing production in the City include community acceptance, specifically concerns about impacts on the school districts, trafFic, and parks. In particular, neighbors have indicated resistance to the development of buildings taller than two stories. Density and height are more acceptable if buildings are well designed and along corridors or adjacent to higher-density development. In 2013 interviews, many stakeholders indicated that multi- family projects tend to generate community opposition and that there is some general fear of growth and increased density in the City. Opposition from the community tends to increase with the size and height of the project, as well as the proximity to existing single-family neighborhoods. To facilitate residential development and meet the RHNA for this fifth cycle update, the City conducted an extensive community outreach process to identify appropriate and feasible sites for residential and mixed use development over the next eight years. One of the objectives of this process is to address community concerns. Schools Cupertino Union School District (CUSD) and Fremont Union High School District (FUHSD) are among the best in the state. In addition, a portion of the City, in the northeast corner, is also served by the Santa Clara Unified School District. Residents are particularly concerned about the impacts of new housing on schools. However, State law (Government Code Section 65995[3][h]) provides that payment of school impact fees fully mitigates impacts, and as such, the City's ability to require additional mitigation is limited by State law. CUSD is a rapidly growing school district. Enrollment has increased every year during the last decade, increasing DRAFT B-1 1 5 2040 GENERAL PLAN City of Cupertino from 15,575 in the fall of 2001 to 19,058 in the fall of 2013. CUSD serves students from Cupertino and parts of San Jose, Sunnyvale, Saratoga, Santa Clara, and Los Altos at 20 elementary schools and five middle schools. Approximately 44 percent of CUSD's students reside in Cupertino. In total, 3,325 CUSD students (17 percent of total enrollment) attend schools other than the school of their attendance area. FUHSD served 10,657 students from Cupertino, most of Sunnyvale and parts of San Jose, Los Altos, Saratoga, and Santa Clara. The Santa Clara District is a medium size district; as a unified district its 15,394 students are spread from kindergarten through high school. Operating Costs and Finances Most of CUSD revenues are tied to the size of enrollment. The State Department of Education guarantees CUSD a certain level of operations funding known as the "revenue limit." The Revenue Limit is established annually by the State based on the District's average daily attendance (ADA). The revenue limit is composed of State funding and local property tax revenues. If the District's property tax revenufalls below the revenue limit in any given year, the state will increase its contribution to make up the difference. CUSD therefore relies on gradual, steady increases in enrollment to maintain its financial health over time. Because the revenue limit makes up the majority of CUSD revenues, and this limit is tied directly to enrollment, the District needs predictable, ongoing student growth to keep up with costs. Declines in enrollment would require the District to cut costs. The 2013-2014 school year operating budget was $155.6 million. With the total of 19,053 enrolled students districtwide, the operating cost per student for the school year was approximately $8,167. In contrast, FUHSD relies on property taxes for most of B-1 1 6 DRAFT Housing Element Technical Report Appendix B its revenue. FUHSD receives property taxes in excess its revenue limit. FUHSD keeps these additional revenues for operations. As a result, the state does not provide annual per-ADA funding. Therefore, FUHSD counts on a growing property tax base to keep up with costs and maintain per-student funding. New development helps promote a healthy tax base over time. Multi-family development can be particularly beneficial to the tax base, generating higher revenues per acre than single-family homes. This translates into more revenue for FUHSD. The FUHSD's operating budget for the school year 2013-2014 was $115 million. With the total of 10,657 students enrolled, operating cost per student was approximately $10,800. . . � - . - • • � . . � . . , . �fiti';t .���� q� ��i I I� � 9�� P%id iE: • '• � ,r • .^"6 v tvk n ';I 1 550 000 Value er Unit a $822 500 $ , p ( ) , , Density (Units/Acre) 20 5 Total Value/Acre $16,450,000 $7,750,000 Property Taxes to FUHSD $27,965 $13,175 per Acre (b) Notes: (a)Median sales prices from July 2013 to June 2014 (b)FUHSD receives approximately 17%of 1%of assessed value. Source:School House Services,2014. Moreover, property taxes from new multi-family housing can exceed the cost to FUHSD to serve students. Table 4.8 illustrates this point, using previously built projects as examples. Nonetheless, FUHSD stresses that the impacts of new residential development should be evaluated on a case-by-case basis to mitigate any undue effects on the District. DRAFT B-1 1 7 2040 GENERAL PLAN City of Cupertino • - • ; • • • � � • • • � • • • • • • � ' . ,. • �r� i �� � � '� �� ��a�y��idiS��'�� r •~� • ��� a� s a s "�� '` �d�,,i �a,��� ��• s�+ R��m�. P �a� w� � � a , �ros� ��� �� � �'�.,�;,�, , •��� . ,, ,.,� „ n„ ,, ,,.,.� � „ ,� �.: � ,,,. .�m„., e,�, .��., , .�,..,� n�.9���,����a,. � i.��da�„�,�� ,��h�:�„w FUHSD REVENUE Assessed Value of Dev't $ 113,486,674 $ 38,480,698 $ 25,106,837 $ 65,788,586 $ 116,329,797 Property Tax Revenue (a) $ 252,958 85,745 $ 57,086 $ 145,477 $ 258,480 FUHSD COSTS Number of Students in � 17 2 6 13 Dev't Cost to Serve Students � 75,600 183,60 $ 21,600 $ 64,800 $ 140,400 (b) NET SURPLUS/(DEFICIT) $ 177,358 (97,855) $ 34,486 $ 80,677 $ 118,080 Notes: (a)Percentage of base 1.0 percent property tax FUHSD receives(after ERAF shift)in TRA 13-003: 17% (b)FUHSD Operating Cost per Student, FY 13-14:$10,800 Sources:Santa Clara County Assessor, Enrolment Projections Consultants, School House Services,2014. Enrollment and Facilities Each of the local school districts expects to continue growing over the next 10 years. CUSD and FUSD project that a total of 1,321 new housing units would be built in Cupertino in the years 2014 through 2023, and expects enrollment to grow accordingly. It is important to note that this growth comes from the other cities that the districts serve, in addition to Cupertino. Cupertino-based students comprise about 60 percent of enrollment in each district. In addition to this housing growth, the recent surge in enrollment at CUSD has been primarily in the younger grades and these larger classes are now entering middle school. Accordingly, by 2020 high school enrollment at FUSD is projected to increase by over 1,000 students. SCUSD anticipates a 13 percent increase in enrollment by 2023. B-1 1 8 DRAFT Housing Element Technical Report Appendix B Figure B-6 Enrollment Projections, 2008-2013, CUSD and FUHSD 25,000 ��._. _...._..�.�._._�...�..__��_.�___.____�_�.__e.�.�n�_�.��_�._.._..._..�._w___.._____. � � � 20,000 � � i � 19,346 ! i . 15,000 ;_..__.____—__�..__._._�._.w.._..___.._____ .__._._.__.._ ..� _ _. ..._._.._ . ___e. ____�. _. __... ..._.___ ._....�.__. � 11,654 �,,..,�C U S D 6 �_ �-�F U S D 10,000 � i � � 5,000 ���-- £ s 1 � . O .�... . ....... ,�. ....... ... ......,. ..... .�.. ....... . .... ........ ..w.......... .. . .. .... ..... .. .. . 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 The districts will continue to use their facilities efficiently to accommodate projected growth. CUSD and FUHSD report that their ability to absorb new students is not unlimited, and rapid growth does pose a challenge. However, they will strive to make space and maintain student-teacher ratios through creative solutions such as relocating special programs, adjusting schedules, selectively using modular classrooms, and other approaches. In addition, FUHSD is developing a plan to dedicate the $198 million raised from Measure B (authorized in 2008) for facility improvements. These include athletic facilities, solar power, IT systems, infrastructure, classrooms, labs, and lecture halls. The districts also augment their facilities using impact fees from new development. CUSD receives $2.02 per square foot in fees from residential development. FUHSD receives $1.34 per square foot from new residential development. DRAFT B-1 1 9 2040 GENERAL PLAN City of Cupertino In addition to the development impact fee, voters have approved multiple bond measures for school facility improvements. The districts can also address impacts on a case-by-case basis, establishing partnerships with home builders to construct new facilities or expand existing schools. Higher-density housing generally generates fewer students per unit. Table 4.9 illustrates this trend among recently-built projects in Cupertino. On average, the school districts report that new single-family homes and townhouses generate 0.8 K-12 students per unit, while new multi-family homes generate 0.3 K-12 students per unit. In addition, most enrollment growth comes from existing homes that are either sold or rented to families with children, not new development. Nonetheless, the districts indicate that new housing will contribute to future demand for classroom space, which the districts must address through the strategies outlined above. � • �� � • - • � • - ����a�����., , �rr���� � � i- w „. _ ��.� �� ,.� �•� - A1 � � w•- s . • - - .•• : '. Density (Units/Acre) 96 24 30 31 Students/Unit CUSD (a) 0.22 0.26 0.29 0.33 FHUSD (a) 0.03 0.04 0.06 0.10 Total 0.25 0.30 0.35 0.43 Notes: (a)Student enrollment data as of October 2013,provided by Enrolment Projection Consultants. Sources:City of Cupertino;EPC 2014. A comprehensive analysis of school impacts was completed as part of the 2014 General Plan Amendment and 2015- 2023 Housing Element drafting. Four alternatives were analyzed, consistent with the Environmental Impact Report for the combined project. The existing General Plan and B-120 DRAFT Housing Element Technical Report Appendix B Alternative A would result in the same level of residential development. Alternatives B and C change the General Plan designation and zoning for some sites to make more units possible. The analysis presented here pertains to the portion of residential development estimated to take place between 2015 and 2023 under each growth scenario, to be consistent with the Housing Element time period. [This section to be updated subsequent to City Council decision on General Plan Alternatives.) � . . - • - • � � 'V„�� i,q,R;°� �':�d;,`„� i �" (I�r�`.�i�i,;,..,.i�l,��l,, a � �� y�.,�� 3y}�}ru�,'��) i, � '.,G;.i �qa3.�Elwl�'e,��l� + �����«������,��*k.w�7.V�ed ad;`�de�P�a4 q� ���asy'sMw Y.ny�x.�.7.19��1�+1'li I i� A4 I li i si • • � �' By 2023 Number of Units Expected 1,140 1,140 1,060 1,993 CUSD Students Expected 365 365 339 638 FUHSD Students Expected 80 80 74 140 Total Students* 445 445 413 778 *SCUSD enrollment impacts are relatively small,possibly either positive or negative. The projections in Table 4.10 are based on the rates of generation of apartments built since 1995 in Cupertino, which have a relatively small number of middle and high school students in them. The largest numbers of potential units and students are in the Garden Gate and Collins elementary school attendance areas, in the Lawson Middle School area, and in the Cupertino and Monta Vista High School areas. Collins and Garden Gate Elementary Schools and Cupertino High are, or will be, among the schools with the greatest enrollment stress. The projected student enrollment from new units is a small fraction of the projected student enrollment from the existing units in the City. DRAFT B-1 2 1 2040 GENERAL PLAN City of Cupertino Capital costs to add capacity related to rising enrollment are significant, and development impact fees from residential development only cover a quarter of this cost. Table 4.11 indicates the estimated cost deficits related to needed capital improvements associated with increases in enrollment. This analysis does not include impact fee revenue from non-residential development; as such cost deficits may be somewhat overstated. [This section to be updated subsequent to City Council decision on General Plan Alternatives.] . , . . . - . . - . � . .. ,� y, ��,. � �' s •. � ��I , ° _ , � ,��� ���' , � ��,�� � r # ♦ i By 2023 CUSD Net Capital �$ �6 $8.76 $8.13 $15.31 Facilities Cost Deficit FUHSD Net Capital Facilities Cost Deficit $4.02 $4.02 $3.71 $7.03 *SCUSD receives large capital facilities and operating revenue benefits if development is significant. 4.4. Opportunities for Energy Conservation Maximizing energy efficiency and incorporating energy conservation and green building features can contribute to reduced housing costs for homeowners and renters. In addition, these efforts promote sustainable community design and reduced dependence on vehicles, and can significantly contribute to reducing greenhouse gas emissions. In addition to compliance with state regulations, the Environmental Resources/Sustainability, Land Use, and Circulation Elements of the Cupertino General Plan includes policies related to energy conservation and efficiency. In particular, the Land Use Element provides for higher-density housing in proximity to employment centers and transportation corridors and includes mixed use development where appropriate. In addition, the City B-1 2 2 DRAFT Housing Element Technical Report Appendix B is undertaking an effort to prepare a Climate Action Plan (CAP) by modifying the Regional Climate Action Plan to suit the City's needs in order to reduce greenhouse gas emissions. The CAP will meet the regulatory requirements of the California Global Warming Solutions Act, commonly known as AB 32. The Plan will include community-vetted measures to reduce greenhouse gas (GHG) emissions in the region and locally to foster a healthy and resilient Cupertino. Through extensive research and community input, the CAP will meet statewide emission mitigation targets and identify opportunities to reduce emissions that impact the local environment. The City adopted a Green Building Ordinance in 2012. The ordinance aligns with the California Green Building Standards Code (CALGreen) which sets the threshold of building codes at a higher level by requiring development projects to incorporate green building practices. Cal Green requires every new building built after January 1, 2011 to meet a certain baseline of efFiciency and sustainability standards. The ordinance aims to promote green practices (e.g., water, energy and resource conservation) through the design, construction and maintenance of new buildings and existing buildings undergoing major renovations. The City's Green Building Ordinance applies to all new residential and non-residential buildings and structures, additions, renovations, and tenant improvements where CalGreen and minimum green building measures are applicable. For residential development the ordinance differentiates between smaller projects of nine or less units and large projects with more than nine units. The Ordinance requires larger development projects to earn certification per the Leadership in Energy and Environmental Design (LEED) or Green Point Rating (GPR) standards. Smaller developments must meet Cal Green's minimum thresholds as established by the state. DRAFT B-123 2040 GENERAL PLAN City of Cupertino Utility providers serving Cupertino also encourage energy and water conservation. The Santa Clara Valley Water District offers rebate programs that can help residents and businesses save both water and energy. Examples include rebates for high-efficiency toilets and clothes waters, converting high-water using landscape to low water using landscape, and connecting a clothes washer to a graywater irrigation system. Pacific Gas and Electric Company (PG&E) offers energy efficiency rebates to property owners and managers of multifamily dwellings that contain two or more units. The program encourages owners of existing properties to upgrade to qualifying energy-efficient products in individual tenant units and in the common areas of residential apartment buildings, mobile home parks and condominium complexes. The Housing Element contains policies and strategies to promote energy conservation. For example, the City will evaluate the potential to provide incentives, such as waiving or reducing fees, for energy conservation improvements at affordable housing projects (including both existing and new developments that have fewer than ten units) to exceed the minimum requirements of the California Green Building Code. 4.5. Summary ■ Cupertino's General Plan and Zoning Ordinance are not development constraints to new housing production. The Land Use/Community Design Element of the General Plan identifies four categories of residentia) use, while the Zoning Ordinance permits residential development in seven districts. ■ The Zoning Ordinance allows rotating and permanent homeless shelters in the BQ Zone under certain conditions. This Housing Element outlines a to amend B-1 2 4 DRAFT Housing Element Technical Report Appendix B the Zoning Ordinance to comply with state law. Specifically, the City will remove the condition that emergency shelter be located within an existing church structure and restrictions on the hours of operation. A requirement that a management plan shall be submitted to the City prior to shelter operation will be added. ■ The Zoning Ordinance permits farmworker housing for workers and their families whose primary employment is incidental and necessary to agricultural operations conducted on the same parcel of land on which the residences are (ocated. This occupancy requirement is not consistent with the State Employee Housing Act, which allows farmworker housing be occupied by farmworkers not working on the property where the housing is located. The Housing Element outlines a strategy to amend the Zoning Ordinance to define farmworker housing pursuant to State law. ■ The Zoning Ordinance does not currently address the provision of employee housing. The Zoning Ordinance will be amended to identify employee housing for six or fewer employees as a residential use, pursuant to the State Employee Housing Act. ■ Site improvement, building code requirements, and permit processing time in Cupertino are comparable to surrounding communities and are not a development constraint. ■ Development fees in Cupertino are comparable to those in neighboring jurisdictions. ■ The lack of state and local funding sources for affordable housing and limited access to financing, in conjunction with the high cost and low supply of land, may constrain housing development in the near term. ■ A potential constraint to housing development is road capacity. Residential projects may be required to DRAFT B-125 2040 GENERAL PLAN City of Cupertino undertake mitigation measures if developments result in traffic impacts. ■ The stormwater drainage, water distribution, and water supply systems are adequate to accommodate anticipated growth in Cupertino and are not considered constraints to development. Wastewater treatment is reaching capacity in the area; however, existing plants have some excess capacity to treat new wastewater flows associated with development pursuant to Housing Element policy. Some sewer line capacity deficiencies also exist in certain areas of Cupertino—the Cupertino Sanitary District is in the process of assessing deficiencies and developing capacity fees intended to fund necessary improvements. ■ Capacity and fiscal impacts to the Cupertino Union School District, Fremont Union High School District and the Santa Clara Unified School District must be evaluated on a case-by-case basis. State (aw provides that payment of school impact fees fully mitigates impacts, and as such, the City's ability to require additional mitigation is I i m ited by State law. ■ Community acceptance may serve as a constraint to housing development. Over the past several years, multi-family projects have been successfully opposed by residents. 5. Ht�USING RESC�URCES 5.1. Overview of Available Sites for Housing The purpose of the adequate sites analysis is to demonstrate that the City of Cupertino has a sufficient supply of land to accommodate its fair share of the region's housing needs during the RHNA projections period (January 1, 2014 – October 31, 2022). The Government B-1 2 6 DRAFT Housing Element Technical Report Appendix B Code requires that the Housing Element include an "inventory of land suitable for residential development, including vacant sites and sites having the potential for redevelopment" (Section 65583(a)(3)). It further requires that the element analyze zoning and infrastructure on these sites to ensure housing development is feasible during the planning period. Demonstrating an adequate land supply, however, is only part of the task. The City must also show that this supply is capable of accommodating housing demand from all economic segments of the community. High land costs in the Bay Area make it difficult to meet the demand for affordable housing on sites that are zoned at relatively low densities. Pursuant to Government Code Section 65583.2(c) (3)(B), local governments may utilize "default" density standards (e.g. the "Mullen Densities") to provide evidence that "appropriate zoning" is in place to accommodate the development of housing for very-low and low-income households . The purpose of this law is to provide a numerical density standard for local governments, resulting in greater certainty in the housing element review process. Specifically, if a local government has adopted density standards that comply with the criteria provided in the law, no further analysis is required to establish the adequacy of the density standard. The default density standard for Cupertino and other suburban jurisdictions in Santa Clara County to demonstrate adequate capacity for low and very low income units is 20 dwelling units per acre or more. 5.2. Progress towards the Regional Housing Needs Allocation (RHNA) California General Plan law requires each city and county to have land zoned to accommodate its fair share of the regional housing need. Pursuant to California Government DRAFT g-� 2� 2040 GENERAL PLAN City of Cupertino Code Section 65584, the state, regional councils of government (in this case, ABAG) and local governments must collectively determine each locality's share of regional housing need. The major goal of the RHNA is to assure a fair distribution of housing among cities and counties in the State so that every community provides for a mix of housing for all economic segments. The housing allocation targets are not building requirements; rather, they are planning goals for each community to accommodate through appropriate planning policies and land use regulations. Allocation targets are intended to assure that adequate sites and zoning are made available to address anticipated housing demand during the planning period. The RHNA for the ABAG region was adopted in July 2013. This RHNA covers an 8.8-year projection period (January 1, 2014 through October 31, 2022)9 and is divided into four income categories: very low, low, moderate, and above moderate. As determined by ABAG, the City of Cupertino's fair share allocation is 1,064 new housing units during this planning cycle, with the units divided among the four income categories as shown in Table 5.1. Since the RHNA uses January 1, 2014 as the baseline for growth projections for the 2014-2022 planning period, jurisdictions may count toward the RHNA housing units developed, under construction, or approved since January 1, 2014. Between January 1, and May 31, 2014, building permits for 14 single-family housing units and three second units were approved in Cupertino. In addition, six single-family homes and seven apartments received Planning approvals (Table 5.1). Also included in the RHNA credits are 32 second units projected to be developed within the pfanning period. As provided in Government Code Section 65583(c)(1)), 9 The Housing Element planning period differs from the RHNA projection period—the period for which housing demand was calculated.The Housing Element covers the planning period of January 31,2015 through January 31, 2023. B-1 2 8 DRAFT Housing Element Technical Report Appendix B in addition to identifying vacant or underutilized land resources, the City can address a portion of the RHNA through an estimate of the number of second units that may be permitted during the planning period. The City approves an average of four second units per year. Considering this track record, the City estimates that 32 second units will be approved over eight-year planning period. Cupertino's Zoning Ordinance permits second dwelling units on lots in Single-Family Residential (R-1), Residential Hillside (RHS), Agricultural (A), and Agricultural Residential (A-1) Districts. Permit approval and architectural review are done at the ministerial (building permit) level. Consistent with Government Code Section 65583(c)(1)) and HCD technical guidance documents, the City is applying the second unit estimate towards its moderate income RHNA. HCD has indicated that second-unit affordability can be determined by examining market rates for reasonably comparable rental properties and applying these rates to estimate the anticipated affordability of second units. A review of rental market conditions in Cupertino conducted for this Housing Element found that the average cost of a studio apartment is $1,608 and the average cost of a one- bedroom apartment is $2,237. These rental rates are in the range of moderate income rents as determined by HUD (see Table 2.15: Maximum Affordable Housing Costs, Santa Clara County, 2013). As these units are comparable in size and occupancy to second units, it is reasonable to assume that current rents for second units fall within affordability levels for one-person moderate-income households. Therefore, second units in the pipeline and the anticipated 32 second units are credited against the moderate income RHNA. Recent research in the San Francisco Bay Area suggest that that a sizable fraction of secondary units are rented to acquaintances, friends or family, in some cases for free and in other cases, for reduced rents��. This research 10 Chapple, Karen and Jake Wegmann.Understanding the Market for Secondary DRAFT B-1 2 9 2040 GENERAL PLAN City of Cupertino suggests that second units may in fact be a source of affordable housing in the City at affordability levels lower than the moderate-income level they are credited against. Applying the projected 32 second units towards the moderate income category is a conservative approach, and is consistent with State law and HCD technical guidance documents. With these credits, the City has a remaining RHNA of 1,002 units: 356 extremely low/very low-income units, 207 low- income units, 196 moderate-income units, and 243 above moderate-income units. . • . - . - • � � � .. ���vP�„�����f I���j I��i I��I i� ' ... .. �� �,; ,;;.:� , ,,..,„.;.:.,. . :.., ���9�lili'6 e � ' O�C�� I ;:; , d.�,�,,, ,. .e� � � ! ' � �,. � s�I��� ,i, �„�,kE ,.� �r,,��W,�,,,: „�, � V��� P " � � .w,�.. #• -• • - a�• � � o ° :1' . � • . s • -: � f. � • . �� . . Various Single-Family Units • --- 14 14 (Building Permits) -�- --- Various Single-Family Units (Planning Permits) --- '-' 6 6 Multi-Family Units (Planning � � ermits --- --- --- Second Units Permitted (Building Permits) --- --- 3* --- 3 Estimated Second Unit ___ 32* ___ 32 Production --- Total --- --- 35 27 62 2014-2022 RHNA 356 207 231 270 1,064 RHNA Credits --- --- 35 27 62 Remaining 2014-2022 RHNA 356 207 196 243 1,002 Source:ABAG Regional Housing Needs Allocation,2014;City of Cupertino,2014 Notes: *These units do not have affordability restrictions. Market rate rents and sale prices for similar units fall within levels affordable to the households earning moderate incomes(81-120%AMI)and are allocated as such. Units in the East Bay. UC Berkeley: Institute of Urban and Regional Developmental. Oct 2012. B-130 DRAFT Housing Element Technical Report Appendix B 5.3. General Plan Residential Allocations Cupertino faces regional growth demands. It is also undergoing a transformation from a traditional suburban residential community to one that has more public gathering spaces, shopping and entertainment choices, and jobs within an urban core. How the City allocates growth through the General Plan is critical in determining the type of community Cupertino will be in the future. Cupertino historically has more jobs than housing. When this imbalance is multiplied across other adjacent cities, regional consequences include high housing costs, sprawl into outlying areas, congestion of the transportation system, and increased air pollution. The General Plan's development allocation policies improve the jobs/housing balance by increasing potential housing units and decreasing non-residential square footage. The current 2005 General Plan controls the amount of commercial, office, hotel, and residential built in the city through development allocations in terms of square feet (commercial and office), rooms (hotel), and units (residential). This allocation was updated in 2014 as part of a comprehensive process that sought to replenish, re-allocate, and increase citywide ofFice, commercial, hotel, and residential allocations in order to plan for anticipated future development activity while keeping with the community's character, goals, and objectives. 5.4. Residential Capacity Analysis Methodology Like many cities in the Bay Area, Cupertino is largely built out. As a result, opportunities for residential units will be realized through the redevelopment of sites with existing buildings. City staff undertook a deliberate site selection process to ensure that future residential development on DRAFT g-� 3� 2040 GENERAL PLAN City of Cupertino the sites would: 1) have community support (see description of community process below), 2) achieve community goals of affordability and walkability, and 3) create a livable environment for new residents and neighbors. To ensure this, sites were selected based on the following criteria: • Proximity to transportation corridors • Proximity (preferably within walking distance) to amenities such as schools, neighborhood services, restaurants and reta i I • Ability to provide smaller, more affordable units; sites were selected in higher density areas to achieve this • Create a livable community with the least impact on neighborhoods; sites that had the most in common with successfully developed sites were selected • Corner lot (ocation; such parcels provide the most flexibility to accommodate mixed- use developments and avoid impeding parking and connectivity between mid- block parcels In addition to the state-wide criteria that HCD uses to determine site suitability, the Sustainable Communities Strategy/One Bay Area Plan contributed additional criteria regarding what makes a desirable housing site in the ABAG region. The One Bay Area Plan is a long-range integrated transportation and land-use/housing strategy through 2040 for the San Francisco Bay Area. The plan focuses development in Priority Development Areas (PDA) which are locally designated areas within existing communities that have been identified and approved by loca) cities or counties for future growth. These areas are typically accessible to public transit, jobs, recreation, shopping and other services, and absorb much of the growth anticipated in the region. In Cupertino, a PDA is located along Stevens Creek Boulevard between Highway 85 and the City of Santa B-132 DRAFT � Housing Element Technical Report Appendix B Clara and along De Anza Boulevard between Stevens Creek Boulevard and Highway 280. Key criteria in the Sustainable Communities Strategy/One Bay Area Plan include: � Location along major transportation routes with access to transit or within '/z mile of a Valley Transit Authority- designate PDA • Proximity to employment and activity centers • Proximity to amenities With the selection criteria in mind, City staff conducted a thorough study evaluating underutilized land in Cupertino. These parcels included residentially zoned land as well as other designations such as commercial and mixed use. Community Involvement To ensure that both community members and property owners support of the Housing Element—and sites inventory in particular—City staff engaged in an in-depth community involvement process. The inventory of residential opportunity sites was developed in consultation with the Housing Commission, Planning Commission, City Council, and members of the public. The Housing Element and sites inventory was presented at a Planning Commission and Housing Commission joint workshop, a Housing Commission workshop, a Planning Commission Open House and Study Session, and a City Council Study Session. At each meeting, commissioners and council members, as well as members of the public, discussed the inventory. During these discussions, several sites were removed and new sites were added based on input from these various stakeholders. Decisions to add or remove sites were based on realistic expectations for sites to be redeveloped within the planning period. In addition to consultation with various community DRAFT B-1 3 3 2040 GENERAL PLAN City of Cupertino stakeholders, City staff reached out to individual owners whose properties were iclentified as housing opportunity sites. Each affected owner received a letter informing them that their property had been identified by the City to be included in its Housing Element as a housing opportunity site. The letter provided information about the process and the opportunity to provide feedback or express concerns. Many property owners contacted stafF to discuss inclusions, but a few objected to the inclusion of their property in the sites inventory. Staff also received request from property owners to be included in the site inventory. The sites with property owner development interest were evaluated against the criteria described above. Sites that did not meet the criteria were not included in the inventory. Sites where the owner objected to inclusion were not included in the final inventory. While residential development may occur on other sites not included in this inventory, the sites ultimately included in this Housing Element are those the community believes have the most realistic chance of redeveloping into housing within the planning period. As a result of the community engagement process, the sites inventory represents a list of residential opportunity sites that the community has thoroughly reviewed and supports. B-1 3 4 DRAFT Housing Element Technical Report Appendix B Determination of Realistic Capacity Sites inventory capacity must account for development standards such as building height restrictions, minimum setbacks, and maximum lot coverage, as well as the potential for non-residential uses in mixed-use areas. A survey of recent developments (Table 5.2) indicates that recent multi-family residential projects have built to between 82 percent and 99.5 percent of the maximum allowable density. To ensure that the sites inventory provides a "realistic capacity" for each site, estimates for maximum developable units on each site are conservatively reduced by 15 percent. . : , . - . . - - � . ��Y II �PIIl�. I I I,YIIIP�I+j4��ll il�� ,,.�.:� ,. ,,.... ,.���„.�� �„ : y'u.�I a����I,,,��� !'< I� �, V e�x ,, _Ijl�,�i 9,�����I ��9l�jl( i I��I �h r Y , � � � e �• ' Site Area (acres) 5.9 3.24 1.6 1.0 3.3 Max. Density 35 25 35 25 35 (dwelling units per acre) Max. Developable Units 205 81 56 25 116 Actual Units Developed 204 74 46 23 107 Actual/Max. Units 99.5% 91.3% 82% 92% 92% Commercial Sq. Ft. as % 370�0 2% NA 8% 4% of Total Sq. ft. Source:City of Cupertino,2014 C►R���-� � . , '� � 2040 GENERAL PLAN City of Cupertino Because of the desirability and high value of residential property in Cupertino, developers are reluctant to include ground floor commercial space in residential buildings, even when land is zoned for mixed-use development. The City must often encourage or request that ground-floor commercial space be included in projects and commercial space typically represents a small proportion of the total development. Staff anticipates that this trend will continue, and land zoned for mixed-use will achieve residential densities at or above 85 percent of the maximum with ground floor commercial space along the street frontage. This trend is evident in the three mixed-use project examples that contained ground floor commercial development. The Biltmore Adjacency, Metropolitan and Adobe Terraces projects are typical mixed-use, multi- family developments in Cupertino. In both cases, the commercial component represented a small portion of the total square footage (between 2 and 8 percent). Even with the provision of ground floor commercial space, these developments were able to achieve 91 to 92 percent of the maximum allowable residential units. The height limit of developments in most of the major transportation corridors is 45 feet at the minimum. Based on the development experiences at the completed projects described above, the density assumptions for mixed-use residential projects at 85 percent of the maximum allowed is realistic. The assumption that sites will achieve 85 percent of the maximum allowable density is also realistic for sites that allow for a variety of uses, including 100 percent commercial development, in addition to residential development and mixed-use development. This is because of the high market value of available properties , for residential development. As discussed above, the desirability and high value of residential property in Cupertino encourages residential or mixed-use B-136 DRAFT Housing Element Technical Report Appendix B development over exclusively commercial development. All five example projects presented above were developed in a zone that allows a mix of uses including exclusively commercial and ofFice development, further demonstrating the strength of residential development over commercial development in Cupertino. 5.5.Residential Sites Inventory Cupertino has residential development opportunities with sufficient capacity to meet and exceed the identified housing need (Figure B-7). The opportunities shown in the sites inventory consist predominantly of underutilized sites that can accommodate 1,386 residential units on properties zoned for densities of 20 dwelling units to the acre or more. The sites inventory is organized by geographic area and in particular, by mixed use corridors. As shown, a large proportion of the near-term development potential lies within the Heart of the City Special Area. One additional site is located in the North De Anza Special Area. As indicated in a market study completed in 2014, there is a healthy demand for new housing and long-term trends indicate market potential for additional development in key areas throughout the city. The City has undertaken a comprehensive General Plan Amendment that authorizes new development capacity in the identified areas of the City with highest demand. The market study further found that existing demand is greatest for smaller, more affordable units adjacent to services, retail, and entertainment options. All sites in the Housing Element to meet the RHNA are identified on major mixed-use corridors, close to services and major employers. As demonstrated previously, City leaders have a strong record of supporting and facilitating the development of residential projects in mixed-use areas and of intensifying residential uses where appropriate within the context of the DRAFT B-1 3 7 2040 GENERAL PLAN City of Cupertino general plan land use allocations. Regulatory standards, including the revised Density Bonus Ordinance, are intended to encourage additional residential development on these sites. Altogether, the six sites ensure that adequate sites beyond the remaining RHNA are provided for in the planning period. No identified constraints on these sites would prevent development or reuse during the Housing Element period. A parcel-specific listing of sites is included in Section 7.3: Sites Inventory Table. Heart of the City Special Area The Heart of the City Special Area is a key mixed-use, commercial corridor in Cupertino. Development within this Special Area is guided by the Heart of the City Specific Plan, which is intended to create a greater sense of place, community identity, and a positive and memorable experience for residents, workers and visitors in Cupertino. The area encompasses approximately 635 acres along Stevens Creek Boulevard between Highway 85 and the eastern city limit. The Stevens Creek Boulevard corridor functions as Cupertino's main mixed-use, commercial and retail corridor. A majority of the Heart of the City Special Area is located within a Priority Development Area (PDA). PDAs are the result of a regional initiative that identifies areas where new development will support the day-to-day needs of residents and workers in a pedestrian-friendly environment served by transit. PDAs are critical components for implementing the region's proposed long term growth strategy. The level of growth in each PDA reflects its role in achieving regional objectives and how it fits into locally designated priority growth plans. Cupertino's PDA area, shown on Figure B-7, includes properties within a quarter mile of Stevens Creek Boulevard from Highway 85 to the City's eastern border and a portion of North and South De Anza Boulevards. B-1 3$ DRAFT Housing Element Technical Report Appendix B Figure B-7 Housing Element Sites to Meet the RH NA North Vallco Park: �� � 344 Units � �� '� Sunnyvale � W��-� ("� J "°�, Los Altos � �.„M � �r»��,�° � ....�,.. �.��. J ,�� �..�� �y ��.�� «« ,��. �1 1��,� r�, ,�,«,�.� � j ,4 'u r� d t 1 ( _ __... - i , t'\ -; � .. ..��t�,.,,- � �.� . ; � Site 3 4 _, `�+ � fr � \�.,. ; ` �.. � � 344unit5; ,. t` .,.._..,i� � �.i��� � ~'i.,..., . r ...... , � ! 1 �i , ,i L-,.�.. � f� .... 1 ; �� `,� �/ t �\ � '- � —" � i '�'! � ``1 — �� Site 2 t ♦ � I (_ /'� � Site 5� 600 units 3 `� i . ( ' q �,�` ��93urnts L ... � � ;� �_.___ /' � � Santa Clara ,��, � < , .�"' ,, I ,, �,.,�s - ; # '''r f�ra.,'*�....�- �,. _.... �,...� . . , ' ,` � � Site 1 .ri..�� :. � r.�,.--r'�"..7 - �. � ��" �� +� � 235 units: �"� � � � ~ �1 �`� � � � y Srte 4 Site 6 : g �..+.�"7�� �� i � I� "��.W,�- ���._103 units�'� 11 units_; "` � � � �f � ��� � � ...... ._._. ......� � '.�'. � . � � � {� '�..L� J � '1 � � �....�..�..� ( 1 �� - � t ` ""�> ` � � ""^«, t � `•,r � � .� .�, . .. _ .., � ^►„���.._� ., �_....._. - -__-�......,>� '�� "� �# "�-- . ',� � Heart of the i j� � '��� ��` � San Jose Clt�/: r � � ! ; �� i ``, ,�.�� 1,042 Units r � , �' r ,s ' '' , __. � . o ,— , �, , _ _ _ .......��� __ °� _.. { i � i , �.. ' �` 1 I' i � ,!'�__._..� ' � �� / � / ""' `.S° �1���- �i i ,f_� � "_� � ' �..,.�~.�.��._�.�������a � .1 ; �� 1 ,-�' `°•..,,„� i ��, �...-" � Legend 1 r , — � ��>z ��� � City Boundary Housing Elements Sites Urban Service Area Boundary VTA Priority Sphere of Influence Development Area Boundary Agreement Line (PDA) s�ce Site Number:Realistic Unincor orated Areas °"15 P �apaClty.No[e:Realistic capacity is 85%of maximum capaciry 0 0.5 1 Mile allowedunderAlternativeC Special Areas T 0 1000 2000 3000 Feet [____.] Heart of the City 0 500 1000 Meters � North Vallco Park DRAFT B-139 2040 GENERAL PLAN City of Cupertino To meet the RHNA, five sites encompassing over 92 acres have been identified within the Heart of the City Special Area boundaries; these sites can accommodate 1,042 units at densities greater than 20 units per acre. Four sites are underutilized infill properties, one site is vacant. For underutilized parcels, the age of onsite buildings and the parcels' improvement-to-land value (I/L) ratio suggest that these sites are prime opportunities for redevelopment. In addition, the redevelopment capacity of identified sites is predicated on interest articulated by property owners and recent development approvals in the area, including the Metropolitan (107 units), Adobe Terrace (23 units), Main Street (120 units), and Rose Bowl (204 units) mixed-use projects. Site 1 (The Oaks Shopping Center) Site 1 is located on the north side of Stevens Creek Blvd between Highway 85 and Mary Avenue in the Oaks Gateway within the Heart of the City Special Area. The site is comprised of four parcels (with two owner entities that function under the same ownership) totaling 7.9 acres and is occupied by the Oaks Shopping Center. The center has various small-scale commercial and restaurant tenants. Although the Center is in relatively good condition, it was originally constructed in 1976 as a single story with ample surface parking, and has a resulting low floor-area ratio. The I/L ratio for the consolidated property is estimated at 0.31. The property owners are very interested in redevelopment of the site with a mixed-use (residential and commercial) product. The zoning for this property was revised in 2014 to allow residential in addition to commercial uses. The site presents a strong potential for a redevelopment project that includes residential units based on its large size, potential residential capacity, adjacent freeway access, and location adjacent to residential development. A retail B-1 4 0 DRAFT � Housing Element Technical Report Appendix B � � �'�° �,�� £ ���;���` i>�� �j, ,���»��,� +�y�� x� �� ;�� �"# �'�� �y . °4 ,�_. 7�.* 6 �.. �� w kx � +.*� * d':. .��i�,..+�µ�µ�s., ;���." ���.� �w �'y.:�s�-` . '� � �.�5a .� .a ��.a � .. `a � , � .,,�.,��. �ui� , -z�' � � -'�'�'1 �'� � Y ,v� �� - � , ,_ < ; . .-. -- . . .: _ , a " � �ba s ..� .. .. 1 _ �" �� �° <� rrr.wc� , -�« • `�`" `� � �"*�.� . � . � ;, .«, .... �� ,� ,� . ���t� � a� d.�-� ��,��a� .�.. �,^°` . ,.: , . .y . . � � � s T � , � � ..�_x r :� � � � � � �� �� 2 �� '� � � � fi .s ; �.:� ; � . � �s�`�� ,,. � �'� � *."��� �� _� a � ..'� �t��t � "'�.'+" 'sA :. .. _'4.¢� . /'. . '"' - .Pi��.a� Fa� '�i .�,� ��i �.a°� �°,��� .:9�` ...+ � �' .��B. ' • _� � r�.+A }.>�� ��_ ..� . �� x.s.�+W+`.�^11f°'."°"'aw�al+i im � � ...:. � ,,, � �- �' „�"- ,= =° , ,�'p - " �� ��' � � _ � .. �,__, .�.,, � � ,. �-� ���-� � _,_„_.,__. ��� , _.._C,. , . , ,� .��,. ° e, ` � .�� > ay .� � ��' _ .� "�.�....+► � r � � �+�:� X 3t " 5 y,y�y�y � ^ . ,. r � . .. ��.:. ���������� ��� � r k c. � a _. � . � 3i. .a,w ' � s. °*' y�a� #�* O,' '` "�"�gpl����.: � �;., a��; � . ta . . ,. � ,�.. A�,- „� : . , " : �� . '�'' �)�`� p � p . F ��T.�6 '; , R� .P�C�� ' '' � �p�..'9� �� 4�; k d�� �� %��- � �a� � �� . � �� �t�b'M1�3#MCN��O���'r .r, ,; � . �! k�f YP�`- � ,� a.��9�WAf- � *' .M n✓^ �� y � rJ (' %k' .. .. 1r. s M�,y ; P �` .,.' . , ��� � . . . .w� '�� ��- . . . , 1.. R � M � ,!f� � "�R Y"�°�� > � � ���A"?.n... � .. p y,s+" !� / � � ���� . . . �r� . ...-,; ,' 4� � .. . ... . .. .. `t ... . .� �. .. * . . � �' � ` !"n^... . - � .. �.� ,. w . .� . ��� � , � . �r'� .�r.n`�` ~ ° � �,,.."" " � � � � � � *,�� ,��";�� � � � `` � � � �� �. � - d � g. � � �C`. � ,J'�• ,�p � i�M �i A�'R r �� � i �"r � . .,��*� . , . Y�"' o : �. �.� '�.� �..,�� � � : , �� � ' .•.. � .. ., s���.o- . : w :i 9 ` „ ' �E » , �� ��' �,. '� , ,.a ��w $� ` , ;. . �-. a� _ �. � , �,. s ,. �� , , -�:. a $ �;� ��M�� ' ;; , Site 1: The Oaks Shopping Center strategy report completed for Cupertino in 2014 identifies the Oaks as a site well positioned for redevelopment, perhaps as a retail-residential mixed-use project. Its location on Stevens Creek Boulevard adjacent to Highway 85 and in the Heart of the City District makes high-density multi- family residential development feasible at this site. Several relatively high-density mixed-use, residential projects are in close proximity on Stevens Creek Boulevard. Site 1 is located within a Priority Development Area. The site is designated for Commercial/Office/Residential in the General Plan, zoned Planned Development with General Commercial and Residentia) (P[CG, Res]), and allows for a maximum density of 35 units per acre. Site 1 has the potential to yield 235 units. DRAFT B-1 41 2040 GENERAL PLAN City of Cupertino Site 2 (Valico Shopping District ) The Vallco Shopping Mall is centrally located in the City. The property was originally developed as an indoor mall in the 1970s and consists of 14 parcels developed for retail uses, anchored by Macy's, Sears, JC Penny, and AMC Theaters. The property has been remodeled several times since it was built. Despite being the largest retail project in the City, the Mall is largely vacant, save for the anchor tenants who continue to perform well, primarily due to low holding costs associated with the property. According to stakeholders interviewed for a retail strategy report completed in 2014, Vallco represents not only one of the best-located properties in the City, but also one of the City's largest redevelopment opportunities. The Vallco Shopping District is physically divided by North Wolfe Road, but connected via an elevated bridge. The 47.83-acre site has five property owners, representing a combination of investors and anchor tenants. The 2014 retail strategy report also notes that there is an oversupply of mall space in the United States, which is affecting Vallco's performance. The Mall operates in a competitive environment with successful projects to the north (Stanford Shopping Center), east (Valley Fair and Santana Row), and south (Westgate Shopping Center). In addition the nearby Main Street mixed-use development will add an additional 125,000 square feet of retail, further contributing to the market feasibility of alternate (residential) uses on this site. To revitalize this area, the City envisions a complete redevelopment of the existing Vallco Fashion Mall into a vibrant mixed-use "town center" that is a focal point for regional visitors and the community. The site has a high B-142 DRAFT Housing Element Technical Report Appendix B �'�°�,s�"x� �:, ` "�,�"� � �� �L°`� o �����, �* y a 4�: P �� �� �'`` ��� - ¢ "`y�{�� -t $ �� � t `���' .� ,»r� � ����� '�' n � y� ����.�, � � , � � �, �� -� ; ; M n�;, y t , S r� � +� . .° ��: , t �. _f, �x,��g^n°'� °.- .� � A a:� ..... u r����m; �,„„.. �p ��*.d��`� . � '���#��� a P ��: �j�."� �,t a �:�"�r�.�� 'y�l � 5 � � �' T� �. �., xA � �, , �w r Y '>r . .. �ti ,L� lF��" �� . �.. , _.. ......�,. ' ��� -'.v � *� �x. a� }1� � - . ' � „� �� � �t'� � . ,� ;� �., �r.�a,... �-``�`r', � , , �i ,�:� .: a';:��s �$a�„�� ;` "; ,► �, ��� w �t , � , +w� ° �. � � � ��o �Nr� '� ....r � t P ` �pr)��u�m�(�;�u�y,.�w..". `�°"� i k . �l' °. ,��ay� Y4ir� � � .@..m\ $ e . n � � � �„4#�v �.i.>. }�*?�.� ��'�� �y�� �� � g. � �f f( z�� �et ��.�`. � . . a`� �� �"f� p P v (��.,,g y; � e ��„��p !i �. �fi 34j 'iu''�: �� ; ' p . � / u IC '' j �_ '���,Y t �'�� � � � ^°�> �hr+'���r �„. ��' �;� �n ��� *>�`,` .:.Ri t� y q(" � �. , � �3 � '��`-,� � ��^� ,�*�,. ; ' �_ _?� A ��'• x�, "'�����,w,s� � ,�*� ,� �"��-' �`4 0, �� 4: ��` �.�, h�, �_ �� ,,: � {� , . '.� . ��� 4M1 �: ' ���w� ��. � ro. �y L� �'o & �..�.. ��Y� � ,��s�'�� dk��'; . � . �� �qR. . ��. . ♦ ��� �� +1: �.r, ' — � , r iP' � �. � x .�` �� . �� � �� k�. N.. �� g q � �, kf, '� L� �% y _ ny � � �� . • t �.. - ' ,aW„ y^. � a� q � Y,`�+��P �. � '� i, i.. S 6 �. �� R w"°4q!`�°� ,� �� � % "� , +� '� » } a� ga� :. . �' ����. '� � � ����1�a�. � ., � � p;4 � , l �t.- �" ' � � � � ^ y�a e.. „ # 7 .. � . t�r �^ '��. � '�� ���k A � > ' � � ,� . ; '� y 1� �. .1r . 7i . W >`'�p 1 � � � �.� � ..# ...., . . . .. .".� '�` c � ���,'rv''� � + .. � 3 � > .,�,"� .�,P �� �� y��(�� g .��� a �� � .. „ , ... �` ..._� ._. _ t+.�/ �p � �� . . . ��� � .tr. � .di .. �W a+ .. r, a 71 � .. � yy --.� ° . .. 'k. . � . t �.� ��&�.7r'. �fyp. +�L.. �. A ,M.� h �,3 '4 x : � ,.�...-+""'"�.`ar ti.s..+nn"' �� � "��.��. � j �,,,. .�._,,......�..-. . , Site 2: Vallco Shopping District potential for redevelopment due to expressed property owner interest to redevelop and consolidate, high retail vacancy rates, close proximity to major transportation routes (freeway), and the potential to provide a considerable number of units at the site. The high potential development capacity and close proximity to two recently constructed mixed-use projects (Rosebowl and Main Street) further support redevelopment of the Vallco mall and the inclusion of this site in the Housing Element. The General Plan Land Use Element envisions complete redevelopment of the property, and establishes a policy to create a specific plan for the property to foster development of the cohesive mixed-use district. The zoning for the site was modified DRAFT B-1 4 3 2040 GENERAL PLAN City of Cupertino in 2014 to allow residential uses as part of a mixed-use development. The site is designated Commercial/Office/Residential in the General Plan and zoned Planned Development with Regional Shopping, Office Professional, and Residential (P[Regional Shopping, OP, Res]) which allows for residential uses at a maximum density of 35 units per acre. Site 2 has the potential to yield 600 units. Site 3 (The Hamptons) Site 3 (The Hamptons) is discussed below under the North Vallco Park Special Area. Site 4 (United Furniture/East of E. Estates Drive) Site 4 is located at the southwest corner of Stevens Creek Boulevard and Miller Avenue and includes the properties on both sides of Estates Drive, north of Richwood Drive. The site is comprised of six parcels and a portion of E. Estates Drive, totaling approximately 4.86 acres. The three parcels on the west side of Estates Drive are occupied by an older strip mall with a mix of occupied and vacant retail spaces. The strip mall was built in 1960, and the I/L value of the three parcels ranges from 0.01 to 0.28. The three parcels are held in common ownership; lot consolidation would not be necessary. The parcels on the west side of Estates Drive were included in the 2007 Housing Element as a housing site. Given the high level of expressed developer interest in this site, three additional parcels on the east side of Estates Drive have been added to the original site, one of which is under common ownership with the parcels on the west side of the site. The three parcels on the east side of Estates Drive are currently used for commercial purposes and are occupied by a gas station, a restaurant and a dental office. B-1 4 4 DRAFT Housing Element Technical Report Appendix B � ?�� �°��i�� er;�t�m�u�,.e ,». ,w �e ��+s�..� , a'�" "��suv,e;'�z � � �r x � ... �,. , „ , �� 9 �9�,�„.�., . . ' .,�.,>,. , � �"�,. . , . .�-,.. . .. r. ., ,F,n:. . ��,..�.,, _ . .. ... . .. .... . .. . , � . ..� ,.�� :s�. ,: a `F. � ��� �,� a �;���. '� �� �, �, � �� .,. xK . . -. ������ � ���.� �� ' � � ° � �. �,,, � �; : . 3 . . , . � ��_ ��,� �� ��� � �� �� _. � , , � , _,, , � � . �� . � �� . � . . • *� � q �y -�� � �` , � s� ,� ; � � ° ��°..� �� �����:� � !������ �'� �� � � � �� � � �.o � _. . : # .r.. �x, � i�►. %�,:. � � ..- I r� .�� ♦ ��� . ,.rc. .... �� � " �..1. } L"� � � . ....x � �.�� _,-w.... { . c�..=-� .. ..4� � } . ....� p a� . � x awt+. . .. . ' . -�.."^" . . . . .�. � <�.�. i. -�. " . &Ga3�i�f.v�$:h'N,.`. : . +�w... .-�.,..:-vw . sWhMw+w+.:. .,>..�... �`�� . .,.+:�+I:.. .. .. r wk. WNA�Ao�°"`°'^. . �.:„aaaP.WW*m.��. ex... 1. 4 ...... ...,.... ..;.&.� ,.:::�. ,.. .. a `�hl+A�y� ,na ., � „6 a� � .�1'�`,k"i�;✓��u��a,�'B'`"j�� +t d �� i * .. �Il. 2`s a.��.: r ,.- F:...�.i� . �'.` * � � �" � . � ., _ . �, . ..._ t � �,� � .. '� . � fi , � � ..�� ,�., v- ,ppg���.yyy}'M �t'� .P� �.� �y{,.y� ?� � �, z ,� w�f T^�n � : ' �Ar ��Y`M R�-$,r.� ..a�' � t r t�♦ � � e.� .0 wr �� .ry �.� Y>A.z � � ,+9 . .... f k ... � � , a �� �. ' f . . ..Y. �K�•�� .c.,,">N� 4� �4!w ' � p��_'���� £Y'� � P �y ue. y � ' e N, � 4j � -`s 41 S. ' u � ., - ., �^ � ..L_,�.. .,.. .. �fi::.• �� �' . . _.. y � k, . � .... .._.. .,,,,,�, � . Site 4: United Furniture/East of E. Estates Drive The I/L of the three parcels east of Estates Drive ranges from 0 to 1.6. Although one of the six parcels that comprise the site has a higher improvement-to-land ratio, in general the value of the land on this site significantly exceeds the value of the buildings on the site. Site 4 is one of the top redevelopment opportunities in the city due to its prime location on Stevens Creek Boulevard in the Heart of the City Special Area. Future development on this large site could capture a portion of the road for a cohesive development and benefit from its prime location at the city's core. Site 4 is located directly across from the Vallco Shopping Mall and within one block of both the Rose Bowl and Main Street mixed-use developments, both high- intensity developments expected to be major community focal points. DRA�T B-145 2040 GENERAL PLAN City of Cupertino The site also enjoys easy freeway access, is located in an area that is best served by public transportation, and is adjacent to existing residential neighborhoods. Developers have consistently expressed interest in redeveloping this site. Site 4 is located within a Priority Development Area. The site is designated for Commercial/Office/Residential and is within the Planned Development with General Commercial and Residential (P[CG, Res)] zone which allows for a maximum density of 25 units per acre. Site 4 has the potential to yield 103 units. Site 5 (Glenbrook Apartments) Site 5 contains the Glenbrook Apartments that are not built to the maximum allowed density in the Heart of the City Special Area. The apartment complex has large open spaces that exceed open space requirements established in the Zoning Code. As such, additional units could be built on the site. Spanning 31.3 acres, the site could accommodate 626 units under existing zoning, which allows for a density of 20 dwelling units to the acre. However, the Glenbrook Apartments only contains 517 units, resulting in additional potential for up to 109 residential units. Assuming Glenbrook Apartments is able to achieve 85 percent of the site's remaining capacity, the realistic net yield for Site 5 is 93 new units. A similar type of infill development that involves the expansion of garden apartment complexes has previously been approved and completed in Cupertino at the Markham (formerly known as Villa Serra) and Biltmore developments. At the Biltmore, carports were demolished and new units constructed above ground-floor parking. New units and additional parking were added to the Markham complex in surplus open space and recreational areas. The Biltmore project added 29 units for a total project size of 179 units, while the Villa Serra development added 117 units to achieve a total of B-1 4 6 DRAFT Housing Element Technical Report Appendix B � � ,�,. . � � ,�„+ .��3 � � �> d �� ,4�� ; �b s �..� � �' "���� �. = ���a: � F. � � �,� , t�`�',ro��"�`s „` � �: ,°� � �. � � ��� � � s; � . �`:^ �, ,�y*� . >,ar , : , �..� �,, « �'�` �' ��� � <.r� �� �e. c��. `���� � g 'i���""" ' ar°°'"1"_ :y � eg,� �4� `� +r� '� � ""'_"`�� '� ��pw..ww �� � �° wr�.�' i ��fF tM�. R�T� � ���a..,.«�a��s^�p.2. .. i .», ��rF�� r '~^S4 � � �..,.,m�' �V� ,A.�..� . ' . ' �""�°�,.,_ �... � +'"' . ��#, �� + e �� . w ... w�.:a+i` �:� .; ,. ,yw„.e9 . � . . �FUrr�'a�,e ^" x.,� .,�,;,. i . � . 3�dk „, � �P^"��,.n.. ..'� . . ,, �..� , �:-.R ..,.,� . "a� ' �=�°�'y.;r�, .,w, .. .. .... � M .�„, , +i�'�E���`"� � v ��. �-, �ti� . �M � �� �+� ��� �t ��� � � , � � ° � ,,.. � '�„ � ��, ����.�, Site 5: Glenbrook Apartments 506 units. In both cases, existing units were not destroyed to accommodate the expansion. Furthermore, in 2013 the Biltmore added six units by demolishing existing carports and has received entitlements to add seven units above a clubhouse serving the development in an existing open space area in 2014. Similar to the Biltmore Apartments, the Glenbrook Apartments complex has large areas of land dedicated to carports. As was done in the Biltmore development, the carport areas can be converted to ground floor parking with new units above. Additional units could be constructed without affecting existing residentia) units at the site. This site was recommended by members of the public and the community supports the expansion of the Glenbrook Apartments. The trend of adding new units to existing garden apartment complexes is expected to continue in Cupertino due to the limited supply of vacant land and the high demand for residential units in the city. The financial feasibility of additional units on Site 5 is particularly strong because the property has long-time landowners who purchased the land when prices were much lower. Site 5 was included in the 2007 Housing Element. DRAFT B-1 4 7 2040 GENERAL PLAN City of Cupertino The site is designated in the General Plan as Medium Density (10 to 20 dwelling units per acre) and zoned Multi- Family Residential (R3), allowing for a maximum density of 20 units per acre. Site 5 has the potential to yield 93 new units. Site 6 (Barry Swenson) Site 6 is a vacant 0.55-acre property located along the south side of Stevens Creek Boulevard, mid-block between Finch Avenue and North Tantau Avenue. The site is located across the street from the 17.4-acre Main Street mixed-use project constructed in 2014. Main Street is a high-intensity development expected to be major community focal point. Although Site 6 is relatively small compared to other sites included in the inventory, its location on Stevens Creek Boulevard and in the Heart of the City Special Area is conducive to relatively dense multi- family residential development. Furthermore, high-density multi-family development has been built on parcels of less than one acre in Cupertino, including the 23-unit Adobe Terrace project. The site is located along one of the major transportation corridors in Cupertino, and in close proximity to services and public transportation in the Heart of the City Special Area. The owner of the property has expressed interest in developing with residential uses, including affordable products. Site 6 is located within a Priority Development Area. Site 6 was included in the 2007 Housing Element. The site is designated in the General Plan for Commercial/Office/ Residential and is within the Planned Development with General Commercial and Residential (P[CG, Res]) zone, which allows for a maximum density of 25 units per acre. Site 6 has the potential to yield 11 units. B-14$ DRAFT Housing Element Technical Report Appendix B a��, _��,.�,.��;�,,,rt,° �� � . � ������ ��� y�r�c� � ^,��P ��>- �� `� �,.„� � � � ; �•��; ,. s x' �, '�, �+��,�� �' , � °,� � � . a „ �. 6 , . . ,� �4«av.. � �.„�,:..d ' � ,� ��F . ���. � 'N� � � q� a-5 § � "4 � �M e�.+ ��;� '�"�' PR ,� .R�� ��.. �.."�,°�B a... �.N�,. P , , : � . r^M-^r�r� . . . - �� . .. ... ,, �r � ��� ,.._,.....� ,„� ��:s*#t =��� �`'��°�+� :�.1� �� . ; I�� �� �r ` � � `�� ���. .. r .. _..,+r�..,.�.� '� -,.,roe�� �� � " ,�� � �� � � � �� � �� � � „�. �� �,� �� , � ,�'.R�� � � � � ��,��, J�.��w,��� �.;��^v,y :.r,�.,�, . �•,�;. f :, k s� ��G � e��'�.as��'"�,.�� ;'� - �o d.<. ,,., a x w sR�'„.,�: �.���, � w���'„��� �op�n,.�� a�«���w � i$isi. � �� �I� : � ,o ��1�„..0 • .� � «a..��, y, c�����t'�„����'p'��� _ _ Site b: Berry Swenson Property � : • ' • � . . - . . � - . �. � y �4 � g a ��i9�� • � M •�'. • s � ���v,el�i 4 '$u"����Ilii I�an.�i��,�,cib -01�'li�il�l �i i ..•. � � Site 1 (The Oaks Shopping C/O/R 35 7.9 235 Very Low/Low Center) P(CG, Res, OP) Site 2 (Vallco Shopping C/O/R 35 47.83 600 (max) Very Low/Low District) P(Regional Shopping, OP, Res) Site 4 (United Furniture/East C/O/R 25 4.86 103 Very Low/Low of East Estates Drive) P(CG, Res) Site 5 (Glenbrook Medium Density 20 31.34 93 Very Low/Low Apartments) R3(10-20) Site 6(Barry Swenson) C/O/R 25 0.55 11 Very Low/Low P(CG, Res) Total 92.48 1,042 Notes: 1. Realistic capacity for each site reduces the maximum developable units by 15 percent. 2. Identified capacity of sites that allow development densities of at least 20 units per acre are credited toward the lower-income RHNA based on State law. Pursuant to Government Code Section 65583.2(c)(3)(B),local governments may utilize"default"density standards to provide evidence that"appropriate zoning" is in place to support the development of housing for very-low and low-income households.The default density standard for Cupertino and other suburban�urisdictions in Santa Clara County is 20 dwelling units per acre(DUA)or more. 3. Residential capacity for Site 5 reflects a net increase in units. Source:City of Cupertino,2014 DRAFT B-1 4 9 2040 GENERAL PLAN City of Cupertino North Vallco Park Special Area The North Vallco Park Special Area encompasses 240 acres and is an important employment center for Cupertino and the region. The area is located in the northeastern corner of the City, bounded by Homestead Road to the north and Interstate 280 to the south. The area is defined by Apple Campus 2 and the North Vallco Gateway. The North Vallco Gateway includes a medium to high-density multi-family residential project east of Wolfe Road and two hotels and the Cupertino Village Shopping Center west of Wolfe Road. The North Vallco Park area is envisioned to become a sustainable office and campus environment surrounded by a mix of connected, high-quality and pedestrian-oriented neighborhood center, hotels and residential uses. Taller heights may be allowed in the North Vallco Gateway pursuant to the Land Use and Community Design Element. The Apple 2 Campus is expected to be a significant catalyst for residential development in this vicinity. The area accordingly presents a prime opportunity for redevelopment. Site 3 (The Hamptons) Site 3 is located at the south-east corner of the intersection of Pruneridge Avenue and North Wolfe Road adjacent to the recently approved Apple Campus 2. The site is comprised of two parcels totaling 12.44 acres and is currently occupied with a 342-unit multi-family housing development and surface parking lots. The site's property owners have expressed interest in redeveloping the site with significantly higher residential densities than what exists today. Such a redevelopment will create an opportunity to reduce vehicle trips for employees living within walking and bicycling distance to this regional employment hub. The property owner has publically voiced interest in redevelopment of the property to provide additional residential units. The site has a land use designation of High Density (greater than 35 du/ac), zoned Planned Development (P [Res]), and B-1 5 0 DRAFT Housing Element Technical Report Appendix B � � ��;,�„ �� �� � ��x �, � ,����w -"�' � � . `� .� �, ,� , � � ,, "� •... � �: �; "` �. { : � �.�� •� � � ��,�* .�. � � � � �`��. � '�� ���"��;`` �� ,� �� �: ��$",, # F�V ' . ���� qwm,",��u.tu��r�p� '�� R �r ��s, a wy . T4� F �.�;"' . . . � •�`F , h '� :, c �„ �� �� �a"° � ��� � �'�. ��� $��; ��'+k� ',,`'t .� �,'# ;$� Y : � �$s _ ` �;�� , ° �; �f �' �x'� µ., f . � ."s � �� � � '�,� da 3�R� ���`�' '�,� � �y� �z � §'�„`�� ` „� ' - ri�� .$ �� �. �.�a "'�,a�.� ` �,,, '' �, � � -� s �'u _,,..w..� '� .. „ g �� �j�A,ib�}��`�`� �t` � �, �.r �_�-'- �y L5 �� ryr veP� �� � ;�, � , ;.�". �� , � r�F � � � k � , , : _'�,� , �, �� `�) � rr '� � �.�� . €'s- �:�_ � ; . j .� � �' �.� �, �� � � `���� . . � •, � A �� o � ,, „ , � 4 _ y� , =�� ,.` .. .�� �;`". �y � s;, � _. �p�� ���r. .�.,.�„ �+,�_ � ,. � y ; - ; ��-_ _ ,A - ----..�..a. � - � ��..„„ � _ � " � � ��� ,. , ��� ,.r; ° w'"�°`w„�,�,„�,---,r..,,..�._.. M . . ... :��„�,. , � : ,� � __ ' ° i�..� � . � � ,� a�° , ,� � �� ��� �� ,�.o� .� �� �� a � . • , � ��; �nr r ��� ,� r �,y„r�; � � �� .. � .r"� � _� � �w�e,�,�� � � .�.� """*� �„„' ��.�,,. � °��°'�*avr� .� �.w, �,�, . Site 3: The Hamptons allows for a maximum density of 65 units per acre. Site 3 has the potential to yield 344 net units, for a total of 686 units on site. The close proximity to major transportation routes (freeway) and adjacency to a major new employment center (Apple Campus 2), coupled with the high demand for multi- family residential units in Cupertino, make this site ideal for intensification. , : , . � . � , , . , � . , � . , . . . . a .�: �,� �w�..,.�� ;� . � „ . , � ' � aE rN ;�>i�..>�.�s;i�, r w,h� ,fly,, try i:•w� �° , P , ,.;;, �, ,�.. � ., ��;;�� '�. � �a.,�;<,��,,,��., ��� �a`� � ��''` � , ,, � . aa;e .�a ��. '�� 4�����.���� ,�� ����p w��u��VV� �;,�� ,�����Vf m wr• �i��� � �? �f�l�����11�1 �_ � � ' Site 3 (The Hamptons) High Density 65 12.44 344 Very Low/Low P(Res) Total 12.44 344 Notes: 1. Realistic capacity for each site reduces the maximum developable units by 15 percent. 2. Identified capacity of sites that allow development densities of at least 20 units per acre are credited toward the lower-income RHNA based on State law. Pursuant to Government Code Section 65583.2(c)(3)(B),local governments may utilize"default"density standards to provide evidence that"appropriate zoning" is in place to support the development of housing for very-low and low-income households.The default density standard for Cupertino and other suburban jurisdictions in Santa Clara County is 20 dwelling units per acre(DUA)or more. 3. Residential capacity for Site 3 reflects a net increase in units. Source:City of Cupertino,2014 DRAFT B-1 51 2040 GENERAL PLAN City of Cupertino 5.6. Adequacy of Sites for RHNA The sites inventory identifies capacity for 1,386 units, all of which are on sites suitable for development of affordable housing. Overall, identified housing sites have the ability to adequately accommodate the remaining RHNA of 1,002 units. Table 5.3 summarizes the RHNA status. � o e e ,, •, a q r;i�� . ) �' d� W dW<<S0n 1�R`\��P'.�ACV !d 'II Te'1� 6"Y, t �" „7„"�!: °I i `7��Pi � �� f • �� +��7�� ���� 4� 1 ��r* .'�4"i� I� � » s I Extremely Low and Very Low 1,386 356 Low -- 207 Moderate -- 196 Above Moderate -- 243 Total 1,386 1,002 +384 Source:City of Cupertino,2014 5.7. Environmental Constraints The sites inventory analysis reflects land use designations and densities established in the General Plan Land Use and Community Design Element. Thus, any environmental constraints that would lower the potentia) yield have already been accounted for. Sites identified to meet the RHNA are located in urbanized areas on previously developed sites; as such, there are no wetlands or other important biological issues of concern. Any additional constraints that would occur on a more detailed site review basis would be addressed as part of the individual project review process. The capacity to meet the regional share and individual income categories are not constrained by any environmental conditions. B-1 5 2 DRAFT Housing Element Technical Report Appendix B 5.8. Availability of Site Infrastructure and Services Site development potential indicated in the sites inventory is consistent with (and in most cases lower than) the development capacity reported in the Land Use and Community Design Element. Full urban-level services are available throughout the city and specifically to each site in the inventory. Such services are more than adequate for the potential unit yield on each site. As indicated in the EIR for the General Plan Amendment and the Housing Element, there are sufFicient water supplies available to serve the sites identified to meet the RHNA. With regard to sewer capacity, some capacity deficiencies exist in certain areas of Cupertino, including sewer lines serving the City Center area and lines on Stelling Road and Foothill Boulevard. As a result, the Cupertino Sanitary District requires developers of substantial projects to demonstrate that adequate capacity exists, or to identify the necessary mitigations. Development within these areas is reviewed on a case-by-case basis to ensure that adequate sewer capacity exists. 5.9. Zoning for Emergency Shelters and Transitional and Supportive Housing To facilitate the development of emergency housing and comply with State law, the City amended the Zoning Code in 2010 to address emergency shelters and transitional and supportive housing. Emergency Shelters An emergency shelter is a facility that provides temporary housing with minimal supportive services and is limited to occupancy of six months or less. Emergency homeless shelters are designated as a permitted use in the Quasi Public Building (BQ) zone. The ordinance includes the following emergency shelter operational regulations: • Shelter is located within an existing church structure DRAFT B-1 5 3 2040 GENERAL PLAN City of Cupertino • The number of occupants does not exceed 25 • The hours of operation do not exceed 6:00 p.m. to 7:00 a.m. � Adequate supervision is provided • Fire safety regulations are met HE-Strategy 22 commits the City to amending the Zoning Ordinance concurrent with the Housing Element update to remove the condition that an emergency shelter be located within an existing church structure to comply with State law. In addition, rotating homeless shelters are also permitted within existing church structures in the BQ zone under similar conditions. The operation period of rotating shelters cannot exceed two months in any one-year span at a single location. Transitional and Supportive Housing Transitional housing is defined as rental housing for stays of at least six months but where the units are re-circulated to another program recipient after a set period. Supportive housing has no limit on the length of stay, and is (inked to onsite or ofFsite services. Senate Bill 2 clarified that transitional housing and supportive housing constitute residential uses. Zoning ordinances must treat transitional and supportive housing as a proposed residential use and subject only to those restrictions that apply to other residential uses of the same type in the same zone. In Cupertino, transitional and supportive housing developments are treated as residential land uses subject to the same approval process and development standards as other residential uses. The Zoning Code lists transitional and supportive housing as a permitted use in all zones allowing residential. These facilities are subject to the same development standards and permit processing criteria required for residential dwellings of the same type in the same zones. B-1 5 4 DRAFT Housing Element Technical Report Appendix B 5.10. Financial Resources for Housing The City of Cupertino has access to a variety of funding sources for affordable housing activities. These include programs from federal, state, local, and private resources. Community Development Block Grant (CDBG) Program Through the Community Development Block Grant (CDBG) program, the federal Department of Housing and Urban Development (HUD) provides funds to local governments for funding a wide range of housing and community development activities for low-income persons. During the 2013 fiscal year, the City of Cupertino received $342,702 in CDBG funds. CDBG funds are used for public services, site acquisition, housing rehabilitation, and fair housing/housing counseling activities. HOME Investment Partnership Program (HOME) The City of Cupertino is proposing to enter into a multi-city HOME Consortium with the County of Santa Clara. If the HOME Consortium is approved, developers of eligible affordable housing projects within the City of Cupertino could competitively apply annually to the County of Santa Clara for HOME Funds for City of Cupertino affordable housing projects. If the HOME Consortium is approved the initial program year in which HOME funds will become eligible to the City of Cupertino will begin July 1, 2015. Eligible HOME activities may include, but are not limited to acquisition, construction, rehabilitation and tenant based rental assistance (TBRA). Redevelopment Agency Set-Aside Funds Redevelopment Agency (RDA) housing set�aside funds, which used to be a primary local funding source for affordable housing, are no longer available to assist in new affordable housing development or acquisition/rehabilitation of existing units for conversion into affordable housing. This DRAFT B-1 5 5 2040 GENERAL PLAN City of Cupertino loss is associated with the Governor's 2011 state budget revisions and subsequent court cases, and as a result, funding sources for affordable housing are significantly more constrained. Cupertino's Redevelopment Agency dissolved as of February 1, 2012 according to state law. The City elected to become a Successor to the Redevelopment Agency (Successor Agency) in order to manage the wind- down of remaining contracts and obligations of the former Redevelopment Agency. The City does not have any available housing bond funds remaining from this source nor is it anticipated to receive program income in the future. Low Income Housing Tax Credits (LIHTC) Created by the 1986 Tax Reform Act, the LIHTC program has been used in combination with City and other resources to encourage the construction and rehabilitation of rental housing for lower-income households. The program allows investors an annual tax credit over a 10-year period, provided that the housing meets the following minimum low-income occupancy requirements: 20 percent of the units must be affordable to households at 50 percent of AMI or 40 percent of the units must be affordable to those at 60 percent of AMI. The total credit over the 10-year period has a present value equal to 70 percent of the qualified construction and rehabilitation expenditure. The tax credit is typically sold to large investors at a syndication value. Mortgage Credit Certificate (MCC) Program The Mortgage Credit Certificate (MCC) Program was created by the federal government, but the program is locally administered by the County of Santa Clara to assist first-time homebuyers in qualifying for a mortgage. The IRS allows eligible homebuyers with an MCC to take 20 percent of their annual mortgage interest as a dollar-for-dollar tax credit against their federal persona) income tax. This enables first-time homebuyers to qualify for a larger mortgage than otherwise possible, and thus can bring home ownership within reach. In 1987, the County of Santa Clara established B-1 5 6 DRAFT Housing Element Technical Report Appendix B an MCC Program that has since assisted over 200 low and moderate-income first time homebuyers in Cupertino to qualify for a mortgage. However, as housing prices continue to rise in Cupertino, use of MCC has become less feasible. During the last Housing Element period, the MCC Program assisted three Cupertino low- and moderate-income residents. Housing Choice Voucher Program The Housing Choice Voucher Program (formerly known as Section 8 Rental Assistance) is a federal program that provides rental assistance to very-low income persons in need of affordable housing. This program ofFers a voucher that pays the difference between the current fair market rent and what a tenant can afford to pay (e.g. 30 percent of their income). The voucher allows a tenant to choose housing that may cost above the payment standard but the tenant must pay the extra cost. Housing Trust Silicon Valley Housing Trust Silicon Valley provides loans and grants to increase the supply of affordable housing, assist first- time homebuyers, prevent homelessness and stabilize neighborhoods. The Housing Trust's Affordable Housing Growth Fund intakes funds from local jurisdictions and provides matching grants for predevelopment activities, acquisition, and construction and rehabilitation of multi- family affordable housing developments. The City of Cupertino has contributed to the Fund through its former Redevelopment Agency. Below Market Rate (BMR) Affordable Housing Fund (AHF) The City of Cupertino has a Below Market Rate Affordable Housing Fund that provides financial assistance to affordable housing projects, programs and services. The City requires payment of an Office and Industrial Mitigation fee, which is assessed on developers of office and industrial space DRAFT B-1 5 7 2040 GENERAL PLAN City of Cupertino and a Housing Mitigation fee, which is assessed on developers of market-rate rental housing to mitigate the need for afFordable housing created by new development. Developers of for-sale housing with six or fewer units are required to pay the Housing Mitigation fee. Developers of market-rate rental units, where the units cannot be sold individually, must pay the Housing Mitigation fee to the AfFordable Housing Trust Fund to be consistent with recent court decisions and the State Costa-Hawkins Act regarding rent control. All affordable housing mitigation fees are deposited into the City's Below Market-Rate (BMR) Affordable Housing Fund (AHF). Recent funding activities have included loans and grants to non-profit developers for acquisition and rehabilitation activities and public services such as landlord/tenant mediation services provided through Project Sentinel, and assistance to very low income persons and families provided through West Valley Community Services. As of 2014, there is approximately $7 million in the BMR AfFordable Housing Fund. General Fund Human Service Grants (HSG) Program Annually, the City of Cupertino provides approximately $40,000 to non-profit agencies providing needed services to Cupertino residents. HSG Program funds are proposed to be allocated on a competitive basis toward eligible public service activities. Recent recipients have used the funds to provide transitional housing for domestic violence victim, senior adult day care services and legal assistance services to seniors. fi. A�AL'YSI� O� CC7N51STENCY V�/IT�-i CENERAL PLAI'�I The City's various General Plan components were reviewed to evaluate their consistency with the policies and strategies outlined in the Housing Element Update. The following section summarizes the goals of each General Plan element and identifies supporting Housing Element policies and strategies. This analysis demonstrates that the policies and B-1 5 8 DRAFT Housing Element Technical Report Appendix B strategies of this Housing Element provide consistency with the policies set forth in the General Plan and its associated elements. When amendments are made to the safety, conservation, land use, or other elements of the City's General Plan, the housing element will be reviewed for internal consistency. Section 6.1. Land Use/Community Design Goals • Create a cohesive, connected community with a distinctive center and an identifiable edge � Ensure a compact community boundary that allows efficient delivery of municipal services • Establish a high sense of identity and community character • Maintain a thriving and balanced community • Promote thriving and diverse businesses that bring economic vitality to the community, while balancing housing, traffic and community character impacts • Protect hillsides and promote regional planning coordination • Expand City-wide access to community facilities and services • Protect historically and archaeologically significant structures, sites and artifacts • Promote a civic environment where the arts express an innovative spirit, celebrate a rich cultural diversity and inspire individual and community participation • Create a full range of park and recreational resources that link the community, provide outdoor recreation, preserve natural resources and support public health and safety DRAFT B-159 2040 GENERAL PLAN City of Cupertino Supporting Housing Element Policies Policies HE-2, HE-3, HE-4, HE-5, and HE-13 Supporting Housing Element Strategies HE Strategies 1 and 26 Section 6.2. Circulation Goals • Advocate for regional transportation planning decisions that support and complement the needs of Cupertino • Increase the use of public transit, carpools, bicycling, walking and telecommuting • Create a comprehensive network of pedestrian and bicycle routes and facilities • Increased the use of public transit service and encourage the development of new rapid transit service • Maintain roadway designs that accounts for the needs of motorists, pedestrians, bicycles and adjacent land uses • Minimize adverse traffic and circulation impacts on residential neighborhoods Supporting Housing Element Policies Policy HE-3 and HE-14 Supporting Housing Element Strategies HE Strategies 3 and 26 Section 6.3 Environmental Resources/ Sustainability Goals • Ensure a sustainable future for the City of Cupertino B-1 6 0 DRAFT Housing Element Technical Report Appendix B • Reduce the use of non-renewable energy resources • Improve energy conservation and building efficiency • Maintain healthy air quality levels for the citizens of Cupertino through local planning efForts • Protect specific areas of natural vegetation and wildlife habitation to support a sustainable environment • Ensure mineral resource areas minimize community impacts and identify future uses • Ensure the protection and efficient use of water resources � Improve the quality of storm water runoff � Reduce locally produced solid waste in order to reduce energy, protect resources and meet or exceed state requirements • Ensure adequate sewer capacity • Ensure adequate public infrastructure for existing uses and planned growth Supporting Housing Element Policies Policies HE-10 and HE-14 Supporting Housing Element Strategies HE Strategies 20, 21 and 26 Section 6.4 Health and Safety Goals • Reduce hazard risks through regional coordination and mitigation planning • Reduce risks associated with geologic and seismic hazards DRAFT B-1 b 1 2040 GENERAL PLAN City of Cupertino • Protect the community from hazards associated with wildland and urban fires through efficient and effective fire and emergency services • Minimize the loss of life and property through appropriate fire prevention measures • Create an all-weather emergency road system to serve rural areas • Ensure available water service in the hillside and canyon areas • Ensure high quality police services that maintain the community's low crime rate and ensure a high level of public safety • Protection people and property from the risks associated with hazardous materials and exposure to electromagnetic fields • Ensure a high level of emergency preparedness to cope with both natural or human-caused disasters • Protect people and property from risks associated with floods • Maintain a compatible noise environment for existing and future land uses • Reduce the noise impact from major streets and freeways on Cupertino residents • Protect residential areas as much as possible from intrusive non-trafFic noise • Design buildings to minimize noise Supporting Housing Element Policies N/A Supporting Housing Element Strategies N/A B-'! 6 2 DRAFT Housing Element Technical Report Appendix B 7. SUPPLEMENTAL MATERIALS 7.1 Stakeholder Interviews Stakeholder interviews were conducted on December 11 and 12, 2013 to solicit input from stakeholders ranging from community members, property owners, housing developers, service providers, School Districts and the business community. The following agencies were invited to participate (bolded agencies and persons participated, totaling 25 people): Advocates for a Better Cupertino CARe (Cupertino Against Rezoning) CCC (Concerned Citizens of Cupertino) Cupertino Citizens for Fair Government (CCFG) De Anza College Silicon Valley Leadership Group Cupertino Chamber of Commerce Asian American Business Council West Valley Community Services League of Women Voters HBANC (Bay Area Building Industry Association) Housing Choices Coalition Organization of Special Needs Families Silicon Valley Association of Realtors Catholic Charities of Santa Clara County Eden Council for Hope and Opportunity Live Oak Adult Day Services Maitri Senior Adults Legal Assistance (SALA) Rotary Club DRAFT B-1 6 3 2040 GENERAL PLAN City of Cupertino Rebuilding Together Silicon Valley Senior Housing Solutions Charities Housing YWCA Silicon Valley-Support Network Department United Way Silicon Valley Outreach and Escort Santa Clara Family Health Foundation Support Network for Battered Women Institute for Age-Friendly Housing Senior Citizens Commission Santa Clara County Council of Churches Mid Pen Housing Habitat For Humanity East Bay/Silicon Valley Chinese American Realtors Association Fremont Union High School District Cupertino-Fremont Council of PTA Cupertino Union School District Modena Investments LP, Sunnyvale Holding LLC Altos Enterprises Inc., Alpha Investments & Property Management Co. LPMD Architects Unaffiliated builders, lenders, and property owners B-1 6 4 DRAFT Housing Element Technical Report Appendix B A summary of common themes from the interviews is summarized below. All comments and ideas are reported in aggregate and not attributed to any individual or organization. Housing Needs: • Overall housing affordability and the difference " between housing demand and supply at al) income levels • Need for diversity of afFordable rental units at all income levels and all household types • Need to accommodate a growing aging population , � Smaller units including innovative housing models (e.g. dorms/boarding houses, senior care homes, efficiency studios, shared & co-housing, micro units) Community acceptance: • Acceptance is low due to impacts on schools, privacy, parking, noise and traffic • Support for mixed use development in the style of Santana Row and Downtown Mountain View • Improved local governmental transparency and community development Type of development: • Developers and advocates felt that three to five story development is appropriate for adding units but community representatives are concerned about increased height of multi-family development DRAFT B- 1 6 5 2040 GENERAL PLAN City of Cupertino Barriers to development of affordable housing include: • Financial constraints, particularly due to the dissolution of Redevelopment Agencies and elimination of many federal and state funding sources and � Lack of community and political support for housing Community and Business Groups: • Housing is a "choke point" in regiona) economy since it is hard to attract and retain employees in a highly competitive housing market • Several interviewees felt that private employers should be obligated to provide more resources to housing � Many felt that while employers feel concerned about schools and housing, they generally work to limit fees and taxes to businesses School Districts: • Schools in the northern part of the City are impacted due to higher student generation rates in existing housing while capacity in the south of the city is declining, likely due to aging households. • Capacity, where needed, is being expanded by adding new buildings or, preferably, temporary and modular units. • Currently using programs, centers and busing to distribute students • Reluctant to re-district since homeowners purchase homes based on the school service areas • Most of the Apple Campus 2 school impact fees will be allocated to the Santa Clara Unified School District B-1 6 6 DRAFT Housing Element Technical Report Appendix B while they expect that most employees who move to the area will reside within the CUSD service 7.2. Review of Previous Housing Element A thorough review of the City's housing plan constitutes an important first step in updating the Cupertino Housing Element. This section provides an evaluation of the City's progress towards achieving housing goals and objectives as set forth in the prior Housing Element, and analyzes the efficacy and appropriateness of the City's housing policies and programs. This review forms a key basis for restructuring the City's housing plan to meet the housing needs of the Cupertino community. Table 7.1 provides a detailed summary of the City's progress in implementing the programs outlined in the 2007-2014 Housing Element and Table 7.2 summarizes the City's progress toward its RHNA. . : . - � . � • • � � � � • . � - � . 1� 1 � a a� wr„, #� °�� •r . • �• " ••����s�� r�� � � i� , �.,, � '• - • ' s• Y �.,, .; �'1 . • • •. l � ♦ •�• •• • � !° • 1 • • '• � Policy 1: Sufficiently Residentially Zoned Land for New Construction Need Program 1:Zoning and Land Use The City completed the rezoning of 7.98 This program is proposed to be included Designations acres of land from 10 du/ac to 25 du/ac in and revised in the 2014-2022 Housing Rezone one property (APN: 326-10-046) 2010. The City is currently updating the Element to reflect the need to maintain of 7.98 acres from 10 units per acre to 25 Land Use Element concurrent with the an inventory of sites to accommodate the units per acre to accommodate up to 199 Housing Element update. The Land Use new RHNA of 1,064 units. units. Element update will (ikely result in addi- tional sites for residential and mixed use development to accommodate the fifth cycle RHNA of 1,064 units. Program 2: Second Dwelling Unit Between 2007 and 2013, 31 second units This program continues to be appropriate Ordinance were constructed in the City. for the City and is proposed to be includ- Continue to implement ordinance to ed in the 2014-2022 Housing Element. achieve 25 second units Program 3: Encourage Lot Consolidation The City continues to provide assistance This is an ongoing activity and is pro- Continue to encourage lot consolidation to property owners regarding lot consoli- posed to be included and revised in the through master plans. Provide technical dation. 2014-2022 Housing Element. assistance to property owners. DRAFT B-1 6 7 2040 GENERAL PLAN City of Cupertino • ' � ' • • • • ! 1 1 � • - . � • � - . i1 � • • • •. 1i 1 a • • " ,►r „ s _• " we aw r 1 • '• - • ' •« . ` • • 4 a� . a �, � �.; � ° � � . � � � � � - �, �- � ��: Policy 2: Housing Mitigation Plan Program 4: Housing Mitigation Plan- Between 2007 and 2013, $1,195,414 This program represents a key financ- Office and Industrial Mitigation had been collected through the Housing ing mechanism for affordable housing in Continue to implement Office and Mitigation Program (Office/Industrial and Cupertino and is proposed to be included Industrial Mitigation fee program. Residential) and deposited to the Below and revised in the 2014-2022 Housing Market-Rate (BMR)Affordable Housing Element. Fund (AHF). Program 5: Housing Mitigation Program- Between 2007 and 2013, 20 Below This program represents a key mechanism Residential Mitigation Market Rate (BMR) units were cre- for affordable housing in Cupertino and Continue to implement the "Housing ated through the Residential Housing is proposed to be included and revised in Mitigation" program to mitigate the need Mitigation Program: the 2014-2022 Housing Element. for affordable housing created by new • 17 BMR rental units (Markham) market-rate residential development. • 3 BMR ownership units(Las Palmas) The City contracts with West Valley Community Services (WVCS)to admin- ister the Below Market-Rate (BMR) Affordable Housing Program which includes placing eligible households in the City's BMR units. Between 2007 and 2013, $1,195,414 had been collected through the Housing Mitigation Program (Office/Industrial and Residential) and deposited to the City's Below Market-Rate (BMR)Affordable Housing Fund (AHF). Program 6:AfFordable Housing Fund Between 2007 and 2013, $1,195,414 The City will continue to utilize the Below Provide financial assistance to affordable had been collected through the Housing Market-Rate (BMR)Affordable Housing housing developments. Expend housing Mitigation Program (Office/Industrial and Fund (AHF)to support affordable hous- funds in the following manner: Residential) and deposited to the City s ing projects, programs and services. This Below Market-Rate (BMR)Affordable program is proposed to be included • Finance affordable housing projects. Housing Fund (AHF). These funds were and revised in the 2014-2022 Housing • Establish a down payment assistance used to support affordable housing proj- Element with a revised expanded list of plan that may be used in conjunction ects, programs and services such as: potential eligible uses of funds. with the BMR program or to make • Project Sentinel- Landlord/Tenant market rate units more afFordable. Mediation Services � Establish a rental subsidy program • �Nest Valley Community Services to make market rate units more (�CS)-BMR Program affordable. Administration • 19935 Price Avenue-Acquisition of affordable housing residential rental property. However,the City did not establish a downpayment assistance program or a rental subsidy program. B-168 DRAFT Housing Element Technical Report Appendix B • ' � ' • • • ' • 1 � 1 � • . � � . . � . , � U� M ��i pPl�� ����'��� #� 1 • � s - � �. 1! 1 , w s - - s• . s r ° •• � � +�'r : � ' B� i'i9 �• • � s• ` • • � � � • Policy 3: Range of Housing Types Program 7: Mortgage Credit Certificate The County of Santa Clara continues to This program is proposed to be included (MCC) Program operate this program. However, given the in the 2014-2022 Housing Element as Participate in the countywide MCC pro- high home prices in Cupertino,the poten- a new program- Referral to Housing gram to assist one to two households tial of utilizing this program is limited. Resources. annually. As of 2013,the maximum purchase price limits were$570,000 for resale properties and $630,000 for new units. Program 8: Move-In for Less Program This program offered by the Tri-County This program is proposed to be removed Apartment Association was discontinued in from the 2014-2022 Housing Element. Program is offered by the Apartments 2010. Association. Program 9: Surplus Property for Housing As part of the 2014-2022 Housing This program is proposed to be included Explore opportunities on surplus proper- Element update and concurrent Land Use and revised in the 2015-2023 Housing ties as follows: Element update,the City has explored Element. and prioritized various vacant and under- • In conjunction with local public utilized properties with potential residen- agencies, school districts and tial and mixed use development within churches, develop a list of surplus the next eight years. These properties property or underutilized property are included in the sites inventory for the that have the potential for residential Housing Element development. • Encourage long-term land leases of property from churches, school districts corporations for construction of affordable units. • Evaluate the feasibility of developing special housing for teachers or other employee groups on the surplus properties. • Review housing programs in neighboring school districts that assist teachers for applicability in Cupertino Program 10:Jobs/Housing Balance The City's General Plan and 2007-2014 This program is proposed to be included Program Housing Element offer adequate capac- and revised in the 2014-2022 Housing Require major new office/industrial devel- ity to accommodate the City's RHNA for Element as key elements of three new opment to build housing as part of new the planning period. The City continues programs- Land Use Policy and Zoning development projects. to implement its Housing Mitigation Provisions, Housing Mitigation Plan- Program to enhance the jobs/housing bal- Office and Industrial Mitigation and ance in the community. Housing Mitigation Plan- Residential Mitigation. DRAFT B-169 2040 GENERAL PLAN City of Cupertino • : • - • � • ' � 11 1 � • . � - � . �am��� �+f....:F 1�����,.hT,,. ��`�'� ` "la� <. '��"��a�����,.. _ �� ��� ���. ,a� •r � � ��s�.,� �'� � � � �'��� • -• " r�� ar• • 1 • 'r — . - •. " » +� — r • . Policy 4: Housing Rehabilitation Program 11:Affordable Housing The City continues to provide informa- This program is proposed to be included Information and Support tion, resources, and support to develop- in the 2014-2022 Housing Element. Provide information, resources and sup- ers. port to developers who can produce affordable housing � �w Policy 5: Development of Affordable Housing Program 12: Density Bonus Program As part of the 2015-2023 Housing This program is proposed to be included Allow for a density bonus and additional Element update,the City is also amend- and revised in the 2015-2023 Housing concessions for development of 6 or ing its Zoning Code to revise the Density Element.Adoption of a new revised more units that provide affordable hous- Bonus Ordinance to be consistent with Density Bonus Ordinance is anticipated to ing for families and seniors State law. be completed concurrent with the 2014- 2022 Housing Element. Program 13: Regulatory Incentives for The City continues to waive park dedica- This program is proposed to be included Affordable Housing tion fees and provide parking ordinance in the 2014-2022 Housing Element. Provide regulatory incentives for afford- Waivers for affordable developments. able housing, such as waiving park dedication fees and construction tax for affordable units, or reducing parking requirement for mixed use developments. Program 14: Extremely Low Income The City continues to support the This program is proposed to be included Housing development of housing affordable to and revised in the 2014-2022 Housing Encourage the development of adequate extremely low income households. Element. The proposed revision will housing to meet the needs of extremely include Housing for Persons with Special low-income households by providing Needs to be added to this program. assistance and funding for affordable housing developments Program 15: Residential and Mixed Use As part of the 2015-2023 Housing This program is proposed to be added Opportunities in or Near Employment Element update and concurrent Land Use as a policy statement to Goal A: An Centers Element update,the City has explored Adequate Supply of Residential Units for Encourage mixed use development and and prioritized various vacant and under- All Economic Segments for the 2014-2022 the use of shared parking facilities in or utilized properties with potential residen- Housing Element to encourage mixed near employment centers. Evaluate the tial and mixed use development within use development. possibility of allowing residentia) develop- the next eight years. These properties ment above existing parking areas. are included in the sites inventory for the Housing Element. B-1 7 0 DRAFT Housing Element Technical Report Appendix B , • o • � � � - � . � - � . � °`;���,;��;.,� ,� _,< 1�� 1 ' s s - �' N 1 � t • � � '� � ��;�, �. '• • ' �• ' • s / • • Program 16: Expedited Permit Procedures The City continues of offer expedited This program is proposed to be included Expedite permit processing for housing Permit processing for affordable housing but revised in the 2014-2022 Housing developments that contain at least 20 projects meeting the State Density Bonus Element as a new program - Incentives percent of units for lower-income house- requirements. for Affordable Housing Development holds, or 10 percent of units for very low- income households, or 50 percent of units for senior citizens. Policy 6: Tax Increment Funds Program 17: Redevelopment Housing Set The Redevelopment Agency was dissolved Program is proposed to be removed from Aside Fund in 2012, pursuant to AB1X26 and AB1X27. the 2014-2022 Housing Element. Develop policies and objectives for the use of those Low and Moderate Income Housing Funds. Policy 7: Housing Densities Program 18: Flexible Residential The City continues to offer flexible devel- Policy 7 and this program are proposed Standards opment standards. to be included in the 2014-2022 Housing Allow flexible residential development Element under Goal A to facilitate a standards in planned residential zon- range of housing options in the commu- ing districts, such as smaller lot sizes, nity. lot widths,floor area ratios and set- backs, particularly for higher density and attached housing developments. Program 19: Residential Development The City continues to provide this regu- This program is proposed to be included Exceeding Maximums latory incentive to facilitate affordable and revised in the 2014-2022 Housing Allow residential developments to exceed housing for persons with special needs. Element as part of a new program— planned density maximums if they pro- However, no development utilized this Housing for Extremely Low Income vide special needs housing incentive between 2007 and 2013. Households and Persons with Special Needs Program 20: Monitor R-3 Development The City continues to monitor its devel- This program is proposed to be included Standards opment standards. Future residential in the 2014-2022 Housing Element as part Monitor the R-3 development standards development is likely to focus in mixed of a new program— Land Use Policy and on a regular basis to ensure that the use areas in the City. As part of the Land Zoning Provisions. requirements do not constrain new hous- Use Element update process conducted ing production. concurrent with the Housing Element update,the City reviewed and proposed modifications to development standards to facilitate multi-family and mixed use development. Program 21: Clarify Language of Planned The Zoning Ordinance was amended in This program was completed in 2010 Development (P) District 2010 to clarify that residential develop- and is proposed to be removed from the Amend the zoning ordinance to clarify ment in the P (Res/R3)zones require a 2014-2022 Housing Element. that residential development in P (Res/R3) planned development permit. zones will require a planned development permit and not a conditional use permit. DRAFT B-1 7 1 2040 GENERAL PLAN City of Cupertino • : � ' • � • ' • � � � � • . � � . . � . , 11 ! � s • •. 11 / � �r s ' as . • -• ' •• s• • i � '• - • •• & w s 1 • • - � �. �.. - � �� ••• ��s.��` �'��� �a���t��?�i�', ���» Policy 8: Maintenance and Repair Program 22:Apartment Acquisition and The City continues to assist non-profits Preserving and improving the quality of Rehabilitation with the acquisition and rehabilitation of housing for lower income households is Provide financial assistance to eligible affordable housing units such as: important to the City. This program is very low and low-income homeowners to • Maitri Transitional Housing proposed to be included and revised in rehabilitate their housing units. Rehabilitation: CDBG funds were the 2014-2022 Housing Element to incor- used to rehabilitate this four-unit porate both rehabilitation efforts for both transitional housing for victims of single-family and multi-family rehabilita- domestic violence. Project was tion. completed in 2010. • Senior Housing Solutions— 19935 Price Avenue:Acquisition and rehabilitation of this property using the Below Market-Rate(BMR) Affordable Housing Fund (AHF)and Community Development Block Grant (CDBG)funds and was completed in 2011. This home is now occupied by five low income seniors. Policy 9: Conservation of Housing Stock Program 23: Preservation of "At Risk The City did not experience a loss of any The City works to preserve its affordable Units" "at risk" affordable units converting to housing stock. This program is proposed Monitor owners of at-risk projects on an market-rate during the planning period to be included and revised in the 2014- ongoing basis to determine their inter- 2022 Housing Element. est in selling, prepaying,terminating or continuing participation in a subsidy pro- gram. Work with owners,tenants, and nonprofit organizations to assist in the nonprofit acquisition of at-risk projects to ensure long-term affordability of develop- ments where appropriate. Program 24: Condominium Conversions The City continues to implement the This program is proposed to be included Continue to implement to Condominium Condominium Conversion Ordinance. and revised in the 2014-2022 Housing Conversion Ordinance. Element. B-1 7 2 DRAFT Housing Element Technical Report Appendix B � ' � ` • � • • / 1 1 � � . , � . � , :�,��w�,.,�m rc�� wq�� ,��ua�roq�"� ;m:a .,��,,., .> ... , ... , _ . . , �- � ��,� � �„� �� , . . , y� , � ,A a�.- �t..,� w� • _ � � ra>s,yW o. � . , � , . , r.< � � � „ w � a, ,M„ „ . M n�,.., a .,... U �..�. ..,.,. M , , . ,w.,N. :��:,,... . �r,. „ ,r,. s• i ��•• t� •. • �. * • Program 25: Rental Housing Preservation The City has explored the extent to The City will continue to explore the Program which the proposed Rental Housing extent to which existing rental housing Develop and adopt a program that would Preservation Program is consistent with can be preserved consistent with State grant approval only if at least two of the State laws such as the Ellis Act and the law as part of the 2014-2022 Housing following three circumstances exist: Costa Hawkins Act. Element. • The project will comply with the City's BMR Program based on the actual number of new units constructed, not the net number of units; and/or • The number of rental units to be provided on the site is at least equal to the number of existing rental units; and/or • No less than 20 percent of the units will comply with the City's BMR Program. Program 26: Conservation and The City contracts with Rebuilding The City recognizes the importance of Maintenance of Affordable Housing Together Silicon Valley(RTSV)to provide maintaining and improving its existing Develop a program to encourage the home safety repairs and mobility/acces- housing stock. This program is proposed sibility improvements to income-qualified to be included in the 2014-2022 Housing maintenance and rehabilitation of residen- owner-occupants using CDBG funds. The Element as a new program - Residential tial structures to preserve the older, more focus of this program is on the correc- Rehabilitation. affordable housing stock. tion of safety hazards. Between 2007 and 2013, 31 households were assisted through this program. Program 27: Neighborhood and The Environmental Services division orga- This is an ongoing program and is pro- Community Clean Up Campaigns nizes an annual city-wide garage sale to posed to be included in the 2014-2022 Continue to encourage and sponsor encourage reuse of items which ordinarily Housing Element. neighborhood and community clean up might end up in the landfill. Also,the divi- campaigns for both public and private sion organizes community creek clean-up properties. campaigns. Policy 10: Energy Conservation Program 28: Energy Conservation The City continues to enforce Title 24. This is a function of the Building Division Opportunities and is proposed to be included as a sepa- Continue to enforce Title 24 requirements rate housing program in the 2014-2022 for energy conservation and evaluate Housing Element. utilizing suggestions as identified in the Environmental Resources/Sustainability element. DRAFT B- 1 7 3 2040 GENERAL PLAN City of Cupertino � : • ' • � • ' • 11 1 � • . � - � . ������m������, �,, 11 1 ' s • a» 11 � � • mw - as �. _« �r� �� �:. 's a ' w+n ' � • (1 a • Program 29: Fee Waivers or Reduction for The City adopted a Green Building This program is proposed to be included Energy Conservation Ordinance in 2013 to facilitate energy and revised in the 2014-2022 Housing Evaluate and implement the potential to conservation efforts. Residential and Element. provide incentives, such as waiving or nonresidential new construction, addition, reducing fees,for energy conservation and renovation are required to comply improvements to residentia) units (exist- W�th the Green Building Ordinance. � ing or new). Program 30: Energy Efficiency Audits Energy audits were offered through an The ARRA program expired in 2012.This Offer free energy efficiency audits for ARRA grant by the Public Information program is proposed to be removed from residential units under a contract with Office through a contract with Actera. the 2014-2022 Housing Element. Acterra. Program 31: Energy Conservation in The City also adopted a Green Building This program is proposed to be included Residential Development Ordinance in 2012 to encourage energy in the 2014-2022 Housing Element. Continue to encourage energy efficient conservation efforts. residential development and provide tech- nical assistance to developers who are interested in incorporating energy efficient design elements into their program. •. � » a- --• • s • Policy 11: Special Needs Households Program 32: Emergency Shelters The City revised the Zoning Ordinance in This program is proposed to be revised 2010 to permit emergency shelters in the in the 2015-2023 Housing Element to Revise the Zoning Ordinance to allow ��gQ�� Quasi-Public zoning districts as a remove the requirement that emergency permanent emergency shelter facilities in permitted use. shelters be located in churches. "BQ" Quasi-Public zoning districts as a permitted use. Program 33: Rotating Homeless Shelter West Valley Community Services (WVCS) The City recognizes the critical need to successfully managed the Rotating provide homeless prevention and emer- Continue to support the rotating emer- Shelter Program for 18 years. The gency shelter services for the homeless gency shelter operated by West Valley Rotating Shelter Program is now operat- in the region. This program is proposed Community Services ed through Faith in Action Silicon Valley. to be included in the 2014-2022 Housing Element. Program 34:Transitional and Supportive The City revised the Zoning Ordinance in The Zoning Ordinance amendment pro- Housing 2010 to provide transition and supportive gram was completed in 2010. This pro- Amend its zoning ordinance to com- housing as a residential use to be permit- gram is proposed to be removed from ply with the requirements of SB2. ted in similar manners as similar uses in the 2014-2022 Housing Element. Transitional and supportive housing will the same zones. be treated as residential uses and be sub- ject to the same development standards �n 2008,the City contributed $800,000 to and restrictions that apply to similar hous- Maitri, a non-profit agency providing tran- ing types in the same zone. sitiona) housing to victims of domestic violence, for the purchase of a four-plex in Cupertino. The project was completed i n 2010. B-1 7 4 DRAFT Housing Element Technical Report Appendix B � : � ' • � • ' • 11 1 � • - . � - - � . 1� �� a e � s. �� IE �� � s • ` s s . �� • � -•� * ar « «�� � �F �d�@� � �i • r •• „ � • . f� ' • f • Program 35: Catholic Social Services Catholic Charities continues to provide The City will continue to provide a range (Single Parents) the shared housing services through the of supportive services to its residents, Provide help, Catholic Social Services,to Urban County CDBG program. especially those with special needs, in place single parents in shared housing order to foster a suitable living environ- situations through the Santa Clara County ment. A new program is proposed to be Urban County programs. included and revised in the 2014-2022 Housing Element to reflect the range of services that may be supported by the City. Program 36: Flexible Parking Standards The City continues to offer reductions in This program is proposed to be included Consider granting reductions in off-street Parking requirements on a case-by-case in the 2014-2022 Housing Element. parking on a case-by-case basis for senior basis for senior housing. However, no housing. new senior housing project was devel- oped between 2007 and 2013. s. a � � . . •... Policy 12: Housing Discrimination Program 37: Santa Clara County Fair The City continues to participate in the This program is proposed to be included Housing Consortium Fair Housing Consortium. Fair housing and revised in the 2014-2022 Housing Distribute fair housing materials at all materials distributed by various organiza- Element public facilities throughout the City and tions are available at public counters. also has a booth at public events to dis- tribute materials. Program 38: Fair Housing Outreach The City continues to contract with This program is proposed to be included Continue to contract with ECHO Housing Eden Council for Hope and Opportunity in the 2014-2022 Housing Element as a to provide fair housing outreach services. �ECHO)to provide fair housing services, new program - Fair Housing Services. including outreach and education, coun- seling, and investigation of fair housing complaints. Also Project Sentinel pro- vides tenant/landlord mediation services under contract for the City. Program 39: Reasonable Accommodation The City adopted the Reasonable This program was completed in 2010 Ordinance Accommodation Ordinance in 2010 and is proposed to be removed from the Adopt a written reasonable accommoda- 2014-2022 Housing Element. tion ordinance to provide persons with disabilities exceptions in zoning and land- use for housing. .,, .r . . . s« 11 Policy 13: Coordination with Local School Districts Program 40: Coordination with Local City staff continues to meet with the The City recognizes the importance of School Districts school districts to discuss facility needs. addressing development impacts on the Form a new committee of key staff from However, no formal committee was school districts. This program is pro- the City and the school districts to meet established. posed to be included and revised in the on a bi-monthly basis or as needed to 2014-2022 Housing Element. In addition, review City planning initiatives, develop- the proposed new revised program will ment proposals and School capital facili- reflect coordination with other agencies, ties and operating plans. organizations, and neighboring jurisdic- tions to address regional housing issues. DRAFT B-175 2040 GENERAL PLAN City of Cupertino • ' ' � ' • � ' � ' � 1 1 1 � °�, � m� �s .� • RH NA 341 229 243 357 1170 Construction 25 23 27 587 662 % of RH NA 7.3% 10.0% 11.1% 164.4% 56.6% Sources:City of Cupertino,2014;ABAG,2014 7.3. Parcel-Specif ic Sites Inventory Table Local housing elements must identify sites that can accommodate the city's share of the regional housing need as well as quantify the housing unit capacity of those sites. Moreover, the sites must be suitable, appropriate and available within the planning period to accommodate the housing needs of all income groups. The sites inventory must be presented on a parcel-specific basis. Cupertino's sites inventory to meet the 2014-2022 RHNA allocation identifies a total of 1,386 units. Detailed information on each parcel included in the inventory is presented in Table 7.3. B-176 DRAFT Housing Element Technical Report Appendix B � � • • • 1 , - • �� � � ',..���i� ���,��.,II� I���° .i�`���.���'�' ��� .�,.,� „:� , ,o , ;q�p, rn �s ��1h�!���I) , ��� <�: , � �:�. � 7 a r • # * �.. t ... . •. � � 1: Oaks Shopping Center 326 27 040 C/O/R P(CG,Res) 35 0.64 19 1: Oaks Shopping Center 326 27 039 C/O/R P(CG,Res) 35 5.40 160 1: Oaks Shopping Center common area C/O/R P(CG,Res) 35 0.72 21 1: Oaks Shopping Center 326 27 041 C/O/R P(CG,Res) 35 1.20 35 2: Vallco Mall East and West 316 20 107 C/O/R 35 2: Vallco Mall East and West 316 20 080 C/O/R 35 2: Vallco Mall East and West 316 20 082 C/O/R 35 2: Vallco Mall East and West 316 20 081 C/O/R 35 2: Vallco Mall East and West 316 20 101 C/O/R 35 2: Vallco Mall East and West 316 20 106 C/O/R P(Regional 35 2: Vallco Mal) East and West 316 20 104 C/O/R Shopping, 35 47.83 600 2: Vallco Mall East and West 316 20 105 C/O/R OP, Res) 35 2: Vallco Mall East and West 316 20 100 C/O/R 35 2: Vallco Mall East and West 316 20 092 C/O/R 35 2: Vallco Mall East and West 316 20 099 C/O/R 35 2: Vallco Mall East and West 316 20 094 C/O/R 35 2: Vallco Mall East and West 316 20 095 C/O/R 35 3: The Hamptons 316 O6 032 High P(Res) 65 6.33 Density 344 3: The Hamptons 316 06 037 High P(Res) 65 6.11 Density 4: United Furniture (East) 369 06 011 C/O/R P(CG,Res) 25 0.62 13 4: United Furniture (East) 369 06 007 � C/O/R P(CG,Res) 25 0.63 13 4: United Furniture (East) 369 06 005 C/O/R P(CG,Res) 25 0.39 8 4: United Furniture 369 Ob 002 C/O/R P(CG,Res) 25 0.92 20 4: United Furniture 369 O6 003 C/O/R P(CG,Res) 25 0.53 11 4: United Furniture 369 O6 004 C/O/R P(CG,Res) 25 1.29 27 4: United Furniture NA C/O/R P(CG,Res) 25 0.50 11 5: Glenbrook Apartments 326 27 036 Medium R3(10-20) 2� 11.62 Density 93 5: Glenbrook Apartments 326 27 037 Medium R3(10-20) 20 19.72 Density 6: Barry Swenson Site 375 07 001 C/O/R P(CG,Res) 25 0.55 11 Tota) 90.88 1,386 Notea: Realistic capacity for each site reduces the maximum developable units by 15 percent. Residential capacity for Sites 3 and 5 reflect the net increase in units. Source:City of Cupertino,2014 DRAFT 8-177 2040 GENERAL PLAN City of Cupertino � i � • • 1 � � • , I . . � J i P ��. ��p��I'�� �I� 1' I�I p��k�\0� d(+� � I: �`���41 "q���i AP� ��� .e,.k. re�, � 7 e �, �° ,.„ba�ea•¢+� i ,s„�� p�„ s � 1 • .4. '�. • 1: Oaks Shopping Center Yes Parking VTA PDA Plan EIR 1: Oaks Shopping Center Yes Shopping center VTA PDA Plan EIR 1: Oaks Shopping Center Yes Shopping center VTA PDA Plan EIR 1: Oaks Shopping Center Yes Parking VTA PDA Plan EIR 2: Vallco Mall East and West Yes Shopping center -- Plan EIR 2: Vallco Mall East and West Yes Shopping center, parking -- Plan EIR 2: Vallco Mall East and West Yes Shopping center, parking -- Plan EIR 2: Vallco Mall East and West Yes Shopping center -- Plan EIR 2: Vallco Mall East and West Yes Shopping center -- Plan EIR 2: Vallco Mall East and West Yes Shopping center -- Plan EIR 2: Vallco Mall East and West Yes Shopping center -- Plan EIR 2: Vallco Mall East and West Yes Shopping center -- Plan EIR 2: Vallco Mall East and West Yes Shopping center -- Plan EIR 2: Vallco Mall East and West Yes Parking -- Plan EIR 2: Vallco Mall East and West Yes Shopping center, parking -- Plan EIR 2: Vallco Mall East and West Yes Shopping center, parking -- Plan EIR 2: Vallco Mall East and West Yes Shopping center -- Plan EIR 3: The Hamptons Yes Multi family housing -- -- 3: The Hamptons Yes Multi family housing -- -- 4: United Furniture (East) Yes Small commercial buildings VTA PDA Plan EIR 4: United Furniture (East) Yes Gas Station VTA PDA Plan EIR 4: United Furniture (East) Yes Small commercial buildings VTA PDA Plan EIR 4: United Furniture Yes Small commercial center VTA PDA Plan EIR 4: United Furniture Yes Furniture store VTA PDA Plan EIR 4: United Furniture Yes Parking lot VTA PDA Plan EIR 4: United Furniture Yes ROW VTA PDA Plan EIR 5: Glenbrook Apartments Yes Multi family housing -- Plan EIR 5: Glenbrook Apartments Yes Multi family housing -- Plan EIR 6: Barry Swenson Site Yes Vacant VTA PDA Plan EIR Notea:Realistic capacity for each site reduces the maximum developable units by 15 percent.Residential capacity for Sites 3 and 5 reflect the net increase in units. Source:City of Cupertino,2014 B-1 7 8 DRAFT Prioritized list of Alternative Housing Element Sites Exhibit HE-2 Site Land Use Proposed NamelType Address Size Priority Realistic Capacity No. DesignaHon Zoning Marina Plaza/Property Commercial/ 204 1 10118 Bandley Drive 6.86 P(CG,Res) Moderate* Owner Interest Office/Residential 35 du/ac Stevens Geek Office Center/ Commercial/ 187 2 20823 Stevens Creek Blvd 6.31 P(CG,Res) Moderate Property Owner Interest Residential 35 du/ac Cypress Building/Hall 19200,19220&19280 105 3 Property/Workshop Stevens Creek Blvd 4.98 Commercial/ P(CG,Res) Moderate* Pro er O osite Main Street Office/Residential P h' � PP ) 25 du/ac Shan Restaurant,Q-Mart& 20007,20021 Stevens Creek 36 Commercial/ Low- 4 China Dance/Existing HE Blvd&10041 N.Blaney 1.69 P(CG,Res) and Lot Consolidation Ave Office/Residential Moderate* 25 du/ac 10029 Judy Ave,19060 Commercial/ Low- 27 5 Loree Center/Existing HE 1.29 P(CG,Res) Stevens Creek Blvd Office/Residential Moderate 25 du/ac Homestead Lanes+ 151 20916,20956,20990 Commercial/ Low- 6 Adjacency/Workshop 5.1 P(CG,Res) Homestead Rd Residential Moderate* 35 du/ac Proposed Summerwinds&Granite 96 1451,1471,1491&1505 S Commercial/ Low- 7 Rock/Property Owner 4.57 P(CG,Res) De Anza Blvd Office/Residential Moderate* 25 du/ac Interest Total Units on Alternate Housing Element Sites 806 Notes: * Separate parcels on a Housing Element site shall be combined,master planned and developed under a Master Developer.