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CC/PC Staff Report 04-01-2014 DEPARTMENT OF COMMUIVITY DEVELOPMENT CITY HALL 10300 TORRE AVENUE • CUPERTINO,CA 95014-3255 (408)777-3308 • FAX(408)777-3333 CUPERTINO PLANNING COMMISSION/CITY COUNCIL STAFF REPORT Meeting: A�ril 1, 2014 A�enda Item No. 1 SUBJECT: Study Session to review the Housing Plan section of the 2014-2022 Housing Element. RECOMMENDATION: Staff recommends that the Planning Commission and City Council accept the reports on Accomplishments on 2007 - 2014 Housing Element and provide comments on the draft Goals and Policies for the 2014-2022 Housing Element. BACKGROUND: Housing Element Overview In accordance with State law�, California cities must have an adopted General Plan, which must contain a Housing Element. Housing Element law requires that all jurisdictions facilitate housing development by creating policies and adopting land use plans and regulatory schemes that provide opportunities for housing development, including units that could accommodate households with extremely low, very low, low, moderate and higher incomes. State law requires that each city and county update its Housing Element on a pre-determined cycle. For the current cycle, the updated Housing Element must be adopted by January 31, 2015 (plus a 120-day grace period). If this adoption deadline is met, the planning period for this cycle extends from adoption to January 31, 2023 (or eight years). Otherwise, the City must update the Housing Element again in 2019 (every four years). The City Council approved the project scope of work and authorized the budget for the project on November 4, 2013. Regional Housing Needs Allocation (RHNA) The RHNA is an estimate of projected needed housing units throughout the State and is based on Department of Finance population projections and regional population and employment forecasts. 10 Page 2 Planning Commission/City Council Housing Element Study Session March 19,2014 The RHNA identifies Cupertino's regional housing needs by income levels: � � • � � • Very Low (5 50% of Area Median Income(AMI)) 356 Low(51 -SO% of AMI) 207 Moderate(81 - 120% of AMI) 231 Above Moderate(> 120% of AMI) 270 Total 1,064 The City is not obligated to construct the housing units identified by the RHNA. Rather, the City's responsibility is to demonstrate adequate capacity, by identifying specific sites, to satisfy the RHNA under existing zoning and land use policy. HCD generally requires jurisdictions to show a surplus of sites/units in order to guarantee that the City could realistically accommodate the RHNA allocations. The Housing Commission, Planning Commission, and City Council have conducted multiple study sessions and community workshops to review potential housing sites to meet the RHNA. On March 4, 2014, the City Council provided direction on the sites that would be studied in the EIR. Sites were presented in two tiers of priority: High and Moderate. These sites consistently met criteria set by both the State and the City presenting realistic potential for housing development during the planning cycle. While all sites will be studied in the EIR, final decisions on potential sites to be included in the Housing Element will be made by City Council in the fall. Housing Plan Required by State law, the Housing Element includes a Housing Plan section, �vhich outlines the goals, policies, and implementation programs to guide the City's housing policy. State law requires that the Housing Plan section address the maintenance, preservation, improvement, and development of housing. In addition, the Housing Plan section must include implementation programs that achieve the following: 1) Make sites available to meet the RHNA 2) Assist in the development of adequate affordable housing 3) Address, and where legally possible, remove governmental constraints to housing improvement and development 4) Conserve and improve the condition of existing affordable housing 5) Promote equal housing opportunities regardless of race, religion, sex, marital status, etc. 6) Preserve affordable housing developments that may be at risk of converting to market-rate The Housing Plan section must also identify appropriate funding sources, timeframes for completion, and responsible parties for each implementation measure. 11 Page 3 Planning Commission/City Council Housing Element Study Session March 19,2014 General Plan Amendment and Environmental Review In addition to the Housing Element, the City is also preparing a General Plan Amendment (GPA) for City Council consideration, as directed by the City Council in August 2012. The primary purpose of the GPA is to replenish, re-allocate, and potentially increase citywide development allocations in order to plan for anticipated future development activity while keeping with the community's character, goals, and objectives. The secondary purpose of the GPA is to consolidate development requests by several property owners for amendments to the General Plan, under a comprehensive community vision. The environmental review for the General Plan and Housing Element projects is being completed concurrently and ��ill be presented in an Environmental Impact Report (EIR). It is anticipated that the Draft EIR will be available in Summer 2014. DISCUSSION: 2007-2014 Housing Element Housin� Plan As part of the 2007-2014 Housing Element drafting, a wide-ranging public outreach effort �vas undertaken, including interviews with stakeholders, public meetings, and study sessions with decision makers. These meetings contributed to the development of the goals, policies, and implementation programs that were ultimately adopted in the 2007-2014 Housing Element (adopted in 2010). Update to the Housin�Plan for 2014-2022 Four years later, the 2014-2022 Housing Element draws strongly from the 2007-2014 Housing Element. After recent significant public input (including stakeholder interviews in 2013, two community workshops, and three study sessions—outlined in more detail belo�n� under Public Noticing and Outreach) the City has received input that very closely reflects the input received for the previous Housing Element and the resulting Housing Plan. As such, the public outreach thus far has indicated no significant, broad-reaching changes to housing policy. The City's consultant, the team of MIG and Veronica Tam and Associates, has considered public input to date and taken the following steps in reviewing the existing Housing Element and developing proposed amendments to the proposed Housing Plan: ■ Revise programs to ensure the Housing Element complies with State Housing Element law, including efforts to encourage housing opportunities for extremely low-income households (AB 2634) and persons with developmental disabilities (SB 812); ■ Introduce a new goal to highlight City efforts in energy conservation regarding new and existing development. ■ Add additional policy related to mixed-use development to encourage development on identified sites to meet the RHNA; and ■ Reformatting to reduce redundancy and reorganizing for ease in reading and implementing. 12 Page 4 Planning Commission/City Council Housing Element Study Session March 19,2014 Attachment A provides a summary of the accomplishments on the previous (2007-2014 Housing Element) implementation programs, with an added discussion of proposed program recommendations for the 2014-2022 Housing Element. Building on the policy direction of the previous Housing Element, recent public outreach efforts, and the GPA vision and planning principles, staff has outlined proposed goals, policies, and programs for the 2014-2022 Housing Element as indicated in Attachment B. Attachment C provides a detailed matrix table of each proposed program with a program description and relationship to proposed goals and policies for the upcoming 2014-2022 Housing Element. Attachment D outlines proposed revisions to the existing Housing Element's goals and policies. Affordable Housing Funding The City of Cupertino has access to a variety of existing and potential funding sources for affordable housing activities. A summary of each of these financial resources is available in Attachment E. These include programs from federal, state, local, and private resources, including: ■ U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) Program ■ City's General Fund Human Service Grants (HSG) Program ■ City's Below Market-Rate (BMR)Affordable Housing Fund (AHF) ■ Housing Trust Silicon Valley ■ Santa Clara County Office of Affordable Housing-Mortgage Credit Certificate Program ■ Housing Authority of the County of Santa Clara (HACSC) - Housing Choice Voucher Program ■ Low-Income Housing Tax Credits (LIHTCs) ■ Potential participation in the County Consortium for HOME Investment Partnerships Program (HOME) funds Redevelopment Funding 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 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. BMR (Below-Market Rate)Mitigation Program Cupertino retains elements of an affordable housing program—its Housing Mitigation Program—as a resource. However, a 2009 court-case (Palmer vs. 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 13 Page 5 Planning Commission/City Council Housing Element Study Session March 19,2014 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' to the impacts of the project on the need for affordable housing. In a previous California Supreme Court case, Sterling Pc�rk 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 methodology and facts justifying the fee may have changed and therefore, the City intends to update its nexus study on the BMR mitigation fees in the fiscal year 2014-2015 to determine appropriate housing mitigation fees. For Cupertino, key items to address in the Affordable Housing topic include updating the nexus study and housing mitigation requirements given the Pc�lmer decision and continuing legal challenges to affordable housing programs. An existing program, the Rental Preservation Program, is retained as a placeholder so that additional review of similar programs in other jurisdictions may be conducted to determine whether this may be modified or retained. Options for Council review will be presented with the Draft Housing Element in Fa112014. Housing Commission Studv Session on Housing Plan On March 19, 2014, the Housing Commission held a study session to review accomplishments that the City achieved on the previous Housing Element and discuss potential changes to goals, policies, and implementation programs from the 2007-2014 Housing Element. The City's consultant provided a presentation to review the goals and policies proposed for the Housing Element Update. Minor updates and reorganization is proposed to the goals and policies and the general intent remains consistent with the vision of the existing Housing Element. The Housing Commission discussed the presentation and noted that there is a growing need for affordable housing in the community; however, it often meets with community resistance — likely due to lack of awareness and education. The Commission recommended increasing education and awareness on affordable housing issues. Picblic Commetits Comments from the public are summarized below with staff comments in italics, where appropriate. 14 Page 6 Planning Commission/City Council Housing Element Study Session March 19,2014 ■ New market-rate housing tends to have households with many cars, increasing traffic problems. Senior housing, on the other hand does not have the same level of traffic impacts -EiTvironmentql reviezv on traffic is curreiitly underz��ay and zvill assess potential traffic impacts afid zvill identifi� niitigatio�i measures that to mitigate the pntential impacts. Tl1e Draft EIR zi�ill be available for public reviezv and eomment this summer. ■ Housing needs to be distributed throughout the community -Pre�posed sites meet the criteria of ABAG's Ofie Bay Area Plan of developing along the existirig VTA PDA's. Sites being studied in the EIR ificlude sites that meet HCD criteria located in southern and znesterri parts of the City. ■ Citizens have been pushing for granny units to be used to meet the RHNA, but the City has been diseouraging that - Use of second units to meet the RHNA is specifically regulated b� State lazv. The City may only project the number of second uriits to be eredited tozvard the RHNA based on historical trends in terms of nicmber of units and demonstrated affordability. During the last seven years, only 31 second ufiits had been constructed. At the maximum, the Cit� can assume a similar level of seco�ic� units to be constructed over the �1ext eigllt years. ■ Rather than increasing density, encourage smaller units that will be affordable to seniors and single persons - The Housing Element includes Polic�5:Range of Housing Types "Encourage t11e development of diverse 1lousirig stock that provides a range of hoitsing types (induding smaller, modernte cost housing) and affordc�bility levels." Hozuez�er, tlie City must not take netions that zvill make housing tiincrvail�ble to families with ehilc�ren. ■ School impacts are a concern. If Alternative A in the Environmental Impact Report (EIR) can meet RHNA, the City should not consider Alternatives B and C - Pursuant to SB 50, the City is not permitted to consider the e�Tviroramefital impnets on the need for school facilities if a developer pays scl2ool impact fees. Additionally, CEQA requires an EIR to analyze a reasofiable range of c�lterriatives to the proposed projeet. Hoz��ever,for some projeets, there is the potentinl for negotic�ted Developmefit Agreemeiits to result in additional beflefits to schools such a�fundirig for facilities, provision of fAcilities znithin the developme�it site, or funding for operational costs. ■ Mixed use development is not working. Most developers are interested in developing the residential portion of the project and do not include substantial commercial uses or parking, and the retail portions end up being poorly planned/designed and therefore, unsuccessful — Poteritial sites identified for inclusion in the Housing Element are intended to tiest facilitate mixed- u�e development, especially at corner pro�erties znhere con�mercial uses are most viable. Suggestions for lot consolidatioii for potential housing element sites ide�itified have also beefi based on experience from previous mixed-use developments. Additionally, site plan�iing for nez��er developments is based ori staff's experience from site planning zvith past developments. ■ Energy conservation mechanisms can lead to cost savings and more affordable housing -Afi existing policy to support efiergy conservntion in rehnbilit�tion l�as now been added as a nezv goal for rzll construction —rehabilitation cznd nezv construction. The Housing Commission accepted the reports and recommended forwarding the goals and policies as proposed to the Planning Commission and City Council for their consideration. 15 Page 7 Planning Commission/City Council Housing Element Study Session March 19,2014 PUBLIC NOTICING & OUTREACH The following outreach efforts have been undertaken on this project to date. Postcards A postcard was delivered in February 2014 to all postal addresses in the City to announce upcoming dates on the General Plan and Housing Element projects. The postcard also provided a brief description of the two projects and identified the project website where interested persons may sign up for project updates and further notices. Website A website has been set up for the combined General Plan and Housing Element projects at �vw��.cupertinogpa�org. All technical reparts, notices and other important information are available at the website. The website also has a separate tab for the Housing Element project which provides answers to Frequently Asked Questions. Interested persons may also submit comments at the website. Meetin�s Stakeholder Interviezus — Stakeholder interviews were conducted on December 11 & 12, 2013 to solicit input from stakeholders ranging from community members, property owners, housing developers, service providers, School Districts and the business community. Ioint PC/HC Worksho�—On January 23, 2014 the Planning Commission and Housing Commission hosted a joint workshop to begin the Housing Element Sites discussion. Eleven participants broke into small groups and identified potential future sites for housing and criteria for increased density in certain areas including community benefits. Participants drew on maps and placed stickers to identify potential housing sites. Februari� 12 Housing Cnmmission Worksho� — On February 12, 2014 the Housing Commission hosted a workshop to continue the Housing Element Sites discussion and prioritize sites for inclusion in the Housing Element. Following a project update presentation, approximately fifteen (15) participants broke into three groups and discussed identification of new sites and prioritiring potential housing sites to meet the RHNA of 1,064. The Housing Commission recommended for�varding all the sites highlighted by the workshop participants as priority sites to the Planning Commission for consideration. February 19 Plc�fining Commission Open House atid Studtt 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 and prioritize sites for inclusion in the Housing Element. The planning commission recommended criteria to focus the sites selection. Specifically, the Commission recommended removing certain 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). In addition, the Planning Commission recommended including sites that would further the following three goals: distribute housing 16 Page 8 Planning Commission/City Council Housing Element Study Session March 19,2014 throughout the city, encourage development along the Priority Development Area designated by the One Bay Area Plan, and minimize impacts to schools. March 4 Citi� Couricil Studu 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 Impact Report. A detailed list of"High" and "Moderate" priority sites was proposed, based on previous public and Commission input. The Council recommended including two additional sites, which had previously been included in the last Housing Element, and provided direction to study in the EIR all sites presented as "High" and "Moderate". The Council was also advised at this meeting that impact to schools may not be a goal of the site selection exercise since SB-50 preempts this issue with the adoption of School Impact Mitigation fees which fully mitigate any school impacts from development of property. March 11 Environmental Review Scoping MeetiriQ — On Mareh 11, 2014, the City held a Seoping Meeting to discuss the Environmental Review of the combined General Plan Amendment and Housing Element update project. The meeting provided an opportunity for the community to comment on the scope and content of the EIR. Mnreh 19 Housing Commission Meeting on Housing Polic� - On Mareh 19, 2014, the Housing Commission held a study session to discuss revisions to housing goals, policies, and programs associated with the Housing Element update. More detail on this meeting is summarized above under "Update to the Housing Plan for 2014-2022" section. The following table summarizes the noticing for this meeting: Notice A enda ■ Email sent to all interested parties ■ Posted on the City's official notice bulletin signed up through the project website board �five days prior to the hearin�) ■ Posted on the City of Cupertino's Web site (five days prior to the liearing) ■ Posted on the project Website (fiz�e days prior to hearing) CONCLUSION The goal for this study session is to provide comments on proposed goals and policy revisions and identify any additional goals, policies, or implementation programs for inclusion in the 2014-2022 Housing Element update. Prepared by: Piu Ghosh, AICP, Senior Planner Christopher "C.J." Valenzuela, Senior Housing Planner MIG, Consultant to the City of Cupertino Reviewed by: Gary Chao, Assistant Director of Community Development Aarti Shrivastava, Director of Community Development Approved by: David Brandt, City Manager 17 Page 9 Planning Commission/City Council Housing Element Study Session March 19,2014 Attachments: A. Summary of Accomplishments of 2007-2014 Housing Element Implementation Programs B. Summary of proposed 2014-2022 Housing Element Goals, Policies and Programs C. Summary Matrix Table of proposed 2014-2022 Housing Element Programs and Relationship to Goals and Policies D. Proposed Revisions of 2007-2014 Housing Element Goals and Policies E. Summary of Financial Resources for Housing 18 ATTACHMENT A Summary of Accomplishments of 2007-2014 Housing Element Implementation Programs Proposed 2014-2022 Housing 2007-2014 Housing Element Goals, 2007-2014 Housing Element Program Proposed 2014-2022 Housing Element Element Program Policies and Programs Accomplishments Recommendation Changes to Program Language � . � � • . � . � . • � � � � Polic�1: Sitfficiently Residentir�ll�Zo�zed Land for Nezv Construction Need Program 1:Zoning and Land Use The City completed the rezoning of 7.98 This program is proposed to be New Program 1: Land Use Policv and Designations acres of land from 10 du/ac to 25 du/ac in included and revised in the Zonin�;Provisions Rezone one property (APN: 326-10- 2010. The City is currently updating the 2014-2022 Housing Element to The City will continue to: 046) of 7.98 acres from 10 units per Land Use Element concurrent with the reflect the need to maintain an • Provide adequate capacity through its acre to 25 units per acre to Housing Element update. The Land Use inventory of sites to Land Use Element and Zoning accommodate up to 199 units. Element update will likely result in accommodate the new RHNA Ordinance to accommodate its RHNA additional sites for residential and mixed of 1,064 units. of 1,064 units, while maintaining a use development to accommodate the balanced land use plan that offers fifth cycle RHNA of 1,064 units. opportunities for employment growth, commercial/retail activities, services, and amenities. • Monitor its development standards to ensure they are adequate and appropriate to facilitate a range of housing in the community • Monitor its sites inventory and make it available on Cit website. Program 2: Second Dwelling Unit Between 2007 and 2013, 31 second units This program continues to be New Program 2: Second Dwellin Units Ordinance were constructed in the City. appropriate for the City and is The City will continue to implement the Continue to implement ordinance to proposed to be included in the Second Dwelling Unit Ordinance and achieve 25 second units 2014-2022 Housin Element. encoura e the roduction of second units. Program 3: Encourage Lot The City continues to provide assistance This is an ongoing activity and New Program 3: Lot Consolidation Consolidation to property owners regarding lot is proposed to be included and The City will continue to: Continue to encourage lot consolidation. revised in the 2014-2022 • Encourage lot consolidation when consolidation through master plans. Housing Element. contiguous smaller, underutilized Provide technical assistance to parcels are to be redeveloped. property owners. • Encourage master plans for such sites with coordinated access and circulation. Page 1 of 19 19 Summary of Accomplishments of 2007-2014 Housing Element Implementation Programs 2007-2014 Housing Element Goals, 2007-2014 Housing Element Program Proposed 2014-2022 Housing Proposed 2014-2022 Housing Element Policies and Programs Accomplishments Element Program Changes to Program Language Recommendation • Provide technical assistance to property owners of adjacent parcels to facilitate coordinated redevelopment where appropriate. • Encourage intra- and inter-agency cooperation in working with applicants at no cost prior to application submittal for assistance � with reliminar lan review. � . : � � . . . � � � � • � � � � Polici�2:Ho�rsingMitigation PlatT Program 4: Housing Mitigation Plan Between 2007 and 2013, $1,195,414 had This program represents a key New Program 5: Office and Industrial —Office and Industrial Mitigation been collected through the Housing financing mechanism for Housin Mitigation Program Continue to implement Office and Mitigation Program (Office/Industrial and affordable housing in The City will continue to implement the Industrial Mitigation fee program. Residential) and deposited to the Below Cupertino and is proposed to Office and Industrial Housing Mitigation Market-Rate (BMR) Affordable Housing be included and revised in the Program. Fund(AHF). 2014-2022 Housing Element. This program requires that developers of office, commercial, and industrial space pay a fee, which will then be used to support affordable housing for families who work in Cupertino but live elsewhere. These fees are collected and deposited in the City's Below Market-Rate (BMR)Affordable Housin Fund (AHF). Page 2 of 19 20 Summary of Accomplishments of 2007-2014 Housing Element Implementation Programs Proposed 2014-2022 Housing 2007-2014 Housing Element Goals, 2007-2014 Housing Element Program Proposed 2014-2022 Housing Element Element Program Policies and Programs Accomplishments Changes to Program Language Recommendation Program 5:Housin�Mitigation Between 2007 and 2013, 20 Belo�v Market This prograin represents a key New Program 6: Residential Housin� Program—Residential Miti a� tion Rate (BMR) units were created through mechanism for affordable Mitigation Program Continue to implement the "Housing the Residential Housing Mitigation housing in Cupertino and is The City will continue to implement the Mitigation" program to mitigate the Program: proposed to be included and Residential Housing Mitigation Program need for affordable housing created revised in the 2014-2022 to mitigate the need for affordable by new market-rate residential • 17 BMR rental units (Markham) Housing Element. housing created by new market-rate development. • 3 BMR ownership units(Las Palmas) residential development. The City contracts with West Valley This program applies to all new Community Services (WVCS) to residential development of one unit or administer the Below Market-IZate (BMR) greater. Mitigation includes either the Affordable Housing Program which payment of the "Housing Mitigation" fee includes placing eligible households in or the provision of a Below Market Rate the City's BMR units. (BMR) unit or units. Projects of seven or more for-sale units must provide on-site Between 2007 and 2013, $1,195,414 had BMR units. Projects of six units or fewer been collected through the Housing for-sale units can either build one BMR Mitigation Program(Office/Industrial and unit or pay the Housing Mitigation fee. Residential) and deposited to the City's Developers of market-rate rental units, Below Market-Rate (BMR) Affordable where the units cannot be sold Housing Fund (AHF). individually, must pay the Housing Mitigation fee to the Affordable Housing Fund (AHF). Program 6:Affordable Housin� Between 2007 and 2013, $1,195,414 had The City will continue to utilize New Program 7:Below Market-Rate Fund been collected through the Housing the Below Market-Rate (BMR) (BMR)Affordable Housing Fund(AHF) Provide financial assistance to Mitigation Program(Office/Industrial and Affordable Housing Fund The City's Below Market-Rate (BMR) affordable housing developments. Residential) and deposited to the City's (AHF) to support affordable Affordable Housing Fund (AHF) will Expend housing funds in the Below Market-Rate (BMR) Affordable housing projects,programs and continue to support affordable housing following manner: Housing Fund (AHF). These funds were services. This program is projects, programs and services, including used to support affordaUle housing proposed to be included and but not limited to: • Finance affordable housin ro'ects, ro rams and services such as: revised in the 2014-2022 Page 3 of 19 21 Summary of Accomplishments of 2007-2014 Housing Element Implementation Programs 2007-2014 Housing Element Goals, 2007-2014 Housing Element Program Proposed 2014-2022 Housing Proposed 2014-2022 Housing Element Policies and Programs Accomplishments Element Program Changes to Program Language Recommendation projects. Housing Element with a • Rehabilitation • Establish a down payment l. Project Sentinel—Landlord/Tenant revised expanded list of • Acquisition with or without assistance plan that may be used Mediation Services potential eligible uses of funds. rehabilitation in conjunction with the BMR 2. West Valley Community Services • New construction program or to make market rate (WVCS)—BMR Program • Preserving"at-risk" BMR units units more affordable. Administration • Rental operating subsidies • Establish a rental subsidy 3. 19935 Price Avenue—Acquisition of . Down payment assistance program to make market rate affordable housing residential rental • Land write-downs units more affordable. property. • Direct gap financing • Public service agencies However,the City did not establish a • Special needs housing downpayment assistance program or a rental subsidy program. The City will target a portion of the Below Market-Rate (BMR) Affordable Housing Fund (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). Page 4 of 19 22 Summary of Accomplishments of 2007-2014 Housing Element Implementation Programs Proposed 2014-2022 Housing 2007-2014 Housing Element Goals, 2007-2014 Housing Element Program Proposed 2014-2022 Housing Element �lement Program Policies and Programs Accomplishments Changes to Program Language Recommendation Policy 3:Rangc of Housi�Tg T�pes Program 7:Mortga�e Credit The County of Santa Clara continues to This program is proposed to be New Program 8: Referral to Housin� Certificate (MCC) Pro�ram operate this program. However, given the included in the 2014-2022 Resources Participate in the countywide MCC high home prices in Cupertino, the Housing Element as a new The City will continue to provide program to assist one to two potential of utilizing this program is program — Referral to Housing information on housing resources and households annually. limited. As of 2013, the maximum Resources. services offered by the County and other purchase price limits were $570,000 for outside agencies. These include, but are resale properties and $630,000 for new not limited to: units. • Mortgage Credit Certificate (MCC) • Section 8 Housing Choice Vouchers • Housing Trust of Santa Clara County (HTSCC) • Housing Authority of Santa Clara County(HASCC) • County of Santa Clara HOME Consortium Program 8: Move-In for Less This program offered by the Tri-County This program is proposed to be Program removed. Pro*�ram Apartment Association ��as discontinued removed from the 2014-2022 Program is offered by the Apartments in 2010. Housing Element. Association. Page 5 of 19 23 Summary of Accomplishments of 2007-2014 Housing Element Implementation Programs 2007-2014 Housing Elernent Goals, 2007-2014 Housing Element Program Proposed 2014-2022 Housing Proposed 2014-2022 Housing Element Element Program Policies and Programs Accomplishments Changes to Program Language Recommendation Program 9: Surplus Propertv for As part of the 2014-2022 Housing Element This program is proposed to be New Program 9: Surplus Properties for Housin� update and concurrent Land Use Element included and revised in the Housin� Explore opportunities on surplus update, the City has explored and 2015-2023 Housing Element. The City will explore opportunities on properties as follows: prioritized various vacant and surplus properties as follows: underutilized properties with potential • In conjunction with local public residential and mixed use development • Work with local public agencies, agencies, school districts and within the next eight years. These school districts and churches, to churches, develop a list of surplus properties are included in the sites identify surplus properties or property or underutilized inventory for the Housing Element. underutilized properties that have the property that have the potential potential for residential development. for residential development. • Encourage long-term land leases of • Encourage long-term land leases properties from churches, school of property from churches, school districts, and corporations for districts corporations for construction of affordable units. construction of affordable units. • Evaluate the feasibility of developing • Evaluate the feasibility of special housing for teachers or other developing special housing for employee groups on the surplus teachers or other employee properties. groups on the surplus properties. • Review housing programs in • Review housing programs in neighboring school districts that assist neighboring school districts that teachers for applicability in assist teachers for applicability in Cupertino. Cu ertino. Program 10:Jobs/Housin�Balance The City's General Plan and 2007-2014 This program is proposed to be Refer to following three New Pro rams: Pro ram Housing Element offer adequate capacity included and revised in the Require major new office/industrial to accommodate the City's RHNA for the 2014-2022 Housing Element as • New Program 1: Land Use Policv and development to build housing as part planning period. The City continues to key elements of three new Zoning Provisions of new development projects. implement its Housing Mitigation programs — Land Use Policy • New Pro�razn 5: Housin_g Mitigation Program to enhance the jobs/housing and Zoning Provisions, Plan — Office and Industrial balance in the community. Housing Mitigation Plan — Mitigation Office and Industrial • New Program 6: Housing Mitigation Page 6 of 19 24 Summary of Accomplishments of 2007-2014 Housing Element Implementation Programs Proposed 2014-2022 Housing 2007-2014 Housing Element Goals, 2007-2014 Housing Element Program Proposed 2014-2022 Housing Element Element Program Policies and Programs Accomplishments Recommendation Changes to Program Language Mitigation and Housing Plan—Residential Mitigation Mitigation Plan — Residential Miti ation. Policy 4:Housing Rehabilitation Pro�ram 11: Affordable Housing The City continues to provide This program is proposed to be Refer to New Pro�ram 8: Referral to Information and Sup�ort information, resources, and support to included in the 2014-2022 Housing Resources Provide information, resources and developers. Housing Element. support to developers who can roduce affordable housin . Policy 5:Development of Affordable Housing Program 12: Density Bonus Program As part of the 2015-2023 Housing Element This program is proposed to be New Program 10: Incentives for Allow for a density bonus and update, the City is also amending its included and revised in the Affordable Housing Development additional concessions for Zoning Code to revise the Density Bonus 2015-2023 Housing Element. The City will continue to offer a range of development of 6 or more units that Ordinance to be consistent with State law. Adoption of a new revised incentives to facilitate the development of provide affordable housing for Density Bonus Ordinance is affordable housing. These include: families and seniors. anticipated to be completed concurrent with the 2014-2022 • Financial assistance through the City's Housing Element. Below Market-IZate (BMR) Affordable Housing Fund (AHF) and Community Development Block Grant(CDBG) funds; • Density bonus incentives; • Flexible development standards; • Technical assistance; • Waiver of park dedication fees; • Parking ordinance waivers;and • Ex edited ermit rocessin . Page 7 of 19 25 Summary of Accomplishments of 2007-2014 Housing Element Implementation Programs 2007-2014 Housing Element Goals, 2007-2014 Housing Element Program Proposed 2014-2022 Housing Proposed 2014-2022 Housing Element Element Program Policies and Programs Accomplishments Changes to Program Language Recommendation Program 13: Regulatorv Incentives The City continues to waive park This prograin is proposed to Refer to New Program 10: Incentives for for Affordable Housin� dedication fees and provide parking be included in the 2014-2022 Affordable Housing Development Provide regulatory incentives for ordinance waivers for affordable Housing Element. affordable housing, such as waiving developments. 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 New Program 11: Extremelp Low Income Housin� development of housing affordable to included and revised in the Housing and Housing for Persons with Encourage the development of extremely low income households. 2014-2022 Housing Element. �ecial Needs adequate housing to meet the needs The proposed revision will The City will continue to encourage the of extremely low-income households include Housing for Persons development of adequate housing to meet by providing assistance and funding with Special Needs to be added the needs of extremely low-income for affordable housing developments. to this program. 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 BMR AHF and CDBG funds (refer to New Program 7). • Allow residential developments to exceed planned density maximums if they provide special needs housing and the increase in density will not overburden nei hborhood streets or Page 8 of 19 26 Summary of Accomplishments of 2007-2014 Housing Element Implementation Programs Proposed 2014-2022 Housing 2007-2014 Housing Element Goals, 2007-2014 Housing Element Program Proposed 2014-2022 Housing Element Element Program Policies and Programs Accomplishments Recommendation Changes to Program Language 11urt neighborhood character. • Grant reductions in off-street parking on a case-b -case basis. Program 15: Residential and Mixed As part of the 2015-2023 Housing Element This program is proposed to be Included as a policy statement. See new Use O�ortunities in or Near update and concurrent Land Use Element added as a policy statement to Policy A-3 in Attachment HC-2. Emplovment Centers update, the City has explored and Goal A: An Adequate Supply Encourage mixed use development prioritized various vacant and of Residential Units for All and the use of shared parking underutilized properties with potential Economic Segments for the facilities in or near employment residential and mixed use development 2014-2022 Housing Element to centers. Evaluate the possibility of within the next eight years. These encourage mixed use allowing residential development properties are included in the sites development. above existin arkin areas. inventor for the Housin Element. Program 16: Expedited Permit The City continues of offer expedited This program is proposed to be Refer to New Pro�ram 10: Incentives for Procedures permit processing for affordable housing included but revised in the Affordable Housin�Development. Expedite permit processing for projects meeting the State Density Bonus 2014-2022 Housing Element as housing developments that contain at requirements. a new program - Incentives for least 20 percent of units for lower- Affordable Housing income households, or 10 percent of Development. units for very low-income households, or 50 percent of units for senior citizens. Policy 6: Tax Increment Funds Program 17: Redevelopment The Redevelopment Agency was Program is proposed to be Program and policy removed. Housing Set Aside Fund dissolved in 2012, pursuant to AB1X26 removed from the 2014-2022 Develop policies and objectives for and AB1X27. Housing Element. the use of those Low and Moderate Income Housin Funds. Page 9 of 19 27 Summary of Accomplishments of 2007-2014 Housing Element Implementation Programs 2007-2014 Housing Element Goals, g g Proposed 2014-2022 Housing p g 2007-2014 Housin Element Pro ram Pro osed 2014-2022 Housin Element Policies and Programs Accomplishments Element Program Changes to Program Language Recommendation Policy 7:Housing Densities Program 18: Flexible Residential Accomplishments Policy 7 and this program are New Program 4: Flexible Develo�ment Standards The City continues to offer flexible proposed to be included in the Standards Allo�v flexible residential development standards. 2014-2022 Housing Element The City will continue to: development standards in planned under Goal A to facilitate a residential zoning districts, such as range of housing options in the • Offer flexible residential development smaller lot sizes, lot ti�idths, floor area community. standards in planned residential ratios and setbacks, particularly for zoning districts, such as smaller lot higher density and attached housing sizes, lot widths, floor area ratios and developments. 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. Program 19: Residential The City continues to provide this This program is proposed to be Refer to New Pro�ram 11: Extremel,��Low Development Exceedin�Maximums regulatory incentive to facilitate included and revised in the Income Housing and Housing for Allow residential developments to affordable housing for persons with 2014-2022 Housing Element as Persons with Special Needs. exceed planned density maximums if special needs. However, no development part of a new program — they provide special needs housing. utilized this incentive between 2007 and Housing for Extremely Low 2013. Income Households and Persons with S ecial Needs. Program 20: Monitor R-3 Accomplishments This program is proposed to be Refer to New Program 1: Land Use PolicX Development Standards The City continues to monitor its included in the 2014-2022 and Zoning Provisions. Monitor the R-3 development development standards. Future Housing Element as part of a standards on a regular basis to ensure residential development is likely to focus new program — Land Use that the requirements do not constrain in mixed use areas in the City. As part of Policy and Zoning Provisions. new housing production. the Land Use Element update process conducted concurrent with the Housing Element u date, the Cit reviewed and Page 10 of 19 28 Summary of Accomplishments of 2007-2014 Housing Element Implementation Programs Proposed 2014-2022 Housing 2007-2014 Housing Element Goals, 2007-2014 Housing Element Program Proposed 2014-2022 Housing Element �lement Program Policies and Programs Accomplishments Changes to Program Language Recommendation proposed modific�tions to development standards to facilitate multi-family and mixed use develo ment. Pro�ram 21: Clarif.�guage of The Zoning Ordinance was amended in This program was completed in Program removed. Planned Develo�ment(P) District 2010 to clarify that residential 2010 and is proposed to be Amend the zoning ordinance to development in the P (Res/R3) zones removed from the 2014-2022 clarify that residential development in require a planned development permit. Housing Element. P (Res/R3) aones will require a planned development permit and not a conditional usc permit. � . � • . � � � . Policy 8:Maintenance and Repair Pro�ram 22:Apartment Acquisition Accom�plishments Preserving and improving the 1Vew Program 12:Residential and Rehabilitation The City continues to assist non-profits quality of housing for lower Rehabilitation I'rovide financial assistance to eligible with the acquisition and rehabilitation of income households is The City will continue to: very low and low-income affordable housing units such as: important to the City. This homeowners to rehabilitate their program is proposed to be • Utilize its BMR AHF and CDBG funds housing units. 1. Maitri Transitional Housing included and revised in the to support residential rehabilitation Rehabilitation: CDBG funds were 2014-2022 Housing Element to efforts in the community. These used to rehabilitate this four-unit incorporate both rehabilitation include: transitional housing for victims of efforts for both single-family o Acquisition/rehabilitation of rental domestic violence. Project was and multi-family rehabilitation. housing completed in 2010. o Rehabilitation of owner-occupied 2. Senior Housing Solutions — 19935 housing Price Avenue: Acquisition and • Provide assistance for home safety rehabilitation of this property using repairs and mobility/accessibility the Below Market-IZate (BMR) improvements to income-qualified Affordable Housing Fund (AHF) and owner-occupants using CDBG funds. Community Development Block The focus of this program is on the Grant (CDBG) funds and was correction of safety hazards. com leted in 2011. This home is now • Ex lore o ortunities for ac uisition Page 11 of 19 29 Summary of Accomplishments of 2007-2014 Housing Element Implementation Programs 2007-2014 Housing Element Goals, g g Proposed 2014-2022 Housing p g 2007-2014 Housin Element Pro ram Pro osed 2014-2022 Housin Element Element Program Policies and Programs Accomplishments Changes to Program Language Recommendation occupied by five low income seniors. and/or rehabilitation of rental housing for lower income households. Policy 9:Conservatio�2 of Housing Stock Pro�ram 23: Preservation of"At Risk The City did not experience a loss of any The City works to preserve its New Program 13: Preservation of At-Risk Units" "at risk" affordable units converting to affordaUle housing stock. This Housin Units Monitor owners of at-risk projects on market-rate during the planning period. program is proposed to be To preserve the City's affordable housing an ongoing basis to determine their included and revised in the inventory, the City will: interest in selling, prepaying, 2014-2022 Housing Element. terminating or continuing • Annually monitor the status of its participation in a subsidy program, affordable housing inventory and Work with owners, tenants, and contact property owners for the intent nonprofit organizations to assist in to remain or opt out of their the nonprofit acquisition of at-risk affordable programs. projects to ensure long-term • In the event a project becomes at risk affordability of developments where of converting to market-rate housing, appropriate. work with property owners or other interested non-profit housing roviders to reserve the units. Program 24: Condominium The City continues to implement the This program is proposed to be New Program 14: Condominium Conversions Condominium Conversion Ordinance. included and revised in the Conversion Continue to implement to 2014-2022 Housing Element. The City's existing Condominium Condominium Conversion Conversion Ordinance regulates the Ordinance. 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 ast six months. The Ci will continue to Page 12 of 19 30 Summary of Accomplishments of 2007-2014 Housing Element Implementation Programs Proposed 2014-2022 Housing 2007-2014 Housing Element Goals, 2007-2014 Housing Element Program Proposed 2014-2022 Housing Element Element Program Policies and Programs Accomplishments Changes to Program Language Recommendation monitor the effectiveness of this ordinance in providing opportunities for homeownership while preserving a balanced housing stock with rental housin . Program 25: Rental Housin� The City has not adopted a Rental This program is proposed to be New Pro�ram 27: Rental Housing Preservation Pro ram Housing Preservation Program. discussed further and will be Preservation Program (PLACEHOLDER) Develop and adopt a program that included as a placeholder in the This program will be discussed further in would grant approval only if at least 2015-2023 Housing Element. light of recent court cases such as Palmer two of the following vs. City of Los Angeles, Sterling Park vs. three circumstances exist: City of Palo Alto. Also in response to recent court cases various cities are • The project will comply with the addressing this issue with updating City's BMR Program based on the mitigation fees for rental units. Due to the actual number of new units uncertainty of the outcome of several constructed, not the net number court cases that are pending this program of units; and/or will be discussed further. • 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 Pro ram. Program 26: Conservation and The City contracts �vith Rebuilding The City recognizes the Refer to New Program 12: Residential Maintenance of Affordable HousinQ Together Silicon Valley (RTSV) to provide importance of maintaining and Rehabilitation. Develop a program to encourage the home safety repairs and mobility/ improving its existing housing maintenance and rehabilitation of accessibility improvements to income- stock. This program is residential structures to preserve the qualified owner-occupants using CDBG proposed to be included in the older, more affordable housing stock. funds. The focus of this program is on the 2014-2022 Housing Element as correction of safe hazards. Between a new ro ram - Residential Page 13 of 19 31 Summary of Accomplishments of 2007-2014 Housing Element Implementation Programs 2007-2014 Housing Element Goals, 2007-2014 Housing Element Program Proposed 2014-2022 Housing Proposed 2014-2022 Housing Element Policies and Programs Accomplishments Element Program Changes to Program Language Recommendation 2007 and 2013, 31 households were Rehabilitation. assisted throu h this ro ram. Program 27: Neighborhood and The Environmental Services division This is an ongoing program New Pro�ram 15: Neighborhood and Community Clean Up Campaigns organizes an annual city-wide garage sale and is proposed to be included Community Clean Up Campaigns Continue to encourage and sponsor to encourage reuse of items which in the 2014-2022 Housing The City will continue to encourage and neighborhood and community clean ordinarily might end up in the landfill. Element. sponsor neighborhood and community up campaigns for both public and Also, the division organizes community clean up campaigns for both public and rivate ro erties. creek clean-u cam ai ns. rivate ro erties. Policy 10: Energy Conservation Program 28: Energ�Conservation The City continues to enforce Title 24. This is a function of the New Program 16: Enforcement of Title 24 Opportunities Building Division and is The City will continue to enforce Title 24 Continue to enforce Title 24 proposed to be included as a requirements for energy conservation. requirements for energy conservation separate housing program in and evaluate utilizing suggestions as the 2014-2022 Housing identified in the Environmental Element. Resources/Sustainabilit element. Program 29: Fee Waivers or The City adopted a Green Building This program is proposed to be New Program 17: Green Building Reduction for Energy Conservation Ordinance in 2013 to facilitate energy included and revised in the Ordinance Evaluate and implement the potential conservation efforts. Residential and 2014-2022 Housing Element. The City will continue to implement the to provide incentives, such as waiving nonresidential new construction, Green Building Ordinance (adopted in or reducing fees, for energy addition, and renovation are required to 2013) that applies to new residential and conservation improvements to comply with the Green Building nonresidential development, additions, residential units(existing or new). Ordinance. renovations, and tenant improvements. To further the objectives of the City's Green Building Ordinance, the City will evaluate the potential to provide incentives, such as waiving or reducing fees, for energy conservation improvements at residential projects (existin or new) with fewer than ten Page 14 of 19 32 Summary of Accomplishments of 2007-2014 Housing Element Implementation Programs Proposed 2014-2022 Housing 2007-2014 Housing Element Goals, 2007-2014 Housing Element Program Proposed 2014-2022 Housing Element Element Program Policies and Programs Accomplishments Recommendation Changes to Program Language units to exceed the minimum requirements of the California Green Buildin Code. Program 30: Energ.v Efficiencv Energy audits were offered through an The ARRA program expired in Program removed. Audits AIZIZA grant by the Public Information 2012. This program is proposed Offer free energy efficiency audits for Office through a contract with Actera. to be removed from the 2014- residential units under a contract with 2022 Housing Element. Acterra. Program 31: Energ,y Conservation in The City also adopted a Green Building This program is proposed to be Refer to New Pro�ram 17: Green Residential Develo�ment Ordinance in 2012 to encourage energy included in the 2014-2022 Buildin�Ordinance. Continue to encourage energy conservation efforts. Housing Element. efficient residential development and provide technical assistance to developers who are interested in incorporating energy efficient design elements into their ro ram. � . � � . • • . � � . Polic�11: Special Needs Households Pro,�ram 32: Emergenc,�Shelters The City revised the Zoning Ordinance in This program is proposed to be New Program 18:Emergencv Shelters Revise the Zoning Ordinance to allow 2010 to permit emergency shelters in the included in the 2015-2023 The City amended its Zoning Ordinance permanent emergency shelter "BQ" Quasi-Public zoning districts as a Housing Element and revised in 2010 to provide for the siting of facilities in "BQ" Quasi-Public zoning permitted use. However, the to comply with SB 2 emergency shelters in the "BQ" Quasi- districts as a permitted use. development standards established in the requirements. Public zoning districts as a permitted use. Zoning Ordinance may not comply with However, the development standards SB 2 requirements. established in the Zoning Ordinance do not meet State law requirements for permanent year-round shelters. Specifically, the City requires the shelter to be located in an existing church structure — a location requirement not ermitted under State law. The Cit will Page 15 of 19 33 Summary of Accomplishments of 2007-2014 Housing Element Implementation Programs 2007-2014 Housing Element Goals, 2007-2014 Housing Element Program Proposed 2014-2022 Housing Proposed 2014-2022 Housing Element Policies and Programs AccomplishmenEs Element Program Changes to Program Language Recommendation re��ise the Zoning Ordinance to comply with State law. Pro�ram 33: Rotating Homeless West Valley Community Services (WVCS) The City recognizes the critical New Program 19: Rotating Homeless Shelter successfully managed the Rotating Shelter need to provide homeless Shelter Continue to support the rotating Program for 18 years. The Rotating prevention and emergency The City will continue to support the emergency shelter operated by West Shelter Program is now operated through shelter services for the operation of a Rotating Homeless Shelter Valley Community Services. Faith in Action Silicon Valley. homeless in the region. This program. program is proposed to be included in the 2014-2022 Housin Element. Program 34:Transitional and The City revised the Zoning Ordinance in The Zoning Ordinance Program to revise Zoning Ordinance Su�portive Housin� 2010 to provide transition and supportive amendment program was removed. Amend its zoning ordinance to housing as a residential use to be completed in 2010. This comply with the requirements of SB2. permitted in similar manners as similar program is proposed to be Refer to New Program 10: Incentives for Transitional and supportive housing uses in the same zones. removed from the 2014-2022 Affordable Housing Development and will be treated as residential uses and Housing Element. New Pro�ram 11: Extremelv Low Income be subject to the same development In 2008, the City contributed $800,000 to Housin� and Housing for Persons with standards and restrictions that apply Maitri, a non-profit agency providing Special Needs for City efforts in to similar housing types in the same transitional housing to victims of facilitating transitional and su�ortive zone. domestic violence, for the purchase of a housin�. four-plex in Cupertino. The project was com leted in 2010. Program 35: Catholic Social Services Catholic Charities continues to provide The City will continue to New Program 20: Supportive Services for (Single Parents) the shared housing services through the provide a range of supportive Lower Income Households and Persons Provide help, Catholic Social Services, Urban County CDBG program. services to its residents, with Special Needs to place single parents in shared especially those with special The City will continue to utilize its BMR housing situations through the Santa needs, in order to foster a AHF, CDBG funds, and General Fund Clara County Urban County suitable living environment. A Human Service Grants funds to provide programs. new program is proposed to be for a range of supportive services for included and revised in the lower income households and ersons Page 16 of 19 34 Summary of Accomplishments of 2007-2014 Housing Element Implementation Programs Proposed 2014-2022 Housing 2007-2014 Housing Elernent Goals, 2007-2014 Housing Element Program Proposed 2014-2022 Housing Element Element Program Policies and Programs Accomplishments Recommendation Changes to Program Language 2014-2022 Housing Element to with special needs. reflect the range oE services that ma be su orted b the Cit . Program 36: Flexible Parkin� The City continues to offer reductions in This program is proposed to be Refer to New Pro�ram 10: Incentives for Standards parking requirements on a case-by-case included in the 2014-2022 Affordable Housing Development. Consider granting reductions in off- basis for senior housing. However, no Housing Element. street parking on a case-by-case basis new senior housing project was for senior housing. developed between 2007 and 2013. � . � � � • � . � Policy 12: Housing Discrimination Program 37: Santa Clara Coun . Fair The City continues to participate in the This program is proposed to be New Program 21: Fair Housing Services Housin�Consortium Fair Housing Consortium. Fair housing included and revised in the The City will continue to: Distribute fair housing materials at all materials distributed by various 2014-2022 Housing Element. • Provide fair housing services, which public facilities throughout the City organizations are available at public include outreach, education, and also has a booth at public events counters. counseling, and investigation of fair to distribute materials. 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 ublic counters and ublic events?. Program 38: Fair Housin�0utreach The City continues to contract with Eden This program is proposed to be Refer to New Program 21. Continue to contract with ECHO Council for Hope and Opportunity included in the 2014-2022 Housing to provide fair housing (ECHO) to provide fair housing services, Housing Element as a new outreach services. includin outreach and education, ro ram - Fair Housin Page 17 of 19 35 Summary of Accomplishments of 2007-2014 Housing Element Implementation Programs 2007-2014 Housing Element Goals, 2007-2014 Housing Element Program Proposed 2014-2022 Housing Proposed 2014-2022 Housing Element Policies and Programs Accomplishments Element Program Changes to Program Language Recommendation counseling, and investigation of fair Services. housing complaints. Also Project Sentinel provides tenant/landlord mediation services under contract for the Cit . Pro$ram 39: Reasonable The City adopted the Reasonable This program was completed in Program removed. Accommodation Ordinance Accommodation Ordinance in 2010. 2010 and is proposed to be Adopt a written reasonable removed from the 2015-2023 accommodation ordinance to provide Housing Element. persons with disabilities exceptions in �onin� and land-use for housing. � , r � . � � � � � Policy 13: Coorcti��rztio�T with Local School Dist��icts Program 40: Coordination with Local City staff continues to meet with the The City recognizes the New Pro�ram 22: Coordination with School Districts school districts to discuss facility needs. importance of addressing Outside A�encies and Or�anizations Form a new committee of key staff However, no formal committee was development impacts on the The City recognizes the importance of from the City and the school districts established. school districts. This program partnering with outside agencies and to meet on a bi-monthly basis or as is proposed to be included and organizations in addressing local and needed to review City planning revised in the 2014-2022 regional housing issues. These may initiatives, development proposals Housing Element. In addition, include, but are not limited to the and School capital facilities and the proposed new revised following: operating plans. program will reflect coordination with other • School districts agencies, organizations, and • Housing providers neighboring jurisdictions to • Neighboring jurisdictions address regional housing • Association of Bay Area Governments issues. (ABAG) • Housing Trust of Santa Clara County (HTSCC) • Santa Clara County Fair Housing Consortium • Santa Clara Count HOME Page 18 of 19 36 Summary of Accomplishments of 2007-2014 Housing Element Implementation Programs Proposed 2014-2022 Housing 2007-2014 Housing Element Goals, 2007-2014 Housing Elernent Program Proposed 2014-2022 Housing Element Element Program Policies and Programs Accomplishments Recommendation Changes to Program Language Consortium • Santa Clara County Continuum of Care(COC) • Housing Authority of Santa Clara County(HASCC) Specifically, the City will meet with these agencies/organizations periodically to discuss the changing needs, development trends, alternative approaches, and artnerin o ortunities. Page 19 of 19 37 ATTACHMENT B Summary of Proposed 2014-2022 Housing Element Goals, Policies and Programs Goal A: An Adequate Supply of Residential Units for All Economic Segments ■ Policy 1:Provision of Adequate Capacity for New Construction Need Designate sufficient land at appropriate densities to accommodate Cupertino's Regional Housing Needs Allocation (RHNA) of 1,064 units for 2014-2022 RHNA planning period. ■ Polie�2:Housing Densities Provide a full range of ownership and rental housing unit densities, including apartments and other high-density housing. ■ New Poliey 3:Mixed Use Development Encourage mixed use development near transportation facilities and employment centers. ■ Goal A Programs: ■ Program 1: Land Use Policy and Zoning Provisions ■ Program 2: Second Dwelling Units ■ Program 3: Encourage Lot Consolidation ■ Program 4: Flexible Residential Standards Goal B: Housing is Affordable for a Diversity of Cupertino Households ■ Policy 4:Housing Mitigation Ensure that all new developments, including market-rate residential developments, help mitigate its impact on affordable housing needs. ■ Policy 5:Range of Housing Types Encourage the development of diverse housing stock 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 households and also households with wage earners who provide essential public services (e.g., school district employees, municipal and public safety employees, etc.) ■ PoHcy 6: Development of Affordable Housing and Housing for Persons with Special Needs Maintain and/or adopt appropriate land use regulations and other development tools to encourage the development of affordable housing. Make every reasonable effort to disperse units throughout the community but not at the expense of undermining the fundamental goal of providing affordable units. 38 ■ Goal B Programs: ■ Program 5: Office and Industrial Housing Mitigation Program ■ Program 6: Residential Housing Mitigation Program ■ Program 7: Below Market-Rate (BMR) Affordable Housing Fund (AHF) ■ Program 8: Referral to Housing Resources ■ Program 9: Surplus Properties for Housing ■ Program 10: Incentives for Affordable Housing Development ■ Program 11: Extremely Low-Income Housing and Housing for Persons with Special Needs ■ Program 23: Nexus Study Update ■ Program 24: Community Development Block Grant (CDBG) Program ■ Program 26: HOME Investment Partnerships (HOME) Program Goal C: Enhanced Residential Neighborhoods ■ Polic� 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 8:Maintenance and Repair Assist lower income homeowners and rental property owners in maintaining and repairing their housing units. ■ Policy 9: Conservcztion of Housing Stock Conserve the existing stock of owner and rental housing units, which provide affordable housing opportunities for lower and moderate income households. ■ Goal C Programs: ■ Program 12: Residential Rehabilitation ■ Program 13: Preservation of At-Risk Housing Units ■ Program 14: Condominium Conversion ■ Program 27: Rental Housing Preservation Program ■ Program 15: Neighborhood and Community Clean Up Campaigns New Goal (D): Energy Conservation ■ Policy 10: Energy Conservation Encourage energy conservation in all existing and new residential and mixed use development. ■ Goal D Programs: ■ Program 16: Enforcement of Title 24 I'age 2 of 3 39 ■ Program 17: Green Building Ordinance Goal E: Services for Extremely Low Income Households and Special Needs Households ■ Policy 11: Special Needs Households Support organizations that provide services to special need households in the City, such as the homeless, elderly, disabled and single parent households. ■ Goal E Programs: ■ Program 18: Emergency Shelters ■ Program 19: Rotating Homeless Shelter ■ Program 20: Supportive Services for Lower Income Households and Persons with Special Needs ■ Program 25: General Fund Human Service Grants (HSG) Program Goal F: Equal Access to Housing Opportunities ■ Policy 12:Housing Discrimination The City will work to eliminate on a citywide basis all unlawful discrimination in housing with respect to age, race, sex, sexual orientation, marital or familial status, ethnic background, medical condition, or other arbitrary factors, so that all persons can obtain decent housing. ■ Goal F Programs: ■ Program 21: Fair Housing Services Goal G: Coordination with Regional Organizations and Local School Districts ■ Policy 13: Coordination with Local School Districts The Cupertino cammunity places a high value on the excellent quality of education provided by the two public school districts which serve the city. In order to ensure the long-term sustainability of the schools in tandem with the preservation and development of vibrant residential areas, the City will institute a new policy of coordinating closely with the Cupertino Union School District (CUSD) and Fremont Union High School District (FUHSD). ■ Policy 14: Coordiriation with Regional Efforts to Address Housing-Related Issues Coordinate efforts with regional organizations, including ABAG, as well as neighboring jurisdictions, to address housing issues. ■ Goal G Programs: ■ Program 22: Coordination��ith Outside Agencies and Organizations Page 3 of 3 40 ATTACHMENT C Housing Element Goal A:Supply of Units Goal B:Affordable Housing oal C:Enhanced Neighborhood Goal D:Energy oal E:Special Need ,oal P:Pair Housin Goal G:Coordination Implementation Programs Policy 1 Policy 2 Policy 3 Policy 4 Policy 5 Policy 6 Policy 7 Policy 8 Policy 9 Policy 10 Policy 11 Policy 12 Policy 13 Policy 14 Program 1: Land Use Policy and Zoning Provisions The City will wntinue to: •Pruvide adequate capacity through its Land Use Element and Zoning Ordinance to accommodate its RHNA of 1,064 units,while maintaining a balanced land use plan that offecs opportunitics for emplo}��nent growth,commercial/retail activities,services,and J J � � � �unenities. •Monitor its development standards to ensure they are adequate and appropriate to facilitate a range of housing in the wmmunity •Monitor its sites inventory and make it availablc on City wcbsite. Program 2:Second D�velling Units The City will continue to implemen[the Second Dwelling Unit � � � � Ordinancc and encouragc thc production of sccond units. Program 3:Encourage Lot Consolidxtion The City will continue to: •Encourage lot consolidation when contiguous smaller, underutilir.ed parcels are to be redeveloped. •Encourage master plans for such sites ti�ith coordinated access and circulation. � J J J •Provide technical assistance to propert}�owners of adjacent parcels to facilitate coordinated redevelopment tvhere appropriate. •Giuourage intra-and inter-agency cooperation in wurking with applicants at no cost prior to application submittal for assistance with prcliminary plan revicw. Progrxm 4:Tlexible Residential Standards Thc City will conlinue to: • Offcr flcxiblc residential devclopment standards in planned residential zoning districts,such as smallcr lot sizes,lot widths,floor J J J � area ratios and setbacks,particularly for higher density and attached ho�sing developments. •Consider gra�iting reductions in uff-street parking on a case-by-case basis for senior housitig. Program S:Office and Industrial IIousing Mitigation Program The City will continue to implement the Office and Industrial Housing Mitigation Program.This program requires that devclopen of office,commercial,and industrial space pay a fee,which will then be used to support aEfordable housing for fzunilies who work in � � J J Cupertino but live elsewhere. These fees are collected and deposited in the City's Below Market-Rate(BMR)Affordable Housing Fund (AHF). 41 Proposed 2014-2022 Housing Element Programs and Relationship to Goais and Policies Housing Element Goal A:Supply of Units Goal B:Affordable Housing oal C:Enhanced Neighborhood Goal D:Gnergy oal E:Special Need oal F:Fair Housin Goal G:Coordination Implementation Programs Policy 1 Policy 2 Policy 3 Policy 4 Policy 5 Policy 6 Policy 7 Policy B Policy 9 Policy 10 Policy 11 Policy 12 Policy 13 Policy 14 Program 6:Residential Housing Mitigation Program The City will continue to implement the Residential Housing Mitigation Program to miti�atc thc nccd Eor affordablc housing created by new market-rate residential developmenL This program applies to all new residential de��elopment oY one unit or greater. Mitigation includes either the payment of the"Huusing Mitigation" fee or the provision of a Below Market Rate(BMR)unit or units. � � '� � Projects of seven or more for-sale uni[s must provide on-site BMR units.Projects of six units or fewer for-sale units can either build one BMR unit or pay the Housing Mi[igation fee. Developers of market- rate rental units,where the units cannot be sold individua]]y,must pay the Housing Mitigation fee to the Affordable Housing Fund (AHF). Necv Program 7:Below hlarket-Rate(BMR)Affordable Housing Fund IAHF) The City's Below Market-Rate(BMR)Affordable Housing Fund (AHF)will continue[o support affordable housing projects,programs and scrviccs,including but not limited to: •Rehabilitation •Acquisition with or without rehabilitation •New wnstruction •Preservin�"at-risk`Bb1R units •Rental operating subsidics � � � •Down payment assistance •Land ti�rite-downs •Direct gap financing •Public service agencies •Special needs housing Thc City will targct a portion of the Bclow Market-Kate([3MK) AffordaUle Housing Fund(AHF)to benefit extremely�ow-income households and persons with special needs(such as the elderly, victims of domestic violence,and the disabled,including persons with developmental disabilities). Program 8:Referral to Housing 2esources The City will continue tu provide information on housing resources and services offered by the Cow�ty and other outside agencies. These include,but arc not limited to: •Mortgagc Crcdit Ccrtificate(MCC) J � J •Section 8 Housing Choice Vouchers •Housing Trust of Santa Clara County(HTSCC) •Housing Authority of Santa Clara County(HASCC) •Countv of Santa Clara HOME Consortium Page 24af 7 1 Proposed 2014-2022 Housing Element Programs and Relationship to Goals and Policies Elousing Glement Goal A:Supply of Units Goal B:Affordable Housing oal C:Enhanced Neighborhood Goal D:8nergy oal E:Special Need oal P:Pair}Iousin Goal G:Coordination [mplementation Programs Policy 1 Policy 2 Policy 3 Policy 4 Policy S Policy 6 PolicY� Policy 8 Policy 9 Policy 10 Policy Il Policy 12 Policy 13 Policy 14 Program 9:Surplus Properties for Housing The City will explore opportunities on surplus properties as follows: •Work with local public agencies,school districts and churches,to idcntify surplus properties or underutilized propertics that have thc potcntial for residential devclopment. � •Encourage long-term land leases of properties Erom churches, school districts,and wrporations for construction of affordable units. •Evaluate the feasibility of developing special housing for teachers or other employee groups on the surplus properties. •Itevieiv housing programs in neighboring school districts that assist teachers for applicability in Cupertino. Ptogxam 10:Incentives foc Affordable Housing Development The City will continue to offer a range of incentives to facilitate the development oE affordable housing. These include: •Financial assistance through thc City's Bclow Market-Ratc(BMK) Affordable Housing Fund(AHF)and Community Development Block Grant(CDBG)Program funds; J J •Density Uonus incentives; •Flexible development standards; •Technical assistancc; •Waiver of park dedication fees; •Parking ordinance waivers;and •Expedited permit processing. Program 11:Extremcly Low-Incomc Housing and Housing for Persons with Special Needs The City will continue to encourage fl1e development of adequate housing to meet the needs of extremely lo��-income households and persons with special needs(such as the elderly,victims of domestic violencc,and thc disabled,including persons with devclopmental disabilities). Specifically,the City will consider the following incentives: J J J •Providc financing assistance using thc BMR AHF and CDBG funds (rcfcr ro New Program 7). •Allow residential developments to exceed planned densit�� maximums if thcy provide special needs housing and fl1e increase in densitv will not overburden neighborhood streets or hurt neighborhood character. •Grant reductions in off-strect parking on a case-by-case basis. Page 34Qf 7 ;i Proposed 2014-2022 Housing Element Programs and Relationship to Goals and Policies Housing Llement Goal A:Supply of Units Goal B:Affordable Housing oal C:Enhanced Neighborhood Goal D:Enezgy oal E:Special Need oal F:Fair Housin Goal G:Coordination Implementation Programs Policv 1 Policy 2 Policy 3 Policy 4 Policy S Policy 6 Policy 7 Policy 8 Policy 9 Policy 10 Policy 11 Policy 12 Policy 13 Policy 14 Program 12:Residential Rehabilitation The City will continue to: •Utilize its BMR AHF and CDBG funds to support residential rehabilitation efforts in the community. These include: o Acquisition/rchabilitation of rental housing o Rehabilitation of owncr-occupicd housing J J •Provide assistance for home safety repairs and moUilitp/accessiUility improvements to income-qualified owner-occupants using CDBG funds. 7he focus of this program is on the correction of safety ha-r,ards. •Explorc opportunities for acquisition and/or rchabiliWtion of renta] housing Eor lower income households. Program 13:Preservation of At-Risk Housing Units To preserve the City's affordable housiny inventory,the City will: •Annually monitor thc status of its affordablc housing invcntory and � con[act property owners for the intent to remain or opt out of their affordable programs. •In the event a project becomes at risk of converting to market-rate housing,work with propertV owners or other interested non-profit housing providers to prescrvc the units. Program 14:Condominium Conversion The City's existing Condominium Convcrsion 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 � J 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 homeo�vnership while preserving a Ualanced housing stock with rental housing. Program 15:Neighborhood and Community Clexn Up Campaigns The City will continue to encourage and sponsor neighborhood and � community clean up campaigns for both public and private propertics. Program 16:Enforcement of Title 24 The City will continue to enforce Title 24 requirements for energy � wnscrvation. Poge 4of 7 4 Proposed 2014-2022 Housing Element Programs and Relationship to Goals and Policies Housing Element Goal A:Supply of Units Goal B:Affordable Housing oal C Enhanced Neighborhood Goal D:Energy oal E:Special Need oal G:Pair Housin Goal G:Coordination Implementation Programs Policy 1 Policy 2 Policy 3 Policy 4 Policy 5 Policy 6 Policy 7 Polity 8 Policy 9 Policy 10 Policy 11 Policy 12 Policy 13 Policy 14 Program 17:Green Building Ordinance The City will continue to implement the Green Building Ordinance � (adopted in 2013)that applics to new residcntial and nonresidential development,additions,renovations,and tenant improvements. Program 18:Emergency Shelters The City amended its Zoning Ordinance in 2010 to provide far the siting oE emergency shelters in the"BQ"Quasi-PuUlic zoning districts as a permitted use. However,the development standards established in the Zoning Ordinance do not meet State law requirements fur � permanent year-round shelters. Specifically,the City requires the shcltcr to bc locatcd in an existing church structurc—a bcation requirement not permit[ed under State law. The City will revise the Zoning Ordinance within one year of the Housing Element adoption to comply��ith State law. Program 19:Ro[ating Homeless Shelter The City will continue to support the operation oE the rotating � emergency shelter prugram. Program 20:Supportive Services for[.ower Income Households and Pcrsons with Special Necds The City will continue to utilize its Below Market-Rate(BMR) Affurdable Huusing Fund(AHF),General Fw�d Human Service � Grants(HSC)Program and CDBG Funds,to provide for a range of supportivc scrvices Eor lowcr incomc houscholds and persons with special needs. Progr.m 21:Fair Housing Services The City will continue to: •Provide Eair housing services,which include outreach,education, co�mseling,and investiga[ion of fair housing complaints. •Retain a fair housing service provider to provide direct services for � residents,]andlords,and other housing professionals. •Coordinate with efforts of the Santa Clar1 Cowlty Fair Housing Consortium to affirmativcly furthcr fair housing. •Distributc fair housing matcrials produccd by��arious organizations at public counters and puUlic events. Page 54Qf 7 J Proposed 2014-2022 Housing Element Programs and Relationship to Goals and Policies Ilousing Glement Goal A:Supply of Units Goal B:Affordablc Housing oal C:Enhanced Neighborhood Goal D:Gnergy oal E:Special Need oal F:Fair Housin Goal G:Coordination Implementation Programs Policy 1 Policy 2 Policv 3 Policy 4 Policy S Policy 6 Policy 7 Policy S Policy 9 Policy 10 Policy 11 Policy 12 Policy 13 Policy 14 Program 22:Coordination with Outside Agencies and Organizations Thc City recognizes thc importance of partncring with outsidc agencies and organizations in addressing local and regional housing issues. These may inciude,but are not limited to the following: •School districts •Housing devclopers •PuUlic service agencies •Associatiun of Bav Area Governments(ABAG) � � •Housing Trust of Santa Clara County(HTSCC) •Santa Clara County Fair Housinp Consortium •Santa Clara County HOME Consortium •Santa Clara County Continuum of Carc(COC) •Housing Authority of the County of Santa Clara Cow1ty(I IACSCC) Specifically,the City will meet with these agencies/organirations periodically to discuss the changin�nceds,development trends, altcrnativc approaches,and partnering opportunitics. Program 23:Nexus Study Update The City will update its Nexus Study in relationship to iks OfEice, Industrial and Residential Mitigation Program with every Housing J Element updatc Program 24:Community Developmen[Block Grant(CDBG) Program The City will continue to utilize Community Development Block � � Grant(CDBG)entitlemcnt funds to support cligible capitnl housing projects and publi servcice housing activities. Program 25:General Fund Human Service Grants(HSG)Program The City will continue to utilize General Fund Human Service Grants � (HSG)funds to support public scrvcicc agencics,affordablc housing programs and scrviccs. Program 26:HOME Investment Partne:ships(HOME)Program The City will propose to join the CountV of Santa Clara HOME � Cunsortium. The City wuuld be eligible tu apply for HOME funds through[he Countv of Santa Clara for eligible affordable housing projects and programs. Page�Qf 7 b Proposed 2014-2022 Housing Element Programs and Relationship to Goals and Policies Ilousing Element Goal A:Supply of Units Goal B:Affordable Housing oal G Enhanced Neighborhood Goal D:Energy oal E:Special Need ,oal F:Fair Housin Goal G:Coordination Implcmentafion Programs Polic}'1 Policy 2 Policy 3 Policy 4 Policy S Policv 6 Policv 7 Policy S Policy 9 Policy 10 Policy 11 Policy 12 Policy 13 Policv 14 Program 27: Rental Housing Preservation Program (PLAC�HOLDER) This program�vill be discussed further in light of rcttent court cases such as Palmer vs.City of Los Angeles,Sterling Park vs.City ot Palo Alto.Also in � response to reccnt cottrt cases various cities are addressing this issue with updating mitigation fces for rental units. Duc to the unccrtainty of the outcome of several court cases Ihat are pending this program will be discussed furthcr. Page�af 7 7 ATTACHMENT D IProposed Revisions to 2007-2014 Housing Element Goals and Policies Goal A: An Adequate Su�ply of Residential Units for All Economic Se�ments � Policy 1: Provision o Ac�cqi�ate Ca�acit�for New Construction Need Designate sufficient �land at appropriate densities to . �'�^}-.,;" -„,."} accommodate ^R��#��e-c}�Cupertino's Regional Housing Needs Allocation (RHNA) of 1,�A064 units for 209�14-20�22 RHNA plannin period. Policy�2:Housing Densities Provide a full range of ownership and rental housing unit densities, including apartments and other high-density housing. New Poliei�3:Mixed Use Development Encourage mixed use development near trans�ortation facilities and em�loyment centers. Goal B: Housing is Affordable for a Diversi . of Cu�ertino Households Policy�4:Housing Mitigation� Ensure that�r�.,,, u,,,,�;,,�r��r;�;,�.,�;�„ .,i-,., ;��,.,�.�,a � �+,,,a.,r ,.,,a �,., ��,,,r;+.,+�,�+ a^^�^^`}r^*^�' +'�^}all new developments, including market-rate residential developments, hel�s miti�ate its impacts on�-r^��^ , ^^�a F^r affordable housing needs. Policy��i:Range of Housing Types Encourage the development of diverse housing stock that provides a range of housing types I (including smaller, moderate cost housing) and affordab i�_;��, levels. Emphasize the provision of housing for lower and moderate income households and also households with wage earners � who provide t��sri�_��al_��ti;:�:;. services (e.g., school district employees, municipal and public safety employees, etc.) n^�;,.,,n. u,,,.�;,.,, n„t,,,t,:�:f„�;,,,., , • l,f;+ �.,,a F.,,- ,-, ,�F;� ,a,,.,,.1.,,�,,,-� ; ,�,�1,,,.:.,�. �FF�„-,a�1-.1., , ,,;+�, _ � , . Policy 3¢:Develo�ment of Afforc�able Housirig nfui Housin�for Persofis zuitli S�eci�il NeecJs Maintain and/or adopt appropriate land use regulations and other development tools to encourage the development of affordable housing. Make every reasonable effort to disperse units throughout the community but not at the expense of undermining the fundamental goal of providing affordable units. 48 Goal C: Enhanced Residential Nei�hborhoods Policy 47:Housing Rehabilitation Pursue and/or provide funding for the ^^^�}r��^��^^ ^racc�uisition/-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 8:Maintennnce ancl Repc�ir IAssist��r�� ^T�� ^� �^�•,_;n�^^��lc��ti�er income homeo�vners and rental property owners in maintaining and repairing their housing units. Policy 9:Conservation of Hoi�sing Stock Conserve the existing stock of owner and rental housing units, which provide affordable housing opportunities for lower and moderate income households. INew Goal D: Energ_ Conservation Policy 10:Energy Coriservation IEncourage energy conservation in all existing and new residential and mixed use development. Goal �E: Services for Extremely Lo�v Income Households and S�ecial Needs Households Policy 11:Special Neec�s Houseliolc�s Support organizations that provide services to special need households in the City, such as the homeless, elderly, disabled and single parent households. IGoal �F: Equal Access to Housin� O�portunities Policy 12:Housing Discrimination The City will work to eliminate on a citywide basis all unlawful discrimination in housing with respect to age, race, sex, sexual orientation, marital or familial status, ethnic background, medical condition, or other arbitrary factors, so that all persons can obtain decent housing. Page 2 of 3 49 Goal�G• Coordination with Re�ional Organizations and Neighboring Jurisdictions Policy 13:Coordination with Local School Districts The Cupertino community places a high value on the excellent quality of education provided by the two public school districts which serve the city. In order to ensure the long-term sustainability of the schools in tandem with the preservation and development of vibrant residential areas, the City will institute a new policy of coordinating closely with the Cupertino Union School District (CUSD) and Fremont Union High School District (FUHSD). Polic�l�: Coordination with Re�ional E�forts to Address Housing-Related Issues Coordinate efforts�vith regional organizations including ABAG, as svell as nei�hborin� iurisdictions, to address housin is� sues. Page 3 of 3 50 city of ATTACHMENT E ` CU PERTI NO housing element update Summary of Financial Resources for Housing The City of Cupertino has access to a variety of existing and potential funding sources for affordable housing activities. These include programs from federal, state, local, and private resources. U.S. Department of Housing and Urban Development (HUD) 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. For the 2014 fiscal year, the City is estimated to receive approximately $310,950 in CDBG funds. 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. Cupertino Below Market Rate (BMR)Affordable Housing Fund (AH� The City of Cupertino has a Below Market Rate (BMR) Affordable Housing Fund (AHF) 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 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 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 trough Project Sentinel, and assistance to very low income persons and Page 1 of 3 51 � ATTACI IMI;NT � families provided through West Valley Community Services. As of end of 2013, there is approximately $1.2 million in the Below Market Rate (BMR)Affordable Housing Fund (AHF). Housing Trust Silicon Valley (formerly Housing Trust of Santa Clara County) Housing Trust Silicon Valley provides programs to to increase the supply of affordable housing, assist first-time homebuyers, prevent homelessness and stabilize neighborhoods. These programs include down-payment assistance for first-time homebuyers, closing cost assistance and predevelopment, acquisition and rehabilitation loans to developers. The Housing Trust's Affordable Housing Growth Fund comprises of funds from local jurisdictions and lending institutions. The City of Cupertino has contributed approximately $1 million to the Fund through the City's former Redevelopment Agency. The Housing Trust has financed affordable housing projects in the City of Cupertino which include the Vista Village and Price Avenue properties. Santa Clara County Office of Affordable Housing - 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% of their annual mortgage interest as a dollar-for-dollar tax credit against their federal personal 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 an MCC Program that has assisted over 200 low and moderate-income first time homebuyers in Cupertino to qualify for a mortgage. During the last Housing Element period, the MCC Program assisted three low- and moderate-income residents in the City of Cupertino. Housing Authority of the County of Santa Clara (HACSC) and 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% 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. 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 ten-year period, provided that the housing meets the following minimum low-income occupancy requirements: 20% of the units must be affordable to households at 50% of area median income (AMI) or 40% of the units must be affordable to those at 60% of AMI. The total credit over the ten-year period has a present value equal to 70% of the qualified construction and rehabilitation expenditure. The tax credit is typically sold to large investors at a syndication value. Page 2 of 3 52 I ATTACHMENT 5 U.S. Department of Housing and Urban Development (HUD) Home investment Partnerships Program (HOME)funds HOME Investment Partnership Program (HOME) funds are also granted by HUD. These have a more focused scope than CDBG. The HOME program provides formula grants to States and localities that communities use - often in partnership with local nonprofit groups - to fund a wide range of activities including building, buying, and/or rehabilitating affordable housing for rent or homeownership or providing direct rental assistance to low-income persons. The City of Cupertino does not receive HOME funds directly from HUD (due to population thresholds) but is eligible to apply through the State of California HOME program or the City also has the option of joining the County of Santa Clara HOME consortium. As a qualified "urban county" the County of Santa Clara receives annual entitlement grants and disburses the funds to local participating jurisdictions accordingly. Page 3 of 3 53