CC Resolution No. 20-067 Approving the Substantial Amendments to the FY 2019-20 Annual Action Plan, FY 2015-20 Consolidated Plan, and Citizen Participation Plan to Provide Funding for the COVID-19 Small Business Relief Grant Program, Which is an Eligible RESOLUTION NO. 20-067
A RESOLUTION OF THE CUPERTINO CITY COUNCIL APPROVING THE
SUBSTANTIAL AMENDMENTS TO THE FY 2019-20 ANNUAL ACTION
PLAN, FY 2015-20 CONSOLIDATED PLAN, AND CITIZEN
PARTICIPATION PLAN TO PROVIDE FUNDING FOR THE COVID-19
SMALL BUSINESS RELIEF GRANT PROGRAM, WHICH IS AN ELIGIBLE
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD)
ACTIVITY IN RESPOND TO COVID-19
WHEREAS, the Housing and Community Development Act of 1974
provides that funds be made available for the CDBG Program; and
WHEREAS, the City of Cupertino wishes to apply for funds as an
Entitlement Jurisdiction under said Act; and
WHEREAS, the Coronavirus Aid, Relief and Economic Security Acts
(CARES Act) (H.R. 748), which provided $5 billion to the CDBG program to
rapidly respond to the COVID-19 pandemic, was signed into law on March 27,
2020.
WHEREAS,with the passage of the CARES Act, the City has been allocated
$229,017 in CDBG Coronavirus (CDBG-CV) funds for COVID-19 response
activities. To access these CDBG-CV funds, HUD is requiring the City to
substantially amend its FY 2015-2020 Consolidated Plan, its FY 2019-2020 Annual
Action Plan, and its CPP (Exhibit A).
WHEREAS, on May 19, 2020, the Cupertino City Council approved an
allocation of$229,017 of Cupertino's future CDBG funds made available through
the Federal stimulus CARES Act towards the creation of a Small Business Relief
Grant Program.
NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby
approve the attached substantial amendments to the FY 2019-20 Annual Action
Plan, FY 2015-20 Consolidated Plan, and Citizen Participation Plan to provide
funding for the Covid-19 Small Business Relief Grant Program,which is an eligible
HUD activity in respond to COVID-19.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 2nd day of June, 2020, by the following vote:
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Resolution No. 20-067
Page 2
Vote Members of the City Council
AYES: Scharf, Paul, Chao, Sinks, Willey
NOES: None
ABSENT: None
ABSTAIN: None
SI D:
Steven Scharf, Mayor Date
City of Cupertino
ATTEST:
Kirsten Squarcia, City Clerk Date
CUPERTINO
Substantial Amendments to HUD
FY 2015-2019 Consolidated Plan,FY 2019-2020 Annual Action Plan,
and Citizen Participation Plan
The substantial amendments to the City of Cupertino's HUD-approved FY 2015-2020
Consolidated Plan, 2019-20 Annual Action Plan, and Citizen Participation Plan (CPP) addresses
the community needs resulting from the COVID-19 pandemic. The City of Cupertino, as an
entitlement jurisdiction, is required by the U.S. Department of Housing and Urban Development
(HUD)to submit a five-year Consolidated Plan,Annual Action Plans, and CPP in order to
receive annual federal Community Development Block Grant(CDBG) funds that the City
utilizes to address community development needs.
Background
The Coronavirus Aid, Relief and Economic Security Acts (CARES Act) (H.R. 748), which
provided $5 billion to the CDBG program to rapidly respond to the COVID-19 pandemic, was
signed into law on March 27, 2020. With the passage of the CARES Act, the City of Cupertino
has been allocated $229,017 in CDBG Coronavirus (CDBG-CV) funds for COVID-19 response
activities. To access these CDBG-CV funds, HUD is requiring the City to substantially amend its
FY 2015-2020 Consolidated Plan, its FY 2019-2020 Annual Action Plan, and its CPP. The
substantial amendments to these documents are explained in detail on subsequent pages of this
document.
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The CARES Act, in order to prevent the spread of COVID-19 and mitigate its health and
economic impacts, also provided specific waivers and permitted flexibility in CDBG program
requirements that include suspending the 15 percent cap on funding public services,reducing the
public comment period from 30 to 5 days (please see CPP below), and allowing the option of
virtual meetings in lieu of in-person public hearings in order to comply with national and local
social gathering requirements.
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Citizen Participation Plan
The City's CPP is critical in ensuring that Cupertino residents are provided the opportunity to
provide input and comment on the Consolidated Plan and Annual Action Plans. The CPP
provides requirements for the public process when a"substantial amendment"to the Annual
Action Plan is proposed. The following changes constitute a substantial amendment and require a °
30-day public notice as described in the CPP:
1. Changes in the use of CDBG funds from one eligible activity to another;
2. Changes in the method of distribution of such funds;
3. Changes in policy or goals and objectives; and
4. Other similar changes.
The amendments proposed to the 2015-2020 Con Plan and 2019-2020 Annual Action Plan fall
under category 3 described in the CPP. However, due to COVID-19, HUD has issued guidance
that waives the CPP requirements for entitlement recipients, provided that(1)no fewer than five a
days are provided for public comment and that(2)reasonable notice and the opportunity to �Y
comment is provided.
Public Process
The City is providing notice of a five-day public comment period as part of the HUD public
participation exemption process. The 5-day comment period for the Substantial Amendments is
May 27tb through June 2nd. The Substantial Amendments are posted on the City's website to
solicit Cupertino residents' input and comments. Additionally, one"virtual"public hearing will
be held to provide opportunities for public comment:
• June 2, 2020—City Council consideration of Substantial Amendments adoption, 6:45pm,
Virtual Meeting,which can be found here:
https:Hcupertino legistar com/DepartmentDetail.aspx?ID=22534&GUID=759DE527-
B7CF-4B4C-88AB-B83875AB732D&Mode=MainBody.
• Related documents can also be viewed on the City's CDBG website:
https•//www cupertino or our-city/departments/community-
development/housing/community-development-block-grant-program
Conunents may also be provided to Kerri Heusler, Housing Manager,by email
(KerriH a,cupertino.org), phone(408-777-3251) or in writing addressed to:
City of Cupertino
ATTN: CDBG
Community Development Department
10300 Torre Ave
Cupertino, CA 95014
Substantial Amendment to
FY 2015-2020 Consolidated Plan
The FY 2015-2020 Consolidated Plan is substantially amended to allocate CDBG-CV
Rinds.
SP-25 Priority Needs
In addition to the priority needs specified in the Consolidated Plan, the City would
include Economic Development as a priority need to provide economic development
assistance to small businesses within the City. The Economic Development priority need
will be added as priority need number 5 in Table 73 of the 2015-2020 Consolidated Plan.
Table 73 - Priority Needs Summary
Sort Priority Priority Description Population Goal Basis for Relative
Order Need Level Priority
1 Affordable High Nearly one-third of Income Level: Assist in Qualitative
Housing households(32 percent . Extremely Low the creation feedback collected
or 10,155)in the City are • Low and through the
LMI with incomes . Moderate preservatio regional forums
ranging from 0-80%area n of and regional needs
median income(AMI). Family Types: affordable survey,which were
housing for substantiated by
As stated in the Needs • Large Families low income quantitative data
Assessment,cost burden • Families with and special reported in the
is the most common Children needs Needs Assessment
housing problem,with • Elderly households. and Market
32 percent of households Analysis,served as
in the City experiencing Homeless: the basis for
either cost burden or . Chronic prioritization.
severe cost burden. Homelessness
Among owner . Individuals Energy efficiency,
households,32 percent Families with water conservation,
are cost burdened and 13 Children and greenhouse gas
percent are severely cost . Mentally Ill reduction are all
burdened.Among renter . Chronic growing policy
households,36 percent Substance concerns for the
are cost burdened and 18 Abuse City.The City will
percent are severely cost . Veterans continue to support
burdened. . Persons with environmentally-
HIV/Aids sustainable
The Housing Authority . Victims of residential
of the County of Santa development, j
Clara assists Domestic particularly for
approximately 17,000 Violence affordable housing
households countywide • Unaccompanied stock.
through the federal Youth
Section 8 Housing Non-homeless
Choice Voucher program Special Needs:
(Section 8).The Section . Elderly
8 waiting list contains . Frail Elderly
21,256 households—an . Persons with
estimated 10-year wait. Mental
Disabilities
• Persons with
Physical
Disabilities
• Persons with
Alcohol or
Other
Addictions
• Persons with
HIV/AIDS and
their Families
• Victims of
Domestic
Violence
2 Homelessne High The Santa Clara region is Income Level: Support Qualitative
ss home to the fourth- 0 Extremely Low activities to feedback collected
largest population of • Low prevent and through the
homeless individuals • Moderate end regional forums
(6,681 single homelessne and regional needs
individuals),90 and the Family Types: ss. survey,which were
highest percentage of substantiated by
unsheltered homeless of ' Large Families quantitative data
any major city(75 • Families with reported in the
percent of homeless Children Needs Assessment
people sleep in places • Elderly and Market
unfit for human Analysis,served as
habitation). Homeless: the basis for
• Chronic prioritization.
Homelessness
• Individuals
Families with
Children
• Mentally Ill
• Chronic
Substance
Abuse
• Veterans
• Persons with
HIV/Aids
• Victims of
Domestic
Violence
• Unaccompanied
Youth
Non-homeless
Special Needs:
• Elderly
• Frail Elderly
• Persons with
Mental
Disabilities
• Persons with
Physical
Disabilities
• Persons with
Alcohol or
Other
Addictions
• Persons with
HIV/AIDS and
their Families
• Victims of
Domestic
Violence
3 Community High Consolidated Plan forum Income Level: Support Qualitative
Services and and survey participants • Extremely Low activities feedback collected
Public emphasized the need to . Low that through the
Improvemen support a broad range of • Moderate strengthen regional forums
is community services. neighborho and regional needs
Low income households Family Types: ods. survey,which were
and special needs • Large Families substantiated by
populations require a • Families with quantitative data
multifaceted network to Children reported in the
address basic needs such . Elderly Needs Assessment
as food,clothing,health, and Market
and shelter,as well as Non-homeless Analysis,served as
other services outlined in Special Needs: the basis for
NA-50 Non-Housing • Elderly prioritization.
Community • Frail Elderly
Development Needs. • Persons with
Mental
Additionally,community Disabilities
forum and survey • Persons with
i
participants expressed Physical
the need for ongoing Disabilities
maintenance and • Persons with
upgrades to local public Alcohol or
facilities,such as parks, Other
community centers, Addictions
youth and senior centers, . Persons with
sidewalks and lighting, HIV/AIDS and
recreation facilities,and their Families
others. • Victims of
Domestic
Violence
• Non-housing
Community
Development
4 Fair High Fair housing represents Income Level: Promote Qualitative
Housing an ongoing concern in • Extremely Low fair feedback collected
the County. Of the • Low housing through the
1,472 total survey • Moderate choice. regional forums
respondents, 192(16 and regional needs
percent)said they have Family Types: survey,which were
experienced some form substantiated by
• Large Families
of housing • Families with quantitative data
discrimination.The reported in the
majority of respondents Children Needs Assessment
29percent)who 0 Elderly and Market
experienced • Public Housing Analysis,served as
discrimination indicated Residents the basis for
that race was the primary prioritization
factor for that Homeless:
discrimination. • Chronic
Additionally,66 percent Homelessness
indicated they were • Individuals
discriminated against by Families with
a landlord or property Children
manager.Interviews • Mentally Ill
with local service . Chronic
providers indicate that Substance
many home seekers and Abuse
landlords are unaware of • Veterans
federal and state fair
housing laws • Persons with
HIV/Aids
• Victims of
Domestic
Violence
• Unaccompanied
Youth
Non-homeless
Special Needs:
• Elderly
• Frail Elderly
• Persons with
Mental
Disabilities
• Persons with
Physical
Disabilities
• Persons with
Alcohol or
Other
Addictions
• Persons with
HIV/AIDS and
their Families
• Victims of
Domestic
Violence
5 Community High Grant program that Income Level: Economic In response to the
Developmen avoids job loss caused by • Extremely Low Developme COVID-19
t Needs— business closures related • Low nt pandemic,
COVID-19 to social distancing by • Moderate economic
Response providing short-term development is a
working capital high priority need
assistance for operating within the
costs(employees' community.
salaries,tenant space
rent/lease,and/or
utilities)to small
businesses to enable
retention and/or rehiring
of jobs.
SP-35 Anticipated Resources
$229,017 in CDBG-CV funds is identified as additional financial resources in Table 76—
Anticipated Resources.
SP-45 Goals Summary
A new Consolidated Plan goal is added.
Goal#5: Economic Development
Table 79 —Goals Summary
Sort Goal Name Start End Category Geographic Needs Funding Goal
Order Year Year Area Addressed Outcome
Indicator
1 Affordable 2015 2020 . Affordable N/A Affordable CDBG: Rental units
Housing Housing Housing $969,595 rehabilitated:
12 Housing
Units
2 Homelessness 2015 2020 • Homeless N/A Homelessness CDBG: Public
$80,000 service
i
activities
other than
for low/mod
income
housing
benefit:
340 Persons
Assisted
3 Strengthen 2015 2020 . Non-housing N/A Community CDBG: Public
Neighborhoods Community Services and $269,332 service
Development Public activities
Non- . Improvements other than
Homeless for low/mod
Special income
Needs housing
benefit:
44 Persons
Assisted
Public
facility or
infra-
structure
activities
other than
for low/mod
income
housing
benefit:
17 Persons
Assisted
4 Fair Housing 2015 2020 . Non- N/A Fair Housing CDBG: Public
Housing $26,933 service
Community activities
Development other than
for low/mod
income
housing
benefit:
45 persons
assisted
5 Community 2019 2020 . Economic N/A Economic CDBG-CV Up to 10
Development Development Development $183,213.60 small
Needs— business
COVID-19 grants will
Response be provided
to a
maximum of
10 qualified
businesses.
t
Substantial Amendment to
FY 2019-2020 Annual Action Plan
The FY 2019-2020 Annual Action Plan is substantially amended to allocate CDBG-CV
funds to the following eligible activities that prevent and respond to the spread of
COVID-19.
AP-15 Expected Resources
$229,017 in CDBG-CV funds is identified as additional financial resources.
AP-20 Goals
A new Action Plan goal is added.
Goal#5: Support disaster response and recovery activities in the event of a local, state, or
national disaster or emergency, such as the COVID-19 pandemic.
Table 7- Goals Summa
Sort Goal Name Start End Category Geographic Needs Funding Goal Outcome
Order Year Yea Area Addressed Indicator
r
1 Affordable 2015 2019 Affordable Citywide Affordable CDBG: Rental units
Housing Housing Housing $245,185.20 Rehabilitated: 5
Homeowner
Housing
Rehabilitated: 7
2 Homelessness 2015 2019 Homeless Citywide Homelessness CDBG: Public service
$35,646.16 activities other than
Low/Moderate
Income Housing
Benefit
100 Persons
Assisted
3 Strengthen 2015 2019 Non-Housing Citywide Community CDBG: Public service
Neighborhoo Special Services and $20,935.04 activities other than
ds Needs Non- Public Low/Moderate
Housing Improvement Income Housing
Community s Benefit: 21 Persons
Development Assisted
4 Fair Housing 2015 2019 Non-Housing Citywide Fair Housing CDBG:$0 Public service
Community activities other than
Development Low/Moderate
Income Housing
Benefit: 15 Persons
Assisted
5 Community 2019 2019 Economic N/A Economic CDBG-CV Up to 10 small
Development Development Development $183,213.60 business grants will
Needs— be provided to a
COVID-19 maximum of 10
Response qualified 9
businesses. p
AP-35 Projects
The following COVID-19 related activities are proposed to be funded with the City's
CDBG-CV funds. The proposed activities meet one of the three National Objectives as
required by CDBG regulations:
• Benefit low- and moderate-income persons;
• Aid in the prevention or elimination of slums or blight; or
• Meet an urgent need.
The new proposed program is the Economic Development Small Business Relief Grant
Program. The Program is designed to assist businesses through the provision of financial
assistance. Maximum assistance under the program is up to $10,000 per grant.
Recipients will be required to ensure that at least one permanent full-time equivalent
position is retained/created for low- and moderate-income persons.
Activity CDBG-CV National Objective CDBG Matrix
Amount Code
Economic $183,213.60 Low/Mod Job Creation 17 D, 18A**
Development or Retention(LMJ)*
Small Business
Relief Grant
Program
Administration $45,803.40
Total $229,017.00
*Must meet requirements of 24 CFR 570.208(a)(4)
**Matrix codes are used to indicate but do not establish activity eligibility in accordance
with the CDBG program regulations 24 CFR 570.201-207.
Substantial Amendment to
Citizen Participation Plan
A new section, Citizen Participation Requirements in State of Emergency, with the
following language will be added to the City of Cupertino's current Citizen Participation
Plan in order to streamline the funding allocation process and reduce delays in accessing
HUD funding during a state of emergency.
The City of Cupertino shall comply with all U.S. Department of Housing and Urban
Development(HUD) memorandums and notices that transmit citizen participation
requirements in the event of a local, state, or national emergency or disaster. In order to
secure and access new HUD funding and/or re-allocate existing HUD funding to allow
the City to respond to the state of emergency in the most expeditious manner, such HUD
memorandums and notices automatically supersedes any conflicting provisions of the
Citizen Participation Plan, and therefore no formal amendment is required when such
emergency memorandums and notices are in effect.
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