CC 12-15-20 Item No. 12 Adoption of a Housing Program for Incentivizing affordable Housing_Staff Presentation1
City Council
December 15, 2020
Adoption of a Housing Program for
incentivizing affordable housing
Background
•Affordable Housing strategies (City Work
Program Item FY20/21) includes
•Updates to City’s Density Bonus
Ordinance
•Adoption of proposed housing program
•Other amendments – Spring 2021
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CC 12-15-20 Item No. 12
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State Law
Current Jan. 1, 2021
Density Bonus Maximum 35%
- 100% affordable
projects get more
bonuses
Maximum 50%
Proposed changes to Housing ProgramProposed changes to Housing Program
Existing Proposed
Target Group
Proportion of
Total
Affordable
Dwelling Units
Maximum
Density Bonus
Proportion of
Total
Affordable
Dwelling Units
Maximum
Density
Bonus
Very Low
Income(1)
5% 20%No change
6% - 10% 22.5% - 32.5%
6% - 12% 22.5% - 37.5%
11% or more 35%13% or more 40%
Low Income(2)
10% 20%
No change
11% -19% 21.5% - 33.5% 11% - 22% 21.5% - 38.5%
20% or more 35%
23% or more 40%
Moderate
Income(3)
(Common
interest
developments)
10% 5% No change
11% - 39% 6% - 34% 11% - 44% 6% - 39%
40% or above 35% 45% or above 40%
Senior Citizen 35 units
(minimum)20% No change
(1)For each 1% increase over
5% of the target units, the
density bonus shall be
increased by 2.5% up to a
maximum of 35 40%.
(2)For each 1% increase over
10% of the target units, the
density bonus shall be
increased by 1.5% up to a
maximum of 35 40%.
(3)For each 1% increase over
10% of the target units, the
density bonus shall be
increased by 1% up to a
maximum of 35 40%.
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State Law vs. Local standardsState Law vs. Local standards
State Law Local
Current Jan. 1, 2021 Current Jan. 1, 2021
Density Bonus
Max. 35%
- 100% aff. Proj.
more bonuses
Max. 50%Same as
“current” state Max. 40%
Incentives/
Concession
Two 20% LI units 17% LI units Same as
“current” state No change
Three 30% LI units 24% LI units Same as
“current” state No change
Parking 2/3 BR 2 spaces/unit 1.5
spaces/unit Same as state
Distance to major
transit stop No definition Defined Same as state
Proposed housing program
State Law Cupertino Local
Program
Density
bonus
Large increases in market
rate units; small increases
in affordable units
Need for affordable
units but on track to
meet RHNA for above-
mod units
Use of
Density
bonuses
State law based on San
Diego program. After local
program saw increase in
use of density bonuses.
800 market-rate and 130
affordable
All but one developer
has used maximum
available density bonus
since 2015.
1,590 market-rate and
1,267 affordable
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Proposed housing program
State Law Cupertino Local
Program
Terner
Center
Analysis
Proposed changes slightly
less fiscally attractive than
existing law.
May be slightly more
attractive than state
law
AB 1763 Allowing 50% density
bonus for market rate
projects takes away
competitive edge that AB
1763 provides with 80%
density bonus for 100%
affordable projects.
May maintain some
competitive edge for
affordable housing
developers
Recommended Action
●Adopt draft resolution:
●Find action exempt from CEQA
●Adopt new Housing Program
●Initiate Density Bonus ordinance
amendments to reflect new program
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