Cupertino City Council
July 25, 2023

City Council
July 25, 2023
6th Cycle Housing Element
Update
Agenda
 Background
 What we know now
 Updated sites strategy
 Policies
 Timeline and next steps
Background
 What is a Housing Element?
 State-mandated Element of City’s General Plan
 Why update it now?
 Unlike other General Plan Elements required by
State law to be updated every 8 years
 Purpose of the Update:
 Study and plan for housing needs in the
community, across all income levels

Background
 What does State law require?
 Public Participation
 Needs Analysis
 Review of prior Housing Element policies/programs
 Develop goals/policies/programs to address current
needs
 Housing Sites Inventory
 Who reviews and certifies compliance with
State law?
 CA Department of Housing and Community
Development (HCD)

Related Updates
 Conforming changes:
 Other General Plan Elements – Land Use,
Transportation, Specific Plans
 Rezoning
 State law requirements:
 Health and Safety Element
 Zoning amendments (emergency shelters etc.)
 Other – necessary to implement HE programs (e.g.

Objective standards for housing developments)
Background
 6th Cycle Housing Element update
covers 2023 – 2031 Planning Period.
 Certification deadline: January 31, 2023
(passed)
 Rezoning must be completed by Jan 31, 2024
 11 jurisdictions in Santa Clara County (15
cities/1 county) do not have compliant
Housing Elements
 ~56% of 109 ABAG jurisdictions not in compliance
 ~1/3rd of SCAG jurisdictions still out of compliance

Background
 State-wide Housing
Needs
Determination made
by HCD for each
region within State
 Cupertino in 9
County ABAG
region

Santa Clara County 6th RHNA Cycle

Income Group Units % of total
Very Low Income
(<50% of AMI)
1,193 26.0
Low Income
(50%-80% of AMI)
687 15.0
Moderate Income
(80%-120% of AMI)
755 16.5
Above Moderate Income
(>120% of AMI)
1,953 42.5
Total 4,588 100
Affordable
Units =
2,635
Cupertino’s 6th Cycle RHNA
Background: 5th Cycle Performance
 City’s 5th Cycle RHNA: 1,064 units
 Housing Element sites: 5 total, capacity ~1,400 units  Approved projects on all 5 Housing Element sites
 Total approved units: 3,370 units
 VLI units: 362; LI units: 847; Mod units: 75
 Building Permits issued: 546 units
 VLI units: 48; LI units: 19; Mod units: 158
 4 out of 5 projects utilized State Density Bonus law
 Density Bonus requested: 3 projects
 Incentives: 2 projects
 Waivers: 3 projects
 Reduced parking standards: 3 projects

Background: 6th Cycle vs. 5th Cycle
 RHNA ~3x higher in Bay Area
 Fewer undeveloped sites, more reliance on
redevelopment to meet RHNA
 New legislation adds requirements in:
 Developing policy/programs
 Greater accountability to produce housing
 Site selection
 Less discretion in housing development
 More reporting
 Affirmatively Furthering Fair Housing (AFFH)
 More outreach and inclusion
 HE more like contract than standalone document.

Background
 What can happen if city does not have a
certified Housing Element?
 Loss of local land use control – Builder’s Remedy
projects
 Court receivership appointing an agent to
bring City’s Housing Element compliance
 Lawsuits and attorney fees
 Ineligibility for grant funding
 Financial penalties, court issued fines
 Streamlined ministerial approval of projects

What is Affirmatively Furthering Fair
Housing (AFFH)?
 AB 686 (2018) defines AFFH as: “taking meaningful
actions, in addition to combating discrimination,
that overcome patterns of segregation and foster
inclusive communities free from barriers that
restrict access to opportunity based on protected
characteristics.”
 Three community meetings focused on AFFH held
May-September 2022.

Affirmatively Furthering Fair Housing
(AFFH) - Goals
 Address disparities in housing needs and
access to opportunities.
 Replace segregated living patterns with
integrated and balanced living patterns.
 Transform racially and ethnically concentrated
areas of poverty into areas of opportunity.
 Foster and maintain compliance with civil
rights and fair housing laws.

Affirmatively Furthering Fair Housing
(AFFH) - Cupertino
 Most of City is Highest Resource with Access to
Opportunities
 Housing anywhere in City would regionally
Affirmatively Further Fair Housing
 City has higher RHNA and must look to
accommodate persons who currently do not
reside here

What’s happened so far?
 Community meetings – Aug & Dec 2021
 AFFH focused meetings:
 May 2022 – Unhoused, Veterans & individuals with disabilities  Jul 2022 – Students and Seniors
 Sept 2022 – Cash-poor/House rich and workers
 Consultant released – Oct 2022
 Council directs staff to submit Draft HE to HCD – Nov 2022  Draft HE submitted to HCD – Feb 4, 2023
 New Consultant approved – Mar 2023
 NOP for EIR sent to OPR’s clearinghouse – Apr 2023
 EIR scoping meeting – April 18, 2023
 Comments received from HCD – May 4, 2023

What’s happened so far?
 Joint Study Sessions with HC/PC/CC - April/May 2021 (2 meetings)
 Consultant selected: September 2021, following multiple RFPs
 City Council: Sept 2021 – Aug 2022 (8 meetings)
 Housing Commission – Dec 2021, Jun/Jul 2022 (3
meetings)
 Planning Commission – Jan 2022 – Jul 2022 (6
meetings)
 Community Engagement Plan – Strategic Advisory
Committee* – Mar 2022 – Oct 2022 (8 meetings)
* Two councilmembers, HC Chair and PC Chair

Income Group Units % of total
Very Low Income
(<50% of AMI)
1,193 26.0
Low Income
(50%-80% of AMI)
687 15.0
Moderate Income
(80%-120% of AMI)
755 16.5
Above Moderate Income
(>120% of AMI)
1,953 42.5
Total 4,588 100
Affordable
Units =
2,635
Cupertino’s 6th Cycle RHNA
RHNA Buffer
 Why do you need a RHNA Buffer?
 SB166 (2017): No net loss law
 Mandates that jurisdictions must maintain
adequate site inventory to accommodate
remaining unmet RHNA by each income
category at all times
 How much is recommended?
 ~ 25 - 30% particularly for lower income levels to
ensure city does not have to update sites
inventory before next HE update
Goals / Policies / Programs
Goals, Policies and Programs

Required Programs and Policies
 Programs to provide Adequate Housing Sites
 Programs to Assist Lower-Income Housing
Development
 Programs to Address Housing Constraints
 Programs to Conserve and Improve the
Housing Stock
 Programs to Affirmatively Further Fair Housing
 Programs to Preserve ”at risk” Units
 Programs for ADUs/Second Units
Sites Inventory
 Robust discussion in 2022 at Housing and
Planning Commissions and City Council
 Started with all potential sites throughout the
City which:
 Met HCD size criteria – b/w 0.5 – 10 ac.
 Indicated owner interest
 Outside of fire hazard and geologic and
other hazard zones – more
environmental impacts
Sites Inventory
 More Interest in accommodating more
development in western and southern parts of
city
 Less interest in accommodating housing east
of De Anza Blvd
 Locate housing sites to counteract declining
school enrollment
Site selection strategy
 Comments from HCD: reliance on pipeline units
 New State law realities (AB 2011)
 Proximity to transportation – AB32/SB375
 Consultant experience based on likelihood of
site acceptance by HCD
 Development potential of site
 Size of sites (0.5 acres (min.) to 10 acres (max.)
Pipeline Projects
 Over 3,500 units in first Draft HE
 Likely 1,500–1,600 units will be allowed at
Vallco (west side only)
 Likely elimination of Hamptons (600 units)
from pipeline
 If developed by 2031, City still gets credit
for these units
Land use and Transportation
 State laws focus on linking land
use and transportation to align
with AB32 (2006) and SB375
(2008) – Climate Change and
GHG reduction
 Regional plans (Plan Bay Area
2050 and Regional
Transportation Plan) align with
state law:
 Identifies Heart of the City as
Priority Development Area
 Identifies transportation
investment to support
growth to reduce GHG
 City’s policies align

AB 2011/SB 6
 Effective July 1, 2023
 Allows Residential development on
Commercial-Office Corridors regardless of
Zoning
 Density and building height varies
depending on lot size and width of corridor
 45-foot minimum building height
 Zero-foot front setback
AB 2011/ SB 6?

SITE DENSITY
Site < one (1) acre 30 du/acre
Site > one (1) acre and Commercial
Corridor right-of-way < 100 feet 40 du/acre
Site > one (1) acre and Commercial
Corridor right-of-way > 100 feet 60 du/acre
Site within one half-mile of Major Transit
Stop (N/A in Cupertino) 80 du/acre
AB 2011
Sites

AB2011
with
HCD
size
criteria

Updated Site Selection strategy
 Staff recommends using updated site
selection strategy based on:
 Consultant’s feedback based on
extensive HE update experience
 Input from HCD on pipeline projects
 HCD size and other criteria
 State law (AB2011/SB6) framework to
align transportation with land use
Housing Policy Areas
 Programs to Assist Lower-Income Housing
Development –
 Examples: Support Grant applications;
Provide technical support; Issue NOFA for
BMR Affordable Housing Funds
 Programs to Address Housing Constraints –
 Examples: Adopt Objective standards,
Continue fee waivers for affordable units
and/or 100% affordable projects;
evaluate Parking standards
Housing Policy Areas (cont.)
 Programs to Conserve, Improve and Expand
City Housing Stock –
 Examples: Requiring replacement of at
least as many units as exist on a site;
Disallow conversion of multi-family units to
Single Family; CDBG funds for
conservation/ improvements
Housing Policy Areas (cont.)
 Programs to Affirmatively Further Fair
Housing –
 Examples: Upzone sites adequately to
allow accommodation of RHNA; Support
teacher housing and ELI projects;
Continue to support the development of
ADUs, which offer opportunities with
modest increases in density; Enhance
"missing middle" housing policies
Housing Policy Areas (cont.)
 Programs to Preserve ”at risk” Units –
 Examples: programs to meet with
affordable housing operators annually.
 Programs for ADUs/Second Units –
 Examples: Continue to offer streamlined
pre-approved plans; Evaluate and
participate in local and regional efforts
on ADU programs.

HCD comments
 Received May 4, 2023
 General in nature but comprehensive
 Asks for more analysis in several areas
 Some comments do not apply to City (e.g.
manufactured homes/ADUs)
 No specific feedback on Sites Inventory,
except pipeline (discussed earlier)
Council consensus on:
 Updated sites strategy
 Identifying priority housing policy areas
among the following:
 Assist lower income
households
 Address constraints
 Conserve and
Improve Housing
Stock
 Affirmatively Further
Fair Housing
 Preserve “at risk”
units
 ADUs/Second Units
Timeline and Next Steps
Aug/ Early
Sept 2023
 Publish Revised
Draft HE
 Public Outreach
re: zoning
Dec 2023
Jan
2024
Oct/Nov
2023
 EIR preparation
continued
 Comments from
HCD
Sept 2023
 Submit revised
draft to HCD
Mar/Apr
2024
 Publish Draft EIR
 Prepare 2nd
Revised Draft HE
 Revised Draft to HCD
 Review/Comment on
Draft EIR
 Comments from HCD
 Final EIR
 Adoption Hearings