Presentations (Updated 05-16-2024) — Cupertino City Council, May 14, 2024

CC 05-14-2024

Housing Element

Updated Final
Presentation
1 City Council
May 14, 2024
6th Cycle Housing Element
Update Adoption
Agenda
 Housing Element
Overview
 Outreach Summary
 RHNA/Priority Sites
 Policies and Strategies
 HCD Review and
Comments
 Environmental Review
 Associated GP
amendments
 Planning Commission
Recommendation
 Staff Recommendation
 Project Update/Next steps
1 2
2 Housing Element OverviewHousing Element Overview
What is a Housing Element? Why Update it?
 What is a Housing Element?
 State-mandated Element
of City’s General Plan
 Why update it now?
 Required to be updated
every 8 years by law
 Update by when?
 By Jan. 31, 2023 (deadline
passed)
 Update it? How?
 Study and plan for housing
needs in community
between 2023-2031, across
all income levels
 Who certifies compliance?
 CA Dept of Housing and
Community Development
(HCD)
3 4
3 HE Contents
Housing Needs
Assessment
Housing Needs
Assessment
Demographic
Trends
Housing
Market Trends
Special Needs
Groups
Constraints to
Housing
Development
Constraints to
Housing
Development
Resources and
Sites Inventory
Resources and
Sites Inventory
Policies and
Programs
Policies and
Programs
Governmental
and Non-
Governmental
Market Trends
Environmental
Infrastructure
Zoning and
Capacity
ADUs and
Mobile
Homes
Inventory of
Sites
Review of
Previous
Housing Element
Implementation
Identify
2023- 2031
Programs
Assessment of
Fair Housing
Assessment of
Fair Housing
Outreach
Fair Housing
Issues
Site Inventory
Analysis
Contributing
Factors
Other updates
 Conforming General Plan changes:
 Land Use and appendices – Internal consistency
 Mobility and appendices – address environmental
assessment/mitigations
 Conforming Rezoning - map and text
 State law requirements – Health and Safety Element
 Other – necessary to implement HE programs (e.g.

Objective design standards for housing
developments)
5 6
4 6th Cycle vs. 5th Cycle
 RHNA 4x higher in Cupertino--4,588 vs. 1,064
 Few remaining undeveloped sites, reliance on
redevelopment to meet RHNA
 62 properties, 36 development sites
 70% of properties 50 units/acre or more
 New legislation adds requirements in:
 Developing policies/programs
 Greater accountability to produce housing
 Site selection
 Less discretion approving housing developments
 Affirmatively Furthering Fair Housing (AFFH)
 More outreach and inclusion
Noncompliance
 W h a tc a nh a p p e ni fC i t yd o e sn o th a v eac e r t i f i e d Housing Element?
 Loss of local land use and zoning control – Builder’s Remedy projects
 Lawsuits and attorney fees
 Ineligibility for grant funding
 Financial penalties, court issued fines
 Streamlined ministerial approval of projects
 Court receivership appointing an agent to bring
City’s Housing Element into compliance
7 8
5 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.”
 Cupertino - High or Highest Resource for Access to
Opportunities
 Housing anywhere in City would regionally further AFFH  Must look to accommodate persons who currently do not reside in City
 Meeting RHNA alone does not equate to satisfying AFFH (HE-1.3.6: Missing Middle Strategy)
 Three community meetings focused on AFFH held May-
September 2022
Outreach SummaryOutreach Summary
9 10
6 Outreach SummaryOutreach Summary
2021
 Jt. Study Sessions (Apr,
May)
 Comm. Mtgs (Aug, Dec)
 CC Mtg (Sept)
 HC Mtg (Dec)
Jan – Jun
2023
Jul – Dec
2022
 CC Mtgs (Aug, Nov)
 PC (July)
 CEP-SAC mtgs (Jul,
Sep, Oct)
 Comm. Mtg (Jul, Sep)
Jan – Jun
2022
 PC mtgs (Jan, Feb,
Apr, May, June)
 CC mtgs (Mar)
 HC mtg (Jun)
 CEP-SAC mtgs (Mar,
Apr, May, Jun)
 Comm. Mtg (May)
Jan –Mar
2024
 CC Mtg (Jan)
 1st Draft to HCD (2/3)
 Comments from HCD
(5/4)
 CC Mtg (Jul)
 Comm. Mtgs (Aug, Sep)
 3rd Draft to HCD (2/26)
 Revised 3rd Draft to
HCD (3/28)
 Conditional
Certification letter from
HCD (4/10)
Jul – Dec
2023
 2nd Draft to HCD (10/16)
 Revised 2nd Draft to HCD (11/30)
 Comments from HCD (12/15)
RHNA/Sites InventoryRHNA/Sites Inventory
11 12
7 ABAG RHNA
 State-wide Housing Needs
Determination made by HCD
for each region within State
 Cupertino in 9
County ABAG region
 City’s RHNA ~1% of ABAG
region’s RHNA and ~3.5%
of county RHNA
% of totalUnitsIncome Group

26.01,193
Very Low Income
(<50% of AMI)

15.0687
Low Income
(50%-80% of AMI)

16.5755
Moderate Income
(80%-120% of AMI)

42.51,953
Above Moderate Income
(>120% of AMI)
1004,588Total
Affordable
Units =
2,635
City’s 6th Cycle RHNA
Buffer ~ 20-30% particularly for lower income levels recommended to ensure city does not have to update sites inventory before next HE update for “no net loss” purposes. Current RHNA + Buffer accommodates over 6,200 units. 13 14
8 Pipeline
 State law allows credit for approved projects,
referred to as pipeline
 Cupertino allowed ~2,450 units as pipeline
 Lower income: 633
 Moderate income: 49
 Above moderate income: 1,770
 Identify sites to accommodate balance of RHNA
plus buffer
Pre-HE Submittal Inventory
 Started with all potential sites throughout the City which:
 Met HCD size criteria: 0.5 – 10 acres
 Outside of fire hazard and geologic hazard zones – more environmental impacts
 Owner interest a factor, but not required by HCD
 Due to recent development approvals, allow:
 More housing west of De Anza Blvd & south of 85
 Less housing east of De Anza Blvd
 Locate housing sites to counteract declining school enrollment  Avoid displacement of existing residents through redevelopment of residential properties
15 16
9 Policy Framework
 State laws: link land use and transportation (AB 32
and SB 375)
 Regional plans (Plan Bay Area 2050 and Regional
Transportation Plan) align with state law
 AB 2011 (eff. 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 transportation corridor
 Identifies min. development standards
 Ministerial, exempt from CEQA
Current Site selection strategy
With Council direction in July 2023, site selection
strategy adjusted based on:
 New State law realities – AB 2011/SB6
 Proximity to transportation – AB32/SB375
 Aligning with regional plans – PBA2050 & RTP
 City’s existing policies – LU-1.1 & Climate Action Plan  Consultant experience based on likelihood of site
acceptance by HCD
 Size of sites – 0.5 acres (min.) to 10 acres (max.)
 Development potential of site
17 18
10 Current
Housing
Element
Priority
Housing
Sites
Capacity compared to RHNA
SurplusTotal
Capacity
Projected
ADUs
Mixed Use
Site
Capacity
with Rezone
Residential
Site
Capacity
with Rezone
Pipeline
Capacity
2023-2031
RHNA
RHNA
Category
2982,178116596833633
1,193Very Low
687Low
1549095743636049755Moderate
1,2133,166196956621,7701,953Above
Moderate
1,6386,2261921,7271,8552,4524,588Total
19 20
11 Capacity compared to RHNA
Valley Church removed ( 4 parcels )
SurplusTotal
Capacity
Projected
ADUs
Mixed Use
Site
Capacity
with Rezone
Residential
Site
Capacity
with Rezone
Pipeline
Capacity
2023-2031
RHNA
RHNA
Category
1572,037116596692633
1,193Very Low
687Low
928475743630549755Moderate
1,0442,997196955131,7701,953Above
Moderate
1,2945,8811921,7271,5102,4524,588Total
Programs and PoliciesPrograms and Policies
21 22
12 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, Improve and Expand
Housing Stock
 Programs to Affirmatively Further Fair Housing
 Programs to Preserve ”at risk” Units
 Programs for ADUs/Second Units
Housing Policy Areas
 Programs to provide
Adequate Housing Sites:
 Identify sites to
accommodate RHNA
 Create new land use
designations to ensure RHNA
can be accommodated
 Programs to Assist Lower-
Income Housing
Development:
 Support Grant applications;
 Provide technical support;
 Issue NOFA for BMR
Affordable Housing Funds
23 24
13 Housing Policy Areas (cont.)
 Programs to Address Housing
Constraints:
 Adopt Objective standards,
 Continue fee waivers for
affordable units and/or 100%
affordable projects;
 Evaluate Parking standards
 Programs to Conserve, Improve
and Expand City Housing Stock:
 Create new R4 Zoning District;
 Promote options for multi-
generational households &
house sharing;
 Continue to implement a BMR
program
 Disallow conversion of multi-
family to Single Family homes;
 Use CDBG funds for
conservation/ improvements
Housing Policy Areas (cont.)
 Programs to Affirmatively Further Fair Housing:
 Upzone sites adequately to allow accommodation
of RHNA;
 Support teacher housing and ELI projects;
 Continue to support the development of ADUs and
adopt "missing middle" housing policies, which
offer opportunities with modest increases in density
(HE Strategy-1.3.6)
25 26
14 Housing Policy Areas (cont.)
 Programs to Preserve ”at risk”
Units:
 Programs to meet with
affordable housing operators
annually
 Programs for ADUs/Second
Units:
 Continue to offer streamlined
pre-approved plans;
 Evaluate and participate in
local and regional efforts on
ADU programs
HCD Review and CommentsHCD Review and Comments
27 28
15 Process with HCD
 February 3, 2023: 1st submittal to HCD
 May 4, 2023: 16 page letter #1 received
 October 16, 2023: 2nd submittal to HCD
 Informal meeting with HCD resulted in Revised
2nd draft submitted to HCD on Nov. 30, 2023
 December 15, 2023: 5 page letter #2 received
 February 26, 2024: 3rd submittal to HCD
 Informal meeting with HCD staff resulted in Revised
3rd draft submitted to HCD on March 28, 2023
 April 10, 2024: CONDITIONAL COMPLIANCE LETTER

RECEIVED FROM HCD
Revisions to address HCD comments
 Second draft (Oct/Nov) – substantial rewrite of first draft based on HCD comments from May
 All analysis (review of prior housing element, fair housing, needs and constraints analysis) revised
 Sites inventory updated based on Council direction and consultant advice
 Existing policies and strategies revised
 New policies and strategies added in first draft revised or replaced/added to address state law, HCD comments, AFFH  Third draft (Feb/Mar) – targeted edits to second
draft based on HCD comments
 Related to sites and sites inventory
 Refinements to missing middle strategy
29 30
16 Environmental AssessmentEnvironmental Assessment
Settlement/Environmental Assessment
 February 2023: California Housing Defense
Fund/YIMBY Law sue City for noncompliant HE by
adoption deadline
 January 2024: Stipulated Judgment entered into
 Established schedule to complete HE update in
compliance with State law
 Gov’t Code Sec. 65759(a)
 All actions related to adoption of HE and rezoning
are exempt from CEQA
31 32
17 Environmental Issues Analyzed
 Aesthetics
 Air Quality
 Biological Resources
 Cultural and Tribal
Cultural Resources
 Energy
 Geology and Soils
 GHG Emissions
 Hazards and Hazardous
Materials
 Hydrology and Water
Quality
 Land Use and Planning
 Noise
 Population and Housing
 Public Services, Parks,
and Recreation
 Transportation
 Utilities and System
Services
 Wildfire
 Any significant environmental impacts are avoided, minimized, rectified, reduced or eliminated, and/or compensated.
 The General Plan and Muni Code incorporates policies and strategies to protect, preserve, and/or enhance environmental resources.  The following topics were evaluated in environmental assessment:

Environmental Assessment Conclusions
 Program-level significant and unavoidable impacts
for air quality, greenhouse gas emissions, and
transportation (vehicle miles traveled).
 Possible to have less-than-significant impacts in these areas for future projects that meet project-level
thresholds.
 No additional mitigation measures are available at
this phase of project approval (i.e. adoption of HE
and associated amendments)
33 34
18 Associated General Plan
Amendments
Associated General Plan
Amendments
Other General Plan Amendments
 Chapter 3, Land Use and Community Design Element
and Appendix A, Land Use Designations:
 Text changes to address state law requirements &
Housing Element requirements
 Figure changes – reflect density and heights reqd. for developing Priority Housing Sites
 Chapter 5: Text changes to minimize environmental
impacts resulting from development
 General Plan Land Use Map – conforming changes
35 36
19 Planning Commission
Recommendation
Planning Commission
Recommendation
Planning Commission Recommendation
 April 29, Planning Commission recommended adoption
of draft resolution on a 3-2 vote with minor change to
remove a site (Dish n Dash) not allowed as a Priority
Housing Site by HCD
 Missing middle strategy and parkland dedication fee
study discussed.

HCD requirements to address AFFH and
housing constraints
 8 members of public spoke – topics included
 validity of RHNA numbers,
 missing middle strategy and
parking impacts,
 income restrictions for BMR
AHF Funds for residential
rehabilitation projects,
 programs for seniors,
 prevailing wage requirements
 environmental review
37 38
20 Staff RecommendationStaff Recommendation
Recommendation
 Adopt Resolution:
 Remove Site 48 (Dish n Dash) and Sites 13-16 (Valley
Church) (desk item)
 Adopt Chapter 4 (Housing Element), Appendices B
(Housing Element Technical Report) and G
(Environmental Assessment)
 Changes to Chapters 3 (Land Use and Community
Design) and 5 (Mobility), and Appendix A (Land Use
Definitions)
 Changes to Land Use Map (desk item)
39 40
21 Next StepsNext Steps
Timeline and Next StepsTimeline and Next Steps
April 2024
 Letter from
HCD – 4/10
 HC Study
Session – 4/25
 PC rec. – 4/29
Summer 2024
Fall 2024
June 2024
 CC First rezone
reading – 7/2
May 2024
 CC adoption
–5 / 1 4
 PC rec. On
zoning – 6/11
Mar 2025
 Complete rezoning
 Prepare objective
design standards
 Adopt objective
design standards
 APR submitted
41 42
CC 05-14-2024

Housing Element

Presentation
City Council
May 14, 2024
6th Cycle Housing Element
Update Adoption
CC 05-14-2024 Item No. 1
Agenda
 Housing Element Overview
 Outreach Summary
 RHNA/Priority Sites
 Policies and Strategies
 HCD Review and Comments
 Environmental Review
 Associated GP amendments
 Planning Commission Recommendation
 Next steps

Housing Element Overview

What is a Housing Element? Why Update it?
 What is a Housing Element?
 State-mandated Element
of City’s General Plan
 Why update it now?
 Required to be updated
every 8 years by law
 Update by when?
 By Jan. 31, 2023 (deadline
passed)
 Update it? How?
 Study and plan for housing
needs in community
between 2023-2031, across
all income levels
 Who certifies compliance?
 CA Dept of Housing and
Community Development
(HCD)

HE Contents
Housing Needs
Assessment
Demographic
Trends
Housing
Market Trends
Special Needs
Groups
Constraints to
Housing
Development
Resources and
Sites Inventory
Policies and
Programs
Governmental
and Non-
Governmental
Market Trends
Environmental
Infrastructure
Zoning and
Capacity
ADUs and
Mobile
Homes
Inventory of
Sites
Review of
Previous
Housing Element
Implementation
Identify
2023- 2031
Programs
Assessment of
Fair Housing
Outreach
Fair Housing
Issues
Site Inventory
Analysis
Contributing
Factors
Other updates
 Conforming General Plan changes:
 Land Use and appendices – Internal consistency
 Mobility and appendices – address environmental
assessment/mitigations
 Conforming Rezoning – Specific plan, map and text
 State law requirements – Health and Safety Element
 Other – necessary to implement HE programs (e.g.

Objective design standards for housing
developments)

6th Cycle vs. 5th Cycle
 RHNA 4x higher in Cupertino--4,588 vs. 1,064
 Few remaining undeveloped sites, reliance on
redevelopment to meet RHNA
 62 properties, 36 development sites
 70% of properties 50 units/acre or more
 New legislation adds requirements in:
 Developing policies/programs
 Greater accountability to produce housing
 Site selection
 Less discretion approving housing developments
 Affirmatively Furthering Fair Housing (AFFH)
 More outreach and inclusion

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

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.”
 Cupertino - High or Highest Resource for Access to
Opportunities
 Housing anywhere in City would regionally AFFH
 Must look to accommodate persons who currently do not reside in City
 Meeting RHNA alone does not equate to satisfying AFFH (HE-1.3.6: Missing Middle Strategy)
 Three community meetings focused on AFFH held May-
September 2022

Outreach Summary

Outreach Summary
2021
 Jt. Study Sessions
(Apr & May)
 Comm. Mtgs (Aug
& Dec)
 CC Mtg (Sept)
 HC Mtg (Dec)
Jan – Jun
2023
Jul – Dec
2022
 CC Mtgs (Aug, Nov)
 PC (July)
 CEP-SAC mtgs (Jul,
Sep, Oct)
 Comm. Mtg (Jul, Sep)
Jan – Jun
2022
 PC mtgs (Jan, Feb,
Apr, May, June)
 CC mtgs (Mar)
 HC mtg (Jun)
 CEP-SAC mtgs (Mar,
Apr, May, Jun)
 Comm. Mtg (May)
Jan –Mar
2024
 CC Mtg (Jan)
 1st Draft to HCD (2/3)
 Comments from HCD
(5/4)
 CC Mtg (Jul)
 Comm. Mtgs (Aug, Sep)
 3rd Draft to HCD (2/26)
 Revised 3rd Draft to
HCD (3/28)
 Conditional
Certification letter from
HCD (4/10)
Jul – Dec
2023
 2nd Draft to HCD (10/16)
 Revised 2nd Draft to HCD (11/30)
 Comments from HCD (12/15)
RHNA/Sites Inventory

ABAG RHNA
 State-wide Housing Needs
Determination made by HCD
for each region within State
 Cupertino in 9
County ABAG region
 City’s RHNA ~1% of ABAG
region’s RHNA and ~3.5%
of county RHNA

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
City’s 6th Cycle RHNA
Buffer ~ 35% particularly for lower income levels recommended to ensure city does not have to update sites inventory before next HE update for “no net loss” purposes.

RHNA + Buffer accommodates over 6,200 units.

Pipeline
 State law allows credit for approved projects,
referred to as pipeline
 Cupertino allowed ~2,450 units as pipeline
 Lower income: 633
 Moderate income: 49
 Above moderate income: 1,770
 Identify sites to accommodate balance of RHNA
plus buffer

Pre-HE Submittal Inventory
 Started with all potential sites throughout the City which:
 Met HCD size criteria: 0.5 – 10 acres
 Outside of fire hazard and geologic hazard zones – more environmental impacts
 Owner interest a factor
 Due to recent development approvals, allow:
 More housing west of De Anza Blvd & south of 85
 Less housing east of De Anza Blvd
 Locate housing sites to counteract declining school enrollment  Avoid displacement of existing residents through redevelopment of residential properties

Policy Framework
 State laws: link land use and transportation (AB 32
and SB 375)
 Regional plans (Plan Bay Area 2050 and Regional
Transportation Plan) align with state law
 AB 2011 (eff. 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 transportation corridor
 Identifies min. development standards
 Ministerial, exempt from CEQA

Current Site selection strategy
With Council direction in July 2023, site selection
strategy adjusted based on:
 New State law realities – AB 2011/SB6
 Proximity to transportation – AB32/SB375
 Aligning with regional plans – PBA2050 & RTP
 City’s existing policies – LU-1.1 & CAP
 Consultant experience based on likelihood of site
acceptance by HCD
 Size of sites – 0.5 acres (min.) to 10 acres (max.)
 Development potential of site

Current
Housing
Element
Priority
Housing
Sites

Capacity compared to RHNA
RHNA
Category
2023-2031
RHNA
Pipeline
Capacity
Residential
Site
Capacity
with Rezone
Mixed Use
Site
Capacity
with Rezone
Projected
ADUs
Total
Capacity Surplus
Very Low 1,193
633 833 596 116 2,178 298
Low 687
Moderate 755 49 360 436 57 909 154
Above
Moderate 1,953 1,770 662 695 19 3,166 1,213
Total 4,588 2,452 1,855 1,727 192 6,226 1,638
Programs and Policies

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, Improve and Expand
Housing Stock
 Programs to Affirmatively Further Fair Housing
 Programs to Preserve ”at risk” Units
 Programs for ADUs/Second Units

Housing Policy Areas
 Programs to provide
Adequate Housing Sites:
 Identify sites to
accommodate RHNA
 Create new land use
designations to ensure RHNA
can be accommodated
 Programs to Assist Lower-
Income Housing
Development:
 Support Grant applications;
 Provide technical support;
 Issue NOFA for BMR
Affordable Housing Funds

Housing Policy Areas (cont.)
 Programs to Address Housing
Constraints:
 Adopt Objective standards,
 Continue fee waivers for
affordable units and/or 100%
affordable projects;
 Evaluate Parking standards
 Programs to Conserve, Improve
and Expand City Housing Stock:
 Create new R4 Zoning District;
 Promote options for multi-
generational households &
house sharing;
 Continue to implement a BMR
program
 Disallow conversion of multi-
family to Single Family homes;
 Use CDBG funds for
conservation/ improvements
Housing Policy Areas (cont.)
 Programs to Affirmatively Further Fair Housing:
 Upzone sites adequately to allow accommodation
of RHNA;
 Support teacher housing and ELI projects;
 Continue to support the development of ADUs and
adopt "missing middle" housing policies, which
offer opportunities with modest increases in density
(HE Strategy-1.3.6)

Housing Policy Areas (cont.)
 Programs to Preserve ”at risk”
Units:
 Programs to meet with
affordable housing operators
annually
 Programs for ADUs/Second
Units:
 Continue to offer streamlined
pre-approved plans;
 Evaluate and participate in
local and regional efforts on
ADU programs

HCD Review and Comments

Process with HCD
 February 3, 2023: 1st submittal to HCD
 May 4, 2023: 16 page letter #1 received
 October 16, 2023: 2nd submittal to HCD
 Informal meeting with HCD resulted in Revised
2nd draft submitted to HCD on Nov. 30, 2023
 December 15, 2023: 5 page letter #2 received
 February 26, 2024: 3rd submittal to HCD
 Informal meeting with HCD staff resulted in Revised
3rd draft submitted to HCD on March 28, 2023
 April 10, 2024: CONDITIONAL COMPLIANCE LETTER

RECEIVED FROM HCD

Revisions to address HCD comments
 Second draft (Oct/Nov) – substantial rewrite of first draft based on HCD comments from May
 All analysis (review of prior housing element, fair housing, needs and constraints analysis) revised
 Sites inventory updated based on Council direction and consultant advice
 Existing policies and strategies revised
 New policies and strategies added in first draft revised or replaced/added to address state law, HCD comments, AFFH  Third draft (Feb/Mar) – targeted edits to second
draft based on HCD comments
 Related to sites and sites inventory
 Refinements to missing middle strategy

Environmental Assessment

Settlement/Environmental Assessment
 February 2023: California Housing Defense
Fund/YIMBY Law sue City for noncompliant HE by
adoption deadline
 January 2024: Stipulated Judgment entered into
 Established schedule to complete HE update in
compliance with State law
 Gov’t Code Sec. 65759(a)
 CEQA does not apply to actions to bring HE into
compliance with Court Order.

Environmental Issues Analyzed
 Aesthetics
 Air Quality
 Biological Resources
 Cultural and Tribal
Cultural Resources
 Energy
 Geology and Soils
 GHG Emissions
 Hazards and Hazardous
Materials
 Hydrology and Water
Quality
 Land Use and Planning
 Noise
 Population and Housing
 Public Services, Parks,
and Recreation
 Transportation
 Utilities and System
Services
 Wildfire
 Any significant environmental impacts are avoided, minimized, rectified, reduced or eliminated, and/or compensated.
 The General Plan incorporates policies and strategies to protect, preserve, and/or enhance environmental resources.
 The following topics were evaluated in environmental assessment:

Environmental Assessment Conclusions
 EA builds off 2015 General Plan EIR
– Mitigation Measures for air quality, biological resources, hazardous materials, transportation, and utilities and services systems.  Cupertino Municipal Code Chapter 17.04, Standard Environmental Protection Requirements
– In 2019, Municipal Code codified 2015 GP EIR mitigation measures as environmental protection requirements for all construction projects.  2024 General Plan Policies and Strategies
– Policies and strategies updated to reflect current best management practices to ensure that future development continues to reduce impacts from construction and operation phases (e.g. Mobility Element) Environmental Assessment Conclusions
 Program-level significant and unavoidable impacts
for air quality, greenhouse gas emissions, and
transportation (vehicle miles traveled).
 Possible to have less-than-significant impacts in these areas for future projects that meet project-level
thresholds.
 No additional mitigation measures are available at
this phase of project approval (i.e. adoption of HE
and associated amendments)
Associated General Plan
Amendments

Other General Plan Amendments
 Chapter 3, Land Use and Community Design Element
and Appendix A, Land Use Designations:
 Text changes to address state law requirements &
Housing Element requirements
 Figure changes – reflect density and heights reqd. for developing Priority Housing Sites
 Chapter 5: Text changes to minimize environmental
impacts resulting from development
 General Plan Land Use Map – conforming changes
Planning Commission
Recommendation

Planning Commission Recommendation
 April 29, Planning Commission recommended adoption
of draft resolution on a 3-2 vote (Sharf and
Madhdhipatla: no) with minor change to remove a site
not allowed as a Priority Housing Site by HCD
 Missing middle strategy and parkland dedication fee
study discussed.

Timeline and Next Steps
April 2024
 Letter from
HCD – 4/10
 HC Study
Session – 4/25
 PC rec. – 4/29
Summer 2024
Fall 2024
June 2024
 First reading – 6/18
May 2024
 CC adoption
– 5/14
 PC rec. On
zoning – 5/28
Mar 2025
 Complete rezoning
 Prepare objective
design standards
 Adopt objective
design standards
 APR submitted

Ignore slides from here on out
HE Overview
 What is a Housing Element?
 State-mandated Element of City’s General Plan
 Why update it now?
 Required to be updated every 8 years by law
 Update it? How?
 Study and plan for housing needs in community
between 2023 & 2031, across all income levels
 Update by when?
 By Jan. 31, 2023 (deadline passed)

HE Overview
 6th Cycle Housing Element update covers
2023-2031 Planning Period
 Certification deadline: Jan. 31, 2023 (passed)
 Six jurisdictions in Santa Clara County (15
cities/1 county) still do not have compliant
Housing Elements
 38 of 109 ABAG jurisdictions not in compliance
 58 of 197 SCAG jurisdictions still out of compliance

R1 lots
adjacent to
commercial
could
develop with
R2 standards
~240 lots

R1 corner
lots that
could
develop
with R2
standards
~1,440 lots

R1 lots
adjacent to
commercial
& corner lots
that could
develop with
R2 standards
~1,680 lots

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
 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

Public Meetings
 Over 30 public meetings since Fall 2021
 Joint Study Sessions: HC/PC/CC - April/May 2021 (2
mtgs).
 Community meetings: May 2022-Sept 2023, (5mtgs)
 City Council: Sept 2021 – July 2023 (9 mtgs)
 Housing Commission: Dec 2021, Jun/Jul 2022 (3 mtgs)
 Planning Commission: Jan 2022 – Jul 2022 (6 mtgs)
 Community Engagement Plan – Strategic Advisory
Committee* – Mar 2022 – Oct 2022 (8 mtgs)
* Two councilmembers, HC Chair and PC Chair

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 - 35% particularly for lower income levels to
ensure city does not have to update sites
inventory before next HE update

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

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

Pipeline Projects
 Account for 2,452 units in Draft HE
 Likely 1,779 units will be “allowed” at
Vallco (west side only)
 Elimination of Hamptons (600 units) from
pipeline
 If developed by 2031, City still gets credit
for all built units

Upcoming HE Meetings
 April 16: City Council Study Session Overview and
Policy Discussion
 April 25: Housing Commission: Study Session
 April 29: Planning Commission meeting: PC
recommendation to Council
 May 14: City Council meeting Adopt HE, Amend GP
including Environmental Assessment, Rezone Priority
Housing Sites and related Code changes to
implement HE

AB2011
with HCD
size
criteria &
Aug 2022
sites

AB2011
with HCD
size
criteria
with
Housing
Priority
sites

Goals, Policies and Programs

Council Direction July 2023:
 In addition to refining site selection
strategy, directed priority for 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

Santa Clara County 6th RHNA Cycle

Sites -
August
2022

AB2011
with
HCD
size
criteria

Initial 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)

Second Draft HCD comments
 Received December 15, 2023
 Fewer comments and more specific in
nature
 Still asks for more analysis in a few areas,
particularly regarding sites’ development
potential within 6
th Cycle timeframe
 Some feedback on Sites Inventory, other
than pipeline

Recent informal comments
from HCD
 Strengthen Missing Middle Policies for Fair
Housing purposes (Strategy HE 1-3-6)
 Provide additional site analysis-Improvement
to Land Value and support for sites where
redevelopment is less certain
 Continue to streamline and promote
development of ADUs
 Take more proactive approach to ensure
housing is produced

Rezone Sites to Meet the RHNA

Map Detail 1

Map Detail 2

Map Detail 3

Revisions to address HCD comments
Review of Previous Housing Element
 More info in implementation of previous actions, including impact on housing for persons with special needs
Fair Housing Analysis
 Expanded discussion on trends, patterns, and data to further fair housing including displacement risk and fair housing sites analysis Housing Sites Inventory
 Revised site analysis including adding likelihood of development, realistic capacity, utility providers, small sites analysis, analysis re: ADUs to align with HCD accepted methodology
Housing Needs Assessment and Constraints
 Identified need to comply with State law for several housing types (SROs, shelters)  Expanded discussion regarding permit processing and how current land use controls are not a constraint and identify constraints such as housing for persons with disabilities, conversion-risk-estimate, and non-governmental related impacts Revisions to address HCD comments
Housing Strategies
 Revise rezone strategy to ensure compliance with State law and create new zoning and GP land uses to implement rezone. (Strategies 1.3.2, 1.3.3)
 Added strategies to encourage and facilitate:
 Mixed use development (Strategy 1.3.5)
 Development of non-vacant sites (Strategy 1.3.4)
 Development of affordable housing (Strategy 1.3.4, 1.3.5, 1.3.6,

1.3.7, 1.3.8, 1.3.10, 2.3.1, 2.3.2, 2.3.4, 2.3.6, 2.3.7, 2.3.10, 2.3.11, )  Development on small lots (<0.5 acres) (Strategy 1.3.7)  Development on Surplus Properties and Faith Based-Housing (Strategy 2.5.6)
 Live/Work Units (Strategy 2.3.12)

Revisions to address HCD comments
Housing Strategies
 Track Housing Production and complete a mid-term evaluation on production. (Strategy 1.3.12)
 Establish priority processing and granting fee waivers or deferrals for affordable housing developments. (Strategies 1.3.4, 1.3.5,

1.3.7, 1.3.8, 2.3.1, 2.3.9 2.3.11)
 Revise programs to AFFH including adding fair housing metrics, geographic targeting, actions to promote mobility and increase housing choices ((Strategies 6.1.1, 6.1.2, 6.1.3 and metrics to all strategies)
 Revised to establish incentives beyond ADU law and monitor affordability (Strategy 1.3.8).
 Study rent stabilization and tenant protection ordinances in California (Strategy 3.3.6)
Revisions to address HCD comments
Housing Strategies
 Added strategies to comply with State law concerning:
 Emergency Shelters (Strategy 5.1.1)
 Low Barrier Navigation Centers and Supportive Housing (Strategy

5.1.4)
 Residential Care Facilities (Strategy 5.1.5)
 Manufactured Homes (Strategy 5.1.6)
 Density Bonus (Strategy 2.3.8)
 Accessory Dwelling units (Strategy 1.3.8)
 Added actions to encourage missing middle housing
types (Strategy 1.3.6)
 including duplexes, triplexes, courtyard apartments
 Allowing corner lots in R1 to develop with R2 standards  Allowing R1 lots that abut property that fronts an arterial or major collector that is zoned and used for commercial or mixed-use development, to develop using R2 standards

Revisions to address HCD comments
Housing Strategies
 Review and revise development standards (Strategy 1.3.9)  Parking, setbacks, lot coverages, height limits, etc. in the new R-4 and PDA
 Explore innovative and family –friendly housing options (Strategy

1.3.10)
 Promote housing designs and unit mix to attract multigenerational households
 Research possibility of a Home Sharing program that would help to match “providers” with spare room(s) with “seekers” who are looking for affordable places to live.

Quantified Objectives
 Revised objectives for housing rehabilitation and conservation and to address fair housing.

Consistency with General Plan
 Added a program to review for consistency throughout planning period.

Significant and Unavoidable
 The General Plan meets regional goals, objectives, and best management practices for reducing environmental
impacts.
 Program-level significant and unavoidable impacts were determined for air quality, greenhouse gas emissions,
and transportation (vehicle miles traveled).
 Program-level significant and unavoidable impacts are based on:
 Unknown project-specific details of future proposed
development projects
 Consistency with regional plans that have yet to be
updated
 Human behavior
Direction Pre-HE submittal
 More interest in accommodating housing west of
De Anza Blvd and south of Highway 85
 Less interest in accommodating housing east of De
Anza Blvd due to recent approvals
 Locate housing sites to counteract declining school
enrollment
 Avoid displacement of existing residents through
redevelopment of residential properties

Affirmatively Furthering Fair Housing (AFFH)
- Cupertino
 City is designated High or Highest Resource
regarding Access to Opportunities
 Housing anywhere in City would regionally
Affirmatively Further Fair Housing
 City must look to accommodate persons who
currently do not reside here
 Meeting RHNA alone does not equate to
satisfying AFFH (Missing Middle Strategy)

CC 05-14-2024

Fiscal Year 2024-25 Fee
Schedule

Presentation
May 14, 2024
FY 2024-25 Fee Schedule Update
& Cost Recovery Policy
• Background
• What is a Fee?
• Fee Study
• Fee Rates
• New Fees & Other Changes
• Fiscal Impact
• User Fee Cost Recovery Policy
• Staff Recommendation
Agenda
A fee or rate charged to an individual or
group that receives a private benefit from
services provided by the City.

Background - What is a Fee?
2016 & 2023 Fee Studies
Cost Allocation Plan
Cost of Services
• Sets the cap on city-provided services
Background – Fee Study
Background - Fees for City Services
Fee Schedule Description
Schedule A - General Fees Miscellaneous fees not associated with one department(abatement fees, false alarms,
PRA request, etc.)
Schedule B - Engineering Fees Public Works – Engineering:

Design and Inspection Services
Schedule C - Planning Fees Community Development – Planning:

Current, Mid, and Long-Term Planning
Schedule D - Building Fees Community Development – Building:

General Building, Construction Plan Check,
and Building Code Enforcement
Schedule E - Parks & Recreation Fees Parks & Recreation Services Fees are market driven
New Fees & Other Changes
Credit Card Transaction Fee
• 3.4% of transaction
Technology Use Fee
• 5.8% of permit costs
Citywide Fees
Schedule A – General Fees
Restructured Fees
• Code Enforcement Fees
New Fees
• Crane Lift Encroachment Permits
• Planning Application Fee
• Environmental Programs Plan Review
• VMT Monitoring Fee
Schedule B – Engineering Fees
New Fees
• Project Review Meeting
• Preliminary Application Reviews
• Planning Inspections
• Special Events
• Sign Permits
• Mercury News Ads
Schedule C – Planning Fees
New Fees
• Larger Additions
• Solar Thermal Systems
• Accessory Buildings (sheds)
Restructured
• Plan Review & Inspection Fee Table
• MEP Fee
Schedule D – Building Fees
Fiscal Impact
Fee Schedule Estimated Additional
Revenue Factor and Basis
Schedule A – General Fees Nominal amount Cost-recovery plus

2.4% CPI
Schedule B – Engineering Fees $60,829
Cost-recovery plus

0.7% CCI,

1.0% Labor
Schedule C – Planning Fees $171,191
Cost-recovery plus

0.7% CPI,

1.0% Labor
Schedule D – Building Fees $542,659 Cost-recovery plus

1.0% Labor
Incorporated Elements
• Cost Allocation Plan and User Fee Study
Cycle
• Annual update mechanism
• Phase-in period
• Target Cost Recovery Ranges
User Fee Cost Recovery Policy
Cost Recovery Range
User Fee Cost Recovery Policy
Schedule/Service Area
Target Cost
Recovery Range
Schedule A – General 100%
Schedule B – Engineering (PW) 75-100%
Schedule C – Building 80-100%
Schedule D – Planning 50-80%
Schedule E – Recreation* Market-driven
Staff Recommendation
Adopt Resolution approving FY 2024 ‐25 Fee
Schedules effective July 14 , 2024,
and User Fee Cost Recovery Policy

Cupertino City CouncilMay 14, 2024

Cupertino City Council
May 14, 2024