ORDINANCE NO. __________________
AN INTERIM URGENCY ORDINANCE OF THE CITY OF CUPERTINO, CALIFORNIA, ENACTED PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 65858 ESTABLISHING A 45-DAY TEMPORARY MORATORIUM ON THE TRANSITION OF MULTIPLE-FAMILY USE HOUSING TO STUDENT HOUSING WITHIN A ONE HALF MILE RADIUS OF FOOTHILL-DE ANZA COMMUNITY COLLEGE IN THE CITY OF CUPERTINO DURING THE PENDENCY OF THE CITY’S REVIEW AND ADOPTION OF PERMANENT ZONING REGULATIONS FOR SUCH USES The City Council of the City of Cupertino finds that:
WHEREAS, the City of Cupertino (“City”) has the authority, under its police power, to enact regulations for the public peace, morals, and welfare of the City pursuant to its California Constitution Article XI, section 7; and WHEREAS, pursuant to City of Cupertino Municipal Code section 19.04.020, the City has the authority to establish comprehensive zoning regulations to create a convenient, attractive, and harmonious community, and is responsible for adopting and implementing land use regulations within its boundaries; and WHEREAS, the City has been informed that the Foothill-De Anza Community College District (“District”) is currently under contract to purchase McClellan Terrace Apartments (“McClellan Terrace”), a multiple-family use residential building that houses approximately ninety-four (94) families, with the intent to convert the property from multiple-family use housing to student housing, as defined below, and the closing of that transaction, with title transfer could occur at any time; and WHEREAS, if the sale of McClellan Terrace closes and the District takes title to the apartment community, the District has stated that it will transition the apartment community to some form of student housing, as defined below, whereby current tenants will be displaced, such that tenants holding 12-month lease agreements will be forced to vacate their apartment homes upon the expiration of their leases, and tenants on month-to-month leases will be forced to vacate when their lease is up, but not earlier than 120 days from the date of the notice to vacate; and WHEREAS, at the April 2, 2025 City Council meeting, tenants residing at McClellan Terrace, as well as many other community members expressed great concern about the displacement of 94 families, including approximately 60 school-age children and youth, highlighting the potential for significant community disruption and hardship; and WHEREAS, many if not all of the school-age children and youth to be displaced by this forced transfer from their home at McClellan Terrance attend the nearby schools of Lincoln Elementary School, Kennedy Middle School, and Monta Vista High School, all high-performing schools; and WHEREAS, the current threat of displacing residents at McClellan Terrace raises broader concerns regarding further loss of multiple-family use housing and potential displacement of renters within the City, and demonstrates the need for further studies evaluating the adoption of regulations prohibiting such conversions to student housing; and WHEREAS, the City has long recognized the importance of protecting families and other residents from displacement, as reflected in the goals and policies of the City’s General Plan, which emphasizes that “new housing sites should avoid or minimize displacement of existing uses, particularly existing residential uses that would necessitate the relocation of residents,” with displacement being a significant concern, particularly for low- and moderate-income residents, and causing the loss of both homes and critical community support networks; and WHEREAS, the City has previously adopted regulations in Cupertino Municipal Code Chapter 19.116 to address the harms associated with the conversions of multiple-family use housing by prohibiting most conversions of apartment projects to common interest developments, unless and until it can reasonably be demonstrated that comparable replacement housing exists within the housing market area within a similar price range (CMC section 19.116.030 (A)(1)(a).); and WHEREAS, the Cupertino Municipal Code Chapter 19.116 further forbids such conversions when “the vacancy rate for apartment houses within the housing market area is less than five percent at the time at the time of application and has averaged five percent over the past six months…” (CMC section 19.116.030 (A)(1)(e).); and WHEREAS, the City has a compelling interest in protecting the public health, safety, and welfare of its citizens, residents, visitors and businesses, and in preserving housing, including multiple-family rental housing within the City by regulating the transition of multiple-family use housing to student housing, and thereby preventing the loss of multiple-family housing within City limits and preventing displacement of City residents; and WHEREAS, today the City has no standards or regulations applicable to the transition of multiple-family housing to student housing and the impacts of such on the welfare of the City’s citizens, residents, visitors and businesses; and WHEREAS, the City’s permissive regulatory environment towards the transition of multiple-family housing to student housing will: 1) result in the loss of essential housing, including rental housing, for families and others within the City, 2) displace current tenants, including families and families with school-age children and youth currently enrolled in local public schools, 3) disrupt established relationships between and among families and friends residing in the multiple-family use building or nearby residences who may be unable to find alternate housing within the neighborhood, school district or even within the City, 4) encourage the loss of multiple-family use housing in favor of student housing, 5) potentially increase the commute distance to and from work for tenants displaced by student housing potentially increasing Greenhouse Gas emissions; and 6) reduce the incentive for institutions of higher learning to build new student housing to accommodate the needs of the institutions’ students for local housing; and WHEREAS, the City encourages institutions of higher education located within or near its boundaries to prioritize the development of new on-campus student housing to meet the growing demand for student accommodation; and WHEREAS, the transfer of McClellan Terrace to the District, a public entity, along with the transition to student housing, will have substantial negative financial consequences for the City because the new owner, the District—a public entity—is exempt from paying assessed property tax, yet at the same time the population of McCellan Terrace will increase substantially with the new student housing use, resulting in greater use of City services at a greater cost to the City; and WHEREAS, the City is committed to prioritizing the development of new housing, including student housing, rather than permitting the conversion of existing multifamily housing to student housing; and WHEREAS, the City’s failure to protect multiple-family use housing for families and others within the City could add to the shortage of permanent housing options within the City, impacting the City’s population; and WHEREAS, the rental housing market is tight, with low vacancy rates in the greater Santa Clara Valley region, including the City. The Department of Housing and Urban Development issued a regional report finding vacancy rates at 4% in 2020; and WHEREAS, absent clear regulation, the transition of multiple-family housing to student housing within the City poses a threat to the public peace, health, and safety, and unless the City takes regulatory action to curtail such transition, the impacts described above are likely to occur; and WHEREAS, the City Council further finds and determines that permitting the transition of multiple-family use housing to student housing would have a current, immediate and specific adverse impact on public health and safety that cannot be mitigated within the meaning of Government Code Section 65858(c) and/or (h); and WHEREAS, California Government Code sections 36934, 36937 and 65858 expressly authorize the City Council to adopt an interim urgency ordinance for the immediate preservation of the public peace, health or safety and to prohibit a use that is in conflict with a contemplated General Plan, specific plan, or zoning proposal that the City, its Planning Commission or the Community Development Department is considering or studying or intends to study within a reasonable time; and WHEREAS, the City is aware of other cities in the area and region that have developed ordinances to manage or eliminate the transition of multiple-family use housing to student housing, which could be good models for the City and City staff to study, but the City and City staff need time to study these ordinances and issues and develop appropriate regulations consistent with the City’s unique needs, as well as State and federal law; and WHEREAS, pursuant to the above-described express statutory authority and its police power, the City Council desires, on an urgency basis, to temporarily prohibit the transition of multiple-family use housing to student housing within a one half mile radius of Foothill-De Anza Community College in the City of Cupertino; and WHEREAS, on May 6, 2025, the City Council conducted a public hearing, which was noticed on April 25, 2025; and WHEREAS, pursuant to the above-described express authority and its police power, the City Council desires, on an urgency basis, to temporarily prohibit the transition of the multiple-family use housing to student housing within a one half mile radius of Foothill-De Anza Community College in the City of Cupertino.
NOW, THEREFORE, The CITY COUNCIL OF THE of city of CUPERTINO DOES ordain as follows:
SECTION 1. Recitals.
The City Council finds and determines that the foregoing recitals are true and correct and incorporates the same herein as if set forth in full.
SECTION 2: Findings.
The City Council finds as follows:
A. There exists a current and immediate threat to the public health, safety, or welfare, such that this interim urgency ordinance is necessary to mitigate or avoid the specific, adverse impacts identified in the foregoing recitals incorporated herein, and as follows, such that there is no feasible alternative to satisfactorily mitigate or avoid the identified specific, adverse impacts with a less burdensome or restrictive effect, than the adoption of this proposed interim urgency ordinance.
B. Government Code section 65580 states: “[t]he availability of housing is of vital statewide importance, and the early attainment of decent housing and a suitable living environment for every Californian, including farmworkers, is a priority of the highest order.” California is experiencing a housing supply crisis, with housing demand far outstripping supply. In 2018, California ranked 49th out of the 50 states in housing per capita. This lack of housing supply in California has led to dramatically increasing housing costs across the State.
C. Rent in the City of Cupertino is significantly higher than in most communities and according to Zillow is 81% higher than the national average. Renters make up 40% of all households in the City. (See Cupertino General Plan, Housing Element, p. H-6.) As of April 24, 2025, 103 total units were listed for rent on Zillow for the entire City. Of these, only 70 multiple-family units were available, ranging from $1,300/month to $6,810/month. With a population in the City of over 57,000 people, this means that a single multiple-family unit is only available for every 770 members of the community (less than 0.05%). In addition, land, environmental, and infrastructure constraints combine to keep land prices high. Although the City of Cupertino is doing what it can to facilitate the development of new multiple-family housing, it also must take steps to preserve existing multiple-family housing.
D. Providing for a diverse range of housing types is an important consideration in a community. A diverse range of housing types helps ensure that all households in a community, regardless of income level, size, age, and family type, have the ability to find adequate housing that meets their needs, including K-12 schools for children and youths. This is consistent with the City’s housing element goals of conserving housing stock and preserving multifamily housing in the City. (See Cupertino General Plan, Housing Element Goal HE-3, Stable and physically sound residential neighborhoods, and Strategy HE-3.3.4, Multifamily Housing preservation Program.) E. The need to preserve existing multiple-family housing is especially acute due to the limited availability of other housing types. For example, according to Redfin.com the median sale price of a home in Cupertino was $2,493,950 last month. This places home ownership out of reach for many members of the community, resulting in a greater need for safe and affordable multiple-family rental housing. According to the California Department of Finance E-5 Report, 2024, the City’s housing unit vacancy rate in 2024 was 5%. Comparing that to the statewide housing unit vacancy rate of 6.4% demonstrating that housing choice is quite limited in Cupertino.
F. Cupertino needs to retain its multiple-family housing. The conversion of existing multi-family housing to student housing and similar uses is inextricably intertwined with the loss of multi-family uses and the risk of displacement. The loss of multi-family housing increases rents, forces families to pay a disproportionate amount of household income on rent, and creates a strain on household finances. It also increases the likelihood that households will be forced to move out of the area if such housing stock is converted to other uses. If households are forced to move out due to increased rents or unavailability of units, this can lead to loss of community, stress and anxiety for those forced to relocate, increased commute times and traffic impacts if displaced workers cannot find affordable housing within the City, and the interruption of the education of children and youths in the home.
G. A lack of affordable multi-family housing supply and rising rents additionally increase the risk that more households will become homeless and add further barriers that prevent homeless individuals and families from finding permanent housing.
H. When people have access to safe and affordable housing, they have more resources for food and health care, are less likely to need government subsidized services, their children do better in school, and businesses have an easier time recruiting and retaining employees.
SECTION 3: Moratorium.
During the effective period of this interim urgency ordinance, the conversion of multiple-family use to student housing within a one half mile radius of Foothill-De Anza Community College in the City of Cupertino is prohibited. Section 19.08 (M) of the Cupertino Municipal Code defines “multiple-family use” as the “use of a parcel for three or more dwelling units which may be in the same building or in separate buildings on the same parcel.” “Student Housing” here is defined as a living space for students of accredited post-secondary educational institutions that may take the form of dwelling units, group housing, or single room occupancy Units that are owned, operated, or otherwise controlled by one or more accredited post-secondary educational institutions.
Student Housing includes:
a. Student Apartments – Off-campus or on-campus apartments with multiple bedrooms, often rented by groups of students. These units may include shared living spaces such as kitchens and bathrooms; and b. Fraternity or Sorority Houses – Private, Greek-letter organization-owned homes that houses members of fraternities or sororities, often located near campuses and usually containing a mix of residential and social spaces; and c. Graduate Student Housing – Residential spaces designed specifically for graduate students, which may be more private or include family-friendly units, located on or near the campus; and d. Off-Campus Housing – Residential accommodations rented by students living independently from the university. This includes houses, apartments, condos, or shared living spaces, often located near the university; and e. Single Room Occupancy Units – A form of housing that provides students with individual rooms, often with shared common areas like kitchens and bathrooms. These may be located on or near campus or in surrounding neighborhoods; and f. University-Owned Apartments for Families – Apartments provided by universities for students with families. These units typically offer more space and family-friendly amenities and may be located off-campus or within university housing complexes; and g. International Student Housing – Specialized housing for international students who require specific accommodations, potentially including language support, cultural programs, or more integrated living spaces.
SECTION 4: Review and Study.
During the period of this interim urgency ordinance, the City shall study and develop as necessary City laws, rules, procedures and fees related to the use of student housing and multiple-family units, to enable the City to adequately and appropriately preserve the health, safety and welfare of the community in the City of Cupertino. Pursuant to Government Code Section 65858, the Director of Planning will issue a report for the legislative body on what has been accomplished during the moratorium period before it is extended.
SECTION 5. Urgency Measure.
This interim urgency ordinance is needed for the preservation of the public health, safety, and general welfare, as among others, it will allow the City time to study how to avoid and prevent potential conflicts between multiple-family use housing and student housing uses resulting from insufficient buffers between such uses, as well as additional impacts identified in the recitals.
SECTION 6. Urgency Measure.
This interim urgency Ordinance is not a project under the requirements of the California Environmental Quality Act, together with related State CEQA Guidelines (collectively, “CEQA”) because it has no potential for resulting in physical change in the environment. In the event that this interim urgency Ordinance is found to be a project under CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility that the action approved may have a significant effect on the environment. CEQA applies only to actions which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. In this circumstance, the proposed interim urgency ordinance would have no or only a de minimis effect on the environment because it preserves existing conditions, and is therefore exempt from CEQA review. The foregoing determination is made by the City Council in its independent judgment.
SECTION 7. Authority and Effect.
This interim urgency ordinance is enacted pursuant to the authority conferred upon the City Council by California Government Code section 65858 and take full force and effect immediately upon its adoption by a four-fifths (4/5) vote of the entire City Council as if, and to the same extent that, such interim urgency Ordinance had been adopted pursuant to each of the individual sections set forth herein above.
SECTION 8. Effectiveness of Ordinance.
This interim urgency ordinance shall take effect immediately upon its adoption by a 4/5 vote, pursuant to the authority conferred upon the City Council by California Government Code section 65858. This interim urgency ordinance shall be of no further force and effect forty-five (45) days following the date of its adoption unless extended in accordance with the provisions set forth in California Government Code section 65858. Not later than ten (10) days prior to the expiration of this interim urgency ordinance, the City Council shall issue a written report as required by California Government Code section 65858(d).
SECTION 9. Severability.
If any provision of this interim urgency ordinance or the application thereof to any persons or circumstances is held invalid, such invalidity shall not affect other provisions or applications of this interim urgency ordinance, which can be given effect without the invalid provision or application and to this end the provisions of this interim urgency ordinance are hereby declared to be severable.
SECTION 10. Publication.
The City Clerk shall give notice of adoption of this Ordinance as required by law. Pursuant to Government Code Section 36933, a summary of this Ordinance may be prepared by the City Clerk and published in lieu of publication of the entire text. The City Clerk shall post in the office of the City Clerk a certified copy of the full text of the Ordinance listing the names of the City Council members voting for and against the ordinance.
INTRODUCED at a regular meeting of the Cupertino City Council on May 6, 2025 and ENACTED at a regular of the Cupertino City Council on this _______ day of ________, 2025 by the following vote:
Members of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
SIGNED:
______________________
Liang Chao, Mayor
City of Cupertino
________________________
Date
ATTEST:
_______________________
Kirsten Squarcia, City Clerk
________________________
Date
APPROVED AS TO FORM:
_______________________
Floy Andrews, City Attorney
________________________
Date
2 [Brief Description]- Page 1
Attachment A – Page 2
Ordinance No. __________