CC 2-03-2026
8 Mary Ave VillasProject
Presentation
Architectural & Site Approval, Property Exempt
Surplus Land Declaration, and Disposition and
Development Agreement
Mary Avenue Villas Project
Michelle Hernandez
Deputy City Attorney
Gian Martire
Senior Planner
Subject
Consideration of (i) an Architectural and SiteApproval permit, (ii) adoption of a Notice of Exempt SurplusLand Act Declaration, and iii) a Dispositionand Development Agreement by and between the City of Cupertino, a municipal corporation and Mary Avenue, L.P., a California limited partnership in connection with the development of a 40-unit below market rate development ( Mary Avenue Villas Project) on a Housing Element Site, of which 19 units are dedicated to the Intellectually Developmentally Disabled and 21 units reserved for extremely low, very low, and low income residents of the community, located on public property.
Background
FY2020-21, the City Work Program prioritized engaging with philanthropic organizations to develop extremely low-income housing (ELI) for the intellectually and developmentally disabled IDD) community.
TheFY2021-22 City Work Program narrowed down to excess
City-owned property within the Mary Avenue right-of-way.
Since 2022, City has been working with Charities Housing to develop this site in accordance with the City Work Program.
July 2024 -PriorityHousing Site (HESite10) and amended the General Plan Land Usedesignation of the property to High/Very High Density (50-65 dwelling units per acre).
Charities Housing submitted its development application ( ASA- 2025-006) for the 100% affordable housing project on April 3, 2025.
Project Description
40-unit 100% affordable special needs
housing project
At least 45% of units for Intellectually
Developmentally Disabled population
Affordability: 30–60% AMI
Two, two- story buildings with a 22-parking
stallsonsite.
Net lot area -. 76 acres
Project Description
Project Description
Project Description
Right-of-way modifications necessary
with net lossof 89 parking spaces.
Parking on westside of Mary Ave. parallel.
Parking on eastside of Mary Ave. removed.
Vehicle travel lanes 11-feet in width.
Maintaining bicycle lanes in both direction,
and adding a sidewalk on westside of Mary
Ave.
Project Description
Architecture and SiteDesign
General PlanCompliance
Housing Element identifies site as Priority
Housing Site
Housing Element has Policies & Strategies
that encourage housing for low income and
special needs communities:
HE-2.3 - Development of Affordable Housing and
Housing for Personswith Special Needs.
HE-2.3.1 - Support Affordable Housing Development
HE-2.3.10 - Extremely Low-income Housing
HE-2.3.11- Assistance ForPersonswith Developmental
Disabilities
DensityBonus
Statutory Parking Reduction.
Waivers
Reduction of front, side, and rear setbacks.
Private outdoor space.
Vehicles in front and side setback.
Bicycle parking ( ClassI)
Concessions
Alternative to Electric Vehicle Charging
requirement.
Removal of private artwork onsite or in-lieu.
Number
of Units
Parking Spaces under State Density BonusLaw Parking Spaces Provided 40 12 22
Legal: Right-of-Way Vacation Process
Non-summary vacation of right-of-way
required prior to transfer of title
Planning Commission reviews
conformity( within 40 days of submission)
February 10, 2026
Council hearing after 15-day notice period
March 3, 2026
If Council adopts the resolution, it will be
recorded to complete the vacation
Legal: SurplusLandAct Compliance
Property must be declared " surplus"or“
exempt surplus"
Project has been structured to meet the
exemption criteria under Gov. Code
54221(f)(1)(F)(i-ii) - for a housing
development which restricts 100% of the
residential units to households of low or
moderate income
Notice to HCD required 30+ days before
disposition
Legal: City Financing
The City shall provide the following financial
assistance:
Selling the property for $1.00;
BMRLoan of $3,000,000;
CDBG Grant of $174,567.37;
PLHAloan of $908,683; and
Waiver of Park Development Feesin the
amount of $2,160,000.
Legal: RegulatoryAgreement
99-year term
Eligibility limited to low, very low, or
extremely low income households; 19 units
limited to IDD households
Priority to tenants qualified through City's
BMRprogram
Developer isrequired to provide ongoing
evidence of compliance
Tenants receive notice of upcoming
expiration at least 3-years in advance
Legal: Option to Reacquire
City has the option ( but not the obligation)
to reacquire the Property upon expiration
of the Regulatory Agreement
Reacquisition price isequivalent to fair
market value of the improvements at the
time of reacquisition
Upon notice from developer, City will
receive 12-months to exercise option
EnvironmentalReview
California Government Code § 65583.2(i) and City Code Section
19.12.030, the proposed entitlement is not considered a "project" subject to CEQA. The development meets all statutory
requirements for this exemption, specifically regarding its location on a Housing Element site, its programming as a 100%
affordable status, and it’s with a density of over 20 dwelling units per acre.
The proposed DDA is not a development project, however, it would facilitate the construction and operation of a future 100% affordable housing development ( future development) in Cupertino that is exempt from CEQA. The proposed DDA project qualifies for an exemption under State CEQA Guidelines Section 15332 (Class 32: Infill Development Projects) and, as a result, would not have a significant effect on the environment.
Find the project exempt from the California
Environmental Quality Act ( CEQA)
Adopt Resolution No. 26-___ approving Architectural
Site Approval Permit (ASA-2025-006);
Adopt Resolution No. 26-___ declaring the Property
Exempt SurplusLand pursuant to the SurplusLand
Act Adopt Resolution No. 26-___ approving the
Disposition and Development Agreement
Recommended Actions