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DATE: February 2, 2026
TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager
FROM: Sofia Mangalam, Community Development Director
Nori Jabba, Housing and Sustainability Manager
DEPARTMENT: Community Development
SUBJECT: IMPLEMENTATION OF HOUSING ELEMENT PROGRAMS:
SUPPORTIVE HOUSING IN THE CITY’S EXISTING UNIT
PURCHASE PROGRAM (EUPP) UNITS
RECOMMENDATION
It is recommended that the City Council, via Minute Order, accept the report and confirm staff’s approach regarding supportive housing at the City-owned Existing Unit Purchase Program (EUPP) units as part of the implementation of two (2) Housing Element programs.
EXECUTIVE SUMMARY
The adopted Housing Element for planning period 2023-31 contains two (2) programs specific to supportive housing. The first program (H-E-1-a) is to implement tenant preferences for the City-owned EUPP units so that when vacancies occur, housing providers have an opportunity to propose renting the unit to provide supportive housing.
The second program (H-F-1) is to provide facilities and services for those with special needs.
Recently, one (1) of the six (6) City-owned EUPP units became vacant, providing an opportunity to begin transitioning it for use as supportive housing.
Generally speaking, there is a broad range of population groups that meet the definition of supportive housing and special needs. The City’s definition for supportive housing is
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specified in the City’s Municipal Code, Chapter 17.04.020 and special needs groups are included in the Housing Element Program H-F-1 (see definitions below in the Background section of this report). These groups were identified as a result of the Housing Needs Assessment (Housing Element 2023-2031, Appendix A) prepared during the Housing Element preparation.
Transitioning the current vacant EUPP unit to supportive housing to meet those specific special needs groups fulfills the goals of two (2) Housing Element programs. The City currently does not own any supportive or special needs housing. However, it should be noted that senior housing is considered special needs housing, and the City regulates two (2) senior housing properties through the Below Market Rate (BMR) Rental Housing program: Metro Center Senior Apartments and Alma Point Senior Apartments.
Based on Council affirmation of staff’s approach to implementing the Housing Element Programs, staff will prepare and issue Request for Proposals (RFP) for the supportive housing/special needs providers and for the transition of the vacant EUPP unit.
Additionally, the vacant unit needs interior and exterior painting, as well as various upgrades and improvements, due to wear and tear associated with prior long-term occupancy.
Subsequently, staff will return to the City Council for approval of the supportive housing service provider and general contractor, and of budget appropriations associated with the contract execution with the supportive/special needs housing provider and the costs associated with rehabilitation of the unit.
BACKGROUND
The Housing Element is an integral part of the Foster City General Plan that identifies the community’s housing needs, states the community’s goals and objectives regarding housing production, rehabilitation, preservation, and conservation to meet those needs, and defines the policies and programs. The chapter containing Housing Goals, Policies, and Programs forms the housing policy roadmap for the City and describes the implementation measures that the City needs to undertake in the planning period 2023-
31. The two (2) programs relevant to this staff report are as follows:
1. Program H-E-1-a Existing Unit Purchase Program-Opportunities for Supportive Housing: Implement the tenant preferences adopted in January 2023 for the Existing Unit Purchase Program (City-owned units) so that when vacancies occur, housing providers have an opportunity to propose renting the unit to provide supportive housing for people with disabilities and if no acceptable proposals are received, then continue to maintain the existing units owned by the City as rentals for large very low- and low-income families.
Responsible Agency: Community Development Department, City Council Timeframe: As vacancies occur
Quantified Objectives: One (1) unit converted to supportive housing by 2031
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Performance Metric(s): Number of units converted to supportive housing Funding Source: Affordable Housing Fund
2. H-F-1 Special Needs. Encourage a mix of housing units throughout the City including those for lower-income seniors, veterans, families with children, single parents, young families, victims of domestic violence, farmworkers, and the disabled.
H-F-1-a Facilities and Services for Special Needs. Support housing that incorporates facilities and services to meet the health care, transit or social service needs of households with special needs, including seniors, extremely low-income households and persons, farmworkers, people with developmental disabilities, and persons with disabilities through an expedited permit review process.
Proactively contact non-profit service providers and developers for persons with disabilities and other special needs groups on annual basis to inquire about their needs and notify them about funding opportunities, as they become available. Responsible Agency: Community Development Department
Timeframe: Establish expedited permit review process and begin annual proactive outreach by December 2023
Performance Metric(s): Facilitate development of at least one (1) new facility
The Housing Element Programs include the City’s commitment to timeframes for implementation. The Annual Progress Report to the California Department of Housing and Community Development (HCD), due by April 1 of each year, reports on progress in implementation of these Programs. It should be noted that the City did establish the expedited permit review process and began annual proactive outreach in 2023 as called for in the Timeframe for Program H-F-1.
What is supportive housing?
The City’s Municipal Code, Chapter 17.04.020, defines supportive housing as follows:
“Supportive housing” means housing with no limit on length of stay, that is occupied by the target population as defined in Section 65582 of the California Government Code, and that is linked to on- or off-site services that assist the supportive housing residents in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community.
Target population, as defined in Section 65582 (p) as follows:
“Target population” means persons with low incomes who have one or more disabilities, including mental illness, HIV or AIDS, substance abuse, or other chronic health condition, or individuals eligible for services provided 1 0
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pursuant to the Lanterman Developmental Disabilities Services Act (Division 4.5 (commencing with Section 4500) of the Welfare and Institutions Code) and may include, among other populations, adults, emancipated minors, families with children, elderly persons, young adults aging out of the foster care system, individuals exiting from institutional settings, veterans, and homeless people.
In other words, supportive housing is a category of affordable housing that is broadly defined as permanent housing (as opposed to temporary or transitional housing) that includes access to support services to help at-risk community members, such as those with disabilities, health issues, or those experiencing chronic housing insecurity risk factors. Population groups for supportive housing include, but are not limited to:
Adults
Emancipated minors
Families with children
Elderly persons
Young adults aging out of the foster care system
Individuals exiting institutional settings
Veterans
Homeless people
Special Needs Housing
As part of the Housing Element 2023-31 process, the City conducted a Housing Needs Assessment. The Assessment examined demographics, employment, and housing trends and conditions that affect housing needs and informed the various programs included in the Housing Element.
The Assessment as included in the Housing Element has identified special housing needs, noting that some population groups may require specific program responses and may experience barriers to accessing stable housing due to their specific housing circumstances. This includes:
Large Households
Female-headed households
Seniors
People with disabilities
Homelessness
Farmworkers
Non-English speakers
In Foster City, 7.1% of residents have a disability of any kind and may require accessible housing. Additionally, 6.2% of Foster City households are larger households with five or more people, who likely need larger housing units with three bedrooms or more. 7.9% of households are female-headed families, which are often at greater risk of housing insecurity.
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Furthermore, the housing needs assessment elaborates on how people with disabilities face additional challenges, including displacement, ineligibility for many affordable rental units, overpayment of rent, disability bias, and transit dependency. The assessment then lists various Housing Element programs to address the needs of people with disabilities.
Similar to supportive housing, housing for special needs, as outlined in Housing Element Program H-F-1, includes housing for lower-income seniors, veterans, families with children, single parents, young families, victims of domestic violence, farmworkers, and the disabled that incorporates facilities and services to meet the health care, transit or social service needs of households with special needs.
ANALYSIS
On January 9, 2023, the City Council adopted City Resolution No. 2023-3 and adjusted the preferences for selection of tenants for the EUPP units to add as the first preference category, “a non-profit housing provider that will operate the unit for persons requiring supportive housing (as defined by FCMC Section 17.04.544).” Preferences 2 through 13 have been in place for over 20 years. Table 1 shows the preferences for the EUPP units.
Table 1. City of Foster City Preference Categories for City-Owned Duplexes and Single-Family Rental Homes (City Resolution No. 2023-3) Preference Description
1 A non-profit supportive housing provider that will operate the unit for persons requiring supportive housing (as defined by FCMC Section 17.04.544) 2 Very low-income tenants (as defined in California Health and Safety Code Section 50105) living and working in Foster City
3 Low-income tenants (as defined in California Health and Safety Code Section 50079.5) living and working in Foster City
4 Very low-income tenants (as defined in California Health and Safety Code Section 50105) living in Foster City
5 Low-income tenants (as defined in California Health and Safety Code Section 50079.5) living in Foster City
6 Very low-income tenants (as defined in California Health and Safety Code Section 50105) who are employees of the City of Foster City 7 Low-income tenants (as defined in California Health and Safety Code Section 50079.5) who are employees of the City of Foster City
8 Very low-income tenants (as defined in California Health and Safety Code Section 50105) who are classroom teachers employed by the San Mateo- Foster City School District, the San Mateo Union High School District, or the San Mateo County Community College District
9 Low-income tenants (as defined in California Health and Safety Code Section 50079.5) who are classroom teachers employed by the San Mateo-Foster City School District, the San Mateo Union High School District or the San Mateo County Community College District
10 Very low-income tenants (as defined in California Health and Safety Code Section 50105) who work in Foster City
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11 Low-income tenants (as defined in California Health and Safety Code Section 50079.5) who work in Foster City
12 Very low-income tenants (as defined by California Health and Safety Code Section 50105) – all others who are income qualified
13 Low-income tenants (as defined by California Health and Safety Code Section 50 as defined by California Health and Safety Code Section 50079.5) As stated in Housing Element Program H-E-1-a, in the event that no eligible proposals are received for supportive housing, the EUPP unit will be filled in preference order as listed above by the contracted property management firm.
Consideration for Supportive Housing
The City’s six (6) EUPP units, comprising of two (2) single-family homes (a three- bedroom unit and a five-bedroom unit) and four (4) duplex units (two and three-bedroom units) located in residential neighborhoods with limited access to transit and amenities.
Recently, one (1) of the EUPP units, a three-bedroom, single-family home, became vacant, presenting an opportunity to begin transitioning that EUPP unit for use as supportive housing geared to households in which occupants needing supportive services can live independently or with help from family or other household members and with off-site services (which could include coordination of in-home care providers such as In-Home Supportive Services (IHSS) Program workers).
Supportive housing for individuals needing extensive on-site services is not feasible for the EUPP units, as there is limited space for support functions. Thus, the City will need to enter into an agreement with an off-site service provider, a service provider that coordinates in-home services, or a service provider that could provide onsite services with the addition of an ADU on the property. Some of the considerations include:
a) Entering into an agreement with an agency that provides housing and support services for those with special needs. Services might include case management, counseling, coordination of care, training, etc. and would be provided in a dispersed, off-site environment. The Agreement would need to specify that the housing is for those with disabilities that meet the definition of supportive and special needs housing. Examples of possible agencies include CORA, Housing Choices, San Mateo County Housing Authority (Section 8 Program), HIP Housing’s Self-Sufficiency Program.
b) Entering into an agreement with an agency that provides housing for those with developmental disabilities in a group home setting with services provided both on and off-site or coordinated care services to those with developmental disabilities living in their own homes. Examples of possible agencies include Kainos Home and Training Center, PARCA, FHAR. FHAR, for example provides independent living training and supported living services to individuals who reside in their own home and/or apartment through their Community Outreach Program. FHAR also provides support services to individuals residing with their families. This option 1 0
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may require the addition of an ADU on site to help provide space for services or care coordination.
c) Entering into an agreement with an agency that provides supportive services and can refer eligible households for housing. Services would be provided in an off- site location or coordinated off-site for in-home care services. The agency would refer eligible households in need of housing to the City’s contracted property management firm that manages the EUPP units. The property management firm would create a waitlist to fill the units. The contracted agency would ensure that referred households meet the City’s eligibility criteria for disabilities, supportive services, and target population(s). The contracted property management firm would also verify income eligibility. Examples of agencies include: San Mateo County Health Association, CASA of San Mateo County, San Mateo County Human Services Agency, San Mateo County Health Department (In-Home Supportive Services Program), HIP Housing’s Self-Sufficiency Program.
Due to the nexus between the two (2) programs noted above, transition of the recently vacant EUPP unit for supportive housing to cater to certain special needs groups will also fulfil program H-F-1-a.
In order to meet the requirements of both programs, households would need to meet the following Household Eligibility Criteria:
oHousehold size meets the City’s standards for minimum and maximum occupancy for the size of the unit. The minimum household size is two (2) people for a two- bedroom unit, four (4) people for a three-bedroom unit, and eight (8) people for a five-bedroom unit. The EUPP units are not designed for single-person households. oHousehold income is extremely low (<30% of Area Median Income) or very low (<50% of Area Median Income).
oHousehold includes a member with a disability needing ongoing off-site support services to meet healthcare, transit, or social service needs. oHousehold is from one of the following population groups: veterans, seniors, families with children, single parents, young families, victims of domestic violence, persons with developmental disabilities.
To implement the two (2) programs, staff will issue an RFP to solicit proposals from supportive services/special needs agencies. Staff will then evaluate the proposals and return to the City Council with a recommendation to enter into an agreement with the service provider best suited for supportive housing in the EUPP units in general and, in particular, for the first vacant EUPP unit, a three-bedroom, 2-bath single-family home.
Proposals will be evaluated on criteria including, but not limited to:
the range of supportive services that the agency provides; 1 0
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household readiness: the number of households on a waitlist or identified by the agency that are in need of housing, and meet the household eligibility requirements as listed above and confirm that the agency has at least one household eligible for the first vacant EUPP unit (a three (3)-bedroom single-family home); and
costs to the City for program administration and any specifically requested tenant improvements (excluding requests for reasonable accommodations for those with disabilities).
Below is a list of various population groups listed in the eligibility criteria above for supportive/special needs housing, the supportive services they need, and agencies that could provide such services.
Lower-income seniors with disabilities
Assistance with daily living tasks, such as housekeeping, transportation services, health monitoring, coordination with healthcare and care providers, counseling, and coordination of disability-related services.
oList of agencies: Housing Choices, San Mateo County Health Department, Area Agency on Aging, San Mateo County Housing Authority (Section 8 Program), San Mateo County Health Department (In-Home Supportive Services Program).
Victims of domestic violence with a household member with disabilities Case management and advocacy, mental health and trauma-informed counseling, job training, educational support, childcare assistance, coordination of disability- related services.
oList of agencies: CORA, San Mateo County Department of Human Services.
Veterans with disabilities
Case management and connection to Veterans benefits and services, mental health counseling, coordination of medical care, job training, and coordination of disability-related services.
oList of agencies: US Department of Veterans Affairs, San Mateo County Veterans Service Office, Mental Health Association of San Mateo County, San Mateo County Housing Authority (Section 8 Program), San Mateo County Health Department (In-Home Supportive Services Program) Families with children, young families, single parents in which a household member has a disability
Case management, health monitoring and coordination with care providers, job training, educational support, counseling, life skills training, childcare assistance, and coordination of disability-related services.
oList of agencies: HIP Housing, San Mateo County Housing Authority (Section 8 Program), San Mateo County Health Department (In-Home Supportive Services Program)
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People with developmental disabilities
“Developmental Disability” is a disability as defined by Title 17, Section 54000 of the California Code of Regulations as attributable to any of the following conditions: Intellectual disability, cerebral palsy, epilepsy, autism, or disabling conditions found to be closely related to intellectual disability or to require treatment similar to that required for individuals with an intellectual disability. In addition to the above, the disability must originate before age 18, be likely to continue indefinitely, constitute a "substantial disability" for the individual as defined by Title 17, Section 54001 of the California Code of Regulations (“Substantial disability” means the person has major problems in at least three of these areas: communication skills (receptive and expressive language), learning, self-care, mobility, self-direction, independent living, economic self-sufficiency.
Supportive services could include case management and care services related to helping the person with the areas listed above.
oList of Agencies: Golden Gate Regional Center, which provides services and support to individuals with developmental disabilities in Marin, San Francisco, and San Mateo counties.
Staff has reached out to a few off-site supportive housing providers, including CORA, Housing Choices, the County of San Mateo, and HIP Housing, to gauge potential interest in a supportive/special needs housing program, and all have expressed interest in the City’s program.
Additionally, staff would like to note that the now vacant EUPP unit was occupied for 10 years and on January 13, 2026, a building inspection was conducted to assess the work required for rehabilitation of the unit including replacement of the and repairs and upgrades, including plumbing work, mechanical system work, appliance replacement, replacement of insulation, electrical panel upgrade, etc. The estimated cost for the rehabilitation work is approximately $150,000, excluding any requests for reasonable accommodation for those with disabilities. The rehabilitation work might take three (3) to four (4) months and will occur in parallel to the RFP issuance and selection of the supportive services provider. Staff will request, as part of the RFP process for supportive services, that respondents include any known requests for reasonable accommodations so that they can be evaluated and included, as appropriate, in the rehabilitation project plan. Staff will return to the City Council for supplemental appropriation for rehabilitation costs and costs of providing supportive housing services.
California Environmental Quality Act
This item merely proposes direction to staff and does not result in any commitment to a specific project and is not a project for CEQA purposes. In the event that this is considered a project under CEQA, the proposed direction to staff would not result in a physical change to the environment, and accordingly, is exempt from the California Environmental Quality Act pursuant to CEQA Guidelines Section 15061(b)(3) (the common sense exemption).
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FISCAL IMPACT
There is no fiscal impact associated with this item and issuance of RFP related to seeking proposals for Supportive Housing providers. However, there will be costs associated with the rehabilitation of the unit, and costs of providing supportive housing services. Staff will return to the City Council for appropriation of funds for the rehabilitation costs and entering into an agreement with the Supportive Housing provider.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Smart Planning, Development, and the Local Economy
ATTACHMENTS:
None