Housing Documents

Housing Element 2015-2023

In accordance with State law, California cities must have an adopted General Plan and the General Plan must contain a Housing Element. Cupertino's Housing Element comprises of Chapter 4: Housing Element(PDF, 5MB) and Attachment B: Technical Report(PDF, 5MB). While all elements of a General Plan are reviewed and revised regularly to ensure that the plan remains current, state law requires that the Housing Element be updated every five years. State law also dictates the issues that the Housing Element must address and furthermore requires the element to be reviewed by the California Department of Housing and Community Development (HCD) to assure that it meets the minimum requirements established by Government Code §65580-65589.8. This process is commonly referred to as “certifying” the Housing Element.

The major, and most controversial, requirement for the Housing Element is that it requires cities to adequately plan to meet their existing and projected housing needs including their share of the regional housing need. The Association of Bay Area Governments (ABAG) recently completed the Regional Housing Needs Allocation (RHNA). As part of this process, ABAG worked with regional and local governments to develop a methodology for distributing the nine-county Bay Area's housing need (as determined by HCD) to all local governments in the region. Each city and county has received an allocation of housing units, broken down by income categories, for which it must plan for by identifying adequate sites zoned at adequate densities.

Housing Mitigation Manual

The City Council adopted the Housing Mitigation Fees (effective July 1, 2021) for both residential and non-residential uses. On May 19, 2020, the City Council adopted an updated version of the Below Market Rate (BMR) Housing Mitigation Program Procedural Manual (Housing Mitigation Manual)(PDF, 605KB) which establishes procedures to implement housing mitigation as required by the General Plan 2015-2022 Housing Element(PDF, 5MB). This manual consists of two major components, Section One addressing the office and industrial mitigation and Section Two addressing residential housing mitigation.

Below Market Rate (BMR) Manual

On March 20, 2018, the City Council adopted an updated version of the Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units (BMR Manual)(PDF, 2MB).

BMR Housing Program

See Chapter 19.172 of the Municipal Code for more information on the City's BMR Program. The purpose of City's Below Market Rate Housing Program is to:

1. Encourage the development and availability of housing affordable to a broad range of households with varying income levels within the city as mandated by State Law, California Government Code Sections 65580 and the City's General Plan, including its Housing Element.
2. Promote the city's goal to add affordable housing units to the city's housing stock in proportion to the overall increase in new jobs and market rate housing units.
3. Mitigate the need for affordable housing created by new market-rate housing development and ensure that market-rate housing development does not utilize all land available in the city for affordable housing.
4. Mitigate environmental and other impacts that accompany new residential and commercial development by protecting the economic diversity of the city's housing stock, with the goal of reducing traffic, transit and related air quality impacts, promoting jobs/housing balance and reducing the demands placed on transportation infrastructure in the region.
5. Increase the supply of for-sale and rental housing for families and individuals employed in Cupertino whose incomes are insufficient to afford market rate housing. Since the historical rate of production of affordable housing in the city, by private developers is very low, the BMR program is essential to meet the city's need for affordable housing.

Nexus Study

On May 19, 2020, the City Council adopted an updated version of the Economic Feasibility Study(PDF, 1MB), prepared for the City by Strategic Economics. Council amended the Housing Mitigation Manual to increase the BMR requirement for ownership projects from 15% to 20%, made other conforming changes consistent with State law, and increased the fees for office, research and development, and industrial space.

The 2015 Residential Nexus Study(PDF, 952KB) documents and quantifies the linkages between new market-rate residential development in the City and the demand for additional affordable housing. The analysis, which demonstrates ongoing support for an affordable housing requirement, has been prepared by Keyser Marston Associates, Inc. (KMA) for the City.

The 2015 Non-Residential Nexus Study(PDF, 488KB) is the non-residential component of the City ’s Housing Mitigation Program, which requires that commercial and industrial development pay an affordable housing impact fee, or “housing fee.” This report documents a Non-Residential Jobs-Housing Nexus Analysis, which provides legal support for establishing an affordable housing impact fee for non-residential development. The materials have been prepared by KMA for the City.

Regional Housing Needs Allocation (RHNA)

The CA Department of Housing and Community Development (HCD) maintains an Annual Progress Report (APR) Permit Summary that shows how cities and counties are progressing toward meeting their RHNA housing goals. Progress is measured by how many housing construction permits have been issued at various income levels. Information on Cupertino's RHNA progress is available as part of HCD's Housing Element Open Data Project.

Information about the 2022-2030 RHNA Cycle is available on the Association of Bay Area Government website.

• ABAG 2023-2031 RHNA and Plan Bay Area 2050 Key Milestones (May 2020)
• RHNA Data for Santa Clara County Jurisdictions (2015-2019)(XLSX, 18KB)

Housing Element Sites

Table HE-5: Summary of Priority Housing Element Sites To Meet the RHNA- Scenario A
As of 5/9/22

Site	Status
Site A1 (The Hamptons)	Approved (7/5/16)
Site A2 (Vallco Shopping District)	Specific Plan Approved (9/19/18) Specific Plan Rescinded upon Referendum (5/7/19) SB35 Application Approved (9/21/18) Some Demolition Permits Issued (2018, 2019, & 2020) Grading/Building Permits Under Review (3/21) Application for modification under review. Decision expected by 6/3/22 (4/22)
Site A3 (The Oaks Shopping Center / Westport)	Application Submitted (5/17/18) Application Deemed Complete (7/25/19) Approved by City Council (8/18/20) Project Modifications Approved (6/29/21, 11/16/21, & 12/21/21) Demolition Permit issued 11/4/21 Building Permits for Building 2 Senior BMR Building Issued (12/15/21) Site Work Permits for Townhome/RowHouse Parcel Issued (2/14/22 & 2/18/22)
Site A4 (Marina Plaza)	Original Project Approved (9/6/16) Original Project Entitlements Expired (10/20/21) SB 330 Preliminary Application Submitted (2/21/22) New Project Application Submitted and Under Review (3/29/22)
Site A5 (Barry Swenson / "The Veranda")	Completed & Occupied (July 2019)