Cupertino council approves $3 million to Mary Avenue Villas; reallocates below-market-rate funds after debate

The Cupertino City Council voted April 15 to adjust its below-market-rate (BMR) housing funding recommendations and commit $3,000,000 to the Mary Avenue Villas project (Charities Housing) while allocating $1,083,200 to Eden Housing's Wolf Road project.

Vice Mayor Moore moved the substitute motion and was seconded by Councilmember Fruin; the motion passed with Councilmember Long recorded as the sole vote against the final allocation. The council approved the funding after extensive public comment that included advocates for people with intellectual and developmental disabilities (IDD), housing-service providers, neighbors concerned about parking and traffic, and developers.

City staff described the recommended funding stack for Mary Avenue Villas as a combination of program sources: Community Development Block Grant (CDBG) funding ($174,567.37), Permanent Local Housing Allocation (PLHA) funds ($908,683), and BMR capital funds ($1,916,800), totaling $3,000,000 for the project. The council's action commits BMR funds locally; staff confirmed the city will execute loan/loan-agreement documents contingent on the projects receiving required planning entitlements.

Supporters urged the council to approve the allocation so housing for people with IDD can move forward promptly. Jennifer Lucas, manager of the Central Coast Office of the California State Council on Developmental Disabilities, told the council "people with developmental disabilities are particularly impacted by the shortage of affordable housing" and said many remain with aging parents. Jia Fong of Housing Choices, the project's proposed on-site service provider, said Mary Avenue would provide "doorways to independence" for residents who often live on Social Security benefits.

Speakers representing Housing Choices, West Valley Community Services, the State Council on Developmental Disabilities and families whose relatives already live in nearby affordable housing emphasized the project's readiness and the population's low incomes. Several speakers asked the council to prioritize people who live or work in Cupertino on BMR waitlists; staff said current waitlist rules already award points to applicants who live or work in Cupertino and said further refinements could be studied for future policy changes.

Opponents and nearby residents raised concerns about parking, traffic and the suitability of the Mary Avenue location for a 40-unit affordable project. Several neighbors urged the council to seek design changes, additional on-site parking or alternative sites; staff said planning review and entitlements would address many of the design, parking and traffic issues and said the city would reserve the right to return BMR funds if projects fail to reach planning approvals.

Council discussion focused on balancing project readiness against other pipeline projects. Staff explained Eden Housing's request was for a later project phase and County and state funding applications for Wolf Road continue; the council majority concluded the Mary Avenue project's readiness justified the larger allocation now.

Ending

Councilmembers directed staff to execute agreements once planning entitlements are obtained and to work with the Mary Avenue developer on design and parking mitigation; staff also retained authority to return reserved funds to the BMR balance should planning approvals not be achieved.