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Council authorizes new below-market-rate housing administrator, approves funding appropriation
Summary
Council authorized the city manager to execute a three-year contract with RISE Housing to administer Cupertino's BMR program and approved general-fund appropriations to cover administration costs; staff highlighted an upcoming expiration of many rental BMR units and proposed program improvements that would require separate council actions.
The City Council authorized the city manager on May 19 to execute a three-year contract with RISE Housing to administer Cupertino's below-market-rate (BMR) program and approved an appropriation from the general fund to cover the contract.
Senior housing coordinator Nikki Vu described a standard RFP process: the city issued the solicitation in November 2025, received three proposals, advanced two firms to interviews (RISE Housing and Housing Incorporated), presented findings to the housing commission in March, and then negotiated terms with the top-ranked proposer. Staff recommended a three-year agreement (FY26-27 through FY28-29) with RISE at about $160,000 per year for a three-person team to administer rental and for-sale BMR units, lotteries, recertifications and resales.
"RISE showed the strongest understanding and preparation of the work expected given our priorities," Vu said. Staff requested a general-fund appropriation to execute the contract rather than charging administration costs wholly to the BMR fund.
Director of Community Development Ben Fu told the council that one pressing program challenge is the imminent expiration of many older deed-restricted rental units: "We have 95 out of our 119 rental units in the portfolio that will expire due to a 30-year sunset," he said, adding that the program has been amended prospectively to 99-year restrictions for new units going forward.
Councilmembers asked about applicant experience and complaint mechanisms. The vice mayor urged staff to explore a feedback system so applicants, buyers and renters could flag poor service or process delays. Staff said the city already receives constituent complaints and can explore anonymous feedback options and would examine specific cases brought to the citystaff for follow-up.
Public commenters — including residents and a planning commissioner — urged staff to seek feedback from developers and applicants and flagged past concerns that took place under prior administration contracts, such as delays or unclear expectations in resale and rental processing. Staff said some potential program improvements (for example, imposing administrative fees on sellers or joining a regional listing portal to reduce wait times) would require separate council action and possible changes to the program manual.
The council voted to authorize the agreement; the motion carried with Councilmember Wong absent.
