Housing and Human Services Commission

City of Sunnyvale Meeting Minutes - Final Housing and Human Services Commission Wednesday, August 28, 2019 7:00 PM West Conference Room, City Hall, 456 W. Olive Ave., Sunnyvale, CA 94086 CALL TO ORDER Vice Chair Joshua Grossman called the meeting to order at 7:02 p.m. SALUTE TO THE FLAG Vice Chair Grossman led the salute to the flag. ROLL CALL Present: 4 - Commissioner Joshua Grossman Chair Ken Hiremath Commissioner Minjung Kwok Vice Chair Elinor Stetson Absent: 2 - Commissioner Diana Gilbert Commissioner Emily White Chair Diana Gilbert (excused absence) Commissioner Emily White (excused absence) Council Liaison Mayor Larry Klein (present) ORAL COMMUNICATIONS Mayor Klein introduced himself as the new Council liaison for the second half of 2019. He thanked the commissioners for their service and gave a brief explanation of what his role is as the Council liaison in these meetings. CONSENT CALENDAR 1.A 19-0590 Approve the Housing and Human Services Commission Meeting Minutes of April 17, 2019 Vice Chair Grossman asked for a motion to approve the consent calendar. MOTION: Commissioner Kwok moved and Commissioner Hiremath seconded the motion to Approve the Housing and Human Services Commission Minutes of April 17, 2019 as submitted. City of Sunnyvale Page 1 Housing and Human Services Meeting Minutes - Final August 28, 2019 Commission The motion carried by the following vote: Yes: 5 - Chair Hiremath Vice Chair Stetson Commissioner Grossman Commissioner Kwok Commissioner Vacant No: 0 Absent: 2 - Commissioner Gilbert Commissioner White PUBLIC HEARINGS/GENERAL BUSINESS 2 19-0690 Introduce an Ordinance to add Chapter 19.77 ("Inclusionary Below Market Rate Rental Housing") to Title 19 ("Zoning") of the Sunnyvale Municipal Code to create an Inclusionary Rental Housing Program, and adopt a Resolution to amend the Master Fee Schedule and create a Rental Housing In-Lieu Fee. Housing Officer Jenny Carloni provided the staff report. After clarification questions of staff, Vice Chair Grossman opened the public hearing at 7:21 p.m. Travis Duncan, Development Project Manager at Saris Regis, spoke in support of staff's recommendations to increase the in-lieu fee rates in recognition of the increasing cost to build housing. He also asked for a recommendation to "grandfather" Saris Regis's Downtown projects that are already under development into the old system in order to not disrupt their progress. He noted that there will be affordable housing units in the downtown developments and that the number of units and level of income affordability is already being negotiated in good faith with City staff. Marie Bernard, Executive Director of Sunnyvale Community Services (SCS), spoke in favor of staff's recommendation and recognized the work by City staff to prioritize production of affordable housing in Sunnyvale. Brennan Robins, 20-year Sunnyvale resident and Greenbelt Alliance intern, spoke City of Sunnyvale Page 2 Housing and Human Services Meeting Minutes - Final August 28, 2019 Commission in favor of a strong inclusionary housing ordinance and encouraged the commissioners to recommend an in-lieu fee high enough to reflect the actual cost of building affordable housing in Sunnyvale. He noted that he doesn't want to be part of the exodus of young people that cannot afford to stay in Sunnyvale due to the high cost of housing. Vice Chair Grossman closed the public hearing at 7:28 p.m. After discussion and questions of staff, Vice Chair Grossman asked for a motion. MOTION: Commissioner Hiremath moved and Vice Chair Grossman seconded the motion to Recommend to City Council Alternatives 1 and 5: 1.) Introduce an ordinance to add Chapter 19.77 ("Inclusionary Below Market Rate Rental Housing ") to Title 19 ("Zoning") of the Sunnyvale Municipal Code to create an Inclusionary Rental Housing Program (Attachment 3 to the report); and 2.) Approve a Resolution to amend the Master Fee Schedule and create a new Small Rental Project In-Lieu Fee of $15.00 per habitable square foot and a new Large Rental Project In-Lieu Fee of $30.00 per habitable square foot, adjusted annually as part of the City Fee Schedule (Attachment 4 to the report). FRIENDLY AMEDMENT: Commissioner Kwok offered a friendly amendment to scale the fee to incentivize the production of larger family housing units. Commissioner Hiremath accepted the friendly amendment. The motion was restated as: MOTION:Commissioner Hiremath moved and Vice Chair Grossman seconded the motion to Recommend to City Council Alternatives 1 and 5: 1.) Introduce an ordinance to add Chapter 19.77 ("Inclusionary Below Market Rate Rental Housing ") to Title 19 ("Zoning") of the Sunnyvale Municipal Code to create an Inclusionary Rental Housing Program (Attachment 3 to the report); and 2.) Approve a Resolution to amend the Master Fee Schedule based on a scaling fee schedule proposal to be prepared by staff based on fee option 3 that incentivizes the production of three- and four-bedroom units, adjusted annually as part of the City Fee Schedule (Attachment 4 to the report). The motion carried by the following vote: City of Sunnyvale Page 3 Housing and Human Services Meeting Minutes - Final August 28, 2019 Commission Yes: 4 - Commissioner Grossman Chair Hiremath Commissioner Kwok Vice Chair Stetson No: 0 Absent: 2 - Commissioner Gilbert Commissioner White 3 19-0836 Consider Request from Sunnyvale Community Services for Forgiveness of 2003 Community Development Block Grant (CDBG) Loan in the amount of $400,000. Housing Officer Carloni introduced Leif Christiansen, Housing Programs Analyst, who provided the staff report for this item. After a few clarifying questions of staff, Vice Chair Grossman opened the public hearing at 7:51 p.m. Marie Bernard, Sunnyvale Community Services (SCS) Executive Director, spoke in favor of staff's recommendation. She explained that SCS has been looking for a new location for several years and this loan forgiveness will free up funds for that purchase. The new location will allow SCS to expand its capacity to better serve the Sunnyvale community. Travis Duncan, Development Project Manager at Saris Regis and SCS Board member, also spoke in support of the recommendation. Vice Chair Grossman closed the public hearing at 8:01 p.m. After additional questions of staff, and a short discussion about the merits of the request, ramifications of this action with the Department of Housing and Urban Development (HUD) and repercussions with other non-profit borrowers, Vice Chair Grossman asked for a motion. MOTION: Commissioner Stetson moved and Commissioner Kwok seconded the motion to approve Alternative 1: Recommend that Council Approve the CDBG Loan Forgiveness for Sunnyvale Community Services (SCS) in the amount of $400,000, and make a formal policy statement that this action shall not be seen as a precedent for other borrowers, and is made only due to the increasing service provided by City of Sunnyvale Page 4 Housing and Human Services Meeting Minutes - Final August 28, 2019 Commission SCS to the Sunnyvale community. The motion carried by the following vote: Yes: 4 - Commissioner Grossman Chair Hiremath Commissioner Kwok Vice Chair Stetson No: 0 Absent: 2 - Commissioner Gilbert Commissioner White 4 19-0784 Nominate a Housing and Human Services Commissioner to the El Camino Real Specific Plan Advisory Committee Vice Chair Grossman asked if anyone was interested in being nominated. Commissioner Hiremath asked questions of staff and expressed his interest in being nominated. After asking if anyone else was interested, Vice Chair Grossman nominated Commissioner Hiremath to the El Camino Real Specific Plan Advisory Committee. Commissioner Hiremath was elected by acclamation 5 19-0497 Election of Chair and Vice Chair for FY 2019/20 Vice Chair Grossman asked if anyone was interested in serving as Chair and opened the floor for nominations. Staff noted that Chair Gilbert was not opposed to be nominated in absentia. Commissioner Stetson nominated Chair Gilbert for the office of Chair. Commissioner Kwok nominated Commissioner Hiremath for the Office of Chair. Commissioner Hiremath accepted the nomination. Vice Chair Grossman asked for a vote on Chair Gilbert's nomination. Motion failed by the following vote: Yes: 1 - Vice Chair Stetson City of Sunnyvale Page 5 Housing and Human Services Meeting Minutes - Final August 28, 2019 Commission No: 3 - Commissioner Grossman Chair Hiremath Commissioner Kwok Absent: 2 - Commissioner Gilbert Commissioner White Vice Chair Grossman asked for a vote on Commissioner Hiremath's nomination. Commissioner Hiremath's was elected to the Office of Chair for FY 2019/20 by the following vote: Yes: 3 - Commissioner Grossman Chair Hiremath Commissioner Kwok No: 1 - Vice Chair Stetson Absent: 2 - Commissioner Gilbert Commissioner White Vice Chair Grossman nominated Commissioner Stetson to the Office of Vice Chair. Commissioner Stetson accepted the nomination. There were no other nominations. Commissioner Stetson was elected to the Office of Vice Chair for FY 2019/20 by the following vote: Yes: 4 - Commissioner Grossman Chair Hiremath Commissioner Kwok Vice Chair Stetson No: 0 Absent: 2 - Commissioner Gilbert Commissioner White STANDING ITEM: CONSIDERATION OF POTENTIAL STUDY ISSUES 19-0755 Updates to the Study Issues Process Housing Officer Carloni gave a short overview of the updates to the Study Issues Process and answered questions. 19-0645 Housing and Human Services Commission Potential Study Issues, Calendar Year: 2020 City of Sunnyvale Page 6 Housing and Human Services Meeting Minutes - Final August 28, 2019 Commission None. NON-AGENDA ITEMS & COMMENTS -Commissioner Comments None. -Staff Comments None. ADJOURNMENT Vice Chair Grossman adjourned the meeting at 8:28 p.m. City of Sunnyvale Page 7