Cupertino Housing and Redevelopment - Cupertino's Continued Success Depends on New Housing and Redevelopment

Cupertino Housing and
    Redevelopment
Cupertino’s Continued Success Depends on New Housing and
                     Redevelopment

Community Objectives
• Create significant new housing in the community that is “affordable”
  for a range of residents with modern mixed use approach

• Allow for rental and ownership opportunities for teachers, city
  employees, essential services employees, software engineers

• Housing must address senior and young families and keep children in
  our schools to address declining enrollment

• Target 8,000 new housing units, comparable to Mountain View’s
  addition adjusted for the relative size of Cupertino

What can potential residents afford?
   Local Cupertino Job Salary Range                     “Affordable” House Value   For Sale          Affordable
                                                                                   Availability in   Rental based
                                                                                   95014             on income*
   Minimum Wage               $15 hr / $30,000                                     0 homes           $750
                              year
   Teacher (start)            $52,000                   $88,020 – 149,500          0 homes           $1,300
   Teacher (top)              $102,000                  $186,390 - $307,000        0 homes           $2,550
   Software Engineer          $155,000                  $397,000 - $580,600        0 homes           $3,875
   Double Income              $300,000                  $961,000 - $1,312,000      5 homes           $7,500
   Engineer
   Fortunate Few              $450,000                  $1,484,216 - $2,016,100    7 homes           $11,250

Source: Redfin May 7, 2018, 10:30pm
*https://www.nakedapartments.com/blog/rent-to-income/

Housing in Cupertino
                            From Zillow Debt-to-Income Calculator

                            OK DTI (37%); LIKELY ELIGIBLE FOR A NEW
                            MORTGAGE BUT WON’T HAVE A LOT OF
                            INCOME LEFT FOR NON-HOUSING EXPENSES.

                            Remaining
                                          $22,426
                            Total monthly debts
                                          $12,991
                            Max estimated
                            mortgage payment
                                          $0

                            Required Annual Income      $425,000

                            Other Obligations
                            Credit Card                 $1,000
                            Car Payments                $1,000

Source: Redfin and Zillow

What development is approved in
Cupertino?
Approved housing units: 918

Biltmore Adjacency
Mixed Use Project, Completed. Development of 90 new apartment units and a 7,000 square foot commercial building. (90)

Charities Housing
Project Approved But Not Built. Proposal to construct a 19-unit affordable senior housing development (Charities Housing) on a vacant parcel. (19)

Foothill Apartments
Residential Project, Construction. Construction of a 15-unit apartment complex housed within three two-story buildings.(15)

Foothill Blvd Live/Work
Mixed Use Project, Construction. Development to construct six residential units, including five live-work units with detached workspaces. (6)

The Hamptons
Residential Project, Approved But Not Built. Development Permit and Architectural and Site approval to allow the demolition of 342 apartments, and the
construction of 942 apartments. (600)

Marina Plaza
Mixed Use Project, Approved But Not Built. Proposal for the construction of a mixed-use development with 23,600 sq ft of commercial space, 122-room
hotel, and 188 residential units with 16 below market rate units. (188)

Where can Cupertino support redevelopment and new housing?
                                                   Apple
                         Good Year                 Park

                                        Hamptons

                                        Vallco
                  Oaks
                           Marina

Why is mixed use better for Cupertino?
Mixed-use communities help companies recruit and retain top talent.

Employees demand work/life balance, more shopping and dining options, and more meaningful experiences in and
around the workplace. According to NAIOP, 87 percent of office tenants would rather be located in suburban
vibrant centers than in typical, single-use suburban office locations. Employees want to live and work in areas with
a “sense of place” and access to shopping, dining and entertainment.

Mixed-use developments contribute more to the local economy than single-use office developments.

In addition to promoting a walkable built environment, mixed-use developments provide many economic benefits.
They can revitalize communities, encourage private investment, increase property values, promote tourism and
support local business development.

Mixed-use developments contribute more to the local economy than single-use office developments.

In addition to promoting a walkable built environment, mixed-use developments revitalize communities, encourage,
increase property values, promote tourism and support local business.

Examples of great mixed use development

      The Wharf, Washington, DC   Brickell City Centre Miami, FL

Why is this important to Cupertino residents

What are neighboring cities doing?

Case study: City of Mountain View
Precise Plan Dense, Mixed-Use,
Car-Light Neighborhoods
 •   9,850 new homes and apartments
 •   About 70 percent of the homes will be studios and
     one-bedroom apartments, with other development
     reserved for single family homes and multi
     bedroom apartments.
 •   3.6 million square feet of office space, and a mix of
     retail stores, services and entertainment spots.
 •   20 percent of the housing development to be
     affordable, below-market units.