RHNA (Regional Housing Needs Allocation) and the General Plan


The General Plan is our City’s roadmap for the future. While it should not be changed on a whim, and we should minimize spot-rezoning for specific projects, we will be required to make zoning changes to create a Housing Element for the next RHNA (Regional Housing Needs Allocation) Cycle which covers the years 2023-2031.

Like every City in California, Cupertino creates a Housing Element that must be approved by the State of California. We must entitle at least the number of units assigned by our regional authority, ABAG (Association of Bay Area Governments).

Our RHNA requirement for the current eight-year cycle (2015-2023) was 1064 units. Our Housing Element entitled 1400 units. We actually entitled far more housing than was specified in our Housing Element. Cupertino entitled 3,457 residential units. Cupertino has the second best  jobs to housing ratio in the County.

Our excellent Jobs/Housing ratio is largely because the City has not entitled large amount of commercial office space. The cities with poor Jobs to Housing ratios, like Palo Alto and Santa Clara, entitled large quantities of new commercial office space. The Apple Park project is often cited by the bad actors in Sacramento as an example of Cupertino allowing large quantities s of commercial office space, but they omit the fact that Apple Park is almost all “replacement office space,” since the HP buildings were all torn down in order to build the (much nicer) Apple Park facility.

The biggest issue California cities have with RHNA is that the Housing Element Sites that they choose, and the entitlements that they approve, don’t necessarily result in the housing actually being built. A city cannot force a property owner to build an approved project. Of the 1400 units in the current housing element, only 11 have been built and occupied (the Veranda project, which the City expanded from 11 to 19 units by eliminating ground-floor retail).

The failure of property owners to build their approved projects was almost inconceivable at the time the Housing Element was approved. Rents were very high and there was a shortage of market-rate housing. But that all changed. California now has a glut of unaffordable market-rate housing, and projects currently under construction are worsening the glut. I talked to one property owner in Santa Clara that built a project that required rezoning of the land from commercial to residential. They said that at the time the rezoning made sense but that they would not do the same thing today because now they are stuck with a huge amount of luxury housing and a shortage of tenants. The 2023-2031 RHNA cycle will exacerbate the problem. Cities will have to identify a very large number sites for new housing knowing that there is no way that much housing will ever be built. Covid-19, and remote-working, has enabled a large number of employees of Silicon Valley companies to live in areas with less expensive housing, where they can purchase a house instead of living in a rental apartment.

Mistakes were made in the Housing Element for the current RHNA cycle and these mistakes are a contributing factor in CUSD's enrollment and funding issues. The lack of long-term planning and the lack of demographic data, led to the Housing Element sites not being chosen properly.

RHNA is going to be the biggest and most controversial task that next City Council will have to deal with. The decisions we make will affect school enrollment, school funding, homelessness, property tax collection, water, and transportation. RHNA is very complex and it's not something that most residents should have to become experts on. We need a City Council that can be trusted to act in the best interests of the City.

It’s somewhat depressing to see the lack of understanding of the RHNA process by some City Council candidates.

Steven Scharf and Kitty Moore are the only two candidates with an understanding of RHNA. In fact both of us have already began researching which sites would be appropriate for medium to high-density housing projects and that would take into account the issue of school enrollment. There are a limited number of parcels suitable for housing in areas with low school enrollment, and it's not clear if the owners of those parcels are interesting in having their land rezoned for medium to high-density housing.

It's vital to vote for City Council candidates that understand the RHNA process.

Proudly NOT Endorsed or Funded by the Developer-Controlled Cupertino Chamber of Commerce and San Jose Mercury News, Special Interest Groups, or WIMBYs!

Steven Scharf for Cupertino City Council 2020 FPPC ID #1388099