2025 COUNCIL STUDY ISSUE
NUMBER
Title
CDD 25-02 Identify Opportunities for Allowing Neighborhood-Serving Commercial Uses in Residential Zoning Districts
BACKGROUND
Lead Department:
Community Development Department
Support Departments:
Department of Public Works
Office of the City Attorney
Sponsor(s):
Planning Commission
History:
New Study Issue
Council Strategic Priority:
Yes
(At time of sponsorship)
Ability of Infrastructure to Support Development and Traffic
Accelerating Climate Action, the Active Transportation Plan and Vision Zero Plan
Equity, Access and Inclusion
SCOPE OF THE STUDY
What precipitated this study?
The City has a number of policies to encourage retail and commercial uses and facilitate business expansion within commercially-zoned areas. In residential zoning districts, the City's Home Occupation standards in Section 19.42.010 of the Sunnyvale Municipal Code allow a limited range of commercial uses with regulations to maintain the primary residential character of the home. In general, home-based businesses must be confined indoors within the living space of the home and any customer visits are limited to a one-on-one appointment basis. Aside from the Home Occupation standards, family day care homes are permitted by right in residential zoning districts. Other types of commercial uses in residential zoning districts require discretionary permits at public hearings, such as medical offices, community-serving places of assembly and preschools. Retail, if incidental to other permitted uses and combined with the residential use may be considered with a discretionary permit only in the R-3, R-4, R-5, and R-MH zoning districts.
Recent state laws have also cleared the way for commercially-zoned properties to redevelop to residential uses in the state's effort to address the housing crisis. The Housing Crisis Act of 2019 (SB 330) allows cities to prohibit commercial uses on land zoned for residential uses. Some recent residential projects in ...
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