REPORT TO COUNCIL
SUBJECT
Title
Consider a Below Market Rate (BMR) Alternative Compliance Plan for Residential Development at 1124 W. El Camino Real: Applicant: DeAnza Properties, Planning File 2024-0780
Report
SUMMARY OF COMMISSION ACTION
The Housing and Human Services Commission (HHSC) considered this item on June 25, 2025 (see Attachment 1 for Report to HHSC).
The HHSC voted to approve Alternative 1: Recommend approval of the Applicant's BMR Alternative Compliance Plan for the project located at 1124 W. El Camino Real. The vote was 7-0. An excerpt of the minutes is provided in Attachment 5.
FISCAL IMPACT
Through this Alternative Compliance Plan, the City is likely to receive over $17 million in Housing Impact Fees, which can be used for new affordable housing projects and/or programs to be determined at a future date. This approach allows the City to use these funds to assist nonprofit development partners in building a considerably larger number of units for extremely low-, very low- and low-income households in the community. Since the project was previously expected to pay a Housing Impact Fee for the rental units, staff anticipated that the revenue would be available to support affordable housing developments throughout the City.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
ALTERNATIVES
1. Approve the Applicant’s BMR Alternative Compliance Plan for the project located at 1124 W. El Camino Real as shown in Attachment 2 to the report.
2. Approve the Applicant’s BMR Alternative Compliance Plan for the project located at 1124 W. El Camino Real, with modifications (such as a blend of in-lieu fee and BMR units).
3. Do not approve the Applicant’s BMR Alternative Compliance Plan for the project and require the Applicant to comply with the inclusionary BMR requirements outlined in the Sunnyvale Municipal Code.
4. Indicate a preference for another type of alternative compliance.
STAFF RECOMMENDATION
Recommendation
Alternative 1: Approve the Applicant’s BMR Alternative Compliance Plan for the project located at 1124 W. El Camino Real as shown in Attachment 2 to the report.
JUSTIFICATION FOR RECOMMENDATION
Staff recommends approving the Alternative Compliance Plan, as requested, to allow payment of an In-Lieu Fee to satisfy the Inclusionary Housing requirements for the new ownership units in this project. A typical condominium development of similar density has approximately 950 square feet for a two-bedroom unit and around 1,350 square feet for a three-bedroom unit. The subject development averages about 1,900 square feet per unit (with three-bedroom units averaging 1,762 square feet without a den and 2,158 square feet with a den), making the unit sizes larger than average. In addition, stacked flat style condominiums can have a higher-than-normal HOA fee due to elevator expenses and more common space maintenance, which can be burdensome to lower-income households.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
_X_ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Ernie Defrenchi, Affordable Housing Manager
Reviewed by: Amanda Sztoltz, Housing Officer
Reviewed by: Trudi Ryan, Director, Community Development
Reviewed by: Dennis Jaw, Assistant Director of Finance
Reviewed by: Matt Paulin, Director of Finance
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Report to Housing and Human Services Commission [25-0420, June 25, 2025] (without attachments)
2. Affordable Housing Compliance Plan
3. In-Lieu Fee Calculations
4. Site and Architectural Plans
Additional Attachments for Report to Council
5. Excerpt of Final Minutes of the Housing and Human Services Commission Meeting of June 25, 2025