REPORT TO COUNCIL
SUBJECT
Title
Consider Below Market Rate Alternative Compliance Plans for Residential Developments at 803 W. El Camino Real (Pastoria Corners) and 871 E. Fremont Avenue (Butcher's Corner). Applicant: De Anza Properties; Planning Files 2016-7568 and 2016-7569
Report
BACKGROUND
In 2016, the City Council approved two new residential developments, both proposed by De Anza Properties (Applicant):
* Pastoria Corners, a mixed-use project of 49 dwelling units with vesting tentative map and commercial/hotel uses (File 2015-7756) was approved by the Planning Commission on April 25, 2016 and upheld on appeal by Council on June 21, 2016 (RTC No. 16-0557); and
* Butcher's Corner, a residential project of 138 dwelling units with a vesting tentative map (File 2014-7373), was approved by Council on December 13, 2016 (RTC No. 16-1132).
Both developments are required to comply the Below Market Rate Housing requirements (BMR Program), codified in Sunnyvale Municipal Code (SMC) Chapter 19.67 (Chapter 19.67). Chapter 19.67 requires that residential projects of 8 or more new ownership units provide 12.5% of the units in the project as BMR homes, affordable to moderate- or lower-income home buyers. Both projects are mapped to allow all of the units to be offered for-sale; a portion of both projects include units that will be for-sale at the inception of the development and a portion that will be rental at inception. The Applicant may apply for Council approval of an alternative compliance option, as defined in SMC Section 19.67.090, to satisfy the BMR requirements. After these projects were approved in 2016, the Applicant filed applications for each project (File 2016-7568 for Pastoria Corners and File 2016-7569 for Butcher's Corner) requesting Council approval to pay BMR in-lieu fees (ILF) rather than providing BMR homes within the project. This ILF option is set forth in SMC Section 19.67.090(b), while SMC Section 19.67.090 (a) allows Council discretion to ap...
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