REPORT TO HOUSING AND HUMAN SERVICES COMMISSION
SUBJECT
Title
Consider a Below Market Rate Alternative Compliance Plan for Residential Development at 777 Sunnyvale-Saratoga Road: 77Seven Housing Partners LLC, Planning File 2024-0621
Report
BACKGROUND
On April 28, 2025, the Planning Commission approved Planning File 2023-0807 for a new residential development by 77Seven Housing Partners LLC ("Applicant") for 242 residential units, comprised of 80 ownership units and 162 rental units ("Project"). The Applicant is required to comply with the Below Market Rate (BMR) Housing requirements, codified in Sunnyvale Municipal Code (SMC) Chapter 19.67 and Chapter 19.77.
SMC Chapter 19.67 requires that residential projects of seven or more new ownership units provide 15% of the units in the project as BMR homes, affordable to moderate or lower-income home buyers. SMC Chapter 19.77 requires that residential projects of three or more new rental units provide 15% of the units in the project as BMR homes, affordable to low- and very low-income renters. Both chapters allow an applicant to apply for City Council approval of an alternative compliance option, after approval of the project, as defined in SMC Section 19.67.100 and 19.77.100, to satisfy the BMR requirements.
The City's Administrative Policy Chapter 1 - General Management Article 24 - Review and Approval of Affordable Housing Alternative Compliance Plans, requires the Housing and Human Services Commission to review and make a recommendation to City Council when an alternative compliance option is requested by an applicant.
In July 2024, the Applicant completed the Affordable Housing Compliance Plan and included a formal letter (Attachment 2) requesting an alternative compliance to dedicate land to the City in lieu of providing the required BMR units. The land to be dedicated would accommodate an affordable housing development with 160 rental units affordable to households earning between 30-60% area median income ...
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