REPORT TO PLANNING COMMISSION
SUBJECT
Title
Forward a Recommendation to the City Council to Take the Following Actions:
Proposed Project: Introduce an Ordinance to Amend Sunnyvale Municipal Code (SMC) Title 19 (Zoning) to Repeal and Replace Chapter 19.78 (Dual Urban Opportunity (DUO) Housing) and Title 18 (Subdivisions) to Repeal and Replace Chapter 18.26 (Urban Lot Splits (ULS)) to Conform with New State Laws; and to Amend Title 19 (Zoning) and Title 3 (Revenue and Finance) to Conform with State Legislation Regarding Deferral and Reduction of Development Impact Fees for Certain Housing Projects Pursuant to Senate Bill 937 and Assembly Bill 2553.
File #: PLNG-2025-0078
Environmental Review: The action is exempt pursuant to California Environmental Quality Act (CEQA) Guidelines Sections 15061(b)(3) and 15378(b)(4)-(5) and Government Code Sections 65852.21(j) and 66411.7(m).
Project Planner: Gabriela Ventura, (408) 730-7407, gventura@sunnyvale.ca.gov
Report
REPORT IN BRIEF
This report proposes amendments to the Sunnyvale Municipal Code (SMC) to address recent changes in State laws affecting housing development and development impact fees. The proposed ordinance amendments address two issues:
DUO Housing and Urban Lot Splits: Recent changes to Senate Bill (SB) 9, including SB 450 and Assembly Bill (AB) 1061, changed requirements for two-family housing and lot splits in single-family residential zones. The City’s existing DUO and ULS regulations need to be updated to conform with these changes.
Development Impact Fees: SB 937 and AB 2553 established new requirements regarding when certain development impact fees may be collected and when transportation impact fees must be reduced for qualifying housing projects.
Staff also identified several clarifying amendments based on the City’s experiences processing DUO and ULS applications. To address these requirements, staff recommends:
Repealing and readopting Chapter 19.78 (Dual Urban Opportunity Housing)
Repe...
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