REPORT TO PLANNING COMMISSION
SUBJECT
Title
Proposed Project:
Introduce an ordinance to Amend Chapter 19.67 (Inclusionary Below Market Rate Ownership Housing Program) and Chapter 19.77 (Inclusionary Below Market Rate rental housing) of Title 19 (Zoning) of the Sunnyvale Municipal Code to Modify Requirements for Qualified Retail Preservation Projects, Adopt a Resolution to establish a retail preservation incentive program for certain village center sites and Find that the Proposed Amendments Are Consistent with the Environmental Impact Report for the Land Use and Transportation Element (LUTE) and Do Not Require Additional Environmental Review Pursuant to CEQA Guidelines Section 15162.
Location: Citywide Village Center Sites
File #: PLNG-2025-0001
General Plan Land Use: VMU (Village Center Mixed Use)
Project Planner: Trudi Ryan, (408) 730-7435, tryan@sunnyvale.ca.gov
Report
REPORT IN BRIEF
Village Centers are a newer type of land use for Sunnyvale, first adopted in the 2017 Land Use and Transportation Element (LUTE). Subsequent changes in state housing laws allow developers of Village Center sites to build housing without all of the envisioned features and amenities, including retail/commercial space. The loss of retail in some neighborhoods means residents will need to travel further to access neighborhood serving retail such as grocery stores. Staff has prepared an amendment to the Zoning Code that would provide a financial incentive for smaller sites to provide more commercial/retail in neighborhoods with limited proximity to commercial/retail by reducing or eliminating the Below Market Rate (BMR) inclusionary housing requirement.
BACKGROUND
Since 1984, Sunnyvale has required new residential developments to provide a portion of the new housing units as Below Market Rate to low and moderate income households (depending on whether the housing is rental or for sale). The percentage of units has increased to 15% and the affordability levels have been modified...
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