REPORT TO PLANNING COMMISSION
SUBJECT
Title
Forward a Recommendation to the City Council to Take the Following Actions: Introduce an Ordinance to Amend Sunnyvale Municipal Code Title 19 (Zoning) Chapter 19.67 (Inclusionary Below Market Rate Ownership Housing Program) to Convert the Below Market Rate In-Lieu Fee for Ownership Developments to a Square Footage-Based Fee; Adopt a Resolution Amending the Below Market Rate In-Lieu Fee for Rental Developments and Ownership Developments; Amend Council Policy 2.3.3 to Conduct Periodic Reviews of the City’s Inclusionary Housing Policy; and Find the Actions are Exempt from the California Environmental Quality Act (Council Priority Project HO-9)
Report
REPORT IN BRIEF
The City completed a financial feasibility study to determine whether modifications to the City’s current inclusionary housing requirement and in-lieu fees could be supported. Based on the results of the study and Council feedback, staff recommends maintaining the existing 15% inclusionary requirements for ownership and rental housing because the study does not support increasing the requirement to 20% under current market conditions.
Staff also recommends:
Converting the BMR in-lieu fee for ownership developments from a percentage of sales price to a square-footage-based fee of $93 per square foot for projects with seven or more units;
Increasing the BMR in-lieu fee for rental units to $93 per square foot for projects with seven or more units and $46.50 per square foot for projects with three to six units; and
Establishing a four-year cycle for reviewing the City’s inclusionary housing requirements and BMR in-lieu fees, with an earlier review if economic conditions warrant.
BACKGROUND
In 1980, Sunnyvale adopted its first Affordable Housing Requirements, known as the Below Market Rate (BMR) Program. The program has been amended over time in response to Council direction, changes in housing market conditions, and changes in State law. A summary of th...
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