REPORT TO HOUSING AND HUMAN SERVICES COMMISSION
SUBJECT
Title
Consider a Below Market Rate Alternative Compliance Plan for Residential Development at 1142 Dahlia Court. Applicant: Trumark Homes; Planning Files 2018-7989 and 2018-7451.
Report
BACKGROUND
In March, 2019, the Planning Commission approved a new residential development proposed by Trumark Homes for 58 single-family homes at 1142 Dahlia Court, aka "The Corn Palace", Planning File 2018-1055. The Conditions of Approval require compliance with the Below Market Rate Housing requirements (BMR), codified in Sunnyvale Municipal Code (SMC) Chapter 19.67 (Chapter 19.67).
SMC Chapter 19.67 requires that residential projects of eight 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. Further, it allows the applicant to apply for City Council approval of an alternative compliance option, as defined in SMC Section 19.67.090, to satisfy the BMR requirements. Additionally, the City's Administrative Policy 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.
Prior to the public hearing date for this project with the Planning Commission, the Applicant filed an application, Planning File 2018-7989, requesting City Council approval for the alternative compliance option of paying 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 approve or deny the Applicant's proposal to pay ILF to satisfy the BMR requirements for each project.
The City Council is scheduled to consider this item on May 21, 2019.
EXISTING POLICY
Sunnyvale General Plan, Housing Element
Goal A: Assist in the provision of adequate housing to meet the diverse needs of Sunnyvale's households of all income levels....
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