REPORT TO PLANNING COMMISSION
SUBJECT
Title
Introduce an Ordinance to add Chapter 19.77 ("Inclusionary Below Market Rate Rental Housing") to Title 19 ("Zoning") of the Sunnyvale Municipal Code to create an Inclusionary Rental Housing Program, and adopt a Resolution to amend the Master Fee Schedule and create a Rental Housing In-Lieu Fee.
Report
REPORT IN BRIEF
Since 1980, Sunnyvale has implemented an inclusionary housing requirement that a certain percentage of new residential ownership and rental development be deed restricted as affordable housing to low or moderate income households. In 2009, the California court case Palmer/Sixth Street Properties, L.P. v. City of Los Angeles eliminated rental housing inclusionary programs across the state. For-sale inclusionary programs were not affected by the court decision. Since that time, Sunnyvale has not been able to require any new inclusionary housing rental units but continued to enforce existing rental inclusionary units already in the program pursuant to SMC Chapter 19.69. In addition, the City has approved a number of residential developments that took advantage of the State Affordable Housing Density bonus (and included deed restricted affordable units) or imposed a Rental Housing Impact Fee to be used to support non-profit developers in the creation of new affordable housing. In 2017, California's Governor approved legislation which once again allowed California jurisdictions to implement inclusionary rental housing programs (AB 1505). This legislation is sometimes referred to as the "Palmer fix" as it relates to the court decision referenced above. During that same year, the Sunnyvale City Council approved Study Issue 17-09, the 2017 Housing Strategy, of which one goal is to enact a rental inclusionary ordinance consistent with AB 1505.
After analyzing neighboring jurisdictions' rental inclusionary programs and holding several community workshops and stakeholder meetings, staff is recommending the Counc...
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