2023-2031
Housing Element Update
City Council
Study Session
March 14, 2023
2City of Sunnyvale – 2023-2031 Housing Element Update – City Council Study Session – March 2023 Agenda
• Housing Element Overview
What is the Housing Element?
Housing Element Contents
Regional Housing Needs Allocation
Fair Housing
Timeline
Compliance
• Three Key Topics for Feedback
Lower-Income Sites in Higher-Resource
Areas
Missing Middle Housing
Park Dedication Requirement
Source: Fletcher Studio
Edwina Benner Plaza
3City of Sunnyvale – 2023-2031 Housing Element Update – City Council Study Session – March 2023 What is the Housing Element?
• Required Element of General Plan
Housing needs of community
Accommodate City’s fair share of
regional housing
• Required Review and Certification
California Department of Housing
and Community Development (HCD)
4City of Sunnyvale – 2023-2031 Housing Element Update – City Council Study Session – March 2023 • Updated every 8 years
Only Element with State-mandated update timeline
Only Element with State-mandated certification
1999
What is the Housing Element? continued
5City of Sunnyvale – 2023-2031 Housing Element Update – City Council Study Session – March 2023 Housing Element Contents
Policies
and
Programs
Needs
Assessment
Fair
Housing
Analysis
Sites
Inventory
Constraints
Evaluation
• Housing Needs Assessment
• Fair Housing Analysis
• Evaluation of Previous Housing Element
• Housing Sites Inventory
• Analysis of Constraints
• Policies and Programs
6City of Sunnyvale – 2023-2031 Housing Element Update – City Council Study Session – March 2023 Regional Housing Needs Allocation (RHNA)
Income Category
2015-2023
RHNA
(Housing Units)
2023-2031
RHNA
(Housing Units)
Percent
Increase
Very Low Income
(<50% of Median Income)
1,640 2,968 81%
Low Income
(51-80% of Median Income)
906 1,709 89%
Moderate Income
(81-120% of Median Income)
932 2,032 118%
Above Moderate Income
(>120% of Median Income)
1,974 5,257 166%
TOTAL 5,452 11,966 119%
Source: Association of Bay Area Governments, 2023-2031 RHNA Plan 7City of Sunnyvale – 2023-2031 Housing Element Update – City Council Study Session – March 2023 Fair Housing
AB 686 expands duty to
affirmatively further fair housing
(AFFH)
Housing Elements are required to:
• Equitably include community
in outreach process
• Assess fair housing
• Evaluate and address how sites
will AFFH
• Adopt policies and programs
that remediate identified fair
housing issues
Fair Housing
Enforcement and
Outreach Capacity
Segregation and
Integration
Racially and Ethnically
Concentrated Areas of
Poverty and Affluence
Disparities in Access to
Opportunity
Disproportionate
Housing Needs and
Displacement Risks
8City of Sunnyvale – 2023-2031 Housing Element Update – City Council Study Session – March 2023 Housing Element Timeline
Jul 8, 2022 Draft submitted to HCD
Oct 6, 2022 HCD Comment Letter
Oct 2022 – Mar 2023 Revisions to Draft
Jan 31, 2023 HCD Adoption Deadline
Feb 2023 Stakeholder Meetings
Mar 14, 2023 City Council Study Session
Apr 2023 Complete Revised Draft, send to HCD
Apr – May 2023 60-day HCD Review
9City of Sunnyvale – 2023-2031 Housing Element Update – City Council Study Session – March 2023 Housing Element Compliance
• Consequences of late adoption
Builder’s Remedy
Adoption required for some State funding programs
• One Bay Area Grant (OBAG)
• Affordable Housing funding
• No Santa Clara County jurisdictions have been
certified by HCD
Some have adopted their drafts without certification
10City of Sunnyvale – 2023-2031 Housing Element Update – City Council Study Session – March 2023 Lower-Income sites in Higher-Resource Areas
Missing Middle Housing
Park Dedication Requirement
Three key topics for Council feedback…
11City of Sunnyvale – 2023-2031 Housing Element Update – City Council Study Session – March 2023 Lower-Income Sites in Higher-Resource Areas
Fair Housing
Assessment of Sites
Inventory
• 72% of lower-
income sites in MPSP
Classified as low
resource
• 16% of lower-income
sites in higher
resource areas
12City of Sunnyvale – 2023-2031 Housing Element Update – City Council Study Session – March 2023 Current Draft – Program H3:
Increase Affordable Housing In High Opportunity Areas
Lower-Income Sites in Higher-Resource Areas
• Identify additional
capacity for high density
residential in high
resource areas, such as
Village Centers
• Objective: Rezone to
create 100
lower-income
units in higher resource
areas
Source: MidPen Housing
Moulton Plaza
13City of Sunnyvale – 2023-2031 Housing Element Update – City Council Study Session – March 2023 Lower-Income Sites in Higher-Resource Areas
• Increase H3 objective to
1,500 lower-income units
• Increase density in Village
Centers to 30 du/acre
30 du/acre = “default density”
for lower-income housing
• Consider additional southern
sites for residential
Advocate Letters
Source: MidPen Housing
Garland Plaza
14City of Sunnyvale – 2023-2031 Housing Element Update – City Council Study Session – March 2023 Lower-Income Sites in Higher-Resource Areas
• Address the isolation of the lower-income RHNA in
Northern Sunnyvale and lack of lower-income sites in
Southern Sunnyvale
• Include programs and strategies to Affirmatively
Further Fair Housing (AFFH)
• Address public comments on housing in high resource
areas (e.g. southern Village Centers)
HCD Comment Letter
15City of Sunnyvale – 2023-2031 Housing Element Update – City Council Study Session – March 2023 Council Feedback Requested
Lower-Income Sites in Higher-Resource Areas
• Revise Program H3 to
add/modify sites?
• >30 du/ac
• ~750 lower-income units
Existing Village Centers
New Village Centers
Residential sites
Retail/Office sites
16City of Sunnyvale – 2023-2031 Housing Element Update – City Council Study Session – March 2023 Missing Middle Housing
• “Affordable by design” housing types
DUOs, triplexes, fourplexes, and single-family units on smaller lot sizes
Source: Opticos Design
17City of Sunnyvale – 2023-2031 Housing Element Update – City Council Study Session – March 2023 Missing Middle Housing
• Promotes housing
opportunity in high
resource areas
• Current zoning code may
be a constraint
• Current Housing Element
draft does not
include
MM program
Was part of 2020
Housing Strategy
Source: Google Street View
Missing Middle in Sunnyvale
18City of Sunnyvale – 2023-2031 Housing Element Update – City Council Study Session – March 2023 Missing Middle Housing
• Support policies that encourage missing middle
housing types
• Establish development standards for missing middle
Encourage missing middle in higher opportunity areas
• Consider and address public comment on missing
middle
Advocate Letters
HCD Comment Letter
19City of Sunnyvale – 2023-2031 Housing Element Update – City Council Study Session – March 2023 Missing Middle Housing
• Create new missing middle housing program?
Smaller lot sizes, modified setbacks, expedited review, etc.
Allow smaller lot sizes in R-1 and R-0 areas
Ministerial approval process for certain types
Council Feedback Requested
EXAMPLE
• 2 R-0 lots (60’ x 100’)
• 4 MM lots (60” x 50’)
• 45% FAR Maximum
• One shared driveway
• Attached or Detached
• Similar to SB9
20City of Sunnyvale – 2023-2031 Housing Element Update – City Council Study Session – March 2023 Park Dedication Requirement
• Dedication of Park Land or payment of in-lieu fee
• Applies to net new units:
Multiple-family rental projects
Subdivisions
• Exclusions:
Affordable rental housing units
ADUs/JADUs/Duplex/Single-family house on existing lot Parkland Dedication
Standard
(per 1,000 persons)
Fair Market
Value
(per SF)
Current In-lieu
Fee
(per Unit)
Sunnyvale 5 acres $185 $72,527 - $110,806
Mountain View 3 acres $150 - $310 $48,090 - $81,022
Palo Alto 5 acres $131 $42,468 - $69,483
Santa Clara 3 acres $111 - $138 $37,609 - $65,263
21City of Sunnyvale – 2023-2031 Housing Element Update – City Council Study Session – March 2023 Park Dedication Requirement
• Review and reconfirm
relationship between services
and required fees
• Ensure fees are not constraint
on housing production
• Consider if reductions to Park
In-Lieu fee are appropriate
Current Draft – Program H18:
Review Development Fees
Source: Magical Bridge Foundation
Fair Oaks Park
22City of Sunnyvale – 2023-2031 Housing Element Update – City Council Study Session – March 2023 Park Dedication Requirement
• Park Dedication In-Lieu Fee constrains SB 9 lot splits • Allow exemption for SB 9 projects
• Analyze Park Dedication Requirement as constraint on
development
• Include more specific commitments in fee program
• Address public comments on Park In-Lieu Fees
Advocate Letters
HCD Comment Letter
23City of Sunnyvale – 2023-2031 Housing Element Update – City Council Study Session – March 2023 Park Dedication Requirement
• Staff to add expanded analysis
in next draft of Park
Dedication requirement since
2015
Over 4,400 units entitled
Over $60 million in fees used
for improvements
11.5 acres of parkland
dedicated
• Primarily in moderate resource
areas
6.5-acre Muwékma Park
24City of Sunnyvale – 2023-2031 Housing Element Update – City Council Study Session – March 2023 Park Dedication Requirement
• Add new program to review Park Dedication
Requirement?
Consider new exemptions, discounts, or reductions?
• SB 9 lot splits
• BMR ownership units
Identify grants and other funding sources for open
space acquisition?
Other actions?
Council Feedback
25City of Sunnyvale – 2023-2031 Housing Element Update – City Council Study Session – March 2023 Discussion
Revise current program to add/modify sites in
higher resource areas?
Create new Missing Middle program?
Add new program to review Park Dedication
requirement?