DRAFT 2/19/25_______
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ORDINANCE NO. _______
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SUNNYVALE 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 RELATING TO MODIFIED
REQUIREMENTS FOR QUALIFYING RETAIL
PRESERVATION PROJECTS
WHEREAS, the City of Sunnyvale desires to amend certain sections of Chapters 19.67 and
19.77 of the Sunnyvale Municipal Code to allow applicants to deviate from generally applicable inclusionary housing requirements in both the rental and ownership contexts in limited instances in exchange for providing a certain amount of commercial retail uses.
WHEREAS, the City’s General Plan seeks to encourage the development of affordable housing, especially in high resource areas, as identified by and explained in the Assessment of Fair Housing included in the Housing Element (see General Plan, p. 4-62).
WHEREAS, the development of affordable units is especially important in the high resource areas of southern Sunnyvale.
WHEREAS, the City’s existing inclusionary housing requirements, codified in Chapters
19.67 and 19.77 of the Sunnyvale Municipal Code, do not give the City flexibility to allow an applicant to reduce the required amount of affordable housing that must be included in a proposed project in exchange for preserving or creating new retail establishments in areas that are lacking in retail amenities or for which these types of place-based strategies might revitalize low resource communities.
WHEREAS, the City’s General Plan includes a number of economic development and environmental justice objectives and policies that promote a variety of commercial environments and job opportunities while also ensuring that residents have access to fresh, healthy food in various retail environments, especially in low resource areas. The City’s General Plan includes the following policies in the Land Use and Transportation Element and the Environmental Justice Element:
Policy LT-12.4 Attract and retain a diversity of commercial enterprises and industrial uses to sustain and bolster the local economy and provide a range of job opportunities.
Policy EJ-1.6 Support the development of healthy food establishments, grocery stores, and local food growers, particularly in communities that lack access to healthy food.
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Policy EJ-1.7 Support existing specialty markets and facilitate the establishment of new culturally derived markets within walkable distances to low-income communities.
WHEREAS, the City wishes to establish a limited set of circumstances in low and moderate resource areas of the City in which a proposed mixed-use development may reduce or avoid the City’s generally applicable inclusionary requirements in exchange for providing retail amenities.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SUNNYVALE DOES ORDAIN AS FOLLOWS:
SECTION 1. Section 19.67.040 AMENDED. Section 19.67.040 of Chapter 19.67 (Inclusionary Below Market Rate Ownership Housing Program) of Title 19 (Zoning) of the Sunnyvale Municipal Code is hereby amended to read as follows:
Section 19.67.040. Exemptions.
(a) The following categories of ownership housing shall be exempt from this Chapter:
(1) Ownership housing projects of fewer than seven units. (b) (2) Residential for-sale projects that have received planning approval and those with planning applications determined complete by the planning division by August 12, 2021.
(c) (3) Affordable housing projects in which one hundred percent of the ownership units to be built will be subject to a recorded restriction limiting occupancy to very low income, low income, or moderate income households at affordable sales prices.
(b) Notwithstanding the inclusionary percentage required by subdivision (a) of Section 19.67.050, ownership housing that meets all of the following criteria shall be subject to the inclusionary percentages identified in subdivision (c) of this section:
(1) The site has a General Plan land use designation of Village Mixed Use;
(2) The site is not identified in the Housing Element as available for lower income housing;
(3) The site is not located within 1,700 feet walking distance via public street from any C-1, C-2 or MP-AC zoned property (excluding properties in the same Village Center as the project site), as measured from the closest point of the C-1, C-2 or MP-AC zoned property to the farthest point of the project site;
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(4) The site is located north of El Camino Real;
(5) The site is located entirely within a Village Center, and that Village Center is no more than 6.0 acres in size; and
(6) The project has a minimum residential density of 13 dwelling units per acre (for the entire project site).
(c) Qualifying projects under subdivision (b) of this section shall comply with the following BMR requirements depending on the Floor Area Ratio of Commercial / Retail uses that will be included in the project:
Floor Area Ratio of
Commercial / Retail uses
BMR requirement
Over 5% to 10% FAR 7.5% - affordable to
Moderate income
Over 10% FAR No requirement
SECTION 2. Section 19.77.040 AMENDED. Section 19.77.040 of Chapter 19.77 (Inclusionary Below Market Rate Rental Housing) of Title 19 (Zoning) of the Sunnyvale Municipal Code is hereby amended to read as follows:
Section 19.77.040. Exemptions.
(a) The following categories of rental housing shall be exempt from this Chapter:
(1) Rental housing projects of fewer than three units.
(b) (2) Multi-family dwelling rental projects that have received planning approval and those with planning applications deemed complete by the planning division by November 8, 2019.
(c) (3) Affordable housing projects in which one hundred percent of the rental units to be built will be subject to a recorded restriction limiting occupancy to very low income or low income households at affordable rents.
(b) Notwithstanding the inclusionary percentages required by Table
19.77.070.A, rental housing that meets all of the following criteria shall be subject to the inclusionary percentages identified in subdivision (c) of this section:
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(1) The site has a General Plan land use designation of Village Mixed Use;
(2) The site is not identified in the Housing Element as available for lower income housing;
(3) The site is not located within 1,700 feet walking distance via public street from any C-1, C-2 or MP-AC zoned property (excluding properties in the same Village Center as the project site), as measured from the closest point of the C-1, C-2 or MP-AC zoned property to the farthest point of the project site;
(4) The site is located north of El Camino Real;
(5) The site is located entirely within a Village Center, and that Village Center is no more than 6.0 acres in size; and
(6) The project has a minimum residential density of 13 dwelling units per acre (for the entire project site).
(c) Qualifying projects under subdivision (b) of this section shall comply with the following BMR requirements depending on the Floor Area Ratio of Commercial / Retail uses that will be included in the project:
Floor Area Ratio of
Commercial / Retail uses
BMR requirement
Over 5% to 10% FAR 5% - affordable to Low
income; and
2.5% - affordable to Very
Low income
Over 10% FAR No requirement
SECTION 3. CEQA – DETERMINATION OF CONSISTENCY WITH CERTIFIED EIR. The City Council finds that this ordinance is consistent with the previously certified environmental impact report for the Land Use and Transportation Element of the General Plan (LUTE EIR) and does not require additional environmental review pursuant to Section 15162 of the California Environmental Quality Act (CEQA) Guidelines.
SECTION 4. CONSTITUTIONALITY; SEVERABILITY. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision or decisions shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance, and each section, subsection, sentence, Attachment 2
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clause and phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid.
SECTION 5. EFFECTIVE DATE. This ordinance shall be in full force and effect thirty (30) days from and after the date of its adoption.
SECTION 6. POSTING AND PUBLICATION. The City Clerk is directed to cause copies of this ordinance to be posted in three (3) prominent places in the City of Sunnyvale and to cause publication once in The Sun, the official publication of legal notices of the City of Sunnyvale, of a notice setting forth the date of adoption, the title of this ordinance, and a list of places where copies of this ordinance are posted, within fifteen (15) days after adoption of this ordinance.
Introduced at a regular meeting of the City Council held on _________, and adopted as an ordinance of the City of Sunnyvale at a regular meeting of the City Council held on ____________, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
RECUSAL:
ATTEST: APPROVED:
DAVID CARNAHAN
City Clerk
Date of Attestation: _______________________
LARRY KLEIN
Mayor
(SEAL)
APPROVED AS TO FORM:
________________________________________
REBECCA L. MOON
City Attorney
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