295 S. Mathilda Avenue
Tim Kirby, City Manager
Trudi Ryan, Director of Community Development
City Council Meeting
September 9, 2025
2City of Sunnyvale – 295 S Mathilda Av – October 2025
• NW corner: S Mathilda & W McKinley
• Block 16 of Downtown Specific Plan
Very High Density Residential (since 2003)
• Affordable Housing
Good Size
Right Zoning
Good Location
• Adjacent to Low-Medium Density housing
295 S. Mathilda
3City of Sunnyvale – 295 S Mathilda Av – October 2025
• July 2023: MidPen Housing Corporation
Purchase and Sale Agreement (PSA) with Wells Fargo Bank Intent to develop 120-140 affordable rental units
City and MidPen discussed:
• Interest in City ownership of Property
• Potential partnership for a future 100% affordable housing development • August 2023: City Council
Authorized Assignment of PSA and Exclusive Negotiating Agreement (ENA) between City & MidPen:
• Purchase for $7.35M (using Housing Mitigation funds)
• ENA valid for 18 months with option for 12-month extension 295 S. Mathilda Avenue (Former Wells Fargo Site)
4City of Sunnyvale – 295 S Mathilda Av – October 2025
• Since Sept 2023: City and MidPen
Continued negotiations
MidPen has completed all tasks required by the ENA including submittal of:
• Planning application
• Financing plan
• Community Engagement Plan
ENA will expire unless both parties enter into a DDA prior to March 2026 • August 2024: City Council
Approved conditional award of $1.5M for predevelopment activities for the proposed affordable housing project
Funds have not yet been disbursed
Activity
5City of Sunnyvale – 295 S Mathilda Av – October 2025
• March 2025 submittal:
122 units (3-6 stories)
• Reduced # units from initial submittal
• Height lowered on Mathilda and near Charles St.
Project competitive for low-income tax credits
Recently scheduled:
• Public Outreach October 2
• PC Study Session October 27
• CEQA exemption: in progress
• Property located in a Highest Resource area*
Provides competitive advantage in affordable
housing financing programs
Current Status
*according to Tax Credit Allocation
Committee Opportunity Maps
6City of Sunnyvale – 295 S Mathilda Av – October 2025
• Units for unhoused populations: Intent for 25% of units Preference for unhoused families as unit sizes and design allow Final unhoused unit count depends on financing opportunities • No other specific project details (e.g, unit count, affordability requirements, and development timeline)
These items are subject to ongoing negotiations between the City and MidPen and will be described in further detail in the DDA. • About 120 units (expressed in Staff Report, not in ENA) ENA Terms
7City of Sunnyvale – 295 S Mathilda Av – October 2025
COUNCIL POLICY
1.2.7 Acquisition, Leasing and Disposition of City-Owned Real Property - Section 1: Acquisition of Real Property for Municipal Purposes
2.3.3 Strategies for Affordable Housing and the Use of Housing Mitigation Fees
GENERAL PLAN: Housing Element
• GOAL H-1 PROVISION OF ADEQUATE HOUSING SITES
Policy H-1.1 Adequate Housing Sites
Policy H-1.2 Infill Development Near Transit and
Employment Centers
Policy H-1.3 Additional Affordable Housing Opportunities in High Resource Areas
City Policy
8City of Sunnyvale – 295 S Mathilda Av – October 2025
• State laws that support higher density & affordable housing Streamlining (CEQA, public hearings, outreach)
Density bonus (location, affordability)
Waivers & concessions ( to local requirements e.g. height, setback, parking) • City Policy/Regulations
Support housing in highest resource area – especially affordable housing Private owners can take advantage of all state provisions • As property owner City has more influence on project design Partnership with housing developer is important
State and Local Housing Laws and Policies
9City of Sunnyvale – 295 S Mathilda Av – October 2025
Highlights
• Can project scope be revisited?
• Can project serve more seniors with smaller units and fewer cars? MidPen Efforts
• Formal & informal outreach
• Responded to design concerns
• Ongoing commitment to
collaborate
Neighborhood Concerns
• Other affordable housing nearby
• Height of Building
• Lack of Parking
Council Inquiries
10City of Sunnyvale – 295 S Mathilda Av – October 2025
Council Discussion & Feedback
• Questions of MidPen regarding feasibility of changes
Unit mix/sizes
Populations served
Costs for ongoing operations various resident groups
• Questions of Staff regarding agreement status and provisions Please, no comments/questions on Site Plan and Architecture Planning Commission Action, appealable to Council