Sunnyvale City Council
February 10, 2026

295 S. Mathilda Avenue
ENA and Lease Extension
and Project Parameters
City Council
February 2026
2City of Sunnyvale – 295 S Mathilda Av – February 2026
• 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 City ownership and potential partnership • August 2023: City Council
 Council authorized Assignment of PSA and Exclusive Negotiating Agreement (ENA)  City purchased site for $7.3M in Housing Mitigation Funds  ENA valid for 18 months with option for 12-month extension • Short-term lease with MidPen runs concurrently with ENA • All extensions have been exercised
• ENA and lease expire 3/15/26
Exclusive Negotiating Agreement
3City of Sunnyvale – 295 S Mathilda Av – February 2026
• MidPen has completed all tasks required by the ENA
 Planning application
• Special Development Permit submitted March 2025
 Financing Plan
 Community Engagement Plan
• August 2024: City Council approved conditional award of $1.5M for predevelopment activities
 Approx. $730k in costs have been incurred (architecture, environmental)  No funds have been disbursed
Activity During ENA
4City of Sunnyvale – 295 S Mathilda Av – February 2026
• 25% set-aside for unhoused populations
 Preference for unhoused families as unit sizes and design allow • About 120 units (from Staff Report, not ENA)
• Other project parameters subject to negotiations with MidPen  Unit count, unit size, height, affordability, parking requirements, etc.  Specific project details will be set forth in DDA
ENA Terms
5City of Sunnyvale – 295 S Mathilda Av – February 2026
• Feedback from community on consistent topics
Community Feedback
Target population
(interest in senior-only
project)
Interest in smaller unit sizes
(studios and one-bedrooms)
Not enough parkingBuilding too tall,
Too many units
6City of Sunnyvale – 295 S Mathilda Av – February 2026
• March 2025: MidPen modified project in response to feedback • Remains mix of 1-BR, 2-BR, and 3-BR units
 Competitive for TCAC in Large Family category
 Requires 25% 2-BRs and 25% 3-BRs
 Property located in a Highest Resource* area
• Competitive advantage for Large Family projects
Current Proposal Status
*Resource areas determined by TCAC
Added Mobility programs to mitigate parking demand
• No-vehicle preference
• Transit passes
Reduced building height on Charles Street
• Three stories with step-backs from six stories to five stories Reduced unit count (from 126 to 122 units)
7City of Sunnyvale – 295 S Mathilda Av – February 2026
• September 2025: Council Study Session
 No formal direction, but provided feedback
Council Study Session Feedback
Interest in housing for specific populations (e.g. seniors) Interest in smaller unit sizes (e.g. studios)
• Some councilmembers expressed interest in larger family units (e.g. 2-BR and 3-BR)
Parking concerns and desire for more robust mobility plan 8City of Sunnyvale – 295 S Mathilda Av – February 2026
• October 2025: Community Meeting
Ongoing concerns about project despite recent project modifications Others support the project and recognize need for affordable housing Community Meeting Feedback
Preference for senior-only project
Preference for smaller unit sizes (e.g. studios and 1-BRs) Parking concerns
Concerns about height and number of units
Endorsed by Livable Sunnyvale, Sunnyvale Chamber of
Commerce, SV@Home, and Greenbelt Alliance
9City of Sunnyvale – 295 S Mathilda Av – February 2026
• Based on feedback City staff posed several questions to MidPen  Target population, unit mix, building height and unit count, and parking • MidPen drafted memo in response
• Staff commissioned third-party review of MidPen memo
 Economic & Planning Systems, Inc. (EPS)
• Overall EPS concurs with MidPen analysis
 Recommends minimizing changes to proposed project
MidPen Memo and Third-Party Review
10City of Sunnyvale – 295 S Mathilda Av – February 2026 MidPen Memo and Third-Party Review: Key Conclusions
100% senior project only feasible with major City subsidy ($44M) • Senior preference not viable due to fair housing laws • Half of non-age-restricted units in MidPen’s Sunnyvale projects have senior head of HH Smaller units may be added, but project is most competitive with larger units • Large Family TCAC Category: 25% two-bedrooms, 25% three-bedrooms Reduction in building height possible, but may weaken financial viability • Reduction in units could negatively affect project’s competitiveness for TCAC financing • Building height can be lowered to 35’ on Charles Street (currently 35’10”) Current 0.5 parking ratio is common for affordable projects near transit 11City of Sunnyvale – 295 S Mathilda Av – February 2026 Proposal A: Current Proposal
• 122 Units (1, 2 & 3-BR)
• 6 Stories on Mathilda
• 35 ft 10 in. on Charles
• 65 Parking Stalls (0.53 ratio)
• 25% Unhoused Set-aside
• $20.3M Anticipated City HMF
Request
• City Cost/Unit: $167k
Considerations
• Lowest per unit City subsidy
• Strong neighborhood concerns
about parking and height
• Greatest number of units
• Does not include studios
12City of Sunnyvale – 295 S Mathilda Av – February 2026 Proposal B: Five-Story Building Without Studios
• 102 Units (1, 2 & 3-BR)
• 5 Stories on Mathilda
• 35 ft on Charles
• 65 Parking Stalls (0.64 ratio)
• 25% Unhoused Set-aside
• $19.4M Anticipated City HMF
Request
• City Cost/Unit: $190k
Considerations
• Reduces height
• Slightly improved parking ratio
• Second highest per unit subsidy
• Lowest number of units
• Does not include studios
13City of Sunnyvale – 295 S Mathilda Av – February 2026 Proposal C: Five-Story Building With Studios
• 110 Units (Studio, 1, 2 & 3-BR)
• 5 Stories on Mathilda
• 35 ft on Charles
• 65 Parking Stalls (0.59 ratio)
• 25% Unhoused Set-aside
• $19.4M Anticipated City HMF
Request
• City Cost/Unit: $177k
Considerations
• Reduces height
• Slightly improved parking ratio
• Second lowest per unit subsidy
• Slight reduction in units
• Includes 24 studio units
14City of Sunnyvale – 295 S Mathilda Av – February 2026 Proposal D: 1:1 Parking Ratio
• 110 Units (1, 2 & 3-BR)
• 6 Stories on Mathilda
• 35 ft on Charles
• 25% Unhoused Set-aside
• 110 Parking Stalls (1:1 ratio)
• $23.7M Anticipated City HMF
Request
• City Cost/Unit: $215k
Considerations
• Mitigates some parking concerns
• Highest per unit City subsidy
• Strong neighborhood concerns
about height
• Significant redesign required
• Increased environmental risk
• Slight reduction in units
• Does not include studios
15City of Sunnyvale – 295 S Mathilda Av – February 2026 Proposal Summary and Comparison
Total
Units Studios
%
Studios 1BRs
%
1BRs 2BRs
%
2BRs 3BRs
%
3BRs
Estimated
Residents
Parking
Stalls
Parking
Ratio
Anticipated
City Funding
Request
City Funds
per Unit
A. 6-Story
Current
Proposal
122 0 0% 55 45% 34 28% 33 27% 315 65 0.53 $20.3M $167k
B. 5-Story
Building without
Studios
102 0 0% 47 46% 29 28% 26 25% 260 65 0.64 $19.4M $190k
C. 5-Story
Building with
Studios
110 24 22% 30 27% 28 25% 28 25% 262 65 0.59 $19.4M $177k D. 6-Story
1:1 Parking
Ratio
110 0
0% 28 25% 54 49% 28 25% 305 110 1.00 $23.7M $215k
16City of Sunnyvale – 295 S Mathilda Av – February 2026 • Proposal C is most responsive to Council and community feedback • Proposal C remains viable for affordable housing financing • MidPen prepared to revise project and enter in DDA in 6 months  Staff recommends 6-month extension to ENA and short-term lease • Option to renew for additional 6 months with City Manager approval Proposal Analysis
Includes 24 studio units while retaining large family units • Project still competes as TCAC Large Family
Reduces building height but maximizes unit count
Slight improvement to parking ratio
17City of Sunnyvale – 295 S Mathilda Av – February 2026 Recommendation
• Authorize the City Manager to negotiate and execute the Extension to the ENA and the Extension to the Short-Term Lease • Direct Staff to negotiate with MidPen on Proposal C
Alternatives 1 and 3