RECOMMENDATIONS AFFECTING BOTH PURCHASE AND RENTAL UNITS

Items Under Review

Existing Requirements

Recommended Requirements

1

Percentage of Parcels or Units to be dedicated and maintained as BMR

10% (round down if fraction of unit is < 0.5)

15% (round down if fraction of unit is < 0.5)

2

Number of Parcels or Units that are exempt

less than 10

Less than 7

3

Developments that may elect to pay an in-lieu fee

Developments of not less than 10 and not more than 19 Parcels or Units

Developments of not less than 7 and not more than 19 Parcels or Units

4

In-lieu fee calculation

Purchase Units Fee = Number of Units x (Fair Market Value - BMR Price)

Same

Rental Units Fee = (Market Rent-BMR Rent)x (1+Bay Area CPI)²⁰

Same formula, but capitalize over 99 years rather than 20 years

5

Priority

1) Persons who live or work in Sunnyvale, 2) Persons who don't live or work in Sunnyvale

Develop a preference system based on points that includes school district employees, childcare workers and city employees.

Forfeit all monetary amounts gained from renting or selling a BMR unit

Under review:

6

Penalty for non-compliance

selling a BMR unit

RECOMMENDATIONS AFFECTING ONLY PURCHASE UNITS

Items Under Review

Existing Requirements

Recommended Requirements

1

Types of residential developments required to participate

All residential developments of ten or more parcels or units in any zoning district other than R-0, R-1, R-1.5 or R-1.7/PD

Expand the requirements to include condominium conversions. Continue to study the impact of including all residential zoning districts.

2

Deed Restriction

20 years

55 years

3

New Home Sales Price

Affordable to moderate-income households using HUD guidelines. Formula is 1.78 x (80% - 130% median income) adjusted for size of unit and amenities.

Establish income limits of 70%-120% of area median income, and modify the formula to reflect affordability based on income limits.

4

New Home Annual Sales Price Adjustment

None

1/3 Bay Area CPI

5

Formula for Sales Price of Resale Units

Use same formula, but use 1/3 Bay Area CPI to index

RECOMMENDATIONS AFFECTING ONLY RENTAL UNITS

Items Under Review

Existing Requirements

Recommended Requirements

1

Benefit Population

Very low or Lower-income Households

70% or less of median income

2

BMR Rent Calculation

Affordable to Very low or Lower-income Households. Formula is 77% median income x 25%/12 mos.

65% of median income x 30%/12 mos.

3

Deed Restriction

20 years

In perpetuity

4

Rent Increase Method

Percentage change in median income as published by HUD

Lesser of:
5% OR
Percentage increase in the rent based on the average annual rent from the Sunnyvale Vacancy and Rent Survey