Last week, SV@Home submitted a letter to the Sunnyvale City Council supporting a proposed ordinance to reduce retail requirements for 100% affordable housing developments along El Camino Real. In our letter, we praised the City for taking bold action to expand affordable housing opportunities in high-demand areas where the need is most pressing. Additionally, we raised concerns about the remaining retail requirements for larger parcels of land, highlighting that this could create unnecessary barriers to affordable housing development.

We are thrilled to report that the Sunnyvale City Council unanimously approved the ordinance at the October 15th meeting. This decisive action represents a significant win for affordable housing development in Sunnyvale. We sincerely thank the City Council for their leadership and the City staff for their dedication to addressing Sunnyvale’s housing needs.

The policy aims to alleviate a critical financial burden for affordable housing projects by removing the requirement for ground-floor retail space. Minimum retail mandates significantly increase construction costs, which was particularly evident in Sunnyvale’s El Camino Specific Plan Area. Unlike market-rate projects, affordable housing developments lack the budget to subsidize retail space and face heightened risks of vacant storefronts. By eliminating this requirement for smaller parcels, the ordinance ensures more efficient use of resources and allows for more housing units to be built. This policy results in creating more, higher-quality homes. While we supported this change, SV@Home advocated for extending it to all 100% affordable developments, regardless of parcel size, as larger sites over 3 acres face the same financial challenges and offer the same opportunity to maximize building square footage. Expanding the policy would further accelerate Sunnyvale’s progress toward its housing goals by fostering more cost-effective development.