Photo courtesy of Sunnyvale

Last week, the City of Sunnyvale took significant steps to facilitate affordable housing development by committing nearly $30 million from its Housing Mitigation Funds. These funds, which are dedicated to projects that will be home to many of the lowest-income households for a minimum of 55 years, will support the development of three major affordable housing projects:

• Sonora Court: $14 million (including $12.5 million to buy the lot) has been allocated to fund 170 affordable units at 1171 Sonora Drive, near the Lawrence Caltrain Station. This project, developed by MidPen Housing, will include 34 permanent supportive housing units for formerly unhoused residents. Construction is slated to begin in 2028.
• Mathilda Avenue: $1.5 million will support the creation of 125 affordable units in downtown Sunnyvale, with approximately 32 units reserved for individuals experiencing homelessness. Also developed by MidPen Housing, this project is expected to break ground in 2027.
• First Moffett Park Project: $14 million will fund 305 affordable units as part of the Moffett Park Specific Plan. This project, developed by The Pacific Companies and Miramar Capital, represents the first residential component in a comprehensive plan to revitalize the area with new housing, office spaces, and green facilities.

In addition to funding allocations, Sunnyvale is making affordable housing development more efficient by leveraging city-owned land. By purchasing land for affordable housing projects, the city ensures long-term affordability, streamlines the development process, and reduces the costs developers incur securing sites, making projects more financially feasible. For instance, Sonora Court will be the sixth 100% affordable housing development on city-owned land. Leveraging public land, whether it is longer-term “land banking,” where the city actively acquires properties and partners with developers to convert them into affordable housing, or planning for land dedications to ensure new growth areas are accessible to all through the integration of affordable housing underscores the city’s commitment to planning for affordable housing. 

These investments are vital for the city to add over 6,000 affordable new homes by 2031. These approaches help address Sunnyvale’s immediate regional housing needs and actively aid the city in achieving its long-term housing goals. Continued local investments like these, supported by strategic collective efforts, will be crucial in expanding affordable housing opportunities for all.