At its most recent Sunnyvale City Council meeting, the Council approved two development projects for below-market-rate housing and agreed to a contract with WeHOPE to expand homeless services offered by the city.
Nearly $30 million in developer fees will fund 600 below-market-rate apartments in Sunnyvale.
At its Tuesday night meeting, the Sunnyvale City Council approved three development projects through its Notice of Housing Funding Availability (NOFA) process. The council ended up allocating $29.53 million from the fund to the projects.
Ryan Dyson, a housing specialist for the city, said the NOFA helps the city “maintain a steady pipeline of affordable projects.”
The first project, set to be located at 1171 Sonora Court, is a MidPen Housing development. The $184 million project is near the Lawrence CalTrain station. It will feature 170 below-market-rate apartments, 68 of which are“extremely low income” and 34 of which are permanent supportive housing for the homeless.
According to the California Department of Housing and Community Development, “extremely low income” is 30% of area median income, which is $55,300 a year for a household of four.
A joint venture between the Idaho-based Pacific Companies and Los Angeles-based Miramar Capital will contribute another 305 below-market-rate apartments. That project will be located at 352 E. Java Ave. near Moffett Park.
The council awarded Pacific Companies $14 million in NOFA money and MidPen $16 million.
“Affordable housing is extremely expensive to develop, but it is necessary,” Council Member Richard Mehlinger said. “It is something we need to have a complete and inclusive community and to meet the needs of our residents. This is money very well spent.”
The rest of the council joined Mehlinger in glowing about the prospect of adding more housing for the poor to its portfolio.
Vice Mayor Murali Srinivasan said the projects “fill a critical need.”
“When I think about ways the city can use its resources to improve quality of life and better the lived experience of the people in our community, I can think of very few better ways to be able to do that than being able to do this,” said Council Member Alysa Cisneros.
In addition to the two major projects, another $1.5 million went to MidPen for a project proposal with another 125 below-market-rate apartments at 295 S. Mathilda Ave.
City contribution to the Sonora Court development amounts to $85,500 per apartment. Its contribution for Mathilda Avenue amounts to $70,000 per apartment while its contribution for the Java Avenue development is $45,000 per apartment.
Because of the Mathilda Avenue project’s timeline, it will come back in the next NOFA cycle in 2026. The Sonora Court development is slated to break ground in 2028, and the Java Avenue complex is slated for construction in summer 2026.
Perry Hariri, with Miramar Capital, said the city is getting a “good bang for the buck” by giving the go-ahead to its modular complex.
“We think this particular site is very suitable for affordable [housing],” he said. “We think the city is getting a great value proposition on this.”
Homeless Services Ramp Up
Also on the topic of housing, the council also unanimously approved a contract with a homeless-services provider.
A $909,780 agreement with East Palo Alto-based WeHOPE will provide hotel rooms and hygiene services for Sunnyvale homeless people. The program expands the city’s scope of homeless services.
It increases the number of full-time positions from 1.75 to 4.5, providing two case managers — two outreach employees and a half-time housing navigator. Instead of services being available Monday through Friday during normal business hours, the contract makes them available seven-days-a-week.
“We see a huge need for continuing to fund outreach services in a more robust manner,” said Amanda Sztoltz, homeless services manager.
The effort has two components.
The first is providing 30-day stays in five hotel rooms at Extended Stay, 1255 Orleans Dr. The short-term stays are designed to avoid running aground of lodgers establishing tenants rights, Sztoltz said. During that time, professionals will work with lodgers to secure them more permanent housing.
In addition to toilets and case management, a mobile hygiene service will provide a place for the homeless to shower and do laundry. The trailer will be available twice a week for four hours at two locations in Sunnyvale.
“Unhoused individuals living in their cars, in encampments and on the street have limited access to restrooms, showers and laundry,” Sztolz said. “This program allows unhoused individuals to maintain good hygiene, which has many positive impacts on a person’s dignity, confidence and ability to become housed or employed.”
The mobile hygiene trailer will provide supplies such as towels, toilet paper and laundry pods. It will allow 42 people to shower and 16 people to do laundry per session.
Drawing $651,457 of the total from the budget stabilization reserve, the one-year program has an option for four one-year extensions to be executed by the city manager. The program aims to establish a more permanent solution that is baked into city services.
Forecasting out 20 years, the program will dwindle the city’s budget stabilization reserve from $22.3 million to $11.6 million.
The last time that reserve was that low, Council Member Russ Melton said, the council was “sweating.”
“It is not so far-fetched to say something comes up that takes this $11.6 million negative,” he said.
However, Dennis Jaw, the city’s finance director, said while he would like to see that number “as high as possible,” he added that he was “comfortable” with the balance.
Adding on to Jaw’s comments, City Manager Tim Kirby said the situation is a “different fiscal picture” than previously. He said that projection is “if nothing changes.”
“A lot can change between now and then,” Kirby said. “The risk at this time is acceptable.”
Marie Bernard, executive director at Sunnyvale Community Services, vouched for WeHOPE’s ability to contribute to the “continuum of care.” She applauded the council’s receptiveness to the contract, saying she was “thrilled.”
“You’re leaning in. You’re leaning in with dollars. You’re leaning in with intent, and you’re leaning in with compassion,” she said. “This outreach is particularly helping the most vulnerable, the most chronically homeless in our community. These are our neighbors.”
WeHOPE manages two other such programs, one in San Francisco County and another San Mateo County.
Paul Baines, with WeHOPE, said his organization is also open to providing other services, such as permanent parking. He also praised the council for its commitment to the issue.
“You are doing it, and, so, hats off to you because there are some communities out there that lack that compassion and that intent,” he said.
A couple council members said they favored an update on the program’s progress prior to the end of the contract.
Council Member Alysa Cisneros said she expects the agreement to be a “fruitful partnership,” one that can create a “profound difference.” She advocated for not just compassion but for what she called“fierce compassion.”
“It is when you put your values to the test and stretch what you have along with other people to make a meaningful difference,” she said. “It can truly move mountains when you apply compassion and values and effort and intention all together, and that is what we are doing here tonight.”
WeHOPE takes over homeless services in September.
Consent Calendar Spending
The council approved the following spending in one motion via the consent calendar:
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A $140,000 increase to a contract with BSI America Professional Services, Inc. for safety and loss control services. Total contact is now $385,000.
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A $401,980 purchase order with Jack Doheny Companies, Inc. for a Ford Transit XL closed-circuit television service van.
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A $635,105 purchase order with U.S. Fleet Source for 14 Hyundai IONIQ electric service vehicles.
The council meets again 7 p.m. Tuesday, Aug. 27 in the Council Chambers at City Hall, 456 W. Olive Ave. in Sunnyvale. To submit public comments ahead of the meeting, visit http://Sunnyvale.ca.gov/PublicComments.
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