• City of Sunnyvale Adopts Rental Housing Impact Fee

  • On March 17th, the Sunnyvale City Council adopted a rental housing impact fee for new market rate development and directed Staff to return in April with an ordinance to set the new fee at $17 per square ft. of habitable new development. The draft ordinance will also include provisions for the adopted fee level to be adjusted annually for inflation, provide for an in lieu unit credit program, and define the effective date of the law. The draft ordinance will also contain a provision to review the rental housing impact fee in two years to address any issues that may arise. Despite inveigling from the City’s Housing Commission, Planning Commission and affordable housing advocates to vote for a much higher fee, the Council adopted fee level of $17 was the lowest recommended fee in the staff report, reflecting a growing trend in the Southbay that has seen San Jose and Mountain View adopt $17 and Fremont adopt $17.50. To read the Staff Report and other associated documents including BIA Bay Area submittals click here.

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