The Sunnyvale Sun
News
Sunnyvale falls short of affordable housing numbers
By Cody Kraatz
The city of Sunnyvale fell short of its "fair share" of new affordable housing between 1999 and 2006, according to a June report from the Association of Bay Area Governments.
As mandated by the state, ABAG allocates the number of new affordable housing units each city needs to provide to meet the housing needs of the Bay Area.
Of its allocations from 1999 to 2006, Sunnyvale has permitted only 7 percent of its very low-income housing, 16 percent of low-income housing, 18 percent of moderate-income housing and 112 percent of above moderate-income housing, adding 2,167 affordable units.
"The numbers are really high for every city, not just Sunnyvale," said Hanson Hom, director of community development, noting that the ABAG numbers do not include affordable housing the city preserved from changing to market-rate housing. "It's very difficult for cities to meet those numbers."
Few cities in Santa Clara County met their allocations, but some did far better. Milpitas, with allocations close to Sunnyvale's, provided a greater percentage of its allocation of very low and low income housing.
Sunnyvale City Council candidates recently debated whether the city should do more, but few suggested specific new policies. Who is responsible for affordable housing in Sunnyvale remains a topic of debate.
"[The city's] main role is not to provide low-cost housing," said Nancy Tivol,
executive director of Sunnyvale Community Services, which provides emergency funds for renters who would otherwise be evicted. "If it was, then I'd love it, but that's not their primary purpose."
Sunnyvale gives SCS about $80,000 per year, half from federal funds and half from general funds, she said.
"I'd like to see the city do more," said Dixie Carney, who is running against incumbent Councilman Ron Swegles for seat 6, at an Oct. 10 candidates forum.
She declined to comment specifically on what the city should do, but said she is open to ideas. Swegles said he plans to initiate a study of possible new affordable housing programs.
"We need more alternatives," he said, mentioning rehabilitation of older homes as one possibility.
Other incumbents said they think the city should fund outside nonprofit groups and let them take the lead.
"Those agencies can do a lot better than we can. They can leverage a lot more resources than we can," said Councilwoman Melinda Hamilton, who is facing Pat Meyering for seat 7 in the election, at the Oct. 10 forum.
Meyering, a Sunnyvale Housing and Human Services commissioner, questioned cuts to housing services that were accompanied by raises to city management, as did Dave Whittum, who is running against incumbent Dean Chu for seat 4.
"It is my opinion that we all have an obligation to help those in need," said Meyering at the forum.
Because Sunnyvale is largely built out, with little open space, city officials say most new housing has to be higher-density infill, some near downtown and some in the north of the city, where conversions from industrial uses are encouraged.
However, the city must maintain a balance of industrial and housing uses.
"It would be really easy to convert large pieces of land to residential, but you end up shooting yourself in the foot. You end up not having anywhere to put industry when it comes back," said John Pilger, Sunnyvale spokesman.
ABAG anticipates steady employment growth in Sunnyvale and infill development, particularly near downtown and transit corridors, is ideal because higher density corresponds to lower cost.
But the city does not build housing itself and can only encourage and enable developers to build affordable housing.
"We can tell you where it can be built," said Trudi Ryan, Sunnyvale planning officer. "We just can't compel anyone to build it."
The city's tool with teeth is a municipal ordinance requiring that 12.5 percent of ownership developments with nine or more units, and 15 percent of rental developments, must be sold or rented below market rates.
For example, the Sunnyvale Town Center redevelopment project includes 292 housing units for ownership, and 37 will be sold at below market rates. But because there are no rentals, the town center will not attract very low-and low-income residents.
"I think it's healthy to have a mix of income, of ages, of ethnicity in any community, in any given area," said Tivol. Upcoming proposals for the Town and Country downtown redevelopment may include rentals.
The city's Below Market Rate Home Ownership Program manages a waiting list of more than 100 prospective homeowners who were selected from about 1,000 applications submitted in January. It gives priority to teachers, city employees and Air National Guard members.
Households earning between 70 percent and 120 percent of the area median income (AMI), about $74,000 to $127,000 for a family of four, could qualify for a two-bedroom home, which sold for $219,000 and a $13,000 down payment in 2006.
However, many residents make less than 70 percent of the AMI. A very low or low-income family of four earns about $32,000 and $53,000 per year, respectively.
"Our business is booming, and that's not good," said Tivol, citing families who have about $30 left at the end of the month, and are then hit with $10,000 in medical expenses. "If we don't help, it's going to be a bigger problem with a more expensive solution."
For renters, the 15 percent BMR requirement on new developments has provided 247 units throughout the city. Apartment managers maintain their own waiting lists.
Sunnyvale has also contributed about $1.6 million to the Housing Trust of Santa Clara County since 2001. The nonprofit group uses that money to access private and public funding sources for a high return on investment, and returns what Sunnyvale gives through projects in the city.
"They use it very wisely," said Swegles, who sits on the Housing Trust board. He points to two projects in Sunnyvale with 167 units where the Housing Trust used $1 million in loans to gather $32.7 million.
