Council approves De Anza Properties' request to pay in‑lieu BMR fees while staff will confirm unit count
November 19, 2025 | Sunnyvale , Santa Clara County, California
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The City Council approved an alternative compliance plan submitted by De Anza Properties for the project at 1124 West El Camino Real, allowing the developer to pay an in‑lieu fee rather than providing on‑site below‑market‑rate (BMR) ownership units. Staff described the project's revision: the main building would contain up to 86 for‑sale condominium units and about 25 rental units, triggering a 15% inclusionary requirement for ownership units under Sunnyvale Municipal Code Chapter 19.67.
Planning staff reported the in‑lieu fee for ownership units is set at 7% of the final sale price and is collected at escrow closing; staff estimated the ownership in‑lieu fee could be roughly $16 million, with the rental portion grandfathered and subject to an impact fee estimated at about $950,000. The Housing and Human Services Commission had reviewed the alternative compliance application and recommended approval.
At public hearing applicant John Vidovich said the five single‑family homes in the rear had been created under a vested tentative map and argued they should not be charged in the same calculation; he urged council to approve the in‑lieu approach given the building type is not well suited to onsite BMR units.
Councilmember Mellinger moved to approve staff's Alternative 2 (the in‑lieu payment option) with a modification directing staff to determine whether the fee calculation should be based on 86 or 91 units; the motion carried on a roll‑call vote 5‑0 (Council members Cisneros and Lay absent). City staff and the city attorney confirmed that staff would complete the legal analysis of the vested map and unit count and return with any necessary clarifications.
Under the approved alternative compliance framework, the in‑lieu fee will be collected at the close of escrow for ownership units and prior to certificate of occupancy for rental units, per current city policy, unless and until the city modifies municipal requirements.
Planning staff reported the in‑lieu fee for ownership units is set at 7% of the final sale price and is collected at escrow closing; staff estimated the ownership in‑lieu fee could be roughly $16 million, with the rental portion grandfathered and subject to an impact fee estimated at about $950,000. The Housing and Human Services Commission had reviewed the alternative compliance application and recommended approval.
At public hearing applicant John Vidovich said the five single‑family homes in the rear had been created under a vested tentative map and argued they should not be charged in the same calculation; he urged council to approve the in‑lieu approach given the building type is not well suited to onsite BMR units.
Councilmember Mellinger moved to approve staff's Alternative 2 (the in‑lieu payment option) with a modification directing staff to determine whether the fee calculation should be based on 86 or 91 units; the motion carried on a roll‑call vote 5‑0 (Council members Cisneros and Lay absent). City staff and the city attorney confirmed that staff would complete the legal analysis of the vested map and unit count and return with any necessary clarifications.
Under the approved alternative compliance framework, the in‑lieu fee will be collected at the close of escrow for ownership units and prior to certificate of occupancy for rental units, per current city policy, unless and until the city modifies municipal requirements.
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