Sunnyvale commission recommends City Council adopt FY 2026–27 housing budget

The Sunnyvale Housing and Human Services Commission voted 4–0 on May 28 to recommend that the City Council adopt the city’s proposed fiscal year 2026–27 budget, after a staff presentation and questions about homelessness programs and housing fund balances.

Amanda Stoultz, the city’s housing officer, told commissioners the total recommended city budget is $648,336,333 and that the housing division’s documents — included in the staff report — focus on special revenue funds such as the housing mitigation fund, the below-market-rate (BMR) fund, CDBG and HOME federal grants, and the state Permanent Local Housing Allocation (PLHA). Stoultz said the housing mitigation fund balance is “over $38 million” and noted a Notice of Funding Availability released in January 2026; if all proposed awards from that NOA are made, the fund could be reduced by roughly 40 percent.

Stoultz also said the city expects about $6.88 million in loan repayments over the next decade, which the city uses to sustain the housing mitigation fund. The recommended budget proposes 14 net new city positions across departments and an expanded, multi-decade commitment of $43 million over 20 years for homelessness services, funded from existing set-aside balances.

Commissioners pressed for implementation details. Commissioner Weiss asked which provider runs street outreach; Stoultz said the city currently contracts with the nonprofit WeH Hope (contracting since August 2024) and that the contract includes optional renewal periods. Weiss also noted that $43 million over 20 years equals about $2,150,000 per year and questioned whether that level of funding would be sufficient given needs; Stoultz said staff is preparing a strategy to address homelessness and will use that work to identify program costs, funding sources (local, state, federal) and any funding gaps. Stoultz said the homelessness strategy will return to the commission on Sept. 23 and to the City Council on Sept. 29.

On workforce housing, Commissioner Shen asked about a proposed $200,000 feasibility study to examine public-sector workforce housing. Stoultz said the $200,000 would pay a contractor to determine whether workforce housing is needed, what it would cost and how it might be funded; she added staff did not recommend moving forward with that contract at this time because of cost and emphasized that existing BMR rental and ownership programs already serve local public-sector employees, including municipal staff and some teachers.

The commission opened a public hearing on the budget; no members of the public spoke. Commissioner Duncan moved that the commission recommend council adoption of the FY 2026–27 recommended budget; Commissioner Weiss seconded. A roll-call vote recorded four yes votes (Weiss, Shen, Duncan and Chair Freedellander) with Vice Chair River absent, and the motion carried.

Next steps: City Council will hold a public hearing on the budget on June 2 and is scheduled to consider budget adoption on June 16. The commission will revisit the homelessness strategy in September as staff develops cost estimates and recommended program priorities.