Sunnyvale awards nearly $30M to build 600 affordable homes for the unhoused
Sunnyvale's City Council has awarded nearly $30 million in funds for the construction of 600 new affordable homes for unhoused people, according to city officials.
Three new affordable housing communities will benefit from the $29.53 million funding, which is the largest award of Housing Mitigation Funds in Sunnyvale's history, city officials said in a statement Monday. The funding will also leverage more than $480 million in additional public and private financing, they added.
"This significant investment in affordable housing will serve a range of needs in our community," Mayor Larry Klein said. "These projects take a lot of hard work and depend on the strong partnerships we have with their developers. We look forward to seeing them come to fruition."
According to city officials, $14,033,000 will go to the construction of 170 affordable units at 1171 Sonora Court, which is projected to begin in 2028. Another $14,000,000 is allocated for 305 affordable units at 352 East Java Drive, the construction of which is expected to start in 2026.
The rest of the funds are earmarked for 125 housing units at 295 South Mathilda Avenue. City officials said Sunnyvale purchased the site in 2023 for $7.3 million and is leasing it to nonprofit MidPen Housing, which will also build the affordable units at Sonora Court. The construction in South Mathilda Avenue is planned to start in 2027.
According to Sunnyvale officials, they received three applications totaling $34 million in funding requests for this year's Notice of Funding Availability process.
"An evaluation committee reviewed and scored the applications. The committee then recommended funding levels for each project for City Council consideration on Aug. 13," they explained.
