Mountain View Municipal Code Div. 1 General

The cost of housing in Silicon Valley, including the City of Mountain View, is one (1) of the highest in the nation, making the region one (1) of the least affordable places to live. Housing prices and rents have increased at a significantly higher rate than general wages. The lack of affordable housing in Mountain View forces many residents to pay a very high percentage of their income for housing or to move out of the community and creating considerable commute distances, which adds to air pollution and traffic congestion in Mountain View and adjacent communities. The lack of affordable housing has also made it more difficult to recruit workers from out of the area, in general, especially workers in lower-paying jobs, potentially affecting the economic vitality and resilience of the community.

Increasing the diversity, supply, and affordability of housing is a council goal, and the below-market-rate housing program and housing impact fee programs are a necessary part of the city's efforts to meet its own housing goals as well as the regional housing needs of the Bay Area as required by state law, and are supported by the city's General Plan Land Use and Design (LUD) Policy 3.5 because it encourages residential developments serving a broad range of diverse households and incomes; and Housing Element Policies 1.5 and 2.1 because they support the development of both rental and ownership housing serving a broad range of incomes, including extremely low-, very low-, low-, and moderate-income households.

The city's affordable housing program, including the below-market-rate housing program ("BMR program") and the housing impact fee program, balances the needs of the city and the goals of our general plan while having a minimum impact on the investment interests of the landowners and developers. The program is required by the public necessity and general welfare, and promotes the orderly development of the city.

(Ord. No. 18.13, § 1, 12/10/13; Ord. No. 12.19, § 1, 6/25/19.)

For purposes of this article only, the following definitions shall be used in the interpretation and construction of this article.

a. "Addition" shall mean an extension or increase in floor area of an existing nonresidential development project subject to this section.

b. "Affordable housing" means housing which costs a very low-, low-, or moderate-income household no more than thirty (30) percent of its gross monthly income. Costs included in the calculation of income for ownership housing are monthly mortgage principal and interest payments, homeowners' insurance, property taxes and homeowners association fees, where applicable. Costs included in the calculation of income allocated to rental housing are monthly rent and utilities.

c. "Below-market-rate (BMR) unit" means an ownership or rental unit under the BMR program which is affordable to households with low or moderate incomes as defined in this chapter.

d. "Density bonus" means an approval of additional dwelling units, reduced parking, incentives and concession or waivers of development standards under City Code Sec. 36.48.65 to 36.48.95 and Government Code Section 65915, et seq.

e. "Existing floor area" means legally existing gross floor area at the time of application for a zoning permit or legally existing floor area that was demolished not more than one (1) year prior to the filing of the application for a zoning permit.

f. "Gross floor area" means the floor area enclosed within the walls of a building and measured from the outside perimeter of said walls, expressed in square feet and fractions thereof.

g. "Gross household income" means the earned and unearned household income of all adult members of the household:

1. "Above-moderate-income household" means a household whose gross income is greater than one hundred twenty (120) percent of the Area Median Income ("AMI") for Santa Clara County, adjusted for household size, and up to one hundred fifty (150) percent of the AMI, which is calculated using the one hundred twenty (120) percent AMI level published periodically by the California Department of Housing and Community Development.

2. "Moderate-income household" means a household whose gross income is greater than eighty (80) percent and up to one hundred twenty (120) percent of the AMI for Santa Clara County, adjusted for household size, that is published periodically by California Department of Housing and Community Development.

3. "Low-income household" means a household whose gross income is greater than fifty (50) percent and up to eighty (80) percent of the AMI for Santa Clara County, adjusted for household size, that is published periodically by the California Department of Housing and Community Development.

4. "Very low-income household" means a household whose gross income is fifty (50) percent or less of the AMI for Santa Clara County, adjusted for household size, that is published periodically by the California Department of Housing and Community Development.

5. If the income limit index referenced in this section, or successor indexes, are no longer published by the California Department of Housing and Community Development, then a successor index shall be selected by the city manager. In selecting the successor index, the city manager shall choose an index published by a federal, state or county agency that most closely corresponds with the previous index.

h. "Housing fund" means the City of Mountain View housing funds established pursuant to Sec. 36.40.40 and Sec. 36.40.60.

i. "Housing impact fee" means the fee established pursuant to Sec. 36.40.55 for nonresidential development projects.

j. "In-lieu fee" means a fee paid by a developer into the city's housing fund in place of providing the required below-market-rate units.

k. "Market-rate unit" means a housing unit or the legal lot for such unit offered on the open market at the prevailing market rate for purchase or rental.

l. "Mixed projects" shall mean projects containing both rental units and for-sale units.

m. "Nonresidential development project" means the construction, addition or placement of a structure used for any commercial or industrial purpose as defined in Chapter 36 of the City Code and shall include the nonresidential portion of the gross floor area in a combined or mixed-use project.

n. "Off-site" means that the affordable housing units as required by the BMR program are not part of the same residential development and not integrated with the project's market-rate units.

o. "On-site" means that the affordable housing units as required by the BMR program are integrated with the project's market-rate units and dispersed throughout the development according to the BMR program requirements. Except when required to develop senior housing in compliance with applicable laws, development of the affordable units in a separate, stand-alone structure, even if that stand-alone structure were on the same parcel or assessor's parcel number (APN) as a separate market-rate building, does not meet the definition of on-site.

p. "Resale controls" mean legal restrictions by which the price of below-market-rate units and the eligibility of purchasers or renters shall be restricted to ensure that the unit remains affordable to moderate-income households.

q. "Residential development" means any development that includes an application to the city for planning or building permits to 1) create one or more dwelling units, 2) convert nonresidential uses to residential uses, or 3) convert residential units from rental units to ownership units. As used herein, and in the BMR guidelines, "residential development" includes, without limitation, rental housing; for-sale housing; mixed-tenure housing; mixed-use residential; detached single-family dwellings; duplexes; triplexes; multiple-family dwelling structures; condominium or townhouse developments; condominium conversions; and land subdivisions intended to be sold or rented to the general public. However, accessory dwelling units, one hundred (100) percent affordable housing developments and licensed care facilities are excluded from the definition of residential development.

r. "Zoning permit" means any of the several discretionary permits described in Chapter 36 of the City Code authorizing land uses, development, construction or alteration of uses or buildings within a zoning district.

(Ord. No. 18.13, § 1, 12/10/13; Ord. No. 12.19, § 1, 6/25/19; Ord. No. 2.21, § 4, 3/9/21; Ord. No. 12.21, § 2, 12/14/21; Ord. No. 1.2025, § 1, 3/25/25.)