Affordable Housing Linkage Fee: San Jose vs Sunnyvale
How do affordable housing linkage fee rules compare between San Jose, CA and Sunnyvale, CA?
San Jose and Sunnyvale have similar restriction levels.
San Jose, CA
Santa Clara County
SJMC Chapter 18.27 requires residential developers of 20 or more units to make 15% of units affordable or pay an in-lieu fee. SJMC Chapter 18.31 imposes a Commercial Linkage Fee on new office, R&D, and warehouse projects to fund affordable housing.
View full San Jose rules →Sunnyvale, CA
Santa Clara County
Santa Clara County imposes limited inclusionary housing requirements in unincorporated areas. Major SCC cities including San Jose, Mountain View, Cupertino, and Palo Alto adopted their own commercial linkage fees and inclusionary ordinances at varying rates.
View full Sunnyvale rules →Key Facts Comparison
| Fact | San Jose | Sunnyvale |
|---|---|---|
| Inclusionary code | SJMC Chapter 18.27 | - |
| Linkage fee code | SJMC Chapter 18.31 | - |
| Inclusionary trigger | 20 or more residential units | - |
| Inclusionary set-aside | 15 percent affordable units | - |
| Fund | Affordable Housing Trust Fund | - |
| SCC unincorporated rate | - | 20% inclusionary, 10+ units |
| San Jose rate | - | 15% inclusionary or in-lieu |
| Mountain View commercial fee | - | $25 per square foot |
| Palo Alto office fee | - | $40-$60 per square foot |
| Trust-fund use | - | BMR acquisition and development |
Highlighted rows indicate differences between cities.
San Jose FAQ
Does inclusionary apply to my 10-unit San Jose project?
No. SJMC 18.27 only applies to residential developments of 20 or more units. Smaller projects are exempt from inclusionary requirements but may still pay other impact fees and meet state density bonus and SB 9 requirements.
How much is the commercial linkage fee per square foot?
Rates vary by use type and are updated periodically by Council resolution under SJMC 18.31. Office and R&D rates are higher than warehouse, reflecting nexus findings. Check the Housing fee schedule for current numbers.
Can I pay the in-lieu fee instead of building affordable units?
Yes, the in-lieu fee is one of several compliance paths under SJMC 18.27 along with onsite construction, offsite construction, or land dedication. Most for-sale projects opt to pay the in-lieu fee while rental projects often build onsite.
Sunnyvale FAQ
Who pays affordable housing linkage fees in SCC?
Residential developers in unincorporated SCC and most cities pay inclusionary fees. Commercial developers in Mountain View, Cupertino, and Palo Alto pay separate housing-impact fees. San Jose imposes only inclusionary rules without commercial linkage.
Can I pay an in-lieu fee instead of building units?
Yes in most SCC jurisdictions. Cities calculate in-lieu fees based on local median sales prices and the affordability gap. Funds flow to affordable-housing trust funds rather than producing units onsite.
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