Mountain View City Zoning Code

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.)

The words and terms used in this chapter shall have the meaning indicated as follows, unless the context clearly indicates otherwise:

a.

Objective standard. The basic requirement of the BMR program is the provision of BMR units on-site and integrated with market-rate units for both rental and ownership projects.

b.

Percentage requirement. All residential development as defined in Sec. 36.40.05 are subject to the BMR program and shall provide at least fifteen percent (15%) of the total number of dwelling units as affordable units.

1.

Ownership units. All nonexempt ownership residential developments other than rowhouses and townhouses (as defined in Article IV of Chapter 36 of the city code) shall include at least fifteen percent (15%) of the total number of ownership dwelling units within the development as units affordable to Moderate-income households. The affordable ownership units must be provided at a minimum of two (2) income levels, with a resulting income level equal to or less than a weighted average of one hundred percent (100%) of the AMI when considering all of the affordable ownership units cumulatively. Rowhouses and townhouses in residential ownership developments shall be subject to a twenty-five percent (25%) on-site BMR requirement, with fifteen percent (15%) of the units as affordable to an income level equal to or less than a one hundred percent (100%) AMI weighted average with a range of Low-income household and Moderate-income household units; and a ten percent (10%) of the units at a one hundred thirty-five percent (135%) AMI weighted average with a range of units above one hundred twenty percent (120%) and up to one hundred fifty percent (150%) AMI.

2.

Rental units. All rental residential developments shall include at least fifteen percent (15%) of the total number of rental dwelling units within the development as units affordable to Low-income households and Moderate-income households. The affordable rental units must be provided at a minimum of two (2) income levels, with a resulting income level no greater than a weighted average of sixty-five percent (65%) of the AMI when considering all of the BMR rental units cumulatively, except as set forth in this article.

c.

Size of project. The BMR requirement shall apply to all new residential developments and applicable condominium conversions.

d.

In-lieu fees for fractions of units. Residential projects with less than seven (7) units shall have the option of paying a fee in lieu of the fractional BMR unit. A residential project with seven (7) units or more may pay an in-lieu fee for fractional units when the BMR obligation results in a fractional BMR unit that is less than 0.5 (i.e., less than half a unit). A fractional unit equal to 0.5 or greater shall be rounded up and the project must provide one (1) BMR unit on-site to satisfy the fractional obligation. Payment of an in-lieu fee for qualifying fractional units shall be made in full prior to issuance of the project's first building permit, and shall be based on the fee level equivalent to providing the BMR units on-site and as published in the master fee schedule. The Housing Director or designee shall be authorized to adjust the rental and ownership fees annually based on the California Construction Cost Index (CCCI), as recorded by Engineering News Record and reported regularly by the California Department of General Services.

e.

Concurrent development of BMR on-site units. All BMR on-site units in a residential development and phases of a development shall be constructed concurrently with or prior to the construction of market-rate units.

f.

Location and design of BMR on-site units. All BMR units shall be reasonably dispersed throughout the project and consistent with federal and state fair housing laws, have a distribution of units by number of bedrooms proportionate to the market-rate units, and be of comparable size to the market-rate units based on net habitable square footage of the units, except that affordable units for seniors shall comply with applicable requirements for senior housing. For purposes of this subdivision (f), "net habitable square footage" shall mean the floor area enclosed within the walls of structure for sleeping, eating or cooking, and living, including the floor area for bathrooms, toilet compartments, closets, halls, and interior storage areas. Net habitable square footage shall be measured from the outside perimeter of the unit's walls expressed in square feet and fractions thereof. Garages, exterior storage, common circulation areas shared between more than one unit, patios and other outdoor spaces (whether or not such spaces are enclosed) shall not be part of net habitable square footage. The actual location of a BMR rental unit within a complex shall be permanently assigned to a particular dwelling unit.

The exterior design of the BMR units shall be consistent with the market-rate units in the project and be comparable in terms of interior design, appearance, materials, and quality of finish. However, the BMR units may differ from market-rate units in the project by using lower-cost alternatives to certain amenities considered to be luxury items. BMR units shall have the same access to project amenities and recreational facilities as market-rate units.

g.

Qualifying households. All BMR rental units shall be rented only to qualified Low-income households or Moderate-income households, and all BMR ownership units shall be sold only to qualified Moderate-income households, except households for rowhouses/townhouses shall qualify based on the BMR requirement as referenced in this Sec. 36.40.10. Rents, sales prices, and eligible household sizes of BMR units shall comply with the requirements pursuant to the BMR guidelines.

Preference is given to eligible applicants for a BMR unit if they live or work in the City of Mountain View, unless otherwise prohibited by state or federal law or other fair housing restrictions.

h.

Term. BMR units subject to this division shall be maintained as affordable housing in perpetuity, unless (i) the BMR units are delivered through an alternative means of compliance and are located in a separate building which shall have one hundred percent (100%) affordable housing, and a different period of time is required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program, provided that such term shall be no less than fifty five (55) years, or (ii) otherwise provided by state law.

i.

Density bonus and replacement units. Compliance with the provisions of this article may be applied towards a request for a density bonus and/or towards any obligation under state law to replace housing units in connection with a project, provided that the affordable units meet the stricter of the BMR program requirements and the density bonus law and/or replacement housing requirements, as applicable.

j.

Administrative guidelines. The Housing Director may issue guidelines consistent with the provisions of this Article for the purpose of carrying out and enforcing the provisions of this Article.

k.

Administration. The Housing Department or its designee shall administer the BMR program and may issue written procedures to implement the BMR program and guidelines.

l.

Accessible or Adaptable BMR Units. If a development includes both (i) at least one accessible or adaptable unit, and (ii) at least one BMR unit, then at least fifteen percent (15%) of the BMR units or one BMR unit, whichever is greater, must be accessible or adaptable. If the development's obligation to provide at least fifteen percent (15%) of the BMR units as accessible or adaptable results in a fractional obligation that is less than 0.5 (i.e., less than half a unit), such fractional obligation shall be rounded down after the first accessible or adaptable BMR unit. An obligation to provide a fractional accessible or adaptable BMR unit equal to 0.5 or greater shall be rounded up and the project must provide one (1) accessible or adaptable BMR unit to satisfy the fractional obligation.

For purposes of this subdivision (l), "accessible" and "adaptable" shall mean standards for features or fixtures, designs, or other improvements, which are equal to or exceed the minimum requirements of Chapter 11A of the California Building Code or any successor legislation.

(Ord. No. 18.13, § 1, 12/10/13; Ord. No. 3.18, § 1, 2/27/18; Ord. No. 12.19, § 1, 6/25/19; Ord. No. 1.2025, § 2, 3/25/25; Ord. No. 9.2026, § 2, 6/9/26.)

The monthly rental rate for each BMR unit shall be based on the designated income level for the BMR unit and household size as established by the City of Mountain View BMR program guidelines. The units shall be designated for Low-income households and Moderate-income households, with a cumulative weighted average of no more than sixty-five (65%) percent (65%) AMI, and rent shall be based on no more than thirty percent (30%) of the designated income level for the BMR unit according to the procedures set forth in the BMR guidelines. The rent range for Low-income households and Moderate-income households may be adjusted annually to reflect adjustments in the gross household income levels for Santa Clara County published periodically by the California Department of Housing and Community Development.

(Ord. No. 18.13, § 1, 12/10/13; Ord. No. 12.19, § 1, 6/25/19; Ord. No. 1.2025, § 3, 3/25/25; Ord. No. 9.2026, § 2, 6/9/26.)

The following provisions shall apply to rent increases on BMR units.

a.

The rental rate for an occupied BMR unit shall not be increased more than three percent (3%) within a twelve-month period. This provision shall not prohibit a landlord from increasing the rental rate on a vacant BMR unit more than 3% to align the rental rate with current applicable State Income Limits set by the California Department of Housing and Community Development.

b.

The rental rate for an occupied BMR unit shall not be increased more than one time in a twelve-month period.

c.

A tenant shall be provided written notice of any increase in the rental rate for their unit no less than thirty (30) days prior to the effective date of the rent increase. The notice shall at a minimum include the new rental rate and the date the new rate will become effective. Written notice of a rent increase shall be hand-delivered to the tenant or served by U.S. mail in accordance with Section 1013 of the California Code of Civil Procedure. A tenant shall not be liable for any rent increase imposed without notice delivered in accordance with this subsection.

d.

A landlord who demands, accepts, receives, or retains any payment of rent in violation of this section shall be liable in a civil action to the tenant from whom those payments are demanded, accepted, received, or retained for all of the following:

1.

Injunctive relief.

2.

Damages in the amount of the rent demanded, accepted, received, or retained in violation of this section.

3.

In the court's discretion, reasonable attorney's fees and costs.

(Ord. No. 1.2025, § 4, 3/25/25; Ord. No. 9.2026, § 2, 6/9/26.)

A project's BMR ownership units shall be sold at prices affordable to Moderate-income households with a cumulative weighted average of no more than one hundred (100%) AMI, except sales prices for rowhouses/townhouses shall be based on the BMR requirements for such developments as referenced in this Sec. 36.40.20, and ownership sales prices shall be based on the selected income level for each unit and the presumed household size that corresponds with the various unit sizes as set forth in the BMR guidelines. The eligible household income range may be adjusted annually to reflect adjustments in the median household income level for Santa Clara County published periodically by the California Department of Housing and Community Development. The sales price for each BMR unit shall result in a total monthly payment that shall not exceed thirty percent (30%) of the AMI level designated for that unit adjusted by unit size and presumed household size, and includes mortgage, taxes, utilities, HOA dues, insurance and private mortgage insurance.

(Ord. No. 12.19, § 1, 6/25/19; Ord. No. 1.2025, § 5, 3/25/25; Ord. No. 9.2026, § 2, 6/9/26.)

All BMR units shall be subject to deed restrictions, covenants, resale restrictions, and other applicable conditions and documentation to ensure compliance with the BMR program, and which includes an option that entitles the city or its designee the first right to purchase a BMR ownership unit at the lower of the following purchase prices:

a.

Market value;

b.

The purchase price paid by the seller, plus one-third of the increase (during the period of seller's ownership) in a CPI, All Urban Consumers, San Francisco-Oakland-San Jose, published by the U.S. Department of Labor, Bureau of Labor Statistics; or

c.

An amount equal to the price affordable to household earning the income level specific to the BMR unit.

An exception to the city-imposed restriction that the BMR unit be sold to a city-approved BMR household may be granted if:

1.

The applicant demonstrates the inability to obtain a qualified buyer within a one hundred eighty (180) day period; and

2.

The city decides not to exercise its option to purchase the BMR unit. The seller will be entitled to the lowest purchase price listed above. The balance of the proceeds shall be paid to the City of Mountain View to be deposited in the city's housing fund. The deed restrictions shall prohibit sales or transfers of the property except with the written consent of the city and at a price listed above.

Owners of BMR ownership units shall provide the city/designee a notification of intent to sell prior to listing the unit. If an owner intends to refinance, change title, or transfer ownership of the BMR ownership unit, the owner shall notify and receive approval from the city/designee prior to initiating a refinance, title change, or transfer of ownership. The city is entitled to pursue all available remedies against an owner if an owner fails to notify and receive approval from the city/designee, including the city's exercise of its option to purchase the BMR ownership unit or a city action to foreclose on the BMR ownership unit under the city's deed of trust.

The BMR ownership deed restrictions and conditions shall contain such other provisions as are considered necessary by the city to implement the BMR program and the city may require that additional notices or other document(s) be recorded. A reference to the deed restrictions and conditions shall be included in all deeds or conveyances of BMR units.

(Ord. No. 18.13, § 1, 12/10/13; Ord. No. 12.19, § 1, 6/25/19; Ord. No. 9.2026, § 2, 6/9/26.)

The basic objective standard of the program is the creation of residential developments with affordable units integrated on-site with market-rate residential units. As an alternative to building the affordable housing units on-site, developers of market-rate residential projects, regardless of whether such projects provide rental units or ownership units, may submit a request to meet their BMR program obligations through the dedication of land, off-site development of BMR units and/or the acquisition and preservation of existing housing units to be converted into deed-restricted BMR units.

The applicant has the burden of demonstrating that the request for an alternative compliance measure meets the findings criteria set forth below. The alternative compliance measure shall be approved if each of the criteria herein are satisfied.

a.

General Requirements.

1.

Compliance Plan. A request for alternative compliance measure must include a BMR Compliance Plan ("Compliance Plan"). The Compliance Plan shall include: (i) a description of the proposed alternative means of compliance, with details including but not limited to the number, size, density, and affordability of BMR Units, as applicable; (ii) pro forma financial statements; (iii) a financing plan; (iv) a feasibility analysis that demonstrates the applicant will successfully deliver the proposed BMR alternative, including through financial contributions as applicable; (v) an equivalency analysis that demonstrates that the value of the proposed alternative is no less than the value of providing on-site BMR units; (vi) supporting documentation as required by the BMR guidelines. Additionally, if the proposed alternative involves partnering with another entity, the Compliance Plan shall include information that demonstrates the partnering entity meets the partner requirements listed in Table 36.40.30-2 or Table 36.40.30-3, as applicable. A Compliance Plan with the information required herein shall be submitted in order for informal planning review to be deemed complete.

2.

Findings. A request for alternative compliance may only be granted if the Housing Director makes each of the following findings:

(a)

Equivalency. The value of the proposed alternative compliance measure is no less than the cost of providing BMR units on-site, based on the fee level equivalent to providing the BMR units on-site and as published in the master fee schedule.

(b)

Financing of the Alternative Compliance Measure. The applicant has demonstrated that it will successfully deliver the proposed alternative compliance measure. Applicant's contribution towards financing the proposed alternative shall include, as applicable, the full value of the land in perpetuity, as well as additional funding or other resources as needed. If the proposed alternative involves a partnership with another entity, the applicant has demonstrated that (i) the partnering entity will not be required to provide any monetary compensation to the applicant; (ii) the partnering entity will only be required to fund costs directly related to providing the BMR units and a proportional share of infrastructure serving the BMR units; and (iii) it has not shifted any of its own financial responsibility or development costs related solely to the market-rate units onto the partnering entity. The City may, at the applicant's expense, retain a consultant to review the reasonableness of the Compliance Plan's feasibility analysis.

b.

Land Dedication. In addition to the General Requirements in Section 36.40.30(a), a request for alternative compliance in the form of a land dedication to the City shall not be approved unless all the following requirements specified in Table 36.40.30-1 are met:

Table 36.40.30-1: Criteria for Land Dedication Proposals

c.

Off-site Development. In addition to the General Requirements in Section 36.40.30(a), a request for alternative compliance in the form of off-site development of BMR units shall not be approved unless all the following requirements specified in Table 36.40.30-2 are met:

Table 36.40.30-2: Criteria for Off-Site Development Proposals

d.

Acquisition and Preservation of Existing Housing Units. In addition to the General Requirements in Section 36.40.30(a), a request for alternative compliance in the form of acquisition and preservation of existing housing units to be converted into deed-restricted BMR units shall not be approved unless all of the following requirements specified in Table 36.40.30-3 are met:

Table 36.40.30-3: Criteria for Acquisition/Preservation Proposals

(Ord. No. 12.19, § 1, 6/25/19; Ord. No. 9.2026, § 2, 6/9/26.)

Editor's note— Ord. No. 9.2026, § 2, adopted June 9, 2026, amended the title of § 36.40.30 to read as herein set out. The former § 36.40.30 title pertained to alternative mitigations.

A fee reduction shall be available to projects that: (i) construct between one and six units, and (ii) develop at the maximum permissible residential base density permitted on the project site. The graduated fee reduction schedule shall be provided in the administrative guidelines issued by the Housing Director under Section 36.40.10(j).

The fee reduction shall depend on the maximum permissible residential base density permitted on the project site.

(Ord. No. 9.2026, § 2, 6/9/26.)

a. The city or its designee shall select potential occupants of BMR units from a list of those persons qualified on the basis of household income, relationship between household size and the size of available units, and further criteria and procedures to be established in the BMR guidelines.

b. Each purchaser of a BMR unit shall certify, prior to close of escrow, in a form acceptable to the city or its designee, that said unit is being purchased and shall be maintained as the purchaser's primary place of residence.

c. The household income of each renter of a BMR unit shall be verified annually by the city or its designee to confirm the household's continued income eligibility for the unit as set forth in the BMR guidelines and other procedures that the city may promulgate.

(Ord. No. 18.13, § 1, 12/10/13; Ord. No. 12.19, § 1, 6/25/19; Ord. No. 9.2026, § 2, 6/9/26.)

A housing fund is hereby established for the deposit of all in-lieu fees and other penalties and payments made to the city under the BMR program. The purpose of the fund is to assist in providing housing that is affordable to very low-, low- and moderate-income households and cover administrative costs of the BMR program. The city has sole discretion in determining the income levels(s) that shall be funded with the housing fund, and the housing fund shall not be used to fund units in the above moderate-income category.

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

Any individual or household that rents, purchases, or sells a BMR unit in violation of the BMR program requirements or the intent of the BMR program shall be subject to penalties, and shall be required to forfeit all monetary amounts so obtained in excess of the permitted resale price or rental rates. Such amount shall be deposited in the city's BMR housing fund. If the city/designee undertakes any enforcement action to obtain compliance with the requirements of the BMR program, the city/designee shall be entitled to recover its attorney's fees and staff costs for such enforcement effort.

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

a.

Exemptions—Historic resources. Exemptions from, or credit toward, BMR requirements may be granted for certain historic resources pursuant to this section.

b.

Exemptions—Precise plans. Exemptions from BMR requirements may be granted in precise plans where the precise plan expressly provides different BMR requirements or exceptions from specific requirements of this Article XIV, Division 2, including the BMR guidelines.

c.

Appeals of determinations based on the administrative requirements of the BMR program as established in the BMR guidelines must be in the form of a written request by the appellant and be addressed to the Housing Director. The Housing Director or designee shall make the ruling, and all rulings shall be final. The city may establish cost recovery fees for appeals.

(Ord. No. 18.13, § 1, 12/10/13; Ord. No. 12.19, § 1, 6/25/19; Ord. No. 12.21, § 3, 12/14/21; Ord. No. 9.2026, § 2, 6/9/26.)

The provisions of the BMR program shall become effective on August 24, 2019 and apply to all residential developments, except the following residential developments:

a.

Non-gatekeeper projects with formal applications submitted by June 30, 2019 and the submittal of all additional information (if any) by August 24, 2019 as requested in the city's thirty (30) day letter responding to the applicant's formal application submittal.

b.

"Gatekeeper" developments deemed ready by the city, by December 20, 2019, for a public hearing for consideration of project approval and processed in accordance with City Code Secs. 36.50.90, 36.52.20, and 36.52.55.

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

a.

Housing fund. Housing impact fees shall be deposited in the City of Mountain View housing fund. The city finance and administrative services director shall maintain the funds in a subaccount separate from other funds in the Mountain View housing fund account.

b.

Administration. The housing fund shall be administered by the community development director, who shall have the authority to govern the housing fund consistent with this chapter, and to prescribe procedures for said purpose, subject to approval by the council.

c.

Purposes and use of funds.

1.

Moneys deposited in the housing fund, along with any interest earnings on such moneys, shall be used solely to increase and improve the supply of housing affordable to households of very low, low and moderate income; including, but not limited to, acquisition of property and property rights; cost of construction, including costs associated with planning, administration and design, as well as actual building or installation, as well as any other costs associated with the construction or financing of affordable housing; and reimbursement to the city for such costs if funds were advanced by the city from other sources. To the maximum extent possible, all moneys should be used to provide for additional affordable housing and services. Moneys may also be used to cover administrative expenses not reimbursed through processing fees, including consultant and legal expenses related to the establishment and/or administration of the housing fund. No portion of the housing fund may be diverted to other purposes by way of loan or otherwise.

2.

Moneys in the housing fund shall be used to construct, acquire, rehabilitate or subsidize very low-, low- and moderate-income housing and/or to assist other governmental entities, private organizations or individuals in the construction, rehabilitation and reimbursement of city-advanced funds. Moneys in the housing fund may be disbursed, hypothecated, collateralized or otherwise employed for these purposes from time to time as the community development director and city council determine is appropriate to accomplish the purposes of the housing fund. The housing fund moneys may be extended for the benefit of rental or owner-occupied housing or housing services.

3.

Expenditures by the community development director from the housing fund shall be controlled, authorized and paid in accordance with general city budgetary policies. Execution of contracts related to the use or administration of housing fund moneys shall be in accordance with standard council policy.

4.

Construction projects assisted with housing impact fee funds shall comply with the prevailing wage requirements of the Federal Community Development Block Grant (CDBG) Program or the HOME Investment Partnership (HOME) Program or successor programs. If the project is not assisted with CDBG or HOME program funds, state prevailing wages shall apply.

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

a.

Housing impact fee. A housing impact fee is hereby imposed on all developers of nonresidential projects that involve the construction of new floor area, except as otherwise set forth herein.

b.

Calculation of housing impact fee.

1.

The housing impact fee for nonresidential development projects shall be charged on a per-square-foot basis for all net new gross floor area, including all additions where floor area is increased, with a specific per-square-foot amount set for each nonresidential land use category and amount of floor area identified in Table 36.40-1 below. The amount of the fee shall be computed as follows: (gross square feet nonresidential floor area minus existing floor area) x (applicable fee as listed in Table 36.40-1) = housing impact payment.

2.

The amount of each such fee shall be established by resolution of the city council and shall be adjusted annually as a part of the city's annual budget process by the percentage change in the Consumer Price Index for the San Francisco-Oakland-San Jose area for the previous year.

3.

In calculating the fee, the chief building official shall use those fees in effect by resolution of the city council at the time of the issuance of the building permit or, if no building permit is required, at the time of issuance of a use or other discretionary permit.

4.

The community development director shall determine the appropriate land use category as set forth in Table 36.40-1 below for each new nonresidential development project.

TABLE 36.40-1

HOUSING IMPACT FEE REQUIREMENTS

c.

Alternative to payment of a housing impact fee. As an alternative to payment of the housing impact fee, a developer of a nonresidential development project may submit a request to mitigate the impacts of such development through the construction of residential units, the dedication of land or provision of other resources. Such requests may be granted in the discretion of the city council, if the city council determines that such alternative will further affordable housing opportunities in the city to an equal or greater extent than payment of the housing impact fee. However, for combined or mixed-use projects subject to administrative approval pursuant to Section 36.44.75 of the city code, requests for alternatives to payment of housing impact fees may be granted by the housing director, in consultation with the community development director, upon a determination that such alternative will further affordable housing opportunities in the city to an equal or greater extent than payment of the housing impact fee.

d.

Adjustment, reduction or waiver. An adjustment, reduction or waiver of the fees required by this Section may be granted for nonresidential development projects under the following circumstances:

1.

Upon the remodeling of a building to add square footage, the appropriate housing impact fee shall be paid only on the additional square footage.

2.

If the nonresidential development project is in whole or part a replacement for space previously on the site, but vacated or demolished in the twelve (12) months prior to the filing of the application for a zoning permit for the new construction or remodel, credit shall be given for the space vacated or demolished or to be vacated or demolished at the rate applicable to the prior use of that space.

3.

If the nonresidential development project is constructed for a specific use involving no employees or fewer than one (1) employee per two thousand (2,000) square feet of gross floor area, the project may be eligible for a waiver of the fees. To be eligible for a waiver, the building must be designed and built such that it cannot be converted to a use capable of housing a larger number of employees except by major reconstruction. The burden of proof shall be on the applicant. If a waiver is granted, a "notice of conditional waiver of housing impact fee" shall be recorded in the Santa Clara County Office of the Recorder. If a subsequent change in the use or structure of the building occurs which involves additional employees, the waiver granted herein shall be deemed revoked, subject to a hearing before the zoning administrator, who shall make a recommendation on the revocation to the city council. The decision of the city council shall be final.

4.

If, upon evaluation of facts presented by the applicant, there is an absence of any reasonable relationship or nexus between the impact of the development and the need for housing, the project shall be eligible for a waiver of the fees.

Adjustment, reduction or waiver of the fees required by this Section may be granted by the city council for all development projects, except adjustments, reduction or waiver of the fees required by this Section may be granted by the housing director, in consultation with the community development director, for combined or mixed-use development projects subject to administrative approval pursuant to Section 36.44.75 of the city code.

e.

Exemptions. This fee shall not apply to developers of nonresidential projects which fall within one (1) or more of the following categories:

1.

Buildings which are owned and at least seventy-five (75) percent occupied by governmental or nonprofit agencies and organizations.

2.

Any building which is damaged or destroyed by fire or natural catastrophes so long as the total square footage of the repaired or replaced building remains the same.

f.

Grandfather provision. The following nonresidential projects shall be exempt from the provisions of this Article:

1.

Projects for which a complete application has been submitted by December 11, 2001 and final approval for a valid zoning permit has been issued and is in effect as of March 9, 2002; or

2.

Projects for which a complete application has been submitted by December 11, 2001 and final approval for a valid zoning permit has been issued and is in effect as of March 9, 2002 and which are subsequently the subject of a revised application except that any increase in the amount of originally approved floor area shall be subject to the provisions of this Article.

(Ord. No. 18.13, § 1, 12/10/13; Ord. No. 12.19, § 1, 6/25/19; Ord. No. 10.2026, § 6, 6/9/26.)

a.

Filing requirements. The zoning administrator shall develop administrative guidelines for processing applications subject to the requirements of this section.

b.

Payment of fee. Unless otherwise mandated and preempted by state law, the housing impact fee shall be paid prior to the issuance of the first grading or building permit.

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

a.

Payment of the housing impact fee is the joint and several obligation of the applicant and/or the property owner for the subject nonresidential development project. In the event of administrative error, the city shall provide the applicant with a written notice and the applicant shall be required to pay the fees within thirty (30) days.

b.

The provisions of this article shall apply to all owners of the property, which is the subject of the application, and developers, agents, successors and assigns of an applicant proposing or constructing a nonresidential development governed by this article. No zoning permit shall be issued for a nonresidential development after March 9, 2002, unless it is in compliance with the terms of this article.

c.

The city may institute any appropriate legal actions or proceedings necessary to ensure compliance herewith, including, but not limited to, actions to revoke, deny or suspend any permit or development approval. The city shall be entitled to costs and expenses for enforcement of the provisions of article, or any agreement pursuant thereto, as awarded by the court, including reasonable attorneys' fees.

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

Appeals of a housing impact fee condition in a zoning permit or parcel or subdivision map shall be filed with the clerk of the city council within ten (10) calendar days of the notice of decision. The council shall hold a public hearing to consider any appeals in accordance with the procedures of Sec. 36.56. Appeals of any decision of the community development director pursuant to this program may be made to the city council in accordance with Sec. 36.56.

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