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City, MidPen continue talks for 295 S. Matilda affordable housing; neighbors press for narrower design and parking solutions
Summary
MidPen Housing and city staff briefed council on a proposed 122‑unit affordable development at 295 S. Matilda. The site is in Sunnyvale’s downtown specific plan; neighbors urged smaller scale, senior housing, or added parking and council asked staff to weigh funding, unit mix and encumbrances under the exclusive negotiation agreement.
The City of Sunnyvale and MidPen Housing Corporation returned to council Sept. 9 with an update on the proposed affordable housing project at 295 South Matilda Avenue. City staff and MidPen have been negotiating a development plan and an eventual disposition and development agreement for the downtown property after the city acquired the former bank site with housing mitigation funds.
City Community Development Director Trudy Ryan told council MidPen has filed a formal planning application and submitted a financing plan and community engagement plan. “The ENA will expire, in March 2026, unless we enter into a disposition and development agreement or DDA prior to that time,” Ryan said. Under the current schedule MidPen’s most recent proposal is for approximately 122 units, and staff noted the site is in the state‑defined “highest resource” area, which improves competitiveness for state affordable‑housing funds.
MidPen representatives described the current concept and the financing reality. The…
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