Mountain View planning commission backs clarifying amendments to Below‑Market‑Rate housing code, including 3% annual rent cap for BMR units

The Environmental Planning Commission on Feb. 5, 2025 recommended that City Council adopt clarifying amendments to Mountain View’s Below‑Market‑Rate (BMR) housing ordinance, including codifying a 3% maximum annual rent increase for BMR units, tightening AMI definitions and clarifying how BMR unit rents are set.

Julie Barnard, the city’s affordable housing manager, told commissioners the changes are intended as “cleanup” items ahead of a more comprehensive round of BMR code updates later this year. Barnard summarized four targeted modifications: (1) add a rent‑increase provision that caps annual increases at 3%, limits increases to one per 12‑month period and requires 30 days’ written notice to tenants; (2) clarify income category definitions so AMI bands are consistently applied; (3) confirm that BMR unit rents are set by the unit’s assigned AMI level rather than by a tenant’s household income; and (4) clarify the definition of “residential development” to explicitly include creating dwelling units, converting nonresidential uses to residential, or converting rental units to ownership units.

Wayne Chen, housing director, said the city has applied a 3% cap administratively for several years and the ordinance change would codify that policy. “The city has been applying a 3% maximum rent increase just as a matter of policy, but it’s never been codified,” Chen said. He added the proposed change formalizes existing practice for BMR units integrated in market developments.

Commission discussion touched on wording clarifications and condo‑conversion language. Commissioner Bill Cranston asked why converting rental to ownership would be described as a “development”; staff said the wording is intended as a clarification of existing code and reflects processes such as condominium conversions that require review. Commissioner Donahue asked staff to refine a few technical references in the draft language; Barnard said staff will incorporate the clarifications before the item goes to council.

The commission voted to recommend council adoption; Commissioner Yin moved the motion. The vote was 5 in favor, 0 opposed, 1 absent. Staff said the ordinance would be presented to council for first reading on Feb. 25, 2025 and scheduled as a consent second reading on March 25, 2025. Barnard and staff also said a comprehensive update to the BMR program — covering accessibility, alternative mitigation approaches, and other policy changes — is expected to return to the commission and council later in 2025.

Staff also included a CEQA determination: the amendments are preliminary clarifications and, per California Code of Regulations section 15060(c)(2), staff recommended a finding that the code edits are not subject to CEQA because they will not result in a direct or reasonably foreseeable indirect physical change to the environment.

The commission’s recommendation sends the cleanup items to City Council for formal adoption and sets the stage for broader BMR ordinance work later this year.