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Council approves changes to below‑market-rate rules for 777 West Middlefield teacher housing project
Summary
Mountain View approved increasing the moderate-income eligibility from 120% AMI to 150% AMI and extending the grace period from one year to three for the 777 West Middlefield below‑market‑rate (BMR) building housing Mountain View Whisman School District staff and teachers, after staff said lease‑up of moderate units was low.
The City Council on June 24 approved staff’s recommendation to modify the below‑market‑rate (BMR) terms for the residential building at 777 West Middlefield Road, measures the school district and developer said are needed to increase leasing of units intended primarily for Mountain View‑area teachers and staff.
Wayne Chen, the city’s housing director, explained the project was approved in 2019 with a BMR mitigation arrangement: 20% of the 716 units (144 total) were to be BMR, delivered in a standalone building financed with Mountain View Whisman School District bonds. Of those, 124 units are reserved for school‑district employees and 20 for city employees. City staff told the council the moderate‑income (120% AMI) units have a 93% vacancy rate.
Chen said two factors drove the low lease‑up: the income limits set at 120% AMI made it difficult for dual‑income households to qualify, and the current one‑year grace period that allows residents to remain in a unit after they become over‑income creates instability for the district. The district requested raising the moderate income ceiling to 150% AMI and extending the grace period to three years.
The council also heard from Jeff Baer, superintendent of the Mountain View Whisman School District, who said the district’s survey showed significantly higher interest from staff at higher AMI thresholds and that aligning housing availability with the school year generally improves utilization: “Summertime being a more natural time for teachers to choose to move or staff to choose to move,” Baer said.
Chen said the project contains a waterfall provision: if district or city employees do not lease the district‑reserved units, they may be offered to the general public under the original 120% AMI terms. He also noted the Teacher Housing Act was discussed as part of the legal framework for flexibility in supporting teacher housing.
Councilmember Lucas Ramirez, who had worked with the district’s oversight committee, praised the collaboration and urged continued oversight. The council approved the resolution unanimously. Staff will amend Condition of Approval 66 and the BMR regulatory agreement to reflect the 150% AMI level for qualifying district and city employees and lengthen the post‑over‑income vacate period to three years.
A follow‑up will address implementation details including the timing and any waterfall triggers if units remain vacant after district leasing efforts.
