Sunnyvale planners review cost-driven design changes to Orchard Gardens affordable housing project

The Sunnyvale Planning Commission on July 14 reviewed proposed minor site and architectural modifications to Orchard Gardens, a 123-unit, 100% affordable housing project at 245 Waddell Drive that was approved in November 2021.

Associate Planner Cindy Hahn presented the staff report, describing the request as “a miscellaneous plan permit to allow for various site and building modifications to a previously approved 100% affordable housing project located at 245 Waddell Drive.” Hahn said the project originally approved under a state density bonus included demolition of 30 units, rehabilitation of 32 units and construction of a new six‑story building containing 93 units, for a total of 123 affordable units.

Staff and the applicant said the changes are being driven by financing and cost‑efficiency needs. Serena Lee, development manager for the Santa Clara County Housing Authority, told commissioners the authority has taken over management from First Community and that the team needs to reduce costs to remain competitive for state tax‑credit funding. Architect Sarah Vaccaro said the project team seeks roughly a 10–15% cost reduction and “we're very excited to be bringing this project back to life in this phase.”

Key proposed changes presented to the commission include: removal of all exterior balconies; replacement of a rooftop central HVAC system with wall‑mounted package terminal heat pumps (PTACs); removal or reduction of some rooftop screening/trellis elements; changes to façade cladding and window openings; relocation of bike facilities; relocation of the community room; and keeping three above‑ground transformers (one serving existing Parkview apartments, two for the new building) with landscaping screening. Staff noted the modifications would raise the documented maximum building height by about one foot but remain within allowable heights under the project’s state density bonus approval.

Staff said the project would still provide the same unit count and overall affordable housing benefit: 123 units total, with 31 units set aside as permanent supportive housing, 90 family units and two manager units; households would be served at incomes between 30% and 60% of area median income (AMI). The approved usable open space allocation would decline modestly from 178 square feet per unit to 168 square feet per unit after balconies are removed; staff said the project still meets required landscaping and provides indoor community space, a rooftop community garden, and a courtyard.

Commissioners questioned technical and programmatic details. Commissioners asked how the PTACs would be serviced and whether they would meet acoustic performance given the site’s proximity to Highway 101; the applicant said condensers and louvers would be located at each unit wall and that the building envelope and windows are being specified with robust acoustic assemblies. Commissioners asked about storage replacement for carport storage removed by a pedestrian connection; architects said new ground‑floor storage would be provided and the property manager would reassign storage to units as needed to meet the city requirement (discussed in the hearing) of roughly 300 cubic feet per unit. Commissioners also asked about elevator penthouse height reductions (from about 83 feet previously to approximately 73 feet 5 inches) and whether rooftop equipment removal was consistent with retaining some rooftop domestic hot‑water equipment on the southern building.

Staff asked the commission for feedback and direction to work with the applicant to allow these changes to be approved administratively by the Director of Community Development, rather than returning each modification to the commission. Commissioners offered a range of views: several said they were reluctant to delay the project further and supported letting staff handle minor changes to help secure financing; others expressed regret at losing balconies as a design and amenity feature but agreed the tradeoff might be warranted to preserve unit counts and move construction forward. Commissioner Pine said, “I'm sad to see them removed from the project,” while also urging that the project move forward expeditiously.

The applicant said it plans to apply for 4% tax credits in September, with awards expected in the fall; if successful, construction would likely begin next year. Staff described the request as a “study session,” and no formal commission action was taken that evening; staff will work with the applicant on draft administrative approval language and return if changes exceed the scope the director may approve.

Why it matters: Orchard Gardens was approved with a state density bonus and several concessions and waivers in 2021 and represents 123 units of 100% affordable housing for Sunnyvale. The commission’s feedback will affect whether the project can be adjusted now to improve its competitiveness for tax‑credit financing and proceed toward construction without further commission review of every change.

Next steps: Staff will work with the applicant to refine the minor‑modification application and, consistent with the commission’s direction, seek director authority to approve the changes unless any modification alters the project’s massing or major design elements enough to warrant a return to the commission.