Sunnyvale notches another affordable housing project

A 100% affordable housing project near the Lawrence Caltrain station in Sunnyvale is moving forward, with the development planning  to open next year.

Nonprofit developer MidPen Housing lifted the first wall of a new 176-apartment building, Ira D. Hall Square, at the end of July. Construction began on 1178 Sonora Court in January this year, and MidPen wants to begin leasing near the end of 2025. Of all the apartments, 45 will be set aside for homeless individuals referred by the county through its coordinated entry system.

This is MidPen’s 12th apartment building in Sunnyvale, and the nonprofit has two more in pre-development. In total, MidPen operates 869 homes and is looking to add 472 more. Ethan Levin, project manager for the development, said the city has been a good partner through the years.

“This work is really hard and it’s extremely helpful when we’re working with cities that know what they’re doing and have the political will,” Levin told San José Spotlight. “We’re excited to show everyone what the community looks like when the ribbon cutting ceremony comes around.”

The building is named after one of MidPen’s founders, Ira Hall, who died last year. Levin said the nonprofit’s goals of centering local communities began with the founders, including Hall. At an event on July 26 celebrating the start of construction, Levin said Hall’s family members spoke about how much it would have meant to him that the nonprofit still supports people in need.

City officials are enthusiastic about the development. Sunnyvale Mayor Larry Klein said the city contributed about $26.5 million toward the project — half for construction and half to buy the land — and wants to ensure the apartments stay affordable long-term.

“We’re living in a housing crisis for so many in our community,” Klein told San José Spotlight. “I’m just overjoyed that we’re creating another 100% affordable housing development here in Sunnyvale.”

Sunnyvale has to build 11,966 homes by 2031, with 6,709 below-market rate, based on the state’s housing requirements. The city has been approving more projects near its transit centers, but also buying properties to facilitate redevelopment into affordable housing. Earlier this year, a development with 89 townhomes and apartments opened near downtown on city-owned land, and officials said they purchased another lot at the intersection of Mathilda and Mckinley avenues for the same reason.

Another long-term goal is to build a walkable community near Lawrence Station through increasing housing and adding more retail and office space, Klein said. Officials approved another development last year on the same street, which will include a public pedestrian access point to the Caltrain station.

Councilmember Richard Mehlinger, who represents the station’s neighborhood, said putting housing and other resources near transit will help the city reach its sustainability goals, as well as its housing goals.

“This is a really critical area for our city to be developing and I’m so happy with what we’re seeing going in there,” Mehlinger told San José Spotlight.

Councilmember Murali Srinivasan said developing closer to transit will increase its use alongside Caltrain’s electrification, which will increase the frequency of stops at city stations. He said this adds to the ways the city is working to support residents of all backgrounds.

“Forget about the (Regional Housing Needs Allocation) numbers for now, RHNA numbers are state mandated, but as a city and as a community, it should be an inclusive community and an inclusive city,” Srinivasan told San José Spotlight. “We should have a society where everybody can live and make this their community.”

Contact B. Sakura Cannestra at [email protected] or @SakuCannestra on X, formerly known as Twitter.