Sunnyvale temporarily shields Murphy Station district from SB 79 housing rules

Sunnyvale has temporarily excluded the Murphy Station Heritage Landmark District from specified state transit-housing requirements, leaving the district’s existing zoning in place while the city studies how to meet California’s broader housing obligations.

The City Council adopted Ordinance No. 3253-26 on May 19, 2026. The action applies to a specific historic commercial district near Downtown Sunnyvale Caltrain and is not a permanent exemption from Senate Bill 79.

What the ordinance covers

City records identify the affected area as the Murphy Station Heritage Landmark District. It includes properties on the 100 block of South Murphy Avenue between Evelyn Avenue and Washington Avenue, along with properties on West Washington Avenue between South Frances Street and South Sunnyvale Avenue.

The district includes Murphy Avenue itself and represents about 1% of the half-mile area measured from the Sunnyvale Caltrain station. City planning records describe it as the only designated heritage area in Sunnyvale affected by SB 79 and say it is below the law’s 10% historic-resource threshold.

During the temporary exclusion period, the SB 79 provisions covered by the ordinance do not apply within the district. Existing Sunnyvale zoning therefore continues to govern development proposals there, along with the district’s applicable heritage-preservation requirements.

How long the exclusion lasts

Sunnyvale’s zoning code says the exclusion remains in effect until one year after the city adopts its seventh housing-element revision. The timeline postpones application of the specified SB 79 provisions in the district; it does not resolve Sunnyvale’s longer-term compliance plan.

SB 79 took effect July 1, 2026. At a high level, the law requires qualifying areas near certain transit stops to allow specified housing densities, building heights, residential floor-area ratios and development standards. Projects proposed under the law may also receive streamlined ministerial review if they meet the statute’s requirements.

Why the city acted

Sunnyvale planning documents say the Murphy Station district is a historic commercial area and the city’s only designated heritage area affected by SB 79. Staff cited the district’s limited geographic share of the eligible transit area and the need to consider protections for existing commercial and retail uses.

For property owners and businesses, the immediate consequence is that the state transit-housing standards covered by the ordinance are not currently controlling development in this district. Residents and developers should not read the action as a ban on future housing or as a permanent preservation of current zoning.

What remains unresolved

Sunnyvale staff are continuing to study alternative locations for transit-oriented housing, airport-safety constraints and broader options for complying with SB 79. City records do not identify those alternatives or any replacement development standards as final selections.

The ordinance settles one narrow question: the Murphy Station Heritage Landmark District is temporarily excluded from the specified SB 79 provisions. It does not settle how Sunnyvale will accommodate the law’s housing capacity elsewhere, what standards will ultimately apply near Downtown Sunnyvale Caltrain, or when future zoning changes may be proposed.

Residents, businesses, property owners and developers should watch future City Council, Planning Commission and housing-element actions for the next major changes.

Sources

• Sunnyvale Municipal Code, Section 19.96.170
• Sunnyvale planning report on the Murphy Station district
• California Legislative Information: SB 79