Below-Market Rate Units a First for Reserve

John Hyjer says the new apartments will remain at the below-market rate for at least 55 years.

MOUNTAIN VIEW, CA—Much has been discussed about the inverse proportion of housing compared to Silicon Valley job growth, with numerous studies to back those assertions. As part of its effort to find solutions at its existing communities, Equity Residential recently submitted plans to the city to add 200-plus apartments to its Reserve at Mountain View Apartments, including the addition of 25 below-market rate residences. Currently, the community has no below-market rate units among its 180, one- and two-bedroom apartments.

Once approved and completed, the new apartments will be offered at a price below the current rent-controlled rates at Reserve at Mountain View, and will remain below-market rate for at least 55 years. With the Reserve at Mountain View community covering nearly 10 acres, only 42 existing apartments will need to be vacated to make way for the new addition. Residents who have incomes of less than the 120% average median income could have relocation expenses covered and the choice on a first-come, first-served basis to relocate to a like-kind apartment at Reserve at Mountain View or one of three other Equity Residential properties in Sunnyvale. Any of those choices will provide a rent-controlled rate for three years, explained John Hyjer, first vice president investments and development, Equity Residential. He went on to add that instead of relocation, eligible residents could also take a cash buy-out option 50% higher than the city requires.