HomeMy WebLinkAboutOrdinance 56571
Ordinance No.5657
Ordinance of the Council of the City of Palo Alto Amending: Chapter 18.14
(Housing Incentives) of the Palo Alto Municipal Code to Implement Program 3.4E
of the 2023-2031 Housing Element to Expand and Revise Regulations for the El
Camino Real Focus Area; Making Conforming Amendments to Chapter 16.58
(Development Impact Fees)
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. On May 8, 2023, the City Council adopted Resolution No. 10107, approving an Addendum
to the Comprehensive Plan Environmental Impact Report (EIR), making various findings, and
adopting the 2023-2031 Housing Element for the City of Palo Alto.
B. On November 13, 2023, the City Council approved a Revised Addendum to the
Comprehensive Plan EIR and introduced Ordinance No. 5608, rezoning sites in the 2023-
2031 Housing Element Sites Inventory to accommodate the City’s Regional Housing Needs
Allocation.
C. On April 15, 2024, the City Council adopted Resolution No. 10155, making various findings,
adopting a Revised 2023-2031 Housing Element, and authorizing the Director of Planning
and Development Services to take further actions necessary to achieve certification of the
Housing Element by the California Department of Housing and Community Development
(HCD).
D. On August 19, 2024, HCD found that the Revised 2023-2031 Housing Element, as further
modified on July 17, 2024, was substantially compliant with state law.
E. Program 3.4E of the City’s Revised 2023-2031 Housing Element directs the City to expand
the geographic boundaries of the El Camino Focus Area to incentivize housing production
in appropriate locations.
F. On March 26, 2025, the Planning and Transportation Commission considered and
recommended that the City Council adopt this ordinance to implement the 2023-2031
Housing Element.
SECTION 2. Section 18.14.020 (Housing Element Opportunity Sites) of Chapter 18.14 (Housing
Incentives) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended to read as
follows (additions underlined; deletions struck through; and unchanged text omitted with
bracketed ellipses):
18.14.020 Housing Element Opportunity Sites and Focus Areas
This subsection implements the rezoning required to meet the RHNA in the 2023-2031 Housing
Element, pursuant to Appendix D. Regulations identified in Table 1 and Table 2 modify and replace
development standards provided in base zoning district and applicable combining district
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regulations. This section additionally provides regulations for Housing Focus Areas in portions of
El Camino Real and in the GM/ROLM districts that further the goals of the Housing Element.
(a) Applicability: This subsection applies to Housing Development Projects, as defined in Cal. Gov’t
Code § 65589.5, on Housing Element opportunity sites listed in Appendix D and on sites within
the GM/ROLM and El Camino Real Focus Areas depicted in Figure 1 and Figure 3.
[. . .]
(c) Development Standards: Refer to base zoning district and applicable combining districts for
development standards except:
(i) Residential uses on R-1 zoned sites (faith-based institutions) shall be subject to the
development standards for the RM-30 zoning district, pursuant to Chapter 18.13.040,
except that Maximum FAR shall be 1.25 and minimum density shall be 20 units per acre.
(ii) RM-20, RM-30, RM-40, CN, CS, CC, CC(2), CD-C, and CD-N zoned sites as modified by Table
1.
(iii) GM, ROLM, and RP zoned sites as modified by Table 2.
(iv) PF zoned sites shall meet the following development standards:
(A) Downtown sites: CD-C standards, pursuant to Table 1 below.
(B) California Avenue sites: CC(2) standards, pursuant to Table 1 below.
(v) Specific Stanford University-owned sites and El Camino Real Focus Area sites may, as an
alternative to State Density Bonus Law, meet base district regulations as modified by Table
3. Housing Development Projects that utilize State Density Bonus Law shall be subject to
base district standards or standards provided in Tables 1 and 2, as applicable. Additionally,
El Camino Real Focus Area sites shall:
(A) Complete Major Architectural Review pursuant to Section 18.77.020 or Streamlined
Housing Development Project Review pursuant to Section 18.77.073, as applicable.
(B) Except as provided in paragraph (C) below, Pprovide at least 20% of total units as on-
site below-market rate housing affordable to households earning up to 80% of AMI.
This requirement shall apply in place of the basic requirements set forth in Sections
16.65.030 and 16.65.040. The below-market rate units affordable to lower income
households and/or their square footage shall be exempt from payment of
development impact fees.
(C) Projects proposed on a site for which the Director determines a valid, pending
application meets the definition of a “builder’s remedy project” may provide on-site
below-market rate housing consistent with “housing for very low, low-, or moderate-
income households,” as those terms are defined in Government Code Section 65589.5.
This requirement shall apply in place of the enhanced requirements set forth in
subdivision (c)(v)(B) above and shall be credited toward fulfillment of the basic
requirements set forth in Sections 16.65.030 and 16.65.040. The below-market rate
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units provided pursuant to this paragraph (C) shall be subject to payment of
development impact fees as set forth in Title 16 of this code.
(vi) Combining district design and development standards shall not apply to exclusively
residential projects on housing opportunity sites designated in Appendix D of the Housing
Element to accommodate lower income households.
[. . .]
Table 3
Site- Specific Development Standards (Stanford-Owned Sites & El Camino Real Focus Area)
Location Pasteur Dr. & 1100
Welch Rd. (1)(3)
(Figure 2)
El Camino Real Focus Area(1)
(Figure 3)
Minimum Setbacks (feet)
Setback lines imposed by a special setback map pursuant to Chapter
20.08 of this code may apply.
Minimum Front (7)
Setback
15 feet 0' - 10' to create a 12' effective sidewalk
width See base district regulations
Abutting low density residential (RE, R2,
NV-R2, RMD), R1, or NV-R1 zone district:
20’
Abutting other residential zone district:
10’
Rear and Interior
Side (8)
Abutting non-residential zone district: 10’
for residential use; none for non-
residential use
Street Side(7)
See base district
regulations: 18.13.040
5’
Maximum FAR (Total)3.5 (Total)Lot size => 10,000 sq. ft.: 4.0 (Total)
Lot size < 10,000 sq. ft.: 3.0 (Total)
Maximum FAR (Non-
Residential)
See base district
regulations: 18.13.040
See base district regulations, except:
1. An additional 5,000 square feet of
retail and retail-like uses may be
permitted, subject to Total FAR limits.
2. Hotel uses may exceed the base
district non-residential FAR provided
the project is a Housing Development
Project and subject to Total FAR limits.
Maximum Site/
Minimum
Landscape/Open
Space Coverage
See base district
regulations (2)
See base district regulations (2)
Maximum Lot
Coverage
60%Lot size => 10,000 sq. ft.: 80%
Lot size < 10,000 sq. ft.: 70%
Maximum Density None None
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(du/ac)
Maximum Height(6)
(feet) for residential
portion
85 Lot size => 10,000 sq. ft.: 85
Lot size < 10,000 sq. ft.: 65
Maximum Height(6)
(feet) for non-
residential portion
50 50, except Hotel uses may reach 85 feet
Daylight Plane Sand Hill Rd. frontage
only: initial height 60
feet above grade at
the Sand Hill Rd.
setback line and a 45-
degree angle
For lot lines abutting an R1 or NV-R1
zoning district:
Initial height: 16 feet, measured at the
property line
Slope: 45 degrees
Other locations: See base district
regulations for standards for daylight
planes
Height Transitions n/a Within 100 ft. of low density residential
(RE, R2, or RMD) or R1 single family zone
district property line: 35 ft.
Between 100 and 150 ft. of low density or
R1 zone district property line: 45 ft.
Upper Story Step Back None El Camino Real frontage above 55 feet in
height: minimum 10 6 foot step-back from
lower facade, for a minimum 70% of the
facade length.; and average setback from
the property line for the entire facade
shall be 20 feet(7).
See Figure 4.
Minimum Usable
Open Space
100 sq. ft./unit (any
combination of
common and/or
private)
100 sq. ft./unit (any combination of
common and/or private) (2)
Minimum Residential
Parking(5)
0.5 spaces/unit 1 space/unit
(Per AB2097: 1 0 space/unit within ½ mile
of Caltrain)
Other Development
Standards
See base district
regulations: 18.13.040
See base district regulations
Design
Criteria/Standards
Compliance with
Objective Design
Standards pursuant to
18.24(4)
Architectural Review Streamlined Housing
Development Project Review and
compliance with either Objective Deign
Standards pursuant to Chapter 18.24 or
Architectural Review and compliance with
Context-Based Design Criteria pursuant to
base district regulations(4).
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Notes:
[. . .]
(2) Permitted Landscape/open space may be provided above the ground-floor. For sites
containing a naturalized creek, up to 50% of the landscape/open space and minimum usable
open space requirements may be satisfied by open space within the creek area (as defined by
the top of bank). If standard is not specified, refer to base district regulations.
[. . .]
(4) Except, the following objective design standards shall be modified to meet the realistic
capacity identified in the Housing Element:
(a) 18.24.050(b)(5): Diversity of Housing Types shall not apply.
(b) 18.24.060(b)(7): Parking/Loading/Utilities, shall be replaced with the following standard:
Above grade structured parking levels facing a public right-of-way or publicly accessible open
space/path with the exception of vehicular alleys, shall compose no more than 50% of any public
frontage. Garage facades fronting on public right-of-way shall be screened with decorative
architectural screening (e.g. perforated metal panels, murals), lined with habitable uses, or
screened with landscaping (e.g., green wall, climbing vines).
(c) 18.24.050(b)(1): Upper Floor Step Backs & Daylight Planes shall not apply.
[. . .]
(7) Average setback from the property line may be calculated by taking the area between the
property line and the upper facade. This area, in square feet, shall be greater than or equal to the
facade length multiplied by 20. Example: 200-foot facade length x 20-foot average setback +
minimum 4,000 sq. ft. area of setback per floor. For purposes of this calculation, portions of the
upper facade with a setback greater than 40 feet shall be treated as if the facade is located at 40
feet from the property line. For purposes of this calculation, roof projections and eaves up to
four feet in depth shall be excluded.
For the purposes of this development standards table, the following definitions apply:
“Abutting” refers to parcels that share a property line, exclusive of parcels with intersecting
corners, parcels separated by a street, or parcels under common ownership.
“Lot Size” refers to the total lot area of a proposed project, which may be composed of one or
more parcels, generally under common ownership, which may include parcels developed in
phases over time.
“Front Setback” for properties on El Camino Real means the setback from El Camino Real.
“Street Side Setback” for properties on El Camino Real means the setback from a street that
intersects El Camino Real.
(8) Below-grade encroachment into rear and interior side setbacks is permitted for the site at
3300 El Camino Real.
[. . .]
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Figure 3: El Camino Focus Area
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Figure 4: Upper Story Step Back (El Camino Real Focus Area)
portions of buildings more than 49 feet from the property line shall be counted as 40 feet
Figure 4b
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SECTION 3. Section 16.58.030 (Exemptions) of Chapter 16.58 (Development Impact Fees) of Title
16 (Building Regulations) of the Palo Alto Municipal Code is hereby amended to read as follows
(additions underlined):
16.58.030 Exemptions.
The provisions of this chapter shall not apply to the following:
(a) City buildings or structures;
(b) Public school buildings or structures;
(c) Residential housing, either for sale or rental, which, by recordable means, is permanently
obligated to be 100% affordable, as defined in Section 18.14.040(c);
(d) Retail service, eating and drinking service, personal service, or automotive service when
the total additional square footage is 1,500 square feet or less. This exemption shall apply
only when the additional square footage of new development does not exceed 1,500
square feet. New development that is larger than 1,500 square feet shall pay a fee for all
square footage, including the first 1,500 square feet;
(e) Day care centers used for child care, nursery school or preschool education;
(f) Below market rate housing units above and beyond the minimum number required for
projects subject to the City's Below Market Rate (BMR) Housing program or other housing
incentive programs. The additional units must be offered and constructed in a manner
consistent with all requirements of the BMR program;
(g) Accessory dwelling units (ADU) less than 750 square feet in size. Any impact fees to be
charged for an accessory dwelling unit of 750 square feet or more shall be proportional to
the square footage of the primary dwelling unit;
(h) Junior accessory dwelling units (JADU);
(i) Any residential subdivision for which land dedication or fees in lieu thereof are required
pursuant to Chapter 21.50 of the Palo Alto Municipal Code. This exemption shall only apply
to the park development fee described in Section 16.58.020(a).
(j) Below market rate housing units affordable to lower income households constructed
pursuant to the El Camino Focus Area standards pursuant to Section 18.14.020, subdivision
(c)(v)(B), of the Palo Alto Municipal Code.
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SECTION 4. Section 18.14.030 (Housing Incentive Program) of Chapter 18.14 (Housing Incentives)
of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended to read as follows
(additions underlined; text unchanged and omitted indicated by bracketed ellipses):
18.14.030 Housing Incentive Program
(a) Purpose
The housing incentive program modifies base zoning district standards and streamlines review
to encourage higher-density multi-family housing production. The program is a local
alternative to State Density Bonus Law.
(b) Applicability
The housing incentive program shall apply to the following zoning districts or locations:
(1) Chapter 18.13: RM-20, RM-30, RM-40
(2) Section 18.14.020: GM/ROLM Focus Area (see Figure 1)
(3) Chapter 18.16: CC(2), except the sites at 156-164 California Avenue; CN or CS-zoned
sites on El Camino Real, except sites in the Automobile Dealership (AD) Combining
District; CS sites on San Antonio Road between Middlefield Road and East Charleston
Road
(4) Chapter 18.18: CD(C)
(5) Chapter 18.29: NV-R3, NV-R4, NV-MXL, NV-MXM, NV-MXH, NV-PF
[. . .]
(e) Development Standards
[. . .]
Table 6
FAR and Building Height Standards, by Eligible Zone District
[. . .]
Notes:
(1) Nothing in this section increases the non-residential floor area permitted in any district.
Maximum Floor Area Ratio shall be increased by 0.5:1 for projects in which at least 10%
of all units contain three or more bedrooms.
[. . .]
[. . .]
SECTION 5. If any section, subsection, clause or phrase of this Ordinance is for any reason held to
be invalid, such decision shall not affect the validity of the remaining portion or sections of the
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Ordinance. The Council hereby declares that it should have adopted the Ordinance and each
section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid.
SECTION 6. In accordance with the California Environmental Quality Act (CEQA), the City prepared
an Addendum to the 2017 Comprehensive Plan Environmental Impact Report (EIR), analyzing the
potential environmental impacts of the 2023-2031 Housing Element. On May 8, 2023, the City
Council adopted Resolution No. 10107, and on November 17, 2023, the City Council approved a
Revised Addendum, finding that the Addendum, as revised, and the 2017 EIR adequately analyzed
the environmental impacts of the Housing Element, including the Programs implemented by this
ordinance.
SECTION 7. This Ordinance shall be effective on the thirty-first day after the date of its adoption.
INTRODUCED: MAY 27, 2025
PASSED: JUNE 16, 2025
AYES: BURT, LAUING, LYTHCOTT-HAIMS, RECKDAHL
NOES:
ABSENT: STONE
RECUSED: LU, VEENKER
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM:APPROVED AS TO CONTENT:
Assistant City Attorney City Manager
Director of Planning and
Development Services
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Subject: ORD 5657 El Camino Focus Area
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250 Hamilton Ave
Palo Alto , CA 94301
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