HomeMy WebLinkAbout2020-09-30 Planning & transportation commission Agenda Packet_______________________
1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the
time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided
that the non-speaking members agree not to speak individually.
2. The Chair may limit Oral Communications to 30 minutes for all combined speakers.
3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers.
Planning & Transportation Commission
Regular Meeting Agenda: September 30, 2020
Virtual Meeting
6:00 PM
https://zoom.us/join Meeting ID: 959 2402 4700 Phone number: 1 669 900 6833
****BY VIRTUAL TELECONFERENCE ONLY***
Pursuant to the provisions of California Governor’s Executive Order N-29-20,
issued on March 17, 2020, to prevent the spread of COVID-19, this meeting will be
held by virtual teleconference only, with no physical location. The meeting will be
broadcast live on Cable TV and through Channel 26 of the Midpen Media Center
at https://midpenmedia.org/local-tv/watch-now/.
Members of the public may comment by sending an email to
planning.commission@cityofpaloalto.org or by attending the Zoom virtual
meeting to give live comments. Instructions for the Zoom meeting can be found
on the last page of this agenda.
TIME ESTIMATES
Listed times are estimates only and are subject to change at any time, including while the
meeting is in progress. The Commission reserves the right to use more or less time on any item,
to change the order of items and/or to continue items to another meeting. Particular items may
be heard before or after the time estimated on the agenda. This may occur in order to best
manage the time at a meeting or to adapt to the participation of the public
Call to Order / Roll Call
Oral Communications
The public may speak on items not on the agenda. Each member of the public may address the Commission for up
to three (3) minutes per speaker.1,2
Agenda Changes, Additions, and Deletions
The Chair or Commission majority may modify the agenda order to improve meeting management.
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1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the
time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided
that the non-speaking members agree not to speak individually.
2. The Chair may limit Oral Communications to 30 minutes for all combined speakers.
3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers.
City Official Reports 6:00PM-6:15 PM
1. Directors Report, Meeting Schedule and Assignments
Study Session
Public Comment is Permitted. Three (3) minutes per speaker.1,3
6:15PM-6:45 PM
2. Study Session to Review the Pending Planning and Housing 2020 Legislation.
6:45PM-7:45 PM
3. Study Session Regarding the Renter Community and Renter Protections in Palo Alto
Approval of Minutes
Public Comment is Permitted. Three (3) minutes per speaker.1,3
7:45PM-7:50 PM
4. August 26, 2020 Draft PTC Meeting Minutes
Committee Items
Commissioner Questions, Comments, Announcements or Future Agenda Items
7:50PM-8:05 PM
Adjournment
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1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the
time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided
that the non-speaking members agree not to speak individually.
2. The Chair may limit Oral Communications to 30 minutes for all combined speakers.
3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers.
Palo Alto Planning & Transportation Commission
Commissioner Biographies, Present and Archived Agendas and Reports are available online:
http://www.cityofpaloalto.org/gov/boards/ptc/default.asp. The PTC Commission members are:
Chair Carolyn Templeton
Vice Chair Giselle Roohparvar
Commissioner Michael Alcheck
Commissioner Bart Hechtman
Commissioner Ed Lauing
Commissioner William Riggs
Commissioner Doria Summa
Get Informed and Be Engaged!
View online: http://midpenmedia.org/category/government/city-of-palo-alto/ or on Channel
26.
Public comment is encouraged. Email the PTC at: Planning.Commission@CityofPaloAlto.org.
Material related to an item on this agenda submitted to the PTC after distribution of the
agenda packet is available for public inspection at the address above.
Americans with Disability Act (ADA)
It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a
manner that is readily accessible to all. Persons with disabilities who require materials in an
appropriate alternative format or who require auxiliary aids to access City meetings, programs,
or services may contact the City’s ADA Coordinator at (650) 329-2550 (voice) or by emailing
ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least
24 hours in advance of the meeting, program, or service.
_______________________
1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the
time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided
that the non-speaking members agree not to speak individually.
2. The Chair may limit Oral Communications to 30 minutes for all combined speakers.
3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers.
Public Comment Instructions
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments may be submitted by email to
planning.commission@CityofPaloAlto.org
2. Spoken public comments using a computer will be accepted through the
teleconference meeting. To address the Board, click on the link below for the
appropriate meeting to access a Zoom-based meeting. Please read the following
instructions carefully.
A. You may download the Zoom client or connect to the meeting in-browser. If
using your browser, make sure you are using a current, up-to-date browser:
Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality
may be disabled in older browsers including Internet Explorer.
B. You will be asked to enter an email address and name. We request that you
identify yourself by name as this will be visible online and will be used to notify
you that it is your turn to speak.
C. When you wish to speak on an agenda item, click on “raise hand”. The
moderator will activate and unmute attendees in turn. Speakers will be notified
shortly before they are called to speak. The Zoom application will prompt you to
unmute your microphone when it is your turn to speak.
D. When called, please limit your remarks to the time limit allotted.
E. A timer will be shown on the computer to help keep track of your comments.
3. Spoken public comments using a smart phone will be accepted through the
teleconference meeting. To address the Council, download the Zoom application onto
your phone from the Apple App Store or Google Play Store and enter the Meeting ID
below. Please follow instructions B-E above.
4. Spoken public comments using a phone use the telephone number listed below. When
you wish to speak on an agenda item hit *9 on your phone so we know that you wish to
speak. You will be asked to provide your first and last name before addressing the
Board. You will be advised how long you have to speak. When called please limit your
remarks to the agenda item and time limit allotted.
https://zoom.us/join
Meeting ID: 959 2402 4700 Phone number: 1 669 900 6833 (you may need to exclude the
initial “1” depending on your phone service)
Planning & Transportation Commission
Staff Report (ID # 11635)
Report Type: City Official Reports Meeting Date: 9/30/2020
City of Palo Alto
Planning & Development Services
250 Hamilton Avenue
Palo Alto, CA 94301
(650) 329-2442
Summary Title: City Official Report
Title: Directors Report, Meeting Schedule and Assignments
From: Jonathan Lait
Recommendation
Staff recommends that the Planning and Transportation Commission (PTC) review and
comment as appropriate.
Background
This document includes the following items:
• PTC Meeting Schedule
• PTC Representative to City Council (Rotational Assignments)
• Tentative Future Agenda
Commissioners are encouraged to contact Vinh Nguyen (Vinhloc.Nguyen@CityofPaloAlto.org)
of any planned absences one month in advance, if possible, to ensure availability of a PTC
quorum.
PTC Representative to City Council is a rotational assignment where the designated
commissioner represents the PTC’s affirmative and dissenting perspectives to Council for quasi-
judicial and legislative matters. Representatives are encouraged to review the City Council
agendas (http://www.cityofpaloalto.org/gov/agendas/council.asp) for the months of their
respective assignments to verify if attendance is needed or contact staff. Prior PTC meetings are
available online at http://midpenmedia.org/category/government/city-of-palo-alto/boards-
and-commissions/planning-and-transportation-commission.
The Tentative Future Agenda provides a summary of upcoming projects or discussion items.
Attachments:
• Attachment A: September 30, 2020 PTC Meeting Schedule and Assignments (DOCX)
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Planning & Transportation Commission
2020 Meeting Schedule & Assignments
2020 Schedule
Meeting Dates Time Location Status Planned Absences
1/08/2020 6:00 PM Council Chambers Cancelled
1/29/2020 6:00 PM Council Chambers Regular
2/12/2020 6:00 PM Council Chambers Regular Riggs
2/26/2020 6:00 PM Council Chambers Regular
3/11/2020 6:00 PM Council Chambers Cancelled
3/25/2020 6:00 PM Council Chambers Cancelled
4/8/2020 6:00 PM Council Chambers Cancelled
4/15/2020 6:00 PM Council Chambers Cancelled
4/29/2020 6:00 PM Virtual Meeting Regular Riggs
5/13/2020 6:00 PM Virtual Meeting Regular
5/27/2020 6:00 PM Virtual Meeting Regular
6/10/2020 6:00 PM Virtual Meeting Regular
6/24/2020 6:00 PM Virtual Meeting Regular
7/08/2020 6:00 PM Virtual Meeting Regular
7/29/2020 6:00 PM Virtual Meeting Cancelled
8/12/2020 6:00 PM Virtual Meeting Regular
8/26/2020 6:00 PM Virtual Meeting Regular
9/9/2020 6:00 PM Virtual Meeting Regular Roohparvar, Riggs
9/30/2020 6:00 PM Virtual Meeting Regular
10/14/2020 6:00 PM Virtual Meeting Regular
10/28/2020 6:00 PM Virtual Meeting Regular
11/11/2020 6:00 PM Cancelled Cancelled Veteran’s Day
11/25/2020 6:00 PM Cancelled Cancelled Day Before Thanksgiving
12/09/2020 6:00 PM Virtual Meeting Regular
12/30/2020 6:00 PM Cancelled Cancelled Day Before New Year’s Eve
2020 Assignments - Council Representation (primary/backup)
January February March April May June
Doria Summa Billy Riggs Michael Alcheck Billy Riggs Ed Lauing Cari Templeton
Michael Alcheck Cari Templeton Ed Lauing Bart Hechtman Giselle Roohparvar Doria Summa
July August September October November December
Giselle Roohparvar Doria Summa Bart Hechtman Michael Alcheck Billy Riggs Ed Lauing
Bart Hechtman Michael Alcheck Billy Riggs Ed Lauing Cari Templeton Giselle Roohparvar
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Planning & Transportation Commission
2020 Tentative Future Agenda
The Following Items are Tentative and Subject to Change:
Meeting Dates Topics
October 14, 2020 • Recommendation on Castilleja Tentative Map, Conditional Use
Permit and Variance
Upcoming items:
Topics
• Study Session on Parking Program Enhancements
• Ordinance Amending 18.42.110 (Wireless Communication Facilities)
• Recommendation to Allow Expiration of a One-Year Ban on Office Uses Above the Ground
Floor From Participating in the City’s Downtown Parking In-Lieu Program
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Planning & Transportation Commission
Staff Report (ID # 11622)
Report Type: Study Session Meeting Date: 9/30/2020
City of Palo Alto
Planning & Development Services
250 Hamilton Avenue
Palo Alto, CA 94301
(650) 329-2442
Summary Title: Update on Planning and Housing 2020 Legislation
Title: Study Session to Review the Pending Planning and Housing
2020 Legislation.
From: Jonathan Lait
Recommendation
This is a Study Session with the Planning and Transportation Commission (PTC) to provide an
update on the current pending State legislation affecting housing and planning policy; no action
is required.
Report Summary
This report provides a summary of key planning and housing related State legislation awaiting
final approval from the Governor. The report focuses on legislation that will likely have more
direct impacts on Palo Alto’s current policies and procedures and includes the anticipated
actions needed by City staff. The deadline for the Governor’s approval is September 30, 2020
and, unless otherwise stated, the bills will be effective January 1, 2021.
Background
There were many housing and planning related bills under consideration in the 2020 legislative
session. Due to the ongoing COVID-19 pandemic impacts, the legislators selectively prioritized
what to pursue, knowing it was unrealistic to expect to get through all the proposed legislation.
With that said, many bills simply did not move forward because time ran out and not because
there was a lack of interest; we can expect to see many bills return next year.
The discussion below summarizes five key bills: AB 2345, AB 725, AB 831, AB 1851, SB 288.
These bills are relevant to our planning and housing policies and are focused primarily on
density bonus, process streamlining, and housing. Links to the State web page for the text of
each bill are provided in the respective discussion sections below.
Discussion
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State Density Bonus
AB 2345 (Gonzalez):
The existing Density Bonus Law requires the City to grant additional residential density and to
provide relief, via concessions and incentives, from certain development standards for projects
that incorporate qualifying amounts of income-restricted units.
A few key changes in the bill include:
• Increases in the maximum density bonus from 35% to 50%.
• Reductions of the minimum thresholds of total affordable Low-Income units to qualify
for both two and three incentives or concessions.
• Reductions in the amount of parking spaces jurisdictions can require for development
of two- and three-bedroom housing units.
• Modifications to the state-mandated annual progress report for Department of Housing
and Community Development to require jurisdictions to include information regarding
the total number of density bonus applications received and approved that year.
The State Density Bonus Law is complex and requires additional review and analysis by staff.
The City will need to update Palo Alto Municipal Code (PAMC), Title 18 (Zoning), Chapter 18.15,
Residential Density Bonus, for consistency with the State law. Staff will provide a more in-depth
review of State-adopted regulations at that time.
Housing Elements/RHNA Changes
AB 725 (Wicks):
This bill is intended to make a dent in California’s “Missing-Middle” housing crisis by requiring
many metropolitan jurisdictions to plan for moderate-density housing (e.g. duplexes,
fourplexes, garden apartments, townhomes, etc.) through the state-mandated general plan
housing elements.
The bill requires applicable jurisdictions to allocate at least 25% of their state-mandated
Regional Housing Needs Allocation (RHNA) for moderate and above-moderate units to housing
sites zoned for at least four units, with moderate income sites being capped at a density of 100
units per acre. These sites must be identified in the housing element inventory as housing
opportunity sites. Accessory dwelling units and junior accessory dwelling units do not count
towards the 25% requirement.
Staff is in the early stages of preparing for the 2023-2031 Housing Element update. During that
process, staff will fully analyze and incorporate the requirements of AB 725. It is too early to
know how extensive the impacts will be from implementing this bill once adopted as State law.
Streamlining/Project Review
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AB 831 (Grayson):
This is a cleanup bill for SB 35, the housing streamlining bill adopted in 2017. The 2017 bill
established a ministerial approval process for qualifying housing projects in jurisdictions that do
not meet their state-mandated goals for housing production. AB 831 is urgency legislation that
will take effect immediately upon the Governor’s signature.
Two key elements of the bill include:
• Limits on local agency discretion regarding its review and approval of public
improvements necessary to complete an SB 35 project (i.e. utilities, pedestrian and
bicycle connections, landscaping, etc.).
• Clarification that SB 35 projects may be modified following SB 35 approval, and
limitation on local agency discretion in reviewing such modification requests.
At this time, only projects including 50% or more affordable housing units are subject to SB 35
streamlining in Palo Alto. The impacts of the bill seem largely to affect our review process and
procedures. It is not anticipated that these types of updates would require changes to the Title
18.
AB 1851 (Wicks):
This bill seeks to support development of housing on religious-use land (churches, synagogues,
etc.). The bill would prohibit the City from requiring the replacement of religious-use parking
spaces eliminated to enable development of an affiliated affordable housing project. The
maximum number of parking spaces that could be eliminated could not exceed 50% of the
number of existing spaces at the time the project was submitted. Additionally, the City could
not require existing, non-complying parking standards to be upgraded. The bill would authorize
a local agency to require up to one parking space per dwelling unit for a religious institution
affiliated housing development project.
The City will need to update Title 18 for consistency with the State law and will provide more
analysis of the effects of the regulations at that time.
California Environmental Quality Act (CEQA)
SB 288 (Wiener):
This bill creates new statutory CEQA exemptions for various transit-related projects and
extends some existing transit-related exemptions, set to expire January 2021, to expire January
2030. The general intent of the bill is to streamline infrastructure improvements.
This bill would create new CEQA exemptions for certain projects, including:
• Projects for the creation or increase of new bus rapid transit, bus, or light rail services
on public rail or highway rights-of-way.
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• Projects for the designation and conversion of general purpose lanes, high-occupancy
toll lanes, high-occupancy vehicle lanes, or highway shoulders.
• Transit prioritization projects.
• Projects that improve customer information and wayfinding for transit riders, bicyclists,
or pedestrians.
• Projects by a public transit agency to construct or maintain infrastructure to charge or
refuel zero-emission transit buses.
• Projects carried out by a city or county to reduce minimum parking requirements.
• Projects for pedestrian and bicycle facilities.
The creation of new CEQA exemptions and the extension of existing ones will help facilitate the
implementation of new transit related projects. The implementation of this bill is not
anticipated to require additional staff work to maintain compliance.
Environmental Review
The California Environmental Quality Act (CEQA) does not apply to the subject matter of this
staff report since it not considered a “project” under CEQA.
Public Notification, Outreach & Comments
The Palo Alto Municipal Code does not require notice of this item because it is a Study Session
and staff did not conduct any public outreach for this discussion.
Next Steps
Staff will review the adopted legislation and determine the appropriate follow-up actions
needed. Title 18 will need to be updated to bring certain code sections into compliance with
the new State law. Staff will develop a workplan and initiate the staff work to codify the
required changes.
Report Author & Contact Information PTC1 Liaison & Contact Information
Clare Campbell, AICP
Manager of Long Range Planning
Rachael Tanner, Assistant Director
(650) 617-3191 (650) 329-2441
clare.campbell@cityofpaloalto.org rachael.tanner@cityofpaloalto.org
1 Emails may be sent directly to the PTC using the following address: planning.commission@cityofpaloalto.org
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Planning & Transportation Commission
Staff Report (ID # 11610)
Report Type: Study Session Meeting Date: 9/30/2020
City of Palo Alto
Planning & Development Services
250 Hamilton Avenue
Palo Alto, CA 94301
(650) 329-2442
Summary Title: Study Session Regarding the Renter Community and Renter
Protections in Palo Alto
Title: Study Session Regarding the Renter Community and Renter
Protections in Palo Alto
From: Jonathan Lait
Recommendation
Staff recommends the Planning and Transportation Commission (PTC) hold a study session to
discuss the City’s participation in the Partnership for the Bay’s Future Challenge Grant program;
to discuss the profile of the Palo Alto renter community; and discuss potential measures that
provide protections for renters.
Report Summary
Through this report and study session, staff seek to introduce the PTC to the Partnership for the
Bay’s Future and the Challenge Grant program. Through the Challenge Grant, the Partnership is
supporting the development of locally-relevant renter protection policies in seven jurisdictions
throughout the Bay Area. The City of Palo Alto was selected to participate.
Additionally, staff hope to share a profile of the renter community in Palo Alto through
qualitative and quantitative data. Lastly, staff will share potential measures Palo Alto can
consider to protect tenants. Staff seeks to ascertain the PTC’s support for or interest in specific
policies. This can help inform the continued work on the Challenge Grant program.
Background
The City Council has identified researching and implementing policies and programs to help
renters as a priority. The need for renter protections was highlighted for the City Council in
2018 when a property owner proposed the conversion of an existing apartment complex into a
hotel. Although the City did not have authority to prevent the loss of the apartment use, City
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Planning & Development Services Department Page 2
Council acted on August 27, 2018, to pass an emergency ordinance that gave the tenants some
relocation assistance.1 A permanent ordinance was adopted on September 17, 2018.2
Subsequently, at the City Council meeting on September 10, 2018, Councilmember Dubois
introduced a Colleagues’ Memorandum that called for a thorough review of renter
protections.3 At that time, Council directed staff to review the existing renter protection
ordinance and comparable ordinances in the San Francisco Bay Area; evaluate reasonable
relocation assistance to be provided for tenants of properties with 2 or more units displaced
due to change of use, sizable rental increases, or eviction without just cause, while protecting
the fair rights of property owners; strengthen enforcement measures to ensure compliance
with and penalties for violations of Palo Alto’s existing requirement to offer an annual lease to
tenants; consider other updates to existing renter protections and mediation program as
needed to continue a healthy and diverse community; and discuss the full range of renter
protections. Discussion topics to include just cause evictions and rent stabilization among other
protections.
Following that, at City Council meeting on September 23, 2019, Councilmembers Dubois and
Kou introduced a Colleagues’ Memorandum that recommended that the City pursue housing
goals that would address the socio-economic diversity and affordability of the community.4 At
that time, Council directed staff to prioritize exploring elements of the City’s affordable housing
activities and accelerate bringing them to the Planning and Transportation Commission and
Council.
Unfortunately, due to staff vacancies in the Planning & Development Services Department, a
lack of staff resources and expertise in this policy area prevented progress from being made.
The City successfully competed for The Challenge Grant, which provides the needed resources
to allow the City to thoughtfully pursue renter protection policies.
Partnership for the Bay’s Future & Challenge Grant
The Challenge Grant Fellowship is an effort of Partnership for the Bay’s Future. The Partnership
for the Bay’s Future (PBF) is a collaborative effort to build a prosperous, inclusive, vibrant and
livable Bay Area. The Partnership launched in early 2019 with the support of the San Francisco
Foundation, the Chan Zuckerberg Initiative, the Ford Foundation, Local Initiatives Support
Corporation (LISC), Facebook, Genentech, Kaiser Permanente, the William and Flora Hewlett
Foundation, the David and Lucile Packard Foundation, the Stupski Foundation, and Silicon
Valley Community Foundation. PBF brings together leaders from community, businesses, local
philanthropies, and government to find solutions to ensure that people of all backgrounds and
economic statuses can call the Bay Area home. The PBF’s goal is to increase housing
affordability for all and ensure vibrant communities of racial equity and economic inclusion.
1 Link to City Council Action Minutes:
https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=45199.74&BlobID=66757
2 https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=40175.38&BlobID=67002
3 https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=65189.46&BlobID=66602
4 https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=66804.19&BlobID=73927
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In August of 2019, City Staff submitted a Challenge Grant application to Partnership for the
Bay’s Future. Staff recognized that the grant, which provides a talented mid-career Fellow to
each participating jurisdiction for 2 years, could fill a critical capacity gap and provide the
resources needed to meet the requests of Council members. Palo Alto’s Fellow will assist in the
development, passage, and implementation of legislation that to protect renters and preserve
affordable housing. Palo Alto’s Fellow is placed within the Planning and Development Services
Department.
PolicyLink is managing the Fellowship, building a collaborative and supportive community
between Fellows and providing Technical Assistance to advance the work in their assigned
jurisdictions. PolicyLink is a national research and action institute advancing racial and
economic equity. PolicyLink will also provide opportunities for staff and elected officials from
the seven jurisdictions to come together to learn from one another. In addition, Challenge
Grant jurisdictions select a community partner to work alongside the City and Challenge Grant
Fellow. Palo Alto selected Silicon Valley at Home (SV@Home) as our community partner.
Discussion
Profile of Renters and Rental Housing Units in Palo Alto
Rental Housing Unit Type
According to 2018 American Community Survey data (Attachment A), renters occupy 45% of
Palo Alto’s housing stock; that is 11,764 renter-occupied units out of 26,212 total units. The
largest portion of rental units, 27%, single-family homes. This is followed by large apartment
complexes of 50 units and more; such properties account for 21.9% of rental housing units.
Figure 1 provides a graphic illustration of the distribution.
Table 1: Palo Alto Rental Housing Stock by Type
Single
Family
Detached
Single
Family
Attached
Duplex
Triplex
and
Fourplex
Small
Apartment
(5 to 9
units)
Medium
Size
Apartment
(10 to 19
units)
Medium
Size
Apartment
(20 to 49
units)
Large
Apartment
Complex
(50+ units)
Total
Number
of Units 3,234 489 294 1,002 1,362 1,228 1,579 2,576 11,764
% of
Total
Units
27.49% 4.16% 2.50% 8.52% 11.58% 10.44% 13.42% 21.90% 100.00%
Source: American Community Survey
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Affordable Rental Housing in Palo Alto
Of these 11,764 housing units, approximately 1,696 are permanently affordable housing units.
This includes 100% affordable housing developments as well as below-market-rate (BMR) rental
units included within market-rate housing developments. That accounts for approximately 14%
of the total rental housing units in Palo Alto. The permanently affordable housing units serve
households in the extremely low (ELI) and very low-income (VLI) categories, between 30-60%
AMI. BMR units are not subsidized and typically serve households in the low income categories,
between 60-80% AMI. To see what the 2020 AMI levels are for Santa Clara County, please see
Table 2.
Table 2
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Planning & Development Services Department Page 5
Source: https://www.santaclaraca.gov/home/showdocument?id=67437
Rental Household Income
The incomes of the rental households directly relates to the ability of those households to
afford the rent without using a significant portion of their income for rent. Of renting
households, 25% make less than $50,000; 19% make between $50,000 to $100,000; and the
largest percentage of renters are households making more than $150,000 (39%).
Because the census data does not say the number of household members in each of these
households, it is difficult to say where these households fall within the area median income
(AMI) for Santa Clara County. The AMI for a four-person household in Santa Clara County is
$141,000; $113,300 for a two-person household. According to the 2015-2023 City of Palo Alto
Housing Element, 95% of renter households are between 1-4 persons in size. Using the AMI
and the household income data, we might estimate that 39% of the renter households in Palo
Alto are most likely making more than the area median income. Conversely, this means that
perhaps 61% of the population are making less than those median incomes.
Palo Alto Rental Costs
Palo Alto rental rates range across housing types. According to the American Community
Survey, the Median Rent in Palo Alto (2014-2018) was $2,471.00. This includes long-term
renters as well as renters who newly entered the local real estate market and those that are
paying affordable rents. The median in and of itself indicates that half of the enters pay more
than the median and half pay less. Other data, such as that provided by Zillow in Figure 2, draws
on new leases. One difference between Zillow (and other real estate-based sites) and the ACS is
that these sites use the postings made by landlords and property managers to gather data
regarding the median rental prices in a community.
Figure 2
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Source: https://bayareaequityatlas.org/indicators/market-rent#/?geo=07000000000655282
Cost Burdened Renters
As can be seen in Table 3, 59% of the rental households in Palo Alto make more than $75,000.
For those households making more than $75,000, only 17% of those households are considered
rent burdened. Being rent burdened is defined by the Department of Housing and Urban
Development (HUD) as a household spending more than 30% of their collective income on their
rent. As rental costs have risen throughout the Bay Area and Palo Alto, many households have
become severely rent burdened and are spending more than 50% of their income on their rent.
The truly remarkable thing about Table 3 is that readers can see that the vast majority of
households making less than $75,000 are cost burdened. Of the 11,764 total rental units, than a
third of them are considered cost burdened. This indicates that lower income households in
Palo Alto are the most challenged to pay their rent and have limited resources to use for other
needs such as food, child care, transportation, medical care, education, and other needs.
Table 3: Rent Burdened Households in Palo Alto
Number
of Units
Percent of
Total Renter
Units
Cost
Burdened
Units
Percent of Cost
Burdened Units
in Income Tier
Zero or Negative Income 369 3.1%
Less than $20,000 1344 11.4% 1135 84.45%
$20,000 to $34,999 752 6.4% 672 89.36%
$35,000 to $49,999 600 5.1% 449 74.83%
$50,000 to $74,999 1319 11.2% 968 73.39%
$75,000 or more 6958 59.1% 1185 17.03%
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No Cash Rent 422 3.8%
TOTAL UNITS 11764 100% 4409 37.48%
Source: American Community Survey
Another data source, the National Low-Income Housing Coalition (NLIHC)’s annual report titled
“Out of Reach 2020”, examines rent burden from a different perspective and reverse engineers
the hourly rate or salary required to rent a two-bedroom unit. The NLIHC refers to this hourly
wage as housing wage, more specifically how much a household must earn to be able to have
30% of their income equal the Fair Market Rent set by HUD. Of note is that based on their
methodology, the San Jose-Sunnyvale-Santa Clara HUD Metro Fair-Market-Rent Area (HMFA)
that essentially encompasses Santa Clara County is the second most expensive area in the state.
San Francisco HMFA is the first. A household in Santa Clara County would need to collectively
earn $114,240 to be able to afford a two-bedroom unit, as can be seen in Figure 3.
Figure 3
Analysis5
Renter Protection Policies
Existing Policies
5 The information provided in this section is based on analysis prepared by the report author prior to the public
hearing. The Planning and Transportation Commission in its review of the administrative record and based on
public testimony may reach a different conclusion from that presented in this report and may choose to take an
action that is different than the recommended action.
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Palo Alto has several permanent rental protection policies in place. Palo Alto’s mediation
program has been in existence for over 30 years, helping renters and landlords talk to each
other to resolve disputes. Palo Alto also has another common renter protection, which is the
right to a one-year lease. As previously mentioned, City Council adopted a tenant relocation
assistance policy for housing developments of 50 units or more. There is room for more to be
done with these policies, as they touch on thought processes central to tenant protection work
like a tenant’s right to representation and the promotion of housing stability, but there are also
other protection policies that could be considered.
Common Renter Protections
Throughout the state of California, communities have implemented a range of additional renter
protection policies. Some of the most common—and at times controversial—include requiring
just-cause for evictions, price controls (commonly known as rent control or rent caps), and
tenant right to organize.
According to Policylink’s All-In-Cities Policy Toolkit, Just Cause Eviction Ordinances are defined
as a form of tenant protection designed to prevent arbitrary, retaliatory, or discriminatory
evictions by establishing that landlords can only evict renters for specific reasons — just causes
— such as failure to pay rent. Part of a community’s work on a just cause ordinance is figuring
out what they believe are acceptable, or just, reasons to evict a tenant and each community
has different needs. For example, Oakland has 11 reasons but San Jose has 17. The
aforementioned Policy Toolkit also speaks about the import of renter protection policies as a
way of promoting racial equity and anti-displacement work, as renters are often
disproportionately comprised of people of color and/or low income households.
Another tool for equitable development according to Policylink is rent control (sometimes
known as price control). Rent control is often coupled with just cause ordinances to mitigate
high rent increases that can displace residents when the economy is doing well. Rent control
protects tenants in privately owned residential properties from excessive rent increases by
mandating reasonable and gradual rent increases, while at the same time ensuring that
landlords receive a fair return on their investment. Economists often caution policymakers
about rent control, fearing that it may dissuade the creation of new housing units. That being
said, policymakers and economists alike agree that it can be an effective tool against
displacement if it is only used for shorter periods of time.
Renter Protections and COVID-19
Keeping people housed is to reduce the spread of COVID-19. If exposed to or after testing
positive for COVID-19, individuals need a place to isolate or quarantine. Furthermore, to reduce
exposure, shelter in place, and limit overcrowding, safe and quality housing is necessary. On
March 23, 2020 City Council considered and passed a moratorium to ensure that Palo Altans
cannot be evicted for nonpayment of rent due to COVID-19 related reasons. 6
6 https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=64347.18&BlobID=75852
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The City was not alone in passing a moratorium. Santa Clara County, the State of California, and
recently the Centers for Disease Control passed eviction moratoria or other COVID-19 related
housing protections. The various laws interact in different ways and provide different
protections for renters. Renters should consult legal guidance regarding the protection most
appropriate to their situation.
On August 31, 2020, the California legislature passed and the Governor signed AB 3088,
otherwise known as the COVID-19 Tenant Relief Act of 2020. This bill attempts to give more
structure and support to both landlords and tenants. Within this bill are a myriad of protections
for small landlords with mortgages as well as renters incapable of paying their rent due to
COVID-19 related issues, building upon the initial work that eviction moratoriums provided and
providing some additional coverage for small landlords who use their tenants’ rent to help pay
their mortgage. If not extended, the County moratorium will expire. Due to the passage of AB
3088, local experts have opined that they do not expect the Governor to extend this executive
order.
Since reducing evictions is necessary to reducing the spread of COVID-19 and maintaining the
health and welfare of the public, the Center for Disease Control also passed a nation-wide
eviction moratorium set to expire at the end of the calendar year 2020. This moratorium
applies to households who earn income below $99,000 annually.
As the economic recession continues or worsens, if the pandemic persists and individuals
cannot work or remain unemployed, the number of households who cannot pay their rent and
face eviction may increase. While these renter protections are very helpful in protecting the
public, they are all time bound and have set expiration dates. A number of households in the
nation, including the Bay Area and Palo Alto, may face eviction. Staff continue to work with
PolicyLink and others to ascertain data regarding the number of eviction-vulnerable households
in Palo Alto.
In an effort to provide support to such households, the federal government allocated funds
through the CARES Act to support eviction prevention programs; programs that assist renters
with housing costs so they can maintain their housing. Palo Alto received $294,000 in additional
Community Development Block Grant funds (CDBG) through the CARES Act. On May 5, 2020,
the City Council allocated a large portion of that additional funds as well as other CDBG monies
towards eviction prevention programs.7
State Policies
The California legislature passed and Governor Newsom signed AB 1482, known as the Tenant
Protection Act of 2019. AB 1482 caps annual rent increases statewide at 5% plus the rate of
7 May 5, 2020 Staff Report for City Council Regarding CARES Act and CDBG:
http://cityofpaloalto.org/civicax/filebank/documents/76463
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inflation for much of the state’s multifamily housing stock. It also requires landlords to show a
“just cause” to evict tenants in place for 12 months or more. It went into effect on January 1,
2020.
While AB 1482 provides a framework for allowable rent increases, the enforcement of these
increases is not addressed by the law. A tenant who feels the landlords have violated the law
may seek mediation or redress from a court for violation of the law. Such means of addressing
alleged violations may be beyond the means of many, especially low-income tenants or those
who face a language barrier. The Planning Department and the PBF Fellow are working together
with local grassroots organizations to understand local needs related to the implementation of
this law.
The PBF Fellow has engaged in conversations with local renters. Through these conversations
the Fellow has learned that many renters want to learn more about these laws. There is some
confusion regarding what applies to and protects both tenants and landlords. This may be an
opportunity for the City, SV@Home, and local community members to work together to
provide information.
In the 2017 Councilmember Memo on Renter Protections, City Attorney Molly Stump included
several useful pieces of research. This included an analysis conducted by the City of Fremont
through Management Partners. They analyzed just cause evictions and rent control. The
conclusion of said analysis states that the most effective policies were those that responded to
needs of the community, as told to the policymakers by members of the renter
community. Because there are a number of renter protections folded into AB1482 and AB3088,
it will be up to Palo Altans to decide how these larger state laws will be implemented at the city
level.
Next Steps
Through this project, the City will continue to explore the renter protection policies that best fit
Palo Alto. Through PolicyLink, the cohort of seven jurisdictions, and other resources, the City
has significant access to guidance regarding best practices and examples from nearby
jurisdictions that can inform what may best serve Palo Altans.
In addition, the Planning and Development Services Department continues to find ways to
gather qualitative information from local Palo Alto renters to better understand the challenges
they face. Reaching out and building rapport with the large and disparate renter community in
Palo Alto has been challenged by COVID (more in the next section). Nevertheless, the City is
partnering with other organizations to host webinars, virtual calls, and other virtual activities to
get in touch with more renters, hear their stories, and learn what can help improve the stability
of renters in Palo Alto.
PTC Discussion
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This report and study session aim to introduce this project to the PTC. Staff look forward to
hearing if PTC members have particular data points they would like to further discuss or areas
where further research may be illuminating. Staff will be prepared to answer questions about
existing local renter policies as well as state renter protection policies and their implications for
Palo Altans. Lastly, staff look forward to learning more from the PTC regarding creative ways
the City may continue to reach out to the Palo Alto renter community, especially any suggested
means to reach hard-to-reach populations. In addition to these three topics, the PTC will also
be able to hear from community members and may have additional policies or aspects of this
topic that may be useful for staff to explore.
Environmental Review
This discussion is not a project under the California Environmental Quality Act.
Public Notification, Outreach & Comments
The Challenge Grant proposal submitted by the City last fall envisioned a period of outreach
including small group meetings, focus groups, workshops, and other events to hear directly
from renters regarding any challenges they face. Due to the pandemic, the City is working to
adapt these outreach methods to be virtual. Over the summer, significant progress has been
made setting up virtual meetings and most recently a webinar regarding the COVID-19 eviction
moratoria. As phone calls and virtual meetings have become more normalized, the team will
continue to enhance opportunities to hear from renters directly and develop policies and
strategies that address the needs of Palo Alto’s renter community.
Staff is cognizant, though, that the lack of equitably distributed digital resources and computing
hardware (access to the internet, laptop computer, etc.) can prevent the most marginalized
persons from participating. Partnering with organizations like Life Moves, who operate the
Opportunity Center, Downtown Streets Team, and others has been one avenue taken to get in
touch with harder-to-reach Palo Altans.
The Planning Department and the PBF Fellow are working with the Public Information Officer to
create a Renter Resource Center that will live on the City’s website and act as a guide for both
tenants and landlords, providing webinars, contact information for partner organizations,
sample forms and summaries of laws. It is the hope of the program that this will also be two-
way interaction with concerned Palo Altans, providing them a space to give feedback and
answer surveys about their experiences.
Report Author & Contact Information PTC8 Liaison & Contact Information
Lauren Bigelow Rachael Tanner, Assistant Director
(510) 663-4387 (650) 329-2441
lauren.bigelow@cityofpaloalto.org rachael.tanner@cityofpaloalto.org
8 Emails may be sent directly to the PTC using the following address: planning.commission@cityofpaloalto.org
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Planning & Transportation Commission
Staff Report (ID # 11636)
Report Type: Approval of Minutes Meeting Date: 9/30/2020
City of Palo Alto
Planning & Development Services
250 Hamilton Avenue
Palo Alto, CA 94301
(650) 329-2442
Summary Title: August 26, 2020 Draft Meeting Minutes
Title: August 26, 2020 Draft PTC Meeting Minutes
From: Jonathan Lait
Recommendation
Staff recommends that the Planning and Transportation Commission (PTC) adopt the meeting
minutes.
Background
Draft minutes from the August 26, 2020 Planning and Transportation Commission (PTC)
meetings were made available to the Commissioners prior to the September 30, 2020 meeting
date. The draft PTC minutes can be viewed on line on the City’s website at
http://www.cityofpaloalto.org/gov/boards/ptc/default.asp.
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