HomeMy WebLinkAbout2024-09-25 Planning & Transportation Commission Agenda PacketPLANNING AND TRANSPORTATION COMMISSION
Regular Meeting
Wednesday, September 25, 2024
Council Chambers & Hybrid
6:00 PM
Planning and Transportation Commission meetings will be held as “hybrid” meetings with the
option to attend by teleconference/video conference or in person. To maximize public safety
while still maintaining transparency and public access, members of the public can choose to
participate from home or attend in person. Information on how the public may observe and
participate in the meeting is located at the end of the agenda. Masks are strongly encouraged if
attending in person. The meeting will be broadcast on Cable TV Channel 26, live on
YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media
Center https://midpenmedia.org. Commissioner names, biographies, and archived agendas and
minutes are available at http://bit.ly/PaloAltoPTC.
VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/91641559499)
Meeting ID: 916 4155 9499 Phone: 1(669)900‐6833
PUBLIC COMMENTS
Public comments will be accepted both in person and via Zoom for up to three minutes or an
amount of time determined by the Chair. All requests to speak will be taken until 5 minutes
after the staff’s presentation. Written public comments can be submitted in advance to
Planning.Commission@CityofPaloAlto.org and will be provided to the Commission and available
for inspection on the City’s website. Please clearly indicate which agenda item you are
referencing in your subject line.
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 ten
(10) minutes at the discretion of the Chair, provided that the non‐speaking members agree not
to speak individually. The Chair may limit Public Comments to thirty (30) minutes for all
combined speakers. The Chair may reduce the allowed time to speak for Study Sessions and
Action Items to two (2) minutes or less to accommodate a larger number of speakers.
PowerPoints, videos, or other media to be presented during public comment are accepted only
by email to Planning.Commission@CityofPaloAlto.org at least 24 hours prior to the meeting.
Once received, the Clerk will have them shared at public comment for the specified item. To
uphold strong cybersecurity management practices, USB’s or other physical electronic storage
devices are not accepted.
Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks,
posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do not
create a facility, fire, or safety hazard; and (3) persons with such items remain seated when
displaying them and must not raise the items above shoulder level, obstruct the view or
passage of other attendees, or otherwise disturb the business of the meeting.
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
PUBLIC COMMENT
Members of the public may speak to any item NOT on the agenda. Three (3) minutes per speaker.
AGENDA CHANGES, ADDITIONS AND DELETIONS
The Chair or Commission majority may modify the agenda order to improve meeting management.
CITY OFFICIAL REPORTS
1.Director's Report, Meeting Schedule and Assignments
STUDY SESSION
Public Comment is Permitted. Three (3) minutes per speaker.
2.Study Session to Review Potential Amendments to the Regulations for the Affordable
Housing Incentive Program (AHIP) and Housing Incentive Program (HIP) in Title 18
(Zoning Ordinance) of the Palo Alto Municipal Code to Implement Programs 3.3 and 3.4
of the Adopted 2023‐2031 Housing Element
6:10 PM – 8:10 PM
APPROVAL OF MINUTES
Public Comment is Permitted. Three (3) minutes per speaker.
3.Approval of Planning & Transportation Commission Draft Summary Minutes of May 29,
2024
4.Approval of Planning & Transportation Commission Draft Verbatim & Summary Minutes
of June 26, 2024
5.Approval of Planning & Transportation Commission Draft Summary Minutes of April 24,
2024
COMMISSIONER QUESTIONS, COMMENTS, ANNOUNCEMENTS OR FUTURE MEETINGS AND
AGENDAS
Members of the public may not speak to the item(s).
ADJOURNMENT
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. W r i t t e n p u b l i c c o m m e n t s m a y b e s u b m i t t e d b y e m a i l t o
planning.commission@cityofpaloalto.org.
2. Spoken public comments using a computer will be accepted through the
teleconference meeting. To address the Commission, click on the link below to access a
Zoom‐based meeting. Please read the following instructions carefully.
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.
You may 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.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. 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 Commission, download the Zoom application
onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID
below. Please follow the instructions 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
Commission. You will be advised how long you have to speak. When called please limit
your remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 916 4155 9499 Phone:1‐669‐900‐6833
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.
PLANNING AND TRANSPORTATION COMMISSIONRegular MeetingWednesday, September 25, 2024Council Chambers & Hybrid6:00 PMPlanning and Transportation Commission meetings will be held as “hybrid” meetings with theoption to attend by teleconference/video conference or in person. To maximize public safetywhile still maintaining transparency and public access, members of the public can choose toparticipate from home or attend in person. Information on how the public may observe andparticipate in the meeting is located at the end of the agenda. Masks are strongly encouraged ifattending in person. The meeting will be broadcast on Cable TV Channel 26, live onYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org. Commissioner names, biographies, and archived agendas andminutes are available at http://bit.ly/PaloAltoPTC. VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/91641559499)Meeting ID: 916 4155 9499 Phone: 1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance toPlanning.Commission@CityofPaloAlto.org and will be provided to the Commission and availablefor inspection on the City’s website. Please clearly indicate which agenda item you arereferencing in your subject line.Spokespersons that are representing a group of five or more people who are identified aspresent at the meeting at the time of the spokesperson's presentation will be allowed up to ten(10) minutes at the discretion of the Chair, provided that the non‐speaking members agree notto speak individually. The Chair may limit Public Comments to thirty (30) minutes for allcombined speakers. The Chair may reduce the allowed time to speak for Study Sessions andAction Items to two (2) minutes or less to accommodate a larger number of speakers.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to Planning.Commission@CityofPaloAlto.org at least 24 hours prior to the meeting.Once received, the Clerk will have them shared at public comment for the specified item. Touphold strong cybersecurity management practices, USB’s or other physical electronic storagedevices are not accepted.Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks,
posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do not
create a facility, fire, or safety hazard; and (3) persons with such items remain seated when
displaying them and must not raise the items above shoulder level, obstruct the view or
passage of other attendees, or otherwise disturb the business of the meeting.
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
PUBLIC COMMENT
Members of the public may speak to any item NOT on the agenda. Three (3) minutes per speaker.
AGENDA CHANGES, ADDITIONS AND DELETIONS
The Chair or Commission majority may modify the agenda order to improve meeting management.
CITY OFFICIAL REPORTS
1.Director's Report, Meeting Schedule and Assignments
STUDY SESSION
Public Comment is Permitted. Three (3) minutes per speaker.
2.Study Session to Review Potential Amendments to the Regulations for the Affordable
Housing Incentive Program (AHIP) and Housing Incentive Program (HIP) in Title 18
(Zoning Ordinance) of the Palo Alto Municipal Code to Implement Programs 3.3 and 3.4
of the Adopted 2023‐2031 Housing Element
6:10 PM – 8:10 PM
APPROVAL OF MINUTES
Public Comment is Permitted. Three (3) minutes per speaker.
3.Approval of Planning & Transportation Commission Draft Summary Minutes of May 29,
2024
4.Approval of Planning & Transportation Commission Draft Verbatim & Summary Minutes
of June 26, 2024
5.Approval of Planning & Transportation Commission Draft Summary Minutes of April 24,
2024
COMMISSIONER QUESTIONS, COMMENTS, ANNOUNCEMENTS OR FUTURE MEETINGS AND
AGENDAS
Members of the public may not speak to the item(s).
ADJOURNMENT
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. W r i t t e n p u b l i c c o m m e n t s m a y b e s u b m i t t e d b y e m a i l t o
planning.commission@cityofpaloalto.org.
2. Spoken public comments using a computer will be accepted through the
teleconference meeting. To address the Commission, click on the link below to access a
Zoom‐based meeting. Please read the following instructions carefully.
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.
You may 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.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. 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 Commission, download the Zoom application
onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID
below. Please follow the instructions 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
Commission. You will be advised how long you have to speak. When called please limit
your remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 916 4155 9499 Phone:1‐669‐900‐6833
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.
PLANNING AND TRANSPORTATION COMMISSIONRegular MeetingWednesday, September 25, 2024Council Chambers & Hybrid6:00 PMPlanning and Transportation Commission meetings will be held as “hybrid” meetings with theoption to attend by teleconference/video conference or in person. To maximize public safetywhile still maintaining transparency and public access, members of the public can choose toparticipate from home or attend in person. Information on how the public may observe andparticipate in the meeting is located at the end of the agenda. Masks are strongly encouraged ifattending in person. The meeting will be broadcast on Cable TV Channel 26, live onYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org. Commissioner names, biographies, and archived agendas andminutes are available at http://bit.ly/PaloAltoPTC. VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/91641559499)Meeting ID: 916 4155 9499 Phone: 1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance toPlanning.Commission@CityofPaloAlto.org and will be provided to the Commission and availablefor inspection on the City’s website. Please clearly indicate which agenda item you arereferencing in your subject line.Spokespersons that are representing a group of five or more people who are identified aspresent at the meeting at the time of the spokesperson's presentation will be allowed up to ten(10) minutes at the discretion of the Chair, provided that the non‐speaking members agree notto speak individually. The Chair may limit Public Comments to thirty (30) minutes for allcombined speakers. The Chair may reduce the allowed time to speak for Study Sessions andAction Items to two (2) minutes or less to accommodate a larger number of speakers.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to Planning.Commission@CityofPaloAlto.org at least 24 hours prior to the meeting.Once received, the Clerk will have them shared at public comment for the specified item. Touphold strong cybersecurity management practices, USB’s or other physical electronic storagedevices are not accepted.Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks,posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do notcreate a facility, fire, or safety hazard; and (3) persons with such items remain seated whendisplaying them and must not raise the items above shoulder level, obstruct the view orpassage of other attendees, or otherwise disturb the business of the meeting.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
PUBLIC COMMENT
Members of the public may speak to any item NOT on the agenda. Three (3) minutes per speaker.
AGENDA CHANGES, ADDITIONS AND DELETIONS
The Chair or Commission majority may modify the agenda order to improve meeting management.
CITY OFFICIAL REPORTS
1.Director's Report, Meeting Schedule and Assignments
STUDY SESSION
Public Comment is Permitted. Three (3) minutes per speaker.
2.Study Session to Review Potential Amendments to the Regulations for the Affordable
Housing Incentive Program (AHIP) and Housing Incentive Program (HIP) in Title 18
(Zoning Ordinance) of the Palo Alto Municipal Code to Implement Programs 3.3 and 3.4
of the Adopted 2023‐2031 Housing Element
6:10 PM – 8:10 PM
APPROVAL OF MINUTES
Public Comment is Permitted. Three (3) minutes per speaker.
3.Approval of Planning & Transportation Commission Draft Summary Minutes of May 29,
2024
4.Approval of Planning & Transportation Commission Draft Verbatim & Summary Minutes
of June 26, 2024
5.Approval of Planning & Transportation Commission Draft Summary Minutes of April 24,
2024
COMMISSIONER QUESTIONS, COMMENTS, ANNOUNCEMENTS OR FUTURE MEETINGS AND
AGENDAS
Members of the public may not speak to the item(s).
ADJOURNMENT
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. W r i t t e n p u b l i c c o m m e n t s m a y b e s u b m i t t e d b y e m a i l t o
planning.commission@cityofpaloalto.org.
2. Spoken public comments using a computer will be accepted through the
teleconference meeting. To address the Commission, click on the link below to access a
Zoom‐based meeting. Please read the following instructions carefully.
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.
You may 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.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. 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 Commission, download the Zoom application
onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID
below. Please follow the instructions 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
Commission. You will be advised how long you have to speak. When called please limit
your remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 916 4155 9499 Phone:1‐669‐900‐6833
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.
PLANNING AND TRANSPORTATION COMMISSIONRegular MeetingWednesday, September 25, 2024Council Chambers & Hybrid6:00 PMPlanning and Transportation Commission meetings will be held as “hybrid” meetings with theoption to attend by teleconference/video conference or in person. To maximize public safetywhile still maintaining transparency and public access, members of the public can choose toparticipate from home or attend in person. Information on how the public may observe andparticipate in the meeting is located at the end of the agenda. Masks are strongly encouraged ifattending in person. The meeting will be broadcast on Cable TV Channel 26, live onYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org. Commissioner names, biographies, and archived agendas andminutes are available at http://bit.ly/PaloAltoPTC. VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/91641559499)Meeting ID: 916 4155 9499 Phone: 1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance toPlanning.Commission@CityofPaloAlto.org and will be provided to the Commission and availablefor inspection on the City’s website. Please clearly indicate which agenda item you arereferencing in your subject line.Spokespersons that are representing a group of five or more people who are identified aspresent at the meeting at the time of the spokesperson's presentation will be allowed up to ten(10) minutes at the discretion of the Chair, provided that the non‐speaking members agree notto speak individually. The Chair may limit Public Comments to thirty (30) minutes for allcombined speakers. The Chair may reduce the allowed time to speak for Study Sessions andAction Items to two (2) minutes or less to accommodate a larger number of speakers.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to Planning.Commission@CityofPaloAlto.org at least 24 hours prior to the meeting.Once received, the Clerk will have them shared at public comment for the specified item. Touphold strong cybersecurity management practices, USB’s or other physical electronic storagedevices are not accepted.Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks,posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do notcreate a facility, fire, or safety hazard; and (3) persons with such items remain seated whendisplaying them and must not raise the items above shoulder level, obstruct the view orpassage of other attendees, or otherwise disturb the business of the meeting.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting 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 maybe heard before or after the time estimated on the agenda. This may occur in order to bestmanage the time at a meeting or to adapt to the participation of the public.CALL TO ORDER/ ROLL CALLPUBLIC COMMENT Members of the public may speak to any item NOT on the agenda. Three (3) minutes per speaker.AGENDA CHANGES, ADDITIONS AND DELETIONSThe Chair or Commission majority may modify the agenda order to improve meeting management.CITY OFFICIAL REPORTS1.Director's Report, Meeting Schedule and AssignmentsSTUDY SESSIONPublic Comment is Permitted. Three (3) minutes per speaker.2.Study Session to Review Potential Amendments to the Regulations for the AffordableHousing Incentive Program (AHIP) and Housing Incentive Program (HIP) in Title 18(Zoning Ordinance) of the Palo Alto Municipal Code to Implement Programs 3.3 and 3.4of the Adopted 2023‐2031 Housing Element6:10 PM – 8:10 PMAPPROVAL OF MINUTESPublic Comment is Permitted. Three (3) minutes per speaker.3.Approval of Planning & Transportation Commission Draft Summary Minutes of May 29,20244.Approval of Planning & Transportation Commission Draft Verbatim & Summary Minutesof June 26, 20245.Approval of Planning & Transportation Commission Draft Summary Minutes of April 24,2024COMMISSIONER QUESTIONS, COMMENTS, ANNOUNCEMENTS OR FUTURE MEETINGS ANDAGENDAS
Members of the public may not speak to the item(s).
ADJOURNMENT
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. W r i t t e n p u b l i c c o m m e n t s m a y b e s u b m i t t e d b y e m a i l t o
planning.commission@cityofpaloalto.org.
2. Spoken public comments using a computer will be accepted through the
teleconference meeting. To address the Commission, click on the link below to access a
Zoom‐based meeting. Please read the following instructions carefully.
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.
You may 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.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. 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 Commission, download the Zoom application
onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID
below. Please follow the instructions 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
Commission. You will be advised how long you have to speak. When called please limit
your remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 916 4155 9499 Phone:1‐669‐900‐6833
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.
Item No. 1. Page 1 of 2
Planning & Transportation Commission
Staff Report
From: Planning and Development Services Director
Lead Department: Planning and Development Services
Meeting Date: September 25, 2024
Report #: 2409-3473
TITLE
Director's Report, Meeting Schedule and Assignments
RECOMMENDATION
Staff recommends that the Planning and Transportation Commission (PTC) review and
comment as appropriate.
BACKGROUND
This document includes the following items:
Upcoming PTC Agenda Items
PTC Meeting Schedule
PTC Representative to City Council (Rotational Assignments)
Commissioners are encouraged to contact Veronica Dao
(Veronica.Dao@CityofPaloAlto.org) to notify staff of any planned absences one
month in advance, if possible, to ensure the 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 (https://www.cityofpaloalto.org/City-Hall/City-Council/Council-Agendas-Minutes) for
the months of their respective assignments to verify if attendance is needed or contact staff.
Prior PTC meetings are available online at https://midpenmedia.org/category/government/city-
of-palo-alto/boards-and-commissions/planning-and-transportation-commission.
UPCOMING PTC ITEMS
October 9, 2024
Stream Corridor Protection Ordinance update recommendations
Item 1
Staff Report
Packet Pg. 5
Item No. 1. Page 2 of 2
October 30, 2024
Draft Ordinances for Dark Skies/Lighting and Bird-Friendly Design
ATTACHMENTS
Attachment A: 2024 Meeting Schedule & Assignments
Attachment B: 2025 Meeting Schedule
AUTHOR/TITLE:
Jennifer Armer, AICP, Assistant Director
Item 1
Staff Report
Packet Pg. 6
Planning & Transportation Commission
2024 Meeting Schedule & Assignments
5
5
8
9
2024 Schedule
Meeting Dates Time Location Status Planned Absences
1/10/2024 6:00 PM Hybrid Canceled
1/31/2024 6:00 PM Hybrid Regular
2/14/2024 6:00 PM Hybrid Canceled
2/28/2024 6:00 PM Hybrid Regular
3/13/2024 5:00 PM Hybrid Special
Joint Meeting w/ HRC
3/27/2024 6:00 PM Hybrid Regular Hechtman
4/10/2024 6:00 PM Hybrid Regular
4/15/2024 5:30 PM Hybrid Joint Meeting w/ Council
4/24/2024 6:00 PM Hybrid Regular
5/8/2024 6:00 PM Hybrid Regular Lu
5/29/2024 6:00 PM Hybrid Regular
6/12/2024 6:00 PM Hybrid Regular
6/26/2024 6:00 PM Hybrid Regular
7/10/2024 6:00 PM Hybrid Regular
7/31/2024 6:00 PM Hybrid Canceled
8/14/2024 5:30 PM Hybrid Special
8/28/2024 6:00 PM Hybrid Regular
9/11/2024 6:00 PM Hybrid Regular
9/25/2024 6:00 PM Hybrid Regular
10/9/2024 6:00 PM Hybrid Regular
10/30/2024 6:00 PM Hybrid Regular
11/13/2024 6:00 PM Hybrid Regular
11/20/2024 6:00 PM Hybrid Tentative Special
11/27/2024 6:00 PM Hybrid Canceled
12/11/2024 6:00 PM Hybrid Regular
12/25/2024 6:00 PM Hybrid Canceled
2024 Assignments - Council Representation (primary/backup)
January February March April May June
Cari Templeton
Keith Reckdahl
Bart Hechtman
Doria Summa
Bryna Chang
George Lu
Doria Summa
Allen Akin
Keith Reckdahl
Cari Templeton
George Lu
Bryna Chang
July August September October November December
Allen Akin
Bart Hechtman
Doria Summa
George Lu
Cari Templeton
Keith Reckdahl
Bart Hechtman
Bryna Chang
George Lu
Bart Hechtman
Doria Summa
Cari Templeton
Item 1
Attachment A: 2024
Meeting Schedule &
Assignments
Packet Pg. 7
Planning & Transportation Commission
2025 Meeting Schedule
5
5
9
0
2025 Schedule
Meeting Dates Time Location Status Planned Absences
1/8/2025 6:00 PM Hybrid Canceled
1/15/2025 6:00 PM Hybrid Special
1/29/2025 6:00 PM Hybrid Regular
2/12/2025 6:00 PM Hybrid Regular
2/26/2025 6:00 PM Hybrid Regular
3/12/2025 5:00 PM Hybrid Regular
3/26/2025 6:00 PM Hybrid Regular
4/9/2025 6:00 PM Hybrid Regular
4/30/2025 6:00 PM Hybrid Regular
5/14/2025 6:00 PM Hybrid Regular
5/28/2025 6:00 PM Hybrid Regular
6/11/2025 6:00 PM Hybrid Regular
6/25/2025 6:00 PM Hybrid Regular
7/9/2025 6:00 PM Hybrid Regular
7/30/2025 6:00 PM Hybrid Regular
8/13/2025 6:00 PM Hybrid Regular
8/27/2025 6:00 PM Hybrid Regular
9/10/2025 6:00 PM Hybrid Regular
9/24/2025 6:00 PM Hybrid Regular
10/8/2025 6:00 PM Hybrid Regular
10/29/2025 6:00 PM Hybrid Regular
11/12/2025 6:00 PM Hybrid Regular
11/26/2025 6:00 PM Hybrid Canceled
12/10/2025 6:00 PM Hybrid Regular
12/31/2025 6:00 PM Hybrid Canceled
Item 1
Attachment B: 2025
Meeting Schedule
Packet Pg. 8
Item No. 2. Page 1 of 21
1
6
9
4
Planning & Transportation Commission
Staff Report
From: Planning and Development Services Director
Lead Department: Planning and Development Services
Meeting Date: September 25, 2024
Report #: 2408-3325
TITLE
Study Session to Review Potential Amendments to the Regulations for the Affordable Housing
Incentive Program (AHIP) and Housing Incentive Program (HIP) in Title 18 (Zoning Ordinance) of
the Palo Alto Municipal Code to Implement Programs 3.3 and 3.4 of the Adopted 2023-2031
Housing Element
RECOMMENDATION
Staff recommends the Planning and Transportation Commission (PTC) conduct a study session
to review a summary of issues and recommendations, and provide feedback on approaches to
amending the Affordable Housing Incentive Program (AHIP) and Housing Incentive Program
(HIP) in Title 18 (Zoning Ordinance) of the Palo Alto Municipal Code (PAMC), with the objective
of supporting housing affordability and production, and improving financial feasibility.
EXECUTIVE SUMMARY
The 2023-2032 Housing Element, adopted by the City Council on April 15, 2024, and certified by
the California Department of Housing and Community Development (HCD) on August 20, 2024,
includes two key programs to support affordable and other multifamily housing development.
These two programs are excerpted in Attachment A and summarized below:
Housing Element Program 3.3 calls for amendments to the Affordable Housing
Incentive Program (AHIP) to streamline, incentivize, and improve project feasibility of
affordable housing projects. This includes extending the program to apply to a broader
set of sites, modifying development standards to allow for more housing units on a
given site (e.g., allowing up to 60 feet of building height for projects with affordability
levels below 60% of area median income), and reducing the number of Architectural
Review Board hearings to no more than two. This task does not include implementation
of Program 3.3C regarding State Density Bonus Law updates, which will proceed through
a separate work plan.
Housing Element Program 3.4 seeks to expand development incentives in the Housing
Incentive Program (HIP) and extend the program to multifamily residential districts (i.e.,
RM districts and portions of the Research Office and Limited Manufacturing (ROLM) and
Item 2
Staff Report
Packet Pg. 9
Item No. 2. Page 2 of 21
1
6
9
4
General Manufacturing (GM) Districts) to facilitate housing production. Program 3.4 also
calls for preparation of a feasibility study to analyze physical feasibility of current zoning
standards to achieve different housing types (e.g., townhomes, apartments) and
financial feasibility of these resulting prototypical housing types. This task does not
include implementation of Program 3.4E regarding the El Camino Real Focus Area
expansion, which will proceed through a separate work plan.
Zoning changes to implement Housing Element Program 3.3 are straightforward and well-
specified in the Housing Element. This report analyzes potential effects of changes to the AHIP
including a comparison to other programs available under State Law to confirm that an
amendment to the AHIP provides a true incentive.
Housing Element Program 3.4 is somewhat less specific. It calls for both specific zoning changes
and for more generalized changes to development standards that necessitate additional
analysis. This report presents this analysis of physical and financial feasibility of existing and
potential standards described in Housing Element Program 3.4 and concludes that:
1. Base zoning standards (exclusive of recent amendments that modify standards for
Housing Element opportunity sites) favor townhome development and are less
conducive to stacked flats (e.g., apartments, condominiums) or mixed-use development
with ground-floor retail. This is problematic since market rate townhomes have higher
rent and sales price than apartments and stacked flat condos, and are out of reach for
many households.
2. The housing types that result from current zoning standards (applicable to sites that are
not Housing Element opportunity sites) may not be financially feasible in all locations.
Collectively, the current zoning standards may result in housing types with too few units
to overcome the cost of demolition and construction.
3. To implement Housing Element Program 3.4, the City would need to consider
modifications to various physical development standards to allow more residential
units, enable the development of stacked flats and residential mixed-use development,
and improve financial feasibility. Generally, this represents an additional 1.0 to 2.0 FAR
and 10-20 feet of building height.
The purpose of the study session is to review the background, research, and options associated
with these Zoning Ordinance amendments. Based on feedback from PTC and the Architectural
Review Board (ARB), City staff and consultants will prepare an ordinance for the PTC’s
consideration later this fall.
Importantly, the information included in this report is intended to serve as a starting point
discussion for potential changes to the City’s development standards to promote greater
housing production. To some degree, changes to one development standard can impact
another. For instance, further reduction in parking requirements may facilitate a reduction in
height or, if there is greater interest in preserving daylight plane or building adjacencies to
Item 2
Staff Report
Packet Pg. 10
Item No. 2. Page 3 of 21
1
6
9
4
lower density zoning districts, more ground floor coverage or reduced setbacks may be
required. Staff anticipates making refinements to the A/HIP programs based on community and
board/commission feedback.
BACKGROUND
The City of Palo Alto Draft 6th Cycle Housing Element aims to implement State Housing Element
law, including meeting the Regional Housing Needs Allocation (RHNA) and affirmatively
furthering fair housing in Palo Alto. Housing Element Programs, 3.3 (AHIP) and 3.4 (HIP) aim to
provide incentives for affordable and multi-family housing.
Although State Housing Element law requires cities to demonstrate physical availability of sites
to meet the RHNA, it does not necessarily require demonstration of financial feasibility.
However, the State requires that the Housing Element include programs that would encourage
housing production and eliminate constraints.
To that end, the City engaged planners, architects, and economic analysts at Lexington
Planning, Urban Field Studio, and Keyser Marston Associates to analyze the physical and
financial feasibility of current and potential zoning standards. These results are highlighted in
Attachment B and C which illustrate the physical models and report the financial feasibility
findings of this analysis, respectively. Attachment D is a map that identifies the locations where
the applicability of the HIP is proposed to be extended. The Housing Element calls for an
extension of the AHIP so that it applies by-right to all Housing Element opportunity sites which
meet the eligibility criteria. The opportunity sites are also shown on the map in Attachment D.
Previous Planning & Transportation Commission Review
On June 28, 2023, the PTC discussed a work plan to implement key Housing Element programs:
Program 1.1 (Adequate Sites Inventory) and Program 3.4 (Housing Incentive Program). The
status of these programs and the PTC’s feedback are summarized below. As described above,
Program 3.3 implementation is being added to this discussion for efficiency purposes and since
it is related to Program 3.4.
Housing Element Program 1.1A & 1.1B implementation is now complete. The City
Council adopted amendments to the Zoning Ordinance on December 18, 2023, to
modify development standards for Housing Element opportunity sites.
Housing Element Program 3.4 (HIP) implementation is underway as part of tonight’s
meeting. In June 2023, the PTC discussed the need for coordination with developers;
and broader neighborhood planning beyond just housing to consider the need for parks,
open space, street trees/landscaping, and transportation infrastructure; especially in the
San Antonio corridor and GM/ROLM Focus Area.
Housing Element Program 3.3 (AHIP) implementation has been added to this discussion
since the changes are aligned with the HIP effort.
Item 2
Staff Report
Packet Pg. 11
Item No. 2. Page 4 of 21
1
6
9
4
Housing Incentive Program
The HIP was enacted in 2019 as a local alternative to the State Density Bonus law. It provides
development incentives including no residential density restrictions, increased floor area ratios,
and increased lot coverage. It requires full Architectural Review, but provides for use of the new
streamlined review process (one study session with the ARB) when a project meets objective
design standards. The HIP does not require additional below-market rate units beyond the
City’s existing inclusionary housing requirement. Currently, the only eligibility criterion is that
the HIP is only applicable in certain commercial mixed-use districts and locations:
CD-C zone (Downtown);
CC(2) zone (California Avenue);
CN or CS zoned sites on El Camino Real;
CS zoned sites on San Antonio Road between Middlefield Road and East Charleston
Road; and
North Ventura (NV) zones (final Council action pending).
With the exception of the NV zones (not yet in effect), the HIP code sections will be relocated
from Ch. 18.16.060(k) and 18.18.060(l), revised, and consolidated into the placeholder code
section in 18.14 (Housing Incentives) as a way to streamline and better highlight the incentive
opportunity.
The City has approved two development projects that utilized the HIP to create a total of 105
residential units.1 However, given recent changes in State Density Bonus Law and other
streamlining bills, changes to the HIP are warranted to make sure that the program is providing
a real incentive compared to State laws.
1 17PLN-00305, a mixed-use project with 3 units at 3585 El Camino Real was the first HIP project. The second HIP
project was 19PLN-00079, a 102-unit project at 788 San Antonio Road.
Item 2
Staff Report
Packet Pg. 12
Item No. 2. Page 5 of 21
1
6
9
4
A 102-unit residential mixed-use development was approved by the City at 788 San Antonio
Road. The project, which includes 16 below-market rate units, was awarded additional
residential density through the HIP.
Affordable Housing Incentive Program
The Affordable Housing Overlay was enacted in 2018 to promote 100% affordable housing
development. The Affordable Housing Overlay was a legislative zoning map amendment that
required ARB, PTC, and Council review and approval.
In July 2022, the City modified the Affordable Housing Overlay district into the Affordable
Housing Incentive Program (AHIP) to streamline the approval process. Currently, eligible
projects achieve increased density, taller heights, and reduced parking ratios, among other
benefits. These projects are reviewed by the ARB and approved by the Planning Director,
thereby eliminating the legislative change that require review and action by the PTC and
Council and allowing AHIP projects to be eligible for processing under Senate Bill 330. Still,
eligibility is currently limited; an AHIP project must be:
100% affordable rental housing (up to 120 percent of Area Median Income [AMI]); and
Located within ½ mile from CalTrain or ¼ mile from a bus transit corridor; and
Located in the CD, CC, CN, CS or North Ventura zoning districts.
The City has received only one development project application, utilizing the AHIP (see below).
Use of this program has been limited by the narrow eligibility criteria of just a handful of zoning
districts. Further, given recent changes in State Density Bonus Law and findings from the
analyses herein, changes to the HIP are warranted to make sure that the program is providing a
real incentive for affordable housing development compared to State law.
Item 2
Staff Report
Packet Pg. 13
Item No. 2. Page 6 of 21
1
6
9
4
Wilton Court, at 3705 El Camino Real, used the AHIP to increase residential density otherwise
allowed at the site and construct 59 units affordable to low-income households.
State Streamlining Incentives
In recent years, new State laws offer qualifying development projects streamlined review, often
with limited public hearings and/or subject to ministerial approvals. The City originally
developed the HIP and AHIP incentive programs to retain Architectural Review with the ARB in
exchange for relaxed development standards. However, for these local programs to be effective
and used, they must provide incentives for developers that exceed what is attainable under
State law. Recent and commonly used State law programs are summarized here and compared
to the HIP and AHIP in the analysis section below:
State Density Bonus Law (Gov. Code Section 65915): This law gives developers the right
to build additional dwelling units and obtain flexibility in local development
requirements, in exchange for building on-site affordable or senior housing. To support
the development of affordable and senior housing, projects can receive “waivers” and
“concessions” to modify applicable regulations. This could include standards such as
height, setbacks, parking, and ground-floor retail requirements. The handout in
Attachment E includes a more thorough description of State Density Bonus Law and
how it applies in Palo Alto.
SB 35 Streamlining for Affordable Housing (Gov. Code Section 65913.4): Effective since
2018, this law allows housing development projects that meet certain physical and
Item 2
Staff Report
Packet Pg. 14
Item No. 2. Page 7 of 21
1
6
9
4
affordability criteria to undergo expedited project review and ministerial approval. Palo
Alto is subject to SB 35 based on the City’s limited progress toward meeting the City‘s
low-income housing targets in its RHNA. To be eligible for SB 35 streamlining in Palo
Alto, a project must provide at least 50% of their residential units at a rate affordable to
low-income households. SB 35 projects are frequently combined with State Density
Bonus Law to achieve density bonuses and waivers/concessions.
SB 4 Streamlining for Higher Education & Faith-Based Institutions (Gov. Code Section
65913.16): Effective January 2024, this law offers an expedited review and ministerial
approval process for 100% affordable projects located on land that was owned by an
independent institution of higher education or religious institution on or before January
1, 2024. This law allows multi-family housing even in locations/zoning districts where
this use is not permitted and stipulates density and parking requirements that may be
more generous than the standards of the zoning district.
DISCUSSION
This discussion section includes a summary of the recent zoning changes adopted pursuant to
Housing Element Program 1.1, followed by a summary of the physical and financial feasibility
analysis detailed in Attachment B and C, respectively. Next, it distinguishes between planned
zoning changes (specific zoning changes to the AHIP and HIP called out in the Housing Element
Program 3.3 and 3.4) and potential zoning changes (generalized changes to the HIP described in
Program 3.4). While planned changes are straightforward and may not require substantial
discussion, the potential changes require input from the PTC and review of the findings
presented here.
Program 1.1 (RHNA Rezoning) in January 2024
In January 2024, revised zoning standards went into effect on Housing Element Opportunity
sites, pursuant to Housing Element Program 1.1: RHNA Rezoning. These changes included
modest increases in residential density, FAR, and lot coverage in most zoning districts that allow
multi-family housing, as well as increases in building height and reductions in parking in the GM
and ROLM districts. However, these changes did not go beyond what was needed to reduce
constraints and achieve the densities required by the RHNA. Moreover, these standards only
applied to Housing Element opportunity sites; other sites in the City still have lower density
limits. As a result, these zoning modifications may not go far enough on non-Housing Element
opportunity sites to incentivize a property owner to redevelop a site with additional housing.
Although the changes under Housing Element Program 1.1 represent an important and
successful first step to meet Housing Element law and RHNA requirements, development
standards in other parts of the City may not generate projects that are financially feasible in the
housing market. Chapter 3 of the Housing Element reveals that many of the projects recently
entitled or proposed in Palo Alto actually exceed the density allowed under the Zoning Code
(see Housing Element Table 3-2: Entitled and Proposed Developments). This is because projects
are using the HIP or State Density Bonus Law to obtain density bonuses. Modifying
Item 2
Staff Report
Packet Pg. 15
Item No. 2. Page 8 of 21
1
6
9
4
development standards, as called for in Housing Element Program 3.4, can improve the physical
and financial feasibility of development, match the housing types that developers are building
in the market, and improve predictability for community members and decision-makers about
the types of development that the City can expect.
A 129-unit affordable housing project approved at 3001-3017 El Camino Real uses State Density
Bonus Law to achieve an effective density of 113 dwelling units per acre (du/ac), substantially
higher than what is typically achievable in the CS zoning district.
Physical and Financial Feasibility Studies to Evaluate Potential Changes to the HIP
As required by Housing Element Program 3.4, City staff and consultants prepared physical and
financial feasibility studies to determine the types and densities of housing that current zoning
standards2 produce and to determine whether these housing types are likely to be financially
feasible for a developer to build.
Attachment B illustrates the physical models prepared by architects at Urban Field Studio and
planners at Lexington Planning. It reports the high-level financial feasibility findings prepared by
economic consultants, Keyser Marston Associates (KMA). Attachment C is the detailed report
2 Notably, these analyses exclude zoning changes that went into effect in January 2024 on Housing Element
opportunity sites. These recent changes improve physical and financial feasibility on opportunity sites only.
Modifications to the HIP are expected to assist developers/property owners of sites that are not listed as
opportunity sites, but will also further improve feasibility on opportunity sites.
Item 2
Staff Report
Packet Pg. 16
Item No. 2. Page 9 of 21
1
6
9
4
on KMA’s financial feasibility findings.3 Figure 1 (below) summarizes this process and the
outcome of the studies.
Figure 1: Feasibility Analysis – Process and Outcome
Figure 2 (below) illustrates an example of the physical feasibility analysis detailed in Attachment
B. Architects modeled what existing standards yield (image and column at left) and then
modified various standards to try to increase yield (image and column at right). In general, this
process aimed to keep building height increase to no more than 10-20 feet (one to two stories)
3 Financial feasibility findings are based on assumptions about costs, land values, and profits that are averages, and
represent KMA’s local research and professional opinions. These assumptions may not reflect the economic
situations and assumptions for individual sites and developers, based on their specific values and priorities.
Item 2
Staff Report
Packet Pg. 17
Item No. 2. Page 10 of 21
1
6
9
4
and retain on-site parking. However, zoning standards are interconnected; there are tradeoffs
that the City can consider when evaluating changes to standards. For example, reducing parking
can free up space at the ground-level for housing units or commercial spaces without
substantial changes to building height. If side/rear setbacks and daylight planes are priorities,
then building heights may need to be higher and front/street side setbacks lower to achieve
sufficient yields. In the example in Figure 2, the architects increased building height, reduced
the rear setback, modestly reduced the parking requirement, met the open space requirement
on top of the podium, and substantially increased the FAR. This results in a shift from four
townhome units to 15 apartment units, a change in both density and building type.
Item 2
Staff Report
Packet Pg. 18
Item No. 2. Page 11 of 21
1
6
9
4
Figure 2: Excerpt from Physical Feasibility Report (see Attachment B)
Planned HIP Zoning Changes
Program 3.4 states the following specific changes to HIP regulations that will be brought
forward to the PTC and City Council:
Item 2
Staff Report
Packet Pg. 19
Item No. 2. Page 12 of 21
1
6
9
4
1. Modify Retail Preservation Ordinance requirements:
Retain retail requirements in the GF- and R-combining districts (i.e., Downtown,
California Avenue) and nodes on El Camino Real, consistent with the South El
Camino Real Design Guidelines.
Waive the retail preservation requirement on housing opportunity sites.
Reduce the retail preservation replacement floor area requirement in other
locations (e.g. reduce by half).
Note that developers may still choose to provide a mix of uses based on market
conditions.
2. Modify HIP parking requirements, consistent with what is allowed under State Density
Bonus law:
1 space per studio and 1-bedroom units (same as PAMC standard).
1.5 spaces per 2- and 3-bedroom units (vs. 2 spaces in PAMC).
Note that developers may still choose to provide parking in excess of minimum
requirements or even if parking is not required, depending on market demand.
3. Expand applicability of the HIP to the RM districts, ROLM, and GM districts (in the
northeast portion of the City nearest the Bayshore Freeway and generally bounded by
East Charleston Road to the east and Loma Verde Avenue), to allow for this incentive in
key locations where multifamily housing is allowed and encouraged. These new
locations are shown in Attachment D.
Potential HIP Zoning Changes
Attachment B describes the range of changes that the City could make to HIP zoning regulations
to support housing production, improve financial feasibility, and increase predictability. The
discussion below summarizes options that the PTC could consider to modify development
standards and then compares the relative benefits and drawbacks of the HIP vs. State Density
Bonus Law.
City staff and consultants invite the PTC to consider modifying development standards in the
HIP, including: (1) increasing FAR, lot coverage, and building height; and (2) reducing daylight
plane, setback, and open space requirements. Collectively, these standards are currently
supporting livable spaces and respecting adjacent uses, but may also limit development to
townhomes and prevent sufficient unit yields to support financially feasible projects. While
Housing Element Program 3.4D calls for these modifications, it does not identify precise
changes. Staff is seeking the PTC’s feedback on the potential standards described in the report
in Attachment B. Table 1 summarizes the potential height and density changes to the HIP, also
illustrated in Attachment B. It distinguishes between sites that are designated or not designated
as Housing Element opportunity sites. These potential standards are at the higher end of the
residential density and residential FAR necessary to support development.
Item 2
Staff Report
Packet Pg. 20
Item No. 2. Page 13 of 21
1
6
9
4
To facilitate administration by City staff and decision-makers, standards will likely be simplified
to allow an additional 2.0 FAR and 1 story/10 feet, etc. in specific zones, as shown in the last
column of Table 1.
No changes are proposed to the HIP standards for the San Antonio Road (CS zone) or the CD-C
(Downtown) zoning districts because both of these areas are, or will, soon initiate a
comprehensive community engagement effort to identify new development standards for
housing development, among other land uses. Staff seeks PTC endorsement for this approach
or feedback if these two districts should be incorporated into this effort.
Table 1: Comparison of Existing vs. Potential HIP Maximum Building Height and Residential
FAR/Density Standards, by Housing Element Opportunity Site Status
Housing Incentive Program
(Residential FAR and Building Height Standards – NOTE: this is
in addition to allowed commercial floor area)
Zoning
District
Base Standards (Residential FAR
and Building Height)
Existing (All
Sites)Potential Standards
Potential
Change (from
Base Zoning)
CD-C
2.0 FAR (HE Opp Site)
1.0 FAR (Non-Opp Site)
3.0 FAR w/ TDR
50-foot height 3.0 Total FAR
50-foot height
None proposed due to
Downtown Housing Area
Plan study N/A
CC(2)
1.5 FAR (HE Opp Site)
0.6 FAR (Non-Opp Site)
37-foot height
2.0 FAR
50-foot height
3.5 FAR (HE Opp Site)
2.6 FAR (Non-Opp Site)
60-foot height
+ 2.0 FAR
+ 23 feet
CS (El
Camino)
1.25 FAR (HE Opp Site)
0.6 FAR (Non-Opp Site)
50-foot height
1.5 FAR
50-foot height
3.5 FAR (HE Opp Site)
2.85 FAR (Non-Opp Site)
60-foot height
+ 2.25 FAR
+ 10 feet
CS
(San
Antonio)
1.25 FAR/30-40 du/ac (HE Opp
Site)
0.6 FAR/30 du/ac (Non-Opp Site)
50-foot height
2.0 FAR
50-foot height
None proposed due to San
Antonio Corridor
Coordinated Area Plan N/A
CN (El
Camino)
1.25 FAR (HE Opp Site)
0.5 FAR (Non-Opp Site)
40-foot height
1.5 FAR
50-foot height
3.25 FAR (HE Opp Site)
2.5 FAR (Non-Opp Site)
50-foot height
+ 2.0 FAR
+ 10 feet
ROLM
2.5 FAR/60 ft (Focus Area)
1.5 FAR/45 ft (HE Opp Site)
0.6 FAR/35 ft (Non-Opp Site)
N/A
3.5 FAR/60 ft (Focus Area)
2.5 FAR/45 ft (HE Opp Site)
1.6 FAR/35 ft (Non-Opp Site)
+ 1.0 FAR
No height
change
RM-40
40-50 du/ac (HE Opp Site)
40 du/ac (Non-Opp Site)
1.0 FAR (All Sites)
40-foot height
N/A No density limit
3.0 FAR
50-foot height
No density
limit
+ 2.0 FAR
+ 10 feet
RM-30
30-50 du/ac (HE Opp Site)
30 du/ac (Non-Opp Site)
0.6 FAR (All Sites)
35-foot height
N/A No density limit
2.5 FAR
40-foot height
No density
limit
+ 1.4 FAR
+ 5 feet
Item 2
Staff Report
Packet Pg. 21
Item No. 2. Page 14 of 21
1
6
9
4
RM-20
20-50 du/ac (HE Opp Site)
20 du/ac (Non-Opp Site)
0.5 FAR (All Sites)
30-foot height
N/A No density limit
2.0 FAR
40-foot height
No density
limit
+ 1.5 FAR
+ 10 feet
The HIP can still reflect transition areas, such as areas where these higher density zones abut R-
1 zones, by continuing to enforce daylight plane and height transition standards. However, to
accommodate taller heights, daylight planes would need to be adjusted to allow daylight planes
to start higher (e.g., raising from 10 feet above grade to 20 feet above grade).
PAMC Chapter 18.24 (Objective Standards) provides a model for how to create transitions
between lower-height buildings and taller new buildings by requiring a daylight plane that starts
at a taller initial height (in this example, 25 feet above grade).
Figure 3: Height Transitions and Daylight Planes
Table 2 explores the tradeoffs between the HIP and State Density Bonus Law. The HIP provides
greater predictability for what community members can expect from housing projects. By
comparison, State Density Bonus law offers more flexibility in terms of modifying development
standards and other concessions, and therefore less predictability. However, the HIP allows
developers of rental housing to pay the affordable housing fee in-lieu of on-site below market
rate housing; this is generally preferred by market rate developers and therefore a strong
incentive. For ownership housing, developers are required to include below-market rate units
on site. As a result, the City is likely to see ownership projects continue to utilize State Density
Bonus Law.
More flexibility in development standards is required to encourage use of the HIP over State
Density Bonus law. With implementation of Housing Element Program 3.4, there would be no
Item 2
Staff Report
Packet Pg. 22
Item No. 2. Page 15 of 21
1
6
9
4
difference in review process since HIP projects would be eligible for Streamlined Review (i.e.,
one study session with the ARB). This will remove a key aspect of the original purpose of the
HIP, which was to retain Architectural Review, though objective standards would continue to
provide more certainty. There is little room to further streamline the HIP process, without
allowing for a ministerial review process (i.e., review for compliance only, not subject to CEQA).
Table 2: Comparison Between Modified HIP and State Density Bonus Law
Palo Alto Housing Incentive
Program
State Density Bonus Law
Benefits
+ Inclusionary housing fee in-lieu of
on-site affordable housing (rental
housing only)
+ Higher density
+ More predictability (for City/
community members)
+ Unlimited waivers from standards
that physically limit housing units
+ Specified number of concessions for
cost reductions
Drawbacks - Limitations on development
standards
- On-site affordable housing required
As noted above, the payment of in-lieu fees is a key difference and potential advantage of the
HIP compared to projects proposed under State Density Bonus Law. Currently, the City requires
that ownership housing projects set aside at least 15% of units for below-market rate housing
at moderate income levels. Rental projects are permitted to pay a fee in lieu of this
requirement. The City then uses these funds to partner with affordable housing providers to
build 100% affordable projects. During the 5th Housing Element cycle, the City committed
approximately $40 million, primarily from in-lieu and impact fees, to support affordable housing
projects; roughly half of these impact fees were from residential versus commercial projects.
Specific projects funded for lower income and special needs populations include the following:
525 E. Charleston Avenue (50 units of Low- and Very Low-Income housing for persons
with developmental disabilities);
231 Grant Avenue (110-unit affordable teacher housing);
Wilton Court Apartments (58 units of Low- and Very Low-Income housing and serving
persons with disabilities); and
Preservation of Buena Vista Mobile Home Park (105 unit/spaces).4
4 2023-2031 City of Palo Alto Housing Element. Certified August 20, 2024. p. 3-78 – 3-79.
Item 2
Staff Report
Packet Pg. 23
Item No. 2. Page 16 of 21
1
6
9
4
Table 3 illustrates some of the key benefits and drawbacks to each method of implementation.
This analysis suggests that both methods are valid and helpful in supporting a range of
affordable housing in various locations, income levels, and contexts.
Table 3: Benefits and Drawbacks of On-Site Affordable Housing vs. Collecting Funds In-Lieu
On-Site Affordable Housing Affordable Housing Funds In-Lieu
Benefits
+ Creates housing projects at
broader range of income levels
+ Incremental economic equity
and diversity in smaller
increments, within a specific
project or block
+ Creates affordable units more
quickly
+ Accommodate very-low and
extremely-low income households, and
supportive housing for special needs
populations (e.g., formerly homeless,
people with disabilities)
+ Provides on-site property managers
and supportive services (e.g., job, food
and health care assistance)
+ Can be leveraged on a 4:1 or 5:1 basis
to access state, federal, and bond funds
+ Can produce 2-4x more affordable
units in the long-term
Drawbacks
- Only accommodates moderate
income households, not very-low
and extremely-low income
households (for-sale projects)
- More time needed to generate in-lieu
fees and coordinate with affordable
housing providers and other
stakeholders
Planned AHIP Zoning Changes
The Housing Element is specific about proposed changes to the AHIP regulations. Table 4
outlines these planned changes and compares them to State Density Bonus law and SB 35
streamlining. Key advantages and disadvantages are analyzed below:
SB 35: For a project that is proposed with 100% affordable units, the key advantages of
the SB 35 process are:
o Expedited timelines for review and approval: the required timeline for review
and approval is 90 to 180 days following compliance review.
o Ministerial action: because SB 35 projects are approved ministerially, they are
not subject to CEQA.
However, SB 35 does have specific eligibility requirements. For example, clean-up sites
on the Cortese list (e.g., former gas stations sites) would not be eligible.
State Density Bonus Law: For 100% affordable projects, when combined with SB 35, a
developer can obtain both process streamlining and more flexible standards. Key
advantages of State Density Bonus Law for 100% affordable projects are as follows:
o No residential density limit, with limited waivers.
Item 2
Staff Report
Packet Pg. 24
Item No. 2. Page 17 of 21
1
6
9
4
o Alternatively, standard density bonuses, with waivers from development
standards that physically preclude housing units (e.g., setbacks, building height).
o Concessions from certain fees and regulations that result in actual cost savings
(e.g., ground-floor retail requirements).
AHIP: The AHIP offers more predictability about what to expect in a housing project,
since compliance with objective standards is required. But, from a developer
perspective, the key advantage of AHIP is for projects that do not qualify under these
State law programs, including:
o Sites that are not eligible for SB 35 streamlining; for example, due to
environmental site factors (e.g., 100% BMR project at 3001 El Camino Real which
was located on a site with potential hazardous materials could have used this
program).
o “Missing middle” income projects that are proposed at moderate income levels
up to 120% which do not qualify for SB 35 nor for the highest density bonuses
afforded by State Density Bonus Law.
Item 2
Staff Report
Packet Pg. 25
Item No. 2. Page 18 of 21
Table 4: Existing vs. Planned AHIP Regulations Compared to State Law
Standard Existing Regulations
Planned Modifications (as
stipulated in Program 3.3)
State Density Bonus Law SB 35
Applicability Sites zoned CD, CN, CS, and
CC, but excluding shopping
centers
Sites within ½-mile of a
major transit stop or ¼-mile
of a high-quality transit
corridor (i.e., Caltrain
stations, intersecting bus
lines with headways <15
minutes)
Add all Housing Element
opportunity sites, including
those owned by Faith-Based
Institutions in the R-1 Zone
Any site with Zoning or
General Plan compliance
Eligibility based on
specific environmental
factors and physical
conditions and Zoning
or General Plan
compliance
Affordability
Eligibility
100% affordable rental
housing projects at or below
120% of the area median
income
No specific changes
identified, except for height
bonus related to deeper
affordability
Minimum 5% affordability
at or below 50% of AMI or
10% at 80% of AMI to
qualify for minimum 20%
bonus
Minimum 50% on-site
affordability in Palo
Alto currently, at or
below 80% of AMI
Review/
Approval
Process
Architectural Review (up to
three meetings with the ARB)
Projects that meet objective
standards pursuant to Ch.
18.24, allow Streamlined
Review Process (i.e., one
study session with the ARB)
Per local requirements Ministerial: no
hearings required
(though permitted if
based on objective
standards and
completed within
expedited timelines)
Environmental
Review
Subject to CEQA Subject to CEQA, though
streamlining may be
available for Housing
Element opportunity sites
Subject to CEQA No CEQA since
ministerial action.
Item 2
Staff Report
Packet Pg. 26
Item No. 2. Page 19 of 21
Standard Existing Regulations
Planned Modifications (as
stipulated in Program 3.3)
State Density Bonus Law SB 35
Maximum
Residential
Density
None in commercial mixed-
use zones.
Reduced density provision
for R-1 Zoned Faith Based
Sites
100% affordable projects
(at least 80% at 80% of AMI
and up to 20% at 120% of
AMI): no density limit
Per local requirements
Maximum
Floor Area
Ratio
Residential: 2.0
Non-Residential: 0.4
Total: 2.4
Allow up to 2.4 Residential
FAR (without requiring
commercial uses, except in -
GF and -R combining
districts). Reduced density
provision for R-1 Zoned Faith
Based Sites.
100% affordable projects
(at least 80% at 80% of AMI
and up to 20% at 120% of
AMI): no density limit for
projects that only regulate
FAR and not residential
density
Per local requirements
Maximum
Building
Height
50 feet Allow up to 60 feet for
projects at or below 60% of
Area Median Income, with
reduced density/height
provision for R-1 Zoned Faith
Based Sites.
100% affordable projects
(at least 80% at 80% of AMI
and up to 20% at 120% of
AMI): up to 3 additional
stories or 33 feet (above
base height limit)
Per local requirements
Minimum
Parking Ratio
0.75 spaces/unit 100% affordable within ½-
mile of transit: None
Otherwise:
1 sp. per studio, 1-bed
1.5 sp. per 2-, 3-bed
2.5 sp. per 4+bed
None if located within
½ mile of transit;
otherwise maximum 1
space/unit
Other
Development
Standards
Max. Lot Coverage: 100%
Min. Usable Open Space: 25-
50 sq. ft./unit
Per Program 3.3B: “The City
will modify AHIP
development and parking
standards commensurate
with FAR increases”
100% affordable projects
within ½-mile of transit: five
concessions/incentives
Per local requirements
Item 2
Staff Report
Packet Pg. 27
PTC Discussion Topics
City staff asks the PTC to consider whether it supports the following changes as generally
directed by Program 3.4:
Modifications to one or more of the following development standards in the HIP to promote
housing production:
1. Increase building heights by 5 to 23 feet over existing standards, depending on the
district.
2. Increase FAR by 1.4 to 2.25 over existing standards, depending on the district, to
support building height and density increases.
3. Eliminate maximum residential density (i.e., dwelling units/acre) as a standard.
4. Reduce setbacks, especially street-facing setbacks.
5. Increase maximum site/lot coverage.
6. Modify daylight plane limitations, to start step-backs higher up in the building.
7. Allow more flexibility in how open space is provided (e.g., on podiums, rooftops,
balconies).
8. Allow the San Antonio Corridor Coordinated Area Plan and Downtown Housing Plan
Study process to advise on modified HIP standards for the CS and CD(C) zones,
respectively.
9. Decrease minimum parking requirements, beyond State Density Bonus Law
standards.
STAKEHOLDER ENGAGEMENT
Preparation of the Housing Element included a range of community outreach methods,
including surveys, Working Group meetings, community workshops, and public hearings.
Hundreds of community members have participated in the Housing Element update over the
course of the project. City staff and consultants are working with developers and architects
familiar with the City’s regulations to test potential standards. Community members have an
opportunity to provide feedback on the draft standards at PTC, ARB, and City Council study
sessions and public hearings.
ENVIRONMENTAL REVIEW
On April 15, 2024, the City Council adopted Resolution No. 10155, approving an Addendum to
the Comprehensive Plan Environmental Impact Report (EIR). The addendum analyzed potential
environmental impacts of the 6th Cycle Draft Housing Element. This includes implementation of
Housing Element Programs 3.3 and 3.4 and associated increase in housing production including
and beyond what was projected by the RHNA and Housing Element sites inventory.
ATTACHMENTS
Attachment A: Excerpt from 2023-2031 Adopted Housing Element Program - 3.3: Affordable
Housing Incentive Program (AHIP) 3.4: Housing Incentive Program (HIP)
Item 2
Staff Report
Packet Pg. 28
Attachment B: Physical Feasibility Analysis Report (Executive Summary with link to full report5)
Attachment C: Financial Feasibility of Multifamily Housing Typologies
Attachment D: Existing vs. Proposed HIP Eligible Locations Map
Attachment E: State Density Bonus Law Handout
AUTHOR/TITLE:
Jean Eisberg, Consultant
5 Full report: https://www.cityofpaloalto.org/files/assets/public/v/1/planning-amp-development-services/long-
range-planning/kma-housing-incentive-program-report_complete.pdf
Item 2
Staff Report
Packet Pg. 29
5-15
Time Frame: Complete and implement studies by September 2024. Complete
additional study by 2025. Amend fee schedule by September 2026.
Primary Associated
Goals and Policies
Goals: 3, 4
Policies: 3.1, 4.1
PROGRAM 3.2: MONITOR CONSTRAINTS TO HOUSING
The Constraints chapter of the Housing Element identifies several conditions and practices that act to
constrain housing development. By addressing these conditions and practices, the City can streamline
development processes, and promote future residential development. The City will continue to monitor
its policies, standards, and regulations to ensure the City’s regulatory framework facilitates residential
and balanced mixed-use development in the community.
Responsible Agency: Planning and Development Services
Funding Sources(s): General Fund
Implementing
Objectives:
A. Monitor new local policy initiatives for effectiveness in combatting
identified constraints to housing development.
B. When new land use regulations, impact fees or procedural changes are
being considered by the Planning and Transportation Commission and City
Council, the City shall prepare an analysis in the accompanying staff report
detailing how the regulation may impact housing production, if at all, and
recommended solutions to address those impacts.
C. Monitor application of the Municipal Code standards for constraints to
housing projects and recommend changes annually, as appropriate, to
enhance the feasibility of affordable housing.
Time Frame: Complete review and implementation of required edits once
during the planning period, by January 2027.
Primary Associated
Goals and Policies:
Goals: 2, 4
Policies: 2.1, 2.3, 4.2
PROGRAM 3.3: AFFORDABLE HOUSING DEVELOPMENT INCENTIVES
The Planning and Development Services Department, in its review of development applications, market
conditions and through conversations with non-profit housing providers, has identified certain changes in
development standards that will encourage the development of low- and moderate-income housing. The
City has already adopted an affordable housing incentive program (AHIP) that includes flexible
development standards, streamlined application review processes, direct financial assistance and other
incentives to encourage affordable housing. These initiatives will be extended through this Program to
reduce constraints and expand the opportunity for below-market rate housing.
Responsible Agency: Planning and Development Services
Funding Sources(s): General Fund
Implementing Objectives: A. Amend the municipal code to extend the affordable housing incentive
program to apply to all housing opportunity sites identified in the
Housing Element and zoned for commercial, industrial or multi-family
Item 2
Att A_Program 3.3 & 3.4
Packet Pg. 30
5-16
residential use. Update AHIP regulations for religious institution sites
located in the R1 district with a reduced density provision.
B. Amend the affordable housing overlay (incentive program) regulations
to allow housing projects to achieve a residential floor area ratio of
2.4:1.0 without requiring commercial floor area (except where required
on University and California Avenues). The City will modify AHIP
development and parking standards commensurate with FAR increases,
and, for housing projects income restricted to 60 percent of the area
median income level or below, allow up to sixty (60) feet in height on all
opportunity sites.
C. Amend Zoning Code to incorporate all recent changes to State density
bonus law and develop summary materials to promote the use of
density bonuses.
Time Frame: Complete zoning changes by December 31, 2024
Quantified Objective: Amend the zoning code and comprehensive plan as
necessary to extend the provision of affordable housing incentive program
to sites in the housing inventory and codify additional incentives described
herein.
D. Amend the PAMC to streamline all 100 percent affordable housing
development projects. Implement a procedure that prioritizes
affordable housing projects for staff resources and, if applicable,
hearing dates, above other projects, regardless of submission date.
Time Frame: Complete by December 2024.
Quantified Objective: The timeframes associated with permit processing
can be viewed as a constraint to affordable development. The City aims to
complete the processing of planning entitlements for affordable housing
projects exempt from environmental review within 90 days from application
submittal.
Primary Associated Goals
and Policies:
Goal: 2, 3, 4
Policies: 2.1, 2.2, 2.3, 3.2, 4.2
PROGRAM 3.4: HOUSING INCENTIVE PROGRAM (HIP)
The HIP was enacted in 2019 as an alternative to the State Density Bonus law and provides development
incentives including no housing density restrictions, increased floor area ratios and increased lot coverage.
This program seeks to expand the suite of development incentives and extends the program to additional
zoning districts that are not identified in the Site Inventory.
Responsible Agency: Planning and Development Services
Funding Sources(s): General Fund
Implementing Objectives: A. HIP qualifying projects that also comply with City approved objective
standards shall be administratively reviewed with one courtesy meeting
before the Architectural Review Board.
Time Frame: Revise review process instructions by December 2024.
Item 2
Att A_Program 3.3 & 3.4
Packet Pg. 31
5-17
Quantified Objective: Monitor projects for compliance with desired review
schedule, track application processing timelines and number of applications
appealed to Council; use data to inform future modifications to the HIP
program.
B. Amend the local Housing Incentive Program to include specific
expanded development standards, as an alternative to state density
bonus provisions. Reduce barriers by removing Planning Director
discretion to define applicable standards in each instance.
C. Allow for sites subject to the City’s retail preservation ordinance –
except in the ground floor (GF) and retail (R) combining districts and
strategic locations generally depicted in the draft South El Camino Real
Design Guidelines – to have a reduction in the amount of retail
replacement floor area needed for redevelopment and waive the retail
preservation requirement for identified housing opportunity sites.
D. Extend the local Housing Incentive Program to the multi-family
residential districts (RM-20, RM-30, and R-40).as well as the ROLM and
GM district focus area The Housing Incentive Program development
standards shall be amended to increase height and floor area allowances
for housing projects; reduce parking requirements to match or improve
upon state density bonus, and adjustment to other development
standards to enable greater housing production.
Time Frame: Complete Municipal Code amendments by December 31, 2024.
Quantified Objective: Amend the municipal code and comprehensive plan
to codify implementing objective with the goal of encouraging the
development of approximately 550 units over the planning period.
E. Expand the geographic boundaries of the El Camino Real Focus Area
(adopted in 2023) to incentivize housing production at appropriate
locations. Increase building height and floor area ratios and apply other
objective standards, such as transitional height restrictions, to address
single family zoning district adjacencies. The proposed standards will be
an alternative to the state density bonus.
Time Frame: Complete municipal code amendments by June 30, 2025.
Quantified Objective: Amend municipal code with the goal of encouraging
development of approximately 500 units over the planning period.
Primary Associated Goals
and Policies:
Goal: 2, 3, 4
Policies: 2.2, 3.1, 3.2, 4.2, 4.4
PROGRAM 3.5: ACCESSORY DWELLING UNIT (ADU) FACILITATION
This program aims to annually monitor provisions made to ADU legislation and amend the City’s Zoning
Ordinance as necessary to ensure compliance with State law. Furthermore, the City is committed to
encouraging a greater range of housing types, reducing barriers to alternative types of housing such as
ADUs, and promoting income integration across the City.
In recent years, multiple bills have added requirements for local governments related to ADU ordinances.
The 2016 and 2017 updates to State law included changes pertaining to the allowed size of ADUs,
Item 2
Att A_Program 3.3 & 3.4
Packet Pg. 32
Housing Incentive Program (HIP) Amendments to Implement the
6th Cycle Housing Element
Physical Feasibility Analysis Report
Revision Date: May 3, 2024July 10, 2024
Item 2
Att B_UFS Physical
Feasibility Site Tests
Packet Pg. 33
Physical Feasibility Analysis Report 1
Overview
This report helps implement Program 3.4 of the Housing Element, which requires that the City amend the Housing Incentive Program based on findings of a feasibility analysis. This report
analyzes the physical feasibility of current zoning standards to achieve different housing types (e.g., townhomes, apartments).
Architects prepared prototypical site and
unit plans based on the City’s development standards, including building height, density, setbacks, open space, and parking requirements. Then, the architects adjusted various zoning levers, modifying zoning
standards to increase unit yield and further support housing production and affordability.
This analysis is accompanied by Keyser
Marston Associates’ (KMA) financial feasibility
analysis to determine whether the prototypes resulting from existing and modified zoning standards are financially feasible.
Purpose & Findings
50’-0”
14’-0”
25’-0”
36’-0”
40’-0”
50’-0”
40’-0”Height Limit Buffer
Modified CD-C ZoningExisting CD-C Zoning
60’-0” 60’-0”
Item 2
Att B_UFS Physical
Feasibility Site Tests
Packet Pg. 34
City of Palo Alto Housing Incentive Program (HIP) Amendments to Implement the 6th Cycle Housing Element2
Mixed-Use Zones RM Zones
Zoning Designation CD-C CN CC(2) RM-20 RM-30 RM40 ROLM (RM-30)
Site 635 High
Street
3700 El Camino
Real
310 California
Avenue
680 University
Avenue
355 College
Avenue
Typical Interior
Lot
1035 E Meadow
Circle
Lot Size 50’x102’150’x106’90’x125’100’x100’50’x132’50’x100’300’x145’
Square feet 5,125 15,761 11,250 10,000 6,626 5,000 43,560
Existing
Retail
No Yes Yes No No No No
Test Sites
RM-20
CD-C
RM-30
ROLM
CN
RM-40
CC(2)
Item 2
Att B_UFS Physical
Feasibility Site Tests
Packet Pg. 35
Physical Feasibility Analysis Report 3
Key Findings
Existing zoning standards generally support townhome development with surface or tuck-under parking. This is largely due to low lot coverage allowances and densities/FARs,
deep setbacks, and relatively high parking and landscaping requirements. Townhomes are a fine prototype, but limited in their ability to produce affordable and market rate housing. Existing standards generally do not support
apartments and condominiums in “stacked flats” configuration or mixed-use development with ground-floor retail.
To achieve these higher densities,
opportunities for more affordable housing, and
more financially feasible development, the modified zoning standards explore adjustments to several zoning levers:
• Reducing setbacks, especially on the street
side• Increasing lot coverage, FAR, and density• Increasing height limits and adjusting daylight plane requirements
• Reducing landscaping coverage and
allowing flexibility in the placement of common open space• Reducing parking requirements, consistent with State law allowances
• Reducing ground-floor retail requirements
outside of neighborhood commercial centers
Item 2
Att B_UFS Physical
Feasibility Site Tests
Packet Pg. 36
City of Palo Alto Housing Incentive Program (HIP) Amendments to Implement the 6th Cycle Housing Element4
Retail Preservation
Requirements Revisions
• Revise use requirements for retail• Do not require one-for-one replacement: allow minimum FAR standard for retail
• Revise Retail preservation applicability
• Only require retail at key nodes. Allow 100% residential in between nodes on commercial corridors, and Housing Element opportunity sites
• Clarify that Retail Preservation replacement
is allowed on two floors
Objectives
• Support affordable and market rate
housing production goals, as specified in the Housing Element• Allow for apartment housing formats• Accommodate stacked flats and mixed-use
development
• Enable financial feasibility • Retain Palo Alto design values
50’-0”
14’-0”
25’-0”
36’-0”
40’-0”60’-0”Redefine maximum height
of buildings to measure to
top of structure, rather
than top of parapet to
allow a more reasonable
fit within the height limit.
Decrease parking
requirements, consistent
with State law
allowances: The space
taken up by parking
compared to housing can
be close to 1:1.
✓X
2-Bedroom Unit
828 sf
2 parking spaces required 558 sf+ guest parking (1 per project, plus 10% of total number of units)
= 837 sf12’-0’ Circulation(aisle width)
19’ x 9’
Parking Space
Guest Parking
23’ x 36’
Item 2
Att B_UFS Physical
Feasibility Site Tests
Packet Pg. 37
Physical Feasibility Analysis Report 5
Ground Floor
Upper Level
Development Standard
Revisions
• Increase or eliminate maximum residential densities, which do not directly affect building massing
• Increase FAR and building height
• Revise the Daylight Plane to allow for at least two stories of development• Revise height buffer in CD-C district: 150 feet is too far from “adjacent” residential to
create a meaningful transition
• Revise Height Limit Buffer to apply only when the entire site is within the buffer• Revise Height Limit Buffer to apply to area within 10 feet of a visible property line
(thus defining a setback)
Lot Standard Revisions
• Decrease landscape/open space
coverage. The Ground Floor is a contested
space. The more Landscape/Open Space is required, the smaller the podium. It’s a big trade-off.• Allow landscape/open space to be
counted above the ground floor on small
sites (e.g, at the podium level)• Reduce setbacks, especially on the street side which tend to be deep even though this does not affect neighbors.
• Allow zero setbacks or mixed-use citywide
or on commercial streets like California Avenue, University Avenue, and El Camino Real• Reduce rear setback near roads. Count
the alleyways/lanes/service roads in lieu of
rear setback
Revise the daylight plane
to allow at least two
stories at the edges of
sites.
Allow the landscape/open
space requirement to be
met on upper levels to
free up contested space
at the ground level.
Ground Floor
Item 2
Att B_UFS Physical
Feasibility Site Tests
Packet Pg. 38
City of Palo Alto Housing Incentive Program (HIP) Amendments to Implement the 6th Cycle Housing Element6
CD-C District
Alle
y
50’
-
0
”
102’-6
”
Alle
y
Prim
a
r
y
S
t
r
e
e
t
Modified CD-C Zoning
15 Apartments
Existing CD-C Zoning
4 Townhomes
The Height Limit Buffer and requirement for open space at the ground floor limit the amount of housing potential on the site.
Housing capacity almost quadruples when allowing 10 more feet of height, eliminating the height buffer, and open space requirements to met on top of podiums.
Prim
a
r
y
S
t
r
e
e
t
Item 2
Att B_UFS Physical
Feasibility Site Tests
Packet Pg. 39
Physical Feasibility Analysis Report 7
Existing CD-C Zoning Modified CD-C Zoning
Setback: Front N/A N/A
Setback: Interior Side N/A N/A
Setback: Rear 10 feet for residential portion 5 feet for residential portion
Setback: Street Side Yard N/A N/A
Build-to-Lines: Frontage N/A N/A
Build-to-Lines: Side Street N/A N/A
Height Limit Buffer Yes (40 feet)No
Height Limit 50 feet 60 feet
Daylight Plane N/A N/A
Maximum Site Coverage N/A N/A
Minimum Landscape/Open Space Coverage 20% on ground 20% on ground and/or upper level
Parking: Studio/1BR 1 1
Parking: 2+ BR 2 1.5
Maximum FAR Overall 2.0 4.0
Maximum Residential FAR 1.0 4.0
Maximum Commercial FAR 1.0 0.0
Parking Required 2 per unit8 spaces 1.5 per unit17.5 spaces
Total Number of Units 4 units 15 units
Average Unit Size 1,575 sf 1,003 sf
Density 34 du/ac 125 du/ac
FAR Overall 1.23 FAR 4.16 FAR
Parking Provided (spaces)8 spaces 18 spaces
Parking Type Covered, tandem Podium, tandem
50’-0”
14’-0”
25’-0”
36’-0”
40’-0”
60’-0”
50’-0”
40’-0”Height Limit Buffer
Modified CD-C ZoningExisting CD-C Zoning
PR
O
T
O
T
Y
P
E
R
E
S
U
L
T
S
STA
N
D
A
R
D
S
Modified standards indicated in red.
60’-0” Height Limit
Item 2
Att B_UFS Physical
Feasibility Site Tests
Packet Pg. 40
City of Palo Alto Housing Incentive Program (HIP) Amendments to Implement the 6th Cycle Housing Element8
Retail
l/wk
l/wk
l/wk
l/wktrash
Retail
Open
S
p
a
c
e
Ramp
150’-0
”
106
’
CN District
Existing CN Zoning
12 Apartments
A height limit buffer, maximum height limit, and daylight plane apply to this site. With a 35% minimum landscape/open space coverage, there is not much left space left for mixed use development. Underground parking is therefore required.
Modified CN Zoning
35 Apartments
More housing is possible by raising the height limit, allowing modest changes to the setbacks, and allowing the landscape/open space to be located on upper levels. Parking is accommodated at grade using mechanical lifts.
Prima
r
y
S
t
r
e
e
t
Prima
r
y
S
t
r
e
e
t
Alley
Alley
Side
S
t
r
e
e
t
Ramp
Side
S
t
r
e
e
t
Item 2
Att B_UFS Physical
Feasibility Site Tests
Packet Pg. 41
Physical Feasibility Analysis Report 9
Existing CN Zoning Modified CN Zoning
Setback: Front 0-10’ for sidewalks 0-10’ for sidewalks
Setback: Interior Side 10 feet 5 feet
Setback: Rear 10’ for residential portion 5’ for residential portion
Setback: Street Side Yard 5 feet 5 feet
Build-to-Lines: Frontage 50%50%
Build-to-Lines: Side Street 33%33%
Height Limit Buffer Yes (35 feet)Daylight plane in-lieu of buffer
Height 40 feet 50 feet
Daylight Plane 16 feet height, 60 degrees 16 feet height, 60 degrees
Maximum Site Coverage 50%100%
Minimum Landscape/Open Space Coverage 35% on ground 35% on ground and/or upper level
Parking: Studio/1BR 1 1
Parking: 2+ BR 2 1.5
Maximum FAR Overall 1.5 FAR 3.5 FAR
Maximum Residential FAR 1.5 FAR 3.5 FAR
Maximum Commercial FAR 0.4 FAR 0.4 FAR
Minimum Mixed-Use Ground Floor Commercial FAR 0.15 FAR 0 FAR
Parking Required 21 spaces 42 spaces
Total Number of Units 12 units 35 units
Average Unit Size 735 sf 742 sf
Retail Preservation 2900 sf 0 sf
Density 33 du/ac 97 du/ac
FAR Overall 1.04 FAR 2.19 FAR
Parking Provided 21 total spaces 46 spaces
Parking Type Underground, tandem Podium, mechanical
16’-0”6020’-0”
30’-0”
50’-0”
40’-0”
Modified CN Zoning
16’-0”60
35’-0”
20’-0”
30’-0”
35’-0”
Existing CN Zoning
35’-0” Height
Limit Buffer 16’-0”16’-0”60°
40’ Height Limit
Day
l
i
g
h
t
P
l
a
n
e
Day
l
i
g
h
t
P
l
a
n
e
PR
O
T
O
T
Y
P
E
R
E
S
U
L
T
S
STA
N
D
A
R
D
S
Modified standards indicated in red.
50’-0” Height Limit
Item 2
Att B_UFS Physical
Feasibility Site Tests
Packet Pg. 42
City of Palo Alto Housing Incentive Program (HIP) Amendments to Implement the 6th Cycle Housing Element10
CC(2) District
Existing CC(2) Zoning
3 Townhomes
Building height, setbacks, lot coverage, parking requirements, and FAR maximums apply to this site. Two levels of underground parking is required to meet minimum parking standards, which is costly. Existing residential FAR limits and setbacks limit the housing to 3-stories and to only 3 units.
Modified CC(2) Zoning
34 Apartments
More housing is possible by raising the height limit, eliminating setbacks, allowing the landscape/open space to be located on upper levels and increasing the FAR. Retail parking is not provided onsite but in district commercial parking structures. Residential parking is provided onsite in mechanical lifts.
Prim
a
r
y
S
t
r
e
e
t
Prim
a
r
y
S
t
r
e
e
t
Side S
t
r
e
e
t
Side S
t
r
e
e
t
Alle
y
125’-0
”
90’
-
0
”
Alle
y
Ramp
Ret
a
i
l
Open
S
p
a
c
e
Ret
a
i
l
Open
S
p
a
c
e
Item 2
Att B_UFS Physical
Feasibility Site Tests
Packet Pg. 43
Physical Feasibility Analysis Report 11
Existing CC(2) Zoning Modified CC(2) Zoning
Setback: Front 0-10’ for sidewalks 0 feet
Setback: Interior Side 10 feet 0 feet
Setback: Rear 10’ for residential portion 0 feet
Setback: Street Side Yard 5 feet 0 feet
Build-to-Lines: Frontage 50%50%
Build-to-Lines: Side Street 33%33%
Height Limit Buffer Not Applicable Not Applicable
Height 37 feet 60 feet
Daylight Plane Not Applicable Not Applicable
Maximum Site Coverage 100%100%
Minimum Landscape/Open Space
Coverage
20% on ground
(23% shown)
20% (on any level)
Parking: Studio/1BR 1 0.5
Parking: 2+ BR 2 1.0
Parking: Retail 1 per 250 sfFirst 1,500sf exempt 0offsite with district parking
Maximum FAR Overall 2.0 FAR 3.5 FAR
Maximum Residential FAR 1.5 FAR 3.5 FAR
Maximum Commercial FAR 0.4 FAR 0.4 FAR
Minimum Mixed-Use Ground Floor Commercial FAR 0.25 FAR 0.25 FAR
Total Number of Units 3 units (tuck under parking)34 units
Average Unit Size 1,800 sf 902 sf
Retail Preservation 10,700 2,812 sf
Density 11 du/ac 97 du/ac
FAR Overall 1.43 FAR 3.56 FAR
Residential FAR 0.47 FAR 3.75 FAR
Commercial FAR 0.96 FAR 0.25 FAR
Parking Provided 38 commercial spaces 27 residential spaces
Parking Type 2 levels underground Podium, mechanical
PR
O
T
O
T
Y
P
E
R
E
S
U
L
T
S
STA
N
D
A
R
D
S
Modified standards indicated in red.
37’ Height Limit
Existing CC(2) Zoning Modified CC(2) Zoning
60’-0” Height Limit
Item 2
Att B_UFS Physical
Feasibility Site Tests
Packet Pg. 44
City of Palo Alto Housing Incentive Program (HIP) Amendments to Implement the 6th Cycle Housing Element12
Prima
r
y
S
t
r
e
e
t
Side
S
t
r
e
e
t
Prima
r
y
S
t
r
e
e
t
Side
S
t
r
e
e
t
RM-20 District
Existing RM-20 Zoning
4 Apartments
The daylight plane, height limit, setbacks, and maximum site coverage limit unit yield on this site.
Modified RM-20 Zoning
7 Apartments
Adjustements to zoning allow the development envelope to be more flexible and doubles the amount of housing possible on the site.
Item 2
Att B_UFS Physical
Feasibility Site Tests
Packet Pg. 45
Physical Feasibility Analysis Report 13
Existing RM-20 Zoning Modified RM-20 Zoning
Setback: Front 20 feet 10 feet
Setback: Interior Side 10, 6 feet 5 feet
Setback: Rear 10 feet 5 feet
Setback: Street Side Yard 16 feet 5 feet
Build-to-Lines: Frontage N/A N/A
Build-to-Lines: Side Street N/A N/A
Height Limit Buffer N/A N/A
Height 30 feet 40 feet
Daylight Plane 10 feet, 45 degrees 2 story residential edges or 16 feet, 45 degrees
Maximum Site Coverage 35%65%
Minimum Landscape/Open Space
Coverage
35% on ground 35% on ground and/or
upper level
Parking: Studio/1BR 1 1
Parking: 2+ BR 2 1.5
Maximum Density 20 du/ac No maximum
Maximum FAR Overall 1.0 FAR 2.0 FAR
Parking Required 8 spaces 10.5 spaces
Total Number of Units 4 units 7 units
Average Unit Size 2,500 sf 2,341 sf
Density 18 du/ac 32 du/ac
FAR Overall 1.0 FAR 1.21 FAR
Parking Provided (spaces)8 spaces 11 spaces
Parking Type Tuck under Tuck under
10’-0”10’-0”
30’-0” Height Limit 30’-0” Height Limit
Dayl
i
g
h
t
p
l
a
n
e
Dayli
g
h
t
p
l
a
n
e
45degrees45
degrees
Modified RM-20 ZoningExisting RM-20 Zoning
30’-0” Height Limit
10’-0”
Dayl
i
g
h
t
P
l
a
n
e
16’-0”
45°45°
Dayl
i
g
h
t
P
l
a
n
e
40’-0” Height Limit
PR
O
T
O
T
Y
P
E
R
E
S
U
L
T
S
STA
N
D
A
R
D
S
Modified standards indicated in red.
Item 2
Att B_UFS Physical
Feasibility Site Tests
Packet Pg. 46
City of Palo Alto Housing Incentive Program (HIP) Amendments to Implement the 6th Cycle Housing Element14
RM-30 District
Existing RM-30 Zoning
4 Apartments
The daylight plane and maximum site coverage limits development to the extent that the prototype does not reach the limits of the building envelope.
Modified RM-30 Zoning
7 Apartments
Modification of the daylight plane and the maximum site coverage allows for development to fill the building envelope while still maintaining the daylight plane.
Side S
t
r
e
e
t
Side S
t
r
e
e
t
Prim
a
r
y
S
t
r
e
e
t
Prim
a
r
y
S
t
r
e
e
t
Item 2
Att B_UFS Physical
Feasibility Site Tests
Packet Pg. 47
Physical Feasibility Analysis Report 15
16’-0”45
40’-0” Height Limit
Dayli
g
h
t
p
l
a
n
e
10’-0”45
35’-0” Height Limit
degreesDayli
g
h
t
p
l
a
n
e
Existing RM-30 Zoning Modified RM-30 Zoning
Setback: Front 20 feet 10 feet
Setback: Interior Side 10, 6 feet 5 feet
Setback: Rear 10 feet 5 feet
Setback: Street Side Yard 16 feet 5 feet
Build-to-Lines: Frontage N/A N/A
Build-to-Lines: Side Street N/A N/A
Height Limit Buffer N/A N/A
Height 35 feet 40 feet
Daylight Plane 10 feet, 45 degrees 2 story residential edges or 16 feet, 45 degrees
Maximum Site Coverage 40%65%
Minimum Landscape/Open Space
Coverage
30%30%
Parking: Studio/1BR 1 1
Parking: 2+ BR 2 1.5
Maximum Density 30 du/ac No maximum
Maximum FAR Overall 1.0 FAR 2.5 FAR
Parking Required 8 spaces 10.5 spaces
Total Number of Units 4 7
Average Unit Size 1,650 sf 1,457 sf
Density 27 du/ac 47 du/ac
FAR Overall 1.0 FAR 1.62 FAR
Parking Provided 8 spaces 11 spaces
Parking Type Tuck under, driveway Tuck under, tandem
Modified RM-30 ZoningExisting RM-30 Zoning
35’-0”
10’-0”16’-0”
45°45°
Daylight
Plane
Daylight
Plane
PR
O
T
O
T
Y
P
E
R
E
S
U
L
T
S
STA
N
D
A
R
D
S
Modified standards indicated in red.
40’-0” Height Limit
Item 2
Att B_UFS Physical
Feasibility Site Tests
Packet Pg. 48
City of Palo Alto Housing Incentive Program (HIP) Amendments to Implement the 6th Cycle Housing Element16
RM-40 District
Existing RM-40 Zoning
4 Townhomes
The setbacks and daylight plane on this small (and typical) site limit the shape of the building reducing the amount of housing possible on the site. The daylight plane rules prevent a
development from meeting the district height
limit. This site test assumes no parking.
Stre
e
t
F
r
o
n
t
a
g
e
Stre
e
t
F
r
o
n
t
a
g
e
50’
-
0
”
50’
-
0
”
100’-0
”
100’-0
”
Existing RM-40 Zoning - No Parking
8 Apartments
To better understand the maximum development possible within this limited building envelopment, the site test was run again without parking requirements.
Item 2
Att B_UFS Physical
Feasibility Site Tests
Packet Pg. 49
Physical Feasibility Analysis Report 17
Modified RM-40 Zoning - 10,000sf site
21 Apartments
The width of two typical lots allows the layout of podium parking to be more efficient. Parking was also modified to 1 space per unit minimum. The number of units is still limited by the
modified parking required, resulting in three
stories over podium parking.
Stre
e
t
F
r
o
n
t
a
g
e
Modified RM-40 Zoning
16 Apartments
Revising setbacks to be more uniform with other zoning districts and removing the daylight plane allows a regularly shaped building and more capacity of housing. This allows for four
stories of housing on top of the podium if
only the building envelope was considered, excluding limits on FAR, density, or parking.
Item 2
Att B_UFS Physical
Feasibility Site Tests
Packet Pg. 50
City of Palo Alto Housing Incentive Program (HIP) Amendments to Implement the 6th Cycle Housing Element18
Existing RM-40 Zoning Existing RM-40 Zoning
Setback: Front 20 feet 20 feet
Setback: Interior Side 10, 6 feet 10, 6 feet
Setback: Rear 10 feet 10 feet
Setback: Street Side Yard 16 feet 16 feet
Build-to-Lines: Frontage N/A N/A
Build-to-Lines: Side Street N/A N/A
Height Limit Buffer N/A N/A
Height 40 feet 40 feet
Daylight Plane 10 feet, 45 degrees 10 feet, 45 degrees
Maximum Site Coverage 45%45%
Minimum Landscape/Open Space
Coverage
30%30%
Parking: Studio/1BR 1 0
Parking: 2+ BR 2 0
Maximum Density 40 du/ac No maximum
Maximum FAR Overall 1.0 FAR 1.0 FAR
Parking Required 7 spaces 0 spaces
Total Number of Units 4 units 8 units
Average Unit Size 1,009 sf 644 sf
Density 34 du/ac 67 du/ac
FAR Overall 0.88 FAR 1.0 FAR
Parking Provided 7 spaces 0 spaces
Parking Type Podium N/A
50’-0” Height Limit
35’-0” Height @ intersection of the daylight planes
10’-0”
45 de
g
r
e
e
d
a
y
l
i
g
h
t
p
l
a
n
e
50’-0” Height Limit
35’-0” Height @ intersection of the daylight planes
10’-0”
45 de
g
r
e
e
d
a
y
l
i
g
h
t
p
l
a
n
e
Modified RM-40 ZoningExisting RM-40 Zoning
40’-0” Height Limit 40’-0” Height Limit
35’-0” Intersection of daylight planes35’-0” Intersection of daylight planes
10’-0”
30’-0”30’-0”
10’-0”
45°45°
PR
O
T
O
T
Y
P
E
R
E
S
U
L
T
S
STA
N
D
A
R
D
S
Modified standards indicated in red.
Item 2
Att B_UFS Physical
Feasibility Site Tests
Packet Pg. 51
Physical Feasibility Analysis Report 19
Modified RM-40 Zoning Modified RM-40 Zoning
Setback: Front 10 feet 10 feet
Setback: Interior Side 5 feet 5 feet
Setback: Rear 5 feet 5 feet
Setback: Street Side Yard 5 feet 5 feet
Build-to-Lines: Frontage N/A N/A
Build-to-Lines: Side Street N/A N/A
Height Limit Buffer N/A N/A
Height 50 feet 50 feet
Daylight Plane N/A N/A
Maximum Site Coverage 70%70%
Minimum Landscape/Open Space
Coverage
20%20%
Parking: Studio/1BR N/A 1
Parking: 2+ BR N/A 1
Maximum Density No maximum No maximum
Maximum FAR Overall N/A 2.5 FAR
Parking Required N/A 21 spaces
Total Number of Units 16 units 21 units
Average Unit Size 644 sf 734 sf
Density 130 du/ac 91 du/ac
FAR Overall 2.8 FAR 2.3 FAR
Parking Provided 6 spaces 21 spaces
Parking Type Podium Podium, mechanical
45’-0”45’-0”45’-0”45’-0”45’-0”45’-0”45’-0”45’-0”
45’-0”45’-0”
45’-0”45’-0”45’-0”45’-0”45’-0”45’-0”45’-0”45’-0”
45’-0”45’-0”45’-0”45’-0”45’-0”45’-0”45’-0”45’-0”
45’-0”45’-0”45’-0”45’-0”45’-0”45’-0”45’-0”45’-0”
Modified RM-40 Zoning (10,000 sf lot)Modified RM-40 Zoning
50’-0” Height Limit50’-0” Height Limit
40’-0”
50’-0”
PR
O
T
O
T
Y
P
E
R
E
S
U
L
T
S
STA
N
D
A
R
D
S
Modified standards indicated in red.
Item 2
Att B_UFS Physical
Feasibility Site Tests
Packet Pg. 52
City of Palo Alto Housing Incentive Program (HIP) Amendments to Implement the 6th Cycle Housing Element20
ROLM District
Existing ROLM Zoning
16 Apartments
The existing height limit restricts the housing typology to townhomes. The potential is much higher at this site. The 40% maximum site coverage is also a constraint on housing
potential for stacked flats.
Modified ROLM Zoning
130 Apartments
More housing is possible If the height limit and maximum site coverage is revised to allow for apartments. Allowing the landscape/open space requirement to be met on upper levels
also contributes to efficient use of the site.
Prim
a
r
y
S
t
r
e
e
t
Prim
a
r
y
S
t
r
e
e
t
304’
293’
145
’
Item 2
Att B_UFS Physical
Feasibility Site Tests
Packet Pg. 53
Physical Feasibility Analysis Report 21
Existing ROLM Zoning Modified ROLM Zoning
Setback: Front 20 feet 10 feet
Setback: Interior Side 10, 6 feet 5 feet
Setback: Rear 10 feet 5 feet
Setback: Street Side Yard 16 feet 5 feet
Build-to-Lines: Frontage N/A N/A
Build-to-Lines: Side Street N/A N/A
Height Limit Buffer N/A N/A
Height 35 feet 60 feet
Daylight Plane N/A N/A
Maximum Site Coverage 40%70%
Minimum Landscape/Open Space
Coverage
30% on ground 20% on ground and/or
upper level
Parking: Studio/1BR 1 1
Parking: 2+ BR 2 1
Maximum FAR Overall 0.6 FAR 2.5 FAR
Parking Required 32 spaces 130 spaces
Total Number of Units 16 units 130 units
Average Unit Size 1,633 sf 760 sf
Density 16 du/ac 130 du/ac
FAR Overall 0.6 FAR 2.7 FAR
Parking Provided 32 spaces 139 spaces
Parking Type Surface and tuck under Podium, Mechanical
58’-0”
60’-0” Height Limit
58’-0”58’-0”
65’-0”65’-0”
35’-0”35’-0”
Existing ROLM Zoning Modified ROLM Zoning
35’-0” Height Limit
PR
O
T
O
T
Y
P
E
R
E
S
U
L
T
S
STA
N
D
A
R
D
S
Modified standards indicated in red.
30’-0”
Item 2
Att B_UFS Physical
Feasibility Site Tests
Packet Pg. 54
City of Palo Alto Housing Incentive Program (HIP) Amendments to Implement the 6th Cycle Housing Element22
Recommendations
Potential Changes to Enable Feasibility
Already Planned/Underway
• Increase residential densities (on specific sites in Housing Element Sites Inventory)
• Decrease parking requirements to match
standards permitted under State law
• AB2097 eliminates parking within ½
mile of Caltrain
• State Density Bonus law allows reduced
parking
Additional Changes to Achieve Financial
Feasibility and Stacked Flats/Mixed Use
• Increase FAR and density
• Increase building height
• Reduce setbacks (esp. front/street side)
• Increase maximum site coverage
• Decrease landscape/open space coverage
and allow more flexibility in open space
• Revise retail preservation applicability
Development standards work in unison. Other
changes will be necessary to complement
changes in density and parking.
Other Changes to Consider to Enable
Feasibility
• Simplify and reduce requirements for open
space
• Modify the daylight plane for small lots or lots that have 100 foot depths or bigger
• Reduce parking requirements for lots smaller than 10,000sf, “small lot program”
• Modify height buffer (i.e., within 150 ft. of a residential use)
• Allow height definition to exclude parapet height and rooftop mechanical
• Exclude mechanical rooms from FAR so that building systems are not undersized
Item 2
Att B_UFS Physical
Feasibility Site Tests
Packet Pg. 55
Physical Feasibility Analysis Report 23
Mixed-Use Zones RM Zones
Zoning
Designation CD-C CN CC(2) RM-20 RM-30 RM40 ROLM (RM-30)
Residential Units 4 12 3 4 4 4 16
Parking Spaces 8 21 38 8 8 7 32
Residential Density (du/ac)34 33 11 18 27 34 16
FAR 1.23 1.04 1.43 1.0 1.0 0.88 0.6
Building Height (feet)40 30 37 30 30 30 30
Typology Town Homes Town Homes Town Homes Town Homes Town Homes Town Homes Town Homes
Financially
Feasible?X X X X X X X
Current Zoning Standards Yield
Mixed-Use Zones RM Zones
Zoning Designation CD-C CN CC(2) RM-20 RM-30 RM40 ROLM (RM-30)
Residential Units 15 35 34 7 7 16 130
Parking
Spaces 18 46 27 11 11 6 139
Residential Density (du/ac)125 97 130 32 47 130 130
FAR 4.16 2.19 3.56 1.21 1.62 2.8 2.7
Building Height (feet)60 50 60 40 40 50 58
Typology Apartments Apartments Apartments Town Homes Town Homes Apartments Apartments
Financially Feasible?✓✓✓✓✓✓✓
Modified Zoning Standards Yield
Item 2
Att B_UFS Physical
Feasibility Site Tests
Packet Pg. 56
City of Palo Alto Housing Incentive Program (HIP) Amendments to Implement the 6th Cycle Housing Element24
Mixed-Use Zones RM Zones
Zoning Designation CD-C CN CC(2) RM-20 RM-30 RM40 ROLM (RM-30)
Development Intensity
FAR 2.0 4.0 1.5 3.5 2.0 3.5 1.0 2.0 1.0 2.5 1.0 3.0 0.6 3.5
Res FAR 1.0 4.0 1.5 3.5 2.0 3.5 2.25 2.25 2.5 2.25
Minimum Mixed Use Ground Floor Commercial FAR
N/A 0.15 0.0 0.25 0.0 N/A N/A N/A N/A
Residential Density Max (du/ac)No max No max No max 20 No Max 30 No Max 40 No Max 30 No Max
Residential Density Min (du/ac)N/A N/A N/A 11 16 21 16
Maximum Building Heights
Height Limit Buffer Yes (50') Yes (40')No No No No No
Height (feet)40 60 35 50 37 60 30 40 35 40 40 50 35
60
Daylight Plane
(* for side and rear
abutting R, lots less than 70 feet)
N/A 16 feet
height, 60
degrees (in lieu of buffer)
N/A 10 16
feet, 45
degrees
10 16
feet, 45
degrees
10 feet, 45
degrees
N/A
N/A
Item 2
Att B_UFS Physical
Feasibility Site Tests
Packet Pg. 57
Physical Feasibility Analysis Report 25
Setbacks
Setback: Front N/A 0-10' for sidewalks 0-10' for sidewalks 0
20 10 20 10 20 10 20 10
Setback: Interior Side N/A 10 5 10 0 10, 6 5 10, 6 5 10, 6 5 10, 6 5
Setback: Rear 10' 5 for residential portion
10' 5 for residential portion
10' for residential portion 0
10 5 10 5 10 5 10 5
Setback: Street Side Yard N/A 5 5 0 16 5 16 5 16 5 16 5
Mixed-Use Zones RM Zones
Zoning Designation CD-C CN CC(2) RM-20 RM-30 RM40 ROLM (RM-30)
Max Site Coverage N/A 100%100%35% 65%40% 65%45% 70%40% 70%
Landscape/Open
Space Coverage
20%35%20%35%30%20%30%
Landscape/Open
Space Location
Ground floor only Ground floor and upper stories
Parking Requirements
Parking: Studio/1 BR 1 1 1 0.5 1 1 1 1
Parking: 2+ BR 2 1.5 2 1.5 2 1.0 2 1.5 2 1.5 2 1 2 1
Item 2
Att B_UFS Physical
Feasibility Site Tests
Packet Pg. 58
HOUSING INCENTIVE PROGRAM STUDY:
TESTING THE FINANCIAL FEASIBILITY OF
MULTI-FAMILY HOUSING TYPOLOGIES
Prepared for:
City of Palo Alto
Prepared by:
Keyser Marston Associates, Inc.
June 13, 2024
Item 2
Att C_KMA Financial
Feasibility_ExecSumExcerpt
Packet Pg. 59
Housing Incentive Program Study Page i
Keyser Marston Associates, Inc. 2405001v2.PA / 17125.015.001 June 13, 2024
TABLE OF CONTENTS
I. EXECUTIVE SUMMARY ............................................................................................................... 1
A. FINANCIAL EVALUATION METHODOLOGY .................................................................................................. 1
B. BASE ZONING PROTOTYPE ANALYSIS ........................................................................................................ 1
C. PROPOSED ZONING PROTYPE ANALYSIS .................................................................................................... 4
D. ADDITIONAL POLICY CONSIDERATIONS ..................................................................................................... 6
II. FINANCIAL EVALUATION METHODOLOGY .................................................................................. 8
A. ANALYSIS OF BASE ZONING PROTOTYPES .................................................................................................. 8
B. ANALYSIS OF PROPOSED ZONING PROTOTYPES ........................................................................................... 8
C. FINANCIAL EVALUATION ORGANIZATION ................................................................................................... 9
D. PRO FORMA ASSUMPTIONS ................................................................................................................. 10
III. ANALYSIS OF BASE ZONING PROTOTYPES ................................................................................ 12
A. SITE A: CD-C ZONE.......................................................................................................................... 12
B. SITE B: CN ZONE .............................................................................................................................. 13
C. SITE C: CC(2) ZONE .......................................................................................................................... 16
D. SITE D: RM-20 ZONE ........................................................................................................................ 18
E. SITE E: RM-30 ZONE ........................................................................................................................ 20
F. SITE F: RM-40 ZONE ......................................................................................................................... 21
G. CONCLUSIONS ................................................................................................................................... 23
IV. ANALYSIS OF PROPOSED ZONING PROTOTYPES ....................................................................... 25
A. SITE A: CD-C ZONE ........................................................................................................................... 25
B. SITE B: CN ZONE .............................................................................................................................. 27
C. SITE C: CC(2) ZONE .......................................................................................................................... 29
D. SITE D: RM-20 ZONE ........................................................................................................................ 32
E. SITE E: RM-30 ZONE ........................................................................................................................ 34
F. SITE F: RM-40 ZONE ......................................................................................................................... 35
G. CONCLUSIONS ................................................................................................................................... 42
V. POLICY CONSIDERATIONS ........................................................................................................ 44
A. APPLICABILITY OF ZONING MODIFICATIONS TO SMALL SITES ....................................................................... 44
B. APPLICABILITY OF ZONING MODIFICATIONS TO LARGER SITES ...................................................................... 44
C. CURRENT CITY PERMITS AND FEES ......................................................................................................... 45
D. CONCLUSIONS ................................................................................................................................... 45
Item 2
Att C_KMA Financial
Feasibility_ExecSumExcerpt
Packet Pg. 60
Housing Incentive Program Study Page ii
Keyser Marston Associates, Inc. 2405001v2.PA / 17125.015.001 June 13, 2024
ATTACHMENTS
Attachment 1: Base Zoning Prototype Analyses
Appendix A: Site A – CD-C Zone
Appendix B: Site B – CN Zone
Appendix C: Site C – CC(2) Zone
Appendix D: Site D – RM-20 Zone
Appendix E: Site E – RM-30 Zone
Appendix F: Site F – RM-40 Zone
Attachment 2: Proposed Zoning Prototype Analyses
Appendix A: Site A – CD-C Zone
Appendix B: Site B – CN Zone
Appendix C: Site C – CC(2) Zone
Appendix D: Site D – RM-20 Zone
Appendix E: Site E – RM-30 Zone
Appendix F: Site F – RM-40 Zone
Attachment 3: Background Information
Appendix A: Market Surveys
Exhibit I Resale Home Survey
Exhibit II New Home Sales
Exhibit III Apartment Rent Survey
Appendix B: Affordable Sales Price Calculations
Item 2
Att C_KMA Financial
Feasibility_ExecSumExcerpt
Packet Pg. 61
Housing Incentive Program Study Page 1
Keyser Marston Associates, Inc. 2405001v2.PA / 17125.015.001 June 13, 2024
I. EXECUTIVE SUMMARY
The City of Palo Alto (City) is considering modifications to the Zoning Ordinance to create incentives for
multi-family and affordable housing development. The intent of the revised zoning standards is to
enable multi-family housing typologies that are both physically feasible and financially feasible.
To that end, the City engaged Keyser Marston Associates, Inc. (KMA) to evaluate the financial
characteristics associated with prototypical residential projects. The intent of this financial analysis is
to ensure that the proposed zoning modifications allow for financially feasible multi-family residential
projects. The following report discusses the financial analyses prepared by KMA.
A. Financial Evaluation Methodology
KMA utilized the following methodology to evaluate the financial feasibility of each prototype:
1. KMA prepared pro forma analyses based on the scopes of development that were provided by
Urban Field Studio.
2. The pro forma analyses were used to compare the value supported by the prototype project to
the project’s development cost plus a standard developer profit.
3. If the project’s estimated value was less than the estimated costs plus developer profit, the
project was deemed not likely to be built.
B. Base Zoning Prototype Analysis
As the first step in the process, Urban Field Studio and Lexington Planning created prototype
development scenarios for six sites that comport with the City’s current development standards. For
the purposes of this KMA analysis, “current” and “base” development standards refer to the base
zoning standards applicable citywide, but do not take into account increased density standards
available to Housing Element opportunity sites (adopted December 2023) or those available per State
of California (State) Density Bonus Law. As described in Attachment 1, KMA evaluated the financial
feasibility of each “Base Zoning Prototype.”
Item 2
Att C_KMA Financial
Feasibility_ExecSumExcerpt
Packet Pg. 62
Housing Incentive Program Study Page 2
Keyser Marston Associates, Inc. 2405001v2.PA / 17125.015.001 June 13, 2024
As can be seen in Attachment 1, each of the Base Zoning Prototypes was found not likely to be
developed under the City’s current zoning standards. The results of the KMA analyses of the Base
Zoning Prototypes are presented in the table on the following page.
Item 2
Att C_KMA Financial
Feasibility_ExecSumExcerpt
Packet Pg. 63
SITE C SITE F
CC(2) Zone RM-40 Zone
I.Site Area (Sf)11,250 5,000
II.Development Scope
A.Unit Type Townhome Apartment Townhome Townhome Townhome Townhome
B.Unit Mix
Studio Units 0 3 0 0 0 1
One-Bedroom Units 0 1 0 0 0 0
Two-Bedroom Units 0 12 3 0 0 3
Three-Bedroom Units 4 0 0 2 4 0
Four-Bedroom Units 0 0 0 2 0 0
Total Units 4 16 3 4 4 4
B.Unit Sizes
Studio Units 0 360 0 0 0 360
Live/Work One-Bedroom Units 0 0 0 0 0 0
One-Bedroom Units 0 528 0 0 0 0
Two-Bedroom Units 0 828 1,810 0 0 1,120
Three-Bedroom Units 1,575 0 0 1,891 1,429 0
Four-Bedroom Units 0 0 0 2,791 0 0
Net Living Area 6,300 11,544 5,430 9,364 5,716 3,720
Average SF/Unit 1,575 722 1,810 2,341 1,429 930
Retail GBA 0 2,900 10,784 0 0
Gross Building Area (Sf)6,300 19,701 18,230 9,364 5,716 3,720
Floor Area Ratio (FAR)1.23 1.22 1.53 0.94 0.86 0.74
Density (Units/Acre)34 44 12 17 26 35
III.Estimated Development Cost
A.Land Value $1,614,000 $4,965,000 $3,544,000 $3,150,000 $2,087,000 $1,575,000
B.Direct Costs $2,387,000 $8,902,000 $9,571,000 $3,690,000 $2,284,000 $1,528,000
Per Sf of Net Saleable Area $379 $771 $1,763 $394 $400 $411
C.Public Permits & Fees $384,000 $1,392,000 $387,000 $412,000 $380,000 $364,000
Per Unit $96,000 $87,000 $129,000 $103,000 $95,000 $91,000
D.Indirect + Financing Costs $1,600,000 $3,515,000 $3,933,000 $2,505,000 $1,603,000 $1,146,000
As a % of Direct Costs 67%39%41%68%70%75%
Total Development Cost $5,985,000 $18,774,000 $17,435,000 $9,757,000 $6,354,000 $4,613,000
Per Square Foot of GBA $950 $953 $956 $1,042 $1,112 $1,240
IV.Projected Revenues
A.Residential Revenue $7,005,000 $781,000 $6,101,000 $9,575,000 $6,356,000 $4,164,000
Per Market Rate Unit $1,751,300 $4,300 $2,033,700 $2,393,800 $1,589,000 $1,041,000
Per Affordable Unit $0 $0 $0 $0 $0 $0
B.Net Sales Revenue / Value
Residential Component $6,620,000 $5,765,000 $9,048,000 $6,006,000 $3,935,000
Retail Component 10,283,000
Total Net Sales Revenue / Value $6,620,000 $15,151,000 $16,048,000 $9,048,000 $6,006,000 $3,935,000
V.
$794,000 $1,515,000 $1,720,000 $1,086,000 $721,000 $472,000
VI.Net Surplus/(Cost)
A.Net Sales Revenue / Value $6,620,000 $15,151,000 $16,048,000 $9,048,000 $6,006,000 $3,935,000
B.Revenue Offsets
Total Development Cost $5,985,000 $18,774,000 $17,435,000 $9,757,000 $6,354,000 $4,613,000
Threshold Developer Profit 794,000 1,515,000 1,720,000 1,086,000 721,000 472,000
Total Revenue Offsets $6,779,000 $20,289,000 $19,155,000 $10,843,000 $7,075,000 $5,085,000
VII.Net Surplus/(Cost)($159,000)($5,138,000)($3,107,000)($1,795,000)($1,069,000)($1,150,000)
$15,151,000
Threshold Developer Profit @ 12%
Net Residential Sales Revenue or
10% of Apt Value
SUMMARY OF BASE ZONING PROTOTYPES
CD-C Zone CN Zone RM-20 Zone RM-30 Zone
5,125 15,761 10,000 6,626
SITE A SITE B SITE D SITE E
Item 2
Att C_KMA Financial
Feasibility_ExecSumExcerpt
Packet Pg. 64
Housing Incentive Program Study Page 4
Keyser Marston Associates, Inc. 2405001v2.PA / 17125.015.001 June 13, 2024
C. Proposed Zoning Protype Analysis
Subsequent to the analysis of the Base Zoning Prototypes, Urban Field Studio and Lexington Planning
created prototype development scenarios that modified current development standards (Proposed
Zoning Prototypes). The purpose of modifying current development standards was to create zoning
requirements that allow for the development of multi-family projects that are both physically and
financially feasible.
Modifications were made to a variety of development standards such as: reduced parking ratios,
increased building height, increased floor-area-ratios (FAR), reduced setbacks, modified daylight
planes, reduced lot and landscape coverage and changes to ground floor retail requirements.
Specifically, the modifications were intended to allow for additional units to be constructed on each of
the development sites (e.g., increased FAR) and/or to reduce the costs associated with developing
residential units (e.g. reduced parking requirements). These factors have a direct impact on the
financial feasibility of each development prototype.
The Proposed Zoning Prototypes evaluated in this analysis are the result of an iterative process
between KMA, Urban Field Studio, Lexington Planning and the City. A number of potential
modifications were tested for each of the sites in order to develop prototypes that were both
physically and financially feasible. In particular, for the RM-40 Zone site, three scenarios for proposed
modifications were evaluated in this analysis.
The KMA financial analyses of the Proposed Zoning Prototypes are presented in Attachment 2. As
shown, each of the Proposed Zoning Prototypes was found to be financially feasible under the
proposed zoning modifications.
The results of the KMA analyses of the Proposed Zoning Prototypes are presented in the table on the
following page.
Item 2
Att C_KMA Financial
Feasibility_ExecSumExcerpt
Packet Pg. 65
SITE A SITE B SITE C SITE D SITE E
No Parking
Limited
Parking 10,000 SF Lot
I.Site Area (Sf)5,125 15,761 11,250 10,000 6,626 5,000 5,000 10,000
II.Development Scope
A.Unit Type Condo Apartment Apartment Townhome Townhome Apartment Apartment Apartment
B.Unit Mix
Studio Units 0 0 8 0 0 4 3 0
Live/Work One-Bedroom Units 0 4 0 0 0 0 0 0
One-Bedroom Units 10 11 6 0 0 4 3 2
Two-Bedroom Units 1 18 16 2 0 0 6 16
Three-Bedroom Units 4 0 4 5 7 0 0 3
Total Units 15 33 34 7 7 8 12 21
B.Unit Sizes
Studio Units 0 0 514 0 0 415 450 0
Live/Work One-Bedroom Units 0 1,050 0 0 0 0 0 0
One-Bedroom Units 751 528 713 0 0 678 637 625
Two-Bedroom Units 1,240 828 1,066 1,593 0 0 740 971
Three-Bedroom Units 1,500 0 1,302 1,795 1,457 0 0 1,250
Net Living Area 14,746 24,912 30,654 12,163 10,199 4,370 7,701 20,540
Average Square Feet / Unit 983 755 902 1,738 1,457 546 642 978
Gross Building Area (Sf)20,841 33,240 42,895 12,163 10,199 5,016 10,725 26,114
Floor Area Ratio (FAR)4.07 1.94 0.94 1.22 1.54 1.00 2.15 5.22
Density (Units/Acre)127 91 132 30 46 70 105 183
III.Estimated Development Cost
A.Land Value $1,614,000 $4,965,000 $3,544,000 $3,150,000 $2,087,000 $1,575,000 $1,575,000 $3,150,000
B.Direct Costs $7,724,000 $12,553,000 $15,434,000 $4,614,000 $3,763,000 $1,895,000 $3,959,000 $9,727,000
Per Square Foot $524 $504 $503 $379 $369 $434 $514 $474
C.Public Permits & Fees $1,425,000 $2,805,000 $2,958,000 $686,000 $665,000 $656,000 $1,008,000 $1,827,000
Per Unit $95,000 $85,000 $87,000 $98,000 $95,000 $82,000 $84,000 $87,000
D.Indirect + Financing Costs $3,138,000 $5,250,000 $6,007,000 $2,222,000 $1,764,000 $915,000 $1,616,000 $3,864,000
As a % of Direct Costs 41%42%39%48%47%48%41%40%
Total Development Cost $13,901,000 $25,573,000 $27,943,000 $10,672,000 $8,279,000 $5,041,000 $8,158,000 $18,568,000
Per Square Foot of GBA $667 $769 $651 $877 $812 $1,005 $761 $711
IV.Projected Revenues
A.Residential Revenue $17,097,000 $1,741,000 $1,168,000 $12,863,000 $10,220,000 $363,000 $622,000 $1,234,000
Per Market Rate Unit $1,246,800 $4,500 $4,200 $2,060,700 $1,620,200 $3,700 $4,200 $5,100
Per Affordable Unit $444,500 NA NA $499,000 $499,000 NA NA NA
B.Total Net Sales Revenue / Value $16,157,000 $28,825,000 $31,327,000 $12,156,000 $9,658,000 $5,925,000 $10,325,000 $20,650,000
V.
$1,939,000 $2,883,000 $3,133,000 $1,459,000 $1,159,000 $593,000 $1,033,000 $2,065,000
VI.Net Surplus/(Cost)
A.Net Sales Revenue / Value $16,157,000 $28,825,000 $31,327,000 $12,156,000 $9,658,000 $5,925,000 $10,325,000 $20,650,000
B.Revenue Offsets
Total Development Cost $13,901,000 $25,573,000 $27,943,000 $10,672,000 $8,279,000 $5,041,000 $8,158,000 $18,568,000
Threshold Developer Profit 1,939,000 2,883,000 3,133,000 1,459,000 1,159,000 593,000 1,033,000 2,065,000
Total Revenue Offsets $15,840,000 $28,456,000 $31,076,000 $12,131,000 $9,438,000 $5,634,000 $9,191,000 $20,633,000
VII.Net Surplus/(Cost)$317,000 $369,000 $251,000 $25,000 $220,000 $291,000 $1,134,000 $17,000
Threshold Developer Profit @ 12%
Net Residential Sales Revenue or
10% of Apt Value
SUMMARY OF PROPOSED ZONING PROTOTYPES
SITE F
CD-C Zone CN Zone CC(2) Zone RM-20 Zone RM-30 Zone
RM-40 Zone
Item 2
Att C_KMA Financial
Feasibility_ExecSumExcerpt
Packet Pg. 66
Housing Incentive Program Study Page 6
Keyser Marston Associates, Inc. 2405001v2.PA / 17125.015.001 June 13, 2024
D. Additional Policy Considerations
The following section provides additional policy considerations for the City:
APPLICABILITY OF ZONING MODIFICATIONS TO SMALL SITES
The City is also interested in understanding the impact on financial feasibility if the reductions in
required parking ratios and/or building height and FAR are less substantial than those applied in the
Proposed Zoning Prototypes analysis. A key factor that should be considered in the decision making
process is that many of the sites evaluated in this analysis are fairly small – consisting of between 5,000
and 15,000 square feet of land area. For a development on a small site to achieve financial feasibility it
is necessary to be able to create an extremely efficient design.
Parking Standards
The proposed reduction in the parking requirements significantly enhances the potential for financially
feasible residential uses to be developed. A change to the proposed parking standard would require
more site area to be dedicated for parking spaces, which would materially reduce the site’s buildable
area. Given the limited number of units that each site can support a loss of even a few units on each
site results in a significant impact on financial feasibility.
Height and FAR Standards
The achievable building footprint on a small site is disproportionately lower than the footprint that can
be accommodated on a more typically sized development site. The proposed increases in FAR and
height are necessary to compensate for this limitation. Recognizing the small number of units that can
be accommodated per floor, even the reduction of one floor of building area has a significant impact
on financial feasibility.
APPLICABILITY OF ZONING MODIFICATIONS TO LARGER SITES
As discussed above, this analysis primarily focuses on small sites. The site sizes were intended to be
representative of typical parcel sizes within each zoning designation. However, the proposed zoning
Item 2
Att C_KMA Financial
Feasibility_ExecSumExcerpt
Packet Pg. 67
Housing Incentive Program Study Page 7
Keyser Marston Associates, Inc. 2405001v2.PA / 17125.015.001 June 13, 2024
modifications may be applied to sites of all sizes within each zoning designation. Therefore, a
developer may utilize the proposed zoning modifications on sites larger than evaluated in this analysis.
Without the physical constraints imposed by small sites, larger sites will likely be developed with more
efficiently designed projects. Therefore, it is possible that the proposed zoning modifications will have
a greater positive financial impact on larger sites.
CURRENT CITY PERMITS AND FEES
The pro forma analyses included in this report take into account the City’s current permits and impact
fees. Specifically, the development costs for each prototype include the following impact fees: parks
fee, community center fee, libraries fee, public safety facilities fee, general government facilities fee,
school district fee, and the in-lieu art fee. As such, the financial analyses demonstrate that Proposed
Zoning Prototypes are financially feasible with the City’s current impact fee schedule.
CONCLUSIONS
Based on the financial analyses that KMA has prepared over the course of this engagement, it is our
opinion that the proposed modifications to the zoning standards are necessary to create sufficient
incentive to attract residential development on the prototypical sites evaluated in this analysis. This is
particularly true of the parking requirements and building height/FAR, all of which tend to have an
outsized impact on financial feasibility.
Item 2
Att C_KMA Financial
Feasibility_ExecSumExcerpt
Packet Pg. 68
To download the complete Keyser Marston Associates’ report, “Housing Incentive Program
Study: Testing The Financial Feasibility Of Multi-Family Housing Typologies,” please use the
link below:
https://www.cityofpaloalto.org/files/assets/public/v/1/planning-amp-development-
services/long-range-planning/kma-housing-incentive-program-report_complete.pdf
Item 2
Att C_KMA Financial
Feasibility_ExecSumExcerpt
Packet Pg. 69
Middlefield Road
Cowper Street
Waverley Street
Alma Street
El Camino Real
Louis Road
Hy 101 South
Ross Road
Hy 101 North
Webster Street
Bryant Street
Channing Avenue East Bayshore Road
Sand Hill Road
Hamilton Avenue
Page Mill Road
Lincoln Avenue
San Antonio Road
University Avenue
Newell Road
Oregon Expressway
Seale Avenue
South Court
High Street
Charleston Road
Park Boulevard
East Meadow Drive
Stanford Avenue
Colorado Avenue
West Bayshore Road
Foothill Expressway
Hanover Street
Miranda Avenue
Arastradero Road
Fabian Way
Homer Avenue
Greer Road
Ramona Street
Edgewood Drive
Loma Verde Avenue
Everett Avenue
Churchill Avenue
Matadero Avenue
Lowell Avenue
Center Drive
Tennyson Avenue
Los Robles Avenue
California Avenue
Barron Avenue
Welch Road
Kingsley Avenue
Maybell Avenue
Wilkie Way
Hansen Way
Coleridge Avenue
Byron Street
Ely Place
Oregon Avenue
Marion Avenue
North California Avenue
Emerson Street
Pitman Avenue
Laguna Avenue
Grove Avenue
Ferne Avenue
Porter Drive
Castilleja Avenue
Hale Street
Chimalus Drive
College Avenue
Amherst Street
Seneca Street
Lane 66Bowdoin Street
Stockton Place
Harker Avenue
Embarcadero Road
Ames Avenue
El Dorado Avenue
La Para Avenue
Clark Way
Grant Avenue
Birch Street
Hawthorne Avenue
Clara Drive
Coyote Hill Road
Columbia Street
Georgia Avenue
Hillview Avenue
Rhodes Drive
San Antonio Avenue
Cambridge Avenue
Olive Avenue
La Donna Street
El Camino Way
Parkinson Avenue
Kipling Street
Pasteur Drive
Heather Lane
Kellogg Avenue
Alger Drive
Florales Drive
Forest Avenue
Monroe Drive
Greenwood Avenue
Boyce Avenue
Sherman Avenue
Oberlin Street
Nathan Way
Urban Lane
Harvard Street
Iris Way
Hopkins Avenue
Dana Avenue
Fulton Street
Sutherland Drive
Lambert Avenue
Vineyard Lane
Marshall Drive
Geng Road
Orme Street
El Carmelo Avenue
Parkside Drive
Walnut Drive
Maddux Drive
Sheridan Avenue
Wildwood Lane
Elsinore Drive
Fernando Avenue
Moreno Avenue
Sutter Avenue
Edlee Avenue
Ventura Avenue
Arbutus Avenue
Chaucer Street
Shopping Center Way
Walter Hays Drive
Jackson Drive
Kenneth Drive
Patricia Lane
Whitclem Drive
Cereza Drive
Towle Way
Guinda Street
Transport Street
Lane 21
Bruce Drive
Encina Grande Drive
Faber Place
Los Palos Avenue
Ruthven Avenue
Laguna Way
Whitsell Street
Janice Way
Bibbits Drive
Warren Way
Madrono Avenue
Mayview Avenue
Rorke Way Evergreen Drive
Stelling Drive
Ashton Avenue
McKellar Lane
Jefferson Drive
Santa Rita Avenue
Addison Avenue
Saint Claire Drive
Rinconada Avenue
Second Street
Encina Avenue
Silva Avenue
Quarry Road
Bryson Avenue
Fabian Street
Nevada Avenue
Southwood Drive
Lupine Avenue
Poe Street
Park Avenue
Portola Avenue
Suzanne Drive
Sycamore Drive
Washington Avenue
Manzana Lane
Ash Street
Portage Avenue
Elwell Court
Wellsbury Way
Pepper Avenue
Wells Avenue
Lane 7 East
Tasso Street
Lytton Avenue
Mark Twain Street
Maple Street
Laura Lane
Dinah's Court
Melville Avenue
Palm Street
Lane 30
Tioga Court
Shasta Drive
Diablo Court
Varian Way
Saint Francis Drive
Page Mill Road
Park Boulevard
Byron Street
South Court
Byron Street
Fulton Street
Lytton Avenue
Dana Avenue
Oregon Avenue
Bryant Street
Emerson Street
San Antonio Road
College Avenue
Ramona Street
Georgia Avenue
Oregon Avenue
Mountain ViewStanford University
Menlo Park
Atherton
East Palo Alto
Los AltosPortola Valley
Los Altos Hills
Stanford
Menlo Park
Mountain View
Los AltosLos Altos Hills
Atherton
Portola Valley
Cupertino
Stanford University
Redwood City
East Palo Alto
Sunnyvale
Woodside
Legend
Housing Incentive Program Parcels - Existing
Housing Incentive Program Parcels - ProposedHousing Inventory Sites 7/8/2024
NVCAP
£¤101
Item 2
Att D_Existing & Proposed HIP
Applicability
Packet Pg. 70
Item 2
Att E_State Density Bonus Law
Handout
Packet Pg. 71
Item 2
Att E_State Density Bonus Law
Handout
Packet Pg. 72
Item 2
Att E_State Density Bonus Law
Handout
Packet Pg. 73
Item 2
Att E_State Density Bonus Law
Handout
Packet Pg. 74
Item No. 3. Page 1 of 1
Planning & Transportation Commission
Staff Report
From: Planning and Development Services Director
Lead Department: Planning and Development Services
Meeting Date: September 25, 2024
Report #: 2409-3474
TITLE
Approval of Planning & Transportation Commission Draft Summary Minutes of May 29, 2024
RECOMMENDATION
Staff recommends that the Planning & Transportation Commission (PTC) adopt the meeting
minutes.
BACKGROUND
Draft summary minutes from the May 29, 2024 Planning & Transportation Commission (PTC)
meeting were made available to the Commissioners prior to the September 25, 2024 meeting
date. The draft PTC minutes can be viewed online on the City’s website at bit.ly/PaloAlto PTC.
ATTACHMENTS
There are no attachments.
AUTHOR/TITLE:
Veronica Dao, Administrative Associate
Item 3
Staff Report
Packet Pg. 75
Item No. 4. Page 1 of 1
Planning & Transportation Commission
Staff Report
From: Planning and Development Services Director
Lead Department: Planning and Development Services
Meeting Date: September 25, 2024
Report #: 2409-3479
TITLE
Approval of Planning & Transportation Commission Draft Verbatim & Summary Minutes of June
26, 2024
RECOMMENDATION
Staff recommends that the Planning & Transportation Commission (PTC) adopt the meeting
minutes.
BACKGROUND
Draft verbatim and summary minutes from the June 26, 2024 Planning & Transportation
Commission (PTC) meeting were made available to the Commissioners prior to the September
25, 2024 meeting date. The draft PTC minutes can be viewed online on the City’s website at
bit.ly/PaloAltoPTC.
ATTACHMENTS
There are no attachments.
AUTHOR/TITLE:
Veronica Dao, Administrative Associate
Item 4
Staff Report
Packet Pg. 76
Item No. 5. Page 1 of 1
Planning & Transportation Commission
Staff Report
From: Planning and Development Services Director
Lead Department: Planning and Development Services
Meeting Date: September 25, 2024
Report #: 2409-3491
TITLE
Approval of Planning & Transportation Commission Draft Summary Minutes of April 24, 2024
RECOMMENDATION
Staff recommends that the Planning & Transportation Commission (PTC) adopt the meeting
minutes.
BACKGROUND
Draft summary minutes from the April 24, 2024 Planning & Transportation Commission (PTC)
meeting were made available to the Commissioners prior to the September 25, 2024 meeting
date. The draft PTC minutes can be viewed online on the City’s website at bit.ly/PaloAlto PTC.
ATTACHMENTS
There are no attachments.
AUTHOR/TITLE:
Veronica Dao, Administrative Associate
Item 5
Staff Report
Packet Pg. 77