HomeMy WebLinkAboutStaff Report 13900
City of Palo Alto (ID # 13900)
City Council Staff Report
Meeting Date: 1/10/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Adoption of an Interim Ordinance Amending Titles 16, 18 and 21 in
Response to Senate Bills 9 and 478, Including Amendment to the City's
Affordable Housing Requirements for SB 9 Projects. CEQA Status: This Action
is not Considered a Project or is Exempt from CEQA in Accordance With
Government Code Sections 66411.7(n) and 65852.21(j) or Section 15061 of
the State CEQA Guidelines.
From: City Manager
Lead Department: Planning and Development Services
Recommendation
Staff recommend the City Council:
1. Adopt the attached interim ordinance (Attachment A) integrating Senate Bill 9 and
further implementing Senate Bill 478 into the Palo Alto Municipal Code.
Background
On December 6, 2021,1 the City Council held a public hearing and adopted an urgency
ordinance amending Palo Alto Municipal Code Titles 18 and 21 in response to SB 9 and SB 478.
These two bills were adopted by the State legislature and signed into law by the Governor last
year; the laws became effective on January 1. Included in the Council’s action was the adoption
of a set of objective standards that apply to qualifying SB 9 projects.
Distinct from the above action, the City Council also considered an interim ordinance that
proposed the similar regulations as the urgency ordinance but it was not adopted that evening.
Before adopting this ordinance, the City Council requested the interim ordinance include a
requirement that qualifying SB 9 projects be subject to the City’s inclusionary housing
requirements. Specifically, the City Council’s motion directed staff to return at the earliest
possible time in January 2022 to adopt the subject interim ordinance and:
1 City Council Staff Report, dated December 6, 2021: https://www.cityofpaloalto.org/files/assets/public/agendas-
minutes-reports/agendas-minutes/city-council-agendas-minutes/2021/12-december/20211206/20211206pccsm-
amended-linked.pdf#page=198
City of Palo Alto Page 2
Include language to Senate Bill 9 impacted developments reflecting a 15%
affordable housing in-lieu fee to “for sale” units and existing residential impacts
fees for rental units, and request that staff return with additional analysis of the
impacts of these fees.
The attached interim ordinance reflects this direction in Section 23. It also includes additional
language recommended by staff for urban lot splits during the December 6, 2021 staff
presentation. In all other respects related to SB 9, the attached ordinance is the same as the
interim ordinance the City Council previously reviewed.2
Based on this new provision, qualifying SB 9 projects that result in a net new ownership housing
unit(s) that could be individually sold would be subject to the City’s inclusionary housing
requirement and the developer would likely make an in-lieu payment based on a fee set forth
in the City’s municipal fee schedule and in accordance with a formula set forth in the City’s
municipal code. Net new rental housing units, including accessory dwelling units that could not
have been constructed prior to SB 9 would be subject to residential impact fees to the extent
permitted by state law.3 In some instances a project may be subject to both fees. Fees would
not apply to projects that could have been constructed prior to SB 9’s adoption, such as a single
family home and ADU on an existing lot.
Regarding the Council’s direction for additional analysis of the impacts of these fees, staff is
unable to provide any substantive work on this effort given the short turn around on this
ordinance. Staff anticipates returning in spring with additional SB 9 provisions related to urban
lot splits and will fold in the impact fee analysis with that report.
Staff is transmitting this ordinance to the City Council on the Consent Calendar since the
ordinance was previously reviewed at a noticed public hearing (December 6, 2021) and includes
only a minor amendment that responds to Council direction.
Stakeholder Outreach
Due to the limited time from law adoption to implementation, robust public engagement has
not occurred on these items. Staff propose that, during 2022, the PTC and ARB engage in robust
public engagement efforts by hosting study sessions, workshops, and hearings while
considering permanent ordinances for SB 9, SB 478, and strengthening local no-net loss
provisions.
Environmental Review
The City Council finds that this Ordinance is statutorily exempt from the requirements of the
California Environmental Quality Act (CEQA) for the following reasons. Under Government Code
2 The attached ordinance also includes state mandated-implementation language related to SB 478, which was
previously documented and included with Council’s initial review.
3 State law exempts ADUs less than 750 square feet from being assessed fees and requires fees on larger ADUs to
be proportional to fees assessed on primary units.
City of Palo Alto Page 3
Sections 66411.7(n) and 65852.21(j), an ordinance adopted to implement the requirements of
SB 9 shall not be considered a project under CEQA. Additional sections of this ordinance
implementing SB 478 are exempt pursuant to Section 15061 of the State CEQA Guidelines
because they simply reflect pre-emptive state law that will be effective January 1, 2022. As
such, this ordinance does not reflect a change from the status quo and it therefore can be seen
with certainty that there is no possibility that the ordinance will have a significant effect on the
environment.
Attachments:
• Attachment A: Interim Ordinance to Implement SB 9 (INC AF HSG)
*NOT YET ADOPTED*
1
0160062_20211222_ay16
Ordinance No. ______
Interim Ordinance of the Council of the City of Palo Alto Modifying Chapters
16.65 (Citywide Affordable Housing Requirements), 18.10 (Low-Density
Residential, RE, R-2, and RMD Districts), 18.12 (R-1 Single-Family Residential
District), 18.13 (Multiple Family Residential, RM20, RM30, RM40), 18.16
(Commercial Districts, CN, CC, CS), 18.18 (Downtown Commercial, CD-C, CD-S,
CD-N), 18.40 (General Standards and Exceptions), and 18.42 (Standard for
Special Uses) of Title 18 (Zoning) and Adding Chapter 21.10 (Parcel Maps for
Urban Lot Splits) of the Palo Alto Municipal Code to Implement Recent State
Housing Bills
The Council of the City of Palo Alto ORDAINS as follows:
SECTION 1. Findings and declarations. The City Council finds and declares as follows:
A. On September 16, 2021, Governor Newsom signed into law Senate Bill 9 (SB 9), which
requires, among other things, that local agencies ministerially approve both two-unit
construction and urban lot splits on single-family zoned lots.
B. SB 9 authorizes the creation of lots as small as 1,200 square feet, and requires approval
of two residential units of at least 800 square feet (for a total of 1,600 square feet) each
on such lots. This represents a significant departure from existing minimum lot sizes
and development standards in Palo Alto’s single-family zones.
C. The increased density and intensity of development authorized by SB 9 has the potential
to negatively impact privacy, access for emergency vehicles, and aesthetics of
residential neighborhoods. In addition, the ministerial review required by SB 9 could
result in the unintentional loss of historic resources in Palo Alto’s single family zones.
D. SB 9 authorizes local jurisdictions to apply objective zoning standards, objective
subdivision standards, and objective design standards, subject to certain limitations in
statute.
E. On September 16, 2021, Governor Newsom signed into law Senate Bill 478 (SB 478),
which requires, among other things, that local agencies provide specified minimum floor
area ratios for housing development projects containing 3 to 10 dwelling units.
F. There is insufficient time for consideration of and recommendation on objective
standards related to SB 9, code amendments related to SB 478, and associated code
amendments to Title 18 by the Planning and Transportation Commission (PTC) prior to
action by the City Council. The Council therefore declares that an interim ordinance,
pursuant to Palo Alto Municipal Code (PAMC) Section 18.80.090 is an appropriate
*NOT YET ADOPTED*
2
0160062_20211222_ay16
measure to adopt standards, pending consideration of a permanent ordinance by the
PTC.
SECTION 2. Section 18.10.020 (Applicable Regulations) of Chapter 18.10 (Low-Density
Residential (RE, R-2 and RMD) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is
amended to read as follows (new text underlined and deletions struck-through):
18.10.020 Applicable Regulations
The specific regulations of this chapter and the additional regulations and procedures
established by Chapters 18.52 to 18.80 inclusive shall apply to all low-density residential
districts. Such regulations shall apply to construction of two units on an RE-zoned lot pursuant
to California Government Code Section 65852.21 (SB 9, 2021), except as modified by Section
18.42.180.
SECTION 3. Section 18.10.030 (Land Uses) of Chapter 18.10 (Low-Density Residential (RE, R-2
and RMD) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as
follows (new text underlined and deletions struck-through; omissions are noted with [. . .] for
large sections of unchanged text):
18.10.030 Land Uses
Table 1 shows the permitted and conditionally permitted uses for the low-density residential
districts.
TABLE 1
PERMITTED AND CONDITIONALLY PERMITTED LOW-DENSITY RESIDENTIAL USES
[P = Permitted Use -- CUP = Conditional Use Permit Required]
RE R-2 RMD Subject to
Regulations in:
[. . .] [. . .] [. . .] [. . .] [. . .]
RESIDENTIAL USES
Single-Family P P P
Two-Family use, under one ownership P (4) P P
Mobile Homes P P P 18.42.100
Residential Care Homes P P P
[. . .] [. . .] [. . .] [. . .] [. . .]
P = Permitted Use CUP = Conditional Use Permit
Required
*NOT YET ADOPTED*
3
0160062_20211222_ay16
Footnotes:
(1) Sale of Agricultural Products: No permanent commercial structures for the sale or
processing of agricultural products are permitted.
(2) Accessory Dwelling Units in R-2 and RMD Zones: An accessory dwelling unit or a Junior
Accessory Dwelling Unit associated with a single-family residence on a lot in the R-2 or RMD
zones is permitted, subject to the provisions of Section 18.42.040, and such that no more than
two units result on the lot.
(3) Bed and Breakfast Inns: Bed and breakfast inns are limited to no more than 4 units
(including the owner/resident's unit) in the RMD district.
(4) Two Unit Development Pursuant to California Government Code Section 65852.21 (SB 9,
2021): Construction of two units is permitted on an RE-zoned lot, subject to the regulations in
Section 18.42.180.
SECTION 4. Section 18.10.040 (Development Standards) of Chapter 18.10 (Low-Density
Residential (RE, R-2 and RMD) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is
amended to read as follows (new text underlined and deletions struck-through; omissions are
noted with [. . .] for large sections of unchanged text):
18.10.040 Development Standards
(a) Site Specifications, Building Size, Height and Bulk, and Residential Density
The development standards for the low-density residential districts are shown in Table 2:
TABLE 2
LOW-DENSITY RESIDENTIAL DEVELOPMENT STANDARDS R-E (6) R-2 RMD Subject to
Regulations in:
[. . .] [. . .] [. . .] [. . .] [. . .]
Footnotes:
(1) Minimum Lot Size: Any lot less than the minimum lot size may be used in accordance
with the provisions of Chapter 18.40.
(2) R-2 Floodzone Heights: Provided, in a special flood hazard area as defined in Chapter
16.52, the maximum heights are increased by one-half of the increase in elevation required to
reach base flood elevation, up to a maximum building height of 33 feet.
(3) R-2 Floodzone Daylight Plane: Provided, if the site is in a special flood hazard area and
is entitled to an increase in the maximum height, the heights for the daylight planes shall be
adjusted by the same amount.
(4) Exemption from Floor Area for Covered Parking Required for Two-Family Uses: In the
R-2 and RMD districts, for two-family uses, floor area limits may be exceeded by a maximum
of two hundred square feet, for purposes of providing one required covered parking space.
(5) Maximum House Size: The gross floor area of attached garages and attached accessory
dwelling units and junior accessory dwelling units are included in the calculation of maximum
*NOT YET ADOPTED*
4
0160062_20211222_ay16
house size. If there is no garage attached to the house, then the square footage of one
detached covered parking space shall be included in the calculation. This provision applies
only to single-family residences, not to duplexes allowed in the R-2 and RMD districts.
(6) Two Unit Development Pursuant to California Government Code Section 65852.21 (SB
9, 2021): Construction of two units on an RE-zoned lot shall be subject to the development
standards in this Section 18.10.040, except as modified by Section 18.42.180.
[. . .]
SECTION 5. Table 3 (PARKING REQUIREMENTS FOR R-E, R-2 AND RMD USES) of Section
18.10.060 (Parking) of Chapter 18.10 (Low-Density Residential (RE, R-2 and RMD) Districts) of
Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (new text
underlined and deletions struck-through; omissions are noted with [. . .] for large sections of
unchanged text):
[. . .]
TABLE 3
PARKING REQUIREMENTS FOR R-E, R-2 AND RMD USES
Use Minimum Off-Street Parking Requirement
Single-family residential use (excluding
accessory dwelling units)
2 spaces per unit, of which one must be covered.
Two family in the RE district, pursuant to
California Government Code Section
65852.21 (SB 9, 2021)
1 space per unit. No spaces required if located
within one-half mile walking distance of either a
high-quality transit corridor or a major transit stop,
or located within one block of a car share vehicle.
Two family (R2 & RMD districts) 3 spaces total, of which at least two must be
covered
Accessory dwelling unit, attached or
detached:
No parking required
Junior accessory dwelling unit No parking required
Other Uses See Chapter 18.40
[. . .]
SECTION 6. Section 18.10.070 (Accessory and Junior Accessory Dwelling Units) of Chapter
18.10 (Low-Density Residential (RE, R-2 and RMD) Districts) of Title 18 (Zoning) of the Palo Alto
Municipal Code is amended to read as follows (new text underlined and deletions struck-
through):
*NOT YET ADOPTED*
5
0160062_20211222_ay16
18.10.070 Accessory and Junior Accessory Dwelling Units
Accessory Dwelling Units and Junior Accessory Dwelling Units are subject to the regulations
set forth in Chapter 18.09 Section 18.42.040.
SECTION 7. Section 18.12.020 (Applicable Regulations) of Chapter 18.12 (R-1 Single Family
Residential District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as
follows (new text underlined and deletions struck-through):
18.12.020 Applicable Regulations
The specific regulations of this chapter and the additional regulations and procedures
established by Chapters 18.52 to 18.80 inclusive shall apply to the R-1 district including the R-1
subdistricts. Such regulations shall apply to construction of two units on an R1-zoned lot
pursuant to California Government Code Section 65852.21 (SB 9), except as modified by Section
18.42.180.
SECTION 8. Section 18.12.030 (Land Uses) of Chapter 18.12 (R-1 Single Family Residential
District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (new
text underlined and deletions struck-through; omissions are noted with [. . .] for large sections
of unchanged text):
18.12.030 Land Uses
The permitted and conditionally permitted uses for the single family residential districts are
shown in Table 1:
Table 1
PERMITTED AND CONDITIONAL R-1 RESIDENTIAL USES
R-1 and all R-1
Subdistricts
Subject to
Regulations in:
[. . .] [. . .] [. . .]
RESIDENTIAL USES
Single-Family P
Two-Family use, under one ownership P 18.42.180
Mobile Homes P 18.42.100
Residential Care Homes P
[. . .] [. . .] [. . .]
P = Permitted Use CUP = Conditional Use Permit Required
*NOT YET ADOPTED*
6
0160062_20211222_ay16
SECTION 9. Section 18.12.040 (Site Development Standards) of Chapter 18.12 (R-1 Single
Family Residential District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to
read as follows (new text underlined and deletions struck-through; omissions are noted with [. .
.] for large sections of unchanged text):
18.12.040 Site Development Standards
(a) Site Specifications, Building Size, Height and Bulk, and Residential Density
The development standards for the R-1 district and the R-1 subdistricts are shown in Table 2,
except to the extend such standards may be modified by Section 18.42.180 for two-family uses
pursuant to California Government Code Section 65852.21 (SB 9, 2021):
[. . .]
SECTION 10. Section 18.12.060 (Parking) of Chapter 18.12 (R-1 Single Family Residential
District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (new
text underlined and deletions struck-through; omissions are noted with [. . .] for large sections
of unchanged text):
18.12.060 Parking
Off-street parking and loading facilities shall be required for all permitted and conditional uses
in accord with Chapters 18.52 and 18.54 of this title. The following parking requirements apply
in the R- 1 districts. These requirements are included for reference purposes only, and in the
event of a conflict between this Section 18.12.060 and any requirement of
Chapters 18.52 and 18.54, Chapters 18.52 and 18.54 shall apply, except in the case of parcels
created pursuant to Section 18.10.140(c) (subdivision incentive for historic preservation).
(a) Parking Requirements for Specific Uses
Table 4 shows the minimum off-street automobile parking requirements for specific uses
within the R-1 district.
Table 4
Parking Requirements for Specific R-1 Uses
Use Minimum Off-Street Parking Requirement
Single-family residential use
(excluding accessory dwelling units)
2 spaces per unit, of which one must be covered.
Two family use pursuant to
California Government Code Section
65852.21 (SB 9, 2021)
1 space per unit. No spaces required if located
within one-half mile walking distance of either a
high-quality transit corridor or a major transit stop,
or located within one block of a car share vehicle.
*NOT YET ADOPTED*
7
0160062_20211222_ay16
Accessory dwelling unit, attached or
detached
No parking required
Junior accessory dwelling unit No parking required
Other Uses See Chs. 18.52 and 18.54
[. . .]
SECTION 11. Section 18.12.070 (Accessory and Junior Accessory Dwelling Units) of Chapter
18.12 (R-1 Single Family Residential District) of Title 18 (Zoning) of the Palo Alto Municipal Code
is amended to read as follows (new text underlined and deletions struck-through):
18.12.070 Accessory and Junior Accessory Dwelling Units
Accessory Dwelling Units and Junior Accessory Dwelling Units are subject to the regulations
set forth in Chapter 18.09 Section 18.42.040.
SECTION 12. Section 18.40.160 (Replacement Project or Discretionary Review Required) of
Chapter 18.40 (General Standards and Exceptions) of Title 18 (Zoning) of the Palo Alto
Municipal Code is amended to read as follows (new text underlined and deletions struck-
through):
18.40.160 Replacement Project or Discretionary Review Required
(a) No permit required under Title 2 (Administrative Code), Title 12 (Public Works and
Utilities), or Title 16 (Building Regulations) shall be issued for demolition or deconstruction of a
single family residence or duplex in the Low-Density Residential District (Chapter 18.10) or
Single Family Residential District (Chapter 18.12), except for deconstruction pursuant to
Section 16.14.130 or where necessary for health and safety purposes (as determined by the
City's Building Official), unless building permit plans for a replacement project have been
approved. This subsection shall also apply to demolition of a single family residence or duplex in
the Multiple Family Residential District (Chapter 18.13) when the replacement project does not
require discretionary review.
(b) No permit required under Title 2 (Administrative Code), Title 12 (Public Works and
Utilities), or Title 16 (Building Regulations) shall be issued for any project requiring discretionary
review under Title 18 or Title 21, unless the application for discretionary review has been
approved.
SECTION 13. Section 18.52.020 (Definitions) of Chapter 18.52 (Parking and Loading
Requirements) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows
(new text underlined and deletions struck-through; omissions are noted with [. . .] for large
sections of unchanged text):
*NOT YET ADOPTED*
8
0160062_20211222_ay16
18.52.020 Definitions
For purposes of this chapter:
[. . .]
(h) “Within one block of a car share vehicle” means within 600 feet of a parking space
permanently reserved for use by a car share vehicle.
(h)(i) Definitions for other parking-related terms can be found in Section 18.04.030(a)
(Definitions), including “Parking as a principal use,” “Parking facility,” and “Parking
space.”
SECTION 14. Table 1 (Minimum Off-Street Parking Requirements of Section 18.52.040 (Off-
Street Parking, Loading, and Bicycle Facility Requirements) of Chapter 18.52 (Parking and
Loading Requirements) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read
as follows (new text underlined and deletions struck-through; omissions are noted with [. . .] for
large sections of unchanged text):
18.52.040 Off-Street Parking, Loading and Bicycle Facility Requirements
[. . .]
Table 1
Minimum Off-Street Parking Requirements
Use Vehicle Parking Requirement
(# of spaces)
Bicycle Parking Requirement
Spaces Class 1 Long
Term (LT) and
Short Term (ST)
RESIDENTIAL USES
[. . .] [. . .] [. . .] [. . .]
Two-Family
Residential
(R-2 & RMD Districts)
1.5 spaces per unit, of which at least
one space per unit must be covered
Tandem Parking Allowed, with one
tandem space per unit, associated
directly with another parking space
for the same unit
1 space per
unit
100% - LT
(R-1 and RE Districts,
pursuant to Section
18.42.180)
At least one space per unit. No
spaces required if the unit is located
within one-half mile walking
distance of either a high-quality
transit corridor or a major transit
1 space per
unit
100% - LT
*NOT YET ADOPTED*
9
0160062_20211222_ay16
stop, as defined in California Public
Resources Code Sections 21155 and
21064.3 respectively, or located
within one block of a car share
vehicle.
[. . .] [. . .] [. . .] [. . .]
[. . .]
SECTION 15. Section 18.42.180 (Interim Standards for Two Units on Single Family Zoned Lots
Pursuant to Senate Bill 9) of Chapter 18.42 (Standards for Special Uses) of Title 18 (Zoning) of
the Palo Alto Municipal Code is added to read as follows:
18.42.180 Interim Standards for Two Units on Single Family Zoned Lots Pursuant to Senate
Bill 9.
(a) Purpose. This section sets forth special regulations applicable to the construction of two
dwelling units on single family lots in the R-1 (and R-1 subdistricts) and R-E zone districts,
pursuant to California Government Code Sections 65852.21 and 66411.7 (SB 9, 2021). In the
event of a conflict between the provisions of this section and the generally applicable
regulations of Chapters 18.10, 18.12, and 18.52-18.80, inclusive, the provisions of this section
shall prevail.
(b) Definitions. As used in this section:
(1) “Specific, adverse impact” means a significant, quantifiable, direct, and
unavoidable impact, based on objective, identified written public health or
safety or physical environmental standards, policies, or conditions as they
existed on the date the application was deemed complete. Inconsistency with
the zoning ordinance or general plan land use designation shall not constitute a
specific, adverse, impact.
(2) “Sufficient to allow separate conveyance” means the two dwelling units
constitute clearly defined, separate, and independent housekeeping units
without interior access points to the other dwelling unit.
(3) “Two dwelling units” means the development proposes two new units on a
vacant lot or proposes to add one new unit to one existing unit on a lot. This
does not include the development of a single dwelling unit on a vacant lot.
(4) “Unit” means any dwelling unit, including, but not limited to a primary dwelling
unit, an accessory dwelling unit, or a junior accessory dwelling unit.
(c) Applicability. When an application is submitted that includes both (1) the construction
of two dwelling units under this section and (2) other redevelopment work that is not integral
to creation of a new dwelling unit and would generally require discretionary review, only the
*NOT YET ADOPTED*
10
0160062_20211222_ay16
portions required for construction of dwelling units shall be reviewed ministerially. In addition,
this section shall not apply in any of the following circumstances:
(1) Parcels described California Government Code Section 65913.4, subdivisions
(a)(6)(B) through (a)(6)(K) inclusive. Such parcels include, for example, parcels
located in wetlands, in very high fire severity zones (unless the site has adopted
certain fire hazard mitigation measures), and in special flood hazard areas or
regulatory floodways (unless the site meets certain federal requirements for
development).
(2) Parcels on which an owner of residential real property has exercised the owner’s
rights under state law to withdraw accommodations from rent or lease within
the past 15 years.
(3) The development would require alteration or demolition of any of the following
types of housing
(A) Housing that is subject to a recorded covenant, ordinance, or law that
restricts rents to levels affordable to persons and families of moderate,
low, or very low income.
(B) Housing that is subject to any form of rent or price control through a
public entity’s valid exercise of its police power.
(C) Housing that has been occupied by a tenant in the last three years.
(4) The development would result in the demolition of more than 25 percent of the
existing exterior structural walls of a site that has been occupied by a tenant in
the last three years.
(5) The development is located within a historic district or property included on the
State Historic Resources Inventory, as defined in California Public Resources
Code Section 5020.1, or within a site that is designated or listed on the City’s
historic inventory.
(6) The building official finds that the development would have a specific, adverse
impact on public health and safety or the physical environment that cannot be
feasibly mitigated or avoided.
(d) Application Process.
(1) The Director is authorized to promulgate regulations, forms, and/or checklists
setting forth application requirements for the development of dwelling units
under this section.
(2) The City shall ministerially approve or disapprove an application pursuant to this
section.
(e) Development Standards.
(1) A project proposing two dwelling units on a parcel in the R-1 or RE districts shall
be subject to the development standards set forth in Chapters 18.12 and 18.10,
respectively except as provided herein.
(2) All construction pursuant to this section shall comply with objective design
standards adopted by the City Council. However, an applicant seeking to deviate
from the objective design standards (except to the extent necessary to construct
*NOT YET ADOPTED*
11
0160062_20211222_ay16
a unit of 800 square feet) may elect to submit an application under the base
requirements of Chapters 18.10, or 18.12, including, if applicable, Single Family
Individual Review.
(3) If the application of any development standard or design standard would
necessarily require that one or more proposed units be less than 800 square
feet, such standard shall be relaxed to the minimum extent necessary to allow
construction of a unit or units of at least 800 square feet. The Director may
publish regulations governing the order in which objective standards shall be
waived or relaxed in such circumstances.
(4) Setbacks from side and rear property lines, including street-side property lines,
shall be no less than four feet, except in the case of existing non-complying
structures or structures reconstructed in the same location and to the same
dimensions as an existing structure, in which case existing setbacks less than four
feet may be maintained.
(5) Off-street parking shall be provided pursuant to Chapters 18.52 and 18.54.
(6) In the event that a project is proposed on a site that has been subject to an
Urban Lot Split under Chapter 21.10, and the project would result in three or
more detached units across the two parcels created by the urban lot split, any
new units shall not exceed 800 square feet.
(7) Accessory structures, such as garages and shed are permitted consistent with the
provisions of the zoning district; however, no accessory structure shall have a
floor area exceeding 500 square feet.
(f) General Requirements.
(1) A maximum of two units may be located on any parcel that is created by an
Urban Lot Split under Chapter 21.10. Accessory dwelling units and junior
accessory dwelling units shall not be permitted on any such parcel already
containing two units.
(2) On parcels that are not the result of an Urban Lot Split under Chapter 21.10,
accessory dwelling units may be proposed in addition to the primary dwelling
unit or units, consistent with Chapter 18.09, provided, however, that ADUs
associated with projects proceeding under this Section shall not receive any
exemption from Floor Area Ratio except to the minimum extent required by
California Government Code Section 65852.2.
(3) A rental of any unit created pursuant to this Section shall be for a term longer
than 30 consecutive days.
(4) For residential units connected to an onsite wastewater treatment system, a
percolation test completed within the last 5 years, or, if the percolation test has
been recertified, within the last 10 years.
(5) Each unit shall have a permanent street address.
(6) The owner and all successors in interest in the subject property shall agree to
participate in any City survey of properties that have constructed dwelling units
pursuant to this Section.
*NOT YET ADOPTED*
12
0160062_20211222_ay16
(g) Effective Dates. This section shall remain in effect until such time as Government Code
Section 65852.21 is repealed or superseded or its requirements for ministerial approval of no
more than two units on a single family zoned lot are materially amended, whether by
legislation or initiative, at which time this section shall become null and void.
SECTION 16. Chapter 21.10 (Urban Lot Splits) of Title 21 (Subdivisions and Other Divisions of
land) of the Palo Alto Municipal Code is added to read as follows:
Chapter 21.10
PARCEL MAPS FOR URBAN LOT SPLITS IN SINGLE-FAMILY ZONES
Section 21.10.010 Purpose
Section 21.10.020 Definitions
Section 21.10.030 Applicability
Section 21.10.040 General Requirements
Section 21.10.050 Application and Review of an Urban Lot Split
Section 21.10.060 Effective dates
Section 21.10.010 Purpose
This chapter sets forth special regulations applicable to the subdivision of a single family lot in
the R-1 district (and R-1 subdistricts) or R-E district into two new lots, pursuant to California
Government Code Section 66411.7 (SB 9, 2021).
Section 21.10.020 Definitions
As used in this chapter:
(a) “Acting in concert” means pursuing a shared goal to split adjacent lots pursuant to an
agreement or understanding, whether formal or informal.
(b) “Specific, adverse impact” means a significant, quantifiable, direct, and unavoidable
impact, based on objective, identified written public health or safety or physical
environmental standards, policies, or conditions as they existed on the date the
application was deemed complete. Inconsistency with the zoning ordinance or general
plan land use designation shall not constitute a specific, adverse, impact.
(c) “Unit” means any dwelling unit, including, but not limited to, a unit or units created
pursuant to Section 18.42.180, a primary dwelling unit, an accessory dwelling unit, or a
junior accessory dwelling unit.
(d) “Urban Lot Split” means the subdivision of an existing legal parcel in the R-1 district (and
R-1 subdistricts) or R-E district to create no more than two new parcels of approximately
equal area, pursuant to this Chapter and California Government Code Section 66411.7.
Section 21.10.030 Applicability
The provisions of this chapter shall apply only to lots in the R-1 district (and R-1 subdistricts) or
R-E zone district. An Urban Lot Split is not available in any of the following circumstances:
*NOT YET ADOPTED*
13
0160062_20211222_ay16
(a) A parcel described California Government Code Section 65913.4, subdivisions (a)(6)(B)
through (a)(6)(K) inclusive. Such parcels include, for example, parcels located in
wetlands, in very high fire severity zones (unless the site has adopted certain fire hazard
mitigation measures), and in special flood hazard areas or regulatory floodways (unless
the site meets certain federal requirements for development).
(b) A parcel on which an owner of residential real property has exercised the owner’s rights
under state law to withdraw accommodations from rent or lease within the past 15
years.
(c) A parcel that was created by prior exercise of an Urban Lot Split.
(d) A parcel adjacent to a parcel that was created by prior exercise of an Urban Lot Split by
the owner, or a person acting in concert with the owner of the parcel sought to be split.
(e) The Urban Lot Split would require alteration or demolition of any of the following types
of housing
(1) Housing that is subject to a recorded covenant, ordinance, or law that restricts
rents to levels affordable to persons and families of moderate, low, or very low
income.
(2) Housing that is subject to any form of rent or price control through a public
entity’s valid exercise of its police power.
(3) Housing that has been occupied by a tenant in the last three years.
(f) The Urban Lot Split is located within a historic district or property included on the State
Historic Resources Inventory, as defined in California Public Resources Code Section
5020.1, or within a site that is designated or listed on the City’s historic inventory.
(g) The building official finds that the development would have a specific, adverse impact
on public health and safety or the physical environment that cannot be feasibly
mitigated or avoided.
Section 21.10.040 General Requirements
(a) The minimum size for a parcel created by an Urban Lot Split is 1,200 square feet.
(b) The lots created by an Urban Lot Split must be of approximately equal area, such that no
resulting parcel shall be smaller than 40 percent of the lot area of the original parcel
proposed for subdivision.
(c) Each parcel created by an Urban Lot Split shall adjoin the public right of way by means
of a minimum fifteen foot street frontage.
(d) Where existing dwelling units on the property are to remain, no lot line may be created
under this Chapter in a manner that would bisect any structure or that would result in
more than two dwelling units on any resulting parcel.
(e) Newly created lot lines shall not render an existing structure noncomplying in any
respect (e.g. floor area ratio, lot coverage, parking), nor increase the degree of
noncompliance of an existing noncompliant structure.
(f) Each parcel shall comply with any objective lot design standards for Urban Lot Splits
adopted by the City Council.
(g) The Director of Planning shall determine the appropriate fee required for an application
for parcel map for an Urban Lot Split, which may be the fee currently established for a
Preliminary Parcel Map or Parcel Map.
*NOT YET ADOPTED*
14
0160062_20211222_ay16
Section 21.10.050 Application and Review of an Urban Lot Split
(a) The director of planning is authorized to promulgate regulations, forms, and/or
checklists setting forth application requirements for a parcel map for an Urban Lot Split
under this Chapter. An application shall include an affidavit from the property owner,
signed under penalty of perjury under the laws of California, that:
(1) The proposed urban lot split would not require or authorize demolition or
alteration of any of the housing described in Section 21.10.030, subdivision (e).
(2) The proposed urban lot split is not on a parcel described in Section 21.10.030.
(3) The owner intends to occupy one of the housing units located on a lot created by
the parcel map as their principal residence for a minimum of three years from
the date of the recording of the parcel map.
(4) The rental of any unit on the property shall be for a term longer than 30
consecutive days.
(5) The resulting lots will be for residential uses only.
(b) A parcel map for an Urban Lot Split must be prepared by a registered civil engineer or
licensed land surveyor in accordance with Government Code sections 66444 – 66450
and this Chapter. Unless more specific regulations are adopted by the director of
planning, the parcel map shall be in the form and include all of the information required
of a Preliminary Parcel Map by Chapter 21.12, as well as any additional information
required of a Parcel Map by Chapter 21.16. In addition, the face of the Parcel Map shall
contain a declaration that:
(1) Each lot created by the parcel map shall be used solely for residential dwellings.
(2) That no more than two dwelling units may be permitted on each lot.
(3) That rental of any dwelling unit on a lot created by the parcel map shall be for a
term longer than 30 consecutive days.
(4) A lot created by a parcel map under this Chapter shall not be further subdivided.
(c) Upon receipt of a parcel map for an Urban Lot Split, the director of planning shall
transmit copies to the city engineer, chief building official, director of utilities, chief of
police, fire chief, director of transportation, and such other departments of the city, and
any other agencies, as may be required by law or deemed appropriate.
(d) The director of planning shall cause a notice of the pending application to be posted at
the site of the proposed Urban Lot Split and for notice to be mailed to owners and
residents of property within 600 feet of the property.
(e) The director of planning shall ministerially review and approve a parcel map for Urban
Lot Split if they determine that the parcel map application meets all requirements of this
Chapter. The director of planning shall deny a parcel map application that does not
meet any requirement of this Chapter.
Section 21.10.060 Effective Dates.
This chapter shall remain in effect until such time as Government Code Section 66411.7 is
repealed or superseded or its requirements for ministerial approval of an Urban Lot Split on a
*NOT YET ADOPTED*
15
0160062_20211222_ay16
single family zoned lot are materially amended, whether by legislation or initiative, at which
time this chapter shall become null and void.
SECTION 17. Section 18.13.040 (Development Standards) of Chapter 18.13 (Multiple Family
Residential (RM-20, RM-30 and RM-40) Districts) of Title 18 (Zoning) of the Palo Alto Municipal
Code is amended to read as follows (new text underlined and deletions struck-through;
omissions are noted with [. . .] for large sections of unchanged text):
18.13.040 Development Standards
(a) Site Specifications, Building Size and Bulk, and Residential Density
[. . .]
Table 2
Multiple Family Residential Development Table
RM-20 RM-30 RM-40 Subject to
regulations in:
[. . .] [. . .] [. . .] [. . .] [. . .]
Maximum Floor
Area Ratio
(FAR)(4)
0.5:1 0.6:1 1.0:1 18.13.045
[. . .] [. . .] [. . .] [. . .] [. . .]
SECTION 18. Section 18.13.045 (Increased Floor Area for Housing Developments of 3-10 Units)
of Chapter 18.13 (Multiple Family Residential (RM-20, RM-30 and RM-40) Districts) of Title 18
(Zoning) of the Palo Alto Municipal Code is added to read as follows:
18.13.045 Increased Floor Area for Housing Developments of 3-10 Units
(a) A housing development project, as defined in California Government Code Section
65589.5, that is in an RM-20, RM-30 or RM-40 District shall be allowed to increase its
floor area ratio as follows:
(i) A housing development project of three to seven units shall have a maximum floor
area ratio of 1.0:1.
(ii) A housing development project of eight to ten units shall have a maximum floor
area ratio of 1.25:1.
(b) This section shall not apply within a historic district or property included on the State
Historic Resources Inventory, as defined in California Public Resources Code Section
5020.1, or within a site that is designated or listed on the City’s historic inventory.
*NOT YET ADOPTED*
16
0160062_20211222_ay16
SECTION 19. Section 18.16.060 (Development Standards) of Chapter 18.16 (Neighborhood,
Community, and Service Commercial (CN, CC and CS)) of Title 18 (Zoning) of the Palo Alto
Municipal Code is amended to read as follows (new text underlined and deletions struck-
through; omissions are noted with [. . .] for large sections of unchanged text):
(a) Exclusively Non-Residential Uses
[. . .]
(b) Mixed Use and Residential
Table 4 specifies the development standards for new residential mixed use developments and
residential developments. These developments shall be designed and constructed in
compliance with the following requirements and the context-based design criteria outlined in
Section 18.16.090, provided that more restrictive regulations may be recommended by the
architectural review board and approved by the director of planning and development services,
pursuant to Section 18.76.020.
Table 4
Mixed Use and Residential Development Standards
CN CC CC(2) CS Subject to
regulations in
Section
[. . .] [. . .] [. . .] [. . .] [. . .] [. . .]
Maximum
Residential
Floor Area
Ratio (FAR)
0.5:1 (4) See sub-
section (e)
below
0.6:1 0.6:1 18.16.065
Maximum
Nonresidential
Floor Area
Ratio (FAR)
0.4:1 2.0:1 0.4:1
Total Mixed
Use Floor Area
Ratio (FAR)
0.9:1 (4) 2.0:1 1.0:1 18.16.065
[. . .] [. . .] [. . .] [. . .] [. . .] [. . .]
[. . .]
SECTION 20. Section 18.16.065 (Increased Floor Area for Housing Developments of 3-10 Units)
of Chapter 18.16 (Neighborhood, Community, and Service Commercial (CN, CC and CS)) of Title
18 (Zoning) of the Palo Alto Municipal Code is added to read as follows:
*NOT YET ADOPTED*
17
0160062_20211222_ay16
18.16.065 Increased Floor Area for Housing Developments of 3-10 Units
(a) A housing development project as defined in paragraph (2) of subdivision (h) of Section
65589.5 of the Government Code of the State of California that is in a CN, CC or CS
District shall be allowed to increase its floor area ratio as follows:
(i) A housing development project of three to seven units shall have a maximum
floor area ratio of 1.0:1.
(ii) A housing development project of eight to ten units shall have a maximum floor
area ratio of 1.25:1.
(b) This bonus shall not apply within a historic district or property included on the State
Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code
of the State of California, or within a site that is designated or listed as a city or county
landmark or historic property or district pursuant to a city or county ordinance.
(c) For mixed use development, total mixed use floor area ratio shall be increased to the
extent necessary to accommodate a non-residential floor area ratio of 0.4:1 for retail
and retail-like uses only.
SECTION 21. Section 18.18.060 (Development Standards) of Chapter 18.18 (Downtown
Commercial (CD) District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to
read as follows (new text underlined and deletions struck-through; omissions are noted with [. .
.] for large sections of unchanged text):
(a) Exclusively Non-Residential Use
[. . .]
(b) Mixed Use and Residential
Table 3 specifies the development standards for new residential mixed use developments and
residential developments. These developments shall be designed and constructed in
compliance with the following requirements and the context-based design criteria outlines in
Section 18.18.110, provided that more restrictive regulations may be recommended by the
architectural review board and approved by the director of planning and development services,
pursuant to Section 18.76.020:
TABLE 3
MIXED USE AND RESIDENTIAL DEVELOPMENT STANDARDS
CD-C CD-S CD-N Subject to
regulations in
Section:
[. . .] [. . .] [. . .] [. . .] [. . .]
Maximum Residential
Floor Area Ratio (FAR)
1.0:1(3) 0.6:1(3) 0.5:1(3) 18.18.065,
18.18.070
*NOT YET ADOPTED*
18
0160062_20211222_ay16
Maximum Nonresidential
Floor Area Ratio (FAR)
1.0:1(3) 0.4:1 0.4:1
Total Floor Area Ratio
(FAR)(3)
2.0:1(3) 1.0:1(3) 0.9:1(3) 18.18.065,
18.18.070
[. . .] [. . .] [. . .] [. . .] [. . .]
Footnotes:
(1) Required usable open space: (1) may be any combination of private and common open
spaces; (2) does not need to be located on the ground (but rooftop gardens are not
included as open space except as provided below); (3) minimum private open space
dimension 6; and (4) minimum common open space dimension 12
For CN and CS sites on El Camino Real, CS sites on San Antonio Road between Middlefield
Road and East Charleston Road and CC(2) sites that do not abut a single- or two-family
residential use or zoning district, rooftop gardens may qualify as usable open space and
may count as up to 60% of the required usable open space for the residential component
of a project. In order to qualify as usable open space, the rooftop garden shall meet the
requirements set forth in Section 18.40.230.
[. . .]
(3) FAR may be increased with transfers of development, increased floor area for housing
development projects with 3-10 residential units and/or bonuses for seismic and historic
rehabilitation upgrades, not to exceed a total site FAR of 3.0:1 in the CD-C subdistrict or
2.0:1 in the CD-S or CD-N subdistrict.
[. . .]
(5) The weighted average residential unit size shall be calculated by dividing the sum of the
square footage of all units by the number of units. For example, a project with ten 800-
square foot 1-bedroom units, eight 1,200-square foot 2-bedroom units, and two 1,800-
square foot 3-bedroom units would have a weighted average residential unit size of
((10x800)+(8x1,200)+(2x1,800)) ÷ (10+8+2) = 1,060 square feet.
[. . .]
SECTION 22. Section 18.18.065 (Increased Floor Area for Housing Developments of 3-10 Units)
of Chapter 18.18 (Downtown Commercial (CD) District) of Title 18 (Zoning) of the Palo Alto
Municipal Code is added to read as follows:
18.16.065 Increased Floor Area for Housing Developments of 3-10 Units
(a) A housing development project as defined in paragraph (2) of subdivision (h) of Section
65589.5 of the Government Code of the State of California that is in a CD Districts shall
be allowed to increase its floor area ratio as follows:
(i) A housing development project of three to seven units shall have a maximum
residential floor area ratio of 1.0:1.
(ii) A housing development project of eight to ten units shall have a maximum
residential floor area ratio of 1.25:1.
*NOT YET ADOPTED*
19
0160062_20211222_ay16
(b) This bonus shall not apply within a historic district or property included on the State
Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code
of the State of California, or within a site that is designated or listed as a city or county
landmark or historic property or district pursuant to a city or county ordinance.
(c) For mixed use development in the CD-N and CD-S subdistricts, total floor area ratio shall
be increased to the extent necessary to accommodate a non-residential floor area ratio
of 0.4:1 for retail and retail-like uses only.
(d) In no event shall total floor area ratio exceed 3.0:1 in the CD-C subdistrict, or 2.0:1 in the
CD-N and CD-S subdistricts.
SECTION 23. Section 16.65.025 (Exemptions) of Chapter 16.65 (Citywide Affordable Housing
Requirements) of Title 16 (Building Regulations) of the Palo Alto Municipal Code is amended to
read as follows (new text underlined and deletions struck-through; omissions are noted with [. .
.] for large sections of unchanged text):
16.65.025 Exemptions.
The following development projects are exempt from the provisions of this chapter:
(a) Residential projects consisting of the construction of one or two units, other than
accessory dwelling units and junior accessory dwelling units, unless: (1) included in a
mixed use project, (2) constructed on a lot created by an Urban Lot Split under Chapter
21.10; or (3) resulting in a two-family use on a single-family zoned lot;
(b) Accessory dwelling units, unless: (1) constructed on a lot created by an Urban Lot Split
under Chapter 21.10; or (2) the accessory dwelling unit is constructed on a single-family
zoned lot containing a two-family use;
(c) Junior accessory dwelling units and, notwithstanding subsection (b), all accessory
dwelling units less than 750 square feet;
[. . .]
SECTION 24. If any section, subsection, clause or phrase of this Ordinance is for any reason held
to be invalid, such decision shall not affect the validity of the remaining portion or sections of the
Ordinance. The Council hereby declares that it should have adopted the Ordinance and each
section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid.
SECTION 25. The City Council finds that this Ordinance is statutorily exempt from the
requirements of the California Environmental Quality Act (CEQA) for the following reasons. Under
Government Code Sections 66411.7(n) and 65852.21(j), an ordinance adopted to implement the
requirements of SB 9 shall not be considered a project under CEQA. Additional sections of this
ordinance implementing SB 478 are exempt pursuant to Section 15061 of the State CEQA
Guidelines because they simply reflect pre-emptive state law that will be effective January 1,
*NOT YET ADOPTED*
20
0160062_20211222_ay16
2022. As such, this ordinance does not reflect a change from the status quo and it therefore can
be seen with certainty that there is no possibility that the ordinance will have a significant effect
on the environment.
SECTION 26. This ordinance shall be effective on the thirty-first day after the date of its adoption.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Assistant City Attorney City Manager
____________________________
Director of Planning
and Development Services