HomeMy WebLinkAboutStaff Report 2411-3793CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Tuesday, January 21, 2025
Council Chambers & Hybrid
5:30 PM
Agenda Item
8.FIRST READING: Adoption of an Ordinance Amending Title 18: Zoning Ordinance of the
Palo Alto Municipal Code (PAMC) to Implement Programs 1.5A (Stanford University
Lands), 3.6D (Expedited Project Review), 4.1A (Replacement Housing), and 6.5C-G
(Alternate Housing) of the Housing Element 2023-2031, and Title 21: Subdivision and
Other Divisions of Land to Incorporate Changes as Directed by Housing and Community
Development (HCD). CEQA Status – Revised Addendum to Comprehensive Plan EIR
approved November 2023 (SCH 2014052101). Title Updated, Staff Presentation
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: January 21, 2025
Report #:2411-3793
TITLE
FIRST READING: Adoption of an Ordinance Amending Title 18: Zoning Ordinance of the Palo
Alto Municipal Code (PAMC) to Implement Programs 1.5A (Stanford University Lands), 3.6D
(Expedited Project Review), 4.1A (Replacement Housing), and 6.5C-G (Alternate Housing) of the
Housing Element 2023-2031, and Title 21: Subdivision and Other Divisions of Land to
Incorporate Changes as Directed by Housing and Community Development (HCD).
Environmental Assessment: Impacts Revised Addendum to the Comprehensive Plan EIR,
approved November 2023 (SCH 2014052101).
RECOMMENDATION
Staff recommends the City Council adopt an ordinance amending PAMC Title 18 (Zoning
Ordinance) to implement components of the Housing Element Programs 1.5A (Stanford
University Lands), 3.6D (Expedited Project Review), 4.1A (Replacement Housing), and 6.5C-G
(Alternate Housing), and amending Title 21 (Subdivision and Other Divisions of Land) to
incorporate changes as directed by Housing and Community Development (HCD) related to
Senate Bill 9 implementation.
EXECUTIVE SUMMARY
The 2023-2031 Housing Element (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 implementation programs requiring amendments to the
Palo Alto Municipal Code (PAMC). These amendments were City Council Priority Objectives for
2024. The programs support the development of affordable housing, supportive housing, and
other multi-family housing opportunities.
The attached Draft Ordinance (Attachment A) amends PAMC Title 18 (Zoning) Sections:
•18.14.060 By Right Housing Projects (Neighborhood Commercial (NC), Community
Commercial (CC), Service Commercial (CS), Downtown Commercial (CD), Research,
Office, and Limited Manufacturing (ROLM), Research Park (RP), General Manufacturing
(GM), Public Facilities (PF), and Pedestrian and Transit Oriented Development (PTOD)
Districts.
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•18.20.030 Land Uses (Research Park (RP and RP (5) Districts),
•18.20.040 Site Development Standards (Research, Office, and Limited Manufacturing
(ROLM) District),
•18.28.020 Definitions,
•18.28.040 Land Uses (Open Space (OS) and Agricultural Conservation (AC) Districts,
•18.28.070 Additional Open Space (OS) District Regulations,
•18.28.080 Additional Agricultural Conservation (AC) District Design Requirements,
•18.40.160 Replacement Project or Discretionary Review Required, and
•18.77.070 Architectural Review Process.
The amendments are shown in underline/strikethrough. In aggregate, the amendments
implement the requirements of the Housing Element Programs listed in Attachment B: 1.5A
(Stanford University Lands), 3.6D (Expedited Project Review), 4.1A (Replacement Housing), and
6.5C-G (Alternate Housing).
The Draft Ordinance also includes amendments to Title 21 (Subdivisions and Other Divisions of
Land), Section 21.10.040 General Requirements and Chapter 18.24 (Standards for Special Uses),
to incorporate changes as directed by HCD to address an inconsistency within the City‘s Senate
Bill (SB) 9 regulations.
The Housing Element implementation timeframe for all program components included in the
proposed ordinance is January 2025, except Housing Element Program 6.5C Alternate Housing,
is required by the end of June 2025.
BACKGROUND
The State requires jurisdictions to prepare Housing Elements to include programs that would
encourage housing production and eliminate constraints to housing to meet the Regional
Housing Needs Allocation (RHNA).
On May 8, 2023, the City Council adopted Resolution No. 10107, approving an addendum to the
Comprehensive Plan Environmental Impact Report (EIR), making various findings, and adopting
the 2023-2031 Housing Element for the City of Palo Alto. The City Council approved a Revised
Addendum to the Comprehensive Plan EIR and adopted Ordinance No. 5608 on December 18,
2023, rezoning sites in the 2023-2031 Housing Element Sites Inventory to accommodate the
City’s RHNA.
On April 15, 2024, The City Council adopted a Revised Housing Element (Resolution No. 10155)
and authorized the Director of Planning and Development Services to take further actions
necessary to achieve certification of the Housing Element by HCD. HCD found that the Revised
2023-2031 Housing Element, as further modified on July 17, 2024, was substantially compliant
with the State law, certifying it on August 20, 2024.
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The Housing Element includes several programs outlined in Attachment B that require updates
to the municipal code. These include components of the following Housing Elements Programs:
1.5 (Stanford University Lands), 3.6 (Expedited Project Review), 4.1 (Replacement Housing), and
6.5 (Alternate Housing).
The Planning and Transportation Commission (PTC) reviewed the proposed changes to the
PAMC Titles 18 (Zoning Ordinance) and 21 (Subdivision and Other Divisions of Land) on
November 13, 20241, and unanimously recommended the proposed changes to the City Council
for adoption.
ANALYSIS
The Housing Element programs are organized into various categories based on their goals and
broader housing objectives and reflect on the City’s commitment to increasing housing supply,
enhancing housing affordability, and addressing housing needs comprehensively.
The amendments included in the Draft Ordinance (Attachment A) and outlined in this staff
report are intended to implement Housing Element Programs (Attachment B) that require
specific code amendments by January 2025. This is not an exhaustive list of ongoing Housing
Element implementation programs or those requiring amendments throughout the 2023-2031
period.
Housing Element Program 1.5: Stanford University Lands: Housing Element Program 1.5 aims
to establish a long-term policy framework for identifying additional housing sites on Stanford-
owned lands. Components 1.5B and 1.5C encourages the City to engage with Stanford
University, Simon Properties, and other stakeholders and identify additional housing
opportunities by December 31, 2025. The draft amendment to the PAMC would implement
Housing Element Program 1.5A.
Draft Zoning Text Amendment: The Conditional Use Permit restriction on multi-family
residential in the RP and RP (5) zones has been removed as directed by the Housing Element
Program 1.5A for most areas of the Research Park. The proposed change to the municipal code
does not include sites subject to the City’s Hazardous Materials Ordinance (PAMC Section
18.42.200) and continues a Conditional Use Permit requirement when housing is proposed
within 600 feet of a Tier 22 Hazardous Facility. Continuing with existing regulations, no housing
is allowed within 300 feet of a Tier 2 Hazardous Materials facility.
Housing Element Program 3.6: Expedited Project Review: Housing Element Program 3.6
outlines four implementation components to expedite the project review time. Components
3.6A (amending municipal code to exempt housing projects from ARB review to the extent they
1 https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13751
2 Uses with quantities of Toxic or Highly Toxic hazardous materials that are both above the threshold quantities in
Health and Safety Code Division 20, Chapter 6.95 and below the Title 19 thresholds of the California Code of
Regulations.
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comply with the City’s objective design standards) and 3.6C (formalizing the procedure to offer
no-cost pre-application consultation services for housing projects) have already been
completed and 3.6B (early ARB review) is underway. The draft amendment to the PAMC would
implement Housing Element Program 3.6D, which limits the number of hearings before the
Architectural Review Board for housing development projects, as defined in the Housing
Accountability Act.
Draft Zoning Text Amendment: The municipal code currently has a maximum of three hearing
limit unless additional reviews are requested by the applicant. The amendments to PAMC
Section 18.77.070 (c) and (d) (Architectural Review Process) limit the number of hearings for
housing projects before the Architectural Review Board (ARB) to a maximum of two meetings
unless additional meetings are requested by the applicant.
Housing Element Program 4.1: Replacement Housing: Development on non-vacant sites with
existing residential units must comply with specific State law(s) related to replacement
requirements. The City is currently enforcing these mandates, and the amendment to PAMC
codifies this practice and would implement Housing Element Program 4.1A.
Draft Zoning Text Amendment: PAMC Section 18.40.160 (Replacement Project or Discretionary
Review Required) has been amended to include new subsection (a)(3) to meet and exceed the
requirements of State law contained in the Housing Crisis Act of 2019 as amended by Assembly
Bill (AB) 1218. The proposed zoning amendment further reduces the potential for displacement
by requiring commercial project to replace all housing units demolished, even if they would not
be considered “protected units” under State law.
Housing Element Program 6.5: Alternate Housing: The purpose of Program 6.5 is to promote
alternative housing types such as large family units, single-room occupancy (SRO) units,
supportive and transitional housing, and managed living units or “micro-units” to serve
extremely-low-income households. Amendments to the PAMC would implement Housing
Element Programs 6.5 (C: Group Homes, D: Supportive Housing, E: Low Barrier Navigation
Centers, F: Emergency Shelters, and G: Farmworker Housing). Policy analysis on other
alternative housing types (Program 6.5 B) is anticipated to begin in 2025.
Draft Zoning Text Amendments:
Housing Element Programs 6.5 (C, D, and E)
•PAMC Section 18.14.060 (By Right Housing Projects) is added to allow the following
types of alternative housing:
o Group homes are housing units that are shared by unrelated persons with
disabilities that provide peer and other support for their residents’ disability
related needs and in which residents share cooking, dining, and living areas.
Group homes are required by the State to be treated as a by-right land use in
residential zones.
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o Low Barrier Navigation Centers are housing first, low barrier, temporary, service-
enriched shelters that help homeless individuals and families to quickly obtain
permanent housing. Low barrier navigation centers are required by the State to
be treated as a by-right use in zones where multi-family and mixed uses are
permitted, including nonresidential zones permitting multi-family uses, provided
the proposed project satisfies all the requirements of State law.
o The proposed ordinance now also adds subsections (a) and (b), which implement
SB 4 (2023 – Affordable Housing on Religious and Educational Institution Lands)
and AB 2162 (2018 – Supportive Housing). These subsections had been included
in a separate state-law implementation ordinance but have been shifted to this
ordinance based on timing considerations. Implementation of AB 2162
(subsection (b)) is also included in Housing Element Program 6.5D.
Housing Element Program 6.5 (F)
•PAMC Section 18.20.030 (d) (Land Uses Table 1 Industrial/ Manufacturing District Land
Uses) has been amended to ensure any proposed emergency shelter in the ROLM(E)
district is reviewed ministerially without a discretionary review.
•PAMC Section18.20.040(i) (Site Development Standards for Emergency Shelters for the
Homeless) has been amended to comply with the State’s parking requirements and the
building and site development standards for homeless and emergency shelters that
includes providing interior waiting space, office areas for staff, and screening refuse
area from view.
Housing Element Program 6.5 (G)
•PAMC Sections 18.28.020 (Definitions), 18.28.040 (Land Uses), 18.28.070 (Additional
Open Space (OS) District Regulations), and 18.28.080 (Additional Agricultural
Conservation (AC) District Design Requirements) are proposed for amendment to
implement Housing Element Program 6.5G. As a requirement of the Program, no
discretionary permit will be required for farmworker housing of up to 36 beds or 12
units in the AC or OS zones unless such a permit is required for agricultural use.
Additionally, farmworker housing for six or fewer people in the OS zone will be treated
as a single-family use and will not require a discretionary permit unless a discretionary
permit is required for a single-family dwelling of the same type.
Senate Bill (SB) 9 Zoning Text Amendments
During the review of the Housing Element, leading up to certification, HCD informed staff that
modifications were required to the City’s SB 9 regulations for compliance with State law based
on the most recent HCD guidance.
Draft Zoning Text Amendment: To address the issues identified by HCD, minor amendments to
Section 21.10.040(d) have been made to allow for urban lot splits even in instances where
existing structures or lot lines would otherwise prohibit a lot split. “Newly created lot lines shall
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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 non-compliant
structure)”; identified as too restrictive by HCD3 has been removed.
FISCAL/RESOURCE IMPACT
There are no fiscal or resource impacts associated with the action.
POLICY IMPLICATIONS
The Housing Element is an integral component of the Comprehensive Plan of the City. The
policies and implementation programs of the City’s adopted Housing Element remove the
constraints to housing production. As part of the implementation of Program 3.2 (Monitor
Constraints to Housing) of the Housing Element, the City is required to prepare an analysis in
staff reports for initiatives proposing new regulations. This analysis should detail how the
regulations may impact housing production, if at all, and recommend solutions to address any
adverse impacts.
Amendments to the municipal code to implement Housing Element Programs 1.5A (Stanford
University Lands), 3.6D (Expedited Project Review), 4.1A (Replacement Housing), and 6.5C-G
(Alternate Housing), and amending Title 21 (Subdivision and Other Divisions of Land) to
incorporate changes as directed by Housing and Community Development (HCD) related to
Senate Bill 9 implementation advance the development of affordable housing, supportive
housing, and other multi-family housing opportunities in the City.
STAKEHOLDER ENGAGEMENT
Preparation of the Housing Element included a range of community outreach methods,
including surveys, Working Group meetings, community workshops, public review comment
periods on draft documents, and public hearings. The community provided feedback on the
programs as a part of the Housing Element update process. Additionally, the Planning and
Transportation Commission meeting held on November 13, 2024, to discuss the amendments
to the municipal code were agendized, noticed, and open to public. Staff received written
comments from Palo Alto Forward and one public comment from Palo Alto Forward at the
Planning and Transportation Commission meeting. The comments received were all in support
of the changes made to the Ordinance language. The proposed amendments to the PAMC Titles
18 (Zoning) and 21 (Subdivisions and Other Divisions of Land) implement the 2023- 2031
Housing Element Programs adopted by the City Council and certified by HCD. Other minor
amendments are included as required by HCD related to SB 9 implementation.
3 Earlier versions of the ordinance included a provision amending Section 18.42.180 to implement Housing
Element Program 6.3A by increasing floor area limitation for some SB 9 projects from 800 square feet to 1,200
square feet. This change has been rendered moot by SB 450 (2024), which precludes the imposition of
development standards on SB 9 projects that do not apply uniformly in the zone district. On December 16, 2024,
the City Council adopted an ordinance amending the City’s SB 9 ordinance to implement SB 450.
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ENVIRONMENTAL REVIEW
The Revised Addendum to the Comprehensive Plan EIR analyzes the impacts of the City of Palo
Alto 2023-2031 Housing Element, including the programs implemented by ordinance.
Therefore, no additional environmental analysis is required at this time.
ATTACHMENTS
Attachment A: Draft Ordinance Amending Sections of PAMC Title 18 (Zoning) and Title 21
(General Requirements).
Attachment B: Housing Element Programs
APPROVED BY:
Jonathan Lait, Planning and Development Services Director
*NOT YET APPROVED*
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Ordinance No. _____
Ordinance of the Council of the City of Palo Alto Amending Various Chapters of
Title 18 (Zoning) of the Palo Alto Municipal Code to Implement the 2023-2031
Housing Element
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. On May 8, 2023, the City Council adopted Resolution No. 10107, approving an Addendum
to the Comprehensive Plan Environmental Impact Report (EIR), making various findings,
and adopting the 2023-2031 Housing Element for the City of Palo Alto.
B. On December 18, 2023, the City Council approved a Revised Addendum to the
Comprehensive Plan EIR and adopted Ordinance No. 5608, rezoning sites in the 2023-
2031 Housing Element Sites Inventory to accommodate the City’s Regional Housing Needs
Allocation.
C. On April 15, 2024, the City Council adopted Resolution No. 10155, making various
findings, adopting a Revised 2023-2031 Housing Element, and authorizing the Director of
Planning and Development Services to take further actions necessary to achieve
certification of the Housing Element by the California Department of Housing and
Community Development (HCD).
D. On August 19, 2024, HCD found that the Revised 2023-2031 Housing Element, as further
modified on July 17, 2024, was substantially compliant with state law.
E. The City’s Revised 2023-2031 Housing Element includes several programs that require
updates to the Palo Alto Municipal Code in Fiscal Year 2025. These include parts of
programs 1.5 (Stanford University Lands), 3.6 (Expedited Project Review), 4.1
(Replacement Housing), and 6.5 (Alternative Housing).
F. On November 13, 2024, the Planning and Transportation Commission considered and
recommended that the City Council adopt this ordinance to implement the 2023-2031
Housing Element.
SECTION 2. Sections 18.20.030 (Land Uses) and 18.20.040 (Site Development
Standards) of Chapter 18.20 (Office, Research, and Manufacturing (MOR, ROLM, RP and GM)
Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows
(additions underlined; deletions struck-through; unchanged text omitted by bracketed ellipses):
18.20.030 Land Uses
(a) Permitted and Conditionally Permitted Land Uses
*NOT YET APPROVED*
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Table 1 lists the land uses permitted or conditionally permitted in the industrial and
manufacturing districts.
Table 1
Industrial/Manufacturing District Land Uses
[P = Permitted Use CUP = Conditional Use Permit Required]
MOR ROLM
ROLM(E)
RP
RP(5)
GM Subject to
Regulations in
Chapter:
[. . .] [. . .] [. . .] [. . .] [. . .] [. . .]
RESIDENTIAL USES
Single-Family 18.20.040(b)
Two-Family 18.20.040(b)
Multiple-Family (Housing
Element Opportunity Site)
P P P 18.14.020
Multiple-Family CUP CUP(1) CUP P(2) CUP(1) 18.14.020,
18.42.200
Residential Care Homes P CUP CUP CUP 18.23.100(B)
18.42.200(B)
[. . .] [. . .] [. . .] [. . .] [. . .] [. . .]
Notes:
(1) Adjacent to Bayshore Freeway and generally bounded by East Charleston Road and Loma
Verde Avenue (see Figure 1), subject to CUP.
(2) A CUP is required for residential development proposed on sites within 600 feet of a facility
in which Tier 2 Hazardous Materials are manufactured, stored, used, or handled. In no event
shall residential development be permitted on a site within 300 feet of a facility in which Tier
2 Hazardous Materials are manufactured, stored, used, or handled. This footnote shall be
interpreted in a manner consistent with Section 18.42.200.
[. . .]
(d) Emergency Shelters for the Homeless
Emergency shelters for the homeless may be allowed as a permitted use in the ROLM(E) district
on properties located east of Highway 101, subject to the following performance and design
standards. An emergency shelter in the ROLM(E) district shall be reviewed ministerially,
without discretionary review.
Performance and Design Standards for Emergency Shelters for the Homeless.
An emergency shelter for the homeless shall conform to all site development standards and
performance criteria of the ROLM(E) zone district except as modified by the following
performance and design standards:
*NOT YET APPROVED*
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(1) The construction of and/or renovation of a building for use as an emergency shelter shall
conform to all applicable building and fire code standards.
(2) There shall be provided one parking space for each three (3) beds in the emergency
shelter.
(3) Shelters shall have designated smoking areas that are not visible from the street and
which are in compliance with all other laws and regulations.
(4) There shall be no space for outdoor congregating in front of the building adjacent to the
street and no outdoor public telephones.
(5) There shall be a refuse area screened from view.
(6 2) Maximum number of persons/beds. The emergency shelter for the homeless shall
contain no more than 40 beds.
(7) Size and location of exterior and interior on-site waiting and client intake areas. Shelters
shall provide 10 square feet of interior waiting and client intake space per bed. In addition,
there shall be two office areas provided for shelter staff. Waiting and intake areas may be
used for other purposes as needed during operations of the shelter.
(8 3) On-site management and security. On-site management and on-site security shall be
provided during hours when the emergency shelter is in operation.
(9 4) The emergency shelter provider shall submit an operations plan that addresses the
standards for operation contained in the Palo Alto Quality Assurance Standards for
Emergency Shelters for the Homeless Santa Clara Countywide Quality Assurance Standards
for Homeless Housing & Service Programs.
(10) Distance to other facilities. The shelter must be more than 300 feet from any other
shelters for the homeless.
(11 5) Length of stay. Temporary shelter shall be available to residents for no more than
60120 days. Extensions up to a total stay of 180 days may be provided if no alternative
housing is available.
(12 6) Outdoor lighting shall be sufficient to provide illumination and clear visibility to all
outdoor areas, with minimal shadows or light leaving the property. The lighting shall be
stationary and directed away from adjacent properties and public rights-of-way.
[. . .]
18.20.040 Site Development Standards
[. . .]
(i) (Reserved) Emergency Shelters for the Homeless
*NOT YET APPROVED*
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An emergency shelter for the homeless shall conform to all site development standards and
performance criteria of the ROLM(E) zone district except as modified by the following standards:
(1) Sufficient on-site parking shall be provided to accommodate all staff working in the
emergency shelter.
(2) Shelters shall provide 10 square feet of interior waiting and client intake space per bed.
In addition, there shall be two office areas provided for shelter staff. Any outdoor
waiting area shall be in a location not adjacent to the street. Waiting and intake areas
may be used for other purposes as needed during the operations of the shelter.
(3) There shall be a refuse area screened from view.
[. . .]
SECTION 3. 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 as follows
(additions underlined; unchanged text omitted by bracketed ellipses):
Use Vehicle Parking Requirement
(# of spaces)
Bicycle Parking Requirement
Spaces Class 1 Long-
Term (LT) and
Short-Term (ST)
[. . .] [. . .] [. . .]
SERVICES USES
[. . .] [. . .] [. . .]
Day Care Homes, Family
(Large)
2 per dwelling unit, one of which
shall be covered, plus one for
each employee not residing at
the home
None
Emergency Shelters for the
Homeless
1 per employee not residing
at the shelter.
None
[. . .] [. . .] [. . .]
SECTION 4. Section 18.77.070 (Architectural Review Process) of Chapter 18.77
(Processing of Permits and Approvals) of Title 18 (Zoning) of the Palo Alto Municipal Code is
amended as follows (additions underlined; deletions struck-through; unchanged text omitted by
bracketed ellipses):
18.77.070 Architectural Review Process
[. . .]
(c) Hearing and Recommendation for Major Projects, and for Minor Projects Upon Request
*NOT YET APPROVED*
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(1) Upon receipt of a completed application for a major project (as defined in Section
18.76.020(b)(2)), or upon receipt of a timely request for a hearing for a minor project
(as defined in Section 18.76.020(b)(3)), the architectural review board shall set a hearing
date to review the application.
(2) Notice of the hearing shall be given at least 10 days prior to the hearing by publication
in a local newspaper, by posting in a public place, and by mailing to the applicant, the
hearing requestor, if applicable, and all residents and owners of property within 600
feet of the project. Notice shall include the address of the property, a brief description
of the proposed project, and the date and time of the hearing.
(3) Following the hearing, the architectural review board shall make a recommendation on
the application, which shall be forwarded to the director.
(4) A housing development project that is subject to major Architectural Review under
Section 18.76.020 shall be limited to two meetings before the Architectural Review
Board, unless the applicant requests additional hearings.
(d) Decision by the Director
Upon receipt of a recommendation of the architectural review board:
(1) Within 5 working days, the director shall prepare a written decision to approve the
application, approve it with conditions, or deny it.
(2) Notice of the director’s decision shall be given by mailing to owners and residents of
property within 600 feet of the property, and by posting in a public place. Notice shall
include the address of the property, a brief description of the proposed project, a brief
description of the action to be taken, the date the decision will be final, and a description
of how to request a hearing.
(3) The director’s decision shall become final 14 days after the date notice is mailed unless
an appeal is filed. The director may, for good cause, specify in writing a longer period for
requesting a hearing at the time he or she issues the proposed decision.
(4) If the architectural review board continues a minor project or housing development
project more than once, or a major project more than twice, the director may make a
decision on the application prior to receiving the final recommendation of the board.
[. . .]
SECTION 5. Section 18.14.060 (By Right Housing Projects) of Chapter 18.14 (Housing
Incentives) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby added as follows:
18.14.060 By Right Housing Projects
(a) Affordable Housing on Higher Education and Religious Lands
*NOT YET APPROVED*
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(1) Notwithstanding any conflicting provision of this Title 18 or the Comprehensive
Plan, a qualifying housing development project under California Government
Code Section 65913.16 shall be a use by right.
(2) Housing development projects utilizing this section in the R-1 Single-Family
Residential District and the Low-Density Residential Districts shall be subject to
the development standards for the RM-30 zoning district, except that the
maximum Floor Area Ratio (FAR) shall be 1.25.
(3) All housing development projects utilizing this section shall comply with Chapter
18.24 (Contextual Design Criteria and Objective Design Standards).
(b) Supportive Housing in Multi-family and Mixed-use Zones
(1) Supportive housing shall be a use by-right in zones where multifamily and mixed
uses are permitted, including nonresidential zones permitting multifamily uses, if
the proposed housing development satisfies all of the requirements of California
Government Code Sections 65650-65656.
(2) All housing development projects utilizing this section shall comply with Chapter
18.24 (Contextual Design Criteria and Objective Design Standards).
(c) Low Barrier Navigations Centers in Multi-family and Mixed-use Zones
(1) Low barrier navigation centers shall be a use by-right in zones where multifamily
and mixed uses are permitted, including nonresidential zones permitting
multifamily uses, if the proposed project satisfies all of the requirements of
California Government Code Sections 65660-65658.
(d) Group Homes in Residential Zones
(1) As used in this Section, “group home” means housing shared by unrelated persons
with disabilities that provide peer and other support for their residents’ disability-
related needs and in which residents share cooking, dining, and living areas. Group
home includes Residential Care Home, as defined in Section 18.04.030.
(2) Group homes that do not provide services requiring licenses under state law and
Residential Care Homes shall be uses by-right in residential zones, subject only to
those standards and requirements applicable to residential uses.
(e) Provided they comply with the City’s objective standards, by-right projects under this
section shall not be subject to any discretionary review nor environmental review under the
California Environmental Quality Act. By-right projects under this section shall be processed
in accordance with Section 18.77.074.
SECTION 6. 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 hereby amended as follows (additions underlined; deletions struck-through):
18.40.160 Replacement Project or Discretionary Review Required
*NOT YET APPROVED*
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(a) Except where necessary for health and safety purposes (as determined by the City's
Building Official), N no permit required under Title 2 (Administrative Code), Title 12 (Public
Works and Utilities), or Title 16 (Building Regulations) shall be issued:
(1) 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 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 the
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
(2) For any project requiring discretionary review under Title 18 or Title 21, unless the
application for discretionary review has been approved.
(3) For demolition or deconstruction of a residential unit, unless a replacement
project has been approved that contains at least as many residential dwelling units
as will be demolished.
(A) If the proposed development project is not a housing development
project, the replacement housing units may be located on a site other than
the project site but shall be located within Palo Alto and shall be developed
prior to or concurrently with the proposed development project.
(B) If the existing residential unit(s) is a nonconforming use, it shall be replaced
in a manner consistent with the current zone district regulations.
(C) Replacement of Protected Units, as those terms are defined in California
Government Code Section 66300.5, shall be subject to the additional
requirements of California Government Code Section 66300.6.
SECTION 7. Sections 18.28.020 (Definitions) 18.28.040 (Land Uses), 18.28.070
(Additional OS District Regulations), and 18.28.080 (Additional AC District Regulations) of Chapter
18.28 (Special Purpose (PF, OS, and AC) Districts) of Title 18 (Zoning) of the Palo Alto Municipal
Code are hereby amended as follows (additions underlined; unchanged text omitted by
bracketed ellipses):
18.28.020 Definitions
As used in this chapter, unless otherwise apparent from the context, the following definitions
shall apply:
(a) "Conservation or natural resource land" means land which possesses or encompasses
conservation or natural resources.
(b) "Conservation or natural resource" includes, but is not necessarily limited to, streams,
watersheds, groundwater recharge, soils, wildlife habitat, as defined in this section,
special landforms, and natural vegetation.
*NOT YET APPROVED*
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(c) “Farmworker housing” means employee housing, as that term is defined in California
Health and Safety Code Section 17008, for agricultural employees, as that term is defined
in California Labor Code Section 1104.4.
(c d) "Open space land" means any parcel or area of land essentially unimproved or in its
natural state, and devoted to an open space use as defined in this section, and which is
designated in the open space element for an open space use.
(d e) "Open space district" means any area of land or water designated "OS" and subject to all
of the terms and regulations of this chapter.
(e f) "Open space use" means the use of land for:
(1) Public recreation;
(2) Enjoyment of scenic beauty;
(3) Conservation or use of natural resources;
(4) Production of food or fiber;
(5) Protection of persons and their artifacts (buildings, property, etc.);
(6) Containment and structuring of urban development.
(f g) "Recreation land" means any area of land or water susceptible to recreational uses.
(g h) "Scenic land" means any area of land or water that possesses scenic qualities worthy of
preservation.
(h i) “Wildlife habitat” means any area of land or water valuable or necessary to the
preservation or enhancement of wildlife resources.
[. . .]
18.28.040 Land Uses
Table 1 shows the permitted (P) and conditionally permitted (CUP) land uses for the Special
Purpose Districts.
Table 1
Land Uses
PF OS AC Subject to
Regulations in
Chapter:
[. . .] [. . .] [. . .] [. . .] [. . .]
AGRICULTURAL AND OPEN SPACE USES
Agricultural Uses, including
animal husbandry, crops,
P P
*NOT YET APPROVED*
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dairying, horticulture, nurseries,
livestock farming, tree farming,
viticulture, and similar uses not
inconsistent with the intent and
purpose of this chapter, including
farmworker housing(3) in
accordance with the California
Health and Safety Code
[. . .] [. . .] [. . .] [. . .] [. . .]
RESIDENTIAL USES
Single-family dwellings P(3)
Manufactured housing (including
mobile homes on permanent
foundations)
P 18.40.
18.42.100
[. . .] [. . .] [. . .] [. . .] [. . .]
Footnotes:
(1) Provided such use is conducted on property owned by the City of Palo Alto, the County of
Santa Clara, the State of California, the government of the United States, the Palo Alto Unified
School District, or any other governmental agency, and leased for said uses.
(2) An accessory dwelling unit or a Junior Accessory Dwelling Unit associated with a single-
family residence on a lot in the OS District is permitted, subject to the provisions of Section
18.42.040, and such that no more than two total units result on the lot.
(3) In accordance with California Health and Safety Code Section 17021.5, employee housing
for six (6) or fewer employees shall be deemed a single-family structure. In accordance with
Health and Safety Code Section 17021.6, qualifying farmworker housing shall be considered an
agricultural use.
[. . .]
18.28.070 Additional OS District Regulations
The following additional regulations shall apply in the OS district:
(a) Accessory Dwelling Units and Junior Accessory Dwelling Units
Accessory Dwelling Units and Junior Accessory Dwelling Units are subject to the regulations set
forth in Section 18.42.040.
(b) Site and Design Approval
All sites in the OS district shall be subject to the Site Design and Review Combining District (D) as
provided in Chapter 18.30(G) of the Zoning Ordinance, subject to the following modifications:
(1) Minor Site and Design Review: For minor projects (e.g., fences, landscape changes to an
approved project, trash enclosures, accessory buildings 200 square feet or less, etc.), the
*NOT YET APPROVED*
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review process shall follow the Minor Architectural Review (staff level) procedures as
outlined in Section 18.77.070. To qualify as a minor project, the project shall have less
than 10 cubic yards of excavation and or grading and be Categorically Exempt from the
California Environmental Quality Act (CEQA).
(2) Major Site and Design Review: For all other projects not reviewed as Minor Site and
Design Review, the project will be forwarded to the Planning and Transportation
Commission for review and recommendation and then placed on the Council Consent
agenda for final action, as prescribed for staff actions outlined in Section 18.77.060
(Standard Staff Review Process). Provided, however, that the following projects may be
forwarded directly to the City Council Consent agenda by staff, without review by the
Planning and Transportation Commission, where all of the following conditions apply:
a. The project is not a second dwelling unit; and
b. The project would comprise less than 1,000 square feet of floor area, less than
1,000 square feet of impervious cover, and less than 100 cubic yards of excavation
and/or grading; and
c. The proposed floor area or impervious cover would not exceed 50% of the
allowable for the site; and
d. The project and any prior projects within the prior five years would not
cumulatively exceed these thresholds.
(3) Farmworker housing may be entitled to streamlined review pursuant to California Health
and Safety Code Section 17021.8.
[. . .]
18.28.080 Additional AC District Design Requirements
The following additional regulations shall apply in the AC district:
(a) Site and Design Approval
All sites in the AC district shall be subject to the Site Design and Review Combining District (D)
regulations as provided in Chapter 18.30(G), except that farmworker housing may be entitled to
streamlined review pursuant to California Health and Safety Code Section 17021.8.
(b) Location of Agricultural Facilities
Barns, stables, sheds, chicken houses, and other similar facilities for the shelter and feeding of
animals, exclusive of domestic household pets, shall be located a minimum of 40 feet from any
site line.
SECTION 8. Section 21.10.040 (General Requirements) of Chapter 21.10 (Parcel Maps
for Urban Lot Splits in Single-Family Zones) of Title 21 (Subdivisions and Other Divisions of Land)
of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions
struck-through):
*NOT YET APPROVED*
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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) 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.
(d) 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 Reserved.
(e) Each parcel shall comply with any objective lot design standards for Urban Lot Splits
adopted by the City Council.
(f) Utility easements shall be shown on the parcel map and recorded prior to, or concurrent
with the final parcel map recordation.
(g) A covenant necessary for the maintenance of stormwater treatment facilities shall be
recorded prior to, or concurrent with final map recordation.
(h) Existing driveways to be demolished shall follow the procedure(s) in 12.08.090
Elimination of abandoned driveway.
(i) A maintenance agreement shall be recorded to ensure shared maintenance of any shared
access easements, stormwater treatment, landscaping, and private utilities, prior to final
parcel map recordation.
SECTION 9. If any section, subsection, sentence, clause, or phrase of this Ordinance is
for any reason held to be invalid or unconstitutional by a decision of any court of competent
jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance.
The City Council hereby declares that it would have passed this Ordinance and each and every
section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without
regard to whether any portion of the Ordinance would be subsequently declared invalid or
unconstitutional.
SECTION 10. In accordance with the California Environmental Quality Act (CEQA), the
City prepared an Addendum to the 2017 Comprehensive Plan Environmental Impact Report (EIR),
analyzing the potential environmental impacts of the 2023-2031 Housing Element. On May 8,
2023, the City Council adopted Resolution No. 10107, and on December 18, 2023, the City Council
approved a Revised Addendum, finding that the Addendum, as revised, and the 2017 EIR
*NOT YET APPROVED*
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adequately analyzed the environmental impacts of the Housing Element, including the Programs
implemented by this ordinance.
SECTION 11. This Ordinance shall be effective on the thirty-first date 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
Attachment B: Housing Element Programs
1.5A: Stanford University Lands, 3.6D: Expedited Project Review, 4.1A: Replacement Housing),
6.5 (C-G): Alternate Housing.
Housing Element Program 1.5: Stanford University Lands
A. Permitting Multiple Family in RP Zones: Remove the Conditional Use requirement for
residential uses in the Research Park zone district, which is specific to the Stanford
Research Park, except for properties subject to or impacted by the City’s hazardous
materials ordinance. Sites included in Appendix D will have the Conditional Use
requirement removed under Program 1.1.
Housing Element Program 3.6: Expedited Project Review
D. Limiting ARB Hearings: For housing projects subject to the City’s Architectural Review
Board, limit the number of hearings before the ARB to a maximum of two meetings.
Housing Element Program 4.1: Replacement Housing
A. Replacement Housing: Enforce replacement housing requirements as required by State
law. Amend the City’s municipal code to require all sites listed in the housing element, all
projects utilizing density bonuses, and all projects demolishing residential dwelling units to
meet the replacement housing requirements of State law contained in housing element
law, density bonus law, the Housing Crisis Act of 2019 as amended by AB 1218.
Housing Element Program 6.5: Alternate Housing
C. Group Homes: Amend the PAMC to include group homes by right in all residential
zones. Include a set of objective standards to provide certainty to applicants through the
permitting process.
D. Supportive Housing: Amend the PAMC to be consistent with Government Code Sections
65650 et seq., which require that Supportive Housing meeting the standards in the statute
be treated as a by-right use where multifamily and mixed uses are permitted, including
nonresidential zones permitting multifamily uses. Amendments will also be made to allow
transitional and supportive housing, as defined in Government Code Section 65582, to be
permitted as a residential use in all zones allowing residential uses and only subject to
those restrictions that apply to other residential dwellings of the same type in the same
zone.
E. Low Barrier Navigation Centers: Amend the PAMC to be consistent with Government
Code sections 65660 et seq., which require a Low Barrier Navigation center to be a use by-
right in areas zoned for mixed-use and nonresidential zones permitting multifamily uses,
provided specific requirements of the law are met.
F. Homeless and Emergency Shelters and Navigation Centers: Amend the PAMC parking
regulations for Homeless and Emergency Shelters and Navigation Centers to comply with
Government Code section 65583, subdivision (a)(4)(A). Allow emergency shelters in the
ROLM(E) zone to be approved ministerially, without discretionary action, remove distance
requirements, adjust the length of stay requirements, and ensure that the development
standards for shelters are in compliance with statutory requirements.
G. Farmworker Housing: Amend the PAMC zoning code to ensure compliance with the
Employee Housing Act (including California Health and Safety Code sections 17021.5,
17021.6, and 17021.8) to State that farmworker housing up to 36 beds or 12 units are to
be permitted as an agricultural use and therefore “by right” in the AC and OS zones and
no discretionary permit would be required of employee housing providing accommodation
for six or fewer employees if discretionary permits are not required of a family dwelling of
the same type in the same zone.
Housing Element Implementation Ordinance Amending Titles 18 and 21 of PAMC City Council Hearing
January 21, 2025 www.cityofpaloalto.org
2
Title 18 (Zoning Ordinance) Amendments
•Council Housing Element Ordinance Priorities 2024:
o Housing Element Program 1.5A (Stanford University Lands)
o Housing Element Program 3.6D (Expedited Project Review)
o Housing Element Program 4.1A (Replacement Housing)
o Housing Element Program 6.5C (Alternate Housing)
o Housing Element Program 6.5D-G (Alternate Housing)
•Housing Element - Program Implementation Target
Completion: January 31, 2025
3
1.5A: STANFORD UNIVERSITY LANDS
•PAMC Section 18.20.030 to Permit Multiple-
Family Residential in Research Park (RP and RP(5)) zones.
o Housing is currently allowed with a CUP, this change
allows housing as a permitted use
o A CUP is still required for housing units within 600 feet
of a certain hazardous facilities and precluded within
300 feet consistent with City’s Hazardous Materials
Ordinance (PAMC Section 18.42.200).
4
3.6D: EXPEDITED PROJECT REVIEW
•PAMC Section 18.77.070 (c) and (d) to limit the number of
hearings for housing projects before the ARB
o Current regulations allow up to three public meetings by
the ARB
o Proposed ordinance sets a new maximum of two
meetings for housing development unless additional
meetings are requested by the applicant.
o Amendment supports housing application streamlining.
5
4.1A: REPLACEMENT HOUSING
•PAMC Section 18.40.160 to include a new subsection (a)(3)
o Requires replacement of protected units (residential unit
that is subject to rent control to levels affordable to very-
low or low-income persons or families).
o Required by State law contained in the Housing Crisis Act
of 2019 as amended by AB 1218.
6
6.5 ALTERNATE HOUSING
PAMC Section 18.14.060
•6.5 C (Group Homes):Group Homes (housing shared by
unrelated persons with disability) to be treated as a by-right
use in residential zones.
•6.5 D (Affordable and Supportive Housing):
o Affordable Housing (housing offered at an affordable
cost) as a by-right use on Higher Education and Religious
Lands.
o Supportive Housing (housing occupied by target
population with no limit to length of stay) meeting
the State Law requirements to be treated as a by-right
use where multifamily and mixed uses are permitted.
7
6.5: ALTERNATE HOUSING (continued)
PAMC Section 18.14.060
•6.5 E (Low Barrier Navigation Centers): Low Barrier
Navigation Centers (housing first, temporary, low barrier,
service-enriched centers that help homeless individuals and
families to obtain permanent housing.
•These uses would be allowed by-right use in zones where
multifamily and mixed uses are permitted.
7
6.5: ALTERNATE HOUSING (continued)
PAMC Section 18.14.060
•6.5 F (Emergency Shelters): (housing for homes with limited
supportive services)
o Emergency Shelter for homeless projects to be reviewed
ministerially.
o Updating PAMC Section 18.20.040: Site Development
Standards per requirements of Government Code Section
65583.
8
6.5: ALTERNATE HOUSING (continued)
•6.5G (Farmworker Housing): PAMC Section 18.28.040 to
allow Farmworker Housing (living space for agricultural
workers)as a "Permitted” use in the Additional OS and
AC Districts.
o PAMC Section 18.28.070 to ensure that no discretionary
permit would be required for farmworker housing of up
to 36 beds or 12 units in AC zones.
o PAMC Section 18.28.080 to ensure Farmworker housing
with six or fewer people in OS zones is treated as a
single-family use and does not require a discretionary
permit.
9
Title 21 (Subdivision and Other Divisions of Land)
•During the review of the Housing Element, leading up to
certification, HCD informed staff that modifications were
required to the City’s SB 9 regulations for compliance with
State law based on the most recent HCD guidance.
•Amending PAMC Section 21.10.040(d) removing note: “Newly
created lot lines shall not render an existing structure
noncomplying in any respect"to allow for urban lot splits
even in instances where existing structures or lot lines would
otherwise prohibit a lot split.
10
Discussion and action on this item will be segmented to allow for recusals due to
conflicts related to Stanford University real property interests.
1.Staff Presentation
2.Request for Disclosures/Conflicts of Interest
3.Public Comment
4.Recusals
5.Questions / Deliberation / Action
•Stanford University-Related ordinance changes in the Research Park
•Portions of Section 2 in Attachment A
6.Recused Member(s) Return
7.Questions / Deliberation / Action
•balance of the ordinance
Council Deliberation
11
Staff recommends the City Council adopt the Draft Ordinance Amending Section
18.20.030 of the PAMC Title 18 (Zoning) to implement components of Housing
Element Program 1.5A (Stanford University Lands).
Recommended Motion (Part 1)
Housing Element Program 1.5 A: Stanford University Lands
12
Staff recommends the City Council adopt an ordinance amending PAMC Title 18
(Zoning Ordinance) to implement components of the Housing Element Programs 3.6D
(Expedited Project Review), 4.1A (Replacement Housing), and 6.5C-G (Alternate
Housing), and amending Title 21 (Subdivision and Other Divisions of Land) to
incorporate changes as directed by Housing and Community Development (HCD)
related to Senate Bill 9 implementation.
Recommended Motion (Part 2)
Housing Element Programs 3.6 D, 4.1A, 6.5 (C - G) and SB 9
Vishnu Krishnan
Senior Planner
Vishnu.Krishnan@CityofPaloAlto.org
(650)329-2425