HomeMy WebLinkAboutStaff Report 2503-4352 City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: April 7, 2025
Report #:2503-4352
TITLE
SECOND READING: Adoption of an Ordinance Amending Palo Alto Municipal Code (PAMC) Title
18 (Zoning) to Modify the Housing Incentive Program, Affordable Housing Incentive Program,
and Retail Preservation Ordinance (Housing Element Programs 3.3A, B, and D; 3.4A-D; and
6.2A). (FIRST READING: March 3, 2025, PASSED 6-0-1, Lythcott-Haims absent)
RECOMMENDATION
Staff recommends the City Council adopt on second reading the attached housing element
implementation ordinance to modify the Housing Incentive Program, Affordable Housing
Incentive Program, and Retail Preservation Ordinance.
EXECUTIVE SUMMARY
On March 3, 2025, the City Council adopted, on first reading, an ordinance amending the zoning
code to implement programs in the City’s adopted Housing Element that modify the Housing
Incentive Program, Affordable Housing Incentive Program, and Retail Preservation Ordinance.
The City Council’s motion and revisions in response to this motion are summarized below.
March 3, 2025 City Council Motion Revisions to Ordinance/Resolution
1. Modify the retail node to extend
along El Camino Real from Page Mill
Road to the southern City boundary,
and refer to the Planning &
Transportation Commission for
further discussion and
recommendation to City Council
Revised PAMC Chapter 18.40.180(c)(4)(E) Figure 5.
As shown in Attachment B, this map change
creates an "interim" node, extending from Page
Mill Road to the southern City boundary where the
Retail Preservation Ordinance will continue to
apply, until such time as the Planning and
Transportation Commission recommends and the
City Council determines refined node locations.
Future changes to the map may be made by
resolution or by administrative action of the
Planning Director.
2. Exclude auto dealerships (AD
overlay) near El Camino Real and
Charleston Road from the HIP
Program
Revised Ch. 18.14.030(b), Housing Incentive
Program applicability section, to exempt sites on El
Camino Real subject to the auto dealership (AD)
combining district regulations in Chapter 18.30(F)
from eligibility from the HIP.
ATTACHMENTS
Attachment A: Amendments to Title 18 to Implement Housing Element Programs 3.3_3.4_6.2A
Attachment B: Retail Nodes on El Camino Real Subject to Retail Preservation
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 Programs 3.3 and
3.4 of the 2023-2031 Housing Element to Revise the Housing Incentive Program
and Affordable Housing Incentive Program
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. Programs 3.3 and 3.4 of the City’s Revised 2023-2031 Housing Element direct a variety of
updates to the City’s Housing Incentive Program and Affordable Housing Incentive Program,
which are implemented in this ordinance.
F. On December 17, 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. Section 18.14.030 (Housing Incentive Program) of Chapter 18.14 (Housing Incentives)
of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended to read as follows:
18.14.030 Housing Incentive Program
(a) Purpose
The housing incentive program modifies base zoning district standards and streamlines review
to encourage higher-density multi-family housing production. The program is a local
alternative to State Density Bonus Law.
*NOT YET APPROVED*
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(b) Applicability
The housing incentive program shall apply to the following zoning districts or locations:
(1) Chapter 18.13: RM-20, RM-30, RM-40
(2) Section 18.14.020: GM/ROLM Focus Area (see Figure 1)
(3) Chapter 18.16: CC(2); CN or CS-zoned sites on El Camino Real, except sites in the
Automobile Dealership (AD) Combining District; CS sites on San Antonio Road between
Middlefield Road and East Charleston Road
(4) Chapter 18.18: CD(C)
(5) Chapter 18.29: NV- R3, NV- R4, NV- MXL, NV- MXM, NV- MXH, NV- PF
(c) Procedures
The regulations established by this section provide increases in development standards for
eligible projects electing to take advantage of the Housing Incentive Program. A property
owner may elect to use the site consistent with the underlying zoning district.
The Housing Incentive Program provides flexibility in development standards that allow for a
density increase that would in most cases exceed density bonuses under state density bonus
law (Government Code Section 65915). Therefore, a project applicant may utilize the
provisions of this section as an alternative to use of the state density bonus law implemented
through Chapter 18.15 (Density Bonus) of this Title, but may not utilize both this section and
state density bonus law. If an applicant utilizes state density bonus law, the provisions of this
section shall not apply.
(d) Permitted Uses
The following uses shall be permitted to use the housing incentive program:
(1) Multiple-Family Residential.
(2) In conjunction with a Multiple-Family Residential use, any uses permitted in the
underlying district, provided the uses are limited to the ground floor.
(e) Development Standards
For all eligible zoning districts, the housing incentive program shall modify underlying zoning
district standards as shown in Table 5. Floor area ratio (FAR) and building height standards are
specified in Table 6; unlike the standards in Table 5, these standards vary by zoning district
and whether or not a site is classified as an opportunity site listed in Appendix D of the Housing
Element.
Table 5
Housing Incentive Program Development Standards
Minimum Site Specifications
Standards for All Eligible
Zoning Districts Subject to regulations in:
*NOT YET APPROVED*
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Minimum Setbacks
Front Yard (ft) Same as underlying district
or 10 ft. (whichever is less)
Setback lines imposed by a
special setback map
pursuant to Chapter 20.08
of this code or imposed to
create required effective
sidewalk widths apply.
Rear Yard (ft) Same as underlying district
Rear Yard abutting residential
zoning district (ft)
Same as underlying district
Interior Side Yard if abutting
residential zoning district (ft)
Same as underlying district
Street Side Yard (ft) Same as underlying district
or 8 ft. (whichever is less)
Maximum Site Coverage 100% (commercial districts
and GM/ROLM Focus Area)
70% (residential districts)
Minimum Landscape/Open Space
Coverage
Same as underlying district See 18.14.020 for
modified standards
applicable to Housing
Element Opportunity Sites
Minimum Usable Open Space Same as underlying district
Maximum Height (ft) See Table 6 for standards,
by zoning district
Portions of a site within 50 ft of a
low density residential district (RE,
R1, NV-R1, R2, NV-R2, RMD)
35 ft(1)
Daylight Plane for lot lines
abutting a low density residential
district (RE, R1, NV-R1, R2, NV-R2,
RMD)
Unless the underlying
zoning district standard is
more permissive, the
daylight plane shall be as
follows:
Initial height: 16 feet,
measured at the property
line
Slope: 45 degrees
*NOT YET APPROVED*
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Maximum Residential
Density (net)
RM-20 Zone (Non-Housing
Element Opportunity Site):
40 du/ac
All Other RM Zones: 60
du/ac, except no density
limit if at least 10% of units
are 3+ bedrooms
All Other Zones: None.
Minimum Commercial FAR Same as underlying district See Section 18.40.180
(retail preservation)
Maximum Total FAR See Table 6 for standards,
by zoning district
Minimum Vehicle Parking
1 space per studio/1-bed
1.5 spaces per 2-bed+
Additional adjustments to
the required ratios may be
considered per Chapter
18.52 (Parking).
TDM Plan
Projects providing fewer
than 50% of the parking
spaces that would be
required under Section
18.52.040 shall develop and
implement a transportation
demand management plan
containing, at a minimum:
(1) free transit passes for
residents (one per/unit);
(2) at least one on-site
short-term residential
loading space;
(3) bike repair station;
(4) allocation of 5% of
required bike parking
spaces to cargo bikes;
(5) provision of outlets
appropriate spaced for e-
bike charging at 20% of
required bicycle parking
spaces; and
See Chapter 18.52.050(d)
for additional TDM that
may be required.
*NOT YET APPROVED*
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(6) a micromobility program
with a fleet equal to 5% of
the number of proposed
units.
Notes:
(1) Distance shall be measured from the property line of the subject site.
Table 6
FAR and Building Height Standards, by Eligible Zoning District
Housing Incentive Program Standards
Maximum FAR(1)
Maximum
Building Height
Non-Housing
Element
Opportunity Sites
Housing Element
Opportunity Sites
CC(2) 2.6
3.5
60 ft.
CS (El Camino Real) 2.85
3.5
60 ft.
CS (San Antonio
Road between
Middlefield Road
and East Charleston
Road)
2.0 2.0 50 ft.
CN (El Camino Real) 2.5
3.25
50 ft.
CD(C) 3.0(2) 3.0(2) 50 ft.
RM-40 3.0 50 ft.
RM-30 2.5 40 ft.
RM-20 2.0 40 ft.
GM/ROLM Focus 3.5 No change
*NOT YET APPROVED*
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Area)
Notes:
(1) Maximum Floor Area Ratio shall be increased by 0.5:1 for projects in which at 10% of all
units contain three or more bedrooms.
(2) The use of transferable development rights under Section 18.18.080 shall not cause the
site to exceed an FAR of 3.0.
(f) Review Process
Housing Development Projects that comply with objective design standards pursuant to
Chapter 18.24 (Contextual Design Criteria and Objective Design Standards) shall be subject to
streamlined review pursuant to Section 18.77.073. All other projects shall be subject to
architectural review as provided in Section 18.76.020. Projects shall not be subject to the
requirements of site and design review in Chapter 18.30(G).
SECTION 3. Section 18.14.040 (Affordable Housing Incentive Program) of Chapter 18.14 (Housing
Incentives) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended to read as
follows:
(a) Purpose
The affordable housing incentive program is intended to promote the development of 100%
affordable rental housing projects by providing flexible development standards, modifying
allowed uses, and streamlining the project review process.
(b) Applicability
The affordable housing incentive program shall apply to 100% affordable housing projects in
the following zoning districts or locations:
(1) Housing Element Opportunity Sites listed in Appendix D of the Housing Element; or
(2) Properties located within one-half mile of a major transit stop or one-quarter mile of a
high-quality transit corridor and zoned CD, CN, CS, and CC, set forth in Chapters 18.16
and 18.18 of this Title, in accord with Chapter 18.08 and Chapter 18.80, but excluding
the Town and Country Village Shopping Center, Midtown Shopping Center, and
Charleston Shopping Center (unless otherwise allowed by subsection (i).
(3) Sites eligible for the Housing Incentive Program pursuant to Section 18.14.030(b).
The regulations established by this chapter shall apply for 100% affordable housing projects in
lieu of the uses allowed and development standards and procedures applied in the underlying
district. A property owner may elect to use the site consistent with the underlying zoning
*NOT YET APPROVED*
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district.
The affordable housing incentive program provides flexibility in development standards that
allow for a density increase that would in most cases exceed density bonuses under state
density bonus law (Government Code Section 65915). Therefore, a project applicant may
utilize the affordable housing incentive program and the provisions of this section as an
alternative to use of the state density bonus law implemented through Chapter 18.15 (Density
Bonus) of this Title, but may not utilize both the affordable housing incentive program and
state density bonuses law. If an applicant utilizes state density bonus law, the regulations in
this section shall not apply.
(c) Definitions
For purposes of this chapter, the following definitions shall apply.
(1) "100% affordable housing project" means a multiple-family housing project consisting
entirely of for-rent affordable units, as defined in Section 16.65.020 of this code,
except for a building manager's unit, and available only to households with income
levels at or below 120% of the area median income for Santa Clara County, as defined
in Chapter 16.65, and where the average monthly rent, inclusive of a reasonable
utilities allowance, does not exceed one-twelfth of 30% of the area median income
(100% AMI) for the appropriate household size.
(2) “Major transit stop” and “high-quality transit corridor” as defined in subdivision (b) of
Section 21155 of the Public Resources Code.
(d) Review Process
Housing Development Projects that comply with objective design standards pursuant to
Chapter 18.24 (Contextual Design Criteria and Objective Design Standards) shall be subject to
streamlined review pursuant to Section 18.77.073 (Streamlined Housing Development Project
Review). All other projects shall be subject to architectural review as provided in Section
18.76.020. Projects shall not be subject to the requirements of site and design review in
Chapter 18.30(G).
(e) Conformance to Other Combining Districts and Retail Preservation
The following requirements shall apply to projects in the AH affordable housing incentive
program:
(1) Where applicable, the requirements of Chapter 18.30(A) (Retail Shopping (R)
Combining District Regulations), Chapter 18.30(B) (Pedestrian Shopping (P) Combining
District Regulations), and Chapter 18.30(C) (Ground Floor (GF) Combining District
Regulations), and Pedestrian Shopping (P) Combining Districts shall apply.
(2) Where applicable, the retail preservation requirements of Section 18.40.180 shall
apply.
*NOT YET APPROVED*
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(3) Projects shall not be subject to the requirements of site and design review in Chapter
18.30(G).
(f) Permitted Uses
The following uses shall be permitted to use the AH affordable housing incentive program:
(1) 100% affordable housing projects;
(2) In conjunction with a 100% affordable housing project, provided the uses are limited
to the ground floor:
(A) Business or trade school.
(B) Adult day care home.
(C) Office less than 5,000 square feet when deed-restricted for use by a not-for-profit
organization.
(D) Any uses permitted in the underlying district
(g) Conditional Uses
All uses conditionally permitted in the applicable underlying zoning district may be
established in a project utilizing the AH affordable housing incentive program: (1) in
conjunction with an 100% affordable housing project; (2) subject to issuance of a conditional
use permit in accord with Chapter 18.76 (Permits and Approvals); and (3) provided that the
uses are limited to the ground floor.
(h) Development Standards
The following development standards shall apply to projects subject to the AH affordable
housing incentive program in lieu of the development standards for the underlying zoning
district, except where noted below:
Table 1
Development Standards
AH Incentive Program(1)
Minimum Site Specifications Subject to regulations in:
Site Area (ft 2)
None required
Site Width (ft)
Site Depth (ft)
Minimum Setbacks
Setback lines imposed by a
special setback map
pursuant to Chapter 20.08
of this code or imposed to
create required effective
sidewalk widths apply
*NOT YET APPROVED*
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Front Yard (ft) Same as underlying district
or 10 ft. (whichever is less)
Rear Yard (ft) Same as underlying district
Rear Yard abutting residential
zoning district (ft)
Same as underlying district
Interior Side Yard if abutting
residential zoning district (ft)
Same as underlying district
Street Side Yard (ft) Same as underlying district
or 8 ft. (whichever is less)
Build-to-Lines Same as underlying district
Permitted Setback Encroachments Same as underlying district
Maximum Site Coverage None Required
Minimum Landscape/Open Space
Coverage
20%(2)
Minimum Usable Open Space
25 sq ft per unit for 5 or
fewer units(2), 50 sq ft per
unit for 6
units or more (2)
Maximum Height (ft)
General Standard (Projects income
restricted <120% of AMI)
50'(4)
Lower Income Standard (Projects
income restricted <60% of AMI)
60’(3)(4)
Portions of a site within 50 ft of a
residential district (other than an
RM-40 or PC zone) R1, R-2, RMD,
RM-20, or RM-30 zoned property
35' (5)
18.08.030
Daylight Plane for lot lines
abutting a low density residential
district (RE, R1, NV-R1, R2, NV-R2,
RMD)
Unless the underlying
zoning district standard is
more permissive, the
daylight plane shall be as
follows:
Initial height: 16 feet,
measured at the property
line
Slope: 45 degrees
Maximum Residential
Density (net)
None Required(3)
*NOT YET APPROVED*
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Maximum Residential Floor
Area Ratio (FAR) - Residential
Portion of a Project
2.4:1(3)
Maximum Non-Residential
FAR
0.4:1
Maximum Total FAR 2.4:1(3)
Minimum Vehicle Parking
None, within one-half mile
of a major transit stop or
one-quarter mile of a high-
quality transit corridor.
0.5 per unit, all other
locations.
The Director may modify this
standard based on findings
from a parking study that
show fewer spaces are
needed for the project.
The required parking ratio
for special needs housing
units, as defined in Section
51312 of the Health and
Safety Code shall not exceed
0.3 spaces per unit.
Adjustments to the
required ratios shall be
considered per Chapter
18.52 (Parking).
For Commercial Uses, See
Chapters 18.52 and 18.54
(Parking).
TDM Plan
A transportation demand
management (TDM) plan
shall be required pursuant to
Section 18.52.050(d) and
associated administrative
guidelines
18.52.050(d)
Notes:
(1) These developments shall be designed and constructed in compliance with the
objective design standards in Section 18.24 and meet the performance criteria, general
standards, and exceptions outlined in Chapter 18.40. Developments that elect to deviate from
one or more objective standards in Chapter 18.24 shall meet the context-based design criteria
outlined in Section 18.13.060 for residential-only projects and projects in residential, public
facilities, and office, research, and manufacturing zones, Section 18.16.090 for mixed use
projects in the CN, CC, and CS districts, and Section 18.18.110 for mixed use projects in the CD
district.
(2) Landscape coverage is the total area of the site covered with landscaping as defined in
Chapter 18.04. For the purposes of this Chapter, areas provided for usable open space may be
*NOT YET APPROVED*
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counted towards the landscape site coverage requirement. Landscape and open space areas
may be located on or above the ground level, and may include balconies, terraces, and
rooftop gardens.
(3) Except on R-1 opportunity sites (owned by faith-based institutions) where maximum FAR
of 2.0; maximum residential density of 50 du/ac; and maximum building height of 50 feet
apply, regardless of income level.
(4) Mixed-use projects that include ground-floor retail or retail-like uses shall receive an
additional 5 feet of building height.
(5) Distance shall be measured from the property line of the subject site. The Planning
Director may recommend a waiver from the transitional height standard.
SECTION 4. 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 hereby amended as follows (additions underlined; deletions struck-through; unchanged
text omitted by bracketed ellipses):
18.13.040 Development Standards
(a) Site Specifications, Building Size and Bulk, and Residential Density
The site development regulations in Table 2 shall apply in the multiple-family residence
districts, 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 the regulations set forth in Chapter 18.76, and the objective design
standards set forth in Chapter 18.24. Except that s Sites designated as Housing Element
Opportunity Sites shall meet the development standards specified in Chapter Section
18.14.020 and projects utilizing the Housing Incentive Program or Affordable Housing
Incentive Program shall meet the development standards specified in Sections 18.14.030 and
18.14.040, respectively.
[. . .]
SECTION 5. Section 18.16.060 (Development Standards) of Chapter 18.16 (Neighborhood,
Community, and Service Commercial (CN, CC and CS) 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)::
18.16.060 Development Standards
[. . .]
(b) Mixed Use and Residential
Table 4 specifies the development standards for new residential mixed use developments and
*NOT YET APPROVED*
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residential developments. These developments shall be designed and constructed in
compliance with the following requirements and the objective design standards in Chapter
18.24, except that sites designated as Housing Element Opportunity Sites shall meet the
development standards as modified in Chapter 18.14.020 and projects utilizing the Housing
Incentive Program or Affordable Housing Incentive Program shall meet the development
standards specified in Sections 18.14.030 and 18.14.040, respectively. Non-Housing
Development Projects and Housing Development Projects that elect to deviate from one or
more objective standards in Chapter 18.24 shall meet 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.
[. . .]
(c) Exclusively Residential Uses
Exclusively residential uses are generally prohibited in the CN, CS, CC(2) and CC zone districts,
except on housing inventory sites identified in the Housing Element, subject to the standards in
Section 18.16.060(b), and on CS and CN sites on El Camino Real and CC(2) sites, subject to the
following.
(1) On CS and CN sites on El Camino Real and on CC(2) sites, where the retail shopping (R)
combining district or the retail preservation provisions of Section 18.40.180 do not apply,
exclusively residential uses are allowed subject to the standards in Section 18.16.060(b) and
the following additional requirements:
(A) Residential units shall not be permitted on the ground-floor of development
fronting on El Camino Real unless set back a minimum of 15 feet from the property
line or the 12-foot effective sidewalk setback along the El Camino Real frontage,
whichever is greater; for projects on Housing opportunity sites, or those utilizing the
Housing Incentive Program or Affordable Housing Incentive Program, these setbacks
may be modified by the standards in Chapter 18.14. Common areas, such as lobbies,
stoops, community rooms, and work-out spaces with windows and architectural
detail are permitted on the ground-floor El Camino Real frontage.
(B) Parking shall be located behind buildings or below grade, or, if infeasible,
screened by landscaping, low walls, or garage structures with architectural detail.
(C) Combining district use regulations and design and development standards shall
not apply to exclusively residential projects on Housing Element opportunity sites
designated to accommodate lower income households, and may be limited for sites
utilizing the Housing Incentive Program or Affordable Housing Incentive Program.
See Section 18.14.020 Chapter 18.14 for details.
[. . .]
(k) Housing Incentive Program Reserved
(1) The Director may waive the residential floor area ratio (FAR) limit and the maximum
site coverage requirement for a project that is reviewed by the Architectural Review Board,
*NOT YET APPROVED*
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if the Director finds that the project with such waiver or waivers is consistent with the
required architectural review findings in Section 18.76.020. The Director may only waive
these development standards in the following areas and subject to the following
restrictions:
(A) For an exclusively residential or mixed-use project in the CC(2) zone or on CN or
CS zoned sites on El Camino Real. In no event shall the Director approve a
commercial FAR that exceeds the standard in Table 4 of Section 18.16.060(b) or a
total FAR (including both residential and commercial FAR) in excess of 2.0 in the
CC(2) zone or 1.5 in the CN or CS zone.
(B) For an exclusively residential or mixed-use project on CS zoned sites on San
Antonio Road between Middlefield Road and East Charleston Road. In no event shall
the Director approve a commercial FAR that exceeds the standard in Table 4 of
Section 18.16.060(b) or a total FAR (including both residential and commercial FAR)
in excess of 2.0.
(2) The Director may waive any development standard including parking for a project that
is reviewed by the Architectural Review Board, if the Director finds that the project with
such waiver or waivers is consistent with the required architectural review findings in
Section 18.76.020. The Director may only waive these development standards in the
following areas and subject to the following restrictions:
(A) For a 100% affordable housing project in the CC(2) zone or on CN or CS zoned
sites on El Camino Real;
(B) For a 100% affordable housing project on CS zoned sites on San Antonio Road
between Middlefield Road and East Charleston Road.
(C) In no event shall the Director approve development standards more permissive
than the standards applicable to the Affordable Housing (AH) Combining District in
Chapter 18.30(J). A "100% affordable housing project" as used herein means a
multiple-family housing or mixed-use project in which the residential component
consists entirely of affordable units, as defined in Section 16.65.020, available only
to households with income levels at or below 120% of the area median income, as
defined in Section 16.65.020, and where the average household income does not
exceed 60% of the area median income level, except for a building manager's unit.
(3) This program is a local alternative to the state density bonus law, and therefore, a
project utilizing this program shall not be eligible for a density bonus under Chapter 18.15
(Residential Density Bonus).
[. . .]
SECTION 6. 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 hereby amended
as follows (additions underlined; deletions struck-through; unchanged text omitted by bracketed
ellipses):
18.18.060 Development Standards
*NOT YET APPROVED*
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[. . .]
(b) Mixed Use and Residential
Table 3 specifies the development standards for new residential mixed use developments and
residential developments. Housing Development Projects shall be designed and constructed
in compliance with the following requirements and the objective design standards in Chapter
18.24, except that sites designated as Housing Element Opportunity Sites shall meet the
development standards as modified in Chapter 18.14.020 and projects utilizing the Housing
Incentive Program or Affordable Housing Incentive Program shall meet the development
standards specified in Sections 18.14.030 and 18.14.040, respectively. Non- Housing
Development Projects and Housing Development Projects that elect to deviate from one or
more objective standards in Chapter 18.24 shall meet 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:
[. . .]
(l) Reserved Housing Incentive Program
(1) For an exclusively residential or residential mixed-use project in the CD-C zone, the
Director may waive the residential floor area ratio (FAR) limit after the project with the
proposed waiver is reviewed by the Architectural Review Board, if the Director finds that
the project exceeding the FAR standard is consistent with the required architectural
review findings. In no event shall the Director approve a commercial FAR in excess of 1.0
or a total FAR (including both residential and commercial FAR) in excess of 3.0. Nor shall
the use of transferable development rights under Section 18.18.080 be allowed to cause
the site to exceed a FAR of 3.0.
(2) For a 100% affordable housing project in the CD-C zone, the Director may waive any
development standard including parking after the project with the proposed waiver or
waivers is reviewed by the Architectural Review Board, if the Director finds that a project
with such waiver or waivers is consistent with the required architectural review findings.
In no event shall the Director approve a FAR in excess of 3.0 or approve other
development standards more permissive than the standards applicable to the Affordable
Housing (AH) Combining District in Chapter 18.30(J). A "100% affordable housing project"
as used herein means a multiple-family housing or mixed-use project in which the
residential component consists entirely of affordable units, as defined in Section
16.65.020 of this code, available only to households with income levels at or below 120%
of the area median income, as defined in Section 16.65.020, and where the average
household income does not exceed 60% of the area median income level, except for a
building manager's unit.
(3) This program is a local alternative to the state density bonus law, and therefore, a
project utilizing this program shall not be eligible for a density bonus under Chapter 18.15
(Residential Density Bonus).
[. . .]
*NOT YET APPROVED*
15
0160170_KB2_20250306_AY16
SECTION 7. Section 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):
18.20.040 Site Development Standards
[. . .]
(b) Development Standards for Exclusively Residential Uses
Residential uses shall be permitted in the MOR, RP, RP(5), ROLM, ROLM(E), and GM zoning
districts, subject to the following criteria.
[. . .]
(6) ROLM District. All multi-family development in the ROLM zoning district shall be
permitted subject to the provisions above in 18.20.040(b)(2), approval of a conditional use
permit, and compliance with the development standards prescribed for the RM-30 zoning
district, except for sites designated as Housing Element Opportunity Sites or Focus Areas,
which are regulated by Chapter 18.14.020. Sites designated as Housing Element
Opportunity Sites or Focus Areas may also elect to utilize the Housing Incentive Program or
Affordable Housing Incentive Program, in which case they shall meet the development
standards specified in Sections 18.14.030 and 18.14.040, respectively.
(7) GM District. All residential development is prohibited in the GM zoning district, except
for sites designated as Housing Element Opportunity Sites or Focus Areas, which are
regulated by Chapter 18.14.020. Sites designated as Housing Element Opportunity Sites or
Focus Areas may also elect to utilize the Housing Incentive Program or Affordable Housing
Incentive Program, in which case they shall meet the development standards specified in
Sections 18.14.030 and 18.14.040, respectively.
(8) Combining Districts. Combining district use regulations and design and development
standards shall not apply to exclusively residential projects on Housing Element opportunity
sites designated to accommodate lower income households, and may be limited for sites
utilizing the Housing Incentive Program or Affordable Housing Incentive Program. See
Section 18.14.020 Chapter 18.14 for details.
(c) Development Standards for Mixed (Residential and Nonresidential) Uses in the MOR,
ROLM, ROLM(E), RP, and RP(5) Zoning Districts
Mixed (residential and nonresidential) uses shall be permitted in the MOR, ROLM, ROLM(E), RP,
and RP(5) zoning districts, subject to the following criteria:
(1) It is the intent of these provisions that a compatible transition be provided from lower
density residential zones to higher density residential, non-residential, or mixed use zones.
The Village Residential development type should be evaluated for use in transition areas
and will provide the greatest flexibility to provide a mix of residence types compatible with
*NOT YET APPROVED*
16
0160170_KB2_20250306_AY16
adjacent neighborhoods.
(2) New sensitive receptor land uses shall not be permitted within 300 feet of a Hazardous
Materials Tier 2 or Tier 3 use. Existing sensitive receptors shall be permitted to remain,
consistent with the provisions of Chapter 18.70 (Nonconforming Uses and Noncomplying
Facilities).
(3) ROLM(E) District. Mixed (residential and nonresidential) development in the ROLM(E)
zoning district shall be permitted, subject to the provisions above in 18.20.040(c)(2),
approval of a conditional use permit, determination that the nonresidential use is allowable
in the district and that the residential component of the development complies with the
development standards prescribed for the RM-20 zoning district. The maximum floor area
ratio (FAR) for mixed use development is 0.3 to 1.
(4) ROLM District. Mixed (residential and nonresidential) development in the ROLM zoning
district shall be permitted, subject to the provisions above in 18.20.040(c)(2), approval of a
conditional use permit, determination that the nonresidential use is allowable in the district
and that the residential component of the development complies with the development
standards prescribed for the RM-30 zoning district. The maximum floor area ratio (FAR) for
mixed use development is 0.4 to 1. Except that s Sites designated as Housing Element
Opportunity Sites or Focus Areas shall meet the development standards specified in
Chapter 18.14.020 and projects utilizing the Housing Incentive Program or Affordable
Housing Incentive Program shall meet the development standards specified in Sections
18.14.030 and 18.14.040, respectively.
(5) GM District. Mixed use (residential and nonresidential) development is prohibited in
the GM zoning district, except for sites designated as Housing Element Opportunity Sites or
Focus Areas, which are regulated by Chapter 18.14.020. Sites designated as Housing
Element Opportunity Sites or Focus Areas may also elect to utilize the Housing Incentive
Program or Affordable Housing Incentive Program, in which case they shall meet the
development standards specified in Sections 18.14.030 and 18.14.040, respectively.
In computing residential densities for mixed (residential and nonresidential) uses, the density
calculation for the residential use shall be based on the entire site, including the nonresidential
portion of the site.
[. . .]
SECTION 8. Chapter 18.32 (Affordable Housing Incentive Program) of Title 18 (Zoning) of the Palo
Alto Municipal Code is deleted in its entirety.
SECTION 9. Section 18.40.180 (Retail Preservation) 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; and unchanged text omitted by bracketed ellipses):
18.40.180 Retail Preservation
[. . .]
*NOT YET APPROVED*
17
0160170_KB2_20250306_AY16
(c) Waivers and Adjustments; and Exemptions.
[. . .]
(4) Exemptions. The following uses shall be exempt or partially exempt from the
provisions of this Section 18.40.180, as provided below:
(A) A 100% affordable housing project not within the Ground Floor (GF) and/or Retail
(R) combining districts nor El Camino Real Node area as depicted in Figure 5on a
site abutting El Camino Real. A "100% affordable housing project" as used herein
shall have the same meaning as provided in Section 18.14.040(c).means a multiple-
family housing project consisting entirely of affordable units, as defined in Section
16.65.020 of this code, available only to households with income levels at or below
120% of the area median income, as defined in Chapter 16.65, except for a
building manager's unit.
(B) A 100% affordable housing project on a site abutting El Camino Real in the CN and
CS zone districts outside the Retail (R) combining district. A "100% affordable
housing project" as used herein shall have the same meaning as provided in
Section 18.14.040(c).means a multiple-family housing project consisting entirely of
affordable units, as defined in Section 16.65.020 of this code, available only to
households with income levels at or below 120% of the area median income, as
defined in Chapter 16.65, and where the average household income does not
exceed 80% of the area median income level, except for a building manager's unit.
(C) A residential project located on a Housing Element Opportunity Site listed in
Appendix D of the Housing Element, except for projects located within an El
Camino Real Node area, as depicted in Figure 5, that utilize the Housing Incentive
Program to exceed the realistic capacity estimates identified in Appendix D of the
Housing Element.
(CD) A high-density residential or mixed-use project in the CS zone district, but not
within the Ground Floor (GF) or Retail (R) combining districts, shall be required to
replace only up to 1,500 square feet of an existing retail or retail-like use and shall
be exempt from minimum vehicle parking requirements pursuant to Chapter 18.52
(Table 1) for this retail or retail-like floor area. For the purposes of this partial
exemption, high-density shall mean 30 or more dwelling units per acre. This
reduction in retail square footage and minimum vehicle parking requirements shall
not apply for a site within the Ground Floor (GF) or Retail (R) combining districts, or
within an El Camino Real Retail Node area, unless the site is a Housing Element
opportunity site, as depicted in Figure 5
(E) The El Camino Real Node map in Figure 5 may be updated by resolution of the City
Council or by administrative regulation issued by the Director of Planning and
Development Services.
Figure 5: El Camino Real Retail Node Areas
*NOT YET APPROVED*
18
0160170_KB2_20250306_AY16
SECTION 10. 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 11. 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
adequately analyzed the environmental impacts of the Housing Element, including the Programs
implemented by this ordinance.
//
//
//
//
*NOT YET APPROVED*
19
0160170_KB2_20250306_AY16
SECTION 12. 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 AS TO CONTENT:
Assistant City Attorney City Manager
Director of Planning and
Development Services
X
X
X
X
Focus Area Node
North Ventura CAP
Interim Nodes
California Node
Triangle Node
StanfordUniversity
Mountain View
Los Altos
Yale Street
Jacaranda Lane
Sherman
Avenue
El Camino Real
Orme Street
Bryant Street
Ramos Way(Private)
Hanover Street
Columbia Street
Deodar Street
Redwood Circle
Margarita Avenue
Hansen Way
Lambert Avenue
Paradise Way
Fernando AvenueOlive Avenue
Cambridge
Avenue
Ventura AvenueGrant
Avenue
Matadero Avenue
Maybell Avenue
Curtner Avenue
Oregon Avenue
Wilton
Avenue
Barron Avenue
High Street
RickeysWay(Private)
Whitclem Drive
Cowper Street
Bowdoin Street
La Donna Street
Whitsell Street
Glenbrook Drive
Alma Street
McGregorWay
Lane 66
Laguna Avenue
Stanford Avenue
La Jennifer
Way Amaranta Avenue
Terman Drive
Gary Court
Arastradero Road
WrightPlace
Ramona Street
Miller Avenue
El CentroStreet
La Calle
Loma Verde Avenue
MackayDrive
Creekside Drive
Suzanne Drive
Monroe Drive
PenaCourt
El CerritoRoad
Duluth
Circle
South Court
IrvenCourt
El Capitan
Place
Silva Avenue
Rincon
Circle
Waverley Street
Nelson
Court
Encina
Grande
Drive
Timlott
Lane
YnigoWay
Laguna
Oaks Place
Florales Drive
Vista
Avenue
Saint
Claire
Drive
Ely Place
DartmouthStreet
Los Palos
Place
Adobe
Place
ScrippsAvenue
WellesleyStreet
Amherst
Way
Park Boulevard
Cesano
Court
Nelson Drive
Josina Avenue
Cypress Lane (Private)
Kelly Way
McKellarLane
Charleston Road
CarlsonCourt
Campana Drive
ArbolDrive
MumfordPlace
SolanaDrive
Santa Rita Avenue
Washington
Avenue North California Avenue
Nevada
Avenue El Dorado Avenue
Wilkie Way
Georgia Avenue
Carolina Lane
Seale Avenue
Acacia
Avenue
CassWay
Ash Street
Colorado Avenue
LundyLane
El Verano Avenue
Campesino Avenue
College
Avenue
Drake Way
Los Robles Avenue
West Charleston Road
California Avenue
East Meadow Drive
Magnolia Drive
Alger Drive
OberlinStreet
La Selva Drive
DixonPlace
Thain Way
Page Mill Road
Cornell Street
Princeton Street
Harvard Street
Williams Street
Kipling Street
Verdosa Drive
El Carmelo Avenue
Scripps
Court
Pomona Avenue
OrindaStreet
Shauna
Lane
Emerson Street
Los PalosAvenue
BirchStreet
MaybellWay
La MataWay
StauntonCourt
Tennessee Lane
Duncan Place
CherryOaksPlace
Amherst Street
Chestnut
Avenue
SheridanAvenue
El Camino Way
Tioga
Court
Lindero
Drive
Shasta
Drive
Diablo
Court
Cerrito
Way
Ferne Avenue
Greenmeadow
Way
CarlsonCircle
Maureen
Avenue
Starr King
Circle
Dinah's
Court
Ilima Court
Cowper
Court
Juniper Lane(Private)
KingArthur'sCourt
Oregon Expressway
BakerAvenue
Silva
Court
Oxford Avenue
Marion
Avenue
AbelAvenue
San Jude
Avenue
Edlee Avenue
Miller
Court
Rinconada Avenue
Pepper
Avenue
Clemo Avenue
James
Road
CoulombeDrive
Manzana Lane
Rambow Drive
Parkside Drive
Fairmede
Avenue
Ilima Way
RuthelmaAvenue
Kendall
Avenue
Chimalus Drive
Laguna Way
Hubbartt Drive
Donald Drive
Paul Avenue
Cereza Drive
Roosevelt Circle
La Para Avenue
Roble Ridge (Private)
Willmar Drive
Ben
Lomond
Drive
PC-4637
PF
RM-30
CS CS
R-1
R-1 (10000)
CS (H)
RM-40
PF
RE
PC-2930 RM-15
PC-3023
CS
RM-30
CC(2)(R)
R-2
RM-30
RM-30RM-15
R-2
NV-R4
RM-30
GM
R-2
PF
RM-15
NV-MXH
NV-R3
RE
PF (AS3)
CN
RP (L)
CN
CS (AS1)
RP (L)
R-2
CS
RP (AS2)
RMD
CC(2)(R)(P)
R-2
R-2
R-2
RM-30RM-30
RM-30
CC (2)(R)
CC (2)(R)
CC (2)(R)PF (R)
PF (R)
PF(R)
PC-4127
RM-30
R-1 PF
RM-15 R-2
RM-15RM-15
RM-30
PF
PF
R-1 (10000)
R-2
RM-15
PC-4268PC-2224
PC-3028
PC-4354
PC-2293
CC
RM-15
NV-MXL
NV-R2
CSPC-4463
PF
RM-40
R-1
RM-15
RM-30
CN
R-1 (S)
R-2
R-1
PF
RM-15
RM-30
PF
PF
PC-2666PC-2666
RM-30
RM-40
R-1 (10000)
R-1
R-2
R-1
CN
RM-15CC(2)CC (2)PF
PF
PF
PFPF
PF
RMD (NP)
R-1
PF
RP
PF PF
R-2
RM-15
CS (H)
RM-30
PC-4190PC-3041
PF
RM-30
R-1
RM-30
PC-2218PC-2656
RM-15
PC-5116
RM-30 RM-15
PC-3133
PC-4511
RM-15
RM-30
R-1 (7000)
PF
RM-30RM-40
R-1 (S)CS (L)
PC-4448
CS
CS (L)
RM-40
RM-15
RM-30PC-5034
R-1
CC (2)(P)
NV-MXM
CS CS
CS (AD)
PC-4831
PC-4956
PC-2236
R-1 (7000)
R-1 (8000)
R-1(8000)
CN (GF/P)
PFPF (D)
R-2
R-1 (10000)
R-1 (8000)
R-1 (7000)(S)
R-1
R-1 (8000)(S)
R-1 (8000)RM-15
RM-15
PC-3036
CS
CS CS
CS (H)
RM-15
PF
RM-15
CN RM-30
PF
CN
PC-5069
RM-15CS (L)(D)
PTODRM-40
RM-40
CC(2)(R)
CC (2)(R)
CC (2)CC (2)
CC(2)
PF
R-1
PC-4753 NV-R1
NV-MXM
CS
NV-MXH
GM
NV-MXL
NV-PF
This map is a product of City of Palo Alto GIS
[
0 480 960240Feet
South El Camino Real
South El Camino Real Retail Nodes
Interim Nodes
Housing Element Sites
City Limit
Zone Districts
X Transportation Stations