Atherton City Council
December 15, 2022

AGENDA PACKET
Town of Atherton
City Council
DECEMBER 15,2022
SPECIAL MEETING
3:00 PM.

This meeting is being held virtually and in­person
Council Chambers
80 Fair Oaks Lane
Atherton, CA 94027
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This Agenda may not reflect the actual order of items.  The order of items is subject to change based on Council action.

SPECIAL MEETING
ROLL CALL – Polito, Hawkins­Manuelian, Lewis, Vice Mayor Widmer, Mayor DeGolia PUBLIC COMMENT –  Public comments can be made by teleconference or emailed directly to City Clerk, Anthony Suber at [email protected] (This portion of the meeting is reserved for persons wishing to address the Council on any item on the Special Meeting Agenda; no other business shall be considered. Each speaker may address the Council once for a limit of three minutes.) STUDY SESSION

1. REVISIONS TO THE DRAFT HOUSING ELEMENT IN RESPONSE TO HCD

COMMENTS
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Town of Atherton City Council Special Meeting Agenda – December 15, 2022

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ROLL CALL – Polito, Hawkins­Manuelian, Lewis, Vice Mayor Widmer, Mayor DeGolia PUBLIC COMMENT –  Public comments can be made by teleconference or emailed directly to City Clerk, Anthony Suber at [email protected] (This portion of the meeting is reserved for persons wishing to address the Council on any item on the Special Meeting Agenda; no other business shall be considered. Each speaker may address the Council once for a limit of three minutes.) STUDY SESSION

1. REVISIONS TO THE DRAFT HOUSING ELEMENT IN RESPONSE TO HCD

COMMENTS
Report: Lisa Costa Sanders, Planning Consultant
Recommendation: Provide specific programmatic and policy direction to staff and consultants on the primary housing programs and policies to include in the next responsive iteration of the Draft Housing Element.

Description: This item will involve a Council discussion and direction will be provided on the Draft Housing Element
COUNCIL REPORTS/COMMENTS

ADJOURN
Town of Atherton City Council Special Meeting Agenda – December 15, 2022

Item No. 1
Town of Atherton
CITY COUNCIL STAFF REPORT – STUDY SESSION
TO: HONORABLE MAYOR AND CITY COUNCIL
THROUGH: GEORGE RODERICKS, CITY MANAGER
FROM: LISA COSTA SANDERS, PLANNING CONSULTANT
DATE: DECEMBER 15, 2022
SUBJECT: REVISIONS TO THE DRAFT HOUSING ELEMENT IN RESPONSE TO

HCD COMMENTS

RECOMMENDATION
Provide specific programmatic and policy direction to staff and consultants on the primary housing programs and policies to include in the next responsive iteration of the Draft Housing Element.

BACKGROUND
All California cities and counties are required to accommodate their fair share of regional housing need in its General Plan. The next Housing Element cycle covers the period of 2023 through 2031 and is required to be adopted by January 31, 2023.

The Final RHNA for the Bay Area (https://abag.ca.gov/sites/default/files/documents/2021- 12/Final_RHNA_Allocation_Report_2023-2031-approved_0.pdf) was adopted by the Association of Bay Area Governments (ABAG) Executive Board on December 16, 2021. The Town’s allocation for the period of 2023-2031 is as follows:

Income Level Housing Units
Very Low (less than 50% of area median income)
Max income of $63,950 for single person to $91,350 for family of 4 94 Low (50% - 80% of area median income)
Max income of $102,450 for single person to $146,350 for family of 4 54 Moderate (80-120% of area median income)
Max income of $125,640 for single person to $179,520 for family of 4 56 Above Moderate (more than 120% of area median income) Market rate housing
144
Total 348
Draft Housing Element Update
December 15, 2022

The City Council held a joint session with the Planning Commission on April 28, 2021 to discuss the Housing Element process and provide direction to staff on potential strategies to consider.

The City Council, at its January 12, 2022, February 24, 2022 and March 16, 2022 meetings received update reports from Staff on the initial housing strategies and provided direction to staff. The Town hosted a Community Open House on April 26, 2022 from 5:00 p.m. until 7:00 p.m. at the Holbrook Palmer Park Pavilion to discuss potential strategies with the community and receive input. The City Council met on May 18, 2022 to refine the housing strategies and again on May 24, 2022 to provide additional direction on site selection.

The Draft Housing Element was released on June 10, 2022 for a 30-day public review and comment period. Following review of public comments, the City Council revised the Draft Housing Element programs including;
• removed the multi-family overlay zone;
• removed changes to the PFS zone relating to multi-family housing at school sites; and • expanded the ADU program
The revised Draft Housing Element was submitted to HCD on August 2, 2022. Staff and consultant met with HCD on October 14, 2022 to hear HCD’s preliminary comments. The Town received the HCD formal written comments on October 31, 2022. The City Council, at its November 2, 2022 study session discussed the HCD comments and requested additional information from the consultant team. The City Council, at its November 17, 2022 study session reviewed HCD comments line by line with legal citations and discuss responses.

The Draft Housing Element is available on the Town’s website:
https://www.ci.atherton.ca.us/DocumentCenter/View/10638/Atherton-Housing-Element-Draftto-HCD-8_2_2022 The purpose of this meeting is to review responses to HCD’s comments as incorporated in the Draft Housing Element and provide direction to staff and consultants.

ANALYSIS
The Town received the HCD comment letter October 31, 2022 included as Attachment 4. The Town’s consultant team prepared a matrix of the HCD comments with a reference the corresponding Housing Element section (Attachment 2) and a matrix with the legal citation for each HCD comment (Attachment 3).

Root Policy, the Affirmatively Furthering Fair Housing (AFFH) consultant with the 21 Elements Group, prepared draft responses relating to the AFFH comments. The Town’s consultant team prepared draft responses for a majority of the HCD comments and are working on a few remaining items. The Revised Draft Housing Element, included as Attachment 1, includes the draft responses in strikethrough and underline text. This is still a work in progress.

Draft Housing Element Update
December 15, 2022

Staff is seeking specific Council programmatic and policy direction related to housing programs, policies and potential site opportunities to include in the next iteration of the Draft Housing Element. These include direction on the Cal Water Bear Gulch Reservoir Site, School Sites and other sites previously considered by the City Council. Below is a discussion of potential modifications and multi-family sites.

Multifamily Housing on School and Facility Sites
• Bear Gulch Reservoir Site: The entire property is approximately 50-acres in area and includes the reservoir (occupying approximately 1/3 of the site), water tanks, pump stations, treatment plant, equipment buildings, offices and several residential units for staff. The site is owned by the California Water Service Company (Cal Water). The property is currently zoned Park and Open Space (POS). That zoning designation does not allow residential uses other than caretaker housing. There are two areas on the property that could accommodate new housing, the upper site near the water tanks and the lower portion of the property at the end of Reservoir Road.

1. Potential Housing Site No. 1: A 2-to-3-acre potential housing site is located on the higher elevations of the property, southwest of the reservoir with access to Moore Road and Woodside Road. At a density of 20-units per acre this potential site could yield approximately 40 to 60 dwelling units.

2. Potential Housing Site No. 2: A 5-to-7-acre potential housing site is located at the end of Reservoir Road. This is also the site of the Cal Water Corporation Yard. At a density of 20-units per acre this potential site could yield approximately 40 to 60 dwelling units The Draft Housing element submitted to HCD included a program to add 4 new housing units at the Bear Gulch property. This was supported by correspondence from Cal Water. It is recommended that the Town expand the discussion in the Housing Element with a program that would rezone the two portions of the Bear Gulch site as discussed above with a density of 20 units/acre. Designating two locations would provide Cal Water with flexibility in their feasibility and planning for housing based on other site improvements at the property. To accommodate residential development, the zoning would be modified as listed below:
• Rezone two sites on the Bear Gulch property to permit multifamily housing without discretionary review at a density of 20-units per acre. • Minimum required front setback – 30 feet.
• Maximum height – 4 stories or 48 feet.

The appropriate environmental analysis under the California Environmental Quality Act (CEQA) would be completed at time of rezoning. Cal Water would be required to complete any necessary infrastructure improvements and implement any identified mitigation measures with the new development, such as ingress and egress to Moore Road. It is recommended that the Draft Housing Element include both sites and plan for the development of 20 new housing units during this planning period.

Draft Housing Element Update
December 15, 2022

• Menlo College: Menlo College is a private 4-year college located at 1000 El Camino Real.

The college property contains 21.7 acres of land. The college property is divided into two parcels; the 21.0-acre main campus and a 0.7-acre parcel at 98 Leon Way, site of the College President’s home. The college property does not include Cartan Field nor Wunderlich Field, both owned jointly by Menlo School and Menlo College. The campus abuts the Victoria Manor residential subdivision to the south (R-1A Zoning), the MacBain Avenue residences to the west (R-1A Zoning), Alejandro Avenue to the north, and Menlo School to the south (PFS Zoning). The existing PFS Zoning District requires a conditional use permit for residential uses and allows multifamily residential uses by right (with the provision of very low and low-income units), subject to Planning Commission review of the location, size, proximity to heritage trees and environmental aspects of the project. There are seventeen existing buildings on the campus with a total floor gross area of approximately 307,700 square feet. The total building footprint area is 269,500 square feet and the existing floor area ratio is 28.5%. Based on discussions with the College President and review of site improvements, there are two viable locations on the property for multifamily housing as outlined below:

1. Potential Housing Site: The existing O’Brien surface parking lot at the southwest corner of El Camino Real and Alejandra Avenue is approximately 75,000 square feet (1.7 acres) in area. Construction of a multi-family housing project could occur on the site, with podium parking at ground level and 3 stories of housing above or a separate parking garage. Another option would be to build below grade parking. At 20 units per acre, 34 housing units could be developed. If the Town were to zone this property for 20 units per acre, the College would be able to apply State Density bonus provisions for additional housing units.

The College’s interest in development at this location satisfies a need for faculty and student housing. The College has expressed that student housing would be suite-based housing that would qualify as affordable housing for the purposes of the Town’s Housing Element.

2. Potential Housing Site: There are four residences located at the campus in WWII barracks that are currently utilized for faculty housing. These residences could be replaced with 30 apartment units, resulting in a net increase of 26 multi-family housing units.

Both housing sites would be located near a public transportation route (SamTrans bus route) and would therefore qualify for State mandated reduced parking provisions. To accommodate the new housing development, the zoning should be modified as listed below:
• Minimum required front setback – 30 feet.
• Maximum height – 4 stories or 48 feet.
• Allow residential uses by right with objective design standards Draft Housing Element Update
December 15, 2022

• Rezone to allow 20 units per acre
It is recommended that both sites on the Menlo College property be rezoned to allow multi-family housing by right with objective design standards, increased height and reduced setbacks to ensure the development is feasible. It is recommended that the Draft Housing Element plan for the development of 40 new multi-family units at the College property. The College President has indicated support for such a project and plans to submit a revised letter to the Town for inclusion in the Revised Housing Element. • Menlo School: Menlo School is a private school for grades 6 – 12 located at 50 Valparaiso Avenue. The school property contains 16.4 acres of land. It abuts the Victoria Manor residential subdivision to the east (R-1A Zoning), the Michaels Way residential subdivision to the west (R-1A Zoning) to the west, and Menlo College to the north (PFS Zoning). The school is also zoned PFS Zoning District. There are eleven existing buildings on the campus with a total floor gross area of 311,574 square feet.

1. Potential Housing Site No. 1: An approximate 56,000 square foot (1.28 acre) potential housing site is located in the southwest corner of the campus with frontage on Valparaiso Avenue and the school entry drive. A 75-foot setback for buildings higher than 22 feet is required by the zoning along the west property line. An emergency access road required by the Menlo Park Fire District exists within this 75-foot setback. At a density of 20- units per acre this potential site could yield approximately 25 dwelling units. Parking would need to be provided either below grade or in a structure.

2. Potential Housing Site No. 2: An approximate 44,000 square foot (1 acre) potential housing site is located in the southeast corner of the campus with frontage on Valparaiso Avenue and the school entry drive. A 75-foot setback for buildings higher than 22 feet is required by the zoning along the east property line. An emergency access road required by the Menlo Park Fire District exists within this 75-foot setback. At a density of 20- units per acre this potential site could yield approximately 20 dwelling units.

In order to accommodate a building of this density, the zoning for the two sites listed above should be modified as follows:
• Minimum required front setback – 30 feet (along Valparaiso) – no changes to setback adjacent to single family residential.
• Maximum height – 4 stories or 48 feet.
• Allow multi-family residential by right with objective design standards • Rezone to allow 20 units per acre
It is recommended that the Revised Housing Element plan for 20 new units at Menlo School.

The housing sites are shown on the Menlo School Master Plan and have support for development by the School.

Multifamily Housing on Private Property
Draft Housing Element Update
December 15, 2022

It is recommended that the Town reconsider the multifamily overlay zone for private properties with a density of 20 units per acre, heights up to 40’ and adequate setbacks to accommodate the maximum density. Multifamily housing will be allowed by right, provided the project complies with objective design standards. Analysis under the California Environmental Quality Act (CEQA) will be completed with the zoning adoption and before consideration of each project.

The developer will be required to upgrade an insufficient infrastructure and implement identified mitigation measures.

It is recommended the Town also adopt an Inclusionary Ordinance to require a minimum of 20% of the dwelling units be affordable. A deed restriction will assure the affordability of the units remain.
• 23 Oakwood: The site is 1.6 acres in area, located at the end of Oakwood Drive adjacent to the City of Redwood City. There is an existing single-family home on the site and the property owner has expressed interest in developing the site with townhouse units. The property has adequate access to an improved public right-of-way and is currently served with utilities. It is recommended that this site be reconsidered for inclusion in the Draft Housing Element with a minimum density of 20 units per acre by right. This density is recommended as it is the default density identified by HCD whereby further feasibility analysis is not required and the jurisdiction can assume affordable housing will be built. The added benefit to this site is the property owner interest in developing. If included in the Draft Housing Element as a multi-family housing site, the Town would be required to rezone the property within one year of the adoption of the Housing Element. Rezoning of the site will include community outreach and analysis under the California Environmental Quality Act (CEQA) and will include mitigation measures to address any identified impacts. The developer will be required to upgrade any insufficient infrastructure and implement the CEQA mitigation measures. The site zoning will include height limits, setbacks, parking standards, objective design standards and landscape screening requirements to reduce impact to adjacent residences.

It is recommended that the Draft Housing Element include this site and plan for the development of 32 new multi-family housing units during this planning period. • Bay Road: The Council previously identified properties along Bay Road for a new multifamily overlay zone.

Address Lot Size Density Development
Potential*
264 Bay Road 0.91 acre 20 units per acre 18 housing units 296 Bay Road 0.93 acre 20 units per acre 18 housing units 318 Bay Road 0.94 acre 20 units per acre 19 housing units 352 Bay Road 0.92 acre 20 units per acre 18 housing units 999 Ringwood 0.9 acre 20 units per acre 18 housing units

Draft Housing Element Update
December 15, 2022

If the properties were consolidated the combined 4.6 acres would yield up to 92 units. If developed separately the yield would be up to 91 units. It is recommended that these sites be included in the Revised Housing Element without a planned production of units during this cycle.

A resident with development experience suggested a subdivision multifamily development prototype that could be applied to an Atherton city block modeled on a Brownstone Development concept. The concept was shared with members of the Council by the resident.

Staff includes this option for discussion by the Council as an alternative to an overlay zone as described above. The Brownstone Development concept consists of subdividing existing portions on both side of the street frontages with 45’ wide by 93’-100’ deep sized lots. The remaining portions of the existing acre lots would be reduced in size accordingly.

Brownstone style single family attached homes plus JADUs and 6-plex attached buildings would be developable on the site.

The sites would be developed with zero-lot lines for side setbacks, 8’ front setbacks and shared rear open space. A 36’ height limit would allow 3 floors over a garage with a requirement for an ADU adjacent to the garage.

The Bay Road properties could support a varietal combination of development including single-family homes, Brownstone homes, ADUs, and 6-plex below-market rate units. The approximate density at these locations would be 31 units per acre.

ADUs
Additional description of the new Accessory Dwelling Unit (including JADUs) program has been included in the Draft Housing Element including a monitoring program if anticipated production is not achieved. The Draft Housing Element as submitted projects the production of 35 ADUs per year over the next 8 years for a total of 280 new housing units. HCD commented that the production number should be reduced to 19 units per year (152 total new units) based on actual past production. Staff conducted an inventory of ADUs and JADUs approvals in the past two years and found an average of 27 new ADUs. Additional description has been added to the Draft Housing Element to describe the changes the Town made to ADU regulations to support the increased production realized in the last two years and assumed to continue.

It is recommended that the Town plan for 35 ADUs per year for a total of 280; however, it is anticipated that the ADU production numbers will be either reduced by HCD or restricted to moderate and above moderate categories to some degree. As such, additional production of units at the very low and low affordability categories is strongly recommended from other categories.

Lot Splits (SB9)
The Draft Housing Element described the new interest from property owners in developing properties under SB9 regulations. In most cases, these developments would result in three new residences on each existing lot. HCD stated that the Town needs to include additional analysis Draft Housing Element Update
December 15, 2022

including trends and market conditions that allow lot splits and identify each property that would be developed as well as developer/property owner interest. Unlike ADU production where the Town can show trends, HCD requires the Element list each property that is likely to develop under the SB 9 program. This is difficult to determine for future year production. Given that the Town has 11-12 inquiries on SB 9 and 6 properties at some stage of application, an average of 10-12 per year could indeed be realistic; but HCD will not accept a trend.

Staff will reach out to interested property owners and developers requesting letters of interest to include in the resubmittal to HCD. However, HCD will likely reduce the Town’s projections in this category. It is recommended that the Lot Split (SB 9) production be reduced from 96 units to 48 units. This section of the Housing Element has not yet been revised.

Summary of Proposed Housing Sites and Programs:

Very low - Low Mod Above Mod Total
ADUs 102 66 112 280
Lot Splits (SB9) 48 48
Vacant sites 10 10
Bear Gulch 10 10 20
Menlo College 20 20 40
Menlo School 10 10 20
23 Oakwood 6 26 32
Bay Road 0
Total 148 106 196 450
RHNA 148 56 144 348
In general, the Town’s housing production is anticipated to be strong over the next 8-year cycle and likely to exceed HCD requirements in the moderate and above moderate affordability categories. However, production at the very low and low affordability categories will be difficult to achieve and difficult to track. ADU production in these categories is shown at about 12-13 units per year. The units produced at 23 Oakwood, if project moves forward, would be deed restricted giving the Town 6 units if full density were developed. The units at Menlo College and Menlo School, if the projects move forward, would provide the next best source of affordability options. The Town does not have a buffer in the very low and low affordability category.

NEXT STEPS
Distributed neighborhood outreach meetings are currently being planned at several locations throughout Town (dates/times are to be determined). The meetings will be hosted by property owners and attended by a Council member and staff/consultants with invites to nearby residents.

These are intended to be more informal discussions with smaller groups on strategies to respond to HCD. A Community wide meeting will also be held in January 2023.

Given the limited timing, the consultant team will revise the document to include the direction provided by the Council at the December 15, 2022 meeting and respond to the remaining HCD Draft Housing Element Update
December 15, 2022

comments. The Draft Element will be provided to the Council at the January 11, 2023 Study Session; but it will also be the document that is used when discussions occur at the distributed outreach meetings in early January. Once the outreach meetings complete, a final public meeting will occur at the Planning Commission in January with a recommendation to the City Council for adoption. The Council will need to meet on or before January 31, 2023 at a Special Meeting to adopt and authorize submission of the Draft Housing Element to the State.

The Housing Element is required to be adopted by cities and counties by January 31, 2023, and the State then has 60 days in which to certify the Element as in compliance with State Law. If the Town’s Housing Element is still deemed non-compliant, HCD will provide an additional response letter with comments and the Town and HCD will begin a further dialogue and revision process to achieve certification.

The Town has 120-days from January 31, 2023 to obtain a certified Housing Element. Failure to achieve a certified Element within 120-days will shorten the time allotted from 3-years to 1-year for the Town to adopted land use and development changes proposed within the Housing Element. In addition, so long as the Town does not have a certified Housing Element, the Town is exposed to potential litigation or Builder’s Remedy development solutions.

PUBLIC NOTICE
Public notification was achieved by posting the City Council agenda, with this agenda item being listed, at least 72 hours prior to the meeting in print and electronically. Information about the project is also disseminated via the Town’s electronic News Flash and Atherton Online. There are approximately 1,200 subscribers to the Town’s electronic News Flash publications.

Subscribers include residents as well as stakeholders – to include, but not limited to, media outlets, school districts, Menlo Park Fire District, service providers (water, power and sewer), and regional elected officials.

ATTACHMENTS
• Attachment 1 - Draft Housing Element with Draft Responses to HCD • Attachment 2 - HCD Comment Matrix with Responses
• Attachment 3 – HCD Comment with Legal Citation
• Attachment 4 - HCD Comment Letter
• Attachment 5 – Public Comments Received as of 12.15.22 12:00 PM (Supplemental) • Town Housing Element Draft Update Website Link:
o Housing Element Draft Update |Website
Town of Atherton 2023-2031 Housing Element – DRAFT 1
August 2022
Table of Contents

3.100 INTRODUCTION

3.110 Purpose of the Housing Element 4

3.120 Definition of Income Categories 4

3.130 RHNA (Regional Housing Needs Allocation) 2023- 2031 6

3.140 Relation to Other Elements (including General Plan Consistency Analysis) 6

3.200 ASSESSMENT OF HOUSING NEEDS

3.210 Housing Needs Detailed Analysis 7

3.300 ATHERTON FAIR HOUSING ASSESSMENT

3.310 Introduction – What is Fair Housing? 12

3.320 Section Content and Organization 16

3.330 Fair Housing Enforcement and Outreach Capacity 19

3.340 Integration and Segregation 23

3.350 Access to Opportunity 28

3.360 Disparate Housing Needs 34

3.370 Site Inventory Analysis 40

3.380 Contributing Factors and Fair Housing Action Plan 40

3.400 HOUSING RESOURCES

3.410 Inventory of Sites Suitable for Residential Development 42

3.420 Analysis of Zoning that Encourages and Facilitates a Variety of Housing Types 49

3.430 Identification of Adequate Sites for Emergency Shelters 50

3.440 Identification of Adequate Sites for Transitional and Supportive Housing 50 ATTACHMENT 1
Town of Atherton 2023-2031 Housing Element – DRAFT 2
August 2022

3.450 Identification of Adequate Sites for Farm Worker Housing 50

3.460 Other Housing Resources 50

3.500 CONSTRAINTS ON HOUSING

3.510 Governmental Constraints Analysis 51

3.520 Non-Governmental Constraints Analysis 58

3.600 REVIEW OF 2015-22 HOUSING ELEMENT PERFORMANCE

3.610 Effectiveness of the Element 60

3.620 Progress in Implementation 60

3.630 Future Opportunities 61

3.700 HOUSING GOALS, QUANTIFIED OBJECTIVES AND POLICIES

3.710 GOAL: FACILITATE THE PRIVATE DEVELOPMENT OF HOUSING TO MEET A PORTION OF THE ABOVE MODERATE INCOME HOUSING NEED IDENTIFIED FOR ATHERTON 68

3.720 GOAL: USE ACCESSORY DWELLING UNITS TO MEET A SUBSTANTIAL PORTION OF THE TOWN’S MODERATE TO VERY LOW-INCOME HOUSING NEED. 68

3.730 GOAL: FACILITATE THE DEVELOPMENT OF FACULTY AND STUDENT HOUSING ON OR NEAR SCHOOL CAMPUSES TO MEET A PORTION OF THE MODERATE AND VERY LOWINCOME HOUSING NEED IDENTIFIED FOR ATHERTON 68

3.740 GOAL: FACILITATE THE DEVELOPMENT OF ADDITIONAL AFFORDABLE HOUSING AT THE CALWATER BEAR GULCH RESERVOIR SITE 69

3.750 GOAL: PROMOTE PRIVATE EFFORTS TO CONSERVE AND IMPROVE ATHERTON’S EXISTING HOUSING SUPPLY. 69

3.760 GOAL: ENCOURAGE SPECIAL CONSIDERATION TO THE MAINTENANCE AND EXPANSION

OF HOUSING OPPORTUNITIES FOR HANDICAPPED AND LOW AND MODERATE INCOME AND HOMELESS PERSONS. 69
ATTACHMENT 1
Town of Atherton 2023-2031 Housing Element – DRAFT 3
August 2022

3.770 GOAL: MEET THE NEEDS OF SENIORS, IN LIGHT OF THE PENDING GROWTH OF THIS POPULATION IN SAN MATEO COUNTY. 70

3.780 GOAL: CONTINUE TO PROMOTE HOUSING OPPORTUNITIES FOR ALL PERSONS

REGARDLESS OF RACE, SEX, MARITAL STATUS, ANCESTRY, NATIONAL ORIGIN OR COLOR 71 3.790 GOAL: SUPPORT EFFORTS TO AFFIRMATIVELY FURTHER FAIR HOUSING IN ATHERTON. 71

3.800 HOUSING PROGRAMS

3.810 New Construction, Conservation and Rehabilitation 74

3.820 Special Housing Needs 83

3.830 Consistency with State Requirements 86

3.840 Other Housing Programs 86

3.900 EFFORTS TO ACHIEVE COMMUNITY ENGAGEMENT 88
APPENDICES 91

1. 21 Elements Resident Survey Analysis, 4/14/2022

2. ABAG/MTC Housing Needs Data Report - Atherton

3. AFFH Atherton Map and Data Packet

4. San Mateo County-wide Housing Needs Final Report, 11/3/2021

5. Electronic Housing Element Site Inventory Form

6. Menlo College Faculty and Staff Housing Considerations ATTACHMENT 1
Town of Atherton 2023-2031 Housing Element – DRAFT 4
August 2022

3.000 HOUSING ELEMENT (2023-2031 UPDATE)

3.100 INTRODUCTION

3.110 Purpose of the Housing Element
The State of California Government Code1requires that all cities within the San Francisco Bay Area update the Housing Element of their General Plan by January 1, 2023. The purpose of this document is to meet this requirement by evaluating the existing and projected housing needs of all economic segments of Atherton, evaluating existing policies and programs aimed at the preservation, improvement and development of housing and where appropriate, identifying new priorities.

The contents of this update include an analysis of housing needs, statements of goals and policies, a schedule of programs and actions and an estimate of the number of housing units the Town expects to be developed, improved and maintained in the local housing stock. Programs and policies included in the existing Housing Element were evaluated and modified where necessary to reflect changing market conditions and policy priorities.

Atherton is a residential community of approximately 7,200 residents with a land area of approximately six square miles. The Town is bordered by Menlo Park, Woodside, Redwood City and unincorporated San Mateo County. Founded in the early 1920’s, Atherton is characterized by large lot residential land use, where minimum lot size is 1/3 to 1 acre throughout the Town. There is no commercial or industrial land use in Atherton.

There are eight schools in Town, three of which are private.

3.120 Definition of Income Categories
Since the determination of housing need is often discussed in terms of income categories, it is important to define the categories used in this update at the outset. The California Department of Housing and Community Development (HCD) has established household income categories based on a proportion of the area’s median family income as summarized below:

TABLE HE-1: HCD INCOME CATEGORIES DEFINED
Income Category Definitions
Acutely Low 0 – 15% of area median income
Extremely Low 15% - 30% of area median income
Very Low 30%-50% of area median income
1 § 65588(e)(2)
ATTACHMENT 1
Town of Atherton 2023-2031 Housing Element – DRAFT 5
August 2022
Lower2 50%-80% of area median income
Moderate 80%-120% of area median income
Above Moderate Above 120% of area median income
The income limits established by HCD for San Mateo County in 2021 are presented in Table HE-2.

TABLE HE-2: ANNUAL INCOME LIMITS BY HOUSEHOLD SIZE - 2021(US$) San Mateo County Income Limits (2021)
(
Number of Persons Per Household
(Maximum Income)
Income Category 1 2 3 4 5
Extremely Low $38,400 $43,850 $49,350 $54,800 $59,200
Very Low $63,950 $73,100 $82,250 $91,350 $98,700
Low Income $102,450 $117,100 $131,750 $146,350 $158,100 Median Income $104,700 $119,700 $134,650 $149,600 $161,550 Moderate Income $125,650 $143,600 $161,550 $179,500 $193,850 Source: HCD State Income Limits 2021 and State CDBG and HOME Income Limits TABLE HE-3: MONTHLY MAXIMUM AFFORDABLE HOUSING COST BY HOUSEHOLD SIZE – 2021 (US$)
San Mateo County Income Limits (2021)
Number of Persons Per Household
(Maximum Income)
Income Category 1 2 3 4 5
Extremely Low $960 $1,096 $1,234 $1,370 $1,480
Very Low $1,599 $1,828 $2,056 $2,284 $2,468
Low Income $2,561 $2,928 $3,294 $3,659 $3,953
Median Income $2,618 $2,993 $3,366 $3,740 $4,039
Moderate Income $3,141 $3,590 $4,039 $4,388 $4,846
Source: HCD State Income Limits 2013 and State CDBG and HOME Income Limits, calculations by Good City Company.
2 Term may also be used to mean 0% - 80% of AMI
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3.130 RHNA (Regional Housing Needs Allocation) 2023 - 2031 (6th Cycle) The Regional Housing Needs Allocation in the Bay Area is a process managed by ABAG (Association of Bay Area Governments) and MTC (Metropolitan Transportation Commission), whereby the housing needs for the Bay Area are distributed to the various County and city jurisdictions. The 2023 - 2031 period is the 6th RHNA cycle since the beginning of the process. The Town of Atherton has been assigned the allocations by income category, listed below for this cycle:

Very Low Income 94 dwelling units
Low Income 54 dwelling units
Moderate Income 56 dwelling units
Above Moderate Income 144 dwelling units

3.140 Relation to Other Elements (including General Plan Consistency Analysis) The Housing Element is closely related to the Land Use, Open Space and Circulation Elements. In the Housing Element, residential land use is translated into terms of household units to be accommodated in the future. Lands designated for residential use are identified in the Land Use Element; the location, site area and terrain suitable for housing is related to both open space and land use; and the capability of serving residential neighborhoods by an efficient circulation system is discussed in the Circulation Element.

State law requires that all elements of the general plan be consistent with each other.

The General Plan was reviewed to ensure that the goals and policies of this Housing Element are consistent with the other elements of the Town’s General Plan ATTACHMENT 1
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3.200 ASSESSMENT OF HOUSING NEEDS

3.210 Housing Needs Detailed Analysis
See Appendix for detailed Housing Needs Analysis.

3.211 Summary of Key Facts
People
● Population – Atherton’s population has been declining, unlike the rest of the Bay Area. While the Town’s population decreased by 2.3% from 2000-2020, both the county and the Bay Area’s populations have increased (by 9% and 15% respectively). In Atherton, this has been the result of almost complete buildout of the Town in accordance with the General Plan, aging population, and policies restricting land uses to low density residential and minimum lot sizes to 1 acre or ⅓ acre. This increase throughout the region is mostly due to natural growth (births minus deaths) and our strong economy drawing new residents to the region. ● Income – Atherton has a lower percentage of lower income households than the rest of the county and region, with 17% of households earning less than 80% of the Area Median Income (AMI)3 compared to 40% of households in San Mateo County and 39% of households in the Bay Area as a whole.
● Age – Community members in Atherton are overall older than they were in the past. The median age has increased from 45.2 in 2000 to 47 in 2019. In that year,

22.3% of the population was under 18 and 22.4% was over 65. ● Race/Ethnicity – Atherton is less diverse than the Bay Area as a whole. In 2019, 69% of the population was White, 21% was Asian, 4.4% was Latinx, and 0.8% was African American (see chart).
● Poverty – Currently, people of color in San Mateo County are more likely to experience poverty. The group with the highest poverty rate in Atherton is 3 The Area Median Income is the middle spot between the lowest and highest incomes earned.

The AMI for the county is $104,700 for a single person, $119,700 for a household of two and $149,600 for a family of four.

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Asian/Pacific Islander residents (5.3%). White (Hispanic and Non-Hispanic) residents have the lowest poverty rate (3.5%).4
Source: U.S. Census Bureau, American Community Survey
5-Year Data (2015-2019), Table B03002.

Jobs
● Employment – Generally, having a similar number of jobs and employed residents produces more benefits for a community, such as reducing traffic and climate impacts, and allowing people who work in the community to also live there. San Mateo County is job rich, meaning it has more jobs than employed residents. In contrast, Atherton is job poor. Based on ABAC/MTC data, there are 2,870 employed residents, and 2,726 jobs5in Atherton, resulting in a jobs-to-residentworkers ratio of 0.95. However, the estimation of jobs likely includes commercial enterprises within the nearby County-unincorporated area as the Town has no commercial land use. The Town believes that a more accurate number for jobs in Atherton is far less. Actual jobs in Atherton are limited to Town employees, public and private school employees, country club employees and CalWater employees. Unfortunately, there is no data readily available to more accurately represent local jobs.
● Unemployment – Jurisdictions throughout the region experienced a sharp rise in unemployment in 2020 due to impacts related to the COVID-19 pandemic, 4 Some demographic groups do not have reported poverty rates or may have over/underestimated rates as a result of having a limited sample for the particular group. 5 Employed residents in a jurisdiction are counted by place of residence (they may work elsewhere) while jobs in a jurisdiction are counted by place of work (they may live elsewhere).

American Indian or
Alaska Native, NonHispanic
0%
Asian / API, NonHispanic
21%
Black or African
American, NonHispanic
White, Non1%
Hispanic
69%
Other Race or
Multiple Races,
Non-Hispanic
5%
Hispanic
or Latinx
4%
Population by Race, 2019
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though with a general improvement and recovery in the later months of 2020. As of January 2021, Atherton’s unemployment rate was 6.1%, which was slightly lower than the regional unemployment rate of 6.6% and much lower than its pandemicrelated high rate of 14.6% in April 2020. Atherton’s pre-pandemic unemployment rate was 2.8% (January 2020). (Source: California Employment Development Department, Local Area Unemployment Statistics (LAUS), Sub-county areas monthly updates, 2010-2021).

Housing and Households
● New Homes Built – The number of new homes built in the Bay Area has not kept pace with the demand, resulting in longer commutes, increasing prices, and exacerbating issues of displacement and homelessness. The number of homes constructed in Atherton decreased 1% from 2010 to 2020, which is below the growth rate for San Mateo County and below the housing growth rate of the region’s housing stock during this time period (4% and 5% respectively). ● Home Prices and Rents –
Housing prices in Atherton are
unaffordable to most residents
and workers in the town and are
much less affordable than the
region as a whole. Given high
job growth and low housing
growth in the county, the cost of
housing in Atherton has
increased significantly in the
past decade:
o Sales Price – In 2020, the average sales price of a single-family home in Atherton was approximately $7,897,800. Home prices increased by 196% from 2010 to 2020.6
o Rental Prices – Rental prices increased by 60% from 2009 to 2019. The median rent in 2019 was $3,200. To rent a typical apartment without cost burden, a household would need to make $128,320 per year.7 ● Housing Type – In 2020, 98% of homes in Atherton were single family detached, 2% were single family attached, 0.2% were small multifamily (2-4 units), and 0% were 6 San Mateo Association of REALTORS Annual Reports 2010-2020 7 Note that contract rents may differ significantly from, and often being lower than, current listing prices.
$1,000,000
$3,000,000
$5,000,000
$7,000,000
$9,000,000
$11,000,000
Atherton Average Home Sales Price
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medium or large multifamily (5+ units). Moreover, Atherton’s housing consists of more detached single-family homes than the region as a whole (98% as compared to 52% in the Bay Area)
● Housing for Large Families - Large families are generally served by homes with 3 or more bedrooms, of which there are 2,093 units in Atherton (94% of the housing).

Among these 3+ bedroom units, 6% are renter-occupied and 94% are owneroccupied. ● Cost Burden – The U.S. Department of Housing and Urban Development (HUD) considers housing to be affordable for a household if the household spends less than 30% of its income on housing costs. A household is considered “costburdened” if it spends more than 30% of its monthly income on housing costs, while those who spend more than 50% of their income on housing costs are considered “severely cost-burdened.” In Atherton, 14% of households are cost burdened, while an additional 18% of households are severely cost burdened. ● Neighborhood Equity – Some neighborhoods are identified as “Highest Resource” or “High Resource” by the State of California based on a range of indicators such as access to quality schools, proximity to jobs and economic opportunities, low pollution levels, and other factors.8 However, neighborhoods don’t always receive an equitable share of these community resources and may be designated as “Low Resource” if they lack these amenities. Approximately 40% of residents in Atherton live in neighborhoods identified as “Highest Resource” or “High Resource”, while no residents live in areas identified by this research as “Low Resource”.
● Displacement & Gentrification – Displacement, or the inability of residents to afford to remain in their homes, is a major concern in the Bay Area due to increasing housing prices. Displacement has the most severe impacts on low- and moderateincome residents. When individuals or families are forced to leave their homes and communities, they lose their support network. A related concern is the impact of gentrification or exclusion—when neighborhoods have limited or no housing opportunities for low- and moderate-income residents. According to research from The University of California, Berkeley, no households in Atherton live in neighborhoods that are susceptible to or experiencing displacement, or in areas at risk of or undergoing gentrification. Low-income households are excluded from 8 For more information on the “opportunity area” categories developed by HCD and the California Tax Credit Allocation Committee, see this website:
https://www.treasurer.ca.gov/ctcac/opportunity.asp.

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virtually all of Atherton's neighborhoods due to prohibitive housing costs, except for within ADU’s located throughout Town.
● Special Housing Needs – Some population groups may have special housing needs such as mobility and accessibility barriers. In Atherton, 7.8% of residents have a disability of any kind and may require accessible housing. Additionally, 13% of Atherton households are larger households with five or more people, who likely need larger housing units with three bedrooms or more. Also, 5.4% of households are female-headed families, which are often at greater risk of housing insecurity, or being at risk of losing their home.

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3.300 ATHERTON FAIR HOUSING ASSESSMENT

3.310 Introduction – What is Fair Housing?
The State of California’s 2018 Assembly Bill (AB 686) requires that all public agencies in the state affirmatively further fair housing (AFFH) beginning January 1, 2019. Public agencies receiving funding from the U.S. Department of Housing and Urban Development (HUD) are also required to demonstrate their commitment to AFFH. The federal obligation stems from the fair housing component of the federal Civil Rights Act mandating federal fund recipients to take “meaningful actions” to address segregation and related barriers to fair housing choice.

AB 686 requires all public agencies to “administer programs and activities relating to housing and community development in a manner that affirmatively furthers fair housing, and take no action inconsistent with this obligation”9
AB 686 also makes changes to Housing Element Law to incorporate requirements to AFFH as part of the housing element and general plan to include an analysis of fair housing outreach and capacity, integration and segregation, access to opportunity, disparate housing needs, and current fair housing practices.

Affirmatively Furthering Fair Housing
“Affirmatively furthering fair housing” means taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws. The duty to affirmatively further fair housing extends to all of a public agency’s activities and programs relating to housing and community development. (Gov. Code, § 8899.50, subd. (a)(1).)”
Source: California Department of Housing and Community Development Guidance, 2021, page 14. 9 California Department of Housing and Community Development Guidance, 2021, page 9.

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History of segregation in the region. The United
States’ oldest cities have a history of mandating
segregated living patterns—and Northern
California cities are no exception. ABAG, in its
recent Fair Housing Equity Assessment, attributes
segregation in the Bay Area to historically
discriminatory practices—highlighting redlining
and discriminatory mortgage approvals—as
well as “structural inequities” in society, and
“self-segregation” (i.e., preferences to live near
similar people).

Researcher Richard Rothstein’s 2017 book The
Color of Law: A Forgotten History of How Our
Government Segregated America chronicles
how the public sector contributed to the
segregation that exists today. Rothstein
highlights several significant developments in
the Bay Area region that played a large role in
where the region’s non-White residents settled.

Pre-civil rights San Mateo County faced resistance to racial integration, yet it was reportedly less direct than in some Northern California communities, taking the form of “blockbusting” and “steering” or intervention by public officials. These local discriminatory practices were exacerbated by actions of the Federal Housing Administration which excluded low-income neighborhoods, where the majority of people of color lived, from its mortgage loan program.

According to the San Mateo County Historical Association. San Mateo County’s early African Americans worked in a variety of industries, from logging, to agriculture, to restaurants and entertainment. Expansion of jobs, particularly related to shipbuilding during and after World War II attracted many new residents into the Peninsula, including the first sizable migration of African Americans. Enforcement of racial covenants after the war forced the migration of the county’s African Americans into neighborhoods where they were allowed to occupy housing—housing segregated into less desirable areas, next to highways, and concentrated in public housing and urban renewal developments.

The private sector contributed to segregation through activities that discouraged (blockbusting) or prohibited (restrictive covenants) integrated neighborhoods. The This history of segregation in
the region is important not
only to understand how
residential settlement
patterns came about—but,
more importantly, to explain
differences in housing
opportunity among residents
today. In sum, not all
residents had the ability to
build housing wealth or
achieve economic
opportunity. This historically
unequal playing field in part
determines why residents
have different housing needs
today.

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segregatory effect of blockbusting activities is well-documented in East Palo Alto. In 1954, after a White family in East Palo Alto sold their home to an African American family, the then-president of the California Real Estate Association set up an office in East Palo Alto to scare White families into selling their homes (“for fear of declining property values”) to agents and speculators. These agents then sold these homes at over-inflated prices to African American buyers, some of whom had trouble making their payments. Within six years, East Palo Alto—initially established with “whites only” neighborhoods—became 82% African American. The FHA prevented re-integration by refusing to insure mortgages held by White buyers residing in East Palo Alto.

Throughout the county, neighborhood associations and city leaders attempted to thwart integration of communities. Although some neighborhood residents supported integration, most did not, and it was not unusual for neighborhood associations to require acceptance of all new buyers. Builders with intentions to develop for all types of buyers (regardless of race) found that their development sites were rezoned by planning councils, required very large minimum lot sizes, and\or were denied public infrastructure to support their developments or charged prohibitively high amounts for infrastructure.

The timeline of major federal Acts and court decisions related to fair housing choice and zoning and land use appears on the following page.

As shown in the timeline, exclusive zoning practices were common in the early 1900s.

Courts struck down only the most discriminatory and allowed those that would be considered today to have a “disparate impact” on classes protected by the Fair Housing Act. For example, the 1926 case Village of Euclid v. Amber Realty Co. (272 U.S. 365) supported the segregation of residential, business, and industrial uses, justifying separation by characterizing apartment buildings as “mere parasite(s)” with the potential to “utterly destroy” the character and desirability of neighborhoods. At that time, multifamily apartments were the only housing options for people of color, including immigrants.

The Federal Fair Housing Act was not enacted until nearly 60 years after the first racial zoning ordinances appeared in U.S. cities. This coincided with a shift away from federal control over low-income housing toward locally-tailored approaches (block grants) and market-oriented choice (Section 8 subsidies)—the latter of which is only effective when adequate affordable rental units are available.

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Major Public and Legal Actions that Influence Fair Access to Housing ATTACHMENT 1
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3.320 Section Content and Organization
This Fair Housing Assessment follows the April 2021 State of California State Guidance for AFFH. The study was conducted as part of the 21 Elements process, which facilitates the completion of Housing Elements for all San Mateo County jurisdictions.

Section 3.330. Fair Housing Enforcement and Outreach Capacity reviews lawsuits/enforcement actions/complaints against the jurisdiction; compliance with state fair housing laws and regulations; and jurisdictional capacity to conduct fair housing outreach and education.

Section 3.340. Integration and Segregation identifies areas of concentrated segregation, degrees of segregation, and the groups that experience the highest levels of segregation
Section 3.350. Access to Opportunity examines differences in access to education, transportation, economic development, and healthy environments.

Section 3.360. Disparate Housing Needs identifies which groups have disproportionate housing needs including displacement risk.

Section 3.370. Site Inventory Analysis provides an analysis of sites identified to meet RHNA obligations for their ability to affirmatively further fair housing.

Section 3.380. Contributing Factors and Fair Housing Action Plan identifies the primary factors contributing to fair housing challenges and the plan for taking meaningful actions to improve access to housing and economic opportunity.

Fair Housing Appendices
◼ Resident survey results—findings from a survey of San Mateo County residents on their experience finding and remaining in housing
◼ Disparate Access to Educational Opportunities—findings from a countywide analysis of access to education and educational outcomes by protected class. ◼ State Fair Housing Laws and Regulations—summary of key state laws and regulations related to mitigating housing discrimination and expanding housing choice
◼ Fair Housing Organizations in San Mateo County—mission, services, and contact information
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3.321 Primary Findings
This section summarizes the primary findings from the Fair Housing Assessment for Atherton including the following sections: fair housing enforcement and outreach capacity, integration and segregation, access to opportunity, disparate housing needs, and contributing factors and the town’s fair housing action plan. ◼ From 2017 to 2021, 57 fair housing complaints in San Mateo County were filed with the U.S. Department of Housing and Urban Development (HUD)—none of the complaints were in Atherton. Compared to nearby Redwood City and Menlo Park, Atherton does not appear to have housing stock currently used by renters with housing vouchers. The Town does not have an inventory of income assisted rental units and to our knowledge, no one has requested the use of vouchers. ◼ Atherton stands out for its affluence and high ownership rates. ◼ Racial and ethnic minorities living in Atherton are wealthier compared to the county. However:
⮚ Households of other or multiple races experience higher rates of cost burden—56% are extremely cost burdened, compared to 16% in the town overall (Figure IV-11). Lower income households are also more likely to experience housing cost burden. One out of seven households with income below 80% AMI are severely cost burdened (Figure IV-10). ⮚ Racial and ethnic minorities are more likely than non-Hispanic White households to experience overcrowding. Other races (21% of households), and Hispanic households (19%), experience the highest rates of overcrowding (Figure IV-17).
⮚ Disparities by race and ethnicity are prevalent for home mortgage applications, particularly in denial rates. Hispanic (60% denial rate) and Asian/API (29%) have the highest denial rates for mortgage loan applications in 2018 and 2019, compared to non-Hispanic White households (18%) (Figure IV-33).
◼ Population growth in Atherton since 2010 has been slower than the County’s and the town has not reached the population level it had prior to the late 1900’s (Figure IV-1). Despite the low population growth, home values accelerated since 2014 (Figure IV-5). Atherton is part of Silicon Valley and home prices have been driven by the regional economy that has generated incredible value. Atherton is one of ATTACHMENT 1
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the region's most expensive communities. Though it is separately incorporated, its economy and home prices are due to regional growth and demand. ◼ Growth in home prices has not translated to more building activity. The majority of the housing inventory in Atherton was constructed from 1940 to 1959, with 1,087 units built between 1940 to 1959 compared to 180 units built in 2010 or later (Figure IV-3).
◼ Atherton has the same share of residents with a disability compared to the county (Figure III-17). Residents living with a disability in the town are more likely to be unemployed. Finally, the aging population is putting a strain on paratransit access countywide.
⮚ Unemployment is disproportionately high among residents living with a disability at 11% compared to 5% for residents without a disability in Atherton—particularly when compared to the county (Figure III-20). ◼ Atherton is served by the Menlo Park City, Redwood City, and Las Lomitas Elementary School Districts.
◼ Countywide 27% of Hispanic students met or exceeded mathematics testing standards and 40% met or exceeded English testing standards. Hispanic students in Menlo Park City Elementary, Las Lomitas Elementary, and Redwood City Elementary, which includes Atherton’s Adelante Selby Spanish Immersion School, performed better compared to the county (55%, 44%, and 34% respectively in mathematics and 62%, 65%, and 43% in English).
◼ Overall, 29% of public-school students in San Mateo County qualify for reduced lunch. This was substantially higher in Redwood City Elementary School District, where 56% of students qualify for reduced lunch which includes Atherton’s Adelante Selby Spanish Immersion School. County-wide, 20% of public-school students are English learners. Again, this rate is higher at Redwood City Elementary, where 38% of students are English learners. In contrast, the share of students who qualify for reduced lunch, are experiencing homelessness, or are English learners is lower in Menlo Park City Elementary and Las Lomitas Elementary is significantly lower than the countywide share (Disparate Access to Educational Opportunities Appendix).
◼ At the high school level, Sequoia Union district has the highest dropout rate in the County (10%), and dropout rates among Pacific Islander (20%), Hispanic (16%), ATTACHMENT 1
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and Black (12%) students are much higher (Disparate Access to Educational Opportunities Appendix).

3.330 Fair Housing Enforcement and Outreach Capacity
This section discusses fair housing legal cases and inquiries, fair housing protections and enforcement, and outreach capacity.

Fair housing legal cases and inquiries. California fair housing law extends beyond the protections in the Federal Fair Housing Act (FHA). In addition to the FHA protected classes—race, color, ancestry/national origin, religion, disability, sex, and familial status—California law offers protections for age, sexual orientation, gender identity or expression, genetic information, marital status, military or veteran status, and source of income (including federal housing assistance vouchers).

The California Department of Fair Employment in Housing (DFEH) was established in 1980 and is now the largest civil rights agency in the United States. According to their website, the DFEH’s mission is, “to protect the people of California from unlawful discrimination in employment, housing and public accommodations (businesses) and from hate violence and human trafficking in accordance with the Fair Employment and Housing Act (FEHA), Unruh Civil Rights Act, Disabled Persons Act, and Ralph Civil Rights Act”.10
DFEH receives, evaluates, and investigates fair housing complaints. DFEH plays a particularly significant role in investigating fair housing complaints against protected classes that are not included in federal legislation and therefore not investigated by HUD. DFEH’s website provides detailed instructions for filing a complaint, the complaint process, appealing a decision, and other frequently asked questions.11 Fair housing complaints can also be submitted to HUD for investigation.

Additionally, San Mateo County has a number of local enforcement organizations including Project Sentinel, the Legal Aid Society of San Mateo County, and Community Legal Services of East Palo Alto. These organizations receive funding from the County and participating jurisdictions to support fair housing enforcement and outreach and education in the County.

From 2017 to 2021, 57 fair housing complaints in San Mateo County were filed with the U.S. Department of Housing and Urban Development (HUD)—none of the complaints were in Atherton.
10 https://www.dfeh.ca.gov/aboutdfeh/
11 https://www.dfeh.ca.gov/complaintprocess/
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Countywide, most complaints cited disability status as the bias (56%) followed by race (19%), and familial status (14%). No cause determination was found in 27 complaints followed by successful conciliation or settlement with 22 complaints. Fair housing inquiries in 2020 were primarily submitted from the City of San Mateo, Redwood City, Daly City, and Menlo Park.

Fair housing complaints filed with HUD by San Mateo County residents have been on a declining trend since 2018, when 18 complaints were filed. In 2019, complaints dropped to 5, increased to 11 in 2020, and had reached 6 by mid-2021.

Nationally, the National Fair Housing Alliance (NFHA) reported a “negligible” decrease in the number of complaints filed between 2019 and 2020. The primary bases for complaints nationally were nearly identical to San Mateo County’s: disability (55%) and race (17%). Familial status represented 8% of complaints nationally, whereas this basis comprised 14% of cases in the county.

NFHA identifies three significant trends in 2020 that are relevant for San Mateo County:
◼ First, fair lending cases referred to the Department of Justice from federal banking regulators have been declining, indicating that state and local government entities may want to play a larger role in examining fair lending barriers to homeownership.
◼ Second, NFHA identified a significant increase in the number of complaints of harassment—1,071 complaints in 2020 compared to 761 in 2019. ◼ Finally, NFHA found that 73% of all fair housing complaints in 2020 were processed by private fair housing organizations, rather than state, local, and federal government agencies—reinforcing the need for local, active fair housing organizations and increased funding for such organizations.12 Atherton has not had any explicit fair housing complaints filed against them. It is difficult for moderate and low income families to access the Atherton housing market. This creates an insulated group of wealthy individuals who are largely not confronted by housing discrimination, or, if they are, have the financial power to overcome it without filing a complaint.

In preparing this AFFH, the San Mateo County jurisdictions participating in 21 Elements participated in a discussion with the local fair housing organizations Legal Aid of San Mateo County and Project Sentinel to learn about fair housing 12 https://nationalfairhousing.org/2021/07/29/annual-fair-housing-report-shows-increase-inhousing-harassment/ ATTACHMENT 1
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trends and concerns, as well as to discuss best practices in AFFH. Following this discussion, the consultant team contacted local fair housing organizations to obtain local data on fair housing complaints and lawsuits beyond what was available in HCD and HUD datasets. Consultants also obtained and analyzed data from HUD. These datasets were compared for duplicate cases and analyzed and appear in the graphics and tables in this section.

Outreach and capacity. The Town of Atherton has posted their Draft Housing Element for 2023-2031 and advertised to residents an ADU survey, a special meeting and study session with the City Council, and plans to host community forums in January to gain input on the final Housing Element.

Atherton could improve the accessibility of fair housing information on their website and resources for residents experiencing housing discrimination. Information on housing resources can be expanded on the on the town’s website as well as information or resources for residents experiencing discrimination in housing or the Fair Housing Act. This could include providing contact information for local fair housing organizations, legal assistance, and general information about the Fair Housing Act and discrimination.

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Housing specific policies enacted locally. Atherton identified the following local policies that contribute to the regulatory environment for affordable housing development in the towncity.

Local policies in place to encourage housing development. ◼ Density bonuses for affordable housing per State Density Bonus Law ◼ Exempt floor area for ADU and JADU construction
◼ Local Ordinance implementing SB9
Local policies that are NOT in place but have potential Council interest for further exploration.
◼ Expanded ADU development and rental programs as well as incentives, to include reduction in fees
◼ Support for school and faculty housing solutions
◼ Multiple single-family ADU rentals on single-family zoned parcels ◼ Fair housing legal services
◼ Housing counseling subsidies
The greatest barrier to construction of affordable housing in Atherton is the high land cost. Property values in Atherton greatly outpace average land cost in other jurisdictions in San Mateo County. The current average cost of an acre is $8 million.

The Town believes that the high cost of land deters development opportunity for largescale affordable housing projects. The Town believes that a distributed approach through the use of an ADU and JADU development and rental program mitigates the high cost of land and will ultimately be more successful. The graph below shows the radical difference in home values in Atherton that reflect the high cost of land as compared to other jurisdictions in San Mateo County and throughout the Bay Area.

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According to the California Department of Housing and Community Development AFFH Data Viewer (HCD data viewer), Atherton does not have public housing buildings. Atherton also does not appear to have a significant share of households using housing vouchers.

Compared to nearby Redwood City and Menlo Park, to the Town’s knowledge, the Town does not have housing stock being utilized by renters with housing vouchers. The lack of presence of housing voucher users could indicate limited or no rental supply to house these residents. should there be a need identified.

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Bay Area policies are interconnected; Atherton’s land use policies contribute to a lack of housing shortages in other areas of the county, as city and service workers are forced to other areas in search of affordable housing that is not found in the towncity in which they work. The figure above shows Atherton lacks renter-occupied housing compared to San Mateo County and the Bay Area. 40% of San Mateo County households are renters compared to only 7% in Atherton. This suggests that workers who cannot afford Atherton must rent elsewhere in the county, given the very limited numbers of rental units in Atheron. There are only 150 renter households in Atherton compared to 2,065 owner-occupied households. Both numbers have stayed relatively stagnant since 2000. Renters in Atherton are young: 74% of those aged 15-24 and 88% of those aged 25-34 are renters. Unless they benefit from family wealth, these renters must leave the town to purchase homes. Data is from ACS 5-year data (2015-2019).

According to ACS data, there are no multi-family homes, boats, RVs, vans or other types of housing in Atherton. 93% (2,021) of detached single-family homes are owneroccupied and 7% (150) are renter-occupied—providing the only rental stock in Atherton. All attached single-family homes (38) and mobile homes (6) are owneroccupied.. Attached single-family homes have grown by only 30 homes and single family detached homes have lost 61 units in the past decade. The California Department of Finance counts six multifamily homes with two to four units built in 2020.

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Local Data and Knowledge. The demographics seen today are rooted in the town’s history. In the 1960s, continued disinvestment and urban renewal in areas surrounding Atherton, such as East Palo Alto, exacerbated housing and education inequality.

Frustrated families in East Palo Alto petitioned for redistricting to address their concerns about education. The lines were drawn and redrawn, and eventually many Black students were bussed to Menlo-Atherton high school. Entrenched housing segregation translated to tension within the school. Black students felt unwelcome and white students felt unsafe in what developed as a microcosm of the exclusionary housing debate formed outside the school walls. The District Board of Trustees representing Menlo-Atherton High responded by limiting the policy to include only students living two miles or more from the school, strategically excluding Black neighborhoods as white students mostly had their own transportation. Protests and fighting ensued between students and white parents doubled down on efforts to remove Black students. One white parent said, “I’m not from the South. I’m a native Californian. I don’t owe them anything. I’ve never done anything to them. Why should we have to subject our children to this kind of thing?”13 Overt tension has disappeared into the annals of history; however, housing the affluence, beauty, and opportunities in Atherton remain inaccessible to many due to its extremely high housing prices.

Housing and educational policy go hand in hand, and this example of exclusion is magnified through zoning code in Atherton that only allows single-family homes on plots a minimum of one acre. The code is as old as Atherton’s incorporation in 1923 and inspired similar ordinances in Los Altos Hills.14 The realty board in Atherton “felt the only way to handle the minority problem was to set aside acreage and subdivide it for minority groups with schools, business districts, etc.” But even this did not occur in Atherton, which continues to be almost entirely zoned for residential buildings. Harry Carskadon, a wealthy real estate agent in Atherton in 1947 was more explicit about excluding Black people and other people of color from the town. He said that the town was “not a proper place for Negroes, Chinese, and other racial minorities” and advocated for “white occupancy in the region.”15 The population charts below show how Atherton’s history is reflected in the demographics today. Data is from ACS. 13 https://www.machronicle.com/menlo-athertons-race-riots/ 14 https://belonging.berkeley.edu/rootsraceplace
15 Loewen, James. Sundown Towns: A Hidden Dimension of Segregation in America (New York: The New Press, 2006)
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3.340 Integration and Segregation
This section discusses integration and segregation of the population by protected classes including race and ethnicity, disability status, familial status, and income status.

The section concludes with an analysis of racially and ethnically concentrated areas of poverty and affluence.

Integration and Segregation
“Integration generally means a condition in which there is not a high concentration of persons of a particular race, color, religion, sex, familial status, national origin, or having a disability or a particular type of disability when compared to a broader geographic area.

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a disability or a type of disability in a particular geographic area when compared to a broader geographic area.”
Race and ethnicity. Atherton is a less diverse community compared to the county. The largest proportion of the population is non-Hispanic White (69% v. 39% countywide), followed by Asian/API (21% v. 30% countywide). Residents of other or multiple races make up 5% of the population, Hispanic residents make up 4% of the population, and Black or African American residents make up 1%.16 The chart below, informed by ACS 209 5-year data, shows the differences in racial makeup between Atherton, San Mateo County, and the Bay Area. Note that diversity by age cohort varies—older residents are less diverse with 89% of the population older than 65 years identifying as White compared to 61% of the population for children less than 18 years old. 16 The share of the population that identifies as American Indian or Alaska Native is less than 1%.

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Older residents are less diverse with 89% of the population older than 65 years identifying as White compared to 61% of the population for children less than 18 years old.

The Dissimilarity Index, or DI, is a common tool that measures segregation in a community. The DI is an index that measures the degree to which two distinct groups are evenly distributed across a geographic area. The DI represents the percentage of a group’s population that would have to move for each area in the county to have the same percentage of that group as the county overall.

DI values range from 0 to 100—where 0 is perfect integration and 100 is complete segregation. Dissimilarity index values between 0 and 39 generally indicate low segregation, values between 40 and 54 generally indicate moderate segregation, and values between 55 and 100 generally indicate a high level of segregation.

The isolation index is interpreted as the probability that a randomly drawn minority resident shares an area with a member of the same minority, it ranges from 0 to 100 and higher values of isolation tend to indicate higher levels of segregation.

Disability status. The share of the population living with at least one disability is 8% in Atherton, which is the same as in San Mateo County. This has changed little over time, as the population was 7% in 2012. There are no census tracts in the town with a share of the population living with a disability above 10%. Geographic concentrations of people living with a disability may indicate the area has ample access to services, amenities, and transportation that support this population.

Familial Status. Atherton is home to more married-couple families and families with children than the county with 74% households being married-couple families compared to only 55% in the County. The town is home to fewer single-person households (13% v. 22% countywide). This is up from 61.7% of married-couple families in Atherton in 2010. The large, expensive homes in the area may draw successful couples in while also making it necessary to have incomes of two people to be able to afford the cost of living.

The vast majority of households in Atherton are homeowners (93%). The number of housing units available by number of bedrooms and tenure is consistent with the familial status of the households that live in Atherton.

Household income. The household income distribution by percent of area median income (AMI) in Atherton is much more concentrated at above 100% AMI compared to the county (79% v. 49% countywide). There are no census tracts in the town with Formatted: Font color: Auto
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concentrations of poverty rates over 10%. Zoning for exclusively single family homes also limits people with lower income from accessing the area, further driving up the area median income.

3.3550 Racially or ethnically concentrated areas of poverty and affluence . Racially Concentrated Area of Poverty or an Ethnically Concentrated Area of Poverty (R/ECAP) and Racially Concentrated Areas of Affluence (RCAAs) represent opposing ATTACHMENT 1
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ends of the segregation spectrum from racially or ethnically segregated areas with high poverty rates to affluent predominantly White neighborhoods. Historically, HUD has paid particular attention to R/ECAPs as a focus of policy and obligations to AFFH.

Recent research out of the University of Minnesota Humphrey School of Public Affairs argues for the inclusion of RCAAs to acknowledge current and past policies that created and perpetuate these areas of high opportunity and exclusion.17 It is important to note that R/ECAPs and RCAAs are not areas of focus because of racial and ethnic concentrations alone. This study recognizes that racial and ethnic clusters can be a part of fair housing choice if they occur in a non-discriminatory market. Rather, R/ECAPs are meant to identify areas where residents may have historically faced discrimination and continue to be challenged by limited economic opportunity, and conversely, RCAAs are meant to identify areas of particular advantage and exclusion.

R/ECAPs
HCD and HUD’s definition of a Racially/Ethnically Concentrated Area of Poverty is:
◼ A census tract that has a non-White population of 50 percent or more (majorityminority) or, for non-urban areas, 20 percent, AND a poverty rate of 40 percent or more; OR
◼ A census tract that has a non-white population of 50 percent or more (majorityminority) AND the poverty rate is three times the average tract poverty rate for the County, whichever is lower.

Source: California Department of Housing and Community Development Guidance, 2021.

For this study, the poverty threshold used was three times the average tract poverty rate for the County—or 19.1%. In addition to R/ECAPs that meet the HUD threshold, this study includes edge or emerging R/ECAPs which hit two thirds of the HUD defined threshold for poverty—emerging R/ECAPs in San Mateo County have 2 times the average tract poverty rate for the county (12.8%).

In 2010 there were three census tracts that qualify as R/ECAPs (19.4% poverty rate) in the county and 11 that qualify as edge R/ECAPs (13% poverty rate). None of the R/ECAPs were located in Atherton in 2010.
17 Goetz, E. G., Damiano, A., & Williams, R. A. (2019). Racially Concentrated Areas of Affluence:

A Preliminary Investigation. Cityscape: A Journal of Policy Development and Research, 21(1), 99–124
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In 2019 there are two census tracts that qualify as R/ECAPs (19.1% poverty rate) in the county and 14 that qualify as edge R/ECAPs (12.8% poverty rate). None of the 2019 R/ECAPs or edge R/ECAPs are located in Atherton. Below is the map for R/ECAPS in 2010.

There are two R/ECAPs bordering Atherton in the Redwood City area and several more edge R/ECAPs. The cluster of R/ECAPs on the border of Atherton is significant, because it shows that 1) Minority census tracts are not able to access resources West of Redwood City, including in Atherton, either because of low wages that cannot meet housing costs or not enough affordable inventory in Atherton to meet low wages and 2) There are stronger minority communities that may feel excluded from the affluent, mostly white neighborhoods in Atherton and choose to live outside of it. Both of these options inform each other.

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In 2019, there remains a cluster of R/ECAPs and edge R/ECAPS on the border of the Atherton area. The only change in the maps regionally is the expansion of the East Palo Alto/ Menlo Park area as an edge R/ECAP.

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RCAAs. HCD’s definition of a Racially Concentrated Area of Affluence is: Formatted: Font color: Auto Formatted: Font color: Auto
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◼ A census tract that has a percentage of total white population that is 1.25 times higher than the average percentage of total white population in the given COG region, and a median income that was 2 times higher than the COG AMI.

Atherton is considered an RCAA (based on 2019 data) because its total white population is 67% and the Association of Bay Area Governments (ABAG) is 40%. The map below shows Atherton’s proximity to other RCAAs. Atherton is largely surrounded by communities that are also RCAAs, however, as one travels West on El Camino Real towards Redwood City, there are fewer RCAAs. Although maps are not available through time, our analysis so far has shown that the white population has remained the majority demographic throughout Atherton’s history. Atherton has also consistently had high home prices compared to San Mateo County and the Bay Area, suggesting that high income people are drawn to the area and are willing to pay a high price for large homes in the residential town. The Stanford area has more racial and income diversity from its student body and staff. The Palo Alto area is still expensive, and many employees of the University likely bypass Atherton and Menlo Park for cheaper housing in Sunnyvale and Redwood City.

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Although poverty rates within Atherton are very low, there are still minor disparities by race. 5.3% of Asian and Asian Pacific Islanders are in poverty compared to 3.5% of white households. The 0% of Black, American Indian and Alaska Native populations face poverty in Atherton, but this should be interpreted with caution as the sample is far too small to draw conclusions. This chart shows that, although the area is considered a RCAA, within Atherton’s small BIPOC population there are variations of experience.

3.360 Access to Opportunity
This section discusses disparities in access to opportunity among protected classes including access to quality education, employment, transportation, and environment.

Access to Opportunity
“Access to opportunity is a concept to approximate place-based characteristics linked to critical life outcomes. Access to opportunity oftentimes means both improving the quality of life for residents of low-income communities, as well as supporting mobility and access to ‘high resource’ neighborhoods18. This encompasses education, employment, economic development, safe and decent housing, low rates of violent crime, transportation, and other opportunities, including recreation, food and healthy 18 Neighborhoods with the greatest access to public parks, transit, schools, grocery stores, and health facilities.

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environment (air, water, safe neighborhood, safety from environmental hazards, social services, and cultural institutions).”
Source: California Department of Housing and Community Development Guidance, 2021, page 34.

The California Tax Credit Allocation Committee (TCAC) in collaboration with HCD developed a series of opportunity maps that help to identify areas of the community with good or poor access to opportunity for residents. These maps were developed to align funding allocations with the goal of improving outcomes for low-income residents—particularly children.

The opportunity maps highlight areas of highest resource, high resource, moderate resource, moderate resource (rapidly changing), low resource and high segregation and poverty. TCAC provides opportunity maps for access to opportunity in quality education, employment, transportation, and environment. Opportunity scores are presented on a scale from zero to one and the higher the number, the more positive the outcomes.

Education. TCAC’s education score is based on math proficiency, reading proficiency, high school graduation rates, and the student poverty rate. According to TCAC’s educational opportunity map, census tracts in Atherton score between 0.25 and

0.75—opportunity scores are presented on a scale from zero to one and the higher the number, the more positive the outcomes. The census tract scoring between 0.25 and

0.50 is located west of El Camino Real and the census tract to the east scores between

0.50 and 0.75.

Patterns within San Mateo County reveal that over the last decade, schools have become increasingly more diverse, with Hispanic students making up 38% of enrollments. Ravenswood and Redwood City, to the West and Northeast of Atherton respectively, both have the highest number of Hispanic students at 84% and 70%. In Redwood City Elementary, just outside of Atherton, more than one-third of students are English learners. This could contort educational outcomes compared to schools with more efficient English speakers.

An astounding 30% of students at Ravenswood Elementary are experiencing homelessness compared to the county-rate of 2%. Without a stable place to complete school work and, most importantly, feel safe and secure, students are unable to reach their full potential and thus lower the education scores. There are limited affordable housing options in Atherton and other jurisdictions surrounding Ravenswood for families to access once they are displaced. Formatted: Font color: Auto ATTACHMENT 1
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Atherton is served by the Menlo Park City, Redwood City, and Las Lomitas Elementary School Districts; and the Sequoia Union Unified High School District.

Menlo Park City Elementary experienced an increase in enrollment of 6% from 2010 to 2020, while enrollment in Redwood City Elementary and Las Lomitas Elementary decreased 11% and 16% respectively. This represents a much larger decrease than the one percent decrease experienced in the county.

Enrollment in Sequoia Union Unified High School District increased by 18% from 2010 to 2020.

Enrollment composition by race and ethnicity varies by district. Menlo Park City Elementary and Las Lomitas Elementary have a higher share of White students than San Mateo County (55%, and 53% respectively, v. 26%). Redwood City Elementary has a much higher share of Hispanic students than San Mateo County (70% v. 38%). The enrollment composition in Sequoia Union High School District is similar to the countywide distribution.

Atherton has received an average of 18 short-term enrollments of migrant student workers per year according to California Department of Education data. This is significantly fewer than the county level, which sees an average of 416 per year.

Overall, 29% of public-school students in San Mateo County qualify for reduced lunch.

This was substantially higher in Redwood City Elementary School District, where 56% of students qualify for reduced lunch, which includes Atherton’s Adelante Selby Spanish Immersion School. County-wide, 20% of public-school students are English learners.

Again, this rate is higher at Redwood City Elementary, where 38% of students are English learners.

Atherton has received an average of 18 short-term enrollments of migrant student workers per year according to California Department of Education data. This is significantly fewer than the county level, which sees an average of 416 per year.

In contrast, the share of students who qualify for reduced lunch, are experiencing homelessness, or are English learners is lower in Menlo Park City Elementary and Las Lomitas Elementary is significantly lower than the countywide share.

Countywide 27% of Hispanic students met or exceeded mathematics testing standards and 40% met or exceeded English testing standards. Hispanic students in Menlo Park City Elementary, Las Lomitas Elementary, and Redwood City Elementary, which includes Atherton’s Adelante Selby Spanish Immersion School, performed better Formatted: Font color: Auto
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compared to the county (55%, 44%, and 34% respectively in mathematics and 62%, 65%, and 43% in English).

Many high schoolers in the county met admission standards for a University of California (UC) or California State University (CSU) school. Of the high school districts in San Mateo County, Sequoia Union had the highest rate of graduates who met such admission standards at 69% followed by San Mateo Union High with 68%. Pacific Islander, Hispanic, and Black students in the Sequoia Union district were less likely to meet the admission standards with rates of 38%, 55%, and 50% respectively.

Despite the high share of students meeting college admission standards, Sequoia Union has the second to lowest college going rate, at 70%. The highest rate was 77% in San Mateo Union High.

In addition, Sequoia Union district has the highest dropout rate in the County (10%) and dropout rates among Pacific Islander (20%), Hispanic (16%), and Black (12%) students are much higher. Students with disabilities and those learning English dropped out at the highest rate at 24% and 27%, respectively. This is a sign that the district does not offer adequate support for students facing barriers because of their race, language skill, and disability. However, there are promising increases in diversity of school staff that serve as an advantage to a diverse student body.

Another possible reason can be traced to chronic absenteeism, which means students miss more than 10% of school days. 17% of student in the Sequoia Union high school districts struggle with chronic absenteeism, which drastically lowers test scores and social engagement with peers and mentors. Black and Hispanic students were more likely to be chronically absent. Schools with more homeless students also saw more chronic absenteeism, illuminating a connection between school performance and stable housing.

Employment. The top three industries by number of jobs in Atherton include professional and managerial services, health and educational services, and arts and recreation services. In the terms of job holders, the top industries are professional and managerial services, and health and educational services. The chart below shows employment by industry and region.

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Atherton has a lower job to household ratio when compared to the county at 1.14 and

1.59 respectively. The town has a slightly higher unemployment rate than the county, but saw a sharp incline in the unemployment rate in 2020 that has yet to return to pre pandemic levels..

TCAC’s economic opportunity score is comprised of poverty, adult educational attainment, employment, job proximity, and median home value. The entire town area scores more than 0.75 for economic opportunity—highest economic outcome.

HUD’s job proximity index shows the eastern part of the town in relatively close proximity to jobs (score between 60 to 80) while the western part scores between 40 and 60— on a scale from zero to 100 where 100 is the closest proximity to jobs.

There are several barriers to high paying jobs for protected classes, most of which can be traced back to educational opportunities and outcomes. As highlighted in the previous education section, Black, Hispanic, and English language learners have the highest school absenteeism and drop out rate in the school district covering Atherton.

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to drop out, their employment options that will provide adequate pay for housing in Atherton are drastically reduced.

Transportation. This section provides a summary of the transportation system that serves Atherton and the broader region including emerging trends and data relevant to transportation access in the towncity. The San Mateo County Transit District acts as the administrative body for transit and transportation programs in the county including SamTrans and the Caltrain commuter rail. SamTrans provides bus services in San Mateo County, including Redi-Wheels paratransit service.

In 2018, the Metropolitan Transportation Commission (MTC), which covers the entire Bay Area, adopted a coordinated public transit and human services transportation plan. While developing the coordinated plan, the MTC conducted extensive community outreach about transportation within the area. That plan—which was developed by assessing the effectiveness of how well seniors, persons with disabilities, veterans, and people with low incomes are served—was reviewed to determine gaps in services in San Mateo and the county overall. Below is a summary of comments relevant to San Mateo County. There were no comments specific to Atherton. “San Mateo’s PCC and County Health System, as well as the Peninsula Family Service Agency provided feedback. The most common themes expressed had to do with pedestrian and bicycle needs at specific locations throughout the county, though some covered more general comments such as parked cars blocking sidewalk right-of-way and a desire for bike lanes to accommodate motorized scooters and wheelchairs. Transportation information, emerging mobility providers, and transit fares were other common themes.

While some comments related to the use of car share, transportation network companies (TNCs), or autonomous vehicles as potential solutions, other comments called for the increased accessibility and affordability of these services in the meantime.”19
A partnership between the World Institute on Disability and the MTC created the research and community engagement project TRACS (Transportation Resilience, Accessibility & Climate Sustainability). The project’s overall goal is to, “stimulate connection and communication between the community of seniors and people with 19 https://mtc.ca.gov/sites/default/files/MTC_Coordinated_Plan.pdf Formatted: Font color: Auto
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disabilities together with the transportation system– the agencies in the region local to the San Francisco Bay, served by MTC.”20
As part of the TRACS outreach process, respondents were asked to share their compliments or good experiences with MTC transit. One respondent who had used multiple services said, “it is my sense that SamTrans is the best Bay Area transit provider in terms of overall disability accommodation.”
The San Mateo County Transit District updated their Mobility Plan for Older Adults and People with Disabilities in 2018. According to the district, the county’s senior population is expected to grow more than 70% over the next 20 years and the district is experiencing unprecedented increases in paratransit ridership. The plan is targeted at developing effective mobility programs for residents with disabilities and older adults including viable alternatives to paratransit, partnerships, and leveraging funding sources.21
MTC also launched Clipper START—an 18-month pilot project— in 2020 which provides fare discounts on single transit rides for riders whose household income is no more than double the federal poverty level.22
In 2020, Caltrain voted to close Atherton’s station due to low ridership. Some residents thought this would be harmful to those who do not have access to a car or cannot drive, such as the elderly and disabled community.23 Environment. TCAC’s opportunity areas environmental scores are based on the CalEnviroScreen 3.0 indicators, which identify areas disproportionately vulnerable to pollution sources such as ozone, PM2.5, diesel PM, pesticides, toxic release, traffic, cleanup sites, groundwater threats, hazardous waste, impaired water bodies, and solid waste sites.

According to TCAC’s opportunity map, census tracts in Atherton score between 0.25 and 0.75—opportunity scores are presented on a scale from zero to one and the higher the number, the more positive the outcomes. The census tract scoring between

0.25 and 0.50 is located west of El Camino Real and the census tract to the east scores 20 https://wid.org/transportation-accessibility/
21https://www.samtrans.com/Planning/Planning_and_Research/Mobility_Plan_for_Older_Adul ts_and_People_with_Disabilities.html
22 https://mtc.ca.gov/planning/transportation/access-equity-mobility/clipperr-startsm 23https://www.smdailyjournal.com/news/local/residents-react-to-plan-to-close-atherton-s-caltrain-stop/article_3070cdd2- d539-11ea-ad6b-4b3eeab63a6c.html
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between 0.50 and 0.75. The town scores the highest on the California Healthy Places Index (HPI) developed by the Public Health Alliance of Southern California (PHASC).

The HPI includes 25 community characteristics in eight categories including economic, social, education, transportation, neighborhood, housing, clean environment, and healthcare.24
Disparities in access to opportunity. Racial and ethnic minorities are more likely to live in moderate high resource areas compared to non-Hispanic White residents. The chart below details the percentage of households by race living in resource areas. Note that there are no households in Atherton living in a low resource area. 71% of Hispanic households live in moderate resource areas compared with 29% in high resource areas. Similarly, 77% of Black households live in moderate resource areas and 23% live in high resource areas. Non-hispanic, multiple race households have the highest population in high resource areas, however this population is relatively small with 323 households compared with 4,966 white households. In moderate resource areas nonHispanic White residents make up 6271% of the population compared to 3867% in high resource areas. Racial and ethnic minorities living in Atherton are wealthier compared to the county and Atherton is home to a disproportionately small share of residents with limited English proficiency (1% compared to 7% countywide). 24 https://healthyplacesindex.org/about/
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TCAC’s composite opportunity score for Atherton shows census tracts west of El Camino Real fall within moderate resource areas while the rest is within high resource areas.

The Social Vulnerability Index (SVI) provided by the CDC—ranks census tracts based on their ability to respond to a disaster—includes four themes of socioeconomic status, household composition, race or ethnicity, and housing and transportation. The index shows Atherton as a low vulnerability area.

Atherton does not have any disadvantaged communities as defined under SB 535, “disadvantaged communities are defined as the top 25% scoring areas from CalEnviroScreen along with other areas with high amounts of pollution and low populations.”25
Disparities specific to the population living with a disability. Eight percent of the population in Atherton are living with at least one disability, the same share as in the 25 https://oehha.ca.gov/calenviroscreen/sb535
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county. The most common disabilities in the town are ambulatory (4.5%), cognitive (3.1%), and hearing (3.0%).

Disability
“Disability types include hearing difficulty, vision difficulty, cognitive difficulty, ambulatory difficulty, self-care difficulty, and independent living difficulty.” Source: California Department of Housing and Community Development Guidance, 2021, page 36.

For the population 65 and over the share of the population with an ambulatory or independent living difficulty increases. As mentioned above under access to transportation, San Mateo County is rapidly aging, therefore this population with a disability is likely to increase.

Unemployment is disproportionately high among residents living with a disability at 11% compared to 5% for residents without a disability in Atherton—particularly when compared to the county. High unemployment rates among this population points to a need for increased services and resources to connect this population with employment opportunities.

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3.360 Disparate Housing Needs
This section discusses disparate housing needs for protected classes including cost burden and severe cost burden, overcrowding, substandard housing conditions, homelessness, displacement, and other considerations.

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Disproportionate Housing Needs
“Disproportionate housing needs generally refers to a condition in which there are significant disparities in the proportion of members of a protected class experiencing a category of housing need when compared to the proportion of members of any other relevant groups, or the total population experiencing that category of housing need in the applicable geographic area. For purposes of this definition, categories of housing need are based on such factors as cost burden and severe cost burden, overcrowding, homelessness, and substandard housing conditions.”
Source: California Department of Housing and Community Development Guidance, 2021, page 39.

Housing needs. Population growth in Atherton has historically been driven by economic cycles. The town experienced a sharp loss in population between 1999 and 2000 and again between 2009 and 2010. Since 2010 population growth has been slower than the County’s and the town has not reached the population level it had prior to the Financial Crisis. However, the town does not appear to have experienced a sharp decrease in 2020, with the COVID-19 pandemic.

Since 2015, the housing permitted to accommodate growth has largely been priced for above moderate-income households with 78 units permitted for above moderateincome households compared to 35 for very low-income households, 15 for lowincome households, and 3 for moderate income households. The Housing Needs Data Report for Atherton indicates new construction has not kept pace with demand throughout the Bay Area, “resulting in longer commutes, increasing prices, and exacerbating issues of displacement and homelessness.” 26 One example of a group who has found workforce housing hard to come by are the employees of the Atherton pPolice Department in Atherton. In 2018, employees advised the Police told the City Council that they faced longa five-hour commutes on top of twelve-hour shifts and had little time to sleep. The commute was necessary because there are no affordable options in the regionAtherton for their families. In the past, the town has used town-owned property as places for police to sleep. This solution was not sustainable for the town or police, who wanted to spend more time with their families instead of commuting.27 This puts the town at risk of losing dedicated members of their police force because of housing issues. It also makes recruitment and retention difficult for other social services.

The variety of housing types available in the towncity in 2020 are predominantly single family (98%). Six multi-familymulti family homes were added in 2020, whereas single 26 Housing Needs Data Report: Atherton, ABAG/MTC Staff and Baird + Driskell Community Planning, 2021.
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family detached saw a decline in units and single family attached saw a small incline.

Atherton has developed far fewer multifamily units than the region, thus people of lower incomes seek housing outside of the town. From 2010 to 2020, the multifamily inventory increased more than single family, but the city has a lower share of multifamily housing compared to other communities in the region. 28 The majority of the housing inventory in Atherton was constructed from 1940 to 1959, with 1,087 units built between 1940 to 1959 compared to 180 units built in 2010 or later.

Despite the aging housing stock, there are no reports of substandard housing conditions. This could be because all residents live in moderate or high resource areas where renovations are financially feasible and most residents are homeowners who are able to modify their units.

Compared to San Mateo County, the Town’s owner-occupied housing market has a greater share of units priced above $2 million. Ninety percent (90%) of units in Atherton fall within this price range compared to 19% in the county. According to the Zillow home value index, home prices have experienced exponential growth in the town and the county. The town is outlier, with the Zillow home value index at $6.6 million compared to the county’s $1.4 million.
28 Housing Needs Data Report: Atherton, ABAG/MTC Staff and Baird + Driskell Community Planning, 2021.

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Given the small share of renters in the town, rental price trends are less accurate than the County’s, but appear to have experienced high appreciation since 2014.

Compared to the county, Atherton has more luxury rental units—67% of units rent for more than $3,000 in the town compared to 22% in the county. A point-in-time Google search found no home for rent under $5,000 per month. Workers would need to command very high incomes to rent in Atherton–and are thus inclined to seek out l homeownership or lower cost rental opportunities in other communities.

Resident survey data provide evidence of more rental inventory, reporting that owners are renting accessory dwelling units (ADUs) to senior family members, students, school faculty, and local service workers at significantly reduced or below market rental prices.

Cost burden and severe cost burden. As expected, a low share of households in Atherton are cost burdened—spending more than 30% of their gross income on housing costs— compared to the county (28% v. 37% in the county).

Lower income households are more likely to experience housing cost burden. One out of seven households with income below 80% AMI are severely cost burdened— spending more than 50% of their gross income on housing costs. Cost burdened households have less money to spend on other essentials like groceries, transportation, education, healthcare, and childcare. Extremely cost burdened households are considered at risk for homelessness. Cost burden suggests that wages have not kept up with housing costs in the area.

Cost burden impacts income groups differently. When cost burden is broken down by Area Median Income (AMI), there are stark differences. The chart below indicates these disparities. Although those with greater than 100% AMI likely spend the most on housing, their incomes are able to meet these costs. 80% of those in this group spend 0-30% of their income on housing. In contrast, 88% of those with 0-20% AMI spend over 50% of their income on housing costs.

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As mentioned previously, racial and ethnic minorities living in Atherton are wealthier compared to the county, Asian/API and Hispanic households are less likely to be cost burdened than non-Hispanic White households. Households of other or multiple races experience higher rates of cost burden—56% are extremely cost burdened, compared to 16% in the town overall.

There are also differences by tenure. In San Mateo County, 29.6% of homeowners pay more than 35% of their income towards housing and 42.8% of renters pay more than 35% of their income towards housing costs. This is higher than in Atherton, likely because there are more people over 100% AMI. In the town, 71% of owner-occupiers pay less than 30% of income towards housing. Statistics on renter income to housing costs are difficult to calculate because of the low number of renters in Atherton, thus 51% of renter cost has not been calculated in ACS data. From what exists, 35% of renteroccupied households pay less than 30% of income on housing costs and 11% pay 30- 50% of income on rent.

The map below shows cost burden by census tract. ACS 5-year 2019 data shows 20- 40% of renters in Atherton are paying more than 30% of their income on rent. Atherton is largely surrounded by cost burdened communities, show casing the lack of affordable housing anywhere in the region. 60-80% of renters are cost burdened in the East Palo Alto and Redwood City area. It could be that there are more renters in this area because Atherton offers few renter-occupied units and thus residents of San Formatted: Font color: Auto
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Mateo County who cannot yet afford a house are forced to pay a high cost of housing as renters in areas outside of Atherton. Southwest Atherton has less than 20% of renters who are cost burdened, but is similarly surrounded by communities that have more than 20% of renters that are cost burdened. Formatted: Font color: Auto ATTACHMENT 1
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Cost burden for homeowners is more significant in Atherton. This is not surprising given that there are more owner-occupied single family homes in the town and therefore there is richer data on owners than renters. At least 20% of homeownershome owners in Atherton spend more than 30% of their income on housing costs. In Southwest Atherton, which notably had fewer cost burdened renters than other areas of the town, has the highest percentage of homeownershome owners who are cost burdened in the town at 40-60%. Again, Atherton is surrounded by communities where over 20% of homeowners are cost burdened, suggesting that homeownership is still unaffordable to those even with relatively high incomes.

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Overcrowding. The vast majority of households (99%) in Atherton are not overcrowded—indicated by more than one occupant per room.

Racial and ethnic minorities are more likely than non-Hispanic White households to experience overcrowding. Other races (21% of households), and Hispanic households (19%), experience the highest rates of overcrowding.

In San Mateo County, 6.9% of households have more than one occupant per room.

This is slightly better than the state average of 8.2%.

Below, the map shows where overcrowding in the Bay Area is more common. East Palo Alto and Redwood City have the highest percentage of overcrowding in the region, likely because of their high renter population. Multifamily rental units have less bedrooms than single family homes. There are also higher populations of Hispanic residents in these areas that tend to have multigenerational, larger households which could account for the higher overcrowding rate.

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Substandard housing. Data on housing conditions are very limited, with the most consistent data available across jurisdictions found in the American Community Survey (ACS)—which captures units in substandard condition as self-reported in Census surveys. According to data estimates, the share of housing units with substandard kitchen and plumbing facilities in Atherton is zero, . despite an aging housing stock.

Despite the aging housing stock, there are no reports of substandard housing conditions. This could be because all residents live in moderate or high resource areas where renovations are financially feasible and most residents are homeowners who are able to modify their units. San Mateo County also has a low rate of substandard housing; 99.9% of households have complete kitchen and plumbing facilities.

As shown in the map below, which shows the percentage of residents who do not have complete kitchen or plumbing utilities, live in severely overcrowded conditions, and are severely cost burdened, Atherton has less than 20% of residents in substandard conditions. In East Palo Alto and Southeast Redwood City, however, 40-60% of all households selected at least one of substandard housing issue. Substandard housing congregates in areas of low income because these residents do not have the financial leverage to improve housing conditions, have landlords who are unwilling to make improvements, or do not ask for improvements or report conditions in fear of retaliatory eviction.

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Homelessness. In 2019, 1,512 people were experiencing homelessness in the county, 40% of people were in emergency or transitional shelter while the remaining 60% were unsheltered. The majority of unsheltered people experiencing homelessness were in households without children. The majority of people in transitional housing were in households with children.

People who identify as American Indian or Alaskan Native (6% homeless, less than 1% general population), Black (13%, 2%), White (67%, 51%), and Hispanic (38%, 28%) are overrepresented in the homeless population compared to their share of the general population. The disparities by race can be traced back to discrimination in the housing market and the exclusion of non-white populations from high resource areas. There are few housing options for low-income people in the region. Housing that is available at the market rate likely forces people to spend more than 50% of their income on housing, which puts households at risk for homelessness.

People struggling with chronic substance abuse (112 people), severe mental illness (305), and domestic violence (127) represent a substantial share of the homeless population in 2019. This indicates that there are not enough resources or beds for those experiencing mental illness, substance abuse, and domestic violence in the county.

Displacement. Owner households generally enjoy a greater amount of housing stability whereas renter households are more mobile. Atherton has no inventory of income assisted rental units. In San Mateo County, 417 units are at risk; 8% of the total assisted housing units in the county.

Displacement Sensitive Communities
“According to the Urban Displacement Project, communities were designated sensitive if they met the following criteria:
◼ They currently have populations vulnerable to displacement in the event of increased redevelopment and drastic shifts in housing cost. Vulnerability is defined as:
⮚ Share of very low-income residents is above 20%, 2017 ⮚ AND
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⮚ The tract meets two of the following criteria:
− Share of renters is above 40%, 2017
− Share of people of color is above 50%, 2017
− Share of very low-income households (50% AMI or below) that are severely rent burdened households is above the county median, 2017
− They or areas in proximity have been experiencing displacement pressures. Displacement pressure is defined as:
● Percent change in rent above county median for rent
increases, 2012-2017
OR
◼ Difference between tract median rent and median rent for surrounding tracts above median for all tracts in county (rent gap), 2017” Source: https://www.sensitivecommunities.org/.

No census tracts in the towncity are vulnerable to displacement, however, the town must keep in mind that housing cost burden is a risk for displacement and 88% of residents below 30% AMI pay more than 50% of their income on housing. Atherton’s rent is also far above regional median rent, suggesting that there is displacement pressure in place. The chart below shows median rent in Atherton, San Mateo County, and the Bay Area.

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As discussed in the previous section regarding R/ECAPs, Atherton is nearby edge R/ECAPs in Redwood City and Menlo Park. This suggests that people who may be displaced from Atherton migrate to these areas and that people within Redwood City and Menlo Park who are displaced cannot access resources within Atherton.

Displacement can also occur because of natural disasters. Atherton is in San Mateo County, which is on the San Andreas fault and therefore has a high likelihood of severe earthquakes. Houses in California are generally made to withstand earthquakes, but those who spend more than 30% of their income on housing costs likely cannot save enough to repair severe damage. This means those of lower income are more at risk of displacement.

Access to mortgage loans. Disparities by race and ethnicity are prevalent for home mortgage applications, particularly in denial rates. Hispanic (60% denial rate) and Asian/API (29%) have the highest denial rates for mortgage loan applications in 2018 and 2019, compared to non-Hispanic White households (18%). These numbers suggest that traditional routes to homeownership are barriers to non-white households. Credit score, assets, and income disparities between races show in denial rates.

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3.370 Site Inventory Analysis
There are no R/ECAPs or edge R/ECAPS located within the Town of Atherton. Edge R/ECAPS within unincorporated San Mateo County have proximity to portions of Atherton along the western edge of Town bounding El Camino Real.

The complete inventory of identified opportunity sites is included as Appendix 5 and expanded up in section 3.410.

3.380 Contributing Factors and Fair Housing Action Plan The fprimary factors contributing to fair housing challenges within Atherton is the high cost of land acquisition, zoning primarily for single family homes, and little affordable housing for those with moderate and low income who work in the town. Per an analysis completed in 2022, the average land acquisition cost for a single acre in Atherton is approximately $8 million. The affordability of land is a high bar to the creation of affordable housing and the greatest barrier to development. The best opportunities for new affordable housing include ADUs and multiple family units on school sites where the land is already owned by the entity. The Town is continuing to see success in the creation of additional ADU units. The Town estimates that 60% of new ADU units to be built will be rented at very low or low-income levels. Based on existing precedent, these units are often used for housing for a senior family member, employees of the homeowner, students, or in other similar circumstances where the renter would otherwise be unable to find similar accommodations locally. This prevents the ADU occupants from displacing others from low-income housing that is available locally.

ADUs have several other advantages. They can be constructed at significantly lower cost than the cost to build a new multifamily unit. They can be located anywhere within the Town, which means such low-income units are geographically spread throughout Atherton. They are also politically popular and easy to permit.

The Town will implementis pursuing several strategies to further utilize ADUs as a tool for providing fair housing opportunities, including:
▪ Expanding community outreach to realize additional ADU development. ▪ Developing assistance programs for JADUs to make alterations easier and more cost effective so that additional units can be developed within the existing building envelope of houses and made available at more affordable rates. ▪ Amending the Zoning title to eliminate the occupancy limitation on other accessory units, such as guest houses and pool houses.
▪ Createing an inventory of existing pool houses and guest houses, and then working with a nonprofit to connect homeowners to prospective renters.

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▪ Amend the code to increaseConsider increasing the height limit to allow ADUs to be constructed above garages.
▪ AmendConsider amending the zoning code to allow two ADUs to be constructed on a property.
▪ AmendConsider amending the zoning code to allow multiple ADUs to be rented on a property.
▪ AmendConsider amending the fee resolution to remove the planning review fees for ADUs.
▪ Adopting an affordable housing impact fee on single family construction. The Town will make available funds from this program to provide very low-income rental assistance for eligible households identified by HIP.

The Town’s complete strategy related to encouraging ADU production and the rental of these units is provided in section 3.812.

Additionally, the Town will be providing additional fair housing resources and training for property owners, real estate agents, and tenants, per section 3.823 E. This will be provided through a collaboration with other cities and towns, Project Sentinel, or another similar organization. This will provide information on reasonable accommodation and issues related to income and other forms of discrimination. This training could be mandated for multi-family developers, property owners and any resident renting an ADU or similar unit. The Town will also create a webpage to host this information and improve awareness around fair housing training, issues and available programs. The webpage will also provide information on filing fair housing complaints with HCD or HUD.

Lastly, as part of its ADU rental strategy, the Town will implement a program to affirmatively market low-income units to households that are under-represented in the Town in comparison to neighboring jurisdictions and the County. To examine the effectiveness and interest in the ADU strategy, a survey of potential renters in the area, such as employees of homeowners, school and city staff, and elderly individuals would also be useful.

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3.400 HOUSING RESOURCES

3.410 Inventory of Sites Suitable for Residential Development

3.411 Parcel-specific List of Available Sites
This section contains an inventory of specific sites suitable for residential development so that a comparison may be made with Atherton’s new construction need by affordability category with its residential development capacity.

The accompanying table (Appendix 5) identifies lands suitable for residential development in Atherton. The HCD Electronic Housing Element Site Inventory Form has been used. Each site is identified by address and assessor’s parcel number and includes the site acreage and existing land use. Existing zoning falls into the categories listed below. It should be noted that Atherton has only four zoning districts, the three listed below plus a Parks and Open Space District.

R-1A (Residential District) - Limits land uses to single-family detached homes on minimum one-acre size lots.

R-1B (Residential District)-Limits uses to single-family detached homes on minimum size 13,500 square foot (0.31 acre) lots.

PFS (Public Facilities and Schools District) - Limits land uses to public and private schools including affiliated residential uses, town hall, library and other similar public and quasipublic uses without limitation on lot size. This district also permits single-family and multifamily residences pursuant to a master plan.

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Menlo College – 1000 El Camino Real
Menlo College is a private 4-year college located at 1000 El Camino Real sited on 31 acres of property (including 50% ownership of Cartan Athletic Field and Wunderlich Athletic Field) serving approximately 750 students.

Public and private school properties are zoned PFS (Public Facilities and Schools) District in Atherton. The PFS District currently allows multiple-family residential uses that could accommodate housing for very low- and low-income households associated with primary nonresidential use of property on the same site.

Menlo College currently has 567 beds in 5 residence halls for its students with an additional 288 beds to be added in the fall of 2022. The on-site student housing frees up housing units in the community and addresses the needs of very-low-income students that were experiencing homelessness. The College also has 25 housing units for its faculty and staff. Most of those housing units are rented at rates affordable to low- and moderate-income households.

In recent discussions between the College President and Atherton Planning Staff, the President indicated that the College is very interested in providing additional housing on campus. He stated that there is always a demand for additional housing, that the existing units are almost always 100% occupied, and that shortage of affordable housing is a barrier to hiring. However, funding has been a barrier to housing production in the past. The letter indicates that the College could support 18 to 40 additional faculty housing units. Letter from the College President is included as an appendix. Sites would contribute to fair housing by accommodating moderate and low income school staff. The Town should ensure that there are units for staff across the income spectrum, from teaching faculty to janitorial staff. This consideration should be applied to all premises willing to build affordable housing listed below.

Menlo School – 50 Valparaiso Avenue
Menlo School is a private grade 6 - 12 school located at 50 Valparaiso Avenue sited on 26.7 acres of property (including 50% ownership of Cartan Athletic Field and Wunderlich Athletic Field) serving approximately 795 students. The school site currently allows for the development of multiple-family residential uses. The school expressed its interest in acquiring land adjacent to the school and developing 10-20 units within this housing element cycle. If the school were to acquire additional property, the Town would consider expanding the PFS zone to include the acquired property via existing zoning opportunities.

Sacred Heart – 150 Valparaiso Avenue
Sacred Heart Schools is a private preschool, K - 12 institution located at 150 Valparaiso Avenue on 60 acres for property serving approximately 1,195 students. The school site currently allows for the development of multiple-family residential uses, and adjacent parcels that may be acquired by the school in the future would likely be rezoned for ATTACHMENT 1
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such a use. There are currently 5 apartment units on the campus and housing for retired Nuns at Oakwood. The school anticipates this facility being renovated in the future (15-20 years) to accommodate faculty housing. The school has a need for faculty and staff housing, although, it is not anticipated that the school will develop new housing units during this housing element cycle.

Public Schools
Public schools in Atherton also have an identified need for teacher and faculty housing. These schools have the opportunity to create housing using the California Teacher Housing Act of 2016. While the Town’s Housing Element does not account for additional housing at these schools over the 2023-2031 Housing Cycle, it is highly likely that one or more of the institutions below will pursue such housing.

Menlo-Atherton High School
Menlo-Atherton High School is a public four-year secondary school in the Sequoia Union High School District serving approximately 2,400 students. The school and its athletic fields occupy 38.5 acres at 555 Middlefield Road at the corner of Middlefield and Ringwood Avenue.

Laurel School Lower Campus
Laurel School is a public elementary school in the Menlo Park City School District. Its Lower Campus is on 6 acres at 95 Edge Road in Atherton at the corner of Edge and Ringwood Avenue. The Lower Campus serves approximately 326 students in grades K2.

Encinal School
Encinal School is a public K-5 elementary school in the Menlo Park City School District serving approximately 630 students. It is located on 10 acres at 195 Encinal Avenue at the corner of Encinal and Middlefield Road.

Las Lomitas School
Las Lomitas School is a public TK-3 elementary school in the Las Lomitas Elementary School District serving approximately 485 students. It is located on 9 acres at 299 Alameda de las Pulgas at the corner of Alameda de las Pulgas and Camino Al Lago.

Adelante Selby Spanish Immersion School
Adelante Selby Spanish Immersion School is a public K-5 elementary school in the Redwood City School District serving approximately 652 students. The portion of the campus within Atherton is located on 5.5 acres at 170 Selby Lane.

CalWater Bear Gulch Reservoir Site – 120 Reservoir Road CalWater owns and operates 99 acres at the Bear Gulch Reservoir in Atherton. The property is located within the Town’s Park and Open Space (POS) zoning district. This ATTACHMENT 1
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district currently allows caretaker housing with a Conditional Use Permit. Due to the high cost of housing and new employee recruitment, CalWater expressed interest in constructing four new affordable housing units at this site.

To facilitate further development of housing at the Bear Gulch property, the Town will amend the POS zone to allow low and moderate-income multifamily housing by right.

Underutilized Parcels (Further Subdivision and/or SB 9 Subdivision) Seventy parcels listed on the table from row 8 (60 Parkwood) to row 78 (172 Tuscaloosa) are residential parcels included as underutilized since they are of sufficient size to be further subdivided according to the existing zoning and lot size limits. Six of these parcels are vacant and have the capacity to yield 7 new dwellings for above moderate-income households if subdivided and developed in accordance with existing zoning regulations or to yield 14 new dwellings for above moderate-income households if subdivided and developed in accordance with SB 9 regulations.

Sixty-four of these parcels are developed with one single-family house. Those parcels have the capacity to yield 93 net29 new dwellings for above moderate-income households if subdivided and developed in accordance with existing zoning regulations. Under the allowable provisions of SB 9, these 64 parcels could be split into two legal parcels, with each parcel further allowed development capacity of 2 dwelling units. It follows that under SB 9, if each parcel were to meet the required criteria for an urban lot split, the overall development capacity could result in a total 123 dwelling units.

Complete Electronic Housing Element Site Inventory Form Included as Appendix 5 29 Each parcel contains an existing house which must be demolished to permit subdivision and development with two new houses. Therefore, net yield was determined by subtracting one existing house from the total site capacity.

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Housing Sites Map
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Location of Vacant Parcels
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3.414 Environmental Constraints Analysis
The analysis of environmental constraints to development of housing is provided in the discussion below.

1. Areas Subject to Flood Inundation in Event of Dam Failure The areas below Bear Gulch Reservoir and along Atherton Channel are subject to flooding if the Bear Gulch Dam were to fail. This dam is located within about 6,000 feet of the Cañada Fault zone and 10,500 feet of the San Andreas Fault zone30.

Residential development is precluded in the area immediately downstream from the dam by ownership by the California Water Service Company and by open space zoning and General Plan designation. None of these sites are included in the Town’s land inventory.

2. Areas Susceptible to Flooding
According to the Federal Insurance Administration, there are no areas in Atherton identified as flood prone. However, in the 1975 San Mateo County “Seismic and Safety Element” of the General Plan, a few areas in the Town of Atherton were identified as being located within the 100 Year Flood Zone. The main concentration of these areas is along the Atherton Channel with other scattered sites in the area west of El Camino Real. Areas susceptible to flooding do not have any impact on development potential.

3. Areas Subject to Wildland Fire Hazard
Areas identified on the Environmental Constraints map as subject to Wildland Fire Hazard are generally west of Alameda de las Pulgas in the vicinity of Bear Gulch Reservoir and along Walsh Road and Reservoir Road. Residential building is precluded around Bear Gulch Reservoir because of its ownership by the California Water Service Company, and the open space zoning and General Plan designation. The adopted Fire Code requires all buildings exceeding 1,000 square feet be sprinklered and that roofs be constructed of fire-resistant materials. All buildings in the wildland interface must have fire sprinklers to protect the interface from a dwelling fire incident. In addition, the Menlo Park Fire Protection District inspects the area annually and recommends homeowners to clear combustible vegetation near structures. This constraint requires mitigation but does not prevent residential construction.

3.415 Infrastructure Description
Adequate infrastructure exists throughout the entire Town to accommodate the existing and planned density of development. This includes existing paved streets, sewer, water supply for domestic and fire suppression purposes and drainage facilities. 30 County of San Mateo Geotechnical Hazard Synthesis Map ATTACHMENT 1
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Available public services include Police, Fire, Parks and Recreation, Public Works, Building Inspection and Town Administration.

There are no sites in the Town of Atherton identified as available for housing that are in areas not served by public sewer systems. Consequently, there are no sites identified as available for housing for any of the several income level households in areas not served by a public sewer system.

3.416 Zoning Appropriate to Accommodate the Development of Housing Affordable to Lower Income Households
The Town is required to provide sites suitable for construction of 204 lower income units (94 very low income, 54 low income and 56 moderate income). As described in section 3.812, based on experience in the last three years of the 5th RHNA cycle, the Town expects an average construction rate of 35 Accessory Dwelling Units per year, or 280 new ADUs during the RHNA 6th cycle. The Town expects that these units will be divided between very low- (30%), low- (30%), moderate- (30%) and above moderate- (10%) income categories based on the ABAG/UC Berkeley Affordability Study.

Therefore, it is projected that the number of ADUs produced in the lower income levels would be 252 units; 84 very low-, 84 low- and 84 moderate-income units. Current zoning is in place to accommodate construction of these ADUs. These would be located on scattered sites throughout the Town. It is impossible to know the precise location of those sites at this time.

A second source of housing affordable to lower income households is construction of faculty and staff housing on or adjacent to public and private schools. As described in section 3.813, current zoning permits multifamily housing development on properties in the PFS Zoning District (all public and private schools in Town are zoned PFS). The Town projects construction of 54 units of faculty and staff housing at the public and private schools during the 6th RHNA cycle; 14 units for very-low-income households, 10 units for low-income, 10 units for moderate-income, and 20 units at above-moderate income for a total of 54 units.

As described in section 3.813 B, California Water Service Co. has expressed interest in building an additional four dwelling units for very low-income staff at its Bear Gulch Reservoir site at 120 Reservoir Road. The Town plans to amend the POS Zoning District to accommodate the development of this affordable housing.

3.420 Analysis of Zoning that Encourages and Facilitates a Variety of Housing Types As required by State law, the Town allows factory-built housing or mobile homes on permanent foundations under the same terms applicable to other single-family homes in the R-1A and R-1B zones. The Town does not have architectural review/design reviewdsign of new homes, nor any specific design guidelines new construction is mandated to follow, and consequently does not impose architectural review on factory-built housing. Lastly, and related, there are no on-site covered parking requirements associated with the construction of any type of new housing.upe Multifamily rental housing and single-room occupancy units are permitted in the PFS zones when included in an approved master plan and with a use permit. Private Commented [1]: Revise when school production
determined
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school master plans are updated annually and presented to the Planning Commission for acceptance; use permits are also processed by the Planning Commission. Thus the entitlement process to allow multifamily rental housing and SRO units within the PFS zoning district is efficient and simultaneous. The private schools in Town work seamlessly with staff on such annual updates and are provided clear and concise direction as to the content of what such master plan is required to include. The Planning Commission will consider the annual master plan updates at a public meeting (most similar to a study session), but is not required to take any formal action. Multifamily housing now exists on the Menlo College site, and congregate housing for the retired religious on the Sacred Heart Schools site.

3.430 Identification of Adequate Sites for Emergency Shelters In 2010, Atherton established a zone that meets requirements set forth in SB2 relating to emergency shelters. The Town amended the existing PFS (Public Facilities and Schools) Zoning District to provide for emergency shelters as an allowable use when located within 500 feet of the Town Civic Center. Within this zone shelters are permitted without a conditional use permit or other discretionary action. The zone contains approximately 6 acres, which can accommodate up to three shelter beds, providing adequate capacity to meet the identified need. A typical shelter approximately 1,000 sq. ft. in size is allowed in this zone by right, and the Town has adopted management and other standards as permitted by State law.

3.440 Identification of Adequate Sites for Transitional and Supportive Housing In June 2010, Atherton amended the zoning code to explicitly state that any use is permitted if required by State law. Under this revision, supportive and transitional housing only need to obtain the same types of permits and approvals as the same type of residential development in that zone. Residential uses, including transitional and supportive housing, are permitted without discretionary permits in the following zones; R-1A and R-1B; and are permitted with a use permit in the PFS zone.

3.450 Identification of Adequate Sites for Farm Worker Housing As stated in previous sections, there are no agricultural jobs and no farm workers living in Atherton. The closest significant location of agricultural employment is located at least 30-minute drive away. Since there is no need for farm worker housing in Atherton, no sites are identified. See the Housing Needs section for more information on farm workers.

3.460 Other Housing Resources
The Town has no financial resources to spend on affordable housing. However, the Town is willing to consult with other agencies such as the County of San Mateo or nonprofit institutions in the County about resources that might be available to the Town for affordable housing.

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3.500 CONSTRAINTS ON HOUSING
This section contains analyses of potential governmental constraints contained in the Town ordinances, codes and policies that could constitute a barrier to the maintenance, improvement or development of housing for all income levels.

3.510 Governmental Constraints Analysis

3.511 Land Use Controls
The General Plan and Zoning Ordinance of a community are two primary tools for planning and regulating land use.

General Plan - The Town of Atherton updated its General Plan in 2020. The land use character of the Town has remained that of a mainly single family residential and institutional (e.g., schools) nature. The General Plan reveals that a significant constraint to housing development is land availability. There is little vacant developable land in the Town, and most of the Town's land acreage is developed at existing General Plan densities. The lack of land use categories and associated zoning districts that permit multifamily residential development is also considered a constraint to affordable housing development in its traditional sense.

Zoning Ordinance - The Atherton Zoning Ordinance designates land uses, height, bulk, density and parking standards throughout the towncity. The Zoning Ordinance was designed for consistency with the General Plan. The General Plan's four basic land use designations: Single-Family Residential, Single Family Residential Low Density, Public Facilities and Schools, and Parks and Open Space are directly reflected by the zoning districts of the R-1A (Single Family Residential one acre minimum), R-1B (Single Family Residential – 0.31 acre minimum), PFS (Public Facilities and Schools), and POS (Parks and Open Space). Table HVI-1 presents the Atherton Zoning Categories and Standards of density, setbacks, height limits, floor area ratios, lot coverage and parking requirements.

The zoning categories reflect the Town's low-density residential, large lot, single-family character. Commercial and industrial land uses are prohibited. The standards require large setbacks, limited floor area ratios and height restrictions. However, some standards are quite unrestrictive compared to other cities. For example, Atherton does not require on-site parking, nor is architectural or design review and approval required.

New single family residential development permits are processed administeriallyadministerially and most are submitted concurrentlyconcurrent for zoning clearing to the Planning Department and building permit issuance to the Building Department which assists in greatly expediting the permitting process. reeConsistent with State law, the Town allows factory-built housing or mobile homes on permanent foundations under the same terms applicable to other single-family homes.

Currently multifamily residential uses are permitted in the PFS (Public Facilities and Schools) zoning district when associated with primary nonresidential use of property on the same site. As noted previously, multifamily uses in the PFS district would require ATTACHMENT 1
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issuance of a Use Permit by the Planning Commission, but following such approval for use, could subsequently follow the same concurrent Planning and Building Department development process as described above for single family residential uses.

Accessory Dwelling Units (ADUs) are permitted in both the R-1A and R-1B zoning districts. The zoning ordinance was amended in 2003 and again in 2020 to make Accessory Dwelling Units permitted by right in the R-1 districts, exempt the ADU from floor area, and for compliance with State law. An accessory dwelling unit is allowed to encroach on 20 percent of the setbacks as the main dwelling and setbacks may be reduced to 4 feet in compliance with State law, however, may be limited in size to that allowed by State law. Detached accessory dwelling units are limited to 16 feet in height and 1,200 square feet of floor area.

Attached accessory dwelling units (additional living quarters inside homes) are permitted by right in both the R-1A and R-1B zoning districts. These may include a bedroom, a bath and kitchen elements (stove, sink, and refrigerator). Accessory dwelling units are commonly constructed in Atherton (approximately 30 - 35 per year).

Currently, the Zoning Title of the Atherton Municipal Code limits full time occupancy “guest houses”, pool houses and similar accessory buildings (occupancy is limited to a maximum of 30-days per year). This could be considered a constraint on the conversion or construction of such accessory buildings to an ADU. During the 2023- 2031 Housing Element cycle the Town will amend the Zoning title to eliminate this occupancy limitation, thus removing this constraint.

TABLE HE-6: ATHERTON'S ZONING CATEGORIES AND STANDARDS
Atherton's Zoning Categories and Standards
Zoning Density
Front Side Rear
Height
Limit FAR Max Lot Coverage
Parking
Required
Arch.

Approv
al Setbacks Setbacks Setbac
ks
R-1A
1 d.u./
acre
(Single Family 60’ 50’ 60’ 30* 18% N/A None None
Residential)
R-1B (Single
Family
Residential)
3 d.u./ac. 30’ 26’ 30’ 28’ 18% N/A None None
PFS (Public
Facilities and
Schools)
None 60’ 75’ 75’ 34’ N/A 40% None None
POS (Parks
and Open
Space)
None 60’ Varies 60’ 34’ N/A 20% None None
* 34’ maximum with increased setbacks and Special Structure Permit ATTACHMENT 1
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The Municipal Code and Ordinance provides a variety of lot sizes with densities ranging from one dwelling unit per five acres to three units per acre. Although the Town's low allowable densities constitute a constraint to affordable housing development, the impact is offset somewhat by the relatively large proportion of homes containing accessory dwelling units. In addition, Atherton's large homes provide opportunities for home sharing. These characteristics of the local housing stock assists the Town in meeting its regional share of affordable housing. Housing associated with the underlying use (including multifamily rental housing and single room occupancy units) is permitted in the PFS (Public Facilities and Schools) Zoning District.

3.512 Codes and Enforcement
The latest edition of the Uniform Building Code is enforced in Atherton. The Town's Building Department sees that new residences, additions, auxiliary structures, etc., meet all of the latest construction and safety standards. Building permits are required for any construction work. The Town has not adopted any local amendments to the State Housing Law or the Uniform Building Code. The Uniform Building Code is imposed by State law and does not pose an unusually significant constraint to housing development, maintenance or the supply and affordability of housing.

The Town has instituted a code enforcement program. This is primarily a land use enforcement, complaint-based program. Typical complaints and violations relate to noise, construction activity without a Building Permit and parking of contractors’ vehicles and has not resulted in housing being deemed unfit for human habitation or vacated. The code enforcement program does not pose a constraint to housing development, maintenance or the supply and affordability of housing.

3.513 On and Off-Site Improvement Requirements
The on and off-site improvements required for residential development in Atherton are listed below.

Street Width: 20 feet
Curbs and Gutters: Rolled curbs and gutters required for new subdivisions Sidewalks: Prohibited in new subdivisions.

Water and Sewer Connections: Required
Drainage: Storage improvements required to prevent increased runoff during storm conditions (required by the San Francisco Bay Area Regional Water Quality Control Board)
Since Atherton is a completely developed urban area, all streets are paved, water mains and sewer trunks have been installed and major drainage improvements are in ATTACHMENT 1
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place. Atherton’s improvement standards are substantially less restrictive than those imposed by many communities, which often require wider streets and additional offsite improvements. The on and off-site improvement requirements do not pose a constraint to housing development, maintenance or the supply and affordability of housing.

3.514 Fees and Exactions
In Atherton development fees are charged for both planning review and building permits. Planning fees are charged in order to recover the costs associated with the administration of the Town’s land use regulations. Planning fees for review of projects that do not require Planning Commission action (i.e., Staff level) are charged a flat fee shown in the table below.

TABLE HE-7: PLANNING REVIEW FEES (STAFF LEVEL) – 2021-2022 Town of Atherton Planning
Fees (Staff Level) 2021-2022
Type of Fee Fee
New Main
Residence $1,520
Residential
Additions $1,059
Accessory
Buildings & ADUs $1,032
Planning fees for projects that require Planning Commission action consist of a nonrefundable fee and a deposit, against which professional planning staff charge to provide review services. Charges currently range from $125 to $236 per hour depending upon the level of personnel involved in the review. Unused portions of the deposit are returned to the applicant at the end of the process. The fee structure reflects the Town’s actual cost for the service. The Town reviews its fee structure and levels on a regular basis to ensure they reflect the cost of delivering services. Typical planning fees are shown in the table below.

TABLE HE-7: PLANNING FEES (PLANNING COMMISSION)– 2021-2022 Town of Atherton Planning
Fees (Planning Commission)
2021-2022
Type of Fee Fee
Conditional Use
Permit $2,823
Variance $2,823
Lot Line
Adjustment $1,629
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The Atherton planning fees are less than other San Mateo County jurisdictions, are consistent with similar charges in other small jurisdictions, and do not pose a significant constraint to housing development, maintenance or the supply and affordability of housing.

Building fees are charged to cover costs associated with checking that the building plans conform to requirements of the Uniform Building Code (UBC) as well as costs associated with conducting building construction inspections. Fees charged for building permits are based on the valuation of construction. The fee structure reflects the Town’s actual cost for the service. The Town reviews its fee structure and levels on a regular basis to ensure they reflect the cost of delivering services. Currently new construction valuation is determined by use of a standard factor of $350 per square foot for habitable space and $125 per square foot for non-habitable space. The same factor is used for remodeling projects; however, the Building Department has the option to adjust the permitted value to the actual cost of the remodeling provided evidence is presented in the form of an executed contract substantiating the value.

The actual building permit fee is determined using the following formula: where construction is valued over $1,000,000 the fee is calculated as $6,193.74 for the first $1,000,000 plus $4.03 for each additional $1,000 or fraction thereof. An additional 45% of the building permit fee is charged for plan checking. For example, where construction is valued over $1,000,000 the fee is calculated as $6,193.74 for the first $1,000,000 plus $4.03 for each additional $1,000 or fraction thereof. An additional 45% of the building permit fee is charged for plan checking.

While not imposed by the Town, local school districts charge a fee that is based on the square footage of new construction and must be paid prior to issuance of the building permits. The purpose of the fee is to compensate the school districts for the costs associated with the demand for additional services and classroom space generated by new residential construction. The Sequoia Union High School District collects the fees and distributes a portion to one of the three elementary school districts serving Atherton (i.e., Las Lomitas School District, Menlo Park City School District and Redwood City School District). Currently the Sequoia District is $3.79 per square foot of residential construction with $1.52 (40%) distributed to the Sequoia District and $2.27 (60%) distributed to the Menlo Park District, Las Lomitas or Redwood City Districts.

The Town does not have any park, open space, parking or other similar development or impact fees. Nor does it have any in-lieu housing or other fees, below-market-rate housing requirements or specific land dedication requirements for streets, public utility rights-of-way, easements, parks or open space.

A recent survey by 21 Elements31 revealed that a 5,000 square foot house built in Atherton would have construction fees of $16,941 and no entitlement or impact fees (except for school fees, discussed above, which were excluded from the analysis).

The 21 Elements Fee Survey revealed all jurisdictions in San Mateo County who responded to the survey (18 including Atherton) had development fees for single 31 21 Elements: Development Fees Survey Summary, April 2022 ATTACHMENT 1
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family homes that were higher than Atherton’s; some had fees 2 and 3 times higher.

With fees substantially lower than those of adjacent communities, they do not pose a constraint on housing construction.

3.515 Processing and Permit Procedures
The following table describes the Town's permit process procedures in general. These processes are required for the development of all housing for all income categories.

Only two levels of residential permit processing are available; a Conditional Use Permit or a Building Permit. The Town does not have an Architectural/ Design Review and does have a staff-level approval process for the construction of new housing which helps both streamline and expedite the permitting process.

Most residential construction, including accessory dwelling units and guest houses (estimated 90 percent to 95 percent of building permits) does not require Planning Commission action or permits. Only Planning Department review of the project for conformance with Town zoning standards and Building Department review for Building Code conformance are required. These reviews for zoning clearance by the Planning Department and permit issuance by the Building Department can be processed concurrently, allowing for a much more efficient and streamlined permitting process than may be typically found in other jurisdictionsjurisdicitons. Staff routinelyroutlinely provides first round plan review comments within 10-working days and follow-up comments within 5-working days.The Town
Where Conditional Use Permits or Special Structure Permits are required, the process involves submitting an application to the Planning Commission for review of the proposal. Preliminary site plans and elevations are required as part of the submittal.

An advertised public hearing is held by the Planning Commission with mailed notice to all property owners within 500 ft. of the proposed project. Planning Commission meetings are held monthly and the Planning Department has a significantly quick turnaroundturnouarnd time from the point of an application submittal to scheduling the item on a Planning Commission agenda. Items are typically heard within 6-weeks of application submittal. Upon Planning Commission approval, plans may be submitted to the Building Department for Building Plan Check and Building Permit issuance.

Building permits must be secured before commencement of any residential construction, reconstruction, conversion, alteration or addition. Approval of permit applications is based on conformity with the Uniform Building Code and the Zoning Ordinance, although the Town has the power to grant variances from the terms of the Zoning Ordinance within the limitations provided in the Ordinance.

The Building Permit process has very little impact on the development of above moderate-income housing in Atherton as evidenced by building activity and the number of replacement housing units being constructed. The Building Department currently has approximately 800 active permits and approximately 25 - 35 houses are demolished and replaced with new houses each year. While removal of the process ATTACHMENT 1
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and reduction of fees might function to reduce costs slightly, there are many other factors that act to deter development of such housing. Factors such as the high cost of land (currently at about $8 million per acre), the limitations on density and nonavailability of funds (e.g., in the private educational institutions and from local public sources) are the most likely deterrents to the development of low and moderateincome housing.

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TABLE HE-8: RESIDENTIAL PERMIT PROCESSING PROCEDURES AND TIMES Residential Permit Processing Procedures and Times
Type of
Construction Use Permit Building Permit
Plan.

Commission
Public Hearing
Typical Time
for Staff Plan
Check &
Building Permit
Issue (weeks)
Single Family
Residential X 4
Accessory
Dwelling Unit X 4
Guest House X 4
Housing on
PFS Sites X X X 9
The Town does not have any overlay zones such as community plan implementation zones, hillside overlay zones or environmentally sensitive areas.

Atherton has only two residential zoning districts; R-1A where the minimum lot size is 1 acre and R-1B where the minimum lot size is 13,500 square feet. Single family detached dwelling units, second dwelling units and guest houses are permitted by right in these districts. Attached and multiple family dwelling units are not currently permitted in either district. All construction in PFS zoning districts, including attached and multiple family dwelling units and single room occupancy units require a conditional use permit. Housing in PFS zoning districts is permitted when the residential use is associated with a conditional or permitted use in that district. Such residential uses are typically associated with private schools. Housing in POS zoning districts is allowed for caretaker housing associated with the primary use on the site.

3.516 Constraints on Persons with Disabilities
Chapter 17.17 of the Atherton Municipal Code entitled “Accessibility” provides for reasonable accommodation to people with disabilities and complies with the Fair Housing Amendments Act of 1988 and the California Fair Employment and Housing Act in the application of the Town’s land use, zoning, rules, policies, practices, and/or procedures.
“A request for reasonable accommodation may include a request for modification or exception to Town land use, zoning or building regulations, rules, policies, practices, and/or procedures that would eliminate regulatory barriers and provide a person with a disability equal opportunity to housing. The procedure provides for a staff-level process, conducted by the Town Planner, when the accommodation is related to a physical improvement that cannot be constructed to conform to athe Town ’s setback or design standards. Should it be determined that the request is not at a stafflevel it is referred to the Planning Commission. The Town Planner is required to make a written determination within 30 days after receipt.” These applications are routinely ATTACHMENT 1
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approved ministerially by staff for a determination of consistency with the purpose and intent of the Ordinance which states, :this chapter provides a process for individuals with disabilities to make requests for reasonable accommodationaccomodation for relief from the various land use, zoning, or rules, policies, practices, and/or procedures of the town. It is the policy of the town, pursuant to the Federal Fair Housing Act (as amended), to provide people with disabilities reasonable accommodationaccomodate in rules, policies, and procedures that may be necessary to ensure equal access to housing.” The application submittal materials and process are objective, streamlined and efficient, and require only a brief written narrative describing the develeopment standard in which an exception is requested, why the reasonable accommodationaccomodation is being requested and a brief statement from t he applicant’s doctor stating the person’s disability. To further reduce any potential constraintsconstruaints, the Town will modify the language within Chapter 17.17 to remove any potential discretionary review from the Planning Commission for such requests and to specify all such requests shall be approved administratively by the Town Planner .

Chapter 17.17 also provides a process for requests for reasonable accommodation relating to increased occupancy of a group home.

The Town does not define the term “family” and does not limit the number of unrelated individuals who may reside in a residence. Group homes for six or fewer residents are allowed by right in the single-family residential districts. The Town does not have any spacing or concentration requirements. The Town has only two residential zoning districts; both of which are for single family residences. Therefore, allowances for group homes with more than six residents specifically for the disabled in other zoning districts are not necessary. The Town does not have any parking standards therefore there is no need for relaxed parking standards for persons with disabilities.

Atherton uses the 2019 California Building Code. The adopted Code does not include any amendments that might reduce the ability to accommodate persons with disabilities. Accessibility retrofits are handled through the standard permit process.

However, permits are not required unless thresholds of health, life, and safety are exceeded. The California Building Code provides an option for meeting code requirements, whereby an applicant submits an alternative “methods and means” checklist to the Building Official noting the proposed design, the conventional design, and the rationale for the request.

3.520 Non-Governmental Constraints Analysis

3.521 Land Prices
Land scarcity and high real estate prices are the most significant non-governmental constraints to affordable housing in Atherton. There are virtually no vacant lots in Atherton. Land currently sells for approximately $8 million dollars per acre and can only be acquired by purchase of a developed parcel or by subdividing the property, ATTACHMENT 1
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which also most likely involves the removal of an existing residence. The inventory of sites suitable for residential development described in section 3.4 shows a potential of approximately 110 new parcels that can be created by subdividing existing developed parcels.

3.522 Construction Costs32
Construction costs include both hard costs, such as labor and materials, and soft costs, such as architectural and engineering services, development fees and insurance. For multi-family homes in San Mateo County, hard costs account for approximately 65 percent of the building cost and soft costs average around 21 percent (the remaining 14 percent is land costs). For single family homes, hard costs often are roughly 44-59 percent of the total cost, soft costs are 14-17 percent, and land is 24-42 percent.

While multifamily construction is less relevant in most of the town, it is relevant on school facilities. According to housing developers in San Mateo County, construction costs for multi-unit buildings vary based on the form of parking (structured vs. surface) in addition to other environmental factors such as topography, pre-existing structures etc. For smaller and larger multi-unit buildings, costs can range from $633-$1,174 per square foot.

For a 2,600 square foot single-family home the average cost of construction is approximately $420/sf. For a more expensive, 5,000 square foot home, however, the construction costs can average $525/sf. In general, soft costs add another approximate 20-25% to the subtotal. Such costs are not particularly higher in Atherton than in other surrounding jurisdictions.
32 Century Urban LLC, Memo to Baird + Driskell, San Mateo and Santa Clara Counties Development Cost & San Mateo Unit Mix Research, April 7, 2022.

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3.600 REVIEW OF 2015-2022 HOUSING ELEMENT

PERFORMANCE

3.610 Effectiveness of the Element
This update of the Atherton housing element provides an opportunity to reflect on past achievements and challenges, identifying what is working and what is getting in the way in meeting Atherton’s housing needs.

A detailed analysis of the goals, objectives, policies and programs contained in the 2015-2022 Housing Element Update is presented in Table HE-11 below.

3.620 Progress in Implementation
A comparison of the number of projected or planned housing units (i.e., 2015-2022 Housing Need Allocation) with what was actually achieved is summarized in Table HE10 below.

TABLE HE-10: PROGRESS IN IMPLEMENTATION
2015-2022 Actual RHNA Achievement
Income Group 2015-2022
Allocation
Private
Constructi
on
Accessory
Dwelling Unit
Program
Total Met (M),
Exceeded (E), or
Fell Short (S) of
Goal
Very Low 35 - 72 72 E
Low 26 - 22 22 S
Moderate 29 - 21 21 S
Above Moderate 3 132 132 E
Totals 93 132 115 247 E
Note: Totals through Dec. 2021
The following summary highlights key accomplishments and challenges from the previous housing element’s planning period (2015 to 2022). This information will help ensure that the updated element for 2023 to 2031 builds on success, responds to lessons learned and positions us to better achieve our community’s housing priorities.

A more detailed program-by-program review of progress and performance is in Table HE-11.

There were a number of notable accomplishments related to implementation of the Atherton housing element over the past eight years:

Accessory dwelling units, or ADUs (often referred to as second units or in-law units) have become increasingly popular after the Town adopted amendments to the ADU ordinance, most recently in 2020. Prominent Ordinance revisions which support this projection and increased production trend from prior years beyond those ATTACHMENT 1
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amendments as prescribed by Government Code Sections 65852.2 and 65852.22 included additional floor area exemption up to 1,200 square feet beyond the first 800 square feet and increased public education on the construction of ADUs. It is noted that within from January 1 – October 31, 2022, the Town has received 27 new ADU permits and 6 new JADU permits. Additionally, results from a recent Town-wide survey indicated a significantly high level of interest from property owners to either convert existing building area into an ADU and/or to construct a new ADU, all for purposes of future rental ability. . The total number of ADUs permitted and/or constructed between 2015 and 2021 (the last year with data available) was 115. This exceeded the Town’s RHNA allocation by 25 units. This is important, not only because ADU construction is the most viable form of new housing in Atherton, but also because rental surveys of ADUs show that these kinds of units are more affordable.

The Town approved dormitory housing consisting of 147 units or a total of 291 beds at Menlo College. Of these, 19 of the units were dedicated for low-income students with incomes at or below 80% of the Area Median Income (AMI). The new dormitory housing alleviated demand for other units from students and housed a number of students who were previously unhoused.

Construction of new Above Moderate market rate housing also exceeded the Town’s RHNA allocation. A total of 9 net new Above Moderate market housing units were constructed during the 2015-2022 cycle. On the required CA Dept. of Housing and Community Development (HCD) form the summary Table B only counts newly constructed units and does not account for demolished units. There were 132 new units constructed and 123 existing units demolished.

While the Town has several achievements, there is still work to be done. Some of the challenges that kept the Town from achieving all of its housing goals include:

The Town does not have any commercial activity – which means there are no retail sales taxes, commercial development impact fees or other related sources of revenue available to other cities. The Town has very restricted tax revenue. This restricts the option of financial incentives or participation by the Town in building new and affordable housing.

During the Planning Period it was anticipated that new housing would be constructed at Menlo School and Menlo College. A net of eleven new faculty units affordable to very low- and moderate-income households were planned at Menlo School and 79 new units affordable to lower income and moderate-income households were planned at Menlo College. Although the plans for these units remain on the Master Plans for these institutions there were insufficient funds available to construct them during the Planning Period. It is recommended that this program be carried forward to the 2023-2031 Planning Period.

3.630 Future Opportunities
There are some things already in motion based on existing work efforts and trends and lessons learned that may be considered for incorporation in the updated housing element.

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● Imposition of an affordable housing impact fee on single family building permits to fund programs to assist in development and assistance for affordable housing.
● Implementation and promotion of SB 9 lot splits.
● Expansion of ADU programs through the consideration of various development and incentive programs.

TABLE HE-11: Analysis of the Objectives, Programs contained in the 2015-2022 Housing Element Update
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Housing Element
Program Name/Number
Program Description
and Objective
Timeframe and
Achievements
Program Evaluation and
Recommendation

3.710 New Construction, Conservation, and Rehabilitation

3.711 New Construction of
Above Moderate Units
Continue to facilitate and expedite the
development of new above moderateincome housing units in order to achieve the construction of net 3 new above
moderate-income units.
(2015-21) A net of 9 new units were
constructed during this period. Although
the HCD Annual Progress Report shows 132
new units, that does not account for
demolished units. Market has limited
construction to reconstruct 1 unit for each
demolished unit.

Objective met and exceeded.

3.712 New Construction of
Affordable Units
During the previous RHNA cycle the
Town amended the Zoning Ordinance
to remove constraints on the
development of ADUs. During the 2015-
22 cycle the Zoning Ordinance was
amended to conform to new ADU
provisions in State law. Continue to
facilitate and expedite the construction
of new affordable units in order to
achieve 90 new affordable units.
(2015-21) 115 new ADUs were constructed
during this time frame. Construction
increased as a result of zoning ordinance
changes.

Objective met and exceeded. This
program has been effective in
providing housing for lower income
families and individuals. Recommend
continuance.

3.712a Conduct Affordability
Surveys
This program called for housing
affordability surveys to be conducted
every two years. In lieu of conducting
surveys, the Town has chosen to request
affordability information from each new
ADU developer/owner at the time of
Building Permit issuance.
(2015-22) Affordability surveys are required
from each new ADU developer/owner at
the time of Building Permit issuance.

Objective met. This program has been
effective in providing ADU affordability
information. Recommend
continuance.

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Town of Atherton 2023-2031 Housing Element – DRAFT 89
November August 2022

3.712b New Construction of
Affordable Faculty,
Student and Staff
Housing on Private
Schools’ Property
Work and cooperate with Menlo School,
Menlo College and Sacred Heart
Schools to facilitate development of
affordable faculty, student and staff
housing on school properties and
provide incentives for development
through an expedited review process.
(2015-22) In 2020-21 the Town approved
dormitory housing consisting of 147 units or
a total of 291 beds at Menlo College. Of
these, 19 of the units were dedicated for
low-income students with incomes at or less
than 80% of the Area Median Income
(AMI).

Objective partially met. This program
has been effective in providing
housing for 19 lower income students
at Menlo College. Recommend
continuance.

3.712b
(cont’d)
Additional Affordable
Housing at Oakwood
Community at Sacred
Heart Schools
The Oakwood Community at Sacred
Heart Schools is currently developed
with housing for the retired religious in a
“single room occupancy” style. These
units are all affordable to extremely lowincome households. The program allows for expansion of the housing should
demand warrant.
(2015-22) During the prior RHNA cycle the
Town amended its Zoning Ordinance to
allow multi-family residential uses that
provide housing for very low- and lowincome households. Discretionary review is required related to the location, size,
proximity to heritage trees and
environmental aspects of the project but
may not result in the denial of the use. A
project is currently proposed at Oakwood
consisting of the addition of 5 new rooms
for permanent occupancy and 3 new
guest rooms.

Objective is being met, no changes to
Ordinance are recommended. This
program has been effective in
providing housing for lower income
individuals. Recommend
continuance.

3.712b
(cont’d)
Faculty and Student
Housing
Annually, at the time for review of their
master plans, work with private schools
to facilitate development of affordable,
multifamily faculty, student, and staff
housing on their properties. Achieve
construction of 11 new faculty units at
Menlo School, 79 new faculty and
student units at Menlo College. It is
anticipated that about 1/3 of the units
will be rented in the extremely lowincome category.
(2015-22) The Town has annually worked
private schools to facilitate development of
affordable, multifamily faculty, student, and
staff housing on their properties. During this
cycle the schools were only partially able to
achieve their goals due, in part to
unavailability of funds. In 2020-21 the Town
approved dormitory housing consisting of
147 units or a total of 291 beds at Menlo
College. Of these, 19 of the units were
dedicated for low-income students with
incomes at or below 80% of the Area
Median Income (AMI).

Objective partially met. Recommend
that Town continue to work with
private schools to meet objectives.

3.712c Maintain Contact with
Affordable Housing
Developers
Continue to maintain contacts with
agencies and developers of affordable
housing in the mid-peninsula area in
order to consult about resources that
might be available to and from the
Town for affordable housing. Contacts
exist with agencies such as the San
(2015-22) Town Staff continues to maintain
contact with agencies and developers of
affordable housing in the mid-peninsula
area. The Town offers expedited planning
and building processing through use of
contract plan checking services and
support for applications for funding.

Objective met.

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Town of Atherton 2023-2031 Housing Element – DRAFT 90
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Mateo County Department of Housing
and Community Development, nonprofit developers such as MidPen Housing, Bridge Housing and Habitat for
Humanity.

3.713 Conservation and
Rehabilitation of
Existing Units
Continue to facilitate and expedite the
rehabilitation and reconstruction of
existing housing through improved
review times and project assistance.
(2015-22) Between 50 and 100 permits
issued each year for improvement,
rehabilitation and conservation of existing
units.

Objective met. Recommend
continued implementation.

3.720 Special Housing Needs

3.721 Seniors See Actions 3.721a through 3.721d
below.

3.721a Residential Care
Facilities
Continue to facilitate the provision of
board and care opportunities,
particularly for seniors, some of whom
may be longtime Atherton residents who
can no longer remain in their homes and
who wish to continue living in Atherton.

State law provides that a residential
care facility (defined as a facility serving
six or fewer persons) is a residential use
and must be permitted wherever
residential uses are allowed, specifically
in the R-1A and R-1B zones.
(2015-22) Zoning Ordinance was amended
in 12/2010 to state that a residential care
facility is a residential use and must be
permitted wherever residential uses are
allowed, specifically in the R-1A and R-1B
zones.

Objective met. Recommend program
continuance.

3.721b Home Repairs
Assistance
Publicize at Town Hall and in the Town's
newsletter home repairs assistance
programs offered by Senior Centers in
the County and the County's Home
Repair Program.
(2015-22) Handouts provided at Town Hall
publicizing repairs assistance programs
offered by Senior Centers in the County
and the County's Home Repair Program.

Publication in Town's newsletter was not
accomplished. Program publicized on
Town website in lieu of in newsletter.

Objective met. Recommend program
continuance.

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Town of Atherton 2023-2031 Housing Element – DRAFT 91
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3.721c Property Tax
Postponement Program
Continue to support the County's
Property Tax Postponement Program to
support seniors in staying in their homes.

Publicize the program at Town Hall and
in the Town newsletter.
(2015-22) City Council's declaration of
support of the County's Property Tax
Postponement Program stated in adopted
Housing Element. Handouts provided at
Town Hall publicizing the program.

Program publicized on Town website in lieu
of in newsletter.

Objective met. Recommend program
continuance.

3.721d Create Senior Friendly
Plan
The Town will create a plan to meet the
needs of the growing senior population,
which will double over the next decade
and a half. The best way to identify the
necessary changes to ensure that
Atherton is senior friendly is to conduct a
thoughtful process, receiving input from
various stakeholders and then identifying
the policies and programs which are
right for Atherton.
(2015-22) This program was not
implemented during this cycle because of
a lack of funding. There appears to be little
interest in developing this type of program
in Atherton.

Objective not met. Recommend
abandon program.

3.722 Disabled and
Developmentally
Delayed Persons
See Actions 3.722a through 3.722c
below.

3.722a ADA Compliance Continue to review new residential developments and major remodels for
ADA compliance.
(2015-22) Building Department on-going
program.

Objective met. Recommend program
continuance.

3.722b County Housing
Accessibility for
Disabled Persons
Program
Continue to support the program, direct
inquiries for house modifications for the
disabled to the program and publicize
the program at Town Hall and through
the Town's newsletter.
(2015-22) City Council's declaration of
support of the County Housing Accessibility
for Disabled Persons Program stated in the
adopted Housing Element. Building and
Planning Dept. staff directs inquiries for
house modifications for the disabled to the
program. Handouts provided at Town Hall
publicizing the program. Program
publicized on Town website in lieu of in
newsletter.

Objective met. Recommend program
continuance.

3.722c Information on Housing
and Services Available
for Persons with
Developmental
Disabilities
Work with the Golden Gate regional
center to implement an outreach
program that informs families within the
city on housing and services available
for persons with developmental
disabilities. The program could include
the development of an informational
(2015-22) City Council’s declaration of
support for the Golden Gate regional
center to implement an outreach program
that informs families within the City on
housing and services available for persons
with developmental disabilities. Planning
Dept. staff directs inquiries for housing and
Objective met. Recommend program
continuance.

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brochure, including information on
services on the City’s website, and
providing housing-related training for
individuals/families through workshops.
services for the developmentally disabled
to the program. Handouts provided at
Town Hall publicizing the program.

Program publicized on Town website in lieu
of in newsletter.

3.723a Equal Housing
Opportunity
Refer housing discrimination complaints
to Midpeninsula Citizens for Fair Housing.

Disseminate fair housing information at
various sites and through the Town
newsletter and website.
(2015-22) Planning Dept. and City Attorney's
Office on-going program. Fair Housing
information available at Planning Dept. and
City Attorney's office. Program publicized
on Town website in lieu of in newsletter.

Objective met. Recommend program
continuance.

3.724a Emergency Shelters,
Transitional and
Supportive Housing
Continue to support the possibility of
Emergency Shelters, Transitional Housing,
and Supportive Housing in Atherton.
(2015-22) During the previous cycle the
Public Facilities and Schools zoning district
was amended to allow emergency shelters
as a non-conditional use when located
within the Town Civic Center property.

Objective met.

3.730 Consistency with State Requirements

3.731 Energy Conservation See Actions 3.731a through 3.731c below.

3.731a Title 24 Compliance Continue to require Title 24 compliance, and disseminate information on other
agency's energy conservation programs,
such as PG&E's solar subsidy program
and energy audits.
(2015-22) Building Dept. continues to require
Title 24 compliance, and disseminate
information on other agency's energy
conservation programs, such as PG&E's
solar subsidy program and energy audits.

Objective met. Recommend
program continuance.

3.731b Green Building Continue to support Green Building in Atherton through upholding the Green
Building Ordinance.
(2015-22) Building Dept. continues to
implement and enforce the Green Building
Ordinance.

Objective met. Recommend
program continuance.

3.731c Energy Conservation
Promotion
Continue to promote energy
conservation through energy audits,
participation in PG&E and Cal Water
programs, and encouraging
conservation retrofits.
(2015-22) Building Dept. and Public Works
Dept. continues to promote energy
conservation through energy audits,
participation in PG&E and Cal Water
programs, and encouraging conservation
retrofits.

Objective met. Recommend
program continuance.

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3.731d Employee Housing Ensure that the city is in compliance with State Health and Safety Code Sections
17021.5, which concerns employee
housing that serves six or fewer
employees.
(2015-22) It was determined that the Town is
in compliance with State Health and Safety
Code Sections 17021.5, which concerns
employee housing that serves six or fewer
employees.

Objective met.

3.740 Other Housing Programs

3.741 Shared Housing

3.741a Shared Housing The Town will continue to support the Human Investment Program (HIP), a nonprofit organization that matches people needing housing and people owning a
home who desire additional income
and/or companionship. The Town will
make information about the Home
Sharing program available at Town Hall
and will publicize the effort through the
Town’s newsletter.
(2015-22) Planning Dept. and on-going
program. HIP Home Sharing information
available at Planning Dept. Program
publicized on Town website in lieu of in
newsletter.

Objective met. Recommend
program continuance.

ATTACHMENT 1
Town of Atherton 2023-2031 Housing Element – DRAFT 94
November August 2022

3.700 HOUSING GOALS, QUANTIFIED OBJECTIVES AND POLICIES This section contains the Housing Goals, Quantified Objectives and Policies of the Town.

These goals, objectives and policies will be implemented by the Housing Programs described in Section 3.800 of this Element.

3.710 GOAL: FACILITATE THE PRIVATE DEVELOPMENT OF HOUSING TO MEET THE

ABOVE MODERATE INCOME HOUSING NEED IDENTIFIED FOR ATHERTON

3.711 OBJECTIVES
A. Realize the construction of approximately 150 net new housing units in the above-moderate income category in Atherton from 2023-2031.

3.712 POLICIES
A. Within the limitations of the private housing market the Town shall work with private developers to encourage new housing development.

3.720 GOAL: USE ACCESSORY DWELLING UNITS TO MEET A SUBSTANTIAL PORTION OF THE TOWN’S MODERATE TO VERY LOW-INCOME HOUSING NEED.

3.721 OBJECTIVES
A. Realize the construction of 280 new accessory dwelling units planned for occupancy by moderate to extremely low-income households in Atherton from 2023-2031.

B. Partner with a non-profit organization to facilitate and promote the availability and the rental of ADU and JADU units.

3.722 POLICIES
A. Actively promote the Accessory Dwelling Unit provision of the Atherton Zoning Ordinance by encouraging homeowners and developers to include attached or detached Accessory Dwelling Units in existing or new homes.

A.B. Comprehensively update the Town’s Accessory Dwelling Unit (ADU) Ordinance to amend any identified zoning development standards which may unduly constrain development of ADUs. Formatted: Font color: Auto ATTACHMENT 1
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3.730 GOAL: FACILITATE THE DEVELOPMENT OF FACULTY AND STUDENT HOUSING

ON OR NEAR SCHOOL CAMPUSES TO MEET A PORTION OF THE MODERATE

AND VERY LOW-INCOME HOUSING NEED IDENTIFIED FOR ATHERTON

3.731 OBJECTIVES
A. Encourage the construction of 34 new faculty housing units at private and public schools in the moderate to very low-income categories in Atherton from 2023-2031.

3.732 POLICIES
A. Encourage schools in Atherton to provide affordable faculty, staff and student housing on and or near their campuses.

3.740 GOAL: FACILITATE THE DEVELOPMENT OF ADDITIONAL AFFORDABLE

HOUSING AT THE CALWATER BEAR GULCH RESERVOIR SITE

3.741 OBJECTIVES
A. Encourage CalWater Company to develop new housing on its Bear Gulch property.

3.742 POLICIES
A. Encourage the construction of 4 new housing units at the Bear Gulch Reservoir property in Atherton from 2023-2031.

3.750 GOAL: PROMOTE PRIVATE EFFORTS TO CONSERVE AND IMPROVE ATHERTON’S EXISTING HOUSING SUPPLY.

3.751 OBJECTIVES
A. Promote the improvement, maintenance and enhancement of the existing housing stock through ongoing private and public rehabilitation efforts, with the objective of processing 1,000 applications for rehabilitation and home improvement between 2023 and 2031.

3.752 POLICIES
A. The Town shall promote conservation and improvement of the condition of its existing affordable housing stock with the goal of conserving all existing affordable units.

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3.760 GOAL: ENCOURAGE SPECIAL CONSIDERATION TO THE MAINTENANCE AND

EXPANSION OF HOUSING OPPORTUNITIES FOR HANDICAPPED AND LOW AND MODERATE INCOME AND HOMELESS PERSONS.

3.761 OBJECTIVES
A. Enforce uniform building code regulations regarding provision of access for handicapped in residential structures, where applicable.

B. Support the conservation and development of affordable housing for citizens of modest means.

3.762 POLICIES
A. The Town shall continue to enforce the uniform building code regulations regarding provision of handicapped access in residential structures.

B. The Town shall continue to encourage the production and availability of more affordable housing through the development of new accessory dwelling units, and private and public-school faculty and student housing.

C. The Town shall cooperate with agencies providing emergency shelter, transitional and supportive housing for the homeless and those in crisis.

3.770 GOAL: MEET THE NEEDS OF SENIORS, IN LIGHT OF THE PENDING GROWTH OF THIS POPULATION IN SAN MATEO COUNTY.

3.771 OBJECTIVES
A. Assist in meeting the needs of senior residents.

3.772 POLICIES
A. Enforce uniform building code regulations regarding provision of access for handicapped in residential structures, where applicable.

B. Support the conservation and development of affordable housing for seniors with lower incomes.

C. Process requests for accessibility accommodations.

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D. Encourage policies that enable seniors to “age in place” as much as possible.

E. Continue to encourage the development of accessory dwelling units, which can provide an affordable option for seniors.

F. Identify and prioritize steps that Atherton can take to meet the needs of seniors.

3.780 GOAL: CONTINUE TO PROMOTE HOUSING OPPORTUNITIES FOR ALL PERSONS

REGARDLESS OF RACE, SEX, MARITAL STATUS, ANCESTRY, NATIONAL ORIGIN

OR COLOR

3.781 OBJECTIVES
A. Eliminate discrimination in housing to the extent feasible through Town actions.

3.782 POLICIES
A. The Town shall actively support housing opportunities for all persons regardless of race, sex, marital status, ancestry, national origin or color.

3.790 GOAL: SUPPORT EFFORTS TO AFFIRMATIVELY FURTHER FAIR HOUSING IN ATHERTON.

3.791 POLICES:

A. Regional Housing Trust Fund or Other Regional Collaboration:

Support a regional Housing Trust Fund that is funded by a diversity of jurisdictions and allocated to communities based on poverty, cost burden, and segregation. The fund could support affordable housing production, community amenities, last/first month’s security deposits, down payment assistance, etc. Pair assistance with affirmative marketing to households with disproportionate housing needs including Black and Hispanic households.

B. Promote Affordable ADUs and JADUs: Develop a program that would connect service providers that help displaced renters with ADU owners in Atherton that want to rent to low-income renters. Develop assistance programs for JADUs to make alterations easier and more cost ATTACHMENT 1
Town of Atherton 2023-2031 Housing Element – DRAFT 98
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effective so that additional units can be developed within the existing building envelope of houses and made available at more affordable rates.

C. Rental Assistance Program: The City Council will appoint a committee to convene a discussion with BIPOC (Black, Indigenous and People of Color) populations who are experiencing comparatively high rates of cost burden to discuss solutions for relief and consider rental assistance programs tailored to extremely high-cost burdened residents.

D. Promote Fair Housing Information: Update the Town’s website to include fair housing including resources for residents who feel they have experienced discrimination, information about filing fair housing complaints with HCE or HUD, and information about protected classes under the Fair Housing Act.

E. Fair Housing Training: The City Council will appoint a committee to partner with Project Sentinel, or another affordable housing organization, to perform fair housing training for property owners, real estate agents and tenants across the region. Focus enforcement efforts on race-based discrimination and reasonable accommodations.

F. Human Investment Program (HIP) operates a Homesharing Program in the Town. The Homesharing Program places residents seeking housing with residents open to sharing (renting) a portion of their home. Five residents contacted HIP Housing to learn more about other programs as well as to discuss affordable housing opportunities in San Mateo County.

One resident applied to HIP Housing’s Home Sharing Program and worked with a Home Sharing Coordinator to receive home sharing referrals, community resources, as well as ongoing information about affordable housing opportunities including waiting list opening information.

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Town of Atherton 2023-2031 Housing Element – DRAFT 99
November August 2022

3.800 HOUSING PROGRAMS
This section contains Atherton’s Housing Programs for the Planning Period 2023 – 2031.

Table HE-12 presents a summary of the number of dwelling units projected to be constructed due to ongoing and proposed programs in Atherton. Those programs include maintaining and/or exceeding existing levels of new Accessory Dwelling Unit (ADU) production, lot splits and new unit development pursuant to SB 9, development of vacant sites, and increased housing production on school sites and property belonging to CalWater. These programs are elaborated upon within this chapter.

Table HE-12: Summary of Projected Dwelling Units
Very LowLow Mod Above Mod Total
ADUs 84 84 84 28 280
Lot Splits (SB9) 96 96
Vacant Sites 10 10
School & Facility sites 14 10 10 20 54
Total 98 94 94 154 440
RHNA 94 54 56 144 348
Amount above or below RHNA +4 +40 +38 +10 +92
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3.810 New Construction, Conservation and Rehabilitation

3.811 New Construction of Above Moderate-Income Units
A. New Single Family Housing Development: Continue to facilitate and expedite the development of new above moderate-income housing units.

An average of 25 new single-family homes in this income category are constructed in Atherton each year. However, an almost equal number of homes are demolished. A net of 9 new above moderate-income units were constructed in the Town during the first seven years of the 2015-2022 Planning Period. It is projected that a net of 10 additional homes in the above moderate-income category will be constructed during the 2023- 2031 Planning Period based on the 2015-2022 Planning Period experience.

Appendix 5, the inventory of opportunity sites, includes a list of vacant properties.

B. New Single Family Housing Development from SB9 Implementation:

It is projected that approximately 96 new above moderate-income housing units will result from lot splits and new housing development facilitated by the 2021 SB 9 State law (GC section 65852.21) during the 2023-2031 Planning Period.

Recently enacted legislation known as Senate Bill 9 or SB 9 waives discretionary review and public hearings for building two homes on a parcel in a single-family zone and subdividing a lot into two that can be smaller than the previously required minimum size. The legislation became effective on January 1, 2022.

In early 2022 the Town adopted an implementing ordinance consistent with state law to provide property owners clarity for the development opportunities under SB 9. The ordinance allows new lots created under the provisions of SB 9 to utilize the existing development standards for the base zoning district. A new residence built on a lot created through an SB 9 lot split can use the same setbacks, floor area ratio, building heights and other standards as provided for any existing lot in the same zoning district. This contrasts with the approach taken by several similar jurisdictions to Atherton to limit the size of units on new lots created through SB 9 to a maximum of 800 square feet.

Prior to the adoption of SB 9, the minimum resulting lot size for a subdivision in Atherton was one acre. The status quo of larger lots with expansive lawns and well screened homes makes Atherton distinct among other Bay Area communities, where it is more prevalent to find 6-8 single-family homes per one acre. Whereas other communities have likely maximized their potential for single-family development, Atherton is uniquely situated to see additional lot splits and new housing development result from SB 9.

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The Town anticipates that SB 9 applications will be more common on lots of at least one acre in size that contain an older residence. The Town has found that there are 606 lots of an acre or greater in size with a residence built before 1970. These lots present a tremendous pool of homeowners who may be interested in pursuing SB 9 lot splits. The Town expects sites selected for SB 9 lot splits and the creation of additional units to be distributed throughout the Town.

In addition to the sites listed below, staff has spoken with several developers and there is support for additional SB 9 lot splits throughout Town on parcels of varying sizes.

The projected interest in pursuing SB 9 projects in Atherton has been borne out in the first few months of the law’s applicability. During the first four months of calendar year 2022 Atherton received four applications for SB 9 subdivisions that would result in a total of 7 net new dwelling units as listed in Table HE-13.

Table HE-13: Existing and Potential SB-9 Project Sites
Address Existing Lot Size Net New
Units
Application Submitted
78 Cebalo 0.55 2 Yes
2 Lowery 1.2 3 Yes - Approved
125 Glenwood 1.03 1 Yes
94 Palmer 0.55 1 Yes
47 Santiago 2.53 1
190 Selby 1.00 3
197 Glenwood 1.29 2 Yes
During the same period the Town Staff has had discussions with three additional property owners about potential applications in the earlier exploratory stages that would result in another 6 net new dwelling units. All of these SB 9 units would be in the above moderate-income category.

Assuming this trend continues, Atherton should receive applications ATTACHMENT 1
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resulting in an average of 9 to 32 net new dwelling units per year in the future. Projecting forward, as awareness around SB 9 increases, the Town reasonably expects the number of such applications to increase in kind.

Atherton conservatively projects an average of twelve net new dwelling units per year will result from SB 9 property divisions and construction of two homes on a single parcel. Therefore, over the 2023-2031 RHNA cycle a total of 96 net new homes are forecasted to be constructed in Atherton as a result of SB 9. All of these are projected to be in the above moderateincome category.

SB 9 Applications and Interested Sites

3.812 New Construction of Affordable Accessory Dwelling Units In 2020, the Town amended the Zoning Ordinance to encourage the development of accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs)by removing constraints on their development and providing other incentives including exempting the ADU floor area from the maximum site floor area limit. During the last 3 years of the 5th RHNA cycle, the Town issued an annual average of 35.3 building permits per year for attached and detached ADUs. In 2020, permits were issued for 34 ADUs, in ATTACHMENT 1
Town of Atherton 2023-2031 Housing Element – DRAFT 103
November August 2022
2021, permits were issued for 32 ADUs, and in the first three months of 2022, permits were issued for 3 ADUs and an additional 9 ADUs had received Planning Department approval. From January 1 - OctoberOctobere 31, 2022, the Town has receivedrecerivefd 27 new ADU permits and 6 new JADU permits for a total of 33 new housing units. Projecting the 12 ADU permits issued or approved in the first three months of 2022 to the full year, a total of 40 units should be permitted in 2022.

The Town has not identified any constraints to ADU construction. ADU plans are approved ministerially with minimal objective design standards, the Town does not impose impact fees and as discussed earlier, given the large size of Atherton properties, there is adequate land available to build attached and detached ADUs and JADUs. The most effective incentive to realize construction of ADUs has been the 1,200 square feet of exempt floor area and 500 square feet of exempt floor area for JADUs. This allows homeowners to build an ADU and a JADU without impacting the size of their main dwelling. Many residents at the Town held community meeting expressed interest in building a new ADU or renting their existing guest house when the code is updated.

The Town realized high ADU construction with minimum education and outreach to the community. The Town plans to greatly expand community outreach to realize additional ADU development. Specifically, the Town will distribute, at least annually, community outreach mailing and social media posts, host at least one community workshop on new ADU development standards and provide information on the Town’s website and at the Town counters on the ease of ADU development. With the Town’s current pace of ADU applications, the Town forecasts the development of 280 new ADUs over the next planning period. With additional outreach and other incentives and changes to the zoning code, the Town plans to meet or exceed this current pace of production over the next eight years. The Town expects that these units will be divided between very low- (30%), low- (30%), moderate- (30%) and above moderate- (10%) income categories based on the ABAG/UC Berkeley Affordability Study.

In addition, the Town intends to take the steps listed below to facilitate new ADU construction and rental to lower income households, additional ADU ATTACHMENT 1
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creation, construction and conversion, as well as remove any potential constrants:

A. Adopt a program for pre-approval of ADUs plans to streamline the review and approval process and reduce the cost to prepare detailed plans by December 31, 2023.

B. AConsider amending the zoning code to allow ADUs to be constructed above detached garages which are numerous around Town by increasing the allowable height of such structures to be 18 feet, thus allowing a second story ADU to be constructed. by end .Amend the zoning code by July 1, 2023.

C. AConsider amending the zoning code to allow two ADUs to be constructed on a property. The first ADU constructed is exempt from floor area limitations and the second ADU will be included within ADU floor area calculations. This will facilitate the construction of additional ADU units. Amend the zoning code by July 1, 2023.

D. Many Atherton properties include pool houses and guest houses in addition to ADUs. These buildings are limited to 30-day occupancy per year. To facilitate additional rental of ADUs the Town will amend the zoning code to eliminate this provision and allow pool houses and guest houses to be rented as ADUs. The Town will distribute a town wide mailer informing property owners of this change and encouraging rental of their units. This will substantially increase the inventory of available rental units in the Town. Amend the cod by July 1, 2023.

E. At the time of construction or conversion, the Town requests the owner fill out an ADU rental survey indicating the amount of rent to be charged for the unit. By comparing this rent to the San Mateo County monthly maximum affordable housing cost by household chart, the affordability level of each unit is determined. This is an ongoing program.

F. A Town wide mailer will be completed to create an inventory of existing pool houses and guest houses. Using this inventory, the Town shallwould work with a non-profit housing organization such as but not limited to HIP Housing (HIP) to connect homeowners to prospective renters.

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The mailer will be distributed by December 31, 2023 and at least annually thereafter to advertise the program.the
G. To encourage rental of ADUs and JADUs, the Town will develop a comprehensive incentive ADU/JADU rental program and partner with a non-profit housing organization, such as, but not limited to (HIP Housing) to facilitate the rental advertising, screening and partnering process by December 31, 2023..

H. Adopt aConsider a Planning fee waiver for all new ADUs to incentivize new construction by July 1, 2023.

I. Prepare a nexus study and aAdopt an affordable housing impact fee on single family construction. The Town will make available funds from this program to provide very low-income rental assistance for eligible households identified by HIP by July 1, 2024.

I.J. Establish a monitoring program of ADU applications and approvals within two years of Housing Element adoption to ensure actual production is on pace with projections, to identify progress and make appropriate program adjustments. The town will monitor ADU applications and approvals., the Town will
Time frame for implementation: Ongoing (ShortLong-term Action) Agency/Official responsible for implementation: Town Planner Proposed Measurable Outcomes: Complete related ADU Ordinance and other municipalmunicipae code updates by July 1, 2023. Realize 252 new accessory dwelling units in the very low-, low- and moderate-income categories and 28 new accessory dwelling units in the above moderateincome category in the 2023 -2031 planning period.

Funding Sources: General Fund, Planning Department Budget, affordable housing in-lieu fees

3.813 Multifamily Housing Development on School and other Properties Menlo College is a private 4-year college located at 1000 El Camino Real sited on 31 acres of property (including 50% ownership of Cartan Athletic Field and Wunderlich Athletic Field) serving approximately 750 students.

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Menlo School is a private grade 6 - 12 school located at 50 Valparaiso Avenue sited on 26.7 acres of property (including 50% ownership of Cartan Athletic Field and Wunderlich Athletic Field) serving approximately 795 students.

Sacred Heart Schools is a private preschool, K - 12 institution located at 150 Valparaiso Avenue on 60 acres for property serving approximately 1,195 students.

Menlo-Atherton High School is a public four-year secondary school in the Sequoia Union High School District serving approximately 2,400 students.

The school and its athletic fields occupy 38.5 acres at 555 Middlefield Road at the corner of Middlefield and Ringwood Avenue.

Laurel School is a public elementary school in the Menlo Park City School District. Its Lower Campus is on 6 acres at 95 Edge Road in Atherton at the corner of Edge and Ringwood Avenue. The Lower Campus serves approximately 326 students in grades K-2.

Encinal School is a public K-5 elementary school in the Menlo Park City School District serving approximately 630 students. It is located on 10 acres at 195 Encinal Avenue at the corner of Encinal and Middlefield Road.

Las Lomitas School is a public TK-3 elementary school in the Las Lomitas Elementary School District serving approximately 485 students. It is located on 9 acres at 299 Alameda de las Pulgas at the corner of Alameda de las Pulgas and Camino Al Lago.

Adelante Selby Spanish Immersion School is a public K-5 elementary school in the Redwood City School District serving approximately 652 students. The portion of the campus within Atherton is located on 5.5 acres at 170 Selby Lane.

A. Public and Private Schools: Public and private school properties are zoned PFS (Public Facilities and Schools) District in Atherton. The PFS District currently allows multiple-family residential uses that could accommodate housing for very low- and low-income households associated with primary nonresidential use of property on the same site. No maximum density is specified in the PFS District for the multiple-family residential uses allowed in the zoning district and the Town does not have parking standards. The only multiple-family development regulations are setbacks, 34 feet height limit and 40% lot coverage. As outlined below, there is more than adequate land available on the school sites to develop new housing.

Atherton Planning Staff has had discussions with representatives of the three private schools and the public school in Town about the ATTACHMENT 1
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development of low- and moderate-income housing on their campuses.

Those discussions include:
● Menlo College currently has 25 housing units for faculty and staff. Most of those housing units are rented at rates affordable to low- and moderateincome households. In recent discussions between the College President and Atherton Planning Staff, the President indicated that the College is very interested in providing additional housing on campus. He stated that there is always a demand for additional housing, that the existing units are almost always 100% occupied, and that shortage of affordable housing is a barrier to hiring. However, funding has been a barrier to housing production in the past. The letter indicates that the College could support 18 to 40 additional faculty housing units. Letter from the College President is included as an appendix.

Through its Master Plan, the College is exploring several concepts for faculty and staff housing on the campus including:
● Construction of new library and dining hall buildings (separate buildings) with podium parking at ground level, 1 or 2 levels for the library and dining hall, and 1 or 2 stories of housing above (maximum 3 stories over parking). The majority of the housing units would be set-aside for low- and moderate-income faculty and staff households.
● Construction of a multi-family housing project on the site of the O’Brian Parking Lot at the corner of El Camino Real and Alejandra Avenue. The building could have podium parking at ground level and 3 stories of housing above. Most of the housing units would be set-aside for low- and moderate-income faculty and staff households.
● Construction of a new classroom building on the site of the existing Florence Moore Building with podium parking at ground level and 2 stories of classrooms above and one story of housing on top. Most of the housing units would be set-aside for low- and moderateincome faculty and staff households. ● Convert student dorm housing to new apartments for faculty. This is anticipated to result in 3-5 new housing units.
● Menlo School – the school has acquired an apartment building locally for faculty housing. The cost of housing and impact on faculty is discussed annually by the school and its Board. Its faculty prefers to live close to campus as opposed to on campus housing. The school expressed its interest in acquiring land adjacent to the school and developing 10-20 ATTACHMENT 1
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units within this housing element cycle. If the school acquires additional property and makes an application for a zoning change from single-family zoning to PFS, the Town would consider adding the property to the PFS zone to allow new multiple-family housing.

● Sacred Heart – there are currently five apartment units on the campus and housing for retired Nuns at Oakwood. The school anticipates this facility being renovated in the future (15-20 years) to accommodate faculty rental housing units. It is not anticipated that the school will develop new housing units during this housing element cycle.

Given the large size of the school campuses and the minimal development regulations, there is more than adequate land available at each campus to accommodate new multiple family housing.

To facilitate development of affordable housing on single family zoned properties adjacent to school sites, upon acquisition of property by a school, if the school makes application for a zoning change, the Town will consider rezoning the property to PFS to accommodate affordable housing consistent with existing PFS Zoning opportunities.

B. New Housing at Bear Gulch Reservoir Property: CalWater owns and operates 99 acres at the Bear Gulch Reservoir in Atherton. The property is located within the Town’s Park and Open Space (POS) zoning district. This zoning district currently allows caretaker housing with a Conditional Use Permit.

There are several housing units at the CalWater site that are occupied by employees. Due to the high cost of housing and new employee recruitment, CalWater expressed interest in constructing four new affordable housing units at this site.

To facilitate further development of housing at the Bear Gulch property, the Town will amend the POS zone to allow low and moderate-income multifamily housing by right.

Time frame for implementation: Ongoing (Long-term Action), rezoning and/or zoning amendments to occur simultaneously with Housing Element adoption.

Agency/Official responsible for implementation: Planning Department and Building Department
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Proposed Measurable Outcomes: Construction of 50 new affordable faculty dwelling units at private and public schools in the extremely low- to moderate-income category and 4 work-force housing units at the CalWater Bear Gulch site during the 2023-2031 planning period.

3.814 Adoption of an Inclusionary Zoning Ordinance
A. Inclusionary Fee. Adopt a new inclusionary housing fee for all new single family housing construction and additions The Town will complete a nexus study and develop an inclusionary housing fee for single family development and additions. The fee will provide an option to provide affordable deed restricted ADU or JADU on-site in-lieu of paying the fee.

Funds generated by this fee will be used to support affordable housing in Atherton which may include an ADU rental program and supporting affordable housing development in the Town. The Town will develop a program on the use of funds.

A. Time frame for implementation: Within one year of Housing Element adoption the Town will establish the fee and a program for the use of funds.Concurrently with the Housing Element adoption
Agency/Official responsible for implementation: Planning Department and Finance Director
Proposed Measurable Outcomes: Support an affordable ADU rental program and other affordable housing.

Funding Sources: General Fund, Planning Department Budget

3.815 Conservation and Rehabilitation of Existing Units A. Continue to facilitate and expedite the rehabilitation and reconstruction of existing residential units. The prompt processing of subdivision, planning review and building permit issuance has resulted in average review times that are some of the most reasonable in San Mateo County. The Town will continue to assist the property owners and development community in the housing development, conservation and rehabilitation process. The Town will establish a building inspector ombudsman to assist property owners navigate the rehabilitation process.

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Agency/Official responsible for implementation: Planning and Building Departments
Proposed Measurable Outcomes: N/A
Funding Sources: General Fund, Planning and Building Department Budgets

3.820 Special Housing Needs

3.821 Seniors
A. Continue to facilitate the provision of board and care opportunities, particularly for seniors, some of whom may be longtime Atherton residents who can no longer remain in their homes and who wish to continue living in Atherton. State law provides that a residential care facility (defined as a facility serving six or fewer persons) is a residential use and must be permitted wherever residential uses are allowed.

B. The Town will continue to provide information at Town Hall regarding the numerous Senior Centers in San Mateo County that offer assistance in home repairs. Some of these programs offer subsidized services and others maintain a list of skilled workers who charge below market rates. The information also includes San Mateo County’s Home Repair Program to assist low and moderate homeowners in rehabilitating their residences. The Town will publicize the availability of these services on the Town website.

C. The Town will continue to support the County Property Tax Postponement Program, which provides seniors with a means of postponing property tax payment. This program has the benefit of extending the length of time they can remain in their homes. Inquiries will be directed to the County Tax Collector’s Office and information regarding the program will be available at Town Hall and publicized on the Town’s website.

C.D. The Town will host a Senior Workshop to educate the community on available resources. Information on home repair and retrofit for accessibility resources and programs, home sharing opportunity, financial assistance, and the ADU program will be presented.

Time frame for implementation: Conduct Senior Workshop within two years of Housing Element certification and annually thereafter. Outreach and education efforts are Oongoing (Long-term Action)
Agency/Official responsible for implementation: Planning Department Proposed Measurable Outcomes: educate seniors and assist in allowing them to remain in their homeN/A
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Funding Sources: General Fund, Planning Department Budget

3.822 Disabled and Developmentally Delayed Persons
A. Continue to review new residential developments and major remodels for compliance with the Americans with Disabilities Act (ADA).

B. Continue to support the County Housing Accessibility for Disabled Persons program at the Center for the Independence of the Disabled. The Town will direct inquiries for house modifications for the disabled to the County program. Public information regarding the program will be available at Town Hall and publicized on the Town’s website.

C. The Town will continue to process requests for housing accessibility accommodations. The Town’s municipal code provides a process for individuals with disabilities to make requests for reasonable accommodation for relief from the various land use, zoning, or rules, policies, practices, and/or procedures of the town that may be necessary to ensure equal access to housing.

C.D. Conduct annual outreach to the community through direct mailers and social media posting to inform the community on programs.

Time frame for implementation: conduct annual outreach to the community with the first mailer distributed two years from Housing Element certification and annually thereafter. All other actions are Oongoing (Long-term Action)
Agency/Official responsible for implementation: Building and Planning Department
Proposed Measurable Outcomes: N/A
Funding Sources: General Fund, Building Department Budget Funding Sources: General Fund, Planning Department Budget

3.823 Equal Housing Opportunity
A. Refer complaints of discrimination in housing access based on race, religion, national origin, age, sex, marital status or physical handicap, and other arbitrary barriers that prevent choice of housing to groups such as Project Sentinel. The Town will disseminate fair housing information at Town Formatted: Font: 12 pt, Font color: Custom
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Hall. In addition, fair housing information will be published on the Town website.

B. Develop and implement an education/outreach campaign targeting landlords/managers on renting to people with Housing Choice Vouchers.

C. Amend the Zoning title to eliminate the occupancy limitation on other accessory units, such as guest houses and pool houses and create an inventory of existing pool houses and guest houses. The Town will work with a nonprofit to connect homeowners to prospective renters.

D. Adopt an affordable housing impact fee on single family construction. The Town will make available funds from this program to provide very low-income rental assistance for eligible households identified by HIP.

E. Provide additional fair housing resources and training for property owners, real estate agents, and tenants in collaboration with other cities and towns, Project Sentinel, or another similar organization. Mandate training for multi-family developers, property owners and any resident renting an ADU or similar unit.

F. Create a webpage to host this information and improve awareness around fair housing training, issues and available programs. The webpage will also provide information on filing fair housing complaints with HCD or HUD.

G. Affirmatively market low-income units to households that are underrepresented in the Town in comparison to neighboring jurisdictions.

H.

Time frame for implementation: Concurrent with 2023 – 2031 Housing Element adoption
Agency/Official responsible for implementation: Planning Department Proposed Measurable Outcomes: N/A
Funding Sources: General Fund, Planning Department Budget

3.824 Emergency Shelters, Transitional and Supportive Housing A. Continue to support the possibility of Emergency Shelters, Transitional Housing, and Supportive Housing in Atherton. Emergency shelters are a permitted use on the Town Civic Center Property.

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Timeframe for implementation: Ongoing
Agency/Official responsible for implementation: Planning Department Funding Sources: N/A

3.830 Consistency with State Requirements

3.831 Energy Conservation
A. Continue to require compliance with Title 24 of the State’s Building regulations. In addition, disseminate energy conservation information available from other agencies, such as PG&E’s solar subsidy program and energy audits.

B. Continue to support Green Building in Atherton through enforcing the Green Building Ordinance.

C. Continue to promote energy conservation through energy audits, participation in PG&E and Cal Water programs and encouraging energy conserving retrofits in homes.

Time frame for implementation: Ongoing (Long-term Action) Agency/Official responsible for implementation: Building Department Proposed Measurable Outcomes: N/A
Funding Sources: General Fund, Building Department Budget

3.840 Other Housing Programs

3.841 Shared Housing
A. The Town will continue to support the Human Investment Program (HIP), a non-profit organization that matches people needing housing and people owning a home who desire additional income and/or companionship. The Town will make information about the Home Sharing program available at Town Hall and will publicize the effort on the Town’s website. The Town will mail (Home sharing does not count toward the Town’s Housing Needs Allocation.)
Time frame for implementation: Conduct community outreach by December 31, 2023 and annually thereafter.

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Agency/Official responsible for implementation: Planning Department Proposed Measurable Outcomes: 1-2 home share matches each year.

Funding sources: general fund
A.

3.842 Housing Compliance and Monitoring
A. The Town will partnerconsider partnering with the County or other jurisdictions to share housing staff or hireing a third party to manage the Town’s affordable housing portfolio. This will be an important task in helping Atherton lay the groundwork for an effective affordable housing compliance and monitoring process,
Time frame for implementation: Within one year of Housing Element adoption and ongoing thereafterOngoing (Long-term Action) Agency/Official responsible for implementation: Planning Department Proposed Measurable Outcomes: 1 - 2 home-share matches each year, Rental of ADUs and production of multi-family housing as identified in the Housing Element
Funding Sources: General Fund, Planning Department Budget

3.843 Previously Identified Housing Sites
A. The Town will rezone any sites reused from a prior housing element within three years or one year of the beginning of the planning period to allow residential use by- right for housing developments in which at least 20 percent of the units are affordable to lower-income households, and no subdivision is required. (Gov. Code, § 65583.2, subd. (c).) Time frame for implementation: complete rezoning within one year of Housing Element certification.

Agency/Official responsible for implementation: Planning Division Proposed Measurable Outcomes: realize the development of new housing units
Funding Sources: General fund

3.844 Water and Sewer Providers - Priority for Affordable Housing Formatted: Indent: Left: 1", No bullets or numbering
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A. Water and sewer service providers must establish specific procedures to grant priority water and sewer service to developments with units affordable to lower-income households. (Gov. Code, § 65589.7.) The Town will immediately deliver the housing element to water and sewer service providers upon adoption.

Time frame for implementation: upon adoption of Housing Element Agency/Official responsible for implementation: Planning Division Proposed Measurable Outcomes: notify water and sewer providers Funding Sources: General fund

3.845 Accessory Dwelling Units Monitoring
A. The Town will monitor permitted ADUs and affordability every other year and take appropriate action, including adjusting assumptions or rezoning within one year if the sites inventory is negatively impacted to ensure compliance with no net loss provisions.

Time frame for implementation: ongoing, starting one year after Housing Element adoption
Agency/Official responsible for implementation: Planning Division Proposed Measurable Outcomes: realize development of 280 new housing units
Funding Sources: General fund

3.846 By-Right Permanent Supportive Housing
A. The Town will revise the zoning code to allow Permanent Supportive Housing Supportive Housing to be a by-right use in zones where multifamily and mixed-uses are permitted, including nonresidential zones permitting multifamily uses pursuant to Government Code section 65651. To be consistent with AB 2162, the Town will allow by-right 100% affordable housing that has 25% or 12 units of permanent supportive housing, where multifamily or mixed-use housing is permitted.

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Time frame for implementation: revise Zoning code within one year of Housing Element certification
Agency/Official responsible for implementation: Planning Division Proposed Measurable Outcomes: consistency with State law Funding Sources: general fund

3.847 By-Right Low-Barrier Navigation Centers
A. The Town will revise the zoning code to allow Low Barrier Navigation Centers to be a use by-right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses pursuant to Government Code section 65660.

Time frame for implementation: revise Zoning Code within one year of Housing Element certification
Agency/Official responsible for implementation: Planning Division Proposed Measurable Outcomes: consistency with state law Funding Sources: general fund

3.848 Approval of Mobile Homes and Manufactured Housing A. The Town will revise the zoning code to ensure mobile homes and manufactured housing on a permanent foundation are approved in the same manner as single-family homes.

Time frame for implementation: revise Zoning Code within one year of Housing Element certification
Agency/Official responsible for implementation: Planning Division Proposed Measurable Outcomes: consistency with state law Funding Sources: general fund

3.849 Zoning, Fees and Other Development Standards Transparency ATTACHMENT 1
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A. The Town will ensure that all fees, zoning requirements and development standards are posted on the Town’s website, updating regularly, pursuant to Government Code section 65940.1(a)(1).

Time frame for implementation: ongoing
Agency/Official responsible for implementation: Planning Division and Finance Director
Proposed Measurable Outcomes: inform residents and developers Funding Sources: general fund

3.850 Group Homes for Persons with Disabilities
A. The Town will revise the zoning code to allow group homes for seven or more residents, specifically for people with disabilities, as a permitted use in any district where residential uses are permitted.

Time frame for implementation: Revise Zoning Code one year from Housing Element certification
Agency/Official responsible for implementation: Planning Division Proposed Measurable Outcomes: consistency with state law Funding Sources: general fund

3.851 Replacement Housing Requirements
A. The Town will require replacement housing for lower-income units (Gov. Code, § 65583.2, subd. (g)(3).) with the same requirements as set forth in Government Code section 65915, subdivision (c), paragraph (3).

Time frame for implementation: ongoing
Agency/Official responsible for implementation: Planning Division Proposed Measurable Outcomes: consistency with state law Funding Sources: general fund

3.852 Employee Housing
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A. The Town will amend its zoning code to allow for employee housing as provided for under the Employee Housing Act. Specifically, consistent with Section 17021.5, employee housing for six or fewer employees will be treated as a single-family structure and permitted in the same manner as other dwellings of the same type in the same zone. In addition, the code will be revised consistent with Section 17021.6, which requires that employee housing consisting of no more than 12 units or 36 beds to be permitted in the same manner as other agricultural uses in the same zone.

Time frame for implementation: Amend zoning code within one year of Housing Element certification
Agency/Official responsible for implementation: Planning Division Proposed Measurable Outcomes: consistency with state law Funding Sources: general fund

3.853 Emergency Shelters
A. The Town will amend its zoning code to comply with all provisions of State law pertaining to emergency shelters. Specifically, the Town will permit shelters without discretionary action. In addition, the Town will analyze all development standards and address any constraints on spacing and shelter size. Further, the Town will amend its code to ensure compliance with parking requirements of AB139/Government Code section 65583, subdivision (a)(4)(A).

Time frame for implementation: Amend zoning code within one year of Housing Element certification
Agency/Official responsible for implementation: Planning Division Proposed Measurable Outcomes: consistency with state law Funding Sources: general fund
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3.900 EFFORTS TO ACHIEVE COMMUNITY ENGAGEMENT
Extensive public engagement is an essential component to the housing element update process. During this Planning Period, Atherton held several public meetings to discuss the proposed strategies with the community. The Town also partnered with 21 Elements and the Let’s Talk Housing effort to engage with current and potential beneficiaries of housing programs and services and their advocates (e.g., lower income representatives, tenants of affordable complexes, groups targeted for special housing needs consideration, community-based organizations, health and human service providers, homeless shelter and service providers) in the update process. The participation of development professionals including local buildings, for and nonprofit developers, architects, trade labor unions, realtors, mortgage bankers and brokers, areas lenders and others have been invited to participate.

The Town also created a Housing Element webpage to advertise meetings, post resources, the Draft Housing Element and a portal to provide public comments.

The community outreach effort coordinated with 21 Elements included virtual community meetings and webinars on the following topics: Introduction to the Housing Element, All About RHNA Webinar, Stakeholder Listening Sessions and Creating an Affordable Future webinars (four-part series).

In addition to the 21 Elements coordinated outreach efforts, the Town held several public meetings to discuss Housing Element programs, policies and strategies as follows:
● City Council meeting on November 4, 2020 to discuss the RHNA allocation process. ● A Joint meeting with the Planning Commission and City Council was held on April 28, 2021 to discuss key strategies to meet the RHNA obligation. ● City Council meeting held on January 12, 2022 to refine the housing element strategies.
● City Council meeting on February 24, 2022 to discuss the housing element strategies.
● City Council meeting on March 16, 2022 to discuss the housing element strategies. ● City Council meeting on May 18, 2022 to review comments from the community outreach meeting and further discuss the housing element strategies. ● Special City Council meeting on May 24, 2022 to provide further direction on the housing element strategies.

The Town held a public engagement/discussion meeting in the evening on April 26, 2022.

A special edition of the Town newsletter was prepared and physically mailed to every ATTACHMENT 1
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address in Town describing the proposed Housing Element programs and announcing the community meeting. The event was also promoted through the Town’s email newsletter list, Town website and posted at the Town’s Civic Center. Approximately 60 community members attended. An open discussion/engagement format was used rather than the typical presentation/public hearing and response format. Community leaders (City Council members and others) mixed with community members to discuss a wide variety of housing issues. Some engagement issues included:
● Education on the magnitude of the challenge facing the Town, the need for collaborative solutions, and the impact of non-compliance. ● Issues relating to a proposed multifamily overlay zone, proposed locations and details about the zoning district.
● Some community members truly want to solve the housing problem by adding or registering their ADU or JADU.
● Other community members were interested in being a part of the proposed multifamily overlay zone.
● Questions were raised about how the multifamily overlay zone works for numbers of units produced.
● Better definition of how a density bonus works.
● There were concerns raised about aesthetics and design, however that was not a primary issue for most.
● There was a lingering issue about diminished property values; single-family home adjacent to multifamily complex.

The meeting eventually transitioned to a question-and-answer format, which was helpful, but only after an extensive engagement format which provided an opportunity for education and discussion.

Key lessons from the meeting were that senior housing is an important topic for residents.

Many residents feel passionately that they want to continue to live in Atherton as they age. Some are worried that their current houses do not meet their needs and are looking for options to stay.

The Draft Housing Element was published on the Town’s website for a 30-day public review and comment period on June 10, 2022. Notice of the availability of the document was provided via email to Housing Advocates, published in the Almanac Newspaper and announced to residents via the Town’s e-notify system and social media outlets. The City Council, at its June 15, 2022 regular meeting discussed comments they have received individually and provided an opportunity for the public to provide comments.

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on June 23, 2022 to receive comments from Commissioners and the public. The Town received over 300 written comments on the Draft Housing Element in addition to verbal comments provided at the meetings listed above.

At the July 20, 2022 City Council meeting, the Council discussed public comments received on the Draft Housing Element and directed staff to revise the Draft Housing Element to incorporate public feedback. Specifically, with respect to the overwhelming public comments in opposition of the multi-family overlay concept, the Council directed this program be removed from the Element. Council also requested revisions to several housing programs as suggested by the Housing Leadership Council, including expanding the Accessory Dwelling Unit program.

The City Council, at its July 27, 2022 Special meeting reviewed the revised Draft Housing Element and authorized transmission to HCD for its preliminary review and comments.

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APPENDICES

1. 21 Elements Resident Survey Analysis, 4/14/2022

2. ABAG/MTC Housing Needs Data Report - Atherton

3. AFFH Atherton Map and Data Packet

4. San Mateo County-wide Housing Needs Final Report, 11/3/2021

5. Electronic Housing Element Site Inventory Form

6. Menlo College Faculty and Staff Housing Considerations ATTACHMENT 1
Comment Council Decision‐
Making Required?
Level of
Difficulty in
Response
Recommended Action Who Status
AA thorough program‐by‐program review is necessary to evaluate Town's performance in addressing housing goals. While the element describes actual results of the priorelement’s programs, it must provide a description of how the objectives and programs of the updated element incorporate changes resulting from the evaluation.

No Low Review and revise narrative Town in progress
As part of the review of programs in the past cycle, the element must analyze theeffectiveness of goals, policies, and related actions in meeting the housing needs ofspecial needs populations (e.g., elderly, persons with disabilities, large households, female headed households, farmworkers and persons experiencing homelessness).Programs should be revised as appropriate to reflect the results of this evaluation No Low Review and revise narrative Town in progress
B.1 Fair Housing Enforcement and Capacity: While the housing element includes a summary of fair housing enforcement and outreach capacity, it should describe any fair housing lawsuits and related enforcement actions. In addition, this section shouldaddress how outreach will occur throughout planning period.

No Low Root Policy is assisting in a response. Include
comment that there we no fair housing lawsuits
and related enforcement. Fair housinginformation will be available on town’s website.

RP response included in section

3.330
Local Data and Knowledge: The element must include local data, knowledge, and other relevant factors to discuss and analyze any unique attributes about the Town related to fair housing issues. The element should complement federal, state, and regional data with local data and knowledge where appropriate to capture emerging trends and issues, including utilizing knowledge from local and regional advocates and service providers, Town staff and related local and county planning documents and should No Medium Root Policy is assisting in a response. Need to provide explanation how the Town developed
over time.

Town response included in section

3.330
Integration and Segregation: The element provided some data regarding segregation and integration, but it should also describe concentrations of race both locally and regionally (i.e., geographically within the Town, as well as comparing the Town to the region). In addition, the element must discuss and analyze data on persons with disabilities regionally and over time. The element must describe and analyze concentrations of familial status both locally and regionally. Lastly, the element must No Low Root Policy is assisting in a response. RP response included in section

3.340
Racial/Ethnic Areas of Concentration of Poverty (R/ECAP) and Affluence (RCAA): The element must also address concentrated areas of affluence both locally and regionally.

The analysis should evaluate the patterns and changes over time at a local (e.g.,neighborhood to neighborhood) and regional level (e.g., Town to region) and include programs as appropriate (not limited to the regional housing need allocation (RHNA)).

No Low Root Policy is assisting in a response. RP response included in section

3.350
Disparities in Access to Opportunity: While the element included some data, it should discuss what contributes to the lower education score in the Town west of El Camino Real. In addition, the element must analyze the disparities in access to jobs byprotected classes and analyze what contributes to the varied access to jobs within the Town. The element must also provide a regional analysis for access to opportunity for employment and environment. Lastly, while the element describes a 2018 transit No Low Root Policy is assisting in a response. RP response included in section

3.360
ATTACHMENT 2
Disproportionate Housing Needs, Including Displacement Risk: While the element includes some discussion on disproportionate housing needs, this discussion should also address the patterns within the Town and evaluate any similarities with other components of the assessment of fair housing. In addition, the analysis should include both local and regional discussions of cost burden by tenure. In addition, the element must include a regional analysis for overcrowding and substandard housing. Theelement should also analyze any demographic data available for persons experiencinghomelessness. The analysis on displacement risk should be expanded beyond units at‐ risk of losing subsidy and also describe the high risk of residents experiencing No Medium Root Policy is assisting in a response. RP response included in section

3.360
Affirmatively Furthering Fair Housing (AFFH) and Sites Inventory: While the element includes a summary of fair housing related to the sites inventory, it must analyze how the identified sites contribute to or mitigate fair housing issues. An analysis should address all of the income categories of identified sites with respect to location, the number of units by all income groups and how that affects the existing patterns for all components of the assessment of fair housing (e.g., segregation and integration,access to opportunity). This analysis should specifically address whether the ADU strategy to accommodate lower‐income households contributes to continued exclusion and disparities in access to opportunity. If sites exacerbate conditions orisolates the RHNA by income group, the element should identify further program Yes Medium Root Policy is assisting in a response. May require revisiting ADU as a strategy to meet lowerincome needs.

RP will revise when multifamily
sites are identified
Contributing Factors to Fair Housing Issues: Based on the outcomes of a complete analysis, the element should re‐assess contributing factors and particularly prioritize those factors then formulate appropriate policies and programs. Currently the element only includes one contributing factor. The element should address potential contributing factors such as barriers like exclusionary zoning or a lack of state and No Low Root Policy is assisting in a response. Town
Goals and Actions: The element must be revised to add or modify goals and actions based on the outcomes of a complete analysis. Goals and actions must specifically respond to the analysis and identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identifiedpatterns and trends. Actions must have specific commitment, discrete timing ormilestones, geographic targeting and metrics or numerical targets. As appropriate, actions must address housing mobility, new housing choices and affordability in higher Yes Medium Root Policy is assisting in a response. Town 2 Extremely Low‐Income (ELI) Households: The element must quantify the number of existing and projected ELI households, and also analyze their housing needs. The analysis of ELI housing needs should also evaluate ELI households by tenure.

No Low Research additional data and revise narrative. Town (may already be in ther needspacket ‐‐ this is a
boilerplate item all
jx received)
3 Overpayment: The element must quantify and analyze overpayment by tenure (i.e., renter and owner), for both the overall population and lower‐income households.

No Low Research additional data and revise narrative. Town (may already be in ther needspacket ‐‐ this is a
boilerplate item alljx received)
cost burden response includedin section 3.360
ATTACHMENT 2
Housing Conditions: The element includes the number of substandard housing units from Census data. However, the element must include an estimate of the number ofunits in need of rehabilitation and replacement. For example, the analysis couldinclude estimates from a recent windshield survey or sampling, estimates from the code enforcement agency, or information from knowledgeable builders/developers, No Medium Research additional data and revise narrative. Town researching ‐ will update Housing Costs: While the element includes estimated rents for residents, it utilizes American Community Survey (ACS) data. The element should supplement census data No Low Research additional data and revise narrative. Town researching ‐ will update 4 Sites Inventory: While the sites inventory includes many requirements, it must include the general plan designation. Additionally, there are some discrepancies between cited sites and the inventory. For example, two of the school sites do not list any units in the inventory and the numbers in the inventory do not match what is stated in the analysis. Additional sites will likely need to be identified to accommodate the RHNA.

No Low Review inventory for consistency and revise as
needed.

Town will revise based on Council
direction on sites
Realistic Capacity: The element must provide assumptions for the calculation of residential capacity on identified sites included in the inventory and must also provide support for these assumptions. For example, the element should demonstrate whatspecific trends, factors, and other evidence led to the assumptions. The estimate of the number of units for each site must be adjusted as necessary, based on the land use controls and site improvements, typical densities of existing or approved residential developments at a similar affordability level in that jurisdiction, and on the current or Yes High Develop additional data to support justification of realistic capacity. Changes may result in a
reduced inventory requiring additionalsites/actions.

Town will revise based on Council
direction on sites
Small and Large Sites: Sites smaller than a half‐acre and larger than ten acres in size are deemed inadequate to accommodate housing for lower‐income housing unless it is demonstrated that sites of equivalent size and affordability were successfully developed during the prior planning period or unless the housing element describes other evidence to HCD that the site is adequate to accommodate lower‐income housing (Gov. Code, § 65583.2, subd. (c)(2)(A).). The element lists small and large sites but also should evaluate whether those sites are suitable to accommodate housing forlower‐income households and add or modify programs as appropriate. For example, the element could list past consolidations by the number of parcels, number ofowners, zone, number of units, affordability and circumstances leading to Yes High Develop additional analyses that determine
adequacy of sites for lower‐income housing.Changes may result in a reduced inventoryrequiring additional sites/actions.

Town will revise based on Council
direction on sites
Suitability of Nonvacant Sites: While the element includes a description of the identified sites, it must include an analysis demonstrating the potential for additional development on nonvacant sites. Specifically additional details on the school sites and Cal Water site. The description of existing uses should be sufficiently detailed tofacilitate an analysis demonstrating the potential for additional development in the planning period. In addition, the element should analyze the extent that existing uses may impede additional residential development. For example, the element includes sites identified as a private college, a school site, and a reservoir site, but little analysis was provided to demonstrate whether these existing uses would impede development of these sites within the planning period. The element can summarize past experiences converting existing uses to higher density residential development, include current market demand for the existing use, provide analysis of existing leases or contracts that would perpetuate the existing use or prevent additional residential developmentand include current information on development trends and market conditions in the Town and relate those trends to the sites identified. The element could also consider Yes High Develop additional analyses that determine
adequacy of nonvacant sites for redevelopment.Changes may result in a reduced inventoryrequiring additional sites/actions.

Town will revise based on Council
direction on sites
ATTACHMENT 2
Zoning for Lower‐Income Households: The element must demonstrate zoning appropriate to accommodate housing for lower‐income households. For sites with zoning meeting specified densities or default densities (20 units per acre in Atherton), no analysis is required. Otherwise, the element must include analysis based on statutory factors, including but not limited to financial feasibility and experience within Yes High Analyze existing areas for multifamily housing, determine capacity, and add additional sites asmultifamily as needed. Add a program to commit to zoning density at least 20 du/ac on sites to
demonstrate capacity for lower‐income housing.

Town will revise based on Council
direction on sites
SB
9 Sites: The element identifies SB
9 as a strategy to accommodate the part of the
Town’s RHNA. To support these assumptions, the analysis must include experience,trends and market conditions that allow lot splits and missing middle uses. The analysis must list the potential SB
9 sites and demonstrate the likelihood of redevelopment, including whether existing uses constitute as an impediment for additional residential use. The analysis should describe how the Town determined eligible properties,whether the assumed lots will have turnover, if the properties are easy to subdivide, and the condition of the existing structures. The analysis should also describe interest from property owners as well as experience. The analysis should provide support for the units being developed within the planning period. Based on the outcomes of this analysis, the element should add or modify to establish zoning and developmentstandards early in the planning period and implement incentives to encourage and facilitate development as well as monitor development every two years with and Yes High Identify individual sites where SB
9 could be used,
providing a detailed analysis of the likelihood of
redevelopment as lot splits or additionaldevelopment. Add a program to establish zoning and development standards within the first threeyears of the planning period. Include incentives toencourage development. Include a monitoringprogram that reevaluates whether SB 9 projects
are occuring at the rate the Town estimated, andadd a program to identify additional sites within six months if assumptions are not met.

Town will revise after additional
outreach to property
owners/developers
Publicly Owned Sites: The element identifies multiple publicly‐owned sites including the Public Facilities and Schools District, the Menlo School, and Cal Water Bear Gulch Reservoir sites. The element must include additional discussion on each of the publicly‐ owned sites identified to accommodate the RHNA. Specifically, the analysis should address general plan designations, allowable densities, support for residential capacityassumptions, existing uses and any known conditions that preclude development in the planning period and the potential schedule for development. If zoning does not currently allow residential uses at appropriate densities, then the element must include programs to rezone sites pursuant to Government Code section 65583.2, subdivisions (h) and (i). In addition, the housing element, where appropriate, must include a description of whether there are any plans to sell the property during the Yes High Provide a detailed analysis to demonstrate
publicly‐owned sites will be redeveloped withinthe
8 years. Include a program to rezone sites to
meet minium density requirements, and remove
barriers to development such as CUPs.

N/A will revise based on Council
direction on sites
Previously Identified Nonvacant and Vacant Sites: If nonvacant sites identified in a prior adopted housing element or vacant sites identified in two or more consecutiveplanning periods, the sites are inadequate to accommodate housing for lower‐income households unless:∙
The site’s current zoning is appropriate for the development of housing Yes Medium Add a program to rezone any sites reused from a prior Housing Element to be by‐right at 20units/acre if 20% of the units in a proposed development will be for affordable housing. The
rezoning must be completed within 3 years.

DE wording added in section

3.843
 The site is subject to a housing element program that requires rezoning within three years of the beginning of the planning period to allow residential use by‐ rightfor housing developments in which at least 20 percent of the units are affordable to included timeline for allrezoning to occur within one
year of Housing Element
Infrastructure: The element must demonstrate sufficient existing or planned water, sewer, and other dry utilities supply capacity, including the availability and access to distribution facilities, to accommodate the RHNA.

No Low Review and revise the narrative. Town researching ‐ will update For your information, water and sewer service providers must establish specific procedures to grant priority water and sewer service to developments with unitsaffordable to lower‐income households. (Gov. Code, § 65589.7.) Local governments are required to immediately deliver the housing element to water and sewer service No Low Add a program to ensure immediate delivery of
the Housing Element to providers.

DE added section 3.844
ATTACHMENT 2
Electronic Sites Inventory: Pursuant to Government Code section 65583.3, subdivision (b), upon adoption of the housing element, the Town must submit an electronic version of the sites inventory with its adopted housing element [email protected]. HCD has not received a copy of the electronic inventory.Please note, the Town must utilize standards, forms, and definitions adopted by HCD when preparing the sites inventory. Please see HCD’s housing element webpage at https://www.hcd.ca.gov/community‐development/housing‐
No Low Prepare the electronic version of the inventory
and resubmit to HCD.

Town will revise based on Council
direction on sites
Accessory Dwelling Units (ADUs): The element projects approximately 35 ADUs per year over the eight‐year planning period. This trend is inconsistent with HCD records of 19 ADUs per year. To support assumptions for ADUs in the planning period, the element should reduce the number of ADUs assumed per year and reconcile trends with HCD records, including additional information such as more recent permitted units and inquiries, resources and incentives, other relevant factors and modify policies and programs as appropriate. Further, programs should commit to additional incentives and strategies, frequent monitoring (every other year) and specificcommitment to adopt alternative measures such as rezoning or amending the element Yes Medium Reduce the number of projected ADUs to a
number supported by documentation. Review2022 data to determine if a number above 19ADUs on average can be justified. Provide research to demonstrate affordability trends
(Craigslist ads, etc.). Add a program to monitor
ADU development every two years to confirm
trends, and adopt rezoning or other measures if
ADU trends to not support conclusions.

TownDE ‐ program
revised ADU program
description and timelines forimplementation. Addedmonitoring program in section

3.845
Zoning for a Variety of Housing Types:

Emergency Shelters : The element should clarify shelters are permitted withoutdiscretionary action and discuss available sites, acreage, including typical parcel sizes and the presence of reuse opportunities, proximity to transportation and services and any conditions inappropriate for human habitability. The analysis should also list andevaluate all development standards and address the constraints on spacing and sheltersize with a program. Finally, the element should analyze whether parking requirementscomply with AB139/Government Code section 65583, subdivision (a)(4)(A) or include a No Medium Review current shelter standards to ensure
compliance with State law, providing greater
analysis of appropriateness of standards,including parking. Add a program to address nonconformance with State law.

TownDE ‐ program
added section 3.853
Housing for Employees: The Employee Housing Act permits housing under specific provisions. Section 17021.5 requires employee housing for six or fewer employees to be treated as a single‐family structure and permitted in the same manner as other dwellings of the same type in the same zone. Section 17021.6 requires employeehousing consisting of no more than 12 units or 36 beds to be permitted in the same manner as other agricultural uses in the same zone. The element must demonstrate No Medium Review current law for employee housing to
ensure compliance. Add a program to revise
zoning code to explicitly comply with Employee
Housing Act provisions.

TownDE ‐ program
added section 3.852
By‐Right Permanent Supportive Housing : Supportive housing shall be a use by‐ right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses pursuant to Government Code section 65651. The element must demonstrate compliance with these requirements and include programs as No Medium Add a program to allow permanent supportive
housing by‐right in the zoning code.

TownDE ‐ program
added section 3.846
Low Barrier Navigation Centers: Low Barrier Navigation Centers shall be a use by‐rightin zones where multifamily and mixed uses are permitted, including nonresidentialzones permitting multifamily uses pursuant to Government Code section 65660. The element must demonstrate compliance with this requirement and include programs as No Medium Add a program to allowlow barrier navigation
centers by‐right in the zoning code.

TownDE ‐ program
added section 3.847
Mobile Homes : The element must clarify whether mobile homes on a permanent foundation in the PFS zone are approved in the same way as sin gle-famil
y homes, if not a
pro
gram should be added as appro
priate.

DE‐ program added section 3.848
Multifamily Housing: The element states that multifamily housing is allowed only in PFS zone with a Conditional Use Permit (CUP) and master plan. The element must analyze and demonstrate realistic opportunities for multifamily and analyze the CUP requirement for multifamily as a potential constraint on housing supply and affordability. The analysis should identify findings of approval for the CUP and their potential impact on development approval certainty, timing, feasibility and cost. If Yes High Analyze existing areas for multifamily housing, determine capacity, and add additional sites asmultifamily as needed. Add a program to commit to zoning density at least 20 du/ac on sites todemonstrate capacity for lower‐income housing.

Town will revise based on Council
direction on sites
ATTACHMENT 2
Accessory Dwelling Units (ADUs): The element indicates the Town modified its zoning code to ease barriers to the development of ADU’s. However, after a cursory review of the Town’s ordinance, HCD discovered several areas which are not consistent withState ADU Law. HCD will provide a complete listing of ADU non‐compliance issuesunder a separate cover. As a result, the element should include a program to update the Town’s ADU ordinance to comply with state law. For more information, please consult HCD’s ADU Guidebook, published in December 2020, which provides detailed No Low Add a program to update the Town's ADU
ordinance on an ongoing basis with State law.

DE ‐ program revised ADU program
description and timelines forimplementation, includingprogram to update zoning ordinance, expanded
discussion of HIP program,and added monitoring
5 Land Use Controls: The element must identify and analyze all relevant land use controls impacts as potential constraints on a variety of housing types. The analysis should analyze land use controls independently and cumulatively with other land use controls. The analysis should specifically address requirements related to parking, heights, lot coverage and allowable density ranges. The analysis should address any impacts on cost, supply, housing choice, affordability, timing, approval certainty and ability to achieve maximum densities. For example, the element should describe allowed uses and typical densities in the PFS zone. In addition, the element notes that zones include a 34‐foot height restriction, the element should clarify whether three stories are allowed in zones that allow multifamily or add a program to address theconstraint. The required setbacks and maximum lot coverage requirements should also Yes High Provide a more detailed analysis of all land use requirements to determine if there are
constraints to the development of housing. Add a
program committing to remove found
constraints.

Town will revise based on Council
direction on sites
Zoning Fees and Transparency: The element must list all fees and clarify its compliance with new transparency requirements for posting all zoning and development standards, and fees for each parcel on the jurisdiction’s website pursuant to No Low Add a program to implement the transparency
requirements including online information aboutzoning standards and fees on the Town's website.

DE ‐ program added section 3.849
Fees and Exaction: While the element provides a cumulative analysis of fees for single family developments, it should also provide this analysis for multifamily developments.

In addition, the element should list all the various planning and impact fees associated with development, including but not limited to general plan amendments, zone changes, site plan or master plans, specific plans, environmental fees, and water/sewer fees.

Yes Medium Provide a more detailed analysis of fees imposed on multifamily housing, comparing them to per‐unit fees for single family housing. If fees on multifamily housing are disporportionate to those
on single‐family, add a program to update fees tomake them consistent between each building type.

Town will add (no multifamily fees)
Lastly, the element should analyze the proportion of total fees and the proportion to the development costs of both single family and multifamily housing.

No Medium See above. Town
Local Processing and Permit Procedures: While the element describes some of the use permit procedures, it must further describe and analyze the Town’s permit processing and approval procedures by zone and housing type. The analysis must evaluate theprocessing and permit procedures’ impacts as potential constraints on housing supply and affordability. For example, the element should clarify whether design review is required. In addition, the element must describe the CUP findings and procedures aswell as describe master plan review requirements for multifamily development andanalyze these as constraints on housing development. Based on the outcomes of the No Medium Provide a more detail analysis on processing and permitting procedures on single family versus
multifamily. If multifamily housing isdisproportionately impacted by these procedures, add a program to remove thisconstraint.

Town revised
Local Ordinances: The element must analyze any locally adopted ordinances that directly impacts the cost and supply of residential development. While the element states that the Town has a short‐term rental ordinance, it should be analyzed forconstraints on housing development.

No Low Add more detailed analysis of the short‐term
rental ordinance and its potential constraint onhousing development. If a cosntraint is found,add a program to remove the constraint.

Town revised
Streamlining Provisions: The element must clarify whether the Town has procedures in place consistent with streamlining procedures pursuant to Government Code section65913.4 and include programs as appropriate.

No Low Provide additional narrative on streamlining
provisions of SB 35 and SB 330. If no proceduresare codified, add a program to createstreamlining processes.

Town revised
ATTACHMENT 2
Constraints on Housing for Persons with Disabilities: The element must include an analysis of zoning, development standards, building codes, and process and permit procedures as potential constraints on housing for persons with disabilities. Forexample, the element must describe the findings and approval procedure for theTown’s Reasonable Accommodation procedure. In addition, the element must describe and analyze how group homes for seven or more are allowed within theTown and add programs as appropriate. For your information, zoning should simply implement a barrier‐free definition of family instead of subjecting, potentially persons No Medium Provide more analysis on the wasys in which local standards are a constraint on housing for persons
with disabilities. If constraints are found, add aprogram to remove them. In addition, add a program to explicitly allow group homes forseven or more persons with disabilities by‐right in any zone where residential uses are allowed.

TownDE ‐ program
revised section 3.516 andadded section 3.850
These housing types should not be excluded from residential zones, most notably low‐ density zones, which can constrain the availability of housing choices for persons with disabilities. Requiring these housing types to obtain a special use or CUP could potentially subject housing for persons with disabilities to higher discretionaryexceptions processes and standards where an applicant must, for example,demonstrate compatibility with the neighborhood, unlike other residential uses. The No Medium See above. Town
6 Availability of Financing: The element must describe the availability of financing, including private financing and government assistance programs, is generally available No Low Revise the constraints section to provide
additional information on financing.

Town researching ‐ will update
Approval Time and Requests for Lesser Densities: The element must include analysis of requests to develop housing at densities below those identified, the length of time between receiving approval for a housing development and submittal of an application for building permits. The element must address any hinderance on the construction of a locality’s share of the regional housing need.

No Low Provide a detailed analysis of projects within the last few years as to whether they requested
densities less than those allowed in the zoning. Inaddition, provide information on whether thereare significant gaps between when a developerreceives approval for a project, and when theyactually pull a permit. (Nongovernmental constraints)
Town will revise
7 Special Needs: While the element quantifies the Town’s special needs populations, it must also analyze their special housing needs. For a complete analysis of eachpopulation group, the element should discuss challenges faced by the population, the existing resources to meet those needs (e.g., availability senior housing units, # of
large units,
# of deed restricted units, etc.), an assessment of any gaps in resources, and proposed policies, programs, and funding to help address those gaps. In addition, the element must quantify and analyze the number of large households, elderly No Low Provide more information in the narrative about
the s[pecail housing needs of various groups. If
this information is already included, indicate to
HCD where this information is found.

Town researching ‐ will update
8 The element must include analysis of energy conservation opportunities in residential development. The analysis should facilitate the adoption of housing element policies and programs. For example, programs could provide incentives to promote higher density housing along transit, encourage green building techniques and materials innew construction and remodels, promote energy audits and participation in utility conservation programs, and facilitate energy conserving retrofits upon resale of No Medium Provide a list of activities the Town already undertakes to assist in creating energyconservation, including through programs provided by the County. Confer with the Countyon other programs the Town could promote to residents.

Town will revise
C1 To have a beneficial impact in the planning period and address the goals of the housing element, programs must be revised with discrete timelines (e.g., at least annually or month and year) or timeframes earlier in the planning period. Additionally, programs should include specific commitment and actions toward beneficial impacts or housing outcomes. Program language such as “discuss”, “review”, “develop” and “explore” should be complemented or replaced with commitment such as adopt, pursue, apply Yes High For all programs, provide concrete timelines for completion. For example, "In Q1 2024, conduct a
best practices review on ways to increase
rehabilitation of aging housing. In Q4 2024, bring
recommendations to the Planning Commission
and Town Council. Implement in Q1 2025".

Town revised throughout
 Program 3.814 (Adoption of an Inclusionary Zoning Ordinance) : The element should include additional information on the inclusionary fee and include a specific expanded discussion in section

3.814
ATTACHMENT 2
 Program 3.815 (Conservation and Rehabilitation of Existing Units) : The program should specify what actions will be taken and clarify how the Town will assist property expanded discussion in section

3.815
 Program 3.821 (Seniors) : The program should include outreach for the existing programs listed as well as include specific timing for implementation. expanded discussion in section

3.812
 Program 3.822 (Disabled and Developmentally Delayed Persons) : The program should include proactive outreach and specific timing for implementation. expanded discussin in section

3.822
 Program 3.823 (Equal Housing Opportunity) : The program should include implementation timing for each action listed as well as how often outreach will occur will revise timelines
 Programs 3.824 (Emergency Shelters, Transitional and Supportive Housing) and

3.831 (Energy Conservation) : The programs must include clear actions for added section 3.853
 Program 3.841 (Shared Housing) : The program should be revised to include specific timing, identify a responsible party, funding, and objective. In addition, the program should include proactive outreach and describe how the Town will provide revised section 3.841
 Program 3.842 (Housing Compliance and Monitoring) : The program should be revised with specific commitment beyond “consider” for the identified actions. Inaddition, the program should clarify the action being taken and include specific timing revised seciton 3.842
2 As noted in Finding B4, the element does not include a complete site analysis; therefore, the adequacy of sites and zoning were not established. Based on the resultsof a complete sites inventory and analysis, the Town may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of Yes High See discussions of ADUs and multifamily zoning, above.

Town will add based on Council
direction on sites
Program 3.813 (Multifamily Housing Development on School and other Properties):

This program should be revised to include specific incentives for implementation andclarify what actions will be completed as part of the program. In addition, the elementmust commit to the rezones and discuss the densities that will be allowed with the rezone. The program currently references timing associated with adoption of the element. The Town should be aware that if the adoption is not complete by the startof the planning period (January 31, 2023), the Town will be subject to right Yes High See discussions of ADUs and multifamily zoning, above.

Town will revise based on Council
direction on sites
Shortfall of Adequate Sites: If the element does not identify adequate sites to accommodate the regional housing need for lower‐income households, it must include a program(s) to identify sites with appropriate zoning to accommodate the regionalhousing need within the planning period. The program should identify the shortfall by income group, acreage, allowable densities, appropriate development standards and meet all by right requirements pursuant to Government Code section 65583.2,subdivisions (h) and (i), including but not limited to permitting multifamily uses by‐ TBD will revise based on Council
direction on sites
Replacement Housing Requirements: The housing element must include a program to provide replacement housing. (Gov. Code, § 65583.2, subd. (g)(3).) The replacementhousing program must adhere to the same requirements as set forth in Government No Medium Add a program to ensure replacement of lower
income units when demolished or when
substantial rehabilitation displaces residents.

DE ‐ program added program in section

3.851
3 The element must include a program(s) with specific actions and timelines to assist in the development of housing for extremely low‐income households. The program(s) could commit the Town to adopting priority processing, granting fee waivers ordeferrals, modifying development standards, granting concessions and incentives for housing developments that include units affordable to extremely low‐incomehouseholds; assisting, supporting or pursuing funding applications; and outreach and Yes Medium Add a program to adopt incentives and other
commitments to assist in the development of
extremely low‐income housing.

Town will revise
ATTACHMENT 2
In addition, the element must also include a program(s), as appropriate, to assist in the development of housing for all special needs households (e.g., elderly, homeless, farmworkers, persons with disabilities, female‐headed households). Program actions could include proactive outreach and assistance to non‐profit service providers and developers, prioritizing some funding for housing developments affordable to special needs households and offering financial incentives or regulatory concessions to Yes Medium Add a program to adopt incentives and other
commitments to assist in the development of
housing for persons with special needs.

Town
4As noted in Findings B5 and B6, the element requires a complete analysis of potential governmental and non‐governmental constraints. Depending upon the results of thatanalysis, the Town may need to revise or add programs and address and remove or mitigate any identified constraints. In addition, the element should be revised as TBD
5 The element must include actions that promote AFFH opportunities as stated in Finding B1. For example, the element could include a program committing to implement Government Code section 8899.50, subdivision (b) which requires the Town to administer its programs and activities relating to housing and community development in a manner to AFFH and take no action that is materially inconsistent with its obligation to AFFH. Programs should address enhancing housing mobility strategies; encouraging development of new affordable housing in high resourceareas; improving place‐based strategies to encourage community conservation and revitalization, including preservation of existing affordable housing; and protecting existing residents from displacement. The programs should also include specific Yes Medium Root Policy is assisting with this comment. RP/Town 6 Program 3.812 (New Construction of Affordable Accessory Dwelling Units): The program must clarify the actions that will be implemented to incentivize ADUs beyond“consider”. In addition, the program should include implementation timing for each specific action. Lastly, as mentioned above, the Town should adopt a program to comply with state ADU law, monitor production and affordability of ADUs throughout Yes High See discussions of ADUs and multifamily zoning, above.

Town revised
D Establish the number of housing units, by income level, that can be constructed, rehabilitated, and conserved over
a five‐year time frame. ( Gov. Code,
§ 65583, subd.
(b)(1
& 2).)
T he element did not address this requirement. The element must include quantified objectives for new construction, rehabilitation, and conservation by income group, Yes Medium Estimate the number of new units, both single family, ADUs and multifamily, to be constructedduring the planning period, as well as thoseconserved or rehabilitated. Include estimates forthe number of units in each income category.

Town will revise based on Council
direction on sites
E While the element includes a general summary of the public participation process, the element should also demonstrate diligent efforts were made to involve all economic segments of the community in the development of the housing element. The elementcould describe the efforts to circulate the housing element among low‐ and moderate‐ income households and organizations that represent them and to involve such groups and persons in the element throughout the process. In addition, the element shouldalso summarize the public comments and describe how they were considered and incorporated into the element. Lastly, the element should describe whether No High Provide further documentation to explan how
lower income groups, people for whom English
may not be their first language, and other oftennon‐participating residents were engaged in the process, for example by mailers to residents (notjust owners) in multiple language, etc.

Town will revise
F The Housing Element shall describe the means by which consistency will be achieved with other general plan elements and community goals. ( Gov. Code, § 65583, subd.
(c)(7).)The element must describe how consistency was achieved and how it will be maintained during the planning period. For example, the element could include aprogram to conduct an internal consistency review of the General Plan as part of the No Low Revise narrative to explain the process by which the Housing Element will be kept consistent with
other Elements of the General Plan. If necessary,
add a specific program to commit to an annual or
biannual review to ensure consistency.

Town will revise
ATTACHMENT 2
ATTACHMENT 3
HCD Comment letter – track responses
10/31/22
# Comment Statutory Authority
1 A A thorough program-by-program review is necessary to evaluate Town's performance in addressing housing goals.

While the element describes actual results of the prior element’s programs, it must provide a description of how the objectives and programs of the updated element
incorporate changes resulting from the evaluation.

As part of the review of programs in the past cycle, the element must analyze the effectiveness of goals, policies, and related actions in meeting the housing needs of special needs populations (e.g., elderly, persons with disabilities, large households, female headed households, farmworkers and persons experiencing homelessness). Programs
should be revised as appropriate to reflect the results of this evaluation
Government Code Section 65588(a):
"Each local government shall review its housing element as frequently as appropriate to evaluate all of the following:
(1) The appropriateness of the housing goals, objectives, and policies in contributing to the attainment of the state housing goal. (2) The effectiveness of the housing element in attainment of the community's housing goals and objectives.
(3) The progress of the city, county, or city and county in implementation of the housing element.
(4) The effectiveness of the housing element goals, policies and related actions to meet the community's needs, pursuant to paragraph (7) of subdivision (a) of Section 65583."
Government Code Section 65583(a)(7):
"The element shall contain…[a]n analysis of any special housing needs, such as those of the elderly; persons with disabilities, including a development disability, as defined in Section 4512 of the Welfare and Institutions Code; large families, farmworkers; families with female heads of households; and families and persons in need of emergency shelter.
2 B.1 Fair Housing Enforcement and Capacity: While the housing element includes a summary of fair housing enforcement
and outreach capacity, it should describe any fair housing lawsuits and related enforcement actions. In addition, this section should address how outreach will occur throughout planning period.

Government Code Section 65583(c)(10)(A)(i):
"In order to make adequate provision for the housing needs of all economic segments of the community, the program shall…[a]ffirmatively further fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2. The program shall include an assessment of fair housing in the jurisdiction that shall include…[a] summary of fair housing issues in the jurisdiction and an assessment of the jurisdiction's fair housing enforcement and fair housing outreach capacity."
3 Local Data and Knowledge: The element must include local data, knowledge, and other relevant factors to discuss and analyze any unique attributes about the Town related to fair Government Code Section 65583(c)(10)(A)(ii)-(iii):

ATTACHMENT 3
# Comment Statutory Authority
housing issues. The element should complement federal,
state, and regional data with local data and knowledge
where appropriate to capture emerging trends and issues, including utilizing knowledge from local and regional
advocates and service providers, Town staff and related local and county planning documents and should include an analysis of the history of exclusionary zoning in the Town. "In order to make adequate provision for the housing needs of all economic segments of the community, the program shall…[a]ffirmatively further fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2. The program shall include an assessment of fair housing in the jurisdiction that shall include…[a]n analysis of available federal, state, and local data and knowledge to identify integration and segregation patterns and trends, racially or ethnically concentrated areas of poverty and affluence, disparities in access to opportunity, and disproportionate housing needs, including displacement risk. The analysis shall identify and examine such patterns, trends, areas, disparities, and needs, both within the jurisdiction and comparing the jurisdiction to the region in which it is located, based on race and other characteristics protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title) and Section 65008…" and "[a]n assessment of the contributing factors, including the local and regional historical origins and current policies and practices, for the fair housing issues identified under clauses (i) and (ii)." 4 Integration and Segregation: The element provided some data regarding segregation and integration, but it should also describe concentrations of race both locally and
regionally (i.e., geographically within the Town, as well as comparing the Town to the region). In addition, the element must discuss and analyze data on persons with disabilities regionally and over time. The element must describe and analyze concentrations of familial status both locally and regionally. Lastly, the element must describe what
contributes to the high incomes geographically within the Town and provide a regional analysis.

Racial/Ethnic Areas of Concentration of Poverty (R/ECAP) and Affluence (RCAA): The element must also address
concentrated areas of affluence both locally and regionally.

The analysis should evaluate the patterns and changes
over time at a local (e.g., neighborhood to neighborhood) and regional level (e.g., Town to region) and include
programs as appropriate (not limited to the regional housing need allocation (RHNA)).

Government Code Section 65583(c)(10)(A)(ii):
"In order to make adequate provision for the housing needs of all economic segments of the community, the program shall…[a]ffirmatively further fair housing …. The program shall include an assessment of fair housing in the jurisdiction that shall include…[a]n analysis of available federal, state, and local data and knowledge to identify integration and segregation patterns and trends, racially or ethnically concentrated areas of poverty and affluence, disparities in access to opportunity, and disproportionate housing needs, including displacement risk. The analysis shall identify and examine such patterns, trends, areas, disparities, and needs, both within the jurisdiction and comparing the jurisdiction to the region in which it is located, based on race and other characteristics protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title) and Section 65008…"
5 Disparities in Access to Opportunity: While the element included some data, it should discuss what contributes to the lower education score in the Town west of El Camino Government Code Section 65583(c)(10)(A)(ii):

ATTACHMENT 3
# Comment Statutory Authority
Real. In addition, the element must analyze the disparities in access to jobs by protected classes and analyze what contributes to the varied access to jobs within the Town.

The element must also provide a regional analysis for
access to opportunity for employment and environment.

Lastly, while the element describes a 2018 transit study, it must describe and analyze access to transit both locally and regionally.
"In order to make adequate provision for the housing needs of all economic segments of the community, the program shall…[a]ffirmatively further fair housing …. The program shall include an assessment of fair housing in the jurisdiction that shall include…[a]n analysis of available federal, state, and local data and knowledge to identify integration and segregation patterns and trends, racially or ethnically concentrated areas of poverty and affluence, disparities in access to opportunity, and disproportionate housing needs, including displacement risk. The analysis shall identify and examine such patterns, trends, areas, disparities, and needs, both within the jurisdiction and comparing the jurisdiction to the region in which it is located, based on race and other characteristics protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title) and Section 65008…"
6 Disproportionate Housing Needs, Including Displacement Risk: While the element includes some discussion on
disproportionate housing needs, this discussion should also address the patterns within the Town and evaluate any
similarities with other components of the assessment of fair housing. In addition, the analysis should include both local and regional discussions of cost burden by tenure. In
addition, the element must include a regional analysis for overcrowding and substandard housing. The element
should also analyze any demographic data available for
persons experiencing homelessness. The analysis on
displacement risk should be expanded beyond units at- risk of losing subsidy and also describe the high risk of
residents experiencing exclusion. Lastly, the element must describe and analyze areas sensitive to displacement risk due to disaster (e.g., earthquake, fire, and flood).

Government Code Section 65583(c)(10)(A)(ii):
"In order to make adequate provision for the housing needs of all economic segments of the community, the program shall…[a]ffirmatively further fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2. The program shall include an assessment of fair housing in the jurisdiction that shall include…[a]n analysis of available federal, state, and local data and knowledge to identify integration and segregation patterns and trends, racially or ethnically concentrated areas of poverty and affluence, disparities in access to opportunity, and disproportionate housing needs, including displacement risk. The analysis shall identify and examine such patterns, trends, areas, disparities, and needs, both within the jurisdiction and comparing the jurisdiction to the region in which it is located, based on race and other characteristics protected by t he California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title) and Section 65008…"
7 Affirmatively Furthering Fair Housing (AFFH) and Sites Inventory: While the element includes a summary of fair housing related to the sites inventory, it must analyze how the identified sites contribute to or mitigate fair housing issues. An analysis should address all of the income
categories of identified sites with respect to location, the number of units by all income groups and how that affects the existing patterns for all components of the assessment Government Code Section 65583(a)(3):
"An assessment of housing needs and an inventory of resources and constraints relevant to the meeting of these needs. The assessment and inventory shall include all…
[a]n inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for ATTACHMENT 3
# Comment Statutory Authority
of fair housing (e.g., segregation and integration, access to opportunity). This analysis should specifically address whether the ADU strategy to accommodate lower-income
households contributes to continued exclusion and
disparities in access to opportunity. If sites exacerbate conditions or isolates the RHNA by income group, the
element should identify further program actions (not limited to the RHNA) that will be taken to promote equitable quality of life throughout the community (e.g., housing mobility and new opportunities in higher resource areas).
redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites, and an analysis of the relationship of the sites identified in the land inventory to the jurisdiction’s duty to affirmatively further fair housing."
9 Contributing Factors to Fair Housing Issues: Based on the outcomes of a complete analysis, the element should reassess contributing factors and particularly prioritize those factors then formulate appropriate policies and programs.

Currently the element only includes one contributing factor.

The element should address potential contributing factors such as barriers like exclusionary zoning or a lack of state and federally funded developments. Once additional factors are identified, they should then be prioritized.

Government Code Section 65583(c)(10)(A)(iii)
"In order to make adequate provision for the housing needs of all economic segments of the community, the program shall include…[a]n assessment of the contributing factors, including the local and regional historical origins and current policies and practices, for the fair housing issues identified under clauses (i) and (ii)."
9 Goals and Actions: The element must be revised to add or modify goals and actions based on the outcomes of a
complete analysis. Goals and actions must specifically
respond to the analysis and identified and prioritized
contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific
commitment, discrete timing or milestones, geographic
targeting and metrics or numerical targets. As appropriate, actions must address housing mobility, new housing
choices and affordability in higher resource or higher
income areas, place-based strategies for community
preservation and revitalization and displacement protection.

Government Code Section 65583(c)(10)(A)(iv) –(v):
"In order to make adequate provision for the housing needs of all economic segments of the community, the program shall include…[a]n identification of the jurisdiction’s fair housing priorities and goals, giving highest priority to those factors identified in clause (iii) that limit or deny fair housing choice or access to opportunity, or negatively impact fair housing or civil rights compliance, and identifying the metrics and milestones for determining what fair housing results will be achieved" and "[s]trategies and actions to implement those priorities and goals, which may include, but are not limited to, enhancing mobility strategies and encouraging development of new affordable housing in areas of opportunity, as well as place-based strategies to encourage community revitalization, including preservation of existing affordable housing, and protecting existing residents from displacement."
10 2 Extremely Low-Income (ELI) Households: The element must quantify the number of existing and projected ELI
households, and also analyze their housing needs. The
analysis of ELI housing needs should also evaluate ELI
Government Code Section 65583(a)(1):
"The element shall contain…[a]n assessment of housing needs and an inventory or resources and constraints relevant to the meeting of these needs. The ATTACHMENT 3
# Comment Statutory Authority
households by tenure. assessment and inventory shall include…[a]n analysis of population and employment trends and documentation of projections and a quantification of the locality's existing and project housing needs for all income levels, including extremely low income households, as defined in subdivision (b) of Section 50105 and Section 50106 of the Health and Safety Code…Local agencies shall calculate the subset of very low income households …that qualify as extremely low income households."
11 3 Overpayment: The element must quantify and analyze overpayment by tenure (i.e., renter and owner), for both the overall population and lower-income households.

Government Code Section 65583(a)(2):
"The element shall contain…[a]n assessment of housing needs and an inventory or resources and constraints relevant to the meeting of these needs. The assessment and inventory shall include…[a]n analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition."
12 Housing Conditions: The element includes the number of substandard housing units from Census data. However, the element must include an estimate of the number of units in need of rehabilitation and replacement. For example, the analysis could include estimates from a recent windshield survey or sampling, estimates from the code enforcement agency, or information from knowledgeable
builders/developers, including non-profit housing
developers or organizations.

Government Code Section 65583(a)(2):
"The element shall contain…[a]n assessment of housing needs and an inventory or resources and constraints relevant to the meeting of these needs. The assessment and inventory shall include…[a]n analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition."
13 Housing Costs: While the element includes estimated rents for residents, it utilizes American Community Survey (ACS) data. The element should supplement census data with
other sources (e.g., local knowledge).

Government Code Section 65583(a)(2):
"The element shall contain…[a]n assessment of housing needs and an inventory or resources and constraints relevant to the meeting of these needs. The assessment and inventory shall include…[a]n analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition."
14 4 Sites Inventory: While the sites inventory includes many requirements, it must include the general plan designation.

Additionally, there are some discrepancies between cited sites and the inventory. For example, two of the school sites do not list any units in the inventory and the numbers in the inventory do not match what is stated in the analysis.

Government Code Section 65583(a)(3):
"The housing element shall consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing. The housing element shall identify ATTACHMENT 3
# Comment Statutory Authority
Additional sites will likely need to be identified to
accommodate the RHNA.
adequate sites for housing, including rental housing, factory-built housing, mobilehomes, and emergency shelters, and shall make adequate provision for the existing and projected needs of all economic segments of the community.

The element shall contain all of the following:
…
(3) An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites, and an analysis of the relationship of the sites identified in the land inventory to the jurisdiction’s duty to affirmatively further fair housing."
Government Code Section 65583.2(b)(2):
"The inventory of land shall include…[t]he size of each property listed…and the general plan designation and zoning of each property."
15 Realistic Capacity: The element must provide assumptions for the calculation of residential capacity on identified sites included in the inventory and must also provide support for these assumptions. For example, the element should
demonstrate what specific trends, factors, and other
evidence led to the assumptions. The estimate of the
number of units for each site must be adjusted as
necessary, based on the land use controls and site
improvements, typical densities of existing or approved residential developments at a similar affordability level in that jurisdiction, and on the current or planned availability and accessibility of sufficient water, sewer, and dry utilities.

Government Code Section 65583.2(c):
"[A} city or county shall determine whether each site in the inventory can accommodate the development of some portion of its share of the regional housing need by income level during the planning period, as determined pursuant to Section 65584. The inventory shall specify for each site the number of units that can realistically be accommodated on that site and whether the site is adequate to accommodate lower income housing, moderate-income housing, or above moderate-income housing…
“The city or county shall determine the number of housing units that can be accommodated on each site as follows:
“(1) If local law or regulations require the development of a site at a minimum density, the department shall accept the planning agency’s calculation of the total housing unit capacity on that site based on the established minimum density. If the city or county does not adopt a law or regulation requiring the development of a site at a minimum density, then it shall demonstrate how the number of units determined for that site pursuant to this subdivision will be accommodated.

ATTACHMENT 3
# Comment Statutory Authority
“(2) The number of units calculated pursuant to paragraph (1) shall be adjusted as necessary, based on the land use controls and site improvements requirement identified in paragraph (5) of subdivision (a) of Section 65583, the realistic development capacity for the site, typical densities of existing or approved residential developments at a similar affordability level in that jurisdiction, and on the current or planned availability and accessibility of sufficient water, sewer, and dry utilities.”
16 Small and Large Sites: Sites smaller than a half-acre and larger than ten acres in size are deemed inadequate to
accommodate housing for lower-income housing unless it
is demonstrated that sites of equivalent size and
affordability were successfully developed during the prior planning period or unless the housing element describes other evidence to HCD that the site is adequate to
accommodate lower-income housing (Gov. Code, §
65583.2, subd. (c)(2)(A).). The element lists small and large sites but also should evaluate whether those sites are suitable to accommodate housing for lower-income
households and add or modify programs as appropriate.

For example, the element could list past consolidations by the number of parcels, number of owners, zone, number of units, affordability and circumstances leading to
consolidation and then relate those trends to the identified sites or could explain the potential for consolidation on a site-by-site basis.

Government Code Section 65583.2(c)(2)(A)-(B):
"(A) A site smaller than half an acre shall not be deemed adequate to accommodate lower income housing need unless the locality can demonstrate that site of equivalent size were successfully developed during the prior planning period for an equivalent number of lower income housing units as project for the site or unless the locality provides other evidence to the department that the site is adequate to accommodate lower income housing. (B) A site larger than 10 acres shall not be deemed adequate to accommodate lower income housing need unless the locality can demonstrate that sites of equivalent size were successfully developed during the prior planning period for an equivalent number of lower income housing units as projected for the site or unless the locality provides other evidence to the department that the site can be developed as lower income housing. For purposes of this subparagraph, 'site' means that portion of the parcel or parcels designated to accommodate lower income housing needs pursuant to this subdivision." 17 Suitability of Nonvacant Sites: While the element includes a description of the identified sites, it must include an analysis demonstrating the potential for additional
development on nonvacant sites. Specifically additional details on the school sites and Cal Water site. The
description of existing uses should be sufficiently detailed to facilitate an analysis demonstrating the potential for additional development in the planning period. In addition, the element should analyze the extent that existing uses may impede additional residential development. For
example, the element includes sites identified as a private college, a school site, and a reservoir site, but little analysis was provided to demonstrate whether these existing uses Government Code Section 65583.2(b)(3):
"The inventory of land shall include…[f]or nonvacant sites, a description of the existing use of each property."
Government Code Section 65583.2(g)(1) and (2):
"(1) For sites described in paragraph (3) of subdivision (b) [nonvacant sites], the city or county shall specify the additional development potential for each site within the planning period and shall provide an explanation of the methodology used to determine the development potential. The methodology shall consider factors including the extent to which existing uses may constitute an impediment to additional residential development, the city's or county's past ATTACHMENT 3
# Comment Statutory Authority
would impede development of these sites within the
planning period. The element can summarize past
experiences converting existing uses to higher density
residential development, include current market demand for the existing use, provide analysis of existing leases or contracts that would perpetuate the existing use or prevent additional residential development and include current
information on development trends and market conditions in the Town and relate those trends to the sites identified.

The element could also consider indicators such as age
and condition of the existing structure expressed developer interest, existing versus allowable floor area, low
improvement to land value ratio, and other factors.
experience with converting existing uses to higher density residential development, the current market demand for the existing use, an analysis of any existing leases or other contracts that would perpetuate the existing use or prevent redevelopment of the site for additional residential development, development trends, market conditions, and regulatory or other incentives or standards to encourage additional residential development on these sites. "(2) In addition to the analysis required in paragraph (1), when a city or county is relying on nonvacant sites described in paragraph (3) of subdivision (b) to accommodate 50 percent or more of its housing need for lower income households, the methodology used to determine additional development potential shall demonstrate that the existing use identified pursuant to paragraph (3) of subdivision (b) does not constitute an impediment to additional residential development during the period covered by the housing element. An existing use shall be presumed to impede additional residential development, absent findings based on substantial evidence that the use is likely to be discontinued during the planning period.”
18 Zoning for Lower-Income Households: The element must demonstrate zoning appropriate to accommodate housing
for lower-income households. For sites with zoning meeting specified densities or default densities (20 units per acre in Atherton), no analysis is required. Otherwise, the element must include analysis based on statutory factors, including but not limited to financial feasibility and experience within the zone.

Government Code Section 65583.2(c)(3):
"For the number of units calculated to accommodate its share of the regional housing need for lower income households pursuant to paragraph (2), a city or a county shall do either of the following:
(A) Provide an analysis demonstrating how the adopted densities accommodate this need. The analysis shall include, but is not limited to, factors such as market demand, financial feasibility, or information based on development project experience within a zone or zones that provide housing for lower income households.
(B) The following densities shall be deemed appropriate to accommodate housing for lower income households:
…
(iii) For a suburban jurisdiction: sites allowing at least 20 units per acre. …"
19 SB 9 Sites: The element identifies SB 9 as a strategy to accommodate the part of the Town’s RHNA. To support
these assumptions, the analysis must include experience, Government Code Section 65583.1(a):

ATTACHMENT 3
# Comment Statutory Authority
trends and market conditions that allow lot splits and
missing middle uses. The analysis must list the potential SB 9 sites and demonstrate the likelihood of
redevelopment, including whether existing uses constitute as an impediment for additional residential use. The
analysis should describe how the Town determined eligible properties, whether the assumed lots will have turnover, if the properties are easy to subdivide, and the condition of the existing structures. The analysis should also describe interest from property owners as well as experience. The analysis should provide support for the units being
developed within the planning period. Based on the
outcomes of this analysis, the element should add or
modify to establish zoning and development standards
early in the planning period and implement incentives to encourage and facilitate development as well as monitor development every two years with and identify additional sites within six months if assumptions are not being met.

The element should support this analysis with local
information such as local developer or owner interest to utilize zoning and incentives established through SB 9. "The inventory of land shall include…[f]or nonvacant sites, a description of the existing use of each property."
Government Code Section 65583.2(g)(1):
"(1) For sites described in paragraph (3) of subdivision (b) [nonvacant sites], the city or county shall specify the additional development potential for each site within the planning period and shall provide an explanation of the methodology used to determine the development potential. The methodology shall consider factors including the extent to which existing uses may constitute an impediment to additional residential development, the city's or county's past experience with converting existing uses to higher density residential development, the current market demand for the existing use, an analysis of any existing leases or other contracts that would perpetuate the existing use or prevent redevelopment of the site for additional residential development, development trends, market conditions, and regulatory or other incentives or standards to encourage additional residential development on these sites.” 20 Publicly Owned Sites: The element identifies multiple publicly-owned sites including the Public Facilities and Schools District, the Menlo School, and Cal Water Bear
Gulch Reservoir sites. The element must include additional discussion on each of the publicly- owned sites identified to accommodate the RHNA. Specifically, the analysis should address general plan designations, allowable densities, support for residential capacity assumptions, existing uses and any known conditions that preclude development in the planning period and the potential schedule for development.

If zoning does not currently allow residential uses at
appropriate densities, then the element must include
programs to rezone sites pursuant to Government Code
section 65583.2, subdivisions (h) and (i). In addition, the housing element, where appropriate, must include a
description of whether there are any plans to sell the
property during the planning period and how the jurisdiction will comply with the Surplus Land Act Article 8
(commencing with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5.

Government Code Section 65583.2(a):
"…As used in this section, 'land suitable for residential development' includes all of the following sites that meet the standards set forth in subdivisions (c) and (g):
…
(3) Residentially zoned sites that are capable of being developed at a higher density, including sites owned or leased by a city, county, or city and county. (4) Sites zoned for nonresidential use that can be redeveloped for residential use, and for which the housing element includes a program to rezone the site, as necessary, to permit residential use, including sites owned or leased by a city, county, or city and county."
Government Code Section 65583.2(b):
"The inventory of land shall include all of the following:
…
ATTACHMENT 3
# Comment Statutory Authority
(2) The size of each property listed pursuant to paragraph (1), and the general plan designation and zoning of each property.
(3) For nonvacant sites, a description of the existing use of each property. If a site subject to this paragraph is owned by the city or county, the description shall also include whether there are any plans to dispose of the property during the planning period and how the city or county will comply with Article 8 (commencing with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5." 21 Previously Identified Nonvacant and Vacant Sites: If nonvacant sites identified in a prior adopted housing
element or vacant sites identified in two or more
consecutive planning periods, the sites are inadequate to accommodate housing for lower-income households
unless:
• The site’s current zoning is appropriate for the development of housing affordable to lower-income households by either including analysis or meeting the appropriate density and • The site is subject to a housing element program that requires rezoning within three years of the beginning of the planning period to allow residential use by- right for housing developments in which at least 20 percent of the units are affordable to lower-income households. (Gov. Code, §
65583.2, subd. (c).)
Government Code Section 65583.2(c):
"Based on the information provided in subdivision (b), a city or county shall determine whether each site in the inventory can accommodate the development of some portion of its share of the regional housing need by income level during the planning period, as determined pursuant to Section 65584. The inventory shall specify for each site the number of units that can realistically be accommodated on that site and whether the site is adequate to accommodate lower-income housing, moderate-income housing, or above moderate-income housing. A nonvacant site identified pursuant to paragraph (3) or (4) of subdivision (a) in a prior housing element and a vacant site that has been included in two or more consecutive planning periods that was not approved to develop a portion of the locality's housing need shall not be deemed adequate to accommodate a portion of the housing need for lower income households that must be accommodated in the current housing element planning period unless the site is zoned at residential densities consistent with paragraph (3) of this subdivision and the site is subject to a program in the housing element requiring rezoning within three years of the beginning of the planning period to allow residential use by right for housing developments in which at least 20 percent of the units are affordable to lower income households…."
22 Infrastructure: The element must demonstrate
sufficient existing or planned water, sewer, and
other dry utilities supply capacity, including the
availability and access to distribution facilities, to
accommodate the RHNA.

For your information, water and sewer service
Government Code Section 65583.2(a)(5):
"(A) A description of existing or planned water, sewer, and other dry utilities supply, including the availability and access to distribution facilities." ATTACHMENT 3
# Comment Statutory Authority
providers must establish specific procedures to
grant priority water and sewer service to
developments with units affordable to lowerincome households. (Gov. Code, § 65589.7.) Local governments are required to immediately
deliver the housing element to water and sewer
service providers.
(B) Parcels included in the inventory must have sufficient water, sewer, and dry utilities supply available and accessible to support housing development or be included in an existing general plan program or other mandatory program or plan, including a program or plan of a public or private entity providing water or sewer service, to secure sufficient water, sewer, and dry utilities supply to support housing development. This paragraph does not impose any additional duty on the city or county to construct, finance, or otherwise provide water, sewer, or dry utilities to parcels included in the inventory." Government Code Sectioon 65589.7(a):
“The housing element adopted by the legislative body and any amendments made to that element shall be immediately delivered to all public agencies or private entities that provide water or sewer services for municipal and industrial uses, including residential, within the territory of the legislative body.”
23 Electronic Sites Inventory: Pursuant to Government Code section 65583.3, subdivision (b), upon adoption of the
housing element, the Town must submit an electronic
version of the sites inventory with its adopted housing element to [email protected]. HCD has not
received a copy of the electronic inventory. Please note, the Town must utilize standards, forms, and definitions adopted by HCD when preparing the sites inventory.

Please see HCD’s housing element webpage at
https://www.hcd.ca.gov/community-development/housingelement/index.shtml#element for a copy of the form and instructions. The Town can reach out to HCD at
[email protected] for technical assistance.

Government Code Section 65583.3(a):
"For a housing element or amendment adopted on or after January 1, 2021, the planning agency shall submit to the department an electronic copy of its inventory of land suitable for residential development developed pursuant to paragraph (3) of subdivision (a) of Section 65583 and subdivision (b) of this section with the copy of its housing element or amendment submitted pursuant to subdivision (g) of Section 65585. The local government shall ensure, to the best of its knowledge, that the inventory of land submitted to the department is true and correct."
24 Accessory Dwelling Units (ADUs): The element projects approximately 35 ADUs per year over the eight-year
planning period. This trend is inconsistent with HCD
records of 19 ADUs per year. To support assumptions for ADUs in the planning period, the element should reduce
the number of ADUs assumed per year and reconcile
trends with HCD records, including additional information such as more recent permitted units and inquiries,
resources and incentives, other relevant factors and modify Government Code Section 65583.1(a):
" The Department of Housing and Community Development, in evaluating a proposed or adopted housing element for substantial compliance with this article, may allow a city or county to identify adequate sites, as required pursuant to Section 65583, by a variety of methods, including, but not limited to, redesignation of property to a more intense land use category and increasing the density allowed within one or more categories. The department ATTACHMENT 3
# Comment Statutory Authority
policies and programs as appropriate. Further, programs should commit to additional incentives and strategies,
frequent monitoring (every other year) and specific
commitment to adopt alternative measures such as
rezoning or amending the element within a specific time (e.g., six months) if needed. The element must also
address affordability assumptions for ADU projections.
may also allow a city or county to identify sites for accessory dwelling units based on the number of accessory dwelling units developed in the prior housing element planning period whether or not the units are permitted by right, the need for these units in the community, the resources or incentives available for their development, and any other relevant factors, as determined by the department. Nothing in this section reduces the responsibility of a city or county to identify, by income category, the total number of sites for residential development as required by this article." Government Code Section 65852.2(m):
“A local agency may count an accessory dwelling unit for purposes of identifying adequate sites for housing, as specified in subdivision (a) of Section 65583.1, subject to authorization by the department and compliance with this division.” 25 Zoning for a Variety of Housing Types:

Emergency Shelters: The element should clarify shelters are permitted without discretionary action and discuss
available sites, acreage, including typical parcel sizes and the presence of reuse opportunities, proximity to
transportation and services and any conditions
inappropriate for human habitability. The analysis should also list and evaluate all development standards and
address the constraints on spacing and shelter size with a program. Finally, the element should analyze whether
parking requirements comply with AB139/Government
Code section 65583, subdivision (a)(4)(A) or include a
program to comply with this requirement.

Government Code Section 65583(a)(4):
"(A) The identification of a zone or zones where emergency shelters are allowed as a permitted use without a conditional use or other discretionary permit. The identified zone or zones shall include sufficient capacity to accommodate the need for emergency shelter identified in paragraph (7), except that each local government shall identify a zone or zones that can accommodate at least one year-round emergency shelter. If the local government cannot identify a zone or zones with sufficient capacity, the local government shall include a program to amend its zoning ordinance to meet the requirements of this paragraph within one year of the adoption of the housing element…. The local government shall also demonstrate that existing or proposed permit processing, development, and management standards are objective and encourage and facilitate the development of, or conversion to, emergency shelters. Emergency shelters may only be subject to those development and management standards that apply to residential or commercial development within the same zone except that a local government may apply written, objective standards that include all of the following:

ATTACHMENT 3
# Comment Statutory Authority
(i) The maximum number of beds or persons permitted to be served nightly by the facility.
(ii) Sufficient parking to accommodate all staff working in the emergency shelter, provided that the standards do not require more parking for emergency shelters than other residential or commercial uses within the same zone.
(iii) The size and location of exterior and interior onsite waiting and client intake areas.
(iv) The provision of onsite management.
(v) The proximity to other emergency shelters, provided that emergency shelters are not required to be more than 300 feet apart. (vi) The length of stay.
(vii) Lighting.
(viii) Security during hours that the emergency shelter is in operation. (B) The permit processing, development, and management standards applied under this paragraph shall not be deemed to be discretionary acts within the meaning of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code)."
26 Housing for Employees: The Employee Housing Act
permits housing under specific provisions. Section 17021.5 requires employee housing for six or fewer employees to be treated as a single-family structure and permitted in the same manner as other dwellings of the same type in the
same zone. Section 17021.6 requires employee housing
consisting of no more than 12 units or 36 beds to be
permitted in the same manner as other agricultural uses in the same zone. The element must demonstrate compliance
with these requirements and include programs as
appropriate.

Health & Safety Code Secctioon 17021.5(b):
(b) Any employee housing providing accommodations for six or fewer employees shall be deemed a single-family structure with a residential land use designation for the purposes of this section. For the purpose of all local ordinances, employee housing shall not be included within the definition of a boarding house, rooming house, hotel, dormitory, or other similar term that implies that the employee housing is a business run for profit or differs in any other way from a family dwelling. No conditional use permit, zoning variance, or other zoning clearance shall be required of employee housing that serves six ATTACHMENT 3
# Comment Statutory Authority
or fewer employees that is not required of a family dwelling of the same type in the same zone. Use of a family dwelling for purposes of employee housing serving six or fewer persons shall not constitute a change of occupancy for purposes of Part 1.5 (commencing with Section 17910) or local building codes.

Health & Safety Code Section 17021.6:
(b) Any employee housing consisting of no more than 36 beds in a group quarters or 12 units or spaces designed for use by a single family or household, or that is approved pursuant to Section 17021.8, shall be deemed an agricultural land use for the purposes of this section. Except as provided in Section 17021.8, for the purpose of all local ordinances, employee housing shall not be deemed a use that implies that the employee housing is an activity that differs in any other way from an agricultural use. No conditional use permit, zoning variance, or other discretionary zoning clearance shall be required of this employee housing that is not required of any other agricultural activity in the same zone. The permitted occupancy in employee housing in a zone allowing agricultural uses shall include agricultural employees who do not work on the property where the employee housing is located.
27 By-Right Permanent Supportive Housing: Supportive
housing shall be a use by- right in zones where multifamily and mixed uses are permitted, including nonresidential
zones permitting multifamily uses pursuant to Government Code section 65651. The element must demonstrate
compliance with these requirements and include programs as appropriate.

Government Code Section 66583(c)(3):
"In order to make adequate provision for the housing needs of all economic segments of the community, the program shall…[a]ddress and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. … Supportive housing, as defined in Section 65650, shall be a use by right in all zones where multifamily and mixed uses are permitted, as provided in Article 11 (commencing with Section 65650)."
28 Low Barrier Navigation Centers: 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 pursuant to Government Code section 65660. The element must demonstrate
compliance with this requirement and include programs as appropriate.

Government Code Section 65662:
“A Low Barrier Navigation Center development is a use by right in areas zoned for mixed use and nonresidential zones permitting multifamily uses, if it meets the requirements of this article.”
ATTACHMENT 3
# Comment Statutory Authority
Government Code Section 65661(b):
“(b) “Use by right” has the meaning defined in subdivision (i) of Section 65583.2. Division 13 (commencing with Section 21000) of the Public Resources Code shall not apply to actions taken by a public agency to lease, convey, or encumber land owned by a public agency, or to facilitate the lease, conveyance, or encumbrance of land owned by a public agency, or to provide financial assistance to, or otherwise approve, a Low Barrier Navigation Center constructed or allowed by this section.”
29 Mobile Homes: The element must clarify whether mobile homes on a permanent foundation in the PFS zone are
approved in the same way as single-family homes, if not a program should be added as appropriate.

Government Code Section 65583(c)(1):
"Sites shall be identified as needed to affirmatively further fair housing and to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, singleroom occupancy units, emergency shelters, and transitional housing." 30 Multifamily Housing: The element states that multifamily housing is allowed only in PFS zone with a Conditional Use Permit (CUP) and master plan. The element must analyze
and demonstrate realistic opportunities for multifamily and analyze the CUP requirement for multifamily as a potential constraint on housing supply and affordability. The analysis should identify findings of approval for the CUP and their potential impact on development approval certainty, timing, feasibility and cost. If constraints are identified, programs should be included to address and remove or modify these constraints.

Government Code Section 65583(a)(5):
"An assessment of housing needs and an inventory of resources and constraints relevant to the meeting of these needs. The assessment and inventory shall include…[a]n analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, local processing and permit procedures, and any locally adopted ordinances that directly impact the cost and supply of residential development. The analysis shall also demonstrate local efforts to remove governmental constraints that hinder the locality from meeting its share of the regional housing need in accordance with Section 65584 and from meeting the need for housing for persons with disabilities, supportive housing, transitional housing, and emergency shelters identified pursuant to paragraph (7)." ATTACHMENT 3
# Comment Statutory Authority
Government Code Section 65583(c)(1):
" Sites shall be identified as needed to affirmatively further fair housing and to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, singleroom occupancy units, emergency shelters, and transitional housing." 31 Accessory Dwelling Units (ADUs): The element indicates the Town modified its zoning code to ease barriers to the development of ADU’s. However, after a cursory review of the Town’s ordinance, HCD discovered several areas
which are not consistent with State ADU Law. HCD will
provide a complete listing of ADU non-compliance issues under a separate cover. As a result, the element should include a program to update the Town’s ADU ordinance to comply with state law. For more information, please consult HCD’s ADU Guidebook, published in December 2020,
which provides detailed information on new state
requirements surrounding ADU development.

Government Code Section 65852.2(h):
(1) A local agency shall submit a copy of the ordinance adopted pursuant to subdivision (a) to the Department of Housing and Community Development within 60 days after adoption. After adoption of an ordinance, the department may submit written findings to the local agency as to whether the ordinance complies with this section.
(2) (A) If the department finds that the local agency’s ordinance does not comply with this section, the department shall notify the local agency and shall provide the local agency with a reasonable time, no longer than 30 days, to respond to the findings before taking any other action authorized by this section.

Note: This statement has been included in most housing element reviews, but most cities, including Atherton, have not actually received any comments. 32 5 Land Use Controls: The element must identify and analyze all relevant land use controls impacts as potential
constraints on a variety of housing types. The analysis should analyze land use controls independently and
cumulatively with other land use controls. The analysis should specifically address requirements related to parking, heights, lot coverage and allowable density ranges. The analysis should address any impacts on cost, supply,
housing choice, affordability, timing, approval certainty and ability to achieve maximum densities. For example, the
element should describe allowed uses and typical densities in the PFS zone. In addition, the element notes that zones include a 34-foot height restriction, the element should clarify whether three stories are allowed in zones that allow Government Code Section 66583(a)(5):
"An assessment of housing needs and an inventory of resources and constraints relevant to the meeting of these needs. The assessment and inventory shall include…[a]n analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, local processing and permit procedures, and any locally adopted ordinances that directly impact the cost and supply of residential development.

ATTACHMENT 3
# Comment Statutory Authority
multifamily or add a program to address the constraint. The required setbacks and maximum lot coverage requirements should also be analyzed as a constraint in the PFS zone.

Lastly, the element states that low allowable densities are a constraint on housing; the element should include a
program to mitigate the identified constraint.

The analysis shall also demonstrate local efforts to remove governmental constraints that hinder the locality from meeting its share of the regional housing need in accordance with Section 65584 and from meeting the need for housing for persons with disabilities, supportive housing, transitional housing, and emergency shelters identified pursuant to paragraph (7)." 33 Zoning Fees and Transparency: The element must list all fees and clarify its compliance with new transparency
requirements for posting all zoning and development
standards, and fees for each parcel on the jurisdiction’s website pursuant to Government Code section
65940.1(a)(1).

Government Code Section 66583(a)(5):
"An assessment of housing needs and an inventory of resources and constraints relevant to the meeting of these needs. The assessment and inventory shall include…[a]n analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, …."
Government Code Section 65940.1(a)(1):
(a) (1) A city, county, or special district that has an internet website shall make all of the following available on its internet website, as applicable:
(A) (i) A current schedule of fees, exactions, and affordability requirements imposed by that city, county, or special district, including any dependent special districts, as defined in Section 56032.5, of the city or county applicable to a proposed housing development project. (ii) The city, county, or special district shall present the information described in clause (i) in a manner that clearly identifies the fees, exactions, and affordability requirements that apply to each parcel and the fees that apply to each new water and sewer utility connection.

ATTACHMENT 3
# Comment Statutory Authority
(iii) The city, county, or special district shall post a written fee schedule or a link directly to the written fee schedule on its internet website.
(B) All zoning ordinances and development standards adopted by the city or county presenting the information, which shall specify the zoning, design, and development standards that apply to each parcel. (C) The list required to be compiled pursuant to Section 65940 by the city or county presenting the information.
(D) The current and five previous annual fee reports or the current and five previous annual financial reports, that were required pursuant to subdivision (b) of Section 66006 and subdivision (d) of Section 66013. (E) An archive of impact fee nexus studies, cost of service studies, or equivalent, conducted by that city, county, or special district on or after January 1, 2018. For purposes of this subparagraph, “cost of service study” means the data provided to the public pursuant to subdivision (a) of Section 66016.
34 Fees and Exaction: While the element provides a
cumulative analysis of fees for single family developments, it should also provide this analysis for multifamily
developments. In addition, the element should list all the various planning and impact fees associated with
development, including but not limited to general plan
amendments, zone changes, site plan or master plans,
specific plans, environmental fees, and water/sewer fees.

Lastly, the element should analyze the proportion of total fees and the proportion to the development costs of both single family and multifamily housing.

Government Code Section 66583(a)(5):
"An assessment of housing needs and an inventory of resources and constraints relevant to the meeting of these needs. The assessment and inventory shall include…[a]n analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, …”
35 Local Processing and Permit Procedures: While the
element describes some of the use permit procedures, it must further describe and analyze the Town’s permit
processing and approval procedures by zone and housing
type. The analysis must evaluate the processing and permit Government Code Section 66583(a)(5):
"An assessment of housing needs and an inventory of resources and constraints relevant to the meeting of these needs. The assessment and inventory shall include…[a]n analysis of potential and actual governmental constraints upon ATTACHMENT 3
# Comment Statutory Authority
procedures’ impacts as potential constraints on housing supply and affordability. For example, the element should clarify whether design review is required. In addition, the element must describe the CUP findings and procedures as well as describe master plan review requirements for
multifamily development and analyze these as constraints on housing development. Based on the outcomes of the
analysis, the element should add or modify programs to
streamline approval of multifamily housing and promote
approval certainty.
the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, local processing and permit procedures, and any locally adopted ordinances that directly impact the cost and supply of residential development.

The analysis shall also demonstrate local efforts to remove governmental constraints that hinder the locality from meeting its share of the regional housing need in accordance with Section 65584 …."
36 Local Ordinances: The element must analyze any locally adopted ordinances that directly impacts the cost and
supply of residential development. While the element states that the Town has a short-term rental ordinance, it should be analyzed for constraints on housing development.

Government Code Section 66583(a)(5):
"An assessment of housing needs and an inventory of resources and constraints relevant to the meeting of these needs. The assessment and inventory shall include…[a]n analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, local processing and permit procedures, and any locally adopted ordinances that directly impact the cost and supply of residential development. ….."
37 Streamlining Provisions: The element must clarify whether the Town has procedures in place consistent with
streamlining procedures pursuant to Government Code
section 65913.4 and include programs as appropriate.

Government Code Section 66583(a)(5):
"An assessment of housing needs and an inventory of resources and constraints relevant to the meeting of these needs. The assessment and inventory shall include…[a]n analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, local processing and permit procedures, …." ATTACHMENT 3
# Comment Statutory Authority
NOTE: This comment states that the Town must develop procedures to process an SB 35 application. The statute is too long to copy here. In addition, currently the Town is not subject to SB 35 streamlining. 38 Constraints on Housing for Persons with Disabilities: The element must include an analysis of zoning, development standards, building codes, and process and permit
procedures as potential constraints on housing for persons with disabilities. For example, the element must describe the findings and approval procedure for the Town’s
Reasonable Accommodation procedure. In addition, the
element must describe and analyze how group homes for
seven or more are allowed within the Town and add
programs as appropriate. For your information, zoning
should simply implement a barrier-free definition of family instead of subjecting, potentially persons with disabilities, to special regulations such as the number of persons,
population types and licenses.

These housing types should not be excluded from
residential zones, most notably low- density zones, which can constrain the availability of housing choices for persons with disabilities. Requiring these housing types to obtain a special use or CUP could potentially subject housing for persons with disabilities to higher discretionary exceptions processes and standards where an applicant must, for
example, demonstrate compatibility with the neighborhood, unlike other residential uses. The element should add or modify programs to address the constraint as appropriate.

Government Code Section 66583(a)(5):
"An assessment of housing needs and an inventory of resources and constraints relevant to the meeting of these needs. The assessment and inventory shall include…[a]n analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, local processing and permit procedures, and any locally adopted ordinances that directly impact the cost and supply of residential development.

The analysis shall also demonstrate local efforts to remove governmental constraints that hinder the locality from meeting its share of the regional housing need in accordance with Section 65584 and from meeting the need for housing for persons with disabilities, supportive housing, transitional housing, and emergency shelters identified pursuant to paragraph (7)." Government Code Section 66583(c)(3):
“Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities.” Government Code Section 65583(c)(5):
“Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected by the California Fair ATTACHMENT 3
# Comment Statutory Authority
Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2), Section 65008, and any other state and federal fair housing and planning law.”
39 6 Availability of Financing: The element must describe the availability of financing, including private financing and government assistance programs, is generally available in the community.

Government Code Section 65583(a)(6):
" An assessment of housing needs and an inventory of resources and constraints relevant to the meeting of these needs. The assessment and inventory shall include…[a]n analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the availability of financing, …” 40 Approval Time and Requests for Lesser Densities: The element must include analysis of requests to develop
housing at densities below those identified, the length of time between receiving approval for a housing
development and submittal of an application for building permits. The element must address any hinderance on the construction of a locality’s share of the regional housing need.

Government Code Section 65583(a)(6):
" An assessment of housing needs and an inventory of resources and constraints relevant to the meeting of these needs. The assessment and inventory shall include…[a]n analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the availability of financing, the price of land, the cost of construction, the requests to develop housing at densities below those anticipated in the analysis required by subdivision (c) of Section 65583.2, and the length of time between receiving approval for a housing development and submittal of an application for building permits for that housing development that hinder the construction of a locality’s share of the regional housing need in accordance with Section 65584. The analysis shall also demonstrate local efforts to remove nongovernmental constraints that create a gap between the locality’s planning for the development of housing for all income levels and the construction of that housing.”
41 7 Special Needs: While the element quantifies the Town’s special needs populations, it must also analyze their
special housing needs. For a complete analysis of each
population group, the element should discuss challenges faced by the population, the existing resources to meet those needs (e.g., availability senior housing units, # of large units, # of deed restricted units, etc.), an assessment of any gaps in resources, and proposed policies, programs, and funding to help address those gaps. In addition, the element must quantify and analyze the number of large
households, elderly persons, and persons experiencing
Government Code Section 65583(a)(7):
"The assessment and inventory shall include …[a]n analysis of any special housing needs, such as those of the elderly; persons with disabilities, including a developmental disability, as defined in Section 4512 of the Welfare and Institutions Code; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. The need for emergency shelter shall be assessed based on the capacity necessary to accommodate the most recent homeless point-in-time count conducted before ATTACHMENT 3
# Comment Statutory Authority
homelessness in the Town. the start of the planning period, the need for emergency shelter based on number of beds available on a year-round and seasonal basis, the number of shelter beds that go unused on an average monthly basis within a one-year period, and the percentage of those in emergency shelters that move to permanent housing solutions. …An analysis of special housing needs by a city or county may include an analysis of the need for frequent user coordinated care housing services. "
42 8 The element must include analysis of energy conservation opportunities in residential development. The analysis
should facilitate the adoption of housing element policies and programs. For example, programs could provide
incentives to promote higher density housing along transit, encourage green building techniques and materials in new construction and remodels, promote energy audits and
participation in utility conservation programs, and facilitate energy conserving retrofits upon resale of homes.

Government Code Section 65583(a)(8):
"The assessment and inventory shall include…[a]n analysis of opportunities for energy conservation with respect to residential development. Cities and counties are encouraged to include weatherization and energy efficiency improvements as part of publicly subsidized housing rehabilitation projects.

This may include energy efficiency measures that encompass the building envelope, its heating and cooling systems, and its electrical system." 43 C1 To have a beneficial impact in the planning period and address the goals of the housing element, programs must be revised with discrete timelines (e.g., at least annually or month and year) or timeframes earlier in the planning
period. Additionally, programs should include specific
commitment and actions toward beneficial impacts or
housing outcomes. Program language such as “discuss”,
“review”, “develop” and “explore” should be complemented or replaced with commitment such as adopt, pursue, apply or identify. Programs to be revised include the following:
• Program 3.814 (Adoption of an Inclusionary Zoning
Ordinance): The element should include additional
information on the inclusionary fee and include a specific date of implementation.
• Program 3.815 (Conservation and Rehabilitation of Existing Units): The program should specify what actions will be taken and clarify how the Town will assist property owners. • Program 3.821 (Seniors): The program should include
outreach for the existing programs listed as well as include specific timing for implementation.
• Program 3.822 (Disabled and Developmentally Delayed
Persons): The program should include proactive outreach Government Code Section 65583(c)
"The element shall contain…[a] program that sets forth a schedule of actions during the planning period, each with a timeline for implementation, that may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the housing element through the administration of land use and development controls, the provision of regulatory concessions and incentives, the utilization of appropriate federal and state financing and subsidy programs when available, and the utilization of moneys in a low- and moderateincome housing fund of an agency if the locality has established a redevelopment project area pursuant to the Community Redevelopment Law (Division 24 (commencing with Section 33000) of the Health and Safety Code)…."
ATTACHMENT 3
# Comment Statutory Authority
and specific timing for implementation.
• Program 3.823 (Equal Housing Opportunity): The program should include implementation timing for each action listed as well as how often outreach will occur during the planning period.
• Programs 3.824 (Emergency Shelters, Transitional and
Supportive Housing) and 3.831 (Energy Conservation): The programs must include clear actions for implementation as well as specific timing.
• Program 3.841 (Shared Housing): The program should be revised to include specific timing, identify a responsible party, funding, and objective. In addition, the program should include proactive outreach and describe how the
Town will provide the identified support.
• Program 3.842 (Housing Compliance and Monitoring): The program should be revised with specific commitment
beyond “consider” for the identified actions. In addition, the program should clarify the action being taken and include specific timing for implementation.
44 2
As noted in Finding B4, the element does not include a
complete site analysis; therefore, the adequacy of sites and zoning were not established. Based on the results of a
complete sites inventory and analysis, the Town may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types.

In addition, the element should be revised as follows:

Program 3.813 (Multifamily Housing Development on
School and other Properties): This program should be
revised to include specific incentives for implementation and clarify what actions will be completed as part of the program. In addition, the element must commit to the
rezones and discuss the densities that will be allowed with the rezone. The program currently references timing
associated with adoption of the element. The Town should be aware that if the adoption is not complete by the start of the planning period (January 31, 2023), the Town will be subject to right requirements pursuant to Government Code Government Code Section 65583(c)(1)(A):
"Where the inventory of sites, pursuant to paragraph (3) of subdivision (a), does not identify adequate sites to accommodate the need for groups of all household income levels pursuant to Section 65584, rezoning of those sites, including adoption of minimum density and development standards, for jurisdictions with an eight-year housing element planning period pursuant to Section 65588, shall be completed no later than three years after either the date the housing element is adopted pursuant to subdivision (f) of Section 65585 or the date that is 90 days after receipt of comments from the department pursuant to subdivision (b) of Section 65585, whichever is earlier, unless the deadline is extended pursuant to subdivision (f). Notwithstanding the foregoing, for a local government that fails to adopt a housing element that the department has found to be in substantial compliance with this article within 120 days of the statutory deadline in Section 65588 for adoption of the housing element, rezoning of those sites, including adoption of minimum density and ATTACHMENT 3
# Comment Statutory Authority
section 65583.2, subdivisions (h) and (i). development standards, shall be completed no later than one year from the statutory deadline in Section 65588 for adoption of the housing element." 45 Shortfall of Adequate Sites: If the element does not identify adequate sites to accommodate the regional housing need for lower-income households, it must include a program(s) to identify sites with appropriate zoning to accommodate the regional housing need within the planning period. The program should identify the shortfall by income group,
acreage, allowable densities, appropriate development
standards and meet all by right requirements pursuant to Government Code section 65583.2, subdivisions (h) and
(i), including but not limited to permitting multifamily uses by-right for developments in which 20 percent or more of the units are affordable to lower income households.

Government Code Section 65583(c)(1)(B):
"Where the inventory of sites, pursuant to paragraph (3) of subdivision (a), does not identify adequate sites to accommodate the need for groups of all household income levels pursuant to Section 65584, the program shall identify sites that can be developed for housing within the planning period pursuant to subdivision (h) of Section 65583.2. The identification of sites shall include all components specified in Section 65583.2."
Government Code Sections 65583.2(h) and (i):
“(h) The program required by subparagraph (A) of paragraph (1) of subdivision (c) of Section 65583 shall accommodate 100 percent of the need for housing for very low and low-income households allocated pursuant to Section 65584 for which site capacity has not been identified in the inventory of sites pursuant to paragraph (3) of subdivision (a) on sites that shall be zoned to permit owneroccupied and rental multifamily residential use by right for developments in which at least 20 percent of the units are affordable to lower income households during the planning period. These sites shall be zoned with minimum density and development standards that permit at least 16 units per site at a density of at least 16 units per acre in jurisdictions described in clause (i) of subparagraph (B) of paragraph (3) of subdivision (c), shall be at least 20 units per acre in jurisdictions described in clauses (iii) and (iv) of subparagraph (B) of paragraph (3) of subdivision (c) and shall meet the standards set forth in subparagraph (B) of paragraph (5) of subdivision (b). At least 50 percent of the very low and low-income housing need shall be accommodated on sites designated for residential use and for which nonresidential uses or mixed uses are not permitted, except that a city or county may accommodate all of the very low and low-income housing need on sites designated for mixed use if ATTACHMENT 3
# Comment Statutory Authority
those sites allow 100 percent residential use and require that residential use occupy 50 percent of the total floor area of a mixed-use project. “(i) For purposes of this section and Section 65583, the phrase “use by right” shall mean that the local government’s review of the owner-occupied or multifamily residential use may not require a conditional use permit, planned unit development permit, or other discretionary local government review or approval that would constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. Any subdivision of the sites shall be subject to all laws, including, but not limited to, the local government ordinance implementing the Subdivision Map Act. A local ordinance may provide that “use by right” does not exempt the use from design review. However, that design review shall not constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. Use by right for all rental multifamily residential housing shall be provided in accordance with subdivision (f) of Section 65589.5.” 46 Replacement Housing Requirements: The housing element must include a program to provide replacement housing.
(Gov. Code, § 65583.2, subd. (g)(3).) The replacement
housing program must adhere to the same requirements as set forth in Government Code section 65915, subdivision (c), paragraph (3).

Government Code Section 65582.3(g)(3):
"Notwithstanding any other law, and in addition to the requirements in paragraphs (1) and (2), sites that currently have residential uses, or within the past five years have had residential uses that have been vacated or demolished, that are or were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of low or very low income, subject to any other form of rent or price control through a public entity’s valid exercise of its police power, or occupied by low- or very low income households, shall be subject to a policy requiring the replacement of all those units affordable to the same or lower income level as a condition of any development on the site. Replacement requirements shall be consistent with those set forth in paragraph (3) of subdivision (c) of Section 65915." 47 3 The element must include a program(s) with specific actions and timelines to assist in the development of
housing for extremely low-income households. The
program(s) could commit the Town to adopting priority
processing, granting fee waivers or deferrals, modifying development standards, granting concessions and
incentives for housing developments that include units
Government Code Section 65583(c)(1):
"A program that sets forth a schedule of actions during the planning period, each with a timeline for implementation, that may recognize that certain programs are ongoing, such that there will be beneficial impacts of the ATTACHMENT 3
# Comment Statutory Authority
affordable to extremely low-income households; assisting, supporting or pursuing funding applications; and outreach and coordination with affordable housing developers.
programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the housing element through the administration of land use and development controls, the provision of regulatory concessions and incentives, the utilization of appropriate federal and state financing and subsidy programs when available, and the utilization of moneys in a low- and moderate-income housing fund of an agency if the locality has established a redevelopment project area pursuant to the Community Redevelopment Law (Division 24 (commencing with Section 33000) of the Health and Safety Code). In order to make adequate provision for the housing needs of all economic segments of the community…"
Government Code Section 65583(c)(2):
“Assist in the development of adequate housing to meet the needs of extremely low, very low, low-, and moderate-income households.” 48 In addition, the element must also include a program(s), as appropriate, to assist in the development of housing for all special needs households (e.g., elderly, homeless,
farmworkers, persons with disabilities, female-headed
households). Program actions could include proactive
outreach and assistance to non-profit service providers and developers, prioritizing some funding for housing
developments affordable to special needs households and offering financial incentives or regulatory concessions to encourage a variety of housing types.

Government Code Section 65583(c)(1):
"A program that sets forth a schedule of actions during the planning period, each with a timeline for implementation, that may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the housing element through the administration of land use and development controls, the provision of regulatory concessions and incentives, the utilization of appropriate federal and state financing and subsidy programs when available, and the utilization of moneys in a low- and moderate-income housing fund of an agency if the locality has established a redevelopment project area pursuant to the Community Redevelopment Law (Division 24 (commencing with Section 33000) of the Health and Safety Code). In order to make adequate provision for the housing needs of all economic segments of the community…"
Government Code Section 66583(c)(3):

ATTACHMENT 3
# Comment Statutory Authority
“Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities.” Government Code Section 65583(c)(5):
“Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2), Section 65008, and any other state and federal fair housing and planning law.”
49 4 As noted in Findings B5 and B6, the element requires a complete analysis of potential governmental and nongovernmental constraints. Depending upon the results of that analysis, the Town may need to revise or add
programs and address and remove or mitigate any
identified constraints. In addition, the element should be revised as follows:

See citations below.
50 5 The element must include actions that promote AFFH opportunities as stated in Finding B1. For example, the element could include a program committing to implement Government Code section 8899.50, subdivision (b) which
requires the Town to administer its programs and activities relating to housing and community development in a
manner to AFFH and take no action that is materially
inconsistent with its obligation to AFFH. Programs should address enhancing housing mobility strategies;
encouraging development of new affordable housing in
high resource areas; improving place-based strategies to encourage community conservation and revitalization,
including preservation of existing affordable housing; and Government Code Section 65583(c)(10)(A)(iv) –(v):
"In order to make adequate provision for the housing needs of all economic segments of the community, the program shall include…[a]n identification of the jurisdiction’s fair housing priorities and goals, giving highest priority to those factors identified in clause (iii) that limit or deny fair housing choice or access to opportunity, or negatively impact fair housing or civil rights compliance, and identifying the metrics and milestones for determining what fair housing results will be achieved" and "[s]trategies and actions to implement those priorities and goals, which may include, but are not limited to, enhancing mobility strategies and encouraging development of new affordable housing in ATTACHMENT 3
# Comment Statutory Authority
protecting existing residents from displacement. The
programs should also include specific commitment,
milestones, geographic targeting and metrics or numerical targets for meaningful outcomes and fair housing results. areas of opportunity, as well as place-based strategies to encourage community revitalization, including preservation of existing affordable housing, and protecting existing residents from displacement."
51 6 Program 3.812 (New Construction of Affordable Accessory Dwelling Units): The program must clarify the actions that will be implemented to incentivize ADUs beyond “consider”.

In addition, the program should include implementation
timing for each specific action. Lastly, as mentioned above, the Town should adopt a program to comply with state ADU law, monitor production and affordability of ADUs
throughout the planning period and identify additional
actions as needed.

Government Code Section 65583(c)(7):
"In order to make adequate provision for the housing needs of all economic segments of the community, the program shall…[d]evelop a plan that incentivizes and promotes the creation of accessory dwelling units that can be offered at affordable rent, as defined in Section 50053 of the Health and Safety Code, for very low, low-, or moderate-income households. For purposes of this paragraph, 'accessory dwelling units' has the same meaning as 'accessory dwelling unit' as defined in paragraph (4) of subdivision (i) of Section 65852.2." 52 D Establish the number of housing units, by income level, that can be constructed, rehabilitated, and conserved over a five-year time frame. (Gov. Code, § 65583, subd. (b)(1 & 2).)
The element did not address this requirement. The element must include quantified objectives for new construction, rehabilitation, and conservation by income group, including extremely low-income households. Please see the Building Blocks for additional information.

Government Code Section 65583(b):
(1) A statement of the community’s goals, quantified objectives, and policies relative to affirmatively furthering fair housing and to the maintenance, preservation, improvement, and development of housing.
(2) It is recognized that the total housing needs identified pursuant to subdivision (a) may exceed available resources and the community’s ability to satisfy this need within the content of the general plan requirements outlined in Article 5 (commencing with Section 65300). Under these circumstances, the quantified objectives need not be identical to the total housing needs. The quantified objectives shall establish the maximum number of housing units by income category, including extremely low income, that can be constructed, rehabilitated, and conserved over a five-year time period." 53 E While the element includes a general summary of the public participation process, the element should also
demonstrate diligent efforts were made to involve all
economic segments of the community in the development
of the housing element. The element could describe the
efforts to circulate the housing element among low- and moderate-income households and organizations that
represent them and to involve such groups and persons in Government Code Section 65583(c)(9):
" In order to make adequate provision for the housing needs of all economic segments of the community, the program shall…[i]nclude a diligent effort by the local government to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort."
ATTACHMENT 3
# Comment Statutory Authority
the element throughout the process. In addition, the
element should also summarize the public comments and
describe how they were considered and incorporated into the element. Lastly, the element should describe whether translation services were available during the process. 54 F The Housing Element shall describe the means by which consistency will be achieved with other general plan
elements and community goals. (Gov. Code, § 65583,
subd. (c)(7).)
The element must describe how consistency was achieved
and how it will be maintained during the planning period.

For example, the element could include a program to
conduct an internal consistency review of the General Plan as part of the annual General Plan implementation report required by Government Code section 65400. The annual
report can also assist future updates of the housing
element.

Government Code Section 65583(c)(8):
"In order to make adequate provision for the housing needs of all economic segments of the community, the program shall…[i]nclude an identification of the agencies and officials responsible for the implementation of various actions and the means by which consistency will be achieved with other general plan elements and community goals."
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
October 31, 2022
George Rodericks, Town Manager
Town of Atherton
80 Fair Oaks Lane, 1st Floor
Atherton, CA 94027
Dear George Rodericks
RE: Town of Atherton’s 6th Cycle (2023-2031) Draft Housing Element Thank you for submitting the Town of Atherton (Town) draft housing element update received for review on August 2, 2022. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. Our review was facilitated by a conversation on October 14, 2022 with yourself and consultant Lisa Costa Sanders. In addition, HCD considered comments from Wesley Arrington, YIMBY Law, Greenbelt Alliance, Campaign for Fair Housing Elements, and Housing Leadership Council, pursuant to Government Code section 65585, subdivision (c).

The draft element addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code).

The enclosed Appendix describes the revisions needed to comply with State Housing Element Law.

Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the Town should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate.

Please be aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD.

For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government fails to adopt a compliant housing element within 120 days of the statutory deadline (January 31, 2023), then any rezoning to make prior identified sites available or accommodate the regional housing needs allocation (RHNA), including for lower-income households, shall be completed no later than one year from the statutory ATTACHMENT 4
George Rodericks, Town Manager