Atherton City Council
November 1, 2023

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parcels that may be acquired by the school in the future would likely be rezoned for 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 to accommodate faculty housing which would be allowed under the new proposed PFS Zoning at 20 units per acre. While the school has a need for faculty and staff housing, 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 critical 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. All public school sites are shown within the PFS Zone on the following Housing Sites Map. Private school sites are circled.

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.

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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 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. However, this development is not currently planned within the current Housing Element cycle.

Underutilized Parcels (Further Subdivision and/or SB 9 Subdivision) Sixty-seven parcels listed on the table 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. Seven of these parcels are vacant and have the capacity to yield 8 new dwellings for above moderate-income households if subdivided and developed in accordance with existing zoning regulations or to yield 16 new dwellings for above moderate-income households if subdivided and developed in accordance with SB 9 regulations.

Sixty of these parcels are developed with one single-family house. Those parcels have the capacity to yield 91 net27 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 60 parcels could be split further, with each parcel further allowed development capacity of 2-3 net new 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 yield a total of 91-242 dwelling units.

Including vacant properties, this puts the potential development capacity for the single-family properties listed on the sites inventory at up to 258 units. The Town projects it will net 10 new above moderate income units from the development of vacant parcels and another 48 above moderate units from traditional and SB 9 lot splits.

Complete Electronic Housing Element Site Inventory Form Included as Appendix 5 27 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 zone28.

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. However, none of the Town is in a High Fire Hazard Zone, as defined. 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.

4. Areas Subject to Seismic Activity
San Mateo County is in the vicinity of several known active and potentially active earthquake faults. These include the San Andreas and the Hayward faults. All 28 County of San Mateo Geotechnical Hazard Synthesis Map

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properties in Atherton have an equal exposure to seismic activity. 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.

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.

All the housing opportunity sites proposed in this Housing Element are on existing developed property connected or adjacent to all city services. Redevelopment of these infill sites may require infrastructure improvements by the city or the developer to upgrade aging infrastructure or to increase capacity. The provision of on-site improvements, such as streets, curbs, gutters, sidewalks, landscaping, utility undergrounding, drainage, water, and sewer infrastructure, are standard conditions of development approval and have not been barriers to housing development in the past. If off-site infrastructure improvements are required, these are the responsibility of the developer if the upgrade is not currently in the Capital Improvement Program.

Water is supplied throughout the town by the Bear Gulch District of the California Water Service. Most of the water provided (93%) is purchased or imported through the San Francisco Public Utilities Commission, with a remaining 7% supplied by Bear Gulch Reservoir. Cal Water’s 2020 Urban Water Management Plan provides detail on available capacity and allocations for each district, with sufficient planned volume through 2045. While planned water capacity is already sufficient to accommodate the town’s RHNA, the town also anticipates greater efficiency of water use resulting from the type of new development proposed. Atherton residences, compared to regional and state averages, use an inordinate amount of water, primarily due to landscaping. As properties are subdivided through SB 9 to create smaller lots, or new units are created with ADUs, the primary source of local water demand will not be increased. It is reasonable to project that new development of smaller units using ADUs and lot splits will serve to reduce average household water consumption. In addition, Cal Water’s management plan projects water consumption for singlePage 196 of 267 Town of Atherton 2023-2031 Housing Element – DRAFT 78
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family residences to decrease over time due to improved appliance standards, plumbing codes, and conservation programs.29
Most Atherton residents receive sewer services from West Bay Sanitary District, with a portion of the town served by the Fair Oaks Sanitation District operated by the County of San Mateo. Capacity for new development is generally analyzed on a case-by-case basis. Improvements to sewer infrastructure to accommodate development are incumbent on the developer and have not been a barrier to projects in the past.

Per Chapter 727, Statues of 2004 (SB 1087), upon completion of an amended or adopted Housing Element, a local government is responsible for immediately distributing a copy of the element to area water and sewer providers. In addition, water and sewer providers must grant priority for service allocations to proposed developments that include housing units affordable to lower-income households.

Chapter 727 was enacted to improve the effectiveness of the law in facilitating housing development for lower-income families and workers. To comply with SB 1087, upon adoption, this Housing Element will be forwarded to the city’s Public Works Department.

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). Using HCDs approved methodology, the Town assumes that 50 percent of the very low-income unit (47 of the 94) will be required to meet the needs of extremely low-income households.

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-, low- moderate- and above moderateincome categories. It is projected that the number of ADUs produced in the lower income levels would be 168 units; 112 very low to low income and 56 moderateincome units. The zoning code would be amended to accommodate construction of these ADUs with increased height limits, removal of occupancy restriction on pool houses and guest houses and permit two ADUs per property.

The Town's distributions of project ADUs by income category are largely based on data contained in ABAG’s technical assistance paper issued September 8, 2021 entitled, “Affordability of Accessory Dwelling Units.’ The paper was prepared based on a survey conducted by the Center for Community Innovation at UC Berkeley and utilized HCD’s affordability calculator to determine the appropriate income category. 29 https://www.calwater.com/docs/uwmp2020/MPS_2020_UWMP_FINAL.pdf

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Atherton is a well-established community with limited land availability, very high housing costs and limited public funding for housing programs. However, the existing land patterns and housing types are very conducive to a successful ADU program.

Minimum lot sizes are larger than average in Atherton thereby providing more opportunities for the construction of ADUs.

In the past two years, a total of 48 new single-family homes were built in Atherton and during this same time frame, there were 44 new ADUs, 3 JADUs, and 7 ADUconversions. The Town believes that this nearly one to one ratio exists because the Town recently modified its regulations to encourage the development of ADUs. In addition, a recent community survey with nearly 18% of households responding indicates an interest by over 200 property owners to construct an ADU on their property over the next 8 years. Accordingly, the Town believes that the construction rate of 35 new ADUs per year over the next 8 years is achievable.

While single-family homes and owner-occupied housing with four or fewer units are typically exempt from the federal Fair Housing Act, the California Fair Housing and Employment Act (FEHA) applies to any residence of one or more households that is being offered for rent or sale. If a homeowner occupies their home and rents out a portion of their home to a tenant, FEHA does not apply so long as only one tenant can live in the home with the owner. However, ADUs are considered separate units from the primary dwelling unit on the parcel and are therefore covered by FEHA. Owners of ADUs cannot discriminate against tenants or prospective tenants because of their status as a member of a protected class.

A second source of housing affordable to lower income households is construction of new multifamily housing on private property. One property has been identified for rezoning to multifamily zoning with density at 10 units per acre. The Town will also adopt an Inclusionary Zoning Ordinance that would require a minimum of 20% of the multifamily units to be affordable to lower-income households. It is projected that 12 new housing units affordable to above moderate-income households will be constructed on these properties during the 6th RHNA cycle, and 4 units would be constructed affordable to lower-income households pursuant to the Inclusionary Zoning ordinance. In addition to providing housing opportunities to lower income households, the Town will encourage the developer to include new accessible units to provide housing resources for disabled households.

A third source of housing affordable to lower income households is construction of multifamily housing on 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 will amend the zoning code to accommodate the new housing development by rezoning the properties to permit 40 units per acre at Menlo College Site 1, 20 units per acre at Menlo College site 2 and 20 units per acre at two Menlo School sites. The zoning will also be amended to increase the height limit and reduce setbacks. The Town projects construction of 80 units of multifamily housing units at the private school campuses during the 6th RHNA cycle; 40 units for very-low-income and low income

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households, and 20 units for moderate-income households. These properties would also be subject to the Town’s Inclusionary ordinance, although the schools have expressed need to maintain a higher level of affordability to address their staff housing needs.

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 review 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.

Currently, 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.

The Town will amend the zoning code to allow development of multifamily rental housing by right at 20 units per acre or more on the private school sites and adopt a new multifamily overlay zoning district, RM 10 on one private property where there is developer interest to create multifamily housing. The rezoning to allow multifamily housing by right within the PFS zone will remove the private school master plan and use permit process and will streamline the review and approval process for new multifamily housing. Further, the creation of a new RM 10 zoning overlay district will permit multifamily housing by right subject to objective design guidelines. Adding a new multifamily zoning district in addition to the upzoning at the private schools will encourage and facilitate a variety of housing types available to the community including lower income and accessible units. The creation of these new zoning districts is a substantial step in affirmatively furthering fair housing in Atherton and providing a diversity of housing options for the community.

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. This site is strategically located in close proximity to transit and services. The site includes the Townpost office, Town hall and library. The library offers many services including free bike and computer loan program. The development standards for an emergency shelter include 34’ height limit, one parking space per bed and the facility is required to be ADA accessible.

3.440 Identification of Adequate Sites for Transitional and Supportive Housing

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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. In addition, the Town has decided to develop a Housing Impact Fee that would be utilized by the Town to encourage and support the development of affordable housing opportunities in Town. The Housing Impact Fee would be collected and segregated by law for its intended purpose.

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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 town. 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 HE-4 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 required. New single family residential development permits are processed ministerially and most are submitted concurrently for zoning clearing to the Planning Department and building permit issuance to the Building Department which assists in greatly expediting the permitting process. Consistent 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 issuance of a Use Permit by the Planning Commission, but following such approval for

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use, could subsequently follow the same concurrent Planning and Building Department development process as described above for single family residential uses. The Town will amend the Zoning Code to alter this process to allow development opportunity at 20 units per acre by right for multifamily residential development on the school properties. In addition, a portion of Menlo College’s parcel will be zoned for 40 units per acre to allow a higher density development to occur. Further, the Town will create a new multifamily zoning district, RM 10 that will permit 10 units per acre multifamily residential development by right subject to objective design standards and inclusionary housing requirements. This is a substantial step in affirmatively furthering fair housing in Atherton and providing a diversity of housing options for the community.

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. The consequence of zoning changes has been a significant acceleration in the production of ADUs. SInce these changes have been implemented, approximately 100% of all new single-family homes (averaging 20-25 per year) include a new ADU.

Attached ADUs (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-4: 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

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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 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 potential 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 single family 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. As indicated above, the Town will amend the Zoning Code to include two new multifamily zoning districts to provide additional housing opportunities and affirmatively further fair housing. The new zoning districts will allow development up to 40 feet in height with adequate setbacks to accommodate the development and subject to objective design standards.

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.

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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 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
To assist jurisdictions in meeting requirements for analysis of fees and permit processing, 21 Elements released a survey to all jurisdictions in San Mateo County. The survey asked about potential government constraints to housing, including impact fees, entitlement fees, building permit fees, and permit processing times. In conjunction with that survey, 21 Elements hired Century Urban, a San Francisco based real-estate consulting firm, to examine the cost of land and labor for new housing development in the County.

Combined, those two data sets provide a basis for a preliminary examination of constraints for jurisdictions in San Mateo County.

Participation in the 21 Elements government restraints survey was excellent, with 18 of 21 jurisdictions participating. While not all the respondents answered all the questions, the high overall participation results in a meaningful look at the landscape of government-imposed fees in San Mateo County. 21 Elements distributed the survey in November 2021 and accepted results through February 2022.

The survey asked jurisdictions to calculate fees for three hypothetical housing developments: a single-family house, a 10-unit apartment building, and a 100-unit apartment building.

Single-Family Home – Participants were asked to estimate fees for one of two, hypothetical single-family home developments:
● 2,600-square-foot house with 500-square-foot garage. The house is two stories tall with four bedrooms and two bathrooms. The house is constructed on an

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empty lot in an existing neighborhood and requires no significant grading or other complications.
● 5,000-square-foot house with 1,000-square-foot garage. House is two stories tall with four bedrooms and three bathrooms. The house is constructed on an empty lot in an existing neighborhood and requires no significant grading or other complications.

Atherton, along with Woodside, and Unincorporated San Mateo, chose to estimate fees for the larger house as more representative of the community.. All other respondents estimated fees for the smaller house. For purposes of comparison, all the data are presented in the same table, regardless of which size hypothetical house was chosen.

Small Multi-Family – Jurisdictions were asked to estimate the fees for a hypothetical development with 10 units with moderate complexity.

Large Multi-Family – Jurisdictions were asked to estimate fees for a 100-unit development.

The Atherton fees are estimated for the prototypical single-family project are shown in Table HE-5. As shown, Town entitlement fees are significantly lower than other communities due to the streamlined and efficient development review process currently practiced.

TABLE HE-5: FEES FOR A HYPOTHETICAL SINGLE-FAMILY HOME
Entitlement
Fees
Building Permit
Fees
Impact Fees
Other Fees Total
Atherton 1,520 13,363 0 1,058 $15,941
Brisbane 0 4,300 10,608 10,032 $24,940
Burlingame 3,645 49,500 16,280 0 $69,425
Colma 0 6,760 0 0 $6,760
Daly City 0 19,128 15,682 0 $24,202
East Palo Alto 6,342 6,606 51,717 39,576 $104,241

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Foster City 3,000 64,886 9,854 0 $67,886
Half Moon Bay 4,019 3,750 36,500 8,300 $52,569
Hillsborough 7,951 48,891 11,904 14,250 $71,092
Millbrae 7,397 -- 83,213 0 $97,756
Pacifica 11,000 10,803 11,922 0 $33,725
Portola Valley 15,954 30,753 0 6,216 $52,923
Redwood City 1,493 4,952 14,350 0 $20,795
San Bruno 5,000 28,000 25,209 0 $58,209
San Mateo 4,979 43,844 50,180 0 $99,003
South San
Francisco
1,490 476 54,944 0 $81,366
Unincorporated San
Mateo
420 28,013 7,996 0 $36,429
Woodside 1,980 35,497 33,480 0 $70,957
Source: 21 Elements.

The total fees per unit are compared to all San Mateo County jurisdictions below in Table HE5.1.

TABLE HE-5.1: TOTAL FEES PER UNIT COMPARISON: SAN MATEO COUNTY JURISDICTIONS (INCLUDES ENTITLEMENT, BUILDING PERMITS, AND IMPACT FEES)

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Single-Family Small Multi-Unit Large Multi-Unit
Atherton $15,941 No Data No Data
Brisbane $24,940 $11,678 No Data
Burlingame $69,425 $30,345 $23,229
Colma $6,760 $167,210* $16,795
Daly City $24,202 $32,558 $12,271
East Palo Alto $104,241 No Data $28,699
Foster City $67,886 $47,179 $11,288
Half Moon Bay $52,569 $16,974 No Data
Hillsborough $71,092 No Data No Data
Millbrae $97,756 $6,824 $55,186
Pacifica $33,725 $40,151 No Data
Portola Valley $52,923 No Data No Data
Redwood City $20,795 $18,537 $62,696
San Bruno $58,209 $72,148 $39,412
San Mateo $99,003 $133,658 $44,907
South San Francisco $81,366 $76,156 $32,471
Unincorporated San Mateo $36,429 $27,978 $10,012

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Woodside $70,957 $82,764 No Data
Source: 21 Elements.

Since Atherton currently does not currently have any multi-family projects there was no data to include. As part of this update, See Policy 3.813 for new Town programs addressing multifamily housing .

Total fees as a percentage of total development costs can be found in Table HE-5.2. Atherton’s fees are calculated to be 0% of total development cost which is among the lowest of the County.

TABLE HE-5.2: TOTAL FEES AS A PERCENTAGE OF TOTAL DEVELOPMENT COSTS Single-Family Small Multi-Unit Large Multi-Unit
Atherton 0% No Data No Data
Brisbane 1% 1% No Data
Burlingame 3% 4% 3%
Colma 0% 17% 2%
Daly City 1% 4% 2%
East Palo Alto 4% No Data 4%
Foster City 3% 6% 2%
Half Moon Bay 2% 2% No Data
Hillsborough 3% No Data No Data

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Millbrae 2% 8% 7%
Pacifica 1% 5% No Data
Portola Valley 1% No Data No Data
Redwood City 1% 2% 8%
San Bruno 2% 8% 5%
San Mateo 4% 14% 6%
South San Francisco 3% 9% 4%
Unincorporated San Mateo 1% 3% 1%
Woodside 2% 9% No Data
Note: The above table is calculated using average soft costs (including an average of jurisdiction charged fees) and average land costs for the county. A more precise determination of fees as a percentage of total development costs can be calculated using jurisdiction specific land costs and fees.

Source: 21 Elements.

Atherton’s fees per unit, including the percentage of total development costs and a comparison to the median of fees are shown in Table HE-5.3.

Table HE-5.3: SUMMARY OF ATHERTON FEES COMPARED TO MEDIAN Project Type Fees Per Unit Percentage of Total
Development Cost
Median of Fees for 21
Jurisdictions
Single Family $15,941 0% $55,566
Multi-Family in Small
Project
No data No data $36,355
Multi-Family in Large
Project
No data No data $28,699

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Development Impact Fees are one-time charges levied on new developments and serve as tools to mitigate the impacts of new development by funding a range of capital programs required to address needs related to that development, including transportation, parks, and utilities (such as water, sewer, and storm drain). Other than a park in lieu fee under the Quimby Act for subdivisions, the Town does not currently have any impact fees; however, projects that connect to either sewer district are charged fees and construction costs that are outside of the Town’s control.

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-7.1: 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

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Lot Line
Adjustment $1,629
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. The Town’s policy objectives propose to waive planning fees for new ADUs.

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 Elements30 revealed that a 5,000 square foot house built in Atherton would have construction fees of $16,941 and no entitlement or impact fees 30 21 Elements: Development Fees Survey Summary, April 2022

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(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 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 jurisdictions. Staff routinely provides first round plan review comments within 10-working days and follow-up comments within 5- working days.

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 turnaround 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

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currently has approximately 800 active permits and approximately 25-30 houses are demolished and replaced with new houses each year. While removal of the process 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 $7-$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. The Town will amend the Zoning Code to address the limitations on density with the creation of two new multifamily zoning districts, one at 20 units per acre and the other at 10 units per acre. This significant step will encourage development of affordable housing and provide more housing choices and opportunities for the community.

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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 a Town standard.

Should it be determined that the request is not at a staff-level 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 approved ministerially

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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 accommodation 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 accommodation 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 development standard in which an exception is requested, why the reasonable accommodation is being requested and a brief statement from the applicant’s doctor stating the person’s disability. To further reduce any potential constraints, 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. No changes to parking standards are required to address the needs of persons with disabilities because the Town does not impose any parking standards.

Atherton uses the 2022 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.

The Town will encourage developers to include accessible housing units in new multifamily housing developments.

3.520 Non-Governmental Constraints Analysis

3.521 Land Prices

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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 $7-$8 million dollars per acre and can only be acquired by purchase of a developed parcel or by subdividing the property, 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 91 new parcels that can be created by subdividing existing developed parcels.

3.522 Construction Costs31
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 $600/sf. For a more expensive, 5,000 square foot home, however, the construction costs can average $800-1,000/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.

3.523 Availability of Financing
The availability of capital to finance new residential development is a significant factor that can impact both the cost and supply of housing. Two types of capital are involved in the housing market: 1) capital used by developers for initial site preparation and construction and 2) capital for financing the purchase of units by homeowners and investors. Interest rates substantially impact home construction, purchase, and improvement costs. Fluctuation in interest rates can have a significant impact on costs for construction or purchase, as well as impact whether a potential buyer can qualify for a loan. Following several years of historically low interest rates, the expectation is that interest rates are likely to rise in 2022 and beyond.32 31 Century Urban LLC, Memo to Baird + Driskell, San Mateo and Santa Clara Counties Development Cost & San Mateo Unit Mix Research, April 7, 2022. 32

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Because interest rates are determined by national policies and economic conditions, there is little that local governments, including the Town, can do to affect the interest rates. In general, financing for both construction and long-term mortgages is available in San Mateo County, subject to normal underwriting standards.

Table 4-11 summarizes the total number of home loans applied for, approved (and originated), and denied within the San Jose-San Francisco-Oakland MSA. In 2020, a total of 97,147 applications for home loans were submitted within the MSA. Of these loan applications, over 66% were approved and originated while approximately 11% of applications were denied.

While there are many potential reasons for denial, this percentage of loan approvals and denials vary throughout the MSA by income group. As anticipated, there is a direct relationship between household incomes and home loan application approvals and denials. As depicted in Table HE-9 as household incomes rise, the percentage of home loans denied decreases and the percentage of loans approved increases. Similarly, as household income falls, the percentage of home loan applications denied increases and the percentage of loans approved decreases. This data suggests it is much more difficult for lower-income households in the MSA to obtain home loan financing than higher-income households. This difficulty has the potential to directly affect the production and rehabilitation of housing units serving lowerincome households, throughout the MSA.

TABLE HE-9 DISPOSITION OF APPLICATIONS BY INCOME OF APPLICANT 2020 Income Group Total Loan
Applications
Loans
Originated
Applications
Denied
Percentage
Denied
<50% MFI 6,876 3,095 1,924 28%
50-79% MFI 12,351 7,792 1,793 14.5%
80-99% MFI 5,051 3,371 543 10.7%
100-119% MFI 15,158 10,462 1,502 9.9%
>120% MFI 57,710 39,177 5,059 8.8%
TOTAL 97,147 63,897 10,821 11.1%
Most homes in Atherton are custom-built homes funded by individual households. Fluctuations in recent years due to the pandemic have caused caution among lenders and may have lasting effects on the availability of financing throughout this Housing Element planning period.

Financing for this type of construction is more difficult to obtain now that banks have increased their requirements. While financing is no more of a constraint in Atherton than in other 4 Kiplinger. Interest Rates: The Fed Gets Aggressive, April 14, 2022, https://www.kiplinger.com/economic-forecasts/interestrates#:~:text=Expect%20the%20Treasury%2010%2Dyear,from%204.2%25%20to%204.7%25.

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communities in the Bay Area, the availability of financing for developers under these economic conditions may pose a constraint on development outside of the Town’s control.

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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
Construction
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:

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 amendments as prescribed by

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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 throughout 2022, a total of 27 new single-family permits were issued and these permits included a total of 26 new ADUs, and 5 ADU conversions. This nearly one to one ratio is a direct correlation to the Town’s encouragement to produce ADUs. The total number of ADUs permitted and/or constructed between 2015 and 2022 (the last year with data available) was more than 125. This exceeded the Town’s RHNA allocation. 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.

Additionally, results from a recent Town-wide survey indicates significant support for the development of ADUs over the next 8 years showing a more than 200 property owner commitment to do so.

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 Department 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 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 moderateincome 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 and expanded for the 2023-2031 Planning Period.

3.630 Future Opportunities

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Despite the setbacks noted in the prior section, the Town continues to move forward on its goals and actions outlined in the prior cycle’s Housing Element. In addition, the trends and lessons learned from the prior cycle have been thoroughly analyzed and considered for effective incorporation in this Sixth Cycle Housing Element. These include:
● 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.
● Amendment of PFS zoning to permit multi family housing by right ● Creation of a new multifamily zoning district RM 10
● Adoption of a new affordable housing Inclusionary Ordinance 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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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 and adjustment to
encourage additional housing
development.

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
with 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
and amend the zoning code to
facilitate new housing development.

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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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
Senior households often experience a combination of factors that can make accessing or keeping affordable housing a challenge. They often live on fixed incomes and are more likely to have disabilities, chronic health conditions, and/or reduced mobility. Understanding how seniors might be cost-burdened is of particular importance due to their special housing needs, particularly for low-income seniors. People with disabilities can face additional housing challenges. Encompassing a broad group of individuals living with a variety of physical, cognitive, and sensory impairments, many people with disabilities live on fixed incomes and need specialized care, yet often rely on family members for assistance due to the high cost of care. Large family households often have special housing needs due to a lack of adequately sized affordable housing available. The higher costs required for homes with multiple bedrooms can result in larger families experiencing a disproportionate cost burden than the rest of the population and can increase the risk of housing insecurity. There are no farmworkers in Atherton, nor any seasonal agricultural work in the vicinity of Atherton. Households headed by one person are often at greater risk of housing insecurity, particularly female-headed households, who may be supporting children or a family with only one income. Homelessness remains an urgent challenge throughout the region, reflecting a range of social, economic, and psychological factors. Homelessness is disproportionately experienced by people of color, people with disabilities, those struggling with addiction and those dealing with traumatic life circumstances. In San Mateo County, the most common type of household experiencing homelessness is those without children in their care. Among households experiencing homelessness that do not have children, 75.5% are unsheltered. Of homeless households with children, most are sheltered in emergency shelters. San Mateo County conducted the latest point-in-time (PIT) Count on February 24, 2022. Volunteers were deployed to conduct an observational count of those experiencing unsheltered homelessness. San Mateo County conducted the unsheltered homeless survey through March 3, 2022. In both 2019 and 2022, Atherton had 1 and 3 (respectively) homeless individuals according to the most recent PIT San Mateo County data (https://www.smcgov.org/hsa/2022- one-day-homeless-count). All of these factors were considered in the evaluation of related programs from the past cycle and informed the recommendations as noted below, as well as the development of new programs in Section 3.800.

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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.

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.

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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
brochure, including information on
services on the City’s website, and
providing housing-related training for
individuals/families through workshops.
(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
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.

Objective met. Recommend program
continuance.

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.

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3.730 Consistency with State Requirements
The Town has had a number of regulations that encourage energy conservation for years. These include permitting solar installations, and promoting through various public education programs, energy efficient design. The Town also requires native landscaping to the greatest extent feasible, which reduces the need for both water and energy. All of these policies and regulations will continue.

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.

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

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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.

3.750 Program by Program Evaluation and Changes Incorporated in 2023-31 Update See Table 3.710 for 2015-22 Update Programs and Objectives Analysis. The following describes how the objectives and programs of the updated element incorporate changes resulting from the evaluation.

New Construction of Above-Moderate Income Units - The program of providing new construction of Above-Moderate income units has, in the past, depended on the construction of single-family detached homes throughout the Town’s R1-A and R1-B lots. The program has been hampered by the lack of available land and the low density character of the community. New construction invariably results in the demolition of a n existing unit, leading to nearly a net zero increase in housing units. The adoption and implementation of SB 9 by the State of California is projected to allow the creation of additional lots with higher densities and thus permit the development of a greater number of Above-Moderate housing units during the 2023-31 planning period. Further, the Town will create two new multifamily zoning districts, RM 20 and RM 10 that will facilitate the development of additional above-moderate income units.

New Construction of Affordable Units - The program of providing new construction of affordable units has, in the past, depended primarily on the construction of ADUs and JADUs. While the objective was met in the 2015-22 planning period, the RHNA objectives for 2023-31 is markedly higher. Consequently the 2023-31 Update includes Housing Program 3.813 addressing multifamily housing development on school and other properties and creation of two new multifamily zoning districts, RM 20 and RM 10. In addition, an Inclusionary Zoning Ordinance will be adopted which requires a percentage of

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units to be set aside for lower-income housing. These new programs should be sufficient to meet the 2023-31 objectives for affordable units.

Faculty and Student Housing - The program of providing additional faculty and student housing on school campuses and there appears to be a desire on the part of the schools to construct additional faculty and student housing. The 2023-31 Update includes new programs such as Inclusionary Zoning Ordinance that could assist in funding construction and zoning changes such as increased height, reduction of setbacks and similar changes that could allow increased densities, all helping to reduce barriers to development of new faculty and student housing.

Conduct Affordability Surveys - While housing affordability surveys during the 2015-22 planning period have been required as a condition of approval, they typically reflect anticipated rent, and therefore affordability, as opposed to actual affordability. Changes in the 2023-31 Update are proposed that require a survey every two years of actual rents in order to determine the actual affordability level of low and moderate income ADUs, JADUs, multifamily and other known affordable units. This change will provide data that can be used to adjust programs during the planning period, if necessary.

Maintain Contact with Affordable Housing Developers - Atherton management and planning staff have regular contact with developers of affordable housing, exchanging ideas and proposals about expanding affordable housing opportunities in Atherton. This program continues into the 2023-31 planning period in order to take advantage of affordable housing opportunities as they arise.

Conservation and Rehabilitation of Existing Units - The Atherton Planning Department works closely with the Building Department to encourage the conservation and rehabilitation of housing in Town, with particular attention to affordable housing. 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. This program continues into the 2023-31 planning period with a projected 50 to 100 permits being issued for improvement, rehabilitation and conservation projects.

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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 182 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.

B. Create a new multifamily zoning district at 10 units per acre to facilitate additional housing opportunities for the community.

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 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.

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.

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3.730 GOAL: FACILITATE THE DEVELOPMENT OF FACULTY AND STUDENT HOUSING

ON 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 80 new multifamily 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 multifamily housing on their campuses.

B. Amend the zoning code to permit multifamily by right subject to objective design standards with increased height limits and reduced setbacks.

3.740 GOAL: FACILITATE THE DEVELOPMENT OF AFFORDABLE HOUSING ON PRIVATE

PROPERTY

3.741 OBJECTIVES
A. Realize the construction of 4 new affordable multifamily housing units on private properties in Atherton from 2023-2031.

3.742 POLICIES
A. Adopt an Inclusionary Housing Ordinance and encourage private property owners to provide affordable multifamily housing on-site.

B. Adopt an Affordable Housing Fee Program for single family development as a set aside program to encourage and support the development of affordable housing opportunities in Town.

C. Amend the zoning code to permit multifamily housing by right in the RM 10 zoning district subject to objective design standards with increased height limits and reduced setbacks.

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

3.751 OBJECTIVES

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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.

3.760 GOAL: ENCOURAGE SPECIAL CONSIDERATION TO THE MAINTENANCE AND

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

See discussion in Section 3.720. As such, the following goals, objectives and policies were developed in order to best address and/or enhance meeting the housing needs of handicapped and low and moderate income 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.

C. Encourage development of accessible units with all new multifamily housing development.

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.

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

See discussion in Section 3.720. As such, the following goals, objectives and policies were developed in order to best address and/or enhance meeting the housing needs of seniors.

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.

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.

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

3.791 POLICES:

A. Amend the Zoning Code to include a new Multifamily Overlay Zoning District in addition to amending the code to facilitate multifamily housing development in the PFS zoning district (school properties). This substantial step will facilitate the development of multifamily housing in the community and provide a range of housing options including new affordable housing units and accessible units.

B. 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.

C. 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 effective so that additional units can be developed within the existing building envelope of houses and made available at more affordable rates.

D. 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.

E. 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.

F. 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

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tenants across the region. Focus enforcement efforts on race-based discrimination and reasonable accommodations.

G. 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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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 new multifamily zoning. These programs are elaborated upon within this chapter.

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Table HE-12: Summary of Projected Dwelling Units

3.810 New Construction, Conservation and Rehabilitation Very lowLowMod Above Mod Total
ADUs 112 56 112 280
Lot Splits (SB 9) 48 48
Vacant Sites 10 10
RM 10 (23
Oakwood)
4 12 16
PFS (Private
Schools)
40 40 80
Total 156 96 182 434
RHNA 148 56 144 348
Amount above or
below RHNA
+8 +40 +38 +86

3.811 New Construction of Above Moderate-Income Units

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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 48 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 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.

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

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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 property owners 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 2022 Atherton received 6 applications for SB 9 subdivisions and an additional 6 inquiries that would result in a total of 23 net new dwelling units as listed in Table HE13.

All properties listed below contain existing single-family residential uses that would not impede, but support additional uses as indicated by each project applicant, combined with the existing lot configurations and existing improvements, thus all have a high likelihood of redevelopment that all properties
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 - Approved
2 Lowery 1.2 3 Yes - Approved
125 Glenwood 1.03 1 Yes - Approved
94 Palmer 0.55 1 Yes - In Process
47 Santiago 2.53 1 Preliminary Stage
190 Selby 1.00 3 Preliminary Stage
197 Glenwood 1.29 2 Yes - In process

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1 Gresham 0.32 2 Yes - In process
97 Santiago 1.4 8 Preliminary Stage
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.

Preliminary discussions with these additional property owners, as well as all other addresses noted in the Table above, all indicated the ultimate goal to develop additional units. All of these SB 9 units would be in the above moderate-income category. Assuming this trend continues, Atherton should receive applications 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 six net new dwelling units per year will result from SB 9 property divisions and construction of two homes on a single parcel. Eligible properties were estimated based on lot size and configuration which lend themselves to relatively straight forward, non-complex land subdivisions, expressed development interest from property owners and generally older, but good condition existing physical conditions per windshield surveys. Over the 2023-2031 RHNA cycle a total of 48 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

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The Town will establish a monitoring program of SB9 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 and identify additional sites within six months if assumptions are not being met. The Town will monitor SB9 applications and approvals.

C. New Multi-family Housing Development: The Town of Atherton, since its incorporation in 1923, has been a residential community with no commercial entities except public and private schools. The early Town residents favored preservation of heritage trees and abundant open space and developed larger estate lots. The current minimum density is one residence per acre with the Town encouraging development of ADUs and JADUs on single family properties. Recognizing the extreme housing shortage in California and the San Francisco Peninsula, the Town desires to do its part in meeting the assigned RHNA production through rezoning nineteen single family properties to multifamily. This is a dramatic departure from the Town’s historic development pattern.

The Town will create a multifamily overlay zoning district, RM 10, permitting multifamily housing development at densities of 10 dwelling units per acre with heights up to 40 feet and adequate setbacks to accommodate the maximum density. Multifamily housing

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will be allowed by right, provided that each project is consistent with adopted objective design standards. One single family property have been identified for rezoning to multifamily (Table HE-14).

The Town will develop objective design standards that support new multifamily housing development in an inclusive manner with existing single-family residences. The Town will also adopt an Inclusionary Housing Ordinance to restrict 20% of the new multifamily units as affordable. With the affordable housing requirement, these projects will also be able to take advantage of Density Bonus provisions that provides additional housing units, waivers and concessions to support the provision of affordable housing.

The City Council conducted numerous study session meetings, performed site visits throughout the community, received numerous feedback and suggestions through email, phone or in-person meetings with residents and analyzed numerous properties for designation in new multifamily zones. The City Council prioritized properties that are close to services, transit, jobs and with adequate access along a public right-of-way and where the property owner is interested in developing as multifamily housing. The following property is identified:

Address Lot Size Density Development
Potential*
1 23 Oakwood 1.62 acres 10 units per acre 16 units
* not including Density Bonus units
The property owner at 23 Oakwood indicated interest in developing the property with multifamily units and has been in discussions with developers and builders. The property is 1.6 acres in area, a level lot with no known site constraints. The property has access to an improved public right-of-way and is currently served with utilities. Given the property owner’s interest, it is anticipated that this property will develop with 16 multifamily housing units under the new base zoning of RM 10 and not taking into consideration density bonus units.

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The Town will adopt an Inclusionary Housing Ordinance that will require a minimum of 20% of the multifamily dwelling units be constructed as affordable to lower income households.

The Town will take the steps listed below to facilitate new multifamily construction for market rate and lower income households:

A. Amend the Zoning Map and create a new Zoning Overlay District, RM 10 permitting 10 units per acre by right with up to 40 feet height limit and setbacks reasonable to accommodate the new development.

Adopt objective design standards. Prepare CEQA analysis and complete the rezoning within one year of Housing Element certification.

B. Adopt an Inclusionary Housing Ordinance requiring a minimum of 20% multifamily housing units be affordable to lower income households.

Adopt the Ordinance within one year of Housing Element certification.

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 2021, permits were issued for 32 ADUs. From January 1 - October 31, 2022, the Town has received 27 new ADU permits and 6 new JADU permits for a total of 33 new housing units.

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. In the past two years, a total of 48 new single family

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homes were built in Atherton and during this same time frame, there were 44 new ADUs, 3 JADUs, and 7 ADU-conversions. The Town believes that this nearly one to one ratio exists because the Town recently modified its regulations to encourage the development of ADUs. In addition, a recent community survey with nearly 18% of households responding indicates an interest by over 200 property owners to construct an ADU on their property over the next 8 years. Accordingly, the Town believes that the construction rate of 35 new ADUs per year over the next 8 years is achievable. 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 projects that the number of ADUs produced in the lower income levels would be 168 units; 112 very low to low income-, and 56 moderate-income units.

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

C. Update ADU ordinance to comply with changes to state law.

Amend zoning code by July 1, 2023.

D. 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.

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E. Amend 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. Amend the zoning code by July 1, 2023.

F. Amend the zoning code to allow two ADUs to be constructed on properties two acres or greater in area. 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.

G. 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.

H. 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.

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

The mailer will be distributed by December 31, 2023 and at least annually thereafter to advertise the program.

J. To encourage rental of ADUs and JADUs, the Town has developed a comprehensive incentive ADU/JADU rental program and is partnering 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.

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

L. Prepare a nexus study and 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 by July 1, 2024.

M. 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.

Time frame for implementation: Ongoing (Short-term Action) Agency/Official responsible for implementation: Town Planner Proposed Measurable Outcomes: Complete related ADU Ordinance and other municipal code updates by July 1, 2023. Realize 168 new accessory dwelling units in the very low-, low- and moderate-income categories and 112 new accessory dwelling units in the above moderate-income 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 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.

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 of 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.

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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 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

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past. Through the Housing Element update process, a resident group has been formed to assist the College with fundraising and facilitate the new housing development. The letter indicates that the College could support 60 additional faculty housing units. Letter from the College President is included as an appendix.

The College has identified three sites for new multifamily housing:
● Construction of a multi-family housing project on the site of an existing parking lot near the Administrative Offices. A nearby parking could be utilized for a parking facility and the building could 3 stories of housing. Most of the housing units would be set-aside for low- and moderate-income households.
● Convert WWII barrack housing to new apartments. This is anticipated to result in 26 net new housing units.
● The existing O’Brien surface parking lot.
● 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. Two sites on the Menlo School campus have been identified that can accommodate 45 multifamily units.

● 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 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 an application for a zoning change, the Town will consider rezoning the property to PFS to accommodate affordable housing consistent with existing PFS Zoning opportunities.

Time frame for implementation: The Town will amend the PFS zoning district to permit new multifamily housing by right at 40 units and 20 units per acre at four locations on the private school properties subject to objective design standards. The Town will complete the CEQA analysis and adopt the Zoning amendment within one year of Housing Element certification.

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Agency/Official responsible for implementation: Planning Department and Building Department
Proposed Measurable Outcomes: Construction of 80 new affordable multifamily units at private and public schools in the very low- to moderateincome category during the 2023-2031 planning period.

3.814 Adoption of an Inclusionary Zoning Ordinance
A. Inclusionary Fee. Adopt a new inclusionary ordinance for multifamily development and housing fee for all new single family housing construction and additions The Town will complete a nexus study and develop an inclusionary housing ordinance that would require 20% affordable units with new multifamily development and a new 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 subsidizing new multifamily housing development, an ADU rental program and supporting affordable housing opportunities in the Town. The Town will develop a program on the use of funds.

Time frame for implementation: Within one year of Housing Element adoption the Town will establish the Inclusionary Ordinance and fee and a program for the use of funds.

Agency/Official responsible for implementation: Planning Department and Finance Director
Proposed Measurable Outcomes: Require 20% affordable units with new multifamily development, generate new funds to support an affordable ADU rental program and other affordable housing opportunities.

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

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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.

Time frame for implementation: Ongoing (Long-term Action) 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
Some population groups may have special housing needs that require specific program responses, and these groups may experience barriers to accessing stable housing due to their specific housing circumstances. In evaluating related programs in the Town’s past cycles, the following programs tailored to special needs populations have been identified to increase their effectiveness.

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.

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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 ongoing (Long-term Action)
Agency/Official responsible for implementation: Planning Department Proposed Measurable Outcomes: educate seniors and assist in allowing them to remain in their home
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.

D. Conduct annual outreach to the community through direct mailers and social media posting to inform the community on programs including the HIP homesharing program, organizations that provide home retrofits for accessibility, Meals on Wheels and senior in-home care providers
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 ongoing (Longterm Action)

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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 Hall. In addition, fair housing information will be published on the Town website. This program is ongoing during the planning period.

B. Develop and implement an education/outreach campaign targeting landlords/managers on renting to people with Housing Choice Vouchers. The Town will complete this program within three years of Housing Element certification.

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. The zoning code amendment will be adopted within one year of Housing Element certification.

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. The impact fee will be adopted within two years of Housing Element certification.

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 other similar organization. Mandate training for multi-family developers, property owners and any resident renting an ADU or similar unit. This program is ongoing during the planning period.

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

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HUD. This program will be developed within two years of Housing Element certification.

G. Affirmatively market low-income units to households that are underrepresented in the Town in comparison to neighboring jurisdictions. This program will commence within six months of Housing Element certification.

Time frame for implementation: Timeframes listed for each action item.

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.

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 and promote the Town’s Green Building Guide, “Go Green and Save: Rebates for Atherton Residents” and “Clean Energy & Energy Efficiency” programs posted on the website for all new residential development
C. Continue to promote energy conservation through energy audits, participation in PG&E and Cal Water programs and encouraging energy conserving retrofits in homes.

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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

3.832 Consistency with Other General Plan Elements and Community Goals A. Continue to conduct a review and analysis of the General Plan’s compliance with the adopted Office of Planning and Research Guidelines as part of the annual General Plan implementation report required by Government Code Section 65400.

B. The Town will begin a program to also conduct an internal consistency review and analysis of the General Plan, including the Housing Element as part of the annual General Plan implementation report required by Government Code Section 65400.

Throughout the 2015-22 planning period Planning Department staff prepared and presented to the City Council for approval, a review and analysis of the General Plan for compliance with the adopted Office of Planning and Research Guidelines as part of the annual General Plan implementation report required by Government Code Section 65400. This program will be continued. A program has been added for the 2023-31 planning period to also conduct an internal consistency review and analysis of the General Plan, including the Housing Element as part of the annual General Plan implementation report required by Government Code Section 65400.

The Atherton General Plan was updated in 2019 and as part of the update process it was reviewed for internal consistency and found to be internally consistent. The 2023-31 Housing Element has also been reviewed for internal consistency and consistency with the adopted 2019 General Plan Update.

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

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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 information on the program to all property owners in Town. (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.

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

Funding sources: general fund

3.842 Housing Compliance and Monitoring
A. The Town will partner with the County or other jurisdictions to share housing staff or hire 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 thereafter
Agency/Official responsible for implementation: Planning Department Proposed Measurable Outcomes: Rental of ADUs and production of multifamily housing as identified in the Housing Element Funding Sources: General Fund

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

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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 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

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A. The Town will revise the zoning code to allow Permanent Supportive Housing 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.

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

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Proposed Measurable Outcomes: consistency with state law Funding Sources: general fund

3.849 Zoning, Fees and Other Development Standards Transparency 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

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Funding Sources: general fund

3.852 Employee Housing
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 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, area 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

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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 homes adjacent to multifamily complexes.

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.

During the 30-day public review period, the Planning Commission held a Special meeting

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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.

The Town received the HCD comment letter on October 31, 2022. The comment letter was reviewed at the November 2, 2022 City Council study session. The Council thoroughly reviewed the HCD comment letter line by line with legal citations. Public comments were received at both meetings and in writing prior to the meeting. Staff/consultants revised the Draft Housing Element to address HCD’s comments as reviewed by the City Council at its December 15, 2022 study session. Public comments were received at the meeting and in writing prior to the meeting. Staff/consultants revised the Housing Element based on City Council direction for its consideration at the January 11, 2023 City Council study session. Public comments were received at this meeting and in writing prior to the meeting. Staff/consultants further revised the Housing Element based on direction provided by the Council and additional outreach meetings were conducted on the revised Housing Element. This included several resident hosted neighborhood meetings conducted throughout the Town, and community meeting on January 12, 2023 at Menlo College.

The revised Draft Housing Element was posted on the Town’s website on January 12, 2023 and notice of the availability of the revised Draft Housing Element was provided to residents, neighboring jurisdictions and housing advocates through direct mail, social media and email.

The Planning Commission considered the Housing Element at a publicly noticed meeting on January 19, 2023.

The City Council certified, adopted and authorized submittal of the Housing Element on January 31, 2023.

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Following adoption and certification of the Housing Element, the Town will continue to engage the community in implementation of the specific programs in the Housing Element throughout the planning period. The Town anticipates that these efforts will include an annual community outreach meeting and quarterly newsletters mailed to each resident in addition to social media posts

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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

7. Letter from 23 Oakwood Property Owner

November 1, 2023
Town of Atherton
City Council and Planning Commission
80 Fair Oaks Lane
Atherton, CA 94027
Re: Comments on Multifamily Housing Objective Design and Development Standards
Dear Mayor Widmer and Honorable Council Members and Commissioners:

My name is David Arata, and my family and I own the 23 Oakwood property located in the Town of Atherton (“Town”). We write to express our continued interest in supporting the Town’s housing production goals by developing a residential project on their property. We have been following with interest the Town’s 2023-2031 Housing Element update process and the associated efforts to develop objective design and development standards. We commend the Town on taking the first steps towards achieving its housing goals, and we look forward to working with the Town to advance plans that will facilitate delivery of much needed housing during the planning period.

Based on community feedback received on the Town’s process to date, we understand there is a general desire for new development to conform to existing standards to the greatest extent possible and for new development to visually blend in with existing single family homes.

Mr. Arata shares these goals, and supports the Town’s efforts to adopt objective development standards that will add predictability to the development process going forward.

However, as recognized on page 7 of the staff report, “greater flexibility from [adopted standards] may be required to facilitate future development.” It is important that the effort to codify objective development standards does not become so prescriptive that it eliminates a future developer’s flexibility to design and deliver a feasible product type. While we do not specifically object to the large house typology that was presented in the October 23, 2023 Community Workshop, we have concerns that this development style may ultimately not be financeable or meet the market demand for higher-density homes in the Town.

As the Council and the Planning Commission consider the questions raised by staff on page 11 of the staff report, we encourage you to provide direction to examine other typologies that consider feasibility to ensure that new standards do not rule out future development. In particular, we think the Town should allow both multifamily dwellings and detached homes in the RM-10 zone, provided that a proposed project meets the minimum density standard of 10 dwelling units per acre.

We note that the State Legislature has recently taken steps to encourage small lot subdivisions in an effort to create more accessible ownership opportunities for residents. (See, e.g., Senate Bill 9 (Atkins, 2021); Assembly Bill 803 (Boerner Horvath, 2021). This reflects the

understanding that both rental and ownership opportunities are needed to address the state’s housing demands, and that a lack of accessible ownership opportunities is preventing some potential residents from accessing housing. Provided that minimum density standards are maintained, allowing a developer the option or providing attached or detached homes will help result in a product type that is more aesthetically similar to existing development within the Town while still creating new homes that comply with local and state requirements for density, affordability, and housing choices that affirmatively further the Town’s fair housing obligations.

Finally, we ask that you provide direction to staff to continue coordinating with us to ensure that when it comes time to present you with more refined options to adopt, the resulting objective development standards will be informed by what we actually can develop, ensuring that you see homes being produced, not simply plans that sit on a shelf.

We hope that as the Town works to achieve a fully certified Housing Element and adopt development standards to implement its plan, it enhances the feasibility of development with standards that reduce – rather than create – constraints on property owners that are interested in helping the Town successfully meet its housing obligations.

Thank you for your consideration, and we look forward to working with you and Town staff as this process continues.

Sincerely,
David Arata