Item No. 6
Town of Atherton
CITY COUNCIL STAFF REPORT – PUBLIC HEARINGS
TO: HONORABLE MAYOR AND CITY COUNCIL
GEORGE RODERICKS, CITY MANAGER
FROM: BRITTANY BENDIX, TOWN PLANNER
DATE: FEBRUARY 19, 2025
SUBJECT: CONSIDERATION OF A RESOLUTION ADOPTING REVISIONS TO
THE ATHERTON GENERAL PLAN AND INTRODUCTION OF AN
ORDINANCE WITH FIRST READING TO AMEND THE ATHERTON
MUNICIPAL CODE TO RESPOND TO COMMENTS FROM THE
CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY
DEVELOPMENT (HCD) ON THE 2023-2031 HOUSING ELEMENT AND
ZONING CODE UPDATES.
RECOMMENDATION:
It is recommended that the City Council conduct a public hearing to adopt revisions to the Atherton General Plan and Municipal Code to comply with the requirements of Department of Housing and Community Development (HCD).
BACKGROUND
Throughout the Town’s efforts to adopt a 6th cycle (2023-2031) Housing Element, the City Council and Planning Commission have held several public hearings to discuss various updates required to achieve state certification throughout the iterative Housing Element review process with state partners. On October 16, 2024, the Atherton City Council adopted revisions to the 2023- 2031 Housing Element and Municipal Code Amendments to implement development standards for multifamily housing. This package of updates to the Town’s housing programs were intended to address requirements of state housing law and to receive certification of the Town’s housing element by the California Department of Housing and Community Development (HCD). After a required public notification period, the updates were sent to HCD for review.
DISCUSSION
Housing Element and Zoning Code Updates
February 19, 2025
On December 30, 2024, the Town received a comment letter from HCD requiring additional changes to the adopted Housing Element and Atherton Municipal Code to receive certification. (Attachment 1) The items raised by HCD and necessary changes required by the Town are summarized in the next section of the report, along with any related changes proposed by staff. On January 29, 2025, the Planning Commission considered revisions to the Housing Element adopted on October 16, 2024. After the Planning Commission hearing, on February 4, 2025, Staff had an informal conversation with HCD about the changes presented to Planning Commission. HCD requested slightly more analysis, which is shown as highlighted track changes in Attachment 2.
The track changes that were made for the Planning Commission are shown as regular track changes. A link to the Housing Element, as adopted on October 16, 2024, is included at Attachment 3 for reference.
The revisions listed below also include one change to the adopted Atherton Municipal Code, specifically Section 17.36.030 ‘Allowed Uses and Permit Requirements’ that is shown in Attachment 4. A link to the Zoning Code changes, adopted on October 16, 2024, are included in Attachment 5.
Any additional materials related to the Housing Element update process are maintained on the Town’s website at: https://www.ci.atherton.ca.us/627/Housing-Element-Update Revisions listed below have been made to the adopted Housing Element in response to HCD’s comment letter issued on December 30, 2024. Italicized sections in the “Staff Action/Proposed Changes” column indicate changes made after Planning Commission review on January 29, 2025.
HCD Letter Summary of
Direction Staff Action/Proposed Changes Reference
Suitability of
Nonvacant
Sites
Provide more analysis
of the Menlo School
and Sacred Heart
School sites; similar to
what was provided for
the example sites.
In Section 3.414 Multi-Family
Overlays (RM-20 and RM-40)
staff has expanded the description
of the Menlo School and Sacred
Heart sites and included
supporting site graphics. This
information reflects the examples
provided in the adopted Housing
Element for Gonzaga University
and Northeastern University.
Staff included additional
information analyzing how the
Menlo School and Sacred Heart
sites have adequate infrastructure
and existing conditions do not
preclude development. Additional
analysis describes how the sites,
currently primarily used for
parking (Menlo School) and lowdensity housing (Sacred Heart), could be understood to contribute
See pages 92-
94 of
Attachment 2.
Housing Element and Zoning Code Updates
February 19, 2025
to lower FAR (Floor to Area
Ratios) than what could
potentially be supported by
development indicators.
Modify Table HE-17
to be organized by
indicators utilized as
redevelopment
indicators.
Table HE-17: ‘Recent
Development Trends’ includes a
list of recent development trends
observed in the Bay Area that
could be applied to the Town’s
identified housing opportunity
sites. To address HCD’s comments
staff expanded the table to include
additional columns that capture
redevelopment trends. These
factors, shown in purple on Table
HE – 17, correlate to the Site
Inventory analysis in Table HE –
18 (page 104). Additional
narrative context is also included
to describe each redevelopment
trend.
See pages 97-
99, and 102 of
Attachment 2.
Electronic
Sites
Inventory
HCD reminded the
Town to update the
electronic sites
inventory; if the
Town’s response
includes any inventory
changes.
No changes have been made to the
sites inventory; therefore staff is
not proposing any modifications.
N/A
ProgramSpecific ItemsProvide clarification in
the RM-20/40
standards and in the
Housing Element that
housing developments
with 20 percent
affordability to lowerincome households do
not require
discretionary action.
Upon further discussion with
HCD, to address this item the term
"ministerial approval" should be
explicitly written into the relevant
Code section. The existing terms
in the Atherton Municipal Code
“permitted by-right” and “zoning
clearance” are not considered
sufficient to convey ministerial
actions. Staff has modified this
language in both Section 3.420 of
the Housing Element and Section
17.36.030 of the Atherton
Municipal Code.
See page 120
of Attachment
2. See also
Attachment 4.
Housing Element and Zoning Code Updates
February 19, 2025
Provide more context
in the Housing
Element and,
potentially, in the RM20/40 standards about
the Clovis decision
and its application to
Atherton.
Staff has discussed with HCD that
discussion of the Clovis ruling is
addressed in Section 3.420
‘Zoning Shortfall Analysis.’ To
supplement this assertion staff
provided a distinction between
when housing is and is not
approved at the staff/ministerial
level. The purpose of this
requirement is not to challenge the
Town’s approach, but to document
it. Additionally, the changes
clarify that housing in the Public
Facilities and Schools (PFS) zone
that is not identified in the
Housing Element still requires a
Conditional Use Permit
(discretionary review).
See pages 119-
120 of
Attachment 2.
Revise the SB-9
program, Program
3.811(B), to evaluate
development trends
and identify
alternatives, if
necessary, in a midcycle check-in.
Staff has revised Program
3.811(B) to include the
consideration of development
trends and assumptions at the midcycle check-in. The revised language also includes
“alternatives” as a mid-cycle
option for policy direction, with
the intent to ensure the Town can
pursue alternative programs, if
desired, and is not limited.
Staff slightly modified the
language to clarify that alternative
sites to meet RHNA may be
considered if SB-9 development
trends and assumptions are not
being met by the mid-cycle checkin (review of the 2027 Annual Progress Report in March 2028).
See page 177
of Attachment
2. In addition to the HCD required changes noted above, staff also recommend making these additional changes to the adopted Housing Element:
Housing Element and Zoning Code Updates
February 19, 2025
• Page 120: Included the minimum allowed densities for the RM-20 and RM-40 MultiFamily Residential Overlay Zones. These minimum densities were included in the Development Standards adopted on October 16, 2024, but were not previously included in the Housing Element itself. This change provides consistency between the documents. • Page 131: In response to informal HCD comments, included additional narrative clarifying the qualitative objective design standards that apply to multi-family development and where they are found in the newly-adopted code.
• Page 176 and 181: Program 3.812(A) addresses the Town’s goals to develop Accessory Dwelling Units (ADUs). Staff recommends revising Program 3.812(A) to include a conservation objective of 8 units for extremely-low income (ELI) households. This would allow ADUs rented at rates suitable for extremely low-income households (i.e., resided in without paying rent or paying less than the appropriate annual extremely low-income rental limit for San Mateo County) to be counted towards meeting Housing Element goals. In 2023-2024 Atherton received rental surveys from property owners that indicated 29 ADUs in the Town are offered at ELI rates. Therefore, the Town has already met an objective of 8 units. Including it as a program measure facilitates the Town’s documentation of this achievement in Annual Progress Reports and in the next Housing Element cycle.
The items raised within HCD’s recent comment letter do not mention an issue with the Town’s approach to meeting its Regional Housing Needs Allocation (RHNA) or Affirmatively Furthering Fair Housing (AFFH) goals, especially through the Town’s RM-20/40 and RM-10 multifamily housing overlay program and the adopted development standards. Accordingly, staff is not currently recommending any changes to those programs. The Town is proceeding with the development of an inclusionary housing ordinance and fulfilling Housing Element programs as appropriate.
At the January 29, 2025 Planning Commission meeting, the Commission voted unanimously 3-0 to recommend approval to adopt revisions to the Atherton General Plan and Municipal Code to comply with the requirements of Department of Housing and Community Development’s (HCD).
ENVIRONMENTAL CONSIDERATIONS
An Initial Study/Mitigated Negative Declaration (IS/MND) was prepared for the Housing Element and Zoning Code Updates project and adopted on by the City Council on October 16, 2024. The changes described to the Atherton General Plan and Municipal Code described in this report and provided in the attachments are consistent with the scope of the IS/MND and do not result in any environmental impacts or changes to the adopted Mitigation Monitoring and Reporting Program (MMRP). The IS/MND, MMRP and supporting technical studies are available on the Town’s Housing Element website: https://www.ci.atherton.ca.us/627/Housing-Element-Update
STAFF RECOMMENDATION
Staff recommends that City Council consider the information included in this report and adopt a resolution adopting amendments to the Atherton General Plan and Municipal Code. The resolution is included as Attachment 6.
PUBLIC NOTICE
Housing Element and Zoning Code Updates
February 19, 2025
Public notification was achieved by posting the agenda, with this agenda item being listed, at least 72 hours prior to the meeting in print and electronically. Legal advertisement of this hearing was published in The Almanac newspaper and mailed to owners and occupants within the Town and within 500 feet of the Town’s boundaries, 20 days prior to the hearing date.
ATTACHMENTS
1. HCD Comment Letter dated December 30, 2024
2. Track Changes version of the January 2025 Draft Housing Element
3. Adopted 2023-2031 Housing Element (Oct. 16, 2024)
4. Municipal Code Text Amendments
5. Adopted Zoning Code Amendments (Oct. 16, 2024)
6. Draft Resolution Adopting Amendments to the 2023-2031 Housing Element
7. Draft Ordinance Adopting Amendments to Atherton Municipal Code Section 17.36.030