Inclusionary Housing
Ordinance
June 23, 2025
Study Session
1 Agenda
1. Background
2. Analysis
3. Discussion
4. Next Steps
2 June 8, 2025 Study Session
§ What is an inclusionary housing program?
§ What is required by the State to adopt?
§ How does a program work with the Town’s Housing Element goals.
§ Reviewed 2 reports prepared by Bay Area Economics (BAE) § Inclusionary Housing Feasibility Analysis
§ Inclusionary Housing In-Lieu Fee Analysis
§ Acknowledged State’s Comment Letter
3 Feedback
§ Prioritize certification of the Housing Element
§ Preference towards adopting a program for the RM-20/40 sites § Concern regarding application of a program on the RM-10 sites § Density Bonus
§ Reconsideration of sites
§ Concern regarding application of a program to single-family home construction.
4 Milestones Since January
§ Certification of the Housing Element in May
§ Completion of the 2024 Annual Progress Report (APR)
5 Atherton’s Affordable Housing Strategy
6 § Relies on both ADUs and Inclusionary from PFS Multi-family Overlay § Noted in the Town’s shortfall approach Program 3.811(C) Discussion
§ No Ordinance Adoption
§ Relies entirely on ADUs and conflicts with Program 3.811(C) § RM-20/40 On-Site Program
§ Addresses Program 3.811(C) with 20 percent affordability § RM-20/40 On-Site Program + RM-10
§ Adds in RM-10 properties (approximately netting 17 lower income units) § Townwide
§ Adds single-family home development
§ May require additional analysis by BAE
7 Next Steps
8 Objective is to acquire initial feedback to assist staff in drafting Inclusionary Housing Ordinance.
Extent of feedback and need to amend the BAE Study will influence the pace of moving forward.
§ Formal ordinance requires:
§ Planning Commission review for recommendation
§ City Council for adoption
The End
9