DRAFT RESOLUTION NO. 26-XX
A RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF ATHERTON TO
ADOPT AN INCLUSIONARY HOUSING FEE
WHEREAS, on or around May 5, 2025, the California Department of Housing and Community Development certified the Town of Atherton's 2023-2031 Housing Element as compliant with state law; and
WHEREAS, Program 3.814 of the 2023-2031 Housing Element identifies the adoption of an Inclusionary Housing Ordinance that would serve as a tool to facilitate the development of affordable housing; and
WHEREAS, the Town's Inclusionary Housing Ordinance will create housing opportunities for essential workers such as teachers, healthcare workers, public sector and public safety employees to live in the community in which they work; and WHEREAS, the Town retained Bay Area Economics (BAE), Inc. to prepare a study that analyzed the fees necessary to support the construction of affordable housing, the feasibility of imposing such fees on new development, and how new market-rate units are filled with residents who spend in the local economy, thereby creating a demand for lower waged earners that need affordable housing; and
WHEREAS, there is a shortage of adequate, affordable housing for extremely low, very low, lower and moderate income households in Atherton, as evidenced by the 2023-2031 Housing Element; and
WHEREAS, the Association of Bay Area Governments (ABAG) and Metropolitan Transportation Commission (MTC) have assigned the Town a total housing need of 348 dwelling units, of which 94 are very low-income, 54 are low-income, 56 are moderate-income and 144 are above moderate-income; and
WHEREAS, the Town adopted an Inclusionary Housing Ordinance at a City Council meeting on February 18, 2026, that will substantially advance the Town's legitimate interest in providing additional housing affordable to all income levels and dispersed throughout the Town because inclusionary units required by the ordinance codified in this Chapter, including both rental and ownership units, must be affordable to either Very Low, Low, and Moderate Income Households; and
WHEREAS, the Inclusionary Housing Ordinance identifies the establishment of an inlieu fee and identified the “point of indifference” calculation method from the BAE study as the upper limit used to set fees; and
WHEREAS, on March 18, 2026 the City Council held a duly noticed public hearing to consider this Resolution and adopt the in-lieu fee methodology as provided in the BAE analysis and set the in-lieu fees; and
WHEREAS, this resolution and the inclusionary housing in-lieu fee it establishes is exempt from environmental review under the general rule section 15061(b)(3) of the California Environmental Quality Act (“CEQA”) Guidelines because CEQA applies only to projects that have the potential for causing a significant effect on the environment, and it can be seen with certainty that there is no possibility that this resolution and the inclusionary housing in-lieu fee it establishes creates changes in the physical environment, or results in any changes to the General Plan or Implementing Zoning Ordinance land use policies, and any development that occurs in the future subject to such standards will undergo an independent analysis pursuant to the requirements of CEQA; and
WHEREAS, this resolution and the inclusionary housing in-lieu fee it establishes is statutorily exempt pursuant to Section 15283 of the CEQA Guidelines because this resolution and the inclusionary housing in-lieu fee reflect determinations by the City regarding the need to adequately provide for the City’s share of regional housing needs pursuant to Government Code section 65584; and
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the Town of Atherton, as follows:
1. Finds that the facts set forth in the recitals to this Resolution are true and correct, and establish the factual basis for the City Council’s adoption of this Resolution; and
2. Adopts the inclusionary in-lieu fees for rental and ownership units as shown in Exhibit A, attached and incorporated by reference; and
3. That the proposed fees will be added to the Town’s Master Fee Schedule; and
4. That the inclusionary housing in-lieu fee will be administered and reviewed in accordance with Section 17.57.050 of the Atherton Municipal Code.
I hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the Town of Atherton at a regular meeting thereof held on this 18th day of March 2026, by the following vote:
AYES: Council Members:
NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
____________________________
Stacy Holland, MAYOR
Town of Atherton
ATTEST:
________________________
Anthony Suber, City Clerk
APPROVED AS TO FORM:
_________________________
Mona Ebrahimi, City Attorney
EXHIBIT A
Town of Atherton
Inclusionary Housing Fees
Inclusionary Housing In-Lieu Fees
Rental Units $150 per square foot of net residential development Ownership Units $200 per square foot of net residential development