Item No. 9
Town of Atherton
CITY COUNCIL STAFF REPORT – REGULAR AGENDA
TO: HONORABLE MAYOR AND CITY COUNCIL
GEORGE RODERICKS, CITY MANAGER
FROM: BRITTANY BENDIX, CONSULTING TOWN PLANNER
DATE: MAY 20 , 2026
SUBJECT: GILMORE HOUSING DEVELOPMENT SITE DISCUSSION
RECOMMENDATION
It is recommended that the Council review and discuss Housing Element Program 3.846(A) relating to the development of housing at the Gilmore House site and provide direction to staff on next steps.
BACKGROUND
On May 5, 2025, the Town received certification of its 2023-2031 Housing Element from the state Department of Housing and Community Development. Since that time the Town has initiated many of the new housing programs included in the 2023-2031 Housing Element in an effort to progress towards achieving its Regional Housing Needs Allocation (RHNA) and to pursue affirmatively furthering fair housing (AFFH).
The purpose of this report is to discuss and receive direction on the following program that would provide housing affordable to lower incomes at the Gilmore House site in Holbrook Palmer Park:
Program 3.846(A): The Town will promote housing development on the Gilmore House site in the Town-owned Holbrook-Palmer Park. Procedures to develop housing shall be consistent with the Surplus Land Act to provide affordable housing developers a right of first refusal (AB 1846). The process will include the following milestones:
▪ Solicit proposals and conduct a feasibility study to assess site. (End of December 2024) ▪ Issue RFP (Request for Proposal) for affordable (moderate or lower income) on Gilmore House site (end of July 2025)
▪ Seek to complete development of up to four units of housing (end of December 2028) The AFFH metric identified in the program is to develop up to four units of multifamily housing.
However, the site is within the RM-10 zoning overlay district and allows for a density of 10 (ten) dwelling units per acre.
May 20, 2026, City Council Staff Report
Gilmore House Development
ANALYSIS
The most recent discussions on this topic with the City Council occurred during October 2024 when the Council considered the adoption of the 2023-2031 Housing Element and Zoning Ordinance update. Upon certification of the housing element in 2025, the Town then shifted focus to adopting its Inclusionary Housing Ordinance, pursuing housing development on campus sites, and addressing the immediate implications of Senate Bill 79.
The timing identified in Program 3.846(A) anticipated earlier certification of the Housing Element and a completion of development that would correspond to the Town’s 2028 mid-cycle check-in.
The benefit of aligning the development of the Gilmore House site with the mid-cycle check-in is that its advancement may help the Town determine if additional multi-family rezoning is necessary to meet its RHNA requirements or to fulfill its AFFH goals.
Based on the information in the Town’s 2025 Annual Progress Report, the total remaining RHNA requirement by income level is:
▪ 57 units at Very Low
▪ 39 units at Low
▪ 48 units at Moderate
▪ 33 units at Above Moderate
The Town must have building permits issued for this amount of housing by December 31, 2031.
Additionally, the 2023-2031 Housing Element asserts that if during the Mid-Cycle Check-In occurring in March 2028, there are fewer than three of the RM-10 sites with developments or active development proposals, the Town will modify its zoning mid-cycle to allow for additional multifamily development. At present the Town has one application for housing filed on RM-10 sites approved by the Planning Department and currently under Building Permit review. The Planning Department has also received four Preliminary Applications for multifamily developments on other RM-10 properties and anticipates a formal submittal for each site before December 2026.
The Town is currently on pace to meet both its RHNA and AFFH objectives. Therefore, the Council may choose to further defer staff initiation of the program until a later date, or to table the discussion to a later time, such as the Mid-Cycle Check-In. If the Council directs staff to initiate this process, staff would draft a general project scope for use in a call for proposals effort. This scope would be shared and discussed at a City Council meeting prior to its release. After receiving proposals, staff would return to Council with a selection recommendation.
FISCAL IMPACT
None at this time.
GOAL ALIGNMENT
May 20, 2026, City Council Staff Report
Gilmore House Development
This Report and its contents are in alignment with the following Council Policy Goals:
▪ Goal 1 – Preserve Small Town Character and Quality of Life ▪ Goal 4 – Be Forward Thinking
PUBLIC NOTICE
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. Information about the project is also disseminated via the Town’s electronic News Flash and Atherton Online. There are approximately 1,200 subscribers to the Town’s electronic News Flash publications. Subscribers include residents as well as stakeholders –to include, but be not limited to, media outlets, school districts, Menlo Park Fire Protection District, service provides (water, power, and sewer), and regional elected officials.
COMMISSION/COMMITTEE FEEDBACK/REFERRAL
This item has not been before a Town Committee or Commission.
ATTACHMENTS
None.