Cotati City Council
December 9, 2025

MTC Administrative Guidance:

Transit-Oriented Communities Policy
Guidance for Public Agency Staff Implementing Metropolitan Transportation Commission Resolution 4530
Revised May 2025 (Version 1.1)
Table of Contents
I. Background and Purpose............................................................................................. 4 II. TOC Policy Requirements........................................................................................... 5 III. Policy Applicability...................................................................................................... 5 Types of Transit ......................................................................................................... 5 Existing Transit..................................................................................................... 6 Planned Fixed-Guideway Stops/Stations Subject to the TOC Policy.................... 6 Transit Extensions................................................................................................ 7 Interregional Projects............................................................................................ 8 Transit Tiers............................................................................................................... 8 Opt-In for Areas Not Served by Fixed-Guideway Transit Service............................... 8 Exemption for Fixed-Guideway Stations Scheduled for Closure................................ 9 Exemption for Stations with Service Two Days or Fewer per Week .......................... 9 Partial Exemption for Tier 4 TOC Areas Outside Urban Service Areas ..................... 9 TOC Area Geography................................................................................................ 9 Overlapping TOC Areas........................................................................................... 10 Multi-Jurisdiction TOC Areas ................................................................................... 10 IV. Documentation Submittal and Review ..................................................................... 10 Submission Deadline ............................................................................................... 10 Documentation Submittal......................................................................................... 11 Local Jurisdiction Resolution ................................................................................... 11 MTC Review Process .............................................................................................. 11 V. Guidance for TOC Policy Submission....................................................................... 11 Section 1: Density for New Residential and Commercial Office Development......... 11 Summary of TOC Policy Requirements.............................................................. 11 206 of 545

Submitting Required Documentation.................................................................. 13 Section 2: Affordable Housing Production, Preservation, and Protection Policies and Commercial Stabilization Policies ..................................................................... 25 Summary of TOC Policy Requirements.............................................................. 25 Submitting Required Documentation.................................................................. 34 Section 3: Parking Management.............................................................................. 34 Summary of TOC Policy Requirements.............................................................. 34 Submitting Required Documentation.................................................................. 37 Section 4: Station Access and Circulation ............................................................... 40 Summary of TOC Policy Requirements.............................................................. 40 Submitting Required Documentation.................................................................. 41 Appendix A: TOC Policy Housing and Commercial Stabilization Policy Requirements I. Affordable Housing Production Policy Options............................................................. 1 Production Policy 1: Inclusionary Zoning ................................................................... 2 Production Policy 2: Affordable Housing Funding...................................................... 4 Production Policy 3: Affordable Housing Overlay Zones............................................ 7 Production Policy 4: Public Land for Affordable Housing........................................... 9 Production Policy 5: Ministerial Approval................................................................. 12 Production Policy 6: Public/Community Land Trusts................................................ 14 Production Policy 7: Development Certainty and Streamlined Entitlement Process 17 II. Affordable Housing Preservation Policy Options....................................................... 18 Preservation Policy 1: Funding to Preserve Unsubsidized Affordable Housing ....... 19 Preservation Policy 2: Tenant/Community Opportunity to Purchase........................ 22 Preservation Policy 3: Single-Room Occupancy (SRO) Preservation...................... 23 Preservation Policy 4: Condominium Conversion Restrictions ................................ 24 Preservation Policy 5: Public/Community Land Trusts............................................. 26 Preservation Policy 6: Funding to Support Preservation Capacity........................... 29 Preservation Policy 7: Mobile Home Preservation ................................................... 31 Preservation Policy 8: Preventing Displacement from Substandard Conditions and Associated Code Enforcement Activities .......................................................... 33 III. Affordable Housing Protection Policy Options.......................................................... 35 Protection Policy 1: “Just Cause” Eviction ............................................................... 36 Protection Policy 2: No Net Loss and Right to Return to Demolished Homes ......... 37 Protection Policy 3: Legal Assistance for Tenants ................................................... 39 Protection Policy 4: Foreclosure Assistance............................................................ 41 Protection Policy 5: Rental Assistance Program...................................................... 43 207 of 545

Protection Policy 6: Rent Stabilization ..................................................................... 46 Protection Policy 7: Preventing Displacement from Substandard Conditions and Associated Code Enforcement Activities ................................................................. 48 Protection Policy 8: Tenant Relocation Assistance.................................................. 50 Protection Policy 9: Mobile Home Rent Stabilization ............................................... 51 Protection Policy 10: Fair Housing Enforcement...................................................... 53 Protection Policy 11: Tenant Anti-Harassment Protections...................................... 56 IV. Commercial Stabilization Policy Options.................................................................. 57 Commercial Stabilization Policy 1: Small Business and Non-Profit Overlay ............ 58 Commercial Stabilization Policy 2: Small Business and Non-Profit Preference Policy ....................................................................................................................... 59 Commercial Stabilization Policy 3: Small Business and Non-Profit Financial Assistance Program................................................................................................. 59 Commercial Stabilization Policy 4: Small Business Advocate Office ....................... 60 Appendix B: Jurisdictions by Funding Tier
Appendix C: Log of Revisions in Version 1.1 Administrative Guidance (April 2025) 208 of 545

I. Background and Purpose
This document provides guidance to local jurisdictions on how to demonstrate compliance with MTC’s Transit-Oriented Communities (TOC) Policy (MTC Resolution 4530), adopted in September 2022 and revised in October 2023. Version 1.0 of the TOC Policy Administrative Guidance was published in fall 2024. Version 1.1 of this guidance integrates insights gleaned from further engagement with local partners over the past six months. MTC staff have made minor revisions to the Administrative Guidance to clarify the criteria for stations subject to the TOC Policy and provide greater specificity regarding the compliance requirements across the four policy components:
land use density, affordable housing, parking management, and station access. See Appendix C for additional details about these revisions.

The TOC Policy seeks to support the region’s transit investments by ensuring communities around transit stations are places that not only support transit ridership, but are also places where all Bay Area residents can live, work, and access services.

The TOC Policy is rooted in Plan Bay Area 2050 (PBA 2050), the region’s Long Range Transportation Plan/Sustainable Communities Strategy, and addresses all four elements of the Plan—transportation, housing, the economy, and the environment.

Compliance with the TOC Policy is voluntary for jurisdictions that want to advance the goals of PBA 2050 or to be eligible and/or competitive for some MTC discretionary funding.

Four goals guide the TOC Policy and advance PBA 2050 implementation:
• Increase the overall housing supply in part by increasing the density for new residential projects. Prioritize affordable housing in transit-rich areas. • In areas near regional transit hubs, increase density for new commercial office development.
• Prioritize bus transit, active transportation, and shared mobility within and to/from transit-rich areas, particularly to Equity Priority Communities located more than ½ mile from transit stops or stations.
• Support and build partnerships to create equitable transit-oriented communities within the San Francisco Bay Area.

Future One Bay Area Grant (OBAG) funding cycles (i.e., OBAG 4 and subsequent funding cycles) will consider funding revisions that prioritize investments in transit station areas that are subject to and compliant with the TOC Policy. With MTC Commission approval, MTC may consider compliance with the TOC Policy to evaluate applications for additional discretionary funding sources. 209 of 545

II. TOC Policy Requirements
The TOC policy requirements consist of the following four elements:

1. Minimum residential and commercial office densities for new development.

2. Affordable housing production, preservation and protection, and stabilizing businesses to prevent displacement.

3. Parking management.

4. Transit station access and circulation.

The specific requirements for each topic area are described in more detail below.

Jurisdictions will be evaluated for compliance with all requirements in each of the four topic areas for each TOC area1 within the jurisdiction that is subject to the TOC Policy.

For all topic areas, a jurisdiction may use an existing adopted policy or plan to meet the requirements or, as needed, may adopt new policies/standards by the deadline for compliance with the TOC Policy (see section V. Documentation Submittal and Review, below, for more details). Where applicable, a jurisdiction may rely on jurisdiction-wide policies to demonstrate compliance for a TOC area.

III. Policy Applicability
Types of Transit
The TOC Policy applies to areas within ½ mile of the following types of existing and planned fixed-guideway transit2 stops and stations:
• Regional rail (e.g., Bay Area Rapid Transit, Caltrain) • Commuter rail (e.g., Capitol Corridor, Altamont Corridor Express, Sonoma-Marin Area Rail Transit, Valley Link)
• Light-rail transit (LRT)
• Bus rapid transit (BRT)3
• Ferries
The ½-mile radius around a transit station/stop applies even if the jurisdiction has adopted a Priority Development Area (PDA) whose boundaries are different. 1 A TOC area is the geography surrounding a fixed-guideway transit stop or station that is subject to the TOC Policy requirements. See “TOC Area Geography” in Section III. Policy Applicability for more information on how this specific geography is determined. 2 “Fixed guideway means a public transportation facility that uses and occupies a separate right-of-way or rail line for the exclusive use of public transportation and other high occupancy vehicles, or uses a fixed catenary system and a right of way usable by other forms of transportation. This includes, but is not limited to, rapid rail, light rail, commuter rail, automated guideway transit, people movers, ferry boat service, and fixed-guideway facilities for buses (such as bus rapid transit) and other high occupancy vehicles.” (49 CFR § 611.105)
3 The TOC Policy uses the definition of “bus rapid transit” (BRT) from California Public Resources Code section 21060.2.
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A map and list of the jurisdictions and stations subject to the TOC Policy for the deadline associated with the OBAG 4 Cycle is available on MTC’s website.

Existing Transit
The TOC Policy applies to jurisdictions with existing fixed-guideway transit service stops and stations, as defined above. For jurisdictions with an existing stop/station, OBAG (i.e., OBAG 4 and subsequent funding cycles) is currently the only funding source for which MTC will consider TOC compliance in its investment decisions. With Commission approval, MTC may consider compliance with the TOC Policy to evaluate applications for additional discretionary funding sources for enhancements or improvements to existing stops/stations.

Planned Fixed-Guideway Stops/Stations Subject to the TOC Policy Fixed-guideway stations that are planned but not currently in service may need to demonstrate compliance with TOC Policy requirements by the deadline associated with the OBAG 4 cycle. This applies to planned stations meeting any of the following criteria:
• Project begins construction by January 1, 2025.

AND/OR
• Project allocated regional discretionary funding that requires committing to compliance by the OBAG 4 cycle, as per the requirements of MTC Resolution 4530.

AND/OR
• Project has a Major Project Advancement Policy (MAP) Level of 1 or 2.

Additionally, planned stations meeting both of the following criteria are subject to achieving TOC Policy compliance by the deadline associated with the OBAG 4 cycle:
• Project has finished the environmental review phase, or completed equivalent planning analyses, with analysis based on defined station location(s). At their discretion, MTC staff may determine a station location is sufficiently defined to be subject to the OBAG 4 TOC Policy compliance deadline even if environmental review is not yet complete.

AND
• Project is in “Bin 1” of the Plan Bay Area 2050+ Transportation Project List in either the Final Blueprint (as advanced into environmental phase) or the adopted Final Plan. However, achieving TOC Policy compliance by 2026 is optional for projects that are in Bin 1 in the Final Blueprint but ultimately are not in Bin 1 as part of the adopted Final Plan. Bin 1 encompasses projects expected to be operational by 2035.
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Opt-In for Planned Fixed-Guideway Stops/Stations Not Subject to the TOC Policy A planned station that does not meet the criteria above can choose to opt in to achieving compliance for the planned TOC area for the OBAG 4 cycle. To do so, the planned station must have a sufficiently defined station location as determined by MTC staff (e.g., the project has completed environmental review). Density and parking standards for planned TOC areas that opt in would be based on the anticipated level of transit service.

Transit Extensions
“Transit extensions” refer to the creation of a new fixed-guideway transit system (rail, ferry, or bus rapid transit), or extension of an existing fixed-guideway transit system to a new station, stations, or terminals. Transit extensions include new infill stations on a fixed-guideway transit system, and major expansions of existing stations to accommodate a new fixed-guideway transit system or route.

The TOC Policy establishes different compliance expectations for transit extension projects seeking awards or allocations of regional discretionary capital funding4 based on the project’s delivery stage, as follows:

1. Project Development/Environmental Review: Project sponsors, and local jurisdictions as applicable, must provide a letter or resolution acknowledging that future allocation requests to MTC will be subject to the TOC Policy pursuant to later phases.

2. Project Design and Early Right-of-Way Acquisition: Jurisdictions must commit in writing to take steps toward achieving compliance by 2026 for the station area(s) seeking funding.

3. Project Construction: Jurisdictions do not need to submit a letter of commitment, but they should work with MTC staff to achieve compliance by 2026.

The transit extension project sponsor/implementing agency must include an acknowledgement or commitment letter or resolution, as applicable, in its request to MTC for regional discretionary funding. Templates for the jurisdiction letters and resolutions are available on the MTC TOC Policy website. See Appendix 1 of MTC Resolution 4530 for more details about the requirements for transit extensions.

Beginning in 2026, these requirements will also apply to transit extension projects seeking MTC endorsement for federal or state discretionary capital funding. 5 4 For the purposes of the TOC Policy, “regional discretionary funding” for transit projects includes the following fund sources: regional bridge tolls and associated programs (e.g., RM2 & RM3), Surface Transportation Block Grant Program (STBG), Congestion Mitigation Air Quality Improvement Program (CMAQ), Regional Transportation Improvement Program (RTIP), and Regional Exchange Program (MTC Exchange). This list is non-exhaustive and could be amended in the future if MTC exercises discretionary control over additional funding sources.
5 In the context of TOC Policy implementation, "endorsement” refers to when the MTC Commission acts to endorse projects seeking funding from other sources or when a project is added to the list of projects 212 of 545

Interregional Projects
Interregional projects that trigger MTC's Interregional Project Funding and Coordination Policy (Resolution No. 4399) shall be subject to the TOC Policy as set forth in this paragraph. For any portion of the project within MTC’s jurisdiction, the project sponsor must satisfy the requirements as noted above for Existing Transit and Transit Extensions, as applicable. For portions of the project within the jurisdiction of another Metropolitan Planning Agency (MPO)/Regional Transportation Planning Agency (RTPA), the Interagency Agreement referenced in Resolution 4399 must include a provision acknowledging the applicability of the TOC Policy, confirming compliance with the TOC Policy for the Bay Area portion of the project, and a commitment from the other MPO/RTPA to strive towards achievement of TOC Policy requirements for the portions of the project outside of the Bay Area. The other MPO/RTPA’s commitment for non-Bay Area portions of the project should include, as practicable, an agreement to regularly report on the status of progress to meeting TOC Policy requirements, to explain any challenges with achieving TOC Policy requirements, and any steps that will be taken to overcome those challenges.

Transit Tiers
Geographic areas subject to the TOC Policy are categorized by tier according to the level of transit service at fixed-guideway station(s) within ½ mile:
• Tier 1: Rail stations serving regional centers (i.e., Downtown San Francisco, Downtown Oakland, and Downtown San José)
• Tier 2: Stop/station served by two or more BART lines or BART and Caltrain • Tier 3: Stop/station served by one BART line, Caltrain, light rail transit, or bus rapid transit
• Tier 4: Commuter rail (SMART, ACE, Capitol Corridor, Valley Link) stations, Caltrain stations south of Tamien, or ferry terminals
Density and parking management requirements are defined by transit tier, while other requirements are consistent across all tiers.

Opt-In for Areas Not Served by Fixed-Guideway Transit Service Jurisdictions with transit stops and stations that are not served by fixed-guideway service (e.g., areas that are only served by regular fixed-route bus transit) may choose to “opt in” and voluntarily meet TOC Policy requirements for these areas. 6 Station
areas/stops where a jurisdiction has voluntarily complied with the TOC Policy may be eligible for any future funding sources where the MTC Commission chooses to adopt TOC Policy compliance as a prerequisite for funding or a factor in prioritizing funding. and programs included in MTC’s Major Project Advancement Policy (MAP) or a change is made to a project’s MAP Level.
6 For locations with no fixed-guideway transit service, the Tier 4 density and parking management requirements will apply in addition to all other TOC Policy requirements. 213 of 545

Exemption for Fixed-Guideway Stations Scheduled for Closure Jurisdictions are exempt from complying with the TOC Policy for existing fixed-guideway transit stations that are scheduled to close. For the purposes of TOC Policy compliance, a station is “scheduled to close” if the station closure is a component of a transportation project included within, or otherwise specified by, the Regional Transportation Plan that was most recently adopted prior to the beginning of the relevant OBAG cycle (e.g., Plan Bay Area 2050+ for OBAG 4). A primary goal of the policy changes needed to achieve TOC Policy compliance is supporting transit ridership, and these policies have limited impact if a station is scheduled to close.

Exemption for Stations with Service Two Days or Fewer per Week Jurisdictions are exempt from complying with the TOC Policy for existing fixed-guideway transit stations that have service two days or fewer per week if service is not proposed to be expanded to a greater number of days per week in the Regional Transportation Plan that was most recently adopted prior to the beginning of the relevant OBAG cycle (e.g., Plan Bay Area 2050+ for OBAG 4). Stations with very limited service are less likely to be able to support the development and circulation patterns envisioned in the TOC Policy.

Partial Exemption for Tier 4 TOC Areas Outside Urban Service Areas County governments are exempt from complying with the residential and commercial office density requirements for any portion of existing or planned Tier 4 TOC areas within the unincorporated county that are outside of the Urban Service Area. However, these jurisdictions are still subject to comply with all other TOC Policy requirements for these areas (housing policies, parking management, and station access). These areas are not yet envisioned to support dense development in local and regional plans, but other aspects of the TOC Policy remain important and impactful in these communities.

Access planning enables those who live or work nearby to more easily use these stations, while parking management policies ensure that development that does occur is transit supportive. Additionally, affordable housing policies safeguard against displacement of existing lower-income residents and support people from all backgrounds being able to live in neighborhoods served by transit.

TOC Area Geography
The ½-mile area is measured from a single point at the center of the stop or station.

Where a station/stop includes infrastructure such as platforms, bus transfer facilities, and parking areas, a single centroid is identified rather than computing distance from multiple station entrances or property boundaries. Open water, rivers, canals, and other water bodies are excluded, which may result in the TOC area being an irregular shape rather than a perfect circle.
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For more information on how the density and parking requirements apply to TOC areas, see “Section 1: Density for New Residential and Commercial Office Development” and “Section 3: Parking Management” below.

A map and list of the jurisdictions and stations subject to the TOC Policy for the deadline associated with the OBAG 4 Cycle is available on MTC’s website.

Overlapping TOC Areas
In some cases, the ½-mile area around one stop/station may intersect with the ½-mile area around another stop/station, resulting in overlapping TOC areas. As a jurisdiction must demonstrate compliance for each TOC area separately, a parcel within an overlapping area will be considered in calculating the average zoning density as well as evaluating the parking standards for each of the overlapping TOC areas. If the overlapping TOC areas represent different transit tiers, parcels in the overlapping areas must meet the standards for the higher transit tier (i.e., Tier 1 is higher than Tier 2).

For jurisdictions with overlapping TOC areas, MTC will work with local staff to identify situations where TOC areas can be consolidated (e.g., along BRT or LRT corridors or in downtown areas) for aggregate analysis of TOC compliance.

Multi-Jurisdiction TOC Areas
A TOC area may encompass multiple jurisdictions. A jurisdiction is exempt from complying with any TOC Policy requirements if it contains 20 percent or less of the TOC area, as determined by MTC staff. A jurisdiction that comprises more than 20 percent of a TOC area must comply with all TOC Policy requirements for its portion of the TOC area.

For the TOC Policy density standards, a jurisdiction is not responsible for zoning densities/intensities outside its boundaries, but it must meet the TOC Policy standards for the portion of the TOC area within its jurisdiction.7 IV. Documentation Submittal and Review
Submission Deadline
To ensure eligibility for OBAG 4 funding and any other discretionary funding that may be linked to TOC Policy compliance, jurisdictions should anticipate demonstrating compliance prior to adoption of OBAG 4, expected in early 2026. MTC will provide more information about submission deadlines as part of developing the OBAG 4 program. 7 Average zoning density calculation requirements are covered in Section V of this Guidance document. 215 of 545

Documentation Submittal
MTC will accept submissions from jurisdictions to demonstrate compliance with the TOC Policy for each TOC area subject to the policy within the jurisdiction. Jurisdictions must use the TOC Policy Submission Portal developed by MTC. Jurisdictions may submit documentation on a rolling basis until the submission deadline. Questions about documentation submittal should be directed to [email protected].

Local Jurisdiction Resolution
The jurisdiction’s final submission must be accompanied by a resolution adopted by the city council or board of supervisors confirming compliance with the TOC Policy. For jurisdictions with multiple TOC areas, the jurisdiction may submit a single resolution that includes reference to all TOC areas for which the jurisdiction is confirming compliance.

MTC Review Process
To complete its review of a jurisdiction’s submission, MTC may request additional clarifying documentation and information from the jurisdiction. Additionally, to assist with its review of the submission, MTC may consult with and gather relevant information from any individual, entity, or public agency. Jurisdictions will receive confirmation of its compliance status after MTC has completed its review of submitted documentation.

V. Guidance for TOC Policy Submission
This section provides the guidance necessary to demonstrate compliance with MTC’s TOC Policy requirements. It is divided into four sections:

1. Zoning density and intensity requirements for residential and commercial office development.

2. Affordable housing production, preservation, and protection policies and commercial stabilization policies

3. Parking management policies

4. Station access and circulation requirements
Section 1: Density for New Residential and Commercial Office Development
Summary of TOC Policy Requirements
The TOC Policy seeks to ensure that local planning policies and zoning regulations enable new development within TOC areas to be built at sufficiently high densities to support transit ridership and increase the proportion of trips taken by transit. The mechanism for furthering this goal is the requirement that jurisdictions adopt minimum density and intensity requirements in TOC areas. Additionally, if a jurisdiction chooses 216 of 545

to adopt maximum density and intensity requirements, these must be high enough to support robust transit-oriented development.
8 The Policy does not require a jurisdiction to plan or zone specific parcels for a particular land use or density. Rather, a jurisdiction is required to meet zoning density and intensity standards where zoning allows new residential, office, or mixed-use development. The density requirements represent an average taken across the TOC area, and the required average densities are based on the area’s Transit Tier (see Tables 1 and 5).

The minimum density/intensity in a given zoning district where housing and/or commercial office uses are permitted may be below the TOC Policy thresholds (Tables 1 and 5), provided the average across the TOC area meets the requirement.9 Cities that have adopted Form Based Codes without density standards are required to adopt minimum densities, minimum Floor Area Ratios (FARs), or minimum heights for future residential, commercial office, and mixed-use projects.

A jurisdiction without minimum residential or commercial office zoning standards may use the minimums identified in an adopted General Plan, Specific Plan, or Area Plan to the extent the Plan requires that new development must occur at or above a minimum threshold. In the absence of such a requirement or zoning standard, a zone without a minimum density will be assigned a “zero” for the purposes of calculating the average for the TOC area. A minimum density value of zero for any zone in a TOC area will make it more difficult to achieve the required areawide averages. This is further explained in the methodology below.

A jurisdiction is not required to adopt maximum allowable density/intensity standards.

However, if a jurisdiction has adopted these standards, then the average of the maximum density/intensity allowed for residential or commercial office uses must meet or exceed the TOC Policy’s thresholds (Tables 3 and 7).

Areas Subject to Density/Intensity Requirements
For the residential density calculations, only zoning districts that allow residential development as a permitted use (i.e., with no use permit requirement) are included. For the purposes of TOC Policy compliance, only residential uses that represent the most common forms of residential dwellings (i.e., single-family residences, duplexes, multifamily housing, and mixed-use development) are considered “residential development.” 8 While the TOC Policy does not specify requirements for building heights, local jurisdictions should not limit building heights such that new residential development at the densities specified by the TOC Policy becomes infeasible.
9 “Permitted” means the use is listed as a permitted use in the zoning regulations, with no use permit requirement.
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For the commercial office intensity calculations, only commercial, residential, and mixed-use zoning districts that allow office as a permitted use are included. For the purposes of TOC Policy compliance, uses that are considered office include (but are not limited to) professional office, business office, government office, medical office, administrative office, commercial office, general office, etc.

Areas Eligible for Exclusion from Density/Intensity Requirements If a zoning district only permits less typical residential uses (e.g., ADUs, live/work spaces, transitional housing, etc.), this district will not be included in the average residential density calculations. Zones intended to conserve land for open space or agriculture may be excluded from residential density calculations even if these zones list residential development as a permitted use.

Industrial zoning districts in which offices are permitted uses may be excluded from commercial office intensity calculations at a jurisdiction’s discretion.

The Policy allows parcels with existing dwelling units to be excluded from the residential density and commercial office intensity calculations to minimize the risk of displacement. However, a parcel may not be excluded if it was counted as a Housing Opportunity Site in the jurisdiction’s Housing Element and assumed to produce one or more units of housing.

For the TOC Policy, “existing dwelling units” are residential units that received a building permit prior to January 1, 2024. However, if a project has not received a certificate of occupancy by the beginning of the OBAG 5 cycle (anticipated in 2030), the parcel cannot be excluded from future TOC Policy compliance cycles.

Note: Calculation of the average density includes parcels zoned to allow residential and/or commercial office development where it may not be physically possible to construct new residential, commercial office, or mixed-use buildings within the specified density ranges due to small parcel sizes, environmental factors, conflicts with Airport Land Use Compatibility Plans, etc.

Submitting Required Documentation
Demonstrating conformance to the TOC Policy includes four calculations of average density/intensity within the TOC area:
• Minimum zoning density required for zones allowing residential uses. • If a jurisdiction has maximum residential density standards, the maximum zoning density for zones allowing residential uses.
• Minimum commercial office intensity (FAR) required for zones allowing office uses. • If a jurisdiction has maximum commercial intensity standards, the maximum commercial office intensity (FAR) for zones allowing office uses. 218 of 545

MTC’s TOC Policy Submission Portal is programmed to complete these calculations based on a jurisdiction’s zoning data. A five-step process is outlined below for how the calculations are completed and how to determine density and FAR equivalencies if a zoning district does not use these metrics. Local jurisdictions may use this process to complete calculations outside the TOC Policy Submission Portal, but ultimately all zoning information and parcel exclusions must be submitted in the portal to ensure consistency across jurisdictions.

The calculations do not require determination of “buildout” in the TOC area. Rather, they only require calculation of the average minimum and maximum density/intensity allowed by zoning on eligible parcels. Moreover, determination of the average zoning density and intensity is intended only as a theoretical calculation to evaluate compliance with the TOC Policy. The average density/intensity calculations do not in any way preclude or discourage mixed-use development or non-office commercial uses, nor do they disallow or discourage the addition of residential or office uses to projects of other uses.

Step 1 is identifying the baseline set of zones or parcels to be used in the average density/intensity calculations for a TOC area. Steps 2 to 5 correspond to the calculations of minimum residential density, maximum allowable residential density, minimum commercial office intensity, and maximum allowable commercial office intensity for those zones or parcels.

Step 1: Determine the Baseline Areas to be Included in the Calculations i. Identify all zoning districts in the TOC area where residential uses are a permitted use (i.e., no use permit is required). This includes single-family residential zones, multi-family residential zones, mixed-use zones where residential development is a permitted use, and non-residential districts that specifically identify residential development as a permitted use. Zones intended to conserve land for open space or agriculture may be excluded from the average residential density calculation, even where residential development is listed as a permitted use. If a zoning district only permits less typical residential uses (e.g., ADUs, live/work spaces, transitional housing, etc.), this district will not be included in residential density calculations.
ii. Identify all zoning districts in the TOC area where commercial offices are a permitted use. This includes commercial and mixed-use zones where office is a permitted use, and any residential zones that allow 100 percent office uses (zones that only allow office as an ancillary use are excluded). Industrial zoning districts in which offices are permitted uses may be excluded from commercial office intensity calculations at a jurisdiction’s discretion. iii. Calculate the net acreage in each zoning district in the TOC area. “Net” acreage means streets or un-zoned features within the zoning boundary are not counted.

Net acreage is automatically calculated in the TOC Policy Submission Portal. 219 of 545

iv. If a jurisdiction chooses to exclude parcels with existing residential dwelling units, prepare a list of parcels to be excluded (subtracted) from the eligible acreage.

However, if the parcel was counted as a Housing Opportunity Site in the jurisdiction’s Housing Element and assumed to produce one or more units of housing, it may not be excluded. For any excluded parcel, the jurisdiction must document the assessor parcel number, address, acreage, existing zoning, and existing land use. Additionally, the jurisdiction must use the map feature in the TOC Policy Submission Portal to exclude these parcels from density calculations. v. Report the remaining net acreage in each eligible residential zone and each eligible commercial office zone, the sums of these acreages, and the percentage of the total eligible zones that each individual zone represents. This information will be automatically calculated in the TOC Policy Submission Portal. vi. Zoning districts included in the residential calculation may also be included in the office calculation, where applicable.

Step 2: Calculate the Average Minimum Residential Density Required by Zoning in the TOC Area
A jurisdiction must demonstrate that the average minimum zoning density in the TOC area meets the adopted TOC Policy standard for its transit tier shown in Table 1. A jurisdiction without minimum density standards may refer to the ranges in its General Plan or an adopted Specific or Area Plan that applies to the TOC area, to the extent the relevant Plan requires that development must occur at or above the minimum. Cities without minimum density standards (either in zoning or the General Plan, Specific Plan, or Area Plan as described above) must assign a “zero” to the applicable zones when calculating the TOC area average.

Table 1: Average Minimum Zoning Densities Required for Residential Development Level of Transit Service
Average Minimum
Zoning Density
Tier 1: Rail stations serving regional centers (i.e., Downtown San Francisco, Downtown Oakland, and Downtown San Jose)
100 units/net acre or
higher
Tier 2: Stop/station served by two or more BART lines or BART and Caltrain
75 units/net acre or
higher
Tier 3: Stop/station served by one BART line, Caltrain, light rail transit, or bus rapid transit
50 units/net acre or
higher
Tier 4: Commuter rail (SMART, ACE, Capitol Corridor, Valley Link) stations, Caltrain stations south of Tamien, or ferry terminals 25 units/net acre or
higher
Notes:

1. Tier 3 TOC areas in jurisdictions with 30,000 residents or fewer may use Tier 4 standards. For the OBAG 4 cycle, this applies to Tier 3 TOC areas in Belmont, Brisbane, Lafayette, Orinda, and San Carlos. January 1, 2024 population estimates from the California Department of Finance. 220 of 545

Table 2 is an equivalency table for zoning districts where housing is permitted but minimum density is expressed using floor area ratio (FAR) or height. The table allows jurisdictions using zones not measured in dwelling units per acre to convert to density equivalents so averages may be more accurately estimated. The equivalencies in Table 2 are “default” standards based on sample projects. Jurisdictions are encouraged to develop their own equivalency tables based on actual projects within their TOC area or nearby, subject to approval by MTC. MTC staff will automatically approve jurisdictiondeveloped equivalency tables or density calculation methodologies that were accepted by the California Department of Housing and Community Development (HCD) in a certified Housing Element from the 6th Cycle or later. However, the equivalency table may only be used if the FAR or height standards are legally required minimums, as described above for zoning districts that use a dwelling units per acre standard.

Table 2: Equivalency Table for Minimum Density Calculation (only for use in zones with no density standard)
If there is no
minimum density, but
the minimum FAR
required is…
…then use this
equivalent for
minimum density
If there is no
minimum density or
FAR, but the
minimum height is…
…then use this for
equivalent minimum
density
None Zero None Zero
Less than 0.5 8 DUA Less than 25′ 12 DUA
Between 0.5 and 0.74 16 DUA 25′ to 34.9′ 35 DUA
Between 0.75 and 0.99 25 DUA 35′ to 44.9′ 55 DUA
Between 1.0 and 1.49 50 DUA 45′ to 54.9′ 75 DUA
Between 1.5 and 1.99 75 DUA 55′ to 64.9′ 100 DUA
Between 2.0 and 2.99 100 DUA 65′ to 74.9′ 125 DUA
Between 3.0 and 3.99 125 DUA 75′ to 84.9’ 150 DUA
Between 4.0 and 4.99 150 DUA Add 25 DUA for each 10’ from 85’ upward Add 40 DUA for each 1.0 FAR from 5.0 upward
Once a density or density equivalent has been assigned to each zone, the weighted average is determined. Figure 1 illustrates the formula for this calculation. This calculation is performed within the TOC Policy Submission Portal. 221 of 545

Figure 1: Calculation of Average Required Minimum Residential Zoning Density As shown in Figure 1, to calculate the average minimum residential zoning density for the TOC area, the total acres in each zone to be included (shown as Zone 1, Zone 2, etc.) is divided by the total acres in the TOC area where residential uses are permitted.

The sums developed in Step 1 are used for the numerator and the denominator, with any parcels excluded by the jurisdiction subtracted from these figures.

This result is then multiplied by the minimum density for that zone. If the zone has no density standard but does require a minimum FAR or minimum height, use Table 2 to determine the equivalent density. This process is repeated for each zoning district in the TOC area where residential uses are permitted, and the results for each zone are summed to result in the weighted average minimum residential density.

Step 3: Calculate the Average Maximum Residential Density Allowed by Zoning in the TOC Area
A jurisdiction must demonstrate that, if it has adopted a maximum residential density standard, the average maximum allowable residential zoning density in the TOC area meets or exceeds the adopted TOC Policy threshold for its transit tier shown in Table 3. 222 of 545

Table 3: Average Maximum Zoning Density Threshold for Residential Development Level of Transit Service
Threshold for Average
Maximum Zoning
Density
Tier 1: Rail stations serving regional centers (i.e., Downtown San Francisco, Downtown Oakland, and Downtown San Jose)
150 units/net acre or
higher
Tier 2: Stop/station served by two or more BART lines or BART and Caltrain
100 units/net acre or
higher
Tier 3: Stop/station served by one BART line, Caltrain, light rail transit, or bus rapid transit
75 units/net acre or higher
Tier 4: Commuter rail (SMART, ACE, Capitol Corridor, Valley Link) stations, Caltrain stations south of Tamien, or ferry terminals 35 units/net acre or higher
Notes:

1. Tier 3 TOC areas in jurisdictions 30,000 or fewer residents may use Tier 4 standards. For the OBAG 4 cycle, this applies to the Tier 3 TOC areas in Belmont, Brisbane, Lafayette, Orinda, and San Carlos. January 1, 2024 population estimates from the California Department of Finance.

2. The allowable densities are consistent with PBA 2050 modeling for Strategy H3 (see Forecasting and Modeling Report, pp. 44-45).

Table 4 is an equivalency table for zoning districts where housing is permitted but maximum allowable density is expressed using floor area ratio (FAR) or height. The table allows jurisdictions using zones not measured in dwelling units per acre to convert to density equivalents so averages may be more accurately estimated. The equivalencies in Table 4 are “default” standards based on sample projects. Jurisdictions are encouraged to develop their own equivalency tables based on actual projects within the TOC area or nearby, subject to approval by MTC. MTC staff will automatically approve jurisdiction-developed equivalency tables or density calculation methodologies that were accepted by HCD in a certified Housing Element from the 6th Cycle or later.

Table 4: Equivalency Table for Maximum Density Calculation (only for use in zones with no density standard)
If there is no maximum
density, but the
maximum FAR allowed
is...
…then use this
equivalent for
maximum
density
If there is no maximum
density or FAR, but the
maximum allowable
height is…
…then use this
for equivalent
maximum density
Less than 0.50 8 DUA Less than 25′ 12 DUA
Between 0.5 and 0.74 16 DUA 25′ to 34.9′ 35 DUA
Between 0.75 and 0.99 25 DUA 35′ to 44.9′ 55 DUA
Between 1.0 and 1.49 50 DUA 45′ to 54.9′ 75 DUA
Between 1.5 and 1.99 75 DUA 55′ to 64.9′ 100 DUA
Between 2.0 and 2.99 100 DUA 65′ to 74.9′ 125 DUA
Between 3.0 and 3.99 125 DUA 75′ to 84.9’ 150 DUA
Between 4.0 and 4.99 150 DUA Add 25 DUA for each 10’ from 85′ upward Add 40 DUA for each 1.0 FAR from 5.0 upward
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Once a density or density equivalent has been assigned to each zone, the weighted average is determined. Figure 2 illustrates the formula for this calculation. This calculation is performed within the TOC Policy Submission Portal.

Figure 2: Calculation of Average Maximum Allowable Residential Zoning Density As shown in Figure 2, to calculate the average maximum allowable residential zoning density for the TOC area, the total acres in each zone to be included (shown as Zone 1, Zone 2, etc.) is divided by the total acres in the TOC area where residential uses are permitted. The sums developed in Step 1 are used for the numerator and the denominator, with any parcels excluded by the jurisdiction subtracted from these figures.

This result is then multiplied by the allowable maximum density for that zone. If the zone has no density standard but does include maximum FAR or maximum heights, use Table 4 to determine the equivalent density. This process is repeated for each zoning district in the TOC area where residential uses are permitted, and the results for each zone are summed to result in the weighted average required allowable maximum residential density.

Step 4: Calculate the Average Minimum Commercial Office Space Intensity Required by Zoning in the TOC Area
A jurisdiction must demonstrate that the average minimum required zoning intensity for commercial office space in the TOC area meets the adopted TOC Policy standard for its transit tier shown in Table 5. Again, it is recognized that a jurisdiction may not have adopted minimum FAR standards (or minimum heights) for commercial office space in its TOC area. A jurisdiction without such standards may refer to the ranges in its 224 of 545

General Plan or an adopted Specific or Area Plan that applies to the TOC area, to the extent the relevant Plan requires that development must occur at or above the minimum. Cities without minimum standards for FAR (either in zoning or the General Plan, Specific Plan, or Area Plan) must assign a “zero” to the applicable zones when calculating the TOC area average.

Table 5: Average Minimum Zoning Intensities Required for Commercial Office Development
Level of Transit Service
Average Minimum Zoning
Intensity Required for
Commercial Office Space
(FAR)
Tier 1: Rail stations serving regional centers (i.e., Downtown San Francisco, Downtown Oakland, and Downtown San Jose)
4 or higher
Tier 2: Stop/station served by two or more BART lines or BART and Caltrain
3 or higher
Tier 3: Stop/station served by one BART line, Caltrain, light rail transit, or bus rapid transit
2 or higher
Tier 4: Commuter rail (SMART, ACE, Capitol Corridor, Valley Link) stations, Caltrain stations south of Tamien, or ferry terminals 1 or higher
Notes:

1. For mixed-use projects that include a commercial office component, this figure shall not be less than the equivalent of the applicable allowed or permitted FAR standard.

Table 6 is an equivalency table for zoning districts where minimum required intensity is expressed using height rather than FAR. Table 6 shows equivalent FARs for height limits ranging from zero to 75 feet. The equivalencies in Table 6 are “default” values based on sample projects. Jurisdictions are encouraged to develop their own equivalency tables based on actual projects within the TOC area or nearby, subject to approval by MTC.

Table 6: Equivalency Table for Minimum Zoning Intensity for Commercial Office (only for use in zones with no Floor Area Ratio [FAR] standard) If there is no FAR standard, but the minimum
height required is...
…then use this as the equivalent
FAR
None 0
Less than 25’ 0.3
25′ to 34.9′ 1.0
35′ to 44.9′ 1.5
45′ to 54.9′ 2.0
55′ to 64.9′ 3.0
65′ to 79.9′ 4.0
80′ to 99.9’ 5.0
Add 1.0 FAR for each 15’ from 100’ upward
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Jurisdictions may have zoning districts in which mixed-use or residential projects are subject to higher minimum intensity standards than projects that are 100 percent office.

For example, a zone may require a minimum FAR of 0.5 for a 100 percent office project but require at least 1.0 FAR for a residential or mixed-use project. In such instances, the higher minimum may be used in the calculations. This recognizes the intent of the TOC Policy, which is to incentivize zoning that supports higher building intensity in TOC areas.

Once an FAR or FAR equivalent has been assigned to each zone, the weighted average is determined. Figure 3 illustrates the formula used for this calculation. This calculation is performed within the TOC Policy Submission Portal.

Figure 3: Calculation of Average Minimum Required Commercial Office Zoning Intensity As shown in Figure 3, to calculate the average minimum commercial office zoning intensity for the TOC area, the total acres in each zone to be included (shown as Zone 1, Zone 2, etc.) is divided by the total acres in the TOC area where office uses are permitted. The sums developed in Step 1 are used for the numerator and the denominator, with any parcels excluded by the jurisdiction subtracted from these figures.

This result is then multiplied by the minimum intensity for that zone. If the zone has no FAR standard but does have minimum heights, use Table 6 to determine the FAR equivalent. This process is repeated for each zoning district in the TOC area where office uses are permitted, and the results for each zone are summed to result in the weighted average required minimum commercial office intensity. 226 of 545

Step 5: Calculate the Average Maximum Commercial Office Space Intensity Allowed by Zoning in the TOC Area
A jurisdiction must demonstrate that, if it has adopted a maximum commercial office intensity standard, the average maximum allowable zoning intensity for commercial office space in the TOC area meets or exceeds the adopted TOC Policy threshold for its transit tier shown in Table 7.

Table 7: Average Maximum Zoning Intensity Threshold for Commercial Office Development
Level of Transit Service
Threshold for Average
Maximum Zoning Intensity
for Commercial Office
Space (FAR)
Tier 1: Rail stations serving regional centers (i.e., Downtown San Francisco, Downtown Oakland, and Downtown San Jose) 8 or higher
Tier 2: Stop/station served by two or more BART lines or BART and Caltrain
6 or higher
Tier 3: Stop/station served by one BART line, Caltrain, light rail transit, or bus rapid transit
4 or higher
Tier 4: Commuter rail (SMART, ACE, Capitol Corridor, Valley Link) stations, Caltrain stations south of Tamien, or ferry terminals
3 or higher
Notes:

1. For mixed-use projects that include a commercial office component, this figure shall not be less than the equivalent of the applicable allowed or permitted FAR standard.

2. The allowable densities are consistent with PBA 2050 modeling for Strategy EC4 (see Forecasting and Modeling Report, pp. 57-58).

Table 8 is an equivalency table for zoning districts where maximum allowable intensity is expressed using height rather than FAR. The equivalencies in Table 8 are “default” values based on sample projects. Jurisdictions are encouraged to develop their own equivalency tables based on actual projects within the TOC area or nearby, subject to approval by MTC.
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Table 8: Equivalency Table for Maximum Zoning Intensity for Office (only for use in zones with no Floor Area Ratio [FAR] standard)
If there is no FAR standard, but the
maximum height allowed is...
…then use this as the equivalent FAR
Less than 25′ 0.3
25′ to 34.9′ 1.0
35′ to 44.9′ 1.5
45′ to 54.9′ 2.0
55′ to 64.9′ 3.0
65′ to 79.9′ 4.0
80′ to 99.9′ 5.0
Add 1.0 FAR for each 15’ from 100’ upward
Jurisdictions may have zoning districts in which mixed-use or residential projects are allowed a higher maximum intensity than projects that are 100 percent office. For example, a zone may allow a maximum FAR of 2.0 for a 100 percent office project but allow a 4.0 FAR for a residential or mixed-use project. In such instances, the higher maximum may be used in the calculations. This recognizes the intent of the TOC Policy, which is to incentivize zoning that supports higher building intensity in TOC areas.

Once an FAR or FAR equivalent has been assigned to each zone, the weighted average is determined. Figure 4 illustrates the formula for this calculation. This calculation is performed within the TOC Policy Submission Portal.

Figure 4: Calculation of Average Maximum Allowable Commercial Office Zoning Intensity 228 of 545

As shown in Figure 4, to calculate the average maximum allowable commercial office zoning intensity for the TOC area, the total acres in each zone to be included (shown as Zone 1, Zone 2, etc.) is divided by the total acres in the TOC area where office uses are permitted. The sums developed in Step 1 are used for the numerator and the denominator, with any parcels excluded by the jurisdiction subtracted from these figures.

This result is then multiplied by the maximum intensity for that zone. If the zone has no FAR standard but does have maximum heights, use Table 8 to determine the FAR equivalent. This process is repeated for each zoning district in the TOC area where office uses are permitted, and the results for each zone are summed to result in the weighted average required allowable maximum commercial office intensity.10 General Guidance and Special Circumstances for Average Density and Intensity Calculations
Parcels Bisected by the ½-Mile TOC Area Boundary
If a parcel is bisected by the TOC area’s ½-mile boundary, only the portion of the parcel within the ½-mile TOC area buffer is counted toward the weighted average density. At MTC staff’s discretion, the entirety of a bisected parcel can contribute to the TOC area’s weighted average density if local jurisdiction staff demonstrate the importance of the parcel for achieving TOC Policy goals.

Mixed-Use Districts: Parcels to Include
Parcels in mixed-use zoning districts that allow both residential and commercial office as permitted uses should be counted in calculations of average residential density and then again in calculations of average commercial office intensity for each TOC area. No assumptions about the mix of uses are necessary on mixed-use parcels—simply report the minimum and maximum density or FAR permitted by zoning in each case. In cases where zoning establishes lower minimum and maximum FARs for projects that are entirely office than it does for mixed-use or residential projects, the higher minimum and allowable maximum FARs may be used in the calculation of the average commercial office intensity.

SB 6 (2022, Caballero)/AB 2011 (2022, Wicks)
SB 6 and AB 2011 allow residential uses by right in some commercial zoning districts.

For the purposes of the minimum and maximum average density calculations, residential uses should only be counted in a commercial zone if they are expressly listed as a permitted use in the zoning regulations. Jurisdictions are encouraged to amend their zoning codes to list residential as permitted in those zones affected by SB 6 and AB 2011.
10 Maximum FAR (intensity) thresholds are based on the potential maximum for a given site; this may vary from site to site in areas where Precise Plans or Specific Plans are in effect. 229 of 545

Planned Unit Development or Planned Development (PD) Districts For parcels in zoning districts where densities are determined through a subsequent project-level planning process (e.g., Planned Unit Developments), or were previously determined through such a process, the jurisdiction may use the densities and intensities in its General Plan. The jurisdiction also has the option of using any minimum and maximum densities/intensities that were established when the PD was created. To use a minimum density, the relevant Plan must require that development occur at or above the minimum.

Developer Agreements
If a jurisdiction has a developer agreement in place in the TOC area prior to January 1, 2024, and local staff are concerned about the impact on TOC Policy compliance, the jurisdiction should contact MTC staff for assistance. However, jurisdictions will not be able to seek flexibility or exemptions for TOC compliance for developer agreements established after January 1, 2024.

Overlay Zones
For parcels to which a base zone and overlay zone apply, a jurisdiction may include any supplemental density and intensity permitted by the overlay zone when calculating the average maximum allowable density/intensity, provided the overlay permits the residential or office use as a permitted use in a non-discretionary way (comparable to the base zone). If an overlay establishes higher minimum densities than the base zone, the same allowance applies, and the overlay minimum may be used in calculating the average minimum density/intensity.

Incentive Zoning and Density Bonuses
If the jurisdiction can demonstrate that HCD allowed it to rely on the density available through incentive zoning in its certified Housing Element, the jurisdiction may rely on incentive zoning in the density calculations for the TOC Policy. For parcels subject to state density bonus law, the TOC Policy density requirements apply to the base zoning (i.e., state density bonuses cannot be considered for meeting the TOC Policy’s thresholds for minimum density or allowable maximum density).

Section 2: Affordable Housing Production, Preservation, and Protection Policies and Commercial Stabilization Policies Summary of TOC Policy Requirements
A jurisdiction will fulfill the Affordable Housing and Commercial Stabilization requirements by selecting from the menu of options in Table 9 the policies that best meet local needs. To comply, a jurisdiction must adopt at least:
• Two policies for each of the “3Ps”—affordable housing production, preservation, and protection.
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• One policy related to commercial stabilization, unless the jurisdiction can document there are no potential impacts to small businesses and/or community non-profits.

A jurisdiction may meet the requirements with existing adopted policies or as needed, adopt new policies by the TOC Policy compliance deadline. Appendix A describes each of the policy options in more detail and outlines the specific minimum standards a jurisdiction’s policy must meet to comply with TOC Policy requirements. Compliance with TOC housing policy requirements should be completed in conformance with relevant federal and state laws, including a jurisdiction’s duty to affirmatively further fair housing.

For each of the “3Ps” policies selected to comply with TOC Policy requirements, the jurisdiction must also include a brief explanation for how the policy addresses the jurisdiction’s Regional Housing Needs Allocation (RHNA) and/or other housing needs as identified in the jurisdiction’s Housing Element.

Table 9: Affordable Housing and Commercial Stabilization Policy Options Affordable
Housing
Production Policy
Affordable Housing
Preservation Policy
Affordable Housing
Protection and AntiDisplacement Policy
Commercial
Stabilization
Policy
Select at least
2 policies
Select at least
2 policies
Select at least
2 policies
Select at least
1 policy

1. Inclusionary Zoning Funding to Preserve
Unsubsidized Affordable
Housing
“Just Cause” Eviction Small Business
and Non-Profit
Overlay Zone

2. Affordable Housing
Funding
Tenant/Community
Opportunity to Purchase
No Net Loss and Right
to Return to Demolished
Homes
Small Business
and Non-Profit
Preference Policy

3. Affordable Housing
Overlay Zones
Single-Room
Occupancy (SRO)
Preservation
Legal Assistance for
Tenants
Small Business
and Non-Profit
Financial
Assistance
Program

4. Public Land for
Affordable Housing
Condominium
Conversion Restrictions
Foreclosure Assistance Small Business
Advocate Office

5. Ministerial Approval Public/Community Land
Trusts1
Rental Assistance
Program
Blank

6. Public/Community
Land Trusts1
Funding to Support
Preservation Capacity
Rent Stabilization Blank

7. Development
Certainty and
Streamlined
Entitlement Process
Mobile Home
Preservation
Preventing
Displacement from
Substandard Conditions
and Associated Code
Enforcement Activities2
Blank
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Affordable
Housing
Production Policy
Affordable Housing
Preservation Policy
Affordable Housing
Protection and AntiDisplacement Policy
Commercial
Stabilization
Policy

8. Blank Preventing
Displacement from
Substandard Conditions
and Associated Code
Enforcement Activities2
Tenant Relocation
Assistance
Blank

9. Blank Blank Mobile Home Rent
Stabilization
Blank

10. Blank Blank Fair Housing
Enforcement
Blank

11. Blank Blank Tenant Anti-Harassment
Protections
Blank
Notes:

1. This policy may fulfill either the housing production or preservation requirement, but not both.

2. This policy may fulfill either the housing preservation or protection requirement, but not both.

Geography for Policy Applicability
At minimum, policies must apply in all TOC areas. Jurisdictions may choose to apply policies beyond the TOC area(s), which could include the entirety of the jurisdiction (i.e., adopting a jurisdiction-wide policy). Some policies detailed in Appendix A have additional, policy-specific geographic applicability considerations.

Limits on Housing Policies Eligibility to Meet TOC Policy Requirements As noted in Table 9 and Appendix A, there are two cross-cutting policies that appear in multiple places in the menu of options:
• Public/Community Land Trusts can be used to meet the requirement for Production or Preservation policies, but not both.
• Preventing Displacement from Substandard Conditions and Associated Code Enforcement Activities can be used to meet the requirement for Preservation or Protection policies, but not both.

Additionally, three of the Production policy options have overlapping minimum requirements. For these policies, a jurisdiction will only receive credit toward the TOC Policy requirements for one of the overlapping policies and the jurisdiction may elect which policy. As noted in Appendix A, the policies for which this restriction applies are:
• Production Policy 3: Affordable Housing Overlay Zones • Production Policy 5: Ministerial Approval
• Production Policy 7: Development Certainty and Streamlined Entitlement Process
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References to State Laws
In some cases, the descriptions of housing policy options included in the TOC Policy refer to existing state laws. The laws listed may not represent all laws that are relevant to the policy topic. MTC may adjust the requirements for complying with the TOC Policy over time in response to any changes to state law.

Policy Options Requiring Funding Commitments
Several of the affordable housing policy options require a specified financial commitment from a local jurisdiction. The minimum financial commitments reflect the fact that an effective housing program will have minimum staffing and related costs, below which meaningful impact is unlikely. The policy options that require a funding commitment are:
• Production Policy 2: Affordable Housing Funding
• Production Policy 6: Public/Community Land Trusts
• Preservation Policy 1: Funding to Preserve Unsubsidized Affordable Housing • Preservation Policy 5: Public/Community Land Trusts
• Preservation Policy 6: Funding to Support Preservation Capacity • Preservation Policy 8: Preventing Displacement from Substandard Conditions and Associated Code Enforcement Activities (if choosing the option to create a loan/grant program for low-income homeowners)
• Protection Policy 3: Legal Assistance for Tenants
• Protection Policy 4: Foreclosure Assistance
• Protection Policy 5: Rental Assistance Program
• Protection Policy 7: Preventing Displacement from Substandard Conditions and Associated Code Enforcement Activities (if choosing the option to create a loan/grant program for landlords)
• Protection Policy 10: Fair Housing Enforcement
Guidelines for Demonstrating Projected Funding Meets Requirements For any of the policies listed above to comply with the TOC Policy, a jurisdiction must demonstrate it has a program with secured funding above a minimum threshold.11 The minimum funding thresholds represent a total amount for a four-year period aligning with the relevant four-year OBAG cycle. For jurisdictions seeking TOC Policy 11 Housing program funds may be considered secured if they are included in a current budget from a source that is expected to continue and where the use of these funds for the program can be reasonably expected to be approved in subsequent years. The subsequent years’ funding may require future budget approvals or may be dependent on uncertain but expected revenue sources, so long as there is not a known sunset date or other limit. For bond proceeds or other one-time investments, funding can be considered secured if it will be available for investment at the required level at any point in the four-year planning period, expected to align with the OBAG cycle. 233 of 545

compliance for OBAG 4, the four-year funding period is anticipated to correspond to the years 2026 through 2030. The amount contributed can vary by year as long as the total for the relevant four-year OBAG cycle meets the specified target for the jurisdiction.

MTC understands that projections of future funding may be imprecise, and the expectation is that a jurisdiction will provide a reasonable projection of future funding based on the best information available at the time of submitting compliance documentation to MTC.

Guidelines for Counting Existing Funds or Past Expenditures Toward Requirements Jurisdictions that have an existing funding balance for a program corresponding to one of the above policy options may count existing funds toward the required total so long as funds are available for expenditure during the relevant four-year OBAG cycle.

Jurisdictions that have expended funds for a program corresponding to one of the above policy options prior to submitting final documentation for TOC Policy compliance may count expended funds toward the required total so long as at least one of the following conditions is met:
• The funds are used to support a project or program occurring during the relevant four-year OBAG cycle (e.g., funds are committed to an affordable housing project that will be constructed during the OBAG 4 cycle sometime between 2026 and 2030).

AND/OR
• The funds are expended after January 1, 2025.

Jurisdiction Tiers for Funding Amounts
In recognition of the variation in Bay Area jurisdictions’ housing needs and funding capacity, there are seven different tiers to determine the minimum amount of funding a jurisdiction must provide over a four-year period for each policy option requiring a funding commitment (if that policy is selected by the jurisdiction to meet TOC Policy requirements). The tiers are based on the jurisdiction’s combined 2023-2031 RHNA for very low- and low-income units. The tiers, and the associated minimum funding commitment, are shown in Table 10 below. See Appendix B for a list of the jurisdictions in each Funding Tier.

For the policies in the Protection category, the required funding amount by tier can be split among any two of the four policies, but the jurisdiction will only receive credit for one policy. For example, a Tier A jurisdiction could choose to spend $30,000 on fair housing enforcement and $70,000 on a rental assistance program, for a total of $100,000. Alternatively, the jurisdiction could spend $100,000 on a single policy, such as rental assistance. In either scenario, the jurisdiction would receive credit toward one policy for meeting the $100,000 funding threshold for Protection policies. 234 of 545

Table 10: Minimum 4-Year Funding per Policy by Tier
Production Preservation Protection
Tier

2. Affordable
Housing Funding,

6. Public/Community
Land Trusts

1. Funding to Preserve
Unsubsidized Affordable
Housing, 5. Public/Community
Land Trusts

3. Legal Assistance for
Tenants, 4. Foreclosure
Assistance, 5. Rental
Assistance Program, 10. Fair
Housing Enforcement
A $1,000,000 $500,000 $100,000
B $1,400,000 $600,000 $200,000 C $2,000,000 $700,000
D $3,000,000 $900,000 $300,000 E $4,000,000 $1,200,000
F $8,000,000 $2,400,000 $400,000
G $40,000,000 $8,000,000 $1,000,000
Though Preservation Policy 6 (Funding to Support Preservation Capacity) requires a funding commitment, the minimum funding requirement is not a set dollar amount that varies across the tiers listed above. Instead, jurisdictions seeking credit for this policy need to demonstrate their funding programs have secured funding able to support project management staffing for a minimum of four years at approximately 0.5 full-time equivalent (FTE).

Additionally, Preservation Policy 8/Protection Policy 7 (Preventing Displacement from Substandard Conditions and Associated Code Enforcement Activities) have multiple options to achieve compliance, one of which is a loan/grant program for home repairs and addressing habitability issues in rental housing. Though these policy options require the jurisdiction to fund these programs, a minimum funding amount is not specified.

However, the option for Preservation Policy 8 requires a minimum loan/grant of $10,000 per low-income homeowner assisted by the program.

Allowable Sources for Policies Requiring Funding
Funding for some of the policy options must be locally generated, while other policy options do not have restrictions on the sources used to fund a program. The following policies representing investments in the physical production and preservation of affordable housing require funding to be locally generated:
• Production Policy 2: Affordable Housing Funding
• Production Policy 6: Public/Community Land Trusts
• Preservation Policy 1: Funding to Preserve Unsubsidized Affordable Housing • Preservation Policy 5: Public/Community Land Trusts
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The following restrictions and guidelines apply when considering whether a funding source counts as “locally generated”:
• Potential local funding sources include commercial linkage fees, housing impact fees (but see note below if the impact fees are part of an inclusionary zoning ordinance), taxes (such as an employee head tax or real estate transfer tax), local bond measures, successor agency funds, business/gross receipts tax on rental property, and general fund allocations.
• Jurisdictions may include county or regional bond funds expended with the jurisdiction’s participation on affordable housing projects within its boundaries. • Jurisdictions may include grants from philanthropic organizations or private contributions made by businesses or individuals.
• In-kind contributions to developments in the form of fee waivers for building permit fees, impact fees, and other fees can be counted toward the required amount of local affordable housing funding. Staff hours are not eligible for consideration.
• If a jurisdiction is using inclusionary zoning (Production Policy 1) for the TOC Policy’s production requirement, funding generated by collecting in-lieu fees from inclusionary zoning cannot be counted toward the funding minimums. If the jurisdiction has inclusionary zoning but does not use it to satisfy the TOC Policy's affordable housing production requirement, the funding generated by collecting in-lieu fees may be counted.
• Federal and state funding (such as HOME/CDBG or PLHA) that is passed through a jurisdiction is not counted as local funding.

The following policy options representing programmatic investments do not have restrictions on how a program is funded:
• Preservation Policy 6: Funding to Support Preservation Capacity • Preservation Policy 8: Preventing Displacement from Substandard Conditions and Associated Code Enforcement Activities (if choosing the option to create a loan/grant program for low-income homeowners)
• Protection Policy 3: Legal Assistance for Tenants
• Protection Policy 4: Foreclosure Assistance
• Protection Policy 5: Rental Assistance Program
• Protection Policy 7: Preventing Displacement from Substandard Conditions and Associated Code Enforcement Activities (if choosing the option to create a loan/grant program for landlords)
• Protection Policy 10: Fair Housing Enforcement
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Option for Local Jurisdiction Collaboratives to Meet TOC Policy Requirements MTC will allow implementation of affordable housing and commercial stabilization policies through collaboratives that involve more than one jurisdiction partnering to manage policy implementation. Implementation through a collaborative is intended to reduce administrative costs for local jurisdictions and increase efficiency of program delivery. This option may be particularly beneficial for smaller jurisdictions (those in Tiers A to D above) or medium-sized jurisdictions (those in Tiers E and F above).

Implementing a policy through a collaborative generally does not change the minimum requirements for each participating jurisdiction. However, a jurisdiction can receive a 10 percent reduction in the funding requirement for its individual financial contribution to collaborative implementation. For example, a city that transfers funds to its county to administer a tenant rental assistance program can contribute 10 percent less than the funding threshold in Table 10, as long as the county operates the program in accordance with the standards in Appendix A.

Target Policies for Collaboratives
MTC specifically anticipates that the policies below will benefit from collaborative implementation. However, jurisdictions may use a collaborative to implement any of the affordable housing and commercial stabilization policies, subject to MTC approval.

Production: 2. Affordable Housing Funding and 6. Public/Community Land Trusts.

Preservation: 1. Funding to Preserve Unsubsidized Affordable Housing, 5.

Public/Community Land Trusts, 6. Funding to Support Preservation Capacity, and 8.

Preventing Displacement from Substandard Conditions and Associated Code Enforcement Activities
Protection: 3. Legal Assistance for Tenants, 4. Foreclosure Assistance, 5. Rental Assistance Program, 7. Preventing Displacement from Substandard Conditions and Associated Code Enforcement Activities, and 10. Fair Housing Enforcement Commercial Stabilization: 3. Small Business and Nonprofit Financial Assistance Program
Any jurisdiction intending to implement a TOC housing policy through a collaborative must provide MTC with documentation on the roles and responsibilities for the collaborative and jurisdiction, as well as a schedule of expected funding to the collaborative. MTC may request additional information on collaboratives. 237 of 545

Relationship to HCD’s Prohousing Program
The California Department of Housing and Community Development has a Prohousing Designation Program that provides incentives to jurisdictions that have policies to support increased housing production. While there are similarities between the requirements for a Prohousing Designation and the TOC Policy, there is not sufficient consistency between the policy options and other requirements for a jurisdiction that has received the Prohousing Designation from HCD to automatically meet TOC Policy requirements for affordable housing production policies.

Table 11 provides information on which Prohousing Designation policies correspond to the affordable housing production policy options for the TOC Policy. If jurisdictions are currently applying for or planning to apply for HCD’s Prohousing Designation, they should consider committing to policies in their Prohousing Designation application that would also achieve TOC Policy compliance. Importantly, policies adopted for the Prohousing Designation would also need to meet the minimum requirements detailed in Appendix A of the TOC Policy Administrative Guidance.

Table 11: Overlap Between HCD Prohousing and TOC Policy Affordable Housing Production Policy Options
Affordable Housing
Production Policy Options for
TOC Policy Policy Options for HCD Prohousing Designation Production Policy 2: Affordable Category 4A: Establishment of local housing trust funds Housing Funding Category 4E: Directed residual redevelopment funds to affordable housing.

Blank Category 4F: Development and regular (at least biennial) use of a housing subsidy pool, local or regional trust fund, or other similar funding source.

Blank Category 4G: Prioritization of local general funds for affordable housing.

Production Policy 3: Affordable
Housing Overlay Zones
Category 1D: Density bonus programs which exceed
statutory requirements by 10 percent or more.

Production Policy 4: Public Land
for Affordable Housing
Category 4C: A comprehensive program that complies with the Surplus Land Act (Gov. Code, § 54220 et seq.) and that makes publicly owned land available for affordable housing, or for multifamily housing projects with the highest feasible percentage of units affordable to lower income households.

A qualifying program may utilize mechanisms such as land donations, land sales with significant write-downs, or belowmarket land leases.

Production Policy 5: Ministerial
Approval
Category 2A: Establishment of ministerial approval
processes for a variety of housing types, including singlefamily and multifamily housing. 238 of 545

Affordable Housing
Production Policy Options for
TOC Policy Policy Options for HCD Prohousing Designation Production Policy 7:

Development Certainty and
Category 2D: Establishment of permit processes that take less than four months.

Streamlined Entitlement
Process
Category 2E: Absence or elimination of public hearings for projects consistent with zoning and the general plan.

Blank Category 2F: Establishment of consolidated or streamlined permit processes that minimize the levels of review and approval required for projects, and that are consistent with zoning regulations and the general plan.

Blank Category 2L: Limitation on the total number of hearings for any project to three or fewer.

Submitting Required Documentation
For each policy a jurisdiction selects to meet the minimum number required for TOC Policy compliance, the jurisdiction must provide a document or website link that provides the adopted policy or relevant municipal code section. The jurisdiction must also confirm that it meets the minimum requirements established for each policy, which are described in more detail in Appendix A. Local jurisdictions must submit all documents and other relevant information in the TOC Policy Submission Portal.

Section 3: Parking Management
Summary of TOC Policy Requirements
The purpose of the TOC Policy parking management requirements is to further support reducing automobile trips and prioritizing the limited land area near transit for other shared transportation modes and active transportation. Parking management is a key complement to residential and commercial density increases that support higher transit ridership on the region’s existing and planned fixed-guideway transit investments.

For compliance with the TOC Policy, MTC will focus on a jurisdiction’s compliance with the parking standards (Table 12). To support limits on off-street parking for new development, one or more additional policies or programs that address parking management must also be in place. These may be one of the policies or programs listed below under Complementary Policies for Parking Management, or another policy or program aligned with the intent of the parking management requirement. For policies or programs that are not one of those listed below, a jurisdiction must explain how the policy or program addresses parking demand management in the TOC area. 239 of 545

Parking Standards for New Residential or Commercial Development Off-street vehicle parking standards for new residential or general and neighborhoodserving commercial development (e.g., office, retail, and service businesses) must meet the applicable standards for its Transit Tier listed in Table 12, including:
• No minimum automobile parking requirement in most Transit Tiers for new residential or commercial development.12
• For parcels on which residential development13 is allowed:
o The applicable maximum automobile parking per dwelling unit ratio o At least one secure bicycle parking space per dwelling unit. • For parcels on which commercial development is allowed:
o The applicable maximum automobile parking per 1,000 square foot ratio. o At least one secure bicycle parking space per 5,000 occupied square feet for commercial office.
• For parcels on which both residential and commercial development are allowed:
o The sum of the applicable maximum automobile parking per dwelling unit and the applicable maximum automobile parking per 1,000 square feet. o At least the sum of one secure bicycle parking space per dwelling unit plus one secure bicycle parking space per 5,000 occupied square feet for commercial office.
• Explicitly allow unbundled parking in adopted plans, policies, and/or municipal code or ordinance.
14,15
• Explicitly allow shared parking between different land uses in adopted plans, policies, and/or municipal code or ordinance.
16 12 The TOC Policy does not have a requirement related to minimum parking for Tier 4 TOC areas. However, jurisdictions must comply with applicable state law prohibiting parking minimums, such as AB 2097. 13 Residential developments permitted in commercial zones through AB 2011 should follow the applicable TOC standards for residential development, not commercial development. 14 Unbundling parking means separating the cost of leasing a parking space from the sale or rental price of residential and commercial uses.
15 For jurisdictions in Alameda County or Santa Clara County, AB 1317 (2023) requires unbundled parking in new residential developments with 16 or more units that are issued a certificated of occupancy after January 1, 2025. See California Civil Code Section 1947.1 for more information. 16 AB 894 (2023) requires jurisdictions to allow entities with underutilized parking to share their underutilized parking spaces with the public, local agencies, or other entities, if those entities submit a shared parking agreement. See California Government Code Section 65863.1 for more information. 240 of 545

Table 12: TOC Policy Parking Management Requirements
Level of Transit Service
New Residential
Development
New Commercial
Development
Tier 1: Rail stations serving
regional centers (i.e.,
Downtown San Francisco,
Downtown Oakland, and
Downtown San José)
Parking minimum
requirements not allowed.

Parking maximum of 0.375
spaces per unit or lower.

Parking minimum requirements
not allowed.

Parking maximum of 0.25
spaces per 1,000 square feet or
lower.

Tier 2: Stop/station served by
two or more BART lines or
BART and Caltrain
Parking minimum
requirements not allowed.

Parking maximum of 0.5
spaces per unit or lower.

Parking minimum requirements
not allowed.

Parking maximum of 1.6 spaces
per 1,000 square feet or lower.

Tier 3: Stop/station served by
one BART line, Caltrain, light
rail transit, or bus rapid transit
Parking minimum
requirements not allowed.

Parking maximum of 1.0
spaces per unit or lower.

Parking minimum requirements
not allowed.

Parking maximum of 2.5 spaces
per 1,000 square feet or lower.

Tier 4: Commuter rail
(SMART, ACE, Capitol
Corridor, Valley Link) stations,
Caltrain stations south of
Tamien, or ferry terminals
Parking maximum of 1.5
spaces per unit or lower.

Parking maximum of 4.0 spaces
per 1,000 square feet or lower.

All Tiers Minimum of 1 secure
bicycle parking17 space per
dwelling unit.
18 Minimum of 1 secure bicycle
parking space per 5,000 square
feet for commercial office.

The TOC Policy’s off-street parking standards do not supersede other applicable requirements for parking for people with disabilities that are required by the California Building Code, or other state or federal laws, or off-street parking for deliveries.

While not specified in the TOC Policy, in addition to accommodating conventional bicycles in the bicycle parking requirement, bicycle parking spaces should consider specifications that will also accommodate cargo and electric bicycles (e-bikes).

AB 2097 and TOC Policy Parking Management Requirements
The TOC Policy and AB 2097 have similar provisions with respect to parking minimums.

Broadly speaking, AB 2097 prohibits a public agency from imposing or enforcing parking minimums on any residential, commercial, or other development project located within a ½-mile of a major transit stop. For the purposes of TOC Policy compliance, 17 Secure bicycle parking should follow the Association of Pedestrian and Bicycle Professionals’ Essentials of Bike Parking Guidelines as well as HCD’s forthcoming update to the California Green Building Standards Code, per AB 2863 (2022).
18 For a single building with more than 100 units, the jurisdiction can apply a ratio of one secure bicycle parking space for every four units to the number of units above 100. For example, a 140-unit building would need 110 bicycle parking spaces (100 + 0.25*40).
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MTC staff will defer to local jurisdictions’ interpretation of applicable state law (i.e., Government Code Section 65863.2) to determine which parcels are subject to the TOC Policy’s parking management requirements. In other words, the parcels in a TOC area that a jurisdiction has determined are subject to Government Code Section 65863.2 must also meet all TOC Policy parking management requirements described above.

AB 2097 has an exemption process where a jurisdiction can impose minimum parking standards. For TOC Policy compliance, MTC encourages, but does not require, jurisdictions to forgo this exemption process.

Complementary Policies for Parking Management
In addition to complying with the off-street parking standards, a jurisdiction must adopt at least one of the five policies or programs from MTC/ABAG’s Parking Policy Playbook listed below to address transportation demand management (TDM) and curb management in TOC areas that complement the Policy’s required parking standards:

1. TDM Policy for New Development: require provision and enforcement of transportation demand management (TDM).

2. Curb Strategy/Management: Priority curb access based on variable need.

3. Parking Benefit District (PBD): Invest parking revenues into a PBD to fund streetscape, safety, and TDM programs.

4. Demand-Responsive Pricing: Price parking according to level of convenience and demand.

5. Priced Parking: Adding priced parking where it used to be free.

TDM and curb-management policies or programs may apply to either the TOC area or jurisdiction-wide.

Submitting Required Documentation
Parking Standards for New Residential or Commercial Development A jurisdiction must document its off-street parking requirements for new residential and commercial uses and its requirements for secure bicycle parking for new residential and office development in locations subject to the TOC Policy, including the citation for the municipal code or ordinance codifying such requirements.

Vehicle Minimum Parking Standards
A jurisdiction has three options for meeting the TOC Policy’s requirement related to minimum parking standards:

1. Confirmation of Compliance with AB 2097: Local jurisdiction staff can attest that their jurisdiction complies with AB 2097. A jurisdiction that complies with AB 2097 is deemed in compliance with the TOC Policy’s requirement related to minimum parking standards.
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2. Resolution of Compliance with AB 2097: A jurisdiction is encouraged, but not required, to pass a resolution confirming compliance with AB 2097 and stating it will not seek exemptions from AB 2097 for Tier 1, Tier 2, and Tier 3 TOC areas.19

3. Ordinance to Remove Parking Minimums: A jurisdiction may adopt an ordinance that removes parking minimum requirements for Tier 1, Tier 2, and Tier 3 TOC areas. This prohibition could also be incorporated into an overlay zone or changes to the jurisdiction’s use table or chapter that is adopted to address the TOC Policy’s parking maximums (see below).

Vehicle Maximum Parking Standards
A jurisdiction must show that its adopted parking maximums cover at least the ½-mile TOC area (if the policy does not apply jurisdiction-wide) and meet the TOC Policy’s standards for the TOC area’s transit tier. If the jurisdiction’s parking maximums are not expressed as parking spaces per unit (e.g., instead there are parking maximums per bedroom), a jurisdiction may propose an alternative method of demonstrating compliance subject to MTC staff approval. This alternative method may include, but is not limited to, proposing an equivalency calculation that translates the local maximum into spaces per unit.

There are two approaches for meeting the TOC Policy’s maximum parking standards:

1. Adopt an overlay zone or updates to a parking use table or chapter: A jurisdiction must have an adopted policy that includes parking maximums for residential and commercial uses that meet TOC standards and that clearly defines the geography to which the standards apply. Defining the geography and maximum parking standards can be done by creating an overlay zone or by amending the jurisdiction’s parking use table or chapter for development within TOC areas. As the TOC Policy parking maximums vary based on a TOC area’s transit tier, a jurisdiction with multiple TOC areas may need to specify several combinations of geography/parking maximums. Optionally, a jurisdiction may choose to include language that removes parking minimum requirements for Tier 1, Tier 2, and Tier 3 TOC areas (as described in Option 3, above).

A local jurisdiction must provide municipal code citations for the adopted overlay zone or parking use table/chapter that clearly demonstrate that the vehicle parking maximums for residential and commercial uses meet TOC thresholds for the TOC area’s transit tier and that those standards apply to, at minimum, the entire ½-mile TOC area.

2. Adopt a parking district, station area cap or other methods that limit parking: Standards may apply to individual projects or may be met through the creation of a parking district that provides shared vehicle parking for multiple land 19 Per TOC policy, a jurisdiction may require parking minimums in Tier 4 TOC areas. 243 of 545

uses within an area. For example, a specific or area plan may determine an overall total amount of new, off-street parking that may be constructed in the area. Some development projects may provide more off-street parking, while others may provide less off-street parking, or parking may be shared between multiple new uses. In such cases, the total amount of new off-street parking to be built should be equivalent to or less than the TOC Policy’s parking standards.

For parking districts or other types of area-wide approaches to parking management, a jurisdiction must provide any relevant plans or policies as well as calculations showing the approach will result in creation of the same or less new off-street parking than the TOC Policy’s parking maximum requirements. The calculations could use assumptions about future buildout (e.g., from a recently completed plan and/or EIR) and the parking permitted in the district to allow for a comparison to the TOC Policy parking maximum requirements.

Minimum Bicycle Parking Standards
A local jurisdiction must provide municipal code citations for an adopted overlay zone or parking use table/chapter that clearly demonstrate that the minimum bicycle parking standards for residential and commercial office uses meet TOC thresholds for, at minimum, the entire ½-mile TOC area.

Unbundled and Shared Parking
For unbundled and shared parking, a local jurisdiction must document and provide citations for the adopted plans, policies, and/or municipal code or ordinance that explicitly allow unbundled and shared parking. Further detail on unbundled and shared parking is provided in the MTC/ABAG Parking Policy Playbook.

Complementary Policies for Parking Management
A local jurisdiction must also document and provide citations for the adopted plans, policies, and/or municipal code or ordinance for one or more of the policies or programs from the MTC/ABAG Parking Policy Playbook listed above that apply either to the geographic area where the TOC Policy applies or jurisdiction-wide.

Available Resources for Parking Management
The MTC/ABAG Parking Policy Playbook provides detailed guidance and practical tools, such as sample policy language, about how to implement policy changes related to parking, transportation demand management (TDM), and curb management.
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Section 4: Station Access and Circulation
Summary of TOC Policy Requirements
In coordination with transit agencies and other mobility service providers, community members, and other stakeholders, a jurisdiction must complete the following in all TOC areas:
• Adopt a jurisdiction-wide Complete Streets Policy, following the guidance provided in the OBAG 2 Complete Streets Policy Elements. • Prioritize implementation of “All Ages and Abilities” active transportation projects on the regional Active Transportation Network (as stated in the MTC Complete Streets Policy20) and/or active transportation projects from Community Based Transportation Plans (if applicable) within the TOC area.

Prioritization is demonstrated using a jurisdiction’s Capital Improvement Program (CIP) or other adopted plans/programs listing the jurisdiction’s implementation priorities.
• Complete an access gap analysis and accompanying capital and/or service improvement program for station access for destinations within a 10-minute walk (accounting for differences in travel speed and time for people who use wheelchairs or other mobility aids) and 15-minute trip via active transportation, shared mobility, and bus.
21 This requirement can be met through a separate
study/analysis or as part of an existing specific or area plan, active transportation plan, transit agency station access plan, or other transportation plan or study that, at a minimum, includes the following:
o The geographic area that can currently be accessed via a 10- or 15- minute trip by these modes, with particular focus on access to Equity Priority Communities and other significant origins/destinations. o Infrastructure and/or service improvements that would expand the geographic area that can be accessed via a 10- or 15-minute trip by these modes.
o Incorporation of recommended improvements into a capital improvement or service plan for the local jurisdiction and/or transit agency (if applicable). • As all TOC areas are also MTC Mobility Hub locations, identify opportunities for Mobility Hub planning and implementation as described in the Mobility Hub Implementation Playbook. For transit lines where stops or stations are more closely spaced (e.g., less than ½-mile apart) such as light rail or bus rapid transit facilities, planning and implementation for Mobility Hubs may be done on a corridor-wide basis rather than for each individual stop or station.

Additionally, recognizing that not all light rail or bus rapid transit stops/stations 20 See MTC Resolution No. 4493. 21 Generally speaking, this analysis should consider a three-mile radius around the station for access by all these modes. A 10-minute walk typically equates to a half-mile walk shed, while a 15-minute bike trip represents a one-and-a-half-mile bike shed.
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will receive enhancement treatments, locations that are transfer points for at least two different transit systems or major activity centers should be the focus.

Submitting Required Documentation
Complete Streets:

A jurisdiction with an adopted Complete Streets (CS) Policy is considered compliant for the complete streets policy requirement. MTC has documented jurisdiction CS Policies through its One Bay Area Grant (OBAG) 2 Program, most recently compiled in 2015. If a jurisdiction has updated its CS Policy since 2015, it should submit or include a link to the updated CS Policy.

A jurisdiction submitting a transportation project for regional funding that is located in the public right of way must be compliant with MTC’s updated Complete Streets Policy, Resolution 4493. This requires the submission of a Complete Streets Checklist. This is project specific and CS Checklist submission is not needed for TOC Policy Compliance.

Project Prioritization/Implementation:

To demonstrate that it has prioritized implementation of active transportation projects within the TOC area, a jurisdiction must submit at least one of the following:
• Capital Improvement Program with relevant projects identified. • Projects funded or submitted for funding (e.g., OBAG, ATP, etc.) within the past five years.
• Other funding or implementation plans that include relevant projects.

Access Gap Analysis:

To demonstrate that it has completed analysis or planning with a focus on improving 10- to 15-minute access to/from the TOC area (and connecting to Equity Priority Communities, if applicable), emphasizing capital or service improvements, a jurisdiction must submit at least one of the following:
• Adopted PDA, Specific, Precise or Area plan(s) that include a station access or circulation element (submit access/circulation element only, or include link to adopted plan with specific page numbers that reference access/circulation element).
• Transit agency station access plans.

However, if these plans have not been completed for the TOC area, a jurisdiction may submit:
• Adopted active transportation, bicycle or pedestrian plan(s) that include recommended access improvements to/from the TOC area.
• Applicable sections of General Plan Circulation Element that highlight specific elements that guide or inform station access improvements. 246 of 545

Jurisdiction-wide or county-wide documents such as active transportation, bicycle, pedestrian plans or General Plan Circulation Elements may only be submitted as evidence of compliance if they include details for specific improvements within the TOC area and should be noted upon submittal. MTC staff will work with local jurisdictions to streamline the process for verifying compliance in locations with overlapping TOC areas.

Mobility Hubs:

To comply with the Mobility Hub planning and implementation requirement, jurisdictions must submit any current plans or projects that enhance the TOC area as a community anchor enabling travelers of all backgrounds and abilities to access transit and other forms of shared transportation. Enhancements may include (but are not limited to) safety improvements, bike parking, electric charging infrastructure (bikes, scooters, carshare), public realm improvements (e.g., lighting, green infrastructure), information improvements (e.g., wayfinding, real-time information) or any other active transportation access improvements within the TOC area.

If the documents submitted to comply with the access requirements listed above contain plans for or implement these enhancements, they must be specifically noted to comply with this Mobility Hubs requirement; OR
List any current or prior funding application for MTC’s Mobility Hub Program for the TOC area. Include the date of application submission.

MTC staff will work with local jurisdictions to streamline the process for verifying compliance in locations with overlapping TOC areas.

Available Resources for Station Access and Circulation
Complete Streets and Active Transportation
• MTC’s Complete Streets webpage
• MTC’s Regional Active Transportation Plan webpage
• MTC’s Community-Based Transportation Plans webpage
Access Gap Analyses
• San Mateo Transit-Oriented Development Pedestrian Access Plan • Irvington Station Area Plan, Access & Mobility Chapter • Berkeley El Cerrito Corridor Access Plan
Mobility Hubs
• MTC’s Mobility Hubs webpage
• MTC’s Mobility Hubs Technical Assistance webpage
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Appendix A: TOC Policy Housing and Commercial
Stabilization Policy Requirements
Affordable housing policies are typically designed for specific income groups. MTC recognizes that different income and rent limits are imposed by different state and federal programs, and it is not the intent of the TOC Policy to create new requirements.

This document generally refers to policies intended to target “lower-income” and/or “moderate-income” households. For reference, state law (Health and Safety Code, section 50079.5) defines “lower-income” as households earning less than 80% of Area Median Income (AMI), and state law (Health and Safety Code, section 50093) defines “moderate-income” as households earning between 80% and 120% of AMI. Where the TOC Policy or this document discuss policies serving lower-income households, jurisdictions are free to design policies that serve any income group earning less than 80% of AMI, including very low-income (30% to 50% of AMI) and extremely low-income (0% to 30% of AMI) households. Similarly, policies serving lower- and moderate-income households can serve any income group below 120% of AMI.

I. Affordable Housing Production Policy Options
To comply with the TOC Policy, a jurisdiction must adopt at least two of the affordable housing production policies listed below:
• Production Policy 1: Inclusionary Zoning
• Production Policy 2: Affordable Housing Funding
• Production Policy 3: Affordable Housing Overlay Zones • Production Policy 4: Public Land for Affordable Housing • Production Policy 5: Ministerial Approval
• Production Policy 6: Public/Community Land Trusts (This policy may fulfill either the housing production or preservation requirement, but not both.) • Production Policy 7: Development Certainty and Streamlined Entitlement Process.

A jurisdiction may meet the requirements with existing adopted policies, or as needed, adopt new policies by the TOC Policy compliance deadline. At minimum, policies must apply in TOC areas. Jurisdictions may choose to apply policies beyond the TOC area(s), which could include the entirety of the jurisdiction (i.e., adopting a jurisdictionwide policy). See Section 2 of the guidance document for more information about these requirements.
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Production Policy 1: Inclusionary Zoning
Description from TOC Policy Resolution: Requires that 15% of units in new residential development projects above a certain number of units be deed-restricted affordable to low-income1 households. A lower percentage may be adopted if it can be demonstrated by a satisfactory financial feasibility analysis that a 15% requirement is not feasible.

Purpose
Inclusionary zoning requires new residential construction projects to contribute to a jurisdiction’s affordable housing stock. Inclusionary zoning can enable jurisdictions to leverage private dollars for affordable housing, bringing affordable units online faster and in greater numbers than relying exclusively on public funding streams. Inclusionary zoning also helps ensure new affordable housing units are developed in the same neighborhoods as new market-rate development, furthering the goal of economic integration.

Typically, a city or county will adopt an inclusionary zoning policy to both add more affordable homes to its inventory and ensure lower-income households can live in highopportunity neighborhoods where they would otherwise be priced out. Inclusionary zoning can be a method to address historic patterns of exclusion and segregation by ensuring housing is available for lower-wage workers, guarding against concentrations of poverty and affluence, and making it possible for lower-income households to live in higher-resource neighborhoods. An effective inclusionary zoning policy will establish affordability requirements and standards for affordable units, as well as provide incentives and compliance alternatives for developers.

Relevant State Law
AB 1505 (2017)
AB 1505 (2017) outlines state requirements for a jurisdiction’s inclusionary zoning ordinance. The law requires jurisdictions to allow alternative means to comply with requirements, such as in-lieu fees, building affordable units off-site, or dedicating land for the construction of affordable housing. Under certain circumstances, the law also allows HCD to review a local ordinance that requires more than 15% affordable units.2 Requirements for TOC Policy Compliance
To comply with the TOC Policy, a jurisdiction’s inclusionary zoning policy must meet the following minimum requirements:
1 In some contexts, state and federal agencies use the term “low-income” to refer to the more specific category of households earning between 50% of AMI and 80% of AMI. However, the use of the term “lowincome households” in MTC Resolution No. 4530 is assumed to be synonymous with the broader category of “lower-income,” or all households below 80% of AMI. 2 For more information about Assembly Bill (AB) 1505 (2017) and the state legal framework governing inclusionary zoning policies, see this guidance provided by the California Department of Housing and Community Development.
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• The policy must apply to newly constructed residential or mixed-use residential projects. The policy must apply to ownership and rental units. • The policy may exempt properties with fewer than 11 units, student housing, 100% affordable housing, senior housing, or other special housing types. • The policy must require at least 15% of units be deed-restricted affordable housing units.
• For rental units, the policy’s affordability requirements must require the income mix of affordable units to average out to 80% of AMI or less, with no affordable rental units available to households above 120% of AMI. For ownership units, the policy’s affordability requirements must require the income mix of affordable units to average out to 120% of AMI or less, with no affordable ownership units available to households above 150% of AMI. Jurisdictions should require deeper levels of affordability where feasible or through offering additional incentives. A policy with an income mix that does not meet this standard will not be considered compliant, even if the policy was based on a financial feasibility analysis. • The policy may require less than 15% affordable units if:
o The jurisdiction provides an analysis showing that an alternative requirement is economically equivalent to the 15% standard (for example, a policy that required fewer units at a deeper affordability level, such as 10% of units affordable to households earning less than 50% of AMI).

OR
o A financial feasibility analysis (completed within 24 months of the date that inclusionary zoning policy was adopted) found that a 15% requirement was not feasible.
• The policy may require more than 15% affordable units.3 • Affordable units must have recorded documents that set binding maximum rent or price restrictions to ensure affordability. These requirements must restrict rents and sales prices to affordable levels as defined by the rules of any applicable state or federal affordable housing program. These restrictions must also ensure affordability for at least 55 years for rental housing or at least 45 years for ownership housing.
• Per state law, inclusionary zoning must allow for alternative means of compliance (e.g., paying in-lieu fees to support affordable housing development, building affordable units off-site, or dedicating land for the construction of affordable housing). For compliance with the TOC Policy, a jurisdiction with an in-lieu fee that typically results in a payment of less than $100,000 per affordable unit, must provide a justification for why the fee will result in at least as many restricted affordable housing units as would be required of a project providing onsite units. 3 State Law (AB 1550) allows HCD to request a feasibility study for requirements greater than 15%, but does not require that such a feasibility study be completed prior to adoption of the ordinance. 250 of 545

Submitting Additional Required Documentation
In addition to the standard submission requirements, a jurisdiction must submit:
• If the inclusionary zoning policy requires less than 15% affordable units, an analysis showing economic equivalency of the alternative standard (e.g., fewer units at deeper levels of affordability) or a financial feasibility analysis showing a 15% requirement is not feasible for the jurisdiction’s local market conditions. MTC has developed a spreadsheet illustrating the analysis of economic equivalency.

Jurisdictions may fill in the template spreadsheet or create/commission a comparable analysis to show that the jurisdiction’s requirements are comparable to the cost of providing 15% of rental units affordable to 80% of AMI and/or 15% or ownership units to 120% of AMI.
• If the policy allows payment of an in-lieu fee, documentation (e.g., municipal ordinance citation or program guidelines) demonstrating that the fee will typically exceed $100,000 per required onsite affordable unit. MTC has developed a spreadsheet to help determine whether an in-lieu fee is equivalent to at least $100,000 per require onsite affordable unit. If the in-lieu fee paid per affordable unit is typically less than $100,000, the jurisdiction must provide an analysis showing the in-lieu fee will be sufficient to produce at least as many restricted affordable housing units as the number that would have been required for onsite compliance.
• A management plan that outlines procedures for annual monitoring to ensure residents are income-eligible and rents are consistent with program guidelines.

Production Policy 2: Affordable Housing Funding
Description from TOC Policy Resolution: Dedicated local funding for production of deedrestricted affordable housing.

Purpose
Dedicated, ongoing funding provided by local jurisdictions for the creation of deedrestricted affordable housing is a central piece of a comprehensive and inclusive affordable housing strategy. In addition to helping to make projects financially feasible, local financial support is a critical factor in securing outside subsidy. Without local funding, it can be difficult for projects to compete for the necessary state and federal funding. These funds are often collected into a housing trust fund or other dedicated account to be dispersed as subsidies and/or low-cost loans to developers. Effective affordable housing funding programs will pool and disperse funds, which are made available to developers through a single application process.

Requirements for TOC Policy Compliance
To comply with the TOC Policy, a jurisdiction’s affordable housing funding program must meet the following minimum requirements:
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• The jurisdiction must have a program with secured funding4 that provides ongoing allocations to the program at or above the level identified in Appendix B. The amount contributed can vary by year as long as the total for the relevant four-year OBAG cycle meets the specified target for the jurisdiction. • Funding must be locally generated.
o Potential local funding sources include commercial linkage fees and housing impact fees, taxes (such as an employee head tax or real estate transfer tax), local bond measures, successor agency funds, business/gross receipts tax on rental property, and general fund allocations.
o Jurisdictions may include county or regional bond funds expended with the jurisdiction’s participation on affordable housing projects within its boundaries.
o Jurisdictions may include grants from philanthropic organizations or private contributions made by businesses or individuals.
o In-kind contributions to developments in the form of fee waivers for building permit fees, impact fees, and other fees can also be counted toward the required amount of local affordable housing funding. Staff hours are not eligible for consideration.
o If a jurisdiction is also using inclusionary zoning (Production Policy 1) for the TOC Policy’s production requirement, funding generated by collecting in-lieu fees from inclusionary zoning cannot be counted toward the funding minimums required for this affordable housing funding policy (Production Policy 2). If the jurisdiction has inclusionary zoning but does not use it to satisfy the TOC Policy's affordable housing production requirement, the funding generated by collecting in-lieu fees may be counted towards satisfying Production Policy 2.
o NOTE: Federal and state funding (such as HOME/CDBG or PLHA) that is passed through a jurisdiction is not counted as local funding. • Jurisdictions that have an existing balance in a housing funding program when submitting final documentation for TOC Policy compliance may count existing funds toward the required total so long as funds are available for expenditure during the four-year planning period (anticipated to align with the OBAG cycle). • Jurisdictions that have committed affordable housing funds prior to submitting final documentation for TOC Policy compliance may count expended funds 4 Secured Funding: Housing program funds may be considered secured if they are included in a current budget from a source that is expected to continue and where the use of these funds for the program can be reasonably expected to be approved in subsequent years. The subsequent years’ funding may require future budget approvals or may be dependent on uncertain but expected revenue sources, so long as there is not a known sunset date or other limit. For bond proceeds or other one-time investments, funding can be considered secured if it will be available for investment at the required level at any point in the four-year planning period, expected to align with the OBAG cycle. 252 of 545

toward the required total so long as at least one of the following conditions is met:
o The funds are used to support a project or program occurring during the relevant four-year OBAG cycle (e.g., funds are committed to an affordable housing project that will be constructed during the OBAG 4 cycle sometime between 2026 and 2030).

AND/OR
o The funds are expended after January 1, 2025.
• The program must establish a standard set of financing terms, including affordability requirements. The program’s affordability requirements must define affordable units as rental housing available to lower-income households earning 80% of AMI or less, and ownership housing to lower- and moderate-income households earning 120% of AMI or less. Jurisdictions should incentivize deeper levels of affordability where feasible or through offering additional incentives. • Affordable units must have recorded documents that set binding maximum rent or price restrictions to ensure affordability. These requirements must restrict rents and sales prices to affordable levels as defined by the rules of any applicable state or federal affordable housing program. These restrictions must also ensure affordability for at least 55 years for rental housing and at least 45 years for ownership housing.

Submitting Additional Required Documentation
In addition to the standard submission requirements, a jurisdiction must submit:
• A copy of the program’s financing terms if they are not included in an ordinance or other documents establishing the program. Financing terms must indicate the income limits/affordability levels and required affordability period, and the terms must identify a legal mechanism for enforcement of affordable housing requirements (e.g., deed restriction, regulatory agreement, etc.). • Documents demonstrating the jurisdiction has secured funding that meets the minimum requirements for being considered “secured.”
• A schedule of expected funding allocated to the program over the four-year period.

MTC understands that projections of future funding may be imprecise, and the expectation is that a jurisdiction will provide a reasonable projection of future funding based on the best information available at the time of submitting compliance documentation to MTC. At the end of the four-year planning period (expected to align with the OBAG cycle), MTC will expect documentation of actual funding received by the program and invested in projects, which may differ from initial projections.
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Production Policy 3: Affordable Housing Overlay Zones
Description from TOC Policy Resolution: Area-specific incentives, such as density bonuses and streamlined environmental review, for development projects that include at least 15% of units as deed-restricted affordable housing; exceeds any jurisdiction-wide inclusionary requirements or benefits from state density bonus.

Purpose
Changes to local land use law and other regulatory reforms can both enable and incentivize the construction of affordable housing. Zoning incentives can increase the cost-effectiveness of building affordable homes. An Affordable Housing Overlay Zone (AHOZ) is a general term reflecting a variety of potential approaches that provide a package of incentives to developers who include units in their projects that are affordable to lower-income households. They are called “overlay” zones because they layer on top of established base zoning regulations, offering additional benefits to projects that increase the supply of affordable homes. AHOZ incentives may include increased density, relaxed height limits, reduced parking requirements, fast-tracked permitting, and exemptions from mixed-use requirements.

AHOZs are a mechanism through which cities can incentivize affordable housing development to specific zones. In addition, jurisdictions can expedite the approval and permit processes for affordable housing projects. Unlike inclusionary zoning policies that require either the building of affordable housing or the payment of an in-lieu fee, AHOZs are optional and incentive-based, offering developers key concessions in exchange for producing affordable housing. An effective AHOZ policy will provide meaningful incentives to projects that provide affordable housing and establish minimum affordability requirements at levels that reflect the jurisdiction’s need.

Relevant State Laws
State Density Bonus Law
State law (California Government Code Chapter 4.3 Density Bonuses and Other Incentives) dictates that a developer who meets certain requirements is entitled to a density bonus, including up to a 50% increase in density depending on the amount of affordable housing provided, and an 80% increase for completely affordable projects.

This law includes incentives such as reduced parking requirements and concessions for reduced setbacks and minimum square footage requirements.5 SB 35 (2017) and SB 423 (2023)
SB 35 (2017) dictates that a developer can request a streamlined, ministerial approval process for multifamily developments which include specified levels of affordable 5 For more information, including the full density bonus chart that outlines the percentage density bonus given for each level of affordability, see this guide on state Density Bonus Law prepared by Meyers Nave Legal Services.
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housing in jurisdictions that have not met their prorated Regional Housing Needs Allocation (RHNA). Projects that comply with the jurisdiction’s objective design standards and existing zoning are exempt from California Environmental Quality Act (CEQA) review and public hearings. Depending on the number of units, the timeline for determining eligibility is either 60 or 90 days and the final decision must be issued between 90 and 180 days from application submittal.6
SB 423 (2023) extends SB 35’s streamlined, ministerial approval process for qualifying multifamily developments until January 1, 2036. SB 423 also expands some provisions of SB 35, such as applying SB 35 to previously exempted coastal zone areas that are already zoned for housing.

Requirements for TOC Policy Compliance
Note: Production Policy 3 (Affordable Housing Overlay Zones), Production Policy 5 (Ministerial Approval), and Production Policy 7 (Development Certainty and Streamlined Entitlement Process) are related and contain overlapping requirements. As a result, jurisdictions may only count one of these policies for the purpose of TOC compliance for production policies.

To comply with the TOC Policy, a jurisdiction’s AHOZ policy must meet the following minimum requirements:
• The AHOZ policy must offer incentives for projects with at least 15% affordable housing. The policy’s required share of affordable units must exceed any jurisdiction-wide inclusionary zoning requirements and what is otherwise incentivized by state law for any given income category. The policy could incentivize any higher proportion of affordable housing up to and including 100% (e.g., only provide incentives to 100% affordable projects). • To incentivize greater shares of affordability than otherwise incentivized by State Law, the AHOZ policy must provide qualifying projects with greater development potential in the form of:
o Density bonus: the policy must offset greater affordability with residential density greater than what is available under the state Density Bonus Law. o Additional “concessions” or “incentives”: the policy must provide qualifying projects with at least one additional “concession” or “incentive” than what is already available under the state Density Bonus Law. Incentives or concessions could include ministerial approval, some other form of streamlining, or modifications to other planning code requirements.

Incentives and concessions must result in an actual and identifiable cost reduction for the project.
6 For more information, see this fact sheet on Senate Bill 35 prepared by the City of San Leandro. 255 of 545

• The policy’s affordability requirements must define affordable units as rental housing available to lower-income households earning 80% of AMI or less, and ownership housing to lower- and moderate-income households earning 120% of AMI or less. Jurisdictions should require deeper levels of affordability where feasible or through offering additional incentives.
• Affordable units must have recorded documents that set binding maximum rent and price restrictions to ensure affordability. These requirements must restrict rents and sales prices to affordable levels as defined by the rules of any applicable state or federal affordable housing program. These restrictions must also ensure affordability for at least 55 years for rental housing and at least 45 years for ownership housing.

Production Policy 4: Public Land for Affordable Housing Description from TOC Policy Resolution: Policies to prioritize the reuse of publicly owned land for affordable and mixed-income housing that go beyond existing state law, typically accompanied by prioritization of available funding for projects on these sites.

Purpose
High land costs can make it difficult to create new affordable housing for low- or moderate-income households, particularly in high-value, amenity-rich locations. Local jurisdictions can help overcome this obstacle by identifying public property (including surplus government agency property and tax delinquent/seized property) that can be repurposed for residential use and making it available to developers who commit to creating and maintaining ongoing affordability.7 Utilizing public land can increase feasibility for developing affordable housing. Jurisdictions may donate land; sell land at a deep discount; or transfer land using a below-market, long-term ground lease to affordable housing developers or community land trusts. Jurisdictions can also incentivize the use of public land for affordable housing through zoning, fee waivers, and/or permit streamlining. This policy tool can be used effectively in all communities and is particularly important in communities where vacant land appropriate for residential use is scarce. Effective actions to prioritize the reuse of publicly owned land for affordable housing will include creating an inventory of publicly owned sites, noticing practices aimed towards maximizing affordable housing development, and collaboration with other public agencies.

Relevant State Law
Surplus Lands Act
The Surplus Lands Act (Government Code Sections 54220 – 54234) requires local agencies to make findings that property is either surplus or exempt surplus land before disposing of it. If the property is not exempt, the local agency must provide written 7 For more information, see the brief “Use of publicly owned property for affordable housing” prepared by Local Housing Solutions.
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notice to housing developers to give them the first chance to purchase and develop surplus agency-owned land for affordable housing. If one of these interested parties purchases the land, then at least 25% of units developed must be affordable. However, if 90 days pass without reaching an agreement with one of these interested parties, then the affordability requirement for whatever development occurs on the land is 15% if 10 or more residential units are developed. The Surplus Land Act also includes penalties for local agencies that violate the Act when disposing of surplus lands.

Requirements for TOC Policy Compliance
To comply with the TOC Policy, a jurisdiction must meet the following minimum requirements for prioritizing the reuse of publicly owned land for affordable housing:
8 • The jurisdiction must have a program or policy in the Housing Element that describes the redevelopment of publicly owned land for affordable housing and aligns with the other requirements described below.
o In the absence of a Housing Element policy/program, the jurisdiction must adopt a public lands policy that includes a set of principles and standards for planning, leasing, and disposing of publicly owned land, as well as a program of implementation actions.
• The jurisdiction must provide evidence of a recent, ongoing, or planned housing development project on a public land site that meets the requirements of this policy. Though jurisdictions should prioritize affordable housing development on public land within the TOC area, a public lands project does not need to be within the TOC area to receive credit toward TOC Policy compliance. o If the jurisdiction does not have an ongoing or planned public lands project, staff must demonstrate that at least one publicly owned parcel in the jurisdiction has been deemed suitable for affordable housing development.9 • If the recent, ongoing, or planned housing development project on a public land site is not on land owned by the jurisdiction, the jurisdiction must provide evidence of financial support for the project. Financial support could be a grant/loan to the project or an in-kind contribution in the form of waivers for building permit fees, impact fees, and other fees. At their discretion, MTC staff may allow a jurisdiction to count a non-monetary benefit provided to a project in lieu of financial support. • For both rental and ownership projects, eligible developments on publicly owned land must exceed the Surplus Lands Act requirement to have at least 25% of units affordable to lower-income households earning 80% of AMI or less. Additional affordable units beyond the 25% for lower-income households can target both lower- and moderate-income households earning up to 120% of AMI. Jurisdictions 8 Any publicly owned sites used to demonstrate compliance with these requirements do not need to be deemed surplus under the Surplus Lands Act.
9 Jurisdictions should use the same standards as required by the Housing Element process for determining sites suitable for affordable housing development. 257 of 545

should require higher percentages of affordable units and/or deeper levels of affordability where feasible or through offering additional incentives. • Affordable units must have recorded documents that set binding maximum rent or price restrictions to ensure affordability. These requirements must restrict rents and sales prices to affordable levels as defined by the rules of any applicable state or federal affordable housing program. These restrictions must also ensure affordability for at least 55 years for rental housing and at least 45 years for ownership housing.
• Building on its Housing Element sites inventory and supplementary data provided by MTC/ABAG (if needed), the jurisdiction must create a comprehensive inventory of publicly owned sites to identify opportunities to produce affordable or mixedincome housing. The site inventory must include both land that qualifies as “surplus” under the Surplus Lands Act and other currently underutilized sites owned by the jurisdiction and other public agencies (e.g., state, county, and local agencies, as well as other public entities such as school districts). For more information about developing an inventory of publicly owned sites, see pages 9-11 of MTC/ABAG’s Public Lands Playbook.
• The jurisdiction must demonstrate it has dedicated staff or consultant time for monitoring and advancing the public lands program, including periodic review and evaluation of the inventory of publicly owned sites suitable for affordable housing development, outreach to affordable housing developers, and updates to City Council/Board of Supervisors.

Submitting Additional Required Documentation
In addition to the standard submission requirements, a jurisdiction must submit:
• A site inventory that meets the requirements described above. • At least one of the following:
o Documentation of a Housing Element policy/program for public land redevelopment that meets the standards described above.

OR
o An adopted public lands policy that meets the requirements described above. • Evidence (such as an RFQ/RFP) of a recent, ongoing, or planned housing development project on public lands that meets the standards outlined above. o In the absence of an ongoing or planned public lands project, evidence that the jurisdiction has at least one publicly owned land site suitable for affordable housing development.
• Documentation of dedicated staff or consultant for monitoring and advancing the public lands program or project, including anticipated full-time equivalent (FTE). 258 of 545

Production Policy 5: Ministerial Approval
Description from TOC Policy Resolution: Grant ministerial approval of residential developments that include, at a minimum, 15% affordable units if projects have 11 or more units, or that exceed inclusionary or density bonus affordability requirements and do not exceed 0.5 parking spaces per unit.

Purpose
“Ministerial approval” means a process for development approval involving little or no subjective judgment by a public official or commission. A public agency or commission merely ensures the proposed development meets all the objective zoning standards, objective subdivision standards, and objective design review standards in effect at the time the application is submitted to the local government. Developments under ministerial approval are exempt from the California Environmental Quality Act (CEQA), which eliminates the costs and time for environmental review.10 An effective ministerial approval policy will significantly reduce the turnaround time of housing projects by expediting the approval process, reduce development risk by providing more certainty in the approval process, and thereby lead to faster construction of housing with decreased carrying costs.

Relevant State Laws
SB 35 (2017) and SB 423 (2023)
Jurisdictions that have not met their pro-rated Regional Housing Needs Allocation (RHNA) targets must offer a streamlined (ministerial) approval process for multi-family developments per SB 35. The ministerial approval process applies to infill developments that comply with existing residential and mixed-use zoning and objective design standards. Affordability requirements vary depending on the jurisdiction’s progress in meeting its RHNA targets or the submittal status of its Annual Progress Report.

Developments of 10 units or fewer are not subject to the affordability requirements.

Furthermore, jurisdictions cannot impose parking standards on developments within 0.5 miles of transit and other circumstances. While SB 35 only applies to jurisdictions that have not met their RHNA targets and for infill projects, language from SB 35 may be helpful for jurisdictions to include in their adopted ministerial approval policy.

SB 423 (2023) extends SB 35’s streamlined, ministerial approval process for qualifying multifamily developments until January 1, 2036. SB 423 also expands some provisions of SB 35, such as applying SB 35 to previously exempted coastal zone areas that are already zoned for housing.

State Density Bonus Law
Government Code Chapter 4.3 Density Bonuses and Other Incentives states that eligible developments are entitled to a density bonus, including up to a 50% increase in density depending on the amount of affordable housing provided, and an 80% increase 10 For more information, see Caltrans’ overview of Chapter 34 - Exemptions to CEQA. 259 of 545

for completely affordable projects. This law includes incentives such as reduced parking requirements and concessions for reduced setbacks and minimum square footage requirements.11
Requirements for TOC Policy Compliance
Note: Production Policy 3 (Affordable Housing Overlay Zones), Production Policy 5 (Ministerial Approval), and Production Policy 7 (Development Certainty and Streamlined Entitlement Process) are related and contain overlapping requirements. As a result, jurisdictions may only count one of these policies for the purpose of TOC compliance for production policies.

To comply with the TOC Policy, a jurisdiction’s ministerial approval policy must meet the following minimum requirements:
• For projects with 11 or more units, the policy must do ONE of the following:
o Grant ministerial approval to any project where at least 15% of units are deed-restricted affordable housing units.

OR
o Grant ministerial approval for projects whose share of affordable units exceeds any existing local inclusionary zoning requirements and provides more affordable housing units or deeper affordability than would be required under state density bonus rules (given the bonus density obtained by the project).
• The policy’s affordability requirements must define affordable units as rental housing available to lower-income households earning 80% of AMI or less, and ownership housing to lower- and moderate-income households earning 120% of AMI or less. Jurisdictions should require deeper levels of affordability where feasible or through offering additional incentives.
• Affordable units must have recorded documents that set binding maximum rent or price restrictions to ensure affordability. These requirements must restrict rents and sales prices to affordable levels as defined by the rules of any applicable state or federal affordable housing program. These restrictions must also ensure affordability for at least 55 years for rental housing and at least 45 years for ownership housing.
• At minimum, jurisdictions must provide ministerial approval to projects with 11 or more units meeting the affordability standards described above. This does not preclude jurisdictions from applying ministerial approval to a broader range of projects, such as all multifamily housing regardless of affordability. 11 For more information, see this guide on the state Density Bonus Law prepared by Meyers Nave Legal Services, which includes the full density bonus chart that outlines the percentage density bonus given for each level of affordability.
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• Projects eligible for ministerial review cannot include more parking than is allowed by the parking space requirements outlined in Table 12 of MTC’s TOC Policy Administrative Guidance.

Production Policy 6: Public/Community Land Trusts
Description from TOC Policy Resolution: Investments or policies to expand the amount of land held by public- and non-profit entities such as co-operatives, community land trusts, and land banks with permanent affordability protections. This policy may be used to fulfill either the housing production or preservation requirement, but not both.

Purpose
Community Land Trusts (CLTs) are typically nonprofit organizations that acquire and steward land on behalf of community members. They contribute to the affordable housing stock by maintaining land ownership to ensure the housing built on land they own remains affordable to future renters or buyers. Community control of land through CLTs has high potential to prevent displacement in a variety of housing markets and around transit.
12, 13
Land banks are public authorities or non-profit organizations occasionally created through local ordinances to acquire, hold, manage, and sometimes redevelop property to return these properties to productive use to meet community goals, such as increasing affordable housing.
14, 15
Housing cooperatives are democratically controlled corporations established to provide housing for members. Limited Equity Housing Cooperatives offer long-term affordable homeownership opportunities for low- and moderate-income households. The development of these types of cooperatives is often funded with a combination of private and public funds.16
The acquisition and rehabilitation of housing by CLTs, land banks, and cooperatives can help preserve a range of housing types, stabilize housing costs, and expand housing choice for low- and moderate-income households.
17 Support for CLTs, land banks, and
cooperatives not only serves as an anti-displacement measure, but also represents a place-based community development strategy for disinvested neighborhoods and communities with concentrated poverty, as jurisdictions can provide funding for these entities to acquire and rehabilitate vacant and distressed properties or maintain existing 12 See Table 1. Literature Review Summary Table in White Paper on Anti-Displacement Strategy Effectiveness (Chapple and Loukaitou-Sideris, 2021).
13 Chapple et al. 2022. Examining the Unintended Effects of Climate Change Mitigation. Institute of Governmental Studies, UC Berkeley.
14 Local Housing Solutions. Land Banks. 15 Center for Community Progress. Land Bank FAQ’s. 16 California Center for Cooperative Development. Housing Co-ops. 17 Yelen, J. 2020. Preserving Affordability, Preventing Displacement. Enterprise Community Partners. 261 of 545

affordable housing options. This policy intends to set aside funding for CLTs, land banks, and cooperatives to remove land from the speculative market and ensure longterm affordability.

Requirements for TOC Policy Compliance
To comply with the TOC Policy, a jurisdiction’s affordable housing production funding program focused on public/community land trusts must meet the following minimum requirements:
• The jurisdiction must have a program with secured funding18 that provides ongoing allocations to the program at or above the level identified in Appendix B. The amount contributed can vary by year as long as the total for the relevant four-year OBAG cycle meets the specified target for the jurisdiction. • Funding must be locally generated.
o Potential local funding sources include commercial linkage fees, housing impact fees (but see note below if the impact fees are part of an inclusionary zoning ordinance), taxes (such as an employee head tax or real estate transfer tax), local bond measures, successor agency funds, business/gross receipts tax on rental property, and general fund allocations. o Jurisdictions may include county or regional bond funds expended with the jurisdiction’s participation on affordable housing projects within its boundaries.
o Jurisdictions may include grants from philanthropic organizations or private contributions made by businesses or individuals.
o In-kind contributions to developments in the form of fee waivers for building permit fees, impact fees, and other fees can also be counted toward the required amount of local affordable housing funding. Staff hours are not eligible for consideration.
o If a jurisdiction is also using inclusionary zoning (Production Policy 1) for the TOC Policy’s production requirement, funding generated by collecting in-lieu fees from inclusionary zoning cannot be counted toward the funding minimums required for this affordable housing funding policy (Production Policy 6). If the jurisdiction has inclusionary zoning but does not use it to satisfy the TOC Policy's affordable housing production requirement, the funding generated by collecting in-lieu fees may be counted towards satisfying Production Policy 6.
18 Secured Funding: Housing program funds may be considered secured if they are included in a current budget from a source that is expected to continue and where the use of these funds for the program can be reasonably expected to be approved in subsequent years. The subsequent years’ funding may require future budget approvals or may be dependent on uncertain but expected revenue sources, so long as there is not a known sunset date or other limit. For bond proceeds or other one-time investments, funding can be considered secured if it will be available for investment at the required level at any point in the four-year planning period, expected to align with the OBAG cycle. 262 of 545

o NOTE: Federal and state funding (such as HOME/CDBG or PLHA) that is passed through a jurisdiction is not counted as local funding. • Jurisdictions that have an existing balance in a housing funding program when submitting final documentation for TOC Policy compliance may count existing funds toward the required total so long as funds are available for expenditure during the four-year planning period (anticipated to align with the OBAG cycle). • Jurisdictions that have committed affordable housing funds prior to submitting final documentation for TOC Policy compliance may count expended funds toward the required total so long as at least one of the following conditions is met:
o The funds are used to support a project or program occurring during the relevant four-year OBAG cycle (e.g., funds are committed to a CLT to use for affordable housing production during the OBAG 4 cycle sometime between 2026 and 2030).

AND/OR
o The funds are expended after January 1, 2025.
• The funding program must establish a standard set of financing terms, including affordability requirements. The program’s affordability requirements must define affordable units as rental housing available to lower income households earning 80% of AMI or less, and ownership housing to lower- and moderate-income households earning 120% of AMI or less. Jurisdictions should require deeper levels of affordability where feasible or through offering additional incentives. • Affordable units must have recorded documents that set binding maximum rent or price restrictions to ensure affordability. These requirements must restrict rents and sales prices to affordable levels as defined by the rules of any applicable state or federal affordable housing program. These restrictions must also ensure affordability for at least 55 years for rental housing and at least 45 years for ownership housing.
• The program’s funds must be reserved for CLTs and/or cooperatives to use for affordable housing production, or the jurisdiction or other public entities can use the funding to acquire and hold property that will be used for production of affordable housing.
• NOTE: A jurisdiction whose policy meets the minimum requirements above cannot also count this policy for credit for Production Policy 2 (Affordable Housing Funding). However, if a jurisdiction has a funding program that meets requirements for Production Policy 2, and if this program additionally has set asides for public/community land trusts that meet the funding listed in Appendix B, then the program can also receive credit for Production Policy 6 (Public/Community Land Trusts). For example, a Tier A jurisdiction that has a production program with $2,000,000 in secured funding during the relevant fouryear OBAG cycle would receive credit for both Production Policy 1 and Production 263 of 545

Policy 6 if the program has a set aside for CLTs of $1,000,000, as these amounts meet the $1,000,000 four-year minimum for both policies.

Submitting Additional Required Documentation
In addition to the standard submission requirements, a jurisdiction must submit:
• A copy of the program’s financing terms if they are not included in an ordinance or other documents establishing the program. Financing terms must indicate the income limits/affordability levels and required affordability period, and the terms must identify a legal mechanism for enforcement of affordable housing requirements (e.g., deed restriction, regulatory agreement, etc.) • Documents demonstrating the jurisdiction has secured funding that meets the minimum requirements for being considered “secured.”
• A schedule of expected funding allocated to the program over the four-year period.

MTC understands that projections of future funding may be imprecise, and the expectation is that a jurisdiction will provide a reasonable projection of future funding based on the best information available at the time of submitting compliance documentation to MTC. At the end of the 4-year planning period (expected to align with the OBAG cycle), MTC will expect documentation of actual funding received by the program and invested in projects, which may differ from initial projections.

Production Policy 7: Development Certainty and Streamlined Entitlement Process
Description from TOC Policy Resolution: Include the vested rights and five hearing limit provisions currently outlined in SB330 (2019, Skinner) without a sunset date.

Purpose
In some cities, towns, and counties, the process associated with obtaining approval for new construction is so time-consuming or costly that it dampens the amount of new development and adds significantly to its costs. Permit streamlining and other improvements in the regulatory environment can make cities more attractive to developers of both market-rate and affordable housing, helping to increase the housing supply over the long term and moderate price increases.19 Relevant State Law
Housing Crisis Act of 2019
The Housing Crisis Act of 2019 was established by SB 330 (2019) and amended by SB 8 (2021). State law establishes vested rights through a preliminary application—a project is only subject to the ordinances, policies, and standards adopted and in effect 19 For more information, see the brief “Streamlined permitting processes” prepared by Local Housing Solutions.
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when this application is submitted. State law requires timely processing of housing permits that follow existing local zoning rules (must issue written determination of consistency with objective standards within 30 days for 150 or fewer units or 60 days for more than 150 units). SB 330 requires that no more than five total hearings be allowed for residential development projects and the final decision on a residential project must be made within 90 days after certification of an EIR for a development project, or 60 days for a development project where at least 49% of the units in the development are affordable to very low or low-income households. The Housing Crisis Act of 2019 has a sunset date of January 1, 2030.

Requirements for TOC Policy Compliance
Note: Production Policy 3 (Affordable Housing Overlay Zones), Production Policy 5 (Ministerial Approval), and Production Policy 7 (Development Certainty and Streamlined Entitlement Process) are related and contain overlapping requirements. As a result, jurisdictions may only count one of these policies for TOC compliance for production policies. However, if a jurisdiction implements all provisions from SB 330/SB 8 without a sunset date, then the jurisdiction meets the standards required by and can claim credit for both Production Policy 7 (Development Certainty and Streamlined Entitlement Process) and Protection Policy 2 (No Net Loss and Right to Return to Demolished Homes).

To comply with the TOC Policy, a jurisdiction’s development certainty and streamlined entitlement policy must meet the following minimum requirements:
• Adopt a local ordinance with no sunset date that provides the vested rights and five hearing limit provisions from SB 330.
• Adopt Protection Policy 2: No Net Loss and Right to Return to Demolished Homes, unless preempted by state or federal law.
o If a jurisdiction does not adopt Protection Policy 2, staff must provide a detailed analysis of how the jurisdiction otherwise prevents displacement and protects tenants in areas where development certainty and streamlined approvals are available.

II. Affordable Housing Preservation Policy Options
To comply with the TOC Policy, a jurisdiction must adopt at least two of the affordable housing preservation policies listed below:
• Preservation Policy 1: Funding to Preserve Unsubsidized Affordable Housing • Preservation Policy 2: Tenant/Community Opportunity to Purchase • Preservation Policy 3: Single-Room Occupancy (SRO) Preservation • Preservation Policy 4: Condominium Conversion Restrictions • Preservation Policy 5: Public/Community Land Trusts (This policy may fulfill either the housing production or preservation requirement, but not both.) 265 of 545

• Preservation Policy 6: Funding to Support Preservation Capacity • Preservation Policy 7: Mobile Home Preservation
• Preservation Policy 8: Preventing Displacement from Substandard Conditions and Associated Code Enforcement Activities (This policy may fulfill either the housing preservation or protection requirement, but not both.) A jurisdiction may meet the requirements with existing adopted policies or as needed, adopt new policies by the TOC Policy compliance deadline. At minimum, policies must apply in TOC areas. Jurisdictions may choose to apply policies beyond the TOC area(s), which could include the entirety of the jurisdiction (i.e., adopting a jurisdictionwide policy). See Section 2 of the guidance document for more information about these requirements.

Preservation Policy 1: Funding to Preserve Unsubsidized Affordable Housing
Description from TOC Policy Resolution: Public investments to preserve unsubsidized housing affordable to lower- or moderate-income residents (sometimes referred to as "naturally occurring affordable housing”) as permanently affordable.

Purpose
Most lower-income households in the Bay Area rent in the private market without any form of housing assistance. The private market properties offering rents that lowerincome people can afford without subsidy are known as unsubsidized or “naturally occurring” affordable housing. Without subsidy, lower-income tenants are particularly vulnerable to rent increases as well as poorly maintained housing, and in the Bay Area’s competitive housing market these properties may be targeted by investors seeking to update units and raise rents. Lower-income homeowners are also vulnerable to market pressures that can result in displacement and loss of affordable homes. Preservation programs for unsubsidized affordable housing typically engage community organizations to help identify and monitor at-risk properties while also providing funding to support rehabilitation needs as well as acquisition and conversion to long-term affordable housing. Effective public investments to preserve unsubsidized housing will have funds available to secure unsubsidized affordable housing (rental or ownership), eligibility criteria for receiving funds, regulatory restrictions to maintain affordability of preserved units, and an anti-displacement strategy for existing tenants.

Requirements for TOC Policy Compliance
To comply with the TOC Policy, a jurisdiction’s funding program to preserve unsubsidized affordable housing must meet the following minimum requirements:
• The jurisdiction has at least one funding program dedicated to the preservation of existing affordable housing, where preservation of unsubsidized affordable housing is explicitly identified as an eligible use.
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• The jurisdiction must have a program with secured funding20 that provides ongoing allocations to the program at or above the level identified in Appendix B. The amount contributed can vary by year as long as the total for the relevant four-year OBAG cycle meets the specified target for the jurisdiction. • Funding must be locally generated.
o Potential local funding sources include commercial linkage fees, housing impact fees (but see note below if the impact fees are part of an inclusionary zoning ordinance), taxes (such as an employee head tax or real estate transfer tax), local bond measures, successor agency funds, business/gross receipts tax on rental property, and general fund allocations. o Jurisdictions may also include county or regional bond funds expended with the jurisdiction’s participation on preservation projects within its boundaries. o Jurisdictions may include grants from philanthropic organizations or private contributions made by businesses or individuals.
o When relevant, in-kind contributions to developments in the form of fee waivers for building permit fees, impact fees, and other fees can also be counted toward the required amount of local affordable housing funding. Staff hours are not eligible for consideration.
o If a jurisdiction is also using inclusionary zoning (Production Policy 1) for the TOC Policy’s production requirement, funding generated by collecting in-lieu fees from inclusionary zoning cannot be counted toward the funding minimums for this policy (Preservation Policy 1). If the jurisdiction has inclusionary zoning but does not use it to satisfy the TOC Policy's affordable housing production requirement, the funding generated by collecting in-lieu fees may be counted toward satisfying Preservation Policy 1. o NOTE: Federal and state funding (such as HOME/CDBG or PLHA) that is passed through a jurisdiction is not counted as local funding. • Jurisdictions that have an existing balance in a housing preservation funding program when submitting final documentation for TOC Policy compliance may count existing funds toward the required total so long as funds are available for expenditure during the four-year planning period (anticipated to align with the OBAG cycle).
• Jurisdictions that have committed affordable housing preservation funds prior to submitting final documentation for TOC Policy compliance may count expended 20 Secured Funding: Housing program funds may be considered secured if they are included in a current budget from a source that is expected to continue and where the use of these funds for the program can be reasonably expected to be approved in subsequent years. The subsequent years’ funding may require future budget approvals or may be dependent on uncertain but expected revenue sources, so long as there is not a known sunset date or other limit. For bond proceeds or other one-time investments, funding can be considered secured if it will be available for investment at the required level at any point in the four-year planning period, expected to align with the OBAG cycle. 267 of 545

funds toward the required total so long as at least one of the following conditions is met:
o The funds are used to support a project or program occurring during the relevant four-year OBAG cycle (e.g., funds are committed to an unsubsidized affordable housing preservation project that will be completed during the OBAG 4 cycle sometime between 2026 and 2030).

AND/OR
o The funds are expended after January 1, 2025.
• The jurisdiction must establish criteria for borrower eligibility that require funding recipients to have experience with affordable housing preservation. • The program must establish a standard set of financing terms, including affordability requirements.
o For rental properties, the average rent for all units at each preserved property at the time of acquisition must be affordable to households earning no more than 80% of AMI. After acquisition, new residents must be income qualified and earn less than 120% of AMI, and the building must maintain an average income of no more than 80% of AMI. Existing residents of acquired buildings shall not be displaced, even if the household’s income exceeds the AMI thresholds noted above.
o All ownership units preserved as affordable housing (e.g., a single-family home acquired by a community land trust) must be sold to lower- and moderate-income households earning 120% of AMI or less. o Units acquired through the program must have recorded documents that set binding maximum rent or price restrictions to ensure affordability. These requirements must restrict rents and sales prices to affordable levels as defined by the rules of any applicable state or federal affordable housing program. These restrictions must also ensure affordability for at least 55 years for rental housing and at least 45 years for ownership housing.

Submitting Additional Required Documentation
In addition to the standard submission requirements, a jurisdiction must submit:
• A copy of the program’s eligibility and financing terms if they are not included in an ordinance or other documents establishing the program. These terms must indicate the criteria for borrower eligibility to ensure funding recipients have experience with affordable housing preservation, income limits/affordability levels and required affordability period, and the terms must identify a legal mechanism for enforcement of affordable housing requirements (e.g., deed restriction, regulatory agreement, etc.).
• Documents demonstrating the jurisdiction has secured funding that meets the minimum requirements for being considered “secured.”
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• A schedule of expected funding to be received by the fund over the 4-year period.

MTC understands that projections of future funding may be imprecise, and the expectation is that a jurisdiction will provide a reasonable projection of future funding based on the best information available at the time of submitting compliance documentation to MTC. At the end of the four-year planning period (expected to align with the OBAG cycle), MTC will expect documentation of actual funding received by the program and invested in projects, which may differ from initial projections.

Preservation Policy 2: Tenant/Community Opportunity to Purchase Description from TOC Policy Resolution: Policies or programs that provide tenants or mission-driven nonprofits the right of first refusal to purchase a property at the market price when it is offered for sale, retaining existing residents and ensuring long-term affordability of the units by requiring resale restrictions to maintain affordability.

Purpose
A Tenant (or Community) Opportunity to Purchase Act (TOPA/COPA) policy can give tenants and nonprofits sufficient time to compete to purchase a property. TOPA/COPA policies aim to prevent displacement of lower-income communities, long-term renters, and other marginalized residents by preserving currently affordable housing and creating pathways for long-term affordability. A TOPA/COPA policy can also facilitate homeownership for tenants by creating limited equity housing cooperatives or other ownership models, enabling increased wealth building opportunities for communities who may have historically been denied access to homeownership. For these reasons, jurisdictions throughout the Bay Area have identified TOPA/COPA as key preservation tools to combat displacement.21 Effective TOPA/COPA policies will identify what housing types are subject to the policy, what organizations are qualified to purchase a property, noticing procedures for the sale of property, a consistent local funding source, a reasonable timeline to respond to the intent to sell, and an anti-displacement strategy for existing residents.

Requirements for TOC Policy Compliance
To comply with the TOC Policy, a jurisdiction’s TOPA and/or COPA policy must meet the following minimum requirements:22
• The jurisdiction can meet TOC Policy requirements with either a TOPA or COPA ordinance, or both.
• The TOPA/COPA ordinance defines eligible and exempt properties. 21 Bay Area Housing Element Advocacy Working Group. “Leveraging the Housing Element to Advance Tenant & Community Opportunity to Purchase Policies.”
22 The requirements are derived from key components of: (1) OPA Policy described by Partnership for the Bay’s Future. 2022. Opportunity to Purchase Act Campaign Playbook (p.22) and (2) Public Advocates, “Key Considerations for Designing Tenant and Community Opportunity to Purchase Policies.” 269 of 545

• The ordinance establishes the legal right of first refusal that gives tenants and/or nonprofits the first right to purchase a covered property. • The ordinance establishes timelines for notice of sale, offer period, time to close, and time to counter-offer under TOPA/COPA.23
Preservation Policy 3: Single-Room Occupancy (SRO) Preservation Description from TOC Policy Resolution: Limits the conversion of occupied SRO rental units to condominiums or other uses that could result in displacement of existing residents.

Purpose
Single Room Occupancy (SRO) units are a unique form of affordable rental housing that does not exist in all communities. SROs are generally comprised of small, furnished single rooms within multi-tenant buildings with shared kitchens and/or bathrooms. SROs do not typically require a security deposit, credit references, proof of income, or a longterm lease agreement. For these reasons, SROs have provided low-cost housing for vulnerable populations with unstable finances, very low incomes, or limited access to credit. In some cases, SROs are used as transitional housing for people who are in between more permanent housing arrangements.

In the absence of preservation policies, housing market pressures leave SRO units vulnerable to demolition or conversion to tourist hotels, condominiums, or market-rate apartments, resulting in displacement and potential homelessness for low-income SRO residents. The purpose of SRO unit conversion regulations is to ensure the retention of existing SRO units and to assist SRO tenants that will be displaced by demolition, conversion, or rehabilitation of these units. An effective SRO preservation policy will limit the number of units that can be converted, ensure housing stability for SRO tenants, and monitor at-risk properties.

Requirements for TOC Policy Compliance
To receive compliance credit for this policy, a jurisdiction must have an existing supply of SRO buildings owned by private entities other than mission-driven nonprofit organizations. Due to the heightened vulnerability of both SRO housing stock and the residents who occupy it, a jurisdiction with an adopted SRO preservation policy that applies to all at-risk SROs may receive credit for this policy even if none of the SRO building are located within TOC areas.

To comply with the TOC Policy, a jurisdiction’s SRO preservation policy must meet the following minimum requirements:
23 San Jose Community Opportunity to Purchase (COPA) Proposed Program Summary – January 2023 Update.
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• The policy must limit the number of SRO units approved to be converted in a given calendar year to no more than the number of equivalent rental units completed the previous calendar year. “Equivalent rental units” shall be defined as low-cost SRO units or any income-restricted housing affordable to households with incomes at 30% of AMI or less.
• At the time of application for conversion of units, require applicants to produce a Tenant Relocation Assistance Plan24 spelling out tenant protections, benefits and required relocation payments for any temporarily or permanently displaced residents.
• Exemptions to the conversion restrictions can be made for conversion of SRO buildings to 100% affordable units for tenants at 50% of AMI or less. However, affordable housing developers need to provide existing tenants with a first right of refusal for new units. Rents for these tenants must be based on their incomes, though rents for their units could reset at 50% of AMI upon turnover. Developers also need to produce the Tenant Relocation Assistance Plan referenced above for any temporarily or permanently displaced tenants.
• If none of the at-risk SROs in a jurisdiction are located within a TOC area, then the jurisdiction must apply this policy jurisdiction-wide.

Submitting Additional Required Documentation
In addition to the standard submission requirements, a jurisdiction must submit documentation of the presence of SRO units owned by private entities other than mission-driven nonprofit organizations that would be protected by the policy.

Preservation Policy 4: Condominium Conversion Restrictions Description from TOC Policy Resolution: Require that units converted to condominiums be replaced 1:1 with comparable rental units, unless purchased by current long-term tenants or converted to permanently affordable housing with protections for existing tenants.

Purpose
The conversion of rental housing to condominiums presents a risk to maintaining a supply of rental housing, which typically serves a wider range of households than ownership units in condominiums. Establishing criteria for the conversion of rental housing to condominiums can help preserve much-needed rental housing stock, reduce the risk of displacement of existing tenants in rental units, and ensure continued 24 Relocation Assistance Plan: A plan outlining the benefits and protections afforded to tenants to minimize displacement and support relocation, including at a minimum: no penalty for the tenant to terminate a lease, payment of tenant reasonable moving expenses, relocation assistance payments in an amount that is at least three times the monthly fair market rent of the unit that the resident is being relocated out of, and tenants that experience temporary displacement must be guaranteed protection against unreasonable rent increases upon returning to their unit. 271 of 545

housing stability for tenants who are displaced in the event of conversions. Effective condominium conversion policies will include restrictions on conversion, right to purchase protections and relocation assistance, and the promotion of affordable housing through comparable replacement units.

Relevant State Law
Subdivision Map Act
The Subdivision Map Act (Gov Code 66410-66424.6) requires developers to provide notices of condominium conversion to tenants at every stage of the process.

Requirements for TOC Compliance
To comply with the TOC Policy, a jurisdiction’s condominium conversion policy must meet the following minimum requirements:
• Require 1-for-1 replacement of existing units with comparable rental units, when permitted by law. A program may allow or require replacement units be provided through payment of an in-lieu fee in an amount sufficient to mitigate the loss of rental housing that results from condominium conversions, in accordance with applicable law. Jurisdictions may allow the following exemptions to providing replacement units and/or paying the in-lieu fee:
o Conversions where at least 90% of condominium units are purchased by current tenants.
o Conversions to 100% housing units with long-term affordability restrictions for households earning 120% of AMI or less.
• Provide existing tenants the first right to purchase a unit at the same price offered to the general public consistent with the Subdivision Map Act.25 • At the time of application for conversion of units, require applicants to produce a Tenant Relocation Assistance Plan26 spelling out tenant protections, benefits and required relocation payments for any temporarily or permanently displaced residents.

Submitting Additional Required Documentation
In addition to the standard submission requirements, a jurisdiction must submit:
• A brief written explanation describing how the jurisdiction determined the in-lieu fee amount, including a justification for why the fee is sufficient to mitigate the loss of rental housing.
25 This is a right under the Subdivision Map Act (Gov Code 66410-66424.6). 26 Relocation Assistance Plan: A plan outlining the benefits and protections afforded to tenants to minimize displacement and support relocation, including at a minimum: no penalty for the tenant to terminate a lease, payment of tenant reasonable moving expenses, relocation assistance payments in an amount that is at least three times the monthly fair market rent of the unit that the resident is being relocated out of, and tenants that experience temporary displacement must be guaranteed protection against unreasonable rent increases upon returning to their unit. 272 of 545

Preservation Policy 5: Public/Community Land Trusts
Description from TOC Policy Resolution: Investments or policies to expand the amount of land held by public- and non-profit entities such as co-operatives, community land trusts, and land banks with permanent affordability protections. This policy may be used to fulfill either the housing production or preservation requirement, but not both.

Purpose
Community Land Trusts (CLTs) are typically nonprofit organizations that acquire and steward land on behalf of community members. They contribute to the affordable housing stock by maintaining land ownership to ensure the housing built on land they own remains affordable to future renters or buyers. Community control of land through CLTs has high potential to prevent displacement in a variety of housing markets and around transit.
27, 28
Land banks are public authorities or non-profit organizations occasionally created through local ordinances to acquire, hold, manage, and sometimes redevelop property to return these properties to productive use to meet community goals, such as increasing affordable housing.
29, 30
Housing cooperatives are democratically controlled corporations established to provide housing for members. Limited Equity Housing Cooperatives offer long-term affordable homeownership opportunities for low- and moderate-income households. The development of these types of cooperatives is often funded with a combination of private and public funds.31
The acquisition and rehabilitation of housing by CLTs, land banks, and cooperatives can help preserve a range of housing types, stabilize housing costs, and expand housing choice for lower-income households.
32 Support for CLTs, land banks, and cooperatives
not only serves as an anti-displacement measure but also represents a place-based community development strategy for disinvested neighborhoods and communities with concentrated poverty, as jurisdictions can provide funding for these entities to acquire and rehabilitate vacant and distressed properties or maintain existing affordable housing options. This policy intends to set aside funding for CLTs, land banks, and cooperatives to remove land from the speculative market and ensure long-term affordability. 27 See Table 1. Literature Review Summary Table in White Paper on Anti-Displacement Strategy Effectiveness (Chapple and Loukaitou-Sideris, 2021).
28 Chapple et al. 2022. Examining the Unintended Effects of Climate Change Mitigation. Institute of Governmental Studies, UC Berkeley.
29 Local Housing Solutions. Land Banks. 30 Center for Community Progress. Land Bank FAQ’s. 31 California Center for Cooperative Development. Housing Co-ops. 32 Yelen, J. 2020. Preserving Affordability, Preventing Displacement. Enterprise Community Partners. 273 of 545

Relevant State Law
SB 1079 (2020): Residential Property: Foreclosure
SB 1097 (2020) grants “eligible bidders” including CLTs certain rights and priorities to make bids on a foreclosed property after the initial trustee sale and potentially to purchase it as the last and highest bidder.

Requirements for TOC Policy Compliance
To comply with the TOC Policy, a jurisdiction’s affordable housing preservation funding program focused on public/community land trusts must meet the following minimum requirements:
• The jurisdiction must have a program with secured funding33 that provides ongoing allocations to the program at or above the level identified in Appendix B. The amount contributed can vary by year as long as the total for the relevant four-year OBAG cycle meets the specified target for the jurisdiction. • Funding must be locally generated.
o Potential local funding sources include commercial linkage fees, housing impact fees (but see note below if the impact fees are part of an inclusionary zoning ordinance), taxes (such as an employee head tax or real estate transfer tax), local bond measures, successor agency funds, business/gross receipts tax on rental property, and general fund allocations. o Jurisdictions may include county or regional bond funds expended with the jurisdiction’s participation on preservation projects within its boundaries. o Jurisdictions may include grants from philanthropic organizations or private contributions made by businesses or individuals.
o When relevant, in-kind contributions to developments in the form of fee waivers for building permit fees, impact fees, and other fees can also be counted toward the required amount of local affordable housing funding. Staff hours are not eligible for consideration.
o If a jurisdiction is also using inclusionary zoning (Production Policy 1) for the TOC Policy’s production requirement, funding generated by collecting in-lieu fees from inclusionary zoning cannot be counted toward the funding minimums for this policy (Preservation Policy 5). If the jurisdiction has inclusionary zoning but does not use it to satisfy the TOC Policy's affordable housing production requirement, the funding generated by collecting in-lieu fees may be counted toward satisfying Preservation Policy 5. 33 Secured Funding: Housing program funds may be considered secured if they are included in a current budget from a source that is expected to continue and where the use of these funds for the program can be reasonably expected to be approved in subsequent years. The subsequent years’ funding may require future budget approvals or may be dependent on uncertain but expected revenue sources, so long as there is not a known sunset date or other limit. For bond proceeds or other one-time investments, funding can be considered secured if it will be available for investment at the required level at any point in the four-year planning period, expected to align with the OBAG cycle. 274 of 545

o NOTE: Federal and state funding (such as HOME/CDBG or PLHA) that is passed through a jurisdiction is not counted as local funding. • Jurisdictions that have an existing balance in a housing preservation funding program for CLTs when submitting final documentation for TOC Policy compliance may count existing funds toward the required total so long as funds are available for expenditure during the four-year planning period (anticipated to align with the OBAG cycle).
• Jurisdictions that have committed affordable housing preservation funds for CLTs prior to submitting final documentation for TOC Policy compliance may count expended funds toward the required total so long as at least one of the following conditions is met:
o The funds are used to support a project or program occurring during the relevant four-year OBAG cycle (e.g., funds are committed to a CLT to use for acquiring and preserving an unsubsidized affordable housing property during the OBAG 4 cycle sometime between 2026 and 2030).

AND/OR
o The funds are expended after January 1, 2025.
• The program’s funds must be reserved for CLTs and/or cooperatives to use for affordable housing preservation.
• The jurisdiction must establish criteria for borrower eligibility that require funding recipients to have experience with affordable housing preservation. • The funding program must establish a standard set of financing terms, including affordability requirements.
o For rental properties, the average rent for all units at each preserved property at the time of acquisition must be affordable to households earning no more than 80% of AMI. After acquisition, new residents must be income qualified and earn less than 120% of AMI, and the building must maintain an average income of no more than 80% of AMI. Existing residents of acquired buildings shall not be displaced, even if the household’s income exceeds the AMI thresholds noted above.
o All ownership units preserved as affordable housing (e.g., a single-family home acquired by a community land trust) must be sold to lower- and moderate-income households earning 120% of AMI or less. o Units acquired through the program must have recorded documents that set binding maximum rent or price restrictions to ensure affordability. These requirements must restrict rents and sales prices to affordable levels as defined by the rules of any applicable state or federal affordable housing program. These restrictions must also ensure affordability for at least 55 years for rental housing and at least 45 years for ownership housing. 275 of 545

• NOTE: A jurisdiction whose policy meets the minimum requirements above cannot also count this policy for credit for Preservation Policy 1 (Funding to Preserve Unsubsidized Affordable Housing). However, if a jurisdiction has a funding program that meets requirements for Preservation Policy 1, and if this program additionally has set asides for public/community land trusts that meet the funding amounts listed in Appendix B, then the program can also receive credit for Preservation Policy 5 (Public/Community Land Trusts). For example, a Tier A jurisdiction that has a preservation program with $800,000 in secured funding during the relevant fouryear OBAG cycle would receive credit for both Preservation Policy 1 and Preservation Policy 5 if the program has a set aside for CLTs of $400,000, as these amounts meet the $400,000 four-year minimum for both policies.

Submitting Additional Required Documentation
In addition to the standard submission requirements, a jurisdiction must submit:
• A copy of the program’s eligibility and financing terms if they are not included in an ordinance or other documents establishing the program. These terms must indicate the eligibility, income limits/affordability levels and required affordability period, and the terms must identify a legal mechanism for enforcement of affordable housing requirements (e.g., deed restriction, regulatory agreement, etc.) • Documents demonstrating the jurisdiction has secured funding that meets the minimum requirements for being considered “secured.”
• A schedule of expected funding allocated to the program over the four-year period.

MTC understands that projections of future funding may be imprecise, and the expectation is that a jurisdiction will provide a reasonable projection of future funding based on the best information available at the time of submitting compliance documentation to MTC. At the end of the 4-year planning period (expected to align with the OBAG cycle), MTC will expect documentation of actual funding received by the program and invested in projects, which may differ from initial projections.

Preservation Policy 6: Funding to Support Preservation Capacity Description from TOC Policy Resolution: Dedicated local funding for capacity building or other material support for community land trusts (CLTs) or other community-based organizations (CBOs) engaged in affordable housing preservation.

Purpose
Capacity refers to an organization’s ability to deliver a service or product. For organizations such as CBOs and CLTs which are engaged in affordable housing preservation, capacity may refer to having adequate staffing, organizational knowledge, and material or financial resources to effectively preserve affordable housing. By providing capacity funding to smaller organizations such as CBOs and CLTs, these entities are better equipped to secure properties and financing necessary to preserve affordable housing in a competitive housing market. Key features of an effective funding 276 of 545

source to support preservation capacity include pairing capital funds for preservation with grants for capacity building, established guidelines for eligible funding recipients, and supporting developer experience through joint-venture partnerships. Effective policies to support preservation capacity will commit to multi-year funding dedicated for CBOs and CLTs.

Requirements for TOC Policy Compliance
To comply with the TOC Policy, a jurisdiction’s funding to support preservation capacity must meet the following minimum requirements:
• The jurisdiction must have a dedicated funding program with secured funding34 that supports capacity building for CLTs and CBOs for housing preservation work.

Funding must maintain project management staffing for a minimum of four years at approximately 0.5 full-time equivalent (FTE).
• The jurisdiction must define eligibility for financial awards to CLTs and CBOs. • Funding for the program can come from any source that allows supporting staff capacity as an eligible use of funds. Potential funding sources could include, but are not limited to, local housing trust funds, county funds, state and federal funds passed through the jurisdiction, grants from philanthropic organizations, and private contributions from businesses or individuals.
• Jurisdictions that have an existing balance in a funding program to support preservation capacity when submitting final documentation for TOC Policy compliance may count existing funds toward the required total so long as funds are available for expenditure during the four-year planning period (anticipated to align with the OBAG cycle).
• Jurisdictions that have committed funds to support preservation capacity prior to submitting final documentation for TOC Policy compliance may count expended funds toward the required total so long as at least one of the following conditions is met:
o The funds are used to support a project or program occurring during the relevant four-year OBAG cycle (e.g., funds are committed to CBO or CLT to support project management staffing during the OBAG 4 cycle sometime between 2026 and 2030).

AND/OR
o The funds are expended after January 1, 2025.
34 Secured Funding: Housing program funds may be considered secured if they are included in a current budget from a source that is expected to continue and where the use of these funds for the program can be reasonably expected to be approved in subsequent years. The subsequent years’ funding may require future budget approvals or may be dependent on uncertain but expected revenue sources, so long as there is not a known sunset date or other limit. For bond proceeds or other one-time investments, funding can be considered secured if it will be available for investment at the required level at any point in the four-year planning period, expected to align with the OBAG cycle. 277 of 545

• If a jurisdiction establishes a preservation funding program that meets requirements for Preservation Policy 1 (Funding to Preserve Unsubsidized Affordable Housing) and/or Preservation Policy 5 (Public/Community Land Trusts), the jurisdiction can use this program to also receive credit for Preservation Policy 6 (Funding to Support Preservation Capacity) if the program additionally has a set aside for capacity building that meets the requirements listed above.

Submitting Additional Required Documentation
In addition to the standard submission requirements, a jurisdiction must submit:
• An explanation for how the jurisdiction determined the amount of funding necessary to maintain project management staffing for the four-year period. • A copy of the program’s eligibility criteria if they are not included in an ordinance or other documents establishing the program.
• Documents demonstrating the jurisdiction has secured funding that meets the minimum requirements for being considered “secured.”
• A schedule of expected funding allocated to the program over the four-year period.

MTC understands that projections of future funding may be imprecise, and the expectation is that a jurisdiction will provide a reasonable projection of future funding based on the best information available at the time of submitting compliance documentation to MTC. At the end of the four-year planning period (expected to align with the OBAG cycle), MTC will expect documentation of actual funding received by the program and invested in projects, which may differ from initial projections.

Preservation Policy 7: Mobile Home Preservation
Description from TOC Policy Resolution: Policy or program to preserve mobile homes from conversion to other uses that may result in displacement of existing residents.

Purpose
Mobile home parks provide a distinct type of naturally occurring affordable housing, due to the size of mobile homes, the type of construction, and a unique dynamic where residents typically own their mobile homes but rent the lots under them from mobile home park owners. While state law extends certain protections to mobile home units, mobile home parks are increasingly being acquired by speculative investors for potential future redevelopment. Such market pressures pose displacement risks to mobile home residents, many of whom live on fixed incomes and have limited alternative affordable housing options. Accordingly, a strategy to prevent displacement and promote community stability for mobile home residents is to regulate and limit the conversion of mobile home parks, and support residents and community organizations in purchasing the park to preserve affordability. An effective Mobile Home Preservation policy or program will either limit conversions through zoning rules or provide significant relocation assistance for park residents in the event of a closure. 278 of 545

Relevant State Law
Mobile Home Residency Law
The California Mobile Home Residency Law (California Civil Code Section 798 – 799.11) sets rules and regulations for mobile homes, specifically regulating the relationship between landlords and residents. The law states that in the case of a change of use of the park, the management must follow specific noticing requirements and appear before a local governmental board, commission, or body to request permits for a change of use.

Requirements for TOC Compliance
To receive compliance credit for this policy, a jurisdiction must demonstrate there is at least one mobile home park (as defined by California’s Mobile Home Park Act) within the jurisdiction. Due to the heightened vulnerability of mobile home parks and the residents who occupy them, a jurisdiction with an adopted mobile home preservation policy that applies to all mobile home parks may receive credit for this policy even if none of the parks are located within TOC areas. If none of the mobile home parks are located within a TOC area, then the jurisdiction must apply its policy jurisdiction-wide.

To comply with the TOC Policy, a jurisdiction must adopt a mobile home preservation policy that meets the minimum standards for ONE of the following options:

1. Establish a Mobile Home Zoning District or Overlay Zone over existing mobile home parks which limits or prohibits the redevelopment of existing parks. o A jurisdiction may allow 100% affordable housing projects to be considered in this zone, conditionally permitted and after public hearings. If a jurisdiction chooses to do this:
 The policy’s affordability requirements must define affordable units as rental housing available to lower-income households earning 80% of Area Median Income (AMI) or less, and ownership housing to lowerand moderate-income households earning 120% of AMI or less.

Jurisdictions should require deeper levels of affordability where feasible or through offering additional incentives.
 Affordable units must have recorded documents that set binding maximum rent or price restrictions to ensure affordability. These requirements must restrict rents and sales prices to affordable levels as defined by the rules of any applicable state or federal affordable housing program. These restrictions must also ensure affordability for at least 55 years for rental housing or at least 45 years for ownership housing.  The ordinance must provide existing mobile home residents with the right to return to a unit in the new development.
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 At the time of application for conversion of units, applicants must be required to produce a Resident Relocation Assistance Plan35 spelling out tenant protections, benefits and required relocation payments for any temporarily or permanently displaced residents.

2. Adopt a Mobile Home Closure Ordinance that requires relocation assistance and conditional approval after public hearings.
o The ordinance must require owners to produce at the time of application a Resident Relocation Assistance Plan36 spelling out tenant protections, benefits, and required relocation payments for any displaced residents.

Submitting Additional Required Documentation
In addition to the standard submission requirements, a jurisdiction must submit documentation of the presence of at least one mobile home park within the jurisdiction.

Preservation Policy 8: Preventing Displacement from Substandard Conditions and Associated Code Enforcement Activities
Description from TOC Policy Resolution: Policies, programs, or procedures designed to minimize the risk of displacement caused by substandard conditions including through local code enforcement activities. This may include proactive rental inspection programs and assistance to landlords for property improvements in exchange for antidisplacement commitments. This policy may be used to fulfill either the housing preservation or protection requirement, but not both.

Purpose
Substandard conditions and physical deterioration represent a key threat to the region’s rental housing stock and unsubsidized affordable housing units. These conditions create health and safety risks for tenants and can lead to condemnation, abandonment, and/or demolition of housing units. The remediation of substandard conditions in unsubsidized affordable housing is not only necessary to preserve this housing but also represents an important anti-displacement strategy. Code enforcement programs need to ensure habitability issues and needs for substantial property repairs do not lead to the permanent displacement of tenants, which also requires maintaining housing stability for tenants during any temporary displacement necessary for repairs. Code enforcement and other programs to address substandard conditions need to be centered in an anti-displacement framework, otherwise these activities can lead to the immediate displacement of vulnerable tenants if properties are deemed uninhabitable.

An effective program which prevents the loss of housing stock due to code issues 35 Resident Relocation Assistance Plan: A plan outlining the benefits and protections afforded to residents to minimize displacement and support relocation, including at a minimum: no penalty for the resident to terminate a lease, payment of reasonable moving expenses, and relocation assistance payments in an amount that is at least three times the monthly fair market rent of a unit comparable in size to the mobile home that the resident is being relocated out of.
36 See requirements detailed in previous footnote.
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provides public support to landlords and low-income homeowners to maintain their properties.

Relevant State Law
California Health and Safety Code (HSC)
HSC Section 17920.3 provides a definition of a substandard building, which includes inadequate sanitation such as a lack of plumbing, ventilation, or heating; structural hazards such as deteriorated floors, walls, or ceilings; faulty weather protection such as defective waterproofing and windows; and so on. Section 17970 – 17972 requires that when a jurisdiction receives a complaint from a tenant, they must inspect the building, document any findings, prescribe a remedy to the property owner, and schedule a reinspection to verify the correction. Section 17980 – 17992 states that once a building is determined to be substandard, the enforcement agency of the jurisdiction cannot require the vacating of residents unless it concurrently requires expeditious demolition or repair to comply with state law. If the tenant cannot safely reside in their unit due to repair, state law requires a property owner to provide affected tenants with compensation for moving expenses; the value of property lost, stolen or damaged in the process of moving; and costs associated with connection charges imposed by utility companies for starting service. The relocation benefit also includes two months of the established fair market rent for the area as determined by the U.S. Department of Housing and Urban Development, and the property owner must return the full security deposit to the tenant.

Requirements for TOC Compliance
To comply with the TOC Policy, a jurisdiction must adopt a policy to prevent displacement from substandard conditions that meets the minimum standards for at least ONE of the following options:

1. Establish an amnesty program to waive fines and fees for property owners with occupied units constructed without the proper permits in exchange for bringing the unit into compliance with health and safety codes.
o Prior to making repairs, the property owner must complete a tenant habitability plan describing how they will maintain habitability for the tenant and any adjacent units while repairs are being performed. If the tenant needs to be relocated for repairs, the plan discusses how the landlord will assist with temporary relocation, which must include offering a nearby available unit at same rent (if landlord owns other properties), paying for moving expenses, and providing relocation assistance to pay for the cost of temporary housing. o As a condition of receiving amnesty for fines and fees, the property owner must agree to continue renting to the existing tenant after repairs are complete with reasonable limits on rent increases for that tenant.

2. Create a low-or no-interest loan or grant program to support lower-income homeowners (including seniors and people with disabilities) with making repairs or modifications to their residences.
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o The program must limit funding to owner-occupied homes that are the homeowner’s primary residence, which includes mobile homes where the mobile home owner rents the lot beneath the home.
o Funding for the program can come from any source that allows home rehabilitation as an eligible use of funds. Potential funding sources could include, but are not limited to, local housing trust funds, county funds, state and federal funds passed through the jurisdiction, grants from philanthropic organizations, and private contributions from businesses or individuals. o Funding recipients must be below 80% of AMI.
o The program must define other eligibility requirements for receiving a loan or grant, eligible uses for funds, and minimum/maximum loan or grant amounts. o The minimum loan/grant amount must be at least $10,000.

Submitting Additional Required Documentation
In addition to the standard submission requirements, a jurisdiction must submit:
• A template of the tenant habitability plan or a document outlining details that must be included in such a plan if a jurisdiction is selecting the amnesty program for unpermitted units.
• The home rehabilitation program’s eligibility requirements and financing terms if a jurisdiction is selecting this option.

III. Affordable Housing Protection Policy Options
To comply with the TOC Policy, a jurisdiction must adopt at least two of the tenant protection/anti-displacement policies listed below:
• Protection Policy 1: “Just Cause” Eviction
• Protection Policy 2: No Net Loss and Right to Return to Demolished Homes • Protection Policy 3: Legal Assistance for Tenants
• Protection Policy 4: Foreclosure Assistance
• Protection Policy 5: Rental Assistance Program
• Protection Policy 6: Rent Stabilization
• Protection Policy 7: Preventing Displacement from Substandard Conditions and Associated Code Enforcement Activities (This policy may fulfill either the housing preservation or protection requirement, but not both.)
• Protection Policy 8: Tenant Relocation Assistance
• Protection Policy 9: Mobile Home Rent Stabilization
• Protection Policy 10: Fair Housing Enforcement
• Protection Policy 11: Tenant Anti-Harassment Protections. 282 of 545

A jurisdiction may meet the requirements with existing adopted policies or as needed, adopt new policies by the TOC Policy compliance deadline. At minimum, policies must apply in TOC areas. Jurisdictions may choose to apply policies beyond the TOC area(s), which could include the entirety of the jurisdiction (i.e., adopting a jurisdictionwide policy). See Section 2 of the guidance document for more information about these requirements.

Protection Policy 1: “Just Cause” Eviction
Description from TOC Policy Resolution: Defines the circumstances for evictions, such as nonpayment of rent, violation of lease terms, or permanent removal of a dwelling from the rental market, with provisions that are more protective of tenants than those established by AB 1482 (2019, Chiu).

Purpose
Just cause ordinances prohibit landlords from ending a tenancy or evicting a tenant without a specific reason. Just cause protections are generally intended to shield tenants from arbitrary evictions that may occur due to economic incentives in a competitive rental market, retaliation against specific tenants, or other instances in which tenants are not at fault. Accordingly, research identifies just cause eviction as a policy with high potential to prevent residential displacement.37 Though state law currently provides just cause protections for some tenants, these protections expire in 2030 and do not cover a wide range of tenancies and housing situations. Moreover, in the absence of local just cause policies and local government infrastructure to implement these protections, tenants may be unaware of their rights under state law and how to utilize them. As a result, multiple jurisdictions throughout the Bay Area and across California have adopted local just cause eviction ordinances that go beyond state law to better ensure stability for tenants.

An effective just cause eviction ordinance will clearly define a limited set of recognized causes for eviction, provide protections for a wide range of tenants and most housing situations, and create processes for local implementation.

Relevant State Law
AB 1482 (Tenant Protection Act of 2019) and SB 567 (2023) While some tenants now have just cause eviction protections due to AB 1482 (the Tenant Protection Act of 2019), this law currently has a sunset of January 1, 2030. SB 567 (2023) modified the protections provided by AB 1482 by creating new requirements for landlords seeking to carry out two types of “no-fault” evictions: evictions for substantial remodels of units and owner move-in evictions. SB 567 also makes landlords who violate the Tenant Protection Act liable in civil court for damages and provides mechanisms for the Attorney General, city attorney, or county counsel to enforce the law. 37 Chapple, K. et. al. (2022). Housing Market Interventions and Residential Mobility in the San Francisco Bay Area. Federal Reserve Bank of San Francisco.
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Requirements for TOC Policy Compliance
To comply with the TOC Policy, a jurisdiction’s just cause ordinance must meet the following minimum requirements:
• The ordinance must not have a sunset date.
• The ordinance must require landlords to file notices of termination of tenancy with a designated local government agency, such as a rent program/board or other city department.
• The ordinance must make the failure to file these notices with a designated agency an affirmative defense for a tenant in an eviction case.

Additionally, the ordinance must also expand on other aspects of statewide just cause protections in at least ONE of the following ways:

1. Limit the legally recognized causes for eviction: The “at-fault” and “no-fault” just causes for eviction allowed by state law can be found in California Civil Code Section 1946.2(b). If choosing this option, a jurisdiction’s just cause policy must include fewer just causes for eviction or define them with greater restrictions to increase protections for tenants.

2. Expand the types of housing and tenancies covered by just cause protections: The protections provided by state law only apply after all tenants have lived in the unit for 12 months, or where at least one tenant has occupied the unit for 24 months. Additionally, California Civil Code Section 1946.2(e) exempts several unit types from these protections. If choosing this option, a jurisdiction’s just cause policy must provide protections to a wider range of tenants and housing types, with the possibility of applying these protections to all renters in the jurisdiction and/or with no minimum period of tenancy to qualify.

Protection Policy 2: No Net Loss and Right to Return to Demolished Homes
Description from TOC Policy Resolution: Include the no net loss provisions currently outlined in SB 330 (2019, Skinner) without a sunset date. Require one-to-one replacement of units that applies the same or a deeper level of affordability, the same number of bedrooms and bathrooms, and comparable square footage to the units demolished. Provide displaced tenants with right of first refusal to rent new comparable units at the same rent as demolished units.

Purpose
The Housing Crisis Act of 2019 was established by SB 330 (2019) and amended by SB 8 (2021). The no net loss provisions in the Housing Crisis Act prevent development projects that require demolition of existing residential structures from reducing the overall housing stock and supply of affordable housing. These provisions create safeguards to ensure that new development increases the housing supply and 284 of 545

maintains or improves existing levels of affordability. The Housing Crisis Act’s right to return protections and relocation benefits aim to prevent permanent displacement of existing lower-income tenants by development projects that require demolition. These protections can enable lower-income tenants to maintain housing in their communities at affordable rents, which deters new development from contributing to displacement, housing instability, and homelessness for vulnerable renters.

Relevant State Law
Housing Crisis Act of 2019
The Housing Crisis Act of 2019 prohibits a jurisdiction from approving a housing development that requires demolition unless the project creates at least as many units as will be demolished. The project must also replace all demolished occupied or vacant “protected units,” which include units deed-restricted for lower-income households within the past five years, units subject to rent control within the past five years, units occupied by lower-income households within the past five years, or units withdrawn from the rental market via Ellis Act within the past 10 years.38 The law also includes protections for existing tenants of units that will be demolished. All existing tenants must be allowed to remain until six months prior to the start of construction. Lower-income occupants are entitled to relocation benefits and a right of first refusal to rent or purchase a comparable unit in the new development at an affordable price. The amount of relocation assistance is defined by California Government Code Sections 7260 – 7277. The Housing Crisis Act of 2019 has a sunset date of January 1, 2030.

Requirements for TOC Policy Compliance
Note: If a jurisdiction implements all provisions from SB 330/SB 8 without a sunset date, then the jurisdiction meets the standards required by and can claim credit for both Protection Policy 2 (No Net Loss and Right to Return to Demolished Homes) and Production Policy 7 (Development Certainty and Streamlined Entitlement Process).

To comply with the TOC Policy, a jurisdiction’s policy for no net loss and right to return must meet the following minimum requirements:
• Include all the no net loss provisions in the Housing Crisis Act with no sunset date, to the extent permitted by state or federal law. These provisions require replacing all demolished units with units of equivalent size39 and replacing demolished protected units with units affordable to low-income households.40 • Include all right of return provisions in the Housing Crisis Act with no sunset date, to the extent permitted by state or federal law. These provisions require providing 38 For more information on “protected units” defined by state law, see California Government Code Section 66300(d)(2)(F)(vi). 39 State law defines equivalent size as containing at least the same number of bedrooms as the units being replaced.
40 For more information on the affordability requirements for replacing protected units, see subparagraphs (B) and (C) of paragraph (3) of subdivision (c) of California Government Code Section 65915. 285 of 545

displaced lower-income tenants with relocation assistance and right of first refusal to a comparable unit at an affordable rent.41
Protection Policy 3: Legal Assistance for Tenants
Description from TOC Policy Resolution: Investments or programs that expand access to legal assistance for tenants threatened with displacement. This could range from a “right to counsel”42 to dedicated public funding for tenant legal assistance.

Purpose
Many tenant protections granted by state law can only be enforced by tenants using the court system to assert their rights, as is the case for the just cause and rent stabilization protections provided by AB 1482 as well as state anti-harassment laws. However, research and advocates have documented tenants’ lack of legal representation in eviction cases and disputes with landlords, while landlords are more commonly represented by attorneys. Legal representation for tenants can ensure greater fairness and due process and increase the likelihood of tenants keeping their housing. Providing legal assistance to tenants helps ensure that tenants have access to legal counsel and are better equipped to defend their rights in court. In recent years, there have been increasing efforts by cities to expand access to legal assistance for tenants facing eviction, which can promote housing stability and prevent homelessness. An effective tenant legal assistance program will include eligibility criteria, a definition of the legal services provided, dedicated funding, and outreach.

Requirements for TOC Policy Compliance
To comply with the TOC Policy, a jurisdiction’s tenant legal assistance program must meet the following minimum requirements:
• The jurisdiction must have a program with secured funding43 that provides ongoing allocations to the program at or above the level identified in Appendix B. The amount contributed can vary by year as long as the total for the relevant four-year OBAG cycle meets the specified target for the jurisdiction. o The required funding amount by tier can be split among any two of the four Protection policies requiring funding, but the jurisdiction will only receive credit toward one policy. For example, a Tier A jurisdiction could choose to 41 For more information on relocation assistance and right of refusal provided to lower-income households, see California Government Code Section 66300(d)(2)(D). 42 “Right to counsel” extends the right to an attorney, required in criminal procedures, to tenants in eviction trials, which are civil procedures.
43 Secured Funding: Housing program funds may be considered secured if they are included in a current budget from a source that is expected to continue and where the use of these funds for the program can be reasonably expected to be approved in subsequent years. The subsequent years’ funding may require future budget approvals or may be dependent on uncertain but expected revenue sources, so long as there is not a known sunset date or other limit. For bond proceeds or other one-time investments, funding can be considered secured if it will be available for investment at the required level at any point in the four-year planning period, expected to align with the OBAG cycle. 286 of 545

spend $30,000 on fair housing enforcement and $70,000 on a tenant legal assistance program, for a total of $100,000. Alternatively, the jurisdiction could spend $100,000 on tenant legal assistance. In either scenario, the jurisdiction would receive credit toward one policy for meeting the $100,000 funding threshold for Protection policies.
• Funding for the program can come from any source that allows tenant legal assistance as an eligible use of funds. Potential funding sources could include, but are not limited to, local housing trust funds, county funds, state and federal funds passed through the jurisdiction, grants from philanthropic organizations, and private contributions from businesses or individuals.
• Jurisdictions that have an existing balance in a tenant legal assistance funding program when submitting final documentation for TOC Policy compliance may count existing funds toward the required total so long as funds are available for expenditure during the four-year planning period (anticipated to align with the OBAG cycle).
• Jurisdictions that have committed legal assistance funds prior to submitting final documentation for TOC Policy compliance may count expended funds toward the required total so long as at least one of the following conditions is met:
o The funds are used to support a program occurring during the relevant fouryear OBAG cycle (e.g., funds are committed to an organization to use for legal assistance services during the OBAG 4 cycle sometime between 2026 and 2030).

AND/OR
o The funds are expended after January 1, 2025.
• The program’s funding terms must define the situations in which a tenant receives legal assistance and set the eligible criteria for who receives assistance. At minimum, eligibility must include eviction and pre-eviction legal services for lowerincome tenants. • A jurisdiction must contract with one or more legal services organizations to provide legal assistance and representation for cases involving eviction and other eligible tenant issues.
• The jurisdiction must make information available for the public on its website regarding the legal service providers who are funded to assist residents.

Submitting Additional Required Documentation
In addition to the standard submission requirements, a jurisdiction must submit:
• A copy of the program’s eligibility criteria if they are not included in the ordinance or other documents establishing the program.
• Documents demonstrating the jurisdiction has contracted or will contract with one or more legal services organizations.
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• A link to a website where the jurisdiction has made information available about legal services for residents.
• Documents demonstrating the jurisdiction has secured funding that meets the minimum requirements for being considered “secured.”
• A schedule of expected funding allocated to the program over the four-year period.

MTC understands that projections of future funding may be imprecise, and the expectation is that a jurisdiction will provide a reasonable projection of future funding based on the best information available at the time of submitting compliance documentation to MTC. At the end of the four-year planning period (expected to align with the OBAG cycle), MTC will expect documentation of actual funding received by the program and invested in projects, which may differ from initial projections.

Protection Policy 4: Foreclosure Assistance
Description from TOC Policy Resolution: Provide a dedicated funding source to support owner-occupied homeowners (up to 120% of Area Median Income (AMI)) at-risk of foreclosure, including direct financial assistance (e.g., mortgage assistance, property tax delinquency, HOA dues, etc.), foreclosure prevention counseling, legal assistance, and/or outreach.

Purpose
Foreclosures occur when homeowners are unable to make mortgage or other debt payments on a property and therefore must forfeit the rights to their home. Homeowners at risk of foreclosure, especially lower-income households, are also vulnerable to community displacement, homelessness, and may struggle to secure housing in the future due to foreclosure related credit issues. Accordingly, local policies providing foreclosure assistance actively seek to keep homeowners in their residence, which prevents displacement and promotes community and household stability. Foreclosure assistance activities may be administered directly by a jurisdiction, but often are administered in partnership with nonprofit organizations. An effective foreclosure assistance program will provide stable annual operating support to qualified partners to support homeowners facing foreclosure.

Relevant State Laws/Programs
California Homeowner Bill of Rights
The California Homeowner Bill of Rights provides some protections to homeowners facing foreclosure, which focus largely on requirements for how loan servicers must act during the foreclosure process.

California Mortgage Relief Program
The California Mortgage Relief Program provides financial assistance for homeowners who have fallen behind on housing payments or property taxes during the COVID-19 288 of 545

pandemic because of COVID-related hardships. Funds will be deployed from the program until they are all allocated, with an end date projected by 2025.

Requirements for TOC Policy Compliance
To comply with the TOC Policy, a jurisdiction’s foreclosure assistance program must meet the following minimum requirements:
• The jurisdiction must have a program with secured funding44 that provides ongoing allocations to the program at or above the level identified in Appendix B. The amount contributed can vary by year as long as the total for the relevant four-year OBAG cycle meets the specified target for the jurisdiction. o The required funding amount by tier can be split among any two of the four Protection policies requiring funding, but the jurisdiction will only receive credit toward one policy. For example, a Tier A jurisdiction could choose to spend $30,000 on foreclosure assistance and $70,000 on a rental assistance program, for a total of $100,000. Alternatively, the jurisdiction could spend $100,000 on foreclosure assistance. In either scenario, the jurisdiction would receive credit toward one policy for meeting the $100,000 funding threshold for Protection policies.
• Funding for the program can come from any source that allows foreclosure assistance as an eligible use of funds. Potential funding sources could include, but are not limited to, local housing trust funds, county funds, state and federal funds passed through the jurisdiction, grants from philanthropic organizations, and private contributions from businesses or individuals.
• Jurisdictions that have an existing balance in a foreclosure assistance funding program when submitting final documentation for TOC Policy compliance may count existing funds toward the required total so long as funds are available for expenditure during the four-year planning period (anticipated to align with the OBAG cycle).
• Jurisdictions that have committed foreclosure assistance funds prior to submitting final documentation for TOC Policy compliance may count expended funds toward the required total so long as at least one of the following conditions is met:
o The funds are used to support a project or program occurring during the relevant four-year OBAG cycle (e.g., funds are committed to an organization to use for foreclosure assistance services during the OBAG 4 cycle sometime between 2026 and 2030).
44 Secured Funding: Housing program funds may be considered secured if they are included in a current budget from a source that is expected to continue and where the use of these funds for the program can be reasonably expected to be approved in subsequent years. The subsequent years’ funding may require future budget approvals or may be dependent on uncertain but expected revenue sources, so long as there is not a known sunset date or other limit. For bond proceeds or other one-time investments, funding can be considered secured if it will be available for investment at the required level at any point in the four-year planning period, expected to align with the OBAG cycle. 289 of 545

AND/OR
o The funds are expended after January 1, 2025.
• A jurisdiction must contract with one or more organizations to provide foreclosure assistance to homeowners earning up to 120% of AMI.
• Foreclosure assistance activities may include tax delinquency forgiveness, emergency direct financial assistance (loans, grants, or other investment), loan modification services, legal services, foreclosure counseling, and proactive, targeted outreach to eligible households.
• The jurisdiction must make information available for the public on its website regarding the foreclosure assistance providers who are funded to assist residents.

Submitting Additional Required Documentation
In addition to the standard submission requirements, a jurisdiction must submit:
• A copy of the program’s eligibility criteria if they are not included in the ordinance or other documents establishing the program.
• Documents demonstrating the jurisdiction has contracted or will contract with one or more foreclosure assistance organizations.
• A link to a website where the jurisdiction has made information available about foreclosure assistance for residents.
• Documents demonstrating the jurisdiction has secured funding that meets the minimum requirements for being considered “secured.”
• A schedule of expected funding allocated to the program over the four-year period.

MTC understands that projections of future funding may be imprecise, and the expectation is that a jurisdiction will provide a reasonable projection of future funding based on the best information available at the time of submitting compliance documentation to MTC. At the end of the four-year planning period (expected to align with the OBAG cycle), MTC will expect documentation of actual funding received by the program and invested in projects, which may differ from initial projections.

Protection Policy 5: Rental Assistance Program
Description from TOC Policy Resolution: Provide a dedicated funding source and program for rental assistance to low-income45 households. 45 In some contexts, state and federal agencies use the term “low-income” to refer to the more specific category of households earning between 50% of AMI and 80% of AMI. However, the use of the term “lowincome households” in MTC Resolution No. 4530 is assumed to be synonymous with the broader category of “lower-income,” or all households below 80% of AMI. 290 of 545

Purpose
Health emergencies, job loss, or other unexpected expenses disproportionately impact lower-income households, and force renters to choose between paying rent and covering other necessary life expenses. Most eviction filings result from unpaid rent totaling less than the cost of one month, according to research from Princeton University’s Eviction Lab.46 For these reasons, rental assistance programs providing lowincome tenants with emergency funds for rent are effective at preventing eviction and stopping displacement.47 In addition to one-time assistance to prevent eviction, some rental assistance programs provide short-term assistance (e.g., six months to one year) to help residents experiencing homelessness become rehoused and achieve stability.

Effective rental assistance programs provide one-time or short-term financial support to lower-income tenants at greatest risk of experiencing eviction and homelessness.

Requirements for TOC Policy Compliance
To comply with the TOC Policy, a jurisdiction’s tenant rental assistance program must meet the following minimum requirements:
• The jurisdiction must have a program with secured funding48 that provides ongoing allocations to the program at or above the level identified in Appendix B. The amount contributed can vary by year as long as the total for the relevant four-year OBAG cycle meets the specified target for the jurisdiction. o The required funding amount by tier can be split among any two of the four Protection policies requiring funding, but the jurisdiction will only receive credit toward one policy. For example, a Tier A jurisdiction could choose to spend $30,000 on fair housing enforcement and $70,000 on a rental assistance program, for a total of $100,000. Alternatively, the jurisdiction could spend $100,000 on rental assistance. In either scenario, the jurisdiction would receive credit toward one policy for meeting the $100,000 funding threshold for Protection policies.
• Funding for the program can come from any source that allows rental assistance as an eligible use of funds. Potential funding sources could include, but are not limited to, local housing trust funds, county funds, state and federal funds passed through the jurisdiction, grants from philanthropic organizations, and private contributions from businesses or individuals.
46 Badger, Emily. (2019). Many Renters Who Fact Eviction Owe Less than $600. The New York Times. 47 Chapple, K. et. al. (2022). Housing Market Interventions and Residential Mobility in the San Francisco Bay Area. Federal Reserve Bank of San Francisco.
48 Secured Funding: Housing program funds may be considered secured if they are included in a current budget from a source that is expected to continue and where the use of these funds for the program can be reasonably expected to be approved in subsequent years. The subsequent years’ funding may require future budget approvals or may be dependent on uncertain but expected revenue sources, so long as there is not a known sunset date or other limit. For bond proceeds or other one-time investments, funding can be considered secured if it will be available for investment at the required level at any point in the four-year planning period, expected to align with the OBAG cycle. 291 of 545

• Jurisdictions that have an existing balance in a rental assistance funding program when submitting final documentation for TOC Policy compliance may count existing funds toward the required total so long as funds are available for expenditure during the four-year planning period (anticipated to align with the OBAG cycle).
• Jurisdictions that have committed rental assistance funds prior to submitting final documentation for TOC Policy compliance may count expended funds toward the required total so long as at least one of the following conditions is met:
o The funds are used to support a project or program occurring during the relevant four-year OBAG cycle (e.g., funds are committed to an organization to use for rental assistance during the OBAG 4 cycle sometime between 2026 and 2030).

AND/OR
o The funds are expended after January 1, 2025.
• The program must define the situations in which a tenant receives rental assistance and set the eligibility criteria for who receives assistance. Assistance must serve lower-income tenants (with incomes at 80% AMI or less), and jurisdictions may decide to target specific income groups or populations deemed most at risk of displacement and/or homelessness. The jurisdiction may choose to include additional eligibility requirements, such as the type(s) of documentation required for a tenant to establish eligibility (e.g., signed self-attestation form, etc.). • Rental assistance can be distributed directly by the jurisdiction, or the jurisdiction can contract with nonprofits and/or community-based organizations to administer the funds.
• The jurisdiction must make information available for the public on its website regarding the rental assistance providers who are funded to assist residents.

Submitting Additional Required Documentation
In addition to the standard submission requirements, a jurisdiction must submit:
• A copy of the program’s eligibility criteria if they are not included in the ordinance or other documents establishing the program.
• Documents demonstrating the jurisdiction has contracted or will contract with one or more rental assistance providers.
• A link to a website where the jurisdiction has made information available about rental assistance available for residents.
• Documents demonstrating the jurisdiction has secured funding that meets the minimum requirements for being considered “secured.”
• A schedule of expected funding allocated to the program over the four-year period.

MTC understands that projections of future funding may be imprecise, and the expectation is that a jurisdiction will provide a reasonable projection of future 292 of 545

funding based on the best information available at the time of submitting compliance documentation to MTC. At the end of the four-year planning period (expected to align with the OBAG cycle), MTC will expect documentation of actual funding received by the program and invested in projects, which may differ from initial projections.

Protection Policy 6: Rent Stabilization
Description from TOC Policy Resolution: Restricts annual rent increases based upon a measure of inflation or other metric, with provisions exceeding those established by AB 1482 (2019, Chiu).

Purpose
Rent stabilization ordinances limit annual rent increases to protect tenants from displacement. Importantly, research finds that rent stabilization policies are effective in preventing displacement and promoting neighborhood stability, particularly when paired with condominium conversion restrictions and just cause eviction regulations. 49 By
decreasing renter housing cost burden over time, rent stabilization leaves tenants with more money to spend on essential needs and in the local economy. The increased stability and affordability created by rent stabilization also has positive consequences for mental and physical health as well as children’s educational outcomes.50 Though state law currently caps rent increases for some tenants, these protections expire in 2030 and allow rent increases beyond what many tenants can afford.51 Moreover, in the absence of local rent stabilization ordinances and local government infrastructure to enforce them, tenants may be unaware of their rights and how to utilize them. As a result, multiple jurisdictions throughout the Bay Area and across California have adopted local rent stabilization ordinances that go beyond state law to better ensure stability for tenants. An effective rent stabilization ordinance will define a maximum annual rent increase and create mechanisms for local enforcement.

Relevant State Laws
AB 1482 (Tenant Protection Act of 2019) and SB 567 (2023) AB 1482 (the Tenant Protection Act of 2019) limits annual rent increases to no more than 5% plus the local Consumer Price Index (a measure of the inflation rate) or 10%, whichever is lower. This law currently has a sunset of January 1, 2030. SB 567 (2023) makes landlords who violate the Tenant Protection Act liable in civil court for damages 49 Chapple, K. et. al. (2022). Housing Market Interventions and Residential Mobility in the San Francisco Bay Area. Federal Reserve Bank of San Francisco.
50 PolicyLink. “Rent Stabilization.”
51 Research shows that the 8% rent cap in place in San Jose from 1979 to 2016 had little impact on displacement, leading the city to lower its rent cap to 5% in 2016. Accordingly, the 10% cap allowed in state law may be similarly ineffective at preventing displacement. For more information see the findings in “Exploring The Effectiveness Of Tenant Protections In Silicon Valley” by the Urban Displacement Project at UC Berkeley.
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and provides mechanisms for the Attorney General, city attorney, or county counsel to enforce the law.

Costa-Hawkins Rental Housing Act
Local rent stabilization ordinances must adhere to the framework established in state law by the Costa-Hawkins Rental Housing Act. This law establishes certain parameters for the policy features of local ordinances, such as prohibiting rent stabilization on single-family homes or buildings constructed after 1995, and allowing landlords to reset rents to market rate after a tenant leaves their unit (known as “vacancy decontrol”).

Local ordinances retain significant room for policy flexibility to respond to local circumstances but must meet Costa-Hawkins’s standards.

Requirements for TOC Policy Compliance
To comply with the TOC Policy, a jurisdiction’s rent stabilization ordinance must meet the following minimum requirements:
• The ordinance must not have a sunset date.
• The ordinance must apply to multifamily rental housing with three or more units, while adhering to the parameters of the Costa-Hawkins Rental Housing Act. If the jurisdiction chooses, the ordinance may apply to additional housing types, such as duplexes.
o The ordinance may allow for exemptions for special housing types (e.g., deed-restricted affordable housing, student housing, assisted living facilities). • A rent stabilization ordinance must limit maximum annual rent increases to be less than those allowed under state law (see Relevant State Laws section above for more information).52
• A jurisdiction must define a local enforcement mechanism (such as a rent board or administrative hearing) whereby tenants can dispute rent increases that exceed legally allowed maximums.53
Submitting Additional Required Documentation
In addition to the standard submission requirements, a jurisdiction must submit documents or regulations describing the processes for enforcing maximum allowable rent increases and deciding disputes regarding rent increases, if these processes are not described in the jurisdiction’s rent stabilization ordinance. 52 The maximum annual rent increases allowed under state law are defined in California Civil Code Section 1947.12, 53 While state law provides some mechanisms for enforcement by the Attorney General and/or city attorney if a landlord raises rent in excess of the legally allowed increase, local administrative bodies like rent boards can provide more easily accessible processes for tenants to dispute rent increases that exceed legally allowed maximums.
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Protection Policy 7: Preventing Displacement from Substandard Conditions and Associated Code Enforcement Activities
Description from TOC Policy Resolution: Policies, programs, or procedures designed to minimize the risk of displacement caused by substandard conditions including through local code enforcement activities. This may include proactive rental inspection programs and assistance to landlords for property improvements in exchange for antidisplacement commitments. This policy may be used to fulfill either the housing preservation or protection requirement, but not both.

Purpose
Substandard conditions and physical deterioration represent a key threat to the region’s rental housing stock and unsubsidized affordable housing units. These conditions create health and safety risks for tenants and can lead to condemnation, abandonment, and/or demolition of housing units. The remediation of substandard conditions in unsubsidized affordable housing is not only necessary to preserve this housing but also represents an important anti-displacement strategy. Code enforcement programs need to ensure habitability issues and needs for substantial property repairs do not lead to the permanent displacement of tenants, which also requires maintaining housing stability for tenants during any temporary displacement necessary for repairs. Code enforcement and other programs to address substandard conditions need to be centered in an anti-displacement framework, otherwise these activities can lead to the immediate displacement of vulnerable tenants if properties are deemed uninhabitable.

An effective program which prevents displacement due to code enforcement protects tenants from displacement when renovations are mandated by code enforcement actions by requiring plans for maintaining habitability and providing public support to landlords on the condition that they provide additional tenant protections.

Relevant State Law
California Health and Safety Code (HSC)
HSC Section 17920.3 provides a definition of a substandard building, which includes inadequate sanitation such as a lack of plumbing, ventilation, or heating; structural hazards such as deteriorated floors, walls, or ceilings; faulty weather protection such as defective waterproofing and windows; and so on. Section 17970 – 17972 requires that when a jurisdiction receives a complaint from a tenant, they must inspect the building, document any findings, prescribe a remedy to the property owner, and schedule a reinspection to verify the correction. Section 17980 – 17992 states that once a building is determined to be substandard, the enforcement agency of the jurisdiction cannot require the vacating of residents unless it concurrently requires expeditious demolition or repair to comply with state law. If the tenant cannot safely reside in their unit due to repair, state law requires a property owner to provide affected tenants with compensation for moving expenses; the value of property lost, stolen or damaged in the process of moving; and costs associated with connection charges imposed by utility 295 of 545

companies for starting service. The relocation benefit also includes two months of the established fair market rent for the area as determined by the U.S. Department of Housing and Urban Development, and the property owner must return the full security deposit to the tenant.

Requirements for TOC Compliance
To comply with the TOC Policy, a jurisdiction must adopt a policy to prevent displacement from substandard conditions that meets the minimum standards for at least ONE of the following options:

1. Offer grants or interest-free loans to landlords to repair substandard or other dangerous/inadequate conditions in exchange for anti-displacement protections for tenants.
o Funding for the program can come from any source that allows repairs of residential units as an eligible use of funds. Potential funding sources could include, but are not limited to, local housing trust funds, county funds, state and federal funds passed through the jurisdiction, grants from philanthropic organizations, and private contributions from businesses or individuals. o Prior to making repairs, the property owner must complete a tenant habitability plan describing how they will maintain habitability for the tenant and any adjacent units while repairs are being performed. If the tenant needs to be relocated for repairs, the plan discusses how the landlord will assist with temporary relocation, which must include offering a nearby available unit at same rent (if landlord owns other properties), paying for moving expenses, and providing relocation assistance to pay for the cost of temporary housing. o As a condition of receiving the grant or loan, the property owner must agree to continue renting to the existing tenant after repairs are complete with reasonable limits on rent increases for that tenant.
o Jurisdictions may set income qualifications for landlords to receive this funding.

2. Implement a rental escrow program where tenants experiencing persistent habitability issues receive rent reductions and rental payments are deposited into an escrow account until code violations are addressed.
o Prior to making repairs, the property owner must complete a tenant habitability plan describing how they will maintain habitability for the tenant and any adjacent units while repairs are being performed. If the tenant needs to be relocated for repairs, the plan discusses how the landlord will assist with temporary relocation, which must include offering a nearby available unit at same rent (if landlord owns other properties), paying for moving expenses, and providing relocation assistance to pay for the cost of temporary housing. o The tenant has the right to reoccupy the unit after repairs are complete. 296 of 545

o While rental funds are in escrow, the landlord can request access to them only for repairs, tenant relocation assistance, and other qualifying expenses. o The rental escrow program must clearly define the circumstances in which a tenant can safely withhold or reduce rent without fear of eviction.

3. Require landlords to complete a tenant habitability plan as part of the permitting process for repairs to address code issues.
o The plan must describe how the landlord will maintain habitability for the tenant and any adjacent units while repairs are being performed. o If the tenant needs to be relocated for repairs, the plan discusses how the landlord will assist with temporary relocation, which must include offering a nearby available unit at same rent (if landlord owns other properties), paying for moving expenses, and providing relocation assistance to pay for the cost of temporary housing.
o The tenant has the right to reoccupy the unit after repairs are complete.

Submitting Additional Required Documentation
In addition to the standard submission requirements, a jurisdiction must submit:
• The rehabilitation grant/loan program’s eligibility requirements and financing terms if a jurisdiction is selecting this option.
• A template of the tenant habitability plan or a document outlining details that must be included in such a plan.

Protection Policy 8: Tenant Relocation Assistance
Description from TOC Policy Resolution: Policy or program that provides relocation assistance (financial and/or other services) to tenants displaced through no fault of their own, with assistance exceeding that required under state law.

Purpose
Relocation assistance can prevent undue burden and hardship for renters in the Bay Area’s high-cost housing market. The majority of Bay Area tenants are lower-income, making less than 80% of Area Median Income (AMI), while nearly one-quarter of the region’s renters are extremely low-income and make less than 30% of AMI.54 Consequently, most tenants are likely to require financial assistance to regain stability if they are displaced from their current housing due to demolition, code enforcement violations, no-fault or no-cause evictions, or other circumstances outside of their control.

An effective relocation assistance policy includes clear definitions of tenant eligibility and required minimum compensation from landlord.
54 U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2013-2017 release.
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Relevant State Laws
Multiple state laws govern situations that require property owners to provide tenants with relocation assistance, including the following:
• Tenant Protection Act of 2019 (AB 1482)
• California Government Code Sections 7260-7277
• Housing Crisis Act of 2019, established by SB 330 (2019) and amended by SB 8 (2021)
• California Health and Safety Code Sections 17975-17975.10 Requirements for TOC Policy Compliance
To comply with the TOC Policy, a jurisdiction’s relocation assistance policy must meet the following minimum requirements:
• Landlords must make relocation payments for all no-cause or no-fault evictions.55 • Jurisdictions can choose to limit assistance to lower-income tenants (those at 80% of AMI or less) or lower- and moderate-income tenants (those at 120% of AMI or less).
• The amount of relocation assistance must be equal to at least three months’ fair market rent, unless another law (e.g., local, state, federal) requires a higher minimum amount.

Protection Policy 9: Mobile Home Rent Stabilization
Description from TOC Policy Resolution: Restricts annual rent increases on mobile home residents based upon a measure of inflation or another metric.

Purpose
A mobile home rent stabilization policy can help protect the affordability and stability of mobile home communities. Mobile home parks are often a unique hybrid of rental housing and ownership housing: residents typically own their homes and rent the lots where the homes are located, which generally enables mobile homes to be purchased at much lower prices than other forms of homeownership. In some cases, a mobile home resident rents the actual mobile home, either from the mobile home owner or the mobile home park. Despite their name, mobile homes are rarely able to be moved off their lots, and so an unaffordable increase in lot rent could force the sale of the mobile home and displacement of the residents. In some communities, mobile home parks comprise a significant portion of unsubsidized affordable housing, and these neighborhoods are 55 No-fault evictions can occur for tenants covered by just cause eviction protections under state law (i.e., AB 1482) or local ordinances, and these no-fault circumstances are defined by the terms of these laws.

For tenants who are not covered by just cause eviction protections under state law or local ordinances, no-cause evictions occur when a landlord chooses not to renew an annual lease or provides a notice to terminate the tenancy that is not required to state a reason. 298 of 545

increasingly being acquired by speculative investors.56 Given these conditions, mobile home rent stabilization can promote longer-term community stability for mobile home residents and prevent displacement of lower-income residents who lack other housing options. An effective mobile home rent stabilization ordinance will include a limit on annual rent increases and processes for ensuring compliance with the policy.

Relevant State Law
SB 940 (2022)
While the Mobile Home Residency Law previously exempted “new construction” from local mobile home rent stabilization laws, SB 940 (2022) limits this exemption to 15 years. Additionally, SB 940 creates a distinction between mobile home parks and mobile home spaces. For individual mobile home spaces within an existing mobile home park, “new construction” is newly constructed spaces “initially rented” after January 1, 1990. For mobile home parks, “new construction” is defined as all spaces in a newly constructed mobile home park for which the permit to operate is first issued on or after January 1, 2023.

Requirements for TOC Policy Compliance
To receive compliance credit for this policy, a jurisdiction must demonstrate there is at least one mobile home park (as defined by California’s Mobile Home Park Act) within the jurisdiction. Due to the heightened vulnerability of mobile home parks and the residents who occupy them, a jurisdiction with an adopted mobile home rent stabilization policy that applies to all mobile home parks may receive credit for this policy even if none of the parks are located within TOC areas. If none of the at-risk mobile home parks in a jurisdiction are located within a TOC area, then the jurisdiction must apply this policy jurisdiction-wide.

To comply with the TOC Policy, a jurisdiction’s mobile home rent stabilization ordinance must meet the following minimum requirements:
• A mobile home rent stabilization ordinance must define maximum annual rent increases for both mobile home spaces (i.e., lot rent) and mobile homes as ONE of the following:
o A flat rate increase of up to 5%. A jurisdiction may choose to set the maximum allowable rent increase below 5%.
o A rate increase linked to the local CPI, which is a measure of inflation. A jurisdiction must set the maximum allowable rent increase no higher than 100% of CPI, or the jurisdiction could choose to set the maximum allowable rent increase at a smaller percentage of CPI.
56 Arnold, C., Benincasa, R., and Childs, M. 2021. How the government helps investors buy mobile home parks, raise rent and evict people. National Public Radio. 299 of 545

o Some combination of the two standards described above (e.g., a maximum annual rent increase limited to 60% of CPI or 5%, whichever is lower). • Some form of vacancy control within constitutional limits. • A jurisdiction must define a local enforcement mechanism (such as a rent board or administrative hearing) whereby mobile home residents can dispute rent increases that exceed legally allowed maximums.

Submitting Additional Required Documentation
In addition to the standard submission requirements, a jurisdiction must submit:
• Documentation of the presence of at least one mobile home park within the jurisdiction.
• Documents or regulations describing the processes for enforcing maximum allowable rent increases and deciding disputes regarding rent increases if these processes are not described in the jurisdiction’s rent stabilization ordinance.

Protection Policy 10: Fair Housing Enforcement
Description from TOC Policy Resolution: Policy, program, or investments that support fair housing testing, compliance monitoring, and enforcement.

Purpose
Fair housing laws aim to ensure that people have equal access to housing regardless of their race, national origin, family status, religion, sex, disability, or other characteristics that are known as “protected classes.”57 Across the region, people of color, people with disabilities, and other protected classes are disproportionately represented in a number of indicators of housing need that put them at greater risk of displacement.58 Consistent enforcement of existing fair housing law is a critical strategy to overcome patterns of segregation and foster inclusive communities. Local jurisdictions can further fair housing by supporting fair housing organizations who conduct fair housing testing, investigate complaints, and assist with filing complaints with the state and/or federal agencies who can take administrative action. In response to fair housing complaints, fair housing organizations can also provide mediation between housing providers and complainants, or file lawsuits against those found to be in violation of the law. 57 The Fair Housing Act is a federal law passed in 1968 and amended several times thereafter that protects individuals from experiencing housing discrimination based on the following characteristics: race, color, national origin, religion, sex, familial status, and disability. California’s Fair Employment and Housing Act expands on the protected classes defined by federal law by also prohibiting housing discrimination based on the following characteristics: sexual orientation, gender identity and gender expression, genetic information, marital status, source of income, citizenship, primary language, and immigration status.
58 For more information on disparities in housing needs, see ABAG’s Housing Needs Data Packets. 300 of 545

Relevant State Laws
Fair Employment and Housing Act
California’s Fair Employment and Housing Act prohibits those engaged in the housing business from discriminating against protected classes. The California Department of Fair Employment and Housing is responsible for enforcing state fair housing laws, which includes investigating and settling fair housing complaints.

AB 686
Affirmatively Furthering Fair Housing, established by AB 686 (2018), requires that local jurisdictions take meaningful actions that address significant disparities in housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws.

Requirements for TOC Policy Compliance
To comply with the TOC Policy, a jurisdiction’s fair housing enforcement policy/program must meet the following minimum requirements:
• The jurisdiction must have a program with secured funding59 that provides ongoing allocations to the program at or above the level identified in Appendix B. The amount contributed can vary by year as long as the total for the relevant four-year OBAG cycle meets the specified target for the jurisdiction. o The required funding amount by tier can be split among any two of the four Protection policies requiring funding, but the jurisdiction will only receive credit toward one policy. For example, a Tier A jurisdiction could choose to spend $30,000 on fair housing enforcement and $70,000 on a tenant legal assistance program, for a total of $100,000. Alternatively, the jurisdiction could spend $100,000 on fair housing enforcement. In either scenario, the jurisdiction would receive credit toward one policy for meeting the $100,000 funding threshold for Protection policies.
• Funding for the program can come from any source that allows fair housing enforcement as an eligible use of funds. Potential funding sources could include, but are not limited to, local housing trust funds, county funds, state and federal funds passed through the jurisdiction, grants from philanthropic organizations, and private contributions from businesses or individuals.
59 Secured Funding: Housing program funds may be considered secured if they are included in a current budget from a source that is expected to continue and where the use of these funds for the program can be reasonably expected to be approved in subsequent years. The subsequent years’ funding may require future budget approvals or may be dependent on uncertain but expected revenue sources, so long as there is not a known sunset date or other limit. For bond proceeds or other one-time investments, funding can be considered secured if it will be available for investment at the required level at any point in the four-year planning period, expected to align with the OBAG cycle. 301 of 545

• Jurisdictions that have an existing balance in a fair housing enforcement funding program when submitting final documentation for TOC Policy compliance may count existing funds toward the required total so long as funds are available for expenditure during the four-year planning period (anticipated to align with the OBAG cycle).
• Jurisdictions that have committed fair housing enforcement funds prior to submitting final documentation for TOC Policy compliance may count expended funds toward the required total so long as at least one of the following conditions is met:
o The funds are used to support a project or program occurring during the relevant four-year OBAG cycle (e.g., funds are committed to an organization to use for legal assistance services during the OBAG 4 cycle sometime between 2026 and 2030).

AND/OR
o The funds are expended after January 1, 2025.
• A jurisdiction must contract with one or more fair housing service providers to serve its constituents and provide fair housing enforcement. Alternatively, the jurisdiction can establish its own fair housing testing and enforcement program with staff who conduct fair housing testing on a regular basis,60 investigate complaints of discrimination, provide information to tenants and landlords, and refer cases to the State Department of Fair Employment and Housing.61 • The jurisdiction must make information available for the public on its website regarding the fair housing services available to assist residents.

Submitting Additional Required Documentation
In addition to the standard submission requirements, a jurisdiction must submit:
• Documents demonstrating the jurisdiction has contracted or will contract with one or more fair housing enforcement organizations, if applicable. • A link to a website where the jurisdiction has made information available about fair housing services for residents.
• Documents demonstrating the jurisdiction has secured funding that meets the minimum requirements for being considered “secured.”
• A schedule of expected funding allocated to the program over the four-year period. MTC understands that projections of future funding may be imprecise, and the expectation is that a jurisdiction will provide a reasonable projection of future funding based on the best information available at the time of submitting 60 In 2017, the City of Seattle conducted their own in-house civil rights testing program where housing tests were conducted by email, phone and in-person.
61 The City of Santa Barbara has a Fair Housing Enforcement Officer on staff who completes these actions.
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compliance documentation to MTC. At the end of the four-year planning period (expected to align with the OBAG cycle), MTC will expect documentation of actual funding received by the program and invested in projects, which may differ from initial projections.

Protection Policy 11: Tenant Anti-Harassment Protections Description from TOC Policy Resolution: Policy or program that grants tenants legal protection from unreasonable, abusive, or coercive landlord behavior.

Purpose
Despite existing state law prohibiting landlords from using threats or intimidation for the purpose of influencing tenants to vacate a unit, landlord harassment continues to be an issue of concern and driver of informal evictions in many communities across the Bay Area. State law lacks specific language defining harassing behavior, which can make violations difficult to prove in court. As a result, multiple jurisdictions throughout the Bay Area and across California have adopted anti-harassment ordinances that go beyond state law to better ensure stability for vulnerable tenants.62 Informal evictions through tenant harassment are a persistent problem for low-income, undocumented, and/or limited English-speaking residents because these populations are especially vulnerable to landlord actions.63 Anti-harassment ordinances can reduce such displacement pressures by clarifying what constitutes harassment and enabling affected tenants as well as jurisdictions to stop harassment. Anti-harassment policies can also support habitability improvements by reducing the risk of retaliation against tenants who report habitability issues to landlords, thereby improving the quality of housing. An effective tenant anti-harassment ordinance defines prohibited harassing behaviors and mechanisms for enforcement.

Relevant State Laws
California Civil Code Section 1940.2
State law prohibits a landlord from using “force, willful threats, or menacing conduct” to influence a tenant to vacate a dwelling. The law also prohibits a landlord from threatening to disclose information regarding the immigration or citizenship status of a tenant. Tenants are entitled to up to $2,000 per violation if they prevail in a civil action. 62 Mercury News article from June 15, 2022, reporting on tenant harassment in Concord and the ordinance passed in response by the City Council. East Bay Times article from July 13, 2021, reporting on tenant harassment in Richmond and the ordinance passed in response by the City Council. 63 Desmond, M. (2012) Eviction and the Reproduction of Urban Poverty. AJS: 118(1) 88-133; Desmond, M. C. Gershenson, and B. Kiviat (2016) Forced Relocation and Residential Instability among Urban Renters. Social Service Review 89 (2). Greenberg, D. C. Gershenson and M. Desmond (2016) Discrimination in Evictions: Empirical Evidence and Legal Challenges. Harvard Civil Rights-Civil Liberties Law Review 51: 115-158.
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California Civil Code Section 1942.5
State law prohibits a landlord from retaliating against a tenant for exercising their legal rights. Landlords who violate this prohibition are liable for actual damages, attorney’s fees, and punitive damages of up to $2,000 per retaliatory act.

Requirements for TOC Policy Compliance
To comply with the TOC Policy, a jurisdiction’s tenant anti-harassment policy must meet the following minimum requirements:
• The tenant anti-harassment policy must define harassing behaviors, which at minimum shall include behaviors prohibited by state law as well as the following:
o Any behavior to prevent tenant organizing. Landlords may not impinge tenants’ ability to engage in organizing activities regarding issues of common interest or concern to other tenants, including unreasonable restrictions on distributing literature to and/or meeting with other residents at properties owned by the same landlord.
o Refusal to accept or acknowledge receipt of a tenant's lawful rent payment. o Requesting information or documentation relating to immigration or citizenship status, unless otherwise required by federal law. o Failing to perform repairs or maintenance or threatening to fail to perform repairs or maintenance required by contract or by state, county, or local housing, health, or safety laws.
• The policy must state that the city or county attorney as well as the impacted tenant may bring a civil action or request an injunction in response to harassment. • The policy must establish penalties for landlords found to be in violation, including fines, attorneys' fees, and punitive damages. The policy shall also define a violation of the ordinance as an affirmative defense for a tenant in an eviction proceeding.
• The policy must establish noticing requirements for landlords to provide each tenant with an information sheet outlining anti-harassment protections and any other tenant protections in the jurisdiction (e.g., rent stabilization, just cause, relocation assistance). The sheet must include links to the city website and at least one local tenant legal services organization.

IV. Commercial Stabilization Policy Options
To comply with the TOC Policy, a jurisdiction must adopt at least one of the commercial stabilization policies listed below:
• Commercial Stabilization Policy 1: Small Business and Non-Profit Overlay Zone • Commercial Stabilization Policy 2: Small Business and Non-Profit Preference Policy
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• Commercial Stabilization Policy 3: Small Business and Non-Profit Financial Assistance Program
• Commercial Stabilization Policy 4: Small Business Advocate Office A jurisdiction may meet the requirements with existing adopted policies or as needed, adopt new policies by the TOC Policy compliance deadline. At minimum, policies must apply in TOC areas. Jurisdictions may choose to apply policies beyond the TOC area(s), which could include the entirety of the jurisdiction (i.e., adopting a jurisdictionwide policy). See Section 2 of the guidance document for more information about these requirements.

Commercial Stabilization Policy 1: Small Business and Non-Profit Overlay
Description from TOC Policy Resolution: Establish boundaries designated for an overlay, triggering a set of protections and benefits should development impact small businesses (including public markets) or community-serving non-profits.

Purpose
To prevent displacement caused by transit-oriented development, jurisdictions can protect existing small businesses and community-serving non-profits by affording protections and benefits beyond what is available jurisdiction-wide. A jurisdiction may select this policy to preserve the rich community of small businesses and non-profits located in areas that are subject to new development. An “overlay zone” is a district that superimposes additional regulations over existing zoning districts.64 A successful overlay zone offers benefits such as an operating subsidy, eviction protections, and relocation requirements.

Requirements for TOC Policy Compliance
To comply with the TOC Policy, a jurisdiction’s small business and non-profit overlay policy must meet the following minimum requirements:
• Jurisdictions must define “small business” and “community-serving non-profit” to establish the minimum requirements to qualify for protections. • Offer at least one protection or benefit specific to the community and expected to prevent displacement.

Submitting Additional Required Documentation
In addition to the standard submission requirements, a jurisdiction must submit a copy of the policy’s eligibility criteria and description of protections and/or benefits provided, if they are not included in the ordinance or other documents establishing the program. 64 Planetizen Planopedia. “What is an Overlay District?” 305 of 545

Commercial Stabilization Policy 2: Small Business and Non-Profit Preference Policy
Description from TOC Policy Resolution: Give priority and a right of first offer to local small businesses and/or community-serving non-profits when selecting a tenant for new market-rate commercial space.

Purpose
Transit-oriented development has the potential to displace existing small businesses and non-profits as new development may increase commercial rent costs. This policy would require that owners or managers of applicable commercial spaces provide a preference to small businesses and/or community-serving non-profits when selecting tenants by offering them the right of first offer. A jurisdiction would select this policy to protect their existing community of non-profits and small businesses from displacement.

Requirements for TOC Policy Compliance
To comply with the TOC Policy, a jurisdiction’s small business and non-profit preference policy must meet the following minimum requirements:
• Jurisdictions must define “small business” and “community-serving non-profit” to establish the minimum requirements to qualify for preference. • Establish a preference policy that prioritizes small businesses and non-profits when selecting new tenants by offering them the right of first offer. Jurisdictions may apply such a policy on publicly-owned properties, as part of the entitlement process for a new development, as a condition of a small business support program, or in other applicable circumstances.

Submitting Additional Required Documentation
In addition to the standard submission requirements, a jurisdiction must submit a copy of the policy’s eligibility criteria and preference details, if they are not included in the ordinance or other documents establishing the program.

Commercial Stabilization Policy 3: Small Business and Non-Profit Financial Assistance Program
Description from TOC Policy Resolution: Dedicated funding program for any impacted small business and community-serving non-profits.

Purpose
As jurisdictions promote transit-oriented development in their communities, they must also take steps to prevent displacement and gentrification in these areas. By providing direct financial assistance, jurisdictions can support small businesses and non-profits through any community-wide transition that comes with new transit-oriented development. Jurisdictions may choose this policy to protect their small businesses and community-serving non-profits that enrich the fabric of their community. 306 of 545

Requirements for TOC Policy Compliance
To comply with the TOC Policy, a jurisdiction’s small business and non-profit financial assistance program must meet the following minimum requirements:
• Jurisdictions must define “small business” and “community-serving non-profit” to establish the minimum requirement to quality for financial assistance. • The jurisdiction must have a program with secured funding65 that provides financial assistance to stabilize small businesses and non-profits located in the TOC areas. The jurisdiction could choose to offer this assistance to businesses and non-profits in additional areas as well.
• Provide technical assistance and up-to-date information online regarding funding opportunities and deadlines.

Submitting Additional Required Documentation
In addition to the standard submission requirements, a jurisdiction must submit:
• A copy of the eligibility criteria and program details if they are not included in the ordinance or other documents establishing the program.
• Documents demonstrating the jurisdiction has secured funding that meets the minimum requirements for being considered “secured.”
• A schedule of expected funding allocated to the program over the four-year period. MTC understands that projections of future funding may be imprecise, and the expectation is that a jurisdiction will provide a reasonable projection of future funding based on the best information available at the time of submitting compliance documentation to MTC. At the end of the four-year planning period (expected to align with the OBAG cycle), MTC will expect documentation of actual funding received by the program and invested in projects, which may differ from initial projections.

Commercial Stabilization Policy 4: Small Business Advocate Office Description from TOC Policy Resolution: Provide a single point of contact for small business owners and/or a small business alliance.

Purpose
A jurisdiction’s small business economy is bolstered by technical assistance, educational workshops, advertising and exposure, and the development of a network of neighboring businesses. These types of support could be offered by a jurisdiction or an 65 Secured Funding: Housing program funds may be considered secured if they are included in a current budget from a source that is expected to continue and where the use of these funds for the program can be reasonably expected to be approved in subsequent years. The subsequent years’ funding may require future budget approvals or may be dependent on uncertain but expected revenue sources, so long as there is not a known sunset date or other limit. For bond proceeds or other one-time investments, funding can be considered secured if it will be available for investment at the required level at any point in the four-year planning period, expected to align with the OBAG cycle. 307 of 545

outside contractor and are best utilized when there is a single point of contact. A jurisdiction may choose this policy to commit to the resilience of their small business community.

Requirements for TOC Policy Compliance
To comply with the TOC Policy, a jurisdiction’s small business advocate office policy must meet the following minimum requirements:
• Provide a single point of contact for small business owners to connect with a technical support resource. The single point of contact could be a jurisdictional staff member or an outside contractor. Outside contractors could be a staff member of the nearest Small Business Center (SBC) or Small Business Development Center (SBDC)66 In the case of an outside contractor, the jurisdiction must have dedicated staff oversight.

Submitting Additional Required Documentation
In addition to the standard submission requirements, a jurisdiction must submit:
• A copy of the eligibility criteria and program details if they are not included in the ordinance or other documents establishing the program.
• If an outside contractor is used as the point of contact, a description of the jurisdiction’s approach for oversight of the contractor. 66 SBCs are part of the California Network of Small Business and Technical Assistance Centers, funded by CalOSBA, while SBDCs are part of a nationwide network funded by the U.S. Small Business Administration.
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Appendix B: Jurisdictions by Funding Tier
Table 1 lists the jurisdictions in each funding tier and the jurisdiction’s required minimum four-year funding commitment for each policy selected that requires a funding commitment. Note: all Bay Area jurisdictions are listed, although not all jurisdictions have TOC areas.

For the policies in the Protection category, the required funding amount by tier can be split among any two of the four policies, but the jurisdiction will only receive credit toward one policy. For example, a Tier A jurisdiction could choose to spend $30,000 on fair housing enforcement and $70,000 on a rental assistance program, for a total of $100,000. Alternatively, the jurisdiction could spend $100,000 on a single policy, such as rental assistance. In either scenario, the jurisdiction would receive credit toward one policy for meeting the $100,000 funding threshold for Protection policies.

Table 1: Jurisdictions by Funding Tier
Jurisdiction
Very Lowand LowIncome
RHNA Tier
Production 2
and Production 6
Preservation 1
and
Preservation 5
Protection 3,
Protection 4,
Protection 5, and
Protection 10
Yountville 30 A $1,000,000 $500,000 $100,000
Calistoga 50 A $1,000,000 $500,000 $100,000
Ross 54 A $1,000,000 $500,000 $100,000
Unincorporated
Napa 61 A $1,000,000 $500,000 $100,000
Colma 69 A $1,000,000 $500,000 $100,000
Belvedere 77 A $1,000,000 $500,000 $100,000
Monte Sereno 83 A $1,000,000 $500,000 $100,000
Sebastopol 86 A $1,000,000 $500,000 $100,000
Cotati 94 A $1,000,000 $500,000 $100,000
Portola Valley 115 A $1,000,000 $500,000 $100,000
Unincorporated
Solano 130 A $1,000,000 $500,000 $100,000
Cloverdale 141 A $1,000,000 $500,000 $100,000
Woodside 142 A $1,000,000 $500,000 $100,000
Atherton 148 A $1,000,000 $500,000 $100,000
St. Helena 163 A $1,000,000 $500,000 $100,000
Dixon 175 A $1,000,000 $500,000 $100,000
Pinole 190 A $1,000,000 $500,000 $100,000
Los Altos Hills 197 A $1,000,000 $500,000 $100,000
Fairfax 235 A $1,000,000 $500,000 $100,000
Hillsborough 244 A $1,000,000 $500,000 $100,000
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Jurisdiction
Very Lowand LowIncome
RHNA Tier
Production 2
and Production 6
Preservation 1
and
Preservation 5
Protection 3,
Protection 4,
Protection 5, and
Protection 10
Suisun City 255 A $1,000,000 $500,000 $100,000
Piedmont 257 A $1,000,000 $500,000 $100,000
East Palo Alto 260 A $1,000,000 $500,000 $100,000
Clayton 267 A $1,000,000 $500,000 $100,000
San Pablo 273 A $1,000,000 $500,000 $100,000
American Canyon 278 A $1,000,000 $500,000 $100,000
Half Moon Bay 285 A $1,000,000 $500,000 $100,000
Healdsburg 299 A $1,000,000 $500,000 $100,000
Tiburon 303 A $1,000,000 $500,000 $100,000
Sausalito 315 A $1,000,000 $500,000 $100,000
Corte Madera 336 A $1,000,000 $500,000 $100,000
Benicia 339 A $1,000,000 $500,000 $100,000
San Anselmo 398 A $1,000,000 $500,000 $100,000
Mill Valley 413 B $1,400,000 $600,000 $200,000
Morgan Hill 413 B $1,400,000 $600,000 $200,000
Oakley 440 B $1,400,000 $600,000 $200,000
Larkspur 459 B $1,400,000 $600,000 $200,000
Albany 486 B $1,400,000 $600,000 $200,000
Brisbane 500 B $1,400,000 $600,000 $200,000
Moraga 501 B $1,400,000 $600,000 $200,000
El Cerrito 526 B $1,400,000 $600,000 $200,000
Hercules 542 B $1,400,000 $600,000 $200,000
Martinez 551 B $1,400,000 $600,000 $200,000
Orinda 587 B $1,400,000 $600,000 $200,000
Windsor 607 B $1,400,000 $600,000 $200,000
Rohnert Park 629 B $1,400,000 $600,000 $200,000
Brentwood 634 B $1,400,000 $600,000 $200,000
Emeryville 710 C $2,000,000 $700,000 $200,000
Saratoga 715 C $2,000,000 $700,000 $200,000
Newark 732 C $2,000,000 $700,000 $200,000
Belmont 769 C $3,000,000 $700,000 $200,000
Petaluma 787 C $2,000,000 $700,000 $200,000
Los Altos 789 C $2,000,000 $700,000 $200,000
Pittsburg 812 C $2,000,000 $700,000 $200,000
Foster City 819 C $2,000,000 $700,000 $200,000
Los Gatos 847 C $2,000,000 $700,000 $200,000
Pacifica 848 C $2,000,000 $700,000 $200,000
Pleasant Hill 892 C $2,000,000 $700,000 $200,000
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Jurisdiction
Very Lowand LowIncome
RHNA Tier
Production 2
and Production 6
Preservation 1
and
Preservation 5
Protection 3,
Protection 4,
Protection 5, and
Protection 10
Novato 898 C $2,000,000 $700,000 $200,000
Millbrae 906 C $2,000,000 $700,000 $200,000
Lafayette 943 C $2,000,000 $700,000 $200,000
Danville 1,028 C $2,000,000 $700,000 $200,000
Gilroy 1,054 C $2,000,000 $700,000 $200,000
Vallejo 1,059 C $2,000,000 $700,000 $200,000
Vacaville 1,081 C $2,000,000 $700,000 $200,000
San Bruno 1,109 D $3,000,000 $900,000 $300,000
San Carlos 1,164 D $3,000,000 $900,000 $300,000
Menlo Park 1,166 D $3,000,000 $900,000 $300,000
Campbell 1,186 D $3,000,000 $900,000 $300,000
Napa 1,214 D $3,000,000 $900,000 $300,000
Antioch 1,248 D $3,000,000 $900,000 $300,000
Fairfield 1,256 D $3,000,000 $900,000 $300,000
Unincorporated
San Mateo 1279 D $3,000,000 $900,000 $300,000
Unincorporated
Santa Clara 1305 D $3,000,000 $900,000 $300,000
Richmond 1,325 D $3,000,000 $900,000 $300,000
San Rafael 1,349 D $3,000,000 $900,000 $300,000
San Leandro 1,357 D $3,000,000 $900,000 $300,000
Union City 1,358 D $3,000,000 $900,000 $300,000
Burlingame 1,360 D $3,000,000 $900,000 $300,000
South San
Francisco 1,373 D $3,000,000 $900,000 $300,000
Unincorporated
Sonoma 1,608 E $4,000,000 $1,200,000 $300,000
Hayward 1,692 E $4,000,000 $1,200,000 $300,000
Dublin 1,710 E $4,000,000 $1,200,000 $300,000
Unincorporated
Marin 1734 E $4,000,000 $1,200,000 $300,000
Redwood City 1,758 E $4,000,000 $1,200,000 $300,000
Cupertino 1,880 E $4,000,000 $1,200,000 $300,000
Santa Rosa 1,919 E $4,000,000 $1,200,000 $300,000
Unincorporated
Alameda 1,972 E $4,000,000 $1,200,000 $300,000
Concord 2,036 E $4,000,000 $1,200,000 $300,000
Livermore 2,075 E $4,000,000 $1,200,000 $300,000
Daly City 2,105 E $4,000,000 $1,200,000 $300,000
Alameda 2,239 E $4,000,000 $1,200,000 $300,000
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Jurisdiction
Very Lowand LowIncome
RHNA Tier
Production 2
and Production 6
Preservation 1
and
Preservation 5
Protection 3,
Protection 4,
Protection 5, and
Protection 10
San Ramon 1,359 E $4,000,000 $1,200,000 $300,000
Palo Alto 2,452 E $4,000,000 $1,200,000 $300,000
Walnut Creek 2,611 E $4,000,000 $1,200,000 $300,000
Milpitas 2,655 E $4,000,000 $1,200,000 $300,000
Pleasanton 2,758 E $4,000,000 $1,200,000 $300,000
San Mateo 2,800 E $4,000,000 $1,200,000 $300,000
Unincorporated
Contra Costa 3,266 F $8,000,000 $2,400,000 $400,000
Berkeley 3,854 F $8,000,000 $2,400,000 $400,000
Mountain View 4,370 F $8,000,000 $2,400,000 $400,000
Santa Clara 4,525 F $8,000,000 $2,400,000 $400,000
Sunnyvale 4,677 F $8,000,000 $2,400,000 $400,000
Fremont 5,736 F $8,000,000 $2,400,000 $400,000
Oakland 10,261 G $40,000,000 $8,000,000 $1,000,000
San Jose 23,775 G $40,000,000 $8,000,000 $1,000,000
San Francisco 32,881 G $40,000,000 $8,000,000 $1,000,000 312 of 545

Appendix C: Log of Revisions in Version 1.1
Administrative Guidance (April 2025)
Revisions made in Version 1.1 of the TOC Policy Administrative Guidance integrate insights gleaned from further engagement with local partners since the publication of Version 1.0 in fall 2024. These revisions clarify the criteria for stations subject to the TOC Policy and provide greater specificity regarding the compliance requirements across the four policy components: land use density, affordable housing, parking management, and station access.

Guidance Section Description of Revision Page
III. Policy Applicability –
Types of Transit
Language removed that required a planned
stop/station to be confirmed as subject to the TOC
Policy by the adoption of the Plan Bay Area 2050+
Final Blueprint. This change better aligns with
policymaker direction in MTC Resolution No. 4530 that
the TOC Policy applies to all allocations of regional
discretionary capital funding for fixed-guideway transit extensions regardless of when these allocations occur.
6 III. Policy Applicability –
Types of Transit
Language revised to specify that the criteria for
determining whether a planned station is sufficiently
defined is based completion of environmental review
process using a specific station location. However,
MTC staff retain discretion to determine whether a
station location is sufficiently defined prior to
completion of environmental review, in particular in
situations where the station location has already been
solidified by the project sponsor.
6 III. Policy Applicability –
Types of Transit
Language added to clarify that a project can be in Bin
1 of either Final Blueprint (as advanced into the
environmental process/CEQA) or the adopted Final
Plan for Plan Bay Area 2050+ for a planned station to
be subject to the 2026 compliance deadline.

Additionally, TOC Policy compliance is optional for
projects that are in Bin 1 in the Final Blueprint but not in the adopted Final Plan. This revision provides
greater flexibility to incorporate any potential changes by the Commission and ABAG Executive Board to the
Plan Bay Area 2050+ Transportation Project List.
6 III. Policy Applicability –
Exemption for FixedGuideway Stations
Scheduled for Closure
Language added to exempt stations scheduled to
close (as identified in Plan Bay Area) from TOC Policy
requirements. This revision reflects that policies
9 313 of 545

Guidance Section Description of Revision Page
needed for TOC Policy compliance have limited impact
if a station is scheduled to close.

III. Policy Applicability –
Exemption for Stations
with Service Two Days
or Fewer per Week
Language added to exempt stations with current and
future service only two days or fewer per week from
TOC Policy requirements. This revision acknowledges
that stations with very limited service are less likely to be able to support the development and circulation
patterns envisioned in the TOC Policy.
9 III. Policy Applicability –
Partial Exemption for
Tier 4 TOC Areas
Outside Urban Service
Areas
Language added to exempt county governments from
complying with the density requirements for Tier 4
TOC areas outside of the Urban Service Area. These
TOC areas remain subject to all other TOC Policy
requirements. While these areas are not yet
envisioned to support dense development, other
aspects of the TOC Policy remain important and
impactful in these lower-density communities.
9 III. Policy Applicability –
Multi-Jurisdiction TOC
Areas
Language removed that permitted multiple jurisdictions
to submit a single compliance application for a multijurisdiction TOC area. The TOC Policy Submission Portal is not configured to accept a single application in these instances, and each jurisdiction will need to
submit separate documentation.
10 V. Guidance for TOC
Policy Submission –
Section 1: Density for
New Residential and
Commercial Office
Development
Language added to clarify which zoning districts are
subject to the TOC Policy requirements. Zoning
districts that only permit less common forms of
residential development (live/work, ADUs, transitional
housing, etc.) are not counted for residential density
calculations. Commercial and mixed-use zones where
any type of office is listed as a permitted use are the only zones required to be included for commercial
office intensity calculations. Jurisdictions may exclude industrial zones that permit office development from
commercial office intensity calculations. The specificity added to this section promotes alignment between
TOC Policy density requirements and local
development contexts.
12-13
V. Guidance for TOC
Policy Submission –
Section 1: Density for
New Residential and
Commercial Office
Development
Description of the average density calculation revised
to clarify that it is provided for illustrative purposes, but the calculation itself will be performed within the TOC Policy Submission Portal. These revisions clarify that
local jurisdictions do not need to calculate average
14 314 of 545

Guidance Section Description of Revision Page
densities in their TOC areas, as these calculations are completed in the Portal.

V. Guidance for TOC
Policy Submission –
Section 1: Density for
New Residential and
Commercial Office
Development
Added language noting that jurisdictions can count
residential density available through incentives only if the California Department of Housing and Community
Development (HCD) allowed this for the jurisdiction’s
capacity calculations in a certified Housing Element.

This change provides flexibility to use incentive-based zoning for TOC Policy compliance purposes, but only if
aligned with HCD’s determination of a jurisdiction’s
development capacity.
25 V. Guidance for TOC
Policy Submission –
Section 3: Parking
Management
Language changed to specify that a jurisdiction must
explicitly allow shared and unbundled parking to
receive compliance credit. This change simplifies the
compliance assessment process by creating a clear
standard for what constitutes “allowing” shared and
unbundled parking.
35 V. Guidance for TOC
Policy Submission –
Section 3: Parking
Management
Language revised to clarify that whatever geography a
jurisdiction uses within a TOC area to comply with AB
2097 can also be used to comply with all TOC Policy
parking management requirements. This change is
intended to minimize work for jurisdictions by
preventing the need to determine two separate
geographies for where to apply requirements for both
AB 2097 and the TOC Policy.
36-37
V. Guidance for TOC
Policy Submission –
Section 3: Parking
Management
Language revised to clarify that jurisdictions are limited to the five policies listed from MTC/ABAG’s Parking
Policy Playbook for complying with the complementary
policies for parking management requirement. This
change resolves previous ambiguity as to which
policies are options for complying with this
requirement.
37 V. Guidance for TOC
Policy Submission –
Section 4: Station
Access and Circulation
Minor language changes to clarify documentation
requirements to demonstrate compliance with
prioritizing active transportation projects.
40 V. Guidance for TOC
Policy Submission –
Section 4: Station
Access and Circulation
Minor language changes to clarify documentation
requirements to demonstrate compliance with
complete streets.
41 315 of 545

Guidance Section Description of Revision Page
Appendix A: TOC
Policy Housing and
Commercial
Stabilization Policy
Requirements –
Production Policy 1:

Inclusionary Zoning
Added language to clarify that inclusionary zoning
policy has to meet the required income mix regardless
of whether a feasibility study was completed. This
change aligns with the intent communicated in
Resolution 4530 that inclusionary zoning policies
create units for low-income households.
3 Appendix A: TOC
Policy Housing and
Commercial
Stabilization Policy
Requirements –
Production Policy 4:

Public Land for
Affordable Housing
Added language to clarify that jurisdictions should use the same standards as the Housing Element for
determining sites suitable for affordable housing.

Clarified that any publicly owned sites used to comply
with this policy option do not need to be deemed
surplus under the Surplus Lands Act. Provided a link
to ABAG’s Public Lands Playbook as a resource for
making inventory of publicly owned sites. These
changes do not substantively change existing
requirements but provide additional guidance for how
these requirements can be met.
10-11
Appendix A: TOC
Policy Housing and
Commercial
Stabilization Policy
Requirements –
Preservation Policy 4:

Condominium
Conversion Restrictions
Revised minimum requirement for in-lieu fee. Instead
of a minimum of $100,000 per rental unit converted to
a condominium, the fee must be sufficient to mitigate
the loss of rental housing that results from
condominium conversions. Jurisdictions are required
to submit a brief written explanation of how they
determined the fee level. Revising the $100,000
minimum fee standard provides jurisdictions with
greater flexibility to design policies that reflect local context.
25 Appendix A: TOC
Policy Housing and
Commercial
Stabilization Policy
Requirements –
Preservation Policy 7:

Mobile Home
Preservation
Revised “Tenant Relocation Assistance Plan”
language that appears throughout the guidance
document to instead be a “Resident Relocation
Assistance Plan” for this policy option. Requirements
for this plan were reworded to better fit the mobile
home context. These changes do not substantively
change existing requirements but resolve potential
confusion created by the previous language.
33 316 of 545
ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COTATI AMENDING TITLE 17 (LAND USE) OF THE COTATI MUNICIPAL CODE TO CREATE THE

SANTERO WAY (SW) AND TRANSIT ORIENTED COMMUNITIES (TOC) ZONING DISTRICTS; IMPLEMENT OTHER TOC RELATED ZONING AND LAND USE POLICIES; INCORPORATE NO-NET-LOSS HOUSING POLICIES; AND MAKE OTHER ASSOCIATED UPDATES TO THE MUNICIPAL CODE; FILE NO. PA25-05 WHEREAS, on March 24, 2015, the Cotati City Council adopted its updated General Plan (Resolution No. 2015-12), which identifies the City’s vision for the future and provides a framework to guide decisions on growth and development consistent with the quality of life desired by Cotati citizens. On March 24, 2015, the Cotati City Council also certified the City of Cotati General Plan Environmental Impact Report (EIR), which reviewed potentially significant environmental effects resulting from the plan’s implementation and developed measures and policies to mitigate those impacts to less-than-significant levels; and WHEREAS, on May 24, 2023, the Cotati City Council adopted the 2023-2031 Housing Element Update to the General Plan (“Housing Element”), which includes goals and policies related to housing, including establishment of objective design standards for multifamily plex and single-family housing, and facilitation of increased housing development; and WHEREAS, as described in the Housing Element, Cotati’s population increased 4.4% between 2010 and 2020, compared to the population of Sonoma County as a whole, which increased only 1% between 2010 and 2020, and this growth may increase housing demand in Cotati; and
WHEREAS, in September 2023, the Association of Bay Area Governments (ABAG) and Metropolitan Transportation Commission (MTC) published draft administrative guidance on their Transit-Oriented Communities (TOC) policies. These policies are intended to intensify land uses within one half-mile of transit hubs with the primary goal of increasing the overall supply of housing while also supporting the creation of jobs and increasing transit ridership, in keeping with the Plan Bay Area 2050. While adoption of the TOC policies is voluntary for Bay Area jurisdictions, TOC compliance will be required to retain full eligibility for One Bay Area Grant (OBAG) funds by 2026; and
WHEREAS, on November 6, 2023, the City of Cotati held a public scoping meeting as the first step in the California Environmental Quality Act (CEQA) process once a determination has been made that an environmental impact report (EIR) is required for a project. Per CEQA Guidelines § 15082 and 15083, a Notice of Preparation was circulated for a 30-day period ending on November 22, 2023, and the scoping meeting was held to solicit comments on the scope of the EIR. This meeting was an opportunity for the public, agencies, and stakeholders to comment on 317 of 545 the specific issues that should be addressed in the environmental review. Individuals who were unable to attend the scoping meeting were invited to email or mail their comments to the Community Development Department; and
WHEREAS, on April 2024, staff identified an opportunity for the environmental analysis being prepared for the Santero Way Specific Plan (SWSP) Update to be expanded to additionally analyze the potential impacts of implementing ABAG/MTC TOC policies on the other eligible parcels within the ½ mile radius surrounding the Cotati SMART station. Including this analysis into the environmental impact report (EIR) already underway was approved by the City Council; and
WHEREAS, on July 19, 2024, the City of Cotati issued a second Notice of Preparation to identify that the scope of the environmental impact analysis was being expanded to analysis the potential impacts of full TOC implementation in Cotati; and WHEREAS, on August 5, 2024, the Planning Commission held a public workshop and second CEQA scoping meeting to assess new project alternatives and policy options resulting from the April decision to expand the scope of the project environmental analysis; and WHEREAS, on November 1, 2024, a Public Review Draft Specific Plan and Draft Environmental Impact Report (EIR) were made available for public comment for a 45-day period, as is required by State law. Only one comment was received during this comment period which came from CalTrans; and
WHEREAS, one purpose of the Cotati Municipal Code is to ensure that the General Plan, including the Housing Element, may be implemented and another purpose is to codify which land uses are allowed in all zoning districts of the City while also setting the standards for said land uses in order to preserve the quality of life in Cotati; and WHEREAS, the Legislature of the State of California has in Government Code Sections 65302, 65560, and 65800 conferred upon local governments the authority to adopt regulations designed to promote the public health, safety, and general welfare of its citizenry; and WHEREAS, on September15, 2025, the Planning Commission of the City of Cotati and on September 24, 2025, the City Council of the City of Cotati each held workshops to discuss review and discuss the Santero Way and TOC Rezoning project, heard public comment, and provided direction to staff to develop a draft ordinance to amend CMC Title 17 (Land Use Code) to implement the project; and
WHEREAS, on November 3, 2025, the Planning Commission of the City of Cotati held a duly noticed public hearing to review the proposed ordinance adopting amendments to create the Santero Way and Transit Oriented Communities (TOC) zoning districts, as well as implement other TOC related policies. After receiving the staff report, reviewing a presentation from the Planning Division, and considering all oral and written comments submitted to the City regarding the Ordinance, the Planning Commission voted to approve a resolution recommending adoption of the proposed ordinance; and
318 of 545
WHEREAS, December 9, 2025, the City Council of the City of Cotati held a duly noticed public hearing on the proposed ordinance to establish objective design standards for multifamily plex and single family housing and to make updates to facilitate housing development, received the staff report, reviewed a presentation from the Planning Division, and considered all oral and written comments submitted to the City regarding the Ordinance prior to voting to introduce the Ordinance.

NOW THEREFORE THE CITY COUNCIL OF THE CITY OF COTATI DOES ORDAIN AS FOLLOWS:

SECTION 1: Recitals.

The above recitals are true and correct and are incorporated into the findings herein.

SECTION 2: Record
The Record of Proceedings (“Record”) upon which the City Council makes its decision includes, but is not limited to: 1) the 2015 General Plan, 2) the FEIR certified for the 2015 General Plan, 3) the 2023-2031 Housing Element Update adopted by the City Council in 2023 and the associated Mitigated Negative Declaration, 4) the 2025 Santero Way Specific Plan (SWSP) Update and the associated Environmental Impact Report (EIR) analyzing the potential impacts of the SWSP Update and 5) all staff reports, City files and records, and other documents prepared for and/or submitted to the City Council related to adoption of the amendments to Title 17 (Land Use) of the Cotati Municipal Code to establish the Santero Way (WS) and Transit Oriented Communities (TOC) zoning districts and implement other identified changes to the Cotati Municipal Code to facilitate housing development.

SECTION 3: General Plan Consistency
The Council of the City of Cotati does hereby find that the amendments to Title 17 (Land Use) of the Cotati Municipal Code to establish the Santero Way (WS) and Transit Oriented Communities (TOC) zoning districts and implement other identified changes to the Cotati Municipal Code to facilitate housing development, as set forth in this Ordinance, are in the best interest of the City in that they will further established goals, policies, and implementation programs of the General Plan, including the Housing Element and Santero Way Specific Plan to reduce greenhouse gas production and improve air quality by providing additional opportunities for alternative transportation and walkability; will maintain the supply of developable land and expand housing opportunities through increased density and increased development certainty, including on infill sites along E. Cotati Avenue and Santero Way; will direct that the layout and design of new development encourages the use of alternative transportation; will conserve resources by encouraging the efficient use of land and allowing more intense development of both residential and commercial land uses; and use land appropriately by increasing the intensity of development in close proximity to the train station and along one of the City’s primary commercial corridors.
319 of 545
Specifically, these amendments are consistent with and implement the following Housing Element policies and programs:

Program 1-8: Residential Building Decarbonization: Continue to permit and encourage mixed uses and higher densities on in-fill and vacant sites in Priority Development Areas (PDAs) with public serving facilities, such as medical clinics, schools, and grocery stores, to discourage sprawl and encourage short vehicle trips and/or alternative forms of transportation.

Policy H-2.3 While the City is able to accommodate its share of the regional housing need without rezoning during the current Housing Element period, to the extent necessary, the City will consider land use re-designation and promotion of existing innovations like the Cottage Housing Ordinance in order to accommodate development capacity that affirm all other goals of the City’s General Plan and maintain Cotati’s rural character.

Policy H-2.6 Encourage mixed use development, including residential and live/work uses in commercial and office areas where the viability of the nonresidential activities would not be adversely affected.

Policy H-2.11 Encourage housing development on existing infill sites in order to efficiently utilize existing infrastructure.

In addition, these amendments are consistent with and implement the following General Plan policies and programs:

Policy CON 2.1: Improve air quality through continuing to require a compact development pattern that focuses growth in and around existing urbanized areas, locating new housing near places of employment, encouraging alternative modes of transportation, and requiring projects to mitigate significant air quality impacts.

Policy CON 3.10: Ensure that the layout and design of new development and significant remodels encourages the use of transportation modes other than automobiles and trucks.

Policy LU 1.1: Maintain a supply of developable mixed-use, commercial, industrial, and residential lands sufficient to meet desired growth and economic needs over the planning period.

Policy LU 2.5: Locate medium and higher density housing within easy walking or bicycling distance of public facilities, services, transit, and major employers.

Policy LU 2.10: Encourage mixed-use, pedestrian-, and transit-oriented development, with a focus on the Hub and major corridors.

SECTION 4: Compliance with the California Environmental Quality Act.

The Council of the City of Cotati does hereby find that the proposed ordinance to amend Title 17 (Land Use) of the Cotati Municipal Code to establish the Santero Way (WS) and Transit Oriented Communities (TOC) zoning districts and implement other identified changes to the Cotati Municipal Code to facilitate housing development.is consistent with the requirements of the California Environmental Quality Act (CEQA) as the impacts of the proposed ordinance have been analyzed in the Santero Way Specific Plan EIR (SCH#2023100654) and further the proposed CMC changes are consistent with the program Final Environmental Impact Report 320 of 545
(SCH# 2013082037) for the Cotati General Plan Update that was certified on March 24, 2015 (Resolution Number 2015-11) and the Mitigated Negative Declaration certified for the 2023- 2031 Housing Element (SCH # 2013082037) adopted and certified on June 2, 2023; that this ordinance is consistent with and implements the City’s adopted General Plan, including the 2023-2031 Housing Element and Santero Way Specific Plan Update, and no new environmental impacts peculiar to the project site(s) have been realized or identified, therefore no additional environmental analysis is required under CEQA, including Section 15183, and therefore pursuant to Section 15168 of the CEQA Guidelines, as such no further environmental review is required.

SECTION 5: Amendment to the Cotati Municipal Code. Section 17.20.020, Zoning maps and zoning districts Table 2-1 is amended as follows:

Table 2-1
Zoning Districts
Zoning
Map
Symbol
Name of
Zoning District
General Plan Designation
Implemented by Zoning District
Location
within
Transect
Low Density and Neighborhood Zones
OSC Open Space,
Conservation
Open Space MORE
RURAL
OSR Open Space,
Recreation
Parks –
RR Rural
Residential
Rural –
RVL Residential
Very Low
Density
Low Density Residential –
NL Neighborhood,
Low Density
Low-Medium Density Residential –
NM Neighborhood,
Medium
Density
Medium Density Residential TO
NU Neighborhood,
Urban
High Density Residential –
321 of 545
Table 2-1
Zoning Districts
Zoning
Map
Symbol
Name of
Zoning District
General Plan Designation
Implemented by Zoning District
Location
within
Transect
Mixed Use Corridor and Downtown Zones
CE Commercial,
East Cotati
Ave. Corridor
Office, General Commercial –
CG Commercial,
Gravenstein
Corridor
Highway Commercial, General
Commercial
–
CA Commerce
Avenue
Downtown Specific Plan –
NG Northern
Gateway
Downtown Specific Plan –
CD Downtown
Commercial
General Commercial, La Plaza
Specific Plan
–
HC Historic Core Downtown Specific Plan –
--
--
LP La Plaza Downtown Specific Plan
SWSP Santero Way
Specific Plan
Santero Way Specific Plan
TOC Transit
Oriented
Community
General Commercial, High Density
Residential; Santero Way Specific
Plan; Open Space/Parks
MORE
URBAN
Districts
CI Commercial/
Industrial
District
Commercial/ Industrial Industrial
322 of 545
Table 2-1
Zoning Districts
Zoning
Map
Symbol
Name of
Zoning District
General Plan Designation
Implemented by Zoning District
Location
within
Transect
Special Purpose and Overlay Zones
CP Coordinated
Planning
Overlay
All
MHP Mobilehome
Park Overlay
All Residential
MHPS Senior
Mobilehome
Park Overlay
All Residential Citywide
PF Public Facility Public Facilities
TOC Transit
Oriented
Community
Overlay
Specific Plan; Open Space/Parks;
Low-Medium Density Residential
Medium Densit Residential; High
Density Residential; General
Commercial;
SECTION 6: Amendment to the Cotati Municipal Code. Section 17.20.030, Purposes of the zoning districts B. Mixed Use Corridor and Downtown Zones., is amended, as follows:

B. Mixed Use Corridor and Downtown Zones.

1. CE (Commercial, East Cotati Avenue Corridor) Zoning District. The CE zoning district is a mixed use classification that is applied to specific parcels on both sides of East Cotati Avenue, from Arthur Street east to the city limits. The corridor is appropriate for a wide range of retail and service land uses that primarily serve local residents and businesses, including offices, shops, personal and business services, and small-scale restaurants, where structures fronting East Cotati Avenue are generally two stories. Residential uses may also be accommodated as part of mixed use projects, at a maximum density of fifteen dwelling units per acre. The allowable intensity of nonresidential development is determined by Section 17.24.030 (Zoning district site planning and building standards) of this title. The CE 323 of 545
zoning district is consistent with and implements the office, and general commercial land use designations of the general plan.

2. CG (Commercial, Gravenstein Corridor) Zoning District. The CG zoning district is a mixed use classification that is applied to both sides of the Gravenstein Highway from Highway 101, west to the city limits. The corridor is appropriate for a wide range of retail and service land uses that serve both the local population and regional markets, including retail uses and restaurants, with additional uses such as personal and business services, and offices limited to the second floor along the Gravenstein frontage, where structures fronting Gravenstein are generally two stories. Residential uses may also be accommodated as part of mixed use projects, at a maximum density of fifteen dwelling units per acre. The allowable intensity of nonresidential development is determined by Section 17.24.030 (Zoning district site planning and building standards) of this title. The CG zoning district is consistent with and implements the general commercial land use designations of the general plan.

3. CD (Downtown Commercial) Zoning District. The CD zoning district is applied to the downtown area of Cotati, encompassing the historic plaza area, and extending south along Old Redwood Highway to Page Street, and north to Highway 101, including properties along Commerce Avenue. The CD zoning district is appropriate for a wide variety of land uses, with retail and other pedestrian-oriented uses on the ground floors of street fronting structures, and residential units or offices allowed on second or third floors, at a maximum density of fifteen dwelling units per acre. Street fronting structures are generally two stories. The allowable intensity of non-residential development is determined by Section 17.24.030 (Zoning district site planning and building standards) of this title. The CD zoning district is consistent with and implements the general commercial land use designation of the general plan, and the La Plaza specific plan.

4. TOC (Transit Oriented Community) Zoning District. The TOC District is applied to all areas appropriate for a variety of higher-density mixed use development types, neighborhoodserving commercial, and light-manufacturing/maker type uses on parcels with frontage on East Cotati Avenue and the northern portion of Santero Way, closest to the train station. The allowable base density range is 25-35 units per acre (25 u/a minimum, 35 u/a maximum) and the allowable Floor Area Ratio (F.A.R.) for commercial development is a minimum of 1.0 and maximum of 3.0.

5. SW (Santero Way Specific Way) Zoning District. The SW District is applied to areas appropriate for a variety of higher-density residential and mixed-use development types, including multi-family housing, condominiums, and townhomes. The allowable residential density range is 25-35 units per acre (25 u/a minimum, 35 u/a maximum) and the allowable Floor Area Ratio (F.A.R.) for commercial development is a minimum of 1.0 and maximum of

3.0. Commercial uses are limited to neighborhood serving retail and live-work applications associated with a residential development project. Unlike the TOC District, 100% commercial development is not allowed in the SW District. Additionally, select allowances for lowintensity industrial land uses are applied to parcels with existing buildings to facilitate maximum functionality prior to anticipated redevelopment.

SECTION 7: Amendment to the Cotati Municipal Code. Section 17.22.020, Tables 2-4, is amended, as follows:

17.22.020 Allowable land uses and planning permit requirements. 324 of 545
Table 2-4
Allowed Land Uses and Permit Requirements for Transit Corridors and Specific Plan Districts P Permitted use, zoning clearance required
MUP Minor use permit
UP Use permit required
S Permit requirement set by specific use regulations
– Use not allowed
Land Use(1) Permit Required by District Specific Use Regulations HC LP NG CA TOC SW Industry, Manufacturing and Processing, Wholesaling
Agricultural product processing – – – – -- –
Artisan/craft product manufacturing MUP MUP MUP MUP MUP MUP See Note 5 Below Brewery – Brew pub MUP MUP MUP MUP MUP --
Brewery – Production – – – -- -- –
Construction contractor – – – – -- UP*
Food and beverage product
manufacturing
– – – – -- MUP*
Furniture and fixtures manufacturing,
cabinet shop
– – – -- MUP MUP*
Industrial research and development – -- – MUP MUP MUP* Laboratory – Medical, analytical,
research and development
-- -- – MUP MUP MUP*
Laundry, dry cleaning plant – – – – -- –
Manufacturing/processing – Light – – – -- MUP MUP*
Manufacturing/processing – Medium
intensity
– – – -- -- –
Manufacturing/processing – Heavy – – – – -- –
Media production -- -- – P P MUP*
Printing and publishing -- -- – MUP MUP MUP*
Recycling – Reverse vending
machine
-- -- – – – –
Recycling – Small collection facility -- -- – -- -- – 17.42.150 Recycling – Medium collection
facility
– – – -- -- – 17.42.150
Storage – Outdoor – – -- -- UP UP* 17.42.140
Storage – Personal storage facility
(mini-storage)
– – – – – –
Storage – Warehouse, indoor storage – – – -- – –
Wholesaling and distribution – – – UP UP –
Winery – Boutique – -- UP UP UP – 325 of 545
Table 2-4
Allowed Land Uses and Permit Requirements for Transit Corridors and Specific Plan Districts P Permitted use, zoning clearance required
MUP Minor use permit
UP Use permit required
S Permit requirement set by specific use regulations
– Use not allowed
Land Use(1) Permit Required by District Specific Use Regulations HC LP NG CA TOC SW Winery – Production – – – -- -- –
Recreation, Education and Public Assembly Uses
Adult-oriented business – – – – -- – 17.40
Commercial recreation facility –
Indoor

UP UP UP UP UP UP
Commercial recreation facility –
Outdoor
– – – -- – –
Conference/convention facility -- -- UP) UP UP --
Health/fitness facility UP P P) P P MUP
Library, museum P -- P P P --
Meeting facility, public or private -- UP UP) UP UP --
Park, Playground P P P P P P
School – Specialized
education/training

UP ) UP) UP UP UP
Sports and entertainment assembly – – UP UP – --
Studio – Art, dance, martial arts,
music, etc.

P P P) P P P
Theater UP -- MUP MUP MUP UP*
Residential Uses
Accessory dwelling unit P P P P P P 17.42.170
Emergency/transitional shelter S S S S S -- 17.42.072
Home occupation P P P P P P 17.42.080
Live/work unit UP UP P UP UP UP 17.42.090
Low barrier navigation center P P P P P –
Mobile Home Park UP UP UP UP UP UP 17.42.11
Multifamily Plex housing -- -- -- -- UP MUP 17.39.03 & 17.39.04 Multifamily housing 10+ units S S S S UP P 17.28.050 & 17.39.030 Residential care facility for the
elderly (RCFE)
-- UP UP UP UP UP
Residential care facility, 7 or more
clients
-- UP – – UP UP
Residential component of a mixed P P P P P P 17.39.030, 17.39.040, 17.42.100 326 of 545
Table 2-4
Allowed Land Uses and Permit Requirements for Transit Corridors and Specific Plan Districts P Permitted use, zoning clearance required
MUP Minor use permit
UP Use permit required
S Permit requirement set by specific use regulations
– Use not allowed
Land Use(1) Permit Required by District Specific Use Regulations HC LP NG CA TOC SW use project
Supportive housing P P P P P P
Retail Trade(3)
Accessory retail or services P P P P P P
Alcoholic beverage sales –
Associated with a restaurant(4)
P P P P P P 17.42.030
Alcoholic beverage sales-off sale UP UP UP UP UP – 17.42.030 Antique or collectible store P P P P P –
Artisan/craft project manufacturing MUP MUP MUP MUP MUP MUP Artisan shop P P P P P MUP
Auto and vehicle sales and rental – UP – MUP UP –
Auto parts sales with no installation
services
– -- P P P –
Bar, tavern UP UP UP UP UP –
Brewery-Brew pub MUP MUP MUP MUP MUP
Building and landscape materials
sales
– -- – MUP P –
Construction and heavy equipment
sales and rental
– – – -- -- – 17.42.130
Convenience store -- -- UP UP UP –
Drive-through retail – -- – -- – – 17.42.070
Extended hour retail UP MUP P P MUP –
Farm supply and feed store – -- – -- MUP –
Farmers market(8) MUP MUP MUP MUP MUP --
Formula-based fast food restaurant -- -- S S S – 17.42.071 Furniture, furnishings and appliance
store
UP MUP MUP MUP MUP –
General retail – Less than 5,000 sq.
ft.

P P P P P P
General retail – 5,000 sq. ft. to
20,000 sq. ft.

P MUP P P P MUP 327 of 545
Table 2-4
Allowed Land Uses and Permit Requirements for Transit Corridors and Specific Plan Districts P Permitted use, zoning clearance required
MUP Minor use permit
UP Use permit required
S Permit requirement set by specific use regulations
– Use not allowed
Land Use(1) Permit Required by District Specific Use Regulations HC LP NG CA TOC SW General retail – More than 20,000 sq.
ft.
-- -- MUP MUP MUP –
Groceries, specialty foods – 10,000
sq. ft. or less
P P P P P –
Groceries, specialty foods – More
than 10,000 sq. ft.
-- -- P UP P –
Mobilehome, boat, or RV sales – – MUP MUP MUP –
Night club UP UP UP – UP –
Outdoor display and sales MUP MUP MUP MUP MUP – 17.42.130 Plant nursery – MUP – MUP MUP –
Restaurant – Outdoor dining on
private property(6)
P/
MUP
P/
MUP
P/
MUP
P/
MUP
P/MUP P 17.42.130(E)
Restaurant – Outdoor dining in
public right-of-way
P P P P P P 17.42.130
Restaurant, cafe, coffee shop P P P P P P
Retail complex -- -- UP UP UP –
Retail display gallery P P P P P P 17.90.020
Retail Tobacco Store -- -- -- -- -- --
Second hand store UP UP UP UP MUP –
Service station (nonfossil fuels sales) -- -- -- UP UP – 17.42.180 Tasting room P P P P P P
Warehouse retail – UP UP UP UP –
Services – Business, Financial, Professional

ATM P P P P P P
Bank, financial services P P P P P –
Business support service P P P P P –
Medical services – Doctor office UP P P P P –
Medical services – Clinic, urgent
care
UP – P P P –
Office – Accessory P P P P P P
Office – Business/service MUP P P P P –
Office – Government UP MUP MUP MUP MUP --
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Table 2-4
Allowed Land Uses and Permit Requirements for Transit Corridors and Specific Plan Districts P Permitted use, zoning clearance required
MUP Minor use permit
UP Use permit required
S Permit requirement set by specific use regulations
– Use not allowed
Land Use(1) Permit Required by District Specific Use Regulations HC LP NG CA TOC SW Office – Processing UP(2) MUP MUP MUP MUP –
Office – Professional/administrative P P P(2) P P –
Veterinary clinic, animal hospital P P P P P MUP
Services – General
Accessory retail or services P P P P P P 17.42.015
Adult day care UP UP UP UP UP --
Catering service – – – MUP MUP –
Child day care center P P P P P UP
Drive-through service – -- – – – – 17.42.070
Equipment rental – – – UP UP – 17.42.140
Kennel, animal boarding – -- – -- -- –
Lodging – Bed and breakfast inn
(B&B)

P P P UP P UP
Lodging – Boutique hotel or motel UP UP P P P –
Lodging – Hotel UP UP P P UP –
Maintenance service – Client site
services
– – – MUP MUP –
Mortuary, funeral home -- – – UP UP –
Personal services P P P P P MUP
Personal services – Restricted -- – – – – –
Public safety facility -- UP UP UP UP --
Repair service – Equipment, large
appliances, etc.
– – – P P –
Social service organization -- UP(2) UP(2 UP UP --
Vehicle services – Major repair/body
work
– – – -- -- –
Vehicle services – Minor
maintenance/repair
– – – UP UP –
Transportation, Communications and Infrastructure
Ambulance, taxi, or limousine – – – – -- – 329 of 545
Table 2-4
Allowed Land Uses and Permit Requirements for Transit Corridors and Specific Plan Districts P Permitted use, zoning clearance required
MUP Minor use permit
UP Use permit required
S Permit requirement set by specific use regulations
– Use not allowed
Land Use(1) Permit Required by District Specific Use Regulations HC LP NG CA TOC SW storage
Broadcasting studio UP(2) UP(2) UP(2) UP MUP –
Electric vehicle charging station(7) P P P P P P 14.38
Mobility Hub P P P P P --
Parking facility, public or
commercial

UP UP UP UP UP --
Telecommunications facility S S S S S S 17.44
Transit station or terminal -- UP UP UP UP --
Utility facility UP UP UP UP UP UP
Key to Zoning District Symbols
CE East Cotati Avenue Corridor CI Commercial/Industrial District CG Gravenstein Highway Corridor IG General Industrial District CD Downtown Commercial PF Public Facility District
Notes:
(1) See Article 9 for land use definitions.
(2) Use allowed only on second or upper floors, in compliance with Section 17.24.050(C), Limitation on the Location of Allowable Land Uses, or behind an allowed ground floor street frontage use. (3) See Section 17.42.165, Retail use maximum floor area. (4) When the Department of Alcoholic Beverage Control allows customers under twenty-one years of age on the premises.
(5) Artisan/craft product manufacturing uses proposed in the CE, TOC, CG, CD, HC, LP, NG, and CA districts must be located within buildings and suites designed and oriented to engage and encourage pedestrian activity and interaction with the surrounding uses. Uses in these districts must also include retail storefront presence and design characteristics, with production and manufacturing design elements (such as loading doors, material storage, etc.) oriented away from the primary entrances and street frontages of developments where they are located. (6) MUP required for outdoor dining on private property in the CD district when the dining use abuts a residential land use.
(7) Permitted as an accessory use.
(8) Fees for farmers market planning permit applications shall be calculated at fifty percent of the fees set forth in the fee schedule as described in Section 17.60.060, Application fees. Use permit approval shall require that the review authority first find that the proposed use will be compatible with any nearby residential uses. Notices of public hearings 330 of 545
shall be mailed to property owners within a radius from the subject site of six hundred feet, or greater at the director’s discretion.
*Use Allowed only in existing (as of 2025) structures as an interim occupancy until property is redeveloped. Uses are not permitted upon or after redevelopment of SW designed properties.

SECTION 8: Amendment to the Cotati Municipal Code. Section 17.24.030, Zoning district site planning and building standards, is amended in include Table 2-17 and Table 2-18 as follows:

Table 2-17
SW Zone Development Standards
Development
Standard
SW Zone Requirement
Setbacks – See CMC Section 17.30.020 for exceptions.

Front 0-10 ft.

Side – Interior (each) 10 ft.

Side – Street side 0-10 ft.

Rear 10 ft.

Accessory structures See CMC Section 17.42.160 (Residential accessory uses and structures)
Building frontage – Building frontage types allowed, design requirements, and allowed encroachments into setbacks. Frontage types are defined in CMC Section 17.24.040.

Allowed frontage types Porch, forecourt, stoop, common yard, gallery Allowed encroachments See CMC Section 17.30.020(F), Table 3-1 Site coverage – Maximum percentage of site area that may be covered by structures.

Maximum coverage 75%
Height limit – Maximum allowable height of structures. See CMC Section 17.30.040 for height measurement, and height limit exceptions. See Figure 2-2.

Maximum height 40 ft. 331 of 545
Table 2-18
TOC Zone Development Standards
Development
Standard TOC Zone Requirement
Setbacks – See Section 17.30.020 of the CMC for exceptions.

Front 0-10 ft.

Side – Interior (each) 10 ft. abutting a residential zone, none required otherwise Side – Street side 0-10 ft.

Rear 20 ft. abutting a residential zone, 10 ft. required otherwise Accessory structures See CMC 17.42.160 (Residential accessory uses and structures) Building frontage – Building frontage types allowed, design requirements, and allowed encroachments into setbacks. Frontage types are defined in Section 17.24.040.

Allowed frontage types Porch, forecourt, stoop, shopfront, gallery Allowed encroachments See CMC Section 17.30.020(F), Table 3-1 Site coverage – Maximum percentage of site area that may be covered by structures.

Maximum coverage 100%
Height limit – Maximum allowable height of structures. See CMC Section 17.30.040 for height measurement, and height limit exceptions. See Figure 2-2.

Maximum Height 45 ft.; 55 ft. with use permit
Accessory structures See CMC Section 17.42.020
SECTION 9: Amendment to the Cotati Municipal Code. Section 17.30.082 Residential conversions is amended to include demolition as follows:
§ 17.30.082 Residential conversions and demolition.
332 of 545
The use of a structure designed and constructed as a dwelling with a nonresidential use, and the use of a structure designed and constructed for nonresidential use as a dwelling shall and/or the demolition of a residential unit(s) comply with the following requirements:

A. Residential to Nonresidential Conversion. The conversion of an existing dwelling in RR, RVL, NL, NM, or NU zones for occupancy by a nonresidential use shall require a minor use permit.

Minor use permit approval shall require that the review authority first make one of the following findings:

1. An equivalent number and type of new housing will be constructed elsewhere in the city;

2. There exists an adequate supply of housing units in the city to meet current and projected housing needs; or

3. The proposed conversion is essential for the health and safety of the community.

B. Nonresidential to Residential Conversion. The use of a structure that was designed and constructed for nonresidential use as a dwelling shall require that the structure first be brought into compliance with all applicable current requirements of this land use code, including the applicable zoning district, and the building code.

C. Demolition of residential unit(s). The demolition of a residential unit (or units) is subject to the no net loss provisions of state law including tenant relocation funds to be provided by the developer; the right of first refusal for existing residents to be offered newly developed units at the same affordability level of the occupied units proposed to be demolished.

SECTION 10: Amendment to the Cotati Municipal Code. Section 17.36.040 General parking regulations. is amended as follows:

17.36.040 General parking regulations.

A. Location of Parking on a Site. Parking and loading spaces shall be located as required in Section 17.36.090(A).

B. Timing of Installation. A new or altered structure shall not be occupied, and a new land use not requiring a structure shall not be established, until all off-street parking and loading facilities required by this chapter are in place and approved by the city.

C. Parking and Loading Spaces to Be Permanent. Each parking and loading space shall be permanently available, marked, and maintained for parking or loading purposes for the use it is intended to serve, notwithstanding replacement of religious-use parking as provided for in Government Code Section 65913.6. The approval of a limited term permit (Section 17.62.030), may allow the temporary use of a parking or loading space for other purposes.

D. Parking and Loading to Be Unrestricted. An owner, lessee, tenant, or other person, having control of the operation of a premises for which parking or loading spaces are required by this chapter, shall not prevent, prohibit, or restrict authorized persons from using the spaces without the 333 of 545 prior approval of the director.

E. Off-street residential parking spaces shall be unbundled in the SW and TOC Zoning Districts.

Parking spaces assigned to a residential development shall be available to be rented or sold separately from the rental or purchase of dwelling units for the life of the dwelling units. Potential renters or buyers shall have the option of renting or buying a dwelling unit at a price lower than would be the case if there were a single price for both the dwelling unit and the parking space(s).

1. Off-street parking spaces shall only be offered to residents of the dwelling units served by the off-street parking except that in developments in the SW and TOC zoning districts, any spaces (required or not required) not purchased or rented by residents may be rented to non-residents to be used for automobile parking. Such spaces must be vacated upon thirty (30) days' notice if requested by residents to be made available to them.

2. For developments offering unbundled parking, notice describing the unbundling allowances and regulations shall be included in all purchase and/or rental agreements and permanently posted in a common area of the building or development (such as a parking lot, lobby or mailroom) that is clearly visible to residents.

3. A parking management plan is required to be submitted with each multi-family and/or mixed-use project.

4. Unbundled vehicular parking spaces shall not be used for long-term vehicle storage.

F. Vehicles for Sale. See Section 17.42.045 (Auto and vehicle sales). (Ord. 918 § 14, 2023; Ord. 766 § 2 Exh. A (part), 2004).

SECTION 11: Amendment to the Cotati Municipal Code. Section 17.36.050 Number of Parking Spaces Required Table 3-7 is amended to include parking requirements for the Transit Oriented Communities (TOC) Overlay as follows:

Table 3-7
Parking Requirements by Land Use
Land Use Type: Vehicle Spaces Required
Transit Oriented Communities (TOC) Overlay
Mixed Use/Multifamily
Residential No minimum. 1.5 spaces per residential unit maximum All Commercial/Office No minimum. 1 space for each 250 sq. ft. of commercial use areas maximum
Manufacturing Processing and Warehousing
All manufacturing, industrial, and
processing uses, except as
follows:
1 space for each 250 sq. ft. of office area;
1 space for each 1,000 sq. ft. of ground and/or building area devoted to other than office;
1 space for each company vehicle.

Industrial research and 1 space for each 400 sq. ft. of floor area, plus 1 space for each company 334 of 545
Table 3-7
Parking Requirements by Land Use
Land Use Type: Vehicle Spaces Required
development, laboratories vehicle.

Recycling facilities
Medium collection facilities Determined by minor use permit.

Small collection facilities Determined by minor use permit.

Recreation, Education, Public Assembly
Bar/tavern, night club (not within
a retail complex)
1 space for each 50 sq. ft. of seating area and waiting/lounge area exclusive of dance floor, and 1 space for each 30 sq. ft. of dance floor.

Commercial recreation facilities –
Indoor
Arcade 1 space for each 200 sq. ft. of floor area.

Bowling alley 5 spaces for each lane.

Pool and billiard room 2 spaces for each table.

Skating rink 1 space for each 100 sq. ft. of rink area.

Commercial recreation
facilities – Outdoor
Determined by use permit.

Equestrian facilities –
Commercial stables
1 space for each 5 horses boarded.

Golf
Golf courses and country clubs 4 spaces for each hole, plus as required by this table for accessory uses (e.g., pro shop, bar, restaurant, etc.)
Golf driving ranges 1 space for each tee.

Miniature golf courses 3 spaces for each hole, plus as required by this table for accessory uses (e.g., game room, food service, etc.)
Health/fitness facilities 1 space for each 200 sq. ft. of floor area.

Library, museum 1 space for each 300 sq. ft. of floor area.

Meeting facility, public or private 1 space for each 4 seats, or 1 space for each 40 sq. ft. of floor area if no seats are provided, whichever is greater, plus 1 space for each classroom or office.

Schools (public and private)
Kindergarten and nursery
schools
1 space for each 3 employees (including administrators and teachers) and 1 space for each 10 children.

Elementary/middle schools 1 space for each employee plus 1 space for each 8 students.

Secondary (high) schools 1 space for each employee plus 1 space for each 4 students. 335 of 545
Table 3-7
Parking Requirements by Land Use
Land Use Type: Vehicle Spaces Required
Colleges and universities
(including trade and business
schools)
1 space for each 1.5 students.

Studios (art, dance, martial arts,
music, etc.)
1 space for each 200 sq. ft. of floor area.

Swimming pools (public, private
and commercial)
1 space for each 100 sq. ft. of pool deck area.

Tennis/racquet/handball or other
courts
2 spaces for each court, plus 1 space for each 300 sq. ft. of floor area for accessory uses.

Theaters, auditoriums 1 space for each 3 seats.

Residential
Accessory dwelling unit or junior
accessory dwelling unit
See Section 17.42.170 (Accessory dwelling units/junior accessory dwelling units).

Live/work units 1 space for each unit.

Multifamily housing
Studio units and one-bedroom
units
1 space for each unit.

Two- and three-bedroom units 1.5 spaces for each unit.

Four-bedroom units and above 2 spaces for each unit, or less as required by the review authority.

Guest parking 1 space for each 4 units.

Organizational house 1 space for each bedroom.

Residential care homes
Six or fewer clients 2 spaces.

Seven or more clients 1 space for each 2 beds, plus 1 space for each 4 beds for guests and employees.

Rooming or boarding houses 1 space for each bedroom.

Senior housing projects 1 space for each two units, plus 1 guest parking space for each 10 units.

Reduced parking may be provided in compliance with
Section 17.36.080(C) (Reduced Parking for Restricted Senior Housing Projects).

Single-family dwellings including
mobilehome units and
manufactured housing
2 spaces.

Retail Trade
All “Retail Trade” uses listed
under “Retail Trade” in Tables 2-
2 or 2-3, except the following:
1 space for each 200 sq. ft. of floor area, and 1 space for each 200 sq. ft. of outdoor sales area.
336 of 545
Table 3-7
Parking Requirements by Land Use
Land Use Type: Vehicle Spaces Required
Auto and vehicle sales and
rental
1 space for each 400 sq. ft. of floor area for showroom and office, 1 space per 600 sq. ft. of area used for repairs and services, and 1 space for each 2,000 sq. ft. of outdoor display area.

All customer parking shall be clearly marked and not to be used for parking of unregistered vehicles. No damaged, inoperative, wrecked, or abandoned vehicles shall be stored in any exterior area for more than five days.

Building and landscape
materials, and furniture,
furnishing, and appliance stores
1 space for each 500 sq. ft. of indoor display area for first 10,000 sq. ft., 1 space for each 1,000 sq. ft. of indoor display area over 10,000, and 1 space for each 1,000 sq. ft. of outdoor display area.

Convenience stores 1 space for each 250 sq. ft. of floor area.

Garden stand 2 spaces minimum, either on-street adjacent to the property or off street, out of the public right-of-way.

Grocery stores, delicatessens,
supermarkets (not within a
retail complex)
1 space for each 150 sq. ft. of floor area used for display and sales, and 1 space for each 800 sq. ft. of floor area used exclusively for warehousing.

Plant nursery, garden supply
stores
1 space for each 2,000 sq. ft. of site area, and 1 loading space, 15 ft. x 30 ft., for each acre.

Produce stands or other outdoor
vendors
3 spaces minimum or 1 space for each 150 sq. ft., whichever results in a greater number of spaces. The spaces shall be located at least 20 feet off the public right-of-way or 20 feet from the front property line with no vehicle maneuvering allowed in the public right-of-way. The use permit may require additional parking, depending on the nature of the sales proposed.

Restaurants (not within a retail
complex)
1 space for each 50 sq. ft. of dining, indoor/outdoor seating, waiting, and lounge areas.

Retail complexes 1 space for each 250 sq. ft. of floor area for complexes of less than 30,000 sq. ft., and 1 space for each 300 sq. ft. for complexes of 30,000 sq. ft. or more.

Services
Banks, financial services (not
within a retail complex)
1 space for each 180 sq. ft. of floor area, plus 4 tandem stacking spaces for each outdoor teller or teller station.

Child day care See Section 17.42.060.

Equipment rental 1 space for each 300 sq. ft. of floor area, plus 1 space for each 1,000 sq. ft. of outdoor storage and rental area.

Laundry – Dry cleaning pick-up
facilities and laundromats
1 space for each 250 sq. ft. of floor area.

Laundry – Laundries and dry 1 space for each 1,000 sq. ft. of floor area. 337 of 545 Table 3-7
Parking Requirements by Land Use
Land Use Type: Vehicle Spaces Required
cleaning plants
Lodging
Bed and breakfast inns 1 space for each guest room, plus 2 covered spaces for the resident family.

Hotels or motels 1 space for each guest room or rental unit, or 1 space for each two beds, whichever is greater, plus required spaces for accessory uses.

Medical services
Clinics and laboratories 1 space for each 225 sq. ft. of floor area, or 4 spaces for each doctor, whichever is greater.

Doctor offices 1 space for each 225 sq. ft. of floor area, or 4 spaces for each doctor, whichever is greater.

Extended care, urgent care 1 space for each 3 patient beds the facility is licensed to accommodate.

Hospitals 1 space for each 2 patient beds the facility is licensed to accommodate.

Mortuaries, funeral homes 1 space for each 4 seats in main sanctuary.

Offices
Business and service 1 space for each 250 sq. ft. of floor area.

Processing 1 space for each 150 sq. ft. of floor area.

Professional 1 space for each 250 sq. ft. of floor area.

Personal services – All except the
following:
1 space for each 250 sq. ft. of floor area.

Pet grooming 1 space for each 400 sq. ft. of floor area.

Public utility structure or
installation, bus depot, or transit
station
1 space for each 3 employees, plus additional spaces required by the commission.

Service (gas) stations 1 space for each 250 sq. ft. of floor area, plus 3 spaces for each service bay.

Storage areas 1 space for each 1,500 sq. ft. of floor area Vehicle services – All except the
following:
(All customer parking shall be clearly marked and not to be used for parking of unregistered vehicles. No damaged, inoperative, wrecked, or abandoned vehicles shall be stored in any exterior area for more than five days.)
4 spaces for each service bay, plus spaces for any office as required by this section for offices.

Car wash – Self service 1 drying space for each stall.

Car wash – Full service 10 spaces, plus 6 spaces for each wash lane for queuing and drying area.

Veterinary clinics, animal 1 space for each 250 sq. ft. of floor area. 338 of 545
Table 3-7
Parking Requirements by Land Use
Land Use Type: Vehicle Spaces Required
hospitals, kennels
Kennels separate from other
facilities
1 space for each employee, plus 2 spaces.

See subsection G of this section for all projects located more than one-half mile of public transit, or projects subject to specific thirty-day findings pursuant to Government Code Section 65853.2. 339 of 545
SECTION 12: Amendment to the Cotati Municipal Code. Section 17.36.070 is amended as follows:

17.36.070 Bicycle and motorcycle parking.

A. Bicycle Parking. Each multifamily residential development, mixed use and nonresidential land use shall provide bicycle parking in compliance with this section.

1. Number of Bicycle Spaces Required.
a. Multifamily residential uses shall provide bicycle parking spaces equal to a minimum of one bicycle space for every four dwelling units or fraction thereof, with a minimum of two bicycle spaces. For multifamily developments of fourteen or more dwelling units, a minimum of seventy-five percent of bicycle parking spaces or fraction thereof shall be long-term parking and the remaining spaces may be shortterm parking. The number of long-term bicycle parking spaces may be reduced by the review authority if dwelling units are provided with a private garage or private, ground-floor, enclosed storage space that will accommodate a bicycle. b. Multifamily and mixed-use projects within the TOC and SWSP Zoning Districts/overlay area shall provide bicycle parking spaces equal to a minimum of one secured bicycle parking space per dwelling unit and one secured bicycle parking space per 5000 square feet of office space.
c. Nonresidential uses shall provide bicycle parking spaces equal to a minimum of one bicycle space for every ten automobile spaces or fraction thereof, with a minimum of two bicycle spaces. A minimum of twenty-five percent of bicycle parking spaces or fraction thereof shall be long-term parking and the remaining spaces may be shortterm parking.

SECTION 13: Amendment to the Cotati Municipal Code. Sections 17.36.080(A-F) are amended as follows:

17.36.080 Reduction of parking requirements.

A. Shared Parking. Where two or more adjacent uses have distinct and differing peak parking usage periods (e.g., a theater and a bank), a reduction in the required number of parking spaces shall be allowed. Approval shall also require a parking management plan and recorded covenant running with the land, recorded by the owner of the parking facility, guaranteeing that the required parking will be maintained exclusively for the use or activity served for the duration of the use or activity, in compliance with Section 17.36.120 (Designation of off-site parking and loading spaces).

B. Reduction of Parking. The review authority may reduce the number of parking spaces required by Section 17.36.050 (Number of parking spaces required), based on quantitative information provided by the applicant that documents the need for fewer spaces (e.g., sales receipts, documentation of customer frequency, information on parking standards required for the proposed land use by other cities, etc.).
340 of 545
C. Reduced Parking for Restricted Senior Housing Projects. The review authority may reduce the number of parking spaces required by Section 17.36.050 (Number of parking spaces required) for senior housing projects, for persons aged fifty-five and over, based on quantitative information provided by the applicant that documents the need for fewer spaces for these types of residential development projects.

D. Shared On-Site Parking for Mixed Use Projects. The use of shared parking provisions shall be incorporated into mixed use projects in compliance with Section 17.42.100 (Mixed use projects).

E. Street or Public Parking Lot Parking for Residential Uses. A portion of the required parking for a residential use may be located on a public street or in a public parking lot with use permit approval.

F. Alternative Parking Arrangements for the DSP, TOC and CD Zoning District(s). Alternative parking may be approved by the review authority for projects located in the DSP, TOC and CD zoning district(s) where the applicant executes an agreement with the city to:

1. Pay a parking in-lieu fee, based on an in-lieu fee established or approved by the council;

2. Waive the right to protest the formation of a parking assessment district, if a parking district is formed by the council; or

3. Provide some other fair share contribution acceptable to the review authority, where authorized by the council.

The agreement shall be recorded before the issuance of a building permit for the project.

SECTION 14: Amendment to the Cotati Municipal Code. Sections 17.39.030 is amended as follows:

G. Accessory Elements. The intent of accessory elements standards is to ensure that certain accessory uses are provided and appropriately incorporated into the project design.

1. Perimeter fencing utilized along public streets shall be constructed of decorative iron, pre-painted welded steel, stone, or wood pickets or a combination of such materials. Chainlink fencing is prohibited.

2. The height of solid fencing between private yards and common open spaces shall be limited to forty-two inches in height.

3. Screen rooftop equipment (solar panels are exempt) from visibility. The point of view for determining visibility shall be five feet above grade at a distance of two hundred feet.

4. Screen all exterior trash, recycling, storage utility boxes, wood service poles, electric and gas meters, fire sprinkler valves and backflow preventers and transformers, or other ground-mounted infrastructure. 341 of 545

5. Refuse Containers.
a. Provide dumpsters for refuse collection within a roofed enclosure with walls a minimum of six feet tall. Allow adequate size to accommodate the needed landfill, compost, and recycling containers. All enclosures and gates should be designed to withstand heavy use. Provide wheel stops or curbs to prevent dumpsters from banging into walls of enclosure.
b. Coordinate with the refuse pickup provider to determine the size and number of dumpsters required, and ensure that dumpsters shall accommodate all waste streams (landfill, recycling and compost, etc.).
c. Provide an opening so that pedestrians can access the dumpsters without opening the large gates.
d. Provide lighting at refuse enclosures for nighttime security and use. e. Locate dumpster enclosures so that no dwelling is closer than twenty feet (including those on abutting properties), or more than one hundred feet from a residential unit.

No minimum distance from dwellings is required if dumpsters are located within a fully enclosed room.

6. Storage. A minimum of one hundred cubic feet of lockable storage area shall be provided for each dwelling outside of the unit, with no dimension less than thirty inches. This section does not apply to vertical mixed use.

7. Laundry Facilities. Each unit shall be provided a plumbed individual laundry area within the unit or its garage, of a size large enough to accommodate a clothes washer and dryer. If located in the garage for an individual unit, the laundry area shall not encroach into the required parking area. Alternatively, project applicant may provide common laundry facilities.

8. Curb Demand Management. The public street frontage of all new multifamily and mixed-use development projects shall incorporate curb management design characteristics to facilitate ride-share pick-ups, delivery vehicle parking, micromobility access and parking for all vehicle types.

9. Mobility Hub Features. Mobility hubs are centralized locations where people can easily access and transfer between multiple modes of transportation. Each multi-family development shall incorporate a minimum of four mobility hub features from the menu below.
a) Micromobility stations and drop zones
b) Dedicated Car Share Service and Parking
c) Loading Zones for ride-hail, shuttles, micro/on-demand transit and urban freight d) Common carrier package pickup and/or similar efficient delivery services 342 of 545
e) Wayfinding Signage to off-site transit and mobility opportunities f) Electric Vehicle Charging Infrastructure
g) Long- and Short-Term Bicycle Parking
H. Mixed Use Developments. In addition to the objective standards identified above, projects consisting of both commercial and residential uses shall also be consistent with each of the following standards below:

1. Site planning and building design shall provide for pedestrian access from the public street into the nonresidential and residential portions of the project, through courtyards, plazas, and walkways.

2. Horizontal mixed use projects shall include a pedestrian network connecting the residential components of the project with the nonresidential components through the provision of courtyards, plazas, and walkways.

3. All building design and site design requirements and criteria identified herein shall be incorporated into mixed use projects.

I. Solar on Site. Projects shall include on-site solar photovoltaic panels/equipment to help achieve energy efficiency standards contained within California Code of Regulations Title 24.

J. Additional Objective Standards Within Land Use Code and Specific Plans. Projects subject to this chapter must comply with all other applicable objective standards within this land use code and adopted policies of specific plans. (Ord. 927 § 16, 2024).

SECTION 15: Amendment to the Cotati Municipal Code. Sections 17.60.040 Table 6-1 is amended as follows:

Table 6-1
Planning Perm it Review Authority
Type of Decision
Applicable
Land Use
Code Section
Role of Review Authority(1)
Design Review
Adm inistration Director
Planning
Com m ission City Council
Adm inistrative and Legislative
Interpretation 17.12 Decision(2) Appeal Appeal
Developm ent Agreem ent 17.66 Recom m end Recom m end Decision General Plan Am end m ent Recom m end Recom m end Decision Specific Plan Recom m end Recom m end Decision
Zoning Map Am end m ent 17.62.070 Recom m end Recom m end Decision Land Use Code Am endm e nt 17.62.070 Recom m end Recom m end Decision Planning Perm it/Develop m ent Approval 343 of 545
Table 6-1
Planning Perm it Review Authority
Type of Decision
Applicable
Land Use
Code Section
Role of Review Authority(1)
Design Review
Adm inistration Director
Planning
Com m ission City Council
Preapplication Con ference 17.60.040(A) Feedback
Zoning Clearance 17.62.020 Decision Appeal Appeal
Minor Use Perm it (MUP) 17.62.050 Decision(2) Appeal Appeal Use Perm it (UP) 17.62.050 Recom m end Decision Appeal
Minor Variance 17.62.060 Decision(2) Appeal Appeal
Variance 17.62.060 Recom m end Decision Appeal
Design Review – Single -fam ily
dwelling or two-unit m ultifam ily
plex (duplex) structure

17.62.040 Decision Appeal Appeal
Design Review – All other projects 17.62.040 Recom m end Recom m end Decision Appeal Lim ited Term Perm it 17.62.030 Decision Appeal Appeal
Sign Perm it or Master Sign Plan 17.38.030 Recom m end Decision Appeal Appeal Master Sign Plan 17.38.030 Recom m end Decision Appeal Appeal Tree Perm it – Developed parcel 17.54 Decision Appeal Appeal Tree Perm it – Undeveloped parcel 17.54 Recom m end Recom m end Decision Appeal Tree Perm it – Native oak 17.54 Recom m end Recom m end Recom m end Decision Notes:
(1) "Recom m end " m eans that the review authority m akes a recom m endation to a higher decisionm aking body; "Decision" m eans that the review authority m akes the final decision on the m atter; "Appeal" m eans that the review authority m ay consider and decide upon appeals to the decision of an earlier decisionm aking body, in com p liance with Chapter 17.84 (Appeals). "Feedback" m eans that the director shall issue a letter addressing those issues outlined in subsection A of this section.
(2) The director m ay defer action and refer the request to the com m ission , so that the com m ission m ay instead m ake the decision.
(Ord. 927 § 21, 2024; Ord. 915 § 14, 2022; Ord. 895 § 2(A) Exh; 2 (part), 2020; Ord. 885 § 2 Exh; A (part), 2019; Ord. 766 § 2 Exh; A (part), 2004)
SECTION 16: Amendment to the Cotati Municipal Code. Sections 17.62 Permit Review and Decisions is amended to add 17.62.070 Amendments as follows:

Chapter 17.62 Permit Review and Decisions
Section 17.62.070 AMENDMENTS
A. Purpose. This section provides procedures for the amendment of the General Plan, this Zoning Code, and the Official Zoning Map whenever required by public necessity and general welfare.

B. Applicability, initiation, processing, notice, and hearing.

1. Applicability.
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a. General Plan. A General Plan amendment may include revisions to text or diagrams. b. Zoning Code. A Zoning Code amendment may modify any procedure, provision, regulation, requirement, or standard applicable to land use or development within the City.
c. Zoning Map. A Zoning Map amendment has the effect of rezoning property and/or moving a boundary between two zoning districts.
1a. A Zoning Code Map Amendment for housing projects is not required for consistency with the General Plan provided the proposed housing project is consistent with objective General Plan standards and criteria of the zoning consistent with the General Plan land use, as shown in Table 2-1, Zoning Districts.

2. Initiation of amendment. An amendment to the General Plan, this Zoning Code, or the Zoning Map shall be initiated by:
a. A resolution of the Council or Commission;
b. The filing of an amendment application with the Department by the owner or authorized agent of property for which the amendment is sought. If the property is under more than one ownership, all of the owners or their authorized agents shall join in filing the application; or
c. A request from the Director, or City department other than Community Development, to the Commission, followed by the adoption of a motion by the Commission setting the matter for study, hearing, and recommendation to the Council.

2. Application requirements. An application for an amendment filed by a property owner or authorized agent in compliance with Subsection B.2.b, shall be filed in compliance with Chapter

17.60 (Permit Application Filing and Processing). The application shall be accompanied by the information identified in the Department handout for amendment applications. It is the responsibility of the applicant to provide evidence in support of the findings required below.

3. Study of additional area. The Director, upon review of an application, or upon a motion by the Commission or Council for an amendment, may elect to include a larger area or additional land in the study of the General Plan or Zoning Map amendment request.

C. Public hearings required.

1. After the initial processing of a proposed amendment in compliance with Chapter 17.60 (Permit Application Filing and Processing) the Commission and Council shall each conduct at least one public hearing regarding the amendment.

2. Notice of the hearings shall be given in compliance with Chapter 17.88 (Public Hearings).

3. Failure of any person to receive notice of the hearings shall not invalidate a decision by the 345 of 545 Commission or Council.

D. Commission action on amendments.

1. Action on amendments. A recommendation to the Council for the approval of a proposed amendment shall be by resolution, and carried by the affirmative vote of a majority of Commission members; otherwise the proposal shall be deemed denied.

2. Modification of amendments.
a. The Commission may modify a proposed amendment by changing the wording of a proposed text amendment or, in the case of a proposed General Plan or Zoning Map amendment, by reducing the area involved, or by recommending a more restrictive land use or zoning classification, as applicable. The term "more restrictive" means a lower density within an applicable category of residential, commercial, or industrial zoning classification. In no case shall a Commission modification extend into another land use or zoning category without additional public notice of the Commission as an reconsideration. However, in keeping with the No-NetLoss elements of state law, an existing residentially zoned parcel may not be rezoned to a less dense residential district without a requisite up-zoning of a separate parcel to compensate for the loss in allowable residential units on the subject parcel. b. The reasons for a modification to a proposed General Plan or Zoning Map amendment, along with a statement as to the initial proposal, shall be included in the recommendation to the Council.

3. Denial of amendment.
a. A Commission denial of a proposed amendment shall terminate the proceedings in the matter, and the action of the Commission shall be final, unless an appeal is filed with the City Clerk within 10 days of the date of Commission action, in compliance with Chapter

17.84 (Appeals).
b. However, in the case of an amendment proposed or initiated by the Council, the Commission shall forward its written recommendation for denial to the Council for its consideration within 60 days after the date of the opening of the public hearing. c. Recommendation to the Council. A Commission recommendation to the Council for the approval, modified approval, or denial of an amendment in compliance with this Chapter shall be accompanied by a complete report of the Commission's action, including a summary of the hearing, its findings in support of the recommendation (based on the findings in Section 17.62.070 F. (Findings), a copy of the Commission resolution, and any other pertinent material or information that will assist the Council in making its final determination.

E. Council action on amendments.

1. Action to approve or deny. Upon receipt of the Commission's recommendation, the Council shall approve, approve in modified form, or deny the proposed amendment, based on the findings identified below.
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a. General Plan. If the Council votes to approve an amendment to the General Plan, the Council shall do so by adopting a resolution.
b. Zoning Code or Zoning Map. If the Council votes to approve an amendment to this Zoning Code or the Zoning Map, the Council shall do so by adopting an ordinance.

2. Substantive changes by Council. If the Council proposes to adopt a substantive change to the amendment not previously considered by the Commission during its hearings, the proposed substantive change shall be referred back to the Commission for its recommendation.

3. Non-substantive changes by the Council.
a. The Council may modify any proposed amendment by making non-substantive changes in the wording of the proposed General Plan or Zoning Map amendment, by reducing the area involved, considering the option of a mixed use classification, or by recommending a more restrictive land use or zoning classification, as applicable. The term "more restrictive" means a lower density within an applicable category of residential, commercial, or industrial zoning classification, and in no case shall a modification transcend into another category without re-noticing the Council's reconsideration. b. Before taking the action, the Council may (at the Council discretion) refer the proposed non-substantive change to the Commission for a written recommendation. c. In this case, the Commission need not hold a public hearing and shall report back to the Council within 60 days after the date of Council referral, or the Council shall be deemed to have approved the proposed non-substantive changes.

F. Findings.

An amendment to the General Plan, this Zoning Code, or the Zoning Map may be approved only if all of the following findings are made, as applicable to the type of amendment.

1. Findings for General Plan amendments.
a. The proposed amendment ensures and maintains internal consistency with the goals and policies of all elements of the General Plan;
b. The proposed amendment would not be detrimental to the public interest, health, safety, convenience, or welfare of the City;
c. The site is physically suitable (including absence of physical constraints, access, compatibility with adjoining land uses, and provision of utilities) for the requested and/or anticipated land use developments; and
d. The proposed amendment is consistent with no-net-loss provisions and will not reduce the residential density of the parcel without a concurrent and off-setting increase in density being adopted for an alternate location.
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e. The proposed project has been reviewed in compliance with the California Environmental Quality Act (CEQA).

2. Findings for Zoning Code/Map amendments.
a. The proposed amendment is consistent with the goals and policies of all elements of the General Plan, and any applicable specific plan;
b. The proposed amendment would not be detrimental to the public interest, health, safety, convenience, or welfare of the City; and
c. The proposed project has been reviewed in compliance with the California Environmental Quality Act (CEQA).
d. Additional finding for Zoning Code amendments: The proposed amendment is internally consistent with other applicable provisions of this Zoning Code. e. Additional finding for Zoning Map amendments: The site is physically suitable (including absence of physical constraints, access, compatibility with adjoining land uses, and provision of utilities) for the requested zoning designations and anticipated land uses/developments.
f. Additional finding for Zoning Map amendments: The proposed amendment is consistent with no-net-loss provisions and will not reduce the residential density of the parcel without a concurrent and off-setting increase in density being adopted for an alternate location.

G. Prezoning.

1. Applicability. An unincorporated property within the City's urban boundary may be prezoned to the zoning district that would apply to the property in the event of subsequent annexation to the City.
a. A prezoning shall be accomplished by ordinance, and shall be initiated, processed, and approved or denied in the same manner as provided for Zoning Map amendments for property located within the City.
b. Upon the effective date of annexation of property which has been prezoned in compliance with this Section, the zoning designation shall become the official zoning designation for the property and shall be so designated on the Official Zoning Map. c. A prezoning designation may be withdrawn or changed in the same manner and under the same procedures required for establishing the prezoning designation.

2. Commission recommendation. The Commission shall make a written recommendation to the Council whether to approve, approve in modified form, or deny the proposed prezoning, based on the findings contained above.

3. Council's action on prezoning.
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a. Upon receipt of the Commission's recommendation, the Council shall approve, approve in modified form, or deny the proposed prezoning based on the findings contained above. b. If the Council proposes to adopt a substantial modification to the prezoning not previously considered by the Commission during its hearings, the proposed modification shall be first referred back to the Commission for its recommendation.

SECTION 17: Amendment to the Cotati Municipal Code. Sections 17.74.030 is amended as follows:

17.74.030 Condominiums and condominium conversion.

Condominiums and condominium conversions shall comply with the following requirements, and the limitations and standards in Section 17.42.065 (Condominium, stock cooperative, and other common interest projects) and the applicable sections of the Subdivision Map Act.

A. Condominiums. When a residential structure is proposed at the time of construction as a condominium, community apartment project, or stock cooperative, a tentative map for the project shall be filed in the same form, have the same contents and accompanying data and reports and shall be processed, approved or denied in the same manner in compliance with Chapter 17.71 (Tentative Map Filing and Processing). Chapter 17.72 (Parcel Maps and Final Maps) of this title, determines whether a parcel or final map shall also be filed.

B. Condominium Conversions. A condominium conversion is the conversion of real property to a common interest development as defined by Section 1351 of the California Civil Code.

1. Approvals Required. A conversion shall require the approval of a tentative map, and parcel or final map, except where a parcel map, or tentative and final map are waived in compliance with Map Act Section 66428(b) or 66428.1, for the conversion of a mobilehome park. If a parcel map is waived, a tentative map shall still be required.

2. Approval of a tentative map allowing the conversion of rental units to ownership condominium units shall require the replacement of the rental units at a one-to-one ratio, where permitted by state law, as a condition of map approval. This one-to-one unit replacement ratio is not required for condominium conversions where:
a) A minimum of 90% of the condominium units are purchased by current tenants; or b) 100% of the converted housing units are proposed to be deed restricted as affordable housing to households earning 120% of the Area Median Income (AMI) or less for a period of 55-years.

3. Application Filing and Processing. A tentative map for a condominium conversion shall be filed in the same form, have the same contents and accompanying data and reports and shall be processed, approved or disapproved in the same manner as set forth in Chapter 17.71 (Tentative Map Filing and Processing) of this title, except as otherwise 349 of 545
provided by the following provisions of this section.

4. Application Contents. Condominium conversion applications shall include the same information and materials as tentative map applications, except for conversions of residential projects, which shall also include the following information and materials:
a. Tentative Map. The tentative map for a condominium, community apartment project, or the conversion of five or more existing dwelling units to a stock cooperative need not show the buildings or the manner in which the airspace above the property shown on the map are to be divided. However, the applicant shall provide an illustration of how subdivision will occur to enable verification of the accuracy of the legal descriptions on deeds for the transfer of ownership of the units and shall include a narrative description of the size and bedroom counts of the units proposed to be converted;
b. Verification of Stock Cooperative Vote. If the development being converted to a condominium is a stock cooperative, the application shall also include verification of the vote required by Map Act Section 66452.10;
c. Tenant Relocation Assistance Plan. A detailed plan that provides a first right of refusal to current tenants to purchase a unit at the same price offered to the general public; describes the tenant protections, benefits, and required relocation payments and moving assistance information to be given to each tenant; and includes the steps the applicant will take to ensure the successful relocation of each temporarily and/or permanently displaced tenant. The plan shall include additional measures, including assistance in locating comparable housing, assistance in locating a moving company, and payment to cover estimated moving costs, to assist special needs tenants, including senior citizens over the age of sixty-two, households with a handicapped person, and lower income households living with one or more minor children. Limited equity residential cooperatives which provide long-term affordability for the units proposed for conversion are exempt from this requirement. d. Housing Stock Assessment. An analysis of the potential impact on the city’s housing supply and costs. The analysis shall provide adequate information for the city to determine whether the proposed condominium conversion would have a negative effect on the city’s multifamily rental housing supply and rental rates and shall identify, at a minimum:
i. Vacancy rates for multifamily housing by unit size,
ii. Vacancy rates for existing condominiums and townhomes in the city by unit size,
iii. Rental rates of multifamily units, by unit size, and the rental rates of the project proposed for conversion,
iv. Length of time existing for-sale condominiums in the city have been on the market, and
v. The number of multifamily apartment units, by unit size, that are in the city’s 350 of 545
housing stock and the percentage of the city’s apartment stock, by unit size, that would be reduced by the proposed condominium conversion.

4. Staff Report. The staff report on the tentative map for the condominium conversion (Section 17.74.020) shall be provided to the subdivider and each tenant of the subject property at least three days before any hearing or action on the tentative map by the commission or council.

5. Public Notice. The following notice shall be provided in addition to that required by Chapter 17.88 (Public Hearings) of this title:
a. Tenant Notice. The subdivider shall give notice to all existing or prospective tenants as set forth in Map Act Sections 66452.8 and 66452.9, and shall provide the department satisfactory proof that the notice was given; and b. Public Hearing Notice. Notice of the public hearing(s) on the tentative map shall be provided to all tenants of the subject property, as required by Map Act Section 66451.3.

6. Approval of Conversion, Required Findings.
a. Time limit, Stock Cooperatives. The approval or disapproval of the conversion of an existing building to a stock cooperative shall occur within one hundred twenty days of the application being found complete in compliance with Section 17.71.030 (Tentative map filing, initial processing) of this title. The one hundred twenty day time limit may be extended by mutual consent of the subdivider and the city, and/or as allowed under state law.
b. Conversion Findings, Residential Projects. Approval of a tentative or final map for a subdivision to be created from the conversion of residential real property into a condominium project, community apartment project or stock cooperative shall not be granted unless the findings set forth in Map Act Section 66427.1 are first made.

7. Completion of Conversion. The filing, approval and recordation of a parcel map or final map in compliance with Chapter 17.72 (Parcel Maps and Final Maps) shall be required to complete the subdivision process, except where a parcel map, or tentative and final map are waived for the conversion of a mobilehome park in compliance with Map Act Section 66428(b). (Ord. 854 § 2 (part), 2015; Ord. 766 § 2 Exh. A (part), 2004).

SECTION 18: Amendment to the Cotati Municipal Code. Sections 17.60.040 Application preparation and filing, Table 6-1 is amended as follows:

17.60.040 Application preparation and filing.
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Table 6-1
Planning Perm it Review Authority
Type of Decision
Applicable
Land Use
Code Section
Role of Review Authority(1)
Design Review
Adm inistration Director
Planning
Com m ission City Council
Adm inistrative and Legislative
Interpretation 17.12 Decision(2) Appeal Appeal
Developm ent Agreem ent 17.66 Recom m end Recom m end Decision General Plan Am end m ent Recom m end Recom m end Decision Specific Plan Recom m end Recom m end Decision
Zoning Map Am end m ent 17.62.070 Recom m end Recom m end Decision Land Use Code Am endm e nt 17.62.070 Recom m end Recom m end Decision Planning Perm it/Develop m ent Approval
Preapplication Con ference 17.60.040(A) Feedback
Zoning Clearance 17.62.020 Decision Appeal Appeal
Minor Use Perm it (MUP) 17.62.050 Decision(2) Appeal Appeal Use Perm it (UP) 17.62.050 Recom m end Decision Appeal
Minor Variance 17.62.060 Decision(2) Appeal Appeal
Variance 17.62.060 Recom m end Decision Appeal
Design Review – Single -fam ily
dwelling or two-unit m ultifam ily
plex (duplex) structure

17.62.040 Decision Appeal Appeal
Design Review – All other projects 17.62.040 Recom m end Recom m end Decision Appeal Lim ited Term Perm it 17.62.030 Decision Appeal Appeal
Sign Perm it or Master Sign Plan 17.38.030 Recom m end Decision Appeal Appeal Master Sign Plan 17.38.030 Recom m end Decision Appeal Appeal Tree Perm it – Developed parcel 17.54 Decision Appeal Appeal Tree Perm it – Undeveloped parcel 17.54 Recom m end Recom m end Decision Appeal Tree Perm it – Native oak 17.54 Recom m end Recom m end Recom m end Decision Notes:
(1) "Recom m end " m eans that the review authority m akes a recom m endation to a higher decisionm aking body; "Decision" m eans that the review authority m akes the final decision on the m atter; "Appeal" m eans that the review authority m ay consider and decide upon appeals to the decision of an earlier decisionm aking body, in com p liance with Chapter 17.84 (Appeals). "Feedback" m eans that the director shall issue a letter addressing those issues outlined in subsection A of this section.
(2) The director m ay defer action and refer the request to the com m ission , so that the com m ission m ay instead m ake the decision.
(Ord. 927 § 21, 2024; Ord. 915 § 14, 2022; Ord. 895 § 2(A) Exh; 2 (part), 2020; Ord. 885 § 2 Exh; A (part), 2019; Ord. 766 § 2 Exh; A (part), 2004)
SECTION 19: Amendment to the Cotati Municipal Code. Chapter 17.60.070 is hereby amended, as follows:
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17.60.070 Initial Application review.

A. Review for Completeness. The director shall review each discretionary permit application or preliminary application (as defined by State law) for completeness and accuracy before it is accepted as being complete and officially filed. The director's determination of completeness shall be based on the city's list of required application contents (see Section 17.60.040(C) of this chapter), and any additional instructions provided to the applicant in any preapplication conference, and /or on the City website.

1. Notification of Applicant. As required by Government Code Section 65943, within thirty calendar days of a discretionary permit application or preliminary application filing, the applicant shall be informed in writing, either that the application is complete and has been accepted for processing, or that the application is incomplete and that additional information, specified in the director's letter, must be provided. a. When a discretionary permit application or preliminary application proposing a residential project is deemed complete, this project shall be considered to have “vested” the applicable development standards and required fees in place at the time the completeness determination is made.

2. Appeal of Determination. Where the director has determined that an application is incomplete, and the applicant believes that the application is complete and/or that the information requested by the director is not required, the applicant may appeal the determination in compliance with Chapter 17.84 (Appeals) of this title.

3. Time for Submittal of Additional Information. When an application is incomplete, the time used by the applicant to submit the required additional information shall not be considered part of the time within which the determination of completeness shall occur. The time available to an applicant for submittal of additional information is limited by subsection (A)(4) of this section.

4. Expiration of Application. If an applicant fails to provide the additional information specified in the director's letter within 90-days for a preliminary application or within six months after the first filing of a discretionary permit application with the department, the application shall expire and be deemed withdrawn. The director, at the complete discretion of the City may grant one six-month extension if requested in writing by the applicant prior to the date of expiration. After the expiration of an application, project approval shall require the submittal of a new, complete application, together with all required deposits and/or fees.

5. Environmental Information. After an application has been accepted as complete, the director may require the applicant to submit additional information needed for the environmental review of the project in compliance with Section 17.60.080 353 of 545 (Environmental review) of this chapter.

SECTION 20: Amendment to the Cotati Municipal Code. Chapter 17.62 is hereby amended to add Section 17.62.070 Amendments, as follows:

17.62.070 Amendments.

A. Purpose. This section provides procedures for the amendment of the General Plan, this Zoning Code, and the Official Zoning Map whenever required by public necessity and general welfare.

B. Applicability, initiation, processing, notice, and hearing.

1. Applicability.
a. General Plan. A General Plan amendment may include revisions to text or diagrams. b. Zoning Code. A Zoning Code amendment may modify any procedure, provision, regulation, requirement, or standard applicable to land use or development within the City. c. Zoning Map. A Zoning Map amendment has the effect of rezoning property and/or moving a boundary between two zoning districts.
1a. A Zoning Code Map Amendment for housing projects is not required for consistency with the General Plan provided the proposed housing project is consistent with objective General Plan standards and criteria of the zoning consistent with the General Plan land use, as shown in Table 2-1, Zoning Districts.

2. Initiation of amendment. An amendment to the General Plan, this Zoning Code, or the Zoning Map shall be initiated by:
a. A resolution of the Council or Commission;
b. The filing of an amendment application with the Department by the owner or authorized agent of property for which the amendment is sought. If the property is under more than one ownership, all of the owners or their authorized agents shall join in filing the application; or
c. A request from the Director, or City department other than Community Development, to the Commission, followed by the adoption of a motion by the Commission setting the matter for study, hearing, and recommendation to the Council.

3. Application requirements. An application for an amendment filed by a property owner or authorized agent in compliance with Subsection B.2.b, shall be filed in compliance with Chapter

17.60 (Permit Application Filing and Processing). The application shall be accompanied by the information identified in the Department handout for amendment applications. It is the responsibility of the applicant to provide evidence in support of the findings required in Section

17.62.070 F. below.

4. Study of additional area. The Director, upon review of an application, or upon a motion by the Commission or Council for an amendment, may elect to include a larger area or additional land 354 of 545
in the study of the General Plan or Zoning Map amendment request.

C. Public hearings required.

1. After the initial processing of a proposed amendment in compliance with Chapter 17.60 (Permit Application Filing and Processing) the Commission and Council shall each conduct at least one public hearing regarding the amendment.

2. Notice of the hearings shall be given in compliance with Chapter 17.88 (Public Hearings).

3. Failure of any person to receive notice of the hearings shall not invalidate a decision by the Commission or Council.

D. Commission action on amendments.

1. Action on amendments. A recommendation to the Council for the approval of a proposed amendment shall be by resolution, and carried by the affirmative vote of a majority of Commission members; otherwise the proposal shall be deemed denied.

2. Modification of amendments.
b. The Commission may modify a proposed amendment by changing the wording of a proposed text amendment or, in the case of a proposed General Plan or Zoning Map amendment, by reducing the area involved, or by recommending a more restrictive land use or zoning classification, as applicable. The term "more restrictive" means a lower density within an applicable category of residential, commercial, or industrial zoning classification. In no case shall a Commission modification extend into another land use or zoning category without additional public notice of the Commission as an reconsideration. However, in keeping with the No-Net-Loss elements of state law, an existing residentially zoned parcel may not be rezoned to a less dense residential district without a requisite up-zoning of a separate parcel to compensate for the loss in allowable residential units on the subject parcel.
b. The reasons for a modification to a proposed General Plan or Zoning Map amendment, along with a statement as to the initial proposal, shall be included in the recommendation to the Council.

3. Denial of amendment.
a. A Commission denial of a proposed amendment shall terminate the proceedings in the matter, and the action of the Commission shall be final, unless an appeal is filed with the City Clerk within 10 days of the date of Commission action, in compliance with Chapter

17.84 (Appeals).
b. However, in the case of an amendment proposed or initiated by the Council, the Commission shall forward its written recommendation for denial to the Council for its consideration within 60 days after the date of the opening of the public hearing. 355 of 545
c. Recommendation to the Council. A Commission recommendation to the Council for the approval, modified approval, or denial of an amendment in compliance with this Chapter shall be accompanied by a complete report of the Commission's action, including a summary of the hearing, its findings in support of the recommendation (based on the findings in Section 17.62.070 F. (Findings), a copy of the Commission resolution, and any other pertinent material or information that will assist the Council in making its final determination.

E. Council action on amendments.

1. Action to approve or deny. Upon receipt of the Commission's recommendation, the Council shall approve, approve in modified form, or deny the proposed amendment, based on the findings identified below.
a. General Plan. If the Council votes to approve an amendment to the General Plan, the Council shall do so by adopting a resolution.
b. Zoning Code or Zoning Map. If the Council votes to approve an amendment to this Zoning Code or the Zoning Map, the Council shall do so by adopting an ordinance.

2. Substantive changes by Council. If the Council proposes to adopt a substantive change to the amendment not previously considered by the Commission during its hearings, the proposed substantive change shall be referred back to the Commission for its recommendation.

3. Non-substantive changes by the Council.
a. The Council may modify any proposed amendment by making non-substantive changes in the wording of the proposed General Plan or Zoning Map amendment, by reducing the area involved, considering the option of a mixed use classification, or by recommending a more restrictive land use or zoning classification, as applicable. The term "more restrictive" means a lower density within an applicable category of residential, commercial, or industrial zoning classification, and in no case shall a modification transcend into another category without re-noticing the Council's reconsideration. b. Before taking the action, the Council may (at the Council discretion) refer the proposed non-substantive change to the Commission for a written recommendation. c. In this case, the Commission meeting need not be held as a public hearing and the results shall reported back to the Council within 60 days after the date of Council referral, or the Council shall be deemed to have approved the proposed non-substantive changes.

F. Findings.

An amendment to the General Plan, this Zoning Code, or the Zoning Map may be approved only if all of the following findings are made, as applicable to the type of amendment.

1. Findings for General Plan amendments.
a. The proposed amendment ensures and maintains internal consistency with the goals and policies of all elements of the General Plan;
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b. The proposed amendment would not be detrimental to the public interest, health, safety, convenience, or welfare of the City;
c. The site is physically suitable (including absence of physical constraints, access, compatibility with adjoining land uses, and provision of utilities) for the requested and/or anticipated land use developments; and
d. The proposed amendment is consistent with no-net-loss provisions and will not reduce the residential density of the parcel without a concurrent and off-setting increase in density being at alternate location.
e. The proposed project has been reviewed in compliance with the California Environmental Quality Act (CEQA).

2. Findings for Zoning Code/Map amendments.
a. The proposed amendment is consistent with the goals and policies of all elements of the General Plan, and any applicable specific plan;
b. The proposed amendment would not be detrimental to the public interest, health, safety, convenience, or welfare of the City; and
c. The proposed project has been reviewed in compliance with the California Environmental Quality Act (CEQA).
d. Additional finding for Zoning Code amendments: The proposed amendment is internally consistent with other applicable provisions of this Zoning Code. e. Additional finding for Zoning Map amendments: The site is physically suitable (including absence of physical constraints, access, compatibility with adjoining land uses, and provision of utilities) for the requested zoning designations and anticipated land uses/developments.
f. Additional finding for Zoning Map amendments: The proposed amendment is consistent with no-net-loss provisions and will not reduce the residential density of the parcel without a concurrent and off-setting increase in density at an alternate location.

G. Prezoning.

1. Applicability. An unincorporated property within the City's urban boundary may be prezoned to the zoning district that would apply to the property in the event of subsequent annexation to the City.
a. A prezoning shall be accomplished by ordinance, and shall be initiated, processed, and approved or denied in the same manner as provided for Zoning Map amendments for property located within the City.
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b. Upon the effective date of annexation of property which has been prezoned in compliance with this Section, the zoning designation shall become the official zoning designation for the property and shall be so designated on the Official Zoning Map. c. A prezoning designation may be withdrawn or changed in the same manner and under the same procedures required for establishing the prezoning designation.

2. Commission recommendation. The Commission shall make a written recommendation to the Council whether to approve, approve in modified form, or deny the proposed prezoning, based on the findings contained above.

3. Council's action on prezoning.
a. Upon receipt of the Commission's recommendation, the Council shall approve, approve in modified form, or deny the proposed prezoning based on the findings contained above. b. If the Council proposes to adopt a substantial modification to the prezoning not previously considered by the Commission during its hearings, the proposed modification shall be first referred back to the Commission for its recommendation.

SECTION 21: Amendment to the Cotati Municipal Code. Chapter 17.64.080 is hereby amended, as follows:
§ 17.64.080 Permit time limits, extensions, and expiration.

A. Time Limits.

1. Unless a condition of approval or other provision of this land use code establishes a different time limit, any permit or approval not exercised within 2.5 years (30 months) of approval shall expire and become void, except where an extension of time is approved in compliance with subsection B of this section.

SECTION 22: Amendment to the Cotati Municipal Code. Chapter 17.88.040 is hereby amended, as follows:

7.88.040 Hearing procedure.

A. Conduct of Hearing. Each hearing shall be conducted in compliance with rules of procedure adopted by the council for the applicable review authority.

B. Continued Hearing. A hearing may be continued. Continuance may occur without further public notice if the hearing body announces the date, time, and place to which the hearing will be continued prior to the adjournment or recess of the hearing. Public notice of the continued hearing shall be provided in compliance with this chapter if the review authority continues the hearing to a date uncertain. For any matter being considered at a hearing in compliance with this land use code, a hearing body may announce a tentative decision, and defer their action on a final decision until appropriate findings and/or conditions of approval have been prepared.

C. Hearing limits for residential projects. Final action to approve or deny any residential projects must be decided with a maximum of five public hearings as defined by State law. 358 of 545
SECTION 23: Amendment to the Cotati Municipal Code. Chapter 17.90.020 is hereby amended to modify and/or add the following terms and phrases, as follows:

17.90.020 Definitions of specialized terms and phrases. "Antique or collectible store" means a retail store that sells antiques, curios, vintage clothing and other items, gifts and souvenirs, and collectible items including sports cards and comic books. A store that primarily sells books is included under "General retail." Does not include stores selling other types of secondhand items, which are instead included in the definition of "Secondhand store."
“Curb Demand Management” means the practice of actively monitoring and regulating the various uses of curb space in a city, aiming to optimize its allocation and prioritize different demands like parking, loading zones, bike sharing, ride-hailing pick-ups, electric vehicle charging and deliveries, to ensure efficient mobility and access for all users while considering factors like traffic flow and safety.
“Curb Extension” means a widening of the sidewalk into the parking and/or travel lane to visually and/or physically narrow the roadway. Curb extensions may be utilized to provide numerous street enhancements including safer, shorter and more visible pedestrian crossings; increased space for street furniture, plantings, and other amenities; narrowing the road width and/or tightening the intersection curb raii (slowing automotive turning movements). Curb extensions have multiple
applications and may be segmented into various sub-categories, ranging from traffic calming to bus bulbs and midblock crossings.
"Demolition" means the decimating, razing, ruining, tearing down or wrecking of any facility, structure, pavement or building, whether in whole or in part, whether interior or exterior. “Emergency Vehicle Access (EVA)” means a roadway or other surface that provides access for emergency vehicles to reach a building, facility, or other area. This includes fire lanes, parking lot lanes, and public or private streets.
“Floor Area Ratio (FAR)” means the relationship between the total amount of usable floor area of a building and the total area of the lot/parcel. The Plan uses FAR for commercial development, with a range from 1.0-3.0 FAR allowed. “Microdistillery” means a small scale distillery that produces beverage-grade alcohol in relatively small quantities, often through single-batch processes. Sale of beverages for off-site consumption is also permitted in keeping with the regulations of the Alcoholic Beverage Control (ABC) and Bureau of Alcohol, Tobacco, and Firearms (ATF). Production quantity is limited to 10,000 cases of beverages (all beverage types combined) annually. May include the distribution of beverages for consumption at other sites.
“Micromobility” means a range of small, lightweight vehicles operating at speeds typically, below 25 km/h and driven by users personally. Micromobility devices include bicycles, e-bikes, electric scooters, electric skateboards, shared bicycles, and similar modes of transportation. 359 of 545
“Microtransit” means a technology-enabled private multi-passenger transportation services that serve passengers often using dynamically generated routes, and may expect passengers to make their way to and from common pick-up or drop-off points. Vehicles can range from large SUVs to vans to shuttle buses, providing transit-like service but on a smaller, more flexible scale. “Mobility Hub” means an area serving as a community anchor providing a welcoming environment that enables travelers of all backgrounds to access multiple transportation options and supportive amenities. Built on the backbone of frequent and high-capacity transit, mobility hubs offer a safe, comfortable, convenient, and accessible space to seamlessly transfer across different travel modes micromobility, ride share, personal automobiles and transit, which include supportive amenities designed and incorporated into a cohesive space. “Objective Design and Development Standards (ODDS)” means standards that apply to the design and build out of parcels including multifamily and mixed-use development. “Parking Management Plan” means a set of strategies, policies and regulations to manage parking demand and supply in a specific area. The goal of the plan shall be to maximize the efficiency of parking resources and minimize impacts on surrounding properties and uses. Parking management plans focus on a variety of needs, including space usage, access control, occupancy, layout, circulation, allocation, and violation management. Key elements include analysis of current and future needs, traffic flow strategies (like signage and designated zones), technology and physical design solutions such as speed humps and line markings. “Personal services” mean establishments providing nonmedical services to individuals as a primary use. Examples of these uses include:

1. Barber and beauty shops;

2. Clothing rental;

3. Dry cleaning pick-up stores with limited equipment;

4. Home electronics and small appliance repair;

5. Laundromats (self-service laundries);

6. Locksmiths;

7. Massage (licensed, therapeutic, nonsexual);

8. Pet grooming with no boarding;

9. Shoe repair shops;

10. Tailors;

11. Tanning salons;
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12. Tattoo and body piercing services.
“Personal services – Restricted” means personal services that may tend to have a blighting and/or deteriorating effect upon surrounding areas and which may need to be dispersed to minimize their adverse impacts. Examples of these uses include:

1. Check cashing stores;

2. Fortune tellers;

3. Palm and card readers;

4. Pawnshops;

5. Psychics;

6. Spas and hot tubs for hourly rental;
“Retail tobacco store” means a retail store utilized primarily for the sale of tobacco products and tobacco accessories and for which the sale of other products is merely incidental. “Tobacco product” means any substance containing tobacco or nicotine that is intended for human consumption, whether smoked, heated, chewed, absorbed, dissolved, inhaled, snorted, sniffed or ingested by any other means, including, but not limited to, cigarettes, cigars, pipe tobacco, snuff and chewing tobacco. “Tobacco product” also means any electronic device that delivers nicotine or other substances to the person inhaling from the device, including, but not limited to, an electronic cigarette, cigar, pipe, or hookah. Tobacco product does not include any cessation product specifically approved by the United States Food and Drug Administration for use in treating nicotine or tobacco dependence.
“Transit-Oriented Communities (TOC)” policies means standards that apply to the design and build out of parcels including multifamily and mixed-use development located within one halfmile of the SMART Train station. “Transportation Demand Management (TDM)” means a set of transportation strategies aimed at providing travelers with travel choices, such as route, time of travel and mode. In the broadest sense, demand management is defined as providing travelers with effective choices to improve travel reliability and policy measures to reflect the true cost of driving, such as congestion pricing, VMT charging and parking management/pricing.
“Zoning Code” means a set of specific local rules that dictates how land in a specific area can be used and developed.

SECTION 24: Construction and severability.

It is the intent of the City Council of the City of Cotati to supplement applicable state and 361 of 545 federal law and not to duplicate or contradict such law, and this ordinance shall be construed consistently with that intent. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this ordinance, or its application to any other person or circumstance. The City Council of the City of Cotati hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.

SECTION 25: Effective date.

This ordinance shall take effect thirty (30) days after its adoption pursuant to the California Government Code.

SECTION 26: Publication. The city clerk shall cause this ordinance to be published and/or posted as required in Section 36933 of the California Government Code.

IT IS HEREBY CERTIFIED that the foregoing ordinance was introduced at a regular meeting of the City Council of the City of Cotati held on December 9, 2025, by the following vote, to wit:

RESULT:

MOVER:

SECONDER:

AYES:

IT IS HEREBY CERTIFIED that the foregoing ordinance was duly adopted at a regular meeting of the City Council of the City of Cotati held on ______, by the following vote, to wit:

RESULT:

MOVER:

SECONDER:

AYES:

Approved:

Mayor
Attest:

Kevin Patterson, City Clerk
Approved as to form:
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City Attorney
This document is a true and correct copy of Ordinance Number ### and has been published or posted pursuant to law. California Government Code § 40806 Kevin Patterson, City Clerk
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PC RESOLUTION NO. (XX)

AN RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF COTATI

FINDING THE PROPOSED SANTERO WAY AND TRANSIT ORIENTED

COMMUNITIES REZONING PROJECT CONSISTENT WITH THE SWSP EIR AND

THE GENERAL PLAN EIR AND RECOMMENDING THE CITY COUNCIL ADOPT AN ORDIANACE TO AMEND TITLE 17 (LAND USE) OF THE COTATI

MUNICIPAL CODE TO CREATE TRANSIT ORIENTED COMMUNITIES (TOC) POLICIES AND ZONING DISTRICTS; INCORPORATE NO-NET-LOSS HOUSING POLICIES; AND MAKE OTHER ASSOCIATED UPDATES TO THE MUNICIPAL CODE; FILE NO. PA25-05
WHEREAS, on March 24, 2015, the Cotati City Council adopted its updated General Plan (Resolution No. 2015-12), which identifies the City’s vision for the future and provides a framework to guide decisions on growth and development consistent with the quality of life desired by Cotati citizens. On March 24, 2015, the Cotati City Council also certified the City of Cotati General Plan Environmental Impact Report (EIR), which reviewed potentially significant environmental effects resulting from the plan’s implementation and developed measures and policies to mitigate those impacts to less-than-significant levels; and WHEREAS, on May 24, 2023, the Cotati City Council adopted the 2023-2031 Housing Element Update to the General Plan (“Housing Element”), which includes goals and policies related to housing, including establishment of objective design standards for multifamily plex and single-family housing, and facilitation of increased housing development; and WHEREAS, as described in the Housing Element, Cotati’s population increased 4.4% between 2010 and 2020, compared to the population of Sonoma County as a whole, which increased only 1% between 2010 and 2020, and this growth may increase housing demand in Cotati; and
WHEREAS, in September 2023, the Association of Bay Area Governments (ABAG) and Metropolitan Transportation Commission (MTC) published draft administrative guidance on their Transit-Oriented Communities (TOC) policies. These policies are intended to intensify land uses within one half-mile of transit hubs with the primary goal of increasing the overall supply of housing while also supporting the creation of jobs and increasing transit ridership, in keeping with the Plan Bay Area 2050. While adoption of the TOC policies is voluntary for Bay Area jurisdictions, TOC compliance will be required to retain full eligibility for One Bay Area Grant (OBAG) funds by 2026, and
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WHEREAS, on November 6, 2023, the City of Cotati held a public scoping meeting as the first step in the California Environmental Quality Act (CEQA) process once a determination has been made that an environmental impact report (EIR) is required for a project. Per CEQA Guidelines § 15082 and 15083, a Notice of Preparation was circulated for a 30-day period ending on November 22, 2023, and the scoping meeting was held to solicit comments on the scope of the EIR. This meeting was an opportunity for the public, agencies, and stakeholders to comment on the specific issues that should be addressed in the environmental review. Individuals who were unable to attend the scoping meeting were invited to email or mail their comments to the Community Development Department, and WHEREAS, on April 2024, staff identified an opportunity for the environmental analysis being prepared for the Santero Way Specific Plan (SWSP) Update to be expanded to additionally analyze the potential impacts of implementing ABAG/MTC TOC policies on the other eligible parcels within the ½ mile radius surrounding the Cotati SMART station.

Including this analysis into the environmental impact report (EIR) already underway was approved by the City Council, and
WHEREAS, on July 19, 2024, the City of Cotati issued a second Notice of Preparation to identify that the scope of the environmental impact analysis was being expanded to analysis the potential impacts of full TOC implementation in Cotati; and WHEREAS, on August 5, 2024, the Planning Commission held a public workshop and second CEQA scoping meeting to assess new project alternatives and policy options resulting from the April decision to expand the scope of the project environmental analysis; and WHEREAS, on November 1, 2024, a Public Review Draft Specific Plan and Draft Environmental Impact Report (EIR) were made available for public comment for a 45-day period, as is required by State law. Only one comment was received during this comment period which came from CalTrans; and
WHEREAS, one purpose of the Cotati Municipal Code is to ensure that the General Plan, including the Housing Element, may be implemented and another purpose is to codify which land uses are allowed in all zoning districts of the City wh il e a ls o setting the standards for said land uses in order to preserve the quality of life in Cotati; and WHEREAS, the Legislature of the State of California has in Government Code Sections 65302, 65560, and 65800 conferred upon local governments the authority to adopt regulations designed to promote the public health, safety, and general welfare of its citizenry; and 365 of 545
WHEREAS, on September15, 2025, the Planning Commission of the City of Cotati and on September 24, 2025, the City Council of the City of Cotati each held workshops to discuss review and discuss the Santero Way and TOC Rezoning project, heard public comment, and provided direction to staff to develop a draft ordinance to amend CMC Title 17 (Land Use Code) to implement the project; and
WHEREAS, on November 3, 2025, the Planning Commission of the City of Cotati held a duly noticed public hearing to review the proposed ordinance adopting amendments to create the Santero Way and Transit Oriented Communities (TOC) zoning districts, as well as implement other TOC related policies. After receiving the staff report, reviewing a presentation from the Planning Division, and considering all oral and written comments submitted to the City regarding the Ordinance, the Planning Commission voted to approve a resolution recommending adoption of the proposed ordinance; and NOW THEREFORE BE IT RESOLVED, that THE Planning Commission of the City of Cotati does hereby find:

SECTION 1: Recitals.

The above recitals are true and correct and are incorporated into the findings herein.

SECTION 2: Record
The Record of Proceedings (“Record”) upon which the City Council makes its decision includes, but is not limited to: 1) the 2015 General Plan, 2) the FEIR certified for the 2015 General Plan, 3) the 2023-2031 Housing Element Update adopted by the City Council in 2023 and the associated Mitigated Negative Declaration, 4) the 2025 Santero Way Specific Plan (SWSP) Update and the associated Environmental Impact Report (EIR) analyzing the potential impacts of the SWSP Update and 5) all staff reports, City files and records, and other documents prepared for and/or submitted to the City Council related to adoption of the amendments to Title 17 (Land Use) of the Cotati Municipal Code to establish the Santero Way (WS) and Transit Oriented Communities (TOC) zoning districts and implement other identified changes to the Cotati Municipal Code to facilitate housing development.

SECTION 3: General Plan Consistency
The Council of the City of Cotati does hereby find that the amendments to Title 17 (Land Use) of the Cotati Municipal Code to establish the Santero Way (WS) and Transit Oriented Communities (TOC) zoning districts and implement other identified changes to the Cotati Municipal Code to facilitate housing development, as set forth in this Ordinance, are in the best interest of the City in that they will further established goals, policies, and implementation programs of the General Plan, including the Housing Element and Santero Way Specific Plan to expand housing opportunities, conserve resources, and use land appropriately.

Specifically, these amendments are consistent with and implement the following Housing 366 of 545
Element policies and programs:

Program 1-8: Residential Building Decarbonization: Continue to permit and encourage mixed uses and higher densities on in-fill and vacant sites in Priority Development Areas (PDAs) with public serving facilities, such as medical clinics, schools, and grocery stores, to discourage sprawl and encourage short vehicle trips and/or alternative forms of transportation.

Policy H-2.3 While the City is able to accommodate its share of the regional housing need without rezoning during the current Housing Element period, to the extent necessary, the City will consider land use re-designation and promotion of existing innovations like the Cottage Housing Ordinance in order to accommodate development capacity that affirm all other goals of the City’s General Plan and maintain Cotati’s rural character.

Policy H-2.6 Encourage mixed use development, including residential and live/work uses in commercial and office areas where the viability of the nonresidential activities would not be adversely affected.

Policy H-2.11 Encourage housing development on existing infill sites in order to efficiently utilize existing infrastructure.

In addition, these amendments are consistent with and implement the following General Plan policies and programs:

Policy CON 2.1: Improve air quality through continuing to require a compact development pattern that focuses growth in and around existing urbanized areas, locating new housing near places of employment, encouraging alternative modes of transportation, and requiring projects to mitigate significant air quality impacts.

Policy CON 3.10: Ensure that the layout and design of new development and significant remodels encourages the use of transportation modes other than automobiles and trucks.

Policy LU 1.1: Maintain a supply of developable mixed-use, commercial, industrial, and residential lands sufficient to meet desired growth and economic needs over the planning period.

Policy LU 2.4: Maintain the character of existing neighborhoods by ensuring new development is compatible in style, size, color, and footprint with the existing residences in the neighborhood.

Policy LU 2.5: Locate medium and higher density housing within easy walking or bicycling distance of public facilities, services, transit, and major employers.

Policy LU 2.6: Require new residential development to be consistent with the smalltown character of Cotati and designed and landscaped in an aesthetically pleasing and sustainable manner.

Policy LU 2.10: Encourage mixed-use, pedestrian-, and transit-oriented development, with a focus on the Hub and major corridors.
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SECTION 4: Compliance with the California Environmental Quality Act.

The Planning Commission of the City of Cotati does hereby find that the proposed ordinance to amend Title 17 (Land Use) of the Cotati Municipal Code to establish the Santero Way (WS) and Transit Oriented Communities (TOC) zoning districts and implement other identified changes to the Cotati Municipal Code to facilitate housing development.is consistent with the requirements of the California Environmental Quality Act (CEQA) as the impacts of the proposed ordinance have been analyzed in the Santero Way Specific Plan EIR (SCH#2023100654) and further the proposed CMC changes are consistent with the program Final Environmental Impact Report (SCH# 2013082037) for the Cotati General Plan Update that was certified on March 24, 2015 (Resolution Number 2015-11) and the Mitigated Negative Declaration certified for the 2023-2031 Housing Element (SCH # 2013082037) adopted and certified on June 2, 2023; that this ordinance is consistent with and implements the City’s adopted General Plan, including the 2023-2031 Housing Element and Santero Way Specific Plan Update, and no new environmental impacts peculiar to the project site(s) have been realized or identified, therefore no additional environmental analysis is required under CEQA, including Section 15183, and therefore pursuant to Section 15168 of the CEQA Guidelines, as such no further environmental review is required.

THEREFORE, IT IS HEREBY CERTIFIED that the foregoing resolution was duly adopted at a regular meeting of the Planning Commission of the City of Cotati held on November 3, 2025 by the following vote, to wit:

RESULT:

MOVER:

SECONDER:

AYES:

NAYS:

ABSENT:

Approved:___________________________
Chair
Attest:______________________________
Carla Duncan, Permit Technician
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Cotati Transit Oriented
Community (TOC) and
Santero Way Rezoning
City Council
December 9, 2025
Noah Housh
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Project Description
Consideration of an ordinance to implement the Santero Way Specific Plan (SWSP) and TOC policies on certain properties within ½ mile of the SMART Train Station and Citywide.

SWSP and TOC Policies include:
• Residential Density of 25-35 units per acre
• Commercial Floor Area Ratio (F.A.R.) of 1.0-3.0
• Parking maximum 1.5 spaces per residential unit and 4 spaces per 1000 commercial square feet, No Minium parking
requirement
• Implementation of housing Protection, Production and
Preservation policies (The Three Ps of Housing)
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Project Description Cont.

Consideration of an ordinance to implement the Santero Way Specific Plan (SWSP) and TOC policies on certain properties within ½ mile of the SMART Train Station and Citywide.

Additional TOC Policies include:
• Commercial Stabilization
• Parking Management
• Station Access and Circulation
• Additional Code Cleanup-Definitions-Tattoo, Tobacco, Micro- distillery, Vintage Clothing and Codify “Amendment” process 371 of 545
State Housing Law
Trends
• Reduce/remove local control
• Limit amount of parking City can
require near transit
• Allow certain affordable housing
projects to develop “by-right” with
no public process.
• City expected to support housing
development at all affordability
levels-15% Inclusionary BMR Units
• Transit Oriented Community (TOC)
Policies (this project)
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Background
• August 2023-City initiated the Santero Way Specific Plan SWSP Update • September 2023-ABAG/MTC published draft TOC Policies
• April 2024-Staff updated SWSP CEQA to include TOC eligible parcels • February 2025-SWSP Update Adopted
• May 2025-ABAG/MTC TOC Policy Finalized
• June 25, 2025-TOC Neighborhood Meeting
• September 15, 2025-PC TOC Workshop
• September 23, 2025-CC TOC Workshop
• November 3, 2025-PC TOC Public Hearing
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Transit Oriented Communities (TOC)
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Parcels to
be Included:

Yellow:

Santero Way
Blue:

E. Cotati Ave
Olivers
SMART
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Community
Concerns • Parking, Parking, Parking!! • Mix of Land Uses? • Manage impacts of intensified land uses
• Emergency Evacuation
Routes
• Architectural Consistency • Maintain Open Space • Affordability-15% min • Ownership & Rental Mix 12/4/2025 Santero Way Specific Plan Rezoning Concept 9
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TOC Compliance Summary
• Four Policy Categories
-Minimum Residential and Commercial Density
-Affordable Housing Production, Preservation, Protection and Commercial Stabilization -Parking Management
-Transit Access and Circulation
• Compliance Thresholds Based on Transit Tiers- (SMART/North Bay = Tier 4) • Some Compliance Standards Mandated (density and parking numbers); Others Selected from Menu of Options
• Applicability Choice: 1/2 Mile TOC Radius vs. City-wide -Ease of implementation and added benefits.
-Example: parking management
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TOC Compliance Strategy
• Create Two New Zoning Districts
-Santero Way (SW) (allow interim uses of existing buildings) -Transit Oriented Community (TOC)
• Update Existing Zoning Chapters as needed (parking; condominium; amendments)
• Create new department programs (Small Business Liaison) • Website Updates
• Submit all documentation through ABAG/MTC TOC Compliance Portal
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Recommendation Philosophy
• Community Input
• Council Goals
• Adopted Policy (Housing
Element)
• Department Work Plan
• State Mandates (Existing
Requirements/Commitments)
• Funding Availability and
Commitment Timelines
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Parking Management
Requirement Response
Residential Parking Minimums Proposed in TOC: 0 spaces per unit Residential Parking Maximums Proposed in TOC: 1.5 spaces per unit Commercial Parking Minimums Proposed in TOC: 0 spaces per sq ft Commercial Parking Maximums Proposed in TOC: 4 spaces/1000 sq ft Allow Shared Parking Between Different Land
Uses
Current Code(s) Consistent
Allow Unbundled Parking (Separate the Cost of a
Parking Space from Rent/Sales Price)
Proposed City-wide (17.26.040)
Residential Bicycle Parking: 1 Space per Unit Proposed in TOC (17.36.070) Office Bicycle Parking: 1 Space per 5,000 sq. ft. Proposed In TOC (17.36.070) 381 of 545
Station Access & Circulation
Requirement Response
Adopt a jurisdiction-wide Complete Streets Policy Compliant since OBAG 2 Prioritize implementation of active transportation projects in TOC area(s)
See future CIP Project List
and Project COAs
Complete an access gap analysis and capital improvement program for station access
Included in SWSP Update
and ATP
Identify Mobility Hub planning and implementation
opportunities in TOC area(s)
Zoning Changes proposed
City-wide (17.39.030 G.

9.)
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Additional Code Clean-Up
• Tattoo and Body Piercing-Proposed to be Reclassified from Personal Services Restricted to Personal Services
• Retail Tobacco Store-Proposed to be Added to Definitions and CMC-Not Permitted
• PC Recommendation-Incorporate Micro-Distillery into CMC • PC Recommendation-Ensure vintage clothing sales permissible land use
• Codify ‘Amendment’ process-staff recommendation
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Planning Commission Recommendation
• PC Reviewed Ordinance on November 3, 2025, voting 2-1 that the Ordinance be recommended for approval to the Council • Concerns over the proposal to unbundle parking were identified • PC directed staff to provide information on TOC score impacts associated with unbundled parking and costs associated with purchasing a parking space.
• Unbundled Parking provides 1 point of TOC Compliance
• Parking space cost range significantly $100-$500/mo
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It is recommended by the Community
Development Department and the Planning
Commission that the City Council introduce and
conduct the first reading of an ordinance to
implement TOC policy requirements.
12/4/2025 TOC and Santero Way Rezoning 17
Questions?
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TOC
Rezoning
Ordinance
Parcels
Olivers
SMART
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Residential Production Summary (choose 2)
• Production Policy 4- Public Land for Affordable Housing. Development of 120 E. Cotati Ave with 100% affordable housing project is proposed to satisfy this compliance element of the ABAG/MTC TOC policy (Appendix A of MTC Admin Guidance pg. 9-10).
• Production Policy 6-Streamlined Entitlement Processes. City to match/implement the SB 330 vesting rights and “no net loss” provisions (Appendix A of MTC Admin Guidance pg. 17-18). See CMC redline Sections 17.30.082; 17.60.070; and 17.64.080, for proposed implementation language (redline attached).
• *Inclusionary Zoning-15% Inclusionary; Affordability across all units=80%AMI Avg 387 of 545
Residential Preservation Policy (choose 2)
Preservation Policy 4-Condominium Conversion Restrictions. Require units converted to condos be replaced 1:1 with comparable rental units; purchased by current tenants; or converted to affordable housing with protections for existing tenants (Appendix A of MTC Admin Guidance pg. 24-25). Implements HE Program 4-1. See CMC redline Sections 17.30.082
Preservation Policy 7-Mobile Home Preservation. Preserve mobile homes from conversion to other uses that may result in displacement of existing residents (Appendix A of MTC Admin Guidance pg. 31-32 for compliance details). Existing CMC mobile home park regulations adequate. Implements HE Program 1-6 *Code Enforcement to Prevent Displacement-(See Protection Policy) 388 of 545
Residential Protection Policy (choose 2)
Protection Policy 2-No net Loss and Right to Return to Demolished Homes. One-to-one replacement of units at the same affordability, the same number of bedrooms/bathrooms, and square footage to the units demoed. Displaced tenants get right of first refusal to rent new units at the same rent as demolished units (see Appendix A of MTC Admin Guidance pg. 37-38 for compliance details). See CMC redline Sections 17.30.082 for proposed implementation language (redline attached).

Protection Policy 6-Rent Stabilization. Restrict annual rent increases based on inflation or other metric, exceeding AB 1482 (2019, Chiu). Cotati’s existing mobile home park rent stabilization code may be adequate to comply. As this is yet to be determined staff has proposed three protection policies as a means to comply.

Protection Policy 7-Previenting Displacement from Code Enforcement Activities. Policies, programs, or procedures designed to minimize displacement by substandard conditions through code enforcement (Appendix A of MTC Admin Guidance pg. 48-50). Implements HE Program 4-5.
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Commercial Stabilization (choose 1)
Commercial Stabilization Policy 4-Small Business Advocate.

Provide a single contact for business owners (see Appendix A of MTC Admin Guidance pg. 60-61 for compliance details).

City staff to update the CD Department webpage to advertise a “Business Liaison” program allowing business to have a staff member assigned to assist with challenges and concerns.

Also consistent with and implements the FY 2025-26 CD Work Plan.
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Parking Policy Options (choose 1)
• Policy 2-Curb Strategy/Management. Create priority for curb access for variable needs-mobile delivery, multimodal
transportation and automobile. Direct that infrastructure serving each of the users of the curb space be built into future developments to support functional circulation around the City.

CMC redline Sections 17.39.030 G. 8., (redline attached). 391 of 545
Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: REORGANIZATION OF CITY COUNCIL FOR CALENDAR
YEAR 2026
Date: December 9, 2025
Written by: Kevin Patterson, City Clerk
Recommendation
It is recommended that the City Council elect a Mayor and Vice Mayor from among its members, to be effective January 1 through December 31, 2026.

Background
Per the City Council Rules (City Council Policy 2025-03), following the certification of the election and seating of new Councilmembers, the Mayor and Vice Mayor will be elected by a majority vote of a quorum of the City Council. The City Council shall consider the election of a Mayor and Vice Mayor for a one (1) year term at the first regular meeting in December of each year.

Analysis/Discussion
The new Mayor and Vice Mayor will assume their titles on January 1, 2026, and the new Mayor will chair the City Council meetings beginning at the first meeting in January.

For convenience, below is a summary of the recent Mayors and Vice Mayors. 392 of 545
Mayor Vice Mayor Year
Ben Ford Sylvia Lemus 2025
Laura Sparks Ben Ford 2024
Susan Harvey Laura Sparks 2023
Mark Landman Susan Harvey 2022
John Moore Mark Landman 2021
Past practice is that the current Vice Mayor will be appointed as Mayor for the subsequent year.

The City Councilmember with the longest gap since their last appointment as Mayor is then typically appointed as Vice Mayor. If City Councilmembers have the same term (elected in the same election), then the typical criteria to determine order of appointments is prior experience on other City bodies, with the more experienced member being appointed first.

If a nominated City Councilmember declines an appointment, the next City Councilmember in this rotational method is then typically appointed to Vice Mayor or Mayor, as applicable.

Financial Considerations
None.

Environmental Issues
The action of City Council reorganization does not constitute a project as defined by California Environmental Quality Act Guidelines Section 15378; therefore, no further environmental review is required.
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Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: COUNCIL ASSIGNMENTS AS REPRESENTATIVES AND

LIAISONS TO VARIOUS COMMITTEES FOR CALENDAR
YEAR 2025
Date: December 9, 2025
Written by: Kevin Patterson, City Clerk
Recommendation
It is recommended that the Council have an initial conversation, and if ready, adopt a motion to assign representatives and liaisons to various committees and commissions for calendar year 2026.

Background
Each year, the City Council reviews assignments to committees, commissions and regional assignments that are directly appointed by the City Council. This is typically done concurrently with the City Council reorganization on off-election years in December. On election years when new City Council members join the City Council, appointments are typically made at the first meeting in January.

Many years ago, Cotati had weak representation regionally, so Cotati’s interests were often ignored when decisions were being made. However, over the past decade or so, Cotati has been a key player in regional discussions on a variety of issues, including water supply, transportation, solid waste and negotiating the formation of Sonoma Clean Power, all of which have directly benefited both Cotati residents and the region as a whole. Therefore, it is important to continue to be strongly engaged in regional bodies.

Analysis/Discussion
The current Cotati City Council Appointments and Assignments sheet listing the active committees is attached for review. This is a worksheet listing active committees and approximate time commitments, including a calendar of the various meetings. Current 394 of 545
appointees may take this opportunity to update the ‘Hours/Duties’ portion of the appointments and assignments worksheet as needed.

Note that Councilmember Harvey and Vice Mayor Lemus also have appointments on statewide Cal Cities committees. Councilmember Harvey is on the Public Safety Policy Committee and Vice Mayor Lemus is on the Revenue & Taxation Policy Committee.

Councilmember Sparks has been approved by the Council for an extended leave of absence, from January 26 – May 11, 2026. The alternate appointee for committees where Councilmember Sparks is the primary member will need to attend meetings in her place for the duration of leave.

Based on prior City Council direction, the intent of this item is to have an initial non-action discussion about City Council appointments. However, if the City Council is ready to take action, this item may also be acted on. If the City Council chooses to only have a non-action discussion, this item will be agendized on January 13, 2026 to finalize appointments.

Financial Considerations
None.

Environmental Issues
The action of assigning representatives and liaisons to various committees and commissions does not constitute a project as defined by California Environmental Quality Act Guidelines Section 15378; therefore, no further environmental review is required. 395 of 545