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Ordinance No. _____
Ordinance of the Council of the City of Palo Alto Amending Chapters 18.14 (Housing Incentives), 18.76 (Permits and Approvals), and 18.77 (Processing Permits and Approvals) of Title 18 (Zoning) of the Palo Alto Municipal Code to Implement Programs 1.3 of the City of Palo Alto 2023-2031 Housing Element T
he Council of the City of Palo Alto ORDAINS as follows:
S
ECTION 1. Findings and Declara�ons.
(a
) On May 8, 2023, the City Council adopted the City of Palo Alto 2023-2031 Housing Element (“Housing Element”) pursuant to Government Code Sec�on 65585. (b
) In accordance with AB 1397 (2017), Program 1. 3, Sites Used in Previous Housing Cycle, requires rezoning and a “by right” approval process for qualifying projects proposed on certain housing opportunity sites that were included as opportunity sites in prior housing elements.
(c) G
overnment Code Sec�on 65583.2 , subdivision (c) and the Housing Element require that the City complete its implementa�on of Program 1.3 by January 31, 2024, which is one year from the statutory deadline for adop�on of the Housing Element. (d
) Ordinance No. XXXX, adopted on December 11, 2023, accomplished the required rezoning for all sites subject to Program 1.3.
(e
) This ordinance implements the “by right” development process for sites subject to Program 1.3 and makes conforming changes to exis�ng provisions of Title 18.
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ECTION 2. Sec�on 18.14.050 ( By Right Status of Qualifying Projects on Specified Housing Opportunity Sites ) of Chapter 18.14 (Housing Incen�ves) of Title 18 (Zoning) of the Palo Alto Municipal Code is added to read as follows:
18.1 4.050 By Right Status of Qualifying Projects on Specified Housing Opportunity Sites (a
) Mul�-family residen�al projects on housing opportunity sites shall be a “use by right,” subject to all of the following requirements:
(1
) The site is designated in Appendix D of the Housing Element to accommodate lower income households and it is either:
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(A) a nonvacant site included in one prior housing element; or (
B) a vacant site that has been included in two or more consecu�ve, prior housing elements;
(2
) The site was not previously approved to develop a por�on of City’s regional housing need alloca�on;
(3
) The project restricts at least 20 percent of the units to rents or sales prices affordable to lower income households; and
(4
) The site has sufficient water, sewer, and other dry u�li�es available and accessible. (b
) “use by right” shall have the same meaning as provided in Government Code Sec�on 65583.2, subdivision (i).
(c) “
lower income households” shall have the same meaning as provided in Health and Safety Code Sec�on 50079.5.
(d
) Qualifying projects shall be reviewed pursuant to Sec�on 18.77.074.
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ECTION 3. Sec�on 18.77.020 (Architectural Review) of Chapter 18.76 (Permits and Approvals) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (addi�ons underlined, dele�ons struck through, and omited text le� unchanged indicated by [. . .]):
18.7 6.020 Architectural Review
(a) Purpose
[
. . .]
(b) Applicability
N
o permit required under Title 2, Title 12 or Title 16 shall be issued for a major or minor project, as set forth in this sec�on, unless an applica�on for architectural review is reviewed, acted upon, and approved or approved with condi�ons as set forth in Sec�on 18.77.070. (1) Exempt Projects. The following projects do not require architectural review:
[
. . .]
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(C) H ousing development projects, as defined in Government Code Sec�on 65589.5(h)(2) (the Housing Accountability Act), but only to the extent if such projects qualify for ministerial review under Government Code sec�ons 65913.4 or 65951, or if they comply with all applicable objec�ve standards, in this code and the City’s discre�on is thereby qualify for streamlining under limited by Government Code sec�ons 65589.5 , 65913.4, or 65905.5 . Such projects shall be subject to the processes set forth in Sec�ons 18.77.073 or 18.77.074, as applicable. [
. . .]
SECTION 4. Sec�on 18.76.025 (Mul�-Family Residen�al Projects Exempt Architectural Review) of Chapter 18.76 (Permits and Approvals) of Title 18 (Zoning) of the Palo Alto Municipal Code is added to read as follows:
18.7 6.025 Mul�-Family Residen�al Projects Exempt from Architectural Review N
o permit required under Title 2, Title 12 or Title 16 shall be issued for a mul�-family residen�al project that is exempt from Architectural Review under Sec�on 18.76.020, subdivision (b)(1)(C), unless it first receives a planning approval from the Planning Director under this Sec�on. Projects subject to ministerial review or that are defined as a “use by right” under state law shall be reviewed under Sec�on 18.77.074. Projects that are not subject to ministerial review, but that comply with all applicable objec�ve standards, shall be reviewed under Sec�on 18.77.073.
SECTION 5. Sec�on 18.77.073 (Streamlined Housing Development Project Review Process) of Chapter 18.77 (Processing of Permits and Approvals) of Title 18 (Zoning) of the Palo Alto Municipal Code is amende d to read as follows (addi�ons underlined, dele�ons struck through, and omited text le� unchanged indicated by [. . .]):
18.7 7.073 Streamlined Housing Development Project Review Process (
a) Applicability
This sec�on shall apply to applica�ons for residen�al mixed -use and mul�family housing development projects, as defined in Government Code Sec�on 65589.5(h)(2), that comply with all applicable objec�ve standards in this code and for which the City’s discre�on is thereby qualify for streamlining under limited by Government Code sec�ons 65589.5, or 65905.5. [
. . .]
SECTION 6. Sec�on 18.77.074 (Ministerial and By Right Review Processes) of Chapter 18.77 (Processing of Permits and Approvals) of Title 18 (Zoning) of the Palo Alto Municipal Code is added to read as follows:
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18.77.074 Ministerial and By Right Review Process
(a) Pur
pose and Applicability.
This sec�on is intended to define a streamlined, ministerial review process for qualifying Housing Development Projects that are submited pursuant to streamlining provisions in AB 2162 (2018), AB 1397 (2017), and SB 35 (2017). This sec�on shall apply to mul�-family residen�al projects that are subject to ministerial review or defined as a “use by right” in st at e la w, including, but not limited to, Government Code Sec�ons 65651, 65583, 65583.2, and 65913.4. This sec�on does not apply to the crea�on of an accessory dwelling unit and/or junior accessory dwelling unit.
T
he review required by this sec�on shall not involve the exercise of discre�on in a manner that would cons�tute a “project” for purposes of the California Environmental Quality Act (CEQA). This sec�on does not, however, excuse a project involving a subdivision from compliance with Title 21 and the subdivision map processes set forth therein, which may result in a “project” for purposes of CEQA.
(b)
Staff level review.
Applica�ons under this sec�on shall be reviewed by City staff for compliance with applicable objec�ve standards in the City’s Comprehensive Plan, Specific Plans, Area Plans, Municipal Code, and other rules and regula�ons . A decision on the applica�on shall be made by the Planning Director within any �meframes dictated by applicable state law. (c)
Public study session.
Prior to preparing a writen decision, the Director may, in his or her sole discre�on, refer the applica�on to the Architectural Review Board or to other advisory boards or commissions for informal review. The recommenda�ons of such boards and commissions shall not be binding. (d) Public no�ces.
No�ce of a public mee�ng to consider the applica�on shall be given at least seven days prior to the mee�ng by mailing to the applicant and all residents and owners of property within 600 feet of the project. No�ce shall include the address of the property, a brief descrip�on of the proposed project, and the date and �me of the hearing.
SECTION 7. If any sec�on, subsec�on, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or uncons�tu�onal by a decision of any court of competent jurisdic�on, such decision shall not affect the validit y of the remaining por�ons of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every sec�on, subsec�on, sentence, clause, or phrase not declared invalid or uncons�tu�onal without regard to whether any por�on of the ordinance would be subsequently declared invalid or uncons�tu�onal.
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SECTION 8. In accordance with the California Environmental Quality Act (CEQA), the City prepared an Addendum to the 2017 Comprehensive Plan Environmental Impact Report (EIR), analyzing the poten�al environmental impacts of the 2023 -2 031 Ho usi ng Eleme n t . On M a y 8, 2023, the City Council adopted Resolu�on No. 10107, finding that the Addendum and the 2017 EIR adequately analyzed the environmental impacts of the Housing Element, including Program
1.3 of the Housing Element, which this ordinance implements.
SECTION 9. This ordinance shall be effec�ve on the thirty -fi r s t d a t e a � e r t h e d a t e o f i t s adop�on.
IN
TRODUCED:
P
ASSED:
AY
ES:
N
OES:
AB
SENT:
A
BSTENTIONS:
AT
TEST:
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_____________________ ____________________________
City Clerk Mayor
AP
PROVED AS TO FORM: APPROVED:
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_____________________ ____________________________
Assistant City Atorney City Manager
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_____________________
Director of Planning and Development Services