1 Ordinance No.
Ordinance of the Council of the City of Palo Alto Amending Various Chapters of Title 18 (Zoning) of the Palo Alto Municipal Code to Implement Programs 3.3 and 3.4 of the 2023-2031 Housing Element to Revise the Housing Incentive Program and Affordable Housing Incentive Program
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. On May 8, 2023, the City Council adopted Resolution No. 10107, approving an Addendum to the Comprehensive Plan Environmental Impa ct Report (EIR), making various findings, and adopting the 2023-2031 Housing Element for the City of Palo Alto.
B. On December 18, 2023, the City Council approved a Revised Addendum to the Comprehensive Plan EIR and adopted Ordi nance No. 5608, rezoning sites in the 2023- 2031 Housing Element Sites Inventory to accommodate the City’s Regional Housing Needs Allocation.
C. On April 15, 2024, the City Council adop ted Resolution No. 10155, making various findings, adopting a Revised 2023-2031 Housing Element, and authorizing the Director of Planning and Development Services to ta ke further actions necessary to achieve certification of the Housing Element by the California Department of Housing and Community Development (HCD).
D. On August 19, 2024, HCD found that the Revised 2023-2031 Housing Element, as further modified on July 17, 2024, was substantially compliant with state law.
E. Programs 3.3 and 3.4 of the City’s Revised 2023-2031 Housing Element direct a variety of updates to the City’s Housing Incentive Pr ogram and Affordable Housing Incentive Program, which are implemented in this ordinance.
F. On ________, 2024, the Planning and Tran sportation Commission considered and recommended that the City Council adopt this ordinance to implement the 2023-2031 Housing Element.
SECTION 2. Section 18.14.030 (Housing Incentive Pr ogram) of Chapter 18.14 (Housing Incentives) of Title 18 (Zoning) of the Palo Alto Municipal Code is here by amended to read as follows:
18.14.030 Housing Incentive Program
(a) Purpose
The housing incentive program modifies base zoning district standards and streamlines review to encourage higher-density multi-family housing production. The program is a local 2 alternative to State Density Bonus Law.
(b) Applicability
The housing incentive program shall apply to the following zoning districts or locations:
(1) Chapter 18.13: RM-20, RM-30, RM-40
(2) Section 18.14.020: GM/ROLM Focus Area (see Figure 1) (3) Chapter 18.16: CC(2); CN or CS-zoned sites on El Camino Real; CS sites on San Antonio Road between Middlefield Road and East Charleston Road
(4) Chapter 18.18: CD(C)
(5) Chapter 18.29: NV- R3, NV- R4, NV- MXL, NV- MXM, NV- MXH, NV- PF (c) Procedures
The regulations established by this section pr ovide increases in development standards for eligible projects electing to take advantage of the Housing Incentive Program. A property owner may elect to use the site consistent with the underlying zoning district.
The Housing Incentive Program provides flexibility in development standards that allow for a density increase that would in most case s exceed density bonuses under state density bonus law (Government Code Section 65915). Therefore, a project applicant may utilize the provisions of this section as an alternative to use of the state density bonus law implemented through Chapter 18.15 (Density Bonus) of this Title, but may not utilize both this section and state density bonus law. If an applicant utilizes state density bonus law, the provisions of this section shall not apply.
(d) Permitted Uses
The following uses shall be permitted to use the housing incentive program:
(1) Multiple-Family Residential.
(2) In conjunction with a Multiple-Family Residential use, any uses permitted in the underlying district, provided the uses are limited to the ground floor. (e) Development Standards
For all eligible zoning districts, the housing incentive program shall modify underlying zoning district standards as shown in Table 5. Floor area ratio (FAR) and building height standards are specified in Table 6; unlike the standards in Table 5, these standards vary by zoning district and whether or not a site is classified as an opportunity site li sted in Appendix D of the Housing Element.
Table 5
Housing Incentive Program Development Standards
Minimum Site Specifications
Standards for All Eligible
Zoning Districts Subject to regulations in:
Implements Program 3.4D
to add RM and GM/ROLM
Focus Area districts
Similar to
existing
procedures
for AHIP
Based on the City’s
Definitions in Ch. 18.04,
MFR is defined as 3+ units
Implements
Program 3.4B+D
re: modified
standards
3 Minimum Setbacks
Front Yard (ft) Same as underlying district
or 10 ft. (whichever is less)
Setback lines imposed by a
special setback map
pursuant to Chapter 20.08
of this code or imposed to
create required effective
sidewalk widths apply.
Rear Yard (ft) Same as underlying district
Rear Yard abutting residential
zoning district (ft)
Same as underlying district
Interior Side Yard if abutting
residential zoning district (ft)
Same as underlying district
Street Side Yard (ft) Same as underlying district
or 8 ft. (whichever is less)
Maximum Site Coverage 100% (commercial districts
and GM/ROLM Focus Area)
70% (residential districts)
Minimum Landscape/Open Space
Coverage
Same as underlying district See 18.14.020 for
modified standards
applicable to Housing
Element Opportunity Sites
Minimum Usable Open Space Same as underlying district
Maximum Height (ft) See Table 6 for standards,
by zoning district
Portions of a site within 50 ft of a
low density residential district (RE,
R1, NV-R1, R2, NV-R2, RMD)
35 ft
(1)
Daylight Plane for lot lines
abutting a low density residential
district (RE, R1, NV-R1, R2, NV-R2,
RMD)
Unless the underlying
zoning district standard is
more permissive, the
daylight plane shall be as
follows:
Initial height: 16 feet,
measured at the property
line
Slope: 45 degrees
Reduced
setback
requirements
will affect the
ROLM and RM
zones (20 to
10 ft front and
16 to 8 ft street
side).
Special setbacks
retain sidewalk
dimensions on El
Camino Real and
in NVCAP
This would increase coverage in the RM and
CN zones and the GM/ROLM Focus Area
as well as certain NV zones. Lot coverage is
already 100% in the CD(C) and CC(2), as well
as CS zone for non-residential uses. Projects
generally will not achieve 100% coverage due
to setback, landscaping, and stormwater req's.
Similar to
existing
AHIP height
transition
standards
Requires a
dayight plane,
but allows for
two stories next
to the shared
property line
4 Maximum Residential
Density (net)
RM-20 Zone (Non-Housing
Element Opportunity Site):
40 du/ac
All Other RM Zones: 60
du/ac, except no density
limit if at least 10% of units
are 3+ bedrooms
All Other Zones: None.
Minimum Commercial FAR Same as underl ying district See Section 18.40.180 (retail preservation)
Maximum Total FAR See Table 6 for standards,
by zoning district
Minimum Vehicle Parking
1 space per studio/1-bed
1.5 spaces per 2-bed+
Additional adjustments to
the required ratios may be
considered per Chapter
18.52 (Parking).
TDM Plan
Projects providing fewer
than 50% of the parking
spaces that would be
required under Section
18.52.040 shall develop and
implement a transportation
demand management plan
containing, at a minimum:
(1) free transit passes for
residents (one per/unit);
(2) at least one on-site
short-term residential
loading space;
(3) bike repair station;
(4) allocation of 5% of
required bike parking
spaces to cargo bikes;
(5) provision of outlets
appropriate spaced for e-
bike charging at 20% of
required bicycle parking
See Chapter 18.52.050(d)
for additional TDM that
may be required.
None of these other zones
currently have a density limit
Incentive for family
housing
These parking
ratios match
the basic State
Density Bonus
Law ratio
New TDM
requirements
for projects with
reduced parking
TDM measures
build on El
Camino Focus
Area measures
5 spaces; and
(6) a micromobility program
with a fleet equal to 5% of
the number of proposed
units.
Notes:
(1) Distance shall be measured from the property line of the subject site.
Table 6
FAR and Building Height Standards, by Eligible Zoning District
(THESE COLUMNS TEMPORARILY
INCLUDED FOR REFERENCE ONLY) Housing Incentive Program Standards
Existing
Base
District
Standard
Existing
18.14.010
Standards
Existing
HIP
Standards Maximum FAR
(1)
Maximum
Building
Height
Non-Opp
Sites
Opp Sites MFR Non-
Housing
Element
Opportunity
Sites
Housing
Element
Opportunity
Sites
CC(2) Max
Total
FAR: 0.6
Max
height:
37 ft.
Max Total
FAR: 2.0
Max Total
FAR: 2.0
Max
Coverage:
100%
2.6 3.5
60 ft.
CS (El
Camino
Real)
Max
Total
FAR: 0.6
Max
height:
50 ft.
Max Total
FAR: 1.25
Max Total
FAR: 1.5
Max
Coverage:
100%
2.85 3.5
60 ft.
CS (San
Antonio
Max
height:
Max Total
FAR: 1.25
Max Total
FAR: 2.0
2.0 2.0 50 ft.
Existing standards for reference. No
modifications to the CS (San Antonio) or
CD(C) (Downtown) districts are proposed in
order to let the San Antonio CAP and
Downtown study determine changes.
6 Road
between
Middlefield
Road and
East
Charleston
Road)
50 ft.
CN (El
Camino
Real)
FAR: 0.5
Max
height:
40 ft.
Max Total
FAR: 1.25
Max Total
FAR: 1.5
Max
Coverage:
100%
2.5 3.25
50 ft.
CD(C) Max
height:
50 ft.
Max Total
FAR: 2.0
Max Total
FAR: 3.0
3.0 (2) 3.0 (2) 50 ft.
RM-40 FAR: 1.0
Max
height:
40 ft.
Max Total
FAR: 1.5
n/a 3.0 50 ft.
RM-30 FAR: 0.6
Max
height:
35 ft.
Max Total
FAR: 1.25
n/a 2.5 40 ft.
RM-20 FAR: 0.5
Max
height:
30 ft.
Max Total
FAR: 1.25
n/a 2.0 40 ft.
GM/ROLM
Focus Area)
n/a Max Total
FAR: 2.5
Max
height: 60
ft.
n/a 3.5 No change
Notes:
(1) Maximum Floor Area Ratio shall be increased by 0. 5:1 for projects in which at 10% of all units contain three or more bedrooms.
Incentive for
family housing
The zoning changes effective Jan. 2024
allowed for building height up to 60 ft.
No further changes are proposed as
part of these HIP modifications
7 (2) The use of transferable development rights under Section 18.18.080 shall not ca use the site to exceed an FAR of 3.0.
(f) Review Process
Housing Development Projects that comply with objective design standards pursuant to Chapter 18.24 (Contextual Design Criteria and Ob jective Design Standards) shall be subject to streamlined review pursuant to Section 18.77. 073. All other projects shall be subject to architectural review as provid ed in Section 18.76.020. Projects shall not be subject to the requirements of site and design review in Chapter 18.30(G). //
//
SECTION 3. Section 18.14.040 (Affordable Housing Incentive Program) of Chapter 18.14 (Housing Incentives) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended to read as follows (changes from Chapter 18.32 shown temporarily for reference only):
(a) 18.32.010 Specific Purpose
The affordable housing incentive program is intended to promote the development of 100% affordable rental housing projects located within one-half mile of a major transit stop or one-quarter mile of a high-quality transit corridor, as defined in subdivision (b) of Section 21155 of the Public Resources Code, by providing flexible development standards, and modifying the allowed uses, and streamlining the project review process allowed in the commercial districts and subdistricts.
(b) 18.32.20 Applicability of Regulations and Affordable Housing Requirement The affordable housing incentive program shall apply to 100% affordable housing projects in the following zoning districts or locations:
(1) Housing Element Opportunity Sites listed in Appendix D of the Housing Element; or (2) Pproperties located within one-half mile of a major transit stop or one-quarter mile of a high-quality transit corridor and zoned CD, CN, CS, and CC, set forth in Chapters
18.16 and 18.18 of this Title, in accord with Chapter 18.08 and Chapter 18.80, but excluding the Town and Country Village Shopping Center, Midtown Shopping Center, and Charleston Shopping Center (unless otherwise allowed by subsection (i). (3) Sites eligible for the Housing Incentive Program pursuant to Section 18.14.030(b).
Procedures
Implements Program 3.4A to
allow one study session with
the ARB if a project meets
objective standards. Based on
existing AHIP review process.
Generalized in order
to capture addition of
residential district
and Housing Element
opportunity sites
outside of transit
areas
Expanded applicability consistent
with Program 3.3A. Relocated
transit statement from purpose
statement above. Major transit
definition is now in “definitions”
section below.
8 The regulations established by this chapter shall apply for 100% affordable housing projects in lieu of the uses allowed and development standards and procedures applied in the underlying district. A property owner may elect to use the site consistent with the underlying zoning district, in which case the applicable regulations in Chapters 18.16 and
18.18 for the commercial districts shall apply.
(a) The affordable housing incentive program provides flexibility in development standards that allow for a density increase that would in most cases exceed density bonuses under state density bonus law, (Government Code Section 65915). Therefore, a project applicant may utilize the affordable housing incentive program and the provisions of this chaptersection as an alternative to use of the state density bonus law implemented through Chapter 18.15 (Density Bonus) of this Title, but may not utilize both the affordable housing incentive program and state density bonuses law. If an applicant utilizes state density bonus law, the regulations in this section shall not apply. in Chapters 18.16 and 18.18 for the applicable underlying commercial zoning district, including as modified by Chapter
18.14.020, shall apply.
(c) 18.32.030 Definitions
For purposes of this chapter, the following definitions shall apply. (1) (a) "100% affordable housing project" means a multiple-family housing project consisting entirely of for-rent affordable units, as defined in Section 16.65.020 of this code, except for a building manager's unit, and available only to households with income levels at or below 120% of the area median income for Santa Clara County, as defined in Chapter 16.65, and where the average monthly rent, inclusive of a reasonable utilities allowance, does not exceed one-twelfth of 30% of the area median income (100% AMI) for the appropriate household size. (1)(2) “Major transit stop” and “high-quality transit corridor” as defined in subdivision (b) of Section 21155 of the Public Resources Code.
18.32.040 (Reserved)
(d) 18.32.050 Review Process
Housing Development Projects that comply with objective design standards pursuant to Chapter 18.24 (Contextual Design Criteria and Objective Design Standards) shall be subject to streamlined review pursuant to Section 18.77.073 (Streamlined Housing Development Project Review). All other projects shall be subject to architectural review as provided in Section 18.76.020. Projects shall not be subject to the requirements of site and design review in Chapter 18.30(G).
(e) 18.32.060 Conformance to Other Combining Districts and Retail Preservation Implements 3.3D
9 The following requirements shall apply to projects in the AH affordable housing incentive program:
(1) (a) Where applicable, the requirements of Chapter 18.30(A) (Retail Shopping (R) Combining District Regulations), Chapter 18.30(B) (Pedestrian Shopping (P) Combining District Regulations), and Chapter 18.30(C) (Ground Floor (GF) Combining District Regulations), and Pedestrian Shopping (P) Combining Districts shall apply. (2) (b) Where applicable, the retail preservation requirements of Section 18.40.180 shall apply except as provided below.
(2)(3) Projects shall not be subject to the requirements of site and design review in Chapter 18.30(G).
(1) Waivers and adjustments
(A) Except in the R or GF combining districts, the City Council shall have the authority to reduce or waive the amount of retail or retail like gross floor area required in Section
18.40.180 for any 100% affordable housing project if the City Council determines that it would be in the public interest. Any such reduction or waiver shall not be subject to the waiver and adjustments requirements in Section 18.40.180(c). In the R and GF combining districts, any reduction or waiver in retail or retail like gross floor area shall remain subject to the requirements of Section 18.40.180(c) or the combining district as applicable. (B) The City Council shall have the authority to modify retail parking requirements associated with a 100% affordable housing project that also requires ground floor retail. (f) 18.32.070 Permitted Uses
The following uses shall be permitted in to use the AH affordable housing incentive program:
(1) (a) 100% affordable housing projects;
(2) (b) In conjunction with a 100% affordable housing project, any uses permitted in the underlying district, provided the uses are limited to the ground floor:. (A) Business or trade school.
(B) Adult day care home.
(C) Office less than 5,000 square feet when deed-restricted for use by a not-for- profit organization.
(A)(D) Any uses permitted in the underlying district
(g) 18.32.080 Conditional Uses
The following uses may be permitted in All uses conditionally permitted in the applicable underlying zoning district may be established in a project utilizing the AH affordable housing incentive program: (1) in conjunction with an 100% affordable housing project;, (2) subject to issuance of a conditional use permit in accord with Chapter 18.76 (Permits and This is redundant
with 18.40.180
Redundant. Ch. 18.52
already outlines parking
reduction process.
10 Approvals);, and (3) provided that the uses are limited to the ground floor.:
(a) Business or trade school.
(b) Adult day care home.
(c) Office less than 5,000 square feet when deed-restricted for use by a not-for-profit organization.
(d) All other uses conditionally permitted in the applicable underlying zoning district. (h) 18.32.090 Development Standards
The following development standards shall apply to projects subject to the AH affordable housing incentive program in lieu of the development standards for the underlying zoning district, except where noted below:
Table 1
Development Standards
AH Incentive Program(1)
Minimum Site Specifications Subject to regulations in:
Site Area (ft 2)
None required
Site Width (ft)
Site Depth (ft)
Minimum Setbacks
Setback lines imposed by a
special setback map
pursuant to Chapter 20.08
of this code may or
imposed to create required
effective sidewalk widths
apply
Front Yard (ft) Same as underlying district
or 10 ft. (whichever is less)
Rear Yard (ft) Same as underlying district
Rear Yard abutting residential
zoning district (ft)
Same as underlying district
Interior Side Yard if abutting
residential zoning district (ft)
Same as underlying district
Street Side Yard (ft) Same as underlying district
or 8 ft. (whichever is less)
Build-to-Lines Same as underlying district
Permitted Setback Encroachments Same as underlying district Changes follow Program 3.3B to increase FAR
(except on R-1 opportunity sites), increase
height limit for <60% of AMI projects, reduce
parking requirements, and other changes to
make the 2.4 FAR achievable.
11 Maximum Site Coverage None Required
Minimum Landscape/Open Space
Coverage
20%(2)
Minimum Usable Open Space
25 sq ft per unit for 5 or
fewer units(2), 50 sq ft per
unit for 6
units or more (2)
Maximum Height (ft)
General Standard (Projects income
restricted <120% of AMI)
50'(4)
Lower Income Standard (Projects
income restricted <60% of AMI)
60’(3)(4)
Portions of a site within 50 ft of a
residential district (other than an
RM-40 or PC zone) R1, R-2, RMD,
RM-20, or RM-30 zoned property
35'
(3)(4) (5)
18.08.030
Daylight Plane for lot lines
abutting a low density residential
district (RE, R1, NV-R1, R2, NV-R2,
RMD)one or more residential
zoning districts
Daylight plane height and
slope shall be identical to
those of the most restrictive
residential zoning district
abutting the lot line
Unless the underlying
zoning district standard is
more permissive, the
daylight plane shall be as
follows:
Initial height: 16 feet,
measured at the property
line
Slope: 45 degrees
Maximum Residential
Density (net)
None Required(3)
Maximum Residential Floor
Area Ratio (FAR) - Residential
Portion of a Project
2.0:1 2.4:1(3)
Maximum Non-Residential
FAR
0.4:1
Maximum Total FAR 2.4:1(3)
Currently, initial height is
10 feet adjacent to RM zones
and R1 (side yard). R1 (rear
yard) is already measured
at 16 feet. This increase
allows for a second story at
the shared property line
with a low density residential
district only.
12 Minimum Vehicle Parking
None, within one-half mile
of a major transit stop or
one-quarter mile of a high-
quality transit corridor.
0.5 per unit, all other
locations.
0.75 per unit
The Director may modify this
standard based on findings
from a parking study that
show fewer spaces are
needed for the project.
The required parking ratio
for special needs housing
units, as defined in Section
51312 of the Health and
Safety Code shall not exceed
0.3 spaces per unit.
Adjustments to the
required ratios shall be
considered per Chapter
18.52 (Parking).
For Commercial Uses, See
Chapters 18.52 and 18.54
(Parking).
TDM Plan
A transportation demand
management (TDM) plan
shall be required pursuant to
Section 18.52.050(d) and
associated administrative
guidelines
18.52.050(d)
Notes:
(1) These developments shall be designed and constructed in compliance with the objective design standards in Section 18.24 and. Developments that elect to deviate from one or more objective standards in Chapter 18.24 shall meet the performance criteria, general standards, and exceptions outlined in Chapter 18.2318.40. Developments that elect to deviate from one or more objective standards in Chapter 18.24 shall, as well as meet the context-based design criteria outlined in Section 18.13.060 for residential-only projects and projects in residential, public facilities, and office, research, and manufacturing zones, Section
18.16.090 for mixed use projects in the CN, CC, and CS districts, and Section 18.18.110 for mixed use projects in the CD district, provided that more restrictive regulations may be recommended by the architectural review board and approved by the director of planning and community environment, pursuant to Section 18.76.020. (2) Landscape coverage is the total area of the site covered with landscaping as defined in Chapter 18.04. For the purposes of this Chapter 18.32, areas provided for usable open space may be counted towards the landscape site coverage requirement. Landscape and open space areas may be located on or above the ground level, and may include balconies, terraces, and No parking
requirement
near transit is
consistent
with SB35,
State Density
Bonus Law
and AB2097,
except this
code refers
to major
transit as
defined above
In other
locations, ratio
is reduced per
Program 3.3B
This deletion is
called out for
the HIP in
Program 3.4
and not the
AHIP in
Program 3.3,
but the
sentiment is the
same. Especially
since this clause
refers to
compliance with
the (subjective)
context-based
design criteria.
13 rooftop gardens.
(3) Except on R-1 opportunity sites (owned by faith-based institutions) where maximum FAR of 2.0; maximum residential density of 50 du/ac; and maximum building height of 50 feet apply, regardless of income level.
(4) Mixed-use projects that include ground-floor retail or retail-like uses shall receive an additional 5 feet of building height.
(345) Distance shall be measured from the property line of the subject site. The Planning Director may recommend a waiver from the transitional height standard.
SECTION 4. Section 18.13.040 (Development Standards) of Chapter 18.13 (Multiple Family Residential (RM-20, RM-30 AND RM-40) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through; unchanged text omitted by bracketed ellipses):
18.13.040 Development Standards
(a) Site Specifications, Building Size and Bulk, and Residential Density The site development regulations in Table 2 shall apply in the multiple-family residence districts, provided that more restrictive regulations may be recommended by the Architectural Review Board and approved by the Director of Planning and Development Services, pursuant to the regulations set forth in Chapter 18.76, and the objective design standards set forth in Chapter 18.24. Except that s Sites designated as Housing Element Opportunity Sites shall meet the development standards specified in Chapter Section
18.14.020 and projects utilizing the Housing Incentive Program or Affordable Housing Incentive Program shall meet the development standards specified in Sections 18.14.030 and 18.14.040, respectively.
[. . .]
SECTION 5. Section 18.16.060 (Development Standard s) of Chapter 18.16 (Neighborhood, Community, and Service Commercial (CN, CC and CS) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck- through; unchanged text omitted by bracketed ellipses)::
18.16.060 Development Standards
[. . .]
(b) Mixed Use and Residential
Table 4 specifies the development standards for new residential mixed use developments and residential developments. These developments shall be designed and constructed in compliance with the following requirements and the objective design standards in Chapter Modified
standards for
R-1 zoned faith
based sites
Incentive for
retail/mixed
use buildings
Cross-reference
for RM Zones
14 18.24, except that sites designated as Hous ing Element Opportunity Sites shall meet the development standards as modified in Chapte r 18.14.020 and projects utilizing the Housing Incentive Program or Affordab le Housing Incentive Program shall meet the development standards specified in Sections 18.14.03 0 and 18.14.040, respectively. Non-Housing Development Projects and Housing Development Projects that el ect to deviate from one or more objective standards in Chapter 18.24 shall meet the context-based design criteria outlined in Section 18.16.090, provided th at more restrictive regulations may be recommended by the architectural review board and approved by the director of planning and development services, pursuant to Section 18.76.020.
[. . .]
(c) Exclusively Residential Uses
Exclusively residential uses are generally proh ibited in the CN, CS, CC(2) and CC zone districts, except on housing inventory sites identified in the Housing Element, subject to the standards in Section 18.16.060(b), and on CS and CN sites on El Cami no Real and CC(2) sites, subject to the following.
(1) On CS and CN sites on El Camino Real and on CC(2) sites, wh ere the retail shopping (R) combining district or the retail preservation provisions of Section 18.40.180 do not apply, exclusively residential uses ar e allowed subject to the standards in Section 18.16.060(b) and the following additional requirements:
(A) Residential units shall not be permitted on the ground-floor of development fronting on El Camino Real unless set back a minimum of 15 feet from the property line or the 12-foot effective sidewalk setb ack along the El Camino Real frontage, whichever is greater; for projects on Ho using opportunity sites, or those utilizing the Housing Incentive Program or Affordable Housing Incentive Program, these setbacks may be modified by the standards in Chapter 18.14. Common areas, such as lobbies, stoops, community rooms, a nd work-out spaces with windows and architectural detail are permitted on the ground-floor El Camino Real frontage. (B) Parking shall be located behind build ings or below grade, or, if infeasible, screened by landscaping, low walls, or garage structures with architectural detail. (C) Combining district use regulations and design and development standards shall not apply to exclusively residential projects on Housing Element opportunity sites designated to accommodate lower income households, and may be limited for sites utilizing the Housing Incentive Program or Affordable Housing Incentive Program. See Section 18.14.020 Chapter 18.14 for details.
[. . .]
(k) Housing Incentive Program Reserved
(1) The Director may waive the residential floor area ratio (FAR) limit and the maximum site coverage requirement for a project that is reviewed by the Architectural Review Board, if the Director finds that the project with such waiver or waivers is consistent with the required architectural review findings in Section 18.76.020. The Director may only Cross-reference
for commercial
zones
Existing HIP standards are
being replaced with the code
section above
15 waive these development standards in the fo llowing areas and subject to the following restrictions:
(A) For an exclusively residential or mixed-use project in the CC(2) zone or on CN or CS zoned sites on El Camino Real. In no event shall the Director approve a commercial FAR that exceeds the standard in Table 4 of Section 18.16.060(b) or a total FAR (including both re sidential and commercial FAR) in excess of 2.0 in the CC(2) zone or 1.5 in the CN or CS zone.
(B) For an exclusively residential or mi xed-use project on CS zoned sites on San Antonio Road between Middlefield Road a nd East Charleston Road. In no event shall the Director approve a commercial FAR that exceeds the standard in Table 4 of Section 18.16.060(b) or a total FAR (including both residential and commercial FAR) in excess of 2.0.
(2) The Director may waive any developmen t standard including parking for a project that is reviewed by the Architectural Review Board, if the Director finds that the project with such waiver or waivers is consistent with the required architectural review findings in Section 18.76.020. The Director may only waive these development standards in the following areas and subject to the following restrictions:
(A) For a 100% affordable housing project in the CC(2) zone or on CN or CS zoned sites on El Camino Real;
(B) For a 100% affordable housing project on CS zoned sites on San Antonio Road between Middlefield Road and East Charleston Road.
(C) In no event shall the Director approve development standards more permissive than the standards applicab le to the Affordable Housing (AH) Combining District in Chapter 18.30(J). A "100% affordable housing project" as used herein means a multiple-family housing or mixed-use project in which the residential component consists entirely of affordable units, as defined in Section
16.65.020, available only to households wi th income levels at or below 120% of the area median income, as defined in Section 16.65.020, and where the average household income does not exceed 60% of the area median income level, except for a building manager's unit.
(3) This program is a local alternative to the state density bonus law, and therefore, a project utilizing this program shall not be eligible for a density bonus under Chapter 18.15 (Residential Density Bonus).
[. . .]
SECTION 6. Section 18.18.060 (Development Standards) of Chapter 18.18 (Downtown Commercial (CD) District) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through; unchanged text omitted by bracketed ellipses):
18.18.060 Development Standards
[. . .]
16 (b) Mixed Use and Residential
Table 3 specifies the development standards for new residential mixed use developments and residential developments. Housing Development Projects shall be designed and constructed in compliance with the following requirements and the objective design standards in Chapter 18.24, except that sites designated as Housing Element Opportunity Sites shall meet the development standards as modified in Chapter 18.14.020 and projects utilizing the Housing Incentive Program or Affordable Housing Incentive Program shall meet the development standards specified in Sections 18.14.030 and 18.14.040, respectively.
Non- Housing Development Projects and Housing Development Projects that elect to deviate from one or more objective standards in Chapter 18.24 shall meet context-based design criteria outlines in Section 18.18.110, provided that more restrictive regulations may be recommended by the architectural review board and approved by the director of planning and development services, pursuant to Section 18.76.020:
[. . .]
(l) Reserved Housing Incentive Program
(1) For an exclusively residential or residential mixed-use project in the CD-C zone, the Director may waive the residential floor area ratio (FAR) limit after the project with the proposed waiver is reviewed by the Architectural Review Board, if the Director finds that the project exceeding the FAR standard is consistent with the required architectural review findings. In no event shall the Director approve a commercial FAR in excess of 1.0 or a total FAR (including both residential and commercial FAR) in excess of 3.0. Nor shall the use of transferable development rights under Section 18.18.080 be allowed to cause the site to exceed a FAR of 3.0.
(2) For a 100% affordable housing project in the CD-C zone, the Director may waive any development standard including parking after the project with the proposed waiver or waivers is reviewed by the Architectural Review Board, if the Director finds that a project with such waiver or waivers is consistent with the required architectural review findings. In no event shall the Director approve a FAR in excess of 3.0 or approve other development standards more permissive than the standards applicable to the Affordable Housing (AH) Combining District in Chapter 18.30(J). A "100% affordable housing project" as used herein means a multiple-family housing or mixed-use project in which the residential component consists entirely of affordable units, as defined in Section 16.65.020 of this code, available only to households with income levels at or below 120% of the area median income, as defined in Section 16.65.020, and where the average household income does not exceed 60% of the area median income level, except for a building manager's unit.
(3) This program is a local alternative to the state density bonus law, and therefore, a project utilizing this program shall not be eligible for a density bonus under Chapter
18.15 (Residential Density Bonus).
Existing HIP standards are
being replaced with the code
section above
Cross- reference
for commercial
CD(C) zones
17 [. . .]
SECTION 7. Section 18.20.040 (Site Development Standards) of Chapter 18.20 (Office, Research, and Manufacturing (MOR, ROLM, RP and GM) Distri cts) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through; unchanged text omitted by bracketed ellipses):
18.20.040 Site Development Standards
[. . .]
(b) Development Standards for Exclusively Residential Uses Residential uses shall be permitted in the MO R, RP, RP(5), ROLM, ROLM(E), and GM zoning districts, subject to the following criteria.
[. . .]
(6) ROLM District. All multi-family develo pment in the ROLM zoning district shall be permitted subject to the provisions above in 18.20.040(b)(2), approval of a conditional use permit, and compliance with the develo pment standards prescribed for the RM-30 zoning district, except for sites designated as Housing Element Opportunity Sites or Focus Areas, which are regulated by Chapter 18.14.020. Sites designated as Housing Element Opportunity Sites or Focus Areas may also elect to utilize the Housing Incentive Program or Affordable Housing Incentive Program, in which case they shall meet the development standards specified in Sections 18.14.030 and 18.14.040, respectively. (7) GM District. All residential developmen t is prohibited in the GM zoning district, except for sites designated as Housing Elem ent Opportunity Sites or Focus Areas, which are regulated by Chapter 18.14.020. Sites designated as Housing Element Opportunity Sites or Focus Areas may also elect to utilize the Housing Incentive Program or Affordable Housing Incentive Program, in which case they shall meet the development standards specified in Sections 18.14.030 and 18.14.040, respectively. (8) Combining Districts. Combining district use regulations and design and development standards shall not apply to exclusively residential projects on Housing Element opportunity sites designated to accommod ate lower income households, and may be limited for sites utilizing the Housing Incentiv e Program or Affordable Housing Incentive Program. See Section 18.14.020 Chapter 18.14 for details.
(c) Development Standards for Mixed (Residential and Nonresidential) Uses in the MOR, ROLM, ROLM(E), RP, and RP(5) Zoning Districts
Mixed (residential and nonresidential) uses shall be permitted in the MOR, ROLM, ROLM(E), RP, and RP(5) zoning districts, subject to the following criteria:
(1) It is the intent of these provisions th at a compatible transition be provided from lower density residential zones to higher density residential, non-residential, or mixed use zones. The Village Residential development type should be evaluated for use in transition Cross- reference for commercial
office and research zones
18 areas and will provide the greatest flexibility to provide a mix of residence types compatible with adjacent neighborhoods.
(2) New sensitive receptor land uses sha ll not be permitted within 300 feet of a Hazardous Materials Tier 2 or Tier 3 use. Existing sensitive receptors shall be permitted to remain, consistent with the provisions of Chapter 18.70 (Nonconforming Uses and Noncomplying Facilities).
(3) ROLM(E) District. Mixed (residential and nonresidential) development in the ROLM(E) zoning district shall be permitted, subject to the provisions above in 18.20.040(c)(2), approval of a conditional use permit, dete rmination that the nonresidential use is allowable in the district and that the residential component of the development complies with the development standards prescribed for the RM-20 zoning district. The maximum floor area ratio (FAR) for mixed use development is 0.3 to 1. (4) ROLM District. Mixed (residential a nd nonresidential) deve lopment in the ROLM zoning district shall be permitted, subject to the provisions above in 18.20.040(c)(2), approval of a conditional use permit, dete rmination that the nonresidential use is allowable in the district and that the residential component of the development complies with the development standards prescribed for the RM-30 zoning district. The maximum floor area ratio (FAR) for mixed use development is 0.4 to 1. Except that s Sites designated as Housing Element Opportunity Sites or Focus Areas shall meet the development standards specified in Chapter 18.14.020 and projects utilizing the Housing Incentive Program or Affordable Housing Incentive Program shall meet the development standards specified in Sections 18.14.030 and 18.14.040, respectively. (5) GM District. Mixed use (residential and nonresidential) development is prohibited in the GM zoning district, except for sites designated as Housing Element Opportunity Sites or Focus Areas, which are regulated by Chapter 18.14.020. Sites designated as Housing Element Opportunity Sites or Focus Areas may also elect to utilize the Housing Incentive Program or Affordable Housing Incentive Prog ram, in which case they shall meet the development standards specified in Sections 18.14.030 and 18.14.040, respectively.
In computing residential densities for mixed (residential and nonresidential) uses, the density calculation for the residential use shall be based on the entire site, including the nonresidential portion of the site.
[. . .]
SECTION 8. Chapter 18.32 (Affordable Housing Incentive Program) of Title 18 (Zoning) of the Palo Alto Municipal Code is deleted in its entirety.
SECTION 9. Section 18.40.180 (Retail Preservation) of Chapter 18.40 (General Standards and Exceptions) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; and unchanged text omitted by bracketed ellipses):
18.40.180 Retail Preservation
[. . .]
19 (c) Waivers and Adjustments; and Exemptions.
[. . .]
(4) Exemptions. The following uses shall be exempt or partially exempt from the provisions of this Section 18.40.180, as provided below:
(A) A 100% affordable housing project not within the Ground Floor (GF) and/or Retail (R) combining districts nor El Camino Real Node area as depicted in Figure 5on a site abutting El Camino Real. A "100% affordable housing project" as used herein shall have the same meaning as provided in Section 18.14.040(c).means a multiple-family housing project consisting entirely of affordable units, as defined in Section 16.65.020 of this code, available only to households with income levels at or below 120% of the area median income, as defined in Chapter 16.65, except for a building manager's unit.
(B) A 100% affordable housing project on a site abutting El Camino Real in the CN and CS zone districts outside the Retail (R) combining district. A "100% affordable housing project" as used herein means a multiple-family housing project consisting entirely of affordable units, as defined in Section 16.65.020 of this code, available only to households with income levels at or below 120% of the area median income, as defined in Chapter 16.65, and where the average household income does not exceed 80% of the area median income level, except for a building manager's unit.
(B) A residential project located on a Housing Element Opportunity Site listed in Appendix D of the Housing Element, except for projects located within an El Camino Real Node area, as depicted in Figure 5, that utilize the Housing Incentive Program to exceed the realistic capacity estimates identified in Appendix D of the Housing Element.
(C) A high-density residential or mixed-use project in the CS zone district, but not within the Ground Floor (GF) or Retail (R) combining districts, shall be required to replace only up to 1,500 square feet of an existing retail or retail-like use and shall be exempt from minimum vehicle parking requirements pursuant to Chapter 18.52 (Table 1) for this retail or retail-like floor area. For the purposes of this partial exemption, high-density shall mean 30 or more dwelling units per acre. This reduction in retail square footage and minimum vehicle parking requirements shall not apply for a site within the Ground Floor (GF) or Retail (R) combining districts, or within an El Camino Real Retail Node area, unless the site is a Housing Element opportunity site, as depicted in Figure 5 (D) The Director shall maintain and update the El Camino Real Node map in Figure 5.
Figure 5: El Camino Real Retail Node Areas
Narrows
exemption from
RPO to exclude
El Camino sites
outside of the
retail nodes per
Program 3.4C
Standardize
100% affordable
housing definition
Remove redundancy
given changes above
Added exemption from RPO
for Opportunity Sites per
Program 3.4C. None of the
Housing Sites are on (GF)
or (R) designated sites, so
no exemption required,
but there are Opportunity Sites
within these nodes on El
Camino. Opportunity
sites are allowed to develop
as 100% housing, so this code
only requires retail above the
base realistic capacity listed in
the Housing Element.
Add exemption
per Program
3.4C and offer
incentives to
support flexibility
in ground floor
uses and program
20 SECTION 10. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase th ereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid.
SECTION 11. In accordance with the California Environmental Quality Act (CEQA), the City prepared an Addendum to the 2017 Comprehensive Plan Environm ental Impact Report (EIR), analyzing the potential environmental impacts of the 2023-2031 Housing Element. On May 8, 2023, the City Council adopted Resolution No. 10107, and on December 18, 2023, the City Council approved a Revised Adde ndum, finding that the Addendum , as revised, and the 2017 EIR adequately analyzed the environmental im pacts of the Housing Element, including the Programs implemented by this ordinance.
SECTION 12 . This Ordinance shall be effective on the thirty-first day after the date of its adoption.
INTRODUCE
21 D: PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIO
NS: ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
Assistant City Attorney City Manager
Director of Planning and
Development Services