City Council
Supplemental Report
From: Jonathan Lait, Planning and Development Services Director Meeting Date: June 9, 2025
Item Number: AA1
Report #:2506-4784
TITLE
LEGISLATIVE. Adoption of a Temporary, Emergency Ordinance Amending Title 18 and Title 21 to Reflect Changes in State Law in Accordance with Senate Bill 1123 and Related Direction to Staff Regarding Updates to the Land Use Element of the Comprehensive Plan. CEQA Status: Exempt Pursuant to Government Code Sections 65852.28 and 66499.41.
RECOMMENDATION
Staff recommends the City Council:
1. Adopt the attached ordinance (Attachment A) by a four-fifths majority (six affirmative votes), temporarily updating Title 18 and Title 21 of the Municipal Code in accordance with recent changes in State law.
2. Direct staff to update the Land Use Element of the Comprehensive Plan to more specifically differentiate single-family, low-, medium-, and high-density residential land use designations.
BACKGROUND
Staff are providing this supplemental report to provide: (a) additional context regarding the prospective applicant under SB 1123 and potential implications of the proposed ordinance on that project; and (b) additional information on procedures regarding a temporary emergency ordinance.
Potential Impacts of Allowing or Disallowing (J)ADUs in SB 1123 Projects As previously noted, staff have been in contact with a prospective applicant about a project utilizing SB 1123. The proposed site is just over one acre in the RE (Residential Estate) district at 4103 Old Trace Road. Because the state law requires a minimum density of 20 dwelling unit per acre, projects on sites of this size may only be feasible if the City Council permits at least one minimum (J)ADU per lot as part of the proposed ordinance. This property is one of approximately 20 vacant parcels in Palo Alto zoned for single-family use that staff believe could qualify for SB 1123.
If the Council permits (J)ADUs in an SB 1123 ordinance, the prospective applicant has indicated that it will likely pursue an SB 1123 project with 10 primary units and 10 (J)ADUs due to the benefits of the streamlined, ministerial process. It is not clear whether the project would propose JADUs, attached ADUs, or detached ADUs, which would each have different implications for size and massing on the site. The Council may wish to specify what types of (J)ADU would be permitted as part of the ordinance. For example, if the Council allowed only JADUs, this would create more units while minimizing the impact in terms of size and number of structures.
If the Council determines not to permit any (J)ADUs under SB 1123, the project will not be able to proceed under SB 1123. In that event, the prospective applicant has indicated that they will likely pursue a project with 8 primary units on the site by utilizing State Density Bonus Law (SDBL). After the project is completed, future owners would be able to construct multiple ADUs pursuant to state ADU law and the City’s ADU ordinance. In addition, unlike a project under SB 1123, a project utilizing SDBL would not be constrained by the City’s design or development standards (including height, setbacks, and FAR), due to the ability to request waivers.
In summary, the Council’s decision on whether to permit (J)ADUs in the SB 1123 ordinance will have implications for both: (a) what is permitted for approximately 20 vacant single-family parcels in Palo Alto that may be eligible to utilize SB 1123; and (b) a prospective project at 4103 Old Trace Road, which will either proceed as a SDBL project (with 8 primary units and possible additional (J)ADUs to be added later) or, if the Council permits ADUs, an SB 1123 project (with 10 primary units and 10 (J)ADUs).
Procedures Regarding Temporary Emergency Ordinances
An emergency ordinance, which is adopted with six affirmative votes, is effective immediately upon adoption at the first reading. (In contrast, a regular ordinance is effective 30 days after a second reading.)
The Palo Alto Municipal Code generally requires Planning Commission review of ordinances amending local zoning codes. Under the Code, however, a temporary ordinance may be adopted in advance of Planning Commission review.
SB 1123 becomes available to project applicants on July 1, 2025. To be effective, local standards implementing SB 1123 must be effective before that date. If the Council does not adopt a temporary emergency ordinance in June, SB 1123 will be available to project applicants without local standards, such as design standards and potential restrictions on (J)ADUs. In the absence of an ordinance, SB 1123 projects would be permitted to construct (J)ADUs in accordance with state law and the Zoning Code (1 detached ADU, 1 attached ADU, and 1 JADU per lot).
APPROVED BY:
Jonathan Lait, Planning and Development Services Director