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Implementation of
Housing Element Policies:
Zoning Code Amendments and
Update of the Below Market
Rate (Inclusionary) Program
City Council
June 16, 2025
Steve Golden, Principal Planner
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San Mateo Housing Element (2023-2031)
• Adopted on May 20, 2024, certified by the State
Housing and Community Development Department
(HCD) on July 23, 2024
• Five goals to support compliance with state law and to achieve the City’s RHNA – Supporting Production,
Preservation, Protection, Promotion, and Affirmatively
Furthering Fair Housing
• Includes 53 policies with 150 implementation actions
• Numerous Housing Element policies and programs that
require Zoning Code Amendments and policy
amendments
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Housing Element Implementation
Zoning Code Amendments Completed
Amended the Zoning Code to allow residential projects with up to 25 units to be approved administratively. (Policy H1.6) – November 2023 Adopted Objective Design Standards for multi-family residential projects and mixed-use projects with a residential component. (Policy H1.8) – November 2023 Amended the Zoning Code to establish a By-Right designation for housing sites reused from prior Housing Elements for housing projects that propose a minimum of 20% affordable units. Zoning for these sites must be at least 30 units/acre to meet default density requirements for lower-income households per Gov. Code Section 65583.2(c). (Policy H1.10) – July 2024 Amended the Zoning Code to: implement Housing Element Implementation Actions/Programs (variety) and State Law Compliance; increase Zoning Administrator threshold for residential project approval to 99 units; code sections for General Plan and Measure T consistency (Variety of Policies) – April 2025
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Proposed Zoning Code Amendments
I. Streamlining the Development
Review Process (Policy H1.6)
II. Minimum Densities in Mixed-Use
Residential Development Projects
(Policy H1.9)
III. Updates to City Below Market-
Rate (Inclusionary) Program
(Policy H1.3)
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I. Streamlining the Development Review Process
Establish an appeals process for a project ‘incomplete’ determination subject to the review and determination of the Planning Commission within a designated timeline (Policy H1.6) (HE Commitment) (Govt Code) • Align with the Permit Streamlining Act (Govt Code Section 65943) • An appeal for an incomplete determination shall be submitted within 14 days.
Planning Commission shall make a final written determination on the appeal not later than 60 calendar days after receipt of the applicant’s written appeal.
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I. Streamlining the Development Review Process
Amend the zoning code to allow the Zoning Administrator to approve up to two extensions, each for up to 2 years (currently only one extension for up to two years is allowed) (Policy H1.6)
• Current code allows 2 years from Planning Application approval to submit Building Permit + 6 months to issue permit (a total of 2.5 years) + one 2- year extension (4.5 years total)
• The proposed change, could allow up to 6.5 years from Planning Application Approval with initial approval and all extensions to issue Building Permit
• Propose to remove language that required automatic extension of the Planning Application Approval when associated tentative subdivision map is extended
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I. Streamlining the Development Review Process
Modify the requirement for City Council approval of development projects over 55 feet in height to only require City Council approval of projects when they exceed the building height limit specified in General Plan 2040 (Policy H1.6) • “Stories” will be further defined with a numeric height as part of the Comprehensive Zoning Update
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II. Minimum Densities in Mixed-Use Residential
Development Projects (Policy H1.9)
Establish minimum densities for mixed-use residential projects based on General Plan 2040 mixed-use land use designations. The recommended densities vary based on the intensity of the mixed-use land use designation and whether the project area is within ½ mile of a Caltrain station. (Policy H1.9) (HE Commitment).
Within ½ Mile from Caltrain Stop Outside of ½ Mile from Caltrain Stop • Densities will be further studied during the Comprehensive Zoning Update project Mixed-Use Low and
Mixed-Use Medium I
30 du/ac
Mixed-Use Medum II
and Mixed-Use High
50 du/ac
Mixed-Use Low 10 du/ac
Mixed-Use Medium I 15 du/ac
Mixed-Use Medum II 30 du/ac
Mixed-Use High 50 du/ac
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II. Minimum Densities in Mixed-Use Residential
Development Projects (Policy H1.9)
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III. Zoning Code Amendments – Updates to City Below
Market-Rate (Inclusionary) Program (Policy H1.3)
Goal of Policy H1.3 is to increase affordable housing production by allowing more compliance options in the City’s Below Market-Rate (Inclusionary) Housing Program and creating incentives through the Density Bonus/Community Benefits Program • Amendments to BMR Program will provide alternatives to the on-site requirement (15% affordable units at lower-income (rental) or moderate-income (for-sale)) • Providing alternatives is supported by state law (Govt. Code 65850(g)) • Current alternative in City’s BMR Program Guidelines is limited to projects where onsite is “economically infeasible”
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III. Zoning Code Amendments – Updates to City Below
Market-Rate (Inclusionary) Program (Policy H1.3)
Comprehensive BMR Program revision in 2026 will allow for additional analysis and further additions/amendments to City’s BMR Policy
Staff researched alternatives used in other jurisdictions – most common include:
• In-Lieu Fees – developer pays fee instead of constructing affordable units • Land Dedication – developer provides land (to City or development partner) for offsite affordable unit construction
• Off-Site Construction – developer builds affordable units offsite • Acquisition and Rehabilitation (of Affordable Units) – developer acquires/rehabs and deed-restricts housing occupied by lower-income households • Developer-Proposed Alternative – varies
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III. Zoning Code Amendments – Updates to City Below
Market-Rate (Inclusionary) Program (Policy H1.3)
Staff recommend an Off-Site Construction Option and Developer-Proposed Alternative Option
1. Off-Site Construction Option
Required City Council findings include:
• Meets or exceeds affordable unit
requirement
• Consistency with the General Plan and
Housing Element
• Viable financing
• Meeting AFFH objectives
• Concurrent occupancy
2. Developer-Proposed Alternative
Required City Council findings include:
• Meets or exceeds affordable housing
requirement
• Consistency with General Plan and Housing
Element
• Viable financing
• Providing greater public benefit than onsite
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III. Zoning Code Amendments – Updates to City Below
Market-Rate (Inclusionary) Program (Policy H1.3)
Code and policy amendments to BMR program to implement offsite construction and developer-proposed alternatives
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PC Recommendations – May 13, 2025
• Recommend that the City Council adopt an Ordinance amending the Zoning Code (Title 27) to:
• Address affordable housing compliance options;
• Development of Off-site Units
• Developer-Proposed Alternative
• Planning application procedures; and
• Minimum densities (dwelling units/acre) for residential mixed-use development projects. • Proposed that staff evaluate a maximum jobs-to-housing ratio for each mixed-use project
(dwelling unit/square-foot of commercial use)
• Recommend that the City Council approve a Resolution to update the City’s Below Market Rate (Inclusionary) Program.
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Recommendations
• Adopt an Ordinance amending the Zoning Code (Title 27) to:
• Address affordable housing compliance options;
• Development of Off-site Units
• Developer-Proposed Alternative
• Planning application procedures; and
• Minimum densities for residential mixed-use development projects. • Approve a Resolution to update the City’s Below Market Rate (Inclusionary) Program.
• Find the Ordinance and Resolution Categorically Exempt per CEQA Guidelines Section 15183, Projects Consistent With A Community Plan Or Zoning
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Thank you
Steve Golden
Principal Planner, Planning Division
[email protected]
Rachel Horst
Manager, Housing Division
[email protected]
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CEQA Evaluation & Public Comments
• Proposed to be Categorically Exempt per CEQA Guidelines Section 15183, Projects Consistent With A Community Plan Or Zoning • Public Notices posted to Newspaper, Planning eNewsletters, and the Planning Division “What’s Happening” webpage
• No public comments received (to-date)
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Housing Element Implementation
Future Zoning Code Amendments
• Amend the City’s ADU Ordinance (Chapter 27.19) to align with current State law and to resolve any inconsistencies identified by HCD. (Policy H1.4)
• Evaluate updates to Zoning Code Standards to support housing production including excluding covered parking and other elements as needed from Floor Area Ratio (FAR) calculation for housing projects with affordable units (Policy H1.7)
• Amend the Zoning Code to reduce off -street parking requirements for residential units and other parking related requirements and make recommendations to reduce or eliminate any other parking related requirements identified as a constraint. (Policy H1.7)