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Agenda Report

San Mateo City Council
September 8, 2026

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Agenda Report
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September 8, 2026
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San Mateo City Council
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 18 Section Name: PUBLIC HEARING Account Number: File ID: 26-11552 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Community Development Department
MEETING DATE: September 08, 2026
SUBJECT: High-Density Mixed-Use and Multi-Family Districts, and Zoning Code Updates — Ordinance Introduction
RECOMMENDATION:

Introduce an Ordinance to make various amendments to Title 27 “Zoning” of the San Mateo Municipal Code to establish four new high density zoning districts consistent with General Plan 2040 and make minor revisions to various sections to update outdated language and correct inconsistencies.

BACKGROUND:

In 2024, the City Council adopted Strive San Mateo General Plan 2040. This General Plan is a strategic document guiding the City’s long-range growth and development through policy. This plan established updated land use designations that respond to state housing requirements and advanced the City’s goals for sustainable, equitable, and transit-oriented development. While the General Plan provides high-level policy direction and outlines overall development intensity, the City’s zoning regulations serve as the primary implementation mechanism by translating these policies into clear and enforceable development standards. The existing zoning regulations do not fully align with or adequately implement the land use designations and development patterns envisioned by the General Plan. Specifically, the current Zoning Code does not allow for the higher-density residential and mixed-use development envisioned by the General Plan through the establishment of the Mixed-Use Medium II, Mixed-Use High, Residential Medium II and Residential High land use designations which allow for densities of up to 130 units per acre and heights of up to eight stories.

The City is currently undertaking a comprehensive update to Title 27 (Zoning Code) of the San Mateo Municipal Code (SMMC), which establishes zoning regulations for San Mateo. This comprehensive update will revise development standards, definitions, and regulatory provisions to modernize the Zoning Code, improve usability, and ensure consistency with the General Plan and applicable state law. The zoning code update is presently in the early stages of development and community engagement, providing the public with opportunities to provide input on how the Zoning Code is updated and/or maintained. Following this phase, staff will work with the City’s consultant, Placeworks, to draft updated standards and regulations. Additional public outreach will occur when the draft update is published and prior to formal public hearings before the Planning Commission and City Council. Staff anticipates that the Comprehensive Zoning Code Update will be completed by mid-2027.

While the Comprehensive Zoning Code Update (CZCU) is underway, it is necessary to establish new zoning districts to align with the General Plan’s higher density adopted land use designations. The proposed Ordinance will create four new zoning districts intended to implement the General Plan’s land use framework by establishing clear and objective standards for permitted uses, development form, and intensity. The proposed districts (MU3, MU4, R6, and R7) are described in greater detail in the Discussion section of this report. Adoption of these districts will ensure regulatory consistency, improve clarity for applicants and the public, and facilitate development that advances the City’s adopted policy objectives.

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It is important to note that the creation of these districts will not result in the automatic rezoning of any existing parcels, and the rezoning of any properties to these new districts will need to take place through a separate developer or city- initiated process. These rezonings may take place through the CZCU or in advance of this update through the entitlement process for individual projects. Prior to any rezonings, staff and applicants may utilize these standards to better understand development expectations and building form associated with the corresponding General Plan land use designations, and to help ensure that projects are consistent with the General Plan. The proposed zone districts correlate to the General Plan’s land use designations as outlined in the table below.

Proposed Zone District General Plan Designation
R6 High Density Multiple Family Residential Residential Medium II (4-6 stories, 51-99 units/acre) R7 High Density Multiple Family Residential Residential High (5-8 stories, 100-130 units/acre) MU3 Medium Density Mixed-Use Mixed-Use Medium II (4-6 stories, 51-99 units/acre) MU4 High Density Mixed-Use Mixed-Use High (5-8 stories, 100-130 units/acre) In addition to the creation of four new zoning districts, the proposed Ordinance will also amend the landscape requirements within the code to exempt 100% affordable developments from required landscaping in-lieu fees as well as propose minor changes to a number of districts throughout the Zoning Code. These minor changes are intended to resolve inconsistencies, remove antiquated language and increase clarity. Detailed descriptions of all of the proposed changes are outlined below.

On June 23, 2026, the Planning Commission held a public hearing to consider the proposed Ordinance. There were two public comments submitted in writing prior to the meeting, which are further described in the public notice and comments section of this report, and one public speaker provided verbal comments at the meeting. The speaker at the meeting identified concerns with the proposed open space ratios within the new zoning districts, proposed buffers from low- density residential, and commercial uses proposed within mixed-use districts. Following the staff presentation and public comments, the Planning Commission engaged in in-depth discussion on multiple aspects of the proposed amendments, including the proposed open space standards, landscaping requirements, floor area ratio (FAR), and proposed building heights. Additional information regarding the discussion on FAR standards is provided in a subsequent section of this agenda report.

Following deliberation and discussion with City Staff, the Planning Commission voted to recommend approval of the proposed Ordinance with no modifications. However, the Commission requested that additional analysis and background information on the development standards in the high-density districts, including building height, FAR and open space, be provided before the draft Zoning Code Update is published. Staff will be bringing these topics back for further input at future study sessions with the Planning Commission and City Council as part of the CZCU process.

DISCUSSION:

Proposed Amendments
The proposed amendments are included in the Proposed Ordinance (Attachment 1). A version with tracked changes to show where edits have been proposed to the existing Code text is included as Attachment 2. A complete summary of each of the proposed changes is discussed below.

New Zone Districts

1. R6 District – High Density Multiple Family Residential The proposed R6 High Density Multiple Family Residential District is intended to implement the Residential Medium II land use designation established by the General Plan. This district is designed to accommodate higher- density multi-family housing in appropriate locations, particularly along major corridors and near mixed-use, employment and commercial areas. Permitted uses within this district will include family day care homes, multi- family dwellings, one-family row dwellings and residential care homes. In order to facilitate higher-density development and meet housing goals, detached single-family dwellings will not be permitted in this district.

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The development standards proposed for the R6 District, summarized in the table below, have been drafted to reduce barriers to multi-family housing while maintaining appropriate site design and livability standards. These regulations are intended to promote compact development, support a range of multi-family housing types, and provide flexibility for developers to respond to site-specific constraints. By allowing increased development intensity, the R6 District, along with the other new districts outlined below, will play a key role in helping the City meet its state-mandated housing requirements and Regional Housing Needs Allocation (RHNA) obligations.

Development Standard R6 Proposed Requirement
Maximum Density 99 dwelling units per acre
Floor Area Ratio 3.5
Maximum Height 6 Stories / 75 feet
Front Yard Setback None Required
Side Yard Setback None Required
Rear Yard Setback Five Feet
Buffers Adjacent to R1 or R2 Districts Side: 10 ft
Rear: 15 ft
In addition to the standards listed above, staff is proposing to establish on-site open space standards to require that higher-density residential projects provide adequate outdoor amenities for residents. These requirements are intended to balance increased density with quality-of-life considerations, recognizing the importance of usable open space in multi-family developments. Projects within the R6 District would be required to provide either a minimum of 50 square feet of private usable open space per dwelling unit or a minimum of 75 square feet of common usable open space per unit.

To provide additional design flexibility, applicants may satisfy the open space requirement through a combination of private and common usable open space. In such cases, a minimum of 30 square feet of private usable open space per unit is required to promote accessibility and ensure that all residents have some direct access to outdoor space. The remaining open space obligation can be met through common usable open space equal to at least 150 percent of the difference between the private open space requirement and the amount of private open space provided. This approach incentivizes the provision of shared amenities such as courtyards, rooftop decks, and landscaped gathering areas, while still maintaining a baseline level of private open space for individual units.

For example, a development that proposes 30 square feet of private usable open space per unit would be required to provide an additional 30 square feet of common usable open space per unit to meet the overall open space requirement. This flexible framework allows a variety of project designs while ensuring that residents of higher- density developments have access to meaningful outdoor space. As currently proposed, these exact open space requirements will also be reflected across the R7, MU3 and MU4 districts.

2. R7 District – High Density Multiple Family Residential The proposed R7 High Density Multiple Family Residential District is intended to implement the Residential High land use designation established by the General Plan. The R7 District is designed to accommodate the City’s highest-density residential development in locations with the greatest access to transit, services, employment centers, and commercial uses. This district supports compact, urban-scale development and plays a critical role in maximizing housing capacity in areas best suited to absorb increased residential intensity.

The development standards proposed for the R7 District, summarized in the table below, are intended to facilitate higher density multi-family development while maintaining appropriate design and livability standards. Compared to lower-density residential districts, the R7 District allows increased intensity, height, and unit yield, reflecting its role as a primary tool for achieving the City’s long-term housing and infill development objectives. These standards are designed to provide flexibility for development on constrained urban sites, reduce regulatory barriers, and support the production of a diverse range of housing types, including apartments and condominiums. Similar to

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the proposed R6 district, single-family residential uses would not be permitted within this proposed district.

Development Standard R7 Proposed Requirement
Maximum Density 130 dwelling units per acre
Floor Area Ratio 4.0
Maximum Height Eight Stories / 100 feet
Front Yard Setback None Required
Side Yard Setback None Required
Rear Yard Setback Five Feet
Buffers Adjacent to R1 or R2 Districts Side: 10 ft
Rear: 15 ft

3. MU3 District – Medium Density Mixed-Use
The MU3 (Medium Density Mixed-Use) District, implementing the General Plan Mixed-Use Medium II designation, will provide opportunities for medium-density mixed-use development that supports a vibrant, walkable, and economically diverse environment. The district allows a combination of commercial, office, and/or residential uses within the same building or site, as well as stand-alone uses. The MU3 District is intended to primarily be applied where a mix of uses can be supported by existing infrastructure, transit and services.

The district permits a broad range of neighborhood-serving and regional-serving commercial uses, including but not limited to retail shops, restaurants, personal services, offices, medical and dental clinics, hotels, and civic uses.

Residential development in the MU3 District is permitted through multi-family units with a minimum density requirement. The standards within the MU3 District, as shown below, are designed to encourage active ground- floor uses, support housing production, and promote compatibility with surrounding development through objective development standards.

Development Standard MU3 Proposed Requirement
Maximum Density (Residential) 99 dwelling units per acre Minimum Density (Mixed-Use with Residential)
50 units per acre when within ½-mile of a Caltrain Station 30 units per acre when beyond ½-mile of a Caltrain Station Per Section 27.02.230.

Floor Area Ratio 4.0
Maximum Height Nonresidential: Four Stories (50 Feet)
Residential, Mixed-Use with residential: Six Stories (75 Feet) Front Yard Setback None Required
Side Yard Setback None Required
Rear Yard Setback Five Feet
Buffers Adjacent to R1 or R2 Districts Side: 10 ft
Rear: 15 ft

4. MU4 – High Density Mixed-Use
The Mixed-Use High General Plan land use designation will be implemented through the MU4 (High Density Mixed-Use) District, which will allow higher-density mixed-use development. The MU4 District anticipates mixed- use buildings that integrate commercial, office, and/or residential uses within the same site or structure, as well as stand-alone commercial, office, or residential development. The district permits the same range of commercial, office, institutional, and residential uses allowed in the MU3 District, but at increased intensity to support a more concentrated mix of uses. The MU4 District is intended to accommodate the increased building height, floor area, and residential density while maintaining compatibility with surrounding development. The proposed standards of the MU4 district can be seen in the table below.

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Development Standard MU4 Proposed Requirement
Maximum Density (Residential) 130 dwelling units per acre Minimum Density (Mixed- Use with Residential)
50 units per acre when within ½-mile of a Caltrain Station 50 units per acre when beyond ½-mile of a Caltrain Station Per Section 27.02.230.

Floor Area Ratio 4.5
Maximum Height Nonresidential: Five Stories (65 Feet)
Residential, Mixed-Use with residential: Eight Stories (100 Feet) Front Yard Setback None Required
Side Yard Setback None Required
Rear Yard Setback Five Feet
Buffers Adjacent to R1 or R2 Districts Side: 10 ft
Rear: 15 ft
Floor Area Ratio (FAR)
To be consistent with the other residential districts in the current Zoning Code, staff is recommending the inclusion of a FAR maximum for the R6 and R7 Zoning Districts. The inclusion of a FAR would provide an additional measure to regulate overall building size alongside the proposed height and density standards, which is consistent with the current approach in the Zoning Code.

This item is identified as a discussion point for the City Council because a maximum FAR for the R6 and R7 districts was not recommended by the Planning Commission. During its consideration of the proposed districts, the Planning Commission provided a recommendation that FAR should not apply to the residential portions of buildings within the mixed-use districts, expressing a preference for regulating residential development only through height, setbacks and density standards. Given this discussion and the Commission’s recommendation, staff is highlighting this topic for City Council awareness, and to confirm whether or not a maximum FAR should be established for the R6 and R7 Districts and applied to residential floor area within a mixed-use development.

As noted above, these new districts are considered interim standards intended to support implementation of the highest density land use designation in General Plan 2040 until the Comprehensive Zoning Code Update (CZCU) is adopted. The standards in these districts will be reviewed, and updated as necessary, as part of the CZCU. And one of the specific regulations that will be assessed as part of the CZCU is FAR (how it is calculated and to what it is applied), so these districts (R6, R7, MU3 and MU4) would be updated accordingly, based on where the new FAR requirements land. Thus, for consistency with the rest of the existing Zoning Code, staff recommends setting a FAR limit for the four new districts that includes all floor area as the interim standard to be consistent with the current Zoning Code. Then, as part of the CZCU, the long-term plan for how FAR should be applied citywide, in all districts, will be assessed and determined.

Height Limit Methodology
The proposed height limits in the four new districts are based on a formula that used 14 feet for the first floor and 12 feet per floor for each upper story level. Since building height is a key policy topic, the methodology for developing numeric height limits in the Zoning Code will be further evaluated and discussed as part of the CZCU, with final height limits being adopted with the Updated Zoning Code. Thus, these proposed height limits are considered interim standards.

With regards to the mixed-use districts (MU3 and MU4), consistent with the story range specified in the General Plan, two height limits are proposed – one for residential/mixed-use residential and one for non-residential development. For residential projects, the height limit aligns with the maximum story limit specified in the General Plan, which is consistent Housing Element commitments. For non-residential projects (commercial/office), the height limit aligns with the lower end of the General Plan’s story limit range. This approach is consistent with the General Plan’s goal to incentivize housing

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production as part of mixed-use developments.

With regard to the residential districts (R6 and R7), the height limits are the same as the maximum story limits specified in the General Plan, again in order to be consistent with the Housing Element commitments.

Update to Landscaping Requirements
Chapter 27.71 of the San Mateo Municipal Code establishes general landscaping requirements for development projects that require a planning application. These standards are intended to ensure high-quality site design and compatibility with surrounding development and include requirements for screening of parking areas, landscape buffers between residential uses and adjacent dissimilar land uses, and the installation of street trees along public frontages. In addition, the chapter quantifies the value of all landscaping and trees that are removed (landscape unit or LU value) and assesses an in-lieu fee that a project is required to pay. These detailed landscape plan submittal requirements, performance standards and in-lieu fee assessments contribute to the overall complexity, cost, and review time of development proposals.

Under the existing Zoning Code, single-family residential development is exempt from these minimum landscaping requirements and is instead regulated by separate residential development standards. The proposed Ordinance would amend Chapter 27.71 to extend a similar exemption to 100 percent affordable housing developments. While these projects would no longer be subject to the general landscaping requirements of Chapter 27.71, applicable tree preservation and new landscaping requirements would remain in effect pursuant to other sections of the Code.

The intent of this update is to remove regulatory barriers that can affect the feasibility of affordable housing projects by reducing design constraints, application materials, and review requirements that add cost and time to project delivery. By streamlining landscaping requirements for 100 percent affordable housing developments, the proposed Ordinance supports implementation of the City’s Housing Element and Regional Housing Needs Allocation (RHNA) obligations. A full review of Chapter 27.71 will happen as part of the CZCU, but this amendment was prioritized to ensure that any near-term affordable housing projects are not subject to these requirements.

Other Zoning Code Revisions

1. SPAR Requirement
Chapter 27.08 of the Zoning Code currently states that all projects over 55 feet in height shall require review by City Council. However, following the passage of Measure T, which established updated building height thresholds throughout the city, the Zoning Code was amended to specify that only buildings that exceed the height limit in the General Plan require City Council approval. Thus, this language is now inconsistent with other more recently amended sections of the Zoning Code, so it is proposed to be removed to bring it into alignment with the updated review threshold.

2. Community Care Facility Definition and Site Plan and Architectural Review (SPAR) Procedures In April 2025, the City adopted Ordinance No. 2025-03 to clarify the City Council review process for projects requiring Site Plan and Architectural Review (SPAR). As adopted, the updated SPAR-related provisions were inadvertently placed within the Zoning Code’s definitions section, resulting in the removal of the existing definition for “community care facility.” The proposed Ordinance would correct this error by reinstating “community care facility” as a defined use within the definitions section, using the same language as before. In addition, the SPAR procedures in Chapter 27.08 (Rules of Procedure) would be updated to align with the City’s current City Council hearing process.

3. Residential References within Non-Residential Districts The City of San Mateo currently permits residential development in several non-residential zoning districts, including the Commercial (C) and Executive (E) districts. To ensure that residential projects in these districts comply with applicable City requirements, the Zoning Code includes cross-references to the appropriate residential development standards. The proposed updates clarify and expand these references to ensure that all applicable residential standards are clearly identified and consistently applied.

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Further, within the C1 (Neighborhood Commercial) District, residential units are a permitted use above the ground floor to support the City’s housing production goals while also supporting the continued presence of ground floor commercial space in the City’s commercial districts. With a need to maintain commercial floor area around the City to support local businesses and neighborhood serving commercial uses as the City grows and redevelops, it is recommended that the permitted uses in the C2 and C3 (Regional Commercial) Districts be updated to specify that residential units are a permitted use above the ground floor, consistent with the C1 District.

4. Permitted Uses within C4 Zone District, CBD Zone District and E2 Zone District In April 2025, the City adopted Ordinance No. 2025-03 to clarify language within the C4 (Service Commercial), CBD (Central Business District), and E2 (Executive Office) zoning districts. During that update, several uses that were intended to remain as permitted by right or allowed through a special use permit were inadvertently removed.

The proposed code amendment restores these previously permitted uses. No new uses beyond those previously discussed in the SMMC are proposed.

5. Retail FAR Standards
The Zoning Code’s definitions section currently describes how floor area ratio (FAR) is calculated for development projects within the City. As written, the code requires that ground-floor retail spaces with ceiling heights exceeding 18 feet be counted twice for the purposes of floor area calculations. This provision may discourage applicants from incorporating contemporary design elements, such as more open commercial spaces and higher ceiling heights.

The proposed amendment would remove this standard to allow for more flexibility in the design of ground floor uses and ensure that Class A commercial space with taller ceilings can be utilized without being limited by FAR limits.

6. In-Person Sale Requirements within Required Retail Frontage Zone The City of San Mateo has established required retail frontage areas in two key locations: Downtown and the West 25th Avenue commercial corridor. Within these areas, specific requirements govern permitted uses to ensure that storefronts remain pedestrian-oriented and accessible to a wide range of visitors. As currently written, the Zoning Code specifies that within required retail frontage zones, retail businesses that conduct a majority of their sales (over 50 percent) via the internet or other telecommunications methods are not permitted. This requirement appears to be outdated and overly restrictive, as many modern retailers rely on online sales as a primary component of their business operations. Staff is proposing to remove this restriction to better reflect current retail practices and to allow a broader range of retailers that conduct business online to be able to locate within these important commercial corridors in the City of San Mateo.

7. Clarification on Temporary Construction Uses
The amended zoning districts have been updated to clarify that temporary construction-related buildings and structures are permitted only during an active construction period associated with an approved development project. Such facilities must be removed upon completion of construction.

NEXT STEPS:

If introduced, the Ordinance will be brought back for a second reading and adoption at the next available City Council meeting, and if approved by Council, the Ordinance will then go into effect 30 days afterwards.

PUBLIC NOTICE AND COMMENTS:

All meeting noticing requirements were met, including the publication of a public notice in the newspaper of general circulation (San Mateo Daily Journal) and posting at City facilities at least 10 days in advance of the public hearing consistent with Government Code Section 65090. Public notice was provided in advance of the Planning Commission hearing in compliance with Assembly Bill (AB) 2094 and Government Code Section 65854. Additionally, staff sent meeting details in the Planning Division eNewsletter, citywide eNewsletter, and the Housing Element interested parties list and posted to the Planning Division’s Current Development Projects webpage.

Staff has received seven public comments on the proposed Ordinance, which are included as Attachment 3. The public

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comments note support of cost reductions for 100% affordable projects, support for affordable housing, input on the new open space standards, and support for increased building heights. In addition, commenters requested amendments to other Code sections and identified several outdated standards that have not been addressed as part of the proposed Ordinance. These changes are intended to be interim development standards while outreach and detailed analysis is completed as part of the Comprehensive Zoning Code Update (CZCU).

Comments also noted concerns related to the proposed building heights for commercial-only buildings within the mixed- use zone districts and if it is consistent with the General Plan. While the General Plan does establish a range of permitted building heights based on stories, the Zoning Code has the authority to implement specific height standards within the height range set by the General Plan, so staff does not see any inconsistencies with the proposed Ordinance as drafted.

Translating General Plan story limits to Zoning Code height limits will be a key discussion topic as part of the CZCU, with final height limits being set as part of that process and these districts being updated accordingly. The letter also identified a minor error in the redline document reviewed by Planning Commission, which has since been corrected.

Any public comments submitted after agenda publication will be posted to this item on the City’s Public Meeting Portal as “Post Packet Public Comments.”
ENVIRONMENTAL DETERMINATION:

The proposed Ordinance is statutorily exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 21080.17 of the Public Resources Code and Section 15183 of the CEQA Guidelines. CEQA Guidelines Section 15183 provides a statutory exemption for projects that are consistent with a previously adopted General Plan, Community Plan, or Zoning ordinance for which an Environmental Impact Report (EIR) was certified. The General Plan 2040 and Climate Plan Update Final EIR, finalized in January 2024, evaluated development impacts associated with approximately 19,764 residential units and 3,186,000 square feet of nonresidential floor area. The proposed Zoning Code amendments are intended to facilitate development capacity consistent with the General Plan and would support the development of additional residential units and nonresidential floor area within the growth assumptions already analyzed in the EIR.

STRATEGIC PLAN ALIGNMENT:

This proposed Ordinance supports implementation of the City’s Land Use and Housing initiatives.

ATTACHMENTS
Att 1 – Proposed Ordinance – Zoning Code Amendments
Att 2 – Proposed Ordinance (Track Changes)
Att 3 – Public Comments

STAFF CONTACT
Shelby Donohoe, Senior Planner
[email protected]
(650) 522-7218

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