Foster City housing progress slow — like many other cities

But according to data from the Fair Housing Elements, only a fraction of the state’s jurisdictions are on track with their RHNA goals. 

The city is mostly held responsible for the number of units approved, not necessarily constructed, as that is often out of the city’s control. However, between 2023-24, about 20 units have been constructed, mostly market-rate housing. 

Due to a mix of largely macroeconomic factors, including interest rates, the lending landscape has tightened over the last year and half, making it hard for developers to secure financing for their projects. That means that fewer have submitted applications to cities, and out of those projects that have already received the necessary entitlements from the city — which are typically valid for only one to two years — many have requested extensions, often to buy more time for funding needs. 

Over the last couple years, Foster City has received extensions from several properties, including a research and development building on Vintage Park Drive and the Chess Hatch project on Chess Drive. 

“Overall we have seen a slowdown in these kinds of projects, we are really hoping this year that construction picks up,” Community Development Director Sofia Mangalam said. “We have done our part when it comes to zoning and general plan amendments … but our numbers do look low.”

As part of its housing element process, the city updated several policies and programs related to accessory dwelling units, including implementing an expedited review process and financial incentive program. But to hit its RHNA numbers will require a heavy reliance on higher density, multifamily units.

“Part of the challenge we have that some other cities don’t have as extreme … is we are mostly in a redevelopment mode. We don’t have a lot of developable, raw land where you are able to build huge tracts of housing with those types of things,” City Manager Stefan Chatwin said. “Redevelopment is generally more difficult than development.”

Chatwin added that the last couple years has been tough for other jurisdictions in the region and statewide, though the lack of undeveloped land in the relatively small city means it has to lean on redeveloping existing sites.

“When we start talking about ADUs or lot splits, we’re talking about very little impact over the 1,800-plus we need,” Chatwin said. “Most of that is going to come from high-density redeveloped apartment complexes or new apartment complexes that can house that many. You’re going to see less impact out of the ADUs and things like that.”