Foster City updates entitlement extension and ADU policies

Per the commission’s recommendations at a prior meeting, “any request for an extension with changes to the originally approved project would be referred back to the original decision-making body,” said Senior Planner James Atkins.

The applicant would also incur a fee for the extension.

Over the last couple years, the city has fielded requests for entitlement extensions from at least four large commercial projects, including a Vintage Park Drive research and development facility and the Chess Hatch project at Chess Drive. The city isn’t the only one seeing an increase in such requests, as over half of San Mateo’s multi-unit residential and commercial projects have sought extensions, largely due to financing struggles. With a high interest rate environment, inflationary pressures, continuous layoffs and ongoing remote work patterns — not to mention plateaued rents — lenders and investors have found it increasingly hard to justify loans or equity in projects that, on paper, are not likely to turn much of a profit.

The July 3 meeting also solidified the commission’s approval to implement recent state laws surrounding accessory dwelling units. Assembly Bill 976, for instance, approved at the end of last year, prohibits local jurisdictions from mandating that ADU owner-occupancy requirements, and Assembly Bill 1332 — which will go into effect in 2025 — stipulates that ADUs can be sold separately from the primary dwelling.

“When state law changes, the city must update the standards as necessary, which in turn, addresses evolving business types and activities,” Atkins said.

The state-level changes are meant to boost housing production and sales, in turn helping cities meet their mandated housing goals, or Regional Housing Needs Allocation.

alyse@smdailyjournal.com

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