Housing law will have little change for Redwood City: Existing laws align closely with goals of Senate bill to promote denser, taller housing near transit

SB 79 goes into effect July 1, and although Redwood City has already enacted local laws to prompt dense housing near transit, the city still could see an effect on housing supply. 

The new law allows for 95-foot-tall developments with an allowable density of 160 dwelling units per acre within 200 feet of the Redwood City Caltrain station. Within a quarter mile from the station, developments can reach 75 feet tall with 120 dwelling units per acre. Between a quarter- and half-mile, development can reach 65 feet tall with 100 swelling units per acre. 

Some existing developments in the identified radius are already taller and denser than what would be allowed in SB 79, Yau noted. There are residential developments between the Caltrain station and El Camino Real, which is within a quarter-mile of the station, that already reach 80 feet tall and are between 180 and 215 dwelling units per acre. 

While there remains a substantial number of sites within the half-mile radius of the Caltrain station that could be eligible for the increased development capacity under SB 79, Yau said it may be stifled initially. 

“There are site specific factors and market conditions that will determine whether the theoretical capacity of SB 79 will actually be realized in development,” Yau said. 

Not only have high costs of development slowed the influx of proposals coming into the city, the focus area has already seen numerous projects recently completed or already underway that would not likely turn over soon and therefore not benefit from the increased SB 79 capacity. 

The increased capacity allowed by SB 79 only goes into effect if a developer proposes a new project. 

“Together, these factors suggest that In the near term, impact may be limited,” Yau said. 

To qualify for the increased density and height capacity granted by SB 79, a housing development must be proposed within the zone and the parcel must be zoned for residential, mixed-use or commercial use. There would be a minimum of 30 dwelling units per acre and at least five residential units in total. 

Any project with more than 11 units must build a particular amount of affordable units — and in the case that the city already has stricter rules of affordability, the greater requirement will be applied. 

While SB 79 is in effect for the first year or so, city staff will be working on its Transit Oriented Development Alternative Plan as permitted through the bill. This would allow for a “targeted approach” in applying SB 79 within Redwood City, Yau said. 

Establishing a localized alternative plan could allow the city to shift capacity allowed in certain sites to others that may be more preferable. Shifting development capacities would still be somewhat limited — no site can reduce density by more than 50% of its existing capacity and no site would exceed 200% of the maximum density, Yau said. 

The alternative plan will “redistribute housing to align within local contexts,” Yau said. 

With the Planning Commission’s recommendation, the City Council will consider directing staff to develop the alternative plan to maximize impact on promoting housing development near transit at its meeting, July 13. Should the council approve doing so, staff will work on the plan which would likely return for consideration in mid-2027.