Millbrae passes emergency housing rules 

“We didn’t write the law, so what we’re trying to do here is just make it better for Millbrae,” said Mayor Anne Oliva. 

The council directed the drafting of the rule last week, citing concern that SB 9 could increase housing costs by redeveloping the city’s dwindling supply of inexpensive homes. The adopted policy reflects softened affordability requirements from last week’s discussions in which councilmembers had sought to require half of all new units created under SB 9 be below market rate.

“I think that’s a little more reasonable, a little less onerous on homeowners and makes it a little easier for these projects to pencil out,” said Councilmember Reuben Holober, who originally brought forward the idea of an emergency ordinance and suggested the change. Holober said he was proposing the reduced affordability requirement in response to concerns that the council was not acting in good faith.

Several other cities are eyeing or have passed similar temporary legislation with affordability requirements, including Cupertino, Fairfax and Los Altos Hills. The rules have been criticized by housing advocacy groups like California YIMBY that say below-market-rate requirements on small-scale projects will render development financially infeasible, thus limiting SB 9’s ability to create more housing.

“For larger affordable housing projects, we have to do things like nexus studies to understand exactly how many units and what percentages are affordable,” said Nathan Chan, a Millbrae resident who spoke out against the rules. “This requirement seems to be being imposed on SB 9 projects without any sort of study on how feasible they are.’’ 

SB 9 will work by allowing property owners to divide their single-family-zoned lots and build up to two units of housing on each half. Ordinarily such a proposal would be subject to the city review process and could be rejected; SB 9, however, will require cities to issue approval.

Homeowners could also keep their lots intact and use SB 9 to build an additional unit on their property, similar to adding an accessory dwelling unit. In this event, an affordable unit would not be required under the city’s ordinance. 

Given the county’s median income, to be considered affordable, studios would need to be offered at or below $2,558 per month, one-bedrooms at $2,741 and two bedrooms at $3,290. The units will be required to be deed restricted for 55 years.

Millbrae’s emergency rules will additionally stipulate that accessory dwelling units cannot be built on divided properties, an option that could have allowed an additional unit on each new lot. They would also require new homes be built more than 4 feet from property lines, the maximum setback the city can require per SB 9.

Councilmember Ann Schneider requested that the rules also limit SB 9 project eligibility within hazard zones including flood and tsunami prone areas. Community Development Director Darcy Smith said she would work that into the ordinance if possible.

The city’s rules will sit aside SB 9’s own stipulations, among them that parcels not already in urban areas do not qualify, nor can those within historic and environmentally sensitive districts. Those who redevelop a lot must also live in one of the new units for at least three years from the time of submitting an application.

Vice Mayor Gina Papan said that the city’s ordinance, which will last 45 days unless renewed, was meant to aid in implementation of SB 9, not prevent it.

“For a city that is 3.2 square miles and very small population, we have [approved the] vast majority of housing and will continue to do so,” she said. “We are trying to work through this process and we are also trying to provide badly needed housing.”

The ordinance, which required a four-fifths vote, passed unanimously. Councilmember Anders Fung, who previously expressed reservation toward the idea, said his support was contingent on the rule being temporary. Councilmembers voiced their intent to create a permanent ordinance next year. 

corey@smdailyjournal.com

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