Millbrae plans housing help

“I do think we have opportunities to think creatively as a city, to lead as a city and to develop programs to incentivize,” Williams said. “Cities do not build housing, we create the opportunity to build housing and that's what we are doing with this housing element.”

The city’s staff found seven programs for the City Council to explore as options. One program the city is already exploring, which other cities have already implemented, is a city mortgage assistance program that would help city workers with mortgage assistance so they can buy local homes. The funding would come from the California Public Employees Retirement System, according to the staff report.

“We would like to open this to not only city employees but school district employees,” Williams said.

Another idea Councilmember Anders Fung presented was to create a program to incentivize development in priority areas. The incentive would be providing a density bonus for developers. He also said the city could boost its inclusionary requirement for those developments exceeding its current 15% for below market rate units. His goal is to reach the Regional Housing Needs Allocation goals so the city can take back control of development and not be subjected to Senate Bill 35, which streamlines projects without the city’s review. RHNA goals are set by the state for local cities to provide sufficient zoning for new housing.

“So that we can meet these requirements as they come from HCD and also the RHNA goals,” said Fung who added it could be a part of downtown and how the city wants to boost economic development.

Councilmember Gina Papan said she would be interested in raising the developers’ inclusionary limit for very-low and low-income housing units from 15% to 20% as a way to boost the city’s affordable numbers. To do so, the city would need to look at the feasibility of 20% for below-market rate renters with the caveat that the developer would still be able to turn a profit with the remaining market-rate units. HCD would review the study’s findings and approve before the city moves forward with the program.

Fung also entertained an idea to rezone sites as by right, which streamlines the entitlement process for sites in the city. He said it would identify certain sites as pre-approved by the council as long as the developer meets certain requirements.

However, Mayor Ann Schneider was uncomfortable with the idea, adding, the city has its own unique situations with only one main road out of town on the east side. She also worried about state influence in zoning decisions.

“I don’t want the state telling us what we should be doing, they have done enough of that,” Schneider said.

Instead, she suggested the city come back with the by-right idea later under the city’s terms that would be beneficial to the city, developers and potential renters.

Regardless, the state’s law says if a city identifies a site in a RHNA cycle and it isn’t developed during that cycle, if the city wants to use the same site in the following cycle it must be rezoned as by right. The city currently has four sites that fall under this law.

Fung responded to Schneider's comment by saying the city can take back that control by establishing a local density program.

“Establishing our own local density bonus program is our way to tell the state what we are going to do to meet those requirements and also tell the development community how they can obtain entitlements in the area where we want to see development done,” Councilmember Anders Fung said.

Schneider’s biggest concern is ensuring displaced residents from new developments have an affordable option within the city.

“When you look at the Anton apartments, the eight units they are demolishing to build 19, those people who are losing their homes won’t be able to stay in Millbrae,” Schneider said. “I think we should do more.”

HCD also recommended mid-progress reviews, meaning, every four years the city would meet with HCD officials and look at the progress it made toward its goals. In the review for the city’s first housing element submittal, HCD also asked for more granular information regarding the city’s general plan.

The programs presented during the meeting are concepts the city could consider adding to its housing element. Even if they are added to the housing element, the city would still be required to come back with each idea and approve them individually through the council’s vote.

During the meeting, the City Council unanimously approved and self-certified its housing element. The city planned to submit its revised housing element to HCD by the end of the week. HCD has 60 days to review and respond with its assessment. The city anticipates being certified through HCD sometime this summer.

nick@smdailyjournal.com

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