Thunderstorms this morning, mainly cloudy during the afternoon with a few showers. High around 65F. Winds SSW at 10 to 20 mph. Chance of rain 90%..
Overcast with rain showers at times. Low 54F. Winds SW at 10 to 15 mph. Chance of rain 40%.
Updated: April 10, 2026 @ 8:40 am
An artist’s rendering of a 134-unit housing development in San Bruno.
A 134-unit housing development at the old Toyota dealership site in San Bruno was originally slated to have 40 at below market rates, but could now become 100% affordable if a tax exempt bond is awarded through the state.
This week, the San Bruno City Council agreed to enter into a joint powers agreement with the developer who will then apply for the bond through the California Municipal Finance Authority.
The plans were approved in December at 732-740 El Camino Real for a six-story building with 25 parking spaces developed by San Bruno Pacific Associates. The decision to enter into the JPA agreement required for the developer to receive the $60 million bond was unanimously approved at its meeting Tuesday, April 12. The terms of the bond means the development would have 100% affordable units, said Peter Gilli, Community and Economic Development director of San Bruno.
Councilmember Marty Medina said he is excited and supports the change if it means 100% affordable housing.
Marty Medina
“Part of our financial sustainability is dependent on providing substantial housing and we need more housing,” Medina said.
Councilmember Tom Hamilton said 100% affordability is much needed given the region’s housing crisis.
“San Bruno needs housing and affordable housing and the prospect of 134 affordable units is exciting,” Hamilton said.
The development was proposed under Senate Bill 35, which expedites the entitlement process by requiring the city to approve it without review and design standards. The bill allows for this if a city falls short to meet its Regional Housing Needs Allocation, a state law that assigns growth in eight-year cycles, in between 2015 and 2023. SB 35 offers the developers a density bonus which allows them to build additional units, massing, height and reduced open space, according to a staff report.
The site is within close proximity to public transit and, through a number of state laws, it doesn’t need to provide parking. In this case, there are plans for 25 parking spaces in a garage located on the ground level, with direct access to El Camino Real.
On Thursday, Medina said he briefly spoke with the developer prior to the meeting, who said he is looking for alternative parking solutions for the residents. That was a concern for Medina given the already congested parking circumstances near the site.
Hamilton clarified the city is not taking on any debt or responsibility for the bonds by entering the joint powers agreement.
“We are not responsible for the bonds, this is us joining the authority, to allow the bonds to be issued to fund this project,” Hamilton said. “We are not taking on any liability for the project.”
The developer originally planned for 40 affordable units. The below market rate units were broken up into several ranges of affordability. Seven were reserved for very-low income, 26 low-income and seven moderate-income families.
Neither the city nor the state would enforce that, Gilli said. If the bond is not approved, the developer will revert back to the proposed 40 affordable units.
The developer applied for the $60 million tax exempt bond through the California Municipal Finance Authority. City Manager Jovan Grogan said the city was not aware that the property owner was applying for the tax exempt bond when it processed the SB 35 application.
The applicant applied for building permits and will likely be approved in May, according to the staff report. The developer will have to collaborate with Caltrans to stage some of the construction since it is on El Camino Real.
(650) 344-5200 ext. 105
(650)344-5200, ext. 105
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