San Carlos eyes density, taller height limits to meet RHNA goals

City staff presented the council with a progress report on the city’s updated Housing Element, a state-mandated practice meant to identify where the city could welcome new residential units to meet growing housing needs identified through the Regional Housing Needs Assessment done every eight years. 

With an anticipated 2,735 new homes required to be built in the city by 2030, Planning Manager Lisa Porras described the new RHNA cycle as a “much more rigorous” process than before. Goals are far more ambitious than in previous cycles and the state gets a final say in which areas are actually suited for residential development, she said.  

Ultimately, staff envisions meeting the goal by focusing on increasing density and height limits in areas already zoned for residential use, about 70% of the city’s land. The move would protect areas zoned for commercial and industrial uses, a city interest called out in its 2009 General Plan, Porras said.  

During community workshops on the Housing Element, residents shared most support for increasing building heights from 50 feet to 75 feet that could yield substantially more units. But with a density bonus, developers could be permitted to build higher than 75 feet, Councilmember Adam Rak said, noting the public should be made aware of the possibility.

Doubling the density of units permitted per acre would also encourage growth, Porras said. City code currency allows a density of 20 units per acre but staff have found benefits in increasing density to 40 and 50 units in some areas. 

Recognizing a community interest in protecting single-family neighborhoods, Porras said staff also envisions a phasing approach to the building code changes that would require lower heights near residential areas. 

“This is really going to be the beginning of a new era in our community,” City Manager Jeff Maltbie said.

Staff is still working on finalizing the document and will seek City Council support before submitting it for state review, Porras said. Still, councilmembers asked to weigh in on staff’s progress with the RHNA process before formally adopting its East Side Innovation District Vision Plan, a guiding document for future growth on the east side.

Rough estimates shared by various city officials show the city will be welcoming upwards of 8,000 new jobs due to strong development interest on the east side of the city, largely from life science developers. 

The growth has matched what the city had anticipated in its General Plan but councilmembers expressed concerns the city will still fall short of meeting housing needs after a season of intense building.  

“We’re going to be moving in the wrong direction on the housing ratio even if we meet this entire RHNA [goal],” Councilmember Dugan said, questioning whether the city should aim for an even more ambitious goal. 

He also voiced concern for whether the city will see the type of housing needed be built, specifically below-market-rate units. Of the 2,735 new homes the state is calling for, 739 must be at very low income level, 425 at low income level and 438 moderate income level. 

Together, that accounts for more than half of the city’s goal while developers are only required by the city to dedicate 15% of new units to BMR levels. The previous Housing Element cycle showed only 9% of homes built were listed as affordable, Dugan said, but staff said a 2 1/2 legislative change now allows the city to require a developer to include BMR units in their plans. 

“That just tells me we have to start doing something very different as a city if this is more than just a paper exercise,” Dugan said. 

Al Savay, Community and Economic Development director, agreed with Dugan’s concern, calling it a “very serious problem” in the state. Making BMR units even more difficult to build is the cost of development, Savay said. 

Echoing points made by Porras, he said the city is not responsible for building housing units but is responsible for managing land in a way that encourages the type of housing development needed.

“It’s a matter of economics that hasn’t been solved by the marketplace,” Savay said. “This will require a massive group effort between the public and the private sector to make it work.”  

sierra@smdailyjournal.com 

(650) 344-5200 ext. 106