San Carlos seeks boost in affordable housing

Eager to boost the number of affordable housing units being built in San Carlos, Adam Aronson, the city’s Economic Development and Housing manager, said staff has developed potential policy changes that would increase expectations of developers while balancing their profit interests.

Among the changes staff proposed is an increase to the percentage of below-market-rate housing required in for-ownership projects and reducing the size of a project that would have to meet that requirement.

Current city policy requires residential developments of seven units or more to list at least 15% of its units at BMR but that policy would be changed to apply to projects of five or more units. And instead of listing 10% of units at moderate income levels and 5% at low, staff proposes raising that percentage to 20% BMR and removing moderate-income-level housing requirements.

Councilmembers raised concerns for potentially losing missing-middle housing development under the policy change but Aronson said other housing policy changes in the city’s General Plan update could address that issue.

For rental projects, staff proposed keeping the city’s current policy that requires 10% of units be listed at very-low-income levels with 5% at low income but highlighting that projects with 15% very-low-income levels are eligible for a 50% density bonus from the state.

Weighing in on density changes, Councilmember Adam Rak suggested that the city tie the number of BMR units required to the square footage of a unit, noting some developers have “skirted” city requirements by building a smaller number of large units.

“To me, I would like to close that loophole,” Rak said.

Similarly, Councilmember John Dugan said BMR percentages should be based on the total inhabitable size of a project having seen a developer build substantially smaller BMR units to allocate more space to market-rate spaces.

Dugan also strongly backed a suggestion from Rak that the city require developers to maintain the expected BMR ratios after receiving a city density bonus. Aronson said it’s still unclear whether cities can legally require that of developers and City Attorney Greg Rubens said staff can do further research into the issue.

To boost the feasibility of rental projects for developers, Aronson suggested changes to the city’s local density bonus. As proposed, the city would allow developers to add four market-rate units for each very-low-income unit and two market-rate units for every low-income unit, going beyond the state density bonus.

Additionally, staff suggested the city require BMR units to remain that way into perpetuity and raised recommendations that would ensure residents of BMR units do not lose access to parking as the city shifts away from bundled parking.

Councilmember Ron Collins shared his own concerns that the city could discourage development by implementing too many changes.

“I hope we don’t lose sight of the fact that at the end of this process we want to make this ordinance so that developers are attracted to build units. If we keep packing it with restrictions and modification and changes I fear that we’re going to end up almost back where we started,” Collins said.

And while councilmembers shared support for most of the suggestions, they also agreed that impactful changes would come through the city’s General Plan update, which is slated to be complete within a year, Al Savay, Community and Economic Development director, said.

Specifically, Rak said, increased density and height allowances would be a “game changer” for developers that would be addressed through General Plan changes.

No decision was made Monday but Aronson noted many of these suggestions could come back for council approval within two months following further consideration from the Planning Commission.

In other business, the council also weighed in on potential changes to its beekeeping policy which some residents have said is too restrictive while others contend the policy is an important protective measure.

Assistant City Manager Nil Blackburn presented the council with four options all at different levels of restriction, the top being the current policy that only permits the ownership of a hive on a lot of at least 10,000 square feet and limits the number of beehives a resident can own to two hives, among other restrictions.

While considerate of those concerned about the hives and the impact on the health of those who are allergic to bees, councilmembers agreed the city’s current policy and permitting process could use an update.

“There’s two sides to this, as with about everything that comes before us,” Dugan said. “Bees are good but they are a bit of trouble and what we’re doing right now I don’t think is working.”

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