San Mateo has updates to its zoning policies

The updates would also codify minimum densities for mixed-use developments and those with five or more housing units. For those within a half mile of a Caltrain station, that would be anywhere from 30 to 50 units per acre, with less density required for some buildings outside of that radius.

Despite the council’s general approval, Deputy Mayor Adam Loraine noted concerns about whether the ratio of commercial development, which generally has more favorable margins than residential, to housing would incentivize developers to build enough residential units.

“When we have projects that seek to add some amount of residential to a mixed-use project, potentially to take advantage of a density bonus, I think it’s important that we make sure a certain amount of residential — that feels substantive and adds to that goal of having more access to affordable housing — is met,” Loraine said.

The city has seen an influx of development projects since it passed Measure T in November, which increased height and density limits in several areas, including near Caltrain stops. A new development project recently proposed near the Hillsdale station would demolish the mall and add about 1,400 housing units, in addition to several commercial buildings. Another one, on Concar Drive, would add almost 900 homes to the city’s housing stock, replacing much of the current retail shopping area and parking lot.

Community Development Director Zach Dahl said he hasn’t noticed any recent development applications that are trying to take advantage of density bonus laws by providing the bare minimum number of housing units.

“We’re not seeing projects trying to minimize housing just to get access to concessions and waivers. We’ve got 15 pipeline projects right now. None of these projects are giving us nominal housing just to get access to concessions and waivers,” Dahl said. “Everybody is hitting our max.”

As part of its state-mandated housing goals, or Regional Housing Needs Allocation, the city needs to approve a little over 7,000 housing units between 2023-21.

New zoning changes also include allowing developers to receive up to two extensions for entitled projects. Current rules dictate the developer has about 2.5 years from the application approval to building permit process to build the project, with one two-year extension allowed. Now, developers could request an additional two-year extension. The update could come in handy during economic downturns, such as over the past year and a half, when, at one point, more than half of the city’s entitled projects had sought extensions over a lack of financing.

The City Council unanimously approved the changes.