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City project

Downtown Housing Plan

Long-range initiative addressing housing development feasibility in downtown Palo Alto.

Current status
Downtown housing planning was described as moving forward and included in the recommendation.
Location
Downtown housing plan assessment area
Street view near Downtown housing plan assessment area
Map of Downtown housing plan assessment area
  1. July 16, 2026 update

    Staff reported that the City had received five preliminary SB79 applications for potential downtown housing development.

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  2. June 1, 2026 SB 79 implementation presentation

    Staff presented SB 79 implementation approaches and recommended temporary ordinances, permanent-ordinance preparation, and continued advancement of the plan. Public comment began, but deliberation and action were not completed in this chunk. Discussion indicated the plan would evaluate development potential aligned with SB 79 and potentially consider incentives beyond SB 79 standards.

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  3. February 25, 2026 update

    Staff said the plan could evaluate whether and how to modify the shrink-wrap restriction as part of housing incentives, rather than making a complete standalone change immediately.

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  4. January 24, 2026: Staff outlined proposed planning milestones

    Staff proposed draft scenarios for Council review, followed by plan drafting and initiation of environmental review. Staff said Senate Bill 79 options could affect the work.

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  5. October 22, 2025 progress update

    Staff reported on plan progress, including a 2024 Housing Element baseline capacity of 334 new housing units across 32 housing opportunity sites. Staff reported a June 2025 community assessment, a baseline capacity of 334 units across 32 opportunity sites, and current feasibility challenges. Council discussed retaining tools that could encourage redevelopment for housing, including office-floor-area transfers.

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  6. September 24, 2025 update

    Commission leadership reported an informal discussion with planning staff on economic feasibility, possible effects of SB 79, and approaches for moving the plan forward.

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  7. July 9, 2025 commissioner update

    A commissioner reported that limited downtown housing development was currently financially feasible, citing economic conditions, office competition, small site sizes, and parking as principal constraints.

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  8. Grant agreement amendment and deadline extension approved

    Council approved an amendment to the Metropolitan Transportation Commission grant agreement, extending the deadline from April 30, 2025 to April 30, 2027 and revising scope and task allocations.

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  9. March 17, 2025 staffing and implementation update

    Staff cited the plan as a significant workload affecting scheduling and capacity for housing-priority implementation. Staff proposed presenting a community assessment and seeking council direction in Q2, with policy development and continued community engagement targeted for Q4 conclusion.

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