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
July 16, 2026 update
Staff reported that the City had received five preliminary SB79 applications for potential downtown housing development.
Read related coverageJune 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.
Read related coverageFebruary 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.
Read related coverageJanuary 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.
Read related coverageOctober 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.
Read related coverageSeptember 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.
Read related coverageJuly 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.
Read related coverageGrant 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.
Read related coverageMarch 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.
Read related coverage
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