Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Steve Monowitz, Director of Planning and Building
Subject: An ordinance amending the County Ordinance Code, Title 8, Article 1 (Zoning Districts, Overlay, and Combining Districts) Chapters 8.29 (R3-MD Zoning District), 8.115 (PC-HD Zoning District), and 8.116 (TS-MU Zoning District) to modify the inclusionary housing requirements applicable in these districts.
RECOMMENDATION:
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Public hearing to consider adoption of an ordinance amending the County Ordinance Code, Title 8, Article 1 (Zoning Districts, Overlay, and Combining Districts) Chapters 8.29 (R3-MD Zoning District), 8.115 (PC-HD Zoning District), and 8.116 (TS-MU Zoning District) to modify the inclusionary housing requirements applicable in these districts:
A) Open the public hearing
B) Close the public hearing
C) Adopt an ordinance amending the County Ordinance Code, Title 8, Article 1 (Zoning Districts, Overlay, and Combining Districts) Chapters 8.29 (R3-MD Zoning District), 8.115 (PC-HD Zoning District), and 8.116 (TS-MU Zoning District) to modify the inclusionary housing requirements applicable in these districts, previously introduced to the Planning Commission on September 9, 2026, and waive reading of the ordinance in its entirety.
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BACKGROUND:
On April 21, 2026, the San Mateo County Board of Supervisors adopted three new zoning districts, the R3-MD, PC-HD, and TS-MU districts, implementing the Rezoning Program, Program HE 11.2, of the County’s Housing Element. All of these districts allow high-density multifamily residential development and are intended to facilitate new residential development opportunities sufficient to meet the County’s assigned share of regional housing need and to bring the County’s Housing Element into compliance with the requirements of State law.
The County’s current Inclusionary Housing Ordinance requires that all multifamily residential development projects of five units or more must dedicate 20 percent of units as lower income housing. These inclusionary requirements apply to all zoning districts, including the new zoning districts adopted to implement the Rezoning Program.
These requirements are largely consistent with State law, which requires that, in areas rezoned to implement a Housing Element Rezoning Program, 20 percent of units must be provided at levels affordable to lower-income households, including low-income, very-low income, and extremely low-income levels.
However, the County’s Inclusionary Housing Ordinance, in limited cases, allows the inclusionary requirement to be met through the provision of units affordable to moderate-income households. For rental projects of between five and nine units only, the single unit required to meet the inclusionary requirement may be provided as moderate-income housing, and for ownership projects, up to half of the required below-market rate units may be provided as moderate-income housing. In addition, the County’s ordinance allows the County, at its sole discretion, to offer alternatives to construction of units on site, including in-lieu fees, land dedication, acquisition and rehabilitation of existing affordable housing, or provision of units in a different location. These alternatives place some provisions of the newly adopted zoning regulations in slight conflict with the requirements of State law, which intend that required affordable units in the rezoned areas be provided directly on site.
DISCUSSION:
The proposed amendments to the new zoning districts are intended to eliminate any inconsistency with State law, by requiring that all projects in these districts provide 20 percent of units affordable to households at or below the low-income level, and that all units must be directly provided on site, with no possibility of in-lieu fee, land dedication, or transfer.
The amendments would not otherwise change any provisions of the County’s Inclusionary Housing Ordinance and would only apply to projects built in the specific areas rezoned through the County’s Rezoning Program.
The proposed amendments have no potential impact on the type, extent, or intensity of development, and adoption of the ordinance is therefore exempt from environmental review pursuant to the “common sense” exemption, California Environmental Quality Act (CEQA) Guidelines 15061(b)(3).
COMMUNITY IMPACT:
Adoption of the amendments to the zoning regulations continue the County’s implementation of the Housing Element and ensure consistency of the County’s housing policies with State law, helping provide affordable and accessible housing for all residents and communities within San Mateo County.
FISCAL IMPACT:
There is no fiscal impact to the County from adoption of the proposed amendments to the various zoning regulations.