Atherton leaders direct staff to draft inclusionary housing ordinance focusing on school-site overlays

The Atherton Town Council and Planning Commission on June 23 directed staff to draft an inclusionary housing ordinance that, at minimum, would require on‑site affordable units on the RM‑20 and RM‑40 overlay sites that include Menlo College, Menlo School and Sacred Heart, and then send the draft to the Planning Commission for review.

The matter matters because the town’s certified housing element relies on a mix of accessory dwelling units (ADUs) and multifamily capacity on those school and public‑facility overlays to meet its Regional Housing Needs Allocation (RHNA) and guard against a shortfall. The California Department of Housing and Community Development (HCD) recently certified Atherton’s housing element but flagged steps the town should take on implementation, including program 3.811 c, which anticipates a 20% inclusionary requirement on the school sites.

City Manager George Rodix briefed the joint bodies that staff presented four implementation options: do nothing; confine an ordinance to RM‑20 and RM‑40 overlay sites requiring on‑site affordable units; expand to include RM‑10 overlay sites with an in‑lieu fee option; or implement a townwide program that would apply to single‑family development and create a funding mechanism for off‑site affordable housing. Rodix said staff’s minimum recommendation was the RM‑20/RM‑40 option to remain consistent with state mandates and the town’s housing strategy.

Town Planner Britney Bennetts summarized the background and the consultant work by Bay Area Economics (BAE), noting the earlier feasibility and in‑lieu fee analyses and reminding the bodies that HCD’s certification letter pointed toward adopting program 3.811 c. “The way that we address that in the housing element was to rely on the RM‑20 sites RM‑20/40 sites,” Bennetts said, adding that the multifamily overlay…