Woodside adopts urgency ordinance to address state housing compliance, disputes HCD finding

The Woodside Town Council on Jan. 14 adopted an urgency ordinance amending multifamily zoning language and approved a resolution disputing a California Department of Housing and Community Development (HCD) finding that the town was not yet substantially compliant with the state's Cycle 6 housing element.

Town Attorney Jean told the council the town missed earlier statutory deadlines because the updated housing element was adopted July 30, 2024, and rezonings were completed Sept. 24, 2024. HCD returned comments identifying two issues it said prevented a formal finding of substantial compliance: objective standards for parking and a statutory interpretation of Government Code section 65583.2(h) that affects required density for projects containing low- or very-low-income units.

Jean said HCD interprets that code to require a minimum density of 20 units per acre for multifamily projects that include low- and very-low-income units; Woodside's zoning used the phrasing "up to 20 units per acre." The town worked with HCD on language to preserve the densities approved for two town-proposed projects (the High Road and Raimondo sites) while addressing HCD's concern about statutory language. Jean said a second change HCD requested would adjust multifamily parking rules from a flat two spaces per unit to a 1-space-per-bedroom standard with a 2-space maximum so small units are not burdened by an inflexible two-space requirement.

Council members emphasized speed because the town faces continuing exposure to builder's-remedy development petitions and other state enforcement risks until HCD issues a substantial-compliance letter. Council member Gold read a passage from HCD's most recent letter noting that "these revisions meet all statutory requirements. As a result, the housing element will substantially comply with state housing element law upon adoption of the draft revisions." Gold said that sentence materially changed his view and supported immediate action.

The council adopted an urgency ordinance to amend the multifamily district (Woodside Municipal Code chapter 153, —3.02(e)) by a 5-0 vote. The council also approved a resolution amending the multifamily sites identified in the housing element (the High Road and Raimondo sites and the privately owned site discussed as "773" in the packet) and a separate resolution disputing the HCD letter; both passed 5-0. Jean said the privately owned site (referred to in the meeting as 773 Kenyatta/Canada Road) would be handled with a separate zoning amendment at a future meeting to lock in the density referenced in the housing element.

Public commenters, including residents and counsel representing neighborhood groups, urged the council to ensure projects comply with the fire code and CEQA when projects reach the site-specific design phase. Attorney Ariel Strauss representing Armando Drive residents argued that the Raimondo parcel may require off-site upgrades or supplemental CEQA analysis if project designs change from those analyzed in the programmatic EIR. Sue Paletti and other residents said evacuation access and D107.1 (fire apparatus access) require careful review at the project stage.

Council discussion stressed that no specific project was before the council at the ordinance stage and that any project application would trigger site-specific review including fire-code compliance and project-level CEQA checks. Staff confirmed they would return with a separate zoning amendment for the privately owned site and that the urgency ordinance and parking amendment are the immediate steps HCD requested to obtain the state's substantial-compliance finding.

Actions taken: the council passed the urgency ordinance (effective immediately), approved the multifamily-site amendments, and adopted a resolution disputing HCD's prior finding. Staff was directed to transmit the revised ordinances and a transmittal letter (including HCD's language) to HCD for prompt review.

Votes at a glance: the urgency ordinance amending chapter 153.02(e) adopted 5-0 (Council member Abarish: yes; Council member Brown: yes; Council member Gold: yes; Council member Wall: yes; Mayor Domkowski: yes). The associated resolutions passed 5-0.

What remains: Jean said staff will return with a targeted zoning amendment for the privately owned site referenced in the housing element and that site-specific projects will require additional design-level review, fire-code confirmations and any CEQA supplements necessary before approvals.