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State interpretation of AB 2097 could block parking requirements near Amtrak station, city staff say

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Summary

City planning staff said a January interpretation of AB 2097 by HCD treats any train station parcel as a major transit stop, preventing the city from requiring parking for many downtown projects and reducing in-lieu fee revenue.

Tim Lowe, community development staff, told attendees that Housing and Community Development's recent interpretation of AB 2097 treats train stations and their parcel boundaries as "major transit stops," preventing local jurisdictions from imposing parking minimums on developments within a half-mile of those parcels.

Lowe said the city mapped roughly 2,000 parcels within a half-mile of the Amtrak station, about 1,500 of which are residentially zoned. Under the interpretation, he said, "we cannot require or enforce parking regulations" for projects on those parcels, with limited state-law exceptions such as some hotel uses.

Planning staff warned this would affect downtown in-lieu parking fees where the downtown in-lieu area overlaps the new major-transit-stop buffer. "Parts of the downtown in lieu area, you now wouldn't have to pay in lieu fee because, like, there's no parking required," Lowe said.

Attendees asked whether the interpretation extends to bus stops and other transit facilities. Lowe said the statute and HCD guidance distinguish rail and certain frequent bus-service stops: the major-transit-stop designation depends on the type of station and the frequency and configuration of transit lines. Staff said they would check the Amtrak and Cal Poly stop listings and GIS layers to determine precise coverage and whether additional corridors might meet the definition if bus service frequencies changed.

Staff advised developers and property owners to review the updated GIS overlay and noted the interpretation is recent: "this is going to affect. It's now. It's now. 4 months ago," Lowe said, recounting the timing of the guidance.

No formal council action was recorded in the meeting; staff said they will look into mapping and revenue impacts and bring follow-up information to the appropriate council item.