Planning commission backs code changes to align Palo Alto ADU rules with state HCD guidance; asks staff to streamline fee‑deferral process

The Planning and Transportation Commission on April 9 voted 7–0 to recommend City Council adopt an ordinance updating Palo Alto Municipal Code chapters affecting accessory dwelling units (ADUs) and junior ADUs (JADUs) to respond to a compliance letter from the California Department of Housing and Community Development (HCD).

Principal planner Garrett Sauls told commissioners the changes respond to specific HCD comments that the city’s current code contained provisions that were inconsistent with recent state law and HCD guidance. Sauls said the city received HCD’s letter in October and staff grouped HCD’s comments into several focus areas for the commission’s review.

Key changes recommended by staff and approved by the commission include: - Unit allowances: Clarify local rules to match state allowances for single‑family parcels (staff described scenarios in which a property could now include an attached ADU, a detached ADU and a junior ADU) and adjust multifamily conversion/ detached ADU rules to reflect state limits. - Junior ADU approach: Because HCD objected to certain local regulatory approaches for JADUs, staff proposed offering a development “bonus” tied to a JADU rather than adding separate, potentially conflicting JADU standards into the city’s ADU chapter. Commissioners amended the draft language so a property’s bonus square footage would not exceed the size of the JADU itself. - Trees and landscaping: Add objective definitions and thresholds for protected trees, required mitigation/replacement measured against canopy size (staff proposed adopting the city’s tree technical manual table into the ADU section so tree rules are objective and enforceable). - Kitchens and prescriptive design rules: Remove locally prescriptive kitchen dimensions and appliance counts for ADUs and JADUs (HCD said such prescriptive items conflict with state law); staff said the packet’s design guidance would remain as advisory material in the ADU handbook.

Principal planner Garrett Sauls summarized the staff recommendation: “we’re gonna be talking about the ADU ordinance updates that are presented to you in the packet,” and that the draft ordinance incorporates the revisions necessary to address HCD’s items and to provide objective tree standards and a JADU bonus approach.

Public comment included a request from Sven Thiessen asking the city to streamline the impact‑fee deferral and lien recordation process for ADUs. Thiessen told the commission he had delayed construction while his records were processed and asked staff to create a more efficient path for the fee‑deferral recordation. He said in part: “If you build an ADU … you have to pay a bunch of huge impact fees. My ask is that we keep [fees] the way that the process is right now, but that you direct staff to look at a streamlined process to make this happen.”

Commissioners debated the JADU language and ultimately supported an amendment limiting the bonus to the JADU’s size so property owners could not claim a larger house expansion under the banner of a small JADU. Commissioners also asked staff to examine whether the staff/manager signature and notarization steps for fee‑deferral recordation could be made more efficient; staff agreed to review implementation steps and to return with recommendations as part of future work on ADU implementation.

PTC’s motion — to recommend adoption of the ordinance with the JADU bonus modification and with staff direction to study lien/deferral process efficiencies — passed 7–0. If the commission’s recommendation stands, staff told the commission they expect to bring the ordinance to City Council on a tentative May 12 hearing date.

Votes at a glance - Motion: Recommend Council adopt ordinance updating Municipal Code chapters 16 and 18 to implement HCD‑directed changes to ADU/JADU rules; include amendment that bonus square footage for a JADU cannot exceed the size of the JADU; direct staff to examine impact‑fee deferral and lien‑recordation efficiencies. Vote: 7–0.

Ending: Staff will prepare final ordinance language for City Council consideration (tentatively May 12), incorporate the commission’s JADU bonus amendment and return at a later date with any recommended process changes to streamline lien recordation and fee deferrals for ADU applicants.