Milpitas planning commission recommends zoning changes to create Housing Opportunity Districts, sends package to council

The Milpitas Planning Commission voted to recommend that the City Council approve a package of general plan and zoning amendments to create “Housing Opportunity Districts” (HODs) that would update Town Center and Neighborhood Commercial Mixed Use (NCMU) rules to make mixed‑use and multi‑family housing easier to build.

The action, forwarded to the City Council with an amendment adopting the citywide parking ratios in the comprehensive zoning update, passed on a roll call with five ayes and one abstention. Commissioners voting yes were Krishna Kong, Medina Ashby, Commissioner Albana, Vice Chair Calkins and Chair Gupta; Commissioner Galang recorded an abstention. The commission’s recommendation would send General Plan and text amendment GP 24‑0001 and zoning map/text amendment ZA 24‑0001 to the council, and includes the Housing Opportunity District addendum to the Milpitas General Plan 2040 FEIR and a supplemental letter.

The HOD package is designed to implement the city’s General Plan and the sixth‑cycle Housing Element adopted in January 2023, and to respond to recent state housing laws and the city’s Regional Housing Needs Allocation (RHNA). Principal Planner Lillian Van Hoa summarized staff’s view in the presentation: “The housing opportunity districts will implement general plan goals and policies, incentivize affordable housing, help meet current and future regional housing goals, support the revitalization of aging shopping centers, support existing and future neighborhood‑serving retail and professional services, and create a net positive on city revenue.”

What the amendments would do

- Create subdistricts within the existing Town Center (TC1/2/3) and Neighborhood Commercial Mixed Use (NCMU 1/2/3) designations to clarify where mixed‑use, horizontal mixed‑use and residential‑only development are allowed. - Change maximum densities and heights in some areas: staff described lowering maximum density in NCMU parcels to 60 dwelling units per acre and reducing some heights to about 60 feet (5 stories) while raising Town Center capacity in places to align with the anticipated building types and allowable heights (staff presented a 65 du/acre figure for parts of TC). - Maintain an affordable housing strategy tied to the city’s Affordable Housing Ordinance: projects under the HODs would be subject to the city’s affordable housing rules, which staff described as requiring 15% of units to be affordable; 100% affordable developments would be allowed and would not be required to provide ground‑floor retail. - Update open‑space and objective design standards and incorporate transition standards (setbacks, upper‑floor stepbacks, daylight plane) to reduce impacts on adjacent lower‑density neighborhoods.

Environmental and legal context

Staff said the City Council certified a General Plan FEIR in 2021 and that CEQA addendum analyses pursuant to CEQA Guidelines sections 15162 and 15164 support the decision that the HOD changes are within the scope of the FEIR. Staff also provided a supplemental letter saying the latest revisions reduce the maximum build‑out compared with the earlier addendum analysis.

Planning Director Jay Lee and staff warned commissioners of consequences if the city does not adopt the rezoning: the state could find the city out of compliance with its housing element programs and decertify the housing element, which can expose a jurisdiction to so‑called builder’s remedy projects and reduced local control. Lee noted the state’s Department of Housing and Community Development (HCD) had granted an extension tied to reimbursement of grant funds, and that longer delays could jeopardize grant reimbursement.

Public comment and key concerns

The public hearing drew numerous speakers. Concerns most frequently raised by residents included traffic congestion (especially on Landis Avenue, Calaveras Boulevard and Montague Expressway), parking supply, school capacity, impacts on existing retail and neighborhood character, views and privacy, open space, and the adequacy of outreach materials and noticing.

- Opponents: Several residents urged more time, additional analysis and denser outreach. Public commenter Shankar Jay called the plan “an atrocious plan” and urged commissioners to visit Dixon Landing Road to see existing traffic problems. Multiple speakers asked for more detail on where hotel uses would be allowed and how parking and traffic mitigations would be funded and timed. - Supporters and other perspectives: Irshad Rashid, a long‑time resident, said he supported HODs and the goal of adding housing near jobs and services. Rigo Gallardo, a representative of the NorCal Carpenters Union Local 405, urged that future projects include labor standards, local hiring and apprenticeship opportunities.

Traffic, parking and state standards

Traffic analysis and mitigation drew extended discussion. Staff explained that California’s CEQA practice now emphasizes vehicle‑miles‑traveled (VMT) for programmatic analysis of land‑use plans while project‑level reviews still evaluate intersection conditions (level of service) where required. Roberto Lonesome of Public Works described the typical project‑level process: project applicants prepare a traffic impact analysis and, if impacts are found, the City can require mitigations or impact‑fee payments. Staff noted that major interchange or freeway improvements require coordination with external agencies (Caltrans, Santa Clara County) and substantial funding.

Parking emerged as a particular focus. The draft HOD standards included lower minimum parking to help make housing feasible, but commissioners adopted an amendment recommending that City Council apply the citywide parking ratios from the comprehensive zoning ordinance update (rather than the lower minimum in the draft HOD text). The commission voted to forward that parking recommendation to council as part of its package.

Formal action and next steps

The Planning Commission voted to recommend City Council: (1) adopt General Plan map/text amendment GP 24‑0001 and (2) adopt zoning map/text amendment ZA 24‑0001 to establish the HOD subdistricts (NCMU 1‑3 and TC 1‑3), and (3) adopt the Housing Opportunity District addendum to the Milpitas General Plan 2040 FEIR and the supplemental letter. The commission’s action included the amendment recommending that the City Council use the parking ratios from the citywide comprehensive zoning ordinance update as the parking standard for the HODs.

Because this is a recommendation, the City Council will make the final decisions on the General Plan and zoning changes and on adoption of the CEQA addendum and supplemental letter. Staff and several commissioners urged that community members communicate with elected officials and the council about the issues raised at the hearing.

Appeals and timeline

Staff told commissioners that HCD’s extension affects grant reimbursement timing and that delays may reduce the amount of state reimbursement. The commission also asked staff to convey community interest in a broader, community‑centered task force to study impacts of housing growth on traffic, schools, parks, health services and quality of life; the commission asked staff to forward that recommendation to the council for consideration.

Ending

The Planning Commission closed the public hearing and adjourned after forwarding its recommendation package to the City Council. The council will receive the commission’s recommendation and the amended parking proposal as part of the council packet; staff advised the normal appeal deadlines and publication procedures will apply.