Planning commission recommends zoning changes to implement housing incentives, asks staff to study FAR bonus and El Camino nodes

The Planning and Transportation Commission recommended the City Council adopt an ordinance amending Title 18 of the Palo Alto zoning code to implement the Housing Incentive Program (HIP) and the Affordable Housing Incentive Program (AHIP), voting 6‑0 with one absence on Dec. 17, 2024. The commission also asked staff to analyze an FAR bonus for non‑RM zones tied to a 10% three‑bedroom unit threshold, to propose additional retail nodes along El Camino Real within three months, and to expand AHIP applicability to HIP‑eligible locations.

The programs aim to relax development standards in specified commercial and mixed‑use areas in exchange for on‑site affordable housing or architectural review. Staff presenter Jean Eisberg described the two programs as distinct: the HIP applies to market‑rate projects while the AHIP applies to projects providing deeper affordability. "This is a public hearing on presentation and potential recommendation on amendments to title 18, the zoning ordinance, to implement 2 key programs of the housing element," Eisberg said during the staff presentation.

Why it matters: The ordinance is intended to help Palo Alto meet housing goals in the adopted housing element by making more development feasible on opportunity sites. Key proposed changes include increased floor‑area ratios and building heights on eligible sites, changes to retail‑preservation rules along corridors such as El Camino…