Tracy planning commission recommends broad zoning and housing-code updates to meet state housing rules

The Tracy Planning Commission on Nov. 5 recommended that the City Council introduce and adopt a set of ordinances designed to implement the city's 2023—2031 housing element and bring Tracy's zoning code into compliance with recent California housing laws.

The package recommended to the council includes changes to density ranges in multiple residential zones, a new density definition in Chapter 10 of the Tracy Municipal Code, and a new Chapter 10.1 (Housing Regulations) with five articles covering qualifying-housing streamlined review, objective design standards for multiple-unit and mixed-use housing, community care facilities, transitional and supportive housing, and emergency shelters and low-barrier navigation centers. Commissioners voted to recommend the ordinances to the City Council following staff presentations and a commission discussion; no public comments were received on either item.

Staff said the changes are driven by state requirements and the city's Regional Housing Needs Allocation (RHNA). "This project is City initiated to comply with state housing laws and to complete implementation actions required in the City Council adopted 2023 to 2031 housing element," staff said. Planner Craig (staff) told commissioners the city must update multiple zoning articles so the municipal code aligns with the housing element and with statewide standards.

Why it matters: the amendments are intended to ensure the city's housing element remains in compliance with state law and to identify the regulatory framework that would allow qualifying housing projects to proceed under ministerial or streamlined review where state law permits. Staff said the ordinance package is the first step in a set of roughly 94 implementation measures identified in the housing-element work program; additional code and map updates are expected through 2031.

Key changes and standards

- Density increases: Staff outlined revised density bands for several zoning districts. Examples cited by staff include medium-density ranges increasing from about 5.9 units per acre to as high as 20 units per acre, and high-density ranges moving from roughly 12'25 units per acre to 20—235 units per acre in some zones. "The state really took this one-size-fits-all approach," Craig said, noting the standards match those applied in other Central Valley cities. Staff emphasized these numeric changes reflect statewide guidance rather than a city-originated affordability formula.

- Definitions and permitted uses: The amendments standardize definitions across zones (for example, replacing some local definitions with state-aligned definitions for single-family, two-family and multifamily dwellings) and change how permitted uses are described in affected zones.

- Lot area and coverage: The draft ordinance removes many minimum lot-size requirements and adjusts maximum lot-coverage percentages to account for higher-density development options. Staff said the change responds to density-based metrics and the need to allow projects to achieve the new densities.

- Density averaging and clustering: Under the proposed code, applicants may average density across adjacent parcels if they are part of the same overall project, allowing mixed product types (duets, duplexes, apartments) within a single development as long as the overall density target is met.

- Objective design standards and ministerial review: For projects that include an affordability component or qualify under state laws (for example, SB 35/SB 423 streamlined review), the draft requires conformance with objective design standards rather than discretionary design review. Brianna Alameda, the city's new associate planner, said the proposed objective standards draw from the city's existing design goals and cover building form, massing, entrances, materials, parking structures, site design, pedestrian access, open space, and utilitarian elements such as trash enclosures and mechanical screening.

- New Chapter 10.1 (Housing Regulations): The recommended new chapter would contain five articles: - Article 1: Qualifying Housing Streamlined Review (SB 35/SB 423) ' establishes ministerial review criteria and objective standards for qualifying projects when the city is making insufficient progress toward RHNA or lacks a compliant housing element. - Article 2: Multiple Unit and Mixed Use Objective Design Standards ' objective rules for building/site design that apply to qualifying projects. - Article 3: Community Care Facilities ' treats residential care facilities serving six or fewer persons as single-family uses consistent with state law, with corresponding permit procedures and updated definitions (including family). - Article 4: Transitional and Supportive Housing ' establishes ministerial processing criteria for supportive housing and updates state-aligned definitions. - Article 5: Emergency Homeless Shelters and Low-Barrier Navigation Centers ' relocates existing shelter standards into the new chapter and sets conditions for low-barrier navigation centers to be permitted in specified zones as a use by right if they meet objective standards.

Commissioners' questions and staff clarifications

Commissioners expressed concerns about the practical effect of higher minimum densities in Tracy. "A lot of the community and property owners feel that that minimum threshold's too high," one commissioner said, and asked whether projects would be financially viable given local market conditions. Staff replied that while the numeric changes are significant, they do not anticipate an immediate surge of new development solely because the code changes; financing and market viability remain crucial factors.

Commissioners also asked whether density averaging would allow unrelated developers to combine parcels informally. Staff clarified averaging is intended for parcels included in the same project application, not unrelated separate developments. On ministerial approvals, staff said qualifying projects that meet objective standards would be reviewed at the director level and would not generally come to the Planning Commission.

CEQA and next steps

For both ordinance packages staff recommended the commission find the code amendments exempt from environmental review under the common-sense CEQA exemption (CEQA Guidelines '15061(b)(3)) and under the narrow interpretation of the CEQA "not a project" guideline (CEQA Guidelines '15378) as they are regulatory text updates. Commissioners voted to recommend the ordinances to the City Council; both motions were seconded and passed by roll-call.

The amendments will return to the City Council for public hearing and final action. Staff said additional implementation items, including zoning-map rezoning of opportunity sites, a revised density-bonus ordinance (expected in December), and updates to the general plan circulation and safety elements, are forthcoming.

Commissioners requested staff provide a status update at a future meeting on a previously approved senior affordable project near Mount Diablo and A Street; staff agreed to follow up.