Town planner outlines SB 79 implications; council directs staff to draft development standards

Town Planner Britney Bendix presented a staff summary of Senate Bill 79 (SB 79), explaining how the state law affects properties within a quarter mile of designated transit stops and what standards Atherton should expect to confront when the statute takes effect.

Bendix said SB 79 targets development near transit and sets statutory eligibility rules (projects must include at least five dwelling units and meet minimum density metrics discussed in the presentation). She explained the law’s average unit-size cap (1,750 net habitable square feet average), differences between gross and net habitable square footage, and that tiering in metropolitan regions affects which properties are included. A town map shown in the presentation identified seven parcels that fall in the town’s quarter-mile TOD area.

On mandated standards, staff summarized that the town may not impose a height limit below 75 feet for qualifying projects (with an adjacent-site allowance in some cases), and that local maximum density could not be capped below 120 dwelling units per acre for eligible projects; staff also explained floor-area-ratio (FAR) implications and density-bonus overlays that could increase allowable densities.

Councilmembers asked whether the town retains any design controls. Bendix and city legal staff said some local standards (setbacks, frontage improvements, lighting, parking management and design rules) can be required so long as they do not render projects infeasible relative to the statutory density, FAR and average unit-size requirements; any alternative development program or local standards must be reviewed and approved by the state Department of Housing and Community Development (HCD). Bendix recommended the town pursue an ordinance that establishes design and operational standards consistent with SB 79 while pursuing an alternative TOD program that could redistribute density to other sites, a process that would require public outreach and HCD approval and is unlikely to be completed before July 1.

Councilmembers indicated support for staff returning with proposed development standards and for initiating HCD review as soon as feasible. Staff emphasized that an interim approach—adopt minimum-compliant standards quickly and concurrently pursue an alternative TOD plan—was the most realistic timeline given HCD review requirements.

Next steps: staff will return with draft development standards for council review, begin public outreach if pursuing an alternative plan, and coordinate with HCD on timing and submittal details.