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A report detailing Menlo Park’s housing construction progress in 2024 reveals that the city is mostly meeting the production targets outlined in its state-certified housing element for the 2023-2031 housing cycle.
Under California law, every jurisdiction is required to submit an annual report to the California Department of Housing and Community Development to update the agency on the progress of its housing plans. This year’s report, presented to the Menlo Park Housing Commission at its March 5 meeting, delivered positive news for housing advocates.
As of the end of 2024, Menlo Park had already permitted 35.7% of the 2,946 units the state mandates the city build by the end of 2031.
“At the two-year mark of an eight-year cycle you’d want to see about 25% completion for (housing production) to be relatively on pace,” said Menlo Park Principal Planner Tom Smith in a presentation to the Housing Commission. “So, you can see that we are meeting or exceeding that target.”
Each city’s regional housing needs allocation is divided into income categories. According to Smith, the city is on track with most of the categories including the above moderate-, moderate- and low-income categories, though it has only permitted about 16% of the very low-income units required for this housing cycle.
“There’s still plenty of time to make up for that,” Smith noted.
In 2024, Menlo Park issued building permits for 176 new dwelling units, an increase over the 65 units that were permitted the previous year. City staff attributes the progress to several factors: 62 units permitted for MidPen Housing’s affordable veteran housing project, growing awareness of and interest in residential lot splits allowed under Senate Bill 9, and a record growth in accessory dwelling unit building permits.
A total of 68 permits for ADUs were issued by the city in 2024. With 131 ADUs permitted over the past two years, the city has surpassed its projected total of 85 ADUs for the 2023-2031 period. Recently, the city implemented a pre-approved ADU program where homeowners can choose from several ADU plans that have been pre-approved by city officials for compliance with building codes to streamline approval of the backyard units.
Because Menlo Park has made sufficient progress toward its regional housing needs allocation goals, it is one of only 47 municipalities in the state that is not subject to streamlined ministerial approval for development projects with at least 10% affordability. This means that the city retains more local control over development projects than the jurisdictions that have not made sufficient progress.
The Planning Commission and City Council will review the annual progress report on March 24 and 25 respectively. The city will submit the progress report to HCD before the state’s April 1 deadline.
Future housing production
Looking forward, the staff report highlighted the projects that have received entitlements from the city but have not yet received building permits — Meta’s Willow Village project (1,730 units), Capital Management’s 3705 Haven Ave. project (112 units), Sobrato’s 123 Independence Dr. project (432 units) and Greystar’s Menlo Flats project (158 units). Eighty-eight units were also approved by the Planning Commission for the Ravenswood City’s School District’s affordable housing development at 320 Sheridan Dr., but the project is now facing an appeal.
Units are only counted toward a city’s housing progress once they have received building permits. If all currently entitled projects are built as proposed, the city would exceed its housing allocation requirements for the current cycle.
How much of this housing “production” has actually been built and occupied, particularly in the lower income categories?