News

Menlo Park strikes out a third time with its housing element

State's letter, dated Aug. 29, says city's latest plan for future housing development still falls short

Menlo Park City Hall on April 16, 2020. Photo by Magali Gauthier.

Menlo Park’s third version of its housing element shows improvement, but it’s not there yet, according to the latest rejection letter from the California Department of Housing and Community Development (HCD) dated Aug. 29.

The housing element update is a state-mandated process that occurs once every eight years — and this time, the state is strongly enforcing the regulations. California requires cities to plan for future development with an eye toward balancing jobs and housing. Menlo Park's housing target, also known as the Regional Housing Needs Allocation (RHNA), says the city must plan for close to 3,800 net new housing units by 2031, and show how it will accomplish it in a document known as a housing element.

Menlo Park first submitted its housing element to the HCD over a year ago, in July 2022, but state housing officials didn't accept it and sent it back for revisions. A second attempt was shot down by the state in April. The third and most recent iteration of the housing element was submitted in June.

Among the issues that the state took with Menlo Park’s latest housing element version was a lack of displacement protections for residents and unequal housing opportunities on the east and west sides of the city.

The Belle Haven neighborhood on the east side of Menlo Park has historically faced institutionalized injustice that still affects the city’s layout, including racist redlining in the 1930s and blockbusting in the 1950s and '60s.

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Council member Drew Combs was the one holdout in the 4-1 vote that approved submitting the second version of the housing element to the state in January. Combs said that he believed the city could do more to spread affordable housing projects throughout the city, rather than concentrating them in Belle Haven.

There is certainly a disparity in where council members know affordable housing will be built, Combs said. "I thought there was an ability for council to address that better than they did. Does that mean that I agree with the stance that HCD is taking? I would say I do not."

Many of the HCD's complaints center around a lack of analysis of development sites and programs. Combs said he was mystified by the generic language in the HCD's letter, adding that the city had reached out to the department in the weeks prior to submitting the latest housing element to get guidance.

"I'm still left a little perplexed about what the city can actually do to receive the approval," Combs said.

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Cameron Rebosio
 
Cameron Rebosio joined the Almanac in 2022 as the Menlo Park reporter. She previously wrote for the Daily Californian and the Palo Alto Weekly. Read more >>

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Menlo Park strikes out a third time with its housing element

State's letter, dated Aug. 29, says city's latest plan for future housing development still falls short

by / Almanac

Uploaded: Wed, Aug 30, 2023, 4:08 pm

Menlo Park’s third version of its housing element shows improvement, but it’s not there yet, according to the latest rejection letter from the California Department of Housing and Community Development (HCD) dated Aug. 29.

The housing element update is a state-mandated process that occurs once every eight years — and this time, the state is strongly enforcing the regulations. California requires cities to plan for future development with an eye toward balancing jobs and housing. Menlo Park's housing target, also known as the Regional Housing Needs Allocation (RHNA), says the city must plan for close to 3,800 net new housing units by 2031, and show how it will accomplish it in a document known as a housing element.

Menlo Park first submitted its housing element to the HCD over a year ago, in July 2022, but state housing officials didn't accept it and sent it back for revisions. A second attempt was shot down by the state in April. The third and most recent iteration of the housing element was submitted in June.

Among the issues that the state took with Menlo Park’s latest housing element version was a lack of displacement protections for residents and unequal housing opportunities on the east and west sides of the city.

The Belle Haven neighborhood on the east side of Menlo Park has historically faced institutionalized injustice that still affects the city’s layout, including racist redlining in the 1930s and blockbusting in the 1950s and '60s.

Council member Drew Combs was the one holdout in the 4-1 vote that approved submitting the second version of the housing element to the state in January. Combs said that he believed the city could do more to spread affordable housing projects throughout the city, rather than concentrating them in Belle Haven.

There is certainly a disparity in where council members know affordable housing will be built, Combs said. "I thought there was an ability for council to address that better than they did. Does that mean that I agree with the stance that HCD is taking? I would say I do not."

Many of the HCD's complaints center around a lack of analysis of development sites and programs. Combs said he was mystified by the generic language in the HCD's letter, adding that the city had reached out to the department in the weeks prior to submitting the latest housing element to get guidance.

"I'm still left a little perplexed about what the city can actually do to receive the approval," Combs said.

Comments

new guy
Registered user
Menlo Park: Downtown
on Aug 30, 2023 at 4:58 pm
new guy, Menlo Park: Downtown
Registered user
on Aug 30, 2023 at 4:58 pm

I was unable to find the latest letter. Hopefully this will be posted by MP or available at on the HCD site soon.

The way the rules were written (and further interpreted along the way by HCD), there is probably little to no way for MP or towns that are similar in size and build-out, to be able to get HCD's sign-off. This I suspect is by design.

Only upside I can see is that our city planners, and elected officials get a good dose of the pain that MP citizens go through with our MP planning and building department such as: shifting requirements, multiple review letters with feedback that contains "generic language", review letters that add additional issues after the original issues were addressed, etc. Perhaps going through this pain will get them to review the policies towards its citizens and make changes for the better.




Mark Potter
Registered user
Menlo Park: Linfield Oaks
on Aug 31, 2023 at 7:20 am
Mark Potter, Menlo Park: Linfield Oaks
Registered user
on Aug 31, 2023 at 7:20 am

I'm perplexed why Menlo Park city leaders can't figure this out. Other towns and cities have. And please don't tell me it's because our city is "unique." That's just an excuse for not willing to make difficult - but necessary - changes.


Peter Carpenter
Registered user
Menlo Park: Park Forest
on Aug 31, 2023 at 1:11 pm
Peter Carpenter, Menlo Park: Park Forest
Registered user
on Aug 31, 2023 at 1:11 pm

From Atherton Town Manager's Monthly report:

"Of the 539 California jurisdictions (County, City and Town), 472 of them are in the current 6th Cycle of Housing Element Compliance process. The remainder are still within the 5th Cycle. Of the 472 jurisdictions, 276(58.47%) have been deemed IN compliance by the State. The
remaining 195 are at some stage of adoption or initial/subsequent draft and review by HCD. Some jurisdictional areas entered the process earlier and have had earlier compliance deadlines. The
State provides a Housing Element Review and Compliance Report on the HCD website."

Web Link


PH
Registered user
Woodside: Emerald Hills
on Aug 31, 2023 at 1:29 pm
PH, Woodside: Emerald Hills
Registered user
on Aug 31, 2023 at 1:29 pm

In San Mateo county only Brisband and RWC are in compliance. Santa Clara county is also largely out of compliance.

It might be worth looking at the RWC HE to deconstruct the magic.


pogo
Registered user
Woodside: other
on Aug 31, 2023 at 2:58 pm
pogo, Woodside: other
Registered user
on Aug 31, 2023 at 2:58 pm

There is no "magic." It's very difficult for smaller cities and towns, especially those that are largely built out and have little available vacant land, to comply with the HCD and RHNA allocations. Making it even more difficult are cities and towns with expensive land costs which make development of lower income residences very difficult.

As Peter Carpenter noted above, less than 60% of California cities and towns have approved Housing Elements. And we are now two years into the eight year cycle.


Steve Follmer
Registered user
Menlo Park: South of Seminary/Vintage Oaks
on Aug 31, 2023 at 7:41 pm
Steve Follmer, Menlo Park: South of Seminary/Vintage Oaks
Registered user
on Aug 31, 2023 at 7:41 pm

It is inaccurate to simply blame the City Council. Former councils have been doing just what Menlo Park citizens wanted them to do: blow off state housing mandates, for the last 33 years. Now the chickens have come home to roost. I hope we can get something approved, and use it to ward off the development proposed under the builders remedy, for the Sunset Magazine property, a project that would basically destroy Menlo Park.


Karl
Registered user
Portola Valley: Westridge
on Sep 1, 2023 at 10:36 am
Karl, Portola Valley: Westridge
Registered user
on Sep 1, 2023 at 10:36 am

The way to fix the housing issue is to stop voting for Blue fascists. The traffic congestion is already absurdly awful and our electrical/water grid is at the breaking point. How will the Peninsula look in ten years? Oh yeah, pretty much like downtown SF now. More people, mandated electric cars and appliances will definitely improve our quality of life and infrastructure. Please stop with the group think and end this madness!


PV Volunteer
Registered user
Portola Valley: other
on Sep 1, 2023 at 10:49 am
PV Volunteer, Portola Valley: other
Registered user
on Sep 1, 2023 at 10:49 am

Could it be that the HCD wanted "Builders Remedy" to apply all along?

Or was their set purpose to cause foment in nearly every small community in the state?

A no-compromise approach will crush some, and embolden others. Either way, it's not the California that anyone wants.


Joseph E. Davis
Registered user
Woodside: Emerald Hills
on Sep 1, 2023 at 11:48 am
Joseph E. Davis, Woodside: Emerald Hills
Registered user
on Sep 1, 2023 at 11:48 am

Amusingly, the housing allocations were based on pre-pandemic projections of continued significant growth in California's population (I think another ten million over a decade). Of course, California is now losing population.


PH
Registered user
Woodside: Emerald Hills
on Sep 1, 2023 at 4:26 pm
PH, Woodside: Emerald Hills
Registered user
on Sep 1, 2023 at 4:26 pm

@pogo "There is no "magic." It's difficult for smaller cities and towns, especially those that are largely built out and have little available vacant land, to comply with the HCD and RHNA allocations"

I don't think so.

I googled some of the boilerplate policy jargon that appears in the HCD response letter. "access to opportunity" and "promote housing mobility", etc.

Here is an one site: Web Link

It includes this account from the HCD's interaction with Lafayette.

"The second HCD comment referred to the city's "concentrated area of affluence" and proportion of households with high median income; both of which present mobility barriers to accessible housing choices and affordability. ... the comment means that even if they meet RHNA requirements, HCD is requiring jurisdictions - not just in Lafayette but in other areas with similar demographics - to provide more housing opportunities in single-family home neighborhoods."

It's the HUD/HCD policy euphemism that declares defines R1 neighborhoods as "presenting mobility barriers" and enables HCD to force higher zoning options in those neighborhoods.

I've shown elsewhere that 1.) HCD stated policy will recognize 30du/acre zoning in MP and 20du/acre zoning in PV as "suitable for low-income" families "without question" even though 2.) market rate housing prices at any density in those two communities preclude any but the most affluent.

To sum up. Even if you meet RHNA allocations in other sites, HCD has the discretionary power to force upzoning of expensive R1 neighborhoods.

Effectively this policy creates the legal pretext to dismantle R1 neighborhoods, pretends to house low-income families in "high opportunity" neighborhoods, but really creates housing opportunities for the highest paid tech workers.


Menlo Voter.
Registered user
Menlo Park: other
on Sep 1, 2023 at 6:19 pm
Menlo Voter., Menlo Park: other
Registered user
on Sep 1, 2023 at 6:19 pm

"... but really creates housing opportunities for the highest paid tech workers."

And big money in developers' pockets. Think maybe our officials in Sacto may be in developers' pockets?


Jonah Probell
Registered user
Menlo Park: Allied Arts/Stanford Park
on Sep 2, 2023 at 9:17 am
Jonah Probell, Menlo Park: Allied Arts/Stanford Park
Registered user
on Sep 2, 2023 at 9:17 am

California's budget is largely funded by quite high capital gains taxes paid by people in the state's wealthy suburbs who enjoy the nicenesses that such suburbs offer. It is conceivable that, by legislating increasing homogeneity between cities, the state will encourage the current high-tax paying residents to gradually leave the state and few new ones to move in. That might reduce the benefits that the state can provide to all its citizens in the long run.


MP Father
Registered user
Menlo Park: Central Menlo Park
on Sep 4, 2023 at 9:59 am
MP Father, Menlo Park: Central Menlo Park
Registered user
on Sep 4, 2023 at 9:59 am

Seems HCD is moving the goal posts, perhaps by design for high income areas as others in the thread suggest. Was this last requirement present in the other HCD letters?

Let's please, together, stop the reckless damage and vote out the progressives (starting with Newsom) who are driving companies and high tax paying individuals from the state and seem hell-bent on creating urban sprawl statewide and eliminating suburbs.


Menlo Lifestyle
Registered user
Menlo Park: Suburban Park/Lorelei Manor/Flood Park Triangle
on Sep 4, 2023 at 5:46 pm
Menlo Lifestyle, Menlo Park: Suburban Park/Lorelei Manor/Flood Park Triangle
Registered user
on Sep 4, 2023 at 5:46 pm

I sincerely hope this stupid neighborhood destroying will get people to wake up and stop reflexively pulling that D lever. I've voted Democrat for decades and no more. I won't vote Republican for national office but we need a change here in California when the YIMBY coalition from SF has more influence on Menlo Park than our own homeowners.


MP Father
Registered user
Menlo Park: Central Menlo Park
on Sep 6, 2023 at 10:35 am
MP Father, Menlo Park: Central Menlo Park
Registered user
on Sep 6, 2023 at 10:35 am

@MenloLifestyle well said, I concur.


pogo
Registered user
Woodside: other
on Sep 12, 2023 at 6:56 am
pogo, Woodside: other
Registered user
on Sep 12, 2023 at 6:56 am

If Sacramento officials are going to control OUR local neighborhood zoning, why even have local government?

California legislators know as much about our local neighborhood issues like traffic, commercial needs and school issues and we do about those same issues in Redding and Modesto and Sherman Oaks.


Jon
Registered user
another community
on Sep 17, 2023 at 10:30 pm
Jon, another community
Registered user
on Sep 17, 2023 at 10:30 pm

You can bet that HCD got back channel communication from those in Menlo Park who disagreed with the submission, perhaps from city council members.

The wacky comments that some of them made as if a rezone of Sharon Heights shopping center could lure 8 story development to the site are an illustration of being naive as to what development is likely. They said for example that it should have the same height limits as Willow Village. But Willow Village has decaying low value developments and so is ripe for development, and it is about 10 times as large as the Sharon Heights site is. If they can't tell the difference in the 2 situations, then that's the problem coming up with a Housing Element as well.


Peter Carpenter
Registered user
Menlo Park: Park Forest
on Sep 18, 2023 at 6:57 am
Peter Carpenter, Menlo Park: Park Forest
Registered user
on Sep 18, 2023 at 6:57 am

Here is an interesting alternative to our gridlock on housing:
"Gianforte said that the answer was obvious to him: Montana had a supply crisis. It needed a supply solution. His task force soon figured out how to get Montana more housing: Make it possible for folks to build housing units by right, rather than having every development go through a miserable, expensive process of negotiation. Encourage dense development in already dense areas. Cut red tape. Indeed, Montana already had pretty loose building regulations, and legislators loosened them even further—functionally banning single-family zoning and preventing towns and cities from adding onerous zoning policies, among many other changes and investments."

Web Link


Iris
Registered user
Menlo Park: Allied Arts/Stanford Park
on Sep 21, 2023 at 8:47 am
Iris, Menlo Park: Allied Arts/Stanford Park
Registered user
on Sep 21, 2023 at 8:47 am

HCD's letter seems to nit pick and come to conclusions that are not warranted. For example, they do not seem to want to understand that the area where Willow Village is surrounded by commercial buildings. The impact of taller, bigger buildings is very different there than at the Sharon Heights shopping center that is surrounded by residential housing (already multi-family, by the way). Instead, they attribute proposed zoning differences to racism.

It is astonishing that Menlo Park has paid consultants to help with the Housing Element, and they have spoken with HCD even before the first submission. Our council needs to dig into whether the consultants have failed to communicate well or whether HCD is essentially playing games by forcing cities like ours to guess how they would react to yet another submission while running out the clock so the Builders Remedy could kick in.

The Builders Remedy should be fought vigorously locally and at the state level. It allows projects that will greatly worsen the housing shortage and could truly harm the environment without the ability for cities to require mitigation measures. The proposed skyscraper on the site of Sunset Magazine is a case in point. Although proposing to provide 800 housing units, it also would add office, retail, and hotel space. The offices - alone - could bring nearly 1,900 workers, more than double the number of housing units. And the retail and hotel would bring even more workers without new housing for them either. The vast majority of the new workers would be commuters.

The Builders' Remedy is a cynical gift to developers who can side step accountability for the impacts of construction and habitation of their highly profitable buildings, both increasing the need for even more housing and harming the environment and quality of life for all.


PH
Registered user
Woodside: Emerald Hills
on Sep 21, 2023 at 10:58 am
PH, Woodside: Emerald Hills
Registered user
on Sep 21, 2023 at 10:58 am

@Iris " Instead, they attribute proposed zoning differences to racism."

I thought I read both HCD response letters somewhat carefully, but don't see any specific references to this point. Can you provide the link, and point me to the right area? I'd like to read the dialogue. I suspect that comment letters contain much disinformation relating to this. I have PRA'd them.

You're right about HCD making the city guess its standards.

HCD April: "The element should also analyze the land use controls including landscaping, parking, and floor area ration (FAR) requirements in the R-3 zone ..."

HCD August: The [revised] element ... discussed ...landscaping, parking, and FAR requirements .... However, the element must also include actions addressing LOT COVERAGE [my emphasis] in R-3 ... HCD finds that lot coverage for multifamily housing less than 50 percent is generally considered a constraint. The element must include or modify programs(s) committing to increasing lot coverage requirements in these zones.

Either HCD is moving the goal post and/or the consultant is not very helpful or the city is not meeting directly with the HCD reviewer to clarify requirements.

The (April) dialogue on fees and process and how they may impact affordability is troubling. As you know CEQA is already under attack. I wonder if we are heading to pure libertarian development policies where dense unplanned development is allowed to externalize its costs without any recourse whatsoever.

BTW, the Stanford office on ECR is asking $138sf/yr keeping MP at the 2nd highest office rent market in the US behind a single area of Manhattan. Downtown MP is now essentially the VC capital of the West, waiting to expand to SRI.

Will density really making MP "affordable"?


Menlo Voter.
Registered user
Menlo Park: other
on Sep 21, 2023 at 11:34 am
Menlo Voter., Menlo Park: other
Registered user
on Sep 21, 2023 at 11:34 am

"Will density really making MP "affordable"?"

NO. It will have exactly the opposite effect. Typical government bungling trying to push a progressive agenda without considering the actual likely outcomes.


pogo
Registered user
Woodside: other
on Sep 22, 2023 at 10:18 am
pogo, Woodside: other
Registered user
on Sep 22, 2023 at 10:18 am

Even if you believe that increasing the supply will lower prices - and it might - one of the biggest factors impacting the limited supply of homes is high interest rates. A lot of homeowners, especially those who might move by choice (to upgrade, downsize, be closer to family, or just want change) don't want or cannot afford to give up their 2% or 3% mortgage and move to a different place.

You can't build enough homes to overcome today's 7% and 8% mortgage rates.


pogo
Registered user
Woodside: other
on Sep 22, 2023 at 10:19 am
pogo, Woodside: other
Registered user
on Sep 22, 2023 at 10:19 am

Even if you believe that increasing the supply of homes will lower prices - and it might - one of the biggest factors impacting the limited supply of homes is high interest rates.

A lot of homeowners, especially those who might move by choice (to upgrade, downsize, be closer to family, or just want change) don't want or cannot afford to give up their 2% or 3% mortgage and move to a different place.

You can't build enough homes to overcome today's 7% and 8% mortgage rates.


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