Majority of renters overpaid, state says Majority of renters overpaid, state says (May 10, 2002)

Palo Alto housing blueprint under scrutiny

by Geoff S. Fein

State officials reviewing Palo Alto's housing element say 62.6 percent of the city's renters were overpaying rents back in 1990, almost a decade before the area witnessed a dramatic increase in rents and home prices.

The observation was part of a four-page list of recommended changes to the housing element given to the city by the state Department of Housing and Community Development.

Among the recommendations are that the housing element should include an inventory of land suitable for residential housing; further description of fees for development and design review; funding sources for development of affordable housing; governmental constraints in the way of building housing for the disabled; and an analysis of controls on residential development.

The city's planning staff now has one month to respond before it will present a final version of the housing element to the Planning and Transportation Commission on June 12.

The housing element, which is part of the city's Comprehensive Plan, is the chief policy document describing the city's housing needs, and the policies and programs the city will use to meet those needs. These include Palo Alto's fair share of the region's housing needs as defined by the Association of Bay Area Governments (ABAG). It is part of a state mandate that cities demonstrate an ability to provide adequate housing for low- to moderate-income residents.

Although the questions raised by state officials cover a variety of land use and development topics, addressing high rents was at the top of the list.

Information from the 1990 census showed that 62.6 percent of renters in Palo Alto were overpaying rents, of which 81.9 percent had incomes of less than $35,000. Also, 31.7 percent of homeowners were overpaying and 24.8 percent of that number had incomes of less than $35,000.

According to the Association of Bay Area Governments, Palo Alto has 674 overpaying low-income owners and 2,312 overpaying low-income renters.

State officials also asked the city to detail any city laws or ordinances that may be constraining the ability of developers to build housing for the disabled. The city needs to demonstrate its efforts to remove such constraints as: accommodating procedures for the approval of group homes; Americans with Disability Act retrofit efforts; an evaluation of the zoning code for ADA compliance; or other measures that provide flexibility in the development of housing for persons with disabilities.

Palo Alto's housing element should also be more specific about sites suitable for redevelopment, including such factors as market conditions and realistic capacity, according to state officials.

For example, officials pointed to the Sun Microsystems building on San Antonio Road. Although the Jewish Community Center is working to purchase the site for a new facility, plans also call for both senior and affordable housing to be built at the site.

"The element should discuss the status of its use and the viability of its redevelopment," the report commented.

State officials also wanted further information on infill sites -- pieces of land suitable for housing surrounded by other development.

In addition, state officials want further details and analysis of controls on residential development and their impact on residential districts. Such controls would include lot coverage, height restrictions, floor-area ratios and open-space requirements.

Even though state housing officials have asked for more than a dozen changes to Palo Alto's housing element, they did commend the city for a study that addresses regional and local housing needs as well as getting public participation and establishing a vision for increasing affordable housing in the city.

Planning Director Steve Emslie said the city had done a lot better than expected. He said it was a "positive review" and that the city "will have an element that will meet the state's requirement."

E-mail Geoff S. Fein at gfein@paweekly.com