Palo Alto condo proposal is 7th to use new state housing law

The latest housing proposal in Palo Alto to take advantage of a new state law that encourages denser projects near public transit envisions six for-sale family condominiums in the Downtown North neighborhood.

The project at 340 Palo Alto Ave. abuts the city’s border with Menlo Park, but is still within the half-mile radius around the University Avenue Caltrain station, proximate enough to be eligible for Senate Bill 79. The state bill, which took effect July 1, increases the allowable height and density of housing projects within a half-mile of certain public transit stops, including Palo Alto’s three Caltrain stations.

The new state law is operating at full force in Palo Alto until local exemptions and mitigations kick in Thursday. The brevity of the SB 79 window has appeared to have the effect of spurring a number of housing applications — the one at 340 Palo Alto Ave. is the seventh to apply under the state law since July 1.

Currently, the site is host to a single-family home owned by Darel and Elu Chapman. The couple is behind the application to demolish the home and construct a four-story, six-condo building with nine ground floor parking spots. In the application materials, the Chapmans describe the project as having large condos with multiple bedrooms each and shared common spaces.

While none of the condos are planned as affordable, the Chapmans wrote in their application that they reserve the right to add one below-market-rate unit down the line.

Alongside the application is a letter from attorneys at Holland & Knight, a firm that has been representing a number of other SB 79 housing proposals in the city. Holland & Knight attorneys also threatened to bring litigation against the city for failing to speedily approve a towering apartment complex at the Mollie Stone’s Market on California Ave.

“The City is only permitted to reject the Project under these circumstances if there is a preponderance of evidence that the Project would have a significant, unavoidable, and quantifiable impact on ‘objective, identified written public health or safety standards, policies, or conditions,’” the Holland & Knight letter states. “However, the Legislature has affirmed its expectation that these types of conditions ‘arise infrequently.’”

The preliminary project plans indicate two condos on each of the upper three floors, with sizes around 1,500 square feet. It remains unclear how many bedrooms each condo will have, and if these will vary throughout the floors. The overall height appears to be 48 feet, according to project plans, where SB 79 allows up to 65 feet.

According to initial designs, Heather Young Architects are envisioning brick veneer on the exterior of the condos with painted metal railings on the balconies and an overall gray and white color scheme.

So far, the majority of the SB 79 projects filed in Palo Alto are focused on the northern half of the city, which has historically avoided the most significant impacts of state and local housing mandates. Many of the city’s own efforts to encourage apartments have tended south of Oregon Expressway and along El Camino Real, but the SB 79 “splash zones” stretch into historic, family residential neighborhoods such as Downtown North, Old Palo Alto and Professorville.

The city’s ordinances to limit SB 79 kick in July 16 and last through 2032, giving Palo Alto time to create an alternative plan for housing growth in other parts of the city. The pair of ordinances exempt historic properties and limit the SB 79 development standards such as height and density to half of what the law states — hence the rush to file projects before they kick in.

This story originally appeared in Palo Alto Weekly. Riley Cooke is a reporter at Palo Alto Weekly and Palo Alto Online focusing on city government.