Palo Alto seeks 'pro-housing' designation after resisting growth - San Jose Spotlight

Palo Alto is applying to receive a pro-housing designation from California to mark a shift in how the city responds to regional housing needs amid resident opposition to new development. If approved, Palo Alto would join 74 other cities, including nearby Mountain View, Redwood City, and Los Altos, to access millions of dollars in state grants for additional housing projects. Since 2022, the state has provided $56 million in grant funding to pro-housing designated cities. The application requires explaining how local policies exceed state standards across four categories: favorable zoning and land use, streamlined permitting, cost reduction, and financial subsidies for affordable housing. Cities submit a self-scoring sheet and must score at least 30 points; Palo Alto scored 41. Preliminary state feedback has been positive.

"Palo Alto is seeking to earn a pro-housing designation from the state of California this year, a label that would mark a major shift in the way the city has responded to growing regional housing needs amid significant resident pushback to new development. If the city's application succeeds, Palo Alto would join 74 other cities - including neighbors Mountain View, Redwood City and Los Altos - in gaining access to millions of dollars in state grant funding for additional housing projects down the road."

"The application requires cities to explain how they are exceeding state standards for encouraging housing production through local policies, which are divided into four broad categories: favorable zoning and land use, streamlined permitting, cost reduction and financial subsidies for affordable housing. Cities then submit a draft self-scoring sheet based on these categories, with the option for "enhancement points" for policies that, for example, make additional effort to increase affordability."

"A score of 30 or higher is required to meet the pro-housing designation, and Palo Alto's self-scoring totaled 41 points. According to Knight, the state Housing and Community Development department has already provided preliminary review to Palo Alto's application and had positive feedback."

""Pursuing designation now is consistent with regional momentum and positions Palo Alto to compete more effectively for state housing funding alongside peer jurisdictions," the staff report states. Most grants are between $500,000 and $5 million, said Senior Project Manager Julia Knight, who prepared the application materials."

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