AgdaPkt 2025.09.08 Joint SA PFA - Laserfiche WebLink

Browse Search

Page 2 of 12 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org Over the past several months, staff have been meeting with applicants involved in stalled development projects to better understand how the City might help move these projects forward. This outreach has shown that some projects or applications may require only limited flexibility to proceed. Staff focused primarily on two categories of projects: those that would result in the construction of new housing and those that would help activate existing commercial space. By offering a bit of temporary relief, the City may serve as a catalyst to advance hundreds of housing units and unlock millions of dollars in much- needed impact fees, including those for parks, sewer, transportation, and water projects. The purpose of this staff report is to seek approval for the City to adopt interim measures to support housing production and the activation of commercial space in response to current financial market constraints. ANALYSIS Affordable Housing Incentive Program Housing Element and City’s Regional Housing Needs Allocation (RHNA) In February 2023, Redwood City adopted its 2023–2031 Housing Element, which outlines the City’s Regional Housing Needs Allocation (RHNA) and identifies a range of programs and policies to address local housing needs. These actions help set the stage for private development of 4,588 new housing units during the eight-year planning period. In 2023 and 2024, building permits were issued for 831 housing units, approximately 18% of the City’s RHNA goal of 4,588 units. While housing production often ebbs and flows, approximately 25% of the eight- year Housing Element timeline has passed, so production at 18% of the goal represents a gap of 7%. Due to current market conditions, the City does not expect production to increase in the near term, raising concern about the possibility of falling short of the City’s RHNA goal. Current Housing Pipeline Redwood City’s current housing pipeline is extensive and reflects significant development interest. A project is considered part of the “pipeline” if it has received City approval but has not yet begun construction, or if an application has been submitted and is currently under review. As of the date of this report, the City’s pipeline includes 2,584 housing units, of which 954 are designated as affordable. While this pipeline is promising, it is important to note that units do not count toward the City’s RHNA goals until building permits are issued: d—units that are merely approved or proposed do not count.. The current economic climate—including high interest rates, rising construction costs, inflation, labor shortages, and now uncertainty around tariffs—has compounded the challenges facing developers. While many of these factors are outside the City’s control, some developers have indicated that even modest 10.A. - Page 2 of 31 211