Agda Pkt 2026.03.09 Joint SA PFA

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Page 4 of 13 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org *Percentages represent the proportion of units counted toward Redwood City’s RHNA obligation through 2025. Projection Period units are included with 2023 data. Figure 2 shows the number of housing units issued building permits for the years 2020 through 2025. While building permit activity in calendar year 2025 was above average at nearly 500 units relative to the previous five years when the annual average was 283 units, it is notable that 82% of the units permitted were in just two projects (557 E. Bayshore Road and 112 Vera Avenue). This suggests that, despite Redwood City’s deep pipeline of approximately 1,450 entitled2 housing units, developers of larger housing projects are not seeking building permits. Developers typically submit building permits for City review within the first year after entitlement (entitlements are valid for two years with a one-year extension permitted upon request by the applicant). Recently, however, residential projects are waiting longer to build or are even letting entitlements expire. Challenging market conditions that were present in 2024 at the local, regional, and state level, including elevated interest rates, high construction and labor costs, and uncertainty in the office market, continued to weigh at least partially on housing development activity in 2025. As noted in Table 3, Redwood City is currently behind in meeting the pro-rata share of its statutory RHNA obligation of 4,588 total units at this point in the RHNA cycle by almost 400 total units across income levels.3 In order to respond to market challenges and incentivize developers with entitled housing projects to pursue building permits, City Council took several actions in 2025 to help advance housing production, including the following: Affordable Housing Ordinance Incentive Program – In order to incentivize developers with currently entitled projects to pursue building permits, the City Council adopted a temporary Affordable Housing Ordinance Incentive Program on October 13, 2025, which makes certain residential projects eligible for a 25% reduction in their affordable housing requirements if they pull building permits by June 2027. City staff anticipate this will move almost 800 units to construction by 2027, including 120 affordable units. Elco Yards Approval Amendments – On November 24, 2025, the City Council approved amendments to the project approvals for ELCO Yards (Residential Parcels A & D) to facilitate development of 501 apartment units. The proposal modified how the project meets the Affordable Housing Ordinance requirements and density bonus approvals (including the requested concessions and waivers) as well as made minor design changes to facilitate project construction. 1548 Maple Street Development Agreement Amendments – On December 22, 2025, The City Council adopted an amendment to the project’s Development Agreement to provide additional time for project implementation. Additionally, the amendment provided impact fee credits for infrastructure improvements that will facilitate both this 131-townhome project as well as assist the adjacent 1580 Maple Street site develop as a 100% affordable housing project. 2 “Entitled” projects are those that have been determined to comply with zoning and other applicable requirements and received approval from the Planning Division. Most residential projects must receive an entitlement before they can apply for building permits. 3 Redwood City’s statutory RHNA obligation is 4,588 total units. When adopting its 2023-2031 Housing Element, the City set a target goal of reaching 150% of its RHNA obligation, or 6,882 units. The 150% target goal is a City policy, not a statutory State or City requirement. 7.A. - Page 4 of 63 11