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Page 8 of 18 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />and height allowances provided under SB 79 without assembling multiple parcels. Recent State <br />legislative efforts to facilitate the development of small multifamily residential buildings on small <br />lots (often referred to as “Middle Housing” or “Missing Middle Housing”) have, thus far, seen <br />limited uptake in Redwood City and beyond. For example, since 2022 Redwood City has only <br />received building permit applications for 8 housing units under Senate Bill 9 (SB 9), which is <br />intended to facilitate small-scale residential intensification on single-family lots. Over the last <br />several years, most new residential development in Redwood City has occurred either on larger, <br />less constrained properties or through accessory dwelling units (ADUs). <br />Development Feasibility – Market conditions for residential development remain soft and <br />uncertain. Although market demand continues to be high, Bay Area construction costs and <br />interest rates also remain stubbornly high, which limits the availability of financing and, <br />ultimately, the amount of housing that is being constructed. <br />Taken together, these factors suggest that while SB 79 introduces additional theoretical development <br />capacity, the practical impact may be limited and concentrated on specific opportunity sites in existing <br />mixed-use areas with fewer site constraints where larger scale development is less impactful on <br />neighboring properties. <br />Implementation Approaches <br />SB 79 requires local jurisdictions to implement its development standards for eligible projects beginning <br />July 1, 2026. While the law establishes development standards and limits the applicability of certain local <br />regulations, it also provides jurisdictions with options to tailor implementation in response to local <br />conditions and context. Described below are four approaches to SB 79 compliance that are available and <br />applicable to Redwood City: <br />A.Implement Baseline SB 79 Obligations – On July 1, 2026, SB 79 baseline obligations became <br />legally enforceable and local jurisdictions need not take any additional action to bring it into <br />effect. Local jurisdictions may enforce its provisions “as is” by simply applying SB 79’s height and <br />density standards to eligible projects that invoke SB 79. <br />B.Temporarily Exclude Certain Sites from SB 79 Obligations – SB 79 allows jurisdictions to <br />temporarily exclude certain sites from its provisions through the adoption of a local ordinance. <br />This option is intended to address specific local constraints or policy priorities for a limited period <br />that ends no later than one year after the adoption of the 7th Cycle Housing Element. This option <br />allows jurisdictions to maintain existing development standards on selected sites while <br />conducting additional analysis or pursuing a more comprehensive strategy, such as a Transit- <br />Oriented Development Alternative Plan (as described below). If a jurisdiction adopts a temporary <br />exclusion ordinance but does not adopt a SB 79-compliant TOD Alternative Plan within a year of <br />the adoption of the 7th Cycle Housing Element, then the SB 79 standards would become effective <br />at that time. Local ordinances for temporary exclusion must be reviewed for compliance by the <br />California Department of Housing and Community Development (HCD). <br />8.A. - Page 8 of 97 <br />226