San Mateo County requires on-site affordable units in rezoned areas, opposes Prop 43

Developers building in three newly rezoned high-density districts in unincorporated San Mateo County will now have to put every required affordable unit on site, after the Board of Supervisors tightened its inclusionary housing rules on Tuesday, Oct. 6.

What changed

The amendment applies to the R3-MD, PC-HD and TS-MU districts, which the county created on April 21 to allow dense multifamily housing under its state-mandated Housing Element, according to The San Mateo Record. Until now, the county could let builders meet their obligation in other ways, such as paying in-lieu fees, dedicating land or building the affordable homes somewhere else. Those options are gone in these districts.

The board also removed a provision that let some smaller rental projects and some ownership projects count moderate-income units toward part of the county's 20% affordability requirement. Every required affordable unit must now be priced for households at or below the low-income level.

Planning and Building Director Steve Monowitz wrote in a staff report that the changes bring the three districts into compliance with state law. Inclusionary rules elsewhere in unincorporated areas are unchanged.

Against Prop 43

Supervisors also voted to oppose Proposition 43 on the Nov. 3 statewide ballot. According to the state Legislative Analyst's Office, special taxes, meaning taxes dedicated to a specific purpose, already need two-thirds approval when local officials propose them, but recent court rulings let voter-proposed special taxes pass with a simple majority. Starting Jan. 1, 2027, Prop 43 would require two-thirds approval for new, increased or extended special taxes proposed by voters as well.

The LAO says local tax revenue could end up lower than it otherwise would be, though the size of the effect is unknown. County Executive Michael Callagy and Chief Legislative Officer Connie Juarez-Diroll recommended opposing it, saying it could make it harder to create or renew voter-approved local taxes.

For Prop 1

The board endorsed Proposition 1, the Veterans and Affordable Housing Bond Act, which would authorize $11.25 billion in state housing bonds. The resolution was sponsored by Supervisors Lisa Gauthier and Noelia Corzo. County housing staff estimate local projects already in the pipeline will need more than $90 million from the state's Multifamily Housing Program alone, with about 1,000 more homes in predevelopment still seeking public money. The county's Affordable Housing Fund has financed more than 5,100 affordable homes since 2012.