San Mateo is actively pursuing initiatives to address its housing needs, focusing on increasing affordable housing and updating policies to support development. Recent actions by the City Council and community organizations highlight both progress and ongoing challenges in this critical area.
City Council Approves Mixed-Use Housing Project
The San Mateo Planning Commission recently recommended approval of an eight-story mixed-use building at the former Kelly Moore Paints site in downtown. The project, known as Nazareth Vista, plans to offer 94 rental units, including 10 designated for very-low-income households, along with ground-floor commercial space and parking facilities. This development aims to replace existing one-story commercial buildings and a surface parking lot, contributing to the city’s efforts to increase housing availability.
Updates to Zoning Code and Below Market Rate Program
In alignment with the state’s Housing Element Law, the San Mateo City Council adopted Ordinance No. 2025-05, which amends the city’s Zoning Code and updates the Below Market Rate (BMR) Program. These changes are designed to facilitate the production of affordable housing by introducing alternative compliance options, updating development standards, and establishing minimum residential densities for mixed-use projects. These policy adjustments reflect the city’s commitment to meeting its regional housing needs allocation and supporting diverse housing opportunities.
Community Engagement on Proposed Sales Tax for Housing
City Manager Alex Khojikian has been engaging with residents through neighborhood meetings to discuss city priorities, long-term finances, and a proposed quarter-cent local sales tax. If approved, this tax could generate approximately $7 million annually, with funds potentially allocated to housing initiatives and other community services. These meetings aim to gather community feedback and ensure transparency in the city’s financial planning.
Challenges in State Funding for Housing
Despite local efforts, San Mateo County faces challenges in securing state funding for housing. The county has filed a lawsuit against the State of California, alleging that nearly $38 million owed to the county and its cities has been withheld. This funding shortfall poses risks to essential services, including health care, public safety, and affordable housing programs. Local leaders continue to advocate for the release of these funds to support the county’s housing and community service needs.
San Mateo’s proactive approach to housing development and policy reform demonstrates a commitment to addressing the city’s housing challenges. However, securing adequate funding and balancing community interests remain critical to the success of these initiatives.