Amendment of the lnclusionary Housing Ordinance

The City of East Palo Alto has adopted Ordinance No. 06-2025 to amend Chapter 18.37 of the Municipal Code regarding Inclusionary Housing. This legislative action is designed to facilitate lot splits under Government Code Section 66411.7, also known as SB 9, by exempting such developments from the city's inclusionary housing requirements. The primary objective of this amendment is to incentivize housing development and support the construction of missing middle housing within the city. The ordinance provides specific exemptions for residential developments created under certain development agreements and those exempted by California Government Code Sections 66474.2 or 66498.1. Additionally, projects with issued building permits and substantial work completed in good faith prior to the effective date are also exempt. The ordinance was passed on September 16, 2025, and becomes fully effective thirty days after adoption. This action is noted to have no fiscal impact on the city and is exempt from California Environmental Quality Act review.