Amendment of the lnclusionary Housing Ordinance

The City of East Palo Alto has amended Chapter 18.37 of its Municipal Code, known as the Inclusionary Housing Ordinance, to exempt lot splits approved under California Government Code Section 66411.7, commonly referred to as SB 9, from mandatory affordable housing requirements. This legislative change aligns the city’s housing policies with state goals to increase housing density and streamline the approval process for small-lot subdivisions and duplex development, thereby promoting “missing middle” housing options. The ordinance, adopted on September 16, 2025, and effective thirty days after adoption, removes the obligation for developers to provide below-market-rate units on properties undergoing ministerial lot splits under SB 9, while maintaining compliance with other state environmental and land use regulations. The action is supported by categorical exemptions under the California Environmental Quality Act (CEQA), specifically Sections 15378(d), 15061(b)(3), 15183, and 15195, which determine that the amendment does not constitute a project requiring environmental review due to its consistency with existing state laws and minimal potential for environmental impact. No financial outlay or procurement costs are associated with this regulatory change, as the city asserts there are no fiscal impacts from the exemption. The implementation of the ordinance falls under the jurisdiction of the City of East Palo Alto, with oversight administered by the City Attorney’s Office and approved by the City Council. John Le, the City Attorney, serves as the primary point of contact for administrative and legal inquiries, and all performance and administrative acceptance occur within the city limits of East Palo Alto, California, 94303. The amendment does not involve a federal contract, solicitations, contracting officers, or procurement mechanisms, and therefore lacks typical federal acquisition elements such as FAR clauses, line-item pricing, invoicing protocols, or contractor certifications. Instead, it is a municipal code modification driven by state housing mandates and local planning objectives, removing regulatory barriers to housing supply without introducing new contractual obligations, payment structures, or performance metrics. The change is designed to facilitate voluntary housing development under streamlined state law provisions rather than establish new contractual relationships or obligations with private entities.