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Palo Alto approves 368-unit housing project on El Camino Real

Palo Alto approves 368-unit housing project on El Camino Real
In a decisive move to expand its housing stock and reshape its urban landscape, Palo Alto has approved a 368-unit apartment complex on El Camino Real, at the former location of a long-time restaurant. This development is one of the city’s most significant recent housing projects and reflects a shifting approach toward accommodating higher-density residential buildings along major corridors.

The project, located at 3150 El Camino Real and led by Acclaim Companies, symbolizes the city’s new planning vision for south Palo Alto. Officials have increasingly looked to El Camino Real as the focal point for large-scale housing, directing growth away from low-density neighborhoods and toward areas better suited for transit-oriented development. This vision was recently codified through changes to local zoning laws, which now establish a “housing focus zone” along the corridor. These changes were designed to streamline approval processes and better support feasible housing construction.

On July 11, the city’s planning department issued a letter to the developer granting tentative approval for the project. Unless an appeal is filed, this decision clears the way for construction to begin. What makes this development particularly notable is its origin under California’s builder’s remedy provision—a legal mechanism that allows developers to proceed with projects that don’t conform to local zoning, provided the municipality lacks a certified housing element. Before receiving state certification in August 2024, Palo Alto had been subject to this provision and received multiple applications under its terms.

Although the city has previously expressed hesitation toward builder’s remedy projects, this proposal was treated differently. Instead of pushing back, local leaders opted to revise the city’s zoning code to align with the project’s parameters. In May, the updated zoning standards were extended to both the north and south sides of Page Mill Road, further signaling a commitment to structured, higher-density housing.

At a meeting on May 28, the head of Acclaim Companies acknowledged the city’s updated zoning policies as instrumental in moving the project forward. He emphasized the value of regulatory clarity and flexibility in enabling developments that are both economically viable and aligned with community standards. A key component of the plan includes 74 below-market-rate units, which the developer described as one of the largest affordable housing contributions in Palo Alto’s history. These apartments will serve households earning between 50% and 80% of the area’s median income, providing opportunities for residents who are often priced out of the local market.

The development is designed as a seven-story building, measuring 79 feet in height, and includes a two-level underground garage with 455 parking spaces. The structure will also feature shared amenities such as a rooftop deck and a communal lounge, intended to enhance residential life and foster community.

The apartment breakdown includes 12 studios, 231 one-bedroom units, 97 two-bedroom units, and 28 three-bedroom units. This range of unit types is aimed at accommodating a broad demographic, from single professionals to families, reinforcing the city's objective of promoting inclusive and diverse housing.

With final approvals nearly complete, the developer has stated an intention to begin construction before the end of the year. Once built, the complex will represent a turning point in Palo Alto’s efforts to adapt to state housing mandates while preserving local planning values. The development not only reflects compliance with evolving state laws but also signals a more proactive and collaborative approach to addressing the city’s long-standing housing challenges.

By leveraging state tools, adapting local zoning, and encouraging mixed-income communities, Palo Alto is taking measurable steps toward achieving a balanced, future-ready urban fabric. The approval of this project on El Camino Real marks a significant stride in those efforts.

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