Bay Area Real Estate Roundup: Fremont BART Homes, Prop. 1 and Menlo Park's Measure P

by Chris Renois

Election Day is Tuesday, Nov. 3, and two items on Bay Area ballots this week could shape how much housing gets built, and where. Meanwhile, BART moved ahead on a large housing plan in Fremont, regional air regulators are set to vote on gas water heaters, and Redwood City adopted new design rules for housing projects.

BART Picks a Development Team for 643 Homes at Fremont Station

On Oct. 22, the BART Board of Directors voted 9-0 to begin exclusive negotiations with Pacific Development and Affirmed Housing on a mixed-income project at the Fremont BART station, according to Coastside News and The Registry. The San Francisco Chronicle reports the plan calls for 643 homes, 176 of them affordable, along with ground-floor cafe space and a large public plaza. The homes would replace surface parking on the north side of the tracks, next to Tule Ponds, in the heart of downtown Fremont.

Reports differ on site size: the Chronicle cites about 12 acres, while Coastside News says BART owns nearly 8 acres for the first phase of a larger site. BART staff said the land is zoned for high-density housing and is part of Fremont's housing element.

This is an early step. An exclusive negotiating agreement gives one team the sole right to work out a deal with BART for a set period. Building heights were not included in the reports we were able to review. Pacific Development told the San Francisco Chronicle it hopes to win approval in 2027 and start construction in 2028.

Palo Alto Backs Prop. 1, the $11.25 Billion State Housing Bond

The $11.25 billion housing bond on this ballot is a statewide measure, Proposition 1, not a Bay Area regional bond. Palo Alto Online reports that the Palo Alto City Council voted on Oct. 5 to formally support Prop. 1. The council also endorsed Proposition 37, a loan program for middle-income home buyers.

According to CalMatters, Prop. 1 would let the state sell general obligation bonds for many kinds of housing. About $7.2 billion would go toward buying, building or renovating apartment buildings, mostly through low-interest loans to developers. Another $1.1 billion would help low- and moderate-income households buy homes, and $1.25 billion would go to home loans for veterans. The Legislative Analyst's Office estimates the bond would produce about 40,000 new rental units, and that repaying it would cost the state $500 million to $600 million a year for roughly 25 years.

State Warns Menlo Park About Measure P

Menlo Park voters will decide Measure P, a citizens' initiative that would require a citywide vote before the city redevelops its downtown parking lots for housing. The city has been planning up to 500 subsidized apartments on three of those lots, which together hold 556 parking spaces, according to the Palo Alto Daily Post.

In an Oct. 30 letter, the California Department of Housing and Community Development (HCD) said Menlo Park would have to amend its state-approved housing element if Measure P passes, The Almanac reports. According to the Daily Post, the letter notes that the city's 2023-2031 housing element lists eight downtown parking plazas as sites for at least 345 affordable homes. HCD warned that failing to keep a compliant plan could lead to fines of at least $10,000 a month or expose the city to the "builder's remedy," which lets qualifying projects bypass some local rules. Supporters of the measure, organized as Save Downtown Menlo, said the letter shows the city could move those homes to other sites through a standard update.

Air District Votes Nov. 4 on Gas Water Heater Rules

On Wednesday, Nov. 4, the Bay Area Air Quality Management District board is scheduled to vote on changes to Rule 9-6, which limits sales of new gas water heaters. According to a Mountain View Voice blog by Sherry Listgarten, the proposal moves the start date for standard gas water heaters from Jan. 1, 2027, to Jan. 1, 2028. It also pushes the date for tankless gas units to 2033 and exempts small heaters under 30 gallons. The proposal also adds exemptions for affordability and technical constraints.

The rule applies to new purchases. Homeowners can keep and repair their current gas water heaters until they need replacing, Calistoga Currents reports. If your water heater is getting old, it may be worth getting quotes for both gas and electric heat pump models now, and checking for local rebates.

Redwood City Adopts Objective Design Standards for Housing

The Redwood City Council unanimously approved an ordinance setting objective design standards for new residential and mixed-use projects, according to Redwood City Pulse. The nearly 60-page ordinance covers building placement, architectural features, open space, landscaping, parking structures and how buildings meet the street. It also supports bird- and flood-sensitive design. Green Foothills noted that the draft included bird-friendly building rules for projects on the bay side of U.S. Highway 101.

The standards are meant to speed up review and help the city meet state housing law. Applicants who want more design flexibility can still ask for a discretionary architectural review. Property owners planning a project can ask the Community Development Department how and when the rules apply.

Sources

Thinking about buying or selling in the Bay Area? Chris Renois can walk you through how these changes affect your home and your plans. Call or text (650) 512-9817, email chrisrenois@therealexperts.com, or get a free home value estimate.

This article is general information for Bay Area homeowners and buyers, not legal, tax or financial advice. Laws, rates and deadlines change; please confirm details with the original sources linked above or a qualified professional. Chris Renois, California DRE #02030130.