Planning Commission

New State Housing Laws to Reshape Santa Clara Development Near Train Stations

A wave of new state housing laws will dramatically limit Santa Clara's ability to review and shape residential development near its train stations, the city's assistant city attorney warned the Planning Commission on Wednesday.

Developers began contacting the city within two weeks of Governor Newsom signing AB 130, which creates a broad CEQA exemption for infill housing on parcels of 20 acres or less, the attorney told commissioners during a study session on 2025 state housing legislation.

"It's a big exemption. It will have very broad application. It's going to reduce the number of projects you see probably because so many projects now are going to be exempt from CEQA," the assistant city attorney said. "This is a large change in the law."

Transit Station Density Overrides

Perhaps more consequential for Santa Clara is SB 79, which overrides local density limits near train stations in eight Bay Area counties. The law allows up to 160 dwelling units per acre and 85-foot buildings adjacent to heavy rail stations and up to 140 units per acre near light rail stops — directly affecting areas around Santa Clara Station, Lawrence Station, and four Tasman Drive light rail stations.

The city can create an alternative transit-oriented development plan to shift up to 50 percent of the required capacity elsewhere, but must submit it to the state Department of Housing and Community Development by July 1.

Commissioner Lance Saleme raised concerns about whether existing sewer, power, and water infrastructure can support the increased density that infill projects will bring. Another commissioner questioned the adequacy of environmental review for housing near the airport, calling a recent CEQA report for 144 units approved near the runway "bogus" given that AB 130's air filtration requirements address freeway proximity but not airport pollution.

First Citywide Design Standards Adopted

In a separate action, the commission unanimously recommended City Council adopt the city's first Citywide Objective Design Standards, compiling existing rules from five specific plans into a single code chapter governing multi-family, townhouse, and residential mixed-use projects.

The standards take on added urgency as state laws increasingly exempt projects from public hearings, leaving only objective — not subjective — criteria for city review.

"All that the Development Review Officer can do is say yes, it meets the standards or, no, it doesn't meet the standards," the assistant city attorney said. "People come and testify. What can you do? All you can do is receive that testimony and then ignore it."

Mary Gristle, chair of Reclaiming Our Downtown, urged the commission to adopt the standards, citing a local shopping center where a developer bypassed city review by going directly to the state because Santa Clara lacked clear objective standards.

"Objective design standards are not a technical detail. They are one of the most important tools a city has to protect local control," Gristle said.

A second phase will address gaps in the standards through broader community outreach.

Historic Inventory Updated

The commission also unanimously recommended updating the city's Historic Resource Inventory to add 27 properties previously approved by City Council but not yet reflected in the General Plan, bringing the total to 372 listed properties.

Gristle offered a contrasting view on that item, cautioning against over-designation. "If everything is historic, then nothing truly is," she said.

Commissioners Priya Cherukuru, Qian Huang, Mario Bouza, Lance Saleme, and Chair Eric Crutchlow were present. Commissioners Yashraj Bhatnagar and Nancy A. Biagini were absent.