September 29, 2025
*RE: Resolution No. 6884, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MENLO PARK ADOPTING REVISIONS TO THE BELOW MARKET RATE HOUSING PROGRAM
GUIDELINES*
Dear Mayor Combs, City Council Members, Justin Murphy, City Manager, Tom
Smith, City Planner and Housing Commission:
Based on the above referenced Resolution, I propose that:
1) the City Council’s Below Market Rate (BMR) percent rate of 15% is too
low, and
2) the penalty on Developers for not meeting the BMR rate is too lenient.
The penalty on developers who do NOT meet BMR of 15% of units financially
benefits the developers and the 15% BMR works against increased
affordability.
The penalty for having too few BMR units is 3% of the market value for each
missing unit. For example: a development of 100 units would mean 15 BMR
units. According to the City’s Resolution No. 6884, if no BMR units are
built, the penalty would be 3% x 15, or 45% of the price of one unit. That
seems a small penalty for the developer selling the 15 units at market
value.
Today’s Google AI search indicates: “The median price of condominiums in
Menlo Park, CA, varies by source and market segment, with Zillow
showing a 1-bedroom median
of $725,000 and Homes.com
listing a median
sale price of $1,114,500 for 2-bedroom condos as of late 2025”. Therefore,
the BMR rate would put the pricing at about $616,250 for a 1 bedroom and
about $947,325 for a 2-bedroom. However, is a one or two bedroom
condominium adequate for a young couple wanting to raise a family? The AI
search also indicates “*Median List Price:* Around $3.6 million for all
homes in the area, according to Altos Research” and the direction for
building “affordable” housing is focused on multi-storied condominiums.
I argue that the current model for inundating the Bay Area with
“affordable” housing does not reflect the true needs of the populace.
Additionally, it does not support truly “affordable” housing in general.
*The BMR Guidelines need to increase the affordable housing terms and
conditions regarding penalty and increase the benefits and percentage of
the BMR.*
