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Recognized for its lack of sidewalks, high-profile residents that wish to preserve a low profile, and gorgeous single-family properties, Atherton, California, is at a crossroads. Not solely is it dwelling to a few of Silicon Valley’s wealthiest, it’s additionally among the many area’s least various cities, with a number of the highest revenue per capita in your entire country-along with the nation’s costliest zip code. However the state is requiring it to undertake a brand new housing plan, and the billionaire investor and multimillionaire basketball star who name it dwelling don’t like that one bit.
Each eight years, the state of California requires all native governments to undertake housing plans, also called a housing ingredient. That is primarily a blueprint displaying how the jurisdiction plans to fulfill its housing requirement. In Atherton’s case, the state has put it on the hook for 348 new items over the following eight-year cycle—not such a giant ask, you’d suppose. This may require partial rezoning and a few improvement of multifamily housing. However Atherton’s earlier zoning prohibited any single-family dwelling from being constructed on lower than a 3rd acre of house.
“Issues are very totally different this cycle,” San Francisco peninsula housing advocate, Jordan Grimes, advised Fortune. “That is the primary cycle the place the housing ingredient actually has some tooth to it—there’s some penalties.” The distinction is obvious when taking a look at latest complaints over housing coverage voiced by two of Atherton’s most distinguished ultrawealthy residents: billionaire investor Marc Andreessen and NBA celebrity Stephen Curry. Each figures are usually related to progressive causes, on housing of their neighborhood they recognized as ultra-“NIMBYs,” or “not in my yard.” For as soon as, the state seems to be taking a stand. However the housing disaster in America, California, and the Bay Space is so dangerous that it’s instructive to take a look at what a measly victory that is for the pro-housing crowd.
Final 12 months, Andreessen, co-founder of enterprise capital agency Andreessen Horowitz and well-known for his early funding in Fb, wrote a letter to city officers objecting to multifamily overlay zones, which the city had meant to suggest in its housing ingredient. Andreessen had beforehand written an influential essay titled “It’s Time to Construct,” in 2020, principally condemning the “failure of motion” or “our widespread incapacity to *construct*,” as he put it.
“I’m penning this letter to speak our IMMENSE objection to the creation of multifamily overlay zones in Atherton,” he and his spouse wrote. “Please IMMEDIATELY REMOVE all multifamily overlay zoning initiatives from the Housing Aspect which shall be submitted to the state in July. They are going to MASSIVELY lower our dwelling values, the standard of lifetime of ourselves and our neighbors and IMMENSELY enhance the noise air pollution and site visitors,” The Atlantic reported.
This 12 months, Andreessen was joined by one among his neighbors, Golden State Warriors star Stephen Curry and his spouse, Ayesha Curry, earlier than Atherton adopted its housing ingredient and despatched it to the state for evaluation. It contains the rezoning of 23 Oakwood Boulevard, which is close to the Currys’ dwelling, to a multifamily zoning overlay—and the property proprietor intends to develop right into a 16-unit condominium constructing. “We hesitate so as to add to the ‘not in our yard’ (actually) rhetoric, however we wished to ship a observe earlier than as we speak’s assembly,” Curry and his spouse wrote, earlier than they went on to make one of many basic NIMBY complaints. “Security and privateness for us and our children continues to be our prime precedence and one of many largest causes we selected Atherton as dwelling,” native paper, The Almanac, reported earlier.
Earlier than the city adopted its housing ingredient, rezoning 23 Oakwood Blvd., the Currys requested that it’s ignored of the city’s housing ingredient, or within the very least, that the city construct taller fencing or some kind of landscaping to guard their privateness.
One explicit consequence of this cycle appears to be trigger for concern for the city and its residents: the “builder’s treatment.” If Atherton doesn’t have a compliant housing ingredient, a developer can are available and suggest a undertaking that doesn’t comply with native zoning requirements, though town would nonetheless need to approve it.
Grimes mentioned that you simply used to have the ability to submit a bare-boned, fundamental plan and the state would certify it. However due to California’s ongoing and worsening housing disaster, the state is now requiring native governments to have insurance policies in place that can enable housing to be constructed. The California Division of Housing and Neighborhood Growth isn’t asking for counties and cities to construct extra housing themselves, relatively simply to indicate there’s a plan in place.
“Cities need to have insurance policies in place to make sure that there’s no segregation occurring inside their borders,” he mentioned. “That turns into a giant drawback for a spot like Atherton, which is extraordinarily rich.”
Grimes added: “As a result of Atherton doesn’t enable something aside from single household properties, they primarily use zoning to maintain individuals out.”
As of final 12 months, 73% of Atherton’s residents are white, 18% are Asian, near 9% are Hispanic, and 1% are Black, in keeping with the U.S. Census Bureau.
Not like Curry, Andreessen’s (together with different residents who submitted complaints) outrage appeared to have labored and multifamily housing zoning overlays have been faraway from the proposal.
This time round it wasn’t really easy. The property of debate close to the Currys’ residence was submitted within the housing ingredient (after a number of complaints and hours of debate) and rezoned to permit for the development of as much as 16 items—with a 20% affordability requirement. However practically all different multifamily housing zoning was faraway from the housing ingredient, so it’s unclear whether or not the state will certify it.
Nonetheless there are variations in what Andreessen and Curry are against, Grimes advised Fortune. In that, Andreessen wished to take away all multifamily zoning overlay, primarily saying that he doesn’t need multifamily housing in Atherton. However Curry’s letter “was actually a really pure instance of nimbyism, I imply, he admits as a lot within the letter itself,” Grimes mentioned.
But it surely’s not simply Andreessen and Curry who’ve raised opposition (though in numerous circumstances) in opposition to the mere considered multifamily housing developments in Atherton—the city’s residents who aren’t thought-about as high-profile people aren’t enormous followers of such proposals.
Native realtor and Atherton resident, Dana Carmel, advised Fortune that residents are having a tough time with rezoning as a result of with extra items comes extra vehicles, site visitors, and security considerations, amongst different issues in a city that hasn’t seen a lot change.
“As a result of that is fully new to the city, I feel the residents wish to ensure that it’s properly thought out and is smart from an environmental and security standpoint,” Carmel mentioned.
She urged that ADUs (accent dwelling items) or Senate Invoice 9 lot splits might function potential options, including that though it may not be 16 extra items, it might be two to 4—a bridge between assembly the state’s standards to assist clear up the housing crunch, whereas retaining the “integrity and really feel of Atherton.”
And that’s precisely what Atherton appears to be doing. For its housing ingredient, Atherton is counting on the event of vacant tons, the subdivision of property utilizing SB 9, the event of recent items for Menlo Faculty and Menlo Faculty, the multifamily alternative at 23 Oakwood Blvd., and residential ADU developments.
Nonetheless, the state nonetheless has to certify the plan—and Grimes advised Fortune he’s not anticipating that to occur as a result of he thinks Atherton should do extra to fulfill the state’s necessities. Fortune’s requests for remark to Curry and Andreessen’s companies weren’t instantly returned.
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