Menlo Park Debated Affordable Housing Project Shortfalls

The city council discussed significant funding gaps for three downtown housing developments proposed last December.

Updated on Oct. 2, 2026 in Child Care

Isometric editorial illustration depicting a multi-story apartment block nested with a concrete parking facility, representing urban housing infrastructure planning. — Menlo Park city council members are weighing potential taxes and new business fees to address a $19 million to $45 million shortfall in affordable housing projects. AI Illustration. Upload story photo >

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Should your city prioritize new affordable housing projects over preserving existing downtown parking spaces?

Menlo Park city council members recently examined a funding shortfall of $19 million to $45 million affecting three proposed affordable housing projects on city-owned parking lots. The developments, which aim to serve residents earning between 15% and 80% of the area median income, currently face financial strain due to requirements for replacing 556 existing parking spaces.

Why it matters

The funding gap stems from the city requirement that developers replace hundreds of parking spaces without municipal financial assistance. This financial hurdle complicates the potential construction of affordable units in a market where the 2025 area median income is set at $130,600 for individuals and $186,600 for families of four.

The three proposed developments must replace 556 city-owned parking spaces to move forward. Projects are targeted at residents earning 15% to 80% of the 2025 area median income of $130,600 for a single person or $186,600 for a family of four.

The players

Schmidt

Schmidt is a member of the Menlo Park City Council who opposes cutting subsidized housing units or parking requirements.

Taylor

Taylor serves on the Menlo Park City Council and has joined colleagues in opposing proposals to reduce project scope to close budget gaps.

Wise

Wise is a Menlo Park City Council member who advocates for maintaining project housing counts and parking standards despite the funding deficit.

Alliant Communities

Alliant Communities is a developer involved in one of the three proposed downtown housing projects.

Presidio Bay Ventures

Presidio Bay Ventures is a private firm partnering on the proposed housing developments in Menlo Park.

The details

Council members Schmidt, Taylor, and Wise have expressed opposition to reducing parking requirements or lowering the count of subsidized homes to address the budget deficit. Potential solutions discussed by the council include implementing new parking fees for business owners, local business fees, or a sales tax measure.

Three housing proposals were initially unveiled in December 2025.
The city council met to discuss the project funding shortfalls on September 29, 2026.
Voters will decide the outcome of Measure P on November 3, 2026.

Culture Shift

The proposed developments follow a trend of municipal efforts to integrate affordable housing into downtown districts, often competing with legacy land use like parking. These projects reflect a wider societal push to maximize urban space for residential growth while navigating the financial hurdles of public-private partnerships.

Residents may see changes to downtown parking costs or tax structures if the council opts to implement new fees to fund these projects. The ultimate construction of these units will depend on the upcoming vote on Measure P and the city's ability to reconcile its infrastructure requirements with developer financial constraints.

The takeaway

The Menlo Park council continues to navigate the complex trade-offs between maintaining public parking infrastructure and meeting affordable housing goals. Voters will play a definitive role in determining how the city manages these fiscal challenges in the November election.