Politics
Mixed-Use Zoning Ordinance Passes City Council, Set to Reshape Chinatown Commercial Blocks
The ordinance approved on July 7 will permit residential units above storefronts along Grant Avenue and Stockton Street, following patterns already in place in several peer cities.
How we reported this
The city council voted 8-3 on July 7 to enact the Mixed-Use Zoning Ordinance, which raises height limits from three to five stories in designated commercial corridors that include central Chinatown. The measure applies to properties currently restricted to ground-floor retail and upper-floor offices, opening those spaces to apartments and condominiums.
The vote follows the release of the 2025 Housing Element, which identified a shortfall of 15,000 units needed across the city by 2030. Council discussion centered on commercial vacancy rates that reached 12 percent in the Chinatown business district last year, prompting the timing of the zoning adjustment.
Comparison With Other Cities Under Similar Rules
This city now allows a 20 percent affordable-housing set-aside in exchange for the added height, matching the threshold used in two neighboring municipalities but exceeding the 15 percent requirement adopted last year by a city 80 miles to the south. The regional planning association report released in May 2026 placed this jurisdiction in the middle of the range for density bonuses among eight comparable urban cores.
Chinatown residents who work in nearby restaurants or markets could gain access to new units within walking distance of the 700 block of Grant Avenue, cutting daily transit costs that currently average 45 minutes each way on the 30 Stockton line. Property owners on Stockton Street may convert second and third floors that have stood empty since 2023, adding an estimated 180 units in the first phase of applications.
Budget Allocation and Implementation Timeline
The 2026 capital budget earmarks 4.5 million dollars for sewer and sidewalk upgrades tied directly to the zoning changes in the affected Chinatown blocks. That figure sits below the 7 million dollars allocated by one peer city for equivalent infrastructure work under its own mixed-use program.
Planning staff will publish application guidelines by August 15, with the first permits accepted under the new rules in January 2027. City records show 22 properties in Chinatown already pre-filed inquiries with the department ahead of the formal start date.