A proposed 100% affordable apartment building on Lot T, a city-owned surface parking lot at the corner of Lytton Avenue and Kipling Street in downtown Palo Alto, one block from the Palo Alto Caltrain station. Developer: Alta Housing (formerly Palo Alto Housing Corporation — the same nonprofit that proposed the Maybell Avenue senior housing killed by referendum in 2013). The project is the first to use Palo Alto's new program to build affordable housing on public parking lots, created to help the city meet its state housing mandates. The City Council in January 2025 selected Alta Housing to build 72 apartments on Lot T, with all seven council members supporting the project. The six-story building would include one-, two-, and three-bedroom apartments, with a large share reserved for extremely low-income households, and one ground-floor level of parking to offset some lost spaces. The formal planning application was filed in February 2026. In April 2025, land use attorney David Lanferman filed a lawsuit against the city on behalf of "Downtown Vibrancy," a coalition of downtown property owners. Their legal theory: because Lot T was funded through property owner assessments since the mid-1970s, the city cannot convert it to other uses without the owners' consent. No California court has ruled on this theory. The city's attorneys warned the lawsuit costs $2.75 million per year in rising construction costs and could make the project financially infeasible. A judge denied the city's request for a $500,000 bond from the plaintiffs, finding it would cause "undue economic hardship." As of May 2026, the lawsuit is still pending and the project has not broken ground. City is aiming for a council development agreement vote in mid-2026. If the lawsuit is not resolved, construction cannot begin until 2027-2028 at the earliest.
| Date | Event | What the record shows |
|---|---|---|
| January 1, 2024 | City Creates Parking Lot Affordable Housing Program | The City of Palo Alto creates a new program to build affordable housing on city-owned public parking lots, as part of the city's effort to comply with state housing mandates under its Housing Element. Lot T at Lytton Avenue and Kipling Street — one block from the Caltrain station — is identified as the first candidate. The program is a direct response to HCD's documented concerns about Palo Alto's housing production. Palo Alto Online: https://www.paloaltoonline.com/housing/2025/04/23/suit-aims-to-kill-plan-for-housing-on-parking-lot/ |
| January 1, 2025 | City Council Unanimously Selects Alta Housing for Lot T | The Palo Alto City Council votes unanimously — all seven members — to select Alta Housing (formerly Palo Alto Housing Corporation) as the developer for 72 units of 100% affordable housing on Lot T. All council members express strong support. Reckdahl: "Affordable housing — we have such demand for it. This is a great site. We want to make the most of this lot." Palo Alto Online: https://www.paloaltoonline.com/housing/2025/04/23/suit-aims-to-kill-plan-for-housing-on-parking-lot/ |
| April 23, 2025 | Downtown Vibrancy Files Lawsuit — Novel Parking Assessment Theory | David Lanferman files a lawsuit against the City of Palo Alto on behalf of Downtown Vibrancy, a coalition of downtown property owners, seeking to block the conversion of Lot T to affordable housing. The legal theory: because Lot T and other downtown parking facilities were funded through property owner assessments levied since the mid-1970s, the city cannot convert the lots to other uses without the property owners' consent. No California court has ruled on this theory. The lawsuit is filed three months after the council's unanimous selection of Alta Housing. Palo Alto Online: https://www.paloaltoonline.com/housing/2025/04/23/suit-aims-to-kill-plan-for-housing-on-parking-lot/ |
| August 12, 2025 | City Warns Lawsuit Could Make Project Financially Infeasible | Palo Alto Online reports that city attorneys have warned the Downtown Vibrancy lawsuit is costing at least $2.75 million per year in rising construction costs due to delay, and that if the lawsuit continues much longer, the project could become financially infeasible entirely. The city seeks a $500,000 bond from the plaintiffs to cover damages if they lose; a judge denies the request, finding it would impose "undue economic hardship" on the property owners. Alta Housing CEO Randy Tsuda: "Each year of delay increases project costs." Palo Alto Online: https://www.paloaltoonline.com/courts/2025/08/12/city-fears-legal-challenge-may-doom-affordable-housing-project/ |
| October 23, 2025 | City Pursues Expanded Program Despite Lawsuit | Despite the pending lawsuit, Palo Alto presses forward with the broader parking lot housing program. City staff present plans to the council for additional parking lot sites for affordable housing. The council remains unanimously supportive of Lot T and the expanded program. San Jose Spotlight: https://sanjosespotlight.com/palo-alto-seeks-more-housing-on-downtown-lot-project/ |
| December 15, 2025 | Attorneys Clash Over Evidence in Lawsuit | Both sides argue over the scope of evidence admissible in the Downtown Vibrancy lawsuit. The dispute centers on documentary evidence about the historical funding of downtown parking facilities and what legal rights, if any, assessment payments created for property owners. No ruling yet. The lawsuit continues to delay project timelines. Palo Alto Online: https://www.paloaltoonline.com/courts/2025/12/15/attorneys-clash-over-evidence-in-legal-dispute-over-downtown-housing/ |
| February 9, 2026 | Alta Housing Files Formal Planning Application | Alta Housing files its formal planning application for the six-story, 72-unit affordable apartment building on Lot T, despite the Downtown Vibrancy lawsuit still pending. San José Spotlight: Alta Housing "is pressing forward with a housing project in downtown Palo Alto despite a pending lawsuit." Tsuda: proceeding reflects Alta Housing's confidence in the project's legal foundation and the council's support. City aims for a development agreement vote in mid-2026. Construction cannot begin until the lawsuit is resolved or the city prevails in court. Palo Alto Online: https://www.paloaltoonline.com/housing/2026/02/09/developer-applies-for-housing-project-on-downtown-lot-despite-suit/ |
Rating 3 of 5. Multiple sources, including at least one primary record. Corrections: https://whokilledthebuilding.com/corrections.