Condo conversions in Palo Alto: the local rules

Each rule below links to the section of the Palo Alto Municipal Code it was read from, with the code text one click away (checked October 2026). General information, not legal advice.

What Palo Alto's code says

Palo Alto code What Palo Alto's code adds
Limits on conversions	1 below-market-rate rental unit for every 2 market-rate units converted. Applies: Required to apply when there is no vacancy surplus; tenants of at least two-thirds of units must also consent. § 21.40.050 · code text One below-market-rate rental unit must be provided for every two non-below-market-rate units to be converted.
Tenant approval	Tenants of at least two-thirds of the rental units must consent. Applies: Applies to applications filed with no vacancy surplus; one consent per unit, signed by all its tenants. § 21.40.050 · code text The tenants of at least two-thirds of the rental units in the rental housing complex consent to convert the rental housing complex to a community housing project in accordance with the following provisions: Consent forms must be signed within 90 days of first going to tenants. § 21.40.050 · code text The city must be notified on the date consent forms are first given to tenants, and the consent forms must be signed no later than ninety days from the date the consent forms are first given to the tenants;
Notice to tenants	New tenants must get written notice of the proposed conversion before any rent or deposit is accepted. Applies: Applies to units rented after consent forms first go to tenants. § 21.40.050 · code text No rental unit in a rental housing complex shall be leased or rented to any person after the consent forms are first given to tenants unless said person has been notified of the proposed conversion immediately prior to the acceptance of any rent or deposit from the prospective tenant in the following written form:
Vacancy-rate test	An application needs a vacancy surplus in the city's latest finding; conversions may exceed it by at most 40%. Applies: Unless the below-market-rate unit and two-thirds tenant consent conditions are met. § 21.40.050 · code text No application for consideration of a tentative or preliminary parcel map for a subdivision to be created from a conversion may be filed with the city unless there is a vacancy surplus as of the most recent determination pursuant to this chapter.

Who this affects

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Frequently asked questions

What happens to tenants when a Palo Alto building converts to condos?

Palo Alto's code: 1 below-market-rate rental unit for every 2 market-rate units converted. (Required to apply when there is no vacancy surplus; tenants of at least two-thirds of units must also consent.) (§ 21.40.050); Tenants of at least two-thirds of the rental units must consent. (Applies to applications filed with no vacancy surplus; one consent per unit, signed by all its tenants.) (§ 21.40.050).

Condo conversions in Palo Alto

What Palo Alto's code says

Who this affects

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