Approach to Addressing Oversized Vehicle Health and Safety Concerns

The City Council adopted a phased plan to address health and safety impacts of oversized vehicles (OSV). The growing number of people living in vehicles on streets has posed neighborhood challenges and health and safety concerns.  

Recently the City Council approved a new permit pilot program (to be implemented by early 2027) which designates portions of Coyote Hill Road and part of Embarcadero Road for OSV permit parking with eligibility and good neighbor requirements. The City Council also expanded residential OSV parking restrictions in an effort to help reduce OSV parking in impacted areas, while maintaining parking options to help meet parking demand.

Background 

About 73% of Palo Alto’s unhoused residents are living in vehicles – a comparatively high share relative to the Countywide rate of 53%. 

Phase I concluded in June 2026 and included the roll out of street cleaning requiring regular vehicle relocation, a ban on “vanlording,” and new restrictions for detached trailers. Recently in August, the City Council adopted Phase II OSV workplan items, seeking to enhance services to support community members living in vehicles and implementing pilot programs reducing the number of OSVs parking in the community.

The adopted permit pilot program will allow eligible OSV dwellers to park in designated segments on one of two streets. The City Council also approved direction to add red curbs near driveways in heavily impacted areas. These approaches seek to address ongoing neighborhood, business, public health, and safety impacts and advance a comprehensive approach in balancing health and safety concerns with services and resources for our unhoused community.

OSV Pilot Program - August 24, 2026 update

On August 24, the City Council discussed two (2) potential programs to address oversized vehicle impacts in the city. 

From the proposed pilot programs, City Council moved forward with the following: 

  • Implementing an OSV Parking Permit Pilot. The pilot program creates two (2) dedicated areas within the city (Coyote Hill Road as well as Embarcadero Road near the Regional Water Quality Control Plant) for eligible OSV dwellers to park. The program adds structure and allows for support services for individuals living in vehicles. 

  • Installing red curbs on the identified Phase I streets that have a heavy OSV presence. This will be a 10-foot red tip painted on either side of a driveway to help reduce visibility issues for safer entering/exiting driveways. 

Other City Council Direction:

  • Expansion of Residential Areas: Ordinance changes to have planned community and mixed-use zoning treated the same as other residential areas in Palo Alto,  

  • Pursue data collection to have a better understanding of the demographics of our OSV population, 

  • Explore Future Safe Parking Partnerships:  

  • Explore major employers’ willingness to accommodate workers who reside in OSVs on their sites, 

  • Continue to pursue safe parking solutions in collaboration with County, State, Federal, public/private partners, 

  • Explore any other sites that would be eligible for OSV parking in the greater downtown area.

Archived Steps, Staff Reports & Other Details on OSV Work

August 24, 2026 - Recommendation from the Oversized Vehicles (OSV) Ad Hoc Committee to Launch Two Pilot OSV Parking Programs, Including Adoption of and Ordinance Establishing an OSV Parking Permit Program, an Ordinance Amending the Municipal Fee Schedule to Add and OSV Parking Permit Fee, Resolutions Establishing OSV Parking Permit Districts on Embarcadero Road and Coyote Hill Road, a Resolution Prohibiting OSV Parking on Numerous Streets in Palo Alto; a Resolution Adding Related Penalties to the Administrative Penalty Schedule; and Related Amendments to the FY 2027 Operating and Capital Budget

June 6, 2026 - Status Report from the Oversized Vehicles (OSV) Ad Hoc Committee

February 23, 2026 - Status Report from the Oversized Vehicles (OSV) Ad Hoc Committee

January 27, 2026 - Oversized Vehicle Community Open House

October 20, 2025 - Policy and Services Committee Recommendation to the City Council to Approve a Phased Approach to Address Oversized Vehicle (Including Recreational Vehicle) Impacts, Particularly Relating to Individuals Living in Vehicles and Approve Budget Amendments in various funds.

August 25, 2025 - Discussion and recommendation to Council on prioritization of potential approaches to address oversized vehicle (including recreational vehicle) impacts, particularly relating to individuals living in vehicles.

OSV Permit Program

Qualifications to Participate

  • have a valid vehicle registration
  • have current vehicle insurance
  • must be income eligible
  • have ties to Palo Alto
  • sign a Good Neighbor Agreement
  • agree to work with case managers with the goal of transitioning to permanent housing
  • ability to pay a $15/month permit fee

Application to participate in the program will be available later this Fall.

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