Los Altos City Council
January 24, 2023

CITY COUNCIL MEETING -
AMENDED 1/20/23
AGENDA
7:00 PM - Tuesday, January 24, 2023
via Videoconference and In Person
Please Note: The City Council will meet in person as well as via Telephone/Video Conference Telephone: 1-669-444-9171 / Webinar ID: 865 2725 6820
https://losaltosca-gov.zoom.us/j/86527256820?pwd=alZ3MzdFdVFZdkt1Wk1HTXd5VkgrUT09 Passcode: 555735
TO PARTICIPATE IN-PERSON: Members of the public may also participate in person by being present at the Los Altos Council Chamber at Los Altos City Hall located at 1 N. San Antonio Rd, Los Altos, CA.

TO PARTICIPATE VIA VIDEO: Follow the link above. Members of the public will need to have a working microphone on their device and must have the latest version of ZOOM installed (available at https://zoom.us/download). To request to speak, please use the “Raise hand” feature located at the bottom of the screen.

TO PARTICPATE VIA TELEPHONE: Members of the public may also participate via telephone by calling the number listed above. To request to speak, press *9 on your telephone.

TO SUBMIT WRITTEN COMMENTS: Prior to the meeting, comments on matters listed on the agenda may be emailed to [email protected]. Emails sent to this email address are sent to/received immediately by the City Council. Please include a subject line in the following format:

PUBLIC COMMENT AGENDA ITEM ## - MEETING DATE
Correspondence submitted in hard copy/paper must be received by 2:00 PM on the day of the meeting to ensure distribution prior to the meeting. Correspondence received prior to the meeting will be included in the public record.

Public testimony will be taken at the direction of the Mayor, and members of the public may only comment during times allotted for public comments.

AGENDA

CALL MEETING TO ORDER

ESTABLISH QUORUM

PLEDGE ALLEGIANCE TO THE FLAG

REPORT ON CLOSED SESSION
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CHANGES TO THE ORDER OF THE AGENDA

PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA
Members of the audience may bring to the Council's attention any item that is not on the agenda. Speakers are generally given two or three minutes, at the discretion of the Mayor. Please be advised that, by law, the City Council is unable to discuss or take action on issues presented during the Public Comment Period. According to State Law (also known as “The Brown Act”) items must first be noted on the agenda before any discussion or action.

1. PC, Items not on Agenda

SPECIAL ITEMS
A. Introduction of New Capitol Improvement Projects Manager Franklin Wong B. Recognition of Emergency Workers
C. Recognition of Outgoing 2022 Commissioners
D. Climate Action and Adaptation Plan Award
E. Proclamation Celebrating Martin Luther King Jr. Day
F. Proclamation Celebrating 2023 Lunar New Year

CONSENT CALENDAR
These items will be considered by one motion unless any member of the Council or audience wishes to remove an item for discussion. Any item removed from the Consent Calendar for discussion will be handled at the discretion of the Mayor.

1. Response to the Santa Clara County Civil Grand Jury Report: Show Me the Money:

Financial Transparency Needed: Approve the draft response to the Santa Clara County Civil Grand Jury Report: Show Me the Money: Financial Transparency Needed (J. Maginot)

2. Minutes: Approve Minutes of the City Council Regular Meeting of January 10, 2023. (A.

Rodriguez)

PUBLIC HEARINGS

3. Sixth Cycle Housing Element 2023-2031: A Resolution of the City Council of the City of Los Altos, California, adopting the Mitigated Negative Declaration (MND), based on its independent analysis that MND was completed in compliance with the California Environmental Quality Act (CEQA); find that there is no substantial evidence that the project will have a significant effect on the environment; and that the MND reflects the City’s independent judgment and analysis; approving the 2023-2031 Housing Element of the City’s General Plan; and Authorizing the Development Services Director to submit the Housing Element to the California Department of Housing and Community Development (HCD) for its consideration and certification.

DISCUSSION ITEMS
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4. Affirm 2023 Council Commission and Committee Assignments: Pursuant to City Council Norms and Procedures, Affirm Mayor appointment to the Santa Clara County Library District JPA

INFORMATIONAL ITEMS ONLY

5. Tentative Council Calendar

6. Independent Intake Official (IIO) Yearly Report

COUNCIL/STAFF REPORTS AND DIRECTIONS ON FUTURE AGENDA ITEMS

ADJOURNMENT
(Council Norms: It will be the custom to have a recess at approximately 9:00 p.m. Prior to the recess, the Mayor shall announce whether any items will be carried over to the next meeting. The established hour after which no new items will be started is 11:00 p.m. Remaining items, however, may be considered by consensus of the Council.)

SPECIAL NOTICES TO THE PUBLIC
In compliance with the Americans with Disabilities Act, the City of Los Altos will make reasonable arrangements to ensure accessibility to this meeting. If you need special assistance to participate in this meeting, please contact the City Clerk 72 hours prior to the meeting at (650) 947-2610.

Agendas Staff Reports and some associated documents for City Council items may be viewed on the Internet at http://www.losaltosca.gov/citycouncil/online/index.html.

All public records relating to an open session item on this agenda, which are not exempt from disclosure pursuant to the California Public Records Act, and that are distributed to a majority of the legislative body, will be available for public inspection at the Office of the City Clerk’s Office, City of Los Altos, located at One North San Antonio Road, Los Altos, California at the same time that the public records are distributed or made available to the legislative body.

If you wish to provide written materials, please provide the City Clerk with 10 copies of any document that you would like to submit to the City Council for the public record. 3 PUBLIC CORRESPONDENCE

The following is public correspondence received by the City Clerk’s Office after the posting of the original agenda. Individual contact information has been redacted for privacy. This may not be a comprehensive collection of the public correspondence, but staff makes its best effort to include all correspondence received to date.

To send correspondence to the City Council, on matters listed on the agenda please email [email protected]
4 Agenda Item # 1.

From: Bill Hough
To: Public Comment; City Council
Subject: Public comment on items not on the January 24 agenda Date: Sunday, January 22, 2023 3:39:00 PM
In the January 12 issue of the Palo Alto Daily Post, Braden Cartwright reported that, for questionable reasons, removed Council Member Lee Eng from several regional boards and committees. It is difficult for this resident to believe that is not payback for Lee Eng’s refusal to bow to the woke mob in 2021.

Because of the majority’s vindictiveness, the residents are hurt by the loss of intuitional memory, as new board members waste time on a learning curve. This could have avoided if Lee Eng had not been removed from her assignments. Shame on you.

Bill Hough
Los Altos resident and taxpayers
5 Agenda Item # 1.
6 Agenda Item # E.
7 Agenda Item # F.

Reviewed By:

City Manager City Attorney
GE
Finance Director
JH JD

AGENDA REPORT SUMMARY
Meeting Date: January 24, 2023
Subject Response to the Santa Clara County Civil Grand Jury Report: Show Me the Money: Financial Transparency Needed
Prepared by: Jon Maginot, Assistant City Manager
Approved by: Gabriel Engeland, City Manager
Attachment(s):

1. Response to Santa Clara County Civil Grand Jury Report: Show Me the Money: Financial Transparency Needed

2. Santa Clara County Civil Grand Jury Report: Show Me the Money: Financial Transparency Needed
Initiated by:

Staff
Previous Council Consideration:

None
Fiscal Impact:

None
Environmental Review:

Not applicable
Policy Question(s) for Council Consideration:
 Do the responses contained in the attached report adequately address the Findings and Recommendations contained in the Santa Clara County Civil Grand Jury Report: Show Me the Money: Financial Transparency Needed?
Summary:
 The 2022 Santa Clara County Civil Grand Jury has reviewed the wording of various ballot questions and provided its findings and recommendations to the City. A response to the findings and recommendations of the Grand Jury is required by State law. 8 Agenda Item # 1.

Subject: Response to the Santa Clara County Civil Grand Jury Report: Show Me the Money:

Financial Transparency Needed
January 24, 2023 Page 2
Staff Recommendation:

Approve the draft response to the Santa Clara County Civil Grand Jury Report: Show Me the Money: Financial Transparency Needed
9 Agenda Item # 1.

Subject: Response to the Santa Clara County Civil Grand Jury Report: Show Me the Money:

Financial Transparency Needed
January 24, 2023 Page 3
Purpose
Review and approve or modify the draft responses prepared by staff to the Santa Clara County Civil Grand Jury Report: Show Me the Money: Financial Transparency Needed.

Background
In accordance with Section 933 of the California Penal Code, public agency governing bodies are required to comment on Grand Jury Findings and Recommendations no later than 90 days after the Grand Jury submits a final report.

The Santa Clara County Civil Grand Jury submitted its report entitled Show Me the Money:

Financial Transparency Needed on December 14, 2022.

Discussion/Analysis
The 2022 Santa Clara County Civil Grand Jury has reviewed financial practices of the County’s General Law Cities as they relate to Government Code Section 41004. The City’s draft response is included as Attachment 1.

Recommendation
The staff recommends Council approve the draft response. 10 Agenda Item # 1.
1 North San Antonio Road
Los Altos, California 94022-3087

M E M O R A N D U M
DATE: January 24, 2023
TO: The Honorable Beth McGowen, Presiding Judge, Santa Clara County Superior Court
FROM: Gabe Engeland, City Manager
SUBJECT: RESPONSE TO THE 2022 SANTA CLARA COUNTY CIVIL GRAND JURY REPORT “SHOW ME THE MONEY: FINANCIAL TRANSPARENCY
NEEDED”
The City of Los Altos submits the following specific responses as requested on page 15 of the 2022 Santa Clara County Civil Grand Jury Report “Show me the money: Financial transparency needed” related to the Findings and Recommendations set forth in the Report.

Findings and Recommendations
Finding 1:

The City of Los Altos is not submitting monthly treasurer’s reports in compliance with California Government Code Section 41004.

Response 1:

Respondent, City of Los Altos, disagrees with the finding that the City is not in compliance with California Government Code section 41004.

Respondent notes that Government Code Section 41004 does not specify the manner in which the city treasurer is to provide the treasurer’s report. Respondent clarifies that the City does not contend that Government Code Section 37208 indemnifies it from complying with Government Code Section 41004; rather, the City referred to Section 37208 during the investigation as providing alternate means for the City Council to audit and ratify warrants.

Respondent also notes that during the Civil Grand Jury’s investigation, the City informed the Grand Jury that while the City believes it is in compliance with Government Code Section 41004, the City is willing to provide the report in the format the Grand Jury recommends. 11 Agenda Item # 1.

Finally, respondent notes that while the Grand Jury appears to have been willing to work with another city to produce reports in a form and manner desired by the Grand Jury City of Los Altos was not afforded the same opportunity, which is disappointing given the City’s stated willingness to do the same.

Recommendation 1:

The City of Los Altos should comply with Government Code section 41004 by submitting monthly treasurer’s reports that include monthly disbursements, receipts, and fund balances and by filing those reports with the City. This recommendation should be implemented by March 15, 2023.

Response 1:

Respondent, City of Los Altos, finds the recommendation is not warranted; however, as stated previously in the City’s response to Finding 1 and as indicated by the City to the Grand Jury, City is willing to provide reports in the manner desired by the Grand Jury.

Finding 2:

The City of Los Altos does not produce treasurer’s reports in compliance with California Government Code section 41004. The reason for non-compliance was that the City of Los Altos’ financial policy does not require the preparation and submission of treasurer’s reports. It is an erroneous belief that internal policies excuse compliance with Government Code Section 41004.

Response 2:

Respondent, City of Los Altos, disagrees with the finding that the City is not incompliance with Government Code Section 41004. Respondent further disagrees with the finding that the City believes that internal policies excuse compliance with any State Law.

Recommendation 2:

The City of Los Altos should amend its financial policy to require that monthly treasurer’s reports be prepared and submitted in accordance with California Government Code section 41004 by March 15, 2023.

Response 2:

Respondent, City of Los Altos, finds the recommendation is not warranted. The City of Los Altos will not update its financial policy as recommended. 12 Agenda Item # 1.

Release date here Page 0 of 22
SHOW ME THE MONEY:

FINANCIAL TRANSPARENCY NEEDED
2022 Santa Clara County
Civil Grand Jury
December 14, 2022
13 Agenda Item # 1.

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TABLE OF CONTENTS
GLOSSARY AND ABBREVIATIONS ...................................................................................... 2 SUMMARY ................................................................................................................................... 3 BACKGROUND ........................................................................................................................... 4 METHODOLOGY ....................................................................................................................... 5 INVESTIGATION........................................................................................................................ 6 CONCLUSION ........................................................................................................................... 11 FINDINGS AND RECOMMENDATIONS ............................................................................. 12 REQUIRED RESPONSES......................................................................................................... 15 APPENDIX ................................................................................................................................. 16 REFERENCES............................................................................................................................ 19 14 Agenda Item # 1.

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GLOSSARY AND ABBREVIATIONS
Government Code, Section
41004
California Government Code section 41004 states:
“Regularly, at least once each month, the city treasurer shall submit to the city clerk a written report and
accounting of all receipts, disbursements, and fund
balances. The city treasurer shall file a copy with the legislative body.”
Treasurer’s Reports The reports required by Government Code section 41004 may have various styles and titles. For purposes of this report, the Civil Grand Jury will refer to these reports throughout as "treasurer's reports."
Charter City Article XI, section 3(a) of the California Constitution authorizes the adoption of a city charter and provides that the charter has the force and effect of state law. Article XI, section 5(a), the "home rule" provision, grants to charter cities the ability to govern over "municipal affairs."
There are six charter cities in Santa Clara County: San José, Palo Alto, Santa Clara, Sunnyvale, Gilroy, and
Mountain View.

General Law City A general law city may only have a form of government authorized by state general law. A city that has not
adopted a charter is bound by the state’s general laws even with respect to municipal affairs.

There are nine general law cities and towns in Santa Clara County: Los Altos, Los Altos Hills, Los Gatos, Milpitas, Campbell, Monte Sereno, Cupertino, Saratoga and
Morgan Hill. The scope of this investigation is limited to general law cities.

GAAP Generally Accepted Accounting Principles: a set of accounting rules and standards established by the
accounting industry.
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SUMMARY
General law cities in California are required to comply with California Government Code section 41004 (Section 41004), which states, “at least once each month, the city treasurer shall submit to the city clerk a written report and accounting of all receipts, disbursements, and fund balances.

The city treasurer shall file a copy with the legislative body.” The benefit of the law is to ensure financial accountability and public transparency as well as to foster better fiscal affairs. Treasurer's reports provide city councils with timely and accurate financial information necessary to make reliable and sound decisions.

The 2022 Santa Clara County Civil Grand Jury (Civil Grand Jury) found that there is widespread noncompliance with this state requirement throughout Santa Clara County (County) by the general law cities. As of the date of this report, six of the nine general law cities1 in the County are noncompliant with this state law: Los Altos, Los Altos Hills, Los Gatos, Milpitas, Campbell, and Monte Sereno. Additionally, the City of Cupertino was initially noncompliant until the city took corrective action during the Civil Grand Jury’s investigation. The City of Saratoga and City of Morgan Hill were the only two cities compliant prior to the investigation.

Based on responses from city officials, the Civil Grand Jury determined that there is a widespread misunderstanding among these general law cities in the County regarding Section 41004 reporting requirements. The Civil Grand Jury recommends that the noncompliant cities – Los Altos, Los Altos Hills, Los Gatos, Milpitas, Campbell, and Monte Sereno – comply with Section 41004. 1 The Town of Los Altos Hills and the Town of Los Gatos are general law cities. 16 Agenda Item # 1.

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BACKGROUND
The State Legislature established the office of city treasurer by enactment of California Government Code, Title 4 - Government of Cities, Division 3 - Other Officers, Chapter 3 - City Treasurer. The statutory duties for city treasurers may generally be found in the following sections:

Section 41001: The city treasurer shall receive and safely keep all money the treasurer receives.

Section 41002: (a) The city treasurer shall comply with all laws governing the deposit and securing of public funds and the handling of trust funds in their possession; and (b) if the city has issued bonds, the city treasurer shall use a system of accounting and auditing that adheres to generally accepted accounting principles.

Section 41003: The city treasurer shall pay out money only on warrants signed by legally designated persons.

Section 41004: Regularly, at least once each month, the city treasurer shall submit to the city clerk a written report and accounting of all receipts, disbursements, and fund balances.

The city treasurer shall file a copy with the legislative body.

Pursuant to California Government Code section 36502, the city treasurer is an elective office.

California Government Code section 36508 and California Elections Code section 9222 permit cities to submit to the electors the question of whether the city treasurer position should be an appointive office. In that instance, the financial duties assigned by the state statutes to the city treasurer are transferred from an elected treasurer to an appointed officer if approved by the electorate. Only one general law city in the County, Morgan Hill, continues to have an elected city treasurer, who serves for four years. All other cities in the County have opted to assign city treasurer duties to senior administrative staff.
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METHODOLOGY
Upon receiving a complaint regarding Government Code section 41004 noncompliance in Cupertino, the Civil Grand Jury decided to expand the investigation to review all nine general law cities in the County: Los Altos, Los Altos Hills, Los Gatos, Milpitas, Campbell, Monte Sereno, Cupertino, Saratoga, and Morgan Hill. From March to August 2022, the Civil Grand Jury began the process by polling these Cities to determine if they produced treasurer’s reports.

The Civil Grand Jury took the following steps:
• Contacted a total of 22 officials across nine cities who were responsible for tasks relevant to the topic of this report.
• Reviewed relevant sections of the California Government Code, California Elections Code, and examined the ordinances, policies, and memos of each city relevant to their city treasurer duties.

• Reviewed published city council and city committee agendas relevant to Section 41004. • Reviewed other relevant city documents, including but not limited to financial audits, city organizational charts, and relevant job descriptions.
• Verified the six most recent treasurer’s reports of each city, if submitted.

The Civil Grand Jury inspected the contents of each report to verify the inclusion of the required elements: monthly disbursements, receipts, and fund balances. The Civil Grand Jury also determined whether the reports were published at least once each month to be compliant with Section 41004.

It should be noted that most cities do not call their report “Treasurer’s Report.” Appendix A provides links to examples of compliant Section 41004 reports, showcasing variations in terms of report name, style, layout, and appearance.

The Civil Grand Jury used the 2011-2012 Solano County Civil Grand Jury report entitled “City Treasurer Functional Review” as a reference for this report. 18 Agenda Item # 1.

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INVESTIGATION
All interviews and email correspondence were designed to determine if general law cities complied with Section 41004. To be deemed compliant, a city must produce a financial document at least once each month that details all of the following: monthly disbursements, receipts, and fund balances – and must be filed with the legislative body. Six months of reports were requested to verify an existing track record. Data collection and verification took place from March to July 2022.

The results of this investigation are depicted in Table 1 below.

Table 1. Section 41004 Compliance Among Nine General Law Cities City/Town Compliant Noncompliant
Los Altos X
Los Altos Hills X
Los Gatos X
Milpitas X
Campbell X
Monte Sereno X
Cupertino X*
Saratoga X
Morgan Hill X
*During the investigation, Cupertino started complying with Section 41004.

There are a number of reasons for cities’ noncompliance:
• Some cities were under the impression that the Section 41004 mandate was a discretionary guideline.
• Others adopted the practice of other cities that did not produce the requisite monthly reports.

However, the primary error among the cities was that they produced abbreviated reports that omitted required information such as receipts, disbursements, and fund balances. Some of the deficient reports lacked substance, with abbreviated information presented without context or details.

The Civil Grand Jury believes there is no fiscal impact involved in complying with Section 41004.

Outside resources should not be required since existing staff already make some financial reports, collect this type of data, and should be able to produce treasurer’s reports. Therefore, each of the deficient cities can be compliant with minimal effort or burden. 19 Agenda Item # 1.

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Noncompliant Cities and Towns
Los Altos
The City of Los Altos does not have an elected city treasurer. Further, the Los Altos Municipal Code does not specifically state which official performs the duties of a city treasurer. Los Altos Municipal Code Section 2.01.060, however, provides that the city manager is the administrative head of the city and is specifically empowered “keep the council at all times fully advised as to the financial condition and needs of the city.” In the City of Los Altos, monthly treasurer’s reports are not prepared and submitted to the city clerk in accordance with Section 41004.

At the time of the Civil Grand Jury inquiry in June 2022, the City of Los Altos did not submit any treasurer’s reports. According to the City of Los Altos, Government Code section 37208 indemnified them from the Section 41004 mandate. However, the language of Government Code Section 37208 refers to payroll warrants or checks and makes no mention of the reporting required by Section 41004, which requires a report of “receipts, disbursements and general fund balances.” Moreover, the language of Government Code Section 37208 neither excuses a city from complying with Section 41004 nor makes any reference to Section 41004.

Further, the city erroneously noted that its Generally Accepted Accounting Principles (GAAP) policy on financial reporting excused noncompliance with Section 41004 reporting requirements.

In 2015, the city adopted a “Financial Policy” that reads in part, “The city’s accounting and financial reports are to be maintained in accordance with GAAP.” GAAP accounting does not address the Section 41004 mandated requirements.
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The Civil Grand Jury determined that the City of Los Altos does not produce treasurer’s reports and thus is noncompliant.

Los Altos Hills
The Town of Los Altos Hills does not have an elected city treasurer. The town’s Municipal Code is silent on who performs the duties of the treasurer; however, the Civil Grand Jury learned that the treasurer responsibilities fall to the director of administrative services.

The Civil Grand Jury received monthly treasurer’s reports in June 2022. Upon inspection, however, they contained only disbursements and lacked receipts as well as fund balances; thus the reports are incomplete and noncompliant.

Los Gatos
The Town of Los Gatos does not have an elected city treasurer. The town’s Municipal Code Section 2.30.035 delegates the responsibility of the treasurer and the ability to assign those duties to the town manager. The director of finance is responsible for the town’s financial matters. The Town of Los Gatos produces quarterly reports, not monthly reports as required by Section 41004.

While the disbursements, receipts, and fund balances are in the reports, they must be published at least once each month to comply with Section 41004. Because the production intervals are quarterly, the Town of Los Gatos is not in compliance.

Milpitas
The City of Milpitas does not have an elected city treasurer. Milpitas Municipal Code section VI1-3.02 vests the duties of a city treasurer with the city manager, who is empowered to appoint a city treasurer pursuant to Section VI-1-3.04. In the City of Milpitas, the finance director produces weekly disbursement reports, quarterly receipt and investment reports for the general and special districts’ funds, and annual reports for all other reporting.

At the time of inquiry in June 2022, the Civil Grand Jury noted well-prepared reports. However, the frequency of report submission does not meet Section 41004 criteria, which requires monthly reports. Reports showing all receipts, disbursements, and fund balances must be filed with the city clerk at least once each month. Due to submission infrequency, the City of Milpitas is not in compliance.

Campbell
In November of 2010, voters in the City of Campbell approved Measure O, which changed the office of the city treasurer (and city clerk) from an elected to an appointed office. The City of 21 Agenda Item # 1.

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Campbell’s Municipal Code is silent on who has officially assumed those duties.2 The Civil Grand Jury learned that the city’s finance director has the responsibilities of a treasurer and oversees the preparation of financial reports. The reports are prepared by the accounting clerk, reviewed by the finance manager and the finance director, and approved by the city manager for inclusion in the council packet.

At the time of inquiry in June 2022, 21 reports were submitted. The submitted documents had no payroll records and accounts payable balances with paid or disbursed funds. Additionally, the required information was not published at least once each month.

The City of Campbell’s submitted reports do not comply with Section 41004 because disbursements, receipts, and balances are not filed at least once each month.

Monte Sereno
The City of Monte Sereno does not have an elected city treasurer. The Monte Sereno Municipal Code section 2.04.010 designates the city manager as the director of finance and tasks the city manager with “performing all duties of City treasurer as set forth in Government Code sections 41000 et seq.” At the time of inquiry in June 2022, six treasurer’s reports were received by the Civil Grand Jury. While the reports did contain the required fund balances, the receipts and disbursements were not compliant with the Section 41004 requirement.

Compliant Cities
Cupertino
The City of Cupertino does not have an elected city treasurer. The City of Cupertino’s Municipal Code section 2.24.030 states:

The treasurer shall make monthly reports which conform to the requirements of Government Code Section 41004. Said reports shall be delivered to the City Council, city manager and made available for review by such other persons who may so request.

Until 2022, no staff member for the City of Cupertino had been preparing and delivering a monthly treasurer’s report to the Cupertino City council. However, during the Civil Grand Jury's 2 The City of Campbell’s Municipal Code does not appear to have been updated. The City of Campbell’s Municipal Code section 2.08.010 still states that the elected officers shall be those designated by general laws, which includes a city treasurer. Further, the code has other references to an elected city treasurer. (See Sections 2.16.040 [city treasurer compensation] and 2.16.010 [establishment of salaries].) 22 Agenda Item # 1.

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investigation, the belated monthly treasurer’s reports for January and February 2022 were published and placed on the Cupertino Audit Committee agenda.

The Civil Grand Jury recognizes the action taken by the City of Cupertino as soon as it was brought to their attention. The City of Cupertino is now compliant with Section 41004 as of March 2022, despite the stated history of not submitting the required reports.

Saratoga
The City of Saratoga does not have an elected city treasurer. The City of Saratoga Municipal Code section 2-20.035 states that the city manager shall serve as the city treasurer and be responsible for “other duties and responsibilities as required by law to be performed by the City Treasurer.” Thus, the city manager is responsible for the preparation and submission of monthly treasurer’s reports.

The Civil Grand Jury verified in June 2022 that regular monthly treasurer’s reports are filed with the City of Saratoga and are fully compliant with Section 41004. These reports can also be found by the public on the city’s website. An example is shown in Appendix A.

Morgan Hill
The City of Morgan Hill has an elected city treasurer. The treasurer, in conjunction with the finance director, prepares the treasurer’s reports.

The Civil Grand Jury verified in June 2022 that regular monthly treasurer’s reports are produced.

The reports contain all the required components of disbursements, receipts, and fund balances.

Thus, the City of Morgan Hill is compliant with Section 41004. A compliant Morgan Hill treasurer’s report is shown in Appendix A.
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CONCLUSION
Within the County, there is widespread noncompliance with California Government Code section 41004 by the general law cities. The Civil Grand Jury commends the cities of Saratoga and Morgan Hill for being in full compliance and notes the City of Cupertino’s quick action to become compliant. The Civil Grand Jury recommends that the noncompliant cities of Los Altos, Los Altos Hills, Los Gatos, Milpitas, Campbell, and Monte Sereno comply with Section 41004. This is to be done by producing treasurer’s reports at least once each month containing the required disbursements, receipts, and fund balance information. The benefit of implementing this recommendation overshadows any limited cost impact since existing staff could compile the report. In short, there is great benefit in producing these reports, as they improve financial transparency to the residents of the cities.
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FINDINGS AND RECOMMENDATIONS
It is recommended that noncompliant cities start producing treasurer’s reports as required by law.

Some cities produce abbreviated information that does not include requisite financial information as defined in state Government Code section 41004. Some cities produce requisite reports, but not on a monthly basis.

Finding 1
The City of Los Altos is not submitting monthly treasurer’s reports in compliance with California Government Code section 41004.

Recommendation 1
The City of Los Altos should comply with Government Code section 41004 by submitting monthly treasurer’s reports that include monthly disbursements, receipts, and fund balances and by filing those reports with the city. This recommendation should be implemented by March 15, 2023.

Finding 2
The City of Los Altos does not produce treasurer’s reports in compliance with California Government Code section 41004. The reason provided for non-compliance was that the City of Los Altos’ financial policy does not require the preparation and submission of treasurer’s reports.

It is an erroneous belief that internal policies excuse compliance with Government Code section 41004.

Recommendation 2
The City of Los Altos should amend its financial policy to require that monthly treasurer’s reports be prepared and submitted in accordance with California Government Code section 41004 by March 15, 2023.

Finding 3
The Town of Los Altos Hills produces monthly treasurer’s reports but the content of those reports lacks monthly disbursements, receipts, and fund balancesrequired by California Government Code section 41004.

Recommendation 3
The Town of Los Altos Hills should update their existing monthly reports to include monthly disbursements, receipts, and fund balances by March 15, 2023.

Finding 4
The Town of Los Gatos produced reports that contain the required content but does not produce the treasurer’s reports on a monthly basis as required by California Government Code section 41004.
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Recommendation 4
The Town of Los Gatos should produce its reports on a monthly basis to comply with California Government Code section 41004 by March 15, 2023.

Finding 5
The City of Milpitas does not produce monthly treasurer’s reports as required by California Government Code section 41004.

Recommendation 5
The Civil Grand Jury recommends that the City of Milpitas comply with California Government Code section 41004 by producing monthly treasurer’s reports that include monthly disbursements, receipts, and fund balances by March 15, 2023.

Finding 6
The City of Campbell does not produce monthly treasurer’s reports as required by California Government Code section 41004.

Recommendation 6
The City of Campbell should comply with California Government Code section 41004 by producing monthly treasurer’s reports that include monthly disbursements, receipts, and fund balances by March 15, 2023.

Finding 7
The City of Monte Sereno does not produce monthly treasurer’s reports as required by California Government Code section 41004.

Recommendation 7
The City of Monte Sereno should comply with California Government Code section 41004 by producing monthly treasurer’s reports that include monthly disbursements, receipts, and fund balances by March 15, 2023.

Finding 8
When the Civil Grand Jury began this investigation, the City of Cupertino was not in compliance with California Government Code section 41004. However, starting in March 2022, the City of Cupertino began producing treasurer’s reports compliant with Section 41004.

Recommendation 8
The City of Cupertino should maintain compliance with California Government Code section 41004. Continued compliance is recommended.
26 Agenda Item # 1.

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Finding 9
The Civil Grand Jury commends the City of Saratoga for producing monthly treasurer’s reports that include disbursements, receipts, and fund balances. The City of Saratoga is in full compliance with California Government Code section 41004.

Recommendation 9
No recommendation.

Finding 10
The Civil Grand Jury commends the elected city treasurer for producing monthly treasurer’s reports that include monthly disbursements, receipts, and fund balances. The City of Morgan Hill is in full compliance with California Government Code section 41004.

Recommendation 10
No recommendation.
27 Agenda Item # 1.

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REQUIRED RESPONSES
Pursuant to California Penal Code section 933(b) et seq. and California Penal Code section 933.05, the Civil Grand Jury requests responses from the following governing bodies:

Responding Agency Findings Recommendations
City of Los Altos 1, 2 1, 2
Responding Agency Findings Recommendations
Town of Los Altos Hills 3 3
Responding Agency Findings Recommendations
Town of Los Gatos 4 4
Responding Agency Findings Recommendations
City of Milpitas 5 5
Responding Agency Findings Recommendations
City of Campbell 6 6
Responding Agency Findings Recommendations
City of Monte Sereno 7 7
Responding Agency Findings Recommendations
City of Cupertino 8 8
Responding Agency Findings Recommendations
City of Saratoga 9
Responding Agency Findings Recommendations
City Treasurer of Morgan Hill 10
28 Agenda Item # 1.

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APPENDIX A: EXAMPLES OF COMPLIANT TREASURER’S

REPORTS
On the following pages are two examples of monthly treasurer’s reports that contain the required disbursements, receipts, and starting and ending fund balances and are therefore compliant with California Government Code section 41004. They are included to show that there are various names and formats that the reports may take. Following the examples are links to the full reports for ease of access.
29 Agenda Item # 1.

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Example 1. Page 3 of 7 from Saratoga August 2022 Treasurer’s Report https://legistarwebproduction.s3.amazonaws.com/uploads/attachment/pdf/1578630/Treasurer_Report_for_August_ 2022.pdf
30 Agenda Item # 1.

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Example 2. Page 12 of 21 from Morgan Hill March 2022 Financial and Investment Report https://www.morgan-hill.ca.gov/DocumentCenter/View/40944/March-2022-Financial-andInvestment-Report-PDF 31 Agenda Item # 1.

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REFERENCES
Bibliography
Campbell City Council meetings: December 7, 2021-June 7, 2022. Regular agenda item from the Finance Department, titled Approving Bills and Claims. https://campbellca.gov/AgendaCenter/ (Accessed November 28, 2022).

Campbell City Council meeting: February 1, 2022. Regular agenda item from the Finance Department, titled Investment Report – Quarter Ending December 2021. https://campbellca.gov/AgendaCenter/ (Accessed November 28, 2022).

Campbell City Council meeting: May 3, 2022. Regular agenda item from the Finance Department, titled Investment Report – Quarter Ending March 2022. https://campbellca.gov/AgendaCenter/ (Accessed November 28, 2022).

Campbell City Council meetings: December 7, 2021 – June 7, 2022. Regular agenda item from the Finance Department, titled Monthly Investment Transactions Report. https://campbellca.gov/AgendaCenter/ (Accessed November 28, 2022).

Campbell City Council meeting: April 25, 2022, Study Session Meeting of the Campbell City Council. https://campbellca.gov/AgendaCenter/ (Accessed November 28, 2022).

City of Cupertino, A- Payments to Chamber Jan 2015- Mar 2022. Report, 2022. https://cupertino.legistar.com/ (Accessed November 28, 2022).

City of Cupertino Administrative Services Department Finance Division, Fiscal Year 2019-2020 Comprehensive Annual Financial Report. https://cupertino.legistar.com/ (Accessed November 28, 2022).

City of Cupertino, Audit Committee meeting, May 23, 2022. https://cupertino.legistar.com/MeetingDetail.aspx?ID=923553&GUID=0C41F4A6-93D2-4B90- AAEB-7E5FF0F1EF8C&Search= (Accessed November 28, 2022).

City of Cupertino, B- Festivals – City Fees Waived & City Expenses. Report, 2022. https://cupertino.legistar.com/ (Accessed November 28, 2022).

Cupertino City Council meeting, April 21, 2022: March 2022 Report of City-wide Fund Balances/Net Position. http://cupertino.legistar.com/ (Accessed November 28, 2022).

Cupertino City Council meeting April 21, 2022: March 2022 Report of City-wide Receipts, Disbursements, and Cash Balances Cash Investments. http://cupertino.legistar.com/ (Accessed November 28, 2022).
32 Agenda Item # 1.

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Cupertino City Council meeting, April 25, 2022. Administrative Services Department, Audit Committee Staff Report for March, 2022. https://cupertino.legistar.com/ (Accessed November 28, 2022).

Cupertino City Council meeting, May 3, 2022. City Manager’s Office, City Council Staff Report. https://cupertino.legistar.com/ (Accessed November 28, 2022).

Cupertino City Council meeting, May 19, 2022. Amended Agenda of the Cupertino City Council. https://cupertino.legistar.com/ (Accessed November 28, 2022).

Cupertino Office of the City Clerk, Notice of Adjournment of the May 17, 2022. Notice, May 17, 2022. https://cupertino.legistar.com/ (Accessed November 28, 2022).

Cupertino, Payment Register. Report, December 21, 2021. http://cupertino.legistar.com/ (Accessed November 28, 2022).

Cupertino, Resolution NO. 22-015. Resolution, 2022. http://cupertino.legistar.com/ (Accessed November 28, 2022).

City of Lancaster, Excerpt from A Quick Summary for the Press and Researchers, https://www.cityoflancasterca.org/home/showpublisheddocument/10103/635775792210230000 (Accessed November 28, 2022).

Los Altos City Council meetings, January, 2022 – May, 2022. Monthly Disbursement Listing. https://www.losaltosca.gov/calendar/month?field_microsite_tid=2131&field_microsite_tid_1=Al l (Accessed November 28, 2022).

Los Altos City Council meeting, May 24, 2022. Quarterly Investment Portfolio Report – Quarter Ended March 31, 2022. https://www.losaltosca.gov/citycouncil/page/city-council-meeting-155 (Accessed November 28, 2022).

Los Altos City Council meeting, March 8, 2022. Quarterly Investment Portfolio Report – Quarter Ended December 31, 2021. https://mccmeetingspublic.blob.core.usgovcloudapi.net/losaltoscameet-419c5823741c494d9706451908d3061f/ITEM-Attachment-001- 0979a9a16c5c4dc898b8e8d7d4d4a6e1.pdf (Accessed November 28, 2022).

Los Gatos Town Council meeting, February 15, 2022. Second Quarter Investment Report (October through December 2021) for Fiscal Year 2021/22.
https://mccmeetings.blob.core.usgovcloudapi.net/losgatos-pubu/MEET-Packet94e86df454424b8b95ccc3f6eff96e41.pdf (Accessed November 28, 2022).

Los Gatos Town Council meeting, May 17, 2022. Third Quarter Investment Report (January through March 2022) for Fiscal Year 2021/22
https://mccmeetings.blob.core.usgovcloudapi.net/losgatos-pubu/MEET-Packet997ea555609c4af9b94eeb28b34fc7e3.pdf (Accessed November 28, 2022).

Monte Sereno City Council meetings: December 28, 2021 – June 3, 2022. Regular agenda item from the Finance Department submitting the monthly Treasurer’s Report. https://montesereno.civicweb.net (Accessed November 28, 2022). 33 Agenda Item # 1.

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City of Morgan Hill Finance Division, Monthly Financial and Investment Reports. March 31, 2022. https://www.morgan-hill.ca.gov/DocumentCenter/View/40944/March-2022-Financial-andInvestment-Report-PDF (Accessed November 28, 2022).

City of Saratoga Administrative Services, Treasurer’s Report for the Month Ended August 31, 2022. Final Report, October 5, 2022. https://legistarwebproduction.s3.amazonaws.com/uploads/attachment/pdf/1578630/Treasurer_Report_for_August_ 2022.pdf (Accessed November 28, 2022).

Solano County 2011-2012 Grand Jury, City Treasurer Functional Review. Final Report, January 12, 2012. https://solano.courts.ca.gov/wp-content/uploads/2020/01/111227-City-TreasurerFinal.pdf (Accessed November 28, 2022).

California Government Code Sections 34000 – 45345.

Los Gatos Municipal Code 2.30.035.

Milpitas Municipal Code VI-1-3.04.

Interviews
Interviews were conducted with 16 individuals between April 25, 2022, and June 16, 2022. 34 Agenda Item # 1.

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This report was ADOPTED by the 2022 Santa Clara County Civil Grand Jury on this 14th day of December, 2022.
______________________________
Karen Enzensperger
Foreperson
35 Agenda Item # 1.

PUBLIC CORRESPONDENCE

The following is public correspondence received by the City Clerk’s Office after the posting of the original agenda. Individual contact information has been redacted for privacy. This may not be a comprehensive collection of the public correspondence, but staff makes its best effort to include all correspondence received to date.

To send correspondence to the City Council, on matters listed on the agenda please email [email protected]
36 Agenda Item # 1.

From: Bill Hough
To: City Council; Public Comment
Subject: Public comment on January 24 agenda item 1
Date: Friday, January 20, 2023 11:59:50 AM
I object to this item being on the consent calendar.

This writer notes that the city claims that this is essentially a formatting dispute. The city’s response says Respondent notes that Government Code Section 41004 does not specify the manner in which the city treasurer is to provide the treasurer’s report.

Nonetheless, it would be good form for the City Manager to provide a plain English explanation of this dispute to the Council and the residents. Additionally, this explanation should be prominently posted on the City’s website and be submitted as an op-ed to the Town Crier and the Palo Alto Daily Post in the interests of transparency.

Bill Hough
Los Altos resident and taxpayer
37 Agenda Item # 1.

CITY COUNCIL MEETING

MINUTES
7:00 PM - Tuesday, January 10, 2023
via Videoconference and In Person

CALL MEETING TO ORDER
At 7:05 p.m. Mayor Meadows called the meeting to order.

ESTABLISH QUORUM
PRESENT: Councilmembers Fligor, Lee Eng (via Zoom), Dailey, Vice Mayor Weinberg, Mayor Meadows
ABSENT: None

PLEDGE ALLEGIANCE TO THE FLAG
Councilmember Dailey lead the pledge of allegiance.

REPORT ON CLOSED SESSION
No closed session, nothing to report.

CHANGES TO THE ORDER OF THE AGENDA
There were no changes.

PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA
A. Public Comment on Items not on the Agenda
The following members of the public spoke: Rhoda Fry.

SPECIAL ITEM
B. Mayor's Comments
Mayor Meadows provided comments to the community.

CONSENT CALENDAR

1. Minutes: Approve Minutes of the City Council Regular Meeting of December 13, 2022. (A.

Rodriguez)
Following a motion by Vice Mayor Weinberg, seconded by Councilmember Fligor, Item 1 was approved with the following roll call vote:
38 Agenda Item # 2.
01/10/23 CITY COUNCIL MEETING MINUTES Page 2 of 5
AYES: Councilmembers Fligor, Lee Eng, Dailey, Vice Mayor Weinberg, Mayor Meadows NOES: None
ABSENT: None
ABSTAIN: None

PUBLIC HEARINGS

2. Sixth Cycle Housing Element 2023-2031: A Resolution of the City Council of the City of Los Altos, California, adopting the Mitigated Negative Declaration (MND), based on its independent analysis that MND was completed in compliance with the California Environmental Quality Act (CEQA); find that there is no substantial evidence that the project will have a significant effect on the environment; and that the MND reflects the City’s independent judgment and analysis; approving the 2023-2031 Housing Element of the City’s General Plan; and Authorizing the Development Services Director to submit the Housing Element to the California Department of Housing and Community Development (HCD) for its consideration and certification.

Development Services Director Zornes introduced David Bergman with LWC, who presented the item to Council.

Vice Mayor Weinberg, Mayor Meadows, Councilmember Fligor, and Councilmember Lee Eng asked clarifying questions and Director Zornes responded.

Mayor Meadows opened the public hearing and the following members of the public spoke: Freddie Wheeler, Erik Steinle, Jon Baer, Jeanine Valadez, Rhoda Fry, Rani Fischer, Rigo Gallardo, Terry Couture, Teresa Morris, Tom F, Roberta Philips, Payal Bhaduri, and Joe Beninato, Debbie Skelton, Anne Paulson.

At 8:51 pm, Mayor Meadows called for a recess and reconvened the meeting back to order at 9:03 pm.

Council engaged in discussion and asked Director Zornes additional questions.

Mayor Meadows closed public comment and continued the Public Hearing to the January 24, 2023, Regular Meeting.

At 10:50 pm, Mayor Meadows called for a recess and reconvened the meeting back to order at 10:55 pm.

DISCUSSION ITEMS

3. Second Amendment to the Noll & Tam Architects and Planners’ EOC Conceptual Design Agreement for the Design, Construction Documents, and Construction Administration for the New Emergency Operations Center (EOC): Adopt a resolution to authorize the City Manager to execute Amendment No. 2 to the EOC Conceptual Design Agreement between the City of Los Altos and Noll & Tam Architects and Planners through FY 24-25 in an amount not to exceed $250,690 to provide Design, Construction Documents, and Construction Administration for a new Emergency Operations Center to be constructed in the Community Center (M. Loatfi)
City Manager Engeland introduced the item to Council.
39 Agenda Item # 2.
01/10/23 CITY COUNCIL MEETING MINUTES Page 3 of 5
Councilmembers Fligor, Lee Eng, and Dailey asked clarifying questions and City Manager Engeland responded.

The following members of the public spoke: Art Whipple, Harry Guy, and Roberta Phillips.

A motion by Vice Mayor Weinberg, seconded by Mayor Meadows, to approve the Second Amendment to the Noll & Tam Architects and Planners’ EOC Conceptual Design Agreement for the Design, Construction Documents, and Construction Administration for the New Emergency Operations Center passed with the following roll call vote:

AYES: Councilmembers Fligor, Lee Eng, Dailey, Vice Mayor Weinberg, Mayor Meadows NOES: None
ABSENT: None
ABSTAIN: None

4. Emergency Declaration Resolution: Adopt a Resolution extending the declaration of a local emergency due to the COVID-19 pandemic and provide direction on the conduct of Commission meetings (J. Maginot)
Assistant City Manager Maginot presented the item to Council.

There was no public comment.

Council engaged in discussion and asked clarifying questions and Assistant City Manager Maginot responded.

A motion by Vice Mayor Fligor, seconded by Mayor Weinberg, to adopt a Resolution extending the declaration of a local emergency due to the COVID-19 pandemic, passed with the following roll call vote:

AYES: Councilmembers Fligor, Lee Eng, Dailey, Vice Mayor Weinberg, Mayor Meadows NOES: None
ABSENT: None
ABSTAIN: None
Council agreed and gave direction to allow the public participation to continue for Council meetings through the hybrid format.

Council agreed to have Commissions come back to in person meetings starting in March, 2023.

5. Affirm 2023 Council Commission and Committee Assignments: Pursuant to City Council Norms and Procedures, Affirm Mayor appointments to Local, Regional Boards and City Committees and Commissions
Mayor Meadows introduced the item to Council.

The following members of the public spoke: Jeanine Valadez, Sashi B, Liang Chao, Roberta Philips, and Nancy.

The Council engaged in discussion.
40 Agenda Item # 2.
01/10/23 CITY COUNCIL MEETING MINUTES Page 4 of 5
Vice Mayor Weinberg called forth a violation of the Council Norms by Councilmember Lee Eng. As defined in the Council’s Accountability Policy, the Council issued a warning to Councilmember Lee Eng, which serves as her first warning under the Policy. The warning is in response to the Councilmember’s violation of Council Norms and Procedures 6.3 Regional Boards and 11.10 Councilmember Respect.

Mayor Meadows amended her Council assignments to the Cities Association Legislative Action Committee appointing Councilmember Fligor as the primary and herself as the secondary and made no appointment to the Santa Clara County Library JPA.

A motion by Councilmember Dailey, seconded by Councilmember Fligor, to adopt the Mayor appointments as amended passed with the following roll call vote:

AYES: Councilmembers Fligor, Dailey, Vice Mayor Weinberg, Mayor Meadows NOES: None
ABSENT: None
ABSTAIN: Councilmember Lee Eng
Mayor Meadows requested the Interim City Clerk to communicate to VTA that Vice Mayor Weinberg received the Council’s nomination to be the Valley Transportation Authority Board Alternate for the North County Cities Group with all the rights and obligations pertaining thereto.

INFORMATIONAL ITEMS ONLY

6. Tentative Council Calendar

COUNCIL/STAFF REPORTS AND DIRECTIONS ON FUTURE AGENDA ITEMS Vice Mayor Weinberg thanked Staff for their work regarding the recent weather emergencies.

Vice Mayor Weinberg requested that the Council issue a warning to Councilmember Lee Eng pursuant to the censure and formal admonition provisions of this Council’s Accountability Policy. Mayor Meadows and Councilmember Dailey supported.

Councilmember Fligor reported the start of her 2023 office hours being the 3rd Friday of the month alternating between Grant Park and Community Center with a start time of 9:30 am.

City Manager Engeland reported the Emergency Operation’s Center is active at level 3 and monitoring current storms.

ADJOURNMENT
Mayor Meadows adjourned the meeting at 12:44 am.
_____________________________________
Sally Meadows, MAYOR
ATTEST:
41 Agenda Item # 2.
01/10/23 CITY COUNCIL MEETING MINUTES Page 5 of 5
_____________________________________
Angel Rodriguez, INTERIM CITY CLERK
42 Agenda Item # 2.

AGENDA REPORT SUMMARY

Prepared By:

City Manager
GE
City Attorney
JH
Meeting Date: January 24, 2023
Subject: City Council public hearing to review and consider adoption of the Los Altos 6 th Cycle Housing Element 2023-2031 and Mitigated Negative Declaration (MND).

Prepared by: Nick Zornes, Development Services Director Approved by: Gabe Engeland, City Manager
Attachment(s): 1. 6
th Cycle Housing Element 2023-2031, City of Los Altos

2. Initial Study/Mitigated Negative Declaration, City of Los Altos

3. November 10, 2022, HCD Findings Letter, City of Los Altos

4. IS-MND - Public Comments Received

5. IS-MND Mitigation Monitoring and Reporting Program-City of Los Altos

6. Planning Commission Resolution – PC 2023-01 (Signed)

7. Planning Commission - Public Comments Received

8. City Council Resolution – CC 2023-XX
Initiated by: City Council.

Fiscal Impact
Associated fiscal impacts are anticipated for State mandated programs included within the 6th Cycle Housing Element 2023-2031. Some of the programs included within the Housing Element will require work to be completed by a third-party consultant, other programs will require the allocation of funds for additional full-time City staff such as a Housing Manager within the Development Services Department. The majority of programs will be funded by the General Fund as indicated within the Draft Housing Element. In future years the City may be eligible for grant opportunities which are generally reimbursement structured grants, which could help to offset the overall cost of housing programs included, however in no circumstance may a program be dependent upon the award of grant funding.

Environmental Review
The “project” requires environmental review consistent with the California Environmental Quality Act (CEQA). The Housing Element is a policy-level document that does not create physical residential growth in and of itself, but only identifies adequate and available sites for residential 43 Agenda Item # 3.

Subject: City Council public hearing to review and consider adoption of the Los Altos 6th Cycle Housing Element 2023-2031 and Mitigated Negative Declaration (MND).

January 10, 2023 Page 2
development, and programs to be undertaken that facilitate the creation of housing during the 2023-2031 planning period.

Based on its independent analysis a Mitigated Negative Declaration (MND) was completed in compliance with the California Environmental Quality Act (CEQA); and finds that there is no substantial evidence that the project will have a significant effect of the environment; and that the MND reflects the City’s independent judgement and analysis; and approves the 2023-2031 Housing Element of the City’s General Plan; and Authorizing the Development Services Director to submit the Housing Element to the California Department of Housing and Community Development (HCD) for its consideration and certification.

A Notice of Intent (NOI) to adopt the Initial Study/Mitigated Negative Declaration was released on November 30, 2022, for a 30-day public review that concluded on December 30, 2022.

Staff Recommendation

1. Adopt City Council Resolution No. CC-2023-XX adopting the 6 th Cycle Housing Element
2023-2031 and Mitigated Negative Declaration (MND) in compliance with State law.

2. Direct the Development Services Director to submit the Adopted 6 th Cycle Housing
Element to the State of California, Housing and Community Development Department (HCD) for final concurrence.

Summary and Key Considerations
This continued item was previously considered at the January 10th, 2023, City Council Public Hearing. During the public hearing the City Council received a presentation, asked questions of staff, received public testimony, conducted discussion, and asked additional questions of staff. The City Council directed the Development Services Director to revise the draft housing element based upon public testimony and City Council discussion and return to the City Council on January 24, 2023. Staff has incorporated the necessary revisions discussed at the January 10, 2023, meeting.

A supplemental memo will be added to this agenda item which outlines the revisions made to the draft housing element being considered tonight.

This is a public hearing to obtain the Planning Commission recommendation to the City Council regarding the 6th Cycle Housing Element 2023-2031. The Housing Element is required by State law to identify and analyze existing and projected housing needs to preserve, improve, and develop housing for all economic segments of the community, and demonstrate how the City of Los Altos 44 Agenda Item # 3.

Subject: City Council public hearing to review and consider adoption of the Los Altos 6th Cycle Housing Element 2023-2031 and Mitigated Negative Declaration (MND).

January 10, 2023 Page 3
will accommodate its fair share of regional housing needs. The City of Los Altos is updating the Housing Element consistent with the requirement of State law and guidance provided by the State of California, Housing and Community Development Department (HCD). The Planning Commission will be making a recommendation on the item to the City Council. The City Council will consider the item at a separately noticed public hearing on January 10, 2023, and January 24, 2023.

Background
Every eight years the State requires that each jurisdiction update its Housing Element to address future housing needs. The Department of Housing and Community Development (HCD) is the agency responsible for tracking and determining compliance with the State Housing Law. The City must adopt the 6th Cycle Housing Element Update (2023-2031) by January 31, 2023.

There are consequences for the city if the Housing Element is adopted after January 31, 2023, or if the Housing Element is not found to be in substantial conformance with State law within 120- days after the statutory due date of January 31, 2023. If a Housing Element is not in substantial conformance with State law, the City will be vulnerable to litigation by the State Attorney General and other interested parties, be potentially ineligible for some state and regional funding, and other penalties as allowed by State law or as determined by a court.

Objectives of the Housing Element:
• An analysis of housing needs in Los Altos
• Policies that address the needs of the community
• Programs that will implement those policies
• Programs that are required to comply with State law
The Housing Element is part of the City’s General Plan, which sets forth guiding policies for future development. The requirement for each city to adopt a General Plan is contained in State law which also lays out specific requirements for each element. The Housing Element provides an overarching statement of City policies and programs to maintain and improve existing housing and accommodate the City’s fair share of population growth needs. The requirements in State law for Housing Elements include the following:
• Ensure adequate sites for new housing for persons of all income levels • Encourage and facilitate the development of affordable housing • Conserve and improve the existing affordable housing stock 45 Agenda Item # 3.

Subject: City Council public hearing to review and consider adoption of the Los Altos 6th Cycle Housing Element 2023-2031 and Mitigated Negative Declaration (MND).

January 10, 2023 Page 4
• Analyze and remove government constraints on new housing development • Promote equal housing opportunities
• Preserve assisted housing
What Are Housing Element Programs?
The City of Los Altos must identify specific programs in its housing element that will allow it to implement the stated policies and achieve the stated goals and objectives. Programs must include specific action steps the City will take to implement its policies and achieve its goals and objectives. Programs must also include a specific timeframe for implementation, identify the agencies or officials responsible for implementation, describe the city’s specific role in implementation, and (whenever possible) identify specific, measurable outcomes.

The programs included within the Los Altos Sixth Cycle Housing Element 2023-2031 create the overarching framework and roadmap that will guide the city in meeting its housing needs within the community. Each program included will require additional work, public input, and development in the future. This means that programs listed within the Housing Element will be heard at future public hearings and workshops to develop the specific amendments to the City’s Zoning Code, and other Land Use documents. This process also allows for specific refinement of each program when developing the implementing ordinances for the City.

Regional Housing Needs Allocation (RHNA):

The City of Los Altos is within the Association of Bay Area Governments (ABAG) comprised of 109 jurisdictions, with a Housing Element Planning Period of 2023-2031. Before the Housing Element can be updated, ABAG produces the Regional Housing Needs Allocation (RHNA) in partnership with the California Department of Housing and Community Development (HCD). HCD starts the housing element revision process by determining how many additional housing units each region in California will need over the next housing element revision period. HCD considers the projected population increase to determine the anticipated household growth rate, household sizes, household formation, vacancy rates and jobs-housing balance to determine an allocation of housing need for each region. HCD determined that the Bay Area region must plan for 441,176 new housing units from 2023 to 2031, approximately 2.35 times more units than were included in the previous housing element cycle.
46 Agenda Item # 3.

Subject: City Council public hearing to review and consider adoption of the Los Altos 6th Cycle Housing Element 2023-2031 and Mitigated Negative Declaration (MND).

January 10, 2023 Page 5
Next, ABAG assigns each jurisdiction within the region with its “fair share” of the RHNA for the housing element planning period, based on an allocation methodology developed as part of the process and approved by HCD. The assigned need is broken down by four income categories: very low, low, moderate, and above moderate. Draft allocations are issued, followed by an appeals period. After the appeal hearings, ABAG will issue final allocations by the end of 2021. ABAG’s final distribution of housing needs numbers must account for the region’s total RHNA.

City of Los Altos final allocation is 1,958 units which are distributed between the following four (4) income categories:
• Very Low Income (Less than 50% of Area Median Income): 501 units • Low Income (50-80% of Area Median Income): 288 units
• Moderate Income (80-120% of Area Median Income): 326 units • Above Moderate Income (More than 120% of Area Median Income): 843 units The City’s RHNA represents a planning target and is not a building quota. The Housing Element Update must show how Los Altos will accommodate the RHNA on sites that are realistic for housing development within the eight-year housing element period (2023-2031) consistent with State law and guidance.

Sites Inventory
The sites inventory (also called the available land inventory or sites map) is a crucial part of the Housing Element. In the sites inventory, a jurisdiction identifies where it has capacity to meet the housing production quotas assigned by the State through ABAG for all income categories (i.e., RHNA). It is typically in the form of a map and table listing features and characteristics of the properties. State law and guidance include certain requirements for sites to be sufficient for inclusion in the sites inventory (e.g., size of parcels identified for lower income, allowed density for lower income sites, etc.). Specifically, State law requires that the site inventory include:
• Adequacy of infrastructure to support the site
• Adequacy of the site size to accommodate housing for lower-income households as such projects typically require 50-150 units (a minimum site size of 0.5-acre is required for lower-income sites)
47 Agenda Item # 3.

Subject: City Council public hearing to review and consider adoption of the Los Altos 6th Cycle Housing Element 2023-2031 and Mitigated Negative Declaration (MND).

January 10, 2023 Page 6
• The RHNA income category the site is expected to serve (if the site is later developed for a different income category the City must then identify a new site or sites for a similar amount of the targeted development type)
• A discussion of whether the site was included in previous inventories and, if so, why it has not yet been developed
• A description of how the sites affirmatively further fair housing (defined as taking meaningful actions that, collectively, address significant disparities in housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws.)
• For sites that are not vacant, an explanation of why it is reasonable to expect that the site will be redeveloped with housing before 2031 (e.g., underutilized property, condition/age of structure, not precluded by existing leases, development trends, market conditions, etc.)
Site Inventory Buffer. SB 166 enacted by the California Legislature and signed by the Governor in 2017 created a requirement for “no net loss” of housing capacity during the entire planning period covered by the Housing Element Update. This means that Los Altos must maintain adequate sites to accommodate its remaining unmet RHNA for each income category at all times throughout the entire eight-year planning period covered by the Housing Element Update (through 2031). This requirement is the source of the “buffer” as State law anticipates that not all the sites that are identified will develop at the planned income level. To meet the requirement to maintain adequate sites at all income levels, HCD is recommending that communities include excess housing unit capacity in their plans. While the excess capacity over RHNA is not required, HCD recommends that communities plan for a buffer of between 15 and 30% of their RHNA capacity to assist with compliance with the “no net loss” requirement. Communities can address this need for a buffer based on their specific circumstances. In Los Altos’ case, the buffer will be established as part of the site inventory identification process.

On-time Housing Element Importance
The City must adopt the Sixth Cycle Housing Element 2023-2031 by January 31, 2023. The City must be found to be in substantial compliance (meaning a letter from HCD affirming compliance with Housing Element Law) within 120-days of the statutory deadline of January 31, 2023. If the City is not found in substantial compliance within 120-days of the statutory deadline, all rezoning required within the housing element shall be completed within one year of the housing element 48 Agenda Item # 3.

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due date (as opposed to three years) to maintain housing element compliance. Additionally, an approved Housing Element makes Los Altos eligible for a variety of State grants, including funds for affordable housing, parks, and infrastructure. If the City does not meet its deadline to adopt its updated Housing Element, it could face fines and lawsuits from the State. A court may limit local land use decision-making authority until the City brings its Housing Element into compliance.

Housing Element Development
In June 2021, the City selected Lisa Wise Consulting (LWC) as the consulting firm to prepare the City’s 2023-2031 Housing Element after conducting a competitive RFP and bidding process. LWC began working with staff to collect housing data in late summer and fall. In October 2021, the City Council Housing Element Committee was formed, and the subcommittee provided direction to staff on a community engagement approach. On March 22nd, 2022, the role of the Committee was expanded to provide general feedback in the Housing Element update process. Staff has worked closely with the team at LWC and their outreach subconsultant, Plan to Place, to ensure that Los Altos residents, the local business community and its workforce, community and faith-based nonprofits, and other communities of interest, are engaged and informed about the Housing Element update.

Outreach (Prior to HCD First Submittal)
Phase One, Staff began the outreach process with a multi-faceted approach last November through 1) the establishment of a Housing Element page on the City’s website, which is maintained by LWC and city staff, and is linked to the City’s main webpage, through which the city has received input directly from residents and businesses; 2) six Housing Element pop-up tables at various events around the city; 3) ongoing small group virtual meetings on the Housing Element, ranging from 2 to 10 attendees, of which 30 have been held to date, where staff presents information and answers questions; 4) two double page ads in the Town Crier; 5) ongoing Housing Element newsletters and alerts for over 150 persons who have signed up on the interest list; 6) two Community Workshops, with the first attended by over fifty households, and the second on March 1st, attended by over 150 households; 7) an informational flier sent to every household in Los Altos; and multiple banners (8’ by 3’) posted on varies City Buildings and street corners advertising the Housing Element Update website and opportunity for continued public input.

Phase Two, provided information and allowed feedback on the potential housing element sites and potential rezoning sites in the City. Staff sent a postcard to all Los Altos residents, informing them of the community workshop on March 1st, requesting feedback on the potential sites and rezoning opportunities, and directing them to the Housing Element website for complete information. A 49 Agenda Item # 3.

Subject: City Council public hearing to review and consider adoption of the Los Altos 6th Cycle Housing Element 2023-2031 and Mitigated Negative Declaration (MND).

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map of potential sites and rezoning opportunities was posted on the Housing Element website prior to the March 1st, community workshop.

Since that time, staff has met with the business community, residents, and many local organizations, including the Chamber of Commerce, Los Altos Village Association, Los Altos Property Owners Downtown, the Los Altos Advocates for Affordable Housing, the League of Women Voters, Los Altos Residents, Friends of Los Altos, nonprofit housing developers, community-based and faith-based nonprofits, veterans’ groups, and businesses and their workforce. Staff has received and shared with the consultant many e-mails related to the sites analysis from all groups, developers, residents, and interested parties.

Critical Milestones
On April 26, 2022, at a Joint Session Planning Commission and City Council meeting, LWC presented five (5) policy options for the Council and Commission consideration and feedback.

Discussion was held related to allowing residential uses in PCF and OA zoning districts, and whether to increase density and height in CR, CRS, and the Loyola Corners Specific Plan. After the April 26, 2022, Joint Session Planning Commission and City Council meeting, LWC and staff have reconciled comments received and incorporated as necessary required modifications to the Draft Sixth Cycle Housing Element.

On June 22, 2022, the City of Los Altos made available the Public Review Draft of the Sixth Cycle Housing Element 2023-2031, opening the required minimum 30-day public participation requirement. The Public Review Draft was posted on the dedicated housing element webpage at:
www.losaltoshousing.org and shared in a Citywide Press Release in addition to an email/newsletter sent to all interested parties on the housing element update distribution list.

On July 7, 2022, the Public Review Draft was presented to the Planning Commission. The Planning Commission received an overview of the completed Public Review Draft, accepted Public testimony, discussed the item and recommended that the City Council submit the Public Review Draft of the Sixth Cycle Housing Element 2023-2031 to HCD following the required Public Participation period.

On July 12, 2022, City Council meeting, City Council accepted Public Testimony regarding the of the Public Review Draft of the Sixth Cycle Housing Element 2023-2031, discussed the draft, and direct staff to consider and incorporate appropriate public comments into the Draft Housing Element during the required 10 business days, and then transmit the document for HCD’s formal first review.
50 Agenda Item # 3.

Subject: City Council public hearing to review and consider adoption of the Los Altos 6th Cycle Housing Element 2023-2031 and Mitigated Negative Declaration (MND).

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The City formally submitted the first Draft of the Sixth Cycle Housing Element on August 12, 2022, to HCD. During HCD’s 90-day review, the City received initial verbal comments from HCD (2-weeks) prior to receiving HCD’s formal Findings Letter. On November 10, 2022, the City of Los Altos received its formal comment letter from HCD regarding the Draft Sixth Cycle Housing Element (Attachment #2). A comprehensive analysis and how the revised Housing Element addressed comments received is covered later in the report.

On November 29, 2022, City Council Study Session, City Council accepted Public Testimony regarding the status of the Sixth Cycle Housing Element 2023-2031, and report on initial findings letter from the Department of Housing and Community Development (HCD) post 90-day review, and proposed timeline and response to required amendments to the draft Housing Element to comply with State law. The timeline presented on November 29, 2022, reflected the critical milestones that the City must adhere to in order to adopt and be found to be in substantial compliance by HCD.

On November 30, 2022, the City of Los Altos released a Notice of Intent (NOI) to adopt the Initial Study/Mitigated Negative Declaration, for a 30-day public review that concluded on December 30, 2022. At the time of publishing of this report (December 29, 2022) only one public comment had been received regarding the Initial Study/Mitigated Negative Declaration for the Sixth Cycle Housing Element.

Outreach (Since receipt of HCD Findings Letter)
On Friday, November 18, 2022, Director Zornes met with five members of the Los Altos Affordable Housing Alliance virtually for a 1-hour meeting which was extended to 2-hours to discuss HCD’s Findings Letter, and potential solutions for the City to consider to be found in substantial compliance. Director Zornes took note of all comments provided by the Los Altos Affordable Housing Alliance and has incorporated all appropriate comments/solutions within the draft Housing Element that are consistent with the requirements of State law. A follow-up letter was received by Director Zornes which outlined the specific concerns and proposed revisions from the Los Altos Affordable Housing Alliance; these comments were addressed within the document or incorporated accordingly.

On November 30, 2022, Director Zornes met with Joanne Price who represents Dignity Moves and Life Moves, two non-profit organizations in Silicon Valley that work with those in the community facing homelessness. The two organizations have had significant success with the 51 Agenda Item # 3.

Subject: City Council public hearing to review and consider adoption of the Los Altos 6th Cycle Housing Element 2023-2031 and Mitigated Negative Declaration (MND).

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creation of housing for those facing homeless of projects for temporary and permanent supportive housing. The contact for Dignity Moves was provided by Councilmember Lee Eng the week prior.

Much can be learned from the staff at Dignity Moves and Life Moves as we work to address homelessness in the development and implementation of many of our programs in the 6th Cycle Housing Element.

On December 7, 2022, Director Zornes presented to the Los Altos Chamber of Commerce regarding the status of the City’s Sixth Cycle Housing Element. Director Zornes received overwhelming support from all in attendance at the Chamber of Commerce meeting where it was also expressed the hopefulness of the subsequent programs that will be developed and implemented within Los Altos.

On December 16, 2022, Director Zornes presented to the Los Altos Community Coalition regarding HCD’s Findings Letter, and what is next for the Sixth Cycle Housing Element. Director Zornes received overwhelming support from all in attendance at Los Altos Community Coalition meeting where it was also expressed the hopefulness of the subsequent programs that will be developed and implemented within Los Altos.

On December 16, 2022, City Manager Engeland and Director Zornes met with the Los Altos Resident (LAR) group regarding HCD’s Findings Letter, and what is next for the Sixth Cycle Housing Element. Director Zornes received a letter of appreciation for the work completed up until that point on the Housing Element and support for the Draft 6th Cycle Housing Element with the discussed revisions that have been included in the updated draft.

On December 16, 2022, Director Zornes met with the League of Women Voters to discuss an earlier received comment letter regarding the formal Findings Letter from HCD. Additionally, the League provided Director Zornes with a list of questions that helped to organize the conversation; the initial discussion was planned to last 1-hour, which extended to a 2-hour discussion to further understand the forthcoming revisions to the draft Housing Element. The meeting was productive and helped to provide insight on the needs and concerns of the League which has resulted in further improvements to the Los Altos Housing Element.

Revisions Post 90-day Review
The HCD Findings Letter dated November 10, 2022, provided comments that were organized under the following topics: Housing Needs, Resources, and Constraints, Housing Programs and Public Participation. A summary of HCD’s comments and discussion are provided below. 52 Agenda Item # 3.

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Housing Needs, Resources, and Constraints

1. Affirmatively furthering fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction. (Gov. Code, § 65583(c)(10)(A).)
• AFFH was first required with the adoption of AB 686 which was signed in 2018.

Importantly AB 686 also created new housing element requirements applying to all housing elements due to be revised on or after January 1, 2021. This is the first housing element for the City of Los Altos where the specific requirement for Affirmatively Furthering fair Housing must be included within our analysis. The goal of Affirmatively Furthering Fair Housing (AFFH) is to combat housing discrimination, eliminate racial bias, undo historic patterns of segregation, and lift barriers that restrict access in order to foster inclusive communities and achieve racial equity, fair housing choice, and opportunity for all Californians. o The Los Altos Housing Element Team has provided further clarification and explanation within Appendix F, Affirmatively Furthering Fair Housing (AFFH) based on the data available. It will be important for the City of Los Altos to further collect and analyze data in the coming years in order to ensure that the City is effectively Affirmatively Furthering Fair Housing within the jurisdiction.
o Revisions to the Draft Housing Element have been incorporated throughout Appendix to address the comments provided by HCD.

2. Include an analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (Gov. Code, § 65583(a)(2).)
• Specific Data requested by HCD in the Findings Letter has been incorporated into Appendix A, Housing Needs Assessment.
• Policies and programs that are included within the Draft Housing Element which are designed to provide more affordable housing options and help to reduce the level of overpayment experience in Los Altos are:
o Program 2.A – Continue to implement and enhance inclusionary housing requirements.
o Program 2.C – Assist in securing funding for affordable housing projects. o Program 2.D – Encourage and streamline Accessory Dwelling Units (ADUs).
o Program 5.E – Help secure funding for housing rehabilitation and assistance programs.
o Program 6.D – Promote Housing Choice (Section 8) rental assistance program.
53 Agenda Item # 3.

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3. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov.

Code, § 65583(a)(3).)
• In general, HCD’s Findings Letter articulates fundamentals for the site inventory analysis which is required of all housing elements. Progress towards meeting RHNA will require the City to provide additional analysis of “Pipeline” projects and the probability of those projects being constructed in the Planning Period (2023-2031). City staff if confident that the all-pipeline projects will be constructed within the Planning Period as the majority of those projects/units have submitted their construction documents to the city for Plan Check. o Of the 587 Total Net New Units:
▪ 401 units have been entitled/approved in 2022; 135 of which are designated to very-low-, low- and moderate-income households. ▪ 415 units are in Building Plan Check; 141 of which are designated to very-low-, low- and moderate-income households.
▪ 63 units are currently under construction; 9 of which are designated to very-low-, low- and moderate-income households.
o It is important to note that of the 587 “pipeline” projects or as detailed in Table B-3: Entitled and Proposed Developments in Appendix B, Sites Inventory & Methodology only 2 units are on a “vacant” site, all remaining units listed with Table B-3 are developed sites that are ripe for redevelopment. Additionally, Program 1.N – Facilitate and monitor pipeline housing projects, will be monitored closely by City staff to ensure that these projects are being reviewed accordingly.
• The draft housing element relies heavily on nonvacant sites; over 50% of sites identified. This is common in most jurisdictions that are close to buildout much like the City of Los Altos. The draft housing element must further demonstrate that the existing uses is not an impediment to additional residential development. o Site visits have been conducted to verify occupancy of several of the sites that are listed in Table B-3, where it has been confirmed that there are several vacancies present.
• Accessory Dwelling Unit ordinance shall comply with State law at all times. The City understands this requirement and has further added language to Program 2.D.

The program clearly demonstrates compliance with the requirement as requested within the HCD Findings Letter.
o Additional information was provided to City staff during a preliminary call with HCD. The City’s ADU Ordinance has been determined to be inconsistent with State law, and revisions will be necessary. HCD verbally 54 Agenda Item # 3.

Subject: City Council public hearing to review and consider adoption of the Los Altos 6th Cycle Housing Element 2023-2031 and Mitigated Negative Declaration (MND).

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and in writing has stated that the City will receive a letter regarding noncompliance issues under a separate cover which will require zoning code amendments. Director Zornes will promptly review the letter of noncompliance and with consultation of the City Attorney will draft amendments to the zoning code based on HCD’s noncompliance letter. • The draft housing element must further demonstrate that Emergency Shelters are allowed within the City, and clearly show what zones they are allowed by-right. o Program 3.H has been amended to reflect that no discretionary action is required.
o Program 3.M has been added to reflect that the City of Los Altos will ensure compliance with parking requirements for Emergency Shelters consistent with State law.
• The draft housing element must clearly demonstrate that Manufactured Housing is allowed within the City and does not require any additional review in order to be located within the City.
o Program 3.J – Explicitly allow manufactured homes consistent with State law, has been amended to further include language that all Manufactured Homes are permitted in the same zones where single-family homes are allowed.

4. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures... (Gov. Code, § 65583(a)(5).) • The Loyola Corner Specific Plan has a requirement for Minimum Unit Sizes, this requirement as well as other land use controls has not been enforceable since the adoption of the Housing Crisis Act.
o Program 1.E – has been amended to clarify the City’s commitment to allowing housing within the Loyola Corners Specific Plan. The City will update or rescind in entirety and revert to underlying zoning to facilitate housing production. The City will eliminate the 20-unit density cap, the dwelling unit size requirement, and the story count and height limitation. • Citywide Parking Requirements and Downtown Parking Plan. o Program 3.A – Prepare a Downtown parking plan and update citywide parking requirements. The City has committed to expanding the program to be a comprehensive analysis of parking requirements in the City. An easy to navigate Parking Matrix will be the result of this program in addition to a Parking Management Plan for the Downtown Los Altos Area. 55 Agenda Item # 3.

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• Fees and Exactions. The City will include a program that analyzes the Development Fee Schedule within Los Altos.
o Program 3.D – Evaluate and adjust impact fees, has been amended to commit the City of Los Altos to conduct a Comprehensive Fee Study. At the completion of the fee study the City Council will adopt an updated fee schedule which reflects the appropriate cost of permitting and project review for development within the City.
• Local Processing and Permit Procedures.
o Program 3.H – Amend design review process and requirements, the program has been revised to specify the barriers that have been identified in Appendix C, Housing Constraints, and committed the City to the following:
▪ Consolidation of the Design Review Commission and Planning Commission into one body upon adoption of the Housing Element. ▪ Formally rescind the requirement of 3rd Party Independent Architect Review for all project types (this requirement was never formally adopted and was implemented by staff per council discussion, this requirement is not enforceable.)
▪ Discretionary approvals for housing developments of five or fewer units will be approved by the Development Services Director. ▪ Limit design review hearings to a maximum of three, regardless of the hearing body.
▪ Develop standard conditions of approval that are based on codified requirements within the Los Altos Municipal Code. This is to provide applicants a level of certainty as well as ensure that regulations are being applied consistently on all projects and not negotiated during a Public Hearing.
▪ Create a discretionary review matrix that clearly identifies the reviewing body for approvals and appeals. Redesignate the City Council to only serve as the decision-making authority for appeal of design review and other land use decisions, consistent with the majority of all jurisdictions in the County of Santa Clara. ▪ Clarify that decisions on appeals of housing development must be based on objective standards consistent with State law. Furthermore, appeals shall be filed with the City of Los Altos within 10 calendar days.

Housing Programs
• Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are 56 Agenda Item # 3.

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ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing Element... (Gov. Code, § 65583(c).)
• The programs below have been amended to include the following specifics which are consistent with the comments received by HCD in the November 10, 20222 Findings Letter:
• Program 1.B: CT Zone will increase the allowed height by a minimum of 10 feet, and one story. The program will be completed 1-year sooner than originally proposed. • Program 1.C: OA Zone will allow residential uses 1-year sooner than originally proposed.
• Program 1.D: housing on church owned sites will be completed 1-year sooner than originally proposed.
• Program 1.E: the Loyola Corners Specific Plan will be updated or rescinded and revert to underlying zoning in order to remove all barriers to the creation of housing within the area. The program will be completed 1-year sooner than originally proposed. • Program 1.H: The City will offer a minimum of a 20 years of a zero cost land lease to a housing development providing a minimum of 20 percent of all dwelling units to low income households. The City will encourage the development of senior, housing for persons with disabilities and veteran housing on City-owned Parking Plazas 7 and 8.

The City will provide permit fee and development impact fee waivers depending on the level of affordability provided onsite. The program will be completed 1-year sooner than originally proposed and will process all approvals timely within one year. • Program 1.I: will provide a reduction in permit fees for the consolidation of lots and will remove any constraints to lot consolidation with adoption of municipal code amendments.
• Program 2.A: the City will update its in-lieu housing ordinance and establish an in-lieu housing fee to help facilitate the development of both market-rate and affordable housing.
• Program 2.C: the City has committed to further helping to obtain funding for the creation of additional affordable housing units whenever available. • Program 3.A: the City will complete a comprehensive parking evaluation that does not only look at parking in downtown, but citywide. The program will be completed 1-year sooner than originally proposed.
• Program 3.B: building heights in mixed-use zones will be increased by 10-feet and one story minimum, this is consistent with the recommendations in the Downtown Vision Plan. The program will be completed 2-years sooner than originally proposed. • Program 4.C: Low Barrier Navigation Centers, is a program that was not completed within the last Planning Period which requires the City to complete the necessary 57 Agenda Item # 3.

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zoning code amendments no later than December 2023; City staff will bring draft ordinances to the Planning Commission no later than May 2023 followed by City Council immediately thereafter.
• Program 4.D: Transitional and Supportive Housing, is a program that was not completed within the last Planning Period which requires the City to complete the necessary zoning code amendments no later than December 2023; City staff will bring draft ordinances to the Planning Commission no later than May 2023 followed by City Council immediately thereafter.
• Program 4.E: Employee/Farmworker Housing, is a program that was not completed within the last Planning Period which requires the City to complete the necessary zoning code amendments no later than December 2023; City staff will bring draft ordinances to the Planning Commission no later than May 2023 followed by City Council immediately thereafter.
• Program 4.F: Reasonable Accommodations, is a program that was not completed within the last Planning Period which requires the City to complete the necessary zoning code amendments no later than December 2023; City staff will bring draft ordinances to the Planning Commission no later than May 2023 followed by City Council immediately thereafter.
• Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Government Code section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobile homes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. (Gov. Code, § 65583(c)(1).) • Program 1.G: previous sites utilized in 5th cycle housing element must be up zoned for a minimum of 30 dwelling units per acre. This is a clarifying assertion within the draft housing element which articulates in the footnotes section of the program that the CT zones allows for 38 units per acre, thus meeting the minimum of 30 units per acre. • (New) Program 1.M: the City must include a New Program which commits the City implementing SB 9 regulations consistent with State law. Similarly to the comments received by HCD regarding ADU’s the City of Los Altos must amend its ordinance at any time there is conflict with State law.
58 Agenda Item # 3.

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• Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities.

The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583(c)(3).)
• The draft housing element has been revised to discuss potential governmental and nongovernmental constraints further. After further analysis constraints within the R3 Zone has been identified and modifications are necessary; Program 3.N, Modify Standards in the R3 zoning districts has been included to capture this requirement. • Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics... (Gov. Code, § 65583(c)(5).)
• HCD’s Findings Letter overarchingly requires the City to clarify the commitments of AFFH. Programs 2.D, 4.J, 6.C, 6.D, and 6.E, has committed the City to providing targeted outreach, ensuring safe and adequate infrastructure to all segments of the community, provide information on the City’s website, track and modify how Section 8 Vouchers are being used, and shorten the timeframe for when each program will be completed by.
o Programs 2.D, 4.J, 6.C, 6.D, and 6.E has each been amended to achieve the requirements of AFFH in a combined effort.

Planning Commission Recommendation
The Los Altos Planning Commission held a public hearing on January 5, 2023, to review and consider the 6th Cycle Housing Element. At the meeting the Planning Commission received a PowerPoint Presentation, asked questions of staff, received public testimony, deliberated, and by majority vote approved Planning Commission Resolution PC-2023-XX (Attachment 5).

Next Steps
Should the City Council adopt the Draft 6th Cycle Housing Element 2023-2031 tonight, the Development Services Director will then submit the final document to HCD for final concurrence.

The City must adopt the Sixth Cycle Housing Element 2023-2031 by January 31, 2023. 59 Agenda Item # 3.

Revised
60 Agenda Item # 3.

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1 | City of Los Altos 2023-2031 Housing Element
Contents
Section I Introduction............................................................................................................ 3 I.A Community Context............................................................................................... 3 I.B Housing Element Purpose..................................................................................... 3 I.C Organization of the Housing Element.................................................................... 4 I.D Data Sources and Methods................................................................................... 6 I.E Summary of Public Participation............................................................................ 6 I.F Consistency with Other General Plan Elements..................................................12 I.G Other Statutory Requirements.............................................................................13 Section II Projected Housing Need .....................................................................................13 II.A Introduction/Overview of ABAG Methodology .....................................................13 II.B Santa Clara County Income Limits......................................................................14 II.C Regional Housing Needs Allocation ....................................................................14 Section III Housing Resources .............................................................................................15 III.A Introduction..........................................................................................................15 III.B Land Resources ..................................................................................................15 III.C Financial and Administrative Resources .............................................................16 III.D Opportunities for Energy Conservation ...............................................................16 Section IV Housing Plan .......................................................................................................17 IV.A Goals, Policies, and Programs ............................................................................17 Goal 1: Promote new housing construction to meet Los Altos’ Regional Housing Needs Allocation (RHNA). ..............................................................................................17 Goal 2: Facilitate affordable housing to accommodate the housing needs of moderate- and lower-income households....................................................................................24 Goal 3: Remove constraints to the development of housing.................................................28 Goal 4: Create housing opportunities for people with special needs. ...................................35 Goal 5: Conserve and improve the existing housing stock. ..................................................39 Goal 6: Promote fair housing access and opportunities for all persons. ...............................42 Goal 7: Encourage energy and resource conservation and sustainability measures. ..........46 IV.B Quantified Objectives ..........................................................................................47 62 Agenda Item # 3.
2023-2031 Housing Element City of Los Altos | 2
Appendix A: Housing Needs Assessment
Appendix B: Sites Inventory and Methodology
Appendix C: Housing Constraints
Appendix D: Existing Programs Review
Appendix E: Public Participation Summaries
Appendix F: Affirmatively Furthering Fair Housing Assessment Appendix G: Housing Resources
63 Agenda Item # 3.
3 | City of Los Altos 2023-2031 Housing Element
Section I Introduction
I.A Community Context
Los Altos was incorporated in 1952; most of the City’s growth occurred between 1950 and 1980.

Los Altos was originally an agricultural town with many summer cottages and apricot orchards, and now is a residential community with tree-lined streets and a small-village atmosphere in the heart of world-famous Silicon Valley. Just 40 miles south of San Francisco, Los Altos is served by seven small retail districts, primarily in the Downtown area and on Foothill Expressway and El Camino Real. The seven square mile community is developed with various businesses, schools, libraries, and churches.

I.B Housing Element Purpose
The State of California has stated that the availability of decent and suitable housing for every California family is “a priority of the highest order” (California Government Code §54220). This objective has become increasingly urgent in recent years as communities across the State, including Los Altos, struggle to meet the housing needs of all their residents. State Housing Element Law, established in 1969, recognizes the vital role local governments play in the supply and affordability of housing and requires all cities and counties in California establish a long-range plan to meet their fair share of regional housing needs. Cities are charged with planning for the welfare of their citizens, including ensuring that the existing and projected demands for housing are adequately met.

High housing costs — and related housing instability issues — increase health care costs (for individuals and the State), decrease educational outcomes (affecting individuals, as well as the State’s productivity), and make it difficult for California businesses to attract and retain employees.
– State of California 2025 Statewide Housing Assessment The housing element is the primary tool used by the State to ensure local governments are appropriately planning for and accommodating enough housing across all income levels. This Housing Element covers the planning period 2023-2031. The housing element is a mandatory part of a jurisdiction’s General Plan, but differs from other General Plan elements in two key aspects. The housing element must be updated every eight years for jurisdictions within a metropolitan planning organization (MPO) on a four-year regional transportation plan (RTP) cycle, such as the Association of Bay Area Governments (ABAG). The housing element must also be reviewed and approved (i.e., certified) by the California Department of Housing and Community 64 Agenda Item # 3.
2023-2031 Housing Element City of Los Altos | 4
Development (HCD) to ensure compliance with statutory requirements. Certification also ensures that the City remains eligible for various State and federal funding sources.

In practical terms, the Housing Element provides the City with an opportunity to assess its housing needs and to develop policies and actions that effectively respond to those needs. Amongst other groups, the Housing Element affects teachers in our schools, employees in our local businesses, older residents on fixed incomes, parents and their adult children who want to remain in or return to Los Altos, and young persons wishing to live in the community. Ultimately, the supply and cost of housing affect the entire Bay Area economy and people’s quality of life in the region.

At the time of publication, the COVID-19 crisis has impacted the Bay Area in significant ways.

The pandemic has made the issue of housing security even more acute as residents face job loss, housing cost pressures, and disparate health impacts from the pandemic. This Housing Element has had to respond to these conditions by transitioning the public outreach process to reflect the limitations brought on by COVID-19. These actions are detailed in this report.

I.C Organization of the Housing Element
Per California Government Code §65580-65589, a housing element must consist of the following components:
• Existing Programs Review: An evaluation of the results of the goals, policies, and programs adopted in the previous Housing Element that compares projected outcomes with actual achieved results. • Housing Needs Assessment: An analysis of the existing and projected housing needs of the community. It provides a profile of socio-demographic information, such as population characteristics, household information, housing stock, tenure, and housing affordability. The assessment also considers local special housing needs, such as, seniors, farmworkers, homeless, large households, and female-headed households. • Sites inventory and Methodology: An inventory listing adequate sites that are suitably zoned and available within the planning period to meet the City’s fair share of regional housing needs across all income levels. • Housing Resources: An identification of resources to support the development, preservation, and rehabilitation of housing. 65 Agenda Item # 3.
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• Housing Constraints: An assessment of impediments to housing production across all income levels covering both governmental (e.g., zoning, fees, etc.) and nongovernmental (e.g., market, environmental, etc.).
• Affirmatively Furthering Fair Housing Assessment: AB 686 requires cities and counties to take deliberate actions to foster inclusive communities, advance fair and equal housing choice, and address racial and economic disparities through local policies and programs. The goal of AB 686 is to achieve better economic and health outcomes for all Californians through equitable housing policies. The assessment of affirmatively furthering fair housing documents compliance with AB 686. • Goals, Policies, and Programs: This Section provides a statement of the community’s goals, quantified objectives, and policies to maintain, preserve, improve, and develop housing, as well as a schedule of implementable actions to be taken during the planning period to achieve the goals, objectives, and policies. Quantified objectives for new construction, rehabilitation, and conserved units by income category (i.e., very low, low, moderate, and above moderate) are included to make sure that both the existing and the projected housing needs are met, consistent with the City’s share of the Regional Housing Needs Allocation (RHNA).

Section II provides a summary of the projected housing need. Section III summarizes the adequacy of housing sites and housing resources with reference to relevant appendices. Section IV contains goals, policies, and actions related to housing in Los Altos. The comprehensive research and analysis supporting the development of Section IV, are compiled in appendices to this Housing Element. These appendices contain the full set of information used to inform the City’s goals, policies, and programs:
• Appendix A: Housing Needs Assessment
• Appendix B: Sites Inventory and Methodology
• Appendix C: Housing Constraints
• Appendix D: Existing Programs Review
• Appendix E: Public Participation Summaries
• Appendix F: Affirmatively Furthering Fair Housing Assessment 66 Agenda Item # 3.
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• Appendix G: Housing Resources
I.D Data Sources and Methods
This Housing Element was updated in accordance with California Department of Housing and Community Development (HCD) guidelines for the 6th Housing Element Cycle, incorporating additional considerations required under new State housing-related legislation. Specific documents are referenced throughout the Housing Element, including but not limited to the Los Altos General Plan 2002-2020 and Los Altos Municipal Code. The analyses and findings in this document relied on data compiled from various sources, including:
• US Census Bureau (American Community Survey, Longitudinal Employer-Household Dynamics)
• California Department of Housing and Community Development (HCD) • California Department of Finance (DOF)
• US Department of Housing and Urban Development (HUD)
• Consumer Financial Protection Bureau (CFPB)
• Association of Bay Area Governments (ABAG) pre-certified data This document was also informed by information provided by residents, business groups, local institutions, City staff, and elected officials.

I.E Summary of Public Participation
Public participation is crucial in shaping Los Altos’ housing strategy. Understanding the needs of the community enables the development of housing strategies that are most appropriate and effective. Public outreach also allows the City to identify concerns unique to certain interest groups and service providers that may not have been initially apparent. As part of the development of this Housing Element, the City’s public participation program included a wide range of focus group meetings, community workshops, and meetings with the Planning Commission and City Council, as well as a variety of online resources and comment forms, and printed advertisements within the Town Crier Newspaper. Outreach activities are summarized below. For detailed public outreach summaries, please see Appendix E.

Website
The Housing Element Update website (https://www.LosAltosHousing.org) was used to provide information on the Housing Element update process and timeline, resources (e.g., reference material, draft documents, etc.), meeting notices and materials, and City contact information. Any person could sign up to receive email notifications about upcoming meetings and availability of information. The website was translatable into over 10 languages (e.g., Chinese (simplified), 67 Agenda Item # 3.
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Spanish, etc.), and key resource materials were translated into both Spanish and simplified Chinese. Additionally, the website offered multiple opportunities for online input through community feedback forms available throughout the process.

Public Outreach and Events
Pop-Up Events
The pop-up events provided information regarding the Housing Element update process, including frequently asked questions and informational handouts, at various locations throughout the City as follows:
• Tree Lighting/First Friday in Downtown Los Altos: December 3, 2021 • Grant Park Community Center: December 8, 2021
• Los Altos Library: December 10, 2021
• Mini Holiday Market at State Street Market: December 20, 2021 • Woodland Library: January 5, 2022
• Draegers: February 25, 2022
• Los Altos Library: March 10, 2022
• Grant Park Community Center: March 23, 2022
Focus Group Meetings
Focus group meetings were held to gain greater insight into the highest priority housing considerations from the perspective of various interest groups, including housing developers and housing advocates. This enabled the City to better understand local challenges and opportunities that may not be effectively gathered in a larger group setting. Focus group discussions were guided by open-ended questions about fair housing issues, market characteristics, development constraints, and housing needs. Since not all invitees were able to attend the scheduled focus group meetings, questions discussed at these meetings were provided via email to all invitees to provide input at their convenience.
• Housing Advocates: December 8, 2021
• For- and Non-Profit Housing Developers: December 15, 2021 The City also conducted a meeting with the business community on April 7, 2022 Small Group Meetings
A series of over 25 small group meetings occurred from January to March 2022 which included over 120 participants and interested parties including Los Altos Village Association, Los Altos for Neighborly Development, property owners, residents, Friends of Los Altos, the Los Altos Women’s Caucus, Los Altos Affordable Housing Alliance, and others. These meetings allowed 68 Agenda Item # 3.
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individuals and groups to ask questions, learn more about the Housing Element update process, and provide input.

Community Workshops
Workshops provided opportunities for community input and discussion at multiple stages of the process. The first community workshop focused on listening to participants input on housing needs, constraints to housing, and housing opportunities. The second community workshop consisted of a discussion of potential housing sites and options for zoning amendments to accommodate additional housing capacity.
• Community Workshop #1: January 13, 2022 (presentation materials were translated into both Spanish and simplified Chinese)
• Community Workshop #2: March 1, 2022 (a Spanish interpreter provided interpretation services)
City Council/Planning Commission Study Sessions
Study sessions were conducted with the City Council and Planning Commission to provide opportunities for input and discussion prior to preparation of the draft Housing Element. Public comments were also provided at these study sessions.
• Planning Commission and City Council Study Session #1: December 14, 2021 • Planning Commission and City Council Study Session #2: April 26, 2022 A Planning Commission meeting was also held on February 3, 2022 to primarily discuss constraints to housing and opportunities to facilitate housing in Los Altos.

Affirmatively Furthering Fair Housing Targeted Outreach The City conducted targeted outreach to solicit input on housing needs and challenges facing populations disproportionately impacted by fair housing issues. This included sending letters to over 200 local and regional contacts, including community organizations, schools, Foothill College, equity advisory group members, providers of fair housing organizations, the Santa Clara County Housing Authority, and local employers. Those contacted were encouraged to meet with City staff to discuss challenges and concerns faced by residents and the groups they serve or represent early in the process. Some of these contacts met with City staff as part of the Small Group Meetings discussed above, or otherwise provided comment. 69 Agenda Item # 3.
9 | City of Los Altos 2023-2031 Housing Element
The City also distributed a questionnaire or feedback form to employers aimed at soliciting feedback from the local workforce. These forms were provided in both English and Spanish.

To ensure the broadest reach, the City sought input from difficult to reach segments of the community though various methods. This included pop-up events, focus group meetings, online engagement, postcard mailers to all residents, direct mailings to service providers, street banners, and window cards at all businesses in the city. A focus group meeting was held with housing advocates that included the Community Services Agency (CSA) of Mountain View and Los Altos.

The CSA largely serves the senior population in Los Altos and provided feedback regarding needs and constraints. Input and issues raised during this outreach has been integrated into the Housing Element as summarized below. Housing Element programs also include future outreach and information dissemination to all economic segments of the community, special needs populations, and lower income households, including those outside of Los Altos to support housing mobility (e.g., Programs 6.D and 6.E).

Draft Housing Element Public Review Period and Meetings Based on input received during outreach efforts, a draft Housing Element was prepared. The draft Housing Element was available for public review from June 22 through July 24, 2022 (33 days).

Notification of availability for review was advertised in the local newspaper, Housing Element Update newsletter/email distribution list, and at Planning Commission and City Council meetings.

The following public meetings were held to discuss the draft Housing Element and provide opportunity for public comment:
• Planning Commission: July 7, 2022
• City Council: July 12, 2022
Public comments were also provided through the website and directly to City staff. City staff took more than 10 business days to consider and incorporate comments into the revised draft Housing Element that was submitted to HCD for review.

Draft Housing Element Study Session Post 90-day HCD Review Based on the input received from HCD in its November 10, 2022 findings letter, the Los Altos City Council conducted a Study Session on November 29, 2022 to discuss the necessary revisions to the Draft Housing Element.

Community Engagement Efforts Post 90-day HCD Review
• November 18, 2022 – Small Group Meeting with the Los Altos Affordable Housing Alliance • November 30, 2022 – Small Group Meeting with Nonprofit Dignity Moves a Bay Area Transitional and Supportive Housing Developer
• December 7, 2022 – Presentation and Q&A to Los Altos Chamber of Commerce • December 12, 2022 – Small Group Meeting with Los Altos Seniors 70 Agenda Item # 3.
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• December 16, 2022 – Presentation and Q&A to Los Altos Community Coalition • December 16, 2022 – Small Group Meeting with Los Altos Residents • December 16, 2022 – Presentation and Q&A to League of Women Voters Summary of Public Comments
A summary of key themes from public comments is presented below. Please see Appendix E for comprehensive summaries from the community workshops, focus group meetings, and draft Housing Element meetings.
• There are not enough new housing units being built in Los Altos. • The mix of housing types in Los Altos is limited. There is a need for affordable housing in a range of sizes and types.
• The City should prioritize new housing in areas that have transit, are walkable, and have access to services, schools, and businesses.
• Housing should be available for critical or essential workers like firefighters, City staff, and teachers.
• Housing should be attainable for commuters living outside of Los Altos but work in Los Altos.
• Senior housing should be provided to accommodate an aging population. • Housing for persons with disabilities, including development disabilities, should be provided.
• Concern about the impact additional housing could have on parking, traffic, open space, trees, and privacy.
• Los Altos should protect its small-town character, and new development should be designed to consider neighboring homes.
• Concern about neighborhood commercial areas converting into residential. • Support for converting offices into residential.
• Parking requirements are a significant constraint to housing development, such as in Downtown.
• ADU approvals should happen more quickly; the processing of ADUs should be streamlined. The City needs to eliminate the Planning Division “pre-review” of ADUs. • The City should allow greater flexibility of housing developments to allow for varying architecture; “the standards are too prescriptive”.
• The City should allow a variety of dense affordable housing. Higher density should be allowed along El Camino Real.
71 Agenda Item # 3.
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• The City’s development review process should be more efficient, and the story pole requirement removed. During the public review period, both support and opposition were voiced for removing the story pole requirement (i.e., Program 3.L). • The City Council should not have final review of development. Los Altos should be like other cities where Planning Commission is the only review. During the public review period, both support and opposition were voiced for reducing the City Council’s role in development review (i.e., Program 3.H).
• New homes should be energy efficient in their design and construction. • The City should plan for infrastructure needs (water, schools, traffic, etc.) when considering new housing.
• Support for the draft Housing Element, including the proposed programs for rezoning addressing parking.
• Concern about rezoning the Office Administrative (OA) District to allow for housing related to parking and potential building heights and lot dimensions. • Comments related to the Village Court parcel zoning and the program to rezone it to allow for higher density (Program 1.F).
• Support for including church parking lots as housing sites. • Suggestions for additional potential sites.
• Concern about including grocery stores as housing sites and the distribution of sites throughout the city.
• Concern about various issues with the 2100 Woods Lane site (APNs 34204089 and 34204078), including riparian area, topography, and ingress/egress.

Integration of Comments into the Housing Element
The comments provided have been incorporated and addressed in the updated Housing Element, specifically through the Housing Needs Assessment (Appendix A), the Sites Inventory and Methodology (Appendix B), Affirmatively Furthering Fair Housing (Appendix F), and through programs. Additionally, the City expanded outreach efforts to directly target underrepresented populations and populations disproportionately impacted by fair housing issues based on comments received early in the process. Various programs that address comments include the following:
• Rezone land to allow more opportunity for housing throughout the city, including areas served by transit (various programs under Goal 1).
• Allow for and encourage a variety of housing types to accommodate housing needs, including removing minimum unit size requirements (Programs 1.E and various programs under Goals 3 and 4).
72 Agenda Item # 3.
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• Incentivize housing for special needs groups, including seniors and people with disabilities, including developmental disabilities (Program 4.H). • Develop a reasonable accommodation ordinance and promote resources to assist seniors in maintaining and rehabilitating their homes (Programs 4.F and 4.G). • Facilitate alternate modes of transportation for residents throughout the city to encourage walking, biking, and transit use, and to help meet the needs of seniors and persons with disabilities (Program 4.J).
• Prepare a parking plan for Downtown and update parking requirements to reflect best practices, meet community needs, and facilitate housing (Program 3.A). • Allow residential within the Office Administrative Zone to allow existing office space to convert or add housing to existing developments (Program 1.C). • Encourage and streamline ADUs through various actions, including standard ADU building plans (Program 2.D).
• Remove the density limit along El Camino Real (Commercial Thoroughfare Zone) (Program 1.B).
• Amend the design review process and requirements, including removing the story pole requirement and having City Council function as an appeal body only (Programs 3.H and

3.L).
• Promote sustainability measures in housing through implementation of the City’s Climate Action and Adaptation Plan and raising awareness (Program 7.A). • Create development standards for the Rancho Shopping Center and Woodland Plaza sites, where grocery stores exist and restrictive FAR standards would be removed, that require both commercial and residential (Program 3.C).

I.F Consistency with Other General Plan Elements
The Housing Element is one of the eight elements of the City’s General Plan, a long-range vision document that provides guidance for future development in Los Altos. City Council adopted its General Plan in 2002. For the General Plan to provide effective guidance on land use issues, the goals, policies, and programs of each element must be internally consistent with other elements.

This Housing Element builds upon the existing General Plan and is consistent with its goals and policies. Various Housing Element programs require Zoning Code amendments, and some will require amendments to the General Plan for consistency. As those Housing Element programs are implemented, the General Plan will be amended concurrently to ensure consistency across planning documents. In the event an element of the General Plan is amended, the City will consider the impacts of the amendment on the other elements to maintain consistency across all documents.
73 Agenda Item # 3.
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I.G Other Statutory Requirements
Water and Sewer Priority
Government Code §65589.7 requires each public agency or private entity providing water or sewer services to grant a priority for the provision of these services to proposed developments that include lower income housing units. In Los Altos, water service is provided by the California Water Service Company and the Santa Clara Valley Water District, while sewer services are provided by the City of Los Altos Public Works Department in concert with the Palo Alto Regional Water Pollution Control Plant. The City has not denied, applied conditions, or reduced the amount of sewer service for a development that includes housing affordable to lower-income households consistent with State law. As part of this Housing Element, the City will continue to comply with these requirements (see Program 2.F).

Government Code §65589.7 also requires adopted housing elements to be immediately delivered to all public agencies or private entities that provide water or sewer services for municipal and industrial uses, including residential. The City will provide the future adopted housing element to the California Water Service Company, Santa Clara Valley Water District, and Palo Alto Regional Water Pollution Control Plant.

Section II Projected Housing Need
II.A Introduction/Overview of ABAG Methodology
State Housing Element law (Government Code §65580 et. seq.) requires regional councils of governments to identify for each member jurisdiction its "fair share allocation" of the Regional Housing Needs Assessment provided by the California Department of Housing and Community Development (HCD). In turn, each city and county must demonstrate the capacity to accommodate their local share of regional housing needs in the community’s housing element.

Each jurisdiction’s responsibility for meeting the overall regional housing need is established as a Regional Housing Needs Allocation (RHNA).

The Association of Bay Area Governments (ABAG), the council of governments for the Los Altos area, adopted its final 6th Cycle RHNA allocation methodology in December 2021. ABAG considered several factors in preparing the methodology, which weighed both projected and existing need. Projected need was informed by the target vacancy rate, the rate of overcrowding, and the share of cost-burdened households household growth, future vacancy need, and replacement need, while existing need considered transit accessibility and job accessibility. The distribution of the RHNA across the four income categories factored in a social equity adjustment, which allocated a lower proportion of lower-income RHNA to jurisdictions that already had a high concentration of such households in comparison to the County, as well as the goal to Affirmatively Further Fair Housing (AFFH), which adjusted the distribution of RHNA in jurisdictions considered 74 Agenda Item # 3.
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either very low or very high resource areas. According to Appendix 6 of ABAG’s Draft RHNA Plan, Los Altos had a net zero change in RHNA on account of the equity adjustment.

II.B Santa Clara County Income Limits
The projected housing needs are broken down by income category based on definitions in the California Health and Safety Code (§50079.5). HCD calculates “acutely low”, “extremely low”, “very low”, “low”, “median”, “moderate”, and “above moderate” income limits, and publishes these limits at the county level. Santa Clara County’s 2021 income limits for households of one to four persons are shown in Table II-1. See Appendix A, Table A-5, for a table listing income limits for households of up to eight persons.

Table II-1: Santa Clara County 2021 Income Limits
Number of Persons in Household 1 2 3 4
Acutely Low (0-15% of AMI)1 $15,900 $18,150 $20,450 $26,350 Extremely Low (15-30% of AMI) $34,800 $39,800 $44,750 $49,700 Very Low (30-50% of AMI) $58,000 $66,300 $74,600 $82,850 Low (50-80% of AMI) $82,450 $94,200 $106,000 $117,750
Median (80-120% of AMI) $105,900 $121,050 $136,150 $151,300 Moderate (120% of AMI) $127,100 $145,250 $163,400 $181,550 1 “Acutely Low” income category effective January 1, 2022.

Source: Department of Housing and Community Development, 2021 II.C Regional Housing Needs Allocation
The RHNA for Los Altos is shown in Table II-2. The City has a total allocation of 1,958 units for the 2023 to 2031 planning period.

Table II-2: 6th Cycle RHNA
Los Altos Santa Clara County ABAG
Income Number of
Units
Percent Number of
Units
Percent Number of
Units
Percent
Total 1,958 100% 88,997 100% 441,176 100%
Extremely Low and Very
Low1 501 25% 32,316 25% 114,442 26%
Low 288 15% 18,607 14% 65,892 15%
Moderate 326 17% 21,926 17% 72,712 17%
Above Moderate 843 43% 56,728 44% 188,130 42%
1 “Extremely Low” included in “Very Low” Category, assumed to be 50% of the Very Low allocation.

Source: ABAG, LWC
75 Agenda Item # 3.
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The City is not responsible for the actual construction of these units. The City is, however, responsible for creating a regulatory environment in which the private market could build unit types reflected in the RHNA. This includes the creation, adoption, and implementation of General Plan policies, zoning standards, and/or economic incentives to encourage the construction of various types of units.

Section III Housing Resources
III.A Introduction
There are a variety of resources available to support the City in implementation of its housing strategy, landowners and developers seeking to provide affordable housing, and residents in need of housing assistance in Los Altos. This Section provides a summary of land resources available to accommodate future housing in the City. The detailed housing capacity analysis and methodology is contained in Appendix B. This Section also includes a list of local, regional, State, and federal programs that provide financial and related assistance to support the City in meeting its housing goals.

III.B Land Resources
A critical part of the Housing Element is the sites inventory, which identifies a list of sites that are suitable for future residential development. State law mandates that each jurisdiction ensure availability of an adequate number of sites that have appropriate zoning, development standards, and infrastructure capacity to meet its fair share of regional housing need (i.e., RHNA) at all income levels. The inventory is a tool that assists in determining if the jurisdiction has enough land to meet its RHNA given its current regulatory framework.

Identification of Sites Suitable for Housing
The sites identified in the site inventory (Appendix B) are comprised of parcels located in various areas and zones within the City.

Each site has undergone an assessment to determine development potential and residential unit capacity given existing zoning standards, potential capacity under new zoning regulations, and development trends. For detailed information, please see Appendix B.

Summary of Adequate Sites
Table III-1 summarizes the City’s methods for satisfying its RHNA. Based on accessory dwelling unit (ADU) projections, entitled and proposed projects, and available 6th Cycle sites (including a rezoning program in order to meet the City’s RHNA Allocation), the City has enough capacity in all income categories.
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Assumptions and methodology for this determination and a detailed list of sites are included in Appendix B.

Table III-1: Residential Development Potential and RHNA

Extremely
Low Very Low Low Moderate Above Moderate Total
RHNA See Very Low 501 288 326 843 1,958
ADUs See Very Low 16 97 161 48 322
Approved/Entitled Projects - 6 123 38 420 587
Remaining RHNA See Very Low 479 68 127 375 1,049
Site Inventory1 See Very
Low/Low 557 168 323 1,048
Surplus/(Shortfall) 10 41 (52) (1)
Rezone Sites (Net New) 408 128 64 600
Surplus/(Shortfall) with
Rezone Sites 418 169 12 599

1. Considers net new units only.

See Appendix B (Sites Inventory and Methodology) for supporting information, including Table B-3 (entitled and approved developments, page B-5, and Tables B-10 and B-11 for sites inventory tables, pages B-24 through B-29).

Source: City of Los Altos, LWC 2022
III.C Financial and Administrative Resources
Appendix G provides a list of financial, administrative, and other resources at the local, regional, state, and federal levels to help the City address its housing needs. Availability of these resources is dependent on governmental priorities, legislation, and continued funding, which may be subject to change at any time.

III.D Opportunities for Energy Conservation
The cost of energy can greatly impact housing affordability, as energy costs can constitute a significant portion of total housing costs. High energy costs also particularly impact low-income households that are less likely to have the ability to cover increased expenses. Please refer to Appendix G to see a list energy conservation programs available at the local, regional, State, and federal levels.
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Section IV Housing Plan
IV.A Goals, Policies, and Programs
The Housing Plan of the Housing Element serves as the City’s strategy for addressing its housing needs. This Section describes the housing goals, policies, and programs of the Housing Element for the City of Los Altos.

Goals are aspirational purpose statements that indicate the City’s direction and intent on housing-related needs. Each goal encompasses several policies, which are statements that describe the City’s preferred course of action among a range of other options.

Each goal also includes programs, which provide actionable steps to implement the City’s goals and to further the City’s progress towards meeting its housing allocation. Some programs contain quantified objectives, which represent measurable outcomes that can be used to benchmark the success of each program.

This Housing Element contains actions intended to significantly increase the amount and types of housing for all income levels in Los Altos. These efforts are expected to be initiated throughout the planning period, which is from January 31, 2023, to January 31, 2031. In accordance with State law, the City will also evaluate the progress and effectiveness of Housing Element programs on an annual basis. Together, these actions reflect the City’s commitment to increasing affordable housing and improving existing housing conditions.

The following list of goals, policies, and programs includes a combination of strategies, including a continuation of existing successful policies and programs as well as new policies and programs to tackle emerging opportunities and constraints, address changes in State law, and provide innovative approaches to accommodate the larger RHNA.

Goal 1: Promote new housing construction to meet Los Altos’ Regional Housing Needs Allocation (RHNA).

Policies
Policy 1.1: Diversity of Housing Types.

The City will encourage a diverse range of both market-rate and affordable housing sizes and residential densities to accommodate the varied housing needs of families, couples, and individuals.

Policy 1.2: Mixed-Use Development.

The City will encourage mixed-use development in designated zoning districts. 78 Agenda Item # 3.
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Policy 1.3: New Rental Units.

The City will encourage the development of new rental units in multi-family districts.

Programs
Program 1.A: Rezone for RHNA shortfall.

To accommodate the remaining above moderate-income RHNA of 52 units, the City will identify and rezone sufficient vacant land or land with redevelopment potential to provide capacity for this shortfall. Appendix B (Sites Inventory and Methodology) identifies potential parcels for rezoning to address this shortfall and provide excess capacity throughout the planning period. Separate programs detail specifics of various rezoning actions that would provide additional capacity for all income levels.

Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: Sites rezoned to address shortfall by January 2024 Objective: The City will amend the Zoning Map and/or Zoning Code to create the opportunity for at least 52 above moderate-income housing units Program 1.B: Facilitate higher density housing in the Commercial Thoroughfare (CT) District.

The Commercial Thoroughfare (CT) Zone is located along El Camino Real with a maximum density of 38 units per acre and a maximum height of 45 feet. Development trends in this area are showing much higher densities and heights being built. To continue to facilitate housing in the CT District, the City will remove or increase the density maximum and increase the height allowed in the CT District by at least 10 feet and one story which will result in a maximum height of 55 feet and 5-stories to ensure the increased maximum density can be accommodated. Objective design standards for the CT District will be modified as necessary to accommodate higher density.

Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: December 2024
Objective: Approve housing development projects along El Camino Real at densities above 38 units per acre anticipating at least 50 total housing units with at least 10 lowincome units. 79 Agenda Item # 3.
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Program 1.C: Allow housing in the Office Administrative (OA) District.

The Office Administrative (OA) District, primarily located along South San Antonio Road (east of Downtown), does not currently allow residential uses. However, given the high demand for housing in Los Altos and the opportunity to provide for housing in a mixed-use environment with access to transit, the sites identified in the OA District (Appendix B, Table B-11) will be amended to allow multi-family development. Residential uses will be allowed at a minimum density of 20 dwelling units per acre and a maximum density of 30 dwelling units per acre.

Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: December 2024
Objective: Permit housing on at least three (3) OA District parcels during the planning period comprising at least 30 total housing units with at least five low-income units in the highest resource areas of the city.

Program 1.D: Allow housing on certain Public and Community Facilities District sites and facilitate housing on religious institution properties.

Assembly Bill (AB) 1851 (2020) encourages the use of religious facility properties (including parking lots) for housing projects. Certain religious facility properties are zoned Public and Community Facilities (PCF) District, which does not allow multi-family residential. To facilitate the production of housing on religious facility sites, the City will create an overlay for two religious facility properties within the PCF District: 655 Magdalena Avenue (APN 33609023) and 625 Magdalena Avenue (APN 33609018). The overlay will allow religious institution affiliated housing development by right, at a minimum of 20 dwelling units per acre and a maximum of 30 dwelling units per acre and include parking requirements consistent with State law.

The City will conduct outreach to owners and operators of religious institution sites to raise awareness of regulations that encourage housing on such sites and encourage housing proposals.

Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: December 2025; outreach at least every two years (December 2025, 2027, and 2029) or until housing applications are received
Objective: Facilitate an application for at least 10 units of housing for lower income and/or special needs households on religious institution site(s) during the planning period 80 Agenda Item # 3.
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Program 1.E: Update the Loyola Corners Specific Plan.

The Loyola Corners Specific Plan will be updated or rescinded and revert to underlying zoning (CN District) to facilitate housing production. This includes removal of all standards that are more restrictive than those applicable within the CN District. Standards to be eliminated include the 20- unit density cap (enforcement of this limitation is currently precluded by the Housing Crisis Act), the dwelling unit size requirement of between 1,500 and 8,000 square feet, and the two-story height limitation in addition to a 30-foot maximum height (Resolution 2017-41). The eliminated standards will provide regulations that allow development at greater densities than what is presently allowed today, increased building heights and greater flexibility in unit sizes. The Loyola Corners Specific Plan is considered a highest resource area with the most positive educational outcomes (see Appendix F, Section F.2.5 (Access to Opportunity)).

Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: December 2024
Objective: Modify or eliminate restrictive development standards within Loyola Corners Specific Plan for density, height, and unit size. Permit housing units in the Loyola Corners Specific Plan above the current 20-unit cap and with a mixture of unit sizes during the planning period. Target approval of at least 30 total housing units with at least five lowincome units.

Program 1.F: Rezone Village Court parcel.

To facilitate housing, the Village Court parcel at 4546 El Camino Real (APN 16712042) will be rezoned from R1-10 to Commercial Thoroughfare (CT), and modifications made to the Planned Unit Development (62-PUD/C7), as necessary for consistency with the CT District. The City will consult with adjacent property owners and interested parties throughout the Village Court rezone program.

Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: December 2025
Program 1.G: Rezone housing sites from previous Housing Elements.

Under AB 1397, certain rezoning requirements apply if a lower income housing site identified in the sites inventory (Appendix B) was identified as a housing site (for any income level) in a previous housing element’s site inventory. The following vacant and nonvacant lower income sites are subject to the rezoning requirements:
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• Vacant lower income sites that have been included in at least two consecutive housing element sites inventories.
• Nonvacant lower income sites that have been included in a prior housing element sites inventory.

The City will make necessary zoning amendments to allow development by right pursuant to Government Code §65583.2(i) when 20 percent or more of the units are affordable to lower income households on sites identified in Table IV-1.

Table IV-1: Previous Housing Element Cycle Sites to be Rezoned Address APN Parcel Size (ac) Zone Lower Income
Units Capacity1
El Camino Real 17003084 0.54 CT 22
4844 El Camino
Real 17002023 0.55 CT 22
5000 El Camino
Real 17004050 0.62 CT 25
4546 X El Camino
Real 16712047 1.69 CT 67
4546 El Camino
Real 16712042* 2.78 R1-10* 111
1 These figures represent the total units accounted for after implementation of Program 1.B to increase density in the CT District (not net units arising from that Program). Currently, prior to implementation of Program 1.B, the CT District allows a density of 38 dwelling units per acre.
* To be rezoned CT. See Program 1.F above.

Source: City of Los Altos, Santa Clara County Assessor, LWC Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: January 2024
Program 1.H: Facilitate housing on City-owned sites.

The City will facilitate development of housing on City-owned sites through public-private partnerships during the planning period. City-owned Downtown Parking Plazas 7 and 8 were identified as opportunity sites that could accommodate new development, including affordable housing. The first RFP issued by the City for housing on either Parking Plaza 7 or 8 will be affordable housing and the City will commit to selecting the development proposal that maximizes public benefit in creating additional affordable housing in Downtown Los Altos. Prior to the RFP issuance, the City shall hire a third-party to analyze what the minimum financially feasible affordable housing production could be, based upon a minimum of 20 years of a zero-cost land lease and a commitment to provide a minimum 55-year lease. In the event the development is 100 percent affordable as defined by law, the City shall waive all applicable development impact 82 Agenda Item # 3.
2023-2031 Housing Element City of Los Altos | 22
fees per Program 2.C. The City will comply with all Surplus Land Act requirements. The City will provide a dedicated project planner to facilitate an expedited project review process.

Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund, State or federal grant funds (if available).

Time Frame: Financial analysis for Parking Plaza 7 and 8 by independent third-party consultant by the end of 2023; release request for proposals by December 2023; complete entitlements within one (1) year of application if not sooner (by December 2026) Objective: The City will enter into a public-private partnership for development of housing on at least one of the City’s Downtown parking plazas.

Program 1.I: Incentivize Downtown lot consolidation.

In certain portions of Downtown, particularly along Main Street and State Street, the presence of small lots, fragmented ownership pattern, and lack of ability to provide on-site parking may constrain future development. Considering other programs addressing governmental constraints (see programs under Goal 3), the City will evaluate and adopt (through the Zoning Code or by resolution, as appropriate) complementary incentives to further encourage lot consolidation in Downtown. This may include expedited application processing, reduction in application fees, reduction in permit fees, or other incentives. The City will promote the lot consolidation incentives on the City’s website and through regular updates at the Planning Commission and City Council public meetings. Additionally, Policy 3.7 in the Community Design & Historic Resources Element of the General Plan will be modified for consistency with this Program.

Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: Adoption of incentives and amendment of Community Design & Historic Resources Element by July 2026; promotion to occur annually thereafter.

Program 1.J: Produce annual housing status reports.

Provide an annual status report to the City Council and California Department of Housing and Community Development (HCD) on the status of the General Plan housing programs and their implementation as required by State law. This status report will also address no net loss requirements as necessary throughout the planning period.

Responsible Body: Development Services Department
Funding Source: General Fund
Time Frame: Annually by April 1 (submitted to HCD)
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Program 1.K: Participate in regional housing needs planning efforts.

The City will actively participate in the Association of Bay Area Governments (ABAG) Regional Housing Needs Determination and other regional discussions about meeting housing needs. The City will meet with ABAG staff to provide land use, housing, employment, and other information related to the RHNA formula to ensure that the allocation accurately represents Los Altos’ fair share of the region’s housing needs.

Responsible Body: Development Services Department
Funding Source: General Fund
Time Frame: Ongoing
Program 1.L: General Plan amendments.

To ensure consistency between the City’s General Plan and the Zoning Code, the City will amend the General Plan to allow the uses and densities as proposed in all Housing Element programs.

Responsible Body: Development Services Department
Funding Source: General Fund
Time Frame: See various rezoning programs above.

Program 1.M: SB 9 implementation.

In December 2021, the City established objective standards to implement Chapter 162, Statutes of 2021 (SB 9), effective January 1, 2022. Consistent with these objective standards, the City will continue implement SB 9 in compliance with State law. The City will continue to annually monitor the effectiveness and appropriateness of existing adopted policies and update the ordinance as needed and will ensure that its local ordinance remains consistent with State law, but will apply current state law even before local amendments are adopted.

Responsible Body: Development Services Department
Funding Source: General Fund
Time Frame: Ongoing
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Program 1.N: Facilitate and monitor pipeline housing projects.

To ensure completion of the entitled or proposed (i.e., pipeline) projects identified in Table B-3 of Appendix B: Sites Inventory & Methodology within the planning period (by January 31, 2031), the City will monitor progress of these projects and will coordinate with applicants to facilitate remaining approvals and permits. If a pipeline project is not approved, the City will ensure adequate capacity for the remaining RHNA is provided through monitoring of no net loss during annual reporting (see Program 1.J).

Responsible Body: Development Services Department
Funding Source: General Fund
Time Frame: Ongoing
Goal 2: Facilitate affordable housing to accommodate the housing needs of moderate- and lower-income households.

Policies
Policy 2.1: New Affordable Housing Units.

The City will facilitate the development of new affordable housing units.

Policy 2.2: Affordable ADUs.

The City will encourage the development of affordable Accessory Dwelling Units (ADUs).

Programs
Program 2.A: Continue to implement and enhance inclusionary housing requirements.

The City will continue to implement inclusionary housing requirements. The City will also evaluate these requirements to assess their effectiveness in meeting the City’s goals and objectives in the Housing Element. Specifically, the City will assess the following:
• Inclusionary housing rates (e.g., 15 and 20 percent). • Affordability levels, including proportions of extremely low, very low-, low-, and moderate-income units, with the potential for an alternative mix of affordability allowed if it would better meet housing policy objectives. For example, if a project provided deeper affordability, and/or resulted in the production of units suitable for special needs groups such as seniors or persons with disabilities, including those with developmental disabilities.
• Affordability terms, including requiring the longest term allowable for both rental and ownership inclusionary units.
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The evaluation will result in strategies and amendments to support the production of affordable housing more effectively through inclusionary housing. Although the City does not currently accept in-lieu inclusionary housing fees, under Program 2.B below, the City will establish in-lieu fees to offer options to housing developers.

Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: Complete evaluation and adopt amendments by end of year 2023 Objective: Inclusionary housing unit production of at least 40 moderate-income units, 25 low-income units, and five very low-income units.

Program 2.B: Establish an affordable housing in-lieu fee and commercial linkage fee.

The City will conduct a feasibility analysis to support the establishment of an affordable housing in-lieu fee for residential developments and a commercial linkage fee for affordable housing.

Based on this analysis, the City will adopt such fees. Said analysis will also ensure that the in-lieu fees adopted are not a constraint to housing development. As a part of the establishment of an affordable housing in-lieu fee and commercial linkage fee the City will conduct outreach to all stakeholders including residents, property owners, and housing and commercial developers.

Responsible Body: Development Services Department, City Council, Planning Commission
Funding Source: General Fund
Time Frame: Adopt housing in-lieu fee by the end of 2023; begin commercial linkage fee for affordable housing by end of year 2025.

Program 2.C: Assist in securing funding for affordable housing projects.

To promote the development of affordable housing projects, and when requested by the project sponsor, the City will continue to assist in securing funding for low- and moderate-income housing developments through the following actions (all of the incentives below are currently in place except for providing funding for multi-jurisdictional housing finance programs and partnering with nonprofit housing developers):
• Apply for State and federal funding on behalf of a nonprofit, under a specific program to construct affordable housing including persons with physical disabilities or developmental disabilities.
• Provide financial incentive waiving City fees for 100 percent affordable housing projects.
• Provide a dedicated project planner for 100 percent affordable housing projects. 86 Agenda Item # 3.
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• Transfer the City’s annual CDBG allocation to the County for projects that serve the Los Altos community.
• Allocate a portion of CDBG funds toward affordable housing development. • Provide funding to participate in a multi-jurisdictional housing finance program (such as a Mortgage Revenue Bond or Mortgage Credit Certification Program).

The City will continue to coordinate with Santa Clara County and other agencies on multi-jurisdictional housing finance programs.
• Partner with nonprofit housing developers to facilitate the development of affordable housing.

The City will also promote incentives through outreach to developers, specifically by hosting a developers roundtable annually to inform developers of available incentives and encourage affordable housing development.

Responsible Body: Development Services Department, City Council Funding Source: State or federal grant funds, General Fund Time Frame: Ongoing; developers roundtable annually
Program 2.D: Encourage and streamline Accessory Dwelling Units (ADUs).

The City will continue to promote ADU production through streamlined review and clear informational resources, including handouts and other materials. To increase the number of ADU’s constructed, the City will:
• Prepare permit ready standard ADU plans with a variety of unit sizes, bedroom count, and architectural styles.
• Publicize and promote the standard ADU plans through multiple outreach methods and languages, targeting single-family households and neighborhoods. Outreach material will also include fair housing information (e.g., source of income protection).
• Remove any barriers in the review process of an ADU (a preliminary planning review was previously required; the City has eliminated this requirement and will continue to no longer require the preliminary planning review). • Ensure ministerial processing of all ADUs.
• Hire one additional planning staff position to review ministerial applications which includes ADUs.
• Promote the availability of funding for ADUs, including the CalHFA ADU Grant Program that currently provides up to $40,000 to reimburse homeowners for predevelopment costs necessary to build and occupy an ADU. • With completion of a comprehensive fee study (see Program 3.D), the City will adopt a zero cost ($)) permit fee for ADUs to incentivize the creation of ADUs. 87 Agenda Item # 3.
27 | City of Los Altos 2023-2031 Housing Element
• Amend the ADU ordinance to comply with State law, pending formal comment from HCD.
• Annually review ADU ordinance for compliance with State law, and process any necessary amendments within six months.

The City will also monitor ADU production and affordability throughout the planning period and implement additional action if target ADU numbers are not being met.

Responsible Body: Development Services Department
Funding Source: General Fund
Time Frame: Ongoing; if ADU targets are not being met by January 2027, the City will review and revise efforts to increase ADU construction (e.g., fee waivers, local financing program for ADUs, etc.) no later than July 2027. Outreach will occur annually, targeting single-family households and neighborhoods. The City’s action shall be commensurate with the level of shortfall from construction targets (i.e., if shortfall is significant, a rezoning action may be required, if shortfall is slight, additional incentives may be appropriate).

Additional planning staff position will be budgeted and hired by the end of 2022. The City will release an RFQ by July 2023 for permit ready standard ADU plans; by the end of year 2024 the City will have adopted standard ADU design plans. The City will adopt amendments to the ADU ordinance six months from receipt of HCD’s formal comment letter.

Objective: Adopt and provide City Standard Permit Ready ADU Plans (2024). 322 ADUs by the end of the planning period with at least 80 percent of ADUs located in the highest resource areas of the city.

Program 2.E: Conduct annual ADU rental income surveys.

The City will conduct annual ADU rental income surveys whereby each property owner may voluntarily share the rental income for the unit for the City to use in its annual progress reports consistent with Zoning Code Section 14.14.090. The City will provide additional staff support by the onboarding of a Housing Manager or look to consultant services to provide this support at the appropriate capacity needed.

Responsible Body: Development Services Department
Funding Source: General Fund; potential State or federal grants Time Frame: Annually, March 2023 to provide funding for in-house staff or consultant services
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Program 2.F: Water and Sewer Service Providers.

Pursuant to Chapter 727, Statues of 2004 (SB 1087), the City of Los Altos upon completion of an amended or adopted housing element, is responsible for immediately distributing a copy of the housing element to area water and sewer providers. The legislation allows for coordination between the City and water and sewer providers when considering approval of new residential projects. Water and sewer providers must grant priority for service allocations to proposed developments that include housing units affordable to lower-income households. Chapter 727 was enacted to improve the effectiveness of the law in facilitating housing development for lowerincome families and workers.

Responsible Body: Development Services Department, Public Works Department Funding Source: General Fund
Time Frame: December 2023
Goal 3: Remove constraints to the development of housing.

Policies
Policy 3.1: Promote Housing Through City Regulation.

Promote housing goals through City codes, ordinances, and policies that enable housing production.

Policy 3.2: Modify Zoning Code to Assist in Meeting Housing Needs.

Ensure that Zoning Code provisions assist in meeting the housing needs of residents, including those with special needs.

Policy 3.3: Expedite Entitlement Review.

Continue to expedite the processing and review time by the City to the maximum extent possible.

Policy 3.4: Ensure Adequate Staffing Levels.

Evaluate staffing levels and ensure an appropriate number of staff available.

Programs
Program 3.A: Prepare a Downtown parking plan and update citywide parking requirements.

To address all parking constraints, the City will analyze and update parking requirements citywide and implement a Downtown parking plan. This effort will include the following:
• Assess parking demand, requirements, and strategies in the Downtown and citywide.
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• Identify approaches to address short and long-term parking needs considering innovative parking design and strategies that support efficient use of land. • Reflect that the City will support consolidation of City-owned parking plazas. • Prepare a Downtown parking plan and modify parking requirements to reflect this plan, and reflect ensuring that overflow parking does not spill over into adjacent residential only districts.
• Revise parking standards citywide for commercial (mixed-use) and multi-family residential zones to implement a sliding scale based on unit size (number of bedrooms).
• Amend the City’s parking requirements based on the assessment’s findings. This may include reducing parking rates, including guest parking rates; offering further reduced rates for properties participating in a public parking district; establishing lower parking rates for small units (e.g., studios, single-room occupancy units, etc.) and senior housing, housing for persons with disabilities, deed-restricted affordable housing, etc.; providing more flexibility related to the underground parking requirement; offering other alternatives to comply with parking requirements; and modifying the required parking design dimensions (e.g., parking stall and lane dimensions).

Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund, Parking In-Lieu Fees, Public-Private Partnership Time Frame: December 2024
Program 3.B: Modify building height in mixed-use zoning districts.

Various mixed-use zoning districts limit development to 30 feet or no more than two stories. To facilitate housing development in mixed-use zoning districts, the City will amend the Zoning Code to increase allowed building heights as referenced in the Downtown Vision Plan height recommendation section, at minimum if not greater, than the following:
• First Street and San Antonio District
o Standalone Residential: 40 feet, 4-stories
o Mixed-Use: 45 feet, 4-stories
• Edith District
o Standalone Residential: 40 feet, 4-stories
• Main and State Street District
o Mixed-Use: 35 feet, 3-stories
The City will then evaluate and update allowed heights in the Commercial Neighborhood (CN) District at minimum allowing an additional 10 feet and one story to maintain first floor commercial 90 Agenda Item # 3.
2023-2031 Housing Element City of Los Altos | 30
uses and accommodate residential uses on upper floors to be provided as mixed-use development. This effort will include modifying existing objective design standards as necessary to accommodate anticipated housing capacity while addressing community design goals.

Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: Amendments to Zoning Code for increased building heights in downtown by December 2023; zoning code amendments to increase allowed heights in Commercial Neighborhood (CN) District by December 2024
Program 3.C: Remove floor-to-area ratio (FAR) restriction at Rancho Shopping Center and Woodland Plaza.

The City will remove the site-specific 0.35 floor-to-area ratio (FAR) limitation applicable to the Rancho Shopping Center and Woodland Plaza, as the FAR limit presents a constraint to housing and is more restrictive than the FAR standard in the Commercial Neighborhood (CN) District. The City will create new development standards reflective of a mixed-use zone that requires both commercial and residential uses for the Rancho Shopping Center and Woodland Plaza properties.

Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: December 2024
Objective: Remove site-specific 0.35 floor-to-area ratio (FAR), and create development standards that require both commercial and residential uses for the Rancho Shopping Center and Woodland Plaza properties to incorporate needed housing units and preserve essential shopping services.

Program 3.D: Evaluate and adjust impact fees.

The City will evaluate applying the park in-lieu and traffic impact fees on a per square foot basis rather than per unit to encourage the development of higher densities and smaller, more affordable housing units. Based on this evaluation, the City will modify impact fees in accordance with Assembly Bill 602 (AB 602) with completion of the comprehensive fee evaluation.

Responsible Body: Development Services Department, City Council Funding Source: General Fund
Time Frame: Initiate comprehensive fee evaluation August 2023; complete comprehensive fee evaluation and modify fees December 2024
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Program 3.E: Ensure that the density bonus ordinance remains consistent with State law.

Government Code Section 65915 requires that a jurisdiction adopt a local Density Bonus Ordinance consistent with State law. State Density Bonus law requires a local jurisdiction to grant an increase in density, if requested by a developer, for providing affordable housing as part of a development project. Key provisions of the law include incremental density bonuses that correspond to the percentage of housing set aside as affordable units. The law also provides reduced parking requirements and allows requests for waivers of development standards, such as increased height limits and reduced setback requirements.

The City will continue to annually monitor the effectiveness and appropriateness of existing adopted policies and update the ordinance as needed and will ensure that its local ordinance remains consistent with State law, but will apply current state law even before local amendments are adopted. The City will update its Appendix to the Affordable Housing Ordinance (Municipal Code Chapter 14.28, Article 2) to comply with State law. The City commits to continue to review and approve eligible requests under State Density Bonus law (including requests for incentives, concessions, waivers, and parking reductions) so that projects that qualify are not prevented from developing at the densities to which they are entitled.

Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: Amend Appendix to Affordable Housing Ordinance by December 2023.

Program 3.F: Reduce Conditional Use Permit requirement for residential mixed-use and multi-family.

To facilitate housing, the City will amend the Zoning Code to allow the following as permitted uses (and no longer requiring a conditional use permit):
• Residential mixed-use in the CN, CD, CRS, CT, and CRS/OAD districts; and • Multi-family in appropriate areas of mixed-use districts (e.g., not on the ground floor, etc.).

Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: September 2024
Objective: By allowing the residential use by-right the time for City review of and action on residential mixed-use and multi-family developments will be shortened compared to typical processing times of a conditional use permit (see Appendix C, Table C-8). 92 Agenda Item # 3.
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Program 3.G: Amend Conditional Use Permits findings applicable to housing developments.

Conditional Use Permit (CUP) approval is subject to findings listed in Zoning Code Section

14.80.060. CUP findings will be amended so that only objective findings and standards are applicable to housing developments, including single-room occupancy units, consistent with State law. Additionally, the City will designate the review and approval of conditional use permits for housing developments to the Authority of the Development Services Director.

Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: March 2024
Program 3.H: Amend design review process and requirements.

The City’s Design Review Commission and Planning Commission had previously been one commission with a Design Review Committee comprised of two assigned Planning Commissioners. In recent years the purview of land use and design review was split into two separate commissions, currently the Planning Commission and Design Review Commission. The current structure of the Design Review Commission is a five-person body appointed by the City Council, while the Planning Commission is a seven-person body. Recent changes in State law drastically reduced the Design Review Commission’s purview, and the City’s well-developed objective design standards for a variety of development types (adopted in 2021) effectively created an Administrative Design Review that has been well implemented by City staff. In order to remove constraints arising from design review, the City will:
• Consolidate the Design Review Commission and Planning Commission into one body comprised of a maximum of seven appointed residents which will review mixed-use, multifamily and commercial developments, consistent with the majority of jurisdictions throughout the County of Santa Clara;
• Eliminate 3rd party independent architect review (which applies to projects in the downtown);
• Amend its Zoning Code to allow any design review and discretionary approvals for a project of five or fewer units to be approved by the Development Services Director; • When hearings are required, limit the number of hearings for solely design review approval (i.e., not including subdivision maps or other applications that may be involved) to no more than three hearings;
• Develop standard conditions of approval to provide consistency and certainty to applicants and approving bodies;
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• Modify its design review process and applicability thresholds so that City Council serves only as the decision-making authority for appeal of design review and land use decisions, consistent with the majority of jurisdictions throughout the County of Santa Clara; • Clarify that decisions on appeals of housing developments must be based on objective standards consistent with State law and any appeal filed with the City shall be done within 14 calendar days post project approval; and
• Amend its Zoning Code to ensure that housing developments and emergency shelters are only subject to objective design standards consistent with State law.

Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: Any code amendments required to be completed by December 2023; Design Review Commission to be dismissed and duties reassigned to Development Services Director upon local adoption of the 6th Cycle Los Altos Housing Element or sooner. Evaluate progress and take additional action if improvements in the design review process have not resulted by January 2027.

Objective: The time for City review of and action on residential, mixed-use and multifamily developments will be shortened compared to typical processing times (see Appendix C, Table C-8) with the reduction of discretionary reviews and commissions.

Program 3.I: Allow residential care facilities consistent with State law.

To comply with State law, the City will amend the Zoning Code to permit residential care facilities for six or fewer persons in all residential zoning districts, as well as districts where single-family homes are allowed by-right and treat them as a residential use. The Zoning Code will also be amended to allow large residential care facilities (seven or more persons) in all residential zones without discretionary review (i.e., subject only to objective standards). Residential care facilities will not be limited to individuals of 60 years of age or over, and a barrier-free definition of “family” that encompasses unrelated individuals living together as a single residential unit will be added consistent with State law.

Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: March 2024
Program 3.J: Explicitly allow manufactured homes consistent with State law.

Government Code §65852.3 requires manufactured and mobile homes on a permanent foundation to be allowed in the same manner and in the same zone as a conventional stick-built structure. While it is the City’s practice to treat manufactured homes on a foundation as a 94 Agenda Item # 3.
2023-2031 Housing Element City of Los Altos | 34
conventional single-family home, the Zoning Code does not reflect this practice. The City will amend the Zoning Code to explicitly allow manufactured homes on a permanent foundation, subject to the same regulations as single-family homes and in the same zones as single-family homes.

Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: March 2024
Program 3.K: Standardize multimodal transportation requirements.

An application for City Council design review is subject to a multimodal transportation review by the Complete Streets Commission as part of the approval process in order to assess potential project impacts to various modes of transportation. The City will streamline the Development Review process for multi-family housing projects by adoption of Development Standards for multimodal transportation such as bicycle, pedestrian, parking traffic and public transportation issues. The development of standards will no longer require housing development projects to be reviewed by the Complete Streets Commission. The City Council will utilize previous recommendations and approvals as a basis for the creation of the development standards in consultation with the appointed Complete Streets Commission. A recommendation by the Complete Streets Commission on Bicycle Stall, Storage and Charging shall be made timely and considered at no more than two hearings; final recommendation to the City Council shall be made no later than May 2023.

Responsible Body: Development Services Department, Complete Streets Commission, City Council
Funding Source: General Fund
Time Frame: December 2023
Objective: See Program 3.H.

Program 3.L: Eliminate the requirement of story poles.

The requirement of story poles adds subjectivity, extends the review process of all development, and adds to the additional cost of a project. Existing submittal requirements include, renderings and 3D Modeling which effectively provide the same information story poles would (the relationship of the proposed building heights). The requirement of story poles installations will be eliminated for all development applications.

Responsible Body: Development Services Department, City Council Funding Source: General Fund
Time Frame: March 2023
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Program 3.M: Modify parking requirements for emergency shelters consistent with State law.

The City will amend its Zoning Ordinance to only require parking necessary for emergency shelter staff consistent with Government Code §65583(a)(4)(A).

Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: December 2024
Program 3.N: Modify standards in the R3 zoning districts.

The City will amend its Zoning Ordinance to allow building heights of 35 feet and three stories in all R3 zoning districts. The City will also increase allowed site coverage in the R3 zoning districts to ensure maximum densities can be achieved.

Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: December 2026
Goal 4: Create housing opportunities for people with special needs.

Policies
Policy 4.1: Support Local Homeless Service Providers.

The City will support the efforts of Santa Clara County and local social service providers to increase their capacity to operate facilities serving the homeless.

Policy 4.2: Allow Special Needs Housing Consistent with State Law.

The City will comply with all State legal requirements pertaining to zoning provisions for homeless shelters, transitional housing, and supportive housing, and single-room occupancy (SRO) housing.

Policy 4.3: Encourage Independent Living.

The City will promote services and education to help seniors maintain their independence and remain in their own homes as long as possible.
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Policy 4.4: Discourage Senior Housing Conversion.

The City will discourage senior-only housing from converting to other uses.

Policy 4.5: Transportation Options.

The City will encourage senior housing and housing for persons with disabilities near transportation and services.

Policy 4.6: Variety of Housing Types.

The City will encourage a variety of housing opportunities, including building type, degree of care, and form of ownership to support housing for all, including persons with disabilities.

Programs
Program 4.A: Support efforts to fund homeless services.

The City continues to transfer its CDBG funds to the County to support local housing programs, including programs to support people experiencing homelessness. In addition, the City will continue to pursue funding from available sources for homeless services and will also assist community groups that provide homeless services and assist such groups in applying for funding from other agencies. Moreover, the City will consider applying for grants where appropriate or will encourage/partner with local and regional nonprofit organizations that wish to apply for such grants. Lastly, the City will promote the availability of these services on its website, social media, by email, and with handouts.

Responsible Body: Development Services Department
Funding Source: CDBG funds (as transferred to the County and applied to the City program)
Time Frame: Ongoing
Program 4.B: Continue to participate in local and regional forums for homelessness, supportive, and transitional housing.

Continue to participate in regional efforts as coordinated with other adjacent cities to address homeless and emergency and transitional housing issues and potential solutions. In addition to transferring its CDBG funds to the County (see Program 4.A), the City provides funding for the Community Services Agency (CSA) of Mountain View and Los Altos that provides various housing services.

Responsible Body: Development Services Department, City Council, Community Services Agency
Funding Source: General Fund, CDBG funds (as transferred to the County and applied to the City program)
Time Frame: Ongoing
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Program 4.C: Allow Low Barrier Navigation Centers consistent with AB 101.

The Zoning Code does not address low barrier navigation centers (LBNCs), defined as Housing First, low-barrier, service enriched shelters focused on moving people into permanent housing that provide temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing (Government Code §65660). State law requires LBNCs to be permitted by-right in areas zoned for mixed-use and nonresidential zones permitting multifamily uses provided they satisfying the provisions established by AB 101 (see Government Code §65662). This would allow LBNCs in the CD/R3, CN, CD, CRS, CT, and CRS-OAD districts. The City will amend its Zoning Code to explicitly allow LBNCs as provided by State law.

Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: December 2023.

Program 4.D: Allow transitional and supportive housing consistent with State law.

Allow transitional and supportive housing by right in all zones which allow residential uses, subject only to those restrictions and standards that apply to other residential dwellings of the same type in the same zone, consistent with State law. Additionally, transitional and supportive housing that qualifies under AB 2162 will be allowed by right in zones where multi-family and mixed uses are allowed, including nonresidential zones that allow multi-family uses, consistent with AB 2162 (Government Code §65651)
Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: December 2023
Program 4.E: Allow employee/farmworker housing consistent with State law.

The City will amend the Zoning Code to allow employee housing consistent with Health and Safety Code §17021.5 and 17021.6.

Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: December 2023
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Program 4.F: Reasonably accommodate disabled persons’ housing needs.

Both the federal Fair Housing Act and the California Fair Employment and Housing Act direct local governments to make reasonable accommodations (i.e., modifications or exceptions) in their zoning laws and other land use regulations when such accommodations may be necessary to afford disabled persons an equal opportunity to use and enjoy a dwelling. The Zoning Code does not currently contain procedures for reasonable accommodations. The City will adopt reasonable accommodation procedures compliant with State and federal law.

Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: Adopt an ordinance by December 2023; report to City Council on number of reasonable accommodation requests submitted and the status of each (i.e., approved, denied (and reason for denial), or under review) (annually) Objective: The City will adopt a reasonable accommodation ordinance and process request as submitted with the target of approving at least three reasonable accommodation requests by January 31, 2031.

Program 4.G: Assist seniors to maintain and rehabilitate their homes.

Seek, maintain, and publicize a list of resources or service providers to help seniors maintain and/or rehabilitate their homes. Specifically, the City will update (as needed) and regularly promote the Age Friendly Design (design that promotes the mobility and welfare of aging population) Elements handout and require larger lower income developments to utilize Universal Design (allows for equitable use, flexibility in use, simple and intuitive use, etc.) standards.

Responsible Body: Development Services Department, Senior Commission Funding Source: General Fund
Time Frame: Update Age Friendly Design handout by July 2026; publicize list of service providers annually.

Program 4.H: Provide additional density bonuses and incentives for housing that accommodates special needs groups.

Provide density bonus increases and incentives beyond that required by State law for projects that provide senior housing or housing for extremely low-income households or people with disabilities, including developmental disabilities, in multi-family or mixed-use zones. Specifically, the City will codify the additional density bonus and incentives for senior-only projects.

Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
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Time Frame: December 2025
Program 4.I: Allow senior housing with extended care facilities in multi-family and mixeduse zoning districts.

The City will amend Zoning Code to clearly allow senior housing under the multi-family use and residential care facilities consistent with State law.

Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: December 2025
Program 4.J: Facilitate alternate modes of transportation for residents.

Continue to implement City standards, policies, and funding efforts, such as the Complete Streets Masterplan adopted in the summer of 2022 to facilitate walkable neighborhoods and the safe use of alternate modes of transportation such as bicycles. For example, the City will install above head pedestrian crossing signals over San Antonio near Main Street in Downtown Los Altos. The City may also fund community service organizations to offer rides, partner with organizations to provide bicycle share services, and/or develop policies to require sidewalks and/or bicycle lanes or bicycle parking improvements in areas of need. The City will also adopt a vehicle miles travel (VMT) policy and transportation demand management plan to promote efficient land use planning and facilitate alternative modes of transportation.

Responsible Body: Development Services Department, Public Works Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: June 2023 and ongoing
Objective: Adopt VMT policy and transportation demand management plan (by June 2023) and provide walkable and safe modes of transportation to all residents. Funding for above head pedestrian crossing signals will be completed no later than December 2027.

Goal 5: Conserve and improve the existing housing stock.

Policies
Policy 5.1: Conserve Existing Affordable Housing.

The City will encourage the conservation of existing affordable housing, including the present rental stock represented by units in the city’s existing multi-family districts, particularly rental housing affordable to low- or moderate-income households. 100
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Policy 5.2: Conserve Small Homes.

The City will continue to conserve the stock of small houses in areas of small lot sizes.

Policy 5.3: Preserve and Improve Existing Housing.

The City will encourage the preservation and improvement of the existing housing stock to minimum housing standards, including existing nonconforming housing uses.

Programs
Program 5.A: Monitor condominium conversions.

The City will continue to implement the Condominium Conversion Ordinance to protect against the conversion or demolition of rental units. This Ordinance does not allow apartment buildings to be converted into condominiums unless rental vacancy is greater than five percent.

Responsible Body: Development Services Department
Funding Source: General Fund
Time Frame: Ongoing
Objective: Deny condominium conversions unless compliant with the Ordinance.

Program 5.B: Continue to administer the City’s affordable housing programs.

The City will continue to work with Alta Housing or other qualified entity to administer the City’s affordable housing programs, including outreach and marketing. The contracted entity will continue to monitor below-market-rate units on behalf of the City. Any efforts beyond those under the existing Alta Housing contract (e.g., further preservation activities) would require additional City funding. The City shall provide funding for a full-time Housing Manager to help manage the affordable housing programs.

Responsible Body: Development Services Department, City Council Funding Source: General Fund
Time Frame: Ongoing
Objective: Maintain accurate records of the City’s affordable housing inventory and waitlists, and report annually to the City Council.

Program 5.C: Restrict commercial uses from displacing residential neighborhoods.

Continue to restrict commercial uses in residential neighborhoods so as to prevent potential future displacement of residents, while continuing to allow home occupations in residential zones, consistent with the Zoning Code.

Responsible Body: Development Services Department
Funding Source: General Fund
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Time Frame: Ongoing
Program 5.D: Implement voluntary code inspection program.

Continue the voluntary code inspection program encompassing code compliance, rehabilitation, energy conservation, and minimum fire safety standards. Use the code inspection programs to promote available rehabilitation programs and services (see Program 5.E).

Responsible Body: Development Services Department
Funding Source: General Fund
Time Frame: Ongoing
Program 5.E: Help secure funding for housing rehabilitation and assistance programs.

Continue to assist in the provision of housing programs and services for low-income households with other public agencies and private nonprofit organizations that offer home repairs, rental assistance, and first-time homebuyer assistance. To minimize overlap or duplication of services, Los Altos will undertake the following actions:
• The City will support County and nonprofit housing rehabilitation programs by providing program information to interested individuals through handouts available at City Hall, the Los Altos Senior Center, the Los Altos Library, and the Woodland Branch Library as well as by email, social media, and on the City website.
• The City will contact previous rehabilitation applicants when new funding becomes available and post a legal notice in the newspaper, as well as by email, social media, and on the City website, when housing rehabilitation funds become available. The City will continue to transfer their Community Development Block Grant (CDBG) funds to the County to support housing programs each year.

Responsible Body: Development Services Department
Funding Source: General Fund, CDBG funds
Time Frame: Promote available programs and funding sources annually (handouts, Los Altos Senior Center, Woodland Branch Library, email, social media, City website); ongoing Objective: Rehabilitation of six units for low-income households during the planning period
Program 5.F: Incentivize the creation of play areas for multi-family housing projects.

The City will develop incentives for the creation of play areas for muti-family housing projects to help address the needs of children and families. Incentives could be a reduction in Park In-Lieu Fees or waiving the entire fee completely in connection to the development of onsite improvements.
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Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: December 2027
Goal 6: Promote fair housing access and opportunities for all persons.

Policies
Policy 6.1: Promote Equal Opportunity.

Promote governmental efforts to provide equal opportunity housing for existing and projected demands in Los Altos, including the creation and management of waitlists for below-market-rate ownership and rental units.

Policy 6.2: Connect Residents with Fair Housing Services.

The City will make a proactive effort to increase awareness of fair housing services.

Policy 6.3: Promote Community Involvement in Housing Efforts.

Promote representative citizen participation in the implementation of housing programs.

Policy 6.4: Implement Anti-Displacement Measures.

Enforce the right of first refusal for residents displaced through redevelopment of existing housing stock as required by Government Code §66300(d)(2)(D)(ii).

Programs
Program 6.A: Assist residents with housing discrimination and landlord-tenant complaints.

The City presently refers discrimination complaints to the Santa Clara County Housing Authority as appropriate. If the county is not able to effectively resolve the identified fair housing issues or violations, and enforcement is necessary, tenants may be referred to the State Department of Fair Employment and Housing or HUD, depending on the complaint. In addition, the City will raise awareness of available services to address housing discrimination and landlord-tenant complaints through its website, printed handouts and in-person outreach conducted by the City’s new Housing Manager.

Responsible Body: Development Services Department
Funding Source: General Fund
Time Frame: Ongoing
Objective: The City will continue to promote fair housing practices, refer fair housing complaints appropriately, and raise awareness of such services. The City will advertise 103
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available services through the City’s newsletters, website, email blasts, social media, cable television channel as well as handouts at City Hall and other public buildings and facilities. The City will track awareness of fair housing services through surveys of the community and increase awareness of such services over the planning period, adjusting outreach methods based on survey results, but will ensure that outreach is conducted at least annually starting in May 2023. The City’s aim is to have 100 survey respondents in the first year, and to increase survey participation by five percent with each survey and show a five percent increase in awareness of available services by survey respondents with each survey.

Program 6.B: Maintain and expand an inventory of affordable housing funding sources.

The City will prepare a comprehensive inventory of available sources of funds for affordable housing activities. The City will update and maintain this inventory so it is available to prospective housing developers. City staff will identify and prepare applications for appropriate funding sources to support affordable housing activities. As discussed in Appendix G (Housing Resources) and in Program 2.C, these sources include CDBG, Section 8 Project-Based Rental Assistance, the Mills Act program, and various State programs such as Low-Income Housing Tax Credits (LIHTC) and the Multi-family Housing Program.

Responsible Body: Development Services Department
Funding Source: General Fund
Time Frame: Prepare inventory of funding sources by December 2023; inform developers of funding sources available (annually); evaluate notices of funding availability (annually); submit grant applications (at least one every three years) Objective: The City will update and maintain the inventory of affordable housing funding sources, make it available to developers, and apply for, when appropriate, funding sources to support affordable housing activities.

Program 6.C: Target housing development in highest resource areas.

The City will outreach to property owners of housing sites in the highest resource areas including areas of the city with higher TCAC Education and Environment scores. In this outreach, the City will provide written material to property owners of identified sites describing potential residential capacity for the site, available incentives, including density bonuses and available funding. The City will disseminate this information on its website.

Responsible Body: Development Services Department
Funding Source: General Fund
Time Frame: Initial outreach by September 2023; follow up outreach after completion of various zoning modifications by September 2026
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Objective: Support the development of below market rate housing (i.e., lower or moderate-income housing) in Los Altos; if the City has not received an application for a below market rate.
project by December 2026, the City will enhance efforts under programs that support funding or partnerships to achieve affordable housing production. The City aims to facilitate the approval of 50 low-income units in highest resource area(s) (also see Program 1.H).

Program 6.D: Promote Housing Choice (Section 8) rental assistance program.

The Housing Choice (Section 8) Rental Assistance Program is administered by the Santa Clara County Housing Authority (SCCHA) and has about 17,000 participants. This program assists very low-income, elderly, and disabled households by paying the difference between 30 percent of an eligible household's income and the actual rental cost. The City will continue to promote participation of eligible Los Altos residents in the County-administered Housing Choice Rental Assistance Program, focusing promotional efforts to reach more lower income households, such as areas near El Camino Real, although promotion will be through various channels to reach the broadest audience. The City’s promotional efforts will also target lower income areas countywide to encourage more lower-income households to relocate to Los Altos. SCCHA currently assists six households with Section 8 housing choice vouchers in Los Altos. The City’s new Housing Manager will lead the promotion of Housing Choice rental assistance program within Los Altos, providing education and assistance to tenants, property managers/owners.

Responsible Body: Development Services Department, Santa Clara County Housing Authority
Funding Source: General Fund
Time Frame: SCCHA Housing Choice Rental Assistance Program link on the City’s website by September 2023; promote the Program via newsletters, email blasts, social media, and other methods annually; track number of Section 8 participants annually and modify outreach efforts if target number of households is not achieved.

Objective: The City will advertise availability of the Housing Choice Rental Assistance Program on its website, newsletters, email blasts, social media, cable television channel as well as handouts at City Hall and other public buildings and facilities. Since Housing Choice vouchers are portable, the number of vouchers used in the city will vary over time, but the City’s objective is to increase the number of households participating in the Section 8 program from the current level of six to 12 households.

Program 6.E: Prepare and distribute anti-displacement information.

The City will create communications materials to effectively distribute information regarding local and regional tenants’ rights resources, as well as other relevant resources, in a user-friendly manner. The City will engage in a robust communications campaign to better inform residents, 105
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especially those who are harder to reach and potentially at-risk of displacement, of these new materials. Information will be multilingual, and the City will coordinate with organizations and local groups to ensure effective distribution of information community wide (e.g., Community Services Agency of Mountain View and Los Altos, school district, etc.). This will include targeting both people who live in Los Altos and work in Los Altos.

Responsible Body: Development Services Department
Funding Source: General Fund
Time Frame: Materials produced and translated into multiple languages and initial communication campaign by September 2023; continue to distribute materials on an annual basis
Objective: The City will produce anti-displacement materials and conduct outreach to notify potentially at-risk households of such resources. The City will hold at least one inperson event every two years (starting by December 2023) on fair housing rights and resources; this event will be hosted in a location where at-risk households are more easily reached and will be determined with local organizations and groups to be most effective.

The goal is to educate at least 12 households or prevent at least 12 households from displacement.

Program 6.F: Affirmatively market physically accessible units.

As a condition of the disposition of any City-owned land, the award of City financing, any density bonus concessions, or land use exceptions or waivers for any affordable housing project, the City will require that the housing developer implement an affirmative marketing plan for Statemandated physically accessible units which, among other measures, provides disability-serving organizations adequate prior notice of the availability of the accessible units and a process for supporting people with qualifying disabilities to apply.

Responsible Body: Development Services Department
Funding Source: General Fund
Time Frame: Ongoing as applications are processed
Objective: Affirmative marketing conducted for 100 percent of affordable housing units approved and permitted in Los Altos from 2023 to 2031.
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Goal 7: Encourage energy and resource conservation and sustainability measures.

Policies
Policy 7.1: Energy and Water Conservation.

The City will encourage energy and water conservation measures to reduce energy and water consumption in residential, governmental, and commercial buildings.

Policy 7.2: Energy and Water Efficiency.

The City will continue to implement building and zoning standards to encourage energy and water efficiency.

Policy 7.3: Greenhouse Gas Reduction.

The City will continue to implement the 2022 Climate Action and Adaptation Plan to encourage reducing greenhouse gas emissions.

Programs
Program 7.A: Promote energy and water conservation and greenhouse gas reduction through education and awareness campaigns.

Continue to promote residential energy and water conservation and greenhouse gas reduction consistent with the City’s adopted 2022 Climate Action and Adaptation Plan, through consumer information on financial assistance and rebates for energy-efficient home improvements published by governmental agencies, nonprofit organizations, and utility companies. This includes information on the Property Assessed Clean Energy (PACE) program that provides eligible property owner financing for energy improvements to their homes—solar panels, water-efficient landscapes, etc.—on their property tax assessment. Other programs include leveraging and promoting other State and commercial initiatives to encourage solar energy, such as grants, tax credits, and rebates, as they are implemented through organizations such as Silicon Valley Clean Energy, PG&E, BayRen, among others.

The City will make the above-described information available at the public counter of the Development Services Department, at the Los Altos Senior Center, Los Altos Library, and through the City’s newsletters. The information will also be available on the City’s website.

Responsible Body: Development Services Department
Funding Source: General Fund
Time Frame: Ongoing
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Program 7.B: Monitor and implement thresholds and statutory requirements of climate change legislation.

Monitor the implementation measures of the Global Warming Solutions Act of 2006 (AB 32) and SB 375, which requires planning organizations to promote sustainable communities as part of their regional transportation plans. The City will implement the measures as guidance for thresholds and compliance methods are released by the State, especially as reflected in its 2022 Climate Action and Adaptation Plan.

Responsible Body: Development Services Department
Funding Source: General Fund
Time Frame: Ongoing
IV.B Quantified Objectives
Table IV-2 presents the City’s quantified objectives for construction, preservation, and rehabilitation for the 2023 – 2031 planning period that will be achieved through the policies and programs described above.

Table IV-2: Quantified Objectives
Program Type/Affordability Extremely
Low1 Very Low Low Moderate Above Moderate Total
New Construction 250 251 288 326 843 1,958
Rehabilitation 2 2 2 - - 6
Conservation/Preservation 6 6 - - - 12
Total 255 256 290 326 843 1,970
1 The City estimates 50% of the very low households would qualify as extremely low income. 2 See Program 6.D. Assumes Section 8 Housing Choice Voucher recipients are split evenly between extremely low and very low income.
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Housing Needs Assessment City of Los Altos | A-1
Appendix A: Housing Needs Assessment
Contents
Appendix A: Housing Needs Assessment ................................................. 1 Section A.1 Introduction and Summary .................................................................................... 2 A.1.1 Introduction............................................................................................................ 2 A.1.2 Summary ............................................................................................................... 2 Section A.2 Population Characteristics..................................................................................... 4 A.2.1 Population ............................................................................................................. 4 A.2.2 Age ........................................................................................................................ 6 A.2.3 Race/Ethnicity ....................................................................................................... 7 A.2.4 Employment .......................................................................................................... 9 Section A.3 Household Characteristics...................................................................................16 A.3.1 Household Size ...................................................................................................16 A.3.2 Overcrowding ......................................................................................................16 A.3.3 Household Income ..............................................................................................21 A.3.4 Special Housing Needs .......................................................................................24 A.3.5 Displacement.......................................................................................................42 Section A.4 Housing Stock Characteristics.............................................................................44 A.4.1 Housing Type and Vacancy ................................................................................44 A.4.2 Housing Tenure...................................................................................................47 A.4.3 Housing Units Permitted......................................................................................50 A.4.4 Housing Age and Condition.................................................................................51 Section A.5 Housing Costs and Affordability ..........................................................................54 A.5.1 Ownership Costs ................................................................................................. 54 A.5.2 Rental Costs........................................................................................................56 A.5.3 Overpayment.......................................................................................................58 A.5.4 At-Risk Housing Assessment ..............................................................................67 109
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Section A.1 Introduction and Summary
A.1.1 Introduction
This Appendix forms the foundation for understanding Los Altos housing needs.

It analyzes a range of demographic, economic, and housing-related variables to determine the extent and context of the city’s housing-related need. Information gathered through this Appendix provides a basis from which to build housing goals, policies, and programs to address those needs.

This needs assessment includes an analysis of the city’s population, special needs groups, employment, housing stock, and housing affordability.

The main source of data used to form the majority of this section is HCD pre-certified local housing data provided by ABAG, which relies primarily on the American Community Survey 2015-2019, California Department of Finance, and HUD’s Comprehensive Housing Affordability Strategy (“CHAS”) data. 2020 Census data has been noted and referenced in certain instances; however, due to the timing and certification requirements of the Housing Element, 2020 Census data is not fully available, and therefore has not been comprehensively integrated into this assessment.

A.1.2 Summary
Housing needs are determined by a city’s population and its existing housing stock and provide context for developing housing policy, such as which types of housing and its affordability levels are most needed in the community. The following summarizes key data from this housing needs assessment.
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• Los Altos has a higher income population than Santa Clara County. Los Altos’ 2019 median household income ($235,278) was almost 90 percent higher than the county ($124,055). Almost 17 percent of Los Altos households are lower-income households (1,783 households), of which 7.2 percent are extremely low-income. • Los Altos has a high rate of home ownership. Of the total housing units, four out of five households (81 percent) own their homes.
• Home prices are higher in Los Altos than in the county. Households must earn at least median wage (100 percent AMI) to afford to rent in Los Altos, and well over 200 percent of AMI to be able to buy a home in the city. Low-income households are likely to be excluded from essentially all neighborhoods in Los Altos. • More than one in four homeowners (28 percent) and one in five renters (23 percent) are cost burdened. Furthermore, 12 percent of homeowners and 11 percent of renters are severely cost burdened. Los Altos has a lower proportion of cost-burdened households compared to the county.
• Renter households are slightly more likely to live in overcrowded conditions than owneroccupied households. 2.1 percent of renter households experience overcrowding or severe overcrowding, versus 0.4 percent of owner households. Los Altos has a lower overcrowding rate than the county.
• Los Altos has a lower proportion of residents of color than the Bay Area. Of all the racial/ethnic groups, Other or Multiple Races, American Indian or Alaska Native, and African American residents experience the highest rates of poverty in Los Altos. • Seniors (65 years and above) comprise more than 26 percent of the population in Los Altos. The median age in the city is 46 years, nearly 10 years higher than in the county (37 years). Of total senior households, almost 37 percent are cost burdened (1,299 households). Seniors are considered a special needs group, as they can face higher levels of housing insecurity because they are more likely to be on a fixed income while requiring higher levels of care.
• Los Altos’ other special housing needs population includes persons with a disability (5.7 percent of residents) that may require accessible housing and female-headed households (6.7 percent of households) who are often at greater risk of housing insecurity. • The number of people experiencing homelessness in Los Altos increased from six to 76 individuals between 2017 and 2019. This was sharp increase compared to the county, although this homeless population represents less than one percent of the homeless population countywide.
• Los Altos has 1,112 large households (five or more people), which are generally served by three-bedroom or larger units. The number of such units in Los Altos (8,646) can sufficiently accommodate the city’s share of larger families. 111
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• A variety of housing types is important to meet the needs of all members of the community.

Over 85 percent of Los Altos’ housing stock is single-family (attached and detached).

However, multi-family housing of five or more units has experiencing the most growth over the last decade.
• The largest proportion of Los Altos’ housing units was built between 1940 and 1959, with almost 23 percent built before 1960. This represents an aging housing stock which can reflect poorer living standards and higher repair costs if not regularly maintained.

Section A.2 Population Characteristics
A.2.1 Population
The Bay Area is the fifth-largest metropolitan area in the nation and has seen a steady increase in population since 1990, except for a decline during the Great Recession beginning in 2007.

Many cities in the region have experienced significant growth in both jobs and population. While these trends have led to a corresponding increase in demand for housing across the region, the regional production of housing has largely not kept pace with job and population growth. In 2020, the population of Los Altos was estimated to be 30,876 (see Table A-1). From 1990 to 2000, the population increased by 5.1 percent, while it increased by 3.6 percent during the first decade of the 2000s. In the most recent decade, the population increased by 6.6 percent (9.1 percent according to the 2020 Census). The population of Los Altos makes up 1.6 percent of Santa Clara County.1
Since 2000, the population in Los Altos has increased by 11.5 percent, which is below that of the region, at 16.6 percent increase over the same period (see Figure A-1). In Los Altos, roughly 10.2 percent of its population had moved during the past year, 3.2 percentage points smaller than the regional rate of 13.4 percent.
1 To compare the rate of growth across various geographic scales, Figure 1 shows population for the jurisdiction, county, and region indexed to the population in the year 1990. This means that the data points represent the population growth (i.e., percent change) in each of these geographies relative to their populations in 1990. 112
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Table A-1: Population Growth Trends
1990 1995 2000 2005 2010 2015 2020
Geography
Los Altos 26,599 26,993 27,693 27,513 28,976 30,346 30,876 1 Santa Clara County 1,497,577 1,594,818 1,682,585 1,752,969 1,781,642 1,912,180 1,961,969 Bay Area 6,020,147 6,381,961 6,784,348 7,073,912 7,150,739 7,595,694 7,790,537 Notes:
1 31,625 according to the 2020 Census.

Source: ABAG 2021 Pre-certified Housing Needs Data (California Department of Finance, E-5 series) Figure A-1: Population Growth Trends
Note: The data shown on the graph represents population for the jurisdiction, county, and region indexed to the population in the first year shown. The data points represent the relative population growth in each of these geographies relative to their populations in that year. For some jurisdictions, a break may appear at the end of each decade (1999, 2009) as estimates are compared to census counts. DOF uses the decennial census to benchmark subsequent population estimates.

Source: ABAG 2021 Pre-certified Housing Needs Data (California Department of Finance, E-5 series) 100
105
110
115
120
125
130
135
1990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017201820192020 Index (Year percents = Index 100)
Index
Los Altos
Index
Santa Clara County
Index
Bay Area
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A.2.2 Age
The distribution of age groups in a city influences the types of housing the community may need in the near future. An increase in the older population may mean there is a developing need for more senior housing options, while higher numbers of children and young families can point to the need for more family housing options and related services. Trends indicate an increased desire to age-in-place or downsize to stay within their communities, which can mean more multifamily and accessible units are also needed.

In Los Altos, the median age in 2000 was 43.1; by 2019, this figure had increased to around 46 years. The median age in the county was 37.4 for the same year. The population of seniors (65 years and above) increased just over 10.5 percent since 2000 and makes up 26.6 percent of the population. Statewide, the population of seniors comprises approximately 12 percent of total population. The population of youths (14 years and under) increased at a rate of 14.2 percent and makes up almost 21.0 percent of the total population. Conversely, the population of those ages 15-45 decreased by an estimated 4.3 percent between 2000 and 2019 and makes up 27.4 percent of the total population of Los Altos.

Figure A-2: Population by Age, 2000-2019
Notes:

Universe: Total population
Source: ABAG 2021 Pre-certified Housing Needs Data ((U.S. Census Bureau, Census 2000 SF1, Table P12; U.S.

Census Bureau, Census 2010 SF1, Table P12; U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B01001) 1.6k

3.9k

1.9k

2.0k

4.8k

4.7k

3.4k

2.5k

2.2k

0.7k

1.6k

4.7k

2.3k

1.4k

3.9k

5.4k

4.0k

2.7k

1.9k

1.1k

1.3k

5.1k

2.6k

2.0k

3.8k

5.3k

4.4k

3.0k

2.1k

1.0k
0 1,000
2,000
3,000
4,000
5,000
6,000
Age 0-4 Age 5-
14 Age 15-
24 Age 25-
34 Age 35-
44 Age 45-
54 Age 55-
64 Age 65-
74 Age 75-
84 Age 85+
Population
2000 2010 2019
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Looking at the senior and youth population by race can add an additional layer of understanding, as families and seniors of color are even more likely to experience challenges finding affordable housing. People of color (all non-white racial groups) make up 24.3 percent of seniors and 49.2 percent of youth under 18 (see Figure A-3).

Figure A-3: Senior and Youth Population by Race
Notes:

Universe: Total population
In the sources for this table, the Census Bureau does not disaggregate racial groups by Hispanic/Latinx ethnicity, and an overlapping category of Hispanic / non-Hispanic groups has not been shown to avoid double counting in the stacked bar chart.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B01001(A-G))
A.2.3 Race/Ethnicity
Understanding the racial makeup of a city and region is important for designing and implementing effective housing policies and programs. These patterns are shaped by both market factors and government actions, such as exclusionary zoning, discriminatory lending practices and displacement that has occurred over time and continues to impact communities of color today.

Los Altos has a higher share of residents identifying as White, Non-Hispanic than the county and region and a smaller share of residents identifying as American Indian or Alaskan Native, Black or African American, and Hispanic or Latinx when compared to the county and region. Los Altos also has a higher share of residents identifying as Asian/API than the rest of the Bay Area region, but a smaller share compared to Santa Clara County (see Figure A-4). 33% 34%
22%
16%
51%
62%
76%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Age 0-17 Age 18-64 Age 65+
Population
White (Hispanic and Non-Hispanic)
Other Race or Multiple Races (Hispanic and Non-Hispanic) Black or African American (Hispanic and Non-Hispanic)
Asian / API (Hispanic and Non-Hispanic)
American Indian or Alaska Native (Hispanic and Non-Hispanic) 115
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Figure A-4: Population by Race, 2019
Notes:

Data for 2019 represents 2015-2019 ACS estimates.

The Census Bureau defines Hispanic/Latinx ethnicity separate from racial categories. For the purposes of this graph, the “Hispanic or Latinx” racial/ethnic group represents those who identify as having Hispanic/Latinx ethnicity and may also be members of any racial group. All other racial categories on this graph represent those who identify with that racial category and do not identify with Hispanic/Latinx ethnicity.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, Census 2000, Table P004; U.S.

Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B03002) Since 2000, the number of residents in Los Altos identifying as Non-Hispanic White has decreased by 18.1 percent. By the same token, the population of Non-White residents more than doubled, growing at a rate of 139.1 percent between 2000 and 2019. As of 2019, White, NonHispanic residents represent a majority of the Los Altos’ total population at an estimated 58.1 percent of residents. The Asian/API, Non-Hispanic population increased the most (123.1 percent) while the White, Non-Hispanic population decreased the most. 31% 37%
27%
6%
58%
32% 39%
5%
4% 5%
4%
25% 24%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Los Altos Santa Clara County Bay Area
% of Population
Hispanic or Latinx
Other Race or Multiple Races, Non-Hispanic
White, Non-Hispanic
Black or African American, Non-Hispanic
Asian / API, Non-Hispanic
American Indian or Alaska Native, Non-Hispanic
116
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According to the 2020 ACS 5-Year Estimate, 56.0 percent of Los Altos’ population identified as Non-Hispanic White, 32.4 percent identified as Asian, 5.4 percent was an Other Race or Multiple Races, 5.5 percent was Hispanic or Latinx, and 0.7 percent was African American.

Figure A-5: Population by Race and Ethnicity, 2000-2019 Notes:

Data for 2019 represents 2015-2019 ACS estimates.

The Census Bureau defines Hispanic/Latinx ethnicity separate from racial categories. For the purposes of this graph, the “Hispanic or Latinx” racial/ethnic group represents those who identify as having Hispanic/Latinx ethnicity and may also be members of any racial group. All other racial categories on this graph represent those who identify with that racial category and do not identify with Hispanic/Latinx ethnicity.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, Census 2000, Table P004; U.S.

Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B03002) A.2.4 Employment
A city houses employed residents who either work in the community where they live or work elsewhere in the region. Conversely, a city may have job sites that employ residents from the same city, but more often employ workers commuting from outside of it. Smaller cities typically will have more employed residents than jobs there and export workers, while larger cities tend to have a surplus of jobs and import workers. To some extent the regional transportation system is set up for this flow of workers to the region’s core job centers. At the same time, as the housing affordability crisis has illustrated, local imbalances may be severe, where local jobs and worker populations are out of sync at a sub-regional scale.
16% 24% 31%
80% 68% 58%
5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2000 2010 2019
Share of Population
Hispanic or Latinx
Other Race or Multiple Races, Non-Hispanic
White, Non-Hispanic
Black or African American, Non-Hispanic
Asian / API, Non-Hispanic
American Indian or Alaska Native, Non-Hispanic
117
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One measure of this is the relationship between workers and jobs. A city with a surplus of workers (meaning more workers than jobs available) “exports” workers to other parts of the region, while a city with a surplus of jobs (meaning more jobs than can be filled with local workers) must conversely “import” them. There are 13,370 employed residents and 14,257 jobs in Los Altos2 –
the ratio of jobs to workers is 1.07; therefore, Los Altos can be considered a net importer of workers. In 2019, approximately six percent of people employed in Los Altos also lived in the city (LEHD on the Map, 2019).

Between 2002 and 2018, the number of jobs in Los Altos increased by 40.9 percent (see Figure A-6).
2 Employed residents in a jurisdiction is counted by place of residence (they may work elsewhere) while jobs in a jurisdiction are counted by place of work (they may live elsewhere). The jobs may differ from those reported in Figure A-6 as the source for the time series is from administrative data, while the cross-sectional data is from a survey.

Figure A-6: Jobs in Los Altos
Notes:

Universe: Jobs from unemployment insurance-covered employment (private, state and local government) plus United States Office of Personnel Management-sourced Federal employment
The data is tabulated by place of work, regardless of where a worker lives. The source data is provided at the census block level.

These are crosswalked to jurisdictions and summarized.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, Longitudinal Employer-Household Dynamics, Workplace Area Characteristics (WAC) files, 2002-2018) 6,500
7,500
8,500
9,500
10,500
11,500
12,500
118
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Figure A-7 shows the balance when comparing jobs to workers, broken down by different wage groups, offering additional insight into local dynamics. A community may offer employment for relatively low-income workers but have relatively few housing options for those workers - or conversely, it may house residents who are low wage workers but offer few employment opportunities for them. Such relationships may cast extra light on potentially unmet demand for housing in particular price categories. A relative surplus of jobs in relation to residents in a given wage category suggests the need to import those workers, while conversely, surpluses of workers in a wage group relative to jobs means the community will export those workers to other jurisdictions. Such flows are not inherently negative, though over time, sub-regional imbalances may appear.

Los Altos has more low-wage jobs than low-wage residents. At the other end of the wage spectrum, the city has more high-wage residents than high-wage jobs (where high-wage refers to jobs paying $75,000 or more) (see Figure A-7). 3 Therefore, Los Altos has fewer housing accommodations for its low-wage jobs and more options for its high-wage positions.

Figure A-7: Workers by Earnings, by Jurisdiction as Place of Work and Place of Residence Notes:

Universe: workers 16 years and over with earnings
Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, American Community Survey 5-Year Data 2015-2019, B08119, B08519)
3 The source table is top-coded at $75,000, precluding more fine grained analysis at the higher end of the wage spectrum.

0.6k

1.0k

1.2k1.2k

9.3k

1.4k

2.1k

3.4k

2.1k

5.2k
0 1,000
2,000
3,000
4,000
5,000
6,000
7,000
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9,000
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Less than $9,999 $10,000 to
$24,999
$25,000 to
$49,999
$50,000 to
$74,999
$75,000 or more
Worker Population
Place of Residence Place of Work
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Figure A-8 shows the balance of a jurisdiction’s resident workers to the jobs located there for different wage groups as a ratio instead - a value of 1.0 means that a city has the same number of jobs in a wage group as it has resident workers - in principle, a balance. Values above one indicates a jurisdiction will need to import workers for jobs in a given wage group. Los Altos has the greatest need to import workers for lower-wage jobs. At the regional scale, this ratio is 1.04 jobs for each worker, implying a modest import of workers from outside the region (see Figure A8).

Figure A-8: Jobs-Worker Ratios, by Wage Group
Notes:

Universe: Jobs in a jurisdiction from unemployment insurance-covered employment (private, state and local government) plus United States Office of Personnel Management-sourced Federal employment The ratio compares job counts by wage group from two tabulations of LEHD data: Counts by place of work relative to counts by place of residence. See text for details.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, Longitudinal Employer-Household Dynamics, Workplace Area Characteristics (WAC) files (Jobs); Residence Area Characteristics (RAC) files (Employed Residents), 2010-2018)
Such balances between jobs and workers may directly influence the housing demand in a community. New jobs may draw new residents, and when there is high demand for housing relative to supply, many workers may be unable to afford to live where they work, particularly where job growth has been in relatively lower wage jobs. This dynamic not only means many

0.30 0.50

0.70 0.90

1.10 1.30

1.50 1.70

1.90 2.10
20022003200420052006200720082009201020112012201320142015201620172018 Ratio
Wages Less Than $1,250/Mo Wages $1,250-$3,333/Mo
Wages More than $3,333/Mo
120
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workers will need to prepare for long commutes and time spent on the road, but in the aggregate, it contributes to traffic congestion and time lost for all road users.

If there are more jobs than employed residents, it means a city is relatively jobs-rich, typically also with a high jobs to household ratio (over 1.0). The jobs-household ratio in Los Altos has increased over time -- from 0.8 in 2002, to 1.06 jobs per household in 2018 (see Figure A-9). Los Altos’ ratio is lower than both Santa Clara County (1.71) and the region (1.47), suggesting the city has a lower ratio of jobs to housing units relative to the rest of the Bay Area. While the county and region are jobs rich, Los Altos houses only a slightly higher number of workers than it has jobs.

Figure A-9: Jobs-Household Ratio
Notes:

Universe: Jobs in a jurisdiction from unemployment insurance-covered employment (private, state and local government) plus United States Office of Personnel Management-sourced Federal employment; households in a jurisdiction The data is tabulated by place of work, regardless of where a worker lives. The source data is provided at the census block level.

These are crosswalked to jurisdictions and summarized. The ratio compares place of work wage and salary jobs with households, or occupied housing units. A similar measure is the ratio of jobs to housing units. However, this jobs-household ratio serves to compare the number of jobs in a jurisdiction to the number of housing units that are actually occupied. The difference between a jurisdiction’s jobs-housing ratio and jobs-household ratio will be most pronounced in jurisdictions with high vacancy rates, a high rate of units used for seasonal use, or a high rate of units used as short-term rentals.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, Longitudinal Employer-Household Dynamics, Workplace Area Characteristics (WAC) files (Jobs), 2002-2018; California Department of Finance, E-5 (Households))
In terms of sectoral composition, the largest industry in which Los Altos residents work is Financial & Professional Services, and the largest sector in which Santa Clara County residents work is Health & Educational Services (see Figure A-9). For the Bay Area as a whole, the Health & Educational Services industry employs the most workers. Financial & Professional Services

0.60 0.80

1.00 1.20

1.40 1.60

1.80 20022003200420052006200720082009201020112012201320142015201620172018 Ratio
Los Altos Santa Clara County Bay Area
121
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A-14 | City of Los Altos Housing Needs Assessment
includes occupations within fields such as computer and information systems, scientific research and development, software development, database administration, information security, data science, and others.4
Figure A-10: Resident Employment by Industry
Notes:

Universe: Civilian employed population age 16 years and over The data displayed shows the industries in which jurisdiction residents work, regardless of the location where those residents are employed (whether within the jurisdiction or not). Categories are derived from the following source tables: Agriculture & Natural Resources: C24030_003E, C24030_030E; Construction: C24030_006E, C24030_033E; Manufacturing, Wholesale & Transportation: C24030_007E, C24030_034E, C24030_008E, C24030_035E, C24030_010E, C24030_037E; Retail:

C24030_009E, C24030_036E; Information: C24030_013E, C24030_040E; Financial & Professional Services: C24030_014E, C24030_041E, C24030_017E, C24030_044E; Health & Educational Services: C24030_021E, C24030_024E, C24030_048E, C24030_051E; Other: C24030_027E, C24030_054E, C24030_028E, C24030_055E Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table C24030)
4 https://www.bls.gov/oes/current/naics2_52.htm#00-0000 5% 6%
40% 26% 26%
24%
27% 30%
10%
5% 4%
17%
21% 17%
4%
8% 9%
4% 6% 8%

0.0%

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30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%
100.0%
Los Altos Santa Clara County Bay Area
Share of Employed Residents
Agriculture & Natural Resources Construction
Financial & Professional Services Health & Educational Services Information Manufacturing, Wholesale & Transportation
Retail Other
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In Los Altos, the unemployment rate decreased between 2010 and 2021, from an average 7.2 percent in 2010 to 4.2 percent in January of 2021. Jurisdictions throughout the region experienced a sharp rise in unemployment in 2020 due to impacts related to the COVID-19 pandemic, though with a general improvement and recovery in the later months of 2020.

Figure A-11: Unemployment Rate
Notes:

Universe: Civilian employed population age 16 years and over Unemployment rates for the jurisdiction level is derived from larger-geography estimates. This method assumes that the rates of change in employment and unemployment are exactly the same in each sub-county area as at the county level. If this assumption is not true for a specific sub-county area, then the estimates for that area may not be representative of the current economic conditions. Since this assumption is untested, caution should be employed when using these data. Only not seasonally- adjusted labor force (unemployment rates) data are developed for cities and CDPs.

Source: ABAG 2021 Pre-certified Housing Needs Data (California Employment Development Department, Local Area Unemployment Statistics (LAUS), Sub-county areas monthly updates, 2010-2021) 0%
5%
10%
15%
20%
25%
30%
35%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Percent of Labor Force that is Unemployed
Los Altos Santa Clara County Bay Area
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Section A.3 Household Characteristics
A.3.1 Household Size
In Los Altos, the largest share of households (35.5 percent) consists of a household with two people, while the lowest share of households (10.4 percent) consists of five-or-more persons (renters and owners combined). Three-person households make up 17 percent of the occupied housing stock in Los Altos, and four-person households make up 20.7 percent (see Table A-2).

According to the California Department of Finance, Los Altos had an average household size of

2.75 in 2020. Average household size in Santa Clara County was larger at 2.98 persons per household. Almost 38 percent of households in Los Altos are three to four-person households, slightly higher than the county (36.6 percent three to four-person households) and the region (32.6 percent three to four-person households).

Table A-2: Household Size
Household
Size
Owner
Occupied
% Owner
Occupied
Renter
Occupied
% Renter
Occupied
% of All
Occupied
Units
1-person
household 1,173 14% 572 28% 16%
2-person
household 3,182 37% 604 30% 36%
3-person
household 1,540 18% 267 13% 17%
4-person
household 1,796 21% 406 20% 21%
5-or-more
person
household
938 11% 174 9% 10%
Total occupied
housing units 8,629 100% 2,023 100% 100%
Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25009)
A.3.2 Overcrowding
Overcrowding occurs when the number of people living in a household is greater than the home was designed to hold. There are several different standards for defining overcrowding, but this report uses the Census Bureau definition, which is more than one occupant per room (not including bathrooms or kitchens). Additionally, the Census Bureau considers units with more than

1.5 occupants per room to be severely overcrowded.

Overcrowding is often related to the cost of housing and can occur when demand in a city or region is high. In many cities, overcrowding is seen more amongst those that are renting, with multiple households sharing a unit to make it possible to stay in their communities. Overall, 2.1 124
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Housing Needs Assessment City of Los Altos | A-17
percent of renter households experience either overcrowding or severe overcrowding, while only

0.4 percent of owner households do. In Los Altos, 0.6 percent of households that rent are severely overcrowded (more than 1.5 occupants per room) (12 households), compared to 0.0 percent of households that own (see Figure A-12). Furthermore, 1.5 percent of renter households experience moderate overcrowding (1 to 1.5 occupants per room) (30 households), compared to

0.4 percent for those own (35 households).

Figure A-12: Overcrowding by Tenure and Severity
Notes:

Universe: Occupied housing units
The Census Bureau defines an overcrowded unit as one occupied by 1.01 persons or more per room (excluding bathrooms and kitchens), and units with more than 1.5 persons per room are considered severely overcrowded.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2013-2017 release) Overall, Los Altos has a lower rate of overcrowding than the rest of the region. 0.8 percent of Los Altos residents face overcrowded conditions compared to 8.2 percent in Santa Clara County and

6.9 percent in the Bay Area. Specifically, Los Altos has 68 households experiencing overcrowded conditions and 13 households experiencing severe overcrowding.

0.4%

1.5%

0.6%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

1.6%
Owner Occupied Renter Occupied
Percent of Households

1.0 to 1.5 Occupants per Room More than 1.5 Occupants per Room 125
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Figure A-13: Overcrowding Severity
Notes:

The Census Bureau defines an overcrowded unit as one occupied by 1.01 persons or more per room (excluding bathrooms and kitchens), and units with more than 1.5 persons per room are considered severely overcrowded.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2013-2017 release) Overcrowding often disproportionately impacts low-income households. In Los Altos, 1.3 percent of extremely low-income households (0-30 percent of AMI) experience overcrowding (10 households) (see Figure A-14).
99%
92% 93%
5% 4%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%
100.0%
Los Altos Santa Clara County Bay Area
% of Households

1.00 occupants per room or less 1.01 to 1.50 occupants per room

1.50 occupants per room or more
126
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Figure A-14: Overcrowding by Income Level and Severity
Notes:

Universe: Occupied housing units
The Census Bureau defines an overcrowded unit as one occupied by 1.01 persons or more per room (excluding bathrooms and kitchens), and units with more than 1.5 persons per room are considered severely overcrowded. Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Santa Clara and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area (Solano County).

The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2013-2017 release) Communities of color are more likely to experience overcrowding and more likely to experience poverty, financial instability, and housing insecurity. People of color tend to experience overcrowding at higher rates than White residents. In Los Altos, the racial group with the largest overcrowding rate is Other Race or Multiple Races (Hispanic and Non-Hispanic) at 4.3 percent (14 households) (see Figure A-15). Asian/API (Hispanic and Non-Hispanic) reported overcrowding at 1.4% (44 households), while Hispanic or Latinx reported 2.4% (8 households).

Minimal rates of overcrowding (0.3 percent) were reported for White residents (42 households).

1.3%

0.5%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%
0%-30% of AMI 31%-50% of AMI 51%-80% of AMI 81%-100% of AMI Greater than 100% of AMI
Percent of Households

1.0 to 1.5 Occupants per Room More than 1.5 Occupants per Room 127
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Figure A-15: Overcrowding by Race
Notes:

Universe: Occupied housing units
The Census Bureau defines an overcrowded unit as one occupied by 1.01 persons or more per room (excluding bathrooms and kitchens), and units with more than 1.5 persons per room are considered severely overcrowded. For this table, the Census Bureau does not disaggregate racial groups by Hispanic/Latinx ethnicity. However, data for the white racial group is also reported for white householders who are not Hispanic/Latinx. Since residents who identify as white and Hispanic/Latinx may have very different experiences within the housing market and the economy from those who identify as white and non- Hispanic/Latinx, data for multiple white sub-groups are reported here.

The racial/ethnic groups reported in this table are not all mutually exclusive. Therefore, the data should not be summed as the sum exceeds the total number of occupied housing units for this jurisdiction. However, all groups labelled “Hispanic and Non-Hispanic” are mutually exclusive, and the sum of the data for these groups is equivalent to the total number of occupied housing units.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25014)

1.4%

2.4%

4.3%

0.3% 0.3%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%
More than 1.0 Occupants per Room
% of Households
American Indian or Alaska Native (Hispanic and Non-Hispanic) Asian / API (Hispanic and Non-Hispanic)
Black or African American (Hispanic and Non-Hispanic)
Hispanic or Latinx
Other Race or Multiple Races (Hispanic and Non-Hispanic) White (Hispanic and Non-Hispanic)
White, Non-Hispanic
128
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A.3.3 Household Income
Household income is a critical component of housing affordability. Income impacts the decision to rent versus own, the size of unit, and location of housing. Overall, household income in Los Altos is higher than that of Santa Clara County. Los Altos’ median household income in 2019 was $235,278, which is almost 90 percent higher than the county’s median income of $124,055.

Similarly, the mean income in Los Altos ($326,456) is twice the mean income in Santa Clara County ($164,962).

Table A-3: Household Income, City of Los Altos
Los Altos Santa Clara
County
Median Income $235,278 $124,055
Mean Income $326,456 $164,962
Source: ACS 5-year estimates (2019), S1901
The RHNA includes specific income categories defined by their respective proportion of the county area median income (AMI). Table A-4 defines these income categories.

Table A-4: Income Categories as a percentage of AMI
% of AMI
Acutely Low 1 0-15%
Extremely Low 15-30%
Very Low 30-50%
Low 50-80%
Moderate 80-120%
Above Moderate >120%
Notes:
1 New income category effective January 1,2022.

Source: Department of Housing and Community Development, 2021 Table A-5 shows the 2021 income limits for these income categories in Santa Clara County. The above moderate category includes all households earning above the upper limit of the moderateincome category. 129
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Table A-5: Santa Clara County 2021 Annual Income Limits by Household Size Number of Persons
in Household:
1 2 3 4 5 6 7 8
Santa
Clara
County
Area
Median
Income:
$151,300
Acutely
Low 15,900 18,510 20,450 22,700 24,500 26,350 28,150 29,950 Extremely
Low 34,800 39,800 44,750 49,700 53,700 57,700 61,650 65,650 Very Low
Income 58,000 66,300 74,600 82,850 89,500 96,150 102,750 109,400 Low
Income 82,450 94,200 106,000 117,750 127,200 136,600 146,050 155,450 Median
Income 105,900 121,050 136,150 151,300 163,400 175,500 187,600 199,700 Moderate
Income 127,100 145,250 163,400 181,550 196,050 210,600 225,100 239,650 Source: Department of Housing and Community Development, 2021 Despite the economic and job growth experienced throughout the region since 1990, the income gap has continued to widen. California is one of the most economically unequal states in the nation, and the Bay Area has the highest income inequality between high- and low-income households in the state.

Los Altos has a higher concentration of high-income households than in the county or region. In Los Altos, 77.5 percent of households make more than 100 percent of AMI, compared to 7.2 percent (764 households) making less than 30 percent of AMI, which is considered extremely low-income (see Figure A-16). Regionally, more than half of all households make more than 100 percent of AMI, while 15 percent make less than 30 percent of AMI. Of Los Altos’ total households,

5.4 percent are low income (earning between 50 and 80 percent of AMI), while around 11.3 of households in the county and 13.0 percent of households in the Bay Area are low income. In total, 1,783 households in Los Altos earn less than 80 percent of AMI (16.9 percent of households).

Many households with multiple wage earners – including food service workers, full-time students, teachers, farmworkers and healthcare professionals – can fall into lower AMI categories due to relatively stagnant wages in many industries.
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Figure A-16: Households by Household Income Level
Notes:

Universe: Occupied housing units
Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Santa Clara and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and VallejoFairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located. The data that is reported for the Bay Area is not based on a regional AMI but instead refers to the regional total of households in an income group relative to the AMI for the county where that household is located. Local jurisdictions are required to provide an estimate for their projected extremely low-income households (0-30percent AMI) in their Housing Elements. HCD’s official Housing Element guidance notes that jurisdictions can use their RHNA for very low-income households (those making 0- 50percent AMI) to calculate their projected extremely low-income households. As Bay Area jurisdictions have not yet received their final RHNA numbers, this document does not contain the required data point of projected extremely low-income households. The report portion of the housing data needs packet contains more specific guidance for how local staff can calculate an estimate for projected extremely low-income households once jurisdictions receive their 6th cycle RHNA numbers.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2013-2017 release) Throughout the region, there are disparities between the incomes of homeowners and renters.

Typically, the number of low-income renters greatly outpaces the amount of housing available that is affordable for these households.

In Los Altos, the largest proportion of both renters and owners falls in the Greater than 100 percent of AMI income group (see Figure A-17). There are no income groups with more renter than owners meaning Los Altos has a higher number of homeowners than renters. Renter households are most concentrated in the extremely low-income category with 31.3 percent of households earning no more than 30 percent of AMI renting their home (239 households). 7%
4% 14% 15%
11% 11%
5%
11% 13%
6%
9% 9%
77%
55% 52%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%
100.0%
Los Altos Santa Clara County Bay Area
Percent of Households
0%-30% of AMI 31%-50% of AMI 51%-80% of AMI
81%-100% of AMI Greater than 100% of AMI
131
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Figure A-17: Household Income Level by Tenure
Notes:

Universe: Occupied housing units
Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Santa Clara and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and VallejoFairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2013-2017 release) A.3.4 Special Housing Needs
Large Families
Large households (five or more persons) often have different housing needs than smaller households. If a city’s housing stock does not include units with enough bedrooms, large households could end up living in overcrowded conditions and/or overpaying for housing. Of all households in Los Altos, 10.4 percent or 1,112 households, are considered large households. 525 374 490 445 6,950 239 7085155 1,240 0 1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
0%-30% of AMI 31%-50% of AMI 51%-80% of AMI 81%-100% of AMI Greater than 100% of AMI
Households
Owner Occupied Renter Occupied
132
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Housing Needs Assessment City of Los Altos | A-25
A majority (84.4 percent) of large households in Los Altos live in owner occupied housing (see Figure A-18). Only 2.5 percent of large households are extremely or very low-income, earning less than 50 percent of (10 extremely low-income and 14 very low-income households).

Figure A-18: Household Size by Tenure
Notes:

Universe: Occupied housing units
Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25009)
The unit sizes available in a community affect the household sizes that can access that community.

Large families are generally served by housing units with three or more bedrooms, of which there are 8,646 units in Los Altos, or 81.2 percent of all units in Los Altos. Among these larger units with three or more bedrooms, 9.3 percent are renter-occupied, and 90.7 percent are owneroccupied (see Figure A-19). Because 10.4 percent of all households in Los Altos, or 1,112 households, are considered large households, the housing mix in Los Altos is considered adequate to accommodate larger household sizes. 1,173 3,182 1,540 1,796
938
572
604
267
406
174
0 500
1,000
1,500
2,000
2,500
3,000
3,500
1 Person
Household
2 Person
Household
3 Person
Household
4 Person
Household
5 Or More
Person
Household
Households
Owner Occupied Renter Occupied
133
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Figure A-19: Housing Units by Number of Bedrooms
Notes:

Universe: Housing units
Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25042)
Senior Households
Senior households often experience a combination of factors that can make accessing or keeping affordable housing a challenge. They often live on fixed incomes and are more likely to have disabilities, chronic health conditions, and/or reduced mobility. There are 409 extremely lowincome senior households in Los Altos (making no more than 30 percent of AMI). However, a majority of senior households, both renters and owners, earn more than 100 percent of AMI (see Figure A-20).

Seniors who rent may be at even greater risk for housing challenges than those who own, due to income differences between these groups. While most senior households own their home in Los Altos, a higher proportion own in higher income groups. 93.2 percent of senior households that earn greater than 100 percent of AMI own their home, while 84.1 percent of senior households that earn no more than 30 percent of AMI own their home. In total, 320 senior households rent their home. 20.3 percent of senior households that rent are extremely low-income (65 extremely low-income senior households that rent). Only 11 percent of senior households that own their 1194 685 6,355 1,484 152383681 784 23 0 1,000
2,000
3,000
4,000
5,000
6,000
7,000
0 Bedrooms 1 Bedrooms 2 Bedrooms 3-4 Bedrooms 5 Or More Bedrooms
Owner Occupied Renter Occupied
134
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Housing Needs Assessment City of Los Altos | A-27
home is extremely low-income (344 extremely low-income senior households that own their home).

Figure A-20: Senior Households by Income and Tenure
Notes:

Universe: Senior households
For the purposes of this graph, senior households are those with a householder who is aged 62 or older. Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Santa Clara and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose- SunnyvaleSanta Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2013-2017 release) In general, extremely low- and very low-income seniors (both renters and owners) are more likely to be cost burdened compared to higher earning seniors. In Los Altos, 36.7 percent of all senior households are housing cost burdened (see Section A.5.3, Overpayment, for a discussion of housing cost burden of seniors).

Female-headed Households
Households headed by one person are often at greater risk of housing insecurity, particularly female-headed households, who may be supporting children or a family with only one income. In Los Altos, the largest proportion of households is Married-couple Family Households at 72.9 percent, while Female-Headed Households make up 6.7 percent of all households (711 femaleheaded households).

344 295 330 255
1,995
65 40 45 25
145
0 500
1,000
1,500
2,000
0%-30% of
AMI
31%-50% of
AMI
51%-80% of
AMI
81%-100% of
AMI
Greater than
100% of AMI
Households
Income Group
Owner Occupied Renter Occupied
135
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Figure A-21: Household Type
Notes:

For data from the Census Bureau, a “family household” is a household where two or more people are related by birth, marriage, or adoption. “Non-family households” are households of one person living alone, as well as households where none of the people are related to each other.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B11001)
Female-headed households with children may face particular housing challenges, with pervasive gender inequality resulting in lower wages for women. Moreover, the added need for childcare can make finding a home that is affordable more challenging.

Of the 711 female-headed households in Los Altos, 41.6 percent have children. 12.5 percent of these households fall below the Federal Poverty Line (37 female-headed households with children in poverty), while only 2.4 percent of female-headed households without children live in poverty (10 households). Therefore, female-headed households with children are more likely to live in poverty than those without children.
7% 10% 10%
5% 5%
73% 57% 51%
8%
9%
16% 20% 25%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%
100.0%
Los Altos Santa Clara County Bay Area
% of Households
Female-Headed Family Households Male-headed Family Households Married-couple Family Households Other Non-Family Households Single-person Households
136
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Figure A-22: Female-Headed Households by Poverty Status Notes:

The Census Bureau uses a federally defined poverty threshold that remains constant throughout the country and does not correspond to Area Median Income.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B17012)
Persons with Disabilities
People with disabilities face additional housing challenges. Encompassing a broad group of individuals living with a variety of physical, cognitive and sensory impairments, many people with disabilities live on fixed incomes and are in need of specialized care, yet often rely on family members for assistance due to the high cost of care.

When it comes to housing, people with disabilities are not only in need of affordable housing but accessibly designed housing, which offers greater mobility and opportunity for independence.

Unfortunately, the need typically outweighs what is available, particularly in a housing market with such high demand. People with disabilities are at a high risk for housing insecurity, homelessness and institutionalization, particularly when they lose aging caregivers. Figure A-23 shows the rates at which different disabilities are present among Los Altos residents. Overall, 1,739 residents or

5.7 percent of people in Los Altos have a disability of any kind. 259
405
37 10
0 50
100
150
200
250
300
350
400
450
with Children with No Children
Households
Above Poverty Level Below Poverty Level
137
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Figure A-23: Disability by Type
Notes:

Universe: Civilian noninstitutionalized population 18 years and over These disabilities are counted separately and are not mutually exclusive, as an individual may report more than one disability. These counts should not be summed. The Census Bureau provides the following definitions for these disability types: Hearing difficulty: deaf or has serious difficulty hearing. Vision difficulty: blind or has serious difficulty seeing even with glasses. Cognitive difficulty: has serious difficulty concentrating, remembering, or making decisions. Ambulatory difficulty: has serious difficulty walking or climbing stairs. Self-care difficulty: has difficulty dressing or bathing. Independent living difficulty: has difficulty doing errands alone such as visiting a doctor’s office or shopping.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B18102, Table B18103, Table B18104, Table B18105, Table B18106, Table B18107) State law also requires Housing Elements to examine the housing needs of people with developmental disabilities. Developmental disabilities are defined as severe, chronic, and attributed to a mental or physical impairment that begins before a person turns 18 years old. This can include Down Syndrome, autism, epilepsy, cerebral palsy, and intellectual disability. Some people with developmental disabilities are unable to work, rely on Supplemental Security Income, and live with family members. In addition to their specific housing needs, they are at increased risk of housing insecurity after an aging parent or family member is no longer able to care for them.

In 2020, 95 people in Los Altos had a development disability. While this number has remained relatively stable, the San Andreas Regional Center identified a population of 109 people with

3.2%

2.4%

2.0%

1.6%

1.0% 0.8%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%
With an
ambulatory
difficulty
With a hearing
difficulty
With an
independent
living difficulty
With a cognitive
difficulty
With a self-care
difficulty
With a vision
difficulty
Proportion of Adult Population Reporting Disability
Type
138
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developmental disabilities in Los Altos in 2021.
5 Of the population with a developmental disability,
children under the age of 18 make up 47.4 percent, while adults account for 52.6 percent (see Table A-6).

Table A-6: Population with Developmental Disabilities by Age (2020) Age Group Number of People with a Developmental Disability Age Under 18 45
Age 18+ 50
Notes:

The California Department of Developmental Services is responsible for overseeing the coordination and delivery of services to more than 330,000 Californians with developmental disabilities including cerebral palsy, intellectual disability, Down syndrome, autism, epilepsy, and related conditions. The California Department of Developmental Services provides ZIP code level counts. To get jurisdiction-level estimates, ZIP code counts were crosswalked to jurisdictions using census block population counts from Census 2010 SF1 to determine the share of a ZIP code to assign to a given jurisdiction.

Source: ABAG 2021 Pre-certified Housing Needs Data (California Department of Developmental Services, Consumer Count by California ZIP Code and Residence Type (2020)) The most common living arrangement for individuals with developmental disabilities in Los Altos is the home of parent/family/guardian (see Table A-7).

Table A-7: Population with Developmental Disabilities by Residence (2020) Residence Type Number of People with a Developmental Disability Home of Parent/Family/Guardian 93
Independent/Supported Living 4
Community Care Facility 4
Other 0
Foster/Family Home 0
Intermediate Care Facility 0
Notes:

The California Department of Developmental Services is responsible for overseeing the coordination and delivery of services to more than 330,000 Californians with developmental disabilities including cerebral palsy, intellectual disability, Down syndrome, autism, epilepsy, and related conditions. The California Department of Developmental Services provides ZIP code level counts. To get jurisdiction-level estimates, ZIP code counts were crosswalked to jurisdictions using census block population counts from Census 2010 SF1 to determine the share of a ZIP code to assign to a given jurisdiction.

Source: ABAG 2021 Pre-certified Housing Needs Data (California Department of Developmental Services, Consumer Count by California ZIP Code and Residence Type (2020)) 5 2015 Housing Element, Table B-20, identifies 96 people with developmental disabilities in Los Altos in 2014. 2021 data from San Andreas Regional Center provided by Kalisha Webster, Housing Choices (March 15, 2022 correspondence).
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In 2021, 95 percent of Los Altos’ adults with developmental disabilities lived in the home of parents or other guardians (“family home”), compared to 65 percent of the adults with developmental disabilities in all of Santa Clara County. Los Altos offers no type of licensed care facilities for adults with developmental disabilities in contrast with all of Santa Clara County where 23 percent of the adult population lives in this type of setting. Due to the lack of deeply affordable housing in Los Altos, only five percent of Los Altos adults with developmental disabilities have been able to transition into independent living with coordinated supportive services provided by the San Andreas Regional Center as compared to all of Santa Clara County where 11 percent of adults with developmental disabilities have made this transition (see Table A-8).

Table A-8: Living Arrangements of Adults with Developmental Disabilities (2021) Adult Living Arrangement
Number of People with a Developmental Disability
Los Altos Santa Clara County
# % # %
Home of Parent/Family/Guardian (Family Home) 62 95% 4,362 65% Own Apartment with Supportive Services 3 5% 756 11%
Licensed Facilities 0 0% 1,525 23%
Other (Including Homeless) 0 0% 94 1%
Total Adults 65 100% 6,737 100%
Source: San Andreas Regional Center (2021); California Department of Developmental Services (2021); Kalisha Webster, Housing Choices (2022)
Additional data and trends demonstrate housing needs for people with developmental disabilities in Los Altos:
• Growth in the Santa Clara County adult population with developmental disabilities correlates with the documented annual increase in the diagnosis of autism that began in the mid-1980s and did not level out until after 2015. The cumulative impact of this trend is already seen in the growth of the Santa Clara County population age 18 to 41 with developmental disabilities.
• Longer life spans will result in more adults with developmental disabilities outliving their parents and family members who currently house almost all of Los Altos adults with developmental disabilities.
• Between September 2015 and June 2021, five percent fewer people with developmental disabilities were able to be housed in licensed care facilities (including community care facilities, intermediate care facilities, and skilled nursing facilities) in Santa Clara County. • Most Los Altos adults with developmental disabilities who want to live independently may need to move elsewhere due to the lack of deeply affordable housing in Los Altos. 140
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• People with developmental disabilities are more likely than the general population to have an accompanying physical disability. Almost 20 percent of Santa Clara County residents with developmental disabilities have limited mobility, and 15 percent have a vison or hearing impairment. The need for an accessible unit coupled with the need for coordinated supportive services compounds the housing barriers faced by those with both cognitive and physical disabilities.
6 Residents Living Below the Poverty Level
The Federal Poverty Level is an estimate of the minimum annual income a household would need to pay for essentials, such as food, housing, clothes, and transportation. This level considers the number of people in a household, their income, and the state in which they live. In Los Altos, 2.8 percent of the total population (856 residents) experience poverty, which is lower than the rate of Santa Clara County residents (7.5 percent).

Table A-9: Poverty Status
Los Altos Santa Clara County
% of Population Below Poverty Level 2.8% 7.5%
Source: ACS 5-year estimates (2019), S1701
As mentioned previously, female-headed households with children experience poverty at a disproportionate rate than those without children or the overall population.

Currently, people of color are more likely to experience poverty and financial instability as a result of federal and local housing policies that have historically excluded them from the same opportunities extended to white residents. These economic disparities also leave communities of color at higher risk for housing insecurity, displacement, or homelessness. In Los Altos, Other Race or Multiple Races (Hispanic and Non-Hispanic) residents experience the highest rates of poverty (6.8 percent), followed closely by American Indian or Alaska Native (Hispanic and NonHispanic) residents (6.5 percent) (see Figure A-24). 6 Kalisha Webster, Housing Choices (March 15, 2022 correspondence). 141
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Figure A-24: Poverty Status by Race
Notes:

Universe: Population for whom poverty status is determined The Census Bureau uses a federally defined poverty threshold that remains constant throughout the country and does not correspond to Area Median Income. For this table, the Census Bureau does not disaggregate racial groups by Hispanic/Latinx ethnicity. However, data for the white racial group is also reported for white householders who are not Hispanic/Latinx. Since residents who identify as white and Hispanic/Latinx may have very different experiences within the housing market and the economy from those who identify as white and non-Hispanic/Latinx, data for multiple white sub-groups are reported here. The racial/ethnic groups reported in this table are not all mutually exclusive. Therefore, the data should not be summed as the sum exceeds the population for whom poverty status is determined for this jurisdiction. However, all groups labelled “Hispanic and Non-Hispanic” are mutually exclusive, and the sum of the data for these groups is equivalent to the population for whom poverty status is determined.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B17001(A-I))
Farmworkers
Across the state, housing for farmworkers has been recognized as an important and unique concern. Farmworkers generally receive wages that are considerably lower than other jobs and may have temporary housing needs. Finding decent and affordable housing can be challenging, particularly in the current housing market.

In Los Altos, there were no reported students of migrant workers from the 2016-2017 to 2019- 2020 school year. The trend for the region has been a decline of 14.1 percent in the number of migrant worker students since the 2016-2017 school year. The change at the county level is a

49.7 percent decrease in the number of migrant worker students since the 2016-2017 school year (see Table A-10).

6.8%

6.5%

5.4%

2.6% 2.6% 2.4% 2.2%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%
Other Race or
Multiple
Races
(Hispanic and
Non-Hispanic)
American
Indian or
Alaska Native
(Hispanic and
Non-Hispanic)
Black or
African
American
(Hispanic and
Non-Hispanic)
White
(Hispanic and
Non-Hispanic)
White, NonHispanicAsian / API
(Hispanic and
Non-Hispanic)
Hispanic or
Latinx
Percent of Households in Racial / Ethnic
Group
142
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Table A-10: Migrant Worker Student Population
Academic Year Los Altos Santa Clara County Bay Area
2016-17 0 978 4,630
2017-18 0 732 4,607
2018-19 0 645 4,075
2019-20 0 492 3,976
Notes:

Universe: Total number of unduplicated primary and short-term enrollments within the academic year (July 1 to June 30), public schools
The data used for this table was obtained at the school site level, matched to a file containing school locations, geocoded and assigned to jurisdiction, and finally summarized by geography.

Source: ABAG 2021 Pre-certified Housing Needs Data (California Department of Education, California Longitudinal Pupil Achievement Data System (CALPADS), Cumulative Enrollment Data (Academic Years 2016-2017, 2017- 2018, 2018-2019, 2019-2020))
According to the U.S. Department of Agriculture Census of Farmworkers, the number of permanent farm workers in Santa Clara County has increased since 2002, totaling 2,418 in 2017, while the number of seasonal farm workers has decreased, totaling 1,757 in 2017 (see Figure A25).

Figure A-25: Farm Operations and Farm Labor by County, Santa Clara County Notes:

Universe: Hired farm workers (including direct hires and agricultural service workers who are often hired through labor contractors) Farm workers are considered seasonal if they work on a farm less than 150 days in a year, while farm workers who work on a farm more than 150 days are considered to be permanent workers for that farm.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Department of Agriculture, Census of Farmworkers (2002, 2007, 2012, 2017), Table 7: Hired Farm Labor)
1,696
3,760
2,842 2,747
2,243
1,994
2,418
1,757
0 500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Permanent Seasonal
Farm Workers
2002 2007 2012 2017
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Over the past two decades, there has been a shift to a more permanent workforce for many farms, which has shifted the bulk of the housing need from seasonal housing for migrant workers to permanently affordable housing for low wage working families. While both types of housing are needed, farmworker housing is no longer solely a rural issue. Farmworker populations have declined while at the same time trends for farmworkers have resulted in longer commutes (up to 75 miles per the USDA) for this population. Local jurisdictions with an agriculture-based economy are responsible for addressing the needs of farmworkers and their families through affirmatively furthering fair housing (AFFH) analysis.

As a result, there is not an explicit need for housing for farmworkers and their families (as opposed to housing for other low wage households), as Los Altos does not have an “agriculture-based economy”. However, other housing types promoted in the Housing Element, such as housing for low-income households and multi-family housing, can also serve farmworkers.

People Experiencing Homelessness
Homelessness remains an urgent challenge in many communities across the state, reflecting a range of social, economic, and psychological factors. Rising housing costs result in increased risks of community members experiencing homelessness. Far too many residents who have found themselves housing insecure have ended up unhoused or homeless in recent years, either temporarily or longer term. Unhoused individuals and families living arrangement may vary and could include living on the streets or outdoors (e.g., in parks or encampment areas), sleeping in vehicles, staying in a homeless shelter or transitional housing, staying in a hotel or motel, or sharing housing of other people (e.g., living in doubled-up arrangements or couch-surfing).

Addressing the specific housing needs for the unhoused population remains a priority throughout the region, particularly since homelessness is disproportionately experienced by people of color, people with disabilities, those struggling with addiction and those dealing with traumatic life circumstances.

The Point-in-Time (PIT) Count is an annual census and survey to identify the sheltered and unsheltered homeless population. According to the 2019 PIT Count, of the 9,706 reported homeless persons in Santa Clara County, the majority of persons experiencing homelessness are households without children in their care, and an overwhelming majority of those (7,413 or 87 percent) are unsheltered. Of those homeless persons that are under 18 years old or with children (1,197), 688 or 57.0 percent are sheltered in an emergency shelter or transitional housing (see Table A-11). The 2022 PIT showed a 10,028 homeless population in Santa Clara County, 144
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representing a three percent increase, but with a decline in the number of individuals living outdoors (unsheltered) and an increase in sheltered individuals. 7 Table A-11: Homelessness by Household Type and Shelter Status, Santa Clara County Type
People in
Households
Composed Solely
of Children Under
18 People in
Households with
Adults and
Children
People in
Households
without Children
Under 18
Total
Sheltered – Emergency
Shelter 7 377 696 1,080
Sheltered –
Transitional Housing 3 301 400 704
Unsheltered 266 243 7,413 7,922
Totals 276 921 8,509 9,706
Note: This data is based on Point-in-Time (PIT) information provided to HUD by CoCs in the application for CoC Homeless Assistance Programs. The PIT Count provides a count of sheltered and unsheltered homeless persons on a single night during the last 10 days in January.

Each Bay Area county is its own CoC, and so the data for this table is provided at the county-level.

Per HCD's requirements, jurisdictions will need to supplement this county-level data with local estimates of people experiencing homelessness.

Source: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports (2019)
Between 2017 and 2019, Los Altos saw its homeless population increase over tenfold, from six to 76 people. This is higher than the rate of increase in the county, 31 percent, during the same period (7,394 to 9,706 people experiencing homelessness). Los Altos’ homeless population is less than one percent of the county’s homeless population.

As noted above, people of color are more likely to experience poverty and financial instability as a result of federal and local housing policies that have historically excluded them from the same opportunities extended to white residents. Consequently, people of color are often disproportionately impacted by homelessness, particularly Black residents of the Bay Area. In Santa Clara County, White (Hispanic and Non-Hispanic) residents represent the largest proportion of residents experiencing homelessness and account for 43.9 percent of the homeless population, while making up 44.5 percent of the overall population (see Figure A-26). Latinx residents represent 42.7 percent of the population experiencing homelessness, while Latinx residents comprise only 25.8 percent of the general population (see Figure A-27). While White residents represent the largest proportion of residents experiencing homelessness, making up just under 44 percent of the homeless population, Black or African American and American Indian 7 https://news.sccgov.org/news-release/county-santa-clara-and-city-san-jose-release-preliminary-results-2022-pointtime 145
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or Alaska Native residents are overrepresented – accounting for 18.8 and 8.1 percent of the homeless population while only making up 2.5 and 0.5 percent of the overall population of Santa Clara County respectively.

Figure A-26: Racial Group Share of General and Homeless Populations, Santa Clara County Notes:

Universe: Population experiencing homelessness
This data is based on Point-in-Time (PIT) information provided to HUD by CoCs in the application for CoC Homeless Assistance Programs. The PIT Count provides a count of sheltered and unsheltered homeless persons on a single night during the last ten days in January. Each Bay Area county is its own CoC, and so the data for this table is provided at the county-level. Per HCD’s requirements, jurisdictions will need to supplement this county-level data with local estimates of people experiencing homelessness. HUD does not disaggregate racial demographic data by Hispanic/Latinx ethnicity for people experiencing homelessness. Instead, HUD reports data on Hispanic/Latinx ethnicity for people experiencing homelessness in a separate table.

Accordingly, the racial group data listed here includes both Hispanic/Latinx and non-Hispanic/Latinx individuals.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports (2019); U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B01001(A-I)) 8.1% 5.0% 18.8%

43.9%

24.3%

0.5%

36.8%

2.5%

44.5%

15.7%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
American Indian
or Alaska Native
(Hispanic and
Non-Hispanic)
Asian / API
(Hispanic and
Non-Hispanic)
Black or African
American
(Hispanic and
Non-Hispanic)
White (Hispanic
and NonHispanic)
Other Race or
Multiple Races
(Hispanic and
Non-Hispanic)
Percent of Population
Share of Homeless Population Share of Overall Population 146
Agenda Item # 3.

Housing Needs Assessment City of Los Altos | A-39
Figure A-27: Latino Share of General and Homeless Populations, Santa Clara County Notes:

Universe: Population experiencing homelessness
This data is based on Point-in-Time (PIT) information provided to HUD by CoCs in the application for CoC Homeless Assistance Programs. The PIT Count provides a count of sheltered and unsheltered homeless persons on a single night during the last ten days in January. Each Bay Area county is its own CoC, and so the data for this table is provided at the county-level. Per HCD’s requirements, jurisdictions will need to supplement this county-level data with local estimates of people experiencing homelessness. The data from HUD on Hispanic/Latinx ethnicity for individuals experiencing homelessness does not specify racial group identity. Accordingly, individuals in either ethnic group identity category (Hispanic/Latinx or non-Hispanic/Latinx) could be of any racial background.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports (2019); U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B01001(A-I)) Many of those experiencing homelessness are dealing with severe issues – including mental illness, substance abuse and domestic violence – that are potentially life threatening and require additional assistance. In Santa Clara County, homeless individuals are commonly challenged by severe mental illness, with 2,659 reporting this condition. Of those, 87.6 percent are unsheltered, further adding to the challenge of handling the issue (see Figure A-28).

42.7%

57.3%

25.8%

74.2%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%
Hispanic/Latinx Non-Hispanic/Latinx
Percent of Population
Share of Homeless Population Share of Overall Population 147
Agenda Item # 3.

A-40 | City of Los Altos Housing Needs Assessment
Figure A-28: Characteristics for the Population Experiencing Homelessness, Santa Clara County Notes:

Universe: Population experiencing homelessness
This data is based on Point-in-Time (PIT) information provided to HUD by CoCs in the application for CoC Homeless Assistance Programs. The PIT Count provides a count of sheltered and unsheltered homeless persons on a single night during the last ten days in January. Each Bay Area county is its own CoC, and so the data for this table is provided at the county-level. Per HCD’s requirements, jurisdictions will need to supplement this county-level data with local estimates of people experiencing homelessness. These challenges/characteristics are counted separately and are not mutually exclusive, as an individual may report more than one challenge/characteristic. These counts should not be summed.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports (2019)) In Los Altos, the student population experiencing homelessness totaled 29 during the 2019-2020 school year and decreased by 31.0 percent since the 2016-2017 school year. By comparison, Santa Clara County had a 3.5 percent increase in the population of students experiencing homelessness since the 2016-2017 school year, while the Bay Area population of students experiencing homelessness decreased by 8.5 percent. During the 2019-2020 school year, there were still 13,718 students experiencing homelessness throughout the region, adding undue burdens on learning and thriving, with the potential for longer term negative effects.

The number of students in Los Altos experiencing homelessness in 2019 represents 1.3 percent of the Santa Clara County total and 0.2 percent of the Bay Area total. 128 153
1,668
5 11 65 201 130
2,328
79 129
445
52 20
383
0 500
1,000
1,500
2,000
2,500
Sheltered - Emergency Shelter Sheltered - Transitional
Housing
Unsheltered
Chronic Substance Abuse HIV/AIDS Severely Mentally Ill
Veterans Victims of Domestic Violence
148
Agenda Item # 3.

Housing Needs Assessment City of Los Altos | A-41
Table A-12: Students in Local Public Schools Experiencing Homelessness Academic Year Los Altos Santa Clara County Bay Area
2016-17 42 2,219 14,990
2017-18 45 2,189 15,142
2018-19 42 2,405 15,427
2019-20 29 2,297 13,718
Notes:

Universe: Total number of unduplicated primary and short-term enrollments within the academic year (July 1 to June 30), public schools
The California Department of Education considers students to be homeless if they are unsheltered, living in temporary shelters for people experiencing homelessness, living in hotels/motels, or temporarily doubled up and sharing the housing of other persons due to the loss of housing or economic hardship. The data used for this table was obtained at the school site level, matched to a file containing school locations, geocoded and assigned to jurisdiction, and finally summarized by geography.

Source: ABAG 2021 Pre-certified Housing Needs Data (California Department of Education, California Longitudinal Pupil Achievement Data System (CALPADS), Cumulative Enrollment Data (Academic Years 2016-2017, 2017-2018, 2018-2019, 2019-2020))
Emergency Shelters/Transitional Housing
At this time, there are currently no emergency shelters or shelters for domestic violence victims located in Los Altos. The Governmental Constraints section in Appendix C describes how the City permits emergency shelters.

Resources for People Experiencing Homelessness
The Santa Clara County Continuum of Care (CoC) is a broad group of stakeholders dedicated to ending and preventing homelessness in Santa Clara County. The key responsibilities of the CoC are ensuring community-wide implementation of efforts to end homelessness and programmatic and systemic effectiveness.

The Santa Clara County’s supportive housing system provides services related to emergency shelters, transitional and permanent housing, rapid rehousing, supportive services, homeless prevention rental assistance, and special initiatives including employment pathways and youth programs.

Non-English Speakers
California has long been an immigration gateway to the United States, which means that many languages are spoken throughout the Bay Area. Since learning a new language is universally challenging, it is not uncommon for residents who have immigrated to the United States to have limited English proficiency. This limit can lead to additional disparities if there is a disruption in housing, such as an eviction, because residents might not be aware of their rights, or they might be wary to engage due to immigration status concerns.

In Los Altos, 2.0 percent of residents five years and older identify as speaking English not well or not at all, which is below the proportion for Santa Clara County. Throughout the region the proportion of residents five years and older with limited English proficiency is 7.8 percent. In Los 149
Agenda Item # 3.

A-42 | City of Los Altos Housing Needs Assessment
Altos, this includes a variety of non-English speakers such as Chinese (Mandarin, Cantonese, etc.), Korean, Spanish, and others.
8 Figure A-29: Population with Limited English Proficiency Notes:

Universe: Population 5 years and over
Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B16005)
A.3.5 Displacement
Because of increasing housing prices, displacement is a major concern in the Bay Area.

Displacement has the most severe impacts on low- and moderate-income residents. When individuals or families are forced to leave their homes and communities, they also lose their support network.

The University of California, Berkeley has mapped all neighborhoods in the Bay Area, identifying their risk for gentrification. In Los Altos, it was found that there are no households that live in 8 U.S. Census, American Community Survey 5-Year Data (2015-2019), Table C16001. 9% 8%
98%
91% 92%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%
100.0%
Los Altos Santa Clara County Bay Area
% of Population aged 5 and over
Population 5 Years and Over Who Speak English "Well" or "Very well" Population 5 Years and Over Who Speak English "Not well" or "Not at all" 150
Agenda Item # 3.

Housing Needs Assessment City of Los Altos | A-43
neighborhoods that are susceptible to or experiencing displacement and at risk of or undergoing gentrification.

Equally important, some neighborhoods in the Bay Area do not have housing appropriate for a broad section of the workforce. UC Berkeley estimates that 99.9 percent of households in Los Altos live in neighborhoods where low-income households are likely to be excluded due to prohibitive housing costs. Programs are included to facilitate housing for low-income households in Los Altos.

Figure A-30: Households by Displacement Risk and Tenure Notes:

Universe: Households
Displacement data is available at the census tract level. Staff aggregated tracts up to jurisdiction level using census 2010 population weights, assigning a tract to jurisdiction in proportion to block level population weights. Total household count may differ slightly from counts in other tables sourced from jurisdiction level sources. Categories are combined as follows for simplicity: At risk of or Experiencing Exclusion: At Risk of Becoming Exclusive; Becoming Exclusive; Stable/Advanced Exclusive At risk of or Experiencing Gentrification: At Risk of Gentrification; Early/Ongoing Gentrification; Advanced Gentrification Stable Moderate/Mixed Income: Stable Moderate/Mixed Income Susceptible to or Experiencing Displacement: Low- Income/Susceptible to Displacement; Ongoing Displacement Other: High Student Population; Unavailable or Unreliable Data.

Source: ABAG 2021 Pre-certified Housing Needs Data (Urban Displacement Project for classification, American Community Survey 5-Year Data (2015-2019), Table B25003 for tenure) 4 8,698
2 1,858
0 1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Susceptible to or
Experiencing
Displacement
At risk of or
Experiencing
Gentrification
Stable
Moderate/Mixed
Income
At risk of or
Experiencing
Exclusion
Other
Households
Owner Occupied Renter Occupied
151
Agenda Item # 3.

A-44 | City of Los Altos Housing Needs Assessment
Section A.4 Housing Stock Characteristics
A.4.1 Housing Type and Vacancy
In recent years, most housing produced in the region and across the state consisted of singlefamily homes and larger multi-unit buildings. However, some households are increasingly interested in “missing middle housing” – including duplexes, triplexes, townhomes, cottage clusters and accessory dwelling units (ADUs). These housing types may open up more options across incomes and tenure, from young households seeking homeownership options to seniors looking to downsize and age-in-place.

Los Altos’ housing stock in 2020 was made up of 81.0 percent single family detached homes, 4.8 percent single family attached homes, 2.2 percent multi-family homes with two to four units, 12.1 percent multi-family homes with five or more units, and no mobile homes. In Los Altos, the housing type that experienced the most growth between 2010 and 2020 was Multi-family Housing: Fiveplus Units (see Figure A-31). Total housing unit growth between 2010 and 2020 was 4.2 percent in Los Altos, compared to 6.7 percent in Santa Clara County.

Figure A-31: Housing Type Trends
Source: ABAG 2021 Pre-certified Housing Needs Data (California Department of Finance, E-5 series) 558 9,372 2191,055 561 9,453 253 1,410 0 1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Single-Family
Home: Attached
Single-Family
Home: Detached
Multifamily
Housing: Two to
Four Units
Multifamily
Housing: Five-plus
Units
Mobile Homes
Units
2010 2020
152
Agenda Item # 3.

Housing Needs Assessment City of Los Altos | A-45
Vacant units make up 3.7 percent of the overall housing stock in Los Altos. According to the 2020 Census, vacant housing units were 5.3 percent of the overall housing stock. The rental vacancy stands at 3.1 percent, while the ownership vacancy rate is 1.0 percent. Of the vacant units, the most common type of vacancy is Other Vacant (see Figure A-32).9

Throughout the Bay Area, vacancies make up 2.6 percent of the total housing units, with homes listed for rent; units used for recreational or occasional use, and units not otherwise classified (other vacant) making up the majority of vacancies. The Census Bureau classifies a unit as vacant if no one is occupying it when census interviewers are conducting the American Community Survey or Decennial Census. Vacant units classified as “for recreational or occasional use” are those that are held for short-term periods of use throughout the year. Accordingly, vacation rentals and short-term rentals like AirBnB are likely to fall in this category. 10 The Census Bureau classifies
units as “other vacant” if they are vacant due to foreclosure, personal/family reasons, legal proceedings, repairs/renovations, abandonment, preparation for being rented or sold, or vacant for an extended absence for reasons such as a work assignment, military duty, or incarceration.

In a region with a thriving economy and housing market like the Bay Area, units being renovated/repaired and prepared for rental or sale are likely to represent a large portion of the “other vacant” category. Additionally, the need for seismic retrofitting in older housing stock could also influence the proportion of “other vacant” units in some jurisdictions. The largest share of vacancies in Los Altos is due to “other vacant” reasons, similar to that of Santa Clara County and the Bay Area.
9 The vacancy rates by tenure is for a smaller universe than the total vacancy rate first reported, which in principle includes the full stock (3.7 percent). The vacancy by tenure counts are rates relative to the rental stock (occupied and vacant) and ownership stock (occupied and vacant) - but exclude a significant number of vacancy categories, including the numerically significant “other vacant”.
10 The City does not permit short-term rentals of fewer than 30 days anywhere in the city. 153
Agenda Item # 3.

A-46 | City of Los Altos Housing Needs Assessment
Figure A-32: Vacant Units by Type
Notes:

Universe: Vacant housing units
Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25004)
13%
35%
24% 4%
5%
6% 11%
11%
22%
52%
32% 36%
17% 11% 6%
5% 7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Los Altos Santa Clara County Bay Area
% of Vacant Housing Units
Sold, Not Occupied
Rented, Not Occupied
Other Vacant
For Seasonal, Recreational, Or Occasional Use
For Sale
For Rent
154
Agenda Item # 3.

Housing Needs Assessment City of Los Altos | A-47
A.4.2 Housing Tenure
The number of residents who own their homes compared to those who rent their homes can help identify the level of housing insecurity – ability for individuals to stay in their homes – in a city and region. Generally, renters may be displaced more quickly if prices increase. In Los Altos there are a total of 10,652 housing units, and fewer residents rent than own their homes: 19 percent versus 81 percent (see Figure A-33). By comparison, 44 percent of householders in Santa Clara County and the Bay Area rent their homes. Therefore, Los Altos has a higher share of owner-occupied households than the county or region.

Figure A-33: Housing Tenure
Notes:

Universe: Occupied housing units
Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25003)
In many cities, homeownership rates for households in single-family homes are substantially higher than the rates for households in multi-family housing. In Los Altos, 91 percent of households in detached single-family homes are homeowners, while 24 percent of households in multi-family housing are homeowners (see Figure A-34). Therefore, most households in multifamily units in Los Altos are renters. 81%
56% 56%
19%
44% 44%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Los Altos Santa Clara County Bay Area
Percent of Households
Owner Occupied Renter Occupied
155
Agenda Item # 3.

A-48 | City of Los Altos Housing Needs Assessment
Figure A-34: Housing Tenure by Housing Type
Notes:

Universe: Occupied housing units
Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25032)
Homeownership rates often vary considerably across race/ethnicity in the Bay Area and throughout the country. These disparities not only reflect differences in income and wealth but also stem from federal, state, and local policies that limited access to homeownership for communities of color while facilitating homebuying for white residents. While many of these policies, such as redlining, have been formally disbanded, the impacts of race-based policy are still evident across Bay Area communities. In Los Altos, 22.5 percent of Black or African American households owned their homes, while homeownership rates were 84.1 percent for Asian/API households, 55.4 percent for Hispanic or Latinx households, and over 80 percent for White households. Notably, recent changes to State law require local jurisdictions to examine these dynamics and other fair housing issues when updating their Housing Elements. Overall, the two groups with the lowest rates of home ownership are American Indian or Alaskan Native and Black or African American households.
91%
66%
24%
100%
9%
34%
76%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Detached SingleFamily HomesAttached SingleFamily HomesMulti-Family Housing
Mobile Homes Boat, RV, Van, or
Other
Percent of Households
Owner Occupied Renter Occupied
156
Agenda Item # 3.

Housing Needs Assessment City of Los Altos | A-49
Figure A-35: Housing Tenure by Race of Householder
Notes:

Universe: Occupied housing units
For this table, the Census Bureau does not disaggregate racial groups by Hispanic/Latinx ethnicity. However, data for the white racial group is also reported for white householders who are not Hispanic/Latinx. Since residents who identify as white and Hispanic/Latinx may have very different experiences within the housing market and the economy from those who identify as white and non-Hispanic/Latinx, data for multiple white sub-groups are reported here. The racial/ethnic groups reported in this table are not all mutually exclusive. Therefore, the data should not be summed as the sum exceeds the total number of occupied housing units for this jurisdiction. However, all groups labelled “Hispanic and Non-Hispanic” are mutually exclusive, and the sum of the data for these groups is equivalent to the total number of occupied housing units.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25003(A-I))
The age of residents who rent or own their home can also signal the housing challenges a community is experiencing. Younger households tend to rent and may struggle to buy a first home in the Bay Area due to high housing costs. At the same time, senior homeowners seeking to downsize may have limited options in an expensive housing market. In Los Altos, 45.4 percent of householders between the ages of 25 and 44 are renters, while 10.6 percent of householders over 65 are renters (see Figure A-36).

84.1%

22.5%

55.4% 65.5%

80.8% 81.8%
100.0%

15.9%

77.5%

44.6%

34.5%

19.2% 18.2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
American
Indian or
Alaska Native
(Hispanic and
Non-Hispanic)
Asian / API
(Hispanic and
Non-Hispanic)
Black or
African
American
(Hispanic and
Non-Hispanic)
Hispanic or
Latinx
Other Race or
Multiple Races
(Hispanic and
Non-Hispanic)
White
(Hispanic and
Non-Hispanic)
White, NonHispanic
Percent
Race/Ethnicity
Owner Renter
157
Agenda Item # 3.

A-50 | City of Los Altos Housing Needs Assessment
Figure A-36: Housing Tenure by Age
Notes:

Universe: Occupied housing units
Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25007)
A.4.3 Housing Units Permitted
Between 2015 and 2020, 114 housing units were issued permits in Los Altos. Of these housing units permitted, 97.4 percent were for above moderate-income housing, less than two percent were for low or very low-income housing, and less than one percent was for moderate income units (see Table A-13). Because a large share of its 6th Cycle RHNA is allocated for lower-income housing (approximately 40 percent of total RHNA, or 789 units), the City’s housing plan (Section IV) contains additional programs and policies to increase representation of very low, low, and moderate-income units permitted.
33%
60%
83%
91% 93% 94% 90%
77%
100%
67%
40%
17%
9% 7% 6% 10%
23%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Age 15-
24 Age 25-
34 Age 35-
44 Age 45-
54 Age 55-
59 Age 60-
64 Age 65-
74 Age 75-
84 Age 85+
% of Households
Owner Occupied Renter Occupied
158
Agenda Item # 3.

Housing Needs Assessment City of Los Altos | A-51
Table A-13: Housing Permitting, 2015-2020
Income Group Number of Units
Above Moderate-Income Permits 111
Moderate Income Permits 1
Low Income Permits 2
Very Low-Income Permits 0
Total 114
Source: City of Los Altos
A.4.4 Housing Age and Condition
The age of housing stock is a key indicator of the community’s overall housing condition. As homes get older, there is a greater need for maintenance, repair, and/or replacement of key infrastructure systems. If not properly addressed, an aging housing stock can represent poorer living standards, incur more expensive repair costs and, under certain conditions, lower overall property values.

Production has not kept up with housing demand for several decades in the Bay Area, as the total number of units built and available has not yet come close to meeting the population and job growth experienced throughout the region. In Los Altos, the largest proportion of the housing stock was built between 1940 to 1959, with 4,732 units constructed during this period (see Figure A-37). The housing stock in Santa Clara County is newer than that of Los Altos, with the largest portion of units built 1960 to 1979. Based on U.S. Census Bureau American Community Survey (ACS) data, of the Santa Clara County housing stock, 22.6 percent was built before 1960; while

45.4 percent of Los Altos’ housing stock was built before 1960. Since 2010, 5.6 percent of the current housing stock, or 624 units, was built according to ACS data. 159
Agenda Item # 3.

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Figure A-37: Housing Units by Year Structure Built
Notes:

Universe: Housing units
Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25034)
Substandard Housing
Housing costs in the region are among the highest in the country, which could result in households, particularly renters, needing to live in substandard conditions in order to afford housing. Generally, there is limited data on the extent of substandard housing issues in a community. However, the Census Bureau data included in the graph below gives a sense of some of the substandard conditions that may be present in Los Altos. For example, 4.2 percent of renters (85 units) in Los Altos reported lacking a kitchen and 0.4 percent of renters (eight units) lacked plumbing, compared to 0.0 percent of owners who lacked a kitchen and 0.1 percent of owners (9 units) who lacked plumbing (see Figure A-38).
4,732
3,291
1,338
780 624 292 0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
Built 1940 To
1959
Built 1960 To
1979
Built 1980 To
1999
Built 2000 To
2009
Built 2010 Or
Later
Built 1939 Or
Earlier
Units
160
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Housing Needs Assessment City of Los Altos | A-53
Figure A-38: Substandard Housing Issues
Notes: Per HCD guidance, this data should be supplemented by local estimates of units needing to be rehabilitated or replaced based on recent windshield surveys, local building department data, knowledgeable builders/developers in the community, or nonprofit housing developers or organizations.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25053, Table B25043, Table B25049) The City provided additional information on residential code enforcement cases in Los Altos.

Since 2015, there were only five cases regarding substandard housing conditions. These cases related to unpermitted work, dilapidated conditions, and/or no functional heat. The City works diligently with property owners to address these issues and only has one active case related to substandard housing conditions.

The City’s Code Enforcement Division estimates that between five and 10 residential units in Los Altos require major rehabilitation. This estimate is based on the Code Enforcement staff’s processing of code compliance cases and familiarity with Los Altos neighborhoods and buildings.

Although this is a small number of units, the City will continue to implement its code inspection and enforcement program to address substandard housing conditions (Program 5.D).

0.1%
4%

0.4%
0%
1%
2%
3%
4%
5%
Kitchen Plumbing
% of Units Lacking
Amenity
Owner Renter
161
Agenda Item # 3.

A-54 | City of Los Altos Housing Needs Assessment
Section A.5 Housing Costs and Affordability
A.5.1 Ownership Costs
Home prices reflect a complex mix of supply and demand factors, including an area’s demographic profile, labor market, prevailing wages and job outlook, coupled with land and construction costs. In the Bay Area, the costs of housing have long been among the highest in the nation. The typical home value in Los Altos was estimated at $3,358,590 by December of 2020, per data from Zillow (see Figure A-39). 11 By comparison, the typical home value was $1,290,970 in Santa Clara County and $1,077,230 in the Bay Area.

The region’s home values have increased steadily since 2000, besides a decrease during the Great Recession. The rise in home prices has been especially steep since 2012, with the home value in the Bay Area nearly doubling during this time. Between 2001 and 2020, the typical home value increased by 159 percent in Los Altos. The rate of growth for home values in Los Altos was less than for Santa Clara County (168 percent), but greater than for the Bay Area (142 percent) (see Figure A-39).
11 According to the Zillow Home Value Index (ZHVI), typical home values in Los Altos increased to over $3.5 million in 2021.
162
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Housing Needs Assessment City of Los Altos | A-55
Figure A-39: Zillow Home Value Index (ZHVI)
Notes:

Universe: Owner-occupied housing units
Zillow describes the ZHVI as a smoothed, seasonally adjusted measure of the typical home value and market changes across a given region and housing type. The ZHVI reflects the typical value for homes in the 35th to 65th percentile range. The ZHVI reflects the typical value for homes in the 35th to 65th percentile range. The ZHVI includes all owner-occupied housing units, including both single-family homes and condominiums. More information on the ZHVI is available from Zillow. The regional estimate is a household-weighted average of county-level ZHVI files, where household counts are yearly estimates from DOF’s E-5 series. For unincorporated areas, the value is a population weighted average of unincorporated communities in the county matched to censusdesignated population counts.

Source: ABAG 2021 Pre-certified Housing Needs Data (Zillow, Zillow Home Value Index (ZHVI)) Based on U.S. Census data, which often lags market valuations, the largest proportion of homes in Los Altos were valued at $2M+ (see Figure A-40). By comparison, the largest share of units in the county were valued between $1M and $1.5M and between $500,000 and $750,000 in the Bay Area.
$100,000
$600,000
$1,100,000
$1,600,000
$2,100,000
$2,600,000
$3,100,000
$3,600,000
20012002200320042005200620072008200920102011201220132014201520162017201820192020 Bay Area Santa Clara County Los Altos
163
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Figure A-40: Home Values of Owner-Occupied Units
Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25075)
A.5.2 Rental Costs
Similar to home values, rents have also increased dramatically across the Bay Area in recent years. Many renters have been priced out, evicted or displaced, particularly communities of color.

Residents finding themselves in one of these situations may have had to choose between commuting long distances to their jobs and schools or moving out of the region, and sometimes, out of the state.

It is more expensive to rent a home in Los Altos than it is in Santa Clara County and the Bay Area.

Based on U.S. Census data 55.7 percent of rental units in Los Altos rented for $3,000 or more per month, and 12.0 percent of units rented at $2,500 to $3,000 per month (see Figure A-41). In the county, the largest share of units is in the $2,000 to $2,500 range compared to the $1,500 to $2,000 range for the Bay Area as a whole.
1% 1% 5% 6% 6%
16%
1%
18% 23%
1%
22% 20%
5%
23% 18%
8% 11% 8%
82%
15% 9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Los Altos Santa Clara County Bay Area
Percent of Owner Occupied Units
Units Valued Less than $250k Units Valued $250k-$500k Units Valued $500k-$750k Units Valued $750k-$1M Units Valued $1M-$1.5M Units Valued $1M-$2M Units Valued $2M+
164
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Figure A-41: Contract Rents for Renter-Occupied Units
Notes:

Universe: Renter-occupied housing units paying cash rent Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25056)
According to U.S. Census Data, the median rent in Los Altos has increased by 56.7 percent since 2009, from $1,980 to $3,103 per month (see Figure A-42). In Santa Clara County, the median rent has increased 67.7 percent, from $1,285 to $2,155. The median rent in the region has also increased during this time from $1,200 to $1,850, a 54 percent increase. While Los Altos’ rent increase outpaced the Bay Area but not the county, Los Altos’ rent is 1.4 times greater than that of the county.

Since U.S. Census data often lags market rates, Zillow rental data was obtained to provide more current market rates. Zillow data shows that the typical observed rent price for all housing unit types was approximately $6,490 per month in October 2022. 0%
4% 6%
3%
6%
11% 10%
12%
19%
9%
20%
23%
9%
21%
17%
12%
17%
12%
56%
18%
13%
0%
10%
20%
30%
40%
50%
60%
Los Altos Santa Clara County Bay Area
% of Rental Units
Rent less than $500 Rent $500-$1000 Rent $1000-$1500 Rent $1500-$2000 Rent $2000-$2500 Rent $2500-$3000 Rent $3000 or more
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Figure A-42: Median Contract Rent
Notes:

Universe: Renter-occupied housing units paying cash rent For unincorporated areas, median is calculated using distribution in B25056.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, American Community Survey 5-Year Data releases, starting with 2005-2009 through 2015-2019, B25058, B25056 (for unincorporated areas). County and regional counts are weighted averages of jurisdiction median using B25003 rental unit counts from the relevant year) A.5.3 Overpayment
A standard measure of housing affordability can be determined by comparing the cost of market rate housing to the price residents can afford to pay for housing based on their income levels. A household is considered “cost burdened” if it spends more than 30 percent of its monthly income on housing costs, while those who spend more than 50 percent of their income on housing costs are considered “severely cost burdened.” Low-income residents are the most impacted by high housing costs and experience the highest rates of cost burden. When a household is overpaying for housing costs, the household has less disposable income for other necessities, including health care, food, and clothing. Spending such large portions of their income on housing puts lowincome households at higher risk of displacement, eviction, or homelessness. In the event of unexpected circumstances, such as loss of employment and health problems, lower-income households with a burdensome housing cost are more likely to become homeless or be forced to double-up with other households.

Los Altos has a lower proportion of cost-burdened households compared to the county and the Bay Area. Of Los Altos’ households, approximately 15 percent are cost burdened (1,613 $1,100
$1,600
$2,100
$2,600
$3,100
$3,600
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Dollars
Los Altos Santa Clara County Bay Area
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Housing Needs Assessment City of Los Altos | A-59
households), and 12 percent are severely cost burdened (1,260 households). In the county, the proportions (19 percent and 16 percent, respectively) are higher (see Figure A-43).

Figure A-43: Cost Burden Severity
Notes:

Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities).

For owners, housing cost is "select monthly owner costs", which includes mortgage payment, utilities, association fees, insurance, and real estate taxes. HUD defines cost-burdened households as those whose monthly housing costs exceed 30percent of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50percent of monthly income.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25070, B25091)
Renters are often more cost-burdened than owners. While the housing market has resulted in home prices increasing dramatically, homeowners often have mortgages with fixed rates, whereas renters are more likely to be impacted by market increases. When looking at the cost burden across tenure in Los Altos, 11.4 percent of renter households (230 households) spend 30 to 50 percent of their income on housing compared to 16.0 percent of those that own (1,383 households) (see Figure A-44). Additionally, 11.2 percent of renter households (227 households) spend 50 percent or more of their income on housing, while 12.0 percent of owner households (1,033 households) are severely cost burdened. However, in Los Altos, homeowners are more cost burdened than renters. In total, almost 23 percent of renters (457 households) are cost burdened, compared to 28 percent of owners (2,416 households). 71%
63% 62%
15%
19% 20%
12% 16% 16%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Los Altos Santa Clara County Bay Area
% of Households
0%-30% of Income Used for Housing 30%-50% of Income Used for Housing 50%+ of Income Used for Housing Not Computed
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Figure A-44: Cost Burden by Tenure
Notes:

Universe: Occupied housing units
Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities).

For owners, housing cost is “select monthly owner costs”, which includes mortgage payment, utilities, association fees, insurance, and real estate taxes. HUD defines cost-burdened households as those whose monthly housing costs exceed 30percent of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50percent of monthly income.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25070, B25091)
While approximately 12 percent of households spend 50 percent or more of their income on housing, and 15 percent spend 30 to 50 percent, these rates vary greatly across income categories (see Figure A-45). As expected, lower-income households are more likely to be housing cost burdened than higher-income households. For example, 82.7 percent of Los Altos households making no more than 30 percent of AMI (520 households) spend the majority of their income on housing. In total, 1,193 lower-income households (80 percent of AMI and below) are cost burdened. Over half of households earning between 80 and 100 percent of AMI are cost burdened (355 households). For Los Altos residents making more than 100 percent of AMI, just

3.8 percent are severely cost-burdened (310 households), and 83.2 percent of those making more than 100 percent of AMI spend less than 30 percent of their income on housing.

Low-income households that rent are also more likely to overpay for housing than low-income homeowners. Among low-income Los Altos households that are cost burdened, 21 percent (250 households) rent their home, and 79 percent (945) are homeowners. 71% 68%
16%
11%
12%
11%
9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Owner Occupied Renter Occupied
% of Households
0%-30% of Income Used for Housing 30%-50% of Income Used for Housing 50%+ of Income Used for Housing Not Computed
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Figure A-45: Cost Burden by Income Level
Notes:

Universe: Occupied housing units
Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities).

For owners, housing cost is “select monthly owner costs”, which includes mortgage payment, utilities, association fees, insurance, and real estate taxes. HUD defines cost-burdened households as those whose monthly housing costs exceed 30percent of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50percent of monthly income.

Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Santa Clara and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and VallejoFairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2013-2017 release) Various policies and programs are included to provide more affordable housing options and reduce the level of overpayment experienced in Los Altos. These include programs for inclusionary housing (Program 2.A), assistance and incentives for affordable housing developments (Program 2.C), accessory dwelling units (Program 2.D), housing rehabilitation for low-income households (Program 5.E), and Housing Choice Vouchers (Program 6.D). 10%
37% 40% 42%
83%
8%
25%
29%
36%
13%
83%
38% 31%
22%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0%-30% of AMI 31%-50% of AMI 51%-80% of AMI 81%-100% of AMI Greater than 100% of AMI
% of Households
0%-30% of Income Used for Housing 30%-50% of Income Used for Housing 50%+ of Income Used for Housing
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Currently, people of color are more likely to experience poverty and financial instability as a result of federal and local housing policies that have historically excluded them from the same opportunities extended to white residents. As a result, they often pay a greater percentage of their income on housing, and in turn, are at a greater risk of housing insecurity.

Black or African American (Non-Hispanic) households are the most cost burdened with 25.0 percent spending 30 to 50 percent of their income on housing, and Other Race or Multiple Races (Non-Hispanic) households are the most severely cost burdened with 16.7 percent spending more than 50 percent of their income on housing (see Figure A-46).

Figure A-46: Cost Burden by Race
Notes:

Universe: Occupied housing units
Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities).

For owners, housing cost is “select monthly owner costs”, which includes mortgage payment, utilities, association fees, insurance, and real estate taxes. HUD defines cost-burdened households as those whose monthly housing costs exceed 30percent of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50percent of monthly income.

For the purposes of this graph, the “Hispanic or Latinx” racial/ethnic group represents those who identify as having Hispanic/Latinx ethnicity and may also be members of any racial group. All other racial categories on this graph represent those who identify with that racial category and do not identify with Hispanic/Latinx ethnicity.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2013-2017 release) 71%
50%
72%
53%
64%
13%
25%
15%
19%
23%
14% 12%
17%
13%
25%
11%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
American
Indian or
Alaska Native,
Non-Hispanic
Asian / API,
Non-Hispanic
Black or
African
American,
Non-Hispanic
White, NonHispanicOther Race or
Multiple
Races, NonHispanic
Hispanic or
Latinx
% of Households
0%-30% of Income Used for Housing 30%-50% of Income Used for Housing 50%+ of Income Used for Housing Cost Burden Not computed 170
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Housing Needs Assessment City of Los Altos | A-63
Large family households often have special housing needs due to a lack of adequately sized affordable housing available. The higher costs required for homes with multiple bedrooms can result in larger families experiencing a disproportionate cost burden than the rest of the population and can increase the risk of housing insecurity.

In Los Altos, 12.9 percent of large family households experience a cost burden of 30 percent to 50 percent, while 8.3 percent of households spend more than half of their income on housing.

Approximately 15.7 percent of all other households have a cost burden of 30 percent to 50 percent, with 12.9 percent of households spending more than 50 percent of their income on housing (see Figure A-47). Therefore, larger families in Los Altos are not significantly more likely to be cost burdened than all other household types.

Figure A-47: Cost Burden by Household Size
Notes:

Universe: Occupied housing units
Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities).

For owners, housing cost is “select monthly owner costs”, which includes mortgage payment, utilities, association fees, insurance, and real estate taxes. HUD defines cost-burdened households as those whose monthly housing costs exceed 30percent of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50percent of monthly income.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2013-2017 release) When cost-burdened seniors are no longer able to make house payments or pay rents, displacement from their homes can occur, putting further stress on the local rental market or forcing residents out of the community they call home. Understanding how seniors might be costburdened is of particular importance due to their special housing needs, particularly for lowincome seniors. 81.9 percent of senior households making less than 30 percent of AMI are spending the majority of their income on housing (335 households). For senior households 71% 79%
16%
13%
13% 8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
All other household types Large Family 5+ persons
% of Households
0%-30% of Income Used for Housing 30%-50% of Income Used for Housing 50%+ of Income Used for Housing
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making more than 100 percent of AMI, 79.9 percent are not cost burdened and spend less than 30 percent of their income on housing (see Figure A-48). In total, 36.7 percent of all senior households are cost burdened (1,299 households), but almost 68 percent of low-income senior households are cost burdened (759 households).

Figure A-48: Cost-Burdened Senior Households by Income Level Notes:

Universe: Senior households
For the purposes of this graph, senior households are those with a householder who is aged 62 or older. Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is “select monthly owner costs”, which includes mortgage payment, utilities, association fees, insurance, and real estate taxes. HUD defines cost-burdened households as those whose monthly housing costs exceed 30percent of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50percent of monthly income. Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Santa Clara and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose- SunnyvaleSanta Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located.

Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2013-2017 release) 15%
39% 45%
61%
80%
27%
25%
25%
15%
82%
34% 29%
14% 5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0%-30% of AMI 31%-50% of AMI 51%-80% of AMI 81%-100% of AMI Greater than 100% of AMI
% of Households
0%-30% of Income Used for Housing 30%-50% of Income Used for Housing 50%+ of Income Used for Housing
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Table A-14: Cost-Burdened Senior Households by Income Level Income Group 0%-30% of Income Used
For Housing
30%-50% of Income
Used for Housing
50%+ of Income
Used for Housing % Cost Burdened
0%-30% of AMI 60 14 335 85.3%
31%-50% of
AMI
130 90 115 61.2%
51%-80% of
AMI
170 95 110 54.7%
81%-100% of
AMI
170 70 40 39.3%
Greater than
100% of AMI
1,710 315 115 20.1%
Totals 2,240 584 715 36.7%
Source: ABAG 2021 Pre-certified Housing Needs Data (U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2013-2017 release) Housing Costs Compared to Ability to Pay
The ability to pay for housing is a function of housing cost and other essential living expenses in relation to household income. Since above-moderate income households do not generally have problems in locating affordable units, affordable units are frequently defined as those reasonably priced for households that are low to moderate income.

Table A-15 shows the 2021 income limits and compares these income limits to affordable rent and purchase prices (defined as being no more than 30 percent of gross income). The median gross rent in Los Altos (approximately $3,100 as seen in the Rental Costs section above) is affordable to those earning at least 100 percent of AMI. However, the median purchase price of a home in Los Altos (over $3M) is out of reach for even high-earning households. Based on December 2020 home price data, four-person households must earn well over more than 200 percent of AMI to be able to afford to buy a home in the city. 173
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A-66 | City of Los Altos Housing Needs Assessment
Table A-15: 2021 Santa Clara County Ability to Pay for Housing and Fair Market Rent and Purchase Prices Number of Persons in Household
1 2 3 4
Extremely Low (0-30% AMI)
Annual Income Limit $34,800 $39,800 $44,750 $49,700
Monthly Income $2,900 $3,317 $3,729 $4,142
Max. Monthly Gross Rent1 $870 $995 $1,119 $1,243
Max. Purchase Price 5% down2 $145,700 $162,00 $193,200 $216,800 Max. Purchase Price 20% down3 $190,500 $221,700 $252,500 $283,500 Very Low (30-50% AMI)
Annual Income Limit $58,00 $66,300 $74,600 $82,850
Monthly Income $4,833 $5,525 $6,217 $6,904
Max. Monthly Gross Rent1 $1,450 $1,658 $1,865 $2,071
Max. Purchase Price 5% down2 $256,300 $295,900 $335,400 $374,500 Max. Purchase Price 20% down3 $335,000 $386,800 $438,500 $489,600 Low (50-80% AMI)
Annual Income Limit $82,450 $94,200 $106,000 $117,750
Monthly Income $6,871 $7,850 $8,833 $9,813
Max. Monthly Gross Rent1 $2,061 $2,355 $2,650 $2,944
Max. Purchase Price 5% down2 $372,600 $428,700 $484,800 $541,000 Max. Purchase Price 20% down3 $487,300 $560,400 $634,000 $707,200 Median (100% AMI)
Annual Income Limit $105,900 $121,050 $136,150 $151,300 Monthly Income $8,825 $10,088 $11,346 $12,608
Max. Monthly Gross Rent1 $2,648 $3,026 $3,404 $3,783
Max. Purchase Price 5% down2 $484,500 $556,500 $628,500 $700,800 Max. Purchase Price 20% down3 $633,500 $727,500 $821,700 $916,300 Moderate (80-120% AMI)
Annual Income Limit $127,100 $145,250 $163,400 $181,550 Monthly Income $10,592 $12,104 $13,617 $15,129
Max. Monthly Gross Rent1 $3,178 $3,631 $4,085 $4,539
Max. Purchase Price 5% down2 $585,500 $671,800 $758,300 $844,800 Max. Purchase Price 20% down3 $765,500 $878,300 $991,500 $1,104,500 120-150% AMI
Annual Income Limit $158,850 $181,575 $204,225 $226,950 Monthly Income $13,283 $15,131 $17,019 $18,913
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Table A-15: 2021 Santa Clara County Ability to Pay for Housing and Fair Market Rent and Purchase Prices Number of Persons in Household
1 2 3 4
Max. Monthly Gross Rent1 $3,971 $4,539 $5,106 $5,674
Max. Purchase Price 5% down2 $736,500 $844,800 $952,900 $1,061,000 Max. Purchase Price 20% down3 $963,000 $1,104,500 $1,245,800 $1,387,300 150-180% AMI
Annual Income Limit $190,620 $217,890 $245,070 $272,340 Monthly Income $15,885 $18,158 $20,423 $22,695
Max. Monthly Gross Rent1 $4,766 $5,447 $6,127 $6,809
Max. Purchase Price 5% down2 $880,000 $1,017,800 $1,147,300 $1,277,300 Max. Purchase Price 20% down3 $1,161,000 $1,330,700 $1,500,000 $1,670,000 180-200% AMI
Annual Income Limit $211,800 $242,100 $272,300 $302,600 Monthly Income $17,650 $20,175 $22,692 $25,217
Max. Monthly Gross Rent1 $5,295 $6,053 $6,808 $7,565
Max. Purchase Price 5% down2 $988,800 $1,133,200 $1,277,100 $1,421,300 Max. Purchase Price 20% down3 $1,292,700 $1,481,700 $1,669,600 $1,858,300 Notes:
1 30% of income devoted to maximum monthly rent or mortgage payment, including utilities, taxes, and insurance 2 Assumes 95% loan (i.e., 5% down payment) @ 2.875% annual interest rate and 30-year term 3 Assumes 80% loan (i.e., 20% down payment) @ 2.875% annual interest rate and 30-year term Source: Zillow Mortgage Calculator
A.5.4 At-Risk Housing Assessment
While there is an immense need to produce new affordable housing units, ensuring that the existing affordable housing stock remains affordable is equally important. Additionally, it is typically faster and less expensive to preserve currently affordable units that are at risk of converting to market-rate than it is to build new affordable housing.

The data in the table below comes from the California Housing Partnership’s Preservation Database, the state’s most comprehensive source of information on subsidized affordable housing at risk of losing its affordable status and converting to market-rate housing. According to this database, there are zero assisted units in Los Altos in the Preservation Database. However, this database does not include all deed-restricted affordable units in the state, so the City has reviewed its records for below market rate regulatory agreements. The City has 105 deed restricted below market rate units, consisting of 51 rental units and 54 ownership units. These units have affordability periods of 30 to 55 years, with the newer deed restrictions having the 55- year term. Older contracts reset for an additional 30 years if sold within the restricted period, so 175
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A-68 | City of Los Altos Housing Needs Assessment
those contracts remain indefinitely. Therefore, no unit deed restricted to lower income households would expire in before 2033. Additionally, City Council has directed future rental inclusionary housing units to have affordability terms of 99 years and will consider requiring extended terms for ownership inclusionary housing units also (see Program 2.A).

Table A-16: Assisted Units at Risk of Conversion
Risk Level Los Altos Santa Clara County Bay Area
Low 0 28,001 110,177
Moderate 0 1,471 3,375
High 0 422 1,854
Very High 0 270 1,053
Total Assisted Units in Database 0 30,164 116,459
Notes:

Universe: HUD, Low-Income Housing Tax Credit (LIHTC), USDA, and CalHFA projects. Subsidized or assisted developments that do not have one of the aforementioned financing sources may not be included.

While California Housing Partnership’s Preservation Database is the state’s most comprehensive source of information on subsidized affordable housing at risk of losing its affordable status and converting to market-rate housing, this database does not include all deed-restricted affordable units in the state. Consequently, there may be at-risk assisted units in a jurisdiction that are not captured in this data table. Housing Partnership uses the following categories for assisted housing developments in its database:

Very-High Risk: affordable homes that are at- risk of converting to market rate within the next year that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable non-profit, mission-driven developer.

High Risk: affordable homes that are at-risk of converting to market rate in the next 1-5 years that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable non-profit, mission-driven developer.

Moderate Risk: affordable homes that are at-risk of converting to market rate in the next 5-10 years that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable non-profit, mission-driven developer.

Low Risk: affordable homes that are at- risk of converting to market rate in 10+ years and/or are owned by a large/stable non-profit, mission-driven developer.

Source: ABAG 2021 Pre-certified Housing Needs Data (California Housing Partnership, Preservation Database (2020))
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Sites Inventory and Methodology City of Los Altos | B-1 Appendix B: Sites Inventory &
Methodology
Contents
Appendix B: Sites Inventory & Methodology.............................................. 1 Section B.1 Introduction............................................................................................................ 2 B.1.1 Overview and Purpose .......................................................................................... 2 B.1.2 Regional Housing Needs Allocation ...................................................................... 2 B.1.3 Data....................................................................................................................... 3 Section B.2 Future Residential Development Potential ............................................................ 3 B.2.1 Accessory Dwelling Units ...................................................................................... 3 B.2.2 Entitled and Proposed Developments ................................................................... 4 B.2.3 Assumptions.......................................................................................................... 7 B.2.4 Methodology........................................................................................................10 B.2.5 Suitability of Nonvacant Sites..............................................................................13 Section B.3 Adequacy of Residential Sites in Meeting RHNA................................................19 B.3.1 Summary .............................................................................................................19 B.3.2 Housing Sites Map ..............................................................................................20 B.3.3 Housing Sites Table ............................................................................................25 178
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B-2 | City of Los Altos Sites Inventory and Methodology Section B.1 Introduction
B.1.1 Overview and Purpose
According to California Government Code §65580-65589, the housing element must include an inventory of adequate sites that are zoned and available within the planning period to meet the jurisdiction’s fair share of regional housing needs across all income levels. The sites inventory, in addition to projected accessory dwelling units (ADUs) and entitled or in process development projects, assists in determining if the jurisdiction has enough developable land to meet its Regional Housing Needs Allocation (RHNA), given its current regulatory framework and market conditions. This Appendix details the sites inventory and supporting analysis methodology and assumptions.

B.1.2 Regional Housing Needs Allocation
Jurisdictions must provide sufficient land to accommodate enough housing for all economic segments of the community. Compliance is determined by the jurisdiction’s ability to provide adequate development capacity through appropriate development regulations and land use policies. The number of new units that must be accommodated is established through each jurisdiction’s share of the region’s projected housing needs for the planning period. This share for each jurisdiction is called the Regional Housing Needs Allocation (RHNA).

The Association of Bay Area Governments (ABAG), a regional planning agency, is responsible for distributing the RHNA to each jurisdiction within its nine-county region (including the County of Santa Clara). 1 The RHNA is distributed by income category. For the 2023-2031 Housing Element update, Los Altos is allocated a RHNA of 1,958 units as follows:
• Very Low Income (less than 50 percent of AMI): 501 units (25 percent) • Low Income (50 to 80 percent of AMI): 288 units (15 percent) • Moderate Income (80 to 120 percent of AMI): 326 units (17 percent) • Above Moderate Income (greater than 120 percent of AMI): 843 units (43 percent) For this Housing Element planning period, January 31, 2023, through January 31, 2031, the City must ensure the availability of adequate residential sites to accommodate these units. This Appendix provides an overview of the methodology used to evaluate the adequacy of sites within 1 Association of Bay Area Governments (ABAG) covers a nine-county region, including Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma. 179
Agenda Item # 3.

Sites Inventory and Methodology City of Los Altos | B-3 Los Altos and identifies such sites for future residential development to fulfill the City’s share of regional housing needs.

B.1.3 Data
The sites inventory analysis used data provided by the City, such as GIS data and building permit/entitlement information. The following is an overview of the data used:
• City and County-level parcel GIS data, including General Plan land use designation, zoning district, ownership, existing land use, improvement value, land value, age of building, etc.
• ADU building permits issued
• Entitled projects and projects in the entitlement phase • Prior housing element site inventories
• Annual Progress Reports to HCD during the 5th Cycle
• Zoning Code allowed density
Section B.2 Future Residential Development Potential
B.2.1 Accessory Dwelling Units
New State laws in effect since January 1, 2018 have significantly eased the development standards and streamlined the approval process for Accessory Dwelling Units (ADUs). As a result, the City has experienced an increase in ADU applications and production in recent years. Table B-1 shows the number of building permits issued for ADUs in Los Altos in 2019 through 2021.

Table B-1: ADU Building Permits Issued (2019-2021)
Year Permitted ADUs
2019 36
2020 23
2021 62
Total 121
Annual Average 40.33
From 2019 through 2021, the City issued an average of 40.33 ADU building permits per year. The City is estimating that ADUs will be produced at the same rate or greater throughout the eightyear planning period, resulting in 322 ADUs, even though the City will be conducting further efforts to facilitate ADU production (Program 2.D), described below. 180
Agenda Item # 3.

B-4 | City of Los Altos Sites Inventory and Methodology The City has adopted an ADU Ordinance consistent with current State law and will facilitate ADU production through the preparation of standardized ADU building plans, the hiring of additional staff support for ministerial application reviews, and other efforts. Under Program 2.D, the City will publicize and promote the ADU standard plans through multiple outreach methods and languages.

Furthermore, to increase ADU building permits, the City will promote the availability of funding for ADUs, including the CalHFA ADU Grant Program that provides up to $25,000 to reimburse homeowners for predevelopment costs necessary to build and occupy an ADU. Furthermore, the City will monitor ADU production and affordability throughout the planning period and implement additional action if target ADU numbers are not being met.

ABAG conducted a regional ADU affordability analysis to provide local governments in the region with assumptions for ADU affordability that can be used to assign projected ADUs to income categories. The ADU affordability assumptions identified in the preliminary ABAG analysis for communities with affirmatively furthering fair housing concerns were applied to ADUs projected over the planning period in Table B-2.

Table B-2: Affordability per ABAG ADU Survey
Income Level Percent ADU Projections
Very Low 5% 16
Low 30% 97
Moderate 50% 161
Above Moderate 15% 48
Total 322
Source: ABAG, City of Los Altos
B.2.2 Entitled and Proposed Developments
Because the RHNA projection period for the 2023-2031 Housing Element begins on June 30, 2022, housing developments that have already been proposed or received entitlement and were not issued a certificate of occupancy by June 30, 2022, but are expected to be completed before the end of the planning period (January 31, 2031), can be credited toward the RHNA. Table B-3 lists those projects that meet those criteria and can be credited toward the 6th Cycle RHNA. No entitled or proposed developments are dependent on an infrastructure schedule that would result in construction after January 2031. Furthermore, the City’s Municipal Code does not result in the automatic expiration of projects (i.e., in the case that insignificant progress is made towards meeting conditions of approval by a certain timeframe). 181
Agenda Item # 3.

Sites Inventory and Methodology City of Los Altos | B-5 Table B-3: Entitled and Proposed Developments
Address Status
Vacant/
Existing or
Previous Use
Existing/
Previous ILV*
Existing/
Previous
Building Age*
Units by Income Level1
Very Low Low Moderate
Above
Moderate
Total Net
New2
962 Acacia Under construction Vacant N/A N/A - - - 2 2
385/389 First St. Under construction Commercial 1.19 1955/1980 - - 1 9 10 425 First St. Under construction Office N/A 1975 - 1 2 17 20 444-450 First St. Under construction Office N/A N/A - 1 3 23 27 140 Lyell Under construction Single-Family
Home 0.69 1951 - 1 - 4 4
330 Distel Circle Approved (approved
Sept 2022)
Office –
vacant, no
tenants
N/A 1975 - 90 - - 90
4350 El Camino Real Approved (approved
Sept 2022)
Commercial
(gas station
and
convenience
mart) – fully
occupied

0.26 1969 3 - 4 40 47
4848-4856 El Camino Real Approved, building
permit ready to issue
Commercial –
vacant, no
tenants

0.02 2020 - 7 3 42 52
4898 El Camino Real Approved, in building
permit plan check
Commercial –
vacant, no
tenants

0.81 1959 - 4 2 22 28
5150 El Camino Real Approved, in building
permit plan check
Office –
vacant, no
tenants

0.02 N/A - 16 12 168 196
355/365/371/373 First St. Approved (approved
June 2022)
Commercial –
partially
occupied

0.62/0.28/0.11/

0.97 1991/1938/
1946/1963 3 - 4 43 49
376 First St. Approved (approved
April 2022)
Commercial
(restaurant) –
fully occupied

1.26 1954 - - 3 12 15
182
Agenda Item # 3.

B-6 | City of Los Altos Sites Inventory and Methodology Table B-3: Entitled and Proposed Developments
Address Status
Vacant/
Existing or
Previous Use
Existing/
Previous ILV*
Existing/
Previous
Building Age*
Units by Income Level1
Very Low Low Moderate
Above
Moderate
Total Net
New2
440 First St. Approved (approved
early 2022)
Office –
vacant, no
tenants
N/A 1980 - - - 4 4
343 Main St. Approved
Commercial
(home
improvement)
– fully
occupied

0.29 1938 - - - 1 1
95 First St.

Under review,
approval anticipated
summer 2023
Office –
partially
occupied

0.58 1979 - 3 - 12 15
349 First St.

Under review,
approval anticipated
summer 2023
Office –
vacant, no
tenants

0.12 1960 - - 2 10 12
14 Fourth St.

Under
review/deemed
complete, approval
anticipated by
summer 2023
Single-Family
Home – short
term lease
expires 2023

0.30 1952 - - - 4 3
996 Loraine
Under review,
approval anticipated
by March 2023
Commercial –
vacant, no
tenants

0.54 1965 - - 2 10 12
Subtotal Gross 6 123 38 423 N/A
Subtotal Net New 6 123 38 420 587
* Some pre-development improvement to land value (ILV) and building age data may be unavailable due to the stage of development/construction. ILV is calculated using Santa Clara County Assessor data for improvement value and land value. Building age is the “effective year built” identified in Santa Clara County Assessor data. 1 Any low or moderate units are or will be deed restricted to the identified income level. 2 Certain projects are located on parcels with existing residential units where the existing residential units will be demolished for a project with a larger number of units. All existing units that will be demolished are market rate units; no units to be demolished are subject to a recorded covenant, ordinance, or law that restricts rent levels to affordable to low-income households or subject to any other form of rent or price control by the City. Only the net new number of units are counted toward the RHNA.

Source: City of Los Altos, Santa Clara County Assessor
183
Agenda Item # 3.

Sites Inventory and Methodology City of Los Altos | B-7 Entitled and proposed developments would result in 587 net new units, and most of these projects provide above moderate housing units.

B.2.3 Assumptions
Density
Table B-4 summarizes density for residential and mixed-use zones that allow residential. Los Altos does not have any minimum density standards in any of the following zones.

Table B-4: Density for Zones that Allow Residential
Zone1 Dwelling Units Per Acre
R1-40 Max. 1.1 units/acre
R1-20
Max. 2.2 units/acre
R1-H
R1-10 Max. 4.4 units/acre
R3-5 Max. 8.7 units/acre
R3-4.5 Max. 9.7 units/acre
R3-3 Max 14.5 units/acre
R3-1.8 Max 24.2 units/acre
R3-1
Max 38 units/acre
C-T
CD/R3
No maximum density
CN
CD
CRS

CRS/OAD
1 Per discussions with the City, all Planned Community (PC) and Planned Unit Development (PUD) zoned parcels are built out unless otherwise noted in this Appendix.

Source: City of Los Altos Zoning Code
Realistic Capacity and Development Trends
Table B-5 summarizes assumptions for realistic residential development capacity based on recent development trends from in process, approved, entitled, and/or permitted projects within Los Altos.

Although there are instances in which sites are developing at above 70 percent maximum allowed density (e.g., in the R3-1.8 District), and even more than 100 percent of maximum allowed density in the CT District, the analysis conservatively assumed no parcel would develop at greater than 184
Agenda Item # 3.

B-8 | City of Los Altos Sites Inventory and Methodology 70 percent maximum capacity (in the CT District, the analysis assumed development at 80 percent maximum capacity, which is still conservative relative to CT District development trends).

To continue to facilitate housing in the CT District, the City will increase or remove the density maximum allowed in the CT District (Program 1.B).

Although there are no recent development trends in the CD or CRS/OAD districts, a capacity assumption of 14 units per acre was applied. The CRS development trend of 20 units per acre reflects only one project and represents the low end of the density range for multi-family residential projects the City is receiving applications for throughout mixed-use districts; this Appendix conservatively applies 70 percent of 20 units per acre (14 units per acre) to housing sites in the CD and CRS/OAD districts. Additionally, various programs will remove constraints to increase housing development in these zones (see Appendix C, Housing Constraints and programs under Goal 3).

Table B-5: Zones Realistic Residential Development Capacity Assumptions Zone1 Projects In Process, Approved, Entitled,
and/or Permitted
Average Development
Trends Capacity
Realistic Capacity
Assumption2
R1-H None N/A
70% of maximum
allowed density (1.5
units/acre)
R1-10 None N/A
70% of maximum
allowed density (3.1
units/acre)
R3-1.8 - 140 Lyell (20 units/acre; mixed income 20 units/acre (83% of maximum allowed density)
70% of maximum
allowed density (16.9
units/acre)
R3-1 - 14 Fourth St. (25 units/acre; above
moderate income)*
25 units/acre (66% of
maximum allowed density)
70% of average
development trends
(17.5 units/acre)
CT
- 4848-4856 El Camino Real (71 units/acre;
mixed income)
- 4898 El Camino Real (65 units per acre;
mixed income)
- 330 Distel Circle (108 units/acre; low
income)
- 5150 El Camino Real (52 units/acre; mixed
income)
- 4350 El Camino Real (72 units/acre; mixed
income)
74 units/acre (194% of
maximum allowed density)
80% of maximum
allowed density (30.4
units/acre) (41% of
average development
trends)3
CD/R3
- 349 First St. (75 units/acre; mixed income)*
- 444-450 First St. (77 units/acre; mixed
income)
- 425 First St. (74 units/acre; mixed income)
- 385/389 First St. (45 units/acre; mixed
income)
- 355, 365, 371, 373 First St. (81 units/acre;
mixed income)
62 units/acre
70% of average
development trends
(43.4 units/acre)
185
Agenda Item # 3.

Sites Inventory and Methodology City of Los Altos | B-9 Table B-5: Zones Realistic Residential Development Capacity Assumptions Zone1 Projects In Process, Approved, Entitled,
and/or Permitted
Average Development
Trends Capacity
Realistic Capacity
Assumption2
- 440 First St. (31 units/acre; above
moderate income)
- 376 First St. (75 units/acre; mixed income)
- 95 First St. (34 units/acre; mixed income)*
CN
- 962 Acacia (18 units/acre; above moderate
income)
- 996 Loraine Ave. (60 units/acre; mixed
income)*
39 units/acre
70% of average
development trends
(27.3 units/acre)
CD None N/A 14 units/acre
CRS - 343 Main St. (20 units/acre; above
moderate income) 20 units/acre
70% of average
development trends (14
units/acre)
CRS/OAD None N/A 14 units/acre
Note: See Table B-3 for detailed breakdown of project affordability levels. * Projects are in the entitlement phase/under review.
1 No sites are located in the R1-40, R1-20, R3-5, R3-4.5, R3-3, R3-1.8, or R3-1 zoning districts. 2 Realistic capacity was reduced on certain sites based on constraints (e.g., topography, etc.). For example, 2100 Woods Lane (APNs 34204089 and 34204078) has a maximum capacity of 40 total units, but 11 units are identified for realistic capacity. 3 With implementation of the upzoning described in Program 1.B, the sites inventory analysis assumes a realistic capacity for rezoned CT sites at 40 dwelling units per acre (54 percent of average development trends in the CT District).

Source: City of Los Altos, LWC
From 2015 to 2021, Los Altos received 18 applications for development within its mixed-use zones (on average three development applications annually). None (zero percent) of these 18 applications over six years proposed 100 percent commercial uses (all included residential units).

This demonstrates strong market demand for residential uses within these zones.

Furthermore, with the declining trend of brick-and-mortar retail/commercial coupled with COVID19 pandemic impacts (e.g., the increasing prevalence of working from home, etc.) and continued demand for housing, the likelihood of 100 percent commercial projects is not expected to increase in the near future. The realistic capacity assumptions for mixed-use zones identified in Table B-5 are conservative, reflecting lower densities than demonstrated trends. For instance, the 330 Distel project approved in September 2022 is entitled for 90 lower-income housing units with no commercial uses in the CT District. This site is 0.83 acres, and the approved density is 108 dwelling units per acre, constituting 285 percent of maximum allowed density (38 units per acre).

On average, projects in the CT District are being proposed at 74 dwelling units per acre, or 194 percent of maximum density (see Table B-5). Despite these trends, and as shown in Table B-5, given implementation of upzoning in the CT District described by Program 1.B, the City is only projecting 40 dwelling units per acre as the realistic capacity assumption for development at sites in the CT District. This conservative capacity projection reflects 54 percent of average development trends in the CT District.
186
Agenda Item # 3.

B-10 | City of Los Altos Sites Inventory and Methodology Additionally, the Housing Element includes several rezone programs to allow housing in other commercial or public use zones (e.g., the OA and PCF zoning districts), creating additional mixeduse zones at specified rezone sites (see Programs 1.C and 1.D).2 While these programs propose a maximum density of 30 dwelling units per acre, and therefore are identified as having capacity for lower-income units, the sites inventory analysis conservatively assumes realistic capacity at the minimum proposed density of 20 dwelling units per acre, a capacity assumption of 66.7 percent. This is lower than current development trends in existing mixed-use zoning districts. In addition to providing new areas of the city where housing will be allowed, various programs will remove constraints and facilitate housing development in mixed-use zones, such as modifying parking requirements (Program 3.A), increasing allowed building heights (Program 3.B), removing site-specific FAR restrictions (Program 3.C), streamlining design review procedures (Program

3.H), incentivizing Downtown lot consolidation (Program 1.I), and taking action to move forward with developing housing on City parking plazas (Program 1.H).

Projects that are below maximum density are constrained by various factors, including but not limited the City’s parking requirements. As discussed in Appendix C, the zoning standards for parking citywide will be evaluated and modified together with strategies for Downtown parking management and modifications to the existing standards adopted to facilitate housing production (Program 3.A).

B.2.4 Methodology
To create the adequate sites inventory, the City developed a comprehensive, iterative methodology to screen parcels for near-term development. The methodology is comprised of several phases described below.

Phase 1.A: Vacant Residential Parcels
First, the City identified all vacant residentially-zoned parcels. Parcels were determined to be vacant if they had an assessed land improvement value of zero and confirmed to be vacant given available aerial imagery.

Phase 1.B: Nonvacant, Mixed-Use Parcels
Since Los Altos is generally built out and does not have much available vacant land, nonvacant sites will comprise a substantial portion of the sites inventory. Commercial and mixed-use zoned parcels that allow residential uses were analyzed for redevelopment potential using a ratio of improvement value to land value. The relationship of improvement value to land value is a widely accepted indicator of property utilization and whether redevelopment potential exists; however, 2 There are only two sites zoned PCF that the City is rezoning under Program 1.D to allow for housing: APNs 33609023 and 33609018. In its realistic capacity projections for these sites, the City only considered portions of the areas currently used as surface parking to accommodate housing, anticipating that the sites will continue to operate their existing uses. 187
Agenda Item # 3.

Sites Inventory and Methodology City of Los Altos | B-11 this metric is important to supplement with other data to confirm viability of redevelopment. Land and the improvement values were identified based on Santa Clara County Assessor property tax assessment values.

The following was performed on a parcel basis to determine potential as a site:

1. Divide roll improvement value by roll land value, yielding an Improvement to Land Value Ratio (I:L Ratio).

2. Parcels with an I:L Ratio below 1.0 were considered a potential site.3

3. Building(s) (if any) was built in 1980 or earlier (and therefore over 40 years of age).

In addition to improvement to land value and age of building(s) (if any), nonvacant sites were further screened (see Phase 2), underwent a site-by-site assessment (see Phase 4), and were analyzed relative to existing uses (see B.2.5, Suitability of Nonvacant Sites).

Phase 2: Screening
Parcels that passed through Phase 1 were then screened using the criteria below:

1. The parcel does not have a current entitlement and is not under review (i.e., not included in Table B-3)

2. Current use type is not a park, utility, school, other public use with no redevelopment potential (as specified in HCD guidance) or single-family or multi-family residential use

3. The parcel is not subject to a Mills Act contract (i.e., historic property) Phase 3: Categorization
Eligible parcels were assessed to determine which income levels they can accommodate. Each parcel was determined to be able to accommodate a specific income category given its maximum allowable density standards. The lower income category threshold is consistent with the default density for Los Altos pursuant to Government Code §65583.2.

Table B-6: Income Levels by Density
Density Allowed by Zone Income Level
< 20 dwelling units/acre Above moderate
20 – 29 dwelling units/acre Moderate
> 30 dwelling units/acre Lower
Source: HCD, LWC
3 The Institute of Urban and Regional Development (IURD) at the University of California, Berkeley suggests that an I:L Ratio of below 1.0 is an appropriate factor to facilitate identification of underutilized commercial properties. 188
Agenda Item # 3.

B-12 | City of Los Altos Sites Inventory and Methodology For zones with no maximum density, current development trends were used to inform income level categorization. Per Government Code Sections 65583.2(c)(2)(A) and (B), sites accommodating lower-income housing should be between 0.5 and 10 acres. All sites originally considered for lower income housing capacity but whose lot size is smaller than 0.5 or larger than 10 acres were categorized for moderate income housing capacity, except that sites smaller than

0.25 acres were categorized for above moderate housing capacity.

Phase 4: Site-by-Site Assessment
Despite the screening analysis, some potential sites had existing development or other conditions (e.g., irregular shape, accessibility issues/landlocked, etc.) that preclude them from the site inventory. The analysis included a site-by-site assessment and refinement of sites depending on additional information from direct observation or firsthand experience from City staff. Furthermore, some sites that were screened out of the results (e.g., certain parcels along El Camino Real and in Downtown that had an I:L ratio greater than 1.0 or buildings built after 1980, etc.) were determined to be suitable housing sites based on property owner or developer interest. Those sites were added to the inventory with the appropriate income categorization.

This analysis included an evaluation of environmental and infrastructure constraints, which are described in Appendix C, Section C.4. The 2100 Woods Lane (APNs 34204089 and 34204078) site has a maximum capacity of 40 total units, but 11 units are identified for realistic capacity due to topography and other potential factors that could constraint development capacity. Further adjustments to realistic capacity were reflected based on partial retention or replacement of existing religious and commercial uses, including reduced capacity projections for the PCF rezone sites, the five-acre Woodland Plaza along Grant Road, and the six-acre Rancho Shopping Center along Foothill Expressway. Other environmental constraints, such as those described in Appendix C, do not pose significant environmental constraints to housing. According to the environmental analysis prepared for the Housing Element, “wildfire hazards are not a major concern in the [C]ity… and [n]o part of Los Altos is located within an identified earthquake fault zone as delineated on the Alquist-Priolo Earthquake Fault Zoning Map.” All identified sites have access to infrastructure and utilities.

In addition to the improvement to land value (I:L) ratio screening described in Phase 1.B, the City analyzed potential sites to determine if existing uses would constitute an impediment to residential development. For example, parcels owned and operated by the California Water Service Company and parcels affected by the maximum dwelling unit limit in the Loyola Corners Specific Plan that had passed initial screening were identified as having impediments to residential development and were removed from the sites list. Development trends (see Table B-5) on nonvacant sites were considered in the determination of sites. Market conditions in Los Altos are demonstrating viability of nonvacant site redevelopment for both residential and mixed-use projects as shown by current development trends. See Section B.2.5 for additional discussion on suitability of nonvacant sites.
189
Agenda Item # 3.

Sites Inventory and Methodology City of Los Altos | B-13 Phase 5: Parcels in Prior Housing Elements
Vacant parcels from both the 4th and 5th Cycles and non-vacant parcels from the 5th Cycle can be reused in this Housing Element (the 6th Cycle) to accommodate lower-income housing, but they must be rezoned to allow projects with at least 20 percent of the units affordable to lower income households to be by-right. Figures B-1, B-2, B-3, and B-4 and Table B-10 show 6th Cycle sites and any site previously identified as a site in the 5th Cycle. A program is included to rezone reused sites identified for lower income consistent with AB 1397.

Phase 6: Rezone Sites Selection
The preliminary evaluation of existing residential capacity showed the need to identify additional sites to accommodate the RHNA. The City solicited ideas from staff, elected and appointed officials, and the public (including interested property owners) in order to identify potential rezoning measures and rezone sites to accommodate the RHNA. The potential rezone areas/parcels and associated evaluation were presented and discussed at the Planning Commission and City Council. The City Council considered input from the public and Commission before approving the rezone areas/parcels for inclusion in the Housing Element. Based on this direction, this Housing Element includes Programs 1.B, 1.C, 1.D, 1.E, and 1.F to upzone certain mixed-use districts (e.g., the CT District), allow housing in zoning districts that do not currently allow housing (at selected OA and PCF-zoned sites), remove constraining development standards in Loyola Corners, and rezone the Village Court parcel to CT.

B.2.5 Suitability of Nonvacant Sites
Since Los Altos is generally built out, the sites inventory is comprised largely of nonvacant sites.

Nonvacant sites are relied on to accommodate more than 50 percent of the City’s lower income RHNA; therefore, pursuant to Government Code §65583.2(g)(2), the City also analyzed whether substantial evidence exists to support that existing uses on identified lower income sites will be discontinued during the planning period (2023-2031). To this effect, the resolution adopting the Housing Element will include findings based on substantial evidence (and described more generally below) that the existing uses on identified nonvacant sites are not an impediment to residential development and/or will likely discontinue during the planning period.

Nonvacant parcels included as sites are underutilized with primarily surface parking and commercial buildings where the existing uses are of lower economic viability, substantial opportunity is physically present for additional development, and/or the structures are at or near the end of their useful life. This includes sites with structures (if any) that were built before 1980 (over 42 years old) and the parcel has a low improvement to land value (i.e., below 1.0). The declining trend of brick-and-mortar retail coupled with COVID-19 pandemic impacts has dramatically impacted the viability of many commercial uses—as demonstrated in Table B-3, even several fully-occupied commercial properties and properties with other low-intensity uses are 190
Agenda Item # 3.

B-14 | City of Los Altos Sites Inventory and Methodology being converted into multi-family and residential mixed-use projects in Los Altos. These conversions are occurring based on the strong demand for housing and lack of vacant land.

One example is the Foothill Crossing Shopping Center (Foothill Crossing; APNs 32601052 and 32601053; 22350 and 22310 Homestead Road), a strip commercial center in Los Altos that contains surface parking lots. Although Foothill Crossing is regularly frequented by customers and appears to be functioning relatively successfully as a commercial site, an interested applicant recently expressed to the City desire to redevelop Foothill Crossing as a mixed-use site with highdensity residential and commercial uses. In addition to proposing housing and new retail, the current conceptual plan preserves key existing retail uses (e.g., Trader Joe’s). Foothill Crossing has Improvement-to-Land Value ratios of 0.27 and 0.61 respectively and was constructed in the late 1960s to early 1970s.

In addition to Foothill Crossing, other large commercial centers in Los Altos have been discussed as redevelopment opportunities for housing or mixed-use, including the Rancho Shopping Center (APN 18956014; 600 Foothill Expressway). Rancho Shopping Center has an Improvement-toLand Value ratio of 0.59 and was built prior to 1980, consistent with the methodology used for identifying other nonvacant sites.
4 This Housing Element further facilitates development of the Rancho Shopping Center and other commercial centers (i.e., Woodland Plaza) by removing the floor-to-area ratio (FAR) restriction through Program 3.C.5 Foothill Crossing, Rancho Shopping Center, and parts of Woodland Plaza are all identified as lower income housing sites. They have similar characteristics to many of the other lower income sites, including:
• Improvement-to-Land Value ratios less than 1.0
• Multi-tenant commercial uses
• Partial occupancy and vacancies, in the case of Foothill Crossing and Rancho Shopping Center
Development trends demonstrate the intensification of underutilized commercial properties into multi-family and high-density residential mixed-use projects. Table B-5 identifies recent development projects and shows average density trends in both residential and mixed-use zones; most of these projects are on nonvacant sites. Existing uses on pipeline project parcels include the following:
• Office buildings
• Commercial buildings (including vacant, partially occupied, and fully occupied) 4 See Section B.2.4. These are the same screening criteria used for identifying the lower-income nonvacant sites in Table B-7, who were also subject to the income categorization described in Section B.2.4 5 Woodland Plaza (APNs 31816022, 31816020, 31816019, 31816015) has Improvement-to-Land Value ratios of 0.37,

0.07, 0.46, 0.22, respectively.
191
Agenda Item # 3.

Sites Inventory and Methodology City of Los Altos | B-15 • Restaurants
• Gas station and convenience mart
• Single-family homes
Redevelopment of sites with similar conditions to the identified sites is occurring in Los Altos, and recent applications and entitlements consist of residential mixed-use or residential-only projects in all cases. Additionally, nonvacant parcels with development entitled or proposed (Table B-3) have similar characteristics as proposed housing sites, including structure age generally ranging from 1938 to 1980 and improvement to land value ratios below 1.0. Most identified nonvacant sites have improvement to land value ratios below 0.92.

Additionally, potential long-term impacts on how office space will be utilized with the shift to remote work during the COVID-19 pandemic were considered. Identified sites, including those with existing office uses, consist of older buildings with low improvement values where higher intensity residential mixed-use is, or will be, allowed. Moreover, the sites inventory also includes several City-owned parking lots, which, as identified in the Downtown Vision Plan, are opportunity sites that can accommodate new (and in some cases affordable) housing. Program 1.H addresses how the City will facilitate housing on City-owned sites consistent with Surplus Land Act requirements.

Other existing uses on nonvacant sites include low intensity uses. Specifically, church sites have been included based on the screening criteria detailed in Section B.2.4 and City first-hand knowledge. To this effect, AB 1851, approved by the Governor in 2020, facilitates the provision of housing on religious institution property. AB 1851 prohibits cities from requiring the replacement of parking spaces lost due to the construction of housing units, eliminating up to 50 percent of the required number of spaces (Government Code §65913.6). Program 1.D has been included for the City to conduct outreach to religious institution property owners and operators to inform them of AB 1851 and other applicable regulations that encourage housing development.

The screening for potential sites considered these trends and utilized conservative assumptions in projecting units well below observed densities for residential and mixed-use projects. Lastly, the City is unaware of any leases that would perpetuate existing uses or prevent the development of housing on nonvacant sites during the planning period. During development and public review of the Draft Housing Element, no additional lease information was found to preclude identified housing sites from the inventory.

The following table lists the existing uses on lower income sites, including potential sites for rezoning. These existing uses are not considered to be an impediment to the development of housing during the planning period (2023-2031) based on development trends, market conditions, and redevelopment potential (e.g., building age, property condition, improvement-to-land-value ratio, existing use, etc.). Many lower income sites are surface parking lots with underutilized and/or underperforming multi-tenant commercial uses or offices (similar to the existing or previous uses at sites containing proposed and entitled projects identified in Table B-3) where significant development intensity can be achieved. As shown in Table B-7, owner interest in property 192
Agenda Item # 3.

B-16 | City of Los Altos Sites Inventory and Methodology redevelopment for housing has been indicated for several nonvacant lower income sites. As evidenced by interest in projects such as the possible redevelopment of Foothill Crossing as a mixed-use site and entitlement of 330 Distel Circle for affordable housing described above, there is development pressure in Los Altos and throughout the Bay Area for multi-tenant commercial and office uses to convert to housing, including the conversion of unoccupied, partially-occupied, or even well-functioning commercial or office uses (e.g., Foothill Crossing Shopping Center discussed above). Several uses identified in Table B-7 (e.g., multi-tenant commercial, including restaurants, offices) are uses currently being redeveloped into housing as shown in Table B-3.

Moreover, as shown below, many lower-income sites are located along or near major thoroughfares such as El Camino Real and are zoned CT (also mirroring sites in Table B-3 that are redeveloping for housing). As described in Section B.2.3 and in Table B-5, projects in the CT District are being proposed on average at 74 dwelling units per acre, approximately 194 percent of maximum density, further indicating strong residential demand at these and at similar parcels.

Parcels along other key thoroughfares such as Foothill Expressway and San Antonio Road (especially OA-zoned site near Downtown Los Altos) could also accommodate similar pent-up demand in areas where residential is not currently allowed.

Table B-7: Existing Uses on Nonvacant Lower Income Sites and Potential Sites for Rezoning for Lower Income Address APN Zone Parcel Size
(acres) Existing Use
1188 LOS
ALTOS AVE 16710094* CT 0.51 Commercial and surface parking

EL CAMINO
REAL 17003084* CT 0.54 Surface parking lot
4844 EL
CAMINO REAL 17002023* CT 0.55 Retail store (candy shop) and surface parking lot 4500 EL
CAMINO REAL 16712045* CT 0.56 Multi-tenant (personal services - massage, hair studio, fencing club) and surface parking lot
5000 EL
CAMINO REAL 17004050* CT 0.62 Carl’s Jr. and surface parking lot1 4906 EL
CAMINO REAL 17003077* CT 0.69 Multi-tenant (medical, dental, and other offices) and surface parking lot1
2057 GRANT
RD 31816020 CN 0.71
Multi-tenant (commercial – cleaning services)
and surface parking lot
4970 EL
CAMINO REAL 17064120* CT 0.78 Multi-tenant offices and surface parking lot1 2111 GRANT
RD 31816019 CN 0.88
Portion of Woodland Plaza
Grocery store and surface parking lot
4988 EL
CAMINO REAL 17064119* CT 0.94
Partially occupied multi-tenant (tax and
accounting services, other general offices) and
surface parking lot1
4926 EL
CAMINO REAL 17003073* CT 1.05 Restaurant and surface parking lot 193
Agenda Item # 3.

Sites Inventory and Methodology City of Los Altos | B-17 Table B-7: Existing Uses on Nonvacant Lower Income Sites and Potential Sites for Rezoning for Lower Income Address APN Zone Parcel Size
(acres) Existing Use
4546 X EL

CAMINO REAL
16712047* CT 1.68
Portion of Village Court
Partially occupied multi-tenant (commercial,
including restaurants, general and medical
offices, insurance and financial institutions) and
surface parking lot
22350

HOMESTEAD
RD 32601052 CN 2.08
Portion of Foothill Crossing
Partially occupied multi-tenant commercial and
surface parking lot1
22310

HOMESTEAD
RD 32601053 CN 2.94
Portion of Foothill Crossing
Partially occupied multi-tenant commercial and
surface parking lot1
2185 GRANT
RD 31816022 CN 3.34
Portion of Woodland Plaza
Grocery store and surface parking lot
600 FOOTHILL
EX 18956014 CN 6.00
Rancho Shopping Center
Partially occupied multi-tenant (coffee shop,
postal services, exercise gym, restaurants,
barbershop, real estate, beauty salon) and
surface parking lot
895

SHERWOOD
AV
17001055* OA 0.56 Multi-tenant (massage and fitness studio) and surface parking lot
745 DISTEL
DR 17004045* OA 0.56 Multi-tenant (architecture and financial services offices)
289 S SAN
ANTONIO RD 17041086* OA 0.60 Multi-tenant (title company, financial services, pool and spa) and surface parking lot
901 FREMONT
AV 18915106* CN 0.70 Bank and surface parking lot
399 S SAN
ANTONIO RD 17040082* OA 0.76 Mortuary and surface parking lot 161 S SAN
ANTONIO RD 17042028* OA 0.90 Multi-tenant (real estate offices) and surface parking lot
211 S SAN
ANTONIO RD 17041079* OA 0.99 Bank and surface parking lot 1000
FREMONT AV 31801036* CN 1.22 Partially occupied multi-tenant commercial and surface parking lot1
851 FREMONT
AV 18914081* OA 1.85 Partially occupied multi-tenant (medical offices) and surface parking lot
4546 EL
CAMINO
REAL2
16712042* R1-101 2.78
Portion of Village Court Shopping Center
Partially occupied multi-tenant (general and
medical offices, commercial services and retail,
including massage, postal services, therapy) and
surface parking lot1
655

MAGDALENA
AV
33609023* PCF 6.06 Los Altos United Methodist Church, preschool, and surface parking lot
625

MAGDALENA
AV
33609018* PCF 6.50 Bridges Community Church and surface parking lot
194
Agenda Item # 3.

B-18 | City of Los Altos Sites Inventory and Methodology Table B-7: Existing Uses on Nonvacant Lower Income Sites and Potential Sites for Rezoning for Lower Income Address APN Zone Parcel Size
(acres) Existing Use
*These parcels are rezone sites.
1 Owner interest in property redevelopment for housing indicated. 2 APN 16712042 (4546 El Camino Real) would be rezoned CT under the rezoning program (Program 1.F), and therefore would accommodate lower income units.

Source: City of Los Altos, Santa Clara County Assessor, LWC Furthermore, to encourage the redevelopment of nonvacant sites with higher-density residential uses, the City has multiple programs to provide financial assistance, incentives, and regulatory concessions to facilitate more intensive residential development. These include:
• Program 1.A: Rezone for RHNA Shortfall
• Program 1.B: Facilitate higher density housing in the Commercial Thoroughfare (CT) District
• Program 1.C: Allow housing in the Office Administrative (OA) District • Program 1.D: Allow housing on certain Public and Community Facilities (PCF) District sites
• Program 1.E: Update the Loyola Corners Specific Plan
• Program 1.F: Rezone Village Court parcel
• Program 1.H: Facilitate housing on City-owned sites
• Program 1.I: Incentivize Downtown lot consolidation
• Program 1.N: Facilitate and monitor pipeline housing projects. • Program 2.C: Assist in securing funding for affordable housing projects • Program 3.A: Prepare a Downtown parking plan and update parking requirements • Program 3.B: Modify building height in mixed-use zoning districts • Program 3.C: Remove floor-to-area ratio (FAR) restriction at Rancho Shopping Center and Woodland Plaza
As described above, many of the housing sites have underutilized commercial spaces and/or low intensity uses which are anticipated to redevelop based on trends, market conditions, and interest expressed to City staff for redevelopment. Additionally, the City will take efforts to continue to encourage redevelopment of nonvacant sites through various programs. Therefore, considering development trends, declining demand for commercial spaces, and Housing Element programs, 195
Agenda Item # 3.

Sites Inventory and Methodology City of Los Altos | B-19 nonvacant uses will not impede residential development and/or are likely to discontinue during the planning period.

Section B.3 Adequacy of Residential Sites in Meeting
RHNA
B.3.1 Summary
The following table summarizes the City’s methods for satisfying its RHNA (Table B-8). Based on ADU projections, entitled and proposed projects, and available sites, the City has excess capacity in moderate- and lower-income categories and a shortfall in the above moderate-income category.

Table B-8: Residential Development Potential and RHNA

Extremely
Low Very Low Low Moderate Above Moderate Total
RHNA See Very Low 501 288 326 843 1,958
ADUs See Very Low 16 97 161 48 322
Entitled/Proposed
Projects1 - 6 123 38 420 587
Remaining RHNA See Very Low 479 68 127 375 1,049
Site Inventory1 See Very
Low/Low 557 168 323 1,048
Surplus / (Shortfall) See Very
Low/Low 10 41 (52) (1)
1 Considers net new units only.

Source: City of Los Altos, LWC
The City has identified potential parcels for rezoning to address the above moderate shortfall and provide additional lower and moderate-income housing capacity. If the potential candidate parcels are rezoned in accordance with programs under Goal 1, the City would have a surplus in all income categories as shown in Table B-9.
196
Agenda Item # 3.

B-20 | City of Los Altos Sites Inventory and Methodology Table B-9: Residential Development Potential and RHNA – WITH REZONING

Extremely
Low Very Low Low Moderate Above Moderate Total
RHNA See Very Low 501 288 326 843 1,958
ADUs See Very Low 16 97 161 48 322
Entitled/Proposed
Projects1 - 6 123 38 420 587
Remaining RHNA See Very Low 479 68 127 375 1,049
Site Inventory1 See Very
Low/Low 965 296 387 1,648
Surplus / (Shortfall) See Very
Low/Low 418 169 12 599
1 Considers net new units only.

Source: City of Los Altos, LWC
AB 725 requires at least 25 percent of the above moderate income RHNA be met on sites that allow four or more units, and at least 25 percent of the moderate income RHNA be met on sites that allow four or more units, but not more than 100 units per acre. The City’s sites inventory complies with these requirements.

B.3.2 Housing Sites Map
The following maps (Figures B-1, B-2, B-3, and B-4) show the inventory of sites by income category. Sites that were also included in the 5th Cycle Housing Element are identified with a bold border. Additional sites maps are included in Appendix F (Affirmatively Furthering Fair Housing), Section F.3.
197
Agenda Item # 3.

Sites Inventory and Methodology City of Los Altos | B-21 Figure B-1: 6th Cycle Housing Element Site Inventory Map by Income Category (Northern Portion of Los Altos) 198
Agenda Item # 3.

B-22 | City of Los Altos Sites Inventory and Methodology Figure B-2: 6th Cycle Housing Element Site Inventory Map by Income Category (North-Central Portion of Los Altos) 199
Agenda Item # 3.

Sites Inventory and Methodology City of Los Altos | B-23 Figure B-3: 6th Cycle Housing Element Site Inventory Map by Income Category (South-Central Portion of Los Altos) 200
Agenda Item # 3.

B-24 | City of Los Altos Sites Inventory and Methodology Figure B-4: 6th Cycle Housing Element Site Inventory Map by Income Category (Southern Portion of Los Altos) 201
Agenda Item # 3.

Sites Inventory and Methodology City of Los Altos | B-25 B.3.3 Housing Sites Table
Table B-10 lists the parcels in the City’s housing sites inventory with unit capacity by income category.

Table B-11 lists all of the rezone parcels with unit capacity by income category. 202
Agenda Item # 3.

B-26 | City of Los Altos Sites Inventory and Methodology Table B-10: Housing Sites (Under Existing Zoning)
Address APN Zoning General Plan1 Parcel
Size Existing Use
Year
Built2 ILV3
5th
Cycle
Site4
Income
Category
Units
(Max)
Units
(Realistic,
Net)
1188 LOS ALTOS AV 16710094 CT Thoroughfare Commercial 0.51 Commercial and surface parking 1956 1.15 No Lower 19 16 EL CAMINO REAL 17003084 CT Thoroughfare Commercial 0.54 Surface parking lot 0 0.00 Yes Lower 21 16 4844 EL CAMINO REAL 17002023 CT Thoroughfare Commercial 0.55 Individual Retail Stores 0 1.57 Yes Lower 21 17 4500 EL CAMINO REAL 16712045 CT Thoroughfare Commercial 0.56 Multiple or Strip Stores 1976 1.73 No Lower 21 17 5000 EL CAMINO REAL 17004050 CT Thoroughfare Commercial 0.62 Fast Food Eatery 1974 0.11 Yes Lower 24 19 4906 EL CAMINO REAL 17003077 CT Thoroughfare Commercial 0.69 Medical, Dental, Veterinary 1984 1.16 No Lower 26 21 2057 GRANT RD 31816020 CN Neighborhood Commercial 0.71
Multi-tenant (commercial –
cleaning services)
and surface parking lot 1959 0.07 No Lower 28 14
4970 EL CAMINO REAL 17064120 CT Thoroughfare Commercial 0.78 General Office 1985 0.17 No Lower 30 24 2111 GRANT RD 31816019 CN Neighborhood Commercial 0.88
Portion of Woodland Plaza;
Grocery store and surface parking
lot 0 0.46 No Lower 34 14
4988 EL CAMINO REAL 17064119 CT Thoroughfare Commercial 0.94 General Office 1981 0.13 No Lower 36 29 4926 EL CAMINO REAL 17003073 CT Thoroughfare Commercial 1.05 Restaurant and surface parking lot 1968 0.05 No Lower 40 32 4546 X EL CAMINO REAL 16712047 CT Thoroughfare Commercial 1.69 Commercial building and surface
parking lot 1964 0.00 Yes Lower 64 51
22350 HOMESTEAD RD 32601052 CN Neighborhood Commercial 2.08 Portion of Foothill Crossing;
Partially occupied multi-tenant
commercial and surface parking
lot 1969 0.27 No Lower 81 57
22310 HOMESTEAD RD 32601053 CN Neighborhood Commercial 2.94 Portion of Foothill Crossing;
Partially occupied multi-tenant
commercial and surface parking
lot 1973 0.61 No Lower 115 80
2185 GRANT RD 31816022 CN Neighborhood Commercial 3.34
Portion of Woodland Plaza;
Grocery store and surface parking
lot 1997 0.37 No Lower 130 68
600 FOOTHILL EX 18956014 CN Neighborhood Commercial 6.07 Rancho Shopping Center; Partially
occupied multi-tenant (coffee
shop, postal services, exercise
gym, restaurants, barbershop,
real estate, beauty salon) and
surface parking lot 1900 0.59 No Lower 237 82
Total - Lower 557
203
Agenda Item # 3.

Sites Inventory and Methodology City of Los Altos | B-27 Table B-10: Housing Sites (Under Existing Zoning, Continued) Address APN Zoning General Plan1 Parcel
Size Existing Use
Year
Built2 ILV3 5th Cycle Site4
Income
Category
Units
(Max)
Units
(Realistic,
Net)
392 1ST ST 16741007 CD/R3 Downtown Commercial 0.26
Offices or commercial with
surface parking 1958 0.50 No Moderate 16 11
146 MAIN ST 16738020 CRS Downtown Commercial 0.28 Large building 0 0.92 No Moderate 6 4 342 1ST ST 16741065 CRS Downtown Commercial 0.29 Surface parking lot 0 0.05 No Moderate 6 4 4646 EL CAMINO REAL 17001088 CN Thoroughfare Commercial 0.29 Offices or commercial and
surface parking lot 1958 0.47 No Moderate 11 8
2235 GRANT RD 31816011 CN Neighborhood Commercial 0.30
Offices or commercial and
surface parking lot 1961 0.10 No Moderate 12 8
169 MAIN ST 16738008 CRS Downtown Commercial 0.30 Multiple or Strip Stores 1952 0.86 No Moderate 6 4 994 ACACIA AV 17001047 CN Thoroughfare Commercial 0.31
Residential or commercial
with surface parking 1924 0.17 Yes Moderate 12 8
2249 GRANT RD 31816009 CN Neighborhood Commercial 0.31
Commercial building with
surface parking 1962 0.49 No Moderate 12 8
5084 EL CAMINO REAL 17004065 CT Thoroughfare Commercial 0.31 Individual Retail Stores 1950 1.16 No Moderate 12 10 2073 GRANT RD 31816015 CN Neighborhood Commercial 0.32
Auto Service, Garages and
surface parking 1959 0.22 No Moderate 12 9
PARKING LOT ONLY 16738038 CRS Public and Institutional 0.34 Surface parking 0 0.00 No Moderate 7 5 2251 GRANT RD 31816008 CN Neighborhood Commercial 0.44
Offices and surface
parking lot 1975 0.27 No Moderate 17 12
1ST ST 16739057 CRS Public and Institutional 0.57 Surface parking lot 0 No Moderate 11 8 4TH ST 16738029 CRS Public and Institutional 0.58 Surface parking lot 0 No Moderate 12 8 STATE ST 16738028 CRS Downtown Commercial 0.58 Surface parking lot 0 No Moderate 12 8 2ND ST 16739069 CRS Public and Institutional 0.60 Surface parking lot 0 No Moderate 12 8 342 1ST ST 16741003 CRS Downtown Commercial 1.00
Supermarket w. surface
parking lot 1966 0.52 No Moderate 20 14
1ST ST 16739032 CRS Public and Institutional 1.04 Surface parking lot 0 No Moderate 21 15 2ND ST 16739007 CRS Public and Institutional 1.18 Surface parking lot 0 No Moderate 24 16 Total - Moderate 168
204
Agenda Item # 3.

B-28 | City of Los Altos Sites Inventory and Methodology Table B-10: Housing Sites (Under Existing Zoning, Continued) Address APN Zoning General Plan1 Parcel
Size Existing Use
Year
Built2 ILV3
5th
Cycle
Site4
Income
Category
Units
(Max)
Units
(Realistic,
Net)
355 STATE ST 16739060 CRS Downtown Commercial 0.05 Restaurants, Bars 1962 0.46 No Above Moderate 1 1 168 MAIN ST 16738024 CRS Downtown Commercial 0.05 Commercial and surface parking lot 1957 0.48 No Above Moderate 1 1 290 MAIN ST 16739105 CRS Downtown Commercial 0.05 Commercial 1940 0.76 No Above Moderate 1 1 380 MAIN ST 16739089 CRS Downtown Commercial 0.05 Commercial and surface parking lot 1950 0.35 No Above Moderate 1 1 334 MAIN ST 16739084 CRS Downtown Commercial 0.05 Commercial 1959 1.00 No Above Moderate 1 1 346 MAIN ST 16739085 CRS Downtown Commercial 0.05 Commercial and surface parking lot 1910 0.39 No Above Moderate 1 1 991 N SAN ANTONIO RD 17001029 CN Thoroughfare Commercial 0.05 Commercial and surface parking lot 1942 0.41 No Above Moderate 2 1 252 MAIN ST 16739075 CRS Downtown Commercial 0.06 Commercial and surface parking lot 1951 0.17 No Above Moderate 1 1 1005 ACACIA AV 17001045 CN Thoroughfare Commercial 0.06 Surface parking lot 1940 0.00 Yes Above Moderate 2 2 398 MAIN ST 16739091 CRS Downtown Commercial 0.06 Commercial 1910 0.51 No Above Moderate 1 1 242 STATE ST 16739011 CRS Downtown Commercial 0.06 Restaurants, Bars 1960 0.67 No Above Moderate 1 1 244 STATE ST 16739012 CRS Downtown Commercial 0.06 Restaurants, Bars 1920 0.47 No Above Moderate 1 1 351 MAIN ST 16740004 CRS Downtown Commercial 0.06 Commercial with surface parking lot 1925 0.50 No Above Moderate 1 1 60 MAIN ST 16738057 CRS/OAD Downtown Commercial 0.06 Office or church 1963 0.72 No Above Moderate - 1 189 MAIN ST 16738053 CRS Downtown Commercial 0.06 Commercial or Offices 1960 0.25 No Above Moderate 1 1 4598 EL CAMINO REAL 17001036 CN Thoroughfare Commercial 0.07 Commercial and surface parking lot 1960 0.86 No Above Moderate 3 2 N SAN ANTONIO RD 17001035 CN Thoroughfare Commercial 0.07 Surface parking lot 0 0.00 No Above Moderate 3 2 399 1ST ST 16741021 CD/R3 Downtown Commercial 0.07 Restaurant and surface parking lot 1951 0.40 No Above Moderate 4 3 395 1ST ST 16741022 CD/R3 Downtown Commercial 0.07 Office and surface parking lot 1954 0.13 No Above Moderate 4 3 248 MAIN ST 16739074 CRS Downtown Commercial 0.07 Commercial or office with surface parking 1948 0.66 No Above Moderate 1 1 139 1ST ST 16739043 CD/R3 Downtown Commercial 0.08 Auto Service, Garages 1949 2.41 No Above Moderate 5 4 141 1ST ST 16739042 CD/R3 Downtown Commercial 0.08 General Office 2008 3.09 No Above Moderate 5 4 1019 N SAN ANTONIO RD 17001030 CN Thoroughfare Commercial 0.08 Surface parking lot 0 0.00 No Above Moderate 3 2 170 MAIN ST 16738025 CRS Downtown Commercial 0.09 Bank and surface parking 0 0.00 No Above Moderate 2 1 1ST ST 16741006 CD/R3 Downtown Commercial 0.10 Surface parking lot 0 0.00 No Above Moderate 6 4 179 MAIN ST 16738052 CRS Downtown Commercial 0.10 Commercial/restaurant 1952 0.12 No Above Moderate 2 1 133 MAIN ST 16738013 CRS Downtown Commercial 0.10 Commercial stores 1955 0.32 No Above Moderate 2 1 925 N SAN ANTONIO RD 17001026 CN Thoroughfare Commercial 0.10 Dentist Office and surface parking 1961 0.92 No Above Moderate 4 3 4TH ST 16738051 CRS Downtown Commercial 0.10 Surface parking lot 0 No Above Moderate 2 1 141 MAIN ST 16738012 CRS Downtown Commercial 0.10 Commercial and restaurant 1952 0.74 No Above Moderate 2 1 1ST ST 16741016 CD/R3 Downtown Commercial 0.11 Surface parking lot 0 0.03 Yes Above Moderate 7 5 285 STATE ST 16739064 CRS Downtown Commercial 0.11 Stores 1953 0.29 No Above Moderate 2 2 SHERWOOD AV 17001064 CN Thoroughfare Commercial 0.11 Offices 0 0.00 No Above Moderate 4 3 262 MAIN ST 16739076 CRS Downtown Commercial 0.11 Commercial and surface parking 1950 0.86 No Above Moderate 2 2 988 SHERWOOD AV 17001042 CN Thoroughfare Commercial 0.12 Surface parking lot 1900 0.00 Yes Above Moderate 5 3 952 ACACIA AV 17001049 CN Thoroughfare Commercial 0.12 Surface parking lot 1947 0.62 Yes Above Moderate 5 3 252 STATE ST 16739097 CRS Downtown Commercial 0.12 Commercial 1939 0.89 No Above Moderate 2 2 357 MAIN ST 16740003 CRS Downtown Commercial 0.12 Commercial 1936 0.58 No Above Moderate 2 2 205
Agenda Item # 3.

Sites Inventory and Methodology City of Los Altos | B-29 Table B-10: Housing Sites (Under Existing Zoning, Continued) Address APN Zoning General Plan1 Parcel
Size Existing Use
Year
Built2 ILV3
5th
Cycle
Site4
Income
Category
Units
(Max)
Units
(Realistic,
Net)
435 1ST ST 16741018 CD/R3 Downtown Commercial 0.12 Stores and surface parking 1946 0.19 No Above Moderate 7 5 366 1ST ST 16741051 CD/R3 Downtown Commercial 0.12 Commercial or office with surface parking 1955 0.00 No Above Moderate 8 5 160 MAIN ST 16738021 CRS Downtown Commercial 0.12 Office or commercial building with surface parking 1955 0.87 No Above Moderate 2 2 147 MAIN ST 16738011 CRS Downtown Commercial 0.13 Commercial building 1954 0.99 No Above Moderate 3 2 905 N SAN ANTONIO RD 17001023 CN Thoroughfare Commercial 0.14 Commercial and surface parking lot 1955 0.24 No Above Moderate 5 4 270 2ND ST 16740073 CD Downtown Commercial 0.14 Parking for Existing Office Buildings 0 0.00 No Above Moderate - 2 151 MAIN ST 16738010 CRS Downtown Commercial 0.15 Commercial 1954 0.82 No Above Moderate 3 2 394 2ND ST 16741054 CD Downtown Commercial 0.16 Surface parking lot 0 0.01 Yes Above Moderate - 2 325 1ST ST 16740050 CD/R3 Downtown Commercial 0.16 Commercial or industrial building 1954 0.44 No Above Moderate 10 7 317 1ST ST 16740051 CD/R3 Downtown Commercial 0.16 Auto Service, Garages 1962 0.12 No Above Moderate 10 7 309 1ST ST 16740052 CD/R3 Downtown Commercial 0.16 Auto Service, Garages 1924 0.87 No Above Moderate 10 7 2ND ST 16740042 CD Downtown Commercial 0.16 Surface parking lot 0 0.00 No Above Moderate - 2 127 1ST ST 16739045 CD/R3 Downtown Commercial 0.16 Restaurants, Bars 1998 0.46 No Above Moderate 10 7 145 1ST ST 16739041 CD/R3 Downtown Commercial 0.16 Restaurants with surface parking 1950 0.56 No Above Moderate 10 7 151 1ST ST 16739040 CD/R3 Downtown Commercial 0.16 Store and surface parking 1974 0.67 No Above Moderate 10 7 129 1ST ST 16739044 CD/R3 Downtown Commercial 0.16 Individual Retail Stores 2008 0.85 No Above Moderate 10 7 PARKING LOT ONLY 16738050 CRS Public and Institutional 0.16 Surface parking lot 0 0.00 No Above Moderate 3 2 101 1ST ST 16739127 CD/R3 Downtown Commercial 0.17 Offices or commercial and surface parking 1980 0.07 No Above Moderate 11 7 ORANGE AV 17516020 R1-10 Single-Family, Small Lot (10 du/net acre) 0.18 Surface parking lot 0 0.18 No Above Moderate 1 1 4TH ST 16738049 CRS Public and Institutional 0.18 Surface parking lot 0 No Above Moderate 4 3 987 ACACIA AV 17001043 CN Thoroughfare Commercial 0.18 Commercial or Residential 1945 0.15 Yes Above Moderate 7 5 1031 N SAN ANTONIO RD 17001032 CN Thoroughfare Commercial 0.19 Restaurants, Bars and surface parking 1946 0.42 No Above Moderate 7 5 32 LOUCKS AV 16716018 CT Thoroughfare Commercial 0.20 Surface parking lot 1900 0.20 Yes Above Moderate 7 6 971 N SAN ANTONIO RD 17001027 CN Thoroughfare Commercial 0.21 Restaurant and surface parking 1953 0.15 No Above Moderate 8 6 SIERRA VENTURA DR 34224058 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.22 Undeveloped land 0 0.00 No Above Moderate 1 1 775 EDGE LN 18918102 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.23 Undeveloped land 1938 0.00 No Above Moderate 1 1 1347 RICHARDSON AV 31807008 R1-10 Public and Institutional 0.23 Undeveloped lot 0 0.00 Yes Above Moderate 1 1 942 ACACIA AV 17001051 CN Thoroughfare Commercial 0.23 Home or commercial building with surface parking 1950 0.40 Yes Above Moderate 9 6 994 SHERWOOD AV 17001086 CN Thoroughfare Commercial 0.23 Surface parking lot 1900 0.11 Yes Above Moderate 9 6 915 ST JOSEPH AV 34205032 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.24 Undeveloped land 0 0.00 No Above Moderate 1 1 270 LOS ALTOS CT 16736068 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.24 Undeveloped land 0 0.00 No Above Moderate 1 1 915 N SAN ANTONIO RD 17001025 CN Thoroughfare Commercial 0.24 Offices or commercial with surface parking 1930 0.57 No Above Moderate 9 7 625 PALM AV 17516088 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.24 Undeveloped land 0 0.00 No Above Moderate 1 1 1040 RUNNYMEAD CT 19344033 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.24 Undeveloped land 0 0.00 No Above Moderate 1 1 718 RONALD CT 18919003 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.25 Undeveloped land 0 0.00 No Above Moderate 1 1 608 UNIVERSITY TR 17514021 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.29 Undeveloped land 0 0.00 No Above Moderate 1 1 74 OAK ST 16736008 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.30 Undeveloped lot 0 0.00 No Above Moderate 1 1 416 2ND ST 16741072 CD Downtown Commercial 0.30 Restaurants, Bars 1950 0.46 No Above Moderate - 4 206
Agenda Item # 3.

B-30 | City of Los Altos Sites Inventory and Methodology Table B-10: Housing Sites (Under Existing Zoning, Continued) Address APN Zoning General Plan1 Parcel
Size Existing Use
Year
Built2 ILV3
5th
Cycle
Site4
Income
Category
Units
(Max)
Units
(Realistic,
Net)
2050 LONGDEN CL 34210088 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.30 Undeveloped lot 1900 0 No Above Moderate 1 1 899 MADONNA WY 33603030 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.30 Undeveloped land 0 0 No Above Moderate 1 1 330 2ND ST 16741046 CD Downtown Commercial 0.33 General Office and surface parking 1964 0.8 No Above Moderate - 5 1276 MONTCLAIRE WY 34209045 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.35 Undeveloped lot 1900 0 No Above Moderate 2 1 34 MT HAMILTON AV 16737034 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.36 Undeveloped lot 0 0 No Above Moderate 2 1 379 HAWTHORNE AV 17028058 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.45 Vacant flag lot 0 0 No Above Moderate 2 1 1491 MIRAMONTE AV 19341039 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.45 Vacant flag lot 0 0 No Above Moderate 2 1 275 3RD ST 16738065 CD Downtown Commercial 0.46 Bank and surface parking lot 1977 0.25 No Above Moderate - 6 420 W PORTOLA AV 16720050 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.46 Undeveloped lot 0 0 No Above Moderate 2 1 NASH RD 33602008 R1-H Single-Family, Large Lot (2 du/net acre) 0.48 Undeveloped lot 0 0 No Above Moderate 1 1 ALTA VISTA 16735076 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.72 Undeveloped lot 0 0 No Above Moderate 3 1 301 2ND ST 16740056 CD Downtown Commercial 0.80 Commercial building and surface parking lot 1963 0.14 No Above Moderate - 11 1ST ST 16740039 CD Downtown Commercial 1.06 Surface parking lot 0 No Above Moderate - 15 2ND ST 16740072 CD Downtown Commercial 1.07 Commercial Open Space Uses, Public Parking Lots 0 No Above Moderate - 15 ARBORETUM DR 34204078 R1-10 Public and Institutional 1.12 Undeveloped lot 0 0 Yes Above Moderate 5 1 1000 FREMONT AV 31801036 CN Neighborhood Commercial 1.56 Medical, Dental, Veterinary w. surface parking lot 1960 1.22 No Above Moderate 61 4 701 CATALINA WY 17012042 R1-10 Public and Institutional 1.70 Church w. surface parking lot 0 0.1 No Above Moderate 7 5 NO ADDRESS 16738002 CD Downtown Commercial 2.03 Surface parking lot 0 No Above Moderate - 28 2100 WOODS LN 34204089 R1-10 Public and Institutional 7.97 Potentially a school w. a playground related to a church 1971 0 No Above Moderate 35 10 323
1 The "Public and Institutional" General Plan designation allows housing consistent with the zoning district. 2 Zeroes indicate Year Built data unavailable.
3 Blanks or zeroes indicate that the property is owned by a governmental agency (e.g., City of Los Altos) and is not being assessed; no improvement or land value available. 4 Vacant parcels identified in the 5th Cycle Housing Element are assumed to have also been included in the 4th Cycle Housing Element.

Source: City of Los Altos, Santa Clara County Assessor, LWC Total - Above Moderate
207
Agenda Item # 3.

Sites Inventory and Methodology City of Los Altos | B-31 Table B-11: Rezone Sites
Address APN Zoning General Plan1 Parcel
Size Existing Use
Year
Built2 ILV
5th
Cycle
Site
Income
Category
Units
without
Rezoning
Units
with
Rezoning
Net Units Lower Moderate Above
Moderate
B ST 18915088 CN Neighborhood Commercial 0.09 Surface parking lot 1900 0.02 No Above Moderate 0 2 2 2 1564 MIRAMONTE AV 18915090 CN Neighborhood Commercial 0.11 Offices and Surface Parking lot 1954 0.78 No Above Moderate 0 3 3 3 1530 MIRAMONTE AV 18915042 CN Neighborhood Commercial 0.12 Office and surface parking 1947 0.45 No Above Moderate 0 3 3 3 991 DOLORES AV 18915026 CN Neighborhood Commercial 0.12 Undeveloped land 0 0.00 No Above Moderate 0 3 3 3 982 DOLORES AV 18915041 CN Neighborhood Commercial 0.12 Restaurant and surface parking lot 1950 0.23 No Above Moderate 0 3 3 3 1534 CAROB LN 18915038 CN Neighborhood Commercial 0.13 Office and surface parking 1950 0.40 No Above Moderate 0 4 4 4 979 FREMONT AV 18915059 CN Neighborhood Commercial 0.17 Commercial and surface parking 1956 0.40 No Above Moderate 0 5 5 5 949 FREMONT AV 18915063 CN Neighborhood Commercial 0.17 Offices or commercial and surface parking 1953 0.74 No Above Moderate 0 5 5 5 948 DOLORES AV 18915103 CN Neighborhood Commercial 0.21 Medical, Dental, Veterinary and surface parking 1950 0.21 No Above Moderate 0 6 6 6 981 FREMONT AV 18915102 CN Neighborhood Commercial 0.26 Offices or commercial with surface parking 1945 0.67 No Moderate 0 7 7 7 1188 LOS ALTOS AV 16710094 CT Thoroughfare Commercial 0.51 Commercial and surface parking 1956 1.15 No Lower 16 20 4 4 EL CAMINO REAL 17003084 CT Thoroughfare Commercial 0.54 Surface parking lot 0 0.00 Yes Lower 16 22 6 6 32 LOUCKS AV 16716018 CT Thoroughfare Commercial 0.20 Surface parking lot 1900 0.20 Yes Above Moderate 6 8 2 2 4940 EL CAMINO REAL 17003083 CT Thoroughfare Commercial 0.20 General Office 2015 3.39 No Above Moderate 0 8 8 8 5084 EL CAMINO REAL 17004065 CT Thoroughfare Commercial 0.31 Individual Retail Stores 1950 1.16 No Moderate 10 13 3 3 4844 EL CAMINO REAL 17002023 CT Thoroughfare Commercial 0.55 Retail store (candy shop) and surface parking
lot 0 1.57 Yes Lower 17 22 5 5
895 SHERWOOD AV 17001055 OA Thoroughfare Commercial 0.56 Multi-tenant (massage and fitness studio) and
surface parking lot 1973 0.81 No Lower 0 11 11 11
745 DISTEL DR 17004045 OA Thoroughfare Commercial 0.56
Multi-tenant (architecture and financial services
offices) 1963 0.00 No Lower 0 11 11 11
4500 EL CAMINO REAL 16712045 CT Thoroughfare Commercial 0.56 Multi-tenant (personal services - massage, hair
studio, fencing club) and surface parking lot 1976 1.73 No Lower 17 23 6 6 289 S SAN ANTONIO RD 17041086 OA Downtown Commercial 0.60 Multi-tenant (title company, financial services,
pool and spa) and surface parking lot 1977 2.11 No Lower 0 12 12 12 5000 EL CAMINO REAL 17004050 CT Thoroughfare Commercial 0.62 Carl’s Jr. and surface parking lot 1974 0.11 Yes Lower 19 25 6 6 4906 EL CAMINO REAL 17003077 CT Thoroughfare Commercial 0.69 Multi-tenant (medical, dental, and other offices)
and surface parking lot 1984 1.16 No Lower 21 28 7 7
901 FREMONT AV 18915106 CN Neighborhood Commercial 0.70 Bank and surface parking lot 1961 0.53 No Lower 0 19 19 19 399 S SAN ANTONIO RD 17040082 OA Downtown Commercial 0.76 Mortuary and surface parking lot 0 0.00 No Lower 0 15 15 15 4970 EL CAMINO REAL 17064120 CT Thoroughfare Commercial 0.78 Multi-tenant offices and surface parking lot 1985 0.17 No Lower 24 31 7 7 475 S SAN ANTONIO RD 17039053 OA Downtown Commercial 0.13 General Office 1973 0.73 No Above Moderate 0 3 3 3 129 FREMONT AV 17038062 OA Downtown Commercial 0.15 R-1 Converted to Office 1978 0.91 Yes Above Moderate 0 3 3 3 29 HAWTHORNE AV 17041037 OA Downtown Commercial 0.19 R-1 Converted to Office 1990 0.45 No Above Moderate 0 4 4 4 241 S SAN ANTONIO RD 17041065 OA Downtown Commercial 0.22 General Office 1953 0.49 No Above Moderate 0 4 4 4 195 S SAN ANTONIO RD 17041068 OA Downtown Commercial 0.24 General Office 1977 0.27 No Above Moderate 0 5 5 5 208
Agenda Item # 3.

B-32 | City of Los Altos Sites Inventory and Methodology Table B-11: Rezone Sites (Continued)
Address APN Zoning General Plan1 Parcel
Size Existing Use Year
Built2 ILV
5th
Cycle
Site
Income
Category
Units
without
Rezoning
Units with
Rezoning Net Units Lower Moderate Above Moderate
495 S SAN ANTONIO RD 17039058 OA Downtown Commercial 0.24 General Office 1970 0.46 No Above Moderate 0 5 5 5 301 S SAN ANTONIO RD 17040072 OA Downtown Commercial 0.26 General Office 1972 0.73 No Moderate 0 5 5 5 40 HAWTHORNE AV 17041014 OA Downtown Commercial 0.28 General Office 1978 0.63 No Moderate 0 6 6 6 778 ALTOS OAKS DR 18916006 OA Neighborhood Commercial 0.32 Medical, Dental, Veterinary 1957 0.56 No Moderate 0 6 6 6 762 ALTOS OAKS DR 18916005 OA Neighborhood Commercial 0.32 Medical, Dental, Veterinary 1959 0.55 No Moderate 0 6 6 6 747 ALTOS OAKS DR 18916017 OA Neighborhood Commercial 0.32 Medical, Dental, Veterinary 1960 0.16 No Moderate 0 6 6 6 802 ALTOS OAKS DR 18916008 OA Neighborhood Commercial 0.32 Medical, Dental, Veterinary 1958 0.25 No Moderate 0 6 6 6 746 ALTOS OAKS DR 18916004 OA Neighborhood Commercial 0.33 Medical, Dental, Veterinary 1959 0.08 No Moderate 0 7 7 7 811 ALTOS OAKS DR 18916013 OA Neighborhood Commercial 0.33 Medical, Dental, Veterinary 1961 0.47 No Moderate 0 7 7 7 763 ALTOS OAKS DR 18916016 OA Neighborhood Commercial 0.33 Medical, Dental, Veterinary 1962 0.68 No Moderate 0 7 7 7 795 ALTOS OAKS DR 18916014 OA Neighborhood Commercial 0.33 Medical, Dental, Veterinary 1960 0.40 No Moderate 0 7 7 7 826 ALTOS OAKS DR 18916009 OA Neighborhood Commercial 0.34 Medical, Dental, Veterinary 1958 0.30 No Moderate 0 7 7 7 731 ALTOS OAKS DR 18916018 OA Neighborhood Commercial 0.34 Medical, Dental, Veterinary 1957 0.79 No Moderate 0 7 7 7 827 ALTOS OAKS DR 18916012 OA Neighborhood Commercial 0.34 Medical, Dental, Veterinary 1960 0.18 No Moderate 0 7 7 7 369 S SAN ANTONIO RD 17040062 OA Downtown Commercial 0.38 General Office 1973 0.43 No Moderate 0 8 8 8 842 ALTOS OAKS DR 18916010 OA Neighborhood Commercial 0.40 Medical, Dental, Veterinary 1957 0.68 No Moderate 0 8 8 8 730 ALTOS OAKS DR 18916003 OA Neighborhood Commercial 0.42 Medical, Dental, Veterinary 1958 0.67 No Moderate 0 8 8 8 900 N SAN ANTONIO RD 16716022 OA Thoroughfare Commercial 0.49 General Office 1900 0.16 No Moderate 0 10 10 10 161 S SAN ANTONIO RD 17042028 OA Downtown Commercial 0.90 Multi-tenant (real estate offices) and surface
parking lot 1979 0.71 No Lower 0 18 18 18
4988 EL CAMINO REAL 17064119 CT Thoroughfare Commercial 0.94 Partially occupied multi-tenant (tax and accounting
services, other general offices) and surface
parking lot 1981 0.13 No Lower 29 38 9 9
211 S SAN ANTONIO RD 17041079 OA Downtown Commercial 0.99 Bank and surface parking lot 0 0.35 No Lower 0 20 20 20 4926 EL CAMINO REAL 17003073 CT Thoroughfare Commercial 1.05 Restaurant and surface parking lot 1968 0.05 No Lower 32 42 10 10 1000 FREMONT AV3 31801036 CN Neighborhood Commercial 1.56 Partially occupied multi-tenant commercial and
surface parking lot 1960 1.22 No Lower 4 43 39 43 -4
4546 X EL CAMINO REAL 16712047 CT Thoroughfare Commercial 1.69 Portion of Village Court; Partially occupied multitenant (commercial, including restaurants, general and medical offices, insurance and financial
institutions) and surface parking lot 1964 0.00 Yes Lower 51 67 16 16 851 FREMONT AV 18914081 OA Neighborhood Commercial 1.85 Partially occupied multi-tenant (medical offices)
and surface parking lot 1970 0.75 No Lower 0 37 37 37
655 MAGDALENA AV 33609023 PCF Public and Institutional 6.06 Los Altos United Methodist Church, preschool,
and surface parking lot 0 18.00 No Lower 0 15 15 15
625 MAGDALENA AV 33609018 PCF Public and Institutional 6.50 Bridges Community Church and surface parking
lot 0 12.31 No Lower 0 20 20 20
4546 EL CAMINO REAL4 16712042 R1-10 Thoroughfare Commercial 2.78 Portion of Village Court Shopping Center; Partially
occupied multi-tenant (general and medical
offices, commercial services and retail, including
massage, postal services, therapy) and surface
parking lot 1964 3.71 Yes Lower 0 111 111 111
600 408 128 64
1048 557 168 323
1648 965 296 387
1 The "Public and Institutional" General Plan designation allows housing consistent with the zoning district. 2 Zeroes indicate Year Built data unavailable.
3 Due to rezoning, income level would shift from above moderate to lower, resulting in a loss of above moderate capacity. 4 APN 16712042 would be rezoned to CT, and therefore would accommodate 111 lower income units (the R1-10 zoning district generally accommodates above moderate units).

Source: City of Los Altos, Santa Clara County Assessor, LWC Net New Capacity
Baseline Capacity
Total Capacity
209
Agenda Item # 3.

Housing Constraints City of Los Altos | C-1
Appendix C: Housing Constraints
Contents
Appendix C: Housing Constraints .............................................................. 1 Section C.1 Introduction and Summary .................................................................................... 2 C.1.1 Introduction............................................................................................................ 2 C.1.2 Summary ............................................................................................................... 2 Section C.2 Governmental Constraints..................................................................................... 4 C.2.1 Introduction............................................................................................................ 4 C.2.2 Land Use Controls................................................................................................. 4 C.2.3 Building and Housing Codes and Enforcement...................................................27 C.2.4 Permits and Procedures......................................................................................28 C.2.5 On and Off-site Improvements ............................................................................35 Section C.3 Non-Governmental Constraints...........................................................................36 C.3.1 Housing Supply/Conditions .................................................................................36 C.3.2 Development Costs .............................................................................................37 C.3.3 Availability of Financing.......................................................................................38 C.3.4 Market Constraints Summary..............................................................................39 C.3.5 Community Resistance to Housing .....................................................................39 Section C.4 Environmental and Infrastructure Constraints .....................................................40 C.4.1 Environmental Constraints ..................................................................................40 C.4.2 Infrastructure Constraints ....................................................................................40 210
Agenda Item # 3.

C-2 | City of Los Altos Housing Constraints
Section C.1 Introduction and Summary
C.1.1 Introduction
This Appendix covers local governmental, non-governmental, and environmental and infrastructure constraints to housing production in Los Altos.

C.1.2 Summary
City policies and regulations, such as the Zoning Code, and market factors outside of the City’s control affect the quantity and type of residential development that occur in Los Altos. The following summarizes key governmental, nongovernmental, and potential constraints to housing development as detailed in this Appendix.

Governmental Constraints
• Mixed-use developments in various zoning districts are limited to 30 feet or two stories.

While development projects often receive a height concession resulting from adherence to inclusionary requirements, this existing height limit still poses a potential constraint to residential unit production in mixed-use zones.
• Certain area or site-specific development standards are a constraint to housing development. These include a restrictive FAR standard for the Rancho Shopping Center and Woodland Plaza and a density cap in the Loyola Corners Specific Plan. However, the Loyola Corners Specific Plan density cap is not enforceable while the Housing Crisis Act is in effect (currently through 2030).
211
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Housing Constraints City of Los Altos | C-3
• Parking standards, including rates, parking minimums, lack of in-lieu options, and design requirements (e.g., size, layout, location, etc.), limit feasibility of residential and residential mixed-use projects.
• In most cases (except Accessory Dwelling Units and SB 9 Projects), multi-family residential and residential mixed-use projects, and single-family projects, are subject to Administrative Design Review (City staff review), Design Review Commission, Planning Commission, Complete Streets Commission, and City Council approval through conditional use permit and/or design review requirements, resulting in an extended review process. When required, final approval or concurrence by the City Council adds an additional review within the process. Furthermore, a third-party independent architect review is required for projects located in the Downtown. The review process should be streamlined with fewer review bodies and the consolidation of duties authorized by the City Council and contained within the Municipal Code.
• Subjective standards and findings, while limited in their applicability to housing developments due to State law, could result in uncertainty for developers and a longer application review process.
• The story pole requirement adds subjectivity and extends the review process of a proposed housing development, including for developments that propose building heights consistent with the Zoning Code or State law. Additionally, because of the increased capabilities of renderings and 3D Modeling, story poles often do not provide the visual understanding that can be achieved by project specific renderings and 3D Modeling which are also required for Commercial and Multi-Family Design Review Submittals. • The City does not have a reasonable accommodation process to address requests from persons with disabilities to waive Zoning Code standards to ensure homes are accessible for the mobility impaired.
• Certain zoning provisions will need to be updated to comply with State law (e.g., allow Low Barrier Navigation Centers where residential multi-family uses are allowed and in mixed-use zones (AB 101), allow qualifying supportive housing by-right where residential is allowed (AB 2162), increase density bonus up to 50 percent (AB 2345), etc.).

Nongovernmental Constraints
• Economic conditions in Los Altos reflect a competitive housing market for both for-sale and rental housing.
• Los Altos is generally built out, so future housing development will be constrained by existing development or require demolishing existing structures, improvements, and uses.

The lack of available vacant land may constrain housing production due to the increased costs associated with redevelopment.
212
Agenda Item # 3.

C-4 | City of Los Altos Housing Constraints
Section C.2 Governmental Constraints
C.2.1 Introduction
Local policies and regulations can affect the quantity and type of residential development. Since governmental actions can constrain the development and the affordability of housing, State law requires the housing element to "address and, where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing" (Government Code §65583(c)(3)).

As with other cities, Los Altos’ development standards and requirements are intended to protect the long-term health, safety, and welfare of the community. The City charges fees and has various procedures and regulations developers are required to follow. There are many locally imposed land use and development requirements that can affect the type, appearance, and cost of housing built in Los Altos. These local requirements include zoning standards, development processing procedures, development fees, and subdivision design standards. Other building and design requirements imposed by Los Altos follow State laws, the California Building Code, Subdivision Map Act, energy conservation requirements, etc. In addition to a review of these policies and regulations, an analysis of the governmental constraints on housing production for persons with disabilities is included in this Section.

C.2.2 Land Use Controls
This Section provides an overview of the City’s land use controls and their relation to the City’s housing supply.

General Plan Land Use Designations
The City adopted the Los Altos General Plan 2002 – 2020 in 2002. The Land Use Element of the General Plan directs the location and form of future development in the city.

The General Plan includes 11 land use designations that allow residential development at a variety of densities (see Table C-1). Density is used for residential land use designations and is described in terms of dwelling units per net acre of land (du/acre). For mixed use designations, intensity is used, expressed as the floor area ratio (FAR) of total gross floor area of all buildings on a lot and the total land area of that lot (e.g., a single-story building that covers half of the lot would have an FAR of 0.50:1).

Additionally, the General Plan requires “development projects within the Low and Medium Density Multi-Family and Senior Housing designations to be developed at 75 to 100 percent of the 213
Agenda Item # 3.

Housing Constraints City of Los Altos | C-5
maximum density permitted by the associated zoning unless the City Council determines that a less dense project is in the best interest of the community.”1 Table C-1: City General Plan Residential Land Use Designations General Plan Designation Maximum
Density/Intensity Description
Single-Family Large Lot 2.0 Detached single-family homes on large lots.

Single-Family Medium Lot 4.0 Detached single-family homes.

Single-Family Small Lot 10.0 Detached single-family home on smaller lots.

Low Density Multi-Family 15.0 Detached and attached single-family homes, condominiums, duplexes, and apartments.

Senior Housing 28.0 Detached and attached single-family homes, condominiums, duplexes, and apartments for seniors
Medium Density Multi-Family 38.0 Detached and attached single-family homes, condominiums, and apartments.

Neighborhood Commercial
Retail uses serving the needs of nearby neighborhoods. Specified areas may also include general business, medical, or professional office uses. Residential development is allowed by right at Foothill Plaza.

Foothill Plaza 2.0:1 w/
residential
All other locations 0.5:1 w/
residential
Downtown Commercial General retail uses and service, commercial recreational, cultural, and office uses that serve local residents. Higher density residential uses that enhance the village character of the Downtown are also allowed by right in the Core and Periphery areas above the ground floor. Such uses may be allowed elsewhere, subject to Use Permit approval.

Downtown Core 2.0:1 w/
residential
Downtown Periphery 2.0:1 w/
residential
Thoroughfare Commercial Retail, service, and small office uses that typically rely on vehicle traffic and serve the city and/or regional market. Permits mixed use development and affordable residential opportunities along El Camino Real Corridor.

El Camino Real Corridor 1.5:1 w/ mixeduse
Public and Institutional 0.6:1
Government, institutional, academic, group residence, church, community service uses, easements, rights-of-way, facilities of public and private utilities, and parking.

Planned Community Varies
Various single-family and residential densities and housing types, as well as community facilities, private schools, recreational areas, religious facilities, education or philanthropic institutions, public utilities and services, hospitals, and open space areas.

Source: City of Los Altos General Plan (2002)
1 Los Altos General Plan, Land Use Element, p.8
214
Agenda Item # 3.

C-6 | City of Los Altos Housing Constraints
Specific Plans
The City has adopted specific plans to guide the development in certain areas of the city. These specific plans provide unique standards based on special considerations within the planning areas.

Loyola Corners Specific Plan
The Loyola Corners Specific Plan was developed in 1990 and updated in 2017. It is a document that identifies potential growth, vehicle circulation and parking, building design standards and an implementation schedule for area enhancements. The intent of the update was to simplify the plan and clarify the policies and standards, clarify implementation of the plan, and remove outdated and unnecessary requirements. The updates were adopted by the City Council on October 10, 2017.

The Loyola Corners Specific Plan covers approximately 17 acres located along Foothill Expressway in the southwest portion of Los Altos. The commercial portion is within the Commercial Neighborhood (CN) District but subject to additional requirements of the Loyola Corners Specific Plan Zone District (LC/SPZ) (Municipal Code Chapter 14.42), primarily applicable to nonresidential uses. However, the 2017 amendments limit residential development to an increase of 20 additional dwelling units; such units are required to be between 1,500 and 8,000 square feet (Resolution 2017-41). These limitations on unit size and density do not exist elsewhere in the city. The Housing Crisis Act of 2019 (Senate Bill 330, Government Code §66300) prohibits jurisdictions from implementing any provision that limits the number of housing unit approvals or permits that can be issued or acts as a cap on the number of housing units that can be approved or constructed over any period. These provisions of the Housing Crisis Act went into effect on January 1, 2020, and remain in effect until January 1, 20302. While the Housing Crisis Act preempts and precludes the City’s enforcement of the Loyola Corners Specific Plan density cap while the Housing Crisis Act is in effect, the City will amend the Loyola Corners Specific Plan’s density cap and other standards to facilitate housing in this area (Program 1.E).

Sherwood Gateway Specific Plan
The Sherwood Gateway Specific Plan is designed to help accomplish two goals: economic revitalization of the City's Sherwood Gateway; and preservation of the surrounding neighborhood’s residential character. The plan was developed in 1999 and updated in 2008. This Specific Plan area contains both commercial and residential uses and is located southwest of El Camino Real, centered primarily around San Antonio Road and Sherwood Avenue. A significant focus of the Specific Plan is urban design, circulation, and aesthetic improvements; standards in the underlying zones apply.
2 The Housing Crisis Act (HCA), originally set to expire in 2025, was extended to 2030 by SB 8. SB 8 further extended specific provisions of the HCA to 2034 (e.g., prohibition of conducting more than five hearing and vesting rights for housing projects that submit a qualifying preliminary application). 215
Agenda Item # 3.

Housing Constraints City of Los Altos | C-7
Downtown Vision Plan
The City prepared a Downtown Vision Plan (Vision Plan) to help shape the future of Downtown Los Altos, which was approved in 2018. The purpose of the Vision Plan is to provide the community with a vision for the future of the Downtown triangle to guide growth and development over the next 20 years. This Vision Plan acts as the guiding document for future development of the Downtown, maintaining the community’s history, values, and desired intensity of development, while also allowing for incremental change intended to facilitate a unique, vibrant village that exemplifies the exceptional character and qualities of Los Altos. The adopting City Council in 2018 noted that as with all land use decisions modifications to existing development standards will undergo the standard community engagement process prior to adoption of new regulations.

Zoning Districts
The Zoning Code is Title 14 of the Los Altos Municipal Code. The Zoning Code3, Zoning Map4, specific plans5, and application forms6 that contain compiled lists of information required for a development project are available on the City’s website consistent with transparency requirements (Government Code §65940.1(a)(1)). This Section analyzes the Zoning Code and the districts which allow residential development, including commercial districts which allow multifamily residential development. Table C-2 lists the districts that allow residential development with a description of each.
3 City of Los Altos, Municipal Code, https://www.losaltosca.gov/cityclerk/page/los-altos-municipal-code 4 City of Los Altos, Zoning Map, https://www.losaltosca.gov/sites/default/files/fileattachments/community_development/page/39021/los_altoszoning_final_w_labels-24x36-20181026.pdf 5 City of Los Altos, Adopted Plans, https://www.losaltosca.gov/development-services/page/adopted-plans 6 City of Los Altos, Forms and Handouts, https://www.losaltosca.gov/development-services/page/forms-and-handouts0 216
Agenda Item # 3.

C-8 | City of Los Altos Housing Constraints
Table C-2: Zoning Districts that Allow Residential Development Zoning District Description
Single-Family (R1-40) Provide for single-family detached homes on lots with a minimum site area of 40,000 square feet.

Single-Family (R1-20) Provide for single-family detached homes on lots with a minimum site area of 20,000 square feet.

Single-Family (R1-H) Provide for single-family detached homes on lots with a minimum site area of 20,000 square feet and larger rear yard setbacks than the R1-20 District.

Single-Family (R1-10) Provide for single-family detached homes on lots with a minimum site area of 10,000 square feet.

Multiple-Family (R3-5) Provide for apartments and two-family units such that there is not more than one dwelling unit per 5,000 square feet of lot area.

Multiple-Family (R3-4.5) Retain and enhance the character of the Stevens Place and Marshall Court area as a two-family dwelling unit neighborhood.

Multiple-Family (R3-3) Provide for apartments and two-family units such that there is not more than one dwelling unit per 3,000 square feet of lot area.

Multiple-Family (R3-1.8) Provide for multi-family residential units such that there is not more than one dwelling unit per 1,800 square feet of lot area.

Multiple-Family (R3-1)
Provide for multi-family residential units such that, after reaching 10 units on the first 14,200 square feet, there is not more than one dwelling unit for each additional 1,000 square feet.

Commercial Thoroughfare (CT)
Encourage a variety of mixed-use residential developments, including affordable housing development, that promote the economic and commercial success of Los Altos.

Commercial Neighborhood (CN) Allow for a mix of pedestrian-scale commercial and residential uses while retaining and enhancing the neighborhood convenient character.

Commercial Retail Sales (CRS)
Retain and enhance the Downtown Los Altos village atmosphere and provide for a mix of uses emphasizing ground floor retail businesses and services with housing above.

Commercial Downtown (CD)
Provide for a full range of uses appropriate to Downtown while preserving and improving the character of the area immediately surrounding the existing Downtown pedestrian district.

Commercial Downtown/MultipleFamily (CD/R3)Provide for a full range of retail, office, and service uses appropriate to Downtown while retaining and enhancing its village atmosphere.

Commercial Retail Sales/Office
(CRS/OAD)
Provide for a full range of retail, office, and service uses appropriate to Downtown while encouraging pedestrian-scale design.

Public and Community
Facilities/Single-Family (PCF/R1-
10)
Provide for the construction, use, and occupancy of government, public utility, and educational buildings, as well as single-family detached homes on lots with a minimum site area of 10,000 square feet.

Source: City of Los Altos Municipal Code, Title 14 (Zoning) 217
Agenda Item # 3.

Housing Constraints City of Los Altos | C-9
Development Standards
Development standards can constrain new residential development if the standards make it economically infeasible or physically impractical to develop a particular lot, or there are not suitable parcels which meet the development criteria for building form, massing, height, and density in a particular district.

Through its Zoning Code, the City enforces minimum site development standards for new residential uses. Table C-3 summarizes the basic standards for the City’s districts that allow residential development.
218
Agenda Item # 3.

C-10 | City of Los Altos Housing Constraints
Table C-3: Development Standards in Zones that Allow Residential Development Zoning
District
Min. Site
Area
(sq.ft.)
Max. Density
(units/acre)
Max. Site
Coverage
Max.

Structure
Height
Min. Setbacks (ft.)
FAR
Front Exterior Side Rear
R1-40
40,000
Corner:
41,000

1.1 20% 27 1
Flag: 20 50 30 50
<11,000
sq.ft.:
35%
>11,000
sq.ft.:
3,850
sq.ft. +
10% net
lot area
minus
11,000
sq.ft.

R1-20
20,000
Corner:
21,000

2.2 25% 27 1
Flag: 20 30 25 35
R1-H
20,000
Corner:
21,000

2.2 25% 27 1
Flag: 20 30 25 50
R1-10
10,000
Corner:
11,000
Flag:
15,000

4.4 35% 1-story
30% 2-story
27 1
Flag: 20 25 20 25
R3-5 43,560 (1
acre) 8.7 30%
30 or 2-
story,
whichever
is less
Within
100 ft. of
R1-10: 15
40 15
Corner/abutting R1-10:
25 30
Abutting R1-10: 40 –
R3-4.5 9,000 9.7
40% of total
gross site area
where 1-story
development
does not exceed
20 ft.
20 2-story:
27 20-30
Abutting R1-10: 20
See R1
standard
R3-3 21,000 14.5 30%
30 or 2-
story,
whichever
40 15
Corner/abutting R1-10:
25 30
Abutting R1-10: 40 –
219
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Housing Constraints City of Los Altos | C-11
Table C-3: Development Standards in Zones that Allow Residential Development Zoning
District
Min. Site
Area
(sq.ft.)
Max. Density
(units/acre)
Max. Site
Coverage
Max.

Structure
Height
Min. Setbacks (ft.)
FAR
Front Exterior Side Rear
R3-1.8
Vacant:
7,100
Existing
structures:
14,000

24.2 40%
is less
Within
100 ft. of
R1-10: 15 20

7.5 Corner: 15
Abutting R1-10: 25
30 Abutting R1-10: 40 –
R3-1 7,100 38.0 40%
35 or 3-
story,
whichever
is less
Within
100 ft. of
R1-10: 30
20 7.5
Corner: 15
+ 5 for each story above
1st or 10 ft. in height
25 –
CT 20,000 38.0 – 45 25
4 Across the street from an
R district: 30
Abutting an R district,
portion of structure ≤30
ft. in height: 40
Abutting an R district,
portion of structure >30
ft. in height: 100
0 Across the street from an R district, ≤30 ft.
in height: 30
Across the street from an R district, >30 ft.
in height: 70
Abutting an R district, ≤30 ft.: 40
Abutting an R district, >30 ft. in height: 100
–
CN – – – 30
If across
a street
from an
R district:
40 0
Across the street from an
R district: 40
Abutting an R district: 50
20 None;
35%:

Woodland
Plaza,
Rancho
Shopping
Center
CRS – – – 30 0 – 0 –
220
Agenda Item # 3.

C-12 | City of Los Altos Housing Constraints
Table C-3: Development Standards in Zones that Allow Residential Development Zoning
District
Min. Site
Area
(sq.ft.)
Max. Density
(units/acre)
Max. Site
Coverage
Max.

Structure
Height
Min. Setbacks (ft.)
FAR
Front Exterior Side Rear
Abutting a public parking plaza: 2
Abutting an alley: 10
CD – – – 30 2
0 Abutting a public
street/parking plaza: 2
0 Structures >15 ft. in height: 15
Abutting a public street/parking plaza: 2
Abutting a public street/alley: 10
–
CD/R3 – – –
Entirely
res.
project:
35 MU
projects:
30 Entirely
res.
projects:
10 MU
projects:
2 0
Abutting a public
street/parking plaza: 2
Entirely res. projects: 10
MU projects: 2 –
CRS/OAD – – – 30 0
0 Abutting a public
street/parking plaza: 2
0 Abutting a public parking plaza: 2
Abutting an alley: 10
–
“ – “ indicates a standard which was not specified in the Municipal Code. 1 The maximum structure height may be limited to 20 feet or one story if subject to the Single-Story Single-Family Overlay District (R1-S).

Source: City of Los Altos Municipal Code, Title 14 (Zoning) 221
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In addition to the residential and mixed-use districts described above, the City also has a Planned Community District (PC) and a Planned Unit Development (PUD) District. The PC District is intended to provide the long-term development of properties of at least 20 acres and requires approval of a master plan. The PUD District is intended to provide options for developments which confirm with the objectives of the Zoning Code but deviate in certain respects from the zoning standards. The PUD District is divided into five subdistricts, all of which allow residential uses.

Table C-4, below, provides a summary description of development standards for these subdistricts.

Table C-4: Development Standards for Planned Unit Developments (PUDs)1 PUD/RI
Cluster PUD/R PUD/OA PUD/C PUD/SC
Permitted
Residential
Uses
Singlefamily
dwellings
All permitted
uses in R1-
10/R3-5
All permitted
uses in R1-10,
R3-5, OA-1
All permitted uses in

CN, CD, CRS, CT,
OA-1, R1-10, R3-5
Housing and
medical care
facilities for senior
citizens
Site Area R1-10: 1
acre
R1-H/R1-
20: 2 acres
R1-40: 5
acres
5 acres
Frontage on Chester Circle: 3 acres –
Standards Development standards shall be no less than the maximum prescribed by the regulations for the zoning district which is comparable to the use proposed 1 All properties in the PC and PUD districts are built out.

Source: City of Los Altos Municipal Code, Title 14 (Zoning) Development Standards Analysis
The basic development standards allow a moderate amount of density and intensity for residential development. The large-lot, single-family districts (R1-20, R1-H, and R1-40) are typically found in hillside areas just outside City limits (but within its sphere of influence) where steep slopes and other environmental constraints dictate larger lots, greater setbacks, and increased open space.

Opportunities for denser housing are primarily located adjacent to the Downtown core and along El Camino Real on the City’s northern border with Mountain View and Palo Alto.

Downtown
The CD/R3 District allows maximum structure heights comparable to the R3-1 and R3-1.8 districts and smaller setbacks. For mixed-use projects in the CD/R3 District, maximum structure heights are limited to 30 feet, slightly lower than entirely residential projects (35 feet), but with reduced setbacks comparable to adjacent commercial districts. This 30-foot height limitation is also applicable to other mixed-use districts (i.e., CD, CRS, CN).

Height limits in CD/R3 and CD districts were reduced in 2016 by Ordinance No. 2016-428. This Ordinance reduced allowed building heights from 45 feet to 30 feet for commercial or mixed-use 222
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structures and reduced entirely residential building heights in the CD/R3 district from 45 feet to 35 feet. The passage of this Ordinance was contentious, with disagreement between the City’s Downtown Buildings Committee (DBC), which recommended reducing height limits, and the Planning and Transportation Commission, which did not recommend reducing height limits. The City Council eventually voted 3-2 to reduce height limits.

The 30-foot height limit for mixed-use projects is a potential constraint to housing development, as when it is combined with the ground floor minimum interior ceiling height of 12 feet, vertical mixed-use projects are limited to only two stories. However, projects often receive a height concession resulting from adherence to the City’s inclusionary housing requirements and as allowed through on-menu concessions (see later sections for Inclusionary Housing and Density Bonus and Incentives for Affordable Housing).

Height limits in all Downtown districts (i.e., CD/R3, R3-1, CD, CRS, and CRS/OAD) are also addressed by the 2018 Downtown Vision Plan (see “Specific Plans” above). Though the Downtown Vision Plan is a guiding document for the Downtown area, it explicitly discusses the community division over the topic of building heights along certain Downtown streets. In fact, community feedback recorded during deliberation over Ordinance No. 2016-428 also included comments to not reduce height limits until the visioning process (ongoing at the time) had concluded. Though “Downtown Districts” defined in the Downtown Vision Plan do not exactly align with Zoning Code districts, the Vision Plan recommends heights closer to those implemented before the 2016 Ordinance (e.g., maximum of 45 feet for mixed-use development on certain parcels in the CD/R3, CRS, and CD districts). To facilitate housing development Downtown, particularly in a mixed-use configuration, Program 3.B would result in amending the Zoning Code to implement an increase to building heights as recommended in the Downtown Vision Plan.

Commercial Neighborhood District
The 30-foot height limit also applies in the CN District. While there is no minimum ground floor ceiling height requirement in this District, only mixed-use projects are allowed, essentially limiting vertical mixed-use projects to only two stories7. As discussed above, although projects often receive a height concession, this height limit is a potential constraint to the development of residential mixed-use projects and would be evaluated and addressed through Program 3.B.

Specific floor area ratio (FAR) limitations apply to two areas in the CN District: Rancho Shopping Center and Woodland Plaza. In these two areas, the maximum FAR is 0.35, while no other properties in the CN District have an FAR limit. These two areas are currently occupied by single story commercial development with substantial surface parking. This FAR standard is a constraint on the development of housing in these areas and would be removed under Program 3.C. 7 The Loyola Corners Specific Plan, which includes properties within the CN District, identifies a maximum height of 30 feet and two stories (Resolution 2017-41).
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Commercial Thoroughfare District
The Commercial Thoroughfare (CT) District is located along El Camino Real with a maximum density of 38 units per acre and a maximum height of 45 feet. Development trends in this area are showing much higher densities and heights being built (see Appendix B, Table B-5).

Furthermore, other mixed-use districts do not have maximum density standards, and heights across El Camino Real in Mountain View are up to 10 stories (i.e., Avalon Towers on the Peninsula). Therefore, to continue to facilitate housing in the CT District, the City will increase or remove the density maximum and evaluate increasing the height allowed in the CT District to ensure higher densities can be accommodated (Program 1.B).

Multi-Family Residential Districts
The multi-family residential zoning districts (R3) contain relatively restrictive standards, including maximum allowed site coverage (e.g., 30 percent of site area in some zoning districts) and building height (e.g., 20 feet or two stories in some zoning districts). These standards, particularly when considered cumulatively with parking requirements, create a challenge for projects to achieve maximum allowed density. The standards in the R3 zoning districts will be modified to facilitate higher density housing (Program 3.N). Parking standards will also be modified as described under Parking Requirements, below.

Parking Requirements
Required parking rates for residential uses in districts that allow residential are shown in Table C5.

Table C-5: Residential Parking Rates
Zoning District Required Spaces Per Dwelling Unit
R1-10, R1-20, R1-H, R1-40 2 spaces (1 covered)
R3-3, R3-4.5, R3-5 2 spaces (1 covered)
R3-1 1
<2 rooms in addition to kitchens/bathrooms 1.5 spaces (underground) 2+ rooms in addition to kitchens/bathrooms 2 spaces (underground) Visitor parking 1 space per 4 dwelling units
R3-1.8
<2 rooms in addition to kitchens/bathrooms 1.5 spaces (1 covered) 2+ rooms in addition to kitchens/bathrooms 2 spaces (1 covered) Visitor parking 1 space per 4 dwelling units
CN, CD, CD/R3, CRS/OAD, CRS, CT 2
<2 rooms in addition to kitchens/bathrooms 1.5 spaces
2+ rooms in addition to kitchens/bathrooms 2 spaces
Visitor parking 3 1 space per 4 dwelling units
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Table C-5: Residential Parking Rates
Zoning District Required Spaces Per Dwelling Unit
Emergency shelters 4 0.25 spaces per bed, 0.2 bike spaces per bed, 1 space per family room, 1 space per employee on duty
1 Projects with a site area less than 30,000 sq. ft. may provide up to 50% of the required parking above-ground. The proposed parking plan shall be subject to the approval of the Commission and Council. 2 For those properties which participated in a public parking district, no parking shall be required for the net square footage which does not exceed 100% of the lot area.
3 Mixed use projects may substitute nonresidential parking spaces for visitor use in-lieu of providing dedicated visitor parking spaces, subject to approval of the Commission and Council. 4 Only permitted in the CT and PUD/C zoning districts.

Source: City of Los Altos Municipal Code, Ch. 14.74 (Off-Street Parking and Loading) Parking Requirements Analysis
The City provides a limited alternative to satisfying minimum parking requirements in Section

14.74.170 (Common Parking Facilities). Either through private agreement or by utilizing a public assessment district, a common parking facility may be used to satisfy the required area or number of spaces for each permitted use. The total number of spaces allocated cannot be less than the sum of the individual requirements and must be within 300 feet of the site of the permitted use(s).

Planning and Transportation Commission approval is required for a common parking facility.

Public comments included that parking rates were a constraint to the development of housing, particularly in the Downtown area where lot sizes are smaller. To address parking constraints, a study should be conducted to identify parking management strategies for Downtown and assess and modify parking requirements citywide (Program 3.A). That assessment should evaluate reducing minimum required parking rates, offering higher rates of reduced parking for properties participating in a public parking district, establishing lower parking rates for small units (e.g., studios), providing more flexibility for underground parking, and other alternatives (e.g., in-lieu fees). Additionally, the City will assess parking requirements generally, including the required parking design dimensions (e.g., parking stall and lane dimensions), and modify those requirements where appropriate to reflect best practices and innovations in parking design.

Furthermore, the City is working on a vehicle miles traveled policy and transportation demand management plan to promote efficient land use planning and facilitate alternative modes of transportation (Program 4.J).

Provisions for a Variety of Housing
The City has adopted provisions in its Zoning Code that facilitate a range of residential development types. Table C-6 provides a list of housing types and the zoning districts in which they are permitted, require a conditional use permit, or are not permitted. 225
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Table C-6: House Types Permitted by Zoning District
Housing Type
Zoning Districts 1
R1-10 R1-H R1-20 R1-40 R3-4.5 R3-5 R3-3 R3-1.8 R3-1 CN CD CRS CT CD/R3 CRS/OAD PC PCF PCF/R1- 10 Single-family
residences P P P P – – – – – – – – – P – P – P
Accessory dwelling
units (ADUs) 2 P P P P P P P P P P P P P P P P P P
Two-family
dwelling units – – – – P – – – – – – – – P – – – –
Multi-family
residential dwelling
units
– – – – – P P P P – – – C P – P 3 – –
Housing located
above the ground
floor
– – – – – – – – – C C C – – C – – –
Mixed-use projects – – – – – – – – – C – – C – – – – –
Emergency
shelters – – – – – – – – – – – – P 4 – – – – –
Single-room
occupancy
housing
– – – – – – – – – – – – C – – – – –
Hospitals,
convalescent
hospitals,
residential care
homes, and
nursing homes
– – – – – – – – – – – – – – – P C C
Manufactured
home – – – – – – – – – – – – – P – – – –
P = Permitted
C = Conditionally Permitted
– = Not Permitted/Not Specified
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Table C-6: House Types Permitted by Zoning District
Housing Type
Zoning Districts 1
R1-10 R1-H R1-20 R1-40 R3-4.5 R3-5 R3-3 R3-1.8 R3-1 CN CD CRS CT CD/R3 CRS/OAD PC PCF PCF/R1- 10 1 See Table C-4 for allowed uses in PUD zoning districts. 2 Pursuant to Chapter 14.14 (Accessory Dwelling Units), Section 14.14.030 (Location Permitted), ADUs may be permitted on parcels zoned for multi-family or single-family dwellings. 3 Specific to senior citizen housing in the PC District. 4 Also permitted in the PUD/C zoning district, where all uses permitted in the CN, CD, CRS, CT, OA-1, R1-10, and R3-5 districts are allowed. See Section 14.62.040 (Permitted Uses (PUD)) and Table C-4 above.

Source: City of Los Altos, Title 14 (Zoning)
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Multi-Family
Multi-family dwellings are permitted in the R3-4.5, R3-5, R3-3, R3-1.8, R3-1, and CD/R3 zoning districts on properties that meet the site development standards described in Table C-3.

Standalone multi-family dwellings are allowed with a conditional use permit in the CT District, and residential mixed-use is allowed with a conditional use permit in the CN, CD, CRS, CT, and CRS/OAD zoning districts. To facilitate housing, the City will amend the Zoning Code to allow the following as permitted uses (Program 3.F):
• Residential mixed-use in the CN, CD, CRS, CT, and CRS/OAD districts; and • Multi-family in appropriate areas of mixed-use districts (e.g., not on the ground floor, etc.).

The City has a condominium conversion ordinance (Chapter 14.26) for the purposes of maintaining an adequate supply of rental housing and reducing the displacement of long-term residents, particularly senior citizens. Chapter 14.26 prohibits existing apartments from being converted into condominiums unless the number of apartment units being offered for rent or lease in the city is equal to or less than five percent of the total number of apartment units in the city.

As noted in Appendix A, Needs Assessment, the rental vacancy rate in Los Altos remains below five percent (3.1 percent).

Accessory Dwelling Units (ADUs)
Zoning Code Chapter 14.14 (Accessory Dwelling Units) provides supplemental standards for ADUs and Junior ADUs. These standards were adopted October 27, 2020 to reflect current State law. The City prohibits the use of ADUs as short-term rentals and, as indicated in State law, requires a rental period of greater than 30 days. A restrictive covenant is required to be recorded against a lot containing an ADU to address the restrictions and regulations established in Chapter

14.14. Additionally, while the Code identifies that the City will conduct annual ADU rental income surveys whereby each property owner may voluntarily share the rental income for the unit for the City to use in its annual progress reports (Section 14.14.090), this has not been conducted; the City will conduct these surveys consistent with Program 2.E.

The City complies with State law for processing times related to ADUs (i.e., within 60 days or less). On its website, the City provides an informative four-page handout describing ADU standards, a zoning clearance application/checklist, and a link to an “ADU calculator” that helps homeowners estimate the cost of converting part of their home into (or constructing) an ADU.

However, public comments identified that the ADU process should continue to be streamlined, and Program 2.D would result in continued facilitation and streamlining of ADUs.

Emergency Shelters/Low Barrier Navigation Centers
The Zoning Code defines “emergency shelter” as housing with minimal supportive services for homeless persons, pursuant to Health and Safety Code §50801, that is limited to occupancy of six months or less by a homeless person. No individual or household may be denied emergency shelter because of an inability to pay.
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Emergency shelters are allowed by right in the CT and PUD/C zoning districts provided they meet the site development standards in Table C-3 (if in the CT District), Table C-4 (if in the PUD/C District), and the parking requirements in Table C-5. No additional standards are imposed, nor does the City apply any of the objective development/management standards allowed by State law (e.g., maximum number of beds, proximity to other shelters, etc.).

Although emergency shelters are not currently exempt from design review (see Section C.2.4), the City’s adoption of objective design standards in 2021 (see Zoning Code Section 14.66.280) and the implementation of Program 3.H will ensure emergency shelters are permitted without any discretionary actions or exceptions.

The CT and PUD/C zoning districts are located on the northern edge of the City along El Camino Real (i.e., the northernmost portion of Los Altos), and accessible by San Antonio Road. The above-described areas are serviced by the Santa Clara Valley Transportation Authority, which provides bus service throughout Santa Clara County, including Los Altos. These areas have access to Bus Routes 22, 40, and 522, which operate throughout the day from morning until night, including weekends and holidays. These routes include multiple bus stops, particularly along El Camino Real and San Antonio Road, and provide access to schools, churches, retail, groceries, and medical care.

Twelve parcels in the CT District are included in the sites inventory as underutilized/nonvacant sites for housing development over the planning period (see Appendix B, Sites Inventory & Methodology). One of these parcels is also zoned PUD/C with an underlying zoning of CT (APN 16712047, 4546 El Camino Real). These parcels comprise approximately 8.5 acres of largely surface parking and commercial buildings, with individual parcels ranging from 0.20 acres (13,500 square feet) to 1.69 acres and a median parcel size of 0.59 acres. As described in Section B.2.5 (Suitability of Nonvacant Sites) in Appendix B, these parcels are underutilized with primarily surface parking and commercial buildings where the existing uses are of lower economic viability and buildings are largely single story, providing opportunity for additional development, reuse, and/or redevelopment.

According to the 2019 Point-in-Time (PIT) count, there were an estimated 76 persons experiencing homelessness in Los Altos. Conservatively assuming 600 square feet per bed, 45,600 square feet of floor area would be required to house 76 people experiencing homelessness. The CT District has no maximum site coverage or FAR but allows buildings up to 45 feet in height. The aforementioned housing sites in the CT District total approximately 8.5 acres (i.e., 370,000 square feet) and have sufficient capacity to accommodate the square footage for an emergency shelter(s) housing up to 616 people.

Government Code §65583(a)(4)(A) requires emergency shelters to provide sufficient parking to accommodate all staff working in the shelter, provided the standards do not require more parking than other residential or commercial uses in the same zone. As shown in Table C-5, the City requires emergency shelters to provide off-street parking at the rate of 0.25 parking spaces per bed, 0.2 bike spaces per bed, one parking space per family room, and one parking space per 229
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employee on duty. These requirements are comparable to or less than those required of other residential uses in the CT District, as shown in Section 17.74.080 (Residential Uses in CN, CD, CD/R3, CRS/OAD, CRS and CT Districts). Under Program 3.M, the City will amend the number of parking spaces required to be consistent with State law (i.e., only require the parking necessary for emergency shelter staff).

Additionally, the Zoning Code does not address low barrier navigation centers (LBNCs), defined as Housing First, low-barrier, service enriched shelters focused on moving people into permanent housing that provide temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing (Government Code §65660). State law requires LBNCs to be permitted by-right in areas zoned for mixed-use and nonresidential zones permitting multi-family uses provided they comply with the provisions establish by AB 101 (Government Code §65662) (e.g., CD/R3, CN, CD, CRS, CT, CRS-OAD districts). Program 4.C requires the Zoning Code to be amended to allow LBNCs in the appropriate zones consistent with AB 101.

Transitional Housing and Supportive Housing
In addition to emergency shelters, transitional housing is a type of housing used to further facilitate the movement of homeless individuals and families to permanent housing. It can serve those who are transitioning from rehabilitation or other types of temporary living situations (e.g., domestic violence shelters, group homes, etc.). Transitional housing can take several forms, including group quarters with beds, single-family homes, and multi-family apartments, and typically offers case management and support services to return people to independent living (usually between six and 24 months). Transitional housing is defined in Government Code §65582(j) as buildings configured as rental housing development but operated under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient at some predetermined future point in time, which shall be no less than six months.

Supportive housing is defined in Government Code §65582(g) as housing with no limit on length of stay, that is occupied by the target population, and that is linked to an on-site or off-site service that assists the supportive housing resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community.

Transitional and supportive housing must be allowed in all zones that allow residential uses and subject to the same development standards that apply to other residential uses of a similar type within these zones. Furthermore, AB 2162 (Government Code §65650-65656) requires supportive housing to be allowed by-right in zones where multi-family and mixed-uses are permitted, including nonresidential zones that allow multi-family uses, if the proposed development meets certain criteria (e.g., deed restricted for 55 years to lower income households, serving “target population” of homeless individuals, minimum area dedicated for supportive services, etc.).

The City does not currently allow transitional and supportive housing in any zoning districts.

Although the 5th Cycle Housing Element Program 3.2.2 directed the City to amend the Zoning 230
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Code to define and permit these uses, this has not been completed. The City will amend the Zoning Code to allow such uses consistent with State law (see Program 4.D).

Employee Housing
Health and Safety Code §17021.5 requires employee housing (also called farmworker housing) for six or fewer persons to be treated as a single-family structure and residential use. Section 17021.6 requires that employee housing consisting of no more than 36 beds in group quarters designed for use by a single family or household to be treated as an agricultural use. No conditional use permits, zoning variances, or other zoning clearance are to be required.

The City does not currently allow employee housing in any zoning district. Although the 5th Cycle Housing Element Program 2.1.3 directed the City to amend the Zoning Code to allow employee housing, this has not been completed. Program 4.E is included to amend the Zoning Code to reflect State law provisions for employee housing.

Single-Room Occupancy (SROs)
A single-room occupancy (SRO) unit is considered a small, affordable housing unit that can serve as an entry point into more stable or long-term housing for people who previously experienced homelessness. The City defines SROs as a residential project with small units between 150 and 350 square feet each, with or without integral bathroom and/or kitchen facilities.

The Zoning Code allows SRO units in the CT and PUD/C districts with a conditional use permit.

See Emergency Shelters/Low Barrier Navigation Centers, above, for a discussion of suitability of the CT District for housing development. Also, see Section C.2.4 (Permit and Procedures) for a discussion of the conditional use permit process and required findings. Although the City does not currently have any procedures to encourage SROs, programs are proposed to facilitate their development, including modifying parking standards (Program 3.A) and amending conditional use permit findings (Program 3.G).

Manufactured and Mobile Homes
Though the City does not contain existing mobile home parks, mobile and manufactured homes can be an important source of housing choice and affordability. As manufactured homes that meet certain requirements must be permitted in mobile home parks and are frequently regulated by jurisdictions together, they are discussed here jointly.

Government Code §65852.3 requires cities to allow and permit manufactured and mobile homes on a permanent foundation in the same manner and in the same zone as a conventional stickbuilt structure, subject to the same development standards that a conventional single-family home on the same lot would be subject to.

While it is the City’s practice to treat manufactured homes on a foundation as a conventional single-family home (consistent with Government Code §65852.3), the Zoning Code does not reflect this practice. The sole reference to manufactured homes is located in Chapter 14.14 231
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(Accessory Dwelling Units), where manufactured homes are identified as being included in the Code’s definition of an ADU.

Under Program 3.J, the City will amend the Zoning Code to clarify compliance with State law and explicitly allow manufactured homes on a permanent foundation, subject to the same regulations as single-family homes.

Residential Care Facilities
State law requires local governments to treat licensed residential care facilities (sometimes called group homes) with six or fewer residents as a residential use and subject to the same development standards as a single-family dwelling (Health and Safety Code §1566.3).

Furthermore, no conditional use permit, zoning variance, or other zoning clearance shall be required of a residential facility that serves six or fewer persons that is not required of a family dwelling of the same type in the same zone. The residents and operators of a residential care facility shall be considered a family for the purposes of any law or zoning ordinance that relates to the residential use of property. However, “six or fewer persons” does not include the operator, operator’s family, or persons employed as staff.

The City defines a residential care home as a structure in which nonmedical services are provided for persons 60 years of age and over, pursuant to Health and Safety Code §1569.2. As shown in Table C-6, the Zoning Code includes residential care homes as part of a collective use designation for “Hospitals, convalescent hospitals, residential care homes, and nursing homes.” This designation is permitted by right in the PC District and requires a conditional use permit in the PCF and PCF/R1-10 zoning districts.

To facilitate compliance with State law, the current collective use designation should be separated into individual uses: residential care facility (six or fewer persons), residential care facility (seven or more persons), and other medical facility designations as desired. Consistent with State law, the Zoning Code should be amended to permit residential care facilities for six or fewer persons in all residential districts, as well as districts where single-family homes are allowed by right, and treat them as a residential use. While the City may require a conditional use permit for large residential care facilities (seven or more persons), all residential care facilities should be processed without discretionary review (i.e., subject only to objective standards). Additionally, residential care facilities should not be limited to individuals of 60 years of age or over. These changes are included in Program 3.I.

The City does not currently define a “family” as including unrelated individuals living as a single unit, which may unnecessarily limit the operation of residential care facilities. Program 3.I directs the City to add a barrier-free definition of “family” that encompasses unrelated individuals living together as a single residential unit.
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Housing for Persons with Disabilities
Persons with disabilities normally have certain housing needs that include accessibility of dwelling units, access to transportation, employment, and commercial services; and alternative living arrangements that include on-site or nearby supportive services. The Lanterman Developmental Disabilities Services Act (§5115 and §5116) of the California Welfare and Institutions Code declares that mentally and physically disabled persons are entitled to live in normal residential surroundings. This classification includes facilities that are licensed by the State to provide permanent living accommodations and 24 hour, primarily non-medical care and supervision for persons in need of personal services, supervision, protection, or assistance for sustaining the activities of daily living. It includes hospices, nursing homes, convalescent facilities, and group homes for minors, persons with disabilities, and people in recovery from alcohol or drug addictions.

The City ensures that new housing developments comply with California building standards (Title 24 of the California Code of Regulations and the Americans with Disabilities Act (ADA)) and federal requirements for accessibility. Also, per Table C-5 above, there are no parking reductions for housing types for persons with disabilities. Program 3.A directs the City to amend the Zoning Code to include parking reductions for housing for persons with disabilities, seniors, and other housing types which may not require the standard number of spaces.

Reasonable Accommodation
Both the federal Fair Housing Act and the California Fair Employment and Housing Act direct local governments to make reasonable accommodations (i.e., modifications or exceptions) in their zoning laws and other land use regulations when such accommodations may be necessary to afford disabled persons an equal opportunity to use and enjoy a dwelling. For example, it may be reasonable to accommodate requests from persons with disabilities to waive a setback requirement or other standard of the Zoning Code to ensure that homes are accessible for the mobility impaired. Whether a particular modification is reasonable depends on the circumstances.

The Zoning Code does not currently contain procedures for reasonable accommodations. Under Program 4.F, the City will adopt reasonable accommodation procedures compliant with State law.

Density Bonus and Incentives for Affordable Housing
Section 14.28.040 (Density Bonuses) provides density bonus provisions pursuant to State Density Bonus requirements (Government Code §65915 et seq.) to increase the production of affordable housing. Developments identified in this Section are eligible for density bonuses and/or incentives, as well as parking requirement alterations and waivers. The percentage density bonus and number of incentives granted varies based on development type and the percentage of affordable units constructed. Density bonuses and incentives are also available for developments which provide housing for transitional foster youth, disable veterans, or homeless persons; include a childcare facility; convert apartments into condominiums; and for residential projects that include the donations of land for the construction of very low-income housing. 233
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Subsection F provides incentive standards and a list of “On-Menu” incentives that the Council has determined would not have a specific, adverse impact. These incentives are:
• A 20 percent increase in lot coverage limits;
• A 20 percent decrease in lot width requirements;
• Up to a 35 percent increase in the maximum floor area ratio for applicable zoning districts; • Up to an 11-foot increase in allowable height;
• Up to a 20 percent decrease in required setbacks (except for properties abutting R1 zoned properties); and
• Up to a 20 percent decrease from open space requirements.

An applicant may request an “Off-Menu” incentive not included above, so long as the incentive meets the definition under State law. The review authority will determine whether any such requested incentive may have a specific, adverse impact.

These provisions were most recently updated in 2019. In 2020, the adoption of AB 2345 increased the allowed density bonus from 35 percent to 50 percent for qualifying development projects and altered a variety of minor density bonus requirements. Program 3.E directs the City to amend the Zoning Code to update its density bonus provisions to be in compliance with State law.

Inclusionary Housing
Inclusionary Housing Provisions
The City provides for the development of affordable housing for lower-income households in Chapter 14.28 (Multiple-Family Affordable Housing). This Chapter utilizes inclusionary housing policies, requiring 15 percent of the total units in multiple-family residential projects of five to nine units (both rental and for-sale) to be designated as affordable at the moderate-, low-, or very lowincome level. For rental projects of 10 or more units, either 20 percent of the units must be designated as affordable at the low-income level or 15 percent at the very low-income level. Forsale projects of 10 or more units must designate 15 percent of units as affordable, with a majority affordable at the moderate-income level and the remaining units at the low- or very low-income level. Unless otherwise approved by the Council, affordable units must be dispersed throughout the project, constructed concurrently with market rate units, and shall not be significantly distinguishable by size, design, construction, or materials.

Though the primary emphasis of these provisions is for affordable units to be constructed in conjunction with market rate units within the same project, this may not always be practical. As an alternative to providing the required affordable housing units, Section 14.28.020 (Applicability) indicates that payment of an in-lieu fee is permitted for projects with five to nine units. Municipal Code Chapter 3.49 (Affordable Housing Impact Fees) establishes provisions for the calculation and payment of this fee.
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Municipal Code Chapter 3.49 (Affordable Housing Impact Fees) requires the payment of housing impact fees for all new for-sale residential developments, multiple-family residential rental developments, and non-residential developments that result in a net increase of one unit or more (for residential projects) or 500 square feet or greater of new floor area (for non-residential projects). It also provides further alternatives to the on-site provision of affordable units beyond the payment of a housing impact fee, including the designation of affordable units at an off-site location or the dedication of land within City limits for the construction of affordable units. However, the City has not adopted a resolution establishing the amount of an affordable housing impact fee.

Under Program 2.B, the City will conduct an analysis to support the establishment of an affordable housing in-lieu fee for residential developments and a commercial linkage fee for affordable housing.

Inclusionary Housing Analysis
The City has implemented inclusionary housing requirements since 1995. Since that time, Los Altos has continued to experience new development and housing production. Between 2015 and 2020, 114 new housing units were issued permits in Los Altos; of these, 111 were above moderate units, one was moderate income units, two were low-income units, and none were very lowincome units (see Appendix A, Housing Needs Assessment, Table A-13). In 2021, 119 new housing units were issued permits, consisting of 58 above moderate units, 37 moderate income units, 21 low-income units, and three very low-income units. While this is just over half of the City’s overall 5th Cycle Regional Housing Needs Allocation (RHNA) (477 total units), permitting substantially increased in 2021, and continued growth is expected due to a strong pipeline of entitled and proposed developments (see Appendix B, Table B-3).

To ensure effectiveness of the inclusionary housing ordinance in meeting the City’s Housing Element’s goals and objectives, the City will evaluate the inclusionary housing requirements (e.g., 15 to 20 percent inclusionary rates) as described in Program 2.A.

Other Local Ordinances
Municipal Code Chapter 14.30 (Short-Term Rental Prohibition) establishes regulations to maintain adequate housing stock for permanent residents and prevent undesirable impacts associated with short-term rentals. This Chapter designates short-term rentals as a prohibited use in every district in the city.

In 2021, the City adopted a resolution amending the City’s Single-Family Residential Design Guidelines to establish objective design standards for SB 9 lot splits and units. These standards do not preclude the construction of two 800 square foot minimum primary dwelling units consistent with SB 9. The City has prepared a handout to clearly identify SB 9 project application requirements.

The City does not have other ordinances, such as growth management policies or an urban growth boundary, that directly impact the cost and supply of residential development. 235
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C.2.3 Building and Housing Codes and Enforcement
Los Altos has adopted the 2019 California Building Standards Code (Code of Regulations, Title 24), which sets minimum standards for residential development and all other structures. The standards may add material and labor costs but are necessary minimums for the safety of those occupying the structures. The City has also adopted the 2019 editions of the State’s Administrative Code, Residential Code, Plumbing Code, Mechanical Code, Electrical Code, Energy Code, Fire Code, Green Building Standards Code, Existing Building Code, Historical Building Code, and Referenced Standards Code. In addition, the City has adopted the 1998 edition of the State’s Uniform Housing Code and Uniform Code for the Abatement of Dangerous Buildings. All codes listed above are referenced in Title 12 (Buildings and Construction) of the Municipal Code.

In many cases, various amendments to the State Code have been incorporated to reflect issues of local concern. Most recently, the City adopted amendments to Title 12.22 (Energy Code) for all-electric buildings pursuant to State law, which allows local governments to adopt energy standards that are more stringent than Statewide standards, provided they are cost effective and will result in designs that consume no more energy that that permitted under the 2019 California Energy Code. These amendments were adopted to further greenhouse gas emission reduction goals established in the City’s Climate Action and Adaptation Plan. Specifically, these amendments require newly constructed buildings to be all-electric or to be pre-wired to accommodate future electric appliances or equipment. These standards may increase initial construction costs, but over time will benefit the health, welfare, and resilience of current and future residents.

The City’s Code Enforcement Division, within the Los Altos Police Department, enforces the Los Altos Municipal Code. The City’s Code Enforcement Division enforces the Los Altos Municipal Code. Code enforcement practices are primarily complaint-driven, and Code Enforcement Staff works with property owners and other appropriate City staff to resolve and legalize violations. This includes identifying housing units which are substandard, overcrowded, or unsafe and working with other City staff to remedy these deficiencies. By requiring repair, maintenance, and compliance with building and fire codes and zoning requirements (e.g., setbacks), the City’s code enforcement efforts have eliminated hazardous conditions which are a threat to housing and residents of all income levels. From 2015 to 2020, the City has received and closed five code enforcement cases related to substandard housing (see Appendix A, Section A.4.4). The impact of these efforts on housing safety and maintaining decent housing conditions is significant even if only few issues are address every year.
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C.2.4 Permits and Procedures
Permits and Procedures
The time required to process a project varies from one entitlement to another and is directly related to the size and complexity of the proposal, as well as the number of actions or approvals needed to complete the process. Table C-8 identifies approvals and/or permits that could be required for residential planning entitlements, their corresponding approval body, and the typical or estimated approval timeline. It should be noted that every project would not have to obtain each permit/approval.

Table C-8: Typical Approval Timelines
Permit/Procedure
Type Review Authority
Typical Processing Time
Non-Complicated Project Complicated Project
Conditional Use
Permit
Planning
Commission/City
Council
2-4 months 4-6 months
Design Review
(one story) City staff 2-3 months 3-4 months
Design Review
(two story)
Design Review
Commission 3-4 months 4-6 months
Tentative Map Planning Commission 4-6 months 6-8 months Parcel Map Planning Commission 4-6 months 6-8 months
Multi-family (<20
units) Planning
Commission/City
Council
6-9 months 9-12 months
Multi-family (>20
units) 9-12 months 12-18 months
Note: All other permit/approvals are assumed to be subject to a Mitigated Negative Declaration/Negative Declaration or lower-level environmental review.

Source: City of Los Altos, Title 14 (Zoning)
The average time for a new single-family home to be approved is six months, which typically includes design review approval with an average of three hearings. The average time for a new multi-family development to be approved is 12 to 14 months, which typically includes approval by the Complete Streets Commission, Planning Commission, and City Council (an average of four hearings). As analyzed and discussed below, various programs are included to reduce processing time and streamline approvals, including the development of standards conditions of approval to provide certainty to applicants and approval bodies (e.g., Programs 3.H and 3.K).

Additionally, the time lapse between project approval and application for building permit varies widely. In the past five years, several multi-family developments have experienced lapses of only six months or less. For example, a three-story, 10-unit multi-family development at 385 First Street was approved on July 9, 2019 and submitted for building permit on December 16, 2019. However, 237
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several larger projects have seen lapses of a year or more. For example, a 196-unit multi-family development (including multiple structures, underground parking, and 28 affordable units) at 5150 El Camino Real received planning approval on December 10, 2019 and has yet to receive a building permit, a lapse of 26 months and counting8. Though more complex projects may take a longer period to prepare a full set of plans, similar lapses have been observed for smaller projects.

Conditional Use Permit
Zoning Code Chapter 14.80 establishes the applicability and process for conditional use permits (CUPs). The Planning Commission must review all CUPs at a public hearing and is the final decision-making body for CUP applications in all OA and C districts for businesses proposed in existing structures. However, as noted below in “Design Review,” any project in a non-singlefamily district that includes exterior alterations, an addition, or new construction is subject to commercial and multi-family Design Review approval, potentially requiring City Council approval.

Regardless of the final decision-making body, CUP approval is subject to the findings listed in Zoning Code Section 14.80.060. These include typical findings, such as consistency with the General Plan and not detrimental to the public health, safety, and welfare, as well as specific findings for projects located in the certain zoning districts. Program 3.G requires that any findings applicable to housing developments, including single-room occupancy units, be limited to objective findings and standards consistent with State law.

Planned Unit Development (PUD)
To provide options for developments which confirm with the objectives of the Zoning Code but deviate in certain respects from the zoning standards, a property owner may, at their discretion, petition for the approval of their project as a PUD alongside an application for a CUP. In no case are PUDs mandatory in Los Altos.

Described in Zoning Code Section 14.62.130, this process requires the submission of a tentative plan describing the basis for the PUD and proposed development standards and regulations. A conditional use permit is required as part of a PUD application. After an application has been filed, the Planning Department reviews the application and prepares a staff report to be considered during a public hearing before the Planning Commission. The Commission may recommend approval to the City Council, in which case the Council may accept, modify, or reject during a subsequent public meeting. If the Commission denies the petition, their decision is final unless the applicant appeals to the Council.
8 The 5150 El Camino Real property was sold, and the new developer is amending the project to change from ownership to rental and other modifications. This has resulted in the time lapse between original approval and building permit submittal.
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Design Review
Design Review applies to all new construction, additions, and exterior modifications, separated into two categories: 1) single-family residential; and 2) commercial, multi-family residential, and public/community facility.

Single-Family Design Review
Projects that include exterior alterations, additions, or new construction in a single-family (R1) district are subject to the City's Residential Design Guidelines, located in Zoning Code Chapter

14.76. Exterior alterations and additions under 500 square feet can be approved by the Planning Department. New houses and additions greater than 500 square feet require administrative design review approval by the Development Services Director. Design Review approval by the Design Review Commission is required in certain cases, including any of the following:
• Any new two-story structure;
• Any conversion of a one-story structure to a two-story structure; • Any addition of habitable area to the second floor of an existing two-story structure; or • Any new one-story structure over 20 feet in height; etc.

The required findings for single-family residential design review approval include some subjective criteria, including the following (Zoning Code Section 14.76.060):
• The height, elevations and placement on the site of the proposed main or accessory structure or addition, when considered with reference to the nature and location of residential structures on adjacent lots, will avoid unreasonable interference with views and privacy, and will consider the topographic and geologic constraints imposed by particular building site conditions.
• The orientation of the proposed main or accessory structure or addition in relation to the immediate neighborhood will minimize the perception of excessive bulk. • General architectural considerations, including the character, size, scale and quality of the design, the architectural relationship with the site and other buildings, building materials and similar elements have been incorporated in order to insure the compatibility of the development with its design concept and the character of adjacent buildings.

Under Program 3.H, the City will review and approve more projects at the staff level by eliminating the Design Review Commission. This will reduce the number of meetings and approval time for various projects, including some single-family homes currently requiring Design Review Commission approval. Also, see further discussion below.

Multi-Family and Mixed-Use Design Review
Any project in a non-single-family district that includes exterior alterations, an addition, or new construction is subject to commercial and multi-family design review approval, located in Zoning 239
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Code Chapter 14.78. A project that includes alterations or an addition of under 500 square feet is subject to Development Services Director approval. A project that includes an addition of greater than 500 square feet (but less than 50 percent of total floor area and does not increase building height) is subject to Planning Commission approval. All new buildings and additions that exceed 50 percent of total floor area and/or increase building height are subject to City Council approval, preceded by Planning Commission and Complete Streets Commission review and recommendation.

In most cases (except Accessory Dwelling Units and SB 9 Projects), multi-family residential and residential mixed-use projects, and single-family projects, are subject to Administrative Design Review (City staff review), Design Review Commission, Planning Commission, Complete Streets Commission, and City Council approval through conditional use permit and/or design review requirements, resulting in an extended review process. When required, final approval or concurrence by the City Council adds an additional review within the process. In addition to this, projects in the Downtown are also subject to a third-party independent architect review, adding further cost and time to review.

The City adopted a set of objective design standards applicable to all multi-family and mixed-use development in 2021 (Zoning Code Section 14.66.280 and provisions for Design Control application to specific zones). However, the required findings for multi-family and mixed-use design review approval include some subjective criteria, including the following (Zoning Code Section 14.78.060):
• The proposal has architectural integrity and has an appropriate relationship with other structures in the immediate area in terms of height, bulk and design. • Building mass is articulated to relate to the human scale, both horizontally and vertically.

Building elevations have variation and depth and avoid large blank wall surfaces.

Residential or mixed-use residential projects incorporate elements that signal habitation, such as identifiable entrances, stairs, porches, bays and balconies.

While Senate Bills 35 (Streamlined Approval Process) and 330 (Housing Accountability Act) limit the number of public hearings and applicability of subjective standards and findings to housing developments and emergency shelters, the City’s review procedures and subjective findings can lead to a protracted review process. Therefore, under Program 3.H, the City would modify design review thresholds to reduce or eliminate Council approval (i.e., Council would only hear appeals) and ensure that only objective criteria and findings are applicable to housing developments and emergency shelters consistent with State law. Also, under Program 3.K, the City would develop multimodal transportation development standards that will also streamline the project review process.

Furthermore, as part of the Design Review process, story poles are required to be installed for all multi-family, mixed-use, and commercial development projects unless an exception is approved by City Council. This requirement can extend project review and increase application processing 240
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costs. Furthermore, digital simulations and computer modeling provide more accurate visual representations of development projects, illustrating massing, design, and details not available through physical story poles. The City also has the discretion to require additional information for projects that are not consistent with the City’s General Plan and Zoning Code; therefore, the City would eliminate the story pole requirement and exception process (Program 3.L).

SB 35 Processing
The City has prepared an SB 35 eligibility checklist and submittal checklist to clearly outline requirements for these projects. The City processes SB 35 applications in compliance with State law and HCD guidelines.

Permit and Development Fees
The City requires payment of application fees for entitlement processing and development fees at time of building permit issuance. City fees are based on the City’s costs of providing services and are reviewed and adjusted periodically. The City’s permit and development fees are available on the City’s website consistent with transparency requirements (i.e., Government Code §65940.1(a)(1)(A)).9
Planning Fees
Table C-9 lists the City’s Planning Fees.
9 City of Los Altos, Fee Schedule, https://www.losaltosca.gov/adminservices/page/fee-schedule. 241
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Table C-9 Planning Department Fee Schedule
Service Fee
Conditional Use Permit
New Construction (>500 sq. ft.) [PC&CC] $5,350
Design Review
Single-Family
Administrative (≤500 sq. ft.) $295
Administrative (>500 sq. ft.) $890
Design Review Commission $1,785
Commercial/Multiple-Family
Administrative (≤500 sq. ft.) $890
PC & CC (>500 sq. ft.) $5,350
Accessory Dwelling Unit Review $595
Environmental Initial Study $1,785 + Time/Material
Environmental Impact Report $5,350 + Time/Material
General Plan/Map Amendment $5,350 + Time/Material
Lot-Line Adjustment $1,785 + Time/Material
Planned Unit Development $5,350 + Time/Material
Preliminary Project Review $295
Tentative Subdivision Map Review $5,350
Variance Review
Single-Family (Main Structure) $1,785
Commercial/Multiple-Family [PC Only] $1,785
Commercial/Multiple-Family [PC & CC] $5,350
Zoning Ordinance/Map Amendment $5,350 + Time/Material
Source: City of Los Altos Fee Schedule (FY 2018/19)
Development Fees
The City imposes development fees and collects fees for outside agencies. Outside agency fees include the Los Altos Unified School District.

Table C-10 provides a comprehensive list of the City’s Development Fees.

Table C-10: Development Fees
Development Fee Single-Family Multi-Family
Park In-Lieu Fee1 $77,500 per unit $48,800 per unit
Traffic Impact Fee $6,774.20 per unit $4,159 per unit
$1,744.20 per senior residential unit
Los Altos Unified School District Fee* $2.72 per s.f.
1 Applicable to subdivisions (i.e., tract or parcel maps) * Outside agency fee.

Source: City of Los Altos
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Fee Analysis
Table C-11 shows total estimated planning and development fees for single-family and multifamily units, as well as the estimated fee cost as a portion of total development costs.

Table C-11: Planning and Development Fees for Single-Family and Multi-Family Single-Family1 Multi-Family (50 condo
units, market rate)2, 3
Multi-Family (100 rental
units, affordable)2
Design Review $1,785 $5,350 $5,350
Tentative Map - $5,350 -
Park-In Lieu $77,500 $2,440,000 -
Traffic Impact $6,774 $207,950 $415,900
School District Fee* $9,520 $136,000 $272,000
Total Fees $95,579 $2,794,650 $693,250
Total Fees per Unit $95,579 $55,893 $6,933
Total Estimated
Development Cost $1,833,729 $31,087,378 $43,058,300
Total Estimated
Development Cost per Unit $1,833,729 $621,748 $430,583
Estimated Fee Cost as a
Portion of Total
Development Cost
5% 9% 2%
1 Assumes a 3,500 square foot house with a 2-car garage. 2 Assumes 1,000 square foot units.
3 Assumes public art requirement is provided on-site.
* Outside agency fee.

Source: City of Los Altos, LWC
Development fees add to the cost of housing and can constrain housing development if the cost of development exceeds the threshold for financial feasibility. The Park In-Lieu fee is the most substantial fee, which is higher compared to the City of Palo Alto’s Park Impact Fee of $62,039 per single-family unit and $45,884 per multi-family unit, but comparable to the City of Mountain View’s park land dedication in-lieu fee (see Table C-12). Table C-12 compares the City’s development impact fees to the neighboring jurisdictions of Mountain View and Palo Alto (excluding outside agency fees). The City’s overall impact fees are similar to Mountain View and Palo Alto’s overall impact fees. As reviewed by the Terner Center in a March 2018 report, the 243
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City’s processing fees represent reasonable costs; however, Program 3.D will result in further evaluation and adjustments to City fees as described below.10 Table C-12: Development Impact Fees Comparison 1
Development Fee Los Altos Mountain View Palo Alto
Parks
Single-family:
$77,500
Multi-family: $48,000
Based on land value
(in FY 21/22 fee
ranges between
$57,500 to $73,200
per market rate unit)
Single-family: $62,039
Multi-family: $45,884
Transportation/
Traffic
Single-family: $6,744
Multi-family: $4,159
Senior: $1,744
Single-family: $5,364
Multi-family: $3,004
Single-family: $9,266 per net new
PM peak hour trip
Community
Facilities 2 ‒ ‒ Single-family: $10,309
Multi-family: $7,797
Housing ‒ ‒ Apartment (rentals): $24.52 per sf
1 All fees are per dwelling unit unless otherwise noted. 2 For Palo Alto, includes impact fees for community centers, libraries, public safety facilities, and general government facilities.

Source: City of Los Altos, City of Mountain View, City of Palo Alto Existing City impact fees (park in-lieu and traffic) are applied on a per-unit basis and are higher for single-family houses than for market-rate multi-family units (assumed to be condominium units, subject to the park in-lieu fee). However, despite this difference, impact fees make up a greater portion of multi-family development costs because single-family houses are much larger than multi-family units as per-unit fees incentivize larger unit sizes. Therefore, the City will evaluate refining fees to be applied on a per square foot basis rather than per unit to encourage the development of smaller, more affordable housing units (Program 3.D).

C.2.5 On and Off-site Improvements
New development is required to provide public improvements to serve its new residents consistent with City standards. Design and improvement standards are described in Municipal Code Chapter

13.20 (applicable to subdivisions) and the City’s Public Works Standard Guidance Specifications (applicable to improvements in the public right-of-way or easements). Public improvement obligations include providing streets, storm drains, sewer connections, water connections, fire hydrants, street lights, and street trees. Required street right-of-way widths are based on street classification and range from 20 feet (private street) to 120 feet (major thoroughfares) (Municipal 10 UC Berkeley, Terner Center for Housing Innovation. “It All Adds Up: The Cost of Housing Development Fees in Seven California Cities”. March 2018.
https://ternercenter.berkeley.edu/wp-content/uploads/pdfs/Development_Fees_Report_Final_2.pdf 244
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Code 13.20.010.D). The required improvements are typical for new residential development; however, the City allows many single-family neighborhoods to remain without curbs, gutters, or sidewalks as desired to maintain a less urban appearance. New residential development in Los Altos will primarily be infill, where streets have already been constructed to City standards.

Section C.3 Non-Governmental Constraints
Market factors over which a local government has only limited ability to control can influence the jurisdiction’s capacity to develop more housing. These market-related constraints include land cost, construction cost, and the availability of financing. An assessment of these nongovernmental constraints can inform the development of potential actions that can ameliorate its impact.

C.3.1 Housing Supply/Conditions
Market Overview: For-Sale
As shown in the Needs Assessment (Appendix A, Figure A-39), the region’s home values have increased steadily since 2001, besides a slight decrease during the Great Recession. The rise in home prices has been especially steep since 2012, with the median home value in the Bay Area nearly doubling during this time. The typical home value in Los Altos was estimated at $3,358,599 in December 2020, a 159 percent increase from $1,296,783 in 2001.

Since the beginning of the recovery from the Great Recession in 2012, interest rates have been maintained at low levels of 3.5 to 4.5 percent. Due to the COVID-19 pandemic, however, national 30-year mortgage rates have dropped to historically low levels. According to the Federal Home Loan Mortgage Corporation, or Freddie Mac, 30-year mortgage rates have held at or around 2.8 percent since August 2020, with an average of 2.88 percent as of September 202111. Note that rates have been increasing in recent months.

When interest rates are low, capital investment and housing production generally increase, and more people are likely to take out a mortgage than when interest rates are higher. In addition, consumers are able to borrow more money for the same monthly payment. Extremely low interest rates are one of the factors that has led to overall increased home values in Los Altos above what has been seen in the past several years. Coupled with the general desire during the pandemic to move from denser to more spacious neighborhoods, the housing market will likely continue to be competitive in the near future.
11 Federal Home Loan Mortgage Corporation (Freddie Mac), Primary Mortgage Market Survey® (September 23, 2021) 245
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Market Overview: Rental
As shown in the Needs Assessment (Appendix A, Figure A-42), since 2009 the median rent has increased by 56.7 percent in Los Altos, from $1,980 to $3,103 per month. In Santa Clara County, the median rent has increased over 67 percent, from $1,540 to $2,155. The median rent in the region has also increased significantly during this time (a 54 percent increase). While Los Altos’ rent increase outpaced the Bay Area but not the county, Los Altos’ rent is 1.4 times greater than that of the county.

Per the Needs Assessment (Appendix A, Figure A-44), renter households in Los Altos experience a slightly lower housing cost burden compared to homeowners. An estimated 11.4 percent of renters spend 30 to 50 percent of their income on housing compared to 16.0 percent of those that own. Additionally, 11.2 percent of renters spend 50 percent or more of their income on housing, while 12.0 percent of owners are severely cost-burdened. In total, almost 23 percent of renters (457 households) are cost burdened, compared to 28 percent of owners (2,416 households).

C.3.2 Development Costs
Land Costs
Due to the lack of vacant property in the city, a residual land value analysis was used to estimate the price of land in Los Altos. The analysis used comparables from the City and nearby communities sold within the past three years (2019 through 2021). Individual lots ranged from $68 to $152 per square foot, or about $2,968,298 to $6,608,688 per acre. Lot sizes ranged from approximately 5,401 to 10,667 square feet. Residential multi-family land in the city is estimated to cost an average of $110 per square foot, or about $4,782,048 per acre. In 2020, land values were estimated in conjunction with evaluation of the City’s park in-lieu fee. The 2020 analysis valued single-family residential land at a range of $150 to $190 per square foot and multi-family residential land at $300 to $350 per square foot, assuming condominium and mixed-use development for multi-family land. Based on the 2020 estimates, multi-family land costs are over $15 million per acre.

There were no recent raw land sales in Los Altos, and the city is generally built out. The lack of available land in is considered a constraint to development, as housing production will most likely occur on more expensive opportunity sites for redevelopment. A developer will need to pay for the existing on-site improvement before demolishing it, resulting in a cost premium over vacant land. In addition, sites with existing uses will most likely incur more costs due to the removal of on-site structures.

Construction Costs
According to a March 2020 report published by the Terner Center for Housing Innovation at UC Berkeley, construction costs for multi-family housing in California have climbed 25 percent between 2009 and 2018. This increase is in part due to the higher cost of building materials, such 246
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as wood, concrete, and steel, as well as prevailing wage requirements. According to RSMeans, construction costs (including materials and labor but excluding soft costs such as fees) for a small apartment complex in the Los Altos area ranged between $165 to $193 per square foot in 2021.

However, based on the City’s 2016 affordable housing nexus studies, apartment construction costs for West Santa Clara jurisdictions were estimated at $230 per square foot. Construction costs have continued to increase since 2016. Construction costs can vary depending on the type of development, ranging from more expensive steel-frame Type I construction to more affordable wood-frame Type V. Due to the smaller scale, single-family homes tend to be more expensive to construct on a per square foot basis than multi-family. This cost can fluctuate depending on the type and quality of amenities to the property, such as expensive interior finishes, fireplaces, swimming pools, etc.

Soft costs are the costs that are not directly incurred by the physical construction of the development. These costs include services for architectural, consultant, and legal services, as well as permitting requirements and impact fees. They generally range from 15 to 30 percent of total development costs but can fluctuate depending on local fees and exactions. Please refer to the Permit and Development Fees section, above, for a discussion of the City’s required permit and development fees.

C.3.3 Availability of Financing
The availability of financing can impact rates of homeownership. The ability to secure financing can be influenced by several factors, including creditworthiness, debt-to-income ratio, and the restrictiveness of mortgage lending standards. Reviewing data collected through the Home Mortgage Disclosure Act (HMDA) can reveal the role the lending market has had on local home sales. Home purchase loans in 2020 are summarized in the table below.

Almost all traditional home loan applications (between government-backed and conventional) in 2020 were for conventional loans, for a total of 382 home loan applications across both types.

This disparity could be driven from high home values in Los Altos, as government-backed loan programs typically have a maximum loan amount. The approval rate for conventional loans was 77 percent.

In competitive housing environments, where purchasing a new home may be out of reach for some, home renovations can be a desirable and more affordable way to add value to property.

There were 115 home improvement applications in 2020. The approval rate for these types of applications was 51 percent.
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Table C-13: Total Home Loan Applications
Type Total Applications
Government-backed 1
Conventional 381
Refinancing 2,277
Home Improvement 115
5+ Units 1
Non-occupant 102
Source: HMDA, 2020
Figure C-1: Home Loan Application Disposition
Source: HMDA, 2020
C.3.4 Market Constraints Summary
Economic conditions in Los Altos reflect a competitive housing market. Residential developments can garner higher home sale prices and rental rates than across the ABAG region. As such, Los Altos has market conditions that favor the development of both for-sale and for-rent housing. Due to high housing demand, however, Los Altos is generally built out, so future housing development will be constrained by existing development or require demolishing existing structures, improvements, and uses. The lack of available vacant land may constrain housing production due to the increased costs associated with redevelopment.

C.3.5 Community Resistance to Housing
Another constraint to housing production in the Bay Area is community resistance to new developments. There are various concerns often expressed, including new housing developments will cause increased traffic, place a burden on other infrastructure (e.g., water supply, schools, etc.), adversely affect community character, and result in loss of valuable open space. Regardless of the factual basis of the concern, vociferous opposition can slow or stop development.
100%
77% 68%
51%
0%
59%
0% 8% 8%
34%
0%
14%
0%
15% 24% 15%
100%
27%
Government-backed Conventional Refinancings Home Improvement 5+ Units Non-occupant % Approved % Denied % Withdrawn or Incomplete
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While potential opposition to affordable housing exists in many communities throughout the Bay Area, Los Altos recently implemented objective development standards for multi-family and mixed-use developments to facilitate project review and approvals. The City continues to inform the community about State requirements for streamlining housing and works diligently to maintain compliance with ongoing amendments to State law.

Section C.4 Environmental and Infrastructure
Constraints
C.4.1 Environmental Constraints
Los Altos is a fully urbanized community on the northwestern edge of Santa Clara Valley. Its name, Spanish for “The Heights,” references its position at the foot of the Santa Cruz Mountains, and portions of four creeks flow downhill through Los Altos on their course to the San Francisco Bay.

Due to its relatively flat terrain in an economically dynamic region, Los Altos is almost entirely built-out, with few remaining vacant parcels (even when accounting for potential annexations).

Future growth will occur primarily through the redevelopment of existing land uses.

The City has taken measures to prepare for and mitigate impacts from its main environmental hazards – seismic activity, landslides, flooding, and wildfire. These measures include required slope stability studies for hillside development and setbacks along flood-prone Adobe Creek through the City’s watercourse protection regulations (Municipal Code Chapter 6.32). None of these identified environmental hazards are considered a constraint that would significantly affect the production and maintenance of housing.

C.4.2 Infrastructure Constraints
Water
Los Altos’ water is supplied by the California Water Service Company (Cal Water), part of the Los Altos Suburban District, which also serves part of Los Altos Hills, Cupertino, Mountain View, and Sunnyvale. Water is sourced from a combination of local groundwater (28 percent) and imported water (72 percent). The latter is treated surface water purchased from the Santa Clara Valley Water District (SCVWD), which originates in SCVWD reservoirs and the San Joaquin-Sacramento River Delta.

The most recent Infrastructure Improvement Plan (2022-2024) was submitted by Cal Water on July 1, 2021. The 2020 Urban Water Management Plan for the Los Altos Suburban District was submitted in June 2021. The City does not anticipate a significant increase in water demand during the planning period, and the SCVWD has not identified any substantial concerns with adequate availability of water resources.
249
Agenda Item # 3.

Housing Constraints City of Los Altos | C-41
Sewer and Stormwater
The City sanitary sewer system serves most residents and businesses, with the exception of several homes with septic systems. The City’s sanitary sewer system also serves the unincorporated area within its sphere of influence, including parts of Los Altos Hills and Mountain View. Wastewater is conveyed to the Palo Alto Regional Water Pollution Control Plant, owned and operated by the City of Palo Alto, for treatment and disposal. The City is permitted to discharge up to 3.6 million gallons per day (MGD) average annual dry weather flow to the Regional Plant.

The City owns and maintains the collection system within the City and its sphere of influence, including a limited number of pipes within Los Altos Hills and the trunk sewer that connects the City to the master metering station for the Regional Plant. The City’s collection system includes approximately 140 miles of sewer, most of which is 6-inch and 8-inch vitrified clay pipe.

The City most recently updated its Sanitary Sewer Master Plan in 2012 after assessing the hydraulics, physical condition, and maintenance of its collection system. Results showed that less than five percent of inspected pipes were in poor condition. The Stormwater Master Plan was updated in 2016. Both Master Plans identified capital improvement priorities necessary to maintain capacity and reduce flooding/overflow risk in the sewer and stormwater systems.

Additionally, the City completed a Green Stormwater Infrastructure (GSI) Plan in 2019 as required for all municipalities in the San Francisco Bay Area under the area’s Municipal Regional Stormwater Permit (MRP). The GSI Plan will guide the identification, implementation, tracking, and reporting of GSI projects in coordination with the Master Plans and other local and regional frameworks.

Overall, the City’s remaining permitted sewer discharge and projected stormwater conveyance capacities are adequate to accommodate anticipated future development.

Dry Utilities
Electricity in Los Altos is provided jointly by Silicon Valley Clean Energy, a Clean Choice Energy (CCE) program, and PG&E. Natural gas is provided solely by PG&E. Additional dry utilities include cable TV/internet (AT&T and Comcast) and solid waste (Mission Trail Waste Systems). All dry utilities are available throughout Los Altos for any future development or redevelopment. 250
Agenda Item # 3.

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251
Agenda Item # 3.

Existing Programs Review City of Los Altos | D-1
Appendix D:Existing Programs Review
Contents
Appendix D: Existing Programs Review..................................................... 1 Section D.1 Existing Housing Programs Review ...................................................................... 2 252
Agenda Item # 3.

D-2 | City of Los Altos Existing Programs Review
Section D.1 Existing Housing Programs Review
This Appendix documents the implementation status of the current Housing Element programs. The main purpose is to evaluate which programs were successful and should be continued, and which programs were ineffective and should be eliminated or modified.

Many of the City’s 2015 Housing Element programs were successfully completed or include effective ongoing City efforts. These programs include amending zoning standards for Accessory Dwelling Units (ADUs), single-room occupancy units (SROs), transitional and supportive housing, and emergency shelters; implementing inclusionary housing requirements; and monitoring and managing the City’s stock of below market rate units. These programs have facilitated housing such as Accessory Dwelling Units (ADUs) and low and moderate-income units that provide housing options for special needs populations, such as seniors and people with disabilities. The City transfers its CDBG funding to the County to implement local housing programs, including those that assist low income households, large households, female headed households, persons experiencing homelessness, and others in need. Specifically, 2015 Housing Element Goal 3: Create housing opportunities for people with special needs – and Goal 6:

Increase housing opportunities for Los Altos’ senior population – and subsequent policies and related programs advanced housing for special needs populations as follows:
• Under Policy 3.1, the City supports efforts of the County and local social service providers to increase their capacity to operate facilities servicing people experiencing homelessness. o Program 3.1.1 directs the City to assist with funding for the provision of services for people experiencing homelessness. Implementing this program, the City transfers its CDBG funding to the County to support programs for the homeless. o Program 3.1.2 directs the City to participate in regional efforts on homelessness and emergency and transitional housing. In addition to transferring CDBG funds to the County (see Program 3.1.1, above), the City provides funding to Community Services Agency (CSA) of Mountain View and Los Altos that provides various housing services and primarily serves seniors within the Los Altos community. • Under Policy 3.2, the City amended the Zoning Ordinance for compliance with State law pertaining to emergency shelters, transitional housing, and supportive housing. o Programs 3.2.1 and 3.2.2 direct the City to amend the Zoning Ordinance to allow emergency shelters, transitional housing, and supportive housing consistent with State law. The City implemented this program by amending the Zoning Ordinance, although further amendments are now required for compliance with State law (e.g., Low Barrier Navigation Centers, AB 2162).
253
Agenda Item # 3.

Existing Programs Review City of Los Altos | D-3
o Program 3.2.3 directs the City to amend the Zoning Ordinance to allow single-room occupancy units (SROs). The City implemented such amendments, but no SRO applications have been submitted.
• Under Policy 6.1, the City promotes services and information to help seniors maintain independence and remain in their own homes.
o Program 6.1.2 directs the City to maintain and publicize resources for seniors, and the City prepared a handout and an informational letter to contractors and property owners on Age Friendly Design elements.
• Under Policy 6.2, the City encourages a variety of senior housing opportunities. o Program 6.2.1 directs the City to provide density bonus increases in the CuestaLassen multi-family district of up to 38 dwelling units per acre, and the City will process these requests when received.

Although existing policies and programs have provided resources to special needs populations and resulted in more opportunities for housing that can accommodate special needs groups, limited housing has become available since 2015 for these special needs groups. Therefore, the existing programs have been substantially strengthened, and new programs added to further housing opportunities for special needs populations.

Various existing programs are recommended to be continued with some modifications to improve effectiveness based on the housing needs assessment (Appendix A), housing constraints analysis (Appendix C), and/or reflect State law or other programmatic changes since the last Housing Element adoption. Other programs, however, are recommended to be deleted, as they are addressed through the sites inventory and rezone program, may have been completed in the last Housing Element cycle, or may be better reframed as policies instead of programs. Please see Table D-1 for the analysis of existing programs.
254
Agenda Item # 3.

D-4 | City of Los Altos Existing Programs Review
Table D-1: Existing Housing Element Programs Review
Program Name &
Number
Program
Description Objectives ResponsibleParty Evaluation Modify / Delete / Continue Program Category 1: Preservation, Conservation, and Rehabilitation

1.1.1 Implement
voluntary code
inspection
program
Continue the voluntary code inspection program
encompassing code compliance, rehabilitation, energy
conservation, and minimum fire safety standards.
-
Community
Development
Department1
The City continues this
program. Since 2015,
there were only 5
substandard housing
code enforcement cases.

Continue

1.1.2 Help secure
funding for
housing
assistance
programs
Continue to assist in the provision of housing
assistance in Los Altos for low-income households with
other public agencies and private nonprofit
organizations that offer rental assistance, home repairs, and first-time homebuyer assistance. To minimize
overlap or duplication of services, Los Altos will
undertake the following actions:

The City will support County and nonprofit housing
rehabilitation programs by providing program
information to interested individuals through handouts
available at City Hall, the Los Altos Senior Center, the Los Altos Library, and the Woodland Branch Library.

The City will contact previous rehabilitation applicants when new funding becomes available and post a legal
notice in the newspaper when housing rehabilitation
funds become available. The City will continue to
transfer their Community Development Block Grant
(CDBG) funds to the County to support housing
programs each year.
-
Community
Development
Department, City
Council
The City continues to
transfer its CDBG funds
to the County to support
local housing programs.

Various programs are
available that the City
could better promote.

Modify - expand the
City's methods of
providing
information (e.g.,
City website, email,
social media, etc.).
1 The Community Development Department was changed to the Development Services Department in 2022. This reflects the Department’s name at the time of the 2015 Housing Element adoption.
255
Agenda Item # 3.

Existing Programs Review City of Los Altos | D-5
Program Name &
Number
Program
Description Objectives ResponsibleParty Evaluation Modify / Delete / Continue

1.2.1 Support
rezoning from
office to
mediumdensity
multifamily
Support case-by-case review of property owner–
initiated rezoning from Office to Medium-Density
Multifamily in the Fremont-Giffin Office District.
-
Community
Development
Department
No rezone applications to
date. This is addressed
through sites inventory
and rezoning program(s).

Delete - addressed
through sites
inventory and
rezoning
program(s).

1.3.1 Enforce
neighborhood
residential
buffering
Enforce minimum standards for buffers between
residential properties and commercial uses and
public/quasi-public uses. Enforcement will occur
through the development permit review process as
provided in the Zoning Ordinance. Buffering will include a combination of landscaping, minimum setback, or
yard requirements and stepped-back building heights.
-
Community
Development
Department, Planning
and Transportation
Commission
This is addressed
through the Land Use
Element and Zoning
Code setbacks and
objective design
standards.

Delete - addressed
through the Land
Use Element and
Zoning Code
setbacks and
objective design
standards.

1.3.2 Restrict
commercial
uses in
residential
neighborhoods
Continue to restrict commercial uses in residential
neighborhoods. -
Community
Development
Department
The City has continued
to prohibit commercial
uses in residential zones
except as allowed for
home occupations.

Modify - clarify that
home occupations
are allowed in
residential zones
consistent with the
Zoning Code.

1.4.1 Implement
zoning and
design
standards
Continue to implement residential zoning, development
standards, and design review to ensure compatibility of housing with neighborhood character, minimum open
yard space, and streets that are safe.
-
Community
Development
Department, Planning
and Transportation
Commission, City
Council, Design
Review Commission
The City continues to
implement zoning
standards and design
review. Objective
standards have been
adopted to facilitate and
streamline development
review.

Modify/Merge -
implement
development and
design standards
that are objective in
the review of
housing
developments
consistent with State
law. See Program

1.4.2. 1.4.2 Evaluate
design review
process
Regularly review and adjust, if appropriate, criteria,
objectives, and procedures for design review of
residential construction to be compatible in terms of
bulk and mass, lot coverage, and proportion with
houses in the immediate vicinity. This program will set criteria under which development must be reviewed by
City staff, the Design Review Commission, and/or the
Planning and Transportation Commission.
-
Community
Development
Department, Design
Review Commission,
Planning and
Transportation
Commission, City
Council
The City made
modifications in 2015
and 2015 to design
review requirements. The
design review process
should continue to be
evaluated and
streamlined.

Modify - amend
design review
process and review
bodies to streamline
and remove the
story pole
requirement.
256
Agenda Item # 3.

D-6 | City of Los Altos Existing Programs Review
Program Name &
Number
Program
Description Objectives ResponsibleParty Evaluation Modify / Delete / Continue

1.4.3 Facilitate
alternative
modes of
transportation
in residential
neighborhoods
Facilitate alternative modes of transportation in
residential neighborhoods. -
Community
Development
Department, Planning
and Transportation
Commission, City
Council
The City has
implemented this through
the development review
process. More specificity
could be provided.

Modify - provide
specific actions the
City will undertake
(e.g., fund
community service
organizations or
other organizations
to offer rides, etc.)

1.4.4 Accommodate
the needs of
children
through design
review and
land use
regulations,
including open
space, parks
and recreation
facilities,
pathways, play
yards, etc.

Accommodate the needs of children through design
review and land use regulations, including open space,
parks and recreation facilities, pathways, play yards,
etc.
-
Community
Development
Department
This has been completed
through the adoption of
common and private
open space standards for
multi-family projects.

Modify - this has
been completed;
however, the City
could incentivize
creation of play
areas in housing
developments.

1.5.1 Review
compatibility
of land
divisions as
part of the
permit review
and approval
process
Review compatibility of land divisions as part of the
permit review and approval process. -
Community
Development
Department, Planning
and Transportation
Commission, City
Council
This is addressed
through subdivision map
findings for approval.

Delete - this is
addressed through
State required
subdivision map
approval process
and findings.

Program Category 2: New Construction

2.1.1 Encourage
diversity of
housing
Require diversity in the size of units for projects in
mixed-use or multifamily zones to accommodate the
varied housing needs of families, couples, and
individuals. Affordable housing units proposed within
projects shall reflect the mix of community housing
needs.
-.

Community
Development
Department, Planning
and Transportation
Commission, City
Council
The City evaluates during
development review. This
is policy language, not a
program.

Delete - reframe as
a policy.
257
Agenda Item # 3.

Existing Programs Review City of Los Altos | D-7
Program Name &
Number
Program
Description Objectives ResponsibleParty Evaluation Modify / Delete / Continue

2.1.2 Implement
multifamily
district
development
standards
Continue to implement the multifamily district
development standards to ensure that the maximum
densities established can be achieved and that the
maximum number of units is required to be built. (See
Table B-41 in Appendix B for a summary of multifamily
zoning requirements.)
-
Community
Development
Department, Planning
and Transportation
Commission, City
Council
The City continues to
implement adopted
standards.

Delete - replace
with programs to
remove identified
constraints to
housing (Appendix
C).

2.1.3 Allow
employee
housing
The City shall amend the Zoning Ordinance to
specifically allow employee housing for six or fewer
residents as a permitted use in residential zoning
districts, in compliance with Health and Safety Code
Section 17021.5and 17021.6.
-
Community
Development
Department, Planning
and Transportation
Commission, City
Council
The City has not
amended the Zoning
Code to allow for
employee housing given
limited agricultural
operations in Los Altos.

Continue

2.2.1 Provide
development
incentives for
mixed-use
projects in
commercial
districts
Continue to implement the affordable housing mixeduse policies developed for the Commercial Thoroughfare (CT) district, and expand development
incentives to other commercial districts in the city,
including CN (Commercial Neighborhood), CS
(Commercial Service), CD (Commercial Downtown),
CD/R-3 (Commercial Downtown/ Multiple Family), and
CRS (Commercial Retail Service). Development
incentives will be included for these districts that will encourage the development of affordable housing in
these identified commercial areas.
-
Community
Development
Department, Planning
and Transportation
Commission, City
Council
The City adopted
amendments to the CT
District and density
bonus provisions to
implement this program.

Delete - incentives
through density
bonus and other
standards
addressed through
other programs.

2.3.1 Implement
density
bonuses
Continue to implement density bonuses and other
incentives as provided by state law and the City’s
Zoning Ordinance.
-
Community
Development
Department
The City continues to
review and approve
density bonus and
incentive requests.

Modify - amend
density bonus
provisions to be
consistent with State
law.

Program Category 3: Special Needs Housing

3.1.1 Support
efforts to fund
homeless
services
Consider pursuing funding from available sources for
homeless services. The City will also assist community
groups that provide homeless services and assist such
groups in applying for funding from other agencies. The City will consider applying for grants where appropriate or will encourage/partner with local and regional
nonprofit organizations that wish to apply for such
grants.
-
Community
Development
Department, CDBG
funds* (As
transferred to the
County and applied
to the City program.)
The City continues to
transfer its CDBG funds
to the County to support
local housing programs,
including programs to
support people
experiencing
homelessness.

Modify - reflect City
funding and support
of the County’s
homelessness
services; add City
promotion of these
available services.
258
Agenda Item # 3.

D-8 | City of Los Altos Existing Programs Review
Program Name &
Number
Program
Description Objectives ResponsibleParty Evaluation Modify / Delete / Continue

3.1.2 Continue to
participate in
local and
regional
forums for
homelessness,
supportive,
and
transitional
housing
Continue to participate in regional efforts as coordinated with other adjacent cities to address homeless and
emergency and transitional housing issues and
potential solutions.
-
Community
Development
Department, City
Council, Community
Services Agency
In addition to transferring
its CDBG funds to the
County, the City provides
funding for the
Community Services
Agency (CSA) of
Mountain View and Los
Altos that provides
various housing services.

Modify - expand to
reflect the City’s
funding and support
for CSA.

3.2.1 Amend the
City’s Zoning
Ordinance to
accommodate
emergency
shelters
Amend the City’s Zoning Ordinance concurrently with
the adoption of this Housing Element to allow
emergency shelters as a permitted use by right in the
Commercial Thoroughfare (CT) district without a
conditional use permit or other discretionary review and only subject to the development requirements in this
zone. This district is well suited for the development of emergency shelters with its full access to public transit and underdeveloped parcels that allow higher-density
housing opportunities.

The public transit opportunities include Caltrain, the
VTA Bus Service, and the VTA transit hub on Showers
Drive in Mountain View. The CT district has almost 11
acres of underdeveloped parcels that will accommodate
residential housing such as emergency shelters. Four
key opportunity sites make up the approximately 11
acres of development potential that could generate as
much as 378 housing units, not including density
bonuses for affordable housing. The City will also
evaluate adopting standards consistent with
Government Code Section 65583(a) (4) that addresses
operational and design criteria that may include:
• Lighting
• On-site management
• Maximum number of beds or persons to be
served nightly by the facility
-
Community
Development
Department
The City adopted Zoning
Code amendments in
2015 that allow for
emergency shelters
consistent with State law.

Delete - this has
been completed. A
new program will
address Low Barrier
Navigation Centers.
259
Agenda Item # 3.

Existing Programs Review City of Los Altos | D-9
Program Name &
Number
Program
Description Objectives ResponsibleParty Evaluation Modify / Delete / Continue • Off-street parking based on demonstrated
need
• Security during hours that the emergency
shelter is in operation
• Allowing supportive services on-site at a level
commensurate with the number of beds

3.2.2 Recognize
the statutory
requirements
for transitional
and supportive
housing
Recognize the requirement of SB 2 to explicitly allow
both supportive and transitional housing types in all
zones that allow residential. The definitions of
transitional and supportive housing as defined in Health and Safety Code Sections 50675.2 and 50675.14.

Transitional and supportive housing will be allowed as a permitted use, subject only to the same restrictions on residential uses contained in the same types of
structure.
-
Community
Development
Department
The City amended the
Zoning Code in 2015 to
allow transitional and
supportive housing.

Modify - additional
Zoning Code
amendments are
necessary to be
consistent with
current State law for
transitional and
supportive housing.

3.2.3 Provide
incentives and
amend the
City’s Zoning
Ordinance for
compliance
with statutory
requirements
for singleroom
occupancy
residences to
address the
needs of
extremely lowincome
households
AB 2634 requires cities to identify zoning to encourage and facilitate supportive housing in single-room
occupancy units. The City will amend the Zoning
Ordinance concurrently with the adoption of this
Housing

Element to define single-room occupancy units (SROs)
and to allow SROs with a conditional use permit in
commercial thoroughfare districts in the city.

In addition, the City will review its affordable housing ordinance and other available development incentives
to determine what measures can be taken to encourage
the development of housing for people with extremely
low incomes.
-
Community
Development
Department
The City amended the
Zoning Code in 2015 to
allow SROs. No SROs
have been applied for
since the Zoning Code
amendment. The City
may consider additional
measures to encourage
SROs.

Modify - revise to
focus on actions to
encourage SROs
(reduced parking,
streamlined review,
etc.)
260
Agenda Item # 3.

D-10 | City of Los Altos Existing Programs Review
Program Name &
Number
Program
Description Objectives ResponsibleParty Evaluation Modify / Delete / Continue Program Category 4: Affordability

4.1.1 Monitor
condominium
conversion
Continue to implement the Condominium Conversion
Ordinance to protect against the conversion or
demolition of rental units. It shall require buildings in multifamily zoning districts initially built as rental units which have not been converted to condominiums to be
reconstructed as rental units unless there is greater
than a 5 percent vacancy rate.
-
Community
Development
Department
No apartments were
converted to
condominiums during the
last cycle.

Continue

4.1.2 Conserve
small houses
in areas of
small lot sizes
Continue to conserve the stock of small houses in areas of small lot sizes. -
Community
Development
Department
The City continues to
implement, but there are
no specific standards.

Delete - reframe as
a policy.

4.2.1 Facilitate
new
construction of
second
dwelling units
Chapter 14.14 (Second Living Units in R1 Districts) of
the Municipal Code allows a detached second dwelling
unit to be permitted on a lot or parcel within a singlefamily residential district that has a minimum of the greater of 150 percent of the lot area required in the
residential zoning district in which the second living unit is proposed to be located, or 15,000 square feet of lot area. A lesser lot size is required if a second unit is attached to the main residence. Findings for approval
include that a public benefit will result because the
proposed second living unit will be maintained as
affordable for very low- and low-income households. A
second living unit may be established through the
conversion of existing floor space in a single-family
structure, the addition to a single-family structure,
conversion of a conforming accessory structure, or the
construction of a new accessory structure.

The City will continue to implement the following actions annually:
• Continue to implement second dwelling unit
regulations to provide increased opportunities
for the development of affordable second
units.
• Promote awareness of regulations which allow
the construction of new second units
consistent with City regulations through public
-
Community
Development
Department
The City adopted
updates to the ADU
standards pursuant to
State law. The City has
seen an increase in ADU
interest and permits.

Modify - promote
ADU production
through streamlined
review and clear
information/
requirements.
261
Agenda Item # 3.

Existing Programs Review City of Los Altos | D-11
Program Name &
Number
Program
Description Objectives ResponsibleParty Evaluation Modify / Delete / Continue information at the Community Development
Department public counter and inclusion on
the City’s website.
• Annually review the number of second
dwelling unit permits issued.
• Continue to require a verification and
quantification procedure regarding rent and
occupancy as a condition of the permit.

4.2.2 Study the
feasibility of
reducing
minimum lot
sizes for
second living
units
Study the feasibility of reducing minimum lot sizes for second living units and amend, as appropriate, the
Zoning Ordinance to a reduce the minimum lot size for
second dwelling units.
-
Community
Development
Department, City
Council
The City adopted various
amendments to ADU
standards. This is no
longer applicable as
State law prohibits
establishing a minimum
lot size.

Delete - no longer
applicable as State
law prohibits
establishing a
minimum lot size.

4.3.1 Assist in the
development
of affordable
housing
If necessary for the development of affordable housing
projects, and when requested by the project sponsor,
consider assisting in securing funding for low- and
moderate-income housing developments through one
or more of the following actions:
• Transfer the City’s annual CDBG allocation to
the County for projects that serve the Los Altos
community.
• Provide funding to participate in a multijurisdictional housing finance program (such as a Mortgage Revenue Bond or Mortgage
Credit Certification Program).
• Apply for state and federal funding on behalf of
a nonprofit, under a specific program to
construct affordable housing including persons
with physical disabilities or developmental
disabilities.
-
Community
Development
Department, City
Council
In addition to transferring
its CDBG funds to the
County, the City
processes density bonus
and incentive requests
for projects that include
affordable units.

Modify - add other
financial incentives
for the City to
consider and offer
(e.g., waiving City
fees for 100%
affordable housing
projects).
262
Agenda Item # 3.

D-12 | City of Los Altos Existing Programs Review
Program Name &
Number
Program
Description Objectives ResponsibleParty Evaluation Modify / Delete / Continue

4.3.2 Implement
Chapter 14.28
of the
Municipal
Code, which
defines the
number of
required
below-marketrate (BMR)
units by
development
size and type,
and requires
on larger
projects
(greater than
10 market-rate
units) that the
BMR units
generally
reflect the size
and number of
bedrooms of
the marketrate units
Continue to implement the City’s Multi-Family
Affordable Housing Ordinance (Chapter 14, Section
28), which includes a series of unit thresholds at which affordable housing units will be required. The ordinance establishes the following thresholds and requirements:
• 1–4 units: Affordable housing units are not
required.
• 5–9 units: Affordable housing units are
required. In the event that the developer can
demonstrate to the satisfaction of the City
Council that providing affordable housing units
in a project will be financially infeasible, the
City Council may waive the requirement to
provide affordable housing units.
• 10 or more units: Affordable housing units are
required as follows:
o For rental units – 15% low income or
10% very low-income housing
o For owner units – 10% moderateincome housing
Chapter 14.28 also notes that unless otherwise
approved by the City Council, all affordable units in a project shall be constructed concurrently with marketrate units, shall be dispersed throughout the project, and shall not be significantly distinguishable by design, construction, or materials.
-
Community
Development
Department
In 2018, the City
changed requirements to
15% for 5 to 9-unit
projects; 20% low income
or 15% very low income
for rental projects of 10
or more units; and 15%
(with the majority of units
affordable to moderate
income) for ownership
projects of 10 or more
units. Between 2015-
2020, the City issued
permits for 2 very low
income units, 28 low
income units, and 2
moderate income units.

Modify- remove
specification of
inclusionary
amounts as those
may be adjusted as
needed to better
meet housing
objectives. Evaluate
inclusionary housing
requirements to
improve
effectiveness in
meeting City
objectives.

4.3.3 Consider
reduced
parking
requirements
for certain
housing types
and affordable
housing units
For affordable housing units and small housing units
including senior housing, studios and SROs, the City
will consider allowing just one parking space per unit.

The City will continue to monitor the underground
parking requirement to ensure this requirement is not a constraint to the production of housing or a constraint to meeting maximum densities.
-
Community
Development
Department
The City has allowed
mechanical parking lifts
to facilitate underground
parking for mixed-income
projects.

Modify - evaluate
various approaches
to reduce parking
requirements and
amend the Zoning
Code to implement.
263
Agenda Item # 3.

Existing Programs Review City of Los Altos | D-13
Program Name &
Number
Program
Description Objectives ResponsibleParty Evaluation Modify / Delete / Continue

4.3.4 Continue to
encourage
maximum
densities
Continue to ensure that the City is meeting maximum
densities in the zones that allow multifamily housing.

The City will monitor the lot coverage requirement and
the height requirements. Most recently, the City
removed the “stories requirement” from the commercial
and multiple-family districts to allow more flexibility in development and to facilitate greater potential densities.

The City also codified a maximum density development
requirement, which notes that the maximum density
permitted shall be constructed unless it is determined
by the City Council that a less dense project would be in the best interests of the community. In addition, the City will monitor the underground parking requirements as
stated in Program 4.3.3 to ensure that they do not
cause a significant constraint to meeting the maximum
densities required by all of Los Altos’ multiple- family zoning districts.
-
Community
Development
Department
The City has continued
to implement this
program; however,
current analysis of
governmental constraints
documented in Appendix
C.

Delete - replace
with programs to
remove identified
constraints to
housing (Appendix
C).

4.3.5 Initiate an
affordable
housing
administration
contract
review and
renewal
Initiate a Request for Project for the contract
administration of the City’s affordable housing programs including an emphasis on an appropriate contract
duration, administration responsibilities, enforcement, outreach and marketing.
-
Community
Development
Department, City
Council
The City has a contract
with Alta Housing, who
monitors the City's BMR
units.

Modify - update to
reflect existing
contract and
commitment to
monitor BMR units.

4.3.6 Improve the
City’s BMR
program
priority
ranking
process
Review and amend, as necessary, the City’s BMR
program application ranking process. -
Community
Development
Department, City
Council
Implemented in March
2015, when the City
revised the priority list to
merge Los Altos
residents and those
employed within the City
limits as a second
priority.

Delete - this
program has been
completed.

4.3.7 Consider a
commercial
development
linkage fee for
affordable
housing
Study and explore the option of a commercial
development linkage fee for affordable housing. If
appropriate, consider adopting a local fee.
-
Community
Development
Department, City
Council
Adopted a commercial
development linkage fee
ordinance in 2018
(Municipal Code Chapter

3.49). A fee has not yet
been established.

Modify - conduct
required analysis to
support and adopt a
commercial linkage
fee.
264
Agenda Item # 3.

D-14 | City of Los Altos Existing Programs Review
Program Name &
Number
Program
Description Objectives ResponsibleParty Evaluation Modify / Delete / Continue Program Category 5: Housing Discrimination

5.1.1 Assist
residents with
housing
discrimination
and landlordtenant
complaints
Continue to provide a service to refer individuals to
organizations or agencies who handle complaints about
discrimination, landlord-tenant relations, etc.

Complaints regarding discrimination will be referred to the Mid-Peninsula Citizens for Fair Housing, Santa
Clara County, and other appropriate fair housing
agencies. Complaints regarding landlord-tenant
problems will be referred to the Los Altos Mediation
Program, the County of Santa Clara Office of Consumer
Affairs, or other appropriate local agencies.
-
Community
Development
Department
The City continues to
make referrals as
complaints arise. The
non-profit organization
Project Sentinel provides
fair housing services to
residents of Santa Clara
County.

Modify - expand to
raise awareness of
services in addition
to referring
complaints.

Program Category 6: Senior Housing

6.1.1 Discourage
senior-only
housing from
converting to
other uses
Discourage projects developed as senior-only projects
from converting to other uses.
- Community
Development
Department
The City continues to
implement, but no
specific standards.

Delete - reframe as
a policy.

6.1.2 Assist
seniors to
maintain and
rehabilitate
their homes
Seek, maintain, and publicize a list of resources or
service providers to help seniors maintain and/or
rehabilitate their homes.
-
Community
Development
Department, Senior
Commission
City staff assisted the
Senior Commission on
an informational letter to
contractors and property
owners on Age Friendly
Design Elements. The
City created a handout
on Age Friendly Design
Elements.

Modify - update (as
needed) and
regularly promote
the Age Friendly
Design Elements
handout; require
larger lower income
developments to
utilize Universal
Design standards

6.1.3 Encourage
conforming
and contextual
senior housing
near
transportation
and services
Ensure that senior housing conforms and harmonizes
with surrounding neighborhoods and encourage that it
be located near transportation and services.
-
Community
Development
Department
The City implements
Zoning Code standards
for development.

Delete - reframe as
a policy for
promoting senior
housing near transit
and services.
265
Agenda Item # 3.

Existing Programs Review City of Los Altos | D-15
Program Name &
Number
Program
Description Objectives ResponsibleParty Evaluation Modify / Delete / Continue

6.2.1 Provide
senior housing
density
bonuses and
development
incentives
Provide density bonus increases in the Cuesta-Lassen
multifamily district of up to 38 dwelling units per acre for projects that are senior-only. Provide expanded
development incentives for senior-only projects in this district.

Consider increased densities and development
incentives for senior and affordable housing projects in all multifamily districts.
-
Community
Development
Department
The City continues to
process density bonus
and incentive requests.

Modify - codify the
additional density
bonus and
incentives for
senior-only projects.

6.2.2 Designate
and encourage
senior housing
on specific
well-suited
sites
Identify and consider additional parcels well suited for senior housing. All PUD/SC sites were developed
during the previous planning period.
-
Community
Development
Department
The City has continued
to consider additional
parcels for senior
housing, and potential
housing sites are
identified in the sites
inventory (Appendix B).

Delete - addressed
through sites
inventory and
rezoning program.

6.2.3 Mixed-use
development,
including
developments
that contain
senior and
institutional
housing, will
be encouraged
in public and
quasi-public
land use areas
that are zoned
PCF
Mixed-use development, including developments that
contain senior and institutional housing, will be
encouraged in public and quasi-public land use areas
that are zoned PCF.
-
Community
Development
Department
The City has continued
to consider additional
parcels for housing, and
potential housing sites
are identified in the sites
inventory (Appendix B).

Delete - addressed
through sites
inventory and
rezoning program.

6.2.4 Senior
housing with
extended care
facilities will
be allowed in
multifamily
and mixed-use
zoning
districts
Continue to explore opportunities to promote senior
housing with extended care facilities in other multifamily and mixed-use districts. This type of housing is
currently allowed as a conditional use in the PCF
district.
-
Community
Development
Department
The City has continued
to consider opportunities
to promote senior
housing with extended
care facilities in other
areas.

Modify - amend
Zoning Code to
clearly allow senior
housing under multifamily use and
residential care
facilities consistent
with State law.
266
Agenda Item # 3.

D-16 | City of Los Altos Existing Programs Review
Program Name &
Number
Program
Description Objectives ResponsibleParty Evaluation Modify / Delete / Continue Program Category 7: Energy Efficiency

7.1.1 Promote
energy and
water
conservation
through
education and
awareness
campaigns
Continue to promote residential energy and water
conservation, consistent with the City’s adopted Climate Action Plan, through consumer information on financial
assistance and rebates for energy-efficient home
improvements published by governmental agencies,
nonprofit organizations, and utility companies. The City will make information available at the public counter of the Community Development Department, at the Los
Altos Senior Center, through the public libraries, and
through the City’s newsletters. The information will also be available on the City’s website, and a link to energy programs will be placed on the Los Altos Environmental
Commission’s website.
-
Community
Development
Department
City staff and the
Environmental
Commission continue to
implement. The City is
currently developing a
Climate Action and
Adaptation Plan (CAAP).

Continue/Update -
update to reflect the
CAAP effort as
appropriate. Merge
with other programs
as noted below.

7.1.2 Participate in
a Property
Assessed
Clean Energy
(PACE)
financing
program
Los Altos has adopted resolutions supporting the
CalFIRST Property Assessed Clean Energy (PACE)
Program. By doing this, Los Altos residents may be
eligible to finance any energy improvements to their
homes—solar panels, water-efficient landscapes, etc.—
on their property tax assessment. This allows the
financing to be extended over multiple years and also
allows a home to be sold with that assessment
assigned to the new owner. Although CalFIRST has
encountered legal challenges to providing these loans
for residential purposes, other opportunities exist. The City will vet the applicability of Cal FIRST alternatives and will participate as appropriate.
-
Community
Development
Department
The City adopted a
Resolution supporting
the PACE program.

Modify - delete this
program and note
PACE financing in
Program 7.1.1.

7.1.3 Promote the
use of solar
energy
This program focuses on promoting solar energy as a
means to increase energy efficiency and promote green
energy alternatives. As part of this program, the City will leverage and promote other state and commercial
initiatives to encourage solar energy, such as grants,
tax credits, and rebates, as they are implemented. (No
design review of solar panels is allowed by law.

Setbacks, height restrictions, etc., are already covered by the Zoning Ordinance.)
-
Community
Development
Department
The City continues to
provide information on
available programs to the
public.

Modify - delete this
program and merge
leveraging and
promoting initiatives
to encourage solar
energy with
Program 7.1.1.
267
Agenda Item # 3.

Existing Programs Review City of Los Altos | D-17
Program Name &
Number
Program
Description Objectives ResponsibleParty Evaluation Modify / Delete / Continue

7.2.1 Implement
energyefficient
regulations
Continue to implement building code and zoning
standards that promote energy efficiency in residential design, layout, construction, and landscaping. The City enforces energy efficiency standards of Title 24 of the California Code of Regulations (California Building
Code Standards), which uses zoning requirements for
lot size, building separation, yards, setbacks,
landscaping, and design review to promote energy
conservation in new development.
-
Community
Development
Department
The City continues to
implement; Building
Code compliance is
mandatory.

Delete - Building
Code compliance is
mandatory.

7.2.2 Monitor and
implement
thresholds and
statutory
requirements
of climate
change
legislation
Monitor the implementation measures of the Global
Warming Solutions Act of 2006 (AB 32) and SB 375,
which requires planning organizations to promote
sustainable communities as part of their regional
transportation plans. The City will implement the
measures as guidance for thresholds and compliance
methods are released by the State.
-
Community
Development
Department
City staff continue to
implement measures,
including the City’s
Climate Action Plan.

Continue - update
to reflect the CAAP
effort as
appropriate.

Program Category 7: Statutory Compliance and Reporting

8.1.1 Develop
annual
housing status
report
Provide an annual status report to the City Council and California Department of Housing and Community
Development (HCD) on the status of the General Plan
housing programs and their implementation as required
by state law.
-
Community
Development
Department
The City continues to
submit Annual Progress
Reports (APRs) to HCD
annually.

Modify - expand to
identify that
reporting will also
address no net loss
requirements as
necessary.

8.2.1 Participate in
the regional
housing needs
determination.

Continue the regional conversation about meeting the
housing needs. Actively participate in the ABAG
Regional Housing Needs Determination. The City will
meet with ABAG staff to provide land use, housing,
employment, and other information related to the RHNA
formula to ensure that the allocation accurately
represents Los Altos’ fair share of the region’s housing needs.
-
Community
Development
Department
The City has continued
to work with ABAG on
the RHNA.

Continue.
268
Agenda Item # 3.

This page is intentionally blank
269
Agenda Item # 3.

Public Participation Summaries City of Los Altos | E-1
Appendix E: Public Participation
Summaries
Contents
Appendix E: Public Participation Summaries............................................. 1 Community Workshop #1.............................................................................................................. 2 Community Workshop #2............................................................................................................18 March 22, 2022 City Council Meeting Summary.........................................................................53 July 7, 2022 City Planning Commission Meeting Summary ....................................................... 55 July 12, 2022 City Council Meeting Summary ............................................................................ 57 270
Agenda Item # 3.

LOS ALTOS HOUSING ELEMENT UPDATE | COMMUNITY WORKSHOP #1 SUMMARY - 1 Community Workshop #1
Format: Zoom Virtual Meeting | January 13, 6:30-8:00pm
The purpose of the Housing Element Update Community Workshop #1 was to provide an overview of the Housing Element process and the components of a Housing Element, share background information and preliminary findings from housing needs, and gather input from meeting participants about critical housing issues, needs and goals for housing in the City of Los Altos. Feedback received will inform the content of future outreach events and will guide the preparation of the Housing Element Update.

The community workshop was held via Zoom on Thursday, January 13, 2022 from 6:30-8:00 pm and was facilitated by City staff and the consultant team (Lisa Wise Consulting, Inc. and Plan to Place). All materials were made available and posted on the project website prior to the meeting.

Approximately 60 members of the public attended the meeting. The meeting agenda is outlined below:

1. Welcome & Introductions

2. Housing Element Basics

3. FAQ’s

4. Community Engagement Overview

5. Preliminary Housing Data

6. Key Planning Considerations

7. Participant Q&A

8. Small Group Discussion + Report Back

9. Closing and Next Steps

ATTENDANCE
Meeting participants: approximately 60 attendees
City Staff
● Laura Simpson – Interim Planning Director
● Sonia Lee – Public Information Officer
Consultant Team
● Lisa Wise Consulting, Inc. – David Bergman, Jennifer Murillo, Stefano Richichi ● Plan to Place – Dave Javid, Paul Kronser
Public Participation Summaries City of Los Altos | E-2 City of Los Altos | E-2 271
Agenda Item # 3.

LOS ALTOS HOUSING ELEMENT UPDATE | COMMUNITY WORKSHOP #1 SUMMARY - 2

WORKSHOP SUMMARY
Laura Simpson opened the meeting by welcoming attendees, introducing the team, giving an agenda overview, and conducted the demographic live poll.

The following is a summary of the results from the demographic poll that was administered at the beginning of the meeting:

Demographic Live Poll (full results in the appendix)

1. Where do you live? (select one)
• 91% live in Los Altos
• 3% live in Santa Clara County but not Los Altos
• 6% live outside of Santa Clara County

2. Where do you work? (select one)
• 31% work In Los Altos (including remote work)
• 11% do not work Los Altos, but in Santa Clara
• 11% work outside Santa Clara
• 39% are retired
• 3% do not work or are looking for work
• 6% do not work and are not looking for work

3. Which of the following describes why you decided to attend tonight’s workshop? (select all that apply)?
● 28% want to know more about the Housing Element Update process. ● 4% want to know more about obtaining housing in Los Altos ● 41% want to support more housing development in Los Altos ● 26% are concerned about more housing development in Los Altos

4. Have you participated in other Housing Element events? ● 32% yes
● 68% no

5. What is your current housing situation?
● 89% own a home
● 8% rent a home
● 3% live with family/friends (I do not own or rent)

6. What type of housing do you live in?
• 79% live in a house
• 15% live in a duplex/townhome/condo
• 3% live in an apartment
• 3% other

7. What is your age?
• 3% 19-25
Public Participation Summaries City of Los Altos | E-3 City of Los Altos | E-3 272
Agenda Item # 3.

LOS ALTOS HOUSING ELEMENT UPDATE | COMMUNITY WORKSHOP #1 SUMMARY - 3 • 8% 26-45
• 44% 46-64
• 44% 65-84

8. Race and Ethnicity (select all that apply)
• 71% White
• 17% other
• 9% Hispanic or LatinX
• 3% Asian

9. Which bracket best describes your household income?
• 15% $49,701 to $82,850
• 3% $82,851 to $117,750
• 24%117,751 to $181,550
• 58% $181,551 or more
After the poll closed, Jennifer Murillo from Lisa Wise Consulting, Inc. (LWC) gave a presentation on the housing element process which included background and purpose, state requirements for housing elements, and the Regional Housing Needs Assessment (RHNA). The presentation also included with an overview of the community engagement process and strategy which included community input to date and upcoming activities for the public to participate in. Jennifer then provided a summary of initial findings and key planning considerations followed by an opportunity for any clarifying questions from the meeting participants through chat, which were answered by the project team. Some of the questions included clarification about the process and results of the polls. To find a list of all questions asked, please see the Appendix.

Following the presentation portion of the workshop, Dave guided workshop participants through an online live poll to gather feedback on housing in Los Altos. This provided attendees a preview of the topics to be covered in the small breakout rooms (see Appendix for the poll results).

Public Participation Summaries City of Los Altos | E-4 City of Los Altos | E-4 273
Agenda Item # 3.

LOS ALTOS HOUSING ELEMENT UPDATE | COMMUNITY WORKSHOP #1 SUMMARY - 4 Prior to breaking into small groups, Dave gave an overview of the small group breakout room logistics and then opened the rooms which participants were randomly assigned. A facilitator and note taker from the project team were assigned to each breakout room.

SMALL GROUP DISCUSSION SUMMARY
The remainder of the meeting was devoted to gathering input from meeting participants through facilitated small group discussions. Feedback was recorded in three breakout rooms on a virtual whiteboard (see snapshot below) in response to the discussion prompts below. The summary below provides a high-level overview of themes that emerged from the small group discussions.

The numbers in parenthesis indicate the number of breakout rooms in which the referenced comment was expressed.

Example of notes taken on virtual whiteboard during the small group discussion Public Participation Summaries City of Los Altos | E-5 City of Los Altos | E-5 274
Agenda Item # 3.

LOS ALTOS HOUSING ELEMENT UPDATE | COMMUNITY WORKSHOP #1 SUMMARY - 5 Example of Menti Poll results on virtual whiteboard during the small group discussion Small Group Discussion Prompts

1. What do you think are the most critical housing issues in Los Altos?

2. What do you think are the housing types most needed in Los Altos?

3. When assessing new housing development that might be built in Los Altos in the next 8 to 10 years, what should be the City’s most important considerations?

4. Is there anything else that you would like to share about why you are here this evening? Any questions, comments, or additional housing opportunities we should be aware of?

5. Do you have any suggestions for what groups should be reached out to, to solicit additional feedback on the Housing Element Update?
Public Participation Summaries City of Los Altos | E-6 City of Los Altos | E-6 275
Agenda Item # 3.

LOS ALTOS HOUSING ELEMENT UPDATE | COMMUNITY WORKSHOP #1 SUMMARY - 6 Main Takeaways
What do you think are the most critical housing issues in Los Altos? • The permit process for ADU’s needs to be improved and expedited from its current state. (2)
• Concerns that with added housing units, there hasn't been thought into the services to support this new population growth and the impacts on surrounding residents/businesses. (2)
• Turning vacant homes throughout the City into rental units and other creative policies should be looked at to provide additional housing. (2)
• The existing zoning policies do not allow for the additional housing units needed to meet RHNA. (1)
• Affordable housing for low and middle income families is needed to support local businesses that currently commute from outside the City/County. (1) • It is important to preserve the R1 – Single Family Zone and explore other zoning areas to add additional housing stock to meet the RHNA numbers. (1) What do you think are the housing types most needed in Los Altos? • Allow for a variety of dense low/middle income housing in places that are less intrusive and can accommodate you families and those who work in Los Altos. (3) • Desire for more ADU’s with a streamlined process. (1) • Affordable multifamily housing located close to transit opportunities is highly desirable. (1)
• Senior housing is desired to accommodate the aging population. (1) When assessing new housing development that might be built in Los Altos in the next 8 to 10 years, what should be the City’s most important considerations? • Keep the charm and quaint feel of Los Altos that many residents have moved to the area for. (2)
• Provide a mixture of affordable housing for those in the service industries including firefighters, City staff, and teachers. (2)
• Focus new housing in areas with transit options and create walkable neighborhoods with access to services. (2)
• Prioritize a housing stock that serves young families, low income, the disabled and seniors. (1)
• Make sure there is a timely entitlement process for building new housing units. (1) • State and local programs should be created to increase affordability without building all new units. (1)
Is there anything else that you would like to share about why you are here this evening? Any questions, comments, or additional housing opportunities we should be aware of? • The City needs to do more outreach than they are currently doing to reach in need populations that may not be captured in the current noticing.

Public Participation Summaries City of Los Altos | E-7 City of Los Altos | E-7 276
Agenda Item # 3.

LOS ALTOS HOUSING ELEMENT UPDATE | COMMUNITY WORKSHOP #1 SUMMARY - 7 • Utilize the data collected to create realistic housing goals and policies that address affordable and diverse housing. (2)
• Don’t compromise the quality of life in Los Altos to meet the number of housing units needed. (2)
• Plan for infrastructure and other needed improvements that come with additional housing and population growth.

Do you have any suggestions for what groups should be reached out to, to solicit additional feedback on the Housing Element Update?
• None noted.

Public Participation Summaries City of Los Altos | E-8 City of Los Altos | E-8 277
Agenda Item # 3.

LOS ALTOS HOUSING ELEMENT UPDATE | COMMUNITY WORKSHOP #1 SUMMARY - 8 Appendix

DEMOGRAPHIC LIVE POLL RESULTS

1. Where do you live?

2. Where do you work?
Public Participation Summaries City of Los Altos | E-9 City of Los Altos | E-9 278
Agenda Item # 3.

LOS ALTOS HOUSING ELEMENT UPDATE | COMMUNITY WORKSHOP #1 SUMMARY - 9

3. Which of the following describes why you decided
to attend tonight’s workshop? (select all that apply)

4. Have you participated in other Housing Element
events?
Public Participation Summaries City of Los Altos | E-10 City of Los Altos | E-10 279
Agenda Item # 3.

LOS ALTOS HOUSING ELEMENT UPDATE | COMMUNITY WORKSHOP #1 SUMMARY - 10

5. What is your current housing situation?

6. What type of housing do you live in?
Public Participation Summaries City of Los Altos | E-11 City of Los Altos | E-11 280
Agenda Item # 3.

LOS ALTOS HOUSING ELEMENT UPDATE | COMMUNITY WORKSHOP #1 SUMMARY - 11

7. What is your age?

8. Race and Ethnicity
Public Participation Summaries City of Los Altos | E-12 City of Los Altos | E-12 281
Agenda Item # 3.

LOS ALTOS HOUSING ELEMENT UPDATE | COMMUNITY WORKSHOP #1 SUMMARY - 12

9. Which bracket best describes your household
income?
Public Participation Summaries City of Los Altos | E-13 City of Los Altos | E-13 282
Agenda Item # 3.

LOS ALTOS HOUSING ELEMENT UPDATE | COMMUNITY WORKSHOP #1 SUMMARY - 13

HOUSING IN LOS ALTOS LIVE POLL RESULTS

1. What do you think are the most critical housing
issues in Los Altos?

2. What do you think are the housing types most
needed in Los Altos?
Rate and
number of new
housing units
getting built
Protections for
renters facing
displacement or
discrimination
Concentration
or segregation
of certain
groups
Down payment
assistance for
first time home
buyers
Financial
assistance for
home
repairs/renovation
Fair housing
issues / access
to quality
housing and
access to
financing
Availability of
housing for
young families
(e.g. 2+
bedrooms)
Public Participation Summaries City of Los Altos | E-14 City of Los Altos | E-14 283
Agenda Item # 3.

LOS ALTOS HOUSING ELEMENT UPDATE | COMMUNITY WORKSHOP #1 SUMMARY - 14

3. When assessing new housing that might be built in
Los Altos in the next 8-10 years, what should be the
City’s most important consideration?

CHAT COMMENTS/QUESTIONS
• Is this the 1st Housing Element Mtg for Los Altos? Plse advise. o Response: This is the first Community Workshop. There have been some pop-ups and small group meetings already.
• Is there a problem with logging on? A friend is having trouble getting into this meeting • Every house is a house!
• Not just single detached homes
• Salim-argue with Websters
• Is there a Middle Eastern/North African category on the race/ethnicity question? This community comprises a large proportion of Los Altos residents - important to consider for future polls o Response: In census terms these ethnicities are racially white White – A person having origins in any of the original peoples of Europe, the Middle East, or North Africa • Will the poll results and presentation be posted online? When? • I am so excited about this process!
• Agree Jeanine!
• Hi Julie! I just heard from Adobe Pet Hospital; they are cutting off all service after 5pm due to inability to staff!
• How many ADUs were permitted in Los Altos in 2021?
• Loved the centerfold ad for the Housing Element in the Town Crier today! Great job Bruce and the HE team!
• We need homes for all different stages of life
Public Participation Summaries City of Los Altos | E-15 City of Los Altos | E-15 284
Agenda Item # 3.

LOS ALTOS HOUSING ELEMENT UPDATE | COMMUNITY WORKSHOP #1 SUMMARY - 15 • I read (on the HE website I believe) about a pop up at Woodland Library but when I went there at the time announced, the library was closed and when I got home the announcement was removed from the website. What happened??
• 1/2 acre or lower income sites?
• multi-family
• Low income sites have to be half an acre or higher Because you can’t afford to build an affordable building on less
• Younger families, workers, diverse cultures all increase our city's vitality and ensure we're a fullattribute City 25 years from now. • Please explain 1/2 acre required for low income? How many units on that? • I still don't see any explanation how this works.
• Could folks who are talking introduce themselves? There are no names on the photos • Will housing in the middle be addressed?
• How are lower income units funded? Does the state provide funding? • I signed up a long time ago for the newsletter/announcements from the HE website. Why have I received nothing except an announcement about tonights meeting? Why aren't the popups announced (maybe a day before)?
• I am answering many of these questions based upon the rhna requirements being imposed on los altos. it is not what I necessarily believe
• nothing about mass transit?
• or bikeability
• I understand that there is a law that dictates what HCD thinks needs to built in LA. My question is, do Los Altos residents want this growth?
• Apparently we do, Barry. Did you look at the poll results? • Barry-I am not convinced most residents want increased growth in density and height • we need this growth
• Anne-self selecting group. fifty people do not a city make • Jeannie-we don't need the growth, we are forced to accept it • I heard about some communities where churches are partnering and providing space on their properties for high density affordable housing- sounds innovative and a win-win. • @David, @Jen, I have been on 100+ zoom meetings without any issues with audio. Most everyone knows how to use Zoom. Why did you choose to introduce a likely totally-new environment of Ring Central?
• It would be great if some of the Los Altos churches wold step up and provide housing, or even safe parking. I hope they do.
• Programs will be key. Programs, programs, programs!
• it would be great if all those supporting more affordable housing if they sell their homes to someone in need at a below market price. That would facilitate more home ownership by those who cannot afford current prices
• Some cities fine owners of ghost houses.
• Hey Jon, I did just that with my second home!!!
• Jeanine-great. wish more folks would do likewise
• I would ask the housing element to address higher density and alternative zoning/uses on church properties and possibly school properties too. Would be nice to see some creative open-minded Public Participation Summaries City of Los Altos | E-16 City of Los Altos | E-16 285
Agenda Item # 3.

LOS ALTOS HOUSING ELEMENT UPDATE | COMMUNITY WORKSHOP #1 SUMMARY - 16 thoughtfulness on that. We need to get much more creative to support building more housing and the extra housing, at higher densities is important. I would like to see us be more aggressive on housing, especially below market rate housing.
• SOOO excited that Los Altos is talking about how to do this! • I would like to see more folks from differernt perspective participate in future meetings • Will presentation and notes be on the website?
• We are still incredibly high-level and vague. I would like to see two or three examples of how to achieve lower income housing
• Our breakout group had different perspectives. But in the end virtually all want more housing. That's representative of the city, I would guess. There were a lot of new faces here tonight. • I would also like to start looking at zoning maps to discuss upzoning Public Participation Summaries City of Los Altos | E-17 City of Los Altos | E-17 286
Agenda Item # 3.

Community Workshop #2
Format: Zoom Virtual Meeting | March 1, 7:00-8:30pm
The purpose of the Housing Element Update Community Workshop #2 was to provide an overview of the Sites Inventory Analysis and gather input from meeting participants about the key screening criteria, key assumptions, and policy considerations that informed the site inventory. Feedback will inform the refinement of the site inventory and will guide the preparation of the Housing Element Update.

The community workshop was held via Zoom on Tuesday, March 1 from 7-8:30 pm and was facilitated by City staff and the consultant team (Lisa Wise Consulting, Inc. and Plan to Place).

All materials were made available and posted on the project website prior to the meeting.