Agenda packet, first session — Los Altos City Council, August 22, 2023 (part 2 of 2)

If, as of the close of any taxable year in the compliance period, after the first year of the credit period, the qualified basis of any building exceeds the qualified basis of that building as of the close of the first year of the credit period, the housing sponsor, to the extent of its tax credit allocation, shall be eligible for a credit on the excess in an amount equal to the applicable percentage determined pursuant to subdivision (c) for the four-year period beginning with the taxable year in which the increase in qualified basis occurs.
(f) The provisions of Section 42(h) of the Internal Revenue Code, relating to limitation on aggregate credit allowable with respect to projects located in a state, shall be modified as follows:
(1) Section 42(h)(2) of the Internal Revenue Code, relating to allocated credit amount to apply to all taxable years ending during or after credit allocation year, does not apply and instead the following provisions apply:

The total amount for the four-year credit period of the housing credit dollars allocated in a calendar year to any building shall reduce the aggregate housing credit dollar amount of the California Tax Credit Allocation Committee for the calendar year in which the allocation is made. (2)  Paragraphs (3), (4), (5), (6)(E)(i)(II), (6)(F), (6)(G), (6)(I), (7), and (8) of Section 42(h) of the Internal Revenue Code, relating to limitation on aggregate credit allowable with respect to projects located in a state, do not apply to this section.
(g)  The aggregate housing credit dollar amount that may be allocated annually by the California Tax Credit Allocation Committee pursuant to this section, Section 12206, and Section 23610.5 shall be an amount equal to the sum of all the following:
(1)  (A)  Seventy million dollars ($70,000,000) for the 2001 calendar year, and, for the 2002 calendar year and each calendar year thereafter, seventy million dollars ($70,000,000) increased by the percentage, if any, by which the Consumer Price Index for the preceding calendar year exceeds the Consumer Price Index for the 2001 calendar year. For the purposes of this paragraph, the term “Consumer Price Index” means the last Consumer Price Index for All Urban Consumers published by the federal Department of Labor.
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(B)  Five hundred million dollars ($500,000,000) for the 2020 calendar year, and up to five hundred million dollars ($500,000,000) for the 2021 calendar year and every year thereafter. Allocations shall only be available pursuant to this subparagraph in the 2021 calendar year and thereafter if the annual Budget Act, or if any bill providing for appropriations related to the Budget Act, specifies an amount to be available for allocation in that calendar year by the California Tax Credit Allocation Committee, and the California Tax Credit Allocation Committee has adopted regulatory reforms aimed at increasing production and containing costs. A housing sponsor receiving a nonfederally subsidized allocation under subdivision (c) shall not be eligible for receipt of the housing credit allocated from the increased amount under this subparagraph. A housing sponsor receiving a nonfederally subsidized allocation under subdivision (c) shall remain eligible for receipt of the housing credit allocated from the credit ceiling amount under subparagraph (A).
(i)  Eligible projects for allocations under this subparagraph include any new building, as defined in Section 42(i)(4) of the Internal Revenue Code, relating to newly constructed buildings, and the regulations promulgated thereunder, excluding rehabilitation expenditures under Section 42(e) of the Internal Revenue Code, relating to rehabilitation expenditures treated as separate new building, and is federally subsidized.
(ii)  Notwithstanding any other provision of this section, for allocations pursuant to this subparagraph for the 2020 calendar year, the California Tax Credit Allocation Committee shall consider projects located throughout the state and shall allocate housing credits, subject to the minimum federal requirements as set forth in Sections 42 and 142 of the Internal Revenue Code, the minimum requirements set forth in Sections 5033 and 5190 of the California Debt Limit Allocation Committee regulations, and the minimum set forth in Section 10326 of the Tax Credit Allocation Committee regulations, for projects that can begin construction within 180 days from award, subject to availability of funds.
(iii)  Notwithstanding any other provision of this section, for allocations pursuant to this subparagraph for the 2021 calendar year and thereafter, the California Tax Credit Allocation Committee shall prescribe regulations, rules, guidelines, or procedures necessary to implement a new allocation methodology that is aimed at increasing production and containing costs. (iv)  Of the amount available pursuant to this subparagraph, and notwithstanding any other requirement of this section, the California Tax Credit Allocation Committee may allocate up to two hundred million dollars ($200,000,000) for housing financed by the California Housing Finance Agency under its Mixed-Income Program.
(2)  The unused housing credit ceiling, if any, for the preceding calendar years.
(3)  The amount of housing credit ceiling returned in the calendar year.

For purposes of this paragraph, the amount of housing credit dollar amount returned in the calendar year equals the housing credit dollar amount previously allocated to any project that does not become a qualified 95 — 85 — Ch. 159
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low-income housing project within the period required by this section or to any project with respect to which an allocation is canceled by mutual consent of the California Tax Credit Allocation Committee and the allocation recipient.
(4)  Five hundred thousand dollars ($500,000) per calendar year for projects to provide farmworker housing, as defined in subdivision (h) of Section 50199.7 of the Health and Safety Code.
(5)  The amount of any unallocated or returned credits under former Sections 17053.14, 23608.2, and 23608.3, as those sections read prior to January 1, 2009, until fully exhausted for projects to provide farmworker housing, as defined in subdivision (h) of Section 50199.7 of the Health and Safety Code.
(h)  The term “compliance period” as defined in Section 42(i)(1) of the Internal Revenue Code, relating to compliance period, is modified to mean, with respect to any building, the period of 30 consecutive taxable years beginning with the first taxable year of the credit period with respect thereto. (i)  Section 42(j) of the Internal Revenue Code, relating to recapture of credit, shall not be applicable and the following requirements of this section shall be set forth in a regulatory agreement between the California Tax Credit Allocation Committee and the housing sponsor, and the regulatory agreement shall be subordinated, when required, to any lien or encumbrance of any banks or other institutional lenders to the project. The regulatory agreement entered into pursuant to subdivision (f) of Section 50199.14 of the Health and Safety Code shall apply, provided that the agreement includes all of the following provisions:
(1)  A term not less than the compliance period.
(2)  A requirement that the agreement be recorded in the official records of the county in which the qualified low-income housing project is located. (3)  A provision stating which state and local agencies can enforce the regulatory agreement in the event the housing sponsor fails to satisfy any of the requirements of this section.
(4)  A provision that the regulatory agreement shall be deemed a contract enforceable by tenants as third-party beneficiaries thereto and that allows individuals, whether prospective, present, or former occupants of the building, who meet the income limitation applicable to the building, the right to enforce the regulatory agreement in any state court. (5)  A provision incorporating the requirements of Section 42 of the Internal Revenue Code, relating to low-income housing credit, as modified by this section.
(6)  A requirement that the housing sponsor notify the California Tax Credit Allocation Committee or its designee if there is a determination by the Internal Revenue Service that the project is not in compliance with Section 42(g) of the Internal Revenue Code, relating to qualified low-income housing project.
(7)  A requirement that the housing sponsor, as security for the performance of the housing sponsor’s obligations under the regulatory agreement, assign the housing sponsor’s interest in rents that it receives 95 Ch. 159 — 86 —
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from the project, provided that until there is a default under the regulatory agreement, the housing sponsor is entitled to collect and retain the rents. (8)  A provision that the remedies available in the event of a default under the regulatory agreement that is not cured within a reasonable cure period include, but are not limited to, allowing any of the parties designated to enforce the regulatory agreement to collect all rents with respect to the project; taking possession of the project and operating the project in accordance with the regulatory agreement until the enforcer determines the housing sponsor is in a position to operate the project in accordance with the regulatory agreement; applying to any court for specific performance; securing the appointment of a receiver to operate the project; or any other relief as may be appropriate.
(j)  (1)  The committee shall allocate the housing credit on a regular basis consisting of two or more periods in each calendar year during which applications may be filed and considered. The committee shall establish application filing deadlines, the maximum percentage of federal and state low-income housing tax credit ceiling that may be allocated by the committee in that period, and the approximate date on which allocations shall be made.

If the enactment of federal or state law, the adoption of rules or regulations, or other similar events prevent the use of two allocation periods, the committee may reduce the number of periods and adjust the filing deadlines, maximum percentage of credit allocated, and the allocation dates. (2)  The committee shall adopt a qualified allocation plan, as provided in Section 42(m)(1) of the Internal Revenue Code, relating to plans for allocation of credit among projects. In adopting this plan, the committee shall comply with the provisions of Sections 42(m)(1)(B) and 42(m)(1)(C) of the Internal Revenue Code, relating to qualified allocation plan and relating to certain selection criteria must be used, respectively. (3)  Notwithstanding Section 42(m) of the Internal Revenue Code, relating to responsibilities of housing credit agencies, the California Tax Credit Allocation Committee shall allocate housing credits in accordance with the qualified allocation plan and regulations, which shall include the following provisions:
(A)  All housing sponsors, as defined by paragraph (3) of subdivision (a), shall demonstrate at the time the application is filed with the committee that the project meets the following threshold requirements:
(i)  The housing sponsor shall demonstrate that there is a need and demand for low-income housing in the community or region for which it is proposed. (ii)  The project’s proposed financing, including tax credit proceeds, shall be sufficient to complete the project and that the proposed operating income shall be adequate to operate the project for the extended use period. (iii)  The project shall have enforceable financing commitments, either construction or permanent financing, for at least 50 percent of the total estimated financing of the project.
(iv)  The housing sponsor shall have and maintain control of the site for the project.
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(v)  The housing sponsor shall demonstrate that the project complies with all applicable local land use and zoning ordinances.
(vi)  The housing sponsor shall demonstrate that the project development team has the experience and the financial capacity to ensure project completion and operation for the extended use period.
(vii)  The housing sponsor shall demonstrate the amount of tax credit that is necessary for the financial feasibility of the project and its viability as a qualified low-income housing project throughout the extended use period, taking into account operating expenses, a supportable debt service, reserves, funds set aside for rental subsidies and required equity, and a development fee that does not exceed a specified percentage of the eligible basis of the project prior to inclusion of the development fee in the eligible basis, as determined by the committee.
(B)  The committee shall give a preference to those projects satisfying all of the threshold requirements of subparagraph (A) if both of the following apply:
(i)  The project serves the lowest income tenants at rents affordable to those tenants.
(ii)  The project is obligated to serve qualified tenants for the longest period.
(C)  In addition to the provisions of subparagraphs (A) and (B), the committee shall use the following criteria in allocating housing credits:
(i)  Projects serving large families in which a substantial number, as defined by the committee, of all residential units are low-income units with three or more bedrooms.
(ii)  Projects providing single-room occupancy units serving very low income tenants.
(iii)  Existing projects that are “at risk of conversion,” as defined by paragraph (6) of subdivision (c).
(iv)  Projects for which a public agency provides direct or indirect long-term financial support for at least 15 percent of the total project development costs or projects for which the owner’s equity constitutes at least 30 percent of the total project development costs. (v)  Projects that provide tenant amenities not generally available to residents of low-income housing projects.
(4)  For purposes of allocating credits pursuant to this section, the committee shall not give preference to any project by virtue of the date of submission of its application.
(D)  Subparagraphs (B) and (C) shall not apply to projects receiving an allocation pursuant to subparagraph (B) of paragraph (1) of subdivision (g). (k)  Section 42(l) of the Internal Revenue Code, relating to certifications and other reports to secretary, shall be modified as follows:

The term “secretary” shall be replaced by the term “Franchise Tax Board.” (l)  In the case in which the credit allowed under this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following year, and succeeding years, if necessary, until the credit has been exhausted.
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(m)  A project that received an allocation of a 1989 federal housing credit dollar amount shall be eligible to receive an allocation of a 1990 state housing credit dollar amount, subject to all of the following conditions:
(1)  The project was not placed in service prior to 1990. (2)  To the extent the amendments made to this section by the Statutes of 1990 conflict with any provisions existing in this section prior to those amendments, the prior provisions of law shall prevail.
(3)  Notwithstanding paragraph (2), a project applying for an allocation under this subdivision shall be subject to the requirements of paragraph (3) of subdivision (j).
(n)  The credit period with respect to an allocation of credit in 1989 by the California Tax Credit Allocation Committee of which any amount is attributable to unallocated credit from 1987 or 1988 shall not begin until after December 31, 1989.
(o)  The provisions of Section 11407(a) of Public Law 101-508, relating to the effective date of the extension of the low-income housing credit, apply to calendar years after 1989.
(p)  The provisions of Section 11407(c) of Public Law 101-508, relating to election to accelerate credit, shall not apply.
(q)  (1)  (A)  For a project that receives a preliminary reservation under this section beginning on or after January 1, 2016, a taxpayer may elect in its application to the California Tax Credit Allocation Committee to sell all or any portion of any credit allowed, subject to subparagraphs (B) and (C).

The taxpayer may, only once, revoke an election to sell pursuant to this subdivision at any time before the California Tax Credit Allocation Committee allocates a final credit amount for the project pursuant to this section, at which point the election shall become irrevocable. (B)  A credit that a taxpayer elects to sell all or a portion of pursuant to this subdivision shall be sold for consideration that is not less than 80 percent of the amount of the credit.
(C)  A taxpayer shall not elect to sell all or any portion of any credit pursuant to this subdivision if the taxpayer did not make that election in its application submitted to the California Tax Credit Allocation Committee. (2)  (A)  The taxpayer that originally received the credit shall report to the California Tax Credit Allocation Committee within 10 days of the sale of the credit, in the form and manner specified by the California Tax Credit Allocation Committee, all required information regarding the purchase and sale of the credit, including the social security or other taxpayer identification number of the unrelated party or parties to whom the credit has been sold, the face amount of the credit sold, and the amount of consideration received by the taxpayer for the sale of the credit.
(B)  The California Tax Credit Allocation Committee shall provide an annual listing to the Franchise Tax Board, in a form and manner agreed upon by the California Tax Credit Allocation Committee and the Franchise Tax Board, of the taxpayers that have sold or purchased a credit pursuant to this subdivision.
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(3)  A credit may be sold pursuant to this subdivision to more than one unrelated party.
(4)  Notwithstanding any other law, the taxpayer that originally received the credit that is sold pursuant to paragraph (1) shall remain solely liable for all obligations and liabilities imposed on the taxpayer by this section with respect to the credit, none of which shall apply to a party to whom the credit has been sold or subsequently transferred. Parties that purchase credits pursuant to paragraph (1) shall be entitled to utilize the purchased credits in the same manner in which the taxpayer that originally received the credit could utilize them.
(5)  A taxpayer shall not sell a credit allowed by this section if the taxpayer was allowed the credit on any tax return of the taxpayer. (r)  The California Tax Credit Allocation Committee may prescribe rules, guidelines, or procedures necessary or appropriate to carry out the purposes of this section, including any guidelines regarding the allocation of the credit allowed under this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the California Tax Credit Allocation Committee pursuant to this section.
(s)  The amendments to this section made by Chapter 1222 of the Statutes of 1993 apply only to taxable years beginning on or after January 1, 1994. (t)  This section shall remain in effect on and after December 1, 1990, for as long as Section 42 of the Internal Revenue Code, relating to low-income housing credit, remains in effect. Any unused credit may continue to be carried forward, as provided in subdivision (l), until the credit has been exhausted.

SEC. 25. Section 17561 of the Revenue and Taxation Code is amended to read:
17561. (a)  Section 469(c)(7) of the Internal Revenue Code, relating to special rules for taxpayers in real property business, shall not apply. (b)  Section 469(d)(2) of the Internal Revenue Code, relating to passive activity credits, is modified to refer to the following credits:
(1)  The credit for research expenses allowed by Section 17052.12. (2)  The credit for certain wages paid (targeted jobs) allowed by Section 17053.7.
(3)  The credit allowed by former Section 17057 (relating to clinical testing expenses).
(4)  The credit for low-income housing allowed by Section 17058. (c)  Section 469(g)(1)(A) of the Internal Revenue Code is modified to provide that if all gain or loss realized on the disposition of the taxpayer’s entire interest in any passive activity (or former passive activity) is recognized, the excess of—
(1)  The sum of—
(A)  Any loss from that activity for that taxable year (determined after application of Section 469(b) of the Internal Revenue Code), plus (B)  Any loss realized on that disposition, over
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(2)  Net income or gain for the taxable year from all passive activities (determined without regard to losses described in paragraph (1)), shall be treated as a loss which is not from a passive activity. (d)  (1)  For purposes of applying the provisions of Section 469(i) of the Internal Revenue Code, relating to the twenty-five thousand dollars ($25,000) offset for rental real estate activities, the dollar limitation specified in Section 469(i)(2) of the Internal Revenue Code, relating to dollar limitation, for the credit allowed under Section 17058, relating to low-income housing, shall not apply.
(2)  The amendments made to this subdivision by the act adding this paragraph shall apply to each taxable year beginning on or after January 1, 2020.
(e)  Section 502 of the Tax Reform Act of 1986 (P.L. 99-514) shall apply. (f)  For taxable years beginning on or after January 1, 1987, the provisions of Section 10212 of Public Law 100-203, relating to treatment of publicly traded partnerships under Section 469 of the Internal Revenue Code, shall be applicable.

SEC. 26. Section 23610.5 of the Revenue and Taxation Code is amended to read:
23610.5. (a)  (1)  There shall be allowed as a credit against the “tax,” defined in Section 23036, a state low-income housing tax credit in an amount equal to the amount determined in subdivision (c), computed in accordance with Section 42 of the Internal Revenue Code, relating to low-income housing credit, except as otherwise provided in this section. (2)  “Taxpayer,” for purposes of this section, means the sole owner in the case of a “C” corporation, the partners in the case of a partnership, and the shareholders in the case of an “S” corporation.
(3)  “Housing sponsor,” for purposes of this section, means the sole owner in the case of a “C” corporation, the partnership in the case of a partnership, and the “S” corporation in the case of an “S” corporation. (b)  (1)  The amount of the credit allocated to any housing sponsor shall be authorized by the California Tax Credit Allocation Committee, or any successor thereof, based on a project’s need for the credit for economic feasibility in accordance with the requirements of this section. (A)  The low-income housing project shall be located in California and shall meet either of the following requirements:
(i)  Except for projects to provide farmworker housing, as defined in subdivision (h) of Section 50199.7 of the Health and Safety Code, that are allocated credits solely under the set-aside described in subdivision (c) of Section 50199.20 of the Health and Safety Code, the project’s housing sponsor has been allocated by the California Tax Credit Allocation Committee a credit for federal income tax purposes under Section 42 of the Internal Revenue Code, relating to low-income housing credit. (ii)  It qualifies for a credit under Section 42(h)(4)(B) of the Internal Revenue Code, relating to special rule where 50 percent or more of building is financed with tax-exempt bonds subject to volume cap. 95 — 91 — Ch. 159
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(B)  The California Tax Credit Allocation Committee shall not require fees for the credit under this section in addition to those fees required for applications for the tax credit pursuant to Section 42 of the Internal Revenue Code, relating to low-income housing credit. The committee may require a fee if the application for the credit under this section is submitted in a calendar year after the year the application is submitted for the federal tax credit.
(C)  (i)  For a project that receives a preliminary reservation of the state low-income housing tax credit, allowed pursuant to subdivision (a), on or after January 1, 2009, the credit shall be allocated to the partners of a partnership owning the project in accordance with the partnership agreement, regardless of how the federal low-income housing tax credit with respect to the project is allocated to the partners, or whether the allocation of the credit under the terms of the agreement has substantial economic effect, within the meaning of Section 704(b) of the Internal Revenue Code, relating to determination of distributive share.
(ii)  To the extent the allocation of the credit to a partner under this section lacks substantial economic effect, any loss or deduction otherwise allowable under this part that is attributable to the sale or other disposition of that partner’s partnership interest made prior to the expiration of the federal credit shall not be allowed in the taxable year in which the sale or other disposition occurs, but shall instead be deferred until and treated as if it occurred in the first taxable year immediately following the taxable year in which the federal credit period expires for the project described in clause (i).
(iii)  This subparagraph shall not apply to a project that receives a preliminary reservation of state low-income housing tax credits under the set-aside described in subdivision (c) of Section 50199.20 of the Health and Safety Code unless the project also receives a preliminary reservation of federal low-income housing tax credits.
(2)  (A)  The California Tax Credit Allocation Committee shall certify to the housing sponsor the amount of tax credit under this section allocated to the housing sponsor for each credit period.
(B)  In the case of a partnership or an “S” corporation, the housing sponsor shall provide a copy of the California Tax Credit Allocation Committee certification to the taxpayer.
(C)  The taxpayer shall, upon request, provide a copy of the certification to the Franchise Tax Board.
(D)  All elections made by the taxpayer pursuant to Section 42 of the Internal Revenue Code, relating to low-income housing credit, shall apply to this section.
(E)  (i)  Except as described in clause (ii) or (iii), for buildings located in designated difficult development areas (DDAs) or qualified census tracts (QCTs), as defined in Section 42(d)(5)(B) of the Internal Revenue Code, relating to increase in credit for buildings in high-cost areas, credits may be allocated under this section in the amounts prescribed in subdivision (c), provided that the amount of credit allocated under Section 42 of the Internal 95 Ch. 159 — 92 —
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Revenue Code, relating to low-income housing credit, is computed on 100 percent of the qualified basis of the building.
(ii)  Notwithstanding clause (i), the California Tax Credit Allocation Committee may allocate the credit for buildings located in DDAs or QCTs that are restricted to having 50 percent of the building’s occupants be special needs households, as defined in the California Code of Regulations by the California Tax Credit Allocation Committee, or receiving an allocation pursuant to subparagraph (B) of paragraph (1) of subdivision (g), even if the taxpayer receives federal credits pursuant to Section 42(d)(5)(B) of the Internal Revenue Code, relating to increase in credit for buildings in high-cost areas, provided that the credit allowed under this section shall not exceed 30 percent of the eligible basis of the building. (iii)  On and after January 1, 2018, notwithstanding clause (i), the California Tax Credit Allocation Committee may allocate the credit pursuant to paragraph (7) of subdivision (c) even if the taxpayer receives federal credits, pursuant to Section 42(d)(5)(B) of the Internal Revenue Code, relating to increase in credit for buildings in high-cost areas. (F)  (i)  The California Tax Credit Allocation Committee may allocate a credit under this section in exchange for a credit allocated pursuant to Section 42(d)(5)(B) of the Internal Revenue Code, relating to increase in credit for buildings in high-cost areas, in amounts up to 30 percent of the eligible basis of a building if the credits allowed under Section 42 of the Internal Revenue Code, relating to low-income housing credit, are reduced by an equivalent amount.
(ii)  An equivalent amount shall be determined by the California Tax Credit Allocation Committee based upon the relative amount required to produce an equivalent state tax credit to the taxpayer. (c)  Section 42(b) of the Internal Revenue Code, relating to applicable percentage: 70 percent present value credit for certain new buildings; 30 percent present value credit for certain other buildings, shall be modified as follows:
(1)  In the case of any qualified low-income building placed in service by the housing sponsor during 1987, the term “applicable percentage” means 9 percent for each of the first three years and 3 percent for the fourth year for new buildings (whether or not the building is federally subsidized) and for existing buildings.
(2)  In the case of any qualified low-income building that receives an allocation after 1989 and is a new building not federally subsidized, the term “applicable percentage” means the following:
(A)  For each of the first three years, the percentage prescribed by the Secretary of the Treasury for new buildings that are not federally subsidized for the taxable year, determined in accordance with the requirements of Section 42(b)(2) of the Internal Revenue Code, relating to temporary minimum credit rate for nonfederally subsidized new buildings, in lieu of the percentage prescribed in Section 42(b)(1)(A) of the Internal Revenue Code.
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(B)  For the fourth year, the difference between 30 percent and the sum of the applicable percentages for the first three years. (3)  In the case of any qualified low-income building that is a new building and is federally subsidized and receiving an allocation pursuant to subparagraph (B) of paragraph (1) of subdivision (g), the term “applicable percentage” means for the first three years, 9 percent of the qualified basis of the building, and for the fourth year, 3 percent of the qualified basis of the building.
(4)  In the case of any qualified low-income building that receives an allocation after 1989 pursuant to subparagraph (A) of paragraph (1) of subdivision (g) and that is a new building that is federally subsidized or that is an existing building that is “at risk of conversion,” the term “applicable percentage” means the following:
(A)  For each of the first three years, the percentage prescribed by the Secretary of the Treasury for new buildings that are federally subsidized for the taxable year.
(B)  For the fourth year, the difference between 13 percent and the sum of the applicable percentages for the first three years. (5)  In the case of any qualified low-income building that receives an allocation pursuant to subparagraph (A) of paragraph (1) of subdivision (g) that meets all of the requirements of subparagraphs (A) through (D), inclusive, the term “applicable percentage” means 30 percent for each of the first three years and 5 percent for the fourth year. A qualified low-income building receiving an allocation under this paragraph is ineligible to also receive an allocation under paragraph (3).
(A)  The qualified low-income building is at least 15 years old. (B)  The qualified low-income building is either:
(i)  Serving households of very low income or extremely low income such that the average maximum household income as restricted, pursuant to an existing regulatory agreement with a federal, state, county, local, or other governmental agency, is not more than 45 percent of the area median gross income, as determined under Section 42 of the Internal Revenue Code, relating to low-income housing credit, adjusted by household size, and a tax credit regulatory agreement is entered into for a period of not less than 55 years restricting the average targeted household income to no more than 45 percent of the area median income.
(ii)  Financed under Section 514, or 521 of the National Housing Act of 1949 (42 U.S.C. Sec. 1485).
(C)  The qualified low-income building would have insufficient credits under paragraphs (2) and (3) to complete substantial rehabilitation due to a low appraised value.
(D)  The qualified low-income building will complete the substantial rehabilitation in connection with the credit allocation herein. (6)  For purposes of this section, the term “at risk of conversion,” with respect to an existing property means a property that satisfies all of the following criteria:
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(A)  The property is a multifamily rental housing development in which at least 50 percent of the units receive governmental assistance pursuant to any of the following:
(i)  New construction, substantial rehabilitation, moderate rehabilitation, property disposition, and loan management set-aside programs, or any other program providing project-based assistance pursuant to Section 8 of the United States Housing Act of 1937, Section 1437f of Title 42 of the United States Code, as amended.
(ii)  The Below-Market-Interest-Rate Program pursuant to Section 221(d)(3) of the National Housing Act, Sections 1715l(d)(3) and (5) of Title 12 of the United States Code.
(iii)  Section 236 of the National Housing Act, Section 1715z-1 of Title 12 of the United States Code.
(iv)  Programs for rent supplement assistance pursuant to Section 101 of the Housing and Urban Development Act of 1965, Section 1701s of Title 12 of the United States Code, as amended.
(v)  Programs pursuant to Section 514 of the Housing Act of 1949, Section 1484 of Title 42 of the United States Code, as amended, and Section 515 of the Housing Act of 1949, Section 1485 of Title 42 of the United States Code, as amended.
(vi)  The low-income housing credit program set forth in Section 42 of the Internal Revenue Code, relating to low-income housing credit. (vii)  Programs for loans or grants administered by the Department of Housing and Community Development.
(B)  The restrictions on rent and income levels will terminate or the federally insured mortgage or rent subsidy contract on the property is eligible for prepayment or termination any time within five years before or after the date of application to the California Tax Credit Allocation Committee. (C)  The entity acquiring the property enters into a regulatory agreement that requires the property to be operated in accordance with the requirements of this section for a period equal to the greater of 55 years or the life of the property.
(D)  The property satisfies the requirements of Section 42(e) of the Internal Revenue Code, relating to rehabilitation expenditures treated as separate new building, except that the provisions of Section 42(e)(3)(A)(ii)(I) shall not apply.
(7)  On and after January 1, 2018, in the case of any qualified low-income building that is (A) farmworker housing, as defined by paragraph (2) of subdivision (h) of Section 50199.7 of the Health and Safety Code, and (B) is federally subsidized, the term “applicable percentage” means for each of the first three years, 20 percent of the qualified basis of the building, and for the fourth year, 15 percent of the qualified basis of the building. (d)  The term “qualified low-income housing project” as defined in Section 42(c)(2) of the Internal Revenue Code, relating to qualified low-income building, is modified by adding the following requirements:
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(1)  The taxpayer shall be entitled to receive a cash distribution from the operations of the project, after funding required reserves, that, at the election of the taxpayer, is equal to:
(A)  An amount not to exceed 8 percent of the lesser of:
(i)  The owner equity, which shall include the amount of the capital contributions actually paid to the housing sponsor and shall not include any amounts until they are paid on an investor note.
(ii)  Twenty percent of the adjusted basis of the building as of the close of the first taxable year of the credit period.
(B)  The amount of the cashflow from those units in the building that are not low-income units. For purposes of computing cashflow under this subparagraph, operating costs shall be allocated to the low-income units using the “floor space fraction,” as defined in Section 42 of the Internal Revenue Code, relating to low-income housing credit.
(C)  Any amount allowed to be distributed under subparagraph (A) that is not available for distribution during the first five years of the compliance period may be accumulated and distributed any time during the first 15 years of the compliance period but not thereafter.
(2)  The limitation on return shall apply in the aggregate to the partners if the housing sponsor is a partnership and in the aggregate to the shareholders if the housing sponsor is an “S” corporation. (3)  The housing sponsor shall apply any cash available for distribution in excess of the amount eligible to be distributed under paragraph (1) to reduce the rent on rent-restricted units or to increase the number of rent-restricted units subject to the tests of Section 42(g)(1) of the Internal Revenue Code, relating to in general.
(e)  The provisions of Section 42(f) of the Internal Revenue Code, relating to definition and special rules relating to credit period, shall be modified as follows:
(1)  The term “credit period” as defined in Section 42(f)(1) of the Internal Revenue Code, relating to credit period defined, is modified by substituting “four taxable years” for “10 taxable years.”
(2)  The special rule for the first taxable year of the credit period under Section 42(f)(2) of the Internal Revenue Code, relating to special rule for 1st year of credit period, shall not apply to the tax credit under this section. (3)  Section 42(f)(3) of the Internal Revenue Code, relating to determination of applicable percentage with respect to increases in qualified basis after 1st year of credit period, is modified to read:

If, as of the close of any taxable year in the compliance period, after the first year of the credit period, the qualified basis of any building exceeds the qualified basis of that building as of the close of the first year of the credit period, the housing sponsor, to the extent of its tax credit allocation, shall be eligible for a credit on the excess in an amount equal to the applicable percentage determined pursuant to subdivision (c) for the four-year period beginning with the later of the taxable years in which the increase in qualified basis occurs.
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Agenda Item # 10.
(f) The provisions of Section 42(h) of the Internal Revenue Code, relating to limitation on aggregate credit allowable with respect to projects located in a state, shall be modified as follows:
(1) Section 42(h)(2) of the Internal Revenue Code, relating to allocated credit amount to apply to all taxable years ending during or after credit allocation year, does not apply and instead the following provisions apply:

The total amount for the four-year credit period of the housing credit dollars allocated in a calendar year to any building shall reduce the aggregate housing credit dollar amount of the California Tax Credit Allocation Committee for the calendar year in which the allocation is made. (2)  Paragraphs (3), (4), (5), (6)(E)(i)(II), (6)(F), (6)(G), (6)(I), (7), and (8) of Section 42(h) of the Internal Revenue Code, relating to limitation on aggregate credit allowable with respect to projects located in a state, do not apply to this section.
(g)  The aggregate housing credit dollar amount that may be allocated annually by the California Tax Credit Allocation Committee pursuant to this section, Section 12206, and Section 17058 shall be an amount equal to the sum of all the following:
(1)  (A)  Seventy million dollars ($70,000,000) for the 2001 calendar year, and, for the 2002 calendar year and each calendar year thereafter, seventy million dollars ($70,000,000) increased by the percentage, if any, by which the Consumer Price Index for the preceding calendar year exceeds the Consumer Price Index for the 2001 calendar year. For the purposes of this paragraph, the term “Consumer Price Index” means the last Consumer Price Index for All Urban Consumers published by the federal Department of Labor.
(B)  Five hundred million dollars ($500,000,000) for the 2020 calendar year, and up to five hundred million dollars ($500,000,000) for the 2021 calendar year and every year thereafter. Allocations shall only be available pursuant to this subparagraph in the 2021 calendar year and thereafter if the annual Budget Act, or if any bill providing for appropriations related to the Budget Act, specifies an amount to be available for allocation in that calendar year by the California Tax Credit Allocation Committee, and the California Tax Credit Allocation Committee has adopted regulatory reforms aimed at increasing production and containing costs. A housing sponsor receiving a nonfederally subsidized allocation under subdivision (c) shall not be eligible for receipt of the housing credit allocated from the increased amount under this subparagraph. A housing sponsor receiving a nonfederally subsidized allocation under subdivision (c) shall remain eligible for receipt of the housing credit allocated from the credit ceiling amount under subparagraph (A).
(i)  Eligible projects for allocations under this subparagraph include any new building, as defined in Section 42(i)(4) of the Internal Revenue Code, relating to newly constructed buildings, and the regulations promulgated thereunder, excluding rehabilitation expenditures under Section 42 (e) of the Internal Revenue Code, relating to rehabilitation expenditures treated as separate new building, and is federally subsidized.
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Agenda Item # 10.
(ii)  Notwithstanding any other provision of this section, for allocations pursuant to this subparagraph for the 2020 calendar year, the California Tax Credit Allocation Committee shall consider projects located throughout the state and shall allocate housing credits, subject to the minimum federal requirements as set forth in Sections 42 and 142 of the Internal Revenue Code, the minimum requirements set forth in Sections 5033 and 5190 of the California Debt Limit Allocation Committee regulations, and the minimum set forth in Section 10326 of the Tax Credit Allocation Committee regulations, for projects that can begin construction within 180 days from award, subject to availability of funds.
(iii)  Notwithstanding any other provision of this section, for allocations pursuant to this subparagraph for the 2021 calendar year and thereafter, the California Tax Credit Allocation Committee shall prescribe regulations, rules, guidelines, or procedures necessary to implement a new allocation methodology that is aimed at increasing production and containing costs. (iv)  Of the amount available pursuant to this subparagraph, and notwithstanding any other requirement of this section, the California Tax Credit Allocation Committee may allocate up to two hundred million dollars ($200,000,000) for housing financed by the California Housing Finance Agency under its Mixed-Income Program.
(2)  The unused housing credit ceiling, if any, for the preceding calendar years.
(3)  The amount of housing credit ceiling returned in the calendar year.

The requirements of this section shall be set forth in a regulatory agreement between the California Tax Credit Allocation Committee and 95 Ch. 159 — 98 —
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Agenda Item # 10.
the housing sponsor, and the regulatory agreement shall be subordinated, when required, to any lien or encumbrance of any banks or other institutional lenders to the project. The regulatory agreement entered into pursuant to subdivision (f) of Section 50199.14 of the Health and Safety Code shall apply, provided that the agreement includes all of the following provisions:
(1)  A term not less than the compliance period.
(2)  A requirement that the agreement be recorded in the official records of the county in which the qualified low-income housing project is located. (3)  A provision stating which state and local agencies can enforce the regulatory agreement in the event the housing sponsor fails to satisfy any of the requirements of this section.
(4)  A provision that the regulatory agreement shall be deemed a contract enforceable by tenants as third-party beneficiaries thereto and that allows individuals, whether prospective, present, or former occupants of the building, who meet the income limitation applicable to the building, the right to enforce the regulatory agreement in any state court. (5)  A provision incorporating the requirements of Section 42 of the Internal Revenue Code, relating to low-income housing credit, as modified by this section.
(6)  A requirement that the housing sponsor notify the California Tax Credit Allocation Committee or its designee if there is a determination by the Internal Revenue Service that the project is not in compliance with Section 42(g) of the Internal Revenue Code, relating to qualified low-income housing project.
(7)  A requirement that the housing sponsor, as security for the performance of the housing sponsor’s obligations under the regulatory agreement, assign the housing sponsor’s interest in rents that it receives from the project, provided that until there is a default under the regulatory agreement, the housing sponsor is entitled to collect and retain the rents. (8)  A provision that the remedies available in the event of a default under the regulatory agreement that is not cured within a reasonable cure period include, but are not limited to, allowing any of the parties designated to enforce the regulatory agreement to collect all rents with respect to the project; taking possession of the project and operating the project in accordance with the regulatory agreement until the enforcer determines the housing sponsor is in a position to operate the project in accordance with the regulatory agreement; applying to any court for specific performance; securing the appointment of a receiver to operate the project; or any other relief as may be appropriate.
(j)  (1)  The committee shall allocate the housing credit on a regular basis consisting of two or more periods in each calendar year during which applications may be filed and considered. The committee shall establish application filing deadlines, the maximum percentage of federal and state low-income housing tax credit ceiling that may be allocated by the committee in that period, and the approximate date on which allocations shall be made.

If the enactment of federal or state law, the adoption of rules or regulations, or other similar events prevent the use of two allocation periods, the 95 — 99 — Ch. 159
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Agenda Item # 10.
committee may reduce the number of periods and adjust the filing deadlines, maximum percentage of credit allocated, and allocation dates. (2)  The committee shall adopt a qualified allocation plan, as provided in Section 42(m)(1) of the Internal Revenue Code, relating to plans for allocation of credit among projects. In adopting this plan, the committee shall comply with the provisions of Sections 42(m)(1)(B) and 42(m)(1)(C) of the Internal Revenue Code, relating to qualified allocation plan and relating to certain selection criteria must be used, respectively. (3)  Notwithstanding Section 42(m) of the Internal Revenue Code, relating to responsibilities of housing credit agencies, the California Tax Credit Allocation Committee shall allocate housing credits in accordance with the qualified allocation plan and regulations, which shall include the following provisions:
(A)  All housing sponsors, as defined by paragraph (3) of subdivision (a), shall demonstrate at the time the application is filed with the committee that the project meets the following threshold requirements:
(i)  The housing sponsor shall demonstrate there is a need and demand for low-income housing in the community or region for which it is proposed. (ii)  The project’s proposed financing, including tax credit proceeds, shall be sufficient to complete the project and that the proposed operating income shall be adequate to operate the project for the extended use period. (iii)  The project shall have enforceable financing commitments, either construction or permanent financing, for at least 50 percent of the total estimated financing of the project.
(iv)  The housing sponsor shall have and maintain control of the site for the project.
(v)  The housing sponsor shall demonstrate that the project complies with all applicable local land use and zoning ordinances.
(vi)  The housing sponsor shall demonstrate that the project development team has the experience and the financial capacity to ensure project completion and operation for the extended use period.
(vii)  The housing sponsor shall demonstrate the amount of tax credit that is necessary for the financial feasibility of the project and its viability as a qualified low-income housing project throughout the extended use period, taking into account operating expenses, a supportable debt service, reserves, funds set aside for rental subsidies and required equity, and a development fee that does not exceed a specified percentage of the eligible basis of the project prior to inclusion of the development fee in the eligible basis, as determined by the committee.
(B)  The committee shall give a preference to those projects satisfying all of the threshold requirements of subparagraph (A) if both of the following apply:
(i)  The project serves the lowest income tenants at rents affordable to those tenants.
(ii)  The project is obligated to serve qualified tenants for the longest period.
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Agenda Item # 10.
(C)  In addition to the provisions of subparagraphs (A) and (B), the committee shall use the following criteria in allocating housing credits:
(i)  Projects serving large families in which a substantial number, as defined by the committee, of all residential units are low-income units with three or more bedrooms.
(ii)  Projects providing single-room occupancy units serving very low income tenants.
(iii)  Existing projects that are “at risk of conversion,” as defined by paragraph (6) of subdivision (c).
(iv)  Projects for which a public agency provides direct or indirect long-term financial support for at least 15 percent of the total project development costs or projects for which the owner’s equity constitutes at least 30 percent of the total project development costs. (v)  Projects that provide tenant amenities not generally available to residents of low-income housing projects.
(D)  Subparagraph (B) and (C) shall not apply to projects receiving an allocation pursuant to subparagraph (B) of paragraph (1) of subdivision (g). (4)  For purposes of allocating credits pursuant to this section, the committee shall not give preference to any project by virtue of the date of submission of its application except to break a tie when two or more of the projects have an equal rating.
(5)  Not less than 20 percent of the low-income housing tax credits available annually under this section, Section 12206, and Section 17058 shall be set aside for allocation to rural areas as defined in Section 50199.21 of the Health and Safety Code. Any amount of credit set aside for rural areas remaining on or after October 31 of any calendar year shall be available for allocation to any eligible project. No amount of credit set aside for rural areas shall be considered available for any eligible project so long as there are eligible rural applications pending on October 31.
(k)  Section 42(l) of the Internal Revenue Code, relating to certifications and other reports to secretary, shall be modified as follows:

The term “secretary” shall be replaced by the term “Franchise Tax Board.” (l)  In the case in which the credit allowed under this section exceeds the “tax,” the excess may be carried over to reduce the “tax” in the following year, and succeeding years, if necessary, until the credit has been exhausted. (m)  A project that received an allocation of a 1989 federal housing credit dollar amount shall be eligible to receive an allocation of a 1990 state housing credit dollar amount, subject to all of the following conditions:
(1)  The project was not placed in service prior to 1990. (2)  To the extent the amendments made to this section by the Statutes of 1990 conflict with any provisions existing in this section prior to those amendments, the prior provisions of law shall prevail.
(3)  Notwithstanding paragraph (2), a project applying for an allocation under this subdivision shall be subject to the requirements of paragraph (3) of subdivision (j).
(n)  The credit period with respect to an allocation of credit in 1989 by the California Tax Credit Allocation Committee of which any amount is 95 — 101 — Ch. 159
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Agenda Item # 10.
attributable to unallocated credit from 1987 or 1988 shall not begin until after December 31, 1989.
(o)  The provisions of Section 11407(a) of Public Law 101-508, relating to the effective date of the extension of the low-income housing credit, apply to calendar years after 1989.
(p)  The provisions of Section 11407(c) of Public Law 101-508, relating to election to accelerate credit, shall not apply.
(q)  (1)  A corporation may elect to assign any portion of any credit allowed under this section to one or more affiliated corporations for each taxable year in which the credit is allowed. For purposes of this subdivision, “affiliated corporation” has the meaning provided in subdivision (b) of Section 25110, as that section was amended by Chapter 881 of the Statutes of 1993, as of the last day of the taxable year in which the credit is allowed, except that “100 percent” is substituted for “more than 50 percent” wherever it appears in the section, as that section was amended by Chapter 881 of the Statutes of 1993, and “voting common stock” is substituted for “voting stock” wherever it appears in the section, as that section was amended by Chapter 881 of the Statutes of 1993.
(2)  The election provided in paragraph (1):
(A)  May be based on any method selected by the corporation that originally receives the credit.
(B)  Shall be irrevocable for the taxable year the credit is allowed, once made.
(C)  May be changed for any subsequent taxable year if the election to make the assignment is expressly shown on each of the returns of the affiliated corporations that assign and receive the credits. (r)  (1)  (A)  For a project that receives a preliminary reservation under this section beginning on or after January 1, 2016, a taxpayer may elect in its application to the California Tax Credit Allocation Committee to sell all or any portion of any credit allowed, subject to subparagraphs (B) and (C).

The taxpayer may, only once, revoke an election to sell pursuant to this subdivision at any time before the California Tax Credit Allocation Committee allocates a final credit amount for the project pursuant to this section, at which point the election shall become irrevocable. (B)  A credit that a taxpayer elects to sell all or a portion of pursuant to this subdivision shall be sold for consideration that is not less than 80 percent of the amount of the credit.
(C)  A taxpayer shall not elect to sell all or any portion of any credit pursuant to this subdivision if the taxpayer did not make that election in its application submitted to the California Tax Credit Allocation Committee. (2)  (A)  The taxpayer that originally received the credit shall report to the California Tax Credit Allocation Committee within 10 days of the sale of the credit, in the form and manner specified by the California Tax Credit Allocation Committee, all required information regarding the purchase and sale of the credit, including the social security or other taxpayer identification number of the unrelated party or parties to whom the credit has been sold, 95 Ch. 159 — 102 —
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Agenda Item # 10.
the face amount of the credit sold, and the amount of consideration received by the taxpayer for the sale of the credit.
(B)  The California Tax Credit Allocation Committee shall provide an annual listing to the Franchise Tax Board, in a form and manner agreed upon by the California Tax Credit Allocation Committee and the Franchise Tax Board, of the taxpayers that have sold or purchased a credit pursuant to this subdivision.
(3)  A credit may be sold pursuant to this subdivision to more than one unrelated party.
(4)  Notwithstanding any other law, the taxpayer that originally received the credit that is sold pursuant to paragraph (1) shall remain solely liable for all obligations and liabilities imposed on the taxpayer by this section with respect to the credit, none of which shall apply to a party to whom the credit has been sold or subsequently transferred. Parties that purchase credits pursuant to paragraph (1) shall be entitled to utilize the purchased credits in the same manner in which the taxpayer that originally received the credit could utilize them.
(5)  A taxpayer shall not sell a credit allowed by this section if the taxpayer was allowed the credit on any tax return of the taxpayer. (s)  The California Tax Credit Allocation Committee may prescribe rules, guidelines, or procedures necessary or appropriate to carry out the purposes of this section, including any guidelines regarding the allocation of the credit allowed under this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the California Tax Credit Allocation Committee pursuant to this section.
(t)  Any unused credit may continue to be carried forward, as provided in subdivision (l), until the credit has been exhausted. (u)  This section shall remain in effect on and after December 1, 1990, for as long as Section 42 of the Internal Revenue Code, relating to low-income housing credit, remains in effect.
(v)  The amendments to this section made by Chapter 1222 of the Statutes of 1993 shall apply only to taxable years beginning on or after January 1, 1994, except that paragraph (1) of subdivision (q), as amended, shall apply to taxable years beginning on or after January 1, 1993.

SEC. 27. Section 24692 of the Revenue and Taxation Code is amended to read:
24692. (a)  Section 469 of the Internal Revenue Code, relating to passive activity losses and credits limited, shall apply, except as otherwise provided. (b)  Section 469(c)(7) of the Internal Revenue Code, relating to special rules for taxpayers in real property business, shall not apply. (c)  Section 469(d)(2) of the Internal Revenue Code, relating to passive activity credits, is modified to refer to the following credits:
(1)  The credit for research expenses allowed by Section 23609. (2)  The credit for clinical testing expenses allowed by Section 23609.5. (3)  The credit for low-income housing allowed by Section 23610.5. 95 — 103 — Ch. 159
236
Agenda Item # 10.
(4)  The credit for certain wages paid (targeted jobs) allowed by Section 23621.
(d)  Section 469(g)(1)(A) of the Internal Revenue Code is modified to provide that if all gain or loss realized on the disposition of the taxpayer’s entire interest in any passive activity (or former passive activity) is recognized, the excess of—
(1)  The sum of—
(A)  Any loss from that activity for that taxable year (determined after application of Section 469(b) of the Internal Revenue Code), plus (B)  Any loss realized on that disposition, over
(2)  Net income or gain for the taxable year from all passive activities (determined without regard to losses described in paragraph (1)), shall be treated as a loss which is not from a passive activity. (e)  (1)  For purposes of applying Section 469(i) of the Internal Revenue Code, relating to the twenty-five thousand dollars ($25,000) offset for rental real estate activities, the dollar limitation specified in Section 469(i)(2) of the Internal Revenue Code, relating to dollar limitation, for the credit allowed under Section 23610.5, relating to low-income housing, shall not apply. (2)  The amendments made to this subdivision by the act adding this paragraph shall apply to each taxable year beginning on or after January 1, 2020.
(f)  Section 502 of the Tax Reform Act of 1986 (Public Law 99-514) shall apply.
(g)  For each taxable year beginning on or after January 1, 1987, Section 10212 of Public Law 100-203, relating to treatment of publicly traded partnerships under Section 469 of the Internal Revenue Code, shall apply, except as otherwise provided.
(h)  The amendments to Section 469(k) of the Internal Revenue Code made by Section 2004 of Public Law 100-647, relating to separate application of section in case of publicly traded partnerships, shall apply to each taxable year beginning on or after January 1, 1990, except as otherwise provided.

SEC. 28. Section 8256 of the Welfare and Institutions Code is amended to read:
8256. (a)  Agencies and departments administering state programs created on or after July 1, 2017, shall collaborate with the coordinating council to adopt guidelines and regulations to incorporate core components of Housing First.
(b)  By July 1, 2019, except as otherwise provided in subdivision (c), agencies and departments administering state programs in existence prior to July 1, 2017, shall collaborate with the coordinating council to revise or adopt guidelines and regulations that incorporate the core components of Housing First, if the existing guidelines and regulations do not already incorporate the core components of Housing First.
(c)  (1)  An agency or department that administers programs that fund recovery housing shall comply with the requirements of subdivision (b) by July 1, 2020.
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Agenda Item # 10.
(2)  An agency or department that administers programs that fund recovery housing shall additionally do both of the following:
(A)  Consult with the Legislature, the Homeless Coordinating and Financing Council, the Business, Consumer Services, and Housing Agency, and other stakeholders between July 1, 2019, and July 1, 2020, to identify ways to improve the provision of housing to individuals who receive funding from that agency or department, consistent with the applicable requirements of state law.
(B)  By March 1, 2020, submit a report to the Senate Committee on Budget and Fiscal Review and the Assembly Committee on Budget on its efforts to comply with Housing First specifically and to improve the provision of housing to individuals who receive housing assistance from the agency or department generally.
(3)  (A)  For purposes of this subdivision, “recovery housing” means sober living facilities and programs that provide housing in an abstinence-focused and peer-supported community if participation is voluntary, unless that participation is pursuant to a court order or is a condition of release for individuals under the jurisdiction of a county probation department of the Department of Corrections and Rehabilitation. (B)  A recovery housing program shall comply with the core components of Housing First, other than those components described in paragraphs (5) through (7), inclusive, of subdivision (b) of Section 8255.

SEC. 29. (a)  Notwithstanding Section 13340 of the Government Code, there is hereby continuously appropriated, without regard to fiscal years, the sum of five hundred million dollars ($500,000,000) from the General Fund to the Department of Housing and Community Development. The moneys appropriated pursuant to this section shall be transferred to the Self-Help Housing Fund established pursuant to Section 50697.1 of the Health and Safety Code, based on the following schedule:
(1)  For the 2019–20 fiscal year, two hundred million dollars ($200,000,000).
(2)  For the 2020–21 fiscal year, ninety-five million dollars ($95,000,000). (3)  For the 2021–22 fiscal year, one hundred twenty million dollars ($120,000,000).
(4)  For the 2022–23 fiscal year, eighty-five million dollars ($85,000,000). (b)  Notwithstanding Section 50697.1 of the Health and Safety Code, the Department of Housing and Community Development shall transfer the moneys appropriated pursuant to subdivision (a) to the California Housing Finance Agency, to be used to finance low and moderate income housing. (c)  The Director of Finance may change the release of funds scheduled in subparagraphs (1) through (4), inclusive, of subdivision (a), if deemed necessary. The director shall notify the Chairperson of the Joint Legislative Budget Committee, or the chairpersons’s designee, of the director’s intent to notify the Controller of the necessity to change the release of funds scheduled in paragraphs (1) through (4), inclusive, of subdivision (a). The total amount appropriated shall not be greater or lesser than the amount 95 — 105 — Ch. 159
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Agenda Item # 10.
appropriated in subdivision (a). The Controller shall make the funds available to the department not sooner than five days after receipt of this notification.

SEC. 30. The Legislature finds and declares that Section 4 of this act, amending Section 65585 of, and Sections 5 and 6 of this act, adding Sections 65589.9 and 65589.11 to, the Government Code, address a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Sections 4, 5, and 6 of this act apply to all cities, including charter cities.

SEC. 31. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.

SEC. 32. This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.

O
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Agenda Item # 10.

California Department of Housing and Community Development Low Barrier Navigation Center By Right Processing
Government Code Sections 65660, 65664, and 65666
(AB 101, Chapter 159, Statutes of 2019)
Fact Sheet
Introduction
AB 101 requires a Low Barrier Navigation Center (LBNC) be a use by right in areas zoned for mixed use and nonresidential zones permitting multifamily uses if it meets specified requirements, including:
• Access to permanent housing.
• Use of a coordinated entry system (i.e. Homeless Management Information System). • Use of Housing First according to Welfare and Institutions Code section 8255. (Gov.

Code, § 65662.)
A LBNC is defined as a Housing First, low barrier, temporary, service-enriched shelter focused on helping homeless individuals and families to quickly obtain permanent housing. Low barrier includes best practices to reduce barriers to entry, such as allowing partners, pets, storage of personal items, and privacy. (Gov. Code, § 65660.).

Highlights
• LBNC shall be a use by right as defined
by Government Code section 65583.2,
subdivision (i).
• A local government is required to notify
the developer whether the application is
complete within 30 days of receipt of an
application.
• Within 60 days of receipt of a completed
application, the local jurisdiction shall act
upon its review of the application.
• New provisions under AB 101 are in addition to current housing element law regarding planning and approval for emergency shelters and transitional and by right permanent supportive housing.
• This law applies to all cities and counties, including charter cities and counties.

Additional Resources
For the full text and requirements of AB 101 - Low Barrier Navigation Center, visit California’s legislative information website at http://leginfo.legislature.ca.gov/. If you have any questions or would like additional information or technical assistance, please email Divya Ram at [email protected].

Excerpt from Government Code
Section 65583.2(i)
“use by right” shall mean that the local
government’s review of the owner-occupied
or multifamily residential use may not require
a conditional use permit, planned unit
development permit, or other discretionary
local government review or approval that
would constitute a “project” for purposes of
Division 13 (commencing with Section
21000) of the Public Resources Code
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Agenda Item # 10.

Low-Barrier Navigation Center Checklist
California planning and zoning law was updated in July of 2019 with the passing of Assembly Bill (AB) 101 (2019).

AB 101 amended Article 11 (commencing with Section 65660 of the California Government Code) pertaining to low-barrier navigation center regulations and prescribes the following:
• Provides a “by-right” process and expedited review for low-barrier navigation centers in certain types of zones.
• Prohibits local governments from requiring a conditional-use permit or other discretionary approval of low-barrier navigation centers in mixed-use and nonresidential zones permitting multifamily uses if certain operational standards are met.

The set of questions below will allow jurisdictions to determine whether updates to their zoning regulations are needed for consistency with current state regulations.

NUMBER QUESTION YES NO UPDATES NEEDED
1 Does the current ordinance allow low barrier navigation centers as a by-right use in all zones where mixed-use is permitted and nonresidential zones where multifamily
uses are permitted?
- - If no is checked
2 Does the current ordinance allow low barrier navigation centers as a by-right use for the types of zones
described above where all the following requirements
are met?
a) Connected Services. It offers services to connect
people to permanent housing through a
services plan that identifies services staffing.
b) Coordinated Entry System. It is linked to a
coordinated entry system, so that staff in the
interim facility or staff who co-locate in the
facility may conduct assessments and provide
services to connect people to permanent
housing. “Coordinated entry system” means a
centralized or coordinated assessment system
developed pursuant to Section 576.400(d) or
Section 578.7(a)(8), as applicable, of Title 24 of
the Code of Federal Regulations, as those
sections read on January 1, 2020, and any
- - If no is checked
241
Agenda Item # 10.
related requirements, designed to coordinate
program participant intake, assessment, and
referrals.
c) Code Compliant. It complies with Chapter 6.5
(commencing with Section 8255) of Division 8
of the Welfare and Institutions Code.
d) Homeless Management Information System. It
has a system for entering information regarding
client stays, client demographics, client income,
and exit destination through the local Homeless
Management Information System, as defined by
Section 578.3 of Title 24 of the Code of Federal
Regulations.
3 Does the current ordinance define low-barrier
navigation centers as follows?
Low-Barrier Navigation Centers. A housing-first, lowbarrier, service-enriched shelter focused on moving people into permanent housing that provides temporary
living facilities while case managers connect individuals experiencing homelessness to income, public benefits,
health services, shelter, and housing. “Low barrier”
means best practices to reduce barriers to entry, and
may include, but is not limited to, the following:

1. The presence of partners if it is not a
population-specific site, such as for survivors of
domestic violence or sexual assault, women, or
youth.

2. Pets.

3. The storage of possessions.

4. Privacy, such as partitions around beds in a
dormitory setting or in larger rooms containing
more than two beds, or private rooms.

5. “Use by-right” has the meaning defined in
subdivision (i) of Section 65583.2. Division 13
(commencing with Section 21000) of the
California Public Resources Code shall not apply
to actions taken by a public agency to lease,
convey, or encumber land owned by a public
agency, or to facilitate the lease, conveyance, or
encumbrance of land owned by a public agency,
or to provide financial assistance to, or
otherwise approve, a Low-Barrier Navigation
Center constructed or allowed by this section.
- - If no is checked
242
Agenda Item # 10.

Assembly Bill No. 2162
CHAPTER 753
An act to amend Section 65583 of, and to add Article 11 (commencing with Section 65650) to Chapter 3 of Division 1 of Title 7 of, the Government Code, relating to land use.
[Approved by Governor September 26, 2018. Filed with
Secretary of State September 26, 2018.]
legislative counsel’s digest
AB 2162, Chiu. Planning and zoning: housing development: supportive housing.

The Planning and Zoning Law requires the legislative body of each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city that includes, among other mandatory elements, a housing element. That law requires the housing element to contain, among other things, an assessment of housing needs and an inventory of resources and constraints relevant to meeting those needs and a program that sets forth a schedule of actions during the planning period, each with a timeline for implementation. That law specifies that transitional housing and supportive housing are a residential use of property, subject only to those restrictions that apply to other residential dwellings of the same type in the same zone.

This bill would make a nonsubstantive change to this requirement.

The Planning and Zoning Law requires the rezoning of sites identified in the inventory of sites by specific deadlines where the inventory does not identify adequate sites to accommodate the need for groups of all household income levels. That law further requires this rezoning to accommodate 100% of the need for housing for very low and low-income households, as specified, on sites zoned to permit owner-occupied and rental multifamily residential use by right during the planning period and defines the term “use by right” for these purposes.

This bill would require that supportive housing be a use by right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses, if the proposed housing development meets specified criteria, and would require a local government to approve, within specified periods, a supportive housing development that complies with these requirements. The bill would require that a developer of supportive housing provide the planning agency with a plan for providing supportive services, with documentation demonstrating that supportive services will be provided onsite to residents in the project and describing those services, as provided. The bill would prohibit the local government from imposing any minimum parking requirement for units occupied by 93 STATE OF CALIFORNIA

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supportive housing residents if the development is located within ½ mile of a public transit stop. The bill would specify that its provisions do not (1) preclude or limit the ability of a developer to seek a density bonus from the local government or (2) expand or contract the authority of a local government to adopt or amend an ordinance, charter, general plan, specific plan, resolution, or other land use policy or regulation that promotes the development of supportive housing.

The bill would include findings that the changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect.

CEQA does not apply to the ministerial approval of projects.

This bill, by authorizing supportive housing as a use by right under certain circumstances, would expand the exemption for the ministerial approval of projects under CEQA.

By adding to the duties of local planning officials, this bill would impose a state-mandated local program.

This bill would incorporate additional changes to Section 65583 of the Government Code proposed by AB 686 to be operative only if this bill and AB 686 are enacted and this bill is enacted last.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

The people of the State of California do enact as follows:

SECTION 1. The Legislature finds and declares the following:
(a)  California’s homeless population increased by over 16,000 from 2016 to 2017, to 134,278 Californians experiencing homelessness at any point in time. Two to three times this number experienced homelessness during the course of last year. Twenty-five percent of the nation’s total homeless population and almost half of the nation’s unsheltered population reside in California. California now has one of the highest rates of homelessness per resident, twice as high as the national average.
(b)  Addressing homelessness is urgent, as communities across the state face public health emergencies, including widespread Hepatitis A infection among residents experiencing homelessness in several major cities, higher mortality among homeless people with HIV and AIDS, and early mortality among people experiencing chronic homelessness.
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(c)  Chronic patterns of homelessness—homelessness lasting at least a year or repeatedly over three years—are on the rise in California, whereas decreasing elsewhere. As of 2017, 42 percent of those experiencing chronic homelessness nationwide live in California. The vast majority of these individuals and families have lived in California since well before becoming homeless.
(d)  Evidence shows supportive housing—an affordable rental with intensive services promoting housing stability—works to reduce chronic homelessness. As a result, the Legislature has invested in supportive housing, including the No Place Like Home Program, which will generate $2 billion in revenue bonds to build supportive housing for homeless Californians with serious mental illness.
(e)  Studies reveal supportive housing benefits communities by reducing homelessness locally, addressing blight, and increasing property values.

Yet one of the barriers to creating supportive housing has been local delays or denials of applications to build supportive housing, based on subjective local planning standards. Delays or denials of building applications add to the costs and timeline of development, affecting the effectiveness of state dollars.
(f) Given the urgent need to provide supportive housing to Californians experiencing chronic homelessness, streamlining and expediting the process of approving supportive housing applications will offer housing opportunities in communities with few or no opportunities to exit chronic homelessness.

Further, it will promote progress in addressing the growing crisis of homelessness the Legislature intended through recent initiatives.

SEC. 2. Section 65583 of the Government Code is amended to read:
65583. The housing element shall consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing. The housing element shall identify adequate sites for housing, including rental housing, factory-built housing, mobilehomes, and emergency shelters, and shall make adequate provision for the existing and projected needs of all economic segments of the community. The element shall contain all of the following:
(a)  An assessment of housing needs and an inventory of resources and constraints relevant to the meeting of these needs. The assessment and inventory shall include all of the following:
(1)  An analysis of population and employment trends and documentation of projections and a quantification of the locality’s existing and projected housing needs for all income levels, including extremely low income households, as defined in subdivision (b) of Section 50105 and Section 50106 of the Health and Safety Code. These existing and projected needs shall include the locality’s share of the regional housing need in accordance with Section 65584. Local agencies shall calculate the subset of very low income households allotted under Section 65584 that qualify as extremely low income households. The local agency may either use available census data to calculate the percentage of very low income households that qualify 93 — 3 — Ch. 753
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as extremely low income households or presume that 50 percent of the very low income households qualify as extremely low income households. The number of extremely low income households and very low income households shall equal the jurisdiction’s allocation of very low income households pursuant to Section 65584.
(2)  An analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition.
(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.
(4)  (A)  The identification of a zone or zones where emergency shelters are allowed as a permitted use without a conditional use or other discretionary permit. The identified zone or zones shall include sufficient capacity to accommodate the need for emergency shelter identified in paragraph (7), except that each local government shall identify a zone or zones that can accommodate at least one year-round emergency shelter. If the local government cannot identify a zone or zones with sufficient capacity, the local government shall include a program to amend its zoning ordinance to meet the requirements of this paragraph within one year of the adoption of the housing element. The local government may identify additional zones where emergency shelters are permitted with a conditional use permit. The local government shall also demonstrate that existing or proposed permit processing, development, and management standards are objective and encourage and facilitate the development of, or conversion to, emergency shelters. Emergency shelters may only be subject to those development and management standards that apply to residential or commercial development within the same zone except that a local government may apply written, objective standards that include all of the following:
(i)  The maximum number of beds or persons permitted to be served nightly by the facility.
(ii)  Off-street parking based upon demonstrated need, provided that the standards do not require more parking for emergency shelters than for other residential or commercial uses within the same zone.
(iii)  The size and location of exterior and interior onsite waiting and client intake areas.
(iv)  The provision of onsite management.
(v)  The proximity to other emergency shelters, provided that emergency shelters are not required to be more than 300 feet apart. (vi)  The length of stay.
(vii)  Lighting.
(viii)  Security during hours that the emergency shelter is in operation. (B)  The permit processing, development, and management standards applied under this paragraph shall not be deemed to be discretionary acts 93 Ch. 753 — 4 —
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within the meaning of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). (C)  A local government that can demonstrate to the satisfaction of the department the existence of one or more emergency shelters either within its jurisdiction or pursuant to a multijurisdictional agreement that can accommodate that jurisdiction’s need for emergency shelter identified in paragraph (7) may comply with the zoning requirements of subparagraph (A) by identifying a zone or zones where new emergency shelters are allowed with a conditional use permit.
(D)  A local government with an existing ordinance or ordinances that comply with this paragraph shall not be required to take additional action to identify zones for emergency shelters. The housing element must only describe how existing ordinances, policies, and standards are consistent with the requirements of this paragraph.
(5)  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, local processing and permit procedures, and any locally adopted ordinances that directly impact the cost and supply of residential development. The analysis shall also demonstrate local efforts to remove governmental constraints that hinder the locality from meeting its share of the regional housing need in accordance with Section 65584 and from meeting the need for housing for persons with disabilities, supportive housing, transitional housing, and emergency shelters identified pursuant to paragraph (7).
(6)  An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the availability of financing, the price of land, the cost of construction, the requests to develop housing at densities below those anticipated in the analysis required by subdivision (c) of Section 65583.2, and the length of time between receiving approval for a housing development and submittal of an application for building permits for that housing development that hinder the construction of a locality’s share of the regional housing need in accordance with Section 65584. The analysis shall also demonstrate local efforts to remove nongovernmental constraints that create a gap between the locality’s planning for the development of housing for all income levels and the construction of that housing. (7)  An analysis of any special housing needs, such as those of the elderly; persons with disabilities, including a developmental disability, as defined in Section 4512 of the Welfare and Institutions Code; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. The need for emergency shelter shall be assessed based on annual and seasonal need. The need for emergency shelter may be reduced by the number of supportive housing units that are 93 — 5 — Ch. 753
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identified in an adopted 10-year plan to end chronic homelessness and that are either vacant or for which funding has been identified to allow construction during the planning period. An analysis of special housing needs by a city or county may include an analysis of the need for frequent user coordinated care housing services.
(8)  An analysis of opportunities for energy conservation with respect to residential development. Cities and counties are encouraged to include weatherization and energy efficiency improvements as part of publicly subsidized housing rehabilitation projects. This may include energy efficiency measures that encompass the building envelope, its heating and cooling systems, and its electrical system.
(9)  An analysis of existing assisted housing developments that are eligible to change from low-income housing uses during the next 10 years due to termination of subsidy contracts, mortgage prepayment, or expiration of restrictions on use. “Assisted housing developments,” for the purpose of this section, shall mean multifamily rental housing that receives governmental assistance under federal programs listed in subdivision (a) of Section 65863.10, state and local multifamily revenue bond programs, local redevelopment programs, the federal Community Development Block Grant Program, or local in-lieu fees. “Assisted housing developments” shall also include multifamily rental units that were developed pursuant to a local inclusionary housing program or used to qualify for a density bonus pursuant to Section 65916.
(A)  The analysis shall include a listing of each development by project name and address, the type of governmental assistance received, the earliest possible date of change from low-income use, and the total number of elderly and nonelderly units that could be lost from the locality’s low-income housing stock in each year during the 10-year period. For purposes of state and federally funded projects, the analysis required by this subparagraph need only contain information available on a statewide basis. (B)  The analysis shall estimate the total cost of producing new rental housing that is comparable in size and rent levels, to replace the units that could change from low-income use, and an estimated cost of preserving the assisted housing developments. This cost analysis for replacement housing may be done aggregately for each five-year period and does not have to contain a project-by-project cost estimate.
(C)  The analysis shall identify public and private nonprofit corporations known to the local government which have legal and managerial capacity to acquire and manage these housing developments.
(D)  The analysis shall identify and consider the use of all federal, state, and local financing and subsidy programs which can be used to preserve, for lower income households, the assisted housing developments, identified in this paragraph, including, but not limited to, federal Community Development Block Grant Program funds, tax increment funds received by a redevelopment agency of the community, and administrative fees received by a housing authority operating within the community. In considering the use of these financing and subsidy programs, the analysis shall identify the 93 Ch. 753 — 6 —
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amounts of funds under each available program which have not been legally obligated for other purposes and which could be available for use in preserving assisted housing developments.
(b)  (1)  A statement of the community’s goals, quantified objectives, and policies relative to the maintenance, preservation, improvement, and development of housing.
(2)  It is recognized that the total housing needs identified pursuant to subdivision (a) may exceed available resources and the community’s ability to satisfy this need within the content of the general plan requirements outlined in Article 5 (commencing with Section 65300). Under these circumstances, the quantified objectives need not be identical to the total housing needs. The quantified objectives shall establish the maximum number of housing units by income category, including extremely low income, that can be constructed, rehabilitated, and conserved over a five-year time period.
(c)  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 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 through the administration of land use and development controls, the provision of regulatory concessions and incentives, the utilization of appropriate federal and state financing and subsidy programs when available, and the utilization of moneys in a lowand moderate-income housing fund of an agency if the locality has established a redevelopment project area pursuant to the Community Redevelopment Law (Division 24 (commencing with Section 33000) of the Health and Safety Code). In order to make adequate provision for the housing needs of all economic segments of the community, the program shall do all of the following:
(1)  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 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, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing.
(A)  Where the inventory of sites, pursuant to paragraph (3) of subdivision (a), does not identify adequate sites to accommodate the need for groups of all household income levels pursuant to Section 65584, rezoning of those sites, including adoption of minimum density and development standards, for jurisdictions with an eight-year housing element planning period pursuant 93 — 7 — Ch. 753
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to Section 65588, shall be completed no later than three years after either the date the housing element is adopted pursuant to subdivision (f) of Section 65585 or the date that is 90 days after receipt of comments from the department pursuant to subdivision (b) of Section 65585, whichever is earlier, unless the deadline is extended pursuant to subdivision (f).

Notwithstanding the foregoing, for a local government that fails to adopt a housing element within 120 days of the statutory deadline in Section 65588 for adoption of the housing element, rezoning of those sites, including adoption of minimum density and development standards, shall be completed no later than three years and 120 days from the statutory deadline in Section 65588 for adoption of the housing element.
(B)  Where the inventory of sites, pursuant to paragraph (3) of subdivision (a), does not identify adequate sites to accommodate the need for groups of all household income levels pursuant to Section 65584, the program shall identify sites that can be developed for housing within the planning period pursuant to subdivision (h) of Section 65583.2. The identification of sites shall include all components specified in Section 65583.2. (C)  Where the inventory of sites pursuant to paragraph (3) of subdivision (a) does not identify adequate sites to accommodate the need for farmworker housing, the program shall provide for sufficient sites to meet the need with zoning that permits farmworker housing use by right, including density and development standards that could accommodate and facilitate the feasibility of the development of farmworker housing for low- and very low income households.
(2)  Assist in the development of adequate housing to meet the needs of extremely low, very low, low-, and moderate-income households. (3)  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. Transitional housing and supportive housing shall be considered a residential use of property and shall be subject only to those restrictions that apply to other residential dwellings of the same type in the same zone. Supportive housing, as defined in Section 65650, shall be a use by right in all zones where multifamily and mixed uses are permitted, as provided in Article 11 (commencing with Section 65650). (4)  Conserve and improve the condition of the existing affordable housing stock, which may include addressing ways to mitigate the loss of dwelling units demolished by public or private action.
(5)  Promote housing opportunities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability.
(6)  Preserve for lower income households the assisted housing developments identified pursuant to paragraph (9) of subdivision (a). The program for preservation of the assisted housing developments shall utilize, 93 Ch. 753 — 8 —
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to the extent necessary, all available federal, state, and local financing and subsidy programs identified in paragraph (9) of subdivision (a), except where a community has other urgent needs for which alternative funding sources are not available. The program may include strategies that involve local regulation and technical assistance.
(7)  Include an identification of the agencies and officials responsible for the implementation of the various actions and the means by which consistency will be achieved with other general plan elements and community goals.
(8)  Include a diligent effort by the local government to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort. (d)  (1)  A local government may satisfy all or part of its requirement to identify a zone or zones suitable for the development of emergency shelters pursuant to paragraph (4) of subdivision (a) by adopting and implementing a multijurisdictional agreement, with a maximum of two other adjacent communities, that requires the participating jurisdictions to develop at least one year-round emergency shelter within two years of the beginning of the planning period.
(2)  The agreement shall allocate a portion of the new shelter capacity to each jurisdiction as credit toward its emergency shelter need, and each jurisdiction shall describe how the capacity was allocated as part of its housing element.
(3)  Each member jurisdiction of a multijurisdictional agreement shall describe in its housing element all of the following:
(A)  How the joint facility will meet the jurisdiction’s emergency shelter need.
(B)  The jurisdiction’s contribution to the facility for both the development and ongoing operation and management of the facility.
(C)  The amount and source of the funding that the jurisdiction contributes to the facility.
(4)  The aggregate capacity claimed by the participating jurisdictions in their housing elements shall not exceed the actual capacity of the shelter. (e)  Except as otherwise provided in this article, amendments to this article that alter the required content of a housing element shall apply to both of the following:
(1)  A housing element or housing element amendment prepared pursuant to subdivision (e) of Section 65588 or Section 65584.02, when a city, county, or city and county submits a draft to the department for review pursuant to Section 65585 more than 90 days after the effective date of the amendment to this section.
(2)  Any housing element or housing element amendment prepared pursuant to subdivision (e) of Section 65588 or Section 65584.02, when the city, county, or city and county fails to submit the first draft to the department before the due date specified in Section 65588 or 65584.02. (f)  The deadline for completing required rezoning pursuant to subparagraph (A) of paragraph (1) of subdivision (c) shall be extended by 93 — 9 — Ch. 753
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one year if the local government has completed the rezoning at densities sufficient to accommodate at least 75 percent of the units for low- and very low income households and if the legislative body at the conclusion of a public hearing determines, based upon substantial evidence, that any of the following circumstances exist:
(1)  The local government has been unable to complete the rezoning because of the action or inaction beyond the control of the local government of any other state, federal, or local agency.
(2)  The local government is unable to complete the rezoning because of infrastructure deficiencies due to fiscal or regulatory constraints. (3)  The local government must undertake a major revision to its general plan in order to accommodate the housing-related policies of a sustainable communities strategy or an alternative planning strategy adopted pursuant to Section 65080.

The resolution and the findings shall be transmitted to the department together with a detailed budget and schedule for preparation and adoption of the required rezonings, including plans for citizen participation and expected interim action. The schedule shall provide for adoption of the required rezoning within one year of the adoption of the resolution. (g)  (1)  If a local government fails to complete the rezoning by the deadline provided in subparagraph (A) of paragraph (1) of subdivision (c), as it may be extended pursuant to subdivision (f), except as provided in paragraph (2), a local government may not disapprove a housing development project, nor require a conditional use permit, planned unit development permit, or other locally imposed discretionary permit, or impose a condition that would render the project infeasible, if the housing development project (A) is proposed to be located on a site required to be rezoned pursuant to the program action required by that subparagraph and (B) complies with applicable, objective general plan and zoning standards and criteria, including design review standards, described in the program action required by that subparagraph. Any subdivision of sites shall be subject to the Subdivision Map Act (Division 2 (commencing with Section 66410)). Design review shall not constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.
(2)  A local government may disapprove a housing development described in paragraph (1) if it makes written findings supported by substantial evidence on the record that both of the following conditions exist:
(A)  The housing development project would have a specific, adverse impact upon the public health or safety unless the project is disapproved or approved upon the condition that the project be developed at a lower density.

As used in this paragraph, a “specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. (B)  There is no feasible method to satisfactorily mitigate or avoid the adverse impact identified pursuant to paragraph (1), other than the 93 Ch. 753 — 10 —
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disapproval of the housing development project or the approval of the project upon the condition that it be developed at a lower density. (3)  The applicant or any interested person may bring an action to enforce this subdivision. If a court finds that the local agency disapproved a project or conditioned its approval in violation of this subdivision, the court shall issue an order or judgment compelling compliance within 60 days. The court shall retain jurisdiction to ensure that its order or judgment is carried out. If the court determines that its order or judgment has not been carried out within 60 days, the court may issue further orders to ensure that the purposes and policies of this subdivision are fulfilled. In any such action, the city, county, or city and county shall bear the burden of proof. (4)  For purposes of this subdivision, “housing development project” means a project to construct residential units for which the project developer provides sufficient legal commitments to the appropriate local agency to ensure the continued availability and use of at least 49 percent of the housing units for very low, low-, and moderate-income households with an affordable housing cost or affordable rent, as defined in Section 50052.5 or 50053 of the Health and Safety Code, respectively, for the period required by the applicable financing.
(h)  An action to enforce the program actions of the housing element shall be brought pursuant to Section 1085 of the Code of Civil Procedure.

SEC. 2.5. Section 65583 of the Government Code is amended to read:
65583. The housing element shall consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing. The housing element shall identify adequate sites for housing, including rental housing, factory-built housing, mobilehomes, and emergency shelters, and shall make adequate provision for the existing and projected needs of all economic segments of the community. The element shall contain all of the following:
(a)  An assessment of housing needs and an inventory of resources and constraints relevant to the meeting of these needs. The assessment and inventory shall include all of the following:
(1)  An analysis of population and employment trends and documentation of projections and a quantification of the locality’s existing and projected housing needs for all income levels, including extremely low income households, as defined in subdivision (b) of Section 50105 and Section 50106 of the Health and Safety Code. These existing and projected needs shall include the locality’s share of the regional housing need in accordance with Section 65584. Local agencies shall calculate the subset of very low income households allotted under Section 65584 that qualify as extremely low income households. The local agency may either use available census data to calculate the percentage of very low income households that qualify as extremely low income households or presume that 50 percent of the very low income households qualify as extremely low income households. The number of extremely low income households and very low income 93 — 11 — Ch. 753
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households shall equal the jurisdiction’s allocation of very low income households pursuant to Section 65584.
(2)  An analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition.
(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.
(4)  (A)  The identification of a zone or zones where emergency shelters are allowed as a permitted use without a conditional use or other discretionary permit. The identified zone or zones shall include sufficient capacity to accommodate the need for emergency shelter identified in paragraph (7), except that each local government shall identify a zone or zones that can accommodate at least one year-round emergency shelter. If the local government cannot identify a zone or zones with sufficient capacity, the local government shall include a program to amend its zoning ordinance to meet the requirements of this paragraph within one year of the adoption of the housing element. The local government may identify additional zones where emergency shelters are permitted with a conditional use permit. The local government shall also demonstrate that existing or proposed permit processing, development, and management standards are objective and encourage and facilitate the development of, or conversion to, emergency shelters. Emergency shelters may only be subject to those development and management standards that apply to residential or commercial development within the same zone except that a local government may apply written, objective standards that include all of the following:
(i)  The maximum number of beds or persons permitted to be served nightly by the facility.
(ii)  Off-street parking based upon demonstrated need, provided that the standards do not require more parking for emergency shelters than for other residential or commercial uses within the same zone.
(iii)  The size and location of exterior and interior onsite waiting and client intake areas.
(iv)  The provision of onsite management.
(v)  The proximity to other emergency shelters, provided that emergency shelters are not required to be more than 300 feet apart. (vi)  The length of stay.
(vii)  Lighting.
(viii)  Security during hours that the emergency shelter is in operation. (B)  The permit processing, development, and management standards applied under this paragraph shall not be deemed to be discretionary acts within the meaning of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). 93 Ch. 753 — 12 —
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(C)  A local government that can demonstrate to the satisfaction of the department the existence of one or more emergency shelters either within its jurisdiction or pursuant to a multijurisdictional agreement that can accommodate that jurisdiction’s need for emergency shelter identified in paragraph (7) may comply with the zoning requirements of subparagraph (A) by identifying a zone or zones where new emergency shelters are allowed with a conditional use permit.
(D)  A local government with an existing ordinance or ordinances that comply with this paragraph shall not be required to take additional action to identify zones for emergency shelters. The housing element must only describe how existing ordinances, policies, and standards are consistent with the requirements of this paragraph.
(5)  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, local processing and permit procedures, and any locally adopted ordinances that directly impact the cost and supply of residential development. The analysis shall also demonstrate local efforts to remove governmental constraints that hinder the locality from meeting its share of the regional housing need in accordance with Section 65584 and from meeting the need for housing for persons with disabilities, supportive housing, transitional housing, and emergency shelters identified pursuant to paragraph (7).
(6)  An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the availability of financing, the price of land, the cost of construction, the requests to develop housing at densities below those anticipated in the analysis required by subdivision (c) of Section 65583.2, and the length of time between receiving approval for a housing development and submittal of an application for building permits for that housing development that hinder the construction of a locality’s share of the regional housing need in accordance with Section 65584. The analysis shall also demonstrate local efforts to remove nongovernmental constraints that create a gap between the locality’s planning for the development of housing for all income levels and the construction of that housing. (7)  An analysis of any special housing needs, such as those of the elderly; persons with disabilities, including a developmental disability, as defined in Section 4512 of the Welfare and Institutions Code; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. The need for emergency shelter shall be assessed based on annual and seasonal need. The need for emergency shelter may be reduced by the number of supportive housing units that are identified in an adopted 10-year plan to end chronic homelessness and that are either vacant or for which funding has been identified to allow 93 — 13 — Ch. 753
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construction during the planning period. An analysis of special housing needs by a city or county may include an analysis of the need for frequent user coordinated care housing services.
(8)  An analysis of opportunities for energy conservation with respect to residential development. Cities and counties are encouraged to include weatherization and energy efficiency improvements as part of publicly subsidized housing rehabilitation projects. This may include energy efficiency measures that encompass the building envelope, its heating and cooling systems, and its electrical system.
(9)  An analysis of existing assisted housing developments that are eligible to change from low-income housing uses during the next 10 years due to termination of subsidy contracts, mortgage prepayment, or expiration of restrictions on use. “Assisted housing developments,” for the purpose of this section, shall mean multifamily rental housing that receives governmental assistance under federal programs listed in subdivision (a) of Section 65863.10, state and local multifamily revenue bond programs, local redevelopment programs, the federal Community Development Block Grant Program, or local in-lieu fees. “Assisted housing developments” shall also include multifamily rental units that were developed pursuant to a local inclusionary housing program or used to qualify for a density bonus pursuant to Section 65916.
(A)  The analysis shall include a listing of each development by project name and address, the type of governmental assistance received, the earliest possible date of change from low-income use, and the total number of elderly and nonelderly units that could be lost from the locality’s low-income housing stock in each year during the 10-year period. For purposes of state and federally funded projects, the analysis required by this subparagraph need only contain information available on a statewide basis. (B)  The analysis shall estimate the total cost of producing new rental housing that is comparable in size and rent levels, to replace the units that could change from low-income use, and an estimated cost of preserving the assisted housing developments. This cost analysis for replacement housing may be done aggregately for each five-year period and does not have to contain a project-by-project cost estimate.
(C)  The analysis shall identify public and private nonprofit corporations known to the local government that have legal and managerial capacity to acquire and manage these housing developments.
(D)  The analysis shall identify and consider the use of all federal, state, and local financing and subsidy programs that can be used to preserve, for lower income households, the assisted housing developments, identified in this paragraph, including, but not limited to, federal Community Development Block Grant Program funds, tax increment funds received by a redevelopment agency of the community, and administrative fees received by a housing authority operating within the community. In considering the use of these financing and subsidy programs, the analysis shall identify the amounts of funds under each available program that have not been legally 93 Ch. 753 — 14 —
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obligated for other purposes and that could be available for use in preserving assisted housing developments.
(b)  (1)  A statement of the community’s goals, quantified objectives, and policies relative to the maintenance, preservation, improvement, and development of housing.
(2)  It is recognized that the total housing needs identified pursuant to subdivision (a) may exceed available resources and the community’s ability to satisfy this need within the content of the general plan requirements outlined in Article 5 (commencing with Section 65300). Under these circumstances, the quantified objectives need not be identical to the total housing needs. The quantified objectives shall establish the maximum number of housing units by income category, including extremely low income, that can be constructed, rehabilitated, and conserved over a five-year time period.
(c)  A program that sets forth a schedule of actions during the planning period, each with a timeline for implementation, that may recognize that certain programs are 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 through the administration of land use and development controls, the provision of regulatory concessions and incentives, the utilization of appropriate federal and state financing and subsidy programs when available, and the utilization of moneys in a lowand moderate-income housing fund of an agency if the locality has established a redevelopment project area pursuant to the Community Redevelopment Law (Division 24 (commencing with Section 33000) of the Health and Safety Code). In order to make adequate provision for the housing needs of all economic segments of the community, the program shall do all of the following:
(1)  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 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, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing.
(A)  Where the inventory of sites, pursuant to paragraph (3) of subdivision (a), does not identify adequate sites to accommodate the need for groups of all household income levels pursuant to Section 65584, rezoning of those sites, including adoption of minimum density and development standards, for jurisdictions with an eight-year housing element planning period pursuant to Section 65588, shall be completed no later than three years after either 93 — 15 — Ch. 753
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the date the housing element is adopted pursuant to subdivision (f) of Section 65585 or the date that is 90 days after receipt of comments from the department pursuant to subdivision (b) of Section 65585, whichever is earlier, unless the deadline is extended pursuant to subdivision (f).

Notwithstanding the foregoing, for a local government that fails to adopt a housing element within 120 days of the statutory deadline in Section 65588 for adoption of the housing element, rezoning of those sites, including adoption of minimum density and development standards, shall be completed no later than three years and 120 days from the statutory deadline in Section 65588 for adoption of the housing element.
(B)  Where the inventory of sites, pursuant to paragraph (3) of subdivision (a), does not identify adequate sites to accommodate the need for groups of all household income levels pursuant to Section 65584, the program shall identify sites that can be developed for housing within the planning period pursuant to subdivision (h) of Section 65583.2. The identification of sites shall include all components specified in Section 65583.2. (C)  Where the inventory of sites pursuant to paragraph (3) of subdivision (a) does not identify adequate sites to accommodate the need for farmworker housing, the program shall provide for sufficient sites to meet the need with zoning that permits farmworker housing use by right, including density and development standards that could accommodate and facilitate the feasibility of the development of farmworker housing for low- and very low income households.
(2)  Assist in the development of adequate housing to meet the needs of extremely low, very low, low-, and moderate-income households. (3)  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. Transitional housing and supportive housing shall be considered a residential use of property and shall be subject only to those restrictions that apply to other residential dwellings of the same type in the same zone. Supportive housing, as defined in Section 65650, shall be a use by right in all zones where multifamily and mixed uses are permitted, as provided in Article 11 (commencing with Section 65650). (4)  Conserve and improve the condition of the existing affordable housing stock, which may include addressing ways to mitigate the loss of dwelling units demolished by public or private action.
(5)  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 protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2), Section 65008, and any other state and federal fair housing and planning law.
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(6)  Preserve for lower income households the assisted housing developments identified pursuant to paragraph (9) of subdivision (a). The program for preservation of the assisted housing developments shall utilize, to the extent necessary, all available federal, state, and local financing and subsidy programs identified in paragraph (9) of subdivision (a), except where a community has other urgent needs for which alternative funding sources are not available. The program may include strategies that involve local regulation and technical assistance.
(7)  Include an identification of the agencies and officials responsible for the implementation of the various actions and the means by which consistency will be achieved with other general plan elements and community goals.
(8)  Include a diligent effort by the local government to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort. (9)  (A)  Affirmatively further fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2. The program shall include an assessment of fair housing in the jurisdiction that shall include all of the following components:
(i)  A summary of fair housing issues in the jurisdiction and an assessment of the jurisdiction’s fair housing enforcement and fair housing outreach capacity.
(ii)  An analysis of available federal, state, and local data and knowledge to identify integration and segregation patterns and trends, racially or ethnically concentrated areas of poverty, disparities in access to opportunity, and disproportionate housing needs within the jurisdiction, including displacement risk.
(iii)  An assessment of the contributing factors for the fair housing issues identified under clause (ii).
(iv)  An identification of the jurisdiction’s fair housing priorities and goals, giving highest priority to those factors identified in clause (iii) that limit or deny fair housing choice or access to opportunity, or negatively impact fair housing or civil rights compliance, and identifying the metrics and milestones for determining what fair housing results will be achieved. (v)  Strategies and actions to implement those priorities and goals, which may include, but are not limited to, enhancing mobility strategies and encouraging development of new affordable housing in areas of opportunity, as well as place-based strategies to encourage community revitalization, including preservation of existing affordable housing, and protecting existing residents from displacement.
(B)  A jurisdiction that completes or revises an assessment of fair housing pursuant to Subpart A (commencing with Section 5.150) of Part 5 of Subtitle A of Title 24 of the Code of Federal Regulations, as published in Volume 80 of the Federal Register, Number 136, page 42272, dated July 16, 2015, or an analysis of impediments to fair housing choice in accordance with the requirements of Section 91.225 of Title 24 of the Code of Federal Regulations in effect prior to August 17, 2015, may incorporate relevant 93 — 17 — Ch. 753
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portions of that assessment or revised assessment of fair housing or analysis or revised analysis of impediments to fair housing into its housing element. (C)  The requirements of this paragraph shall apply to housing elements due to be revised pursuant to Section 65588 on or after January 1, 2021. (d)  (1)  A local government may satisfy all or part of its requirement to identify a zone or zones suitable for the development of emergency shelters pursuant to paragraph (4) of subdivision (a) by adopting and implementing a multijurisdictional agreement, with a maximum of two other adjacent communities, that requires the participating jurisdictions to develop at least one year-round emergency shelter within two years of the beginning of the planning period.
(2)  The agreement shall allocate a portion of the new shelter capacity to each jurisdiction as credit toward its emergency shelter need, and each jurisdiction shall describe how the capacity was allocated as part of its housing element.
(3)  Each member jurisdiction of a multijurisdictional agreement shall describe in its housing element all of the following:
(A)  How the joint facility will meet the jurisdiction’s emergency shelter need.
(B)  The jurisdiction’s contribution to the facility for both the development and ongoing operation and management of the facility.
(C)  The amount and source of the funding that the jurisdiction contributes to the facility.
(4)  The aggregate capacity claimed by the participating jurisdictions in their housing elements shall not exceed the actual capacity of the shelter. (e)  Except as otherwise provided in this article, amendments to this article that alter the required content of a housing element shall apply to both of the following:
(1)  A housing element or housing element amendment prepared pursuant to subdivision (e) of Section 65588 or Section 65584.02, when a city, county, or city and county submits a draft to the department for review pursuant to Section 65585 more than 90 days after the effective date of the amendment to this section.
(2)  Any housing element or housing element amendment prepared pursuant to subdivision (e) of Section 65588 or Section 65584.02, when the city, county, or city and county fails to submit the first draft to the department before the due date specified in Section 65588 or 65584.02. (f)  The deadline for completing required rezoning pursuant to subparagraph (A) of paragraph (1) of subdivision (c) shall be extended by one year if the local government has completed the rezoning at densities sufficient to accommodate at least 75 percent of the units for low- and very low income households and if the legislative body at the conclusion of a public hearing determines, based upon substantial evidence, that any of the following circumstances exist:
(1)  The local government has been unable to complete the rezoning because of the action or inaction beyond the control of the local government of any other state, federal, or local agency.
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(2)  The local government is unable to complete the rezoning because of infrastructure deficiencies due to fiscal or regulatory constraints. (3)  The local government must undertake a major revision to its general plan in order to accommodate the housing-related policies of a sustainable communities strategy or an alternative planning strategy adopted pursuant to Section 65080.

As used in this paragraph, a “specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. (B)  There is no feasible method to satisfactorily mitigate or avoid the adverse impact identified pursuant to paragraph (1), other than the disapproval of the housing development project or the approval of the project upon the condition that it be developed at a lower density. (3)  The applicant or any interested person may bring an action to enforce this subdivision. If a court finds that the local agency disapproved a project or conditioned its approval in violation of this subdivision, the court shall issue an order or judgment compelling compliance within 60 days. The court shall retain jurisdiction to ensure that its order or judgment is carried out. If the court determines that its order or judgment has not been carried 93 — 19 — Ch. 753
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out within 60 days, the court may issue further orders to ensure that the purposes and policies of this subdivision are fulfilled. In any such action, the city, county, or city and county shall bear the burden of proof. (4)  For purposes of this subdivision, “housing development project” means a project to construct residential units for which the project developer provides sufficient legal commitments to the appropriate local agency to ensure the continued availability and use of at least 49 percent of the housing units for very low, low-, and moderate-income households with an affordable housing cost or affordable rent, as defined in Section 50052.5 or 50053 of the Health and Safety Code, respectively, for the period required by the applicable financing.
(h)  An action to enforce the program actions of the housing element shall be brought pursuant to Section 1085 of the Code of Civil Procedure.

SEC. 3. Article 11 (commencing with Section 65650) is added to Chapter 3 of Division 1 of Title 7 of the Government Code, to read:

Article 11. Supportive Housing
65650. For purposes of this article, the following definitions shall apply:
(a)  “Supportive housing” shall have the same meaning as defined in Section 50675.14 of the Health and Safety Code.
(b)  “Supportive services” shall have the same meaning as defined in Section 65582.
(c)  “Target population” shall have the same meaning as defined in Section 50675.14 of the Health and Safety Code.
(d)  “Use by right” shall have the same meaning as defined in subdivision (i) of Section 65583.2.
65651. (a)  Supportive housing shall be a use by right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses, if the proposed housing development satisfies all of the following requirements:
(1)  Units within the development are subject to a recorded affordability restriction for 55 years.
(2)  One hundred percent of the units, excluding managers’ units, within the development are dedicated to lower income households and are receiving public funding to ensure affordability of the housing to lower income Californians. For purposes of this paragraph, “lower income households” has the same meaning as defined in Section 50079.5 of the Health and Safety Code.
(3)  At least 25 percent of the units in the development or 12 units, whichever is greater, are restricted to residents in supportive housing who meet criteria of the target population. If the development consists of fewer than 12 units, then 100 percent of the units, excluding managers’ units, in the development shall be restricted to residents in supportive housing. (4)  The developer provides the planning agency with the information required by Section 65652.
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(5)  Nonresidential floor area shall be used for onsite supportive services in the following amounts:
(A)  For a development with 20 or fewer total units, at least 90 square feet shall be provided for onsite supportive services.
(B)  For a development with more than 20 units, at least 3 percent of the total nonresidential floor area shall be provided for onsite supportive services that are limited to tenant use, including, but not limited to, community rooms, case management offices, computer rooms, and community kitchens. (6)  The developer replaces any dwelling units on the site of the supportive housing development in the manner provided in paragraph (3) of subdivision (c) of Section 65915.
(7)  Units within the development, excluding managers’ units, include at least one bathroom and a kitchen or other cooking facilities, including, at minimum, a stovetop, a sink, and a refrigerator.
(b)  The local government may require a supportive housing development subject to this article to comply with objective, written development standards and policies; provided, however, that the development shall only be subject to the objective standards and policies that apply to other multifamily development within the same zone.
(c)  Notwithstanding any other provision of this section to the contrary, the local government shall, at the request of the project owner, reduce the number of residents required to live in supportive housing if the project-based rental assistance or operating subsidy for a supportive housing project is terminated through no fault of the project owner, but only if all of the following conditions have been met:
(1)  The owner demonstrates that it has made good faith efforts to find other sources of financial support.
(2)  Any change in the number of supportive service units is restricted to the minimum necessary to maintain project’s financial feasibility. (3)  Any change to the occupancy of the supportive housing units is made in a manner that minimizes tenant disruption and only upon the vacancy of any supportive housing units.
(d)  If the proposed housing development is located within a city with a population of fewer than 200,000 or the unincorporated area of a county with a population of fewer than 200,000, and the city or the unincorporated area of the county has a population of persons experiencing homelessness of 1,500 or fewer, according to the most recently published homeless point-in-time-count, the development, in addition to the requirements of subdivision (a), shall consist of 50 units or fewer to be a use by right pursuant to this article. A city or county described in this subdivision may develop a policy to approve as a use by right proposed housing developments with a limit higher than 50 units.
65652. A developer of supportive housing subject to this article shall provide the planning agency with a plan for providing supportive services, with documentation demonstrating that supportive services will be provided onsite to residents in the project, as required by Section 65651, and describing those services, which shall include all of the following:
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(a)  The name of the proposed entity or entities that will provide supportive services.
(b)  The proposed funding source or sources for the provided onsite supportive services.
(c)  Proposed staffing levels.
65653. (a)  The local government shall approve a supportive housing development that complies with the applicable requirements of this article. (b)  The local government shall notify the developer whether the application is complete within 30 days of receipt of an application to develop supportive housing in accordance with this article. The local government shall complete its review of the application within 60 days after the application is complete for a project with 50 or fewer units, or within 120 days after the application is complete for a project with more than 50 units. 65654. If the supportive housing development is located within one-half mile of a public transit stop, the local government shall not impose any minimum parking requirements for the units occupied by supportive housing residents.
65655. This article shall not be construed to do either of the following:
(a)  Preclude or limit the ability of a developer to seek a density bonus from the local government pursuant to Section 65915.
(b)  Expand or contract the authority of a local government to adopt or amend an ordinance, charter, general plan, specific plan, resolution, or other land use policy or regulation that promotes the development of supportive housing.
65656. The Legislature finds and declares that the provision of adequate supportive housing to help alleviate the severe shortage of housing opportunities for people experiencing homelessness in this state and of necessary services to the target population described in Section 50675.14 of the Health and Safety Code is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this article applies to all cities, including charter cities.

SEC. 4. Section 2.5 of this bill incorporates amendments to Section 65583 of the Government Code proposed by both this bill and Assembly Bill 686. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 65583 of the Government Code, and (3) this bill is enacted after Assembly Bill 686, in which case Section 2 of this bill shall not become operative.

SEC. 5. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.

O
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California Department of Housing and Community Development Permanent Supportive Housing By Right Processing
(Chapter 753, Statutes of 2018 (AB 2162))
Fact Sheet
Introduction
AB 2162 (Chapter 753, statutes of 2018) streamlines and expedites the approval of supportive housing to better address the need of Californians experiencing homelessness. Specifically, AB 2162 requires supportive housing to be a use by right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses. The legislation requires a local government to approve, within statutory timelines, a supportive housing development that complies with specified criteria.

Highlights
• Supportive housing shall be a use by right
as defined by Government Code Section
65583.2(i).
• A local government is required to notify the
developer whether the application is
complete within 30 days of receipt of an
application to develop supportive housing.
• After the application is complete, local
governments shall complete its review of the
application within 60 days for smaller
projects (50 or fewer units) and 120 days for
larger projects (more than 50 units).
• Local governments shall not impose any minimum parking requirements for units occupied by supportive housing residents if the development is located within ½ mile of a public transit stop.
• New provisions under AB 2162 are in addition to current housing element law that considers transitional and supportive housing a residential use and subject only to those restrictions that apply to other residential dwellings of the same type in the same zone. • This article applies to all cities and counties, including charter cities and counties.

Additional Resources
For the full text and requirements of AB 2162, visit California’s legislative information website at http://leginfo.legislature.ca.gov/. If you have any questions or would like additional information or technical assistance, please email Hillary Prasad at [email protected].

Excerpt from Government Code
Section 65583.2(i)
.“use by right” shall mean that the local
government’s review of the owner-occupied
or multifamily residential use may not
require a conditional use permit, planned
unit development permit, or other
discretionary local government review or
approval that would constitute a “project”
for purposes of Division 13 (commencing
with Section 21000) of the Public
Resources Code
265
Agenda Item # 10.

State of California

HEALTH AND SAFETY CODE
Section 17021.5
17021.5. (a)   Any employee housing which has qualified, or is intended to qualify, for a permit to operate pursuant to this part may invoke the provisions of this section. (b)   Any employee housing providing accommodations for six or fewer employees shall be deemed a single-family structure with a residential land use designation for the purposes of this section. For the purpose of all local ordinances, employee housing shall not be included within the definition of a boarding house, rooming house, hotel, dormitory, or other similar term that implies that the employee housing is a business run for profit or differs in any other way from a family dwelling. No conditional use permit, zoning variance, or other zoning clearance shall be required of employee housing that serves six or fewer employees that is not required of a family dwelling of the same type in the same zone. Use of a family dwelling for purposes of employee housing serving six or fewer persons shall not constitute a change of occupancy for purposes of Part 1.5 (commencing with Section 17910) or local building codes. (c)   Except as otherwise provided in this part, employee housing that serves six or fewer employees shall not be subject to any business taxes, local registration fees, use permit fees, or other fees to which other family dwellings of the same type in the same zone are not likewise subject. Nothing in this subdivision shall be construed to forbid the imposition of local property taxes, fees for water services and garbage collection, fees for normal inspections, local bond assessments, and other fees, charges, and assessments to which other family dwellings of the same type in the same zone are likewise subject. Neither the State Fire Marshal nor any local public entity shall charge any fee to the owner, operator or any resident for enforcing fire inspection regulations pursuant to state law or regulation or local ordinance, with respect to employee housing which serves six or fewer persons.
(d)   For the purposes of any contract, deed, or covenant for the transfer of real property, employee housing which serves six or fewer employees shall be considered a residential use of property and a use of property by a single household, notwithstanding any disclaimers to the contrary. For purposes of this section, “employee housing” includes employee housing defined in subdivision (b) of Section 17008, even if the housing accommodations or property are not located in a rural area, as defined by Section 50101.
(e)   The Legislature hereby declares that it is the policy of this state that each county and city shall permit and encourage the development and use of sufficient numbers and types of employee housing facilities as are commensurate with local

STATE OF CALIFORNIA

AUTHENTICATED

ELECTRONIC LEGAL MATERIAL
266
Agenda Item # 10.
needs. This section shall apply equally to any charter city, general law city, county, city and county, district and any other local public entity. (Amended by Stats. 1993, Ch. 952, Sec. 1. Effective January 1, 1994.) 267
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State of California

HEALTH AND SAFETY CODE
Section 17021.6
17021.6. (a)  The owner of any employee housing who has qualified or intends to qualify for a permit to operate pursuant to this part may invoke this section. (b)  Any employee housing consisting of no more than 36 beds in a group quarters or 12 units or spaces designed for use by a single family or household, or that is approved pursuant to Section 17021.8, shall be deemed an agricultural land use for the purposes of this section. Except as provided in Section 17021.8, for the purpose of all local ordinances, employee housing shall not be deemed a use that implies that the employee housing is an activity that differs in any other way from an agricultural use. No conditional use permit, zoning variance, or other discretionary zoning clearance shall be required of this employee housing that is not required of any other agricultural activity in the same zone. The permitted occupancy in employee housing in a zone allowing agricultural uses shall include agricultural employees who do not work on the property where the employee housing is located.
(c)  Except as otherwise provided in this part, employee housing consisting of no more than 36 beds in a group quarters or 12 units or spaces designed for use by a single family or household shall not be subject to any business taxes, local registration fees, use permit fees, or other fees to which other agricultural activities in the same zone are not likewise subject. This subdivision does not forbid the imposition of local property taxes, fees for water services and garbage collection, fees for normal inspections, local bond assessments, and other fees, charges, and assessments to which other agricultural activities in the same zone are likewise subject. Neither the State Fire Marshal nor any local public entity shall charge any fee to the owner, operator, or any resident for enforcing fire inspection regulation pursuant to state law or regulations or local ordinance, with respect to employee housing consisting of no more than 36 beds in a group quarters or 12 units or spaces designed for use by a single family or household.
(d)  For the purposes of any contract, deed, or covenant for the transfer of real property, employee housing consisting of no more than 36 beds in a group quarters or 12 units or spaces designed for use by a single family or household, or that is approved pursuant to Section 17021.8, shall be considered an agricultural use of property, notwithstanding any disclaimers to the contrary. For purposes of this section, “employee housing” includes employee housing defined in subdivisions (b) and (c) of Section 17008, even if the housing accommodations or property are not located in a rural area, as defined by Section 50101.
(e)  The Legislature hereby declares that it is the policy of this state that each county and city shall permit and encourage the development and use of sufficient numbers

STATE OF CALIFORNIA

AUTHENTICATED

ELECTRONIC LEGAL MATERIAL
268
Agenda Item # 10.
and types of employee housing facilities as are commensurate with local need. This section shall apply equally to any charter city, general law city, county, city and county, district, and any other local public entity.
(f)  If any owner who invokes the provisions of this section or Section 17021.8 fails to maintain a permit to operate pursuant to this part throughout the first 10 consecutive years following the issuance of the original certificate of occupancy, both of the following shall occur:
(1)  The enforcement agency shall notify the appropriate local government entity. (2)  The public agency that has waived any taxes, fees, assessments, or charges for employee housing pursuant to this section may recover the amount of those taxes, fees, assessments, or charges from the landowner, less 10 percent of that amount for each year that a valid permit has been maintained.
(g)  Subdivision (f) shall not apply to an owner of any prospective, planned, or unfinished employee housing facility who has applied to the appropriate state and local public entities for a permit to construct or operate pursuant to this part prior to January 1, 1996.
(Amended by Stats. 2019, Ch. 866, Sec. 10. (AB 1783) Effective January 1, 2020.) 269
Agenda Item # 10.

Reviewed By:

City Manager City Attorney
GE JH

AGENDA REPORT SUMMARY
Meeting Date: August 22, 2023
Subject: Introduce and waive further reading of Penalty for Expired Permits Ordinance Prepared by: Nick Zornes, Development Services Director Reviewed by: Jon Maginot, Assistant City Manager
Approved by: Gabriel Engeland, City Manager
Initiated by:

City Council.

Environmental Review:

Ordinance is exempt from environmental review pursuant to Section 15061(b)(3) of the State Guidelines implementing the California Environmental Quality Act of 1970.

Fiscal Impact:

None.

Attachments:

1. Draft Ordinance with Appendices
Summary:

The draft ordinance proposed accomplishes the goal of eliminating or reducing future instances of “never ending” permits within the City of Los Altos. Under existing allowances of permits used under the Los Altos Municipal Code, Building Permits can obtain permit extensions, and reactivations by simply requesting an extension, and in some cases by paying a reactivation fee of the issued permits. However, the Los Altos Municipal Code does not limit the number of times a permit can be extended or reactivated once it has expired. The enactment of this ordinance will allow for enforcement of the prescribed regulations contained within, and ultimately require private developments to complete construction within a reasonable amount of time.

Staff Recommendation:

Introduce and Waive Further Reading of an Ordinance of the City Council of the City of Los Altos Adding Chapter 12.72 Penalty for Expired Permits and amending Chapter 12.08 and 12.10 of the Los Altos Municipal Code and find that this action is Exempt from Environmental Review 270
Agenda Item # 11.

Subject: Penalty for Expired Permits Ordinance
August 22, 2023 Page 2
Pursuant to Section 15061(b)(3) of the State Guidelines Implementing the California Environmental Quality Act of 1970.

Background
Existing practices and procedures regarding the expiration of building permits within the City of Los Altos follows the standard allowances as contained within the California Building Code (CBC), which allows for the reactivation of expired building permits by request and/or by payment of a reactivation fee by the applicant. However, the standard California Building Code falls short on limiting the number of times a reactivation may be granted of an existing building permit.

Analysis
For example, if an applicant pulls a building permit in September 2005, under the 2001 CBC, and the building permit has expired several times since issuance date the applicant/property owner can reactivate the building permit simply by payment of either one half the cost of the original permit or pay the full cost of the original permit again (dependent upon prior extensions or reactivations granted).
 The example provided above outlines the potential for existing building permits to continue construction for several years into the future without completion or progress nor coming into compliance with today’s building code regulations.  The example provided above is an example of real-life circumstances of prior construction permits pulled within the City of Los Altos. This example would mean that the prior construction permit is six (6) building code cycles behind today’s code standards (a total of 17 years post original approvals).

Discussion
The example provided above provides multiple real examples of circumstance that exist today within the City of Los Altos. Unfortunately, due to the absence of regulations regarding this specific portion of the Municipal Code this is largely unenforceable without the enactment of the proposed ordinance.

The proposed ordinance would clarify the penalty of expired building permits in Chapter 12.08 – Building Code, and Chapter 12.10 – Residential Code, while also creating the standalone Chapter of 12.72 – Penalty for Expired Permits.

The draft ordinance would be applicable to all building permits pulled within the City of Los Altos.

Additionally, the draft ordinance would provide a per day penalty upon the 31st day should a property owner not seek renewal prior.
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1 ORDINANCE NO. 2023-__

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LOS ALTOS ADDING CHAPTER 12.72 PENALTY FOR EXPIRED PERMITS AND AMENDING CHAPTER

12.08 AND 12.10 TO TITLE 12 BUILDINGS AND CONSTRUCTION OF THE LOS

ALTOS MUNICIPAL CODE
WHEREAS, the amendments was processed in accordance with the applicable provisions of the California Government Code and the Los Altos Municipal Code; and WHEREAS, the City Council held a duly noticed public hearing on August 22, 2023, and September 12, 2023; and
WHEREAS, this Ordinance is exempt from environmental review pursuant to Section 15061(b)(3) of the State Guidelines implementing the California Environmental Quality Act of 1970, as amended; and
NOW, THEREFORE, the City Council of the City of Los Altos does hereby ordain as follows:

SECTION 1. AMENDMENT OF TITLE 12 OF THE MUNICIPAL CODE. Chapter 12.72 are hereby added of the Los Altos Municipal Code as set forth in Appendix A to this Ordinance.

SECTION 2. AMENDMENT OF TITLE 12 OF THE MUNICIPAL CODE. Chapter 12.08 and 12.10 are hereby amended of the Los Altos Municipal Code as set forth in Appendix A to this Ordinance.

SECTION 3. CONSTITUTIONALITY; AMBIGUITIES. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions hereof. Any ambiguities in the Los Altos Municipal Code created by this Ordinance shall be resolved by the Development Services Director, in their reasonable discretion, after consulting the City Attorney.

SECTION 4. PUBLICATION. This Ordinance shall be published as provided in Government Code Section 36933.

SECTION 5. EFFECTIVE DATE. This Ordinance shall be effective upon the commencement of the thirty-first day following the adoption hereof.

The foregoing Ordinance was duly and properly introduced at a regular meeting of the City Council of the City of Los Altos held on August 22, 2023, and was thereafter, at a regular meeting held on September 12, 2023, passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
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2 ___________________________________
Sally Meadows, MAYOR
Attest:
____________________________
Melissa Thurman MMC, City Clerk
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APPENDIX A
AMENDMENTS TO CHAPTER 11.14
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Title 12 - BUILDINGS AND CONSTRUCTION
Chapter 12.08 BUILDING CODE

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Chapter 12.08 BUILDING CODE

12.08.010 Adoption of the California Building Code.

The 2022 California Building Code (2 volumes), contained in the California Code of Regulations, Title 24, Part 2, which incorporates and amends the International Building Code 2021 Edition, published by the California Building Standards Commission and the International Code Council, with the amendments and certain appendices as set forth in Section 12.08.020, is hereby adopted by reference as if fully set forth here. One copy of said code is on file in the office of the building official for use and examination by the public.

12.08.020 Amendments.

The 2022 California Building Code referred to in Section 12.08.010 is adopted, together with Chapter 1 of the 2022 California Building Code, with the following amendments and certain Appendix Chapters as follows:

Chapter 1, Division II, Section 105.2 Building: #1, is deleted and replaced to read as follows, based upon the express finding of necessity set forth in Section 6.B.1 of this Ordinance.

A. Work exempt from building permits. Building permits shall not be required for freestanding unenclosed play structures. Enclosed accessory structures used as playhouses, tool and storage sheds and similar uses that are less than 120 square feet constructed without electrical, plumbing, or mechanical features do not require building permits, but do require zoning approval to comply with local zoning regulations.

Chapter 1, Division II, Section 110.3.4 is deleted and replaced to read as follows, based upon the express findings of necessity set forth in Section 6.B.2 of this Ordinance.

B. Frame Inspection. Framing inspection shall be made after the following components are completed: Roof deck and/or sheathing has been inspected and approved; complete finish roofing materials are installed; the building exterior envelope has all windows and doors installed; all framing, fire-blocking, bracing, pipes, chimneys and vents to be concealed are complete; and all sub-trades including, but not limited to, building, electrical, plumbing and mechanical are roughed in and under required tests.

C. Only the following Appendix Chapters from the Building Code are adopted:

1. Appendix I, Patio Covers.

2. Appendix J, Grading.

Section 903.2 is amended to read as follows:
903.2 Where required. Approved automatic sprinkler systems in new and existing buildings and structures shall be provided in the locations described in this Section or in Sections 903.2.1 through 903.2.12 whichever is the more restrictive and Sections 903.2.14 through 903.2.21.

For the purposes of this section, firewalls and fire barriers used to separate building areas shall be constructed in accordance with the California Building Code and shall be without openings or penetrations.
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1. An automatic sprinkler system shall be provided throughout all new buildings and structures, other than Group R occupancies, except as follows:
a. Buildings and structures not located in any Wildland-Urban Interface and not exceeding 1,200 square feet of fire area.
b. Buildings and structures located in any Wildland-Urban Interface Fire Area and not exceeding 500 square feet of fire area.
c. Group S-2 or U occupancies, including photovoltaic support structures, used exclusively for vehicle parking which meet all of the following:
i. Noncombustible construction.
ii. Maximum 5,000 square feet in building area.
iii. Structure is open on not less than three (3) sides nor 75% of structure perimeter. iv. Minimum of 10 feet separation from existing buildings, or similar structures, unless area is separated by fire walls complying with California Building Code 706.
d. Canopies, constructed in accordance with CBC 406.7.2, used exclusively for weather protection of vehicle fueling pads per CBC 406.7.1 and not exceeding 5,000 square feet of fire area.

2. An automatic sprinkler system shall be installed throughout all new buildings with a Group R fire area.

Exception: Detached Accessory Dwelling Unit, provided that all of the following are met:
a. The unit meets the definition of an Accessory Dwelling Unit as defined in the Government Code Section 65852.2.
b. The existing primary residence does not have automatic fire sprinklers. c. The accessory detached dwelling unit does not exceed 1,200 square feet in size. d. The unit is on the same lot as the primary residence. e. The unit meets all apparatus access and water supply requirements of Chapter 5 and Appendix B of the 2022 California Fire Code.

3. An approved automatic fire sprinkler system shall be installed in new manufactured homes (as defined in California Health and Safety Code Sections 18007 and 18009) and multifamily manufactured homes with two dwelling units (as defined in California Health and Safety Code Section 18008.7) in accordance with Title 25 of the California Code of Regulations.

4. An approved automatic sprinkler system shall be provided throughout all existing buildings, when additions are made that exceed fifty (50) percent and/or seven hundred and fifty (750) square feet of existing floor areas (area calculations shall not include existing basement floor areas and any non-habitable floor areas i.e., garages).

5. An approved automatic sprinkler system shall be provided throughout all new and existing basements.
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6. An approved automatic sprinkler system shall be provided throughout existing buildings and structures when alterations or additions are made that create conditions described in Sections 903.2.1 through 903.2.18

7. Any change in the character of occupancy or in use of any building with a fire area equal to or greater than 3,600 square feet which, in the opinion of the fire code official or building official, would place the building into a more hazardous division of the same occupancy group or into a different group of occupancies and constitutes a greater degree of life safety1 or increased fire risk2 , shall require the installation of an approved fire automatic fire sprinkler system.
1 Life Safety - Shall include, but not limited to: Increased occupant load, public assembly areas, public meeting areas, churches, indoor amusement attractions, buildings with complex exiting systems due to increased occupant loads, large schools/day-care facilities, large residential care facilities housing non-ambulatory clients.
2 Fire Risks - Shall include, but not limited to: High-piled combustible storage, woodworking operations, hazardous operations using hazardous materials, increased fuel loads (storage of moderate to highly combustible materials), increased sources of ignition (welding, automotive repair with the use of flammable liquids and open flames).

8. The obligation to provide compliance with these fire sprinkler regulations may not be evaded by performing a series of small additions and/or alterations undertaken over a threeyear period and/or two code cycles. The permit issuance dates of past additions and/or alterations where these regulations were in effect shall be used for determining compliance. a. Any submittal for building permits which exceed fifty (50) percent and/or seven hundred and fifty (750) square feet of existing floor areas (area calculations shall not include existing basement floor areas and any non-habitable floor areas i.e., garages) during the three-year period shall comply with fire sprinkler regulations. b. No waiver shall be granted from compliance with fire sprinklers.

Section 903.2.11.7 is amended to read as follows:
903.2.11.7 Chemical Fume Hood Fire Protection. Approved automatic fire extinguishing systems shall be provided in chemical fume hoods in the following cases:

1. Existing hoods having interiors with a flame spread index greater than 25 in which flammable liquids are handled

2. If a hazard assessment determines that an automatic extinguishing system is required for the chemical fume hood, then the applicable automatic fire protection system standard shall be followed.

Section 907.8 is amended to read as follows:
907.8 Inspection, testing and maintenance. The maintenance and testing schedules and procedures for fire alarm and fire detection systems shall be in accordance with Sections 907.8.1 through 907.8.4 and NFPA 72. Records of inspection, testing and maintenance shall be documented using NFPA 72 record of inspection and testing forms.
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12.08.030 Correction of violations.

The issuance or granting of a permit or approval of plans under this Title shall not prevent the administrative authority from thereafter requiring the correction of errors in such plans and specifications, or from preventing construction operations being carried on thereunder when in violation of this Code or of any other law, or from revoking any certificate of approval when issued in error.

A. The 2022 California Building Code referred to in Section 12.08.010 is adopted, together with Chapter 1 of the 2022 California Building Code, with the following amendments and certain Appendix Chapters as follows:

Chapter 1, Division II, Section 105.5 and 105.5.1 is deleted and replaced to read as follows, as an administrative clarification, and does not modify a building standard pursuant to California Health & Safety Code Sections 17958, 17958.7 and/or 18941.5. This amendment establishes administrative standards for the effective enforcement of the building standards in the City of Los Altos.

Expiration. Every permit issued shall become invalid unless the work on the site authorized by such permit is commenced within twelve (12) months after its issuance, or if the work authorized on the site by such permit is suspended or abandoned for a period of twelve (12) Months after the time the work is commenced. The building official is authorized to grant, in writing, one or more extensions of time for periods not more than one hundred eighty (180) days each. For the purpose of this section, failure to progress a project to the next level of required inspection, as determined by the building official, shall be deemed to be suspension of the work. The extension shall be requested in writing and justifiable cause demonstrated.

The building official is authorized to grant, in writing, no more than three extensions or reactivations of permits that would otherwise expire or reactivations of expired permits, for periods not more than 180 days each and may require:

1. That construction documents be revised to partially or fully to comply with current codes and ordinances; and

2. Payment of all applicable permit fees; and

3. Payment of a penalty pursuant to Chapter 12.72 of the Los Altos Municipal Code.

Extensions and reactivations shall be requested in writing and justifiable cause demonstrated.

Additional extensions or reactivations beyond three may only be granted with the approval of the City Council.

Term limit for permits. All work associated with a building permit must be completed, and final inspection issued, within forty-eight (48) months of permit issuance. Once a term limit has been exhausted without obtaining an approved final inspection the permit will automatically become void.

The building official is authorized to allow a new permit application to be applied for the original scope of work and may require:

1. That construction documents be revised to partially or fully to comply with current codes and ordinances; and

2. Payment of all plan review and permit fees; and
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3. Payment of a penalty pursuant to Chapter 12.72 of the Los Altos Municipal Code.

Before such work can be recommenced, a new permit shall be first obtained, and the fee therefore shall be one-half the amount required for a new permit for such work provided no changes have been made, or will be made, in the original plans and specifications for such work; and provided, further, that such a suspension or abandonment has not exceeded one year. In order to renew action on a permit after one year expiration, the permittee shall be required to pay original full building permit fees.

For the purpose of this section, failure to progress a project to the next level of required inspection shall be deemed abandonment of the project.

For those projects that are residential only, the Building Official may modify expired permit fees when the owner can demonstrate that the project has received all required inspections, except for the Building Division final. The fee amount of one five hundred dollars ($1500) shall be required within ten (10) working days of notice and the project shall achieve a final inspection within thirty (30) days of payment received, otherwise expired permit fees as noted above shall be required.

B. Work commencing before permit issuance. Whenever any work for which a permit is required by the California Code of Regulations as adopted in this chapter has been commenced without first obtaining said permit, the building official shall charge a minimum of two times and/or up to four times, for repeat offenders, on all applicable plan review and permit (inspection) fees related to the required permit(s), including, but not limited to, building permits (including, but not limited to electrical, fire, mechanical and plumbing), sign permits and demolition permits. The legal registered owner of said property shall obtain a building permit within thirty (30) days of any violation letter or stop-work notice issued by the City of Los Altos. The payment of the increased fee(s) shall not relieve any person from fully complying with the requirements of this code, other codes adopted by the City, or the requirements of the zoning ordinance. Failure to comply with the provisions of this chapter may also subject the violator to any other penalties, sanctions or remedies provided elsewhere in this code. This provision shall not apply to emergency work when the administration authority determines that such work was urgently necessary and that it was not practical to obtain a permit therefore prior to the commencement of such work. In such cases, a permit shall be obtained as soon as it is practical to do so; and if there is an unreasonable delay (exceeding two working days) in obtaining such permit, a fee as provided in this section shall be charged.

Once building permits are issued pursuant to work commenced without required permits, it is the responsibility of the permit holder to obtain their first required building inspection within thirty (30) days from permit issuance date and shall receive a project final inspection within a one-year period. Any further delays will require additional building permit fees charged again in the original amount with an additional 30-day extension. If the project continues without meeting these deadlines, Administration Citation Fees and/or other legal remedies allowed by local, or state law shall be imposed.

Created: 2023-05-16 13:58:04 [EST]
(Supp. No. 40, Update 1)

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12.08.040 Fee refunds.

The building official may authorize refunding of any fee paid hereunder which was erroneously paid or collected.

The building official may authorize refunding of not more than eighty (80) percent of the permit fee paid when no work has been done under a permit issued in accordance with this code.

The building official may authorize refunding of not more than eighty (80) percent of the plan review fee paid when an application for a permit for which a plan review fee has been paid is withdrawn or canceled before any plan reviewing is done.

The building official shall not authorize refunding of any fee paid except on written application filed by the original permittee not later than one hundred eighty (180) days after the date of fee payment.
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Title 12 - BUILDINGS AND CONSTRUCTION
Chapter 12.10 RESIDENTIAL CODE

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Chapter 12.10 RESIDENTIAL CODE

12.10.010 Adoption of the California Residential Code.

The 2022 California Residential Code, contained in the California Code of Regulations, Title 24, Part 2.5, published by the California Building Standards Commission and the International Code Council, which incorporates and amends the 2021 International Residential Code 2021 Edition, is hereby adopted. There is one copy of said code on file in the office of the Building Official for use and examination by the public.

12.10.020 Amendments.

The 2022 California Residential Code referred to in Section 12.10.10 is adopted, together with Chapter 1 of the 2022 California Residential Code, with the following amendments to read as follows:

Chapter 3 Section R301.1.3.2 is deleted and replaced to read as follows, based upon the express finding of necessity set forth in section 9.B.1. of this Ordinance.

R301.1.3.2 Wood frame structures. The building official shall require construction documents to be approved and stamped for structural compliance by a California licensed architect or engineer for all dwellings of wood frame construction more than one story in height located in Seismic Design Category D0, D1, D2, or E.

Chapter 3 Section R313.1 and Section R313.2 are deleted and replaced to read as follows, based upon the express finding of necessity set forth in section 9.B.2. of this Ordinance.

Section R313.1 is amended to read as follows:

R313.1 Townhouse automatic fire sprinkler systems. An automatic residential fire sprinkler system shall be installed in accordance with National Fire Protection Association's (NFPA) Standard 13D in all new townhouses and in existing townhouses, when additions are made that increase the building area to more than the allowable Fire-Flow Appendix B, Tables B105.1(1) and B105.1(2) of the 2022 California Fire Code, and/or additions exceeding fifty (50) percent of the existing living area (existing square foot calculations shall not include existing basement) and/or additions exceeding seven hundred and fifty (750) square feet. When automatic fire sprinkler systems are required by this section, all associated attached garages shall be included.

Additions over fifty (50) percent and/or seven hundred and fifty (750) square feet as referenced above, shall be treated as a new structure regarding installation of fire sprinkler systems. For the purpose of this section, removal of roof framing with associated exterior walls down to, or below the subfloor/slab shall be included in the above calculations. Therefore, the following shall apply:

The obligation to provide compliance with these fire sprinkler regulations may not be evaded by performing a series of small additions undertaken over a three-year period. The permit issuance dates of past additions where these regulations were in effect shall be used for determining compliance.
a. Any submittal for building permits which exceed fifty (50) percent and/or seven hundred and fifty (750) square feet of existing floor areas (area calculations shall not include existing basement floor areas and any non-habitable floor areas i.e., garages) during the three-year period shall comply with fire sprinkler regulations. 282
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b. No waiver shall be granted from compliance with fire sprinklers.

Section R313.2 is amended to read as follows:

R313.2 One and two-family dwellings automatic fire sprinklers systems. An automatic residential fire sprinkler system shall be installed in accordance with National Fire Protection Association's (NFPA) Standard 13D in all new one and two-family dwellings and in existing dwellings, when additions are made that increase the building area to more than the allowable Fire-Flow Appendix Tables B105.1(1) and B105.1(2) of the 2022 California Fire Code, and/or additions exceeding fifty (50) percent of the existing living area (existing square foot calculations shall not include existing basement) and/or additions exceeding seven hundred and fifty (750) square feet. When automatic fire sprinkler systems are required by this section, all associated garages shall be included. Additions over fifty (50) percent and/or seven hundred and (750) square feet as referenced above, shall be treated as a new structure regarding installation of fire sprinkler systems. For the purpose of this section, removal of roof framing with associated exterior walls down to, or below the subfloor/slab shall be included in the above calculations.

Therefore, the following shall apply:

The obligation to provide compliance with these fire sprinkler regulations may not be evaded by performing a series of small additions undertaken over a three-year period and/or two California Building Standards Code Cycles. The permit issuance date of past additions where these regulations were in effect shall be used for determining compliance. a. Any submittal for building permits which exceed fifty (50) percent and/or seven hundred and fifty (750) square feet of existing floor areas (area calculations shall not include existing basement floor areas and any non-habitable floor areas i.e., garages) during the three-year period shall comply with fire sprinkler regulations. b. No waiver shall be granted from compliance with fire sprinklers.

Exceptions:

1. Detached Accessory Dwelling Unit, provided that all of the following are met:

1.1. The unit meets the definition of an Accessory Dwelling Unit as defined in the Government Code Section 65852.2.

1.2. The existing primary residence does not have automatic fire sprinklers.

1.3. The accessory detached dwelling unit does not exceed 1,200 square feet in size.

1.4. The unit is on the same lot as the primary residence.

1.5. The unit meets all apparatus access and water supply requirements of Chapter 5 and Appendix B of the 2022 California Fire Code.

Chapter 6 Section R602.10.4.3.1 and Table R602.10.3 (3) footnote "i" are new sections added to read as follows, based upon the express finding of necessity set forth in section 9.B.3. of this Ordinance.

Amend Section R328.7 to read as follows:

R328.7 Fire detection. Rooms and areas within dwelling units, basements and attached garages in which ESS are installed shall be protected by smoke alarms in accordance with Section R314.

A heat detector, listed and interconnected to the smoke alarms, shall be installed in locations 283
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within dwelling units and attached garages where smoke alarms cannot be installed based on their listing.

ESS installed in Group R-3 and townhomes shall comply with the following:

1. Rooms and areas within dwellings units, sleeping units, basements and attached garages in which ESS are installed shall be protected by smoke alarms in accordance with Section R314.

2. A listed heat alarm interconnected to the smoke alarms shall be installed in locations within dwelling units, sleeping units, and attached garages where smoke alarms cannot be installed based on their listing.

Exceptions:

1. A listed heat detector may be used in place of a heat alarm, so long as it is interconnected with devices that provide an audible alarm at all sleeping areas.

2. A fire sprinkler associated with an approved automatic sprinkler system that triggers an audible alarm upon activation of the waterflow switch, may be used in place of a heat alarm.

Add a new subsection R602.10.4.3.1 to read as follows:

R602.10.4.3.1 Limits on methods GB and PCP. In Seismic Design Categories D0, D1, and D2, Method GB is not permitted for use as intermittent braced wall panels, but gypsum board is permitted to be installed when required by this Section to be placed on the opposite side of the studs from other types of braced wall panel sheathing. In Seismic Design Categories D0, D1, and D2, the use of Method PCP is limited to accessory structures.

Add a new footnote "i" to the end of CRC Table R602.10.3(3), after the five footnotes (a) - (f) currently shown, to read:
g. In Seismic Design Categories D0, D1, and D2, Method GB is not permitted, and the use of Method PCP is limited to accessory structures.

C. Only the following Appendix Chapters from the California Residential Code are adopted:

1. Appendix H, Patio Covers.

12.10.030 Correction of violations.

Correction of violations shall be pursuant to Chapter 12.08 of the Los Altos Municipal Code.

The issuance or granting of a permit or approval of plans under this Title shall not prevent the Administrative Authority from thereafter requiring the correction of errors in such plans and specifications, or from preventing construction operations being carried on thereunder when in violation of this Code or of any other law, or from revoking any certificate of approval when issued in error.

A. The 2022 California Residential Code referred to in Section 12.10.010 is adopted, together with Chapter 1 of the 2022 California Residential Code, with the following amendments and certain Appendix Chapters as follows:
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Chapter 1, Division II, Section 105.5 is deleted and replaced to read as follows, as an administrative clarification, and does not modify a building standard pursuant to California Health & Safety Code Sections 17958, 17958.7 and/or 18941.5 This amendment establishes administrative standards for the effective enforcement of the building standards in the City of Los Altos.

Expiration. Every permit issued shall become invalid unless the work on the site authorized by such permit is commenced within 12 months after its issuance, or if the work authorized on the site by such permit is suspended or abandoned for a period of 12 months after the time the work is commenced. The building official is authorized to grant, in writing, one or more extensions of time for periods not more than 180 days each.

Before such work can be recommenced, a new permit shall be first obtained, and the fee therefore shall be one-half (1/2) the amount required for a new permit for such work provided no changes have been made, or will be made, in the original plans and specifications for such work; and provided, further, that such a suspension or abandonment has not exceeded one year. In order to renew action on a permit after one year expiration, the permittee shall be required to pay original full building permit fees.

For the purpose of this section, failure to progress a project to the next level of required inspection shall be deemed abandonment of the project.

For those projects that are residential only, the Building Official may modify expired permit fees when the owner can demonstrate that the project has received all required inspections, except for the Building Division final. The fee amount of one hundred dollars ($100) shall be required within ten (10) working days of notice and the project shall achieve a final inspection within 30 days of payment received, otherwise expired permit fees as noted above shall be required.

B. Work commencing before permit issuance. Whenever any work for which a permit is required by the California Code of Regulations as adopted in this chapter has been commenced without first obtaining said permit, the building official shall charge a minimum of two times and/or up to four times, for repeat offenders, on all applicable plan review and permit (inspection) fees related to the required permit(s), including, but not limited to, building permits (including, but not limited to electrical, fire, mechanical and plumbing), sign permits and demolition permits. The legal registered owner of said property shall obtain a building permit within 30 days of any violation letter or stop-work notice issued by the City of Los Altos. The payment of the increased fee(s) shall not relieve any person from fully complying with the requirements of this code, other codes adopted by the city, or the requirements of the zoning ordinance. Failure to comply with the provisions of this chapter may also subject the violator to any other penalties, sanctions or remedies provided elsewhere in this code. This provision shall not apply to emergency work when the administration authority determines that such work was urgently necessary and that it was not practical to obtain a permit therefore prior to the commencement of such work. In such cases, a permit shall be obtained as soon as it is practical to do so; and if there is an unreasonable delay (exceeding two working days) in obtaining such permit, a fee as provided in this section shall be charged.

Once building permits are issued pursuant to work commenced without required permits; it is the responsibility of the permit holder to obtain their first required building inspection within thirty (30) days from permit issuance date and shall receive a project final inspection within a one-year period. Any further delays will require additional building permit fees charged again in the original 285
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amount with an additional 30-day extension. If the project continues past this deadline to obtain a required building inspection, Administration Citation Fees and/or other legal remedies allowed by local, or state law shall be imposed.

Failure to contact the Building Division within five business days of receiving the violation notice may result in Administration Citation Fees, Chapter 1.30 of the Los Altos Municipal Code. (Ord. No. 2016-426 , § 7, 11-8-2016; Ord. No. 2019-464 , §§ 7, 8, 12-10-2019; Ord. No. 2022-487 , §§ 7, 8, 11-29-2022)
Editor's note(s)—Ord. No. 2016-426 , § 7, adopted November 8, 2016, repealed former § 12.10.030, and enacted a new § 12.10.030 as set out herein. Former § 12.10.030 pertained to definitions and derived from Ord. No. 2013-395 , adopted December 10, 2013.

12.10.040 Fee refunds.

The building official may authorize refunding of any fee paid hereunder which was erroneously paid or collected.

The building official may authorize refunding of not more than eighty (80) percent of the permit fee paid when no work has been done under a permit issued in accordance with this code.

Title 12 - BUILDINGS AND CONSTRUCTION
Chapter 12.72 PENALTY FOR EXPIRED PERMITS

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Chapter 12.72 PENALTY FOR EXPIRED PERMITS

12.72.010 Application.

This chapter shall apply to all residential, non-residential, and commercial, construction and demolition, including, but not limited to, all additions, alterations, modifications, repairs, and improvements, that require a building permit or demolition permit.

12.72.020 Timely renewal of expired permits.

In the event a permit expires under Chapter 12 of the Los Altos Municipal Code for suspension or abandonment of work, the property owner shall seek renewal of the permit within thirty (30) days following its expiration.

12.72.030 Penalty for expired permits.

A property owner shall be subject to the following penalties for violation of section 12.72.020:

Time for Permit Expiration Penalty
0 to 30 days $0
31st day through 60th day $200.00 per day
61st day through 120th day $400.00 per day
121st day and everyday
thereafter
$800.00 per day
a) For purposes of this section, if a renewed permit expires and the property owner has not advanced a project to the next level of required inspection, the calculation of penalties shall relate back to the date of the previous permit expiration. b) The building official may reduce or waive a penalty accrued under this chapter upon finding that the property owner acted in good faith and either: (1) the delay was attributable to circumstances beyond the property owner’s control; or (2) imposition of the full accrued penalty would harm the public interest, provided, however, that and reduction or waiver of more than $10,000 must be approved by the Development Services Director.

12.72.040 Appeal of assessed penalty.

A property owner may request a hearing to contest a citation issued under this chapter in accordance with Title 1 of the Los Altos Municipal Code.

12.72.050 Public Nuisance declared.

Any violation of this chapter shall constitute a public nuisance and, in addition to being subject to any other remedies allowed by law, may be abated as provided in Chapter 11.10 of the Los Altos Municipal Code.
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Reviewed By:

City Manager City Attorney
GE JH

AGENDA REPORT SUMMARY
Meeting Date: August 22, 2023
Subject: Introduce and waive further reading of Mechanical Equipment Ordinance Prepared by: Nick Zornes, Development Services Director Reviewed by: Jon Maginot, Assistant City Manager
Approved by: Gabriel Engeland, City Manager
Initiated by:

City Council.

Environmental Review:

Ordinance is exempt from environmental review pursuant to Section 15061(b)(3) of the State Guidelines implementing the California Environmental Quality Act of 1970.

Fiscal Impact:

None.

Attachments:

1. Draft Ordinance with Appendices

2. Example Ordinance Language
Prior Consideration:

The draft ordinance was introduced on June 27, 2023, with minor modifications regarding the definition of mechanical equipment and other non-substantive clarifications. On July 11, 2023, the draft ordinance was on consent for adoption by the City Council. Subsequently at the second reading of the ordinance the item was pulled from consent after additional information was provided by the community. After significant discussion the City Council voted to reduce the required setback requirement for mechanical equipment from the proposed ten (10) feet to five (5) feet and revert to the originally proposed mechanical equipment definition contained within the draft ordinance from June 27, 2023.

Summary:

The draft ordinance proposed accomplishes the goal of eliminating or reducing future noise violations created by mechanical equipment in the side yard setbacks of properties within the City of Los Altos. The proposed ordinance was drafted based upon research conducted by evaluating 288
Agenda Item # 12.

Subject: Mechanical Equipment Ordinance
August 22, 2023 Page 2
how other Santa Clara County jurisdictions enforce setback requirements for noise generating mechanical equipment.

Staff Recommendation:

Introduce and Waive Further Reading of an Ordinance of the City Council of the City of Los Altos Adding Chapter 11.14 Mechanical Equipment to Title 11 Miscellaneous Property Regulations of the Los Altos Municipal Code and find that this action is Exempt from Environmental Review Pursuant to Section 15061(b)(3) of the State Guidelines Implementing the California Environmental Quality Act of 1970.

Background
In May 2022, the City Council requested that staff bring back an ordinance to address noise concerns from mechanical equipment in the side yard setbacks of properties throughout the city.

City staff researched what other cities throughout Santa Clara County have in place for mechanical equipment regulations.

Presently, there are no codified setback requirements for mechanical equipment such as air conditioning units within the Los Altos Municipal Code. For several years the City’s Planning Division has “estimated” setback requirements based on internet-based data in an effort to demonstrate compliance of air conditioning units pursuant to the noise limits set in Chapter 6.16 of the Los Altos Municipal Code. The City’s reliance on non-codified setbacks has proven to be ineffective as noise violations still are present regardless of meeting the “estimated” setback requirements to meet compliance with the Noise Ordinance.

Analysis
Mechanical equipment regulations differ greatly from jurisdiction to jurisdiction. However, it is most common that there is a prescribed minimum standard codified into each municipal code.

Discussion
The draft ordinance provides standards for mechanical equipment for the Los Altos Municipal Code. Standards include a general definition which encompasses all noise generating mechanical equipment which the planning division has encountered requiring some sort of noise enforcement.

The setback requirement for any newly installed mechanical requirement as defined shall adhere to the underlying zoning district. When roof mounted equipment is proposed requirements have been integrated to ensure they are architecturally compatible with the structure in which it is affixed. The proposed ordinance will provide that mechanical equipment installations conform with the noise requirements of the Los Altos Municipal Code. 289
Agenda Item # 12.
1 ORDINANCE NO. 2023-__

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LOS ALTOS ADDING CHAPTER 11.14 TO TITLE 11 MISCELLANEOUS PROPERTY REGULATIONS OF

THE LOS ALTOS MUNICIPAL CODE ENACTING REGULATIONS FOR

MECHANICAL EQUIPMENT
WHEREAS, the City Council requested that staff bring back an ordinance amending the City’s Noise Ordinance to further refine regulations regarding mechanical equipment on private property; and
WHEREAS, the amendments are in the best interest for the protection or promotion of the comfort and convenience of the residents of the City of Los Altos because they clarify and improve the standard requirements for mechanical equipment applicable to all properties or parcels throughout the City; and
WHEREAS, the amendments was processed in accordance with the applicable provisions of the California Government Code and the Los Altos Municipal Code; and WHEREAS, the City Council held a duly noticed public hearing on August 22, 2023, and September 12, 2023; and
WHEREAS, this Ordinance is exempt from environmental review pursuant to Section 15061(b)(3) of the State Guidelines implementing the California Environmental Quality Act of 1970, as amended; and
NOW, THEREFORE, the City Council of the City of Los Altos does hereby ordain as follows:

SECTION 1. AMENDMENT OF TITLE 11 OF THE MUNICIPAL CODE. Chapter 11.14 are hereby added of the Los Altos Municipal Code as set forth in Appendix A to this Ordinance.

SECTION 2. CONSTITUTIONALITY; AMBIGUITIES. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions hereof. Any ambiguities in the Los Altos Municipal Code created by this Ordinance shall be resolved by the Development Services Director, in their reasonable discretion, after consulting the City Attorney.

SECTION 3. PUBLICATION. This Ordinance shall be published as provided in Government Code Section 36933.

SECTION 4. EFFECTIVE DATE. This Ordinance shall be effective upon the commencement of the thirty-first day following the adoption hereof.

NOES:

ABSENT:

ABSTAIN:
___________________________________
Sally Meadows, MAYOR
Attest:
____________________________
Melissa Thurman MMC, City Clerk
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Agenda Item # 12.

APPENDIX A
AMENDMENTS TO CHAPTER 11.14
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Agenda Item # 12.
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Agenda Item # 12.

APPENDIX A
AMENDMENTS TO CHAPTER 11.14
Chapter 11.14 – MECHANICAL EQUIPMENT
Section 11.14.010 – Purpose
A. The purpose and intent of this chapter is to provide a uniform and comprehensive set of regulations and standards for mechanical equipment on any property or parcel in the City of Los Altos. These regulations are intended to prescribe clear criteria for permitting, siting, and installation of all mechanical equipment and appurtenances.

Section 11.14.020 – Definition
“Mechanical Equipment” includes but is not limited to heating or air conditioning units, sump pumps, generators, and ventilation equipment and appurtenances.

Section 11.14.030 – Applicability
A. This chapter shall apply to all new mechanical equipment and appurtenances requiring a building permit.

B. Existing mechanical equipment and appurtenances that were lawfully permitted before the effective date of this chapter shall be deemed legal nonconforming. i. When existing mechanical equipment and appurtenances are voluntarily being eliminated or replaced, the new mechanical equipment shall comply with all provisions of this chapter.

Section 11.14.040 – General Standards
A. Any mechanical equipment and appurtenances which are higher than eighteen inches as measured from the surface immediately adjacent shall comply with the side and rear yard setbacks of the zoning district of the property where such equipment is located. i. Mechanical equipment and appurtenances shall not be located closer than five (5) feet from any property line.

B. All mechanical equipment and appurtenances shall be screened from public view.

C. All mechanical equipment and appurtenances shall comply with the noise requirements set forth in Chapter 6.16.

Section 11.14.050 – Roof Mounted Equipment and Appurtenances A. All roof mounted equipment and appurtenances shall be shielded and architecturally screened from public view as visible from any property line of the subject site. i. All screening material shall be compatible with and integrated into the architectural design of the existing or proposed structure the equipment and appurtenances are immediately affixed to and shall be equal to or taller than the height of the equipment.
ii. Any noise generating roof mounted equipment and appurtenances shall be required to conduct a noise reading by a certified acoustical consultant and furnish a signed letter indicating compliance with the City of Los Altos Noise Ordinance, Chapter

6.16. 294
Agenda Item # 12.

AGENDA REPORT SUMMARY

Reviewed By:

City Manager City Attorney
GE
Finance Director
JH JD
Meeting Date: August 22, 2023
Subject: Los Altos Legislative Body Travel Policy
Prepared by: Anthony Carnesecca, Assistant to the City Manager Reviewed by: Jon Maginot, Assistant City Manager
Approved by: Gabriel Engeland, City Manager
Attachment(s):

1. City of Los Altos Policy – Training and Travel Expense Policy for Members of Legislative Body

2. Request for Travel Authorization

3. Statement of Travel Expenses
Initiated by:

City Council
Previous Council Consideration:

March 28, 2023 & July 11, 2023
Fiscal Impact:

None
Environmental Review:

Not applicable
Policy Question(s) for Council Consideration:
 Does the City Council wish to adopt the Legislative Body Travel Policy? Summary:
 City Council requested that City staff come back with a travel policy.  This policy provides clear guidelines and a process for the authorization and administration of public funds for travel expenses and reimbursements for official City business, including a meeting, seminar, training, or conference. 295
Agenda Item # 13.

Subject: Los Altos Legislative Body Travel Policy
August 22, 2023 Page 2
Purpose
Provide guidelines for the authorization and administration of public funds for travel expenses and reimbursements for official City business as they apply to members of legislative bodies, including the Council and Commissions.

Background
At the March 28, 2023 meeting, City Council directed staff to bring this item back for discussion during Future Agenda Items.

At the July 11, 2023 meeting, City Council directed staff to come back with a policy.

Discussion/Analysis
City staff drafted a Legislative Body Travel Policy that is compliant with AB 1234 and California Government Code Section 53232 et seq.

The policy provides all legislative body members with the ability to receive reimbursement for any official City travel for a meeting, seminar, training, or conference.

This process requires that the interested member shall complete the Request for Travel Authorization with all information regarding meeting, travel dates, travel plan, hotel information, estimated costs, and justification for the event at least sixty days before registration for the meeting closes. Then, the legislative body shall agendize the request as early as feasible for review.

Following an event for which a reimbursement claim has or will be submitted, the official seeking reimbursement shall briefly report on the event during a regular meeting no more than 30 days after the claim has been fulfilled. If multiple officials attended, a joint report may be made. This report may be made verbally or provided as a written report to be included as information in the agenda packet.

In accordance with standard government travel policies, the member shall choose the least expensive option for the City and utilize government or group rates when available with regards to any expenses, such as transportation or lodging.
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CITY OF LOS ALTOS POLICY AND PROCEDURE

TRAINING AND TRAVEL EXPENSE POLICY

FOR MEMBERS OF LEGISLATIVE BODY

PURPOSE AND SCOPE
The purpose of this policy is to provide guidelines for the authorization and administration of public funds for travel expenses and reimbursements for official City business as they apply to members of legislative bodies. For ease of reading, members of legislative bodies refers to Mayor, Vice Mayor, Council members, and Commission members in the following policy. Additionally, meetings can refer to any meeting, seminar, training, or conference in the following policy.

All travel paid by the City shall be for business and training purposes that is of value to the City and its residents. All expenses incurred while on City business shall constitute actual and necessary expenses that are reasonable and justified use of public funds. When traveling, members shall choose the most cost efficient, direct and economical travel options available. This policy shall be consistent with AB 1234.

City officials shall keep in mind that some expenditures shall be subject to reporting under the Political Reform Act and other laws. All agency expenditures are subject to disclosure under the Public Records Act.

POLICY
The purpose of this policy is to establish business travel guidelines for members that are fair, accountable and transparent. This policy addresses the criteria for City payment of travel expenses and/or advances incurred by the member. Only the authorized members are eligible for reimbursement.

This policy supplements the definition of actual and necessary expenses for purposes of state laws relating to permissible uses of public resources. This policy also supplements the definition of necessary and reasonable expenses for purposes of federal and state income tax laws.

City funds, equipment, supplies, and staff time must only be used for authorized City business and shall not exceed the adopted budget appropriation.

The Council's training and travel budget shall include a separate appropriation for all Council members to attend the League of California Cities Annual Conference.

INTERNAL CONTROLS
In order to safeguard public funds, all of the following internal controls shall be followed by all members that incur expenses while traveling on City business:
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 All members are responsible for reading and complying with this policy;,  All training and travel expenses shall be properly authorized by the legislative body in advance of travel, except in emergency by the City Manager;,
 The duties between the travel authorization and reimbursement payment shall be properly segregated;,
 All training and travel expenses shall be properly supported by adequate documentation;,  All reimbursement claims shall be filed in accordance with the policy;,  If an advance check is provided, the member shall make certain the amount corresponds to the total estimated expenses minus any prepayment;,
 It shall also be the responsibility of the member to be aware of and understand the estimate of expenses established by the estimate. The member shall monitor expenses to ensure they are within the estimated amount unless unusual circumstances exist and if so, document such circumstances;,  Prior to any travel during which reimbursable expenses will be incurred, the member shall estimate the expenses which will be incurred as a direct result of the travel and attendance at the training or conference;, and
 It shall be the responsibility of the member incurring the expenses to provide the proper documentation for each expense, including receipts as required.

GENERAL GUIDELINES
Allowable Expenses

1. Allowable expenses are those that are properly authorized and shall include, but are not limited to, authorized business expenses incurred while engaging and/or participating in the following activities and/or events, which meet the criteria listed below:
 The meeting is mandatory and/or necessary to accomplish key City goals and objectives. Such activities include, but are not limited to:
 Participating in and attending meetings of regional, state and national organizations whose activities affect the City’s interests;,
 Attending educational seminars designed to improve skill and information levels that may be benefit to the City;, and
 Attending business meetings, functions of local civic or community organizations where there is a clear nexus between the event and their official City duty, i.e., not purely social events.
 If the training location requires an overnight stay, efforts shall be made to ensure no local option is available. Government rates shall be used when available. Attendance at conferences and travel time to and from the conference shall receive prior approval from the legislative body.  Registration fees will be fully paid by the City via check or credit card. Any discounts offered for early registration or attendance by additional persons shall be obtained whenever possible.

PROHIBITED EXPENDITURES
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1. The following are examples, but are not all inclusive, of personal expenses for which the City shall not reimburse the member, even when incurred in conjunction with other approved reimbursable expenses:
 Receipts that are not itemized;,
 Any expenses that have not been properly authorized;,  Double-dipping of expenses (submitting the same expense for reimbursement more than once through the same or various means);,
 Expenses incurred as a result of supplemental personal travel;,  Political or charitable contributions or events;,
 Family or companion expenses, including those related to child or pet care;,  Entertainment expenses;,
 Meals for any person other than the member;,
 Non-mileage personal automobile expenses, including repairs, traffic citations, insurance or gasoline;, air flight upgrades
 Personal losses incurred while on City business;,
 Inaccurate receipts that are greater than the reimbursable cost of the item;,  Alcohol and gambling expenses;,
 Traffic and toll violations;, and
 Any expenses incurred by individuals that are not members;.

2. Payments for travel and expenses shall be requested as an advance, prepayment or reimbursement of appropriate expenses for lodging, food, transportation and incidental expenses. Reimbursement of expenses shall be made only for members; no reimbursement is allowed for non-members accompanying the attendee.

3. All reimbursement claims or advances for travel and expenses (including registration) shall be accompanied by sufficient supporting documentation including properly approved Request for Travel Authorization Form, original receipts, copies of registration forms, invoices, cancelled checks or notation for any receipts that are lost. An exception to this requirement is listed under section entitled Meal Costs.

LODGING, MEALS AND TRANSPORTATION

Airfare

1. Use of air, train, private automobile, or other mode of transportation shall be selected on the basis of the least expensive option for the City. Government and group rates shall be used when available.

2. Transportation costs to and from the authorized destination shall not exceed advance purchase economy class airfare unless such fare is not available. Members shall inquire as to any government discount the airlines may provide. The City shall not pay for upgrades (e.g. seat upgrades or early boarding options) without prior approval from the legislative body.

3. Members shall receive reimbursement for additional expenses (checked bags, travel insurance, etc.) with prior authorization.
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Agenda Item # 13.

Automobile

1. Automobile mileage shall be reimbursed at the rate set by the Internal Revenue Service (IRS) in effect at the time of travel and will be reimbursed for the distance between home and the destination or work and the destination, whichever is less. The Finance Division shall be responsible for determining the applicable rate at the time of travel. This amount does not include bridge and road tolls, which are reimbursable at actual rates. Mileage reimbursement shall be submitted within thirty (30) days of travel.

2. If a personal vehicle is used to and from the airport, the actual mileage shall be reimbursed. If a personal vehicle is left at the airport, the reimbursement shall be the lesser of the following: round trip and parking costs compared with shuttle transportation.

3. The necessity for a rental car must be established and authorized in advance by the legislative body.

Only economy car models shall be rented, unless the upgrade is provided at no additional cost to the City. Prepaid gas is not to be selected, but optional insurance is required and shall be reimbursed. The member is required to notify the City’s Risk Manager immediately in the event of any incident or accident related to the rental vehicle.

Taxis/Shuttles

1. Whenever possible, hotel courtesy buses or local shuttle services shall be used. Taxi service shall be used only when no other convenient, less costly transportation is available.

Lodging

1. No lodging expenses incurred by members within a 50-mile radius shall be reimbursed unless there are extenuating circumstances with prior legislative body approval.

2. The number of nights in the hotel shall be equal to the number of days at the conference unless prior legislative body approval for an additional night prior or afterward for necessary and legislative body related activities.

3. Lodging expenses shall be prepaid directly to the hotel or reimbursed. Prepayment or reimbursement shall be limited to single occupant room rates. Lodging reimbursement shall not exceed conference hotel cost or host group rate. If conference lodging is not available, prepayment or reimbursement will be made for alternate lodging, but shall not exceed the conference hotel cost or host group rate. No reimbursement shall be made when lodging is at a family/friend’s residence.

Meal Costs

1. The City shall reimburse for documented meal expenses including gratuity (not to exceed 15%), according to the daily Maximum Federal Rate. For per diem rates within the US, the member shall use rate listed on http://www.gsa.gov/. If the destination city is not listed, then the rate for the county applies. If there is no rate for the city or county, the lowest rate applies.

2. Meal expenses, including gratuity, in excess of the daily Maximum Federal Rate shall not be reimbursed without approval of the legislative body.
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Agenda Item # 13.

3. The per diem rates are to be reimbursed only for full days of travel (travel away from City overnight). If there is a partial day of travel, the City shall reimburse meal based on the Federal Meal Rate.

4. If any meal is included in the registration fee or the hotel fee, the member shall not receive reimbursement for the included meal. For example, if lunch is included in the registration fee, then the full day per diem will be less the per diem allocated for lunch.

5. If a member returns home after 1:00 p.m., the member will receive the per diem for breakfast and lunch.

If a member returns home after 6:00 p.m., the member shall receive the full day’s per diem.

Miscellaneous Expenses

1. Expenses related to City business shall be reimbursed for actual telephone, fax, parking expenses, tolls, tipping (non-meal related as this falls under the Maximum Federal Rates), taxi, hotel wireless charges, or other reasonable expenses. Miscellaneous expenses shall be itemized and receipts shall be provided.

Where receipts are not available, a signed declaration of expenditures shall be accepted by the City Manager or designee at their discretion.

2. Incidental expenses incurred for fees and tips given to porters, baggage carriers and hotel staff shall be reimbursed up to General Service Administration (GSA) limit (currently at $5 per day). If the member receives a full day’s per diem, no additional incidentals shall be provided, as this is already included in the GSA daily rate.

3. Personal expenses (e.g. shoe shine, in-room entertainment, personal phone calls, traffic fines, etc.) shall not be reimbursable.

4. If a personal side trip is planned, the City shall reimburse not more than the advance purchase economy class airfare to and from the original destination. Any additional costs related to personal travel shall not be reimbursed by the City.

5. If a companion accompanies a member, only the business cost incurred by the member shall be reimbursed. All costs incurred in addition to the member’s costs shall not be reimbursed by the City.

Business Meeting Expenses

1. Prior to any business meeting, the legislative body shall approve any meal expense based on the Federal Meal Rate or in excess. The itemized receipt shall include the amount of the expense, the date and place of the expense, the business purpose, and who attended the business meeting.

2. Meals shall only be reimbursed for the cost(s) of the eligible item on the meal receipt. Overcharged amounts shall not be reimbursed.

3. Meal reimbursement shall be submitted within 30 business days of the meeting.

PROCEDURE
Member shall comply with the following procedures:
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Agenda Item # 13.

1. Complete the Request for Travel Authorization for City staff and Finance Department with all information regarding meeting, travel dates, travel plan, hotel information, estimated costs, and justification for the event at least sixty days before registration for the meeting closes.

2. The relevant parties shall agendize the request as early as feasible for legislative body review.

3. Legislative body shall approve or deny the proposed travel expenses.

4. Submit requests for registration and any advances or prepaid items within the standard disbursement time period.

5. Members are responsible for turning in all receipts to the Finance Division within 30 business days of returning from travel. Only expenses approved prior to travel shall be reimbursed by the City.

6. Within 30 business days after the member’s return from a trip, a Statement of Travel Expenses (travel and expense report), supported by the Approved Request for Travel Authorization Form, shall be filed with the Finance Division complete with the proper signing authority.

7. All Statement of Travel Expenses shall include copies of documentation of previous prepayments or advances made, including registration, airfare, hotel, training agenda, etc.

8. Following an event for which a reimbursement claim has or will be submitted, the official seeking reimbursement shall briefly report on the event during the next regular meeting of the legislative body and no more than 30 days after the claim has been fulfilled. If multiple officials attended, a joint report shall be made. This report shall be made verbally, or provided as a written report to be included as information in the agenda packet.

Finance Division shall comply with the following procedures:

1. Receives completed Statement of Travel Expenses with the Approved Request for Travel Authorization Form from member.

2. Receives the required backup documentation: Meeting agenda, receipts for airfare, hotel, tax/transit, map to and from if mileage is used, per diem rate of the travel destination from GSA website or meal receipts with details if actual meal expenses is used.

3. Reviews requested prepayments, advances and reimbursements related to travel. Checks the budget for consistency with budgeted funds.

4. Process Statement of Travel Expenses and provides payment for advances, prepayments or reimbursements.
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Agenda Item # 13.

REQUEST FOR TRAVEL AUTHORIZATION

AND/OR APPROVED TRAINING
Name:

Lodging x Nights
Meals (Estimated amount is based on GSA per diem limits below.

Meals included in registration fees are not reimbursable.

Reimbursement amount is based on actual receipts.)
a. Breakfast x Days
b. Lunch x Days
c. Dinner x Days
Total Meals
Other
Conference Date From: To: Conference Start Time:

Travel Date From: To:

Remarks:
(Provide Brief Description of Course and Attach Announcement) Transportation
Location:
$ -
Travel Method (City Vehicle, Air, etc.) :

Total Estimated Expenses $ -
$ -
$ -
Any Dietary Restrictions? If yes, explain.

Is this budgeted? Budget Account No.:
$ -
Finance Manager Finance Manager's Signature Date
City Manager City Manager's Signature Date
(Provide Reason under Remarks if Travel Date differs from Conference Date)
Purpose of Trip/Name of Course: Estimated Expenses:

Registration
$ -
Airfare
Is this reimbursable from other sources & how much?
Applicant Name Applicant's Signature Date
I have read the City of Los Altos Training & Travel Expense Policy, understand its contents, and agree to abide by its provisions.

Yes No

Page 1 ends

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Agenda Item # 13.

CITY OF LOS ALTOS

STATEMENT OF TRAVEL EXPENSES
(Due within 30 Days of Travel ended)
Name:

Dates: to Conference/Meeting Name :

Location: Purpose:

Per Diem Meals (GSA rates) Incidental Other Daily
Date Breakfast Lunch Dinner Per Diem Hotel Code Amount Total -
-
-
-
-
-
-
-
-
-
-
-
Explain "Other" charge by using appropriate code: Sub-Total - Acct# (Mileage) Mileage -
A - Registration (XXX-5170) Total Expenses -
B - Plane Fare
C - Taxi or Bus Fare Less: City Check- Ck#
D - Parking Fees Less: Advances - Ck#
E - Telephone Less: Calcard Expenses-Card#
F - Miscellaneous - Explain: (Last 6 digits of the card) Net Amount Due- Applicant -
Net Amount Due-City 0.00
I certify that this claim is a true record of expenses incurred on official business for the City of Los Altos during the above period.

Applicant's Signature:

City Manager Signature: Acct# (Non-Mileage):

Finance Department Approval PEID#
Signature: Date Paid
Date: Check#
(xxxx-5180)
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Agenda Item # 13.

CITY OF LOS ALTOS

MILEAGE REIMBURSEMENT
Pay To: Date:

Date Miles Location Activity/Purpose
Total Miles: 0.00 @ 0.655 = $ - ACCT#
(XXXX-5170)
2023 Standard Mileage Rate by IRS
___________________________________ ______________________________________ Claimant Signature Department Head Signature
** Mileage claims must be submitted at least quarterly. Mileage older than 90 days from the submission date will not be reimbursed. **
Finance Department Use Only
PEID# Check# Date Paid
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Agenda Item # 13.

Reviewed By:

City Manager City Attorney
GE
Finance Director
JH JD

AGENDA REPORT SUMMARY
Meeting Date: August 22, 2023
Subject Request From the Town of Los Altos Hills to Engage in Discussions for Future Law Enforcement Services Provided by the City of Los Altos Approved by: Gabriel Engeland, City Manager
Attachment(s):

1. Los Altos Hills Staff Report
Initiated by:

The Town of Los Altos Hills
Previous Council Consideration:

Fiscal Impact:

None
Environmental Review:

This action does not qualify as a “Project” as defined in California Government Code Section 15378(b) of the Guidelines for California Environmental Quality Act (CEQA), and it is also considered a feasibility or planning study for possible future action and exempt under CEQA Guidelines 15262.

Policy Question(s) for Council Consideration:
 Does the City of Los Altos wish to engage in a study of law enforcement services as requested by the Town of Los Altos Hills at their Town Council meeting on 8/17/2023? Summary:
 The Town of Los Altos Hills has requested the City of Los Altos engage in discussions to consider the City providing law enforcement services to the Town.  Attachment #1 is the staff report approved by the Los Altos Hills Town Council and outlines the background of the request.
 Any studies completed as part of the discussions would be paid for by the Town of Los Altos Hills.
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Agenda Item # 14.

Subject: Request From the Town of Los Altos Hills to Engage in Discussions for Future Law Enforcement Services Provided by the City of Los Altos Date Page 2
Staff Recommendation:

Staff recommends engaging in discussions as requested.

Purpose
To receive authorization to engage in discussions and complete any necessary studies to determine if providing law enforcement services to Los Altos Hills is feasible or desirable.

Background
At the Los Altos Hills Town Council meeting on August 17, 2023, the Los Altos Hills Town Council authorized the Los Altos Hills City Manager to engage in discussions with law enforcement entities for future law enforcement services for the Town of Los Altos Hills. The City Manager of Los Altos Hills has requested to discuss this topic with Los Altos.

Discussion/Analysis
The Town of Los Altos Hills has requested to engage the City of Los Altos in discussion to consider if the City can provide law enforcement services to the Town. The discussions and any subsequent studies would be used to determine if the provision of law enforcement services by the City to the Town is feasible or desirable. The discussions and/or studies would not constitute any agreement between the parties. Any item outside of discussions or the completion of a law enforcement services study, paid for by the Town of Los Altos Hills, would require further approval for the City Council of the City of Los Altos.

Recommendation
Staff recommends engaging in discussions as requested.
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Agenda Item # 14.

TOWN OF LOS ALTOS HILLS August 17, 2023
Staff Report to the City
Council
RE: AUTHORIZE THE CITY MANAGER TO ENGAGE IN DISCUSSIONS

FOR FUTURE LAW ENFORCEMENT SERVICES FOR THE TOWN OF

LOS ALTOS HILLS
FROM: Peter Pirnejad, City Manager
RECOMMENDATION: That the City Council:

Motion to authorize the City Manager to engage in discussions with law enforcement entities for future law enforcement services for the Town of Los Altos Hills.

BACKGROUND AND ANALYSIS:

In June 2014, the Town of Los Altos Hills (“Town”) entered into an agreement with the County of Santa Clara (“County”) for law enforcement services (hereinafter “Agreement”). The Agreement establishes that the County will provide law enforcement services within Town limits. The term of the Agreement began June 19, 2014, and terminates on July 1, 2024. The Town and County are both authorized to terminate the Agreement at an earlier time with one hundred and eighty (180) days written notice, with some remaining financial commitments of the Town. At the expiration of the Agreement, the Town and County may renew the Agreement for an additional five (5) year period upon written notice of renewal at least one hundred and eighty (180) days prior to the expiration of the Agreement.

At this time, the Town continues to receive law enforcement services from the County. The Town may eventually choose to renew the Agreement with the County, or the Town may elect to allow the Agreement to expire without renewal. If the Town were to seek out a law enforcement entity, other than the County, to provide law enforcement services within the Town, staff would be required to comply with procurement procedures for professional services as established in the Los Altos Hills Municipal Code.

Los Altos Hills Municipal Code Section 2-4.04 establishes, in part, that all procurement of services, including but not limited to professional services, the cost of which is in excess of sixty thousand dollars ($60,000) must be made through either informal or formal procedures, as established in Section 2-4.04. All procurement of services, the cost of which is more than two hundred thousand dollars ($200,000), must be based upon specifications or a scope of work approved by the City Council. When entering into a contract for services, the skill, ability, and expertise of the entity or person performing the services is a key component of the selection criteria. The services selection should therefore be on the basis of demonstrated competence, overall value to the Town, and on the professional qualifications necessary for the satisfactory performance of the services required. Cost is only one factor in determining the selection. In 308
Agenda Item # 14.

Staff Report to City Council Page 2
Law Enforcement Services
August 17, 2023
accordance with Section 2-4.04, the procurement of services may be made by soliciting requests for proposals or requests for quotations to prospective vendors.

At this time, if the Town were to issue a request for proposals or a request for quotation for law enforcement services staff believe that only the County may respond to the Town’s request. In order to explore all options for law enforcement services, prior to issuing a request for proposals or a request for quotations for future law enforcement services, Town staff would like to have discussions with multiple law enforcement entities about the law enforcement service needs of the Town. Therefore, staff are asking the City Council to authorize the City Manager or his designee to engage in discussions with other law enforcement entities that may be interested in providing law enforcement services within the Town. At this time, staff plan to engage in discussions with both the City of Los Altos and the County of Santa Clara to discuss the law enforcement needs of the Town. At the time that staff believe the Town is ready to issue a request for proposals or request for quotations then staff will bring an item back to the City Council with the request, the scope of services and draft agreement for law enforcement services for Council approval prior to soliciting responses.

ENVIRONMENTAL REVIEW:

This action does not qualify as a “Project” as defined in California Government Code Section 15378(b) of the Guidelines for California Environmental Quality Act. 2023 CITY COUNCIL STRATEGIC PRIORITIES:

Promoting Public Safety is identified in the 2023 Work Plan.

FISCAL IMPACT:

Currently, there is no fiscal impact. This request seeks authorization to initiate discussions with Los Altos.
5382747.1
309
Agenda Item # 14.

City of Los Altos 2023 Tentative Council Agenda Calendar All items and dates are tentative and subject to change unless a specific date has been noticed for a legally required Public Hearing.

Items may be added or removed from the shown date at any time and for any reason prior to the publication of the agenda.

September 12, 2023
Closed Session: TBD
Study Session: Commission Interview Sessions – 5:30 p.m.

AGENDA TITLE: DEPARTMENT:

SPECIAL ITEMS:

CONSENT:

Edits to Commission Handbook
Downtown Parking Plan Contract Dev. Svcs.

CSA Contract CM
Chamber Contract CM
Waive second reading and Adopt Zoning Ordinance Text Amendments implementing programs identified in the adopted housing element, Program 4.C Allow Low Barrier Navigation Centers consistent with AB 101, Program 4.D Allow transitional and supportive housing consistent with State law, Program 4. E Allow employee/farmworker housing consistent with State law, Program 4.F Reasonably accommodate disabled persons’ housing needs. The proposed amendments are exempt from environmental review pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines since there would be no possibility of a significant effect on the environment
Dev. Svcs.

Waive second reading and adopt an Ordinance of the City Council of the City of Los Altos Adding Chapter 12.72 Penalty for Expired Permits and amending Chapter 12.08 and 12.10 of the Los Altos Municipal Code and find that this action is Exempt from Environmental Review Pursuant to Section 15061(b)(3) of the State Guidelines Implementing the California Environmental Quality Act of 1970
Dev. Svcs.

Waive second reading and adopt an Ordinance of the City Council of the City of Los Altos Adding Chapter 11.14 Mechanical Equipment to Title 11 Miscellaneous Property Regulations of the Los Altos Municipal Code and find that this action is Exempt from Environmental Review Pursuant to Section 15061(b)(3) of the State Guidelines Implementing the California Environmental Quality Act of 1970
Dev. Svcs.

Record the Parcel Map of 705 Vista Grande Ave Dev. Svcs. 310
Agenda Item # 15.

City of Los Altos 2023 Tentative Council Agenda Calendar All items and dates are tentative and subject to change unless a specific date has been noticed for a legally required Public Hearing.

Items may be added or removed from the shown date at any time and for any reason prior to the publication of the agenda.

DISCUSSION:

Gateway Art CM
Introduce and waive further reading of an ordinance of the City Council of the City of Los Altos adding chapter 3.16 to the Los Altos municipal code to provide for bidding procedures under the Uniform Public Construction Cost Accounting Act
Finance
Introduce Special Event Ordinance CM
September 26, 2023
Closed Session: TBD
Study Session: TBD
AGENDA TITLE: DEPARTMENT: STAFF: NOTES:

SPECIAL ITEMS:

CONSENT:

Treasury Report Finance
Adopt a resolution to authorize the City Manager to execute the First Amendment to the Agreement between the City of Los Altos and BKF Engineers to develop a streetscape concept plan for the southern segment of First Street, between Main Street and San Antonio Road PW
DISCUSSION:

PUBLIC HEARING:

Appeal – 5790 Arboretum Dr Dev. Svcs.

HEU Ord Downtown Building Height Modifications Dev. Svcs.

Remaining 2023 City Council agenda calendar items are pending and will be published at a later date. 311
Agenda Item # 15.

PROGRAM SUB PROJECT INITIATION DATE HEU COMPLETION DATE STATUS Program 2.D: Encourage and streamline Accessory Dwelling Units (ADUs).

Budget & Hire Planning
Technician December 31, 2022 COMPLETED
Program 2.D: Encourage and streamline Accessory Dwelling Units (ADUs).

Amend ADU Ordinance
based upon HCD's letter 6 months or less
Program 3.H: Amend design review process and
requirements.

Eliminate 3rd Party
Architectural Review February 28, 2023 COMPLETED
Program 3.H: Amend design review process and
requirements.

Dismiss Design Review
Commission February 28, 2023 COMPLETED
Program 3.L: Eliminate the requirement of story poles. March 31, 2023 COMPLETED Program 2.E: Conduct annual ADU rental income surveys.

Budget & Hire Housing
Manager March 31, 2023 IN-PROGRESS
Program 4.J: Facilitate alternate modes of transportation for Adopt VMT Policy & June 30, 2023 COMPLETED Program 2.D: Encourage and streamline Accessory Dwelling Units (ADUs).

RFP-Permit Ready ADU
Plans July 31, 2023 IN-PROGRESS
Program 1.H: Facilitate housing on City-owned sites. Financial Analysis July 1, 2023 December 31, 2023 DEVELOPING RFP Program 3.D: Evaluate and adjust impact fees. August 1, 2023 December 31, 2024 IN-PROGRESS Program 1.H: Facilitate housing on City-owned sites. Release RFP December 31, 2023 Program 6.C: Target housing development in highest
resource areas. Initial Outreach September 31, 2023
Program 6.D: Promote Housing Choice (Section 8) rental
assistance program. September 31, 2023
Program 2.A: Continue to implement and enhance
inclusionary housing requirements. December 31, 2023 IN-PROGRESS Program 2.B: Establish an affordable housing in-lieu fee and commercial linkage fee. Housing in-lieu fee. December 31, 2023 IN-PROGRESS Program 2.F: Water and Sewer Service Providers. December 31, 2023 Program 3.B: Modify building height in mixed-use zoning districts. Downtown Districts December 31, 2023 IN-PROGRESS Program 3.E: Ensure that the density bonus ordinance
remains consistent with State law. December 31, 2023 ONGOING Program 3.H: Amend design review process and
requirements. Code Amendments December 31, 2023 COMPLETED 312
Agenda Item # 15.

Program 3.K: Standardize multimodal transportation
requirements.

Bicycle Storage and
Charging Regulations December 31, 2023 COMPLETED
Program 3.K: Standardize multimodal transportation
requirements.

Remove CSC Review of
Housing Developments December 31, 2023 COMPLETED
Program 4.C: Allow Low Barrier Navigation Centers
consistent with AB 101. December 31, 2023 IN-PROGRESS
Program 4.D: Allow transitional and supportive housing
consistent with State law. December 31, 2023 IN-PROGRESS Program 4.E: Allow employee/farmworker housing
consistent with State law. December 31, 2023 IN-PROGRESS Program 4.F: Reasonably accommodate disabled persons’
housing needs. December 31, 2023 IN-PROGRESS
Program 6.B: Maintain and expand an inventory of
affordable housing funding sources. Prepare Inventory. December 31, 2023 Program 6.E: Prepare and distribute anti-displacement
information. December 31, 2023
Program 1.A: Rezone for RHNA shortfall. January 31, 2024 Program 1.G: Rezone housing sites from previous Housing Elements. January 31, 2024
Program 3.G: Amend Conditional Use Permits findings
applicable to housing developments. March 31, 2024 IN-PROGRESS Program 3.I: Allow residential care facilities consistent with State law. March 31, 2024
Program 3.J: Explicitly allow manufactured homes consistent with State law. March 31, 2024
Program 3.F: Reduce Conditional Use Permit requirement for residential mixed-use and
multi-family. September 31, 2024 IN-PROGRESS
Program 1.B: Facilitate higher density housing in the
Commercial Thoroughfare (CT) District. December 31, 2024 Program 1.C: Allow housing in the Office Administrative (OA) District. December 31, 2024
Program 1.E: Update the Loyola Corners Specific Plan. December 31, 2024 313
Agenda Item # 15.

Program 2.D: Encourage and streamline Accessory Dwelling Units (ADUs).

Adopt-Permit Ready ADU
Plans December 31, 2024
Program 3.A: Prepare a Downtown parking plan and update citywide parking requirements. December 31, 2024 UNDER REVIEW Program 3.B: Modify building height in mixed-use zoning districts.

Commercial
Neighborhood (CN)
District December 31, 2024 IN-PROGRESS
Program 3.C: Remove floor-to-area ratio (FAR) restriction at Rancho Shopping Center and
Woodland Plaza. December 31, 2024 IN-PROGRESS
Program 3.M: Modify parking requirements for emergency
shelters consistent with State
law. December 31, 2024
Program 2.B: Establish an affordable housing in-lieu fee and commercial linkage fee. Commercial linkage fee. December 31, 2025 Program 1.D: Allow housing on certain Public and
Community Facilities District sites and
facilitate housing on religious institution properties. December 31, 2025 Program 1.F: Rezone Village Court parcel. December 31, 2025 Program 4.H: Provide additional density bonuses and
incentives for housing that accommodates special needs
groups. December 31, 2025
Program 4.I: Allow senior housing with extended care
facilities in multi-family and mixed-use zoning districts. December 31, 2025 Program 1.I: Incentivize Downtown lot consolidation. July 31, 2026 Program 4.G: Assist seniors to maintain and rehabilitate their homes. July 31, 2026
Program 6.C: Target housing development in highest
resource areas. Follow-up Outreach September 31, 2026
Program 1.H: Facilitate housing on City-owned sites. Entitlement Review December 31, 2026 Program 3.N: Modify standards in the R3 zoning districts. December 31, 2026 314
Agenda Item # 15.

Program 4.J: Facilitate alternate modes of transportation for residents.

Capital Improvement
Project for above head
pedestrian crossing
signals on San Antonio
Road near Downtown Los
Altos December 31, 2027
Program 5.F: Incentivize the creation of play areas for multifamily housing projects. December 31, 2027 Program 1.K: Participate in regional housing needs planning efforts. Ongoing
Program 1.L: General Plan amendments. Ongoing
Program 1.M: SB 9 implementation. Ongoing
Program 1.N: Facilitate and monitor pipeline housing
projects. Ongoing
Program 2.C: Assist in securing funding for affordable
housing projects. Ongoing
Program 2.D: Encourage and streamline Accessory Dwelling Units (ADUs). Ongoing
Program 2.E: Conduct annual ADU rental income surveys. Annual Survey Annually Program 4.A: Support efforts to fund homeless services. Ongoing Program 4.B: Continue to participate in local and regional forums for homelessness,
supportive, and transitional housing. Ongoing
Program 5.A: Monitor condominium conversions. Ongoing
Program 5.B: Continue to administer the City’s affordable housing programs. Ongoing
Program 5.C: Restrict commercial uses from displacing
residential neighborhoods. Ongoing
Program 5.D: Implement voluntary code inspection program. Ongoing Program 5.E: Help secure funding for housing rehabilitation and assistance programs. Ongoing
315
Agenda Item # 15.

Program 6.A: Assist residents with housing discrimination and landlord-tenant
complaints. Ongoing
Program 6.B: Maintain and expand an inventory of
affordable housing funding sources.

Inform, Evaluate
Apply/Submit Ongoing
Program 6.F: Affirmatively market physically accessible units. Ongoing Program 7.A: Promote energy and water conservation and
greenhouse gas reduction
through education and awareness campaigns. Ongoing
Program 7.B: Monitor and implement thresholds and
statutory requirements of climate change legislation. Ongoing 316
Agenda Item # 15.

AGENDA REPORT SUMMARY

Meeting Date: August 22, 2023
Subject: Status of the Sixth Cycle Housing Element 2023-2031, and report on June 30, 2023 findings letter from the Department of Housing and Community Development (HCD) post 60-day review.

Prepared by: Nick Zornes, Development Services Director Approved by: Gabe Engeland, City Manager
Attachment(s):

1. June 30, 2023, Findings Letter from HCD regarding City of Los Altos 6th Cycle Housing Element.

2. HCD Email Correspondence

3. Housing Element – Completed Revisions

4. League of Women Voters – Letter of Support – August 12, 2023

5. Los Altos Residents – Letter of Support – August 12, 2023 Environmental Review:

The action before the City Council is statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15262, Feasibility and Planning Studies. The direction is not a final action or approval in regard to the Housing Element Update and does not have a legally binding effect on any possible future discretionary action.

Background:

On January 24, 2023, the Los Altos City Council adopted the City’s 6th Cycle Housing Element 2023-2031. Once a Housing Element is adopted it must be transmitted to the Department of Housing and Community Development (HCD) for final concurrence.

On January 30, 2023, the adopted Housing Element was sent to the Department of Housing and Community Development (HCD) which began the 60-day review period.

On March 30, 2023, the City of Los Altos received written correspondence from the Department of Housing and Community (HCD) that the adopted Housing Element was not approved and requires “additional revisions necessary to substantially comply with State Housing Element Law”.
317
Agenda Item # 16.

Subject: Status of the Sixth Cycle Housing Element 2023-2031, and report on June 30, 2023 findings letter from the Department of Housing and Community Development (HCD) post 60-day review.

August 22, 2023 Page 2
On April 5, 2023, the City of Los Altos Development Services Director, and the Housing Element Team from Lisa Wise Consulting (LWC) met with the Department of Housing and Community Development (HCD) reviewers to discuss the status of the City’s Housing Element, and the findings letter received.

On May 2, 2023, the City of Los Altos resubmitted the adopted Housing Element with revisions to the Department of Housing and Community Development (HCD) which began a 60-day review period.

On June 30, 2023, the City of Los Altos received written correspondence from the Department of Housing and Community (HCD) that the adopted Housing Element was not approved and requires “additional revisions necessary to substantially comply with State Housing Element Law”.

On July 6, 2023, the City of Los Altos Development Services Director, and the Housing Element Team from Lisa Wise Consulting (LWC) met with the Department of Housing and Community Development (HCD) reviewers to discuss the status of the City’s Housing Element, and the findings letter received.

On August 2, 2023, the City of Los Altos Development Services Director transmitted revisions to the Department of Housing and Community Development (HCD) reviewers for informal review of the requested modifications.

On August 8, 2023, the City of Los Altos Development Services Director, and the Housing Element Team from Lisa Wise Consulting (LWC) met with the Department of Housing and Community Development (HCD) reviewers to discussion via teleconference the status of the revisions and if they were acceptable.

On August 10, 2023, the City of Los Altos Development Services Director received email correspondence confirming approval of the revisions provided on August 2, 2023. (Attachment 2) On August 10, 2023, the City of Los Altos published the revised Housing Element to the city’s dedicate project website thus beginning the required seven (7) calendar day public comment period.

Discussion:

The City of Los Altos adopted its 6th Cycle Housing Element 2023-2031 before the statutory due date of January 31, 2023. Post adoption the City transmitted the Housing Element Update to the California Department of Housing and Community Development (HCD) for its second review 318
Agenda Item # 16.

Subject: Status of the Sixth Cycle Housing Element 2023-2031, and report on June 30, 2023 findings letter from the Department of Housing and Community Development (HCD) post 60-day review.

August 22, 2023 Page 3
which was 60 calendar days from date of receipt. On March 30, 2023, the City received a formal findings letter rejecting the adopted housing thus necessitating revisions to be made to the Housing Element. Revisions were made to the adopted Housing Element consistent with the comments made by the Department of Housing and Community Development (HCD) reviewers and resubmitted for review on May 2, 2023.

Again, on June 30, 2023, the City received a findings letter rejecting the adopted housing element with revisions and it was requested by HCD reviewers to make additional revisions that had not been previously requested. Since that time the City of Los Altos Development Services Director has met with HCD reviewers twice to obtain firm direction and understanding regarding the necessary changes to obtain housing element certification, and confirmation that those changes are acceptable. The city is in receipt of email correspondence with the dedicated HCD reviewer confirming that the revisions provided are acceptable.

Analysis:

The HCD Findings Letter dated June 30, 2023, provided comments that were organized under the following topics: Suitability of Nonvacant Sites, and Affirmatively Further Fair Housing. A summary of HCD’s comments and discussion are provided below.

HCD Comment #1:

Code, § 65583, subd. (a)(3).)
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. (Gov. Code, § 65583, subd. (c)(1).)
Suitability of Nonvacant Sites: While the revised element relates some trends (i.e., improvement to land value and building age) to the sites inventory, the element should be revised, as follows:
319
Agenda Item # 16.

Subject: Status of the Sixth Cycle Housing Element 2023-2031, and report on June 30, 2023 findings letter from the Department of Housing and Community Development (HCD) post 60-day review.

August 22, 2023 Page 4
 Indicators of Redevelopment Potential: Currently, the element utilizes two indicators of redevelopment potential: improvement to land value ratio and age of building structure. However, the element should at least utilize an additional indicator to demonstrate the potential for redevelopment. Examples include existing versus allowable floor area, lack of improvements or structural condition, significant vacancy and frequent turnover of uses. Further, trends and assumptions utilized do not appear to match, including values in the sites inventory. For example, generally, trends for improvement to land value ratio are under a ratio of

0.6, yet a ratio of 1.0 is used and several properties appear to exceed a ratio of 1.0.

The element should either explain these differences or remove sites, as appropriate.

Finally, this analysis should apply to all sites being utilized toward the regional housing needs allocation (RHNA), including the RHNA for moderate and above moderate-income households.
 Expressed Interest in Redevelopment: The element indicates several properties have expressed interest in residential redevelopment from property owners or potential developers. To better demonstrate the potential for redevelopment and the magnitude of interest, the element could denote the properties with expressed interest in redevelopment.
 Extent Existing Uses Impede Additional Development: The element must analyze the extent that existing uses may impede additional residential development. For example, the element includes sites identified with a general description of existing uses but could further clarify the potential for redevelopment such as significant underutilization, current market demand for the existing use, absence of existing leases, contracts or conditions that would perpetuate the existing use and expressed interest in redevelopment.

Staff’s Response:

At the request of HCD staff worked diligently to provide a third indicator to further support the sites included in the site inventory. The third indicator was based upon review of all 150+ sites building permit history. The City of Los Altos electronic permit history is available dating back to 1994. From receipt of the June 30, 2023, findings letter, staff analyzed all issued permits between 1994 and 2023 to confirm the suitability of each site. The specific permit history was provided for all sites and is included in the revisions submitted to the Department of Housing and Community Development (HCD).

These revisions were found to be acceptable by HCD reviewers. 320
Agenda Item # 16.

Subject: Status of the Sixth Cycle Housing Element 2023-2031, and report on June 30, 2023 findings letter from the Department of Housing and Community Development (HCD) post 60-day review.

August 22, 2023 Page 5
HCD Comment #2:

The second and last comment provided was regarding a request for a new program “Housing Mobility”. This program was initially developed by the City of Diamond Bar, CA and has been requested of several jurisdictions since it was proposed to HCD reviewers. The new program is largely a melting pot of multiple programs all coming together to create the multi-prong approach of creating “Housing Mobility”. HCD reviewers provided the Development Services Director with a sample program created by another jurisdiction for our reference in the development of our own.

While the element includes some programs to promote housing mobility, these actions are largely limited to the RHNA and the element should consider additional actions that are significant and meaningful. Examples include creating more housing choices and affordability in single-family neighborhoods beyond complying with law (e.g., SB 9, accessory dwelling units), targeting funding, homesharing, more than one junior accessory dwelling unit per single family structure, enhancing capacity, affordability and housing choices on religious institutional sites beyond the RHNA and other alternative land use strategies. HCD will send sample programs under separate cover.

Staff Response:

Program 6.G Housing Mobility was created in line with the requested revisions identified in HCD’s comment #2. The new program will bring together multiple components of existing programs in the adopted housing element while also strengthening the City’s commitment to affirmatively furthering fair housing. Most significantly, the City of Los Altos has committed to allowing two (2) Junior Accessory Dwelling Units (JADU) on single family property and will allow housing on all religious institutional sites throughout the city. The additional allowance of a 321
Agenda Item # 16.

Subject: Status of the Sixth Cycle Housing Element 2023-2031, and report on June 30, 2023 findings letter from the Department of Housing and Community Development (HCD) post 60-day review.

August 22, 2023 Page 6
second JADU will help to create greater flexibility for the creation of additional housing units, while the allowance of housing on all religious sites in the city is in line with the provisions of SB4.

These revisions were found to be acceptable by HCD reviewers.

Next Steps:

City Council discuss the HCD Findings Letter and obtain any information from the Development Services Director on next steps regarding the review of the revised Housing Element. 322
Agenda Item # 16.

STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
June 30, 2023
Nick Zornes. Director
Development Services Department
City of Los Altos
1 North San Antonio Road
Los Altos, California, 94022-3087
Dear Nick Zornes:

RE: City of Los Altos’ 6th Cycle (2023-2031) Adopted Housing Element Thank you for submitting the City of Los Altos’ (City) housing element that was adopted January 24, 2023 and received for review on May 2, 2023. Pursuant to Government Code section 65585, subdivision (h), the California Department of Housing and Community Development (HCD) is reporting the results of its review.

The adopted housing element addresses most statutory requirements described in HCD’s March 30, 2023 review; however, additional revisions are necessary to substantially comply with State Housing Element Law (Gov. Code, § 65580 et seq), as follows

1. 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, subd. (a)(3).) 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…. (Gov. Code, § 65583, subd. (c)(1).)
Suitability of Nonvacant Sites: While the revised element relates some trends (i.e., improvement to land value and building age) to the sites inventory, the element should be revised, as follows:
• Indicators of Redevelopment Potential: Currently, the element utilizes two indicators of redevelopment potential: improvement to land value ratio and 323
Agenda Item # 16.

Nick Zornes. Director

Page 2 ends

age of building structure. However, the element should at least utilize an additional indicator to demonstrate the potential for redevelopment.

Examples include existing versus allowable floor area, lack of improvements or structural condition, significant vacancy and frequent turnover of uses. Further, trends and assumptions utilized do not appear to match, including values in the sites inventory. For example, generally, trends for improvement to land value ratio are under a ratio of 0.6, yet a ratio of 1.0 is used and several properties appear to exceed a ratio of 1.0.

The element should either explain these differences or remove sites, as appropriate. Finally, this analysis should apply to all sites being utilized toward the regional housing needs allocation (RHNA), including the RHNA for moderate and above moderate-income households.
• Expressed Interest in Redevelopment: The element indicates several properties have expressed interest in residential redevelopment from property owners or potential developers. To better demonstrate the potential for redevelopment and the magnitude of interest, the element could denote the properties with expressed interest in redevelopment. • Extent Existing Uses Impede Additional Development: The element must analyze the extent that existing uses may impede additional residential development. For example, the element includes sites identified with a general description of existing uses but could further clarify the potential for redevelopment such as significant underutilization, current market demand for the existing use, absence of existing leases, contracts or conditions that would perpetuate the existing use and expressed interest in redevelopment.

In addition, for your information, the element relies on nonvacant sites to accommodate 50 percent or more of the housing needs for lower-income households, which triggers requirements to make findings based on substantial evidence that the existing use is not an impediment and will likely discontinue in the planning period. While the resolution of adoption includes the appropriate findings, any changes to the analysis should be reflected in future re-adoption of the element.

Electronic Sites Inventory: For your information, pursuant to Government Code section 65583.3, the City must submit an electronic sites inventory with its adopted housing element. The City must utilize standards, forms, and definitions adopted by HCD. Please see HCD’s housing element webpage at https://www.hcd.ca.gov/planning-and-communitydevelopment/housing-elements for a copy of the form and instructions. The City can reach out to HCD at [email protected] for technical assistance.

Programs: As noted above, the element does not include a complete site analysis; therefore, the adequacy of sites and zoning were not established.

Based on the results of a complete sites inventory and analysis, the City may 324
Agenda Item # 16.

Nick Zornes. Director

Page 3 ends

need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types.

2. 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, subd. (c)(5).) The City is entirely the highest resource category in access to opportunity, wholly a concentrated area of affluence and consists of households with the highest median income category. These conditions and circumstances warrant significant and robust actions (not limited to the RHNA) to promote housing mobility and increasing housing choices and affordability throughout and beyond the City, including in lower-density neighborhoods. While the element includes some programs to promote housing mobility, these actions are largely limited to the RHNA and the element should consider additional actions that are significant and meaningful. Examples include creating more housing choices and affordability in single-family neighborhoods beyond complying with law (e.g., SB 9, accessory dwelling units), targeting funding, homesharing, more than one junior accessory dwelling unit per single family structure, enhancing capacity, affordability and housing choices on religious institutional sites beyond the RHNA and other alternative land use strategies. HCD will send sample programs under separate cover.

The element will meet the statutory requirements of State Housing Element Law once it has been revised and re-adopted, if necessary, to comply with the above requirements.

For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), as the City did not adopt a compliant housing element within 120 days of the statutory deadline (January 31, 2023), Programs to make prior identified sites available and accommodate a shortfall of adequate sites to accommodate the RHNA must be completed no later than one year from the statutory deadline. Please be aware, if the City does not adopt a substantially compliant housing element within one year from the statutory deadline, the element cannot be found in substantial compliance until all necessary rezones are completed.

Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. During the housing element revision process, the City must continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available while considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD.
325
Agenda Item # 16.

Nick Zornes. Director

Page 4 ends

Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City will meet housing element requirements for these and other funding sources.

HCD appreciates the dedication and cooperation from yourself and the rest of the housing element team. We are committed to assisting the City in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Anthony Errichetto, of our staff, at [email protected].

Sincerely,
Paul McDougall
Senior Program Manager
326
Agenda Item # 16.

From: Errichetto, Anthony@HCD
To: Nick Zornes; Jennifer Murillo
Cc: McDougall, Paul@HCD
Subject: RE: Los Altos Revisions
Date: Thursday, August 10, 2023 11:34:37 AM
Attachments: image002.png
image003.png
image004.png
Good morning Nick and Jennifer,
Paul has given his approval to your revisions – you should be all good to go out for a final round of public comments.

Thank you for all your hard work thus far – we share in your eagerness to get Los Altos over the finish line soon!
Best regards,
Anthony Errichetto (he/him)
Housing Policy Analyst
Division of Housing Policy Development
Planning Grants & Incentives Branch
Land Use & Local Government Relations Unit
Department of Housing & Community Development
2020 W. El Camino Avenue, Suite 550 | Sacramento, CA 95833 HCD Mission: Promote safe, affordable homes and vibrant, inclusive, sustainable communities for all Californians.

HCD Vision: Every California resident can live, work, and play in healthy communities of opportunity.

From: Nick Zornes <[email protected]>
Sent: Wednesday, August 9, 2023 3:02 PM
To: Errichetto, Anthony@HCD <[email protected]> Cc: Jennifer Murillo <[email protected]>
Subject: FW: Los Altos Revisions
Hi Anthony,
We are eager to hear the initial feedback from you after confirmation with Paul. Once we hear back we will proceed with posting for the required 7-days.

Thank you
327
Agenda Item # 16.

From: Nick Zornes
Sent: Tuesday, August 8, 2023 9:10 AM
To: Errichetto, Anthony <[email protected]> Cc: McDougall, Paul@HCD <[email protected]>; Jennifer Murillo <[email protected]>
Subject: Los Altos Revisions
Anthony,
Thank you for the quick call and initial feedback. We understand that Paul was unable to get to the revisions prior to the call this morning, but that you will discuss this with him today and provide us with word if the revisions are acceptable to proceed with.

We look forward to hearing back from you by the end of day.

Thank you,
328
Agenda Item # 16.
2023-2031 Housing Element City of Los Altos | 16
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 - 6101 12334 3839 420451 587625 Remaining RHNA See Very Low 479384 68157 127126 375344 1,0491,011 Site Inventory1 See Very
Low/Low 557 168169 323325 1,0481,051
Surplus/(Shortfall) 1016 4143 (5219) (1)40
Rezone Sites (Net New) 408 128 64 600
Surplus/(Shortfall) with
Rezone Sites 418424 169171 1245 599640

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.

Los Altos 2023-2031 Housing Element August 2023 Revisions 329
Agenda Item # 16.
2023-2031 Housing Element City of Los Altos | 18
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 19 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 19 above moderate-income housing units; proposed rezoning would accommodate an assumed capacity of 68 64 above-moderate income housing units Geographic Targeting: Create additional opportunities for housing capacity throughout the city, which is identified as high and highest resource by TCAC opportunity maps.

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, and the increased setback standards when across the street from or abutting a residential zoning district will be removed.

Responsible Body: Development Services Department, Planning Commission, City Council
Funding Source: General Fund
Time Frame: December 2024
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Agenda Item # 16.
2023-2031 Housing Element City of Los Altos | 48
reached and will be determined with local organizations and groups to be most effective.

The goal is to educate at least 40 households or prevent at least 40 households from displacement.

Geographic Targeting: At-risk households citywide, including renter and senior households.

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.

Geographic Targeting: All future physically accessible units in below market rate housing developments citywide.

Program 6.G: Housing Mobility
Housing mobility strategies consist of removing barriers to housing in areas of opportunity and strategically enhancing access (Los Altos is entirely highest resource in terms of access to opportunity and a concentrated area of affluence). To improve housing mobility and promote more housing choices and affordability throughout Los Altos, including in lower-density neighborhoods, the City will employ a suite of actions to expand housing opportunities affordable to extremely low, very low, low, and moderate income households. Actions and strategies include:
 SB 9 – Monitor the City’s SB 9 standards and amend standards to facilitate SB 9 applications (e.g., duplexes in single-family zones) if the City is not on track to meet its SB 9 application goal during the planning period. See Program 1.M.  Rezoning – Modify zoning to allow residential or increased residential intensity and/or density of residential throughout Los Altos. This includes zoning amendments along higher intensity corridors (e.g., El Camino Real, San Antonio Road, and Foothill Expressway) and for sites within lower-density neighborhoods (e.g., Loyola Corners Specific Plan, OAzoned sites on Altos Oaks Drive, and church sites on Magdalena Avenue). See Programs

1.B, 1.C, 1. D, 1.E, and 1.F.

Los Altos 2023-2031 Housing Element August 2023 Revisions 331
Agenda Item # 16.
49 | City of Los Altos 2023-2031 Housing Element
 Housing on City Sites – Enter into a public-private partnership to develop housing, targeting low-income households, on City-owned Downtown Parking Plazas. See Program 1.H.
 Enhanced Inclusionary Housing – Assess and amend the City’s inclusionary housing requirements to better produce low-income units and units for special needs groups throughout Los Altos. See Program 2.A.
 Accessory Dwelling Units (ADUs) – Encourage and streamline ADUs in single-family neighborhoods by preparing standardized ADU plans with a variety of unit sizes and by affirmatively marketing and outreach to increase awareness and the diversity of individuals residing in Los Altos. See Program 2.D.
 Junior ADUs – Develop and adopt objective standards to allow more than one (at minimum two) Junior ADU per structure by July 2025. The objective is to achieve at least 10 JADUs in lower-density neighborhoods by January 2031.
 Religious Institutional Sites – Allow housing on all religious institutional sites within the City (i.e., all PCF-zoned religious institutional properties in addition to the two sites identified in the housing sites inventory (Program 1.D)). Conduct outreach to owners and operators of religious institutions to raise awareness and encourage housing proposals.

Permit 10 housing units on a religious institution/faith-based site(s) during the 2023-2031 planning period. If no application for housing on a religious institution/faith-based site is received by December 2025, the City will expand outreach efforts to be conducted annually. This may include direct mailings to faith-based sites highlighting successful affordable housing units on other faith-based sites, as well as available City resources and programs to support such projects (e.g., Program 2.C – Assist in securing funding for affordable housing projects).
 Homesharing – Research and pursue a homesharing program, including coordination with non-profits and other organizations to assist with matching tenants with existing homeowners. The City will publicize and take other actions as necessary (e.g., facilitate presentations at the Los Altos Senior Center, etc.) at least annually with the goal of five opportunities per year.

Responsible Body: Development Services Department
Funding Source: General Fund
Time Frame: Annually review overall progress and effectiveness in April and include information in annual report to HCD. If the City is not on track to meet its 150 affordable housing unit goal for the 8-year RHNA cycle by 2027 (i.e., 75 affordable units built or in process by 2027), the City will consider alternative land use strategies and make necessary amendments to zoning or other land use documents to facilitate a variety of housing choices, including but not limited to, strategies that encourage missing middle zoning (small-scale multi-unit projects), adaptive reuse, and allowing additional ADUs Los Altos 2023-2031 Housing Element August 2023 Revisions 332
Agenda Item # 16.
2023-2031 Housing Element City of Los Altos | 50
and/or JADUs, within six months, if sufficient progress toward this quantified objective is not being met.

Objective: Provide 150 housing opportunities affordable to lower income households by January 2031.

Geographic Targeting: Citywide, but especially lower-density neighborhoods.

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.

Los Altos 2023-2031 Housing Element August 2023 Revisions 333
Agenda Item # 16.

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 FAR3 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 -3 1955/1980 - - 1 9 10 425 First St. Under construction Office N/A -3 1975 - 1 2 17 20 444-450 First St. Under construction Office N/A -3 N/A - 1 3 23 27 140 Lyell Under construction Single-Family Home 0.69 -3 1951 - 1 - 4 4 330 Distel Circle Approved (approved Sept 2022) Office – vacant, no tenants N/A 0.38 1975 -68 9022 - - 90 4350 El Camino Real Approved (approved Sept
2022)
Commercial (gas
station and
convenience mart)
– fully occupied

0.26 0.17 1969 3 - 4 40 47
4848-4856 El Camino Real
Approved, building permit
ready to issue
Commercial –
vacant, no tenants 0.02 0.52 2020 -6 71 3 42 52
4898 El Camino Real
Approved, in building permit
plan check
Commercial –
vacant, no tenants 0.81 0.78 1959 -2 42 2 22 28
5150 El Camino Real
Approved, in building permit
plan check (second round of
plan check completed,
waiting for corrections)
Office – vacant,
no tenants 0.02 0.40 N/A -16 16- 12 168 196
355/365/371/373 First St.

Approved (approved June
2022; in first round of
building plan check.

Application for demolition of
existing building)
Commercial –
partially occupied

0.62/0.28/0.11/

0.97 0.21/0.41/

0.33/0.32
1991/1938/
1946/1963 3- -3 4 43 49
376 First St. Approved (approved April 2022; in plan check) Commercial (restaurant) – fully occupied 1.26 0.65 1954 - - 3 12 15 Los Altos 2023-2031 Housing Element August 2023 Revisions 334
Agenda Item # 16.

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 FAR3 Existing/ Previous Building Age* Units by Income Level1 Very Low Low Moderate Above Moderate Total Net New2 440 First St.

Approved (approved early
2022; first round of plan
check completed)
Office – vacant,
no tenants N/A -3 1980 - - - 4 4
343 Main St. Approved
Commercial
(home
improvement) –
fully occupied

0.29 0.78 1938 - - - 1 1
95 First St.

Under review (second
review completed), approval
(hearing) anticipated
summer 2023
Office – partially
occupied 0.58 0.75 1979 -3 3- - 12 15
349 First St.

Under review (applicantinitiated modifications are
being completed), approval
(hearing) anticipated
summer 2023
Office – vacant,
no tenants 0.12 0.77 1960 - -4 2- 1013 1217
14 Fourth St.

Under review/deemed
complete, hearing scheduled
for May 3, 2023
Single-Family
Home – short term
lease expires
2023

0.30 0.20 1952 - - - 4 3
996 Loraine
Under review/deemed
complete, hearing scheduled
for May 3, 2023
Commercial –
vacant, no tenants 0.54 0.34 1965 - - 2 10 12
4896 El Camino Real
Under review/first round of
review complete, anticipated
hearing is by the end of
2023
Commercial – fast
food restaurant,
fully occupied

0.02 0.09 1968 2 3 28 33
Subtotal Gross 6101 12334 3839 423454 N/A
Subtotal Net New 6101 12334 3839 420451 587625
* 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.

Los Altos 2023-2031 Housing Element August 2023 Revisions 335
Agenda Item # 16.

Sites Inventory and Methodology City of Los Altos | B-7 Table B-3: Entitled and Proposed Developments
Address Status Vacant/ Existing or Previous Use Existing/ Previous ILV* Existing/ Previous FAR3 Existing/ Previous Building Age* Units by Income Level1 Very Low Low Moderate Above Moderate Total Net New2 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.3 Existing/previous use FAR data is unavailable for certain projects. In some cases existing/prior uses have been demolished for new construction of housing.Source: City of Los Altos, Santa Clara County Assessor Los Altos 2023-2031 Housing Element August 2023 Revisions 336
Agenda Item # 16.

B-10 | City of Los Altos Sites Inventory and Methodology 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
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)
- 4896 El Camino Real (39 units/acre; mixed
income)
74 68 units/acre
(194179% of maximum
allowed density)
80% of maximum
allowed density (30.4
units/acre) (4145% of
average development
trends)3
CD/R3
- 349 First St. (75 106 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)
- 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)*
62 65 units/acre
70% of average
development trends
(43.445.5 units/acre)
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 59 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 Los Altos 2023-2031 Housing Element August 2023 Revisions 337
Agenda Item # 16.

Sites Inventory and Methodology City of Los Altos | B-11 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 68 dwelling units per acre, or 194 179 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 59 percent of average development trends in the CT District.

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).
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.

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Agenda Item # 16.

Sites Inventory and Methodology City of Los Altos | B-15 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 includes 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-34, even several fully-occupied commercial properties and properties with other low-intensity uses are 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. This is further supported by recent market data. According to a report by real estate firm Cushman and Wakefield, the Silicon Valley office vacancy rate increased significantly in the second quarter of 2023, finishing at a historic high of 21.6 percent. This decreasing demand for office space supports the conversion of office to housing. Moreover, according to Cushman and Wakefield, in the second quarter of 2023, average asking retail rents in Silicon Valley are down 3.9 percent from one year ago, with the retail vacancy rate hovering at around five percent. Decreasing retail rents demonstrate less demand for retail and serve as additional evidence that existing retail and commercial uses are not impediments to the redevelopment of housing.

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 4 The entitled and proposed projects in Table B-3 generally have Improvement-to-Land Values of approximately 1.0 or less and a building age older than 1980.

Los Altos 2023-2031 Housing Element August 2023 Revisions 339
Agenda Item # 16.

B-16 | City of Los Altos Sites Inventory and Methodology 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.5 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.6 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)  Restaurants, including fast food restaurants
 Gas station and convenience mart
 Single-family homes
5 See Section B.2.4. These are the same screening criteria used for identifying the lower-income nonvacant sites in Table B-7A, who were also subject to the income categorization described in Section B.2.4 6 Woodland Plaza (APNs 31816022, 31816020, 31816019, 31816015) has Improvement-to-Land Value ratios of 0.37,

0.07, 0.46, 0.22, respectively.

Los Altos 2023-2031 Housing Element August 2023 Revisions 340
Agenda Item # 16.

Sites Inventory and Methodology City of Los Altos | B-17 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, contracts, or conditions 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 tableTable B-7A below 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-7A, owner interest in property 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 Los Altos 2023-2031 Housing Element August 2023 Revisions 341
Agenda Item # 16.

B-18 | City of Los Altos Sites Inventory and Methodology 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-7A (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 68 dwelling units per acre, approximately 194 179 percent of maximum density, further indicating strong residential demand at these and at similar parcels. This strong demand for added density in the CT District7 supports redevelopment of parcels in Table B-7A, even in cases where the Improvement-to-Land Value exceeds 1.0 or the existing building was built after 1980. Table B-11 conservatively projects realistic capacity in the CT District at 40 dwelling units per acre, consistent with the upzoning proposed as part of Program

1.B.

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-7A identifies characteristics of the nonvacant lower income housing sites, which are similar to properties proposed for or under development for housing (Table B-3) or that have property owner interest or other factors making them suitable for housing during the planning period (e.g., church site, etc.).

Table B-7B identifies characteristics of the nonvacant moderate and above moderate-income housing sites, including sites identified for rezoning. These sites are also similar to properties proposed for or under development for housing (Table B-3) or have property owner interest or other factors making them suitable for housing during the planning period (e.g., restaurants, occupied, partially occupied, and vacant commercial or office buildings, etc.).

For both nonvacant lower income sites and nonvacant moderate and above moderate-income sites, 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, based on factors such as:
 Building age
 Improvement-to-land-value (ILV) ratio
 Property or structural condition
7 As identified in Table B-3, there are currently four housing projects on El Camino Real in the CT District in the City’s development pipeline.

Los Altos 2023-2031 Housing Element August 2023 Revisions 342
Agenda Item # 16.

Sites Inventory and Methodology City of Los Altos | B-19  Existing floor-to-area ratio (FAR)8
 Lack of significant improvements as evidenced by recent building permit data (over approximately the last 30 years)
 Significant or partial vacancy
 Frequent turnover based on City business license records For example, housing projects identified in Table B-3 at 343 Main Street (zoned CRS) and 4898 El Camino Real (zoned CT) are replacing existing commercial buildings with a FAR of 0.78, while housing projects at 349 First Street and 95 First Street (both zoned CD/R3) are both replacing existing offices with FARs of 0.77 and 0.75, respectively. In addition to meeting the building age and ILV ratio criteria identified in Section B.2.4 above, many of the parcels in Table B-7B below also have existing FARs similar or lower to those identified above, indicating realistic development potential. Furthermore, the building permit records of the nonvacant parcels identified in Tables B-7A and B-7B below generally demonstrate a lack of significant structural improvements to existing buildings over the last 30 years; this serves as an additional indicator that the nonvacant sites have not received significant investment that would preclude or impede their redevelopment as housing during the planning period.
8 Existing FAR was considered rather than a ratio of existing to allowable FAR since the Los Altos Municipal Code does not set forth maximum FAR for the identified sites, or the existing FAR standard will be removed (i.e., Program 3.C).

Los Altos 2023-2031 Housing Element August 2023 Revisions 343
Agenda Item # 16.

Sites Inventory and Methodology City of Los Altos | B-20 Table B-7
A: Existing Uses on Nonvacant Lower Income Sites and Potential Sites for Rezoning for Lower Income Address APN Zone
Parcel
Size
(acres)
Existing Use
Improvement to
Land
Value
Year
Built
Existing
FAR
Additional Indicators of
Redevelopment Potential
1188 LOS
ALTOS AVE 16710094* CT 0.51 Commercial and surface parking 1.15 1956 0.29 No record of structural improvements in 30 years. Low FAR.

EL CAMINO
REAL 17003084* CT 0.54 Surface parking lot 0 0 0 Surface parking lot. 4844 EL
CAMINO
REAL 17002023* CT 0.55 Retail store (candy shop) and surface parking lot 1.57 0 0.08 Low FAR; primarily surface parking.

Owner interest in property redevelopment
for housing. No record of structural
improvements in 30 years. Low FAR.
4500 EL
CAMINO
REAL
16712045* CT 0.56
Multi-tenant (personal services -
massage, hair studio, fencing club)
and surface parking lot

1.73 1976 0.28
Low FAR; high turnover evidenced by
business license history. Owner interest
in property redevelopment for housing.

No record of structural improvements in
30 years. Similar to other multi-tenant
commercial uses that are redeveloping
into housing in Table B-3.
5000 EL
CAMINO
REAL 17004050* CT 0.62 Carl’s Jr. and surface parking lot1 0.11 1974 0.14 Owner interest in property redevelopment
for housing. No record of structural
improvements in 30 years. Site is similar
to existing fast food pipeline site at 4896
El Camino Real in Table B-3. Low FAR.
4906 EL
CAMINO
REAL
17003077* CT 0.69 Multi-tenant (medical, dental, and other offices) and surface parking lot1 1.16 1984 0.39 Owner interest in property redevelopment
for housing. No record of structural
improvements in 30 years. Low FAR.

Similar to other multi-tenant commercial
uses that are redeveloping into housing in
Table B-3.
2057 GRANT
RD 31816020 CN 0.71
Multi-tenant (commercial – cleaning
services)
and surface parking lot

0.07 1959 0.24
Low FAR. No structural improvements in
last 30 years. No record of structural
improvements in 30 years. No record of
structural improvements in 30 years.

Similar to other multi-tenant commercial
Los Altos 2023-2031 Housing Element August 2023 Revisions 344
Agenda Item # 16.

Sites Inventory and Methodology City of Los Altos | B-21 Table B-7
A: Existing Uses on Nonvacant Lower Income Sites and Potential Sites for Rezoning for Lower Income Address APN Zone
Parcel
Size
(acres)
Existing Use
Improvement to
Land
Value
Year
Built
Existing
FAR
Additional Indicators of
Redevelopment Potential
uses that are redeveloping into housing in
Table B-3.
4970 EL
CAMINO
REAL
17064120* CT 0.78 Multi-tenant offices and surface parking lot1 1.15 1956 0.67 Owner interest in property redevelopment
for housing. No record of structural
improvements in 30 years. Similar to
other multi-tenant commercial uses that
are redeveloping into housing in Table B3. Low FAR.
2111 GRANT
RD 31816019 CN 0.88
Portion of Woodland Plaza
Grocery store and surface parking lot

0.46 0 0.25
Low FAR; per Program 3.C, the FAR
constraint for this site will be removed. No
record of structural improvements in 30
years.
4988 EL
CAMINO
REAL
17064119* CT 0.94
Partially occupied multi-tenant (tax
and accounting services, other
general offices) and surface parking
lot1

0.13 1981 0.79
Owner interest in property redevelopment
for housing. No record of structural
improvements in 30 years. Similar to
other multi-tenant commercial uses that
are redeveloping into housing in Table B3.
4926 EL
CAMINO
REAL
17003073* CT 1.05 Restaurant and surface parking lot 0.05 1968 0.21 Low FAR; high turnover evidenced by
business license history. No record of
structural improvements in 30 years. Site
is similar to existing restaurant pipeline
site 376 First St. in Table B-3.
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
0 1964 0.33
Low FAR; high turnover evidenced by
business license history. No record of
structural improvements in 30 years.

Similar to other multi-tenant commercial
uses that are redeveloping into housing in
Table B-3.
22350

HOMESTEAD
RD
32601052 CN 2.08
Portion of Foothill Crossing
Partially occupied multi-tenant
commercial and surface parking lot1

0.27 1969 0.27
Owner interest in property redevelopment
for housing – conceptual plan for
redevelopment provided. No record of
structural improvements in 30 years. Low
FAR. Similar to other multi-tenant
Los Altos 2023-2031 Housing Element August 2023 Revisions 345
Agenda Item # 16.

B-22 | City of Los Altos Sites Inventory and Methodology Table B-7
A: Existing Uses on Nonvacant Lower Income Sites and Potential Sites for Rezoning for Lower Income Address APN Zone
Parcel
Size
(acres)
Existing Use
Improvement to
Land
Value
Year
Built
Existing
FAR
Additional Indicators of
Redevelopment Potential
commercial uses that are redeveloping
into housing in Table B-3.
22310

HOMESTEAD
RD
32601053 CN 2.94
Portion of Foothill Crossing
Partially occupied multi-tenant
commercial and surface parking lot1
0,.61 1973 0.37
Owner interest in property redevelopment
for housing – conceptual plan for
redevelopment provided. No record of
structural improvements in 30 years. Low
FAR. Similar to other multi-tenant
commercial uses that are redeveloping
into housing in Table B-3.
2185 GRANT
RD 31816022 CN 3.34
Portion of Woodland Plaza
Grocery store and surface parking lot

0.37 1997 0.26
Primarily a surface parking lot with low
utilization, where available parking is in
excess of the demand. Low FAR; per
Program 3.C, the FAR constraint for this
site will be removed. Site has not
undergone significant improvements
since initial construction in 1997. Similar
to other multi-tenant commercial uses that
are redeveloping into housing in Table B3.
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

0.59 1900 0.32
Low FAR; per Program 3.C, the FAR
constraint for this site will be removed.

High turnover evidenced by business
license history. No record of structural
improvements in 30 years. Similar to
other multi-tenant commercial uses that
are redeveloping into housing in Table B3.
895

SHERWOOD
AV
17001055* OA 0.56 Multi-tenant (massage and fitness studio) and surface parking lot 0.81 1973 0.24 Low FAR; similar to other multi-tenant
commercial uses that are redeveloping
into housing in Table B-3. No record of
structural improvements in 30 years.

Similar to other multi-tenant commercial
uses that are redeveloping into housing in
Table B-3.

Los Altos 2023-2031 Housing Element August 2023 Revisions 346
Agenda Item # 16.

Sites Inventory and Methodology City of Los Altos | B-23 Table B-7A: Existing Uses on Nonvacant Lower Income Sites and Potential Sites for Rezoning for Lower Income Address APN Zone
Parcel
Size
(acres)
Existing Use
Improvement to
Land
Value
Year
Built
Existing
FAR
Additional Indicators of
Redevelopment Potential
745 DISTEL
DR 17004045* OA 0.56 Multi-tenant (architecture and financial services offices) 0 1963 0.38 Low FAR; similar to other multi-tenant
commercial uses that are redeveloping
into housing in Table B-3. No record of
structural improvements in 30 years.

Similar to other multi-tenant commercial
uses that are redeveloping into housing in
Table B-3.
289 S SAN
ANTONIO RD 17041086* OA 0.60
Multi-tenant (title company, financial
services, pool and spa) and surface
parking lot1

2.11 1977 0.63
Owner interest in property redevelopment
for housing. No record of structural
improvements in 30 years. Similar to
other multi-tenant commercial uses that
are redeveloping into housing in Table B3.
901

FREMONT
AV
18915106* CN 0.70 Bank and surface parking lot 0.53 1961 0.16 Low FAR; primarily surface parking. No
record of structural improvements in 30
years.
399 S SAN
ANTONIO RD 17040082* OA 0.76 Mortuary and surface parking lot 0 0 0.23 Low FAR; primarily surface parking. No
record of structural improvements in 30
years.
161 S SAN
ANTONIO RD 17042028* OA 0.90 Multi-tenant (real estate offices) and surface parking lot 0.71 1979 0.74 Similar to other multi-tenant office uses
that are redeveloping into housing in
Table B-3. Low FAR.
211 S SAN
ANTONIO RD 17041079* OA 0.99 Bank and surface parking lot 0.35 0 0.39 Low FAR; primarily surface parking. No
record of structural improvements in 30
years.
1000

FREMONT
AV
31801036* CN 1.22 Partially occupied multi-tenant commercial and surface parking lot1 1.22 1960 0.53 Owner interest in property redevelopment
for housing. No record of structural
improvements in 30 years. Similar to
other multi-tenant commercial uses that
are redeveloping into housing in Table B3.

Los Altos 2023-2031 Housing Element August 2023 Revisions 347
Agenda Item # 16.

B-24 | City of Los Altos Sites Inventory and Methodology Table B-7
A: Existing Uses on Nonvacant Lower Income Sites and Potential Sites for Rezoning for Lower Income Address APN Zone
Parcel
Size
(acres)
Existing Use
Improvement to
Land
Value
Year
Built
Existing
FAR
Additional Indicators of
Redevelopment Potential
851

FREMONT
AV
18914081* OA 1.85
Partially occupied multi-tenant
(medical offices) and surface parking
lot

0.75 1970 0.79
No record of structural improvements in
30 years. Similar to other multi-tenant
commercial uses that are redeveloping
into housing in Table B-3.
4546 EL
CAMINO
REAL2
16712042* R1-10 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

3.71 1964 0.35
Property owner interest in redevelopment.

No record of structural improvements in
30 years. Similar to other multi-tenant
commercial uses that are redeveloping
into housing in Table B-3. Low FAR.

Parking lot with low utilization, where
available parking is in excess of the
demand
655

MAGDALENA
AV3
33609023* PCF 6.06 Los Altos United Methodist Church, preschool, and surface parking lot 18 0 0.28 Low FAR; Considering only a portion of site as potential opportunity for housing capacity. No record of structural
improvements in 30 years.
625

MAGDALENA
AV3
33609018* PCF 6.50 Bridges Community Church and surface parking lot 12.31 0 0.18 Low FAR; Considering only a portion of site as potential opportunity for housing capacity. No record of structural
improvements in 30 years.
*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. 3 Only a portion of the parking lots of these church sites are projected to accommodate housing; the existing church use on each site is anticipated to continue.

This is reflected in the assumed realistic capacity identified in Table B-11. Source: City of Los Altos, Santa Clara County Assessor, LWC Los Altos 2023-2031 Housing Element August 2023 Revisions 348
Agenda Item # 16.

Sites Inventory and Methodology City of Los Altos | B-25 Table B-7B: Existing Uses on Nonvacant Moderate/Above Moderate-Income Sites and Potential Sites for Rezoning for Moderate/Above ModerateIncome Address APN Zone
Parcel
Size
(acres)
Existing Use
Improvement to
Land
Value
Existing
FAR
Year
Built Additional Indicators of Redevelopment Potential
392 1st St 16741007 CD/R3 0.26 Offices or commercial with surface parking 0.50 0.52 1958 Low FAR. No structural improvements in last 30 years. Similar to other multi-tenant commercial uses that are redeveloping into housing in Table B-3. 146 Main St 16738020 CRS 0.28 Los Altos Masonic building 0.92 1.50 0 No structural improvements in last 30 years. 342 1st St 16741065 CRS 0.29 Surface parking lot 0.05 - 0 Surface parking lot. 4646 El Camino
Real 17001088 CN 0.29 Offices or commercial and surface parking lot 0.47 0.30 1958 Low FAR. No structural improvements in last 30 years. Similar to other multi-tenant commercial uses that are redeveloping into housing in Table B-3. 2235 Grant Rd 31816011 CN 0.30 Offices or commercial and surface parking lot 0.10 0.50 1961 Low FAR; appears vacant. No structural improvements in last 30 years. Similar to other multi-tenant commercial uses that are redeveloping into housing in Table B-3. 169 Main St 16738008 CRS 0.30 Multiple or Strip Stores 0.86 1.57 1952 No structural improvements in last 30 years. Similar to other multi-tenant commercial uses that are
redeveloping into housing in Table B-3.
994 Acacia Av 17001047 CN 0.31 Residential or commercial with surface parking 0.17 0.13 1924 Low FAR. No structural improvements in last 30 years. 2249 Grant Rd 31816009 CN 0.31 Commercial building with surface parking 0.49 0.32 1962 Low FAR. No structural improvements in last 30 years. 5084 El Camino
Real 17004065 CT 0.31 Individual Retail Stores1 1.16 0.61 1950 Owner interest in property redevelopment for housing. Low FAR. No structural improvements in last 30 years. 2073 Grant Rd 31816015 CN 0.32 Auto Service, Garages and surface parking 0.22 0.30 1959 Low FAR. No structural improvements in last 30 years.

Parking Lot 16738038 CRS 0.34 Surface parking 0.00 - 0 Surface parking lot. 2251 Grant Rd 31816008 CN 0.44 Offices and surface parking lot 0.27 0.53 1975 Low FAR. No structural improvements in last 30 years. Similar to other multi-tenant commercial uses that are redeveloping into housing in Table B-3. 1st St Parking Lot 16739057 CRS 0.57 Surface parking lot NA - 0 City parking lot. Housing will be developed on City parking lots per Program 1.H.

Los Altos 2023-2031 Housing Element August 2023 Revisions 349
Agenda Item # 16.

B-26 | City of Los Altos Sites Inventory and Methodology Table B-7B: Existing Uses on Nonvacant Moderate/Above Moderate-Income Sites and Potential Sites for Rezoning for Moderate/Above ModerateIncome Address APN Zone
Parcel
Size
(acres)
Existing Use
Improvement to
Land
Value
Existing
FAR
Year
Built Additional Indicators of Redevelopment Potential
4th St 16738029 CRS 0.58 Surface parking lot NA - 0 City parking lot. Housing will be developed on City parking lots per Program 1.H.

State St 16738028 CRS 0.58 Surface parking lot NA - 0 City parking lot. Housing will be developed on City parking lots per Program 1.H. 2nd St 16739069 CRS 0.60 Surface parking lot NA - 0 City parking lot. Housing will be developed on City parking lots per Program 1.H. 342 1st St 16741003 CRS 1.00 Supermarket w. surface parking lot 0.52 0.51 1966 Low FAR. No structural improvements in last 30 years. Site is primarily a parking lot. 1st St 16739032 CRS 1.04 Surface parking lot NA - 0 City parking lot. Housing will be developed on City parking lots per Program 1.H. 2nd St, Plaza
North 16739007 CRS 1.18 Surface parking lot NA - 0 City parking lot. Housing will be developed on City parking lots per Program 1.H. 355 State St 16739060 CRS 0.05 Restaurants, Bars 0.46 0.95 1962 No structural improvements in last 30 years. Site is
similar to existing restaurant pipeline site 376 First St. in Table B-3.
168 Main St 16738024 CRS 0.05 Commercial and surface parking lot 0.48 0.61 1957 Low FAR. No structural improvements in last 30 years. 290 Main St 16739105 CRS 0.05 Commercial 0.76 1.01 1940 No structural improvements in last 30 years.380 Main St 16739089 CRS 0.05 Commercial and surface parking lot 0.35 0.55 1950 Low FAR. No structural improvements in last 30 years334 Main St 16739084 CRS 0.05 Commercial 1.00 1.04 1959 No structural improvements in last 30 years346 Main St 16739085 CRS 0.05 Commercial and surface parking lot 0.39 0.40 1910 Low FAR. No structural improvements in last 30 years 991 N San
Antonio Rd 17001029 CN 0.05 Commercial and surface parking lot 0.41 0.67 1942 Low FAR. No structural improvements in last 30 years 252 Main St 16739075 CRS 0.06 Commercial and surface parking lot 0.17 0.89 1951 No structural improvements in last 30 years 1005 Acacia Av 17001045 CN 0.06 Surface parking lot 0.00 - 1940 Surface parking lot.

Los Altos 2023-2031 Housing Element August 2023 Revisions 350
Agenda Item # 16.

Sites Inventory and Methodology City of Los Altos | B-27 Table B-7B: Existing Uses on Nonvacant Moderate/Above Moderate-Income Sites and Potential Sites for Rezoning for Moderate/Above ModerateIncome Address APN Zone
Parcel
Size
(acres)
Existing Use
Improvement to
Land
Value
Existing
FAR
Year
Built Additional Indicators of Redevelopment Potential
398 Main St 16739091 CRS 0.06 Commercial 0.51 1.64 1910 No structural improvements in last 30 years 242 State St 16739011 CRS 0.06 Restaurants, Bars 0.67 1.01 1960 No structural improvements in last 30 years. Site is
similar to existing restaurant pipeline site 376 First St. in Table B-3.
244 State St 16739012 CRS 0.06 Restaurants, Bars 0.47 0.46 1920 No structural improvements in last 30 years. Site is
similar to existing restaurant pipeline site 376 First St. in Table B-3.
351 Main St 16740004 CRS 0.06 Commercial with surface parking lot 0.50 0.63 1925 Low FAR; No structural improvements in last 30 years. 60 Main St 16738057 CRS/O AD 0.06 Office or church 0.72 0.57 1963 Low FAR; No structural improvements in last 30 years. 189 Main St 16738053 CRS 0.06 Commercial or Offices 0.25 0.89 1960 No structural improvements in last 30 years. Similar to other multi-tenant commercial uses that are
redeveloping into housing in Table B-3.
4598 El Camino
Real 17001036 CN 0.07 Commercial and surface parking lot 0.86 0.91 1960 No structural improvements in last 30 years. Site is similar to existing restaurant pipeline site 376 First St. in Table B-3.

N San Antonio Rd 17001035 CN 0.07 Surface parking lot 0.00 - 0 Surface parking lot. 399 1st St 16741021 CD/R3 0.07 Restaurant and surface parking lot 0.40 0.53 1951 Vacant restaurant. No structural improvements in last 30 years. Low FAR. Site is similar to existing restaurant pipeline site 376 First St. in Table B-3.395 1st St 16741022 CD/R3 0.07 Office and surface parking lot 0.13 0.42 1954 Vacant building. No structural improvements in last 30 years. Low FAR. 248 Main St 16739074 CRS 0.07 Commercial or office with surface parking 0.66 0.62 1948 No structural improvements in last 30 years. Low FAR. 139 1st St 16739043 CD/R3 0.08 Auto Service, Garages1 2.41 0.44 1949 Owner interest in property redevelopment for housing.141 1st St 16739042 CD/R3 0.08 General Office1 3.09 0.41 2008 Owner interest in property redevelopment for housing.

Los Altos 2023-2031 Housing Element August 2023 Revisions 351
Agenda Item # 16.

B-28 | City of Los Altos Sites Inventory and Methodology Table B-7B: Existing Uses on Nonvacant Moderate/Above Moderate-Income Sites and Potential Sites for Rezoning for Moderate/Above ModerateIncome Address APN Zone
Parcel
Size
(acres)
Existing Use
Improvement to
Land
Value
Existing
FAR
Year
Built Additional Indicators of Redevelopment Potential
1019 N San
Antonio Rd 17001030 CN 0.08 Surface parking lot 0.00 - 0 Surface parking lot. 170 Main St 16738025 CRS 0.09 Bank and surface parking 0.00 0.22 0 No structural improvements in last 30 years. Low FAR. 1st St 16741006 CD/R3 0.10 Surface parking lot 0.00 - 0 Surface parking lot. 179 Main St 16738052 CRS 0.10 Commercial/restaurant 0.12 1.01 1952 No structural improvements in last 30 years. Site is
similar to existing restaurant pipeline site 376 First St. in Table B-3.
133 Main St 16738013 CRS 0.10 Commercial stores 0.32 1.02 1955 No structural improvements in last 30 years. Similar to other multi-tenant commercial uses that are
redeveloping into housing in Table B-3.
925 N San
Antonio Rd 17001026 CN 0.10 Dentist Office and surface parking 0.92 0.39 1961 No structural improvements in last 30 years. Low FAR. 4th St 16738051 CRS 0.10 Surface parking lot NA 1.01 0 City parking lot. Housing will be developed on City parking lots per Program 1.H. 141 Main St 16738012 CRS 0.10 Commercial and restaurant 0.74 1.02 1952 No structural improvements in last 30 years. Site is
similar to existing restaurant pipeline site 376 First St. in Table B-3.
1st St 16741016 CD/R3 0.11 Surface parking lot 0.03 - 0 Surface parking lot. 285 State St 16739064 CRS 0.11 Stores 0.29 1.01 1953 No structural improvements in last 30 years.

Sherwood Av 17001064 CN 0.11 Offices 0.00 2.17 0 No structural improvements in last 30 years. 262 Main St 16739076 CRS 0.11 Commercial and surface parking 0.86 0.82 1950 No structural improvements in last 30 years. 988 Sherwood Av 17001042 CN 0.12 Surface parking lot 0.00 - 1900 Surface parking lot. 952 Acacia Av 17001049 CN 0.12 Surface parking lot 0.62 - 1947 Surface parking lot. 252 State St 16739097 CRS 0.12 Commercial 0.89 0.98 1939 No structural improvements in last 30 years.

Los Altos 2023-2031 Housing Element August 2023 Revisions 352
Agenda Item # 16.

Sites Inventory and Methodology City of Los Altos | B-29 Table B-7B: Existing Uses on Nonvacant Moderate/Above Moderate-Income Sites and Potential Sites for Rezoning for Moderate/Above ModerateIncome Address APN Zone
Parcel
Size
(acres)
Existing Use
Improvement to
Land
Value
Existing
FAR
Year
Built Additional Indicators of Redevelopment Potential
357 Main St 16740003 CRS 0.12 Commercial 0.58 1.06 1936 No structural improvements in last 30 years. 435 1st St 16741018 CD/R3 0.12 Stores and surface parking 0.19 0.57 1946 No structural improvements in last 30 years. Low FAR.366 1st St 16741051 CD/R3 0.12 Commercial or office with surface parking 0.00 0.35 1955 No structural improvements in last 30 years. Low FAR. 160 Main St 16738021 CRS 0.12
Office or commercial
building with surface
parking

0.87 1.03 1955 No structural improvements in last 30 years. 147 Main St 16738011 CRS 0.13 Commercial building 0.99 0.82 1954 No structural improvements in last 30 years. 905 N San
Antonio Rd 17001023 CN 0.14 Commercial and surface parking lot 0.24 0.44 1955 No structural improvements in last 30 years. Low FAR. 270 2nd St 16740073 CD 0.14 Parking for Existing Office Buildings 0.00 0 0 Parking lot 151 Main St 16738010 CRS 0.15 Commercial 0.82 1.02 1954 No structural improvements in last 30 years. 394 2nd St 16741054 CD 0.16 Surface parking lot 0.01 - 0 Surface parking lot. 325 1st St 16740050 CD/R3 0.16 Commercial or industrial building 0.44 0.57 1954 No structural improvements in last 30 years. Low FAR.317 1st St 16740051 CD/R3 0.16 Auto Service, Garages 0.12 0.46 1962 No structural improvements in last 30 years. Low FAR.309 1st St 16740052 CD/R3 0.16 Auto Service, Garages 0.87 1.02 1924 No structural improvements in last 30 years. 2nd St 16740042 CD 0.16 Surface parking lot 0.00 - 0 Surface parking lot. 127 1st St 16739045 CD/R3 0.16 Restaurants, Bars1 0.46 0.59 1998 Owner interest in property redevelopment for housing.

Site is similar to existing restaurant pipeline site 376 First St. in Table B-3.
145 1st St 16739041 CD/R3 0.16 Restaurants with surface parking 0.56 0.81 1950 No structural improvements in last 30 years. Site is similar to existing restaurant pipeline site 376 First St. in Table B-3.

Los Altos 2023-2031 Housing Element August 2023 Revisions 353
Agenda Item # 16.

B-30 | City of Los Altos Sites Inventory and Methodology Table B-7B: Existing Uses on Nonvacant Moderate/Above Moderate-Income Sites and Potential Sites for Rezoning for Moderate/Above ModerateIncome Address APN Zone
Parcel
Size
(acres)
Existing Use
Improvement to
Land
Value
Existing
FAR
Year
Built Additional Indicators of Redevelopment Potential
151 1st St 16739040 CD/R3 0.16 Store and surface parking 0.67 - 1974 No structural improvements in last 30 years. Low FAR129 1st St 16739044 CD/R3 0.16 Individual Retail Stores1 0.85 0.43 2008 Owner interest in property redevelopment for housing.

Similar to other multi-tenant commercial uses that are
redeveloping into housing in Table B-3.

Parking Lot Only 16738050 CD/R3 0.16 Surface parking lot 0.00 - 0 Surface parking lot. 101 1st St 16739127 CD/R3 0.17 Offices or commercial and surface parking 0.07 0.45 1980 No structural improvements in last 30 years. Low FAR Orange Av 17516020 R1-10 0.18 Surface parking lot 0.18 - 0 Surface parking lot. 4th St 16738049 CRS 0.18 Surface parking lot NA - 0 City parking lot. Housing will be developed on City parking lots per Program 1.H. 987 Acacia Av 17001043 CN 0.18 Commercial or Residential 0.15 - 1945 Appears to be vacant 1031 N San
Antonio Rd 17001032 CN 0.19 Restaurants, Bars and surface parking 0.42 0.36 1946 Site is similar to existing restaurant pipeline site 376 First St. in Table B-3. Low FAR 32 Loucks Av 16716018 CT 0.20 Surface parking lot 0.20 0.35 1900 Parking lot 971 N San
Antonio Rd 17001027 CN 0.21 Restaurant and surface parking 0.15 0.65 1953 Site is similar to existing restaurant pipeline site 376 First St. in Table B-3. Low FAR 942 Acacia Av 17001051 CN 0.23
Home or commercial
building with surface
parking

0.40 0.22 1950 No structural improvements in last 30 years. Low FAR 994 Sherwood Av 17001086 CN 0.23 Surface parking lot 0.11 - 1900 Surface parking lot. 915 N San
Antonio Rd 17001025 CN 0.24 Offices or commercial with surface parking 0.57 0.66 1930 No structural improvements in last 30 years. Low FAR 416 2nd St 16741072 CD 0.30 Restaurants, Bars 0.46 0.63 1950 Site is similar to existing restaurant pipeline site 376 First St. in Table B-3. No structural improvements in last 30 years.
330 2nd St 16741046 CD 0.33 General Office and surface parking 0.80 - 1964 No structural improvements in last 30 years.

Los Altos 2023-2031 Housing Element August 2023 Revisions 354
Agenda Item # 16.

Sites Inventory and Methodology City of Los Altos | B-31 Table B-7B: Existing Uses on Nonvacant Moderate/Above Moderate-Income Sites and Potential Sites for Rezoning for Moderate/Above ModerateIncome Address APN Zone
Parcel
Size
(acres)
Existing Use
Improvement to
Land
Value
Existing
FAR
Year
Built Additional Indicators of Redevelopment Potential
275 3rd St 16738065 CD 0.46 Bank and surface parking lot 0.25 0.25 1977 Low FAR. No structural improvements in last 30 years. 301 2nd St 16740056 CD 0.80 Commercial building and surface parking lot 0.14 0.45 1963 Low FAR. No structural improvements in last 30 years. 1st St 16740039 CD 1.06 Surface parking lot NA - 0 City parking lot. Housing will be developed on City parking lots per Program 1.H. 2nd St 16740072 CD 1.07 Commercial Open Space Uses, Public Parking Lots NA - 0 City parking lot. Housing will be developed on City parking lots per Program 1.H. 701 Catalina Wy 17012042 R1-10 1.70 Church w. surface parking lot 0.10 0.23 0 Low FAR. No structural improvements in last 30 years.

No Address 16738002 CD 2.03 Surface parking lot NA - 0 City parking lot. Housing will be developed on City parking lots per Program 1.H. 2100 Woods Ln 34204089 R1-10 7.97
Potentially a school w. a
playground related to a
church

0.00 0.01 1971 Low FAR. No structural improvements in last 30 years.

B St 18915088* CN 0.09 Surface parking lot 0.02 - 1900 Surface parking lot. 1564 Miramonte
Av 18915090* CN 0.11
Offices and Surface
Parking lot 0.78 0.40 1954
Low FAR. No structural improvements in last 30 years.

Similar to other multi-tenant commercial uses that are
redeveloping into housing in Table B-3.
1530 Miramonte
Av 18915042* CN 0.12 Office and surface parking 0.45 0.36 1947 Low FAR. No structural improvements in last 30 years. Appears vacant. 982 Dolores Av 18915041* CN 0.12 Restaurant and surface parking lot 0.23 0.26 1950 Site is similar to existing restaurant pipeline site 376 First St. in Table B-3. No structural improvements in last 30 years. 1534 Carob Ln 18915038* CN 0.13 Office and surface parking 0.40 0.32 1950 Low FAR. No structural improvements in last 30 years. Appears vacant. 979 Fremont Av 18915059* CN 0.17 Commercial and surface parking 0.40 0.35 1956 Low FAR. No structural improvements in last 30 years.

Los Altos 2023-2031 Housing Element August 2023 Revisions 355
Agenda Item # 16.

B-32 | City of Los Altos Sites Inventory and Methodology Table B-7B: Existing Uses on Nonvacant Moderate/Above Moderate-Income Sites and Potential Sites for Rezoning for Moderate/Above ModerateIncome Address APN Zone
Parcel
Size
(acres)
Existing Use
Improvement to
Land
Value
Existing
FAR
Year
Built Additional Indicators of Redevelopment Potential
949 Fremont Av 18915063* CN 0.17 Offices or commercial and surface parking 0.74 0.68 1953 Low FAR. No structural improvements in last 30 years. Similar to other multi-tenant commercial uses that are redeveloping into housing in Table B-3. 948 Dolores Av 18915103* CN 0.21 Medical, Dental, Veterinary and surface parking 0.21 0.13 1950 Low FAR. No structural improvements in last 30 years. 981 Fremont Av 18915102* CN 0.26 Offices or commercial with surface parking 0.67 0.64 1945 Low FAR. No structural improvements in last 30 years. Similar to other multi-tenant commercial uses that are redeveloping into housing in Table B-3. 32 Loucks Av 16716018* CT 0.20 Surface parking lot 0.20 - 1900 Surface parking lot. 4940 El Camino
Real 17003083* CT 0.20 General Office1 3.39 1.32 2015 Owner interest in property redevelopment for housing. 5084 El Camino
Real 17004065* CT 0.31 Individual Retail Stores1 1.16 0.64 1950 Owner interest in property redevelopment for housing.

Similar to other multi-tenant commercial uses that are
redeveloping into housing in Table B-3.
475 S San
Antonio Rd 17039053* OA 0.13 General Office 0.73 0.35 1973 Low FAR. No structural improvements in last 30 years. Appears vacant 129 Fremont Av 17038062* OA 0.15 R-1 Converted to Office 0.91 0.34 1978 Low FAR. No structural improvements in last 30 years. Appears vacant 29 Hawthorne Av 17041037* OA 0.19 R-1 Converted to Office1 0.45 0.47 1990 Owner interest in property redevelopment for housing. 241 S San
Antonio Rd 17041065* OA 0.22 General Office 0.49 0.21 1953 Low FAR. No structural improvements in last 30 years. Appears vacant 195 S San
Antonio Rd 17041068* OA 0.24 General Office 0.27 0.44 1977 Low FAR. No structural improvements in last 30 years. 495 S San
Antonio Rd 17039058* OA 0.24 General Office 0.46 0.41 1970 Low FAR. No structural improvements in last 30 years. 301 S San
Antonio Rd 17040072* OA 0.26 General Office 0.73 0.37 1972 Low FAR. No structural improvements in last 30 years. 40 Hawthorne Av 17041014* OA 0.28 General Office1 0.63 0.39 1978 Owner interest in property redevelopment for housing.

Los Altos 2023-2031 Housing Element August 2023 Revisions 356
Agenda Item # 16.

Sites Inventory and Methodology City of Los Altos | B-33 Table B-7B: Existing Uses on Nonvacant Moderate/Above Moderate-Income Sites and Potential Sites for Rezoning for Moderate/Above ModerateIncome Address APN Zone
Parcel
Size
(acres)
Existing Use
Improvement to
Land
Value
Existing
FAR
Year
Built Additional Indicators of Redevelopment Potential
778 Altos Oaks Dr 18916006* OA 0.32 Medical, Dental, Veterinary 0.56 0.24 1957 Low FAR. No structural improvements in last 30 years. 762 Altos Oaks Dr 18916005* OA 0.32 Medical, Dental, Veterinary 0.55 0.42 1959 Low FAR. No structural improvements in last 30 years 747 Altos Oaks Dr 18916017* OA 0.32 Medical, Dental, Veterinary 0.16 0.34 1960 Low FAR. No structural improvements in last 30 years 802 Altos Oaks Dr 18916008* OA 0.32 Medical, Dental, Veterinary 0.25 0.34 1958 Low FAR. No structural improvements in last 30 years 746 Altos Oaks Dr 18916004* OA 0.33 Medical, Dental, Veterinary 0.08 0.34 1959 Low FAR. No structural improvements in last 30 years 811 Altos Oaks Dr 18916013* OA 0.33 Medical, Dental, Veterinary 0.47 0.44 1961 Low FAR. No structural improvements in last 30 years. Appears vacant. 763 Altos Oaks Dr 18916016* OA 0.33 Medical, Dental, Veterinary 0.68 0.45 1962 Low FAR. No structural improvements in last 30 years 795 Altos Oaks Dr 18916014* OA 0.33 Medical, Dental, Veterinary 0.40 0.33 1960 Low FAR. No structural improvements in last 30 years 826 Altos Oaks Dr 18916009* OA 0.34 Medical, Dental, Veterinary 0.30 0.33 1958 Low FAR. No structural improvements in last 30 years 731 Altos Oaks Dr 18916018* OA 0.34 Medical, Dental, Veterinary 0.79 0.28 1957 Low FAR. No structural improvements in last 30 years 827 Altos Oaks Dr 18916012* OA 0.34 Medical, Dental, Veterinary 0.18 0.39 1960 Low FAR. No structural improvements in last 30 years 369 S San
Antonio Rd 17040062* OA 0.38 General Office 0.43 0.29 1973 Low FAR. No structural improvements in last 30 years 842 Altos Oaks Dr 18916010* OA 0.40 Medical, Dental, Veterinary 0.68 0.24 1957 Low FAR. No structural improvements in last 30 years 730 Altos Oaks Dr 18916003* OA 0.42 Medical, Dental, Veterinary 0.67 0.07 1948 Low FAR. No structural improvements in last 30 years 900 N San
Antonio Rd 16716022* OA 0.49 General Office 0.16 0.63 1900 Low FAR. No structural improvements in last 30 years *These parcels are rezone sites. 1 Owner interest in property redevelopment for housing indicated. Source: City of Los Altos, Santa Clara County Assessor, LWC Los Altos 2023-2031 Housing Element August 2023 Revisions 357
Agenda Item # 16.

Sites Inventory and Methodology City of Los Altos | B-35 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 - 6101 12334 3839 420451 587625
Remaining RHNA See Very Low 479384 68157 127126 375344 1,0491,011 Site Inventory1 See Very
Low/Low 557 168169 323325 1,0481,051
Surplus / (Shortfall) See Very
Low/Low 1016 4143 (5219) (401)
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.

Los Altos 2023-2031 Housing Element August 2023 Revisions 358
Agenda Item # 16.

B-36 | 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 - 6101 12334 3839 420451 587625
Remaining RHNA See Very Low 479384 68157 127126 375344 1,0491,011 Site Inventory1 See Very
Low/Low 965 296297 387389 1,6481,651
Surplus / (Shortfall) See Very
Low/Low 418424 169171 1245 599640
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.

Los Altos 2023-2031 Housing Element August 2023 Revisions 359
Agenda Item # 16.

Sites Inventory and Methodology City of Los Altos | B-43 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 1112 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 168169
Los Altos 2023-2031 Housing Element August 2023 Revisions 360
Agenda Item # 16.

Sites Inventory and Methodology City of Los Altos | B-45 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 5366 1ST ST 16741051 CD/R3 Downtown Commercial 0.12 Commercial or office with surface parking 1955 0.00 No Above Moderate 8 56 160 MAIN ST 16738021 CRS Downtown Commercial 0.12 Office or commercial building with surface parking 1955 0.87 No Above Moderate 2 2147 MAIN ST 16738011 CRS Downtown Commercial 0.13 Commercial building 1954 0.99 No Above Moderate 3 2905 N SAN ANTONIO RD 17001023 CN Thoroughfare Commercial 0.14 Commercial and surface parking lot 1955 0.24 No Above Moderate 5 4270 2ND ST 16740073 CD Downtown Commercial 0.14 Parking for Existing Office Buildings 0 0.00 No Above Moderate - 2151 MAIN ST 16738010 CRS Downtown Commercial 0.15 Commercial 1954 0.82 No Above Moderate 3 2394 2ND ST 16741054 CD Downtown Commercial 0.16 Surface parking lot 0 0.01 Yes Above Moderate - 2325 1ST ST 16740050 CD/R3 Downtown Commercial 0.16 Commercial or industrial building 1954 0.44 No Above Moderate 10 7317 1ST ST 16740051 CD/R3 Downtown Commercial 0.16 Auto Service, Garages 1962 0.12 No Above Moderate 10 7309 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 - 2127 1ST ST 16739045 CD/R3 Downtown Commercial 0.16 Restaurants, Bars 1998 0.46 No Above Moderate 10 7145 1ST ST 16739041 CD/R3 Downtown Commercial 0.16 Restaurants with surface parking 1950 0.56 No Above Moderate 10 7151 1ST ST 16739040 CD/R3 Downtown Commercial 0.16 Store and surface parking 1974 0.67 No Above Moderate 10 7129 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 2101 1ST ST 16739127 CD/R3 Downtown Commercial 0.17 Offices or commercial and surface parking 1980 0.07 No Above Moderate 11 78 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 3987 ACACIA AV 17001043 CN Thoroughfare Commercial 0.18 Commercial or Residential 1945 0.15 Yes Above Moderate 7 51031 N SAN ANTONIO RD 17001032 CN Thoroughfare Commercial 0.19 Restaurants, Bars and surface parking 1946 0.42 No Above Moderate 7 532 LOUCKS AV 16716018 CT Thoroughfare Commercial 0.20 Surface parking lot 1900 0.20 Yes Above Moderate 7 6971 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 1775 EDGE LN 18918102 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.23 Undeveloped land 1938 0.00 No Above Moderate 1 11347 RICHARDSON AV 31807008 R1-10 Public and Institutional 0.23 Undeveloped lot 0 0.00 Yes Above Moderate 1 1942 ACACIA AV 17001051 CN Thoroughfare Commercial 0.23 Home or commercial building with surface parking 1950 0.40 Yes Above Moderate 9 6994 SHERWOOD AV 17001086 CN Thoroughfare Commercial 0.23 Surface parking lot 1900 0.11 Yes Above Moderate 9 6915 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 1270 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 1915 N SAN ANTONIO RD 17001025 CN Thoroughfare Commercial 0.24 Offices or commercial with surface parking 1930 0.57 No Above Moderate 9 7625 PALM AV 17516088 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.24 Undeveloped land 0 0.00 No Above Moderate 1 11040 RUNNYMEAD CT 19344033 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.24 Undeveloped land 0 0.00 No Above Moderate 1 1718 RONALD CT 18919003 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.25 Undeveloped land 0 0.00 No Above Moderate 1 1608 UNIVERSITY TR 17514021 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.29 Undeveloped land 0 0.00 No Above Moderate 1 174 OAK ST 16736008 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.30 Undeveloped lot 0 0.00 No Above Moderate 1 1416 2ND ST 16741072 CD Downtown Commercial 0.30 Restaurants, Bars 1950 0.46 No Above Moderate - 4 Los Altos 2023-2031 Housing Element August 2023 Revisions 361
Agenda Item # 16.

B-46 | 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 1899 MADONNA WY 33603030 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.30 Undeveloped land 0 0 No Above Moderate 1 1330 2ND ST 16741046 CD Downtown Commercial 0.33 General Office and surface parking 1964 0.8 No Above Moderate - 51276 MONTCLAIRE WY 34209045 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.35 Undeveloped lot 1900 0 No Above Moderate 2 134 MT HAMILTON AV 16737034 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.36 Undeveloped lot 0 0 No Above Moderate 2 1379 HAWTHORNE AV 17028058 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.45 Vacant flag lot 0 0 No Above Moderate 2 11491 MIRAMONTE AV 19341039 R1-10 Single-Family, Medium Lot (4 du/net acre) 0.45 Vacant flag lot 0 0 No Above Moderate 2 1275 3RD ST 16738065 CD Downtown Commercial 0.46 Bank and surface parking lot 1977 0.25 No Above Moderate - 6420 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 11000 FREMONT AV 31801036 CN Neighborhood Commercial 1.56 Medical, Dental, Veterinary w. surface parking lot 1960 1.22 No Above Moderate 61 4701 CATALINA WY 17012042 R1-10 Public and Institutional 1.70 Church w. surface parking lot 0 0.1 No Above Moderate 7 5NO 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 323325
1The "Public and Institutional" General Plan designation allows housing consistent with the zoning district.2Zeroes indicate Year Built data unavailable.3Blanks 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. 4Vacant 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
Los Altos 2023-2031 Housing Element August 2023 Revisions 362
Agenda Item # 16.

B-48 | 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 5301 S SAN ANTONIO RD 17040072 OA Downtown Commercial 0.26 General Office 1972 0.73 No Moderate 0 5 5 540 HAWTHORNE AV 17041014 OA Downtown Commercial 0.28 General Office 1978 0.63 No Moderate 0 6 6 6778 ALTOS OAKS DR 18916006 OA Neighborhood Commercial 0.32 Medical, Dental, Veterinary 1957 0.56 No Moderate 0 6 6 6762 ALTOS OAKS DR 18916005 OA Neighborhood Commercial 0.32 Medical, Dental, Veterinary 1959 0.55 No Moderate 0 6 6 6747 ALTOS OAKS DR 18916017 OA Neighborhood Commercial 0.32 Medical, Dental, Veterinary 1960 0.16 No Moderate 0 6 6 6802 ALTOS OAKS DR 18916008 OA Neighborhood Commercial 0.32 Medical, Dental, Veterinary 1958 0.25 No Moderate 0 6 6 6746 ALTOS OAKS DR 18916004 OA Neighborhood Commercial 0.33 Medical, Dental, Veterinary 1959 0.08 No Moderate 0 7 7 7811 ALTOS OAKS DR 18916013 OA Neighborhood Commercial 0.33 Medical, Dental, Veterinary 1961 0.47 No Moderate 0 7 7 7763 ALTOS OAKS DR 18916016 OA Neighborhood Commercial 0.33 Medical, Dental, Veterinary 1962 0.68 No Moderate 0 7 7 7795 ALTOS OAKS DR 18916014 OA Neighborhood Commercial 0.33 Medical, Dental, Veterinary 1960 0.40 No Moderate 0 7 7 7826 ALTOS OAKS DR 18916009 OA Neighborhood Commercial 0.34 Medical, Dental, Veterinary 1958 0.30 No Moderate 0 7 7 7731 ALTOS OAKS DR 18916018 OA Neighborhood Commercial 0.34 Medical, Dental, Veterinary 1957 0.79 No Moderate 0 7 7 7827 ALTOS OAKS DR 18916012 OA Neighborhood Commercial 0.34 Medical, Dental, Veterinary 1960 0.18 No Moderate 0 7 7 7369 S SAN ANTONIO RD 17040062 OA Downtown Commercial 0.38 General Office 1973 0.43 No Moderate 0 8 8 8842 ALTOS OAKS DR 18916010 OA Neighborhood Commercial 0.40 Medical, Dental, Veterinary 1957 0.68 No Moderate 0 8 8 8730 ALTOS OAKS DR 18916003 OA Neighborhood Commercial 0.42 Medical, Dental, Veterinary 1958 0.67 No Moderate 0 8 8 8900 N SAN ANTONIO RD 16716022 OA Thoroughfare Commercial 0.49 General Office 1900 0.16 No Moderate 0 10 10 10161 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 204926 EL CAMINO REAL 17003073 CT Thoroughfare Commercial 1.05 Restaurant and surface parking lot 1968 0.05 No Lower 32 42 10 101000 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
10481,051 557 168169 323325
16481,651 965 296297 387389
1The "Public and Institutional" General Plan designation allows housing consistent with the zoning district.2Zeroes indicate Year Built data unavailable.3Due to rezoning, income level would shift from above moderate to lower, resulting in a loss of above moderate capacity.4APN 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
Los Altos 2023-2031 Housing Element August 2023 Revisions 363
Agenda Item # 16.

Affirmatively Furthering Fair Housing City of Los Altos | F-61 Table F-13: Meaningful Actions
Contributing
Factor
AFFH
Strategy Housing Implementation Programs
Land use and
zoning laws
New housing
choices and
affordability in
areas of
opportunity

1.A: Rezone for RHNA shortfall

1.C: Allow housing in the Office Administrative (OA) District

1.E: Update the Loyola Corners Specific Plan
Availability of
affordable units
in a range of
sizes
New housing
choices and
affordability in
areas of
opportunity

1.B: Facilitate higher density housing in the Commercial Thoroughfare (CT) District

1.H Facilitate housing on City-owned sites

2.D: Encourage and streamline Accessory Dwelling Units (ADUs)

6.A: Assist residents with housing discrimination and landlord-tenant complaints
Community
opposition
New housing
choices and
affordability in
areas of
opportunity

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

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

3.H: Amend design review process and requirements

3.K: Standardize multimodal transportation requirements Location and
type of
affordable
housing
New housing
choices and
affordability in
areas of
opportunity

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

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

6.C: Target housing development in highest resource areas

6.F: Affirmatively market physically accessible units
Protect
existing
residents from
displacement

5.A: Monitor condominium conversions

6.E: Prepare and distribute anti-displacement information Housing
mobility
strategies

1.M: SB 9 implementation

4.J: Facilitate alternate modes of transportation for residents

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

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

6.G: Housing Mobility
Attachment: AFFH Segregation Report, Los Altos
Los Altos 2023-2031 Housing Element August 2023 Revisions 364
Agenda Item # 16.
365
Agenda Item # 16.

August 12, 2023
Los Altos City Council
1 N. San Antonio Road
Los Altos, CA 94022
Re: Revised Housing Element
Dear Mayor Meadows, Vice Mayor Weinberg, and Councilmembers Lee Eng, Fligor, and Dailey:

Los Altos Residents supports the revisions made to the Los Altos Housing Element.

City Staff worked diligently to respond to the Housing and Community Development’s (HCD) concerns. In particular, City Staff’s efforts to address HCD’s concerns regarding non-vacant sites was thoroughly researched and, as a result of their efforts, much additional positive information was learned regarding the redevelopment prospects of these site.

We trust that this revised version of the Los Altos Housing Element will be promptly certified by HCD.

Sincerely,
Freddie Wheeler
Co-Founder
Los Altos Residents
www.LosAltosResidents.org
366
Agenda Item # 16.

August 14, 2023
Dear Mayor Meadows, Councilmembers, and HCD Reviewers:

While the Housing Element Update process has taken longer than expected for the City of Los Altos, we are excited to support this next iteration of Los Altos’ goals to plan for additional housing, to encourage development, and to streamline housing development processes. It is clear that our City Staff has worked very hard to amend the Housing Element and confirm approval from HCD. Upon reviewing the most recent set of revisions, it is incredible to see that Staff has evaluated every non-vacant site at the various income levels for redevelopment potential. We hope for speedy HCD approval so that we can begin implementing the many programs and features that will allow us to welcome new neighbors.

Once the document is approved, LAAHA looks forward to supporting programs that lay the groundwork for a city with its most inclusive housing policies to date, which expand opportunities for all who choose to live, work, retire and go to school here.

A few programs that we’re excited to support include -
● Streamlining of the ADU process, allowing multiple jADUs per property, and availability of ADU plans and resources for homeowners
● The development of an affordable project on a city-owned lot ● The rezoning process for various districts
● Downtown parking analysis
We appreciate HCD’s work to hold all cities accountable to our State’s housing goals. We believe that everyone has a right to housing and that each city has a part to play in creating places to live.

Respectfully,
Los Altos Affordable Housing Alliance Steering Committee Los Altos Affordable Housing Alliance
Committed to educating and inspiring the Los Altos community to build housing that is affordable for those who live and work in Los Altos
https://losaltosaffordablehousing.org/
367
Agenda Item # 16.

CHAC UPDATE TO JPA PARTNERS
Thank you JPA reps for sharing these talking points with your governing boards/leadership from 8/16/23 - 9/16/23.
● The environment in which mental health services are provided is rapidly evolving with both new challenges and new opportunities.
● CHAC has a 50-year history of providing critical support to individuals and families in the communities of Los Altos, Los Altos Hills, Mountain View and beyond. ● The CHAC board is committed to maintaining these critical community and school-based services that our communities rely upon in this changing environment. ● Fiscal challenges this year have impacted CHAC services, most notably the Clinic was placed on hiatus on August 1. The CHAC board and staff are evaluating sustainability options.
● Part of our sustainability evaluation includes whether or not CHAC should remain a completely stand-alone agency or should partner with another provider that shares our mission and expertise and has the ability to enhance how our services are provided. ● A natural byproduct of examining potential partnerships is whether or not the current Joint Powers Authority (JPA) structure is the best way for CHAC to be organized going forward (and whether or not the JPA structure would enhance or hinder potential partnerships)
● While no assumptions are being made as we examine structural and partnership alternatives, it is important for the CHAC board to communicate that the JPA structure is one of the issues being examined.
● We look forward to working with the JPA partner representatives on the board as well as the governing boards of each of the JPA members as we undertake this critical evaluation this Fall.
368
Agenda Item # 17.

Los Altos City CouncilAugust 22, 2023

Los Altos City Council
August 22, 2023