Los Altos Hills City Council
April 20, 2023

Town of Los Altos Hills Housing Element
Review of Past Accomplishments 33
Program Objective Time Frame Accomplishments/
Effectiveness
Continued
Appropriateness
New
Program/
Location
over $100,000 in the 2021-22
budget.
34 Support Senior Housing
Solutions (formerly Project
Match), a home sharing service
that matches seniors interested
in sharing their homes with other
seniors, including publicizing
Senior Housing Solutions its
services via articles in local
newspapers and newsletters,
and including financial support
to assist Senior Housing
Solutions. Senior Housing
Solutions is headquartered in
Milpitas and operates
throughout the Peninsula.

Ongoing
The Town currently provides
support for seniors through the
local Community Services Agency
(CSA) which provides food and
services to low income and
homeless individuals and the
Community Health Awareness
Council (CHAC) which provides
affordable mental health care for
homeless individuals and
seniors. The amount provided
has increased from $10,000 to
over $100,000 in the 2021-22
budget.

Retain and
Modify –
Consolidate with
Program 33.

E-7
35 The County of Santa Clara
contracts with Mid-Peninsula
Citizens for Fair Housing for
provision of fair housing
education, outreach, and
counseling services. While not
providing direct funding to MidPeninsula Citizens for Fair Housing, the Town of Los Altos
Hills is one of several
Ongoing. Provide
fair housing
brochures and
website link by
December 2015.

The Town continues to work with
the County of Santa Clara to
provide fair housing education,
outreach, and counseling
services to its residents. The
Town is planning to update the
website to provide information
on current services available.

Continue.

D-3, E-1,
F-3

Town of Los Altos Hills Housing Element
Review of Past Accomplishments 34
Program Objective Time Frame Accomplishments/
Effectiveness
Continued
Appropriateness
New
Program/
Location
jurisdictions that participate with
the County of Santa Clara in
providing fair housing services to
its residents and make use of the
programs available through MidPeninsula Citizens for Fair Housing. The Town will prepare a
handout with information on this
service and will make it available
at the public counter and provide
a link on the Town’s Web-site.
36 As part of this Housing Element,
the Town has conducted a
review of zoning, building codes,
and permit processing, and has
identified the following actions
appropriate to better facilitate
the provision of accessible
housing:

Establish written procedures for
reasonable accommodation
requests for persons with
disabilities with respect to
zoning, permit processing and
building laws.

Zoning Ordinance
Revisions by 2016
The Town does review, on a caseby-case basis, requests for reasonable accommodation.

Although very few requests have
been made, the Town does not
have any regulations that would
prohibit or impair any
reasonable accommodation
request.

Continue. B-9
37 Refer any individual or
household in need of emergency
Ongoing In 2015, the Town adopted
regulations allowing for
Continue and
Modify – The
G-4

Town of Los Altos Hills Housing Element
Review of Past Accomplishments 35
Program Objective Time Frame Accomplishments/
Effectiveness
Continued
Appropriateness
New
Program/
Location
shelter to appropriate agencies
and organizations.

Emergency Shelter Housing
within the community. Although
the Town has not received any
written requests by persons or
households in need, staff would
refer anybody in need to the
appropriate resources.

Town will
continue to refer
individuals to
appropriate
organizations on
an ongoing
process. The
Town will also
establish a new
website page
with a collected
link of housing
resources and
use the website
to assist persons
in need.
38 Meet with Hidden Villa, an
educational community
organization in the Town’s
Sphere of Influence, to discuss
potential partnership on
transitional housing services.

December 2015
The Town has provided annual
funding of $10,000 to support
educational programs at Hidden
Villa and continues to discuss
options for housing services on
the site.

Continue and
Modify –
Consolidate
programs
involving
coordination with
faith-based and
other nonprofit
area service
providers.

A-9

Town of Los Altos Hills Housing Element
Review of Past Accomplishments 36
Program Objective Time Frame Accomplishments/
Effectiveness
Continued
Appropriateness
New
Program/
Location
39 Review and update development
review procedures in
coordination with city
departments and other
responsible agencies to ensure
efficient customer service and
expedient delivery of
development review services.

Ongoing
Since 2019, process
improvements have been
implemented to allow for
electronic plan submittals,
payments, and remote meetings.

The Town also adopted a
streamlined process for ADUs in
2020 and for SB 9 units in 2021
that allow for ministerial
approval.

Continue and
Modify – Improve
metrics and
include new
procedures to
comply with
Permit
Streamlining Act
and Housing
Accountability Act
requirements.

B-1
40 Modify as needed the existing
Fast Track Guide for new
residential development to assist
in design and review.

Ongoing
The Town continues to utilize the
adopted Fast-Track Guide for
new residences, which is posted
online, and the Town will be
updating the graphics and
handouts.

Continue and
Modify –
Consolidate this
program with a
new streamlining
program and
objective
standard
program.

B-1, B-4
41 Update the 2013 Senior
Community Survey that
evaluates the condition and need
for senior services and report to
City Council.

Ongoing
In 2016, a Town Satisfaction
Survey was completed which
found that there was support for
senior services within the
community.

Remove –
Completed.

Town of Los Altos Hills Housing Element
Review of Past Accomplishments 37
Program Objective Time Frame Accomplishments/
Effectiveness
Continued
Appropriateness
New
Program/
Location
42 Continue to participate as part of
the Urban County to access
Community Development Block
Grant (CDBG) and Housing Trust
of Santa Clara County funds
through Santa Clara County.

Apply to the County for specific
community service projects to
provide financial support for
Senior Housing Solutions and
Mid-Peninsula Housing Coalition
projects.

Ongoing
Apply to the County
as specific projects
are proposed
The Town has not applied for any
CDBG funding for any specific
projects but does support use of
funds for community services.

Continue and
Modify – Increase
specificity on
grant procedures
and include other
possible sources
of funding.

D-2
43 Work with the City of Los Altos to
measure actual sewer capacity
by installing flow meters
throughout the system.

Ongoing
Temporary flow meters were
installed in four locations where
the sewer trunks enter Los Altos.

Remove –
Completed.

B-8
44 Make available material including
brochures and pamphlets to
educate the Town public on the
benefits of undergrounding
utility lines.

Ongoing
Completed. Town is working on
undergrounding utilities for fire
safety.

Remove – This is
not necessary as
a program in the
Housing Element.
45 Make available material on the
Town’s Web Site to educate the
Town public on the benefits of
and requirements for brush and
weed abatement.

Ongoing
Completed. Brochures are
available in the Town lobby and
information is available on the
Town’s website. The LAH Fire
District also provides brush
Remove – This is
not necessary as
a program in the
Housing Element.

Town of Los Altos Hills Housing Element
Review of Past Accomplishments 38
Program Objective Time Frame Accomplishments/
Effectiveness
Continued
Appropriateness
New
Program/
Location
clearance and conducts fire
safety workshops.
46 Continue the Town’s policy
requiring the removal of
eucalyptus trees as a condition
of development approval for new
residences, additions, or
alterations to structures which
individually or cumulatively equal
or exceed 1,200 square feet of
floor area.

Ongoing
Standard conditions of approval
are applied to all new residences
to remove hazardous eucalyptus
trees within 150 feet of the main
structure.

Remove – This is
not necessary as
a program in the
Housing Element.

Include in
another relevant
element of the
General Plan.
47 Make available material on the
Town’s Web Site to educate the
Town public on the hydrant
upgrades requirements.

Ongoing
Completed. Fire Hydrants have
been upgraded and maintenance
is ongoing.

Remove – This is
not necessary as
a program in the
Housing Element.
48 Amend the Fire Code to address
the natural characteristics of the
Los Altos Hills area and amend
the Wildland-Urban Interface Fire
Area map to reflect the current
fire hazards.

December 2015
In 2020, the Town adopted
amendments to the Residential
Building and Fire Codes to
require that all new construction
meets the Wildland-Urban
Interface regulations. These
regulations require ignition
resistant exterior materials,
enclosed eaves, and other fire
resistant designs.

Remove – This is
not necessary as
a program in the
Housing Element.

Include in
another relevant
element of the
General Plan.

Town of Los Altos Hills Housing Element
Review of Past Accomplishments 39
Program Objective Time Frame Accomplishments/
Effectiveness
Continued
Appropriateness
New
Program/
Location
These regulations apply to every
property in the Town.

Town of Los Altos Hills Housing Element
Review of Past Accomplishments 40
Overall Assessment
As a whole, the Town of Los Altos Hills was successful in implementing its 5th Cycle Housing Element. The Town has exceeded the RHNA production for the very low, low, and above moderate categories, and is anticipated to exceed the Moderate allocation prior to the end of the 5th Cycle.

Additionally, significant financial support was provided to non-profit service agencies assisting populations with special needs. Nearly all programs in the 5th Cycle Element were completed or implemented. While the Town has made progress, it recognizes that housing costs in Los Altos Hills continue to be out of reach for most residents of the area. In response, the Town is committing to a comprehensive suite of programs designed to affirmatively further fair housing, increase local housing production, support special needs populations, and create an overlay zone and rezone identified opportunity sites to accommodate multifamily development.

Town of Los Altos Hills Housing Element
Housing Needs Assessment 41
Housing Needs Assessment
The housing needs assessment analyzes the various types of housing needs throughout Los Altos Hills, including existing housing needs, projected housing needs, and special housing needs. These components are presented in the context of Los Altos Hills, Santa Clara County, and the entire Bay Area region. Understanding the housing needs of the community helps to build effective programs and policies that address the needs of the community for the 2023–2031 Housing Element Cycle.

The needs assessment uses multiple data sources for analysis. Primary data sources include the 2019 American Community Survey (ACS), the 2014–2018 Comprehensive Housing Affordability Strategy (CHAS) published by the US Department of Housing and Urban Development (HUD), and the 2020 US Census. The CHAS provides information related to households with housing problems, including overpayment, overcrowding, and those without complete kitchen facilities and plumbing systems. The CHAS data is based on the 2014–2018 ACS data files but differs from the standard files by including a variety of housing need variables split by HUD-defined income limits and HUD-specified household types. CHAS data uses the HUD Area Median Family Income (HAMFI) which does not differ from the area median income used by the California Department of Housing and Community Development (HCD)HCD, except that it does not utilize the categories described below. Both AMI and HAMFI use the same median income from the metropolitan statistical area. In Los Altos Hills, the calculation for the San Jose/Sunnyvale/Santa Clara metropolitan statistical area is used.

Tables that use HAMFI instead of AMI are noted.

Note that data from the different sources and different years may have varying estimates for totals such as population or number of households.

Some of the data is broken down by income group. HCD The California Department of Housing and Community Development (HCD) uses five income categories to evaluate housing need based on the area median income (AMI) for each metropolitan statistical area; they are used for both funding and planning purposes. The categories are as follows:
▪ Extremely low-income households, between 0% and 30% of the AMI ▪ Very low-income households, between 31% and 50% of the AMI ▪ Low-income households, between 51 and 80% of the AMI
▪ Moderate-income households, between 81% and 120% of the AMI ▪ Above moderate-income households, above 120% of the AMI Extremely low-, very low-, and low-income households may be grouped together for planning purposes and referred to as “lower-income households.”

Town of Los Altos Hills Housing Element
Housing Needs Assessment 42
Projected Housing Needs
As required by California general plan law, each jurisdiction must have land zoned to accommodate its fair share of the regional housing need. Each jurisdiction’s share of needs is known as the Regional Housing Needs Allocation (RHNA). HCD determines the needs for each region of the state, and the regional planning agency is then responsible for allocating to each jurisdiction its share of the regional housing need. The Association of Bay Area Governments (ABAG) is responsible for allocating housing needs to each jurisdiction within nine counties in the Bay Area region, which includes Santa Clara County, where Los Altos Hills is located. The RHNA assigned to each jurisdiction is broken down into the five income levels mentioned above: extremely low, very low, low, moderate, and above moderate.

As determined by HCD, the fair share for the Bay Area region for the 2023–2031 planning period is 441,176 units. The RHNA for Los Altos Hills is shown in Table 3. Los Altos Hills has a RHNA of 489 total units, which includes 197 extremely low-, very low-, and low-income units.

Table 3: Los Altos Hills RHNA, 2023–2031
Income Group % of County AMI Units % of Units
Extremely Low* 0–30% 62 12.7%
Very Low 31–50% 63 12.9%
Low 51–80% 72 14.7%
Moderate 80–120% 82 16.8%
Above Moderate > 120% 210 42.9%
Total 489 100%
Source: Regional Housing Needs Allocation, ABAG 2023-2031. *Note: Pursuant to AB 2634, local jurisdictions are also required to project the needs of extremely low-income households (0– 30% of AMI). 50 percent of the very low-income households are presumed to qualify as extremely low-income households.

Town of Los Altos Hills Housing Element
Housing Needs Assessment 43
Existing Housing Needs
Existing housing needs take into consideration demographic information about the community and region, including population and employment trends. It also considers data about the housing stock and characteristics, including housing age, condition, rates of cost burden, and rates of overcrowding.

Population, Employment, and Household Characteristics
Population Growth Trends
Table 4 provides the regional population trends of Los Altos Hills, selected regional jurisdictions, and Santa Clara County from 2010 to 2020 decennial census estimates. The Town of Los Altos Hills has a population of 8,489 as reported by the 2020 US Census. The County saw an 8.7 percent increase in population over the 10-year time span. The Town of Los Altos Hills experienced a lower growth rate of 7.2 percent, about 567 people. This is a comparable growth to the nearby jurisdictions of San Jose and Palo Alto. Los Altos and Sunnyvale saw the largest relative population change at 9.1 percent and 11.2 percent, respectively, while Cupertino and Saratoga experienced lower rates of population change at

3.6 percent and 3.8 percent, respectively.

Table 4: Regional Population Change, 2010–2020
County 2010 2020 % Change
Santa Clara County 1,781,642 1,936,259 8.7%
Los Altos Hills 7,922 8,489 7.2%
Cupertino 58,302 60,381 3.6%
Los Altos 28,976 31,625 9.1%
Palo Alto 64,403 68,572 6.5%
San Jose 945,942 1,013,240 7.1%
Saratoga 29,926 31,051 3.8%
Sunnyvale 140,081 155,805 11.2%
Source: US Census 2010 and 2020.

Town of Los Altos Hills Housing Element
Housing Needs Assessment 44
Table 5 displays the annual average growth rate of Los Altos Hills and Santa Clara County from 2000 to 2021. The Town of Los Altos Hills grew 7.2 percent from 2010 to 2020, increasing from the growth of 0.3 percent between 2000 and 2010. The growth rate for Los Altos Hills is lower than that of Santa Clara County as a whole, as the County’s population grew 7.2 percent from 2010 to 2020 and 8.7 percent between 2000 and 2010. The population of Los Altos Hills has continued to slowly grow since its incorporation in 1956.

Table 5: Annual Average Population Growth, 2000–2020
Jurisdiction 2000 2010 2020
2000-2010 2010-2020
Population AAGR Population AAGR
Los Altos
Hills 7902 7,922 8,489 20 -0.2% 567 0.6%
Santa Clara
County 1,682,585 1,781,642 1,936,259 99,057 0.6% 154,617 1.0% Source: US Decennial Census 2020.

Age Composition
Certain age groups have different housing needs that influence housing demand. Table 6 displays the population and percentage change in Los Altos Hills per age group in 2000, 2010, and 2019 using US Census data for those years. Trends over time show a decrease in population aged 35–54, while there has been in increase in population aged 55 over older, especially in the 75–84 age range.

Table 6: Los Altos Hills Population by Age, 2000–2019
Age Group 2000 2010 2019 % Change (2000–2010) % Change (2010–2019) Age 0-4 355 273 239 -23.1% -12.5%
Age 5-14 1,151 1,118 1,181 -2.9% 5.6%
Age 15-24 674 762 861 13.1% 13.0%
Age 25-34 450 344 468 -23.6% 36.0%
Age 35-44 1,100 739 648 -32.8% -12.3%
Age 45-54 1,540 1,471 1,389 -4.5% -5.6%
Age 55-64 1,290 1,377 1,424 6.7% 3.4%
Age 65-74 777 1,073 1,183 38.1% 10.3%
Age 75-84 471 548 956 16.3% 74.5%
Age 85+ 94 217 156 130.9% -28.1%
Totals 7,902 7,922 8,505 0.3% 7.4%
Source: US Census 2000, 2010, 2019.

Town of Los Altos Hills Housing Element
Housing Needs Assessment 45
Figure 1 shows the age distribution of the population in Los Altos Hills and Santa Clara County. Compared to the County, Los Altos Hills has a higher percentage of the population over 45 years of age and a lower proportion of the population aged 20 to 44. A higher proportion of the population over 65 years old may indicate needs for elderly support services and housing accommodation options in the Town. As shown in Figure 1, 16.5 percent of the Los Altos Hills population is between the ages of 20 and 44. Comparatively,

36.7 percent of the County’s population is between the ages of 20 and 44. This smaller proportion may indicate a lack of housing that is affordable to people in this age range, who tend to have lower disposable incomes or are first-time homebuyers. According to the United States Bureau of Labor Statistics, the peak income and expenditures age range of consumers is from ages 35 to 55 and peak from ages 45 to 54 before declining.3 Figure 1: Population Age Distribution
Source: ACS 5-Year Estimates Data, 2019.
3 Bureau of Labor Statistics, December 2015. https://www.bls.gov/opub/btn/volume-4/consumerexpenditures-vary-by-age.htm 0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Under 5 years
5 to 9 years
10 to 14 years15 to 19 years20 to 24 years25 to 29 years30 to 34 years35 to 39 years40 to 44 years45 to 49 years50 to 54 years55 to 59 years 60 and 64 years65 and 69 years
70 to 74 years75 to 79 years80 to 84 years
85 years and over
Percent of Population
Age Range
Los Altos Hills Santa Clara County

Town of Los Altos Hills Housing Element
Housing Needs Assessment 46
Race and Ethnicity
The racial and ethnic composition and change from 2010 to 2019 of Los Altos Hills is shown in Table 7. While the percentage of the population that is non-Hispanic, White decreased by about 4 percent from 2010 to 2019, the Town still has a majority non-Hispanic, White population. From 2010 to 2019, the number of Asian or Pacific Islanders in Los Altos Hills increased by 111 people, but the share of the population decreased by just over a percent, from 33.5 to 33.2 percent. The relative decrease is likely due to the increase in Hispanic residents in the Town. The 2019 ACS shows that Los Altos Hills has a small Hispanic or Latino population at about 4.5 percent, which is an increase from 1.5 percent in 2010.

Table 7: Racial and Ethnic Composition, Los Altos Hills, 2010–2019 Racial/Ethnic Group
2010 2019
Number % (of total
7,858) Number % (of total 8,505)
Not Hispanic or Latino
White 4,970 63.2% 5,088 59.8%
Black 14 0.2% 52 0.6%
American Indian & Alaska Native 0 0% 0 0%
Asian or Pacific Islander 2,629 33.5% 2,740 32.2%
Some other race alone 0 0.0% 24 0.3%
Two or more races 127 1.6% 218 2.6%
Subtotal 7,740 98.5% 8,122 95.5%
Hispanic or Latino
White 118 1.5% 343 4.0%
Black 0 0% 13 0.2%
American Indian & Alaska Native 0 0% 0 0%
Asian or Pacific Islander 0 0% 0 0%
Some other race alone 0 0% 27 0.3%
Two or more races 0 0% 0 0%
Subtotal 118 1.5% 383 4.5%
Total 7,858 8,505
Source: ACS 5-Year Estimates Data, 2019.

Town of Los Altos Hills Housing Element
Housing Needs Assessment 47
A comparison of the racial and ethnic composition of Los Altos Hills, Santa Clara County, and the Bay Area region is shown in Figure 2, with estimates from the 2019 5-year ACS data. The Town of Los Altos Hills is 60 percent white, non-Hispanic, which is significantly higher than the County and Bay Area region, at 32 percent and 39 percent, respectively. The Town of Los Altos Hills has a slightly lower percentage of the population that is Asian/Asian Pacific Islander (32 percent) than Santa Clara County (37 percent), but it is higher than the Bay Area Region (27 percent). There is a noticeable difference in the Hispanic/Latino population in Los Altos Hills and both Santa Clara County and Bay Area region. 5 percentage of the population identifies as Hispanic or Latino, compared to 25 percent and 24 percent of the County and region, respectively. Compared to both the County and Bay Area region, Los Altos Hills is significantly more White and less Hispanic.

Figure 2: Regional Racial/Ethnic Composition
Source: ACS 5-Year Estimates Data, 2019, Table B03002.

Employment Trends
Employment trends in a region can have a significant impact on housing needs. Santa Clara County has experienced rapid growth in high-paying employment opportunities, especially 32% 37%
27%
6%
60%
32% 39%
4% 5%
5%
25% 24%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Los Altos Hills Santa Clara County Bay Area
Percent of Population
Hispanic or Latino
Other Race or Multiple Races, Non-Hispanic
White, Non-Hispanic
Black or African American, Non-Hispanic
Asian / API, Non-Hispanic
American Indian or Alaska Native, Non-Hispanic

Town of Los Altos Hills Housing Element
Housing Needs Assessment 48
in the technology industry, leading to an increased demand for housing in the region.

Housing development has not kept pace with population growth and demographic changes.

A report from the Center for Continuing Study of the California Economy and the Silicon Valley Community Foundation noted that between 2007 and 2016 Silicon Valley added 344,149 residents. 69,503 housing units of the estimated 175,000 needed to keep up with demographic change were built. 3F3F
4 As economic opportunity increases in the area, so does the demand for housing, and the higher demand for housing combined with low housing stock creates high housing prices and greater need for more housing units in the region.

While Los Altos Hills is zoned entirely for low-density residential, agricultural, and institutional uses, its location in Silicon Valley and proximity to major employment centers greatly impacts the demand for increased housing in the Town. There is a large business park and employment center in Palo Alto, directly adjacent to the Town. This includes the VMware corporate campus, the VA Palo Alto medical center, Hewlett Packard, the Nest corporate campus, and many other office buildings and large employers, including Stanford University. Though not located within the borders of Los Altos Hills, the Town is inextricably linked to these high-tech employment centers; close proximity to these well-paying jobs increases a demand for housing in Los Altos Hills and the greater Silicon Valley region.

Table 8 shows the labor force and unemployment rate in 2010, 2014 and 2019 for Los Altos Hills. From 2010 to 2014 the unemployment rate increased by 1.4 percent, but by 2019 it had decreased to 3.2 percent, lower than the rate of 3.4 percent in 2010. The unemployment rate for Los Altos Hills in 2019 was 0.3 percent lower than the County’s unemployment rate of 3.5 percent (ACS 2019). The unemployment rate of the Town of Los Altos Hills is comparable to the County, and both are slightly lower than a healthy unemployment rate of 4–5 percent; the unemployment rate does not indicate an increased need of assistance for unemployed persons.

Table 8: Employment Trends, Los Altos Hills
Year Labor Force Employed Unemployed Unemployment Rate
2010 3,241 3,132 109 3.4%
2014 3,373 3,211 162 4.8%
2019 3,617 3,503 114 3.2%
Source: ACS 5-Year Estimates Data, 2010, 2014, 2019.
4Silicon Valley’s Housing Crisis. Silicon Valley Community Foundation and the Center for Continuing Study of the California Economy. 2017.
https://www.siliconvalleycf.org/sites/default/files/publications/housing-brief-spring.pdf

Town of Los Altos Hills Housing Element
Housing Needs Assessment 49
Figure 3 compares the employment by industry for Los Altos Hills, Santa Clara County, and the Bay Area region. Los Altos Hills has the largest portion of its population (40 percent) employed in the financial and professional services industry, follow by health and education services (23 percent) and manufacturing, wholesale, and transportation (18 percent).

Compared to the County and region, Los Altos Hills has fewer people employed in the retail, construction, and health and education services industries. It has a larger portion of the population employed in financial and professional services than both Santa Clara County and the Bay Area by 14 percent. Los Altos Hills residents have more jobs in industries that tend to be higher paying, which correlates with income levels and housing options in the Town.

Figure 3: Regional Employment by Industry
Source: ACS 5-Year Estimates Data, 2019, Table C24030.

Household Characteristics
The US Census Bureau defines a household as all persons living in a single housing unit, whether or not they are related. A household can be one person, a single family, multiple 3% 5% 6%
40%
26% 26%
23%
27% 30%
6%
5% 4%
18%
21% 17%
5% 8% 9%
6% 6% 8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Los Altos Hills Santa Clara County Bay Area
Share of Employed Residents
Construction Financial & Professional Services
Health & Educational Services Information
Manufacturing, Wholesale & Transportation Retail
Other

Town of Los Altos Hills Housing Element
Housing Needs Assessment 50
families, or any group of related or unrelated persons. The US Census Bureau defines a family as related persons living within a single housing unit. An analysis of household characteristics as they relate to housing needs includes data on household size, income, and housing units.

The number of households in Los Altos Hills has been increasing since 2000, as shown in Table 9. US Census data from 2019 estimates there were 3,016 households in Los Altos Hills.

From 2000 to 2010, the number of households increased by 89, a 3.2 percent increase. The number of households from 2010 to 2019 increased by 187, a 6.6 percent increase—over double the rate from 2010. This rate is similar to that seen in Santa Clara County (6.0 percent) during the same time period. Compared to the entire state of California, which saw an overall

3.7 percent increase in households between 2010 and 2019, Los Altos Hills and Santa Clara County each had a larger proportional increase in households—6.6 percent and 6.0 percent, respectively—over the same time frame.

Table 9: Number of Households, 2000–2019
Area 2000 2010 2019 % Increase
2000-2010
% Increase
2010-2019
Los Altos Hills 2,740 2,829 3,016 3.2% 6.6%
Santa Clara County 565,863 604,204 640,215 6.8% 6.0%
California 11,502,870 12,577,498 13,044,266 9.3% 3.7%
Source: US Census 2000, 2010, 2019.

Household size helps indicate the type of units needed in a jurisdiction. The larger the household size, the larger the unit needed to comfortably live without risk of overcrowding.

Table 10 and Figure 4 provide information on the household size distribution in the region.

In 2020, the average household size in Los Altos Hills was 2.8 persons, slightly smaller than the County and state average of 3.0 persons per household.

Table 10: Regional Average Household Size
Geography 2010 2020
Los Altos Hills 2.7 2.8
Santa Clara County 2.9 3.0
California 2.9 3.0
Source: ACS 5-Year Estimates Data, 2019, Table B25119.

Town of Los Altos Hills Housing Element
Housing Needs Assessment 51
The composition of households by size for Los Altos Hills, Santa Clara County, and the Bay Area are largely similar, as shown in Figure 4. In Los Altos Hills, 38 percent of households are two-person households and 34 percent of households are three- to four-person households.

Los Altos Hills has a slightly higher number of two-person households than Santa Clara County, which stands at 31 percent. It also has slightly lower proportions of one-person households and five or more person households, both by 2 percent. The household size distribution in Los Altos Hills indicates that a range of unit sizes are needed in the Town to meet the needs of different household sizes.

Figure 4: Households by Size
Source: ACS 5-Year Estimates Data, 2019, Table B11016.

Of the 3,016 estimated households in Los Altos Hills, 91.5 percent are owner occupied and

8.5 percent are renter occupied, based on ACS estimates in 2019. This is significantly different than the rate of Santa Clara County, in which 46.85 percent of the units are owner occupied and 43.2 percent of units are renter occupied. This discrepancy stems from zoning practices in Los Altos Hills that prioritize single-family home development and not multifamily units. Additionally, the low proportion of rental units indicate a need for new rental options in the Town to better address the local and regional needs. 18% 20% 25%
38% 31%
32%
34% 37% 33%
10% 12% 11%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Los Altos Hills Santa Clara County Bay Area
Percent of Households
Geography
1-Person Household 2-Person Household
3-4-Person Household 5-Person or More Household

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As shown in Table 11, the most common household size in Los Altos Hills is a two-person household, followed by four-person households and then one-person households. Just over 35 percent of renter-occupied households are one-person households, compared to about 16 percent of owner-occupied households.

Table 11: Household Size by Tenure, 2019
Group
Owner Occupied Renter Occupied Total
Units % Units % Units %
1 Person Household 441 14.6% 91 3.0% 532 17.6%
2 Person Household 1,116 37.0% 36 1.2% 1,152 38.2%
3 Person Household 416 13.8% 15 0.5% 431 14.3%
4 Person Household 552 18.3% 50 1.7% 602 20.0%
5 Or More Person Household 236 7.8% 63 2.1% 299 9.9%
Totals 2,761 91.5% 255 8.5% 3,016 100%
Source: ACS 5-Year Estimates Data, 2019, Table B25009.

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Table 12 displays the household income level by tenure for the Town of Los Altos Hills and Santa Clara County. The HUD HAMFI is for the San Jose/Sunnyvale/Santa Clara metropolitan statistical area. Just under 83 percent of households in Los Altos Hills are above the median income in the area, compared to only 58 percent of households in Santa Clara County. As such, Santa Clara County has a larger percentage of the population that is below the median income than in the town. Since over 50 percent of the County is above the median income, the County as a whole has a smaller percentage of the population that is below the median income than the metropolitan area.

Table 12: Household Income Level by Tenure, 2018
Group Owner Occupied Renter Occupied Total
Count % Count % Count %
Los Altos Hills
Less than or equal to 30% of HAMFI 115 3.8% 20 0.7% 135 4.4% Greater than 30% but less than or
equal to 50% of HAMFI 50 1.6% 35 1.1% 85 2.8%
Greater than 50% but less than or
equal to 80% of HAMFI 135 4.4% 30 1.0% 165 5.4%
Greater than 80% but less than or
equal to 100% of HAMFI 145 4.7% 0 0% 145 4.7%
Greater than 100% of HAMFI 2,350 76.8% 180 5.9% 2,530 82.7% Total 2,795 91.3% 265 8.7% 3,060 100%
Santa Clara County
Less than or equal to 30% of HAMFI 27,980 4.4% 55,360 8.7% 83,340 13.1% Greater than 30% but less than or
equal to 50% of HAMFI 27,635 4.3% 35,920 5.7% 63,555 10.0% Greater than 50% but less than or
equal to 80% of HAMFI 32,440 5.1% 34,260 5.4% 66,700 10.5% Greater than 80% but less than or
equal to 100% of HAMFI 28,655 4.5% 24,640 3.9% 53,295 8.4% Greater than 100% of HAMFI 243,955 38.4% 124,680 19.6% 368,635 58.0% Total 360,665 56.8% 274,860 43.2% 635,525 100%
Source: 2014-2018 HUD CHAS data.

The median income for both owner- and renter-occupied households in the Town of Los Altos Hills is $250,001, according to the census, as shown in Table 13. The actual median income may be higher, as any median incomes above $250,001 are coded as $250,001 by the census. This significantly higher than the median income of Santa Clara County of $133,076. A high median income in Los Altos Hills is reflected in high housing costs and

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prevalence of single-family homes in the Town. It also indicates that lower-income families cannot afford to live in Los Altos Hills. Additional housing options in the Town are necessary to fully meet the needs of the community and region.

Table 13: Median Household Income by Tenure
Jurisdiction 2019 Median Income
Town of Los Altos Hills $250,001
Owner-Occupied Households $250,001
Renter-Occupied Households $250,001
Santa Clara County $133,076
Owner-Occupied Households $167,124
Renter-Occupied Households $97,280
Source: ACS Estimates Data, 2019, Table B25119.

Housing Stock Characteristics
As of 2019, Los Altos Hills has 3,324 housing units, an increase of 428, 14.7 percent, from 2000. Los Altos Hills comprises just 0.5 percent of the total housing stock in Santa Clara County. Table 14 illustrates the change in the number of housing units in Los Altos Hills and Santa Clara County from 2000 to 2019. The Town of Los Altos Hills saw a 9.6 percent increase in housing stock from 2000 to 2010, similar to the 9.1 percent rate of Santa Clara County.

Both the Town and the County had a smaller percentage increase in housing stock from 2010 to 2019, at 4.5 percent and 6.4 percent, respectively.

Table 14: Change in Number of Housing Units, 2000–2019
Year Los Altos
Hills
%
change
Santa Clara
County
%
change
Los Altos Hills as Percentage of Total
Santa Clara County Units
2000 2,896 - 579,329 - 0.5%
2010 3,173 9.6% 631,920 9.1% 0.5%
2019 3,324 4.5% 672,495 6.4% 0.5%
Source: US Census 2000 SF3, H1, US Census 2010 SF1, H1, and Department of Finance Table E-5, 2019.

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Table 15 displays the number and type of housing units in Los Altos Hills in 2010 and 2020.

In 2020, almost the entire housing stock in the Town of Los Altos Hills is single-family detached homes (98.2 percent). This is significantly higher than the County rate of 51.7 percent. This estimate includes ADUs. In 2014 there were at least 193 ADUs in the Town and over 100 have been built since. ADUs make up almost 10 percent of the housing stock in the Town. 0.5 percent of the housing stock in Los Altos Hills is multifamily, compared to 35.8 percent of Santa Clara County housing stock. In Los Altos Hills, 0.8 percent of the housing stock is mobile homes and 0.4 percent is attached single-family units. The Town of Los Altos Hills does not have a varied housing stock. Developing a varied housing stock that includes multifamily development would help provide for a variety of needs for different income levels.

Table 15: Type of Housing Units
Building Type
2010 2020
Units % Units %
Town of Los Altos Hills
Single-Family Home: Attached 10 0.3% 13 0.4%
Single-Family Home: Detached 2,950 98.3% 3,124 98.2%
Multifamily 14 0.5% 16 0.5%
Mobile Homes* 27 0.9% 27 0.8%
Totals 3,001 100% 3,180 100%
Santa Clara County
Single-Family: Attached 61,517 9.7% 66,146 9.7%
Single-Family: Detached 344,586 54.5% 351,726 51.7%
Multifamily 206,779 32.7% 243,502 35.8%
Mobile Homes* 19,038 3.0% 18,924 2.8%
Total Housing Units 631,920 100% 680,298 100%
Source: California Department of Finance, E-5 series.
*The term Mobile Home refers to “HUD-code” Manufactured homes

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Housing Costs
Costs of housing directly relates to housing need, as high costs can indicate a shortage in housing stock for low incomes households. High housing costs price lower-income households out of the ability to live in an area or may result in an excessive cost burden to the household. The average monthly rent by unit size in Los Altos Hills is shown in Table 16.

The monthly rent in Los Altos Hills is not affordable to lower-income and most moderateincome households. HCD estimates that the maximum monthly gross rent for a household of four at the AMI ($151,300) is $3,783, which is just $23 more than the average monthly rent of a one-bedroom unit in Los Altos Hills. However, only 1.1 percent, about 32, of units in the Town have only one bedroom. It is important to note that there are already very few rental units in the Town, and the small sample size of rental units may be influencing rent estimates.

Table 16: Average Monthly Rent by Unit Size, 2021
Unit Size Average Monthly Rent
One Bedroom $3,750
Two Bedroom $5,495
Three Bedroom $8,950
Four Bedroom $8,950
Source: Zumper, 2021.

In 2021, the Town conducted an ADU survey that was distributed to all property owners. The survey provided information on ADU characteristics including size and rent. Figure 5 shows the rent charged for ADUs by number of bedrooms. Of the 50 units where rental data was provided, 23 were occupied by a family member, relative, or other individual with no rent charged. Among the 27 units where rent was charged, 12 units had rent between $1,501 and $2,400. Only 5 ADUs had rent greater than $3,600. The ADU survey indicates that many ADUs are affordable to moderate and lower income households based on the area median income. This includes all of the studio apartments, 83 percent of one bedroom units, and almost 93 percent of two bedroom units.

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Figure 5: ADU Rent by Number of Bedrooms
Source: Los Altos Hills ADU Survey, 2021
Table 17 displays the affordable and fair market rent for low-income households in the San Jose-Sunnyvale-Santa Clara HUD fair market rent area. The estimated fair market rents for these units are much lower than the average monthly rents shown in Table 16, suggesting that lower-income families are priced out of rental units in the Town. Calculations for the table are provided from the National Low Income Housing Coalition to determine what income is needed to afford fair market rent for a unit without spending greater than 30 percent of income on housing.

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Table 17: Affordable and Fair Market Rent for Low-Income Households, 2021 Unit Size Income Needed to
Afford (hourly)
Income Needed
to Afford
(annual)
Fair Market Rent
Zero Bedroom $42.85 $89,120 $2,228
One Bedroom $49.19 $102,320 $2,558
Two Bedroom $58.67 $122,040 $3,051
Three Bedroom $76.62 $159,360 $3,984
Four Bedroom $88.33 $183,720 $4,593
Source: National Low Income Housing Coalition, Out of Reach 2021: California.

Table 18 shows gross rent as a percentage of household income in 2019. The majority of renters in Los Altos Hills do not experience a cost burden; however, most of those that do experience a severe cost burden. Twenty percent of renters pay more than 50 percent of their household income toward rent. Over half of renters (54.1 percent) pay less than 20 percent of their income towards rent.

Table 18: Gross Rent as a Percentage of Household Income, 2019 Percent of Household Income Number of Households Percent of Households
Less than 10 percent 50 19.6%
10 to 14.9 percent 67 26.3%
15 to 19.9 percent 21 8.2%
20 to 24.9 percent 43 16.9%
25 to 29.9 percent 0 0%
30 to 34.9 percent 7 2.7%
35 to 39.9 percent 0 0%
40 to 49.9 percent 0 0%
50 percent or more 51 20.0%
Not computed 16 6.3%
Total 255 100%
Source: ACS 5-Year Estimates Data, 2019, Table B25070.

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The median home sale price from 2001 to 2020 for Los Altos Hills, Santa Clara County, and the Bay Area region is shown in Figure 6. The Town of Los Altos Hills has a median home price significantly higher than the County and region. The median home price in Los Altos Hills continues to increase at a much faster rate than the County and Bay Area region, especially since 2011. As of December 2020, the median home sale price in Los Altos Hills was $4,591,905, over $3.3 million higher than that of the County and Bay Area region, which were at $1,290,977 and $1,077,233, respectively.

Figure 6: Median Sales Price Over Time
Source: Zillow.com, 2021.

Median sales prices across California increased rapidly during 2021, partially due to effects from the COVID-19 pandemic. After spring 2020, housing prices increased rapidly across the state in 2021. Zillow market analysis data shows a 20.5 percent increase in the typical home value from January 2021 to January 2022. 4F4F
5 5 Zillow California Market Overview, January 2022. https://www.zillow.com/ca/home-values/ $-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
20012002200320042005200620072008200920102011201220132014201520162017201820192020 Median Sales Price
Year
Bay Area Santa Clara County Los Altos Hills

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Table 19 displays the increase in median sales price from December 2020 to December 2021 in Los Altos Hills and surrounding jurisdictions. As of December 2021, the median home sale price in Los Altos Hills was $5,193,377. Los Altos Hills experienced a 12.2 percent increase in median sales price from December 2020 to December 2021. Los Altos Hills had the highest median home sales price of jurisdictions in Santa Clara County by over one million dollars. It is followed by Los Altos with a median home sales price at more than four million dollars, and by Monte Sereno, Palo Alto, and Saratoga, with median prices over three million dollars.

The high home sales prices in Los Altos Hills are reflective of its semi-rural nature and large, single-family homes. Many households in the region are priced out of living in Los Altos Hills due to its lack of housing affordable to them.

Table 19: Median Sales Prices, Santa Clara County
Jurisdiction December 2020 December 2021 % Change
Los Altos Hills $4,630,000 $5,193,377 12.2%
Santa Clara $1,400,000 $1,590,610 13.6%
San Jose $1,140,000 $1,361,064 19.4%
Campbell $1,440,000 $1,682,148 16.8%
Cupertino $2,370,000 $2,817,172 18.9%
Gilroy $848,000 $1,017,696 20.0%
Los Altos $3,450,000 $4,039,260 17.1%
Los Gatos $2,210,000 $2,605,981 17.9%
Milpitas $1,150,000 $1,352,271 17.6%
Monte Sereno $3,390,000 $3,937,619 16.2%
Morgan Hill $1,070,000 $1,286,127 20.2%
Mountain View $1,860,000 $2,021,703 8.7%
Palo Alto $3,230,000 $3,645,033 12.8%
Saratoga $3,060,000 $3,641,636 19.0%
Sunnyvale $1,750,000 $2,020,370 15.4%
Santa Clara County $1,320,000 $1,541,339 16.8%
Source: Zillow Housing Market Data, 2021.

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Vacancy Rates
Vacancy rates are indicators of housing supply and demand, and can reflect the degree of housing choice that is available. Higher vacancy rates indicate downward price pressure. Low vacancy rates influence greater upward price pressures. Low vacancy rates usually indicate high demand and/or low supply conditions in the housing market. Too low a vacancy rate can force prices up, making it more difficult for lower- and moderate-income households to find housing, and is naturally related to the number of available housing units. The “healthy” vacancy rates for owner-occupied housing and renter-occupied housing differ. A healthy rental vacancy is around 7 to 8 percent, while a vacancy rate of 2 to 3 percent is considered healthy for owner-occupied housing. Table 20 estimates a 9.3 percent vacancy rate for Los Altos Hills. The high vacancy rate may be partially explained by vacant investment properties that are not actively used for housing.

Table 20: Occupancy Status, 2019
Occupancy Status Santa Clara County Percent Los Altos Hills Percent Occupied Housing Units 643,637 93.8% 3,016 90.7%
Vacant Housing Units 42,669 6.2% 308 9.3%
Total Housing Units 686,306 100% 3,324 100%
Source: ACS 5-Year Estimates Data, 2019.

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Housing Age and Condition
The age and condition of housing stock helps inform housing need by identifying groups in Los Altos Hills that may be experiencing housing problems or are living in unsafe conditions.

In general, housing that is 30 years or older may exhibit the need for repairs based on the useful life of materials. Housing over 50 years old is considered aged and is more likely to require major repairs in the near term. Older housing units require more maintenance and may cost more to upkeep than newer housing units. As shown in Table 21, the largest portion of the housing stock in Los Altos Hills, almost 40 percent, was built between 1960 and 1979.

Almost one-quarter (23.4 percent) of the housing stock was built between 1980 and 1999.

The age of the housing stock in Los Altos Hills may indicate some need for repair and rehabilitation of aging units. There is significant replacement housing of 20 to 25 homes every year, so many of the older homes have been demolished and replaced over the last 40 years. A windshield survey and conversations with code enforcement estimate that about one percent (30-40 housing units) of the housing stock is in need of some type of repair.

Despite the age of most housing in the Town, most housing is well maintained and in good condition.

Table 21: Year Housing Built
Year Built Number of Housing Units % of Units
Built 1939 Or Earlier 163 4.9%
Built 1940 To 1959 635 19.1%
Built 1960 To 1979 1,319 39.7%
Built 1980 To 1999 779 23.4%
Built 2000 To 2009 277 8.3%
Built 2010 Or Later 151 4.5%
Total 3,324 100%
Source: ACS 5-Year Estimates Data, 2019, Table B25034.

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Housing tenure by date of occupancy is listed in Table 22, which shows when households moved into their housing unit. Almost one-third of households in Los Altos Hills moved into their unit in 1989 or earlier. Only 11.9 percent of the households began occupancy of their current home in 2015 or later. There is low housing turnover rate in the Town.

Table 22: Housing Tenure by Date of Occupancy, 2019
Move In Year Owner
Occupied
% of
Units
Renter
Occupied
% of
Units Total % of Units
Moved In 1989 Or Earlier 971 32.2% 0 0.0% 971 32.2%
Moved In 1990 To 1999 545 18.1% 11 0.4% 556 18.5%
Moved In 2000 To 2009 577 19.1% 24 0.8% 601 19.9%
Moved In 2010 To 2014 407 13.5% 121 4.0% 528 17.5%
Moved In 2015 To 2016 163 5.4% 49 1.6% 212 7.0%
Moved In 2017 Or Later 98 3.2% 50 1.7% 148 4.9%
Total 2,761 91.5% 255 8.5% 3,016 100%
Source: ACS 5-Year Estimates Data, 2019, Table B25038.

Housing is considered substandard when conditions are found to be below the minimum standard of living defined in the California Health and Safety Code. Substandard housing units include those in need of repair and/or replacement. Households living in substandard conditions are considered to be in need of housing assistance, even if they are not seeking alternative housing arrangements, due to threat to health and safety.

In addition to structural deficiencies and standards, the lack of infrastructure and utilities often serves as an indicator for substandard conditions. The 2019 ACS estimated that there are no recorded housing units in Los Altos Hills that lack a complete kitchen or plumbing. An estimated 30–40 housing units are in need of significant repair or replacement per conversations with code enforcement staff. When unrecorded substandard units are found, the Town aggressively use code enforcement to correct life/safety violations and legalize the units.

Overpayment
Overpayment is defined as households paying more than 30 percent of their gross income on housing-related expenses, including rent or mortgage payments and utilities. Severe overpayment occurs when households pay 50 percent or more of their gross income for housing. Households paying greater than 30 percent of their gross income on housingrelated expenses are considered to be cost burdened and those paying greater than 50 percent of their income toward housing-related costs are considered to be severely cost burdened. Higher costs for housing may contribute to households having a limited ability to cover other everyday living expenses. The impact of housing costs is more apparent for extremely low-, very low-, and low-income households, especially renter households.

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Table 23 shows the overpayment by tenure and income group for the Town of Los Altos Hills and Santa Clara County. In Los Altos Hills, 23.4 percent of owner households are experiencing some form of overpayment, which is a similar rate to Santa Clara County, at

21.4; however, there is a higher percentage of owner households experiencing severe overpayment (10.6 percent) in Los Altos Hills than in the County (6.5 percent). The rate of renter households experiencing overpayment is 20.7 percent; all extremely low-income and very low-income rental households in Los Altos Hills are experiencing severe cost burden.

This may not take into account instances where no rent is charged for ADUs. A 2021 survey of ADUs in the Town noted that 23 ADUs had no rent charged. High rates of cost burden in Los Altos Hills and Santa Clara County are reflective of a housing shortage and high housing costs, illustrating the need for additional housing units, especially for lower-income households.

Table 23: Overpayment by Tenure, 2018
Household
Income
Range
Households Percentage of Income Spent on Housing
Number
% (of total
households)
Overpayment
(>30% income on
housing)
Severe Overpayment
(>50% income on
housing)
Number % Number %
Town of Los Altos Hills
Owner Households
Less than or equal to
30% of HAMFI 115 3.8% 10 0.3% 80 2.6%
Greater than 30% but
less than or equal to
50% of HAMFI
50 1.6% 10 0.3% 15 0.5%
Greater than 50% but
less than or equal to
80% of HAMFI
135 4.4% 10 0.3% 80 2.6%
Greater than 80% but
less than or equal to
100% of HAMFI
145 4.7% 70 2.3% 35 1.1%
Greater than 100% of
HAMFI 2350 76.8% 230 7.5% 115 3.8%
Total 2,795 91.3% 330 10.8% 325 10.6%
Renter Households
Less than or equal to
30% of HAMFI 20 0.7% 0 0.0% 20 0.7%
Greater than 30% but
less than or equal to
50% of HAMFI
35 1.1% 0 0.0% 35 1.1%

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Household
Income
Range
Households Percentage of Income Spent on Housing
Number
% (of total
households)
Overpayment
(>30% income on
housing)
Severe Overpayment
(>50% income on
housing)
Number % Number %
Greater than 50% but
less than or equal to
80% of HAMFI
30 1.0% 0 0.0% 0 0.0%
Greater than 80% but
less than or equal to
100% of HAMFI
0 0.0% 0 0.0% 0 0.0%
Greater than 100% of
HAMFI 180 5.9% 0 0.0% 0 0.0%
Total 265 8.7% 0 0.0% 55 1.8%
Santa Clara County
Owner Households
Less than or equal to
30% of HAMFI 25,960 4.1% 20,765 3.3% 16,670 2.6%
Greater than 30% but
less than or equal to
50% of HAMFI
27,625 4.4% 15,370 2.4% 9,725 1.5%
Greater than 50% but
less than or equal to
80% of HAMFI
32,435 5.2% 15,680 2.5% 6,870 1.1%
Greater than 80% but
less than or equal to
100% of HAMFI
28,655 4.6% 11,500 1.8% 3,285 0.5%
Greater than 100% of
HAMFI 243,950 38.8% 35,110 5.6% 4,350 0.7%
Total 358,625 57.0% 98,425 15.6% 40,900 6.5%
Renter Households
Less than or equal to
30% of HAMFI 51,035 8.1% 45,275 7.2% 35,590 5.7%
Greater than 30% but
less than or equal to
50% of HAMFI
35,940 5.7% 29,750 4.7% 15,250 2.4%
Greater than 50% but
less than or equal to
80% of HAMFI
34,270 5.4% 21,565 3.4% 5,615 0.9%
Greater than 80% but
less than or equal to
100% of HAMFI
24,635 3.9% 10,400 1.7% 940 0.1%

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Household
Income
Range
Households Percentage of Income Spent on Housing
Number
% (of total
households)
Overpayment
(>30% income on
housing)
Severe Overpayment
(>50% income on
housing)
Number % Number %
Greater than 100% of
HAMFI 124,685 19.8% 11,990 1.9% 225 0.0%
Total 270,565 43.0% 118,980 18.9% 57,620 9.2%
Source: 2014-2018 HUD CHAS data.

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Overcrowding
An overcrowded housing unit is defined by the US Census Bureau as a housing unit occupied by more than one person per room (excluding bathrooms, kitchens, hallways, and closet space). Occupancy by more than 1.5 persons per room constitutes severe overcrowding.

Overcrowding can affect public facilities and services, reduce the quality of the physical environment, and create conditions that contribute to deterioration of the housing stock.

Additionally, high rates of overcrowding can indicate that a community does not have an adequate supply of affordable housing and/or variety of suitable housing units to meet the needs of the community.

There are very low rates of overcrowding in Los Altos Hills. Overcrowding by tenure is shown for Los Altos Hills and Santa Clara County in Table 24. There are no overcrowded owneroccupied units in the Town, which is below the rate of 1.6 percent of units in the County. 11 renter-occupied units are overcrowded, constituting 0.4 percent of units, lower than the 39,934 rental units that are overcrowded in the County, constituting 6.2 percent of units.

These units all have greater than 1.5 occupants per room and are considered to be severely overcrowded. Low overcrowding rates may correlate with high incomes, as well as larger homes common in the town.

Table 24: Overcrowding by Tenure
Persons per Room
Owners Renters Total
Overcrowded
Households
% of
Total
Overcrowded
Households
% of
Total
Overcrowded
Households
% of
Total
Los Altos Hills

1.01 to 1.50 0 0% 0 0% 0 0%
>1.50 0 0% 11 0.4% 11 0.4%
Total Overcrowded 0 0% 11 0.4% 11 0.4%
Santa Clara County

1.01 to 1.50 7,526 1.2% 21,951 3.4% 29,477 4.6%
>1.50 2,340 0.4% 17,983 2.8% 20,323 3.2%
Total Overcrowded 9,866 1.6% 39,934 6.2% 49,800 7.8%
Source: ACS 5-Year Estimates Data, 2019, Table B25014.

Assisted Housing Units at Risk of Converting to Market-Rate Rents Jurisdictions are required by state housing element law to analyze government-assisted housing that is eligible to convert from low-income to market-rate housing over the next 10 years. State law identifies housing assistance as a rental subsidy, mortgage subsidy, or mortgage insurance to an assisted housing development. Government-assisted housing

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might convert to market-rate housing for a number of reasons, including expiring subsidies, mortgage repayments, or expiration of affordability restrictions.

The Town of Los Altos Hills does not currently have any units at risk of conversion that meet these standards and the Town of Los Altos Hills has no affordable housing units that are deed restricted.

There are affordable units in the Town of Los Altos Hills in the form of accessory dwelling units (ADUs); however, none of the ADUs are deed restricted. Program A-7, ADU Tracking and Monitoring, Program B-6, ADU Ordinance Update to Meet State Law, and Program G-2, ADU Education, promote keeping these existing ADUs affordable and encourage the further development of ADUs.

Table 25: Units at Risk of Converting to Market Rate
Geography Low Moderate High Very
High
Total Assisted Units in
Database
Los Altos Hills 0 0 0 0 0
Santa Clara County 28,001 1,471 422 270 30,164
Bay Area 110,177 3,375 1,854 1,053 116,459
Source: Low-Income Housing Tax Credit (LIHTC) Database.

Qualified Entities
Under Government Code Section 65863.11, owners of federally assisted projects must provide a “Notice of Opportunity to Submit an Offer to Purchase” to qualified entities at least one year before the sale or expiration of use restrictions. Such qualified entities have first right of refusal for acquiring at-risk units. Qualified entities are nonprofit or for-profit organizations with the legal and managerial capacity to acquire and manage at-risk properties that agree to maintain the long-term affordability of projects. As a part of the approval process of new affordable units, the Town will make it clear that the extended noticing applies to the projects.

Though Los Altos Hills does not have any units that are at risk of converting to market rate, the following is a list of qualified entities from HCD for Santa Clara County that could potentially acquire and manage properties if any were to be at risk of converting to market rate in the future.
▪ Cambrian Center, Inc.
▪ Charities Housing Development Corp.
▪ Palo Alto Senior Housing Project, Inc.
▪ Mid-Peninsula Housing Coalition
▪ Affordable Housing Foundation

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▪ Palo Alto Housing Corp
▪ South County Housing, Inc
▪ Satellite Housing Inc.
▪ ROEM Development Corporation
▪ Silicon Valley at Home
▪ L + M Fund Management LLC
Replacement Costs
The Town of Los Altos Hills does not have any units that are at risk of converting to market rate during the planning period. This section provides a sample estimate of the current cost it would take to replace assisted units at risk of converting to market rate housing in the region.

The California Tax Credit Allocation Committee’s 2020 report provides estimates and data on the cost of building assisted units. It estimates that the average cost of an assisted unit in the State of California is $439,827. 5F5F
6 The estimated cost for units in Santa Clara County is higher than the state. Isolating data from Santa Clara County results in an average unit cost of $607,463.

Table 26 summarizes the estimated replacement costs per unit using construction cost estimates from the UC Berkeley Terner Center’s Construction Cost Index and average unit sizes in the Town of Los Altos Hills from ApartmentFinder. Combined, they provide an estimate for replacement costs by unit size specific to Los Altos Hills. It ranges from $292,500 for a one-bedroom unit to $507,000 for a three-bedroom unit.

Table 26: Replacement Cost
Unit Size Construction Cost
per Square Foot Average Square Foot/ Unit Replacement Cost per Unit 1 bedroom $390 750 $292,500
2 bedrooms $390 1,050 $409,500
3 bedrooms $390 1,300 $507,000
Source: 2018 UC Berkeley Terner Center Construction Cost Index, ApartmentFinder 6 California Tax Credit Allocation Committee, 2020 Annual Report. https://www.treasurer.ca.gov/CTCAC/2020/annualreport/2020-TCAC.pdf

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Special Housing Needs
Some populations have special needs when it comes to housing, including accessibility requirements, size, and proximity to employment. The groups that generally have these special needs are the elderly, people with a disability, people experiencing homelessness, farmworkers, large households, female-headed households, and extremely low-income households. Identifying the prevalence of these populations within the Town, and their special needs, guides the creation of programs and type of housing development. People often belong to more than one of these groups. Table 27 provides an overview of the presence of special needs populations within the Town.

Table 27: Overview of Households with Special Needs, 2018 Special Needs Group # of People % of Population
Persons with a Disability 512 6.0%
Persons Experiencing Homelessness 2 0.1%
Farmworkers 5 0.1%
Special Needs Group # of Households % of Households
Householders Age 65+ 1,328 44.0%
Large Households 299 9.9%
Female-Headed Households 79 2.6%
Extremely Low Income Households 165 5.3%
Source: 2014-2018 HUD CHAS data, ACS 5-Year Data Estimates, 2019 There are no households in Los Altos Hills recorded to be lacking plumbing or kitchen facilities. Despite not having housing problems typically prevalent in special needs populations, these populations still have disproportionate need for financial, medical, or other town support.

Table 28 shows the services currently providing support to the special needs populations.

Services for special needs populations include the joint Los Altos Hills and Los Altos Senior Commissions, Project Match, and support from the Daughters of Charity.

Table 28: Inventory of Services for Special Needs Populations Services/Programs Details
Los Altos Hills/Los Altos
Senior Commission
Provides a comprehensive guide on resources for seniors regarding accessibility, nutrition, education, housing, and more.

Project Match Offers assistance to Santa Clara County seniors in finding affordable housing.

Daughters of Charity Provides resources on homeless support, access to healthcare, and combatting food insecurity.

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Elderly Persons
As shown in Figure 1, the average age of Los Altos Hills’ residents is higher than the County average. The higher proportion of elderly residents in the Town indicates an increased need for programs and support for the elderly population, who typically present a need for more medical and financial support.

Elderly populations often live on a fixed income and have a substantial portion of their financial resources in non-liquid assets, such as property. These “house-rich, cash-poor” individuals represent a significant need. Table 29 reveals that the median income of the elderly population in Los Altos Hills is much lower than the average resident, despite making up such a large portion of the population.

Table 29: Median Household Income for Elderly Households Householder Age Town of Los Altos Hills
Median Income
Santa Clara County
Median Income
65 Years and
Older $186,625 $75,758
All Households $250,001 $133,076
Source: ACS Estimates Data, 2019.

In 2019, there were 1,328 elderly householders (65 years of age and older) in the Town of Los Altos Hills, representing 44 percent of the total householders, as shown in Table 30.

Elderly residents may have some challenges obtaining needs such as the provision of meals (due to mobility issues), transportation, and other typical senior services. These needs are now satisfied through a variety of programs operated and funded by the Town, Santa Clara County, and various social service agencies. These resources include Age-Friendly Design Elements that incorporate universal accessibility features, ongoing education programs at the community college, daily support calls from the hospital, insurance counseling, adult day care, continuing care and independent living facilities, transportation services, and more.

Table 30: Householders by Age
Los Altos Hills Santa Clara County
Householder Age Households Percent Households Percent
15-24 years 12 0.4% 15,468 2.4%
25-34 years 48 1.6% 107,194 16.8%
35-64 years 1,628 54.0% 381,415 59.7%
65-74 years 654 21.7% 74,305 11.6%
75 plus years 674 22.3% 61,833 9.7%
Total 3,016 100% 640,215 100%
Source: ACS 5-Year Estimates Data, 2019.

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Although many elderly persons can continue to live in their own homes, particularly if structural modifications are made to help them cope with the challenges that accompany aging, there will nevertheless be an increasing demand for specialized care facilities.

Between 2015 and 2022, the Town contributed $30,000 to the Community Services Agency for the provision of such services as emergency assistance, nutrition and hot meal programs, information and referral, and senior care management.

The elderly population makes up 74 percent of the disabled population in Los Altos Hills, with hearing difficulty, ambulatory difficulty, and independent living difficulty being prevalent in the aging community, as shown in Figure 7. It is found that most elderly residents live in a home of two or more and receive in-home care or shared living opportunities with family members, rather than living in a facility. Programs supported by the Town to aid the elderly population also specifically serve the disabled elderly population, specifically transportation services, Age Friendly Design Elements, and communication services.

Figure 7: Elderly Households with a Disability
Source: ACS 5-Year Estimates Data, 2019, Table B18102, Table B18103, Table B18104, Table B18105, Table B18106, Table B18107.

9.5%

6.7% 6.1%

3.6%

1.0% 0.2%
0%
2%
4%
6%
8%
10%
12%
With a hearing
difficulty
With an
ambulatory
difficulty
With an
independent
living difficulty
With a cognitive
difficulty
With a self-care
difficulty
With a vision
difficulty
Population with Disabilities

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Persons with Disabilities
Per Table 31, in Los Altos Hills, 512 individuals, or 6 percent of the population, has a disability, of which 381 are part of the elderly population.

Table 31: Population by Disability Status, 2019
Geography No Disability With a Disability
Los Altos Hills 7,993 94.0% 512 6.0%
Santa Clara County 1,763,431 92.0% 154,212 8.0%
Bay Area 6,919,762 90.4% 735,533 9.6%
Source: ACS 5-Year Estimates Data, 2019, Table B18101.

Hearing and ambulatory difficulties are the most prevalent disabilities in the Town, as shown in Figure 8. Household design and location may prevent those with an ambulatory difficulty from living in certain areas of the town, while those with hearing difficulties may have communication issues and need additional Town resources for community involvement and information comprehension. The Town has provided a resource with recommended accessibility features to include in-home development for an owner to show their architect. 6F6F 7 These Town-recommended features include:
▪ An accessible route of travel from the sidewalk or street to the primary entrance with graded surfaces and no steps to the entry;
▪ At least one accessible secondary access to the dwelling; ▪ Thirty-six-inch-wide doors with low threshold heights; ▪ Wide halls and an accessible travel route to the kitchen, bedroom, bathroom, and common rooms;
▪ Adequate work and floor space at appliances;
▪ Adequate maneuvering space in bathrooms; and
▪ Minimum or no thresholds in at least one shower with appropriate drainage as required by the Building Department.
7 Age Friendly Design Elements https://www.losaltoshills.ca.gov/DocumentCenter/View/95/AgeFriendly-Design-PDF

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Figure 8: Disability by Type
Source: ACS 5-Year Estimates Data, 2019, Table B18102, Table B18103, Table B18104, Table B18105, Table B18106, Table B18107.

Persons with Developmental Disabilities
According to the Centers for Disease Control and Prevention (CDC) and the California Department of Developmental Services, a developmental disability is defined as a physical, learning, language, or behavior impairment that has physical or mental effects at every stage of life. Developmental disabilities generally are present since childhood. For this reason, the quantity of those with a developmental disability does not increase with each age group as other disability types do. Symptoms of developmental disabilities may be included as disability types in Figure 8 above. According to the most recent data from the State of California Department of Developmental Services, as shown in Table 32, there are 26 individuals with developmental disabilities in the community, 13 of which are children under the age of 18. All currently live in the home of a parent, guardian, or other family member, not in a facility.

Table 32: Persons with Developmental Disabilities by Age Group Age Group Persons with Developmental Disabilities
Age 18+ 13
Age Under 18 13
Totals 26
Source: California Department of Developmental Services, Consumer Count by California ZIP Code and Age Group, 2020.

2.9%

2.2% 1.9% 1.8%

0.4% 0.3% 0%
1%
2%
3%
With a
hearing
difficulty
With an
ambulatory
difficulty
With an
independent
living
difficulty
With a
cognitive
difficulty
With a selfcare
difficulty
With a vision
difficulty
Proportion of Adult Population
Reporting Disability Type

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Farmworkers
Agricultural operations in Town are limited, as the only year round commercial agriculture operation is the Packard Foundation, which has almost 80 acres of active apricot orchards that are tended to by farmworkers. The few small farms, orchards, vineyards, and equestrian operations that do exist require only occasional maintenance and are usually contracted out to companies that provide those services. In addition, many of the properties that require extensive maintenance have caretakers who live on the property rent free or pay reduced rent.

The US Department of Agriculture conducts a Census of Agriculture every five years. Table 33 shows the 2017 estimates of farmworkers for Santa Clara County. As indicated, there were an estimated 4,175 farmworkers in the County working on 890 farms. Many of these farms are located in the southern areas of the County, further from the tech industry, in the regions further south than Los Altos Hills. The majority of farmworkers, almost 80 percent, work on farms with more than 10 employees. The 2007 US Department of Agriculture Census of Agriculture counted 5,589 farmworkers in the County. This yields a 25 percent decrease of farmworkers in the County from 2007 to 2017.

Table 33: Regional Number of Farmworkers and Farms
Farm /Worker Type Farmworkers Farms
Farm Size
Farms with less than 10 employees 847 293
Farms with 10 or more employees 3,328 66
Length of Employment of Workers
Workers working 150 days or more 2,418 -
Workers working less than 150 days 1,757 -
Source: 2017 Census of Agriculture, Table 7.

Large Households
Table 34 reveals that 9.9 percent of all households in Los Altos Hills contain five or more members. Despite having almost a tenth of the population living in a large household, the Town does not have a prevalent overcrowding issue, as over 35 percent of households have 5 or more bedrooms. While 9.9 percent of the Town’s households have five or more members, 12.4 percent of the County’s households are large, despite having less than 6 percent of homes having 5 or more bedrooms, making Los Altos Hills more conducive than the region as a whole for larger families.

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Table 34: Large Households by Tenure
Number of Persons in
Unit
Owner
Occupied %
Renter
Occupied % Total %
Los Altos Hills
Five 163 5.4% 43 1.4% 206 6.8%
Six 32 1.1% 20 0.7% 52 1.8%
Seven or more 41 1.4% 0 0% 41 1.4%
Total Large Households 236 7.9% 63 2.1% 299 9.9%
Santa Clara County
Five 26,406 4.1% 19,190 3% 45,596 7.1%
Six 10,802 1.7% 7,822 1.2% 18,624 2.9%
Seven or more 8,684 1.4% 6,650 1% 15,334 2.4%
Total Large Households 45,892 7.2% 33,662 5.2% 79,554 12.4% Source: ACS 5-Year Estimates Data, 2019 Table B25009.

Female-Headed Households
As shown in Table 35, there are 79 female-headed households in Los Altos Hills, constituting

2.6 percent of the total households in the community. Of these, only 34 have related children, or 1.1 percent of the total. The typical female-headed household is a property owner and resides in a single-family dwelling. A high number of single-parent households may indicate a need for subsidized day care or health care, but this population makes up a small amount of the Town’s total households.

Table 35: Female-Headed Households by Tenure
Household Type Owner
Occupied %
Renter
Occupied % Total % of Total Households
Female householder, no husband
present, with own children under 18 34 1.1% 0 0% 34 1.1% Female householder, no husband
present, without own children 45 1.5% 0 0% 45 1.5%
Total 79 2.6% 0 0% 79 2.6%
Source: ACS 5-Year Estimates Data, 2019 Table B25115.

Homeless Population
Santa Clara County conducts a biannual homeless census and survey to collect information on individuals and families sleeping in emergency shelters and transitional housing, as well as people sleeping on the streets, in cars, in abandoned properties, or in other places not meant for human habitation.

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The Town of Los Altos Hills was found to have two unsheltered individuals in this count, and no sheltered individuals, as shown in Table 36. The Community Services Agency provides help finding affordable housing, navigating community resources and programs, and paying for first month's housing costs for homeless individuals in Los Altos Hills. The Town has a much lower homeless population overall than the rest of the region.

Table 36: Homeless Population, 2019
Homeless Population Sheltered Unsheltered Total
Los Altos Hills 0 2 2
Campbell 0 74 74
Cupertino 0 159 159
Gilroy 359 345 704
Los Altos 0 76 76
Los Gatos 0 16 16
Milpitas 0 125 125
Monte Sereno 0 0 0
Morgan Hill 0 114 114
Mountain View 32 574 606
Palo Alto 14 299 313
San Jose 980 5,117 6,097
Santa Clara 62 264 326
Saratoga 0 10 10
Sunnyvale 147 477 624
Source: 2019 Santa Clara County Homeless Census and Survey.

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Extremely Low-Income Households
Extremely low-income households have an income less than 30 percent of the AMI. Table 37 shows the ranges for each income category based on the 2021 AMI of $151,300 for a household of four in Santa Clara County. Table 13 shows the 2019 median income for Los Altos Hills as $250,001, and the 2019 median income for the County as $133,076, making the median income in the Town almost double the AMI.

Table 37: Income Range by Area Median Income
Affordability Category % of County Median Income Range
Extremely Low Income 30% < $45,390
Very Low Income 31%–50% $45,391–$75,650
Low Income 51%–80% $75,651–$121,040
Moderate Income 81%–120% $121,041–$181,560
Above Moderate Income > 120% > $181,560
Source: California Department of Housing and Community Development, 2021.

Overpayment is when a household spends more than 30 percent of its monthly income on housing costs such as rent, mortgage, or utilities. Table 38 provides a summary of overpayment experienced by extremely low-income households in Los Altos Hills. All extremely low-income renter-occupied households experience overpayment, although this demographic only include 20 households. About 87 percent of owner-occupied extremely low-income households experience overpayment. Town-wide, about 21 percent of renteroccupied households and about 24 percent of owner-occupied households experience overpayment. A disproportionately higher percent of the extremely low-income population experiences overpayment.

The needs of extremely low-income households include multifamily rental housing and lower cost rental opportunities. The Town is including Programs A-1, A-2, A-5, and A-6 to create a multifamily overlay zone, rezone identified opportunity sites, allow by right approval for 20 percent affordable housing developments, establish minimum densities for lowincome development, and conduct an inclusionary zoning feasibility study respectively. The Town is also incentivizing the production of ADUs using methods discussed in Programs A-7 and G-2, including tracking and monitoring ADUs and encouraging existing ADUs to remain affordable.

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Table 38: Extremely Low-Income Households by Overpayment, 2018 Income Level Renters % Owners % Total %
Household Income < 30% HAMFI 20 15.5% 109 84.5% 129 100% With a Cost Burden > 30% 20 100% 95 87.2% 115 89.2%
With a Cost Burden 30-50% 0 0% 10 9.2% 10 7.8%
With a Cost Burden > 50% 20 100% 85 78.0% 105 81.4%
Source: 2014-2018 HUD CHAS data.

A household is considered overcrowded when there is more than one person per room, including living and dining rooms but excluding bathrooms and kitchens. Overcrowding can affect public facilities and services, reduce the quality of the physical environment, and create conditions that contribute to deterioration of the housing stock. Additionally, overcrowding can indicate that a community does not have an adequate supply of affordable housing and/or variety of suitable housing units to meet the needs of the community. As shown in Table 39, no extremely low-income households in Los Altos Hills experience overcrowding.

Table 39: Extremely Low-Income Households by Overcrowding, 2018 Income Level Renters % Owners % Total %
Household Income < 30% HAMFI 20 14.8% 115 85.2% 135 100% > 1 Person per Room 0 0% 0 0% 0 0%
1 – 1.5 Persons per Room 0 0% 0 0% 0 0%
> 1.5 Persons per Room 0 0% 0 0% 0 0%
Source: 2014-2018 HUD CHAS data.

Overall, there are very few extremely low-income households in Los Altos Hills, especially compared to the surrounding region. Specifically, 135 households, or about 4.5 percent of Los Altos Hills, is in the extremely low income level, as shown in Figure 9. Extremely lowincome households disproportionately need home-buying subsidies, single-room occupancy or shared housing, or rent subsidies such as housing choice vouchers.

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Figure 9: Households by Household Income Level
Source: 2013-2017 HUD CHAS data.
5%
4% 14% 15%
11% 11%
5%
11% 13%
6%
9% 9%
79%
55% 52%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Los Altos Hills Santa Clara County Bay Area
Percent of Households
0%-30% of AMI 31%-50% of AMI
51%-80% of AMI 81%-100% of AMI
Greater than 100% of AMI

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Summary of Housing Needs
An analysis of the needs in Los Altos Hills indicates an increased need for housing affordable to a variety of income levels, a lack of multifamily housing to address regional needs, and potential increased need for services and programs for the elderly population. Additionally, compared to Santa Clara County, the Town has much higher income levels and home values.

The Town is including a number of programs in response to the needs assessment and changing needs of the Town and region. This includes Program A-3, which assesses Townowned properties for their potential use as housing for special needs populations including elderly persons, lower-income households, and persons with disabilities. Program E-7 addresses the needs of elderly households by continuing to provide financial support for the Community Services Agency and Los Altos Senior Center which provide resources for senior residents in the Town. To encourage an increase of diversity in housing stock, the Town is including Program A-1 to create an overlay zone on parcels for multifamily uses at a density of at least 30 du/acre for at least 30 net developable acres and rezone identified opportunity sites for multifamily at a density of at least 20 du/ac .

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Affirmatively Furthering Fair Housing
Introduction
Assembly Bill (AB) 686 requires a jurisdiction’s housing element to provide an analysis of contributing factors to fair housing issues and to commit to actively and meaningfully affirmatively further fair housing. This analysis includes an assessment of fair housing enforcement, outreach activities, integration and segregation, racially and ethnically concentrated areas of affluence and poverty, disparities in access to opportunities, disproportionate housing needs, and any other contributing factors that serve as impediments to fair housing. The assessment also analyzes the extent to which the identified Regional Housing Needs Allocation (RHNA) sites affirmatively further fair housing.

Public Outreach
Outreach Activities
Community members were engaged and informed using the following methods:
▪ Online survey
▪ Stakeholder focus group interviews
▪ Joint City Council and Planning Commission workshops
▪ Web page on Town website
▪ Briefings at every Planning Commission and City Council meeting Organizations Contacted and Consulted
Organizations consulted or contacted included:
▪ Assistance League: Los Altos
▪ Associated Students Foothill College
▪ Bill Wilson Center
▪ Catholic Charities
▪ Charities Housing
▪ Community Services Agency
▪ Community Solutions
▪ Daughters of Charity of St. Vincent de Paul
▪ Destination: Home
▪ Foothill College

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Affirmatively Furthering Fair Housing 83
▪ Heart of the Valley
▪ HomeFirst
▪ Housing Choice
▪ Housing Industry Foundation
▪ League of Women Voters
▪ LIFEMOVES
▪ MidPen Housing
▪ Midtown Family Services
▪ Project Sentinel
▪ Rebuilding Together
▪ Senior Commission
▪ Silicon Valley FACES
▪ Silicon Valley Independent Living Center
▪ Silicon Valley Leadership Group
▪ Sunnyvale Community Services
▪ West Valley Community Services
Results and Analysis of Outreach
The Town of Los Altos Hills solicited community input throughout the Housing Element update planning process in a variety of ways. The following include the main strategies that were implemented to gather public participation and resulted in gathering the following summaries.

Housing Element Update – Town Website
The Town created the Housing Element update web page on the Town’s website (https://www.losaltoshills.ca.gov/537/Housing-Element-Update-2023-31) to provide:
▪ Background and information on the Housing Element process; ▪ Documents related to the Housing Element;
▪ Recordings of the public outreach presentations;
▪ Notification to the public of future events;
▪ Notification and interest sign-up lists and comment and question pathways for citizens to get involved in the process and to provide comments or questions to the project team or Town representatives.

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Stakeholder Interviews
The Town reached out to 31 individuals who represented service providers, nonprofits, and other stakeholders to participate in focus group interviews about the housing needs and issues in Los Altos Hills (13 community stakeholders and 18 local service providers). Out of the 31 individuals and groups that were contacted, 9 people participated in the focus groups (4 community members, 1 Town Senior Committee member, 1 faith-based institution representative, and 3 regional advocacy group representatives). Of those participants, the community members came from a wide range of age demographics, from young professionals to retirees. Included residents also spanned income demographics, from those that have owned property in Los Altos Hills for generations, to those who expressed their families could not afford to live in the Town had it not been for the availability of affordable ADUs. Three focus groups were held on April 18 at 12 p.m., April 19 at 6 p.m., and April 25 at 11 a.m. Hosting the focus group at three different times of the day provided a variety of times to accommodate different schedules. In a diligent effort to include all demographic segments of the Los Altos Hills community, the Housing Element team contacted 10 homeless interest groups, 8 housing and policy advocates, 6 representatives from local faith-based and educational institutions, 1 Town representative, 1 affordable housing developer and 5 homeowners and renters from various income levels. The stakeholders who participated discussed a variety of concerns, including:
▪ Removing constraints from the development process to allow some flexibility in the zoning or look to upzone in some areas of the Town.
▪ A lack of affordable housing options and how to incentivize multifamily and affordable development in the Town. A number of participants stated if it weren’t for affordable ADUs their children would not be able to afford to live in Los Altos Hills. ▪ Concern for individuals in the workforce who can’t afford to live and work in the same place.
▪ Protections and resources for individuals at risk of evictions due to affordability.

The participants had varying involvement and familiarity with Los Altos Hills but a consistent message of increased services and support as well as removal of regulatory restrictions for multifamily housing were the most prevalent issues covered.

Public Workshops
The Town held five virtual public workshops on January 19, 2022, March 24, 2022, June 20, 2022, October 3, 2022, and October 26, 2022, to present information on the Housing Element update and to gather public input. Members of the community participated in the workshops and provided feedback via live polling and questions and answers on the potential RHNA sites and the Housing Element update process.

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The public workshops were held at 6:00 p.m. on weekdays to accommodate a typical work schedule. Materials and video recordings of the presentations were made available on the Los Altos Hills Housing Element web page on the Town’s website for those who could not attend, or who wanted to review the materials and meetings at their leisure.

Housing Element Survey
Another component of the outreach effort was the Housing Element survey, posted on the Town’s website from February 2022 to the end of August 2022, and promoted through a myriad of channels for the furthest outreach. A total of 535 completed surveys were received, with 508 (95%) of respondents being a homeowner and 344 (65%) of respondents being white or Caucasian. Responses to the survey revealed concerns from residents regarding:
▪ Housing affordability,
▪ Lack of transit access and length of commuting times, and ▪ Lack of a variety of housing types.

Respondents also identified the groups who they believe have the greatest need for housing as middle-income workers (51%), seniors (40%), and small families (39%). The survey results show that despite the Town’s relative affluence, affordable housing options are a concern among the respondents.

Summary of Comments Received
In summary, the community engagement and input yielded the following themes and feedback:
▪ High Housing Costs/Costs of Living: Participants expressed that their children will not be able to afford homes in Los Altos Hills or the larger region. They also noted that people have high capital gains on their properties and are choosing to stay in their houses rather than selling them.
▪ Development Process: Participants expressed frustration in navigating the development process in terms of time, cost, and certain development requirements (story poles and restrictions on home expansions, Senate Bill 9 ordinance, contour line formula, and triggering public hearings).
▪ Accessory Dwelling Unit (ADU) Incentivization: Participants expressed frustration in their experience trying to build ADUs and recommended ADU incentivization strategies such as preapproved plans, fee waiving, elimination of the 800-square-foot maximum, searching for innovative funding sources, and community education. ▪ Challenge in Meeting RHNA: Participants discussed the difficulty in meeting the RHNA for the Town given the current zoning and development standards. Suggestions included looking at Town-owned sites, religious facilities, open space that is owned by

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the Town and not serving the community, upzoning part or all of the Town, encouraging housing at 3-6 dwelling units per acre (du/acre), and reducing the minimum lot size.

Assessment of Fair Housing
Town Overview
The Town of Los Altos Hills is largely consistent throughout in terms of fair housing issues.

This is likely due to the smaller size of the Town and the homogeneity of its land use. The Town was incorporated in 1956 as a semi-rural enclave of one-acre lots catering to equestrian oriented individuals and households. Silicon Valley, for which the surrounding area is now known, was not yet established as a cradle of technology. However, with the rise of Silicon Valley and the Town’s close proximity to Stanford University and the surrounding affluent communities of Palo Alto, Los Altos and Mountain View, the larger lots and seclusion of the Town made it a desirable location for business owners and other wealthy households.

The Town is made up almost entirely of two census tracts, as shown in Figure 10, and there is little variation between the two tracts. There are two small portions of the Town in the northwest and southwest that belong to other census tracts. Concerns raised by residents focused on frustration regarding the high cost of living and potential lack of affordable housing for families of current residents to return home to start their own families. Potential actions to address these concerns include creating an overlay zone to allow more affordable multifamily housing and rezoning of identified opportunity sites, as outlined in Program A-1, and incentivizing the production of ADUs using methods discussed in Programs A-7 and G2, including tracking and monitoring ADUs and encouraging existing ADUs to remain affordable.

The AFFH section also considers the effects that the RHNA sites may have on fair housing.

The sites inventory contains three clusters of sites. Sites were selected based on their access to infrastructure and suitability for multifamily housing. Two of the opportunity sites allwill have an overlay zone and the other will be rezoned to accommodate for multifamily housing at densities appropriate for low-income housing.

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Figure 10: Census Tracts and RHNA Sites
Source: AFFH Data Viewer
Two of the five census tracts that intersect Los Altos Hills make up the majority of the Town’s land area. These tracts are similar in demographic makeup to one another and the tracts in the surrounding region, as noted in Table 40. Los Altos Hills, as well as much of the surrounding region, is entirely in the Highest Resource Opportunity category. This is a relative ranking based on composites of environmental, economic, and education scores.

None of the three scores that determine the composite opportunity indicate notable discrepancy between the tracts that makeup the Town.

The median incomes of the two main tracts are negligibly different, at $213,056 and $224,219. Similarly, there is little discrepancy between these tracts in the percent of the population that is non-white, at 39 and 40 percent.

When evaluating the Town for segregation, the Town has a low dissimilarity index of 8.1.

Segregation at the Town level is much lower than 19.8 index for the Bay Area as a whole, despite the region still falling into the low segregation category. The location of the RHNA

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sites will not exacerbate or create differences in the fair housing considerations (segregation, integration, or access to opportunity) between the primary tracts in Los Altos Hills.

The Town is including several programs to increase affordable living opportunities throughout the area through multifamily rental housing and lower cost rental opportunities.

The Town is including Programs A-1, A-2, A-5, and A-6 to create a multifamily overlay zone, allow by right approval for 20 percent affordable housing developments, establish minimum densities for low-income development, and conduct an inclusionary zoning feasibility study respectively. The Town is also incentivizing the production of ADUs using methods discussed in Programs A-7 and G-2, including tracking and monitoring ADUs and encouraging existing ADUs to remain affordable. The Town is also including Program F-3 to create a registry of affordable rental units as the units are built.

There are three primary areas with RHNA site identification. The major identified sites are mixed income and all sites are in highest opportunity areas, as there is little to no discrepancy in demographic makeup or neighborhood character between the tracts in the Town. Listing and future development of the opportunity sites is not expected to change or exacerbate fair housing considerations of segregation, integration, or access to opportunity.

Town of Los Altos Hills Housing Element
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Table 40: Comparison of Fair Housing with Respect to Location Census
Tract
RHNA
Units
Total
Households
Total
Population
TCAC
Composite
Category
Median
Household
Income
% with a
Disability
% of
Children
in FHH
CalEnviroScreen
Percentile
% NonWhiteR/ECAP
Present
Census Tracts Mostly Inside of Los Altos Hills
117.01 94 1,492 4,333 Highest
Resource $213,056 6.3% 0% 1.1 38.5% No
117.04 330 1,723 4,812 Highest
Resource $224,219 5.6% 7.6% 3.8 40.1% No
Census Tracts Mostly Outside of Los Altos Hills
103.00 0 1,697 4,296 Highest
Resource $152,031 5.1% 10.9% 0.4 22.2% No
117.05 1 324 1,087 Highest
Resource $171,071 9.1% 8.6% 4.8 39.2% No
117.07 0 1,128 2,721 Highest
Resource $131,250 11.6% 3.1% 0.5 35.2% No

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Fair Housing Enforcement and Outreach Capacity
The County of Santa Clara contracts with Mid-Peninsula Citizens for Fair Housing for provision of fair housing education, outreach, and counseling services. While not providing direct funding to Mid-Peninsula Citizens for Fair Housing, the Town of Los Altos Hills is one of several jurisdictions that participate with the County of Santa Clara in providing fair housing services to its residents and make use of the programs available through MidPeninsula Citizens for Fair Housing. The Town will continue to work with the County of Santa Clara to provide fair housing education, outreach, and counseling services to its residents, see Program F-3. The Town is planning to update its website to provide information on current services available as a part of Program G-4.

There are no fully dedicated staff for fair housing complaints as the Town receives few if any complaints each year. However, any complaints received regarding substandard or illegal units are referred to Code Enforcement and Building divisions who conduct inspections of the properties/units to determine enforcement actions. Currently, all properties with rental units are single-family lots and disputes between landlords and tenants are referred to a mediation service. The Town refers disputes to the Los Altos Dispute Resolution Services. Per communication with the dispute resolution service providers in August and December 2022, from the 2017/18 fiscal year through the first two quarters of 2021, Los Altos Dispute Resolution services received 166 calls for information and referrals and 80 opened cases which were resolved, educated, conciliated, or mediated. The tracking and reporting from both the City of Los Altos and Town of Los Altos Hills resulted in:
▪ 60 calls for information and referral, and 46 opened cases in Fiscal Year 2017-2018; ▪ 30 calls for information and referral and 13 opened cases in Fiscal Year 2018-2019; ▪ 36 calls for information and referral and 11 opened cases in Fiscal Year 2019-2020; ▪ 35 calls for information and referral and 9 opened cases in Fiscal Year 2020-2021; and ▪ 5 calls for information and referral and 1 opened cases in the first two quarters of Fiscal Year 2021.

The HCD AFFH Data Viewer Tool Fair Housing and Equal Opportunity (FHEO) Inquiries by City (HUD 2013-2021) indicated a total of 0 inquiries, or the lowest ratio of less than 0.25 inquiries per 1,000 population (0 inquiries /4,767 = 0 per 1,000).

Community and stakeholder input as part of this Housing Element update suggests that there is limited local data or local knowledge of fair housing and discriminatory issues and service needs in Los Altos Hills. It is also possible that local residents who may be in need of fair housing services are not aware of, or not able to access, Mid-Peninsula Citizens services.

The Town is committed to continuing to contract with Los Altos Dispute Resolution services or provide a similar service through Program D-3. The Town is in compliance with all State and Federal fair housing laws.

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Findings
There are no communities with concentrations of fair housing issues within the Town, as it is relatively homogenous between tracts in both population characteristics and land use. A review of relevant Town policies and regulations shows that the Town is in compliance with all State and Federal fair housing laws. Nevertheless, common concerns from residents include the high cost of living, which may prevent their children from returning to their hometown. Additionally, residents raised concerns about the difficult process of trying to create housing, whether it is due to zoning constraints or permitting times and costs for ADUs. In addition, the high cost of labor and materials in the San Francisco Bay Area and a shortage of construction workers substantially increases the cost and time to build any type of housing unit. The Town is including a program to adopt a set of preapproved ADU plans to help encourage ADU production and the ADU permitting process (Program A-8).

Integration and Segregation
Race Ethnicity
Analyzing the Town of Los Altos Hills’ racial and ethnic makeup reveals areas where fair housing issues may be prevalent. Almost the entirety of the Town has a sizeable White majority, with some pockets having a predominant White majority. When Los Altos Hills incorporated in 1956, the Town required a 1-acre minimum lot size and barred the construction of multifamily housing. As these limitations often mean wealth is required for residency in the Town, generational wealth increases the likelihood of the ability to reside in Los Altos Hills. There is a common correlation between wealth and race, which may help explain the racial concentrations in the Town.

The areas directly surrounding the Town also have sizeable or predominant White majorities.

Proportionately, the Town has a larger White population than the Region, with the Town being 60 percent non-Hispanic White, Santa Clara County being 32 percent non-Hispanic White, and the Bay Area being 39 percent non-Hispanic White.

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Figure 11: Racial and Ethnic Majority, 2019
Source: HCD AFFH Data Viewer
The Town’s ethnic makeup is relatively similar between tracts with no concentrations within the Town. The non-White population increasing over time. The area of the town with a larger non-White population also encompasses the community college campus of Foothill College; see Figure 12. However, the tract showing to be a higher percentage non-White is about 46.6 percent non-White, compared to the 33.6 percent and 38.5 percent in tracts showing to be less non-White, a relatively small difference. Countywide, the non-White population is much larger than in the Town. While in Los Altos Hills 39.2 percent of the population is non-White,

58.4 percent of the County is non-White. However, the cities directly surrounding Los Altos Hills also have a similar ethnic makeup to Los Altos Hills.

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Figure 12: Percentage of the Population that is Non-White, 2010 and 2018 Source: HCD AFFH Data Viewer
As shown in
Figure 13, there is little differentiation between racial and ethnic makeup between tracts, placement of RHNA sites in certain areas is unlikely to cause any further segregation as they follow the current patterns of the Town acreage. The three major sites are not in any areas that have a concentrated non-White population.

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Affirmatively Furthering Fair Housing 94
Figure 13: Non-White Population Comparison of RHNA Units by Town Acreage Dissimilarity Index – Race and Ethnicity
Segregation can also be quantified by using the dissimilarity index. The dissimilarity index measures the distribution of two groups in a town and assigns a score between 1-100. The level of segregation is determined by assessing what percentage of residents of a census block would have to move for each block to have the exact same population of said group.

Therefore, a decreasing dissimilarity index implies higher integration, and a more even distribution of each ethnicity when compared to the White population. A higher dissimilarity index indicates higher concentrations of the indicated ethnic groups in areas of the Town, when compared to the White population distribution. The formula for this calculation is provided by HCD’s AFFH Guidance Document.

The categories for the dissimilarity index on a scale of 1-100 are as follows:
▪ <30: Low Segregation
▪ 30 – 60: Moderate Segregation
▪ >60: High Segregation
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
20-40% 20-40% 40-60% 40-60%
Percent of RHNA Units or Town Acreage
Percent of the Population that is Non-White by Block Group Lower Moderate Above Moderate Town Acreage

Town of Los Altos Hills Housing Element
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Table 41 displays the dissimilarity index for race in Los Altos Hills and the Bay Area. The dissimilarity index between the White and various non-White populations throughout the Town is in the low segregation category. The highest dissimilarity within the Town is between the Black Population and the White population, but there is almost no Black population in the Town, which may skew the score to appear as highly segregated. Los Altos Hills has lower dissimilarity index scores than in the Bay Area as a region, indicating there is potentially less racial segregation, comparatively.

Table 41: Dissimilarity Index for Race, 2020
Los Altos Hills Bay Area
2000 2010 2020 2000 2010 2020
Non-White/White 6.2 4 8.1 22.8 21.9 19.8
Black/White 16.4 24.3 16.2 34.2 32.4 31.2
Hispanic/White 6.9 15.8 7.3 27.1 26.0 24.6
Asian/White 7.3 6.3 9.2 23.2 23.4 22.6
Source: ABAG AFFH Data Report
However, since the Town has a smaller population, and a large non-White population, the size of the Town may impact the dissimilarity index scores in other, unknown ways.

Comparing the Town to the County, rather than the Town’s neighborhoods to each other, may better illustrate segregation between minority populations regionally. According to the Berkeley Othering and Belonging Institute, the Divergence Index can compare the racial groups between a census tract and a statistical area. 7F7F 8 At an index of 0.33, Los Altos Hills has
high divergence between its tracts and its statistical area. Therefore, while there is not high segregation between neighborhoods in the Town, there is segregation between the Town and the region.

Income
The dissimilarity index can also be used to calculate income segregation, using the same scale as provided above. The dissimilarity index between below-moderate and abovemoderate income groups is in the low segregation category, as shown in Table 42. Regionally in the Bay Area, the dissimilarity index indicates low to moderate segregation by income.

This is in part due to a larger representation of the various income levels in the region-wide population versus the Town population. Land use patterns in the Town are likely a contributing factor to a higher level of segregation by income. The Town is including Program A-1 to create a multifamily overlay zone so that it is suitable to accommodate lower-income households.
8 Berkeley Othering and Belonging Institute https://belonging.berkeley.edu/technical-appendix

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Affirmatively Furthering Fair Housing 96
The Town is including several programs to further accommodate lower-income households.

Increasing housing mobility and housing opportunities for the lower-income population includes multifamily rental housing and lower cost rental opportunities. The Town is including Programs A-1, A-2, A-5, and A-6 to create a multifamily overlay zone, allow by right approval for 20 percent affordable housing developments, establish minimum densities for low-income development, and conduct an inclusionary zoning feasibility study respectively.

The Town is also incentivizing the production of ADUs using methods discussed in Programs A-7 and G-2, including tracking and monitoring ADUs and encouraging existing ADUs to remain affordable. The Town is also including Program F-3 to create a registry of affordable rental units as the units are built.

Table 42: Dissimilarity Index for Income, 2010 and 2015 2010 2015
Below 80% AMI
vs. Above 80%
AMI Dissimilarity
Below 50% AMI vs.

Above 120% AMI
Dissimilarity
Below 80% AMI vs.

Above 80% AMI
Dissimilarity
Below 50% AMI vs.

Above 120% AMI
Dissimilarity
Los Altos
Hills 25.6 26.1 12.9 14.4
Bay Area 28.7 36.6 27.4 35.1
Source: ABAG AFFH Data Report
There are no areas within the Town where more than 25 percent of the population is in the low- to moderate-income population. Los Altos Hills has a higher percentage of single-family homes, and the lack of multifamily units correlates with the lack of a low- or moderateincome population. The County as a whole follows this correlation, with areas with more multifamily housing having more of a low- to moderate-income population. As noted in the Needs Section, the median income of the Town of Los Altos Hills is $250,001, over $100,000 higher than the County median of $133,076.

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Figure 14: Low to Moderate Income Population, 2015
Source: HCD AFFH Data Viewer
As shown in Figure 15, throughout the Town, the low- to moderate-income population makes up less than 25 percent of each block group. As such, the three main RHNA sites are not located in any areas with an existing high concentration of low- to moderate-income population and are not expected to have a negative effect on the trend of this population.

Town of Los Altos Hills Housing Element
Affirmatively Furthering Fair Housing 98
Figure 15: Low-Moderate Income Population Comparison of RHNA Units by Town Acreage
There are no areas within the Town where more than 10 percent of the population is below the federal poverty line. Los Altos Hills has a high percentage of single-family homes, so the lack of those in poverty correlates with the lack of multifamily or affordable housing. There is not a history of poverty in the Town. The population living below the federal poverty level countywide is also relatively low, at 7.2 percent, versus 3 percent in the Town. A high cost of living in the Bay Area region means that while there may not be a large population living below the federal poverty line, affording to live in the area can still be difficult even when making well above poverty level.

The Town is including several programs to increase affordable living opportunities in the area through multifamily rental housing and lower cost rental opportunities. The Town is including Programs A-1, A-2, A-5, and A-6 to create a multifamily overlay zone, allow by right approval for 20 percent affordable housing developments, establish minimum densities for low-income development, and conduct an inclusionary zoning feasibility study respectively.

The Town is also incentivizing the production of ADUs using methods discussed in Programs A-7 and G-2, including tracking and monitoring ADUs and encouraging existing ADUs to 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0-25% 0-25%
Percent of RHNA Units or Town Acreage
Percent of the Population that is Low to Moderate Income by Block Group Lower Moderate Above Moderate Town Acreage

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Affirmatively Furthering Fair Housing 99
remain affordable. The Town is also including Program F-3 to create a registry of affordable rental units as the units are built.

Figure 16: Poverty Status, 2014 and 2019
Source: HCD AFFH Data Viewer
Per the HCD AFFH data viewer and as shown in Figure 17, there is little Housing Choice Voucher use within the Town of Los Altos Hills. Though tracts with less than 10 users are omitted from the data service, the overall town demographics make it unlikely that there is use not being shown by the data. There is a concentration of voucher use to the north of the Town, in the area around Stanford University. This part of Town is older and has smaller homes on average and there may be older ADUs or rental units mixed throughout which provide income for owners who are on fixed incomes.

Town of Los Altos Hills Housing Element
Affirmatively Furthering Fair Housing 100
Figure 17: Housing Choice Vouchers, 2010
Source: HCD AFFH Data Viewer
Familial Status
There are 79 female-headed households in Los Altos Hills, constituting 2.6 percent of the total households in the community. Of these, only 34 have related children, or 1.1 percent of the total. The typical female-headed household is a property owner and resides in a singlefamily dwelling. Additionally, none of the RHNA sites are located in an area with a concentration of children in female-headed households, as shown in Figure 18.

Regionally, female-headed households make up 13.8 percent of households in Santa Clara County, about 7 percent of the total households are female-headed households with children. Comparatively, this population makes up a low amount of the Town’s total households, and thus Los Altos Hills may have a comparatively lesser need for subsidized day care than the region.

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Affirmatively Furthering Fair Housing 101
Figure 18: Children in Female-Headed Households and RHNA Sites, 2019 Source: HCD AFFH Data Viewer
There is no spatial concentration of children in female-headed households in the Town, and thus no correlation between these households and disproportionate need. As shown in Figure 19, throughout the Town, female-headed households make up less than 20 percent of each tract. As such, the three main RHNA sites are not located in any areas with an existing high concentration of female-headed households and are not expected to have a negative effect on the trend of this population.

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Figure 19: Percent of Children in Female-Headed Households Comparison of RHNA Units by Town Acreage
Figure 20 shows that Town-wide, over 80 percent of children live in married-couple households. Countywide, a high percentage of children are also in married-couple households, with 81.8 percent of children meeting this category compared to the 96 percent in Los Altos Hills.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0-20% 0-20%
Percent of RHNA Units or Town Acreage
Percent of Children in Female-Headed Households by Tract Lower Moderate Above Moderate Town Acreage

Town of Los Altos Hills Housing Element
Affirmatively Furthering Fair Housing 103
Figure 20: Children in Married Couple Households, 2019
Source: HCD AFFH Data Viewer
Persons with Disabilities
Per Table 43, in Los Altos Hills, 512 individuals, or 6 percent of the population, has a disability, of which 381 are part of the elderly population. Rates of disability in the County and region are slightly higher than in the Town.

Table 43: Population by Disability Status, 2019
Geography No Disability With a Disability
Los Altos Hills 7,993 94.0% 512 6.0%
Santa Clara County 1,763,431 92.0% 154,212 8.0%
Bay Area 6,919,762 90.4% 735,533 9.6%
Source: ACS 5-Year Estimates Data, 2019, Table B18101.

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Affirmatively Furthering Fair Housing 104
The most prominent disabilities in Los Altos Hills are hearing difficulties, independent living difficulties, and ambulatory difficulties, as shown in Figure 21. Los Altos Hills has similar rates of persons with a hearing difficulty to the County, and lower rates of all other types of disabilities. Countywide, independent living and ambulatory difficulties are also among the most prominent. While hearing difficulties are the most common type of disability in the Town, they are the fourth most prevalent disability type in the County. Compared to the County, Los Altos Hills has a larger elderly, a population where hearing difficulties are more prominent. For those with independent living or ambulatory difficulties, ADU availability would be a benefit, as it allows caretakers or family members to live adjacent to a resident in need of additional support for mental and physical health issues, or with conducting everyday errands.

The Town of Los Altos Hills provides transportation services, food delivery, and prescription delivery for seniors. This may support those with ambulatory or independent living difficulties.

Figure 21: Disability Characteristics, 2020

2.3%

2.0%

1.6%

1.3%

0.4% 0.3%

2.3%

4.5% 4.4%

3.3%

2.1%

1.4%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%
Hearing
Difficulty
Independent
Living Difficulty
Ambulatory
Difficulty
Cognitive
Difficulty
Self Care
Difficulty
Vision Difficulty
Percent of Population
Disability Characteristic
Los Altos Hills Santa Clara County

Town of Los Altos Hills Housing Element
Affirmatively Furthering Fair Housing 105
Source: ACS Five Year Estimates
While household design and location could prevent those with an ambulatory difficulty from living in certain areas of the town, Figure 22 shows that the distribution of the disabled population is relatively evenly distributed throughout Los Altos Hills, with no extreme concentration. Furthermore, the population with a disability has decreased since 2014, with the distribution becoming more homogenous over time. While there is no concentration of the disabled population, the even distribution implies a need for well-distributed health care access. The Town has provided a resource with recommended accessibility features to include in-home development for applicants and their architects to incorporate these into home design features as desired. These recommended accessibility features are intended to provide universal, consistent accessibility designs and to make homes safer and easier to use for aging or disabled persons.6F6F
9 These Town-recommended features include:
▪ An accessible route of travel from the sidewalk or street to the primary entrance with graded surfaces and no steps to the entry;
▪ At least one accessible secondary access to the dwelling; ▪ Thirty-six-inch-wide doors with low threshold heights; ▪ Wide halls and an accessible travel route to the kitchen, bedroom, bathroom, and common rooms;
▪ Adequate work and floor space at appliances;
▪ Adequate maneuvering space in bathrooms; and
▪ Minimum or no thresholds in at least one shower with appropriate drainage as required by the Building Department.

There are no RHNA sites in areas where a high percentage of the population has a disability as there is no area with a concentration of a disabled population. Location of the sites is not likely to have much effect on this demographic.
9 Age Friendly Design Elements https://www.losaltoshills.ca.gov/DocumentCenter/View/95/AgeFriendly-Design-PDF

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Figure 22: Population with a Disability, 2019
Source: HCD AFFH Data Viewer
As shown in Figure 23, throughout the Town, the population with a disability makes up less than 20 percent of each tract. 96 percent of the town acreage has a population where less than 10 percent of the tract’s population has a disability. As such, the three main RHNA sites are not located in any areas with an existing high concentration of the population with a disability and are not expected to have a negative effect on the trend of this population.

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Affirmatively Furthering Fair Housing 107
Figure 23: Population with a Disability Comparison of RHNA Units by Town Acreage Findings
Overall, the Town of Los Altos Hills consists primarily of wealthy households with a majority of white residents and a large and growing Asian population. The Town has few children in female-headed households, and the majority of children in married-couple households.

Segregation is relatively low compared to the surrounding Bay Area. This is likely due to the higher levels of racial diversity regionally than in the Town. The location of the RHNA sites is not likely to have much effect on concentrations of certain populations within the Town, as the land use and makeup of the Town are currently evenly distributed.

The Town is including a number of programs to address the results of the integration and segregation analysis. This includes Program A-1 which creates a new multifamily zone to allow and expedite affordable housing construction to increase housing choice options and mobility, Program A-6 which conducts a study of and adopts an inclusionary housing ordinance, Program F-3 which provides fair housing outreach and resources, including creating a registry of affordable rental units as the units are built, and Program G-3 which educates residents about source of income protection and encourages housing mobility. The Town is including Programs A-2 and A-5, to allow by right approval for 20 percent affordable 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0-10% 0-10% 10-20% 10-20%
Percent of RHNA Units or Town Acreage
Percent of the Population with a Disability by Tract
Lower Moderate Above Moderate Town Acreage

Town of Los Altos Hills Housing Element
Affirmatively Furthering Fair Housing 108
housing developments and establish minimum densities for low-income development. The Town is also incentivizing the production of ADUs using methods discussed in Programs A-7 and G-2, including tracking and monitoring ADUs and encouraging existing ADUs to remain affordable.

Racially & Ethnically Concentrated Areas of Poverty and Affluence R/ECAPs
HUD defines Racially and Ethnically Concentrated Areas of Poverty (R/ECAPs) as areas where the percentage of the population that is non-White is over 50 percent and the percentage of households with incomes below the poverty line is over 40 percent.

As shown in Figure 24, there are no R/ECAPs in the Town of Los Altos Hills per HCD’s AFFH Data Viewer Tool. The closest R/ECAP to Los Altos Hills is in the City of San Jose, about 20 miles east of the Town.

There are no RHNA sites that are in R/ECAPs and the site selections will not create conditions that lead to a R/ECAP.

Figure 24: Presence of a R/ECAP Comparison of RHNA Units by Town Acreage 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
No R/ECAP Present No R/ECAP Present
Percent of RHNA Units or Town Acreage
Presence of a R/ECAP by Tract
Lower Moderate Above Moderate Town Acreage

Town of Los Altos Hills Housing Element
Affirmatively Furthering Fair Housing 109
Racially Concentrated Areas of Affluence
Per HCD’s AFFH guidance document, a Racially Concentrated Area of Affluence (RCAA) is an area with a population that is greater than 80 percent White and has a median household income level over $125,000.8F8F
10 The Town of Los Altos Hills only meets one of those two criteria. The median income of the Town of Los Altos Hills is $250,001. The Town of Los Altos Hills is 60 percent non-Hispanic white and does not meet the RCAA criteria that greater than 80 percent of the population is White. HUD defines Racially Concentrated Areas of Affluence (RCAAs) as areas where the percentage of the population in a tract that is White is over 1.25 times the average percentage of the population that is White in the given Council of Governments (COG) region and median income is 1.5 times higher than the COG or State AMI, whichever is lower. Despite not meeting the HCD definition, Los Altos Hill is a racially concentrated area of affluence compared to the overall State AMI.

While the median income is higher in the Town than County-wide, The majority of the region surrounding the Town also meets the criteria to be considered an RCAA. The presence of an RCAA does not correlate with racial or housing type trends, as there is an RCAA present throughout this area and throughout the Town regardless of the racial composition or rates of overpayment.

Jurisdiction 2019 Median Income
Town of Los Altos Hills $250,001
Owner-Occupied Households $250,001
Renter-Occupied Households $250,001
Santa Clara County $133,076
Owner-Occupied Households $167,124
Renter-Occupied Households $97,280
The Town of Los Altos Hills in its entirety is a racially concentrated area of affluence as shown in Figure 25 per HCDs AFFH data viewer. The figure shows the two census tracts that make up approximately 95 percent of the Town, 117.01 and 117.04, as well as the census tracts with small slivers in the Town and neighboring census tracts. Surrounding jurisdictions also have large portions that are RCAAs. Regionally, almost the entire Bay Area is considered an RCAA. The median income for Santa Clara County as a whole is over $125,000. As is the case in Los Altos Hills as shown in Figure 11, almost the entire Bay Area has a sizeable white majority in each tract. Much of the surrounding areas are also in the high or highest resource category.
10https://www.hcd.ca.gov/community-development/affh/docs/affh_document_final_4-27-2021.pdf

Town of Los Altos Hills Housing Element
Affirmatively Furthering Fair Housing 110
Income patterns indicate that the Town of Los Altos Hills is a concentrated area of high incomes and high resource. There is little variation between the two census tracts that make up the Town. To provide a finer level of analysis of key demographics that contribute to the Town’s designation as an RCAA, data is shown in Table 44 below by block group. There is still little variation among census block groups in the Town. There is a slightly higher percentage of non-white population in the northern and southern census block groups. Many of the block groups do not have median income provided on the AFFH data viewer site.

The Town is including programs A-1 and G-3 on RHNA sites to allow for an increased variety of housing stock and housing mobility in the Town. In coordination with these programs, the Town is including Program F-2: Housing Mobility, which includes allowing multifamily housing within the Town. Providing lower income rental units will attend to the needs of a lower income population.

While HCD’s AFFH guidance document defines a Racially Concentrated Area of Affluence (RCAA) as an area with a population that is greater than 80 percent, as shown in Table 44, only about 60 percent of each census tract containing an RCAA is White. These tracts in Los Altos Hills are still considered RCAAs as the percentage of the population in the tract that is White is over 1.25 times the average percentage of the population that is White in ABAG.

Also shown in the Table below is the Median income in the tracts where an RCAA is present.

The median incomes in the tracts making up the majority of the land area are about $213,000 and $224,000. Overpayment by owners is at a rate of 28.3 percent in the northern tract and

38.5 percent in the southern tract where the RCAA is present. As renter-occupied households only make up 8.5 percent of the households in Los Altos Hills, the distribution in relationship to the presence of the RCAA may be relatively arbitrary. While the majority of the surrounding tracts are also RCAAs, the owners in the nearby tracts to the east of the Town experience overpayment at similar rates, indicating little to no correlation between the presence of an RCAA and rates of overpayment in this area.

The Town has a historic use of racial covenants placed on several properties. Racially restrictive covenants and property deed restrictions were popular in the 1920s. Though no longer in effect, that these covenants have lasting impact on the racial and ethnic makeup of the Town. However, the effect of the racial covenants has diminished with time, and the Town has gone from 98 percent White in 1970 to 60 percent White in 2020. The increasing diversity of the Town indicates that impacts of racial covenants are waning and the primary factors limiting housing mobility and choice in the Town currently are household wealth, low density zoning, and high housing costs.

Los Altos Hills will rezone at least 34 acres including an overlay zone allowing high density multifamily development at 30 du/ac on infill sites totaling 19 acres of institutional designated land, and will rezone 15 acres of single family designated land to allow multifamily development at least 20 du/ac. The new zoning, along with ADUs, will accommodate the Town’s need for lower and moderate-income housing.

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The Town is including several programs to increase affordable living opportunities throughout the area through multifamily rental housing and lower cost rental opportunities.

The Town is including Programs A-1, A-2, A-5, and A-6 to create a multifamily overlay zone, allow by right approval for 20 percent affordable housing developments, establish minimum densities for low-income development, and conduct an inclusionary zoning feasibility study respectively. The Town is also incentivizing the production of ADUs using methods discussed in Programs A-7 and G-2, including tracking and monitoring ADUs and encouraging existing ADUs to remain affordable. The Town is also including Program F-3 to create a registry of affordable rental units as the units are built.

Table 44: RCAA Coincidence with Other Fair Housing Factors by Tract Census
Tract
RHNA
Units
TCAC
Composite
Category
Median
Household
Income
% with a
Disability
% of
Children
in FHH
CalEnviroScreen
Percentile
%
NonWhite
RCAA
Present
Census Tracts Mostly Inside of Los Altos Hills
117.01 94 Highest
Resource $213,056 6.3% 0% 1.1 38.5% Yes
117.04 330 Highest
Resource $224,219 5.6% 7.6% 3.8 40.1% Yes
117.04 330 Highest
Resource $224,219 5.6% 7.6% 3.8 40.1% Yes
117.04 330 Highest
Resource $224,219 5.6% 7.6% 3.8 40.1% Yes
Census Tracts Mostly Outside of Los Altos Hills
103.00 0
Highest
Resource $152,031 5.1% 10.9% 0.4 22.2% Yes
103.00 0
Highest
Resource $152,031 5.1% 10.9% 0.4 22.2% Yes
103.00 0
Highest
Resource $152,031 5.1% 10.9% 0.4 22.2% Yes
117.05 1
Highest
Resource $171,071 9.1% 8.6% 4.8 39.2% Yes
117.07 0
Highest
Resource $131,250 11.6% 3.1% 0.5 35.2% Yes
117.07 0
Highest
Resource $131,250 11.6% 3.1% 0.5 35.2% Yes

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Census
Tract
RHNA
Units
TCAC
Composite
Category
Median
Household
Income
% with a
Disability
% of
Children
in FHH
CalEnviroScreen
Percentile
%
NonWhite
RCAA
Present
117.07 0
Highest
Resource $131,250 11.6% 3.1% 0.5 35.2% Yes
Source: AFFH Data Viewer

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Figure 25: Regionally Concentrated Areas of Affluence
Source: HCD AFFH Data Viewer

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Disparities in Access to Opportunities
California Tax Credit Allocation Committee (TCAC)
One tool that can be used to analyze disparities in access to opportunities is the California Tax Credit Allocation Committee’s (TCAC) Opportunity Area scores. These were prepared by a task force commissioned by TCAC and HCD to identify areas statewide whose economic, educational, and environmental characteristics support positive outcomes for low-income families. The map is updated annually. Opportunity maps are made for three domains:
economic, environmental, and education. Each map uses categorical indicators to determine its individual score. A composite score and resource designation combining all three designations is then assigned to each block group.

To determine the final resource category, the top 20 percent of overall scores in a county are labeled as highest resource and the next 20 percent of scores are labeled as high resource.

Then, any areas that are considered segregated and that have at least 30 percent of the population living below the federal poverty line are labeled as an area of high segregation and poverty. Any remaining uncategorized areas are evenly divided between moderate resource and low resource areas.

Economic indicators include poverty, adult education, employment, job proximity, and median home value. Figure 26 shows the TCAC economic score as overall very positive, with all tracts having a score over 0.75. High economic scores in the Town may be associated with high incomes and high home values. The surrounding tracts have positive economic scores as well.

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Figure 26: TCAC Economic Score, 2021
Source: HCD AFFH Data Viewer
Education indicators include math and reading proficiencies of fourth graders, high school graduation rates, and the student poverty rate. The Los Altos School District (LASD) serves all of Los Altos Hills, as well as Los Altos, Mountain View, and Palo Alto. As shown in Figure 27, the TCAC education score is overall very positive, with all tracts having a score over 0.75.

High education scores in the Town may be associated with high incomes and high tax funding. The surrounding tracts have positive education scores as well.

The vast majority of schools in the Los Altos Elementary School District are considered above average based on the Great Schools ratings. The one public school in Los Altos Hills is rated a 9 out of 10. The ratings are based on academics, equity, and the school environment compared to other public schools in the state. Scores throughout the Bay Area are relatively high, with schools in nearby cities like Los Altos and Portola Valley receiving primarily scores of 8 and above.

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Figure 27: TCAC Education Score, 2021
Source: HCD AFFH Data Viewer
The environmental domain utilizes CalEnviroScreen (CES) 4.0 pollution indicators and values.

The majority of the Town has below average environmental outcomes, with scores between

0.25 and 0.50. Highest scored environmental threats to the community include groundwater threats, traffic, cleanups, and hazardous waste. The Town being bisected by a highway is likely a contributor to these environmental hazards.

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Figure 28: TCAC Environmental Score, 2021
Source: HCD AFFH Data Viewer
Regionally, the Town has higher environmental outcomes than other cities in the County. A regional map of TCAC environmental scores is shown in Figure 29. The region has varied scores, with better environmental outcomes in the northwest and worst in the northeast.

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Figure 29: Regional TCAC Environmental Score, 2021
Source: HCD AFFH Data Viewer

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Composite scores for the Town and RHNA sites by income level are shown in Figure 30. The entire Town scores in the highest resource category. As such, all RHNA sites are in areas designated as highest resource.

Figure 30: TCAC Composite Score and RHNA Sites,
Source: HCD AFFH Data Viewer
As shown in Figure 31, the entire Town is in the highest resource TCAC category. As such, the RHNA sites are all located in highest resource areas and are not expected to have a negative effect on this trend.

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Figure 31: TCAC Composite Score Comparison of RHNA Units by Town Acreage Transportation
Access to adequate transportation and a variety of transit options can help illustrate disparities in access to opportunities. The Valley Transit Authority (VTA) serves Santa Clara County, and there is also a commercial shuttle service available from the San Francisco and San Jose airports.

Transit routes in the Bay Area are shown in Figure 32. The VTA provides service to Foothill College with bus lines along El Monte Road. The Foothill College-Mountain View bus route provides a connection to the Mountain View Caltrain station and to the Tasman Light Rail Line. The VTA also provides express service to Foothill College via Interstate 280. There is also some biking infrastructure in the areas surrounding Foothill College. 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Highest Resource Highest Resource
Percent of RHNA Units or Town Acreage
TCAC Composite Score by Census Tract
Lower Moderate Above Moderate Town Acreage

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Figure 32: Transit Route Map, 2022
Stanford University also has a bus service that serves the Stanford Business Park which directly abuts the northerly Town boundary. One of the bus lines, the Marguerite Shuttle, goes up to Arastradero Road.

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Figure 33: Marguerite Shuttle Map
CalEnviroScreen 4.0
CES is a tool that identifies communities in California that are disproportionately burdened by pollutants. While Figure 28 uses CES 3.0, Figure 34 below uses CES 4.0, which has more recent data, improved calculations, and additional indicators. Factors used to identify communities include ozone, particulate matter, drinking water contaminants, pesticide use,

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lead, diesel particulates, asthma rates, population characteristics, and linguistic isolation. A higher score indicates a higher effect of pollutants for the area.

The entirety of Los Altos Hills is below the third CES percentile and is therefore considered to have an extremely low effect of pollutants on the area. The tracts are only slightly above the 3rd percentile when not including population characteristics. The areas surrounding Los Altos Hills have similarly low CES scores. As the entire Town is in the lowest score category of CES, distribution of the RHNA sites will all occur within a low CES score area.

The Town adopted a Climate Action Plan in 2021. As a part of Program B-5, the Town will provide incentives to encourage energy efficient projects, including implementation of the identified community measures and actions identified in the 2021 Climate Action Plan.

Actions include incentives for electrification and energy efficient buildings, permit streamlining for electrification, a subsidized home electrification assessment, Electric Vehicle Charging Station Permit Streamlining, and Reach Codes.

Figure 34: CES Percentile and RHNA Sites, 2021
Source: HCD AFFH Data Viewer

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As shown in Figure 35, the entire Town is in 0-10 CES percentile. As such, the RHNA sites are all located in areas with the lowest CES scores and are not expected to have a negative effect on this trend.

Figure 35: CalEnviroScreen Percentile Scores Comparison of RHNA Units by Town Acreage
Findings
Trends in the access to opportunities analysis show that the Town largely has good access to opportunities throughout. All of the Town is classified as highest resource, despite the low-scoring environmental opportunity scores. As all of the Town is classified as highest resource, all RHNA sites are in highest-resource areas, ensuring that future housing will result in access to opportunities for households at all income levels.

The Town is including a number of programs to address the results of the access to opportunities analysis. This includes Program A-1 which includes adopting a multifamily housing overlay zone.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0-10 0-10
Percent of RHNA Units or Town Acreage
CalEnviroScreen Percentile by Tract
Lower Moderate Above Moderate Town Acreage

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Disproportionate Housing Needs
Substandard Housing
Disproportionate housing needs are determined by finding trends in housing problems in the population by race, household size, or household age. A household is considered substandard or having a housing problem if it has one or more of the following housing problems:
▪ Housing unit lacks complete kitchen facilities
▪ Housing unit lacks complete plumbing facilities
▪ Housing unit is overcrowded
▪ Household is cost burdened
Figure 36 and Figure 37 show a comparison of housing problems and cost burdens as they relate to race, age, and housing size. A large household is a household with three or more children, but it is also often calculated as a household with five or more people. Large and elderly households are often more likely to experience housing problems. Note that there are no Native American households in the Town so no data is shown. There are no Pacific Islander or Hispanic rental households in the Town, so no data is shown. There are 15 Black owner occupied and no Black renter occupied households in the Town; no Black households have any housing problems in the Town, so no bar is shown. There are 84 Hispanic owner occupied households in the Town, and none experience any housing problems or cost burden.

Figure 36: Housing Problems by Tenure and Race/Elderly/Housing Size, 2018 Source: HUD CHAS Data, 2018
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
White Black Asian Nat Am Pac
Islander
Hispanic Elderly Large All
Owner-Occupied Renter-Occupied Santa Clara County

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Figure 37 shows a comparison of cost burden as it relates to race, age, and housing size. Cost burden is when a household spends more than 30 percent of its monthly income on housing costs like rent, mortgage, or utilities. Large households have more costs to support more people and may experience cost burden or no excess of funds to amend housing problems.

Elderly households may be on a fixed income in a home bought before retirement, which affects excess funds necessary for housing maintenance.

Figure 37: Cost Burden by Tenure and Race/Elderly/Housing Size, 2018 Source: HUD CHAS Data, 2018
Per Figure 38, there are no concentrated areas of cost-burdened owners. Over time, cost burden for homeowners has decreased throughout the Town. As shown in Figure 39, overpayment by renters has decreased south of the highway, and increased north of the highway over time. As renter-occupied households only make up 8.5 percent of the households in Los Altos Hills, the distribution may be relatively arbitrary.

Los Altos Hills has a lower rate of cost burden than the County among both renter and owner households. In Los Altos Hills 20.8 percent of renters are cost burdened compared to, 43.3 percent of renters are cost burdened countywide.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
White Black Asian Nat Am Pac
Islander
Hispanic Elderly Large All
Owner-Occupied Renter-Occupied Santa Clara County

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Figure 38: Overpayment by Owners, 2014 and 2019
Source: HCD AFFH Data Viewer
Figure 39: Overpayment by Renters, 2014 and 2019
Source: HCD AFFH Data Viewer
Overcrowding
A household is considered overcrowded when there is more than one person per room, including living and dining rooms but excluding bathrooms and kitchens. There is no concentration of overcrowding in the Town of Los Altos Hills, and overcrowding is not a prominent issue in the Town. Town-wide, only 9 households experience overcrowding, or 0.3 percent of the population. All households experiencing overcrowding are renter households.

Regionally, overcrowding is not a predominant issue, with 8 percent of households experiencing overcrowding, with the nearest concentration of overcrowded households being in Mountain View.

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Figure 40: Overcrowded Households, 2010
Source: HCD AFFH Data Viewer
Table 45: Overcrowding, 2020
Overcrowded
Households
Percent of
Households
Overcrowded
Households
Percent of
Households
Overcrowded
Households
Percent of
Households
Owner Renter Total
Los Altos Hills
0 0% 9 0.3% 9 0.3%
Santa Clara County
12,340 1.9% 39,022 6.1% 51,362 8.0%
Source: US Census Bureau (2016-2020). Table B25014 American Community Survey 5-year estimates.

Homelessness
Santa Clara County conducts a biannual homeless census and survey to collect information on individuals and families sleeping in emergency shelters and transitional housing, as well

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as people sleeping on the streets, in cars, in abandoned properties, or in other places not meant for human habitation.

The Town of Los Altos Hills was found to have two unsheltered individuals in this count, and no sheltered individuals, as shown in Table 46. It is estimated that there are no longer any unsheltered homeless individuals in the Town, and therefore no spatial concentrations or trends of homelessness. The Community Services Agency provides help finding affordable housing, navigating community resources and programs, and paying for first month's housing costs for homeless individuals in Los Altos Hills. The Town has a much lower homeless population overall than the rest of the region.

Table 46: Regional Point in Time Count, 2019
Homeless Population Sheltered Unsheltered Total
Los Altos Hills 0 2 2
Campbell 0 74 74
Cupertino 0 159 159
Gilroy 359 345 704
Los Altos 0 76 76
Los Gatos 0 16 16
Milpitas 0 125 125
Monte Sereno 0 0 0
Morgan Hill 0 114 114
Mountain View 32 574 606
Palo Alto 14 299 313
San Jose 980 5,117 6,097
Santa Clara 62 264 326
Saratoga 0 10 10
Sunnyvale 147 477 624
Source: 2019 Santa Clara County Homeless Census and Survey.

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Displacement
The Urban Displacement Project at University of California, Berkeley developed a map of communities where residents may be particularly vulnerable to displacement in the event of increased redevelopment and drastic shifts in housing cost; these are known as sensitive communities.9F9F
11 Sensitive communities are defined based on the following set of criteria:
▪ The share of very low-income residents is above 20 percent. ▪ The tract must also meet two of the following criteria:
o The share of renters is above 40 percent.
o The share of people of color is above 50 percent.
o The share of very low-income households (50 percent AMI or below) that are severely rent burdened is above the county median.
o They or areas in close proximity have been experiencing displacement pressures. Displacement pressure is defined as:
▪ The percentage change in rent above county median for rent increases OR
▪ The difference between tract median rent and median rent for surrounding tracts above median for all tracts in county (rent gap).

There are no areas in the Town vulnerable to displacement identified by the Urban Displacement Project. In general, the Town is attempting to meet its RHNA without displacing existing residents. Therefore, the Town’s RHNA strategy is not anticipated to exacerbate risk of displacement. Instead, it is expected to minimize displacement by providing new housing opportunities for all income levels.

Findings
The analysis of disproportionate housing needs shows similar trends to the access to opportunities and integration and segregation analysis. There are no concentrations of populations with more problems or risks. Therefore, RHNA sites are not in areas with concentrated disproportionate housing needs.

The Town is including a number of programs to help address disproportionate need, including programs A-6 Inclusionary Housing Ordinance, B-4 Objective Standards, and F-1 Place-Base Community Improvements.
11 University of California, Berkeley, Sensitive Communities Project, https://www.sensitivecommunities.org/.

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Other Contributing Factors
Historic Land Use Practices
The Town of Los Altos Hills was incorporated in 1956, at a population of 2,500. It is about 9 square miles. The Town was incorporated with the intent to maintain a rural-residential land use pattern. The Town has a minimum lot size of 1 acre, and multi-family uses are not allowed anywhere in the Town, although duplexes are permitted by right on most properties through Senate Bill 9 (SB 9) and the Town’s SB 9 Ordinance. The one-acre parcel size along with the rapid increase in home values over the past 40 years has resulted in some of the most expensive property values in the country. Additionally, the only housing allowed other than single-family residential, are ADUs and SB 9 units. No commercial or industrial uses are allowed in the Town, but there are several public and institutional uses allowed on parcels for educational, public, and religious uses.

Historic Use of Racial Covenants
After the 1917 Supreme Court decision found that explicitly racial zoning was illegal, many communities began practice of adopting large lot/low-density zoning.10F10F 12 This zoning made
land and housing more expensive and created new barriers and increased levels of segregation based on income that perpetuated similar racial impacts. These zoning and land use patterns limit housing availability and choice and have created patterns of segregation, and significant gaps in access to resources and opportunity that persist today. 11F11F 13,
12F12F
14 The Town has a historic use of racial covenants placed on several properties. Racially restrictive covenants and property deed restrictions were popular in the 1920s. They prohibited the sale or rental of housing to persons based on race, ethnicity, country of origin or religion. They remained legal and common practice until the 1948 Supreme Court decision, Shelley v. Kraemer, declaring the government enforcement of racially based restrictive covenants illegal. However, the Court found that the covenants themselves were not invalid, thus allowing private parties to continue to voluntarily adhere to the restrictions.

The presence remained a significant signal and deterrent to fair housing. However, many 12 Buchanan vs. Warley.
13 Trounstine, Jessica. Segregation by Design (2018). Chapter 4, Engineering Enclaves: How Local Governments Produce Segregation.
14 Rothstein, Richard. The Color of Law (2017). Chapter 3, Racial Zoning.

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such covenants were common across the Bay Area and Santa Clara County and some still exist in official property deeds.13F13F
15 ,
14F14F
16 Multiple respondents in the survey noted that they were aware of a racial covenant on their property. Many property documents containing a racial covenant also include a disclaimer that the racial covenant is no longer applicable, but they are still in the written document, nonetheless. This exclusion of non-White populations prevented generational homeownership in the Town.

As housing costs continue to rise, current homeowners in the focus groups expressed that they would be unable to purchase their home today if they had not purchased it decades before. Though no longer in effect, that these covenants have lasting impact on the racial and ethnic makeup of the Town. However, the effect of the racial covenants has diminished with time, and the Town has gone from 98 percent White in 1970 to 60 percent White in 2020. The increasing diversity of the Town indicates that impacts of racial covenants are waning and the primary factors limiting housing mobility and choice in the Town currently are household wealth, low density zoning, and high housing costs.

Community Opposition to Housing Development
A portion of Town identity is steeped in maintaining the rural-residential character of the Town. This identity contributes to the lack of commercial and multi-family zoning in the Town. This can manifest itself in community opposition to new development. A portion of survey responses illustrated this opposition to new housing developments, as respondents indicated the desire to for the Town to preserve its “rural-residential” character. However, the majority of community members contacted in focus groups and who responded to the survey showed an interest in more affordable or multifamily housing being made available in specific areas of the Town (many suggested at Foothill College) in order to provide housing that future generations may be able to afford.

Historic and contemporary attitudes of opposition to new housing development which may have made it difficult to develop multifamily projects. The Town is addressing this by creating an overlay zone and the rezoning of identified opportunity sites to accommodate for multifamily developments, through Program A-1.

Lending Patterns
Table 47 displays the disposition of conventional home purchase loan applications by race for the years 2018 and 2019. In the Town, non-Hispanic White and non-Hispanic Asian/Asian Pacific Islanders have the most applications denied. The acceptance rate is relatively 15 Rothstein, Richard. The Color of Law (2017). Chapter 5, Private Agreements, Government Enforcement.
16 Schafran, Alex. The Road to Resegregation (2018), page 159.

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consistent across racial groups and does not indicate the presence of racial discrimination in lending patterns in the Town.

Table 47: Mortgage Applications and Acceptance by Race, 2018-19 Racial / Ethnic
Group
Application
approved
but not
accepted
Application
denied
Application
withdrawn
by
applicant
File closed for
incompleteness
Loan
originated
American Indian or
Alaska Native, NonHispanic0 0% 0 0% 0 0% 0 0% 0 0%
Asian / API,
Non-Hispanic 4 3% 26 19% 20 15% 5 4% 79 59%
Black or African
American, NonHispanic
1 33% 0 0% 0 0% 0 0% 2 67%
White, Non-Hispanic 4 2% 32 19% 26 15% 6 3% 104 60%
Hispanic or Latinx 1 12% 1 12% 1 12% 1 12% 4 50%
Unknown 4 4% 14 14% 14 14% 4 4% 63 64%
Totals 14 3% 73 18% 61 15% 16 4% 252 61%
Source: Federal Financial Institutions Examination Council's Home Mortgage Disclosure Act loan/application register files

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Fair Housing Issues, Contributing Factors, and Meaningful Action Table 48 displays the identified fair housing issues, contributing factors, relative priority, and meaningful actions drawn from the analysis of fair housing. Higher priority is given to factors that limit fair housing choice and/or negatively impact fair housing, per Government Code Section 65583(c)(10)(A)(iv).

Table 49 provides a detailed overview of actions included in Housing Element Programs that are aimed at affirmatively furthering fair housing. The table separates the actions by their identified fair housing issue and priority level. It provides an overview of each specific commitment, timeline, a geographic targeting, and metric for each program.

Table 48: Contributing Factors
Identified Fair
Housing Issue Contributing Factor Action Priority
Outreach
• Lack of widely
publicized housing
information
• Program D-3: LandlordTenant Mediation
• Program E-1: Fair Housing
Education and Counseling
• Program F-3: Fair Housing
Outreach and
Enforcement
• Program G-1: Housing
Information
• Program G-2: ADU and SB
9 Education
Low
Integration and
Segregation
• History of racial
covenants
• Concentrated wealth in
the Town as compared
to the region
• Program A-6: Inclusionary
Housing Ordinance
• Program F-3: Fair Housing
Outreach and
Enforcement
• Program E-11: Incentives
for Lower-Income
Housing Development
Moderate
Disproportionate
Housing Needs
• Lack of affordable or
any multifamily
housing/diverse
housing stock
• Program A-6: Inclusionary
Housing Ordinance
• Program A-12: Conversion
to Duplex or Triplex
• Program E-7: Senior
Center Funding
High

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Identified Fair
Housing Issue Contributing Factor Action Priority
• Program F-6: Participation
in Regional Housing
Mobility Efforts
• Program G-3: Source of
Income Protection /
Housing Mobility
Access to
Opportunity
• Lack of affordable or
any multifamily
housing/diverse
housing stock
• Local land use
practices/historical
zoning policies
• Program A-1: Multifamily
Zone District
• Program A-6:

Manufactured Home
Streamlining
• Program A-12: Conversion
to Duplex or Triplex
• Program F-3: Town
Affordable Rental Unit
Registry
• Program F-6: Participation
in Regional Housing
Mobility Efforts
• Program G-3: Source of
Income Protection /
Housing Mobility
• Program G-5: Tenant
Matching and Outreach
High

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Table 49: AFFH Actions Matrix
HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric Outreach – Low Priority
Program D-3:

Landlord Tenant
Mediation
Continue to utilize Santa Clara County’s
contract with a fair housing specialist to
provide fair housing and landlord/tenant
mediation services. Distribute information
about these services to tenants through a
variety of media and online outlets, namely
the Town website, the Los Altos Hills and
paper materials at the Town Hall.

Continuous and
Ongoing Town-wide
The Town will seek to increase
awareness and understanding of
fair housing through access to
and use of fair housing
resources.

Metrics include the following:
• Increase inquiries to fair
housing specialist for
information and referral
• Increase traffic and
downloads to the Town’s
housing website
• Provide fair housing
materials at Planning and
Development Services booth
at Town events at least once
a year
• Promote educational
materials and resources
through at least three
different mediums
(paper/hard copies, social
media, direct mailers, inperson events, website)
Program E-1: Fair
Housing Education
and Counseling
Provide education and literature on fair
housing, resolving disputes; providing Health,
Safety and Building referrals; distributing
landlord/tenant guidebooks printed by the
Department of Consumer Affairs; provide
Housing Choice Voucher Assistance referrals;
providing counseling and resolution of
housing discrimination complaints.

Continuous and
Ongoing Town-wide
Program F-3: Fair
Housing Outreach
and Enforcement
In coordination with program D-3 and E-1,
continue to provide fair housing enforcement,
landlord-tenant mediation, and fair housing
information to residents and property owners.

Advertise the Town’s fair housing specialist as
a resource to resolve disputes and reports of
discrimination.

Continuous and
Ongoing Town-wide

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HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric Program G-1:

Housing
Information
Continue to improve and expand the use of
the various media to inform and promote the
use of Los Altos Hills housing programs to its
residents and developers by creating a
dedicated webpage on the Town’s website.

Include the resources listed in G-3 on the
webpage, in addition to information about
new and existing residential units.

Establish webpage
within one year of
Housing Element
adoption
Town-wide
Program G-2: ADU
and SB 9 Education
Develop and implement a comprehensive
marketing program to advertise the ability of
homeowners to create ADUs and SB 9 units on
their properties. The Town will provide
pamphlets on the Town website and at Town
Hall with detailed information on the SB9, ADU,
and JADU processes.

Develop marketing
plan by Q1, 2024;
implement marking
program by Q1,
2025
Town-wide
Construction of 20 ADUs per year
throughout the planning period.

Construction of 32 SB 9 units
throught the planning period.

Disproportionate Housing Needs – High Priority
Program A-6:

Inclusionary
Housing Ordinance
Conduct an inclusionary zoning feasibility
study to identify appropriate inclusionary
requirements that will not constrain housing
production. Upon a demonstration of
feasibility, develop and amend the Zoning
Ordinance to establish inclusionary housing
requirements so that new developments
reserve up to 15 percent of the total units for
lower- and moderate-income households.

Within three years
of Housing Element
adoption
Town-wide
Completed feasibility study and
Zoning Ordinance amendment if
deemed appropriate
Program A-12:

Conversion to
Duplex or Triplex
To increase housing opportunity and mobility
beyond identified RHNA sites, the Town will
amend the zoning ordinance to allow existing,
conforming single family residences to be
Rezone by Q1 2027 Focused on areas of
high resource
Conversion of 50 single family
homes to duplexes or triplexes
throughout the planning period.

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HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric converted to up to three units (i.e., into a
duplex or triplex) in specific areas in the
current R-A zone that are in lower fire hazard
areas with adequate sewer and water service
availabilities.

Program B-9:

Reasonable
Accommodations
Procedure
The Town will adopt a clear and objective
procedure to follow for reasonable
accommodation requests for land use and
zoning decisions and procedures that ensures
that housing for people with disabilities is
attainable without discretionary review. The
reasonable accommodations procedure will
include procedures and findings to ensure
certainty and provide for clear decisionmaking standards for the process.

Within two years of
Housing Element
adoption
Town-wide Adopted Reasonable
Accommodations procedure
Program E-7: Senior
Center funding
Continue to provide financial support to the
Community Services Agency and the Los Altos
Senior Center for the provision of such
services as emergency assistance, nutrition
and hot meal programs, information and
referral, and senior care management.

Annually in the
budgeting process Town-wide Maintain or increase annual financial support Program F-6:

Participation in
Regional Housing
Mobility Efforts
The Town will participate and with regional
efforts to encourage housing mobility through
promotion of affordable units in a common or
countywide registry and other County
incentives, such as Santa Clara County
Housing Authority’s cash incentive for first
time HCV landlords, and mobility assistance.

Continuous and ongoing Town-wide
Promote available regional
resources to 10 households
annually.

Program G-3:

Source of Income
Within one year, conduct outreach to inform
residents of sources of income protection and
Within one year of
Housing Element Town-wide Conducted workshop within one year of HE adoption.

Town of Los Altos Hills Housing Element
Affirmatively Furthering Fair Housing 139
HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric Protection/Housing
Mobility
state rent control laws such as AB 1482.

Afterward, conduct outreach to inform
landlords and tenants of recent changes to
state law that prevent source of income
discrimination. Ensure that it is known that
HCVs are allowed to establish a renter’s
financial eligibility.

Adoption.

Afterwardcontinuous and ongoing
Access to Opportunity – High Priority
Program A-1:

Availability of
Adequate Sites for
New Housing for
Regional Housing
Needs Allocation
(RHNA)
Create an overlay zone to ensure that the
Town fully meets RHNA capacity within three
years of the adoption of the housing element,
including a buffer of 15% of the RHNA to
ensure adequate capacity.

As a part of the creation of an overlay zone to
meet adequate capacity, adopt a multi-family
housing zone that permits densities of at least
30 du/ac for at least 30 net developable acres.

By January 31,
2026, or as
required by state
law
RHNA sites
distributed in various
census tracts
throughout the Town
Creation and implementation of
multi-family housing overlay zone
Program A-6:

Inclusionary
Housing Ordinance
Conduct an inclusionary zoning feasibility
study to identify appropriate inclusionary
requirements that will not constrain housing
production. Upon a demonstration of
feasibility, develop and amend the Zoning
Ordinance to establish inclusionary housing
requirements so that new developments
reserve up to 15 percent of the total units for
lower- and moderate-income households.

Within three years
of Housing Element
adoption
Town-wide
Completed feasibility study and
Zoning Ordinance amendment if
deemed appropriate

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HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric Program A-12:

Conversion to
Duplex or Triplex
To increase housing opportunity and mobility
beyond identified RHNA sites, the Town will
amend the zoning ordinance to allow existing,
conforming single family residences to be
converted to up to three units (i.e., into a
duplex or triplex) in specific areas in the
current R-A zone that are in lower fire hazard
areas with adequate sewer and water service
availabilities.

Rezone by Q1 2027 Focused on areas of
high resource
Conversion of 50 single family
homes to duplexes or triplexes
throughout the planning period.

Program A-8:

Preapproved Plans
The Town will develop pre-approved, “model”
plans for ADUs that meet building and fire
codes, height and size requirements, including
designs that are ADA accessible.

The Town will work with the Santa Clara
County Housing Collaborative on the option of
creating a sub-regional program of preapproved ADU plans that are available to all residents and cities in Santa Clara County. The
Town may use models developed by other
cities.

The Town will require development of five or
more lots to include an ADU option in their
development.

Within two years of
Housing Element
adoption
Town-wide Adopted and available set of
“model” ADU plans.

Program F-1: PlaceBased Community
Improvements –
Streetscape and
Right of Way
Improvements
Develop programs and strategies to create
place-based improvements through
investments in the public right of way. Specific
actions include:
• Streetscape improvements adjacent to the
lower-income RHNA sites to ensure safe
Six to eight years
after Housing
Element adoption
RHNA Sites
Adopted programs and strategies
to pursue place-based
improvement son RHNA sites

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HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric pedestrian and transit access, where
applicable.
• Provide technical assistance to property
owners and future developers to assist in
the design of any required infrastructure
improvements
Program E-10:

Incentives for
Senior
Development
Create a set of incentives for development of
senior housing on RHNA sites zoned for multifamily development. Specifically, the Town will:
• Develop a process for expedited
review of senior housing projects
• Reduce parking standards for senior
housing projects
Biennially, contact developers to inform them
of the opportunity to develop senior housing
in the Town and help connect developers to
property owners to facilitate their
development.

Within two years of
Housing Element
Adoption; Biennial
outreach to
developers
RHNA Sites Adopted set of incentives for
senior housing.

Program G-3:

Source of Income
Protection/Housing
Mobility
Within one year, conduct outreach to inform
residents of sources of income protection and
state rent control laws such as AB 1482.

Afterward, conduct outreach to inform
landlords and tenants of recent changes to
state law that prevent source of income
discrimination. Ensure that it is known that
HCVs are allowed to establish a renter’s
financial eligibility.

Within one year of
Housing Element
Adoption.

Afterwardcontinuous and ongoing
Town-wide Conducted workshop within one
year of HE adoption.

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HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric Program F-3: Town
Affordable Rental
Unit Registry
Create a registry of affordable rental units as
the units are built. The Town will create a
webpage with information about the units and
advertise any vacant units.

Continuous and ongoing Town-wide Affordable rental unit webpage and registry.

Program F-6:

Participation in
Regional Housing
Mobility Efforts
The Town will participate and with regional
efforts to encourage housing mobility through
promotion of affordable units in a common or
countywide registry and other County
incentives, such as Santa Clara County
Housing Authority’s cash incentive for first
time HCV landlords, and mobility assistance.

Continuous and ongoing Town-wide
Promote available regional
resources to 10 households
annually.

Program G-5:

Tenant Matching
and Outreach
Developing materials for applicants who may
be seeking tenants for their ADUs, SB 9 units,
and any conversion units created through
Program A-12. These affirmative marketing
materials will include contact information for
housing service providers (such as the home
share programs) and non-profit housing
organizations. The Town will conduct a survey
of ADU tenants and owners to evaluate the
demographics of tenants to monitor the
success of ADU, SB 9, and unit conversion
programs.

By Q1 2025; ADU
Survey by Q1 2028 Town-wide
Construction of 32 SB 9 units
throughout the planning period.

Construction of 20 ADUs per year
throughout the planning period.

Achieve 50 percent of occupants
from outside Los Altos Hills,
including those who work but do
not live in the City.

Integration and Segregation – Moderate Priority
Program A-6:

Inclusionary
Housing Ordinance
Conduct an inclusionary zoning feasibility
study to identify appropriate inclusionary
requirements that will not constrain housing
production. Upon a demonstration of
feasibility, develop and amend the Zoning
Ordinance to establish inclusionary housing
Within three years
of Housing Element
adoption
Town-wide
Completed feasibility study and
Zoning Ordinance amendment if
deemed appropriate.

Town of Los Altos Hills Housing Element
Affirmatively Furthering Fair Housing 143
HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric requirements so that new developments
reserve up to 15 percent of the total units for
lower- and moderate-income households.

Program F-3: Fair
Housing Outreach
and Enforcement
In coordination with program D-3 and E-1,
continue to provide fair housing enforcement,
landlord-tenant mediation, and fair housing
information to residents and property owners.

Advertise the Town’s fair housing specialist as
a resource to resolve disputes and reports of
discrimination.

Continuous and
Ongoing Town-wide
The Town will seek to increase
awareness and understanding of
fair housing through access to
and use of fair housing
resources.

Metrics include the following:
• Increase inquiries to fair
housing specialist for
information and referral
• Increase traffic and
downloads to the Town’s
housing website
• Provide fair housing
materials at Planning and
Development Services booth
at Town events at least once
a year
• Promote educational
materials and resources
through at least three
different mediums
(paper/hard copies, social
media, direct mailers, inperson events, website)
Program G-3:

Source of Income
Within one year, conduct outreach to inform
residents of sources of income protection and
Within one year of
Housing Element Town-wide Conducted workshop within one year of HE adoption.

Town of Los Altos Hills Housing Element
Affirmatively Furthering Fair Housing 144
HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric Protection/Housing
Mobility
state rent control laws such as AB 1482.

Afterward, conduct outreach to inform
landlords and tenants of recent changes to
state law that prevent source of income
discrimination. Ensure that it is known that
HCVs are allowed to establish a renter’s
financial eligibility.

Adoption.

Afterwardcontinuous and ongoing
Program E-11:

Incentives for
Lower-Income
Housing
Development
The Town will amend the zoning ordinance to
adopt a set of density bonus incentives
beyond state law for ELI housing units.

Develop a program that would provide for
financial assistance for infrastructure studies
related to sewer and water improvements
necessary for affordable housing.

By Q3 2025 Town-wide Development of 62 ELI housing
units.

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Constraints on Housing
There are constraints from both the governmental and market sectors of the community that are capable of limiting efforts to maintain and provide housing. Such constraints should be addressed to provide new housing, particularly multifamily and affordable housing. Some constraints may be minor enough that market conditions are able to easily overcome problematic situations. Other types of constraints can be significant enough to discourage development altogether. Constraints fall into two general categories: governmental constraints and nongovernmental constraints.

Governmental Constraints
Governmental constraints can limit or deter the operations of the public, private, and nonprofit housing development sectors, making it difficult to meet the demand for housing and limiting supply in a region. Such constraints can result in limited access to housing mobility and housing choice and prevent lower-income segments of the population from having adequate housing opportunities. Governmental constraints may include, but are not limited to, land use controls, development standards, local procedures and processing times, and permitting fees.

In Los Altos Hills, governmental constraints include General Plan Land Use designations, zoning code provisions, enforcement requirements, processing and permit procedures, fees, and on-site and off-site improvement requirements. These constraints are discussed in this section.

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Land Use Controls
General Plan Land Use Diagram
Adopted in 2008, the Town of Los Altos Hills General Plan is a comprehensive, long-range general policy document that establishes the overall character and development patterns of

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the community. The Land Use Element of the General Plan provides a clear vision and intent to maintain the semirural character of the community.

There is one residential designation and four nonresidential designations in the Los Altos Hills Land Use Plan. The land use designations include the following:
▪ Residential (R): One primary single-family dwelling is allowed per parcel. In addition, one Accessory Dwelling Unit (ADU), one Senate Bill 9 (SB 9) unit, and a Junior Accessory Dwelling Unit (JADU) are all permitted by right. The Town adopted an Accessory Dwelling Unit (ADU) Ordinance in 2020 and a SB 9 Urgency Ordinance in 2021 to be consistent with the new requirements under state law allowing multiple units on residential lots. Agricultural activities and conditional uses such as religious facilities and schools may also be allowed. The Residential designation accounts for 93 percent of the total land use in Los Altos Hills.
▪ Institutional (I): This designation identifies academic, governmental, and community service uses and lands that are either publicly owned or operated by nonprofit organizations. Institutional land uses account for 2.7 percent of the total land use in Los Altos Hills.
▪ Open Space Preserve (OSP): This designation is applied to undeveloped natural areas that provide wildlife habitat, scenic views, and opportunities for nature study and lowimpact outdoor recreation such as hiking and horseback riding. The primary purpose of this designation is the preservation and enhancement of the natural state of the land and its plants and animals. Allowable development includes paths and trails, informational signs, restrooms, open fencing, parking for the use of open space and Public Recreation Areas (see designation below), and other incidental uses that are consistent with the protection of open space and the enjoyment of low-impact outdoor recreation. Open Space Preserve areas account for 3 percent of the total land use in Los Altos Hills.
▪ Public Recreation Area (RA-PB): This designation identifies publicly owned open space lands used primarily for recreation. Development related to recreation is allowed. Public Recreation Areas account for 0.3 percent of the total land use in Los Altos Hills.
▪ Private Recreation Area (RA-PR): This designation identifies privately owned lands used primarily for recreation. Development related to recreation is allowed. Private Recreation Areas account for 0.9 percent of the total land use in Los Altos Hills.

The Land Use Element creates constraints on housing production by limiting the densities for residential uses in the Town to one dwelling unit per parcel (irrespective of ADUs, JADUs and SB 9 units) and prohibits the Town from permitting multifamily housing projects.

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However, the Town is actively addressing this limitation and seeking to meet its RHNA by creating an overlay zone to allow for multifamily uses.

Zoning Ordinance
The Zoning Ordinance, Title 10 Zoning and Site Development of the Los Altos Hills Municipal Code, is the primary tool for implementing the land use designations assigned in the General Plan. The Zoning Code contains detailed development standards, land use regulations, and procedures to guide the growth of the Town in an orderly manner and preserve the health and safety of Town residents and improvements, as well as to protect the open and semirural residential character of the community. The code directly shapes the form and intensity of residential development by providing controls over land use, density, building heights, lot coverage, and floor area ratios, which regulate the bulk and mass of buildings on a site. While necessary to preserve the high quality of life in Los Altos Hills, the development standards contained in the Zoning Code limit densities and control building form and are potential constraints on new housing production.

Residential land uses are regulated through the creation of one residential zone district. This zone establishes Los Altos Hills as a transition area between the urbanized mid-peninsula and the open coastal mountain range. The residential land use zone description is as follows:
▪ Residential-Agricultural District (R-A) – The primary uses allowed are primary dwellings and agriculture operations, with a minimum lot size of 1 acre, although recent changes to State law (SB 9) now allow for the subdivision of most existing parcels in the Town into two lots through a ministerial approval process. Additional dwellings are also permitted by right, including ADUs, JADUs, and SB 9 units. All dwelling types may be custom built, or factory built, and objective design standards are applied to all ADUs and SB 9 dwelling units. Larger lot minimums may be imposed if it is determined that steep slopes (greater than 30 percent) exist on the land or other environmental constraints, such as creek corridors, wildlife habitat and heritage oak trees, dictate a larger lot to ensure environmental protection, avoidance of naturally occurring or man-made hazards, and/or implementation of the Town’s General Plan. Additionally, accessory uses, including home occupations, child daycare homes, private stables, pools, tennis courts, greenhouses, workshops, antennas and dish antennas, ADUs, transitional housing, emergency shelters, and temporary trailer coaches are also permitted in the R-A zone. In particular, emergency shelters as an accessory use are permitted without discretionary action and do not require a conditional use or other discretionary permit. Conditional uses are allowed subject to regulations and the City Council approval. Conditional uses include public libraries, churches, recreation facilities, temporary house trailers, public and private schools, public utility, and services uses, fire and police stations, Town facilities, and commercial stables.

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The land use controls and development standards for the residential districts are presented in Table 50, below. The R-A zone district creates an actual constraint on housing by prohibiting multifamily development, as well as requiring a minimum lot area of 1 acre. While the combined effect of the Town’s development standards creates constraints on housing production, the Town has still approved housing development projects at varied income levels in the form of ADUs. As part of Program A-1, the Town will amend the code with the creation of an overlay zone to accommodate multifamily housing.

Table 50: Town of Los Altos Hills, Residential Zone Standards Zone
District
Bldg.

Height
Lot
Width
(new
lots)
Minimum Yard Setback
Minimu
m Lot
Area
Parking
Spaces per
Dwelling
Unit
Front Side Rear
ResidentialAgricultural
(R-A)
27 feet 160 feet 40
feet
30 feet
(4 feet for
ADU and
SB 9 units)
30 feet
(4 feet for
ADU and
SB 9 units)
43,560
sq ft
4 spaces
(1 space for
ADU and
SB 9 units)
Minimum Lot Size
The Zoning Code specifies a minimum lot size for the single residential zone as being no less than 43,560 square feet (1 acre). Each lot shall contain a circle having a diameter of 160 feet inscribed totally within its net area. The 1-acre minimum lot size may prevent development on smaller lots otherwise suitable for housing, creating a potential constraint. Despite the minimum lot size, there are approximately 500 lots that are smaller than one acre in the Town. (sSee Appendix A: Lots < 1 Acre Subject to CDP). The Town has approved new homes and other accessory uses on eight lots between 2015-2022 through its CDP process. This includes new residences on lots that are 0.9, 0.42, and 0.963 acres in size. ADUs and SB 9 units are allowed on lots less than 1 acre in size.

The Town will address the constraints created by its minimum lot size by establishing a new multi-family overlay zone with a smaller minimum lot size as a part of Program A-1. This will create opportunities for a variety of housing and densities in the Town and allow for an increased variety of housing types.

The one-acre minimum lot size limits total housing supply in Los Altos Hills, thereby limiting variety of housing types, increasing the percentage of land as a cost of housing, and limiting housing choice based on cost and qualifying income. The Town is addressing these constraints directly by creating new multifamily zoning in three locations that has the potential for more than twice the total RHNA, and more than five times the lower-income household RHNA, and will increase the total housing units in Los Altos Hills by 33 percent.

The Town is also facilitating construction of smaller, more affordable, and more housing

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units by permitting, promoting, and incentivizing ADUs, SB 9, and conversion of existing single- family homes to duplexes and triplexes in specific areas in the current R-A zone that are in lower fire hazard areas with adequate sewer and water service availabilities. These changes will work to affirmatively further fair housing in the Town.

Height Limits
The Town has a maximum building height of 27 feet, to maintain a consistent, low profile that is compatible with the Town’s semirural character. Building height may be increased to a maximum of 32 feet if setbacks are increased, as specified in the Town’s Zoning Ordinance.

This 32-foot height limit does not limit the ability to achieve the maximum density in the R-A zone, which has a density of 1 unit per acre, and is not a constraint for building lower-density multi-family or affordable housing for densities up to 20 dwelling units per acre but would likely be a constraint for densities greater than 20 dwelling units per acre. The Town also has a special height limitation that states no structure shall exceed a height of 35 feet. The Town will address the potential constraints created by building height through its creation of an overlay zone, which will amend the Zoning Ordinance to ensure development standards like height limits do not inhibit the development of multifamily housing in multi-family zones.

Setbacks
All residential zones have setbacks, which are the minimum distances between a structure and a lot line. Setbacks in Los Altos Hills are compatible with the Town’s semi-rural character and lot size with 40-foot front setbacks from a road right-of-way or vehicular access easement, and 30-foot side and rear setbacks from the property line. ADUs and SB 9 units are permitted with a minimum 4-foot side and rear setback if the structures are 800 square feet or less. The setbacks are not a constraint that limit the development of single-family housing in the Town. While all setbacks reduce the amount of land that is developable on a site, the setbacks do not constrain projects from reaching the maximum density in the R-A zone but will be a constraint for building multifamily or affordable housing. As such, the Town will ensure that the new multifamily zone will not have setbacks that inhibit reaching the maximum density allowed by the zoning and general plan.

Maximum Development Area
The maximum development area (MDA) of a lot is that portion of a lot that may be developed with buildings and impervious surfaces (i.e., lot coverage), and which requires that the balance of the lot area be retained in an undeveloped or natural state. The MDA is based upon a relationship between the average slope of the lot and the lot’s net area. Within the context of the MDA, development includes the floor area of all primary and accessory dwelling units, other detached buildings, parking areas, patios, decks, walkways, swimming pools, tennis courts, etc. The MDA is typically 15,000 square feet on a relatively flat, 1-acre lot. The Town also allows development area credit of up to 50 percent of the surface area for

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the use of permeable materials. The Town will address the constraints created by its MDA with the Program A-1, which will have objective development standards that facilitate and promote multi-family development and allow for a greater MDA to accommodate multiple units on a property.

According to community outreach, the MDA formula is complex and challenging to navigate.

This poses an additional development constraint for anyone wanting to build on their property. The Town will address the constraints created by the MDA formula with the Permit Streamlining and Objective Development Standards Programs (B-1, B-4). These programs will establish and implement expedited permit processing for affordable housing projects, including projects that qualify for density bonuses as well as amend the Zoning Ordinance and Design Review Board handbooks to ensure development standards, design guidelines, and findings are objective, promote certainty in the planning and approval process.

Maximum Floor Area
The maximum floor area (MFA) is the maximum amount of floor area (building area, including each floor of a structure (basements not included), plus garages, carports, and other accessory structures) that may be developed on a lot. The MFA is based upon a relationship between the average slope of the lot and the lot’s net area. The MFA is typically 6,000 square feet on a relatively flat, 1-acre lot, which results in a floor area ratio (FAR) of

0.138 (13.8% lot coverage) which is low for residential development and but not a constraint for single family residential. This would be a significant constraint for multi-family development. The Town will address the constraints created by its MFA with Objective Development Standards Program (B-4), which will amend the Zoning Ordinance to ensure development standards like MFA do not inhibit the development of multifamily housing and allow for a greater MFA to accommodate multiple units on a property.

Lot Unit Factor
The Lot Unit Factor (LUF) is calculated by dividing the net area in acres of the parcel by the minimum average lot size that would be required for a parcel of average slope equal to that of the subject parcel, as determined by the following formula:
▪ For lots or parcels where the average slope is less than ten (10) percent, the LUF is equal to the net area of the lot or parcel.
▪ For lots or parcels with average slopes between ten (10) percent and fifty-five (55) percent, then: LUF = An [1-0.02143(S-10)]
The LUF and MFA work in concert to determine the development potential of a parcel in Los Altos Hills. This calculation has found to be complicated and subjective per community input.

This method for calculating floor area differs from neighboring jurisdictions and deters developers from becoming familiar with the formula and process resulting in a lack of

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housing development. Program B-14 Program will provide a simplified worksheet for LUF calculations for single family homes and configure a simple formula for lot area calculations for multifamily projects. This will help streamline and accelerate housing production by mitigating a potential constraint.

The Town has created an online interactive LUF, MDA and MFA calculation form and posted it on the Town’s website. This allows the public to more easily understand the Lot Unit Factor and works to minimize any constraint it may pose to development.

Estate Homes
There are additional development standards and requirements for Estate homes, which are buildings with a floor area totaling 10,000 square feet or greater, as set forth in Section 10-

1.202 of the Town Municipal Code. Additionally, the setback standards increase with the size of Estate homes, as shown in Table 51. The setbacks are not a constraint that limit the development of estate single-family housing in the Town. While all setbacks reduce the amount of land that is developable on a site, the setbacks do not constrain projects from reaching the maximum density in the R-A zone.

Table 51: Estate Homes Setbacks
Size of Building
Setback Requirements for Estate Homes
Front Sides and Rear
10,000—11,999 sq ft 44 33
12,000—13,999 sq ft 48 36
14,000—15,999 sq ft 52 39
16,000—17,999 sq ft 56 42
18,000+ sq ft 60 45
Parking
High parking requirements can reduce the potential land available for development and increase the cost of development. The provision of parking does not pose a significant cost for development in Los Altos Hills for the R-A zone due to the large minimum lot size. These standards for the R-A zone are summarized in Table 52 below. While these standards do not act as constraints in the R-A zone, requirements for four off-street parking spaces would potentially constrain multi-family development. By creating an overlay zone, the town will adopt much lower minimum parking standards for the future multifamily areas.

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Table 52: Parking Requirements
Land Use Type Required Off-Street Parking
Single-Family Residential
Each primary dwelling shall provide surfaced off-street parking facilities for a minimum of 4 cars, including a minimum of 2 covered parking spaces for each new primary dwelling.

ADUs and SB 9 Units 1 parking space per unit
Cumulative Effect of Development Standards
The cumulative effect of the development standards will not likely constrain the ability for developers to achieve densities on site development, which shows the Town has permissive standards for development of the R-A residential zone. However due to the R-A zone being the only residential zone, Los Altos Hills does not allow for a range of housing types and densities other than primary dwellings, ADUs and SB 9 detached units or duplexes. The Zoning Ordinance includes provisions to preserve existing housing and prohibit multi-family housing. There are opportunities to better facilitate new housing at higher densities by creating a new zoning designation that allows multi-family development. The Town will address the constraints created by some of the residential development standards with the Overlay Zone and Objective Standards Programs (A-1,B-4) to accommodate the 6th Cycle RHNA within three years of Housing Element adoption, or earlier as required by state law.

Density Bonus
The state legislature passed density bonus laws in 2018 and 2021. The Town will incorporate these provisions by amending the zoning ordinance to update density bonuses to meet current state requirements (Assembly Bill [AB] 2345, Senate Bill [SB] 1763, SB 1227) with the Density Bonus Updates Program (B-3).

Other Local Ordinances
The Town does not have any other locally adopted ordinances that directly impact the cost and supply of residential development. The Town has no growth control measures. Shortterm rentals are allowed in the Town and are required to obtain a Short Term Rental Permit.

There is currently one unit registered as a short-term rental. As there is only one unit that is a registered short-term rental unit, short-term rentals do not constitute a constrain on housing supply or residential development in the Town.

The Town is studying and adopting an inclusionary housing ordinance as a part of Program A-6. The Program includes conducting an inclusionary zoning feasibility study to identify appropriate inclusionary requirements that will not constrain housing production. The inclusionary requirements will reserve up to 15 percent of the total units for lower- and moderate-income households. The inclusionary requirements will be created in a manner that ensures they do not constrain the development or supply of housing.

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Providing for a Variety of Housing Types
Housing Element law specifies that jurisdictions must identify adequate sites to be made available through appropriate zoning and development standards to encourage the development of a variety of housing types for all economic segments of the population. This includes transitional and supportive housing, emergency shelters, low barrier navigation centers, multi-family rental housing, mobile home parks, manufactured housing, accessory dwelling units, and SB 9 units.

Accessory Dwelling Units
ADUs offer additional opportunities to provide housing for people of all ages and economic levels. ADUs may be an alternative source of affordable housing for lower-income and senior households. The Town allows and regulates ADUs and junior ADUs (JADU) in Title 10, Chapter 1, Article 14 of the Municipal Code. ADUs are permitted by right and reviewed ministerially, up to 800 square feet of floor area is exempt from the Town’s MFA and MDA standards, an ADU can be up to 1,200 square feet in area, and only one parking space is required. The Town recently completed an ADU ordinance update, sent it to the State for review, and is in compliance with current state ADU law. HCD provided its review and recommendations to Los Altos Hills by letter dated August 5, 2020. Staff presented an amended ordinance that incorporated HCD’s recommendations to City Council on August 20, 2020. The ordinance was most recently adopted on September 17, 2020. Due to the average large lot sizes in Town, there are generally no siting constraints on most properties. ADUs have been well received in the community and over the past three years, the Town has averaged over 20 ADUs per year. The Town will continue to encourage the development of ADUs to meet affordable housing options for residents.

Senate Bill 9 (SB 9) Dwelling Units
The Town adopted an Urgency Ordinance in 2021 (Title 10, Chapter 1, Article 15 of the Municipal Code) for the orderly subdivision and development of qualified SB 9 projects while ensuring that the new units are consistent with the semirural character of the Town and do not create any significant impacts with regards to public infrastructure or public safety. The regulations are established to implement the requirements under California Government Code Sections 65852.21 and 66411.7. The following objective standards and regulations apply to all new SB 9 developments on a parcel that is not being subdivided:
a) The following development is permitted on the parcel:
a. a primary dwelling unit and up to two SB 9 units;
b. an ADU; and
c. a JADU
d. No more than three detached dwelling units are permitted on the parcel.

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b) The maximum floor area (MFA) and maximum development area (MDA) permitted on the parcel shall be determined through the lot unit factor (LUF) number as defined in Section 10-1.202 of the Municipal Code, excepting that 800 square feet of additional floor area and development area beyond the MFA/MDA is permitted for an ADU and 800 square feet of additional MFA/MDA is permitted for an SB 9 unit that is not the primary dwelling.
c) The MFA of an SB 9 unit shall be 800 square feet. Basements and bunkers are not permitted.
d) The minimum setback for any new SB 9 dwelling unit shall be 40 feet from the front parcel line and 4 feet from the side and rear parcel lines. a. Exception: No setback is required for a new SB 9 dwelling unit constructed in the same location as an existing structure on the parcel. b. Incentive: If the SB 9 dwelling unit meets the 40-foot front yard and 30-foot side and rear yard setbacks, the MFA can be up to 1,600 square feet where 800 square feet is included in the MFA calculated pursuant to subsection (b) above (basement or bunker not permitted). The parcel owner utilizing this incentive shall record a deed restriction in a form approved by the Town’s Attorney’s Office stipulating that no further subdivision of the parcel is permitted. e) The maximum height of the SB 9 dwelling unit shall be 16 feet. f) One uncovered parking space, located a minimum of 40 feet from the front parcel line and 30 feet from the side and rear parcel lines, is required for each dwelling unit, except as provided in Section 10-1.1403(g)(3) of the Municipal Code or California Government Code Section 65852.21(c)(1)(A)(B). The parking space shall be at least 10 feet wide by 20 feet deep.
g) Driveway access to all new units shall be compliant with the Santa Clara County Fire Department standard details and specifications for driveways and turnarounds. h) The owner shall sign and record an affidavit placing a covenant that will run with the parcel to confirm that the owner will reside in either the primary dwelling unit or an SB 9 unit on the parcel for three years from the issuance of an SB 9 dwelling unit’s Certificate of Occupancy and closing of all construction permits pertaining to the parcel.
i) All newly created dwelling units shall be connected to public sewer or provide a private wastewater system that is fully contained within the parcel boundaries. j) All outdoor patios, covered patios, decks, and other hardscape shall meet the Town’s minimum 40-foot front yard and 30-foot side and rear yard setbacks.

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k) No dwelling unit shall be rented for a period of less than 31 days or occupied as a short-term rental unit, as defined under Section 10-1.1202. l) An SB 9 dwelling unit may be rented separately from the primary dwelling unit. a. Development projects pursuant to this section shall be subject to all impact or development fees related to the development of a new dwelling unit.

All SB 9 dwelling units and subdivisions are reviewed and approved without discretionary review or a public hearing and must meet the objective design requirements set forth in Article 15.

The Town’s current SB 9 ordinance requires that new units developed on new parcels (in event of a subdivision) be occupied by low- or very low-income households. This requirement is a constraint that would likely preclude the development of housing. Additionally, this requirement may be inconsistent with Government Code 65850.01(a) if the future parcel will be occupied by renters. This provision requires HCD review and Town demonstration that the affordability requirement will not unduly constrain the production of housing. The Town will modify its SB 9 ordinance to address this requirement (Program B-10).

The Town has already begun preparation of the permanent ordinance. The permanent SB 9 ordinance will be revised from the above standards listed above to remove unnecessary constraints on SB 9 unit development. The permanent ordinance will:
▪ Allow units larger than 800 square feet.
▪ Allow units of all income levels, rather than only affordable units. ▪ Allow a newly created SB 9 lot to be consistent with the constrained lot development standards.
▪ Allow a SB 9 lLot to propose a house up to a maximum of 2500 square feetsf above ground.

The permanent ordinance will be compliant with all applicable standards including Government Code Sections 65852.21 and 66441.7. Program B-10 includes the adoption of a revised SB 9 ordinance.

The Town is also including two other programs to facilitate and encourage SB 9 development:, an SB 9 education program (Program G-2) and a program to advertise vacant units to find tenants from the larger region (Program G-5).

Emergency Shelters
An emergency shelter is housing with minimal supportive services for homeless persons that is limited to occupancy of 180 days per calendar year or less by a homeless person. No individual or household may be denied emergency shelter because of an inability to pay.

Currently, emergency shelters are permitted as an accessory use in the R-A zone district

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without a conditional use or other discretionary permit consistent with Government Code section 65583. In light of the standards provided under Government Code section 65583(a)(4), the Zoning Code requires emergency shelters to meet the following criteria to:
▪ Be located within the Institutional land use designation areas (total of 6 parcels, 165.5 acres).
▪ Be located within 1,000 feet of a public transit stop; ▪ Be limited to the capacity required to meet community needs, as established by the most recent point in time count;
▪ Not exceed 5 beds;
▪ Be operated by a licensed social service provider with experience in managing or providing social services. The provider shall maintain one qualified on-site supervisor at all times.

Additional requirements for emergency shelters include a management plan to address compliance with the foregoing, site security, case management procedures, length of stay, in-take requirements, facility operation standards, parking, hours of operation, services provided, neighborhood relations, monitoring and oversight program. The plan requires approval by the Planning Director prior to operation of the emergency shelter.

As part of Program E-2, the Town will amend its Zoning Ordinance (Section 10-1.702.j) to ensure compliance with State law AB 139 to include the following:
▪ Remove the requirement that an emergency shelter must be located within 1,000 feet of a public transit stop;.
▪ Require that parking requirement are solely based on staff level. ▪ Ensure that all standards that apply to emergency shelters are objective.

There are substantial amounts of available land with the Institutional Land Use designation available to provide housing for the number of unsheltered persons identified in the most recent PITC (2). At 200 square feet per bed, two beds could be accommodated in one facility, totaling approximately 400 square feet of floor area to accommodate the Town’s estimated unsheltered need.

Outside of the sites inventory, the Town has multiple Town-owned sites, many of which are vacant and underutilized and could be converted to emergency shelters via adaptive reuse:
▪ Town-owned underutilized: approximately 3 parcels/10.8 acres ▪ Town-owned vacant: approximately 1 parcel/1.4 acres

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Furthermore, three of the sites are smaller parcels between 0.6 and 2.1 acres, which allows for greater feasibility to establish a small shelter. The Town has sufficient properties in the R-A zone to accommodate its unsheltered homeless population.

There is more than 10 acres of available vacant or underutilized land (such as parking lots) on multiple sites that would be appropriate for emergency shelters. Town standards do not preclude the development of an emergency shelter, but can be further revised to allow emergency shelters as a primary use and to better align with objective standards criteria outlined under state law.

The Town will address the constraints created by its emergency shelters requirements by amending the Zoning Ordinance provision permitting emergency shelters (Program E-2), to comply with Government Code Section 65583(4)(a), including provisions allowing emergency shelters as a primary use.

Low Barrier Navigation Centers
Low barrier navigation centers (LBNC) are service-enriched shelters that are focused on moving individuals into more permanent housing. LBNCs provide temporary housing while case managers connect individuals experiencing homelessness to shelter, public benefits, and health services. Under the Housing for Homeless Act (2019), local governments are required to allow LBNCs by-right in areas zoned for mixed uses and nonresidential zones that permit multifamily uses.

Los Altos Hills does not currently explicitly allow LBNCs in the R-A zoning district, though this would not prevent their development if an application for one were received. The Town will amend its Zoning Ordinance pursuant to Government Code Section 65583 to allow for LBNCs by-right in areas designated for public or institutional use in the R-A zone.

Manufactured Homes
Manufactured homes are often significantly less expensive to build than homes constructed on-site, making them more affordable to moderate and lower-income households. Los Altos Hills allows the placement of manufactured homes in all residential areas, however due to the large sizes lots and value of the land, most development consists of on-site single-family homes. All manufactured homes on permanent foundations are treated as single-family homes and consistent with Government Code Section 65852.3.

Mobile Home Parks
There are no mobile home parks in the Town, and mobile home parks are not allowed in the RA zone. The development of a mobile home park in the Town is unlikely due to market conditions and high cost of land. The lack of zoning for mobile home parks poses a potential constraint on development; however, local knowledge indicates it does not provide an actual constraint on development or the ability to provide a variety of housing type in the Town. A

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single mobile home is allowed on a lot in the RA zone as long as it is on a permanent foundation.

Multifamily Rental Housing
The Town does not currently have any multifamily zones and as such there are few multifamily rental options in the Town. Rental housing stock in the Town is primarily provided through ADUs. The Town is including Program A-1 to create an overlay zone on parcels to allow for multifamily development, including multifamily rental housing.

Single Room Occupancy (SROs)
The Town does not explicitly allow or prohibit SROs. There is precedent for their allowance on religious or institutional facilities in the Town. There are two existing facilities, the Poor Clares Monastery and Daughters of Charity property, that function as SROs in the Town. The Town is including Program E-9 to ensure that SROs are allowed on public and institutional land uses, permitted as an accessory use in new multi-family zones, and to implement a code amendment to create objective standards and further encourage the development of SROs in the Town.

Farmworker/Agricultural Employee Housing
The current zoning code is not in compliance with California Government Health and Safety Code sections 17021.5, 17021.6, and 17021.8 of the Employee Housing Act with regard to farmworker and employee housing standards. The Town is including Program E-8 to define and permit employee housing in compliance with the Employee Housing Act and revise the zoning code to allow farmworker housing in all agricultural zones throughout the Town.

Transitional and Supportive Housing
The Town adopted a Traditional and Supportive Housing Code (Section 10-1.702 of the Municipal Code) that permits transitional housing and supportive housing facilities within the R-A zoning district by-right, meaning they are not subject to approval of a conditional use permit. In accordance with the California Health and Safety Code, employee housing occupied by six or fewer employees in a single-family structure is treated the same as any other single-family dwelling in the same zone.

As a part of the Supportive Housing Program (E-4), the Town will review standards for:

1. community care facilities for six or fewer persons to clarify and permit unlicensed facilities where required by state law;

2. community care facilities of seven or more persons to develop objective standards that provide clarity and certainty to mitigate constraints on community care facilities; and

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3. transitional and supportive housing to develop objective standards that provide clarity and certainty for such facilities to mitigate constraints on transitional and supportive housing as required by state law.

Development Review and Permitting Procedures
The efficiency and timing of a jurisdiction’s processes for review and approval of residential development has a significant impact on the amount and pace of housing construction. The procedures for development review and permitting in the Town of Los Altos Hills are described below.

Permit Processing Procedure
The requirements of the permit processing procedure have the potential to act as a constraint to the development of housing. The time and uncertainty of the review of the revision cycle can contribute significantly to the overall cost of the project, ability to obtain and maintain funding, and the cost of each dwelling unit. Certainty and consistency in permit processing procedures and reasonable processing times are important to ensure that the developmental review and approval process does not act as a constraint to development by adding excessive costs or discouraging housing development. It should be noted that a new primary residence in the Town of Los Altos Hills typically ranges from 4,000 to 10,000 square feet in floor area and construction costs generally exceed $3,000,000. The site development review process for primary dwellings is not the same as for ADUs and SB 9 units, which are reviewed ministerially.

The site development process road map for a primary residential dwelling includes the following steps:

1. Initial Information Meeting: Residents and their project representatives should familiarize themselves with the Town Zoning and Site Development Code and policies.

The documents are available on the Town website or at Town Hall. It is also suggested that residents and/or their project representatives make an appointment to consult with the Planning and Engineering staff regarding potential development requirements and issues.

2. Pre-Application Meeting (Checklist): Prior to submitting a formal application, it is recommended that a Town planner preliminarily review project plans. Based on the information presented to the planner, a checklist of required items needed for application submittal will be completed. At this meeting, the applicant will also receive a Site Development Application form and handouts to aid them in the process of preparing the submittal requirements and project plans.

3. File Application: Applicant will submit materials and fees with a check payable to the Town of Los Altos Hills. Allow 30 days for the initial application review. Within that 30-

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day time period, staff will either provide a Pre-Application Checklist or a comment letter describing whether the application has been deemed complete. An assigned planner will meet with the applicant and architect to discuss the project review comments from the various departments and consultants. When a new residence and/or major addition project has been submitted there is a 30-day review period.

The applications are reviewed, when appropriate, by the following:
o Town and Other Agency Staff
▪ Planning and Engineering Departments
▪ Town Geologist
▪ Santa Clara County Fire Department
▪ Santa Clara Valley Water District
▪ County of Santa Clara - Health Department
o Town Committees
▪ Environmental Design and Protection Committee
▪ Open Space Committee
▪ Pathways Committee

4. Comment Letters, Revisions: Town staff will compile the comments and/or requirements from the reviewing departments, agencies, and Town committees, and prepare a comprehensive comment letter to send to the project applicant and/or owner. The Town also provides one or more comment letters describing whether the application complies with applicable Town development standards and regulations within 30 days from an application being deemed complete, or at the same time that the application completeness determination is made. The applicant will need to respond to the comments by revising the plans and/or providing additional information and resubmit for staff to review.

5. Story Poles & Public Hearing Notices: Once a project is deemed complete and is required to have a public hearing, staff will inform the applicant that story poles shall be constructed. Public hearing notices will be sent out once story poles have been completed and inspected by Staff. Public notices are sent out on Fridays and resulting in a hearing 10 days later.

6. Public Hearing (FT or PC): Public hearings for Site Development and Fast Track hearings are held once a week (as needed) in the Council Chambers starting at 10:00 a.m. on Tuesdays. The applicant may submit for a building permit once all required conditions have been fulfilled and the appeal period has lapsed.

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7. Approved/Denied:
a. Approved: The applicant may submit for a building permit once all required conditions have been fulfilled and the appeal period has lapsed. Any interested party may appeal the decision of the Staff Committee and/or Planning Commission to the City Council by filing a written notice of appeal with the City Clerk within 22 days of the decision for Fast Track and Planning Commission projects and 10 days of a Site Development project. An application, nonrefundable filing fee and a deposit for services shall accompany each appeal.
b. Denied: Any interested party may appeal the decision of the Staff Committee and/or Planning Commission to the City Council by filing a written notice of appeal with the City Clerk within 22 days of the decision for Fast Track and Planning Commission projects and 10 days of a Site Development project. An application, nonrefundable filing fee and a deposit for services shall accompany each appeal.

8. Building Permit: For each project, the assigned planner will prepare a list of conditions of approval, with certain conditions that must be satisfied prior to submitting plans for building permit plan check. Once the conditions of approval have been reviewed and approved by the corresponding department and the appeal period has expired, construction plans may be submitted to the Building Department.

Applicants should contact the Building Technician or Inspector the requirements for building permit issuance anytime during the planning review.

9. Appeal: Any interested party may appeal the decision of the Staff Committee and/or Planning Commission to the Council by filing a written notice of appeal with the City Clerk within 22 days of the decision. A nonrefundable filing fee and a deposit for services shall accompany each appeal, except that any Council member may file an appeal without payment of a fee.

The review process for ADUs and SB 9 units is ministerial. Planning reviews the dwelling at a pre-application meeting where staff confirms that the dwelling meets the adopted objective standards in the municipal code. Following that meeting, the applicant submits a Building Permit application. There is no appeal of the building permit.

Under current zoning code requirements, all single-family residential developments are required to obtain a site development permit and generally may be reviewed and approved in one fast-track/planning commission public hearing. Residential projects are required to comply with development standards such as setback, maximum development/floor area requirements, and height. The Town does not conduct design review separately and does not impose discretionary design review standards. For projects proposed on lots less than

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one acre or those that do not comply with development standards, a conditional development permit or variance would be required pursuant to a public hearing before the Planning Commission. In either situation, it generally takes one hearing for a new residence to be approved. No findings of approval are required for fast-track/planning commission site development permit approvals.

The Town has proposed a program to initiate the zoning amendments to create a new multifamily zone with objective development standards and design guidelines (Program A1). Multi-family zoning districts will provide a streamlined approval process for projects that are consistent with objective development standards and design guidelines. All projects with affordable housing will receive expedited approval under Program B-1.

Grading Policy
Municipal Code Section10-2.404 limits grading operations during the “wet season”, which is defined as the period from October 1st to April 30th. The City Engineer may allow grading during this time only if the grading technique is determined to minimize risk. The City Engineer may also prohibit grading following a twenty-four hour period in which one-half inch or more of rain has fallen. This policy may unnecessarily restrict suitable grading projects and creates a level of subjectivity in determining grading allowances. While the City Engineer does issue permits during the rainy season, this policy could overly limit housing production to six months out of the year which is a constraint for anyone that wants to build on their property during the restrictive months. Program (B-11) will amend the municipal code 10-2.404 to allow issuance of grading permits year-round.

Story Pole Policy
Town policy requires new primary residences and major additions (over 900 square feet in floor area) to be staked on site and that story poles and netting be put up to help provide the decision-making body a visual tool to evaluate the proposed project. ADUs and SB 9 units do not require story poles as they are ministerial, and no public review is required.

The cost of story poles is does not add significantly to development in the Town. Story poles cost from $2,000 to $4,000 dollars along with a nominal rental fee. They do not constrain the supply of housing, cost, or timing and ability to achieve maximum density on lots. The Town typically requires Story Poles to be up 10-day before a public hearing. Story poles are conducted concurrently within the required review process and do not extend time, their cost is relatively small in comparison to full entitlement and construction costs. After analysis of recent projects, story poles have not resulted in any denials, delays, or significant costs as costs reflect a fraction of a typical entitlement and therefore do not pose as a constraint to development. Story poles are not anticipated to be required for multifamily developments in the Town.

Story poles are required to be used for the following applications:

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▪ New residential and nonresidential buildings.
▪ Residential second-story additions.
▪ Additions exceeding 900 square feet and any increases in roof height. ▪ Accessory structures (exceeding 900 square feet).
▪ Driveway entrance modifications, sports courts and pools (outlined with stakes and ribbon at ground level).
▪ Open space easements.
▪ Trees proposed to be removed (marked with ribbons or tags or some type of obvious marker).

The Town is including Program B-16 develop a process to streamline the story pole requirement or will allow a rendering to be provided in lieu of Story Poles.

Permit Processing Time
The processing time needed to obtain development permits and required approvals can act as a constraint to development and contributes to the high cost of housing. During the outreach process, the permit processing time and lack of a permit tracking system was identified as a constraint to developers and homeowners looking to build in Los Altos Hills.

The length of permit processing time for various permits is shown in Table 53. The Town of Los Altos Hills recently adopted a new project tracking and management system and is currently training city staff to ensure it meets is it used and implemented efficiently. Program (B-1) will aim to improve the permitting process by creating a streamlined process for permit approval.

Staff evaluated building permit applied and issued in years 2021 and 2022, and half of the permits received approval in 2 to 6 months timeframe. This is an expeditious process given that permit applications are reviewed by Town and outside agencies including the County fire department and health department for on-site septic systems proposed. At times, the permit review and issuance are delayed for some projects due to review needed by such outside agencies; however, the Town has taken steps to review and improve the process in coordination with outside agencies in reduce any hindrances on housing construction. To illustrate, in recent months the Town has coordinated/worked with SCCFD to improve the Alternate Materials, Methods of Construction (AMMR) approval from the Fire Department.

Table 53: Permit Processing Time & Level of Review
Permit Type Length of Approval (Typical) Approval Body
Site Development Permit –
Administrative Review 4 to 6 weeks Staff

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Permit Type Length of Approval (Typical) Approval Body
Site Development Permit –
Public Hearing
8 to 12 weeks Planning Director/Staff
Committee
Site Development Permit –
Fast Track (new Primary
Residence)
10 to 14 weeks Planning Director/Staff
Committee
Site Development
Permit/Variance/Conditional
Use – Planning Commission
12 to 16 weeks Planning Commission
Building Permit - ADU or SB 9
Units – Ministerial 4 to 6 weeks Staff
Building Permit – New Primary
Residence - Ministerial 6 to 10 weeks Staff
Source: Town of Los Altos Hills
A review of recent approval times for single-family residential and accessory dwelling unit applications from 2010 to 2021 (165 applications) show an average elapsed time to complete the application process to building permit issuance of 423 days. The median length of approval time from application to entitlement is 144 days or 21 weeks, showing a minimum of 31 days and a maximum of 1,100 days. In addition to this, the average time from building permit issuance to final occupancy for ADU’s is 585 days. Of the reviewed entitlements, four have been either delayed or their building permits have expired. Figure 41 shows the total time from application submittal to entitlement (200 days), from entitlement to building permit application (394), and from building permit application to issuance.

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Figure 41: Application to Building Permit Issuance
Source: Town of Los Altos Hills
The total time from submittal to entitlement was not too long in most cases and did not appear to be delayed by the sub-committees. A review of recent entitlements found that approximately 80% of new residential projects go through the Fast Track process. The Planning Director has the discretion to apply the fast track approval to any site development application specified for Planning Commission review if the project conforms with the Town’s codes and polices. The current permitting process has not been found to have affected housing prices, stock, or feasibility of meeting maximum allowed density of recent developments in the Town. Nonetheless, Program B-15 proposes to limit the time for subcommittee review and comment period to a single review totaling 30 days from submittal of a complete application. To add further certainty to the approval process, program B-4 has been developed to create objective design standards for the committees to consider in their review.

Planning and Building Fees and Development Impact Fees
The Town conducted a user fee study in 2019–2020 and recently adjusted its planning, building, and engineering fees based on the results of the study. The review of development fees is conducted to ensure that the fees charged cover the cost of delivering services but do not exceed that cost. Pursuant to California Government Code section 65940.1(a)(1), current schedules of fees, zoning, and development standards are available on the Town’s website.

Building permit fees in the Town are based on the proposed construction cost. There is a $240 base fee for all projects. Building Permit and Mechanical and Plumbing fees are each 200
394
103
-
50 100
150
200
250
300
350
400
450
Total Entitlement Period Days Entitlement to Building Permit Application
Total Building Permit Time
Days on Average

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set at 0.9% of the project construction cost provided by the applicant. The plan review fee is 65% of the permit fee. Combined with other relatively small, fixed fees, these average about

3.2% of the construction cost.

Table 54: Related Fees and Deposits for Typical New Primary Residence Applications Fee
Site Development Permit Fee (Minor
Administrative) $1,560
Site Development Permit Fee (Major
Administrative) $3,010
Site Development Hearing Review $4,160
Fast Track Hearing Review $4,880
Geotechnical Review Deposit (if required) $2,000
Building Permit Fee Varies based on project valuation
Building Plan Check Fee Varies based on project valuation Pathway Fee $10,943
Storm Drain Fee (varies, $0.69 per square foot
times impervious surface) $6,750
Sewer Connection (up to 60 fixture units) $11,236
Encroachment Permit $326
Source: Cities Association of Santa Clara
A summary of housing constraints data was collected through a county-wide survey, Table 55 shows the regional fees comparison between Los Altos Hills and the neighboring communities within Santa Clara County for building and processing single family home permits. Because the fees in Los Altos Hills vary based on the project valuation, a direct comparison of fees between the Town and the region may not be appropriate. Entitlement fees vary throughout the region. The Town has similar entitlement fees to the cities of Campbell, Cupertino, and Gilroy. Impact fees also vary widely in the region, ranging from zero to over $100,000. The Town’s impact fees are the median in the region, with six jurisdiction having higher fees and six having lower or no impact fee. The combined percentage of total project costs is comparable to other cities in the region. Entitlement and building permit fees are high compared to other jurisdictions in Santa Clara County, building permit fees being nearly twice as much as the next highest jurisdiction in Campbell. However, as a percentage of the housing construction costs, the fees are comparable. The high fees are an additional constraint on housing development. Through Program (B-13) the Town will conduct a fee nexus study to evaluate the fees that are charged during the development process.

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Table 55: Fees for Single Family Residence - Regional Comparison Jurisdiction Entitlement
Fees
Building Permit
Fees Impact Fees % of Dev. Costs
Los Altos Hills* $4,880 $95,652 $33,092 2.8%
Campbell $4,062 $43,300 $25,194 2.6%
Cupertino $5,271 $18,179 $113,146 2.9%
Gilroy $4,747 $11,105 $53,367 1.5%
Los Gatos $11,202 $16,718 $4,538 1.2%
Milpitas $17,360 $23,110 $0 2.8%
Monte Sereno $2,900 $16,928 $7,894 0.7%
Morgan Hill $0 $13,760 $42,143 2.0%
Mountain View $0 $14,720 $71,347 3.3%
San Jose $312 $9,607 - 0.4%
Santa Clara $1,816 $13,675 $56,543 2.6%
Saratoga $7,811 $35,033 $21,428 1.4%
Sunnyvale $456 $14,322 $99,268 4.8%
Unincorporated
County $10,984 $14,182 - 0.9%
Source: Cities Association of Santa Clara: Town of Los Altos Hills *Fixed and proportionate fees based on example $3,400,000 construction cost and 7,000 sf structure.

Impact Fees
The Town of Los Altos Hills charges three impact fees to ensure that new residential development pays its fair share of funding for its impact to the Town’s services, facilities, and infrastructure. Housing development in Los Altos Hills is subject to the following impact fees:

1. Pathway Fee ($53.00 per linear foot of the average width of the property ) – A pathway fee is required for a main residence, an accessory dwelling unit, an addition to a structure of at least nine hundred (900) square feet of “habitable” floor area (including cumulative additions of nine hundred (900) or more square feet of habitable floor area), or a barn or stable for equestrian use of at least nine hundred (900) square feet in floor area. As noted in the Fee Schedule, this fee was waived for accessory dwelling units for the 2015-2023 cycle ending January 1, 2023. This fee waiver will be extended through the next planning period of 2023-2031.

2. Recreation In-Lieu Fee (Municipal Code Section 9-1.1403) - Every subdivider shall be required to dedicate a portion of land, or pay a fee in lieu thereof, or a combination of both, at the option of the Town for the purpose of providing park and/or recreational space/facilities. Such fee shall be in an amount equal to the fair market value of the amount of land which would otherwise be required to be dedicated.

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3. Storm Drainage Fee ($0.69 per sq ft) - Assessed on all subdivisions for new hardscape/impervious area added within a public right-of way or easement.

A single family development in Los Altos Hills of about 5,000 sf with a 1,000 sf garage (two stories with four bedrooms and three baths) on average would have an estimated total impact fee (excluding school fees) of approximately $11,514.

Currently there is no fee schedule for multi-family developments but applicable fees will be determined in response to this Housing Element’s addition of a multi-family zone.

School District Fees
Local school districts charge a fee per square foot of new development that must be paid prior to the issuance of building permits. The purpose of the fee is to compensate serving school districts for the costs associated with the demand for additional services and classroom space generated by new residential development. The three districts that collect fees in the Town are the Los Altos School District, which levies a fee of $2.72 per square foot for residential construction; the Mountain View-Los Altos High School District, which levies a fee of $1.36 per square foot for residential construction in the Town; and the Palo Alto Unified School District, which levies a fee of $3.79 per square foot for residential construction in the Town.

School district fees are not imposed by the Town. They increase the cost of development and may act as a potential constraint to development, and the Town has no control over their imposition or rates. The school impact fees are included in the total costs for Los Altos Hills in the table of fees for single family residences above.

Housing for Persons with Disabilities
The US Census Bureau defines persons with disabilities as those with a long-lasting physical, mental, or emotional condition. Certain conditions affect a person’s housing choices, whether it creates a need for accessibility, living spaces for caretakers, or transit access.

Group Homes
State law requires that residential care facilities serving six or fewer persons shall not require a conditional use permit, zoning variance, or other zoning clearance. The Town’s Zoning Ordinance Section 10-1.702.h currently permits residential care facilities serving six or fewer person by-right as an accessory use in the R-A zone. In addition, the Town does not have siting, separation, or separate parking requirements for licensed residential care facilities and special needs housing developments.

Definition of Family
The Town’s Municipal Code Section 10-1.202 defines family as “one person or two (2) or more individuals living together in a dwelling, sharing household responsibilities and activities, and

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having close social or economic or psychological commitments to each other.” This definition is inclusive and non-discriminatory and is consistent with state law and does not pose a constraint on the development of housing for persons with disabilities. The reference to “close social or economic or psychological commitments to each other” is subjective and unnecessary. This phrase will either be revised or removed to remove any subjective judgements which could restrict unrelated persons within the same household. (Program B4).

Reasonable Accommodation Procedure
The Town does not have a codified process for reasonable accommodation. However, the Town has conducted a review of zoning and building code requirements, and has not identified any barriers to the development, maintenance, or improvement of accessible housing. Due to the large lots and ample setbacks of single-family homes in town, most if not all accessibility modifications can be accommodated through a simple remodel permit.

Handicap-accessible ramps and guardrails are permitted to intrude into the standard setbacks required under zoning to allow first-floor access for physically disabled residents.

The Town has not developed procedures for reasonable accommodation requests with respect to zoning, permit processing, and building laws. While the Town complies with the intent of reasonable accommodation requirements, as a part of the Housing Element implementation, the Town will establish a codified reasonable accommodation procedure and standards to better facilitate objective review and approval of any future accommodation requests (Program B-9).

Code Enforcement
The Town’s Code Enforcement staff responds to potential violations of the Los Altos Hills Municipal Code. There is one code enforcement officer. Code enforcement is reactive, and officers respond to complaints reported by residents. Common violations include property and maintenance concerns, land use/zoning permits, and illegal tree removal.

The Town has adopted the 2022 editions of the California Building, Fire, Plumbing, Mechanical, Electric, and Health and Safety Codes. Local amendments include adopted Reach Codes for low rise residential building. The adopted Reach Code requires all new construction to be fully electric, with the exception of cooking appliances and outdoor cooking, fireplaces, and pool/spa heating, and be electrical vehicle ready. Reach codes establish higher standards for new construction to provide environmental and health benefits to the community and do not pose a significant cost constraint or impede housing development.

On- and Off-Site Improvement Requirements
The Town requires on-site improvements for new developments, which are intended to meet health and safety requirements of the community. Residential developers are responsible

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for constructing road, water, sewer, and storm drainage improvements on new housing sites. The Town’s Site Development Ordinance includes standards and requirements relating to grading, drainage and erosion control, siting, landscaping, driveways, preservation of ridgelines, implementation and maintenance of the Master Path Plan through the pathway fee, and outdoor lighting. Specifically, on-site improvements include infrastructure connections for water and/or sewer as necessary. There are no other on-site or off-site improvements required by the Town.

These requirements are similar to those of other jurisdictions and are not considered a constraint on development.

Nongovernmental Constraints
Requests to Develop Below the Anticipated Density
Requests to develop housing at densities below those anticipated in the Housing Element act as a potential constraint to housing development. Over the last housing cycle, the Town received 0 requests to develop below densities due to the low densities of single-family homes. The Town met its allocated 5th Cycle RHNA through its development of 94 ADUs from 2017 to 2021.

Land Costs
Land costs have a demonstrable influence on the cost and availability of affordable housing.

Land prices are determined by numerous factors, most important of which are land availability and permitted development densities. As land becomes less available, the price of land increases.

In Los Altos Hills, proximity to the employment centers of Silicon Valley, large semi-rural lots, and the scarcity of adequate housing opportunities in northern Santa Clara County have influenced pressure on land and housing costs. Table 56 shows the comparison between land value of Los Altos Hills and neighboring communities in Santa Clara County.

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Table 56: Single-Family Land Sale, up to 1 Acre, Last 3 Years City Data Points Average / sq ft Average / SingleFamily House Los Altos Hills 1 $99 $3,995,000
Los Gatos 15 $50 $716,237
Morgan Hill 11 $79 $490,533
San Jose 54 $150 $949,380
Campbell 8 $194 $975,00
Mountain View 3 $163 $1,500,000
Santa Clara 1 $169 $1,275,00
Sunnyvale 3 $328 $2,725,000
Cupertino 4 $185 $2,030,500
Monte Sereno 2 $534 $2,285,107
Saratoga 5 $93 $2,386,000
Palo Alto 7 $323 $2,965,000
Los Altos 5 $235 $3,723,600
Totals/Range 119 $157 $1,320,556
Source: Century Urban, 2022. citiesassociation.org/documents/development-cost-data.

According to online listings from Zillow.com, in March 2022, 21 vacant residential parcels were listed for sale in the Town. These vacant parcels ranged in price from $3,360,000 to $8,750,000. Recent vacant land sold is shown by cost and acreage in Table 57. The price of land varies depending on several factors, including size, location, and access to utilities. The asking price for available land ranged from $18.41 to $565.09 per square foot, with an average price of $116.47 per square foot (or $5.3 million per acre).

The cost of land is very high and creates a constraint on the feasibility of housing projects to provide housing for anyone other than very high-income households. The Town will address the constraints created by the high land costs with the Overlay Zone Program (A-1) to identify sites to allow multi-family development. The increased density will reduce per unit land costs.

Sites identified for multi-family housing will include vacant and institutional properties that are already partially developed, have access to the requisite infrastructure, road and freeway access, and vacant or underdeveloped land that can be developed cost effectively.

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Table 57: Recent Vacant Lot Sales in Los Altos Hills
Acreage Land Cost Cost Per Sq Ft Date Sold

0.13 $3.2 million $565.09 3/18/2022

2.67 $4.1 million $35.25 3/17/2022

1.6 $6.2 million $22.96 3/08/2022

1.5 $4.3 million $65.81 2/17/2022

1.08 $3.8 million $86.54 2/11/2022

1.44 $4 million $63.77 10/28/2021

0.81 $8.75 million $247.99 9/20/2021

4.19 $3.36 million $18.41 4/22/2021

4.2 $5.1 million $27.88 1/29/2021

2.4 $5.1 million $48.78 1/29/2021

0.93 $4 million $98.74 1/22/2021
Source: Zillow, 2022.

Construction Costs
Construction costs include the cost of materials and labor. Materials costs include the cost of building materials (wood, cement, asphalt, roofing, pipe, glass, and other interior materials), which vary depending on the type of housing being constructed and amenities provided. In general, construction costs can be lowered by increasing the number of units in a development, until the scale of the project requires a different construction type that commands a higher per square foot cost.

One indicator of construction costs is Building Valuation Data, compiled by the International Code Council (ICC). The unit costs compiled by the ICC include structural, electrical, plumbing, and mechanical work, in addition to interior finish and normal site preparation.

According to a ProMatcher Cost Report for Santa Clara home construction costs range from $142.08 - $210.96 per square foot.15F15F
17 Financing Availability
Interest rates affect homeownership opportunities throughout the Town. In July 2022, Freddie Mac’s primary mortgage market survey listed interest rates on home loans at 5.51% percent on a 30-year fixed-loan rate. While low interest rates are expected to prolong the availability of financing, low housing inventory can create competition among potential homebuyers, especially for first-time homebuyers. The sales price of housing is typically 17 https://home-builders.promatcher.com/cost/santa-clara-ca-home-builders-costs-prices.aspx

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adjusted for changes in mortgage rates. The Housing Trust of Silicon Valley administers the Santa Clara County Empower Homebuyers First Time Homebuyer Loans and HELP for Homebuyers programs.

Table 58: Disposition of Home Loans - Santa Clara County, 2020 Loan Type Total
Applicants
Originated Approved Not
Accepted Denied Withdrawn / Other
Conventional
Purchase 24,691 15,660 644 1,942 6,445
Government Backed
Purchase 1,879 986 71 138 684
Home Improvement 5,206 2,998 165 961 1,082
Refinance 41,117 21,078 1,208 5,930 12,901
Total 72,893 40,722 2,088 8,971 21,112
Source: lendingpatternslite.com, 2020
Federal and State Programs
The Town participates with Santa Clara County as part of the Urban County Program for federal Community Development Block Grant (CDBG) and HOME funds. The CDBG program aims to support activities that benefit low-income households, aid in the prevention of slums or blight, or meet an urgent community need, through granting $7,500 two-year grants to relevant applicants. The Town can also apply directly to the County for CDBG and HOME funds for specific projects, which it has done in recent years to provide financial support for Senior Housing Solutions and Mid-Peninsula Housing Coalition projects.

Environmental and Infrastructure Constraints
Environmental hazards affecting housing units include geologic and seismic conditions, soil conditions, flood risk, vegetation and wildlife habitat, toxic and hazardous waste, fire hazards, noise levels, and preservation of agricultural lands. In Los Altos Hills, seismic hazards, steep slopes, soil instability, and fire hazards provide the greatest threat to the built environment. Infrastructure constraints include the availability and cost of water and sewer services. The following hazards may impact the future development of residential units in the Town and can pose a potential constraint to housing development.

Environmental Constraints
Seismic Hazards
The Town of Los Altos Hills is bisected by three major fault lines: the Berrocal Fault, which runs from the western Town border to the southeastern tip of the Town boundaries; the Altamont Fault, which runs parallel to the Berrocal Fault to the north; and the Monta Vista

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Fault, which meanders from the northwest quadrant to the southeast quadrant of the Town.

Although these fault lines are categorized by the state as potentially active, the history of seismic activity in the area does not include any significant movement along these faults.

Additionally, there are two large fault lines within Santa Clara County, the San Andreas and Calaveras Faults, which are known to be currently active and could endanger the stability of Los Altos Hills’ hillsides significantly as well as the non-hillside areas. The effects of a significant seismic event would affect and be most impactful on lands with steeper slopes and weak soils, which represents much of the remaining undeveloped land within the Town and its sphere of influence.

Flood Risk
The Town of Los Altos Hills has no major rivers that traverse the Town boundary, although some creeks, notably the Adobe Creek, paired with the topography create flooding possibilities in several areas. The Town has adopted an Open Space Conservation Area overlay designation that is superimposed upon the residential land use areas on the Land Use Diagram. The overlay is generally applied to areas of steep slopes, canyons, and ravines associated with major creeks or their tributaries, as well as creek corridors and other areas of heavy vegetation that should be protected. Within these areas, special measures should be taken to conserve the natural quality of the area and to avoid environmental degradation.

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Fire Risk
Figure 42 Los Altos Hills Draft Fire Severity Zones in LRA Fire protection service in Los Altos Hills is provided by the Santa Clara County Fire Department. The City of Palo Alto provides backup services when needed. Due to the proximity to high fire hazard severity zones, there are many concerns associated with providing adequate fire protection. Although the high fire hazard zones are at the fringes of the Town, there are some areas along the western boundary that are designated as moderate for fire hazard. This is largely due to the amount of natural vegetation, limited access, and steep terrain. These factors combine to impact the costs of housing development through the necessity to incorporate design features, construction techniques, and materials to help mitigate the high fire hazard.

Wildland fire is a continuing issue in the development of Los Altos Hills’ lands. Fueled by dense vegetation and extreme slopes, a wildland fire in 1985 destroyed 13 single-family residential units. The issue of wildland fire was emphasized in the 1991 Oakland Hills Fire, where more than 3,000 residential units were damaged or destroyed in a setting like that of the Town. Steep terrain and extensive vegetation combine to create a setting that must be

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carefully evaluated and mitigated in the approval of new residential development. The Town often requires mitigation of the potential exposure of residential units to areas of relatively high fire danger, which tends to further increase the cost of residential development. Any parcel within a very high fire hazard severity zone, as determined by the Department of Forestry and Fire Protection pursuant to Government Code Section 51178, or within a high or very high fire hazard severity zone, as indicated on maps adopted by the Department of Forestry and Fire Protection pursuant to Section 4202 of the Public Resources Code, is ineligible for a subdivision. Also, narrow roads, necessitated by the extensive steep terrain as a means of avoiding severe grading and leveling of the natural terrain, make access for the fire department difficult as well as evacuation for residents.

Topography/Slopes
The Town of Los Altos Hills is characterized as having generally sloping terrain with frequently unstable and/or expansive soils beneath surface deposits. These two characteristics require that either the conditions be avoided, leaving tracts of land undevelopable, or alternatively, that engineering design be carefully reviewed to ensure that landslides and other slope/soil stability hazards are suitably mitigated. The necessity for additional engineering and construction provisions, as well as for greater scrutiny in design and construction oversight, adds to the cost of development, a cost which is ultimately passed on to the homebuyer. As noted, much of the remaining undeveloped lands within the Town are those with the steepest slopes and the least desirable soils, making their development among the costliest in the Town.

Infrastructure Constraints
Wastewater Treatment
The Town’s wastewater treatment needs are served by individual septic systems and by sanitary sewer service. Approximately 40% of the Town utilizes septic systems; the remainder is connected to public sewer with services provided through contract with the City of Palo Alto or the City of Los Altos sanitary sewer systems.

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Source: Town of Los Altos Hills Sanitary Sewer Master Plan Update 2013

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The Town of Los Altos Hills currently has an agreement with the City of Los Altos to convey flow from the eastern portion of the Town to the Regional Plant. The agreement between the Town and the City of Los Altos allows a total of 339,900 gpd maximum daily flow or 124.06 million gallon per year maximum annual flow. It is the Town’s responsibility to allocate capacity rights among property owners within the Town. In 2002, the estimated number of actual connections to the collection system was 716 parcels. At present there are 925 connections that are served through City of Los Altos Agreement. The agreement assumes an average daily use of 300 gallons per connection.

The Town also has a contract with the City of Palo Alto to convey flow from the northern portion of the Town. Under this contract, the Town currently has capacity to serve additional connections but may have to upsize conveyance trunk lines.

According to the Town’s 2004 Sanitary Sewer Master Plan, a total of only 1,669 connections will ultimately be made to the Town’s system. Since the Town’s 2004 Sanitary Sewer Master Plan is based on buildout conditions, 1,669 connections will be used to project future flows.

According to the Town’s Master Plan, all current and future developed parcels will be sewered and no septic tank systems will remain. Also, all newly created ADUs shall be connected to public sewer or a private wastewater system. SB 1087 now requires sewer providers to grant priority for service allocations to proposed developments that include units affordable to lower-income households. The Town will comply with this requirement with the Priority Sewer Program (E-6).

Thus, there is adequate capacity or the ability to secure additional capacity under the Los Altos and Palo Alto agreements to serve the additional housing units anticipated in 2023– 2031 Housing Element.

The following are conditions relevant to constraints on future housing in Los Altos Hills:
▪ Under the Los Altos agreement, here are financial penalties for exceeding the maximum allowable flow. During wet weather, the Town is allowed to exceed the daily flow allowance in the same proportion as the City of Los Altos exceeds their average dry weather flow, without penalty. The Town is not permitted to exceed its annual flow allowance.
▪ With regards to the Palo Alto agreement, when Town flows reach 80 percent of the maximum allowable flow, they are required to perform an evaluation to address future capacity needs. The Town is responsible for 100 percent of the costs for increasing the size of a joint-use main within Palo Alto to accommodate projected flows from the Town.
▪ The Town can purchase additional capacity from one of the other “partners” in the Regional Plant and amend the agreement (which received effluent processed through both the Palo Alto and Los Altos systems).

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▪ Palo Alto is the sole provider of sewer service to Foothill College.

If capacity expansion is necessary to accommodate the projected residential growth, the Town will work with the service providers to fund the required improvements.

Water Supply
The Town’s drinking water is provided by two water suppliers: Purissima Hills Water District and the California Water Service Company (Cal Water). The Purissima Hills Water District is a public agency that provides water to residents in the northern two-thirds of Los Altos Hills; Cal Water is an investor-owned utility that serves the remaining area. A few residents supplement their water supply with well water.

Purissima Hills presently obtains all of its water from San Francisco’s Hetch Hetchy system.

Cal Water obtains the water supplied to Los Altos Hills from the Santa Clara Valley Water District via pipelines from the district’s Rinconada treatment plant and from company-owned wells.

When system capacity limits are reached, or in times of drought, water use may be subject to rationing or other restrictions. Purissima Hills may be limited to its contractual allotment and Cal Water may have to implement some restrictions based on the supply available during drought or other occasions of constrained supply. Landscaping that is heavily dependent on irrigation may not survive. Over 80 percent of all water used each year in the Purissima Hills Water District is for irrigation of landscaping. During the summer dry season (June through September) water used for landscaping is, on average, five times that of the rainy season. The 2007 Conservation Element includes policies encouraging native, waterefficient vegetation. In addition, the Town adopted a water-efficient landscape ordinance in 2010 to further reduce water use for landscaping.

Both CalWater and Purissima Hills Water District serve new connections within their service area and neither have adopted a restriction on new connections. Program B-8 also provides that the Town will work the utility providers to ensure that the there is adequate infrastructure capacity to meet the Town’s RHNA obligation for the Cycle 6 Planning period SB 1087 now requires water and sewer providers to grant priority for service allocations to proposed developments that include units affordable to lower-income households. The Town will comply with this requirement with the Priority Water Program (E-6).

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Housing Resources
Housing Allocation
State law requires that a community provide a fair share of sites to allow for and to facilitate production of the regional share of housing. To determine whether a jurisdiction has sufficient land to accommodate its share of regional housing needs for all income groups, that jurisdiction must identify “adequate sites.” These sites must be appropriately zoned, sized, and free of constraints that would inhibit residential development within the planning cycle.

The California Department of Housing and Community Development (HCD) and the California Department of Finance are responsible for assessing the new housing needs of different regions across the state. Los Altos Hills is located within the nine-county Association of Bay Area Governments (ABAG) region, which has a cumulative Regional Housing Needs Determination of 441,176 new units. ABAG has distributed these units to every jurisdiction using a methodology that considered proximity to transit, employment, and opportunity— the Regional Housing Needs Allocation (RHNA). Los Altos Hills has a RHNA of 489 units over all income categories.

Table 59 Los Altos Hills RHNA
Very Low
Income Low Income Moderate Income
Above
Moderate
Income
Total
RHNA 125 72 82 210 489
No Net Loss Buffer
Recent changes to state law have required cities to continually maintain adequate capacity in their site inventories to meet their RHNA. If a site is developed below the density projected in the Housing Element, or at a different income than projected, the Town must have adequate sites available to accommodate the remaining balance of the RHNA, or it must identify and rezone new sites that can accommodate the remaining need. For these reasons, the Town is including a buffer of 15 percent above the RHNA in each category. Therefore, the Town is planning for a capacity of 563 total units, including 227 lower (low and very low) income units in its site inventory.

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Table 60 No Net Loss Buffer
Very Low
Income
Low
Income
Moderate
Income
Above Moderate
Income Total
RHNA 125 72 82 210 489
Buffer (15% of RHNA) 19 11 12 32 74
Total Units with Buffer 144 83 94 242 563
Realistic Capacity
State law requires that a jurisdiction project realistic estimates for housing capacity on its RHNA sites. Realistic capacity may be estimated by utilizing recent project history, using a minimum density, or through other methods. Most of the Town’s new housing growth is expected to take the form of multifamily housing and accessory dwelling units (ADUs). It is important to note that the effectiveness of using historical trends to estimate future capacity and production of affordable housing is limited to ADUs. ADU development has provided the housing production necessary to meet its RHNA for all-incomes during the 5th Cycle16F16F 18 .

The Town is required to make significant changes to its zoning and development to accommodate the 563 units in a town that is semi-rural, with limited vacant land, no commercial or industrial properties, and no existing multi-family zoning. Los Altos Hills will:
• Rezone nearly 15 acres including six parcels totaling 12.8-acres off Twin Oaks Court and the adjacent 2.15-acre Arastradero site from R-A to MF; and • Apply a new MF Overlay Zone to 19 acres to allow high density multifamily development on 14 acres on two separate sites (9.5 and 5.5-acres, respectfully) on the Foothill College property and the 5-acre site on the St. Nicholas school property.

Combined, the Town will rezone 34 acres of land for multi-family dwellings at 30 units per acre and commit to a variety of housing production programs to meet the 6th Cycle RHNA.

This substantial upzoning of residential and institutional properties, along with the new Town policies and programs promoting infill development and removing development constraints will change the typology of new housing and provide more market incentives to maximize the residential development on each property.

Housing Production History
The Town had 48 net new single-family homes built from 2015 to 2021 that counted toward the last Housing Element cycle, as well as 88 ADUs permitted from 2017 through 2021. These projects were low density and reflected the current market demand and regulatory 18 See the Review of Past Accomplishments Chapter for additional information.

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environment of that period. These trends indicate a continued interest in single-family and ADU development on large-sized lots, which are expected to accommodate a large share of the Town’s 6th Cycle RHNA obligations. As multi-family development has not been permitted under current zoning standards, the Town does not have any trends or history of multi-family redevelopment. Recognizing this past constraint and lack of recent multi-family projects, the Town is including several actions in its Housing Plan to facilitate multi-family development on the RHNA sites during the 6th Cycle. The lack of recent multi-family projects is primarily due to government regulation, not lack of demand.

Affordability
Density
The California Government Code states that if a local government has adopted density standards consistent with the population-based criteria set by state law (at least 20 dwellings per acre [du/ac] for Los Altos Hills), HCD is obligated to accept sites with those density standards (20 du/ac or higher) as appropriate for accommodating the jurisdiction’s share of regional housing need for lower-income households. Per Government Code Section 65583.2(c)(3)(B), the Town’s R-A Residential district does not meet this requirement.

In response to the RHNA, Los Altos Hills will create an overlay rezone at least 34 acres including an overlay zone allowing high density multifamily development at 30 du/ac on infill sites totaling 35 19total acres of institutional and single-family designated land, and to allow for multi-family development at 30 du/ac will rezone 15 acres of single family designated land to allow multi-family development at least 20 du/ac. The new zoning, along with ADUs, will accommodate the Town’s need for lower and moderate-income housing.

Part of the above-moderate RHNA may also be met through low density, single-family zones.

However, the new multi-family zones are anticipated to accommodate a significant portion of the above-moderate housing need.

Large Sites
Pursuant to state law, sites accommodating lower-income units must have areas between

0.5 and 10 acres, regardless of allowed density. The Town has identified three four development sites for lower-income units that meet a portion of its lower-income RHNA obligation., However, each site is or could be less greater than 10 acres in overall area. While these sites Three of the four development sites are on properties whose combined parcels for three of the sites exceed the 10-acres maximum area set by California Government Code 65583(c)(2)(b), the developable site areas (the portions that are vacant, underutilized, or on slopes under 30%, or not impacted by existing uses) on each of the three four sites is under the 10- acres maximum area set by California Government Code 65583(c)(2)(b),. The Town has already received an application to develop high density housing meeting or exceeding the projected lower, moderate and above moderate RHNA units for the six parcels totaling

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12.8-acres. In addition, tThe Town is including several programs (e.g., A-1, A-11 and B-1) to accommodate and facilitate lower-income unit development on the larger sites.

Foothill College and St. Nicholas school sites properties are 124 acres and 17 acres, respectively, and the Twin Oaks Court and Arastradero Rd site is comprised of six seven (7) parcels that average over 2 acres each in area for a total of 12 15 acres. Each Twin Oaks site could be developed individually, which meets the state criteria, but if the lots are merged, there would be less than 10 acres of developable area due to steep slopes and other existing conditions. The Foothill Community College and St. Nicholas school sites properties are partially developed and include multiple tax parcels. Each of the properties sites contain one or more areas development sites less than 10 acres in area that are suitable for development for high density multifamily housing and each of the suitable development sites are less than 10 acres in area. The Town is not specifying the precise locations on each parcel that may be used for housing in order to provide property owners with maximum flexibility for design, financing and efficiency, but it is anticipated that new multi-family development could would potentially have project areas smaller than 10 acres. The Foothill College and St. Nicholas school sites are infill opportunities within each school campus. No existing school operations would need to be relocated or eliminated. New multifamily housing would not replace any existing school uses. The infill areas would make previously vacant or underutilized areas of the property such as parking lots, multifamily residential development.

Additionally, California Government Code 65583(c)(2)(B) states: “For purposes of this subparagraph, ‘site’ means that portion of a parcel or parcels designated to accommodate lower income housing needs pursuant to this subdivision.” Based on this definition and the Town’s expectations, the lower-income sites do not exceed 10 acres, as housing development is expected to occur on one or more developable areas (“sites”) of the overall parcel.

It is also important to note that the owners/operators of the larger sites are both institutional uses (schools) and one is faith based, and these owners are more likely to develop lowerincome housing relative to other single-family dwelling unit property owners in the Town.

The proposed rezonings will allow and encourage the development of multifamily housing as infill development that works with and complements the existing educational and or religious programs and facilities.

The rezoning adds to the permitted uses and creates significant additional land value and development potential. New residential development on the sites would generate significant profit that can be used by the institutions to fund ongoing and expansion of existing programs and facilities.

There are two examples of large, institutional, faith based, property owners in the Town that provide housing for lower income individuals. The Seton/Daughters of Charity property at 26000 Altamont Road is a Catholic Organization that provides housing for priests and assisted care for healthcare workers associated with their organization. The Poor Clares Monastery at 28210 Natoma Road houses approximately 30 individuals in group quarters.

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These two uses have been operating since the incorporation of the Town but do not involve separate dwelling units as categorized by the State.

Program A-11 is included to assist with lot subdivisions on large parcels and provide priority and expedited processing in conjunction with Program.

The following examples illustrate that other faith based and educational institutions are pursuing lower-income housing development across the region and state. • In Santa Clara County, Casa del Maestro is a 30-unit affordable housing project located on a 2-acre underutilized portion of Stratford Elementary, developed through a public-private partnership with the Santa Clara Unified School District. • Similarly, in San Diego, CA Bethel African Methodist Episcopal Church through Yes In God’s Backyard is building 16 units of affordable housing on-site to support seniors and veterans with disabilities. As for development of housing on local college campuses, Cañada Junior College and the College of San Mateo in adjacent San Mateo County developed apartment complexes on underutilized parking lots at those campuses.
• There are 60 units of housing on the Cañada campus off of Farm Hill Road for faculty and staff, which is located on 3.8-acre of land annexed to Redwood City in 2008. The housing project, known as Cañada Vista, includes two three-story buildings with a mix of one-, two- and three-bedroom units, and a community/recreation center at 1 Olive Court, according to the project developer's website.
• College of the Canyons in Santa Clarita is in the process of developing 100 singlebedroom units of affordable housing for students on a parking lot on campus.

Appendix C - Owner, Developer Interest that includes a variety of materials demonstrating recent owner and developer interest in development of housing on LAH RHNA sites and similar projects in the region. This includes a letter from Foothill College documenting its interest and commitment to addressing affordable housing needs of its students and faculty, including two $132,000 housing feasibility studies that are underway and expected to be completed in 2023, approval of the $898 million Measure G bond including allocation of $200 million for housing, and the intent to entertain housing development proposals by qualified developers and to continue to work with the Town. The Town has also received a request include another site in the rezoning to a new MF zone and the intent to build affordable housing in the next eight year planning period. The Town has also received an application to develop the Twin Oaks Court site for mixed-income senior, farmworker and employee housing including meeting and exceeding 100% of the projected RHNA for the site.

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There is no intent to replace any of the existing uses. The Town wants to retain the existing institutional uses. It is expected new housing development on the properties will be infill development only.

It is possible, but not necessary, that the property owners or new housing developers may wish to subdivide the property to create new parcels to allow separate and independent ownership. The Town will facilitate subdivision as part of any development application if desired by the owner or developer. Subdivision is a normal and routine process that does not impose any significant constraint on the overall development program.

Based on the fact that the Town is not anticipating any particular housing project to be larger than 10 acres and the history of lower-income housing development on institutional sites nearby, the parcel sizes will not create a constraint to development for lower-income housing.
2021-22 Higher Education Student Housing Grant
On March 21, 2022, pursuant to the requirements of Section 2 of Chapter 262, Statutes of 2021 (SB 169), the Department of Finance is respectfully submitting the Higher Education Student Housing Grant Program construction and planning grant requests reflected in Attachments 1and 2, respectively, for inclusion in the annual Budget Act or other legislation.

SB 169 appropriated $500 million one-time General Fund in fiscal year 2021-22 for the Higher Education Student Housing Grant Program, which supports one-time grants to either construct student housing or acquire and renovate commercial properties to provide affordable, low-cost housing options for students attending the University of California, California State University, and the California Community Colleges. Of the appropriated funding, up to $25 million is available to California Community Colleges to support planning grants to determine if it is feasible for a community college to construct and offer affordable student rental housing. Additionally, SB 169 reflected intent to appropriate $750 million onetime General Fund in fiscal year 2022-23 and $750 million one-time General Fund in fiscal year 2023-24 to support the Higher Education Student Housing Grant Program.

University of California and California State University campuses, and California Community Colleges, submitted 42 construction grant applications requesting approximately $2.8 billion in state funding. California Community Colleges submitted 75 planning grant applications requesting approximately $191 million in state funding. The Department of Finance considered only construction and planning grant requests that met the program’s eligibility requirements for inclusion in the annual Budget Act or other legislation.

Multifamily Overlay Zone Development Review Process
The new multifamily overlay zone will include a process for site development plan review and approval. The new zone will include objective development standards. New objective

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design standards (ODS) will also be prepared to guide the review process for all multifamily projects. The Town has already contracted with a consultant to develop the new multifamily zone and ODS as well as an EIR for the anticipated and projected development.

Development of infill high density multifamily housing on the non-vacant Foothill College and St. Nicholas properties is likely to be done in one of three ways:

1. Provide a long-term lease (e.g. 55 or 99-years) to an affordable housing developer on a portion of the property – the development site.

2. Work with a housing developer to design, entitle and build housing that the school would own. The school may contract with a professional housing management company to operate and manage the housing on behalf of the school.

3. The school may subdivide the property to create a separate parcel for each development site that can then be sold to a developer, or retained by the school but managed and operated as a separate and independent financial entity from the school.

All of these options would be decided relatively early, and would be implemented concurrently as part of the overall project design and entitlement. The subdivision process would be coordinated concurrently with the site development plan review process and would not elicit any additional time or requirements. The entitlement process will include the following steps:
▪ An optional preliminary review with staff to identify and streamline potential requirements and issues,
▪ Submittal of a complete application,
▪ Review for compliance with the new zoning regulations and ODS, ▪ Completion of CEQA review and document which is expected to address only site specific issues. Larger issues of traffic, greenhouse gas, noise, etc., are proposed to be addressed by the EIR for the new zoning.
▪ Once the application has completed the staff review and CEQA documentation, it will be scheduled and reviewed at a public hearing before the Planning Commission.

If the project provides the requisite 20% of units for lower-income households, the project will be processed ministerially, without a public hearing by the Planning Commission.

Town of Los Altos Hills Housing Element
Housing Resources 188
Site Inventory and Strategy
Existing Capacity and Future Potential
Single-Family Residential
Approximately 40% of the Town’s housing production in the last Housing Element cycle was through the construction of single-family dwellings, as permitted by the Town’s zoning. These projects are low in density and intensity and are expected to continue to be built based on existing trends and market demand. Table 61 illustrates the trends in single-family development production since 2017. The average number of net new single-family permits issued since 2017 is 5.8 per year.

Based on the historic production trends and available land, the Town estimates an average of 6 single-family homes will be permitted per year, with an overall estimate of 48 homes during the 6th Cycle. There are more than 48 vacant R-A lots in the town that are likely to accommodate these units, though larger properties with existing homes may be subdivided and contribute to the estimate 48 units as well. In addition, a recently recorded 9-lot subdivision with eight vacant lots will likely be developed over the next cycle. All of these homes are anticipated to be affordable to above-moderate households.

Table 61 Recent Single Family Development Trends
Year # of Net New Single-Family Homes
2017 4
2018 8
2019 8
2020 4
2021 5
Average 6
Source: Town of Los Altos Hills
Accessory Dwelling Units
Los Altos Hills has seen dramatic growth in recent interest and production in ADUs. Table 62 illustrates trends in ADU production since 2018. ADU production has grown significantly and is expected to continue expanding throughout the 6th Cycle. The average number of ADU permits issued since 2018 is 19.8 per year. However, the ADU permitting level for 2021, at 41 permits, far exceeded the 2018 through 2020 rates. This trend provides strong evidence of continued interest and uptake of ADUs in Los Altos Hills that will continue over the 6th Cycle.

As of October 2022, the Town has received 32 applications for ADUs and permitted 20 of the applications. The recent ADU trends result in an average annual production of 19.8 units per year, allowing 160 ADUs to be credited towards the 6th Cycle RHNA.

Town of Los Altos Hills Housing Element
Housing Resources 189
Table 62 ADUs Toward the RHNA
Year # of ADUs
2018 5
2019 8
2020 25
2021 41
2022* 20
Average 19.8
*As of October 2022
Source: Town of Los Altos Hills
The levels of affordability assumed for these 160 ADUs is based off the ABAG affordability survey data. ABAG found that approximately 30 percent of ADUs were used for each of the very low-, low- and moderate-income categories, respectively, and the remaining 10 percent in the above moderate-income category.17F17F
19 The Town of Los Altos Hills conducted a survey
of residents regarding ADUs in 2021. The survey had 507 respondents including 109 that owned ADUs. The survey results mimicked the results of the ABAG study. Of the 50 respondents to the question on rent charged, 48% qualified as Extremely Low-Income, 56% qualified as Very Low, 24% as Low, 10% as Moderate, and 10% as Above-Moderate. ; 83% demonstrated a high occupancy rate having been occupied in the last six months. Of the two studies, the Town used the more conservative ABAG results for the projections since they had more conservative distribution rates (lower for the lower-income households and higher rates for the moderate income households), and because the ABAG study was based on a larger sample size.

Based on both the recent trends and affordability assumptions, Table 63 displays the assumed projected number of ADUs in each income category for the 6th Cycle.

Table 63 ADU Affordability Assumptions
Percent Income Category # of ADUs
30% Very Low 48
30% Low 48
30% Moderate 48
10% Above Moderate 16
Source: Town of Los Altos Hills; ABAG
19 ABAG ADU Technical Assistance Memo. https://abag.ca.gov/sites/default/files/documents/2022- 03/ADUs-Projections-Memo-final.pdf

Town of Los Altos Hills Housing Element
Housing Resources 190
According to the 2021 Los Altos Hills ADU survey, rent charged for the majority of Los Altos Hills ADUs and JADUs align with Santa Clara County affordability parameters for moderateincome and below moderate-income households. All the studio units were being rented at the extremely low- to moderate- income categories and 83 percent of 1- bedroom units are affordable to extremely low- to low-income households. Nearly 93 percent of 2-bedroom units are affordable to below moderate-income households. Further, using 2020-2021 rental data in Los Altos Hills and comparable communities in Santa Clara and San Mateo Counties, the median rents for studios, 1-bedroom, and 2-bedroom units were $1,970, $2,300, and $3,400 respectively. There are currently four ADUs listed on Zillow for rent in Los Altos Hills including two 1-bedroom and two 2-bedroom ADUs with a median asking rent of $3,100.

Based on the recent production and affordability trends, along with the Town’s strong commitment to facilitating ADU construction, the ADU assumptions are conservative and highly realistic, and it is likely that additional ADUs above the number credited toward the RHNA will be constructed during the cycle.

Senate Bill 9 (SB 9) Dwelling Units
SB 9, also known as the California Housing Opportunity and More Efficiency (HOME) Act, is a state bill that requires cities to allow one additional residential unit on parcels zoned for single-dwelling units. This law allows up to a total of two residential units in a single-dwelling unit zone (R-A), excluding any ADUs. SB 9 provides a streamlined ministerial process for property owners to subdivide their single-family residential lot and/or build additional residential units on their property.

SB 9 provides a variety of housing development options for property owners to optimize their property’s financial potential. A homeowner could split their lot and sell or build up to three rental units which could create opportunities for new home ownership as well as help to alleviate the housing demand.

SB 9 does not apply to every single-family zoned property, there are several areas that are excluded from development under Senate Bill 35. These areas include:
▪ Wetlands
▪ Earthquake fault zones
▪ Hazardous waste sites
▪ Land designated for agricultural protection by a local ballot measure ▪ Land subject to conservation easements
▪ Areas within FEMA-designated flood plains or regulatory floodway ▪ High Fire Hazard Severity Zones (designated by CalFire)

Town of Los Altos Hills Housing Element
Housing Resources 191
SB 9 could affect up to 1,000 lots due to the amount of single-dwelling unit zoned lots and the amount of lots located in areas that don’t qualify within the Town.

As of October 2022, the Town has received six SB 9 applications. Three additional SB 9 permit applications have been received for a total of 6 through 2022. Two of the applications are on vacant lots and each have a total of four units. The third application is for two units on an existing lot. As ADUs and vacant lots are already calculated in other projects, the three SB 9 applications result in an additional two SB 9 ADU units. The Town is anticipating increased applications under SB 9 and is using the trend of two additional SB 9 ADUs and two (net) additional SB 9 (non ADU) units to project 16 additional ADUs and 16 additional SB 9 (non ADU) units throughout the planning period. A list of sites where SB 9 units can be accommodated without any constraints is provided in Appendix A: Vacant Lots with Potential SB 9 Units. The 16 additional ADUs are projected at the same income breakdown for ADUs as described above.

The Town is including a number of programs to remove constraints, and encourage and facilitate SB 9 unit development in the Town. This includes the adoption of a revised, permanent SB 9 ordinance (Program B-10) an SB 9 education program (Program G-2) and a program to advertise vacant units to find tenants from the larger region (Program G-5).

RHNA Shortfall
The Town has little capacity for housing under its existing zoning, and no capacity for multifamily housing development. Therefore, the Town has a shortfall for most of the RHNA, which necessitates specific rezoning programs and development standards pursuant to Government Code 65583.2. Under existing zoning, the Town has a realistic capacity for 105 lower-income units (very low- plus low-income), 53 moderate income units and 66 above moderate-income units, creating a shortfall of 92 lower-income units, 29 moderate-income units, and 144 above-moderate income units, respectively. Table 64 shows the RHNA shortfall for all income levels.