10. The Community Development Department or designee is hereby directed to distribute copies of the Housing Element in the manner provided in Government Code Sections 65357 and 65589.7.
PASSED AND ADOPTED at a special meeting of the Town Council of the Town of Los Gatos, California, held on the 30th day of January 2023, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
Draft
This Page
Intentionally
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Town of Los Gatos 6th Cycle
2023-2031 Housing Element Update
HCD Draft
Initial Review Period
October 2022
EXHIBIT 1
This document was produced on recycled paper.
HCD DRAFT INITIAL REVIEW PERIOD
TOWN OF LOS GATOS
6TH CYCLE 2023-2031 HOUSING ELEMENT
OCTOBER 2022
PREPARED BY
Town of Los Gatos
Community Development Department
110 E. Main Street
Los Gatos, CA 95030
Tel 408.354.6872
EMC Planning Group Inc.
601 Abrego Street
Monterey, CA 93940
Tel 831.649.1799
Fax 831.649.8399
www.emcplanning.com
Table of Contents
October 2022 HCD Draft Initial Review Period 2023-2031 Housing Element i
10. Housing Element......................................................................................................... 10-1
10.1 Introduction.............................................................................................................. 10-1
10.1.1 California Housing Crisis.......................................................................................... 10-2
10.1.2 Regional Housing Needs Assessment. ..................................................................... 10-2
10.1.3 Affirmative Furthering Fair Housing .......................................................................10-3
10.1.4 Overview of Planning and Legislative Efforts..........................................................10-8
10.1.5 Public Participation................................................................................................10-10
10.2 Overview of Housing Needs and Constraints............................................................10-16
10.2.1 Introduction...........................................................................................................10-16
10.2.2 Los Gatos Overview. ..............................................................................................10-16
10.2.3 Demographics .......................................................................................................10-19
10.2.4 Household Characteristics.....................................................................................10-22
10.2.5 Housing Stock Characteristics................................................................................10-24
10.2.6 Special Housing Needs...........................................................................................10-26
10.2.7 Governmental and Non-Governmental Constraints.............................................10-30
10.3 Site Inventory and Opportunities.............................................................................10-31
10.3.1 Introduction...........................................................................................................10-31
10.3.2 Sites Summary. ......................................................................................................10-31
10.4 Energy and Resource Conservation ..........................................................................10-32
10.4.1 Opportunities for Energy Conservation................................................................. 10-32
10.4.2 Energy-Related Goals and Policies. .......................................................................10-33
10.5 Goals and Policies ...................................................................................................10-34
10.6 Implementation Programs.......................................................................................10-39
10.7 Glossary and Acronyms...........................................................................................10-59 Appendices
Appendix A Affirmatively Furthering Fair Housing Reports Appendix B Housing Needs Assessment
Appendix C Governmental and Non-Governmental Constraints Appendix D Vacant and Available Sites
Appendix E Review of Previous Housing Element
Appendix F List of Organizations Contacted
Appendix G AFFH Segregation Report Los Gatos
Appendix H Sites Inventory Form
10 10. Housing Element
October 2022 Initial Draft 2023-2031 Housing Element 10-1 This 2023-2031 Housing Element is the Town of Los Gatos’ response to meet the housing needs of our community while meeting the State's housing goals as set forth in Article 10.6 of the California Government Code.
The California State Legislature has identified the attainment of a decent home and a suitable living environment for every Californian as the State's major housing goal. The Los Gatos Housing Element represents a sincere and open-minded effort to meet local and regional housing needs within the constraints of a largely built-out community, limited land availability, and extraordinarily high costs of land and housing. The Housing Element serves as Chapter 10 of the Town’s 2040 General Plan.
A copy of the Town’s 2015-2023 Housing Element can be found at this link:
https://www.losgatosca.gov/1735/General-Plan---Housing-Element
10.1 Introduction
Pursuant to State law, the Housing Element must be updated periodically according to statutory deadlines. This 6 th Cycle Housing Element covers the planning period 2023 through 2031 and replaces the Town's 5th Cycle Housing Element that covered the period 2015 through 2023.
Per State Housing Element law, the document must be periodically updated to:
▪ Outline the community’s housing production objectives consistent with State and regional growth projections;
▪ Describe goals, policies, and implementation programs to achieve local housing objectives; ▪ Examine the local need for housing with a focus on special needs populations; ▪ Identify adequate sites for the production of housing serving various income levels; ▪ Analyze potential constraints to new housing production; ▪ Evaluate the Housing Element for consistency with other General Plan elements; and ▪ Evaluate Affirmatively Furthering Fair Housing.
A Housing Element is considered to be out of compliance with the State’s Housing Element law if one of the following applies:
▪ It has not been revised and updated by the statutory deadline; or ▪ Its contents do not substantially comply with the statutory requirements.
HCD Draft Initial Review 2023-2031 Housing Element
10-2 HCD Draft Initial Review 2023-2031 Housing Element October 2022 Repercussions for a jurisdiction which does not comply with the Housing Element Law include:
▪ Limited access to State Funding.
▪ Vulnerability to litigation from housing rights’ organizations, developers, and the Department of Housing and Community Development (HCD), resulting in the following potential consequences:
a. The court may order the jurisdiction to bring its Housing Element into compliance within 120 days; b. Suspension of a jurisdiction’s authority to issue building permits or grant zoning changes, variances, or subdivision map approvals;
c. The court may step in and approve housing projects; and d. If a jurisdiction faces a court action stemming from its lack of compliance and either loses or settles the case, it often must pay substantial attorney fees to the plaintiff’s attorneys in addition to the fees paid to its own attorneys.
10.1.1 California’s Housing Crisis
The 6
th Cycle Housing Element Update comes at a critical time because California is experiencing a housing crisis. As is the case for all jurisdictions in California, Los Gatos must play its part in meeting the demand for housing. In the last Housing Element cycle (2015 to 2023), Los Gatos’ Regional Housing Needs Allocation (RHNA) called for 619 new housing units; however, as of December 31, 2021, only 81 percent of these housing units have been permitted (502 units). Of those constructed, the large majority were affordable only to households making more than the Town’s area median income (AMI). In 2022, this amounted to $168,500 for a family of four.
Without immediate action, the housing crisis will only get worse. In the 20-year period (2020 to 2040), Santa Clara County is projected to add 169,450 jobs, which represents a 15 percent increase. Los Gatos is projected to add nearly 1,030 jobs in the same period, a five percent increase. These changes will increase demand for housing across all income levels. The Town and region must identify ways to significantly increase housing production, or risk worsening the burden for existing lower income households. Many lower income households do not have the means to move to a new location of employment and are faced with unsustainable increases in housing cost.
The lack of affordable housing has constrained the Silicon Valley economy as well-educated workers have become increasingly mobile in searching for better jobs and a higher quality of life.
If Los Gatos and the region become more competitive in attracting high-skilled workers and increasingly unaffordable to lower income workers and seniors, then social and economic segregation will worsen, only exacerbating historic patterns of housing discrimination, racial bias, and segregation. This potentiality has become so acute in recent years that the California Legislature addressed the issue with new legislation in 2018.
Assembly Bill (AB) 686 requires all State and local agencies to explicitly address, combat, and relieve disparities resulting from past patterns of housing segregation to foster more inclusive communities. This is commonly referred to as Affirmatively Furthering Fair Housing (AFFH). The legislation applies to all Housing Elements revised after January 1, 2021.
10.1.2 Regional Housing Needs Allocation
The Plan Bay Area 2050 Final Blueprint forecasts that the nine Bay Area counties will add 1.4 million new households between 2015 and 2050. For the eight-year time frame covered by this Housing Element Update, HCD has identified the region’s housing need as 441,176 units. The total number of housing units assigned by HCD is separated into four income categories that cover housing types for all income levels, from very lowincome households to market rate housing. 1 This calculation, known as the Regional Housing Needs 1 HCD divides the RHNA into the following four income categories: Very Low income: 0-50 percent of AMI, Low income: 50-80 percent of AMI, Moderate income: 80-120 percent of AMI, and Above Moderate income: 120 percent or more of AMI.
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-3 Determination (RHND), is based on population projections produced by the California Department of Finance as well as adjustments that incorporate the region’s existing housing need.
Almost all jurisdictions in the Bay Area received a larger RHNA this cycle compared to the last cycle, primarily due to changes in State law that led to a considerably higher RHND compared to previous cycles.
On January 12, 2022, HCD approved the Association of Bay Area Government’s (ABAG) adopted RHNA Methodology. For Los Gatos, the RHNA to be planned for this cycle is 1,993 units, an increase from the last cycle. Table 10-1 shows the RHNA, including breakdown by affordability levels, for Los Gatos for the period 2023 through 2031.
Table 10-1 Regional Housing Needs Allocation
Income Group Percentage of AMI Share
Extremely Low Income 0-30 268
Very Low Income 31-50 269
Low Income 51-80 310
Moderate Income 81-120 320
Above Moderate Income Over 120 826
Total 1,993
10.1.3 Affirmatively Furthering Fair Housing
In 2018, AB 686 established an independent State mandate to address AFFH. AB 686 extends requirements for Federal grantees and contractors to “affirmatively further fair housing,” including requirements in the Federal Fair Housing Act, to public agencies in California. Affirmatively furthering fair housing is defined specifically as taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity by replacing segregated living patterns with truly integrated and balanced living patterns; transforming racially and ethnically concentrated areas of poverty into areas of opportunity; and fostering and maintaining compliance with civil rights and fair housing laws.
AB 686 requires public agencies to:
▪ Administer their programs and activities relating to housing and community development in a manner to affirmatively further fair housing;
▪ Not take any action that is materially inconsistent with the obligation to affirmatively further fair housing; ▪ Ensure that the program and actions to achieve the goals and objectives of the Housing Element affirmatively further fair housing; and
▪ Include an assessment of fair housing in the Housing Element.
The requirement to AFFH is derived from The Fair Housing Act of 1968, which prohibited discrimination concerning the sale, rental, and financing of housing based on race, color, religion, national origin, or sex and was later amended to include familial status and disability. The 2015 U.S. Department of Housing and Urban
HCD Draft Initial Review 2023-2031 Housing Element
10-4 HCD Draft Initial Review 2023-2031 Housing Element October 2022 Development (HUD) Rule to Affirmatively Further Fair Housing and California AB 686 (2018) both mandate that each jurisdiction takes meaningful action to address significant disparities in housing needs and access to opportunity. AB 686 requires that jurisdictions incorporate AFFH into their Housing Elements, which includes inclusive community participation, an assessment of fair housing, a site inventory reflective of AFFH, and the development of goals, policies, and programs to meaningfully address local fair housing issues.
An AFFH analysis was prepared by Root Policy Research and is included as an appendix to this Housing Element (see Appendix A).
Defining Segregation
Segregation is the separation of different demographic groups into concentrated geographic locations or communities, meaning that groups are unevenly distributed across geographic space. Appendix A examines two spatial forms of segregation: neighborhood level segregation within a local jurisdiction; and Town level segregation between jurisdictions in the Bay Area.
Neighborhood level segregation (within a jurisdiction, or intra-Town): Segregation of race and income groups can occur from neighborhood to neighborhood within a Town. For example, if a local jurisdiction has a population that is 20 percent Latinx, but some neighborhoods are 80 percent Latinx while others have nearly no Latinx residents, that jurisdiction would have segregated neighborhoods.
Town level segregation (between jurisdictions in a region, or inter-jurisdiction): Race and income divides also occur between jurisdictions in a region. A region could be very diverse with equal numbers of White, Asian, Black, and Latinx residents, but the region could also be highly segregated with each jurisdiction consisting solely of one racial group.
There are many factors that have contributed to the generation and maintenance of segregation. Historically, racial segregation stemmed from explicit discrimination against people of color, such as restrictive covenants, redlining, and discrimination in mortgage lending. This history includes many overtly discriminatory policies made by Federal, State, and local governments. Segregation patterns are also affected by policies that appear raceneutral, such as land use decisions and the regulation of housing development.
Segregation has resulted in vastly unequal access to public goods such as quality schools, neighborhood services and amenities, parks and playgrounds, clean air and water, and public safety. Segregation has lasting generational affects that target low-income and minority communities. Unequal access to public goods disproportionately affects undeserved communities, leading to lower levels of educational attainment, higher morbidity rates, and higher mortality rates.
Segregation Patterns in the Bay Area
Across the San Francisco Bay Area, White residents and above moderate-income residents are significantly more segregated from other racial and income groups (see Appendix B). The highest levels of racial segregation occur between the Black and White populations. The analysis completed for Appendix A indicates that the amount of racial segregation both within Bay Area cities and across jurisdictions in the region has decreased since the year 2000. This finding is consistent with recent research from the Othering and Belonging Institute at UC Berkeley, which concluded that, “[a]lthough seven of the nine Bay Area counties were more segregated in 2020 than they were in either 1980 or 1990, racial residential segregation in the region appears to have peaked around the year 2000 and has generally declined since.” However, compared to cities in other parts of California, Bay Area jurisdictions have more neighborhood level segregation between residents from different racial groups.
Additionally, there is also more racial segregation between Bay Area cities compared to other regions in the State.
The Federal Fair Housing Act prohibits discrimination in housing on the basis of race or color, national origin, religion, sex, familial status, and disability. Figure 10-1 on the following page shows the number of HCD Fair Housing Inquiries for the period 2013 through 2021.
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-5 Figure 10-1 HCD Fair Housing Inquiries (2013- 2021)
Source: California Department of Housing.
Segregation and Land Use
It is difficult to address segregation patterns without an analysis of both historical and existing land use policies that impact segregation patterns. Land use regulations influence what kind of housing is built in a county, city, town, or neighborhood. These land use regulations in turn impact demographics, and they can be used to affect the number of houses in a community, the number of people who live in the community, the wealth of the people who live in the community, and where within the community they reside. Land use regulations have led to disparities among neighborhoods based on class and race.
Segregation in the Town of Los Gatos
▪ As of 2020, White residents are the most geographically concentrated compared to other racial groups in Los Gatos, as measured by the isolation index. White residents live in neighborhoods where they are less likely to come into contact with other racial groups.
▪ Among all racial groups, the White population’s isolation index value has changed the most over time, becoming less segregated from other racial groups between 2000 and 2020. ▪ According to the dissimilarity index, within Los Gatos, racial segregation is most significant between Black and White populations.
2 However, this dissimilarity index 3 value is not a reliable data point due to small population size.
2 The analysis conducted for this report suggests that dissimilarity index values are unreliable for a population group if that group represents approximately less than 5% of the jurisdiction’s total population. ABAG/MTC recommends that when cities have population groups that are less than 5% of the jurisdiction’s population (see Figure B-4 in Appendix B) the assessment could focus on the isolation index or Thiel’s H-Index to gain a more accurate understanding of neighborhood-level racial segregation in their jurisdiction. 3 The “index of dissimilarity” is the most commonly used and accepted method of measuring segregation, and compares how evenly one population subgroup is spread out geographically compared to another population sub-group.
HCD Draft Initial Review 2023-2031 Housing Element
10-6 HCD Draft Initial Review 2023-2031 Housing Element October 2022 ▪ According to the Theil H-Index,4 neighborhood racial segregation in Los Gatos increased between 2010 and 2020. Neighborhood income segregation stayed about the same between 2010 and 2015. ▪ Above moderate-income residents are the most segregated compared to other income groups in Los Gatos. Above moderate-income residents live in neighborhoods where they are less likely to encounter residents of other income groups.
▪ Among all income groups, the above moderate-income population’s segregation measure has changed the most over time, becoming less segregated from other income groups between 2010 and 2015. ▪ According to the dissimilarity index, segregation between lower income residents and residents who are not lower income has increased between 2010 and 2015. In 2015, the income segregation in Los Gatos between lower income residents and other residents was higher than the average value for Bay Area jurisdictions.
Figures 10-2 and 10-3 identify HCD Fair Housing Inquiries by bias for the period 2013 through 2021 and a list of Fair Housing Assistance organizations within Santa Clara County. Figure 10-2 shows that a total of eight fair housing inquiries for Los Gatos were submitted with two submittals citing race as a bias and six cases citing no specific bias.
Figure 10-2 HCD Fair Housing Inquiries by Bias, January 2013-March 2021 Source: California Department of Housing and Community Development AFFH Data Viewer 4 The Theil H-Index is a statistic primarily used to measure economic inequality and other economic phenomena. Jurisdiction San Jose 39 9 9 8 0 3 0 146 9 111 225
Santa Clara 2 2 4 4 0 0 0 26 1 12 40
Sunnyvale 7 1 3 0 0 0 0 17 1 16 29
Palo Alto 3 1 3 0 0 1 0 18 1 9 26
Gilroy 3 1 0 0 0 0 0 11 1 4 15
Morgan Hill 3 2 1 0 0 0 0 6 0 6 12
Campbell 3 1 0 0 0 0 0 7 0 5 11
Mountain View 1 0 1 0 0 0 0 9 0 6 11
Los Gatos 0 0 2 0 0 0 0 6 1 5 8
Cupertino 2 1 0 0 0 0 0 4 1 2 7
Milpitas 0 0 0 0 0 0 0 6 0 2 6
Saratoga 0 0 0 0 0 0 0 1 0 0 1
Los Altos 0 0 0 0 0 0 0 0 0 0 0
Los Altos Hills 0 0 0 0 0 0 0 0 0 0 0
Monte Sereno 0 0 0 0 0 0 0 0 0 0 0
Disability Race Total
Familial
Status
National
Origin Religion Sex Color
Failure
to
Respond
None
Cited
Decision
Not To
Persue
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-7 Figure 10-3 Fair Housing Assistance Organizations, Santa Clara County Source: Los-Gatos-Housing-Resources-Guide (losgatosca.gov) Name
Project Sentinel Northern California
1490 El Camino
Real, Santa Clara,
CA 95050
(800) 339-6043 https://www.housing.org/
Los Gatos Rental
Dispute
Resolution
Program C/O
Project Sentinel
Los Gatos
1490 El Camino
Real, Santa Clara,
CA 95050
(800) 339-6043 https://www.housing.org/
Housing and
Economic Rights
Advocates
State of California
1814 Franklin St.
Ste. 1040 Oakland,
CA 94612
(510) 271-8443 https://www.heraca.org
Bay Area Legal
Aid - Legal Advice
Line
Parts of Santa Clara
County
2 West Santa Clara
Street, 8th Floor,
San Jose, CA 95113
(408) 850-7066 https://www.baylegal.org
Senior Adults
Legal Assistance
(SALA)
Santa Clara County
160 E Virginia
Street, Ste. 260, San
Jose, CA 95112
(408) 295-5991 www.sala.org
Asian Law
Alliance
Silicon Valley
184 East Jackson
Street, San Jose, CA
95112
(408) 287-9710 www.asianlawalliance.org
California
Department of
Fair Employment
and Housing
State of California
2218 Kausen Dr.
Ste. 100 Elk Grove,
CA 95758
(916) 478-7251 https://www.dfeh.ca.gov
Law Foundation
of Silicon Valley
Greater Silicon
Valley, Santa Clara
County
152 N. 3rd St. #3
San Jose, CA 95112
(408) 293-4790 https://lawfoundation.org
Service Area Address Phone Website
HCD Draft Initial Review 2023-2031 Housing Element
10-8 HCD Draft Initial Review 2023-2031 Housing Element October 2022 Regional Segregation
▪ Los Gatos has a higher percentage of White residents than other jurisdictions in the Bay Area as a whole, a lower percentage of Latinx residents, a lower percentage of Black residents, and a lower percentage of Asian and Pacific Islander residents.
▪ Regarding income groups, Los Gatos has a lower percentage of very low-income residents than other jurisdictions in the Bay Area as a whole, a lower percentage of low-income residents, a lower percentage of moderate-income residents, and a higher percentage of above moderate-income residents.
10.1.4 Overview of Planning and Legislative Efforts
This section provides an overview of planning and legislative efforts that provide the context for development of the 6th Cycle Housing Element.
2040 General Plan
On June 30, 2022, the Town Council adopted the 2040 General Plan and accompanying Environmental Impact Report (EIR). As of September 27, 2022, The Land Use and Community Design Elements of the 2040 General Plan are suspended pending the results of a referendum. In the interim, the Town’s 2020 General Plan Land Use and Community Design Elements will govern during the suspension period.
Effectiveness of Previous Housing Element
The Town of Los Gatos 5th Cycle Housing Element (2015 to 2023) identified a RHNA of 619 housing units between January 31, 2015, and January 1, 2023. As of December 31, 2021, 502 new units were added to the Town’s housing stock in this cycle, achieving approximately 81 percent of the Town’s RHNA. Units affordable to moderate- and lower-income households that were created during the planning period include senior rental units (North Forty Phase I), an attached condominium (Union Avenue), single-family homes (Knowles Avenue) produced through the Town’s Below Market Program (BMP), and accessory dwelling units (ADU). See Appendix E for a complete review and analysis of Los Gatos’s 5
th Cycle Housing Element (2015-2023).
New State Laws Affecting Housing
While the Town has taken steps throughout the 5
th Cycle to increase housing production locally, the State passed numerous laws to address California’s housing crisis during the same period. As the State passes new legislation in the remainder of the 5
th Cycle and during the 6th Cycle, the Town will continue to amend the Municipal Code; to monitor and evaluate policies and programs designed to meet State requirements; and to proactively implement new policies and programs to help increase housing production in the Town.
In 2019, several bills were signed into law that include requirements for local density bonus programs, the Housing Element, surplus lands, ADU streamlining, and removing local barriers to housing production. The Town has and will continue to implement changes required by State law, through amendments to the Los Gatos Municipal Code. The following is a summary of recent legislation and proposed Town activities that will further the Town’s efforts to increase housing production during the 6 th Cycle. Please see the previous section for a
discussion of AB 686 (Affirmatively Furthering Fair Housing).
Streamlining for Subdividing Single-Family Lots
Senate Bill (SB) 9, the California Housing Opportunity and More Efficiency (HOME) Act, streamlines the process for a homeowner to create a duplex or subdivide an existing lot. Any new housing created as a result of this bill must meet a specific list of qualifications that protects historic districts, preserves environmental quality and the look of communities, and prevents tenants from being displaced. This legislation will enable homeowners to create intergenerational wealth, and provide access to more rental and ownership options for working families who would otherwise be priced out of neighborhoods.
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-9 Incentive for Accessory Dwelling Units
AB 68, AB 587, AB 671, AB 881, and SB 13 further incentivize the development of ADUs, through streamlined permits, reduced setback requirements, increased allowable square footage, reduced parking requirements, and reduced fees. The Town has amended its regulations and procedures pursuant to State law. In addition, the Town increased the allowable floor area ratio by an additional ten percent for development of ADUs.
Density Bonus Update
AB 1763 requires jurisdictions to provide a density bonus to development projects that restrict 100 percent of their units as affordable to lower and moderate-income households.
Objective Standards for Multi-Family and Mixed-Use Development Applications The Town of Los Gatos is developing objective standards for the review of multi-family housing and mixed-use development applications. This effort is in response to State legislation requiring jurisdictions to adopt objective standards and to implement them in a streamlined review of qualifying housing projects. Objective standards are defined under State law as “standards that involve no personal or subjective judgement by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal” (California Government Code, Section 65913.4). Objective standards are a powerful tool that allow communities to respond to State housing laws that are reducing local control of development. They provide an opportunity to ensure that the appearance of new development is compatible with the Town’s vision, while reinforcing objectivity in the decisionmaking process.
Low-Barrier Navigation Centers
A "Low Barrier Navigation Center" is a low-barrier, service-enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. AB 101 requires jurisdictions to allow “low-barrier navigation centers” by-right in areas zoned for mixed-uses and in non-residential zones permitting multi-family uses if the center meets specified requirements. Implementation Program BD has been included pursuant to the requirements of AB 101.
Surplus Public Land
AB 1255 and AB 1486 seek to identify and prioritize State and local surplus lands available for housing development that are affordable to lower income households. The Town has not identified surplus lands through the sites inventory analysis and will report on these lands if identified through the Housing Element Annual Progress Reports.
Accelerated Housing Production
AB 2162 and SB 2 address various methods and funding sources that jurisdictions may use to accelerate housing production.
Priority Processing
SB 330 enacts changes to local development policies, permitting, and processes that will be in effect through January 1, 2025. SB 330 places new criteria on the application requirements and processing times for housing developments; prevents localities from decreasing the housing capacity of any site, such as through downzoning or increasing open space requirements, if such a decrease would preclude the jurisdiction from meeting its RHNA housing targets; prevents localities from establishing non-objective standards; and requires that any proposed demolition of housing units be accompanied by a project that would replace or exceed the total number of units
HCD Draft Initial Review 2023-2031 Housing Element
10-10 HCD Draft Initial Review 2023-2031 Housing Element October 2022 demolished. Additionally, any demolished units that were occupied by lower income households must be replaced with new units affordable to households with those same income levels.
Housing and Public Safety
In response to SB 379, SB 1035, SB 99, and AB 747, local jurisdictions must update their Safety Element to comprehensively address climate adaptation and resilience and identify evacuation routes. These updates are triggered by any General Plan or Housing Element Update that occurs after January 1, 2014. The Town has conducted this update through its recent General Plan Update, so that it can direct future development into areas that avoid or reduce unreasonable risks, while also providing needed housing and maintaining other community planning goals.
10.1.5 Public Participation
The primary purpose of this section is to describe the effort made by the Town of Los Gatos to engage all economic segments of the community (including residents and/or their representatives) in the development and update of the Housing Element. The 6
th Cycle RHNA numbers are a significant change for all California communities, and the success of the update process is dependent on a robust, inclusive, and meaningful community outreach and engagement program. The COVID-19 pandemic has complicated community outreach efforts, but the pandemic has also catalyzed the development of new digital tools that have brought interactive engagement to a new level. The following section outlines efforts taken by the Town of Los Gatos to engage the community in the Housing Element Update process. The summary below illustrates the efforts that the Town has employed to reach the community for input and community engagement as part of the 2023-2031 Housing Element Update process to date:
▪ Postcards sent to all property owners and tenants in the Town for a Housing Element Update Community Meeting (17,446 in total).
▪ Announcements provided in the local newspaper for all Housing Element Advisory Board (HEAB) meetings, community meetings, joint study sessions, and the 30-day public review period of the Initial Public Review Draft Housing Element (Los Gatos Weekly). ▪ 17 pop-up informational tables at the Los Gatos Farmers’ Market ▪ Information table at the Town Community Event (Spring in the Green). ▪ Social posts on five platforms, including Facebook, Instagram, Twitter, Nextdoor, and the What’s New page on the Town’s website for all Housing Element meetings, interactive on-line engagement, and public engagement opportunities.
▪ Public notices for Housing Element Advisory Board (HEAB) meetings and community meetings posted at Town Hall and the Library.
▪ Targeted email messaging that sends email updates to the Town’s Notify Me subscribers for the 2040 General Plan Update and Housing Element Update.
▪ 100 Property Owner Interest Forms mailed to all property owners on the Site Inventory. ▪ Online advertisements for each Housing Element meeting and interactive on-line engagement opportunities on the Town’s website, the Town’s General Plan Update website, and the Town’s Housing Element website.
▪ Use of the Balancing Act, a housing simulation tool, available on the Town’s dedicated Housing Element Update website for online public engagement.
▪ 201 submissions to the online site surveys and 42 completions of the Balancing Act housing simulation tool.
▪ Seven community group meetings for the 2040 General Plan Update, including discussion regarding density and affordable housing.
▪ Eleven HEAB meetings held to date.
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-11 ▪ Town Council meeting approving the draft Site Inventory. ▪ One community meeting hosted by the Santa Clara County Planning Collaborative for Santa Clara County municipalities.
▪ A public meeting hosted by West Valley Community Services; Envisioning an Inclusive Los Gatos:
Housing Element 101.
▪ A joint study session with the Town Council and Planning Commission to discuss housing growth options for the 2040 General Plan.
▪ A joint study session with the Town Council, Planning Commission, and HEAB with panelists from both market rate and non-profit developers.
▪ Participation in a Santa Clara County Equity Advisory Group Meeting.
Staff expects to continue this level of outreach and engagement throughout the remainder of the Housing Element Update process, including: information on the Town’s website; newspaper ads; social media posts; email notifications; a pop-up tables at the farmers market, library, and public events; and the website for the Housing Element Update (engagelosgatoshousing.com). Through staff’s engagement with the public at the Farmers’ Market, staff has heard community support for: housing options to meet the needs of seniors and large families; displacement prevention of existing naturally affordable housing units; housing of essential workers; and lower wage earners; and the Town incentives to attract affordable housing projects.
Housing Element Advisory Board
On August 3, 2021, the Los Gatos Town Council adopted Resolution 2021-032 establishing the HEAB to serve as an advisory board for preparation of the Housing Element Update. On September 21, 2021, the Town Council appointed four at-large members to the HEAB, which when combined with the nine members of the existing General Plan Committee (GPC), formed a 13-member oversight board.
Housing Element Website
The Town developed a focused Housing Element Update website “Engage Los Gatos Housing” to provide a forum for the Town’s online community to engage in the Housing Element Update process. The site provides an interactive place for the public to learn about and be a part of the Town’s work on housing and to help guide decision makers on the direction of future housing. This online platform has been open throughout the Town’s 6 th
Cycle Housing Element Update and updated regularly with key documents, key meeting dates and times, engagement opportunities, and other information.
Balancing Act Online Public Engagement
The Balancing Act tool was added on the Town’s Housing Element website to allow the public to participate and provide site selection feedback on the online platform. The Balancing Act is an online simulation-based tool for public engagement on potential housing sites. The Balancing Act provided an interactive map showing where potential housing could be placed to fulfill the Town’s RHNA.
Site Surveys Online Public Engagement
As a companion to the Balancing Act mapping tool opportunity to gather public comments about potential housing sites, surveys were made available for each individual site. The dedicated Housing Element Update website included opportunities to learn more about the Housing Element Update process and how to contribute to the process.
Property Interest Forms
Letters were sent to owners of properties that were considered by the Town to be candidates for housing sites.
The letters included a description of the Housing Element Update process and an invitation to include their property on the Sites Inventory List.
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10-12 HCD Draft Initial Review 2023-2031 Housing Element October 2022 Community Meetings
On August 25, 2021, Town staff participated with other municipalities as part of the Santa Clara County Housing Collaborative to conduct the Let’s Talk Housing meeting, a regional outreach effort. The online event introduced community participants to the Housing Element Update process. Town staff presented an introduction to the Housing Element Update and hosted breakout Zoom room discussions to learn more about community members housing experiences, needs challenges, and opportunities. There were 35 participants.
On March 2, 2022, West Valley Community Services (WVCS) hosted an online community engagement event, Envisioning an Inclusive Los Gatos: Housing Element 101. The online event provided an opportunity for the public to discuss opportunities with panelists for the Town to improve the housing community for everyone, ensuring inclusive, diverse, and affordable housing in Town. Community members, Housing Element experts, nonprofits, housing developers, and clients with experience in homelessness and affordable housing joined the conversation, discussing housing challenges, opportunities, and personal experiences. The featured panelists included:
▪ Ande Flower, Principal Planner at EMC Planning Group. ▪ Alison Cingolani, Policy and Research Associate at SV@Home. ▪ Bianca Neumann with EAH Housing.
▪ Two WVCS clients.
Housing Element Advisory Board Public Meetings (HEAB)
The HEAB is an advisory board created for the purposes of advising Town staff, providing a public forum for public involvement, and making recommendations to the Planning Commission and Town Council on updates to the Housing Element. The HEAB serves as an advisory body that provides input on specific tasks associated with the Housing Element Update. The role of the HEAB is to:
▪ Provide guidance on the development of the Housing Element Update; ▪ Provide an additional forum for public involvement;
▪ Forward milestone products to Town Council;
▪ Review the Draft Housing Element; and
▪ Make recommendations to the Planning Commission and Town Council.
The HEAB meeting agendas allow for two opportunities for public comment, at the beginning and end of each meeting, to provide the public an opportunity to react to the topics proposed and discussed. The public is invited to participate and provide comments at the HEAB meetings or in writing. Meetings are advertised through social media, the Town’s website, the Housing Element Update website, newspaper advertisements, postings at Town Hall and the Library, and emails to the General Plan Notify Me list. The following meetings were held via Zoom with public participation and will continue through the Housing Element Update process. ▪ October 21, 2021: Kickoff Meeting and Housing Element Overview. ▪ December 16, 2021: Review and Discussion of Technical Appendices. ▪ February 17, 2022: Review and Discussion of the Housing Site Inventory Analysis Process. ▪ April 21, 2022: Review and Discussion of the Housing Element Site Inventory. ▪ May 5, 2022: Review and Discussion of the Housing Element Site Inventory. ▪ May 19, 2022: Review and Discussion of the Housing Element Site Inventory. ▪ June 16, 2022: Review and Discussion of the Housing Element Draft Goals, Policies, and Programs. ▪ July 7, 2022: Review and Discussion of the Housing Element Draft Goals, Policies, and Programs. ▪ August 4, 2022: Review and Discussion of the Housing Element Draft Goals, Policies, and Programs. ▪ August 18, 2022: Review and Discussion of the full preliminary Housing Element Draft.
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October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-13 ▪ September 15, 2022: Receive Public Comments on the Initial Public Review Draft Housing Element.
In addition, the following groups have been invited to join the Housing Element Advisory Board Meetings:
▪ Los Gatos Chamber of Commerce.
▪ West Valley Community Services.
▪ Los Gatos Interfaith Community.
▪ Public and Private Schools.
▪ Los Gatos Anti-Racism Coalition.
▪ Los Gatos Rotary Club.
▪ Los Gatos Kiwanis Club.
▪ Los Gatos Lions Club.
▪ Architects, Designers, and Market and Affordable Housing Developers who typically do work within Town. ▪ The Town’s Senior Services Committee.
The list of organizations that were contacted to participate in the Housing Element Update process is provided in Appendix F.
Joint Study Sessions
On December 7, 2021, the Town Council and the Planning Commission held a Joint Study session via Zoom to discuss housing growth options and related analyses for Planning Commission and Town Council consideration of the 2040 General Plan Update. The public was encouraged to continue to submit comments and participate in the 2040 General Plan Update, including any preferences for housing growth options.
On April 6, 2022, the Town Council, Planning Commission, and HEAB participated in a Joint Study session via Zoom titled “Nuts and Bolts of Affordable Housing.” Several residents requested that the Town Council convene a study session with the Planning Commission and HEAB to learn more about the challenges of building affordable housing, particularly the financial and legal realities. The residents provided discussion questions to the panel members. The Town Council, Planning Commission, and HEAB members had the opportunity to ask questions of panel members. The panelists included the following:
▪ Josh Selo, West Valley Community Services Executive Director served as moderator for the panel discussion.
▪ Barbara Kautz, Goldfarb Lipman Attorneys, provided the current legal landscape for Housing Elements. ▪ Don Caprobres, Harmonie Park Development, provided expertise in market rate development and partnerships with affordable housing developers.
▪ Andrea Osgood, Eden Housing, provided hands-on knowledge of affordable housing development and working with market rate developers.
▪ Chris Neale, The CORE Companies, provided experience with both market and affordable housing development.
Public Hearings
On June 7, 2022, the Town Council considered and approved the HEAB’s recommendation for the draft Site Inventory at a public hearing via Zoom. There will be more public hearings to come following the first review by HCD.
Justice, Diversity, Equity, and Inclusion
The Town of Los Gatos values justice, equity, diversity, and inclusion (JEDI). The Town works proactively to ensure the rights and opportunities of everyone in Los Gatos and opposes any attempts to undermine the safety,
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10-14 HCD Draft Initial Review 2023-2031 Housing Element October 2022 security, and rights of any members of the community. The Town promotes equal treatment, equitable distribution of and access to resources, and engagement in issues affecting the lives of residents, workers, and visitors. The Town does not tolerate discrimination, racial injustice, or police brutality. The Town works toward realizing the values of diversity, equity, and inclusion by taking specific actions to become a more inclusive community.
In May of 2017, the Town Council affirmed a commitment to Los Gatos as a diverse, supportive, equitable, and inclusive community.
On June 5, 2020, the Town affirmed its commitment to stand in solidarity with the black community with a Proclamation from the Mayor.
On June 17, 2020, the Mayor signed the Obama Foundation’s Mayor’s Pledge, committing to review Police Department standards, report back to the community, and work on reforms.
On June 19, 2020, the Town launched a new webpage, “Becoming an Inclusive Community,” dedicated to outlining the shared values of justice, diversity, equity, and inclusion. In naming the new webpage “Becoming an Inclusive Community,” the Town acknowledged that there is work to do; and by clearly stating the commitment to inclusivity and diversity, the Town strives to take the steps needed to reach that goal. The dedicated webpage can be viewed at www.LosGatosCA.gov/Inclusivity and is kept updated on a regular basis with Town efforts and current information.
On July 30, 2020, the General Plan Update Advisory Committee (GPAC) held a special meeting to review and discuss the topics including racial, social, and environmental justice in the General Plan. As a result of this meeting, the first Element of the 2040 General Plan is a new Racial, Social, and Environmental Justice Element.
In 2020, the Town hosted three community workshops via teleconference to foster dialogue on racial and social justice and how Los Gatos can be more welcoming for all. The three conversations covered police reform, and housing. The inclusivity webpage contains full video recordings, presentations, and other information associated with these conversations.
Pop-up Community Outreach
Farmers Market Informational Booth
Town staff hosted a 2040 General Plan Update and Housing Element Update informational booth at the Los Gatos Farmers’ Market on Sundays from 9:00 a.m. to 12:00 p.m. on the following dates:
▪ June 27, 2021.
▪ July 18, 2021.
▪ August 8, 2021.
▪ August 29, 2021.
▪ September 19, 2021.
▪ October 10, 2021.
▪ October 31, 2021.
▪ November 21, 2021.
▪ December 19, 2021.
▪ January 19, 2022.
▪ February 13, 2022.
▪ March 13, 2022.
▪ April 10, 2022.
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October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-15 ▪ May 22, 2022.
▪ June 12, 2022.
▪ September 4, 2022.
▪ October 9, 2022.
The Farmers’ Market is held at the Town’s Plaza Park located in downtown Los Gatos. The informational booth provided an opportunity for planning staff to answer the public’s questions regarding housing opportunities and challenges within the Town, possible housing sites in Town, the General Plan Update and Housing Element Update process, and key participation opportunities. Informational handouts were provided to members of the public with links to the Town’s General Plan Update and Housing Element Update websites. Staff interacted with members of the community, including both Town residents and non-residents, at the Farmers Market. Staff members will continue hosting this informational booth once a month through the end of the Housing Element Update process.
Spring Into Green Informational Booth
On April 24, 2022, Town staff hosted an informational booth for the 2040 General Plan Update and Housing Element Update at the Town of Los Gatos’ Spring into Green event. The outdoor event celebrates Keep Los Gatos Beautiful Month, environmental sustainability, and Earth Day. The festivities included environmentally focused exhibitor booths, a tree planting ceremony, the weekly Los Gatos Farmers Market, family-friendly activities, food, and live music. The informational booth provided an opportunity for Town staff to answer the public’s questions regarding housing opportunities and challenges within the Town, possible housing sites in Town, the General Plan Update and Housing Element Update process and key participation opportunities. 2040 General Plan Update
On June 30, 2022, the Town Council adopted the 2040 General Plan. As mentioned above, the 2040 General Plan includes a new chapter: Racial, Social, and Environmental Justice. The Racial, Social, and Environmental Justice Element includes goals, policies, and implementation programs that encourage and support local efforts to increase participation in the local political process and to improve local conditions relative to racial, social, and environmental justice issues. The themes covered in this element lay the foundation for creating a more equitable and inclusive Town for all residents of Los Gatos. The Racial, Social, and Environmental Justice Element focuses on the empowerment of the community, and especially of the members of the community who have not been previously heard.
General Plan Update Advisory Committee (GPAC)
To help guide the update to the General Plan, the Town Council appointed a GPAC. The GPAC was composed of the Town’s General Plan Committee (GPC) and three additional residents. The GPC includes two Town Council members, three Planning Commissioners, and four residents. The GPAC served to review and discuss issues, opportunities, and the development the Draft 2040 General Plan. The GPAC held more than 35 public meetings throughout the General Plan Update process, listening to community input and contributing to the development of Land Use Alternatives, and the content of the General Plan document.
Public Participation to Affirmatively Furthering Fair Housing The Los Gatos public participation program was also responsive to AFFH, which requires local jurisdictions to conduct public outreach to equitably include all stakeholders in the housing element public participation program (see Section 10.1.3 for more complete information on AFFH).
Tribal Consultation
This public participation effort also includes formal consultation, pursuant to Government Code §65352.3, with representatives from nine Native American tribes that are present and active in Santa Clara County.
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10.2 Overview of Housing Needs and Constraints
This section summarizes the housing needs of Los Gatos as determined through the comprehensive housing data assessment and analysis presented in Appendix B and serves as the basis for housing goals, policies, and implementation programs. The housing summary gives an overview of population trends: characteristics of the housing stock; housing affordability; and special needs households.
10.2.1 Introduction
The Bay Area continues to see growth in both population and jobs, which means more housing of various types and sizes is needed to ensure that residents across all income levels, ages, and abilities have housing opportunities. While the number of people drawn to the region over the past 30 years has steadily increased, housing production has stalled, due to the high cost of land, contributing to the housing shortage that communities are experiencing. In many communities, this has resulted in residents being priced out, increased traffic congestion caused by longer commutes, and fewer people across income levels being able to purchase homes or meet surging rents.
10.2.2 Los Gatos Overview
As California works to face its housing crisis, the State of California has adopted rules to ensure that the burden of housing an economically diverse and growing population is shared proportionately among all California communities. The Town is committed to meeting the housing challenge, while preserving the essential character of the community. The Town faces some of the following conditions as summarized below:
▪ Population growth trends in the Town are significantly lower than the County and regional rates. ▪ The Town has more than double the County share of White population and a correspondingly smaller percent of minority populations.
▪ The Town has a higher share of high-income earners than the County and Bay Area. ▪ The income gap between lower income residents and higher income residents in the Town is higher than the average value for Bay Area jurisdictions.
▪ Poverty rates are very low in the Town.
▪ The Town is a net importer of workers.
▪ Housing prices in the Town are extremely high. Home prices are valued at more than $2 million, and rental prices increased by 61 percent from 2009 to 2019. ▪ The Town does not have any public housing and only a small portion of the Town contains Housing Choice Voucher usage.
Figures 10-4 and 10-5 on the following pages show the concentration of public housing buildings with less than seven units and buildings with eight to 35 units in Santa Clara County; and Housing Choice vouchers by census tract, respectively.
The remainder of this section provides an overview of the demographics, housing characteristics, and special housing needs that provide the context for Los Gatos’s 6 th Cycle Housing Element Update. A more complete
report on housing needs is presented in Appendix B.
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October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-17 Figure 10-4 Public Housing Buildings, Santa Clara County Source: California Department of Housing and Community Development AFFH Data Viewer
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10-18 HCD Draft Initial Review 2023-2031 Housing Element October 2022 Figure 10-5 Housing Choice Vouchers by Census Tract
Source: California Department of Housing and Community Development AFFH Data Viewer
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October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-19
10.2.3 Demographics
Population Trends
Generally, the population of the Bay Area continues to grow because of natural growth and because the strong economy draws new residents to the region. The population of the Town of Los Gatos increased by 10 percent from 2000 to 2020, which is below the 14.8 percent growth rate of the Bay Area. In 2020, the population of the Town was estimated to be 31,439 according to the Department of Finance. The population of the Town makes up
1.6 percent of Santa Clara County.
5 In the Town of Los Gatos, roughly 13.5 percent of its population moved during the past year, a number that is roughly the same as the regional rate of 13.4 percent. Table 10-2 shows population growth trends for the Town, Santa Clara County, and the Bay Area as a whole.
Table 10-2 Population Growth Trends
Geography 1990 1995 2000 2005 2010 2015 2020
Los Gatos 27,357 28,751 28,592 28,872 29,413 30,807 31,439 Santa Clara County 1,497,577 1,594,818 1,682,585 1,752,696 1,781,642 1,912,180 1,961,969 Bay Area 6,020,147 6,381,961 6,784,348 7,073,912 7,150,739 7,595,694 7,790,537 Source: California Department of Finance, E-5 series
Population by Age
The distribution of age groups in a town or city shapes what types of housing the community may need in the near future. An increase in the older population may mean there is a developing need for more senior housing options, while higher numbers of children and young families can point to the need for more family housing options and related services. There has also been a move by many to age-in-place or downsize to stay within their communities, which can mean more multi-family and accessible units are also needed.
In 2019, the median age in the Town was 47 years, an increase from the median age of 41 in 2000. The youth population of the Town under the age of 18 was 6,767 and the senior population 65 and older was 6,393. These age groups represent 22 percent and 20.8 percent, respectively, of the Town’s population. This reflects a nationwide aging trend related to the large baby boom generation, as well as local characteristics. The Town of Los Gatos is a community with a high quality of life that encourages residents to stay throughout their lives. Aging in place, attracting retirees, and high housing costs that favor older, more financially stable households all contribute to the aging trend in the Town. Figure 10-6 shows the distribution of senior and youth population by race.
5 To compare the rate of growth across various geographic scales, Table 10-2 shows population for the jurisdiction, county, and region indexed to the population in the year 1990. This means that the data points represent the population growth in each of these geographies relative to their populations in 1990. NOTE: Universe: Total population; For more years of data, please refer to the Data Packet Workbook, Table POPEMP-01.
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10-20 HCD Draft Initial Review 2023-2031 Housing Element October 2022 Figure 10-6 Senior and Youth Population by Race, Los Gatos, 2000-2019 Source: ABAG Housing Needs Data Workbook
Population by Race/Ethnicity
Understanding the racial makeup of a town, city, and region is important for designing and implementing effective housing policies and programs. These patterns are shaped by both market factors and government actions, such as exclusionary zoning, discriminatory lending practices, and displacement that has occurred over time and continues to impact communities of color today.
6 Figures 10-7 and 10-8 show the population distribution by race and ethnicities in the Bay Area, Santa Clara County, and specifically Los Gatos, through the period 2000 to 2019. Since 2000, the percentage of residents in the Town of Los Gatos identifying as “White, Non-Hispanic” has decreased by 13.3 percentage points. At the same time the percentage of residents of all “Other Race of Multiple Races, Non-Hispanic” has increased. In absolute terms, the “Asian/API, Non-Hispanic” population increased the most, while the “White, Non-Hispanic” population decreased the most.
In 2019, 72.3 percent of the Town’s population was White while 0.9 percent was African American, 14.8 percent was Asian, and 7.9 percent was Latinx. People of color in Los Gatos comprise a proportion below the overall proportion in the Bay Area as a whole.
7 6 See, for example, Rothstein, R. (2017). The color of law: a forgotten history of how our government segregated America. New York, NY & London, UK:
Liveright Publishing.
7 The Census Bureau’s American Community Survey accounts for ethnic origin separate from racial identity. The numbers reported here use an accounting of both, such that the racial categories are shown exclusive of Latinx status, to allow for an accounting of the Latinx population regardless of racial identity.
The term Hispanic has historically been used to describe people from numerous Central American, South American, and Caribbean countries. In recent years, the term Latino or Latinx has become preferred. This report generally uses Latinx, but occasionally when discussing US Census data, we use Hispanic or Non-Hispanic, to clearly link to the data source.
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October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-21 Figure 10-7 Population by Race and Ethnicity, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
Figure 10-8 Population by Race and Ethnicity, Los Gatos, 2000-2019 Source: ABAG Housing Needs Data Workbook
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10-22 HCD Draft Initial Review 2023-2031 Housing Element October 2022 Employment
Town residents most commonly work in the Financial and Professional Services industry. From January 2010 to January 2021, the unemployment rate in the Town decreased by three percentage points. Since 2010, the number of jobs located in the jurisdiction increased by 4,440 (28.8 percent).
Additionally, the jobs-household ratio in the Town has increased from 1.32 in 2002 to 1.59 jobs per household in 2018, which means the Town has more jobs than housing. A surplus of jobs relative to residents suggests the need to import workers. Los Gatos has more low-wage jobs than low-wage residents (where low-wage refers to jobs paying less than $25,000). At the other end of the wage spectrum, the Town has more high-wage residents than high-wage jobs (where high-wage refers to jobs paying more than $75,000).
10.2.4 Household Characteristics
Extremely Low-Income Households
Despite the economic and job growth experienced throughout the region since 1990, the income gap has continued to widen. California is one of the most economically unequal states in the nation, and the Bay Area has the highest income inequality between high- and low-income households in the State.
HUD annually updates it Section 8 Program income limits to reflect changes in median family income (MFI) levels for different size households and income limits for extremely low-, very low-, and low-income households. HCD must then annually update its income limits based on HUD’s annual revisions. California law and State Income Limits reference AMI that, pursuant to Health & Safety Code 50093(c), means the MFI of a geographic area, estimated by HUD for its Section 8 Program.
In Los Gatos, 65 percent of households make more than 100 percent of the AMI 8, compared to nine percent making less than 30 percent of AMI, which is considered extremely low-income. Regionally, more than half of all households make more than 100 percent AMI, while 15 percent make less than 30 percent AMI. In Santa Clara County, 30 percent AMI is equivalent to an annual income of $39,900 for a family of four. Many households with multiple wage earners, including food service workers, full-time students, teachers, farmworkers, public safety officers, and healthcare professionals can fall into lower AMI categories due to relatively stagnant wages in many industries.
Throughout the region, there are disparities between the incomes of homeowners and renters. Figures 10-9 and 10-10 show the AMI distribution and the poverty rate among different races and ethnicities in the Los Gatos area.
Typically, the number of low-income renters greatly outpaces the amount of housing available that is affordable for these households. In Los Gatos, the largest proportion of both renters and homeowners is found in the greater than 100 percent of AMI group.
8 Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located. Households making between 80 and 120 percent of the AMI are moderate-income, those making 50 to 80 percent are low income, those making 30 to 50 percent are very low income, and those making less than 30 percent are extremely low income. This is then adjusted for household size.
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October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-23 Figure 10-9 Area Median Income by Race and Ethnicity, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
People of color are more likely to experience poverty and financial instability as a result of Federal and local housing policies that have historically excluded them from the same opportunities extended to White residents. 9 These economic disparities also leave communities of color at higher risk for housing insecurity, displacement, or homelessness. In Los Gatos, Hispanic or Latinx and Other Race or Multiple Races (Hispanic and Non-Hispanic) residents experience the highest rates of poverty, followed by White (Hispanic and Non-Hispanic) residents.
Figure 10-10 Poverty Rate by Race and Ethnicity, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
9 Moore, E., Montojo, N. and Mauri, N., 2019. Roots, Race & Place: A History of Racially Exclusionary Housing the San Francisco Bay Area. Hass Institute.
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10-24 HCD Draft Initial Review 2023-2031 Housing Element October 2022 Tenure
The number of residents who own their homes compared to those who rent their homes can help identify the level of housing insecurity (i.e., ability for individuals to stay in their homes) in a town, city, and region. Generally, renters may be displaced more quickly if prices increase. As of 2019, there are a total of 12,083 housing units in Los Gatos, and fewer residents rent than own their homes: 35 percent versus 65 percent. By comparison, 43.6 percent of households in Santa Clara County are renters, while 43.9 percent of Bay Area households rent their homes.
Homeownership rates often vary considerably across race and ethnicity in the Bay Area and throughout the country. These disparities not only reflect differences in income and wealth, but also stem from Federal, State, and local policies that limit access to homeownership for communities of color, while facilitating homebuying for White residents. While many of these policies, such as redlining, have been formally disbanded, the impacts of race-based policy are still evident across Bay Area communities. In Los Gatos, 84 percent of Black households owned their homes, while homeownership rates were 72 percent for Asian households, 39 percent for Latinx households, and 65 percent for White households.
In many communities, homeownership rates for households in single-family homes are substantially higher than the rates for households in multi-family housing. In Los Gatos, 86 percent of households in detached singlefamily homes are homeowners, while 13 percent of households in multi-family housing are homeowners.
Displacement
Because of increasing housing prices, displacement is a major concern in the Bay Area. Displacement has severe impacts on low- and moderate-income residents. When individuals or families are forced to leave their homes and communities, they also lose their support network.
The University of California (UC), Berkeley has mapped all neighborhoods in the Bay Area, identifying their risk for gentrification. It finds that in Los Gatos there are no households that live in neighborhoods that are susceptible to or experiencing displacement and none live in neighborhoods at risk of or undergoing gentrification.
Equally important, some neighborhoods in the Bay Area do not have housing appropriate for a broad section of the workforce. UC Berkeley estimates that all households in Los Gatos live in neighborhoods where low-income households are likely to be excluded due to prohibitive housing costs. 10 Figure B-18 in Appendix B shows
household displacement risk and tenure.
10.2.5 Housing Stock Characteristics
Number of Homes
The number of new homes built in the Bay Area has not kept pace with the demand, resulting in longer commutes, increasing prices, and exacerbating issues of displacement and homelessness. The number of homes in Los Gatos increased by four percent from 2010 to 2020, which is below the growth rate for Santa Clara County and below the growth rate of the region’s housing stock during this time period.
Between 2015 and 2021, 502 housing units were issued permits in Los Gatos, which represents approximately 81 percent of the RHNA number of 619 units assigned in the 5th Cycle Housing Element. Approximately 66 percent of permits issued in Los Gatos were for above moderate-income housing, 24 percent were for moderate-income housing, and 10 percent were for low- or very low-income housing. 10 More information about this gentrification and displacement data is available at the Urban Displacement Project’s webpage:
https://www.urbandisplacement.org/. Specifically, one can learn more about the different gentrification/displacement typologies shown in Figure 18 at this link: https://www.urbandisplacement.org/sites/default/files/typology_sheet_2018_0.png. Additionally, one can view maps that show which typologies correspond to which parts of a jurisdiction here: https://www.urbandisplacement.org/san-francisco/sf-bay-area-gentrification-anddisplacement.
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October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-25 Housing Type
It is important to have a variety of housing types to meet the needs of a community today and in the future. In 2020:
▪ 60 percent of homes in Los Gatos were single-family detached. ▪ 13 percent were single-family attached.
▪ 9 percent were small multi-family (two to four units). ▪ 18 percent were medium or large multi-family (five or more units).
Between 2010 and 2020, the number of single-family units increased more than multi-family units. Los Gatos has a higher portion of detached single-family homes than other jurisdictions in the region.
The housing stock of Los Gatos is generally in good condition, and few homes require reconstruction or rehabilitation. The high quality of life, desirable location, walkable neighborhoods, and school system have provided financial incentive for property owners to rehabilitate homes and maintain them.
Home Prices
A diversity of homes at all income levels would create opportunities for all members of the Los Gatos community to live in Town.
▪ Ownership – The largest proportion of homes had a value greater than $2 million in 2019. Home prices increased by 98.4 percent from 2010 to 2020.
▪ Rental Prices – The typical contract rent for an apartment in Los Gatos was $2,270 in 2019. Rental prices increased by 61 percent from 2009 to 2019. To rent a typical apartment without cost burden, a household would need to make $90,960 per year.
11 Cost Burden
The U.S. Department of Housing and Urban Development (HUD) considers housing to be affordable for a household if the household spends less than 30 percent of its income on housing costs. A household is considered “cost-burdened” if it spends more than 30 percent of its monthly income on housing costs, while those who spend more than 50 percent of their income on housing costs are considered “severely cost-burdened.” In Los Gatos, 20 percent of renter households and 16 percent of owner households spend 30 percent to 50 percent of their income on housing, while 22 percent of renter households and 12 percent of owner households are severely cost-burdened and use the majority of their income for housing.
Minority communities are more likely to experience poverty and financial instability as a result of Federal and local housing policies that have historically excluded them from the same opportunities extended to White residents.
As a result, they often pay a greater percentage of their income on housing, and in turn, are at a greater risk of housing insecurity.
“Other Race” or “Multiple Races, Non-Hispanic” residents are the most cost-burdened, with 28 percent spending 30 to 50 percent of their income on housing, and Hispanic or Latinx residents are the most severely costburdened, with 22 percent spending more than 50 percent of their income on housing.
Neighborhood
100 percent of residents in Los Gatos live in neighborhoods identified as “Highest Resource” or “High Resource” areas by State-commissioned research, while none live in areas identified by this research as “Low Resource” or “High Segregation and Poverty” areas. These neighborhood designations are based on a range of indicators 11 Note that contract rents may differ significantly from, and are often lower than, current listing prices.
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10-26 HCD Draft Initial Review 2023-2031 Housing Element October 2022 covering areas such as education, poverty, proximity to jobs and economic opportunities, low pollution levels, and other factors.
12 10.2.6 Special Housing Needs
Some population groups may have special housing needs that require specific program responses, and these groups may experience barriers to accessing stable housing due to their specific housing circumstances. In Los Gatos, nine percent of residents have a disability and may require accessible housing. Additionally, six percent of Los Gatos households are larger households with five or more people, and likely need larger housing units with three bedrooms or more. Eight percent of households are female-headed families, which are often at greater risk of housing insecurity.
Large Households
Large households, with five or more persons, often have different housing needs than smaller households. If a town or city’s rental housing stock does not include larger apartments, large households who rent could end up living in overcrowded conditions. Large families are generally served by housing units with three or more bedrooms, of which there are 7,760 units in Los Gatos, as shown in Figure 10-11. Among these large units, most are owner-occupied, and few are renter-occupied, indicating the Town’s rental housing stock lacks larger apartments.
Figure 10-11 Housing Units by Number of Bedrooms and Tenure, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
Female-Headed Households
Households headed by one person are often at greater risk of housing insecurity, particularly female-headed households, who may be supporting children or a family with only one income. Female-headed households with children may face particular housing challenges, with gender inequality resulting in lower wages for women.
Moreover, the added need for childcare can make finding a home that is affordable more challenging.
In Los Gatos, the largest proportion of households is Married-Couple Family Households at 58 percent of the total, while Female-Headed Family Households make up 8 percent of all households. Additionally, 36 FemaleHeaded Households with Children (eight percent) fell in the Below Poverty Level category, while 26 FemaleHeaded Households without Children (five percent) fell in the Below Poverty Level category. 12 For more information on the “opportunity area” categories developed by HCD and the California Tax Credit Allocation Committee, see this website:
https://www.treasurer.ca.gov/ctcac/opportunity.asp. The degree to which different jurisdictions and neighborhoods have access to opportunity will likely need to be analyzed as part of new Housing Element requirements related to affirmatively furthering fair housing. ABAG/MTC will be providing jurisdictions with technical assistance on this topic this summer, following the release of additional guidance from HCD.
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-27 Figure 10-12 Percent of Children in Female Households, 2015-2019 Source: California Department of Housing and Community Development AFFH Data Viewer
HCD Draft Initial Review 2023-2031 Housing Element
10-28 HCD Draft Initial Review 2023-2031 Housing Element October 2022 Senior Households
Senior households often experience a combination of factors that can make accessing or keeping affordable housing a challenge. Seniors, defined as persons who are 65 years or older, may live on fixed incomes and may have disabilities, chronic health conditions, and/or reduced mobility. Seniors who rent may be at even greater risk for housing challenges than those who own, due to income differences between these groups.
When cost-burdened seniors are no longer able to make house payments or rent payments, displacement from their homes can occur, putting further stress on the local rental market or forcing residents out of their community.
Understanding how seniors might be cost-burdened is of particular importance due to their special housing needs, particularly for low-income seniors. Of seniors making less than 30 percent of AMI, 74 percent are spending the majority of their income on housing. For seniors making more than 100 percent of AMI, 86 percent are not costburdened and spend less than 30 percent of their income on housing.
People with Disabilities
People with disabilities face additional housing challenges. Encompassing a broad group of individuals living with a variety of physical, cognitive, and sensory impairments, many people with disabilities live on fixed incomes and are in need of specialized care, yet often rely on family members for assistance due to the high cost of care.
When it comes to housing, people with disabilities are not only in need of affordable housing, but accessibly designed housing, which offers greater mobility and opportunity for independence. Unfortunately, the need typically outweighs what is available, particularly in a housing market with such high demand. People with disabilities are at a high risk for housing insecurity, homelessness, and institutionalization, particularly when they lose aging caregivers. Overall, nine percent of people in Los Gatos have a disability of some kind.
State law also requires a Housing Element to examine the housing needs of people with developmental disabilities. Developmental disabilities are defined as severe, chronic, and attributed to a mental or physical impairment that begins before a person turns 18 years old. This can include Down’s Syndrome, autism, epilepsy, cerebral palsy, and mild to severe intellectual disability. Some people with developmental disabilities are unable to work, rely on supplemental security income, and live with family members. In addition to their specific housing needs, they are at increased risk of housing insecurity after an aging parent or family member is no longer able to care for them.
13 In Los Gatos, there are 123 persons with a developmental disability. Out of this nine percent of the Town’s population, 50 are children under the age of 18 (41 percent) and 73 are adults (60 percent). The most common living arrangement for individuals with disabilities in Los Gatos is the home of a parent/family/guardian.
Figure 10-13 Share of Population by Disability Status, 2019 Source: ABAG Housing Needs Data Workbook
13 For more information or data on developmental disabilities in your jurisdiction, contact the Golden Gate Regional Center for Marin, San Francisco and San Mateo Counties; the North Bay Regional Center for Napa, Solano and Sonoma Counties; the Regional Center for the East Bay for Alameda and Contra Costa Counties; or the San Andreas Regional Center for Santa Clara County.
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-29 Figure 10-14 Percent of Population with a Disability by Census Tract, 2019 Source: California Department of Housing and Community Development AFFH Data Viewer
HCD Draft Initial Review 2023-2031 Housing Element
10-30 HCD Draft Initial Review 2023-2031 Housing Element October 2022 Homelessness
Homelessness remains an urgent challenge in many communities across the State, reflecting a range of social, economic, and psychological factors. Rising housing costs result in increased risks of community members experiencing homelessness. Many residents who have found themselves housing insecure have ended up homeless in recent years, either temporarily or longer term. Addressing the specific housing needs of the unhoused population remains a priority throughout the region, particularly since homelessness is disproportionately experienced by people of color, people with disabilities, those struggling with addiction, and those dealing with traumatic life circumstances.
In Santa Clara County, the most common type of household experiencing homelessness is those without children in their care. Among households experiencing homelessness that do not have children, 87 percent are unsheltered. Of homeless households with children, most are sheltered in emergency shelters.
People of color are more likely to experience poverty and financial instability as a result of Federal and local housing policies that have historically excluded them from the same opportunities extended to White residents.
Consequently, people of color are often disproportionately impacted by homelessness, particularly Black residents of the Bay Area.
In Santa Clara County, White (Hispanic and Non-Hispanic) residents represent the largest proportion of residents experiencing homelessness and account for 44 percent of the homeless population, while making up 45 percent of the overall population.
Farmworkers
Across the State, housing for farmworkers has been recognized as an important and unique concern.
Farmworkers generally receive wages that are considerably lower than other jobs and may have temporary housing needs. Finding decent and affordable housing can be challenging, particularly in the current housing market.
In Los Gatos, there were no reported students of migrant workers in the 2019-20 school year. The trend for the region for the past few years has been a decline of more than two percent in the number of migrant worker students since the 2016-17 school year. The change at the County level is a 50 percent decrease in the number of migrant worker students since the 2016-17 school year.
10.2.7 Governmental and Non-Governmental Constraints
Housing development is affected by government regulations and other non-governmental forces, such as the cost of land and building materials and the availability and cost of housing loans. A Housing Element is required to investigate the impact of these constraints as they present themselves in the municipality in which the Housing Element is being prepared. Please see Appendix C for a full discussion governmental and non-governmental constraints in the Town of Los Gatos.
Revisions to the Zoning Code are necessary to achieve consistency with changes in State housing law.
Anticipated zoning changes are detailed in the implementation programs found in Section 10.5 of this Housing Element.
In terms of non-governmental constraints, land costs will remain a constraint to affordable housing. To help offset this constraint, programs to use Town-owned lands, such as Town parking lots could be utilized. Due to the cost of construction materials, the Town may subsidize affordable housing projects with available funds dedicated to housing in order to increase affordable housing inventory.
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-31
10.3 Site Inventory and Opportunities
This section summarizes the housing needs of the Town as determined through the comprehensive housing data assessment and analysis presented in Appendix D and serves as the basis for housing goals, policies, and actions. The housing summary gives an overview of population trends, characteristics of the housing stock, housing affordability, and special needs households.
10.3.1 Introduction
The Plan Bay Area 2050 Final Blueprint 14 forecasts that the nine-county Bay Area will add 1.4 million new households between 2015 and 2050. For the eight-year time frame covered by this Housing Element Update, HCD has identified the region’s housing need as 441,176 units. The total number of housing units assigned by HCD is separated into four income categories that cover housing types for all income levels, from very lowincome households to market rate housing. This calculation, known as the RHNA, is based on population projections produced by the California Department of Finance as well as adjustments that incorporate the region’s existing housing need. The adjustments result from recent legislation requiring HCD to apply additional adjustment factors to the baseline growth projection from California Department of Finance, in order for the regions to get closer to healthy housing markets. To this end, adjustments focus on the region’s vacancy rate, level of overcrowding and the share of cost-burdened households and seek to bring the region more in line with comparable ones. Compared to previous cycles, these new laws governing the methodology for how HCD calculates the RHNA resulted in a significantly higher number of housing units for which the Bay Area must plan compared to previous cycles.
10.3.2 Sites Summary
The vacant, partially vacant, and underutilized sites identified in this report are sufficient to accommodate Los Gatos’ Regional Housing Needs Allocation for the 6th Cycle planning period. The sites also accommodate the recommended buffer of 15 percent above RHNA, which would equal a capacity of approximately 299 additional units. This “cushion” for capacity above the base RHNA number is highly recommended because of the State’s no-net-loss policy, which precludes jurisdictions from approving development that results in an overall housing site deficit. The “cushion” essentially provides a degree of flexibility for policy makers as they make development decisions. Many of the sites identified in this report have existing uses that would need to be demolished before new housing could be constructed.
For communities like Los Gatos that are largely built-out and surrounded on all sides by other communities, redevelopment and densification is the only practical solution to providing a fair share of future housing for the San Francisco Bay Area. By its nature, such redevelopment is more costly and more time consuming than building new units on vacant land. To offset these constraints, higher densities are proposed in some areas.
These higher densities act as a market incentive to offset the added cost and time required to build new housing on redeveloped sites. Property owner interest will be pivotal for facilitating single-family site opportunities and policies to add housing through SB 9, which allows for up to four units on a property zoned for single-family residences. Table 10-3 provides a summary of the number of vacant and underutilized housing sites included in the Site Inventory for the Town of Los Gatos, and how they compare to the RHNA allocation plus a 15 percent buffer.
14 Plan Bay Area 2050 is a long-range plan charting the course for the future of the nine-county San Francisco Bay Area. It covers four key issues: the economy, the environment, housing and transportation.
HCD Draft Initial Review 2023-2031 Housing Element
10-32 HCD Draft Initial Review 2023-2031 Housing Element October 2022 Table 10-3 Summary of Vacant and Underutilized Housing Sites Item Very Low Low Moderate Above
Moderate Total
Total Estimated Housing for Sites in
Inventory 618 360 388 1,005 2,371
RHNA 537 310 320 826 1,993
Buffer (15 %) 81 46 48 124 299
RHNA + Buffer 618 356 368 950 2,292
Difference Between Housing Estimate and
RHNA + Buffer 0 4 20 55 79
SOURCE: EMC Planning Group, Inc; Town of Los Gatos
10.4 Energy and Resource Conservation
This section summarizes background information and actions being undertaken by the Town of Los Gatos to address energy and resource conservation. The information is excerpted from Chapter 8 (Environment and Sustainability Element) of the 2040 General Plan. For a full discussion of energy-related issues, please see Chapter 8, Section 8.6 (Energy) of the 2040 General Plan.
10.4.1 Opportunities for Energy Conservation
With the escalation in energy prices, consumers and builders have once again become more aware of energy costs. The Town must balance between development and environmental stewardship to maintain a strong economy and, at the same time, protect the environment. The following section highlights building standards and conservation codes contributing to that success.
Title 24 of the California Administrative Code sets forth mandatory energy standards for new development and requires adoption of an "energy budget." In turn, the home building industry must comply with these standards while localities are responsible for enforcing the energy conservation regulations. In 2015, the Town adopted a Solar Energy Code for the purpose of reducing energy costs for new residential developments and adopted an energy budget. In addition, State law (both the Residential Building Code and CalGreen) have standards that significantly reduce energy use in new residential construction.
Increasing energy costs, persistent drought, and climate change have reshaped how Californians think when it comes to buying new homes. Solar roof panels have become more commonplace over the past several decades, with both State and Federal tax credits available. Energy-efficient appliances and water wise landscaping have become amenities of choice for homebuyers. Developers can make the most of this paradigm shift by embracing “green” building practices that incorporate the energy and water efficiencies that consumers desire as well as environmentally friendly construction that minimizes waste and maximizes the use of resources.
Pacific Gas and Electric (PG&E) distributes electricity throughout Los Gatos, with supplies purchased from Silicon Valley Clean Energy (SVCE). PG&E supplies natural gas to the community as well. The Town is committed to its partnership with other local communities under the umbrella of SVCE. Through this partnership, Los Gatos residents and businesses receive carbon-free electricity at lower rates than those that arise from fossil fuel consumption. SVCE works to innovate and implement new clean energy programs and presents many of these innovations at community meetings, Earth Day events, and presentations to businesses. SVCE’s 2020 Community Benefits Summary indicates Los Gatos achieved the following results:
▪ $813,000 in on-bill savings for Los Gatos SVCE customers. ▪ 14,700 households and businesses served.
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-33 ▪ 99 percent reduction in electric utility-related emissions (34,897,000 pounds greenhouse gas emissions avoided by providing clean energy).
▪ $29,900 in cash payments to customers for generating surplus solar energy.
Achieving these goals adds to the overall GHG reduction strategy, with a focus on lowering dependence on carbon-based fuels and energy sources. Energy efficiency involves a careful balance of assessing energy sources, educating the public on home and business renewable energy use, implementing energy efficiency strategies, and encouraging and incentivizing widespread and ongoing implementation of those strategies. This in turn translates into lower ongoing costs to homeowners and renters.
10.4.2 Energy-Related Goals and Policies
As required by State housing law, the Housing Element must analyze energy conservation opportunities in residential development. In the following section, Goal HE-5 and its related policies and actions address energy conservation in residential development in Los Gatos.
The relevant Environment and Sustainability Element goals and policies in the 2040 General Plan are:
▪ Carbon-Neutral Energy (ENV-11.1). Support SCVE to continue to procure carbon-neutral energy for longterm and short-term supplies, including renewable resources. ▪ Energy Efficiency in Municipal Facilities (ENV 11.2). Invest in cost-effective energy efficiency and energy conservation programs in municipal facilities.
▪ Future Demand Reduction (ENV 11.3). Explore cost-effective, reliable, and feasible energy efficiency and demand reduction opportunities and continue to use the Sustainability Plan to include education programs for these opportunities.
▪ Conservation and Reduction (ENV 11.4). Maximize the conservation and efficient use of energy in existing and new residences, businesses, and municipal buildings in Los Gatos. ▪ Solar Systems (ENV 11.5). Support the maximum economic use of solar electric (photovoltaic) systems on-site to augment the renewable energy portfolio available to new development, businesses, and municipal facilities.
▪ Organic Waste Recycling (ENV 11.6). Comply with SB 1383 regulations to maximize energy recovery from organic materials such as yard trimmings, food waste, and other compostable resources.
HCD Draft Initial Review 2023-2031 Housing Element
10-34 HCD Draft Initial Review 2023-2031 Housing Element October 2022
10.5 Goals, Policies, and Implementation Programs
The Town does not build housing but, rather creates the policies and implementation programs to plan for where the housing can be located and how many units can be built on potential sites. The Town is responsible for enabling the production of housing by reducing regulatory barriers, providing incentives, and supporting programs that create or preserve housing, especially for vulnerable populations. The Town encourages production of a diversity of new housing to ensure an adequate supply is available to meet the needs of existing and future residents. To enable the construction of quality housing, the Town has identified the following goals, policies, and actions.
Goal HE-1 Facilitate All Types of Housing Construction.
The Town encourages the production of diverse new housing options to ensure that an adequate supply is available to meet the existing and future needs of all residents.
Policy HE-1.1 Adequate Sites
Designate sufficient, residentially zoned land at appropriate densities to provide adequate sites to accommodate Los Gatos’s RHNA for 2023–2031 and monitor residential development to ensure there is an adequate level of remaining development capacity.
Policy HE-1.2 Multi-Family Housing Densities
Encourage builders to develop projects on multi-family designated properties at the high end of the applicable density range.
Policy HE-1.3 Infrastructure
All new residential development shall be sufficiently served by public services and facilities, including pedestrian and vehicular circulation, bike lanes, water and wastewater services, police, fire, schools, and parks.
Policy HE-1.4 Housing Design
Ensure that all new housing is well designed and fosters a sense of community.
Policy HE-1.5 Variety of Housing Choices
Encourage the production of housing that meets the needs of all economic segments of the Town, including lower and moderate households, to maintain a balanced community.
Policy HE-1.6 Universal Design
Address the special housing needs of persons with disabilities through reasonable accommodation procedures, zoning provisions for supportive and group housing, homeowner accessibility grants, and by encouraging universal design.
Policy HE-1.7 Infill Opportunities in Single-Family Neighborhoods The Town shall increase access to opportunity for lower-income households by encouraging infill of smaller units in single-family neighborhoods (e.g., ADUs, multi-generational housing units, and SB 9 projects).
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10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-35 Goal HE-2 Provide New Affordable Housing.
Overall housing production has been too slow to keep pace with population growth over the past two decades.
This trend has increased demand on the supply side of housing and increased the cost of all housing. More affordable housing is needed for extremely low, very low-, low-, and middle-income households.
Policy HE-2.1 Financial Resources
Pursue expanding financial resources to support the production of affordable housing for the Town’s modest income residents and workforce.
Policy HE-2.2 Housing Vouchers
The Town shall support the Santa Clara County Housing Authority program for Housing Choice Vouchers (Section 8) to assist extremely low-, very low-, and low-income residents of the Town.
Policy HE-2.3 Mixed-Use Development
Encourage mixed–use developments that provide affordable housing close to employment centers and/or transportation facilities, particularly along arterials.
Policy HE-2.4 Rental Housing
Strive to ensure that at least 30 percent of the housing stock is rental units and continue to support the development of ADUs as a means of affordable rental housing.
Policy HE-2.5 Pre-Approved Accessory Dwelling Units
Collaborate with countywide efforts to develop pre-approved ADU plans suitable for Los Gatos, including designs that are Americans with Disabilities Act (ADA) accessible.
Policy HE-2.6 Promote Accessory Dwelling Unit Construction Encourage homeowners to construct detached rental ADUs in order to increase the housing stock of smaller rental units.
Policy HE-2.7 Senior Housing
Support development and maintenance of affordable senior rental and ownership housing and continue to work with existing senior lifestyle living and assisted living facilities in Los Gatos.
Encourage a variety of senior living options including downsizing and step-down independent ownership housing.
Policy HE-2.8 Equal Housing and Special Needs
Support the provision of permanent, affordable, and accessible housing that allows persons with special needs to live independent lives. For the purposes of this Housing Element “persons with special needs” include extremely low-income households, seniors, overcrowded and large-family households, the homeless population, those in need of emergency shelter, youth aging out of foster care, female-headed or single-parent households, and persons with disabilities, including developmental challenges.
Policy HE-2.9 Public/Private Partnerships
Work with and support collaborative partnerships with nonprofit agencies and housing developers to plan and develop a mix of affordable housing opportunities in Los Gatos using available funding.
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HCD Draft Initial Review 2023-2031 Housing Element
10-36 HCD Draft Initial Review 2023-2031 Housing Element October 2022 Policy HE-2.10 Repurposing Obsolete Commercial Buildings Encourage property owners to pursue opportunities to integrate housing in underutilized commercial centers, and to reuse excess or obsolete commercial buildings for affordable housing.
Policy HE-2.11 Smart Growth
Encourage “smart growth” that accommodates higher density residential uses near transit, bicycle-, and pedestrian-friendly areas of the Town that encourage and facilitate the conservation of resources by reducing the need for automobile use.
Policy HE-2.12 Housing on Land Owned by Religious Institutions Support the provision of affordable housing on congregational land through flexible development standards, including opportunities for reduced and shared parking arrangements.
Goal HE-3 Remove Barriers to the Production of Housing.
Governmental constraints on the development of housing for households of all income levels needs to be minimized. The success of development in some opportunity areas will be dependent upon consolidation of individual parcels into larger development sites. While some of the individual parcels within these areas are already under common ownership, many are individually owned.
Policy HE-3.1 Regulatory Incentives for Affordable Housing Facilitate the development of affordable housing through regulatory incentives and concessions, and/or financial assistance. Continue expediting the permit processing system for affordable residential development applications and proactively seek out new models and approaches in the provision of affordable housing.
Policy HE-3.2 Flexible Development Standards
Provide flexibility in development standards to accommodate new models and approaches to providing housing, such as live/work housing (permitted with a CUP), and micro units (in existing housing units), to allow housing to adapt to the needs of the occupants.
Policy HE-3.3 Efficient Development Processing
Explore continued improvements to the entitlement process to streamline and coordinate the processing of permits, design review, and environmental clearance.
Policy HE-3.4 Lot Consolidation
Educate and encourage lot consolidation and lot assemblage in mixed use and commercial areas.
Policy HE-3.5 Development Impact and Permit Fees
Consider reduced fees and alternative funding to facilitate affordable housing development.
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10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-37 Goal HE-4 Improve the Existing Housing Stock.
Providing more housing is a priority; but maintaining and preserving existing housing also plays a critical role.
Much of the older housing in the Town can be naturally affordable, as priced by the housing market, but must be well-maintained to provide quality housing across income levels.
Policy HE-4.1 Property and Housing Conditions
Support long-term maintenance and improvement of existing housing units through Code Enforcement and housing rehabilitation programs.
Policy HE-4.2 Multi-Family Housing Acquisition and Improvement Improve the quality of rental housing by acquisition and/or rehabilitation using the Affordable Housing Fund and support nonprofit housing providers in the acquisition and rehabilitation of older housing stock, and maintenance as long-term affordable housing.
Policy HE-4.3 Home Affordability Preservation
Preserve the affordability of units affordable to very low-, low-, and moderate-income households in the Town and Bonnie View Park, and enforce zoning regulations regarding conversion of mobile home parks in Los Gatos.
Policy HE-4.4 Naturally Occurring Affordable Units
Encourage maintaining naturally affordable housing types such as duplexes, townhomes, and mobile homes.
Policy HE-4.5 Preserve Residences of Historic or Architectural Value The Town shall encourage the preservation of residential buildings with historic or architectural value.
Goal HE-5 Encourage Green Building and Energy Conservation.
The Town is dedicated to addressing and mitigating climate change impacts and strives to be a leader in sustainable development. The General Plan promotes environmentally sound and socially equitable development by encouraging residential construction that promotes sustainable building and energy conservation practices.
Policy HE-5.1 Green Building
Encourage sustainable housing development throughout the Town by fostering awareness and encouraging the adoption of green building practices.
Policy HE-5.2 Solar Energy
Promote more efficient energy use and renewable energy to reduce the strain on the existing energy grid and reduce greenhouse gas emissions.
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HCD Draft Initial Review 2023-2031 Housing Element
10-38 HCD Draft Initial Review 2023-2031 Housing Element October 2022 Goal HE-6 Publicize Fair Housing Resources, Including those for Special Needs Populations.
Many programs that address housing access and affordability for lower income households are supported by the Town and its partners; however, many people who need these resources have trouble finding them. It is important for the Town to proactively inform residents about housing needs and resources, particularly those related to Fair Housing issues.
Policy HE-6.1 Fair Housing
Support and publicize housing programs that protect individuals’ rights and enforce fair housing laws prohibiting arbitrary discrimination in the building, financing, selling or renting of housing on the basis of race, color, ancestry, religion, national origin, sex, sexual orientation, age, disability/medical condition, familial status, marital status, source of income or other such factors.
Policy HE-6.2 Financial Assistance
Continue to encourage Los Gatos households to participate in financial assistance programs provided in the County of Santa Clara.
Policy HE-6.3 Housing for Persons with Special Needs
Continue to provide assistance to service providers who support special needs households and the homeless, such as Project Sentinel, Santa Clara County Housing Authority, and Santa Clara County Office of Supportive Housing. Support and publicize efforts and resources to provide coordinated services for persons with special needs in the Town.
Policy HE-6.4 Affordable Housing Awareness
Raise community awareness of the need for and benefits of affordable housing through Town outreach. Foster Town-wide discussion on housing needs, resources and ideas and improve communication channels and methods for meaningful dialogue.
Policy HE-6.5 Infill Opportunities in Single-Family Neighborhoods The Town shall provide educational materials for the public to promote ADUs, multi-generational housing units and SB 9 projects that create housing opportunities in single-family neighborhoods through the infill of smaller units.
Policy HE-6.6 Rental Dispute Mediation and Arbitration Ordinance The Town will work to prevent evictions of long term, low-income residents living in naturally affordable housing who can quickly lose their residence due to sudden rent increases or changes in property owners.
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10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-39
10.6 Implementation Programs
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
A Developer Forum
Establish an annual meeting
between staff and housing
developers to discuss constraints
and opportunities to affordable
and market rate housing projects.
HE-1.1 Adequate
Sites
HE-1.2 Multi-family
Housing Densities
HE-1.3 Infrastructure
HE-1.4 Housing
Design
HE-1.5 Variety of
Housing Choices
Community
Development
Department
Annually provide
focus group or
Town Hall
meeting
opportunities
None
required
B Large Site Program
Encourage property owners and
affordable housing developers to
target and market the availability
of sites with the best potential for
development by facilitating
meetings between willing
property owners of large sites.
To assist the development of
housing, especially for lower
income households, on sites
larger than 10 acres, the Town
will facilitate land divisions and lot
line adjustments to result in
parcels sizes between one half
to10 acres that can
accommodate multiple-family
developments affordable to lower
income households in light of
State, Federal, and local
financing programs.
HE-1.1 Adequate
Sites
HE-1.2 Multi-family
Housing Densities
HE-1.3 Infrastructure
HE-1.4 Housing
Design
HE-1.5 Variety of
Housing Choices
Community
Development
Department
Annually provide
focus group or
Town Hall
meeting
opportunities
None
required
C No Net Loss
Develop and implement an
ongoing formal evaluation
procedure (project-by-project) of
sites identified in the Site
Inventory to maintain sufficient
sites at appropriate densities to
accommodate RHNA for lower
income households. If an
approval of a development
results in a reduction of site
capacity below the residential
capacity needed to
accommodate the remaining
RHNA, including for lower
income households, the Town
HE-1.1 Adequate
Sites
HE-1.3 Infrastructure
HE-1.5 Town
Resources
HE-1.5 Variety of
Housing Choice
Community
Development
Department
Ongoing
tracking as
developments
are approved
None
required
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10-40 HCD Draft Initial Review 2023-2031 Housing Element October 2022 Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
will identify and zone sufficient
adequate sites at appropriate
densities to accommodate the
remaining RHNA.
D Additional Housing Capacity
Amend the North Forty Specific
Plan to increase the maximum
allowable density from 20
dwelling units per acre to more
than 30 dwelling units per acre
and increase the total number of
dwelling units allowed in the
Specific Plan.
HE-1.1 Adequate
Sites
HE-3.3 Efficient
Development
Processing
Community
Development
Department
December 2023 None
required
E Affordable Development on
Town Owned Property
Pursue opportunities to work with
an affordable housing developer
to construct affordable housing
on Town owned property.
HE-1.1 Adequate
Sites
HE-2.9 Public/Private
Partnerships
Community
Development
Department
Ongoing None
required
F Update Permit Software
System
Update the existing permit
software system to better monitor
average processing times for
ministerial and discretionary
development permits. Use data
to set baselines timelines to drive
improvements. Update the Town
planning and zoning regulations
and remove permit processing
constraints as appropriate.
HE-3.3 Efficient
Development
Processing
Community
Development
Department
Review and
update
regulations as
appropriate at
biannual years
None
required
G Report Annually on Housing
Availability
Prepare an annual housing report
for the review of the Town
Council including information on
progress made towards
achieving new construction need,
affordable housing
conserved/developed,
effectiveness of existing
programs and recommendations
for improvement. Consult and
collaborate with non-profit
providers, special need
providers, and other community
HE-1.1 Adequate
Sites
HE-1.5 Town
Resources
HE-3.3 Efficient
Development
Processing
HE-1.5 Variety of
Housing Choices
Community
Development
Department
Annual None
required
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October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-41 Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
resources in preparation and
evaluation of the report.
H Study detached single-family
condominium option.
Study the development of a new
floor area ratio standard for multifamily development when developed as detached singlefamily condominium units.
HE-1.5 Variety of
Housing Choices
HE-2.7 Senior
Housing
Community
Development
Department
Upon adoption
of this Housing
Element
None
required
I Coordination with Water and
Sewer Providers
Deliver the adopted Housing
Element to the San Jose Water
Company and the West Valley
Sanitation District so that they
can prioritize current and future
resources or services for housing
development that helps meet Los
Gatos’s RHNA for lower income
households.
HE-1.3 Infrastructure Community
Development
Department
Upon adoption
of this Housing
Element
None
required
J Helping Seniors Program
Provide financial assistance for
health, safety, emergency and
accessibility home repairs to lowincome seniors and low-income mobile homeowners through the
Below Market Price Program
funds, subject to availability of
Program funds.
HE-1.7 Universal
Design
HE-2.7 Senior
Housing
HE-2.8 Equal
Housing and Special
Needs
Community
Development
Department,
Town Council
Ongoing Town
Affordable
Housing
Funds
K Small Multi-Unit Housing
Update the Zoning Code to
facilitate low rise multi-family
structures in the Medium
Residential Density designation.
Promote this program through
publication, to include the
following information: Low rise
multi-family dwelling units
ranging from two to 10 units can
help meet the needs of families,
seniors and students. Permit
processing times tend to be
shorter than larger multi-family
buildings due to the low-rise
nature of the structures.
HE-1.5 Variety of
Housing Choices
HE-2.4 Rental
Housing
HE-3.3 Efficient
Development
Processing
Community
Development
Department
Ongoing None
required
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10-42 HCD Draft Initial Review 2023-2031 Housing Element October 2022 Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
L Rental Housing for Large
Families
Encourage development of multifamily rental housing that is greater than two bedrooms to
encourage the provision of
adequate rental housing for
families.
HE-1.5 Variety of
Housing Choices
HE-2.4 Rental
Housing
Community
Development
Department
Ongoing None
required
M Lot Consolidation
The Town will conduct outreach
to property owners in these areas
to identify meaningful incentives
to facilitate lot consolidation, lot
assemblage and redevelopment
in mixed use and commercial
areas. Based on this feedback,
within two years of Housing
Element adoption, the Town will
consider the development of a
Lot Consolidation Ordinance to
include specific incentives such
as: flexible development
standards such as reduced
setbacks, increased lot coverage,
increased heights, reduced
parking, reduced fees, and
streamlined permit processing
through administrative staff
review. Upon adoption of the
Ordinance, the Town will work
with property owners that are
receptive to lot consolidation/lot
assemblage to assist them in
facilitating the parcel merge
process in a streamlined and
timely manner.
HE-3.4 Lot
Consolidation
Community
Development
Department
Within two years
of Housing
Element
adoption
None
required
N Below Market Price Program
Conduct a study to evaluate the
existing BMP Program and
recommend changes to the
program to increase the number
of units constructed. The study
will include evaluation of the
implementation of the BMP
Program to date, including
impacts to market rate housing
related to current market
conditions, project applications,
HE-2.7 Senior
Housing
HE-3.1 Regulatory
Incentives for
Affordable Housing
HE-4.1 Property and
Housing Conditions
HE-4.2 Multi-family
Housing Acquisition
Improvement
Community
Development
Department
Complete study
by June 2025
and implement
recommended
policy actions by
December 2028.
Town
Affordable
Housing
Fund
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-43 Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
estimated affordable housing
requirements, fee collection, and
actual construction of affordable
housing units to address
constraints based on the
outcome of the evaluation. The
study will evaluate the feasibility
of requiring BMP’s for senior
assisted living, senior
independent living, and senior
communities.
O Establish a Commercial
Linkage Fee
Conduct a nexus study and
amend the Municipal Code to
include a linkage fee if
appropriate. A commercial
linkage fee is an impact fee
levied on commercial
development for the provision of
affordable housing. Before
levying an impact fee, the Town
is required to complete a nexus
study that shows the linkage
between new development and
the increased demand for
housing.
HE-3.5 Development
Impact and Permit
Fees
Community
Development
Department
Complete study
by June 2024
and implement
recommended
actions by
December 2024.
None
required
P Funds for Development for
Extremely Low Income (ELI)
Households
Continue to encourage the
creation of housing that is
affordable to extremely lowincome households by allocating a percentage of the Town
Affordable Housing (Below
Market Price) Fund to subsidize
housing for extremely low-income
households. As part of the
Town’s annual budget process,
provide a priority for funding ELI
developments that may be
submitted to the Town with the
Town’s BMP monies. Update the
allocation as recommended by
the BMP study. Additionally,
provide staff technical assistance
with the preparation of Tax Credit
or grant funding applications or
HE-3.1 Regulatory
Incentives for
Affordable Housing
HE-4.1 Property and
Housing Conditions
HE-4.2 Multi-family
Housing Acquisition
Improvement
Community
Development
Department
Ongoing Town
Affordable
Housing
Fund
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Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
conducting local Tax Equity and
Fiscal Responsibility Act
(TEFRA) hearings to facilitate the
financing of proposed housing
projects in Los Gatos.
Q Habitat for Humanity Home
Repair Program
Work with Habitat for Humanity to
promote the Home Repair
Program offered by Habitat,
which responds to health,
accessibility, and safety concerns
in homes owned by low-income
families, veterans, and senior
residents on limited incomes. By
fixing the long-deferred
maintenance projects, critical
repairs and code violations, this
program helps families stay in
their already affordable homes
and avoid displacement.
HE-2.7 Senior
Housing
HE-2.8 Equal
Housing and Special
Needs
HE-4.1 Property and
Housing Conditions
Community
Development
Department
Annually meet
with Habitat for
Humanity
None
required
R Development Impact and
Permit Fees
Review the financial needs of
affordable housing projects,
determine whether or not Town
fees can be reduced to facilitate
affordable housing development,
and identify options for the Town
to offset the foregone revenues
from other sources.
HE-3.5 Development
Impact and Permit
Fees
Community
Development
Department,
Parks and
Public Works,
Town Council
January 2023 to
January 2031
Staff Time
S Affordable Housing
Development
Provide incentives for affordable
housing development, including
density bonus, fee deferrals or
reductions, and reduced fees for
studio units. The Town shall also
provide annual outreach to attract
and support affordable housing
developers in the Town, including
developers of senior housing,
extremely low-income units, and
permanent supportive housing for
persons with disabilities and
developmental disabilities.
HE-1.2 Multi-family
Housing Densities
HE-3.5 Development
Impact and Permit
Fees
HE-2.7 Equal
Housing and Special
Needs
HE-2.9 Public/Private
Partnerships
HE-3.1 Regulatory
Incentives for
Affordable Housing
Community
Development
Department,
Town Council
January 2023 to
January 2031
Staff Time
and the
Town
Affordable
Housing
Fund
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-45 Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
T Purchase Affordability
Covenants in Existing
Apartments
Create a program for the Town to
purchase affordability covenants
with BMP funding to increase the
supply of affordable housing or
“buy-down” existing affordability
covenants to have deeper
affordable units in existing rental
properties. This program is
analogous to purchasing
covenants in new developments
in conjunction with the BMP
program, but for existing
apartments.
In existing and new rental
developments, the Town could
provide a rehabilitation loan or
another form of subsidy to a
rental property owner in
exchange for securing
affordability covenants on a
percentage of units and the
owner’s agreement to restrict
rents on these units to levels that
would be affordable to very lowand low-income households.
HE-2.1 Financial
Resources
Community
Development
Department,
Town Council
January 2023 to
January 2031
Town
Affordable
Housing
Fund
U Accessory Dwelling Units
Waive building fees when an
ADU is deed restricted for very
low- and low-income households.
HE-2.4 Rental
Housing
HE-3.5 Development
Impact and Permit
Fees
Community
Development
Department
Amend the Fee
Schedule within
one year of
Housing
Element
adoption
Below
Market
Price
Housing Inlieu Fees
V Density Bonus
Conduct a study to evaluate the
existing Density Bonus
Ordinance and recommend
changes to increase the number
of units constructed. The study
will include an evaluation of the
implementation of the ordinance
to date and actual construction of
affordable housing units that
utilized the Density Bonus.
Additional density and height
incentives beyond what the State
HE-3.1 Regulatory
Incentives for
Affordable Housing
HE-2.3 Mixed-Use
Development
HE-2.8 Equal
Housing and Special
Needs
Community
Development
Department
Complete study
by June 2026
and implement
recommended
actions by
December 2029
None
required
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Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
requires will be considered (i.e.,
fee reductions, add free density
of BMP units). The study shall
recommend improvements to the
Ordinance based on the outcome
of the evaluation.
W Affordable Housing Overlay
Zone (AHOZ)
Continue to encourage
development of housing
affordable to all income levels on
property within this Town Overlay
Zone. The Overlay property on
Knowles Avenue is a key site for
a mixed income affordable
housing project.
HE-3.1 Regulatory
Incentives for
Affordable Housing
HE-2.7 Senior
Housing
HE-2.8 Equal
Housing and Special
Needs
HE-2.9 Public/Private
Partnerships
HE-2.11 Policy Smart
Growth
Community
Development
Department
Complete by
2025
None
required
X Congregational Land Overlay
Zone
Expand site opportunities by
allowing affordable housing on
religious sites. Study new
Congregational Land Overlay to
build upon what is available
through AB 1851 and help
congregations by connecting
them with affordable housing
development partners.
HE-3.1 Regulatory
Incentives for
Affordable Housing
HE-2.7 Senior
Housing
HE-2.8 Equal
Housing and Special
Needs
HE-2.9 Public/Private
Partnerships
HE-2.11 Policy Smart
Growth
Community
Development
Department
Complete by
2025
None
required
Y Nonprofit Affordable Housing
Providers
Support the efforts of nonprofit
affordable housing organizations
that provide housing services in
Los Gatos. Encourage the
participation of these providers in
developing housing and meeting
the affordable housing needs of
Los Gatos households
particularly extremely low-income
households. Staff will meet with
nonprofit groups on at least on an
annual basis to discuss
constraints to development and
develop strategies and actions
for affordable housing
development, including
HE-2.3 Mixed-Use
Development
HE-2.7 Senior
Housing
HE-2.8 Equal
Housing and Special
Needs
HE-2.9 Public/Private
Partnerships
Community
Development
Department
Annually None
required
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-47 Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
incentives for the development of
affordable housing as provided
under the Affordable Housing
Overlay Zone.)
Z Increased Range of Housing
Opportunities for the
Homeless
Continue to support the County
of Santa Clara’s Continuum of
Care plan, as well as the
“Housing 1000” campaign by
“Destination: Home” to provide
housing opportunities for
homeless households, including
emergency shelter, transitional
housing, and permanent
affordable housing opportunities.
HE-2.8 Equal
Housing and Special
Needs
HE-2.9 Public/Private
Partnerships
Community
Development
Department
January 2023 to
January 2031
County
CDBG
AA Reasonable Accommodation
Ordinance
Continue to enforce Section
29.10.505–530 of the Town Code
to ensure equal access to
housing for persons with
disabilities under the Fair
Housing Act and provide specific
procedures for requesting and
granting reasonable
accommodations. Review
annually for trends and develop
new procedures and/or materials
in response to annual review.
HE-2.8 Equal
Housing and Special
Needs
Community
Development
Department
Annually None
required
AB Accessibility Design Features
Encourage residential
development that incorporates
accessible design features to
meet the needs of as many users
as possible. The intent is to
reduce the potential for
occupants to be displaced from
their homes due to disability, to
allow those persons to visit
neighboring dwelling units, and to
increase to number of accessible
dwelling units in the local housing
supply that meet long term
housing needs. Remove
identified regulatory constraints
Policy HE-1.6
Universal Design
HE-2.8 Equal
Housing and Special
Needs
HE-2.9 Public/Private
Partnerships
Community
Development
Department
Review and
update
regulations as
necessary; at
least every three
years
None
required
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Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
on housing for persons with
disabilities.
AC Housing Opportunities for
Persons Living with
Disabilities
Support the provision of housing
for the disabled population,
including persons with
developmental disabilities,
through several means,
including:
▪ By-right zoning for licensed
residential care facilities (six
or fewer residents) in all
residential zones, and
provisions for larger care
facilities (seven or more
residents) in multi-family
residential zones subject to a
conditional use permit.
▪ Treatment of supportive and
transitional housing as a
residential use of property,
and subject only to those
restrictions and processing
requirements that apply to
other residential dwellings of
the same type in the same
zone.
▪ Programs to facilitate
affordable housing, including
Density Bonus and
Affordable Housing Overlay.
▪ Encouraging affordable
housing developers to
integrate supportive housing
units, increasing project
competitiveness for Tax
Credits and other funding
sources.
▪ Supporting the creation of
ADUs in all residential
districts.
HE-1.6 Universal
Design
HE-2.8 Equal
Housing and Special
Needs
HE-6.1 Fair Housing
HE-6.3 Housing for
Persons with Special
Needs
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-49 Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
AD Special Needs Housing
Prioritize special needs housing
by allowing for reduced
processing times and streamlined
procedures for applicable
zoning/land use applications.
Include preferential handling of
special needs populations in
management plans and
regulatory agreements of funded
projects.
HE-2.7 Senior
Housing
HE-2.8 Equal
Housing and Special
Needs
HE-2.9 Public/Private
Partnerships
HE-3.3 Efficient
Development
Processing
Community
Development
Department
January 2023 to
January 2031
None
required
AE Rental Dispute Resolution
Program
Continue the administration of
the Rental Dispute Resolution
Program and consider revisions
as necessary to make the
program as effective as possible
in protecting both tenants’ and
landlords’ rights.
HE-6.6 Rental
Dispute Mediation
and Arbitration
Ordinance
Community
Services
Department
January 2023 to
January 2031
Program
fees
AF Rental Assistance for Persons
with Developmental
Challenges
Work with local and/or regional
partners to provide rental
assistance for persons with
developmental challenges.
Efforts will include the following:
▪ Work with the California
Department of
Developmental Services local
Regional Center to identify
the housing needs specific to
developmentally challenged
persons residing in Los
Gatos and assist in
identifying available housing
that meets those needs.
▪ Encourage qualifying
Regional Center clients
residing in Los Gatos to
apply for appropriate rental
assistance programs.
▪ Identify outside funding
sources, such as regional or
State programs, that could
HE-2.7 Senior
Housing
HE-2.8 Equal
Housing and Special
Needs
HE-2.9 Public/Private
Partnerships
Community
Development
Department
Annually follow
up on a periodic
basis with
service
providers to
determine
outcomes for
referrals and
update referral
process and
timelines
accordingly
2023-2031
period
None
required
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Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
provide rental assistance for
developmentally challenged
persons living in Los Gatos.
▪ Make referrals to non-profit
service providers with rental
assistance or rental voucher
programs such as West
Valley Community Services
and the Housing Authority of
Santa Clara County.
AG Supportive Services for the
Homeless
Continue to support community
and nonprofit organizations that
provide supportive services for
homeless persons in Los Gatos
in part by continuing to fund the
Town's annual grant and
disseminating opportunities for
other agency funding to West
Valley Community Services
(WVCS), in order to support its
Comprehensive Emergency
Assistance Program (CEAP).
HE-2.3 Mixed-Use
Development
HE-2.7 Equal
Housing and Special
Needs
Community
Development
Department
January 2023 to
January 2031
Town of
Los Gatos
AH Stabilize Rents
Study and implement
recommendations with regard to
the Town’s Rental Dispute
Mediation and Arbitration
Ordinance 2128 to help further
stabilize rents for long-term
residents.
HE-2.3 Mixed-Use
Development
HE-2.4 Rental
Housing
HE-6.6 Rental
Dispute Mediation
and Arbitration
Ordinance
Community
Development
Department
Complete study
by January 2024
and implement
Municipal Code
changes by
June 2024
AI Reduce Parking Standards
Initiate a study to determine
specific updates for the Municipal
Code to address the following:
▪ Align parking requirements
with the preparation of
Objective Design Standards.
▪ Reduce parking requirements
near transit.
▪ Remove guest parking
requirements.
▪ Allow parking to be
unbundled from residential
units.
3.1 Regulatory
Incentives for
Affordable Housing
2.7 Senior Housing
2.8 Equal Housing
and Special Needs
Community
Development
Department
Complete study
by January 2024
and implement
Municipal Code
changes by
June 2024
None
required
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-51 Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
AJ Allow for 100 Percent
Affordable Residential
Development in Mixed-Use
General Plan Designations
Amend the General Plan and the
Municipal Code to allow for 100
percent affordable residential
development without the
requirement of commercial uses.
HE-3.1 Regulatory
Incentives for
Affordable Housing
Community
Development
Department
Implement
General Plan
and Municipal
Code changes
by June 2024
None
required
AK Housing Conditions Survey
Seek funding through the Below
Market Price Program funds, or
other funding sources, to conduct
a survey of housing conditions in
the Town. The survey shall
identify housing units in need of
rehabilitation or replacement.
HE-4.1 Property and
Housing Conditions
Community
Development
Department
January 2023 to
January 2031
Town
Affordable
Housing
Fund
AL SB 35 Process Improvements
Develop an SB 35 checklist and
written procedures for processing
SB 35 applications to ensure
efficient and complete application
processing.
HE-3.3 Efficient
Development
Processing
HE-3.1 Regulatory
Incentives for
Affordable Housing
Community
Development
Department
Implement by
December 2023
Staff Time
AM Low Barrier Navigation
Centers
Amend the Zoning Code
Definitions to include the
definition for “Low Barrier
Navigation Center” consistent
with State law. Allow at least two
mixed-use zoning districts to
permit low barrier navigation
centers as a by-right use.
HE-2.7 Equal
Housing and Special
Needs
Community
Development
Department
Implement by
December 2023
Staff Time
AN Fair Housing Law Education
Educate the community about
landlords and renters rights and
responsibilities under Fair
Housing law, needs and benefits
of affordable housing, and
available resources in the Town
by posting information on the
Town’s website, social media
posts and/or brochures,
distributing information through
the business licensing
recertification process, and
HE-6.4 Affordable
Housing Awareness
Community
Development
Department,
Finance
Department,
California
Department of
Developmental
Services
Resources
posted by end of
January 2023
Staff Time
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Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
posting fair housing posters in
Town Hall, the community center
and the library. The Town will
continue to work with and fund
local nonprofits, and to
collaborate with local homeless
service providers to provide
information on homeless needs
in the town.
AO Transit Oriented Development
As part of the comprehensive
Zoning Code update, establish
development standards for
transit-oriented development
located within existing transit
areas that promote sustainable
land use practices which reduce
vehicle trips and allow for mixeduse developments as well as stand-alone residential. In
addition, the Town shall provide
for CEQA streamlining consistent
with the provisions of SB 375.
HE-2.10 Policy Smart
Growth
Community
Development
Department
January 2023 to
January 2031
Staff Time
AP Preserve “At-Risk” Affordable
Housing Units
Continue to monitor affordable,
multi-family housing units in the
Town to ensure that they retain
their affordability status.
HE-4.3 Home
Affordability
Preservation
Community
Development
Department
January 2023 to
January 2031
None
required
AQ Rental Housing Conservation
Program
Continue to implement Section
29.20.155 of the Town Code that
addresses conversions of
residential use, specifically
Section 29.20.155(a)(2), which
requires that any proposed
conversion satisfy the housing
goals and policies as set forth in
the 2040 General Plan.
HE-2.4 Rental
Housing
HE-4.1 Property and
Housing Conditions
Community
Development
Department
January 2023 to
January 2031
None
required
AR CDBG and other Housing
Rehabilitation Programs
Continue to participate in the
County of Santa Clara
Community Development Block
Grant Joint Powers Authority to
facilitate participation in County
HE-4.1 Property and
Housing Conditions
HE-4.3 Home
Affordability
Preservation
Community
Development
Department
January 2023 to
January 2031
General
Fund
10. Housing Element
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Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
CDBG Housing Rehabilitation
programs by Town residents.
AS Countywide Home Repair
Programs
Continue to support countywide
programs (Habitat for Humanity
East Bay/Silicon Valley,
Rebuilding Together, Housing
Trust of Santa Clara County, etc.)
that provide assistance with
minor home repairs and
accessibility improvements for
lower income households,
including special needs
households.
Support annual funding requests
submitted by rehabilitation
agencies to the County of Santa
Clara, and provide local technical
assistance as needed to
nonprofits submitting funding
applications to the County and/or
applying for building permits
through the Town’s building
permit process.
Contribute funding from the
Town’s Below Market Price
monies to support these
programs. The Continue to
participate as a member of the
County of Santa Clara JPA.
Continue to provide staffing to
the County Technical Advisory
Committee (TAC), which reviews
annual applications for funding
and helps formulate funding
recommendations to the Board of
Supervisors.
HE-4.1 Property and
Housing Conditions
HE-6.3 Housing for
Persons with Special
Needs
Community
Development
Department;
County of
Santa Clara
January 2023 to
January 2031
None
required
AT Energy Conservation
Opportunities
Continue to enforce State of
California Title 24 requirements
for energy conservation.
HE-5.1 Green
Building
Community
Development
Department
Ongoing None
required
AU Residential Rehabilitation
Program
HE-4.1 Property and
Housing Conditions
HE-5.1 Green
Building
Community
Development
Department
January 2023 to
January 2031
Town
Affordable
Housing
Fund
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Policy(ies)
Responsible
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Department(s)
Time Frame Funding
Source
Create a new program to assist
lower income homeowners,
including senior and disabled
households, with funding for
home repairs and improvements.
The program could incentivize
providing grants for the following
activities: accessibility
improvements; exterior or interior
home repair; repair of fencing
and/or landscaping; plumbing;
exterior painting; roof repair; and
similar activities.
AV Solar Energy
Continue to expedite solar panel
installation by requiring only
ministerial building permits.
HE-5.1 Green
Building
HE-5.2 Solar Energy
Community
Development
Department
Ongoing None
required
AW Town Housing Resources
Guide
Continue to provide a guide to
developments that include
affordable housing units as part
of the Housing Resources Guide
posted on the Town’s website,
and available at Town Hall,
Library, and other Town facilities.
Publicize available
warming/cooling centers as
provided by the Santa Clara
County of Office of Supportive
Housing during inclement
weather episodes.
HE-5.1 Green
Building
HE-6.4 Affordable
Housing Awareness
Community
Development
Department
Update list
annually
None
required
AX Santa Clara County Fair
Housing Consortium
Support the efforts of the Santa
Clara County Fair Housing
Consortium, as follows. Continue
to make referrals through Project
Sentinel and provide updated fair
housing information on the
Town’s website and at public
locations through the Town, such
as the Adult Recreation Center,
Library, Farmers Market and
public kiosks. Through an
ongoing partnership with Project
Sentinel, a member of the
Consortium and the Town’s
HE-5.2 Solar Energy
HE-6.3 Housing for
Persons with Special
Needs
Community
Development
Department
January 2023 to
January 2031
None
required
10. Housing Element
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Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
service administrator for the
Rental Dispute Resolution
Program, Town staff is able to
attend the Consortiums annual
Fair Housing Symposium,
receive training, and disseminate
fair housing information
(including how to contact
Consortium agencies for
assistance) to members of the
public who contact the Town
about a potential fair housing
related matter.
AY Senior Housing Resources
Provide regularly updated senior
housing resource materials at the
Adult Recreation Center, Library,
and Farmers Market.
HE-6.1 Fair Housing
HE-6.2 Financial
Assistance
HE-6.3 Housing for
Persons with Special
Needs
HE-6.4 Affordable
Housing Awareness
Community
Development
Department
Update
materials
annually
None
required
AZ Developmental Challenges
Continue to work with the local
California Department of
Developmental Services
Regional Center to proactively
inform families within Los Gatos
about housing and services
available for persons with
developmental challenges, to
include an informational
brochure, information on the
Town’s website, and housingrelated training workshops for individuals and families.
HE-6.1 Fair Housing
HE-6.3 Housing for
Persons with Special
Needs
HE-6.4 Affordable
Housing Awareness
Community
Development
Department,
California
Department of
Developmental
Services
Update
materials
annually
None
required
BA Use a Variety of
Communication Methods
Broadcast information about
available housing resources
through a variety of
communication methods across
media, technological nonprofit
organizations and traditional in
person outreach methods, such
as the Farmers Market, Library,
and community center, with a
particular focus on reaching the
very low- and low-income
demographic and those who may
HE-6.1 Fair Housing
HE-6.4 Affordable
Housing Awareness
Community
Development
Department,
California
Department of
Developmental
Services
Quarterly
January 2023 to
January 2031
None
required
HCD Draft Initial Review 2023-2031 Housing Element
10-56 HCD Draft Initial Review 2023-2031 Housing Element October 2022 Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
not have access to online
resources.
BB Educate Single-Family
Property Owners Regarding InFill Housing Options
Create and distribute educational
materials to include information
about the process to construct
ADU’s, multi-generational
housing, and options available
with Senate Bill SB 9.
HE-1.5 Variety of
Housing Choices
HE-1.7 Infill
Opportunities in
Single-Family
Neighborhoods
HE-6.1 Fair Housing
HE-6.4 Affordable
Housing Awareness
Community
Development
Department,
California
Department of
Developmental
Services
Quarterly
January 2023 to
January 2031
None
required
BC Zoning Text Amendments for
Special Needs Housing
Pursuant to recent changes in
State law, the Town’s Municipal
Code may be modified to better
facilitate the provision of a variety
of housing types. These Code
revisions include:
▪ Amend parking standards for
emergency shelters from a
ratio based on the size of the
structure to a ratio based on
the number of shelter staff
(per AB 139).
▪ Eliminate current spacing
requirements between
shelters and residentially
zoned properties and
schools.
▪ Develop and adopt by- right
processing procedures for
Low Barrier Navigation
Centers (per AB 101).
▪ Allow small employee
housing (six or fewer) in all
zone districts where singlefamily residential is
permitted.
HE-2.7 Equal
Housing and Special
Needs
Community
Development
Department
January 2024 None
required
BD Affordable Development on
Religious Sites
Pursue and expand development
opportunities by allowing
affordable housing on religious
sites per AB 2244.
HE-2.12 Housing on
Land Owned by
Religious Institutions
Community
Development
Department
Ongoing None
required
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-57 Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
BE Community Education on
Housing Needs
Provide education on the
problems and needs of affordable
housing as a means of changing
negative attitudes towards the
provision of affordable housing.
HE-6.4 Affordable
Housing Awareness
Community
Development
Department
Ongoing None
required
BF Zoning Code Amendments
The Town will initiate a program
to revise the Zoning Code to
ensure adequate sites are
available to accommodate the
identified sites in the Sites
Inventory.
Amend the Zoning Code to
include a Housing Element
Overlay Zone (HEOZ) to apply to
the sites included in the Site
Inventory to modify the
development standards (i.e.,
density, lot coverage, FAR,
height) on those sites.
Amend the Affordable Housing
Overlay Zone to increase the
maximum allowable density from
20 dwelling units per acre to 40
dwelling units per acre.
Clarify the text of the nonresidential zones regarding housing.
Rezone the Caltrans ROW – Site
E3 to allow residential
development.
HE-1.1 Adequate
Sites
HE-1.2 Multi-family
Housing Densities
HE-2.11 Smart
Growth
Community
Development
Department
If the Housing
Element is found
in compliance by
January 31,
2023, then
rezonings will be
completed within
3 years and 120
days. If it is not
found in
compliance,
then the
rezonings will be
completed within
1 year of
January 1, 2024.
General
Plan
Update
Fund
BG General Plan Amendment
Amend the General Plan to
establish new maximum densities
for the High Residential, Medium
Density Residential, Low Density
Residential, Mixed-Use,
Neighborhood Commercial, and
Central Business District land
use designations to provide for
the development of housing for
the sites in the Site Inventory.
See Program BF.
HE-1.1 Adequate
Sites
HE-1.2 Multi-family
Housing Densities
HE-2.11 Smart
Growth
Community
Development
Department
If the Housing
Element is found
in compliance by
January 31,
2023, then
rezonings will be
completed within
3 years and 120
days. If it is not
found in
compliance,
then the
rezonings will be
General
Plan
Update
Fund
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10-58 HCD Draft Initial Review 2023-2031 Housing Element October 2022 Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
completed within
1 year of
January 1, 2024
BH Provide Adequate Sites for
Lower Income Households on
Nonvacant and Vacant Sites
Previously Identified
Rezone the following sites to
allow development by right
pursuant to Government Code
section 65583.2(i) when 20
percent or more of the units are
affordable to lower income
households as identified in
Appendix I to accommodate the
lower income RHNA for sites that
were previously identified in past
housing elements:
Parcel: 424-08-074;
Parcel 424-08-057; and
Parcel 424-08-21.
HE-1.1 Adequate
Sites
Community
Development
Department
Sites rezoned
no more than
three years from
the beginning of
the planning
period.
General
Plan
Update
Fund
10. Housing Element
10.7 Glossary and Acronyms
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-59 A
Accessible. The ability to accommodate everyone
regardless of ability or pre-existing condition.
Accessory Dwelling Unit (ADU). An accessory
dwelling unit is a detached or attached dwelling unit.
It shall include permanent provisions for living,
sleeping, eating, cooking, and sanitation and is
generally smaller and located on the same parcel as
a proposed or exiting primary dwelling. An accessory
dwelling unit also includes efficiency units and
manufactured homes.
Acres (Gross). An acre is a measurement of land
area equal to 43,560 square feet. The gross acreage
of a lot includes all land within the boundaries of the lot (including, but not limited to, easements). The
gross acreage is defined as the total area, measured
on a horizontal plane, and is the measure used for
determination of density and intensity calculations.
Acres (Net). A reduced lot size based average lot
slope or other factors and used for the purpose of
calculating the maximum allowed floor area or
density.
Affirmative Furthering Fair Housing. Taking
meaningful actions, in addition to combating
discrimination, that overcome patterns of segregation
and foster inclusive communities free from barriers
that restrict access to opportunity based on protected
characteristics. Specifically, affirmatively furthering fair housing means taking meaningful actions that,
taken together, address significant disparities in
housing needs and in access to opportunity,
replacing segregated living patterns with truly
integrated and balanced living patterns, transforming
racially and ethnically concentrated areas of poverty
into areas of opportunity, and fostering and
maintaining compliance with civil rights and fair
housing laws. The duty to affirmatively further fair
housing extends to all of a public agency’s activities
and programs relating to housing and community
development. (Gov. Code, § 8899.50, subd. (a)(1).)”
Affordable Housing. Under State and Federal
statutes, affordable housing is housing which costs
no more than 30 percent of gross household income.
Housing costs include rent or mortgage payments,
utilities, taxes, insurance, homeowner association
fees, and other related costs.
Americans with Disabilities Act (ADA). A civil
rights law that prohibits discrimination against
individuals with disabilities in all areas of public life, including jobs, schools, transportation, and all public and private places that are open to the general
public.
Area Median Income (AMI). A key metric in
affordable housing. Area median income is defined
as the midpoint of a specific area’s income
distribution and is calculated on an annual basis by
the Department of Housing and Urban Development.
B
Below Market Program (BMP). The BMP Program
implements the Town of Los Gatos’ inclusionary
zoning ordinance, which requires that a portion of the
new residential construction in Los Gatos be
dedicated to affordable housing.
C
California Environmental Quality Act (CEQA).
State law that requires State and local agencies to
evaluate and disclose the significant environmental
impacts of discretionary actions and to avoid or
mitigate those impacts, if feasible.
Commercial. Retail, service, and entertainment
uses (e.g., shopping centers, smaller stores,
restaurants).
D
Density. Residential developments are regulated by
an allowed density range (minimum and maximum)
measured in “dwelling units per acre.” Residential
HCD Draft Initial Review 2023-2031 Housing Element
10-60 HCD Draft Initial Review 2023-2031 Housing Element October 2022 density is calculated by dividing the number of
housings units on the site (excluding accessory units)
by the gross lot area.
Development. The subdivision of land; construction
or alteration of structures, roads, utilities, and other facilities; installation of septic systems; grading
activities; depositing of refuse; disposal of any
material; dredging or mineral extraction, debris or fill materials; and the clearing of natural vegetation with
the exception of agricultural activities. This does not include routine repair and maintenance activities.
Dwelling Unit. A room or group of rooms (including
sleeping, eating, cooking, and sanitation facilities, but not more than one kitchen) that constitutes an
independent housekeeping unit, occupied or intended
for occupancy by one household on a long-term
basis.
E
Environmental Justice. The fair treatment of
people of all races, cultures, incomes, political and
religious affiliation, and national origins with respect to the development, adoption, implementation, and
enforcement of environmental laws, regulations, and
policies.
Equality. Is sameness; everyone gets the same
thing. Equality focuses on everyone getting the same
opportunity, but often ignores the realities of historic exclusion and power differentials among whites and
other racialized groups.
Equity. Ensures that outcomes in the conditions of
well-being are improved for marginalized groups,
lifting outcomes for all. Equity is a measure of justice.
F
Federal Fair Housing Act of 1968. Prohibits
discrimination concerning the sale, rental, and
financing of housing based on race, color, religion,
national origin, - and was later amended to include
familial status and disability.
Fire Hazard Severity Zone. A mapped area that
designates zones, based on factors such as fuel,
slope, and fire weather, with varying degrees of fire
hazard (e.g., moderate, high, and very high).
Floor Area Ratio (FAR). Total building size is
regulated by a maximum FAR standard. FAR means
the gross floor area of a building or buildings on a
zoning plot divided by the area of such zoning plot.
Floor area means the entire enclosed area of all
floors that extend more than four (4) feet above the
existing or proposed grade, measured from the outer
face of exterior walls or in the case of shared walls
from the centerline. The maximum FAR standard
limits the overall size of development on a property.
G
Goal. A statement that describes, in general terms, a
desired future condition or “end” state. Goals
describe ideal future conditions for a topic and tend to be very general and broad.
H
Housing Element Advisory Board. A Town
Council appointed advisory board for preparation of
the Housing Element.
I
Implementation Program. An action, activity, or
strategy to be taken by the Town to carry out an
adopted policy to achieve a specific goal or objective.
Infill Development. Development of vacant or
underutilized land (usually individual lots or leftover properties) within areas that are already largely
developed.
Intensity. Developments are regulated by an
allowed intensity, measured by a maximum FAR.
Intensity is a measure of the extent to which a land
parcel is developed in conformity with the zoning
J
K
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-61 L
Land Use Designation. A specific geographic
designation with associated land use or management
policies and regulations.
Lot Coverage. Lot coverage is the percentage of a
lot that is covered by all buildings compared to the
total area of the lot.
M
Missing Middle Housing. Missing middle housing is
a term used to describe a range of house-scale
buildings with multiple units that are compatible in
scale and form with detached single-family homes.
Common housing types include duplexes; triplexes;
fourplexes; courtyard apartments; cottage courts;
townhomes; triplex stacked (vertical); and live-work
spaces. Also referred to as “Small Multi-Unit
Housing”.
Mixed-Use Development. Development projects
where a variety of uses such as office, commercial,
institutional, and residential are combined in a single building or on a single site in an integrated project.
These developments are regulated by both the
maximum residential density (units per acre) and
maximum FAR standard that incorporates both the
residential and non-residential building floor areas.
Multi-Family Residential. Residential buildings
containing units built one on top of another and those
built side-by-side which do not have a ground-to-roof
wall and/or have common facilities (i.e., attic,
basement, heating plant, plumbing, etc.). Accessory
dwelling units (ADUs) are not considered multi-family
residential.
N
O
Objective Design Standards. Objective standards
are defined under State law as “standards that
involve no personal or subjective judgement by a
public official and are uniformly verifiable by
reference to an external or uniform benchmark or
criteria available and knowable by both the
development applicant or proponent and the public
official prior to submittal “(California Government
Code, Section 65913.4).
P
Persons With Special Needs. Includes extremely
low-income households, seniors, overcrowded and
large-family households, the homeless population,
those in need of emergency shelter, youth aging out
of foster care, female-headed or single-parent
households, and persons with disabilities, including
developmental challenges.
Planning Commission. An appointed commission
responsible for conducting public hearings on the
General Plan and Zoning Code modifications,
considering the input of the public, and making
recommendations to the Town Council on these
matters.
Planned Development. The Planned Development
(PD) overlay zone provides alternative standards for
housing developments with a minimum of 40 percent
of the units affordable to households of very low, low, or moderate income.
Policy. A statement that guides a specific course of
action for decision-makers to achieve a desired goal.
Q
R
Regional Housing Need Allocation (RHNA). A
State-mandated process to identify the total number
of housing units (by affordability level) that each
jurisdiction must accommodate in its Housing
Element.
S
Setback. The distance between a building and the
property line or other buildings.
Single-Family Residential. Land with detached
buildings with not more than one primary dwelling
HCD Draft Initial Review 2023-2031 Housing Element
10-62 HCD Draft Initial Review 2023-2031 Housing Element October 2022 unit for residential uses, such as single-family homes, townhomes, and condominiums.
Specific Plan. A planning tool authorized by
Government Code Section 65450, et seq., for the
systematic implementation of the General Plan for a
defined portion of a community’s planning area. A
specific plan must specify in detail the land uses,
public and private facilities needed to support the
land uses, phasing of development, standards for the
conservation, development, and use of natural
resources, and a program of implementation
measures, including financing measures.
Small Multi-Unit Housing. Also known as “Missing
middle housing” is a term used to describe a range of
house-scale buildings with multiple units that are
compatible in scale and form with detached singlefamily homes. Common housing types include duplexes; triplexes; fourplexes; courtyard apartments;
cottage courts; townhomes; triplex stacked (vertical);
and live-work spaces.
T
Town Council. The political body which formulates
and implements policies in Los Gatos. It is the Town
Council, through its decision-making authority, that
affirms the policy direction and priorities contained
within this General Plan. The Town Council is
ultimately responsible for adoption of the General
Plan, as well as the regulations, capital improvement
programs, and financing mechanisms that implement
the General Plan.
U
V
Vacant Land. Land that is not actively used for any
purpose, including land that is not improved with
buildings or site facilities and is sizeable in area to accommodate development.
W
Wildland/Urban Interface (WUI). Areas where
homes or other structures are built near or among
lands prone to wildland fire.
X
Y
Z
Zoning. The division of the Town into districts, and
the application of different regulations in each district.
Zoning District. A part of the community designated
by the local zoning ordinance for specific of land
uses, such as single-family residential or
neighborhood commercial uses. Only the primary
permitted land uses, their accessory uses, and any
conditional uses permitted in the zoning district may
be placed on the land in that part of the community.
Zoning Ordinance. The adopted zoning and
planning regulations of a town, city, or county that
establish development standards for each zone, such
as minimum lot size, maximum height of structures,
building setbacks, and yard size.
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-63 List of Acronyms
AB Assembly Bill
ABAG Association of Bay Area Governments
ADA Americans with Disabilities Act
ADU Accessory dwelling unit
AFFH Affirmative Furthering Fair Housing
AHOZ Affordable Housing Overlay Zone
AMI Area Median Income
BMP Below Market Program
CBD Central Business District land use
designation
CC Community Commercial land use
designation
CD Community Design Element
CEQA California Environmental Quality Act
CMU Mixed-Use land use designation
CUP Conditional Use Permit
DFEH California Department of Fair
Employment in Housing
du/ac Dwelling units per acre
EIR Environmental Impact Report
FAR Floor area ratio
FFH Federal Fair Housing Act
HCD Department of Housing and Community
Development
HDR High Density Residential land use
designation
HDS&G Hillside Development Standards and
Guidelines
HEAB Housing Element Advisory Board
HR Hillside Residential land use designation
HUD Department of Housing and Urban
Development
LDR Low Density Residential land use
designation
LHP Landmark and Historic Preservation
Zone
LI Light Industrial land use designation
LID Low Impact Development
LU Land Use Element
MDR Medium Density Residential land use
designation
MTC Metropolitan Transportation
Commission
MU Mixed-Use land use designation
NFHA National Fair Housing Alliance
NF-SP North Forty Specific Plan
PD Planned Development
PS Public School Zone
RHNA Regional Housing Needs Allocation
RHND Regional Housing Needs Determination
RHM Mobile Home Residential
SB Senate Bill
WUI Wildland/Urban Interface
.
Affirmatively Furthering Fair Housing Report A
APPENDIX
Appendix A. AFFH Report
October 2022 Appendix A A-1
A.1 What is AFFH?
The State of California’s 2018 Assembly Bill (AB 686) requires that all public agencies in the state affirmatively further fair housing (AFFH) beginning January 1, 2019. Public agencies receiving funding from the U.S.
Department of Housing and Urban Development (HUD) are also required to demonstrate their commitment to AFFH. The Federal obligation stems from the fair housing component of the Federal Civil Rights Act mandating Federal fund recipients to take “meaningful actions” to address segregation and related barriers to fair housing choice.
AB 686 requires all public agencies to “administer programs and activities relating to housing and community development in a manner that affirmatively furthers fair housing and take no action inconsistent with this obligation.”1
AB 686 also makes changes to Housing Element Law to incorporate requirements to AFFH as part of the housing element and General Plan to include an analysis of fair housing outreach and capacity, integration and segregation, access to opportunity, disparate housing needs, and current fair housing practices.
Affirmatively Furthering Fair Housing
“Affirmatively furthering fair housing” means taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics.
Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws. The duty to affirmatively further fair housing extends to all of a public agency’s activities and programs relating to housing and community development. (Gov. Code, § 8899.50, subd.(a)(1).)” Source: California Department of Housing and Community Development Guidance, 2021, page 14.
A.2 History of Segregation in the Region
The United States’ oldest cities have a history of mandating segregated living patterns and Northern California cities are no exception. ABAG, in its recent Fair Housing Equity Assessment, attributes segregation in the Bay Area to historically discriminatory practices, highlighting redlining and discriminatory mortgage approvals as well as “structural inequities” in society, and “self-segregation” (i.e., preferences to live near similar people).
Researcher Richard Rothstein’s 2017 book The Color of Law: A Forgotten History of How Our Government Segregated America chronicles how the public sector contributed to the segregation that exists today. Rothstein highlights several significant developments in the Bay Area region that played a large role in where the region’s non-White residents settled.
In 1955, builders began developing workforce housing for the Ford Corporation’s plant in the Bay Area, including Santa Clara County. Initially the units were segregated as no one would sell to the local Black/African American workers. The American Friends Service Committee (AFSC) worked to find builders who would build integrated subdivisions. Unfortunately, after four purchased plots were subsequently rezoned to prevent integrated housing, 1 California Department of Housing and Community Development Guidance, 2021, page 9.
HCD Draft Initial Review 2023-2031 Housing Element
A-2 Appendix A October 2022
the original builder quit. After multiple additional iterations, Black/African American workers had “become so discouraged about finding housing opportunities” that they began carpooling from outside cities such as Richmond2.
A 2018 Berkeley publication titled, Racial Segregation in the San Francisco Bay Area, describes Los Gatos among the “most segregated, heavily white cities in the county” with Santa Clara County containing “no truly integrated city”3. The study also delved into the history of segregation, highlighting 1960s-era laws and practices connected to urban renewal projects that displaced established communities of color. This was coupled with the building of transportation infrastructure that resulted in a net loss of affordable housing due to a lack of one-forone replacement. Figure A-1 through Figure A-7 illustrates the demographic distribution within the Santa Clara County.
2 Source: book The Color of Law: A Forgotten History of How Our Government Segregated America by Richard Rothstein, p 121. 3 Racial Segregation in the San Francisco Bay Area, Part 1 | Othering & Belonging Institute (berkeley.edu)
Appendix A. AFFH Report
October 2022 Appendix A A-3
Figure A-1 Percent Non-White Population by Census Block Groups, 2018 Source: California Department of Housing and Community Development AFFH Data Viewer
HCD Draft Initial Review 2023-2031 Housing Element
A-4 Appendix A October 2022
Figure A-2 White Majority Census Tracts
Source: California Department of Housing and Community Development AFFH Data Viewer
Appendix A. AFFH Report
October 2022 Appendix A A-5
Figure A-3 Asian Majority Census Tracts
Source: California Department of Housing and Community Development AFFH Data Viewer
HCD Draft Initial Review 2023-2031 Housing Element
A-6 Appendix A October 2022
Figure A-4 Hispanic Majority Census Tracts
Source: California Department of Housing and Community Development AFFH Data Viewer
Appendix A. AFFH Report
October 2022 Appendix A A-7
Figure A-5 Neighborhood Segregation by Census Tract, 2019 Source: California Department of Housing and Community Development AFFH Data Viewer
HCD Draft Initial Review 2023-2031 Housing Element
A-8 Appendix A October 2022
Figure A-6 Diversity Index by Block Group, 2010
Source: California Department of Housing and Community Development AFFH Data Viewer
Appendix A. AFFH Report
October 2022 Appendix A A-9
Figure A-7 Diversity Index by Block Group, 2018
Source: California Department of Housing and Community Development AFFH Data Viewer
HCD Draft Initial Review 2023-2031 Housing Element
A-10 Appendix A October 2022
History of Segregation in the Region
This history of segregation in the region is important not only to understand how residential settlement patterns came about—but, more importantly, to explain differences in housing opportunity among residents today. In sum, not all residents had the ability to build housing wealth or achieve economic opportunity. This historically unequal playing field in part determines why residents have different housing needs today.
In addition to historical discriminatory practices that embedded segregation into living patterns throughout the Bay Area, it’s also necessary to recognize the historical impacts of colonization and genocide on Indigenous populations and how the effects of those atrocities are still being felt today. The original inhabitants of presentday San Mateo County are the Ramaytush Ohlone, who have “…lived on the San Francisco Peninsula for thousands of years and continue to live here as respectful stewards of the land”4. However, “[d]ue to the devastating policies and practices of a succession of explorers, missionaries, settlers, and various levels of government over the centuries since European expansion, the Ramaytush Ohlone lost the vast majority of their population as well as their land”5. The lasting influence of these policies and practices have contributed directly to the disparate housing and economic outcomes collectively experienced by Native populations today6.
The timeline of major Federal Acts and court decisions related to fair housing choice and zoning and land use appears on the following page.
As shown in the timeline, exclusive zoning practices were common in the early 1900s. Courts struck down only the most discriminatory and allowed those that would be considered today to have a “disparate impact” on classes protected by the Fair Housing Act. For example, the 1926 case Village of Euclid v. Amber Realty Co. (272 U.S. 365) supported the segregation of residential, business, and industrial uses, justifying separation by characterizing apartment buildings as “mere parasite(s)” with the potential to “utterly destroy” the character and desirability of neighborhoods. At that time, multifamily apartments were the only housing options for people of color, including immigrants.
The Federal Fair Housing Act was not enacted until nearly 60 years after the first racial Zoning Ordinances appeared in U.S. cities. This coincided with a shift away from Federal control over low-income housing toward locally-tailored approaches (block grants) and market-oriented choice (Section 8 subsidies), the latter of which is only effective when adequate affordable rental units are available. 4 https://www.smcoe.org/for-communities/indigenous-people-of-san-mateo-county.html 5 https://www.smcoe.org/for-communities/indigenous-people-of-san-mateo-county.html 6 https://www.americanprogress.org/article/systemic-inequality-displacement-exclusion-segregation/
Appendix A. AFFH Report
October 2022 Appendix A A-11
Major Public and Legal Actions that Influence Fair Access to Housing A.3 Report Content and Organization
This Fair Housing Assessment follows the April 2021 State of California State Guidance for AFFH.
Section I. Fair Housing Enforcement and Outreach Capacity reviews lawsuits/enforcement actions/complaints against the jurisdiction; compliance with State fair housing laws and regulations; and jurisdictional capacity to conduct fair housing outreach and education.
Section II. Integration and Segregation identifies areas of concentrated segregation, degrees of segregation, and the groups that experience the highest levels of segregation Section III. Access to Opportunity examines differences in access to education, economic development, and healthy environments.
Section IV. Disparate Housing Needs identifies which groups have disproportionate housing needs including displacement risk.
Section V. Contributing Factors and Fair Housing Action Plan identifies the primary factors contributing to fair housing challenges and the Plan for taking meaningful actions to improve access to housing and economic opportunity.
Appendices
▪ Map and Data packet, including Fair Housing Organizations in Santa Clara County—mission, services, and contact information
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A-12 Appendix A October 2022
▪ State Fair Housing Laws and Regulations—summary of key State laws and regulations related to mitigating housing discrimination and expanding housing choice A.4 Primary Findings
This section summarizes the primary findings from the Fair Housing Assessment for Los Gatos including the following sections: fair housing enforcement and outreach capacity, integration and segregation, access to opportunity, disparate housing needs, and contributing factors and the Town’s Fair Housing Action Plan. ▪ Population growth trends in Los Gatos are significantly lower than the county and regional index rates.
The Town has grown 15 percent since 1990, while Santa Clara County grew by 31 percent. ▪ Los Gatos diverges from the county and region overall in racial composition with more than double the county share of non-Hispanic White population (72 percent versus 32 percent for Santa Clara County).
Yet Los Gatos’ residents have grown more racially diverse since 2000 with the non-Hispanic white population declining by 14 percentage points and Asian residents increasing in population from eight percent to 15 percent in 2019.
▪ Conversely, the types of households in Los Gatos mirror the county and are similar to the Bay Area with 58 percent married couples (57 percent in Santa Clara County and 51 percent in the Bay Area). Household size is in line with the county, except for five or more person households, for which Los Gatos has a smaller share.
▪ Los Gatos has a higher share of high-income earners (greater than 100 percent AMI) than the county and Bay Area (65 percent versus 55 percent and 52 percent respectively). Accounting for race and ethnicity, Asian households are much more likely to comprise high income earners (72 percent), especially when compared to Black/African American and Hispanic households (50 percent and 46 percent, respectively). ▪ In 2015, the income segregation in Los Gatos between lower-income residents and other residents was higher than the average value for Bay Area jurisdictions. Segregation also exists among racial groups, yet is slowly declining.
▪ Poverty rates are minimal but do vary across races and ethnicities with Hispanic residents experiencing the highest poverty rate (although still a very low six percent) and Black/African Americans the lowest (0.7 percent).
▪ The job to household ratio for Los Gatos tracks closely with Bay Area and is lower than Santa Clara County’s, indicating that Los Gatos is less of a commuter Town than surrounding jurisdictions with much higher job to household ratios. This differs, however, by wage, with jobs to household ratios much higher for low wage workers who cannot afford to live in the Town. Los Gatos has twice as many jobs as households for low wage jobs.
▪ Los Gatos’ housing opportunities are limited by pricing, and both rental and home values are higher than the county median. Eighty-three percent of houses are valued at more than one million dollars; Zillow reports Los Gatos’ market average value at more than three million dollars. The average value of homes in Los Gatos is 63 percent higher than the County’s 1.3-million-dollar average value. Sixty-three percent of rentals charge 2,000 dollars or more a month, compared to 56 percent in Santa Clara County. Los Gatos does not have any public housing and only a small portion of the Town contains any Housing Choice Voucher usage, a minimal 0-5 percent.
▪ Nearly three-quarters of the Town’s housing are single-family units.
Appendix A. AFFH Report
October 2022 Appendix A A-13
▪ Housing cost burden in Los Gatos is lower than nearby cities but differs by race and ethnicity—and by tenure (renters/owners). Asian households experience the lowest rates of cost burden (30 percent) in the Town, followed by non-Hispanic White households (31 percent). This is followed by Black/African American household (34 percent) and Hispanic households (37 percent). Other/Multiple Race households (45 percent) are the most likely to be cost burdened (45 percent). Owners experience cost burden at a lower rate (28 percent) than renters (42 percent).
▪ Mortgage denial rates vary little by race and ethnicity, with 55 percent to 65 percent of loans originated.
Other than Asian applicants, however, applications from non-White applicants are very low in numbers. ▪ Saratoga Elementary School, Los Gatos Union Elementary School, and Los Gatos-Saratoga Union High School Districts serve the majority of Los Gatos residents. The most up-to-date performance rankings show that the Los Gatos-Saratoga high school with very few Black/African American or Native American students. Asian students experienced higher educational outcomes compared to other students, scoring
93.8 percent in a 2019 College/Career Indicator metric. White and Hispanic students scored 71 percent and 64.6 percent, respectively.
A.5 Contributing Factors and Fair Housing Issues
The disparities in housing choice and access to opportunity discussed above stem from historical actions in the broader region, socioeconomic factors that have limited employment and income growth among non-White and Hispanic residents, and a shortage of housing units built to accommodate growth.
Fair Housing Issue
Los Gatos’ very low production of affordable and market rate housing limits housing choices of all but the highest income households.
Contributing factors:
▪ Since 2010, Los Gatos added 2,000 residents while only building 342 housing units. This lack of production has exacerbated an already tight housing market. ▪ The housing that was added in Los Gatos between 2015 and 2019 was largely priced for above moderateincome households. Only 1.5 percent of housing permits approved were for low- or very- low-income housing.
Fair Housing Issue
Los Gatos’ lack of affordable housing has a disproportionate impact on low- and moderate-income households who are more likely to be households of color. As such, Los Gatos lacks racial and ethnic diversity relative to the county overall.
Contributing factors:
▪ Black or African American and Hispanic residents typically work lower wage jobs, stemming from historical employment discrimination and lack of access to quality educational environments. These jobs do not support the Town’s very high housing costs.
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▪ Low wage jobs are necessary to support higher wage industries. Los Gatos’ employment growth has not been adequately supported by affordable housing development. As such, there are twice as many low wage jobs as residents in Los Gatos who work those jobs.
Fair Housing Issue
Los Gatos’ households are segregated by income, and income segregation is higher in the Town than in other Bay Area jurisdictions.
Contributing factors:
▪ Lack of affordable housing overall.
▪ Segregation of the limited affordable housing that does exist into the north central portion of the Town.
Fair Housing Issue
Los Gatos feeds to high performing schools, yet, except for Asian students, students of color cannot take advantage of these learning opportunities because they cannot afford to live in Los Gatos.
Contributing factors:
▪ Lack of affordable housing overall.
A.6 Fair Housing Enforcement and Outreach Capacity
This section discusses fair housing legal cases and inquiries, fair housing protections and enforcement, and outreach capacity.
Fair housing legal cases and inquiries. California fair housing law extends beyond the protections in the Federal Fair Housing Act (FHA). In addition to FHA protected classes—race, color, ancestry/national origin, religion, disability, sex, and familial status—California law offers protections for age, sexual orientation, gender identity or expression, genetic information, marital status, military or veteran status, and source of income (including Federal housing assistance vouchers).
The California Department of Fair Employment in Housing (DFEH) was established in 1980 and is now the largest civil rights agency in the United States. According to their website, DFEH’s mission is, “to protect the people of California from unlawful discrimination in employment, housing and public accommodations (businesses) and from hate violence and human trafficking in accordance with the Fair Employment and Housing Act (FEHA), Unruh Civil Rights Act, Disabled Persons Act, and Ralph Civil Rights Act” 7 .
DFEH receives, evaluates, and investigates fair housing complaints. DFEH plays a particularly significant role in investigating fair housing complaints against protected classes that are not included in Federal legislation and, therefore, not investigated by HUD. DFEH’s website provides detailed instructions for filing a complaint, the 7 https://www.dfeh.ca.gov/aboutdfeh/
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October 2022 Appendix A A-15
complaint process, appealing a decision, and other frequently asked questions8. Fair housing complaints can also be submitted to HUD for investigation.
Additionally, Santa Clara County has a number of local resource and enforcement organizations:
▪ Project Sentinel: Assists with housing discrimination, mortgage foreclosures, rental issues, and more. ▪ Housing and Economic Rights Advocates (HERA) provides legal and advocacy for vulnerable Californians facing discrimination and economic abuses.
▪ Bay Area Legal Aid engages in broad advocacy focused on helping low-income Bay Area residents lead stable lives, including housing stability.
▪ The Law Foundation of Silicon Valley provides legal advocacy for social change with a focus on finding stable homes for low-income residents.
▪ Senior Adults Legal Assistance is a law office dedicated to supporting elder residents obtain independent living.
From 2013 to 2021, 391 fair housing complaints in Santa Clara County were filed with the U.S. Department of Housing and Urban Development (HUD) or Fair Housing Advocates of Northern California (FHANC). Most of the county’s valid complaints cited disability status as the bias. Of these complaints, 69 percent were considered valid and proceeded to actionable responses. Los Gatos had eight total complaints.
Nationally, the National Fair Housing Alliance (NFHA) reported a “negligible” decrease in the number of complaints filed between 2019 and 2020. The primary bases for complaints nationally of disability (55 percent) were represented in Santa Clara County at a much lower rate (16 percent). Familial status represented eight percent of complaints nationally, similar to the six percent of cases in the county. Figure A-8 and Figure A-9 show the share of population by disability status within Santa Clara County and the distribution by census tract, respectively.
NFHA identifies three significant trends in 2020 that are relevant for this AFFH:
▪ First, fair lending cases referred to the Department of Justice from Federal banking regulators has been declining, indicating that State and local government entities may want to play a larger role in examining fair lending barriers to homeownership.
8 https://www.dfeh.ca.gov/complaintprocess/
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Figure A-8 Share of Population by Disability Status, 2019 Source: ABAG Housing Needs Data Workbook
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October 2022 Appendix A A-17
Figure A-9 Percent of Population with a Disability by Census Tract, 2019 Source: California Department of Housing and Community Development AFFH Data Viewer
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▪ Second, NFHA identified a significant increase in the number of complaints of harassment - 1,071 complaints in 2020 compared to 761 in 2019.
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October 2022 Appendix A A-19
▪ Finally, NFHA found that 73 percent of all fair housing complaints in 2020 were processed by private fair housing organizations, rather than State, local, and Federal government agencies—reinforcing the need for local, active fair housing organizations and increased funding for such organizations9.
Outreach and capacity. Santa Clara County, including Los Gatos, has a number of organizations dedicated to assisting residents with legal services related to housing discrimination and general housing disputes. These organizations are listed in Figure I-1 of the map and data appendix.
The Town also maintains a resource guide that highlights service providers across multiple categories focused on housing and quality of life for underserved members of the community10. Additionally, the Town provides links and email addresses for citizens to participate in the ongoing Housing Element Update process, including links to the agendas and staff reports for the Housing Element Advisory Board (HEAB) meetings.
Finally, the Town has a strong statement about inclusivity and directly addresses hate speech on its website11.
Compliance with State law. Los Gatos is compliant with the following State laws that promote fair and affordable housing. The Town has not been alleged or found in violation of the following:
▪ Housing Accountability Act (Gov. Code. Section 65589.5) requiring adoption of a Housing Element and compliance with RHNA allocations;
▪ No Net Loss Law (Gov. Code Section 65863) requiring that adequate sites be maintained to accommodate unmet RHNA allocations;
▪ Least Cost Zoning Law (Gov. Code. Section 65913.1);
▪ Excessive Subdivision Standards Law (Gov. Code. Section 65913.2); ▪ Limits on Growth Controls Law (Gov. Code. Section 65589.5).
Housing specific policies enacted locally.
▪ Los Gatos offers a density bonus program to comply with State law. ▪ It also has an affordable housing overlay zone; however, that zone applies to one property only. ▪ The Town allows relative diverse type of housing in residential zones. However, minimum lot area for duplexes is quite generous (8,000 square feet). The Town could add flexibility for affordable duplexes— particularly in areas near and within downtown.
▪ The Town requires that development of Accessory Dwelling Units under Town incentive programs be affordable, and deed restricted to 80 percent AMI households. ▪ The Town’s Below Market Price program requirements apply to developments of five units and more and require between 10 percent and 20 percent of units to be affordable to low- and moderate-income households. In-lieu fees are only allowed in limited circumstances, which prioritizes unit development. 9 https://nationalfairhousing.org/2021/07/29/annual-fair-housing-report-shows-increase-in-housing-harassment/ 10 Los-Gatos-Housing-Resources-Guide (losgatosca.gov)
11 https://www.losgatosca.gov/2604/Becoming-an-Inclusive-Community
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Publicly-Assisted Housing. According to the California Department of Housing and Community Development AFFH Data Viewer (HCD data viewer), Los Gatos does not have any public housing buildings. Additionally, only a small portion of Los Gatos contains any Housing Choice Voucher usage, a minimal zero to five percent.
A.7 Integration and Segregation
This section discusses integration and segregation of the population by protected classes including race and ethnicity, disability status, familial status, and income status. The section concludes with an analysis of racially and ethnically concentrated areas of poverty and affluence.
Integration and Segregation
“Integration generally means a condition in which there is not a high concentration of persons of a particular race, color, religion, sex, familial status, national origin, or having a disability or a particular type of disability when compared to a broader geographic area.
Segregation generally means a condition in which there is a high concentration of persons of a particular race, color, religion, sex, familial status, national origin, or having a disability or a type of disability in a particular geographic area when compared to a broader geographic area.” Race and ethnicity. Los Gatos differs from the county and Bay Area overall for its relatively high proportion of residents identifying as non-Hispanic White (72 percent in Los Gatos compared to 32 percent in Santa Clara County) and small Hispanic population (eight percent in Los Gatos and 25 percent in the county). ▪ Los Gatos’ proportion of Black/African American and Other and mixed-race residents is less proportional to the County and the Bay Area overall (Figure A-10).
▪ Los Gatos’ residents have grown more racially diverse since 2000 largely due to growth in Asian and Hispanic residents (Figure B-4).
▪ Older residents are less racially diverse than other age groups, with 87 percent of the population older than 65 years identifying as White compared to 77 percent of those aged 18 to 24 and 75 percent of children less than 18 years old. The main shift is the inclusion of more diverse populations in younger age groups, especially among Asian/API and Other/Multiple race residents (Figure B-3). ▪ Poverty rates are very low for all residents including residents of color. Black/African American have the lowest poverty rate at less than 1 percent. The highest poverty rate was 6.1 percent among Hispanic residents (Figure B-13).
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October 2022 Appendix A A-21
Figure A-10 Population by Race
Source: ABAG Housing Needs Data Workbook
15%
37%
27%
6%
72% 32% 39%
4%
4% 5%
8%
25% 24%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Los Gatos Santa Clara County Bay Area
Percent of Population
Hispanic or Latinx
Other Race or Multiple Races, Non-Hispanic
White, Non-Hispanic
Black or African American, Non-Hispanic
Asian / API, Non-Hispanic
American Indian or Alaska Native, Non-Hispanic
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A-22 Appendix A October 2022
Geospatially, almost all census tracts in Los Gatos have a predominantly White population (Figure A-2 above).
Compared with neighboring Monte Sereno, Los Gatos has a more varied neighborhood composition map and a more even dispersion of residents of varied races and ethnicities, see Figure A-5 above. Overall, the Town has low to moderate diversity (Figure A-6 and Figure A-7 above). The Town’s diversity index has improved since 2010 due to changes in racial and ethnic diversity in the northern and eastern portions of Town.
The Association of Bay Area Governments (ABAG), working with UC Merced, created a 2021 report on segregation in Los Gatos that measured racial and income segregation within the community. This report, in its entirety can be found in Appendix G. That report utilized several common measures of segregation:
▪ The Dissimilarity Index, or DI, is a common tool that measures segregation in a community. DI is an index that measures the degree to which two distinct groups are evenly distributed across a geographic area. DI represents the percentage of a group’s population that would have to move for each area in the county to have the same percentage of that group as the county overall. DI values range from zero to 100—where zero is perfect integration and 100 is complete segregation. Dissimilarity index values between zero and 39 generally indicate low segregation, values between 40 and 54 generally indicate moderate segregation, and values between 55 and 100 generally indicate a high level of segregation. ▪ The isolation index is interpreted as the probability that a randomly drawn minority resident shares an area with a member of the same minority, it ranges from zero to 100 and higher values of isolation tend to indicate higher levels of segregation.
ABAG’s assessed measures of segregation above highlighted White residents as the most segregated in Los Gatos. White residents are more likely than any other racial group to live in a neighborhood where they are unlikely to come into contact with other racial groups. However, White residents are becoming less isolated over time—and segregation in Los Gatos is decreasing.
Segregation by income increased between 2010 and 2015. In 2015, the income segregation in Los Gatos between lower-income residents and other residents was higher than the average value for Bay Area jurisdictions.
Disability status. The share of the population living with at least one disability is nine percent in Los Gatos compared to eight percent in Santa Clara County. Roughly a third of census tracts in Los Gatos contain 10 percent to 20 percent of persons with a disability, higher than most of the surrounding jurisdictions (Figure A-9 above).
Familial status. Familial status can indicate specific housing needs and preferences. A larger number of nonfamily or single person households indicates a higher share of seniors living alone, young adults living alone or with roommates, and unmarried partners. Higher shares of nonfamily households indicate an increased need for one- and two-bedroom units.
Los Gatos’ households are as likely to be three to four person households (34 percent) as two person households (35 percent). Compared to the county and Bay Area overall, Los Gatos mirrors the share of one person households (26 percent compared to 20 percent in the county and 25 percent for the Bay Area). Married couple households were the majority household type (58 percent) and 31 percent of all households have at least one child under the age of 18. The share of single persons and female-headed households mirror the makeup in the Bay Area.
The Town has no concentrations of adults living alone, suggesting that access to in-home services and care for single, older adults is less critical for Los Gatos than some surrounding communities within the county. However, the Town’s age distribution has shifted upwards since 2000 (Figure B-2) and these accommodations may grow in demand if older adults, 55 and older, in Los Gatos age in place.
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October 2022 Appendix A A-23
Los Gatos’ married couples overwhelmingly own housing: seventy-seven percent of married couple families in the Town own their homes.
Renters are more likely to occupy studios and one- and two-bedroom units than owners (Figure B-36), and owners are more likely to be occupying three to four- and 5 or more-bedroom units. Owners and renters are equally as likely to live alone.
Household income. Los Gatos’ households are higher-income than the county and Bay Area overall: 65 percent of Los Gatos households earn more than 100 percent of the AMI, compared to 55 percent for the county and 52 percent for the Bay Area (Figure B-11, and infographic below).
Every block group in Los Gatos with available data has a median household income of $125,000 or more. In the Town, Hispanic or Latinx and Other Race or Multiple Races (Hispanic and Non-Hispanic) residents experience the highest rates of poverty, followed by White (Hispanic and Non-Hispanic) residents (Figure B-13).
Racially or ethnically concentrated areas of poverty and affluence. Racially Concentrated Area of Poverty or an Ethnically Concentrated Area of Poverty (R/ECAP) and Racially Concentrated Areas of Affluence (RCAAs) represent opposing ends of the segregation spectrum from racially or ethnically segregated areas with high Segregation and Integration Population by Protected Class
City of Los Gatos Santa Clara County
Race and Ethnicity
American Indian or Alaska Native, NH 0% 0%
Asian / API, NH 15% 37%
Black or African American, NH 1% 2%
White, Non-Hispanic (NH) 72% 32%
Other Race or Multiple Races, NH 4% 4%
Hispanic or Latinx 8% 25%
Disability Status
With a disability 9% 8%
Without a disability 91% 92%
Familial Status
Female-Headed Family Households 8% 10%
Male-headed Family Households 3% 5%
Married-couple Family Households 58% 57%
Other Non-Family Households 5% 8%
Single-person Households 26% 20%
Household Income
0%-30% of AMI 9% 14%
31%-50% of AMI 8% 11%
51%-80% of AMI 9% 11%
81%-100% of AMI 9% 9%
Greater than 100% of AMI 65% 55%
0%
15%
1%
72%
4%
8%
0%
37%
2%
32%
4%
25%
9%
91%
8%
92%
8%
3%
58%
5%
26%
10%
5%
57%
8%
20%
9%
8%
9%
9%
65%
14%
11%
11%
9%
55%
Town
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A-24 Appendix A October 2022
poverty rates to affluent predominantly White neighborhoods. Historically, HUD has paid particular attention to R/ECAPs as a focus of policy and obligations to AFFH. Recent research out of the University of Minnesota Humphrey School of Public Affairs argues for the inclusion of RCAAs to acknowledge current and past policies that created and perpetuate these areas of high opportunity and exclusion12.
It is important to note that R/ECAPs and RCAAs are not areas of focus because of racial and ethnic concentrations alone. This study recognizes that racial and ethnic clusters can be a part of fair housing choice if they occur in a non-discriminatory market. Rather, R/ECAPs are meant to identify areas where residents may have historically faced discrimination and continue to be challenged by limited economic opportunity, and conversely, RCAAs are meant to identify areas of particular advantage and exclusion.
R/ECAPs
HCD and HUD’s definition of a Racially/Ethnically Concentrated Area of Poverty is:
▪ A census tract that has a non-White population of 50 percent or more (majority-minority) or, for non-urban areas, 20 percent, AND a poverty rate of 40 percent or more; OR ▪ A census tract that has a non-white population of 50 percent or more (majority-minority) AND the poverty rate is three times the average tract poverty rate for the County, whichever is lower.
Source: California Department of Housing and Community Development Guidance, 2021.
For this study, the poverty threshold used to qualify a tract as an R/ECAP was three times the average census tract poverty rate countywide, or 22.5 percent.
There are no census tracts in Los Gatos that qualify as R/ECAPs. R/ECAPs in the county are all located in San Jose.
RCAAs. At the time this report was written, HCD and HUD had not established standard definitions for Racially or Ethnically Concentrated Areas of Affluence (RCAAs). However, these are generally understood to be neighborhoods in which there are both high concentrations of non-Hispanic White households and high household income rates. Comparing Los Gatos to the surrounding county and region, it is safe to speculate that the Town has more RCAAs as other communities, the county, and the region.
A.8 Access to Opportunity
This section discusses disparities in access to opportunity among protected classes including access to quality education, employment, and environment.
Access to Opportunity
“Access to opportunity is a concept to approximate place-based characteristics linked to critical life outcomes. Access to opportunity oftentimes means both improving the quality of life for residents of low-income communities, as well as supporting mobility and access to ‘high resource’ 12 Goetz, E. G., Damiano, A., & Williams, R. A. (2019). Racially Concentrated Areas of Affluence: A Preliminary Investigation. Cityscape: A Journal of Policy Development and Research, 21(1), 99–124
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October 2022 Appendix A A-25
neighborhoods. This encompasses education, employment, economic development, safe and decent housing, low rates of violent crime, transportation, and other opportunities, including recreation, food and healthy environment (air, water, safe neighborhood, safety from environmental hazards, social services, and cultural institutions).” Source: California Department of Housing and Community Development Guidance, 2021, page 34.
The California Tax Credit Allocation Committee (TCAC) in collaboration with HCD developed a series of opportunity maps that help to identify areas of the community with good or poor access to opportunity for residents. These maps were developed to align funding allocations with the goal of improving outcomes for lowincome residents—particularly children.
The opportunity maps highlight areas of highest resource, high resource, moderate resource, moderate resource (rapidly changing), low resource and high segregation and poverty. TCAC provides opportunity maps for access to opportunity in quality education, employment, transportation, and environment. Opportunity scores are presented on a scale from zero to one and the higher the number, the more positive the outcomes.
TCAC’s economic opportunity score comprises poverty, adult educational attainment, employment, job proximity, and median home value for Los Gatos and is shown in Figure A-11.
Figure A-11 Population Living in High Resource Areas by Race Source: ABAG Housing Needs Data Workbook, California Tax Credit Allocation Committee (TCAC)/California Housing and Community Development (HCD), Opportunity Maps (2020); U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B03002 16%
70%
9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Low Resource or High
Segregation and Poverty
Area
Moderate Resource Area High/Highest Resource
Area
Percent of Population
Hispanic or Latinx
Other Race or Multiple Races, Non-Hispanic
White, Non-Hispanic
Black or African American, Non-Hispanic
Asian / API, Non-Hispanic
American Indian or Alaska Native, Non-Hispanic
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Education. TCAC’s education score is based on math proficiency, reading proficiency, high school graduation rates, and the student poverty rate. According to TCAC’s educational opportunity map, every census tract in Los Gatos scores higher than 0.75—indicating the highest positive educational outcomes. Opportunity scores are presented on a scale from zero to one and the higher the number, the more positive the outcomes.
Los Gatos is served by the Los Gatos-Saratoga Union High School District, the Los Gatos Union Elementary School, the Saratoga Elementary School Districts, Loma Prieta Joint Union Elementary, and Lakeside Joint School District. The most complete data, due to halted data collection during the COVID pandemic, was from 2019 and highlights a 97.7 percent graduation rate among all students in the Los Gatos-Saratoga Union high school, a small increase over 2018 (97.1 percent). When broken down by race/ethnicity, Asian students graduated at a slightly higher rate of 98 percent, while Hispanic and White students graduated at 95 percent and
96.5 percent respectively. There were not enough African American students enrolled to provide accurate data (less than 11 total). The lowest graduation rate was among students with a disability, yet still relatively high at 88 percent.
The Los Gatos Union Elementary served 2,710 students in 2021, down from 3,024 from 2019, the last year with complete data. White students accounted for 64 percent of the student body, with Asian (19 percent) and Hispanic students (9 percent) accounting for the majority of the remainder. The school included four percent socioeconomically disadvantaged students, one homeless student, and seven percent students with a disability.
Saratoga Elementary had 1,657 students in 2021 and 1,765 in 2019. At Saratoga, 57 percent of students are Asian and White students accounted for 26 percent and Hispanic students another six percent. Saratoga Elementary served a student population with 11 percent disabilities, two percent socioeconomically disadvantaged, and no homeless students.
Employment. The job to household ratio for Los Gatos tracks with the Bay Area and is lower than Santa Clara County’s (Figure B-8), indicating that Los Gatos is less of a commuter city than surrounding jurisdictions with much higher job to household ratios. This differs, however, by wage (Figure B-7), with jobs to household ratios much higher for low wage workers who cannot afford to live in the Town. Los Gatos has twice as many jobs as workers for low wage jobs.
▪ Notably, Los Gatos had 19,843 jobs (Figure B-5) in 2018 compared to 14,573 job holders (Figure III-3), indicating a healthy job market for local residents and a need for in-commuting to fill the unoccupied jobs. ▪ Most jobs in Los Gatos are in Financial and Professional Services and Health and Educational Services (Figure B-9).
▪ Unemployment in Los Gatos is five percent, below the county and area averages (Figure B-10).
HUD’s job proximity index shows that Los Gatos offers a moderate to high proximity to jobs. On a scale from zero to 100, where 100 is the closest proximity to jobs, the areas near Highway 17 score within the high proximity range, while most of the remaining parts of the Town scores as moderate proximity. The further away from Highway 17, the lower the proximity to jobs.
Environment. TCAC’s opportunity areas environmental scores are based on the CalEnviroScreen four indicators, which identify areas disproportionately vulnerable to pollution sources such as ozone, PM2.5, diesel PM, pesticides, toxic release, traffic, cleanup sites, groundwater threats, hazardous waste, impaired water bodies, and solid waste sites.
Three-quarters of Los Gatos scores low on positive environmental outcomes, with no census tracts in the Town scoring over 0.5 out of one (Figure A-12). Los Gatos almost uniformly had the lowest possible scores according to the CalEnviroScreen metric for 2021.
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October 2022 Appendix A A-27
Figure A-12 CalEnviroScreen 4.0, Los Gatos
Source: California Office and Environmental Health Hazard Assessment, CalEnviroScreen Maps and Data.
The Town scores high on California Healthy Places Index (HPI) developed by the Public Health Alliance of Southern California (PHASC) (Figure A-13). HPI includes 25 community characteristics in eight categories including economic, social, education, transportation, neighborhood, housing, clean environment, and healthcare13.
13 https://healthyplacesindex.org/about/
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Figure A-13 California Healthy Places Index, Los Gatos
Source: Public Health Alliance of Southern California, California Healthy Places Index.
Disparities in access to opportunity. All residents live in highly resourced areas, regardless of race or ethnicity (Figure A-11). Los Gatos and other surrounding areas are entirely high opportunity jurisdictions.
The Social Vulnerability Index (SVI) provided by the Center for Disease Control (CDC)—ranks census tracts based on their ability to respond to a disaster—includes four themes of socioeconomic status, household composition, race or ethnicity, and housing and transportation. Los Gatos scores well on the SVI; with no neighborhoods ill equipped to respond to disasters.
Los Gatos does not have any disadvantaged communities as defined under SB 535 as, “the top 25 percent scoring areas from CalEnviroScreen along with other areas with high amounts of pollution and low populations”14.
Disparities specific to the population living with a disability. Nine percent of the population in Los Gatos is living with at least one disability, compared to eight percent in the county. The most common disabilities in Los Gatos are ambulatory (4.8 percent), independent living difficulty (4.3 percent), and hearing difficulty (3.6 percent). For the population 65 and over, the share of the population with ambulatory difficulties increases to 18.4 percent, independent living difficulty increase to 15.2 percent, and hearing difficulty was 13.8 percent. 15 percent of residents with a disability were unemployed in 2019, while only four percent unemployment for residents without a disability.
14 https://oehha.ca.gov/calenviroscreen/sb535
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October 2022 Appendix A A-29
Disability
“Disability types include hearing difficulty, vision difficulty, cognitive difficulty, ambulatory difficulty, self-care difficulty, and independent living difficulty.” Source: California Department of Housing and Community Development Guidance, 2021, page 36.
Access to Opportunity
Regional Access
City of Los Gatos Santa Clara County
Jobs to Household Ratio 1.59 1.71
Unemployment Rate 5% 6%
LEP Population 2% 9%
Share of Population by Race in Resource Areas in the City of Los Gatos Employment by Disability Status
For those in the labor
0%
16% 1% 70% 4% 9%
Moderate Resource Area
High/Highest Resource Area
American Indian or Alaska Native, NH Asian / API, NH
Black or African American, NH White, Non-Hispanic (NH)
Other Race or Multiple Races, NH Hispanic or Latinx
96%
85%
4%
15%
No Disability
With A Disability
City of Los Gatos
96%
90%
4%
10%
No Disability
With A Disability
Employed Unemployed
Santa Clara County
Town
Town of Los Gatos
Town
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A.9 Disproportionate Housing Needs
This section discusses disparate housing needs for protected classes including cost burden and severe cost burden, overcrowding, substandard housing conditions, homelessness, displacement, and other considerations.
Disproportionate Housing Needs
“Disproportionate housing needs generally refers to a condition in which there are significant disparities in the proportion of members of a protected class experiencing a category of housing need when compared to the proportion of members of any other relevant groups, or the total population experiencing that category of housing need in the applicable geographic area. For purposes of this definition, categories of housing need are based on such factors as cost burden and severe cost burden, overcrowding, homelessness, and substandard housing conditions.” Source: California Department of Housing and Community Development Guidance, 2021, page 39.
Housing Needs. Since 2015, the housing that has received permits to accommodate growth has almost exclusively been priced for the higher incomes, with only two units permitted for low-income households and none for very low-income households.
▪ The vast majority of the Town’s homes were built between 1940 and 1979 (69 percent). After this period, housing production slowed, with only three percent of units built since 2010. ▪ Los Gatos housing is becoming more limited by type with 76 percent single-family units, up from 71 percent in 2010. Multifamily housing, with five or more units, made up the second highest category of units (18 percent); there were sixty-four mobile/manufactured homes in Los Gatos15. ▪ Eighty-four percent of owner-occupied homes in Los Gatos are valued over one million dollars with another 39 percent valued above two million dollars. This compares to 48 percent for the county and 35 percent for the Bay Area overall (Figure B-23). According to the Zillow Home Value Index, home values in Los Gatos are 63 percent higher than home values for the county and almost double the cost of housing in the Bay Area (Figure B-24).
▪ Rents in Los Gatos are most likely to be at least $2,000 per month (63 percent); 24 percent rent for $3,000 per month. While the Town’s rental costs higher than in the county, the trend of increasing rental costs matches the changes in the county and Bay Area overall.
Cost burden and severe cost burden. Despite Los Gatos’ comparably high housing costs, cost burden—which occurs when households spend more than 30 percent of their gross income on housing costs—is slightly better than the county and Bay Area (Figure A-15). This is indicative of a market with high barriers to entry. The lack of publicly subsidized housing and opportunity for use of Housing Choice Vouchers limits the ability of low-income households (who are typically cost burdened) to live in the Town.
Cost burden does vary by tenure (renter or ownership) in Los Gatos, Figure A-16. Renters experience a greater share of all forms of cost burden while owners experienced less of a cost burden. The cost burden by income decreases for each increase in earned income (AMI category) with a vast difference between the highest and lowest income groups. Seventy-eight percent of the lowest income group (zero percent to 30 percent of AMI) pay 15 Housing Needs Data Report: Los Gatos, ABAG/MTC Staff and Baird + Driskell Community Planning, 2021.
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more than 50 percent of their gross household incomes in housing costs (Figure A-16). Figure A-14 identifies the housing vouchers distribution by tract within Los Gatos.
Figure A-14 Housing Choice Vouchers by Census Tract
Source: California Department of Housing and Community Development AFFH Data Viewer
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Figure A-15 through Figure A-19 shows cost burden distribution by jurisdiction, tenure, Area Median Income (AMI), race and ethnicity, and the size of the families. Renters experience a greater share of all forms of cost burden (42 percent) while owners experienced 28 percent cost burden (Figure A-16). The cost burden by income decreases for each increase in earned income (AMI category) with a vast difference between the highest and lowest income groups (16 percent versus 90 percent). Seventy-eight percent of the lowest income group pay more than 50 percent of their gross household incomes in housing costs.
There is consistency in housing cost burden in Los Gatos by race and ethnicity. All households have similar shares of residents paying less than 30 percent of their income on housing. Hispanic and Black/African American residents were the only groups to experience a greater percentage of households spending 50 percent or more of their income than 30 percent to 50 percent of their income, indicating larger shares of extreme cost burdens, see Figure A-18.
Figure A-15 Overpayment (Cost Burden) by Jurisdiction, 2019 Source: ABAG Housing Needs Data Workbook
Figure A-16 Overpayment (Cost Burden) by Tenure, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
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Figure A-17 Overpayment (Cost Burden) by AMI, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
Figure A-18 Overpayment (Cost Burden) by Race and Ethnicity, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
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Figure A-19 Overpayment (Cost Burden) by Family Size, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
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October 2022 Appendix A A-35
Figure A-20 Overpayment (Cost Burden) for Renter Households by Census Tract, 2019 Source: California Department of Housing and Community Development AFFH Data Viewer
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Figure A-21 Overpayment (Cost Burden) for Owner Households by Census Tract, 2019 Source: California Department of Housing and Community Development AFFH Data Viewer
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Overcrowding. The vast majority of households (97 percent) in Los Gatos are not overcrowded—indicated by more than one occupant per room (Figure A-22). Renter households are more likely to be overcrowded, with six percent of renter households with more than one occupant per room, compared to 0.3 percent of owner households (Figure B-32).
Figure A-22 Overpayment (Cost Burden) for Owner Households by Census Tract, 2019 Source: ABAG Housing Needs Data Workbook, U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2013-2017 release
Hispanic residents experience the highest rates of overcrowding (Figure B-34). The rest of the Town’s population experiences approximately two percent to 3.5 percent overcrowding. 97% 92% 93%
5% 4%
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Figure A-23 Occupants per Room by Jurisdiction, 2019
Source: ABAG Housing Needs Data Workbook
Figure A-24 Occupants per Room by Tenure, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
Figure A-25 Overcrowding by Race and Ethnicity, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
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October 2022 Appendix A A-39
Figure A-26 Occupants per Room by AMI, Los Gatos, 2019
Source: ABAG Housing Needs Data Workbook
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Figure A-27 Overcrowded Households by Census Tract, 2019 Source: California Department of Housing and Community Development AFFH Data Viewer
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Substandard housing. Data on housing condition are limited, with the most consistent data available across jurisdictions found in the American Community Survey (ACS)—which captures units in substandard condition as self-reported in Census surveys. Renters in Los Gatos report living in substandard housing in 5.5 percent of housing units, with the more units lacking complete kitchen facilities (4.1 percent). As shown in Figure A-28, about 0.4 percent of owner households are lacking complete kitchens and 0.6 percent lack complete plumbing.
Figure A-28 Percent of Units Lacking Complete Kitchen and Plumbing Facilities, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
Homelessness. In 2019, 9,706 people were experiencing homelessness in the county during the one-day count (point-in-time), with only 18 percent of people in emergency or transitional shelter while the remaining 82 percent were unsheltered. The majority of unsheltered people experiencing homelessness were in households without children. The majority of people in transitional housing were in households with children or people without children, as shown in Figure A-29.
People who identify as American Indian or Alaskan Native (approximately eight percent of the homeless population compared to less than one percent of the total population), Black (approximately 19 percent, compared to two and a half percent of the total population), , and Other Race or Multiple Races (approximately 24 percent compared to 16 percent of the total population) are overrepresented in the homeless population compared to their share of the general population, as shown in Figure A-30. People struggling with chronic substance abuse (35 percent), severe mental illness (42 percent), and post-traumatic stress disorder (33 percent) represented a substantial share of the homeless population in 2019. Losing a job or being evicted was reported to be the causal events that led to homelessness in 44 percent of incidents of homelessness16. 16 According to Santa Clara County’s Homeless Census & Survey (2019); 2019 SCC Homeless Census and Survey Exec Summary.pdf (sccgov.org).
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Figure A-29 Homelessness by Household Type and Shelter Status, Santa Clara County, 2019 Source: ABAG Housing Needs Data Workbook
Figure A-30 Share of General and Homeless Populations by Race, Santa Clara County, 2019 Source: ABAG Housing Needs Data Workbook
Sheltered - Emergency Shelter 7 377 696
Sheltered - Transitional Housing 3 301 400
Unsheltered 266 243 7,413
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Displacement. According to the Sensitive Communities map of vulnerable communities, one area north of Highway 9 and west of Highway 17 were vulnerable to displacement. The Town has 169 assisted units, but all were rated as low risk of conversion. Figure A-31 illustrates the social vulnerability index, identifying the census tracts by lower or higher social vulnerability.
Figure A-31 Social Vulnerability Index by Census Tract, 2018 Source: California Department of Housing and Community Development AFFH Data Viewer
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Displacement Sensitive Communities
“According to the Urban Displacement Project, communities were designated sensitive if they met the following criteria:
▪ They currently have populations vulnerable to displacement in the event of increased redevelopment and drastic shifts in housing cost. Vulnerability is defined as:
▪ Share of very low-income residents is above 20 percent, 2017 AND the tract meets two of the following criteria:
▪ Share of renters is above 40 percent, 2017
▪ Share of people of color is above 50 percent, 2017
▪ Share of very low-income households (50 percent AMI or below) that are severely rent burdened households is above the county median, 2017
▪ They or areas in close proximity have been experiencing displacement pressures.
Displacement pressure is defined as:
▪ Percent change in rent above county median for rent increases, 2012-2017 OR
▪ Difference between tract median rent and median rent for surrounding tracts above median for all tracts in county (rent gap), 2017”
Source: https://www.sensitivecommunities.org/.
Access to mortgage loans. In many communities, disparities by race and ethnicity are prevalent for home mortgage applications, particularly in denial rates. This is less true in Los Gatos (Figure A-32). Mortgage denial rates range from 17 percent to 25 percent. American Indian or Alaska Native, Non-Hispanic and Black/African American residents experienced the next highest rejection rate at 25 percent and 22 percent.
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October 2022 Appendix A A-45
Figure A-32 Mortgage Applications and Acceptance by Race, 2018 and 2019 Source: ABAG Housing Needs Data Workbook, Federal Financial Institutions Examination Council's (FFIEC) Home Mortgage Disclosure Act loan/application register (LAR) files.
11%
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Disproportionate Housing Needs
Cost Burden, City of Los Gatos, 2019
Area Median Income (AMI)
Overcrowding, City of Los Gatos, 2019
Occupants per Room by Tenure
Substandard Housing, City of Los Gatos, 2019
Incomplete Kitchen and Plumbing Facilities by Tenure
Homelessness, Santa Clara County, 2019
Race and Ethnicity
Share of Homeless
Population
Share of Overall
Population
American Indian or Alaska Native 8% 1%
Asian / API 5% 37%
Black or African American 19% 2%
White 44% 44%
Other Race or Multiple Races 24% 16%
Displacement, 2020
Assisted Units at High or Very
High Risk of Displacement City of Los Gatos Santa Clara County Number of Units 0 0
% of Assisted Units 0% 0%
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Housing Needs Assessment
APPENDIX
B
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-1
B.1 Introduction
This appendix of the Housing Element describes existing housing needs and conditions in the Town of Los Gatos.
The analysis in this section primarily utilizes data compiled by Association of Bay Area Governments/ Metropolitan Transportation Commission (ABAG/MTC) in the “Housing Needs Data Report: Los Gatos” (ABAG/MTC, Baird + Driskell Community Planning, April 2, 2021). This data packet was approved by the California Department of Housing and Community Development (HCD).
Overview of Bay Area Housing
The Bay Area continues to see growth in both population and jobs, which means more housing of various types and sizes is needed to ensure that residents across all income levels, ages, and abilities have a place to call home. While the number of people drawn to the region over the past 30 years has steadily increased, housing production has stalled, contributing to the housing shortage that communities are experiencing today. In many communities, this has resulted in residents being priced out, increased traffic congestion caused by longer commutes, and fewer people across incomes being able to purchase homes or meet surging rents.
The 2023-2031 Housing Element Update provides a roadmap for how to meet growth and housing challenges.
As required by the State, the Housing Element identifies what the existing housing conditions and community needs are, reiterates goals, and creates a plan for more housing.
Summary of Key Facts
▪ Population – Generally, the population of the Bay Area continues to grow because of new births (natural growth) and the strong economy draws new residents to the region. The population of the Town of Los Gatos increased by 10 percent from 2000 to 2020, which is below the growth rate of the Bay Area. ▪ Age – In 2019, the youth population of the Town, under the age of 18, was 6,767 and the senior population, 65 and older, was 6,393. These age groups represent 22. percent and 20.8 percent, respectively, of the Town’s population.
▪ Race/Ethnicity – In 2020, 72.3 percent of the Town of Los Gatos population was White, while 0.9 percent was African American, 14.8 percent was Asian, and 7.9 percent was Latinx. People of color in Los Gatos comprise a proportion below the overall proportion in the Bay Area as a whole0F 1 .
▪ Employment – The Town of Los Gatos residents most commonly work in the Financial and Professional Services industry. From January 2010 to January 2021, the unemployment rate in the Town decreased by
2.9 percent. Since 2010, the number of jobs located in the jurisdiction increased by 4,440 (28.8 percent).
Additionally, the jobs-household ratio in the Town of Los Gatos has increased from 1.32 jobs per household in 2002 to 1.59 in 2018.
▪ Number of Homes – The number of new homes built in the Bay Area has not kept pace with the demand, resulting in longer commutes, increasing prices, and exacerbating issues of displacement and homelessness. The number of homes in the Town of Los Gatos increased 4.5 percent from 2010 to 2020, 1 The Census Bureau’s American Community Survey accounts for ethnic origin separate from racial identity. The numbers reported here use an accounting of both such that the racial categories are shown exclusive of Latinx status, to allow for an accounting of the Latinx population regardless of racial identity.
The term Hispanic has historically been used to describe people from numerous Central American, South American, and Caribbean countries. In recent years, the term Latino or Latinx has become preferred. This report generally uses Latinx, but occasionally when discussing US Census data, we use Hispanic or Non-Hispanic, to clearly link to the data source.
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which is below the growth rate for Santa Clara County and below the growth rate of the region’s housing stock during this time period1F
2 .
▪ Home Prices – A diversity of homes at all income levels would create opportunities for all of the Los Gatos community to live in Town.
✓ Ownership – The largest proportion of homes had a value greater than $2 million in 2019. Home prices increased by 98.4 percent from 2010 to 2020.
✓ Rental Prices – The typical contract rent for an apartment in the Town of Los Gatos was $2,270 in 2019. Rental prices increased by 60.9 percent from 2009 to 2019. To rent a typical apartment without cost burden, a household would need to make $90,960 per year 2F
3. ▪ Housing Type – It is important to have a variety of housing types to meet the needs of a community today and in the future. In 2020, 60 percent of homes in the Town of Los Gatos were single-family detached, 13 percent were single-family attached, 9 percent were small multi-family (two to four units), and 18 percent were medium or large multi-family (five or more units). Between 2010 and 2020, the number of singlefamily units increased more than multi-family units. Los Gatos has a higher portion of detached singlefamily homes than other jurisdictions in the region. ▪ Housing Demand – The Town is populated with a higher share of high-income earners (65% greater than 100% of AMI) than the rest of the county, therefore, housing is built for these higher income and amenity levels. Without goals, policies and programs that specifically address the need to build “affordable housing” targeting incomes less than 100% of AMI (not above greater than 100% AMI), it is highly unlikely developers will voluntarily build housing for low and very-low-income levels. ▪ Cost Burden – The U.S. Department of Housing and Urban Development (HUD) considers housing to be affordable for a household if the household spends less than 30 percent of its income on housing costs. A household is considered “cost-burdened” if it spends more than 30 percent of its monthly income on housing costs, while those who spend more than 50 percent of their income on housing costs are considered “severely cost-burdened.” In the Town of Los Gatos, 20 percent of households spend 30 percent to 50 percent of their income on housing, while 16 percent of households are severely cost burdened and use the majority of their income for housing. ▪ Displacement/Gentrification – According to research from the University of California (UC), Berkeley no households in the Town of Los Gatos live in neighborhoods that are susceptible to or experiencing displacement, and none live in areas at risk of or undergoing gentrification. All households in the Town live in neighborhoods where low-income households are likely excluded due to prohibitive housing costs. ▪ Neighborhood – All residents in Los Gatos live in neighborhoods identified as “Highest Resource” or “High Resource” areas by State-commissioned research, while no residents live in areas identified by this research as “Low Resource” or “High Segregation and Poverty” areas. These neighborhood designations are based on a range of indicators covering areas such as education, poverty, proximity to jobs and economic opportunities, low pollution levels, and other factors 3F 4 .
2 According to HCD Annual Progress Report Dashboard (as of September 20, 2021). 3 Note that contract rents may differ significantly from, and often being lower than, current listing prices. 4 For more information on the “opportunity area” categories developed by HCD and the California Tax Credit Allocation Committee, see this website:
https://www.treasurer.ca.gov/ctcac/opportunity.asp. The degree to which different jurisdictions and neighborhoods have access to opportunity will likely need to be analyzed as part of new Housing Element requirements related to affirmatively furthering fair housing. ABAG/MTC will be providing jurisdictions with technical assistance on this topic this summer, following the release of additional guidance from HCD.
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October 2022 Appendix B B-3
▪ Special Housing Needs – Some population groups may have special housing needs that require specific program responses, and these groups may experience barriers to accessing stable housing due to their specific housing circumstances. In Los Gatos, 9 percent of residents have a disability (physical, developmental, etc.), and may require accessible housing. Additionally, 6 percent of Los Gatos households are larger households with five or more people and likely need larger housing units with three bedrooms or more. 8.2 percent of households are female-headed families, which are often at greater risk of housing insecurity.
B.2 Population, Employment, and Household
Characteristics
Population
The Bay Area is the fifth-largest metropolitan area in the nation and has seen a steady increase in population since 1990, except for a dip during the Great Recession. Many towns and cities in the region have experienced significant growth in jobs and population. While these trends have led to a corresponding increase in demand for housing across the region, the regional production of housing has largely not kept pace with job and population growth.
According to the data, the population of the Town of Los Gatos was estimated to be 31,439 in 2020. The population of Los Gatos makes up 1.6 percent of Santa Clara County4F 5 . In Los Gatos, roughly 13.5 percent of its
population moved during the past year, a number that is roughly the same as the regional rate of 13.4 percent.
Table B-1 shows population growth trends for the Town of Los Gatos, Santa Clara County, and the Bay Area as a whole.
Table B-1 Population Growth Trends
Geography 1990 1995 2000 2005 2010 2015 2020
Town of Los Gatos 27,357 28,751 28,592 28,872 29,413 30,807 31,439 Santa Clara County 1,497,577 1,594,818 1,682,585 1,752,696 1,781,642 1,912,180 1,961,969 Bay Area 6,020,147 6,381,961 6,784,348 7,073,912 7,150,739 7,595,694 7,790,537 SOURCE: California Department of Finance, E-5 series.
NOTE: Universe: Total population; Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-01.
Since 2000, the Town of Los Gatos population has increased by approximately 10 percent, which is below the rate for the region as a whole, at 14.8 percent. From 1990 to 2000, the population increased by 4.5 percent.
During the first decade of the 2000’s the population increased by 2.9 percent. In the most recent decade, the population increased by 6.9 percent. Figure B-1 shows population growth trends in percentages.
In 2019 the Town of Los Gatos annexed 24 urban islands totaling 116.1 acres. The islands were comprised of approximately 308 single-family residences and the staff report assumed 2.2 persons per household for an estimated increase in population of 678.
5 To compare the rate of growth across various geographic scales, Figure B-1 shows population for the jurisdiction, county, and region indexed to the population in the year 1990. This means that the data points represent the population growth (i.e., percent change) in each of these geographies relative to their populations in 1990.
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Figure B-1 Population Growth Trends
Source: California Department of Finance, E-5 series.
Note: The data shown on the graph represents population for the jurisdiction, county, and region indexed to the population in the first year shown. The data points represent the relative population growth in each of these geographies relative to their populations in that year. For some jurisdictions, a break may appear at the end of each decade (1999, 2009) as estimates are compared to census counts. DOF uses the decennial census to benchmark subsequent population estimates. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-01
Age
The distribution of age groups in a community shapes what types of housing the community may need in the near future. An increase in the older population may mean there is a developing need for more senior housing options, while higher numbers of children and young families can point to the need for more family housing options and related services. There has also been a move by many to age-in-place or downsize to stay within their communities, which can mean more multi-family and accessible units are needed.
In the Town of Los Gatos, the median age in 2000 was approximately 41 years. By 2019, the median age increased to approximately 47 years. The cohorts age 25 to 34 and age 35 to 44 decreased between 2000 and 2019, while all age cohorts 55 and above increased during the same time period. Figure B-2 shows population by age for the years 2000, 2010, and 2019 for the Town of Los Gatos.
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October 2022 Appendix B B-5
Figure B-2 Los Gatos Population by Age, 2000-2019
Source: U.S. Census Bureau, Census 2000 SF1, Table P12; U.S. Census Bureau, Census 2010 SF1, Table P12; U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B01001. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP04.
Note: Universe: Total population.
Looking at the senior and youth population by race can add an additional layer of understanding, as families and seniors of color are even more likely to experience challenges finding affordable housing. People of color 5F 6 make
up 13.4 percent of seniors and 23.7 percent of youth under 18. Figure B-3 shows population age by race for the Town of Los Gatos.
6 Here, all non-white racial groups are counted.
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Figure B-3 Los Gatos Population Age by Race
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B01001(A-G). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table SEN-02.
Notes: Universe: Total population. In the sources for this table, the Census Bureau does not disaggregate racial groups by Hispanic/Latinx ethnicity, and an overlapping category of Hispanic / non-Hispanic groups has not been shown to avoid double counting in the stacked bar chart.
Race and Ethnicity
Understanding the racial makeup of the Town and region is important for designing and implementing effective housing policies and programs. These patterns are shaped by both market factors and government actions, such as exclusionary zoning, discriminatory lending practices, and displacement that has occurred over time and continues to impact communities of color today 6F
7 .
Since 2000, the percentage of residents in the Town of Los Gatos identifying as White, Non-Hispanic has decreased by 13.3 percentage points, with this 2019 population standing at 22,231. At the same time the percentage of residents of all Other Race of Multiple Races, Non-Hispanic has increased. In absolute terms, the Asian/API, Non-Hispanic population increased the most while the White, Non-Hispanic population decreased the most. Figure B-4 shows population for the Town of Los Gatos by race for 2000, 2010, and 2019. 7 See, for example, Rothstein, R. (2017). The color of law: a forgotten history of how our government segregated America. New York, NY & London, UK:
Liveright Publishing.
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Figure B-4 Los Gatos Population by Race, 2000-2019
Source: U.S. Census Bureau, Census 2000, Table P004; U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B03002. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-02.
Notes: Universe: Total population. Data for 2019 represents 2015-2019 ACS estimates. The Census Bureau defines Hispanic/Latinx ethnicity separate from racial categories. For the purposes of this graph, the “Hispanic or Latinx” racial/ethnic group represents those who identify as having Hispanic/Latinx ethnicity and may also be members of any racial group. All other racial categories on this graph represent those who identify with that racial category and do not identify with Hispanic/Latinx ethnicity.
Employment Trends
Balance of Jobs and Workers
A town houses employed residents who either work in the community where they live or work elsewhere in the region. Conversely, a town may have job sites that employ residents from the same town, but more often employ workers that commute from outside of it. Smaller towns typically will have more employed residents than jobs and export workers, while larger towns tend to have a surplus of jobs and import workers. To some extent the regional transportation system (bus system, for example) is set up for this flow of workers to the region’s core job centers. At the same time, as the housing affordability crisis has illustrated, local imbalances may be severe, where local jobs and worker populations are out of sync at a sub-regional scale. One measure of this is the relationship between workers and jobs. A town with a surplus of workers “exports” workers to other parts of the region, while a town with a surplus of jobs must conversely “import” them. Between 2002 and 2018, the number of jobs in the Town of Los Gatos increased by 23.8 percent. Figure 3-5 shows jobs in the Town of Los Gatos between 2002 and 2018.
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Figure B-5 Los Gatos Jobs in a Jurisdiction
Source: U.S. Census Bureau, Longitudinal Employer-Household Dynamics, Workplace Area Characteristics (WAC) files, 2002-2018. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-11.
Notes: Universe: Jobs from unemployment insurance-covered employment (private, state and local government) plus United States Office of Personnel Management-sourced Federal employment. The data is tabulated by place of work, regardless of where a worker lives. The source data is provided at the census block level. These are cross walked to jurisdictions and summarized.
The figure below shows the balance when comparing jobs to workers, broken down by different wage groups, offering additional insight into local dynamics. A community may offer employment for relatively low-income workers, but have relatively few housing options for those workers. Conversely, it may house residents who are low-wage workers, but offer few employment opportunities for them. Such relationships may cast extra light on potentially pent-up demand for housing in particular price categories. A relative surplus of jobs relative to residents in a given wage category suggests the need to import those workers, while conversely, surpluses of workers mean the community will export those workers to other jurisdictions. Such flows are not inherently bad, though over time, sub-regional imbalances may appear. The Town has more jobs than residents in wage categories below $75,000 per year. At the high end of the wage spectrum (i.e., wages over $75,000 per year), the Town has more high-wage residents than high-wage jobs7F 8 . Figure B-6 shows workers by earnings, place of
residence, and place of work within the jurisdiction of the Town of Los Gatos. 8 The source table is top coded at $75,000, precluding more fine-grained analysis at the higher end of the wage spectrum.
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October 2022 Appendix B B-9
Figure B-6 Workers by Earnings, by Los Gatos Jurisdiction as Place of Work and Place of Residence Source: U.S. Census Bureau, American Community Survey 5-Year Data 2015-2019, B08119, B08519. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-10.
Notes: Universe: Los Gatos Workers 16 years and over with earnings.
The next diagram shows the ratio of jobs to workers, by wage group. A value of 1.00 means that the Town has the same number of jobs in a wage group as it has resident workers, in principle, a balance. Values above 1.00 indicate a jurisdiction will need to import workers for jobs in a given wage group. Figure B-7 shows jobs to worker ratios for the Town Los Gatos.
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Figure B-7 Los Gatos Jobs-Worker Ratios, By Wage Group
Source: U.S. Census Bureau, Longitudinal Employer-Household Dynamics, Workplace Area Characteristics (WAC) files (Jobs); Residence Area Characteristics (RAC) files (Employed Residents), 2010-2018. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-14.
Notes: Universe: Jobs in a jurisdiction from unemployment insurance-covered employment (private, state and local government) plus United States Office of Personnel Management-sourced Federal employment. The ratio compares job counts by wage group from two tabulations of LEHD data: Counts by place of work relative to counts by place of residence. See text for details.
Such balances between jobs and workers may directly influence the housing demand in a community. New jobs may draw new residents, and when there is high demand for housing relative to supply, many workers may be unable to afford to live where they work, particularly where job growth has been in relatively lower wage jobs. The Town is a “net importer of workers” at the low-wage group, while at the high-wage group the Town is “exporting workers.” This dynamic not only means many workers will need to prepare for long commutes and time spent on the road, but in the aggregate, it contributes to traffic congestion and time lost for all road users.
If there are more jobs than employed residents, it means a community is relatively jobs-rich, typically also with a high jobs-per-employed-resident ratio. Therefore, bringing housing into the measure, the jobs per employed resident ratio in the Town of Los Gatos has increased from 1.32 in 2002, to 1.59 jobs per employed resident in 2018. In short, the Town of Los Gatos is a net importer of workers. Figure B-8 shows the Town of Los Gatos jobs per household ratio.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-11
Figure B-8 Jobs-Household Ratio
Source: U.S. Census Bureau, Longitudinal Employer-Household Dynamics, Workplace Area Characteristics (WAC) files (Jobs), 2002-2018; California Department of Finance, E-5 (Households). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-13.
Notes: Universe: Jobs in a jurisdiction from unemployment insurance-covered employment (private, state and local government) plus United States Office of Personnel Management-sourced Federal employment; households in a jurisdiction. The data is tabulated by place of work, regardless of where a worker lives. The source data is provided at the census block level. These are cross walked to jurisdictions and summarized. The ratio compares place of work wage and salary jobs with households, or occupied housing units. A similar measure is the ratio of jobs to housing units. However, this jobs-household ratio serves to compare the number of jobs in a jurisdiction to the number of housing units that are actually occupied. The difference between a jurisdiction’s jobs-housing ratio and jobs-household ratio will be most pronounced in jurisdictions with high vacancy rates, a high rate of units used for seasonal use, or a high rate of units used as short-term rentals.
Sector Composition
In terms of sectoral composition, the largest industry in which the Town of Los Gatos residents work is Financial and Professional Services, and the largest sector in which Santa Clara residents work is Health and Educational Services. For the Bay Area as a whole, the Health and Educational Services industry employs the most workers.
Figure B-9 shows resident employment by industry.
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B-12 Appendix B October 2022
Figure B-9 Resident Employment by Industry
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table C24030. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-06.
Notes: Universe: Civilian employed population age 16 years and over. The data displayed shows the industries in which jurisdiction residents work, regardless of the location where those residents are employed (whether within the jurisdiction or not). Categories are derived from the following source tables: Agriculture & Natural Resources: C24030_003E, C24030_030E; Construction: C24030_006E, C24030_033E; Manufacturing, Wholesale & Transportation: C24030_007E, C24030_034E, C24030_008E, C24030_035E, C24030_010E, C24030_037E; Retail: C24030_009E, C24030_036E; Information: C24030_013E, C24030_040E; Financial & Professional Services:
C24030_014E, C24030_041E, C24030_017E, C24030_044E; Health & Educational Services: C24030_021E, C24030_024E, C24030_048E, C24030_051E; Other: C24030_027E, C24030_054E, C24030_028E, C24030_055E.
Unemployment
In the Town of Los Gatos, there was a 2.9 percentage point decrease in the unemployment rate between January 2010 and January 2021. Jurisdictions throughout the region experienced a sharp rise in unemployment in 2020 due to impacts related to the COVID-19 pandemic, though with a general improvement and recovery in the later months of 2020. Figure B-10 shows the unemployment rates over the last decade for the Town of Los Gatos, Santa Clara County, and the Bay Area as a whole.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-13
Figure B-10 Los Gatos Unemployment Rate
Source: California Employment Development Department, Local Area Unemployment Statistics (LAUS), Sub-county areas monthly updates, 2010-2021. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-15.
Notes: Universe: Civilian noninstitutional population ages 16 and older. Unemployment rates for the jurisdiction level is derived from larger-geography estimates. This method assumes that the rates of change in employment and unemployment are exactly the same in each sub-county area as at the county level. If this assumption is not true for a specific sub-county area, then the estimates for that area may not be representative of the current economic conditions. Since this assumption is untested, caution should be employed when using these data. Only not seasonally-adjusted labor force (unemployment rates) data are developed for cities and CDPs.
Extremely Low-Income Households
Despite the economic and job growth experienced throughout the region since 1990, the income gap has continued to widen. California is one of the most economically unequal states in the nation, and the Bay Area has the highest income inequality between high- and low-income households in the state8F 9 .
In the Town of Los Gatos, 65 percent of households make more than 100 percent of the Area Median Income (AMI)9F
10, compared to 8.6 percent making less than 30 percent of AMI, which is considered extremely low-income.
Regionally, more than half of all households make more than 100 percent AMI, while 15 percent make less than 30 percent AMI. In Santa Clara County, 30 percent AMI is the equivalent to the annual income of $39,900 for a family of four. Many households with multiple wage earners, including food service workers, full-time students, teachers, farmworkers, and healthcare professionals, can fall into lower AMI categories due to relatively stagnant wages in many industries. Figure B-11 shows households by income level. 9 Bohn, S.et al. 2020. Income Inequality and Economic Opportunity in California. Public Policy Institute of California. 10 Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), S1anta Rosa Metro
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B-14 Appendix B October 2022
Figure B-11 Households by Household Income Level
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table ELI-01.
Notes: Universe: Occupied housing units. Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located. The data that is reported for the Bay Area is not based on a regional AMI but instead refers to the regional total of households in an income group relative to the AMI for the county where that household is located. Local jurisdictions are required to provide an estimate for their projected extremely low-income households (0-30 percent AMI) in their Housing Elements. HCD’s official Housing Element guidance notes that jurisdictions can use their RHNA for very low-income households (those making 0-50 percent AMI) to calculate their projected extremely low-income households. As Bay Area jurisdictions have not yet received their final RHNA numbers, this document does not contain the required data point of projected extremely low-income households. The report portion of the housing data needs packet contains more specific guidance for how local staff can calculate an estimate for projected extremely low-income households once jurisdictions receive their 6th cycle RHNA numbers. AMI levels in this chart are based on the HUD metro area where this jurisdiction is located. Households making between 80 and 120 percent of the AMI are moderate-income, those making 50 to 80 percent are low income, those making 30 to 50 percent are very low-income, and those making less than 30 percent are extremely low-income. This is then adjusted for household size.
Throughout the region, there are disparities between the incomes of homeowners and renters. Typically, the number of low-income renters greatly outpaces the amount of housing available that is affordable for these households. In the Town of Los Gatos, the largest proportion of renters falls in the Greater than 100 percent of AMI group, while the largest proportion of homeowners are found in the Greater than 100 percent of AMI group.
Figure B-12 shows household income by tenure.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-15
Figure B-12 Los Gatos Household Income Level by Tenure
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-21.
Notes: Universe: Occupied housing units. Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located.
Currently, people of color are more likely to experience poverty and financial instability as a result of Federal, State, and local housing policies that have historically excluded them from the same opportunities extended to White residents10F
11 . These economic disparities also leave communities of color at higher risk for housing insecurity, displacement, or homelessness.
In the Town of Los Gatos, Hispanic or Latinx and Other Race or Multiple Races (Hispanic and Non-Hispanic) residents experience the highest rates of poverty, followed by White (Hispanic and Non-Hispanic) residents.
Figure B-13 shows poverty status by race.
11 Moore, E., Montojo, N. and Mauri, N., 2019. Roots, Race & Place: A History of Racially Exclusionary Housing the San Francisco Bay Area. Hass Institute.
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Figure B-13 Los Gatos Poverty Status by Race
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B17001(A-I). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table ELI-03.
Notes: Universe: Population for whom poverty status is determined. The Census Bureau uses a federally defined poverty threshold that remains constant throughout the country and does not correspond to Area Median Income. For this table, the Census Bureau does not disaggregate racial groups by Hispanic/Latinx ethnicity. However, data for the white racial group is also reported for white householders who are not Hispanic/Latinx. Since residents who identify as white and Hispanic/Latinx may have very different experiences within the housing market and the economy from those who identify as white and non-Hispanic/Latinx, data for multiple white sub-groups are reported here. The racial/ethnic groups reported in this table are not all mutually exclusive. Therefore, the data should not be summed as the sum exceeds the population for whom poverty status is determined for this jurisdiction. However, all groups labelled “Hispanic and Non-Hispanic” are mutually exclusive, and the sum of the data for these groups is equivalent to the population for whom poverty status is determined.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-17
Tenure
The number of residents who own their homes compared to those who rent their homes can help identify the level of housing insecurity (i.e., ability for individuals to stay in their homes) in a town or city and region. Generally, renters may be displaced more quickly if prices increase.
In the Town of Los Gatos as of 2019, there are a total of 12,083 housing units, and fewer residents rent than own their homes: 35.1 percent versus 64.9 percent. By comparison, 43.6 percent of households in Santa Clara County are renters, while 43.9 percent of Bay Area households rent their homes. Figure B-14 shows housing tenure for Los Gatos, Santa Clara County, and the Bay Area as a whole.
Figure B-14 Housing Tenure
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25003. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-16.
Notes: Universe: Occupied housing units.
Homeownership rates often vary considerably across race and ethnicity in the Bay Area and throughout the country. These disparities not only reflect differences in income and wealth, but also stem from Federal, State, and local policies that limited access to homeownership for communities of color while facilitating homebuying for White residents. While many of these policies, such as redlining, have been formally disbanded, the impacts of race-based policy are still evident across Bay Area communities. 11F 12 In Los Gatos, 84 percent of Black households owned their homes, while homeownership rates were 72 percent for Asian households, 39 percent for Latinx households, and 65 percent for White households. Notably, recent changes to State law require local jurisdictions to examine these dynamics and other fair housing issues when updating their Housing Elements. Figure B-15 shows housing tenure by the race of the householder. 12 See, for example, Rothstein, R. (2017). The color of law: a forgotten history of how our government segregated America. New York, NY & London, UK:
Liveright Publishing.
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Figure B-15 Los Gatos Housing Tenure by Race of Householder Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25003(A-I). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-20.
Notes: Universe: Occupied housing units. For this table, the Census Bureau does not disaggregate racial groups by Hispanic/Latinx ethnicity. However, data for the white racial group is also reported for white householders who are not Hispanic/Latinx. Since residents who identify as white and Hispanic/Latinx may have very different experiences within the housing market and the economy from those who identify as white and non-Hispanic/Latinx, data for multiple white sub-groups are reported here. The racial/ethnic groups reported in this table are not all mutually exclusive. Therefore, the data should not be summed as the sum exceeds the total number of occupied housing units for this jurisdiction. However, all groups labelled “Hispanic and Non-Hispanic” are mutually exclusive, and the sum of the data for these groups is equivalent to the total number of occupied housing units.
The age of residents who rent or own their home can also signal the housing challenges a community is experiencing. Younger households tend to rent and may struggle to buy a first home in the Bay Area due to high housing costs. At the same time, senior homeowners seeking to downsize may have limited options in an expensive housing market.
In the Town of Los Gatos, 77.2 percent of householders between the ages of 25 and 34 are renters, and 36.4 percent of householders over 85 are renters. Figure B-16 shows housing tenure by age.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-19
Figure B-16 Los Gatos Housing Tenure by Age
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25007. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-18.
Notes: Universe: Occupied housing units.
In many communities, homeownership rates for households in single-family homes are substantially higher than the rates for households in multi-family housing. In the Town of Los Gatos, 86.2 percent of households in detached single-family homes are homeowners, while 13.2 percent of households in multi-family housing are homeowners. Figure B-17 shows housing tenure by housing type.
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B-20 Appendix B October 2022
Figure B-17 Los Gatos Housing Tenure by Housing Type
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25032. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-22.
Notes: Universe: Occupied housing units.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-21
Displacement
Because of increasing housing prices, displacement is a major concern in the Bay Area. Displacement has the most severe impacts on low- and moderate-income residents. When individuals or families are forced to leave their homes and communities, they also lose their support network.
The University of California UC, Berkeley, has mapped all neighborhoods in the Bay Area, identifying their risk for gentrification. They find that in the Town of Los Gatos, there are no households that live in neighborhoods that are susceptible to or experiencing displacement and none live in neighborhoods at risk of or undergoing gentrification. Equally important, some neighborhoods in the Bay Area do not have housing appropriate for a broad section of the workforce. The University of California, Berkeley, estimates that all households in the Town of Los Gatos live in neighborhoods where low-income households are likely to be excluded due to prohibitive housing costs 12F
13 . Figure B-18 shows household displacement risk and tenure.
Figure B-18 Los Gatos Households by Displacement Risk and Tenure Source: Urban Displacement Project for classification, American Community Survey 5-Year Data (2015-2019), Table B25003 for tenure.
Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-25.
Notes: Universe: Households. Displacement data is available at the census tract level. Staff aggregated tracts up to jurisdiction level using census 2010 population weights, assigning a tract to jurisdiction in proportion to block level population weights. Total household count may differ slightly from counts in other tables sourced from jurisdiction level sources. Categories are combined as follows for simplicity:
At risk of or Experiencing Exclusion: At Risk of Becoming Exclusive; Becoming Exclusive; Stable/Advanced Exclusive At risk of or Experiencing Gentrification: At Risk of Gentrification; Early/Ongoing Gentrification; Advanced Gentrification Stable Moderate/Mixed Income: Stable Moderate/Mixed Income Susceptible to or Experiencing Displacement: Low-Income/Susceptible to Displacement; Ongoing Displacement Other: High Student Population; Unavailable or Unreliable Data. 13 More information about this gentrification and displacement data is available at the Urban Displacement Project’s webpage:
https://www.urbandisplacement.org/. Specifically, one can learn more about the different gentrification/displacement typologies shown in Figure 18 at this link: https://www.urbandisplacement.org/sites/default/files/typology_sheet_2018_0.png. Additionally, one can view maps that show which typologies correspond to which parts of a jurisdiction here: https://www.urbandisplacement.org/san-francisco/sf-bay-area-gentrification-anddisplacement
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B-22 Appendix B October 2022
B.3 Housing Stock Characteristics
Housing Types, Year Built, Vacancy, and Permits
In recent years, most housing produced in the region and across the State consisted of single-family homes and larger multi-unit buildings. However, some households are increasingly interested in “missing middle housing” or “Small Multi-Unit Housing, including duplexes, triplexes, townhomes, cottage clusters, and accessory dwelling units. These housing types may open up more options across incomes and tenure, from young households seeking homeownership options to seniors looking to downsize and age-in-place.
The housing stock of the Town of Los Gatos in 2020 was made up of 60 percent Single-Family Home: Detached, 13 percent Single-Family Home: Attached, 9 percent Multi-family Housing: Two to Four Units, 18 percent Multifamily Housing: Five-Plus Units, and 0.5 percent Mobile Homes. In Los Gatos, the housing type that experienced the most growth between 2010 and 2020 was Single-Family Home: Detached. Figure B-19 shows housing type trends in Los Gatos for 2010 and 2020.
Figure B-19 Los Gatos Housing Type Trends
SOURCE: California Department of Finance, E-5 series. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-01.
NOTE: Universe: Housing units.
Production has not kept up with housing demand for several decades in the Bay Area, as the total number of units built and available has not yet come close to meeting the population and job growth experienced throughout the region. In the Town of Los Gatos, the largest proportion of the housing stock was Built 1960 to 1979, with 6,630 units constructed during this period. Since 2010, 2.6 percent of the current housing stock was built, which is 342 units (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25034). Figure B-20 shows housing units by the year built.
59.6%
13.0%
9.0%
17.9%
0.5%
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-23
Figure B-20 Los Gatos Housing Units by Year Structure Built SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25034. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-04.
NOTE: Universe: Housing units.
Throughout the Bay Area, vacancies make up 2.6 percent of the total housing units, with homes listed for rent, units used for Recreational or Occasional Use, and units not otherwise classified (Other Vacant) making up the majority of vacancies. The Census Bureau classifies a unit as vacant if no one is occupying it when census interviewers are conducting the American Community Survey or Decennial Census. Vacant units classified as For Recreational or Occasional Use are those that are held for short-term periods of use throughout the year.
Accordingly, vacation rentals and short-term rentals like Airbnb are likely to fall in this category. The Census Bureau classifies units as Other Vacant if they are vacant due to foreclosure, personal/family reasons, legal proceedings, repairs/renovations, abandonment, preparation for being rented or sold, or vacant for an extended absence for reasons such as a work assignment, military duty, or incarceration1 3F 14 . In a region with a thriving
economy and housing market like the Bay Area, units being renovated/repaired and prepared for rental or sale are likely to represent a large portion of the Other Vacant category. Additionally, the need for seismic retrofitting in older housing stock could also influence the proportion of Other Vacant units in some jurisdictions 14F 15 .
Vacant units make up 7.5 percent of the overall housing stock in the Town of Los Gatos. The rental vacancy stands at 8.2 percent, while the ownership vacancy rate is 0.4 percent. Of the vacant units in the Town of Los Gatos, the most common type of vacancy is Other Vacant, which represents almost half of all vacant rental units15F
16 . Figure B-21 shows vacant units by type.
14 For more information, see pages 3 through 6 of this list of definitions prepared by the Census Bureau:
https://www.census.gov/housing/hvs/definitions.pdf.
15 See Dow, P. (2018). Unpacking the Growth in San Francisco’s Vacant Housing Stock: Client Report for the San Francisco Planning Department. University of California, Berkeley.
16 The vacancy-rates-by-tenure is for a smaller universe than the total vacancy rate first reported, which in principle includes the full stock (7.5 percent).
The vacancy by tenure counts are rates relative to the rental stock (occupied and vacant) and ownership stock (occupied and vacant) but exclude a significant number of vacancy categories, including the numerically significant other vacant.
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Figure B-21 Los Gatos Vacant Units by Type
SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25004. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-03.
NOTE: Universe: Vacant housing units.
Between 2015 and 2020, 502 housing units were issued building permits in the Town of Los Gatos. Of those, approximately percent were for above moderate-income housing, approximately percent were for moderateincome housing, and approximately 1.0 percent were for low-income, and approximately 17.0 percent were for very low-income housing. Table B-2 shows residential building permits issued by the Town of Los Gatos by income group.
Table B-2 Los Gatos, Residential Building Permits by Income Group, 2015 to 2020 Income Group Number Percent
Very Low-Income Permits 49 revise all below
Low-Income Permits 3
Moderate-Income Permits 119
Above Moderate-Income Permits 331
Total 502 100.0%
SOURCE: California Department of Housing and Community Development (HCD), 5th Cycle Annual Progress Report Permit Summary (2020). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-11.
NOTE: Universe: Housing permits issued between 2015 and 2021. Notes: HCD uses the following definitions for the four income categories:
Very Low Income: units affordable to households making less than 50 percent of the Area Median Income for the county in which the jurisdiction is located. Low Income: units affordable to households making between 50 percent and 80 percent of the Area Median Income for the county in which the jurisdiction is located. Moderate Income: units affordable to households making between 80 percent and 120 percent of the Area Median Income for the county in which the jurisdiction is located. Above Moderate Income: units affordable to households making above 120 percent of the Area Median Income for the county in which the jurisdiction is located.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-25
Assisted Housing Developments At-Risk of Conversion
While there is a need to produce new affordable housing units, ensuring that the existing affordable housing stock remains affordable is also important. Additionally, it is typically faster and less expensive to preserve currently affordable units that are at risk of converting to market-rate than it is to build new affordable housing.
The data in the table below comes from the California Housing Partnership’s Preservation Database, the State’s most comprehensive source of information on subsidized affordable housing at risk of losing its affordable status and converting to market-rate housing16F
17 . According to the data, there are 169 assisted units in the Town of Los Gatos. Of these units, none were at high risk or very high risk of conversion. Table B-3 summarizes assisted units at risk in the Town of Los Gatos.
Table B-3 Assisted Units at Potential Risk of Conversion Income Los Gatos Santa Clara County Bay Area
Low-Income Units 169 28,001 110,177
Moderate-Income Units 0 1,471 3,375
High-Income Units 0 422 1,854
Very High-Income Units 0 270 1,053
Total 169 30,164 116,459
SOURCE: California Housing Partnership, Preservation Database (2020). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table RISK01.
NOTE: Universe: HUD, Low-Income Housing Tax Credit (LIHTC), USDA, and CalHFA projects. Subsidized or assisted developments that do not have one of the aforementioned financing sources may not be included. While California Housing Partnership’s Preservation Database is the state’s most comprehensive source of information on subsidized affordable housing at risk of losing its affordable status and converting to market-rate housing, this database does not include all deed-restricted affordable units in the state. Consequently, there may be at-risk assisted units in a jurisdiction that are not captured in this data table. Per HCD guidance, local jurisdictions must also list the specific affordable housing developments at-risk of converting to market rate uses. This document provides aggregate numbers of at risk units for each jurisdiction, but local planning staff should contact Danielle Mazzella with the California Housing Partnership at [email protected] to obtain a list of affordable properties that fall under this designation. California Housing Partnership uses the following categories for assisted housing developments in its database: Very-High Risk: affordable homes that are at-risk of converting to market rate within the next year that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable non-profit, mission-driven developer. High Risk: affordable homes that are at-risk of converting to market rate in the next 1-5 years that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable non-profit, mission-driven developer. Moderate Risk: affordable homes that are at-risk of converting to market rate in the next 5-10 years that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable non-profit, mission-driven developer. Low Risk: affordable homes that are at-risk of converting to market rate in 10+ years and/or are owned by a large/stable nonprofit, mission-driven developer.
Substandard Housing
Housing costs in the region are among the highest in the country, which could result in households, particularly renters, needing to live in substandard conditions in order to afford housing. Generally, there is limited data on the extent of substandard housing issues in a community. However, the Census Bureau data included in the graph below gives a sense of some of the substandard conditions that may be present in Los Gatos. For example, 4.1 percent of renters in Los Gatos reported lacking a kitchen and 1.4 percent of renters lack plumbing, compared to 0.4 percent of owners who lack a kitchen and 0.6 percent of owners who lack plumbing. Figure B-22 shows substandard housing issues in Los Gatos.
17 This database does not include all deed-restricted affordable units in the state, so there may be at-risk assisted units in a jurisdiction that are not captured in this data table.
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B-26 Appendix B October 2022
Figure B-22 Los Gatos Substandard Housing Issues
SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25053, Table B25043, Table B25049 Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-06.
NOTES: Universe: Occupied housing units. Per HCD guidance, this data should be supplemented by local estimates of units needing to be rehabilitated or replaced based on recent windshield surveys, local building department data, knowledgeable builders/developers in the community, or nonprofit housing developers or organizations.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-27
Home and Rent Values
Home prices reflect a complex mix of supply and demand factors, including an area’s demographic profile, labor market, prevailing wages, and job outlook, coupled with land and construction costs. In the Bay Area, the costs of housing have long been among the highest in the nation.
The typical home value in Los Gatos was estimated at $2,109,040 in December of 2020, per data from Zillow.
The largest proportion of homes were valued in excess of $2 million. By comparison, the typical home value is $1,290,970 in Santa Clara County and $1,077,230 in the Bay Area, with the largest share of units valued $1 million to $1.5 million (county) and $500 thousand to $750 thousand (region). Figure B-23 shows home values of owner-occupied housing units in Los Gatos.
Figure B-23 Home Values of Owner-Occupied Units
SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25075. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-07.
NOTE: Universe: Owner-occupied units.
The region’s home values have increased steadily since 2000, besides a decrease during the Great Recession.
The rise in home prices has been especially steep since 2012, with the median home value in the Bay Area nearly doubling during this time. Since 2001, the typical home value has increased 164.0 percent in Los Gatos from $798,770 to $2,109,040. This change is considerably greater than the change in Santa Clara County and for the region as a whole. Figure B-24 shows Zillow home value index for Los Gatos.
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Figure B-24 Zillow Home Value Index (ZHVI)
SOURCE: Zillow, Zillow Home Value Index (ZHVI). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-08.
NOTES: Universe: Owner-occupied housing units. Zillow describes the ZHVI as a smoothed, seasonally adjusted measure of the typical home value and market changes across a given region and housing type. The ZHVI reflects the typical value for homes in the 35th to 65th percentile range. The ZHVI includes all owner-occupied housing units, including both single-family homes and condominiums. More information on the ZHVI is available from Zillow. The regional estimate is a household-weighted average of county-level ZHVI files, where household counts are yearly estimates from DOF’s E-5 series For unincorporated areas, the value is a population weighted average of unincorporated communities in the county matched to census-designated population counts.
Similar to home values, rents have also increased dramatically across the Bay Area in recent years. Many renters have been priced out, evicted, or displaced, particularly communities of color. Residents finding themselves in one of these situations may have had to choose between commuting long distances to their jobs and schools or moving out of the region, and sometimes, out of the State.
In Los Gatos, the largest proportion of rental units rented in the ‘rent $2,000-$2,500 category’, totaling 24.2 percent, followed by 23.7 percent of units renting in the ‘rent $3,000 or More category.’ Looking beyond the Town, the largest share of units in Santa Clara County is in the ‘rent $2,000-$2,500 category’, compared to the ‘rent $1,500-$2,000 category’ for the Bay Area as a whole. Figure B-25 shows contract rents for renter-occupied units in Los Gatos, Santa Clara County, and the Bay Area as a whole.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-29
Figure B-25 Contract Rents for Renter-Occupied Units
SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25056. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-09.
NOTE: Universe: Renter-occupied housing units paying cash rent.
Since 2009, the median rent has increased by 33.5 percent in the Town of Los Gatos, from $1,700 to $2,270 per month. In Santa Clara County, the median rent has increased 39.6 percent, from $1,540 to $2,150. The median rent in the region has increased significantly during this time from $1,200 to $1,850, a 54.2 percent increase17F 18 .
Figure B-25 shows median contract rent in the Town of Los Gatos, Santa Clara County, and the Bay Area as a whole.
18 While the data on home values shown in Figure B-24 comes from Zillow, Zillow does not have data on rent prices available for most Bay Area jurisdictions. To have a more comprehensive dataset on rental data for the region, the rent data in this document comes from the U.S. Census Bureau’s American Community Survey, which may not fully reflect current rents. Local jurisdiction staff may want to supplement the data on rents with local realtor data or other sources for rent data that are more current than Census Bureau data.