Agenda packet — Los Gatos City Council, January 30, 2023 (part 5 of 8)

Section C Evaluation of Environmental Impacts 106 EMC Planning Group Los Gatos 6th Cycle Housing Element December 22, 2022
D. SOURCES
Environmental Setting/Background/Methodology
Town of Los Gatos. January 2011. Town of Los Gatos 2020 General Plan. Los Gatos, CA. —. July 2021. 2040 General Plan Draft Environmental Impact Report. Los Gatos, CA. —. June 2022a. 2040 General Plan Final Environmental Impact Report SCH#2020070175.

Los Gatos, CA.
https://losgatos2040.com/images/docs/5_LG_2040_GP_FEIR_RTC_June_2022.pdf —. June 2022b. Town of Los Gatos California 2040 General Plan. Los Gatos, CA. http://losgatos2040.com/documents.html
—. October 2022c. Town of Los Gatos 6th Cycle 2023-2031 Housing Element Update – HCD Draft – Initial Review Period. https://www.losgatosca.gov/DocumentCenter/View/31815/HDCInitial-Review-Draft-SubmittalDescription of Proposal California Department of Finance. May 2022. “E-5 Population and Housing Estimates for Cities, Counties, and the State, January 2021-2022, with 2020 Benchmark.” Accessed on October 24, 2022. https://dof.ca.gov/forecasting/demographics/estimates/e-5- population-and-housing-estimates-for-cities-counties-and-the-state-2020-2022/ Town of Los Gatos. October 2022c. Town of Los Gatos 6th Cycle 2023-2031 Housing Element Update – HCD Draft – Initial Review Period.
https://www.losgatosca.gov/DocumentCenter/View/31815/HDC-Initial-ReviewDraft-SubmittalAesthetics Caltrans. “California State Scenic Highway System Map.” Accessed on October 18, 2022. https://caltrans.maps.arcgis.com/apps/webappviewer/index.html?id=465dfd3d807c46 cc8e8057116f1aacaa
Google Earth. 2022.

Town of Los Gatos. July 2021. 2040 General Plan Draft Environmental Impact Report. Los Gatos, CA. —. June 2022a. 2040 General Plan Final Environmental Impact Report SCH#2020070175. Los Gatos, CA.
https://losgatos2040.com/images/docs/5_LG_2040_GP_FEIR_RTC_June_2022.pdf —. June 2022b. Town of Los Gatos California 2040 General Plan. Los Gatos, CA. http://losgatos2040.com/documents.html

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Section C Evaluation of Environmental Impacts 107 EMC Planning Group Los Gatos 6th Cycle Housing Element December 22, 2022
—. June 2022. Los Gatos Municipal Code.
https://library.municode.com/ca/los_gatos/codes/code_of_ordinances?nodeId=THC

OTOLOGACA
—. October 2022c. Town of Los Gatos 6th Cycle 2023-2031 Housing Element Update – HCD Draft – Initial Review Period. https://www.losgatosca.gov/DocumentCenter/View/31815/HDCInitial-Review-Draft-SubmittalAgriculture California Department of Conservation. “California Important Farmland Finder.” Accessed on October 27, 2022. https://maps.conservation.ca.gov/DLRP/CIFF/ Google Earth. 2022.

Town of Los Gatos. January 2011. Town of Los Gatos 2020 General Plan. Los Gatos, CA. —. November 2019. Town of Los Gatos Zoning Map. Los Gatos, CA. —. July 2021. 2040 General Plan Draft Environmental Impact Report. Los Gatos, CA. —. June 2022. Town of Los Gatos California 2040 General Plan. Los Gatos, CA. http://losgatos2040.com/documents.html
Air Quality
Bay Area Air Quality Management District. April 2017. Final 2017 Clean Air Plan. https://www.baaqmd.gov/~/media/files/planning-and-research/plans/2017-clean-airplan/attachment-a_-proposed-final-cap-vol-1-pdf.pdf?la=en Town of Los Gatos. October 2012. Los Gatos Sustainability Plan. Los Gatos, CA. https://www.losgatosca.gov/DocumentCenter/View/8162/LosGatosSustainabilityPlan_October-2012_201308121810582238?bidId= —. July 2021. 2040 General Plan Draft Environmental Impact Report. Los Gatos, CA. —. June 2022a. 2040 General Plan Final Environmental Impact Report SCH#2020070175.

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Section C Evaluation of Environmental Impacts 109 EMC Planning Group Los Gatos 6th Cycle Housing Element December 22, 2022
—. June 2022a. 2040 General Plan Final Environmental Impact Report SCH#2020070175.

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Section C Evaluation of Environmental Impacts 110 EMC Planning Group Los Gatos 6th Cycle Housing Element December 22, 2022
Town of Los Gatos. July 2021. 2040 General Plan Draft Environmental Impact Report. Los Gatos, CA. —. June 2022a. 2040 General Plan Final Environmental Impact Report SCH#2020070175.

Town of Los Gatos. July 2021. 2040 General Plan Draft Environmental Impact Report. Los Gatos, CA. —. June 2022a. 2040 General Plan Final Environmental Impact Report SCH#2020070175.

Los Gatos, CA.
https://losgatos2040.com/images/docs/5_LG_2040_GP_FEIR_RTC_June_2022.pdf —. June 2022b. Town of Los Gatos California 2040 General Plan. Los Gatos, CA. http://losgatos2040.com/documents.html
—. June 2022. Los Gatos Municipal Code.
https://library.municode.com/ca/los_gatos/codes/code_of_ordinances?nodeId=THC

OTOLOGACA
—. October 2022c. Town of Los Gatos 6th Cycle 2023-2031 Housing Element Update – HCD Draft – Initial Review Period. https://www.losgatosca.gov/DocumentCenter/View/31815/HDCInitial-Review-Draft-SubmittalLand Use and Planning Association of Bay Area Governments. July 2017. Plan Bay Area 2040. http://files.mtc.ca.gov/library/pub/30060.pdf
Bay Area Air Quality Management District. April 2017. Final 2017 Clean Air Plan. https://www.baaqmd.gov/~/media/files/planning-and-research/plans/2017-clean-airplan/attachment-a_-proposed-final-cap-vol-1-pdf.pdf?la=en

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Section C Evaluation of Environmental Impacts 111 EMC Planning Group Los Gatos 6th Cycle Housing Element December 22, 2022
Town of Los Gatos. October 2012. Los Gatos Sustainability Plan. Los Gatos, CA. https://www.losgatosca.gov/DocumentCenter/View/8162/LosGatosSustainabilityPlan_October-2012_201308121810582238?bidId= —. July 2021. 2040 General Plan Draft Environmental Impact Report. Los Gatos, CA. —. June 2022a. 2040 General Plan Final Environmental Impact Report SCH#2020070175.

Los Gatos, CA.
https://losgatos2040.com/images/docs/5_LG_2040_GP_FEIR_RTC_June_2022.pdf —. June 2022b. Town of Los Gatos California 2040 General Plan. Los Gatos, CA. http://losgatos2040.com/documents.html
—. June 2022. Los Gatos Municipal Code.
https://library.municode.com/ca/los_gatos/codes/code_of_ordinances?nodeId=THC

OTOLOGACA
—. October 2022c. Town of Los Gatos 6th Cycle 2023-2031 Housing Element Update – HCD Draft – Initial Review Period. https://www.losgatosca.gov/DocumentCenter/View/31815/HDCInitial-Review-Draft-SubmittalNoise Town of Los Gatos. July 2021. 2040 General Plan Draft Environmental Impact Report. Los Gatos, CA. —. June 2022a. 2040 General Plan Final Environmental Impact Report SCH#2020070175.

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Section C Evaluation of Environmental Impacts 112 EMC Planning Group Los Gatos 6th Cycle Housing Element December 22, 2022
—. June 2022. Los Gatos Municipal Code.
https://library.municode.com/ca/los_gatos/codes/code_of_ordinances?nodeId=THC

OTOLOGACA
—. October 2022c. Town of Los Gatos 6th Cycle 2023-2031 Housing Element Update – HCD Draft – Initial Review Period. https://www.losgatosca.gov/DocumentCenter/View/31815/HDCInitial-Review-Draft-SubmittalPopulation and Housing Town of Los Gatos. July 2021. 2040 General Plan Draft Environmental Impact Report. Los Gatos, CA. —. June 2022a. 2040 General Plan Final Environmental Impact Report SCH#2020070175.

Los Gatos, CA.
https://losgatos2040.com/images/docs/5_LG_2040_GP_FEIR_RTC_June_2022.pdf —. June 2022b. Town of Los Gatos California 2040 General Plan. Los Gatos, CA. http://losgatos2040.com/documents.html
—. October 2022c. Town of Los Gatos 6th Cycle 2023-2031 Housing Element Update – HCD Draft – Initial Review Period. https://www.losgatosca.gov/DocumentCenter/View/31815/HDCInitial-Review-Draft-SubmittalPublic Services California Department of Finance. May 2022. “E-5 Population and Housing Estimates for Cities, Counties, and the State, January 2021-2022, with 2020 Benchmark.” Accessed on October 24, 2022. https://dof.ca.gov/forecasting/demographics/estimates/e-5- population-and-housing-estimates-for-cities-counties-and-the-state-2020-2022/ Cambrian School District. “Cambrian School District.” Accessed on November 8, 2022. chromeextension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.cambriansd.org/cms/lib /CA01902282/Centricity/Domain/369/District%20Map%208.2.17.pdf Campbell Union High School District. “Campbell Union High Explorer.” Accessed on November 8, 2022. https://campbellhighdistrictexplorer.azurewebsites.net/ Campbell Union School District. “Where We Are.” Accessed on November 8, 2022. https://www.campbellusd.org/whereweare
Los Gatos-Saratoga Joint Union High School District. “Los Gatos-Saratoga Joint Union High School District.” Accessed on November 8, 2022. chromeextension://efaidnbmnnnibpcajpcglclefindmkaj/https://cdn5- ss11.sharpschool.com/UserFiles/Servers/Server_87205/File/District%20Information/ 2022%20with%20North%2040%20district%20Large%20Map.pdf

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Los Gatos Union School District. “SchoolSite Locator.” Accessed on November 8, 2022. https://portal.schoolsitelocator.com/apps/ssl/?districtcode=00215 Town of Los Gatos. July 2021. 2040 General Plan Draft Environmental Impact Report. Los Gatos, CA. —. June 2022a. 2040 General Plan Final Environmental Impact Report SCH#2020070175.

Chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://1.cdn.edl.io/ 4IG0VO3LMqjGlSy47x70hqmSI641ljrtp14Vijs85FsiIzGO.pdf
Recreation
Town of Los Gatos. July 2021. 2040 General Plan Draft Environmental Impact Report. Los Gatos, CA. —. June 2022a. 2040 General Plan Final Environmental Impact Report SCH#2020070175.

Los Gatos, CA.
https://losgatos2040.com/images/docs/5_LG_2040_GP_FEIR_RTC_June_2022.pdf

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Section C Evaluation of Environmental Impacts 114 EMC Planning Group Los Gatos 6th Cycle Housing Element December 22, 2022
—. June 2022b. Town of Los Gatos California 2040 General Plan. Los Gatos, CA. http://losgatos2040.com/documents.html
—. October 2022c. Town of Los Gatos 6th Cycle 2023-2031 Housing Element Update – HCD Draft – Initial Review Period. https://www.losgatosca.gov/DocumentCenter/View/31815/HDCInitial-Review-Draft-SubmittalTribal Cultural Resources Town of Los Gatos. July 2021. 2040 General Plan Draft Environmental Impact Report. Los Gatos, CA. —. June 2022a. 2040 General Plan Final Environmental Impact Report SCH#2020070175.

Los Gatos, CA.
https://losgatos2040.com/images/docs/5_LG_2040_GP_FEIR_RTC_June_2022.pdf —. June 2022b. Town of Los Gatos California 2040 General Plan. Los Gatos, CA. http://losgatos2040.com/documents.html
—. June 2022. Los Gatos Municipal Code.
https://library.municode.com/ca/los_gatos/codes/code_of_ordinances?nodeId=THC

OTOLOGACA
—. October 2022c. Town of Los Gatos 6th Cycle 2023-2031 Housing Element Update – HCD Draft – Initial Review Period. https://www.losgatosca.gov/DocumentCenter/View/31815/HDCInitial-Review-Draft-SubmittalUtilities and Service Systems San Jose Water Company. June 2021. 2020 Urban Water Management Plan. San Jose, CA. https://www.sjwater.com/sites/default/files/2021-
06/2020%20UWMP%20FINAL%20with%20Appendices.pdf
Town of Los Gatos. July 2021. 2040 General Plan Draft Environmental Impact Report. Los Gatos, CA. —. June 2022a. 2040 General Plan Final Environmental Impact Report SCH#2020070175.

Los Gatos, CA.
https://losgatos2040.com/images/docs/5_LG_2040_GP_FEIR_RTC_June_2022.pdf —. June 2022b. Town of Los Gatos California 2040 General Plan. Los Gatos, CA. http://losgatos2040.com/documents.html
—. June 2022. Los Gatos Municipal Code.
https://library.municode.com/ca/los_gatos/codes/code_of_ordinances?nodeId=THC

OTOLOGACA

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Section C Evaluation of Environmental Impacts 115 EMC Planning Group Los Gatos 6th Cycle Housing Element December 22, 2022
—. October 2022c. Town of Los Gatos 6th Cycle 2023-2031 Housing Element Update – HCD Draft – Initial Review Period. https://www.losgatosca.gov/DocumentCenter/View/31815/HDCInitial-Review-Draft-SubmittalWildfire CalFire. “FHSZ Viewer.” Accessed on October 24, 2022. https://egis.fire.ca.gov/FHSZ/ Town of Los Gatos. July 2021. 2040 General Plan Draft Environmental Impact Report. Los Gatos, CA. —. June 2022a. 2040 General Plan Final Environmental Impact Report SCH#2020070175.

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From: < >
Sent: Thursday, January 26, 2023 10:57 AM
To: Janette Judd <[email protected]>; Town Manager <[email protected]>; Wendy Wood <[email protected]>; Matthew Hudes <[email protected]>; Rob Rennie <[email protected]>; Mary Badame <[email protected]>; Rob Moore < >; Maria Ristow <[email protected]>; Joel Paulson <[email protected]>
Subject: For Council Meeting 1-30-23 Re: Housing Element Honorable: Mayor Maria Ristow, Vice-Chair Badame, Councilmembers and Staff.

Re: Housing Element Advisory Board
Attached is a copy of the 3/22/22 letter from our attorney with our recommendations sent to the Housing Element Advisory Board. Our recommendation to complete the HE so as to not be up against the wall on the 31st, was rejected. Briefly, the letter follows the path as listed below for those who may not have had the time to read the letter back in March. As you are now approaching the final deadline, in all sincerity, we wish you the best of luck. We realize that there were at least two if not more paths you could have taken. In the end, we all love the Town and want the Town to continue to move forward. We also acknowledge all of the time and hard work you have put into this document by all parties.

Comments Regarding Proposed 2040 General Plan

1. Background

2. The Town Should Focus First On Updating Its Housing Element, Which Will Guide And Shape Any Other Updates To The General Plan

3. When Resumed, the Proposed Plan Should Be Modified to Reflect the Housing Element Update and Other Changes.

A. Restore Existing Low Density Residential Development Standards B. Add Low-Medium Density Residential in Appropriate Locations C. Amend Permitted Intensities Allowed in Central Business District D. Make Other Changes As Needed to Accommodate The Town’s Assigned RHNA
Los Gatos Community Alliance
Facts Matter; Transparency Matters; Honesty Matters
www.lgca.town
ATTACHMENT 13

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Matthew D. Francois
Direct Dial: (650) 798-5669
E-mail: [email protected]
March 22, 2022
R u ta n & T uck e r, L L P | 4 5 5 Ma rk e t S tre e t, S u i te 1 8 7 0 S a n F ra n ci sc o , C A 9 4 1 05 | 6 5 0 -263 -7 9 0 0 | F a x 6 5 0 -263 -7 901 Ora n g e C o un t y | P a l o A lto | S a n F ra n c i s c o | www.ru ta n .c o m 2696/037011-0001
17552494.5 a03/22/22
VIA E-MAIL [[email protected]]
Honorable Melanie Hanssen, Chair
and Members of the Planning Commission
Town of Los Gatos
110 E. Main St.

Los Gatos, CA 95030
Re: Comments Regarding Proposed 2040 General Plan
Dear Chair Hanssen and Members of the Planning Commission:

We write on behalf of the Los Gatos Community Alliance (“LGCA”), a group of concerned citizens, in regard to the Proposed 2040 General Plan (the “Proposed Plan”). 1 In previous
correspondence to the Town of Los Gatos (the “Town”), LGCA expressed its significant concerns with the Proposed Plan’s major upzoning of every residential and commercial land use district in the Town, potentially resulting in up to 75,000 new housing units and 45 million square feet of new commercial development.
2 We pointed out how such intensification violated the California Environmental Quality Act (“CEQA”) as it was not studied in the environmental impact report (“EIR”) prepared by the Town for the Proposed Plan. We also explained that such intensification was entirely unnecessary to accommodate the 1,993 additional housing units needed per the Town’s Regional Housing Needs Allocation (“RHNA”).

By January 2023, the Town Council must adopt a Housing Element which includes an inventory of sites suitable and available for residential development to meet the Town’s RHNA.

Given the pending statutory deadline and in light of LGCA’s substantial concerns with the Proposed Plan, the Town should focus first on updating its Housing Element. The housing sites inventory will provide critical information to determine what area(s) of the Town, if any, need to be re-designated in the General Plan to meet the RHNA. Updating the General Plan prior to and apart from updating the Housing Element is tantamount to putting the cart before the horse.

1 Members and/or supporters of LGCA include: former Mayor Joanne Benjamin, former Mayor Sandy Decker, former Mayor Tom Ferrito, former Mayor Steve Rice, former Mayor Barbara Spector, former County Superintendent of Schools Colleen Wilcox, Tim Lundell, Phil Koen, Don Livinghouse, Sandra Livinghouse, Lee Fagot, Ann Ravel, Rob Stump, Rick Van Hoesen, and Jak Vannada.
2 See September 13, 2021 and January 5, 2022 letters from Matthew Francois to Jennifer Armer.

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1. Background.

In terms of background, the current 2020 General Plan planned for 1,600 additional units to be constructed between 2009 and 2020. The majority of these units—some 1,423 units—were projected to be developed on the Housing Element opportunity sites and the North Forty Specific Plan area. We understand that of the 1,600 additional units projected, only approximately 500 have been built thus far. This leaves capacity for approximately 1,100 additional units with no changes whatsoever to existing residential densities.

When the Town began the process of updating the 2020 General Plan, Staff acknowledged that “the existing General Plan is serving the community well,” and that the Proposed Plan “provides the opportunity to refine the General Plan, address emerging trends and recent State laws, and consider new issues.” (Staff Report to the Town Council, November 17, 2020, p. 5; see also General Plan Update, September 2019 [further noting that the General Plan update effort was “intended to be a fine-tuning of the existing General Plan, rather than a comprehensive overhaul of the document.”].)
A December 2019 Land Use Alternatives Report prepared by Town Staff presented four growth alternatives (labeled A-D) with net new housing ranging from 1,156 to 3,176 units. 3 At its
April 7, 2020 meeting, the Town Council approved Land Use Alternative C. That alternative called for 2,303 additional housing units. At the November 17, 2020 Town Council meeting, Councilmembers indicated that new housing should be focused in Community Place Districts without increasing the allowed densities in Low Density Residential areas or changing the Downtown/Central Business District.

The Draft EIR (“DEIR”) for the Proposed Plan states that one of the Proposed Plan’s “central objectives” is to achieve the RHNA figure assigned to the Town. (DEIR, pp. 2-7, 6-1.) The RHNA figure assigned to the Town is 1,993 units. Yet, the DEIR then proceeds to analyze 3,738 dwelling units—nearly double the assumed RHNA figure. In reality, the Proposed Plan, with its increased densities across almost all land use designations, could enable development of tens of thousands of new housing units. This growth was not acknowledged let alone factored into the DEIR, as legally required.

In its December 2, 2021 report to the Town Council on the Proposed Plan, Staff noted that the Planning Commission had the authority to recommend a lower housing number than that studied and assumed in the DEIR, with commensurate changes to the Proposed Plan. Staff also indicated that the report to the Planning Commission would include an option for approximately 2,000 units with associated modifications needed to the Proposed Plan to achieve this lower housing capacity.

3 The Land Use Alternatives report also identified the range of likely market demand for new housing between 2020 and 2040 to be approximately 1,500-2,000 dwelling units.

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Honorable Melanie Hanssen, Chair and
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In December 2021, the Association of Bay Area Governments (“ABAG”) approved its final RHNA Plan for Bay Area cities. Under that Plan, the Town will need to identify housing sites for 1,993 units. As is typical, the Town’s allocation is separated into four income categories: Very Low:
537 units, Low: 310 units, Moderate: 320 units, and Above Moderate: 826 units. ABAG’s RHNA Plan was approved by the State Department of Housing & Community Development (“HCD”) on January 12, 2022.

2. The Town Should Focus First On Updating Its Housing Element, Which Will Guide And Shape Any Other Updates To The General Plan.

Unlike the General Plan update, the Town is under a statutory deadline to submit the updated Housing Element to HCD by January 2023. On June 15, 2021, the Town Council retained EMC Planning Group to prepare the Housing Element update. In its Scope of Services, EMC states that it will rely on the Town Council’s Preferred Land Use Alternative C, which proposes residential development of 2,303 additional units to be located primarily in Community Place Districts.

By law, the Housing Element update must include an inventory of land suitable and available for residential development to meet the Town’s regional housing need by income level. (Gov. Code §§ 65583, 65583.2.) “Suitable” means the parcel is zoned appropriately for residential development and has available infrastructure and is not environmentally constrained. (Id.) “Available” means that the site has a likelihood for development during the Housing Element planning period. (Id.) If the housing sites inventory demonstrates that there are insufficient sites to accommodate the housing allocation for each income category, the inventory must identify potential sites for rezoning and a program to effectuate such rezoning early in the 2023-2031 planning period. Per the schedule included in its Scope of Services, EMC stated that the housing sites inventory would be completed by Winter 2021-2022.

The Town must update the Housing Element by January 31, 2023 and submit it to HCD for certification. If the Town does not secure HCD certification of its Housing Element within that required timeframe, it could become ineligible for state and regional funding programs, be placed on an accelerated Housing Element cycle, and/or face legal challenges. (Gov. Code §§ 65585, 65588, and 65889.11.)
The Town’s website devoted to the Housing Element update refers simply to the formation of the Housing Element Advisory Board, with no documents, information on meetings, or updates concerning a critical statutory deadline that is less than 12 months away.4 Other Bay Area cities have been laser-focused on updating their Housing Elements. For instance, since May 2021, the City of Palo Alto held over a dozen meetings on its Housing Element update, and the Palo Alto City Council recently provided feedback on the housing sites inventory.

4 https://www.losgatosca.gov/2711/Housing-Element-Advisory-Board

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Honorable Melanie Hanssen, Chair and
Members of the Planning Commission
March 22, 2022

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The Town should follow both common sense and the lead of other cities and focus now on updating its Housing Element. Doing so will guide and provide critical information for the Proposed Plan. Updating the General Plan prior to and apart from updating the Housing Element is tantamount to putting the cart before the horse.

3. When Resumed, the Proposed Plan Should Be Modified to Reflect the Housing Element Update and Other Changes.

Once the Housing Element update has been adopted by the Town Council and certified by the State, the Proposed Plan should be updated to reflect it. Other recommended changes to the Proposed Plan are detailed below.

A. Restore Existing Low Density Residential Development Standards.

For lands designated Low Density Residential, the current General Plan allows for singlefamily development at densities of up to 5 units per acre. The Proposed Plan would more than double the permitted densities, allowing for development of up to 12 units per acre. No change in land use designation or densities should be made to the Low Density Residential land use category.

First, no such changes are needed to meet the Town’s RHNA figure. Higher density development is already provided for in other areas, such as Community Place Districts. Further, the densities proposed in Low Density Residential areas (up to 12 units per acre) would not count toward the Town’s fair share of affordable housing. (Gov. Code § 65583.2(c)(3)(B) [requiring densities of at least 20 units per acre to be deemed appropriate to accommodate housing for lower income households].)
Second, state law has already added density to low density residential areas. Senate Bill 9, which took effect on January 1, 2022, allows for up to four units per single family residential lot.

The Town has enacted an urgency ordinance to implement Senate Bill 9. Adding further density to single-family neighborhoods would not be appropriate as such areas are generally not in close proximity to public transit, employment, or commercial services. Local upzoning on top of state upzoning would also be contrary to policies in the Proposed Plan that emphasize maintaining and enhancing a sense of place in residential neighborhoods and requiring new construction to be compatible with existing neighborhoods. (See, e.g., Proposed Plan, Goals LU-5 and LU-17 and Policies LU-2.1, LU-4.1, and LU-5.8.)

Third, given the relatively high land costs, much higher development densities are required to achieve the unit development economics to incentivize the production of duplexes and triplexes.

The desired development would not likely ever materialize given the high land cost. The resulting housing would instead likely consist of denser, single-family detached housing that is market rate and not affordable.

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Honorable Melanie Hanssen, Chair and
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B. Add Low-Medium Density Residential in Appropriate Locations.

The Proposed Plan contains policies that encourage development of “missing middle” housing. (Cf. Proposed Plan, Policies LU-1.2, LU-3.5, and LU-5.1; see also Proposed Plan, pp. 3-5 to 3-6.) The Proposed Plan describes missing middle housing as “multiple units on a single parcel (whether attached or detached) that are compatible in scale and form with detached single-family homes.” (Proposed Plan, p. 3-3.) The plan goes on to state that common missing middle housing types include, among others, duplexes, triplexes, and townhomes. (Id.) To encourage the development of this type of housing, the Town should establish a new Low-Medium Density Residential land use category that allows for the development of duplexes and triplexes at a density range of between 6 and 13 dwelling units per acre. The City of Campbell has a similar land use designation in its General Plan, which it describes as consisting generally of duplexes, small apartment buildings, and small lot, single-family detached homes. This new land use designation would be between Low Density Residential, designed for single-family residential development, and Medium Density Residential, designed for multiple-family residential development. Staff could identify appropriate sites in Community Place Districts for this new land use designation.

C. Amend Permitted Intensities Allowed in Central Business District.

As currently written, the Proposed Plan would change the permitted floor area ratio (“FAR”) in the Central Business District (“CBD”) from 0.6 to 2.0 and allow for residential densities of 20-30 units per acre. This change would increase allowed intensities in Los Gatos’s unique and charming Downtown by over 200 percent. Such a change would conflict with policies emphasizing the smallscale retail development envisioned in the CBD district that is consistent with the Town’s identity, character, and style. (Cf. Proposed Plan, Policies LU-8.2, LU-8.3, LU-9.1, and LU-9.4.) Such high density development could threaten the commercial viability of the Downtown area.

The City of Campbell limits FAR in its Central Commercial (“CC”) district to 1.25. Similar to Los Gatos’s CBD district, Campbell’s CC district is intended to promote retail commercial uses on the ground floor with office or other uses on upper floors. The Town should likewise limit FAR in the CBD to 1.25.

D. Make Other Changes As Needed to Accommodate The Town’s Assigned RHNA.

In addition to the above changes, the Town should modify land use designations and densities so that build-out under the Proposed Plan would accommodate no more than approximately 2,300 units. This figure reflects the Town’s RHNA of 1,993 units, plus a 15 percent buffer. It also reflects the economic demand and the City Council’s preferred land use alternative. By proceeding with

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Honorable Melanie Hanssen, Chair and
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this reasonable growth figure, the Town could ensure that development is phased and does not outpace necessary infrastructure and service improvements.

The current Proposed Plan allows for the development potential of nearly 75,000 housing units at maximum allowable densities. There is no need to maximize densities in each and every residential and commercial land use category to achieve the Town’s RHNA and doing so would fundamentally change the nature and character of the entire Town. This underscores why the Housing Element update and its critical housing sites inventory should precede any further work on the Proposed Plan.
********************
We respectfully ask the Town to focus first on the Housing Element update prior to considering the Proposed Plan or any other General Plan update. The Housing Element update will provide critical information on what area(s), if any, need to be re-designated in the General Plan to accommodate the Town’s projected housing growth. Once the Housing Element update has been finalized, the Proposed Plan should be revised to reflect it as well as the other recommended changes detailed above.

Thank you for your consideration of LGCA’s views on these important matters. Please do not hesitate to contact the undersigned with any questions concerning this correspondence.

Very truly yours,

RUTAN & TUCKER, LLP
Matthew D. Francois
cc (via e-mail):

Honorable Rob Rennie, Mayor, and Members of the Town Council Laurel Prevetti, Town Manager
Joel Paulson, Community Development Director
Robert Schultz, Town Attorney

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PREPARED BY: Erin Walters and Jocelyn Shoopman
Associate Planner and Associate Planner
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and the Community Development Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 01/30/2023
ITEM NO: 1

DESK ITEM
DATE: January 30, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Consider the Adoption of the Los Gatos 2023-2031 Housing Element. An Environmental Analysis Based on the Previously Certified 2040 General Plan Final Environmental Impact Report has been Prepared for the Los Gatos 2023-2031 Housing Element. Location: Town-wide. Applicant:

Town of Los Gatos. General Plan Amendment Application GP-22-003.

REMARKS:

In response to a request of a Council Member, Attachments 14 and 15 show track changes for Appendix D, Sites Inventory Analysis, and Appendix H, Sites Inventory Form. Attachment 15 is a condensed version of the Sites Inventory Form for more legible viewing. These are the changes made to the version submitted to the California Department of Housing and Community Development (HCD) on October 14, 2022, in response to the direction from Town Council on December 20, 2022, to use minimum density in the Sites Inventory. These changes are part of the Housing Element included as Exhibit 1 to the Draft Ordinance.

In response to a Council Member’s questions about the difference between the total number of sites included in the October draft and the total number of sites included in the current draft (when utilizing density versus minimum density), staff has provided the following response in italics:

Using typical density, the Sites Inventory submitted to HCD in October 2022 had 46 sites with a total capacity of 2,371 units (Site Inventory + Pipeline, ADU and SB 9 projections).

This included a 19 percent buffer.

The revised Sites Inventory utilizing minimum density has 48 sites (two new sites are 15495 Los Gatos Blvd. and 15445 Los Gatos Blvd.) with a total capacity of 2,312 units (Site Inventory + Pipeline, ADU, and SB 9 projections). This includes a 16 percent buffer.

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PAGE 2 OF 2
SUBJECT: Adoption of the Los Gatos 2023-2031 Housing Element/GP-22-003 DATE: January 30, 2023
REMARKS (continued):

It was brought to staff’s attention that two rows were not included in Appendix H and the corrected version has been included as Attachment 15 and as Exhibit 1 to Attachment 16.

The Town Attorney has provided a revised Draft Resolution (Attachment 16).

Attachment 17 includes additional public comments received between 11:01 a.m., Thursday, January 26, 2023, and 11:00 a.m., Monday, January 30, 2023.

ATTACHMENTS:

Previously received:

1. Draft 2023-2031 Housing Element

2. Environmental Analysis

3. Revised Appendix D, Sites Inventory Analysis

4. Revised Appendix H, Sites Inventory Form
Previously received with the January 30, 2023, Staff Report:

5. December 20, 2022, Town Council Minutes

6. January 11, 2023, Planning Commission Staff Report with Exhibits 1-5

7. January 11, 2023, Planning Commission Addendum Report with Exhibit 6

8. January 11, 2023, Planning Commission Verbatim Minutes

9. January 12, 2023, HCD’s Findings Comment Letter

10. Public Comments Received by HCD

11. Revised Housing Element Update Process Timeline

12. Draft Resolution with Exhibits 1 and 2

13. Public Comment received between 11:01 a.m., Tuesday, December 20, 2022, and 11:00 a.m., Thursday, January 26, 2023
Received with this Desk Item:

14. Revised Appendix D, Sites Inventory Analysis – Showing Track Changes

15. Revised Appendix H, Sites Inventory Form – Showing Track Changes

16. Revised Draft Resolution with Exhibits 1 and 2

17. Public comments received between 11:01 a.m., Thursday, January 26, 2023, and 11:00 a.m., Monday, January 30, 2023.

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Site Inventory Analysis D

APPENDIX
A
ATTACHMENT 14

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Appendix D. Site Inventory Analysis
October 2022 Appendix D D-1
D.1 Vacant and Available Sites
The Plan Bay Area 2050 Final Blueprint1 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, the Department of Housing and Community Development (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 low-income households to market rate housing. This calculation, known as the Regional Housing Needs Allocation (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. The 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 areas. The 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.

D.2 Regional Housing Needs Allocation
In December 2021, ABAG adopted a Final Regional Housing Needs Allocation (RHNA) Methodology. For Los Gatos, the RHNA required to be planned for the 6th cycle Housing Element Update is 1,993 units, an increase of 322 percent from the last cycle.

RHNA Summary
Los Gatos’ share of the regional housing need for the eight-year period from 2023 to 2031 is 1,993 units, which is a 322 percent increase over the 619 units required by the 2015 to 2023 RHNA. The housing need is divided into the four income categories of housing affordability. Table D-1 shows Los Gatos’ RHNA for the planning period 2023 through 2031 in comparison to the RHNA distributions for Santa Clara County and the Bay Area region.

With an update required every eight years by the State of California, this Housing Element covers a planning period from January 31, 2023, to January 31, 2031 (also referred to as the “6th cycle”).

Table D‐1 Los Gatos’ Regional Housing Needs Allocation: 2023–2031 Income Group
Los
Gatos
Units
Percent
Santa
Clara
County
Units
Percent
Bay
Area
Units
Percent
Very Low Income (<50% of AMI) 537 26.9% 32,316 24.9% 114,442 25.9% Low Income (50%-80% of AMI) 310 15.6% 18,607 14.4% 65,892 14.9% Moderate Income (80%-120% of AMI) 320 16.1% 21,926 16.9% 72,712 16.5% Above Moderate Income (>120% of AMI) 826 41.4% 56,728 43.8% 188,130 42.6% Total 1,993 100.0% 129,577 100.0% 441,176 100.0%
Source: ABAG 2021
1 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

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HCD Draft Initial Review 2023-2031 Housing Element
D-2 Appendix D October 2022
D.3 Site Inventory
The purpose of the sites inventory is to identify and analyze specific sites that are available and suitable for residential development during the planning period between 2023-2031 in order to accommodate Los Gatos’ assigned 1,993 housing units. The Town does not build the housing but rather creates the implementation programs and policies to plan for where the housing can be located and how many units could be built on potential sites.

In 2017, Senate Bill (SB) 166 was signed into law and included new “no net loss” provisions that require communities to provide an ongoing, adequate supply of land resources for housing development during the entirety of the housing element update planning period. These provisions mean communities face risks of noncompliance should a housing site be developed with non-residential uses, lower residential densities, or residential uses at affordability levels higher than anticipated by the Housing Element. To avoid noncompliance, HCD advises communities to “buffer” their assigned RHNA numbers. The Site Inventory includes 46 48 sites in order to have enough capacity for the RHNA and recommended buffer of at least 15 percent. These sites, in addition to Accessory Dwelling Unit (ADU) Projections, Senate Bill (SB) 9 Projections, and Pipeline Projects have a total capacity of 2,3712,312 units (1,993 units plus a 19 16 percent buffer).

Overview of Selected Sites
This section provides information on the current list of potential sites that show how the Town will accommodate the State’s required minimum of 1,993 housing units. Please note that the site numbers listed here are added only as a way to reference the site and label it on a map. The site number is not an indication of preference or priority. Figure D-1 shows an overview of the potential sites inventory map developed for Los Gatos’ 6th cycle Housing Element Update. The following sites make up the Site Inventory, which is available as Appendix H.

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Appendix D. Site Inventory Analysis
October 2022 Appendix D D-1
Figure D-1 Overall Area Parcel Locations
Sites Details
This section provides information on each of the sites selected for inclusion in the site inventory of vacant and available sites.

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HCD Draft Initial Review 2023-2031 Housing Element
D-2 Appendix D October 2022
Figure D-2 Downtown Area

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Appendix D. Site Inventory Analysis
October 2022 Appendix D D-1
Site A-1 Park Avenue
Addresses: 50 Park Avenue and 61 Montebello Way
Number of Housing Units: 95
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Park Avenue Site (A-1) is located in the Downtown Area on the southwest end of Town on a wooded parcel that is currently identified as Very High Fire Risk. The site is triangular in shape with parking lots and South Santa Cruz Avenue on one side, Highway 17 on a second side, and Downtown Los Gatos forming the third side. Proximity to Downtown Los Gatos ensures that this site provides pedestrian access to urban services. This site currently is developed with residential units and is designated Medium Density Residential. The site is zoned R-1D and would allow nine five housing units developed at a minimum typical density of 10 five du/ac.

Property Owner Interest Form Submitted: Yes.

Constraints: Very high fire hazard; existing residential dwelling units would require demolition.

Figure D-3 Park Avenue (Site A-1)

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HCD Draft Initial Review 2023-2031 Housing Element
D-2 Appendix D October 2022
Site A-2 South Santa Cruz Avenue
Address: 101 South Santa Cruz Avenue
Number of Housing Units: 2116
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The South Santa Cruz Avenue Site (A-2) is located in the Downtown Area on the southwest end of Town along South Santa Cruz Avenue on an occupied commercial parcel in Downtown Los Gatos. The site is currently identified as Medium Density Residential. Proximity To Downtown Los Gatos ensures that this site provides pedestrian access to urban services. This site is designated as Central Business District and zoned C-2, which would allow 21 16 housing units developed at a typical minimum density of 26 20 du/ac.

Property Owner Interest Form Submitted: Yes.

Constraints: Very high fire hazard; the existing commercial use would require demolition.

Figure D-4 South Santa Cruz Avenue (Site A-2)
Site A-3 University Avenue
Address: 165 Los Gatos-Saratoga Road

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Appendix D. Site Inventory Analysis
October 2022 Appendix D D-1
Number of Housing Units: 107
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The University Avenue Site (A-3) is located in the Downtown Area at the corner of Los Gatos-Saratoga Road and University Avenue on an occupied commercial site. Proximity to Downtown Los Gatos ensures that this site would provide pedestrian access to urban services.

This site is designated as Central Business District and zoned C-2, which would allow 10 seven housing units developed at a minimum typical density of 26 20 du/ac.

Property Owner Interest Form Submitted: Yes.

Constraints: Existing commercial building would require demolition.

Figure D-5 University Avenue (Site A-3)

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HCD Draft Initial Review 2023-2031 Housing Element
D-2 Appendix D October 2022
Figure D-6 Los Gatos Lodge Area

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Appendix D. Site Inventory Analysis
October 2022 Appendix D D-1
Site B-1 Los Gatos Lodge
Address: 50 Los Gatos-Saratoga Road
Number of Housing Units: 317264
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Los Gatos Lodge Site (B-1) is located in the Los Gatos Lodge Area immediately adjacent to the interchange of Highway 9 and Highway 17, east of Downtown Los Gatos. The site is the current location of the Los Gatos Lodge, with the Los Gatos High School sports fields to the south, lower-density residential uses across Bella Vista Avenue to the east, and Best Western Inn across Highway 9 on the north. This site is designated as Mixed-Use Commercial and zoned CH:PD, which would allow 317 264 housing units developed at a minimum typical density of 36 30 du/ac.

Property Owner Interest Form Submitted: Yes.

Constraints: Existing commercial buildings would require demolition and removal or modification of the existing Planned Development Overlay to accommodate residential.

Figure D-7 Los Gatos Lodge (Site B-1)

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HCD Draft Initial Review 2023-2031 Housing Element
D-2 Appendix D October 2022
Figure D-8 Los Gatos Boulevard Area

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Appendix D. Site Inventory Analysis
October 2022 Appendix D D-1
Site C-1 Ace Hardware
Address: 15300 Los Gatos Boulevard
Number of Housing Units: 5848
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Ace Hardware Site (C-1) is located in the Los Gatos Boulevard Area on the east side of Los Gatos Boulevard and north of Gateway Drive. The site is the current location of Ace Hardware, with commercial uses to the north, south, and west, and lower-density residential uses to the east. The site is designated as Mixed-Use Commercial and zoned C-1, which would accommodate 58 48 housing units developed at a minimum typical density of 36 30 du/ac.

Property Owner Interest Form Submitted: Yes.

Constraints: Existing commercial building would require demolition.

Figure D-9 Ace Hardware (Site C-1)
Site C-2 Los Gatos Boulevard
Address: 15349, 15367, and 15405 Los Gatos Boulevard

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HCD Draft Initial Review 2023-2031 Housing Element
D-2 Appendix D October 2022
Number of Housing Units: 10386
“By Right” + 20% Affordable: Required – Not used in previous cycle.

Description: The Los Gatos Boulevard Site (C-2) is located in the Los Gatos Boulevard Area on the west side of Los Gatos Boulevard, and south of Garden Lane. The site is the current location of multiple commercial uses, with commercial uses to the north, south, and east, and lowerdensity residential uses to the west. The site is designated as Mixed-Use Commercial and zoned CH, which would accommodate 103 86 housing units developed at a minimum typical density of 36 30 du/ac.

Property Owner Interest Form Submitted: Yes.

Constraints: Existing commercial building would require demolition.

Figure D-10 Los Gatos Boulevard (Site C-2)

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Appendix D. Site Inventory Analysis
October 2022 Appendix D D-1
Site C-3 Los Gatos Boulevard
Address: 15425 Los Gatos Boulevard
Number of Housing Units: 3933
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Los Gatos Boulevard Site (C-3) is located in the Los Gatos Boulevard Area on the west side of Los Gatos Boulevard and east of Garden Lane. The site is the current location of office and commerical uses, with commercial uses located on all sides. The site is designated as Mixed-Use Commercial and zoned CH, which would accommodate 39 33 housing units developed at a minimum typical density of 36 30 du/ac.

Property Owner Interest Form Submitted: Yes.

Constraints: Existing commercial building would require demolition.

Figure D-11 Los Gatos Boulevard (Site C-3)

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HCD Draft Initial Review 2023-2031 Housing Element
D-2 Appendix D October 2022
Site C-4 Affordable Treasures
Address: 15795 Los Gatos Boulevard
Number of Housing Units: 2319
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Affordable Treasures Site (C-4) is located in the Los Gatos Boulevard Area at the northwest corner of Los Gatos Boulevard and Farley Lane. The site is the current location of Affordable Treasures Party Store with commercial uses located to the north, south, and east and lower-density residential uses located to the west. The site is designated as Mixed-Use Commercial and zoned CH, which would accommodate 23 19 housing units developed at a minimum typical density of 36 30 du/ac.

Property Owner Interest Form Submitted: Yes.

Constraints: Existing commercial building would require demolition.

Figure D-12 Affordable Treasures (Site C-4)

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Appendix D. Site Inventory Analysis
October 2022 Appendix D D-1
Site C-5 Los Gatos Boulevard
Address: 16203 Los Gatos Boulevard
Number of Housing Units: 2824
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Los Gatos Boulevard Site (C-5) is located in the Los Gatos Boulevard Area at the northwest corner of Los Gatos Boulevard and Roberts Road. The site is the current location of NC Boardshop skateboard shop and Autobahn Los Gatos, with commercial uses located to the north, east, and west and medium-density residential uses located to the south. The site is designated as Mixed-Use Commercial and zoned CH, which would accommodate 28 24 housing units developed at a minimum typical density of 36 30 du/ac.

Property Owner Interest Form Submitted: No; however, a Conceptual Development Advisory Committee application for a mixed-use development was submitted on November 17, 2020 pending an anticipated density increase as part of the General Plan and Housing Element Updates.

Constraints: Existing commercial buildings would require demolition.

Figure D-13 Los Gatos Boulevard (Site C-5)

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HCD Draft Initial Review 2023-2031 Housing Element
D-2 Appendix D October 2022
Site C-6 Los Gatos Boulevard
Address: 16492 Los Gatos Boulevard and Assessor Parcel Number 537-02-86 Number of Housing Units: 116
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Los Gatos Boulevard Site (C-6) is located in the Los Gatos Boulevard Area on the east side of Los Gatos Boulevard, north of Spencer Avenue. The site is the current location of LG Wines and Liquors and Happy Cleaners, with commercial uses located to the north, south, and west and low-density residential uses located to the east. The site is designated as Low Density Residential but zoned C-1, which would accommodate 11 6 housing units developed at a minimum typical density of 18 10 du/ac.

Property Owner Interest Form Submitted: Yes, and the owner has submitted written interest in changing the land use designation to Neighborhood Commercial.

Constraints: Existing commercial use building would require demolition.

Figure D-14 Los Gatos Boulevard (Site C-6)

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Appendix D. Site Inventory Analysis
October 2022 Appendix D D-1
Site C-7 Los Gatos Boulevard
Address: 15495 Los Gatos Boulevard
Number of Housing Units: 116
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Los Gatos Boulevard Site (C-7) is located in the Los Gatos Boulevard Area on the west side of Los Gatos Boulevard and east of Garden Lane. The site is comprised of three separate commercial buildings, with commercial uses located to the north, south, and east. Lowdensity residential uses are located to the west. The site is designated as Mixed- Use Commercial but zoned CH, which would accommodate 116 housing units developed at a minimum density of 30 du/ac.

Property Owner Interest Form Submitted: No; however, a property owner has contacted staff with an inquiry for residential development of the site.

Constraints: Existing commercial buildings would require demolition.

Figure D-15 Los Gatos Boulevard (Site C-7)

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HCD Draft Initial Review 2023-2031 Housing Element
D-2 Appendix D October 2022
Site C-8 Los Gatos Boulevard
Address: 15445 Los Gatos Boulevard
Number of Housing Units: 46
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Los Gatos Boulevard Site (C-8) is located in the Los Gatos Boulevard Area on the west side of Los Gatos Boulevard and east of Garden Lane. The site is the current location of Virtus Performance Club, with commercial uses located to the east and south. Low-density residential uses are located to the north and west. The site is designated as Mixed-Use Commercial but zoned CH, which would accommodate 46 housing units developed at a minimum density of 30 du/ac.

Property Owner Interest Form Submitted: No; however, the site is adjacent to other sites within the Site Inventory.

Constraints: Existing commercial building would require demolition.

Figure D-16 Los Gatos Boulevard (Site C-8)

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Appendix D. Site Inventory Analysis
October 2022 Appendix D D-1
Figure D-1715 North Forty Area

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HCD Draft Initial Review 2023-2031 Housing Element
D-2 Appendix D October 2022
Site D-1 North Forty Phase II
Address: 14859 Los Gatos Boulevard, et. al.

Number of Housing Units: 461
“By Right” + 20% Affordable: Required – Used in previous cycle.

Description: The North Forty Phase II Site (D-1) is located in the North Forty Area on the west side of Los Gatos Boulevard, south of Burton Road. The site contains existing single-family residences and agriculture uses. Commercial uses are located to the south and west and arterial highways located to the north and east. The site is designated and zoned as North Forty Specific Plan, which would accommodate 461 units at a minimum density of 30 du/ac.

Property Owner Interest Form Submitted: No; however, the property owner has been involved in attending Housing Element Advisory Board (HEAB) meetings and submitted written public comments regarding intent and interest in residential development on the site.

Constraints: Existing buildings would require demolition.

Figure D-1618 North Forty Phase II (Site D-1)

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Appendix D. Site Inventory Analysis
October 2022 Appendix D D-1
Site D-2 North Forty Phase II
Address: 16245 Burton Road
Number of Housing Units: 38
“By Right” + 20% Affordable: Required – Used in previous cycle.

Description: The North Forty Phase II Site (D-2) is located in the North Forty Area at the terminus of Burton Road, on the west side of Los Gatos Boulevard. The site is underutilized with a single-family residence. Commercial uses are located to the east and arterial highways located to the north and west. The site is designated and zoned as North Forty Specific Plan, which would accommodate 38 housing units developed at a minimum density of 30 du/ac.

Property Owner Interest Form Submitted: No; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underway.

Constraints: Existing residential building would require demolition.

Figure D-1719 North Forty Phase II (Site D-2)

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HCD Draft Initial Review 2023-2031 Housing Element
D-2 Appendix D October 2022
Site D-3 North Forty (Phase II)
Address: 16240 Burton Road
Number of Housing Units: Eight
“By Right” + 20% Affordable: Required – Used in previous cycle.

Description: The North Forty Phase II Site (D-3) is located in the North Forty Area along Burton Road and adjacent to the Highway 17/Highway 85 interchange. The site contains a single-family residence. Other North Forty Specific Plan properties surround the site. The site is designated and zoned as North Forty Specific Plan, which would accommodate eight housing units developed at a minimum density of 30 du/ac.

Property Owner Interest Form Submitted: No; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underway.

Constraints: Existing residential building would require demolition.

Figure D-1820 North Forty Phase II (Site D-3)

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Appendix D. Site Inventory Analysis
October 2022 Appendix D D-1
Site D-4 North Forty Phase II
Address: 16270 Burton Road
Number of Housing Units: 13
“By Right” + 20% Affordable: Required – Used in previous cycle.

Description: The North Forty Phase II Site (D-4) is located in the North Forty Area at the end of Burton Road and immediately adjacent to the Highway 17/Highway 85 interchange. The site contains a single-family residence. Other North Forty Specific Plan properties surround the site.

The site is designated and zoned as North Forty Specific Plan, which would accommodate 13 housing units developed at a minimum density of 30 du/ac.

Property Owner Interest Form Submitted: No; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underway.

Constraints: Existing residential building would require demolition.

Figure D-1921 North Forty Phase II (Site D-4)

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HCD Draft Initial Review 2023-2031 Housing Element
D-2 Appendix D October 2022
Site D-5 North Forty Phase II
Address: 16210 Burton Road
Number of Housing Units: 25
“By Right” + 20% Affordable: Required – Used in previous cycle.

Description: The North Forty Phase II Site (D-5) is located in the North Forty Area along Burton Road and on the west side of Los Gatos Boulevard. The site contains single-family residences.

Other North Forty Specific Plan properties surround the site. The site is designated and zoned as North Forty Specific Plan, which would accommodate 25 housing units developed at a minimum density of 30 du/ac.

Property Owner Interest Form Submitted: No; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underway.

Constraints: Existing residential building would require demolition.

Figure D-2022 North Forty Phase II (Site D-5)

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Appendix D. Site Inventory Analysis
October 2022 Appendix D D-1
Site D-6 North Forty Phase II
Address: 14849 Los Gatos Boulevard
Number of Housing Units: 28
“By Right” + 20% Affordable: Required – Used in previous cycle.

Description: The North Forty Phase II Site (D-6) is located in the North Forty Area on the west side of Los Gatos Boulevard, south of Burton Road. The site contains a single-family residence.

Other North Forty Specific Plan properties surround the site on the north, south, and west. East of the site, across Los Gatos Boulevard there are commercial uses. The site is designated and zoned as North Forty Specific Plan, which would accommodate 28 housing units developed at a minimum density of 30 du/ac.

Property Owner Interest Form Submitted: No; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underway.

Constraints: Existing residential building would require demolition.

Figure D-2123 North Forty Phase II (Site D-6)

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HCD Draft Initial Review 2023-2031 Housing Element
D-2 Appendix D October 2022
Site D-7 North Forty Phase II
Address: 14823 Los Gatos Boulevard
Number of Housing Units: 11
“By Right” + 20% Affordable: Required – Used in previous cycle.

Description: The North Forty Phase II Site (D-7) is located in the North Forty Area at the southwest corner of Burton Road and Los Gatos Boulevard. The site contains a single-family residence. Other North Forty Specific Plan properties surround the site on the south and west.

North of the site, across Burton Road, and east of the site, across Los Gatos Boulevard, there are commercial uses. The site is designated and zoned as North Forty Specific Plan, which would accommodate 11 housing units developed at a minimum density of 30 du/ac.

Property Owner Interest Form Submitted: No; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underway.

Constraints: Existing residential building would require demolition.

Figure D-2224 North Forty Phase II (Site D-7)

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Appendix D. Site Inventory Analysis
October 2022 Appendix D D-1
Figure D-2325 Lark Avenue Area

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HCD Draft Initial Review 2023-2031 Housing Element
D-2 Appendix D October 2022
Site E-1 Oka Road
Address: Oka Road
Number of Housing Units: 151124
“By Right” + 20% Affordable: Required – Used in previous cycle.

Description: The Oka Road Site (E-1) is located in the Lark Avenue Area on the east side of Oka Road, north of Lark Avenue. The site contains residential and agricultural uses. Major arterial highways are located north and east of the site, with the Los Gatos Swim and Racquet Club immediately north. Agricultural and commercial uses are located across Oka Road. The site is designated as Low-Density Residential and Medium-Density Residential. Parcels within the site are zoned R-1-8 and R-M:5-12, which would allow 151 124 housing units developed at a typical density of four du/ac for parcels designated as Low-Density Residential and at a typical minimum density of 18 14 du/ac for parcels designated as Medium-Density Residential.

Property Owner Interest Form Submitted: No; however the property owner has submitted a public comment to the HEAB regarding future development of the site.

Constraints: Existing buildings would require demolition.

Figure D-2426 Lark Avenue (Site E-1)

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Appendix D. Site Inventory Analysis
October 2022 Appendix D D-1
Site E-2 Oka Lane
Address: Oka Lane
Number of Housing Units: 26
“By Right” + 20% Affordable: Required – Used in previous cycle.

Description: The Oka Lane Site (E-2) is located in the Lark Avenue Area on the west side of Oka Road, north of Lark Avenue. The site contains agricultural uses. Major arterial highways are located north and east of the site, with the Bonnie View mobile home park to the north.

Agricultural and commercial uses are located across Oka Road. The site is designated as LowDensity Residential. The site is zoned R-1:8, which would allow 26 housing units developed at a typical density of 4 du/ac.

Property Owner Interest Form Submitted: No; however the property owner has submitted a public comment to the HEAB regarding future development of the site.

Constraints: Proximity to adjacent highways.

Figure D-2527 Oka Lane (Site E-2)

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HCD Draft Initial Review 2023-2031 Housing Element
D-2 Appendix D October 2022
Site E-3 Caltrans Right of Way
Address: Caltrans Right of Way
Number of Housing Units: 8869
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Caltrans Right of Way Site (E-3) is located in the Lark Avenue Area south and west of the Highway 17/Highway 85 interchange. The site is currently vacant. Major arterial highways are located north and east of the site. Commercial uses are located west of the site across Oka Road, and the Bonnie View mobile home park is located immediately south of the site. Should the site be annexed by the Town, it is designated as Medium-Density Residential and zoned as R-M:5-12, which would accommodate 88 69 housing units developed at a minimum typical density of 18 14 du/ac.

Property Owner Interest Form Submitted: No, the Town has yet to reach out to Caltrans regarding future development of the site.

Constraints: Consultation with Caltrans for future development.

Figure D-2628 Caltrans Right of Way (Site E-3)

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Appendix D. Site Inventory Analysis
October 2022 Appendix D D-1
Figure D-2729 Winchester Boulevard Area

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HCD Draft Initial Review 2023-2031 Housing Element
D-2 Appendix D October 2022
Site F-1 Knowles Drive
Address: 110 Knowles Drive
Number of Housing Units: 264220
“By Right” + 20% Affordable: Required – Used in previous cycle.

Description: The Knowles Drive Site (F-1) is located in the Winchester Boulevard Area north and west of the Highway 17/Highway 85 interchange. The site contains industrial uses. Los Gatos Creek is immediately south and east of the site, with low-density residential uses located beyond.

High-density residential uses are located south and west of the site. Commercial/industrial uses are located north of the site across Knowles Drive. The site is designated as High-Density Residential and zoned CM:AHOZ, which would accommodate 264 220 housing units developed at a typical minimum density of 36 30 du/ac.

Property Owner Interest Form Submitted: No; however the site is located within the Affordable Housing Overlay Zone.

Constraints: Existing buildings would require demolition and adjacency to the Los Gatos Creek Trail.

Figure D-2830 Knowles Drive (Site F-1)

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Appendix D. Site Inventory Analysis
October 2022 Appendix D D-1
Site F-2 Winchester Boulevard
Address: 206 Knowles Drive
Number of Housing Units: 8772
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Winchester Boulevard Site (F-2) is located in the Winchester Boulevard Area at the northeast intersection of A Street and Knowles Drive. The site contains office uses. Multifamily residential is located to the south and office uses are located to the north, south, and west of the site. The site is designated as High-Density Residential and zoned CM, which would accommodate 87 72 housing units developed at a minimum typical density of 36 30 du/ac.

Property Owner Interest Form Submitted: No; however, the site is located immediately adjacent to 110 Knowles Drive (Site F-1), which has an Affordable Housing Overlay Zone.

Constraints: Existing buildings would require demolition and adjacency to the Los Gatos Creek Trail.

Figure D-2931 Winchester Boulevard (Site F-2)

Page 638 ends

HCD Draft Initial Review 2023-2031 Housing Element
D-2 Appendix D October 2022
Figure D-3032 Union Avenue Area

Page 639 ends

Appendix D. Site Inventory Analysis
October 2022 Appendix D D-1
Site G-1 Los Gatos-Almaden Road
Address: 440 Los Gatos Almaden Road
Number of Housing Units: 148
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Los Gatos-Almaden Road Site (G-1) is located in the Union Avenue Area at the northwest corner of Leigh Avenue and Los Gatos-Almaden Road. The site contains a gas station and commercial building. Low-density residential are located north, south, and west of the site.

Leigh High School is located east of the site across Leigh Avenue. The site is designated as Neighborhood Commercial and zoned C-1, which would accommodate 14 8 housing units developed at a minimum typical density of 18 10du/ac.

Property Owner Interest Form Submitted: Yes
Constraints: Existing gas station and commercial building would require demolition.

Figure D-3133 Los Gatos-Almaden Road (Site G-1)

Page 640 ends

HCD Draft Initial Review 2023-2031 Housing Element
D-2 Appendix D October 2022
Figure D-3234 Harwood Road Area

Page 641 ends

Appendix D. Site Inventory Analysis
October 2022 Appendix D D-1
Site H-1 Valero
Address: 14000 Blossom Hill Road
Number of Housing Units: 127
“By Right” + 20% Affordable: Not Required – Not used in previous cycle Property Owner Interest Form Submitted:

Description: The Valero Site (H-1) is located in the Harwood Road Area at the southwest corner of Blossom Hill Road and Harwood Road. The site contains a gas station. Low-density residential are located north, south, and east of the site. Commercial uses are located immediately west of the site. The site is designated as Neighborhood Commercial and zoned C1, which would accommodate 12 7 housing units developed at a minimum typical density of 18 10 du/ac.

Property Owner Interest Form Submitted: Yes.

Constraints: Existing gas station and commercial building would require demolition.

Figure D-3335 Valero (Site H-1)

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HCD Draft Initial Review 2023-2031 Housing Element
D-2 Appendix D October 2022
Figure D-3436 Alberto Way Area

Page 643 ends

Appendix D. Site Inventory Analysis
October 2022 Appendix D D-1
Site I-1 Alberto Way
Address: 401-409 Alberto Way
Number of Housing Units: 5460
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Alberto Way Site (I-1) is located in the Alberto Way Area, located at the intersection of Alberto Way and Los Gatos-Saratoga Road. The site is currently vacant. Multifamily residential are located north and east of the site. Commercial uses are located immediately south and east of the site with Highway 17 to the west. The site is designated as Mixed Use Commercial and zoned CH, which would accommodate 54 60 housing units developed at a density of 25 27 du/ac based on a preliminary application received by the Town that is under review.based on a Conceptual Development Advisory Committee application submitted by the property owner on September 21, 2022.

Property Owner Interest Form Submitted: Yes.

Constraints: Proximity to adjacent Highway 17 onramp.

Figure D-3537 Alberto Way (Site I-1)

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HCD Draft Initial Review 2023-2031 Housing Element
D-2 Appendix D October 2022
Accessory Dwelling Unit (ADUs and Junior ADUs) Projections Address: Various Locations
Number of Housing Units: 200
“By Right” + 20% Affordable: Not required, instead a formula exists for projecting the next eight-year cycle, along with assumptions of 30 percent very-low income units, 30 percent low income units, 30 percent moderate income units, and 10 percent above moderate categories.

Description: Accessory dwelling units according to ADU Ordinance.

Constraints: To have HCD consider 200 units as a reasonable expectation for construction in this eight-year cycle, the Town is reliant upon the averaging of previous ADU permit submittals.

Senate Bill 9 (SB 9) Projections
Address: Various Locations
Minimum Number of Housing Units: 96
“By Right” + 20% Affordable: Not required – Instead, formula exists for projecting the next eight-year cycle.

Description: New housing units generated from the SB 9 Ordinance.

Constraints: To have HCD consider SB 9 units as a reasonable expectation for construction in this eight-year cycle, the Town is reliant upon the averaging of previous SB 9 permit submittals.

Pipeline Projects
Address: Addresses listed below:
105 Newell Avenue – net four units
20101 Foster Road – net one unit
North Forty Phase I – net 14 units
465 North Santa Cruz Avenue – net one unit
16195 George Street – net three units
144 Wood Road – net one unit
16100 Greenridge Terrace – net seven units
15215 Shannon Road – net four units
17200 Los Robles – net two units
400 Surmont Drive – net two units
14915 Shannon Road – net 10 units
16220 Hardwood – net two units
14926 Los Gatos Boulevard – net five units
15415 National Avenue – net one unit
45 Reservoir Road – net one unit
200 Happy Acres – net one unit
15343 Santella Court – net one units
15415 Santella Court – net one unit
15365 Santella Court – net one unit
15860 Winchester Boulevard – net 113 units
120 Oak Meadow Drive – net one unit
Number of Housing Units: 176
“By Right” + 20% Affordable: Not required
Description: New housing units generated from projects with Planning entitlements and Planning applications currently under Town review.

Constraints: None

Page 645 ends

Appendix D. Site Inventory Analysis
October 2022 Appendix D D-1
Inventory of Vacant and Available Sites
This section provides the formal inventory of sites that the Town of Los Gatos will rely on in the 6th Housing Element planning cycle. Per State law and Housing Policy, the Town is required to maintain “no net loss” of the housing capacity represented by this list of parcels and the sites they comprise. To facilitate this, the inventory presented in Appendix H has been designed with excess capacity. This allows some degree of flexibility in decision making for individual development projects as they come forward for approval.

In short, with some limited flexibility, the Town is committed to permitting housing on each of the parcels listed in the table below, and in so doing ensuring that the number of units listed for each parcel in the table "planned capacity” is achieved. Should the Town approve development that is inconsistent with the parcel’s planned capacity, it is then required as part of that approval to:

1. Find, based on quantitative evidence, that the remaining inventory of housing sites is still sufficient to meet the Town’s 6th cycle RHNA; or

2. Identify one or more available sites with the realistic development capacity to replace the housing that would have otherwise been developed had consistency with planned capacity been achieved.

Appendix H provides details and capacity estimates for each of the parcels that comprise the Site Inventory as identified in the section above.

D. 4 Summary and Conclusions
The sites identified in this report are sufficient to accommodate Los Gatos’ Regional Housing Needs Allocation for the 6th cycle planning period. This number accommodates a buffer of approximately 19 16 percent above RHNA, which would equal capacity of approximately 378 319 additional units. These sites, in addition to Accessory Dwelling Units Projections, Senate Bill 9 Projections, and Pipeline Projects have a total capacity of 2,3712,312 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 by other communities and undevelopable hillsides, 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 build new housing on redeveloped sites. Property owner interest will be pivotal for facilitating single-family site opportunities to add housing through construction of ADUs and use of SB 9 processes, which allow for up to four units on a property zoned for a single house

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Please Start Here, Instructions in Cell A2, Table in
A3:B17 Form Fields
Site Inventory Forms must be submitted to HCD for a
housing element or amendment adopted on or after
January 1, 2021. The following form is to be used for
satisfying this requirement. To submit the form,
complete the Excel spreadsheet and submit to HCD at
[email protected]. Please send the Excel
workbook, not a scanned or PDF copy of the tables.

General Information
Jurisdiction Name LOS GATOS
Housing Element Cycle 6th
Contact Information
First Name Joel
Last Name Paulson
Title Community Development Director
Email [email protected]
Phone 4083546879
Mailing Address
Street Address 110 East Main Street
City Los Gatos
Zip Code 94538
Website
https://www.losgatosca.gov/897/Planning
ATTACHMENT 15 Page 647
Table A: Housing Element Sites Inventory
Site Address/Intersection General Plan
Designation (Current)
Zoning
Desig.
(Current)
Min. Density
Allowed
(units/acre)
Max.

Density
Allowed
(units/acre)
Parcel
Size
(Acres)
Existing
Use/
Vacancy
Lower
Income
Capacity
Moderate
Income
Capacity
Above
Moderate
Income
Capacity
Total
Capacity
50 Park Ave. Medium Density Resid. R-1D 5 12 0.18 Resid. 0 0 2 1 2 1 61 Montebello Way Medium Density Resid. R-1D 5 12 0.69 Resid. 0 0 7 4 7 4 101 S. Santa Cruz Ave. Central Business Dist. C-2 20 30 0.8 Comm. 0 0 21 16 21 16 165 Los Gatos Saratoga Rd. Central Business Dist. C-2 20 30 0.37 Comm. 0 0 10 7 10 7 50 Los Gatos Saratoga Rd. Mixed Use Comm. CH:PD 30 40 7.04 Hotel/motel 151 51 51 9 253 211 Los Gatos Saratoga Rd. Mixed Use Comm. CH:PD 30 40 1.49 Hotel/motel 27 18 11 9 16 18 54 45 Los Gatos Saratoga Rd. Mixed Use Comm. CH:PD 30 40 0.28 Hotel/motel 5 3 2 3 10 8 15300 Los Gatos Blvd. Mixed Use Comm. C-1 30 40 1.6 Comm. 40 33 11 9 7 6 58 48 15349 Los Gatos Blvd. Mixed Use Comm. CH 30 40 0.34 Comm. 8 7 2 2 1 12 10 Los Gatos Blvd. Mixed Use Comm. CH 30 40 1.2 Comm. 30 26 9 8 4 2 43 36 Los Gatos Blvd. Mixed Use Comm. CH 30 40 1.34 Comm. 34 28 10 8 4 48 40 15425 Los Gatos Blvd. Mixed Use Comm. CH 30 40 1.09 Comm. 27 23 8 7 4 3 39 33 15975 Los Gatos Blvd. Mixed Use Comm. CH 30 40 0.64 Comm. 16 13 5 4 2 23 19 16203 Los Gatos Blvd. Mixed Use Comm. CH 30 40 0.79 Comm. 20 17 6 5 2 28 24 16492 Los Gatos Blvd. Low Density Resid. C-1 10 20 0.23 Comm. 0 0 4 2 4 2 Los Gatos Blvd. Low Density Resid. C-1 10 20 0.38 Vacant 0 0 7 4 7 4 15495 Los Gatos Blvd. Mixed Use Comm. CH 30 40 3.85 Comm. 81 23 12 116 15445 Los Gatos Blvd. Mixed Use Comm. CH 30 40 1.53 Comm. 32 9 5 46 14859 Los Gatos Blvd. N40 SP N40 SP 30 30 2.9 Resid. 57 13 17 87 16392 Los Gatos Blvd. N40 SP N40 SP 30 30 0.78 Vacant 15 3 5 23 16260 Burton Rd. N40 SP N40 SP 30 30 0.44 Resid. 8 2 3 13 16250 Burton Rd. N40 SP N40 SP 30 30 0.44 Resid. 8 2 3 13 14917 Los Gatos Blvd. N40 SP N40 SP 30 30 3.74 Resid. 73 17 22 112 14925 Los Gatos Blvd. N40 SP N40 SP 30 30 6.07 Resid. 118 27 37 182 Los Gatos Boulevard N40 SP N40 SP 30 30 1.02 Vacant 20 5 6 31 16245 Burton Rd. N40 SP N40 SP 30 30 1.17 Resid. 23 5 7 35 Burton Rd. N40 SP N40 SP 30 30 0.11 Vacant 2 0 1 3
16240 Burton Rd. N40 SP N40 SP 30 30 0.26 Resid. 5 1 2 8 16270 Burton Rd. N40 SP N40 SP 30 30 0.43 Resid. 8 2 3 13 16210 Burton Rd. N40 SP N40 SP 30 30 0.26 Resid. 5 1 2 8 14831 Los Gatos Blvd. N40 SP N40 SP 30 30 0.56 Resid. 11 3 3 17 14849 Los Gatos Blvd. N40 SP N40 SP 30 30 0.93 Resid. 18 4 6 28 14823 Los Gatos Blvd. N40 SP N40 SP 30 30 0.37 Resid. 6 1 4 11 14800 Oka Rd. Low Density Resid. R-1:8 0 5 2.97 Vacant 0 1 11 12 Oka Lane Low Density Resid. R-1:8 0 5 0.31 Vacant 0 0 1 1 Oka Lane Low Density Resid. R-1:8 0 5 1.01 Vacant 0 0 4 4 Oka Lane Low Density Resid. R-1:8 0 5 1.29 Vacant 0 0 5 5 14800 Oka Rd. Low Density Resid. R-1:8 0 5 1.41 Resid. 0 0 6 6 16603 Lark Avenue Medium Density Resid. R-M:5-12 14 22 2.48 Resid. 3 3 39 29 45 35 14840 Oka Road Medium Density Resid. R-M:5-12 14 22 4.32 Vacant 6 6 66 49 78 61 Oka Lane Low Density Resid. R-1:8 0 5 6.41 Vacant 2 1 23 26 Oka Road (Cal Trans ROW) Medium Density Resid. R-1:8 14 22 4.9 Vacant 7 7 74 55 88 69 110 Knowles Dr. High Density Resid. CM:AHOZ 30 40 7.34 Comm. 106 79 79 35 264 220 206 Knowles Dr. High Density Resid. CM 30 40 2.41 Comm. 35 26 26 11 87 72 440 Los Gatos Almaden Rd. Neighborhood Comm. C-1 10 20 0.52 Comm. 0 0 9 5 9 5 445 Leigh Ave. Neighborhood Comm. C-1 10 20 0.29 Comm. 0 0 5 3 5 3 14000 Blossom Hill Rd. Neighborhood Comm. C-1 10 20 0.69 Comm. 0 0 12 7 12 7 401-409 Alberto Rd. Mixed Use Comm. CH 30 40 2.19 Vacant 4 4 46 52 54 60

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Table B: Candidate Sites Idenitified to be Rezoned to Accommodate Shortfall Housing Need Site Address/Intersection Very-Low
Income
LowIncomeModerateIncome
AboveModerate
Income
Parcel Size
(Acres)
Current
Zoning
Min.

Density
Allowed
Max.

Density
Allowed
Total
Capacity
50 Park Ave. 0 0 0 2 1 0.18 R-1D 5 12 2 1
61 Montebello Way 0 0 0 7 4 0.69 R-1D 5 12 7 4
101 S. Santa Cruz Ave. 0 0 0 21 16 0.8 C-2 20 30 21 16
165 Los Gatos Saratoga Rd. 0 0 0 10 7 0.37 C-2 20 30 10 7 50 Los Gatos Saratoga Rd. 76 75 51 51 9 7.04 CH:PD 30 40 253 211 Los Gatos Saratoga Rd. 16 9 11 9 11 9 16 18 1.49 CH:PD 30 40 54 45 Los Gatos Saratoga Rd. 3 1 2 2 3 0.28 CH:PD 30 40 10 8
15300 Los Gatos Blvd. 29 24 11 9 11 9 7 6 1.6 C-1 30 40 58 48 15349 Los Gatos Blvd. 6 5 2 2 2 1 0.34 CH 30 40 12 10
Los Gatos Blvd. 21 18 9 8 9 8 4 2 1.2 CH 30 40 43 36
Los Gatos Blvd. 24 20 10 8 10 8 4 1.34 CH 30 40 48 40
15425 Los Gatos Blvd. 19 16 8 7 8 7 4 3 1.09 CH 30 40 39 33 15975 Los Gatos Blvd. 11 9 5 4 5 4 2 0.64 CH 30 40 23 19 16203 Los Gatos Blvd. 14 12 6 5 6 5 2 0.79 CH 30 40 28 24 16492 Los Gatos Blvd. 0 0 0 4 2 0.23 C-1 10 20 4 2
Los Gatos Blvd. 0 0 0 7 4 0.38 C-1 10 20 7 4
15495 Los Gatos Blvd. 58 23 23 12 3.85 CH 30 40 116
15445 Los Gatos Blvd. 23 9 9 5 1.53 CH 30 40 46
14859 Los Gatos Blvd. 44 13 13 17 2.9 N40 SP 30 30 87
16392 Los Gatos Blvd. 12 3 3 5 0.78 N40 SP 30 30 23
16260 Burton Rd. 6 2 2 3 0.44 N40 SP 30 30 13
16250 Burton Rd. 6 2 2 3 0.44 N40 SP 30 30 13
14917 Los Gatos Blvd. 56 17 17 22 3.74 N40 SP 30 30 112 14925 Los Gatos Blvd. 91 27 27 37 6.07 N40 SP 30 30 182 Los Gatos Boulevard 15 5 5 6 1.02 N40 SP 30 30 31
16245 Burton Rd. 18 5 5 7 1.17 N40 SP 30 30 35
Burton Rd. 2 0 0 1 0.11 N40 SP 30 30 3
16240 Burton Rd. 4 1 1 2 0.26 N40 SP 30 30 8
16270 Burton Rd. 6 2 2 3 0.43 N40 SP 30 30 13
16210 Burton Rd. 4 1 1 2 0.26 N40 SP 30 30 8
14831 Los Gatos Blvd. 8 3 3 3 0.56 N40 SP 30 30 17
14849 Los Gatos Blvd. 14 4 4 6 0.93 N40 SP 30 30 28
14823 Los Gatos Blvd. 5 1 1 4 0.37 N40 SP 30 30 11
14800 Oka Rd. 0 0 1 11 2.97 R-1:8 0 5 12
Oka Lane 0 0 0 1 0.31 R-1:8 0 5 1
Oka Lane 0 0 0 4 1.01 R-1:8 0 5 4
Oka Lane 0 0 0 5 1.29 R-1:8 0 5 5
14800 Oka Rd. 0 0 0 6 1.41 R-1:8 0 5 6
16603 Lark Avenue 0 3 3 39 29 2.48 R-M:5-12 14 22 45 35 14840 Oka Road 0 6 6 66 49 4.32 R-M:5-12 14 22 78 61
Oka Lane 0 2 1 23 6.41 R-1:8 0 5 26
Oka Road (Cal Trans ROW) 0 7 7 74 55 4.9 R-1:8 14 22 88 69 110 Knowles Dr. 66 40 79 79 35 7.34 CM:AHOZ 30 40 264 220 206 Knowles Dr. 22 13 26 26 11 2.41 CM 30 40 87 72
440 Los Gatos Almaden Rd. 0 0 0 9 5 0.52 C-1 10 20 9 5
445 Leigh Ave. 0 0 0 5 3 0.29 C-1 10 20 5 3
14000 Blossom Hill Rd. 0 0 0 12 7 0.69 C-1 10 20 12 7
401-409 Alberto Rd. 0 4 4 46 52 2.19 CH 30 40 54 60

Page 649 ends

Table C: Land Use
Zoning Designation
From Table A, Column G
and Table B, Columns L and N
(e.g., "R-1")
General Land Uses Allowed (e.g., "Low-density residential") R-1D
Single-family dwelling, provided that there is not more than one principal residential structure on a lot, two-family dwelling, provided that there is not more than one principal residential structure on a lot, family daycare home, and residential care facility, small family home.

C-1
Retailing, including formula retail up to six thousand (6,000) square feet, Personal service businesses and service businesses necessary for the conduct of households, Office activities, Limited manufacturing activities when a majority of sales are made, on site, to the ultimate consumer, Activities permitted in the LM zone which were approved on or before February 1, 1993, provided any change of use must be a conforming use in the C-1 zone, and Group classes, and single-family, two-family, and multi-family in a mixed-use project through a CUP.

C-2
Retailing, including formula retail up to six thousand square feet, Office activities subject to subsection (c), Limited manufacturing activities when a majority of sales are made, on site, to the ultimate consumer, Wholesaling without warehousing on the premises, Single-family and two-family uses, in conjunction with the other uses permitted in this section and multi-family in a mixeduse project through a CUP CH
Retailing, including formula retail up to six thousand square feet, Personal service businesses and service businesses necessary for the conduct of households, Office activities, Limited manufacturing activities when a majority of sales are made on site to the ultimate consumer, Group classes, and single-family, two-family, and multi-family in a mixed-use project through a CUP CH:PD Hotel up to 300 rooms, a conference facility containing approximately 10,000 square feet, and an underground parking facility North Forty Specific Plan
Retail, Restaurant, Personal Service, Office, Hotel, Townhomes, Rowhouses, Multi-Family, Condominiums, Live/Work Lofts, Park, Public Transpiration and Parking Facilities, Small Family Daycare, Alternating Use/Shared Parking, and Botanical Nursery
R-1:8
Single-family dwelling, provided that there is not more than one principal residential structure on a lot, raising of trees, vegetables and horticultural specialties, but not including commercial greenhouses, retail nurseries, or storage of landscaping equipment, products or supplies for commercial uses, family daycare home, and residential care facility, small family home.

R-M:5-12
Single-family dwelling, two-family dwelling, family daycare home, residential care facility, small family home, multi-family dwelling, and a transitional Housing facility as defined by Health and Safety Code section 50675.2
CM
Activities involving controlled manufacturing, research and development, wholesaling, warehousing, and other light industrial uses, Sales to the ultimate consumer of articles manufactured on the premises to the customer's order, Professional and administrative offices, Emergency shelters as defined by Health and Safety Code section 50801 CM:AHOZ Multifamily dwellings, Two-family dwellings, and Single-family dwellings.

HEOZ
Housing Element Overlay Zone Implementation Program BF 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

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1 of 5
Resolution DATE
DRAFT RESOLUTION 2023-___

RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS

ADOPTING A GENERAL PLAN AMENDMENT

AND ADOPTING THE HOUSING ELEMENT OF THE GENERAL PLAN
FOR THE PERIOD OF 2023-2031 IN SUBSTANTIAL COMPLIANCE
WITH STATE HOUSING ELEMENT LAW.

GENERAL PLAN AMENDMENT APPLICATION: GP-22-003
WHEREAS, the California Legislature has found that, “California has a housing supply and affordability crisis of historic proportions” (Gov. Code Section 65589.5); and WHEREAS, the Legislature has further found that, “Among the consequences of those actions are discrimination against low-income and minority households, lack of housing to support employment growth, imbalance in jobs and housing, reduced mobility, urban sprawl, excessive commuting, and air quality deterioration” (Gov. Code Section 65589.5); and WHEREAS, the Legislature recently adopted the Housing Crisis Act of 2019 (SB 330) which states that, “In 2018, California ranked 49th out of the 50 states in housing units per capita… California needs an estimated 180,000 additional homes annually to keep up with population growth, and the Governor has called for 3.5 million new homes to be built over 7 years”; and
WHEREAS, State Housing Element Law (Government Code Sections 65580 et seq.) requires that the Town Council adopt a Housing Element for the eight-year period 2023-2031 to accommodate the Town of Los Gatos (Town) regional housing need allocation (RHNA) of 1,993 housing units, comprised of 537 very-low income units, 310 low-income units, 320 moderateincome units, and 826 above moderate-income units; and WHEREAS, to comply with State Housing Element Law, the Town has prepared Housing Element 2023-2031 (the Housing Element) in compliance with State Housing Element Law and has identified sites that can accommodate housing units meeting the Town’s RHNA; and WHEREAS, as provided in Government Code Section 65350 et. seq., adoption of the Housing Element constitutes a General Plan amendment; and ATTACHMENT 16

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2 of 5
Resolution DATE
WHEREAS, as provided in Government Code Sections 65352 – 65352.5 the Town mailed a public notice to all California Native American tribes provided by the Native American Heritage Commission; and
WHEREAS, no California Native American tribe requested consultation; and WHEREAS, the Town conducted extensive community outreach beginning in the summer of 2021, including 13 Housing Element Advisory Board (HEAB) public meetings; a joint study session with the HEAB, Planning Commission, and Town Council; four Town Council meetings; two community meetings; and public engagement at staff hosted information booths; and
WHEREAS, in accordance with Government Code Section 65585 (b), on August 29, 2022, the Town posted the Draft Housing Element and requested public comment for a 30-day review period, and on October 14, 2022, after responding to public comments, the Town submitted the Draft Housing Element to the State Department of Housing and Community Development (HCD) for its review; and
WHEREAS, the Town’s deadline to adopt a Housing Element that is in substantial compliance with State Housing Element law is January 31, 2023; and WHEREAS, on January 11, 2023, the Planning Commission held a duly and properly noticed public hearing and recommended that the Town Council adopt the Draft Housing Element, the General Plan Amendment Application, and associated Environmental Analysis; and WHEREAS, on January 12, 2023, the Town received a letter from HCD that provides a list of recommended revisions that will be necessary to comply with State Housing Element Law; WHEREAS, HCD’s primary recommended revision was that the Town revise its sites inventory to assume that properties will be developed at their minimum density; WHEREAS, the Town has revised its sites inventory to assume that properties will be developed at their minimum density and added two additional sites to the sites inventory so that the Town can satisfy its Regional Housing Needs Allocation; WHEREAS, with that revision to the sites inventory, the Town believes that the Draft Housing Element substantially complies with State Housing Element Law for the reasons stated in the Findings below;

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3 of 5
Resolution DATE
WHEREAS, the Housing Element will return to the Town Council with the additional information requested by HCD in its comment letter; and WHEREAS, the Town Council requested the opportunity to consider adopting the Housing Element in January in order to meet the January 31st deadline for adoption of a Housing Element that is in substantial compliance with State Housing Element Law, and anticipate amending the adopted Housing Element subsequent to adoption in order to add the information recommended by HCD; and
WHEREAS, this matter came before the Town Council for public hearing on January 30, 2023, and was regularly noticed in conformance with State and Town law; and WHEREAS, Town Council received testimony and documentary evidence from all interested persons who wished to testify or submit documents. Town Council considered all testimony and materials submitted, including the record of the Planning Commission proceedings and the packet of material contained in the Council Agenda Report for their meeting on January 30, 2023, along with any and all subsequent reports and materials prepared concerning this matter.

NOW, THEREFORE, BE IT RESOLVED, THAT THE TOWN COUNCIL HEREBY FINDS THAT BASED ON SUBSTANTIAL EVIDENCE IN THE RECORD:

1. The foregoing recitals are true and correct and are incorporated by reference into this action.

2. An Environmental Analysis was prepared for the Draft Housing Element. Although the Housing Element Update could have a significant effect on the environment, all potentially significant effects have been analyzed adequately in Town of Los Gatos 2040 General Plan Environmental Impact Report (EIR), adopted with statement of overriding considerations on June 30, 2022, pursuant to applicable standards, including CEQA Guidelines Section 15168(c)2, and the Draft Housing Element is consistent with the growth projections evaluated in the General Plan EIR.

3. In accordance with Government Code Section 65585(f)(1), the Town has changed the draft Housing Element to substantially comply with Housing Element Law by revising the sites inventory to assume development at minimum density and adding

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4 of 5
Resolution DATE
two additional sites to insure that the Town meets its Regional Housing Needs Allocation.

4. In addition, in accordance with Government Code Section 65585(f)(2), despite HCD’s findings, the Town believes that the Housing Element substantially complies with Housing Element Law, as provided in Government Code 65580 et seq., in that it:
a. Contains all provisions required by State Housing Element Law; b. Includes an assessment of housing needs, and an inventory of resources and constraints upon the provision of housing;
c. Includes a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing;
d. Identifies adequate sites for housing to accommodate the Town’s RHNA allocation because:
i. the Town’s RHNA allocation is 1,993 units and sites accommodating [2,312 units] have been identified; and
ii. the Sites Inventory has incorporated HCD’s recommendation that development at minimum density be assumed and two additional sites have been added in order for the Town to meet its Regional Housing Needs Allocation); and
e. Makes adequate provision for the existing and projected needs of all economic segments of the community in that the sites inventory accommodates the Town’s RHNA, which includes 537 very low-income units, 310 low-income units, 320 moderate-income units, and 826 above moderate-income units.

5. Based on substantial evidence in the record through the submittal of Property Owner Interest Forms, the existing uses on the non-vacant sites identified in the site inventory to accommodate the RHNA do not constitute an impediment to planned residential development on the sites during the planning period.

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5 of 5
Resolution DATE

6. As required by Government Code Section 65585(e), the Town Council has considered the findings made by HCD included in HCD’s letter to the Town of Los Gatos dated January 12, 2023, consistent with Government Code Section 65585(f), incorporated herein, and determined that the Draft Housing Element substantially complies with the requirements of State Housing Element Law with the recommended change to the Town’s sites inventory incorporated.

NOW, THEREFORE, THE TOWN COUNCIL RESOLVES AS FOLLOWS:

1. The Town Council hereby adopts the 2023-2031 Housing Element, the associated General Plan Amendment Application (GP-22-003) which includes the revised Sites Inventory Analysis, revised Sites Inventory Form, and the Environmental Analysis attached here to as Exhibits 1 and 2.

2. Staff is directed to continue to work with HCD to incorporate the additional information requested by HCD in order to achieve certification and return to the Town Council with an amendment incorporating the remainder of HCD’s recommendations.

3. This Resolution shall become effective upon adoption by the Town Council.

4. The Community Development Department is directed to submit a copy of the adopted Housing Element to HCD.

5. 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.

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6 of 5
Resolution DATE
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: __________________

Page 656 ends

Town of Los Gatos 6th Cycle
2023-2031 Housing Element Update
HCD Draft
Initial Review Period
October 2022
EXHIBIT 1

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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

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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

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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.

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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.

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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

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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.

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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.

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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

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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

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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.

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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

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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.

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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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10-16 HCD Draft Initial Review 2023-2031 Housing Element October 2022

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.

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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

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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.

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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

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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.

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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.

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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.

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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.

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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).

AFFH
AFFH

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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.

AFFH
AFFH
AFFH
AFFH

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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.

AFFH

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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.

AFFH
AFFH
AFFH

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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.

AFFH
AFFH
AFFH
AFFH

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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.

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

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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

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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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Responsible
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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
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

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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

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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

Page 709 ends

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

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October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-53 Programs Implements Which
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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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

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October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-55 Programs Implements Which
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

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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

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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.

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HCD Draft Initial Review 2023-2031 Housing Element
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

Page 717 ends

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

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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

Page 719 ends

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

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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.

Page 721 ends

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
.

Page 722 ends

Affirmatively Furthering Fair Housing Report A

APPENDIX

Page 723 ends

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.

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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)

Page 725 ends

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

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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

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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

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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

Page 729 ends

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

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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

Page 731 ends

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

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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/

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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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HCD Draft Initial Review 2023-2031 Housing Element
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.

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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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HCD Draft Initial Review 2023-2031 Housing Element
A-14 Appendix A October 2022
▪ 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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Los Gatos City CouncilJanuary 30, 2023

Los Gatos City Council
January 30, 2023