Agenda packet — Los Gatos City Council, January 30, 2023 (part 1 of 8)

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How to participate: The Town of Los Gatos strongly encourages your active participation in the public process, which is the cornerstone of democracy. If you wish to speak to an item on the agenda, please follow the participation instructions on page 2 of this agenda.

Effective Proceedings: The purpose of the Town Council meeting is to conduct the business of the community in an effective and efficient manner. For the benefit of the community, the Town of Los Gatos asks that you follow the Town’s meeting guidelines while attending Town Council meetings and treat everyone with respect and dignity. This is done by following meeting guidelines set forth in State law and in the Town Code. Disruptive conduct is not tolerated, including but not limited to: addressing the Town Council without first being recognized; interrupting speakers, Town Council or Town staff; continuing to speak after the allotted time has expired; failing to relinquish the podium when directed to do so; and repetitiously addressing the same subject.

Deadlines for Public Comment and Presentations are as follows:
 Persons wishing to make an audio/visual presentation on any agenda item must submit the presentation electronically, either in person or via email, to the Clerk’s Office no later than 3:00 p.m. on the day of the Council meeting.
 Persons wishing to submit written comments to be included in the materials provided to Town Council must provide the comments as follows:
o For inclusion in the regular packet: by 11:00 a.m. the Thursday before the Council meeting
o For inclusion in any Addendum: by 11:00 a.m. the Monday before the Council meeting o For inclusion in any Desk Item: by 11:00 a.m. on the day of the Council Meeting

TOWN OF LOS GATOS

SPECIAL MEETING OF THE TOWN COUNCIL AGENDA
JANUARY 30, 2023
110 EAST MAIN STREET AND VIA TELECONFERENCE

TOWN COUNCIL CHAMBERS
7:00 PM
Maria Ristow, Mayor
Mary Badame, Vice Mayor
Matthew Hudes, Council Member
Rob Moore, Council Member
Rob Rennie, Council Member

PARTICIPATION IN THE PUBLIC PROCESS
Town Council Meetings Broadcast Live on KCAT, Channel 15 (on Comcast) on the 1st and 3rd Tuesdays at 7:00 p.m.

Rebroadcast of Town Council Meetings on the 2nd and 4th Tuesdays at 7:00 p.m.

Live & Archived Council Meetings can be viewed by going to:
www.LosGatosCA.gov/TownYouTube

IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN THIS MEETING, PLEASE CONTACT THE CLERK DEPARTMENT AT (408) 354-6834. NOTIFICATION 48 HOURS BEFORE THE MEETING WILL ENABLE THE TOWN TO MAKE REASONABLE ARRANGEMENTS TO ENSURE ACCESSIBILITY TO THIS MEETING [28 CFR §35.102-35.104]

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SPECIAL MEETING OF THE TOWN COUNCIL AGENDA
JANUARY 30, 2023

TOWN COUNCIL CHAMBERS AND VIA TELECONFERENCE

TOWN COUNCIL CHAMBERS
7:00 PM

IMPORTANT NOTICE
This is a hybrid meeting and will be held in-person at the Town Council Chambers at 110 E.

Main Street and virtually through the Zoom webinar application (log-in information provided below). Members of the public may provide public comments for agenda items in-person or virtually through the Zoom webinar by following the instructions listed below. The live stream of the meeting may be viewed on television and/or online at www.LosGatosCA.gov/TownYouTube.

PARTICIPATION
To provide oral comments in real-time during the meeting:
 Zoom webinar: Join from a PC, Mac, iPad, iPhone or Android device: Please click this URL to join: https://losgatoscagov.zoom.us/j/86506358908?pwd=WFBXVndiU0lBUmlhK0hYaGRnd2RHUT09 Passcode:
396598. You can also type in 865 0635 8908 in the “Join a Meeting” page on the Zoom website at https://zoom.us/join.
 Join by telephone: Join by Telephone: Dial: USA 877 336 1839 US Toll-free or 636 651 0008 US Toll. Conference code: 686100 If you are participating by calling in, press #2 on your telephone keypad to raise your hand.
 In-Person: If you wish to speak during the meeting, please complete a “speaker’s card” located on the back of the chamber benches and return it to the Town Clerk. If you wish to speak to an item on the agenda, please list the item number. The time allocated to speakers may change to better facilitate the Town Council meeting.

When called to speak, you may be asked to provide your full name and your town/city of residence. This identifying information is optional and not a requirement for participation. Please limit your comments to three (3) minutes, or such other time as the Mayor may decide, consistent with the time limit for speakers at a Council meeting.

If you are unable to participate in real-time, you may email to [email protected] the subject line “Public Comment Item #__ ” (insert the item number relevant to your comment). Comments received by 11:00 a.m. the day of the meeting will be reviewed and distributed before the meeting. All comments received will become part of the record.

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RULES OF DECORUM AND CIVILITY
To conduct the business of the community in an effective and efficient manner, please follow the meeting guidelines set forth in the Town Code and State law.

The Town does not tolerate disruptive conduct, which includes but is not limited to:
· Addressing the Planning Commission without first being recognized; · Interrupting speakers, Planning Commissioners, or Town staff; · Continuing to speak after the allotted time has expired; · Failing to relinquish the microphone when directed to do so; · Repetitiously addressing the same subject.

Town Policy does not allow speakers to cede their commenting time to another speaker. Disruption of the meeting may result in a violation of Penal Code Section 403.

MEETING CALL TO ORDER

ROLL CALL
VERBAL COMMUNICATIONS (Members of the public are welcome to address the Town Council only on matters listed on the agenda. This portion of the agenda is limited to no more than three (3) minutes per speaker.)
PUBLIC HEARINGS (Items requested/recommended for continuance are subject to Council’s consent at the meeting.)

1. 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 GP22-003.

ADJOURNMENT (Council policy is to adjourn no later than midnight unless a majority of Council votes for an extension of time).

Writings related to an item on the Town Council meeting agenda distributed to members of the Council within 72 hours of the meeting are available for public inspection at the front desk of the Los Gatos Town Library, located at 100 Villa Avenue, and are also available for review on the official Town of Los Gatos website. Copies of desk items distributed to members of the Council at the meeting are available for review in the Town Council Chambers.

Note: The Town of Los Gatos has adopted the provisions of Code of Civil Procedure §1094.6; litigation challenging a decision of the Town Council must be brought within 90 days after the decision is announced unless a shorter time is required by State or Federal law.

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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
DATE: January 26, 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.

RECOMMENDATION:

Consider adoption of a resolution to adopt the Los Gatos 2023-2031 Housing Element.

BACKGROUND:

The Town of Los Gatos has prepared a draft update to the Housing Element of the General Plan to affirmatively further fair housing and accommodate the 1,993-unit Regional Housing Needs Allocation (RHNA) for the 2023-2031 Housing Element cycle. The content of the Draft 2023-2031 Housing Element is structured for consistency with the requirements set forth in State law. In addition to responding to requirements of State law, the Housing Element also demonstrates the Town of Los Gatos’ strategy to meet the Town’s locally determined housing needs, and that these needs are addressed through policies and programs outlined within the Housing Element. Public review and input have been a critical component of this 6 th cycle Housing Element Update. A copy of the Draft 2023-2031 Housing Element is available on the Town’s Housing Element website: https://engagelosgatoshousing.com.

California Government Code Section 65580 and following regulates the use and requirements of Housing Elements in California. State law requires that the Town update its General Plan Housing Element every eight years. State law further requires adoption of an updated Housing Element that is substantially compliant with Government Code Sections 65580 and following by January 31, 2023.

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PAGE 2 OF 12
SUBJECT: Adoption of the Los Gatos 2023-2031 Housing Element/GP-22-003 DATE: January 26, 2023
BACKGROUND (continued):

Starting in early 2021, the Town has worked diligently through the required steps to comply with State law with the goal of adopting a Housing Element prior to the January 31, 2023, deadline. Exhibit 3 of Attachment 6, presents a timeline outlining the ongoing efforts that have been completed toward achieving this goal. Guidance was also provided by the California Housing and Community Development Department (HCD) throughout the process.

On October 14, 2022, the Town submitted the Draft Housing Element and a response to public comments received during the 30-day public comment period to HCD for preliminary review, which consists of a 90-day review.

On December 13, 2022, Town staff met with the HCD reviewer and received verbal, preliminary input on the Draft Housing Element.

On December 20, 2022, the Town Council recommended that the current version of the Draft 2023-2031 Housing Element, as submitted to HCD on October 14, 2022, be considered for adoption prior to the statutory deadline of January 31, 2023. In addition, the Town Council recommended that the Sites Inventory of the Housing Element utilize the minimum density, requiring additional sites to be added in order to comply with the Town’s RHNA as determined by the Association of Bay Area Governments (ABAG) and required buffer (Attachment 5). The sites added are detailed in the Discussion Section of this report.

On January 11, 2023, the Planning Commission made a recommendation to the Town Council to adopt the Draft 2023-2031 Housing Element with the revised Sites Inventory Analysis and revised Sites Inventory Form (Attachments 6 through 8). See discussion below.

The primary purpose of this agenda item is for Town Council to consider adoption of the Draft 2023-2031 Housing Element (previously provided and referenced here as Attachment 1) with the Environmental Analysis (Attachment 2), revised Sites Inventory Analysis (Attachment 3) and revised Sites Inventory Form (Attachment 4) prior to the January 31, 2023, statutory deadline.

DISCUSSION:

The following section summarizes the required components of Housing Element updates per State law, new requirements included since the 5th cycle Housing Element adoption (2015- 2023), and penalties for non-compliance with Housing Element law. The section also includes a summary of public engagement conducted to date related to the 6th cycle Housing Element Update.

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SUBJECT: Adoption of the Los Gatos 2023-2031 Housing Element/GP-22-003 DATE: January 26, 2023
DISCUSSION (continued):

Required Components of a Housing Element
Pursuant to Government Code Section 65583, local governments are required to include the items below within their Housing Elements, and subsequent updates thereto. A new required component introduced as part of the 6th cycle is included in italics below and discussed in further detail within the “New Requirements for the 6th Cycle Housing Element Update” Section on the following page.

This Section includes a community’s RHNA as determined by a community’s regional planning body in partnership with HCD.

2. Evaluation of Past Performance: Review the prior Housing Element to measure progress in implementing policies and programs.

3. Housing Sites Inventory: Identify locations of available sites for housing development or redevelopment to demonstrate there is enough land zoned for housing to meet future need at all income levels.

4. Community Engagement: Implement a robust community engagement program that includes reaching out to individuals and families at all economic levels of the community, plus historically underrepresented groups.

5. Constraints Analysis: Analyze and recommend remedies for existing and potential governmental and nongovernmental barriers to housing development.

6. Policies and Programs: Establish policies and programs to be carried out during the 2023- 2031 planning period to fulfill the identified housing needs.

7. Affirmatively Furthering Fair Housing (AFFH): Analyze and address significant disparities in housing needs and access to opportunity by proposing housing goals, objectives, and policies that aid in 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.

New Requirements for the 6
th Cycle Housing Element Update
Pursuant to recent State legislation, the following items are now required as part of the Housing Element update process:
 Affirmatively Furthering Fair Housing (AFFH). Assembly Bill (AB) 686, passed in 2018, created new requirements for jurisdictions to affirmatively further fair housing.

According to AB 686, affirmatively furthering fair housing means to take “meaningful actions, in addition to combating discrimination, which overcome patterns of

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PAGE 4 OF 12
SUBJECT: Adoption of the Los Gatos 2023-2031 Housing Element/GP-22-003 DATE: January 26, 2023
DISCUSSION (continued):
segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics” and is Federally mandated by the 1968 Fair Housing Act. The four main goals are to:
o Address significant disparities in housing needs and in access to opportunity; o Replace segregated living patterns with truly integrated and balanced living patterns; o Transform racially and ethnically concentrated areas of poverty into areas of opportunity; and
o Foster and maintain compliance with civil rights and fair housing laws.  Public Comment on Draft Revisions. AB 215 (2021), requires local governments to make the first draft revision of their Housing Element update available for public comment for at least 30 days. Further, if any comments are received, a local government must take at least ten additional business days to consider and incorporate public comments into the draft revision before submitting to HCD. HCD must review the draft and report its written findings to the planning agency within 90 days of receiving the first draft submittal for each Housing Element revision or within 60 days of its receipt for a subsequent draft amendment or adoption.

Penalties for Non-Compliance
In the current 6
th cycle, jurisdictions face a number of new consequences for not adopting a Housing Element that is substantially compliant with state Housing Element law by the statutory deadline of January 31, 2023. Under legislation enacted in recent years, if a jurisdiction does not comply with State housing law, HCD may refer the jurisdiction to the Attorney General and significant fines may be imposed. A court finding a Housing Element inadequate may limit local land use decision-making authority until the jurisdiction brings its Housing Element into compliance, or local governments may lose the right to deny certain projects.

Conversely, an HCD-certified Housing Element makes jurisdictions eligible for, or with higher priority for, numerous sources of funding.

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PAGE 5 OF 12
SUBJECT: Adoption of the Los Gatos 2023-2031 Housing Element/GP-22-003 DATE: January 26, 2023
DISCUSSION (continued):
have at least 20 percent low-income units or 100 percent moderate income units. HCD has confirmed that no such 120-day grace period will apply this cycle and any jurisdiction that adopts a Housing Element later than January 31, 2023, will be subject to the “builder’s remedy.” This provision in the Housing Accountability Act has been available for quite some time and in Los Gatos no applications have come forward during previous Housing Element cycles when the Town missed the statutory deadline for adoption of a Housing Element.

Staff fully recognizes that the current Housing Element cycle is unlike any past cycle. It is possible that a developer could invoke the “builder’s remedy” in connection with a planning application submitted in February if the Town Council does not adopt a Housing Element that is in substantial compliance with Housing Element law by January 31, 2023.

Housing Element Requirements
The following section summarizes the major topics covered by the Town’s Housing Element.

A. Housing Needs Assessment
As part of the housing element update process the Town is required to analyze the existing and projected housing needs of the Town, including its fair share of RHNA requirements. The Town’s analysis of housing needs is required to include an assessment of detailed demographic data, including: population age, size, and ethnicity; household characteristics; overpayment trends; housing stock conditions; units in need of replacement or rehabilitation; and needs of special needs populations including the elderly, persons with disabilities, unhoused persons, extremely low-income households, and farmworkers. Utilizing the Housing Needs Data Report provided by ABAG, the 6 th
cycle Housing Element Update outlines the Town’s housing needs. See Appendix B of the Draft 2023-2031 Housing Element.

B. Regional Housing Needs Allocation (RHNA)
In January of 2022, HCD approved ABAG’s adopted Final RHNA Plan for the San Francisco Bay Area: 2023-2031 (Plan) which establishes a total RHNA for the San Francisco Bay Area of 441,176 residential units for the 6th cycle housing element update 2023-2031 planning period. ABAG’s Plan further distributes this RHNA across the Bay Area’s nine counties, and 101 cities based on demographic and population data received from the California Department of Finance (DOF). Local jurisdictions must then utilize their ascribed RHNA to update the housing elements of their general plans for the 6th cycle planning period, inclusive of identifying eligible land resources to accommodate their RHNA.

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PAGE 6 OF 12
SUBJECT: Adoption of the Los Gatos 2023-2031 Housing Element/GP-22-003 DATE: January 26, 2023
DISCUSSION (continued):

RHNA requirements are organized into four affordability categories, established according to the Area Median Income (AMI) of a geography. These categories include very low-income residential units, which are affordable to households earning less than 50 percent of AMI; low-income residential units, which are affordable to households earning between 50 percent and 80 percent of AMI; moderate income residential units, which are affordable to households earning between 80 percent and 120 percent of AMI; and above moderate-income residential units which are affordable to households earning over 120 percent of AMI. The Town’s RHNA is summarized below:

Town of Los Gatos RHNA
Income Category
5 th Cycle RHNA
(2015-2023)
6 th Cycle RHNA
(2023-2031)
Very Low (less than 50% of AMI) 201 537
Low (50-80% of AMI) 112 310
Moderate (80-120% of AMI) 132 320
Above Moderate (More than 120% of AMI) 174 826
Total 619 1,993
RHNA Buffer
New “no net loss” provisions of Government Code Section 65863 require the Town to ensure an adequate supply of land be made available for housing development throughout the duration of the 2023-2031 planning period. This means that if housing sites identified within the jurisdictions 6
th cycle Housing Element are developed with
non-residential uses, lower residential densities, or residential uses at affordability levels that are different than anticipated by the Housing Element, the Town’s Housing Element could be determined to be out of compliance. Accordingly, the Town’s Sites Inventory was compiled with a 16 percent buffer to address future compliance with “no net loss” provisions.

C. Constraints Analysis
In addition to analyzing the existing and projected housing needs of the Town, the Housing Element must also identify and analyze potential and actual governmental and nongovernmental constraints to the maintenance, improvement, or development of housing for all income levels in the community, regardless of protected class. A summary of constraints to the development and improvement of housing in the Town is included in Appendix C of the Draft 2023-2031 Housing Element.

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SUBJECT: Adoption of the Los Gatos 2023-2031 Housing Element/GP-22-003 DATE: January 26, 2023
DISCUSSION (continued):

D. Housing Resources and Sites Inventory
As part of the 6
th cycle Housing Element Update, the Town is also required to identify resources available to the Town for the preservation, rehabilitation, and production of housing throughout the community. These resources also include land within the Town of Los Gatos that are identified as eligible for accommodation of the Town’s RHNA requirements. Pursuant to Government Code Section 65583.2(a), the following resources are eligible for accommodation of the Town’s RHNA: vacant sites zoned for residential use; vacant sites zoned for nonresidential use that allows residential development; residentially zoned sites that are capable of being developed at a higher density; or sites zoned for nonresidential use that can be redeveloped for residential use, and for which the Housing Element includes a program to rezone the site. The Town’s Housing Sites Inventory is summarized in Appendices D and H of the Draft 2023-2031 Housing Element.

In response to Town Council direction given on December 20, 2022, a revised Sites Inventory Analysis (Attachment 3) and revised Sites Inventory Form (Attachment 4) have been prepared with the calculations based on an assumption of housing development at the minimum density for sites that accommodate affordable units. As a result, two additional sites were added to maintain the RHNA plus buffer discussed above. Those sites include:
 Site C-7 – 15495 Los Gatos Boulevard [Assessor’s Parcel Number (APN): 424-22-030]; and
 Site C-8 – 15445 Los Gatos Boulevard (APN: 424-19-068).

As a result, the revised Sites Inventory Analysis (Attachment 3) and revised Sites Inventory Form (Attachment 4) include sufficient sites to meet the RHNA requirement in each income category, plus a buffer of 319 housing units (16 percent).

E. Goals, Policies, and Implementation Programs
The Housing Element includes a set of goals, policies, and implementation programs intended to promote the preservation, rehabilitation, and production of housing throughout the Town. Goals are long-range, broad, and comprehensive targets that describe future outcomes the Town desires. A policy is a specific instructional guideline that seeks to promote a goal. Together, goals and policies are implemented through a series of programs that identify specific, quantifiable actions the Town will undertake during the 6th cycle planning period. The Town’s Draft Goals, Policies, and

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PAGE 8 OF 12
SUBJECT: Adoption of the Los Gatos 2023-2031 Housing Element/GP-22-003 DATE: January 26, 2023
DISCUSSION (continued):

Implementation Programs are summarized in Section 10.6 of the Draft 2023-2031 Housing Element.

F. Affirmatively Furthering Fair Housing (AFFH)
Assembly Bill (AB) 686, passed in 2018, created new requirements for jurisdictions to affirmatively further fair housing as part of the Housing Element update process. These requirements, found in Government Code Section 8899.50, are intended to address racial inequalities seen today throughout California which developed through historical policies and practices enacted at Federal, State, regional, and local levels and across the public and private sectors. Though many of these explicit forms of historical discrimination have been outlawed, the subsequent results of these systems have displaced many low income people and people of color to the peripheries of the region or out of the Bay Area all together.

Accordingly, the Town must incorporate fair housing considerations into its 6 th Cycle
Housing Element to increase housing opportunities in high resource neighborhoods. The following summarizes the components of the required AFFH component of the Town’s Housing Element and can be found in Appendix A of the Draft 2023-2031 Housing Element:
 Targeted Community Outreach;
 Assessment of Fair Housing;
 Fair Housing Outreach Capacity and Enforcement;
 Segregation and Integration Patterns;
 Racially and/or Ethnically Concentrated Areas of Poverty (R/ECAPS) and Racially Concentrated Areas of Affluence (RCAA);
 Disparities In Access to Opportunity;
 Sites Inventory Relative to Affirmatively Further Fair Housing; and  Goals, Polices, and Implementation Programs that Affirmatively Further Fair Housing.

G. Evaluation of Past Progress
Pursuant to State Law, the Draft Housing Element summarizes the implementation status of Goals, Policies, and Implementation Programs from the Town’s 5th cycle Housing Element. See Appendix E of the Draft 2023-2031 Housing Element.

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PAGE 9 OF 12
SUBJECT: Adoption of the Los Gatos 2023-2031 Housing Element/GP-22-003 DATE: January 26, 2023
DISCUSSION (continued):

The Town has a dedicated Housing Element Update website which has provided the public interactive engagement opportunities including the Balancing Act mapping tool, housing polls, and surveys. Community engagement opportunities have been publicized on the Town’s website, through the Town’s multiple social media platforms and through targeted email updates to the Town’s Notify Me subscriber list for the 2040 General Plan Update and Housing Element Update. Postcards were also sent to all property owners and tenants in the Town for the Housing Element Community meeting. Announcements have been provided in the local newspaper for all HEAB meetings, community meetings, study sessions, public hearings, and for the 30-day public review period of the Initial Public Review Draft Housing Element. Feedback received throughout the ongoing community engagement and outreach process has assisted staff and the consulting team in preparing the Draft Housing Element Update and related items.

Attachment 11 includes an updated chronological timeline detailing the ongoing efforts that have been completed.

Planning Commission
On January 11, 2023, the Planning Commission received and considered public comments on the Draft 2023-2031 Housing Element (Attachment 6) as well as written comments from a Planning Commissioner provided in an Addendum (Attachment 7). The Planning Commission found that the Draft Housing Element was in substantial compliance with State law (see Verbatim Minutes in Attachment 8).

The Planning Commission unanimously recommended the Town Council adopt the Draft 2023-2031 Housing Element (Attachment 1) with the revised Sites Inventory Analysis (Attachment 3) and revised Sites Inventory Form (Attachment 4).

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PAGE 10 OF 12
SUBJECT: Adoption of the Los Gatos 2023-2031 Housing Element/GP-22-003 DATE: January 26, 2023
DISCUSSION (continued):

HCD Findings Comment Letter
On January 12, 2023, the Town received HCD’s findings/comment letter on the Draft Housing Element (Attachment 9). The findings/comment letter from HCD provides a list of recommended revisions. In addition to the HCD’s findings/comment letter received on January 12, 2023, the Town received public comments that were submitted directly to HCD (Attachment 10). The content of the HCD’s findings/comment letter was similar to neighboring jurisdictions as reviewed by the HEAB at the December 1, 2022, HEAB meeting.

Next Steps
Town staff and the consultants continue to work on responses to the HCD comment letter and any further modifications to the Draft Housing Element required as part of that response will be provided to the HEAB for their review and consideration prior to any resubmittal.

Based on the review and a recommendation from the HEAB, a revised draft will be submitted to HCD. Subsequent reviews by HCD will take up to 60 days.

In addition, the Town must post the revisions on its website and email a link to all individuals and organizations that have previously requested notices relating to the Town’s Housing Element for at least seven days prior to submitting a revised draft Housing Element to HCD.

Based on HCD’s second review, it is possible that additional revisions may be needed before HCD would certify the Housing Element. This means that Planning Commission and Town Council hearings for adoption of a revised Housing Element would need to be conducted.

PUBLIC COMMENT:

Attachment 14 includes public comment received between 11:01 a.m., Tuesday, December 20, 2022, and 11:00 a.m., Thursday, January 26, 2023.

ENVIRONMENTAL ASSESSMENT:

An Environmental Analysis was prepared for the Housing Element Update (Attachment 2).

Although the Housing Element Update could have a significant effect on the environment, it was found that all potentially significant effects have been analyzed adequately in Town of Los Gatos 2040 General Plan Environmental Impact Report (EIR), pursuant to applicable standards including CEQA Guidelines Section 15168(c)2, and the Housing Element Update is consistent with the growth projections evaluated in the General Plan EIR.

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PAGE 11 OF 12
SUBJECT: Adoption of the Los Gatos 2023-2031 Housing Element/GP-22-003 DATE: January 26, 2023
CONCLUSION:

Since the Summer of 2021, the HEAB worked with staff and the consultant to create the 2023-2031 Draft Housing Element. The Draft Housing Element is the result of extensive community outreach as described in this report. In conclusion, based on the HEAB and Planning Commission's recommendations, staff recommends that the Town Council:
 Receive and consider public comments;
 Review the Draft 2023-2031 Housing Element (Attachment 1), the Environmental Analysis (Attachment 2), the Revised Sites Inventory Analysis (Attachment 3) and the revised Sites Inventory Form (Attachment 4); and
 Adopt a resolution (Attachment 12) to adopt the Draft 2023-2031 Housing Element (Attachment 1) with the revised Sites Inventory Analysis (Attachment 3) and revised Sites Inventory Form (Attachment 4).

ALTERNATIVES:

Alternatively, the Council may:

1. Continue this item to a date certain with specific direction to staff;

2. Refer the item back to the Planning Commission with specific direction; or

3. Not adopt the Draft 2023-2031 Housing Element; or

4. Recommend adoption with modifications.

COORDINATION:

The Community Development Department coordinated with the offices of the Town Attorney and Town Manager in the preparation of this report.

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
Received with this 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

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PAGE 12 OF 12
SUBJECT: Adoption of the Los Gatos 2023-2031 Housing Element/GP-22-003 DATE: January 26, 2023

8. January 11, 2023, Planning Commission Verbatim Minutes ATTACHMENTS (continued):

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

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ATTACHMENTS
1-4
Links:

1. Draft 2023-2031 Housing Element:
https://www.losgatosca.gov/DocumentCenter/View/3
1775/Draft-Housing-Element

2. Environmental Analysis:
https://www.losgatosca.gov/DocumentCenter/View/
32424/Housing-Element-Final-EnvironmentalAnalysis3. Revised Appendix D, Sites Inventory Analysis:
https://www.losgatosca.gov/DocumentCenter/View/
32582/Revised-Appendix-D---Sites-Inventory-Analysis

4. Revised Appendix H, Sites Inventory Form:
https://www.losgatosca.gov/DocumentCenter/View/
31814/Revised-Appendix-H---Site-Inventory-Form

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110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
Minutes of the Town Council
December 20, 2022
The Town Council of the Town of Los Gatos conducted a regular meeting in-person and utilizing teleconferencing means on Tuesday, December 20, 2022 at 7:00 p.m.

MEETING CALLED TO ORDER AT 7:00 P.M.

ROLL CALL

Present: Mayor Maria Ristow, Vice Mayor Mary Badame, Council Member Matthew Hudes, Council Member Rob Moore, Council Member Rob Rennie.

Absent: None

PLEDGE OF ALLEGIANCE
Dominic Farwell led the Pledge of Allegiance. The audience was invited to participate.

COUNCIL / MANAGER MATTERS
Council Matters
- Council Member Hudes stated he attended the Senior Service Committee Roadmap subcommittee meetings, the Finance Commission meeting, and Senior Service Committee meetings.
- Council Member Rennie stated he attended the Bay Area Air Quality Management District (BAAQMD) Board meeting, the Valley Transportation Authority (VTA) Policy Advisory Committee meeting, Cities Association Holiday Party, the Swearing-In of Assembly Member Pellerin, the Silicon Valley Clean Energy Risk Oversight Committee meeting, the BAAQMD Legislative Committee meeting, the Finance Commission meeting, and the Silicon Valley Clean Energy Board meeting.
- Council Member Moore stated he attended the retirement celebration for Diane Fisher of the Jewish Community Relations Council.
- Vice Mayor Badame stated she attended the West Valley Sanitation District Authority Board meeting and observed the December 20th Finance Commission meeting which was cancelled due to lack of a quorum.
- Mayor Ristow stated she attended the Cities Association Holiday Party, the Silicon Valley Bike Coalition Open House and Members Party, the Safe Routes to School (SR2S) Volunteer Luncheon, the Azerbaijani Solidarity Concert, taught Bike Skills to 5th Graders, took a Horse Drawn Carriage Ride and thanked the Chamber of Commerce, and announced a Hannukah on Main event to be held on December 22nd at 5 p.m. on the Civic Center Lawn.

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PAGE 2 OF 5
SUBJECT: Minutes of the Town Council Meeting of December 20, 2022 DATE: January 6, 2023
Manager Matters
- Announced free valet parking service is available through Saturday, December 24. - Announced Town Administrative Offices will be closed Friday, December 23 and will reopen on Tuesday, January 3, 2023. - Announced the Library will be closed December 23-26 and December 30, 2022 - January 2, 2023.
- Announced a new online business license module will be implemented soon, and additional information is available on the Town website.

CONSENT ITEMS

1. Approve Minutes of the December 6, 2022 Town Council Meeting.

2. Approve Minutes of the December 13, 2022 Town Council Special Meeting.

3. Approve Minutes of the December 13, 2022 Town Council Special Meeting Regarding Commission Interviews.

4. Adopt a Resolution Reaffirming Resolution 2021-044 and Making Findings Pursuant to Government Code Section 54953, as Amended by Assembly Bill 361, and, Due to Health and Safety Concerns for the Public, Authorizing the Use of Hybrid Meetings for the Town Council and the Continued Use of Virtual Meetings for Boards and Commissions While Town Staff Makes the Necessary Arrangements to Transition to Hybrid Meetings for All Town Boards, Commissions, and Committees. RESOLUTION 2022-076

5. Reaffirm the Town Council Code of Conduct Policy.

6. Adopt 2023 Council Committee Appointments.

7. Annual Comprehensive Financial Report (ACFR):
a. Receive the Annual Comprehensive Financial Report (ACFR) for the Fiscal Year Ended June 30, 2022, and
b. Adopt a Resolution Confirming June 30, 2022 Fund Balances in Accordance Fiscal Year 2021/22 Final Audit and Town Council General Fund Reserve Policy. RESOLUTION 2022- 077

8. Approve a First Amendment to the Agreement with Turbo Data Systems, Inc. in the Amount of $110,774 for a Total Amended Agreement Amount Not to Exceed $206,041.54 for a Three-Year Extension of Parking Citation and Permit Parking Processing Services.

9. Authorize the Continuation of the Business License Late Fee Penalty Suspension into the 2023 Calendar Year.

10. Authorize the Town Manager to Execute an Assignment of Agreement with Bartel Associates, LLC to Assign the Agreement to Foster and Foster Consulting Actuaries, Inc.

Council Member Hudes pulled item #7.

Opened public comment.

No one spoke.

Closed public comment.

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PAGE 3 OF 5
SUBJECT: Minutes of the Town Council Meeting of December 20, 2022 DATE: January 6, 2023
Consent Items – continued
MOTION: Motion by Council Member Rennie to approve items 1-10, exclusive of item 7.

Seconded by Vice Mayor Badame.

VOTE: Motion passes unanimously.

VERBAL COMMUNICATIONS
Chris Wiley
- Requested Council “bury the hatchet” by ripping up a piece of paper with a picture of a hatchet that was distributed to each Council Member.

LOC
- Commented on hate speech and how to express hurt feelings.

PUBLIC HEARING

11. Consider a Request for a Continuance for an Appeal of a Planning Commission Decision to Deny a Fence Height Exception Request for Construction of a Six-Foot Fence Located Within the Required Front Yard Setback and a Vehicular Gate Set Back Less than 18 Feet from the Edge of the Adjacent Street on Property Zoned R-1:10. APN 523-04-043. PROPERTY OWNER/APPELLANT: David and Ilana Kohanchi. APPLICANT: Nina Guralnic.

Jennifer Armer, Planning Manager, presented the staff report.

Opened public comment.

No one spoke.

Closed public comment.

Council discussed the item.

MOTION: Motion by Vice Mayor Badame continue an appeal of a Planning Commission decision to deny a Fence Height Exception request for construction of a Six-Foot Fence located within the required front yard setback and a vehicular gate set back less than 18 feet from the edge of the adjacent street on property zoned R-1:10.

APN 523-04-043. PROPERTY OWNER/APPELLANT: David and Ilana Kohanchi.

APPLICANT: Nina Guralnic to a date certain of January 17, 2023 per the appellant’s request. Seconded by Council Member Moore.

VOTE: Motion passed unanimously.

Page 19 ends

PAGE 4 OF 5
SUBJECT: Minutes of the Town Council Meeting of December 20, 2022 DATE: January 6, 2023

OTHER BUSINESS

12. Review and Approve the Town’s Response to the 2022 Civil Grand Jury of Santa Clara County Report Entitled, “If You Only Read the Ballot, You’re Being Duped.” Gabrielle Whelan, Town Attorney, provided the staff report.

Opened public comment.

No one spoke.

Closed public comment.

Council discussed the item.

MOTION: Motion by Council Member Hudes to revise the proposed response to the Grand Jury to accept recommendations 1b and 1c and leave the rest of the letter as is.

AMENDMENT: Revise the response to state the Town is planning to implement recommendation 1c if the County Counsel is open to doing the review, then the ballot question would be provided for a five-day review, and if no comment is received within five days, the Town would proceed with its proposed ballot question. Also, the response to the Grand Jury should include the reasons why the Town feels this recommendation is unnecessary and under these specific circumstances, the Town will submit the response. Seconded by Vice Mayor Badame.

VOTE: Motion passes unanimously.

13. Discuss the Housing Element Update and Provide Direction on Next Steps.

Jocelyn Shoopman, Associate Planner, provided the staff report.

Opened public comment.

No one spoke.

Closed public comment.

Council discussed the item.

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PAGE 5 OF 5
SUBJECT: Minutes of the Town Council Meeting of December 20, 2022 DATE: January 6, 2023
Other Business Item #13 – continued
MOTION: Motion by Vice Mayor Badame to bring the Housing Element to the Council for consideration of adoption before January 31, 2023, and utilize the minimum density for calculating the residential capacity of the Site Inventory with the understanding that additional sites may need to be selected to comply with California Housing and Community Development Department (HCD) requirements. Seconded by Council Member Rennie.

VOTE: Motion passed unanimously.

Pulled Consent Item #7

Arn Andrews, Assistant Town Manager, provided the staff report.

Opened public comment.

Ron Dickel
- Commented on the item and stated the Commissioners reviewed the report and were given opportunities to make comments.

Closed public comment.

Council discussed the item.

MOTION: Motion by Council Member Rennie to receive the Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2022, as recommended by the Finance Commission and adopt a resolution confirming June 30, 2022 Fund Balances in accordance with Fiscal Year 2021/22 Final Audit and Town Council General Fund Reserve Policy. Seconded by Council Member Moore.

VOTE: Motion passed 3-2. Vice Mayor Badame and Council Member Hudes voted no.

ADJOURNMENT
The meeting adjourned at 9:02 p.m.

Respectfully submitted:
_____________________________________
/s/ Jenna De Long, Deputy Clerk

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Intentionally
Left Blank

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PREPARED BY: Erin Walters and Jocelyn Shoopman
Associate Planners
Reviewed by: Planning Manager, Community Development Director, and Town Attorney 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6872 www.losgatosca.gov

TOWN OF LOS GATOS

PLANNING COMMISSION
REPORT
MEETING DATE: 01/11/2023
ITEM NO: 5
DATE: January 6, 2023
TO: Planning Commission
FROM: Joel Paulson, Community Development Director
SUBJECT: Consider and Make a Recommendation to the Town Council on the Draft 2023-2031 Housing Element. Location: Town-Wide. General Plan Amendment Application GP-22-003.

RECOMMENDATION:

Consider and make a recommendation to the Town Council on the Draft 2023-2031 Housing Element.

EXECUTIVE SUMMARY:

The Town of Los Gatos has prepared a draft update to the Housing Element of the General Plan to affirmatively further fair housing and accommodate the 1,993-unit Regional Housing Needs Allocation (RHNA) for the 2023-2031 Housing Element cycle. The content of the draft 2023- 2031 Housing Element is structured for consistency with the requirements set forth in State law. In addition to responding to requirements of State law, the Housing Element also demonstrates the Town of Los Gatos’ strategy to meet the Town’s locally determined housing needs, and that these needs are addressed through policies and programs outlined within the Housing Element. Public review and input have been a critical component of this 6th cycle Housing Element Update. A copy of the Draft 2023-2031 Housing Element is available on the Town’s Housing Element website: https://engagelosgatoshousing.com.

BACKGROUND:

California Government Code Section 65580 and following regulates the use and requirements of housing elements in California. State law requires that the Town update its General Plan Housing Element every eight years. State law further requires adoption of an updated Housing Element that is substantially compliant with Government Code Sections 65580 and following by January 31, 2023.

ATTACHMENT 6

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PAGE 2 OF 10
SUBJECT: DRAFT HOUSING ELEMENT/GP-22-003
DATE: January 6, 2023
BACKGROUND (continued):

Starting in early 2021, the Town has worked diligently through the required steps to comply with State law with the goal of adopting a Housing Element prior to the January 31, 2023, deadline. Exhibit 3 presents a timeline outlining the ongoing efforts that have been completed toward achieving this goal. Guidance was also provided by the California Housing and Community Development Department (HCD) throughout the process.

On December 13, 2022, Town staff met with the HCD reviewer and received verbal, preliminary input on the Draft Housing Element.

On December 20, 2022, the Town Council recommended that the current version of the Draft 2023-2031 Housing Element, as submitted to HCD on October 14, 2022, be considered for adoption prior to the statutory deadline of January 31, 2023. In addition, the Town Council recommended that the Sites Inventory of the Housing Element utilize the minimum density, requiring additional sites to be added in order to comply with the Town’s RHNA as determined by the Association of Bay Area Governments (ABAG) and required buffer. The sites added are detailed in the Discussion Section of this report.

The primary purpose of this agenda item is to provide a recommendation to Town Council on whether to adopt the Draft 2023-2031 Housing Element (Exhibit 1) with the revised Sites Inventory Analysis (Exhibit 4) and revised Sites Inventory Form (Exhibit 5).

DISCUSSION:

The following section summarizes the required components of housing element updates per State law, new requirements included since the 5th cycle Housing Element adoption (2015- 2023), and penalties for non-compliance with Housing Element law. The section also includes a summary of public meetings related to the 6
th cycle Housing Element Update prior to today’s
meeting.

Required Components of a Housing Element
Pursuant to Government Code Section 65583, local governments are required to include the items below within their Housing Elements, and subsequent updates thereto. Newly required components introduced as part of the 6
th cycle are included in italics below and discussed in further detail within the “New Requirements for the 6
th cycle Housing Element Update” Section
on the following page.

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PAGE 3 OF 10
SUBJECT: DRAFT HOUSING ELEMENT/GP-22-003
DATE: January 6, 2023
DISCUSSION (continued):

1. Housing Needs Assessment: Examine demographic, employment, housing trends and conditions, and identify existing and projected housing needs of the community, with attention paid to special housing needs (e.g., large families, persons with disabilities). This Section includes a community’s RHNA as determined by a community’s regional planning body in partnership with HCD.

2. Evaluation of Past Performance: Review the prior Housing Element to measure progress in implementing policies and programs.

5. Constraints Analysis: Analyze and recommend remedies for existing and potential governmental and nongovernmental barriers to housing development.

6. Policies and Programs: Establish policies and programs to be carried out during the 2023- 2031 planning period to fulfill the identified housing needs.

New Requirements for the 6
th Cycle Housing Element Update
Pursuant to recent State legislation, the following items are now required as part of the housing element update process:
• Affirmatively Furthering Fair Housing (AFFH). Assembly Bill (AB) 686, passed in 2018, created new requirements for jurisdictions to affirmatively further fair housing. According to AB 686, affirmatively furthering fair housing means to take “meaningful actions, in addition to combating discrimination, which overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics” and is Federally mandated by the 1968 Fair Housing Act. The four main goals are to:
o Address significant disparities in housing needs and in access to opportunity; o Replace segregated living patterns with truly integrated and balanced living patterns; o Transform racially and ethnically concentrated areas of poverty into areas of opportunity; and

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PAGE 4 OF 10
SUBJECT: DRAFT HOUSING ELEMENT/GP-22-003
DATE: January 6, 2023
DISCUSSION (continued):
o Foster and maintain compliance with civil rights and fair housing laws. • Public Comment on Draft Revisions. AB 215 (2021), requires local governments to make the first draft revision of their housing element update available for public comment for at least 30 days. Further, if any comments are received, a local government must take at least ten additional business days to consider and incorporate public comments into the draft revision before submitting to HCD. HCD must review the draft and report its written findings to the planning agency within 90 days of receiving the first draft submittal for each housing element revision or within 60 days of its receipt for a subsequent draft amendment or adoption.

Conversely, an HCD-certified Housing Element makes jurisdictions eligible for, or with higher priority for, numerous sources of funding.

Builder’s Remedy
Under the Housing Accountability Act, jurisdictions who do not have an adopted Housing Element that is in substantial compliance with State law by the statutory deadline (January 31, 2023, for the Bay Area) could be required to approve a residential development even if it does not meet local General Plan and zoning regulations. The “builder’s remedy” has been in the Housing Accountability Act since 1990 and pertains to residential developments that have at least 20 percent low-income units or 100 percent moderate income units. HCD has confirmed that no such 120-day grace period will apply this cycle and any jurisdiction that adopts a Housing Element later than January 31, 2023, will be subject to the “builder’s remedy.” This provision in the Housing Accountability Act has been available for quite some time and in Los Gatos no applications have come forward during previous Housing Element cycles when the Town missed the statutory deadline for adoption of a Housing Element.

Staff fully recognizes that the current Housing Element cycle is unlike any past cycle. It is possible that a developer could invoke the “builder’s remedy” in connection with a planning

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PAGE 5 OF 10
SUBJECT: DRAFT HOUSING ELEMENT/GP-22-003
DATE: January 6, 2023
DISCUSSION (continued):
application submitted in February if the Town Council does not adopt a Housing Element that is in substantial compliance with Housing Element law by January 31, 2023.

Housing Element Requirements
The following section summarizes the major topics covered by the Town’s Housing Element.

The Town’s analysis of housing needs is required to include an assessment of detailed demographic data including: population age, size, and ethnicity; household characteristics; overpayment trends; housing stock conditions; units in need of replacement or rehabilitation; and needs of special needs populations including the elderly, persons with disabilities, unhoused persons, extremely low-income households, and farmworkers.

Utilizing the Housing Needs Data Report provided by ABAG, the 6 th cycle Housing Element
Update outlines the Town’s housing needs. See Appendix B of the Draft 2023-2031 Housing Element.

RHNA requirements are organized into four affordability categories, established according to the Area Median Income (AMI) of a geography. These categories include very lowincome residential units, which are affordable to households earning less than 50 percent of AMI; low-income residential units, which are affordable to households earning between 50 percent and 80 percent of AMI; moderate income residential units, which are affordable to households earning between 80 percent and 120 percent of AMI; and above moderateincome residential units which are affordable to households earning over 120 percent of AMI. The Town’s RHNA is summarized on the following page:

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PAGE 6 OF 10
SUBJECT: DRAFT HOUSING ELEMENT/GP-22-003
DATE: January 6, 2023
DISCUSSION (continued):

Town of Los Gatos RHNA
Income Category
5 th Cycle RHNA
(2015-2023)
6 th Cycle RHNA
(2023-2031)
Very Low (less than 50% of AMI) 201 537
Low (50-80% of AMI) 112 310
Moderate (80-120% of AMI) 132 320
Above Moderate (More than 120% of AMI) 174 826
Total 619 1,993
RHNA Buffer
New “no net loss” provisions of Government Code Section 65863 require the Town to ensure an adequate supply of land be made available for housing development throughout the duration of the 2023-2031 planning period. This means that if housing sites identified within the jurisdictions 6
th cycle Housing Element are developed with non-residential uses, lower residential densities, or residential uses at affordability levels that are different than anticipated by the Housing Element, the Town’s Housing Element could be determined to be out of compliance. Accordingly, the Town’s Sites Inventory was compiled with a 16 percent buffer to address future compliance with “no net loss” provisions.

D. Housing Resources and Sites Inventory
As part of the 6
th cycle housing element update, the Town is also required to identify resources available to the Town for the preservation, rehabilitation, and production of housing throughout the community. These resources also include land within the Town of Los Gatos that are identified as eligible for accommodation of the Town’s RHNA requirements. Pursuant to Government Code Section 65583.2(a), the following resources are eligible for accommodation of the Town’s RHNA: vacant sites zoned for residential use; vacant sites zoned for nonresidential use that allows residential development; residentially zoned sites that are capable of being developed at a higher density; or sites zoned for nonresidential use that can be redeveloped for residential use, and for which the Housing

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PAGE 7 OF 10
SUBJECT: DRAFT HOUSING ELEMENT/GP-22-003
DATE: January 6, 2023
DISCUSSION (continued):

Element includes a program to rezone the site. The Town’s Housing Sites Inventory is summarized in Appendices D and H of the Draft 2023-2031 Housing Element.

In response to Town Council direction given on December 20, 2022, a revised Sites Inventory Analysis (Exhibit 4) and revised Sites Inventory Form (Exhibit 5) have been prepared with the calculations based on an assumption of housing development at the minimum density for sites that accommodate affordable units. As a result, two additional sites were added to maintain the RHNA plus buffer discussed above. Those sites include:
• Site C-7 – 15495 Los Gatos Boulevard (APN: 424-22-030); and • Site C-8 – 15445 Los Gatos Boulevard (APN: 424-19-068).

As a result, the revised Sites Inventory Analysis (Exhibit 4) and revised Sites Inventory Form (Exhibit 5) include sufficient sites to meet the RHNA requirement in each income category, plus a buffer of 319 housing units (16 percent).

F. Affirmatively Furthering Fair Housing (AFFH)
Assembly Bill (AB) 686, passed in 2018, created new requirements for jurisdictions to affirmatively further fair housing as part of the housing element update process. These requirements, found in Government Code Section 8899.50, are intended to address racial inequalities seen today throughout California which developed through historical policies and practices enacted at Federal, State, regional, and local levels and across the public and private sectors. Though many of these explicit forms of historical discrimination have been outlawed, the results of these systems have left a lasting imprint on both the Bay Area region and the Town. Racially explicit practices (e.g., racial covenants) which excluded persons of color from predominately white neighborhoods have been replaced with raceneutral land use policies that continue to exclude these same groups. Furthermore, rapidly increasing housing costs have deepened racial and economic disparity and segregation,

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PAGE 8 OF 10
SUBJECT: DRAFT HOUSING ELEMENT/GP-22-003
DATE: January 6, 2023
DISCUSSION (continued):
displacing many low income people and people of color to the peripheries of the region or out of the Bay Area all together.

Accordingly, the Town must incorporate fair housing considerations into its 6 th Cycle
Housing Element to increase housing opportunities in high resource neighborhoods. The following summarizes the components of the required AFFH component of the Town’s Housing Element and can be found in Appendix A of the Draft 2023-2031 Housing Element:
• Targeted Community Outreach;
• Assessment of Fair Housing;
• Fair Housing Outreach Capacity and Enforcement;
• Segregation and Integration Patterns;
• Racially and/or Ethnically Concentrated Areas of Poverty (R/ECAPS) and Racially Concentrated Areas of Affluence (RCAA);
• Disparities In Access to Opportunity;
• Sites Inventory Relative to Affirmatively Further Fair Housing; and • Goals, Polices, and Implementation Programs that Affirmatively Further Fair Housing.

See Appendix E of the Draft 2023-2031 Housing Element.

H. Community Engagement
Beginning the summer of 2021, the Town has conducted a comprehensive community engagement and outreach strategy, as required by Government Code, to inform the 6 th
cycle Housing Element Update process. This strategy has included a series of 13 Housing Element Advisory Board (HEAB) public meetings; two community meetings; a joint study session with the HEAB, Planning Commission, and Town Council; four Town Council meetings; and public engagement at staff hosted informational booths. The Town has a dedicated Housing Element Update website which has provided the public interactive engagement opportunities including the Balancing Act mapping tool, housing polls, and surveys. Community engagement opportunities have been publicized on the Town’s website, through the Town’s multiple social media platforms and through targeted email updates to the Town’s Notify Me subscriber list for the 2040 General Plan Update and Housing Element Update. Postcards were also sent to all property owners and tenants in the Town for the Housing Element Community meeting. Announcements have been provided in the local newspaper for all HEAB meetings, community meetings, study

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PAGE 9 OF 10
SUBJECT: DRAFT HOUSING ELEMENT/GP-22-003
DATE: January 6, 2023
DISCUSSION (continued):
sessions, public hearings, and for the 30-day public review period of the Initial Public Review Draft Housing Element. Feedback received throughout the ongoing community engagement and outreach process has assisted staff and the consulting team in preparing the Draft Housing Element Update and related items.

Exhibit 3 presents a chronological timeline detailing the ongoing efforts that have been completed.

Next Steps
To complete the goal of adopting a Housing Element that is in substantial compliance with State law by the statutory deadline (January 31, 2023), the Town Council is scheduled to consider Planning Commission’s recommendation on the adoption of the Draft Housing Element at a Special Town Council Meeting on January 30, 2023.

In parallel with the process under consideration tonight, Town staff and the consultants will continue to work with HCD to consider and respond to any comments from their review of the Draft Housing Element. The Town expects to receive its comment letter from HCD on the Draft Housing Element by January 12, 2023. Once the HCD comment letter has been received, a draft memorandum in response to the HCD comment letter, illustrating how each comment has been responded to and how it is in substantial compliance with State law will be prepared for review by the HEAB.

Based on review and recommendation from the HEAB, a revised draft will be submitted to HCD in response to the initial comment letter. Subsequent reviews by HCD will take up to 60 days.

The Town must post the revision on its website and email a link to all individuals and organizations that have previously requested notices relating to the Town’s Housing Element for at least seven days prior to submitting a revised draft Housing Element to HCD.

ENVIRONMENTAL ASSESSMENT:

An Environmental Analysis was prepared for the Housing Element Update. Although the Housing Element Update could have a significant effect on the environment, it was found that all potentially significant effects have been analyzed adequately in Town of Los Gatos 2040 General Plan Environmental Impact Report (EIR), pursuant to applicable standards including

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PAGE 10 OF 10
SUBJECT: DRAFT HOUSING ELEMENT/GP-22-003
DATE: January 6, 2023
ENVIRONMENTAL ASSESSMENT (continued):

CEQA Guidelines Section 15168(c)2, and the Housing Element Update is consistent with the growth projections evaluated in the General Plan EIR.

PUBLIC COMMENTS:

At the time of this report’s preparation, the Town has not received any public comment.

CONCLUSION:

A. Recommendation
Staff recommends that the Planning Commission:

1. Receive and consider public comments;

2. Consider the Draft 2023-2031 Housing Element (Exhibit 1), the Environmental Analysis (Exhibit 2), and the Revised Sites Inventory (Exhibit 4); and

3. Forward a recommendation to the Town Council to adopt the Draft 2023-2031 Housing Element (Exhibit 1) with the revised Sites Inventory Analysis (Exhibit 4) and revised Sites Inventory Form (Exhibit 5);
B. Alternatives
Alternatively, the Commission can:

1. Recommend the Town Council not adopt the Draft 2023-2031 Housing Element; or

2. Recommend adoptions with modifications.

EXHIBITS:

Previously received (available online here: https://engagelosgatoshousing.com):

1. Draft 2023-2031 Housing Element

2. Environmental Analysis
Received with this Staff Report:

3. Housing Element Update Process Timeline

4. Revised Appendix D, Sites Inventory Analysis

5. Revised Appendix H, Sites Inventory Form

Page 32 ends

HOUSING ELEMENT PROCESS TIMELINE
On April 21, 2021, the Town issued a Request for Proposals (RFP) for consultant services for preparation of the 2023-2031 Housing Element. The Town received a proposal from one firm, EMC Planning Group, Inc.

On June 15, 2021, the Town Council authorized the Town Manager to execute an agreement for Consultant Services with EMC Planning Group, Inc. to prepare the 2023-2031 Housing Element and associated public engagement and environmental review documents.

On August 3, 2021, the Town Council adopted Resolution 2021-032 to establish the Housing Element Advisory Board (HEAB) to serve as an advisory board that provides input on specific tasks associated with the Housing Element Update and established the role of the HEAB as follows:
• Provide guidance on the development of the Housing Element Update; • Provide an additional forum for public involvement;
• Forward milestone products to the Planning Commission and Town Council; • Review the Draft Housing Element; and
• Make recommendations to the Planning Commission and Town Council.

On August 9, 2021, the Town participated in a Let’s Talk Housing Community Meeting for Santa Clara County jurisdictions hosted by the Santa Clara County Planning Collaborative.

On September 21, 2021, the Town Council appointed four at-large members to the HEAB, in addition to the existing nine members of the General Plan Committee (GPC).

On October 15, 2021, the HEAB held their first meeting to elect the Chair and Vice Chair and adopt a meeting schedule.

On December 16, 2021, the HEAB discussed the Housing Element process, milestones, and reviewed the Draft Housing Needs Assessment and Review of Previous Housing Element appendices as contextual background information for future work by the HEAB.

On February 17, 2022, the HEAB reviewed and discussed the Housing Element Site Inventory analysis process.

On March 31, 2022, a Community Meeting was held for the public to review and provide input on potential sites for inclusion in the Site Inventory. At the meeting, the Balancing Act tool and Housing Element Update website site surveys were introduced to the public.

On April 6, 2022, a Joint Study Session of the Town Council, Planning Commission, and HEAB was held to discuss the production of affordable housing.

EXHIBIT 3

Page 33 ends

On April 21, 2022, the HEAB provided feedback on additional sites to include in the Site Inventory, in addition to the sites already identified by staff and the Housing Element Consultant. Results from the Balancing Act tool and Housing Element Update website site surveys were also shared with the HEAB.

On April 21, 2022, Property Owner Interest forms were mailed out to the property owners of the sites selected in the Draft Site Inventory to garner their interest in providing housing on their property. An electronic copy of the Property Owner Interest form was also made available on the Housing Element Update website.

On April 24, 2022, Town staff hosted a booth at the Spring Into Green event at the Town Plaza to provide the public an opportunity to discuss the Housing Element Update.

On May 5, 2022, the HEAB continued the discussion of the Site Inventory and provided feedback on additional sites that should be included.

On May 19, 2022, HEAB recommended the acceptance of the Site Inventory as proposed within Tier 1, with modifications to reduce the number of housing units within the North Forty, to add the site located at 206 Knowles Drive, and to add the site located within the California Department of Transportation right-of-way off of Oka Road. The sites identified by the HEAB at their meetings of April 21, 2022, and May 5, 2022, were divided by staff into three tiers based on the HCD checklist, property size, Zoning, General Plan land use designation, recently developed, environmental constraints, public feedback, and Property Owner Interest forms that were submitted to the Town.

On June 7, 2022, the Town Council considered the Site Inventory as recommended by the HEAB and recommended approval of the Tier 1 sites as presented in the staff report with an amendment to provide a unit projection for Senate Bill 9 projects. Since the recommendation of the HEAB at their May 19, 2022, meeting, an additional Property Owner Interest form was received for 15795 Los Gatos Boulevard and was added to the Tier 1 list. In addition, a letter from the property owner for 15827 Los Gatos Boulevard was received requesting to be removed from the Draft Site Inventory. In response, the Tier 2 site list was modified to remove the site.

On June 16, 2022, the HEAB reviewed and provided initial direction and modifications to the Draft Housing Element Goals, Policies, and Implementation Programs.

On July 7, 2022, the HEAB continued to review and provide additional direction and modifications to the Draft Housing Element Goals, Policies, and Implementation Programs.

On August 4, 2022, the HEAB completed review of the Draft Housing Element Goals, Policies, and Implementation Programs and provided feedback for additional modifications.

On August 16, 2022, signatures were submitted to the Town in support of a referendum on the Land Use and Community Design Elements of the approved 2040 General Plan.

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On August 18, 2022, the HEAB reviewed and provided feedback for modifications to the Initial Public Review Draft Housing Element prior to the release of the document for the required 30- day public comment period.

On August 29, 2022, the Town released the Initial Public Review Draft Housing Element for a 30- day public comment period which ran from August 29, 2022, to September 27, 2022.

On September 4, 2022, Town staff hosted a booth at the Los Gatos Farmers’ Market to provide the public an opportunity to discuss the Initial Public Review Draft Housing Element during the 30-day public comment period.

On September 15, 2022, the HEAB received public comments on the Initial Public Review Draft Housing Element during the 30-day public review period.

On September 27, 2022, the referendum signatures on the Land Use and Community Design Elements of the approved 2040 General Plan were verified by the Santa Clara County Registrar.

On October 9, 2022, Town staff hosted a booth at the Los Gatos Farmers’ Market to provide opportunity for the public to discuss the Draft Housing Element.

On October 20, 2022, the HEAB reviewed the Draft Housing Element that was submitted to HCD for preliminary review, including a summary of all modifications that were made to the Draft Housing Element. Modifications to the Site Inventory as reviewed by the Town Council on June 7, 2022, include:
• The addition of 401-409 Alberto Way as the property owner submitted a Property Owner Interest form to the Town;
• The removal of 404 North Santa Cruz Avenue, 420 North Santa Cruz Avenue, and 430 North Santa Cruz Avenue (Los Gatos Shopping Center) from the Site Inventory per the property owner’s request and therefore deleted the North Santa Cruz Avenue Area; • The removal of 16535 Camellia Terrace and parcel number 523-02-005 (El Gato Village) as no Property Owner Interest form was submitted;
• Increased the housing density within the North Forty Specific Plan from 20 dwelling units per acre to a minimum of 30 dwelling units per acre to align with Implementation Program D and a public comment received from a member representing the interests of the property owner during the 30-day public comment period;
• Revised the housing density used for the calculation of projected housing units in the Site Inventory from the maximum density to the typical density, to be consistent with the 2040 General Plan Residential Buildout;

Page 35 ends

• Increased the maximum housing density within the Affordable Housing Overlay Zone (AHOZ) from 20 dwelling units per acre to 40 dwelling units per acre to area to align with Implementation Program BF;
• Modified the distribution for each income category to be consistent with the HCD Housing Element Site Inventory Guidebook, which allows jurisdictions to use a higher density (default density of 30 dwelling units per acre) as a proxy for lower income affordability; • Created a Senate Bill 9 (SB 9) unit projection;
• Modified the number of housing units generated in the Pipeline Projects based on the creation of a new SB 9 projection, Planning applications that have been withdrawn, and projects that have received their Certificate of Use and Occupancy; • Decreased the overall total number of housing units in the Site Inventory from 2,448 units to 2,371 units, as a result of the changes listed above; and • Created a separate Appendix H, Site Inventory Form per HCD formatting requirements.

On November 9, 2022, Town staff hosted a booth at the Los Gatos Farmers’ Market to provide the public an opportunity to discuss the Draft Housing Element that was submitted to HCD for preliminary review.

On November 15, 2022, a Renter’s Survey was published on the Housing Element Update website and made available in hard copies at the Community Development Department and Town Library. The survey is available in English, Spanish, and Russian in both the electronic and hard copy versions.

On November 17, 2022, the HEAB meeting was rescheduled by staff to December 1, 2022, due to the meeting being cancelled as a result of the Town’s website being down and the agenda being unavailable to members of the public.

On November 18, 2022, Town staff hosted an informational table at the Town Library to provide the public an opportunity to discuss the Draft Housing Element and publicize the availability of the Renter’s Survey.

On December 1, 2022, the HEAB discussed anticipated comments on the Draft Housing Element based on comments other jurisdictions have received from HCD on their Draft Housing Element.

On December 11, 2022, Town staff hosted a booth at the Los Gatos Farmers’ Market to provide the public an opportunity to discuss the Draft Housing Element.

On December 13, 2022, Town staff met with our HCD reviewer and received verbal, preliminary input on the Draft Housing Element.

On December 20, 2022, the Town Council recommended that the current version of the Draft 2023-2031 Housing Element as submitted to HCD on October 14, 2022, be adopted prior to the statutory deadline of January 31, 2023. In addition, the Town Council recommended that the Sites Inventory of the Housing Element utilize the minimum density, requiring additional sites to be added in order to comply with the Town’s RHNA and buffer.

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Sites Inventory Analysis D

APPENDIX
EXHIBIT 4 Page 37
Appendix D. Sites 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 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 2,312 units (1,993 units plus a 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. Sites 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. Sites 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: 5
“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 five housing units developed at a minimum density of 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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D-2 Appendix D October 2022
Site A-2 South Santa Cruz Avenue
Address: 101 South Santa Cruz Avenue
Number of Housing Units: 16
“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 16 housing units developed at a minimum density of 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)

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Appendix D. Sites Inventory Analysis
October 2022 Appendix D D-1
Site A-3 University Avenue
Address: 165 Los Gatos-Saratoga Road
Number of Housing Units: 7
“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 seven housing units developed at a minimum density of 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. Sites Inventory Analysis
October 2022 Appendix D D-1
Site B-1 Los Gatos Lodge
Address: 50 Los Gatos-Saratoga Road
Number of Housing Units: 264
“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 264 housing units developed at a minimum density of 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. Sites Inventory Analysis
October 2022 Appendix D D-1
Site C-1 Ace Hardware
Address: 15300 Los Gatos Boulevard
Number of Housing Units: 48
“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 48 housing units developed at a minimum density of 30 du/ac.

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

Figure D-9 Ace Hardware (Site C-1)

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D-2 Appendix D October 2022
Site C-2 Los Gatos Boulevard
Address: 15349, 15367, and 15405 Los Gatos Boulevard
Number of Housing Units: 86
“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 86 housing units developed at a minimum density of 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. Sites Inventory Analysis
October 2022 Appendix D D-1
Site C-3 Los Gatos Boulevard
Address: 15425 Los Gatos Boulevard
Number of Housing Units: 33
“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 33 housing units developed at a minimum density of 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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D-2 Appendix D October 2022
Site C-4 Affordable Treasures
Address: 15795 Los Gatos Boulevard
Number of Housing Units: 19
“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 19 housing units developed at a minimum density of 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. Sites Inventory Analysis
October 2022 Appendix D D-1
Site C-5 Los Gatos Boulevard
Address: 16203 Los Gatos Boulevard
Number of Housing Units: 24
“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 24 housing units developed at a minimum density of 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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D-2 Appendix D October 2022
Site C-6 Los Gatos Boulevard
Address: 16492 Los Gatos Boulevard
Number of Housing Units: 6
“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 six housing units developed at a minimum density of 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 would require demolition.

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

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Appendix D. Sites 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. Sites Inventory Analysis
October 2022 Appendix D D-1
Figure D-17 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-18 North Forty Phase II (Site D-1)

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Appendix D. Sites 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-19 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-20 North Forty Phase II (Site D-3)

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Appendix D. Sites 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-21 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-22 North Forty Phase II (Site D-5)

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Appendix D. Sites 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-23 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-24 North Forty Phase II (Site D-7)

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Appendix D. Sites Inventory Analysis
October 2022 Appendix D D-1
Figure D-25 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: 124
“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 124 housing units developed at a typical density of four du/ac for parcels designated as Low-Density Residential and at a minimum density of 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-26 Lark Avenue (Site E-1)

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Appendix D. Sites 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-27 Oka Lane (Site E-2)

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Site E-3 Caltrans Right of Way
Address: Caltrans Right of Way
Number of Housing Units: 69
“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 69 housing units developed at a minimum density of 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-28 Caltrans Right of Way (Site E-3)

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Appendix D. Sites Inventory Analysis
October 2022 Appendix D D-1
Figure D-29 Winchester Boulevard Area

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D-2 Appendix D October 2022
Site F-1 Knowles Drive
Address: 110 Knowles Drive
Number of Housing Units: 220
“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 220 housing units developed at a minimum density of 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-30 Knowles Drive (Site F-1)

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Appendix D. Sites Inventory Analysis
October 2022 Appendix D D-1
Site F-2 Winchester Boulevard
Address: 206 Knowles Drive
Number of Housing Units: 72
“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 72 housing units developed at a minimum density of 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-31 Winchester Boulevard (Site F-2)

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D-2 Appendix D October 2022
Figure D-32 Union Avenue Area

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Appendix D. Sites 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: 8
“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 eight housing units developed at a minimum density of 10 du/ac.

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

Figure D-33 Los Gatos-Almaden Road (Site G-1)

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D-2 Appendix D October 2022
Figure D-34 Harwood Road Area

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Appendix D. Sites Inventory Analysis
October 2022 Appendix D D-1
Site H-1 Valero
Address: 14000 Blossom Hill Road
Number of Housing Units: 7
“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 seven housing units developed at a minimum density of 10 du/ac.

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

Figure D-35 Valero (Site H-1)

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HCD Draft Initial Review 2023-2031 Housing Element
D-2 Appendix D October 2022
Figure D-36 Alberto Way Area

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Appendix D. Sites Inventory Analysis
October 2022 Appendix D D-1
Site I-1 Alberto Way
Address: 401-409 Alberto Way
Number of Housing Units: 60
“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 60 housing units developed at a density of 27 du/ac based on a development application submitted by the properyt owner to the Town on December 6, 2022.

Property Owner Interest Form Submitted: Yes
Constraints: Proximity to adjacent Highway 17 onramp.

Figure D-37 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

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Appendix D. Sites 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 16 percent above RHNA, which would equal capacity of approximately 319 additional units. These sites, in addition to Accessory Dwelling Units Projections, Senate Bill 9 Projections, and Pipeline Projects have a total capacity of 2,312 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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Sites Inventory Form H

APPENDIX
EXHIBIT 5 Page 79
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
Jurisidiction 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

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Table A: Housing Element Sites Inventory, Table Starts in Cell A2 For Santa Clara County jurisdictions, please format the APNs as follows: 999-99-999 Jurisdiction Name Site Address/Intersection 5 Digit
ZIP Code
Assessor
Parcel Number
Consolidated
Sites
General Plan Designation
(Current)
Zoning Designation
(Current)
Minimum
Density
Allowed
(units/acre)
Maximum
Density
Allowed
(units/acre)
Parcel
Size
(Acres)
Existing
Use/Vacancy Infrastructure Publicly-Owned Site Status Identified in Last/Last Two Planning Cycle(s) Lower
Income
Capacity
Moderate
Income
Capacity
Above
Moderate
Income
Capacity
Total
Capacity Optional Information1 Optional Information2 Optional Information3 LOS GATOS 50 Park Avenue 95030 529-01-040 A Medium Density Residential R-1D 5 12 0.18 Residential YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element 0 0 1 1 Site A-1 consolidated parcels Property Owner Interest Form Submitted LOS GATOS 61 Montebello Way 95030 529-01-041 A Medium Density Residential R-1D 5 12 0.69 Residential YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element 0 0 4 4 Site A-1 consolidated parcels Property Owner Interest Form Submitted LOS GATOS 101 South Santa Cruz Avenue 95030 529-01-022 Central Business District C-2 20 30 0.8 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element 0 0 16 16 Site A-2 Property Owner Interest Form Submitted LOS GATOS 165 Los Gatos Saratoga Road 95030 529-04-083 Central Business District C-2 20 30 0.37 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element 0 0 7 7 Site A-3 Property Owner Interest Form Submitted LOS GATOS 50 Los Gatos Saratoga Road 95030 529-24-032 B Mixed Use Commercial CH:PD 30 40 7.04 Hotel/motel YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element 151 51 9 211 Site B-1 consolidated parcels Property Owner Interest Form Submitted LOS GATOS Los Gatos Saratoga Road 95030 529-24-001 B Mixed Use Commercial CH:PD 30 40 1.49 Hotel/motel YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element 18 9 18 45 Site B-1 consolidated parcels Property Owner Interest Form Submitted LOS GATOS Los Gatos Saratoga Road 95030 529-24-003 B Mixed Use Commercial CH:PD 30 40 0.28 Hotel/motel YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element 3 2 3 8 Site B-1 consolidated parcels Property Owner Interest Form Submitted LOS GATOS 15300 Los Gatos Bouelvard 95032 424-17-036 Mixed Use Commercial C-1 30 40 1.6 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element 33 9 6 48 Site C-1 Property Owner Interest Form Submitted LOS GATOS 15349 Los Gatos Bouelvard 95032 424-19-049 C Mixed Use Commercial CH 30 40 0.34 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element 7 2 1 10 Site C-2 consolidated parcels Property Owner Interest Form Submitted LOS GATOS Los Gatos Bouelvard 95032 424-19-048 C Mixed Use Commercial CH 30 40 1.2 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element 26 8 2 36 Site C-2 consolidated parcels Property Owner Interest Form Submitted LOS GATOS Los Gatos Bouelvard 95032 424-19-069 C Mixed Use Commercial CH 30 40 1.34 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element 28 8 4 40 Site C-2 consolidated parcels Property Owner Interest Form Submitted LOS GATOS 15425 Los Gatos Bouelvard 95032 424-19-067 Mixed Use Commercial CH 30 40 1.09 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element 23 7 3 33 Site C-3 Property Owner Interest Form Submitted LOS GATOS 15975 Los Gatos Boulevard 95032 529-15-059 Mixed Use Commercial CH 30 40 0.64 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element 13 4 2 19 Site C-4 Property Owner Interest Form Submitted LOS GATOS 16203 Los Gatos Bouelvard 95032 529-16-069 Mixed Use Commercial CH 30 40 0.79 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element 17 5 2 24 Site C-5 Conceptual Development Advisory Committee application for a mixed-use development submitted on 11/17/2020 anticipating for increased density per the General Plan update LOS GATOS 16492 Los Gatos Bouelvard 95032 532-07-086 D Low Density Residential C-1 10 20 0.23 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element 0 0 2 2 Site C-6 consolidated parcels Property Owner Interest Form Submitted LOS GATOS Los Gatos Bouelvard 95032 532-07-085 D Low Density Residential C-1 10 20 0.38 Vacant YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element 0 0 4 4 Site C-6 consolidated parcels Property Owner Interest Form Submitted LOS GATOS 15495 Los Gatos Bouelvard 95032 424-22-030 Mixed Use Commercial CH 30 40 3.85 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element 81 23 12 116 Site C-7 Property Owner contacted staff with inquiry on residential development LOS GATOS 15445 Los Gatos Bouelvard 95032 424-19-068 Mixed Use Commercial CH 30 40 1.53 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element 32 9 5 46 Site C-8 Adjacent to sites within the Site Inventory LOS GATOS 14859 Los Gatos Boulevard 95032 424-07-094 E North Forty Specific Plan North Forty Specific Plan 30 30 2.9 Residential YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant 57 13 17 87 Site D-1 consolidated parcels Property Owner has been involved in submitting public comments on the Housing Element Update regarding residential development on the site LOS GATOS 16392 Los Gatos Boulevard 95032 424-07-095 E North Forty Specific Plan North Forty Specific Plan 30 30 0.78 Vacant YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant 15 3 5 23 Site D-1 consolidated parcels Property Owner has been involved in submitting public comments on the Housing Element Update regarding residential development on the site LOS GATOS 16260 Burton Road 95032 424-07-053 E North Forty Specific Plan North Forty Specific Plan 30 30 0.44 Residential YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant 8 2 3 13 Site D-1 consolidated parcels Property Owner has been involved in submitting public comments on the Housing Element Update regarding residential development on the site LOS GATOS 16250 Burton Road 95032 424-07-009 E North Forty Specific Plan North Forty Specific Plan 30 30 0.44 Residential YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant 8 2 3 13 Site D-1 consolidated parcels Property Owner has been involved in submitting public comments on the Housing Element Update regarding residential development on the site LOS GATOS 14917 Los Gatos Boulevard 95032 424-07-081 E North Forty Specific Plan North Forty Specific Plan 30 30 3.74 Residential YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant 73 17 22 112 Site D-1 consolidated parcels Property Owner has been involved in submitting public comments on the Housing Element Update regarding residential development on the site LOS GATOS 14925 Los Gatos Boulevard 95032 424-07-115 E North Forty Specific Plan North Forty Specific Plan 30 30 6.07 Residential YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant 118 27 37 182 Site D-1 consolidated parcels Property Owner has been involved in submitting public comments on the Housing Element Update regarding residential development on the site LOS GATOS Los Gatos Boulevard 95032 424-07-116 E North Forty Specific Plan North Forty Specific Plan 30 30 1.02 Vacant YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant 20 5 6 31 Site D-1 consolidated parcels Property Owner has been involved in submitting public comments on the Housing Element Update regarding residential development on the site LOS GATOS 16245 Burton Road 95032 424-06-115 North Forty Specific Plan North Forty Specific Plan 30 30 1.17 Residential YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant 23 5 7 35 Site D-2 consolidated parcels No; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underway LOS GATOS Burton Road 95032 424-06-116 North Forty Specific Plan North Forty Specific Plan 30 30 0.11 Vacant YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant 2 0 1 3 Site D-2 consolidated parcels No; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underway LOS GATOS 16240 Burton Road 95032 424-07-010 North Forty Specific Plan North Forty Specific Plan 30 30 0.26 Residential YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant 5 1 2 8 Site D-3 No; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underway LOS GATOS 16270 Burton Road 95032 424-07-052 North Forty Specific Plan North Forty Specific Plan 30 30 0.43 Residential YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant 8 2 3 13 Site D-4 No; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underway LOS GATOS 16210 Burton Road 95032 424-07-054 North Forty Specific Plan North Forty Specific Plan 30 30 0.26 Residential YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant 5 1 2 8 Site D-5 consolidated parcels No; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underway LOS GATOS 14831 Los Gatos Boulevard 95032 424-07-063 North Forty Specific Plan North Forty Specific Plan 30 30 0.56 Residential YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant 11 3 3 17 Site D-5 consolidated parcels No; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underway LOS GATOS 14849 Los Gatos Boulevard 95032 424-07-064 North Forty Specific Plan North Forty Specific Plan 30 30 0.93 Residential YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant 18 4 6 28 Site D-6 No; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underway LOS GATOS 14823 Los Gatos Boulevard 95032 424-07-065 North Forty Specific Plan North Forty Specific Plan 30 30 0.37 Residential YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant 6 1 4 11 Site D-7 No; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underway LOS GATOS 14800 Oka Road 95032 424-08-057 Low Density Residential R-1:8 0 5 2.97 Vacant YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant 0 1 11 12 Site E-1 consolidated parcels No; however the property owner has submitted a public comment to the HEAB regarding future development of the site.

LOS GATOS Oka Lane 95032 424-08-029 Low Density Residential R-1:8 0 5 0.31 Vacant YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element 0 0 1 1 Site E-1 consolidated parcels No; however the property owner has submitted a public comment to the HEAB regarding future development of the site.

LOS GATOS Oka Lane 95032 424-08-059 Low Density Residential R-1:8 0 5 1.01 Vacant YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element 0 0 4 4 Site E-1 consolidated parcels No; however the property owner has submitted a public comment to the HEAB regarding future development of the site.

LOS GATOS Oka Lane 95032 424-08-060 Low Density Residential R-1:8 0 5 1.29 Vacant YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element 0 0 5 5 Site E-1 consolidated parcels No; however the property owner has submitted a public comment to the HEAB regarding future development of the site.

LOS GATOS 14800 Oka Road 95032 424-08-058 Low Density Residential R-1:8 0 5 1.41 Residential YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element 0 0 6 6 Site E-1 consolidated parcels No; however the property owner has submitted a public comment to the HEAB regarding future development of the site.

LOS GATOS 16603 Lark Avenue 95032 424-08-017 Medium Density Residential R-M:5-12 14 22 2.48 Residential YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element 3 3 29 35 Site E-1 consolidated parcels No; however the property owner has submitted a public comment to the HEAB regarding future development of the site.

LOS GATOS 14840 Oka Road 95032 424-08-021 Medium Density Residential R-M:5-12 14 22 4.32 Vacant YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant 6 6 49 61 Site E-1 consolidated parcels No; however the property owner has submitted a public comment to the HEAB regarding future development of the site.

LOS GATOS Oka Lane 95032 424-08-074 Low Density Residential R-1:8 0 5 6.41 Vacant YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant 2 1 23 26 Site E-2 No; however the property owner has submitted a public comment to the HEAB regarding future development of the site.

LOS GATOS Oka Road (Cal Trans ROW) 95032 000-00-000 Medium Density Residential R-1:8 14 22 4.9 Vacant YES - Current YES - State-Owned Available Not Used in Prior Housing Element 7 7 55 69 Site E-3 LOS GATOS 110 Knowles Drive 95032 424-32-077 High Density Residential CM:AHOZ 30 40 7.34 Commercial YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant 106 79 35 220 Site F-1 No; however the site is located within the Affordable Housing Overlay Zone.

LOS GATOS 206 Knowles Drive 95032 424-32-076 High Density Residential CM 30 40 2.41 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element 35 26 11 72 Site F-2 No; however, the site is located immediately adjacent to 110 Knowles Drive (Site F-1), which has an Affordable Housing Overlay Zone.

LOS GATOS 440 Los Gatos Almaden Road 95032 527-49-048 Neighborhood Commercial C-1 10 20 0.52 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element 0 0 5 5 Site G-1 consolidated parcels Property Owner Interest Form Submitted LOS GATOS 445 Leigh Avenue 95032 527-49-049 Neighborhood Commercial C-1 10 20 0.29 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element 0 0 3 3 Site G-1 consolidated parcels Property Owner Interest Form Submitted

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Table B: Candidate Sites Identified to be Rezoned to Accommodate Shortfall Housing Need, Table Starts in Cell A2 For Santa Clara County jurisdictions, please format the APNs as follows: 999-99-999 Jurisdiction Name Site Address/Intersection 5 Digit ZIP Code
Assessor Parcel
Number
Very LowIncome Low-Income ModerateIncome
Above
ModerateIncome
Type of Shortfall Parcel Size
(Acres)
Current General
Plan Designation Current Zoning
Proposed General
Plan (GP)
Designation
Proposed Zoning
Minimum
Density
Allowed
Maximum
Density
Allowed
Total Capacity Vacant/
Nonvacant
Description of
Existing Uses Infrastructure Optional Information1 Optional Information2 Optional Information3 LOS GATOS 50 Park Avenue 95030 529-01-040 0 0 0 1 Shortfall of Sites 0.18 Medium Density ResidR-1D Medium Density ResidR-1D 5 12 1 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 61 Montebello Way 95030 529-01-041 0 0 0 4 Shortfall of Sites 0.69 Medium Density ResidR-1D Medium Density ResidR-1D 5 12 4 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 101 S. Santa Cruz Avenue 95030 529-01-022 0 0 0 16 Shortfall of Sites 0.8 Central Business Dist C-2 Central Business Dist C-2 20 30 16 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 165 Los Gatos-Saratoga Road 95030 529-04-083 0 0 0 7 Shortfall of Sites 0.37 Central Business Dist C-2 Central Business Dist C-2 20 30 17 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 50 Los Gatos-Saratoga Road 95030 529-24-032 76 75 51 9 Shortfall of Sites 7.04 Mixed Use Commerci CH:PD Mixed Use Commerci CH:PD 30 40 211 Non-Vacant Hotel/motel YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS Los Gatos-Saratoga Road 95030 529-24-001 9 9 9 18 Shortfall of Sites 1.49 Mixed Use Commerci CH:PD Mixed Use Commerci CH:PD 30 40 45 Non-Vacant Hotel/motel YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS Los Gatos-Saratoga Road 95030 529-24-003 1 2 2 3 Shortfall of Sites 0.28 Mixed Use Commerci CH:PD Mixed Use Commerci CH:PD 30 40 8 Non-Vacant Hotel/motel YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 15300 Los Gatos Boulevard 95032 424-17-036 24 9 9 6 Shortfall of Sites 1.6 Mixed Use Commerci C-1 Mixed Use Commerci C-1 30 40 48 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 15349 Los Gatos Boulevard 95032 424-19-049 5 2 2 1 Shortfall of Sites 0.34 Mixed Use Commerci CH Mixed Use Commerci CH 30 40 10 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 15367 Los Gatos Boulevard 95032 424-19-048 18 8 8 2 Shortfall of Sites 1.2 Mixed Use Commerci CH Mixed Use Commerci CH 30 40 36 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 15405 Los Gatos Boulevard 95032 424-19-069 20 8 8 4 Shortfall of Sites 1.34 Mixed Use Commerci CH Mixed Use Commerci CH 30 40 40 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 15425 Los Gatos Boulevard 95032 424-19-067 16 7 7 3 Shortfall of Sites 1.09 Mixed Use Commerci CH Mixed Use Commerci CH 30 40 33 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 15795 Los Gatos Boulevard 95032 529-15-059 9 4 4 2 Shortfall of Sites 0.64 Mixed Use Commerci CH Mixed Use Commerci CH 30 40 19 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 16203 Los Gatos Boulevard 95032 529-16-069 12 5 5 2 Shortfall of Sites 0.79 Mixed Use Commerci CH Mixed Use Commerci CH 30 40 24 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 16492 Los Gatos Boulevard 95032 532-07-086 0 0 0 2 Shortfall of Sites 0.23 Low Density Resident C-1 Low Density Resident C-1 10 20 2 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS Los Gatos Boulevard 95032 532-07-085 0 0 0 4 Shortfall of Sites 0.38 Neighborhood Comm C-1 Neighborhood Comm C-1 10 20 4 Vacant Vacant YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 15495 Los Gatos Bouelvard 95032 424-22-030 58 23 23 12 Shortfall of Sites 3.85 Mixed Use Commerci CH Mixed Use Commerci CH 30 40 116 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 15445 Los Gatos Bouelvard 95032 424-19-068 23 9 9 5 Shortfall of Sites 1.53 Mixed Use Commerci CH Mixed Use Commerci CH 30 40 46 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 14859 Los Gatos Boulevard 95032 424-07-094 44 13 13 17 Shortfall of Sites 2.9 North Forty Specific PNorth Forty Specific PNorth Forty Specific PNorth Forty Specific P 30 30 87 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 16392 Los Gatos Boulevard 95032 424-07-095 12 3 3 5 Shortfall of Sites 0.78 North Forty Specific PNorth Forty Specific PNorth Forty Specific PNorth Forty Specific P 30 30 23 Non-Vacant Vacant YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 16260 Burton Road 95032 424-07-053 6 2 2 3 Shortfall of Sites 0.44 North Forty Specific PNorth Forty Specific PNorth Forty Specific PNorth Forty Specific P 30 30 13 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 16250 Burton Road 95032 424-07-009 6 2 2 3 Shortfall of Sites 0.44 North Forty Specific PNorth Forty Specific PNorth Forty Specific PNorth Forty Specific P 30 30 13 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 14917 Los Gatos Boulevard 95032 424-07-081 56 17 17 22 Shortfall of Sites 3.74 North Forty Specific PNorth Forty Specific PNorth Forty Specific PNorth Forty Specific P 30 30 112 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 14925 Los Gatos Boulevard 95032 424-07-115 91 27 27 37 Shortfall of Sites 6.07 North Forty Specific PNorth Forty Specific PNorth Forty Specific PNorth Forty Specific P 30 30 182 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS Los Gatos Boulevard 95032 424-07-116 15 5 5 6 Shortfall of Sites 1.02 North Forty Specific PNorth Forty Specific PNorth Forty Specific PNorth Forty Specific P 30 30 31 Non-Vacant Vacant YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 16245 Burton Road 95032 424-06-115 18 5 5 7 Shortfall of Sites 1.17 North Forty Specific PNorth Forty Specific PNorth Forty Specific PNorth Forty Specific P 30 30 35 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS Burton Road 95032 424-06-116 2 0 0 1 Shortfall of Sites 0.11 North Forty Specific PNorth Forty Specific PNorth Forty Specific PNorth Forty Specific P 30 30 3 Vacant Vacant YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 16240 Burton Road 95032 424-07-010 4 1 1 2 Shortfall of Sites 0.26 North Forty Specific PNorth Forty Specific PNorth Forty Specific PNorth Forty Specific P 30 30 8 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 16270 Burton Road 95032 424-07-052 6 2 2 3 Shortfall of Sites 0.43 North Forty Specific PNorth Forty Specific PNorth Forty Specific PNorth Forty Specific P 30 30 13 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 16210 Burton Road 95032 424-07-054 4 1 1 2 Shortfall of Sites 0.26 North Forty Specific PNorth Forty Specific PNorth Forty Specific PNorth Forty Specific P 30 30 8 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 14831 Los Gatos Boulevard 95032 424-07-063 8 3 3 3 Shortfall of Sites 0.56 North Forty Specific PNorth Forty Specific PNorth Forty Specific PNorth Forty Specific P 30 30 17 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 14849 Los Gatos Boulevard 95032 424-07-064 14 4 4 6 Shortfall of Sites 0.93 North Forty Specific PNorth Forty Specific PNorth Forty Specific PNorth Forty Specific P 30 30 28 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 14823 Los Gatos Boulevard 95032 424-07-065 5 1 1 4 Shortfall of Sites 0.37 North Forty Specific PNorth Forty Specific PNorth Forty Specific PNorth Forty Specific P 30 30 11 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 14800 Oka Road 95032 424-08-057 0 0 1 11 Shortfall of Sites 2.97 Low Density Resident R-1:8 Low Density Resident R-1:8 0 5 12 Vacant Vacant YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS Oka Lane 95032 424-08-029 0 0 0 1 Shortfall of Sites 0.31 Low Density Resident R-1:8 Low Density Resident R-1:8 0 5 1 Vacant Vacant YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS Oka Lane 95032 424-08-059 0 0 0 4 Shortfall of Sites 1.01 Low Density Resident R-1:8 Low Density Resident R-1:8 0 5 4 Vacant Vacant YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS Oka Lane 95032 424-08-060 0 0 0 5 Shortfall of Sites 1.29 Low Density Resident R-1:8 Low Density Resident R-1:8 0 5 5 Vacant Vacant YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 14800 Oka Road 95032 424-08-058 0 0 0 6 Shortfall of Sites 1.41 Low Density Resident R-1:8 Low Density Resident R-1:8 0 5 6 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 16603 Lark Avenue 95032 424-08-017 0 3 3 29 Shortfall of Sites 2.48 Medium Density ResidR-M:5-12 Medium Density ResidR-M:5-12 14 22 35 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 14840 Oka Road 95032 424-08-021 0 6 6 49 Shortfall of Sites 4.32 Medium Density ResidR-M:5-12 Medium Density ResidR-M:5-12 14 22 61 Vacant Vacant YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS Oka Lane 95032 424-08-074 0 2 1 23 Shortfall of Sites 6.41 Low Density Resident R-1:8 Low Density Resident R-1:8 0 5 26 Vacant Vacant YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS Oka Road (Cal Trans ROW) 95032 000-00-000 0 7 7 55 Shortfall of Sites 4.9 Medium Density ResidR-1:8 Medium Density ResidR-1:8 14 22 69 Vacant Vacant YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 110 Knowles Drive 95032 424-32-077 66 40 79 35 Shortfall of Sites 7.34 High Density Residen CM:AHOZ High Density Residen CM:AHOZ 30 40 220 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 206 Knowles Drive 95032 424-32-076 22 13 26 11 Shortfall of Sites 2.41 High Density Residen CM High Density Residen CM 30 40 72 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 440 Los Gatos Almaden Road 95032 527-49-048 0 0 0 5 Shortfall of Sites 0.52 Neighborhood Comm C-1 Neighborhood Comm C-1 10 20 5 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation program LOS GATOS 445 Leigh Avenue 95032 527-49-049 0 0 0 3 Shortfall of Sites 0.29 Neighborhood Comm C-1 Neighborhood Comm C-1 10 20 3 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation program 3

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Table C: Land Use, Table Starts in A2
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 mixed-use 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 singlefamily, 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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TOWN OF LOS GATOS

PLANNING COMMISSION
REPORT
MEETING DATE: 01/11/2023
ITEM NO: 5

ADDENDUM
DATE: January 10, 2023
TO: Planning Commission
FROM: Joel Paulson, Community Development Director
SUBJECT: Consider and Make a Recommendation to the Town Council on the Draft 2023-2031 Housing Element. Location: Town-Wide. General Plan Amendment Application GP-22-003.

REMARKS:

Exhibit 6 includes Planning Commissioner comments.

EXHIBITS:

Previously received (available online here: https://engagelosgatoshousing.com):

1. Draft 2023-2031 Housing Element

2. Environmental Analysis
Previously received with the January 11, 20223 Staff Report:

3. Housing Element Update Process Timeline

4. Revised Appendix D, Sites Inventory Analysis

5. Revised Appendix H, Sites Inventory Form
Received with this Addendum:

6. Planning Commissioner Comments
ATTACHMENT 7

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From: Jeffrey Barnett < >
Sent: Saturday, January 7, 2023 3:01:21 PM
To: Jocelyn Shoopman <[email protected]>; Jennifer Armer <[email protected]> Subject: Proposed Revisions to the 2023-2031 Housing Element - Policy HE-6.1, Page 10-38

EXTERNAL SENDER
Dear Jocelyn and Jennifer.

Would you kindly include the attachment as a Desk Item for Agenda Item 5 on Wednesday? Thanks in advance.

Jeffrey
EXHIBIT 6

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Proposed Changes to the Los Gatos Draft Housing Element 6th Cycle 2023-2031 Policy HE-6.1 Fair Housing Page 10.38.

Current Language:

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.

Proposed revisions:

1. After “sexual orientation” add “gender identification or expression”. It may be covered under the term “sex”, but that is not clear. In CC 51(e)(5), sex is expressly defined to include gender identification and expression, but this policy does not completely track Section 51.

2. Add “genetic information”.

3. Add “primary language”.

4. Add “citizenship”.

5. Change disability/medical condition” to “disability, medical condition”.

6. Add “immigration status”

7. Consider adding “military or veteran status”.

8. Change “other factors” to “other arbitrary factors”. Marina Point , Ltd. V.

Wolfson (1982) 30 Cal3rd 721, 736.

These recommendations are based on the following:

A. California Civil Code Section 51:
(a) This section shall be known, and may be cited, as the Unruh Civil Rights Act. (b) All persons within the jurisdiction of this state are free and equal, and no matter what their sex, race, color, religion, ancestry, national origin, disability, medical condition, genetic information, marital status, sexual orientation, citizenship, primary language, or immigration status are entitled to the full and

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equal accommodations, advantages, facilities, privileges, or services in all business establishments of every kind whatsoever.
(c) This section shall not be construed to confer any right or privilege on a person that is conditioned or limited by law or that is applicable alike to persons of every sex, color, race, religion, ancestry, national origin, disability, medical condition, marital status, sexual orientation, citizenship, primary language, or immigration status, or to persons regardless of their genetic information. (d) Nothing in this section shall be construed to require any construction, alteration, repair, structural or otherwise, or modification of any sort whatsoever, beyond that construction, alteration, repair, or modification that is otherwise required by other provisions of law, to any new or existing establishment, facility, building, improvement, or any other structure, nor shall anything in this section be construed to augment, restrict, or alter in any way the authority of the State Architect to require construction, alteration, repair, or modifications that the State Architect otherwise possesses pursuant to other laws.
(e) For purposes of this section:
(1) “Disability” means any mental or physical disability as defined in Sections 12926 and 12926.1 of the Government Code.
(2) (A) “Genetic information” means, with respect to any individual, information about any of the following:
(i) The individual’s genetic tests.
(ii) The genetic tests of family members of the individual. (iii) The manifestation of a disease or disorder in family members of the individual.
(B) “Genetic information” includes any request for, or receipt of, genetic services, or participation in clinical research that includes genetic services, by an individual or any family member of the individual.
(C) “Genetic information” does not include information about the sex or age of any individual.
(3) “Medical condition” has the same meaning as defined in subdivision (i) of Section 12926 of the Government Code.

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(4) “Religion” includes all aspects of religious belief, observance, and practice. (5) “Sex” includes, but is not limited to, pregnancy, childbirth, or medical conditions related to pregnancy or childbirth. “Sex” also includes, but is not limited to, a person’s gender. “Gender” means sex and includes a person’s gender identity and gender expression. “Gender expression” means a person’s genderrelated appearance and behavior whether or not stereotypically associated with the person’s assigned sex at birth.
(6) “Sex, race, color, religion, ancestry, national origin, disability, medical condition, genetic information, marital status, sexual orientation, citizenship, primary language, or immigration status” includes a perception that the person has any particular characteristic or characteristics within the listed categories or that the person is associated with a person who has, or is perceived to have, any particular characteristic or characteristics within the listed categories. (7) “Sexual orientation” has the same meaning as defined in subdivision (s) of Section 12926 of the Government Code.
(f) A violation of the right of any individual under the federal Americans with Disabilities Act of 1990 (Public Law 101-336) shall also constitute a violation of this section.
(g) Verification of immigration status and any discrimination based upon verified immigration status, where required by federal law, shall not constitute a violation of this section.

B. Government Code Section 1139.8(a)(2): “California’s robust nondiscrimination laws include protections on the basis of sexual orientation, gender identity and gender expression, among other characteristics”.

C. Government Code 12920:
“Further, the practice of discrimination because of race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, veteran or military status, or genetic information in housing accommodations is declared to be against public policy.

D. AFFH Report, Appendix A at Page 65
A.6 Fair Housing Enforcement and Outreach Capacity

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“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).

E. https://calcivilrights.ca.gov/housing/#whoBody:

California law protects individuals from illegal discrimination by housing providers based on the following:

Race, color
Ancestry, national origin
Citizenship, immigration status
Primary language*
Age
Religion
Disability, mental or physical
Sex, gender
Sexual orientation
Gender identity, gender expression
Genetic information
Marital status
Familial status
Source of income
Military or veteran status
F. Protection against discrimination on the basis of gender identification or expression is also present in laws found in the Education Code, Insurance Code, Welfare and Institutions Code and the Health and Safety Code.

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LOS GATOS PLANNING COMMISSION 1/11/2023
Item #5, General Plan Amendment
re: Draft 2023-2031 Housing Element
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A P P E A R A N C E S:

Los Gatos Planning
Commissioners:

Melanie Hanssen, Chair
Jeffrey Barnett, Vice Chair
Susan Burnett
Kylie Clark
Kathryn Janoff
Steve Raspe
Emily Thomas
Town Manager: Laurel Prevetti
Community Development
Director:

Joel Paulson
Town Attorney: Gabrielle Whelan
Transcribed by: Vicki L. Blandin
(619) 541-3405
ATTACHMENT 8

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P R O C E E D I N G S:

CHAIR HANSSEN: We will go ahead to Item 5, and
Item 5 is to consider and make a recommendation to the Town Council on the Draft 2023-2031 Housing Element. Location:

Town-wide. General Plan Amendment Application: GP-22-003.

Who is doing the Staff Report? Oh, Ms. Walters.

ERIN WALTERS: Thank you so much and good
evening, Commissioners. The Town of Los Gatos is required to adopt an updated Housing Element for the period covering 2023 to 2031 by January 31st.

Starting in early 2021 the Town worked diligently
to comply to State law with the goal of adopting a Housing Element prior to January 31st. The deadline is outlined in Attachment 3 of your report.

Under the Housing Accountability Act, Bay Area
jurisdictions that have not adopted a Housing Element that is in substantial compliance with the State law by January 31st could be required to approve a residential development, even if it does not meet local General Plan or zoning
regulations. This is known as the Builder’s Remedy and has been in the Housing Accountability Act since 1990. For a project to utilize this it must be a residential

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development that proposes at least 20% low-income units or 100% moderate-income units. No applications under the
Builder’s Remedy were submitted during the two previous Housing Element cycles when the Town missed the statutory deadline for adoption.

Staff recognizes that this current element
housing cycle is unlike any past cycle and any jurisdiction that adopts a housing element later than January 31st could be subject to the Builder’s Remedy.

On January 20th of last year the Town Council
recommended that the current version of the Draft Housing Element as submitted to HCD on October 14th be considered for adoption prior to the statutory deadline of January 31st.

In addition, the Town Council recommended that
the Sites Inventory of the Housing Element utilize the
minimum density requiring additional sites to be added in order to comply with the Town’s RHNA and required buffer.

The primary purpose of this item tonight is to
provide a recommendation to Town Council on whether or not to adopt the Draft Housing Element, which is found in
Attachment 1, with the revised Sites Inventory Analysis, Exhibit 4, and Revised Site Inventory Form, which is found in Exhibit 5.

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The next steps to complete the goal of adopting
the Housing Element that is in substantial compliance with State law by the statutory deadline is for Town Council to consider Planning Commission’s recommendation on the Draft Housing Element at a special Council meeting on January 30th.

The Town expects to receive a comment letter from
HCD tomorrow. Once the HCD comment letter has been
received, a draft memorandum and Response to HCD Comment Letter illustrating how each comment has been responded to and how it is in substantial compliance with State law will be prepared for future view by the Housing Element Advisory Board, and then based on that review and recommendation by HEAB a revised draft will be submitted to HCD. Subsequent review by HCD will take up to 60 days.

Based on HCD’s second review it is possible that
additional revisions may be required before HCD will
certify the Housing Element, which means Planning
Commission and Town Council hearings for adoption of the revised Housing Element would need to be conducted again.

There was an addendum circulated on Tuesday with
the Planning Commission’s comments.

This concludes Staff’s report and we are
available for any questions. Thank you.

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CHAIR HANSSEN: Thank you for your Staff Report.

Since three of us, Commissioner Janoff, Commissioner
Thomas, and I are on the Housing Element Advisory Board as well as the General Plan Committee, I think Ms. Walters and the Staff Report went through this but as should have been clear from the report, this is not intended as a detailed review of the Draft Housing Element. This is more of a
go/no go thing to prevent us from being subject to the
Builder’s Remedy, and as noted by Ms. Walters, we fully would anticipate making quite a few revisions based on the HCD comments.

I will ask if any of you have questions for
Staff? I do, but I wanted to see if any of the rest of you do. Commissioner Janoff.

COMMISSIONER JANOFF: Thank you. I understand the
process; I understand what’s happening. Two questions, one for Staff.

I understand that we received verbal comments. Do
you have any indication based on the verbal comments that our Draft General Plan is not in insubstantial compliance? ERIN WALTERS: The verbal comments we received
were that there is additional work to be done, but the term “substantial compliance” was never brought up or discussed.

It’s really to add to what we have.

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COMMISSIONER JANOFF: Did you get the sense from
that verbal communication that we weren’t on the right
track?
ERIN WALTERS: (Shakes head no.)
COMMISSIONER JANOFF: All right. I know you
didn’t get that kind of feedback precisely, but I was
curious what the sense of the conversation was from Staff’s point of view?
ERIN WALTERS: We had one meeting. We didn’t
receive any fatal flaw comments, but again, we have not received the final letter, and again, we anticipate that hopefully by tomorrow, so from what we’ve learned to date, we have not heard.

COMMISSIONER JANOFF: A second question, if I
might, for our Town Attorney. Would you please advise the Planning Commission as to your opinion of why it makes
sense for us to proceed with a recommendation for adopting the draft in advance of the certified Housing Element?
ATTORNEY WHELAN: It’s definitely a policy
decision, but the recommendation to do this is based on the fact that the deadline to have an adopted Housing Element is January 31st, and after that date applicants can use the Builders Remedy to submit an application that would not be subject to the Town’s planning requirements.

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Added to that recommendation is the fact that the
Town has the ability to amend the Housing Element after it’s been adopted based on feedback that we get from HCD.

COMMISSIONER JANOFF: So this is not a kind of
tricky workaround the deadline, this is a reasonable
approach to meeting the deadline with adopting a draft, understanding that there will be revisions coming following HCD’s comments?
ATTORNEY WHELAN: Yes, the recommendation is
based on the fact that the Draft Housing Element is very close. It’s possible HCD will recommend some minor changes, and the Town would make those minor changes once we have those recommendations in hand.

COMMISSIONER JANOFF: All right, thank you.

CHAIR HANSSEN: Commissioner Thomas.

COMMISSIONER THOMAS: Thank you, Chair. I have
two questions.

My first question for Staff is where will we be
able to find the letter when we get it tomorrow?
ERIN WALTERS: That’s an excellent question. It
will be posted online when we receive it. It will be
available to the public and will be on the Town’s dedicated Housing Element website, as well as our web page.

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JOEL PAULSON: I’ll just add that we’ll also
actually send it directly to Town Council and Planning
Commissioners as well.

COMMISSIONER THOMAS: Thank you. Perfect. Very
exciting. We’ve been waiting for this letter, I know.

My other question was related to the procedure
for making changes. Obviously, if we forward this approval, it goes to Town Council, you explained that. If we have to make changes, will those changes go back to the Housing Element Advisory Board, then to the Planning Commission, then to Town Council? Is that the order that it happens? ERIN WALTERS: I would ask either Ms. Armer or
Mr. Paulson to answer that.

JENNIFER ARMER: I can start by answering that if
the Planning Commission makes a recommendation on this
tonight, or early tomorrow morning, and it wants to include some recommended changes, that is something that could be done; but it also is possible that comments will be shared tonight, for example, those that were included in writing in the Addendum, and that those will be taken into
consideration when we return to the HEAB for their
consideration of additional changes in response to the HCD letter.

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So, if you choose as the Planning Commission to
include modifications as part of your recommendation in this meeting, that could be part of the recommendation, but it also could just be general comments that we could
consider and bring to the HEAB for their consideration and recommendation.

COMMISSIONER THOMAS: Okay, thank you. I don’t
feel like there are any major, necessary changes, and I understand. I guess what I’m asking is if this gets
approved before January 31st, but then we do need to make changes based on our HCD feedback, then it goes back to HEAB, then back to us, then to the Town Council. The
changes need to be approved at those three levels?
JENNIFER ARMER: Thank you for that
clarification. Yes, the next steps would be to go to HEAB, and then to submit that revised document to HCD to see
whether it has addressed their comments and whether they can now certify the Housing Element. If it is certifiable, then it could be forwarded to Planning Commission for
consideration and recommendation to Town Council.

COMMISSIONER THOMAS: Okay, just wanted to
confirm that that was still happening. Okay, thank you.

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CHAIR HANSSEN: If you don’t mind, Commissioner
Janoff, I did want to ask a question before I go back to you.

As a preface statement, on December 1st the
Housing Element Advisory Board—and this is for the benefit of everyone on the Commission and anyone watching—was able to review comment letters that came from HCD to other
jurisdictions, for example, Saratoga, but there were
probably eight or nine different jurisdictions, to get an idea of what we could expect from HCD.

I bring this up to ask the question of Staff,
when we looked at this stuff on December 1st it seemed like one thing that was very consistent is there were definitely modifications that have to happen, but I didn’t see in any of the comment letters where HCD said it could never go and certify it, it wanted modifications versus scraping
something and having to bring something anew.

Based on the conversation that you guys had in
December on the phone, did you hear anything that would lead you to believe that we hadn’t followed the process properly, or was it more like we’re going to have to put in a lot more detailed information similar to what we saw in those comment letters? So that’s my question.

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JOCELYN SHOOPMAN: Thank you for the question. I
would say our verbal conversation with the HCD reviewer really mirrored many of those comment letters that HEAB reviewed in December, and it really was the information is there, however we may need more narrative to describe it, more local knowledge, and more data to back that
information up.

CHAIR HANSSEN: That’s where I’m seeing where we
are right now, that there are going to be a lot of changes that will happen after the 31st whether this is approved or not, and this is sort of a stopgap thing to buy us some time until we can get this certified.

Commissioner Janoff.

COMMISSIONER JANOFF: I appreciate the comments
that Vice Chair Barnett has offered, and I am thinking that rather than forward those changes to Council with our
recommendation tonight that they stay with the general
comments so that could go back through the process that Commissioner Thomas clarified, so that we can consider
those comments with the HEAB and then on to the Planning Commission, to take it through that process of
modification, if that’s acceptable.

CHAIR HANSSEN: I think that’s a good suggestion,
but let’s see where other comments go.

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Commissioner Thomas.

COMMISSIONER THOMAS: I agree with that. I think
that’s a really good idea if Vice Chair Barnett is
comfortable with that and feels we discussed or addressed them enough, because HEAB is going to have to go back and go over and make modifications and recommend adding more detail, as Ms. Shoopman said, so I think that’s a good
idea. I think that’s a way to make things more efficient and streamline the process.

CHAIR HANSSEN: Vice Chair Barnett.

VICE CHAIR BARNETT: Thank you. I first want
thank the members of the GPAC and HEAB for the tremendously wonderful job that they’ve done. I’ve read through the
entire document, and unfortunately haven’t been able to monitor the hearings of HEAB as they’ve progressed, but it is a magnificent document and I’m sure we’re going to get final approval down the road.

In terms of my recommendation, I’m certainly
comfortable with it being considered at any point that it’s easily addressed, and I’m certainly mindful of the January 31st deadline. I did have one other suggested change that I haven’t yet submitted, so that would also be in the way of a recommendation for consideration down the line.

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CHAIR HANSSEN: So it’s not a fatal flaw that
would stand in the way of being able to consider it in
compliance?
VICE CHAIR BARNETT: Absolutely not.

CHAIR HANSSEN: And we’re talking about in
compliance with the process that the State has outlined for doing the Housing Element.

Ms. Armer.

JENNIFER ARMER: Thank you, Chair. Before the
Planning Commission gets too much into discussion I did want to suggest that we open up for public comment if
questions of Staff are complete.

CHAIR HANSSEN: Do other Commissioners have
questions of Staff in terms of process or procedure? And by the way, we will not be going through the entire document; it will be more like general questions. Okay, nobody else has any questions; so let’s do that.

We will do Verbal Communications, so any member
of the public is invited to speak on the Housing Element, and we ask you to limit your comments up to three minutes, and it looks like we have at least one person.

JENNIFER ARMER: Yes, thank you, it looks like
Rigo Gallardo, and you should be able to unmute now. You have up to three minutes.

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RIGO GALLARDO: Good evening, Chair and Members
of the Planning Commission. My name Is Rigo Gallardo, I’m a representative from Carpenter’s Local #405 for Santa Clara County and I’m speaking on behalf of approximately 39,000 union carpenters, men and women across Northern California, including 18,000 Santa Clara County residents and members.

Today I’m here to speak on area labor standards,
ones that include a livable wage, healthcare,
apprenticeships, and local hire.

A livable wage with medical and retirement
benefits that allow workers and their families to live in the communities they work in. This also means those wages will be reinvested back into local economic community as they spend their earnings, and their tax dollars will help fund local schools and government.

A commitment to accredited apprenticeship
programs to guarantee we will continue to have a trained, skilled, and experienced work force that is able to
complete high-quality projects in a safe and timely manner.

Healthcare is vital in these COVID years and
having healthcare for families is a big necessity. I
believe if you work hard full time you should have access to healthcare from your employer.

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Being able to work where you live as a local hire
allows you to spend more time with your family and be more involved in your community. My question to you is what are we doing to implement these area labor standards in our upcoming projects? Thank you.

CHAIR HANSSEN: Thank you for your comments. The
way our Verbal Communications work is we don’t normally answer questions if you have them during the Verbal
Communications, but I don't know if Staff wants to add
anything to that?
JENNIFER ARMER: No, but we can answer questions
during the discussion.

CHAIR HANSSEN: But if any Commissioners have
questions for Mr. Gallardo, we can do that.

Commissioner Thomas.

COMMISSIONER THOMAS: Thank you, Chair. Thank
you, Mr. Gallardo, for staying up late and coming to speak on stuff that is important to us. I wanted to ask if you had any specific requests or anything to do with the
decision that we’re going to be making tonight about the Housing Element, or if your comments are more just general about some of our policies that we’re dealing with in Town right now?
RIGO GALLARDO: Just the policies.

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COMMISSIONER THOMAS: Okay, thank you so much.

CHAIR HANSSEN: Thank you, and just know that
your comments are noted and will be circulated to the place that can help. Thank you.

We have another speaker, Ms. Quintana.

LEE QUINTANA: Wow, thank God this is the last
item on the agenda.

I find this process rather difficult, because it
feels like we’re making comments based on a moving target, which makes it very difficult to make comments, so I will focus my comments on the Implementation section, and I do want to make a few comments.

The Implementation section has over 60
implementation programs, and it seems to me that there are at least eight items that are subject to the use of BMP funds. There are also at least five items that have to do with rehabilitation and repair. There are other groups of items that have to do with outreach to the public and
outreach to the development community.

It seems to me that as a user-friendly document
it would make a lot of sense to revise the organization of the Implementation section to focus on areas of common
concern rather than having rehabilitation issues spread out throughout the document stated in slightly different ways

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to meet slightly different policies but essentially they’re all the same, and I think that’s really important.

One other comment I would specifically make is
Habitat for Humanity is mentioned in the Implementation programs, and I would ask that you recommend to Council that before they specifically mention HFH they verify with HFH that they are willing to participate in rehabilitation and repair programs in Los Gatos, given the fact of the result of their participation in the Dittos Lane project.

It’s my understanding that HFH has decided that it won’t touch anything in Los Gatos in the future. Those are my comments for now.

CHAIR HANSSEN: That’s good information to follow
up on, and as with the General Plan we had a lot of
implementation programs in the General Plan, and so getting them in a good organization so that people can work from them is a very good suggestion.

LEE QUINTANA: Do I have any time? I have one
more thing to say.

CHAIR HANSSEN: Oh, do you have more time? Okay.

LEE QUINTANA: I would like to say that also in
the Implementation section I think it needs to be more
specific about what we’re trying to accomplish; not just rehab this and rehab that from this organization and that

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organization, but the actual number of rehabs that we’re aiming for.

The same thing with the BMP funds. It seems like
we don’t have that large a pot of BMP funds that it’s
enough to stretch over eight different programs. I also think we need to have more specific statements of what the objectives of these programs are and what we intend to
accomplish by them specifically.

CHAIR HANSSEN: It looks like Commissioner Thomas
has a question for you.

COMMISSIONER THOMAS: Hi, Ms. Quintana. Thank you
for staying up late and offering some input. Would you be willing to submit a list of the categories you feel like the implementation program should be clumped into so that HEAB can explore that when this goes through the progress of the modifications?
LEE QUINTANA: I will be very honest with you. I
have a terrible problem with putting things in writing, and it is almost to the point of being disabling. I went
through the implementation programs and just looked at
where the funding was coming from and what the topics were and could easily identify numerous things. I will try, but I don’t think it’s my responsibility to do that.

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COMMISSIONER THOMAS: So your opinion in that it
should be organized in a different way. You don’t have an ideal structure in mind, just that it needs to be organized in a way that…
LEE QUINTANA: Well, I’ve given you three
examples of specific categories that they could be broken down in. There are probably other categories that would need to be added to that.

COMMISSIONER THOMAS: I think like giving Staff
and our consultants a little bit of an idea of the
direction that you were thinking about would be helpful, but no, I agree, that’s not your responsibility. Thank you.

CHAIR HANSSEN: Any other questions for Ms.

Quintana? Thank you again for your comments. Is there
anyone else that would like to speak about the Housing
Element? I’m not seeing any other hands raised, so we can go back to the Commission.

Our objective is to make a recommendation to
Council. We have only three people out of seven that have been on the Housing Element, and this is fairly
complicated, so I wanted to see if anyone had any questions about the process or the document that would help you to make a recommendation? What we’re looking for is are there any fatal flaws relative to thinking that this thing has

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substantial compliance with what is needed for the State.

All right, I don’t see anyone with any questions.

This is like any other hearing though, so if
there are questions for Staff, that’s good, or if you have comments you’d like to make on the Housing Element and what we’re trying to do with certification, this would be a good time to do that, and I don’t think we’re quite ready for a motion, but maybe.

Commissioner Janoff.

COMMISSIONER JANOFF: Thank you. Having been
involved with the process gives us a little bit of an
advantage, because we’ve read every word and gone through that drafting process.

I would like to say that what I believe we are
being asked to do tonight is forward a recommendation for Town Council to approve the draft. I think I could find that our draft is in substantial compliance. There was a great deal of work by Staff, by consultants, we’ve got
public comments, and we’ve followed the guidelines that the HCD had provided. I think that I can competently say that this draft is in substantial compliance having worked on it, not having received any comments back, but I think that there’s a fairly low risk in our making this recommendation to Council. We can anticipate that there might be changes

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coming, as Staff has indicated, but I would not expect
those changes to substantially alter the draft that we have before us such that our recommendation would be hollow, so I very much would support making the recommendation to Town Council that they approve this draft and the associated documents.

CHAIR HANSSEN: Thank you, Commissioner Janoff.

Commissioner Thomas and then Commissioner Burnett.

COMMISSIONER THOMAS: I agree with Commissioner
Janoff’s comments, and as someone that has been sitting on the Housing Element Advisory Board, I actually wasn’t at the meeting where we approved this, but I did look at all the feedback and was keeping up and I do think that this needs to get forwarded. I’m really happy with the process that we would be able to modify anything that we need to, concerns that come up related to HCD and official
certification or not, or acceptance by HCD.

What I really am most concerned about though is
us missing the deadline. As my time on the Planning
Commission, the Housing Element Advisory Board, and the General Plan Update Committee, I feel like it’s really
important that we meet this deadline.

I attended a couple of online Zoom meetings and
information sessions about the Builder’s Remedy, and I know

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that it hasn’t been used that much in the past, but I went to some Zoom sessions on some things and there are
contractors, people, and a slew of lawyers that are really, really, really ready to jump on using the Builder’s Remedy to get projects pushed through like on February 1st, and everything is very organized and lined up with a lot of different organizations and it’s heavy supported by a lot of people at the State level, I think, because of the
housing crisis.

So I think that from my experience on the
Planning Commission, on the Housing Element Advisory Board, and the General Plan Committee, I know that for the people that live in Los Gatos a really, really high priority is maintaining local control over what gets built where, and if we don’t certify this, we’re going to lose that control, and so I think that that’s something that’s really
important. I was pretty surprised at how organized some of these groups are with being ready and having the resources to really use the Builder’s Remedy to get some projects through.

CHAIR HANSSEN: And without local control.

COMMISSIONER THOMAS: Yes, and I guess that’s the
most important part; this Builder’s Remedy is we would have no say. Planning Commission, Town Council, Town Staff would

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have zero say essentially on what would be built, and so we would just lose all local control essentially and that, I know, is really the last thing that a lot of people in Town want.

CHAIR HANSSEN: Thank you for that, Commissioner
Thomas.

Commissioner Burnett.

COMMISSIONER BURNETT: Yes, good evening. It’s
been an interesting evening. Yes, I do agree with
Commissioner Janoff and Commissioner Thomas. I believe this is a good document and I would definitely be for it and sending it back to the Town Council. I also like the idea that two new sites were added, which would help maintain the RHNA plus a buffer, so I think it would be the correct decision to send it back to the Town Council as it is.

Thank you.

CHAIR HANSSEN: Thank you for the comments.

Commissioner Clark.

COMMISSIONER CLARK: I have a question, and then
I can make some comments. I was wondering how much money is in the Town Affordable Housing Fund and the BMPP funds? I had thoughts similar to Ms. Quintana’s about those being applied to a lot of programs and I was wondering what those funds look like.

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JOEL PAULSON: Thank you, Commissioner Clark. I
don’t have a number off the top of my head, and there has been some shifting with some of the funds relating to the Dittos Lane project, that was about $1.2 million, so I
would assume it’s probably somewhere in the range of about $2.5 million currently.

COMMISSIONER CLARK: Okay, thank you. I don't
know, maybe something for the Town Council to consider is whether that is sufficient for all the things that we have them allocated for.

I don’t have any concrete changes that I’m going
to recommend tonight, I just have a few things that I’d appreciate being included in comments to the Council when it’s reviewed, or reviewed by the Housing Element Advisory Board, in the future.

I think that there’s a lot about preservation and
repair of apartments and things like that, but a big
problem I think we all see on the Planning Commission is the constant loss of starter homes in our town. If there’s a home that is relatively affordable and maybe is one or two bedrooms and is one-story and kind of old, it gets
bought by someone who has the money to afford it and then it gets turned into a really big home that from then on nobody will be able to afford, and so we’re losing places

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that people can buy when they want to purchase their first home, and so I’d like to see something about preservation of starter homes included.

One idea that I have floated around is something
like if a family buys a property, they aren’t allowed to demolish the home within their first five years of owning it or something, so that people with a huge amount of
wealth don’t buy a tiny home in order to demolish it. Just in general, something along those lines.

And maybe like Policy HE-4.4, which is Naturally
Occurring Affordable Units, because that’s an example of that.

Also, there is not an implementation program for
Policy HE-2.2, Housing Vouchers, and I think Section 8
vouchers are really important and I really liked seeing that policy in there, but without an implementation program nothing really concrete around it will happen, so I think we should have an implementation program related to that policy on Section 8 vouchers.

For Program D, the North Forty Specific Plan,
there’s an increase in the maximum density and I think that we should include an increase in the maximum height as
well, because with the first section of the North Forty that people are pretty upset with, the height restriction

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is definitely part of what made them more expensive I know from speaking with the builders of the complex. Also part of the reason why it’s not aesthetically pleasing to a lot of people is because they built as high as they could and then couldn’t really add any shape at the top or anything.

So those are the comments. I saw you all taking
notes, so thank you; I appreciate it.

CHAIR HANSSEN: Those are very good comments. I
don't know how much of the Housing Element you got to read, and the devil is certainly in the details, but one of the major goals in the Housing Element is preserving the
existing housing stock, so to me that would be a very
important detail that we need to have covered as part of that goal. And the policies tend to be fairly high-level too, and sometimes they’re specific, but the implementation programs is where we would have a lot more details, so
thank you for those very specific suggestions.

COMMISSIONER CLARK: Yes, thank you.

CHAIR HANSSEN: I just wanted to add on to
Commissioner Janoff’s comments that I feel very
comfortable, and even though I’ve been through this
document a million times I felt even more comfortable after I read the Staff Report, because the way I was looking at it was it’s not all the way in the details about like what

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density do you have on what site, it’s the process that we went through.

One of the things that we had to do in this
Housing Element is add in affirmative fair housing—it’s a new law in California—and so we have a consultant, and the consultants worked on that to make sure that we’ve
incorporated all the appropriate language for that. We have to have the site inventory; that part is done, and we have to have goals and policies that would lead us to being
successful in meeting our RHNA.

The way I really think this will end up happening
is once we get the comment letter from HCD, and that’s why I asked about the comment letters comparing this to the comment letters of the other jurisdictions, because it is very clear in all those comments that what they really want is don’t just say I’m going to make affordable housing
happen. I’m just using it as an example. It would be like I’m going to take these steps to make this project happen here or this kind of project happen, and so that’s all the stuff that we would think would come from HCD.

But I feel really comfortable that we went
through this whole process, that we have a good site
inventory that could potentially produce the RHNA, and that we have the right kinds of goals and policies and it just

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needs to go to the next level in terms of detail, and I’m going to guess that when we see HCD’s comments it will be pretty much like that, and there are certainly some
modifications that have to happen to make sure we’re in compliance with the State law, because they keep changing, but those are all modifications.

Other thoughts from the rest of the Commission?
If you don’t have any other concerns we could try a motion and see if we’re there, and if not, we can keep talking.

Commissioner Raspe.

COMMISSIONER RASPE: Thanks, Chair. I don’t have
any particular concerns. I’ve read the document and I think you’re right, the devil is in the details and there’s a lot in there. I’m relying heavily on Staff and the highly
qualified members of this Commission who have spent
countless hours on it, and I think you’ve done a fantastic job, so I’m comfortable that this document represents our best current efforts and is suitable to go forward.

I’m also uncomfortable in the knowledge of the
downside if we don’t move forward, what the risks are, and so I think it behooves us to recommend to Town Council that we forward the recommendation of approval of this newly revised Housing Element update.

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CHAIR HANSSEN: Well said, thanks. Commissioner
Janoff.

COMMISSIONER JANOFF: That sounded like a motion.

COMMISSIONER RASPE: It is now.

COMMISSIONER JANOFF: If it was, then I’ll second
that motion.

CHAIR HANSSEN: Do you want that to be a motion,
Commissioner Raspe?
COMMISSIONER RASPE: Sure. Do you want me to make
it a little more formally?
CHAIR HANSSEN: Sure, why don’t you go ahead?
COMMISSIONER RASPE: I move that we provide to
Town Council a recommendation to adopt the Draft 2023-2031 Housing Element as set forth in Exhibit 1 of our Staff
Report, with revised Sites Inventory Analysis as provided in Exhibit 4, and a revised Sites Inventory Form as
provided in Exhibit 5.

CHAIR HANSSEN: Excellent. Second? Commissioner
Janoff.

COMMISSIONER JANOFF: Second.

CHAIR HANSSEN: Any other comments before we
vote? I don’t see any.

Commissioner Thomas.

COMMISSIONER THOMAS: Yes.

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CHAIR HANSSEN: Commissioner Raspe.

COMMISSIONER RASPE: Yes.

CHAIR HANSSEN: Commissioner Janoff.

COMMISSIONER JANOFF: Yes.

CHAIR HANSSEN: Commissioner Clark.

COMMISSIONER CLARK: Yes.

CHAIR HANSSEN: Commissioner Burnett.

COMMISSIONER BURNETT: Yes.

CHAIR HANSSEN: Vice Chair Barnett.

VICE CHAIR BARNETT: Yes.

CHAIR HANSSEN: And I vote yes as well, so that
passes unanimously, and since this is a recommendation I’m just going to clarify with Staff that there are no appeal rights.

JENNIFER ARMER: That is correct.
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STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
January 12, 2023
Joel Paulson, Director
Community Development Department
Town of Los Gatos
110 E Main Street,
Los Gatos, CA 95030
Dear Joel Paulson:

RE: Town of Los Gatos’ 6th Cycle (2023-2031) Draft Housing Element Thank you for submitting the Town of Los Gatos draft housing element received for review on October 14, 2022. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. In addition, HCD considered comments from YIMBY Law and Greenbelt Alliance, Kylie Clark, Silicon Valley@Home and Campaign for Fair Housing Elements and YIMBY Law, pursuant to Government Code section 65585, subdivision (c).

The draft element addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code).

The enclosed Appendix describes the revisions needed to comply with State Housing Element Law.

For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government fails to adopt a compliant housing element within 120 days of the statutory deadline (January 31, 2023), then any rezoning to make prior identified sites available or accommodate the regional housing needs allocation pursuant to Government Code sections 65583, subdivision (c) and 65583.2, subdivision (c), shall be completed no later than one year from the statutory deadline. Please be aware, if the Town fails to adopt a compliant housing element within one year from the statutory deadline, the element cannot be found in substantial compliance until any necessary rezones are completed.

Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting ATTACHMENT 9

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Joel Paulson, Director

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requirements pursuant to Government Code section 65400. With a compliant housing element, the Town will meet housing element requirements for these and other funding sources.

For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the Town to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at:
https://www.opr.ca.gov/planning/general-plan/guidelines.html.

HCD appreciates your hard work provided in the housing element update. We are committed to assisting the Town in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Jose Armando Jauregui, of our staff, at [email protected] .

Sincerely,
Paul McDougall
Senior Program Manager
Enclosure

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Town of Los Gatos 6th Cycle (2023-2031) Draft Housing Element Page 1 January 12, 2023

APPENDIX

TOWN OF LOS GATOS
The following changes are necessary to bring the Town’s housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code.

Housing element technical assistance information is available on HCD’s website at https://www.hcd.ca.gov/planning-and-community-development/hcd-memos. Among other resources, the housing element section contains HCD’s latest technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks), available at https://www.hcd.ca.gov/planning-and-community-development/housing-elements/buildingblocks and includes the Government Code addressing State Housing Element Law and other resources.

A. Review and Revision
Review the previous element to evaluate the appropriateness, effectiveness, and progress in implementation, and reflect the results of this review in the revised element. (Gov. Code, § 65588 (a) and (b).)
The review requirement is one of the most important features of the element update. The review of past programs should describe progress in implementation of previous actions, including results compared to objectives and evaluate the effectiveness of actions to make appropriate adjustments in the current planning period. In the most cases, the element does not describe any progress in implementation and particularly housing related outcomes and then simply concludes to continue or modify programs. For example, the prior element had a program to implement the below market rate program and evaluate the program as a constraint. The element reports the program was implemented. There is no discussion of outcomes or an evaluation of constraints. Then, the element concludes the program will be modified but the new program does not appear to adjust on past efforts.

The element must fully describe past commitments, progress in implementation, evaluate effectiveness and then discuss appropriate adjustments in the current planning period.

In addition, the element must provide an evaluation of the cumulative effectiveness of past goals, policies, and related actions in meeting the housing needs of special needs populations (e.g., elderly, persons with disabilities, large households, female-headed households, farmworkers, and persons experiencing homelessness) and revise programs as appropriate.

B. Housing Needs, Resources, and Constraints

1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).)

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Regional Level Patterns and Trends: While the element includes several maps and tables and reports data, it generally must evaluate the data and especially at a regional level, comparing the Town to the broader region. This is particularly important since the Town appears far different from the rest of the region. The analysis should address all components of the assessment of fair housing (e.g., segregation and integration, disparities in access to opportunity) and should focus on race, income, and overall access to opportunity). The analysis should address trends and incorporate local data and knowledge and other relevant factors (See below).

Income and Racial Concentration of Affluence (RCAA): The element briefly mentions incomes in the Town compared to the region and notes it is safe to speculate the Town has neighborhoods that are RCAAs; however, the entire Town is a RCAA and the element should incorporate this information. Please see HCD’s Affirmatively Furthering Fair Housing (AFFH) Data Viewer at https://affh-data-resources-cahcd.hub.arcgis.com/.

The element should include specific analysis of income and RCAA at a regional level (Town compared to the broader region). The analysis should at least address trends, conditions, coincidence with other fair housing factors (e.g., race, highest resource, overpayment), effectiveness or absence of past strategies (e.g., lack of publicly assisted housing and lack of multifamily zoning), local data and knowledge and other relevant factors. The element must add or modify meaningful programs based on the outcomes of this analysis, including actions to improve housing mobility within and beyond Town boundaries.

Disparities in Access to Opportunity: While the element provided a general analysis of opportunity areas, and high-level conclusions about the Town’s disparities in access to opportunity, it should analyze trends and patterns related to access to transportation on a local and regional level.

Disproportionate Housing Needs, Including Displacement Risk: The element includes some information on cost burden and overcrowding but should also discuss local patterns of housing conditions. For example, the element should discuss areas of the Town where proportions of housing units needing rehabilitation may be higher than other areas and may utilize local knowledge such as qualitative information from code enforcement staff.

Identified Sites and Affirmatively Furthering Fair Housing (AFFH): The element must include data on the location of regional housing need allocation (RHNA) sites by income group relative to all fair housing components. The analysis should address the number of units by income group and location, any isolation of the RHNA by income group, magnitude of the impact on existing concentrations of socio- economic characteristics and discuss how the sites improve fair housing conditions. The analysis should be supported by local data and knowledge and other relevant factors and programs should be added or modified as appropriate to promote inclusive and equitable communities.

Local Data and Knowledge: The element must include local data, knowledge, and other relevant factors to discuss and analyze any unique attributes about the Town related to

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fair housing issues. The element should complement federal, state, and regional data with local data and knowledge where appropriate to capture emerging trends and issues, including utilizing knowledge from local and regional advocates and service providers, Town staff and related local and County planning documents.

Other Relevant Factors: While the element includes some general background on exclusionary practices, it should relate these situations to the Town and complement data and mapping with other relevant factors that contribute to fair housing issues in the Town. For instance, the element can analyze historical land use; zoning and barriers to housing choices such as past denials of affordable housing, local land use initiatives or proposed referendums; investment practices; seeking investment or lack of seeking investment to promote affordability and inclusion; information about redlining/greenlining, restrictive covenants and other discriminatory practices; land use related lawsuits; local land use initiatives; demographic trends, or other information that complements the state and federal data.

Contributing Factors to Fair Housing Issues: Upon a complete AFFH analysis, the element must assess and prioritize contributing factors to fair housing issues and add or modify programs as appropriate.

2. Include an analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (Gov. Code, § 65583, subd. (a)(2).) Housing Conditions: The element provides some information on age of the housing stock. However, it must estimate the number of units in need of rehabilitation and replacement. For example, the analysis could include estimates from a recent windshield survey or sampling, estimates from the code enforcement agency, or information from knowledgeable organizations. For additional information, see the Building Blocks at https://www.hcd.ca.gov/planning-and-communitydevelopment/housing-elements/building-blocks/housing-stock-characteristics.

3. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).)
Pipeline Projects: The element includes a list of 176 units through pipeline projects on page D-38. While the element may utilize pipeline and potential development projects toward the RHNA, it must also demonstrate their affordability and availability in the planning period. Affordability must be demonstrated based on actual sales price, rent level or other mechanisms ensuring affordability (e.g., deed restrictions). Availability should account for the likelihood of project completion in the planning period and should address the status, necessary steps to issue permits, any barriers to development and other relevant factors.

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Sites Inventory: The element must clarify what the allowable density is for the North Forty Specific Plan identified in Table A. The inventory indicates sites zoned under the North Forty Specific Plan where the minimum and maximum densities is the same (i.e., 30 units per acre). If the densities are the same, the element should include a specific analysis of the range as a potential constraint.

Realistic Capacity: The element must include a methodology for calculating the realistic residential capacity of identified sites. The methodology must be adjusted as necessary, based on the land use controls and site improvements and typical densities of existing or approved residential developments at a similar affordability level in that jurisdiction.

For example, the element could clearly list other recent projects, the zone, acreage, built density, allowable density, level of affordability and presence of exceptions such as a density bonus.

In addition, the element must also account for the likelihood of 100 percent nonresidential development. The element lists recent trends for residential development in non-residential zones but should also consider the development activity of 100 percent nonresidential uses. For example, the element could analyze all development activity in these nonresidential zones, how often residential development occurs and adjust residential capacity calculations, policies, and programs accordingly. This analysis may incorporate any proposed policies such as residential performance standards and prohibition of commercial uses.

Nonvacant Sites: The element must include an analysis demonstrating the potential for additional development on nonvacant sites. The element generally provides a description of the properties like location and whether the property owner submitted an interest form but does not describe the results of the form or why the property might redevelop in the planning period. To address this requirement, the element should address the extent to which existing uses may constitute an impediment to additional residential development, the Town’s past experience with converting existing uses to higher density residential development, the current market demand for the existing use, an analysis of any existing leases or other contracts that would perpetuate the existing use or prevent redevelopment of the site for additional residential development, development trends, market conditions, and regulatory or other incentives or standards to encourage additional residential development on these sites.

For your information, if the housing element relies upon nonvacant sites to accommodate more than 50 percent of the RHNA for lower-income households the housing element must demonstrate existing uses are not an impediment to additional residential development and will likely discontinue in the planning period. (Gov. Code, § 65583.2, subd. (g)(2).) Absent findings (e.g., adoption resolution) based on substantial evidence, the existing uses will be presumed to impede additional residential development and will not be utilized toward demonstrating adequate sites to accommodate the RHNA.

Replacement Housing Requirements: The element identifies sites with existing residential uses. Absent a replacement housing program, these sites are not adequate sites to accommodate lower-income households. The replacement housing program

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that has the same requirements as set forth in Government Code section 65915, subdivision (c), paragraph (3). The housing element must be revised to include such analysis and a program, if necessary.

Small Sites: The element identifies several sites smaller than a half-acre. Sites smaller than a half-acre in size are deemed inadequate to accommodate housing for lower-income housing unless it is demonstrated that sites of equivalent size and affordability were successfully developed during the prior planning period or other evidence demonstrates the suitability of the sites to accommodate housing for lowerincome households, including programs as appropriate.

Zoning for Lower-Income Households: The element must demonstrate zoning appropriate to accommodate housing for lower-income households. The sites inventory includes zones with densities of 14 to 22 units per acre (Medium Density Residential RM) that allocate units for lower income. However, the element does not include an analysis evaluating the adequacy of the R-M zone to encourage and facilitate the development of units affordable to lower-income households. For communities with densities that meet specific standards (allow at least 30 units per acre for Los Gatos), no analysis is required. Otherwise, the element must include an analysis based on, including but not limited to, factors such as market demand, financial feasibility and development experience within identified zones demonstrating how the adopted densities can accommodate housing for lower-income households.

SB 9 Sites: The element identifies SB 9 as a strategy to accommodate the part of the Town’s RHNA. To support these assumptions, the analysis must include experience, trends and market conditions that allow lot splits. The analysis must also include a nonvacant sites analysis demonstrating the affordability, likelihood of redevelopment and the existing use will not constitute as an impediment for additional residential use. The analysis should describe how the Town determined eligible properties, whether the assumed lots will have turnover, if the properties are easy to subdivide, and the condition of the existing structures or other relevant factors indicating additional development potential. The analysis should also describe interest from property owners as well as experience. The analysis should provide support for the assumption of eligible properties being developed within the planning period. Based on the outcomes of this analysis, the element should add or modify programs to establish zoning and development standards early in the planning period and implement incentives to encourage and facilitate development as well as monitor development every two years with and identify additional sites within six months if assumptions are not being met. The element should support this analysis with local information such as local developer or owner interest to utilize zoning and incentives established through SB 9.

Availability of Infrastructure: The element must demonstrate sufficient existing or planned water and sewer capacity to accommodate the Town’s RHNA for the planning period.

Zoning for a Variety of Housing Types:

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• Transitional and Supportive Housing: Transitional housing and supportive housing are permitted as a residential use and only subject to those restrictions that apply to other residential dwellings of the same type in the same zone. The element must demonstrate compliance with this requirement or include a program if necessary.
• Permanent Supportive Housing: By right permanent supportive housing shall be a use by-right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses pursuant to Government Code section 65651. The element must demonstrate compliance with this requirement and include programs as appropriate. • Employee Housing: The element should clarify if there are any zones that allow agriculture uses. If there are zones that allow agriculture uses, then the town must comply with California Health and Safety Code Section 17021.6. Section 17021.6 requires employee housing consisting of no more than 12 units or 36 beds to be permitted in the same manner as other agricultural uses in the same zone.
• Manufactured Housing: The element must demonstrate zoning permits manufactured housing on a permanent foundation in the same manner and in the same zone as a conventional or stick-built structures are permitted (Government Code Section 65852.3) or add or modify programs as appropriate.

Electronic Sites Inventory: For your information, pursuant to Government Code section 65583.3, the Town must submit an electronic sites inventory with its adopted housing element. The Town must utilize standards, forms, and definitions adopted by HCD.

Please see HCD’s housing element webpage at https://www.hcd.ca.gov/planning-andcommunity-development/housing-elements for a copy of the form and instructions. The Town can reach out to HCD at [email protected] for technical assistance.

4. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures... (Gov. Code, § 65583, subd. (a)(5).)
Land Use Controls: The element must identify and analyze all relevant land use controls impacts as potential constraints on a variety of housing types. For example, the element should analyze all development standards by zoning district for impacts on housing costs and ability to achieve maximum densities. The element should also discuss any local initiatives, referendums, moratoriums or other mechanisms (existing or proposed) that impact housing supply, cost, feasibility, timing and ability to achieve maximum densities. In addition, the analysis should specifically address the development standards in the North Forty Specific Plan, Mixed Use Commercial, and the HighDensity Residential zone. The analysis must evaluate the cumulative impacts of land use controls on the cost and supply of housing, including the ability to achieve

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maximum densities. The Town could engage the development community to assist with this analysis.

Fees and Exaction: While the element lists the total fees per units for single-family and multifamily development, it should also list the fees that comprise that total and particularly impact fees then evaluate those total fees for impacts on development costs.

Local Processing and Permit Procedures: The element must describe and analyze the types of permits, extent of discretionary review including required approval findings, number of public hearings and processing time required for a typical single family and multifamily development that meets zoning requirements.

Housing for Persons with Disabilities: The element indicates the Town adopted a procedure for requesting reasonable accommodation for persons with disabilities (p. C23) and describes the procedure; however, the element should address criteria related to: “There would be no impact on surrounding uses” and include a program to address the constraint. In addition, residential care facilities for seven or more require a conditional use permit (CUP). The element should evaluate the CUP as a constraint and add a program to allow group homes in all residential zones with an objective and certain process similar to other residential uses.

Density Bonus: The element states the Town adopted a state density bonus program in June 2012. The Town’s current density bonus program should be reviewed for compliance with current State Density Bonus Law (SDBL). (Gov. Code, § 65915.). The element should include a program to update density bonus program. Program V is conducting a study to evaluate the existing Density Bonus Ordinance and recommend changes to increase the number of units constructed, however it should specifically commit to update the ordinance in compliance with state law.

Inclusionary Zoning Ordinance: The element mentions the Town’s inclusionary zoning ordinance, but it must also analyze the Town’s inclusionary housing requirements, including its impacts as potential constraints on the development of housing for all income levels. The analysis must evaluate the inclusionary broader policy’s implementation framework, including the percentage of new residential construction that is dedicated to affordable housing, the types of options and incentives offered, relationships with SDBL and any other factors that may impact housing costs.

Zoning and Fees Transparency: The element must clarify its compliance with new transparency requirements for posting all zoning, development standards and fees for each parcel on the jurisdiction’s website.

5. Analyze any special housing needs such as elderly; persons with disabilities, including a developmental disability; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. (Gov. Code, § 65583, subd. (a)(7).)

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Special Housing Needs: While the element quantifies some of the Town’s special needs populations, it must also estimate the number of persons experiencing homelessness in the Town. In addition, the element reports data but must also analyze the special housing needs. For a complete analysis of each population group, the element should quantify the needs, evaluate trends and characteristics (e.g., tenure, income) of housing needs, discuss disproportionate challenges faced by the population, the existing resources to meet those needs, assess any gaps in resources or effectiveness of past strategies, describe the magnitude of the remaining need and appropriate propose policies and programs.

For additional information and a sample analysis, see the Building Blocks at https://www.hcd.ca.gov/planning-and-community-development/housingelements/building-blocks.

C. Housing Programs

1. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing Element... (Gov. Code, § 65583, subd. (c).)
To have a beneficial impact in the planning period and achieve the goals and objectives of the housing element, programs should have specific commitment toward housing outcomes and discrete and early timing (e.g., at least annually or by Jan 2025).

Examples of programs to be revised include:
• Program K Small Multi-Unit Housing: The Program should include a timeline of when zoning code will be updated.
• M Lot Consolidation: The Program should include a quantification of approximately how many lot consolidations the town plans to facilitate. • Program R Development Impact and Permit Fees: The Program should include a completion timeline.
• Program S Affordable Housing Development: The Program should include quantification of approximately how many units will be incentivized. • Program T Purchase Affordability Covenants in Existing Apartments: The element should clarify the timeline to establish and implement the program (e.g., by 2024 and at least annually).
• Program AC Housing Opportunities for Persons Living with Disabilities: The Program must include a completion timeframe.
• Program AK Housing Conditions Survey: Program should be revised to include a specific timeline for when the housing condition survey will be conducted.

Additionally, the element should describe how often funding will be applied for (e.g., annually).

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• Program AR CDBG and Other Housing Rehabilitation Programs: The Program should clarify how often the Town will participate in the County of Santa Clara Community Development Block Grant Joint Powers Authority (e.g. annually, biannually).
• AS Countywide Home Repair Programs: The Program should include a numerical target (e.g., how many minor home repairs).
• AU Residential Rehabilitation Program: The Program should include a timeline commitment.

2. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Government Code section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. (Gov. Code, § 65583, subd. (c)(1).)
As noted in Finding B3, the element does not include a complete site analysis; therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the Town may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types. In addition, the element should be revised as follows:

Program D Additional Housing Capacity: Currently the element identifies a shortfall of adequate sites to accommodate the RHNA within the planning period. Program D appears to be intended to rezone sites to accommodate a shortfall of sites for the lowerincome- RHNA. However, the Program must be revised to meet all requirements pursuant to Government Code section 65583.2, subdivisions (h) and (i). For example, the Program must commit to permit owner-occupied and rental multifamily uses by-right (without discretionary action) for developments in which 20 percent or more of the units are affordable to lower-income households.

Replacement Housing Requirements: The housing element must include a program to provide replacement housing. (Gov. Code, § 65583.2, subd. (g)(3).) The replacement housing program must adhere to the same requirements as set forth in Government Code section 65915, subdivision (c), paragraph (3).

3. The Housing Element shall contain programs which assist in the development of adequate housing to meet the needs of extremely low-, very low-, low- and moderateincome households. (Gov. Code, § 65583, subd. (c)(2).) Program S (Affordable Housing Development): While the program targets extremely low income and other special needs groups, it should also include very low- and low-income

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households. The Program should be revised to include outcome-oriented commitments such as annual outreach with developers and identification of development or housing opportunities.

4. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).) As noted in Finding B4, the element requires a complete analysis of potential governmental constraints. Depending upon the results of that analysis, the Town may need to revise or add programs and address and remove or mitigate any identified constraints.

5. Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics... (Gov. Code, § 65583, subd. (c)(5).)
As noted in Finding B1, the element requires a complete AFFH analysis. Depending upon the results of that analysis, the Town may need to revise or add or modify goals and actions. Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific commitment, milestones, geographic targeting and metrics or numerical targets and, as appropriate, address housing mobility enhancement, new housing choices and affordability in higher opportunity or higher income areas, placebased strategies for community revitalization and displacement protection. For example, the element must add significant and meaningful housing mobility actions to overcome the existing patterns in the Town related to the broader region.

6. Develop a plan that incentivizes and promotes the creation of accessory dwelling units that can be offered at affordable rent... (Gov. Code, § 65583, subd. (c)(7).) Program U Accessory Dwelling Units (ADU): While the element includes a program to incentivize ADU development by waiving fees when an ADU is deed restricted for very low-, and low-income households, it should also provide other incentives that incentivize and promote the creation of ADUs that can be offered at affordable rent. The element could consider other ADU incentives such as exploring and pursuing funding, modifying development standards, and reducing fees beyond state law, pre-approved plans, and homeowner/applicant assistance tools. Finally, the program should commit to monitor the production and affordability of ADUs (e.g., every other year) and make adjustments, if necessary, by a date certain (e.g., within six months).

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D. Quantified Objectives
Establish the number of housing units, by income level, that can be constructed, rehabilitated, and conserved over a five-year time frame. (Gov. Code, § 65583, subd. (b)(1 & 2).)
The element did not address this requirement. The element must include quantified objectives to establish an estimate of housing units by income category, including extremely low-income households, that can be constructed, rehabilitated, and conserved over the planning period.

E. Public Participation
Local governments shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the Housing Element, and the element shall describe this effort. (Gov. Code, § 65583, subd.(c)(9).) While the element described various efforts to achieve public participation in the preparation of the housing element update, it should also describe how comments were considered and incorporated into the element.

Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. During the housing element revision process, the Town must continue to engage the community, especially organizations that represent lower-income and special needs households, including local neighborhood groups and commenters on this review such as Silicon Valley@Home, by making information regularly available while considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD.

F. General Plan Consistency
The Housing Element shall describe the means by which consistency will be achieved with other general plan elements and community goals. (Gov. Code, § 65583, subd. (c)(7).) The Town must discuss how internal consistency will be maintained and achieved with other elements of the general plan throughout the planning period.

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Public Comments received by HCD between
April 21, 2022, and November 18, 2022, and
reference in HCD finding/comment letter
dated January 12, 2023.

ATTACHMENT 10

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April 21, 2022
Dear Los Gatos City Council:

We are writing on behalf of YIMBY Law and Greenbelt Alliance regarding Los Gatos’s 6th Cycle Housing Element Update. YIMBY Law is a legal nonprofit working to make housing in California more accessible and affordable through enforcement of state law. Greenbelt Alliance is an environmental nonprofit working to en‐ sure that the Bay Area’s lands and communities are resilient to a changing climate.

We are writing to remind you of Los Gatos's obligation to include sufficient sites in your upcoming Housing Element to accommodate your Regional Housing Needs Allocation (RHNA) of 1,993 units.

In the Annual Progress Reports that Los Gatos submitted to HCD, we observe the following trend of housing units permitted in the last four years:

Year Housing units permitted
2018 25
2019 31
2020 180
2021 225
Average, 2018-2021 115
To meet the 6th cycle RHNA target, the rate of new housing permits in Los Gatos would need to increase from 115 units per year in 2018-2021 to 249 units per year in the next 8 years. This is a 116% increase from re‐ cent years. If the current pace were to continue, Los Gatos would meet only 46% of its new housing target.

Based on these trends, it is unlikely that Los Gatos’s existing realistic zoning capacity is sufficient to meet its 6th cycle RHNA target. According to HCD’s Housing Element Site Inventory Guidebook, housing elements must analyze the realistic capacity of their sites, which may include considerations of “[l]ocal or regional track records”, “past production trends”, and “the rate at which similar parcels were developed during the previous planning period”. A housing element that does not include a significant rezoning component is therefore un‐ likely to be compliant with state law.

We urge Los Gatos to include a major rezoning component in its Housing Element—a rezoning large enough to close the gap between recent housing production trends and the RHNA target. The rezoning should be within existing communities and should comply with the city’s obligation to Affirmatively Further Fair Hous‐ ing. We also urge Los Gatos to ease any other constraints, such as discretionary approval processes or impact fees, that may impede the rate of development on your city's housing sites.

Thank you,
Sid Kapur, East Bay YIMBY
Rafa Sonnenfeld, YIMBY Law ([email protected])
Zoe Siegel, Greenbelt Alliance ([email protected])

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August 04, 2022
Dear Los Gatos City Council:

We are writing on behalf of South Bay YIMBY regarding Los Gatos’s 6th Cycle Housing Element Update. As a regional pro-housing advocacy group, South Bay YIMBY works to ensure cities adopt housing elements that are fair, realistic, and lawful.

Per §8899.50(a)(1) of state code, Los Gatos's housing element must affirmatively further fair housing, which entails 'taking meaningful actions... that overcome patterns of segreg‐ ation.'
The City of Los Gatos is uniquely positioned to affirmatively further fair housing, as Los Gatos is a wealthy, exclusionary city that researchers with the Othering and Belonging In‐ stitute at UC Berkeley identify as highly segregated from the rest of the Bay Area. This so‐ cioeconomic segregation is caused by the exclusionary cost of housing in your community, where an average home, as of April 30th, costs $2,926,000, which is only affordable to someone earning a salary of $452,000, meaning only the richest 2% of households can afford to settle down in your community. To put a finer point on the level of afflu‐ ence in your city, the average home in your city costs more than French castles. It is thus no coincidence that your city is 64% whiter than the rest of the Bay, as well as 87% less black than the rest of the Bay Area.

In a 2021 report entitled 'Exclusionary Zoning: Its Effect on Racial Discrimination in the Housing Market,' economic advisors for the White House outline how exclusionary zoning, like yours, causes segregation. Your exclusionary zoning pushes low income children to live in less resourced areas, which begets worse life outcomes from health to income. The research is clear: exclusionary zoning violates your duty to further fair housing.

To take meaningful actions that overcome patterns of segregation, we recommend you:

1. End apartment bans in high opportunity areas. This will give middle and working class families the opportunity to share in the resources your rich neighborhoods enjoy. As of 2020, your city banned apartments in over 93.6% of residential areas, including in 96.7% of high opportunity residential areas.

2. Accommodate 3423 low income homes in your site inventory. While substantially larger than the floor of 847 low income homes required by RHNA, 3423 is the number of homes required to bring the proportion of low income families in your city in line with the rest of the Bay Area. While this number is large enough to be politically challenging, it will always be politically challenging to overcome segregation, as AFFH requires.

Thank you,
Salim Damerdji, South Bay YIMBY
Keith Diggs, YIMBY Law

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Campaign for Fair Housing Elements
fairhousingelements.org
The Town of Los Gatos
Via email: [email protected]
Cc: [email protected]
September 27, 2022
Re: Los Gatos’s Draft Housing Element
To the Town of Los Gatos:

YIMBY Law appreciates the Town’s recognition that “densification is the only practical solution to providing [its] fair share of future housing.” (Los Gatos Draft Housing Element, pp.10-22, D-41.) The Town is correct that it (and the region) will become “less competitive” if it fails to stem the housing crisis (id. p.10-2); the South Bay’s shrinking population warns us that its decline may have begun. Los Gatos effectively failed to produce any multifamily housing in the 2010s; overall home production peaked six decades ago. (Id. pp.B-22 to -23.) The Town must address this humanitarian disaster by throwing out the constraints it created to produce it. (Gov. Code § 65583(c)(3).) We reject the Californian planning folklore that towns like Los Gatos are “largely built out.” (Contra Draft, pp.10-22, D-41.) This just isn’t true. Vast swathes of Los Gatos are zoned R-1, with building illegal on half of any lot (see id. p.C-1), and the Town enforces wasteful lot sizes far beyond any household’s wildest needs (id. p.C-4; cf. id. p.A-9 [euphemizing lot sizes as “generous”]). The Town also charges thousands of dollars just to redraw the imaginary lines that prevent homes from being built. (Id. p.C-13.) State law requires none of this. It does require that affordable housing in Los Gatos be allowed to develop at at least 30 homes per acre (HCD Default Densities, p.18), and we call for the Town’s affordable-housing overlay (Draft, p.C-5) to be raised to at least that level. Better still, legalize density across the Town. Similarly, the Town should exceed

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what SB 9 already requires with respect to lot splits. (See id. pp.10-22.) Doing so would show that Policies HE-1.2, -1.7, and -6.5 are serious. (Id. pp.10-24, -28.) Besides density, processing time is a major known contributor to the housing shortage. We thank the Town for publishing that it takes 1–1½ years to permit an approved multifamily development. (Id. p.C-20.) While this is on par with other Santa Clara County jurisdictions (id. p.C-19), there’s no inherent reason the process should take so long: safe, dense, and affordable cities preexist our modern approval processes by millennia. Be bold and dismantle any nonsafety design standards.

Finally, we appreciate the Town’s confirmation that the owners of several opportunity sites “ha[ve] expressed interest in residential redevelopment.” (See id. pp.D-2 to -36.) It appears, however, that the owners of many other sites have not. (See ibid.) We question whether it is in fact realistic that those sites will see housing in this cycle.

We look forward to the City’s next draft. Please contact me with questions.

Sincerely,
Keith Diggs
Housing Elements Advocacy Manager, YIMBY Law
[email protected]
Campaign for Fair Housing Elements
fairhousingelements.org 2

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September 30, 2022
RE: Housing Element

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350 W. Julian Street, Building 5, San José, CA 95110
408.780.8411 • www.svathome.org • [email protected] about how adequate the targeted outreach was to tenants. Affirmatively Furthering Fair Housing (AFFH) requires jurisdictions to do targeted outreach to groups that generally do not access traditional public venues, or receive notifications through commonly used channels. The responsibility for robust and meaningful two-way engagement with all stakeholders goes beyond simply inviting them into the existing process.

We recommend that the Town take the opportunity to reengage and expand on prior community engagement efforts to facilitate a meaningful two-way engagement with all stakeholders to collect input on the current Draft. This process should include a thorough documentation of prior input on housing needs and proposed solutions and a clear record of input received through this additional engagement. These discussions should more clearly inform the housing needs assessment, the constraints analysis, and the policies and programs proposed in response.

The Draft states that the data packet supplied by ABAG was the basis for decisions about housing goals, policies, and implementation programs. This approach fails to meet the central expectation of the Housing Element Update process to integrate a process of consultation and reengagement with the community to fully understand and respond to their housing needs. HCD’s guidance documents clearly require substantive incorporation of local knowledge into jurisdictions’ foundational understanding of their residents’ housing needs, and policies and programs to be responsive to those needs. This is the purpose of the requirement for robust outreach and engagement. We believe much of this local perspective has been collected.

We recommend that the Town reassess the components of the Housing Element to integrate local knowledge gained through robust outreach and community engagement along with data as the foundation for decisions about housing goals, policies, and implementation programs.

Los Gatos’ recently adopted General Plan demonstrates that there is real momentum and community support to address racial injustice, but concrete policies and programs to build on this discussion and respond to the real community interest have not been identified in the Housing Element process. Without an articulation of the connection between policy goals and racial segregation or disproportionate housing need for protected classes, the community’s intent cannot translate into change. It would be tragic, and a real missed opportunity, for less to come of that work than it deserves.

We recommend that the Town identify and clearly articulate the connection between policy goals and implementation programs, and racial segregation or disproportionate housing needs for protected classes.

Anti-displacement Policies and Programs to Affirmatively Further Fair Housing The Town is in a unique position of having an existing landlord/tenant mediation and arbitration ordinance. The rent dispute ordinance applies to rentals on properties of 3 or more units and on rent increases at 70% of CPI or 5%.

Increases below 5% are considered valid and cannot be disputed. A landlord seeking an increase above 5% must justify the increase if disputed with “pass-through” and other operational costs, but would be capped at 10%. This is a program that is contracted out to Project Sentinel. We are pleased that the continuation of this program has been included in the current Draft Housing Element document. However, we are unaware of any assessment of the success of this ordinance. We generally have found that mediation and arbitration programs have a limited impact on preventing displacement, but do acknowledge that the ordinance is unique. We believe that the protections extended

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September 30, 2022
RE: Housing Element

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350 W. Julian Street, Building 5, San José, CA 95110
408.780.8411 • www.svathome.org • [email protected] under the existing ordinance should be augmented through additional programs or policies, to provide stability to tenants.

Earlier this year, SV@Home sent a letter outlining anti-displacement policies the Town could adopt to affirmatively further fair housing (AFFH). Some of the policies that SV@Home discussed include:
• Rent Survey Program: this will enable metrics for the Town to determine the efficacy of the mediation and arbitration ordinance, identify patterns of displacement, and consider effective policies to address the needs identified;
• Tenant Relocation Assistance: this program can help bridge the gap of moving expenses if a tenant is evicted for a no-fault cause, such as the redevelopment of an existing rental community. It can also serve as a tool to mitigate the costs of displacement prompted by a rent increase above a fixed percentage; and • Tenant Resource Center: this program would help the Town achieve its stated goals of reaching more displacement-impacted populations to ensure they have access to the services they need (i.e. the existing rental assistance) while creating a safe location for tenants and landlords to access the mediation and arbitration ordinance, and other policies and programs as they are developed.

We recommend that the Town of Los Gatos build upon its existing mediation and arbitration ordinance to add policies such as a rent survey program, tenant relocation assistance, and a tenant resource center. A clear timeline and process for development of these, or other renter protections, should be set to ensure that the impact will be measurable within the 6th Cycle.

The Town is proposing policies to acquire both private market housing and subsidized housing with expiring affordability restrictions. This would require significant financial resources for acquisition and rehabilitation, and we do not find an explicit mechanism to provide these resources in the current Draft. In our earlier correspondence outlining potential anti-displacement policies to fulfill AFFH requirements, we noted the potential to build a robust preservation program around a Community Opportunity to Purchase Act (COPA).

We recommend that the Town of Los Gatos outline a strategy for expanding local affordable housing development resources. This strategy should begin with a clear list of options to consider, a target goal for funds to be generated, and a timeline for implementation as required.

Meeting RHNA Levels and Housing Opportunity Sites Inventory The Town’s updated General Plan was a significant undertaking, and we believe a turning point in the approach that Los Gatos takes towards responding to the housing needs of the Town and its role in the region. Los Gatos is a net importer of employees. The new General Plan outlines significant steps to increase the number of new homes in the Town, including significant changes to land use designations that will allow for increased densities and the construction of multi-family housing. Much of this detailed land use work remains in progress, but we are confident that the plan will be implemented.

Based on our initial analysis we have concerns with the Town’s Sites Inventory. These are described below.

Insufficient Density in North 40 Specific Plan Area and Throughout the Sites Inventory We are pleased to see that the Town will accommodate roughly 12 percent of its lower-income capacity to the North 40 Specific Plan area. Although there have been ongoing community discussions about this important specific plan, we

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September 30, 2022
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350 W. Julian Street, Building 5, San José, CA 95110
408.780.8411 • www.svathome.org • [email protected] are aware of the richness of the area and the community’s intent to celebrate its agricultural heritage and hillside views. We acknowledge the Town's efforts to balance the area’s small town history and character with the local, and regional importance of increased residential density and affordable housing in the decade ahead. We are concerned, however, that the North 40 Specific Plan’s N-40 zoning designation only allows for between 13 and 22 dwelling units per acre, which is well below the required Mullin density minimum of 30 dwelling units per acre per HCD’s Housing Element Sites Inventory Guidebook.

In fact, approximately 63 percent of lower-income sites in the entire inventory currently do not meet this minimum density requirement. We know that under the recently adopted General Plan update there are significant plans to upzone portions of the Town, nonetheless, we are concerned that there will remain sites zoned at lower densities than required.

We recommend that the Town rezone all lower-income sites zoned with densities under 30 dwelling units per acre to allow for the HCD-required minimum density of 30 dwelling units per acre.

Overstatement of ADU Production Expectations
Appendix D estimates that 200 new ADUs will be built during the RHNA cycle, and that 40 percent of these (80 ADUs) will count towards the Town’s lower-income obligations. This amounts to over 9 percent of the total combined verylow and low-income units, and just under 20 percent of the total low-income category alone.

These forecasts are likely based on the ADU calculation methodology provided to Bay Area cities by the Association of Bay Area Governments (ABAG). While we understand why cities are using this guidance in their Housing Element planning process, we believe that this methodology is flawed in two ways: 1) it assumes significantly lower rents than unpublished local studies have shown and we have found in our analysis that the ABAG methodology subsequently credits far more units to affordable goals than is warranted, and 2) it assumes that all ADUs are used as primary residences, rather than home offices, guest rooms, or play spaces for children. Together, these failings lead to a significant overstatement of ADU impact.

Policies HE-1.7, HE-2.6, and HE-6.5, together with program U, are intended to incentivize with minimal public subsidy the production of lower-income ADUs to meet RHNA targets. We acknowledge the Town’s plan to waive building permit fees for deed-restricted lower-income ADUs under program U. However, Program U, including all the aforementioned ADU-related policies need to be assessed for their potential effectiveness, analyzed against current and past development trends, and incorporate input from single-family homeowners. Without this, the effectiveness of the proposed policies and programs are uncertain.

We recommend that the Town schedule an analysis to adequately assess the projected lower-income ADU production and that a system for tracking ADU production and rents be incorporated into annual HE reporting. This would allow for adjustments in current assumptions and provide an opportunity to assess the impact of the proposed policies.

We do note the inclusion of the General Plan land use policy 1.2, as an important step towards facilitating increased intensity of existing land use patterns. This is an important commitment given the nature of residential areas in the Town, and would similarly benefit from a scheduled review of its impact.

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September 30, 2022
RE: Housing Element

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350 W. Julian Street, Building 5, San José, CA 95110
408.780.8411 • www.svathome.org • [email protected] Methodology and Supporting Analysis of the Sites Inventory Fail to Conform to HCD Standards The Housing Element Sites Inventory Guidebook produced by HCD, along with supplemental resources provided by the Association of Bay Area Governments have a number of requirements and recommendations for lower-income sites. These requirements are very specific for non-vacant parcels identified as lower-income opportunity sites.

Although we found detailed descriptions of several non-vacant sites, and we acknowledge the important effort undertaken through the General Plan process, we believe the draft does not meet key requirements including:

1. Include an explanation of the methodology used to select sites and their development potential;

2. Provide substantial evidence that indicates existing non-residential use will be discontinued or will not be an impediment to future residential development;

3. Demonstrate that there is clear developer interest in redeveloping each site, including consolidating parcels for housing, within the planning period;

4. Clearly describe how the realistic capacity calculations were used to determine the number of units that can be reasonably developed on a site, and

5. Incorporate potential constraints (e.g. environmental, parking, open space, parcel shape etc.) into the inventory’s realistic capacity calculations consistent with the Guidebook.

Given the absence in the draft of alternative approaches to addressing these requirements, these details need to be provided on a site-by-site basis in the Sites Inventory.

We also note that approximately 24 percent of the new sites (totaling 211 units) identified for lower-income capacity are projected to accommodate fewer than 50 units. According to the Housing Element Sites Inventory Guidebook, lower-income sites that do not have 50 to 150 units make them less competitive for State and Federal resources to build affordable housing. The viability of financing affordable housing is of utmost importance. If the reasonable likelihood of adequately funding sites for lower-income units is low, then they should either have their realistic capacity assumptions heavily discounted across the inventory, or be removed from the Sites Inventory and be replaced with sites that could accommodate 50-150 unit developments.

We do acknowledge that the Town has prioritized an effort to expand the number of larger, two- and three-bedroom, affordable apartments to support the needs of families. This is an important commitment, even if it may mean fewer apartments in total.

We recommend the Sites Inventory provide a more comprehensive site-specific analysis as described above. We also suggest either heavily discounting the realistic capacity of sites that would produce less than 50 lower-income units or identifying alternative sites that would produce 50 or more affordable units so that they can be more competitive for external funding.

Governmental and Non-Governmental Constraints
The Constraints Assessment in the current Draft generally describes the Town’s development review processes and standards rather than providing the required analysis of their cumulative impact on the supply and affordability of housing. For example, there are of course a full menu of taxes and fees which may vary significantly, making it difficult to assess their impact on the costs to development. There are also significant off-site improvement requirements that are costly. The cumulative impact of these factors, and other administrative processes, should be assessed as a potential governmental constraint on development. Market rate development in Los Gatos benefits from very high

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September 30, 2022
RE: Housing Element

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350 W. Julian Street, Building 5, San José, CA 95110
408.780.8411 • www.svathome.org • [email protected] SV@Home values its partnership with the Town of Los Gatos and it is in that spirit that we provide our feedback on the Draft Housing Element. We welcome the opportunity to engage in an ongoing dialogue as the Draft Housing Element moves through cycles of review and revision, with the shared goal of addressing the Town’s urgent housing need by boosting production of homes at all income levels, preserving existing affordable homes, and protecting the families in them.

Sincerely,
Regina Celestin Williams
Executive Director

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From: Kylie Clark < >
Sent: Friday, November 18, 2022 4:42 PM
To: Housing Elements@HCD <[email protected]>
Subject: Los Gatos General Plan Referendum
Hello,
I hope this email finds you well! Thank you so much for all of the work you are doing on the Housing Element. As someone who does housing work in a lot of anti-housing cities, I really appreciate the work you are doing to resolve our state's housing crisis. I'm a Los Gatos Planning Commissioner, but I am writing to you just as a concerned citizen.

I am reaching out to make sure you are aware of a referendum [losgatosca.gov] that was recently signed by enough Los Gatos voters to be placed on the ballot. The referendum suspends the town's Land Use and Community Design Elements in our General Plan, which was approved by our Town Council in the last few months. The referendum was fully paid for and passed by a few rich white anti-housing men in our town (they paid the signature gatherers $10 per signature).

The justification for this referendum is their opposition to our planned housing numbers, as we went above the state mandate (which makes sense, as this is our General Plan looking 20 years out, not just planning for this 8-year HE cycle). The anti-housing group is claiming that the town will build 12,000 new units in the next 8 years (haha I wish).

I have a lot of questions about this referendum, including whether it is even lawful, as it places land use on the ballot, meaning if the town wanted to make any future changes to our land use we would have to take it to the voters. It also might cause some serious problems with our Housing Element, as obviously our Land Use Element is closely tied to it.

I wanted to make y'all aware of this and to see if you would be able to support our town in any way. We put a lot of work into our General Plan, and these are very strong elements. I would hate to see them reformed to allow for less housing just because of a few upset rich residents.

Thank you so much!
In community,
Kylie
(Pronouns: she, her, hers)
Yes, We Live on Ohlone Land. But What Does That Mean? [thebolditalic.com] ------
Kylie Clark
Community organizer, nonprofit professional
|

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From: David Kellogg < >
Sent: Friday, November 18, 2022 5:07 PM
To: Housing Elements@HCD <[email protected]>
Subject: Public Comment on Housing Element
Nov 18, 2022
On behalf of David Kellogg (a Contra Costa County resident), 350 Contra Costa, Greenbelt Alliance, CaRLA, Scott O’Neil (a resident of Palo Alto), Watson Ladd (a resident of Berkeley), Marven Normal (a resident of San Bernadino), Dara Dadachanji (a resident of San Francisco), and George Grohwin (a resident of San Francisco), we provide the following comment on the Housing Element from LOS GATOS.

Issue
• The Housing Element from LOS GATOS fails to adequately analyze compliance with one of the state’s fundamental streamlining laws.
• Under PRC 21080.1 & 21080.2, a lead agency must determine if a housing development is exempt from CEQA within 30 days of completeness, or if an EIR or other CEQA document will be required.
• For CEQA-exempt housing, this CEQA determination then triggers a 60-day approval clock (with deemed approved remedies) under the Permit Streamlining Act. Thus, if state housing laws were followed, CEQA-exempt housing projects should generally receive approvals in about 120 days.

1. 30 days to determine completeness

2. 30 days for CEQA review

3. 60 days for approval.
• LOS GATOS does not appear to issue determinations of CEQA-exemption within 30 days of completeness. As a result, builders and the public are denied the right to the timely approval of housing. Additionally, the builders are forced into an unreasonable bargaining position, as they lack the “deemed approved” options they should have. This improperly empowers jurisdictions to treat builders arbitrarily in the entitlement process.
• Moreover, LOS GATOS has no apparent good-faith basis for delaying CEQA-exemption determinations beyond the allowance of Public Resources Code 21080.1 & 21080.2. In the vast majority of instances, these exemptions are uncontested and straightforward.

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Recommendation
• The Housing Element from LOS GATOS should include an analysis of compliance in its approval process with PRC 21080.1 & 21080.2.
• The Housing Element from LOS GATOS should add a program to specify (i) who is responsible for making the CEQA determination of PRC 21080.1, specify (ii) that their decision will be made within the timeframe permitted by PRC 21080.2, and specify that (iii), when they determine a project is exempt from CEQA, their determination triggers the Permit Streamlining Act (PSA) 60-day deadline (Gov. Code 65950(a)(5)). If existing local practices or regulations are incompatible with these state laws, the program should commit to enacting reforms necessary to achieve compliance within a reasonable and definite timeline.

HCD Technical Assistance Letter
• The CEQA issues mentioned herein are discussed in the June 3, 2022 Technical Assistance letter sent to Berkeley by Shannan West, Housing Accountability Unit Chief (copy included below).
• In the letter, HCD notes that Berkeley had been issuing “recommendations” of CEQAexemption and that the actual “determinations” were made more than 30 days beyond the completeness date. HCD notes that such practice was in violation of PRC 21080.1 & 21080.2 and “may act as a governmental constraint on housing.”

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On August 3, 2021, the Town Council adopted Resolution 2021-032 to establish the Housing Element Advisory Board (HEAB) to serve as an advisory board that provides input on specific tasks associated with the Housing Element Update and established the role of the HEAB as follows:
 Provide guidance on the development of the Housing Element Update;  Provide an additional forum for public involvement;
 Forward milestone products to the Planning Commission and Town Council;  Review the Draft Housing Element; and
 Make recommendations to the Planning Commission and Town Council.

On August 9, 2021, the Town participated in a Let’s Talk Housing Community Meeting for Santa Clara County jurisdictions hosted by the Santa Clara County Planning Collaborative.

On September 21, 2021, the Town Council appointed four at-large members to the HEAB, in addition to the existing nine members of the General Plan Committee (GPC).

On October 15, 2021, the HEAB held their first meeting to elect the Chair and Vice Chair and adopt a meeting schedule.

On February 17, 2022, the HEAB reviewed and discussed the Housing Element Site Inventory analysis process.

On April 6, 2022, a Joint Study Session of the Town Council, Planning Commission, and HEAB was held to discuss the production of affordable housing.

ATTACHMENT 11

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On April 24, 2022, Town staff hosted a booth at the Spring Into Green event at the Town Plaza to provide the public an opportunity to discuss the Housing Element Update.

On May 5, 2022, the HEAB continued the discussion of the Site Inventory and provided feedback on additional sites that should be included.

On June 16, 2022, the HEAB reviewed and provided initial direction and modifications to the Draft Housing Element Goals, Policies, and Implementation Programs.

On July 7, 2022, the HEAB continued to review and provide additional direction and modifications to the Draft Housing Element Goals, Policies, and Implementation Programs.

On August 4, 2022, the HEAB completed review of the Draft Housing Element Goals, Policies, and Implementation Programs and provided feedback for additional modifications.

On August 16, 2022, signatures were submitted to the Town in support of a referendum on the Land Use and Community Design Elements of the approved 2040 General Plan.

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On August 29, 2022, the Town released the Initial Public Review Draft Housing Element for a 30- day public comment period which ran from August 29, 2022, to September 27, 2022.

On September 15, 2022, the HEAB received public comments on the Initial Public Review Draft Housing Element during the 30-day public review period.

On September 27, 2022, the referendum signatures on the Land Use and Community Design Elements of the approved 2040 General Plan were verified by the Santa Clara County Registrar.

On October 9, 2022, Town staff hosted a booth at the Los Gatos Farmers’ Market to provide opportunity for the public to discuss the Draft Housing Element.

On October 20, 2022, the HEAB reviewed the Draft Housing Element that was submitted to HCD for preliminary review, including a summary of all modifications that were made to the Draft Housing Element. Modifications to the Site Inventory as reviewed by the Town Council on June 7, 2022, include:
 The addition of 401-409 Alberto Way as the property owner submitted a Property Owner Interest form to the Town;
 The removal of 404 North Santa Cruz Avenue, 420 North Santa Cruz Avenue, and 430 North Santa Cruz Avenue (Los Gatos Shopping Center) from the Site Inventory per the property owner’s request and therefore deleted the North Santa Cruz Avenue Area;  The removal of 16535 Camellia Terrace and parcel number 523-02-005 (El Gato Village) as no Property Owner Interest form was submitted;
 Increased the housing density within the North Forty Specific Plan from 20 dwelling units per acre to a minimum of 30 dwelling units per acre to align with Implementation Program D and a public comment received from a member representing the interests of the property owner during the 30-day public comment period;
 Revised the housing density used for the calculation of projected housing units in the Site Inventory from the maximum density to the typical density, to be consistent with the 2040 General Plan Residential Buildout;

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 Increased the maximum housing density within the Affordable Housing Overlay Zone (AHOZ) from 20 dwelling units per acre to 40 dwelling units per acre to area to align with Implementation Program BF;
 Modified the distribution for each income category to be consistent with the HCD Housing Element Site Inventory Guidebook, which allows jurisdictions to use a higher density (default density of 30 dwelling units per acre) as a proxy for lower income affordability;  Created a Senate Bill 9 (SB 9) unit projection;
 Modified the number of housing units generated in the Pipeline Projects based on the creation of a new SB 9 projection, Planning applications that have been withdrawn, and projects that have received their Certificate of Use and Occupancy;  Decreased the overall total number of housing units in the Site Inventory from 2,448 units to 2,371 units, as a result of the changes listed above; and  Created a separate Appendix H, Site Inventory Form per HCD formatting requirements.

On December 1, 2022, the HEAB discussed anticipated comments on the Draft Housing Element based on comments other jurisdictions have received from HCD on their Draft Housing Element.

On December 11, 2022, Town staff hosted a booth at the Los Gatos Farmers’ Market to provide the public an opportunity to discuss the Draft Housing Element.

On December 13, 2022, Town staff met with our HCD reviewer and received verbal, preliminary input on the Draft Housing Element.

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On January 11, 2023, the Planning Commission unanimously recommended the Town Council adopt the Draft 2023-2031 Housing Element with the revised Sites Inventory Analysis and revised Sites Inventory Form.

On January 12, 2023, the Town received HCD’s findings/comment letter on the Draft Housing Element.

On January 15, 2023, Town staff hosted a booth at the Los Gatos Farmers’ Market to provide the public an opportunity to discuss the Draft Housing Element.

On January 19, 2023, Town staff attended a Democracy Tent of Los Gatos meeting to discuss the Draft Housing Element.

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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 WHEREAS, as provided in Government Code Sections 65352 – 65352.5 the Town mailed ATTACHMENT 12
Draft

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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, the Draft Housing Element substantially complies with State Housing Element Law for the reasons stated in the Findings below and will return to the Town Council with proposed amendments to add the information recommended by HCD; 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
Draft

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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. 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;
Draft

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d. Identifies adequate sites for housing to accommodate the Town’s RHNA allocation in that the Town’s RHNA allocation is 1,993 units and sites accommodating [2,312 units] have been identified; 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.

4. 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.

5. 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.

6. 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.

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

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

9. The Housing Element is found to be in substantial compliance with State Housing Element Law and the Community Development Department is authorized to make all non-substantive changes to the Housing Element to make it internally consistent or to address any non-substantive changes or amendments requested by HCD to achieve certification.

Draft

Page 164 ends

Los Gatos City CouncilJanuary 30, 2023

Los Gatos City Council
January 30, 2023