Los Gatos City Council
August 15, 2023

107 S. Fair Oaks Avenue, Suite 212
Pasadena, CA 91105
P (626) 304-0440
F (626) 304-0005
We anticipate having routine meetings and email communications with staff (virtually) to discuss project progress and issues. Based on the scope outlined above, the most timeconsuming task is substantiating the adequacy of sites inventory, especially the nonvacant sites. We propose the following tentative schedule for the Housing Element:

Milestone Timeline (days from contract initiation)
Data Collection 10 days
Revised Housing Element 45 days
Staff Review 55 days
Resubmittal to HCD 65 days
Review and Revise final HCD comments 125 days
This schedule assumes that the Town would resubmit the Revised Draft Housing Element to HCD for a formal review. If the Town prefers an informal review, then the schedule may be condensed.

Budget
We recommend structuring this project as time-and-materials with a not-to-exceed amount.

Task
Tam Planners GIS/Tech Estimated
$ 200 $ 135 $ 135 Fee

1. Housing Element Revisions 40 240 20 $ 43,100

2. HCD Communications 20 $ 4,000

3. Project Management and Communications 20 $ 4,000
Total 80 240 20 $ 51,100
Qualifications
Veronica Tam and Associates, Inc. (VTA) is a California corporation located in Pasadena, California. VTA was established in November 2005 and has since been providing housing and community development consulting to local jurisdictions throughout California. We provide assistance in the following areas:
 Housing Element updates
 Zoning revisions for housing-related issues
 Special housing studies
 Consolidated Plan and related reports
 Grants administration and technical assistance
 Analysis of Impediments to Fair Housing Choice
 Environmental clearance for housing-related plans and projects

107 S. Fair Oaks Avenue, Suite 212
Pasadena, CA 91105
P (626) 304-0440
F (626) 304-0005
Housing Element Preparation and REAP Technical Assistance We are well known for our expertise in State Housing Element law. We have prepared Housing Elements for jurisdictions throughout the State and maintain an excellent track record of receiving State certification. The following are some of our 5th and 6th cycles Housing Element work. Blue jurisdictions are those that have been certified for the 6th cycle, demonstrating our understanding in the new State law and our success in assisting our clients. The remaining 6th cycle works are underway.

We are also taking over several Housing Element works from other consultants who are not able to complete the projects. These include Beverly Hills, Hermosa Beach, La Mirada, Mission Viejo, Norwalk, San Mateo, and Goleta.
 Bell Gardens5,6  Laguna Beach6  Rolling Hills Estates6  Berkeley6  La Mesa5,6  Rosemead6
 Beverly Hills6  La Mirada6  Salinas5,6
 Buena Park5,6  La Puente6  San Clemente5,6
 Camarillo5,6  Long Beach5,6  San Diego County6
 Capitola6  Los Angeles County6  San Fernando5,6
 Claremont6  Marin County6  San Ramon6
 Corona5,6  Marina,5,6  Santa Barbara County6
 Culver City6  Mission Viejo6  Santee5,6
 Cypress6  Monterey County5  Seaside5,6
 El Cajon5,6  Ojai6  Simi Valley5,6
 El Centro5,6  Oceanside6  South Gate5,6
 El Segundo5,6  Palo Alto6  Thousand Oaks6
 Escondido5,6  Pacific Grove6  Torrance6
 Gardena6  Palmdale6  Tracy5,6
 Glendora5,6  Pasadena6  Ventura6
 Hermosa Beach6  Petaluma6  Vista5,6
 Imperial Beach5,6  Rancho Cucamonga6  Walnut5,6
 Jurupa Valley5,6  Redondo Beach5,6  West Hollywood5,6  La Canada Flintridge5,6  Riverside6  Westlake Village6 In addition to directly assisting our clients with Housing Element preparation, VTA has also been retained by various Council of Governments (COGs) to provide technical assistance.

These include:
 ABAG – Marin County Collaborative
 ABAG – Contra Costa County Collaborative
 San Joaquin Valley Collaborative
 GCCOG – Gateway Cities Council of Governments

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From: Mary Badame <[email protected]>
Sent: Thursday, August 3, 2023 3:14 PM
To: Laurel Prevetti <[email protected]>
Subject: Fwd: Latest Table 10-3..pdf - adjusted to reflect SB 330 for B-1 and D-1 Dear Laurel,
I remain very concerned with our Housing Element not obtaining certification from HCD.

I am forwarding Table 10-3 with revisions which counters what was submitted to HCD.

SB 330 applications for the N40 D-1 site and the Los Gatos Lodge B-1 site are “pending projects” and are listed as such on the Town’s website. The property owners have clearly stated on their applications there is no intention of developing at the densities and the number of units per income category.

Adjusting Table 10-3 to reflect the number of units in the received SB 330 applications, shows there is a shortfall of 109 very low units and 5 moderate units from the Town’s RHNA of 537 very-low units and 320 moderate units. Additionally, there is only an 8% buffer over the 310 low-income units which is less than the 15% buffer requested by HCD.

I am seeking answers to discrepancies and representations - including the statement “Los Gatos reasonably expects that a total of 2492 units will be developed, as described in the tables below”.

Can you confirm the adjusted Table 10-3 correctly shows the RHNA shortfall once the densities and units by income in the SB 330 applications for sites B-1 and D-1 are accounted for? What do you expect HCD will do once they fully understand the B-1 and D-1 property owners have no intention of developing at the densities and units by income category as represented by our Town? If sites B-1 and D-1 are adjusted to reflect the planned units in the SB 330 applications, can you confirm that the Town has sufficient units in the 15% buffer to meet our RHNA requirements for all income categories?
If the Town adds more parcels to the site inventory now, how does that impact the likelihood of obtaining HCD certification? Wouldn’t it increase the likelihood? If we do nothing and file the HE with no additional parcels, how confident are you that HCD will certify the HE, ignoring the shortfall in densities and income units on B-1 and D-1 sites? I look forward to discussion at our next Council meeting.

Kind Regards,
Mary
ATTACHMENT 4

From: Mary Badame <[email protected]>
Sent: Friday, August 4, 2023 2:55 PM
To: Laurel Prevetti <[email protected]>
Subject: Fwd: Final spreadsheet Site Inventory for B-1 and D-1 and HCD comment letter to LAH addressing lack of owner interest in development
Dear Laurel,
Thank you for the Council Referral on my prior email regarding the Housing Element.

Can you please retract the prior attachment of Tqble 10-3 and replace with the attached site inventory analysis. Also included and requesting distribution with the Referral is the attached HCD comment letter regarding the Town of Los Altos Hills..

Kind Regards,
Mary
Get Outlook for iOS
From: Phil Koen
Sent: Friday, August 4, 2023 2:10:41 PM
To: Mary Badame <[email protected]>
Subject: Final spreadsheet Site Inventory for B-1 and D-1 and HCD comment letter to LAH addressing lack of owner interest in development
[EXTERNAL SENDER]

Analysis of adequacy of Site Inventory
Zipcode APN VL L M A Total Acres
N40 Parcels - Site D-1 inventory
14859 Los Gatos Boulevard 95032 424-07-094 35 17 17 18 87 2.9 16392 Los Gatos Boulevard 95032 424-07-095 9 4 5 5 23 0.78 16260 Burton Road 95032 424-07-053 5 2 3 3 13 0.44
16250 Burton Road 95032 424-07-009 5 2 3 3 13 0.44
14917 Los Gatos Boulevard 95032 424-07-081 45 22 22 23 112 3.74 14925 Los Gatos Boulevard 95032 424-07-115 73 36 36 37 182 6.07 Los Gatos Boulevard 95032 424-07-116 12 6 6 7 31 1.02
>>Total 184 89 92 96 461 15.39
SB 330 Application received by Town 0 88 0 349 437
(Shortfall)/Excess from Site Inventory D-1 (184) (1) (92) 253 (24) Los Gatos Lodge - Site B-1 inventory
50 Los Gatos-Saratoga Road 95030 529-24-032 76 75 51 9 211 7.04 Los Gatos-Saratoga Road 95030 529-24-001 9 9 9 18 45 1.49 Los Gatos-Saratoga Road 95030 529-24-003 1 2 2 3 8 0.28 >>Total 86 86 62 30 264 8.81
SB 330 Application received by Town 0 32 0 126 158
(Shortfal)/Excess from Site Inventory B-1 (86) (54) (62) 96 (106) >>Total Shortfall from Site Inventory for B-1 and D-1 (270) (55) (154) 349 (130) Table 10-3 Total Estimated Housing Site Inventory 646 362 347 642 1,997 Adjusted Table 10.3 Total Estimated Housing Site Inventory 376 307 193 991 1,867 ADU 20 60 60 60 200
Senate Bill 9 96 96
Pipeline Projects 1 200 201
Total 396 368 253 1,347 2,364
RHNA 6th Cycle 537 310 320 826 1,993
(Shortfall)/Excess over RHNA (141) 58 (67) 521 371

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 25, 2023
Sofia Mangalam, Director
Planning and Building Department
Town of Los Altos Hills
26379 Fremont Road
Los Altos Hills, CA 94022
Dear Sofia Mangalam:

RE: Town of Los Altos Hills’ 6th Cycle (2023-2031) Draft Housing Element Thank you for submitting the Town of Los Altos Hills’ (Town) draft housing element that was received for review on October 27, 2022 along with revisions on January 9, 2023.

Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. Our review was facilitated by a conversation on December 22, 2022 with yourself, City Manager Peter Pirnejad, and attorneys Steve Mattas and Claire Lai from Meyers Nave. In addition, HCD considered comments from Kevin Meyer, YIMBY Law, South Bay YIMBY, Sasha Zborzek, Adam Buchbinder, Elain Haight, Chuong Vu, Campaign for Fair Housing Elements, and the League of Women Voters of Los AltosMountain View Area 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 these 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 (RHNA), including for lower-income households, shall be completed no later than one year from the statutory deadline pursuant to Government Code section 65583, subdivision (c)(1)(A) and Government Code section 65583.2, subdivision (c). Otherwise, the local government’s housing element will no longer comply with State Housing Element Law, and HCD may revoke its finding of substantial compliance pursuant to Government Code section 65585, subdivision (i). 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 these rezones are completed.

Item 4.1 Attachment 2

Sofia Mangalam, Director

Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the town should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and 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.

Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the 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 the work and assistance the Town’s housing element team provided during the update and review. 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 Reid Miller, of our staff, at [email protected].

Sincerely,
Paul McDougall
Senior Program Manager
Enclosure

Town of Los Altos Hills’ 6th Cycle (2023-2031) Draft Housing Element Page 1

APPENDIX

TOWN OF LOS ALTOS HILLS
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. Specifically, the prior element included Program 19 (Support Foothill College). This Program was geared toward promoting housing variety and affordability, housing mobility and inclusion into the Town given the lack of multifamily zoning. Yet, the current element does not evaluate past commitments, progress or effectiveness and merely states a new program is included. For example, the Program committed to amend the general plan and zoning to permit multifamily as well as meeting with developers and applying for funding to encourage affordable multifamily development.

The element omits the depth and importance of this commitment and did not discuss or evaluate the effectiveness of multifamily zoning, lack of alternative measures taken and outreach efforts. To address this requirement, the element must fully describe past commitments, progress in implementation, evaluate effectiveness and then discuss appropriate adjustments in the current planning period. Given the apparent lack of effectiveness and success in developing multifamily choices and affordability, this analysis should particularly focus on zoning for a variety of housing types, including multifamily and discuss significant actions to promote housing choice, affordability, and mobility to facilitate inclusion beyond the regional housing need allocation (RHNA) and beyond complying with related state laws (e.g., ADU law and SB 9).

Town of Los Altos Hills’ 6th Cycle (2023-2031) Draft Housing Element Page 2 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).) Income and Racial Concentration of Affluence (RCAA): The element briefly mentions incomes in the Town compared to the region as well as the entire Town’s status as a RCAA. 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 (not limited to the RHNA).

Identified Sites and Affirmatively Furthering Fair Housing (AFFH): The element includes some general discussion and conclusions that identified sites for lower-income households, while concentrated on three sites in a proposed multifamily housing overlay, do not exacerbate existing patterns of development in the Town. In addition, the element should include analysis to support these conclusions, including the number of units per site by income group for each of the AFFH categories relative to the existing patterns (number of households), impacts on patterns of disproportionate housing needs (e.g., overpayment, overcrowding, displacement) and expanding on the reasoning for apparently isolating the RHNA for lower-income households. Further, if the inventory continues to isolate the RHNA for lower-income households in certain areas, the element must have commensurate programs related to housing mobility and new opportunities in higher opportunity areas (beyond RHNA and throughout the Town) to promote inclusion and AFFH throughout the Town.

Local Data and Knowledge: The element does not address this requirement. The element must include local data, knowledge, and other relevant factors to discuss and analyze any unique attributes about the Town related to fair housing issues. The housing 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. For example, the element could include information from code enforcement officers related to housing conditions, lack of public investment in affordable housing and relationships with the college.

Contributing Factors to Fair Housing Issues: Based on the outcomes of a complete analysis, the element should re-assess contributing factors and prioritize those factors then formulate appropriate policies and programs.

2. Include an analysis of population and employment trends and documentation of projections and a quantification of the locality's existing and projected needs for all income levels, including extremely low-income households. (Gov. Code, § 65583, subd. (a)(1).)

Town of Los Altos Hills’ 6th Cycle (2023-2031) Draft Housing Element Page 3 Extremely Low Income (ELI): While the element reports on households by income and mentions ELI households, it must analyze the housing needs of ELI households to formulate appropriate policies and programs. The analysis should address trends, tenure, overpayment, overcrowding and other characteristics and examine resources, disproportionate housing needs and the magnitude of the gap in addressing housing needs. Based on the outcomes of the analysis, the element should add or modify programs as appropriate.

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).)
Realistic Residential Capacity: While the element notes a lack of past trends or experience with multifamily development, it must still include a methodology for calculating residential capacity and account for land use controls and recent experience, including affordability.

To address this requirement, the element could utilize a minimum density and no further analysis is required. Otherwise, the element could examine trends in the broader region in comparable zones by listing developments by zones, allowable and built density and affordability. In addition, since the element is utilizing an overlay zone, uses in the base zoning are still allowed and the methodology should account for the likelihood that development will occur or not occur according to the uses allowed by the base zoning. For example, the element could explain interest in multifamily development and add or modify programs to establish incentives for multifamily development and evaluate (mid-planning period) the effectiveness of the new zone in promoting multifamily development, including appropriate responses if the zoning is not effective. Alternatively, the element could commit to replace the base zoning with a multifamily zone instead of an overlay zone.

Suitability of Nonvacant Sites: The element identifies nonvacant sites to accommodate the regional housing need for households of all incomes. not adequate to demonstrate the suitability of these sites. A complete analysis should describe the methodology used to determine the additional development potential within the planning period. The methodology must consider factors including the extent to which existing uses may impede additional residential development, including market demand for the current uses, leases or other indicators of turnover in uses.

Additionally, HCD received several public comments related to the lack of availability of identified sites such as owners of both the Foothill College site and the St. Nicholas Catholic School site explaining no interest in residential development in the planning period. While expressed interest in development is not necessarily required for sites to be used in the Town’s sites inventory, statements made by these property owners seem to indicate that residential development on these sites is highly unlikely in the planning period, especially at the densities and affordability levels indicated in the element. The element should address this lack of owner interest in development and provide alternative sites as needed to accommodate the Town’s RHNA.

Town of Los Altos Hills’ 6th Cycle (2023-2031) Draft Housing Element Page 4 Finally, while the element notes that greater than 50 percent of the lower-income RHNA is identified on vacant sites, upon a complete analysis of identified sites, it this conclusion changes, specific actions are necessary if the housing element relies upon nonvacant sites to accommodate more than 50 percent of the RHNA for lower-income households. For your information, the housing element must demonstrate existing uses are not an impediment to additional residential development and will likely discontinue in the planning period. 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.

Large Sites: Sites greater than ten acres are deemed inadequate to accommodate housing for lower-income households 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 these sites. The element currently discusses how smaller portions of larger sites will be used toward the lower-income RHNA. However, the element should discuss how these smaller portions will be established and add or modify programs to encourage appropriately sized parceling or site planning. For example, the analysis could describe interest and plans from property owners or comparable developments in nearby communities.

Senate Bill 9 (Statutes of 2021) Projections: The element is projecting 32 units that will be developed based on the passage of SB 9 (Statutes of 2021) to accommodate a portion of its above moderate income RHNA. To utilize projections based on SB 9 legislation, the element must; 1) include a site-specific inventory of sites where SB 9 projections are being applied; 2) include a nonvacant sites analysis demonstrating the likelihood of redevelopment and that the existing use will not constitute as an impediment for additional residential use and; 3) include programs and policies that establish zoning and development standards early in the planning period and implement incentives to encourage and facilitate development. 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.

Accessory Dwelling Units (ADU): The element uses the Association of Bay Area analysis of ADU rents. However, these assumptions should also consider the Town’s survey information and market rents from comparable and nearby communities and projections and affordability assumptions should consider other relevant factors such as availability of the units for rent.

Availability of Infrastructure: While the element includes some discussion of water and sewer capacity, it should specifically address whether sufficient total capacity is available or planned to accommodate the RHNA and modify Program B-8 (Infrastructure) as appropriate based on the outcomes of the analysis.

Environmental Constraints: While the element generally describes potential environmental constraints, it must still describe how these conditions relate to the St. Nicholas Catholic School and Twin Oaks Court Sites. In addition, the element should discuss any other known environmental or other conditions (e.g., shape, contamination, easements, accessibility) that could preclude or impact housing development on identified sites in the planning period.

C no

Town of Los Altos Hills’ 6th Cycle (2023-2031) Draft Housing Element Page 5 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.

Zoning for a Variety of Housing Types:
• Employee Housing: The element includes a program to amend zoning to permit employee housing similar to single-family uses pursuant to Health and Safety Code section 17021.5. However, the element should also discuss compliance with Health and Safety Code sections 17021.6 and 17021.8 and add or modify programs if necessary. For example, 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 zones allowing agricultural uses. • Emergency Shelters: The element notes emergency shelters are permitted in the R-A zone but should also clarify these uses are permitted without discretionary action. In addition, the element lists several development standards that may impact capacity and the analysis should account for these factors. The element should also include specific commitment to amend development standards which appear to be constraints or contrary to state law including spacing or proximity provisions, bed limits and parking requirements. Finally, if intending to identify a new zone, the element should discuss potential capacity and include specific commitment to amend zoning appropriately, including development standards that comply with Government Code section 65583, subdivision (a)(4). Finally, statute was recently amended to specify how to demonstrate suitable sites and sufficient capacity to accommodate the need for emergency shelters. Future submittals may need to address these requirements. For more information and applicable timing, see HCD’s AB 2993 memorandum at
https://www.hcd.ca.gov/sites/default/files/docs/planning-and-community/ab2339- notice.pdf.

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: While the element generally describes land-use controls and identifies constraints on development, it then concludes the new multifamily overlay zone will address these constraints. However, the element should discuss the constraints on existing allowable uses and add or modify programs as appropriate. In addition, the element, based on public feedback (p. 9) notes the line contour formula may be a constraint but should include specific analysis as a potential constraint. This

Town of Los Altos Hills’ 6th Cycle (2023-2031) Draft Housing Element Page 6 analysis should also discuss story poles. The analysis should address impacts on housing supply (number of units), cost, feasibility, timing and ability to achieve maximum densities.

In addition, the Town does not contain any provisions for development on sites less than one acre, severely impacting housing choices since Town incorporation (p. 112) and there are no multifamily units in the Town. Essentially, there is a lack of a variety of minimum lot sizes and allowable densities. The lack of a variety of lot sizes and densities can impact housing supply, choices and affordability. As a result, the element should include analysis of the impacts of a large lot land use pattern and include programs as appropriate such as establish zoning for a variety of lot sizes and densities regardless of RHNA. These programs should further commit to appropriate development standards to facilitate intended densities.

Finally, the element lists various standards to implement Government Code sections 65852.21 and 66411.7 (SB 9) but should also analyze those standards, compliance with the law and add or modify programs as appropriate to comply with state law.

Fees and Exaction: The element lists total development fees for single-family and multifamily development but should also list the various fees that comprise the total fees per unit. For example, the element should list and evaluate the various impact fees per unit for impacts on housing cost.

Processing and Permit Procedures: While the element generally describes processing and permitting procedures, it must still list and evaluate the site development permit and design review, including typical approval findings, typical number of hearings if applicable, and timing and then evaluate impacts on housing supply, cost, feasibility and approval certainty.

Constraints on Housing for Persons with Disabilities: The element concludes the Town has a definition of family that does pose a constraint to housing for persons with disabilities. However, the element should evaluate its potential impacts, including impacts on unrelated persons. For example, the element could explain the application of provisions such as “close social or economic or psychological commitments to each other” and whether that impacts unrelated persons.

On/Off-Site Improvements: The element generally describes some on-site improvements but identify the actual standards and any off-site improvements applied to typical development then analyze impacts on housing costs and add or modify programs if appropriate.

Codes and Enforcement: The element explains that code enforcement is generally reactive in response to complaints but should also discuss which building code is utilized (e.g., 2022) and identify and analyze any local amendments for impacts on housing costs.

Town of Los Altos Hills’ 6th Cycle (2023-2031) Draft Housing Element Page 7 Other Local Ordinances: The element must analyze any locally adopted ordinances that directly impacts the cost and supply or residential development (e.g., inclusionary requirements, short term rentals, growth controls).

5. An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including… …the length of time between receiving approval for a housing development and submittal of an application for building permits for that housing development that hinder the construction of a locality’s share of the regional housing need in accordance with Government Code section 65584... (Gov. Code, § 65583, subd. (a)(6).) Approval Times: The element must identify the length of time between receiving approval for housing development and submittal of application for building permits and discuss any hindrances on construction.

C. Housing Programs

1. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of 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 an additional shortfall of sites or zoning available to encourage a variety of housing types. Additionally, the element should be revised as follows:
• Shortfall of Sites: The element describes a shortfall of sites and indicates rezoning will occur to accommodate the RHNA. While the element includes Program A-1 (Availability of Adequate Sites for New Housing to meet the RHNA), it must specifically commit to acreage, allowable densities, appropriate development standards, anticipated units and meet all requirements pursuant to Government Code section 65583.2, subdivisions (h) and (i). • Program A-3 (Town-owned Sites): The Program should go beyond reviewing sites and commit to identify sites, including a schedule of actions to facilitate development, compliance with the Surplus Land Act and numerical objectives. • Program E-2 (Emergency Shelters): The Program should specifically commit to remove or modify development standards or identify an additional zone based on a complete analysis as described in Finding B3.

Town of Los Altos Hills’ 6th Cycle (2023-2031) Draft Housing Element Page 8 • Program E-4 (Transitional and Supportive Housing): The Program commits to amend zoning to comply with AB 2162 (By-right Permanent Supportive Housing) but should also specifically commit to permit transitional and supportive housing as a residential use in all zones allowing residential uses and only subject to those restrictions that apply to other residential dwellings of the same type in the same zone. These requirements are separate and in addition to AB 2162. • Program E-9 (Single Room Occupancy (SRO)): The Program should explore and establish additional zoning opportunities given the lack of results in the prior planning period.
• Future Zones: The element should commit to allow uses as appropriate in any future zones, including in the multifamily zones or other zones that may be created as a result of a complete analysis of zoning for a variety of housing types. For example, future zoning may need to incorporate transitional and supportive housing and ADUs.

2. 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).) The element must include a program to assist in the development of adequate housing to meet the needs of lower and moderate-income households, including ELI and special needs households. These actions should be significant and specific, given the lack of implementation and results in the prior planning periods. Examples of actions include proactive an annual outreach to developers of affordable housing, assisting with funding, supporting funding applications, land acquisition, priority processing, fee waivers, concessions and incentives beyond State Density Bonus Law, assistance with infrastructure and site improvements and monitoring and adjustment at least annually.

3. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities... (Gov. Code, § 65583, subd. (c)(3).)
As noted in Findings B4 and B5, 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.

4. 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 must include a complete analysis of AFFH. The element must be revised to add goals and actions based on the outcomes of a complete analysis. 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.

Town of Los Altos Hills’ 6th Cycle (2023-2031) Draft Housing Element Page 9 Actions must have specific commitment, discrete timing, geographic targeting and metrics or numerical targets. Programs, as appropriate, must address housing mobility enhancement, new housing choices and affordability in higher opportunity areas (throughout the Town), place-based strategies for community preservation and revitalization and displacement protection. For example, the element must add significant and meaningful housing mobility and new housing choices and affordability actions (not limited to the RHNA) to overcome the existing patterns in the Town related to the broader region.

5. 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).) While the element includes Program A-7 (ADU Tracking and Monitoring) to monitor ADU production and affordability and adopt another ADU program, if necessary, the Program should commit to rezoning if production and affordability is significantly not meeting assumptions in the sites inventory.

development of lower and moderate-income housing units. Please refer to the attached spreadsheet which details the RHNA deficits.

This point was missed and worse it was suggested without any factual basis there is no requirement to adjust these sites to reflect the property owners known intent “until project approval”. Given this is the Staff’s position, LGCA strongly suggests the Town seek HCD technical assistance with regard to the SB 330 applications for sites B-1 and D-1 so a site inventory can be developed which would meet Housing Element Law and thus avoid more delay in obtaining HCD site certification. The Town’s analytical and evidentiary obligations under the Housing Element Law are significant and the penalties associated with non-compliance are severe.

LGCA is also troubled by the Staff’s recommendation not to “introduce new information that was not previously reviewed” simply because the new information “may delay HCD’s certification of the Town’s Housing Element”. First, choosing not to disclose to HCD the SB 330 applications were received subsequent to filing on March 31, 2023 the Housing Element for HCD review, while knowing the property owners have no intention of developing the sites as shown in the site inventory is highly questionable. What is the legal basis for not disclosing the development intentions of the property owners knowing this information most likely would impact HCD’s certification?
Secondly, it is unclear to us why there would be a delay in certification if more sites were added to the site inventory for lower income categories and the development capacities for B-1 and D-1 were adjusted to reflect the property owners’ plans. In fact, once HCD is fully informed of the SB 330 applications and the inability to meet RHNA by income category, it is highly likely an unchanged site inventory will be rejected resulting in further delay in certification which is the very outcome the Town is trying to avoid.

With regard to HCD’s comment letter to Los Altos Hills, you fail to mention the most important point HCD made which is on point with adding more sites. In the comment letter on page 3, HCD clearly states that when property owners indicate residential development is highly unlikely in the planning period, especially at the densities and affordability levels indicated in the element, the element should address this lack of owner interest and provide alternative sites as needed to accommodate the Town’s RHNA. HCD could not have made this clearer. This should provide sufficient evidence that the Town needs to add more sites to accommodate the Town’s RHNA.

Lastly with regard to CFH vs. La Cañada Flintridge there are number of important issues to take note of. First, in order to avoid the statutory bar under section 65588(c)(4)(C)(iii) the Town must complete the rezoning required by sections 65583(c)(1)(A) and 65583.2(c). Secondly, the Town cannot be considered to be in substantial compliance until the rezoning is complete and the builder’s remedy will remain available to property owners until substantial compliance. Lastly, the Town cannot move forward with rezoning until the Housing Element has been certified by HCD and the Town adopts a substantially compliant Housing Element. This is why a certified site inventory must be obtained before rezoning can be completed.

Please let me know if you have any questions. The LGCA goal is the same as the Town’s - namely to

full comply with RHNA and achieve Housing Element certification as quickly as possible.

Thank you,
Phil Koen
On Behalf of LGCA
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On Aug 4, 2023, at 12:29 PM, Gabrielle Whelan <[email protected]> wrote:

Hello, Mr. Koen.

Thank you for your thoughtful email.

One of your questions was about the need for the Town to expand its Sites Inventory in order to gain HCD certification of the Town’s Housing Element. Your question is precipitated by the fact that the Town has received several SB 330 pre-applications, which describe projects with fewer units and fewer affordable units than were allocated to the sites in the Town’s Housing Element Sites Inventory.

As you know, if sites are developed with fewer units and fewer affordable units than described in the Sites Inventory and there is an insufficient buffer to accommodate those sites elsewhere, the state “no net loss” provisions kick in. The state “no net loss” provisions require that, within six months of a project approval resulting in a shortfall, the Town must rezone sufficient sites elsewhere to make up the difference.

The Town’s adopted Housing Element contains a buffer of 16% to accommodate instances in which planning applications are approved at a density below the density described in the Town’s Housing Element (The most recent proposed Housing Element revisions submitted to HCD contain a buffer of 25%). The second phase of the North 40 project, the Post Office project, and the Los Gatos Lodge project have submitted SB 330 pre-applications that propose density

and affordability distributions below the density and affordability distributions described in the Town’s Housing Element. In the event that formal planning applications are approved that use up the Town’s buffer, the Town will need to comply with the state’s “no net loss” provisions. The Town will have six months from project approval to do so. Town staff has discussed the SB 330 preapplications with the HCD reviewer at least twice and HCD knows that the Town intends to comply with the “no net loss” provisions if a project approval results in a shortfall.

While there is no requirement to adjust the Sites Inventory until project approval, there is nothing prohibiting the Town from increasing the buffer now. However, Town staff is not
recommending that the Town do so at this juncture. Town staff is concerned that making the adjustment to the Sites Inventory at this point in time may delay HCD’s certification of the Town’s Housing Element by introducing new information that was not previously reviewed. That said, HCD’s May comment letter asks for the Town to provide more documentation that there is a “realistic possibility” that the sites in the sites inventory will be redeveloped. Town staff is currently working with the Town’s consultant to provide an analysis of the “realistic possibility” of redevelopment for HCD’s review. If this analysis demonstrates that there is in fact not a “realistic possibility” of redevelopment, Town staff will recommend that the Sites Inventory be expanded.

Thank you also for providing a copy of HCD’s comment letter to Los Altos Hills. I read that letter to say that, if the jurisdiction does not have a certified Housing Element within 120 days of January 31, 2023, its rezonings must be completed no later than January 31, 2024. If the jurisdiction has not completed its rezonings by then, its Housing Element will not be able to be certified until the rezonings have been completed. (That comports with the Town’s
understanding of the statutory requirement.) In order to make sure that the Town of Los Gatos’s necessary rezonings are completed by

January 31st, Town staff is recommending that the Town process its rezonings concurrently with seeking HCD certification.

With regard to the court case, are you referring to the Californians for Home Ownership v. La Canada Flintridge decision? For jurisdictions that are part of the Southern California Association of Governments, state law provides that a Housing Element is out of compliance if HCD had not approved the Element by October 15, 2022, and the jurisdiction had not adopted the required rezoning by October 15, 2022. For jurisdictions like Los Gatos that are part of the Association of Bay Area Governments, if HCD has not certified a Housing Element by May 31, 2023, the jurisdiction must adopt all required zoning by January 31, 2024, or the Housing Element will be out of compliance with state law. In the La Canada Flintridge decision, the court held that the jurisdiction’s Housing Element was out of compliance with state law because the jurisdiction had not completed the required rezoning by the October 15, 2022, deadline.

Here, Town staff is working to complete the rezonings prior to the January 31, 2024, deadline.

Please let me know if you have any follow-up questions.

Gabrielle Whelan ● Town Attorney
Town Attorney’s Office ● 110 E Main Street, Los Gatos, CA 95030 Desk: 408.354.6818 ● [email protected]
www.losgatosca.gov ● https://www.facebook.com/losgatosca From: Phil Koen <[email protected]>
Sent: Thursday, July 27, 2023 3:20 PM
To: Gabrielle Whelan <[email protected]>
Subject: HCD-comment-letter-January-25-2023.pdf
[EXTERNAL SENDER]
Hello Gabrielle,
I hope you are having a good summer.

I’m writing to you in the hope you will advise the Staff to conform the current HE site

inventory to the SB 330 applications that have been filed for the N40 and the Los Gatos Lodge parcels. These applications are materially different in terms of total number of units, development densities, and the income distribution of units to be developed when compared to the site inventory.

As you know, the housing element relies on these two non-vacant development sites to accommodate more than 50% of the RHNA for lower income households. Therefore the housing element must demonstrate based on substantial evidence that the sites will reasonably be developed as planned in the next 8 years. In reading the SB 330 applications it is very clear that the developers have no intention of developing the parcels as planned in the site inventory.

Joel Paulson has gone on the record at the last General Plan Committee meeting categorically stating that the site inventory did not have to be adjusted to reflect the SB 330 applications. We strongly differ with that view and hope you will agree with us.

I have attached the HCD comment letter for Los Altos Hills which squarely addresses this point. From a simple reading of the letter, HCD will require the Town to make the adjustment to conform to the SB 330 applications which will require more parcels to be added to the site inventory to make up the difference. The only reason HCD has not made this comment to the Town to date is HCD is not aware of these developments.

The SB 330 applications were received after the Town’s submitted the last draft HE to HCD for review.

You should work under the assumption HCD will be made aware of these applications.

The Town should be proactive and add more sites now to address the shortfall in low income units.

If the Town doesn’t add more parcels and submits the current draft of the site inventory, HCD will undoubtedly reject the HE and require more changes to be made which will only further delay the certification process. This only harms the Town even more.

Lastly, a recent court case has found that the builders remedy will remain available to developers until the Town obtains HCD certification and completes all required zoning.

We hope you agree with our position and will advise the Staff to immediately add more parcels to the site inventory.

Thanks,
Phil Koen

Analysis of adequacy of Site Inventory
Zipcode APN VL L M A Total Acres
N40 Parcels - Site D-1 inventory
14859 Los Gatos Boulevard 95032 424-07-094 35 17 17 18 87 2.9 16392 Los Gatos Boulevard 95032 424-07-095 9 4 5 5 23 0.78 16260 Burton Road 95032 424-07-053 5 2 3 3 13 0.44
16250 Burton Road 95032 424-07-009 5 2 3 3 13 0.44
14917 Los Gatos Boulevard 95032 424-07-081 45 22 22 23 112 3.74 14925 Los Gatos Boulevard 95032 424-07-115 73 36 36 37 182 6.07 Los Gatos Boulevard 95032 424-07-116 12 6 6 7 31 1.02
>>Total 184 89 92 96 461 15.39
SB 330 Application received by Town 0 88 0 349 437
(Shortfall)/Excess from Site Inventory D-1 (184) (1) (92) 253 (24) Los Gatos Lodge - Site B-1 inventory
50 Los Gatos-Saratoga Road 95030 529-24-032 76 75 51 9 211 7.04 Los Gatos-Saratoga Road 95030 529-24-001 9 9 9 18 45 1.49 Los Gatos-Saratoga Road 95030 529-24-003 1 2 2 3 8 0.28 >>Total 86 86 62 30 264 8.81
SB 330 Application received by Town 0 32 0 126 158
(Shortfal)/Excess from Site Inventory B-1 (86) (54) (62) 96 (106) >>Total Shortfall from Site Inventory for B-1 and D-1 (270) (55) (154) 349 (130) Table 10-3 Total Estimated Housing Site Inventory 646 362 347 642 1,997 Adjusted Table 10.3 Total Estimated Housing Site Inventory 376 307 193 991 1,867 ADU 20 60 60 60 200
Senate Bill 9 96 96
Pipeline Projects 1 200 201
Total 396 368 253 1,347 2,364
RHNA 6th Cycle 537 310 320 826 1,993
(Shortfall)/Excess over RHNA (141) 58 (67) 521 371

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 25, 2023
Sofia Mangalam, Director
Planning and Building Department
Town of Los Altos Hills
26379 Fremont Road
Los Altos Hills, CA 94022
Dear Sofia Mangalam:

RE: Town of Los Altos Hills’ 6th Cycle (2023-2031) Draft Housing Element Thank you for submitting the Town of Los Altos Hills’ (Town) draft housing element that was received for review on October 27, 2022 along with revisions on January 9, 2023.

Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. Our review was facilitated by a conversation on December 22, 2022 with yourself, City Manager Peter Pirnejad, and attorneys Steve Mattas and Claire Lai from Meyers Nave. In addition, HCD considered comments from Kevin Meyer, YIMBY Law, South Bay YIMBY, Sasha Zborzek, Adam Buchbinder, Elain Haight, Chuong Vu, Campaign for Fair Housing Elements, and the League of Women Voters of Los AltosMountain View Area 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 these 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 (RHNA), including for lower-income households, shall be completed no later than one year from the statutory deadline pursuant to Government Code section 65583, subdivision (c)(1)(A) and Government Code section 65583.2, subdivision (c). Otherwise, the local government’s housing element will no longer comply with State Housing Element Law, and HCD may revoke its finding of substantial compliance pursuant to Government Code section 65585, subdivision (i). 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 these rezones are completed.

Item 4.1 Attachment 2

Sofia Mangalam, Director

Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the town should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and 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.

Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the 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 the work and assistance the Town’s housing element team provided during the update and review. 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 Reid Miller, of our staff, at [email protected].

Sincerely,
Paul McDougall
Senior Program Manager
Enclosure

Town of Los Altos Hills’ 6th Cycle (2023-2031) Draft Housing Element Page 1

APPENDIX

TOWN OF LOS ALTOS HILLS
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. Specifically, the prior element included Program 19 (Support Foothill College). This Program was geared toward promoting housing variety and affordability, housing mobility and inclusion into the Town given the lack of multifamily zoning. Yet, the current element does not evaluate past commitments, progress or effectiveness and merely states a new program is included. For example, the Program committed to amend the general plan and zoning to permit multifamily as well as meeting with developers and applying for funding to encourage affordable multifamily development.

The element omits the depth and importance of this commitment and did not discuss or evaluate the effectiveness of multifamily zoning, lack of alternative measures taken and outreach efforts. To address this requirement, the element must fully describe past commitments, progress in implementation, evaluate effectiveness and then discuss appropriate adjustments in the current planning period. Given the apparent lack of effectiveness and success in developing multifamily choices and affordability, this analysis should particularly focus on zoning for a variety of housing types, including multifamily and discuss significant actions to promote housing choice, affordability, and mobility to facilitate inclusion beyond the regional housing need allocation (RHNA) and beyond complying with related state laws (e.g., ADU law and SB 9).

Town of Los Altos Hills’ 6th Cycle (2023-2031) Draft Housing Element Page 2 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).) Income and Racial Concentration of Affluence (RCAA): The element briefly mentions incomes in the Town compared to the region as well as the entire Town’s status as a RCAA. 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 (not limited to the RHNA).

Identified Sites and Affirmatively Furthering Fair Housing (AFFH): The element includes some general discussion and conclusions that identified sites for lower-income households, while concentrated on three sites in a proposed multifamily housing overlay, do not exacerbate existing patterns of development in the Town. In addition, the element should include analysis to support these conclusions, including the number of units per site by income group for each of the AFFH categories relative to the existing patterns (number of households), impacts on patterns of disproportionate housing needs (e.g., overpayment, overcrowding, displacement) and expanding on the reasoning for apparently isolating the RHNA for lower-income households. Further, if the inventory continues to isolate the RHNA for lower-income households in certain areas, the element must have commensurate programs related to housing mobility and new opportunities in higher opportunity areas (beyond RHNA and throughout the Town) to promote inclusion and AFFH throughout the Town.

Local Data and Knowledge: The element does not address this requirement. The element must include local data, knowledge, and other relevant factors to discuss and analyze any unique attributes about the Town related to fair housing issues. The housing 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. For example, the element could include information from code enforcement officers related to housing conditions, lack of public investment in affordable housing and relationships with the college.

Contributing Factors to Fair Housing Issues: Based on the outcomes of a complete analysis, the element should re-assess contributing factors and prioritize those factors then formulate appropriate policies and programs.

2. Include an analysis of population and employment trends and documentation of projections and a quantification of the locality's existing and projected needs for all income levels, including extremely low-income households. (Gov. Code, § 65583, subd. (a)(1).)

Town of Los Altos Hills’ 6th Cycle (2023-2031) Draft Housing Element Page 5 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.

Zoning for a Variety of Housing Types:
• Employee Housing: The element includes a program to amend zoning to permit employee housing similar to single-family uses pursuant to Health and Safety Code section 17021.5. However, the element should also discuss compliance with Health and Safety Code sections 17021.6 and 17021.8 and add or modify programs if necessary. For example, 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 zones allowing agricultural uses. • Emergency Shelters: The element notes emergency shelters are permitted in the R-A zone but should also clarify these uses are permitted without discretionary action. In addition, the element lists several development standards that may impact capacity and the analysis should account for these factors. The element should also include specific commitment to amend development standards which appear to be constraints or contrary to state law including spacing or proximity provisions, bed limits and parking requirements. Finally, if intending to identify a new zone, the element should discuss potential capacity and include specific commitment to amend zoning appropriately, including development standards that comply with Government Code section 65583, subdivision (a)(4). Finally, statute was recently amended to specify how to demonstrate suitable sites and sufficient capacity to accommodate the need for emergency shelters. Future submittals may need to address these requirements. For more information and applicable timing, see HCD’s AB 2993 memorandum at
https://www.hcd.ca.gov/sites/default/files/docs/planning-and-community/ab2339- notice.pdf.

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: While the element generally describes land-use controls and identifies constraints on development, it then concludes the new multifamily overlay zone will address these constraints. However, the element should discuss the constraints on existing allowable uses and add or modify programs as appropriate. In addition, the element, based on public feedback (p. 9) notes the line contour formula may be a constraint but should include specific analysis as a potential constraint. This

Town of Los Altos Hills’ 6th Cycle (2023-2031) Draft Housing Element Page 6 analysis should also discuss story poles. The analysis should address impacts on housing supply (number of units), cost, feasibility, timing and ability to achieve maximum densities.

In addition, the Town does not contain any provisions for development on sites less than one acre, severely impacting housing choices since Town incorporation (p. 112) and there are no multifamily units in the Town. Essentially, there is a lack of a variety of minimum lot sizes and allowable densities. The lack of a variety of lot sizes and densities can impact housing supply, choices and affordability. As a result, the element should include analysis of the impacts of a large lot land use pattern and include programs as appropriate such as establish zoning for a variety of lot sizes and densities regardless of RHNA. These programs should further commit to appropriate development standards to facilitate intended densities.

Finally, the element lists various standards to implement Government Code sections 65852.21 and 66411.7 (SB 9) but should also analyze those standards, compliance with the law and add or modify programs as appropriate to comply with state law.

Fees and Exaction: The element lists total development fees for single-family and multifamily development but should also list the various fees that comprise the total fees per unit. For example, the element should list and evaluate the various impact fees per unit for impacts on housing cost.

Processing and Permit Procedures: While the element generally describes processing and permitting procedures, it must still list and evaluate the site development permit and design review, including typical approval findings, typical number of hearings if applicable, and timing and then evaluate impacts on housing supply, cost, feasibility and approval certainty.

Constraints on Housing for Persons with Disabilities: The element concludes the Town has a definition of family that does pose a constraint to housing for persons with disabilities. However, the element should evaluate its potential impacts, including impacts on unrelated persons. For example, the element could explain the application of provisions such as “close social or economic or psychological commitments to each other” and whether that impacts unrelated persons.

On/Off-Site Improvements: The element generally describes some on-site improvements but identify the actual standards and any off-site improvements applied to typical development then analyze impacts on housing costs and add or modify programs if appropriate.

Codes and Enforcement: The element explains that code enforcement is generally reactive in response to complaints but should also discuss which building code is utilized (e.g., 2022) and identify and analyze any local amendments for impacts on housing costs.

Town of Los Altos Hills’ 6th Cycle (2023-2031) Draft Housing Element Page 7 Other Local Ordinances: The element must analyze any locally adopted ordinances that directly impacts the cost and supply or residential development (e.g., inclusionary requirements, short term rentals, growth controls).

5. An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including… …the length of time between receiving approval for a housing development and submittal of an application for building permits for that housing development that hinder the construction of a locality’s share of the regional housing need in accordance with Government Code section 65584... (Gov. Code, § 65583, subd. (a)(6).) Approval Times: The element must identify the length of time between receiving approval for housing development and submittal of application for building permits and discuss any hindrances on construction.

C. Housing Programs

1. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of 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 an additional shortfall of sites or zoning available to encourage a variety of housing types. Additionally, the element should be revised as follows:
• Shortfall of Sites: The element describes a shortfall of sites and indicates rezoning will occur to accommodate the RHNA. While the element includes Program A-1 (Availability of Adequate Sites for New Housing to meet the RHNA), it must specifically commit to acreage, allowable densities, appropriate development standards, anticipated units and meet all requirements pursuant to Government Code section 65583.2, subdivisions (h) and (i). • Program A-3 (Town-owned Sites): The Program should go beyond reviewing sites and commit to identify sites, including a schedule of actions to facilitate development, compliance with the Surplus Land Act and numerical objectives. • Program E-2 (Emergency Shelters): The Program should specifically commit to remove or modify development standards or identify an additional zone based on a complete analysis as described in Finding B3.

Town of Los Altos Hills’ 6th Cycle (2023-2031) Draft Housing Element Page 8 • Program E-4 (Transitional and Supportive Housing): The Program commits to amend zoning to comply with AB 2162 (By-right Permanent Supportive Housing) but should also specifically commit to permit transitional and supportive housing as a residential use in all zones allowing residential uses and only subject to those restrictions that apply to other residential dwellings of the same type in the same zone. These requirements are separate and in addition to AB 2162. • Program E-9 (Single Room Occupancy (SRO)): The Program should explore and establish additional zoning opportunities given the lack of results in the prior planning period.
• Future Zones: The element should commit to allow uses as appropriate in any future zones, including in the multifamily zones or other zones that may be created as a result of a complete analysis of zoning for a variety of housing types. For example, future zoning may need to incorporate transitional and supportive housing and ADUs.

2. 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).) The element must include a program to assist in the development of adequate housing to meet the needs of lower and moderate-income households, including ELI and special needs households. These actions should be significant and specific, given the lack of implementation and results in the prior planning periods. Examples of actions include proactive an annual outreach to developers of affordable housing, assisting with funding, supporting funding applications, land acquisition, priority processing, fee waivers, concessions and incentives beyond State Density Bonus Law, assistance with infrastructure and site improvements and monitoring and adjustment at least annually.

3. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities... (Gov. Code, § 65583, subd. (c)(3).)
As noted in Findings B4 and B5, 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.

4. 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 must include a complete analysis of AFFH. The element must be revised to add goals and actions based on the outcomes of a complete analysis. 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.

Town of Los Altos Hills’ 6th Cycle (2023-2031) Draft Housing Element Page 9 Actions must have specific commitment, discrete timing, geographic targeting and metrics or numerical targets. Programs, as appropriate, must address housing mobility enhancement, new housing choices and affordability in higher opportunity areas (throughout the Town), place-based strategies for community preservation and revitalization and displacement protection. For example, the element must add significant and meaningful housing mobility and new housing choices and affordability actions (not limited to the RHNA) to overcome the existing patterns in the Town related to the broader region.

5. 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).) While the element includes Program A-7 (ADU Tracking and Monitoring) to monitor ADU production and affordability and adopt another ADU program, if necessary, the Program should commit to rezoning if production and affordability is significantly not meeting assumptions in the sites inventory.

PREPARED BY: Jennifer Armer, AICP
Planning Manager
Reviewed by: Town Manager, Town Attorney, Assistant Town Manager, and Community Development Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
MEETING DATE: 08/15/2023
ITEM NO: 15

ADDENDUM

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
DATE: August 11, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Receive and Discuss a Status Update on the 2023-2031 Housing Element Process
REMARKS:

The staff report included a statement that at the time of the report’s preparation, the Town had not received any public comments. This statement should have been omitted from the report because a comment was received and included as Attachment 5.

Attachments received with the Staff Report:

1. Housing Element Update Timeline

2. Zoning and General Plan Amendments Timeline

3. Veronica Tam and Associates Proposal

4. Questions from the Vice Mayor

5. Public Comment received before 11:00 a.m. on August 10, 2023

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PREPARED BY: Jennifer Armer, AICP
Planning Manager
Reviewed by: Town Manager, Town Attorney, Assistant Town Manager, and Community Development Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
MEETING DATE: 08/15/2023
ITEM NO: 15

ADDENDUM B

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
DATE: August 14, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Receive and Discuss a Status Update on the 2023-2031 Housing Element Process
REMARKS:

Attachment 6 contains additional public comment received between 11:01 a.m., Friday, August 11, 2023, and 11:00 a.m., Monday, August 14, 2023.

Attachments previously received with the Staff Report:

1. Housing Element Update Timeline

2. Zoning and General Plan Amendments Timeline

3. Veronica Tam and Associates Proposal

4. Questions from the Vice Mayor

5. Public Comment received before 11:00 a.m. on August 10, 2023 Attachments received with this Addendum B:

6. Public Comment received between 11:01 a.m., August 11, 2023, and 11:00 a.m., August 14, 2023

This page is intentionally left blank

ATTACHMENT 6
From: Phil Koen
Sent: Friday, August 11, 2023 11:36 AM
To: Maria Ristow <[email protected]>; Mary Badame <[email protected]>; Matthew Hudes <[email protected]>; Rob Rennie <[email protected]>; [email protected] <[email protected]>
Cc: Wendy Wood <[email protected]>; Laurel Prevetti <[email protected]>; Joel Paulson <[email protected]>; jvannada
Subject: Agenda Item 15 - public comment

[EXTERNAL SENDER]

Dear Town Council Members,
In reference to Agenda Item #15, the Staff report on page 3 discusses meetings with HCD. The report discloses a meeting which occurred on June 20, 2023 during which “Town staff received some clarification on the comments received on May 30, 2023.” On August 4, 2023 I filed a PRA-2023-41 asking for all notes, emails, voicemails or other documents in the Staff’s possession which disclose all discussions between Staff and HCD as described in Ms. Whelan’s email to me received August 4, 2023. Presumably the June 20, 2023 was one of the two meetings Ms.

Whelan mentioned in her email.

I received a reply to the PRA stating that there were no records. I have attached the PRA and the Town’s response for your review.

I thought this information should be fully disclosed. I don’t understand how substantive conversations with HCD are not captured by Staff in any written memos or notes. Going forward I would suggest that all conversations with HCD be memorialized in writing so there is a clear record of discussions which can be shared with the Town Council and public.

Thank you,
Phil Koen

ATTACHMENT 6

ATTACHMENT 6

ATTACHMENT 6
From: Phil Koen
Sent: Friday, August 11, 2023 12:51 PM
To: Maria Ristow <[email protected]>; Mary Badame <[email protected]>; Rob Rennie <[email protected]>; Matthew Hudes <[email protected]>; [email protected] <[email protected]>
Cc: Joel Paulson <[email protected]>; Laurel Prevetti <[email protected]>; Wendy Wood <[email protected]>; Gabrielle Whelan <[email protected]> Subject: Agenda Item 15 - corrected table 10-3

[EXTERNAL SENDER]

Dear Town Council Members,
The Staff report discusses the site inventory and states that the most recent draft submitted to HCD contains a buffer of 25%. Table 10-3 did not show the total estimated units to be developed compared to RHNA plus a 25% buffer. The buffer was 15%. I have attached the most recent Table 10-3 published by the Town.

Once you adjust the buffer to 25%, the estimated development units for VL and Above Moderate income categories are a deficit of 5 units and 35 units respectively.

Therefore the statement that there is a 25% buffer for all income categories can not be made.

Thank you,
Phil Koen

10. Housing Element
July March 2023 HCD Draft Revised Draft 2023-2031 Housing Element 10-33 Table 10-3 Summary of Vacant and Underutilized Housing Sites Item Very Low Low Moderate Above
Moderate Total
Total Estimated Housing for Sites in
Inventory 646 362 347 642 1,997
Accessory Dwelling Units 20 60 60 60 200
Senate Bill 9 96 96
Pipeline Projects 1 200 201
Total 666 423 407 998 2,494
RHNA 537 310 320 826 1,993
Buffer (15 %) 81 46 48 124 299
RHNA + Buffer 618 356 368 950 2,292
Difference Between Housing Estimate and
RHNA + Buffer 48 67 39 48 202
Source: EMC Planning Group, Inc; Town of Los Gatos

10.3.3 Summary of Quantified Objectives
While the Town cannot control the amount of housing that is built during any specific period of time, the Town does intend to make an effort to achieve housing production at a level that is consistent with its RHNA.

Many programs and policies reduce barriers and create opportunities for a balanced community. These goals are essential to meeting the Town’s housing needs, but are more qualitative in nature. The 2,494 units that Los Gatos takes credit for on its Sites Inventory are sufficient to meet the Town’s RHNA of 1,993 units. Between Implementation Programs J, AS, and AU, it is assumed that 11 housing units will be rehabilitated, and all existing affordable units will be conserved or preserved. Los Gatos reasonably expects that a total of 2,494 units will be developed, as described in the tables below:

Table 10-4 2023-2031 Quantified Objectives
Income Category New Construction Rehabilitation ConstructionConservation/ Preservation
Very Low Income 666 5 0 49
Low Income 423 6 0136
Moderate Income 407 0 0179
Above Moderate Income 998 0 0114
Totals 2,494 11 0478
Source: Town of Los Gatos
 New Construction Objective: Reflects the Town’s 2023-2031 RHNA.  Rehabilitation Objective: Reflects goal to assist a total of 11 very low-income and low-income households through Implementation Programs J, AS, and AU.  Conservation/Preservation Objective: Reflects maintaining affordability on the current inventory of 257 Below Market Price (BMP) rental units, maintaining affordability of 107 Housing Choice Vouchers, and preserving 114 existing mobile home units in the Bonnie View mobile home park and Creekside Village.

The Town does not expect the following unit types to be at risk of conversation: BMP rental units; Housing Choice Vouchers; and existing mobile home units in mobile home parks.

I 25 0 134 178 80 207 499
250 0 671 388 400 1,033 2,492
25 35 1 7 1135 2 I