Los Gatos City Council
December 19, 2023

LOS GATOS PLANNING COMMISSION 11/15/2023
Item #2, Draft 2023-2031 Housing Element
39 1
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
because it’s also come up in other meetings as well. The out migration from California to other states that started picking up during the pandemic and hasn’t really changed much, has it had any impact at all on the State’s and HCD’s interest in pursuing all this AFFH? Has it had any
tampering of following through on everything that we’re being asked to do?
JENNIFER ARMER: Thank you for that question.

This is a topic and a question and concern that was brought up actually enough years back that it was part of the
General Plan update process, that there were these news articles and discussion of this, and there are different studies on what these numbers are, but at this point it is not changing what the requirements for the State are in terms of the housing capacity that communities need to
provide in their Housing Element.

COMMISSIONER HANSSEN: Thank you.

CHAIR BARNETT: I have one question, Ms. Tam, and
that is I gather you found HCD to be very responsive in terms of time on these iterations and you expect it to
continue to be the case. I assume that they’re overwhelmed, but it sounds like you’re managing. Can you comment on
that?

LOS GATOS PLANNING COMMISSION 11/15/2023
Item #2, Draft 2023-2031 Housing Element
40 1
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
VERONICA TAM: They are definitely overwhelmed,
and they are also understaffed; I think that’s probably a fair comment. They do have statutory deadlines to make, and so a lot of times what we do if we want to push them to respond faster is actually do a formal submittal, because then they are bound by a statutory deadline or (inaudible) timeline for you.

I do try to engage them in an informal kind of
review first, and to the extent I can get them to commit to responding faster through informal review I do try to do that, but informal reviews do run a risk, because they are not obligated to respond in a timely manner for informal review.

I think at this stage we want to do formal
reviews; that’s why we have submitted for the 60-day review and we’re getting a letter. At this stage the State is also starting their review of Housing Elements in the Monterey Bay and San Joaquin Valley areas, and so I think we run the risk of being pushed behind the line if we don’t commit them to a statutory required timeframe. So at this time I do recommend going through everything formal review, but we all try to have interim conversations with the State during the formal timeframe.

LOS GATOS PLANNING COMMISSION 11/15/2023
Item #2, Draft 2023-2031 Housing Element
41 1
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
CHAIR BARNETT: So would it be fair to say that
you’re in agreement with the Staff in terms of the probable timing for Planning Commission review and Council review? VERONICA TAM: Yes.

CHAIR BARNETT: Thank you. Commissioner Burnett.

COMMISSIONER BURNETT: Yes, thank you. A question
for Staff, a follow up question. What would be the most likely timeline for the certification of the Housing
Element if it didn’t happen on December 1st?
JENNIFER ARMER: Thank you for that question. As
was laid out in the Staff Report, our recommendation is that you continue this discussion until November 29th, and to add to what I was saying earlier with a little
specificity, if we want to allow time for the Town Council to consider the Housing Element before the end of the year, their final meeting is on December 19th, and the deadlines for putting an ad in the paper for this item to go to that meeting is actually on November 30th, and so that’s why the 29th is a critical date in that timeline, and we do need to include wording in that ad that reflects what the
recommendation from Planning Commission was. So that’s how we got to that timeline.

The hope, based on the description that Ms. Tam
has shared as well, is that once we have that meeting with

LOS GATOS PLANNING COMMISSION 11/15/2023
Item #2, Draft 2023-2031 Housing Element
42 1
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
Planning Commission and you’ve provided a recommendation based on the additional changes, we then get a formal
letter from the State on Friday, December 1st. We hope that at that point either all of the comments have been resolved or it is only a few minor issues, and so that any remaining revisions that need to be done are minor enough that they don’t need to come back to Planning Commission, that your recommendation can stand and can be brought to Town Council on the 19th along with any additional feedback based on the comment letter for December 1st.

CHAIR BARNETT: Thank you for those comments.

Helpful. I’m not seeing any hands raised, and I don’t have any more questions, so why don’t we move on to the issue of the continuance and see if there’s a motion for a
continuance of this hearing to November 29, 2023 at 7:00 o'clock. Commissioner Thomas.

COMMISSIONER THOMAS: I’m happy to do that, but I
do have a clarification question for Staff. So that’s going to be another special meeting on the 29th?
JENNIFER ARMER: That is correct, because it’s
not a regularly scheduled date for Planning Commission.

COMMISSIONER THOMAS: I move to continue this
item to a date certain of November 29, 2023 for a special meeting at 7:00pm.

LOS GATOS PLANNING COMMISSION 11/15/2023
Item #2, Draft 2023-2031 Housing Element
43 1
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
CHAIR BARNETT: Is there a second? Commissioner
Hanssen.

COMMISSIONER HANSSEN: I second the motion.

CHAIR BARNETT: I assume there’s no discussion,
so I’ll call for a raise of hands of those Commissioners in favor, and that’s unanimous. Thank you very much.
(END)

This Page
Intentionally
Left Blank

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: 11/29/2023
ITEM NO: 1
DATE: November 22, 2023
TO: Planning Commission
FROM: Joel Paulson, Community Development Director
SUBJECT: Consider and Make a Recommendation to the Town Council on the Draft Revised 2023-2031 Housing Element. Location: Town-Wide. General Plan Amendment Application GP-22-003.

RECOMMENDATION:

Consider the Draft Revised 2023-2031 Housing Element (November 2023) and adopt a resolution recommending adoption by the Town Council.

EXECUTIVE SUMMARY:

The Town of Los Gatos has prepared a revised 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 Revised 2023-2031 Housing Element is structured for further 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 Revised 2023-2031 Housing Element (November 2023) is available on the Town’s Housing Element website:
www.losgatosca.govHousingElement.

BACKGROUND:

On October 2, 2023, after the seven-day review period, the Town submitted the Draft Revised Housing Element (September 2023), in response to the May 30, 2023, California Department of Housing and Community Development (HCD) findings/comment letter to HCD for review. The ATTACHMENT 7

PAGE 2 OF 6
SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: November 22, 2023
BACKGROUND:
documents submitted to HCD can be viewed on the Housing Element update website at:
www.losgatosca.gov/HousingElement.

On November 7, 2023, staff and the consultant met with the Town’s HCD reviewer, received preliminary feedback, and was subsequently provided with a Draft Preliminary Review Matrix on the Draft Revised Housing Element submitted to HCD on October 2, 2023.

On November 15, 2023, the Planning Commission reviewed HCD’s preliminary comments and staff’s responses, asked questions of staff and the Housing Element consultant, received verbal public comment, and continued the item to a date certain of November 29, 2023, for a special meeting to continue the public hearing for any additional public comment, deliberation, and a recommendation.

On November 16, 2023, the Draft Revised Housing Element (November 2023) with modifications in response to HCD’s Draft Preliminary Review Matrix received by the Town on November 7, 2023, was made available to the public for a seven-day review as required by Assembly Bill 215. Written comments on the document can be submitted through November 27, 2023, by 4:00 p.m. HCD requires that a track change copy and a clean copy of the document be available for viewing during the seven-day review period (available at:
www.losgatosca.gov/housingelement). In addition, an email was sent to all individuals and organizations that previously requested notice relating to the Town’s Housing Element Update.

The primary purpose of this agenda item is to provide a written recommendation to Town Council on whether to adopt the Draft Revised Housing Element (November 2023) with modifications in response to HCD’s Draft Preliminary Review Matrix received by the Town on November 7, 2023 (Exhibit 2). A draft resolution will be provided in a future Addendum Report for the November 29, 2023, Planning Commission meeting.

DISCUSSION:

A comprehensive list of the modifications made to the Draft Revised Housing Element, based on the HCD Draft Preliminary Review Matrix provided on November 7, 2023, is provided is in Exhibit 3. The following sections illustrate the more substantial modifications made to the document.

A. Affirmatively Furthering Fair Housing (AFFH)
Appendix A of the Draft Revised Housing Element (November 2023) was modified in yellow highlight to include additional maps and analysis to analyze available data comparing the

PAGE 3 OF 6
SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: November 22, 2023
DISCUSSION (continued):

Town to the region on issues such as integration and segregation, disparities in access to opportunity, and disproportionate housing needs.

B. Implementation Programs
The Implementation Programs in Section 10.6 of Chapter 10 of the Draft Revised Housing Element (November 2023) were modified in yellow highlight to reflect modified metrics, timelines, and suggested language as detailed in the HCD Draft Preliminary Review Matrix (Exhibit 3).

C. Sites Inventory and Regional Housing Needs Allocation (RHNA) Credits/Surplus The following modifications have been made in yellow highlight to the Sites Inventory and Appendix D of the Draft Revised Housing Element (November 2023):

1. The removal of site A-2 (101 South Santa Cruz Avenue). Site A-2 had a minimum capacity of 16 units that were allocated towards fulfilling the above moderate-income category of the Town’s RHNA. On November 7, 2023, the Town Council introduced an ordinance to amend the Chapter 29 of the Town Code to replace the Affordable Housing Overlay Zone with the Housing Element Overlay Zone (HEOZ), as detailed in Implementation Program AQ of the Draft Revised Housing Element (November 2023).

At the same Town Council meeting, the Town Council continued the item of applying the HEOZ to the property located at 101 South Santa Cruz Avenue (site A-2) to a time in which there was more certainty that it will be needed in order to certify the Housing Element. In order to receive certification of the Housing Element from HCD in an expeditious manner, staff has removed site A-2 from the Sites Inventory, as HCD will not certify a Housing Element until all rezonings have been completed.

2. The removal of 96 Senate Bill 9 (SB 9) units that were allocated towards fulfilling the above moderate-income category of the Town’s RHNA. Due to the request by HCD in the Draft Preliminary Review Matrix to provide a specific sites analysis for SB 9, as well as a nonvacant sites analysis demonstrating the likelihood of redevelopment, and in order to receive certification of the Housing Element from HCD in an expeditious manner, staff has removed the projection of 96 SB 9 units from the Housing Element.

Opportunities for the Town to monitor, promote, and incentivize SB 9 projects are still made available through Implementation Programs AO and AV of the Draft Revised Housing Element (November 2023). Additionally, housing units created through SB 9 are still able to be credited towards fulfilling the Town’s RHNA.

3. The RHNA planning period for the Association of Bay Area Governments (ABAG) region started on June 30, 2022. Housing units that were finaled, permitted, or approved after this date, or were under construction as of June 30, 2022, up to January 31, 2023, can

PAGE 4 OF 6
SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: November 22, 2023
DISCUSSION (continued):
be credited toward the RHNA. The number of units that can be credited towards the RHNA was reduced from 250 to 25, as staff confirmed that 225 of the 250 units had previously been reported to the California Department of Finance.

4. The Sites Inventory has been revised to reflect the adjusted RHNA credits for housing units that were finaled, permitted, or approved after this date, or were under construction as of June 30, 2022; Accessory Dwelling Units (ADU) projections; and Pipeline Projects that amount to 416 units. The remaining RHNA that needs to be accommodated by the Sites Inventory is 1,577 units, as shown in yellow highlight in Table 10-3 and Table D-2 of the Draft Revised Housing Element (November 2023) and provided below. The Sites Inventory now accommodates a net capacity of approximately 1,955 units, a surplus of approximately 24 percent above the remaining RHNA of 1,577 units, which would equal a capacity of approximately 378 additional units. These sites, in addition to ADU Projections, and Pipeline Projects have a total, net capacity of 2,371 units.

Table 10-3 RHNA Credits and Sites Strategies
RHNA Credit
Affordability Credit
Very LowIncomeLowIncomeModerateIncome
AboveModerate
Income
Total
Entitled/Permitted/Under
Construction/Finaled (June 30, 2022, to
January 31, 2023)
- Single-Family Units and Housing Projects 0 0 0 2 2
- ADUs 0 3 11 9 23
Pipeline Projects 0 1 0 190 191
Projected ADUs (1/1/2023-1/31/2031) 60 60 60 20 200
Total 60 64 71 221 416
RHNA 537 310 320 826 1,993
Remaining RHNA 477 246 249 605 1,577
Housing Element Overlay Zone (HEOZ) Sites 634 357 340 624 1,955 Owner Interest/Conceptual Development
Plans 480 283 264 304 1,331
Additional Sites 154 74 76 320 624
Surplus above Remaining RHNA 157 111 91 19 378
% Surplus 33% 45% 37% 3% 24%
Source: Town of Los Gatos 6th Cycle 2023-2031 Housing Element (November 2023)

PAGE 5 OF 6
SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: November 22, 2023
DISCUSSION (continued):

Next Steps
As required by Assembly Bill 215, the Draft Revised Housing Element (November 2023) has been made available to the public for a seven-day review period prior to the interim resubmittal to HCD. The seven-day public review period will run from November 17, 2023, until 4:00 p.m. on November 27, 2023. The Town expects to receive its comment letter from HCD on the Draft Revised Housing Element (November 2023) by December 1, 2023.

The Planning Commission’s recommendation on the adoption of the Draft Revised Housing Element is tentatively scheduled for consideration by the Town Council on December 19, 2023.

Should the Town Council adopt the Draft Revised Housing Element, 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 the Draft Revised Housing Element to HCD.

Based on HCD’s review, to be completed by December 1, 2023, it is possible that additional revisions may be needed before HCD would certify the Housing Element. This means that additional Planning Commission and Town Council hearings for adoption of a revised Housing Element may need to be conducted.

ENVIRONMENTAL ASSESSMENT:

An Environmental Analysis was prepared for the Housing Element update. All potentially significant effects have been analyzed adequately in the Town of Los Gatos 2040 General Plan Environmental Impact Report (EIR), pursuant to applicable standards including CEQA Guidelines Section 15168(c)2, because the Housing Element update is consistent with the growth projections evaluated in the General Plan EIR.

PUBLIC COMMENTS:

Public comments received between 11:01 a.m., Wednesday, November 15, 2023, and 11:00 a.m., Wednesday, November 22, 2023, are included as Exhibit 4.

PAGE 6 OF 6
SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: November 22, 2023
CONCLUSION:

A. Recommendation
Staff recommends that the Planning Commission:

1. Receive and consider public comments;

2. Consider the Draft Revised Housing Element (November 2023) (Exhibit 2), and the Environmental Analysis (Exhibit 1); and

3. Adopt a resolution forwarding a recommendation to the Town Council to adopt the Draft Revised Housing Element (November 2023) (Exhibit 2).

EXHIBITS:

Previously received (available online at: www.losgatosca.gov/HousingElement):

1. Environmental Analysis

2. Draft Revised 2023-2031 Housing Element (November 2023)

3. Response Memorandum to the HCD Draft Preliminary Review Matrix Received with this Staff Report:

4. Public Comment received between 11:01 a.m., Wednesday, November 15, 2023, and 11:00 a.m., Wednesday, November 22, 2023

Los Gatos Community Alliance
Facts Matter; Transparency Matters; Honesty Matters
www.lgca.town
November 19, 2023
Laurel Prevetti, Town Manager
Town of Los Gatos
110 E Main St
Los Gatos, CA 94050
Via email: [email protected]
Dear Ms. Prevetti:

The Los Gatos Community Alliance (LGCA) has been made aware that on November 16, 2023, the Town submitted a newly revised draft 2023-2031 Housing Element (dated November 2023) to the California Department of Housing and Community Development (HCD) for review. This latest revision incorporates substantive changes from the prior draft. This revised draft Housing Element was not reviewed or discussed by the Town’s Housing Element Advisory Board (HEAB) or the Town’s Planning Commission prior to being submitted to HCD. It also was not made available to the public prior to submission to HCD.

On November 15, the night before the Town submitted the revised Housing Element draft, the Planning Commission held a special meeting for which the only agenda item was, “Consider and Make a Recommendation to the Town Council on the Draft Revised 2023-2031 Housing Element.” Because the newly revised November draft was not on the agenda and was unknown to the public at the time, the Planning Commission and the public were denied any opportunity to review and comment on the draft that was submitted to HCD the very next day.

We remind you of California Government Code Section 65585(b)(3) (annotated copy attached) which explicitly states, “For any subsequent draft revision, the local government shall post the draft revision on its internet website and shall email a link to the draft revision to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting the draft revision to the department” (emphasis added).

The required communications were not made 7 days prior to submitting the newly revised draft to HCD, in direct contravention of the aforementioned Code section. Instead, the Town posted the November 2023 Housing Element revision on its website on November 16, 2023, the same day it was submitted to HCD. Also on that day, the Town sent email links to individuals who had requested notices.

HCD has stated on every Housing Element comment letter received by the Town, “public participation in the development, adoption and implementation of the housing element is essential to effective housing planning.” Furthermore, every HCD comment letter reminded the Town of the obligatory 7-day public comment period. We direct your attention to appendix E “Public Participation” on page 11 of HCD’s comment letter of January 12, 2023 (annotated copy attached), for an example of HCD’s explicit guidance on this topic.

EXHIBIT 4

Laurel Prevetti November 19, 2023 Page 2
Los Gatos Community Alliance
Facts Matter; Transparency Matters; Honesty Matters
www.lgca.town
In addition, on its website at https://www.hcd.ca.gov/planning-and-communitydevelopment/housing-elements, HCD imposes the following requirement for revised submittals: “in the element or in a cover letter, please indicate compliance with AB 215 requirements to post the draft revision 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 the draft revision to HCD.

Please note, any revisions received during the course of HCD's review are also subject to the seven-day posting requirement prior to submittal to HCD.” We therefore request the Town to:

1. provide us via return email with a copy of the cover letter or other materials submitted to HCD that meet the above-referenced obligation to indicate compliance with the AB 215 notice requirements

2. advise HCD of the Town’s failure to observe Government Code Section 65585(b)(3) and inform HCD the Town is rescinding its submission of the draft Housing Element in order properly to provide the required 7-day public review period and consider public comment prior to submitting a revised draft Housing Element.

Lastly, this is to inform you that the LGCA plans to submit comments on the November 2023 draft of the housing element once it is made available to the public with the mandated 7 day public comment period.

Thank you for your attention to this very important matter.

Rick Van Hoesen
Jak Van Nada
Los Gatos Community Alliance
Attachments
HCD comment letter to the Town of Los Gatos dtd Jan. 12, 2023 (annotated) Cal. Gov. Code § 65585 (annotated)
Copies via email to
Wendy Wood, Town Clerk
Los Gatos Town Council members:

Maria Ristow, Mayor
Mary Badame, Vice Mayor
Matthew Hudes
Rob Moore
Rob Rennie
Joel Paulson, LG Planning Commission
Gabrielle Whelan, Los Gatos Town Attorney
California Department of Housing and
Community Development (HCD)
Paul McDougall
Jose Jaurequi
Los Gatos Community Alliance:

Phil Koen

Cal. Gov. Code § 65585
Section 65585 - Draft element or draft amendment submitted to department (a) In the preparation of its housing element, each city and county shall consider the guidelines adopted by the department pursuant to Section 50459 of the Health and Safety Code. Those guidelines shall be advisory to each city or county in the preparation of its housing element.
(b)
(1) At least 90 days prior to adoption of a revision of its housing element pursuant to subdivision (e) of Section 65588, or at least 60 days prior to the adoption of a subsequent amendment to this element, the planning agency shall submit a draft element revision or draft amendment to the department. The local government of the planning agency shall make the first draft revision of a housing element available for public comment for at least 30 days and, if any comments are received, the local government shall take at least 10 business days after the 30-day public comment period to consider and incorporate public comments into the draft revision prior to submitting it to the department. For any subsequent draft revision, the local government shall post the draft revision on its internet website and shall email a link to the draft revision to all individuals and organizations that have previously requested notices relating to the local government's housing element at least seven days before submitting the draft revision to the department. (2) The planning agency staff shall collect and compile the public comments regarding the housing element received by the city, county, or city and county, and provide these comments to each member of the legislative body before it adopts the housing element. (3) The department shall review the draft and report its written findings to the planning agency within 90 days of its receipt of the first draft submittal for each housing element revision pursuant to subdivision (e) of Section 65588 or within 60 days of its receipt of a subsequent draft amendment or an adopted revision or adopted amendment to an element.

The department shall not review the first draft submitted for each housing element revision pursuant to subdivision (e) of Section 65588 until the local government has made the draft available for public comment for at least 30 days and, if comments were received, has taken at least 10 business days to consider and incorporate public comments pursuant to paragraph (1).
(c) In the preparation of its findings, the department may consult with any public agency, group, or person. The department shall receive and consider any written comments from any public agency, group, or person regarding the draft or adopted element or amendment under review.
(d) In its written findings, the department shall determine whether the draft element or draft amendment substantially complies with this article.
(e) Prior to the adoption of its draft element or draft amendment, the legislative body shall consider the findings made by the department. If the department's findings are not available within the time limits set by this section, the legislative body may act without them.

(f) If the department finds that the draft element or draft amendment does not substantially comply with this article, the legislative body shall take one of the following actions:
(1) Change the draft element or draft amendment to substantially comply with this article. (2) Adopt the draft element or draft amendment without changes. The legislative body shall include in its resolution of adoption written findings which explain the reasons the legislative body believes that the draft element or draft amendment substantially complies with this article despite the findings of the department. (g) Promptly following the adoption of its element or amendment, the planning agency shall submit a copy to the department.
(h) The department shall, within 90 days, review adopted housing elements or amendments and report its findings to the planning agency.
(i)
(1)
(A) The department shall review any action or failure to act by the city, county, or city and county that it determines is inconsistent with an adopted housing element or Section 65583, including any failure to implement any program actions included in the housing element pursuant to Section 65583. The department shall issue written findings to the city, county, or city and county as to whether the action or failure to act substantially complies with this article, and provide a reasonable time no longer than 30 days for the city, county, or city and county to respond to the findings before taking any other action authorized by this section, including the action authorized by subparagraph (B). (B) If the department finds that the action or failure to act by the city, county, or city and county does not substantially comply with this article, and if it has issued findings pursuant to this section that an amendment to the housing element substantially complies with this article, the department may revoke its findings until it determines that the city, county, or city and county has come into compliance with this article. (2) The department may consult with any local government, public agency, group, or person, and shall receive and consider any written comments from any public agency, group, or person, regarding the action or failure to act by the city, county, or city and county described in paragraph (1), in determining whether the housing element substantially complies with this article.
(j) The department shall notify the city, county, or city and county and may notify the office of the Attorney General that the city, county, or city and county is in violation of state law if the department finds that the housing element or an amendment to this element, or any action or failure to act described in subdivision (i), does not substantially comply with this article or that any local government has taken an action in violation of the following:
(1) Housing Accountability Act (Section 65589.5).
(2) Section 65863.
(3) Chapter 4.3 (commencing with Section 65915).
2 Section 65585 ... Cal. Gov. Code § 65585

(4) Section 65008.
(5) Housing Crisis Act of 2019 (Chapter 654, Statutes of 2019, Sections 65941.1, 65943, and 66300).
(6) Section 8899.50.
(7) Section 65913.4.
(8) Article 11 (commencing with Section 65650).
(9) Article 12 (commencing with Section 65660).
(10) Section 65913.11.
(11) Section 65400.
(12) Section 65863.2.
(13) Chapter 4.1 (commencing with Section 65912.100).
(k) Commencing July 1, 2019, prior to the Attorney General bringing any suit for a violation of the provisions identified in subdivision (j) related to housing element compliance and seeking remedies available pursuant to this subdivision, the department shall offer the jurisdiction the opportunity for two meetings in person or via telephone to discuss the violation, and shall provide the jurisdiction written findings regarding the violation. This paragraph does not affect any action filed prior to the effective date of this section. The requirements set forth in this subdivision do not apply to any suits brought for a violation or violations of paragraphs (1) and (3) to (9), inclusive, of subdivision (j). (l) In any action or special proceeding brought by the Attorney General relating to housing element compliance pursuant to a notice or referral under subdivision (j), the Attorney General may request, upon a finding of the court that the housing element does not substantially comply with the requirements of this article pursuant to this section, that the court issue an order or judgment directing the jurisdiction to bring its housing element into substantial compliance with the requirements of this article. The court shall retain jurisdiction to ensure that its order or judgment is carried out. If a court determines that the housing element of the jurisdiction substantially complies with this article, it shall have the same force and effect, for purposes of eligibility for any financial assistance that requires a housing element in substantial compliance and for purposes of any incentives provided under Section 65589.9, as a determination by the department that the housing element substantially complies with this article.
(1) If the jurisdiction has not complied with the order or judgment after 12 months, the court shall conduct a status conference. Following the status conference, upon a determination that the jurisdiction failed to comply with the order or judgment compelling substantial compliance with the requirements of this article, the court shall impose fines on the jurisdiction, which shall be deposited into the Building Homes and Jobs Trust Fund. Any fine levied pursuant to this paragraph shall be in a minimum amount of ten thousand dollars ($10,000) per month, but shall not exceed one hundred thousand dollars 3 Section 65585 ... Cal. Gov. Code § 65585

($100,000) per month, except as provided in paragraphs (2) and (3). In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdiction's failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.
(2) If the jurisdiction has not complied with the order or judgment after three months following the imposition of fees described in paragraph (1), the court shall conduct a status conference. Following the status conference, if the court finds that the fees imposed pursuant to paragraph (1) are insufficient to bring the jurisdiction into compliance with the order or judgment, the court may multiply the fine determined pursuant to paragraph (1) by a factor of three. In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdiction's failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution. (3) If the jurisdiction has not complied with the order or judgment six months following the imposition of fees described in paragraph (1), the court shall conduct a status conference. Upon a determination that the jurisdiction failed to comply with the order or judgment, the court may impose the following:
(A) If the court finds that the fees imposed pursuant to paragraphs (1) and (2) are insufficient to bring the jurisdiction into compliance with the order or judgment, the court may multiply the fine determined pursuant to paragraph (1) by a factor of six. In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdiction's failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.
(B) The court may order remedies available pursuant to Section 564 of the Code of Civil Procedure, under which the agent of the court may take all governmental actions necessary to bring the jurisdiction's housing element into substantial compliance pursuant to this article in order to remedy identified deficiencies. The court shall determine whether the housing element of the jurisdiction substantially complies with this article and, once the court makes that determination, it shall have the same force and effect, for all purposes, as the department's determination that the housing element substantially complies with this article. An agent appointed pursuant to this paragraph shall have expertise in planning in California.
(4) This subdivision does not limit a court's discretion to apply any and all remedies in an action or special proceeding for a violation of any law identified in subdivision (j). (m) In determining the application of the remedies available under subdivision (l), the court shall consider whether there are any mitigating circumstances delaying the jurisdiction from 4 Section 65585 ... Cal. Gov. Code § 65585

coming into compliance with state housing law. The court may consider whether a city, county, or city and county is making a good faith effort to come into substantial compliance or is facing substantial undue hardships.
(n) Nothing in this section shall limit the authority of the office of the Attorney General to bring a suit to enforce state law in an independent capacity. The office of the Attorney General may seek all remedies available under law including those set forth in this section. (o) Notwithstanding Sections 11040 and 11042, if the Attorney General declines to represent the department in any action or special proceeding brought pursuant to a notice or referral under subdivision (j) the department may appoint or contract with other counsel for purposes of representing the department in the action or special proceeding. (p) Notwithstanding any other provision of law, the statute of limitations set forth in subdivision (a) of Section 338 of the Code of Civil Procedure shall apply to any action or special proceeding brought by the Office of the Attorney General or pursuant to a notice or referral under subdivision (j), or by the department pursuant to subdivision (o).

Ca. Gov. Code § 65585
Amended by Stats 2022 ch 657 (AB 2653),s 2.3, eff. 1/1/2023.

Amended by Stats 2022 ch 647 (AB 2011),s 2, eff. 1/1/2023.

Amended by Stats 2022 ch 459 (AB 2097),s 1, eff. 1/1/2023.

Amended by Stats 2021 ch 363 (SB 478),s 2.5, eff. 1/1/2022.

Amended by Stats 2021 ch 342 (AB 215),s 1, eff. 1/1/2022.

Amended by Stats 2020 ch 370 (SB 1371),s 174, eff. 1/1/2021.

Amended by Stats 2019 ch 668 (SB 113),s 3, eff. 10/9/2019.

Amended by Stats 2019 ch 159 (AB 101),s 4, eff. 7/31/2019.

Amended by Stats 2017 ch 370 (AB 72),s 1, eff. 1/1/2018.

Amended by Stats 2016 ch 271 (AB 2685),s 1, eff. 1/1/2017.

Amended by Stats 2000 ch 471 (AB 2008), s 2, eff. 1/1/2001. 5 Section 65585 ... Cal. Gov. Code § 65585

1 November 14, 2023
Dear Members of the Planning Commission,
The Los Gatos Community Alliance is writing to you as a group of concerned residents regarding the draft Revised 2023-2031 Housing Element. We have specific comments regarding Table 10-3 which is found in the Staff report for tonight’s meeting.
1 – Single Family and Housing units entitled – June 30, 2022 to January 31, 2023 On D-64 of the Housing Element it is stated that “units that are made available during the RHNA projection period (June 30, 2022 through January 31, 2031) can be credited toward the RHNA”. Table 10- 3 reflects 227 housing units that the Town claims were “finaled, permitted, or approved after June 30, 2022 or were under construction as of June 30, 2022”. Unfortunately, this does not conform to the instructions in the comment letter HCD issued to ABAG on January 12, 2022 ( see attachment 2) nor the HCD comment letter issued to SCAG dated May 21, 2012 (see attachment 3).

According to both HCD comment letters, “local governments may take RHNA credit for “new” units approved, permitted, or produced to accommodate “new” housing projected since the start date of the “new” RHNA projection period.” Furthermore, the comment letters state, “units approved, permitted, or produced before the “new” RHNA projection period relate to the previous housing need and can only be credited and reported for the previous RHNA and HE update cycle.” For Los Gatos, the “new” RHNA projection period started June 30, 2022.

Of the 227 units claimed as a credit toward the 6th cycle RHNA, 225 units were permitted prior to the start date of the projection period of June 30, 2022. This includes the 49 below market rate units on the North 40 Phase 1 parcel (APN 424-07-100). In addition, all 225 units have been included in the 5th cycle results (refer to page E-12) and reported in either the 2020, 2021 or 2022 Annual Progress Reports to HCD. Based on this, all 225 units need to be excluded from Table 10-3 and deducted from the total credits.

To further remove any doubt about how units “approved, permitted or produced” since the start of the 6 th cycle RHNA should be counted, we have attached pages from the adopted and certified 6th cycle Housing Element for the City of Long Beach (see attachment 4). It is clearly disclosed in Long Beach’s Housing Element that “housing developments that have been proposed or have received entitlements but are not expected to be issued building permits until after July 1, 2021 (this is the start date for SCAG’s 6th cycle projection period) can be credited toward the 2021 – 2029 RHNA”. We find it hard to imagine that HCD would allow Los Gatos to double count units in both the 5th and 6th cycle while not allowing other jurisdictions in the State to also do so.

Removing the double counted 225 units reduces the surplus to 490 units from the 715 units shown on Table 10-3 and will provide a buffer of 39% above the RHNA 1,993 units. Additionally, the surplus of 206 units for very low-income category will be reduced to 157 units or 29% of RHNA 537 very low-income units.

2 2. Projected ADU Affordability
On D-60 of the Housing Element it is disclosed that the income distribution for ADU’s is 30% very low, 30% low, 30% moderate and 10% above moderate income. This distribution was based on “ABAG’s preapproved ADU Affordability Survey.” We have attached (see attachment 5) the referenced survey which in fact was released as a “draft” survey prepared by ABAG dated September 8, 2021. While the draft report was reviewed by HCD, HCD did not formally accept it and did not raise objections to the conclusions. HCD believed the conclusions were generally accurate and added that jurisdictions should ensure the information reflects local conditions. To that end, HCD stated jurisdictions should provide opportunity for stakeholders to comment on any assumptions, including affordability assumptions based on the draft report. ABAG did not expect to receive any additional guidance from HCD.

The survey does include a recommendation for ADU’s income distribution as discussed in the Housing Element. However, the survey also recommends a more conservative distribution for jurisdictions with fair housing concerns, which Los Gatos clearly has. This distribution is 5% very low, 30% low, 50% moderate and 15% above. This distribution more accurately reflects open market rentals, excluding units made available to family and friends and has been adopted by other ABAG jurisdictions. This distribution is further validated by data in the survey which shows the following distribution of ADU market rate units on the Peninsula – 6% very low, 31% low, 48% moderate and 15% above.

Lastly, the Town’s actual experience for ADUs permitted between June 30, 2022 and January 30, 2023 shows the following income distribution – 0% very low, 12% low, 48% moderate and 40% above. Based on this we believe a more reasonable income distribution for ADUs would be 5% very low, 30% low, 50% moderate and 15% above, which was the recommendation for jurisdictions with fair housing concerns.

Furthermore, we find it hard to believe HCD will approve the distribution in Table 10-3 given the fact that there is no evidence in the record to support the distribution assumption and it was changed from prior submissions of Table 10-3 made to HCD.

Adopting the distribution recommended for jurisdictions with AFFH concerns, would result in 50 units deducted from the very low category and 40 units added to the moderate category and 10 units added to the above category. Making this adjustment would further reduce the 206 surpluses for very lowincome category to 107 units (taking into consideration the 49 units discussed above) which represents only a 20% buffer above the RHNA 537 very low-income units.

3. Site B-1 adjustment to reflect SB 330 application
On page D-21 there is a description of site B-1, the Los Gatos Lodge. The site inventory programmed this

8.81-acre site for 262 units at a planned development density of 30 DU per acre. The income distribution of these units is 86 units very low, 86 units low, 62 units moderate and 28 units above.

The property owner has filed a preliminary SB 330 application which vests the development rights of the parcel, and a final application is expected to be received by January 2, 2024. The SB 330 application calls for the development of 158 units at a development density of 17.9 DU per acre. It should be pointed out this development density is materially below the 30 DU minimum density programmed by the HEOZ zoning. The Housing Element does not discuss the difference in development densities and raises questions regarding Program AQ – Zoning Code Amendments since there is no mention as to a minimum

3 allowable development density and appears to be inconsistent with Table C-3 - Proposed HEOZ Densities by underlying Land Use and Zoning Designation.

Based on the SB 330 application, it appears that a reasonable development assumption should be 0 units very low, 32 units low, 0 units moderate and 126 above for a total of 158 units. This would result in 86 units being deducted from very low units, 54 units being deducted from low units, 62 units being deducted from moderate, and 98 units being added to above.

4. Site D-1 adjustment to reflect SB 330 application
On page D-35 there is a description of site D-1, North 40 Phase II. The site inventory programmed this

15.6-acre site for 452 net units at a planned development density of approximately 30 DU per acre. The income distribution of these units is 184 units very low, 89 units low, 92 units moderate and 87 units above.

The property owner has filed a final SB 330 application which vests the development rights of the parcel.

The SB 330 final application calls for the development of 451 units at a development density of 28.6 DU per acre. It should be pointed out this development density is below the 30 DU minimum density programmed by the HEOZ zoning. The Housing Element does not address the difference in development densities and raises a question regarding Program D – Additional Housing Capacity for the North 40 Specific Plan, Program AQ – Zoning Code Amendment and appears to be inconsistent with Table C-3 - Proposed HEOZ Densities by underlying Land Use and Zoning Designation.

Based on the SB 330 application, it appears that a reasonable development assumption should be 0 units very low, 91 units low, 1 unit moderate and 359 above for a total of 451 units. This would result in 184 units being deducted from very low units, 2 units being added to low, 91 units being deducted from moderate, and 272 units being added to above.

5. Site I-1 adjustment to reflect SB 330 application
On page D-59 there is a description of site I-1, Alberto Way. The site inventory programmed this 2.15- acre site for 60 units at a planned development density of approximately 27.9 DU per acre. The income distribution of these units is 0 units very low, 4 units low, 4 units moderate and 52 units above. The site inventory reflects the preliminary SB 330 application development plan. This is inconsistent with how the site inventory planned site B-1, which ignored the SB 330 preliminary application.

The property owner has filed a final SB 330 application which vests the development rights of the parcel.

The SB 330 application calls for the development of 52 units at a development density of 24.1 DU per acre. It should be pointed out this development density is below the 30 DU minimum density programmed by the HEOZ zoning. The Housing Element does not address the difference in development densities and appears to be inconsistent with Table C-3 - Proposed HEOZ Densities by underlying Land Use and Zoning Designation.

Based on the SB 330 application, it appears that a reasonable development assumption should be 0 units very low, 8 units low, 0 unit moderate and 44 above for a total of 52 units. This would result in 4 units being added to low, 4 units being deducted from moderate, and 8 units being deducted from above. We made this adjustment to Table 10-3.

4 Summary and Conclusion
Summing all the adjustments noted above, materially reduces the total credits and HEOZ sites shown in Table 10-3. On an adjusted basis it is reasonably expected that there will be 2,370 units developed during the 6th cycle which will provide a 19% buffer above the RHNA 1,993. In addition, reflecting the above adjustments the income distribution will be 374 very low units, 373 low units, 295 moderate units and 1,328 above units (see attachment 1).

Given this level of development, the Town will fail to meet the 6th cycle RHNA of 537 very low units and 320 moderate units. This result clearly does not meet the desired outcome of Program AS, which was to provide adequate sites for housing, RHNA rezoning and lower income households on nonvacant and vacant sites, while providing a 25% buffer for all income categories. Only the above moderate-income group meets this program’s goal with a 61% buffer.

The unmistakable conclusion is the Town must identify more parcels to be included in the site inventory and rezoned as part of the HEOZ to meet the 6th cycle RHNA by income category. If this is not done, it is unlikely the HCD will certify this fourth submission.

Thank you for allowing us to provide our comments. At the end of the day, we all want the same outcome – a Housing Element that fully complies with State Housing Law and is certified by HCD as quickly as possible.

Los Gatos Community Alliance

Part B
Adjusted Table 10-3 RHNA Credits and Site Strategies
Total Credits and HEOZ sites (carry down from Part A) 743 421 413 1,131 2,708 Less adjustments:
1) Single Family and Housing Projects units permited and counted in RHNA 5th cycle (49) 0 (1) (175) (225) 2) Projected ADU affordability adjustement to reflect market conditions and AFFH Concerns (50) 0 40 10 0 3) Site B-1 to conform affordability levels to filed SB 330 application (86) (54) (62) 98 (104) 4) Site D-1 to conform affordability levels to filed SB 330 final application (184) 2 (91) 272 (1) 5) Site I-1 to conform affordability levels to filed SB 330 final application 0 4 (4) (8) (8) >> Total adjustments (369) (48) (118) 197 (338)
Adjusted Total Credits and HEOZ sites 374 373 295 1,328 2,370 RHNA 537 310 320 826 1,993
Surplus/(Deficit) over RHNA (163) 63 (25) 502 377
% Surplus/(Deficit) (30.4) 20.3 (7.8) 60.8 18.9

STATE OF CAl !FORNIA -B! JS!NFSS TRANSpORTATION AND HOI !SING AGENCY

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
1800 Third Street, Suite 430
P. 0. Box 952053
Sacramento, CA 94252-2053
(916) 323-3177/ FAX (916) 327-2643
www.hcd.ca.gov
May 21, 2012
Ms. Huasha Liu
Planning Director, Land Use & Environmental Planning Department SCAG
818 West ih Street
Los Angeles, CA 90017
RE: Clarification of Housing Element (HE) Planning Period and Due Date, Regional Housing Need Assessment (RHNA) Projection Period, and Eligibility of Jurisdictions to Take RHNA Credit
Dear Ms. Liu:

The Department is responding to your recent request, on behalf of some members of the Southern California Association of Governments (SCAG), for the Department (HCD) to address (a) specific statutory changes regarding the HE "planning" period and due date and the RHNA "projection" period applicable to SCAG jurisdictions for the 5th RHNA and HE update cycle, and (b) jurisdictions' eligibility to take RHNA credit for housing units approved, permitted, or produced.

The brief answers to your questions are that SCAG's RHNA "projection" period is from January 2014 through October 2021, whereas the HE due date is October 15, 2013 for the "planning" period from October 2013 through October 2021. The anomaly of the HE due date for SCAG jurisdictions (October 2013) preceding the RHNA start date (January 2014) by three (3) months is due to (a) legislative changes and statutory definitions described below and (b) the date that SCAG adopted its Regional Transportation Plan. Statutory changes applicable for the 5th and subsequent HE update cycles specify the HE due date to be 18 months from the RTP adoption date. The October 2013 HE due date for SCAG jurisdictions follows 18 months from SCAG's April 5, 2012 RTP adoption date.

Regarding jurisdictions taking RHNA credit, nothing has changed. The jurisdiction authorized to permit a particular housing development can take RHNA credit for "new" units approved, permitted, or produced to accommodate "new" housing need projected since the start date of the "new" RHNA projection period. Units approved, permitted, or produced before the start of the "new" RHNA projection period relate to the previous housing need and can only be credited and reported for the previous RHNA and HE update cycle.

Ms. Huasha Liu

Legislative Changes to RHNA Projection Period and HE Planning Period and Due Date Senate Bill 375 (Steinberg, Chapter 728, 2008 Statutes and Senate Bill 575 (Steinberg, Chapter 354, 2009 Statutes) added Government Code (GC) Sections defining HE planning period and due date and RHNA projection period per below italicized text:

RHNA Projection Period
The new projection period shall begin on the date of December 31 or June 30 that most closely precedes the end of the previous projection period.” [GC 65588(e)(6)] “Projection Period” shall be the time period for which the regional housing need is calculated. [GC 65588(f)(2)]
Note: HCD uses January 1 or July 1 dates for RHNA determination start date purposes as these are the effective dates used by Department of Finance (DOF) in updating DOF housing estimates and population projections. Also, once HCD has determined the RHNA, there is no statutory authority to make any revision to the RHNA projection period or RHNA determination.

HE Planning Period and Due Date
“Planning Period” shall be the time period between the due date for one housing element and the due date for the next housing element. [GC 65588(f)(1)] For purposes of determining the existing and projected need for housing within a region pursuant to Sections 65584 to 65584.08, inclusive, the date of the next scheduled revision of the housing element shall be deemed to be the estimated adoption date of the regional transportation plan update described in the notice provided to the Department of Transportation plus 18 months. [GC 65588(e)(5)] Note: For HE due dates falling before and after the 15th day of a month, HCD rounds “up” the HE due date to fall on either the 15th day or last day of a month.

Also, while a change in the “actual” adoption date of the RTP from the “estimated” adoption date of the RTP (after HCD has determined the RHNA and identified the HE due date) can subsequently cause a change to the HE due date and HE “planning” period, it would not change the RHNA determination or “projection” period.

Ms. Huasha Liu

Thank you for the opportunity to address questions raised by SCAG's membership. If SCAG or its members have questions, please contact Anda Draghici, Housing Policy Specialist, by email ([email protected]) or telephone (916.327 -2640).

Sincerely,
Acting Deputy
~:!Director ~

Appendix
“This plan needs to address homelessness,
walkability, public transit, job opportunities
near new developments, and neighborhood
protections from the effects of gentrification.”
Long Beach Resident - Housing Element
Community Meeting
7

Appendix | Site Inventory C-3
CAppendix
February 2022
In 2020 SCAG prepared a Regional Accessory Dwelling
Unit Affordability Analysis based on a rent survey of ADUs across the region. This Affordability Analysis has been approved by HCD for use in the SCAG region to establish the potential affordability levels of ADUs expected to be constructed during the Housing Element planning period.

Long Beach belongs to the Los Angeles County II subregion in this study, which consists of ADUs with the following income/affordability distribution:
» Extremely Low Income: 15.0 percent
» Very Low Income: 8.5 percent
» Low Income: 44.6 percent
» Moderate Income: 2.1 percent
» Above Moderate Income: 29.8 percent
C.2.2 Entitled and Proposed Developments
Because the RHNA for this 2021-2029 Housing Element
begins on June 30, 2021, housing developments that
have been proposed or have received entitlements but
are not expected to be issued building permits until after July 1, 2021 can be credited toward the 2021-2029 RHNA.

Table C-1 lists the projects that have received approval or entitlement but are not yet permitted. In addition,
pipeline residential projects (proposed or upcoming) are also included. All of the approved/proposed/pipeline
projects will provide affordable housing units to lower income households, including those with special needs.

HOME and Housing Asset Funds are used as leverage
to improve the feasibility of these affordable housing
projects. Recent non-residential entitlement projects have also been reviewed against the inventory, and properties for which approvals entitling substantial improvements
that have been identified as having the potential to lessen the likelihood of development have been removed from
the inventory.

Table C-1: Approved, Entitled, and Proposed Developments Name Address Developer Units Very
Low Low Moderate Upper Target Population
Approved
Anaheim/
Walnut
1500 E.

Anaheim
Bridge
Housing 88 53 34 1 0 Family
Proposed/Pipeline Projects
Union
Apartments
1401 LB
Blvd
Skid Row
Housing 160 88 71 1 0 Family/
Long Beach
Senior
Housing
901-941 E.

PCH
Mercy
Housing 68 58 9 1 0 Senior
26 Point 2
Apartments
3590 E.

PCH
Excelerate
Housing
Group
77 61 15 1 0 Homeless
The Cove 2121 W.

William St.

Century
Affordable
Development
90 72 17 1 0 Homeless Vet
Armory Arts
Collective
854 E. 7th
Street
Daylight/
Gundry/
Howard
65 14 49 2 0 Family
Subtotal: 460 293 161 6 0
Total: 548 346 195 7 0

DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT
1 DRAFT Affordability of Accessory Dwelling Units
DRAFT Affordability of Accessory Dwelling Units A report and recommendations for RHNA 6 Prepared by the ABAG Housing Technical Assistance Team with Funding from REAP 9/8/2021

1. Overview
Accessory dwelling units (ADUs) are independent homes on a residential property with their own cooking and sanitation facilities and outside access. They can either be part of or attached to the primary dwelling or can be free standing/detached from the primary dwelling. Given their smaller size, typically between 400-1000 square feet (Source: Implementing the Backyard Revolution), they frequently offer a housing option that is more affordable by design. They also offer infill development opportunities in existing neighborhoods and a potential supplemental income source for homeowners. Similar are Junior ADUs (JADUs), which are even smaller living units enclosed within a single-family structure. JADUs have independent cooking facilities and outside access, however they may share sanitation facilities with the primary home. Both have become an increasingly popular housing type in recent years.

Recent California legislation has facilitated policy changes at the local level that encourage ADU development by streamlining the permitting process and shortening approval timelines. State law requires jurisdictions to allow at least one ADU and JADU per residential lot. These legislative and policy changes have increased ADU development across many California communities.

In 2020, the Center for Community Innovation at the
University of California at Berkeley (UC Berkeley)
undertook a comprehensive, statewide survey of ADUs,
resulting in a document entitled “Implementing the
Backyard Revolution: Perspectives of California’s ADU
Homeowners”, released on April 22, 2021. This memo
uses and extends that research, providing a foundation
that Bay Area jurisdictions may build upon as they
consider ADU affordability levels while developing their Housing Element sites inventory analyses. This report’s affordability research has been reviewed by the
California Department of Housing and Community
Development (HCD). While they have not formally
accepted it, in initial conversations they did not raise objections to the conclusions. Give HCD’s workload, it is unlikely we will receive additional guidance.

Figure 1: Affordability of ADUs

DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT
2 DRAFT Affordability of Accessory Dwelling Units
Figure 1 presents a summary of ADU affordability and Table 1 presents a recommendation for assumptions for Housing Elements. See the main body of the report for more information on methodology and assumptions.

We are recommending a conservative interpretation that assumes more moderate and above moderate ADUs than the research found. These assumptions represent a floor for most jurisdictions. If the market conditions in a particular jurisdiction warrant higher assumptions, then additional analysis can be provided to HCD for consideration.

Table 1: Affordability Recommendations for ADUs for Housing Elements Income Recommendation
Very Low Income (0-50% AMI) 30%
Low Income (51-80% AMI) 30%
Moderate Income (81-120% AMI) 30%
Above Moderate Income (120+ AMI) 10%
Notes: AMI = Area Median Income. See below for more information on assumptions.

Affirmatively Furthering Fair Housing Concerns
Although ADUs are often affordable, jurisdictions should be cautious about relying on them too heavily because of fair housing concerns. Many ADUs are affordable to lower and moderate income households because they are rented to family and friends of the homeowners. If minorities are underrepresented among homeowners, the families and potentially friends of the homeowners will be primarily white. Therefore, relying too heavily on ADUs could inadvertently exacerbate patterns of segregation and exclusion. Additionally, ADUs often do not serve large families, another important fair housing concern. Conversely, ADUs accomplish an important fair housing goal by adding new homes in parts of the city that are more likely to be areas of opportunity.

Jurisdictions with fair housing concerns may want to use more conservative assumptions based on open market rentals, excluding units made available to family and friends, as summarized below:

Table 1: Affordability Recommendations for ADUs for Jurisdictions with Fair Housing Concerns Income Recommendation
Very Low Income 5%
Low Income 30%
Moderate Income 50%
Above Moderate Income 15%
AN

DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT
3 DRAFT Affordability of Accessory Dwelling Units
Further Outreach and Data
Although HCD has reviewed this memo and believes the conclusions are generally accurate, it is still important for jurisdictions to ensure the information reflects local conditions. As part of ground truthing the conclusions, jurisdictions should provide opportunity for the stakeholders to comment on any assumptions, including affordability assumptions based on this memo.

2. UC Berkeley Survey
In the Fall and Winter of 2020, the University of California at Berkeley’s Center for Community Innovation, in collaboration with Baird + Driskell Community Planning, conducted a statewide survey of homeowners who had constructed ADUs in 2018 or 20191. Over 15,000 postcards were mailed to households directing them to an online survey. The overall response rate was approximately 5%, but Bay Area response rates were higher, up to 15% in some counties. In total, 387 ADU owners from the Bay Area completed they survey, with 245 of those units available on the long term rental market.

Key takeaways include:
x Just under 20% of Bay Area ADUs are made available at no cost to the tenant. x An additional 16% are rented to friends or family, presumably at a discounted rent, though the survey did not ask.
x Market-rate ADUs tend to rent at prices affordable to low and moderate income households in most markets.

3. Methodology
ABAG further analyzed the raw data from the UC Berkeley survey, because the authors of Implementing the Backyard Revolution did not present their results according to income categories (e.g. very low income, low income, etc.).

This ABAG summary uses the affordability calculator published by the California Department of Housing and Community Development (link) to define maximum income levels. HCD defines an affordable unit as one where a household pays 30 percent or less of their annual pre-tax income on housing.

The definition of affordable rents shifts with income category (Low, Very Low, etc.), household size/unit size, and geography. The income categories are as follows: Very Low = under 50% of Area Median Income (AMI), Low Income = 50-60% AMI, Moderate = 60-110% AMI.2 1 A summary is available here - http://www.aducalifornia.org/implementing-the-backyard-revolution/ 2 Please note, these assumptions are more conservative than is typically used, but match HCD’s recommendations.

DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT
4 DRAFT Affordability of Accessory Dwelling Units
Because some counties have different median incomes, the results are adjusted accordingly. 2020 AMIs were used because the survey was completed in 2020.

Additionally, ABAG made the following assumptions regarding persons per unit, which matched HCD’s recommendations:
x Studios 1 person
x 1 Bedrooms 2 people
x 2 Bedrooms 3 people
x 3 Bedrooms 4 people
See the following document for information on HCD’s assumptions. https://www.hcd.ca.gov/community-development/housing-element/docs/affordabilitycalculator-2020.xlsx

4. Summary of ADU Use
Table 2, below, shows the usage of ADUs. Because this report concerns affordability of available dwelling units, those not available for rent (short term rentals, home office and other) are excluded from further analysis.

Table 3. Usage of Accessory Dwelling Units
Region
Friend/
Family
Rental
Family -
No Rent
Long Term
Rental
(Open
Market)
Short
Term
Rental
Home
Office Other
East Bay 12% 19% 27% 2% 14% 27%
Peninsula 16% 18% 28% 4% 14% 20%
North Bay 13% 16% 33% 2% 8% 28%
Bay Total (9 Counties) 14% 18% 29% 3% 13% 24%
Statewide Total 16% 19% 30% 2% 12% 21%
Other includes homeowners who live in the ADU, needs repairs, empty, used as extra bedroom, etc. The response rate in San Francisco was too low for meaningful comparison so it is not presented separately, but is included in the Bay Area total. East Bay includes Alameda and Contra Costa Counties, Peninsula includes San Mateo and Santa Clara Counties, North Bay includes Marin, Sonoma and Napa Counties.

DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT
5 DRAFT Affordability of Accessory Dwelling Units

5. Affordability of ADUs
Rental Data
The analysis found that many ADUs are made available to family members, often at no rent.

The survey did not query the rent of family/friend rentals, only asking if rent was charged.

Of those ADUs available on the open market (not rented to family or friends), most charged rents between $1,200 and $2,200, as shown in in Figure 2.

Assigning ADUs to Income Categories
This report’s affordability analysis has two parts:

1. Market Rate ADUs: Those not rented to friends or family; and

2. Discount Rate ADUs: Those rented to family or friends for discounted or no rent Market Rate ADUs
Market rate ADUs were usually affordable to low or moderate income households, based on the methodology identified above. Depending on the part of the region, the ABAG analysis found:
x Very Low Income: 0-7% of market rate units were affordable to very low income x Low Income: 15-44% of market rate units were affordable to low income x Moderate income: 40-70% of market rate units were affordable to moderate income households.
x Above moderate: 9-15% of market rate units were affordable to above moderate income households.
10%
31%
25%
15%
8% 10%
0%
5%
10%
15%
20%
25%
30%
35%
$700 - $1200 $1201 - $1700 $1701 - $2200 $2201 - $2700 $2701 - $3200 $3200+ Figure 2. Average Monthly Rent

DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT
6 DRAFT Affordability of Accessory Dwelling Units
The data is summarized in the chart below.

Table 4. Affordability of Market Rate Units
Very Low Low Moderate Above Moderate
East Bay 0% 15% 70% 15%
Peninsula 6% 31% 48% 15%
North Bay 7% 44% 40% 9%
This chart only shows ADUs rented on the open market. The response rate in San Francisco was too low for meaningful comparison so it is excluded from this analysis.

Discount Rate ADUs
Based on previous HCD precedent, this analysis uses actual rents to determine affordability.

The occupant’s relationship to the owner is secondary, the relevant factor is the rent charged. (Please note the potential fair housing concerns that can arise from this approach). Specifically, this analysis assigns units made available to family or friends available at no rent as very low income. Additionally, this analysis assigns units rented to family or friends as low income3.

Combined Market and Affordable ADUs
Table 5, below, combines the information for discounted and market rate ADUs.

The response rate in San Francisco was too low for meaningful comparison so it is not presented separately, but is included in the Bay Area total.
3 The survey did not ask the rent of units that were rented to family members.

Table 5. Usage of No Rent/Discount Rent ADUs and Affordability - Combined Region
Friend/
Family
Rental
Family -
No Rent
Very Low
Income
Rents
Low Income
Rents
Moderate
Income
Rents
Above Mod.

Income
Rents
East Bay 20% 33% 0% 7% 33% 7%
Peninsula 24% 28% 3% 15% 23% 7%
North Bay 20% 25% 4% 24% 22% 5%
Bay Total (9
Counties) 22% 28% 2% 14% 26% 7%
State-Wide Total 24% 28% 1% 9% 23% 14%
O

DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT
7 DRAFT Affordability of Accessory Dwelling Units
Assigning the family/friends ADUs to income categories produces the following results:

This chart combines ADUs made available for free with Very Low Income and ADUs available for a discount with the Low Income category. The response rate in San Francisco was too low for meaningful comparison so it is not presented as its own line, but is included in the SF Bay Are Total.

Figure 2 shows affordability levels for the region. It is a graphical representation of the Bay Area as a whole.

Table 6. Affordability Including Family/Friends Rentals Region
Very Low
Income
Rents
Low
Income
Rents
Moderate
Income
Rents
Above Mod.

Income
Rents
East Bay 33% 27% 33% 7%
Peninsula 31% 39% 23% 7%
North Bay 29% 44% 22% 5%
Bay Total (9 Counties) 30% 36% 26% 7%
Statewide Total 29% 33% 23% 14%
Figure 2: Results shown for 9-county Bay Area. “Very low” rents include units available to family or friends at no cost. “Low” rents include discounted family rentals.

DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT
8 DRAFT Affordability of Accessory Dwelling Units

6. Additional Research and Considerations
In general, ADUs are affordable for several reasons:
x Many units are available for no or low cost rent to family members or friends.

Additionally, a smaller number of owners intentionally rent their ADUs below market because they believe affordable housing is important. Source: Implementing the Backyard Revolution
x ADUs tend to be fewer square feet than units in apartment buildings after controlling for bedroom size, which results in lower prices. Source: Wegmann & Chapple (2012) x ADU owners tend to prefer their choice of tenant versus maximizing rent. Additionally, they will often not significantly raise rents once they have a tenant they like. Source:

Baird + Driskell homeowner focus groups.
x ADU owners often do not know the value of their unit so they may underprice it unintentionally. Source: Baird + Driskell homeowner focus groups.

A number of other studies have found that many ADUs are used as housing for friends or family for free or very low cost, consistent with the UC Berkeley Report. A selection of these are outlined below:
x A 2012 UC Berkeley publication entitled “Scaling up Secondary Unit Production in the East Bay” indicates that approximately half of all secondary dwelling units are available for no rent.
4 x A 2018 report entitled “Jumpstarting the market for ADUs” surveyed ADUs in Portland, Seattle, and Vancouver and found that approximately 17% of ADUs were occupied by a friend or family member for free.5
x A 2014 analysis entitled “Accessory dwelling units in Portland, Oregon: evaluation and interpretation of a survey of ADU owners” found that “18% of Portland ADUs are occupied for free or extremely low cost.”6

7. Notes
This report was funded by the Regional Early Action Grant, which the state legislature provided to ABAG and other council of governments. Analysis was conducted by Baird + Driskell Community Planning.

Please contact Josh Abrams, [email protected] for more information. 4 https://communityinnovation.berkeley.edu/sites/default/files/scaling_up_secondary_unit_production_in_the_ea st_bay.pdf?width=1200&height=800&iframe=true
5 http://ternercenter.berkeley.edu/uploads/ADU_report_4.18.pdf 6 https://accessorydwellings.files.wordpress.com/2014/06/adusurveyinterpret.pdf

This Page
Intentionally
Left Blank

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: 11/29/2023
ITEM NO: 1

ADDENDUM
DATE: November 28, 2023
TO: Planning Commission
FROM: Joel Paulson, Community Development Director
SUBJECT: Consider and Make a Recommendation to the Town Council on the Draft Revised 2023-2031 Housing Element. Location: Town-Wide. General Plan Amendment Application GP-22-003.

REMARKS:

Exhibit 5 contains a table demonstrating that the Draft Revised Housing Element (November 2023) contains each of the elements mandated by State law.

Exhibit 6 contains a Draft Resolution for adoption by the Planning Commission should a majority vote to recommend adoption of the Draft Revised Housing Element (November 2023) to the Town Council.

On November 16, 2023, the Draft Revised Housing Element (November 2023) was made available for a seven-day review period, ending on November 27, 2023, as required prior to resubmittal to the Department of Housing and Community Development (HCD). Exhibit 7 contains the one public comment letter received from the Los Gatos Community Alliance (“LGCA”). The public comments provided during the seven-day public comment period above were considered and it was determined that no revisions were required to the Draft Revised 2023-2031 Housing Element (November 2023). The following provides staff’s response to each public comment submitted.
1) LGCA Comment #1, Table 10-3: The method for calculating the percentage of the surplus is consistent with other Santa Clara County jurisdictions who have received certification of their Housing Element. Additionally, this method has been utilized by the Town’s Housing Element consultant with approximately 40 jurisdictions who have received certification of their Housing Element. The buffer of 25 percent, as identified in Implementation Program AS is a reflection of the March 2023 version of the Draft Revised Housing Element and could ATTACHMENT 8

PAGE 2 OF 3
SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: November 28, 2023
REMARKS (continued):
be revised to reflect the November 2023 version of the Draft Revised Housing Element, which provides a 24 percent buffer.
2) LGCA Comment #2, Projected ADU Affordability: The income and affordability distribution of ADU’s in the Housing Element was based on a technical memorandum prepared by the Association of Bay Area Governments (ABAG), titled ‘Using ADU’s to Satisfy RHNA Technical Memo.’ The ABAG information provided by the LGCA was a draft version. The Town is utilizing the recommended percentages, provided in the final version of the ABAG technical memorandum.
3) LGCA Comment #3, SB 330 Impact: The Town has received direction from HCD that No Net Loss law is only applicable once a project has been approved. The preliminary and formal SB 330 applications that the Town has received have not been approved. If and when a formal application is submitted and the project is approved, that will trigger the “no net loss” requirements, and the Town will comply with the “no net loss” requirements. 4) LGCA Comment #4, No Net Loss Buffer: As discussed in the response to comment #3, the Town has received direction from HCD that No Net Loss law is only applicable once a project has been approved. The preliminary and formal SB 330 applications that the Town has received have not been approved. If and when a formal application is submitted and the project is approved that will trigger the “no net loss” requirements, and the Town will comply with the “no net loss” requirements.
5) LGCA Comment #5, Program References to Town’s Affordable Housing In Lieu Fund:

The Below Market Price (BMP) housing in-lieu fees must be used for affordable housing purposes and are allocated as directed by the Town Council as part of the budgeting process. Every year the Town Council identifies their strategic priorities as an initial step in the budget development process. The Town Council has made affordable housing partnerships a 2023-2025 Strategic Priority.

On November 28, 2023, the Town resubmitted the Draft Revised Housing Element (November 2023) to HCD for review and comment. Exhibit 8 contains the cover letter included in the resubmittal to HCD. The entirety of the materials provided to HCD can be viewed online at:
www.losgatosca.gov/HousingElement.

Exhibit 9 contains a public comment that was erroneously not included in the November 29, 2023, Planning Commission staff report packet.

PAGE 3 OF 3
SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: November 28, 2023
EXHIBITS:

Previously received (available online at: www.losgatosca.gov/HousingElement):

1. Environmental Analysis

2. Draft Revised 2023-2031 Housing Element (November 2023)

3. Response Memorandum to the HCD Draft Preliminary Review Matrix Previously received with the November 29, 2023, Staff Report:

4. Public Comment received between 11:01 a.m., Wednesday, November 15, 2023, and 11:00 a.m., Wednesday, November 22, 2023
Received with this Addendum Report:

5. Substantial Compliance with Housing Element Law (Government Code Title 7, Division 1, Chapter 3, Article 10.6 [65580–65589.11)

6. Draft Resolution for Adoption of the Draft Revised Housing Element (November 2023)

7. Public Comments Received During the Seven-Day Review Period

8. HCD Cover Letter

9. Public Comment Received on November 21, 2023

This Page
Intentionally
Left Blank

Town of Los Gatos Page 1
November 28, 2023
Sec. 65583. the housing element shall consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing. The housing element shall identify adequate sites for housing, including rental housing, factory-built housing, mobile homes, and emergency shelters, and shall make adequate provision for the existing and projected needs of all economic segments of the community. The element shall contain all of the following:

Required Findings of Substantial Compliance with State Housing Element (HE) Law Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
1 65583(a) An assessment of housing needs and an inventory of resources and constraintsrelevant to the meeting of these needs. The assessment and inventory shall include all of the following:

Quantification
and Analysis of
Need
Housing Needs: Chapter 10, pages 10-16 through
10-31. Appendix A, pages A-109 through A-167.

The entirety of Appendix B.

Yes
2 65583(a)(1) 1) An analysis of population and employment trends and documentation of projections.
2) A quantification of the locality’s existing and projected housing needsfor all income levels, including extremely low-income households, as defined in subdivision (b) of Section 50105 and Section 50106 of the Health and Safety Code.
3) These existing and projected needs shall include the locality’s share of the regional housing need in accordance with Section 65584. Local agencies shall calculate the subset of very low-income households allotted under Section 65584 that qualify as extremely low-income households. The local agency may either use available census data to calculate the percentage of very low-income households that qualify as extremely low-income households or presume that 50 percent of the very low-income households qualify as extremely low-income households. The number of extremely low-income households and very low-income households shall equal the jurisdiction’s allocation of very low-income households pursuant to Section 65584.

Quantification
and Analysis of
Need
1) Appendix B, pages B-7 through B-13 and
Chapter 10, page 10-23
2) Appendix A, pages A-2 and A-111 through
A-113
3) Appendix A, pages A-111 through A-113.

Supporting details are provided in Appendix A.

Yes
3 65583(a)(2) An analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition.

Quantification
and Analysis of
Need
Cost Burden: Appendix A, pages A-109 through
A-123 and pages A-161 through A-164.

Appendix B, pages B-32 through B-36.

Housing adequacy and age of structures:

Appendix A, page A-139 through A-140.

Appendix B, pages B-22 through B-23.

Substandard housing: Appendix A, pages 132
through A-138. Appendix B, pages B-25 through
B-27.

Overcrowding: Appendix A, pages A-123
through A-130 and page A-165. Appendix B,
Yes
EXHIBIT 5

Town of Los Gatos Page 2
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
pages B-32 through B-39.

Household characteristics: Appendix B, pages B3 through B-21. 4 65583(a)(3) An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential forredevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship ofzoning and public facilities and services to these sites, and an analysis of the relationship of the sites identified in the land inventory to the jurisdiction’s duty to affirmatively further fair housing.

Quantification
and Analysis of
Need
Appendix D, pages D-2 through D-67.

Appendix C, pages C-1 through C-15 and page
C-53. Appendix A, pages A-152 through A161.

Yes
5 65583(a)(4)(A) The identification of a zone or zones where emergency shelters are allowed as a permitted use without a conditional use or other discretionary permit. The identified zone or zones shall include sufficient capacity to accommodate the need for emergency shelter identified in paragraph (7), except that each local government shall identify a zone or zones that can accommodate at least one year-round emergency shelter. If the local government cannot identify a zone or zones with sufficient capacity, the local government shall include a program to amend its zoning ordinance to meet the requirements of this paragraph within one year of the adoption of the housing element. The local government may identify additional zones where emergency shelters are permitted with a conditional use permit. The local government shall also demonstrate that existing or proposed permit processing, development, and management standards are objective and encourage and facilitate the development of, or conversion to, emergency shelters. Emergency shelters may only be subject to those development and management standards that apply to residential or commercial development within the same zone except that a local government may apply written, objective standards that include all of the following:

Zoning for a
Variety of Housing
Types
Chapter 10, Implementation Program AP, pages
10-64 through 10-65. Appendix B, pages B-55
through B-56. Appendix C, pages C-59 through
C-60. Estimated homeless count and capacity:

Appendix C, page C-59.

Yes

Town of Los Gatos Page 3
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
6 65583(a)(4)(A)(i) The maximum number of beds or persons permitted to be served nightly by the facility.

Zoning for a
Variety of Housing
Types
Appendix C, pages C-59 through C-60. Yes
7 65583(a)(4)(A)(ii) Sufficient parking to accommodate all staff working in the emergency shelter, provided that the standards do not require more parking for emergency sheltersthan other residential or commercial uses within the same zone.

Zoning for a
Variety of Housing
Types
Chapter 10, Implementation Program AP, pages
10-64 through 10-65 and further described in
Appendix C, page C-59.

Yes
8 65583(a)(4)(A)(iii) The size and location of exterior and interior onsite waiting and client intake areas.

Zoning for a
Variety of Housing
Types
Chapter 10, Implementation Program AP, pages
10-64 through 10-65 indicatesthat the Town
shall amend the Town Code to align with all
State requirements on the provision of
emergency shelters.

Yes
9 65583(a)(4)(A)(iv) The provision of onsite management. Zoning for a Variety of Housing
Types
Chapter 10, Implementation Program AP, pages
10-64 through 10-65 indicatesthat the Town
shall amend the Town Code to align with all
State requirements on the provision of
emergency shelters.

Yes
10 65583(a)(4)(A)(v) The proximity to other emergency shelters, provided that emergency shelters are not required to be more than 300 feet apart.

Zoning for a
Variety of Housing
Types
Chapter 10, Implementation Program AP, pages
10-64 through 10-65 indicatesthat the Town
shall amend the Town Code to align with all
State requirements on the provision of
emergency shelters.

Yes
11 65583(a)(4)(A)(vi) The length ofstay. Zoning for a
Variety of Housing
Types
Definition of emergency shelter provided in
Appendix C, page C-59 and Chapter 10,
Implementation Program AP, pages 10-64
through 10-65 indicates that the Town shall
amend the Town Code to align with all State
requirements on the provision of emergency
shelters.

Yes
12 65583(a)(4)(A)(vii) Lighting. Zoning for a
Variety of Housing
Types
Chapter 10, Implementation Program AP, pages
10-64 through 10-65 indicatesthat the Town
shall amend the Town Code to align with all
State requirements on the provision of
emergency shelters.

Yes
13 65583(a)(4)(A)(viii) Security during hoursthat the emergency shelter isin operation. Zoning for a Variety of Housing
Types
Chapter 10, Implementation Program AP, pages
10-64 through 10-65 indicatesthat the Town
shall amend the Town Code to align with all
State requirements on the provision of
emergency shelters.

Yes
14 65583(a)(4)(B) The permit processing, development, and management standards applied under this paragraph shall not be deemed to be discretionary acts within the meaning of the California Environmental Quality Act Zoning for a
Variety of Housing
Chapter 10, Implementation Program AP, pages
10-64 through 10-65 indicatesthat the Town
shall amend the Town Code to align with all
Yes

Town of Los Gatos Page 4
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
(Division 13 (commencing with Section 21000) of the Public Resources Code).

Types State requirements on the provision of
emergency shelters.
15 65583(a)(4)(C) A local government that can demonstrate to the satisfaction of the department the existence of one or more emergency shelters either within its jurisdiction or pursuant to a multijurisdictional agreement that can accommodate that jurisdiction’s need for emergency shelter identified in paragraph (7) may comply with the zoning requirements of subparagraph (A) by identifying a zone or zones where new emergency shelters are allowed with a conditional use permit.

Zoning for a
Variety of Housing
Types
Capacity to accommodate emergency shelters
and zones where they are permitted by-right
discussed in Appendix C, page C-59.

Yes
16 65583(a)(4)(D) A local government with an existing ordinance or ordinancesthat comply with this paragraph shall not be required to take additional action to identify zones for emergency shelters. The housing element must only describe how existing ordinances, policies, and standards are consistent with the requirements of this paragraph.

Zoning for a
Variety of Housing
Types
Chapter 10, Implementation Program AP, pages
10-64 through 10-65 indicatesthat the Town
shall amend the Town Code to align with all
State requirements on the provision of
emergency shelters.

Yes
17 65583(a)(5) 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, local processing and permit procedures, and any locally adopted ordinances that directly impact the cost and supply of residential development. The analysis shall also demonstrate local efforts to remove governmental constraints that hinder the locality from meeting itsshare of the regional housing need in accordance with Section 65584 and from meeting the need for housing for persons with disabilities, supportive housing, transitional housing, and emergency shelters identified pursuant to paragraph (7).

Actual and
Potential
Governmental
Constraints
Supportive housing, transitional housing, and
emergency shelters: Appendix C, pages C-16
through C-12 and Chapter 10, Implementation
Program AP, pages 10-64 through 10-65
indicates that the Town shall amend the Town
Code to align with all State requirements on
the provision of transitional and supportive
housing.

Disabled: Chapter 10, Implementation Program
AP, page 10-65 indicates the Town will prioritize
special needs housing by allowing for reduced
processing times and streamlined procedures
for applicable zoning/land use applications.

Include preferential handling of special needs
populations in management plans and
regulatory agreements of funded projects.

Yes
18 65583(a)(6) An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the availability of financing, the price of land, the cost of construction, the requests to develop housing at densities below those anticipated in the analysis required by subdivision (c) of Section 65583.2, and the length of time between receiving approval for a housing development and submittal of an application for building permitsfor that housing development that hinder the construction of a locality’s share of the regional housing need in accordance with Section 65584. The analysis shall also demonstrate local efforts to remove Potential and
Actual
Nongovernmental
Constraints
Appendix C, pages C-60 through C-64. Yes

Town of Los Gatos Page 5
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
nongovernmental constraints that create a gap between the locality’s planning for the development of housing for all income levels and the construction of that housing.
19 65583(a)(7) An analysis of any special housing needs, such as those of the elderly; persons with disabilities, including a developmental disability, as defined in Section 4512 of the Welfare and Institutions Code; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. The need for emergency shelter shall be assessed based on the capacity necessary to accommodate the most recent homeless point-in-time count conducted before the start of the planning period, the need for emergency shelter based on number of beds available on a year-round and seasonal basis, the number of shelter beds that go unused on an average monthly basis within a one-year period, and the percentage of those in emergency shelters that move to permanent housing solutions. The need for emergency shelter may be reduced by the number of supportive housing units that are identified in an adopted 10-year plan to end chronic homelessness and that are either vacant or for which funding has been identified to allow construction during the planning period. An analysis of special housing needs by a city or county may include an analysis of the need for frequent user coordinated care housing services.

Housing Needsfor
Special Needs
Populations
Special Needs: Appendix A, pages A-34 through
A-72.

Emergency shelter capacity based on point in
time homeless count: Appendix C, page C-59.

Yes
20 65583(a)(8) An analysis of opportunities for energy conservation with respect to residential development. Cities and counties are encouraged to include weatherization and energy efficiency improvements as part of publicly subsidized housing rehabilitation projects. This may include energy efficiency measures that encompass the building envelope, its heating and cooling systems, and its electrical system.

Miscellaneous Chapter 10, pages 10-34 through 10-35 and Implementation Program AK, page 10-61.

Yes
21 65583(a)(9) An analysis of existing assisted housing developments that are eligible to change from low-income housing uses during the next 10 years due to termination ofsubsidy contracts, mortgage prepayment, or expiration of restrictions on use. “Assisted housing developments,” for the purpose of this section, shall mean multifamily rental housing that receives governmental assistance under federal programs listed in subdivision (a) of Section 65863.10, state and local multifamily revenue bond programs, local redevelopment programs, the federal Community Development Block Grant Program, or local in-lieu fees. “Assisted housing developments” shall also include multifamily rental units that were developed pursuant to a local inclusionary housing Affordable Housing
Units At-Risk of
Conversion
Appendix A, pages A-29 through A-31 and
Appendix B, pages B-24 through B-25.

Yes

Town of Los Gatos Page 6
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
program or used to qualify for a density bonus pursuant to Section 65916.
22 65583(a)(9)(A) The analysis shall include a listing of each development by project name and address, the type of governmental assistance received, the earliest possible date of change from low-income use, and the total number of elderly and nonelderly units that could be lost from the locality’s lowincome housing stock in each year during the 10-year period. For purposes ofstate and federally funded projects, the analysisrequired by this subparagraph need only contain information available on a statewide basis.

Affordable Housing
Units At- Risk of
Conversion
Appendix A, pages A-29 through A-31 and
Appendix B, pages B-24 through B-25.

N/A
23 65583(a)(9)(B) The analysis shall estimate the total cost of producing new rental housing that is comparable in size and rent levels, to replace the units that could change from low-income use, and an estimated cost of preserving the assisted housing developments. This cost analysis for replacement housing may be done aggregately for each five-year period and does not have to contain a project-by-project cost estimate.

Affordable Housing
Units At-Risk of
Conversion
The Town has no deed restricted affordable
units at risk of conversion to market rate
housing.

N/A
24 65583(a)(9)(C) The analysis shall identify public and private nonprofit corporations known to the local government that have legal and managerial capacity to acquire and manage these housing developments.

Affordable Housing
Units At-Risk of
Conversion
The Town has no deed restricted affordable
units at risk of conversion to market rate
housing.

N/A
25 65583(a)(9)(D) The analysis shall identify and consider the use of all federal, state, and local financing and subsidy programs that can be used to preserve, for lower income households, the assisted housing developments, identified in this paragraph, including, but not limited to, federal Community Development Block Grant Program funds, tax increment funds received by a redevelopment agency of the community, and administrative fees received by a housing authority operating within the community. In considering the use of these financing and subsidy programs, the analysis shall identify the amounts of funds under each available program that have not been legally obligated for other purposes and that could be available for use in preserving assisted housing developments.

Affordable Housing
Units At-Risk of
Conversion
The Town has no deed restricted affordable
units at risk of conversion to market rate
housing.

N/A
26 65583(b)(1) A statement of the community’s goals, quantified objectives, and policies relative to affirmatively furthering fair housing and to the maintenance, preservation, improvement, and development of housing.

Public Participation Chapter 10, pages 10-35 through 10-40, Implementation Program AT on page 10-69,
and pages 10-73 through 10-75.

Yes

Town of Los Gatos Page 7
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
27 65583(b)(2) It is recognized that the total housing needs identified pursuant to subdivision (a) may exceed available resources and the community’s ability to satisfy this need within the content of the general plan requirements outlined in Article 5 (commencing with Section 65300).

Under these circumstances, the quantified objectives need not be identical to the total housing needs. The quantified objectives shall establish the maximum number of housing units by income category, including extremely low income, that can be constructed, rehabilitated, and conserved over a five-year time period.

Quantification and
Analysis of Need
Table 10-4 of Chapter 10, page 10-34. Yes
28 65583(c) A program that sets forth a schedule of actions during the planning period, each with a timeline for implementation, that 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 through the administration of land use and development controls, the provision of regulatory concessions and incentives, the utilization of appropriate federal and state financing and subsidy programs when available, and the utilization of moneysin a low- and moderate-income housing fund of an agency if the locality has established a redevelopment project area pursuant to the Community
Redevelopment Law (Division 24 (commencing with Section 33000) of the Health and Safety Code). In order to make adequate provision for the housing needs of all economic segments of the community, the program shall do all of the following:

Schedule of
Actions/Programs
Timeframe: Chapter 10, pages 10-41 through
10-72.

Regulatory incentives and concessions: Chapter
10, Policy HE-3.1 on page 10-38 and
Implementation Programs N, O, and Q.

Yes
29 65583(c)(1) Identify actions that will be taken to make sites available during the planning period with appropriate zoning and developmentstandards 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 Section 65584.09. Sites shall be identified as needed to affirmatively further fair housing and to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobile homes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing.

Schedule of
Actions/Programs
Chapter 10, Implementation Program C on
pages 10-40 through 10-41.

Yes
30 65583(c)(1)(A) Where the inventory ofsites, pursuant to paragraph (3) ofsubdivision (a), does not identify adequate sites to accommodate the need for groups of all household income levels pursuant to Section 65584, rezoning of those sites, including adoption of minimum density and development standards, for jurisdictions with an eight-year housing element planning period pursuant to Section 65588, shall be completed no later than three years after either the date the housing element is adopted pursuant to subdivision (f) of Section 65585 or the date that is 90 days after receipt of comments from the department Schedule of
Actions/Programs
Chapter 10, Implementation Programs AQ and
AR on pages 10-66 through 10-68 for the
rezonings that were adopted by the Town
Council on November 21, 2023.

Yes

Town of Los Gatos Page 8
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
pursuant to subdivision (b) of Section 65585, whichever is earlier, unless the deadline is extended pursuant to subdivision (f).

Notwithstanding the foregoing, for a local government that fails to adopt a housing element that the department has found to be in substantial compliance with this article within 120 days of the statutory deadline in Section 65588 for adoption of the housing element, rezoning of those sites, including adoption of minimum density and development standards, shall be completed no later than one year from the statutory deadline in Section 65588 for adoption of the housing element.
31 65583(c)(1)(B) Where the inventory ofsites, pursuant to paragraph (3) ofsubdivision (a), does not identify adequate sites to accommodate the need for groups of all household income levels pursuant to Section 65584, the program shall identify sites that can be developed for housing within the planning period pursuant to subdivision (h) of Section 65583.2. The identification of sites shall include all components specified in Section 65583.2.

Schedule of
Actions/Programs
Chapter 10, Implementation Programs AQ and
AR on pages 10-66 through 10-68 for the
rezonings that were adopted by the Town
Council on November 21, 2023.

Yes
32 65583(c)(1)(C) Where the inventory ofsites pursuant to paragraph (3) of subdivision (a) does not identify adequate sites to accommodate the need for farmworker housing, the program shall provide for sufficient sites to meet the need with zoning that permits farmworker housing use by right, including density and development standards that could accommodate and facilitate the feasibility of the development of farmworker housing for low- and very low income households.

Schedule of
Actions/Programs
Chapter C, page C-60 for discussion that there
are not any permanent or seasonal
farmworkers living in Los Gatos nor any migrant
worker student populations. Implementation
Program AP, pages 10-64 through 10-65 states
that the Town will modify the Town Code to
allow Employee Housing per Health and Safety
Code Section 17000, et seq.

Yes
33 65583(c)(2) Assist in the development of adequate housing to meet the needs of extremely low, very low, low-, and moderate-income households.

Schedule of
Actions/Programs
Chapter 10, Implementation Programs N, O, P,
and T.

Yes
34 65583(c)(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. 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. Transitional housing and supportive housing shall be considered a residential use of property and shall be subject only to those restrictions that apply to other residential dwellings of the same type in the same zone.

Supportive housing, as defined in Section 65650, shall be a use by right in all zones where multifamily and mixed uses are permitted, as provided in Article 11 (commencing with Section 65650).

Schedule of
Actions/Programs
Chapter 10, Policies HE-3.1 through HE-3.5 and
Implementation Programs K, J, L, O, Q, AA, AB,
AC, AP, and AW.

Chapter 10, Implementation Program AP, pages
10-64 through 10-65 indicatesthat the Town
shall amend the Town Code to align with all
State requirements on the provision of
emergency shelters.

Yes
35 65583(c)(4) Conserve and improve the condition of the existing affordable housing stock, which may include addressing ways to mitigate the loss of dwelling units demolished by public or private action.

Schedule of
Actions/Programs
Chapter 10, Implementation Programs I, P, AG,
AI, and AJ.

Yes

Town of Los Gatos Page 9
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
36 65583(c)(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 protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2), Section 65008, and any other state and federal fair housing and planning law.

Schedule of
Actions/Programs
Chapter 10, Implementation Programs I, N, O,
P, T, U, V, X, and AT.

Yes
37 65583(c)(6) Preserve for lower income households the assisted housing developmentsidentified pursuant to paragraph (9) ofsubdivision (a).

The program for preservation of the assisted housing developments shall utilize, to the extent necessary, all available federal, state, and local financing and subsidy programs identified in paragraph (9) of subdivision (a), except where a community has other urgent needs for which alternative funding sources are not available. The program may include strategies that involve local regulation and technical assistance.

Schedule of
Actions/Programs
Chapter 10, Implementation Programs AG on
page 10-59.

Yes
38 65583(c)(7) Develop a plan that incentivizes and promotes the creation of accessory dwelling units that can be offered at affordable rent, as defined in Section 50053 of the Health and Safety Code, for very low, low-, or moderate-income households. For purposes of this paragraph, “accessory dwelling units” hasthe same meaning as “accessory dwelling unit” as defined in paragraph (4) of subdivision (i) of Section 65852.2.

Schedule of
Actions/Programs
Chapter 10, Implementation Programs Q on
pages 10-49 through 10-50.

Yes
39 65583(c)(8) Include an identification of the agencies and officialsresponsible for the implementation of the various actions and the means by which consistency will be achieved with other general plan elements and community goals.

Schedule of
Actions/Programs
Chapter 10, Section 10.6 Implementation
Programs, pages 10-41 through 10-72.

Yes
40 65583(c)(9) Include a diligent effort by the local government to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort.

Public Participation Chapter 10, page 10-10 through 10-16 and Appendix I for additional details.

Yes
41 65583(c)(10)(A) Affirmatively further fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2. The program shall include an assessment of fair housing in the jurisdiction that shall include all of the following components:

Affirmatively
Further Fair
Housing
See Appendix A for supporting details of the Fair
Housing Analysis.

Yes
42 65583(c)(10)(A)(i) A summary of fair housing issuesin the jurisdiction and an assessment of the jurisdiction’s fair housing enforcement and fair housing outreach capacity.

Affirmatively
Further Fair
Housing
Appendix A, page A-20 through A-28 and A-67
through A-72.

Yes

Town of Los Gatos Page 10
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
43 65583(c)(10)(A)(ii) An analysis of available federal, state, and local data and knowledge to identify integration and segregation patterns and trends, racially or ethnically concentrated areas of poverty and affluence, disparities in access to opportunity, and disproportionate housing needs, including displacement risk. The analysis shall identify and examine such patterns, trends, areas, disparities, and needs, both within the jurisdiction and comparing the jurisdiction to the region in which it is located, based on race and other characteristics protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2) and Section 65008.

Affirmatively
Further Fair
Housing
Appendix A, pages A-34 through A-72. Yes
44 65583(c)(10)(A)(iii) An assessment of the contributing factors, including the local and regional historical origins and current policies and practices, for the fair housing issues identified under clauses (i) and (ii).

Affirmatively
Further Fair
Housing
Appendix A, pages A-16 through A-28. Yes
45 65583(c)(10)(A)(iv) An identification of the jurisdiction’s fair housing priorities and goals, giving highest priority to those factors identified in clause (iii) that limit or deny fair housing choice or access to opportunity, or negatively impact fair housing or civil rights compliance, and identifying the metrics and milestones for determining what fair housing results will be achieved.

Affirmatively
Further Fair
Housing
Chapter 10, pages 10-73 through 10-75.

Appendix A, pages A-67 through A-72 and
pages A-167 through A-171.

Yes
46 65583(c)(10)(A)(v) Strategies and actions to implement those priorities and goals, which may include, but are not limited to, enhancing mobility strategies and encouraging development of new affordable housing in areas of opportunity, as well as place-based strategies to encourage community revitalization, including preservation of existing affordable housing, and protecting existing residents from displacement.

Affirmatively
Further Fair
Housing
Chapter 10, pages 10-73 through 10-75. Yes
47 65583(c)(10)(B) A jurisdiction that completes or revises an assessment of fair housing pursuant to Subpart A (commencing with Section 5.150) of Part 5 of Subtitle A of Title 24 of the Code of Federal Regulations, as published in Volume 80 of the Federal Register, Number 136, page 42272, dated July 16, 2015, or an analysis of impediments to fair housing choice in accordance with the requirements of Section 91.225 of Title 24 of the Code of Federal Regulations in effect before August 17, 2015, may incorporate relevant portions of that assessment or revised assessment of fair housing or analysis or revised analysis of impediments to fair housing into its housing element.

Affirmatively
Further Fair
Housing
Appendix G. Yes
48 65583(c)(10)(C) The requirements of this paragraph shall apply to housing elements due to be revised pursuant to Section 65588 on or after January 1, 2021.

Affirmatively
Further Fair
Housing
Noted. Yes
49-
72 65583(d) - (j) N/A - The Town relies on its own zoning to demonstrate capacity for emergency shelters. See above.

Zoning for a
Variety of Housing
Types
Chapter 10, Implementation Program AP, pages
10-64 through 10-65 indicatesthat the Town
shall amend the Town Code to align with all
State requirements on the provision of
emergency shelters.

N/A
73 65583.1(a) The Department of Housing and Community Development, in evaluating Methodsfor Land Use/Rezoning Changes: Chapter 10, Yes

Town of Los Gatos Page 11
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
a proposed or adopted housing element for substantial compliance with this article, may allow a city or county to identify adequate sites, as required pursuant to Section 65583, by a variety of methods, including, but not limited to, redesignation of property to a more intense land use category and increasing the density allowed within one or more categories. The department may also allow a city or county to identify sites for accessory dwelling units based on the number of accessory dwelling units developed in the prior housing element planning period whether or not the units are permitted by right, the need for these units in the community, the resources or incentives available for their development, and any other relevant factors, as determined by the department. Nothing in this section reduces the responsibility of a city or county to identify, by income category, the total number of sites for residential development as required by this article.
identifying
adequate sites/
site inventory
Implementation Programs AQ and AR to create
and apply the Housing Element Overlay Zone 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.

ADUs: Based on the average of ADU building
permits issued between the years 2020 to 2022,
Appendix D, pages D-68 through D-69.
74-
115
65583.1(b) - (c) The Department of Housing and Community Development may allow a city or county to substitute the provision of units for up to 25 percent of the community's obligation to identify adequate sites for any income category in its housing element pursuant to paragraph (1) of subdivision (c) of Section 65583 where the community includes in its housing element a program committing the local government to provide units in that income category within the city or county that will be made available through the provision of committed assistance during the planning period covered by the element to low- and very low income households at affordable housing costs or affordable rents, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, and which meet the requirements of paragraph (2). Except as otherwise provided in this subdivision, the community may substitute one dwelling unit for one dwelling unit site in the applicable income category. The program shall do all of the following:
(A) Identify the specific, existing sources of committed assistance and dedicate a specific portion of the funds from those sources to the provision of housing pursuant to this subdivision.
(B) Indicate the number of units that will be provided to both low- and very low-income households and demonstrate that the amount of dedicated funds is sufficient to develop the units at affordable housing costs or affordable rents.
(C) Demonstrate that the units meet the requirements of paragraph (2).

Methodsfor
identifying
adequate sites/
site inventory

N/A N/A
116 65583.1(d) A city or county may reduce its share of the regional housing need by the number of units built between the start of the projection period and the deadline for adoption of the housing element. If the city or county reduces its share pursuant to this subdivision, the city or county shall include in the housing element a description of the methodology for assigning those housing units to an income category based on actual or projected sales price, rent levels, or other mechanisms establishing affordability.

Methodsfor
identifying
adequate sites/
site inventory
Chapter 10, page 10-33. Appendix D, pages D-2
and D-72.

Yes

Town of Los Gatos Page 12
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
117 65583.2(a) A city’s or county’sinventory of land suitable for residential development pursuant to paragraph (3) of subdivision (a) of Section 65583 shall be used to identify sites throughout the community, consistent with paragraph (10) ofsubdivision (c) of Section 65583, that can be developed for housing within the planning period and that are sufficient to provide for the jurisdiction’s share of the regional housing need for all income levels pursuant to Section 65584. As used in this section, “land suitable for residential development” includes all of the following sites that meet the standards set forth in subdivisions (c) and (g):

Inventory of land
suitable for
development/
vacant sites
Appendix D. Yes
118 65583.2(a)(1) Vacantsiteszoned for residential use. Inventory of land suitable for
development/
vacantsites
Appendix D, pages D-10 through D-12. Yes
119 65583.2(a)(2) Vacantsiteszoned for nonresidential use that allowsresidential development.

Inventory of land
suitable for
development/
vacantsites
Appendix D, pages D-10 through D-14. Yes
120 65583.2(a)(3) Residentially zoned sites that are capable of being developed at a higher density, including sites owned or leased by a city, county, or city and county.

Inventory of land
suitable for
development/
vacantsites
Appendix D, pages D-4 through D-8. Yes
121 65583.2(a)(4) 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, as necessary, rezoned for, to permit residential use, including sites owned or leased by a city, county, or city and county.

Inventory of land
suitable for
development/
vacant sites
Chapter 10, Implementation Programs AQ and
AR, pages 10-66 through 10-68 to create and
apply the Housing Element Overlay Zone (HEOZ)
to apply to the sites included in the Site
Inventory to modify the development standards
(i.e., density, lot coverage, FAR, height) on
those sites. The rezonings were adopted by the
Town Council on November 21, 2023.

Yes
122 65583.2(b) The inventory of land shall include all of the following: Inventory of land suitable for
development/
vacantsites
Appendix D, Sites Inventory Analysis and
Appendix H, Sites Inventory Form.

Yes
123 65583.2(b)(1) A listing of properties by assessor parcel number. Inventory of land suitable for
development/
vacantsites
Appendix D, Sites Inventory Analysis and
Appendix H, Sites Inventory Form.

Yes

Town of Los Gatos Page 13
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
124 65583.2(b)(2) The size of each property listed pursuant to paragraph (1), and the general plan designation and zoning of each property.

Inventory of land
suitable for
development/
vacantsites
Appendix D, Sites Inventory Analysis and
Appendix H, Sites Inventory Form.

Yes
125 65583.2(b)(3) For nonvacant sites, a description of the existing use of each property.

If a site subject to this paragraph is owned by the city or county, the description shall also include whether there are any plans to dispose of the property during the planning period and how the city or county will comply with Article 8 (commencing with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5.

Inventory of land
suitable for
development/
vacant sites
Appendix D, Sites Inventory Analysis and
Appendix H, Sites Inventory Form.

Yes
126 65583.2(b)(4) A general description of any environmental constraints to the development of housing within the jurisdiction, the documentation for which has been made available to the jurisdiction. Thisinformation need not be identified on a site-specific basis.

Inventory of land
suitable for
development/
vacant sites
Appendix C, pages C-54 through C-56. Yes
127 65583.2(b)(5)(A) A description of existing or planned water, sewer, and other dry utilities supply, including the availability and access to distribution facilities.

Inventory of land
suitable for
development/
vacantsites
Appendix C, pages C-62 through C-64. Yes
128 65583.2(b)(5)(B) Parcels included in the inventory must have sufficient water, sewer, and dry utilities supply available and accessible to support housing development or be included in an existing general plan program or other mandatory program or plan, including a program or plan of a public or private entity providing water or sewer service, to secure sufficient water, sewer, and dry utilities supply to support housing development. This paragraph does not impose any additional duty on the city or county to construct, finance, or otherwise provide water, sewer, or dry utilities to parcels included in the inventory.

Inventory of land
suitable for
development/
vacant sites
Appendix H, Sites Inventory Form. Yes
129 65583.2(b)(6) Sites identified as available for housing for above moderate-income householdsin areas not served by public sewer systems. This information need not be identified on a site-specific basis.

Inventory of land
suitable for
development/
vacant sites

N/A N/A
130 65583.2(b)(7) A map that shows the location of the sitesincluded in the inventory, such as the land use map from the jurisdiction’s general plan, for reference purposes only.

Inventory of land
suitable for
development/
vacantsites
Appendix D, pages D-15 through D-67. Yes

Town of Los Gatos Page 14
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
131 65583.2(c) Based on the information provided in subdivision (b), a city or county shall determine whether each site in the inventory can accommodate the development of some portion of its share of the regional housing need by income level during the planning period, as determined pursuant to Section 65584. The inventory shall specify for each site the number of units that can realistically be accommodated on that site and whether the site is adequate to accommodate lower income housing, moderate-income housing, or above moderate-income housing. A nonvacant site identified pursuant to paragraph (3) or (4) of subdivision (a) in a prior housing element and a vacant site that has been included in two or more consecutive planning periods that was not approved to develop a portion of the locality’s housing need shall not be deemed adequate to accommodate a portion of the housing need for lower income households that must be accommodated in the current housing element planning period unless the site is zoned at residential densities consistent with paragraph (3) of this subdivision and the site is subject to a program in the housing element requiring rezoning within three years of the beginning of the planning period to allow residential use by right for housing developments in which at least 20 percent of the units are affordable to lower income households. Notwithstanding the foregoing, for a local government that fails to adopt a housing element that the department has found to be in substantial compliance with state law within 120 days of the statutory deadline in Section 65588 for adoption of the housing element, rezoning pursuant to this subdivision shall be completed no later than one year from the statutory deadline in Section 65588 for adoption of the housing element. An unincorporated area in a nonmetropolitan county pursuant to clause (ii) of subparagraph (B) of paragraph (3) shall not be subject to the requirements of this subdivision to allow residential use by right. The analysis shall determine whether the inventory can provide for a variety of types of housing, including multifamily rental housing, factory-built housing, mobile homes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing, and whether the inventory affirmatively furthers fair housing. The city or county shall determine the number of housing units that can be accommodated on each site as follows:

Inventory of land
suitable for
development/
vacant sites
Chapter 10, Implementation Programs AQ and
AR, pages 10-66 through 10-68 to create and
apply the Housing Element Overlay Zone
(HEOZ) to apply to the sites included in the Site
Inventory to modify the development
standards (i.e., density, lot coverage, FAR,
height) on those sites. The rezonings were
adopted by the Town Council on November 21,
2023.

Chapter 10, Implementation Programs AR and
AS, pages 10-68 through 10-69, states that the
following types of sites used to fulfill the
Town’s lower income RHNA will be subjected to
by-right approval without discretionary review
pursuant to Government Code section
65583.2(H) and (I) when 20 percent or more of
the units are affordable to lower income
households:
- Rezone Sites: All sites that are to be rezoned
with the HEOZ, given that the rezoning occurs
after the statutory deadline of the Housing
Element (January 31, 2023).
- Reuse Sites: Sites that were used in the 5th
cycle Housing Element to meet the RHNA will
be rezoned with the HEOZ.

Appendix C, page C-15 for the development
standards for the HEOZ.

Appendix A, pages A-167 through A-171 for
analysis on how the Sites Inventory
affirmatively furthersfair housing.

Yes

Town of Los Gatos Page 15
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
132 65583.2(c)(1) If local law or regulationsrequire the development of a site at a minimum density, the departmentshall accept the planning agency’s calculation of the total housing unit capacity on that site based on the established minimum density. If the city or county does not adopt a law or regulation requiring the development of a site at a minimum density, then it shall demonstrate how the number of units determined for that site pursuant to this subdivision will be accommodated.

Inventory of land
suitable for
development/
vacant sites
The total capacity of the Sites Inventory in the
Housing Element is based on the minimum
density. Appendix C, page C-15 for the
minimum and maximum density range
permitted by the HEOZ.

Yes
133 65583.2(c)(2) The number of units calculated pursuant to paragraph (1) shall be adjusted as necessary, based on the land use controls and site improvementsrequirement identified in paragraph (5) ofsubdivision (a) of Section 65583, the realistic development capacity for the site, typical densities of existing or approved residential developments at a similar affordability level in that jurisdiction, and on the current or planned availability and accessibility of sufficient water, sewer, and dry utilities.

Inventory of land
suitable for
development/
vacant sites
The total number of units calculated in the
Sites Inventory in the Housing Element is based
on the minimum density. Development trends
are provided in Table D-4 of Appendix D, page
D-6.

Yes
134 65583.2(c)(2)(A) A site smaller than half an acre shall not be deemed adequate to accommodate lower income housing need unless the locality can demonstrate that sites of equivalent size were successfully developed during the prior planning period for an equivalent number of lower income housing units as projected for the site or unless the locality provides other evidence to the department that the site is adequate to accommodate lower income housing.

Inventory of land
suitable for
development/
vacant sites
Appendix D, page D-13. Yes
135 65583.2(c)(2)(B) A site larger than 10 acres shall not be deemed adequate to accommodate lower income housing need unless the locality can demonstrate that sites of equivalent size were successfully developed during the prior planning period for an equivalent number of lower income housing units as projected for the site or unless the locality provides other evidence to the department that the site can be developed as lower income housing. For purposes of this subparagraph, “site” means that portion of a parcel or parcels designated to accommodate lower income housing needs pursuant to this subdivision.

Inventory of land
suitable for
development/
vacant sites
N/A no sites over 10 acres. Yes
136 65583.2(c)(2)(C) A site may be presumed to be realistic for development to accommodate lower income housing need if, at the time of the adoption of the housing element, a development affordable to lower income households has been proposed and approved for
development on the site.

Inventory of land
suitable for
development/
vacant sites
N/A Yes

Town of Los Gatos Page 16
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
137 65583.2(c)(3) For the number of units calculated to accommodate its share of the regional housing need for lower income households pursuant to paragraph (2), a city or county shall do either of the following:

Inventory of land
suitable for
development/
vacantsites
N/A Yes
138 65583.2(c)(3)(A) Provide an analysis demonstrating how the adopted densities accommodate this need. The analysisshall include, but is not limited to, factors such as market demand, financial feasibility, or information based on development project experience within a zone or zones that provide housing for lower income households.

Inventory of land
suitable for
development/
vacant sites
Appendix D, pages D-3 through D-14. Yes
139 65583.2(c)(3)(B) The following densitiesshall be deemed appropriate to accommodate housing for lower income households:

Inventory of land
suitable for
development/
vacant sites
No response required. N/A
140 65583.2(c)(3)(B)(i) For an incorporated city within a nonmetropolitan county and for a nonmetropolitan county that has a micropolitan area:sites allowing at least 15 units per acre.

Inventory of land
suitable for
development/
vacantsites

N/A N/A
141 65583.2(c)(3)(B)(ii) For an unincorporated area in a nonmetropolitan county not included in clause (i): sites allowing at least 10 units per acre.

Inventory of land
suitable for
development/
vacantsites

N/A N/A
142 65583.2(c)(3)(B)(iii) For a suburban jurisdiction: sites allowing at least 20 units per acre. Inventory of land suitable for
development/
vacantsites

N/A N/A
143 65583.2(c)(3)(B)(iv) For a jurisdiction in a metropolitan county:sites allowing at least 30 units per acre.

Inventory of land
suitable for
development/
vacantsites
Chapter 10, Implementation Programs AQ and
AR, pages 10-68 through 10-69 to create and
apply the Housing Element Overlay Zone
(HEOZ) to apply to the sites included in the Site
Inventory to modify the development
standards (i.e., density, lot coverage, FAR,
height) on those sites, in addition to Table C-3
of Appendix C, page C-15. The rezonings were
adopted by the Town Council on November 21,
2023.

Yes

Town of Los Gatos Page 17
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
144 65583.2(c)(4)(A) For a metropolitan jurisdiction: Inventory of land suitable for
development/
vacantsites

N/A N/A
145 65583.2(c)(4)(A)(i) At least 25 percent of the jurisdiction’s share of the regional housing need for moderate-income housing shall be allocated to sites with zoning that allows at least 4 units of housing, but not more than 100 units per acre of housing.

Inventory of land
suitable for
development/
vacantsites

N/A N/A
146 65583.2(c)(4)(A)(ii) At least 25 percent of the jurisdiction’s share of the regional housing need for above moderate-income housing shall be allocated to sites with zoning that allows at least 4 units of housing.

Inventory of land
suitable for
development/
vacantsites

N/A N/A
147 65583.2(c)(4)(B) The allocation of moderate-income and above moderate-income housing to sites pursuant to this paragraph shall not be a basis for the jurisdiction to do either of the following:

Inventory of land
suitable for
development/
vacantsites

N/A N/A
148 65583.2(c)(4)(B)(i) Deny a project that does not comply with the allocation. Inventory of land suitable for
development/
vacantsites

N/A N/A
149 65583.2(c)(4)(B)(ii) Impose a price minimum, price maximum, price control, or any other exaction or condition of approval in lieu thereof. This clause does not prohibit a jurisdiction from imposing any price minimum, price maximum, price control, exaction, or condition in lieu thereof, pursuant to any other law.

Inventory of land
suitable for
development/
vacant sites

N/A N/A
150 65583.2(c)(4)(B)(iii) The provisions of thissubparagraph do not constitute a change in, but are declaratory of, existing law with regard to the allocation of sites pursuant to this section.

Inventory of land
suitable for
development/
vacantsites

N/A N/A
151 65583.2(c)(4)(C) This paragraph does not apply to an unincorporated area. Inventory of land suitable for
development/
vacantsites

N/A N/A
152 65583.2(c)(4)(D) For purposes of this paragraph: Inventory of land suitable for
development/
vacantsites

N/A N/A

Town of Los Gatos Page 18
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
153 65583.2(c)(4)(D)(i) “Housing development project” has the same meaning as defined in paragraph (2) of subdivision (h) of Section 65589.5.

Inventory of land
suitable for
development/
vacantsites

N/A N/A
154 65583.2(c)(4)(D)(ii) “Unit of housing” does not include an accessory dwelling unit or junior accessory dwelling unit that could be approved pursuant to Section 65852.2 or Section 65852.22 or through a local ordinance or other provision implementing either of those sections. This paragraph shall not limit the ability of a local government to count the actual production of accessory dwelling units or junior accessory dwelling units in an annual progress report submitted pursuant to Section 65400 or other progress report as determined by the department.

Inventory of land
suitable for
development/
vacant sites

N/A N/A
155 65583.2(c)(4)(E) Nothing in this subdivision shall preclude the subdivision of a parcel, provided that the subdivision is subject to the Subdivision Map Act (Division 2 (commencing with Section 66410)) or any other applicable law authorizing the subdivision of land.

Inventory of land
suitable for
development/
vacantsites

N/A N/A
156 65583.2(d) For purposes of this section, a metropolitan county, nonmetropolitan county, and nonmetropolitan county with a micropolitan area shall be as determined by the United States Census Bureau. A
nonmetropolitan county with a micropolitan area includes the following counties: Del Norte, Humboldt, Lake, Mendocino, Nevada, Tehama, and Tuolumne and other counties as may be determined by the United States Census Bureau to be nonmetropolitan counties with micropolitan areas in the future.

Inventory of land
suitable for
development/
vacant sites

N/A N/A
157 65583.2(e)(1) Except as provided in paragraph (2), a jurisdiction shall be considered suburban if the jurisdiction does not meet the requirements of clauses (i) and (ii) of subparagraph (B) of paragraph (3) of subdivision (c) and is located in a Metropolitan Statistical Area (MSA) of less than 2,000,000 in population, unless that jurisdiction’s population is greater than 100,000, in which case it shall be considered metropolitan. A county, not including the City and County of San Francisco, shall be considered suburban unless the county is in an MSA of 2,000,000 or greater in population in which case the county shall be considered metropolitan.

Inventory of land
suitable for
development/
vacant sites

N/A N/A

Town of Los Gatos Page 19
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
158 65583.2(e)(2)(A)(i) Notwithstanding paragraph (1), if a county that is in the San FranciscoOakland-Fremont California MSA has a population of less than 400,000, that county shall be considered suburban. If this county includes an incorporated city that has a population of less than 100,000, this city shall also be considered suburban. T his paragraph shall apply to a housing element revision cycle, as described in subparagraph (A) of paragraph (3) of subdivision (e) of Section 65588, that is in effect from July 1, 2014, to December 31, 2028, inclusive.

Inventory of land
suitable for
development/
vacant sites

N/A N/A
159 65583.2(e)(2)(A)(ii) A county subject to this subparagraph shall utilize the sum existing in the county’s housing trust fund as of June 30, 2013, for the development and preservation of housing affordable to low- and very low-income households.

Inventory of land
suitable for
development/
vacantsites

N/A N/A
160 65583.2(e)(2)(B) A jurisdiction that is classified as suburban pursuant to this paragraph shall report to the Assembly Committee on Housing and Community Development, the Senate Committee on Housing, and the Department of Housing and Community Development regarding its progress in developing low- and very low-income housing consistent with the requirements of Section 65400. The report shall be provided three times: once, on or before December 31, 2019, which report shall address the initial four years of the housing element cycle, a second time, on or before December 31, 2023, which report shall address the subsequent four years of the housing element cycle, and a third time, on or before December 31, 2027, which report shall address the subsequent four years of the housing element cycle and the cycle as a whole. The reports shall be provided consistent with the requirements of Section 9795.

Inventory of land
suitable for
development/
vacant sites
Progressreports are provided annually to the
State and reviewed annually by Town Council.

Yes
161 65583.2(f) A jurisdiction shall be considered metropolitan if the jurisdiction does not meet the requirements for “suburban area” above and is located in an MSA of 2,000,000 or greater in population, unless that jurisdiction’s population is less than 25,000 in which case it shall be considered suburban.

Inventory of land
suitable for
development/
vacant sites

N/A N/A

Town of Los Gatos Page 20
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
162 65583.2(g)(1) For sites described in paragraph (3) of subdivision (b), the city or county shall specify the additional development potential for each site within the planning period and shall provide an explanation of the methodology used to determine the development potential. The methodology shall consider factors including the extent to which existing uses may constitute an impediment to additional residential development, the city’s or county’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.

Inventory of land
suitable for
development/
vacant sites
Appendix D, pages D-2 and D-26 through D-67. Yes
163 65583.2(g)(2) In addition to the analysis required in paragraph (1), when a city or county is relying on nonvacant sites described in paragraph (3) of subdivision (b) to accommodate 50 percent or more of its housing need for lower income households, the methodology used to determine additional development potential shall demonstrate that the existing use identified pursuant to paragraph (3) of subdivision (b) does not constitute an impediment to additional residential development during the period covered by the housing element. An existing use shall be presumed to impede additional residential development, absent findings based on substantial evidence that the use is likely to be discontinued during the planning period.

Inventory of land
suitable for
development/
vacant sites
Appendix D, pages D-5 through D-12. Yes
164 65583.2(g)(3) Notwithstanding any other law, and in addition to the requirements in paragraphs (1) and (2), sites that currently have residential uses, or within the past five years have had residential uses that have been vacated or demolished, that are or were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of low or very low income, subject to any other form of rent or price control through a public entity’s valid exercise of its police power, or occupied by low- or very low income households, shall be subject to a policy requiring the replacement of all those units affordable to the same or lower income level as a condition of any development on the site. Replacement requirements shall be consistent with those set forth in paragraph (3) of subdivision (c) of Section 65915.

Inventory of land
suitable for
development/
vacant sites
Chapter 10, Implementation Program AU on
page 10-71.

Yes

Town of Los Gatos Page 21
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
165 65583.2(h) The program required by subparagraph (A) of paragraph (1) of subdivision (c) of Section 65583 shall accommodate 100 percent of the need for housing for very low and low-income households allocated pursuant to Section 65584 for which site capacity has not been identified in the inventory of sites pursuant to paragraph (3) of subdivision (a) on sites that shall be zoned to permit owner-occupied and rental multifamily residential use by right for developments in which at least 20 percent of the units are affordable to lower income households during the planning period. These sites shall be zoned with minimum density and development standards that permit at least 16 units per site at a density of at least 16 units per acre in jurisdictions described in clause (i) of subparagraph (B) of paragraph (3) of subdivision (c), shall be at least 20 units per acre in jurisdictions described in clauses (iii) and (iv) of subparagraph (B) of paragraph (3) of subdivision (c) and shall meet the standards set forth in subparagraph (B) of paragraph (5) of subdivision (b). At least 50 percent of the very low and low-income housing need shall be accommodated on sites designated for residential use and for which nonresidential uses or mixed uses are not permitted, except that a city or county may accommodate all of the very low and low-income housing need on sites designated for mixed use if those sites allow 100 percent residential use and require that residential use occupy 50 percent of the total floor area of a mixed-use project.

Inventory of land
suitable for
development/
vacant sites
Chapter 10, Implementation Programs AQ and
AR, pages 10-68 through 10-69 to create and
apply the Housing Element Overlay Zone
(HEOZ) to apply to the sites included in the Site
Inventory to modify the development
standards (i.e., density, lot coverage, FAR,
height) provide by right development when 20
percent or more of the units are affordable to
lower income households. The rezonings were
adopted by the Town Council on November 21,
2023.

Yes
166 65583.2(i) For purposes of thissection and Section 65583, the phrase “use by right” shall mean that the local government’s review of the owneroccupied or multifamily residential use may not require a conditional use permit, planned unit development permit, or other discretionary local government review or approval that would constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. Any subdivision of the sites shall be subject to all laws, including, but not limited to, the local government ordinance implementing the Subdivision Map Act. A local ordinance may provide that “use by right” does not exempt the use from design review.

However, that design review shall not constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. Use by right for all rental multifamily residential housing shall be provided in accordance with subdivision (f) of Section 65589.5.

Inventory of land
suitable for
development/
vacant sites
Chapter 10, Implementation Programs AQ and
AR, pages 10-68 through 10-69 to create and
apply the Housing Element Overlay Zone
(HEOZ) to apply to the sites included in the Site
Inventory to modify the development
standards (i.e., density, lot coverage, FAR,
height). The rezonings were adopted by the
Town Council on November 21, 2023.

Yes

Town of Los Gatos Page 22
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
167 65583.2(j) Notwithstanding any other provision of thissection, within one-half mile of a Sonoma-Marin Area Rail Transit station, housing density requirements in place on June 30, 2014, shall apply.

Inventory of land
suitable for
development/
vacantsites

N/A N/A
168 65583.2(k) For purposes of subdivisions (a) and (b), the department shall provide guidance to local governmentsto properly survey, detail, and account for sites listed pursuant to Section 65585.

Inventory of land
suitable for
development/
vacantsites

N/A N/A
169 65583.2(l)(1) The changes to thissection made by Chapter 193 of the Statutes of 2020 shall become operative on January 1, 2022.

Inventory of land
suitable for
development/
vacantsites

N/A N/A
170 65583.2(l)(2) The changes to thissection made by Chapter 193 of the Statutes of 2020 shall not apply to a housing element revision that is originally due on or before January 1, 2022, regardless of the date of adoption by the local agency.

Inventory of land
suitable for
development/
vacant sites

N/A N/A
171 65583.2(m) This section shall remain in effect only until December 31, 2028, and as of that date is repealed.

Inventory of land
suitable for
development/
vacantsites

N/A N/A
172 65583.3(a) For a housing element or amendment adopted on or after January 1, 2021, the planning agency shall submit to the department an electronic copy of its inventory of land suitable for residential development developed pursuant to paragraph (3) of subdivision (a) of Section 65583 and subdivision (b) of this section with the copy of its housing element or amendment submitted pursuant to subdivision (g) of Section 65585. The local government shall ensure, to the best of its knowledge, that the inventory of land submitted to the department is true and correct.

Sitesinventory Appendix H, Sites Inventory Form. Yes
173 65583.3(b) Notwithstanding subdivision (a) of Section 65301, each local government shall prepare the inventory required under paragraph (3) of subdivision (a) of Section 65583 using standards, forms, and definitions adopted by the department. The department may review, adopt, amend, and repeal the standards, forms, or definitions to implement this subdivision and subdivision (a) of Section 65583. Any standards, forms, or definitions adopted to implement this subdivision and subdivision (a) of Section 65583 shall not be subject to Chapter 3.5 Sitesinventory Appendix D, Sites Inventory Analysis and Appendix I, Sites Inventory Form.

Yes

Town of Los Gatos Page 23
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
(commencing with Section 11340) of Part 1 of Division 3 of Title 2. 174 65583.4(a) Notwithstanding subparagraph (A) of paragraph (1) ofsubdivision (c) of Section 65583, subdivision (c) of Section 65583.2, and subparagraph (C) of paragraph (4) ofsubdivision (e) of Section 65588, a local government shall have three years and 120 days from the statutory deadline in Section 65588 for adoption of the housing element to complete any rezonings required by subparagraph (A) of paragraph (1) of subdivision (c) of Section 65583 and subdivision (c) of Section 65583.2 if all of the following apply:

Statutory
deadline/
timeframe to
complete any
rezonings, if
applicable
Chapter 10, Implementation Programs AQ and
AR, pages 10-68 through 10-69 to create and
apply the Housing Element Overlay Zone
(HEOZ) to apply to the sites included in the Site
Inventory to modify the development
standards (i.e., density, lot coverage, FAR,
height). The rezonings were adopted by the
Town Council on November 21, 2023.

Yes
175 65583.4(a)(1) The statutory deadline in Section 65588 for adoption of the sixth revision of the housing element was in the 2021 calendar year.

Statutory
deadline/
timeframe to
complete any
rezonings, if
applicable
Section 65583.4 is N/A; Housing Element due
January 31, 2023.

N/A
176 65583.4(a)(2) The local government failed to adopt a sixth revision of the housing element that the department had found to be in substantial compliance with this article within 120 days of the statutory deadline in Section 65588 for adoption of the housing element.

Statutory
deadline/
timeframe to
complete any
rezonings, if
applicable

N/A N/A
177 65583.4(a)(3) The local government adopts a sixth revision of the housing element and the department finds the adopted element to be in substantial compliance with this article within one year of the statutory deadline established pursuant to Section 65888 for adoption of the housing element.

Statutory
deadline/
timeframe to
complete any
rezonings, if
applicable

N/A N/A

Town of Los Gatos Page 24
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
178 65583.4(b)(1) The deadline for completing required rezoning pursuant to subdivision (a) shall be extended by one year if the local government has completed the rezoning at densities sufficient to accommodate at least 75 percent of the unitsfor low- and very low-income households and if the legislative body at the conclusion of a public hearing determines, based upon substantial evidence, that any of the following circumstances exist:

Statutory
deadline/
timeframe to
complete any
rezonings, if
applicable

N/A N/A
179 65583.4(b)(1)(A) The local government has been unable to complete the rezoning because of the action or inaction beyond the control of the local government of any other state, federal, or local agency.

Statutory
deadline/
timeframe to
complete any
rezonings, if
applicable

N/A N/A
180 65583.4(b)(1)(B) The local government is unable to complete the rezoning because of infrastructure deficiencies due to fiscal or regulatory constraints.

Statutory
deadline/
timeframe to
complete any
rezonings, if
applicable

N/A N/A
181 65583.4(b)(1)(C) The local government must undertake a major revision to its general plan in order to accommodate the housing-related policies of a sustainable communities strategy or an alternative planning strategy adopted pursuant to Section 65080.

Statutory
deadline/
timeframe to
complete any
rezonings, if
applicable
The Town Council certified the Environmental
Impact Report and adopted the 2040 General Plan
on June 30, 2022. A referendum to repeal the
Land Use and Community Design Elements of the
adopted 2040 General Plan was received and
verified by the County Registrar. On October 4,
2022, the Town Council adopted a resolution to
provide that the 2020 General Plan Land Use and
Community Design Elements will govern during
the period of suspension.

Yes
182 65583.4(b)(2) The resolution and the findings shall be transmitted to the department together with a detailed budget and schedule for preparation and adoption of the required rezonings, including plans for citizen participation and expected interim action. The schedule shall provide for adoption of the required rezoning within one year of the adoption of the resolution.

Statutory
deadline/
timeframe to
complete any
rezonings, if
applicable

N/A N/A

Town of Los Gatos Page 25
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
183 65584.0(a)(1) For the fourth and subsequent revisions of the housing element pursuant to Section 65588, the department shall determine the existing and projected need for housing for each region pursuant to this article. For purposes of subdivision (a) of Section 65583, the share of a city or county of the regional housing need shall include that share of the housing need of persons at all income levels within the area significantly affected by the general plan of the city or county.

AFFH/RHNA N/A N/A
184 65584.0(a)(2) It is the intent of the Legislature that cities, counties, and cities and counties should undertake all necessary actions to encourage, promote, and facilitate the development of housing to accommodate the entire regional housing need, and reasonable actions should be taken by local and regional governments to ensure that future housing production meets, at a minimum, the regional housing need established for planning purposes. These actions shall include applicable reforms and incentives in Section 65582.1.

AFFH/RHNA Chapter 10, Implementation Programs AQ and
AR, pages 10-68 through 10-69 to create and
apply the Housing Element Overlay Zone
(HEOZ) to apply to the sites included in the Site
Inventory to modify the development
standards (i.e., density, lot coverage, FAR,
height). The rezonings were adopted by the
Town Council on November 21, 2023.

Yes
185 65584.0(a)(3) The Legislature finds and declares that insufficient housing in job centers hinders the state’s environmental quality and runs counter to the state’s environmental goals. In particular, when Californians seeking affordable housing are forced to drive longer distances to work, an increased amount of greenhouse gases and other pollutants is released and puts in jeopardy the achievement of the state’s climate goals, as established pursuant to Section 38566 of the Health and Safety Code, and clean air goals.

AFFH/RHNA N/A N/A
186 65584.0(b) The department, in consultation with each council of governments, shall determine each region’s existing and projected housing need pursuant to Section 65584.01 at least two years prior to the scheduled revision required pursuant to Section 65588. The appropriate council of governments, or for cities and counties without a council of governments, the department, shall adopt a final regional housing need plan that allocates a share of the regional housing need to each city, county, or city and county at least one year prior to the scheduled revision for the region required by Section 65588. The allocation plan prepared by a council of governments shall be prepared pursuant to Sections 65584.04 and 65584.05.

AFFH/RHNA N/A N/A
187 65584.0(c) Notwithstanding any other provision of law, the due dates for the determinations of the department or for the council of governments, respectively, regarding the regional housing need may be extended by the department by not more than 60 days if the extension will enable

AFFH/RHNA N/A N/A

Town of Los Gatos Page 26
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
access to more recent critical population or housing data from a pending or recent release of the United States Census Bureau or the Department of Finance. If the due date for the determination of the department or the council of governments is extended for this reason, the department shall extend the corresponding housing element revision deadline pursuant to Section 65588 by not more than 60 days. 188 65584.0(d) The regional housing needs allocation plan shall further all of the following objectives:

AFFH/RHNA No response required. N/A
189 65584.0(d)(1) Increasing the housing supply and the mix of housing types, tenure, and affordability in all cities and counties within the region in an equitable manner, which shall result in each jurisdiction receiving an allocation of units for low- and very low-income households.

AFFH/RHNA N/A N/A
190 65584.0(d)(2) Promoting infill development and socioeconomic equity, the protection of environmental and agricultural resources, the encouragement of efficient development patterns, and the achievement of the region’s greenhouse gas reductions targets provided by the State Air Resources Board pursuant to Section 65080.

AFFH/RHNA Chapter 10, Policy HE-1.7, page 10-36 and Chapter 10, Policies HE-5.1 and HE-5.2, page 10-39.

Yes
191 65584.0(d)(3) Promoting an improved intraregional relationship between jobs and housing, including an improved balance between the number of lowwage jobs and the number of housing units affordable to low-wage workers in each jurisdiction.

AFFH/RHNA N/A N/A
192 65584.0(d)(4) Allocating a lower proportion of housing need to an income category when a jurisdiction already has a disproportionately high share of households in that income category, as compared to the countywide distribution of households in that category from the most recent American Community Survey.

AFFH/RHNA N/A N/A
193 65584.0(d)(5) Affirmatively furthering fair housing. AFFH/RHNA No response required. N/A 194 65584.0(e) For purposes of this section, “affirmatively furthering fair housing” means taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing AFFH/RHNA Appendix A, Affirmatively Furthering Fair Housing. Yes

Town of Los Gatos Page 27
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
laws.
195 65584.0(f) For purposes of this section, “household income levels” are as determined by the department as of the most recent American Community Survey pursuant to the following code sections:

AFFH/RHNA N/A N/A
196 65584.0(f)(1) Very low incomes as defined by Section 50105 of the Health and Safety Code.

AFFH/RHNA N/A N/A
197 65584.0(f)(2) Lower incomes, as defined by Section 50079.5 of the Health and Safety Code.

AFFH/RHNA N/A N/A
198 65584.0(f)(3) Moderate incomes, as defined by Section 50093 of the Health and Safety Code.

AFFH/RHNA N/A N/A
199 65584.0(f)(4) Above moderate incomes are those exceeding the moderate-income level of Section 50093 of the Health and Safety Code.

AFFH/RHNA N/A N/A
200 65584.0(g) Notwithstanding any other provision of law, determinations made by the department, a council of governments, or a city or county pursuant to this section or Section 65584.01, 65584.02, 65584.03, 65584.04, 65584.05, 65584.06, 65584.07, or 65584.08 are exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).

AFFH/RHNA N/A N/A
201 65584.09(a) For housing elements due pursuant to Section 65588 on or after January 1, 2006, if a city or county in the prior planning period failed to identify or make available adequate sites to accommodate that portion of the regional housing need allocated pursuant to Section 65584, then the city or county shall, within the first year of the planning period of the new housing element, zone or rezone adequate sites to accommodate the unaccommodated portion of the regional housing need allocation from the prior planning period.

Rezoning/ RHNA N/A N/A
202 65584.09(b) The requirements under subdivision (a) shall be in addition to any zoning or rezoning required to accommodate the jurisdiction’s share of the regional housing need pursuant to Section 65584 for the new planning period.

Rezoning/ RHNA N/A N/A

Town of Los Gatos Page 28
November 28, 2023
Government Code Section (Reference) General HE Topic Location in Draft Revised Housing Element, November 2023 Track Change Version In Compliance?
203 65584.09(c) Nothing in this section shall be construed to diminish the requirement of a city or county to accommodate its share of the regional housing need for each income level during the planning period set forth in Section 65588, including the obligations to (1) implement programs included pursuant to Section 65583 to achieve the goals and objectives, including programs to zone or rezone land, and (2) timely adopt a housing element with an inventory described in paragraph (3) of subdivision (a) of Section 65583 and a program to make sites available pursuant to paragraph (1) of subdivision (c) of Section 65583, which can accommodate the jurisdiction’s share of the regional housing need.

Rezoning/ RHNA Chapter 10, Appendix D, Sites Inventory
Analysis, and Appendix I, Sites Inventory Form.

Yes

1 of 4
Resolution 2023-___ November 29, 2023
DRAFT RESOLUTION 2023-____

RESOLUTION OF THE PLANNING COMMISSION OF THE TOWN OF LOS GATOS

RECOMMENDING THAT THE TOWN COUNCIL ADOPT A GENERAL PLAN AMENDMENT

AMENDING 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
PROPERTY LOCATION: TOWN WIDE
APPLICANT: TOWN OF LOS GATOS
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 seven 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 moderate-income units, and 826 above moderate-income units; 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 a 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 and to date has included 19 Housing Element Advisory Board (HEAB) public meetings; a joint study session with the HEAB, Planning Commission, and Town Council; four Planning Commission meetings; Draft Resolution to
be modified by Town
Council deliberations
and direction.

EXHIBIT 6

2 of 4
Resolution 2023-___ November 29, 2023
ten Town Council meetings; two community meetings; a community meeting hosted by the Santa Clara County Planning Collaborative, a community meeting hosted by West Valley Community Services; 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, 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 provided a list of recommended revisions needed to comply with State Housing Element Law; and WHEREAS, the Draft Housing Element was changed to substantially comply with State Housing Element Law, as described in Town Council Resolution No. 2023-006; and WHEREAS, the 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, to comply with State Housing Element Law, the Town Council considered HCD’s findings and adopted Housing Element 2023-2031 (the Housing Element) on January 30, 2023, in compliance with State Housing Element Law; and
WHEREAS, on January 12, 2023, April 14, 2023, and May 30, 2023, the Town received letters from HCD stating that revisions would be needed to conform with Housing Element Law; and WHEREAS, since the receipt of the comment letters, the Town has met with HCD staff on January 27, 2023, February 9, 2023, April 21, 2023, May 10, 2023, June 21, 2023, September 5, 2023, and November 7, 2023, to discuss proposed edits intended to address HCD's requested changes and obtain preliminary feedback on those edits; and
WHEREAS, the Town conducted additional community outreach, including 19 HEAB public meetings; a joint study session with the HEAB, Planning Commission, and Town Council; four Planning Commission meetings; ten Town Council meetings; a community meeting hosted by the Santa Clara County Planning Collaborative, a community meeting hosted by West Valley Community Services; and public engagement at staff hosted information booths, and amended the adopted Housing Element; and WHEREAS, in accordance with Government Code Section 65585 (b), on February 3, 2023, March 23, 2023, September 22, 203, and November 17, 2023, the Town posted proposed amendments to the

3 of 4
Resolution 2023-___ November 29, 2023
adopted Housing Element and requested public comment for a seven-day review period, and on February 13, 2023, March 31, 2023, October 2, 2023, and November 28, 2023, the Town submitted proposed Housing Element amendments to HCD for its review; and WHEREAS, on November 15, 2023, the Planning Commission held a duly and properly noticed public hearing to consider the draft amendments to the Housing Element, the General Plan Amendment Application, and associated Environmental Analysis, received public comment, and continued the public hearing to a special meeting of November 29, 2023; and
WHEREAS, on November 29, 2023, the Planning Commission held a duly and properly noticed public hearing to consider the draft amendments to the Housing Element, the General Plan Amendment Application, and associated Environmental Analysis; and WHEREAS, the Planning Commission received testimony and documentary evidence from all interested persons who wished to testify or submit documents and considered all testimony and materials submitted, including the packet of material contained in the Planning Commission Agenda Report for their meeting on November 29, 2023, along with any and all subsequent reports and materials and public comments prepared concerning this matter.

NOW, THEREFORE, BE IT RESOLVED, THAT THE PLANNING COMMISSION 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 adopted Housing Element Update.

Although the adopted Housing Element Update could have a significant effect on the environment, all potentially significant effects were analyzed adequately in the Town of Los Gatos 2040 General Plan Environmental Impact Report (EIR), adopted with a statement of overriding considerations on June 30, 2022, pursuant to applicable standards, including CEQA Guidelines Section 15168(c)2, and the adopted Housing Element Update was consistent with the growth projections evaluated in the General Plan EIR. The Planning Commission recommends that the Town Council find all potentially significant effects of the proposed amendments to the adopted Housing Element were analyzed adequately in the Town of Los Gatos 2040 General Plan Environmental Impact Report (EIR) and are consistent with the growth projections evaluated in the General Plan EIR, as shown in the Environmental Analysis attached to the staff report as Exhibit 1.

4 of 4
Resolution 2023-___ November 29, 2023

3. In accordance with Government Code Sections 65585(e) and (f)(1), the Planning Commission has considered HCD’s findings and has found that the Town has proposed changes to the adopted Housing Element to substantially comply with Housing Element Law, as shown in the Response Memorandum dated November 16, 2023, attached to the staff report as Exhibit 3.

4. Based on substantial evidence in the record (contained in Appendix D to the proposed amended Housing Element), including development trends, Property Owner Interest Forms, improvement value to land ratio, floor area ratio, structure age, and building height, the existing uses on the non-vacant sites identified in the site inventory are likely to be discontinued during the planning period and do not constitute an impediment to planned residential development on the sites during the planning period.

NOW, THEREFORE, THE PLANNING COMMISSION RESOLVES AS FOLLOWS:

The Planning Commission hereby recommends that the Town Council adopt the proposed amendments to the 2023-2031 Housing Element, the associated General Plan Amendment Application (GP-22-003), and the Environmental Analysis attached to the staff report as Exhibits 1 and 2.

PASSED AND ADOPTED at a special meeting of the Planning Commission of the Town of Los Gatos, California, held on the 29th day of November 2023, by the following vote:

PLANNING COMMISSIONERS:

AYES:

NAYS:

ABSENT:

ABSTAIN:

SIGNED:

CHAIR, LOS GATOS PLANNING COMMISSION
DATE: _________________

Los Gatos Community Alliance
Facts Matter; Transparency Matters; Honesty Matters
www.lgca.town
November 27, 2023
Joel Paulson
Community Development Director
Town of Los Gatos
110 E. Main Street
Los Gatos, CA 95030
RE: November revised draŌ of Los Gatos 2023-2031 Housing Element Dear Mr. Paulson:

The Los Gatos Community Alliance (LGCA) is a group of concerned residents wriƟng to you regarding the revised draŌ 2023-2031 Housing Element submiƩed to HCD on November 16, 2023 (the “November draŌ HE”).

Pursuant to AB 215, the Town is required, at least seven days before submiƫng to HCD any draŌ revisions, to post any proposed revisions on its internet website and to email a link to such revisions to all individuals and organizaƟons that have previously requested noƟces relaƟng to the Town’s housing element. In a November 13 email and subsequent clarifying email sent on November 14, 2023 to the LGCA, Ms. Whelan, Town AƩorney, confirmed that the seven-day public review period did not occur as required by AB 215. Ms. Whelan also stated that the Town staff would contact HCD to request HCD to consider the date of the submiƩal to be November 27th rather than November 17th. We have not received confirmaƟon that the Town has made this request of HCD; however for the purposes of this public comment leƩer we have assumed such a request was made.

This is not the first Ɵme we have raised concerns regarding the Town’s obligaƟons under Govt Code SecƟon 65585(b)(1). One of the purposes of the public review process is to allow the Town to discover public concerns and, when appropriate, to incorporate public comments into its draŌ revised Housing Elements prior to submission to HCD. In a public comment leƩer dated September 28, 2023 commenƟng on the September draŌ of the revised 2023-2031, LGCA raised specific concerns regarding doublecounƟng of permiƩed units in both the 5th and 6th cycle. To substanƟate this concern, we submiƩed Table B from the 2022 Annual Element Progress Report along with a comment leƩer issued by HCD to ABAG dated January 12, 2022 which discussed this very point. Yet the Town ignored the LGCA comment and proceeded to submit the September draŌ to HCD on Monday October 2, 2023, the very next business day aŌer closing the 7-day public comment period on September 29th without disclosing why it chose to do so.

Then apparently the Town saw the light. In the November draŌ HE the Town revises the figures to eliminate the inappropriate double-counƟng of permiƩed units. Yet instead of crediƟng the changes to the comment leƩer provided by LGCA, the Town aƩributes the changes to, “further clarificaƟon from HCD,” that permiƩed units could not be double counted in both 5th and 6th cycle RHNA. We point this out to draw your aƩenƟon to the Town’s legal obligaƟon to consider and act, if appropriate, upon public comments when they are received. The fact that the Town ignored the LCGA comment and submiƩed the September draŌ double-counƟng permiƩed units in both the 5th and 6th cycle despite the overwhelming informaƟon provided to the Town that this was not allowed implies that the Town ignored EXHIBIT 7

Town of Los Gatos November 27, 2023 Page 2
Los Gatos Community Alliance
Facts Matter; Transparency Matters; Honesty Matters
www.lgca.town
the comments and filed the Housing Element revision without giving any consideraƟon to the public comments it received.

The fact that the Town submiƩed the most recent draŌ HE on November 17, and subsequently asked HCD to consider the submiƩal date to be November 27 appears to formalize the Town’s policy to ignore public comments. If permiƩed, it would also make it impossible for the Town to comply with HCD’s prior admonishment to, “summarize all public comments and describe how they were considered and incorporated into the element.” This comment, among others related to Public Comments, was included HCD’s comment leƩer of May 30, 2023.

On November 22 we requested of the Town’s aƩorney that the Town rescind its inappropriate submission of the November draŌ HE, and resubmit it to HCD only aŌer it receives and gives appropriate consideraƟon to these and any other public comments. As of this wriƟng, the Town has not responded to that request.

We also note that the Town’s posƟng of the revised Housing Element on November 17 did not include a copy of the transmiƩal leƩer that accompanied the submiƩal. As we know, HCD has asked that such transmiƩal leƩers include informaƟon regarding any public comments that have been received, as well as how the Town has considered and, if appropriate, incorporated such comments into the submiƩal. Of course it was not possible to include such informaƟon in the submiƩal of November 17 because the public comment period had not yet commenced.

In light of these facts, and by copy of these comments to HCD, we are requesƟng HCD to reject (or to require the Town of Los Gatos to rescind) the draŌ revised Housing Element the Town originally submiƩed to HCD on November 17, and further to direct the Town to give due consideraƟon to these comments and to any other comments it receives in the public comment period and to, “summarize all public comments and describe how they were considered and incorporated into the element,” before resubmiƫng the draŌ Housing Element to HCD.

With this background, LGCA is submiƫng this public comment leƩer regarding the November draŌ of the revised 2023-2031 Housing Element, even though such draŌ has previously – and inappropriately – been submiƩed to HCD in violaƟon of Govt Code secƟon 65585 (b) (1).

1. Table 10-3 incorrectly computes the RHNA “buffer” percentage and overstates % RHNA surplus Table 10-3 in the November draŌ shows a “% Surplus” which is meant to show the surplus or deficit as a percentage of units above the 6th cycle RHNA by income category. However, the percentage has been computed using a “Remaining RHNA” figure that reflects “credits” for projected ADU producƟon and pipeline projects neƩed against the RHNA. By using “Remaining RHNA” the “% Surplus” is materially overstated (24% vs 19%).

While at first glance this might seem like a minor error, it is important to note HCD has discussed the importance of having a sufficient “buffer” in percentage terms to ensure sufficient capacity exists in the Housing Element to accommodate shorƞall of sites to accommodate its remaining RHNA especially in very low- and low-income categories. This is discussed in Govt Code SecƟon 65863 – No Net Loss Law.

Town of Los Gatos November 27, 2023 Page 3
Los Gatos Community Alliance
Facts Matter; Transparency Matters; Honesty Matters
www.lgca.town
There is no reason to compute the % surplus using a “Remaining RHNA” figure except to mislead the reader into believing there is a larger surplus buffer percentage than actually exists.

This creates confusion regarding Program AS – Provide Adequate Sites for Housing, RHNA Rezoning, Lower Income Households on Nonvacant and Vacant Sites Previously IdenƟfied. This program calls for rezoning sites to accommodate a 25% buffer above RHNA (not “Remaining RHNA”) to allow for compliance with the No Net Loss Provisions of SB 166.

The following table shows the buffer percentages as presented in the Town’s draŌ revised November HE submission, as well as the corrected buffer percentages calculated using the appropriate RHNA figures:

As noted in this table, based on the proper calculaƟon, the total surplus buffer of 19% is less than the 25% goal outlined in program AS.

The Town should change the calculaƟon of the % Surplus to reflect the excess or deficit over the RHNA units by income category and properly reflect this throughout the Housing Element, including Table 10-3.

This will also make Los Gatos consistent with every other ABAG jurisdicƟon’s calculaƟon of a buffer percentage over RHNA.

2. Projected ADU Affordability is inappropriately opƟmisƟc On page D-60 of the November draŌ Housing Element it is disclosed that the income distribuƟon for projected ADU producƟon is assumed to be 30% very low, 30% low, 30% moderate and 10% above moderate income. This distribuƟon is overly opƟmisƟc with reference to the producƟon of very lowincome and is not supported by the Town’s actual experience of issued building permits for ADUs Very LowIncomeLowIncomeModerate
Income
AboveModerate
Income Total
Single-Family Units & Housing Projects 0 0 0 2 2
ADUs 0 3 11 9 23
Pipeline Projects 0 1 0 190 191
Projected ADUs 60 60 60 20 200
Total 60 64 71 221 416
RHNA 537 310 320 826 1,993
Remaining RHNA 477 246 249 605 1,577
HEOZ Sites 634 357 340 624 1,955
Owner Interest / Conceptual Development Plans 480 283 264 304 1,331 Additional Sites 154 74 76 320 624
Surplus above Remaining RHNA 157 111 91 19 378
% Surplus [vs "Remaining RHNA" as presented in
the Town's November 17 submission] 33% 45% 37% 3% 24%
% Surplus [corrected - vs RHNA] 29% 36% 28% 2% 19%

Town of Los Gatos November 27, 2023 Page 4
Los Gatos Community Alliance
Facts Matter; Transparency Matters; Honesty Matters
www.lgca.town
between the years 2020 to 2022. Over this Ɵme a total of 98 building permits were issued and none of them were for very low- or low-income units. This fact is not disclosed in the November draŌ.

If we include the 23 ADU units permiƩed from June 30, 2022 to January 31, 2023 there were zero very low-income units and 3 low-income units out of a total of 23 issued building permits. That would bring the total over the 3½ years to 121 ADUs permiƩed with zero being very low income and 3 low-income units for a total of less than 3%. In light of this history, it does not appear that the Town has adopted a reasonable assumpƟon that over the 6th cycle, 60% of projected ADU producƟon would be very low- or low-income units.

LGCA made this same comment on the September draŌ HE, which had the same ADU income distribuƟon assumpƟon. The Town’s reply was that the ADU income distribuƟon was based on guidance provided in the, “Using ADUs to SaƟsfy RHNA,” Technical memo provided by ABAG.

However, the technical memo cited by the Town was prepared to help jurisdicƟons jusƟfy the use of ADUs to help saƟsfy their RHNA requirements by income category. It was not a study of affordability levels of ADUs. ABAG, however, did complete a study of ADU affordability levels. It published draŌ results on September 8, 2021 in a technical assistance memo enƟtled, “Affordability of Accessory Dwelling Units.” We now refer to that study (copy aƩached). This study is highly relevant to establishing a projecƟon of ADU producƟon by affordability level.

The study included a specific recommendaƟon for income distribuƟon of ADUs for jurisdicƟons with fair housing concerns, which Los Gatos clearly has. This distribuƟon is 5% very low, 30% low, 50% moderate and 15% above. This distribuƟon more accurately reflects open market rentals, excluding units made available to family and friends, and has been adopted by other ABAG jurisdicƟons. This distribuƟon is further validated by data in the survey showing the following distribuƟon of ADU market rate units on the Peninsula: 6% very low, 31% low, 48% moderate and 15% above.

By overesƟmaƟng the producƟon of very low-income ADU units, the Town is inappropriately reducing its 6 th cycle RHNA requirement for this income category to a level not supported by the evidence. This is unfair to all other jurisdicƟons in ABAG with similar affordable housing concerns, such as the City of Los Altos, which adopted the more appropriate income distribuƟon assumpƟon. We hypothesize the Town used this more aggressive assumpƟon in order to reduce the amount of land required to be rezoned to achieve the Town’s 6th cycle very low income RHNA units. By our calculaƟon the Town would need to rezone approximately 10% more land if the study recommendaƟon had been adopted. This is fundamentally wrong and needs to be corrected.

AdopƟng the distribuƟon recommended for jurisdicƟons with affordable housing concerns would result in the number of projected ADU units shown in Table 10-3 being adjusted to 10 units for very low income, 60 units for low income, 100 units for moderate and 30 units for above moderate-income categories. More importantly the surplus above RHNA for very low-income units would be reduced to 107 units from 157, reducing the buffer over RHNA from 29% to 20%.

Town of Los Gatos November 27, 2023 Page 5
Los Gatos Community Alliance
Facts Matter; Transparency Matters; Honesty Matters
www.lgca.town
Combining the correcƟons from Item 1 above with these adjustments, Table 10-3 should be presented as follows:

3. SB 330 impact on development densiƟes should be added to SecƟon D. 4 – Appropriate Density/Default Density
SecƟon D. 4 discusses default density and development trends. The discussion is out of date and fails to fully disclose the number of SB 330 development applicaƟons that have been filed and the potenƟal impact on development densiƟes.

Since December 1, 2022 there have been 8 SB 330 pre-applicaƟons filed compared to none over the past 3 years. Two of the 8 applicaƟons (405 Alberto Way-52 units and 14859 Los Gatos Blvd-437 units) were final applicaƟons as of the date the November draŌ was submiƩed to HCD and a third (50 Los GatosSaratoga Road-158 units) will be finaled by January 4, 2024 before the January 31, 2024, statutory deadline for rezoning of parcels in the HEOZ. None of the remaining 5 SB 330 applicaƟons will be finaled by January 31, 2024. All three of the applicaƟons noted above are for parcels included in the Housing Element Site Inventory.

SB 330 applicaƟons which allow for the development of parcels at densiƟes below those anƟcipated in the Housing Element act as a constraint to housing development and an impediment to achieving its RHNA. None of the parcels noted above will be developed at the minimum development density of 30 DU/acre established by the HEOZ. Rather the parcels will be developed at densiƟes ranging from 17.9 DU/acre to 28.8 DU/acre.

As a result of the vested lower densiƟes, these three parcels will reduce the projected development units from the HEOZ from 1,955 to 1,842 units and the total net capacity will be reduced to 2,258 units which is RHNA of 1,993 units plus 265 units for a 13.3 percent buffer, not the 24 percent reported in Table 10-3.

Very LowIncomeLowIncomeModerate
Income
AboveModerate
Income Total
Single-Family Units & Housing Projects 0 0 0 2 2
ADUs 0 3 11 9 23
Pipeline Projects 0 1 0 190 191
Projected ADUs 10 60 100 30 200
Total 10 64 111 231 416
RHNA 537 310 320 826 1,993
Remaining RHNA 527 246 209 595 1,577
HEOZ Sites 634 357 340 624 1,955
Owner Interest / Conceptual Development Plans 480 283 264 304 1,331 Additional Sites 154 74 76 320 624
Surplus above RHNA 107 111 131 29 378
% Surplus above RHNA 20% 36% 41% 4% 19%

Town of Los Gatos November 27, 2023 Page 6
Los Gatos Community Alliance
Facts Matter; Transparency Matters; Honesty Matters
www.lgca.town
As a result, Programs AQ and AS will not accomplish the goal to accommodate the Town’s RHNA and a 25 percent buffer by the end of January 31, 2024.

4. No Net Loss Buffer of 33% for Very-Low-income category is wrong and does not comply with Govt Code SecƟon 65863 – No Net Loss Law
Recent changes to state law require jurisdicƟons to conƟnually maintain adequate capacity in their site inventories to always meet their RHNA by income category throughout the enƟre planning period. On page 10-32 the Housing Element discusses the need to maintain a HCD recommended buffer of 15 percent above RHNA to provide a “cushion” if a site is developed below the density projected in the Housing Element or at a different income than projected. This cushion provides the Town with addiƟonal sites available to accommodate the remaining balance of the RHNA. Table 10-3 reports a % Surplus of 33% for very-low-income units which we believe is incorrectly determined.

In our September 2023 comment leƩer, we raised concerns regarding the No Net Loss Law. The Town never responded to that leƩer. In the November draŌ submiƩed to HCD, the Town stated “the Town has received direcƟon from HCD that No Net Loss Law is only applicable once a project has been approved.

The preliminary and formal SB 330 applicaƟons that the Town has received have not been approved”.

The Town’s posiƟon is based on Govt Code SecƟon 65863 (c) (2) which does address the approval of a development project resulƟng in fewer units by income. However, Govt Code SecƟon 65863 (a) also requires the Town “shall ensure that its housing inventory” or “its housing element programs to make sites available” which “can accommodate at all Ɵmes throughout the planning period, its remaining unmet share of regional housing need”.

AdopƟng a site inventory, which is an administraƟve acƟon, that is known to be unable to accommodate the Town’s RHNA units for very low-income category because exisƟng regulatory condiƟons present a barrier to development violates this requirement. The Town intenƟonally ignores the impact of SB 330 applicaƟons on Program AQ and on sites included in the Housing Element site inventory. The Town fails to determine if SB 330 sites finaled before January 31, 2024, which are subject to vested development rights, are sufficient to provide for the Town’s share of RHNA need for all income levels.

We also direct you to the flow chart “No Net Loss Law Decision Flow Chart” in HCD’s No Net Loss comment leƩer dated October 2, 2019. The flow chart’s first step is to determine what type of acƟon is being considered. The second step is to determine if the locaƟon of the proposed development is included in the Housing Element site inventory. The third step is to determine “would approval of the proposed project result in a lower density than was assumed in the housing element or create a shorƞall of capacity to accommodate the RHNA by income group”.

Using this flowchart as our basis for analysis, it is clear the SB 330 applicaƟons for 14859 Los Gatos Blvd (437 units) and 50 Los Gatos-Saratoga Road (158 units) would result in a shorƞall of HEOZ capacity to accommodate the very low income RHNA category as explained in Program AS. Based on the SB 330 applicaƟons, 14859 Los Gatos Blvd would have 184 less very low income units and 50 Los Gatos-Saratoga Road would have 86 less very low income units than projected in the site inventory for a total “net loss” of 270 very low income units.

Town of Los Gatos November 27, 2023 Page 7
Los Gatos Community Alliance
Facts Matter; Transparency Matters; Honesty Matters
www.lgca.town
In comparing the 270 unit “net loss” for very low-income category and adjusƟng for the overstatement of ADU projecƟon for very low-income units discussed above, the site inventory does not have a 157-unit surplus or 33% buffer as shown in Table 10-3 but rather has a 163 units shorƞall of capacity for very lowincome category for a deficit of 30%. The “net loss” impact of SB 330 on the projected development of very low-income units is well known by Staff and was openly acknowledged by the Town’s Housing Element consultant at the most recent Planning Commission meeƟng held November 15, 2023.

The lack of sites to accommodate the Town’s RHNA represents a fundamental alteraƟon to the Town’s ability to meet Housing Element Law. To ensure that sufficient capacity exists in the Housing Element to accommodate the RHNA throughout the planning period, a much larger buffer than 15% of very lowincome sites needs to be created and more importantly the 30% deficit eliminated.

5. Programs I, N, P and AJ create an obligaƟon to provide financial assistance from the Town’s Affordable Housing Fund (BMP Programs funds) which has over the past three years realized less than $100,000 “in lieu fees” paid in.

The programs noted above create an obligaƟon for the Town to provide financial assistance, monetary subsidies, funding of home repairs and purchasing affordability covenants for the 6th cycle which the Town has not analyzed as to the financial viability of the programs. The only funding source for these programs is “in lieu fees” that the Town collects only if a developer elects to pay these fees in lieu of building affordable housing under the Town’s BMP program. In limited circumstances, the Town can solely determine payment. Over the past 3 years less than $100,000 has been paid into the Towns Affordable Housing Fund (BMP Program funds) and as of June 30, 2023 the Affordable Housing Fund had a balance $3.7m.

Without knowing whether these programs are financially viable, it is inappropriate for the Town to include these programs in the Housing Element. CreaƟng programs where it is unknown whether sufficient financial resources to implement the programs exist is a meaningless paper exercise and does not affirmaƟvely further fair housing in the Town.

This issue was raised in another resident comment leƩer dated September 29, 2023. The Town’s response that “BMP Housing in-lieu fees were allocated as directed by Town Council through the Town’s annual strategic prioriƟes” does not address the fundamental lack of income received from “in-lieu fees” to fund the financial obligaƟon created by the above-menƟoned programs. The financial viability of these programs must be fully analyzed before a commitment can be made.

Summary
Thank you for allowing us to provide our comments. At the end of the day, we all want the same outcome – a Housing Element that fully complies with State Housing Law and is cerƟfied by HCD as quickly as possible.

Los Gatos Community Alliance

DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT
1 DRAFT Affordability of Accessory Dwelling Units
DRAFT Affordability of Accessory Dwelling Units A report and recommendations for RHNA 6 Prepared by the ABAG Housing Technical Assistance Team with Funding from REAP 9/8/2021

1. Overview
Accessory dwelling units (ADUs) are independent homes on a residential property with their own cooking and sanitation facilities and outside access. They can either be part of or attached to the primary dwelling or can be free standing/detached from the primary dwelling. Given their smaller size, typically between 400-1000 square feet (Source: Implementing the Backyard Revolution), they frequently offer a housing option that is more affordable by design. They also offer infill development opportunities in existing neighborhoods and a potential supplemental income source for homeowners. Similar are Junior ADUs (JADUs), which are even smaller living units enclosed within a single-family structure. JADUs have independent cooking facilities and outside access, however they may share sanitation facilities with the primary home. Both have become an increasingly popular housing type in recent years.

Recent California legislation has facilitated policy changes at the local level that encourage ADU development by streamlining the permitting process and shortening approval timelines. State law requires jurisdictions to allow at least one ADU and JADU per residential lot. These legislative and policy changes have increased ADU development across many California communities.

In 2020, the Center for Community Innovation at the
University of California at Berkeley (UC Berkeley)
undertook a comprehensive, statewide survey of ADUs,
resulting in a document entitled “Implementing the
Backyard Revolution: Perspectives of California’s ADU
Homeowners”, released on April 22, 2021. This memo
uses and extends that research, providing a foundation
that Bay Area jurisdictions may build upon as they
consider ADU affordability levels while developing their Housing Element sites inventory analyses. This report’s affordability research has been reviewed by the
California Department of Housing and Community
Development (HCD). While they have not formally
accepted it, in initial conversations they did not raise objections to the conclusions. Give HCD’s workload, it is unlikely we will receive additional guidance.

Figure 1: Affordability of ADUs

DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT
2 DRAFT Affordability of Accessory Dwelling Units
Figure 1 presents a summary of ADU affordability and Table 1 presents a recommendation for assumptions for Housing Elements. See the main body of the report for more information on methodology and assumptions.

We are recommending a conservative interpretation that assumes more moderate and above moderate ADUs than the research found. These assumptions represent a floor for most jurisdictions. If the market conditions in a particular jurisdiction warrant higher assumptions, then additional analysis can be provided to HCD for consideration.

Table 1: Affordability Recommendations for ADUs for Housing Elements Income Recommendation
Very Low Income (0-50% AMI) 30%
Low Income (51-80% AMI) 30%
Moderate Income (81-120% AMI) 30%
Above Moderate Income (120+ AMI) 10%
Notes: AMI = Area Median Income. See below for more information on assumptions.

Affirmatively Furthering Fair Housing Concerns
Although ADUs are often affordable, jurisdictions should be cautious about relying on them too heavily because of fair housing concerns. Many ADUs are affordable to lower and moderate income households because they are rented to family and friends of the homeowners. If minorities are underrepresented among homeowners, the families and potentially friends of the homeowners will be primarily white. Therefore, relying too heavily on ADUs could inadvertently exacerbate patterns of segregation and exclusion. Additionally, ADUs often do not serve large families, another important fair housing concern. Conversely, ADUs accomplish an important fair housing goal by adding new homes in parts of the city that are more likely to be areas of opportunity.

Jurisdictions with fair housing concerns may want to use more conservative assumptions based on open market rentals, excluding units made available to family and friends, as summarized below:

Table 1: Affordability Recommendations for ADUs for Jurisdictions with Fair Housing Concerns Income Recommendation
Very Low Income 5%
Low Income 30%
Moderate Income 50%
Above Moderate Income 15%

DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT
3 DRAFT Affordability of Accessory Dwelling Units
Further Outreach and Data
Although HCD has reviewed this memo and believes the conclusions are generally accurate, it is still important for jurisdictions to ensure the information reflects local conditions. As part of ground truthing the conclusions, jurisdictions should provide opportunity for the stakeholders to comment on any assumptions, including affordability assumptions based on this memo.

2. UC Berkeley Survey
In the Fall and Winter of 2020, the University of California at Berkeley’s Center for Community Innovation, in collaboration with Baird + Driskell Community Planning, conducted a statewide survey of homeowners who had constructed ADUs in 2018 or 20191. Over 15,000 postcards were mailed to households directing them to an online survey. The overall response rate was approximately 5%, but Bay Area response rates were higher, up to 15% in some counties. In total, 387 ADU owners from the Bay Area completed they survey, with 245 of those units available on the long term rental market.

Key takeaways include:
• Just under 20% of Bay Area ADUs are made available at no cost to the tenant. • An additional 16% are rented to friends or family, presumably at a discounted rent, though the survey did not ask.
• Market-rate ADUs tend to rent at prices affordable to low and moderate income households in most markets.

3. Methodology
ABAG further analyzed the raw data from the UC Berkeley survey, because the authors of Implementing the Backyard Revolution did not present their results according to income categories (e.g. very low income, low income, etc.).

This ABAG summary uses the affordability calculator published by the California Department of Housing and Community Development (link) to define maximum income levels. HCD defines an affordable unit as one where a household pays 30 percent or less of their annual pre-tax income on housing.

The definition of affordable rents shifts with income category (Low, Very Low, etc.), household size/unit size, and geography. The income categories are as follows: Very Low = under 50% of Area Median Income (AMI), Low Income = 50-60% AMI, Moderate = 60-110% AMI.2 1 A summary is available here - http://www.aducalifornia.org/implementing-the-backyard-revolution/ 2 Please note, these assumptions are more conservative than is typically used, but match HCD’s recommendations.

DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT
4 DRAFT Affordability of Accessory Dwelling Units
Because some counties have different median incomes, the results are adjusted accordingly. 2020 AMIs were used because the survey was completed in 2020.

Additionally, ABAG made the following assumptions regarding persons per unit, which matched HCD’s recommendations:
• Studios 1 person
• 1 Bedrooms 2 people
• 2 Bedrooms 3 people
• 3 Bedrooms 4 people
See the following document for information on HCD’s assumptions. https://www.hcd.ca.gov/community-development/housing-element/docs/affordabilitycalculator-2020.xlsx

4. Summary of ADU Use
Table 2, below, shows the usage of ADUs. Because this report concerns affordability of available dwelling units, those not available for rent (short term rentals, home office and other) are excluded from further analysis.

Table 3. Usage of Accessory Dwelling Units
Region
Friend/
Family
Rental
Family -
No Rent
Long Term
Rental
(Open
Market)
Short
Term
Rental
Home
Office Other
East Bay 12% 19% 27% 2% 14% 27%
Peninsula 16% 18% 28% 4% 14% 20%
North Bay 13% 16% 33% 2% 8% 28%
Bay Total (9 Counties) 14% 18% 29% 3% 13% 24%
Statewide Total 16% 19% 30% 2% 12% 21%
Other includes homeowners who live in the ADU, needs repairs, empty, used as extra bedroom, etc. The response rate in San Francisco was too low for meaningful comparison so it is not presented separately, but is included in the Bay Area total. East Bay includes Alameda and Contra Costa Counties, Peninsula includes San Mateo and Santa Clara Counties, North Bay includes Marin, Sonoma and Napa Counties.

DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT
5 DRAFT Affordability of Accessory Dwelling Units

5. Affordability of ADUs
Rental Data
The analysis found that many ADUs are made available to family members, often at no rent.

The survey did not query the rent of family/friend rentals, only asking if rent was charged.

Of those ADUs available on the open market (not rented to family or friends), most charged rents between $1,200 and $2,200, as shown in in Figure 2.

Assigning ADUs to Income Categories
This report’s affordability analysis has two parts:

1. Market Rate ADUs: Those not rented to friends or family; and

2. Discount Rate ADUs: Those rented to family or friends for discounted or no rent Market Rate ADUs
Market rate ADUs were usually affordable to low or moderate income households, based on the methodology identified above. Depending on the part of the region, the ABAG analysis found:
• Very Low Income: 0-7% of market rate units were affordable to very low income • Low Income: 15-44% of market rate units were affordable to low income • Moderate income: 40-70% of market rate units were affordable to moderate income households.
• Above moderate: 9-15% of market rate units were affordable to above moderate income households.
10%
31%
25%
15%
8% 10%
0%
5%
10%
15%
20%
25%
30%
35%
$700 - $1200 $1201 - $1700 $1701 - $2200 $2201 - $2700 $2701 - $3200 $3200+ Figure 2. Average Monthly Rent

DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT
6 DRAFT Affordability of Accessory Dwelling Units
The data is summarized in the chart below.

Table 4. Affordability of Market Rate Units
Very Low Low Moderate Above Moderate
East Bay 0% 15% 70% 15%
Peninsula 6% 31% 48% 15%
North Bay 7% 44% 40% 9%
This chart only shows ADUs rented on the open market. The response rate in San Francisco was too low for meaningful comparison so it is excluded from this analysis.

Discount Rate ADUs
Based on previous HCD precedent, this analysis uses actual rents to determine affordability.

The occupant’s relationship to the owner is secondary, the relevant factor is the rent charged. (Please note the potential fair housing concerns that can arise from this approach). Specifically, this analysis assigns units made available to family or friends available at no rent as very low income. Additionally, this analysis assigns units rented to family or friends as low income3.

Combined Market and Affordable ADUs
Table 5, below, combines the information for discounted and market rate ADUs.

The response rate in San Francisco was too low for meaningful comparison so it is not presented separately, but is included in the Bay Area total.
3 The survey did not ask the rent of units that were rented to family members.

Table 5. Usage of No Rent/Discount Rent ADUs and Affordability - Combined Region
Friend/
Family
Rental
Family -
No Rent
Very Low
Income
Rents
Low Income
Rents
Moderate
Income
Rents
Above Mod.

Income
Rents
East Bay 20% 33% 0% 7% 33% 7%
Peninsula 24% 28% 3% 15% 23% 7%
North Bay 20% 25% 4% 24% 22% 5%
Bay Total (9
Counties) 22% 28% 2% 14% 26% 7%
State-Wide Total 24% 28% 1% 9% 23% 14%

DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT
7 DRAFT Affordability of Accessory Dwelling Units
Assigning the family/friends ADUs to income categories produces the following results:

This chart combines ADUs made available for free with Very Low Income and ADUs available for a discount with the Low Income category. The response rate in San Francisco was too low for meaningful comparison so it is not presented as its own line, but is included in the SF Bay Are Total.

Figure 2 shows affordability levels for the region. It is a graphical representation of the Bay Area as a whole.

Table 6. Affordability Including Family/Friends Rentals Region
Very Low
Income
Rents
Low
Income
Rents
Moderate
Income
Rents
Above Mod.

Income
Rents
East Bay 33% 27% 33% 7%
Peninsula 31% 39% 23% 7%
North Bay 29% 44% 22% 5%
Bay Total (9 Counties) 30% 36% 26% 7%
Statewide Total 29% 33% 23% 14%
Figure 2: Results shown for 9-county Bay Area. “Very low” rents include units available to family or friends at no cost. “Low” rents include discounted family rentals.

DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT
8 DRAFT Affordability of Accessory Dwelling Units

6. Additional Research and Considerations
In general, ADUs are affordable for several reasons:
• Many units are available for no or low cost rent to family members or friends.

Additionally, a smaller number of owners intentionally rent their ADUs below market because they believe affordable housing is important. Source: Implementing the Backyard Revolution
• ADUs tend to be fewer square feet than units in apartment buildings after controlling for bedroom size, which results in lower prices. Source: Wegmann & Chapple (2012) • ADU owners tend to prefer their choice of tenant versus maximizing rent. Additionally, they will often not significantly raise rents once they have a tenant they like. Source:

Baird + Driskell homeowner focus groups.
• ADU owners often do not know the value of their unit so they may underprice it unintentionally. Source: Baird + Driskell homeowner focus groups.

A number of other studies have found that many ADUs are used as housing for friends or family for free or very low cost, consistent with the UC Berkeley Report. A selection of these are outlined below:
• A 2012 UC Berkeley publication entitled “Scaling up Secondary Unit Production in the East Bay” indicates that approximately half of all secondary dwelling units are available for no rent.
4 • A 2018 report entitled “Jumpstarting the market for ADUs” surveyed ADUs in Portland, Seattle, and Vancouver and found that approximately 17% of ADUs were occupied by a friend or family member for free.5
• A 2014 analysis entitled “Accessory dwelling units in Portland, Oregon: evaluation and interpretation of a survey of ADU owners” found that “18% of Portland ADUs are occupied for free or extremely low cost.”6

7. Notes
This report was funded by the Regional Early Action Grant, which the state legislature provided to ABAG and other council of governments. Analysis was conducted by Baird + Driskell Community Planning.

Please contact Josh Abrams, [email protected] for more information. 4 https://communityinnovation.berkeley.edu/sites/default/files/scaling_up_secondary_unit_production_in_the_ea st_bay.pdf?width=1200&height=800&iframe=true
5 http://ternercenter.berkeley.edu/uploads/ADU_report_4.18.pdf 6 https://accessorydwellings.files.wordpress.com/2014/06/adusurveyinterpret.pdf

This Page
Intentionally
Left Blank

TOWN OF LOS GATOS

COMMUNITY DEVELOPMENT DEPARTMENT

PLANNING DIVISION
(408) 354-6872 Fax (408) 354-7593
[email protected]
Page | 1

CIVIC CENTER
110 E. MAIN STREET
LOS GATOS, CA 95030
November 28, 2023
Paul McDougall
State Department of Housing and Community Development
C/O Land Use and Planning Unit
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
Re: Town of Los Gatos Draft Revised 2023-2031 Housing Element Dear Mr. McDougall,
This letter serves to transmit a formal resubmittal of the Town of Los Gatos’ Draft Revised 2023-2031 Housing Element, implementing changes in response to comments in the Draft Preliminary Review Matrix provided by Jose Jauregui.

Draft Revisions
This Draft Revised Housing Element (dated November 2023) responds to the Draft Preliminary Review Matrix provided by HCD on November 7, 2023. The Town has made several modifications to the Housing Element, detailed in the “Staff Response” column of the attached Draft Preliminary Review Matrix with Responses. Included in this formal resubmittal are the following documents:
• The Town’s response memorandum to HCD’s November 7, 2023, Draft Preliminary Review Matrix; • The Draft Revised Housing Element showing the track changes of the October 2, 2023, draft, as well as the additional changes, in response to the November 7, 2023, matrix which are highlighted in yellow;
• A clean copy of the Draft Revised Housing Element;
• An electronic copy of the Sites Inventory Form; and
• Written comments submitted to the Town during the seven-day public review period, November 16, 2023, through November 27, 2023.

Housing Sites Inventory
The sites, calculated at their net, minimum density, in addition to Accessory Dwelling Unit Projections, Pipeline Projects, and RHNA credits for housing units that have been approved, permitted, or received a certificate of occupancy since the beginning of the RHNA projected period have a total, net capacity of 2,371 units. This inventory accommodates a surplus of approximately 24 percent above the Town’s RHNA of 1,993 housing units.

Public Review
Pursuant to Government Code 65585(b)(1), the Town has posted the modifications to the Town’s Housing Element website and provided notification to all individuals and organizations that previously EXHIBIT 8

Page | 2
requested notices, as well as all parties on the Town’s notification list, including those who have previously commented on the Housing Element. The Draft Revised Housing Element was posted on November 16, 2023, more than seven days prior to submittal of the Draft Revised Housing Element to HCD for review, consistent with AB 215 requirements.

Compliance with Government Code Section 65585:

The Town received correspondence from the Los Gatos Community Alliance (“LGCA”) pointing out that the Town had submitted proposed revisions to HCD prior to the close of the seven-day public comment period. Town staff did provide HCD, via email, with an informal internal submittal of the Draft Revised Housing Element (November 2023), noting that the seven-day public review would end on November 27, 2023. Upon receipt of the LGCA’s letter and further review of Government Code Section 65585(b), the Town’s Community Development Director contacted HCD to ask that the Town’s submittal be deemed submitted at the end of the day on November 27th. This letter constitutes a formal resubmittal of the Draft Revised Housing Element (November 2023), following the seven-day public comment period.

In addition, the responses below have been provided addressing the public comments received during the seven-day public comment period.

Response to Public Comments Received During the Seven-Day Public Comment Period:

During the seven-day public comment period, November 16, 2023, through November 27, 2023, the Town received one public comment letter from the Los Gatos Community Alliance (“LGCA”). The following provides a response to each public comment submitted and includes how the comments were incorporated into the review, if appropriate.
1) LGCA Comment #1, Table 10-3: The method for calculating the percentage of the surplus is consistent with other Santa Clara County jurisdictions who have received certification of their Housing Element. Additionally, this method has been utilized by the Town’s Housing Element consultant with approximately 40 jurisdictions who have received certification of their Housing Element. The buffer of 25 percent, as identified in Implementation Program AS is a reflection of the March 2023 version of the Draft Revised Housing Element and could be revised to reflect the November 2023 version of the Draft Revised Housing Element, which provides a 24 percent buffer. 2) LGCA Comment #2, Projected ADU Affordability: The income and affordability distribution of ADU’s in the Housing Element was based on a technical memorandum prepared by the Association of Bay Area Governments (ABAG), titled ‘Using ADU’s to Satisfy RHNA Technical Memo.’ The ABAG information provided by the LGCA was a draft version. The Town is utilizing the recommended percentages, provided in the final version of the ABAG technical memorandum. 3) LGCA Comment #3, SB 330 Impact: The Town has received direction from HCD that No Net Loss law is only applicable once a project has been approved. The preliminary and formal SB 330 applications that the Town has received have not been approved. If and when a formal application is submitted and the project is approved that will trigger the “no net loss” requirements, and the Town will comply with the “no net loss” requirements.
4) LGCA Comment #4, No Net Loss Buffer: As discussed in the response to comment #3, the Town has received direction from HCD that No Net Loss law is only applicable once a project has been

Page | 3
approved. The preliminary and formal SB 330 applications that the Town has received have not been approved. If and when a formal application is submitted and the project is approved that will trigger the “no net loss” requirements, and the Town will comply with the “no net loss” requirements.
5) LGCA Comment #5, Program References to Town’s Affordable Housing In Lieu Fund: The Below Market Price (BMP) housing in-lieu fees must be used for affordable housing purposes and are allocated as directed by the Town Council as part of the budgeting process. Every year the Town Council identifies their strategic priorities as an initial step in the budget development process. The Town Council has made affordable housing partnerships a 2023-2025 Strategic Priority.

The public comments provided during the seven-day public comment period above were considered and it was determined that no revisions were required to the Draft Revised 2023-2031 Housing Element (November 2023).

On behalf of the Town of Los Gatos, thank you for the review of the Town of Los Gatos’ Draft Revised Housing Element. The Town looks forward to receiving HCD’s findings/comment letter on December 1, 2023, and potentially receiving additional direction and feedback from HCD that would assist the Town in the evaluation and decision-making process to bring the Housing Element into a compliance status by or before the end of the 60-day review period. Questions or comments on the Housing Element may be directed to:

Joel Paulson, Community Development Director
[email protected]
408-354-6879
Sincerely,
Joel Paulson
Community Development Department
Town of Los Gatos
Enclosures:
• Response Memorandum to HCD’s November 7, 2023, Draft Preliminary Review Matrix • Town of Los Gatos Draft Revised Housing Element with track changes • Town of Los Gatos Draft Revised Housing Element clean copy • Electronic Copy of the Sites Inventory Form
• Written comments submitted to the Town during the seven-day public review period, November 16, 2023, through November 27, 2023

This Page
Intentionally
Left Blank

From: Rick Van Hoesen
Sent: Tuesday, November 21, 2023 10:17 PM
To: Gabrielle Whelan <[email protected]>
Cc: ; Laurel Prevetti <[email protected]>; Joel Paulson <[email protected]>; Wendy Wood <[email protected]>; [email protected]; [email protected]; Phil Koen < >; Maria Ristow
<[email protected]>; Mary Badame <[email protected]>; Matthew Hudes <[email protected]>; Rob Moore <[email protected]>; Rob Rennie <[email protected]>
Subject: Re: Town of Los Gatos Housing Element
Dear Ms. Whelan,
Yes, agreed. We do need to be talking about the same thing. If the "proposed revisions" you refer to are the documents that were filed with HCD on November 16, then we are talking about the same thing.

However, your assertion that, "This was not the Town’s submittal of a revised draft Housing Element," rings hollow. In fact the footer on every page of the submittal says, "HCD Draft Revised 2023-2031 Housing Element." Further, the HCD website is clear that there are only four types of submittals:

1. First draft submittals

2. Draft revised submittals

3. Draft adopted submittals

4. Adopted Housing Elements
These are set forth on HCD's website at: https://www.hcd.ca.gov/planning-and-communitydevelopment/housing-elements under the Housing Element Submittal topic.

It seems clear that the Town's November 16 submittal was a Draft revised submittal. Accordingly, the documents submitted were subject to the public comment period, as made clear on the same web page, "any revisions received during the course of HCD's review are also subject to the seven-day posting requirement prior to submittal to HCD" (emphasis added).

The requirement to conduct the seven-day public comment period prior to submittal is essential to the public comment process. It is the only way for the public to comment on the document and, if appropriate, for the Town to incorporate such comments into the document prior to its submission to HCD. The intent of the public comment period is not (only) to provide the public's comments to HCD, but also for those comments to be provided to the Town for possible revisions to the document before it is submitted to HCD. The course of action adopted thus far by the Town to, "ask HCD to consider the date of submittal to be November 27th," makes a sham of the public comment process. In essence it presupposes that the document will not be changed as the result of any public comments because the already-submitted document would automatically be re-submitted on the same day the public comment period ends.

EXHIBIT 9

Accordingly, we again request that the Town notify HCD it is rescinding the November 16 submittal and (presumably) that the Town intends to make a submittal after the public comment period has lapsed and the Town has had an opportunity to receive and consider any public comments and, if appropriate, to incorporate public feedback into the draft HE. At a minimum, this will enable the Town to include any public comments along with the submittal at the time it is submitted.

We understand that the Town is behind where it wants to be with respect adopting its new Housing Element. That unfortunate result was set in motion many months ago when the Town Staff elected to focus their efforts on a new General Plan before a Housing Element was formulated, much less adopted.

But shortcutting the process in pursuit of a quick result cannot trump the laws and regulations that govern the process.

Also, in our LGCA letter two days ago to Ms. Prevetti (the letter you responded to) we asked that a copy of the cover letter accompanying the November 16 submittal be provided. We still have not received that letter. I have since filed a public records request with the Town requesting that letter, but would appreciate it if you could provide it as soon as possible.

Finally, the claim that, “Staff had not drafted the revisions at the time of the 11/15 Planning Commission meeting,” strains credulity – at least as formulated. The sheer number and bulk of redlines in the draft that was submitted to HCD the day after the Planning Commission meeting simply would not have been possible to draft in less than 24 hours. Might it be more accurate to say that Staff had not finalized the drafting of the revisions at the time of the Planning Commission meeting? Either way, the question remains as to why it was not disclosed to the PC – and the public – at that meeting that a submittal was to be made the very next day.

Thank you.

Rick Van Hoesen, for Los Gatos Community Alliance

On Tue, Nov 21, 2023, at 3:08 PM Gabrielle Whelan <[email protected]> wrote:

Hello, Mr. Van Hoesen.

1. I want to make sure we are talking about the same thing. The Town gave proposed revisions to its HCD reviewer for his consideration in response to mid-review cycle comments he provided regarding the Town’s 10/2 submittal. This was not the Town’s submittal of a revised draft Housing Element. The proposed revisions were submitted to HCD to get HCD’s feedback on whether HCD would be prepared to certify a revised draft Housing Element if it were adopted with those edits and then submitted to HCD for certification. Public comments will still be provided to HCD and taken at both the upcoming Planning Commission and Town Council meetings. The Planning Commission meeting is scheduled for 11/29 and the Town Council meeting has not yet been scheduled. Only after the Town Council has received a recommendation from the Planning Commission and held its public hearing will a revised draft Housing Element be adopted and submitted to HCD for certification.

2. Originally, HCD stated that they would not be able to provide the Town with mid-review cycle comments on the 10/2 submission. On October 31st (correction: not November 7th as indicated in my original email below), the Town’s HCD reviewer told the Town that he would be able to meet with Town staff to provide mid-review cycle comments and scheduled a meeting for 11/7 (correction: not 11/14 indicated in my original email below). The 11/15 Planning Commission was noticed before the Town knew that HCD would in fact be able to meet with the Town to provide mid-review cycle comments. As a result, the 11/15 Planning Commission meeting was used to discuss the mid-review cycle comments from HCD and the Planning Commission continued its meeting to 11/29. Staff had not drafted the revisions at the time of the 11/15 Planning Commission meeting so the matrix that was provided stated that the revisions were in progress. The proposed revisions were completed and posted on 11/16 (correction: not 11/17 as indicated in my original email below).

3. The purpose of the proposed schedule is intended to obtain HCD certification of an amended Housing Element as soon as possible. State law requires that the Planning Commission make a recommendation to the Town Council on adoption. November 29th is the last date on which the Planning Commission can make a recommendation and staff can notice a Town Council meeting in 2023. If the Planning Commission makes its recommendation after December 1st, the Town Council will vote on the Housing Element mid-January. With the proposed schedule, the Town Council will have the benefit of HCD’s 12/1 letter prior to adoption.

Please let me know if you have other questions or would like to meet. Thank you.

CONFIDENTIAL/ATTORNEY-CLIENT PRIVILEGED
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: Rick Van Hoesen
Sent: Monday, November 20, 2023 4:38 PM
To: Gabrielle Whelan <[email protected]>
Cc: ; Laurel Prevetti <[email protected]>; Joel Paulson <[email protected]>; Wendy Wood <[email protected]>; [email protected]; [email protected]; Phil Koen ; Maria Ristow
<[email protected]>; Mary Badame <[email protected]>; Matthew Hudes <[email protected]>; Rob Moore <[email protected]>; Rob Rennie <[email protected]>
Subject: Re: Town of Los Gatos Housing Element
Hello Ms. Whelan,
Thank you for your reply.

Yes, the Los Gatos Community Association (LGCA) does have several questions (more may follow).

1. As we know, an important purpose of the public comment period is to provide the public with advance notice of the proposed draft housing element and to give the public the ability to provide comments on the proposed filing. Equally importantly, the public comment process gives the Town the opportunity to consider and, when appropriate, to incorporate those comments into its Housing Element before the HE is filed with HCD. As a community organization planning to make comments on the draft Housing Element, LGCA is greatly concerned that there is no process for such comments to be considered by the Town and incorporated into the draft. It creates the impression that the public comment process is for appearances only, and is simply being given lip service by the Town in an attempt to technically satisfy the public comment period without actually considering or incorporating any resulting comments. Therefore would you please describe how the process you have outlined (changing the date of submittal for the already-submitted revised Housing Element draft to November 27) provides the ability for Town to receive and consider public comments and then, when appropriate, incorporate any changes resulting from those comments into the draft submittal?

2. While we did not actually ask the second question you posit (namely, why were the most recent HE revisions not taken to the HEAB), we nonetheless wonder how the sequence of events occurred on November 15 and 16. The Planning Commission met on November 15 with the agenda item, "Consider and Make a Recommendation to the Town Council on the Draft Revised 2023-2031 Housing Element." During that meeting it appears that there was discussion of the, "mid-review cycle recommendations from HCD that were received on November 14th." And yet to all outward appearances the Planning Commission was not aware of (and in any event did not publicly discuss) the draft Housing Element that the Town staff was to submit the very next day - at least in part in response to those same "mid-review cycle recommendations." Why was the Planning Commission (and the public) not made aware at that meeting that the very next day a draft Housing Element was to be filed by Town Staff in response to the HCD mid-cycle recommendations that were discussed at that meeting?

3. Of course it is known by the Town that HCD is to provide its comment letter on the September draft Housing Element on or before December 1. Knowing that, why would the Town propose to submit yet another draft HE on November 27, just 4 days before the latest date it is to receive HCD's comments? Further, why would the Planning Commission propose to make a

recommendation to the Town Council on November 29, just 2 days before that date? Why not wait to receive HCD's letter on or before December 1 and make all the recommendations and submittals with full knowledge of HCD's latest comments? Thank you.

Rick Van Hoesen & Jak Van Nada

On Mon, Nov 20, 2023 at 3:13 PM Gabrielle Whelan <[email protected]> wrote:

Dear Mr. Van Hoesen and Mr. Van Nada:

Thank you for your November 19th letter regarding the revised draft Housing Element. I have reviewed Government Code Section 65585(b) and it does provide that a seven-day public review period is required before a draft revision to the Housing Element is sent to HCD. Accordingly, Town staff will be contacting HCD to ask HCD to consider the date of submittal to be November 27th rather than November 17th. This will provide the public with an opportunity to provide written comment for a seven-day period plus a buffer for the Thanksgiving holiday. Town staff will also update the Town’s Housing Element web page with this information. As you may know, the draft revised Housing Element will be coming to the Planning Commission for consideration on November 29th. At that meeting, staff will be asking the Planning Commission to make a recommendation regarding adoption of the revised draft Housing Element.

You also asked why the most recent revisions made in response to HCD’s mid-review cycle comments were not taken to the Housing Element Advisory Board (“HEAB”) for a recommendation to the Planning Commission. The HEAB did review previous drafts of the Housing Element. Most recently, the HEAB made a recommendation to the Planning Commission and Town Council before the Town’s October 2nd submittal to HCD. The November proposed revisions were made in response to mid-review cycle recommendations from HCD that were received on November 14th. Given the interest in adopting, and obtaining certification of, the revised draft Housing Element in a timely manner, it is not practical to return to the HEAB every time revisions are proposed.

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

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: 11/29/2023
ITEM NO: 1

DESK ITEM
DATE: November 29, 2023
TO: Planning Commission
FROM: Joel Paulson, Community Development Director
SUBJECT: Consider and Make a Recommendation to the Town Council on the Draft Revised 2023-2031 Housing Element. Location: Town-Wide. General Plan Amendment Application GP-22-003.

REMARKS:

Exhibit 10 includes the Response Memorandum to HCD’s November 7, 2023, Draft Preliminary Review Matrix, dated November 16, 2023. This document was provided to the Planning Commission on November 16, 2023, and published online as part seven-day public review period that was from November 16, 2023, to November 27, 2023. This document was also included in the November 28, 2023, resubmittal of the Draft Revised 2023-2031 Housing Element (November 2023) to the California Department of Housing and Community Development (HCD).

Exhibit 11 includes a copy of the ABAG “Using ADUs to Satisfy RHNA” Technical Memo, dated March 10, 2022. The income and affordability distribution of ADU’s in the Housing Element was based on this technical memorandum. The ABAG information provided by the Los Gatos Community Alliance was a draft version. The Town is utilizing the recommended percentages provided in the final version of the ABAG technical memorandum.

Exhibit 12 includes public comment received between 11:01 a.m., Tuesday, November 28, 2023, and 11:00 a.m., Wednesday, November 29, 2023.

ATTACHMENT 9

PAGE 2 OF 2
SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: November 29, 2023
EXHIBITS:

Previously received (available online at: www.losgatosca.gov/HousingElement):

1. Environmental Analysis

2. Draft Revised 2023-2031 Housing Element (November 2023)

3. Response Memorandum to the HCD Draft Preliminary Review Matrix Previously received with the November 29, 2023, Staff Report:

4. Public Comment received between 11:01 a.m., Wednesday, November 15, 2023, and 11:00 a.m., Wednesday, November 22, 2023
Previously received with the November 28, 2023, Addendum Report:

5. Substantial Compliance with Housing Element Law (Government Code Title 7, Division 1, Chapter 3, Article 10.6 [65580–65589.11)

6. Draft Resolution for Adoption of the Draft Revised Housing Element (November 2023)

7. Public Comments Received During the Seven-Day Review Period

8. HCD Cover Letter

9. Public Comment Received on November 21, 2023
Received with this Desk Item Report:

10. Response Memorandum to HCD’s November 7, 2023, Draft Preliminary Review Matrix, dated November 16, 2023

11. ABAG “Using ADUs to Satisfy RHNA” Technical Memo, March 10, 2022

12. Public Comment received between 11:01 a.m., Tuesday, November 28, 2023, and 11:00 a.m., Wednesday, November 29, 2023

Town of Los Gatos Response to HCD Comment Letter: Page 1 November 16, 2023
Draft Preliminary Review Matrix on the Draft Revised
Housing Element, as submitted to HCD on October 2, 2023 Received November 7, 2023, with Staff Responses as of November 16, 2023 Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
Affirmatively Furthering Fair Housing
Regional Level Patterns and Trends: The element
includes some data and analysis regarding different
patterns for various socio-economic characteristics
(race and income). However, a complete analysis
should analyze this data for patterns and trends at
the regional level, comparing the locality to the
broader region, including integration and
segregation (race, income, disability, and familial
status), disparities in access to opportunity
(education, environmental, transportation,
economic), and disproportionate housing needs
(cost burdened, overcrowded, substandard housing
conditions, homelessness, and displacement risks).

Please see HCD's January 12, 2023 review for
additional information.

HCD Prior Review: 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
A35 Y~ Should be some discussion of
trends whether it’s at an
aggregate level with maps and
data tables.

Additional maps and data of the population by
protected class at a local and regional level
comparison was provided starting on page A-35
through page A-62 of the Draft Revised Housing
Element (September 2023) track change version.

Additional maps and data related to disparities
in access to opportunity at a local and regional
level comparison was provided starting on page
A-68 through A-100 of the Draft Revised Housing
Element (September 2023) track change version.

Additional data and maps related to
disproportionate housing needs at a local and
regional level comparison was provided starting
on page A-101 through A-159 of the Draft
Revised Housing Element (September 2023)
track change version.

Additional analysis in yellow highlight was
provided on pages A-35 through A-36, A-43
through A-44, A-47, A-60, A-64, A-74 through A75, and A-91 of the Draft Revised Housing Element (November 2023) track change version.

EXHIBIT 10

Town of Los Gatos Response to HCD Comment Letter: Page 2 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
incorporate local data and knowledge and other
relevant factors (See below).

Income and Racial Concentration of Affluence
(RCAA): The element states that a RCAA does not
exist; however, the Town is predominantly a high
resource category according to TCAC/HCD
Opportunity Maps and is predominantly higher
income. These patterns differ from the surrounding
region and the element should include specific
analysis of the Town compared to the region and
should formulate policies and programs to promote
an inclusive community. For example, the Town
should consider additional actions (not limited to
the Regional Housing Needs Allocation (RHNA)) to
promote housing mobility and improve new housing
opportunities throughout the Town.

A63
A150
No The element now includes
actions to promote an
inclusive community;
however, the element must
provide 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. Please see
Los Altos Hills as examples.

Additional analysis, data, and maps describing
that all census tracts in the Town are considered
to be Racially Concentrated Areas of Affluence
(RCAA) was provided on page A-65 through A-67
and page A-151 through A-152 of the Draft
Revised Housing Element (September 2023)
track change version.

Additional analysis in yellow highlight was
provided on page A-69 of the Draft Revised
Housing Element (November 2023) track change
version.

Disparities in Access to Opportunity: While the
element was revised to include the distances
between public schools for each site to a public
transit line, it must also evaluate and compare
concentrations of protected groups with access to
transportation options. In addition, it must also
analyze any disproportionate transportation needs
for members of protected classes.

A76
A89
Yes
Identified Sites and Affirmatively Furthering Fair
Housing (AFFH): While the element was revised with
brief conclusions that identified sites do not
exacerbate fair housing conditions, it must also
A144
- 163
Yes

Town of Los Gatos Response to HCD Comment Letter: Page 3 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
quantify the number of units by income group and
location then evaluate the impact on socioeconomic concentrations. Please see HCD's January 12, 2023 review for additional information.

HCD Prior: 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, Knowledge and Other Relevant Factors:

The element included some information about
regional history, referenced stakeholder comments
and discussed the location of assisted projects and
housing choice vouchers. However, the element
needs to provide information and analysis that
relates, supports, or supplements the existing
analysis, fair housing conclusions, or contributing
factors. The element must consider other relevant
factors that have contributed to certain fair housing
conditions. This analysis must consider information
that is unique to the Town or region; such as
governmental and nongovernmental actions;
historical land use and zoning practices (e.g., past
redlining/Greenlining, restrictive covenants,
planning documents, etc.); disparities in investment
A4
A14
No~ The city can utilize staff
knowledge and reach out to
service providers for local
data.

Local knowledge and history were added on
page A-14 through A-15 of the Draft Revised
Housing Element (September 2023) track change
version.

Additional information in yellow highlight was
provided on page A-19 of the Draft Revised
Housing Element (November 2023) track change
version.

Town of Los Gatos Response to HCD Comment Letter: Page 4 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
to specific communities including transportation
investments; seeking investment or lack thereof to
promote affordability and inclusion; local initiatives, or other information that may have impeded
housing choices and mobility.

Contributing Factors to Fair Housing Issues: The
element identifies contributing factors to fair
housing issues. However, these issues and goals do
not appear adequate to facilitate the formulation of
meaningful actions to AFFH. The element should reassess contributing factors upon completion of analysis and make revisions as appropriate. In
addition, the element must prioritize these factors
to better formulate policies and programs and carry
out meaningful actions to AFFH.

A16 TBD Dependent upon complete
analysis.

Analysis of the Town’s contributing factors with
a priority rating were added on page A-16
through A-19 of the Draft Revised Housing
Element (September 2023) track change version.

Additional analysis in yellow highlight was
provided on pages A-17 through A-19 of the
Draft Revised Housing Element (November 2023)
track change version.

Housing Needs Assessment
Housing Conditions: The element discusses code
enforcement violations; however, it must also
provide a Town-wide estimate of the number of
units in need of rehabilitation and replacement.

B25 Yes
Special Housing Needs: The element was not revised
to address this finding. Please see HCD's January 12,
2023 review for additional information.

HCD Prior Review: 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
B40+
C57
~ Commercial Industrial (LM)
will permit ES by right;
however, program should go
beyond reviewing town code
and make amendments as
necessary to align with all
state requirements.

Analysis of the Town’s compliance with
Assembly Bill 2339 for emergency shelters was
added on page C-57 of the Draft Revised
Housing Element (September 2023) track change
version.

Program AP of the Draft Revised Housing
Element (September 2023) includes
Implementation Program AP which outlines
amendments to the Town Code to better
facilitate the provision of a variety of housing
types, prioritize special needs housing by
allowing for reduced processing times and

Town of Los Gatos Response to HCD Comment Letter: Page 5 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
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.
streamlined procedures, and include
preferential handling of special needs
populations in management plans and
regulatory agreements of funded projects.

Added language in yellow highlight was provided
on pages 10-64 and 10-65 for Implementation
Program AP of the Draft Revised Housing
Element (November 2023) track change version.

Sites Inventory, Analysis and Adequate Sites
Realistic Capacity: While the element now clarifies
that minimum densities are utilized toward the
calculation of realistic capacity; it must still address HCD’s prior finding regarding the likelihood for 100
percent nonresidential development in zones
allowing 100 percent nonresidential uses. Please see
HCDs prior review for additional information.

HCD Prior Review: 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.

D2-
D5
D13
No Program BH must clarify by
right definition for reuse sites.

Program AS of the Draft Revised Housing
Element (September 2023) identifies the reuse
sites included in the 6th cycle Housing Element.

Clarifying language in yellow highlight was
provided on pages 10-68 and 10-69 for
Implementation Program AS of the Draft Revised
Housing Element (November 2023) track change
version.

Nonvacant Sites: The element was not revised to
address this finding. Please see HCD's January 12,
2023 review for additional information.

D5 Yes~ Utilizes factors: ILV, FAR, Age
(40 years), # of stories.

A nonvacant capacity analysis was provided on
page D-5 through D-13 of the Draft Revised
Housing Element (September 2023) track change
version. The characteristics of existing uses

Town of Los Gatos Response to HCD Comment Letter: Page 6 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
In addition, specific analysis and 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. (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.

HCD Prior Review: 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
(age, floor area ratio, improvement-to-land
value, single vs. multi-story), and whether such
characteristics are conducive to future
redevelopment were all included in the analysis.

Clarifying language in yellow highlight was
provided on page D-5 of the Draft Revised
Housing Element (November 2023) track change
version related to the nonvacant capacity
analysis.

Town of Los Gatos Response to HCD Comment Letter: Page 7 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
standards to encourage additional residential
development on these sites.

Small Sites: The element was not revised to address
this finding. Please see HCD's January 12, 2023
review for additional information.

HCD Prior Review: 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 lower-income
households, including programs as appropriate.
?
Elec.

SI
No No revisions made? The income distribution for sites D-3, D-4, and D7 were modified as part of Appendix H to place all housing units in the above moderate-income
category since each parcel is less than half an
acre and deemed inadequate to accommodate
housing for lower-income housing.

Sites B-1, C-2, D-1, and D-5 are each composed
of multiple parcels. The parcels that are less
than half an acre in size within each site are
identified below in underlined text; however,
since they are owned by the same property
owner, they have been consolidated in the Sites
Inventory based on anticipated future
development as one, merged site.
 Site B-1: APN’s 52924032, 52924001, and
52924003;
 Site C-2: APN’s 42419049, 42419048, and
42419069;
 Site D-1: APN’s 42407094, 42407095,
42407053, 42407009, 42407081, 42407115,
and 42407116;
 Site D-2: 42406115 and 42406116; and
 Site D-5: APN’s 42407054 and 42407063.

Additional language in yellow highlight was
provided on page D-13 of the Draft Revised
Housing Element (November 2023) track change
version to clarify that the aforementioned sites
are small parcels, not small sites.

SB 9 Sites: The element is projecting 96 units that
will be developed based on the passage of SB 9
(Statutes of 2021) to accommodate a portion of its
C50 No Element was revised to
include factors utilized such as
age, ILV, and lot coverage;
A Senate Bill 9 analysis, including identifying the
number of parcels in Town that qualify for a lot
split was provided on page D-66 of the Draft

Town of Los Gatos Response to HCD Comment Letter: Page 8 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
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. The element should list
the four two-unit housing development applications
and the seven urban lot splits, and the two
development requests on single-family residential
zoned parcels; and Program BL should be revised to
implement significant incentives to encourage and
facilitate development. Please see HCD's January 12,
2023 review for additional information.

HCD Prior Review: 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
D66 however, should relate to site
inventory specific for Sb 9
projects, including all four two
unit housing development
applications, and seven urban
lot requests. In addition, the
element must discuss trends
and likelihood of
redevelopment. For example,
the town can identify on a site
specific analysis owner
interest, existing use, and
other conditions of the
existing infrastructure or
relevant factors indicating
additional development.

Please see HCDs prior review.

See the town of Ross as
example.

Revised Housing Element (September 2023)
track change version.

The inclusion of Senate Bill 9 units in the
Housing Element towards meeting the Town’s
RHNA was removed from Table 10-3 on page 10-
33, Table D-2 on page D-2, and page D-70 of the
Draft Revised Housing Element (November
2023) track change version.

Town of Los Gatos Response to HCD Comment Letter: Page 9 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
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.

Zoning for a Variety of Housing Types
(Manufactured Housing): The element was not
revised to address this finding. Please see HCD's
January 12, 2023 review for additional information.

HCD Prior Review: 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.

C15
No
Include program to comply
with gov code 65852.3.

Narrative describing that manufactured housing
is permitted by-right on all residentially zoned
parcels was included on page C-14 of the Draft
Revised Housing Element (September 2023)
track change version.

Additional text in yellow highlight was provided
in Implementation Program AQ on page 10-67 of
the Draft Revised Housing Element (November
2023) track change version to clarify that the
Town will comply with Section 65852.3 of the
Government Code to allow the installation of
manufactured homes.

Governmental Constraints
Land Use Controls: The element now lists
development standards by zoning district. However,
it must also list and evaluate development standards
for the North Forty Specific Plan, Mixed-Use
Commercial, and the High-Density Residential zones.

Please see HCD's January 12, 2023 review for
additional information
C3
C6
D2
~ Medium and High Density
Residential would be based on
the underlying zone in the
2020 GP?
An evaluation of the North Forty Specific Plan
residential development standards was provided
on page C-6 of the Draft Revised Housing
Element (September 2023) track change version.

Development standards for residential and
commercial development were provided in
Table C-1 on page C-5 of the Draft Revised
Housing Element (September 2023) track change
version.

Town of Los Gatos Response to HCD Comment Letter: Page 10 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
HCD Prior Review: 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 High-Density
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 maximum densities. The Town could engage
the development community to assist with this
analysis.

The development standards for the CH zone
(applicable General Plan land use category of
Mixed Use Commercial) and R-M zone
(applicable General Plan land use category of
High Density Residential) were provided in
yellow highlight on pages C-7 and C-8 of the
Draft Revised Housing Element (November
2023) track change version.

Fees and Exaction: The element now compares total
fees as a proportion of the total development costs
but still must list the fees that comprise that total
and particularly impact fees then evaluate those
total fees for impacts on development costs.

C19
C36
No Revise to include MU unit
project Table C-4, but should
also list fees for MF projects.

A table summarizing the development and
permit fees required for a single-family and
mixed-use development were provided in Table
C-4 on page C-20 of the Draft Revised Housing
Element (September 2023) track change version.

Table C-4 on page C-23 of the Draft Revised
Housing Element (November 2023) track change
version was revised to include the permitting
fees for a multi-family project in yellow
highlight.

Local Processing and Permit Procedures: While the
element provides additional information on the
processing of a typical market rate single or multifamily housing application, it mentions approval is C37 Yes~ All CUP approval findings
should be based on objective
The findings for a housing project which requires
a Conditional Use Permit (CUP) was provided on

Town of Los Gatos Response to HCD Comment Letter: Page 11 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
required by the Development Review Committee
(DRC) (p. C-29). The element must describe and
analyze the DRC process, identify and evaluate
approval findings for impacts on housing cost and
approval certainty.

C44 design standards to promote
certainty.
page C-48 of the Draft Revised Housing Element
(September 2023) track change version.

Implementation Program AP on page 10-67 of
the Draft Revised Housing Element (November
2023) track change version includes in yellow
highlight clarifying text to amend the
Conditional Use Permit findings for a multifamily and mixed-use project to make them objective and provide certainty in outcomes.

Housing for Persons with Disabilities: The prior
review found the Town’s reasonable
accommodation procedure contains constraints. For
example, subjective language in approval findings
such as “no impact on surrounding uses” can lead to
uncertainty of project approval through a
discretionary process. In response, the Town
commits Program BC to revise subjective language
criteria to “minimal impact on surround uses” (p. C38). However, reasonable accommodation is a unique exception process that should not contain
findings similar to a conditional use permit. Program
BC should be revised to specifically remove the
surrounding uses finding.
10-
53 C47
No Program V.

See suggested language in
blue below.

Implementation Program V on page 10-53 of the
Draft Revised Housing Element (September
2023) track change version includes language to
review the Reasonable Accommodation
procedure on an annual basis.

Suggested language for Implementation
Program V was added in yellow highlight on
page 10-53 of the Draft Revised Housing
Element (November 2023) track change version.

Inclusionary Zoning Ordinance: While the element
now discusses alternatives for meeting the Town’s
inclusionary requirements, it should still describe
incentives, including relationships with state density
bonus law and how the level of affordability is
determined.

C53 Yes
Housing Programs: Beneficial Impact
Programs must demonstrate that they will have a
beneficial impact within the planning period.

Beneficial impact means specific commitment to
10-
45 No Metrics should not be limited
to RHNA.

Implementation Program K on page 10-45 of the
Draft Revised Housing Element (September
2023) track change version describes outreach

Town of Los Gatos Response to HCD Comment Letter: Page 12 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
deliverables, measurable metrics or objectives,
definitive deadlines, dates, or benchmarks for
implementation. Deliverables should occur early in
the planning period to ensure actual housing
outcomes. The following programs still must be
revised to include specific commitments and
definitive timelines as follows:

Program M (Lot Consolidation): While the program
was revised to facilitate four units through the lot
consolidation process, it should increase the
numerical objective in stride with the need. Specially
as the Town is relying on several small sites to
accommodate a portion of lower income RHNA.
by the Town to property owners to facilitate lot
consolidation, including an amendment to the
Town Code for development incentives to
encourage the parcel merger process in a
streamlined and timely manner.

Metrics to Implementation Programs were
modified in yellow highlight on pages 10-42
through 10-43, 10-45 through 10-48, 10-50
through 10-53, 10-55, 10-59, and 10-61 of the
Draft Revised Housing Element (November
2023) track change version.

Program S (Affordable Housing Development): The
program should increase the numerical objective to
target meaningful outcomes during the planning
period.
10-
48 No Program O must be revised to
include a timeline when
development impact fees will
be reduced.

Implementation Program O on page 10-48 of the
Draft Revised Housing Element (September
2023) track change version describes incentives
for affordable housing development.

The timeline of Implementation Program O was
modified in yellow highlight on page 10-48 of
the Draft Revised Housing Element (November
2023) track change version.

Program T (Purchase Affordability Covenants in
Existing Apartments): The element should revise the
timeline earlier in the planning period to target a
beneficial impact (e.g., by 2026).
10-
49 Yes Program P. Implementation Program T on page 10-49 of the Draft Revised Housing Element (September
2023) track change version describes a program
for the Town to purchase affordability
covenants.

The timeline of Implementation Program P was
modified in yellow highlight on page 10-49 of
the Draft Revised Housing Element (November
2023) track change version.

Town of Los Gatos Response to HCD Comment Letter: Page 13 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
Program BM (Story Poles and Netting Policy): The
program now commits to review the story pole and
netting policy and explore options to reduce costs
affordable housing. However, the program still must
commit to an actual outcome, beyond exploring
options. In addition, the program should also
establish alternatives or modifications that promote
approval certainty. For example, the program could
remove the requirements or create alternative for
meeting the requirement such as visual renderings.
10-
69 C36
No Program AW must be revised
to include specific
commitment to amend story
poles and netting policy. In
addition, the City should
consider public comments
submitted by developer.

Implementation Program AW on page 10-69 of
the Draft Revised Housing Element (September
2023) track change version describes that the
Story Pole and Netting Policy will be reviewed to
reduce the associated costs of installing story
poles.

Implementation Program AW on page 10-72 and
page C-38 of the Draft Revised Housing Element
(November 2023) track change version was
modified in yellow highlight to include relevant
information regarding the status of this progress
by the Planning Commission and Town Council.

Housing Programs: Sites
As noted in Finding A3, 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.

As noted in the prior review, if necessary to make
appropriate zoning available to accommodate the
lower-income RHNA, Program D (Additional Housing
Capacity) 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.
10-
42 No Program D+.

Program AR must comply with
prior identified sites pursuant
to gov code 65583.2 c) to
make prior identified sites
available, if necessary.

Program AS of the Draft Revised Housing
Element (September 2023) identifies the reuse
sites included in the 6th cycle Housing Element.

Implementation Program AS on pages 10-68 and
10-69 of the Draft Revised Housing Element
(November 2023) track change version was
modified in yellow highlight to include the
definition of by right development, consistent
with Program D.

Town of Los Gatos Response to HCD Comment Letter: Page 14 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
Housing Program: Constraints
As noted in Finding A4, 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.

TBD Depends on a complete
analysis.

Governmental constraints are identified and
analyzed in Appendix C, starting on page C-1 and
additional information regarding permitting fees
was added in yellow highlight to Table C-4 on
page C-23 of the Draft Revised Housing Element
(November 2023).

Housing Program: AFFH
As noted in Finding A1, the element requires a
complete AFFH analysis. Depending upon the results
of that analysis, the Town may need to revise or add
programs. Actions listed to address AFFH analysis
must have specific commitments, 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; place-based 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. Given, among other things, the
Town is entirely in the highest category of disparities in access to opportunity and largely does not reflect
the socio-economic characteristics of the broader
region. The element must include significant actions
to promote housing mobility within the Town and
relate to the region to promote an overall inclusive
community. The element could consider improving
existing programs or including new programs.

No Following a complete analysis,
the town must revise to
include robust suit of actions
that provide stronger housing
mobility programs beyond
RHNA.

An Affirmatively Furthering Fair Housing (AFFH)
report and analysis of the Town and at a
regional level is provided in Appendix A, starting
on page A-1 of the Draft Revised Housing
Element (September 2023).

An action matrix with the Town’s goals and
actions to affirmatively further fair housing was
added in yellow highlight on page 10-73 of the
Draft Revised Housing Element (November
2023).

Town of Los Gatos Response to HCD Comment Letter: Page 15 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
Housing Program: ADU
Program U Accessory Dwelling Units (ADU): While
the program now commits to annually monitor the
production and affordability of ADUs and make
adjustments. It should clarify the types of
adjustments that will be considered such as
rezoning, additional incentives, fee reductions,
financing programs.
10-
50 No Program Q. The city must
include a definitive timeline of
when alternative actions will
be taken. See suggested
language in blue.

Implementation Program Q on page 10-49 of the
Draft Revised Housing Element (September
2023) track change version describes multiple
Town efforts to encourage the creation of
Accessory Dwelling Units (ADU).

Suggested language for Implementation
Program Q was added in yellow highlight on
page 10-50 of the Draft Revised Housing
Element (November 2023).

Other Revisions
Quantified Objectives: The element now includes
quantified objectives for new construction and
rehabilitation by income group but should also
include conservation objectives. Please note,
conservation objectives are not limited to at-risk
preservation and may include a variety of activities
that promote safe and stable housing such as code
enforcement and tenant protections. Examples of
programs that may be utilized include Programs T
(Purchase Affordability Covenants in Existing
Apartments), AE (Rental Dispute Resolution), AF
(Rental Assistance), AH (Stabilize Rents) and AQ
(Rental Housing Conservation).
10-
34 Yes Revised objectives.

Public Participation: While the element was revised
to include the renters survey results and previous
outreach conducted, it must also summarize all
public comments and describe how they were
considered and incorporated into the element.

HCD’s future review will consider the extent to
which the revised element documents how the
Town solicited, considered, and addressed public
10-
10 App I
and
App
G
~/No How were comments
submitted by Erick Phillips
7/31/23 addressed?
Appendix I was added to the Draft Revised
Housing Element (September 2023) including all
verbal and written public comments that have
been provided to the Town.

Appendix I of the Draft Revised Housing Element
(November 2023) was modified in yellow

Town of Los Gatos Response to HCD Comment Letter: Page 16 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
comments in the element. The Towns consideration
of public comments must not be limited by HCD’s
findings in this review letter. Please see HCD’s prior
review for additional information.
highlight to include a response to the public
comment submitted by Eric Phillips.

General Plan: While the element identifies Program
BG (General Plan Amendment) to ensure
consistency with the General Plan, it should discuss
how consistency will be maintained throughout the
entire planning period.
10-
67 Yes Program AQ.

Other (HCD use only)
Public comments App
A
? 5 public comments submitted:

Anne Paulson, Phil Koen (2),
Maryknol, Eric Phillips.

Appendix I was added to the Draft Revised
Housing Element (September 2023) including all
verbal and written public comments that have
been provided to the Town.

Appendix I of the Draft Revised Housing Element
(November 2023) was modified in yellow
highlight to respond to the referenced public
comments.

Pipeline Projects D 68 ? Table D-7 pipeline projects
included in previous years
APRs? Need confirmation of
DOF.

On page D-68 of the Draft Revised Housing
Element (September 2023) track change version,
table D-7 was added to include housing units
that were entitled, permitted, under
construction, and finaled from June 30, 2022, to
January 31, 2023.

The number of units that were entitled,
permitted, under construction, and finaled from
June 30, 2022, to January 31, 2023, as listed in
Table 10-3 on page 10-33, Table D-2 on page D2, and Table D-7 on page D-72 of the Draft Revised Housing Element (November 2023)
were modified in yellow highlight to remove

Town of Los Gatos Response to HCD Comment Letter: Page 17 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
units that were reported to the California
Department of Finance.

Document availability Yes
Rezone timing FYI
Resolution Received? NA
50% nonvacant resolution FYI
Electronic sites inventory FYI
AB 2339 C57
Overlay No HE Overlay Program AQ. The rezonings and creation of the Housing Element Overlay Zone (HEOZ) have been
recommended by Planning Commission and
introduced by Town Council.

Modification Authority NA
Suggested Program Language (in Blue)
Program Q: Annually monitor number of ADU’s/ JADUs produced, and affordability levels and make adjustments to accommodate a potential shortfall if determined necessary (i.e. adopt additional incentives or other strategies such as rezoning) Timing: Timeframe: Annually monitor the production and affordability and if necessary, make potential adjustments within six months.

Program V: Reasonable Accommodation procedure. Review and revise the Reasonable Accommodation procedure to promote access to housing for persons with disabilities, address potential constraints including subjective approval findings such as “impact on surrounding uses.” Timing: Review and Revise RA by December 2024. Annually review and, if necessary, revise the reasonable accommodations procedures.

This Page
Intentionally
Left Blank

6/14/2022 1
Using ADUs to Satisfy RHNA
Technical Memo
Background
Jurisdictions are allowed to use ADUs to help satisfy their RHNA requirements; however, the process is somewhat different than other aspects of the sites inventory. The standard method is to estimate the number of ADUs that will be developed in the planning period, then distribute those estimated units into each of the income categories.

Estimating Production
The estimate should be based on the average number of ADU building permits issued each year, multiplied by eight (because there are eight years in a housing element cycle). Most cities base their determination of annual ADU permits by averaging the building permits approved each year since 2018, when state law made it easier to construct the units. This is generally considered a safe harbor.

There is a small amount of flexibility in the calculations. If numbers were low in 2018 (or 2019) but were high in 2020, 2021, and 2022, a jurisdiction could potentially use 2019-2021 or 2020-2022 as the baseline.

Because this is outside the safe harbor, these calculations would need to be bolstered by a logical explanation for the methodology, e.g., the jurisdiction further loosened regulations in 2019.

Projecting a higher number of ADUs than what has been demonstrated through permit approvals in recent years may be possible, but more challenging. A slightly larger number may be warranted if a robust, funded, and clear plan to increase production has been put in place. However, you are strongly encouraged to coordinate with HCD before deviating from the standard methodology.

ADU sites are not listed in the site inventory, rather they are summarized and tallied in their own subsection.

EXHIBIT 11

6/14/2022 2
Determining the Income Distribution
ABAG conducted an analysis of ADU affordability and concluded that in most jurisdictions, the following assumptions are generally applicable. Many jurisdictions are choosing to use these numbers in lieu of conducting their own affordability analysis.

Table 1. Percent of ADUs Affordable to Different Income Categories Percent Income Category
30% Very low income
30% Low income
30% Moderate income
10% Above moderate
Please contact your County Collaborative Technical Assistance Provider for more information on affordability. A few key points are summarized below:
• Use building permits issued for the estimate.
• Jurisdictions do not need to list the addresses for potential ADUs. • Make sure the assumptions in your Housing Element match the numbers reported in past year APRs.

Please visit the ABAG Housing Technical Assistance page for more information, including a webinar that covers this topic.

Sample Housing Element Write Up
The following is what a jurisdiction might include in their sites inventory section of the housing element.

Since City amended its ordinance in 2019, the number of ADUs permitted has significantly increased. City’s ordinance goes beyond state law and allows 1,200 square foot ADUs. Additionally, the City website has an entire section devoted to ADUs with clear information about the standards and approval process. On average, the building department provides comments to completed ADU applications in 10 days. 2018 is not used as a base year because the old ADU standards were very restrictive and the City did not have much information on its website. Production has been consistently higher since the new ordinance went into effect.

Since 2019, the City has issued an average of 12.75 ADU permits per year, as listed below.

Year Building Permits
2017 2
2018 1
2019 10
2020 15
2021 10
2022 16 (estimate based
on first 6 months)

6/14/2022 3
Based on the annual average of 12.75 ADU permits per year since 2019, the City is projecting 102 ADUs being permitted over the eight year planning period and is using ABAG’s survey data to distribute the projected units by income category:

Income Category Percentages Totals
Very low 30% 30
Low 30% 31
Moderate 30% 31
Above moderate 10% 10
Based on these calculations, the City is able to meet approximately 1/7 of its RHNA through ADUs, and must accommodate another 598 units on the sites detailed in the sites inventory. See table below for a summary:

V Low Low Mod Above Mod Total
RHNA 200 200 100 200 700
Pipeline / Approved Units 0 0 0 0 0
ADUs 30 31 31 10 102
Remaining RHNA 170 169 69 190 598
ADUs and Level of Scrutiny of Other Sites in Housing Elements Cities that are heavily dependent on redevelopment sites (or technically nonvacant sites) face more scrutiny in their lower income sites inventory. ADUs can help some cities avoid this additional scrutiny/analysis. To simplify: if greater than 50 percent of the lower income RHNA can be satisfied by vacant sites, under construction (pipeline) projects, and projected ADUs, cities can avoid the higher standard.

For example: If the lower income RHNA is 100 and there are ten units under construction and sites for ten vacant units, a jurisdiction can avoid the heightened scrutiny if ADU projections are at least 31 units for the housing element period. (Half of 100 is 50. 10 under construction plus 10 vacant plus 31 ADUs is 51, or greater than 50.)

This Page
Intentionally
Left Blank

From: < >
Sent: Tuesday, November 28, 2023 6:30 PM
To: Laurel Prevetti <[email protected]>; Joel Paulson <[email protected]> Subject: Fwd: Public Comment - Agenda Item #1 - Planning Commission meeting Nov 29 This was also sent to the Council and Wendy Wood to forward to the PC. 11-28-23
Dear Members of the Planning Commission,
The Los Gatos Community Alliance (LCGA) is a group of residents writing to you regarding the revised draft 2023-2031 Housing Element submitted to HCD on November 16, 2023 (November draft HE) which the Planning Commission is to “consider and make a recommendation to the Town Council on” at your upcoming November 29th meeting.

By now the Planning Commission should be fully aware the Town failed to comply with AB 215 and filed the November draft HE prior to completing the mandatory 7-day public comment period. We have attached HCD’s May 30th comment letter and specifically draw your attention to Comment D as well as the general discussion regarding AB 215 requirements in HCD’s cover letter. We have also attached two emails from Ms. Whelan dated November 20 and 21 which provide additional background and confirm the Town’s failure to comply with Govt Code Section 65585(b)(1).

We further point out that the accompanying staff memo for agenda item #1 dated November 22, 2023, provides a chronology of events beginning with November 7th, but fails to disclose that the November draft HE, which is the draft the Commission will be considering on November 29th, was submitted to HCD on November 16, 2023.

This is particularly troublesome because the Planning Commission held a special meeting on November 15, the purpose of which was to, “consider and make a recommendation to the Town Council on the draft of the Revised 2023 -2031 Housing Element.” For the sake of clarity, the Housing Element being considered at the November 15th meeting was the “September 2023 draft,” which had already been submitted to HCD on October 2, 2023, after the mandatory 7-day public comment period. We also point out that the public comment period for that draft closed just one business day earlier, on September 29th This gave no time for the Town to reasonably consider and address the public comments it received.

The agenda for the November 15th meeting included a Staff report dated November 10, 2023 which stated “the primary purpose of this agenda item is to ask questions of staff and the Town’s Housing Element consultant on the Revised Draft Housing Element (September 2023), discuss potential modifications to the document based on the preliminary feedback provided by the Town’s HCD reviewer, receive public comment and continue the item to a date certain.” The agenda also included a link to the Town’s website where the public could review the “September 2023 draft,” of the revised Housing Element.

Additionally, the Staff provided an addendum report dated November 14th which included a “draft preliminary review matrix on the draft revised Housing Element, as submitted to HCD on October 2, 2023, received November 7, 2023, with Staff responses as of November 14, 2023”. This was the first time the Planning Commission or the public had seen this document.

EXHIBIT 12