Los Gatos City Council
December 19, 2023

At the November 15th special PC meeting, Staff never fully disclosed to the Planning Commission or the public the Staff’s true intention, which was to submit a completely revised draft Housing Element the very next day. While the HE consultant, Veronica Tam, indicated in her public comments that Staff planned to, “resubmit revisions by the end of the week,” the extent of the revisions were not disclosed.

The additional changes were described as, “pretty technical in nature.” The consultant explained the changes were being made based on her belief that “HCD would incorporate the majority of the revisions” which would “dismiss their concerns” (presumably reported on the matrix) and favorably impact HCD’s comment letter on the October 2 submission which was to be received by December 1.

However, it raises the very uncomfortable question as to why Staff did not have the Planning Commission review the proposed revisions the night of November 15th since a new draft clearly existed and in fact was submitted the very next day? The stunning problem that the consultant and Staff created was by resubmitting a new draft on November 16, the Town knowingly denied the public the right to comment BEFORE any revision was submitted to HCD as required by AB 215 and emphasized in HCD’s May 30 comment letter.

On November 16th, the Staff posted a link to the newly revised November 2023 draft HE on its website and emailed links to individuals and organizations that had previously requested notifications. The LGCA received such email notification in the afternoon of November 16th. The revised November draft contained massive changes (https://www.losgatosca.gov/DocumentCenter/View/36911/Draft-Revised2023-2031-Housing-Element-November-2023---Track-Changes-Copy )and were not limited to “technical revisions”.

Furthermore, the email notification also failed to disclose the Town had already submitted the November 2023 draft HE to HCD. Rather the email, in a very purposeful manner, stated that the 7-day public review period for the November 2023 draft had commenced and “will run until 4pm on November 27, 2023”, creating the false impression that after 7-day comment period had closed, the November 2023 draft would then be submitted to HCD. That is certainly what would be expected if the Town were to comply with AB 215.

It is against this backdrop of facts that we make the following comments for your review and consideration.

1. The Planning Commission should not take any action at the November 29th meeting regarding the November draft HE. This meeting is not a continuation of the November 15th meeting, since an entirely new Housing Element (November draft 2023) is now under consideration (e.g., “the item”) and was never considered at the prior meeting.

2. To fully comply with AB 215 the Staff must “consider and address” all public comments received before the Planning Commission can take up the November draft. The agenda package does not include any public comments let alone any discussion from Staff as to how Staff has considered and addressed these comments.

3. It would be irresponsible and a violation of the Planning Commissioners’ fiduciary duty of care to make any recommendation to the Town Council prior to receiving and properly deliberating HCD’s comment letter on the October 2, 2023 HE revision. This letter is due no later than December 1, 2023 – just 2 days after your scheduled meeting. This would be repeating the same

mistake the Planning Commission made when it made its recommendation to the Town Council on January 11, 2023, before considering HCD’s comment letter received the very next day on January 12, 2023. In our opinion, taking any action which “front runs” HCD’s December 1 comment letter borders on an abuse of power and could create potential legal issues for the Town.

4. The Planning Commission needs to clarify with Staff the status of the November draft HE. Since this revised draft was submitted to HCD mid-cycle, it is our understanding that this will start a new 60-day review period, like the mid-cycle submission made on March 31, 2023 which was also considered as a separate submission. If this is correct, HCD’s comment letter would be received around January 29, 2024.

In summary, the LGCA is as eager as any group for the Town to obtain HCD certification. But laws matter.

The Town needs to fully comply with Housing Element Laws, just as every other ABAG member has done.

We appreciate the work the Planning Commission has done in moving the Town closer to certification.

Jak Van Nada, on behalf of
Los Gatos Community Alliance

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 midreview 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 < com>; 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
[EXTERNAL SENDER]
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 3:13PM 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 midreview 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.

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

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 midreview 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

STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
May 30, 2023
Joel Paulson, Director
Community Development Department
Town of Los Gatos
110 E Main Street
Los Gatos, CA 95030
Dear Joel Paulson:

RE: Town of Los Gatos’ 6th Cycle (2023-2031) Revised Draft Housing Element Thank you for submitting the Town of Los Gatos’ revised draft housing element update received for review on March 31, 2023. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. Our review was facilitated by a conversation on May 10, 2023 with yourself, Jennifer Armer, Planning Manager, Jocelyn Shoopman and Erin Walter, associate planners. In addition, HCD considered comments from Phil Koen pursuant to Government Code section 65585, subdivision (c).

The revised draft housing element addresses many statutory requirements described in HCD’s January 12, 2023 review; however, revisions will be necessary to substantially comply with State Housing Element Law (Gov. Code, § 65580 et seq). The enclosed Appendix describes the revisions needed to comply with State Housing Element Law.

For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government fails to adopt a compliant housing element within 120 days of the statutory deadline (January 31, 2023), then any rezoning to make prior identified sites available or accommodate the regional housing needs allocation (RHNA), including for lower-income households, shall be completed no later than one year from the statutory deadline. Please be aware, if the Town fails to adopt a compliant housing element within one year from the statutory deadline, the element cannot be found in substantial compliance until all necessary rezones pursuant to Government Code sections 65583, subdivision (c)(1) and 65583.2, subdivision (c) are completed.

Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the Town must continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available while considering and incorporating comments where appropriate. Please be

Joel Paulson, Director

aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD.

Chapter 654, Statutes of 2022 (AB 2339), adds specificity on how cities and counties plan for emergency shelters and ensure sufficient and suitable capacity. Future submittals of the housing element may need to address these statutory requirements.

For additional information and timing requirements, please see HCD’s memo at https://www.hcd.ca.gov/sites/default/files/docs/planning-and-community/ab2339- notice.pdf.

Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the Town will meet housing element requirements for these and other funding sources.

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

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

Sincerely,
Paul McDougall
Senior Program Manager
Enclosure

Town of Los Gatos’ 6th Cycle Revised Draft Housing Element Page 1 May 30, 2023

APPENDIX

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

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

A. Housing Needs, Resources, and Constraints

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

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.

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.

Town of Los Gatos’ 6th Cycle Revised Draft Housing Element Page 2 May 30, 2023
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 quantify the number of units by income group and location then evaluate the impact on socio-economic concentrations. Please see HCD's January 12, 2023 review for additional information.

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 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 re-assess 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.

2. Include an analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (Gov. Code, § 65583, subd. (a)(2).) Housing Conditions: The element discusses code enforcement violations; however, it must also provide a Town-wide estimate of the number of units in need of rehabilitation and replacement.

3. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).)
Realistic 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.

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

Town of Los Gatos’ 6th Cycle Revised Draft Housing Element Page 3 May 30, 2023
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 lowerincome 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.

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

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 above moderateincome 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.

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.

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

While the Town has submitted an electronic sites inventory, if any changes occur, the Town should submit the revised inventory to HCD as part of any future re-adoption submittal.

4. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures... (Gov. Code, § 65583, subd. (a)(5).)
Land Use Controls: The element 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.

Town of Los Gatos’ 6th Cycle Revised Draft Housing Element Page 4 May 30, 2023
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.

Local Processing and Permit Procedures: While the element provides additional information on the processing of a typical market rate single or multi-family housing application, it mentions approval is 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.

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. C-38). 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.

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.

5. Analyze any special housing needs such as elderly; persons with disabilities, including a developmental disability; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. (Gov. Code, § 65583, subd. (a)(7).)
Special Housing Needs: The element was not revised to address this finding. Please see HCD's January 12, 2023 review for additional information.

B. Housing Programs

1. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing Element... (Gov. Code, § 65583, subd. (c).)
Programs must demonstrate that they will have a beneficial impact within the planning period. Beneficial impact means specific commitment to 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:

Town of Los Gatos’ 6th Cycle Revised Draft Housing Element Page 5 May 30, 2023
• 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.
• Program S (Affordable Housing Development): The program should increase the numerical objective to target meaningful outcomes during the planning period. • 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).
• 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.

2. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Government Code section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. (Gov. Code, § 65583, subd. (c)(1).)
As noted in Finding 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 owneroccupied 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.

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

Town of Los Gatos’ 6th Cycle Revised Draft Housing Element Page 6 May 30, 2023
accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).) As noted in Finding 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.

4. Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics... (Gov. Code, § 65583, subd. (c)(5).)
As noted in Finding 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.

5. Develop a plan that incentivizes and promotes the creation of accessory dwelling units that can be offered at affordable rent... (Gov. Code, § 65583, subd. (c)(7).) 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.

C. Quantified Objectives
Establish the number of housing units, by income level, that can be constructed, rehabilitated, and conserved over a five-year time frame. (Gov. Code, § 65583, subd. (b)(1 & 2).)
The element 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

Town of Los Gatos’ 6th Cycle Revised Draft Housing Element Page 7 May 30, 2023
Covenants in Existing Apartments), AE (Rental Dispute Resolution), AF (Rental Assistance), AH (Stabilize Rents) and AQ (Rental Housing Conservation).

D. Public Participation
Local governments shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the Housing Element, and the element shall describe this effort. (Gov. Code, § 65583, subd.(c)(9).) While the element 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 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.

E. Consistency with General Plan
The Housing Element shall describe the means by which consistency will be achieved with other general plan elements and community goals. (Gov. Code, § 65583, subd. (c)(7).) 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.

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A P P E A R A N C E S:

Los Gatos Planning
Commissioners:

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

Joel Paulson
Town Attorney: Gabrielle Whelan
Transcribed by: Vicki L. Blandin
(619) 541-3405
ATTACHMENT 10

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

CHAIR BARNETT: Under Verbal Communications
tonight the public is going to speak on Agenda Item 1,
which we’ll get to shortly, and I will explain the Town’s guidelines pertaining to Verbal Communications when we get to that point in the agenda.

We’ll now consider Agenda Item 1, in which we are
asked to consider and make a recommendation to the Town Council on the Draft Revised 2023-2031 Housing Element.

Location is Town-wide. General Plan Amendment Application GP-22-003. Do we have a Staff Report tonight on this
matter? Thank you.

JOCELYN SHOOPMAN: Good evening. The primary
purpose of the item this evening is to consider and make a recommendation to the Council on whether to adopt the Draft Revised Housing Element with modifications in response to the HCD Draft Preliminary Review Matrix that the Town
received on November 7th.

On November 16th the Draft Revised Housing Element
was made available for a seven-day public review period ending on November 27th as required prior to resubmittal to HCD. An addendum report was provided to the Commission
yesterday that contained the public comments received

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during the seven-day review period, as well as the cover letter that was provided to HCD as part of the Town’s
November 28th resubmittal of the Draft Revised Housing
Element.

Staff anticipates receiving HCD’s comment letter
this Friday, December 1st.

The Town Council’s consideration on the adoption
of the Draft Revised Housing Element is tentatively
scheduled for December 19th.

A Desk Item was also provided to the Commission
today with additional public comments received following the publishing of the addendum report, a copy of the
response memorandum to the Draft Preliminary Review Matrix provided by HCD; and a copy of the technical memorandum regarding Accessory Dwelling Units that was prepared by the Association of Bay Area Governments.

This completes Staff’s presentation. We are
available for any questions, as well as the Town’s Housing Element consultant, Veronica Tam.

CHAIR BARNETT: Thank you, Ms. Shoopman, and I’ll
ask my fellow Commissioners if they have questions of you at this time? Commissioner Hanssen.

COMMISSIONER HANSSEN: Thank you for that, and I
did want to compliment Staff. The Housing Element looks as

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good as it ever has been, and hopefully we’re going to be there with HCD.

I have some concerns about the timeline of the
submissions, and it was also noted in public comments. My question for Staff at this point is the draft without any changes between then and now was submitted to HCD on the 16th. They were told to consider the date of submittal
today, is that correct?
JOCELYN SHOOPMAN: There was an informal
submittal to HCD that occurred on November 16th providing them with a copy of Draft Revised Housing Element and also making them aware of when the seven-day review period would be occurring; this was offered to the Town by our HCD
reviewer to provide them with this informal submittal,
knowing that the seven-day review period would be occurring followed by the Town’s formal resubmittal to HCD.

COMMISSIONER HANSSEN: Thank you for that. My
follow up question is if the actual submittal was today, or I guess the 28th was yesterday, the actual submittal was yesterday, given there were a fair amount of items left from the November 7th matrix for them to look at, are they still going to be able to complete their review and get a letter by December 1st? That seems like not a lot of time, given the past history you guys have encountered.

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JOCELYN SHOOPMAN: Thank you for the question.

Yes, obviously we would have liked to get it to them
sooner, but with the holiday that did present some
challenges in terms of timing. Our hope is that he’ll be able to complete that review for the December 1st letter so it does address many of those comments in the matrix, but ultimately we will find out when we receive that comment letter on Friday.

COMMISSIONER HANSSEN: Is it possible that their
comment letter could be we’re not ready to make a full
comment on the submission?
JOCELYN SHOOPMAN: Our consultant may want to
also chime in, but once there is a formal submittal to HCD they have very clear timelines that they have to follow, so there will be a comment letter that’s provided to the Town on December 1st.

COMMISSIONER HANSSEN: Okay, thank you.

CHAIR BARNETT: Other questions for Staff?
Commissioner Janoff.

COMMISSIONER JANOFF: So they’re obligated to
provide a comment letter on December 1st covering the
September submittal. Is it fair to say that the portions of the draft that were resubmitted yesterday may not be
considered or included in their December 1st comment letter?

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JOCELYN SHOOPMAN: Yes, there is that potential.

COMMISSIONER JANOFF: Thank you.

CHAIR BARNETT: Other questions? Commissioner
Burnett.

COMMISSIONER BURNETT: Thank you. Question for
Staff. Can you go over again why we did have a Planning Commission meeting on the 15th then, since there was a new matrix and there was work being done on the revised Housing Element the next day.

JENNIFER ARMER: Thank you for that question.

When scheduling public hearings they do need to be set and scheduled a significant period of time ahead of time so that we can make sure that we have the required public
noticing and ads to the paper, and that takes several weeks in advance of the date of the hearing.

In the case of the 15th, we were hoping that we
would have the opportunity to meet with the Town’s reviewer to get some initial feedback, and so we were hoping to have the discussion on the 15th with some revisions. That didn’t occur as early as we had hoped, and so we weren’t able to present to Planning Commission the fully revised Housing Element based on that interim feedback. That is why we
recommended continuance to this evening, so that you have sufficient time, in this case nearly two weeks, to take a

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look at the full revisions that have been made in response both to the previous letter from HCD and the interim
review.

CHAIR BARNETT: Commissioner Hanssen.

COMMISSIONER HANSSEN: When we met on the 15th you
went through some changes to the sites inventory and some other changes that you’re going to make, and I believe they were all positive in terms of the draft that we just saw, and in particular the affordable housing AFFH matrix looked great.

Now, given what Commissioner Janoff asked,
they’re commenting primarily on the draft that they
received in early October, so given the changes in the
sites inventory, although we didn’t add any new sites, what is the likelihood that they’re going to be able to
realistically give a thumbs up on this? They don’t have a lot of time to review a couple of really important inputs.

JENNIFER ARMER: Thank you for that question. We
are still hopeful that these additional changes that were prepared two weeks ago can be incorporated into the review that results in the letter on Friday; there still is a good chance of that.

I also invite Veronica Tam, our consultant, if
she’s available, to turn on her camera and join us to talk

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about how these interim reviews have worked with her and other agencies in the past.

VERONICA TAM: Thank you, Jennifer. They’ve seen
a lot of the revisions that we have made throughout that process, and I think it’s based on we try to respond very well with the matrix that they have provided. I think the last set of changes is very specific. I am hoping that he would have the opportunity to review it.

The reviewer contacted me this morning and asked
me to make sure that the City is able to submit the
revisions as soon as possible, and so I am again hopeful, along with Staff, because he contacted me and gave us a deadline by the end of the day that he would be able to review those changes and incorporate that into the letter, so there is a good chance. I would not be able to speculate whether he will, but there is a chance, because he did ask and gave us a deadline today.

COMMISSIONER HANSSEN: If I could ask a follow up
question. Thank you for that explanation; that was helpful.

I’m assuming that they’re working primarily from
the matrix that they gave us on November 7th. Is it typical in your experience that they would limit their review only to those items that weren’t covered and not look at new things?

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VERONICA TAM: Correct, that’s what we usually do
and that’s the reason why we always highlight, and that was the questions that he had asked me a few days before ahead of time too, if the changes would be differentiated from the previous revisions. We usually use different
highlighting to illustrate the different stages of the
changes that we’ve made based on different versions of the matrix. The reason why we do that with highlighting is to actually make sure that they focus on the latest revisions that address the latest matrix.

COMMISSIONER HANSSEN: Okay, thank you very much.

CHAIR BARNETT: Other questions? I have a couple
for Staff. Has the Town received a response from HCD
regarding the inquiry as to whether the Housing Element filing will be deemed to have been received at the end of the day on November 27th? It was a request from Mr. Paulson to HCD on that.

JENNIFER ARMER: We did submit yesterday the 28th,
and we did receive acknowledgement from our reviewer that it had been received yesterday, so the formal submittal of this interim draft is considered submitted yesterday the 28th.

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CHAIR BARNETT: If I understand correctly, you’re
saying that HCD has agreed with the Town’s position that the submittal was on November 27th?
JENNIFER ARMER: It actually was formally
submitted on the 28th, so there was the correspondence back and forth about sharing the preliminary draft previously and wanting to make sure that they did not consider the email on the 16th as being a formal submittal, because we had not yet completed the seven-day review. The formal
submittal of this interim draft with additional revisions was yesterday the 28th, and they have confirmed that they received it on that date.

CHAIR BARNETT: Okay, thank you. One other point
here. There was a comment from the public that the midcycle submission would start a new 60-day review period. Do you have a comment on that? This was in Exhibit 12, number four on page two.

JOCELYN SHOOPMAN: Thank you for the question. In
speaking and corresponding with our HCD reviewer, what was provided in an email on the 16th was an informal submittal; it did not constitute an actual formal submittal, and we noted that the seven-day review period would be starting on that day and ending on a certain day, so no, it’s not our

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understanding that it constitutes a new 60-day review
period.

JOEL PAULSON: Through the Chair, just to add,
the formal submittal that occurred yesterday does start a new 60-day clock.

CHAIR BARNETT: Thank you for that clarification.

I might as well take this opportunity to ask Staff about the consequences if this hearing were continued to a date in the future based on the expectation of input on December 1st, which is 48 hours away?
JENNIFER ARMER: Thank you for that question, and
I understand the interest in finding out what’s in that letter; I think we’re all eager to see it.

Staff is recommending that Planning Commission
make a recommendation on the Draft Housing Element this evening because of an interest in allowing the Town Council to consider adoption of the Housing Element before the end of the year. Their final meeting is on December 19th. The deadline for submitting an ad to the newspaper for that meeting is actually first thing tomorrow morning, and it is required by State law to include specifically what the
Planning Commission recommendation is, so this really is the last date for us to be able to bring this for
consideration by Town Council before the end of the year.

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CHAIR BARNETT: I see some hands up here. We’ll
start with Vice Chair Raspe.

VICE CHAIR RASPE: Thank you, Chair. If I can
follow up, because it seems like we’re pressing forward in quick fashion, which I take to mean that we’re trying to avoid certain consequences. Can you remind us, and the
public as well, what the consequences are for failing to timely put into place the Housing Element.

JENNIFER ARMER: Thank you for that question.

I’ll start, and the Town Attorney may have something to add. The goal here is to get a Housing Element adopted and certified as early as possible in order to avoid any
additional Builder’s Remedy applications. There are a lot of reasons that it is beneficial for the Town to have an adopted Housing Element.

As the information that was provided to Planning
Commission shows, there has been a lot of work that has been done over this last year to bring the Draft Housing Element into compliance with State law. The long chart that was included in your addendum, for example, goes through the State regulations section-by-section to show
specifically how this updated Housing Element does address all of those components.

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So while we do not have the final blessing from
the State as of yet, the information that we have provided we hope will allow the Planning Commission to make a
recommendation this evening.

VICE CHAIR RASPE: Thank you for the answer.

CHAIR BARNETT: Commissioner Hanssen and then
Commissioner Janoff.

COMMISSIONER HANSSEN: A related question to
that. There has been some misinformation, I think, that has been floating around. What I heard is that we need to go as soon as possible, but there isn’t an official deadline, and so I’m asking Staff to confirm the only deadline that I’m aware of is on January 31, 2024, the deadline to have the rezoning completed.

JOCELYN SHOOPMAN: That’s correct.

COMMISSIONER HANSSEN: Which has been done with
the exception of one site that is not integral to the
success of the sites inventory.

CHAIR BARNETT: Commissioner Janoff.

COMMISSIONER JANOFF: Thank you. I think we all
want to see the letter on December 1st. Before the Planning Commission makes a recommendation it seems prudent that we would have that information in hand before we would
recommend the Town Council adopting the current draft.

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However, when I look at the progress that’s been
made between the original submission, the draft in
September, and the relatively minor but specific changes that were in our package today, I feel confident that we have a good document. I did before, but I feel even more confident now.

My question to Staff is cant the Planning
Commission make a recommendation this evening that Town Council adopt the November draft of the Housing Element with the condition that if the letter from HCD on December 1st is a no or noncompliance, that that recommendation would not go forward?
ATTORNEY WHELAN: That could be done. An
alternative would be to adopt the resolution and if HCD were to recommend significant changes, those changes could either be made before the Town Council meeting, or
alternatively the Planning Commission could meet again.

COMMISSIONER JANOFF: Thank you.

CHAIR BARNETT: My intent was to go forward with
the public comment for tonight, and then following that perhaps it would be appropriate for the Commission to
consider the procedural status of the hearing before we go into a detailed review of the matrix as a way to proceed.

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With that in mind, I’ll open the public portion
of the meeting where members of the public are allotted up to three minutes to comment on Agenda Item 1, and as at all of our meetings, the public’s input is very much
appreciated and welcomed and the Planning Commission
considers the comments carefully.

During tonight’s meeting any person may speak
after being recognized by the Chair, and no person other than the Commissioners, Staff, and the person having the floor shall be permitted to enter into the discussion. No member of the public is allowed to speak more than one
time, and to assure the opportunity for all people to
participate there is no yielding of time to another
speaker.

We have several cards up here, but if you haven’t
already submitted on, please hand one to Staff and we’ll be sure to include you. When your name is called, please come to the microphone and state your name and address, if you would, or you can speak anonymously. Again, in fairness to all speakers the comments are limited to three minutes.

I’ll begin with Ms. Quintana.

LEE QUINTANA: To begin, I’ll make some
disclosures. I was a member of the GPAC for 2040 and I’m

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currently a member of the Historic Preservation Committee, at least until the 31st, and I’m speaking as an individual.

I thought about what I was going to say today all
day and it kept changing, and I kept coming up with some statements that are just clichés that all seem to fit. One was I feel like I’m in the middle of a skit of Who’s on First and What’s on Second. I feel like I’m trying to read and make comments on a moving target, and a moving target that isn’t even all visible at one time. This is really getting to be ridiculous, and the more these halfway
reports come out, the more complicated and bizarre this whole process has become.

If as the attorney said, you can meet again
before the Town Council after the receipt of the comments from HCD, I would think that’s what you would want to do so you weren’t just making a decision to approve something, or recommend approval of something, that you didn’t even know what it was, so to speak.

The other thing I want to say is that HCD
comments, to me, said they’re focused on about three
things.

They were focused on the previous Housing
Element’s evaluation factors that are in the way of
achieving, and the AFFH, but there were overlaps with all

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of them. To me, reading through the revised text, there’s a lot of it, but I don’t think it adequately addresses HCD’s comments and I would be very surprised if they didn’t make those comments. They seem to indicate that even the site inventory isn’t approved yet; because they need the
analysis from those other evaluations before they can even address that.

One of the things that they commented on was the
lack of zoning for multiple-family distributed evenly
throughout the Town.

I’m out of time, but I have a lot more to say.

CHAIR BARNETT: Let’s see if the Commissioners
have questions for you. I don’t see any. We only have one other speaker card, so would you like to speak for another minute?
LEE QUINTANA: To me, one of the problems with
the analysis in the first place is that like for AFFH it’s divided into little pieces. All the way along each piece is answered, each piece compares it to the region and to the county, etc., but there is no point at which all of that information gets reaggregated again and analyzed in a
totality, because there are contradictions within each of those different sections; that’s the analysis that I think the state is looking for.

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Also, things that are in the way, so to speak—
I’ve lost the word—we talk about them but we don’t give any specific examples. What is the town zoning that the Town has that impeded achieving our goals in the Housing
Element? The information is not specific enough.

CHAIR BARNETT: Thank you for your comments. They
are appreciated. Mr. Fagot.

LEE FAGOT: Good evening, and I’m speaking as a
citizen of the Town of Los Gatos; I’m not representing any group.

I did want to commend all of you for the work
that you’ve been doing. It has been very difficult, I know, because of the dynamic changes that are occurring.

One of the things I would ask for is that Santa
brings everybody a calendar, and that they all use the same calendar for planning, because what we have is one that the town Staff uses, one that HCD uses, one that the Planning Commission uses, the Town Council, and they don’t mix
together terribly well. For example, the November 15th
meeting that you held was actually a very good and
informative meeting, I appreciate it, however, we learned that the next day, the 16th, without citizen or Council review, the staff submitted the new draft to HCD that had significant changes, so there wasn’t, again, the

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opportunity to review. The public comment period of seven days is before submission, not after or concurrent with a submission, as you just discussed a few minutes ago. Now I have learned tonight that yesterday another submittal was made.

I’m going to skip my notes, because I think Ms.

Quintana made a lot of very good points that there needs to be better coordination between the Planning Commission, the Housing Element Advisory Board, the town Staff, then to the Council. The Council needs to give the final review and direction, but the citizens need an opportunity as well, as is outlined in the law.

Again, I appreciate the challenges that you face
and the work that you’ve done, but let’s work together
better going forward. A lot of lessons coming out of this are that trying to do the General Plan and then doing the Housing Element, the sequence was not good. Let’s work on one universal calendar that we can all work with together and put it in a logical sequence of feedback from the
consultant, which was not provided earlier after her
meeting; and the Town Staff meeting with HCD was not given back to this Commission or the Housing Element Advisory Board, or the Town Council after the consultant’s meeting with HCD, so changes in the process need to occur, and

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again, I appreciate all that you’ve done and wish you well.

Thanks.

CHAIR BARNETT: Thank you, sir, for your
comments, and we have a final card from Mr. Alarcon.

TONY ALARCON: Tony Alarcon, (inaudible.) Many of
us head up to Tahoe into Truckee quite often. Truckee has a population very similar to ours, a lot of affluent
retirees. Like our town, they have a lot of affluent
people.

I want to say thank you for all your hard work
from the Planning Commission.

I’ve looked at Truckee’s Housing Element plan.

They have a master plan called the Truckee Hilltop; it was approved in 2008. It’s not yet been built. It’s 300 units, 54,000 square feet of commercial, and a 60-room hotel. For 15 years that project hasn’t been built, and looking at their Housing Element plan the last submission from them was 2019. They submitted that plan on August 30th and it was approved on September 16th.

I sit back and I look at our town, and we’re
going through this whole process and I think it echoes what the other speakers have expressed. I sincerely don’t
understand how this has taken so long, and it feels as
though there have been many errors, whether it’s not

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keeping track of the consultants, the communication between departments, or perhaps trying to overachieve and build too many units instead of simply complying with our RHNA
numbers.

It’s mind boggling to me, and I feel for the
Planning Commission. I hope that our Town citizens hear what I’ve said today and ponder that as well when you
decide to vote in the next election and look for leadership within our town, that we need to streamline our process and we need to do better. We need to be a leader with other towns instead of having these delays and having citizens not know what’s going on.

Asking the Planning Commission to approve a plan
before they have received a letter of comments from the HDC is not a valid approach. Thank you.

CHAIR BARNETT: Thank you, sir. Are there any
questions from Commissioners? I don’t see any. I don’t have any more cards. Do we have anyone on Zoom?
JOEL PAULSON: We do, thank you, Chair. The first
to speak will be Ron Meyer.

RON MEYER: I’m not going to be as complimentary.

I’m actually going to call it the way is and the way I’ve seen this process evolve over the last 12-16 months, and the failure in the ability to inform the public, to manage

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the previous consultants in their three failed attempts, and the waste of $180,000 of taxpayer money.

I see a level of incompetence in both the Staff
and the Planning Commission, because the Planning
Commission has not basically taken the recommendations from the Housing Element Advisory Board and the Los Gatos
Community Alliance seriously. There is some damn good
analysis in both some of the HEAB reports in the previous meetings, and also the latest letter from the Los Gatos Community Alliance.

The incompetence, the non-transparency, the
confusion, the mis-coordination, the oversight by the Town Council, and the usurping of their power by the Town’s
staff and pieces of the Planning Commission is not
favorable, it is not even remotely the way that this
process should have been conducted. The citizens of Los Gatos deserve better. They deserve better in the Town
Staff, they deserve better in the Planning Commission, and consequently we’re not being serviced properly at all.

The process has been non-transparent, confusing,
and convoluted. The Town Council hasn’t been doing their job in terms of exercising their oversight responsibilities over this whole process, so consequently we, this town’s citizens, are going to end up paying for this, because of

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that incompetence, that non-transparency, and the whole screwed up process from the beginning. You folks are
reprehensible. I’m finished.

CHAIR BARNETT: Thank you, sir. Are there any
questions by Commissioners? I don’t see any. Thank you once more. Any other callers on Zoom, Mr. Paulson?
JOEL PAULSON: Thank you, Chair. Anyone else on
Zoom who wishes to speak, please raise your hand. I don’t see any hands raised, Chair.

CHAIR BARNETT: Thank you very much. I will now
close the public portion of the meeting and again propose that the Commissioners first discuss the procedural issues that have been raised by the Los Gatos Community Alliance concerning continuing the meeting to a date following
Friday’s anticipated receipt of HCD’s comments on the
submittals of November 16th and 28th, and that the public was not afforded the statutory time to comment on the Housing Element drafts.

We haven’t discussed that issue yet, and maybe
it’s a moot point depending on how our discussion goes, but I’d like to open and ask Commissioners to comment on the issue that we’ve already brought up about a possible
continuance to a different date. Commissioner Janoff.

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COMMISSIONER JANOFF: Thank you. We have an
interesting problem in front of us. We have a timing issue that has been described by Staff with regard to getting adoption of the Housing Element in front of Town Council as soon as possible for the reasons stated, which makes sense, and we also have incomplete feedback from HCD.

Personally, I can see a path forward, as I
suggested earlier, where we can recommend that the Town Council hear the item on the 19th, understanding that we may get more information. But if HCD on December 1st says yes you are in compliance, I would not want the Planning
Commission to be the body that’s holding up Town Council being able to hear this, and we will be if we don’t
recommend to Town Council tonight, so in my mind I’m
separating the task before us into making a timely
recommendation to Town Council that will be after the
Planning Commission has an opportunity to see the HCD
comments, as well as public, as well as Council, as well as anyone, and I would feel more comfortable.

Assuming HCD says yes you’re in compliance, I
think that’s fine, end of story. If HCD says on December 1st that we have work to do yet, I think we should reconvene the Planning Commission or Housing Element Advisory Board,

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whatever is appropriate, in order to be able to process that information and make recommendations going forward.

I feel like we can separate this and still
provide a timely path for Council should the letter on
December 1st be favorable, but provide a backup in case it’s not so that the Planning Commission can review the
information provided.

CHAIR BARNETT: That sounds like the possible
elements of a motion, but I’ll ask other Commissioners if they have comments? Commissioner Hanssen.

COMMISSIONER HANSSEN: As you all know, I was
chair of the Housing Element Advisory Board, and we may or may not be meeting again, I’m not sure.

As mentioned earlier and as mentioned by
commenters, this is a very difficult situation to be in, to try to make a recommendation on something when we know two days later that we’re going to get a letter from HCD. I wanted to point out a couple of things.

One thing that’s really important is irrespective
of whatever decision was made before to hire other
consultants that might not have been as effective, I’ve been very impressed with the work that Veronica Tam and her team have done with Staff to move the Housing Element
towards the finish line, and when that decision was made to

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hire her the Housing Element Advisory Board, when we had discussions about it, felt that she had the best path
forward to know how to take this thing over the finish line versus the members of the Housing Element Advisory Board who had less experience working with HCD; we don’t interact directly with HCD at all in our role, and so I think that’s important, that she’s been very integral to this process over the last few months.

When I look at the progress of the document, we
never have had any comments from HCD that our sites
inventory isn’t adequate; they just wanted more information on how to develop it. This new law with AFFH has been
particularly difficult to deal with, but because of
Veronica Tam’s experience with other jurisdictions she has a clear directive of how to answer all those questions and do all the analysis that is required.

That being the case though, I do remain very
uncomfortable with making a recommendation to approve
something when I know that two days later it could be one or the other and we have no assurances from anyone that HCD will or won’t go forward. We can hope. As I said, the
document is in the best shape that it’s been in in a long time.

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One change that was made in the sites inventory
that I don't know if everyone has been able to observe; we had gotten comments on the 15th. There was a time in this process earlier this year when it was thought that we could add in some sites from the previous cycle, and now there has been more clarity to take some of those out because of the date that you had to count, which I believe was June 30th of 2022, and it had to be after that date.

When those sites were added back in we had quite
a bit of a larger buffer relative to our State mandated numbers, and we did get a lot of comments from the public saying that they were very uncomfortable with having more numbers of units planned for, and now those numbers have been backed out as expected and directed by HCD so that our current sites inventory numbers and buffer to RHNA is
actually right in the range of what was always expected, which was a 15-20% buffer over the RHNA of 1,993 units.

That being the case, there have been a lot of
questions from the Los Gatos Community Alliance about
projects that are in the sites inventory, and I believe Staff did answer all of those. I read all the materials. I had looked through and saw that Staff did address those concerns about no net loss and when that would be
recognized, and some of the other concerns.

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But I do remain concerned about making a
recommendation on something when we know that two days from now it could be one or the other, so it’s going to be a scenario of we would go forward and HCD says yes, or they say no, or we continue and they say yes or say no, and the optimal circumstance would be we would go forward and they would say yes, and then everything would be fine and Town Council could go ahead, but we don’t know if that is
possible.

I do like Commissioner Janoff’s suggestion about
modifying how we would approve it. I think that might be better than continuing it and pushing it out into the new year, because there is more of a risk of the additional Builder’s Remedy applications.

CHAIR BARNETT: Thank you. Other Commissioners?
Commissioner Burnett.

COMMISSIONER BURNETT: A question for Staff,
thank you. What would happen if the Planning Commission did not vote to move it forward to the Town Council?
ATTORNEY WHELAN: We just need a recommendation
one way or the other, and so the recommendation can be yes we recommend approval, or we don’t recommend approval. The law just requires that the Planning Commission make a
recommendation.

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COMMISSIONER BURNETT: What would be the
consequence?
ATTORNEY WHELAN: It would continue on to the
Town Council ultimately for a decision as to whether or not to adopt the Housing Element.

COMMISSIONER BURNETT: So the Town Council does
not need our recommendation for them to move forward with it?
ATTORNEY WHELAN: They need a recommendation in
front of them to consider, and the recommendation can be either for approval or rejection.

I just wanted to follow on about the discussion
of having the item returned to the Planning Commission.

Just so the Planning Commission is aware, that would mean that we would be back on the schedule of being in front of the Town Council in January, just as a point of
information.

CHAIR BARNETT: Commissioner Janoff.

COMMISSIONER JANOFF: Just to clarify, if we were
to recommend Town Council approval with the condition that Planning Commission meets if HCD provides a negative
response on December 1st, are you saying that…
ATTORNEY WHELAN: Yes, because we need the
Planning Commission’s recommendation to the Town Council,

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and so that would necessitate a return to the Planning
Commission, meaning that the Town Council would most likely meet on the Housing Element in January.

COMMISSIONER JANOFF: But if the Planning
Commission should vote to recommend Town Council adopt this draft of the Housing Element with the condition… I guess that would be the problem is the condition, so there’s no opportunity for the Planning Commission to reconvene if the response from HCD is negative without restarting the clock and pushing things out into January; that’s what I’m
hearing.

ATTORNEY WHELAN: Right.

JOEL PAULSON: Through the Chair, I would just
add that if we get additional comments on December 1st and we are going to have to make revisions we ultimately are going to have to come back through seven-day review of
those revisions, the Planning Commission for a
recommendation, and then Council for another adoption.

I think the one opportunity this provides, and
the Town Attorney can correct me if I’m wrong, is even if we get comments on December 1st that need to be addressed, we imagine there will be far less of them than are
currently in the most recent draft matrix, and so that
would give an opportunity for the Council to… Even though

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it might not be the final version, they could be adopting a Housing Element that is much more in substantial compliance than the currently adopted one that was adopted in January.

I don't know if the Town Attorney has any additional
comments on that.

ATTORNEY WHELAN: No, but it looks like there’s a
question.

COMMISSIONER JANOFF: Are you saying that
Planning Commission could recommend to Council to adopt the Housing Element November draft, and HCD comments coming to Staff on December 1st could indicate additional work, and Council could consider additional comments if Staff
provides responses to HCD on those?
JOEL PAULSON: No, it would have to go through
the same process, so Staff and the consultant would prepare revisions to address those comments in the December 1st letter, and then once those are prepared and completed they would be circulated for the seven-day review period, then we would come back to Planning Commission and you would make a recommendation to Council, so it’s just an
additional cycle, but this could potentially provide some benefit for a more substantially compliant Housing Element being in place in that December timeframe, but ultimately

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obviously that’s a Planning Commission/Town Council
decision.

COMMISSIONER JANOFF: Just to make sure I’m
clear. There is no downside to recommending Council adopt, because there are likely to be changes in more cycles. The purpose for recommending adoption is in case HCD comes back with you’re in compliance, then Council can go forward with a formal adoption of a certifiable Housing Element.

ATTORNEY WHELAN: That’s a good summary of the
issue that’s before the Planning Commission.

CHAIR BARNETT: I have a question for Mr.

Paulson. If I heard you right you said that the latest
submissions did trigger a 60-day public comment period? JOEL PAULSON: That’s technically correct,
however, our reviewer has provided this opportunity for this interim where he provided the interim matrix, and so he had previously committed—which we’re hoping he’s going to stand by—that he will incorporate that into his December 1st letter, so that is our hope. Obviously we won’t know until we see the letter on the 1st, but technically because it is a formal submittal it does trigger a 60-day review, however, that is not our understanding of how they’re going to review this at this point.

CHAIR BARNETT: I see. Commissioner Janoff.

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COMMISSIONER JANOFF: I just want to make sure I
heard you correctly. It’s not a 60-day public review; it’s a 60-day HCD review?
CHAIR BARNETT: I think I misspoke. Thank you.

COMMISSIONER JANOFF: Okay, thank you.

CHAIR BARNETT: Other comments? Let me make sure
I understand what’s being said so far, that if we were to make a recommendation to the Town Council to approve the November 16th and 27th submissions, that in the event HCD has material changes to that it would of necessity come back to the Planning Commission again.

JOEL PAULSON: That’s correct.

CHAIR BARNETT: In light of that, could we have a
motion? Commissioner Janoff.

COMMISSIONER JANOFF: In light of that, which is
pretty important, I think, I move to recommend that the Planning Commission recommend the Town Council adopt the Housing Element Draft that was officially submitted to them on November 28, 2023.

JENNIFER ARMER: And if you could please
reference the resolution that was provided to you in the addendum report?
ATTORNEY WHELAN: The motion would be to adopt a
resolution recommending approval.

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COMMISSIONER JANOFF: So stated.

VICE CHAIR RASPE: Through the Chair, do we have
to add a qualification then about the HCD’s response that if they respond with further changes that will trigger some further action as part of the motion?
JENNIFER ARMER: Staff would recommend that this
be a clean recommendation adoption of the resolution as written with the understanding that if there are
significant comments that require additional revisions that we would go through the required process.

VICE CHAIR RASPE: Thank you.

CHAIR BARNETT: Is Staff suggesting that we
specifically refer to the form of the resolution that was included in the Staff packet?
JENNIFER ARMER: Yes, adoption of the resolution
that has been provided does include the specific references to the November draft.

JOEL PAULSON: And for the record, that’s Exhibit
6, I believe.

CHAIR BARNETT: Does the maker of the motion
include that?
COMMISSIONER JANOFF: Yes, I think it has been
included, but thank you.

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CHAIR BARNETT: Thank you. Do we have a second?
Vice Chair Raspe.

VICE CHAIR RASPE: I’ll second the motion.

CHAIR BARNETT: Is there discussion? If not, I’ll
call the question. Those in favor, raise you hand. Oh, I’m sorry. Commissioner Hanssen.

COMMISSIONER HANSSEN: I’m very uncomfortable
with this process. I think I’ve already said this, and I was okay if we can make a recommendation subject to the HCD approval, but I don’t think I’m okay with making a
recommendation on something when who knows what’s going to happen on Friday, so I don’t know if I can vote for it.

CHAIR BARNETT: Commissioner Janoff.

COMMISSIONER JANOFF: Thank you. I think based on
what we just heard from Staff that we will have the
opportunity to see HCD comments if they are asking for
additional input from the Town, we’ll have that
opportunity. The recommendation effectively assumes HCD comments… In order for the recommendation to go fully
forward to Council it presumes that the response on
December 1st will be a positive response, a you’re in
compliance response; that’s what it assumes.

I agree that the process is not ideal, it has
been confusing, and it is because we have this timeframe of

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Council meeting and it’s the end of the year and we have limited meetings to go forward with this, and the noticing challenges of having weeks in order to make sure that the public is aware of what’s on Council agenda, really boxes us in.

But as I said before, this recommendation to
adopt the resolution presumes HCD will be positive, because we know that if HCD’s response on December 1st is send us more information, then Council won’t… Well, I guess it
could still adopt the Housing Element knowing that there would be more work to do and more cycles to go through, so either way, it will come back to us if there’s more work to be done, and I’m comfortable with that.

CHAIR BARNETT: Commissioner Burnett.

COMMISSIONER BURNETT: My comment is as it stands
now as a Planning Commissioner I cannot recommend and adopt the adoption of the Draft Housing Element to Town Council.

To make a recommendation two days before we’re actually receiving HCD’s letter on the October 2, 2023 Housing
Element version in my view would be sort of irresponsible, and not being able to properly deliberate HCD’s comment letter would be in my opinion a violation of the Planning Commission’s fiduciary Duty of Care, so I would not be
supporting the motion.

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CHAIR BARNETT: Vice Chair Raspe.

VICE CHAIR RASPE: Thank you, Chair. My
viewpoint, I think, is largely in accordance with
Commissioner Janoff’s. I’m voting for what has been
submitted, was before us today, was submitted to HCD on the 28th; that’s what I think is encapsulated in our approval this evening. We would know what that is, and my vote is that I approve of that for Town Council. If HCD comes back with further comments that’s not part of our approval, then that becomes part of further discussion either through Town Council or through Planning Commission, but as far as what we’re approving this evening, at least with my vote, it will be let’s present it to us and Staff tonight and what has been transmitted to HCD as of yesterday; I’m
comfortable in that package. I’ll reserve further judgment in the event that HCD comes back with anything but a
positive, and so I hope that clarifies my position.

CHAIR BARNETT: I share the feeling of my fellow
commissioners that we’ve been put in a very, very difficult position tonight. It echoes back to the meeting on the 15th when we were presented the next morning with an entirely new package and matrix. It’s good that we’re making
progress on these issues, but I think the public

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perception, partly of which we’ve heard tonight, is that there is some chaos in the process.

I’m sympathetic to those who are against the
motion, because it demonstrates to the public that we are inserting a more deliberate and focused consideration of the issues rather than presenting the scenario where HCD comes back with something negative in two days and then we’ll have to revisit, where as today we’re seeming to
approve it. That doesn’t sit well with me in terms of
public relations.

But as a practical matter, I think that the
motion makes complete sense. I think that there’s no reason to delay. There is some certain interest that we have in preventing more Builder’s Remedy applications; we already have plenty of those, so I would be in support of the
motion, and if there are no other comments we’ll take the roll. Commissioner Hanssen.

COMMISSIONER HANSSEN: Is it okay to ask more
questions? There’s a letter in the Desk Item from the Los Gatos Community Alliance in which they made several
recommendations, and one of them was partially cited by Commissioner Burnett, saying it would be irresponsible and a violation of the Planning Commission’s fiduciary Duty of Care to make any recommendation to the Town Council prior

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to receiving and properly deliberating HCD’s comment letter on the October 2, 2023 version since the new letter is
expected two days after the meeting, and they go on to say they feel that it was a mistake that we made the
recommendation on January 11th, and so on and so forth.

They made several recommendations in there, and
while Staff did respond to the comments from their letter on the 27th, there was no time to comment on this because it came in the Desk Item. What is Staff’s opinion on this
statement that it’s an irresponsible violation of our
fiduciary Duty of Care to make this recommendation?
ATTORNEY WHELAN: From my perspective the
Planning Commission is being asked to decide whether the revised Draft Housing Element that’s been presented to the Planning Commission substantially complies with all the government code requirements, and so if a Planning
Commissioner is able to make a decision that it does, then that’s not a violation of the Planning Commissioner’s
fiduciary duty.

COMMISSIONER HANSSEN: Okay.

CHAIR BARNETT: We still have a motion on the
table. Does the resolution that is on the table for
approval include the findings in terms of compliance on all Housing Element requirements?

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ATTORNEY WHELAN: Yes.

CHAIR BARNETT: Okay, I thought so. Any further
discussion? Commissioner Hanssen.

COMMISSIONER HANSSEN: I have one other question.

I do appreciate all the analysis that Staff has done; I want to make sure I say that. The response in the matrix is excellent, it looks to me like everything is covered, and then there was the statement that was submitted a couple of days ago from Staff about all the things with the State law, but the problem that I have with that is it’s coming from us relative to our work versus HCD, which has been holding this over not just our heads, but over other
jurisdiction’s heads. So we can say it’s in substantial compliance based on our opinion, but it’s really HCD that’s going to make the ultimate recommendation, so it seems like a hollow kind of recommendation, because we have these
charts that are coming from us, not from HCD.

CHAIR BARNETT: Commissioner Janoff.

COMMISSIONER JANOFF: While it’s true that the
matrix has been prepared by Staff, it’s been deeply
informed by our expert consultant, and so I do respect that the work of Ms. Tam and her team is foundationally aware and informed of these metrics of compliance, and I’m
comfortable that that oversight that the compliance matrix

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has presented—which is excellent by the way, it’s exactly what I was hoping to see—satisfies for me that the document is in substantial compliance, and not just because it’s been self-developed, but it has had external review.

CHAIR BARNETT: Thank you. Other discussion? I
don’t see anything, so I’m going to call the question on the motion. Those in favor, raise your hand, please. And those against? So the motion passes 5-1.

JENNIFER ARMER: The vote was 4-1, for the
record, with Commissioner Burnett voting no.

CHAIR BARNETT: Thank you. That’s not the first
time I’ve miscounted.
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STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
December 1, 2023
Joel Paulson, Director
Community Development Department
Town of Los Gatos
110 E Main Street
Los Gatos, CA 95030
Dear Joel Paulson:

RE: Town of Los Gatos’ 6th Cycle (2023-2031) Revised Draft Housing Element Thank you for submitting the Town of Los Gatos’ (Town) revised draft housing element received for review on October 2,2023, along with revisions received on November 28,2023.

These revisions were made available to the public for at least seven days prior to submitting to HCD pursuant to AB 215 (Chapter 342, Statutes of 2021). Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. Our review was facilitated by a conversation on November 7, 2023 with yourself, Jennifer Armer, Planning Manager, Jocelyn Shoopman and Erin Walter, associate planners, and Veronica Tram, the Town’s consultant. In addition, HCD considered comments from Los Gatos Community Alliance, Rutan and Tucker, Phil Koen, Eric S. Phillips, and Anne Paulson pursuant to Government Code section 65585, subdivision (c).

The revised draft element, including revisions, addresses many statutory requirements; however, revisions will be necessary to substantially comply with State Housing Element Law (Gov. Code, § 65580 et seq) as follows:

1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).)
Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics... (Gov. Code, § 65583, subd. (c)(5).) Income and Racial Concentration Area of Affluence (RCAA): The element now includes actions to promote an inclusive community; however, the element must ATTACHMENT 11 Page 1765
Joel Paulson, Director

provide specific analysis of income and RCAA at a regional level (town compared to the broader region) to better formulate appropriate policies and programs. 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.

Contributing Factors to Fair Housing Issues: Based on a complete analysis, the element should re-assess and prioritize contributing factors to fair housing issues. For example, the Town is wholly a RCAA, highest resource and highest median incomes in contrast to the rest of the region. As a result, fair housing issues such as the lack of affordable housing and segregation from the rest of the region should be a high priority.

Goals and Actions: As noted above, the element must include a complete analysis of affirmatively furthering fair housing (AFFH). The element must be revised to add goals and actions based on the outcomes of a complete analysis.

In addition, while the element includes some actions toward AFFH and enhancing housing mobility (e.g., choices and affordability), actions should be added, numeric targets should be increased, and geographic targeting should be fine-tuned to better promote inclusive neighborhoods throughout the Town. This is particularly important since over 80 percent of the lower-income regional housing need allocation (RHNA) is isolated in two census tracts. As noted in HCD’s prior review and the assessment of fair housing, the Town is wholly a racially concentrated area of affluence, highest resource and highest median incomes in contrast to the rest of the region.

These conditions and circumstances warrant significant and robust actions (not limited to the RHNA) to promote housing mobility and increasing housing choices and affordability throughout the Town, including lower-density neighborhoods.

Actions should be added and revised with aggressive numeric targets and geographic targets throughout the Town, including lower-density neighborhoods.

Examples include creating more housing choices and affordability in single-family neighborhoods beyond complying with law (e.g., SB 9, ADUs) such as missing middle housing types, targeting affordable housing funding, homesharing, more than one unit of converted space within a single-family structure, increased multifamily capacity, enhanced efforts on religious institutional sites and other alternative land use and financing strategies.

2. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for

Joel Paulson, Director

a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).) Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory… (Gov. Code, § 65583, subd. (c)(1).) Small Sites: The element identifies several sites with parcels less than a halfacre (p. D-13) that have common ownership and, in some cases, expressed interest to redevelop the site. For small sites with expressed interest in redevelopment, the element should clarify that the expressed interest is also in consolidating the sites. For the remaining sites (Sites D-2 and D-5), the element should explain the circumstances leading to the potential for consolidation such as necessity to consolidate due to access, feasibility, shape, or site planning flexibility. Based on the outcomes of this analysis, the element should add or modify Program K (Lot Consolidation) to further promote lot consolidation, if appropriate.

Electronic Sites Inventory: For your information, while the Town has submitted an electronic sites inventory as part of this submittal, pursuant to Government Code section 65583.3, the Town must submit an electronic sites inventory with its adopted housing element. Please see HCD’s housing element webpage at https://www.hcd.ca.gov/planning-andcommunity-development/housing-elements for a copy of the form and instructions. The Town can reach out to HCD at [email protected] for technical assistance.

Adequate Sites Programs: As noted in the prior review, if necessary to make appropriate zoning available to accommodate the lower-income RHNA, programs must be revised to meet all requirements pursuant to Government Code section 65583.2, subdivisions (c), (h) and (i). The element includes Programs D (Program By Right Zoning Text Amendment to Accommodate RHNA), AR (General Plan Amendment) and AS (Adequate Sites for Housing) to address these requirements. With respect to sites identified in prior planning periods, the element meets statutory requirements, but these actions must be completed by January 31, 2024. With respect to a shortfall of adequate sites to accommodate the lower-income RHNA, the element includes Programs AR and AS. However, the Programs commit to the appropriate zoning given the rezoning occurs after the statutory deadline of January 31, 2023. HCD understands the Town completed the rezoning after the statutory deadline and, therefore, the rezoning must meet all by right requirements pursuant to Government Code section 65583.2, subdivisions (h) and (i). Based on a cursory review, the rezoning does not appear to meet these requirements. As a result, these programs must clearly commit to meet all by-right requirements by January 31, 2024.

Joel Paulson, Director

In addition, please be aware, the recent California appellate decision in Martinez v. City of Clovis found that while overlays can be used in a rezone, when the base zone allows residential development, both the base zone and the overlay zone must comply with the minimum density requirements of Government Code section 65583.2, subdivision (h). The Town may need to adjust its rezoning strategy if the underlying zoning for sites that will be rezoned allows minimum densities less than 20 dwelling units per acre. Martinez v. City of Clovis (2023) 90 Cal.App.5th 193, 307 Cal.Rptr.3d 64.

3. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures... (Gov. Code, § 65583, subd. (a)(5).) Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities…(Gov. Code, § 65583, subd. (c)(3).) Land Use Controls: HCD’s prior review found that the Town must list and evaluate development standards in the North Forty Specific Plan and High Density Residential and Commercial designation. In response, the Town has now listed development standards by each zoning district but should also analyze those development standards for impacts on housing supply and cost and most importantly, the ability to encourage maximum densities without exceptions. For example, lot coverages, heights, and setbacks in the Multifamily Residential (RM) zone; and lot coverage heights and guest parking requirements in the North Forty Specific Plan could be constraints. Based on the outcomes of a complete analysis, the element should add or modify programs to include specific commitment to review and revise these development standards as necessary.

Local Processing and Permit Procedures: The element now discusses decisionmaking bodies and lists approval findings for the Architecture and Site Application. However, the element should also analyze these processes to better inform programs to address identified constraint. For example, the element mentions the decision-making body depends on the scope of the application. The element should explain the scope, resulting decision-making body and impacts on approval timing and certainty. In addition, the element lists approval findings and concludes some findings may be constraints then modifies Program AQ (Zoning Code Amendments) to amend approval findings (considerations). But the

Joel Paulson, Director

element should discuss which approval findings may be constraints to better inform implementation of Program AQ.

Programs: As noted above, 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. In addition, programs should be revised, as follows:
• Program D (Additional Capacity for the North Forty Specific Plan): The Program should also commit to establish or modify development standards to facilitate achieving maximum densities, regardless of the level of affordability and should specify to either remove the unit cap or increase the unit cap to allow maximum build out of each parcel, including State Density Bonus Law or other circumstances that might warrant increasing allowable densities.
• Program V (Housing opportunities for Persons living with Disabilities):

Given the importance of promoting housing access for persons with disabilities, the Program could be modified with a date earlier in the planning period (e.g., by December 2024).
• Program AA (Reduce Parking Standards): The Program currently commits to “Initiate a study to determine specific updates…” While initiating a study and making a determination are important steps by themselves, these actions do not result in outcomes. The Program should clearly commit to amending the municipal code. For example, the Program could commit to:
“Initiate a study and outreach, including with developers, and amend the Municipal Code, as follows:…”
• Program AQ (Zoning Code Amendments): The Program commits to apply the Housing Element Overlay Zone (HEOZ) to identified sites and modify development standards. HCD understands this action has been completed. Based on a cursory review of the Town’s Ordinance 2347, some development standards such as heights may be a constraint on achieving maximum densities. As a result, this Program should commit to monitor and evaluate these development standards, including outreach with the development community, and making adjustments, as appropriate, by a specified date.
• Program AW (Story Poles and Netting Policy): While the Program now commits to revise Story Poles and Netting Policy Requirements; these requirements are constraints and impact housing costs; supply (number of units) and approval certainty and should be removed or replaced with cost effective measures to promote certainty for the developers and the community. Further, the element should evaluate the effectiveness of any future requirements or measures, and making adjustments, as necessary, by a specified date (e.g., by 2028).

Joel Paulson, Director

4. Develop a plan that incentivizes and promotes the creation of accessory dwelling units that can be offered at affordable rent... (Gov. Code, § 65583, subd. (c)(7).) Program Q Accessory Dwelling Units (ADU): While the Program now commits to amend the ADU Ordinance, it must also commit to establish incentives such as modifying development standards (e.g., heights), pursuing funding; waiving fees beyond ADU law; proactive marketing and establishing points of contact to ease permitting processes. In addition, the Program commits to monitor production and affordability of ADUs annually but should also commit to making adjustments by a specified date (e.g., within six months) if production and affordability are not meeting assumptions. Further, the Program should clearly commit to options beyond incentives such as rezoning if production and affordability far differs from assumptions.

5. Local governments shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the Housing Element, and the element shall describe this effort. (Gov. Code, § 65583, subd. (c)(9).)
Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the Town should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD. HCD particularly encourages the Town to continue engaging commenters on this review. These comments contained valuable insights that can result in a more effective housing elements, especially related to programs and specific commitment. HCD’s future reviews will continue to consider the extent to which the revised element documents how the Town solicited, considered, and addressed public comments in the element. The Town’s consideration of public comments must not be limited by HCD’s findings in this review letter.

The element will meet the statutory requirements of State Housing Element Law once it has been revised and adopted to comply with the above requirements pursuant to Government Code section 65585.

For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), as the Town failed to adopt a compliant housing element within 120 days of the

Joel Paulson, Director

statutory deadline (January 31, 2023); programs to rezone and make prior identified sites available or address a shortfall of capacity to accommodate the RHNA (e.g., Program D: Program By Right Zoning Text Amendment to Accommodate RHNA, Program AR: General Plan Amendment, Program AS: Sites Previously Identified) must be completed no later than one year from the statutory deadline. Otherwise, the local government’s housing element will no longer comply with State Housing Element Law, and HCD may revoke its finding of substantial compliance pursuant to Government Code section 65585, subdivision (i).

Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant, the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities program, and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the Town will meet housing element requirements for these and other funding sources.

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

HCD appreciates the commitment and cooperation the housing element update team provided during the update and review. HCD is committed to assisting the Town in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Jose Armando Jauregui, of our staff, at [email protected].

Sincerely,
Paul McDougall
Senior Program Manager

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From: Phil Koen < >
Sent: Friday, September 29, 2023 1:45 PM
To: Joel Paulson <[email protected]>; Laurel Prevetti <[email protected]>; [email protected] <[email protected]>; [email protected] <[email protected]>; Gabrielle Whelan <[email protected]> Cc: < >; Rick Van Hoesen ( )
< >
Subject: 7 day comment period - draft Housing Element
Dear Mr. Paulson,
At last night’s HEAB meeting, Staff made the statement that it was appropriate to credit the 6th cycle RHNA with units that are made available during the RHNA projection period (June 30, 2022, through January 31, 2031). The Staff referenced page 5 of the HCD Site Selection Guidebook as the authority for doing this. In reviewing page 5 (which is attached), the referenced language appears under the heading “Pending, approved, or permitted development”.

On Table 10-3 (attached) there is a line item which is labeled “pipeline projects” which is described as “residential development applications that have either been approved or are currently under review and are expected to be built during the 2023-2031 planning period”. This totals 191 housing units.

Comparing this language to the HCD Site Selection Guidebook, it appears the line item fits with the Guidebook’s description for “pending, approved, or permitted development”.

There is another line item in Table 10-3 which is labeled “entitled/permitted/under construction/finaled since June 30, 2022, to January 31, 2023”. This totals 227 units, which included 49 very low-income units. All these units appear to have been permitted before the current RHNA production period, which commenced on June 30, 2022. This is substantiated by the 2022 Annual Element Progress Report (which is attached) which shows in addition to the 49 low-income units recorded in 2020, 75 above moderate units were recorded in 2021, 185 above moderate units were recorded in 2021 and 145 above moderate units were recorded in 2022. Many of these units are attributed to parcel APN 424-07-100 which is the North 40 Phase 1 (refer to Table D-7 and the 20220, 2021 and 2022 Annual Element Progress Reports).

The date of production is triggered by the permitting date, not the completion date.

As such, it does not appear that any of these 227 units qualify as a credit toward the 6th cycle RHNA because they were permitted prior to the June 30, 2022, commencement date. Additionally, all these units have been recorded against the 5th cycle RHNA, and are being double counted.

In closing I have attached a memorandum from HCD to ABAG dated January 12, 2022 (also attached) which substantiates the above statement. This memo makes it clear that RHNA credits toward the 6th cycle only apply for “new units approved, permitted and/or built beginning from the start date of the RHNA projection period June 30, 2022”.

We would recommend that Table 10-3 be amended by eliminating all 227 units identified as “entitled/permitted/under construction/finaled” and thus avoid doubling counting these units in both the 5th and 6th cycles.

Thank you,
Phil Koen
ATTACHMENT 12

From: Anne Paulson < >
Sent: Friday, September 29, 2023 1:40 PM
To: [email protected]; Housing Element <[email protected]> Subject:
29 September 2023
Dear Town of Los Gatos and HCD reviewers,
I’ve reviewed the Town of Los Gatos’ latest revision of their Housing Element. Its Site Inventory is strong:
it is composed of properties where the site owner has expressed interest in building, and those sites are to be upzoned. Unfortunately, the Programs section and the plans to Affirmatively Further Fair Housing are underpowered, and the Below Market Priced Housing Program seems to be far underfunded for the actions that are proposed.

Programs
In general, the Programs section of the Los Gatos draft Housing Element is weak. Instead of committing to actual reforms with listed timelines, the document merely says Los Gatos might do something, employing words like “consider,” “study,” “pursue opportunities.” Program E, Affordable Development on Town-Owned Property. The Town says it will make an “ongoing effort” to “pursue opportunities” for affordable housing on Town-owned properties.

This is a commitment to nothing. If the Town wants to build housing on its own property, it merely has to commit to a date where the Town will release the RFP for affordable developers, and it should do so.

Program G, Study Detached Single-Family Condominium Option. The Town commits to “study[ing]” a new floor area ratio (FAR) standard for multifamily development for detached condos by December 2024, but not actually changing anything. It’s not clear what problem this is supposed to solve. Apparently the FAR is thought to be too small for these units. If that is so, instead of studying the issue with no promise about doing anything, the Town should commit, right in the housing element, to increasing the FAR, by a specified amount, by a date certain.

The time for study is over; that’s what the planning period was for. Housing Elements should have actions, with deadlines.

Program J, Small Multi-Unit Housing. The Town commits to updating the Zoning Code to facilitate low rise multi-family structures in a certain zone, but what the update might be, and why it would facilitate more housing, is absent from the document. The Town needs to commit to specific actions by specific dates.

Program O, Affordable Housing Development. The Town commits to providing incentives for affordable housing, but doesn’t commit to any particular incentives. This program needs more details, and deadlines. The Town commits to reviewing impact fees, by January 2026, but doesn’t commit to lowering them. The deadline is too far away, and the commitment to action is missing.

Program R, Density Bonus. The Town commits to amending their local Density Bonus Ordinance to conform with state law. Then the Town will “conduct a study,” which will recommend some improvements, and the Town will adopt those unspecified improvements by December 2029, at the end of the planning period. So, the Town will do nothing beyond following state law during the 6th Cycle, and then at the end of the cycle might do something unspecified.

Program T, Nonprofit Affordable Housing Providers. The Town commits to doing nothing in specific to support nonprofit affordable housing providers, beyond meeting with them once a year.

Program Y, Supportive Services for the Homeless. Again, a program that commits to nothing.

Program Z, Increased Range of Housing Opportunities for the Homeless. The Town commits to “continu[ing] to support” the County in its homeless efforts. Not with money, though, or with any other specified support. It’s unclear what the “support” is supposed to be. This is a commitment to nothing.

Program AA, Reduce Parking Standards. The town will “initiate a study to determine specific updates.” The time for study is over. The Town should list the new parking standards and the date they will be changed.

Program AQ, Zoning Code Amendments. The code revisions are specific. The text should be amended to make clear that that the rapidly approaching deadline for rezoning, January 2024, also applies to its commitment to eliminate the currently-required reviews by the Historic Preservation Committee, the Environmental Consultant, the Consulting Architect, the Consulting Arborist, the Consulting Landscape Architect, the Geotechnical Peer Reviewer, and the Consulting Traffic Consultant. The applicant currently must undergo and pay for all of these reviews.

Program AV, Senate Bill 9 Monitoring. Los Gatos’ RHNA plan calls for 96 permits for units on lots using SB 9. On page D-66 of the Housing Element, the Town writes, “Since the adoption of the Town’s SB 9 Ordinance, the Town has received a total of four Two-Unit Housing Development applications and seven Urban Lot Split applications (between January 2022 and January 2023). The applications result in a total of 13 net new housing units a year.” But housing permits are the relevant metric, not applications. A look at Table D-7, which would contain the housing recently entitled, permitted, under construction or finaled using SB 9, shows one lot with a completed entitlement of an SB 9 subdivision, and one lot where an SB 9 subdivision is being reviewed. That's all. There are no issued permits using SB 9. The town didn't issue its projected 13 new housing unit permits last year under SB 9. It issued none. Already, the Town is far behind.

For that reason, the Town should have a prompt and robust plan to replace those potentially missing SB 9 units with other RHNA units. Instead, the Town offers, ”Evaluate effectiveness of SB 9 approvals every year beginning in 2023; and identify additional incentives and/or site capacity, if needed by 2025” and “consider additional efforts to incentivize SB 9 applications and reassess and revise the overall sites strategy for the RHNA within one year through adjusting SB 9 capacity assumptions with actual permitted units, and/or identifying additional sites to expand

site capacity to the extent necessary to accommodate the RHNA.” This is not a plan; it is a notion to wait until the middle of the cycle, and then possibly make a plan, and then possibly implement the plan some time before the end of the cycle. Or maybe after the cycle ends. It’s remarkably non-committal.

The Town needs a plan now for replacing planned-for SB 9 units, to be implemented at the end of 2024 or any following year if SB 9 permits are not coming through at 12 permits per year.

Below Market Program in-lieu funding
Los Gatos has an inclusionary zoning program for multifamily homes, and in cases where the developer can’t build the inclusionary units on site, the developer instead pays in-lieu fees, which are restricted to use by the Below Market Priced Housing Program (BMP Fund). The most recently available statement for the account shows a balance of $3,698,538 as of June 30, 2022, and both it and the previous year’s statement show no revenue from fees. Evidently most developers build their inclusionary units rather than paying an in-lieu fee. Further, these fees appear to be the only source of revenue for the Below Market Priced Housing Program.

Meanwhile, the Housing Element shows the BMP Fund funding the following programs. New or expanded programs are denoted by an asterisk.

Program I, assist low income seniors with money for home repairs Program N*, subsidize extremely low income housing
Program O*, reduce fees for affordable housing development Program P*, purchase affordability covenants to create affordable units or make already affordable units more deeply affordable
Program Q, waive building fees for low income ADUs
Program AI, fund county efforts for home repairs and accessibility improvements Program AJ*, assist lower income homeowners with funding for home repairs and improvements (expansion of existing Program I?)
* = new or expanded program
The BMP Fund does not appear to be getting much ongoing funding, and several of the programs, notably N and P, would be expensive if done at a meaningful level. Program N, for example, promises to subsidize three developments which include extremely low income housing. A single unit of subsidized housing costs over a million dollars to build in the Los Gatos area; a meaningful subsidy for three different developments will cost millions of dollars.

Program P promises to purchase affordability covenants for three housing units; again, this is an expensive undertaking. And the Town is also committing to continue existing programs using the BMP Fund. The $3.7 million appears inadequate to cover what the Town says it’s going to do.

The Town needs to identify an alternative source of funding for these programs, for example by charging affordable housing fees to builders of single family homes. Moreover the Town needs to be specific about how much money will go towards Program N; otherwise the Town could give a dollar each to three different developments and claim it had satisfied its obligation.

Affirmatively Furthering Fair Housing
As is documented in the Housing Element, Los Gatos is a majority white, high income town.

Affirmatively Furthering Fair Housing (AFFH) is therefore particularly important for the Town.

The listed strategies are inadequate to the task. For AFFH, Los Gatos commits to all the strategies in the BMP program, plus:

Program A: Establish an annual meeting between staff and developers.

Program U: Continue to support the County of Santa Clara’s Continuum of Care plan. This “support” doesn’t include any money; the funding source is listed as “County CDBG.” Program V: Make some zoning changes for people with disabilities. Most of the changes are required by state law.

Program W: Rental dispute resolution program
Program X: Work with the local and regional partners to provide rental assistance for people with developmental challenges. This assistance doesn’t include money; the funding source is listed as “none required.”
Program Y: Supportive Services for the Homeless: Support (in some unspecified way that doesn’t seem to include money or transfer of property) community and nonprofit organizations, continue to fund local nonprofits with an annual grant
Program Z: Stabilize rents: The Town commits to nothing specific, merely “study[ing] and implement[ing] recommendations.”
This is not nearly enough. The Town needs substantial programs to deal with a substantial issue, and they haven’t provided them.

In the Sites Inventory, the Sites for the biggest amounts of low income housing are all located on arterials and near freeways (15500 & 16151 Los Gatos Boulevard) or near highway interchanges where two major freeways meet (14917 & 14925 Los Gatos Boulevard, 110 Knowles, 50 Los Gatos-Saratoga Road). The pleasant neighborhoods not near loud, polluted freeways and arterials do not allow denser buildings; people who are not extremely wealthy cannot live in those neighborhoods. Los Gatos has a minimum lot size, in the flatter, lower fire risk areas, of 8000 square feet, a constraint that the document doesn’t mention. Allowing denser housing on some of these lots, by for example allowing duplexes everywhere without the SB 9 restrictions, or reducing the minimum lot size, would be a way to affirmatively further fair housing.

In the Programs section, the Below Market funding programs, and Affirmatively Furthering Fair Housing, the scale of Los Gatos’ solution does not approach the scale of the problem. To get approval, the Town needs to offer more.

Sincerely,
Anne Paulson

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

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

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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

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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%

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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.

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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.

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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

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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%

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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.

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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

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Resolution 2023- December 19, 2023
DRAFT RESOLUTION 2023-____

RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS ADOPTING 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:TOWNWIDE
APPLICANT: TOWN OF LOS GATOS
WHEREAS, the California Legislature hasfound 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.) requiresthat 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; 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 ATTACHMENT 13 Page 1803
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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, 2023, and November 17, 2023, the Town posted proposed amendments to the 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

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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.

WHEREAS, the Planning Commission recommended adoption of the General Plan Amendment amending the Town’s Housing Element.

WHEREAS, this matter came before the Town Council for public hearing on December 19, 2023, and was regularly noticed in conformance with State and Town law; and WHEREAS, Town Council received testimony and documentary evidence from all interested persons who wished to testify or submit documents. Town Council considered all testimony and materials submitted, including the record of the Planning Commission proceedings and the packet of material contained in the Council Agenda Report for their meeting on December 19, 2023, along with any and all subsequent reports and materials prepared concerning this matter.

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

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

2. An Environmental Analysis was prepared for the 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 Town

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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 Attachment 2.

3. In accordance with Government Code Sections 65585(e) and (f)(1), the Town Council has considered HCD’s findings and the Planning Commission recommendation has found that the Town has proposed changes to the adopted Housing Element to substantially comply with Housing Element Law, as shown in the matrix, attached to this resolution as Exhibit A.

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 TOWN COUNCIL RESOLVES AS FOLLOWS:

The Town Council adopts 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 Attachment 1 and 2.

PASSED AND ADOPTED at a meeting of the Town Council of the Town of Los Gatos, California, held on the 19th day of December 2023, by the following vote:

PLANNING COMMISSIONERS:

AYES:

NAYS:

ABSENT:

ABSTAIN:

SIGNED:

MAYOR, LOS GATOS TOWN COUNCIL
DATE:

Town of Los Gatos Page 1
December 19, 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 A

Town of Los Gatos Page 2
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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

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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

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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

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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

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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

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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
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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

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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
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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

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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
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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
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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
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(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
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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
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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
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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

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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
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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

December 1, 2023, HCD Comments on the Draft Revised Housing Element with Staff Responses, Interim Draft Comment
Number
HCD Comment Response
#1a. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction. (Gov. Code, § 65583, subd.
(c)(10)(A).)
Promote and affirmatively further fair housing
opportunities and promote housing throughout the
community or communities for all persons regardless of
race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other
characteristics... (Gov. Code, § 65583, subd. (c)(5).)
Income and Racial Concentration Area of Affluence (RCAA):

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) to better formulate
appropriate policies and programs. 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.

Work on addressing this comment is still underway and has not been completed at this time, pending a scheduled discussion with HCD on December 13, 2023.
#1b. Contributing Factors to Fair Housing Issues:

Based on a complete analysis, the element should re-assess and prioritize contributing factors to fair housing issues. For example, the Town is wholly a RCAA, highest resource and highest median incomes in contrast to the rest of the region.

As a result, fair housing issues such as the lack of affordable housing and segregation from the rest of the region should be a high priority.

Work on addressing this comment is still underway and has not been completed at this time. Revisions to Appendix A will include a modified analysis and re-assessed priorities.
#1c. Goals and Actions:

As noted above, the element must include a complete analysis of affirmatively furthering fair housing (AFFH). The element must be revised to add goals and actions based on the
outcomes of a complete analysis.

Work on addressing this comment is still underway and has not been completed at this time. Revisions to the Draft Revised Housing Element will include new actions to promote housing mobility and increased housing choices and affordability within the Town.

ATTACHMENT 14 Page 1835
In addition, while the element includes some actions toward AFFH and enhancing housing mobility (e.g., choices and
affordability), actions should be added, numeric targets should be increased, and geographic targeting should be finetuned to better promote inclusive neighborhoods
throughout the Town. This is particularly important since over 80 percent of the lower-income regional housing need
allocation (RHNA) is isolated in two census tracts. As noted in HCD’s prior review and the assessment of fair housing, the Town is wholly a racially concentrated area of affluence, highest resource and highest median incomes in contrast to the rest of the region.

These conditions and circumstances warrant significant and robust actions (not limited to the RHNA) to promote housing mobility and increasing housing choices and affordability throughout the Town, including lower-density neighborhoods.

Actions should be added and revised with aggressive numeric targets and geographic targets throughout the Town,
including lower-density neighborhoods. Examples include creating more housing choices and affordability in singlefamily neighborhoods beyond complying with law (e.g., SB 9, ADUs) such as missing middle housing types, targeting
affordable housing funding, homesharing, more than one unit of converted space within a single-family structure, increased multifamily capacity, enhanced efforts on religious
institutional sites and other alternative land use and financing strategies.
#2a. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov.

Code, § 65583, subd. (a)(3).)
Identify actions that will be taken to make sites available during the planning period with appropriate zoning and
development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory… (Gov.

Work on addressing this comment is still underway and has not been completed at this time. Revisions to the Draft Revised Housing Element will include expressed interest from property owners in development of a site as a single parcel, whereas the current conditions reflect multiple parcels, describing a sites common access to parking, and a site’s shape which makes it conducive to redevelopment as a single site.

Code, § 65583, subd. (c)(1).)
Small Sites:

The element identifies several sites with parcels less than a half- acre (p. D-13) that have common ownership and, in some cases, expressed interest to redevelop the site. For small sites with expressed interest in redevelopment, the element should clarify that the expressed interest is also in
consolidating the sites. For the remaining sites (Sites D-2 and D-5), the element should explain the circumstances leading to the potential for consolidation such as necessity to
consolidate due to access, feasibility, shape, or site planning flexibility. Based on the outcomes of this analysis, the element should add or modify Program K (Lot Consolidation) to further promote lot consolidation, if appropriate.
#2b. Electronic Sites Inventory:

For your information, while the Town has submitted an
electronic sites inventory as part of this submittal, pursuant to Government Code section 65583.3, the Town must submit an electronic sites inventory with its adopted housing element.

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

N/A
#2c. Adequate Sites Programs:

As noted in the prior review, if necessary to make appropriate zoning available to accommodate the lower-income RHNA,
programs must be revised to meet all requirements pursuant to Government Code section 65583.2, subdivisions (c), (h) and (i). The element includes Programs D (Program By Right
Zoning Text Amendment to Accommodate RHNA), AR
(General Plan Amendment) and AS (Adequate Sites for
Housing) to address these requirements. With respect to sites identified in prior planning periods, the element meets statutory requirements, but these actions must be completed by January 31, 2024. With respect to a shortfall of adequate sites to accommodate the lower-income RHNA, the element includes Programs AR and AS. However, the Programs commit to the appropriate zoning given the rezoning occurs after the statutory deadline of January 31, 2023. HCD understands the Town completed the rezoning after the statutory deadline Work on addressing this comment is still underway and has not been completed at this time, pending a scheduled discussion with HCD on December 13, 2023.

and, therefore, the rezoning must meet all by right
requirements pursuant to Government Code section 65583.2, subdivisions (h) and (i). Based on a cursory review, the rezoning does not appear to meet these requirements. As a result, these programs must clearly commit to meet all byright requirements by January 31, 2024.

In addition, please be aware, the recent California appellate decision in Martinez v. City of Clovis found that while overlays can be used in a rezone, when the base zone allows residential development, both the base zone and the overlay zone must comply with the minimum density requirements of
Government Code section 65583.2, subdivision (h). The Town may need to adjust its rezoning strategy if the underlying zoning for sites that will be rezoned allows minimum densities less than 20 dwelling units per acre. Martinez v. City of Clovis (2023) 90 Cal.App.5th 193, 307 Cal.Rptr.3d 64.
#3a. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of
housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other
exactions required of developers, and local processing and permit procedures... (Gov. Code, § 65583, subd. (a)(5).) Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the
maintenance, improvement, and development of housing,
including housing for all income levels and housing for persons with disabilities…(Gov. Code, § 65583, subd. (c)(3).)
Land Use Controls:

HCD’s prior review found that the Town must list and evaluate development standards in the North Forty Specific Plan and High Density Residential and Commercial designation. In response, the Town has now listed development standards by each zoning district but should also analyze those
development standards for impacts on housing supply and cost and most importantly, the ability to encourage maximum densities without exceptions. For example, lot coverages, heights, and setbacks in the Multifamily Residential (RM) Work on addressing this comment is still underway and has not been completed at this time. Revisions to the Draft Revised Housing Element will include further analysis of the development standards and their impact on development, and whether additional policies or programs will be required as a way to incentivize a project to propose a higher density.

zone; and lot coverage heights and guest parking
requirements in the North Forty Specific Plan could be
constraints. Based on the outcomes of a complete analysis, the element should add or modify programs to include specific commitment to review and revise these development
standards as necessary.
#3b. Local Processing and Permit Procedures:

The element now discusses decision-making bodies and lists approval findings for the Architecture and Site Application.

However, the element should also analyze these processes to better inform programs to address identified constraint. For example, the element mentions the decision-making body
depends on the scope of the application. The element should explain the scope, resulting decision-making body and impacts on approval timing and certainty. In addition, the element lists approval findings and concludes some findings may be
constraints then modifies Program AQ (Zoning Code
Amendments) to amend approval findings (considerations).

But the element should discuss which approval findings may be constraints to better inform implementation of Program AQ.

Work on addressing this comment is still underway and has not been completed at this time. Revisions to the Draft Revised Housing Element will include analysis of the approval findings pursuant to Town Code and whether additional policies or programs will be required as a result. #3c. Programs: As noted above, 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. In addition, programs should be revised, as follows:
• Program D (Additional Capacity for the North Forty Specific Plan): The Program should also commit to establish or
modify development standards to facilitate achieving
maximum densities, regardless of the level of affordability and should specify to either remove the unit cap or increase the unit cap to allow maximum build out of each parcel, including State Density Bonus Law or other circumstances that might warrant increasing allowable densities.
• Program V (Housing opportunities for Persons living with Disabilities): Given the importance of promoting housing access for persons with disabilities, the Program could be modified with a date earlier in the planning period (e.g., by December 2024).

Work on addressing this comment is still underway and has not been completed at this time. Revisions to the Draft Revised Housing Element will include the suggestions outlined for each Implementation Program, in addition to a scheduled discussion with HCD on December 13, 2023, specific to Implementation Program AW.

• Program AA (Reduce Parking Standards): The Program
currently commits to “Initiate a study to determine specific updates…” While initiating a study and making a
determination are important steps by themselves, these
actions do not result in outcomes. The Program should
clearly commit to amending the municipal code. For
example, the Program could commit to: “Initiate a study and outreach, including with developers, and amend the
Municipal Code, as follows:…”
• Program AQ (Zoning Code Amendments): The Program
commits to apply the Housing Element Overlay Zone (HEOZ) to identified sites and modify development standards. HCD understands this action has been completed. Based on a
cursory review of the Town’s Ordinance 2347, some
development standards such as heights may be a constraint on achieving maximum densities. As a result, this Program should commit to monitor and evaluate these development standards, including outreach with the development
community, and making adjustments, as appropriate, by a specified date.
 Program AW (Story Poles and Netting Policy): While the Program now commits to revise Story Poles and Netting
Policy Requirements; these requirements are constraints and impact housing costs; supply (number of units) and
approval certainty and should be removed or replaced with cost effective measures to promote certainty for the
developers and the community. Further, the element
should evaluate the effectiveness of any future
requirements or measures, and making adjustments, as
necessary, by a specified date (e.g., by 2028).
#4 Develop a plan that incentivizes and promotes the creation of accessory dwelling units that can be offered at affordable rent... (Gov. Code, § 65583, subd. (c)(7).)
Program Q Accessory Dwelling Units (ADU): While the
Program now commits to amend the ADU Ordinance, it must also commit to establish incentives such as modifying
development standards (e.g., heights), pursuing funding; waiving fees beyond ADU law; proactive marketing and
Work on addressing this comment is still underway and has not been completed at this time. Revisions to the Draft Revised Housing Element will include modified language regarding monitoring and additional incentives for ADU’s if the future ADU production amounts decrease.

establishing points of contact to ease permitting processes. In addition, the Program commits to monitor production and affordability of ADUs annually but should also commit to making adjustments by a specified date (e.g., within six months) if production and affordability are not meeting assumptions. Further, the Program should clearly commit to options beyond incentives such as rezoning if production and affordability far differs from assumptions.
#5 Local governments shall make a diligent effort to achieve public participation of all economic segments of the
community in the development of the Housing Element, and the element shall describe this effort. (Gov. Code, § 65583, subd. (c)(9).)
Public participation in the development, adoption and
implementation of the housing element is essential to
effective housing planning. Throughout the housing element process, the Town should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local
government’s housing element at least seven days before submitting to HCD. HCD particularly encourages the Town to continue engaging commenters on this review. These
comments contained valuable insights that can result in a more effective housing elements, especially related to
programs and specific commitment. HCD’s future reviews will continue to consider the extent to which the revised element documents how the Town solicited, considered, and
addressed public comments in the element. The Town’s
consideration of public comments must not be limited by HCD’s findings in this review letter.

Work on addressing this comment is still underway and has not been completed at this time.

Note For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), as the Town failed to adopt a
compliant housing element within 120 days of the statutory deadline (January 31, 2023); programs to rezone and make prior identified sites available or address a shortfall of capacity to accommodate the RHNA (e.g., Program D: Program By Right N/A

Zoning Text Amendment to Accommodate RHNA, Program AR:

General Plan Amendment, Program AS: Sites Previously
Identified) must be completed no later than one year from the statutory deadline. Otherwise, the local government’s housing element will no longer comply with State Housing Element Law, and HCD may revoke its finding of substantial compliance pursuant to Government Code section 65585, subdivision (i).

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

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 12/19/2023
ITEM NO: 15

DESK ITEM
DATE: December 19, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Review and Discuss the Draft Revised 2023-2031 Housing Element. Location:

Town-Wide. General Plan Amendment Application GP-22-003.

REMARKS:

In response to Council Members’ questions, staff has provided the following responses in italics to the summarized questions:

1. Was the December 1, 2023, HCD comment letter a comprehensive review or is there a possibility that further issues may be raised?
The December 1, 2023, HCD comment letter was a comprehensive review of the Draft Revised Housing Element, as submitted to HCD on October 2, 2023, along with the modifications submitted on November 28, 2023. Based on a subsequent review by HCD, it is possible that additional issues could be raised that would require further revisions before HCD would certify the Housing Element.

2. Is HCD aware of the pending referendum of the Land Use and Community Design Elements of the 2040 General Plan, given the recent comment regarding Missing Middle Housing and multi-family development in single-family residential neighborhoods? HCD is aware of the referendum of the Land Use and Community Design Elements of the 2040 General Plan. Town staff and the Housing Element consultant met with the Town’s HCD reviewer and the HCD Senior Program Manager, Paul McDougall, on December 13, 2023, to discuss potential ways for addressing the comment, as described below. Staff anticipates providing additional revisions to the Draft Revised Housing Element to the Housing Element Advisory Board (HEAB) in mid-January for their review and consideration prior to a resubmittal to HCD.

PAGE 2 OF 3
SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: December 19, 2023
REMARKS (continued):
 Modifying Implementation Program J to create opportunities for other housing types, such as co-housing or home sharing;
 Amending the Town Code to facilitate small multi-unit housing in some of the low and medium density designations; and
 Creating a new section within Chapter 10 to summarize all of the existing opportunities available in the Town that further housing mobility through Accessory Dwelling Units (ADU) and Senate Bill 9 (SB 9).

3. Were the September and November Housing Element drafts reviewed by any appointed or elected body prior to their submission?
On September 28, 2023, at a special meeting, a motion was passed by the HEAB with a 6-1 vote, with Council Member Hudes voting no, to direct staff to submit the Draft Revised Housing Element to HCD for review following the conclusion of the seven-day review.

The Draft Revised Housing Element (September 2023) was submitted to HCD for review on October 2, 2023. Mid-cycle through the 60-day review period by HCD, staff met with the Town’s HCD reviewer on November 7, 2023, and was provided with a preliminary review matrix based on the October 2, 2023, submission. Revisions to the Draft Revised Housing Element were made by staff and the Housing Element consultant, and the Draft Revised Housing Element (November 2023) was made available to the public for a seven-day review period from November 16, 2023, to November 27, 2023.

On November 16, 2023, staff notified the Town’s HCD reviewer of the proposed revisions to the Draft Revised Housing Element based on HCD’s preliminary review matrix and the timeline of when the seven-day review period would take place. Following the seven-day review period, the Draft Revised Housing Element (November 2023) was submitted to HCD on November 28, 2023.

A mid-cycle review by HCD is not uncommon and has been utilized by other agencies within Santa Clara County; however, the mid-cycle review is dependent on the individual HCD reviewer’s workload and availability and is only helpful if it can be completed, including the required seven-day public review, prior to the end of the 60-day review period by HCD.

4. The tentative schedule is described on page 572 of the full Council agenda packet, page four of six of the staff report. Are there any reviews planned with HCD? At this time, there are no scheduled reviews with HCD.

5. Is there any reason that the Housing Element could not be reviewed at additional Council meetings in January or later?

PAGE 3 OF 3
SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: December 19, 2023
REMARKS (continued):

At the direction of the Town Council, additional reviews of the Draft Revised Housing Element by the Town Council can be scheduled in January or later.

The December 19, 2023, staff report erroneously referenced public comments received between 11:01 a.m., Wednesday, November 29, 2023, and 11:00 a.m., Thursday, December 14, 2023, in Attachment 15; however, there were no public comments that were received during the time frame.

Attachment 15 contains public comment received after 11:00 a.m. Thursday, December 14, 2023, and before 11:01 a.m. on Tuesday, December 19, 2023.

ATTACHMENTS:

Attachments Previously Received with the December 19, 2023, Staff Report:

1. Draft Revised Housing Element (November 2023), Track Change Copy

2. Environmental Analysis

3. Response Memorandum to the HCD Draft Preliminary Review Matrix

4. November 15, 2023, Planning Commission Staff Report with Exhibits 1-2

5. November 15, 2023, Planning Commission Addendum Report with Exhibit 3

6. November 15, 2023, Planning Commission Verbatim Minutes

7. November 29, 2023, Planning Commission Staff Report with Exhibits 4

8. November 29, 2023, Planning Commission Addendum Report with Exhibit 5-9

9. November 29, 2023, Planning Commission Desk Item Report with Exhibits 10-12

10. November 29, 2023, Planning Commission Verbatim Minutes

11. December 1, 2023, HCD’s Findings Comment Letter

12. Public Comments Received by HCD

13. Draft Resolution with Exhibit 1

14. Partial Interim Working Draft Response Table
Attachments Received with this Desk Item:

15. Public Comment Received Between 11:01 a.m. Thursday December 14, 2023, and 11:00 a.m., Tuesday, December 19, 2023