Los Gatos City Council
January 16, 2024

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Figure 10-3 Fair Housing Assistance Organizations, Santa Clara County Source: Los-Gatos-Housing-Resources-Guide (losgatosca.gov) Regional Segregation
 Los Gatos has a higher percentage of White residents than other jurisdictions in the Bay Area as a whole, a lower percentage of Latinx residents, a lower percentage of Black residents, and a lower percentage of Asian and Pacific Islander residents.

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 Regarding income groups, Los Gatos has a lower percentage of very low-income residents than other jurisdictions in the Bay Area as a whole, a lower percentage of low-income residents, a lower percentage of moderate-income residents, and a higher percentage of above moderate-income residents.

10.1.4 Overview of Planning and Legislative Efforts
This section provides an overview of planning and legislative efforts that provide the context for development of the 6th Cycle Housing Element.
2040 General Plan
On June 30, 2022, the Town Council adopted the 2040 General Plan and accompanying Environmental Impact Report (EIR). As of September 27, 2022, The Land Use and Community Design Elements of the 2040 General Plan are suspended pending the results of a referendum. In the interim, the Town’s 2020 General Plan Land Use and Community Design Elements will govern during the suspension period.

The update process that resulted in the adoption of the 2040 General Plan was conducted with an understanding of the changes that would be required for the next Housing Element update cycle, and with a goal of minimizing the number of additional General Plan amendments that would be required to ensure consistency between the updated Housing Element and other Elements of the General Plan. Given this recent work that resulted in the 2040 General Plan, the only Housing Element Implementation Program required to ensure consistency is Implementation Measure BG to allow the housing density suspended by the referendum mentioned above. The use of Implementation Measure BG allows the Housing Element to assume that the properties on the Sites Inventory are able to develop at the greater density levels and heights envisioned under the 2040 General Plan, regardless of the results of the referendum. In this way the Housing Element can depend on this new development capacity rather than being constrained by the referendum.

Effectiveness of Previous Housing Element
The Town of Los Gatos 5th Cycle Housing Element (2015 to 2023) identified a RHNA of 619 housing units between January 31, 2015, and January 1, 2023. As of December 31, 2022, 683 new units were added to the Town’s housing stock, achieving approximately 110 percent of the Town’s RHNA. Units affordable to moderateand lower-income households that were created during the planning period include senior rental units (North Forty Phase I), an attached condominium (Union Avenue), detached townhomes (Knowles Avenue) produced through the Town’s Below Market Program (BMP), and accessory dwelling units (ADU). See Appendix E for a complete review and analysis of Los Gatos’s 5th Cycle Housing Element (2015-2023).

New State Laws Affecting Housing
While the Town has taken steps throughout the 5th Cycle to increase housing production locally, the State passed numerous laws to address California’s housing crisis during the same period. As the State passes new legislation in the remainder of the 5th Cycle and during the 6th Cycle, the Town will continue to amend the Municipal Code; to monitor and evaluate policies and programs designed to meet State requirements; and to proactively implement new policies and programs to help increase housing production in the Town.

In 2019, several bills were signed into law that include requirements for local density bonus programs, the Housing Element, surplus lands, ADU streamlining, and removing local barriers to housing production. The Town has and will continue to implement changes required by State law, through amendments to the Los Gatos Municipal Code. The following is a summary of recent legislation and proposed Town activities that will further the Town’s efforts to increase housing production during the 6th Cycle. Please see the previous section for a discussion of AB 686 (Affirmatively Furthering Fair Housing).

Streamlining for Subdividing Single-Family Lots
Senate Bill (SB) 9, the California Housing Opportunity and More Efficiency (HOME) Act, streamlines the process for a homeowner to create a duplex or subdivide an existing lot. Any new housing created as a result of this bill must meet a specific list of qualifications that protects historic districts, preserves environmental quality and the look of communities, and prevents tenants from being displaced. This legislation will enable homeowners to provide access to more rental and ownership options for working families who would otherwise be priced out of neighborhoods.

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Incentives for Accessory Dwelling Units
AB 68, AB 587, AB 671, AB 881, and SB 13 further incentivize the development of ADUs, through streamlined permits, reduced setback requirements, increased allowable square footage, reduced parking requirements, and reduced fees. The Town has amended its regulations and procedures pursuant to State law. In addition, the Town increased the allowable floor area ratio by an additional 10 percent for development of ADUs. See Appendix C for additional information regarding the Town’s ADU program and incentives to increase ADU production and affordability.

Density Bonus Update
AB 1763 requires jurisdictions to provide a density bonus to development projects that restrict 100 percent of their units as affordable to lower and moderate-income households.

Objective Standards for Multi-Family and Mixed-Use Development Applications The Town of Los Gatos is developing objective standards for the review of multi-family housing and mixed-use development applications. This effort is in response to State legislation requiring jurisdictions to adopt objective standards and to implement them in a streamlined review of qualifying housing projects. Objective standards are defined under State law as “standards that involve no personal or subjective judgement by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal” (California Government Code, Section 65913.4). Objective standards are a powerful tool that allow communities to respond to State housing laws that are reducing local control of development. They provide an opportunity to ensure that the appearance of new development is compatible with the Town’s vision, while reinforcing objectivity in the decisionmaking process.

Low-Barrier Navigation Centers
A "Low Barrier Navigation Center" is a low-barrier, service-enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. AB 101 requires jurisdictions to allow “low-barrier navigation centers” by-right in areas zoned for mixed-uses and in non-residential zones permitting multi-family uses if the center meets specified requirements. Implementation Program BC has been included pursuant to the requirements of AB 101.

Surplus Public Land
AB 1255 and AB 1486 seek to identify and prioritize State and local surplus lands available for housing development that are affordable to lower income households. The Town has not identified surplus lands through the sites inventory analysis and will report on these lands if identified through the Housing Element Annual Progress Reports.

Accelerated Housing Production
AB 2162 and SB 2 address various methods and funding sources that jurisdictions may use to accelerate housing production.

Priority Processing
SB 330 enacts changes to local development policies, permitting, and processes that will be in effect through January 1, 2025. SB 330 places new criteria on the application requirements and processing times for housing developments; prevents localities from decreasing the housing capacity of any site, such as through downzoning or increasing open space requirements, if such a decrease would preclude the jurisdiction from meeting its RHNA housing targets; prevents localities from establishing non-objective standards; and requires that any proposed demolition of housing units be accompanied by a project that would replace or exceed the total number of units demolished. Additionally, any demolished units that were occupied by lower income households must be replaced with new units affordable to households with those same income levels.

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Housing and Public Safety
In response to SB 379, SB 1035, SB 99, and AB 747, local jurisdictions must update their Safety Element to comprehensively address climate adaptation and resilience and identify evacuation routes. These updates are triggered by any General Plan or Housing Element Update that occurs after January 1, 2014. The Town has conducted this update through its recent General Plan Update, so that it can direct future development into areas that avoid or reduce unreasonable risks, while also providing needed housing and maintaining other community planning goals.

Online Transparency
AB 1483 increases transparency for residential development project applicants. The Town of Los Gatos’ website maintains the publication of specific fee and zoning information intended to increase transparency for residential development project applications.

10.1.5 Public Participation
The primary purpose of this section is to describe the effort made by the Town of Los Gatos to engage all economic segments of the community (including residents and/or their representatives) in the development and update of the Housing Element. The 6th Cycle RHNA numbers are a significant change for all California communities, and the success of the update process is dependent on a robust, inclusive, and meaningful community outreach and engagement program. The COVID-19 pandemic has complicated community outreach efforts, but the pandemic has also catalyzed the development of new digital tools that have brought interactive engagement to a new level. The following section outlines efforts taken by the Town of Los Gatos to engage the community in the Housing Element Update process. The summary below illustrates the efforts that the Town has employed to reach the community for input and community engagement as part of the 2023-2031 Housing Element Update process to date:
 Postcards sent to all property owners and tenants in the Town for a Housing Element Update Community Meeting (17,446 in total).
 Announcements provided in the local newspaper for all Housing Element Advisory Board (HEAB) meetings, community meetings, joint study sessions, and the 30-day public review period of the Initial Public Review Draft Housing Element (Los Gatos Weekly).  19 pop-up informational tables at the Los Gatos Farmers’ Market.  Two Housing Element Update information tables at the Los Gatos Library.  Information table at the Town Community Event (Spring in the Green).  Social posts on five platforms, including Facebook, Instagram, Twitter, Nextdoor, and the What’s New page on the Town’s website for all Housing Element meetings, interactive on-line engagement, and public engagement opportunities.
 Public notices for Housing Element Advisory Board (HEAB) meetings and community meetings posted at Town Hall and the Library.
 Targeted email messaging that sends email updates to the Town’s Notify Me subscribers for the 2040 General Plan Update and Housing Element Update.
 100 Property Owner Interest Forms mailed to all property owners on the Site Inventory.  Online advertisements for each Housing Element meeting and interactive on-line engagement opportunities on the Town’s website, the Town’s General Plan Update website, and the Town’s Housing Element website.
 Use of the Balancing Act, a housing simulation tool, available on the Town’s dedicated Housing Element Update website for online public engagement.
 201 submissions to the online site surveys and 42 completions of the Balancing Act housing simulation tool.
 Seven community group meetings for the 2040 General Plan Update, including discussion regarding density and affordable housing.
 15 19 HEAB meetings held to date.

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 Town Council meeting approving the draft Site Inventory.  One community meeting hosted by the Santa Clara County Planning Collaborative for Santa Clara County municipalities.
 A public meeting hosted by West Valley Community Services; Envisioning an Inclusive Los Gatos:

Housing Element 101.
 A joint study session with the Town Council and Planning Commission to discuss housing growth options for the 2040 General Plan.
 A joint study session with the Town Council, Planning Commission, and HEAB with panelists from both market rate and non-profit developers.
 Participation in a Santa Clara County Equity Advisory Group Meeting.  Two informational meetings with the Los Gatos Democracy Tent community organization.

Staff expects to continue this level of outreach and engagement throughout the remainder of the Housing Element Update process, including: information on the Town’s website; newspaper ads; social media posts; email notifications; pop-up tables at the Farmers’ Market, library, and public events; and the website for the Housing Element Update (engagelosgatoshousing.com). Through staff’s engagement with the public at the Farmers’ Market, staff has heard community support for: housing options to meet the needs of seniors and large families; displacement prevention of existing naturally affordable housing units; housing of essential workers; and lower wage earners; and the Town incentives to attract affordable housing projects.

Housing Element Advisory Board
On August 3, 2021, the Los Gatos Town Council adopted Resolution 2021-032 establishing the HEAB to serve as an advisory board for preparation of the Housing Element Update. On September 21, 2021, the Town Council appointed four at-large members to the HEAB, which when combined with the nine members of the existing General Plan Committee (GPC), formed a 13-member oversight board.

Housing Element Website
The Town developed a focused Housing Element Update website “Engage Los Gatos Housing” to provide a forum for the Town’s online community to engage in the Housing Element Update process. The site provides an interactive place for the public to learn about and be a part of the Town’s work on housing and to help guide decision makers on the direction of future housing. This online platform has been open throughout the Town’s 6th Cycle Housing Element Update and updated regularly with key documents, key meeting dates and times, engagement opportunities, and other information.

Balancing Act Online Public Engagement
The Balancing Act tool was added on the Town’s Housing Element website to allow the public to participate and provide site selection feedback on the online platform. The Balancing Act is an online simulation-based tool for public engagement on potential housing sites. The Balancing Act provided an interactive map showing where potential housing could be placed to fulfill the Town’s RHNA.

Site Surveys Online Public Engagement
As a companion to the Balancing Act mapping tool opportunity to gather public comments about potential housing sites, surveys were made available for each individual site. The dedicated Housing Element Update website included opportunities to learn more about the Housing Element Update process and how to contribute to the process.

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Renter’s Survey
On November 15, 2022, the Town of Los Gatos published a Renter’s Housing Survey to gather input from residents who are currently renting or have a history of renting in the Town. The goal of the survey was to inform the Town on renter household’s needs and possible barriers to accessing housing. The survey was made available in English, Russian, and Spanish, and posted online at www.EngageLosGatosHousing.com.

Additionally, the survey was distributed in print throughout the Town in collaboration with West Valley Community Services (WVCS). The survey received a total of 62 responses. See Appendix B for the survey results.

Property Interest Forms
Letters were sent to owners of properties that were considered by the Town to be candidates for housing sites.

The letters included a description of the Housing Element Update process and an invitation to include their property on the Sites Inventory List.

Community Meetings
On August 25, 2021, Town staff participated with other municipalities as part of the Santa Clara County Housing Collaborative to conduct the Let’s Talk Housing meeting, a regional outreach effort. The online event introduced community participants to the Housing Element Update process. Town staff presented an introduction to the Housing Element Update and hosted breakout Zoom room discussions to learn more about community members housing experiences, needs challenges, and opportunities. There were 35 participants.

On March 2, 2022, West Valley Community Services (WVCS) hosted an online community engagement event, Envisioning an Inclusive Los Gatos: Housing Element 101. The online event provided an opportunity for the public to discuss opportunities with panelists for the Town to improve the housing community for everyone, ensuring inclusive, diverse, and affordable housing in Town. Community members, Housing Element experts, nonprofits, housing developers, and clients with experience in homelessness and affordable housing joined the conversation, discussing housing challenges, opportunities, and personal experiences. The featured panelists included:
 Ande Flower, Principal Planner at EMC Planning Group.  Alison Cingolani, Policy and Research Associate at SV@Home.  Bianca Neumann with EAH Housing.
 Two WVCS clients.

Housing Element Advisory Board Public Meetings (HEAB)
The HEAB is an advisory board created for the purposes of advising Town staff, providing a public forum for public involvement, and making recommendations to the Planning Commission and Town Council on updates to the Housing Element. The HEAB serves as an advisory body that provides input on specific tasks associated with the Housing Element Update. The role of the HEAB is to:
 Provide guidance on the development of the Housing Element Update;  Provide an additional forum for public involvement;
 Forward milestone products to Town Council;
 Review the Draft Housing Element; and
 Make recommendations to the Planning Commission and Town Council.

The HEAB meeting agendas allow for two opportunities for public comment, at the beginning and end of each meeting, to provide the public an opportunity to react to the topics proposed and discussed. The public is invited to participate and provide comments at the HEAB meetings or in writing. Meetings are advertised through social media, the Town’s website, the Housing Element Update website, newspaper advertisements, postings at Town Hall and the Library, and emails to the General Plan Notify Me list. The following meetings were held via Zoom with public participation and will continue through the Housing Element Update process.  October 21, 2021: Kickoff Meeting and Housing Element Overview.  December 16, 2021: Review and Discussion of Technical Appendices.

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 February 17, 2022: Review and Discussion of the Housing Site Inventory Analysis Process.  April 21, 2022: Review and Discussion of the Housing Element Site Inventory.  May 5, 2022: Review and Discussion of the Housing Element Site Inventory.  May 19, 2022: Review and Discussion of the Housing Element Site Inventory.  June 16, 2022: Review and Discussion of the Housing Element Draft Goals, Policies, and Programs.  July 7, 2022: Review and Discussion of the Housing Element Draft Goals, Policies, and Programs.  August 4, 2022: Review and Discussion of the Housing Element Draft Goals, Policies, and Programs.  August 18, 2022: Review and Discussion of the full preliminary Housing Element Draft.  September 15, 2022: Receive Public Comments on the Initial Public Review Draft Housing Element.  October 20, 2022: Review of the Submittal of the HCD Draft Initial Review Housing Element.  December 1, 2022: Discuss Anticipated Comments on the Town’s Draft Housing Element.  February 16, 2023: Review of HCD comments and discuss possible modifications to the Housing Element.  March 16, 2023: Review and Discuss the Town’s Revised Draft Housing Element.  June 15, 2023: Review of HCD comments and discuss possible modifications to the Housing Element.  July 20, 2023: Review draft modifications to the Town’s Draft Revised Housing Element.  August 24, 2023: Review draft modifications to the Town's Draft Revised Housing Element.  September 28, 2023: Review of the Town’s Draft Revised Housing Element.

In addition, the following groups have been invited to join the Housing Element Advisory Board Meetings:
 Los Gatos Chamber of Commerce.
 West Valley Community Services.
 Los Gatos Interfaith Community.
 Public and Private Schools.
 Los Gatos Anti-Racism Coalition.
 Los Gatos Rotary Club.
 Los Gatos Kiwanis Club.
 Los Gatos Lions Club.
 Architects, Designers, and Market and Affordable Housing Developers who typically do work within Town.  The Town’s Senior Services Committee.

The list of organizations that were contacted to participate in the Housing Element Update process is provided in Appendix F.

Joint Study Sessions
On December 7, 2021, the Town Council and the Planning Commission held a Joint Study session via Zoom to discuss housing growth options and related analyses for Planning Commission and Town Council consideration of the 2040 General Plan Update. The public was encouraged to continue to submit comments and participate in the 2040 General Plan Update, including any preferences for housing growth options.

On April 6, 2022, the Town Council, Planning Commission, and HEAB participated in a Joint Study session via Zoom titled “Nuts and Bolts of Affordable Housing.” Several residents requested that the Town Council convene a study session with the Planning Commission and HEAB to learn more about the challenges of building affordable housing, particularly the financial and legal realities. The residents provided discussion questions to the panel members. The Town Council, Planning Commission, and HEAB members had the opportunity to ask questions of panel members. The panelists included the following:
 Josh Selo, West Valley Community Services Executive Director served as moderator for the panel discussion.
 Barbara Kautz, Goldfarb Lipman Attorneys, provided the current legal landscape for Housing Elements.

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 Don Caprobres, Harmonie Park Development, provided expertise in market rate development and partnerships with affordable housing developers.
 Andrea Osgood, Eden Housing, provided hands-on knowledge of affordable housing development and working with market rate developers.
 Chris Neale, The CORE Companies, provided experience with both market and affordable housing development.

Public Hearings
On June 7, 2022, the Town Council accepted the sites in Tier 1 for inclusion in the Draft Site Inventory as recommended by the HEAB at their May 19, 2022, meeting.

On December 20, 2022, the Town Council recommended that the current version of the Draft 2023-2031 Housing Element, as submitted to HCD on October 14, 2022, be considered for adoption prior to the statutory deadline of January 31, 2023.

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

On January 24, 2023, the Town Council discussed the Town’s 2022 through 2024 strategic priorities and included affordable housing partnerships as a strategic priority for the Town.

On January 30, 2023, the Town Council adopted the 2023-2031 Housing Element with modifications to the Sites Inventory, finding that it was in substantial compliance with State law with the revised Sites Inventory Analysis and revised Sites Inventory Form.

On April 4, 2023, the Town Council reviewed and discussed the Draft Revised 2023-2031 Housing Element as submitted to HCD on March 31, 2023.

Justice, Diversity, Equity, and Inclusion
Like many other cities in the United States, Los Gatos has a history which includes racial injustice. The Town also has a long-standing commitment to being equitable and inclusive. In the last couple years, with racial justice issues at the forefront of local and national conversations, the Town has taken a more holistic approach to Justice, Equity, Diversity, and Inclusion work. The Town of Los Gatos values justice, equity, diversity, and inclusion (JEDI). The Town works proactively to ensure the rights and opportunities of everyone in Los Gatos and opposes any attempts to undermine the safety, security, and rights of any members of the community. The Town promotes equal treatment, equitable distribution of and access to resources, and engagement in issues affecting the lives of residents, workers, and visitors. The Town does not tolerate discrimination, racial injustice, or police brutality. The Town works toward realizing the values of diversity, equity, and inclusion by taking specific actions to become a more inclusive community.

In May of 2017, the Town Council affirmed a commitment to Los Gatos as a diverse, supportive, equitable, and inclusive community.

On June 5, 2020, the Town affirmed its commitment to stand in solidarity with the black community with a Proclamation from the Mayor.

On June 17, 2020, the Mayor signed the Obama Foundation’s Mayor’s Pledge, committing to review Police Department standards, report back to the community, and work on reforms.

On June 19, 2020, the Town launched a new webpage, “Becoming an Inclusive Community,” dedicated to outlining the shared values of justice, diversity, equity, and inclusion. In naming the new webpage “Becoming an Inclusive Community,” the Town acknowledged that there is work to do; and by clearly stating the commitment to inclusivity and diversity, the Town strives to take the steps needed to reach that goal. The dedicated webpage can be viewed at www.LosGatosCA.gov/Inclusivity and is kept updated on a regular basis with Town efforts and current information.

On July 30, 2020, the General Plan Update Advisory Committee (GPAC) held a special meeting to review and discuss the topics including racial, social, and environmental justice in the General Plan. As a result of this meeting, the first Element of the 2040 General Plan is a new Racial, Social, and Environmental Justice Element.

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In 2020, the Town hosted three community workshops via teleconference to foster dialogue on racial and social justice and how Los Gatos can be more welcoming for all. The three conversations covered police reform, and housing. The inclusivity webpage contains full video recordings, presentations, and other information associated with these conversations.

On June 30, 2022, the Council adopted the 2040 General Plan with a brand-new chapter: the Racial, Social, and Environmental Justice Element. This guiding Element works in conjunction with the Town’s commitment to create a more inclusive Los Gatos and provide safe spaces for all to join in conversations to shape the Town’s future.

The Town’s work to further the goals and policies stated in this new Element include: hosting community conversations; adopting Diversity, Equity, and Inclusion as an ongoing Council Strategic Priority since 2021; implementing Police reforms; working with the California Senate and Assembly on the development of Senate Bill 1100, which updates public meeting laws to provide an important balance of maintaining freedom of speech, protecting public safety, and providing protection for elected officials; and developing a formal JEDI plan with goals, action items, and timelines.

Pop-up Community Outreach
Farmers’ Market Informational Booth
Town staff hosted a 2040 General Plan Update and Housing Element Update informational booth at the Los Gatos Farmers’ Market on Sundays from 9:00 a.m. to 12:00 p.m. on the following dates:
 June 27, 2021.
 July 18, 2021.
 August 8, 2021.
 August 29, 2021.
 September 19, 2021.
 October 10, 2021.
 October 31, 2021.
 November 21, 2021.
 December 19, 2021.
 January 19, 2022.
 February 13, 2022.
 March 13, 2022.
 April 10, 2022.
 May 22, 2022.
 June 12, 2022.
 September 4, 2022.
 October 9, 2022.
 November 13, 2022.
 December 11, 2022.
 January 15, 2023.
 February 19, 2023.
 March 26, 2023.
 May 21, 2023.
 June 11, 2023.
 July 23, 2023.

The Farmers’ Market is held at the Town’s Plaza Park located in downtown Los Gatos. The informational booth has provided an opportunity for planning staff to have approximately 75 interactions with the public, answer questions regarding housing opportunities and challenges within the Town, the location of possible housing sites

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in Town, the General Plan Update and Housing Element Update process in general, and key participation opportunities. Informational handouts were provided to members of the public with links to the Town’s General Plan Update and Housing Element Update websites. Staff interacted with members of the community, including both Town residents and non-residents. Staff members will continue hosting this informational booth once a month through the end of the Housing Element Update process.

Spring Into Green Informational Booth
On April 24, 2022, and April 24, 2023, Town staff hosted an informational booth for the 2040 General Plan Update and Housing Element Update at the Town of Los Gatos’ Spring into Green event. The outdoor event celebrates Keep Los Gatos Beautiful Month, environmental sustainability, and Earth Day. The festivities included environmentally focused exhibitor booths, a tree planting ceremony, the weekly Los Gatos Farmers’ Market, family-friendly activities, food, and live music. The informational booth provided an opportunity for Town staff to answer the public’s questions regarding housing opportunities and challenges within the Town, possible housing sites in Town, the General Plan Update and Housing Element Update process and key participation opportunities. 2040 General Plan Update
On June 30, 2022, the Town Council adopted the 2040 General Plan. As mentioned above, the 2040 General Plan includes a new chapter: Racial, Social, and Environmental Justice. The Racial, Social, and Environmental Justice Element includes goals, policies, and implementation programs that encourage and support local efforts to increase participation in the local political process and to improve local conditions relative to racial, social, and environmental justice issues. The themes covered in this element lay the foundation for creating a more equitable and inclusive Town for all residents of Los Gatos. The Racial, Social, and Environmental Justice Element focuses on the empowerment of the community, and especially of the members of the community who have not been previously heard.

General Plan Update Advisory Committee (GPAC)
To help guide the update to the General Plan, the Town Council appointed a GPAC. The GPAC was composed of the Town’s General Plan Committee (GPC) and three additional residents. The GPC includes two Town Council members, three Planning Commissioners, and four residents. The GPAC served to review and discuss issues, opportunities, and the development the Draft 2040 General Plan. The GPAC held more than 35 public meetings throughout the General Plan Update process, listening to community input and contributing to the development of Land Use Alternatives, and the content of the General Plan document.

Public Participation to Affirmatively Furthering Fair Housing The Los Gatos public participation program was also responsive to AFFH, which requires local jurisdictions to conduct public outreach to equitably include all stakeholders in the housing element public participation program (see Section 10.1.3 for more complete information on AFFH).

Tribal Consultation
This public participation effort also includes formal consultation, pursuant to Government Code §65352.3, with representatives from nine Native American tribes that are present and active in Santa Clara County.

10.1.6 Public Comment
Public Comments
Comments received during the public review of the 6th Cycle Housing Element are included in Appendix I: Public Comments. Responses to public comments, where appropriate, are also provided.

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10.2 Overview of Housing Needs and Constraints
This section summarizes the housing needs of Los Gatos as determined through the comprehensive housing data assessment and analysis presented in Appendix B and serves as the basis for housing goals, policies, and implementation programs. The housing summary gives an overview of population trends: characteristics of the housing stock; housing affordability; and special needs households.

10.2.1 Introduction
The Bay Area continues to see growth in both population and jobs, which means more housing of various types and sizes is needed to ensure that residents across all income levels, ages, and abilities have housing opportunities. While the number of people drawn to the region over the past 30 years has steadily increased, housing production has stalled, due to the high cost of land, contributing to the housing shortage that communities are experiencing. In many communities, this has resulted in residents being priced out, increased traffic congestion caused by longer commutes, and fewer people across income levels being able to purchase homes or meet surging rents.

10.2.2 Los Gatos Overview
As California works to face its housing crisis, the State of California has adopted rules to ensure that the burden of housing an economically diverse and growing population is shared proportionately among all California communities. The Town is committed to meeting the housing challenge, while preserving the essential character of the community. The Town faces some of the following conditions as summarized below:
 Population growth trends in the Town are significantly lower than the County and regional rates.  The Town has more than double the County share of White population and a correspondingly smaller percent of minority populations.
 The Town has a higher share of high-income earners than the County and Bay Area.  The income gap between lower income residents and higher income residents in the Town is higher than the average value for Bay Area jurisdictions.
 Poverty rates are very low in the Town.
 The Town is a net importer of workers.
 Housing prices in the Town are extremely high. Home prices are valued at more than $2 million, and rental prices increased by 61 percent from 2009 to 2019.  The Town does not have any public housing and only a small portion of the Town contains Housing Choice Voucher usage.

Figures 10-4 and 10-5 on the following pages show the concentration of public housing buildings with less than seven units and buildings with eight to 35 units in Santa Clara County; and Housing Choice vouchers by census tract, respectively.

The remainder of this section provides an overview of the demographics, housing characteristics, and special housing needs that provide the context for Los Gatos’s 6th Cycle Housing Element Update. A more complete report on housing needs is presented in Appendix B.

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Figure 10-4 Public Housing Buildings, Partial Bay Area Region Source: California Department of Housing and Community Development AFFH Data Viewer

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Figure 10-5 Housing Choice Vouchers by Census Tract
Source: California Department of Housing and Community Development AFFH Data Viewer

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10.2.3 Demographics
Population Trends
Generally, the population of the Bay Area continues to grow because of natural growth and because the strong economy draws new residents to the region. The population of the Town of Los Gatos increased by 10 percent from 2000 to 2020, which is below the 14.8 percent growth rate of the Bay Area. In 2020, the population of the Town was estimated to be 31,439 according to the Department of Finance. The population of the Town makes up

1.6 percent of Santa Clara County.5 In the Town of Los Gatos, roughly 13.5 percent of its population moved during the past year, a number that is roughly the same as the regional rate of 13.4 percent. Table 10-2 shows population growth trends for the Town, Santa Clara County, and the Bay Area as a whole.

Table 10-2 Population Growth Trends
Geography 1990 1995 2000 2005 2010 2015 2020
Los Gatos 27,357 28,751 28,592 28,872 29,413 30,807 31,439 Santa Clara County 1,497,577 1,594,818 1,682,585 1,752,696 1,781,642 1,912,180 1,961,969 Bay Area 6,020,147 6,381,961 6,784,348 7,073,912 7,150,739 7,595,694 7,790,537 Source: California Department of Finance, E-5 series
Population by Age
The distribution of age groups in a town or city shapes what types of housing the community may need in the near future. An increase in the older population may mean there is a developing need for more senior housing options, while higher numbers of children and young families can point to the need for more family housing options and related services. There has also been a move by many to age-in-place or downsize to stay within their communities, which can mean more multi-family and accessible units are also needed.

In 2019, the median age in the Town was 47 years, an increase from the median age of 41 in 2000. The youth population of the Town under the age of 18 was 6,767 and the senior population 65 and older was 6,393. These age groups represent 22 percent and 20.8 percent, respectively, of the Town’s population. This reflects a nationwide aging trend related to the large baby boom generation, as well as local characteristics. The Town of Los Gatos is a community with a high quality of life that encourages residents to stay throughout their lives. Aging in place, attracting retirees, and high housing costs that favor older, more financially stable households all contribute to the aging trend in the Town. Figure 10-6 shows the distribution of senior and youth population by race.
5 To compare the rate of growth across various geographic scales, Table 10-2 shows population for the jurisdiction, county, and region indexed to the population in the year 1990. This means that the data points represent the population growth in each of these geographies relative to their populations in 1990. NOTE: Universe: Total population; For more years of data, please refer to the Data Packet Workbook, Table POPEMP-01.

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Figure 10-6 Senior and Youth Population by Race, Los Gatos, 2000-2019 Source: ABAG Housing Needs Data Workbook
Population by Race/Ethnicity
Understanding the racial makeup of a town, city, and region is important for designing and implementing effective housing policies and programs. These patterns are shaped by both market factors and government actions, such as exclusionary zoning, discriminatory lending practices, and displacement that has occurred over time and continues to impact communities of color today.6
Figures 10-7 and 10-8 show the population distribution by race and ethnicities in the Bay Area, Santa Clara County, and specifically Los Gatos, through the period 2000 to 2019. Since 2000, the percentage of residents in the Town of Los Gatos identifying as “White, Non-Hispanic” has decreased by 13.3 percentage points. At the same time the percentage of residents of all “Other Race of Multiple Races, Non-Hispanic” has increased. In absolute terms, the “Asian/API, Non-Hispanic” population increased the most, while the “White, Non-Hispanic” population decreased the most.

In 2019, 72.3 percent of the Town’s population was White while 0.9 percent was African American, 14.8 percent was Asian, and 7.9 percent was Latinx. People of color in Los Gatos comprise a proportion below the overall proportion in the Bay Area as a whole.7
6 See, for example, Rothstein, R. (2017). The color of law: a forgotten history of how our government segregated America. New York, NY & London, UK:

Liveright Publishing.
7 The Census Bureau’s American Community Survey accounts for ethnic origin separate from racial identity. The numbers reported here use an accounting of both, such that the racial categories are shown exclusive of Latinx status, to allow for an accounting of the Latinx population regardless of racial identity.

The term Hispanic has historically been used to describe people from numerous Central American, South American, and Caribbean countries. In recent years, the term Latino or Latinx has become preferred. This report generally uses Latinx, but occasionally when discussing US Census data, we use Hispanic or Non-Hispanic, to clearly link to the data source.

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Figure 10-7 Population by Race and Ethnicity, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
Figure 10-8 Population by Race and Ethnicity, Los Gatos, 2000-2019 Source: ABAG Housing Needs Data Workbook

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Employment
Town residents most commonly work in the Financial and Professional Services industry. From January 2010 to January 2021, the unemployment rate in the Town decreased by three percentage points. Since 2010, the number of jobs located in the jurisdiction increased by 4,440 (28.8 percent).

Additionally, the jobs-household ratio in the Town has increased from 1.32 in 2002 to 1.59 jobs per household in 2018, which means the Town has more jobs than housing. A surplus of jobs relative to residents suggests the need to import workers. Los Gatos has more low-wage jobs than low-wage residents (where low-wage refers to jobs paying less than $25,000). At the other end of the wage spectrum, the Town has more high-wage residents than high-wage jobs (where high-wage refers to jobs paying more than $75,000).

10.2.4 Household Characteristics
Extremely Low-Income Households
Despite the economic and job growth experienced throughout the region since 1990, the income gap has continued to widen. California is one of the most economically unequal states in the nation, and the Bay Area has the highest income inequality between high- and low-income households in the State.

HUD annually updates it Section 8 Program income limits to reflect changes in median family income (MFI) levels for different size households and income limits for extremely low-, very low-, and low-income households. HCD must then annually update its income limits based on HUD’s annual revisions. California law and State Income Limits reference AMI that, pursuant to Health & Safety Code 50093(c), means the MFI of a geographic area, estimated by HUD for its Section 8 Program.

In Los Gatos, 65 percent of households make more than 100 percent of the AMI 8, compared to nine percent making less than 30 percent of AMI, which is considered extremely low-income. Regionally, more than half of all households make more than 100 percent AMI, while 15 percent make less than 30 percent AMI. In Santa Clara County, 30 percent AMI is equivalent to an annual income of $39,900 for a family of four. Many households with multiple wage earners, including food service workers, full-time students, teachers, farmworkers, public safety officers, and healthcare professionals can fall into lower AMI categories due to relatively stagnant wages in many industries.

Throughout the region, there are disparities between the incomes of homeowners and renters. Figures 10-9 and 10-10 show the AMI distribution and the poverty rate among different races and ethnicities in the Los Gatos area.

Typically, the number of low-income renters greatly outpaces the amount of housing available that is affordable for these households. In Los Gatos, the largest proportion of both renters and homeowners is found in the greater than 100 percent of AMI group.
8 Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located. Households making between 80 and 120 percent of the AMI are moderate-income, those making 50 to 80 percent are low income, those making 30 to 50 percent are very low income, and those making less than 30 percent are extremely low income. This is then adjusted for household size.

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Figure 10-9 Area Median Income by Race and Ethnicity, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
People of color are more likely to experience poverty and financial instability as a result of Federal and local housing policies that have historically excluded them from the same opportunities extended to White residents.9 These economic disparities also leave communities of color at higher risk for housing insecurity, displacement, or homelessness. In Los Gatos, Hispanic or Latinx and Other Race or Multiple Races (Hispanic and Non-Hispanic) residents experience the highest rates of poverty, followed by White (Hispanic and Non-Hispanic) residents.

Figure 10-10 Poverty Rate by Race and Ethnicity, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
9 Moore, E., Montojo, N. and Mauri, N., 2019. Roots, Race & Place: A History of Racially Exclusionary Housing the San Francisco Bay Area. Hass Institute.

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Tenure
The number of residents who own their homes compared to those who rent their homes can help identify the level of housing insecurity (i.e., ability for individuals to stay in their homes) in a town, city, and region. Generally, renters may be displaced more quickly if prices increase. As of 2019, there are a total of 12,083 housing units in Los Gatos, and fewer residents rent than own their homes: 35 percent versus 65 percent. By comparison, 43.6 percent of households in Santa Clara County are renters, while 43.9 percent of Bay Area households rent their homes.

Homeownership rates often vary considerably across race and ethnicity in the Bay Area and throughout the country. These disparities not only reflect differences in income and wealth, but also stem from Federal, State, and local policies that limit access to homeownership for communities of color, while facilitating homebuying for White residents. While many of these policies, such as redlining, have been formally disbanded, the impacts of race-based policy are still evident across Bay Area communities. In Los Gatos, 84 percent of Black households owned their homes, while homeownership rates were 72 percent for Asian households, 39 percent for Latinx households, and 65 percent for White households.

In many communities, homeownership rates for households in single-family homes are substantially higher than the rates for households in multi-family housing. In Los Gatos, 86 percent of households in detached singlefamily homes are homeowners, while 13 percent of households in multi-family housing are homeowners.

Displacement
Because of increasing housing prices, displacement is a major concern in the Bay Area. Displacement has severe impacts on low- and moderate-income residents. When individuals or families are forced to leave their homes and communities, they also lose their support network.

The University of California (UC), Berkeley has mapped all neighborhoods in the Bay Area, identifying their risk for gentrification. It finds that in Los Gatos there are no households that live in neighborhoods that are susceptible to or experiencing displacement and none live in neighborhoods at risk of or undergoing gentrification.

Equally important, some neighborhoods in the Bay Area do not have housing appropriate for a broad section of the workforce. UC Berkeley estimates that all households in Los Gatos live in neighborhoods where low-income households are likely to be excluded due to prohibitive housing costs.10 Figure B-18 in Appendix B shows household displacement risk and tenure.

10.2.5 Housing Stock Characteristics
Number of Homes
The number of new homes built in the Bay Area has not kept pace with the demand, resulting in longer commutes, increasing prices, and exacerbating issues of displacement and homelessness. The number of homes in Los Gatos increased by four percent from 2010 to 2020, which is below the growth rate for Santa Clara County and below the growth rate of the region’s housing stock during this time period.

Between 2015 and 2021, 502 housing units were issued permits in Los Gatos, which represents approximately 81 percent of the RHNA number of 619 units assigned in the 5th Cycle Housing Element. Approximately 66 percent of permits issued in Los Gatos were for above moderate-income housing, 24 percent were for moderate-income housing, and 10 percent were for low- or very low-income housing.

Housing Type
It is important to have a variety of housing types to meet the needs of a community today and in the future. In 2020:
10 More information about this gentrification and displacement data is available at the Urban Displacement Project’s webpage:
https://www.urbandisplacement.org/. Specifically, one can learn more about the different gentrification/displacement typologies shown in Figure 18 at this link: https://www.urbandisplacement.org/sites/default/files/typology_sheet_2018_0.png. Additionally, one can view maps that show which typologies correspond to which parts of a jurisdiction here: https://www.urbandisplacement.org/san-francisco/sf-bay-area-gentrification-anddisplacement.

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 60 percent of homes in Los Gatos were single-family detached.  13 percent were single-family attached.
 9 percent were small multi-family (two to four units).  18 percent were medium or large multi-family (five or more units).

Between 2010 and 2020, the number of single-family units increased more than multi-family units. Los Gatos has a higher portion of detached single-family homes than other jurisdictions in the region.

The housing stock of Los Gatos is generally in good condition, and few homes require reconstruction or rehabilitation. The high quality of life, desirable location, walkable neighborhoods, and school system have provided financial incentive for property owners to rehabilitate homes and maintain them.

Home Prices
A diversity of homes at all income levels would create opportunities for all members of the Los Gatos community to live in Town.
 Ownership – The largest proportion of homes had a value greater than $2 million in 2019. Home prices increased by 98.4 percent from 2010 to 2020.
 Rental Prices – The typical contract rent for an apartment in Los Gatos was $2,270 in 2019. Rental prices increased by 61 percent from 2009 to 2019. To rent a typical apartment without cost burden, a household would need to make $90,960 per year.11
Cost Burden
The U.S. Department of Housing and Urban Development (HUD) considers housing to be affordable for a household if the household spends less than 30 percent of its income on housing costs. A household is considered “cost-burdened” if it spends more than 30 percent of its monthly income on housing costs, while those who spend more than 50 percent of their income on housing costs are considered “severely cost-burdened.” In Los Gatos, 20 percent of renter households and 16 percent of owner households spend 30 percent to 50 percent of their income on housing, while 22 percent of renter households and 12 percent of owner households are severely cost-burdened and use the majority of their income for housing.

Minority communities are more likely to experience poverty and financial instability as a result of Federal and local housing policies that have historically excluded them from the same opportunities extended to White residents.

As a result, they often pay a greater percentage of their income on housing, and in turn, are at a greater risk of housing insecurity.
“Other Race” or “Multiple Races, Non-Hispanic” residents are the most cost-burdened, with 28 percent spending 30 to 50 percent of their income on housing, and Hispanic or Latinx residents are the most severely costburdened, with 22 percent spending more than 50 percent of their income on housing.

Neighborhood
100 percent of residents in Los Gatos live in neighborhoods identified as “Highest Resource” or “High Resource” areas by State-commissioned research, while none live in areas identified by this research as “Low Resource” or “High Segregation and Poverty” areas. These neighborhood designations are based on a range of indicators covering areas such as education, poverty, proximity to jobs and economic opportunities, low pollution levels, and other factors.12
11 Note that contract rents may differ significantly from, and are often lower than, current listing prices. 12 For more information on the “opportunity area” categories developed by HCD and the California Tax Credit Allocation Committee, see this website:
https://www.treasurer.ca.gov/ctcac/opportunity.asp. The degree to which different jurisdictions and neighborhoods have access to opportunity will likely need to be analyzed as part of new Housing Element requirements related to affirmatively furthering fair housing. ABAG/MTC will be providing jurisdictions with technical assistance on this topic this summer, following the release of additional guidance from HCD.

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10.2.6 Special Housing Needs
Some population groups may have special housing needs that require specific program responses, and these groups may experience barriers to accessing stable housing due to their specific housing circumstances. In Los Gatos, nine percent of residents have a disability and may require accessible housing. Additionally, six percent of Los Gatos households are larger households with five or more people, and likely need larger housing units with three bedrooms or more. Eight percent of households are female-headed families, which are often at greater risk of housing insecurity.

Large Households
Large households, with five or more persons, often have different housing needs than smaller households. If a town or city’s rental housing stock does not include larger apartments, large households who rent could end up living in overcrowded conditions. Large families are generally served by housing units with three or more bedrooms, of which there are 7,760 units in Los Gatos, as shown in Figure 10-11. Among these large units, most are owner-occupied, and few are renter-occupied, indicating the Town’s rental housing stock lacks larger apartments.

Figure 10-11 Housing Units by Number of Bedrooms and Tenure, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
Female-Headed Households
Households headed by one person are often at greater risk of housing insecurity, particularly female-headed households, who may be supporting children or a family with only one income. Female-headed households with children may face particular housing challenges, with gender inequality resulting in lower wages for women.

Moreover, the added need for childcare can make finding a home that is affordable more challenging.

In Los Gatos, the largest proportion of households is Married-Couple Family Households at 58 percent of the total, while Female-Headed Family Households make up 8 percent of all households. Additionally, 36 FemaleHeaded Households with Children (eight percent) fell in the Below Poverty Level category, while 26 FemaleHeaded Households without Children (five percent) fell in the Below Poverty Level category.

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Figure 10-12 Percent of Children in Female Households, 2015-2019 Source: California Department of Housing and Community Development AFFH Data Viewer

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Senior Households
Senior households often experience a combination of factors that can make accessing or keeping affordable housing a challenge. Seniors, defined as persons who are 65 years or older, may live on fixed incomes and may have disabilities, chronic health conditions, and/or reduced mobility. Seniors who rent may be at even greater risk for housing challenges than those who own, due to income differences between these groups.

When cost-burdened seniors are no longer able to make house payments or rent payments, displacement from their homes can occur, putting further stress on the local rental market or forcing residents out of their community.

Understanding how seniors might be cost-burdened is of particular importance due to their special housing needs, particularly for low-income seniors. Of seniors making less than 30 percent of AMI, 74 percent are spending the majority of their income on housing. For seniors making more than 100 percent of AMI, 86 percent are not costburdened and spend less than 30 percent of their income on housing.

People with Disabilities
People with disabilities face additional housing challenges. Encompassing a broad group of individuals living with a variety of physical, cognitive, and sensory impairments, many people with disabilities live on fixed incomes and are in need of specialized care, yet often rely on family members for assistance due to the high cost of care.

When it comes to housing, people with disabilities are not only in need of affordable housing, but accessibly designed housing, which offers greater mobility and opportunity for independence. Unfortunately, the need typically outweighs what is available, particularly in a housing market with such high demand. People with disabilities are at a high risk for housing insecurity, homelessness, and institutionalization, particularly when they lose aging caregivers. Overall, nine percent of people in Los Gatos have a disability of some kind.

State law also requires a Housing Element to examine the housing needs of people with developmental disabilities. Developmental disabilities are defined as severe, chronic, and attributed to a mental or physical impairment that begins before a person turns 18 years old. This can include Down’s Syndrome, autism, epilepsy, cerebral palsy, and mild to severe intellectual disability. Some people with developmental disabilities are unable to work, rely on supplemental security income, and live with family members. In addition to their specific housing needs, they are at increased risk of housing insecurity after an aging parent or family member is no longer able to care for them.13 In Los Gatos, there are 123 persons with a developmental disability. Out of this nine percent of the Town’s population, 50 are children under the age of 18 (41 percent) and 73 are adults (60 percent). The most common living arrangement for individuals with disabilities in Los Gatos is the home of a parent/family/guardian.

Figure 10-13 Share of Population by Disability Status, 2019 Source: ABAG Housing Needs Data Workbook
13 For more information or data on developmental disabilities in your jurisdiction, contact the Golden Gate Regional Center for Marin, San Francisco and San Mateo Counties; the North Bay Regional Center for Napa, Solano and Sonoma Counties; the Regional Center for the East Bay for Alameda and Contra Costa Counties; or the San Andreas Regional Center for Santa Clara County.

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Figure 10-14 Percent of Population with a Disability by Census Tract, 2019

Source: California Department of Housing and Community Development AFFH Data Viewer

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Homelessness
Homelessness remains an urgent challenge in many communities across the State, reflecting a range of social, economic, and psychological factors. Rising housing costs result in increased risks of community members experiencing homelessness. Many residents who have found themselves housing insecure have ended up homeless in recent years, either temporarily or longer term. Addressing the specific housing needs of the unhoused population remains a priority throughout the region, particularly since homelessness is disproportionately experienced by people of color, people with disabilities, those struggling with addiction, and those dealing with traumatic life circumstances.

In Santa Clara County, the most common type of household experiencing homelessness is those without children in their care. Among households experiencing homelessness that do not have children, 87 percent are unsheltered. Of homeless households with children, most are sheltered in emergency shelters.

People of color are more likely to experience poverty and financial instability as a result of Federal and local housing policies that have historically excluded them from the same opportunities extended to White residents.

Consequently, people of color are often disproportionately impacted by homelessness, particularly Black residents of the Bay Area.

In Santa Clara County, White (Hispanic and Non-Hispanic) residents represent the largest proportion of residents experiencing homelessness and account for 44 percent of the homeless population, while making up 45 percent of the overall population.

Farmworkers
Across the State, housing for farmworkers has been recognized as an important and unique concern.

Farmworkers generally receive wages that are considerably lower than other jobs and may have temporary housing needs. Finding decent and affordable housing can be challenging, particularly in the current housing market.

In Los Gatos, there were no reported students of migrant workers in the 2019-20 school year. The trend for the region for the past few years has been a decline of more than two percent in the number of migrant worker students since the 2016-17 school year. The change at the County level is a 50 percent decrease in the number of migrant worker students since the 2016-17 school year.

10.2.7 Governmental and Non-Governmental Constraints
Housing development is affected by government regulations and other non-governmental forces, such as the cost of land and building materials and the availability and cost of housing loans. A Housing Element is required to investigate the impact of these constraints as they present themselves in the municipality in which the Housing Element is being prepared. Please see Appendix C for a full discussion governmental and non-governmental constraints in the Town of Los Gatos.

Revisions to the Zoning Code are necessary to achieve consistency with changes in State housing law.

Anticipated zoning changes are detailed in the implementation programs found in Section 10.5 6 of this Housing Element. Governmental constraints to the development of affordable housing exist in every community. The types of governmental constraints in the Town are typical of those constraints in other communities and include zoning regulations, code enforcement, on and off-site improvements, fees and exactions, processing times, and permit procedures as detailed further in Appendix C. These categories are required to protect the public’s health and safety or to provide for necessary infrastructure to support the project.

In terms of non-governmental constraints, land costs will remain a constraint to affordable housing. To help offset this constraint, programs to use Town-owned lands, such as Town parking lots could be utilized. Due to the cost of construction materials, the Town may subsidize affordable housing projects with available funds dedicated to housing in order to increase affordable housing inventory.

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10.3 Site Inventory and Opportunities
This section summarizes the housing needs of the Town as determined through the comprehensive housing data assessment and analysis presented in Appendix D and serves as the basis for housing goals, policies, and actions. The housing summary gives an overview of population trends, characteristics of the housing stock, housing affordability, and special needs households.

10.3.1 Introduction
The Plan Bay Area 2050 Final Blueprint 14 forecasts that the nine-county Bay Area will add 1.4 million new households between 2015 and 2050. For the eight-year time frame covered by this Housing Element Update, HCD has identified the region’s housing need as 441,176 units. The total number of housing units assigned by HCD is separated into four income categories that cover housing types for all income levels, from very lowincome households to market rate housing. This calculation, known as the RHNA, is based on population projections produced by the California Department of Finance as well as adjustments that incorporate the region’s existing housing need. The adjustments result from recent legislation requiring HCD to apply additional adjustment factors to the baseline growth projection from California Department of Finance, in order for the regions to get closer to healthy housing markets. To this end, adjustments focus on the region’s vacancy rate, level of overcrowding and the share of cost-burdened households and seek to bring the region more in line with comparable ones. Compared to previous cycles, these new laws governing the methodology for how HCD calculates the RHNA resulted in a significantly higher number of housing units for which the Bay Area must plan compared to previous cycles.

10.3.2 Sites Summary
The vacant, partially vacant, and underutilized sites identified in this report are sufficient to accommodate Los Gatos’ Regional Housing Needs Allocation for the 6th Cycle planning period. The sites also accommodate the recommended buffer of 15 percent above RHNA, which would equal a capacity of approximately 299 additional units. This “cushion” for capacity above the base RHNA number is highly recommended because of the State’s no-net-loss policy, which precludes jurisdictions from approving development that results in an overall housing site deficit. The “cushion” essentially provides a degree of flexibility for policy makers as they make development decisions. Many of the sites identified in this report have existing uses that would need to be demolished before new housing could be constructed.

For communities like Los Gatos that are largely built-out, bounded by hillsides with restricted developments opportunities due to fire danger, and surrounded on all sides by other communities, redevelopment and densification is the only practical solution to providing a fair share of future housing for the San Francisco Bay Area. By its nature, such redevelopment is more costly and more time consuming than building new units on vacant land. To offset these constraints, higher densities are proposed in some areas. These higher densities act as a market incentive to offset the added cost and time required to build new housing on redeveloped sites.

Property owner interest will be pivotal for facilitating single-family site opportunities and policies to add housing through SB 9, which allows for up to four units on a property zoned for single-family residences. Table 10-3 provides a summary of the number of housing units that have been produced since June 30, 2022; are projected through pipeline projects, and ADUs, and SB 9 applications; and are projected for the housing sites included in the Site Inventory for the Town of Los Gatos, and how they compare to the RHNA allocation plus a 25 percent buffer.
14 Plan Bay Area 2050 is a long-range plan charting the course for the future of the nine-county San Francisco Bay Area. It covers four key issues: the economy, the environment, housing and transportation.

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Table 10-3 Summary of Vacant and Underutilized Housing SitesRHNA Credits and Sites Strategies RHNA Credit
Affordability Credit
Very LowIncome LowIncome ModerateIncome
AboveModerate
Income
Total
Entitled/Permitted/Under Construction/Finaled
(June 30, 2022, to January 31, 2023)
- Single-Family Units and Housing Projects 049 0 02 2176 2227 - ADUs 0 3 11 9 23
Pipeline Projects 0 1 0 190 191
Projected ADUs (1/1/2023-1/31/2031) 60 60 60 20 200
SB 9 Units 0 0 0 96 96
Total 60109 64 7173 221491 41677
RHNA 537 310 320 826 1,993
Remaining RHNA 477428 246 249247 605335 1,5771,256
Housing Element Overlay Zone (HEOZ) Sites 634 357 340 624640 1,9551,971 Owner Interest/Conceptual Development Plans 480 283 264 304320 1,3311,347 Additional Sites 154 74 76 320 624
Surplus above Remaining RHNA 157206 111 9193 19305 378715 % Surplus 3348% 45% 3738% 391% 2457%
Item Very Low Low Moderate Above
Moderate Total
Total Estimated Housing for Sites in
Inventory 646 362 347 642 1,997
Accessory Dwelling Units 20 60 60 60 200
Senate Bill 9 96 96
Pipeline Projects 1 200 201
Total 666 423 407 998 2,494
RHNA 537 310 320 826 1,993
Buffer (15 %) 81 46 48 124 299
RHNA + Buffer 618 356 368 950 2,292
Difference Between Housing Estimate and
RHNA + Buffer 48 67 39 48 202
Source: EMC Planning Group, Inc; Town of Los Gatos

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

Many programs and policies reduce barriers and create opportunities for a balanced community. These goals are essential to meeting the Town’s housing needs, but are more qualitative in nature. The sites, calculated at their net, minimum density, in addition to Accessory Dwelling Unit (ADU) Projections, Senate Bill (SB) 9 Projections, Pipeline Projects, and RHNA credits for housing units that were finaled, permitted, or approved after this date, or were under construction as of June 30, 2022, have a total, net capacity of 2,3712,708 unitsThe 2,494 units that

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Los Gatos takes credit for on its Sites Inventory and are sufficient to meet the Town’s RHNA of 1,993 units.

Between Implementation Programs JI, ASAI, and AUAJ, it is assumed that 11 48 housing units will be rehabilitated, and all existing affordable units will be conserved or preserved. Los Gatos reasonably expects that a total of 2,371 2,7082,494 units will be developed, as described in the tables below:

Table 10-4 2023-2031 Quantified Objectives
Income Category New Construction Rehabilitation ConstructionConservation/ Preservation
Very Low Income 666743694 524 0 49
Low Income 423421 624 0136
Moderate Income 407413411 0 0179
Above Moderate Income 9981,131845 0 0114
Totals 2,4942,7082,371 1148 0478
Source: Town of Los Gatos
 New Construction Objective: Reflects the Town’s 2023-2031 RHNA.  Rehabilitation Objective: Reflects goal to assist a total of 11 48 very low-income and low-income households through Implementation Programs JI, ASAI, and AUAJ.  Conservation/Preservation Objective: Reflects maintaining affordability on the current inventory of 257 Below Market Price (BMP) rental units, maintaining affordability of 107 Housing Choice Vouchers, and preserving 114 existing mobile home units in the Bonnie View mobile home park and Creekside Village.

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

10.4 Energy and Resource Conservation
This section summarizes background information and actions being undertaken by the Town of Los Gatos to address energy and resource conservation. The information is excerpted from Chapter 8 (Environment and Sustainability Element) of the 2040 General Plan. For a full discussion of energy-related issues, please see Chapter 8, Section 8.6 (Energy) of the 2040 General Plan.

10.4.1 Opportunities for Energy Conservation
With the escalation in energy prices, consumers and builders have once again become more aware of energy costs. The Town must balance between development and environmental stewardship to maintain a strong economy and, at the same time, protect the environment. The following section highlights building standards and conservation codes contributing to that success.

Title 24 of the California Administrative Code sets forth mandatory energy standards for new development and requires adoption of an "energy budget." In turn, the home building industry must comply with these standards while localities are responsible for enforcing the energy conservation regulations. In 2015, the Town adopted a Solar Energy Code for the purpose of reducing energy costs for new residential developments and adopted an energy budget. In addition, State law (both the Residential Building Code and CalGreen) have standards that significantly reduce energy use in new residential construction.

Increasing energy costs, persistent drought, and climate change have reshaped how Californians think when it comes to buying new homes. Solar roof panels have become more commonplace over the past several decades, with both State and Federal tax credits available. Energy-efficient appliances and water wise landscaping have become amenities of choice for homebuyers. Developers can make the most of this paradigm shift by embracing “green” building practices that incorporate the energy and water efficiencies that consumers desire as well as environmentally friendly construction that minimizes waste and maximizes the use of resources.

Pacific Gas and Electric (PG&E) distributes electricity throughout Los Gatos, with supplies purchased from Silicon Valley Clean Energy (SVCE). PG&E supplies natural gas to the community as well. The Town is committed to its

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partnership with other local communities under the umbrella of SVCE. Through this partnership, Los Gatos residents and businesses receive carbon-free electricity at lower rates than those that arise from fossil fuel consumption. SVCE works to innovate and implement new clean energy programs and presents many of these innovations at community meetings, Earth Day events, and presentations to businesses. SVCE’s 2020 Community Benefits Summary indicates Los Gatos achieved the following results:
 $813,000 in on-bill savings for Los Gatos SVCE customers.  14,700 households and businesses served.
 99 percent reduction in electric utility-related emissions (34,897,000 pounds greenhouse gas emissions avoided by providing clean energy).
 $29,900 in cash payments to customers for generating surplus solar energy.

Achieving these goals adds to the overall GHG reduction strategy, with a focus on lowering dependence on carbon-based fuels and energy sources. Energy efficiency involves a careful balance of assessing energy sources, educating the public on home and business renewable energy use, implementing energy efficiency strategies, and encouraging and incentivizing widespread and ongoing implementation of those strategies. This in turn translates into lower ongoing costs to homeowners and renters.

10.4.2 Energy-Related Goals and Policies
As required by State housing law, the Housing Element must analyze energy conservation opportunities in residential development. In the following section, Goal HE-5 and its related policies and actions address energy conservation in residential development in Los Gatos.

The relevant Environment and Sustainability Element goals and policies in the 2040 General Plan are:
 Carbon-Neutral Energy (ENV-11.1). Support SCVE to continue to procure carbon-neutral energy for longterm and short-term supplies, including renewable resources.  Energy Efficiency in Municipal Facilities (ENV 11.2). Invest in cost-effective energy efficiency and energy conservation programs in municipal facilities.
 Future Demand Reduction (ENV 11.3). Explore cost-effective, reliable, and feasible energy efficiency and demand reduction opportunities and continue to use the Sustainability Plan to include education programs for these opportunities.
 Conservation and Reduction (ENV 11.4). Maximize the conservation and efficient use of energy in existing and new residences, businesses, and municipal buildings in Los Gatos.  Solar Systems (ENV 11.5). Support the maximum economic use of solar electric (photovoltaic) systems on-site to augment the renewable energy portfolio available to new development, businesses, and municipal facilities.
 Organic Waste Recycling (ENV 11.6). Comply with SB 1383 regulations to maximize energy recovery from organic materials such as yard trimmings, food waste, and other compostable resources.

10.5 Goals, Policies, and Implementation Programs
The Town does not build housing but, rather creates the policies and implementation programs to plan for where the housing can be located and how many units can be built on potential sites. The Town is responsible for enabling the production of housing by reducing regulatory barriers, providing incentives, and supporting programs that create or preserve housing, especially for vulnerable populations. The Town encourages production of a diversity of new housing to ensure an adequate supply is available to meet the needs of existing and future residents. To enable the construction of quality housing, the Town has identified the following goals, policies, and actions.

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Goal HE-1 Facilitate All Types of Housing Construction.

The Town encourages the production of diverse new housing options to ensure that an adequate supply is available to meet the existing and future needs of all residents.

Policy HE-1.1 Adequate Sites
Designate sufficient, residentially zoned land at appropriate densities to provide adequate sites to accommodate Los Gatos’s RHNA for 2023–2031 and monitor residential development to ensure there is an adequate level of remaining development capacity.

Policy HE-1.2 Multi-Family Housing Densities
Encourage builders to develop projects on multi-family designated properties at the high end of the applicable density range.

Policy HE-1.3 Infrastructure
All new residential development shall be sufficiently served by public services and facilities, including pedestrian and vehicular circulation, bike lanes, water and wastewater services, police, fire, schools, and parks.

Policy HE-1.4 Housing Design
Ensure that all new housing is well designed and fosters a sense of community.

Policy HE-1.5 Variety of Housing Choices
Encourage the production of housing that meets the needs of all economic segments of the Town, including lower and moderate households, to maintain a balanced community.

Policy HE-1.6 Universal Design
Address the special housing needs of persons with disabilities through reasonable accommodation procedures, zoning provisions for supportive and group housing, homeowner accessibility grants, and by encouraging universal design.

Policy HE-1.7 Infill Opportunities in Single-Family Neighborhoods The Town shall increase access to opportunity for lower-income households by encouraging infill of smaller units in single-family neighborhoods (e.g., ADUs, multi-generational housing units, and SB 9 projects).

Policy HE-1.8 Local Labor
Encourage developers and contractors to hire local labor, hire from or contribute to apprenticeship programs, increase resources for labor compliance, provide living wages, and provide appropriate health insurance.

Goal HE-2 Provide New Affordable Housing.

Overall housing production has been too slow to keep pace with population growth over the past two decades.

This trend has increased demand on the supply side of housing and increased the cost of all housing. More affordable housing is needed for extremely low, very low-, low-, and middle-income households.

Policy HE-2.1 Financial Resources
Pursue expanding financial resources to support the production of affordable housing for the Town’s modest income residents and workforce.

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Policy HE-2.2 Housing Vouchers
The Town shall support the Santa Clara County Housing Authority program for Housing Choice Vouchers (Section 8) to assist extremely low-, very low-, and low-income residents of the Town.

Policy HE-2.3 Mixed-Use Development
Encourage mixed–use developments that provide affordable housing close to employment centers and/or transportation facilities, particularly along arterials.

Policy HE-2.4 Rental Housing
Strive to ensure that at least 30 percent of the housing stock is rental units and continue to support the development of ADUs as a means of affordable rental housing.

Policy HE-2.5 Pre-Approved Accessory Dwelling Units
Collaborate with countywide efforts to develop pre-approved ADU plans suitable for Los Gatos, including designs that are Americans with Disabilities Act (ADA) accessible.

Policy HE-2.6 Promote Accessory Dwelling Unit Construction Encourage homeowners to construct detached rental ADUs in order to increase the housing stock of smaller rental units.

Policy HE-2.7 Senior Housing
Support development and maintenance of affordable senior rental and ownership housing and continue to work with existing senior lifestyle living and assisted living facilities in Los Gatos.

Encourage a variety of senior living options including downsizing and step-down independent ownership housing.

Policy HE-2.8 Equal Housing and Special Needs
Support the provision of permanent, affordable, and accessible housing that allows persons with special needs to live independent lives. For the purposes of this Housing Element “persons with special needs” include extremely low-income households, seniors, overcrowded and large-family households, the homeless population, those in need of emergency shelter, youth aging out of foster care, female-headed or single-parent households, and persons with disabilities, including developmental challenges.

Policy HE-2.9 Public/Private Partnerships
Work with and support collaborative partnerships with nonprofit agencies and housing developers to plan and develop a mix of affordable housing opportunities in Los Gatos using available funding.

Policy HE-2.10 Repurposing Obsolete Commercial Buildings Encourage property owners to pursue opportunities to integrate housing in underutilized commercial centers, and to reuse excess or obsolete commercial buildings for affordable housing.

Policy HE-2.11 Smart Growth
Encourage “smart growth” that accommodates higher density residential uses near transit, bicycle-, and pedestrian-friendly areas of the Town that encourage and facilitate the conservation of resources by reducing the need for automobile use.

Policy HE-2.12 Housing on Land Owned by Religious Institutions Support the provision of affordable housing on congregational land through flexible development standards, including opportunities for reduced and shared parking arrangements.

Policy HE-2.13 Housing on Land Owned by Religious Institutions Encourage development of multi-family rental housing that is greater than two bedrooms to encourage the provision of adequate rental housing for families.

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Goal HE-3 Remove Barriers to the Production of Housing.

Governmental constraints on the development of housing for households of all income levels needs to be minimized. The success of development in some opportunity areas will be dependent upon consolidation of individual parcels into larger development sites. While some of the individual parcels within these areas are already under common ownership, many are individually owned.

Policy HE-3.1 Regulatory Incentives for Affordable Housing Facilitate the development of affordable housing through regulatory incentives and concessions, and/or financial assistance. Continue expediting the permit processing system for affordable residential development applications and proactively seek out new models and approaches in the provision of affordable housing.

Policy HE-3.2 Flexible Development Standards
Provide flexibility in development standards to accommodate new models and approaches to providing housing, such as live/work housing (permitted with a CUP), and micro units (in existing housing units), to allow housing to adapt to the needs of the occupants.

Policy HE-3.3 Efficient Development Processing
Explore continued improvements to the entitlement process to streamline and coordinate the processing of permits, design review, and environmental clearance.

Policy HE-3.4 Lot Consolidation
Educate and encourage lot consolidation and lot assemblage in mixed use and commercial areas.

Policy HE-3.5 Development Impact and Permit Fees
Consider reduced fees and alternative funding to facilitate affordable housing development.

Goal HE-4 Improve the Existing Housing Stock.

Providing more housing is a priority; but maintaining and preserving existing housing also plays a critical role.

Much of the older housing in the Town can be naturally affordable, as priced by the housing market, but must be well-maintained to provide quality housing across income levels.

Policy HE-4.1 Property and Housing Conditions
Support long-term maintenance and improvement of existing housing units through Code Enforcement and housing rehabilitation programs.

Policy HE-4.2 Multi-Family Housing Acquisition and Improvement Improve the quality of rental housing by acquisition and/or rehabilitation using the Affordable Housing Fund and support nonprofit housing providers in the acquisition and rehabilitation of older housing stock, and maintenance as long-term affordable housing.

Policy HE-4.3 Home Affordability Preservation
Preserve the affordability of units affordable to very low-, low-, and moderate-income households in the Town and Bonnie View Park, and enforce zoning regulations regarding conversion of mobile home parks in Los Gatos.

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Policy HE-4.4 Naturally Occurring Affordable Units
Encourage maintaining naturally affordable housing types such as duplexes, townhomes, and mobile homes.

Policy HE-4.5 Preserve Residences of Historic or Architectural Value The Town shall encourage the preservation of residential buildings with historic or architectural value.

Goal HE-5 Encourage Green Building and Energy Conservation.

The Town is dedicated to addressing and mitigating climate change impacts and strives to be a leader in sustainable development. The General Plan promotes environmentally sound and socially equitable development by encouraging residential construction that promotes sustainable building and energy conservation practices.

Policy HE-5.1 Green Building
Encourage sustainable housing development throughout the Town by fostering awareness and encouraging the adoption of green building practices.

Policy HE-5.2 Solar Energy
Promote more efficient energy use and renewable energy to reduce the strain on the existing energy grid and reduce greenhouse gas emissions.

Goal HE-6 Publicize Fair Housing Resources, Including those for Special Needs Populations.

Many programs that address housing access and affordability for lower income households are supported by the Town and its partners; however, many people who need these resources have trouble finding them. It is important for the Town to proactively inform residents about housing needs and resources, particularly those related to Fair Housing issues.

Policy HE-6.1 Fair Housing
Support and publicize housing programs that protect individuals’ rights and enforce fair housing laws prohibiting arbitrary discrimination in the building, financing, selling or renting of housing on the basis of race, color, ancestry, religion, national origin, sex, sexual orientation, gender identification or expression, genetic information, primary language, citizenship, age, disability, medical condition, familial status, marital status, immigration status, military or veteran status, source of income or other such arbitrary factors.

Policy HE-6.2 Financial Assistance
Continue to encourage Los Gatos households to participate in financial assistance programs provided in the County of Santa Clara.

Policy HE-6.3 Housing for Persons with Special Needs
Continue to provide assistance to service providers who support special needs households and the homeless, such as Project Sentinel, Santa Clara County Housing Authority, and Santa Clara County Office of Supportive Housing. Support and publicize efforts and resources to provide coordinated services for persons with special needs in the Town.

Policy HE-6.4 Affordable Housing Awareness
Raise community awareness of the need for and benefits of affordable housing through Town outreach. Foster Town-wide discussion on housing needs, resources and ideas and improve communication channels and methods for meaningful dialogue.

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Policy HE-6.5 Infill Opportunities in Single-Family Neighborhoods The Town shall provide educational materials for the public to promote ADUs, multi-generational housing units and SB 9 projects that create housing opportunities in single-family neighborhoods through the infill of smaller units.

Policy HE-6.6 Rental Dispute Mediation and Arbitration Ordinance The Town will work to prevent evictions of long term, low-income residents living in naturally affordable housing who can quickly lose their residence due to sudden rent increases or changes in property owners.

10.6 Implementation Programs
Programs
A Developer Forum

Establish an annual meeting between
staff and housing developers to discuss
constraints and opportunities to affordable
and market rate housing projects.

Implementation Policies
HE-1.1 Adequate Sites
HE-1.2 Multi-family Housing Densities
HE-1.3 Infrastructure
HE-1.4 Housing Design
HE-1.5 Variety of Housing Choices
Responsible Department/Review Authority
Community Development Department
Timeframe
Annually provide focus group or Town Hall meeting
opportunities
Funding Source
None required
Quantified Objective
Meet once a year to generate a list of opportunities
and constraints
Performance Metric(s)
Number of Planning applications submitted for new
housing
B Large Site Program

Encourage property owners and
affordable housing developers to target
and market the availability of sites with
the best potential for development by
facilitating meetings between willing
property owners of large sites. To assist
the development of housing, especially for
lower income households, on sites larger
than 10 acres, the Town will facilitate land
divisions and lot line adjustments to result
in parcels sizes between one half to10
acres that can accommodate multiplefamily developments affordable to lower income households in light of State,
Federal, and local financing programs.

Implementation Policies
HE-1.1 Adequate Sites
HE-1.2 Multi-family Housing Densities
HE-1.3 Infrastructure
HE-1.4 Housing Design
HE-1.5 Variety of Housing Choices
Responsible Department/Review Authority
Community Development Department
Timeframe
Annually provide focus group or Town Hall meeting
opportunities
Funding Source
None required
Quantified Objective
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Programs
Facilitate four land divisions and/or lot line
adjustments
Performance Metric(s)
Number of subdivision applications entitled
C No Net Loss
Develop and implement an ongoing
formal evaluation procedure (project-byproject) of sites identified in the Site Inventory to maintain sufficient sites at
appropriate densities to accommodate
RHNA for lower income households. If an
approval of a development results in a
reduction of site capacity below the
residential capacity needed to
accommodate the remaining RHNA,
including for lower income households,
the Town will identify and zone sufficient
adequate sites at appropriate densities to
accommodate the remaining RHNA.

Implementation Policies
HE-1.1 Adequate Sites
HE-1.3 Infrastructure
HE-1.5 Variety of Housing Choice
Responsible Department/Review Authority
Community Development Department
Timeframe
Ongoing tracking as developments are approved
Funding Source
None required
Quantified Objective
Maintain RHNA capacity
Performance Metric(s)
Number of units and affordability level applied for;
number of units and affordability level entitled;
number of units and affordability level permitted;
number of units and affordability level completed
D Additional Housing Capacity for the
North Forty Specific Plan

Amend the North Forty Specific Plan to
allow for a density from 30 increase the
maximum allowable density from 20
dwelling units per acre to 40 dwelling
units per acre and increase the total
number of dwelling units allowed in the
Specific Plan.

Sites identified in the North Forty Specific
Plan Area are reuse sites and must permit
owner-occupied and rental multi-family
uses by-right for developments in which
20 percent or more of the units are
affordable to lower-income households.

See Implementation Program AR and AS.

Amend the North Forty Specific Plan to
include a policy specifying that additional
units as a result of the State density
bonus law, SB 330, and other applicable
state laws will not count toward the unit
cap.

Implementation Policies
HE-1.1 Adequate Sites
HE-3.3 Efficient Development Processing
Responsible Department/Review Authority
Community Development Department
Timeframe
January 2024
Funding Source
None required
Quantified Objective
Facilitate the construction of 15 45 new homes for
lower-income households.

Performance Metric(s)
Number of affordable homeownership units entitled
and the number of units entitled for lower-income
Households
E Affordable Development on Town
Owned Property
Implementation Policies
HE-1.1 Adequate Sites

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Programs
Pursue opportunities to work with an
affordable housing developer to construct
affordable housing on Town owned
property.

HE-2.9 Public/Private Partnerships
Responsible Department/Review Authority
Town Manager
Timeframe
Ongoing effort
Funding Source
None required
Quantified Objective
The number of Town owneds two properties that
could be suitable for affordable housing up to 20
units.

Performance Metric(s)
The number of Planning applications submitted for
new affordable housing
F Update Permit Software System
Update the existing permit software
system to better monitor average
processing times for ministerial and
discretionary development permits. Use
data to set baselines timelines to drive
improvements. Update the Town
planning and zoning regulations and
remove permit processing constraints as
appropriate.

Implementation Policies
HE-3.3 Efficient Development Processing
Responsible Department/Review Authority
Community Development Department
Timeframe
Review and update regulations as appropriate at
biannual years
Funding Source
None required
Quantified Objective
Reduce processing time by five percent
Performance Metric(s)
Improve current permit processing time
G Report Annually on Housing Availability
Update the existing permit software system to
better monitor average processing times for
ministerial and discretionary development
permits. Use data to set baselines timelines to
drive improvements. Update the Town planning
and zoning regulations and remove permit
processing constraints as appropriate.

Implementation Policies
HE-1.1 Adequate Sites
HE-1.5 Variety of Housing Choices
HE-3.3 Efficient Development Processing
Responsible Department/Review Authority
Community Development Department
Timeframe
Annually completed
Funding Source
None required
Quantified Objective

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Programs
The annual housing report reflects input from nonprofit providers, special needs providers, and other community resources
Performance Metric(s)
The number of new housing units that receive
entitlement
HG Study Ddetached sSingle-fFamily
cCondominium oOption.

Study the development of a new floor
area ratio standard for multi-family
development when developed as
detached single-family condominium
units.

Implementation Policies
HE-1.5 Variety of Housing Choices
HE-2.7 Senior Housing
Responsible Department/Review Authority
Community Development Department
Timeframe
December 2024
Funding Source
None required
Quantified Objective
Increase the floor area ratio to promote higher
density housing development
Performance Metric(s)
The number of Planning applications submitted for
new multi-family development utilizing the new floor
area ratio standard
HI Coordination with Water and Sewer
Providers
Deliver the adopted Housing Element to
the San Jose Water Company and the
West Valley Sanitation District so that
they can prioritize current and future
resources or services for housing
development that helps meet Los Gatos’s
RHNA for lower income households.

Implementation Policies
HE-1.3 Infrastructure
Responsible Department/Review Authority
Community Development Department
Timeframe
Upon adoption of the Housing Element
Funding Source
None required
Quantified Objective
Deliver Housing Element
Performance Metric(s)
Delivery of Housing Element
IJ Helping Senior Housing s
PrograResourcesm
Implementation Policies
HE-1.6 Universal Design
HE-2.7 Senior Housing
HE-2.8 Equal Housing and Special Needs

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Programs
Provide financial assistance for health,
safety, emergency and accessibility home
repairs to low-income seniors and lowincome mobile homeowners through the Below Market Price Program funds,
subject to availability of Program funds.

Provide regularly updated senior housing
resource materials at the Adult Recreation
Center, Library, and Farmers’ Market.

HE-6.1 Fair Housing
HE-6.2 Financial Assistance
HE-6.3 Housing for Persons with Special Needs
HE-6.4 Affordable Housing Awareness
Responsible Department/Review Authority
Responsible Department/Review Authority
Community Development Department and the
Town Council
Timeframe
Ongoing and annual effort
Update materials annually
Funding Source
Town Affordable Housing Funds
Quantified Objective
Maintain the existing housing stock by funding
three home repairs to lower income seniors
annually
Performance Metric(s)
Measure the number of units assisted versus the
need
JK Small Multi-Unit Housing, “Missing
Middle”
The Housing Element supports the land
use goal of providing opportunities for
housing that can accommodate the
needs, preferences, and financial
capabilities of current and future residents
in terms of different housing types,
tenures, density, sizes, and costs.

Specifically, the Town aims to create
mixed residential neighborhoods through
new and innovative housing types that
meet the changing needs of Los Gatos
households and expand housing choices
in all neighborhoods. These housing
types include, but are not limited to, single
dwelling units, multifamily dwelling units,
accessory dwelling units, small and micro
units, use of pre-fabricated homes, and
clustered housing/cottage housing. The
Town will also promote small multi-unit
housing that increases density while
remaining consistent with the building
scale and character present in existing
neighborhoods. This includes multi-family
units or clustered residential buildings that
provide relatively smaller, less expensive
units within existing neighborhoods.

Implementation Policies
HE-1.5 Variety of Housing Choices
HE-2.4 Rental Housing
HE-3.3 Efficient Development Processing
Responsible Department/Review Authority
Community Development Department
Timeframe
December 2024
Funding Source
None required
Quantified Objective
Increase the number of small multi-unit housinglowrise multi-family developments by five50 units from the previous yearover eight years.

Performance Metric(s)
Complete Zoning Code amendment by December
2024 and track the number of entitled Planning
applications received per year

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Programs
Update the Zoning Code to facilitate low
rise multi-family structuressmall multi-unit
housing in the low to mMedium
Residential Density designations.

TheGeneral Plan defines sSmall multi-unit
housing is defined as multiple units on a
single parcel (whether attached or
detached) that are compatible in scale
and form with detached single-family
homes. Common housing types include
duplexes; triplexes; fourplexes; courtyard
apartments; cottage courts; townhomes;
triplex stacked (vertical); and live-work
spaces.

Promote this program through publication,
to include the following information: Low
rise multi-family dwelling units ranging
from two to 10 units can help meet the
needs of families, seniors and students.

Permit processing times tend to be
shorter than larger multi-family buildings
due to the low-rise nature of the
structures.

Specifically, update the Zoning to allow
for all housing types considered for the
provision of Small Multi-Unit Housing
types as part of Low Density High
Density Residential designations.

Research existing regulatory impediments
to the creation of new housing types that
have the potential to fulfill unmet housing
needs (e.g., tiny homes, co-housing
developments) and if necessary, amend
applicable ordinances to allow for their
development.

Pursue establishment of a maximum
average unit size as a tool to moderate
unit sizes for developments over a certain
size but to allow flexibility for a range of
unit sizes.

L Rental Housing for Large Families
Encourage development of multi-family rental
housing that is greater than two bedrooms to
encourage the provision of adequate rental
housing for families.

Implementation Policies
HE-1.5 Variety of Housing Choices
HE-2.4 Rental Housing
Responsible Department/Review Authority
Community Development Department
Timeframe
Ongoing and annual effort
Funding Source

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Programs
None required
Quantified Objective
Four family friendly multi-family rental housing units
are entitled a year
Performance Metric(s)
Number of two-, three-, and four-bedroom units
entitled and number of family friendly designated
units
MK Lot Consolidation
The Town will conduct outreach to
property owners in these areas to identify
meaningful incentives to facilitate lot
consolidation, lot assemblage and
redevelopment in mixed use and
commercial areas. Based on this
feedback, within two years of Housing
Element adoption, the Town will consider
the development of a Lot Consolidation
Ordinance to include specific incentives
such as: flexible development standards
such as reduced setbacks, increased lot
coverage, increased heights, reduced
parking, reduced fees, and streamlined
permit processing through administrative
staff review. Upon adoption of the
Ordinance, the Town will work with
property owners that are receptive to lot
consolidation/lot assemblage to assist
them in facilitating the parcel merge
process in a streamlined and timely
manner.

Implementation Policies
HE-3.4 Lot Consolidation
Responsible Department/Review Authority
Community Development Department
Timeframe
June 2025
Funding Source
None required
Quantified Objective
Facilitate four housing unitsnine lot consolidations.
through the lot consolidation process.

Performance Metric(s)
Complete Zoning Code amendment
NL Below Market Price Program
Conduct a study to evaluate the existing
BMP Program and recommend changes
to the program to increase the number of
units constructed. The study will include
evaluation of the implementation of the
BMP Program to date, including impacts
to market rate housing related to current
market conditions, project applications,
estimated affordable housing
requirements, fee collection, and actual
construction of affordable housing units to
address constraints based on the
outcome of the evaluation. The study will
evaluate the feasibility of requiring BMP’s
for senior assisted living, senior
Implementation Policies
HE-2.7 Senior Housing
HE-3.1 Regulatory Incentives for Affordable
Housing
HE-4.1 Property and Housing Conditions
HE-4.2 Multi-family Housing Acquisition
Improvement
Responsible Department/Review Authority
Community Development Department
Timeframe
Complete study by June 2025 and implement
recommended policy actions by December 2028
Funding Source
Town Affordable Housing Fund
Quantified Objective

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Programs
independent living, and senior
communities.

Increase number of BMP units annually by two five
units
Performance Metric(s)
Complete study and implement policy actions
OM Establish a Commercial Linkage Fee
Conduct a nexus study and amend the
Municipal Code to include a linkage fee if
appropriate. A commercial linkage fee is
an impact fee levied on commercial
development for the provision of
affordable housing. Before levying an
impact fee, the Town is required to
complete a nexus study that shows the
linkage between new development and
the increased demand for housing.

Implementation Policies
HE-3.5 Development Impact and Permit Fees
Responsible Department/Review Authority
Community Development Department
Timeframe
Complete study by June 2024 and implement
recommended actions by December 2024
Funding Source
None required
Quantified Objective
Complete a nexus study to determine if linkage
fees are appropriate
Performance Metric(s)
Determine amount of affordable impact fees
collected
PN Funds for Development for Extremely
Low Income (ELI) Households
Continue to encourage the creation of
housing that is affordable to extremely
low-income households by allocating a
percentage of the Town Affordable
Housing (Below Market Price) Fund to
subsidize housing for extremely lowincome households. As part of the Town’s annual budget process, provide a
priority for funding ELI developments that
may be submitted to the Town with the
Town’s BMP monies. Update the
allocation as recommended by the BMP
study. Additionally, provide staff technical
assistance with the preparation of Tax
Credit or grant funding applications or
conducting local Tax Equity and Fiscal
Responsibility Act (TEFRA) hearings to
facilitate the financing of proposed
housing projects in Los Gatos.

Implementation Policies
HE-3.1 Regulatory Incentives for Affordable
Housing
HE-4.1 Property and Housing Conditions
HE-4.2 Multi-family Housing Acquisition
Improvement
Responsible Department/Review Authority
Community Development Department
Timeframe
Ongoing and annual effort
Funding Source
Below Market Price Housing In-lieu Fees
Quantified Objective
Subsidize three five developments which include
extremely low-income households
Performance Metric(s)
Number of extremely low-income households
funded.

Q Habitat for Humanity Home Repair Program Implementation Policies HE-2.7 Senior Housing
HE-2.8 Equal Housing and Special Needs

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Programs
Work with Habitat for Humanity to promote the
Home Repair Program offered by Habitat,
which responds to health, accessibility, and
safety concerns in homes owned by lowincome families, veterans, and senior residents on limited incomes. By fixing the long-deferred
maintenance projects, critical repairs and code
violations, this program helps families stay in
their already affordable homes and avoid
displacement.

HE-4.1 Property and Housing Conditions
Responsible Department/Review Authority
Community Development Department
Timeframe
Annually meet with Habitat for Humanity
Funding Source
None required
Quantified Objective
Increase the number of homes repaired through
Habitat for Humanity
Performance Metric(s)
Measure how many homes are repaired
R Development Impact and Permit Fees
Review the financial needs of affordable
housing projects, determine whether or not
Town fees can be reduced to facilitate
affordable housing development, and identify
options for the Town to offset the foregone
revenues from other sources.

Implementation Policies
HE-3.5 Development Impact and Permit Fees
Responsible Department/Review Authority
Community Development Department
Timeframe
January 2025
Funding Source
Staff time
Quantified Objective
Reduce development impact fees and permit
processing fees for affordable housing projects by
10 percent
Performance Metric(s)
Complete the review
SO Affordable Housing Development
Provide incentives for affordable housing
development, including density bonus, fee
deferrals or reductions, and reduced fees
for studio units. The Town shall also
provide annual outreach to attract and
support affordable housing developers in
the Town, including developers of senior
housing, extremely low-, very low- and
low-income units, and permanent
supportive housing for persons with
disabilities and developmental disabilities.

The Town shall annually identify
development and housing opportunities.

Implementation Policies
HE-1.2 Multi-family Housing Densities
HE-3.5 Development Impact and Permit Fees
HE-2.8 Equal Housing and Special Needs
HE-2.9 Public/Private Partnerships
HE-3.1 Regulatory Incentives for Affordable
Housing
Responsible Department/Review Authority
Community Development Department, Town
Council
Timeframe
Ongoing and annual effort
Reduce Review development impact fees by
January 2026

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Programs
Review the financial needs of affordable
housing projects, determine whether or
not Town fees can be reduced to facilitate
affordable housing development, and
identify options for the Town to offset the
foregone revenues from other sources.

Funding Source
Staff Time and the Below Market Price Housing Inlieu Fees Quantified Objective
 Facilitate the construction of 10 460 292
new homes for moderate to lower-income
households (five 100 80 for moderate, three
190 78 for low, and two 134 170 for verylow)
 Facilitate annual outreach to developers.

Annually identify development and housing
opportunities
 Reduce development impact fees and
permit processing fees for affordable
housing projects for extremely low and very
low units by 10 percent
Performance Metric(s)
Number of affordable homeownership units entitled
and number of units entitled for moderate, low, and
very-low income households.

PT Purchase Affordability Covenants in
Existing Apartments
Create a program for the Town to
purchase affordability covenants with
BMP funding to increase the supply of
affordable housing or “buy-down” existing
affordability covenants to have deeper
affordable units in existing rental
properties. This program is analogous to
purchasing covenants in new
developments in conjunction with the
BMP program, but for existing
apartments.

In existing and new rental developments,
the Town could provide a rehabilitation
loan or another form of subsidy to a rental
property owner in exchange for securing
affordability covenants on a percentage of
units and the owner’s agreement to
restrict rents on these units to levels that
would be affordable to very low- and lowincome households.

Implementation Policies
HE-2.1 Financial Resources
Responsible Department/Review Authority
Community Development Department, Town
Council
Timeframe
January 2028 2026
Funding Source
Below Market Price Housing In-lieu Fees
Quantified Objective
Affordability covenants for three housing units with
BMP funding to increase the supply of affordable
housing per year
Performance Metric(s)
Number of affordability covenants
UQ Accessory Dwelling Units
Facilitate ADU/JADU production with the
following efforts:

Implementation Policies
HE-1.7 Infill Opportunities in Single-Family
Neighborhoods
HE-2.4 Rental Housing
HE-2.5 Pre-Approved Accessory Dwelling Units
HE-2.6 Promote Accessory Dwelling Unit
Construction

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 Waive building fees when an
ADU is deed restricted for very
low-and low-income pursuant to
Town Code (Section

29.10.320(a).
 Initiate a marketing program for
homeowners on the benefits of
ADUs and the availability of
resources (templates, cost
calculators, technical support) to
support development. Promote
the use of Housing Choice
Vouchers (HCVs) and
homesharing (once established)
to make the units available to
lower income households.

 Collaborate with countywide
efforts to develop pre-approved
ADU plans suitable for Los Gatos,
including designs that are ADA
accessible.


 Streamline the review and
permitting of ADU’s by publishing
pre-approved plans including
plans that are ADA-compliant,
which shall be posted on the
Town’s website.
 Promote California Housing
Finance Agency (CHFA) ADU
grants of $40,000 available to
qualified homeowners for predevelopment costs.

Annually monitor number of
ADU’s/JADU’s produced, affordability
levels. By July 2027, if the production of
ADU/JADU is falling short of the projected
trend, and make adjustmentsdevelop
strategies (additional incentives, flexible
development standards, and/or identify
additional sites for housing development)
to accommodate a potential shortfall if
determined necessary (i.e. adopt
additional incentives or other
strategies).and assess whether additional
strategies and adjustments are necessary
to increase ADU production, including
HE-2.7 Senior Housing
HE-3.1 Regulatory Incentives for Affordable
Housing
HE-3.3 Efficient Development Processing
HE-3.5 Development Impact and Permit Fees
Responsible Department/Review Authority
Community Development Department
Timeframe
 Initiate marketing program and coordinate
efforts on pre-approved ADU plans (2023)
and other resources and services
(December 2025).
 Select at least three plans and conduct
media campaign to promote (December
2024)
 Monitor Annually monitor the production and
affordability of ADUs
 Amend the ADU Ordinance (January 2024)
 Monitor ADU/JADU production against
projection by July 2027 and develop
strategies to address any potential shortfall
in meeting RHNA by the end of 2027
annually and .adjust, if necessary, within six
months
Funding Source
Below Market Price Housing In-lieu Fees for
Waiving Building Fees and General Fund
Quantified Objective
 Facilitate cConstruction of at least 200
ADUs or JADUs with a goal to facilitate
construction of up to 200 350 ADUs or
JADUs throughout the Planning period
 Publish pre-approved ADU plans and
templates, including designs that address
ADA and senior housing needs
 Post pre-approved plans on Town website
 Use the Town’s social media, website, local
press, and community events to distribute
information
Performance Metric(s)
Number of Building Permits issued; number of
ADU/JADUs rented at a rental rate affordable for
very low-and low-income households

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Programs
searching for innovative funding sources
and revisiting the ADU marketing program
for property owners. shortfall by the end
of 2027.

Amend the ADU Ordinance to comply
with State law.

VR Density Bonus
Conduct a study to evaluate the existing
Density Bonus Ordinance and
recommend changes to increase the
number of units constructed. The study
will include an evaluation of the
implementation of the ordinance to date
and actual construction of affordable
housing units that utilized the Density
Bonus. Additional density and height
incentives beyond what the State requires
will be considered (i.e., fee reductions,
add free density of BMP units). The study
shall recommend improvements to the
Ordinance based on the outcome of the
evaluation.

Amend the Density Bonus Ordinance to
comply with State law.

Implementation Policies
HE-3.1 Regulatory Incentives for Affordable
Housing
HE-2.3 Mixed-Use Development
HE-2.8 Equal Housing and Special Needs
Responsible Department/Review Authority
Community Development Department
Timeframe
 Amend the Density Bonus Ordinance
(December 2024)
 Complete study by June 2026 and implement
recommended actions by December 2029
Funding Source
None required
Quantified Objective
Increase affordable housing units generated by an
amended Density Bonus Ordinance
Performance Metric(s)
Measure the number of affordable units that
received entitlements
W Affordable Housing Overlay Zone (AHOZ)
Continue to encourage development of housing
affordable to all income levels on property within
this Town Overlay Zone. The Overlay property
on Knowles Avenue is a key site for a mixed
income affordable housing project.

Implementation Policies
HE-3.1 Regulatory Incentives for Affordable
Housing
HE-2.7 Senior Housing
HE-2.8 Equal Housing and Special Needs
HE-2.9 Public/Private Partnerships
HE-2.11 Smart Growth
Responsible Department/Review Authority
Community Development Department
Timeframe
Complete by 2025
Funding Source
None required
Quantified Objective
Retain the AHOZ on Knowles Avenue
Performance Metric(s)

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Programs
The number of units that receive entitlements at the
Knowles Avenue AHOZ
XS Congregational Land Overlay Zone
Expand site opportunities by allowing
affordable housing on religious sites.

Study new Congregational Land Overlay
to build upon what is available through AB
1851 and AB 2244 and help
congregations by connecting them with
affordable housing development partners.

Implementation Policies
HE-3.1 Regulatory Incentives for Affordable
Housing
HE-2.7 Senior Housing
HE-2.8 Equal Housing and Special Needs
HE-2.9 Public/Private Partnerships
HE-2.11 Smart Growth
Responsible Department/Review Authority
Community Development Department
Timeframe
Complete by December 2025
Funding Source
None required
Quantified Objective
Increase affordable housing on one religious sites
by 25 units.

Performance Metric(s)
Complete study and measure the number of
congregational units that receive entitlements
YT Nonprofit Affordable Housing
Providers
Support the efforts of nonprofit affordable
housing organizations that provide
housing services in Los Gatos.

Encourage the participation of these
providers in developing housing and
meeting the affordable housing needs of
Los Gatos households particularly
extremely low-income households. Staff
will meet with nonprofit groups on at least
on an annual basis to discuss constraints
to development and develop strategies
and actions for affordable housing
development, including incentives for the
development of affordable housing as
provided under the Affordable Housing
Overlay Zone.

Research and pursue a homesharing
program, including research and
coordination with non-profit and other
Implementation Policies
HE-2.3 Mixed-Use Development
HE-2.7 Senior Housing
HE-2.8 Equal Housing and Special Needs
HE-2.9 Public/Private Partnerships
Responsible Department/Review Authority
Community Development Department
Timeframe
Ongoing and annual effort to support nonprofit
affordable housing organizations.

Pursue a homesharing program by December 2025
and market program annually with the goal of 5
matches a year.

Funding Source
None required
Quantified Objective
Meet with nonprofit affordable housing providers to
identify constraints and barriers
Performance Metric(s)

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Programs
organizations to assist with matching
tenants with existing homeowners.

Develop incentives for affordable housing and
measure number of units using incentives
ZU Increased Range of Housing
Opportunities for the Homeless
Continue to support the County of Santa
Clara’s Continuum of Care plan, as well
as the “Housing 1000” campaign by
“Destination: Home” to provide housing
opportunities for homeless households,
including emergency shelter, transitional
housing, and permanent affordable
housing opportunities.

Implementation Policies
HE-2.8 Equal Housing and Special Needs
HE-2.9 Public/Private Partnerships
Responsible Department/Review Authority
Community Development Department
Timeframe
Ongoing and annual effort
Funding Source
County CDBG
Quantified Objective
Support non-profit organizations to identify
emergency shelter, transitional housing, and
permanent housing opportunities with 20 bed
nights annually.

Performance Metric(s)
Number of units entitled.or bed nights provided,
AA Reasonable Accommodation Ordinance
Continue to enforce Section 29.10.505–530 of
the Town Code to ensure equal access to
housing for persons with disabilities under the
Fair Housing Act and provide specific
procedures for requesting and granting
reasonable accommodations. Review annually
for trends and develop new procedures and/or
materials in response to annual review.

Implementation Policies
HE-2.8 Equal Housing and Special Needs
Responsible Department/Review Authority
Community Development Department
Timeframe
Ongoing and annual effort
Funding Source
None required
Quantified Objective
Review annually and develop new procedures
Performance Metric(s)
The number of requests for reasonable
accommodations approved versus the need
AB Accessibility Design Features
Encourage residential development that
incorporates accessible design features to
meet the needs of as many users as possible.

The intent is to reduce the potential for
occupants to be displaced from their homes
due to disability, to allow those persons to visit
Implementation Policies
HE-1.6 Universal Design
HE-2.8 Equal Housing and Special Needs
HE-2.9 Public/Private Partnerships
Responsible Department/Review Authority
Community Development Department
Timeframe

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Programs
neighboring dwelling units, and to increase to
number of accessible dwelling units in the local
housing supply that meet long term housing
needs. Remove identified regulatory
constraints on housing for persons with
disabilities.

Review and update regulations as necessary; at
least every three years
Funding Source
None required
Quantified Objective
Increase housing for persons with disabilities
Performance Metric(s)
Number of projects implementing Universal Design
AV Housing Opportunities for Persons
Living with Disabilities
Support the provision of housing for the
disabled population, including persons
with developmental disabilities, through
several means, including:
 Review and revise the Reasonable
Accommodation procedure to
promote access to housing for
persons with disabilities, address
potential constraints including
subjective approval findings such as
“impact on surrounding uses”.

Reasonable Accommodation
procedure. Review procedure
annually and develop improved
procedure.
 Encouraging accessibility design
features to be incorporated in
development. Review
development regulations annually
to remove constraints.
 By-right zoning for licensed
residential care facilities (six or
fewer residents) in all residential
zones, and provisions for larger
care facilities (seven or more
residents) in multi-family
residential zones subject to a
conditional use permit.
 Treatment of supportive and
transitional housing as a
residential use of property, and
subject only to those restrictions
and processing requirements that
apply to other residential dwellings
of the same type in the same
zone.
 Programs to facilitate affordable
housing, including Density Bonus
and Affordable Housing Overlay.

Implementation
HE-1.6 Universal Design
HE-2.8 Equal Housing and Special Needs
HE-2.9 Public/Private Partnerships
HE-6.1 Fair Housing
HE-6.3 Housing for Persons with Special Needs
Responsible Department/Review Authority
Community Development Department
Timeframe
Complete by December 20252024
Funding Source
None required
Quantified Objective
Zoning Code amendment to increase the number
of disabled persons housed by 90 units.

Performance Metric(s)
Complete Zoning Code Amendment and measure
number of units entitled

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Programs
 Encouraging affordable housing
developers to integrate supportive
housing units, increasing project
competitiveness for Tax Credits
and other funding sources.
 Supporting the creation of ADUs in
all residential districts.

AD Special Needs Housing
Prioritize special needs housing by allowing for
reduced processing times and streamlined
procedures for applicable zoning/land use
applications. Include preferential handling of
special needs populations in management
plans and regulatory agreements of funded
projects.

Implementation
HE-2.7 Senior Housing
HE-2.8 Equal Housing and Special Needs
HE-2.9 Public/Private Partnerships
HE-3.3 Efficient Development Processing
Responsible Department/Review Authority
Community Services Department
Timeframe
January 2028
Funding Source
None required
Quantified Objective
Establish streamlined procedures for special needs
housing
Performance Metric(s)
Number of deed restricted special needs units
created
AEW Rental Dispute Resolution Program
Continue the administration of the Rental
Dispute Resolution Program and consider
revisions as necessary to make the
program as effective as possible in
protecting both tenants’ and landlords’
rights.

Implementation
HE-6.6 Rental Dispute Mediation and Arbitration
Ordinance
Responsible Department/Review Authority
Community Services Department
Timeframe
Ongoing and annual effort
Funding Source
Program fees
Quantified Objective
Increase the number of disputes resolved by 20
percent.

Performance Metric(s)
Measure the percentage of disputes resolved
annually
AFX Rental Assistance for Persons with
Developmental Challenges
Implementation
HE-2.7 Senior Housing
HE-2.8 Equal Housing and Special Needs
HE-2.9 Public/Private Partnerships

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Programs
Work with local and/or regional partners
to provide rental assistance for persons
with developmental challenges. Efforts
will include the following:
 Work with the California
Department of Developmental
Services local Regional Center to
identify the housing needs specific
to developmentally challenged
persons residing in Los Gatos and
assist in identifying available
housing that meets those needs.
 Encourage qualifying Regional
Center clients residing in Los
Gatos to apply for appropriate
rental assistance programs.
 Identify outside funding sources,
such as regional or State
programs, that could provide rental
assistance for developmentally
challenged persons living in Los
Gatos.
 Make referrals to non-profit service
providers with rental assistance or
rental voucher programs such as
West Valley Community Services
and the Housing Authority of Santa
Clara County.

Responsible Department/Review Authority
Community Development Department
Timeframe
Annually follow up on a periodic basis with service
providers to determine outcomes for referrals and
update referral process and timelines accordingly
2023-2031 period
Funding Source
None required
Quantified Objective
Provide rental assistance for persons with
disabilities
Performance Metric(s)
Measure percentage of persons helped versus the
number of requests
AGY Supportive Services for the Homeless
Continue to support community and
nonprofit organizations that provide
supportive services for homeless persons
in Los Gatos in part by continuing to fund
the Town's annual grant and
disseminating opportunities for other
agency funding to West Valley
Community Services (WVCS), in order to
support its Comprehensive Emergency
Assistance Program (CEAP).

Continue to work with and fund local
nonprofits, and to collaborate with local
homeless service providers to provide
information on homeless needs in the
Town.

Implementation
HE-2.3 Mixed-Use Development
HE-2.78 Equal Housing and Special Needs
Responsible Department/Review Authority
Town Manager
Timeframe
Ongoing and annual effort
Funding Source
Town of Los Gatos
Quantified Objective
Continue the Town’s support to provide funds to
WVCS for homeless persons services
Performance Metric(s)
The number of Town residents assisted through
WVCS
AHZ Stabilize Rents Implementation
HE-2.3 Mixed-Use Development
HE-2.4 Rental Housing

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Programs
Study and implement recommendations
with regard to the Town’s Rental Dispute
Mediation and Arbitration Ordinance 2128
to help further stabilize rents for long-term
residents.

HE-6.6 Rental Dispute Mediation and Arbitration
Ordinance
Responsible Department/Review Authority
Community Development Department
Timeframe
Complete study by January 2025 and implement
Municipal Code changes by June 2025
Funding Source
Below Market Price Housing In-lieu Fees
Quantified Objective
Implement improvement opportunities for the
Rental Dispute Mediation and Arbitration Ordinance
Performance Metric(s)
Measure the number of disputes resolved versus
unresolved
AIAA Reduce Parking Standards
Initiate a study and outreach, including
developers to determineand make
specific updates that would result
amendments to for the Municipal Code,
as follows to address the following:
 Align parking requirements with
the preparation of Objective
Design Standards.
 Reduce parking requirements near
transit.
 Remove guest parking
requirements.
 Allow parking to be unbundled
from residential units.

Implementation
HE-2.7 Senior Housing
HE-2.8 Equal Housing and Special Needs
HE-3.1 Regulatory Incentives for Affordable
Housing
Responsible Department/Review Authority
Community Development Department
Timeframe
Complete study by January 2025 and implement
Town Code changes by June 2025
Funding Source
None required
Quantified Objective
Zoning Code amendment to reduce parking
standards
Performance Metric(s)
Zoning Code amendment
AJAB Allow for 100 Percent Affordable
Residential Development in Mixed-Use
General Plan Designations
Amend the General Plan and the
Municipal Code to allow for 100 percent
affordable residential development
without the requirement of commercial
uses.

Implementation
HE-3.1 Regulatory Incentives for Affordable
Housing
Responsible Department/Review Authority
Community Development Department
Timeframe
Implement General Plan and Municipal Code
changes by June 2024
Funding Source

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Programs
None required
Quantified Objective
Amend the General Plan and Zoning Code to allow
for 100 percent affordable housing development in
Mixed-Use General Plan designations
Performance Metric(s)
Measure the number of mixed-use units entitled
annually
AK Housing Conditions Survey

Seek funding through the Below Market Price
Program funds, or other funding sources, to
conduct a survey of housing conditions in the
Town. The survey shall identify housing units
in need of rehabilitation or replacement.

Implementation
HE-4.1 Property and Housing Conditions
Responsible Department/Review Authority
Community Development Department
Timeframe
January 2028
Funding Source
Below Market Price Housing In-lieu Fees
Quantified Objective
Document the number of housing units in need of
rehabilitation or replacement
Performance Metric(s)
Complete study and evaluate if the study is needed
annually based on the report’s findings
ALAC SB 35 Process Improvements
Develop an SB 35 checklist and written
procedures for processing SB 35
applications to ensure efficient and
complete application processing.

Implementation
HE-3.3 Efficient Development Processing
HE-3.1 Regulatory Incentives for Affordable
Housing
Responsible Department/Review Authority
Community Development Department
Timeframe
Implement by December 2023
Funding Source
Staff Time
Quantified Objective
Measure SB 35 applications processed per year
Performance Metric(s)
N/A
AMAD Low Barrier Navigation Centers Implementation
HE-2.87 Equal Housing and Special Needs

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Programs
Amend the Zoning Code Definitions to
include the definition for “Low Barrier
Navigation Center” consistent with State
law. Allow at least two mixed-use zoning
districts to permit low barrier navigation
centers as a by-right use.

Responsible Department/Review Authority
Community Development Department
Timeframe
Implement by December 2023
Funding Source
Staff Time
Quantified Objective
Zoning Code amendment to include the definition
for “Low Barrier Navigation Center” consistent with
State law
Performance Metric(s)
Zoning Code amendment
ANAE Fair Housing Law Education
Educate the community about landlords
and renters rights and responsibilities
under Fair Housing law, needs and
benefits of affordable housing, and
available resources in the Town by
posting information on the Town’s
website, social media posts and/or
brochures, distributing information
through the business licensing
recertification process, and posting fair
housing posters in Town Hall, the
community center and the library.

The Town will continue to work with and
fund local nonprofits, and to collaborate
with local homeless service providers to
provide information on homeless needs in
the town.

Implementation
HE-6.4 Affordable Housing Awareness
Responsible Department/Review Authority
Community Development Department, Finance
Department, California Department of
Developmental Services
Timeframe
Resources posted by end of January 2023
Funding Source
Staff Time
Quantified Objective
Add 50 new subscribers to the Notify me subscriber
list
Performance Metric(s)
Number of new subscribers
AOAF Transit Oriented Development
As part of the comprehensive Zoning
Code update, establish development
standards for transit-oriented
development located within existing
transit areas that promote sustainable
land use practices which reduce vehicle
trips and allow for mixed-use
developments as well as stand-alone
residential. In addition, the Town shall
provide for CEQA streamlining consistent
with the provisions of SB 375.

Implementation
HE-2.11 Smart Growth
Responsible Department/Review Authority
Community Development Department
Timeframe
Implement Municipal Code changes by June 2025
Funding Source
Staff Time
Quantified Objective
Zoning Code amendment to establish development
standards for transit-oriented development

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Programs
Performance Metric(s)
Measure the number of mixed-use and stand-alone
residential units entitled within transit areas
APAG Preserve “At-Risk” Affordable Housing
Units

Continue to monitor affordable, multifamily housing units in the Town to ensure that they retain their affordability status.

Implementation
HE-4.3 Home Affordability Preservation
Responsible Department/Review Authority
Community Development Department
Timeframe
Ongoing and annual effort
Funding Source
None required
Quantified Objective
Preserve all 169 publicly assisted housing units in
Los GatosZero loss of affordable housing.

Performance Metric(s)
Number of units preserved; number of existing
residents retained
AQAH Rental Housing Conservation Program
Continue to implement Section 29.20.155
of the Town Code that addresses
conversions of residential use, specifically
Section 29.20.155(a)(2), which requires
that any proposed conversion satisfy the
housing goals and policies as set forth in
the 2040 General Plan.

Implementation
HE-2.4 Rental Housing
HE-4.1 Property and Housing Conditions
Responsible Department/Review Authority
Community Development Department
Timeframe
Ongoing and annual effort
Funding Source
None required
Quantified Objective
Zero loss of rental housing
Performance Metric(s)
Measure the loss of rental housing
AR CDBG and other Housing Rehabilitation
Programs
Continue to participate in the County of Santa
Clara Community Development Block Grant
Joint Powers Authority to facilitate participation
in County CDBG Housing Rehabilitation
programs by Town residents.

Implementation
HE-4.1 Property and Housing Conditions
HE-4.3 Home Affordability Preservation
Responsible Department/Review Authority
Community Development Department
Timeframe
Ongoing and annual effort
Funding Source

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Programs
General Fund
Quantified Objective
Zero loss of housing due to the need for
rehabilitation
Performance Metric
Measure the number of homes retained through
CDBG support through the Town’s annual
participation
ASAI Countywide Home Repair Programs
Continue to support countywide programs
(through Habitat for Humanity East
Bay/Silicon Valley, Rebuilding Together,
Housing Trust of Santa Clara County,
etc.) that provide assistance with minor
home repairs and accessibility
improvements for lower income
households, including special needs
households.

Support annual funding requests
submitted by rehabilitation agencies to the
County of Santa Clara, and provide local
technical assistance as needed to
nonprofits submitting funding applications
to the County and/or applying for building
permits through the Town’s building
permit process.

Contribute funding from the Town’s Below
Market Price monies to support these
programs. Continue to participate as a
member of the County of Santa Clara
JPA. Continue to provide staffing to the
County Technical Advisory Committee
(TAC), which reviews annual applications
for funding and helps formulate funding
recommendations to the Board of
Supervisors.

Promote County programs through Town
website and social media accounts.

Implementation
HE-4.1 Property and Housing Conditions
HE-6.3 Housing for Persons with Special Needs
Responsible Department/Review Authority
Community Development Department; County of
Santa Clara
Timeframe
Ongoing and annual effort
Update Town website to provide links to County
programs annually
Funding Source
None required
Quantified Objective
Three minor home repairs and/or accessibility
improvements annually for lower income
households, including special needs households
Performance Metric(s)
The number of homes that received assistance
compared to the number of homes needing
assistance
AUAJ Town Residential Rehabilitation
Program
Create a new program to assist lower
income homeowners, including senior and
disabled households, with funding for
home repairs and improvements. The
program could incentivize providing
grants for the following activities:

Implementation
HE-4.1 Property and Housing Conditions
HE-5.1 Green Building
Responsible Department/Review Authority
Community Development Department
Timeframe
December 2027

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Programs
accessibility improvements; exterior or
interior home repair; repair of fencing
and/or landscaping; plumbing; exterior
painting; roof repair; and similar activities.

Funding Source
Below Market Price Housing In-lieu Fees
Quantified Objective
Provide rehabilitation to five low-income
homeowner units annually
Performance Metric(s)
Number of low-income homeowners assisted and
program created
AVAK Energy Conservation Opportunities
Solar Energy
Continue to enforce State of California
Title 24 requirements for energy
conservation.

Continue to expedite solar panel
installation by requiring only ministerial
building permits.

Implementation
HE-5.1 Green Building
HE-5.2 Solar Energy
Responsible Department/Review Authority
Community Development Department
Timeframe
Ongoing and annual effort
Funding Source
None required
Quantified Objective
Increase the number of all electric housing units
built
Increase solar energy use through ministerial
building permits
Performance Metric(s)
Number of all electric housing units built Number
of solar permits issued a year
AWAL Town Housing Resources Guide
Continue to provide a guide to
developments that include affordable
housing units as part of the Housing
Resources Guide posted on the Town’s
website, and available at Town Hall,
Library, and other Town facilities.

Publicize available warming/cooling
centers as provided by the Santa Clara
County of Office of Supportive Housing
during inclement weather episodes.

Provide regularly updated senior housing
resource materials at the Adult Recreation
Center, Library, and Farmers’ Market.

Implementation
HE-5.1 Green Building HE-6.1 Fair Housing
HE-6.2 Financial Assistance
HE-6.3 Housing for Persons with Special Needs
HE-6.4 Affordable Housing Awareness
Responsible Department/Review Authority
Community Development Department
Timeframe
Update list materials annually
Funding Source
None required
Quantified Objective
Increase the Housing Resources Guide usage
Performance Metric(s)

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Programs
Measure the number of persons accessing the
Town’s Housing Resources Guide on the website
AXAM Santa Clara County Fair Housing
Consortium
Support the efforts of the Santa Clara
County Fair Housing Consortium, as
follows.

Continue to make referrals through
Project Sentinel and provide updated fair
housing information on the Town’s
website and at public locations through
the Town, such as the Adult Recreation
Center, Library, Farmers’ Market and
public kiosks. Through an ongoing
partnership with Project Sentinel, a
member of the Consortium and the
Town’s service administrator for the
Rental Dispute Resolution Program, Town
staff is able to attend the Consortiums
annual Fair Housing Symposium, receive
training, and disseminate fair housing
information (including how to contact
Consortium agencies for assistance) to
members of the public who contact the
Town about a potential fair housing
related matter.

Implementation
HE-5.2 Solar Energy
HE-6.3 Housing for Persons with Special Needs
Responsible Department/Review Authority
Community Development Department
Timeframe
Ongoing and annual effort
Funding Source
None required
Quantified Objective
Zero displacement
Performance Metric(s)
Counsel 10 tenants annually on tenant/landlord
concerns to prevent displacement
AY Senior Housing Resources
Provide regularly updated senior housing
resource materials at the Adult Recreation
Center, Library, and Farmers’ Market.

Implementation
HE-6.1 Fair Housing
HE-6.2 Financial Assistance
HE-6.3 Housing for Persons with Special Needs
HE-6.4 Affordable Housing Awareness
Responsible Department/Review Authority
Community Development Department
Timeframe
Update materials annually
Funding Source
None required
Quantified Objective
Increase senior housing resource materials
Performance Metric(s)
Continue to update senior housing resource
materials annually
AZ Developmental Challenges
Continue to work with the local California
Department of Developmental Services
Implementation
Responsible Department/Review Authority

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Programs
Regional Center to proactively inform families
within Los Gatos about housing and services
available for persons with developmental
challenges, to include an informational
brochure, information on the Town’s website,
and housing-related training workshops for
individuals and families.

Community Development Department, California
Department of Developmental Services
Timeframe
Update materials annually
Funding Source
None required
Quantified Objective
Increase the number of families served
Performance Metric(s)
Continue to provide housing and services
information annually
BAAN Community Education Useing a Variety
of Communication Methods
Provide education on the problems and
needs of affordable housing as a means
of changing negative attitudes towards
the provision of affordable housing.

Broadcast information about available
housing resources through a variety of
communication methods across media,
technological nonprofit organizations and
traditional in person outreach methods,
such as the Farmers’ Market, Library, and
community center, with a particular focus
on reaching the very low- and low-income
demographic and those who may not
have access to online resources.

Implementation
HE-6.1 Fair Housing
HE-6.4 Affordable Housing Awareness
Responsible Department/Review Authority
Community Development Department, California
Department of Developmental Services
Timeframe
Update materials quarterly
Funding Source
None required
Quantified Objective
Increase availability of information.

Performance Metric(s)
Continue to provide housing resources to very lowand low-income individuals BBAO Educate Single-Family Property
Owners Regarding In-Fill Housing
Options
Create and distribute educational
materials to include information about the
process to construct ADU’s, multigenerational housing, and options available with Senate Bill SB 9.

Implementation
HE-1.5 Variety of Housing Choices
HE-1.7 Infill Opportunities in Single-Family
Neighborhoods
HE-6.1 Fair Housing
HE-6.4 Affordable Housing Awareness
Responsible Department/Review Authority
Community Development Department, California
Department of Developmental Services
Timeframe
Update materials quarterly
Funding Source
None required
Quantified Objective

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Programs
Provide education on SB 9 and ADU’s.

Performance Metric(s)
Number of Building permits issued for ADUs and
SB 9 projects
BCAP Zoning Text Amendments for Special
Needs Housing

Pursuant to recent changes in State law,
the Town’s Municipal Code may be
modified to better facilitate the provision
of a variety of housing types. These Code
revisions include:
 Amend Town Code to align with all
State requirements on the
provision of emergency shelters.

Specifically:
- Expand the definition of
emergency shelters to include
interim housing options such as
low barrier navigation centers,
bridge housing, and respite and
recuperative care.
- Permit emergency shelters by
right without discretionary review
in the Commercial Industrial (LM)
zone.
- Amend parking standards for
emergency shelters from a ratio
based on the size of the structure
to a ratio based on the number of
shelter staff (per AB 139).
 Eliminate current spacing
requirements between shelters
and residentially zoned properties
and schools.
 Develop and adopt by- right
processing procedures for Low
Barrier Navigation Centers (per AB
101).
 Allow small employee housing (six
or fewer) in all zone districts where
single-family residential is
permitted.
 Allow Transitional Housing and
Supportive Housing developments
by-right in all zoning districts that
permit residential uses (per SB 2)
 Develop a by-right, streamlined,
ministerial review of Supportive
and Transitional Housing
developments (per AB 2162).

Implementation
HE-2.7 Equal Housing and Special NeedsSenior
Housing
HE-2.8 Equal Housing and Special Needs
HE-2.9 Public/Private Partnerships
HE-3.3 Efficient Development Processing
Responsible Department/Review Authority
Community Development Department
Timeframe
Amend Zoning Code by January 2024
Establish prioritize processing of special needs
housing by January 2028
Funding Source
None required
Quantified Objective
Amend the Zoning Code to remove barriers to
building special needs housing
Performance Metric(s)
Adopt Zoning Code amendments

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Programs
 Permit by-right Permanent
Supportive Housing and
Transitional Housing in zones
where multi-family and mixed uses
are permitted, including
nonresidential zones permitting
multi-family uses (per Government
Code Section 65651)
 Allow Employee Housing
consisting of up to 36 beds or 12
units in zones that allow
agricultural uses (per Health and
Safety Code Section 17000, et
seq.).
 Allow for group homes of seven
and more by right in residential
districts, and to conform with
HCD’s Group Home Technical
Advisory (Dec 2022)
 Modify the language of Municipal
Code Section 29.10.530(a) to
remove finding number (5) of the
mandatory criteria for granting a
reasonable accommodation
request to read, “There would be
minimal impact on surrounding
uses.”.

In addition, 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.

BD Affordable Development on Religious Sites
Pursue and expand development opportunities
by allowing affordable housing on religious
sites per AB 2244.

Implementation
HE-2.12 Housing on Land Owned by Religious
Institutions
Responsible Department/Review Authority
Community Development Department
Timeframe
Ongoing and annual effort
Funding Source
None required
Quantified Objective
Increase affordable housing on religious sites
Performance Metric(s)

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Programs
Number of units entitled per AB 2244
BE Community Education on Housing Needs
Provide education on the problems and needs
of affordable housing as a means of changing
negative attitudes towards the provision of
affordable housing.

Implementation
HE-6.4 Affordable Housing Awareness
Responsible Department/Review Authority
Community Development Department
Timeframe
Ongoing and annual effort
Funding Source
None required
Quantified Objective
Provide education annually
Performance Metric(s)
Number of education opportunities provided
annually
BFAQ Zoning Code Amendments
Amend the Zoning Code to comply with
State law and ensure adequate sites are
available to accommodate the identified
sites in the Sites Inventory. These Code
revisions include:
 Amend the Zoning Code to include
a Housing Element Overlay Zone
(HEOZ) to apply to the sites
included in the Site Inventory to
modify the development standards
(i.e., density, lot coverage, FAR,
height) on those sites. The Town
will commit to monitoring and
evaluating the HEOZ development
standards, including outreach with
the development community, and
making adjustments as necessary.
 Amend the Affordable Housing
Overlay Zone to increase the
maximum allowable density from
20 dwelling units per acre to 40
dwelling units per acre.
 Clarify the text of the nonresidential zones regarding housing.
 Rezone the Caltrans Right-of-Way
– Site E3 from R:1:8 to R-M:5-12.
 Amend the Accessory Dwelling
Unit Ordinance.

Implementation
HE-1.1 Adequate Sites
HE-1.2 Multi-family Housing Densities
HE-2.11 Smart Growth
Responsible Department/Review Authority
Community Development Department
Timeframe
Complete rezonings by January 31, 2024, and
monitoring and evaluation of the HEOZ
developments standards by December 2026.

Funding Source
General Plan Update Fund
Quantified Objective
Amend the Zoning Code consistent with the
Housing Element timing
Performance Metric(s)
Number of affordable homeownership units entitled
and numbers of units entitled for moderate, low,
and very-low households and adopt the Zoning
Code amendments

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Programs
 Amend the Density Bonus
Ordinance.
 Amend the Architecture and Site
considerations for a multi-family
and mixed-use project to make
them objective and provide
certainty in outcomes.
 Amend the Conditional Use Permit
findings for a multi-family and
mixed-use project to make them
objective and provide certainty in
outcomes. Specifically, address
Finding (1) relating to use
desirable to the public
convenience and Finding (2)
relating to the integrity and
character of the zone. These
findings be considered subjective
and open to interpretation.
 Amend the Zoning Code to clarify
that the Town will comply with
Section 65852.3 of the
Government Code to allow the
installation of manufactured
homes.
 Amend the Zoning Code to align
the private open space and the
community recreation space
requirements for a multi-family and
condominium project with the
Objective Design Standards.
 Amend the Zoning Code to align
parking requirements for a multifamily and condominium project with the preparation of the
Objective Design Standards.

BGAR General Plan Amendment
Amend the General Plan to modify the
designation of 16492 Los Gatos
Boulevard and Parcel 532-07-086 from
Low Density Residential to Neighborhood
Commercial, modify the designation of the
Cal Trans Right-of-Way from Low Density
Residential to Medium Density
Residential, and establish new maximum
densities for the High Residential,
Medium Density Residential, Low Density
Residential, Mixed-Use, Neighborhood
Commercial, and Central Business
District land use designations to provide
Implementation
HE-1.1 Adequate Sites
HE-1.2 Multi-family Housing Densities
HE-2.11 Smart Growth
Responsible Department/Review Authority
Community Development Department
Timeframe
Complete General Plan amendments by January
31, 2024
Funding Source
General Plan Update Fund
Quantified Objective

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Programs
for the development of housing for the
sites in the Site Inventory. See Program
BFAQ.

As individual elements of the General
Plan are amended, the Town will review
and revise related elements impacted to
ensure internal consistency.

By-right approval without discretionary
review: Pursuant to State law, 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 Housing
Element Overlay Zone (HEOZ) as
identified in Appendix D, given that
the rezoning occurs after the
statutory deadline of the Housing
Element (January 31, 2023).
 Reuse Sites: As identified in
Appendix D, sites that were used
in the 5th cycle Housing Element to
meet the RHNA will be rezoned
with the HEOZ.

Adopt General Plan amendments consistent with
the Housing Element timing.

Performance Metric(s)
Adopt General Plan amendments.

BHAS Provide Adequate Sites for Housing,
RHNA Rezoning, and Lower Income
Households on Nonvacant and Vacant
Sites Previously Identified
Rezone sites as identified within Appendix
D to accommodate the Town’s RHNA and
a 25 24 percent buffer to allow for
compliance with No Net Loss Provisions
of SB 166.

By-right approval without discretionary
review: Pursuant to State law, 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:

Implementation
HE-1.1 Adequate Sites
Responsible Department/Review Authority
Community Development Department
Timeframe
Rezone all sites in the Sites Inventory 16 reuse
sites to increase housing on nonvacant and vacant
sites previously identified by January 31, 2023.

Funding Source
General Plan Update Fund
Quantified Objective
The number of housing units entitled per year on
these sites
Performance Metric(s)
Rezone the reuse sites

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Programs
 Rezone Sites: All sites that are to
be rezoned with the Housing
Element Overlay Zone (HEOZ) as
identified in Appendix D, given that
the rezoning occurs after the
statutory deadline of the Housing
Element (January 31, 2023).
 Reuse Sites: As identified in
Appendix D, sites that were used
in the 5th cycle Housing Element to
meet the RHNA will be rezoned
with the HEOZ.

Rezone the reuse sites included below to
meet density requirements for lowerincome households and allow development by right pursuant to
Government Code section 65583.2(H)
and (I) when 20 percent or more of the
units are affordable to lower income
households :
 Parcel: 424-08-074;
 Parcel: 424-08-057;
 Parcel: 424-08-021;
 Parcel: 424-06-116;
 14823 Los Gatos Boulevard;
 14831 Los Gatos Boulevard;
 14849 Los Gatos Boulevard;
 14859 Los Gatos Boulevard;
 16392 Los Gatos Boulevard;
 16210 Burton Road;
 16240 Burton Road;
 16245 Burton Road;
 16250 Burton Road;
 16260 Burton Road;
 16270 Burton Road; and
 110 Knowles Drive.

BIAT Affirmative Marketing
The Town will work with affordable and
market rate housing developers to ensure
that affordable housing is affirmatively
marketed to households with
disproportionate housing needs, including
Hispanic and Black households who work
in and live outside of Los Gatos (e.g.,
materials in Spanish and English,
distributed through employers). The
Town will notify a broad representation of
the community to solicit ideas for housing
strategies when they are discussed at
Implementation
HE-6.4 Affordable Housing Awareness
Responsible Department/Review Authority
Community Development Department
Timeframe
As applications which propose new housing units
are submitted and available
Funding Source
General fund (staff time)
Quantified Objective

10. Housing Element
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Programs
Planning Commission or Town Council
meetings. Specific outreach activities
include:
 Maintain the Housing Element
email list and send public notices
to all interested public and nonprofit agencies and affected property owners;
 Post notices at the Community
Development Department and at
the Town library with information
on the type and number of units
proposed for a project and their
expected availability;
 Publish notices in the local
newspaper with information on the
type and number of units proposed
for a project and their expected
availability;
 Post information and meeting
information on the Town’s website
and social media accounts with
information on the type and
number of units proposed for a
project and their expected
availability; and
 Provide notice to community
groups such as West Valley
Community Services with
information on the type and
number of units proposed for a
project and their expected
availability.

Number of marketing plans updated.

Performance Metric(s)
Affirmatively market all affordable housing
opportunities
BJ Ordinance Amendments
Amend the following Ordinances to comply
with current State law:
 Accessory Dwelling Unit Ordinance; and
 Density Bonus Ordinance

Implementation
HE-2.6 Promote Accessory Dwelling Unit
Construction
Responsible Department/Review Authority
Community Development Department
Timeframe
Complete amendments by December 2023
Funding Source
General fund (staff time)
Quantified Objective
Zoning Code amendments
Performance Metric(s)
Adopted Zoning Code amendments
BKAU Replacement Unit Program Implementation

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Programs
Adopt a policy requiring replacement
housing units subject to the requirements
of Government Code section 65915 (c)(3)
when new development occurs on a
housing inventory site which currently has
or within the past five years had
residential uses (existing, vacated or
demolished), and was legally restricted to
low-income households, or subject to
price control, or occupied by low-income
households.

HE-1.1 Adequate Sites
Responsible Department/Review Authority
Community Development Department
Timeframe
Adopt a policy by January 2024 and apply the
policy as applications on sites within the Sites
Inventory are received and processed
Funding Source
General fund (staff time)
Quantified Objective
New policy adopted
Performance Metric(s)
Measure the number of replacement housing units
entitled that are restricted to low-income
households
BLAV Senate Bill 9 Monitoring
Annually monitor the development of SB 9
applications every year beginning in 2023
to better understand their role in the Los
Gatos housing market if trends and
indicate a potential shortfall in meeting
the estimated SB 9 development in the
Sites Inventory, 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.

Implementation
HE-1.1 Adequate Sites
Responsible Department/Review Authority
Community Development Department
Timeframe
Evaluate effectiveness of SB 9 approvals every
year beginning in 2023; and identify additional
incentives and/or site capacity, if needed by 2025
Funding Source
General fund (staff time)
Quantified Objective
Prepare Annual Progress Report and issue 96 SB
9 entitlements over the eight-year period issue 12
SB 9 building permits per year
Performance Metric(s)
Number of issued SB 9 Building Permits.

BMAW Story Poles and Netting Policy
Update the Review Story Pole and
Netting Policy and explore create options
for residential or mixed-use projects with
affordable housing to reduce the
associated costs of installing story poles,
by providing an option to provide video
rendering in place of story poles for all
multi-family and mixed-use projects, and
Implementation
Policy HE-3.1 Regulatory Incentives for Affordable
Housing
Responsible Department/Review Authority
Community Development Department
Timeframe
Implement by December March 20243, and
evaluate effectiveness of reduced requirements

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Programs
all projects over 55 feet in height to
reduce constrains/cost and increase
approval certainty. Modifications already
approved by Town Council on August 1,
2023, include: use of flag rope instead of
netting; reduce story pole requirements
for multi-building projects to just represent
perimeter of site and tallest buildings; and
removal of story pole requirement for
projects with 30 percent Below Market
Price housing or 20 percent Low Income
or Very Low Income housing. Additional
modifications to further reduce impacts of
story pole policy are scheduled for review
by Town Council on December 5,
2023.currently under consideration
include, but are not limited to:
use of one or two rows of flag rope in
place of netting; use of renderings and
digit simulations; use of signage; and
reduction in the number of story poles
every year beginning in 2025; and identify
additional incentives and/or site capacity, if needed,
within six months of need identification.

Funding Source
General fund (staff time)
Quantified Objective
Reduce cost of development by modifying the story
pole requirements for affordable housing projects.

Performance Metric(s)
Measure impact of modifying the story pole policy
on the number of affordable housing units entitled
AX Local Labor Program List
Establish and post a list of local labor
unions and apprenticeship programs on
the website to encourage the developers
and contractors to hire local labor.

Implementation
Policy HE-1.4 Housing Design
Responsible Department/Review Authority
Community Development Department
Timeframe
Establish a list by December 31, 2024, to post
online.

Funding Source
General fund (staff time)
Quantified Objective
Annually update the list or upon request from a
local union.

Performance Metric(s)
N/A

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The following action matrix includes the Town’s goals and actions to affirmatively further fair housing.

Program Specific Commitment Timeline Geographic
Targeting
Eight-Year
Metric
Fair Housing Outreach and Enforcement
Program A.

Developer Forum
Meet with housing developers to
discuss constraints and housing
opportunities.

Annually Townwide
Meet with housing
developers
annually.

Program O.

Affordable
Housing
Development
Outreach to attract and support
affordable housing developers in
the Town and identify housing
opportunities.

Annually Townwide
Facilitate the
construction of 460
new homes for
moderate to lowerincome
households.

Program W.

Rental Dispute
Resolution
Program
Administer the Rental Dispute
Resolution Program. Annually Townwide
Provide counseling
to all members of
the public who
contact the Town.

Program AE. Fair
Housing Law
Education
Increase dissemination of fair
housing information.

By end of August
2023. Townwide
Add 50 new
subscribers to the
Notify me
subscriber list.

Program AM.

Santa Clara
County Fair
Housing
Consortium
Continue to support the efforts
of the Santa Clara County Fair
Housing Consortium.

Annually Townwide
Counsel 10
tenants annually
on tenant/landlord
concerns to
prevent
displacement.

Program I. Senior
Housing
Resources
Provide regularly updated senior
housing resource materials at
the Adult Recreation Center,
Library, and Farmers’ Market.

Annually Townwide
Assist three senior
households
annually though
senior housing
resources.

Program X.

Developmental
Challenges
Continue to work with the
California Department of
Developmental Services
Regional Center to inform
families about housing and
services available for persons
with developmental challenges.

Annually Townwide Assist three
families annually.

Program AN. Use
a Variety of
Communication
Methods
Provide information about
available housing resources
through a variety of
communication methods.

Quarterly Townwide
Assist three lowincome families
annually.

Program AO.

Educate SingleFamily Property
Owners Regarding
In-Fill Housing
Options
Provide education on SB 9 and
ADU’s.

Consider adding fair housing
information to SB 9 and ADU
applications/materials; new
landlords.

Quarterly Townwide
Increase the
number of ADU
building permit
applications from
2022 baseline of

25. Increase the
number of SB 9
applications from
2022 baseline of 9.

Program AN.

Community
Education on
Housing Needs
Provide education on the
problems and needs of
affordable housing as a means
of changing negative attitudes.

Annually Townwide
Celebrate
Affordable Housing
Month annually in
May by posting on
social media
accounts with
education on
affordable housing.

Program AT.

Affirmative
Marketing
Disseminate information on
available development including
providing notice of new housing
opportunities in the flyer for local
school districts in the Town.

Annually Townwide
Affirmatively
market all
affordable housing
Opportunities.

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Program Specific Commitment Timeline Geographic
Targeting
Eight-Year
Metric
New Housing Opportunities in High Resource Areas
Program D.

Additional Housing
Capacity for North
Forty Specific Plan
Increase allowed density in
North Forty Specific Plan and
facilitate buildout of the Plan.

By January 2024
North Forty Specific
Plan area (highest
resource area)
Facilitate the
construction of 45
new homes for
lower-income
households.

Program N. Funds
for Development
for Extremely Low
Income (ELI)
Households
Use Town Affordable Housing
(Below Market Price) Fund to
subsidize housing for extremely
low-income households.

Annually Townwide
Subsidize five
developments
which include
extremely lowincome
households.

Program O.

Affordable
Housing
Development
Provide incentives for affordable
housing development and Annually Townwide (all high resource areas) Facilitate the
construction of 460
new homes for
moderate to lowerincome
households (100
for moderate, 190
for low, and 170 for
very-low).

Program Q. ADUs
Initiate marketing plan, coordinate
pre-approved ADU plans, and
monitor production and
affordability of ADUs.

Monitor affordability of ADUs
through communication with
applicants (form with intent to
rent).
2023-2031 Townwide (all high
resource areas)
Facilitate
construction of at
least 200 ADUs with
a goal to facilitate
construction of up to
350 ADUs or
JADUs, with a goal
of 5% of these units
being affordable to
low income
households.

Program AB.

Allow for 100
Percent Affordable
Residential
Development in
Mixed-Use
General Plan
Designations
Amend the General Plan and
the Municipal Code to allow for
100 percent affordable
residential development without
the requirement of commercial
uses.

By June 2024 Townwide
Facilitate the
construction of
affordable units in
mixed use GP
designations.

Housing Mobility
Program J. Small
Multi-Unit “Missing
Middle” Housing
Update zoning code and
promote small multi-unit housing
program, with goal of providing
housing for families, seniors,
and students. Facilitate small
multi-unit housing in the low to
medium density designations.

By January 2024 Townwide
Facilitate the
development of 50
units of small multiunit housing over
eight years.

Program L. Below
Market Price
Program
Conduct a study to evaluate the
existing BMP Program and
recommend changes to the
program to increase the number
of units constructed.

By June 2025 Townwide
Increase number
of BMP units
annually by five
units (from 257
baseline).

Program V.

Housing
Opportunities for
Persons Living
with Disabilities
Review and update regulations
and encourage implementation
of Universal Design.

Amend Zoning Code to increase
housing for persons with
disabilities.
2023-2031
By December
2025.

Townwide
Increase housing
for persons with
disabilities by 90
units.

Program AP.

Special Needs
Housing
Establish streamlined
procedures for special needs
housing.

By January 2028
By January 2024
Townwide
Adopt Zoning Cod
amendments to
facilitate the
construction of

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Program Specific Commitment Timeline Geographic
Targeting
Eight-Year
Metric
Amend the Zoning Code to
remove barriers to building
special needs housing
units for special
needs populations.

Program X.

Assistance for
Persons with
Developmental
Challenges
Work with local and/or regional
partners to provide rental
assistance for persons with
developmental challenges.

Annually Townwide
Provide rental
assistance for
persons with
disabilities.

Program Q: ADUs
Promote the use of Housing
Choice Vouchers (HCVs) and
homesharing (once established)
to make the units available to
lower income households.

By December
2025 Townwide
Initiate a marketing
plan and
coordinate efforts
for HCVs and
homesharing
programs.

Program T:

Nonprofit
Affordable
Housing Providers
Pursue a homesharing program
and market program annually.

By December
2025; Annually Townwide Facilitate 5 matches per year.

Place-based Strategies for Neighborhood Improvement
Program AI.

Countywide Home
Repair Programs
Support home repair programs
including Habitat for Humanity
East Bay/Silicon Valley,
Rebuilding Together, Housing
Trust of Santa Clara County,
and contribute funding from the
Town’s Below Market Price
monies to support these
programs.
2023-2031
Townwide with
emphasis on
central and western
tracts where
substandard
housing conditions
and aging units are
more prevalent.

Complete three
minor home
repairs or
accessibility
improvements for
lower income
households
annually.

Program AJ.

Residential
Rehabilitation
Program
Create a new program to assist
lower income homeowners,
including senior and disabled
households, with funding for
home repairs and
improvements.

By December
2026 Townwide
Provide
rehabilitation to
five low-income
homeowner units
annually.

AFFH: CIP
Projects
Complete projects related to
public facilities and
transportation infrastructure
outlined in the Capital
Improvement Program, including
the Los Gatos Adult Recreation
Center Restroom Remodel for
ADA Compliance and Shannon
Road Pedestrian and Bikeway
Improvements.

By 2030
Townwide with
emphasis on north
and western areas
of the Town.

Complete at least
three CIP projects
during the planning
period.

Tenant Protection and Anti-Displacement
Program Z.

Stabilize Rents
Study and implement
recommendations with regard to
the Town’s Rental Dispute
Mediation and Arbitration
Ordinance 2128 to help further
stabilize rents for long-term
residents.

By June 2025 Townwide
Implement
improvement
opportunities for
the Rental Dispute
Mediation and
Arbitration
Ordinance
Program AG.

Preserve “At-Risk”
Affordable
Housing Units
Monitor affordable, multi-family
housing units in the Town to
ensure that they retain their
affordability status.

Annually Townwide
Preserve
affordability of all
affordable units.

Program AU.

Replacement Unit
Program
Adopt a policy and apply the
policy as applications on sites
within the Sites Inventory are
received and processed
By January 2024 Townwide
Require
replacement
housing for 100%
of displaced lowincome
households.

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A
Accessible. The ability to accommodate everyone
regardless of ability or pre-existing condition.

Accessory Dwelling Unit (ADU). An accessory
dwelling unit is a detached or attached dwelling unit.

It shall include permanent provisions for living,
sleeping, eating, cooking, and sanitation and is
generally smaller and located on the same parcel as
a proposed or exiting primary dwelling. An accessory
dwelling unit also includes efficiency units and
manufactured homes.

Acres (Gross). An acre is a measurement of land
area equal to 43,560 square feet. The gross acreage
of a lot includes all land within the boundaries of the lot (including, but not limited to, easements). The
gross acreage is defined as the total area, measured
on a horizontal plane, and is the measure used for
determination of density and intensity calculations.

Acres (Net). A reduced lot size based average lot
slope or other factors and used for the purpose of
calculating the maximum allowed floor area or
density.

Affirmative Furthering Fair Housing. Taking
meaningful actions, in addition to combating
discrimination, that overcome patterns of segregation
and foster inclusive communities free from barriers
that restrict access to opportunity based on protected
characteristics. Specifically, affirmatively furthering fair housing means taking meaningful actions that,
taken together, address significant disparities in
housing needs and in access to opportunity,
replacing segregated living patterns with truly
integrated and balanced living patterns, transforming
racially and ethnically concentrated areas of poverty
into areas of opportunity, and fostering and
maintaining compliance with civil rights and fair
housing laws. The duty to affirmatively further fair
housing extends to all of a public agency’s activities
and programs relating to housing and community
development. (Gov. Code, § 8899.50, subd. (a)(1).)”
Affordable Housing. Under State and Federal
statutes, affordable housing is housing which costs
no more than 30 percent of gross household income.

Housing costs include rent or mortgage payments,
utilities, taxes, insurance, homeowner association
fees, and other related costs.

Americans with Disabilities Act (ADA). A civil
rights law that prohibits discrimination against
individuals with disabilities in all areas of public life, including jobs, schools, transportation, and all public and private places that are open to the general
public.

Area Median Income (AMI). A key metric in
affordable housing. Area median income is defined
as the midpoint of a specific area’s income
distribution and is calculated on an annual basis by
the Department of Housing and Urban Development.

B
Below Market Program (BMP). The BMP Program
implements the Town of Los Gatos’ inclusionary
zoning ordinance, which requires that a portion of the
new residential construction in Los Gatos be
dedicated to affordable housing.

C
California Environmental Quality Act (CEQA).

State law that requires State and local agencies to
evaluate and disclose the significant environmental
impacts of discretionary actions and to avoid or
mitigate those impacts, if feasible.

Commercial. Retail, service, and entertainment
uses (e.g., shopping centers, smaller stores,
restaurants).

D
Density. Residential developments are regulated by
an allowed density range (minimum and maximum)
measured in “dwelling units per acre.” Residential
density is calculated by dividing the number of
housings units on the site (excluding accessory units)
by the gross lot area.

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or alteration of structures, roads, utilities, and other facilities; installation of septic systems; grading
activities; depositing of refuse; disposal of any
material; dredging or mineral extraction, debris or fill materials; and the clearing of natural vegetation with
the exception of agricultural activities. This does not include routine repair and maintenance activities.

Dwelling Unit. A room or group of rooms (including
sleeping, eating, cooking, and sanitation facilities, but not more than one kitchen) that constitutes an
independent housekeeping unit, occupied or intended
for occupancy by one household on a long-term
basis.

E
Environmental Justice. The fair treatment of
people of all races, cultures, incomes, political and
religious affiliation, and national origins with respect to the development, adoption, implementation, and
enforcement of environmental laws, regulations, and
policies.

Equality. Is sameness; everyone gets the same
thing. Equality focuses on everyone getting the same
opportunity, but often ignores the realities of historic exclusion and power differentials among whites and
other racialized groups.

Equity. Ensures that outcomes in the conditions of
well-being are improved for marginalized groups,
lifting outcomes for all. Equity is a measure of justice.

F
Federal Fair Housing Act of 1968. Prohibits
discrimination concerning the sale, rental, and
financing of housing based on race, color, religion,
national origin, - and was later amended to include
familial status and disability.

Fire Hazard Severity Zone. A mapped area that
designates zones, based on factors such as fuel,
slope, and fire weather, with varying degrees of fire
hazard (e.g., moderate, high, and very high).

Floor Area Ratio (FAR). Total building size is
regulated by a maximum FAR standard. FAR means
the gross floor area of a building or buildings on a
zoning plot divided by the area of such zoning plot.

Floor area means the entire enclosed area of all
floors that extend more than four (4) feet above the
existing or proposed grade, measured from the outer
face of exterior walls or in the case of shared walls
from the centerline. The maximum FAR standard
limits the overall size of development on a property.

G
Goal. A statement that describes, in general terms, a
desired future condition or “end” state. Goals
describe ideal future conditions for a topic and tend to be very general and broad.

H
Housing Element Advisory Board. A Town
Council appointed advisory board for preparation of
the Housing Element.

I
Implementation Program. An action, activity, or
strategy to be taken by the Town to carry out an
adopted policy to achieve a specific goal or objective.

Infill Development. Development of vacant or
underutilized land (usually individual lots or leftover properties) within areas that are already largely
developed.

Intensity. Developments are regulated by an
allowed intensity, measured by a maximum FAR.

Intensity is a measure of the extent to which a land
parcel is developed in conformity with the zoning
J
K
L
Land Use Designation. A specific geographic
designation with associated land use or management
policies and regulations.

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Lot Coverage. Lot coverage is the percentage of a
lot that is covered by all buildings compared to the
total area of the lot.

M
Missing Middle Housing. Missing middle housing is
a term used to describe a range of house-scale
buildings with multiple units that are compatible in
scale and form with detached single-family homes.

Common housing types include duplexes; triplexes;
fourplexes; courtyard apartments; cottage courts;
townhomes; triplex stacked (vertical); and live-work
spaces. Also referred to as “Small Multi-Unit
Housing”.

Mixed-Use Development. Development projects
where a variety of uses such as office, commercial,
institutional, and residential are combined in a single building or on a single site in an integrated project.

These developments are regulated by both the
maximum residential density (units per acre) and
maximum FAR standard that incorporates both the
residential and non-residential building floor areas.

Multi-Family Residential. Residential buildings
containing units built one on top of another and those
built side-by-side which do not have a ground-to-roof
wall and/or have common facilities (i.e., attic,
basement, heating plant, plumbing, etc.). Accessory
dwelling units (ADUs) are not considered multi-family
residential.

N
O
Objective Design Standards. Objective standards
are defined under State law as “standards that
involve no personal or subjective judgement by a
public official and are uniformly verifiable by
reference to an external or uniform benchmark or
criteria available and knowable by both the
development applicant or proponent and the public
official prior to submittal “(California Government
Code, Section 65913.4).

P
Persons With Special Needs. Includes extremely
low-income households, seniors, overcrowded and
large-family households, the homeless population,
those in need of emergency shelter, youth aging out
of foster care, female-headed or single-parent
households, and persons with disabilities, including
developmental challenges.

Planning Commission. An appointed commission
responsible for conducting public hearings on the
General Plan and Zoning Code modifications,
considering the input of the public, and making
recommendations to the Town Council on these
matters.

Planned Development. The Planned Development
(PD) overlay zone provides alternative standards for
housing developments with a minimum of 40 percent
of the units affordable to households of very low, low, or moderate income.

Policy. A statement that guides a specific course of
action for decision-makers to achieve a desired goal.

Q
R
Regional Housing Need Allocation (RHNA). A
State-mandated process to identify the total number
of housing units (by affordability level) that each
jurisdiction must accommodate in its Housing
Element.

S
Setback. The distance between a building and the
property line or other buildings.

Single-Family Residential. Land with detached
buildings with not more than one primary dwelling
unit for residential uses, such as single-family homes, townhomes, and condominiums.

Specific Plan. A planning tool authorized by
Government Code Section 65450, et seq., for the
systematic implementation of the General Plan for a
defined portion of a community’s planning area. A
specific plan must specify in detail the land uses,

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land uses, phasing of development, standards for the
conservation, development, and use of natural
resources, and a program of implementation
measures, including financing measures.

Small Multi-Unit Housing. Also known as “Missing
middle housing” is a term used to describe a range of
house-scale buildings with multiple units that are
compatible in scale and form with detached singlefamily homes. Common housing types include duplexes; triplexes; fourplexes; courtyard apartments;
cottage courts; townhomes; triplex stacked (vertical);
and live-work spaces.

T
Town Council. The political body which formulates
and implements policies in Los Gatos. It is the Town
Council, through its decision-making authority, that
affirms the policy direction and priorities contained
within this General Plan. The Town Council is
ultimately responsible for adoption of the General
Plan, as well as the regulations, capital improvement
programs, and financing mechanisms that implement
the General Plan.

U
V
Vacant Land. Land that is not actively used for any
purpose, including land that is not improved with
buildings or site facilities and is sizeable in area to accommodate development.

W
Wildland/Urban Interface (WUI). Areas where
homes or other structures are built near or among
lands prone to wildland fire.

X
Y
Z
Zoning. The division of the Town into districts, and
the application of different regulations in each district.

Zoning District. A part of the community designated
by the local zoning ordinance for specific of land
uses, such as single-family residential or
neighborhood commercial uses. Only the primary
permitted land uses, their accessory uses, and any
conditional uses permitted in the zoning district may
be placed on the land in that part of the community.

Zoning Ordinance. The adopted zoning and
planning regulations of a town, city, or county that
establish development standards for each zone, such
as minimum lot size, maximum height of structures,
building setbacks, and yard size.

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List of Acronyms
AB Assembly Bill
ABAG Association of Bay Area Governments
ADA Americans with Disabilities Act
ADU Accessory dwelling unit
AFFH Affirmative Furthering Fair Housing
AHOZ Affordable Housing Overlay Zone
AMI Area Median Income
BMP Below Market Program
CBD Central Business District land use
designation
CC Community Commercial land use
designation
CD Community Design Element
CEQA California Environmental Quality Act
CMU Mixed-Use land use designation
CUP Conditional Use Permit
DFEH California Department of Fair
Employment in Housing
du/ac Dwelling units per acre
EIR Environmental Impact Report
FAR Floor area ratio
FFH Federal Fair Housing Act
HCD Department of Housing and Community
Development
HDR High Density Residential land use
designation
HDS&G Hillside Development Standards and
Guidelines
HEAB Housing Element Advisory Board
HR Hillside Residential land use designation
HUD Department of Housing and Urban
Development
LDR Low Density Residential land use
designation
LHP Landmark and Historic Preservation
Zone
LI Light Industrial land use designation
LID Low Impact Development
LU Land Use Element
MDR Medium Density Residential land use
designation
MTC Metropolitan Transportation
Commission
MU Mixed-Use land use designation
NFHA National Fair Housing Alliance
NF-SP North Forty Specific Plan
PD Planned Development
PS Public School Zone
RHNA Regional Housing Needs Allocation
RHND Regional Housing Needs Determination
RHM Mobile Home Residential
SB Senate Bill
WUI Wildland/Urban Interface
.

Affirmatively Furthering Fair Housing Report A

APPENDIX

Appendix A. AFFH Report
JanuaryNovember September March 20232024 Appendix A A-1 A.1 What is AFFH?
The State of California’s 2018 Assembly Bill (AB 686) requires that all public agencies in the state affirmatively further fair housing (AFFH) beginning January 1, 2019. Public agencies receiving funding from the U.S.

Department of Housing and Urban Development (HUD) are also required to demonstrate their commitment to AFFH. The Federal obligation stems from the fair housing component of the Federal Civil Rights Act mandating Federal fund recipients to take “meaningful actions” to address segregation and related barriers to fair housing choice.

AB 686 requires all public agencies to “administer programs and activities relating to housing and community development in a manner that affirmatively furthers fair housing and take no action inconsistent with this obligation.”1
AB 686 also makes changes to Housing Element Law to incorporate requirements of AFFH as part of the Housing Element and General Plan to include an analysis of fair housing outreach and capacity, integration and segregation, access to opportunity, disparate housing needs, and current fair housing practices.

Affirmatively Furthering Fair Housing
“Affirmatively furthering fair housing” means taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics.

Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws. The duty to affirmatively further fair housing extends to all of a public agency’s activities and programs relating to housing and community development. (Gov. Code, § 8899.50, subd.(a)(1).)” Source: California Department of Housing and Community Development Guidance, 2021, page 14.

Analysis of the 5th Cycle Housing Element

Goals of the Previous Housing Element
Many of the goals, policies, and programs that were presented in the 5th Cycle Housing Element are still applicable to the current 6th Cycle Housing Element. Some of the goals, policies, and programs included in this Housing Element serve as a continuation of policies identified within the previous Housing Element; whereas, others are new and concentrate more on promoting AFFH. The following are a list of goals from the 5th Cycle Housing Element:
 Goal HOU-1: Expand the choice of housing opportunities for all economic segments of the community by supporting the development of affordable housing in a variety of types and sizes, including a mixture of ownership and rental housing.
 Goal HOU-2: Maintain and/or adopt appropriate land use regulations and other development tools to encourage the development of affordable housing that is compatible with the neighborhood and the community.
1 California Department of Housing and Community Development Guidance, 2021, page 9.

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 Goal HOU-3: Preserve existing residential opportunities, including the existing affordable housing stock.
 Goal HOU-4: Ensure that all persons have equal access to housing opportunities.  Goal HOU-5: Retain and expand affordable housing opportunities for seniors.  Goal HOU-6: Mitigate Town governmental constraints to affordable and special needs housing development.
 Goal HOU-7: Encourage residential construction that promotes green building and energy conservation practices.
 Goal HOU-8: Ensure that the Town has sufficient resources and takes appropriate measures to implement the Housing Element.
 Goal HOU-9: Maintain the Town’s 2005 jobs-to-household ratio of 1.5 jobs per household.

The goals listed above are still applicable and support producing, providing, and retaining housing within the Town. The goals of the 6th Cycle Housing Element have refined the goals of the 5th Cycle Housing Element to state six clear goals that complement the polices and implementation programs, further strengthening the Town’s housing goals.

Production of Housing
The 5th Cycle Housing Element identified a Regional Housing Needs Allocation (RHNA) of 619 housing units in Los Gatos between January 1, 2015, and January 31, 2023. The RHNA was divided into the following income categories:
 100 units affordable to extremely low-income households.  101 units affordable to very low-income households.
 112 units affordable to low-income households.
 132 units affordable to moderate-income households.
 174 units affordable to above moderate-income households.

During the 2015–2023 planning period, as of December 31, 2022, 683 new units were added to the Town’s housing stock, achieving approximately 110 percent of the Town’s RHNA. Units affordable to moderate- and lower-income households that were created during the planning period include density bonus senior rental units (North Forty Phase I), an attached condominium (Union Avenue), detached townhomes (Knowles Avenue) produced through the BMP program, and accessory dwelling units. The Town exceeded the required housing units per RHNA in the moderate and above moderate-income categories; however, fell short in the very low- and low-income categories. Many of the goals, policies, and programs added and modified in this document have the goal and objective of increasing the total production of very low- and low-income category housing units during the 6th Housing Element cycle. For a deeper analysis of the previous Housing Element Update, refer to Appendix E.

Meaningful Steps towards AFFH
The Town’s overarching goal of furthering AFFH and creating more housing opportunities has made a concentrated effort to assist the most vulnerable populations. These vulnerable populations include, but are not limited to: the elderly; large households; extremely low income households; individuals experiencing homelessness; and individuals with disabilities. Many of the programs identified in this 6th Cycle Housing Element are designed to create a measurable impact on the affordable housing options provided to the afore-mentioned populations. These policies include:
 Implementation Program JI: Helping Seniors Housing Resources Program  Implementation Program L: Rental Housing for Large Families  Implementation Program NP: Funds for Development for Extremely Low Income (ELI) Households  Implementation Program AIQ: Habitat for HumanityCountywide Home Repair Program

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 Implementation Program UZ: Increased Range of Housing Opportunities for the Homeless  Implementation Program VAB: Housing Opportunities for Persons Living with Disabilities Accessibility Design Features
 Implementation Program APD: Special Needs Housing
 Implementation Program XAF: Rental Assistance for Persons with Developmental Challenges  Implementation Program YAG: Supportive Services for the Homeless  Implementation Program ZAH: Stabilize Rents
The Town of Los Gatos implements these programs through funding allocation or through partnerships with other local organizations and jurisdictions.

A.2 History of Segregation in the Region
The United States’ oldest cities have a history of mandating segregated living patterns and Northern California cities are no exception. ABAG, in its recent Fair Housing Equity Assessment, attributes segregation in the Bay Area to historically discriminatory practices, highlighting redlining and discriminatory mortgage approvals as well as “structural inequities” in society, and “self-segregation” (i.e., preferences to live near similar people).

Researcher Richard Rothstein’s 2017 book The Color of Law: A Forgotten History of How Our Government Segregated America chronicles how the public sector contributed to the segregation that exists today. Rothstein highlights several significant developments in the Bay Area region that played a large role in where the region’s non-White residents settled.

In 1955, builders began developing workforce housing for the Ford Corporation’s plant in the Bay Area, including Santa Clara County. Initially the units were segregated as no one would sell to the local Black/African American workers. The American Friends Service Committee (AFSC) worked to find builders who would build integrated subdivisions. Unfortunately, after four purchased plots were subsequently rezoned to prevent integrated housing, the original builder quit. After multiple additional iterations, Black/African American workers had “become so discouraged about finding housing opportunities” that they began carpooling from outside cities such as Richmond2.

A 2018 Berkeley publication titled, Racial Segregation in the San Francisco Bay Area, describes Los Gatos among the “most segregated, heavily white cities in the county” with Santa Clara County containing “no truly integrated city”3. The study also delved into the history of segregation, highlighting 1960s-era laws and practices connected to urban renewal projects that displaced established communities of color. This was coupled with the building of transportation infrastructure that resulted in a net loss of affordable housing due to a lack of one-forone replacement. Figure A-1 through Figure A-7 illustrate the demographic distribution within Santa Clara County.

History of Segregation in the Region
This history of segregation in the region is important not only to understand how residential settlement patterns came about, but, more importantly, to explain differences in housing opportunity among residents today. In sum, not all residents had the ability to build housing wealth or achieve economic opportunity. This historically unequal playing field in part determines why residents have different housing needs today.
2 Source: book The Color of Law: A Forgotten History of How Our Government Segregated America by Richard Rothstein, p 121. 3 Racial Segregation in the San Francisco Bay Area, Part 1 | Othering & Belonging Institute (berkeley.edu)

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In addition to historical discriminatory practices that embedded segregation into living patterns throughout the Bay Area, it’s also necessary to recognize the historical impacts of colonization and genocide on Indigenous populations and how the effects of those atrocities are still being felt today. The original inhabitants of presentday San Mateo County are the Ramaytush Ohlone, who have “…lived on the San Francisco Peninsula for thousands of years and continue to live here as respectful stewards of the land”4. However, “[d]ue to the devastating policies and practices of a succession of explorers, missionaries, settlers, and various levels of government over the centuries since European expansion, the Ramaytush Ohlone lost the vast majority of their population as well as their land”5. The lasting influence of these policies and practices have contributed directly to the disparate housing and economic outcomes collectively experienced by Native populations today6.

The timeline of major Federal Acts and court decisions related to fair housing choice and zoning and land use appears on the following page.

As shown in the timeline, exclusive zoning practices were common in the early 1900s. Courts struck down only the most discriminatory and allowed those that would be considered today to have a “disparate impact” on classes protected by the Fair Housing Act. For example, the 1926 case Village of Euclid v. Amber Realty Co. (272 U.S. 365) supported the segregation of residential, business, and industrial uses, justifying separation by characterizing apartment buildings as “mere parasite(s)” with the potential to “utterly destroy” the character and desirability of neighborhoods. At that time, multifamily apartments were the only housing options for people of color, including immigrants.

The Federal Fair Housing Act was not enacted until nearly 60 years after the first racial Zoning Ordinances appeared in U.S. cities. This coincided with a shift away from Federal control over low-income housing toward locally-tailored approaches (block grants) and market-oriented choice (Section 8 subsidies), the latter of which is only effective when adequate affordable rental units are available.

Racial covenants were used across the United States, and though they are now illegal, the language remains in many property records. A homeowner may not even know that their deed includes a racial covenant, it is easily missed in the paperwork that comes with buying a home.

This section illustrates the demographic distribution of residents in Los Gatos and Santa Clara County compared to the Bay Area region. These analyses offer important in-sight on patterns of segregation and integration as well as equitable access to opportunity for residents across the Bay Area. Primary findings from these comparative analyses are bulleted and provided before figures/maps.

Figures A-1 and A-2 show the percent of non-White residents by block group in Los Gatos and the region in 2020.

Key differences between Santa Clara County and the Bay Area include:
 Los Gatos is far less diverse than surrounding cities and the county overall: of census tracts with nonWhite residents, groups comprise less than half of the total resident population. Saratoga and Cupertino follow different patterns with non-White residents comprising more than 60% of the population in particular tracts.
 Areas of Santa Clara County with the largest share of non-White residents include San Jose, Sunnyvale, and Santa Clara, all of which have census tracts where non-White residents comprise up to 100 percent of the total resident population.
4 https://www.smcoe.org/for-communities/indigenous-people-of-san-mateo-county.html 5 https://www.smcoe.org/for-communities/indigenous-people-of-san-mateo-county.html 6 https://www.americanprogress.org/article/systemic-inequality-displacement-exclusion-segregation/

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-5
 These trends are similar for the region overall though non-White groups are significantly more likely to live in San Francisco, Daly City, Palo Alto, San Leandro, Hayward, and Fremont. There are similar concentrations in South San Francisco and Redwood City.

Figure A-1. Racial Demographics by Block Group, Los Gatos, 2020 Source: California Department of Housing and Community Development AFFH Data Viewer.

HCD Revised Draft 2023-2031 Housing Element
A-6 Appendix A JanuaryNovemberSeptember March 20232024
Figure A-12 Regional Racial Demographics by Block Group, 2020 Source: California Department of Housing and Community Development AFFH Data Viewer

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-7
Figure A-3 shows census tracts in Los Gatos where Asian residents are the predominant population. As shown in the map, Los Gatos has no predominantly Asian census tracts. Comparatively, Saratoga has Asian majority census tracts with a sizeable gap between 10 percent and 50 percent.

Figure A-3 Asian Majority Census Tracts, Los Gatos, 2018 Source: California Department of Housing and Community Development AFFH Data Viewer.

HCD Revised Draft 2023-2031 Housing Element
A-8 Appendix A JanuaryNovemberSeptember March 20232024
In line with these trends, there are no census tracts in Los Gatos where Hispanic or Latino residents are the predominant population similar to census tracts surrounding communities (Figure A-4).

Figure A-4 Hispanic Majority Census Tracts, Los Gatos, 2018 Source: California Department of Housing and Community Development AFFH Data Viewer

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-9
Figures A-5 and A-6 show racial segregation and integration patterns in 2010 and 2020 for Los Gatos and Santa Clara County. Key differences between Los Gatos and the county include:
 Los Gatos has not changed since 2010 while surrounding areas have experienced substantial shifts in racial segregation trends. This is particularly notable in Saratoga which shifted from high White segregation to high POC segregation.
 The number of census tracts that are racially integrated increased over the last decade, the majority of which are located around Campbell and Santa Clara.
 Los Gatos was the only municipality in Santa Clara County where all census tracts are highly segregated for White residents in both 2010 and 2020.

HCD Revised Draft 2023-2031 Housing Element
A-10 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-5. Racial Segregation/Integration by Census Tract, Los Gatos and Santa Clara County, 2010 Source: California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-11
Figure A-6. Racial Segregation/Integration by Census Tract, Los Gatos and Santa Clara County, 2020 Source: California Department of Housing and Community Development AFFH Data Viewer.

Figure A-7 illustrates the Home Owners’ Loan Corporation (HOLC) redlining grades for Santa Clara County.

Created during the New Deal Era, the HOLC established a neighborhood ranking system known as redlining to reflect the demographic and socioeconomic composition of varying neighborhoods across cities in California.

Maps and neighborhood ratings set the rules for real estate practice: with support from the federal government,

HCD Revised Draft 2023-2031 Housing Element
A-12 Appendix A JanuaryNovemberSeptember March 20232024 many banks used the grading system for mortgages and denied approval in areas with the lowest grade.7 These practices made it nearly impossible for individuals in these areas to transition to homeownership. In Santa Clara County, grades were largely assigned to neighborhoods in Santa Clara and San Jose with grades ranging between B (still desirable) and D (hazardous). Los Gatos was not formed when the HOLC maps were active and, as such, redlining grade maps do not exist.

Figure A-7. HOLC Redlining Grade, Santa Clara County, 2021 Source: University of Richmond and California Department of Housing and Community Development AFFH Data Viewer. 7 University of Richmond’s Digital Scholarship Lab and HCD, 2021.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-13
Current patterns and trends of segregation and integration in Los Gatos, Santa Clara County, and the Bay Area are provided by race and ethnicity, disability status, median household income, and familial status in the following sections.

Major Public and Legal Actions that Influence Fair Access to Housing A.3 Town History
Los Gatos is located at the base of the Santa Cruz Mountains at the southwest edge of Santa Clara County and approximately 50 miles south of San Francisco. The natural landscape includes picturesque hillsides, creeks, and valley flatlands. Los Gatos is in an area once occupied by Indigenous People, which extends from the point where the San Joaquin and Sacramento rivers flow into the San Francisco Bay to Point Sur, with the interior Coastal Ranges most likely constituting the inland boundary. The Indigenous People lived sustainably in the area rich with fertile soils, abundant wildlife, and other natural resources. Before colonization, Indigenous People lived in base camps of tule-reed houses and seasonal specialized camps. Indigenous People ate food gained by hunting, gathering, and fishing. Mussels were particularly important to their diet, as well as sea mammals and acorns.

Seven Franciscan missions were built in Indigenous People's territory in the late 1700s, and all Indigenous People were eventually forced into the mission system. After the establishment of the missions, the population of Indigenous People of this area was decimated from roughly 10,000 people in 1770 to 1,300 in 1814. In 1973, the population of Indigenous People of this area was estimated at fewer than 300 after what is widely cited as a genocide. The descendants of Indigenous People of this area united in 1971 and have since arranged political and cultural organizations to revitalize, maintain, and pass on their culture.

HCD Revised Draft 2023-2031 Housing Element
A-14 Appendix A JanuaryNovemberSeptember March 20232024 In 1839, El Rancho de Los Gatos was established by a Mexican land grant and was so named because of the large number of mountain lions in the area. Agriculture and timber harvesting were mainstays of the local economy. In 1854, James Alexander Forbes built a flour mill along Los Gatos Creek. In 1860, the first hotel was opened to provide a stage stop on a toll road between San Jose and Santa Cruz. The railroad reached Los Gatos in 1878, catalyzing residential and commercial growth. By 1887, the population had grown to 1,500 and the Los Gatos community voted to incorporate.

Because of its distance from other centers of population, Los Gatos developed as a complete community including residential, business, and industrial elements. Today, Los Gatos is part of the Silicon Valley and its fastpaced economy. Los Gatos has more than 3,000 businesses with a full range of services for its approximate 30,000 residents. The Town is a destination for visitors who are attracted to its small-town feel, beautiful natural setting, recreation opportunities, restaurants, and specialty shopping within a pedestrian friendly, historic downtown setting.

As with many of its neighboring jurisdictions, the historic land use patterns of Los Gatos – predominantly singlefamily housing around a downtown core – is discriminatory by nature.8 The Town’s land use and zoning policies have traditionally limited housing types allowed in the Town to medium to low density residential, favoring singlefamily detached projects.

Racially restrictive covenants and property deed restrictions were popular in the 1920s. Though no longer in effect, these covenants have lasting impacts on the racial and ethnic makeup of the Town. However, the effect of the racial covenants has diminished with time, and the Town has gone from approximately 86 percent White in 2000 to approximately 72 percent White in 2020. The increasing diversity of the Town indicates that impacts of racial covenants are decreasing and the primary factors limiting housing mobility and choice in the Town currently are household wealth, low density zoning, and high housing costs. Los Gatos will rezone approximately 87 acres with a Housing Element Overlay Zone (HEOZ) to allow for higher densities to encourage mixed-use and multifamily development. The HEOZ, along with ADUs, and SB 9 will accommodate the Town’s need for lower and moderate-income housing.

A.34 Report Content and Organization
This Fair Housing Assessment follows the April 2021 State of California State Guidance for AFFH.

Section I. Fair Housing Enforcement and Outreach Capacity reviews lawsuits/enforcement actions/complaints against the jurisdiction; compliance with State fair housing laws and regulations; and jurisdictional capacity to conduct fair housing outreach and education.

Section II. Integration and Segregation identifies areas of concentrated segregation, degrees of segregation, and the groups that experience the highest levels of segregation.

Section III. Access to Opportunity examines differences in access to education, economic development, and healthy environments.

Section IV. Disparate Housing Needs identifies which groups have disproportionate housing needs including displacement risk.

Section V. Contributing Factors and Fair Housing Action Plan identifies the primary factors contributing to fair housing challenges and the Plan for taking meaningful actions to improve access to housing and economic opportunity.
8 “Single-family zoning emerged and replaced race-based zoning as a tool for segregating communities by restricting more affordable housing options, such as apartments or condominiums.” Affirmatively Furthering Fair Housing: Guidance for All Public Entities and for Housing Elements (HCD: April 2021) p. 6, available at https://www.hcd.ca.gov/communitydevelopment/affh/docs/affh_document_final_4-27-2021.pdf

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-15
Appendices
 Map and Data packet, including Fair Housing Organizations in Santa Clara County mission, services, and contact information.
 State Fair Housing Laws and Regulations, summary of key State laws and regulations related to mitigating housing discrimination and expanding housing choice.

A.45 Primary Findings
This section summarizes the primary findings from the Fair Housing Assessment for Los Gatos including the following sections: fair housing enforcement and outreach capacity, integration and segregation, access to opportunity, disparate housing needs, and contributing factors and the Town’s Fair Housing Action Plan.  Population growth trends in Los Gatos are significantly lower than the county and regional index rates.

The Town has grown 15 percent since 1990, while Santa Clara County grew by 31 percent.  Los Gatos diverges from the county and region overall in racial composition with more than double the county share of non-Hispanic White population (72 percent versus 32 percent for Santa Clara County).

Yet Los Gatos’ residents have grown more racially diverse since 2000 with the non-Hispanic white population declining by 14 percentage points and Asian residents increasing in population from eight percent to 15 percent in 2019.
 Conversely, the types of households in Los Gatos mirror the county and are similar to the Bay Area with 58 percent married couples (57 percent in Santa Clara County and 51 percent in the Bay Area). Household size is in line with the county, except for five or more person households, for which Los Gatos has a smaller share.
 Los Gatos has a higher share of high-income earners (greater than 100 percent AMI) than the county and Bay Area (65 percent versus 55 percent and 52 percent respectively). Accounting for race and ethnicity, Asian households are much more likely to comprise high income earners (72 percent), especially when compared to Black/African American and Hispanic households (50 percent and 46 percent, respectively).  In 2015, the income segregation in Los Gatos between lower-income residents and other residents was higher than the average value for Bay Area jurisdictions. Segregation also exists among racial groups, yet is slowly declining.
 Poverty rates are minimal but do vary across races and ethnicities with Hispanic residents experiencing the highest poverty rate (although still a very low six percent) and Black/African Americans the lowest (0.7 percent).
 The job to household ratio for Los Gatos tracks closely with Bay Area and is lower than Santa Clara County’s, indicating that Los Gatos is less of a commuter Town than surrounding jurisdictions with much higher job to household ratios. This differs, however, by wage, with jobs to household ratios much higher for low wage workers who cannot afford to live in the Town. Los Gatos has twice as many jobs as households for low wage jobs.
 Los Gatos’ housing opportunities are limited by pricing, and both rental and home values are higher than the county median. Eighty-three percent of houses are valued at more than one million dollars; Zillow reports Los Gatos’ market average value at more than three million dollars. The average value of homes in Los Gatos is 63 percent higher than the County’s 1.3-million-dollar average value. Sixty-three percent of rentals charge 2,000 dollars or more a month, compared to 56 percent in Santa Clara County. Los Gatos does not have any public housing and only a small portion of the Town contains any Housing Choice Voucher usage, a minimal 0-5 percent.
 Nearly three-quarters of the Town’s housing are single-family units.

HCD Revised Draft 2023-2031 Housing Element
A-16 Appendix A JanuaryNovemberSeptember March 20232024  Housing cost burden in Los Gatos is lower than nearby cities but differs by race and ethnicity, and by tenure (renters/owners). Asian households experience the lowest rates of cost burden (30 percent) in the Town, followed by non-Hispanic White households (31 percent). This is followed by Black/African American household (34 percent) and Hispanic households (37 percent). Other/Multiple Race households (45 percent) are the most likely to be cost burdened (45 percent). Owners experience cost burden at a lower rate (28 percent) than renters (42 percent).
 Mortgage denial rates vary little by race and ethnicity, with 55 percent to 65 percent of loans originated.

Other than Asian applicants, however, applications from non-White applicants are very low in numbers.  Saratoga Elementary School, Los Gatos Union Elementary School, and Los Gatos-Saratoga Union High School Districts serve the majority of Los Gatos residents. The most up-to-date performance rankings show that the Los Gatos-Saratoga high school with very few Black/African American or Native American students. Asian students experienced higher educational outcomes compared to other students, scoring

93.8 percent in a 2019 College/Career Indicator metric. White and Hispanic students scored 71 percent and 64.6 percent, respectively.

A.56 Contributing Factors and Fair Housing Issues
The disparities in housing choice and access to opportunity discussed above stem from historical actions in the broader region, socioeconomic factors that have limited employment and income growth among non-White and Hispanic residents, and a shortage of housing units built to accommodate growth.

Fair Housing Issue
The Town lacks information on fair housing law and discrimination complaint filing procedures on the Town website. Current outreach practices may not provide sufficient information related to fair housing, including federal and state fair housing law, and affordable housing opportunities.

Los Gatos’ very low production of affordable and market rate housing limits housing choices of all but the highest income households.

Priority Level: High
Contributing factors:
 The Town currently lacks adequate fair housing testing, monitoring, or targeted outreach. Specifically, Town efforts should include outreach to specific communities where housing needs are more prevalent.

The Town may lack sufficient education and outreach related to reasonable accommodations and ADA laws based on the proportion of complaints related to disability status. Further, while fair housing testing was conducted in the County, fair housing tests in Los Gatos may be insufficient for monitoring housing discrimination.
 To address this issue, the 6th cycle Housing Element includes several outreach efforts to affirmatively further fair housing, including targeted outreach and annual efforts.

Fair Housing Issue
Los Gatos’ very low production of affordable and market rate housing limits housing choices of all but the highest income households.

Priority Level: High

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-17
Contributing factors:
 Since 2010, Los Gatos’ population has increased, while not producing the amount of housing units to match the population growth. This lack of production has exacerbated an already tight housing market.

The lack of production is due to land costs, construction costs, availability of land, availability of financing, duration of permitting process, cost of permitting process, and environmental constraints.  To address this issue, the 6th cycle Housing Element includes Implementation Program B: “Large Site Program” and Implementation Program D: “Additional Housing Capacity”, along with other implementation programs, as a means to increase affordable housing production.  The housing that was added in Los Gatos between 2015 and 2019 was largely priced for above moderateincome households. Only 1.5 percent of housing permits approved were for low- or very-low-income housing. The lack of production of low- or very-low-income housing units is due to high land costs, high construction costs, limited availability of land, limited availability of financing, duration of permitting process, cost of permitting process, and lack of incentives.  Under the 6th cycle Housing Element, the Town will improve the Below Market Price (BMP) Program by conducting a study to evaluate the existing BMP Program and recommend changes to the program to increase the number of units constructed.

Fair Housing Issue
Los Gatos’ lack of affordable housing has a disproportionate impact on low- and moderate-income households who are more likely to be households of color. As such, Los Gatos lacks racial and ethnic diversity relative to the County overall. Racial/ethnic minority populations are also more likely to experience housing problems, such as cost burden and overcrowding, and have reduced access to opportunities, such as employment opportunities and better environmental conditions, compared to White populations.

Priority Level: Medium
Contributing factors:
 Black or African American and Hispanic residents typically work lower wage jobs, stemming from historical employment discrimination and lack of access to quality educational environments. These jobs do not support the Town’s very high housing costs.
 Low wage jobs are necessary to support higher wage industries. Los Gatos’ employment growth has not been adequately supported by affordable housing development. As such, there are twice as many low wage jobs as residents in Los Gatos who work those jobs.  To address these particular contributing factors, the 6th cycle Housing Element includes Implementation Program ATBI: “Affirmative Marketing” to work with affordable and market rate housing developers to ensure that affordable housing is affirmatively marketed to households with disproportionate housing needs, including Hispanic and Black households who work in and live outside of Los Gatos (e.g., materials in Spanish and English, distributed through employers). The Town will notify a broad representation of the community to solicit ideas for housing strategies when they are discussed at Planning Commission or Town Council meetings.  Los Gatos lacks proper outreach efforts for housing programs, services, and fair housing laws and regulations. Los Gatos is a high opportunity area with large White, owner, and moderate/above moderateincome household populations. Increasing outreach to communities outside of the Town about housing opportunities in Los Gatos may promote mixed income communities.

HCD Revised Draft 2023-2031 Housing Element
A-18 Appendix A JanuaryNovemberSeptember March 20232024  The Town will participate in housing outreach outside of the Town boundaries to the greatest extent possible. Outreach activities are further detailed in Section 10.6, Implementation Programs of this Housing Element.

Fair Housing Issue
Los Gatos’ households are segregated by income, and income segregation is higher in the Town than in other Bay Area jurisdictions. Further, most of the Town is considered an RCAA, with nonHispanic White and higher income household majority populations. While the Town has median incomes comparable to neighboring jurisdictions, the proportion of non-Hispanic White residents in Los Gatos is higher than the countywide trend. The Town may lack sufficient housing opportunities suitable for lower income households and outreach about such opportunities for protected groups including communities of color.

Priority Level: MediumHigh
Contributing factors:
 Lack of affordable housing overall is due to the high percentage of above moderate rate single-family housing stock in Town.
 The Town will address this issue by allocating a percentage of the Town Affordable Housing (Below Market Price) Fund to subsidize housing for extremely low-income households as identified in Implementation Program NP.
 Segregation of the limited affordable housing in Town is predominately located in the central portion of Town due to a limited area of where multi-family dwelling units are permitted.  The Town will use “Affirmative Marketing” strategies, as described in Implementation Program AT BI, to work with affordable and market rate housing developers to ensure that affordable housing is affirmatively marketed to households with disproportionate housing needs, including Hispanic and Black households who work in and live outside of Los Gatos (e.g., materials in Spanish and English, distributed through employers). The Town will also amend its Zoning Ordinance in order to increase the development of affordable housing.
 Opportunities, including employment, environmental, economic, and housing may not be accessible to all residents, especially those in vulnerable populations.
 In addition to Program AT described above, Los Gatos will implement programs to facilitate the development of affordable housing, including special needs housing, to increase housing opportunities in the Town (Programs D, E, L, N, O, W). The Town will also serve vulnerable populations through Senior Housing Resources (Program I), Housing Opportunities for the Homeless (Program U), Assistance for Persons with Developmental Challenges (Program V), and Supportive Services for the Homeless (Program Y). The Town also aims to increase transportation opportunities for new households through Program AF, Transit Oriented Development.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-19
Fair Housing Issue
Los Gatos feeds to high performing schools, yet, except for Asian students, students of color cannot take advantage of these learning opportunities because they cannot afford to live in Los Gatos.

Priority Level: Low
Contributing factors:
 Lack of affordable housing overall due to high land costs, high construction costs, limited availability of land, limited availability of financing, duration of permitting process, cost of permitting process, and lack of incentives.
 The Town will address this issue by allocating a percentage of the Town’s Affordable Housing (Below Market Program) Fund to subsidize housing for extremely low-income households and by including housing development sites on the Sites Inventory in all areas of Town.

Other Contributing Factors
Historic Land Use Practices
The Town was incorporated in 1887, has an approximate population of 30,000 and is 11.5 square miles. The Town originally developed at a distance from other population centers and therefore evolved as an independent community having residential, commercial, and industrial areas. The economics of the Town have changed from the wheat farming, milling, logging, orchard, and cannery businesses in the 19th and early 20th centuries to the suburban, high tech, and visitor destination businesses of today. The rapid increase in home values over the past decades have resulted in some of the most expensive property values in the country.

Opposition to Housing Development
A portion of the Town’s identity is maintaining its small-town character and feel. This can manifest itself in opposition to development of higher density housing or a variety of housing types other than from single family housing. The most common responses from the Renter’s Survey for enhancing housing opportunities in Los Gatos was the creation of a variety of housing types for all income levels Town-wide and through mixed-use development (refer to Section B.6 of Appendix B). Historic and contemporary attitudes of opposition to new housing development may have made it difficult to develop more dense housing projects in the past.

Implementation Program AN proposes to provide education on the problems and needs of affordable housing as a means of changing negative attitudes towards the provision of affordable housing.

Local Knowledge and Other Relevant Factors
Housing opportunities in the Town are limited by pricing and both rental and home values. While the population of the Town has increased, the required number of housing units to match the population growth, as well as new affordable housing has not. Based on Town knowledge and working with service providers, the lack of production of affordable housing units is due to high land costs, high construction costs, limited availability of land, limited availability of financing, duration of permitting process, cost of permitting process, a high percentage of above moderate rate single-family housing stock in Town, and the overall lack of incentives available to affordable housing developers. This was also acknowledged when the Town Council discussed the Town’s 2022 through 2024 strategic priorities on January 24, 2023, and included affordable housing partnerships as a strategic priority for the Town. Additionally, based on Town knowledge and working with service providers, the Town’s outreach efforts for housing programs, services, and fair housing laws and regulations can be improved through implementation of the 6th cycle Housing Element to increase outreach to communities outside of the Town about future housing opportunities in Los Gatos.

HCD Revised Draft 2023-2031 Housing Element
A-20 Appendix A JanuaryNovemberSeptember March 20232024 A.67 Fair Housing Enforcement and Outreach Capacity
This section discusses fair housing legal cases and inquiries, fair housing protections and enforcement, and outreach capacity. Figure A-8 provides a summary of fair housing complaints and inquiries in Los Gatos and the County.

Nationally, the National Fair Housing Alliance (NFHA) reported a “negligible” decrease in the number of complaints filed between 2019 and 2020. The primary bases for complaints nationally of disability (55 percent) were represented in Santa Clara County at a much lower rate (16 percent). Familial status represented eight percent of complaints nationally, similar to the six percent of cases in the County. Figure A-11 and Figure A-12 show the share of population by disability status within Santa Clara County and the distribution by census tract, respectively.

NFHA identifies three significant trends in 2020 that are relevant for this AFFH:
 First, fair lending cases referred to the Department of Justice from Federal banking regulators has been declining, indicating that State and local government entities may want to play a larger role in examining fair lending barriers to homeownership.
 Second, NFHA identified a significant increase in the number of complaints of harassment - 1,071 complaints in 2020 compared to 761 in 2019.
 Finally, NFHA found that 73 percent of all fair housing complaints in 2020 were processed by private fair housing organizations, rather than State, local, and Federal government agencies, reinforcing the need for local, active fair housing organizations and increased funding for such organizations9. 9 https://nationalfairhousing.org/2021/07/29/annual-fair-housing-report-shows-increase-in-housing-harassment/

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-21
Figure A-8 Fair Housing Complaints and Inquiries in Los Gatos and Santa Clara County Source: Root Policy Research
Outreach and capacity. Santa Clara County, including Los Gatos, has a number of organizations dedicated to assisting residents with legal services related to housing discrimination and general housing disputes. These organizations are listed in Figure I-1 of the map and data appendix.

The Town also maintains a resource guide that highlights service providers across multiple categories focused on housing and quality of life for underserved members of the community10. Additionally, the Town provides links and email addresses for citizens to participate in the ongoing Housing Element Update process, including links to the agendas and staff reports for the Housing Element Advisory Board (HEAB) in-person meetings.

Finally, the Town has a strong statement about inclusivity and directly addresses hate speech on its website11.

Compliance with State law. Los Gatos is compliant with the following State laws that promote fair and affordable housing. The Town has not been alleged or found in violation of the following:
10 Los-Gatos-Housing-Resources-Guide (losgatosca.gov)
11 https://www.losgatosca.gov/2604/Becoming-an-Inclusive-Community

HCD Revised Draft 2023-2031 Housing Element
A-22 Appendix A JanuaryNovemberSeptember March 20232024  Housing Accountability Act (Gov. Code. Section 65589.5) requiring adoption of a Housing Element and compliance with RHNA allocations;
 No Net Loss Law (Gov. Code Section 65863) requiring that adequate sites be maintained to accommodate unmet RHNA allocations;
 Least Cost Zoning Law (Gov. Code. Section 65913.1);
 Excessive Subdivision Standards Law (Gov. Code. Section 65913.2); and  Limits on Growth Controls Law (Gov. Code. Section 65589.5).

Housing specific policies enacted locally:
 Los Gatos offers a density bonus program to comply with State law; It also has an affordable housing overlay zone; however, that zone applies to one property only;  The Town allows relative diverse type of housing in residential zones. However, minimum lot area for duplexes is quite generous (8,000 square feet). The Town could add flexibility for affordable duplexes, particularly in areas near and within downtown;
 The Town requires that development of Accessory Dwelling Units under Town incentive programs be affordable, and deed restricted to 80 percent AMI households; and  The Town’s Below Market Price program requirements apply to developments of five units and more and require between 10 percent and 20 percent of units to be affordable to low- and moderate-income households. In-lieu fees are only allowed in limited circumstances, which prioritizes unit development.

Fair housing legal cases and inquiries. California fair housing law extends beyond the protections in the Federal Fair Housing Act (FHA). In addition to FHA protected classes, race, color, ancestry/national origin, religion, disability, sex, and familial status. California law offers protections for age, sexual orientation, gender identity or expression, genetic information, marital status, military or veteran status, and source of income (including Federal housing assistance vouchers).

The California Department of Fair Employment in Housing (DFEH) was established in 1980 and is now the largest civil rights agency in the United States. According to their website, DFEH’s mission is, “to protect the people of California from unlawful discrimination in employment, housing and public accommodations (businesses) and from hate violence and human trafficking in accordance with the Fair Employment and Housing Act (FEHA), Unruh Civil Rights Act, Disabled Persons Act, and Ralph Civil Rights Act”12.

DFEH receives, evaluates, and investigates fair housing complaints. DFEH plays a particularly significant role in investigating fair housing complaints against protected classes that are not included in Federal legislation and, therefore, not investigated by HUD. DFEH’s website provides detailed instructions for filing a complaint, the complaint process, appealing a decision, and other frequently asked questions13. Fair housing complaints can also be submitted to HUD for investigation.

Additionally, Santa Clara County has a number of local resource and enforcement organizations:
 Project Sentinel: Assists with housing discrimination, mortgage foreclosures, rental issues, and more. 12 https://www.dfeh.ca.gov/aboutdfeh/
13 https://www.dfeh.ca.gov/complaintprocess/

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-23
 Housing and Economic Rights Advocates (HERA) provides legal and advocacy for vulnerable Californians facing discrimination and economic abuses.
 Bay Area Legal Aid engages in broad advocacy focused on helping low-income Bay Area residents lead stable lives, including housing stability.
 The Law Foundation of Silicon Valley provides legal advocacy for social change with a focus on finding stable homes for low-income residents.
 Senior Adults Legal Assistance is a law office dedicated to supporting elder residents obtain independent living.

From 2013 to 2021, 391 fair housing complaints in Santa Clara County were filed with the U.S. Department of Housing and Urban Development (HUD) or Fair Housing Advocates of Northern California (FHANC). Most of the county’s valid complaints cited disability status as the bias. Of these complaints, 69 percent were considered valid and proceeded to actionable responses. Los Gatos had eight total Fair Housing and Equal Opportunity (FHEO) complaints and less than 0.5 FHEO inquiries.
and Figure A-9 illustrates the inquiries by city, with Los Gatos at less than 0.5. Figure A-10 illustrates FHEO Cases of Disability Bias in the County in 2020 and shows that Los Gatos and the region experienced 40-65 percent disability bias in FHEO cases in 2020. Compared to receiving less than 25 percent FHEO complaints between 2013-2021, this may be indicative of a recent rise in a lack of accessible housing in the local housing market.

Figures A-9 and A-10 show the number of FHEO complaints in Los Gatos and the region overall. Key differences between county and regional trends are summarized below.  According to HUD, between 2013 and 2022, there were less than one FHEO inquiry in Los Gatos similar to surrounding cities including Saratoga, Cupertino, and Campbell.  For the region, FHEO inquiries are largely concentrated near San Francisco, Concord, Santa Cruz, and Fairfield, all of which show up to five FHEO inquiries.  The largest number of inquiries were located near Fairfield and Antioch with five to ten FHEO inquiries.

HCD Revised Draft 2023-2031 Housing Element
A-24 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-9. FHEO Inquiries by City, Los Gatos, 2022
Source: California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-25
Figure A-10. FHEO Inquiries, Bay Area Region, 2022
Source: California Department of Housing and Community Development AFFH Data Viewer.

Figures A-11 and A-12 show FHEO cases in Los Gatos and the Bay Area. Trends in Los Gatos are similar to the region overall though Watsonville had a comparatively larger number of FHEO cases at more than 20 cases between 2013 and 2022.

HCD Revised Draft 2023-2031 Housing Element
A-26 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-11. FHEO Cases by City, Los Gatos, 2022
Source: California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-27
Figure A-12. FHEO Cases, Bay Area Region, 2022
Source: California Department of Housing and Community Development AFFH Data Viewer.

HCD Revised Draft 2023-2031 Housing Element
A-28 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-13 illustrates FHEO Cases of Disability Bias in Los Gatos and surrounding cities in 2020. As shown in the figure, Los Gatos and Santa Clara County experienced 40 percent to 65 percent disability bias in FHEO cases during this time. This compares to less than 25 percent of FHEO complaints between 2013-2021, which may be indicative of a recent rise in a lack of accessible housing in the local housing market.

Figure A-13. FHEO Cases – Disability Bias by County, Los Gatos, 2020 Source: California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-29
A.7 Existing Affordable Housing Assets
Publicly Assisted Housing. According to the California Department of Housing and Community Development AFFH Data Viewer (HCD data viewer), Los Gatos does not have any public housing buildings (Figure A-13).

There is a significant lack of subsidized housing units in Los Gatos and neighboring communities including Saratoga and Cupertino. have a significant lack of subsidized housing units. Subsidized units are concentrated north and east of Los Gatos as well as San Jose (Figure A-14). shows more subsidized housing present North and East of Los Gatos in San Jose area.

Figure A-14 Subsidized Housing, Los Gatos and the Region, (CHPC, 2023) Source: California Department of Housing and Community Development AFFH Data Viewer

HCD Revised Draft 2023-2031 Housing Element
A-30 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-15 shows the distribution of public housing in Los Gatos and surrounding communities of which there are zero public housing buildings.

Figure A-15 Public Housing Buildings, Los Gatos, 2021
Source: California Department of Housing and Community Development AFFH Data Viewer Additionally, only a Very few residents in Los Gatos are voucher holders. The only census tract with available data show less than small portion of Los Gatos contains any Housing Choice Voucher usage, a minimal zero to five percent of residents having a housing voucher (Figure A-YY16). These patterns could be related to the Town’s smaller population of low-income residents who need and quality for vouchers and or voucher discrimination. Patterns of voucher discrimination correlate with the number of FHEO cases and inquiries for disability bias in Los Gatos.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-31
Figure A-16 Housing Choice Vouchers by Census Tract, Los Gatos, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer Los Gatos, along with Saratoga, Cupertino, Sunnyvale, and Campbell have no emergency shelter housing available (Figure A-17). There are a few emergency shelters in San Jose and Santa Clara, but the region is generally limited in emergency shelter housing overall.

HCD Revised Draft 2023-2031 Housing Element
A-32 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-17 Emergency Shelter Housing, Los Gatos, (HUD, 2021) Source: California Department of Housing and Community Development AFFH Data Viewer The entire region around Los Gatos has Figure A-18 shows HUD’s Housing Inventory Count (HIC) for Los Gatos and surrounding areas. In 2021, Los Gatos and neighboring areas had up to 2,500 beds for special

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-33
needs populations, persons experiencing homelessness, and or persons at-risk of homelessness. This is promising for Los Gatos given the high cost of housing across Los Gatos and the Bay Area.

Figure A-18 Housing Inventory Count, Los Gatos and Santa Clara County, (HUD, 2021) Source: California Department of Housing and Community Development AFFH Data Viewer

HCD Revised Draft 2023-2031 Housing Element
A-34 Appendix A JanuaryNovemberSeptember March 20232024 A.78 Integration and Segregation
This section discusses integration and segregation of the population by protected classes including race and ethnicity, disability status, familial status, and income status. The section concludes with an analysis of racially and ethnically concentrated areas of poverty and affluence. Figure A-15 19 provides a summary of segregation and integration in Los Gatos and the County.

Integration and Segregation
“Integration generally means a condition in which there is not a high concentration of persons of a particular race, color, religion, sex, familial status, national origin, or having a disability or a particular type of disability when compared to a broader geographic area.

Segregation generally means a condition in which there is a high concentration of persons of a particular race, color, religion, sex, familial status, national origin, or having a disability or a type of disability in a particular geographic area when compared to a broader geographic area.” Figure A-1519 Segregation and Integration, Los Gatos and Santa Clara County Source: Root Policy Research
Town

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-35
Race and Eethnicity.

Los Gatos differs from the county and Bay Area overall for its relatively high proportion of residents identifying as non-Hispanic White (72 percent in Los Gatos compared to 32 percent in Santa Clara County) and small Hispanic population (eight percent in Los Gatos and 25 percent in the county) (Figure A-2016).  Los Gatos’ proportion of Black/African American and Other and mixed-race residents is less proportional to the County and the Bay Area overall (Figure A-2016).
 Los Gatos’ residents have grown more racially diverse since 2000 largely due to growth in Asian and Hispanic residents (Figure B-4).
 Older residents are less racially diverse than other age groups, with 87 percent of the population older than 65 years identifying as White compared to 77 percent of those aged 18 to 24 and 75 percent of children less than 18 years old. The main shift is the inclusion of more diverse populations in younger age groups, especially among Asian/API and Other/Multiple race residents (Figure B-3).  Poverty rates are very low for all residents including residents of color. Black/African American have the lowest poverty rate at less than 1 percent. The highest poverty rate was 6.1 percent among Hispanic residents (Figure B-13).

Figure A-1620 Population by Race in the Region
Source: ABAG Housing Needs Data Workbook
Table A-1 shows racial/ethnic composition trends in the County and Los Gatos over the last decade. According to the 2017-2021 ACS, the White population represents 29.9 percent of the population in the County and 70.1 percent of the population in Los Gatos. In both the County and Town, the White population has decreased since the 2006-2010 ACS. During the 2006-2010 ACS, 36.6 percent of the population countywide and 80.9 percent of the population in the Town were White. In Los Gatos, the Asian population and population of a race not listed (“some other race”) saw the largest increases during this period. The population of two or more races and Hispanic Latino population also grew between 2010 and 2021. 15%
37%
27%
6%
72% 32% 39%
4%
4% 5%
8%
25% 24%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%
100.0%
Los Gatos Santa Clara
County
Bay Area Percent of Population
Hispanic or Latinx
Other Race or Multiple
Races, Non-Hispanic
White, Non-Hispanic
Black or African
American, Non-Hispanic
Asian / API, Non-Hispanic
American Indian or Alaska
Native, Non-Hispanic

HCD Revised Draft 2023-2031 Housing Element
A-36 Appendix A JanuaryNovemberSeptember March 20232024 Compared to neighboring jurisdictions, Los Gatos has a racial/ethnic minority population similar to Monte Sereno (29.8 percent), but significantly smaller than most cities including Campbell (51.7 percent), Cupertino (77.5 percent), San Jose (75.6 percent), Santa Clara (69.8 percent), and Saratoga (61 percent).

Table A-1. Change in Racial/Ethnic Composition – Santa Clara County and Los Gatos (2010-2021) Race/Ethnicity
Santa Clara County Los Gatos
2010 2021 % Change 2010 2021 % Change
White alone 36.6% 29.9% -9.3% 80.9% 70.1% 0.0%
Black or African American alone 2.4% 2.3% 7.8% 1.6% 0.8% -41.9% American Indian and Alaska Native alone 0.3% 0.2% -33.6% 0.0% 0.0% -- Asian alone 31.2% 37.9% 35.0% 9.5% 16.6% 101.6%
Native Hawaiian and Other Pacific Islander
alone

0.3% 0.3% 1.2% 0.1% 0.0% -100.0%
Some other race alone 0.4% 0.4% 15.3% 0.1% 0.4% 207.5%
Two or more races 2.6% 3.9% 67.1% 2.5% 3.9% 81.3%
Hispanic or Latino 26.2% 25.1% 6.3% 5.3% 8.3% 79.3%
Total 1,739,396 1,932,022 11.1% 28,878 33,309 15.3%
Source: 2006-2010 and 2017-2021 ACS 5-Year Estimates).

Geospatially, almost all census tracts in Los Gatos have a predominantly White population. (Figure A-2 above).

Figures A-21 and A-22 show the predominant population by census tract in Los Gatos and the Bay Area region for 2021. Los Gatos is predominantly White and comparatively less diverse than Santa Clara County and the Bay Area. Key regional differences include the following:
 Communities in Saratoga, Cupertino, and San Jose are more diverse with larger populations of Asian and Hispanic or Latino residents.
 Hispanic or Latino residents are largely concentrated in East Palo Alto, Redwood City, and San Jose census tracts. These concentrations could be influenced by a range of factors particularly discriminatory redlining practices and affordability challenges.
 Very few census tracts in the region show Black or African American residents as the predominant population. These tracts are located north of South San Francisco and around Sa Leandro.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-37
Figure A-21. Predominant Population by Census Tract, Los Gatos, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

HCD Revised Draft 2023-2031 Housing Element
A-38 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-22. Predominant Populations in the Region by Census Tract, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-39
Compared with neighboring Monte Sereno, Los Gatos has a more varied neighborhood composition map and a more even dispersion of residents of varied races and ethnicities, see Figure A-5 above. Overall, the Town has low to moderate diversity (Figure A-6 and Figure A-7 above).

The Town’s diversity index has improved since 2010 due to changes in racial and ethnic diversity in the northern and eastern portions of Town, but constraints on development in the form of zoning restrictions and discretionary permit reviews have slowed this progress. The Association of Bay Area Governments (ABAG), working with UC Merced, created a 2021 report on segregation in Los Gatos that measured racial and income segregation within the community. This report, in its entirety, can be found in Appendix G. That report utilized several common measures of segregation:
 The Dissimilarity Index, or DI, is a common tool that measures segregation in a community. DI is an index that measures the degree to which two distinct groups are evenly distributed across a geographic area. DI represents the percentage of a group’s population that would have to move for each area in the county to have the same percentage of that group as the county overall. DI values range from zero to 100, where zero is perfect integration and 100 is complete segregation. Dissimilarity index values between zero and 39 generally indicate low segregation, values between 40 and 54 generally indicate moderate segregation, and values between 55 and 100 generally indicate a high level of segregation.  The isolation index is interpreted as the probability that a randomly drawn minority resident shares an area with a member of the same minority, it ranges from zero to 100 and higher values of isolation tend to indicate higher levels of segregation.

ABAG’s assessed measures of segregation above highlighted White residents as the most segregated in Los Gatos. White residents are more likely than any other racial group to live in a neighborhood where they are unlikely to come into contact with other racial groups. However, White residents are becoming less isolated over time, and segregation in Los Gatos is decreasing.

Figure A-22 shows the diversity index by block group for Los Gatos in 2010. During this time, Los Gatos had a low diversity score with few census tracts assigned indexes of 40 to 55. Campbell is far more diverse than Los Gatos with census tracts showing higher diversity indexes.

HCD Revised Draft 2023-2031 Housing Element
A-40 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-22 Diversity Index by Block Group, Los Gatos, 2010 Source: California Department of Housing and Community Development AFFH Data Viewer.

Figure A-23 shows diversity index by block group for Los Gatos in 2018. Diversity in Los Gatos has remained low; however, census tracts with higher diversity indexes in 2010 shifted to the eastern edge of the town by 2018.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-41
Figure A-23. Diversity Index by Block Group, Los Gatos, 2018 Source: California Department of Housing and Community Development AFFH Data Viewer.

Compared with neighboring Monte Sereno, Los Gatos has a more varied neighborhood composition map and a more even dispersion of residents of varied races and ethnicities. Figure A-24 shows neighborhood segregation by census tract in Los Gatos in 2019. The majority of census tracts in the town are Asian-White though census tracts located in the western portions of Los Gatos have neighborhoods with White segregation. This is

HCD Revised Draft 2023-2031 Housing Element
A-42 Appendix A JanuaryNovemberSeptember March 20232024 substantially different from segregation in Campbell’s neighborhoods which show most neighborhoods as segregated by three racial/ethnic groups.

Figure A-24. Neighborhood Segregation by Census Tract, Los Gatos, 2019 Source: California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-43
Segregation by income increased between 2010 and 2015. In 2015, the income segregation in Los Gatos between lower-income residents and other residents was higher than the average value for Bay Area jurisdictions.

Disability sStatus.

The share of the population living with at least one disability is nine percent in Los Gatos compared to eight percent in Santa Clara County (Figure A-1125). Roughly a third of census tracts in Los Gatos contain 10 percent to 20 percent of persons with a disability, higher than most of the surrounding jurisdictions. (Figure A-9 above).

Figure A-25. Share of Population by Disability Status, Los Gatos and the Region, 2019 Source: ABAG Housing Needs Data Workbook.

According to the 2017-2021 ACS, in Santa Clara County, the American Indian and Alaska Native population has the highest disability rate (13.1 percent), followed by the Native Hawaiian and other Pacific Islander population (11.4 percent), Black/African American population (11.3 percent), and non-Hispanic White population (10.7 percent). During this period, approximately 8.2 percent of the population experiences a disability countywide. In Los Gatos, 7.8 percent of the population experiences a disability according to the 2017-2021 ACS. The nonHispanic White population has the highest disability rate (8.5 percent), followed by the Hispanic/Latino population (7.8 percent), and population of some other race (7.3 percent).

The change in populations of persons with disabilities between the 2008-2012 and 2017-2021 ACS is shown in Table A-2. The population experiencing a disability countywide increased from 7.7 percent during the 2012 ACS to 8.2 percent during the 2021 ACS. This can be attributed to the growing elderly population Statewide and in the County. During the 2008-2012 ACS, the population aged 65 and older represented 11.1 percent of the population compared to 13.6 percent during the 2017-2021 ACS. In comparison, the elderly population aged 65 and older currently represents 20.2 percent of the population in Los Gatos (2017-2021 ACS). During the 2008-2012 ACS, the Town had a similar population of elderly adults, representing 19 percent of the population. This is consistent with the Townwide trend of persons with disabilities shown in Table A-2.

HCD Revised Draft 2023-2031 Housing Element
A-44 Appendix A JanuaryNovemberSeptember March 20232024 Table A-2. Change in Populations of Persons with Disabilities – County and Los Gatos (2012-2021) Subpopulation
Santa Clara County Los Gatos
2012 2021 2012 2021
Age
Under 5 years 0.5% 0.5% 0.0% 0.0%
5 to 17 years 2.9% 3.5% 1.9% 1.8%
18 to 64 years 5.4% 5.4% 4.3% 3.5%
65 years and over 33.7% 30.7% 27.9% 27.9%
Type
With a hearing difficulty 3.7% 2.3% 2.8% 2.8%
With a vision difficulty 3.9% 1.4% 3.0% 0.7%
With a cognitive difficulty 4.2% 3.3% 2.9% 3.1%
With an ambulatory difficulty 4.3% 4.3% 3.0% 4.6%
With a self-care difficulty 4.2% 2.0% 3.0% 2.3%
With an independent living difficulty 4.2% 4.5% 3.2% 4.9% Total Population 7.7% 8.2% 7.9% 7.8%
Source: 2008-2012 and 2017-2021 ACS (5-Year Estimates).

Note: 2010 5-Year Estimates are not available for disability status; therefore, this dataset utilized the 2008-2012 dataset.

Figures A-26 and A-27 illustrate the distribution of disabled persons in Los Gatos and the region overall. The Los Gatos community has a very small percentage of residents living with disabilities at less than 10 percent meaning there are no concentrations of disability in the town. Regional trends compared to Los Gatos are summarized below.
 San Francisco has the largest concentration of disabled persons at more than 40 percent;  Saratoga follows similar trends as Los Gatos, only one census tract in the town shows disabled residents as comprising 10 percent to 20 percent of the total population; and  Surrounding cities have disabled residents ranging from less than ten percent to 20 percent of the total population though San Jose has one tract where residents with a disability comprise 20 percent to 30 percent of the total population.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-45
Figure A-26. Population with a Disability by Census Tract, Los Gatos, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

HCD Revised Draft 2023-2031 Housing Element
A-46 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-27. Population with a Disability by Census Tract, Bay Area Region, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-47
Familial Sstatus
. Familial status can indicate specific housing needs and preferences. A larger number of non-family or single person households indicates a higher share of seniors living alone, young adults living alone or with roommates, and unmarried partners. Higher shares of nonfamily households indicate an increased need for one- and twobedroom units.

Los Gatos’ households are as likely to be three to four person households (34 percent) as two person households (35 percent). Compared to the county and Bay Area overall, Los Gatos mirrors the share of one person households (26 percent compared to 20 percent in the county and 25 percent for the Bay Area). Married couple households were the majority household type (58 percent) and 31 percent of all households have at least one child under the age of 18. The share of single persons and female-headed households mirror the makeup in the Bay Area. The Town has no concentrations of adults living alone, suggesting that access to in-home services and care for single, older adults is less critical for Los Gatos than some surrounding communities within the county. However, the Town’s age distribution has shifted upwards since 2000 (Appendix B, Figure B-2) and these accommodations may grow in demand if older adults, 55 and older, in Los Gatos age in place.

Los Gatos’ married couples overwhelmingly own housing: seventy-seven percent of married couple families in the Town own their homes. Renters are more likely to occupy studios and one- and two-bedroom units than owners (Appendix B, Figure B-36), and owners are more likely to be occupying three to four- and 5 or more-bedroom units. Owners and renters are equally as likely to live alone.

Trends in housing types in the County and Los Gatos are presented in Table A-3. Data differs slightly between the 2006-2010 and 2017-2021 ACS. For example, the 2006-2010 ACS does not include cohabiting couple households like the 2017-2021 ACS. However, these datasets can still be used to show the general trend over time. The proportion of married couple households in both the County and Town have increased during this period. The proportion of married couple households with children in Los Gatos has also increased while the proportion countywide has decreased. Populations of single-parent households, both male-headed and femaleheaded, have decreased in the County and Town. The County and Town have also seen increases in households with one or more people aged 65 and over during this period.

Table A-3. Change in Household Type – County and Los Gatos (2010-2021) Household Type
Santa Clara County Los Gatos
2010 2021 2010 2021
Married-couple household 54.9% 56.1% 55.7% 61.6%
With children of the householder under 18 years 27.9% 26.3% 24.3% 27.8% Cohabiting couple household -- 5.8% -- 3.9%
With children of the householder under 18 years -- 1.7% -- 1.3% Male householder, no spouse/partner present 5.3% 17.0% 3.1% 12.8% With children of the householder under 18 years 2.2% 1.1% 1.3% 0.6% Householder living alone -- 10.1% -- 10.1%
Female householder, no spouse/partner present 10.4% 21.1% 6.6% 21.7% With children of the householder under 18 years 5.3% 3.2% 4.8% 1.5% Householder living alone -- 10.6% -- 15.0%
Nonfamily households 29.4% -- 34.6% --
Householder living alone 23.0% -- 30.1% --
Households with one or more people under 18 years 38.4% 35.2% 31.0% 32.5% Households with one or more people 65 years and over 21.7% 27.2% 28.5% 35.2% Total households 596,747 646,847 12,064 13,036
Source: 2006-2010 and 2017-2021 ACS (5-Year Estimates).

HCD Revised Draft 2023-2031 Housing Element
A-48 Appendix A JanuaryNovemberSeptember March 20232024 Understanding household composition is critical for Los Gatos’ planning efforts as households with children often have unique needs compared to households without children. Figures A-28 and A-29 illustrate the distribution of households by the number of children in married couple households in Los Gatos and across the region. Primary findings presented in the figures include:
 80-100 percent of Almost all children in Los Gatos live in married couple households, similar to Saratoga and Cupertino.
 Campbell and San Jose follow different trends than Los Gatos with census tracts showing only 20 percent to 60 percent of children living in married couple households.  Regional trends are similar to that in Los Gatos and Santa Clara County though Redwood City has a lower percentage of children in these households.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-49
Figure A-28. Children in Married Couple Households by Census Tract, Los Gatos, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

HCD Revised Draft 2023-2031 Housing Element
A-50 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-29. Children in Married Couple Households, Bay Area Region, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-51
Figures A-30 and A-31 show the percent of children living with a female householder and no spouse in Los Gatos and the region. Less than 20 percent of children in Los Gatos live in a household with a female householder in line with Saratoga and Cupertino. Regional differences are summarized below.  San Jose has a comparatively larger number of children living in households with a female householder compared to surrounding communities though there is one census tract in Campbell where 60 percent to 80 percent of children are living in households with a female householder and no spouse.  For the region overall, female householders with children are largely concentrated around San Francisco, San Mateo, Redwood City, San Leandro, and Hayward.
 Concentrations in San Mateo and Redwood City could be related to comparatively lower housing prices as households with one earner are more likely to have lower incomes.

HCD Revised Draft 2023-2031 Housing Element
A-52 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-30. Children in Female Householder Households by Census Tract, Los Gatos, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-53
Figure A-31. Children in Female Householder Households by Census Tract, Bay Area Region, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

HCD Revised Draft 2023-2031 Housing Element
A-54 Appendix A JanuaryNovemberSeptember March 20232024 Figures A-32 and A-33 show the percentage of residents living with their spouse in Los Gatos and the region.

Primary findings presented in the figures include:
 More than 60 percent of the population in Los Gatos lives with a spouse. Only one census tract in the town shows 40 percent to 60 percent of the population living with a spouse. Comparatively larger households with married couples is likely related to the large number of households in Los Gatos with incomes above $175,000.
 Trends in Los Gatos are similar in Cupertino and Saratoga, though Saratoga does not have any census tracts with less than 60 percent of the population living with a spouse.  For the region overall, there is more diversity in household types, specifically in San Jose where several census tracts show less than 20 percent of the population living with a spouse.  The greatest regional concentration of these households are located near Sunnyvale and Livermore with 80 percent to 100 percent of residents living with a spouse.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-55
Figure A-32. Percent of Population Living with Spouse by Census Tract, Los Gatos, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

HCD Revised Draft 2023-2031 Housing Element
A-56 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-33. Population Living with Spouse, Bay Area Region, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-57
Figures A-34 and A-35 present the distribution of residents living alone in Los Gatos and the region. Very few residents live alone in Los Gatos: the majority of the town shows less than 20 percent of residents living alone though there is one census tract were 20 percent to 40 percent of the population live alone. Primary findings from the county and regional analysis are summarized below.
 Saratoga and Cupertino are in line with Los Gatos though both cities have a lower percentage of residents living alone at less than 20 percent. San Jose has a comparatively larger population living alone though it is still less than half of residents.
 The distribution of residents living alone in Los Gatos is similar to the region overall, excluding cities near the Bay. In San Francisco, residents are more likely to live alone with one census tract showing almost all residents living alone.
 The difference between Los Gatos and San Francisco is likely the result of San Francisco’s larger supply of housing units that are not single-family detached homes as well as living costs. In other words, residents living alone are more likely to be able to afford a unit in the Bay Area than in Los Gatos and surrounding communities.

HCD Revised Draft 2023-2031 Housing Element
A-58 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-34. Percent of Population Living Alone by Census Tract, Los Gatos, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-59
Figure A-35. Percent of Population Living Alone in the Region, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

HCD Revised Draft 2023-2031 Housing Element
A-60 Appendix A JanuaryNovemberSeptember March 20232024 Household Iincome
. Los Gatos’ households are higher-income than the county and Bay Area overall: 65 percent of Los Gatos households earn more than 100 percent of the AMI, compared to 55 percent for the county and 52 percent for the Bay Area (Appendix B, Figure B-11). Every block group in Los Gatos with available data has a median household income of $125,000 or more (Figure A-17). In the Town, Hispanic or Latinx and Other Race or Multiple Races (Hispanic and Non-Hispanic) residents experience the highest rates of poverty, followed by White (Hispanic and Non-Hispanic) residents (Figure B-13).

Figures A-376 and A-387 show the distribution of households by median household income for 2021 in Los Gatos and the region overall. As shown in the figure below, the majority of Los Gatos households have incomes above $175,000. Households with incomes between $125,000 and $175,000 are concentrated in the town’s inner census tracts which could suggest patterns of income segregation. This could be related to lower housing prices in these areas. According to the 2017-2021 ACS, the median household income in Los Gatos is $166,642, compared to $140,258 in the County. The median household income in the Town is higher than the neighboring cities of Campbell ($130,171), San Jose ($125,075), and Santa Clara ($150,244), but lower than Cupertino ($199,778) Monte Sereno ($250,000+), and Saratoga ($224,179). Half or more than half of households in Cupertino, Monte Sereno, and Saratoga earn more than $200,000 compared to 42.9 percent in Los Gatos. The change median household incomes since 2010 for the County, Town, and neighboring cities is shown in Figure A36.

Figure A-36. Change in Median Household Income – County, Los Gatos, and Neighboring Cities (2010-2021)
Source: 2006-2010 through 2017-2021 ACS (5-Year Estimates).

Note: The median household income in Monte Sereno for 2017 through 2021 is recorded as “$250,000+” in the ACS datasets.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-61
Primary findings from the comparative analysis are summarized below.  Income distribution in Los Gatos is similar to Cupertino though more diverse than Saratoga which does not have a concentration of households with median incomes below $175,000. This is particularly important for these cities as many households may need to leave the area for more affordable housing options, especially as housing prices continue to increase.
 San Jose is the only city in the region to have income diverse households. Census tracts in San Jose have households with median incomes at less than $55,000 with other tracts ranging from $55,000 to $120,000.

HCD Revised Draft 2023-2031 Housing Element
A-62 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-376. Median Income by Census Tract, Los Gatos, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-63
Figure A-387. Regional Median Income by Census Tract, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

HCD Revised Draft 2023-2031 Housing Element
A-64 Appendix A JanuaryNovemberSeptember March 20232024 The population of persons living below the poverty line is relatively low in Santa Clara County. According to the 2017-2021 ACS, only 6.7 percent of the County population is below the poverty level. Counties surrounding Santa Clara County, including Alameda County (8.9 percent), Merced County (19.4 percent), San Benito County (7.7 percent), Santa Cruz County (10.9 percent), and Stanislaus County (13.6 percent). San Mateo County has a poverty rate of only 6.2 percent.

Los Gatos has a smaller population below the poverty level, representing only 3.5 percent of the Town population. The Town has a lower poverty rate compared to the nearby jurisdictions of Campbell, Cupertino, San Jose, and Santa Clara, but higher than Monte Sereno and Saratoga.

The southern strip of Los Gatos houses a population in which 10 to 20 percent of the people are living in poverty. All of the immediate surrounding areas have less than 10 percent of the population living in poverty, with the percentages increasing slightly in North East in San Jose area, as shown in Figures A-38 and A-39.

Primary findings from the regional analysis are summarized below.  Poverty is concentrated in the southern portions of Los Gatos with 10 percent to 20 percent of the total resident population experiencing poverty. These patterns suggest that income segregation is occurring across Los Gatos.
 Stanford, East Palo Alto, Santa Clara, and San Jose have comparatively larger concentrations of residents living in poverty compared to the region overall.
 Saratoga, Campbell, and the majority of Cupertino do not have any poverty concentrations with less than ten percent of residents below the poverty level. This is expected given the large number of households with incomes above $175,000.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-65
Figure A-38. Poverty Status by Census Tract, Los Gatos, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.