Los Gatos City Council
January 16, 2024

HCD Revised Draft 2023-2031 Housing Element
A-66 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-39. Regional Poverty by Census Tract, 2021
Source: California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-67
Racially or Eethnically Cconcentrated Aareas of Ppoverty and Aaffluence.

Racially Concentrated Area of Poverty or an Ethnically Concentrated Area of Poverty (R/ECAP) and Racially Concentrated Areas of Affluence (RCAAs) represent opposing ends of the segregation spectrum from racially or ethnically segregated areas with high poverty rates to affluent predominantly White neighborhoods. Historically, HUD has paid particular attention to R/ECAPs as a focus of policy and obligations to AFFH. Recent research out of the University of Minnesota Humphrey School of Public Affairs argues for the inclusion of RCAAs to acknowledge current and past policies that created and perpetuate these areas of high opportunity and exclusion14.

It is important to note that R/ECAPs and RCAAs are not areas of focus because of racial and ethnic concentrations alone. This study recognizes that racial and ethnic clusters can be a part of fair housing choice if they occur in a non-discriminatory market. Rather, R/ECAPs are meant to identify areas where residents may have historically faced discrimination and continue to be challenged by limited economic opportunity, and conversely, RCAAs are meant to identify areas of particular advantage and exclusion.

R/ECAPs
HCD and HUD’s definition of a Racially/Ethnically Concentrated Area of Poverty is:
 A census tract that has a non-White population of 50 percent or more (majority-minority) or, for non-urban areas, 20 percent, AND a poverty rate of 40 percent or more; OR  A census tract that has a non-white population of 50 percent or more (majority-minority) AND the poverty rate is three times the average tract poverty rate for the County, whichever is lower.

Source: California Department of Housing and Community Development Guidance, 2021.

For this study, the poverty threshold used to qualify a tract as an R/ECAP was three times the average census tract poverty rate countywide, or 22.5 percent. Similar to many jurisdictions in Santa Clara County, there are no census tracts in Los Gatos that qualify as R/ECAPs. R/ECAPs in the County are all located in San Jose (Figure A-1840).
14 Goetz, E. G., Damiano, A., & Williams, R. A. (2019). Racially Concentrated Areas of Affluence: A Preliminary Investigation. Cityscape: A Journal of Policy Development and Research, 21(1), 99–124

HCD Revised Draft 2023-2031 Housing Element
A-68 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-1840 R/ECAPS, Santa Clara County
Source: California Department of Housing and Community Development AFFH Data Viewer

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-69
RCAAs. An RCAA is a census tract (1) with a percentage of its total White population that is 1.25 times higher than the average percentage of the COG region’s White population; and (2) has a median income that is 2 times higher than the COG Area Median Income (AMI). Generally, these are understood to be neighborhoods in which there are both high concentrations of non-Hispanic White households and high household income rates. As shown in Figure A-19, when comparing Los Gatos to the surrounding county and region, it is safe to speculate that the Town has more RCAAs than other communities, the county, and the region.

The majority of the Town is located within an RCAA with the exception of census tract 5067.03 located in the northern portion of the Town, north of Interstate Highway 85 and west of California State Route 17.

Figures A-41 and A-42 show RCAAs in Los Gatos and the region. Los Gatos a racially concentrated area of affluence (RCAA). Saratoga only has few census tracts identified as RCAAs similar to Southern San Jose and parts of Campbell. Cupertino, Santa Clara, and Sunnyvale have no areas with a high enough concentration of racial affluence to be identified as an RCAA. These trends are similar to the region overall which shows several census tracts as an RCAA.

As discussed above, Los Gatos has a median income comparable to many neighboring cities. The median household income in the Town is lower than Cupertino, Monte Sereno, and Saratoga. Despite having a lower median household income, Los Gatos has a higher concentration of RCAA tracts compared to Cupertino and Saratoga. This is likely due to the racial/ethnic minority populations in these cities. Also discussed above, Saratoga and Cupertino have non-White populations of 61 percent and 77.5 percent, respectively, compared to only 29.9 percent in Los Gatos. While the proportion of White residents has decreased in the Town and County over the last decade, Los Gatos still has a significantly higher population of White residents (72 percent) compared to the County (32 percent) and the Bay Area (39 percent). As discussed above, 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
As shown in Figure A-22 above, most Los Gatos and Campbell tracts have non-Hispanic White majority populations while Saratoga, Cupertino, and Sunnyvale have Asian majority populations. Despite being comprised of tracts with median incomes similar to these jurisdictions (Figure A-38), Los Gatos has more RCAAs. As mentioned above, this is likely due to the larger White populations in Los Gatos. However, concentrations of RCAAs in Los Gatos are similar to other jurisdictions west of the 101 Freeway, stretching from the west side of Gilroy to Pacifica. Jurisdictions along the 85 and 280 Highways, from Los Gatos to Burlingame (San Mateo County) are also comprised of mostly TCAC highest resource tract (Figure A-45).

All tracts in Los Gatos, except tract 5067.03 in the northeast corner of the Town, also encompassing part of the City of Campbell, are considered RCAAs. Tract 5067.03 is a high resource area. The remaining RCAA tracts in Los Gatos are described in detail in Table A-4. All RCAAs are also highest resource areas with majority nonHispanic White populations. All the RCAAs in the City also have median household incomes exceeding $150,000.

According to the HCD AFFH Data Viewer 2.0, there are three subsidized housing projects in Los Gatos. One has 49 affordable units and is located in tract 5068.01, which is considered an RCAA. The other affordable projects, Villa Vasona (105 affordable units for seniors/persons with disabilities) and Open Doors (64 affordable units), are in tract 5067.03, the only tract in Los Gatos that is not considered an RCAA. This tract, and the areas along State Route 17, have higher concentrations of areas zoned for multi-family housing. Nearly all of the areas in the central and eastern areas of the Town are zoned for single-family residential uses. The Town’s Zoning Map is presented in Figure A-43.

RCAAs are prevalent in Los Gatos due to the small racial/ethnic minority population and to limited affordable housing projects and multi-family zoned areas. However, programs outlined in this Housing Element promote fair housing through increased housing opportunities in these high resource RCAAs. Specifically, as described in Section 10.5, Goals, Policies, and Implementation Programs, the Town will facilitate the buildout of the North Forty Specific Plan and increase allowed density (Program D), subsidize housing for extremely low-income households (Program N), and provide incentives for affordable housing development (Program O). The Town will also implement affirmative marketing strategies for affordable housing opportunities in the Town.

HCD Revised Draft 2023-2031 Housing Element
A-70 Appendix A JanuaryNovemberSeptember March 20232024 Table A-4. Los Gatos RCAA Tracts and Other Fair Housing Factors RCAA Tract
TCAC Composite
Score
Median Household
Income
Predominant
Population
RCAA?
5068.01 Highest Resource $164,195 Non-Hispanic White Yes 5068.04 Highest Resource $172,222 Non-Hispanic White Yes 5069 Highest Resource $188,585 Non-Hispanic White Yes
5070.02 Highest Resource $250,001 Non-Hispanic White Yes 5070.03 Highest Resource $221,442 Non-Hispanic White Yes 5070.04 Highest Resource $168,015 Non-Hispanic White Yes 5071 Highest Resource $153,125 Non-Hispanic White Yes
5072.03 Highest Resource $179,006 Non-Hispanic White Yes 5072.05 Highest Resource $186,250 Non-Hispanic White Yes Source: California Department of Housing and Community Development AFFH Data Viewer 2.0.

This documents that Los Gatos is largely an area of affluence and does not have any areas of concentrated poverty. Much of the root causes associated with this demographic trend are related to the type of housing stock that is available in Los Gatos, which has typically consisted of single-family detached homes and lower density multi-family development. In order to address and remedy these root causes that have led to a historic pattern of exclusion, the Town’s 2023-2031 Housing Element sets forth concrete actions to address longstanding fair housing issues. The Town will created a new Housing Element Overlay Zone, allowing for increased development standards such as density, height, and floor area that will increase the diversity of housing types and increase affordable housing supply. In addition, the Town will implement multiple programs that will support affordable housing development, including modification to the Town’s Inclusionary Ordinance and amendment of the Accessory Dwelling Unit Ordinance and State Density Bonus Ordinance. The Town is implementing programs that will increase housing diversity in its single-family neighborhood areas, including promotion of ADUs and allowance for lot splits and duplexes in accordance with SB 9. Implementation Programs AO and AV are proposed to monitor units produced through SB 9. The SB 9 programs, along with the Sites Inventory seek to integrate affordable units into these concentrated areas of affluence.

Figures A-41 and A-42 show RCAAs in Los Gatos and the region. Los Gatos a racially concentrated area of affluence (RCAA). Saratoga only has few census tracts identified as a RCAAs similarly to Southern San Jose and parts of Campbell. Cupertino, Santa Clara, and Sunnyvale have no areas with a high enough concentration of racial affluence to be identified as an RCAA. These trends are similar to the region overall which shows several census tracts as an RCAA.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-71
Figure A-41 Racially Concentrated Areas of Affluence by Census Tract, Los Gatos, 2019 Source: California Department of Housing and Community Development AFFH Data Viewer

HCD Revised Draft 2023-2031 Housing Element
A-72 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-42. Regional RCAAs, 2019
Source: California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovember September March 20232024 Appendix A A-73 Figure A-43. Town of Los Gatos Zoning Map

Appendix A. AFFH Report
JanuaryNovember September March 20232024 Appendix A A-74 A.89 Access to Opportunity
This section discusses disparities in access to opportunity among protected classes including access to quality education, employment, and environment. Figure A-20 43 provides a summary of access to opportunity demographics in Los Gatos and the County.

Figure A-43. Access to Opportunity in Los Gatos and Santa Clara County Source: Root Policy Research.

HCD Revised Draft 2023-2031 Housing Element
A-75 Appendix A JanuaryNovemberSeptember March 20232024 Access to Opportunity
“Access to opportunity is a concept to approximate place-based characteristics linked to critical life outcomes. Access to opportunity oftentimes means both improving the quality of life for residents of low-income communities, as well as supporting mobility and access to ‘high resource’ neighborhoods. This encompasses education, employment, economic development, safe and decent housing, low rates of violent crime, transportation, and other opportunities, including recreation, food and healthy environment (air, water, safe neighborhood, safety from environmental hazards, social services, and cultural institutions).” Source: California Department of Housing and Community Development Guidance, 2021, page 34.

HUD developed an index for assessing fair housing by informing communities about disparities in access to opportunity based on race/ethnicity and poverty status. HUD only provides indicator scores for jurisdictions receiving CDBG funding. Because Los Gatos receives CDBG funds through the County, opportunity indicator scores are not available. Index scores are based on the following opportunity indicator indices (values range from 0 to 100):
• Low Poverty Index: The higher the score, the less exposure to poverty in a neighborhood. • School Proficiency Index: The higher the score, the higher the school system quality is in a neighborhood.
• Labor Market Engagement Index: The higher the score, the higher the labor force participation and human capital in a neighborhood.
• Transit Trips Index: The higher the transit trips index, the more likely residents in that neighborhood utilize public transit.
• Low Transportation Cost Index: The higher the index, the lower the cost of transportation in that neighborhood.
• Jobs Proximity Index: The higher the index value, the better access to employment opportunities for residents in a neighborhood.
• Environmental Health Index: The higher the value, the better environmental quality of a neighborhood.

HUD Opportunity Indicator scores for Santa Clara County are shown in Table A-5. Opportunity Indicator scores are calculated based on race/ethnicity and poverty status. In the County, the non-Hispanic White population, regardless of poverty status, received the highest index scores for low poverty, school proficiency, labor market, and jobs proximity. This indicates that the non-Hispanic White population countywide has the lowest exposure to poverty, best access to higher quality school systems, highest labor force participation, and best access to employment opportunities compared to other racial/ethnic groups. Of the total population, Black residents are most likely to utilize public transit and have lower transportation costs. The Asian/Pacific Islander community scored highest for environmental health. Based on County HUD Opportunity Indicators, the Hispanic community has the highest exposure to poverty, lower quality school systems, lowest labor force participation, and poorest environmental quality compared to other racial/ethnic groups

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-76
Table A-5. HUD Opportunity Indicators by Race/Ethnicity – Santa Clara County (2020) Low
Poverty
School
Prof.

Labor
Market
Transit
Low
Transp.

Cost
Jobs Prox. Env. Health
Total Population
White, non-Hispanic 76.38 77.08 78.89 75.69 93.23 52.48 46.10 Black, non-Hispanic 64.92 65.05 66.57 79.05 94.30 49.55 41.09 Hispanic 56.19 59.03 55.93 76.54 93.74 41.88 40.99
Asian or Pacific Islander, nonHispanic

71.84 71.51 72.42 78.43 93.55 50.48 47.15
Native American, non-Hispanic 65.48 66.00 65.61 76.27 93.62 47.76 42.60 Population below federal poverty line
White, non-Hispanic 69.49 71.96 73.88 78.15 94.10 55.65 42.92 Black, non-Hispanic 62.04 61.26 61.26 79.45 94.25 49.74 40.54 Hispanic 48.55 54.67 50.31 78.16 94.36 43.19 39.13
Asian or Pacific Islander, nonHispanic

61.92 64.74 61.89 79.76 94.17 48.91 43.05
Native American, non-Hispanic 58.98 55.74 58.53 80.11 94.25 53.36 42.28 Source: HUD AFFH Database – Opportunity Indicators, 2020.

The California Tax Credit Allocation Committee (TCAC) in collaboration with HCD developed a series of opportunity maps that help to identify areas of the community with good or poor access to opportunity for residents. These maps were developed to align funding allocations with the goal of improving outcomes for lowincome residents, particularly children.

Figure A-44 illustrates TCAC Opportunity Areas across the region. The opportunity maps highlight areas of highest resource, high resource, moderate resource, moderate resource (rapidly changing), low resource and high segregation and poverty. TCAC provides opportunity maps for access to opportunity in quality education, employment, transportation, and environment. Opportunity scores are presented on a scale from zero to one and the higher the number, the more positive the outcomes.

Figures A-44 and A-45 show the TCAC Opportunity Score for Los Gatos and the region in 2023. Los Gatos is scored as an area with the highest resources, similar to surrounding areas. Primary findings presented in the following mapsamong the region include:
 Los Gatos is considered to be a high resource area (or highest resource area), similar to neighboring cities including Saratoga and Cupertino. These trends are likely the result of higher household incomes in these areas.
 Campbell and San Jose follow different trends: a few census tracts in Campbell are highest resource areas though much of the city ranges from moderate to high resource. San Jose has a large number of census tracts that are of low resources. Very few census tracts are scored as the highest resource area.  Only one census tract in San Jose was scored as high segregation and poverty. A few areas in San Francisco and San Leandro also have high segregation and poverty.  Across the region, the highest resource areas are located along the western coast and spans from San Mateo to Los Gatos. South San Francisco and Redwood City (in part) have lower opportunity scores.

HCD Revised Draft 2023-2031 Housing Element
A-77 Appendix A JanuaryNovemberSeptember March 20232024 These patterns are likely related to the median household incomes in the region: areas with lower resources are more likely to have lower incomes than households earning over $175,000 in Los Gatos and neighboring communities.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-78
Figure A-2144 TCAC Opportunity Areas Composite Score by Census Tract, Los Gatos, 20212023 Source: California Department of Housing and Community Development AFFH Data Viewer.

HCD Revised Draft 2023-2031 Housing Element
A-79 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-?? shows a regional map of resource opportunity. Resources are concentrated in Los Gatos, Saratoga, and Cupertino, with less resource opportunity the closer to San Jose one gets.

Figure A-45 Regional COG Geography TCAC/HCD Opportunity Map by Census Tract, (HDC, 2023) Source: California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-80
TCAC’s economic opportunity score comprises poverty, adult educational attainment, employment, job proximity, and median home value for Los Gatos. Figure A-22 46 illustrates the population living in high resource areas by race in Los Gatos.

Figure A-2246 Population Living in High Resource Areas by Race Source: ABAG Housing Needs Data Workbook, California Tax Credit Allocation Committee (TCAC)/California Housing and Community Development (HCD), Opportunity Maps (2020); U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B03002 Economic Oopportunity
. Economic outcomes are an important indicator in identifying economic disparities including job access and career development (among others). This section provides employment and job growth, economic opportunity scores for Los Gatos and the region as well as job proximity analyses.

The job to household ratio for Los Gatos is in line with the Bay Area but lower than Santa Clara County’s (Appendix B, Figure B-8), 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 (Figure B-7), 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 workers for low wage jobs.
 Notably, Los Gatos had 19,843 jobs in 2018 compared to 14,573 job holders (Appendix B, Figure B-5), indicating a healthy job market for local residents and a need for in-commuting to fill the unoccupied jobs.  Most jobs in Los Gatos are in Financial and Professional Services and Health and Educational Services .  Unemployment in Los Gatos is five percent, below the county and area averages (Appendix B, Figure B10). 16%
70%
9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Low Resource
or High
Segregation
and Poverty
Area
Moderate
Resource Area
High/Highest
Resource Area Percent of PopulationHispanic 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-81 Appendix A JanuaryNovemberSeptember March 20232024 Mirroring theSimilar to the resource opportunity map, Figure A-47 shows a concentration inof economic opportunities in Saratoga and Cupertino. Opportunity is also concentrated in Los Gatos, but though there are some areas with less positive areas with a smaller chance at positive economic outcomes than other areas in the town. However, the area generally benefits from positive economic opportunity, in contrast to San Jose, which showcases large economic opportunity disparity. Key differences between regional trends and Santa Clara County are summarized below.
 While many cities in Santa Clara County have positive economic outcomes, San Jose has a large concentration in the middle of the city where residents have less positive economic outcomes.  Sunnyvale, Cupertino, and Saratoga residents are more likely than other county and regional residents to have the most positive economic outcomes which is likely related to higher household incomes in these areas.
 For the region overall, less positive economic outcomes are concentrated near San Leandro, Redwood City, Vallejo, Concord, Livermore, Gilroy, Antioch, and Watsonville. This could be related to numerous factors including job proximity, jobs available in the area, and or less resources available for economic development.
 VeryVarying degrees of economic opportunity scores suggest disparities in accessing employment. Los Gatos and other cities located in Santa Clara County will need to address these disparities through policies and programs focusing on the economic development for lower income households.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-82
Figure A-47 COG Geography TCAC/HDC Opportunity Map – Economic Score (HCD, 2023) Source: California Department of Housing and Community Development AFFH Data Viewer.

HCD Revised Draft 2023-2031 Housing Element
A-83 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-48. Regional COG Geography TCAC/HDC Opportunity Map – Economic Score, 2023 Source: California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-84
Job proximity is one of the most important indicators of equal economic opportunity. Based on the previous graphicseconomic opportunity score illustrated above, Figure A-49 is unsurprising. Jobs accessible by transit lines are concentrated in San Jose, Sunnyvale and parts of Santa Clara and Campbell, all of which have larger transit systems for residents., also where larger transit systems are located. For the areas without data, Saratoga and Los Gatos are either lacking data or have a comparatively smaller number share of jobs accessible to residents of job opportunities for residents accessible by transit rides less than 45 minutes long. These findings are presented in Figure A-49 along with a regional analysis in Figure A-50. Key similarities and differences are outlined below.
 In Santa Clara County, Sunnyvale, Campbell, San Jose, and communities located east of Los Gatos have the largest number of jobs accessible by a 45-minute transit ride. Residents living near Almaden Quicksilver County Park have substantially few job opportunities accessible by transit.  In the region, jobs accessible by transit are mainly concentrated in San Francisco, Oakland, Daly City, and communities located south of Palo Alto. This is likely the result of more transit systems available to residents as these are larger cities than that in Santa Clara County with more job opportunities concentrated where residents live.
 There are fewer jobs accessible in the northern parts of the region specifically in Vallejo, Stockton, Livermore, and Salinas though this is likely due to being more remote from areas with high concentrations of job opportunities for workers.

HCD Revised Draft 2023-2031 Housing Element
A-85 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-49. Jobs Within a 45 Minute Transit Ride by Block Group, Los Gatos, 2018 Source: California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-86
Figure A-50. Regional Jobs Within a 45 Minute Transit Ride by Block Group, 2018 Source: California Department of Housing and Community Development AFFH Data Viewer.

HCD Revised Draft 2023-2031 Housing Element
A-87 Appendix A JanuaryNovemberSeptember March 20232024 Expanding on the above analyses, Figures A-51 and A-52 show the number of jobs accessible by a 45-minute drive in Los Gatos and the region, Primary findings include:
 Los Gatos and Saratoga have lessfewer jobs available to residents that are accessible by a 45-minute drive than other cities in Santa Clara County suggesting that residents in these cities have long commutes and or do not have equal access to a wide range of jobs located elsewhere.  Sunnyvale, Santa Clara, Campbell, and San Jose (in part) have the largest concentration of jobs accessible within a 45 minute drive. Mountain View and Cupertino follow similar patterns as well.  Regional patterns are similar to that shown above with the greatest concentration of jobs located in San Francisco, Oakland, San Leandro, San Mateo, and communities around Fremont.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-88
Figure A-41 Jobs Within a 45 Minute Drive by Block Group, Los Gatos, (Smart Locations Database, 2018)
Source: California Department of Housing and Community Development AFFH Data Viewer.

HCD Revised Draft 2023-2031 Housing Element
A-89 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-42. Regional Jobs Within a 45 Minute Drive by Block Group, 2018 Source: California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-90
Education
. Los Gatos is served by the Los Gatos-Saratoga Union High School District, the Los Gatos Union Elementary School, the San Jose Union School District, Campbell Union School District, and the Cambrian Elementary School DistrictSaratoga Elementary School Districts, Loma Prieta Joint Union Elementary, and Lakeside Joint School District. The most complete data, due to halted data collection during the COVID pandemic, was from 2019 and highlights a 97.7 percent graduation rate among all students in the Los Gatos-Saratoga Union high school, a small increase over 2018 (97.1 percent). When broken down by race/ethnicity, Asian students graduated at a slightly higher rate of 98 percent, while Hispanic and White students graduated at 95 percent and

96.5 percent respectively. There were not enough African American students enrolled to provide accurate data (less than 11 total). The lowest graduation rate was among students with a disability, yet still relatively high at 88 percent.

The Los Gatos Union Elementary served 2,710 students in 2021, down from 3,024 from 2019, the last year with complete data. White students accounted for 64 percent of the student body, with Asian (19 percent) and Hispanic students (9 percent) accounting for the majority of the remainder. The school included four percent socioeconomically disadvantaged students, one homeless student, and seven percent students with a disability.

Saratoga Elementary had 1,657 students in 2021 and 1,765 in 2019. At Saratoga, 57 percent of students are Asian and White students accounted for 26 percent and Hispanic students another six percent. Saratoga Elementary served a student population with 11 percent disabilities, two percent socioeconomically disadvantaged, and no homeless students.

TCAC’s education score is based on math proficiency, reading proficiency, high school graduation rates, and the student poverty rate and are presented on a scale from zero to one where higher numbers suggest more positive education outcomes. . According to TCAC’s educational opportunity map, every census tract in Los Gatos scores higher than 0.75, —indicating the highest positive educational outcomes (Figure A-23). Opportunity scores are presented on a scale from zero to one and the higher the number, the more positive the outcomes. As shown in Figure A-43, all census tracts in Los Gatos show residents as having the most positive educational outcomes similar to Saratoga. Campbell has a mix of outcomes ranging from 0.25 to greater than 0.75.

HCD Revised Draft 2023-2031 Housing Element
A-91 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-2343. TCAC Opportunity Areas Education Score 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-92
Transportation
. Transportation is heavily linked with housing choice opportunity as well as equal access to employment and quality education. High quality and accessible transit stops grant individuals without access to a vehicle and or individuals unable to drive the ability to get to work. Figures A-44 and A-45 show the number and distribution of high quality transit stops in Los Gatos and the region.

All Transit explores metrics that reveal the social and economic impact of transit, specifically looking at connectivity, access to jobs, and frequency of service.15 All Transit provides data and rankings based on transit trips and employment opportunities accessible by transit. All Transit gave Santa Clara County a performance score of 6.5, indicating a “moderate combination of trips per week and number of jobs accessible enabling moderate number of people to take transit to work.” According to All Transit, 87.8 percent of jobs are located within a half mile of transit and 89.6 percent of workers live within a half mile of transit in the County. Transit connectivity in the County is best in and around the City of San Jose. Comparatively, Santa Cruz County and San Mateo County have lower performance scores while Alameda has a higher performance score.

The All-Transit performance score and connectivity map for Los Gatos is shown in Figure A-44. The Town received a performance score of only 3.7 indicating a low combination of trips per week and number of employment opportunities accessible by transit. The northwestern area of the Town has the best connectivity, access to jobs, and frequency of service. Approximately 94 percent of jobs are located within a half mile of transit but only 80.4 percent of workers live within a half mile of transit in the Town according to All Transit data.

Figure A-44. All Transit Performance Score and Connectivity Map, Los Gatos, 2019 Source: All Transit Metrics – Los Gatos, CA, 2019.

Los Gatos and neighboring Saratoga are both lacking in high quality, accessible transit stops. which grant people without access to cars the ability to get to work. Most the region has more transit stops throughout their communities, the worst being Los Gatos with just a couple stops up North. Primary findings from the local and regional analysis are provided below.
15 AllTransit, TransitCenter, Bosch, and the Center for Neighborhood Technology (CNT). 2019. Accessed November 2023. https://alltransit.cnt.org/.

HCD Revised Draft 2023-2031 Housing Element
A-93 Appendix A JanuaryNovemberSeptember March 20232024  There are very few high quality transit stops located in Los Gatos. For those available to residents, these stops are largely concentrated on the northern edges of the town. Conversely, Sunnyvale and San Jose have a large number of quality transit stops for residents.  Saratoga follows similar patterns though there are multiple stops located near West Valley College and the outer edges of the city. Campbell has numerous transit stops of high quality and are distributed relatively evenly.
 Transportation in Los Gatos trails behind the region substantially. High quality transit stops are concentrated along the coasts of the Bay Area specifically San Francisco, San Mateo, Redwood City, Oakland, San Leandro, and Fremont. This could be related to high density in these areas and or the number of jobs available (among others).

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-94
Figure A-44. High Quality Transit Stops, Los Gatos, 2022 Source: California Department of Housing and Community Development AFFH Data Viewer.

HCD Revised Draft 2023-2031 Housing Element
A-95 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-45. High Quality Transit Stops In the Region, 2022 Source: California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-96
Figures A-46 and A-47 map high quality transit areas in Los Gatos and the region. Given the primary findings presented above, it’s unsurprising that most areas North of Los Gatos have high quality public transit. Los Gatos, along with Southern San Jose and parts of Saratoga and Cupertino lack enough transit systems to be high quality transit areas. For the region overall, high quality transit areas are concentrated in cities with several transit stops of high quality.

Figure A-46 High Quality Transit Areas, Los Gatos, (Caltrans, 2022) Source: California Department of Housing and Community Development AFFH Data Viewer

HCD Revised Draft 2023-2031 Housing Element
A-97 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-47. High Quality Transit Areas In the Region, 2022 Source: California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-98
Figures A-48 and A-49 show the housing and transportation index by block group for Los Gatos and the region.

Indexes are based on the percentage of household income spent on housing and transportation. Higher percentages indicate cost burden and severe cost burden among households in the town and region. Key similarities and differences shown in the maps include:
 Most households in Los Gatos spend between 50 percent and 75 percent of their income on housing and transportation. These households are mainly concentrated on the eastern and southern portions of the town, similar to Saratoga. There is only one census tract in Los Gatos with households spending 30 percent or less of their income on housing and transportation.  Trends in Los Gatos and Saratoga differ from Santa Clara County overall. Households in the county are more likely to be spending 30 percent (or less) to 50 percent of their income on housing and transportation.

These differences may be the result of Los Gatos and Saratoga’s high housing prices and limited options for public transportation which often provide a more affordable transportation option than owning a vehicle.  Households spending between 50 percent and 75 percent of their income on housing and transportation are concentrated along the coast from San Mateo to Watsonville. Households in Tracy, Napa, and Watsonville are spending more than 75 percent of their income on housing and transportation costs.

HCD Revised Draft 2023-2031 Housing Element
A-99 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-48. Housing and Transportation Index by Block Group, Los Gatos, 2022 Source: California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-100 Figure A-49. Regional Housing and Transportation Index by Block Group, 2022 Source: California Department of Housing and Community Development AFFH Data Viewer.

HCD Revised Draft 2023-2031 Housing Element
A-101 Appendix A JanuaryNovemberSeptember March 20232024 Environment
. TCAC’s opportunity areas environmental scores are based on the CalEnviroScreen four indicators, which identify areas disproportionately vulnerable to pollution sources such as ozone, PM2.5, diesel PM, pesticides, toxic release, traffic, cleanup sites, groundwater threats, hazardous waste, impaired water bodies, and solid waste sites.

Three-quarters of Los Gatos scores low on positive environmental outcomes, with no census tracts in the Town scoring over 0.5 out of one (Figure A-5024). Los Gatos almost uniformly had the lowest possible scores according to the CalEnviroScreen metric for 2021 meaning the Town has more positive environmental factors.

Figure A-5024 CalEnviroScreen 4.0, Los Gatos
Source: California Office and Environmental Health Hazard Assessment, CalEnviroScreen Maps and Data.

Figure A-51 shows the CalEnviroScreen score for the Bay Area region which shows areas with more negative environmental factors near San Francisco, Oakland, San Leandro, Vallejo, and Fairfield.

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

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-102 Figure A-51. Regional CalEnviroScreen 4.0 by Census Tract, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

HCD Revised Draft 2023-2031 Housing Element
A-103 Appendix A JanuaryNovemberSeptember March 20232024 Developed by the Public Health Alliance of Southern California (PHASC), the Healthy Places Index (HPI) is based on 25 community characteristics in eight categories including economic, social, education, transportation, neighborhood conditions, housing, clean environment, and healthcare.16 As shown in Figure A-52, Los Gatos scores high on the HPI meaning residents in the city have more healthy communities and outcomes. This is similar to much of the region excluding census tracts near Vallejo, Redwood City, San Francisco, Oakland, San Leandro, and San Jose.

Figure A-5225 California Healthy Places Index, Los Gatos Source: Public Health Alliance of Southern California, California Healthy Places Index. 16 https://healthyplacesindex.org/about/

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-104 Figure A-53. Healthy Places Index In the Region, 2022
Source: California Department of Housing and Community Development AFFH Data Viewer.

HCD Revised Draft 2023-2031 Housing Element
A-105 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-54 shows fire hazard severity zones as identified by CalFire for the region. As shown in the figure, much of the region is at risk specifically in Santa Clara County and cities including San Mateo, Redwood City, and Oakland. These patterns are particularly important for the Bay Area region especially as climate change is worsening conditions of fire hazardsworsens.

Figure A-54. Regional Fire Hazard Severity Zones, 2022
Source: California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-106 Disparities in Aaccess to Oopportunity
. All residents live in highly resourced areas, regardless of race or ethnicity (Figure A-22). Los Gatos and other surrounding areas are entirely high opportunity jurisdictions.

The Social Vulnerability Index (SVI) provided by the Center for Disease Control (CDC) ranks census tracts based on their ability to respond to a disaster and includes four themes of socioeconomic status, household composition, race or ethnicity, and housing and transportation. Figure A-26 55 illustrates SVI across the region and Figure A27 56 provides a closer look at SVI within Los Gatos, showing no neighborhoods are ill equipped to respond to disasters.

Figure A-2655 CDC/ATSDR Social Vulnerability Index 2020, Santa Clara County Source: CDC/ATSDR/GRASP, US Census Bureau, Esri StreetMapTM Premium

HCD Revised Draft 2023-2031 Housing Element
A-107 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-2756 Social Vulnerability Index by Census Tract, 2020, Los Gatos, 2018 Source: California Department of Housing and Community Development AFFH Data Viewer

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-108 Los Gatos does not have any disadvantaged communities as defined under SB 535 as, “the top 25 percent scoring areas from CalEnviroScreen along with other areas with high amounts of pollution and low populations.” 17 .

However, there are disadvantaged communities in Santa Clara County and across the region. Disadvantaged communities are mainly concentrated in Sunnyvale, San Jose, Oakland, and San Leandro (Figure A-57). 17 https://oehha.ca.gov/calenviroscreen/sb535

HCD Revised Draft 2023-2031 Housing Element
A-109 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-57. SB 535 Disadvantaged Communities In the Region, 2022 Source: California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-110 Disparities Sspecific to the Ppopulation Lliving with a Ddisability . Nine percent of the population in Los Gatos is living with at least one disability, compared to eight percent in the county. The most common disabilities in Los Gatos are ambulatory (4.8 percent), independent living difficulty (4.3 percent), and hearing difficulty (3.6 percent).

For the population 65 and over, the share of the population with ambulatory difficulties increases to 18.4 percent, independent living difficulty increase to 15.2 percent, and hearing difficulty was 13.8 percent. 15 percent of residents with a disability were unemployed in 2019, while only four percent unemployment for residents without a disability. Of the population of residents in Los Gatos that are between the ages of 18 and 64, and live with one or more disabilities, approximately 12.5 percent earned an income that was below the poverty level.

Living with one or more disabilities may create challenges in terms of accessibility to transportation, supportive services, and accessible housing units. The Town recognizes these challenges and intends to: allocate funds towards rehabilitating existing units to become more accessible; continue enforcing the “Reasonable Accommodations Ordinance;” promote accessibility design features; and create other housing opportunities for persons living with disabilities.

Source: California Department of Housing and Community Development Guidance, 2021, page 36.

A.910 Disproportionate Housing Needs
This section discusses disparate housing needs for protected classes including cost burden and severe cost burden, overcrowding, substandard housing conditions, homelessness, displacement, and other considerations.

Figure A-528 provides a summary of disproportionate housing needs in Los Gatos and the County.

Disproportionate Housing Needs
“Disproportionate housing needs generally refers to a condition in which there are significant disparities in the proportion of members of a protected class experiencing a category of housing need when compared to the proportion of members of any other relevant groups, or the total population experiencing that category of housing need in the applicable geographic area. For purposes of this definition, categories of housing need are based on such factors as cost burden and severe cost burden, overcrowding, homelessness, and substandard housing conditions.” Source: California Department of Housing and Community Development Guidance, 2021, page 39.

Disability
“Disability types include hearing difficulty, vision difficulty, cognitive difficulty, ambulatory difficulty, self-care difficulty, and independent living difficulty.”

HCD Revised Draft 2023-2031 Housing Element
A-111 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-528 Disproportionate Housing Needs in Los Gatos and Santa Clara County Source: California Department of Housing and Community Development AFFH Data Viewer Town
Town
Town

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-112 Housing Needs
. Since 2015, the housing that has received permits to accommodate growth has almost exclusively been priced for the higher incomes, with only two units permitted for low-income households and none for very low-income households.
 The vast majority of the Town’s homes were built between 1940 and 1979 (69 percent). After this period, housing production slowed, with only three percent of units built since 2010.  Los Gatos housing is becoming more limited by type with 76 percent single-family units, up from 71 percent in 2010. Multifamily housing, with five or more units, made up the second highest category of units (18 percent); there were sixty-four mobile/manufactured homes in Los Gatos18.  Eighty-four percent of owner-occupied homes in Los Gatos are valued over one million dollars with another 39 percent valued above two million dollars. This compares to 48 percent for the county and 35 percent for the Bay Area overall (Appendix B, Figure B-23). According to the Zillow Home Value Index, home values in Los Gatos are 63 percent higher than home values for the county and almost double the cost of housing in the Bay Area (Appendix B, Figure B-24).
 Rents in Los Gatos are most likely to be at least $2,000 per month (63 percent); 24 percent rent for $3,000 per month. While the Town’s rental costs higher than in the county, the trend of increasing rental costs matches the changes in the county and Bay Area overall.  Special needs of individuals with disabilities vary depending on the particular disability. For example, the needs of a blind person differ greatly from those of a person confined to a wheelchair. Special facilities, such as ramps, elevators, or specially designed restrooms necessary for wheelchair access are architectural features needed to make dwellings suitable for persons confined to wheelchairs. Special features needed by ambulatory persons constrained by other disabilities may not be architectural; rather, these might be simple alternatives to conventional dwelling units or furnishings and appliances that make ordinary tasks of housekeeping and home life less trying and more enjoyable. In families, the needs of persons with disabilities, in terms of special features, are fewer than those of a single person.

Nevertheless, a person with a disability in a family would still have special needs. Special architectural features could be valuable in giving this person greater independence, dignity, and quality of living.

The 2015-2019 Comprehensive Housing Affordability Strategy (CHAS) data indicates there were approximately 2,255 extremely low- and very low-income households living in Los Gatos. Extremely low-income households are those that earn less than 30 percent of the median family income (MFI). Very low-income households are those that earn 50 percent or less of the MFI. There are approximately 1,320 extremely low-income households in Los Gatos (owners and renters). Table A-1 provides data characterizing affordability and cost burden by income group. A total of 670 extremely low-income households in Los Gatos are living in renter-occupied housing units with at least one of the four housing problems. The housing problems identified by CHAS include the following:
 Units with physical defects (lacking complete kitchen or bathroom);  Overcrowded conditions (housing units with more than one person per room);  Housing cost burden, including utilities, exceeding 30 percent of gross income; or  Severe housing cost burdens, including utilities, exceeding 50 percent of gross income.

For renter-occupied units, extremely low-income households occupied the most units (670) with at least one housing problem. In contrast, owners earning an above moderate-income occupied the most housing units (820) with at least one housing problem. As the income level increases for owner-occupied units, the number of 18 Housing Needs Data Report: Los Gatos, ABAG/MTC Staff and Baird + Driskell Community Planning, 2021.

HCD Revised Draft 2023-2031 Housing Element
A-113 Appendix A JanuaryNovemberSeptember March 20232024 housing units with housing problems decreases with the exception of above moderate-income households.

Above moderate-income households show a sudden increase in the number of units with at least one housing problem. This may be an indicator of cost burden among above moderate-income households.

Table A-1 Housing Problems for all Households by Tenure, Los Gatos Income by Housing Problem Household has at least 1
of 4 Housing Problems
Household has none of the 4
Housing Problems or Cost Burden
not available, no other problems
Owners
Less-than or = 30% MFI 485 110
>30% to less-than or = 50% MFI 250 275
>50% to less-than or = 80% MFI 280 355
>80% to less-than or = 100% MFI 290 340
>100% MFI 820 4,635
Total 2,130 5,710
Renters
Less-than or = 30% MFI 670 55
>30% to less-than or = 50% MFI 315 95
>50% to less-than or = 80% MFI 400 165
>80% to less-than or = 100% MFI 305 225
>100% MFI 290 1,725
Total 1,980 2,260
*The four housing problems are: incomplete kitchen facilities, incomplete plumbing facilities, more than 1 person per room, and cost burden greater than 30%.
**The four severe housing problems are: incomplete kitchen facilities, incomplete plumbing facilities, more than 1.5 persons per room, and cost burden greater than 50%.

Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) 2013-2017.

Note: MFI = HUD Median Family Income, this is the median family income calculated by HUD for each jurisdiction, to determine Fair Market Rents (FMRs) and income limits for HUD programs. MFI will not necessary be the same as other calculations of median incomes (such as Census number), due to a series of adjustments that are made.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-114 The projected RHNA for extremely low-income households was based on the assumption that 50 percent of very low-income households qualify as extremely low-income households.19 The very low-income housing need is 537 housing units, which allows the Town to estimate 268 housing units as the extremely low-income housing need.

To address the needs of extremely low-income households, the Town will adopt housing programs to facilitate the construction of affordable and supportive housing for extremely low-income households. Programs that will directly impact extremely low-income households include:
 Implementation Program PN: Funds for Development for Extremely Low-Income (ELI) Households;  Implementation Program QAI: Habitat for Humanity Home Repair ProgramCountywide Home Repair Program; and
 Implementation Program SO: Affordable Housing Development.

All housing policies and programs can be found in Section 10.6 of the Housing Element.

Cost Bburden and Ssevere Ccost Bburden
. Cost burden occurs when household spend more than 30 percent of their gross household income on housing costs. Despite Los Gatos’ comparably high housing costs, cost burden, which occurs when households spend more than 30 percent of their gross income on housing costs andrates of cost burden are is slightly better than the County and Bay Area (Figure A-5929). This is indicative of a market with high barriers to entry meaning households need higher incomes to live in Los Gatos and surrounding areas.

Figure A-5929 Overpayment (Cost Burden) by Jurisdiction, 2019 Source: ABAG Housing Needs Data Workbook
Cost burden does vary by tenure (renter or ownership) in Los Gatos, Figure A-3060 with more renters experiencing cost burden and severe cost burden than owners. Renters experience a greater share of all forms of cost burden while owners experienced less of a cost burden. Figure A-31 and Figure A-32 illustrate cost burden by tenure and by census tract in Los Gatos, respectively.

Figure A-31, Cost Burden for Renter Households shows concentrations of cost burden are split between 20-40 percent cost burden and 40-60 percent cost burden, with the 40-60 percent concentration in the northwest region 19 https://www.hcd.ca.gov/planning-and-community-development/housing-elements/building-blocks/extremely-low-income-housing-needs

HCD Revised Draft 2023-2031 Housing Element
A-115 Appendix A JanuaryNovemberSeptember March 20232024 of the Town. Similarly, Figure A-32, Cost Burden for Homeowners reveals owner households experience the nearly the same levels of concentration in the same areas.

Figure A-3060 Overpayment (Cost Burden) by Tenure, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
Figures A-61 and A-62 map the distribution of cost burdened renters overpaying for their housing in Los Gatos and the region overall. Key findings at the town, county, and regional levels include:
 There is only one census tract in Los Gatos where less than 20 percent of renters are overpaying for their housing. The rest of the city ranges between 20 percent to 60 percent of cost burdened renters. These patterns are relatively similar to Saratoga but far different from Campbell and San Jose where most renters are cost burdened.
 In Santa Clara County, San Jose has a comparatively larger share of cost burdened renters with multiple census tracts showing 60 percent to 80 percent of renters as cost burdened. This could be related to San Jose’s comparatively low household income.
 The region overall follows similar trends though cost burden is substantially more prominent among renters in Napa, Vallejo, Fairfield, Concord, Oakland, Santa Cruz, and Watsonville. These trends are unsurprising given rising housing costs across the Bay Area.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-116 Figure A-61. Overpayment (Cost Burden) by Renters 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-117 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-62. Overpayment (Cost Burden) by Renters 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-118 Figures A-63 and A-64 show cost burden by owner households in Los Gatos and the region. As shown in the maps:
 Census tracts in Los Gatos with the smallest concentration of cost burdened renters has the largest concentration of homeowners overpaying for their housing;  Homeowners are more likely to be cost burdened in Los Gatos than surrounding areas, excluding San Jose which has a census tract where more than 80 percent of owners are cost burdened;  Homeowners are cost burdened across the Bay Area region specifically in San Francisco, Redwood City, Watsonville, Santa Cruz, and areas neighboring Stockton and Tracy; and  These patterns indicate a widespread housing affordability problem where owners are occupying units they cannot afford. Exacerbated by rising housing costs, owners across the region are at a greater risk of displacement and or long-term housing instability.

HCD Revised Draft 2023-2031 Housing Element
A-119 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-63. Overpayment (Cost Burden) by Homeowners 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-120 Figure A-64 Overpayment (Cost Burden) by Homeowners In the Region (ACS, 2017-2021) Source: California Department of Housing and Community Development AFFH Data Viewer

HCD Revised Draft 2023-2031 Housing Element
A-121 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-6533 illustrates the Location Affordability Index (LAI) for Los Gatos, which is an indicator of housing and transportation costs at the neighborhood level. The Town’s LAI suggests that the majority of residents are estimated to spend between $2,000 and $2,500 per month on housing and transportation costs combined.

When comparing cost burden for renter households by census tract (Figure A-31) and LAI (Figure A-33), it can be inferred that concentrations of renter cost burden are highest (40-60 percent concentration) where LAI are actually lower (estimated to spend less than $2,000). As stated earlier, this is indicative of a market with high barriers to entry.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-122 Figure A-3365 Location Affordability Index by Census Tract, Los Gatos, Households, 2019 Source: California Department of Housing and Community Development AFFH Data Viewer

HCD Revised Draft 2023-2031 Housing Element
A-123 Appendix A JanuaryNovemberSeptember March 20232024 Cost burden by income in Los Gatos decreases for each increase in earned income (AMI category) with a vast difference between the highest and lowest income groups (Figure A-3466). Seventy-eight percent of the lowest income group (zero percent to 30 percent of AMI) pay more than 50 percent of their gross household incomes in housing costs.

Figure A-3466 Overpayment (Cost Burden) by AMI, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
The lack of publicly subsidized housing and opportunity for use of Housing Choice Vouchers limits the ability of low-income households (who are typically cost burdened) to live in the Town (Figure A-14).

There is consistency in housing cost burden in Los Gatos by race and ethnicity. All households have similar shares of residents paying less than 30 percent of their income on housing. Hispanic and Black/African American residents were the only groups to experience a greater percentage of households spending 50 percent or more of their income than 30 percent to 50 percent of their income, indicating larger shares of extreme cost burdens, see Figure A-35. .

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-124 Figure A-6735 Overpayment (Cost Burden) by Race and Ethnicity, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
When analyzing cost burden by family size in Los Gatos, households with five or more persons experience less cost burden (22 percent) compared to all other household types (35 percent) (Figure A-7236).

Figure A-6836 Overpayment (Cost Burden) by Family Size, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
Overcrowding
. The vast majority of households (97 percent) in Los Gatos are not overcrowded (less than the County and Bay Area) as indicated by more than one occupant per room (Figure A-7338). Renter households are more likely to be overcrowded, with approximately four percent of renter households with more than one occupant per room (Figure A-6938).

HCD Revised Draft 2023-2031 Housing Element
A-125 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-6937 Occupants per Room by Jurisdiction, 2019
Source: ABAG Housing Needs Data Workbook
Figure A-7038 Occupants per Room by Tenure, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
Hispanic residents experience the highest rates of overcrowding (Figure A-7139). The rest of the Town’s population experiences approximately 2 percent to 3.5 percent overcrowding.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-126 Figure A-7139 Overcrowding by Race and Ethnicity, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
Figure A-7240 illustrates occupants per room by AMI in Los Gatos. In Los Gatos, moderate-income households experience the highest rate of overcrowding (1.7 percent) followed by low-income households (0.9 percent) and extremely low-income households (0.9 percent). Moreover, extremely low-income households report only experiencing overcrowded housing conditions (0.9 percent). This may be an indicator of limited housing options for extremely low-income households in the Town.

Figure A-7240 Occupants per Room by AMI, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook

HCD Revised Draft 2023-2031 Housing Element
A-127 Appendix A JanuaryNovemberSeptember March 20232024 Figures A-4173 and A-74 , Overcrowded Households by Census Tract, illustrates the percentage of overcrowded households in Los Gatos and the Bay Area region, revealing approximately eight percent overcrowding in the Town (equivalent to the statewide average). Los Gatos and surrounding areas of Campbell, Saratoga and most of Cupertino have similar rates of overcrowding; generally, at less than 5 percent of the total resident population.

Percentages of overcrowding groware higher in San Jose and Santa Clara areascensus tracts along with small a few areas in Sunnyvale.

Key findings from the regional analysis include:
 Overcrowding is most prominent in areas near Oakland, San Leandro, Redwood City, San Jose, Stockton, and Watsonville.
 San Francisco has surprisingly lower rates of overcrowding in line with Los Gatos and Santa Clara County (in part). This could be the result of larger units available to residents and or high household incomes in these areas. With more income, households are able to rent/purchase larger homes that meet their size needs.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-128 Figure A-73 Overcrowding by Census Tract, Los Gatos, Regional Map (ACS, 2017-2021) Source: California Department of Housing and Community Development AFFH Data Viewer

HCD Revised Draft 2023-2031 Housing Element
A-129 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-74. Regional Overcrowding by Census Tract, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-130 Given patterns of overcrowding in Los Gatos and the county, Ssevere overcrowding is only presentmost notable in San Jose, Santa Clara, and parts of Sunnyvale., matching These areas overlap with the areas above that suffer fromhave greatest shares of higher populations of general overcrowding. Less than five percent of households in Los Gatos, Saratoga, Campbell and the immediate surrounding areas have less than 5% of the population who are severely overcrowded.

These findings are consistent with the Bay Area overall with the largest concentration of severely overcrowded households located in San Rafael followed by areas in San Francisco, Oakland, San Jose, and Watsonville.

Figure A-75 Severe Overcrowding by Census Tract, Los Gatos, (ACS, 2017-2021) Source: California Department of Housing and Community Development AFFH Data Viewer

HCD Revised Draft 2023-2031 Housing Element
A-131 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-76. Serve Overcrowding by Census Tract In the Region, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-132 Los Gatos does not have a large area occupied by a high percentage of renters. There are fewer renters in Saratoga with only one section of Saratoga with 20 percent to 40 percent of residents being renters. San Jose, Sunnyvale, Santa Clara, and Campbell all have higher percentages of renters than Los Gatos.

Figure A-77 Renter Occupied Housing Units (ACS, 2017-2021) Source: California Department of Housing and Community Development AFFH Data Viewer

HCD Revised Draft 2023-2031 Housing Element
A-133 Appendix A JanuaryNovemberSeptember March 20232024 Substandard Hhousing
. Data on housing condition are limited, with the most consistent data available across jurisdictions found in the American Community Survey (ACS), which captures units in substandard condition as self-reported in Census surveys. Renters in Los Gatos report living in substandard housing in 5.5 percent of housing units, with the more units lacking complete kitchen facilities (4.1 percent). As shown in Figure A-4278, about 0.4 percent of owner households are lacking complete kitchens and 0.6 percent lack complete plumbing.

Figure A-7842 Percent of Units Lacking Complete Kitchen and Plumbing Facilities, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
Figures A-79 and A-80 show the percent of units lacking complete plumbing facilities in Los Gatos and the region.

Primary findings and regional differences are summarized below.  Only one census tract in Los Gatos show two to five percent of units as lacking complete plumbing facilities. Less than two percent of units lack complete plumbing for the rest of the town.  Campbell follows similar trends as Los Gatos with one census tract having a larger supply of units without complete plumbing. Saratoga and Cupertino have no concentrations of such units with less than two percent of units lacking plumbing across both cities.
 Regional trends are similar to Santa Clara County: very few census tracts have a large supply of units lacking complete plumbing. Comparatively greater concentrations are located in Sunnyvale, San Jose, Santa Cruz, San Francisco, and Brentwood.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-134 Figure A-79. Percent of Units Lacking Complete Plumbing 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-135 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-80. Units Lacking Complete Plumbing 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-136 Expanding on the analysis above, Figures A-81 and A-82 show the percent of units lacking complete kitchen facilities in Los Gatos and the region. Importantly, the only census tract in Los Gatos with units that lack complete plumbing is also the only tract to have a higher percentage of units lacking complete kitchen facilities at around five percent to ten percent of units. This is a greater share than Saratoga and similar to Campbell. Primary findings illustrated in the following maps include:
 There is one census tract located east of Campbell where ten percent to fifteen percent of units lack complete kitchen facilities. Despite having less than two percent of units without plumbing, multiple census tracts in Cupertino have a greater supply of units without complete kitchens.  San Francisco is the only city in the region to have a census tract where more than 15 percent of units lack complete kitchen facilities. Areas with higher shares of these units are located near Redwood City, Sunnyvale, San Jose, Fremont, and Concord.

HCD Revised Draft 2023-2031 Housing Element
A-137 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-81. Percent of Units Lacking Complete Kitchens 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-138 Figure A-82. Units Lacking Complete Kitchens In the Region by Census Tract, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

HCD Revised Draft 2023-2031 Housing Element
A-139 Appendix A JanuaryNovemberSeptember March 20232024 Patterns of substandard housing conditions (e.g., lacking complete plumbing/kitchen facilities) across Santa Clara County and the Bay Area region are supported by the large number of housing units built before 1960. Figures A83 and A-84 show the distribution of units built before 1960 in the county and region. As shown in the maps below:
 Census tracts in Los Gatos with concentrations of substandard units have a comparatively larger supply of units built before 1960 at between 40 percent and 60 percent of total units. This contrasts with most of Saratoga, which has a smaller supply of older units.
 Census tracts in Santa Clara and San Jose have older units: nearly all units in these tracts were built in or before 1960.
 Compared to the Bay Area region, Santa Clara County has a smaller supply of units built before 1960 though the housing of housing does vary across the region. The largest concentrations of old units are in San Francisco, San Mateo, Redwood City, Oakland, and San Leandro.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-140 Figure A-83. Age of Structures 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-141 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-84. Age of Structures 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-142 Homelessness
. In 2019, 9,706 people were experiencing homelessness in the County during the one-day count (point-in-time), with only 18 percent of people in emergency or transitional shelter while the remaining 82 percent were unsheltered. In Los Gatos the count was 16, all of whom were unsheltered. In 2022 the number of homeless counted in Los Gatos increased to 58. The majority of unsheltered people experiencing homelessness were in households without children. The majority of people in transitional housing were in households with children or people without children, as shown in Figure A-8543.

Figure A-8543 Homelessness by Household Type and Shelter Status, Santa Clara County, 2019 Source: ABAG Housing Needs Data Workbook
Figures A-86 and A-87 illustrate HUD’s Point In Time (PIT) Count for 2021 in Los Gatos and the Bay Area. Given the region’s housing costs which continue to increase, it is unsurprising that more than 5,000 people in most Santa Clara County communities are homeless. For the region overall, San Francisco and cities across the Bay have the largest concentrations of individuals experiencing homelessness. Homelessness is less concentrated in areas near San Mateo, Redwood City, Santa Cruz, and Watsonville, all of which have a homeless population of up to 1,000 people.

Sheltered - Emergency Shelter 7 377 696
Sheltered - Transitional Housing 3 301 400
Unsheltered 266 243 7,413
People in
Households
Solely Children
People in
Households
with Adults
and Children
People in
Households
Without
Children

HCD Revised Draft 2023-2031 Housing Element
A-143 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-86. Point In Time Count by CoC Level, Los Gatos, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-144 Figure A-87. Regional Point In Time Count by CoC Level, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

HCD Revised Draft 2023-2031 Housing Element
A-145 Appendix A JanuaryNovemberSeptember March 20232024 Homelessness in Los Gatos will likely grow in the coming years if there are no affordable options for low-income residents, especially given the Town’s small supply of affordable housing, shelters, and transitional housing units.

Displacement
. According to the Sensitive Communities map of vulnerable communities, one area north of Highway 9 and west of Highway 17 were vulnerable to displacement (Figure A-27). The Town has 169 assisted units, but all were rated as low risk of conversion.

Displacement Sensitive Communities
“According to the Urban Displacement Project, communities were designated sensitive if they met the following criteria:
 They currently have populations vulnerable to displacement in the event of increased redevelopment and drastic shifts in housing cost. Vulnerability is defined as:
 Share of very low-income residents is above 20 percent, 2017 AND the tract meets two of the following criteria:
 Share of renters is above 40 percent, 2017
 Share of people of color is above 50 percent, 2017
 Share of very low-income households (50 percent AMI or below) that are severely rent burdened households is above the county median, 2017
 They or areas in close proximity have been experiencing displacement pressures.

Displacement pressure is defined as:
 Percent change in rent above county median for rent increases, 2012-2017 OR
 Difference between tract median rent and median rent for surrounding tracts above median for all tracts in county (rent gap), 2017”
Source: https://www.sensitivecommunities.org/.

Residents in Santa Clara County are at low risk of displacement, excluding households in San Jose which has several census tracts at elevated, high, or extreme displacement risk. This is in line with displacement risks in Los Gatos and surrounding cities specifically Cupertino, Saratoga, and Campbell (in part). These findings are illustrated in Figure A-88.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-146 Figure A-88. Estimated Displacement Risk – Overall Displacement by Census Tract, Los Gatos, 2022 Source: University of California Berkely (UCB) Urban Displacement Project and California Department of Housing and Community Development AFFH Data Viewer.

Figure A-89 shows displacement risk for households across the Bay Area as identified by the University of California Berkely Urban Displacement Project. As shown in the figure, households in several cities are at the highest risk for displacement specifically Richmond, Oakland, Hayward, San Francisco (and South San Francisco), Daly City, Redwood City, and Palo Alto. Berkely has one census tract at elevated, high, or extremely displacement risk though this may be driven by the city’s large college population.

HCD Revised Draft 2023-2031 Housing Element
A-147 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-89. Regional Estimated Displacement Risk – Overall Displacement by Census Tract, 2022 Source: University of California Berkely (UCB) Urban Displacement Project and California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-148 Figures A-90 and A-91 show risk of displacement for households with incomes at or below 50 percent Area Median Income (AMI) in Los Gatos and the Bay Area. Similar to overall displacement, households with incomes at or below 50 percent AMI in Los Gatos are at lower risk, consistent with surrounding cities. San Jose is the only city to have a high concentration of at-risk households which is likely related to the city’s larger population of lower income households. As shown throughout the report, households need incomes above 50 percent AMI to live in Los Gatos without being cost burdened or homeless.

These patterns are consistent with most of the region though key differences exist in San Francisco and adjacent cities where displacement is a high risk for households at this income level. This is most notable in San Francisco, Richmond, Oakland, and part of Daly City.

HCD Revised Draft 2023-2031 Housing Element
A-149 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-90 Estimated Displacement Risk – 0 – 50% AMI by Census Tract, Los Gatos, 2022 Source: University of California Berkely (UCB) Urban Displacement Project and California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-150 Figure A-91. Regional Estimated Displacement Risk – 0 – 50% AMI by Census Tract, 2022 Source: University of California Berkely (UCB) Urban Displacement Project and California Department of Housing and Community Development AFFH Data Viewer.

Figures A-92 and A-93 show risk of displacement for households with incomes at or between 50 percent and 80 percent AMI in Los Gatos and the region. Risk of displacement for these households are similar for lower income households in both Santa Clara County and the Bay Area. This is likely related to rising housing prices across the region that has made it increasingly difficult for households in this income range to keep their housing.

HCD Revised Draft 2023-2031 Housing Element
A-151 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-92 Estimated Displacement Risk – 50%-80% AMI by Census Tract, Los Gatos, (UCB, Urban Displacement Project 2022)
Source: University of California Berkely (UCB) Urban Displacement Project and California Department of Housing and Community Development AFFH Data Viewer.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-152 Figure A-93. Regional Estimated Displacement Risk – 50%-80% AMI by Census Tract, 2022 Source: University of California Berkely (UCB) Urban Displacement Project and California Department of Housing and Community Development AFFH Data Viewer.

HCD Revised Draft 2023-2031 Housing Element
A-153 Appendix A JanuaryNovemberSeptember March 20232024 Access to Mmortgage Lloans.

In many communities, disparities by race and ethnicity are prevalent for home mortgage applications, particularly in denial rates. This is less true in Los Gatos (Figure A-9444). Mortgage denial rates range from 17 percent to 25 percent. American Indian or Alaska Native, Non-Hispanic and Black/African American residents experienced the next highest rejection rate at 25 percent and 22 percent.

Figure A-944 Mortgage Applications and Acceptance by Race, 2018 and 2019 Source: ABAG Housing Needs Data Workbook, Federal Financial Institutions Examination Council's (FFIEC) Home Mortgage Disclosure Act loan/application register (LAR) files.

A.1011 Distribution of Sites Inventory
The proposed housing sites in the Sites Inventory are well distributed to increase opportunities throughout the Town. In addition, Accessory Dwelling Units and Senate Bill 9 units have been distributed throughout the Town, where single-family neighborhoods are the most prominent housing type. The distribution of RHNA units by AFFH variable areis described below.
11%
25% 15%
22%
17% 18% 17%
25%
13%
11%
12% 14% 11%
25%
5%
5%
25%
66%
56%
65% 59% 64%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
American
Indian or
Alaska
Native, NonHispanic
Asian / API,
Non-Hispanic
Black or
African
American,
Non-Hispanic
White, NonHispanic
Hispanic or
Latinx
Unknown Loan Applications
Loan originated
File closed for incompleteness
Application withdrawn by applicant
Application denied
Application approved but not accepted

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-154 Potential Effects on Segregation and Integration
Race/Ethnicity
As discussed above, Los Gatos is primarily comprised of White majority populations. The distribution of RHNA units by racial/ethnic minority population at the tract level is shown in Table A-2 and Figure A-95. More than half of units selected to meet the RHNA are in tracts where 20 percent to 40 percent of the population belongs to a racial or ethnic minority group, including 68 percent of very low income RHNA units, 58.5 percent of low-income units, 63.5 percent of moderate-income units, and 40 percent of above moderate-income units. A significantly larger proportion of above moderate-income units (43 percent) are in tracts where 40 percent to 60 percent of the population belongs to a racial or ethnic minority group compared to very low (18.5 percent), low (16.2 percent), and moderate-income units (17.1 percent). The Town’s RHNA strategy does not disproportionately allocate lower or moderate-income units in areas with larger non-White populations. RHNA sites suitable for housing of all affordability levels are distributed throughout Los Gatos to the greatest extent possible.

Table A-2 Distribution of RHNA Units by Racial/Ethnic Minority Population (2019) Racial/Ethnic Minority
Population (Tract)
Very Low Income Low Income Moderate Income
Above Moderate
Income
Total
Units Percent Units Percent Units Percent Units Percent Units Percent <20% 86 13.6% 90 25.2% 66 19.4% 109 17.0% 351 17.8%
20-40% 431 68.0% 209 58.5% 216 63.5% 256 40.0% 1112 56.4% 40-60% 117 18.5% 58 16.2% 58 17.1% 275 43.0% 508 25.8%
60-80% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
>80% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
Total 634 100.0% 357 100.0% 340 100.0% 640 100.0% 1971 100.0%

HCD Revised Draft 2023-2031 Housing Element
A-155 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-95 Sites Inventory and Racial/Ethnic Minority Population by Tract (2019) Source: HCD AFFH Data Viewer 2.0, 2023.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-156 Persons with Disabilities
Based on the HCD Data Viewer 2.0 and 2017-2021 ACS estimates, there are no Los Gatos tracts containing RHNA sites where more than 10 percent of the population experiences a disability. Sites selected to meet the Town’s RHNA do not exacerbate conditions related to populations of persons with disabilities.

Familial Status
The distribution of RHNA units by population of children residing in married couple households is presented in Table A-3 and Figure A-96. According to the HCD AFFH Data Viewer 2.0, based on 2017-2021 ACS estimates, more than 80 percent of children reside in married couple households in all but one tract. Consistent with the trend townwide, 74 percent of RHNA units are in tracts where more than 80 percent of children are in married couple households. The remaining 26 percent of RHNA units are in the tract where only 68 percent of children are in married couple households. A larger proportion of above moderate-income units are in this tract (43 percent) compared to lower and moderate-income units. There are no tracts in Los Gatos where more than 20 percent of children reside in single-parent female-headed households. The Town’s RHNA strategy dos not disproportionately place lower or moderate-income units in areas with higher rates of children in single-parent households.

Table A-3 Distribution of RHNA Units by Children in Married Couple Households (2021) Population of
Children in Married
Couple HHs (Tract)
Very Low Income Low Income Moderate Income
Above Moderate
Income
Total
Units Percent Units Percent Units Percent Units Percent Units Percent <20% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
20-40% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
40-60% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
60-80% 117 18.5% 58 16.2% 58 17.1% 275 43.0% 508 25.8%
>80% 517 81.5% 299 83.8% 282 82.9% 365 57.0% 1463 74.2% Total 634 100.0% 357 100.0% 340 100.0% 640 100.0% 1971 100.0%

HCD Revised Draft 2023-2031 Housing Element
A-157 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-96 Sites Inventory and Children in Married Couple Households by Tract (2021) Source: HCD AFFH Data Viewer 2.0 (2017-2021 ACS), 2023.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-158 Income
Low- and Moderate Income (LMI) areas are defined by HUD as tracts or block groups where at least 51 percent of households are in low- or moderate-income categories. As shown in Figure A-97, there are no block groups containing RHNA sites that are considered LMI areas. Nearly 95 percent of RHNA units are in block groups where 25 percent to 50 percent of households are LMI (Table A-4). Only 1.1 percent of low-income units, 1.2 percent of moderate-income units, and 15 percent of above moderate-income units are in block groups where less than 25 percent of households are LMI. The Town’s RHNA strategy distributes sites throughout tracts with variable LMI populations to the greatest extent possible given the existing conditions.

Table A-4 Distribution of RHNA Units by Population of LMI Households (2021) LMI Households
(Block Group)
Very Low Income Low Income Moderate Income
Above Moderate
Income
Total
Units Percent Units Percent Units Percent Units Percent Units Percent <25% 0 0.0% 4 1.1% 4 1.2% 96 15.0% 104 5.3%
25-50% 634 100.0% 353 98.9% 336 98.8% 544 85.0% 1867 94.7% 50-75% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
75-100% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
Total 634 100.0% 357 100.0% 340 100.0% 640 100.0% 1971 100.0%

HCD Revised Draft 2023-2031 Housing Element
A-159 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-97 Sites Inventory and LMI Households by Block Group (2015) Source: HCD AFFH Data Viewer 2.0 (HUD 2011-2015), 2023.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-160 Racially/Ethnically Concentrated Areas
As discussed above, there are no TCAC designated areas of high segregation and poverty in Los Gatos. In 2023, HCD released a new methodology with mapping to measure Racially Concentrated Areas of Affluences (RCAA). To develop the RCAA layer, staff first calculated a Location Quotient (LQ) for each California census tract representing the percentage of total white population (White Alone, Not Hispanic or Latino) for each census tract compared to the average percentage of total white population for all census tracts in a given COG region.

For example, a census tract with a LQ of 1.5 has a percentage of total white population that is 1.5 times higher than the average percentage of total white population in the given COG region. Based on HCD’s methodology, RCAAs tracts have an LQ of more than 1.25 and a median income 1.5 times higher than the COG AMI (or 1.5x the State AMI, whichever is lower). All tracts in Los Gatos are considered RCAAs; therefore, all sites selected to meet the RHNA are also in RCAA areas (Figure A-98).

HCD Revised Draft 2023-2031 Housing Element
A-161 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-98 Sites Inventory and RCAAs by Tract (2019)
Source: HCD AFFH Data Viewer 2.0 (2015-2019 ACS), 2023.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-162 Summary
While Los Gatos does not have significant segregation issues within the Town, from a broader regional perspective, providing increased lower-income housing opportunities in a high resource community like Los Gatos will help overcome Countywide and regional patterns of segregation, disparate impacts for impacted racial and ethnic groups, and foster more inclusive communities free from barriers that restrict access to opportunity.

Housing opportunities in Los Gatos are limited by the pricing of both rental and market rate units. Additionally, approximately three-quarters of the housing in Town are single-family units, further reducing housing opportunities for smaller sized rental units. Sites proposed for very low- and low-income units have been distributed evenly throughout the Town and will not result in dense areas of income segregation.

Potential Effects on Access to Opportunity
Access to Opportunity
Figure A-44 shown previously shows that nearly all Los Gatos tracts are TCAC designated highest resource areas. There is one tract in the northernmost area of the Town, also encompassing part of the City of Campbell, that is a high resource area. All sites selected to fulfill the Town’s RHNA are in highest resource tracts.

Environment
As presented in Figure A-50 above, all Los Gatos tracts scored within the lowest percentile range (most positive environmental factors) under OEHHA’s CalEnviroScreen 4.0. Therefore, all sites selected to meet the RHNA are in areas with the most positive environmental conditions.

Summary
The Town-wide distribution of housing sites will provide housing options for lower income households to choose housing that is close to amenities and services, such as parks, schools, transit, or other features (refer to Appendix D, Sites Inventory Analysis). The sites in the Sites Inventory do not saturate one specific set of income category in a specific location, rather they are spread throughout the Town. The sites in the Sites Inventory are spread throughout Town and were selected for their proximity to Town services and amenities, such as parks, high quality schools, shopping, and local Valley Transportation Authority bus transit that links to regional light rail transit.

In evaluating the selected sites from a broader, Countywide perspective, providing increased lower income housing opportunities in a high resource community such as Los Gatos will help overcome Countywide and regional patterns of disparate impacts for impacted racial and ethnic groups by providing more affordable housing choices near desirable resources such as employment and high-quality education. This will allow for more inclusive communities that are free from barriers that restrict access to opportunity.

Potential Effects on Disproportionate Housing Needs
Cost Burden
The distribution of RHNA units by percentage of cost burdened owner-occupied households at the tract-level is shown in Table A-5 and Figure A-99. Between 20 percent and 60 percent of owner-occupied households are cost burdened in all Los Gatos tracts. Nearly all RHNA units (99.2 percent) are in tracts where 40 percent to 60 percent of owners with a mortgage overpay for housing. There are only 15 units allocated towards the above moderate income RHNA in tracts where less than 40 percent of owners are cost burdened.

Renters are cost burdened at similar rates to owners in Los Gatos tracts. Like owner-occupied households, in most tracts in the Town cost burdened renters represent 20 percent to 60 percent of the total tract households.

As presented in Table A-6 and Figure A-100, 56 percent of RHNA units are in tracts where 40 percent to 60 percent of renters are cost burdened including 68 percent of very low-income units, 58.5 percent of low income units, and 63.5 percent of moderate income units, and 38.8 percent of above moderate income units. A larger

HCD Revised Draft 2023-2031 Housing Element
A-163 Appendix A JanuaryNovemberSeptember March 20232024 proportion of above moderate income units are in tracts where less than 40 percent of renters overpay for housing compared to lower and moderate income units. However, tracts with RHNA sites generally have comparable cost burdened renter populations ranging from 23 percent to 46 percent. Further, there are only 8 above moderate income units in the tract with a cost burdened renter population of 23 percent.

Table A-5 Distribution of RHNA Units by Population of Cost Burdened Owners (2021) Cost Burdened
Owners (Tract)
Very Low Income Low Income Moderate Income
Above Moderate
Income
Total
Units Percent Units Percent Units Percent Units Percent Units Percent <20% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
20-40% 0 0.0% 0 0.0% 0 0.0% 15 2.3% 15 0.8%
40-60% 634 100.0% 357 100.0% 340 100.0% 625 97.7% 1956 99.2% 60-80% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
>80% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
Total 634 100.0% 357 100.0% 340 100.0% 640 100.0% 1971 100.0% Table A-6 Distribution of RHNA Units by Population of Cost Burdened Renters (2021) Cost Burdened
Renters (Tract)
Very Low Income Low Income Moderate Income
Above Moderate
Income
Total
Units Percent Units Percent Units Percent Units Percent Units Percent <20% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
20-40% 203 32.0% 148 41.5% 124 36.5% 392 61.3% 867 44.0% 40-60% 431 68.0% 209 58.5% 216 63.5% 248 38.8% 1104 56.0% 60-80% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
>80% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
Total 634 100.0% 357 100.0% 340 100.0% 640 100.0% 1971 100.0%

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-164 Figure A-99 Sites Inventory and Cost Burdened Owner HH Population by Tract (2021) Source: HCD AFFH Data Viewer 2.0 (2017-2021 ACS), 2023.

HCD Revised Draft 2023-2031 Housing Element
A-165 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-100 Sites Inventory and Cost Burdened Renter HH Population by Tract (2021) Source: HCD AFFH Data Viewer 2.0 (2017-2021 ACS), 2023.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-166 Overcrowding
According to the HCD AFFH Data Viewer 2.0, based on the 2017-2021 ACS, there is only one tract in Los Gatos where more than 5 percent of households are overcrowded. Table A-7 and Figure A-101 show that 26 percent of RHNA units are in the northern tract where 5.1 percent of households experience overcrowding. A larger proportion of above moderate-income units are allocated in this tract (43 percent) compared to very low (18.5 percent), low (16.2 percent), and moderate income units (17.1 percent). The Town’s RHNA strategy aims to promote housing opportunities townwide, including areas with need, such as overcrowded populations. The RHNA strategy does not disproportionately place lower or moderate income RHNA units in areas where overcrowding is more prevalent.

Table A-7 Distribution of RHNA Units by Overcrowded Households (2021) Overcrowded
Households (Tract)
Very Low Income Low Income Moderate Income
Above Moderate
Income
Total
Units Percent Units Percent Units Percent Units Percent Units Percent <5% 517 81.5% 299 83.8% 282 82.9% 365 57.0% 1463 74.2%
5-10% 117 18.5% 58 16.2% 58 17.1% 275 43.0% 508 25.8%
10-15% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
15-20% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
>20% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
Total 634 100.0% 357 100.0% 340 100.0% 640 100.0% 1971 100.0%

HCD Revised Draft 2023-2031 Housing Element
A-167 Appendix A JanuaryNovemberSeptember March 20232024 Figure A-101 Sites Inventory and Overcrowded HH Population by Tract (2021) Source: HCD AFFH Data Viewer 2.0 (2017-2021 ACS), 2023.

Appendix A. AFFH Report
JanuaryNovemberSeptemberMarch 20232024 Appendix A A-168 Displacement
As shown above in Figure A-92, there are no sensitive communities at risk of displacement in Los Gatos. All tracts in the Town are considered “lower displacement risk” areas. Therefore, there are no RHNA sites in communities vulnerable to displacement.

Summary
“Disproportionate housing needs generally refers to a condition in which there are significant disparities in the proportion of members of a protected class experiencing a category of housing need when compared to the proportion of members of any other relevant groups, or the total population experiencing that category of housing need in the applicable geographic area. For purposes of this definition, categories of housing need are based on such factors as cost burden and severe cost burden, overcrowding, homelessness, and substandard housing conditions.”20
Overpayment for housing is a significant challenge for low-income residents in Town. Cost burden does vary by tenure (renter or ownership) in Los Gatos. Renters tend to experience a greater share of all forms of cost burden while owners experienced less of a cost burden. When analyzing cost burden by family size, households with five or more persons experience less cost burden compared to all other household types.

Housing cost burden in Los Gatos is lower than nearby cities, but differs by race and ethnicity and by tenure (renters or 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). This may be likely due to the relatively high cost of living in Los Gatos and the greater Bay Area region.

The quantity and Town-wide distribution of affordable housing within the Sites Inventory will concentrate on the disproportionate housing needs by providing affordable housing dispersed throughout the Town, nearby high need services and amenities.

Sites Inventory Summary
The Town’s sites inventory is shown in Figure A-102. Sites are also shown by tract and respective AFFH variables in Table A-8. The sites inventory as it relates to affirmatively furthering fair housing is discussed below.

Tract 5068.01 encompasses the central area of the Town and is bound by Highway 17 to the west, National Avenue and Camino del Cerro to the east, Blossom Hill Road to the south, and the northern Town boundary to the north. This tract is primarily zoned for Single Family Residential (R-1:8) and Restricted Commercial Highway (CH) uses. The North Forty Specific Plan is also located in this tract. Tract 5068.01 contains the largest proportion of RHNA units. More than half of units selected to meet the RHNA, including 431 very low income, 209 low income, 216 moderate income, and 241 above moderate-income units, are allocated to sites in tract 5068.01.

Like Los Gatos as a whole, this section is a highest resource area with few fair housing issues. None of the block groups in this tract are considered LMI areas and only 1.9 percent of households are overcrowded. The Town’s RHNA strategy in this area of Los Gatos promotes mixed income communities in an opportunity-rich area. Sites identified in this tract would not exacerbate conditions related to fair housing.

Tract 5068.04 is in the northeastern area of Los Gatos and is bound by Los Gatos Almaden Road to the north, Camino del Cerro to the west, Leigh Avenue to the east, and Blossom Hill Road to the south. This neighborhood is comprised predominantly of R1 zoning designations. There is only one RHNA site in this tract. Site G-1 has a capacity to accommodate eight above moderate-income units. 20 California Department of Housing and Community Development Guidance, 2021, page 39.

HCD Revised Draft 2023-2031 Housing Element
A-169 Appendix A JanuaryNovemberSeptember March 20232024 Tract 5069 is the largest tract, encompassing the area east of Los Gatos Boulevard, south of Blossom Hill Road, and north of Kennedy Road. The majority of the area in tract 5069 is zoned for Hillside Residential (HR) and Resource Conservation (RC) uses. Site H-1, with the capacity to accommodate seven above moderate-income units, is the only site that has been identified in tract 5069.

Tract 5070.04 is in southern Los Gatos and is generally bound by Los Gatos Boulevard to the east, the Town boundary and Highway 17 to the west, and Roberts Road, Shannon Road, and Saratoga Los Gatos Road to the north. Tract 5070.04 is predominantly zoned R1 east of Highway 17 and Single Family Residential Downtown (R1D) and Central Business District (C-2) west of Highway 17. A total of five RHNA sites have been identified in tract 5070.04. These sites have a total capacity of 335351 units, including 86 very low, 90 low, 66, moderate, and 93109 above moderate. Like tract in 5068.01, the RHNA strategy proposes sites with the ability to accommodate a variety of income levels in this area. This tract is a highest resource area will few fair housing issues. RHNA sites in this tract promote mixed income communities and increased housing opportunities in high resource areas.

Tract 5072.03 is west of tract 5068.01 and is bound by the northern Town boundary, Winchester Boulevard to the east, and Highway 17 to the west. Zoning designations in this section of Los Gatos include R-1, Multi-Family Residential (R-M), Residential Mobile Home Park (RMH), Controlled Manufacturing (CM), and the Albright Specific Plan. There are 508 RHNA units (117 very low, 58 low, 58 moderate, and 275 above moderate income) allocated in this section of the Town over five sites. While this is a highest resource area, it does have larger nonWhite, LMI household, and overcrowded populations compared to other areas of the Town. However, the RHNA strategy does not allocate sites accommodating the lower or moderate income RHNA in this tract alone. Over half of the units identified in this tract are allocated towards the above moderate income RHNA. Further, sites accommodating lower and moderate income units are distributed throughout other areas of the Town.

Summary
The Town’s RHNA strategy identifies sites throughout the Town, serving various existing populations, to the greatest extent possible given the overall character of Los Gatos. The RHNA strategy ensures sites with the capacity to accommodate lower and moderate income units are not concentrated in one area of the Town alone.

All sites identified promote the increase of housing units, including affordable housing, in high resource areas with accessible services and amenities. The sites inventory, in conjunction with programs and supplemental AFFH actions outlined in this Housing Element, aims to foster inclusive communities through promoting affordable housing in resource-rich areas, like Los Gatos. The Town’s sites inventory does not exacerbate negative fair housing conditions in Los Gatos.

Appendix A. AFFH Report
JanuaryNovember September March 20232024 Appendix A A-170 Table A-8 Sites Inventory by Tract and AFFH Variable
Tract/Site #
# of HHs
in Tract
Total
Capacity
(Units)
Income Distribution (Units)
% Non-White % LMI HHs*
TCAC Opp.

Area
Overpay
Renter
OverVery Low Low Moderate crowded HHs
Above
Moderate
Tract 5068.01 2,064 1,097 431 209 216 241 27.5% 37.0-47.0% Highest
Resource

42.3% 1.9%
C-1 48 19 9 10 10
C-2 86 35 17 17 17
C-3 33 13 6 7 7
C-4 19 7 4 4 4
C-5 24 9 5 5 5
C-7 106 42 21 21 22
C-8 79 31 16 16 16
C-9 134 54 26 26 28
D-1 452 184 89 92 87
D-2 37 16 7 7 7
D-3 7 0 0 0 7
D-4 12 0 0 0 12
D-5 23 10 4 5 4
D-6 27 11 5 6 5
D-7 10 0 0 0 10
Tract 5068.04 1,612 8 0 0 0 8 35.9% 5.0%
Highest
Resource

23.4% 0.0%
G-1 8 0 0 0 8
Tract 5069 2,856 7 0 0 0 7 34.1% 21.0%
Highest
Resource

45.9% 0.0%
H-1 7 0 0 0 7
Tract 5070.04 1,753 351335 86 90 66 10993 17.4% 15.0-26.0% Highest
Resource

33.4% 0.0%
A-2 16 0 0 0 16

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A-171 Appendix A JanuaryNovemberSeptember March 20232024 Tract/Site #
# of HHs
in Tract
Total
Capacity
(Units)
Income Distribution (Units)
% Non-White % LMI HHs*
TCAC Opp.

Area
Overpay
Renter
OverVery Low Low Moderate crowded HHs
Above
Moderate
A-3 7 0 0 0 7
B-1 262 86 86 62 28
C-6 6 0 0 0 6
I-1 60 0 4 4 52
Tract 5072.03 1,229 508 117 58 58 275 40.8% 35.0%
Highest
Resource

37.7% 5.1%
E-1 121 0 0 0 121
E-2 26 0 0 0 26
E-3 69 0 0 0 69
F-1 220 88 44 44 44
F-2 72 29 14 14 15
Total 1,971 634 357 340 640
* LMI household percentage is presented at the block group level and may be shown as a range as sites may be located in different block groups within the same tract.

Appendix A. AFFH Report
JanuaryNovember September March 20232024 Appendix A A-172 Figure A-102 Sites Inventory

Housing Needs Assessment B

APPENDIX

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 B.1 Introduction
This appendix of the Housing Element describes existing housing needs and conditions in the Town of Los Gatos.

The analysis in this section primarily utilizes data compiled by Association of Bay Area Governments/ Metropolitan Transportation Commission (ABAG/MTC) in the “Housing Needs Data Report: Los Gatos” (ABAG/MTC, Baird + Driskell Community Planning, April 2, 2021). This data packet was approved by the California Department of Housing and Community Development (HCD).

Overview of Bay Area Housing
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 a place to call home. While the number of people drawn to the region over the past 30 years has steadily increased, housing production has stalled, contributing to the housing shortage that communities are experiencing today. In many communities, this has resulted in residents being priced out, increased traffic congestion caused by longer commutes, and fewer people across incomes being able to purchase homes or meet surging rents.

The 2023-2031 Housing Element Update provides a roadmap for how to meet growth and housing challenges.

As required by the State, the Housing Element identifies what the existing housing conditions and community needs are, reiterates goals, and creates a plan for more housing.

Summary of Key Facts
 Population – Generally, the population of the Bay Area continues to grow because of new births (natural growth) and 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 growth rate of the Bay Area.  Age – In 2019, 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.
 Race/Ethnicity – In 2020, 72.3 percent of the Town of Los Gatos 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 whole1.  Employment – The Town of Los Gatos 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

2.9 percent. 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 of Los Gatos has increased from 1.32 jobs per household in 2002 to 1.59 in 2018.
 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 the Town of Los Gatos increased 4.5 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 period2.
1 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.
2 According to HCD Annual Progress Report Dashboard (as of September 20, 2021).

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B-2 Appendix B JanuaryNovemberSeptember March 20232024
 Home Prices – A diversity of homes at all income levels would create opportunities for all 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 the Town of Los Gatos was $2,270 in 2019. Rental prices increased by 60.9 percent from 2009 to 2019. To rent a typical apartment without cost burden, a household would need to make $90,960 per year 3.  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, 60 percent of homes in the Town of Los Gatos were single-family detached, 13 percent were single-family attached, 9 percent were small multi-family (two to four units), and 18 percent were medium or large multi-family (five or more units). Between 2010 and 2020, the number of singlefamily units increased more than multi-family units. Los Gatos has a higher portion of detached singlefamily homes than other jurisdictions in the region.  Housing Demand – The Town is populated with a higher share of high-income earners (65% greater than 100% of AMI) than the rest of the county, therefore, housing is built for these higher income and amenity levels. Without goals, policies and programs that specifically address the need to build “affordable housing” targeting incomes less than 100% of AMI (not above greater than 100% AMI), it is highly unlikely developers will voluntarily build housing for low and very-low-income levels.  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 the Town of Los Gatos, 20 percent of households spend 30 percent to 50 percent of their income on housing, while 16 percent of households are severely cost burdened and use the majority of their income for housing.  Displacement/Gentrification – According to research from the University of California (UC), Berkeley no households in the Town of Los Gatos live in neighborhoods that are susceptible to or experiencing displacement, and none live in areas at risk of or undergoing gentrification. All households in the Town live in neighborhoods where low-income households are likely excluded due to prohibitive housing costs.  Neighborhood – All residents in Los Gatos live in neighborhoods identified as “Highest Resource” or “High Resource” areas by State-commissioned research, while no residents 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 factors4.  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, 9 percent of residents have a disability (physical, developmental, etc.), and may require accessible housing. Additionally, 6 percent of Los Gatos households are larger households with five or more people and likely need larger housing units with three bedrooms or more. 8.2 percent of households are female-headed families, which are often at greater risk of housing insecurity.
3 Note that contract rents may differ significantly from, and often being lower than, current listing prices. 4 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.

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 B.2 Population, Employment, and Household
Characteristics
Population
The Bay Area is the fifth-largest metropolitan area in the nation and has seen a steady increase in population since 1990, except for a dip during the Great Recession. Many towns and cities in the region have experienced significant growth in jobs and population. While these trends have led to a corresponding increase in demand for housing across the region, the regional production of housing has largely not kept pace with job and population growth.

According to the data, the population of the Town of Los Gatos was estimated to be 31,439 in 2020. The population of Los Gatos makes up 1.6 percent of Santa Clara County 5. In 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 B-1 shows population growth trends for the Town of Los Gatos, Santa Clara County, and the Bay Area as a whole.

Table B-1 Population Growth Trends
Geography 1990 1995 2000 2005 2010 2015 2020
Town of 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.

Note: Universe: Total population; Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-01.

Since 2000, the Town of Los Gatos population has increased by approximately 10 percent, which is below the rate for the region as a whole, at 14.8 percent. From 1990 to 2000, the population increased by 4.5 percent.

During the first decade of the 2000’s the population increased by 2.9 percent. In the most recent decade, the population increased by 6.9 percent. Figure B-1 shows population growth trends in percentages.

In 2019 the Town of Los Gatos annexed 24 urban islands totaling 116.1 acres. The islands were comprised of approximately 308 single-family residences and the staff report assumed 2.2 persons per household for an estimated increase in population of 678.

5 To compare the rate of growth across various geographic scales, Figure B-1 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 (i.e., percent change) in each of these geographies relative to their populations in 1990.

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B-2 Appendix B JanuaryNovemberSeptember March 20232024
Figure B-1 Population Growth Trends
Source: California Department of Finance, E-5 series.

Note: The data shown on the graph represents population for the jurisdiction, county, and region indexed to the population in the first year shown. The data points represent the relative population growth in each of these geographies relative to their populations in that year. For some jurisdictions, a break may appear at the end of each decade (1999, 2009) as estimates are compared to census counts. DOF uses the decennial census to benchmark subsequent population estimates. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-01 Age
The distribution of age groups in a community 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 needed.

In the Town of Los Gatos, the median age in 2000 was approximately 41 years. By 2019, the median age increased to approximately 47 years. The cohorts age 25 to 34 and age 35 to 44 decreased between 2000 and 2019, while all age cohorts 55 and above increased during the same time period. Figure B-2 shows population by age for the years 2000, 2010, and 2019 for the Town of Los Gatos.

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Figure B-2 Los Gatos Population by Age, 2000-2019
Source: U.S. Census Bureau, Census 2000 SF1, Table P12; U.S. Census Bureau, Census 2010 SF1, Table P12; U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B01001. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP04.

Note: Universe: Total population.

Looking at the senior and youth population by race can add an additional layer of understanding, as families and seniors of color are even more likely to experience challenges finding affordable housing. People of color 6 make up 13.4 percent of seniors and 23.7 percent of youth under 18. Figure B-3 shows population age by race for the Town of Los Gatos.
6 Here, all non-white racial groups are counted.

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Figure B-3 Los Gatos Population Age by Race
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B01001(A-G). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table SEN-02.

Notes: Universe: Total population. In the sources for this table, the Census Bureau does not disaggregate racial groups by Hispanic/Latinx ethnicity, and an overlapping category of Hispanic / non-Hispanic groups has not been shown to avoid double counting in the stacked bar chart.

Race and Ethnicity
Understanding the racial makeup of the Town 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 today7.

Since 2000, the percentage of residents in the Town of Los Gatos identifying as White, Non-Hispanic has decreased by 13.3 percentage points, with this 2019 population standing at 22,231. 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. Figure B-4 shows population for the Town of Los Gatos by race for 2000, 2010, and 2019. 7 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.

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Figure B-4 Los Gatos Population by Race, 2000-2019
Source: U.S. Census Bureau, Census 2000, Table P004; U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B03002. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-02.

Notes: Universe: Total population. Data for 2019 represents 2015-2019 ACS estimates. The Census Bureau defines Hispanic/Latinx ethnicity separate from racial categories. For the purposes of this graph, the “Hispanic or Latinx” racial/ethnic group represents those who identify as having Hispanic/Latinx ethnicity and may also be members of any racial group. All other racial categories on this graph represent those who identify with that racial category and do not identify with Hispanic/Latinx ethnicity.

Employment Trends
Balance of Jobs and Workers
A town houses employed residents who either work in the community where they live or work elsewhere in the region. Conversely, a town may have job sites that employ residents from the same town, but more often employ workers that commute from outside of it. Smaller towns typically will have more employed residents than jobs and export workers, while larger towns tend to have a surplus of jobs and import workers. To some extent the regional transportation system (bus system, for example) is set up for this flow of workers to the region’s core job centers. At the same time, as the housing affordability crisis has illustrated, local imbalances may be severe, where local jobs and worker populations are out of sync at a sub-regional scale. One measure of this is the relationship between workers and jobs. A town with a surplus of workers “exports” workers to other parts of the region, while a town with a surplus of jobs must conversely “import” them. Between 2002 and 2018, the number of jobs in the Town of Los Gatos increased by 23.8 percent. Figure 3-5 shows jobs in the Town of Los Gatos between 2002 and 2018.

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B-2 Appendix B JanuaryNovemberSeptember March 20232024
Figure B-5 Los Gatos Jobs in a Jurisdiction
Source: U.S. Census Bureau, Longitudinal Employer-Household Dynamics, Workplace Area Characteristics (WAC) files, 2002-2018. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-11.

Notes: Universe: Jobs from unemployment insurance-covered employment (private, state and local government) plus United States Office of Personnel Management-sourced Federal employment. The data is tabulated by place of work, regardless of where a worker lives. The source data is provided at the census block level. These are cross walked to jurisdictions and summarized.

The figure below shows the balance when comparing jobs to workers, broken down by different wage groups, offering additional insight into local dynamics. A community may offer employment for relatively low-income workers but have relatively few housing options for those workers. Conversely, it may house residents who are low wage workers, but offer few employment opportunities for them. Such relationships may cast extra light on potentially pent-up demand for housing in particular price categories. A relative surplus of jobs relative to residents in a given wage category suggests the need to import those workers, while conversely, surpluses of workers mean the community will export those workers to other jurisdictions. Such flows are not inherently bad, though over time, sub-regional imbalances may appear. The Town has more jobs than residents in wage categories below $75,000 per year. At the high end of the wage spectrum (i.e., wages over $75,000 per year), the Town has more high-wage residents than high-wage jobs8. Figure B-6 shows workers by earnings, place of residence, and place of work within the jurisdiction of the Town of Los Gatos. 8 The source table is top coded at $75,000, precluding more fine-grained analysis at the higher end of the wage spectrum.

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Figure B-6 Workers by Earnings, by Los Gatos Jurisdiction as Place of Work and Place of Residence Source: U.S. Census Bureau, American Community Survey 5-Year Data 2015-2019, B08119, B08519. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-10.

Notes: Universe: Los Gatos Workers 16 years and over with earnings.

The next diagram shows the ratio of jobs to workers, by wage group. A value of 1.00 means that the Town has the same number of jobs in a wage group as it has resident workers, in principle, a balance. Values above 1.00 indicate a jurisdiction will need to import workers for jobs in a given wage group. Figure B-7 shows jobs to worker ratios for the Town Los Gatos.

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B-2 Appendix B JanuaryNovemberSeptember March 20232024
Figure B-7 Los Gatos Jobs-Worker Ratios, By Wage Group
Source: U.S. Census Bureau, Longitudinal Employer-Household Dynamics, Workplace Area Characteristics (WAC) files (Jobs); Residence Area Characteristics (RAC) files (Employed Residents), 2010-2018. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-14.

Notes: Universe: Jobs in a jurisdiction from unemployment insurance-covered employment (private, state and local government) plus United States Office of Personnel Management-sourced Federal employment. The ratio compares job counts by wage group from two tabulations of LEHD data: Counts by place of work relative to counts by place of residence. See text for details.

Such balances between jobs and workers may directly influence the housing demand in a community. New jobs may draw new residents, and when there is high demand for housing relative to supply, many workers may be unable to afford to live where they work, particularly where job growth has been in relatively lower wage jobs. The Town is a “net importer of workers” at the low-wage group, while at the high-wage group the Town is “exporting workers.” This dynamic not only means many workers will need to prepare for long commutes and time spent on the road, but in the aggregate, it contributes to traffic congestion and time lost for all road users.

If there are more jobs than employed residents, it means a community is relatively jobs-rich, typically also with a high jobs-per-employed-resident ratio. Therefore, bringing housing into the measure, the jobs per employed resident ratio in the Town of Los Gatos has increased from 1.32 in 2002, to 1.59 jobs per employed resident in 2018. In short, the Town of Los Gatos is a net importer of workers. Figure B-8 shows the Town of Los Gatos jobs per household ratio.

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Figure B-8 Jobs-Household Ratio
Source: U.S. Census Bureau, Longitudinal Employer-Household Dynamics, Workplace Area Characteristics (WAC) files (Jobs), 2002-2018; California Department of Finance, E-5 (Households). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-13.

Notes: Universe: Jobs in a jurisdiction from unemployment insurance-covered employment (private, state and local government) plus United States Office of Personnel Management-sourced Federal employment; households in a jurisdiction. The data is tabulated by place of work, regardless of where a worker lives. The source data is provided at the census block level. These are cross walked to jurisdictions and summarized. The ratio compares place of work wage and salary jobs with households, or occupied housing units. A similar measure is the ratio of jobs to housing units. However, this jobshousehold ratio serves to compare the number of jobs in a jurisdiction to the number of housing units that are actually occupied. The difference between a jurisdiction’s jobs-housing ratio and jobs-household ratio will be most pronounced in jurisdictions with high vacancy rates, a high rate of units used for seasonal use, or a high rate of units used as short-term rentals.

Sector Composition
In terms of sectoral composition, the largest industry in which the Town of Los Gatos residents work is Financial and Professional Services, and the largest sector in which Santa Clara residents work is Health and Educational Services. For the Bay Area as a whole, the Health and Educational Services industry employs the most workers.

Figure B-9 shows resident employment by industry.

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B-2 Appendix B JanuaryNovemberSeptember March 20232024
Figure B-9 Resident Employment by Industry
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table C24030. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-06.

Notes: Universe: Civilian employed population age 16 years and over. The data displayed shows the industries in which jurisdiction residents work, regardless of the location where those residents are employed (whether within the jurisdiction or not). Categories are derived from the following source tables: Agriculture & Natural Resources: C24030_003E, C24030_030E; Construction: C24030_006E, C24030_033E; Manufacturing, Wholesale & Transportation: C24030_007E, C24030_034E, C24030_008E, C24030_035E, C24030_010E, C24030_037E; Retail: C24030_009E, C24030_036E; Information: C24030_013E, C24030_040E; Financial & Professional Services:

C24030_014E, C24030_041E, C24030_017E, C24030_044E; Health & Educational Services: C24030_021E, C24030_024E, C24030_048E, C24030_051E; Other: C24030_027E, C24030_054E, C24030_028E, C24030_055E.

Unemployment
In the Town of Los Gatos, there was a 2.9 percentage point decrease in the unemployment rate between January 2010 and January 2021. Jurisdictions throughout the region experienced a sharp rise in unemployment in 2020 due to impacts related to the COVID-19 pandemic, though with a general improvement and recovery in the later months of 2020. Figure B-10 shows the unemployment rates over the last decade for the Town of Los Gatos, Santa Clara County, and the Bay Area as a whole.

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Figure B-10 Los Gatos Unemployment Rate
Source: California Employment Development Department, Local Area Unemployment Statistics (LAUS), Sub-county areas monthly updates, 2010-2021. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-15.

Notes: Universe: Civilian noninstitutional population ages 16 and older. Unemployment rates for the jurisdiction level is derived from larger-geography estimates. This method assumes that the rates of change in employment and unemployment are exactly the same in each sub-county area as at the county level. If this assumption is not true for a specific sub-county area, then the estimates for that area may not be representative of the current economic conditions. Since this assumption is untested, caution should be employed when using these data. Only not seasonally-adjusted labor force (unemployment rates) data are developed for cities and CDPs.

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 state9.

In the Town of Los Gatos, 65 percent of households make more than 100 percent of the Area Median Income (AMI)10, compared to 8.6 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 the equivalent to the 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, and healthcare professionals, can fall into lower AMI categories due to relatively stagnant wages in many industries. Figure B-11 shows households by income level. 9 Bohn, S.et al. 2020. Income Inequality and Economic Opportunity in California. Public Policy Institute of California. 10 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), S1anta Rosa Metro

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B-2 Appendix B JanuaryNovemberSeptember March 20232024
Figure B-11 Households by Household Income Level
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table ELI-01.

Notes: Universe: Occupied housing units. 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. The data that is reported for the Bay Area is not based on a regional AMI but instead refers to the regional total of households in an income group relative to the AMI for the county where that household is located. Local jurisdictions are required to provide an estimate for their projected extremely low-income households (0-30 percent AMI) in their Housing Elements.

HCD’s official Housing Element guidance notes that jurisdictions can use their RHNA for very low-income households (those making 0-50 percent AMI) to calculate their projected extremely low-income households. As Bay Area jurisdictions have not yet received their final RHNA numbers, this document does not contain the required data point of projected extremely low-income households. The report portion of the housing data needs packet contains more specific guidance for how local staff can calculate an estimate for projected extremely low-income households once jurisdictions receive their 6th cycle RHNA numbers. 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.

Throughout the region, there are disparities between the incomes of homeowners and renters. Typically, the number of low-income renters greatly outpaces the amount of housing available that is affordable for these households. In the Town of Los Gatos, the largest proportion of renters falls in the Greater than 100 percent of AMI group, while the largest proportion of homeowners are found in the Greater than 100 percent of AMI group.

Figure B-12 shows household income by tenure.

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Figure B-12 Los Gatos Household Income Level by Tenure
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-21.

Notes: Universe: Occupied housing units. 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.

Currently, people of color are more likely to experience poverty and financial instability as a result of Federal, State, and local housing policies that have historically excluded them from the same opportunities extended to White residents11. These economic disparities also leave communities of color at higher risk for housing insecurity, displacement, or homelessness.

In the Town of 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 B-13 shows poverty status by race.
11 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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Figure B-13 Los Gatos Poverty Status by Race
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B17001(A-I). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table ELI-03.

Notes: Universe: Population for whom poverty status is determined. The Census Bureau uses a federally defined poverty threshold that remains constant throughout the country and does not correspond to Area Median Income. For this table, the Census Bureau does not disaggregate racial groups by Hispanic/Latinx ethnicity. However, data for the white racial group is also reported for white householders who are not Hispanic/Latinx. Since residents who identify as white and Hispanic/Latinx may have very different experiences within the housing market and the economy from those who identify as white and non-Hispanic/Latinx, data for multiple white sub-groups are reported here. The racial/ethnic groups reported in this table are not all mutually exclusive. Therefore, the data should not be summed as the sum exceeds the population for whom poverty status is determined for this jurisdiction.

However, all groups labelled “Hispanic and Non-Hispanic” are mutually exclusive, and the sum of the data for these groups is equivalent to the population for whom poverty status is determined.

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 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 or city and region. Generally, renters may be displaced more quickly if prices increase.

In the Town of Los Gatos as of 2019, there are a total of 12,083 housing units, and fewer residents rent than own their homes: 35.1 percent versus 64.9 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. Figure B-14 shows housing tenure for Los Gatos, Santa Clara County, and the Bay Area as a whole.

Figure B-14 Housing Tenure
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25003. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-16.

Notes: Universe: Occupied housing units.

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 limited 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.12 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. Notably, recent changes to State law require local jurisdictions to examine these dynamics and other fair housing issues when updating their Housing Elements. Figure B-15 shows housing tenure by the race of the householder. 12 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.

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Figure B-15 Los Gatos Housing Tenure by Race of Householder Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25003(A-I). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-20.

Notes: Universe: Occupied housing units. For this table, the Census Bureau does not disaggregate racial groups by Hispanic/Latinx ethnicity. However, data for the white racial group is also reported for white householders who are not Hispanic/Latinx. Since residents who identify as white and Hispanic/Latinx may have very different experiences within the housing market and the economy from those who identify as white and nonHispanic/Latinx, data for multiple white sub-groups are reported here. The racial/ethnic groups reported in this table are not all mutually exclusive.

Therefore, the data should not be summed as the sum exceeds the total number of occupied housing units for this jurisdiction. However, all groups labeled “Hispanic and Non-Hispanic” are mutually exclusive, and the sum of the data for these groups is equivalent to the total number of occupied housing units.

The age of residents who rent or own their home can also signal the housing challenges a community is experiencing. Younger households tend to rent and may struggle to buy a first home in the Bay Area due to high housing costs. At the same time, senior homeowners seeking to downsize may have limited options in an expensive housing market.

In the Town of Los Gatos, 77.2 percent of householders between the ages of 25 and 34 are renters, and 36.4 percent of householders over 85 are renters. Figure B-16 shows housing tenure by age.

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Figure B-16 Los Gatos Housing Tenure by Age
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25007. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-18.

Notes: Universe: Occupied housing units.

In many communities, homeownership rates for households in single-family homes are substantially higher than the rates for households in multi-family housing. In the Town of Los Gatos, 86.2 percent of households in detached single-family homes are homeowners, while 13.2 percent of households in multi-family housing are homeowners. Figure B-17 shows housing tenure by housing type.

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Figure B-17 Los Gatos Housing Tenure by Housing Type
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25032. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-22.

Notes: Universe: Occupied housing units.

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Displacement
Because of increasing housing prices, displacement is a major concern in the Bay Area. Displacement has the most 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. They find that in the Town of 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. The University of California, Berkeley, estimates that all households in the Town of Los Gatos live in neighborhoods where low-income households are likely to be excluded due to prohibitive housing costs13. Figure B-18 shows household displacement risk and tenure.

Figure B-18 Los Gatos Households by Displacement Risk and Tenure Source: Urban Displacement Project for classification, American Community Survey 5-Year Data (2015-2019), Table B25003 for tenure.

Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-25.

Notes: Universe: Households. Displacement data is available at the census tract level. Staff aggregated tracts up to jurisdiction level using census 2010 population weights, assigning a tract to jurisdiction in proportion to block level population weights. Total household count may differ slightly from counts in other tables sourced from jurisdiction level sources. Categories are combined as follows for simplicity: At risk of or Experiencing Exclusion: At Risk of Becoming Exclusive; Becoming Exclusive; Stable/Advanced Exclusive At risk of or Experiencing Gentrification: At Risk of Gentrification; Early/Ongoing Gentrification; Advanced Gentrification Stable Moderate/Mixed Income: Stable Moderate/Mixed Income Susceptible to or Experiencing Displacement:

Low-Income/Susceptible to Displacement; Ongoing Displacement Other: High Student Population; Unavailable or Unreliable Data. 13 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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B.3 Housing Stock Characteristics
Housing Types, Year Built, Vacancy, and Permits
In recent years, most housing produced in the region and across the State consisted of single-family homes and larger multi-unit buildings. However, some households are increasingly interested in “missing middle housing” or “Small Multi-Unit Housing, including duplexes, triplexes, townhomes, cottage clusters, and accessory dwelling units. These housing types may open up more options across incomes and tenure, from young households seeking homeownership options to seniors looking to downsize and age-in-place.

The housing stock of the Town of Los Gatos in 2020 was made up of 60 percent Single-Family Home: Detached, 13 percent Single-Family Home: Attached, 9 percent Multi-family Housing: Two to Four Units, 18 percent Multifamily Housing: Five-Plus Units, and 0.5 percent Mobile Homes. In Los Gatos, the housing type that experienced the most growth between 2010 and 2020 was Single-Family Home: Detached. Figure B-19 shows housing type trends in Los Gatos for 2010 and 2020.

Figure B-19 Los Gatos Housing Type Trends
Source: California Department of Finance, E-5 series. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-01.

Note: Universe: Housing units.

Production has not kept up with housing demand for several decades in the Bay Area, as the total number of units built and available has not yet come close to meeting the population and job growth experienced throughout the region. In the Town of Los Gatos, the largest proportion of the housing stock was Built 1960 to 1979, with 6,630 units constructed during this period. Since 2010, 2.6 percent of the current housing stock was built, which is 342 units (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25034). Figure B-20 shows housing units by the year built.

59.6%

13.0%

9.0%

17.9%

0.5%

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Figure B-20 Los Gatos Housing Units by Year Structure Built Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25034. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-04.

Note: Universe: Housing units.

Throughout the Bay Area, vacancies make up 2.6 percent of the total housing units, with homes listed for rent, units used for Recreational or Occasional Use, and units not otherwise classified (Other Vacant) making up the majority of vacancies. The Census Bureau classifies a unit as vacant if no one is occupying it when census interviewers are conducting the American Community Survey or Decennial Census. Vacant units classified as For Recreational or Occasional Use are those that are held for short-term periods of use throughout the year.

Accordingly, vacation rentals and short-term rentals like Airbnb are likely to fall in this category. The Census Bureau classifies units as Other Vacant if they are vacant due to foreclosure, personal/family reasons, legal proceedings, repairs/renovations, abandonment, preparation for being rented or sold, or vacant for an extended absence for reasons such as a work assignment, military duty, or incarceration14. In a region with a thriving economy and housing market like the Bay Area, units being renovated/repaired and prepared for rental or sale are likely to represent a large portion of the Other Vacant category. Additionally, the need for seismic retrofitting in older housing stock could also influence the proportion of Other Vacant units in some jurisdictions 15.

Vacant units make up 7.5 percent of the overall housing stock in the Town of Los Gatos. The rental vacancy stands at 8.2 percent, while the ownership vacancy rate is 0.4 percent. Of the vacant units in the Town of Los Gatos, the most common type of vacancy is Other Vacant, which represents almost half of all vacant rental units16. Figure B-21 shows vacant units by type.
14 For more information, see pages 3 through 6 of this list of definitions prepared by the Census Bureau:
https://www.census.gov/housing/hvs/definitions.pdf.
15 See Dow, P. (2018). Unpacking the Growth in San Francisco’s Vacant Housing Stock: Client Report for the San Francisco Planning Department. University of California, Berkeley.
16 The vacancy-rates-by-tenure is for a smaller universe than the total vacancy rate first reported, which in principle includes the full stock (7.5 percent).

The vacancy by tenure counts are rates relative to the rental stock (occupied and vacant) and ownership stock (occupied and vacant) but exclude a significant number of vacancy categories, including the numerically significant other vacant.

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Figure B-21 Los Gatos Vacant Units by Type
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25004. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-03.

Note: Universe: Vacant housing units.

Between 2015 and 2020, 502 housing units were issued building permits in the Town of Los Gatos. Of those, approximately percent were for above moderate-income housing, approximately percent were for moderateincome housing, and approximately 1.0 percent were for low-income, and approximately 17.0 percent were for very low-income housing. Table B-2 shows residential building permits issued by the Town of Los Gatos by income group.

Table B-2 Los Gatos, Residential Building Permits by Income Group, 2015 to 2020 Income Group Number Percent
Very Low-Income Permits 49 revise all below
Low-Income Permits 3
Moderate-Income Permits 119
Above Moderate-Income Permits 331
Total 502 100.0%
Source: California Department of Housing and Community Development (HCD), 5th Cycle Annual Progress Report Permit Summary (2020). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-11.

Note: Universe: Housing permits issued between 2015 and 2021. Notes: HCD uses the following definitions for the four income categories:

Very Low Income: units affordable to households making less than 50 percent of the Area Median Income for the county in which the jurisdiction is located. Low Income: units affordable to households making between 50 percent and 80 percent of the Area Median Income for the county in which the jurisdiction is located. Moderate Income: units affordable to households making between 80 percent and 120 percent of the Area Median Income for the county in which the jurisdiction is located. Above Moderate Income: units affordable to households making above 120 percent of the Area Median Income for the county in which the jurisdiction is located.

Assisted Housing Developments At-Risk of Conversion
While there is a need to produce new affordable housing units, ensuring that the existing affordable housing stock remains affordable is also important. Additionally, it is typically faster and less expensive to preserve currently affordable units that are at risk of converting to market-rate than it is to build new affordable housing.

The data in the table below comes from the California Housing Partnership’s Preservation Database, the State’s most comprehensive source of information on subsidized affordable housing at risk of losing its affordable status

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 and converting to market-rate housing17. According to the data, there are 169 assisted units in the Town of Los Gatos. Of these units, none were at high risk or very high risk of conversion. Table B-3 summarizes assisted units at risk in the Town of Los Gatos.

Table B-3 Assisted Units at Potential Risk of Conversion Income Los Gatos Santa Clara
County Bay Area
Low-Income Units 169 28,001 110,177
Moderate-Income Units 0 1,471 3,375
High-Income Units 0 422 1,854
Very High-Income Units 0 270 1,053
Total 169 30,164 116,459
Source: California Housing Partnership, Preservation Database (2020). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table RISK01.

Note: Universe: HUD, Low-Income Housing Tax Credit (LIHTC), USDA, and CalHFA projects. Subsidized or assisted developments that do not have one of the aforementioned financing sources may not be included. While California Housing Partnership’s Preservation Database is the state’s most comprehensive source of information on subsidized affordable housing at risk of losing its affordable status and converting to market-rate housing, this database does not include all deed-restricted affordable units in the state. Consequently, there may be at-risk assisted units in a jurisdiction that are not captured in this data table. Per HCD guidance, local jurisdictions must also list the specific affordable housing developments at-risk of converting to market rate uses. This document provides aggregate numbers of at risk units for each jurisdiction, but local planning staff should contact Danielle Mazzella with the California Housing Partnership at [email protected] to obtain a list of affordable properties that fall under this designation. California Housing Partnership uses the following categories for assisted housing developments in its database: Very-High Risk: affordable homes that are at-risk of converting to market rate within the next year that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable non-profit, mission-driven developer. High Risk: affordable homes that are at-risk of converting to market rate in the next 1-5 years that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable non-profit, mission-driven developer.

Moderate Risk: affordable homes that are at-risk of converting to market rate in the next 5-10 years that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable non-profit, mission-driven developer. Low Risk: affordable homes that are at-risk of converting to market rate in 10+ years and/or are owned by a large/stable non-profit, mission-driven developer.

Substandard Housing
Housing costs in the region are among the highest in the country. In general, substandard housing is not an issue in Los Gatos. Between the years of 2015-2023 there were 4,311 code violations with only 15 cases of substandard housing conditions. 0.3 percent of code enforcement violations were substandard housing cases.

Most of the substandard conditions were related to mental health issues involving hoarding and are owner occupied. The 15 cases are spread throughout the Town limits and are not concentrated in one part of Town.

The Town of Los Gatos has one full time Code Compliance Officer and is reactive (complaint based) in regard to enforcement. Based on the data and input from the Code Compliance Officer, it is estimated that there are approximately 11 units in need of rehabilitation and/or replacement. Through Implementation Programs N and AJ, it is a goal of the 2023-2031 Housing Element to assist 10 low-income households with needed household repairs.
17 This database does not include all deed-restricted affordable units in the state, so there may be at-risk assisted units in a jurisdiction that are not captured in this data table.

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Year 2015-2023 Los Gatos Substandard Housing Code Violations 2023 Occupied rental - gutters in disrepair, and mold in interior rooms. 2022 Owner occupied residence - hole in roof, junk accumulation, and unregistered vehicles*. 2021 Occupied multi-family apartment - carport ceiling repair, trash can area sanitation, and deckingrailing repair/replace. 2020 Unoccupied storage for hoarder-tarps covering holes in roof, unregistered vehicles, and nonfunctioning gutters*.
2020 Occupied residence - tall grass, inoperable vehicles, residence in disrepair, and rodent harborage.
2019 Unoccupied residence - tall grass, un-secured, residence in disrepair, rodent harborage, and demolished by owner.
2017 Owner occupied residence - storage in the side yard, felled trees, unregistered vehicles, parking on dirt, RV used as home in rear yard, and storage of household items in carport*. 2015 Owner occupied residence - hoarding conditions, junk accumulation, inoperable vehicles, and trailer in front yard*.
2015 Owner occupied residence - rodent harborage, trash/rubbish, and unregistered vehicles*. 2015 Unoccupied storage for hoarder - weeds, unregistered vehicles, rodent harborage, and junk accumulation*.
2015 Owner occupied residence - junk accumulation, and structures in disrepair*. 2015 Owner occupied residence and rental - inoperative vehicles parked in front yard, and junk accumulation*
2015 Occupied rental - felled trees, gutters in disrepair, broken window, front door kicked in, chipping and peeling paint.
2015 Unoccupied residence - house deemed unfit for human habitation due to the lack of safe power, water, heat, and smoke alarms.
2015 Occupied multi-family apartment - plumbing leaks, non-functioning furnace, substandard decking, non-functioning fire extinguishers, and unpermitted work.

Source: Town of Los Gatos Code Enforcement, Community Development Department Note: *Denotes hoarding conditions
The Census Bureau data included in the graph below gives a sense of some of the substandard conditions that may be present in Los Gatos. For example, 4.1 percent of renters in Los Gatos reported lacking a kitchen and 1.4 percent of renters lack plumbing, compared to 0.4 percent of owners who lack a kitchen and 0.6 percent of owners who lack plumbing. Figure B-22 shows substandard housing issues in Los Gatos.

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Figure B-22 Los Gatos Substandard Housing Issues
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25053, Table B25043, Table B25049 Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-06.

Note: Universe: Occupied housing units. Per HCD guidance, this data should be supplemented by local estimates of units needing to be rehabilitated or replaced based on recent windshield surveys, local building department data, knowledgeable builders/developers in the community, or nonprofit housing developers or organizations.

Project Sentinel assists individuals with housing problems such as discrimination and rental issues including repairs and provides information and counseling regarding rights and responsibilities under California tenant landlord law. During the calendar year of 2022, Project Sentinel received a total of 58 inquiries for Los Gatos, with 35 of the inquiries resulting in providing information to the caller and a referral. The remaining 23 inquiries resulted in cases, of which only three were related to housing maintenance and repairs. This information further highlights the limited extent of substandard housing conditions in the Town.

Home and Rent Values
Home prices reflect a complex mix of supply and demand factors, including an area’s demographic profile, labor market, prevailing wages, and job outlook, coupled with land and construction costs. In the Bay Area, the costs of housing have long been among the highest in the nation.

The typical home value in Los Gatos was estimated at $2,109,040 in December of 2020, per data from Zillow.

The largest proportion of homes were valued in excess of $2 million. By comparison, the typical home value is $1,290,970 in Santa Clara County and $1,077,230 in the Bay Area, with the largest share of units valued $1 million to $1.5 million (county) and $500 thousand to $750 thousand (region). Figure B-23 shows home values of owner-occupied housing units in Los Gatos.

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Figure B-23 Home Values of Owner-Occupied Units
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25075. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-07.

Note: Universe: Owner-occupied units.

The region’s home values have increased steadily since 2000, besides a decrease during the Great Recession.

The rise in home prices has been especially steep since 2012, with the median home value in the Bay Area nearly doubling during this time. Since 2001, the typical home value has increased 164.0 percent in Los Gatos from $798,770 to $2,109,040. This change is considerably greater than the change in Santa Clara County and for the region as a whole. Figure B-24 shows Zillow home value index for Los Gatos.

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Figure B-24 Zillow Home Value Index (ZHVI)
Source: Zillow, Zillow Home Value Index (ZHVI). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-08.

Note: Universe: Owner-occupied housing units. Zillow describes the ZHVI as a smoothed, seasonally adjusted measure of the typical home value and market changes across a given region and housing type. The ZHVI reflects the typical value for homes in the 35th to 65th percentile range. The ZHVI includes all owner-occupied housing units, including both single-family homes and condominiums. More information on the ZHVI is available from Zillow.

The regional estimate is a household-weighted average of county-level ZHVI files, where household counts are yearly estimates from DOF’s E-5 series For unincorporated areas, the value is a population weighted average of unincorporated communities in the county matched to census-designated population counts.

Similar to home values, rents have also increased dramatically across the Bay Area in recent years. Many renters have been priced out, evicted, or displaced, particularly communities of color. Residents finding themselves in one of these situations may have had to choose between commuting long distances to their jobs and schools or moving out of the region, and sometimes, out of the State.

In Los Gatos, the largest proportion of rental units rented in the ‘rent $2,000-$2,500 category’, totaling 24.2 percent, followed by 23.7 percent of units renting in the ‘rent $3,000 or More category.’ Looking beyond the Town, the largest share of units in Santa Clara County is in the ‘rent $2,000-$2,500 category’, compared to the ‘rent $1,500-$2,000 category’ for the Bay Area as a whole. Figure B-25 shows contract rents for renter-occupied units in Los Gatos, Santa Clara County, and the Bay Area as a whole.

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Figure B-25 Contract Rents for Renter-Occupied Units
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25056. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-09.

Note: Universe: Renter-occupied housing units paying cash rent.

Since 2009, the median rent has increased by 33.5 percent in the Town of Los Gatos, from $1,700 to $2,270 per month. In Santa Clara County, the median rent has increased 39.6 percent, from $1,540 to $2,150. The median rent in the region has increased significantly during this time from $1,200 to $1,850, a 54.2 percent increase18.

Figure B-25 shows median contract rent in the Town of Los Gatos, Santa Clara County, and the Bay Area as a whole.
18 While the data on home values shown in Figure B-24 comes from Zillow, Zillow does not have data on rent prices available for most Bay Area jurisdictions. To have a more comprehensive dataset on rental data for the region, the rent data in this document comes from the U.S. Census Bureau’s American Community Survey, which may not fully reflect current rents. Local jurisdiction staff may want to supplement the data on rents with local realtor data or other sources for rent data that are more current than Census Bureau data.

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Figure B-26 Median Contract Rent
Source: U.S. Census Bureau, American Community Survey 5-Year Data releases, starting with 2005-2009 through 2015-2019, B25058, B25056 (for unincorporated areas). County and regional counts are weighted averages of jurisdiction median using B25003 rental unit counts from the relevant year. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-10.

Note: Universe: Renter-occupied housing units paying cash rent. For unincorporated areas, median is calculated using distribution in B25056.

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Overpayment and Overcrowding
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.” Low-income residents are the most impacted by high housing costs and experience the highest rates of cost burden. Spending such large portions of their income on housing puts low-income households at higher risk of displacement, eviction, or homelessness. While the housing market has resulted in home prices increasing dramatically, homeowners often have mortgages with fixed rates, whereas renters are more likely to be impacted by market increases.

When looking at the cost burden across tenure in the Town of Los Gatos, 20 percent of renters spend 30 percent to 50 percent of their income on housing compared to 16 percent of those that own. Additionally, 22 percent of renters are severely cost-burdened (i.e., spend 50 percent or more of their income on housing), while 12 percent of owners are severely cost-burdened. Figure B-27 shows cost burden by tenure.

Figure B-27 Cost Burden by Tenure, Los Gatos
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25070, B25091. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table OVER-06.

Note: Universe: Occupied housing units. Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is “select monthly owner costs”, which includes mortgage payment, utilities, association fees, insurance, and real estate taxes. HUD defines cost-burdened households as those whose monthly housing costs exceed 30 percent of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50 percent of monthly income.

When one looks at both renters and owners together in the Town of Los Gatos, 15.6 percent of households spend 50 percent or more of their income on housing, while 17 percent spend 30 percent to 50 percent. However, these rates vary greatly across income categories. For example, 78.3 percent of Los Gatos households making less than 30 percent of AMI spend the majority of their income on housing. For Los Gatos residents making more than 100 percent of AMI, just 3.7 percent are severely cost-burdened, and 83.9 percent of those making more than 100 percent of AMI spend less than 30 percent of their income on housing. Figure B-28 shows cost burden by income level.

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Figure B-28 Cost Burden by Income Level, Los Gatos
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table OVER-05.

Note: Universe: Occupied housing units. Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is “select monthly owner costs”, which includes mortgage payment, utilities, association fees, insurance, and real estate taxes. HUD defines cost-burdened households as those whose monthly housing costs exceed 30 percent of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50 percent of monthly income. 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.

Currently, people of color19 are more likely to experience poverty and financial instability as a result of Federal, State, 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.

Hispanic or Latinx residents are the most severely cost burdened with 22 percent spending more than 50 percent of their income on housing. Figure B-29 shows cost burden by race. 19 As before, this category as it is used here includes all non-White persons.

3.7%

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Figure B-29 Cost Burden by Race, Los Gatos
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table OVER-08.

Note: Universe: Occupied housing units. Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is “select monthly owner costs”, which includes mortgage payment, utilities, association fees, insurance, and real estate taxes. HUD defines cost-burdened households as those whose monthly housing costs exceed 30 percent of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50 percent of monthly income. For the purposes of this graph, the “Hispanic or Latinx” racial/ethnic group represents those who identify as having Hispanic/Latinx ethnicity and may also be members of any racial group. All other racial categories on this graph represent those who identify with that racial category and do not identify with Hispanic/Latinx ethnicity.

Large family households often have special housing needs due to a lack of adequately sized affordable housing available. The higher costs required for homes with multiple bedrooms can result in larger families experiencing a disproportionate cost burden than the rest of the population and can increase the risk of housing insecurity.

In the Town of Los Gatos, 12.2 percent of large family households experience a cost burden of 30 to 50 percent, while 9.6 percent of households spend more than half of their income on housing. Some 17.8 percent of all other households have a cost burden of 30 percent to 50 percent, with 16.8 percent of households spending more than 50 percent of their income on housing. Figure B-30 shows cost burden by household size.

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Figure B-30 Cost Burden by Household Size, Los Gatos
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table OVER-09.

Note: Universe: Occupied housing units. Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is “select monthly owner costs”, which includes mortgage payment, utilities, association fees, insurance, and real estate taxes. HUD defines cost-burdened households as those whose monthly housing costs exceed 30 percent of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50 percent of monthly income.

When cost-burdened seniors are no longer able to make house payments or pay rents, displacement from their homes can occur, putting further stress on the local rental market or forcing residents out of the community they call home. Understanding how seniors might be cost-burdened is of particular importance due to their special housing needs, particularly for low-income seniors.

In the Town of Los Gatos, 74 percent of seniors making less than 30 percent of AMI are spending the majority of their income on housing. For seniors making more than 100 percent of AMI, only 4.3 percent are spending the majority of their income on housing. Figure B-31 shows cost-burdened senior households by income level.

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Figure B-31 Cost-Burdened Senior Households by Income Level, Los Gatos Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table SEN-03.

Note: Universe: Senior households. For the purposes of this graph, senior households are those with a householder who is aged 62 or older. Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities).

For owners, housing cost is “select monthly owner costs”, which includes mortgage payment, utilities, association fees, insurance, and real estate taxes. HUD defines cost-burdened households as those whose monthly housing costs exceed 30 percent of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50 percent of monthly income. 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.

Overcrowding occurs when the number of people living in a household is greater than the home was designed to hold20. The Census Bureau considers units with more than 1.5 occupants per room to be severely overcrowded.

Overcrowding is often related to the cost of housing and can occur when demand in a town, city, or region is high.

In many towns and cities, overcrowding is seen more amongst those that are renting, with multiple households sharing a unit to make it possible to stay in their communities. In the Town of Los Gatos, 4.3 percent of households that rent are severely overcrowded (i.e., more than 1.5 occupants per room), compared to 0.3 percent of households that own. Figure B-32 shows overcrowding by tenure and severity. 20 There are several different standards for defining overcrowding, but this report uses the Census Bureau definition, which is more than one occupant per room (not including bathrooms or kitchens).

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Figure B-32 Los Gatos Overcrowding by Tenure and Severity Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table OVER-01.

Note: Universe: Occupied housing units. The Census Bureau defines an overcrowded unit as one occupied by 1.01 persons or more per room (excluding bathrooms and kitchens), and units with more than 1.5 persons per room are considered severely overcrowded.

Overcrowding often disproportionately impacts low-income households. In Los Gatos, less than one percent of very low-income households (i.e., below 50 percent AMI) experience severe overcrowding. The income group most experiencing severe overcrowding is the 81%-100% of AMI group. Figure B-33 shows overcrowding by income level and severity.

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Figure B-33 Los Gatos Overcrowding by Income Level and Severity Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table OVER-04.

Note: Universe: Occupied housing units. The Census Bureau defines an overcrowded unit as one occupied by 1.01 persons or more per room (excluding bathrooms and kitchens), and units with more than 1.5 persons per room are considered severely overcrowded. 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.

Communities of color are more likely to experience overcrowding similar to how they are more likely to experience poverty, financial instability, and housing insecurity. People of color tend to experience overcrowding at higher rates than White residents. In Los Gatos, the racial group with the largest overcrowding rate is Hispanic or Latinx.

Figure B-34 shows overcrowding by race.

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Figure B-34 Overcrowding by Race, Los Gatos
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25014. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table OVER-03.

Note: Universe: Occupied housing units. The Census Bureau defines an overcrowded unit as one occupied by 1.01 persons or more per room (excluding bathrooms and kitchens), and units with more than 1.5 persons per room are considered severely overcrowded. For this table, the Census Bureau does not disaggregate racial groups by Hispanic/Latinx ethnicity. However, data for the white racial group is also reported for white householders who are not Hispanic/Latinx. Since residents who identify as white and Hispanic/Latinx may have very different experiences within the housing market and the economy from those who identify as white and non-Hispanic/Latinx, data for multiple white sub-groups are reported here. The racial/ethnic groups reported in this table are not all mutually exclusive. Therefore, the data should not be summed as the sum exceeds the total number of occupied housing units for this jurisdiction. However, all groups labelled “Hispanic and Non-Hispanic” are mutually exclusive, and the sum of the data for these groups is equivalent to the total number of occupied housing units.

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B.4 Special Housing Needs
Large Households
Large households are defined as those with five or more members. These households are usually families with two or more children or multi-generational families. It can also include multiple families living in one housing unit.

Large households are a special needs group because the availability of adequately sized, affordable housing units is limited. To save for necessities such as food, clothing, and medical care, lower- and moderate-income large households may reside in smaller units, resulting in overcrowding. Large households often have different housing needs than smaller households. If the Town’s rental housing stock does not include larger apartments, large households who rent could end up living in overcrowded conditions.

In Los Gatos, for large households with five or more persons, most units were owner occupied. Figure B-35 shows household size by tenure. According to 2015-2019 ACS estimates, 5.9 percent of households are large households with five or more persons compared to 12.4 percent countywide. In Los Gatos, 7.3 percent of owneroccupied households are large households while only 3.2 percent of renter-occupied households are large households.

Figure B-35 Household Size by Tenure, Los Gatos
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25009. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table LGFEM-01.

Note: Universe: Occupied housing units.

The unit sizes available in a community affect the household sizes that can access that community. Large families are generally served by housing units with three or more bedrooms, of which there are 7,760 units in the Town of Los Gatos. Among these large units, most are owner occupied. Figure B-36 summarizes housing units by the number of bedrooms. As discussed above, there are approximately 572 large owner-occupied households and 137 large renter-occupied households residing in Los Gatos according to 2015-2019 ACS estimates. Based on the 7,760 housing units with three or more bedrooms in the Town, Los Gatos has enough large housing units suitable for large households.

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Figure B-36 Housing Units by Number of Bedrooms, Los Gatos Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25042. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-05.

Note: Universe: Housing units.

In addition to existing housing units with three or more bedrooms available to large households in Los Gatos, large households can also benefit from general programs and services for lower-and moderate-income persons, including Housing Choice Vouchers, and various community and social services provided by non-profit organizations in the region.

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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, especially single parent households, typically have lower incomes and a greater need for affordable housing. In addition, these households can have needs for items such as accessible day care and health care, as well as other supportive services. The relatively low incomes earned by female-headed households, combined with the increased need for supportive services, severely limit the housing options available to them.

In the Town of Los Gatos, the largest proportion of households is Married-Couple Family Households at 58.1 percent of the total, while Female-Headed Family Households make up 8 percent of all households.

Comparatively, female-headed family households make up 9.8 percent of households countywide and 10.4 percent of households in the Bay Area. Figure B-37 provides information on household type in Los Gatos.

Figure B-37 Household Type
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B11001. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-23.

Note: Universe: Households. For data from the Census Bureau, a “family household” is a household where two or more people are related by birth, marriage, or adoption. “Non-family households” are households of one person living alone, as well as households where none of the people are related to each other.

Female-headed households with children may face particular housing challenges, with pervasive 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, 36 female-headed households with children (eight percent) fell in the Below Poverty Level category, while 26 female-headed households without children (five percent) fell in the Below Poverty Level category.

Approximately 6.2 percent of female-headed households, with and without children, in Los Gatos are below the poverty level compared to only 0.6 percent of married couple households. Figure B-38 shows female-headed households by poverty status.

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Figure B-38 Female-Headed Households by Poverty Status, Los Gatos Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B17012. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table LGFEM-05.

Note: Universe: Female Households. The Census Bureau uses a federally defined poverty threshold that remains constant throughout the country and does not correspond to Area Median Income.

Assistance for female-headed households includes childcare services are also provided in licensed private Family Child Care Homes within the Town. According to the California Department of Social Services (CDSS) Facility database, accessed in September 2023, there are two school licensed infant child care centers in Los Gatos with a capacity to serve 66 children and three licensed school age day care centers with a capacity to serve 195 children. There are also 13 licensed day care centers in the Town (capacity to serve 1,235).

Female heads of households in Los Gatos can also benefit from general programs and services for lower-and moderate-income households, including the Housing Choice Voucher program, and various community and social services provided by non-profit organizations in the region.

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Seniors
Senior households often experience a combination of factors that can make accessing or keeping affordable housing a challenge. They often live on fixed incomes and are more likely to 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.

Nearly 21 percent of the population in Los Gatos is aged 65 or older based on 2015-2019 ACS estimates. In comparison, only 13.2 percent of the population countywide is in this age range. The proportion of the population aged 65 and older in Los Gatos has increased from 17.9 percent during the 2006-2010 ACS. In the Town of Los Gatos, the largest proportion of senior households who rent fell into one of the categories below the Greater than 100% AMI category, while the largest proportion of senior households who are homeowners fell in the Greater than 100% AMI category. Figure B-39 shows senior households by income and tenure.

According to 2015-2019 ACS estimates, 46.8 percent of persons aged 75 and older and 16.7 percent of persons aged 65 to 74 in Los Gatos experience a disability compared to only 4.7 percent of the population aged 18 to 64.

The most common disability types amongst the elderly population aged 65 and older include ambulatory difficulties (19.2 percent of elderly population) and independent living difficulties (15.9 percent of elderly population).21
Figure B-39 Senior Households by Income and Tenure, Los Gatos Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table SEN-01.

Note: Universe: Senior households. For the purposes of this graph, senior households are those with a householder who is aged 62 or older. 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.
21 Ambulatory difficulty: Having serious difficulty walking or climbing stairs; Independent living difficulty: Because of a physical, mental, or emotional problem, having difficulty doing errands alone such as visiting a doctor’s office or shopping.

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 The housing needs of this group can be addressed through smaller units, accessory dwelling units on lots with existing homes, shared living arrangements, congregate or assisted living and housing assistance programs. The Housing Element includes several programs to directly address the housing needs of the elderly through conservation of affordable housing, accessory dwelling units, helping seniors program, housing for persons with special needs, and affirmatively furthering fair housing. According to the CDSS, there are three licensed residential care elderly facilities in Los Gatos with a capacity to serve 70 residents. There is also one continuing care retirement community in Los Gatos with a capacity to serve 458 residents. The Town also partners with the Los Gatos-Saratoga Community Education and Recreation, providing a comprehensive Senior Services program to residents aged 55 and older.

People with Disabilities
Federal laws define a person with a disability as “any person who has a physical or mental impairment that substantially limits one or more major life activities; has a record of such impairment; or is regarded as having such an impairment.” In general, a physical or mental impairment includes hearing, mobility and visual impairments, chronic alcoholism, chronic mental illness, AIDS, AIDS Related Complex, and intellectual disability that substantially limits one or more major life activities. Major life activities include walking, talking, hearing, seeing, breathing, learning, performing manual tasks, and caring for oneself.

The U.S. Census Bureau classifies disabilities into the following categories:
• Hearing difficulty: Deaf or having serious difficulty hearing • Vision difficulty: Blind or having serious difficulty seeing, even when wearing glasses • Cognitive difficulty: Because of a physical, mental, or emotional problem, having difficulty remembering, concentrating, or making decisions
• Ambulatory difficulty: Having serious difficulty walking or climbing stairs • Self-care difficulty: Having difficulty bathing or dressing • Independent living difficulty: Because of a physical, mental, or emotional problem, having difficulty doing errands alone such as visiting a doctor’s office or shopping 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.

The Housing Element must analyze potential and actual constraints upon the development, maintenance, and improvement of housing for persons of disabilities and include programs for the removal of such constraints or provide reasonable accommodation for housing designed for persons with disabilities.

Disability status does not necessarily indicate a need for special need/supportive housing, and data on the total number of disabled persons needing supportive housing in the Town is not available. Using the national standard of one to three percent of the disabled population needing supportive housing, it can be estimated that the Town has approximately 28 to 84 disabled individuals in need of supportive housing.

Individuals with disabilities can often have difficulties participating in the labor force or finding employment, whether because of an inability to leave one’s home, an inability to meet the physical requirements of the job, discrimination on the part of prospective employers, or other factors.

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Overall, 9 percent of people in Los Gatos have a disability of some kind.22 Figure B-40 shows the rates at which different disabilities are present among residents of Los Gatos. As discussed above, elderly residents are more likely to experience disabilities compared to residents under the age of 65.

Figure B-40 Disability by Type, Los Gatos
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B18102, Table B18103, Table B18104, Table B18105, Table B18106, Table B18107. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table DISAB-01.

Note: Universe: Civilian noninstitutionalized population 18 years and over. These disabilities are counted separately and are not mutually exclusive, as an individual may report more than one disability. These counts should not be summed. The Census Bureau provides the following definitions for these disability types: Hearing difficulty: deaf or has serious difficulty hearing. Vision difficulty: blind or has serious difficulty seeing even with glasses. Cognitive difficulty: has serious difficulty concentrating, remembering, or making decisions. Ambulatory difficulty: has serious difficulty walking or climbing stairs.

Self-care difficulty: has difficulty dressing or bathing. Independent living difficulty: has difficulty doing errands alone such as visiting a doctor’s office or shopping.

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 them23.

In the Town of Los Gatos, there are 50 children under the age of 18 with a developmental disability (40.7 percent), while there are 73 adults with a developmental disability (60 percent). Table B-4 below shows the number of persons in Los Gatos with developmental disabilities by age. 22 These disabilities are counted separately and are not mutually exclusive, as an individual may report more than one disability. These counts should not be summed.
23 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.

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Table B-4 Los Gatos Population with Developmental Disabilities by Age Age Group Number
Age Under 18 50
Age 18+ 73
Source: California Department of Developmental Services, Consumer Count by California ZIP Code and Age Group (2020). This table is included in the Data Packet Workbook as Table DISAB-04.

Note: Universe: Population with developmental disabilities. Notes: The California Department of Developmental Services is responsible for overseeing the coordination and delivery of services to more than 330,000 Californians with developmental disabilities including cerebral palsy, intellectual disability, Down syndrome, autism, epilepsy, and related conditions. The California Department of Developmental Services provides ZIP code level counts. To get jurisdiction-level estimates, ZIP code counts were cross walked to jurisdictions using census block population counts from Census 2010 SF1 to determine the share of a ZIP code to assign to a given jurisdiction.

The most common living arrangement for individuals with disabilities is in Los Gatos is the home of parent/family/guardian. Table B-5 shows the Los Gatos population with developmental disabilities by residence.

Table B-5 Los Gatos Population with Developmental Disabilities by Residence Residence Type Number
Home of Parent/Family/Guardian 102
Foster/Family Home 9
Independent/Supported Living 7
Other 4
Community Care Facility 4
Intermediate Care Facility 0
Source: California Department of Developmental Services, Consumer Count by California ZIP Code and Residence Type (2020). This table is included in the Data Packet Workbook as Table DISAB-05.

Note: Universe: Population with developmental disabilities. Notes: The California Department of Developmental Services is responsible for overseeing the coordination and delivery of services to more than 330,000 Californians with developmental disabilities including cerebral palsy, intellectual disability, Down syndrome, autism, epilepsy, and related conditions. The California Department of Developmental Services provides ZIP code level counts. To get jurisdiction-level estimates, ZIP code counts were cross walked to jurisdictions using census block population counts from Census 2010 SF1 to determine the share of a ZIP code to assign to a given jurisdiction.

Regional centers are required by law to provide services in the most cost-effective way possible. They must use all other resources, including generic resources, before using any regional center funds. A generic resource is a service provided by an agency that has a legal responsibility to provide services to the general public and receives public funds for providing those services. Some generic agencies may include the local school district, county social services department, Medi-Cal, Social Security Administration, Department of Rehabilitation and others. Other resources may include natural support, such as assistance from family, friends or others at little or no cost.

Special housing needs for persons with disabilities fall into two general categories: physical design to address mobility impairments and in-home social, educational, and medical support to address developmental and mental impairments. According to California Department of Social Services records, there is one adult day care program in Los Gatos with a capacity to serve 30 residents. As discussed above, there are also three licensed residential care elderly facilities and one continuing care retirement community in Los Gatos.

The Housing Element includes several programs to directly address the housing needs of persons with disabilities, including developmental disabilities, including programs related to conservation of affordable housing, incentives for new affordable housing, accessory dwelling units, housing for persons with special needs, and affirmatively furthering fair housing.

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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 have found themselves housing insecure and ended up homeless in recent years, either temporarily or longer term. Addressing the specific housing needs for 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 are 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 an emergency shelter. Figure B-41 shows household type and shelter status in Santa Clara County.

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Figure B-41 Homelessness by Household Type and Shelter Status, Santa Clara County Source: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports (2019). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HOMELS-01.

Note: Universe: Population experiencing homelessness. This data is based on Point-in-Time (PIT) information provided to HUD by CoCs in the application for CoC Homeless Assistance Programs. The PIT Count provides a count of sheltered and unsheltered homeless persons on a single night during the last ten days in January. Each Bay Area county is its own CoC, and so the data for this table is provided at the county-level. Per HCD’s requirements, jurisdictions will need to supplement this county-level data with local estimates of people experiencing homelessness.

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. Figure B-42 shows the racial group share of the homeless population.

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Figure B-42 Racial Group Share of General and Homeless Populations, Santa Clara County Source: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports (2019); U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B01001(A-I). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HOMELS-02.

Note: Universe: Population experiencing homelessness. This data is based on Point-in-Time (PIT) information provided to HUD by CoCs in the application for CoC Homeless Assistance Programs. The PIT Count provides a count of sheltered and unsheltered homeless persons on a single night during the last ten days in January. Each Bay Area county is its own CoC, and so the data for this table is provided at the county-level. Per HCD’s requirements, jurisdictions will need to supplement this county-level data with local estimates of people experiencing homelessness. HUD does not disaggregate racial demographic data by Hispanic/Latinx ethnicity for people experiencing homelessness. Instead, HUD reports data on Hispanic/Latinx ethnicity for people experiencing homelessness in a separate table. Accordingly, the racial group data listed here includes both Hispanic/Latinx and non-Hispanic/Latinx individuals.

In Santa Clara County, Latinx residents represent 42.7 percent of the population experiencing homelessness, while Latinx residents comprise 25.8 percent of the general population. Figure B-43 shows the Latinx share of the homeless population in Santa Clara County.

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Figure B-43 Latinx Share of General and Homeless Populations, Santa Clara County Source: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports (2019); U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B01001(A-I). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HOMELS-03.

Note: Universe: Population experiencing homelessness. This data is based on Point-in-Time (PIT) information provided to HUD by CoCs in the application for CoC Homeless Assistance Programs. The PIT Count provides a count of sheltered and unsheltered homeless persons on a single night during the last ten days in January. Each Bay Area county is its own CoC, and so the data for this table is provided at the county-level. Per HCD’s requirements, jurisdictions will need to supplement this county-level data with local estimates of people experiencing homelessness. The data from HUD on Hispanic/Latinx ethnicity for individuals experiencing homelessness does not specify racial group identity. Accordingly, individuals in either ethnic group identity category (Hispanic/Latinx or non-Hispanic/Latinx) could be of any racial background.

Many of those experiencing homelessness are dealing with severe issues, including mental illness, substance abuse, and domestic violence, which are potentially life threatening and require additional assistance.

In Santa Clara County, homeless individuals are commonly challenged by severe mental illness, with 2,659 reporting this condition. Of those, some 87.6 percent are unsheltered, further adding to the challenge of handling the issue. Figure B-44 shows selected characteristics of the homeless population in Santa Clara County.

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Figure B-44 Characteristics for the Population Experiencing Homelessness, Santa Clara County Source: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports (2019). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HOMELS-04.

Note: Universe: Population experiencing homelessness. This data is based on Point-in-Time (PIT) information provided to HUD by CoCs in the application for CoC Homeless Assistance Programs. The PIT Count provides a count of sheltered and unsheltered homeless persons on a single night during the last ten days in January. Each Bay Area county is its own CoC, and so the data for this table is provided at the county-level. Per HCD’s requirements, jurisdictions will need to supplement this county-level data with local estimates of people experiencing homelessness. These challenges/characteristics are counted separately and are not mutually exclusive, as an individual may report more than one challenge/characteristic. These counts should not be summed.

In the Town of Los Gatos, there were no reported students experiencing homeless in the 2019-20 school year.

By comparison, Santa Clara County has seen a 3.5 percent increase in the population of students experiencing homelessness since the 2016-17 school year, and the Bay Area population of students experiencing homelessness decreased by 8.5 percent. During the 2019-2020 school year, there were still some 13,718 students experiencing homelessness throughout the region, adding undue burdens on learning and thriving, with the potential for longer term negative effects. Table B-6 summarizes students in public schools experiencing homelessness.

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Table B-6 Students in Local Public Schools Experiencing Homelessness Academic Year Los Gatos Santa Clara
County Bay Area
2016-17 0 2,219 14,990
2017-18 0 2,189 15,142
2018-19 0 2,405 15,427
2019-20 0 2,297 13,718
Source: California Department of Education, California Longitudinal Pupil Achievement Data System (CALPADS), Cumulative Enrollment Data (Academic Years 2016-2017, 2017-2018, 2018-2019, 2019-2020). This table is included in the Data Packet Workbook as Table HOMELS-05.

Note: Universe: Total number of unduplicated primary and short-term enrollments within the academic year (July 1 to June 30), public schools. The California Department of Education considers students to be homeless if they are unsheltered, living in temporary shelters for people experiencing homelessness, living in hotels/motels, or temporarily doubled up and sharing the housing of other persons due to the loss of housing or economic hardship. The data used for this table was obtained at the school site level, matched to a file containing school locations, geocoded and assigned to jurisdiction, and finally summarized by geography.

The Town contributes funds to the Santa Clara County Continuum of Care program, which includes prevention services, permanent affordable housing, the provision of emergency shelters, and transitional and permanent housing. Persons experiencing homelessness may also benefit from programs outlined in this Housing Element, specifically actions related to affordable housing development, conservation of affordable housing, increased housing opportunities for persons experiencing homelessness, and supportive services for persons experiencing homelessness.

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 affordable housing can be challenging, particularly in the current housing market.

In the Town of 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 2 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. Table B-7 summarizes migrant worker student population in the Town of Los Gatos, Santa Clara County, and the Bay Area as a whole.

Table B-7 Migrant Worker Student Population
Academic Year Los Gatos Santa Clara
County Bay Area
2016-17 0 978 4,630
2017-18 0 732 4,607
2018-19 0 645 4,075
2019-20 0 492 3,976
SOURCE: California Department of Education, California Longitudinal Pupil Achievement Data System (CALPADS), Cumulative Enrollment Data (Academic Years 2016-2017, 2017-2018, 2018-2019, 2019-2020). This table is included in the Data Packet Workbook as Table FARM 01.

Note: Universe: Total number of unduplicated primary and short-term enrollments within the academic year (July 1 to June 30), public schools. The data used for this table was obtained at the school site level, matched to a file containing school locations, geocoded and assigned to jurisdiction, and finally summarized by geography.

According to the U.S. Department of Agriculture Census of Farmworkers, the number of permanent farm workers in Santa Clara County has increased since 2002, totaling 2,418 in 2017, while the number of seasonal farm workers has decreased, totaling 1,757 in 2017. Figure B-45 shows farm operation and labor in Santa Clara County.

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According to the 2015-2019 ACS, there are no Los Gatos residents employed in farming, fishing, and forestry occupations. While there are little to no farmworkers in Los Gatos, uncounted or future farmworkers in Los Gatos can still benefit from general programs and services for lower and moderate income households outlined in this Housing Element.

Figure B-45 Farm Operations and Farm Labor by County, Santa Clara County Source: U.S. Department of Agriculture, Census of Farmworkers (2002, 2007, 2012, 2017), Table 7: Hired Farm Labor. For the data table behind this figure, please refer to the Data Packet Workbook, Table FARM-02.

Note: Universe: Hired farm workers (including direct hires and agricultural service workers who are often hired through labor contractors). Farm workers are considered seasonal if they work on a farm less than 150 days in a year, while farm workers who work on a farm more than 150 days are considered to be permanent workers for that farm.

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Non-English Speakers
California has long been an immigration gateway to the United States, which means that many languages are spoken throughout the Bay Area. Since learning a new language is universally challenging, it is not uncommon for residents who have immigrated to the United States to have limited English proficiency. This limitation can lead to additional disparities if there is a disruption in housing, such as an eviction, because residents might not be aware of their rights or they might be wary to engage due to immigration status concerns.

In the Town of Los Gatos, 1.7 percent of residents five years and older identified as speaking English not well or not at all, which was below the proportion for Santa Clara County. Throughout the region the proportion of residents five years and older with limited English proficiency was eight percent. Figure B-46 shows population with limited English proficiency in the Town of Los Gatos, Santa Clara County, and the Bay Area as a whole.

Figure B-46 Population with Limited English Proficiency Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B16005. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table AFFH-03.

Note: Universe: Population 5 years and over.

Santa Clara County has approximately 23 emergency shelters, providing close to 800 beds year-round, with an additional 300 beds available during the winter months (November through March). There are also over 1,100 transitional housing beds throughout the County that offer a combination of stable housing and intensive, targeted support services for the mentally ill, those with chronic substance abuse, developmental disabilities, and other factors that prevent the homeless from returning to permanent housing situations. Transitional housing includes both single site and "scattered site" programs. Table B-8 below provides a summary of homeless facilities, emergency shelters and transitional housing near the Town of Los Gatos.

1.7%

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Table B-8 Homeless Facilities Near Los Gatos
Facility Beds Target Population Location
Emergency Shelters
Asian Americans for Community
Involvement 12 Women with Children San Jose
City Team Rescue Mission 52 Single men San Jose
Hospitality House, Salvation Army 24 Single men San Jose Our House Youth Services HomeFirst 10 Homeless and run-away youth San Jose San Jose Family Shelter 143 Families San Jose
Support Network for Battered
Women 18 Domestic violence shelter- women and children San Jose Emergency Shelter/Transitional Housing
InnVision 178 Working men, women & children, mentally
ill men & women San Jose
James Boccardo Reception Center 370 Families and single adults San Jose Transitional Housing
Next Door- Women with Children 19 Domestic Violence Shelter -Women and children San Jose
St. Josephs Cathedral 45 Worker housing- men, women and children San Jose
YWCA- Villa Nueva 126 Women and children San Jose
Source: Santa Clara County Consolidated Plan, 2010-2015

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 B.5 Fair Housing Compliance
Santa Clara County and the Town of Los Gatos are compliant with federal and State fair housing laws. Fair housing laws both the Town and County remain complaint with include:
 Title II of the Americans with Disabilities Act (ADA), prohibiting discrimination on the basis of disability in all public services, programs, and activities provided by state and local governments. The Town’s Zoning Ordinance does contain a process for requesting reasonable accommodations;  Senate Bill 2 (SB 2), requiring local governments to permit emergency shelters (in the CM zone) and transitional housing (in the LM zone) without any discretionary action. The provision for transitional and supportive housing in compliance with State law has been included as Implementation Program APBC; and
 Senate Bill 520 (SB 520), adopting written reasonable accommodation procedures in the Town of Los Gatos’ Zoning Ordinance.

Local Housing Policies and Programs
The Town has adopted and implemented a range of local housing policies to encourage housing production and affordable housing development. Specific to Town residents, Los Gatos has created programs to assist its special needs populations and/or collaborated with county organizations to improve resident services. Local policies include:
 Ordinance 2307 (2020), adopting an ordinance in compliance with State law to address barriers to the production of Accessory Dwelling Units (ADUs).and encourage ADU development by increasing the square footage under State law and increasing the allowable floor area by 10 percent.

Local Housing Policies and Programs
The Town of Los Gatos has not been engaged in any fair housing lawsuits, findings, settlements, judgements, or complaints in the last eight years.

B.6 Renter’s Survey Results
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 chosen languages were determined in communicating with the Los Gatos-Monte Sereno Police Department as being the most encountered in their interactions with the community. The survey received a total of 62 responses. The following serves as a brief summary of responses.

Online Survey Results
Respondent Demographics
The Town collected 42 online responses via the English version of the survey. Of the respondents, 71 percent were between 35-74 years of age and 81 percent identified as non-Hispanic White. The annual income of respondents was diverse with the majority earning $200,000 or more (26 percent), $100,001-$200,000 (21 percent), and $75,001-$100,000 (19 percent). Seventeen (17) percent of the survey respondents preferred not to disclose their annual income.

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Respondent Role in the Town
Survey respondents were asked to identify their racial or ethnic group that they identify as, their annual household income, and their role in the Los Gatos community. The majority identified themselves as Los Gatos residents renting their homes (64 percent) compared to 17 percent owning their homes. Twelve (12) percent of respondents identified as business owners in the Town, 31 percent identified as working in the Town, and 10 percent identified as visitors. Zero percent of respondents identified as unhoused or lacking permanent housing.

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Respondent Ideas to Enhance Housing in Los Gatos
Survey respondents were asked for ideas to make Los Gatos more welcoming to potential residents who currently cannot find housing. The most common responses include the following:
 Increase affordable rental housing stock;
 Encourage property owners to build ADUs/JADUs to increase affordable rental units;  Affordable workforce housing;
 Add a variety of housing types for all income levels in Downtown Los Gatos and increase mixed-use development;
 Increase affordable housing stock specifically for single-person households;  Increase rental stock that is accessible for persons with disabilities and other special needs groups;  Expand Town support for cultural diversity;
 Increase community-centered public spaces (i.e.: community gardens, dog parks, place making, parks, etc.);
 Increase live/workspaces; and
 Repair historical past of racism and exclusionary practices.

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Appendix B. Housing Needs Assessment

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Respondent Housing Characteristics
Survey respondents were asked to identify what type of housing they currently reside in, of which approximately 45 percent identified as renting apartments, followed by 33 percent living in a guesthouse. When asked to rate the physical conditions of their home, 33 percent of respondents identified there was no need for rehabilitation of their home, while 29 percent indicated minor maintenance was needed (i.e.: peeling paint, chipped stucco, etc.).

Seventeen (17) percent indicated major repairs to their home were needed (i.e.: new plumbing, new roof, new windows, etc.).

Survey respondents were also asked to identify what type of housing they would like to see built in Los Gatos.

Seventy-one (71) percent of respondents indicated townhome/row homes were their preferred housing type to be built in the Town. Respondents also indicated preferences for apartment rental units (57 percent), ADUs (52 percent), and condominiums for purchase (45 percent).

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Housing Objectives and Goals for Los Gatos to Consider
When prompted to identify the top three most important housing objectives for Los Gatos (among a list of options provided), the majority of respondents chose the following:
 Providing more opportunities for home ownership at all income levels (79 percent);  Encouraging developments with a mix of residential, commercial, and other compatible uses (48 percent);  Encouraging development of small housing types, such as micro-units (48 percent); and  Assisting senior and/or affordable housing developers with securing State or Federal funding (45 percent).

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When respondents were asked if there are populations, they believe are underserved in Los Gatos the majority identified low-income households or families (67 percent), moderate-income or workforce-income households (67 percent), educators (64 percent), and service or retail workers (60 percent).

Survey respondents were asked to identify the three actions that would have the most impact on promoting housing supply, choice, and affordability and removing barriers to housing and neighborhoods of their choosing (among a list of options provided), the majority of respondents chose the following:
 Acquisition of additional affordable units in mixed income developments (64 percent);  Targeted mixed income strategies (i.e.: funding, incentives, policies and programs, density) (64 percent); and
 Modify the ownership of the BMP Program by increasing the percentage of BMP units required in new developments or changing the income designations for greater affordability (62 percent).

Lastly, survey respondents were asked to identify which action they believed would have the most impact on preventing displacement of existing residents from their homes and communities (among a list of options provided). The following are the respondent’s selections:
 Expansion of existing services, including dispute resolution services to tenants, mobile homeowners, and landlords would have the greatest impact (54 percent);
 Density bonus ordinances that expand on State replacement requirements (35 percent); and  Increased outreach in the existing tenant dispute resolution services to advertise the availability of multiple languages (11 percent).

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Summary and Conclusion
Overall, survey respondents indicated a need for; more affordable housing for renter households and special needs groups; increased housing types for smaller households; development of mixed-use space in the Downtown that accommodates mixed-income households; expansion of public services; and more opportunities for homeownership at all income levels.

In-Person Collected Survey Results
Respondent Demographics
In collaboration with West Valley Community Services (WVCS), the Town collected a total of 20 in-person responses from individuals. The survey was available in English, Spanish, and Russian, of which 13 in-person respondents spoke English and seven (7) spoke Russian. Forty (40) percent of respondents were between 18-34 years of age and 60 percent identified as non-Hispanic White. Seniors made up 25 percent of in-person respondents. The majority of respondents indicated earning an annual income between $0-$25,000 (56 percent).

Respondent Role in the Town
In-person survey respondents were asked to identify their racial or ethnic group that they identify as, their annual household income, and their role in the Los Gatos community. The majority of respondents chose not to identify their role in the Los Gatos community. Of those that did respond, 31 percent identified visiting the Town, 25 percent identified living in Los Gatos and renting their home, and 6 percent identified as being unhoused or having no permanent housing. None of the in-person respondents identified as homeowners, business owners, or representing an advocacy group/organization.

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Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Respondent Ideas to Enhance Housing in Los Gatos
In-person survey respondents were asked for ideas to make Los Gatos more welcoming to potential residents who currently cannot find housing. The most common responses include the following:
 Increase affordable housing stock specifically for single-person households;  Develop shared housing programs;
 Advertise affordable housing on social media sites like Facebook Marketplace; and  Develop a waiting list so potential residents may be notified when affordable housing is available.

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Respondent Housing Characteristics
In-person survey respondents were asked to identify what type of housing they currently reside in, of which 60 percent identified as renting apartments, followed by 27 percent not identifying. When asked to rate the physical conditions of their home, 35 percent of respondents chose not applicable, 24 percent indicated rehabilitation is not needed, and 18 percent indicated minor maintenance is needed (i.e.: peeling paint, chipped stucco, etc.). Six (6) percent indicated major repairs to their home are needed (i.e.: new plumbing, new roof, new windows, etc.).

In-person survey respondents were also asked to identify what type of housing they would like to see built in Los Gatos. Forty-two (42) percent of respondents indicated rental apartments were their preferred housing type to be built in the Town. Respondents also indicated preferences for single-family homes (26 percent), condominiums for purchase (21 percent), emergency housing (21 percent), duplexes (16 percent), townhome/row homes (16 percent), and ADUs (11 percent).

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Housing Objectives and Goals for Los Gatos to Consider
When prompted to identify the top three most important housing objectives for Los Gatos (among a list of options provided), the majority of in-person respondents chose the following:
 Providing more opportunities for home ownership at all income levels (50 percent);  Encouraging development of small housing types, such as micro-units (50 percent);  Encouraging developments with a mix of residential, commercial, and other compatible uses (39 percent); and
 Assisting permanent supportive housing, transition housing, and/or emergency shelter projects with securing State or Federal funding (33 percent).

When respondents were asked if there are populations, they believe are underserved in Los Gatos the majority identified low-income households or families (44 percent), moderate-income or workforce-income households (28 percent), students (28 percent), and all of the above (28 percent).

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In-person survey respondents were asked to identify the three actions that would have the most impact on promoting housing supply, choice, and affordability and removing barriers to housing and neighborhoods of their choosing (among a list of options provided), the majority of respondents chose the following two actions:
 Acquisition of additional affordable units in mixed income developments (53 percent); and  Increase accessible number of units above State law through incentives, policies, funding, and other similar measures (35 percent).

Lastly, survey respondents were asked to identify which action they believed would have the most impact on preventing displacement of existing residents from their homes and communities (among a list of options provided). The following are the respondent’s selections:
 Expansion of existing services, including dispute resolution services to tenants, mobile homeowners, and landlords would have the greatest impact (44 percent);
 Density bonus ordinances that expand on State replacement requirements (28 percent); and  Increased outreach in the existing tenant dispute resolution services to advertise the availability of multiple languages (28 percent).

Appendix B. Housing Needs Assessment
January NovemberSeptember March 20232024 Appendix B B-1 Summary and Conclusion
Overall, in-person survey respondents indicated a need for more affordable housing for renter households and special needs groups, specifically seniors and persons with disabilities; emergency and transitional housing; expansion of public and supportive services; and more opportunities for homeownership at all income levels.

Governmental and Non-Governmental Constraints C

APPENDIX

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-1 C.1 Governmental Constraints
Potential governmental constraints that impact housing development in Los Gatos include land use and zoning regulations, building code standards and code compliance, Town design and development standards, governmental fees and exactions, processing and permitting time, and local housing programs.

This appendix provides a full discussion of both governmental and non-governmental constraints that affect housing in Los Gatos. Governmental constraints are policies, requirements, or other actions imposed by various levels of government on land and housing ownership and development. In the Town, governmental constraints include General Plan Land Use designations, zoning code provisions, enforcement requirements, processing and permit procedures, fees, and on-site and off-site improvement requirements. These constraints are discussed further in the sections below.

Federal and State agency regulations that may constrain development are beyond the control of the Town and are therefore not addressed in this document. Non-governmental constraints are other conditions that impact housing development such as market factors, environmental setting, and construction costs.

Land Use
On June 30, 2022, the Town Council adopted the 2040 General Plan and accompanying Environmental Impact Report (EIR). As of September 27, 2022, tThe 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. This Appendix discusses and analyzes the 2020 General Plan, since it is the current document governing land use and development in the Town.

The Land Use Element could be considered topotentially create a constraint on housing production by limiting the densities for residential uses in the Town (irrespective of ADUs, JADUs, and SB 9 units), particularly for mixeduse and multi-family developments. However, the Town is actively addressing this limitation and seeking to meet its RHNA by increasing the maximum densities for the High Density Residential, Medium Density Residential, Mixed-Use, Neighborhood Commercial, and Central Business District land use designations as part of this Housing Element to provide for the development of housing for the sites in the Sites Inventory.

Residential Designations
 HR, Hillside Residential. The purpose of this designation is to provide for very low density single-family residential and accessory dwelling unit development on large lots or as part of a cluster development. This designation allows for development that is compatible with the unique mountainous terrain and rural nature of the hillside areas. Up to one dwelling unit per acre and maximum height of 25 feet is permitted.  Associated Zoning Designation: HR
 LDR, Low Density Residential. The purpose of this designation is to provide for accessory dwelling units and single-family residential purposesdevelopment. It encourages single-family residential development in either the standard development established by standard zoning or by innovative forms obtained through a planned development. Densities range from 0 to five dwelling units per acre, a maximum height of 30 feet and up to 40 percent lot coverage.
 Associated Zoning Designation: R-1
 MDR, Medium Density Residential. The purpose of this designation is to provide for accessory dwelling units, multi-family residential, duplexes, and/or small lot single-family homes. Mixed-use developments are not permitted in this designation. Densities range from five to 12 units per acre, maximum height up to 30 feet or 35 feet when the building has below grade parking and lot coverage up to 40 percent.  Associated Zoning Designations: R-1D, R-D, and R-M
 HDR, High Density Residential. The purpose of this designation is to provide for accessory dwelling units, and more dense multi-family residential development. Its objective is to provide quality housing in proximity to transit and/or commercial and business areas. Mixed-use developments are not permitted in this designation.

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Densities range from 12 to 20 units per acre, maximum height up to 30 feet or 35 feet when the building has below grade parking and lot coverage up to 40 percent.
 Associated Zoning Designation: R-M
Commercial Designations
 MU, Mixed-Use. The purpose of this designation is to provide a mixture of commercial uses (including retail, office, hotel/lodging) and residential, along with allowing stand-alone commercial uses (including retail, office, hotel/lodging, service uses, recreational uses, and restaurants). Residential is only allowed when developed in a mixed-use format with retail, office, or hotel/lodging components on the site. Projects developed under this designation shall maintain primary orientation to arterial street frontages and proper transitions and buffers to adjacent residential properties. Densities range up to 20 units per acre, with a maximum height up to 35 feet, and lot coverage up to 50 percent.
 Associated Zoning Designation: CH
 NC, Neighborhood Commercial. The purpose of this designation is to provide for necessary day-to-day commercial goods and services required by the residents of the adjacent neighborhoods. This designation encourages concentrated and coordinated commercial development at easily accessible locations.

Residential uses, developed using a mixed-use format, are allowed in the designation. Densities range up to 20 units per acre, with a maximum height up to 35 feet, and lot coverage up to 50 percent.  Associated Zoning Designation: C-1
 CDB, Central Business District. The purpose of this designation is to encourage a mixture of communityorientated commercial goods and services within the Downtown CBD. This designation applies exclusively to the Downtown CBD, with the goal to accommodate and retain local merchants and preserve the Town’s character. New development in the CBD shall integrate with existing structures of architectural and historical significance. Residential uses, developed using a mixed-use format, are allowed in the designation.

Densities range up to 20 units per acre, maximum height up to 45 feet and a FAR up to 2.0.  Associated Zoning Designation: C-2
Employment Center Designations
 OP, Office Professional. The purpose of this designation is to provide for professional and general business offices, incubator spaces, and innovation centers. This designation applies to various locations throughout the Town, often in proximity to neighborhood- or community-oriented commercial facilities, or as a buffer between commercial and residential uses. The intent of this designation is to satisfy the community’s need for general business and professional services, and local employment. Residential uses, developed using a mixed-use format, are allowed in the designation. Densities range up to 20 units per acre, with a maximum height up to 35 feet and lot coverage up to 50 percent.  Associated Zoning Designation: O
Specific Plan Designations
 NF-SP, North Forty Specific Plan. The purpose of tThis designation is to provideapplies to land for within the North 40 Specific Plan Area, which includes the designation of mixed-use development (residential and commercial, open space amenities, and space for a hotel).  Associated Zoning Designation: NF-SP
Town Code
The Town of Los Gatos Municipal Code provides zoning regulations that are more specific than the General Plan Land Use designations. This section describes residential development standards, including accessory dwelling units, overlay zones, and density bonuses. This section also analyzes constraints on housing for persons with disabilities.

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-3 The Zoning Code directly shapes the form and intensity of residential development by providing controls over land use, density, building heights, setbacks, lot coverage, and floor area ratios, which regulate the bulk and mass of buildings on a site. While necessary to maintain the high quality of life in the Town, the development standards contained in the Zoning Code limit densities and control building form and are potential constraints on new housing production. However, the Town is actively addressing this limitation and seeking to meet its RHNA by creating a Housing Element Overlay Zone (HEOZ) as part of Implementation Program AQ to allow for and encourage multi-family and mixed-use developments.

Residential Development Standards
There are seven residential and five commercial zoning districts in Los Gatos that allow residential uses. Table C-1 provides the regulations for each zone.
 Resource Conservation (RC)
 Hillside Residential (HR)
 Single-Family Residential (R-1)
 Single-Family Residential Downtown (R-1 D)
 Duplex Residential (RD)
 Multi-family Residential (RM)
 Residential Mobile Home Park (RMH)
 Neighborhood Commercial (C-1)
 Central Business District (C-2)
 Highway Commercial (CH)
 Office (O)
 Commercial Industrial Zone (LM)
As shown in Table C-1, development standards for each residential district could impede a project’s ability to develop housing at a density of at least 35 dwelling units per acre on a site. The 30-foot height limit for the majority of residential designations allows for up to three building stories and the maximum density of 20 dwelling units per acre in the RM zone limits development.

Table C-1 also provides the parking requirements for residential development in Los Gatos, by zoning district.

Parking is often a significant component of the cost of residential development and can be viewed as a constraint to the provision of housing. The Town has provided some flexibility in its parking requirements, particularly for Planned Developments and for some developments providing affordable units for elderly and disabled persons, generally easing the constraint of parking requirements on the development of higher density and affordable units.. However, the visitor parking requirement of one additional space per unit effectively raises the parking requirement for multi-family developments to 2.5 spaces per unit. This is a potential constraint to housing development, particularly for smaller units. Therefore, this Housing Element Update proposes Zoning Code amendments to reduce constraints related to parking standards, including reducing guest parking requirements and reducing requirements for development near transit.

As part of the Housing Element Update, programs to amend the Zoning Code and General Plan to ensure adequate sites are available to accommodate the identified sites in the Sites Inventory are proposed and include:
 Amending 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, floor area ratio, height) on those sites;
 Amending the Affordable Housing Overlay Zone to increase the maximum allowable density from 20 dwelling units per acre to 40 dwelling units per acre;
 Amending the North Forty Specific Plan to allow for increase the maximum allowable a density from 20 30 dwelling units per acre to 40 dwelling units per acre and an increase the total number of dwelling units allowed in the Specific Plan;
 Amending the General Plan to modify the designation of 16492 Los Gatos Boulevard and Parcel 532-07- 086 from Low Density Residential to Neighborhood Commercial;

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 Clarifying the text of the non-residential zones that the housing sites contained in the sites inventory sites table that are in these zones must include housing;
 Rezoning the Caltrans ROW (Site E3) from R-1:8 to R-M:5-12;  Amending the General Plan to modify the designation of the Caltrans ROW from Low Density Residential to Medium Density Residential; and
 Allowing for housing developments that are 100 percent affordable by-right in the Mixed-Use General Plan designation.

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C-5 Appendix C JanuaryNovember September March 20232024 Table C-1 Residential and Commercial Development Standards by Zoning District Notes: a Single-family, residential condominiums, and two-family dwellings must provide two parking spaces for each living unit and one additional visitor space for each residential unit is required. See discussion below for information regarding required visitor spaces. b The Town requires 1.5 parking spaces per unit for multiple-unit dwellings in all zones and two-family dwellings in the R-1D zone. One visitor parking space for each residential unit other than a detached single-family or two-family dwelling shall be required, unless the Planning Commission makes a finding that more or less visitor parking is necessary due to the size or type of housing unit(s). c
Setbacks vary depending on adjacent uses and streets for commercial designations.

Zoning
District Density Minimum Lot
Area
Maximum
Height
(Feet)
Front Yard
Setback
(Feet)
Side Yard
Setback
(Feet)
Rear Yard
Setback
(Feet)
Parking
Per Unit
(No. of
Spaces)
Other
RC 1 unit per lot 20 acres 25 30 20 25 2
HR
HR-1: 1-5 acres per unit
HR-2.5: 2.5-10 acres per unit
HR-5: 5-40 acres per unit
HR-20: 20-160 acres per unit
40,000 sq. ft. 25 30 20 25 2 Density ranges are dependent on hillside slope calculations.

R-1 R-1:8: 1 unit per lot 8,000 sq. ft. 30 25 8 20 2
R-1:10: 1 unit per lot 10,000 sq. ft. 30 25 10 20 2
R-1:12: 1 unit per lot 12,000 sq. ft. 30 25 10 20 2
R-1:15: 1 unit per lot 15,000 sq. ft. 30 25 12 25 2
R-1:20: 1 unit per lot 20,000 sq. ft. 30 30 15 25 2
R-1:30: 1 unit per lot 30,000 sq. ft. 30 30 16 25 2
R-1D 1 single-family or duplex unit
per lot
5,000 sq. ft. for
single-family
8,000 sq. ft. for
duplex
30 15 5 20
2 for singlefamily and
two-family
dwellings
Architecture and Site is required for
all new primary buildings.

R-D R-M: 5-12: 5-12 units per acre 8,000 sq. ft. 30 25 8 20 2 R-M
R-M: 5-12: 5-12 units per acre
R-M: 5-20: 5-20 units per acre 8,000 sq. ft. 30 25 8-10 20 Resident: 1.5
per unit a
Visitor: 1 per
unit b
Maximum height is 30 feet, except
when the building has below grade
parking the maximum is 35 feet.

RMH Up to 12 units per acre 5 acres 30 25 8-10 20 2
C-1 Up to 20 units per acre N/A 35 15 0 0 c Dependent on unit size Residential allowed with CUP.

C-2 Up to 20 units per acre N/A 45 15 c 0
c 0 c
Resident: 1.5
per unit a
Visitor: 1 per
unit b
Residential allowed with CUP.

CH Up to 20 units per acre N/A 35 25 c 15 c 20 c Residential allowed with CUP.

O Up to 20 units per acre 8,000 sq. ft. 35 25 10 20 Residential allowed with CUP.

LM Up to 20 units per acre 8,000 sq. ft. 35 15 c 0
c 0 c Live/work allowed with CUP.

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember SeptemberMarch 20232024 Appendix C C-6
North 40 Specific Plan Residential Development Standards The North 40 Specific Plan consists of three Districts: the Lark District, Transition District, and Northern District.

The Lark and Transition Districts allow for both standalone and mixed-use residential development, while the Northern District allows for residential development only when located above commercial uses as part of a mixeduse development. As adopted, the maximum allowable density in the Specific Plan is 20 units per acre and development capacity is limited to 270 units. The following development standards apply to development in the North 40 Specific Plan:
 Minimum lot area: None
 Maximum lot coverage: The maximum lot coverage for a mixed-use project is 50 percent. There is no lot coverage requirement for standalone residential projects.  Maximum building height: The maximum building height is 35 feet throughout the Specific Plan Area, with the following exceptions:
o 15 percent of development within the Lark District shall be a maximum of 25 feet and two stories in height.
o The maximum height is 45 feet for projects containing at least 40 percent of units affordable to lower income households.
 Setback Requirements:
o Front setbacks on primary streets: The Specific Plan lays out setback requirements for primary streets based on the street and district. The requirements are intended to provide for street trees, public sidewalks, landscape planters, and street parking, in some cases. Setbacks along primary streets range from 12 feet to 30 feet.
o Front setbacks on interior (non-primary) streets:
 For mixed use projects: 12 feet
 For standalone residential projects, front setbacks on interior streets are determined through the Architecture and Site Review process.
o Side and rear setbacks:
 For mixed-use projects: None required, except a 20-foot setback is required when adjacent to a residential use.
 For standalone residential projects, side and rear setbacks are determined through the Architecture and Site Review process.
 Parking Requirements:
o For senior and/or affordable units: 0.5 spaces per unit. o For all other units: one space per one-bedroom unit; two spaces per unit with two or more bedrooms o Guest parking: 0.5 spaces per unit.
o Tandem spaces are permitted for a residential development. o Mixed-use developments may apply for a Shared Parking Reduction through the Architecture and Site Review process. The reduction may be applied to the guest space requirement, but not the base unit requirement.
 Open Space Requirements: A minimum of 30 percent of the site shall be open space.

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-7 o For condominiums: 100 square feet per unit
o For other multi-family residential development: 200 square feet per unit The greatest constraints on development in the Specific Plan Area are the maximum density and development capacity. The Housing Element includes a program to increase the maximum permitted density to 40 units per acre and increase the overall development capacity.

Restricted Commercial Highway (CH) Residential Development Standards The CH zone is intended for development of vehicular-oriented activities and sales along highway frontages, intermingled with compatible retail, service and administrative activities. The applicable General Plan land use category for the CH zone is Mixed Use Commercial.
 Minimum lot area: None
 Maximum lot coverage: The maximum lot coverage is 50 percent for a mixed-use project.  Maximum building height: The maximum building height is 35 feet for a mixed-use project.  Setback requirements for a mixed-use project:

Front 15 feet
Side None required
Rear None required
Side Abutting Street 15 feet
The following minimum yard requirements apply along those property lines of a lot in the CH zone which abut or are across the street from a lot in a residential zone:

Front 25 feet
Side 15 feet
Rear 20 feet Plus, one foot for
each foot of building height
over 20 feet. A six-foot high
masonry wall is required
along the property line.
 Parking requirements for a mixed-use project: One and one-half times the number of living units in such dwellings, as well as one visitor parking space for each residential unit, unless the Planning Commission makes a finding that more or less visitor parking is necessary due to the size or type of housing unit(s).  Open Space Requirements:
o For condominiums: 200 square feet per unit for a ground floor unit. 120 square feet per unit for a dwelling unit above the ground floor.
o Community recreation space: 100 square feet for each dwelling unit.

One of the greater constraints on development in the CH zone is the parking requirements for a mixed-use project. The Housing Element includes a program to initiate amendments to the Town Code to reduce parking requirements for projects near transit, to remove guest parking requirements, and allow parking to be unbundled from residential units.

Multiple-Family Residential (R-M) Residential Development Standards The R-M zone applies to areas served by streets and other public improvements and services which are generally sufficient to sustain multiple residential development, and where the highest and best use of the subject property

HCD Draft Revised Draft 2023-2031 Housing Element
C-8 Appendix C JanuaryNovemberSeptember March 20232024
and surrounding properties is multiple residential. The R-M zone is the major multiple residential zoning district in the Town and is designed to allow various density ranges. The applicable General Plan land use category for the R-M zone is High Density Residential.
 Minimum lot area: 8,000 square feet.
 Minimum lot width: 60 feet.
 Maximum lot coverage: The maximum lot coverage is 40 percent for a residential project.  Maximum building height: The maximum building height is 30 feet for a residential project, except when the building has below grade parking the maximum is 35 feet.  Setback requirements for a mixed-use project:

Front 25 feet
Rear 20 feet
Side, single-family and two-family
dwellings
8 feet
Side, multiple-family dwellings.

Provided that if the wall facing the
side yard contains:
10 feet
a. Bedroom windows 12 feet
b. Living room windows 20 feet
Side abutting street 20 feet
 Parking requirements for a multi-family residential development: One and one-half times the number of living units in such dwellings, as well as one visitor parking space for each residential unit, unless the Planning Commission makes a finding that more or less visitor parking is necessary due to the size or type of housing unit(s).
 Location of buildings and courts:
o 24 feet between buildings, provided that there is 40 feet between any wall of a building; o 20 feet between opposing walls for a court, provided that the opposing walls contain:
 Living room windows, the minimum distance is 40 feet.  Bedroom windows, the minimum distance is 24 feet.
 Recreational open space for multiple-family dwellings:
o For multi-family residential development: 200 square feet per unit. o For condominiums: 200 square feet per unit for a ground floor unit. 120 square feet per unit for a dwelling unit above the ground floor.

One of the greater constraints on development in the R-M zone is the parking requirements for multi-family residential development. The Housing Element includes a program to initiate amendments to the Town Code to reduce parking requirements for projects near transit, to remove guest parking requirements, and allow parking to be unbundled from residential units.

Cumulative Impacts of Development Standards
The Town generally requires two parking spaces per single-family unit (attached or detached) but 2.5 parking spaces (inclusive of guest parking) per multi-family unit. One of the greater constraints on development in the RM zone is the parking requirements for multi-family residential development. The Housing Element includes a program to initiate amendments to the Town Code to reduce parking requirements for projects near transit, to remove guest parking requirements, and allow parking to be unbundled from residential units.

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-9 As for height, the Town permits 30 to 35 feet for housing up to 20 units per acre. This height limit is more than adequate to accommodate the allowable density. Within the new Housing Element Overlay Zone, the Very High Density Residential, Mixed Use Commercial, and North Forty Specific Plan have increased height to 45 feet accommodate the 30 to 40 dwelling units per acre. Furthermore, the Town Code does not limit height by the number of stories. This approach allows the developers the flexibility to accommodate the allowable density and creative design (such as split-levels). The Town Code’s definition of height excludes towers, spires, elevator and mechanical penthouses, cupolas, wireless telecommunication antennas, similar structures and necessary mechanical appurtenances that are not used for human activity or storage. Therefore, the height limit of 45 feet does not impede development of four-story buildings or the achievement of 40 units per acre.

Overall, development standards in Los Gatos (including lot coverage and setbacks) do not impede developers from reaching the maximum allowable density. However, developments in the Town rarely reach the high end of the density range, primarily due to market reasons. For multi-family housing, lower density townhome developments with larger units typically command higher prices and profits. To facilitate a range of housing unit sizes and prices, this Housing Element includes a program action to establish a maximum average unit size for multi-family development over a certain size. This performance standard will moderate unit sizes but still allow developers the flexibility to include some large units.

Housing Types Permitted
The Town regulates the type, permitting requirements, and standards for development, which implements the General Plan and its land use designations, through the Town’s Zoning Ordinance, Chapter 29 of the Municipal Code. This code section identifies residential zoning districts and allowable housing types as summarized in Table C-2 below.

Table C-2 Housing Types Allowed by Zoning District
Zoning District Residential Permitted Uses Residential Uses Allowed with a Conditional Use Permit
Resource
Conservation
Zone
(RC)
 Single-family dwelling, provided that there is
not more than one (1) principal residential
structure on a lot
 Accessory dwelling units
 Junior accessory dwelling units
 Residential care facility, small family home
 Residential care facility-large family home
 Residential care facility-group home
 Caretaker residence
Hillside
Residential (HR)
 Single-family dwelling, provided that there is
not more than one (1) principal residential
structure on a lot
 Accessory dwelling units
 Junior accessory dwelling units
 Residential care facility, small family home
 Residential care facility-large family home
 Residential care facility-group home
 Caretaker residence
Single-Family
Residential
Zone
(R-1)
 Single-family dwelling, provided that there is
not more than one (1) principal residential
structure on a lot
 Accessory dwelling units
 Junior accessory dwelling units
 Residential care facility, small family home
 Residential care facility-large family home
 Residential care facility-group home

HCD Draft Revised Draft 2023-2031 Housing Element
C-10 Appendix C JanuaryNovemberSeptember March 20232024 Zoning District Residential Permitted Uses Residential Uses Allowed with a Conditional Use Permit
Single-Family
Residential
Downtown
Zone
(R-1D)
 Single-family dwelling, provided that there is
not more than one (1) principal residential
structure on a lot
 Two-family dwelling, provided that there is not
more than one (1) principal residential structure
on a lot
 Residential care facility, small family home
 Accessory dwelling units
 Junior accessory dwelling units
 Residential care facility-large family home
 Residential care facility-group home
Duplex
Residential
Zone
(R-D)
 Single-family dwelling
 Two-family dwelling
 Residential care facility, small family home
 Accessory dwelling units
 Junior accessory dwelling units
 Residential care facility-large family home
 Residential care facility-group home
Multiple -
Family
Residential
Zone
(R-M)
 Single-family dwelling
 Two-family dwelling
 Residential care facility, small family home
 Multi-family dwelling
 Transitional Housing facility as defined by
Health and Safety Code section 50675.2
 Accessory dwelling units
 Junior accessory dwelling units
 Residential care facility-large family home
 Residential care facility-group home
 Mobile home park
 Conversion of a mobile park to any other use
Mobile Home
Residential
Zone (RMH)
 Mobile home parks for single-family dwelling
uses
 Residential quarters for use by manager or
other park employees
 Conversion of a mobile park to any other use
Neighborhood
Commercial
Zone
(C-1)
 Residential care facility-small family home
 Residential care facility-large family home
 Residential care facility-group home
 One-family dwelling (in a mixed-use project)
 Two-family dwelling (in a mixed-use project)
 Multiple-family dwelling (in a mixed-use
project)
 Live/work units
Central
Business
District
Commercial
Zone (C-2)
 Single-family and two-family uses, in
conjunction with the other uses permitted in
this section
 Residential care facility-small family home
 Residential care facility-large family home
 Residential care facility-group home
 Multiple-family dwelling (in a mixed-use
project)
 Live/work units
Restricted
Highway
Commercial
Zone (CH)
 Residential care facility-small family home
 Residential care facility-large family home
 Residential care facility-group home
 One-family dwelling (in a mixed-use project)
 Two-family dwelling (in a mixed-use project)
 Multiple-family dwelling (in a mixed-use
project)
 Live/work units
Office  Residential care facility-small family home

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-11 Source: Town of Los Gatos
The Land Use Element of the General Plan sets forth the Town’s policies for guiding local development. These policies, together with existing zoning regulations, establish the amount and distribution of land allocated for different uses within the Town.

The development regulations for land use designations within the Housing Element Overlay Zone (HEOZ) are proposed to be modified in order to accommodate increased density and height to encourage and incentivize residential development. This includes densities for specific land use designations that are increased from what was previously allowed under the 2020 General Plan Land Use Element and described below in Table C-3.

Table C-3 Land Use Categories Permitting Residential Use General Plan
Land Use
Category
Zoning
District(s)
2020 General
Plan Density
(Units Per
Acre)
Density (Units
Per Acre) for
HEOZ Sites
Residential Type(s)
Hillside
Residential
HR 0–1 0–1 Single-family dwelling, provided that there is not more than one (1) principal residential
structure on a lot
Accessory dwelling units
Zoning District Residential Permitted Uses Residential Uses Allowed with a Conditional Use Permit
(O)  Residential care facility-large family home
 Residential care facility-group home
 One-family dwelling (in a mixed-use project)
 Two-family dwelling (in a mixed-use project)
 Multiple-family dwelling (in a mixed-use
project)
 Live/work units
CommercialIndustrial Zone
(LM)
 Live/work units
North Forty
Specific Plan
(NF-SP)
Lark District:
 Townhomes/Garden Cluster
 Rowhouses
 Multi-Family
 Condominiums
 Live/work units
Transition District:
 Townhomes/Garden Cluster
 Rowhouses
 Multi-Family
 Condominiums
 Live/work units
Northern District:
 Multi-Family when located above commercial
 Condominiums when located above commercial
 Live/work units when located above commercial
Lark District:
 Cottage Cluster

HCD Draft Revised Draft 2023-2031 Housing Element
C-12 Appendix C JanuaryNovemberSeptember March 20232024 Junior accessory dwelling units
Residential care facility, small family home *
Residential care facility-large family home *
Residential care facility-group home *
Caretaker residence *
Low Density
Residential
R-1 0–5 0–5 Single-family dwelling, provided that there is not more than one (1) principal residential
structure on a lot
Accessory dwelling units
Junior accessory dwelling units
Residential care facility, small family home
Residential care facility-large family home *
Residential care facility-group home *
Medium Density
Residential
R-1D, R-D,
and R-M
5–12 14–22
Very High Fire
Hazard Severity
Zones: 5–12
R-1D:

Single-family dwelling, provided that there is
not more than one (1) principal residential
structure on a lot
Two-family dwelling, provided that there is not
more than one (1) principal residential
structure on a lot
Residential care facility, small family home
Accessory dwelling units
Junior accessory dwelling units
Residential care facility-large family home *
Residential care facility-group home *
R-D:

Single-family dwelling
Two-family dwelling
Residential care facility, small family home
Accessory dwelling units
Junior accessory dwelling units
Residential care facility-large family home *
Residential care facility-group home *
R-M:

Single-family dwelling
Two-family dwelling
Residential care facility, small family home
Multi-family dwelling
Transitional Housing facility as defined by
Health and Safety Code section 50675.2
Accessory dwelling units
Junior accessory dwelling units
Residential care facility-large family home *
Residential care facility-group home *
Mobile home park *
Conversion of a mobile park to any other use *
High Density
Residential
R-M 12–20 30–40 Single-family dwelling
Two-family dwelling
Residential care facility, small family home
Multi-family dwelling
Transitional Housing facility as defined by
Health and Safety Code section 50675.2

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-13 Accessory dwelling units
Junior accessory dwelling units
Residential care facility-large family home *
Residential care facility-group home *
Mobile home park *
Conversion of a mobile park to any other use *
Mixed-Use
Commercial
CH <20 30–40 Residential care facility-small family home * Residential care facility-large family home *
Residential care facility-group home *
One-family dwelling (in a mixed-use project) *
Two-family dwelling (in a mixed-use project) *
Multiple-family dwelling (in a mixed-use *
project)
Live/work units *
Neighborhood
Commercial
C-1 <20 10–20 Residential care facility-small family home * Residential care facility-large family home *
Residential care facility-group home *
One-family dwelling (in a mixed-use project) *
Two-family dwelling (in a mixed-use project) *
Multiple-family dwelling (in a mixed-use
project) *
Live/work units *
Central Business
District
C-2 <20 20-30 Residential care facility-small family home * Residential care facility-large family home *
Residential care facility-group home *
Multiple-family dwelling (in a mixed-use
project) *
Live/work units *
Office
Professional
O <20 10–20 Residential care facility-small family home * Residential care facility-large family home *
Residential care facility-group home *
One-family dwelling (in a mixed-use project) *
Two-family dwelling (in a mixed-use project) *
Multiple-family dwelling (in a mixed-use
project) *
Live/work units *
Service
Commercial
LM N/A N/A Live/work units *
Light Industrial CM N/A N/A N/A
Public All zones N/A N/A N/A
Open Space RC N/A N/A N/A
Agriculture RC 0–1 0–1 Single-family dwelling, provided that there is not more than one (1) principal residential
structure on a lot
Accessory dwelling units
Junior accessory dwelling units
Residential care facility, small family home *
Residential care facility-large family home *
Residential care facility-group home *
Caretaker residence *
North Forty
Specific Plan
(NF-SP) <20 30–40
* The use is permitted with a Conditional Use Permit.

Source: Town of Los Gatos

HCD Draft Revised Draft 2023-2031 Housing Element
C-14 Appendix C JanuaryNovemberSeptember March 20232024 The Town Code will be modified to add by-right housing as required by State law. Implementation Program BCAP, Zoning for a Variety of Housing Types, will modify the Town Code to allow Transitional and Supportive Housing development by-right in all zoning districts that permit residential uses. The program will also permit byright Permanent Supportive Housing in zones where multi-family and mixed uses are permitted, including nonresidential zones permitting multi-family uses. The CUP requirement for residential care facilities for seven or more is a constraint to housing. Implementation Program BCAP, Zoning Text Amendments for Special Needs Housing,also includes a Zoning Code amendment to allow group homes of seven or more by right in all residential zones conforming with HCD’s Group Home Technical Advisory (December 2022), no longer requiring a CUP. Implementation Program BC has added and a zoning amendment to 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.).

Overlay Zones
Four Currently there are three overlay zones in the Town Code, the Planned Development (PD) zone, the Landmark and Historic Preservation (LHP) zone, the Affordable Housing Overlay Zone (AHOZ), and the Public School Zone (PS), that apply to housing development in Los Gatos.

Planned Development (PD)
The PD overlay zone was updated in 2018 and is intended to preserve, enhance, and/or promote development that highlights the Town’s characteristics. This includes natural and historic resources, production of affordable housing, maximization of open space, and projects that provide a public benefit to the Town’s citizens. As an incentive to housing development, the PD overlay 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.

Landmark and Historic Preservation (LHP)
The LHP overlay zone designation is applied to individual sites, structures, or areas deemed as architecturally or historically significant. There are five designated LHP overlay zones within the Town, including the Almond Grove, Downtown Commercial, Fairview Plaza, and University-Edelen districts. Existing and proposed structure(s) within these LHP overlay zones are subject to a special design standard and review process regarding their appearance, use, and maintenance before the Historic Preservation Committee.

Affordable Housing Overlay Zone (AHOZ)
The AHOZ is intended to increase the supply and variety of housing types to promote tenure and affordability.

The AHOZ promotes densities, development standards and incentives that will encourage the production of housing affordable to all income levels of the Town's RHNA allocation. The properties can be developed consistent with the AHOZ development standards, densities and incentives or under the existing zoning requirements, but not both. The 2023-2031 Housing Element lists the one property, the Southbay Development located on Knowles Drive, east of Winchester Boulevard as a key housing opportunity site for a mixed income affordable housing project. The designation of this site will assist the Town in meeting its fair share of the region’s housing needs required by the State.

The AHOZ permits development at a density of 20 units per acre by-right, with an Architecture and Site approval, for projects in which at least half of the units are affordable to lower or moderate-income households. The AHOZ provides a 30-foot building height with an automatic allowance for 35 feet for integrated (first floor) garage or podium parking. Additional height can be granted through the Architecture and Site Plan review process. The 40 percent lot coverage and parking reduction is consistent with the State Density Bonus maximum parking requirements. Further parking reductions are allowed for properties within a quarter mile of the planned Vasona Light Rail Station, for senior-only housing and housing for persons with disabilities. All other property development standards are consistent with the Town's R-M Standards.

The AHOZ also allows up to four automatic concessions. The concessions include reductions in:
 Parking: one space for studio and one-bedroom units, two spaces for three-to-four-bedroom units, 2.5 spaces for four or more-bedroom units, one space for units reserved for seniors or persons with disabilities, reduction to one space per unit for developments within one-quarter mile to the proposed Vasona Light Rail Station.  Setbacks: Any two property setbacks may be reduced by up to 50 percent.

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-15  Increase in lot coverage: The lot coverage may be increased up to 50 percent from 40 percent.  Processing fees: The Town shall waive or defer planning, engineering, and building processing fees, except those that are paid directly to Town consultants or for technical studies.

The developer can select one of the following types of fees to be waived as one of the four available concessions:
a. Planning and engineering application fees (but not Town consultant fees). b. Building plan check and inspection fees.
c. Construction mitigation fees.
 Priority processing: The Town gives projects the highest processing priority for planning entitlements, building plan check and building inspections.

The Valley Transportation Authority has deferred the development of the Vasona Light Rail Station indefinitely.

Given this recent development, the Town will initiate a Code amendment to reduce parking within a quarter mile of transit stops as a further development incentive in the AHOZ.

Public School Zone (PS)
The PS Overlay Zone is intended to allow school buildings to be used for community and educational purposes, such as museums, community centers, and nurseries, without extensive exterior modifications. Any land owned by a public school district may be designated as a PS overlay zone.

Housing Element Overlay Zone (HEOZ)
In order to increase opportunities for housing development throughout the Town, the Housing Element programs includes creation of the HEOZ. The intent of the HEOZ is to provide modified development regulations for sites identified in the sites inventory, including increased density and height requirements, to encourage residential development. Table C-3 summarizes the maximum densities to be provided by the HEOZ in comparison to the maximum density currently permitted by the 2020 General Plan and the base zoning designation. In addition to increased densities, the HEOZ will allow for increased height and other flexibility in development standards to ensure that development is achievable at the desired maximum density.

Table C-3 Proposed HEOZ Densities by Underlying Land Use and Zoning Designation General Plan Land Use
Designation Zoning Designation 2020 General Plan Density(units/acre) Proposed Density for HEOZ
Sites (units/acre)
Medium Density Residential R-1D, R-D, and R-M 5–12 14–22; VHFHS Zones*: 5–12
High Density Residential R-M 12–20 30–40
Mixed-Use Commercial CH <20 30–40
Neighborhood Commercial C-1 <20 10–20
Central Business District C-2 <20 20-30
Office Professional O <20 10–20
North Forty Specific Plan (NF-SP) <20 30–40
* VHFHS Zones = Very High Fire Hazard Severity Zones
Multi-family Housing
Multi-family housing is permitted in a residential zone, including the R-M zone and is permitted in a mixed-use development with a Conditional Use Permit (CUP) in the following commercial zoning districts, C-1, C-2, and CH zones. One of the intents of these districts is to direct and facilitate housing of various density ranges. A permitting process that is more onerous or uncertain for multi-family units than for single-family presents a concern and could be considered a constraint on multi-family housing. In the R-M zone, the Town requires apartments include one and a half parking spaces per unit, regardless of the number of bedrooms in the unit, plus one visitor parking space for each apartment unit, unless the Planning Commission makes a finding that more or fewer visitor parking is necessary due to the size or type of housing unit(s). As previously noted, the Housing

HCD Draft Revised Draft 2023-2031 Housing Element
C-16 Appendix C JanuaryNovemberSeptember March 20232024 Element includes a program to reduce the parking requirements for multi-family projects in order to remove this constraint.

A CUP can increase risk and costs associated with the planning entitlement process act as a deterrent to housing developers. Long permit processing times or permit processes that have a high degree of uncertainty (i.e., discretionary reviews or processes with multiple public meetings) increase the cost of housing for developers, either by increasing their carrying costs as they wait for permits, or by increasing the chance that a project will be rejected after a long wait. In either case, a developer working in a jurisdiction with an onerous permitting process will demand higher profits to account for the increased risk, thereby increasing the overall development costs. In order to remove this regulatory constraint, the Housing Element includes an Implementation Program to remove the requirement for a CUP for residential development in zoning districts that currently allow multi-family uses with a CUP.

In Los Gatos, the predominant housing type in the Town is single family development which are allowed by right in the R-M zone. When single family residences are allowed in higher density residential zoning districts, the likelihood and ability of a developer constructing higher density residential units is diminished. Housing developers face higher risk, including neighborhood opposition, when single-family homes are present in multifamily zoning districts. As part of the new HEOZ, the Town will implement required minimum densities on HEOZ sites in order to address this potential constraint. Specifically, sites identified for accommodating lower income RHNA will have a minimum density of 20 units per acre as required by State law.

Manufactured Housing
Manufactured, otherwise known as prefabricated or factory-built, housing is constructed off-site and then transported to the property. It is allowed in all residential districts in Los Gatos subject to its compliance with Town regulations.Manufactured homes are houses that are transportable, built on a permanent chassis, and designed for use with or without a permanent foundation when attached to required utilities. Manufactured housing is also known as prefabricated, or factory-built homes. Manufactured homes do not include recreational vehicles. Due to the much lower cost of construction and labor costs needed to build a manufactured home, this housing type provides an affordable solution. Manufactured homes installed on permanent foundation are permitted by-right on all residentially zoned parcels. Examples of manufactured homes built in the Town have included ADU’s, single-family homes, multi-family homes, and mobile homes.

Mobile Homes and Mobile Home Parks
Mobile homes are an affordable housing resource in the Town of Los Gatos. Mobile home parks are defined as “an area of land where two (2) or more mobile home sites are rented, or available for rent, to accommodate mobile homes used for human habitation, including areas of land zoned or otherwise approved for use as a mobile home park pursuant Chapter 29 of the Town Code or as defined in Health and Safety Code section 18214 (as it may be amended).

Mobile home parks are permitted with a conditional use permit in the Multiple-Family Residential Zone (R-M) and permitted by-right in the Mobile Home Residential Zone (RHM).

Mobile homes are often owned by seniors, households on fixed incomes, and households within the lower and moderate-income categories. Mobile home tenants are in the unique position of having made a substantial investment in a housing unit for which ground space is rented. The Town’s Mobile Home Ordinance establishes rent increase control within mobile home parks to ensure that a variety of housing types, including mobile homes, remain viable options to lower and moderate-income households in the community. Rents in mobile home parks cannot be increased by more than five percent annually unless operations and maintenance expenses significantly increased within the most recent year in comparison to the previous year.

Mobile home parks are a valuable source of affordable housing. The Town currently has two mobile home parks within the Town boundaries. The Housing Element includes a program to continue to monitor, preserve, and retain affordable housing units in the Town, including mobile homes.

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-17 Transitional and Supportive Housing
Transitional housing refers to a housing facility with buildings configured as rental housing developments, but operated under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient at some predetermined future point in time, which shall be no less than six (6) months as defined by Health and Safety Code section 50675.2(h). Currently transitional housing is allowed by-right in the Town’s Multiple-Family Residential zone (R-M). According to California Health and Safety Code Section 50675.14, supportive housing is housing that is linked to on- or off-site services and is occupied by low-income persons with mental disabilities, chronic health issues or substance abuse issues, or persons with disabilities that were developed before age 18. Supportive housing has no limit on the length of stay for tenants.

Supportive housing in Los Gatos consists of small family home residential care facilities, which are permitted in all residential zoning districts except Mobile Home Residential (RMH). In Los Gatos, licensed residential care facilities for six or less persons are allowed by-right in all residential districts consistent with California Health and Safety Code Section 1267.8.

As part of the Housing Element Update the Town has included Implementation Program BCAP , Zoning Text Amendment for Special Needs Housing, that will update the Zoning Code to allow transitional housing and supportive housing developments by-right in all zoning districts that permit residential (per SB 2). The program will update the Municipal Code to accommodate the by-right, streamlined, ministerial review of supportive and transitional housing developments as mandated by Assembly Bill (AB) 2162 (2019). AB 2162 requires local jurisdictions to permit the development of transitional/supportive housing by-right in any zoning district that permits multi-family and mixed uses. Additionally, jurisdictions must provide a ministerial review of transitional and supportive housing developments that only reviews these developments against standards for residential uses in that same district. As part of this streamlined, ministerial review, the Town will be required to notify applicants of their eligibility for streamlining within 30 days of application submittal. Proposed developments of up to 50 supportive housing units must be reviewed completely within sixty (60) days while developments proposing more than 50 units must be reviewed within one hundred and twenty (120) days.

Accessory Dwelling Unit (ADU)
Accessory dwelling units are complete independent housing units that can be either detached or attached from an existing single-family residence. Based on their relatively small size, and because they do not require paying for land or major new infrastructure, ADUs are considered affordable by design. ADUs can provide affordable housing options for family members, seniors, students, in-home health care providers, and other small household types. ADUs can also be useful to generate additional rental income for the homeowner, making homeownership more financially feasible.

In 2020 the Town adopted Ordinance 2307, amending the Town Code to further address barriers to the development of ADUs and to conform with a series of State bills aimed at encouraging single-family homeowners to add ADUs to their property. Permitted zones allowing the ADUs include the R-1, R-D, R-M, R-1D, RMH, HR and RC zones. The Town’s ADU Ordinance allows a 10 percent increase in the floor area ratio standards for an ADU. All detached units must comply with lot coverage maximum of their designated zone. ADUs are not to exceed 1,200 square feet and a minimum of 800 square feet must be allowed. One parking space is required per unit or bedroom, unless the ADU is located within half a mile of a transit stop. The Housing Element includes a program to directs the Town to amend the existing ADU ordinance to be consistent with State law by the end of 2023. Over the past three years (2020-2023), the Town has averaged 32 issued ADU building permits per year.

As a conservative assumption, this Housing Element projects only 25 ADUs per year for 200 ADUs over eight years.

Accessory Dwelling Unit Incentives
Streamlined ADU Permitting Process and Elimination of Planning Fees In response to changes in State law, and as part of the Town’s ongoing efforts to increase efficiency for permit reviews, the Planning and Building Divisions have developed a new streamlined ADU Building permit application form and process. Residents who wish to build a new ADU or JADU can now submit a single application form and proceed through a single plan review process in order to obtain their Building Permit. The ADU planning fee has also been eliminated to provide an incentive to property owners.