Los Gatos City Council
February 6, 2024

HCD Draft Revised Draft 2023-2031 Housing Element
C-12 Appendix C JanuaryNovemberSeptember March 20232024 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
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 *

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-13 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
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

HCD Draft Revised Draft 2023-2031 Housing Element
C-14 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 *
North Forty
Specific Plan
(NF-SP) <20 30–40
* The use is permitted with a Conditional Use Permit.

Source: Town of Los Gatos
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

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-15 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.  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

HCD Draft Revised Draft 2023-2031 Housing Element
C-16 Appendix C JanuaryNovemberSeptember March 20232024 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 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

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-17 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.

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

HCD Draft Revised Draft 2023-2031 Housing Element
C-18 Appendix C JanuaryNovemberSeptember March 20232024 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.

Addition of 10 Percent FAR for ADU’s
In addition to complying with recent State legislation, the Town’s ADU ordinance also provides incentives to property owners by allowing an additional 10 percent in the FAR standards for all structures, excluding garages, for an ADU (minimum 800 square feet and maximum 1,200 square feet). This additional 10 percent can only be used for an ADU.

Waive Building Fees – Deed Restricted ADU
In order to further incentivize production of very low- and low-income ADU units, a program to eliminate Building fees if the unit is deed restricted for very low- and low-income households has been included in Implementation Program Q.

Pre-Approved ADU Plans
Implementation Program Q describes how the Town will develop three different pre-approved, “model” plans for ADUs that meet building and fire codes, height, and size requirements, including designs that are ADA accessible. The Town will work with the Santa Clara County Planning Collaborative on options to create a subregional program of pre-approved ADU plans that are available to all residents and cities in Santa Clara County.

The Town may also use models developed by other cities. The Town will conduct a media campaign to promote the pre-approved plans and plans will be available on the Town’s website.

ADU Marketing
The Town will implement a marketing program, for homeowners, on the benefits of ADU’s and the availability of resources (templates, cost calculators, technical support) to support ADU housing development through Implementation Program Q.

Building and Code Compliance
In addition to the General Plan land use designations and Town Code, Los Gatos has recently adopted updated building codes that enforce Town regulations with the purpose of protecting the lives, health, property, and public welfare of Los Gatos residents. Each Code is an enforcement of State and local standards and is not considered a constraint on housing production in Los Gatos. The following 2022 California Building Standards Codes have been adopted, as amended by the Town:
 Part 1 California Administrative Code.
 Part 2 California Building Code, Volumes 1 and 2, including Appendices I and J (local amendments).  Part 2.5 California Residential Code including Appendices AH, AK, AO, AQ, AX, and AZ (local amendments).
 Part 3 California Electrical Code.
 Part 4 California Mechanical Code.
 Part 5 California Plumbing Code including Appendices A, B, D, G, I, K, and L (local amendments).  Part 6 California Energy Code.
 Part 8 California Historical Building Code including Appendices A.  Part 9 California Fire Code (local amendments).
 Part 10 California Existing Building Code including 2021 International Existing Building Code Chapter 14, as well as Appendices A2, A3, A4, and A5.

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-19  Part 11 California Green Building Standards Code (CALGreen) Chapters 1 through 8 only (local amendments).
 Part 12 California Referenced Standards Code.
 2022 International Property Maintenance Code.

The Town also has a Code Compliance Officer that enforces the Town’s zoning regulations and building and safety codes. The program reviews and responds to code complaints. The Town has adopted the 2021 International Code for Property Maintenance and the 2022 California Existing Building Code, including 2021 International Existing Building Code Chapter14 and Appendices A2, A3, A4, and A5. Affordable units developed under the Below Market Price (BMP) Program must undergo an annual compliance audit.

On- and Off-Site Improvements
The Town requires standard on- and off-site improvements for development, which are intended to meet health and safety requirements of the community. Required improvements may include the dedication and construction of public streets, alleys, utility infrastructure, or other facilities required to maintain public safety and convenience.

The Town’s standards and requirements for streets, sidewalks, and other site improvements are found in the Municipal Code. These standard improvements are not considered a constraint on development because the Town does not include improvements beyond what is required to meet health and safety requirements. While on or off-site improvements may increase the costs of developing housing, such improvements are necessary to adequately provide the infrastructure and public facilities needed to support housing development. This infrastructure and these facilities are critical to balancing the health and safety of the public, with the development needs of the Town, without hindering housing development. Subdivision design standards for the Town, described in the Town Code starting at Section 29.10.06701, include the following on- and off-site improvements:
 Parking bays may be required on narrow streets where parking may be prohibited on either or both sides of the street.
 Roadways must be paved with asphalt concrete.
 Sidewalks are required on all streets in a subdivision unless the lots will be 20,000 feet in size or more.  Curbs and gutters must be constructed on all streets.  Culverts, storm drains, and drainage structures will be required in a subdivision.  Sanitary sewers with house service laterals are required to serve each lot, with some exceptions in hillside areas.
 Underground utilities with connections are required for each lot.  Street lighting shall be installed in accordance with Town standards Design Guidelines
The Town has adopted Residential Design Guidelines for single-family and two-family dwelling units, which incorporate the Town’s previous Residential Pre-1941 Design Guidelines for historically significant structures, sites, and historic districts in Los Gatos. The Town has also adopted Hillside Development Standards and Guidelines. These sets of development standards and design guidelines are used in the development and design review process for Los Gatos and complement the Town’s zoning regulations. The Hillside Development Standards and Guidelines were adopted in January 2004 and modified in 2020. The Residential Design Guidelines were updated and adopted in 2008.

Residential Design Guidelines
Residential Design Guidelines in Los Gatos address the following design characteristics for single-family and twofamily dwelling units in all zoning districts except for the RC and HR zones:
 Historic Designations. When necessitated by the designating ordinance, Historic Preservation Committee review of a development is required for developments that affect a historically designated property or are located in a historic district.

HCD Draft Revised Draft 2023-2031 Housing Element
C-20 Appendix C JanuaryNovemberSeptember March 20232024  Site Development. This section focuses on the design and layout of the housing development in relation to its site. Site planning issues addressed include site design, solar orientation, shadow effect, and easements and dedications. This section provides information on landscaping requirements, sensitivity to adjacent neighbors, and conformity to neighborhood street and sidewalk edges.  Building Design. This section focuses on the design and layout of development in relation to the surrounding neighborhood. Issues addressed include harmony and compatibility with the streetscape and surrounding structures; the scale and mass of the development including second-story additions, significant remodels, demolitions and replacement structures, exterior material and colors, building components, energy conservation, and privacy. Neighborhood compatibility for replacement structures shall be based on the following criteria:
 Existing architectural style of surrounding neighborhood.  Size of the lot on which the development is located.
 Size of homes adjacent to the development and along the street on which the development is located.
 Transitioning neighborhood.
 Impacts on the site and surrounding property.
 Landscaping/Open Space. This section addresses tree preservation in accordance with Division 2 of the Town Code for adherence to the Town’s Tree Protection Ordinance.

The Los Gatos Residential Design Guidelines promote safe, compatible, and well-designed housing in Los Gatos.

These standards are not a constraint on single-family and two-family housing development.

Hillside Development Standards and Guidelines
The Hillside Development Standards and Guidelines are consistent with the Town’s policies and complement and coordinate with the Town’s Hillside Specific Plan. These standards and guidelines apply to all areas zoned HR, RC, and some lots zoned R-1 as noted on the Town’s Hillside Area Map. The goal of these standards and guidelines is to encourage high-quality design that incorporates sustainable development and open space preservation.

The following summarizes the Hillside Development Standards and Guidelines for Los Gatos:
 Constraints Analysis and Site Selection. Developers must conduct a constraints analysis as deemed necessary by the Town, consult with neighbors, meet with Town staff to discuss the development site, and conduct a view analysis for the development site. The constraints analysis, as required by the Town, requires that developers of hillside property identify the Least Restrictive Development Area (LRDA), or areas deemed most feasible for development on hillsides. For the view analysis, developers must analyze aesthetic impacts; preserve hillside and ridgeline views; and preserve natural features, riparian corridors, and wildlife.  Site Planning. This section describes site planning standards and guidelines that minimize physical and aesthetic impacts to the site topography. Standards and guidelines discuss grading, drainage, driveways and parking, and safety regarding geologic and fire hazards.  Development Intensity. This section outlines the maximum allowable floor area of development based on lot size.
 Architectural Design. The following architectural design characteristics are addressed in this section:
 Neighbor-friendliness.
 Sustainability.
 Fire safety.
 Building height.
 Bulk and mass.
 Roofs.
 Architectural features and detailing.

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-21  Materials and colors.
 Site Elements. The specific elements of a hillside development site are addressed:
 Fences and walls.
 Driveway entries.
 Retaining walls.
 Outdoor lighting.
 Accessory buildings, swimming pools, and sport courts.  Impervious surfaces.
 Landscape Design. Because hillside sites are more prone to erosion, landslides, mudslides, and fire and water hazards than flatter sites in Los Gatos, the following concepts are addressed in the landscaping standards and guidelines for hillside development:
 Fire safety.
 Garden and turf locations and plant selection.
 Irrigation.
 Impervious surfaces.
 Plant materials.
 Tree preservation.
 Planned Development Projects. This section describes standards and guidelines that relate specifically to hillside Planned Developments (PDs) in Los Gatos. Additional restrictions are placed on the LRDA for PDs.

This section includes standards and guidelines focusing on site preparation, drainage, lot configuration and building locations, street layout and driveways, and trail design.

Objective Design Standards
On November 15, 2022, the Town Council adopted the Objective Design Standards. The Town of Los Gatos developed Objective Design Standards for the review of multi-family housing and mixed-use development applications. This effort was in response to State legislation requiring jurisdictions to adopt objective standards and to implement them in a streamlined review of qualifying housing projects. Objective standards are defined under State law as “standards that involve no personal or subjective judgement by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal” (California Government Code, Section 65913.4).

The purpose of the Objective Design Standards is to ensure that new qualifying multi-family and mixed-use projects in Los Gatos provide high-quality architecture, integrate with surrounding development, and include welldesigned amenities and open spaces. The Objective Design Standards will:
 Comply with recent State housing legislation.
 Implement streamlined and ministerial review processes for qualifying projects.  Ensure that qualifying projects align with the Town’s expectations and vision to maintain and support the character of the Town.
 Provide a set of clear criteria to guide development.  Establish an objective framework by which a qualifying project will be evaluated.

Governmental Fees and Exactions
Government policy at both the State and jurisdictional levels play a major role in determining the costs of building new housing. Regulations and permitting processes that result in lengthy or uncertain development carry higher

HCD Draft Revised Draft 2023-2031 Housing Element
C-22 Appendix C JanuaryNovemberSeptember March 20232024 risk and increased financing. Additionally, frequent delays in the entitlement and approval process directly increase costs, such as additional architectural work, inspections, and community meetings.

Streamlining permitting processes, applying permit application processes consistently, increasing interdepartmental cooperation, having adequately funded and staffed planning departments, and increasing byright housing are all actions jurisdictions can take to reduce the constraints represented by fees and permit processing times.

Governmental fees can be a significant portion of the cost of housing development and can therefore be considered a constraint to housing development. Table C-3 54 and Table C-4 65 below provides all of the planning and development fees that may apply to residential development projects in Los Gatos, while Table C-4 shows how these fees are applied to threetwo specific projects. Fees are due at the time an application is accepted by the Town, except for projects in the Affordable Housing Overlay Zone, which can waive or defer their fees as a development incentive.

Development fees are a standard component of new construction. Although these fees can add to the cost of residential development, they are necessary for new development to pay its fair share of municipal services and infrastructure for new development. Without adequate development fees, the Town would be unable to serve future growth with adequate municipal services.

According to the Town of Los Gatos’ Community Development Department Planning Division, developing a new single-family home (non-hillside) in Los Gatos typically costs about $12,908 in planning fee plus an additional deposit of $2,500 for review by the Town’s consulting architect and a deposit of $2,200 for a review by the Town’s consulting arborist. The fee for a new two-family unit is $17,178. Multi-family units, three or more units typically cost $17,715 in planning fees and the same consulting architect and arborist fees are applicable. These fees include Planning Commission or Design Review Committee approval, fees associated with a Planned Development that does not require a General Plan or Specific Plan amendment, and fees related to finalizing the map and Certificate of Compliance.

Table C-4 summarizes all of the development and permit fees required for residential development in the Town, including planning, building, public works, and external agency fees. It is important to note that fees vary based on project specifics, such as project valuation, square footage, and site characteristics. The table below provides fees for a recent single-family project, and mixed-use project, and multi-family project within the Town. The applicant will be required to pay approximately $101,608 in Town and external agency fees for development of a new detached single-family home. For a mixed-use project with ninethree residential units, the total fees were $289,695$380,19. When divided among the units, this equates to $96,565$42,2 per unit; however, the fees presented below are for the project in its entirety (including the commercial portion). For a multi-family project with three residential units, the total fees were $223,825. When divided among the units, this equates to $74,608 per unit; however, the fees presented below are for the project in its entirety. Notably, external agency fees, specifically school fees and sewer connection fees, comprise a significant portion of the total project fees (43 percent). Not only are these fees necessary to ensure ongoing provision of vital infrastructure and services, but the Town has no control over the fee amounts as they are set by the external districts.

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-23 Table C-4 Typical Fees for Single-Family and Multi-Family Development Application Fees by Town
Department
Single-Family
Detached
(2,500 sq. ft.)
Mixed-Use
Project 1
(93 residential
units)
Multi-Family
Project
(3 residential
units)
Town Fees
Planning
Permit Application Fee (flat fee) $12,908 $17,715 $17,715 Tentative Parcel Map N/A $16,814 $16,814
Consulting Architect Fee $2,500 $2,500 2 $2,500 2
Consulting Arborist Fee $2,200 $2,200 $2,200
Public Works
Grading Permit $16,061 $84,191 $84,191
Final Parcel Map N/A $4,117 $4,117
Surveyor Deposit for Final Parcel Map N/A $3,000 $3,000 Encroachment Permit $1,542 $1,542 $1,542
Public Improvement Plans/Permit N/A $29,724 $29,724
Supplemental Deposit $1,000 $1,000 $1,000
Geotech Review Fee 2 $750 $900 $900
Geotech Review Deposit $3,750 $3,600 $3,600
Performance Bond 100% 100% 100%
Labor Bond 100% 100% 100%
Building
Demolition Permit $563 N/A $563
Building Permit Fee $9,644 $9,604 $16,620
Building Permit Issuance Fee $55 $55 $165
Plan Check Fee $6,268 $6,619 $10,803
Additional Plan Check Fee (After 2
plan review cycles) $240 $600 $2,520
Electrical, Plumbing, Mechanical $1,857 $5,289 $1,065
Planning Plan Check Fee $1,940 $1,932 $3,339
Engineering Plan Check and Review $798 $795 $1,380
Construction Activities Mitigation –
Residential $1,718 $6,441 $9,327
Construction Activities Mitigation –
Garage
$790 N/A N/A
Construction Activities Mitigation –
Commercial N/A $2,943 N/A
Capital Improvement Tax $264 $991 $1,575
Underground Utility Tax $264 $991 $1,129
Storm Drainage $1,468 $2,515 $4,090
Park Fund Tax $59 $220 $251
General Plan Maintenance Fee $7,000 $6,953 $9,750
State Building Standards $56 $56 $78
NPDES $70 $70 $210

HCD Draft Revised Draft 2023-2031 Housing Element
C-24 Appendix C JanuaryNovemberSeptember March 20232024 California Title 24 Part 2 Fee $1,455 $1,449 $2,505
SMIP – Category 1 Residential $182 $181 $253
SMIP – Category 2 Commercial N/A $389 $0
Non-Town Agency Fees
School Fees
Los Gatos Union School District ($3.48
per sq. ft.) $8,700 $21,631$50,502 $14,420
Campbell Union High School District
($1.44 per sq. ft.) $3,600 $8950 $20,897 N/A
Sewer
Permit Fee (assuming Sewer Lateral
Inspection) $425 $5,000 $27,383
Connection Fee ($10,786 per SF unit;
$8,351 per Mixed-Use unit) ; $10,786
per MF unit)
$10,786 $25,053$75,159 $32,358
Sewer Treatment Plant Capacity Fee
($1,642 per SF unit; $1,271 per
Mixed-Use unit) ; $1,642 per MR unit)
$1,642 $11,439 $4,926
Fire Department
Fire Plan Check ($0.0016 of Valuation) $1,053 $2,225 $3,120 Totals
Subtotal - Town Fees $75,402 $215,397 $141,618
Subtotal - Non-Town Agency Fees $26,206 $74,298$165,22
2 $82,207
Total Fees $101,608 $289,695$380,1
9 $223,825
Total Fees per Unit $101,608 $96,565$42,2 $74,608
Notes:

1. Fees are for the total development, including the commercial portion of the project. Due to the existing fee structure, it is difficult to separate out fees for residential units from the project as a whole.

2. Dependent upon the size of the structure, a larger deposit may be required

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-25 Table C-354 Community Development Department Fees Effective July 1, 2022 Application
Fee
4% Permit
Tracking Fee
10%
General
Plan
Update
10% Advance
Planning
Special
Project
Engineering
Dev Review
Services Fee
Total Fee
1 ZONING APPROVALS
A Architecture and Site Applications
1 Development Review Committee (DRC) Approval
a. New single-family
detached (HR & RC
zone)
$9,508.00 $380.32 N/A $950.80 $4,396.00 $15,235.12
b. New single-family
detached (HR & RC
zones) per unit, as
part of a Planned
Development
$6,603.00 $264.12 N/A $660.30 $4,393.00 $11,920.42
c. New single-family
or two-family units $6,552.00 $262.08 N/A $655.20 $4,394.00 $11,863.28 d. New single-family
or two-family (any
other zone) per unit,
as part of a Planned
Development
$4,682.00 $187.28 N/A $468.20 $4,398.00 $9,735.48
e. Minor projects (a
development
proposal that does
not significantly
change the size,
mass, appearance or
neighborhood
impact of a
structure, property
or parking lot)
$2,375.00 $95.00 N/A $237.50 $3,374.00 $6,081.50
2 Planning Commission Approval
a. Supplemental fee
for DRC applications
as determined in
Section 1.A.(1) or
minor residential
development
applications that
require Planning
Commission
approval
$3,355.00 $134.20 N/A $335.50 $1,225.00 $5,049.70
b. New two-family
unit $9,994.00 $399.76 N/A $999.40 $4,396.00 $15,789.16 c. New
nonresidential $11,471.00 $458.84 N/A $1,147.10 $4,396.00 $17,472.94 d. New multi-family $10,428.00 $417.12 N/A $1,042.80 $4,394.00 $16,281.92 e. All other $5,815.00 $232.60 N/A $581.50 $4,396.00 $11,025.10 B Conditional Use Permits
1 Conditional Use
Permit $6,726.00 $296.04 N/A $672.60 $1,431.00 $9,098.64 C Variance $4,947.00 $197.88 N/A $494.70 $1,431.00 $7,070.58 D Rezoning (other than Planned Development

HCD Draft Revised Draft 2023-2031 Housing Element
C-26 Appendix C JanuaryNovemberSeptember March 20232024 Application
Fee
4% Permit
Tracking Fee
10%
General
Plan
Update
10% Advance
Planning
Special
Project
Engineering
Dev Review
Services Fee
Total Fee
1 Without General
Plan or Specific Plan
Amendment
Actual Cost
($5,000 min.) $200 (min.) $500 (min.) $500 (min.) N/A $6,200.00 2 With General Plan or
Specific Plan
Amendment
Actual Cost
($7,000 min.) $280 (min.) $700 (min.) $700 (min.) N/A $8,680.00 E Planned Development
1 Without General
Plan or Specific Plan
Amendment
Actual Cost YES YES YES N/A Varies
2 Without General
Plan or specific Plan
Amendment (HR or
RC Underlying Zone)
Actual Cost YES YES YES N/A Varies
3 With General Plan or
Specific Plan
Amendment
Actual Cost YES YES YES N/A Varies
4 With General Plan or
Specific Plan
Amendment (HR or
RC Underlying Zone)
Actual Cost YES YES YES N/A Varies
5 Town Council
Modification to a
Planned
Development
Actual Cost
($5,000 min.) $200 (min.) $500 (min.) $500 (min.) N/A $6,200.00 6 DRC Modification to
a Planned
Development Zone
Actual Cost
($3,000 min.) $120 (min.) $300 (min.) $300 (min.) N/A $3,720.00 7 Publication costs for the Planned Development Ordinance shall be paid by the applicant. 8 Transcription Fee of
PC Minutes
Actual Cost
($500 Deposit) N/A N/A N/A N/A Varies
F Minor Residential
Development $2,375.00 $95.00 N/A $237.50 N/A $2,707.50
G Agricultural Preserve
Withdrawal $4,035.00 $161.40 N/A $403.50 N/A $4,599.90
H Planning Division Certificates of Use and Occupancy
3 Use/occupancy
clearance if
Conditional Use
Permit is required or
occupancy of a new
secondary dwelling
unit
No fee No fee No fee No fee No fee No fee
M Mobile Home Park
Conversion Permit
Actual Cost
($5,000 deposit) Varies Varies Varies N/A Varies
N General Plan/Town
Code Amendments
Actual Cost
($5,000 deposit) N/A N/A N/A N/A Varies
O Administrative Land Use Permit
P Two-Unit Housing
Development $1,340.00 $53.60 N/A $134.00 N/A $1,527.60
Q Urban Lot Split $1,340.00 $53.60 N/A $134.00 N/A $1,527.60 2 SUBDIVISIONS

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-27 Application
Fee
4% Permit
Tracking Fee
10%
General
Plan
Update
10% Advance
Planning
Special
Project
Engineering
Dev Review
Services Fee
Total Fee
A Lot Line Adjustment
(DRC Approval) $2,254.00 $90.16 N/A $225.40 $3,782.00 $6,351.56 B 4 Lots or Less (DRC
Approval) $9,081.00 $363.24 $908.10 $908.10 $4,194.00 $15,454.44 C
4 Lots or Less (as
part of a Planned
Development) (DRC
Approval)
$3,750.00 $150.00 $375.00 $375.00 $4,398.00 $9,048.00
D 5 Lots or More $10,230.00 $409.20 $1,023.00 $1,023.00 $5,420.00 $18,105.20 E
5 Lots or More (as
part of a Planned
Development) (DRC
Approval)
$4,397.00 $175.88 $439.70 $439.70 $5,420.00 $10,872.28
F Vesting Tentative
Map
Actual Cost
($500 deposit) N/A N/A N/A N/A Varies
G
Lot Merger and
Reversion to Acreage
(DRC Approval)
$1,117.00 $44.68 $ N/A $111.70 $3,781.00 $5,054.38
H Condominium $7,884.00 $315.36 $788.40 $788.40 N/A $9,776.16 I
Condominium (as
part of a Planned
Development)
$3,750.00 $150.00 $375.00 $375.00 N/A $4,650.00
J
Certificate of
Compliance (DRC
Approval)
$3,257.00 $130.28 N/A $325.70 $2,350.00 $6,062.98
K
VTM applications
that require Town
Council
approval and/or DRC
applications that
require Planning
Commission
approval. This
fee supplements the
above established
fees.
$2,991.00 $119.64 N/A $299.10 N/A $3,409.74
3 MISCELLANEOUS APPLICATION FEES
A
Time Extensions to
Approved
Applications
(excluding fees based
on actual cost)
50% of Current
Fee Varies Varies Varies Varies Varies
B
Modification of
Approved
Application
(excluding fees based
on actual cost)
75% of Current
Fee Varies N/A Varies Varies Varies
D
Conceptual
Development
Advisory Committee
Review
$2,966.00 $118.64 N/A $296.60 N/A $3,381.24

HCD Draft Revised Draft 2023-2031 Housing Element
C-28 Appendix C JanuaryNovemberSeptember March 20232024 Application
Fee
4% Permit
Tracking Fee
10%
General
Plan
Update
10% Advance
Planning
Special
Project
Engineering
Dev Review
Services Fee
Total Fee
1 CDAC Special
Noticing
Actual Cost
($500 Deposit) N/A N/A N/A N/A Varies
4 ENVIRONMENTAL ASSESSMENT FEES
A Categorical
Exemption No Fee N/A N/A N/A N/A No Fee
B Initial Study
(Deposit)* $5,000.00 N/A N/A N/A Yes Varies
C
Draft Initial Study
Review Fee (or actual
cost if part of a
Planned
Development,
General Plan and/or
Town Code
Amendment)
$2,950.00 N/A N/A N/A $2,045.00 $4,995.00
D Environmental
Impact Report (EIR) Consultant’s Fee N/A N/A N/A N/A Varies E Draft EIR Review Fee $12,184 Plus
10% EIR Cost N/A N/A N/A Varies Varies
F Impact Monitoring
Program (AB3180)
Actual Cost on
an hourly basis
plus cost of
Consultant (if
necessary)
N/A N/A N/A N/A Varies
5 OTHER
A Pre-application
Conference Fee No fee Varies Varies Varies N/A Varies
C Peer/Technical
Review
Actual Cost
($2,000 deposit) N/A N/A N/A N/A Varies
D
Fees for Additional
Tech Review and/or
DRC Review DRC
beyond 3 meetings,
Planning Commission
hearing beyond 2
meetings, Town
Council hearing
beyond 1
meeting
Actual Cost N/A N/A N/A N/A Varies
F Laserfiching Files $1.25 per Sheet N/A N/A N/A N/A Varies G Building Permit Plan
Check Fee
20% of Building
Fee N/A N/A N/A N/A Varies
H Surcharges
1 Permit Tracking
Maintenance and
Update Surcharge
4% of
Development
Application Fee
N/A N/A N/A N/A Varies
2 General Plan Update
Surcharge
.5% of Bldg. Valuation for new
construction and additions or
10% of zone change & subdivision
fee
N/A N/A N/A Varies
3 Advanced Planning
Projects
10% of
Development
Application Fee
N/A N/A N/A N/A Varies

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-29 Application
Fee
4% Permit
Tracking Fee
10%
General
Plan
Update
10% Advance
Planning
Special
Project
Engineering
Dev Review
Services Fee
Total Fee
4 Administrative Fee
10% of
Consultant
Deposit
N/A N/A N/A N/A Varies
I
Applications for
Work Unlawfully
Completed
Double Current
Application Fee N/A N/A N/A N/A Varies
J Consultation Actual Cost on
an hourly basis
N/A N/A N/A N/A Varies
N Appeals
1 Fee to Appeal
Planning Commission
Decision to Town
Council
$464 per
residential
$1,867 per
commercial,
multi-family or
tentative
map
N/A N/A N/A N/A Varies
2 Fee to remand
applications from
Town Council to
Planning Commission
where no error was
made by Planning
Commission
Actual Cost N/A N/A N/A N/A Varies
3 Fee to Appeal
Director of
Community
Development or
Development Review
Committee decision
to Planning
Commission
$234 per
residential
$934 per
commercial
N/A N/A N/A N/A Varies
4 Tree Appeals $95.00 N/A N/A N/A N/A $95.00
5 Appeal Transcription
fee of Planning
Commission minutes
Actual Cost
($500 Deposit) N/A N/A N/A N/A Varies
O Research Services
Minimum Charge
Actual Cost
($200 Deposit) N/A N/A N/A N/A Varies
P Zoning Research
1 Basic zoning letter $164.00 N/A N/A N/A N/A $164.00
2 Legal nonconforming
verification
$688.00 N/A N/A N/A N/A $688.00
3 Reconstruction of
legal non-conforming
structures
(Burndown Letter)
$292.00 N/A N/A N/A N/A $292.00
Q Annexations
1 One Lot $3,188.00 $127.52 N/A N/A N/A $3,315.52
2 Two Lots $3,188.00 $63.76 N/A N/A N/A $1,657.76
3 Three Lots $3,188.00 $42.56 N/A N/A N/A $1,106.56
4 Four Lots $3,188.00 $32.00 N/A N/A N/A $832.00

HCD Draft Revised Draft 2023-2031 Housing Element
C-30 Appendix C JanuaryNovemberSeptember March 20232024 Application
Fee
4% Permit
Tracking Fee
10%
General
Plan
Update
10% Advance
Planning
Special
Project
Engineering
Dev Review
Services Fee
Total Fee
5 Five Lots or more $3,188.00 $25.40 N/A N/A N/A $660.40 R Special Noticing Actual Cost
($500 deposit) N/A N/A N/A N/A Varies
Source: Town of Los Gatos Comprehensive Fee Schedule Fiscal Year 2022/23.

The following table provides a comprehensive list of residential Town development fees.

Table C-465 Additional Development Fees Effective July 1, 2022 Building Permit Fees Fee
Fee for issuing/reinstating a Building Permit $58.00
Additional Building Permit Fee $32.00
Demolition Permit Residential: $281.00
Commercial: $492.00
$1.00 to $500.00 $35.00
$501.00 to $2,000.00 $35.00 for the first $500.00 plus $4.53 for each additional $100.00 or fraction thereof,
to and including $2,000.00
$2,001.00 to $25,000.00 $103.00 for the first $2,000.00 plus $20.82 for each additional $1,000.00 or fraction
thereof, to and including $25,000.00
$25,001.00 to $50,000.00
$582.00 for the first $25,000.00 plus $15.02
for each additional $1,000.00 or fraction
thereof, to and including $50,000.00
$50,001.00 to $100,000.00
$957.00 for the first $50,000.00 plus $10.41
for each additional $1,000.00 or fraction
thereof, to and including $100,000.00
$100,001.00 to $500,000.00 $1,478.00 for the first $100,000.00 plus $8.32 for each additional $1,000.00 or fraction
thereof, to and including $500,000.00
$500,001.00 to $1,000,000.00 $4,808.00 for the first $500,000.00 plus $7.06 for each additional $1,000.00 or fraction
thereof, to and including $1,000,000.00
$1,000,001.00 and over $8,339.00 for the first $1,000,000.00 plus $4.68 for each additional $1,000.00 or
fraction thereof
Special Services & Inspections
Inspection outside normal business hours (4 hr. minimum) $203.00/hr.

Re-inspection fees $169.00/hr.

Inspections for which no fee is specifically indicated (2 hr. minimum) $169.00/hr.

Additional plan review required by changes, additions or revisions to plans (1 hr. minimum)
$161.00/hr
For use of outside consultants for plan checking and/or inspections Actual Cost

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-31 Building Permit Fees Fee
Services for which no fee is specifically indicated (1/2 hr. minimum) $169.00/hr.

Permit/Plan check time extension (per permit) (applies to permits that have not expired)
$83.00
Express plan review or initial review (1 hr. minimum) $169.00/hr.

Application for the Appeals Building Board Review $289.00 Temporary Certificate of Occupancy $1,160.00
Other Miscellaneous Factors to Determine Construction Valuation Convert Garage to habitable space $124.00/sq.ft.

Convert unfinished basement or attic to habitable $134.00/sq.ft.

Pools/Spas (gunite) $80.00/sq.ft.

Siding - aluminum/vinyl/wood $34.00/sq.ft.

Antennas & Towers Const.Value As Applied under valuation schedule on page 6
Fence or Freestanding Wall (over 6" high) Wood or metal $52.00/sq.ft.

Masonry $90.00/sq.ft.

Decks/Balcony $50.00/sq.ft.

Wood Deck $21.00/sq.ft.

Re-roofs $3.00/sq.ft.

Retaining Walls $113.00/sq.ft.

Special Systems Fees
Emergency generation, wind power, special HVAC systems, etc. Plan Review (1 hr. minimum) $161.00/hr.

Field Inspection (2 hr. minimum) $169.00/hr.

Photovoltaic - Roof & Ground Mounted – Residential Plan Review (1/4 hr. minimum) $161.00/hr.

Field Inspection (1 hr. minimum) $169.00/hr.

Photovoltaic - Roof & Ground Mounted - Commercial Plan Review (1 hr. minimum) $161.00/hr.

Field Inspection (2 hr. minimum) $169.00/hr.

Electrical Permit Fees
Fee for issuing/reinstating an Electrical Permit $58.00 Additional Electrical Permit Fee $26.00
New Residential Construction (new buildings only, including garages) $.11 sq. ft Commercial Construction $.08 sq. ft
Plan Review & Re-inspection Fees
Plan review fee 25% of Electrical Permit Fee
Additional plan review $161.00/hr.

Re-inspection fee $169.00/hr.

System Fee Schedule
Private swimming pools $67.00
Temporary power poles $83.00
Temporary distribution system & temporary lighting $40.00 Unit Fee Schedule
Receptacle, switch and lights $2.00
Residential appliances/new circuits (cook top, oven, range, disposals, clothes dryers, or other motor operated appliances not exceeding one horsepower)
$6.00

HCD Draft Revised Draft 2023-2031 Housing Element
C-32 Appendix C JanuaryNovemberSeptember March 20232024 Building Permit Fees Fee
Nonresidential appliances/new circuits (medical & dental devices, food, beverage, drinking fountains, laundry machines, or other similar equipment) NOTE: for other types of air conditioners and other motordriven appliances having larger electrical ratings, see Generators/Motors $8.00
Photovoltaic system (residential) $90.00
Solar systems (including controls) $90.00
Power apparatus (generators, transformers, A/C, heat pumps, baking equipment)
Up to 10 KV, each $17.00
Over 10 KV not over 50 KV, each $34.00
Over 50 KV and not over 100 KV, each $67.00
Over 100 KV, each $89.00
Motors Up to 10 hp $17.00
Up to 25 hp $34.00
Up to 55 hp $67.00
Over 55 hp $97.00
Transformers Up to 5 KVA $17.00
Up to 10 KVA $34.00
Up to 50 KVA $56.00
Over 50 KVA $82.00
Busways/conduits (per 100 ft) $8.00
Service equipment 200 amps or less $83.00
201 to 999 amps $114.00
Sub-panels $40.00
Installation of spas or saunas $40.00
Other Electrical Fees
Duplicate job card $26.00
Permit extension (applies to permits that have not expired) $83.00 Mechanical Permit Fees
Fee for issuing/reinstating a Mechanical Permit $58.00
Additional Mechanical Permit Fee $26.00
New Residential Construction (new buildings only, including garages) $.11 sq. ft Commercial Construction $.08 sq. ft
Plan Review & Re-inspection Fees
Plan review fee 25% of Mechanical Permit Fee
Additional plan review $161.00/hr.

Re-inspection fee $169.00/hr.

Unit Fee Schedule
Installation, of each heating system, A/C, boiler, compressor or air handler
$40.00
Each duct repair or alteration $12.00
Each fireplace appliance $34.00
Each ventilating fan $12.00
Installation of separate flue or vents not included with the installation of an appliance
$12.00
Installation of each hood with mechanical exhaust Residential $34.00 Commercial $121.00
Each new or repair of gas piping system $74.00
Each additional gas outlet $24.00
Installation of evaporative cooler $34.00

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-33 Building Permit Fees Fee
Other Mechanical Fees
Duplicate job card $26.00
Permit extension (applies to permits that have not expired) $83.00 Plumbing Permit Fees
Fee for issuing/reinstating a Plumbing Permit $58.00
Additional Plumbing Permit Fee $26.00
New Residential Construction (new buildings only, including garages) $.11 sq. ft Commercial Construction $.08 sq. ft
Plan Review & Re-inspection Fees
Plan review fee 25% of Plumbing Permit Fee
Additional plan review $161.00/hr.

Re-inspection fee $169.00/hr.

System Fee Schedule
Private swimming pools (including heater, water piping, gas piping) $97.00 Lawn sprinkler system on one meter $40.00
Each new or repair of gas piping system $74.00
Each drainage, sewer system $40.00
Radiant floor heating system $121.00
Unit Fee Schedule
Each plumbing fixture or trap or set of fixtures on one trap $12.00 Each sewer cleanout, backflow device $12.00
Each septic system abatement $121.00
Rainwater systems - per drain (inside building) $12.00
Each water heater, water softener $34.00
Each grease interceptor (750 gallon capacity) $83.00
Each grease trap (1-4 fixtures) $47.00
Residential water re-piping $121.00
Each ejector/sump pump $40.00
Each vacuum breaker/hose bib $12.00
Each water piping system repair or replacement $25.00
Each additional gas outlet $25.00
Other Plumbing Fees
Duplicate job card $26.00
Permit extension (applies to permits that have not expired) $83.00 Other Fees
Duplicate Inspection Card $32.00
NPDES Inspection Fee (Charged on all building permits with the potential to generate non-point source storm water runoff during construction) $74.00
Engineering Plan Check Fee
Application Fee $519.00
Under $20,000.00 15.5% of valuation
$20,000.00 to $80,000.00 $3,283.00 plus 9% of valuation Greater than $80,000 $9,002.00 plus 8.5% valuation
Each additional plan check beyond three reviews Fully allocated hourly rate for all personnel Inspection Fee
Under $20,000.00 7.5% of valuation

HCD Draft Revised Draft 2023-2031 Housing Element
C-34 Appendix C JanuaryNovemberSeptember March 20232024 Building Permit Fees Fee
$20,000.00 to $80,000.00 $1,589.00 plus 6.5% of valuation Greater than $80,000.00 $5,719.00 plus 4.0% of valuation Work In or Use of Public Right of Way
Encroachment Permit - Residential Work up to $4,000.00 - $323.00 Each additional $2,000.00 - $169.00
Encroachment Permit - Collector/Arterial Streets** Work up to $4,000.00 - $1,673.00 Each additional $2,000.00 - $365.00
Outside contractor underground utility locating surcharge (actual cost for outside contractor inspection fee may change)
$95.00
Temporary Encroachment Permit $159.00
Dumpster Permit $159.00
Storage Permit $159.00***
* Work done at night or on weekends shall be charged the actual costs of staff ** Single-family residences located along collector and arterial streets to be charged the residential fees above NPDES
Inspection Fee - Grading Permits Single Family Residential $773.00 Commercial or Multi Family Residential
$1,202.00
Inspection Fee - Encroachment Permits and Some Storage Permits Single Family Residential $212.00 Commercial or Multi Family Residential
$344.00
Plus $514.00 per LID facility
Inspection of Storm Water Treatment Measures $530.00 per facility Annual Stormwater/Limited Impact Development (LID) Permit Per Visit and 1st facility inspection $514.00 Every additional facility inspection $169.00
C-3 Permit Hydrologic Calculation Fully allocated hourly rate for all personnel plus any outside cost and initial deposit of
$3,750.00
Engineering Subdivision Map Checking
1-4 lots $3,023.00*
5 or more lots $4,231.00*
*Plus, initial $3,000 surveyor deposit. Additional deposit(s) of actual surveyor costs may be required for larger projects than 5 or more lots, additional map check review(s), or overall complexity of the map.

Traffic Impact Analysis or Parking Study
Development Review (staff traffic impact analysis or Parking Study) Actual Cost Consultant Report - Consultant Fee
Staff Review Fee $703.00 plus 10% of the traffic consultant report cost
Site Distance Analysis $189.00 per review not to exceed two hours.

Actual cost for staff time when analysis
exceeds two hours.

Traffic Impact Mitigation Fee $1,015.00 per new average daily trip generated
Storm Drainage Fees
Development Projects Single family lots Section 24.60.035(b) (3): For subdivision whose lots exceed one acre, the
fee shall not exceed that of one acre per lot
$4,477.00/ac.

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-35 Building Permit Fees Fee
Multiple family dwelling units - initial unit
$4,477.00/ac.

Multiple family dwelling units - each unit
after initial (not to exceed $4,622.00/ac.)
$168.00
Commercial, industrial, hospitals, churches,
schools, and others $5,598.00/ac.

Building/Grading Permits (Building, Structures, & impervious areas) New impervious surface area, per sq. ft. $1.00/sq. ft.

Street Improvement in-lieu fee
Sidewalks $20.00/sq.ft.

Curb and Gutter $100.00/lf.

Other in-lieu fee
Trail Improvements
$16.00/per sq. ft. or determined by Director
Construction Activities Mitigation Fee
New Buildings and Additions Residential (per square foot added) $1.26/sq.ft.*
Non-residential (per square foot added)
$1.26/sq.ft.*
*These two fees are adjusted based on the Building Cost Index Other Engineering Fees
Engineering Reversion to Acreage $2,536.00 plus initial deposit of $2,500 for surveyor
Engineering Lot Merger $3,685.00 plus surveyor deposit
Engineering Lot Line Adjustments $3,685.00 plus surveyor deposit Certificate of Compliance $3,685.00 plus surveyor deposit Abandon Excess Public Right-of-Way & Public Easement $4,601.00 plus surveyor and valuation consultant and planning services
Geotechnical Peer Review Fees Fully allocated hourly rate of all personnel plus any outside costs and initial $2,500
deposit. Larger projects require an initial
deposit of $4,500 to allow for a site visit by
the geotechnical peer review consultant.

Separate Instrument Dedication Fee (for dedication via grant deeds and not maps)
$762.00 plus initial deposit of $2,500 for
surveyor
Slurry Seal Fee $2.50 per sq.ft.

Flood Review Fee Consultant Cost plus 25% Admin Fee
Miscellaneous Review Fee* Actual Cost
Tree Related Fees
Tree removal (one tree) $250
Tree Removal (Each additional tree on same application) $125 Illegal Tree Removal Administrative Fee $300
15 gallon and each 24” Box Replacement Tree In-Lieu Fee $250 36” Box Replacement Tree In-Lieu Fee $500
Source: Town of Los Gatos Comprehensive Fee Schedule Fiscal Year 2022/23.

HCD Draft Revised Draft 2023-2031 Housing Element
C-36 Appendix C JanuaryNovemberSeptember March 20232024 The following table provides fee comparisons of jurisdictions located in Santa Clara County.

Table C-5 76 Total Fees per Unit
Jurisdiction Single-Family Small Multi-family Large Multi-family Campbell $72,556 $20,599 $18,541
Cupertino $136,596 $77,770 $73,959
Gilroy $69,219 $40,195 $39,135
Los Altos Hills $146,631 N/A N/A
Los Gatos $11,202 $15,375 $15,375
Milpitas $77,198 $74,326 $59,740
Monte Sereno $33,445 $4,815 $4,156
Morgan Hill $55,903 $41,374 $36,396
Mountain View $90,423 $69,497 $82,591
San Jose $9,919 $23,410 $23,410
Santa Clara $72,034 $7,299 $3,048
Saratoga $64,272 $17,063 $15,391
Sunnyvale $133,389 $126,673 $98,292
Note: Inclusive of impact, building and entitlement fees. Source: SCCPC, 2022 citiesassociation.org/documents/constraints-survey-data-summary-2022 and Los Gatos staff.

Source: Cities Association of Santa Clara.

The following table provides a comparison as a percentage of total development costs of jurisdictions located in Santa Clara County.

Table C-6 87 Fees as a Percentage of Total Development Costs Jurisdiction Single-Family Small Multi-family Large Multi-family Campbell 2.6% 2.7% 2.6%
Cupertino 2.9% 10.3% 10.5%
Gilroy 1.5% 5.3% 5.6%
Los Altos Hills 3.1% N/A N/A
Los Gatos 1.2% 0.8% 0.5%
Milpitas 2.8% 9.8% 8.5%
Monte Sereno 0.7% 0.6% 0.6%
Morgan Hill 2.0% 5.5% 5.2%
Mountain View 3.3% 9.2% 11.8%
San Jose 0.4% 3.1% 3.3%
Santa Clara 2.6% 1.0% 0.4%
Saratoga 1.4% 2.3% 2.2%
Sunnyvale 4.8% 16.8% 14.0%
Unincorporated County 0.9% N/A NA
Note: Calculation uses a county-wide average total development cost. Source: SCCPC, 2022 citiesassociation.org/documents/constraints-survey-datasummary-2022.

Source: Town of Los Gatos.

Permit fees and processing times are not significant constraints to housing production in Los Gatos. In the Spring of 2022, the Santa Clara County Planning Collaborative conducted a survey of fees and permit processing times in Santa Clara County. Fourteen of fifteen jurisdictions completed the survey, an excellent response rate. The results indicate that Los Gatos has overall permit fees that are within the average range of Santa Clara County jurisdictions.

The Town’s fees also represent a relatively low percentage of the overall cost to develop housing in Los Gatos.

Based on the Santa Clara County Planning Collaborative survey results and an analysis on housing development costs performed by Century Urban, a San Francisco based real estate consulting firm, the fees represent

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-37 approximately 1.2 percent of total development costs for a single-family home, 0.8 percent for a 10-unit multifamily development, and 0.5 percent for a 100-unit multi-family development. The fee structure does not disproportionally burden multi-family housing.

Development Impact Fees
In accordance with Assembly Bill (AB) 1483, detailed information on the residential development and permitting costs may be found on the Town’s State Housing Law webpage.

The following sections provide an analysis of the type of fees the Town collects. New development is subject to the payment of development impact fees. The Town, like other municipalities, may collect development impact fees to fund the Town services and facilities that would be impacted by new construction, such as infrastructure, transportation improvements, fire services, police services, recreational services, and capital facilities. These fees are one-time charges that offset the increase in demand of services resulting from new development.

These fees are collected prior to building permit issuance or prior to certificate of occupancy. Although these impact fees increase the cost of development, they are necessary to ensure that infrastructure and services are in place to support the new development. Impact fees are factored into project costs for developers and are required across all jurisdictions.

Per State law requirements, ADUs less than 750 square feet cannot be charged development impact fees. ADUs are exempt from utility connection fees unless constructed with a new single-family residence. The exemption of impact fees and limitation on connection fees has reduced the costs of ADU development.

The Town collects three development impact fees to ensure that new residential development pays its fair share of funding for its impact to the Town’s services, facilities, and infrastructure. Housing development in the Town is subject to the following impact fees:

1. Traffic Impact Mitigation Fee: The Traffic Impact Mitigation Fee assures that each new development or expansion pays for its fair share of the transportation improvements needed to accommodate the cumulative traffic impact. The fee, $1,015 per new average daily trip generated, is paid in full to the Town prior to issuance of the building permit for new development or expansion of use. The collected fee is held in the Traffic Mitigation Fee Fund. The Traffic Mitigation Fee Fund is used solely to fund transportation improvement projects related to mitigating the impacts of the new development. The funds cannot be used for routine repair or maintenance. The Town is currently in process to review and update the fee, which may include a Vehicle Miles Traveled (VMT) component in the future.

2. Construction Impact Activity Fee: The Construction Impact Activity Fee is assessed on construction projects based on the square footage size of the project at a rate of $1.26 per square foot. These fees are intended to recover the damaged caused to Town streets by construction traffic. The collected fee is held in the General Fund Appropriated Reserves.

3. Below-Market Prices (BMP) Housing Program In-Lieu Fee: BMP In-Lieu Fees are collected from residential development projects with five (5) or more units when construction of the BMP unit is impractical or there are unusual circumstances that make the construction of the unit inconsistent with Town policy. The required inlieu fee is to be paid to the Town prior to issuance of the certificate of occupancy. The BMP In-Lieu Fee is equal to the amount of six percent of the building permit valuation for the entire project. The collected fees are held in the General Fund BMP Housing liability account and are restricted to be used solely for BMP Housing activities. See further discussion on the BMP Housing Program below.

Additional Housing Development Requirements and Fees
Additional requirements and costs associated with housing development in Town include the following:

Story Poles
The Town requires installation of height story poles and netting for all new residential (excluding single-story accessory structures) and non-residential buildings; residential second story additions; and nonresidential additions exceeding 100 square feet. This requirement is intended to provide a physical representation on the project site, the planned rooflines, heights and massing of the proposed structure(s),, and provide visual notice to the community of a forthcoming land use hearing. The placement of story poles is extremely helpful and

HCD Draft Revised Draft 2023-2031 Housing Element
C-38 Appendix C JanuaryNovemberSeptember March 20232024 important during the Town’s review of applications for new development. Story poles enhance the understanding of the project for Town residents, staff, advisory bodies, and decision-makers. However, the cost of story pole and netting installation, maintenance throughout the public hearing process, and additional time added to the process for installation can be viewed as a constraint for development. The Housing Element includes a program to commit to reviewing the Town’s Story Pole and Netting Policy and exploring options for residential or mixeduse projects with affordable housing to reduce the associated cost of installing story poles. The Planning Commission began discussions regarding changes to the Story Pole and Netting Policy with public meetings on April 26, 2023, and May 24, 2023. The Planning Commission recommendation for modifications to the Story Pole Policy was considered by Town Council on August 1,in Summer 2023 and developed the following preliminary modificationsrecommendations:
 Waive story pole requirements for projects with 30 percent Below Market Price housing or 20 percent Low Income or Very Low Income housing and in its place require signage with a QR code that links to renderings and videos of the project.
 Retain existing story pole guidelines for the Hillsides and sites in the Historic Inventory.  Require story poles for single-family residential projects if the project includes a new two-story house or second story addition where both of the adjacent neighbors are single-story homes or if there is a request for variance or exception to physical development standards.  Replace mesh netting requirement with double flagging as the default unless the applicant prefers to use mesh netting.
 Do not require full story poles for multi building projects, instead showing just the outside perimeter and the height of the tallest building.

On December 5, 2023, the Town Council modified the Story Pole Policy to further reduce the associated costs of installing story poles, by providing an option to provide video rendering or other visual methods in place of story poles for all multi-family and mixed-use projectsand all projects over 55 feet in height to reduce constrains/cost and increase approval certainty. These initial recommended changes will significantly reduce this constraint, particularly for affordable housing and multi-family projects. The Town CouncilPlanning Commission will continue discussions and finalize additional policy changes by the end ofin Fall 2023.

Public Art for Private Developments
A robust public art program fosters economic development, creates vital public spaces, and promotes general health and welfare by contributing to a more desirable community in which to live, work, and recreate. Wellconceived and executed works of art that are integrated into their sites and accessible to the public enhance the value of development projects, create greater interest in leased space, promote cultural tourism, create a sense of place, and make a lasting visible contribution to the intellectual, emotional, and creative life of the community at large, thereby helping to mitigate the impacts of development. The experience of public art makes public areas of buildings and grounds more inviting and engaging. There is a growing national trend to require the of includingorporation of public art in private developments or requiring developers to pay into a public art fund. In California, more than 48 cities have such an ordinance or policy.

On May 4, 2021, the Town Council adopted Ordinance 2318 amending Chapter 25 of the Town Code to establish a public art requirement for private developments. The requirement for public art applies to the following types of development:
(a) New commercial developments (including mixed-use projects), including new construction, and additions and remodels that add more than 50 percent square footage; and (b) New residential projects of three or more units, including new construction, and additions and remodels that add more than 50 percent square footage.
(c)I Notwithstanding subsections (a) and (b) above, this Chapter shall not apply to:
(i) Affordable housing developments, or, if affordable housing is a part of the development, the affordable housing units shall be subtracted from the valuation of the project as in subsection (d) below;
(ii) Historic renovations;
(iii) Repair or reconstruction of structures damaged by flood, fire, wind, earthquake, or other disaster; (iv) Seismic retrofit projects;
(v) Single family and two-family residential units;

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-39 (vi) Accessory dwelling units or junior accessory dwelling units; (vii) Any project exempted by Federal or State law;
(viii) Municipal facilities; and
(ix) Buildings or structures primarily used for religious worship.

A developer may satisfy the requirements of Chapter 25 of the Town Code by constructing or installing on-site public art valued at one percent of the building permit valuation. The developer may elect to make a monetary contribution to the Los Gatos Public Arts Fund, in lieu of installation of on-site public art. The amount of the contribution shall be the cost of the public art as required by Town Code. The in-lieu payment must be made prior to the issuance of any building permit.

The public art requirement for private developments can be viewed as a constraint to producing housing.

Therefore, the Town’s adopted Ordinance providesd an exemption to the requirement for affordable housing developments. In addition, the Town Code allows for an exemption from the public art requirement if affordable housing is a part of the development and the affordable housing units shall be subtracted from the valuation of the project. Additional exemptions from the requirement for residential projects are described above.

Parks and Public Works Improvement Requirements
The Parks and Public Works Department may require in-street improvements or street improvement in-lieu fees, tree replacements or tree replacement in-lieu fees, and may require a Transportation Demand Management Program (TDM) depending on the scope of the residential development. The associated fees are described in Table C-4 above.

School District Fees
Local school districts charge a fee per square foot of new development that must be paid prior to the issuance of building permits. The purpose of the fee is to compensate school districts for the costs associated with the demand for additional services and classroom space generated by new residential development. The four districts that collect fees in the Town are the Los Gatos Union School District, which levies a fee of $3.48 per square foot for residential construction; the Union School District, which levies a fee of $3.79 per square foot for residential construction in the Town; and the Campbell Union High District, which levies a fee of $1.44 per square foot for residential construction and $0.234 for senior residential construction in the Town; and the Cambrian School District, which levies a fee of $3.35 per square foot for residential construction. School district fees increase the cost of development and may act as a potential constraint to development. However, they are necessary to ensure the provision school services to the community and the Town has no control over their imposition or rates.

Development Review Process and Permit Processing Time
Government policy at both the State and jurisdictional levels play a major role in determining the costs of building new housing. Regulations and permitting processes that result in lengthy or uncertain development carry higher risk and increased financing. Additionally, frequent delays in the entitlement and approval process directly increase costs, such as additional architectural work, inspections, and community meetings. Streamlining permitting processes, applying permit application processes consistently, increasing interdepartmental cooperation, having adequately funded and staffed planning departments, and increasing by-right housing are all actions jurisdictions can take to reduce the constraints represented by fees and permit processing times. The efficiency and timing of a jurisdiction’s processes for review and approval of residential development has a significant impact on the amount and pace of housing construction. The procedures for development review and permitting in the Town of Los Gatos are described below. Each stage of the residential development process must go through some form of Town approval. Table C-7 8 summarizes the approximate processing time for development applications in the Town of Los Gatos.

Table C-7 8 Local Development Processing Time Frame
Application Type Development Time Frame
Architecture and Site Application for a single- or
multi-family residential project
Three to six months *

HCD Draft Revised Draft 2023-2031 Housing Element
C-40 Appendix C JanuaryNovemberSeptember March 20232024 Architecture and Site Application for a hillside
residential
Four to six months *
Architecture and Site Application for a mixeduse project Four to eight months * Conditional Use Permit Application Two to four months
Subdivision Application Two to four months
Variance Application Two to four months
* Note: With environmental review, the process generally takes six to 18 months, depending on the size and complexity of the project.

Source: Town of Los Gatos
Development Review Process
The requirements of the permit processing procedure have the potential to act as a constraint to the development of housing. The time and uncertainty of the review cycle can contribute significantly to the overall cost of the project, ability to obtain and maintain funding, and the cost of each dwelling unit. Certainty and consistency in permit processing procedures and reasonable processing times are important to ensure that the developmental review and approval process does not act as a constraint to development by adding excessive costs or discouraging housing development. It is important to note that ADUs and SB 9 units are reviewed ministerially, as required by State law, and are not subject to the review process described below.

Processing of a typical single- or multi-family housing or mixed-use housing projects include the following steps:

1. Pre-Submittal: Prior to the formal submittal of a specific development application, it is recommended that an applicant contact or meet with a planner at the counter and various departments/divisions to determine specific requirements and to assess completeness of the proposal. Pre-submittal review can reduce the time required for processing the application by identifying any missing information, special circumstances, or potential issues early in the process.

2. File Application: Applicant will complete a pre-application, which includes submitting application forms, plans, documents, and other related project materials to the Town’s Online Permitting Services. Staff will review the materials to ensure the files contain all materials necessary for project review. Once the assigned project planner reviews and finds the submittal requirements complete, the pre-application will become a full application. Application fees will be collected on-line by credit card or in the office.

3. Technical Review: Staff representatives of Town departments, which include Community Development (Planning and Building Divisions), Santa Clara County Fire Department, and Parks and Public Works (Engineering Division) meet with the project applicant within 21 days from applicant payment to ensure that the project:
a. Is complete;
b. Meets all code and policy requirements; and
c. Meets the requirements of the California Environmental Quality Act.

Each department will provide a comment letter deeming the application complete, or providing a list of project deficiencies, and general comments. Applications that do not meet all of the requirements are continued at this level until the application is complete.

In addition to the staff listed above, applications may also be reviewed by the following Town Committees, consultants, or outside agencies when deemed appropriate:
 Town’s Historic Preservation Committee
 Town’s Environmental Consultant
 Town’s Consulting Architect
 Town’s Consulting Arborist
 Town’s Consulting Landscape Architect (WELO)
 Town’s Geotechnical Peer Reviewer

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-41  Town’s Consulting Traffic Consultant
 Santa Clara Valley Water District
 County of Santa Clara – Health Department

4. Story Poles and Public Hearing Notices: Once a project is deemed complete the story poles and netting and project sign shall be installed prior to the neighborhood notification process and shall remain in place until the project has been acted upon and the appeal period has ended. Public notices will not be mailed and/or application(s) shall not be advertised until a Story Pole Plan has been approved by the project planner, the story poles and netting have been installed, and photographs have been submitted to the project planner. A licensed surveyor or civil engineer shall submit written verification that the height and position of the poles and netting accurately represents the height and location of the proposed structure(s) or addition.

Public hearing notices will be sent out once the story poles process is complete. Public notices are sent out to property owners and tenants within 500 feet of the subject property for hillside zoned properties and 300 feet for non-hillside zoned properties.

5. Public Hearings: If a discretionary application is determined to require a public hearing, Division 7 of Chapter 29 of the Town Code assigns which hearing body has the authority to issue decisions for development applications. There are three types of public hearing bodies in the Town: Development Review Committee (DRC); Planning Commission (PC); and Town Council (TC).

Development Review Committee
The DRC consists of the following departments: Community Development (Planning and Building Divisions), Parks and Public Works, and Santa Clara County Fire. The Santa Clara County Environmental Health Department is also part of the DRC when certain matters require its input. The DRC has the authority to approve certain applications pursuant to Town Code and/or standards, that require no change in the General Plan or Zoning Code, meet the Zoning Code regulations, and meet the Residential Design Guidelines and/or Hillside Development Standard and Guidelines.

DRC meetings are held every Tuesday at 10:00 a.m. in the Town Council Chambers, located in the lower level of Town Hall. Applicants are sent a copy of the DRC agenda. The applicant and/or representative is required to be present, and members of the public are welcome to attend and participate.

If any applicant or an interested person as defined by the Town Code, wishes to appeal an action or decision of the DRC, such appeal must be made in writing with the required fee, to the Community Development Department within 10 calendar days of the DRC’s action or decision. The matter will then be set for hearing on the next available Planning Commission agenda.

Planning Commission
The PC consists of seven residents of the Town of Los Gatos, appointed to serve a four-year term. Upon appointment, Planning Commissioners must demonstrate knowledge of the Town Code and its land use and planning policies. The PC has the authority to approve certain applications pursuant to Town Code and/or standards.

The PC performs duties and exercises power and authority with regard to planning, subdivisions, zoning, zoning administration, and other land use regulatory controls as prescribed by ordinance and Sstate law.

The PC reviews projects that require variances or exceptions from Town Code, projects that request exceptions from the Town Design standards, projects requiring Conditional Use Permits, hillside development applications depending on the scope of work, and appeals from the DRC. The Planning Commission is the deciding body for a multi-family or mixed-use project.

HCD Draft Revised Draft 2023-2031 Housing Element
C-42 Appendix C JanuaryNovemberSeptember March 20232024 The PC meets on the second and fourth Wednesday of each month, in the Town Council Chambers, at 7:00 p.m. PC meetings are broadcast live on KCAT-15. Live and archived videos are also available on the Town's YouTube Channel. Applicants are sent a copy of the PC agenda. Meetings are hybrid, and participants may attend in persons or via Zoom. The applicant and/or representative are required to attend through either platform. Members of the public are welcome to attend through either platform to participate.

If any applicant or an interested person as defined by the Town Code, wishes to appeal an action or decision of the PC, such appeal must be made in writing with the required fee, to the Town Clerk within 10 calendar days of the PC’s action or decision. Pursuant to Town Ordnance the Town Clerk will set the TC hearing within 56 days of the date of the PC decision.

Town Council
The Town of Los Gatos operates under the Council/Manager form of government, a system that combines the policy leadership of elected officials in the form of a TC, with the professional, managerial, and leadership expertise of an appointed Town Manager. The TC is the legislative body for the Town of Los Gatos. The five members are elected to serve staggered four-year terms and can serve two consecutive four-year terms. Each year in December, the TC elects one of its members to serve as Mayor and Vice Mayor. The Town is a General Law City and operating under the provisions of the State Government Code. The TC reviews applications that require a change in the General Plan or Zoning Code, and appeals from the PC.

The TC meets regularly on the 1st and 3rd Tuesday of each month at 7:00 p.m., in the TC Chambers. TC meetings are broadcast live on KCAT-15. Live and archived videos are also available on the Town's YouTube Channel. Applicants are sent a copy of the TC agenda. Meetings are hybrid, and participants may attend in persons or via Zoom. The applicant and/or representative are required to attend through either platform. Members of the public are welcome to attend through either platform to participate. All decisions made by the TC are final.

Required Findings and Considerations
Each application type requires the hearing body to make specific findings and/ or considerations based on Town Code and, this varies depending upon the scope of project. See Findings and Permit Process Related to Housing, below on page C-39.

6. Appeal Period: Following the decision by the DRC or PC there is a ten-day appeal period during which the project may be appealed to the next hearing body. The Town Council decision is final.

7. Plan Check: Following the 10-day appeal period and required approvals, the construction plans may be submitted to the building division for plan check for building permits. The plans will be routed to the Town’s Planning Division, Building Division, Engineering Division, and the Santa Clara County Fire Department. The project planner will review the plans for conformance with the Zoning Code, any required Conditions of Approval, and with the plans approved by the DRC, PC, or TC. The Building Division will verify that all building, ADA, mechanical, plumbing, and electrical code requirements are fulfilled in compliance with the Uniform Building Code and other State requirements.

8. Grading Permit: Depending upon the scope of the project the applicant may be required to apply for a Grading Permit per Town Code through the Engineering Division of the Parks and Public Works Department. Grading permits must be issued prior to the building permit being issued.

1.9. Building Permit: After the project plans receive approval from the relevant departments, the building division issues a building permit. Construction can begin after this point. Regular inspections are required throughout the construction process. The final inspection requires clearance from all relevant Town departments and the Santa Clara County Fire Department.

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-43

10. Occupancy Permit: Once the final inspection is complete, the developer needs to secure an occupancy permit. If Below Market Prices (BMP) fees, Traffic Impact Fees, or Tree Replacement In-Lieu fees are required, the remaining balance must be paid at this time. Buildings or structures cannot be used or occupied until the Building Official has issued a certificate of occupancy. The section below describes the average processing time for typical residential development applications.

Processing of a typical, market rate single- or multi-family housing application includes the following steps:

Submission of an Architecture and Site Application.

Distribution of the application to Planning, Building, Engineering, and the Santa Clara County Fire District departments.

Staff review of application and staff conference with the applicant to resolve any concerns or plan deficiencies, including design issues.

If deemed complete, staff continues processing the application and begins environmental review, if necessary.

Completion of environmental review and traffic impact analysis, as appropriate. Arborist review, architectural review, and/or geotechnical review may be conducted during this time through the Architecture and Site application. A deposit for review by the Town’s Consulting Architect and Consulting Arborist is requested during the application review. A peer review deposit for geotechnical and traffic impact analysis is requested by the Parks and Public Works Department during the application review.

Staff will then provide instructions on next steps, including the requirement for Story Poles.

Once the Story Poles have been installed and certified by a licensed surveyor or civil engineer to accurately represent the height and location of the proposed structure(s), public notice will be sent, and advertisement in the local newspaper approximately three weeks prior to making a decision on the project will be completed.

Pursuant to the Town Code, any interested person as defined in Section 29.10.020 may appeal to the Council any decision of the Planning Commission within 10 calendar days of the decision accompanied by the required filing fee.

Once the appeal period has passed, the applicant can remove the Story Poles.

Approval is required by the following bodies:

Development Review Committee (with appeal to the Planning Commission and further appeal to the Town Council) for projects that require no change in the General Plan or Zoning Code.

For hillside development applications, Planning Commission approval may be required depending on the scope of the project.

Town Council for projects that require a change in the General Plan or Zoning Code, and for Planned Developments.

Processing for a typical mixed-use housing project includes the following steps:

Submission of application, including application for a Conditional Use Permit (CUP), and an Architecture and Site Application.

Distribution of the application to Planning, Building Engineering, and the Santa Clara County Fire District departments.

Staff review of application and staff conference with applicant to resolve any concerns or plan deficiencies, including design issues.

If deemed complete, staff continues processing the application and begins environmental review, if necessary.

Completion of environmental review and traffic impact analysis, as appropriate. Arborist review, architectural review, and/or geotechnical review may be conducted during this time through the Architecture and Site application.

Staff will then provide instructions on next steps, including the requirement for Story Poles.

Once the Story Poles have been installed and certified by a licensed surveyor or civil engineer to accurately represent the height and location of the proposed structure(s), public notice will be

HCD Draft Revised Draft 2023-2031 Housing Element
C-44 Appendix C JanuaryNovemberSeptember March 20232024 sent, and advertisement in the local newspaper approximately three weeks prior to making a decision on the project will be completed.

Pursuant to the Town Code, any interested person as defined in Section 29.10.020 may appeal to the Council any decision of the Planning Commission within 10 calendar days of the decision accompanied by the required filing fee.

Once the appeal period has passed, the applicant can remove the Story Poles.

Approval is required by one or both of the following bodies:

Planning Commission (with appeal to the Town Council) for projects that require no change in the General Plan or Zoning Code, and for a CUP and Architecture and Site Application.

Town Council for projects that require a change in the General Plan or Zoning Code, and for Planned Developments.

Permit Processing Time
Design and neighborhood compatibility issues also often lengthen the permitting and processing time. To address this problem, the Town contracts out to an architectural consultant to review plans and provide recommendations on development applications’ compliance with the Residential Design Guidelines or Hillside Development Standards and Guidelines.

Architectural, geotechnical, and arborist reviews are conducted early in the development application process.

These reviews are conducted during thesimultaneously with the review of the Planned Development or Architecture and Site applications and do not lengthen the processing time. These reviews also streamline the public hearing process, allowing the Planning Commission to rely on the recommendations of Town staff and the Town’s consultants to receive qualified input from an architect, arborist, and geotechnical consultant, leading to a more efficient approval process.

The table below summarizes the approximate processing time for development applications in the Town.

Table C-98 Local Development Processing Time Frame
Application Type Length of Approval
Architecture and Site Application for a single- or
multi-family residential project
Three to six months *
Architecture and Site Application for a hillside
residential project
Four to six months *
Architecture and Site Application for a mixeduse project Four to eight months * Conditional Use Permit Application Two to four months
Subdivision Application Two to four months
Variance Application Two to four months
* Note: With environmental review, the process generally takes six to 18 months, depending on the size, complexity, level of CEQA review required.

Source: Town of Los Gatos.

Processing Time Relative to Santa Clara County
The Town’s processing time for permits and development review is comparable to other jurisdictions in Santa Clara County. Qualifying affordable housing developments (SB 35) are eligible for ministerial review, which significantly reduces the length of the review process. The Town’s processing times are not considered an undue constraint on housing development. In comparison to jurisdictions within Santa Clara County, the processing times for applications in the Town are generally aligned with the approximate time frames, as provide in Table C109, below. Processing times represent general applications, and processing time may increase due to a variety of factors including the complexity of the site, applicant responsiveness and completeness of application materials, and studies required for environmental review. All jurisdictions face these factors which can modify the permit processing time due the scope the project and site conditions.

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-45 Table C-8 109 Processing Times (in months)
Jurisdiction ADU
Process
Ministerial
By-Right
Discretionary
By-Right
Discretionary
(Development Review
CommiteeCommittee)
Discretionary
(Planning
Commission)
Discretionary
(Town
Council)
Campbell 1 1 3 N/A 5 8
Cupertino 1 to 3 1 to 6 2 to 4 2 to 4 3 to 6 6 to 12
Gilroy 1 to 2 1 to 2 2 to 4 N/A 4 to 5 5 to 6
Los Altos Hills 1 to 2 0.5 to 2 2 to 3 3 to 4 4 to 6 5 to 8 Los Gatos 1 to 2 1 to 2 1 to 2 2 to 4 4 to 6 6 to 12
Milpitas 1 to 3 1 to 3 2 to 4 3 to 4 4 to 6 6 to 12
Monte Sereno 0.75 0.75 1 1 to 2 1 to 2 1 to 2
Morgan Hill 1 to 2 1 to 3 *2 to 3 2 to 3 4 to 6 4 to 6
Mountain View 3 to 5 4 to 6 2 to 3 *6 to 18 N/A 12 to 24 San Jose 2 1 to 3 7 7 7 to 11 5 to 12
Santa Clara 0 to 1 0 to 1 0 to 3 4 to 9 6 to 9 6 to 12
Saratoga 1 1 to 2 2 to 3 N/A 4 to 6 6 to 12
Sunnyvale 1 to 3 1 to 3 3 to 6 6 to 9 9 to 18 9 to 18
Unincorporated
County 4 to 6 6 to 8 9 to 12 12 to 15 15 to 18 15 to 18 Entitlements Only. Source: SCCPC, 2022 citiesassociation.org/documents/constraints-survey-data-summary-2022.

Source: Town of Los Gatos.

Following the creation of Table C-9, iIn response to changes in State law as of January 1, 2023, and as part of the Town’s ongoing efforts to increase efficiency for permit reviews, the Town’s Planning and Building Divisions have developed a new 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.

Jurisdictional permit processing procedures that are lengthy or uncertain can dissuade developers from building new housing or result in housing that is more expensive. Within Los Gatos, the permit processing times are within the average range for jurisdictions within Santa Clara County. The Town’s permit process also does not disproportionally burden ADU applications or applications for multi-family housing.

HCD Draft Revised Draft 2023-2031 Housing Element
C-46 Appendix C JanuaryNovemberSeptember March 20232024 Approval Body and Appellant Body for Housing Permits
The following table indicates the approval body and appellant body for each housing permit type.

Table C-11 Approval Body for Planning Permits
Approval Body
Appellant
Body
Permit Types Director Development
Review Committee
(DRC)
Planning Commission
(PC)
Town Council (TC)
ADU (Ministerial) --
SB 9 (Ministerial) --
General Plan
Amendment
Recommendation to TC --
Rezone Recommendation to TC --
Planned Development Recommendation to TC --
Architecture and Site
Application
Pending scope Pending scope
PC and TC
Conditional Use Permit
Pending scope Pending scope
PC and TC
Variance TC
Subdivision
Pending scope Pending scope Pending scope
PC and TC
SB-330
Pending scope Pending scope
TC
SB-35 – Streamline
Findings and Permit Processes Related to Housing
Housing permits fall into one of two categories: ministerial andor discretionary. The following section discusses the types of residential development approved through ministerial and discretionary processes and the requirements for approval.

Ministerial/By-Right Permits
Ministerial permits, often referred to as by-right permits, are typically required for uses or structures that meet Town requirements. These permits do not require discretionary review and are approved by staff if the project complies with applicable regulations and ordinances.

Ministerial Housing Project Types:
 Accessory Dwelling Unit (ADU) – Building Permit Only
 Jr. Accessory Dwelling Unit (JADU) – Building Permit Only  Senate Bill 9 (SB 9) – SB 9 Application Required
There are no required findings for ministerial projects as long as they meet the Town and State requirements.

Discretionary Permits
Discretionary permits requires review and approval by a decision maker to allow a specific type of land use and/or allow for construction, modification, or use to a building. Examples of discretionary review include residential subdivisions, new residences, planned developments, and mixed-use residential development. As part of the discretionary review process, the project will be reviewed in conformance with applicable ordinances and

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-47 regulations including the Town’s General Plan, Zoning Ordinance, and when applicable the Town’s Residential Design Guidelines (non-hillside), Hillside Development Standards and Guidelines (hillside), Objective Design Standards for Qualifying Multi-Family and Residential Mixed-Use Developments, Affordable Housing Overlay Design Guidelines, planned developments, and specific plans. In addition, the project will be reviewed for compliance with the California Environmental Quality Act (CEQA) which may require preparation of an environmental document and a public review period. A public hearing may also be required to issue a discretionary permit. Examples of discretionary permits related to housing include: Architecture and Site Applications;, Conditional Use Permits;, Variances;, Subdivisions;, Rezones; and General Plan Amendments.

Discretionary Permit Findings Related to Housing
The deciding body must make specific findings and or considerations based on Town Code, and this varies depending upon the scope of project and the type of discretionary permit required.. The following describes the required findings and considerations for discretionary permits related to housing:

Discretionary Review - Architecture and Site Application The goal of the Architecture and Site approval process is to ensure quality design and proper siting of residential and commercial structures which complement the Town environment and to preserve open spaces in the Town.

Per Town Code Section 29.20.145, Architecture and Site approval is required for new construction of any principal building in any zone, including all new residential units. It is also required for exterior alterations or additions in some cases. The Architecture and Site approval process does not apply to ADUs, JADUs, SB 9 units, or projects qualifying for streamlined review pursuant to SB 35.

Town Code Section 29.20.145. Approval required.

The DRC may be the approval authority for discretionary applications, such as an Architecture and Site application dependent upon the scope of the project and whether the project complies with the Residential Design Guidelines and/or Hillside Development Standard and Guidelines. Should a project request an exception(s) to the referenced Town documents, the discretionary application may go straight to the Planning Commission as the deciding body. Pursuant to Town Code Section 29.20.150, the approving body may shall consider the following factors in reviewing an Architecture and Site application:

Architecture and site approval is required in all zones for the following:
(1) New construction of any principal building;
(2) An exterior alteration that changes the architectural style of a single-family and two-family residence. (3) Any exterior alteration or addition to a building excluding:
a. Alterations or additions to a single- and two-family dwelling that do not require approval by the Planning Commission or Development Review Committee pursuant to the Residential Design Guidelines or the Hillside Development Standards and Guidelines; b. Minor exterior alterations to commercial and multifamily buildings. (4) Intensification of land use. For the purposes of this section only, intensification of land use means all changes in use which require more parking and/or results in an increase in peak hour trips for mixed use, multi-tenant commercial, industrial or multifamily development projects if the trips exceed the traffic generation factor assigned to the project at the time of approval and/or an increase of five (5) or more peak hour trips;
(5) Residence conversions;
(6) Any development in a floodplain as required by article IX of this chapter; and as otherwise specified in this article.

Town Code Section 29.20.150. Considerations in review of applications.

The deciding body shall consider all relevant matter including, but not limited to, the following:

HCD Draft Revised Draft 2023-2031 Housing Element
C-48 Appendix C JanuaryNovemberSeptember March 20232024 (1) Considerations relating to traffic safety and traffic congestion. The effect of the site development plan on traffic conditions on abutting streets; the layout of the site with respect to locations and dimensions of vehicular and pedestrian entrances, exits, drives, and walkways; the adequacy of off-street parking facilities to prevent traffic congestion; the location, arrangement, and dimension of truck loading and unloading facilities; the circulation pattern within the boundaries of the development, and the surfacing, lighting and handicapped accessibility of off-street parking facilities. a. Any project or development that will add traffic to roadways and critical intersections shall be analyzed, and a determination made on the following matters:

1. The ability of critical roadways and major intersections to accommodate existing traffic;

2. Increased traffic estimated for approved developments not yet occupied; and

3. Regional traffic growth and traffic anticipated for the proposed project one (1) year after occupancy.
b. The deciding body shall review the application for traffic roadway/intersection capacity and make one (1) of the following determinations:

1. The project will not impact any roadways and/or intersections causing the roadways and/or intersections to exceed their available capacities.

2. The project will impact a roadway(s) and/or intersection(s) causing the roadway(s) and/or intersection(s) to exceed their available capacities.

Any project receiving Town determination subsection (1)b.1. may proceed. Any project receiving Town determination subsection (1)b.2. must be modified or denied if the deciding body determines that the impact is unacceptable. In determining the acceptability of a traffic impact, the deciding body shall consider if the project's benefits to the community override the traffic impacts as determined by specific sections from the general plan and any applicable specific plan.
(2) Considerations relating to outdoor advertising. The number, location, color, size, height, lighting and landscaping of outdoor advertising signs and structures in relation to the creation of traffic hazards and the appearance and harmony with adjacent development. Specialized lighting and sign systems may be used to distinguish special areas or neighborhoods such as the downtown area and Los Gatos Boulevard.
(3) Considerations relating to landscaping. The location, height, and materials of walls, fences, hedges and screen plantings to einsure harmony with adjacent development or to conceal storage areas, utility installations, parking lots or unsightly development; the planting of ground cover or other surfacing to prevent dust and erosion; and the unnecessary destruction of existing healthy trees. Emphasize the use of planter boxes with seasonal flowers to add color and atmosphere to the central business district. Trees and plants shall be approved by the Director of Parks, Forestry and Maintenance Services for the purpose of meeting special criteria, including climatic conditions, maintenance, year-round versus seasonal color change (blossom, summer foliage, autumn color), special branching effects and other considerations.
(4) Considerations relating to site layout. The orientation and location of buildings and open spaces in relation to the physical characteristics of the site and the character of the neighborhood; and the appearance and harmony of the buildings with adjacent development. Buildings should strengthen the form and image of the neighborhood (e.g., downtown, Los Gatos Boulevard, etc.). Buildings should maximize preservation of solar access. In the downtown, mid-block pedestrian arcades linking Santa Cruz Avenue with existing and new parking facilities shall be encouraged, and shall include such crime prevention elements as good sight lines and lighting systems. (5) Considerations relating to drainage. The effect of the site development plan on the adequacy of storm and surface water drainage.

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-49 (6) Considerations relating to the exterior architectural design of buildings and structures. The effect of the height, width, shape and exterior construction and design of buildings and structures as such factors relate to the existing and future character of the neighborhood and purposes of the zone in which they are situated, and the purposes of architecture and site approval. Consistency and compatibility shall be encouraged in scale, massing, materials, color, texture, reflectivity, openings and other details. (7) Considerations relating to lighting and street furniture. Streets, walkways, and building lighting should be designed so as to strengthen and reinforce the image of the Town. Street furniture and equipment, such as lamp standards, traffic signals, fire hydrants, street signs, telephones, mail boxes, refuse receptacles, bus shelters, drinking fountains, planters, kiosks, flag poles and other elements of the street environment should be designated and selected so as to strengthen and reinforce the Town image. (8) Considerations relating to access for physically disabled persons. The adequacy of the site development plan for providing accessibility and adaptability for physically disabled persons. Any improvements to a nonresidential building where the total valuation of alterations, structural repairs or additions exceeds a threshold value established by resolution of the Town Council, shall require the building to be modified to meet the accessibility requirements of title 24 of the California Administrative Code adaptability and accessibility. In addition to retail, personal services and health care services are not allowable uses on non-accessible floors in new nonresidential buildings. Any change of use to retail, health care, or personal service on a non-accessible floor in a nonresidential building shall require that floor to be accessible to physically disabled persons pursuant to the accessibility requirements of title 24 of the California Administrative Code and shall not qualify the building for unreasonable hardship exemption from meeting any of those requirements. This provision does not affect lawful uses in existence prior to the enactment of this chapter. All new residential developments shall comply with the Town's adaptability and accessibility requirements for physically disabled persons established by resolution. (9) Considerations relating to the location of a hazardous waste management facility. A hazardous waste facility shall not be located closer than 500 feet to any residentially zoned or used property or any property then being used as a public or private school primarily educating persons under the age of 18.

An application for such a facility will require an environmental impact report, which may be focused through the initial study process.

In addition to the Architecture and Site application considerations the following findings and considerations must be made with an Architecture and Site application.
 CEQA;
 Required consistency with the Town’s General Plan;
 Compliance with Zoning Regulations;
 Compliance with the Residential Design Guidelines (non-hillside) or Hillside Development Standard and Guidelines (when applicable); and
 Compliance with the Objective Design Standards for the Rreview of Multi-Family Housing and Mixed-Use Development applications (when applicable).

As written, the scope of considerations that the approval authority may review during the decision-making process is broad and leaves significant room for interpretation. This process has served the community well in ensuring that projects reflect the Town’s character and design values. However, the subjective nature of the “considerations” is a constraint to new residential development because it reduces the approval certainty for projects. Therefore, the Housing Element includes a program to modify the Zoning Code to require multi-family and mixed-use projects to be subject to the Town’s objective design standards, rather than current the Architecture and Site considerations.

Discretionary Review - Conditional Use Permit

HCD Draft Revised Draft 2023-2031 Housing Element
C-50 Appendix C JanuaryNovemberSeptember March 20232024 The Conditional Use Permit (CUP) process provides additional consideration to ensure compatibility for uses that have a potential to have a greater impact on surrounding uses. The following residential development types require a CUP:
 Residential units as part of a mixed-use project One-family dwelling (in a mixed-use project) – Zones: O, C-1, C-2, and CH
Two-family dwelling (in a mixed-use project) – Zones: O, C-1, and CH Multi-family dwelling (in a mixed-use project) – Zones: O, C-1, C-2, and CH  Mobile home park – Zone: RM
 Caretaker residence – Zones: RC and HR
 Conversion of a mobile home park to any other use – Zones: R-M and RHM  Live/work units – Zones: O, C-1, C-2, CH and LM
The DRC or PC are the approval authority for CUP applications, depending on the scope of the project. Pursuant to Town Code Section 29.20.190, the approval authority must make the following findings when granting a CUP:

Town Code Section 29.20.190. Findings and decision.
(a) The deciding body, on the basis of the evidence submitted at the hearing, may grant a conditional use permit when specifically authorized by the provisions of this chapter if it finds that:
(1) The proposed uses of the property are essential or desirable to the public convenience or welfare; (2) The proposed uses will not impair the integrity and character of the zone; (3) The proposed uses would not be detrimental to public health, safety or general welfare; and (4) The proposed uses of the property are in harmony with the various elements or objectives of the general plan and the purposes of this chapter.
(5) A hazardous waste facility proposal is subject to the California Health and Safety Code, Article 8.7, Section 25199—25199.14 and shall be consistent with the Santa Clara County Hazardous Waste Management Plan.

In addition to the Conditional Use Permit application findings following findings and considerations must be made:
 CEQA;
 Required consistency with the Town’s General Plan; and  Compliance with Zoning Regulations.

The required finding #2 – regarding integrity and character of the zone – is open to interpretation and therefore has the potential to constrain housing development. This Housing Element includes a program to revise the required findings for multi-family and mixed use projects to be based on objective standards that provide certainty in outcomes.

Discretionary Review - Variance
Town Code Sec. 29.20.170. Same—Findings and decision.

The deciding body, on the basis of the evidence submitted at the hearing, may grant a variance if it finds that:
(1) Because of special circumstances applicable to the property, including size, shape, topography, location or surroundings, the strict application of this ordinance deprives such property of privileges enjoyed by other property in the vicinity and under identical zone; and (2) The granting of a variance would not constitute a grant of special privileges inconsistent with the limitations upon other properties in the vicinity and zone in which such property is situated.

In addition to the Variance application findings the following findings and considerations must be made:

CEQA;
Required consistency with the Town’s General Plan; and
Compliance with Zoning Regulations.

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-51 Discretionary Review - Planned Development
Town Code Sec. 29.80.080. Limitations on use of a planned development. (a) The PD overlay is not intended for:
(1) Uses inconsistent with the general plan;
(2) Proposed development that is reasonably feasible under the existing Town Code; or (3) A deviation of standards applicable to similar types of development. (b) An application for a PD shall only be considered by the recommending and deciding bodies if it meets the purpose and intent of this division, and meets one or more of the following criteria:
(1) A project that provides a public benefit to the citizens of the Town. (2) Property that is designated within the Hillside Development Standards and Guidelines Area Map. (3) Property that has a historical designation or is within a Landmark Historic Preservation (LHP) Overlay Zone.
(4) Property with a tree or "stand of trees" that is unique, historical, ecological, or of aesthetic value, as determined according to standards set forth in the Town's Tree Protection Ordinance. (5) Property that contains a stream, channel, or creek that supports or has supported riparian vegetation, fish, and/or aquatic life as further defined in the guidelines and standards for land use near streams. (6) A property with a geological hazard or within a fault zone.

Town Code Sec. 29.80.095. Findings.

The deciding body, on the basis of the totality of the evidence and testimony submitted at the hearing, may adopt a PD if all of the following findings can be made:
(1) The proposed PD is in compliance with all sections of this division. (2) The proposed PD is in conformance with the goals, policies, and applicable land use designation(s) and standards of the Town's general plan.
(3) The proposed PD is in conformance with all other applicable land use regulations, including but not limited to Town Council adopted guidelines, except as otherwise provided in section 29.80.095(4). (4) Any proposed use or development standards that deviate from the underlying zoning district(s) result in innovative and creative site planning to develop:
a. Housing with a minimum of forty (40) percent of the units affordable to households of very low, low, or moderate income; or
b. Mixed commercial, or mixed residential, or mixed commercial and residential development; or c. A development designed and sited to protect, preserve and enhance conservation and enrichment of hillsides, natural and/or historic resources, ridgelines, a tree or stand of trees, creek and riparian corridors, geologic hazard or fault zone, and open space; or d. A project that maximizes open space; or
e. The proposed PD provides a public benefit to the citizens of the Town.

In addition to the Planned Development application findings the following findings and considerations must be made:

CEQA and
 Required consistency with the Town’s General Plan.

Story Poles
The Town requires installation of height story poles and netting for all new residential (excluding single-story accessory structures) and non-residential buildings; residential second story additions; and nonresidential additions exceeding 100 square feet. This requirement is intended to demonstrate the planned rooflines and heights and massing of the proposed structure(s) and provide visual notice to the community of a forthcoming land use public hearing. The placement of story poles is extremely helpful and important during the Town’s review of applications for new development. Story poles enhance understanding of the project for Town residents, staff advisory bodies, and decision-making bodies. However, the cost of story pole and netting

HCD Draft Revised Draft 2023-2031 Housing Element
C-52 Appendix C JanuaryNovemberSeptember March 20232024 installation, maintenance throughout the public hearing process, and additional time added to the process for installation can be viewed as a constraint for development. Implementation Program BM requires the review of the Town’s Story Pole and Netting Policy and exploration of options for residential or mixed-use projects with affordable housing to reduce the associated cost of installing story poles.

Public Art for Private Developments
A robust public art program fosters economic development, creates vital public spaces, and promotes general health and welfare by contributing to a more desirable community in which to live, work, and recreate. Wellconceived and executed works of art that are integrated into their sites and accessible to the public enhance the value of development projects, create greater interest in leased space, promote cultural tourism, create a sense of place, and make a lasting visible contribution to the intellectual, emotional, and creative life of the community at large, thereby helping to mitigate the impacts of development. The experience of public art makes public areas of buildings and grounds more inviting and engaging. There is a growing national trend of including private developments in a public art funding requirement by ordinance. In California, more than 48 cities have such an ordinance or policy.

On May 4, 2021, the Town Council adopted Ordinance 2318 amending Chapter 25 of the Town Code to establish a public art requirement for private developments. The requirement for public art will apply to the following types of development:
(a) New commercial developments (including mixed-use projects), including new construction, and additions and remodels that add more than 50% square footage; and (b) New residential projects of three or more units, including new construction, and additions and remodels that add more than 50% square footage.
(c) Notwithstanding subsections (a) and (b) above, this Chapter shall not apply to:
(i) Affordable housing developments, or, if affordable housing is a part of the development, the affordable housing units shall be subtracted from the valuation of the project as in subsection (d) below; (ii) Historic renovations;
(iii) Repair or reconstruction of structures damaged by flood, fire, wind, earthquake, or other disaster; (iv) Seismic retrofit projects;
(v) Single family and two-family residential units;
(vi) Accessory dwelling units or junior accessory dwelling units; (vii) Any project exempted by Federal or State law;
(viii) Municipal facilities; and
(ix) Buildings or structures primarily used for religious worship.

A developer may satisfy the requirements of Chapter 25 of the Town Code by constructing or installing on-site public art valued at one percent of the building permit valuation.

The public art requirement for private developments can be viewed as a constraint to producing housing. The Town’s adopted Ordinance provided an exemption to the requirement to affordable housing developments. In addition, the Town Code allows for an exemption from the public art requirement if affordable housing is a part of the development and the affordable housing units shall be subtracted from the valuation of the project. Additional exemptions from the requirement for residential projects are described above.

SB 9 California Housing Opportunity and More Efficiency (HOME) Act SB 9, also known as the California Housing Opportunity and More Efficiency (HOME) Act, is a Sstate bill that requires cities to allow one additional residential unit on parcels zoned for single-dwelling units. Since the adoption of this section of the Government Code, the Town has adopted a permanent ordinance implementingn interim SB 9 ordinance and is in the process of developing a permanent ordinance for adoption by the end of 2022.

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-53 SB 35 Streamlining
(Government Code section 65913.4) allows qualifying development projects with a specified proportion of affordable housing units to move more quickly through the local government review process and restricts the ability of local governments to reject these proposals. The bill creates a streamlined approval process for qualifying infill developments in localities that have failed to meet their RHNA, requiring a ministerial approval process, removing the requirement for CEQA analysis, and removing the requirement for discretionary entitlements granted by the Planning Commission.

Since the adoption of this section of the Government Code, the Town has received one application under these provisions. The Town has included Program AM in the Housing Element to prepare an SB35 checklist and written procedures for processing SB35 applications.

SB9 California Housing Opportunity and More Efficiency (HOME) Act SB9, also known as the California Housing Opportunity and More Efficiency (HOME) Act, is a state bill that requires cities to allow one additional residential unit on parcels zoned for single-dwelling units. Since the adoption of this section of the Government Code, the Town has adopted an interim SB9 ordinance and is in the process of developing a permanent ordinance for adoption by the end of 2022.

Requests to Develop at Densities Below Those Permitted
New State Housing Element law now requires the non-governmental constraints analysis to evaluate developer requests to build at densities below the density identified in the Housing Element sites inventory. In Los Gatos, properties generally develop around the mid to high range of allowable densities. Requests to develop at densities below those permitted are not an issue in Los Gatos.

Length of time between Application Approval and Building Permit Issuance New Housing Element law now also requires an examination of the length of time between receiving approval for a housing development and submittal of an application for building permits. The time between application approval and building permit issuance is influenced by a number of factors, none of which are directly impacted by the Town. Factors that may impact the timing of building permit issuance include: required technical or engineering studies; completion of construction drawings and detailed site and landscape design; securing construction and permanent financing; and retention of a building contractor and subcontractors.

The majority of residential permits in Los Gatos are for single-family homes, with building permit issuance generally taking eight to 14 months after Planning approvals. Hillside properties may take a few months longer due to the need for technical and engineering studies. Among the Town’s recent multi-family developments, the time between approvals and permit issuance has averaged 12 to 18 months. In Los Gatos, most approved projects are constructed in a reasonable time period.

Infrastructure Constraints
To support growth under the Housing Element, it is critical that public infrastructure can accommodate new development. The Town of Los Gatos does not anticipate that the provision of public services, such as water, sewer, and storm drains is a constraint to the production of new housing.

Water
Water supply demand and infrastructure was analyzed under the 2040 General Plan Environmental Impact Report (EIR), which considered a larger population growth than proposed under the Housing Element Update.

The San Jose Water Company provides water service to the Town. San Jose Water Company’s 2015 Urban Water Management Plan (UWMP) outlines the availability of water supplies for the service area which includes the City of San Jose, the City of Cupertino, the City of Campbell, City of Monte Sereno, the City of Saratoga, the Town of Los Gatos, and parts of unincorporated Santa Clara County.

Pursuant to the 2015 UWMP, San Jose Water Company has enough water to supply capacity to meet current demands. The plan projects usage out to 2040, the same year as the General Plan horizon. From 2020 to 2040, the plan predicts that there would be adequate supply to meet water demand in a normal year. Projected water

HCD Draft Revised Draft 2023-2031 Housing Element
C-54 Appendix C JanuaryNovemberSeptember March 20232024 demand in a normal year for the San Jose Water Company service area in 2040 is 55,213 acre-feet per year (AFY) and future water storage is predicted to be 55,213 AFY. Approximately half of San Jose Water Company’s long-term water supply is provided by the Santa Clara Valley Water District (SCVWD) each year, while approximately one-third is generally provided through groundwater. Water supply for the Town of Los Gatos is comprised primarily of imported water which serves the eastern Los Gatos area and approximately half is local surface water.

Sewer
The Town’s wastewater is collected and treated by the West Valley Sanitation District (WVSD), which then transports wastewater to the San Jose-Santa Clara Regional Wastewater Facility (wastewater treatment plant).

According to the 2040 General Plan EIR (Section 4.16, Utilities and Service Systems), the wastewater treatment plant treats an average of 110 million gallons per day (mgs), with a design capacity of up to 167 mgd.

The 2040 General Plan considered a larger population increase (approximately 8,971 residents) than considered by the Housing Element Update. According to the 2040 General Plan EIR, the West Valley Sanitation District’s Capital Improvement Plan has ongoing plans for replacement and upgrade of old sewer lines and lift equipment.

The general maintenance and correction of deficiencies are funded by user fees; therefore, new development would be required to pay impact fees for system expansion that would accommodate the increased growth of the Town. Impact fees on new development would ensure that the wastewater collection system receives necessary upgrades to accommodate the additional population.

C.2 Local Housing Programs
State Housing Element law requires that an analysis of governmental constraints on housing production include local government programs that regulate housing development in any way, including imposing housing cost limitations or encouraging changes in density. Los Gatos has six local housing programs that are potential constraints on market-rate housing production in the Town. The Below Market Price Program, Affordable Housing Fund, Rental Dispute Resolution Program, Density Bonus Program, State Density Bonus Program, and the Affordable Housing Overlay are discussed below.

Below Market Price (BMP) Program
The BMP Program implements the Town of Los Gatos’s inclusionary zoning ordinance, which requires that a portion of new residential construction in Los Gatos be dedicated to affordable housing. Los Gatos’s inclusionary zoning ordinance was adopted in 1979 as one of the first of such programs in California.

The BMP Program promotes the development of affordable housing units by providing standards and guidelines that require the development of a certain number of quality affordable units per rental or owner development project, based on the proposed number of market rate units. The BMP Program requires the development of affordable housing where sales and rents cannot be more than 80 percent of the current HUD Fair Market Rents (FMR) as determined by the Santa Clara County Housing Authority. The BMP Program allows low- and moderate-income households the opportunity to purchase low- and moderate-income housing in Los Gatos.

The BMP Program requirements apply to all residential development projects that include five or more residential units or parcels which involve:
 New construction of ownership or rental housing units, including mixed-use developments and addition of units to existing projects.
 Subdivision of property for single family or duplex housing development.  Conversion of rental apartments to condominiums or other common interest ownership.  Conversion of non-residential use to residential use.

The intent of the BMP Program is to provide a supply of affordable housing for households who work or currently reside in Los Gatos. However, there may be circumstances when the construction of a BMP unit is impractical.

The Town, in limited circumstances, at its sole discretion, may consider an in-lieu payment alternative to the required BMP for a project with an underlying zone of HR or a residential project, mixed-use project, multiplefamily dwelling project, residential condominium project, condominium conversions, and all residential planned

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-55 development projects with five to nine units with an underlying zone of HR.. The required in-lieu fee shall be paid prior to or at time of final occupancy as follows:

Multi-Family Projects: Prior to occupancy of each phase, a proportional amount of fees shall be paid, as determined during the Planning approval process; and
Single-Family Projects: At time of final occupancy for each unit. The Town Council, in limited circumstances, at its sole discretion, may consider off-site construction of BMP units for continuum care facilities and for residential projects, mixed-use projects, multiple-family dwelling projects, residential condominium projects, condominium conversions, and residential planned development projects with five (5) to nine (9) units with an underlying zone of HR that have provided sufficient justification to the Town that an on-site BMP unit is not viable.

The developer of “for sale” BMP units shall enter into an affordability agreement with the Town. The agreement will ensure that the BMP units are sold to qualified buyers and will be released by the Town through the escrow process once the BMP is sold to a qualified buyer. Because the BMP Program regulates the number of affordable units required as part of new residential construction in Los Gatos, the program could be considered a constraint on market-rate housing development. However, because the BMP Program requires the construction of affordable units with every new qualifying development, the Town sees this program not as a constraint, but as an opportunity to create and preserve affordable housing for the community. Based on a track record of successful development and preservation of affordable housing through the BMP Program, Los Gatos does not consider the program to be a constraint on affordable housing development; nevertheless, the Town proposes an implementation program N to study the BMP Program and implement recommendations to augment and improve it in order to facilitate the construction of more units.

The program is also an incentive to encourage further residential development, as BMP units in a project are not included when calculating the allowable density. This Housing Element includes an action to amend Town’s existing Density Bonus Ordinance to reflect current State Law and to conduct a study to evaluate the Town’s Density Bonus Ordinance, the implementation of the ordinance, and its impact on producing affordable units, as well as providing for incentives beyond State requirements.

The 2013 court case, Latinos Unidos del Valle de Napa y Solano v. County of Napa found that inclusionary units required by a local jurisdiction’s inclusionary ordinance qualify as affordable units for the purposes of Density Bonus Law. Therefore, developments that are subject to the Town’s BMP requirements are able to benefit from incentives and concessions provided by State Density Bonus Law.

Number of Units Required Under the BMP Program
As described above, Aall residential projects, mixed-use projects, multiple family dwelling projects, residential condominium projects, condominium conversions, and all residential planned development projects that include five or more residential units or parcels are required to participate in the BMP Program. The requirements for participation increase by development size:

1. Five to 19 market rate units: The developer shall provide a minimum number of BMP units equal to 10 percent of the number of market rate units;

2. 20 to 100 market rates units: The developer shall provide a minimum of BMP units as determined by the following formula: Number of BMP units = (.225 x total # of market rate units) - 2.5. This formula acts to increase the number of BMP units required, as a percentage of market-rate units, from 10 percent to 20 percent over the range of 20 to 100 market rate units; and

3. 101 units or more: The developer shall provide a minimum number of BMP units equal to 20 percent of the number of market rate units.

BMP dwellings within a project of rental units should also be rental units. BMP units within a project of owneroccupied units should also be designated as units for purchase. BMP units within a project that contains both rental and owner-occupied units shall also be designated as both rental and as units for purchase, in a ratio similar to that of the market rate units. The Town and developer may negotiate to provide more BMP units than required by the guidelines.

Affordability Levels Under the BMP Program for Owner Occupied Units BMP units shall be priced to be affordable to households in two income categories:

HCD Draft Revised Draft 2023-2031 Housing Element
C-56 Appendix C JanuaryNovemberSeptember March 20232024

1. Moderate Income Households: Those whose income is above 80 percent, but no greater than 120 percent, of the Median Family Income (MFI); and

2. Low Income Households: Those whose income is above 50 percent, but no greater than 80 percent, of the MFI.
50 percent of the units in a project should be priced to be affordable to Moderate Income Households and and 50 percent should be priced to be affordable to Low Income Households. Whenever the calculations result in fractional units, then the number of units priced to be affordable to Low Income Households shall be rounded up to the next whole number, and the number of units priced to be affordable to Moderate Income Households shall be rounded down to the next whole number, including zero. An example of this formula is provided below in Table C-120.

Table C-1210 Inclusionary Requirements
Total Number of BMP
Units in Project
Units Priced for Low
Income Households
Units Priced for Median
Income Households
1 1 0
2 1 1
3 2 1
Source: Town of Los Gatos, Below Market Price Program Guidelines.

In order to be eligible to purchase an owner-occupied BMP unit, an applicant’s annual household income must be no greater than 120 percent of the MFI, adjusted for household size, as defined by the United States Department of Housing and Urban Development (HUD) for the San Jose, CA Primary Metropolitan Statistical Area (PMSA).

Affordability Levels Under the BMP Program for Rental Units Rent for a BMP rental unit may not exceed 80 percent of the most current Fair Market Rents as determined by the Santa Clara County Housing Authority.

In order to be eligible to rent a BMP rental unit, a household’s annual income must be no greater than one hundred and 120 percent of the MFI, adjusted for household size, as defined by the HUD for the San Jose, CA PMSA. Priority is given to those households whose income is less than 50 percent of the MFI.

Tenant selection is managed by the property owner or manager of the development. An application from a tenant selected by the property owner or manager is forwarded to the administrator of the Town’s BMP Program for verification of income eligibility. Once a year, an annual re-certification of income is completed to verify that tenants are eligible to remain in the BMP rental unit.

Tenants of BMP rental units are eligible to receive conciliation and mediation services provided by Project Sentinel through the Town's Rental Dispute Resolution Program.

Affordable Housing In-Lieu Fee Fund
In-lieu fees are paid into the Town’s Affordable Housing Fund and are calculated as six percent of building permit valuation as determined by the Building Official. As previously noted, these fees may be paid by developers instead of building an affordable housing unit(s) under the BMP Program, in limited circumstances and at the sole discretion of the Town. Use of the Below Market Price Housing In-lieu Fees includes, but is not limited to:
 Providing financial assistance for home repairs for lower income households, low-income seniors and lowincome mobile homeowners (Implementation Programs IJ and AJU).  Conducting a survey of the housing conditions in Town to identify units in need of rehabilitation or replacement (Implementation Program AK).
 Purchasing housing units to make them affordable to low and/or moderate-income households (Implementation Program PT).
 Contributing funding to support countywide programs that provide home repair and accessibility improvements for lower income households (Implementation Program AUS).  Fee deferrals or reductions for affordable housing (Implementation Program OS).

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-57  Allocating a percentage of the funding to subsidize housing for extremely low-income households (Implementation Program NP).
 Funding administration of the program, as approved by the Town Council in its annual budget process.  Waiving building fees when an ADU is deed restricted for very low- and low-income households (Implementation Program QU).

The Town has not received negative feedback from developers on the Town’s inclusionary ordinance requirements in terms of affecting project viability. The BMP Program is similar to surrounding cities with a sliding scale for the required number of affordable units, and is generally accepted by the regional development community, as shown in Table C-7132. Developments that fall under the BMP Program requirement would be eligible for State density bonus provisions (Government Code § 65915) that help support the financial viability of providing affordable units. This additional fee levied on developers may be considered a constraint on housing development; however, the fees are paid into a fund that will be used to develop more affordable housing in Los Gatos. Given the low rate of construction of affordable units, the Town proposes to study the BMP Program and implement recommendations to augment and improve it in order to facilitate the construction of more units.

Table C-9 1321 Inclusionary Requirements
Rental Dispute Resolution Program
The Los Gatos Rental Dispute Resolution Program provides conciliation, mediation and arbitration services for both renters and landlords in Los Gatos. The program is administered by Project Sentinel, a local non-profit Reorganization contracted by the Town. This program is not considered a constraint on housing development in Los Gatos. Los Gatos renters may also contact Neighborhood Housing Services Silicon Valley for assistance.

The Town helps preserve affordable rental housing costs through the Rental Mediation and Dispute Resolution Ordinance which applies to rental complexes of three or more units. The ordinance sets an annual limit on rent increased to five percent unless the landlord is able to demonstrate capital or financing costs to justify a greater increase. The Town has similar rent controls for mobile home units.

Mobile homes are an affordable housing resource in the Town of Los Gatos. They 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 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 moderateincome 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.

State Mandated Density Bonus Ordinance
The Density Bonus Program allows qualified projects to add up to 100 percent of the units provided by the General Plan land use designation as long as these additional units are restricted to seniors, disabled persons, very low and/or low-income households.

Over the last Housing Element cycle, the Town approved the North 40 Phase One development which included 49 very-low income and one moderate-income manager unit as density bonus units.

The Town adopted the State Density Bonus Ordinance in June 2012. The program allows densities, incentives, concessions and maximum parking standards. In addition, the Town modified the program to apply to senior and Jurisdiction Inclusionary Requirement
Campbell 15%
San Jose 15% (20% for off-site)
Los Gatos 10-20%
Cupertino 15-20%

HCD Draft Revised Draft 2023-2031 Housing Element
C-58 Appendix C JanuaryNovemberSeptember March 20232024 physically handicap populations. The State Density Bonus Program provides opportunities to build additional, affordable units in Los Gatos; consequently, this program is not considered a constraint on housing development.

The Town is including an implementation Program to amend the Density Bonus Ordinance to comply with new requirements of State law since the 2012 ordinance was adopted.

Affordable Housing Overlay Zone
The Town adopted the AHOZ, and it applies to one property in the Housing Sites Inventory (see Table 6-2110 Knowles Avenue). The AHOZ allows densities (up to 20 units per acre on designated sites), development standards, and concessions that will encourage affordable housing. The Housing Element includes an implementation program to increase the maximum allowable density from 20 dwelling units per acre to 40 dwelling units per acre.

Constraints on Housing for Persons with Disabilities
State law requires that the Housing Element analyze governmental constraints to housing for persons with disabilities. How a jurisdiction defines “family” in its zoning regulations can be a potential constraint to facilitating housing for persons with disabilities. The existing definition of “family” in the Town Code is “one or more persons who comprise a single housekeeping unit” or “households of six or fewer persons living in a residential care facilities small family home as defined by the California Community Care Facilities Act.” In Los Gatos, group homes are defined by the Town Code as synonymous with small family home residential care facilities, which are defined by the Town Code as “a residential care facility in the dwelling of a licensee in which care or supervision is provided for six or fewer persons. Whether or not unrelated persons are living together, a residential facility that serves six or fewer persons shall be considered a residential use of property for the purposes of this article. In addition, the residents and operators of such a facility shall be considered a family for the purposes of any law or zoning ordinance which relates to the residential use of property.” Group homes are permitted by right in all residential districts, consistent with State law, and are permitted with a CUP in the Office (O), Neighborhood Commercial (C-1), Central Business District (C-2), and Restricted Highway Commercial (CH) zones. The Town imposes no spacing or concentration requirements on any of the allowed residential care facilities. Large family home residential care facilities, which have a capacity for seven to 12 children or seven to 15 adults are allowed in all districts with a CUP, except where large family homes are prohibited in the RMH, LM, and CM districts.

The CUP requirement for residential care facilities for seven or more is a housing constraint. Implementation Program APBC, Zoning Text Amendments for Special Needs Housing, has been added to allow group homes of seven and more residents by-right in all residential zones conforming with HCD’s Group Home Technical Advisory (Dec 2022).

Generally, the Town facilitates housing for persons with disabilities by following the accessibility requirements of the California Title 24 Multi-family Accessibility Regulations for multi-family housing of three or more units.

Housing rehabilitation assistance and accessibility improvements are provided through the Town’s Community Services and Community Development departments.

The Town encourages accessibility improvements by requiring that specific design features be incorporated into all new residential home projects as a condition of approval. These requirements include:
 A wooden backing that is no smaller than 2 inches by 8 inches in all bathroom walls, at water closets, showers, and bathtubs. It will be located 34 inches from the floor to the center of the backing, suitable for the installation of grab bars.
 All passage doors of at least 32 inches wide on the accessible floor.  A primary entrance that is a 36-inch-wide door, including a five-foot by five-foot level landing, no more than one inch out of plane with the immediate interior floor level, with an 18-inch clearance.

In 2013, the Town adopted a procedure for requesting reasonable accommodation for persons with disabilities seeking equal housing access under the Federal Fair Housing Act and the California Fair Employment and Housing Act and in accordance with State housing law. A request for reasonable accommodation may include a modification or exception to the standards and practices for the siting, development, and use of housing or housing-related facilities that would eliminate regulatory barriers to accessible housing. Requests for reasonable

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-59 accommodation shall be reviewed by the Planning Director within 45 days of the request. However, if the request is concurrent with a discretionary land use application, then the body overseeing the discretionary land use application will also make a determination on the reasonable accommodation request. There are seven mandatory criteria for granting a reasonable accommodation request:
 The housing will be used by an individual disabled under the Federal Fair Housing Act and the California Fair Employment and Housing Act.
 The request is necessary to make specific housing available to an individual with a disability.  The request would not impose an undue financial or administrative burden on the Town.  The request would not require a fundamental alteration in the nature of a Town program or law, including but not limited to land use and zoning.
 There would be no impact on surrounding uses.
 Due to physical attributes of the property or structures the request is necessary.  There is no alternative reasonable accommodation which may provide an equivalent level of benefit.

By adopting a formal procedure, the Town has provided an objective process with clear directions for both the applicant and the decision makers. This is a benefit to persons with disabilities hHowever, one of the mandatory criteria requiring “no impact on surrounding uses” is subjective and could be considered a constraint for granting a reasonable accommodation request. Therefore,, Implementation Program APBC, Zoning Text Amendments for Special Needs Housing, has been added modifying Municipal Town Code Section 29.10.530(a) to remove criteria number five regarding impact on surrounding uses. By removing the criteria of no impact on surrounding uses it will reduce the constraint.

Emergency Shelters and Low Barrier Navigation Centers
An emergency shelter is a facility that provides shelter to homeless families and/or homeless individuals on a limited short-term basis. SB 2 (2007) requires that unless adequate shelter facilities are available to meet a jurisdiction's needs (based on the most recent point-in-time count of unsheltered persons), emergency shelters must be allowed by-right in at least one zone that has adequate capacity for development of new shelters.

Emergency shelters are currently a permitted use in the CM (Controlled-Manufacturing) zone. However, newly enacted AB 2339 (2022) requires that emergency shelters be permitted by-right in a zone where other residential uses are permitted. While the CM zone allows for live/work units, based on further analysis, the LM (CommercialIndustrial) zone better fits the intent of the AB 2339 requirements. Therefore, a program has been added to the Housing Element to allow emergency shelters as a permitted use in the LM zone. The following analysis provides further information on the LM zone and its potential for shelter development.

According to the 2022 Point-in-Time Count for Santa Clara County, there were an estimated 58 unsheltered people residing in Los Gatos. Based on the Town’s maximum shelter size of twenty beds, a minimum of three shelters would be necessary to accommodate the unsheltered population. Based on the standard of approximately 200 square feet of site area per person established by AB 2339, a total of 11,600 square feet (0.27 acres) divided among three parcels is necessary. The LM zone consists of 55 parcels ranging from 4,600 square feet to 132,007 square feet. The LM parcels along University Avenue generally bounded by Blossom Hill Road to the north and Roberts Road/Andrews Street are appropriate for emergency shelter development. About 20 parcels in this area range in size from 4,600 square feet to 10,000 square feet. These parcels are located directly adjacent to multi-family residential zones to the east and C-1 zoned parcels to the west (where multi-family residential units are allowed as part of mixed-use projects). This area has access to services located in adjacent commercial areas and access to Valley Transportation Authority Route 27 bus stops within 0.25 miles. The median age of structures in this area is 65 years and there are eight parcels with an improvement-to-land value ratio (ILR) below 1.0. An ILR below 1.0 means the improvements on the site are worth less than the land, and generally indicates a lack of recent investment in repairs and renovations. For these reasons, staff believes that there is potential for adaptive reuse as shelters for these LM zoned parcels. Additionally, these parcels are not located in a Very High Fire Hazard Area or in an area at risk of flooding. Further, the majority of parcels in this area have service-related commercial uses and therefore, do not have the hazardous waste contamination concerns associated with some industrial uses.

Emergency shelters in Los Gatos are currently subject to the following requirements (Municipal Code Section

29.70.220(4)):

HCD Draft Revised Draft 2023-2031 Housing Element
C-60 Appendix C JanuaryNovemberSeptember March 20232024  Twenty (20) or fewer beds;
 Six (6) or fewer administrative staff members or employees;  Operating hours limited from 5:00 p.m. to 9:00 a.m. daily;  Conforming to all applicable building and housing codes, as determined by the Building Official.

As part of the implementation program, the Town will also review these standards against state law to ensure that they align with all State requirements.

AB 101, adopted in 2019, requires approval 'by right' of low barrier navigation centers that meet the requirements of State law. A “Low Barrier Navigation Center” means a Housing First, low barrier, service-enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing.

If the City receives applications for these uses, it will process them as required by State law. Program APBC, Zoning Text Amendments for Special Needs Housing, has been included in the Housing Element to develop by right procedures for processing low barrier navigation centers.

Employee Housing
California Health and Safety Code Section 17021.5 (Employee Housing Act) requires jurisdictions to permit employee housing for six or fewer employees as a single-family use. Employee housing shall not be included within the zoning definition of a boarding house, rooming house, hotel, dormitory, or other similar term that implies that the employee housing is a business run for profit or differs in any other way from a family dwelling.

Jurisdictions cannot impose a CUP, variance, or other zoning clearance of employee housing that serves six or fewer employees that is not required of a family dwelling of the same type in the same zone. The Town’s Zoning Code allows residential care facility, small family home by right in all residential zones.

Any zone in the Town that allow agriculture uses, must comply with California Health and Safety Code Section 17021.6, requiring employee housing consisting of no more than 12 units or 36 beds to be permitted in the same manner as other agricultural uses in the same zone. Implementation BC has been added to address this requirement.

Farmworkers
The Town of Los Gatos does not currently have any identified farmworkers. Given the lack of farmworkers in the community, the Town has not identified a need for specialized farmworker housing beyond overall programs for housing affordability.

C.3 Non-Governmental Constraints to Housing
Development
Market constraints to housing development in Los Gatos are the primary non-governmental impediment to housing production. The Town is located near Silicon Valley jobs and offers residents desirable amenities such as an historic downtown and a school district in which student performance ranks in the top four percent of the State.

Development Costs
In January 2022, the Santa Clara County Planning Collaborative distributed a survey to Santa Clara County jurisdictions to better understand the fees and processing times involved in the development of single-family and multi-family housing. Fourteen out of sixteen jurisdictions responded with locally collected data, which Collaborative staff used to identify major trends and produce data tables1. Additionally, the real estate economics 1 Santa Clara County Planning Collaborative, 2022. Summary of Constraints Survey Data. citiesassociation.org/documents/constraints-survey-datasummary-2022

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-61 consulting firm Century Urban conducted independent research on land and development costs2. Data and preliminary reports can be found on the Collaborative website: citiesassociation.org/constraints.

The cost of development is generally high in Santa Clara County and represents a significant constraint on the production of both single-family and multi-family housing. According to analysis by Century Urban, average development costs for single-family homes in the county range from $1,667,000 to $5,910,000. The cost of land and the size of the units are the two factors causing the most variance. Multi-family development costs are also quite high, though lower on a per unit basis compared to single family homes. Based on a survey of local development costs, Century Urban estimates the average cost per unit for a 10-unit prototype at $726,000 to $846,000. The average cost per unit to develop a 100-unit building ranges from $672,000 to $792,000.

Jurisdictions were asked to estimate development fees based on the following hypothetical housing types and related detailed assumptions:
 Single-Family: A new single-family house on an empty lot, 2,600 square feet or 5,000 square feet, in an existing neighborhood with no significant grading or other complicating factors.  Small Multi-family: A project that includes 10 units in one building on one acre, where no zoning changes are required and permitting is by-right with medium complexity.  Large Multi-family: A project that is comprised of 100 units on two acres, 80,000 total square feet, with construction type V over a concrete podium.

Century | Urban was engaged by Baird + Driskell, hired by Association of Bay Area Governments (ABAG) Planning Collaborative to perform research on the development costs of certain residential prototypes in Santa Clara County. The estimates shown below are based on data and sources including but not limited to: similar projects Century | Urban has underwritten and/or priced; specific project economics Century | Urban has reviewed; direct conversations with developers and cost estimators; database research including CoStar, MLS, Redfin, and title databases; online research sources including municipality and project websites; market reports compiled by real estate sales and research organizations; and, Century | Urban’s general experience assessing residential project feasibility in the San Francisco Bay Area.

Land Costs
The price of land also varies across the county based on site conditions and location, but land costs in Santa Clara County are notably higher than costs in neighboring counties. Century Urban estimates the average land price in Santa Clara County for single-family homes (based on sales within the last three years) at $1,320,000.

Land costs are lower for multi-family developments, estimated at $600,000 for small developments and $6,000,000 for large developments, or $60,000 per unit. The data does not include properties with existing homes or infrastructure that were redeveloped as new single-family homes, and the data for some cities is limited.

As the data collected is not comprehensive, summaries and averages may be valuable for reaching overall conclusions about the range of land prices in the counties, but they may or may not be representative of a given city’s average or median land price or the land price for a given parcel. The information should therefore be reviewed noting the limited number of data points for certain cities, including Los Gatos where only 15 data points were available. Land prices vary substantially by location, topography, site conditions, shape of the parcel, neighboring uses, access, noise, and many other factors. In addition, completed sales are necessarily past transactions and may not represent the current state of the market and expected future land sale prices.

There are very few vacant parcels zoned for multi-family development, and such parcels demand premium prices because of the high demand to live in Los Gatos. Additionally, most parcels have existing improvements that increase acquisition costs. Countywide, the land costs for multi-family development sites cost approximately $60,000 per unit.
2 Century Urban, 2022. San Mateo and Santa Clara Counties Development Cost & San Mateo County Unit Mix Research. citiesassociation.org/documents/development-cost-data.

HCD Draft Revised Draft 2023-2031 Housing Element
C-62 Appendix C JanuaryNovemberSeptember March 20232024 Hard and Soft Costs
Soft costs for housing development include the cost of architectural, engineering, accounting, legal and other professional services, as well as the cost of obtaining permits and paying government-imposed fees. Carrying costs and the cost of construction financing can also be considered soft costs. Century Urban’s analysis finds that soft costs (such as impact fees and costs accumulated through permitting delays) are hard costs. Hard costs include the costs of labor and materials.

Hard costs are very high in Santa Clara County, and both the high cost of labor and the high cost of materials could be considered constraints on housing development. According to analysis by Century Urban, residential hard and soft costs do not vary significantly across Santa Clara County.

Hard and soft costs contribute significantly to the overall cost of developing new housing. Hard costs comprise over half of development costs for multi-family housing. Although hard costs are significant for single-family production as well, they comprise a lower percentage of overall costs because of the larger role of land costs in single-family construction. High hard costs are difficult for individual jurisdiction to mitigate.  Single-family detached ~2,660 square feet: $81 to $965 per square foot.  Single-family detached ~5,000 square feet: $714 to $1,174 per square foot.  Multi-family apartments/condominiums less than 10 units on one acre: $726,500 to $846,500 per unit.  Three- to four-story 100-unit multi-family apartment/condominiums with type V construction over a concrete podium parking: $672,500 to $792,500 per unit.

Availability of Financing
The residential real estate market is strong in the Town of Los Gatos. Local realtors and developers have noted that Los Gatos was affected by the home mortgage foreclosure crisis that plagued many communities in the last fifteen years. Adjustable-rate mortgages, jumbo loans (those above $417,000), and Government-insured Federal Housing Administration home purchase loans, in addition to all-cash offers, are common in Los Gatos. Adequate financing through local banks is available to the Los Gatos community.

The Housing Trust of Santa Clara County offer three low-interest, down payment or closing cost loan programs for income qualified buyers in Los Gatos. Participation in this program includes homebuyer education classes.

The County of Santa Clara Office of Affordable Housing administers three homebuyer assistance programs. The Home Investment Partnerships Program offers down payment assistance for first-time buyers. The Mortgage Credit Certificate Program reduces the federal income taxes of qualified borrowers purchasing qualified homes, thus acting like a mortgage subsidy. The Down payment Assistance Program for First-time Buyers offers a subsidy for borrowers meeting a maximum income limit and maximum purchase price limit.

The Home Mortgage Disclosure Act (HMDA) requires the reporting of data on residential loan applications, which provides insight into the availability of financing in the community. Table C-6 12 summarizes HMDA data for the San Jose, Sunnyvale, Santa Clara MSA. As shown in the table below, approximately 25 percent of all loan applications for the lowest income group are denied.

Table C-10 123 Home Purchase and Improvement Loans
Income Group Loan
Applications
Loans Approved (Originated) Loans Denied
# % # %
>50% of MSA AMI 9,757 4,518 46.3% 2,550 26.1%
50-79% of MSA AMI 19,780 12,673 64.1% 2,683 13.6%
80-99% of MSA AMI 8,535 5,775 67.7% 852 10.0%
100-119% of MSA AMI 28,507 20,122 70.6% 2,361 8.3%
≥120 of MSA AMI 87,715 59,930 68.3% 6,951 7.9%

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-63 TOTAL 154,294 103,018 66.8% 15,397 10.0%
Source: Home Mortgage Disclosure Act (HMDA), 2020
MSA – Metropolitan Statistical Area
AMI – Area Median Income
Environmental Constraints
The environmental setting affects the feasibility and cost of residential development. These areas contain environmental constraints on development, such as steep slopes, landslide hazards, fire hazards, or flood hazards, and therefore, much of the undeveloped land has been set aside as open space. The Town is adjacent to other built out communities and nestled against the Santa Cruz Mountains, limiting opportunities for expansion.

The following are environmental constraints and hazards that affect, in varying degrees, existing and future residential developments.

Urban and Wildland Fire Hazards
Wildfires are becoming an all too regular event in California, and both urban and wildland fires are a threat to the Town of Los Gatos. Wildfires that burn exclusively in uninhabited natural areas generally pose little risk to lives or property, although the smoke from such fires may cause respiratory problems for people nearby. Fires that occur along the wildland-urban interface (WUI) are much more of a hazard, as they can spread into urbanized areas.

Wildfire risk is dependent on several factors, including the amount and type of vegetation in the area, weather, and local topography. Factors such as narrow, winding roads and vegetation also slow response to fires, increasing the risk of spread.

Based on the increased potential for devasting wildfires in Santa Clara County and the Town of Los Gatos, CAL FIRE developed and adopted “Fire Hazard Severity Zone” maps. These maps highlight that most of the County is located within the “high” fire severity zone, with smaller portions of the County within the “moderate” and “very high” fire severity zones. More than half of the southern portion of the Town is in the Very High Fire Hazard Severity Zone, with most of the areas to the south in the High or Moderate zones. The Town must therefore strongly incorporate fire hazard mitigation into its land use decisions and requirements to protect residents and property. Potential impacts are mitigated by policies in the 2040 General Plan Hazards and Safety Element including the following:
 Require new development, including additions to existing structures, located in or adjacent to fire hazard areas to minimize hazards to life and property, by using fire preventive site design, access, fire-safe landscaping, building materials, and incorporating defensible space and other fire suppression techniques.  Minimize exposure to wildland and urban fire hazards through proactive code enforcement, public education programs, use of modern fire prevention measures, quick and safe access for emergency equipment and evacuation, and emergency management preparation.  Restrict development in areas with inadequate water flow or emergency access.  Monitor and remove excessive buildup of flammable vegetative materials on Town properties and along critical ingress/egress routes in the WUI.

Geological and Seismic Hazards
The San Francisco Bay Area is in one of the most active seismic regions in the United States. Los Gatos is near several active faults including the San Andreas, Hayward, and Calaveras Faults. Ground shaking is the primary risk in an earthquake and can set off a chain reaction of secondary landslides and liquefaction, or loss of soil strength. The region around the Lexington Reservoir also has higher risk of ground shaking should an earthquake occur. Implementation of applicable building codes and geotechnical investigations will minimize potential loss of life and damage to property from primary and secondary seismic hazards and siting essential structures and services outside high-risk areas will enable faster emergency response after an earthquake.

Seismic activity within or near the Santa Clara County region has historically caused significant damage to buildings and infrastructure in the Town of Los Gatos due to ground shaking and landslides. Five earthquakes have affected Los Gatos in the 20th century, with the 1906 San Francisco and 1989 Loma Prieta earthquakes having the highest magnitude. Potential impacts are mitigated by policies in the Draft 2040 General Plan Hazards and Safety including the following:

HCD Draft Revised Draft 2023-2031 Housing Element
C-64 Appendix C JanuaryNovemberSeptember March 20232024  Require new development to be sited away from high risk geologic and seismic hazard zones or, if located in a high-risk zone, incorporate construction techniques or specialized technologies to reduce risk.

Restrict new development and redevelopment based on the levels of risk and potential severity of geologic hazards.
 Require geotechnical reports analyzing seismic hazards, grading, and construction methods.  Require that a licensed geologic/geotechnical engineer complete the Town Geologic Hazards Checklist for all new proposed development to demonstrate that potential hazards have been identified and that proposed structures, including grading cuts and fills, will be designed to resist potential earthquake effects.  Implement the Hillside Development Standards and Guidelines.

Flood and Inundation Hazards
Flooding can threaten life, safety, and property and can occur in a number of ways. The level in a body of water, such as a lake or creek, can rise higher than the water body’s banks, causing it to overflow into nearby areas.

Heavy precipitation can overwhelm the ability of soil to absorb water or storm drains to carry it away, causing water to build up on the surface. Localized flooding may also occur as a result of infrastructure failure, such as a burst water tank or pipe. In Los Gatos, the floods that are of most concern are from heavy rainfall causing local flooding or flash floods. Flooding puts various populations in Town at risk. A 500-year flood could affect upwards of 28,000 people and cause $10 billion of structural damage.

Beyond localized flooding, Los Gatos faces a flood threat from dam inundation. While less common, dam inundation is recognized in both the Town Emergency Operations Plan and Santa Clara County OAHMP. The Lexington Reservoir as contained by the James J. Lenihan Dam is the largest concern for dam inundation.

Lexington Reservoir is the third largest reservoir in Santa Clara County storing 19,044 acre-feet of water. The potential inundation zone in the event of failure is significant, with the potential to affect over 3,000 people and damage over 1,000 structures. As future climate change-related impacts increase, localized flooding will become more common due to more extreme storms increasing the potential for more frequent and severe riverine flooding. Potential impacts are mitigated by policies in the Draft 2040 General Plan Hazards and Safety including the following:
 Require site planning and building design to mitigate identified flood and inundation hazards.  Require that new development and substantial improvements to existing structures meet Federal and State standards when located within FEMA Flood Insurance Rate Maps (FIRMs) designated 100-year flood zones, as designated by current FEMA mapping.
 Cooperate with the Santa Clara Valley Water District to develop and maintain additional stormwater retention facilities in areas where they are needed or where the design capacity of existing retention facilities cannot be restored.

Hazards and Hazardous Materials
The use, manufacture, production, transportation, storage, treatment, disposal, and clean-up of hazardous materials and hazardous wastes present a potential threat to the health and safety of those who are using the materials and those who could be affected by improper or accidental release or disposal. Hazardous materials include all toxic, flammable, combustible, corrosive, poisonous, and radioactive substances that possess the potential to bring harm to the public or the environment. The Town maintains a comprehensive list of Hazardous Waste and Substance sites where hazardous materials are present and cleanup activities are or may be necessary. Potential impacts are mitigated by policies in the 2040 General Plan Hazards and Safety Element.

Noise and Air Quality
Noise and air quality impacts associated with Highways 17 and 85, other high-volume arterial roadways, and the Union Pacific Railroad line parallel to and south of Highway 85 could potentially impact housing. The California Building Code and the Noise Element of the Los Gatos General Plan contain policies and standards that mitigate noise impacts, and the regulations of the Bay Area Air Quality Management District require careful study and mitigation of health risks from poor air quality. Potential impacts are mitigated by policies in the Draft 2040 General Plan Environment and Sustainability Element.

Appendix C. Governmental and Non-Governmental Constraints JanuaryNovember September March 20232024 Appendix C C-65 Environmental constraints to housing development are mitigated where public health, safety, and welfare can be protected.

Sites Inventory Analysis D

APPENDIX

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-1
D.1 Vacant and Available Sites
The Plan Bay Area 2050 Final Blueprint1 forecasts that the nine-county Bay Area will add 1.4 million new households between 2015 and 2050. For the eight-year time frame covered by this Housing Element Update, the Department of Housing and Community Development (HCD) has identified the region’s housing need as 441,176 units. The total number of housing units assigned by HCD is separated into four income categories that cover housing types for all income levels, from very low-income households to market rate housing. This calculation, known as the Regional Housing Needs Allocation (RHNA), is based on population projections produced by the California Department of Finance as well as adjustments that incorporate the region’s existing housing need. The adjustments result from recent legislation requiring HCD to apply additional adjustment factors to the baseline growth projection from California Department of Finance, in order for the regions to get closer to healthy housing markets. The adjustments focus on the region’s vacancy rate, level of overcrowding, and the share of cost burdened households and seek to bring the region more in line with comparable areas. The new laws governing the methodology for how HCD calculates the RHNA resulted in a significantly higher number of housing units for which the Bay Area must plan compared to previous cycles.

D.2 Regional Housing Needs Allocation
In December 2021, ABAG adopted a Final Regional Housing Needs Allocation (RHNA) Methodology. For Los Gatos, the RHNA required to be planned for the 6th cycle Housing Element Update is 1,993 units, an increase of 322 percent from the last cycle.

RHNA Summary
Los Gatos’ share of the regional housing need for the eight-year period from 2023 to 2031 is 1,993 units, which is a 322 percent increase over the 619 units required by the 2015 to 2023 RHNA. The housing need is divided into the four income categories of housing affordability. Table D-1 shows Los Gatos’ RHNA for the planning period 2023 through 2031 in comparison to the RHNA distributions for Santa Clara County and the Bay Area region.

With an update required every eight years by the State of California, this Housing Element covers a planning period from January 31, 2023, to January 31, 2031 (also referred to as the “6th cycle”).

Table D-1 Los Gatos’ Regional Housing Needs Allocation: 2023–2031 Income Group
Los
Gatos
Units
Percent
Santa
Clara
County
Units
Percent
Bay
Area
Units
Percent
Very Low Income (<50% of AMI) 537 26.9% 32,316 24.9% 114,442 25.9% Low Income (50%-80% of AMI) 310 15.6% 18,607 14.4% 65,892 14.9% Moderate Income (80%-120% of AMI) 320 16.1% 21,926 16.9% 72,712 16.5% Above Moderate Income (>120% of AMI) 826 41.4% 56,728 43.8% 188,130 42.6% Total 1,993 100.0% 129,577 100.0% 441,176 100.0%
Source: ABAG 2021
1 Plan Bay Area 2050 is a long-range plan charting the course for the future of the nine-county San Francisco Bay Area. It covers four key issues: the economy, the environment, housing and transportation

HCD Draft Revised Draft 2023-2031 Housing Element
D-2 Appendix D March SeptemberNovemberJanuary 20242023
RHNA Credits Summary
The RHNA planning period for the ABAG region started on June 30, 2022. Housing units that were finaled, permitted, or approved after this date, or were under construction as of June 30, 2022, can be credited toward the RHNA.

A summary of the entitled/completed projects since June 30, 2022, permitted and finaled units, pipeline projects, and projected ADU’,s and SB 9 development, is provided at the end of this appendix. The Town’s RHNA requirements are included below in Table D-2 and RHNA credits total to 737 416 units, with a remaining RHNA of 1,2561,577 units. The Town must identify adequate sites to accommodate the remaining RHNA.

Table D-2 RHNA Credits and Sites Strategies
RHNA Credit
Affordability Credit
Very LowIncome LowIncome ModerateIncome
AboveModerate
Income
Total
Entitled/Permitted/Under Construction/Finaled
(June 30, 2022, to January 31, 2023)
- Single-Family Units and Housing Projects 490 0 20 1762 2272 - ADUs 0 3 11 9 23
Pipeline Projects 0 1 0 190 191
Projected ADUs (1/1/2023-1/31/2031) 60 60 60 20 200
SB 9 Units 0 0 0 96 96
Total 10960 64 7371 491221 737416
RHNA 537 310 320 826 1,993
Remaining RHNA 428477 246 247249 335605 1,2561,577
Housing Element Overlay Zone (HEOZ) Sites 634 357 340 640624 1,9711,955 - Owner Interest/Conceptual Development Plans 480 283 264 320 304 1,3471,331 - Additional Sites 154 74 76 320 624
Surplus above Remaining RHNA 206157 111 9391 30519 715378 % Surplus 4833% 45% 3837% 913% 5724%
Source: Town of Los Gatos Community Development Department.

D.3 Sites Inventory
The purpose of the sites inventory is to identify and analyze specific sites that are available and suitable for residential development during the planning period between 2023-2031 in order to accommodate Los Gatos’ assigned overall 1,993 RHNA housing units, specifically the 1,2561,577 remaining units after taking into account units that can be credited against the RHNA. The Town does not build the housing but rather creates the implementation programs and policies to plan for where the housing can be located and how many units could be built on potential sites.

In 2017, Senate Bill (SB) 166 was signed into law and included new “no net loss” provisions that require communities to provide an ongoing, adequate supply of land resources for housing development during the entirety of the housing element update planning period. These provisions mean communities face risks of noncompliance should a housing site be developed with non-residential uses, lower residential densities, or residential uses at affordability levels higher than anticipated by the Housing Element. To avoid noncompliance, HCD advises communities to “buffer” their assigned RHNA numbers. The Sites Inventory includes 50 4847 sites in order to have enough capacity for the RHNA and recommended buffer of at least 15 percent. These sites, calculated at their net, minimum density, in addition to Accessory Dwelling Unit (ADU) Projections, Senate Bill (SB) 9 Projections, and Pipeline Projects, and RHNA credits for housing units that were finaled, permitted, or

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-3
approved after this date, or were under construction as of June 30, 2022, have a total, net capacity of 2,3712,708 2,494 units (1,993 units plus a 25 5724 percent buffersurplus).

D.4 Appropriate Density/Default Density
As a jurisdiction within a metropolitan statistical area of over 2 million, the Town’s "default" density that can be assumed to accommodate lower income households is 30 dwelling units per acre (du/ac).2 The following land use designations will allow for at least 30 du/ac within the Town for those sites within the proposed Housing Element Overlay Zone (HEOZ):
• • High Density Residential: 30-40 du/ac
• • Mixed Use Commercial: 30-40 du/ac
• • North Forty Specific Plan: 30-40 du/ac
Table D-3 illustrates the proposed density, height, and FAR for the various districts within the HEOZ to facilitate additional housing. These changes to development regulations will significantly increase the viability of redeveloping existing uses.
2 https://www.hcd.ca.gov/community-development/housing-element/housing-elementmemos/docs/default_2010census_update.pdf

HCD Draft Revised 2023-2031 Housing Element
D-4 Appendix D March SeptemberNovember January 20232024 Table D-3 Comparison of Development Regulations for the 2020 General Plan and Proposed HEOZ Density Range (du/ac) Maximum Height (feet) Lot Coverage (%) Floor Area Ratio Land Use Designations 2020 General
Plan HEOZ 2020 General Plan HEOZ 2020 General Plan HEOZ 2020 General Plan HEOZ Low Density Residential 0 – 5 0 – 5 30* 30 40%* Up to 50% Pursuant to
calculation in
Section

29.40.075 of
Town Code*
Pursuant to
calculation in
Section 29.40.075
of Town Code**
Medium Density
Residential 5 – 12
14 – 22 or 5 –
12 if in
VHFHS zone
30 or 35* 35 40%* Up to 75%
Pursuant to
calculation in
Section

29.40.075 of
Town Code or
none*
Pursuant to
calculation in
Section 29.40.075
of Town Code**
High Density Residential 12 – 20 30 – 40 35* 45 40%* up to 75% None* None** Mixed-Use Commercial 10 – 20 30 – 40 35 45 Up to 50% Up to 50%** None* Up to 3.0 Neighborhood
Commercial 10 – 20 10 – 20 35 35 Up to 50% Up to 50%** None* Up to 1.0 Central Business District 10 – 20 20 – 30 45 45 None* None** Up to 0.6 Up to 2.0 North Forty Specific Plan 20 30 – 40 As defined in
Specific Plan
As defined in
Specific Plan
As defined in
Specific Plan
As defined in
Specific Plan
As defined in
Specific Plan
As defined in
Specific Plan
* The 2020 General Plan is silent on this development standard. The applicable regulation under the Zoning Ordinance has been provided for context. ** The 2023-2031 Draft Revised Housing Element is silent on this development standard and so development would be evaluated based on the underlying designation in the 2020 General Plan Land Use Element.

Appendix D. Sites Inventory Analysis
D-5 Appendix D March SeptemberNovember January 20232024 Non-Vacant Capacity
The Town is relying on non-vacant sites to accommodate more than 50 percent of the RHNA for lower-income households. Because non-vacant sites comprise more than half of the Town’s Sites Inventory, Government Code Section 65583.2(g)(2) requires that the Town analyze the extent to which existing uses may constitute an impediment to additional residential development, past experience in converting existing uses to higher density residential development, market trends and conditions, and regulatory or other incentives to encourage redevelopment. The Town will need to make findings based on substantial evidence that the existing use is not an impediment and will likely discontinue during the planning period. This section includes a description of the suitability of non-vacant sites, policies that will contribute to the development of nonvacant sites, and an overview of recent affordable residential development throughout the region.

Development Trends
The Town has experienced a high demand for residential projects given recent legislation aimed at creating housing in a more streamlined process. For example, Site I-1, located at 401-409 Alberto Way received Planning entitlement approval for an office building; however, based on the discussions regarding the Housing Element and recent State housing legislation, the property owner has chosen to pursue a multi-family housing project. In addition to the North Forty Phase I project, other examples of housing projects within the fifth cycle Housing Element that occurred in commercial zones (which allow for 100 percent nonresidential uses) include:

1. 375 Knowles Avenue: Approval of a rezone from Office (O) to Office: Planned Development and a General Plan amendment from Public to Office Professional to allow for the construction of 33 singlefamily detached homes; and

2. 258 Union Avenue: Approval of a mixed-use building with three attached housing units and six detached single-family units on property zoned Neighborhood Commercial (C-1).

Implementation Programs BF and BG of the 6th cycle Housing Element Update contain land use intensifications to encourage the development of housing by allowing for greater densities, height, lot coverage, and floor area. It is expected that residential uses will redevelop with a greater frequency than the slower pace of the previous Housing Element cycles. Over the past three years, there were no development applications in Mixed Use Commercial and North Forty Specific Plan areas. The only active development project in these mixed-use areas is a residential-only project with construction underway (253 units have been finaled). Implementation programs in the 6th cycle Housing Element Update contain land use intensifications to encourage the development of housing by allowing for greater densities, height, lot coverage, and floor area. However, the Land Use Element is in referendum, the outcome of which is anticipated by fall 2024. Since September 18, 2023, five projects have submitted SB 330 preliminary applications on 14849 Los Gatos Boulevard (132 units), 14859 Los Gatos Boulevard (mixed use development with 437 units), 50 Los Gatos-Saratoga Road (158 units), 101 S. Santa Cruz Avenue (mixed-use development with 72 units), and 220 Belgatos Road (30 units). One formal SB 330 application for 405 Alberto Way (52 units) has been submitted to the Town. Given the interest in residential and mixed-use developments, it is expected that residential uses will redevelop with a greater frequency than the slower pace of the previous Housing Element cycles. There have been no 100 percent nonresidential development applications in the last few years.

Table D-4 on the following page summarizes recent residential development in the Town and nearby cities. It includes three pipeline projects listed in Table D-2 and examples of denser residential redevelopment on singlefamily and multi-family uses, industrial uses, and commercial uses in the cities of Campbell and San Jose. The City of San Jose and City of Campbell examples are nearby to the Town and are included as examples of the types of developmentexisting uses that could be projectedexpected to be redeveloped in the Town based on the proposed Housing Element Overlay Zone (HEOZ). However, most of these projects have completed construction already and therefore, data on the site conditions (such as year built, building square footage, and improvement/land values, etc.) prior to redevelopment have already been deleted by the County Assessor’s Office, and replaced with data for the new structures. Therefore, Table D-4 is intended to demonstrate the general trend of recycling in the Town and neighboring communities. Specific conditions of existing uses in Los Gatos that are conducive to redevelopment are discussed later under the subsection “Characteristics of Existing Uses” based on the characteristics of properties with SB 330 applications, as well as properties with expressed owner interests.

HCD Draft Revised Draft 2023-2031 Housing Element
D-6 Appendix D March SeptemberNovemberJanuary 20242023
Table D-4 Table D-2 Development Trends in Los Gatos and Nearby Cities * Mixed-use development consisting of 320 residential units, including 49 very low-income senior unit and one affordable caretakersmanger’ unit. 30 units have not received building permit approval yet.
** Applicant has requested approval for a Zone Change application from R-1:10 (Single-Family Residential with a minimum lot size of 10,000 square feet) to CH (Restricted Commercial Highway) for consistency with the General Plan land use designation of Mixed-Use Commercial Property Owner Interest Form
As part of the Housing Element update outreach, the Town created a Property Owner Interest form that was made available on the Housing Element Update website to hear from property owners who may be interested in future housing development within the sixth cycle Housing Element update. The form contained 19 questions for the property owner to fill out, based on the criteria contained in HCD’s Housing Element Sites Inventory Guidebook. Property owners were asked to identify the parcel size, present zoning, present use, existing site Address Project
Type Prior Use Land Use Zoning Proposed Units
Proposed
Density
Max
Density
465 N. Santa Cruz
Avenue
Pipeline
Project
Commercial Neighborhood
Commercial
C-1 1 6 20
North Forty Phase I
Pipeline
Project
Completed
Project
Single-Family
Residential,
Commercial,
and
Agriculture
North Forty
Specific Plan
North
Forty
Specific
Plan
30* 20 20
14926 Los Gatos
Boulevard
Pipeline
Project Vacant Mixed-Use Commercial R-1:10** 5 10 20
16179 E Mozart
Avenue
Nearby
Project in
Campbell
Single‐Family
Residential
Low Density
Residential
P‐D 30 6 7.93
280 Dillon Nearby
Campbell
Development
Industrial Transit Oriented
Mixed Use
P‐D 118 27 22.64
300 Railway
Avenue
Nearby
Project in
Campbell
Industrial,
Vacant,
Single‐Family
Residential
Commercial‐
Corridor Mixed
Use
P‐D 157 27 33.7
540 E Campbell
Avenue
Nearby
Project in
Campbell
Industrial,
Single‐Family
Residential
CC/Central
Commercial
C‐P‐D 59 27 36.24
1725 S Bascom
Avenue
Nearby
Project in
Campbell
Commercial RCPO‐
Residential/Co
mmercial/
Professional
Office
P‐D 168 27 36.45
14200 Union
Avenue
Nearby
Project in
San Jose
Commercial Neighborhood/
Community
Commercial
CP (PD) 558 51 50
1410 S Bascom
Avenue
Nearby
Project in
San Jose
Commercial Neighborhood/
Community
Commercial
CP (PD) 590 131 50
1312 El Paseo De
Saratoga
Nearby
Project in
San Jose
Commercial Regional
Commercial
CP (PD) 930 87 N/A

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-7
conditions, current lot configuration, availability of infrastructure, and the interest in the type of housing for the site.

Parcels for which a Property Owner Interest Form was submitted to the Town are noted in the site details below.

There are 2827 parcels with property owner interest. Of these parcels, four are reuse sites identified in prior housing elements (see Implementation Program AS). During the outreach for the 6th cycle Housing Element, the owners of 2827 parcels expressed interest in developing housing on the sites that they own. Many property owners own more than one parcel that is contiguous to the other, and while each parcel may have its own APN, the parcels would likely be developed as a single, merged parcel. Of the sites on the inventory with owner interest in redevelopment, fourthree include projects that have submitted pre-applications under SB 330.

Characteristics of Existing Uses
While the Town had not received applications for mixed use and multi-family development in the last few years, the characteristics of properties with SB 330 applications, as well as properties with expressed owner interests in redevelopment can be used to help identify similar properties with future redevelopment potential. These properties exhibit the following general characteristics:
 Improvement Value-to-Land Ratio (IVLR): As shown in Table D-5, the average IVLR of recent SB 330 properties and those with owner interest for redevelopment is 0.56, with the highest at 3.59. Typically, an IVLR of 1.00 of less is an indication of potential for redevelopment, as the building structures are worth less than the land. Most properties included in this sites inventory have very low improvement values compared to the land values (most are less than 1.0, with only a few hovering above 1.0). Among these properties that are non-vacant, the following general characteristics can be summarized:

There are some exceptions. Commercial buildings often have high IVLR. For example, site C-8 is a dealership with a 20,000 square-foot showroom and other service areas. However, overall, the site has low utilization (FAR of only 0.24) and the structures are older. Sites F-1 and F-2 are commercial buildings that have higher than 1.0 IVLR with low site utilization (at 0.34 and 0.44 respectively).  Floor Area Ratio (FAR): These sites have very low utilization of land with the average FAR being only

0.15, compared to the allowable between 1.0 and 3.0 for the proposed HEOZ, depending on base zoning.

This analysis uses a threshold of less than 50 percent of the allowable FAR, if an FAR is set for the zone.

If an FAR is not set for the zone, then 0.20 is used based on the average and range demonstrated by properties with owner interests.
 Age of Structures: Most buildings are at least 30 years old – the age where significant rehabilitation and system upgrades may be needed to modernize the buildings. This analysis uses a threshold of over 40 years.
 Number of Stories: Most properties with owner interest for redevelopment are just single-story buildings, except for site C-8 where there is 20,000 square-foot showroom and service areas. Existing buildings are below the 30-35 feet height allowable under the base zoning, and up to 45 feet for the proposed HEOZ.

This analysis uses a threshold of building height less than the potential building height.

In addition to having expressed interest from property owners to redevelop the sites within the next eight years, each of these sites also meet at least three of the four criteria described above. Table D-6 illustrates how the selected parcels meet these criteria.

HCD Draft Revised Draft 2023-2031 Housing Element
D-8 Appendix D March SeptemberNovemberJanuary 20242023
Table D-5 Characteristics of Existing Uses on SB 330 Properties and Properties with Owner Interests Site # APNs SB
330 Existing Uses
Average by Site
IVLR FAR Age of
Structures
# of
Stories
A-2 529-01-022 Yes Post Office 0.79 0.34 56.0 1.00
A-3 529-04-083 No Restaurant 1.14 0.28 53.0 1.00
B-1 529-24-001, 529-24-003, 529-24-
032 Yes Los Gatos Lodge 0.07 0.06 50.7 1.33
C-1 424-17-036 No Ace Hardware 0.25 0.24 63.0 1.00
C-2 424-19-049, 424-19-048, 424-19-
069 No Office, personal services 0.34 0.22 55.3 1.33
C-3 424-19-067 No Office, personal services 0.96 0.32 42.0 1.00 C-4 529-15-059 No Retail commercial 1.04 0.33 60.0 1.00 C-5 529-16-069 No Retail and auto related
services 0.17 0.26 63.0 1.00
C-6 532-07-085, 532-07-086 No Retail commercial,
personal services 0.00 0.14 58.0 0.50
C-7 529-16-040 No Car dealership 0.35 0.17 64.0 0.00
C-8 529-16-041 No Car dealership 3.59 0.24 50.0 2.00
C-9 424-14-034, 424-14-035 No Car dealership 0.51 0.07 56.0 0.50 D-1
424-07-094, 424-07-095, 424-07-
053, 424-07-009, 424-07-081,
424-07-115, 424-07-116
Yes Single-family homes and
agricultural uses 0.55 0.03 49.9 0.83
D-6 424-07-064 Yes Single-family home 1.16 0.03 103.0 1.00 G-1 527-49-048, 527-49-049 No Gas station and retail 1.07 0.13 58.5 1.00 H-1 527-32-028 No Gas station 0.26 0.05 53.0 1.00
I-1 529-23-018 Yes Office buildings (already
demolished) 0.00 0.38 57.0 3.00
Range 0.07-3.59 0.03-0.38 42.0-103.0 0.0-3.0
Average (nonvacant parcels) 0.64 0.15 55.5 1.08

HCD Draft Revised Draft 2023-2031 Housing Element
D-9 Appendix D March SeptemberNovember January 20232024 Table D-6 Sites Inventory Selection Criteria
Site # APN Proposed Zoning Existing Uses Vacant
Owner
Interest SB 330
Existing
FAR
Max
FAR
% Max
FAR
Parcel
IVLR < 1.0
Site
IVLR
<1.0 Age Floors
A-2 52901022 C-2:HEOZ Commercial Y 0.34 2.00 17% 0.79 0.79 56 1 A-3 52904083 C-2:HEOZ Commercial Y 0.28 2.00 14% 1.14 1.14 53 1 B-1 52924001 CH:PD:HEOZ Hotel/motel Y Y 0.02 3.00 1% 0.17 0.06 87 2 B-1 52924032 CH:PD:HEOZ Hotel/motel Y Y 0.15 3.00 5% 0.04 0.06 65 2 B-1 52924003 CH:PD:HEOZ Hotel/motel Y Y 0.00 3.00 0% 0.00 0.06 0 0 C-1 42417036 C-1:HEOZ Commercial Y 0.24 1.00 24% 0.25 0.25 63 1 C-2 42419048 CH:HEOZ Commercial Y 0.11 1.00 11% 0.10 0.39 61 1 C-2 42419049 CH:HEOZ Commercial Y 0.27 3.00 9% 0.35 0.39 62 1 C-2 42419069 CH:HEOZ Commercial Y 0.27 3.00 9% 0.58 0.39 43 2 C-3 42419067 CH:HEOZ Commercial Y 0.32 3.00 11% 0.96 0.96 42 1 C-4 52915059 CH:HEOZ Commercial Y 0.33 3.00 11% 1.04 1.04 60 1 C-5 52916069 CH:HEOZ Commercial N 0.26 3.00 9% 0.17 0.17 63 1 C-6 53207085 C-1:HEOZ Commercial Y 0.28 1.00 28% 0.00 0.11 58 1 C-6 53207086 C-1:HEOZ Vacant Y Y 0.00 1.00 0% 0.00 0.11 0 0 C-7 52916040 CH:HEOZ Commercial Y 0.17 3.00 6% 0.35 0.35 64 1 C-8 52916041 CH:HEOZ Commercial Y 0.24 3.00 8% 3.59 3.59 50 2 C-9 42414034 CH:HEOZ Commercial Y 0.00 3.00 0% 0.00 0.88 0 0 C-9 42414035 CH:HEOZ Commercial Y 0.13 3.00 4% 1.02 0.88 56 1 D-1 42407009 North Forty Specific
Plan:HEOZ Residential Y Y 0.07 N/A N/A 0.27 0.32 82 1
D-1 42407053 North Forty Specific
Plan:HEOZ Residential Y Y 0.10 N/A N/A 1.22 0.32 62 1
D-1 42407081 North Forty Specific
Plan:HEOZ Residential Y Y 0.02 N/A N/A 1.75 0.32 51 2
D-1 42407094 North Forty Specific
Plan:HEOZ Residential Y Y 0.03 N/A N/A 0.24 0.32 68 1
D-1 42407095 North Forty Specific
Plan:HEOZ Vacant Y Y Y 0.00 N/A N/A 0.00 0.32 0 0
D-1 42407115 North Forty Specific
Plan:HEOZ Residential Y Y 0.01 N/A N/A 0.35 0.32 86 1

HCD Draft Revised Draft 2023-2031 Housing Element
D-10 Appendix D March SeptemberNovemberJanuary 20242023 Site # APN Proposed Zoning Existing Uses Vacant
Owner
Interest SB 330
Existing
FAR
Max
FAR
% Max
FAR
Parcel
IVLR < 1.0
Site
IVLR
<1.0 Age Floors
D-1 42407116 North Forty Specific
Plan:HEOZ Vacant Y Y Y 0.00 N/A N/A 0.00 0.32 0 0
D-2 42406115 North Forty Specific
Plan:HEOZ Residential N 0.03 N/A N/A 0.21 0.21 71 1
D-2 42406116 North Forty Specific
Plan:HEOZ Vacant Y N 0.00 N/A N/A 0.00 0.21 0 0
D-3 42407010 North Forty Specific
Plan:HEOZ Residential N 0.07 N/A N/A 1.34 1.34 77 1
D-4 42407052 North Forty Specific
Plan:HEOZ Residential N 0.24 N/A N/A 2.25 2.25 83 2
D-5 42407054 North Forty Specific
Plan:HEOZ Residential N 0.10 N/A N/A 0.59 0.19 81 1
D-5 42407063 North Forty Specific
Plan:HEOZ Residential N 0.04 N/A N/A 0.15 0.19 74 1
D-6 42407064 North Forty Specific
Plan:HEOZ Residential N Y 0.03 N/A N/A 1.16 1.16 103 1
D-7 42407065 North Forty Specific
Plan:HEOZ Residential N 0.07 N/A N/A 0.00 0.00 91 1
E-1 42408017 R-M:5-12:HEOZ Residential N 0.04 N/A N/A 0.15 0.56 93 2 E-1 42408021 R-M:5-12:HEOZ Residential N 0.01 N/A N/A 0.20 0.56 42 1 E-1 42408029 R-1:8:HEOZ Vacant Y N 0.00 N/A N/A 0.00 0.56 0 0 E-1 42408057 R-1:8:HEOZ Vacant Y N 0.00 N/A N/A 0.00 0.56 0 0 E-1 42408058 R-1:8:HEOZ Residential N 0.07 N/A N/A 13.80 0.56 43 1 E-1 42408059 R-1:8:HEOZ Residential N 0.00 N/A N/A 0.00 0.56 0 0 E-1 42408060 R-1:8:HEOZ Vacant Y N 0.00 N/A N/A 0.00 0.56 0 0 E-2 42408074 R-1:8:HEOZ Vacant Y N 0.00 N/A N/A 0.00 0.00 0 0 E-3 CalTrans R-M:HEOZ Vacant Y N 0.00 N/A N/A 0.00 0.00 0 0 F-1 42432077 CM: HEOZ Commercial N 0.34 1.00 34% 2.33 2.33 41 1 F-2 42432076 CM:HEOZ Commercial N 0.44 1.00 44% 2.33 2.33 42 2 G-1 52749048 C-1:HEOZ Commercial Y 0.07 1.00 7% 0.50 0.78 59 1 G-1 52749049 C-1:HEOZ Commercial Y 0.19 1.00 19% 1.63 0.78 58 1 H-1 52732028 C-1:HEOZ Commercial Y 0.05 1.00 5% 0.26 0.26 53 1 I-1 52923018 CH:HEOZ Vacant Y Y Y 0.00 3.00 0% 0.00 0.00 0 0

HCD Draft Revised 2023-2031 Housing Element
D-11 Appendix D March SeptemberNovember January 20232024 Site Capacity
On sites with Property Owner Interest and/or conceptual development plans submitted, 1,3311,347 units are projected: 480 very low income; 283 low income; 264 moderate income; and 304320 above moderate-income units. Additional vacant and underutilized sites add another 624 potential units: 154 very low income; 74 low income; 76 moderate income; and 320 above moderate income.

Small Parcels
While the Sites Inventory in this Housing Element includes a few small “parcels”, no small “sites” less than 0.5 acre are used to accommodate lower income RHNA units. A site is typically comprised of a few parcels. In this Sites Inventory, only parcels that are already consolidated or under common ownership, totaling more than 0.5 acre, are used to meet the lower income RHNA. The majority of property owners who have expressed interest in redevelopment have either communicated their interest through submittal of a Property Owner Interest Form and/or a SB 330 preliminary and/or formal application, in which a future development would comprise of merging multiple parcels into a single parcel. Sites that include small parcels are:
 B-1: 3 parcels (7.04 acres; 1.49 acres; and 0.28 acre) under common ownership (Los Gatos Lodge), and with expressed interest from property owner to redevelop the site, including the merging of three parcels into a single parcel. Access to the site is provided through a single entrance fronting along Los GatosSaratoga Road which serves all three parcels and that all parcels are under common ownership;  C-2: 3 parcels (0.34 acres; 1.20 acres; and 1.34 acres) under common ownership and with expressed interest from property owner to redevelop the site, including the merging of three parcels into a single parcel. Analysis of the parcels has shown that there is potential for shared access given the parcels location with frontage along Los Gatos Boulevard, partial frontage along Garden Lane, and that all parcels are under common ownership;
 D-1: 7 parcels (2.90 acres; 0.78 acres; 0.44 acres; 0.44 acres; 3.74 acres; 6.07 acres; and 1.02 acres) and with expressed interest from property owner to redevelop the site, including the merging of seven parcels into a single parcel. Analysis of the parcels has shown that there is potential for shared access given the parcels location with frontage along Los Gatos Boulevard, the previous development pattern of the North Forty Phase I, and that all parcels are under common ownership;  D-2: 2 parcels (1.17 acres and 0.11 acre) under common ownership, including the merging of two parcels into a single parcel. Analysis of the parcels has shown that there is potential for shared access given the parcels location along Burton Road, the smaller parcel (0.11 acre) is located at a dead-end road and would be dependent on a lot merger to provide for sufficient development area, and that all parcels are under common ownership. While the Town did not receive a property owner interest form, the site is located within Phase II of the North Forty Specific Plan Area where recent significant housing development is underway and such development often involves the merging of parcels;  D-5: 2 parcels (0.56 acre and 0.26 acre) under common ownership. Analysis of the parcels has shown that there is potential for shared access given the parcels location along Burton Road, partial frontage along Los Gatos Boulevard, and that all parcels are under common ownership; While the Town did not receive a property owner interest form, the site is located within Phase II of the North Forty Specific Plan Area where recent significant housing development is underway and such development often involves the merging of parcels;
No other small parcels are used to meet the Town’s lower income RHNA.

The Town’s efforts to facilitate lot consolidation will be completed through Implementation Program K and will include the following actions:
 Opportunity sites outreach: The Town will conduct outreach to property owners in these areas to identify meaningful incentives to facilitate lot consolidation, lot assemblage and redevelopment in mixed-use and commercial areas.
 Development Incentives: The Town will consider the development of a Lot Consolidation Ordinance to include specific incentives such as: flexible development standards such as reduced setbacks, increased lot coverage, increased heights, reduced parking, and reduced fees.  Technical assistance: The Town will work with property owners that are receptive to lot consolidation/lot assemblage to assist them in facilitating the parcel merge process in a streamlined and timely manner.

HCD Draft Revised Draft 2023-2031 Housing Element
D-12 Appendix D March SeptemberNovemberJanuary 20242023 Residential Uses
Of the 4748 parcels selected, there are nine parcels that are designated to only allow residential uses:
 Site E-1: 14800 Oka Road, APN 424-08-029, APN 424-08-059, APN 424-08-060, APN 424-08-058, APN 424- 08-017, APN 424-08-021, APN 424-08-074, and the Caltrans right-of-way adjacent to 14865 Oka Road.

The remaining sites are designated to allow for commercial and mixed-use opportunities. Given the interest that the Town has received as part of the sixth cycle Housing Element Update, there is a strong likelihood of development on these other sites will include an integration of residential units. This is demonstrated by the recently developed and underway projects in the Town and residential and mixed-use projects underway in neighboring jurisdictions.

Commercial Sites
There are 3839 sites in commercially zoned areas, including the sites within the North Forty Specific Plan and 16 reuse sites identified in prior housing elements. Under Implementation Program BH, reuse sites can be developed under ministerial review if they are developed with 20 percent or more of the units set aside for lowerincome households.

Many of these sites are developed with older, underutilized commercial and office uses, which have low floor area ratios (FAR). Many of these uses are on parcels that can be redeveloped with residential uses in a mixed-use format that would retain commercial or office use.

Examples of developer interest for construction of housing units on commercial sites in the Town include:
 401-409 Alberto Way;
 50 Los Gatos-Saratoga Road;
 16203 Los Gatos Boulevard;
 101 S. Santa Cruz Avenue; and
 15860 Winchester Boulevard.

Two of these examples are properties where a planning entitlement for 100 percent commercial were approved within the last eight years, but with the changing State and local regulations the property owners have abandoned those approvals and are now instead proposing new development projects that are entirely or predominantly made up of residential units. As a result, the likelihood that the other commercial sites would redevelop without some residential component is clearly low.

Potential Findings (Non-Vacant Sites)
The Town can make the following findings to determine that the existing use on sites with underutilized commercial is likely to be discontinued:
 The property owners are interested in developing at least a portion of the site with housing;  The value of these parcels to the property owner is mostly in the land, and residential uses will increase the value without substantially affecting improvement value;  The buildings that will be demolished for new commercial and/or mixed-use will all be over 430 years old at time of 2023-2031 Housing Element adoption;
 The land use designations for these sites as part of Implementation Program AQ of the HEOZ will allow for higher densities to incentivize the redevelopment of the sites; and/or  Adding a potential new use increases the value of the property.

Overview of Selected Sites
This section provides information on the current list of potential sites that show how the Town will accommodate the State’s required minimum of 1,993 housing units. Please note that the site numbers listed here are added only as a way to reference the site and label it on a map. The site number is not an indication of preference or

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-13 priority. Figure D-1 shows an overview of the potential sites inventory map developed for Los Gatos’ 6th cycle Housing Element Update. The following sites make up the Site Inventory, which is available as Appendix H.

Sites Details
This section provides information on each of the sites selected for inclusion in the Sites Inventory of vacant and available sites.

Figure D-1 Overall Area Parcel Locations

HCD Draft Revised Draft 2023-2031 Housing Element

Appendix D. Sites Inventory Analysis

HCD Draft Revised Draft 2023-2031 Housing Element
D-16 Appendix D March SeptemberNovemberJanuary 20242023 Figure D-2 Downtown Area

Appendix D. Sites Inventory Analysis

HCD Draft Revised Draft 2023-2031 Housing Element

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-19 Figure D-3 Downtown Area Asset Map

HCD Draft Revised Draft 2023-2031 Housing Element

Appendix D. Sites Inventory Analysis

HCD Draft Revised Draft 2023-2031 Housing Element
D-22 Appendix D March SeptemberNovemberJanuary 20242023 Site A-1 Park Avenue
Addresses: 50 Park Avenue and 61 Montebello Way
Number of Housing Units: 5
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Park Avenue Site (A-1) is located in the Downtown Area on the southwest end of Town on a wooded parcel that is currently identified as Very High Fire Risk. The site is triangular in shape with parking lots and South Santa Cruz Avenue on one side, Highway 17 on a second side, and Downtown Los Gatos forming the third side. Proximity to Downtown Los Gatos ensures that this site provides pedestrian access to urban services. This site currently is developed with residential units and is designated Medium Density Residential. The site is zoned R-1D and would allow five housing units developed at a minimum density of five du/ac.

Amenities: The closest public school is Los Gatos High School and is approximately 0.5 miles away. The closest public transit line is a Valley Transporation Authority bus stop located at West Main Street and South Santa Cruz Avenue and is approximately 0.2 miles away.

Property Owner Interest Form Submitted: Yes.

Constraints: Very high fire hazard; existing residential dwelling units would require demolition.

Figure D-4 Park Avenue (Site A-1)

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-23 Site A-2 South Santa Cruz Avenue
Address: 101 South Santa Cruz Avenue
APN: 529-01-022
Number of Housing Units: 16
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The South Santa Cruz Avenue Site (A-2) is located in the Downtown Area on the southwest end of Town along South Santa Cruz Avenue on an occupied commercial parcel in Downtown Los Gatos. The site is currently identified as Medium Density Residential. Proximity tTo Downtown Los Gatos ensures that this site provides pedestrian access to urban services.

This site is designated as Central Business District and zoned C-2, which would allow 16 housing units developed at a minimum density of 20 du/ac.

Amenities: The closest public school is Los Gatos High School and is approximately 0.5 miles away. The closest public transit line is a Valley Transporation Authority bus stop located at West Main Street and South Santa Cruz Avenue and is approximately 300 feet away.

Property Owner Interest Form Submitted: Yes.

Constraints: Very high fire hazard; the existing commercial use would require demolition.

Figure D-5 South Santa Cruz Avenue (Site A-2)

HCD Draft Revised Draft 2023-2031 Housing Element
D-24 Appendix D March SeptemberNovemberJanuary 20242023 Site A-3 University Avenue
Address: 165 Los Gatos-Saratoga Road
APN: 529-04-083
Number of Housing Units: 7
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The University Avenue Site (A-3) is located in the Downtown Area at the corner of Los Gatos-Saratoga Road and University Avenue on an occupied commercial site. Proximity to Downtown Los Gatos ensures that this site would provide pedestrian access to urban services.

This site is designated as Central Business District and zoned C-2, which would allow seven housing units developed at a minimum density of 20 du/ac.

Amenities: The closest public school is Los Gatos High School and is approximately 0.8 miles away. The closest public transit line is a Valley Transporation Authority bus stop located at Saratoga-Los Gatos Road and University Avenue and is approximately 360 feet away.

Property Owner Interest Form Submitted: Yes.

Constraints: Existing commercial building would require demolition.

Figure D-6 University Avenue (Site A-3)

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-25 Figure D-7 Los Gatos Lodge Area

HCD Draft Revised Draft 2023-2031 Housing Element
D-26 Appendix D March SeptemberNovemberJanuary 20242023 Figure D-8 Los Gatos Lodge Area Asset Map

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-27 Site B-1 Los Gatos Lodge
Address: 50 Los Gatos-Saratoga Road
APN: 529-04-083
Number of Net Housing Units: 2624
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Los Gatos Lodge Site (B-1) is located in the Los Gatos Lodge Area immediately adjacent to the interchange of Highway 9 and Highway 17, east of Downtown Los Gatos. The site is the current location of the Los Gatos Lodge, with the Los Gatos High School sports fields to the south, lower-density residential uses across Bella Vista Avenue to the east, and Best Western Inn across Highway 9 on the north. This site is designated as Mixed-Use Commercial and zoned CH:PD, which would allow 264 housing units developed at a minimum density of 30 du/ac.

Amenities: The closest public school is Louise Van Meter ElementaryLos Gatos High School and is approximately 0.9 1 miles away. The closest public transit line is a Valley Transporation Authority bus stop located at Los Gatos Boulevard and Stacia Street and is approximately 0.4 miles away.

Property Owner Interest Form Submitted: Yes.

Constraints: Existing commercial buildings would require demolition and removal or modification of the existing Planned Development Overlay to accommodate residential.

Figure D-9 Los Gatos Lodge (Site B-1)

HCD Draft Revised Draft 2023-2031 Housing Element
D-28 Appendix D March SeptemberNovemberJanuary 20242023 Figure D-10 Los Gatos Boulevard Area

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-29 Figure D-11 Los Gatos Boulevard Area Asset Map

HCD Draft Revised Draft 2023-2031 Housing Element
D-30 Appendix D March SeptemberNovemberJanuary 20242023 Site C-1 Ace Hardware
Address: 15300 Los Gatos Boulevard
APN: 529-04-083
Number of Housing Units: 48
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Ace Hardware Site (C-1) is located in the Los Gatos Boulevard Area on the east side of Los Gatos Boulevard and north of Gateway Drive. The site is the current location of Ace Hardware, with commercial uses to the north, south, and west, and lower-density residential uses to the east. The site is designated as Mixed-Use Commercial and zoned C-1, which would accommodate 48 housing units developed at a minimum density of 30 du/ac.

Amenities: The closest public school is Raymond J. Fisher Middle School and is approximately

1.7 miles away. The closest public transit line is a Valley Transporation Authority bus stop located at Los Gatos Boulevard and Lark Avenue and is approximately 443 feet away.

Property Owner Interest Form Submitted: Yes.

Constraints: Existing commercial building would require demolition.

Figure D-12 Ace Hardware (Site C-1)

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-31 Site C-2 Los Gatos Boulevard
Address: 15349, 15367, and 15405 Los Gatos Boulevard
APN: 424-19-049, 424-19-048, 424-19-069
Number of Housing Units: 86
“By Right” + 20% Affordable: Required – Not used in previous cycle.

Description: The Los Gatos Boulevard Site (C-2) is located in the Los Gatos Boulevard Area on the west side of Los Gatos Boulevard, and south of Garden Lane. The site is the current location of multiple commercial uses, with commercial uses to the north, south, and east, and lowerdensity residential uses to the west. The site is designated as Mixed-Use Commercial and zoned CH, which would accommodate 86 housing units developed at a minimum density of 30 du/ac.

Amenities: The closest public school is Raymond J. Fisher Middle School and is approximately

1.1 miles away. The closest public transit line is a Valley Transporation Authority bus stop located at Los Gatos Boulevard and Garden Lane and is approximately 80 feet away.

Property Owner Interest Form Submitted: Yes.

Constraints: Existing commercial building would require demolition.

Figure D-13 Los Gatos Boulevard (Site C-2)

HCD Draft Revised Draft 2023-2031 Housing Element
D-32 Appendix D March SeptemberNovemberJanuary 20242023 Site C-3 Los Gatos Boulevard
Address: 15425 Los Gatos Boulevard
APN: 424-19-067
Number of Housing Units: 33
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Los Gatos Boulevard Site (C-3) is located in the Los Gatos Boulevard Area on the west side of Los Gatos Boulevard and east of Garden Lane. The site is the current location of office and commerical uses, with commercial uses located on all sides. The site is designated as Mixed-Use Commercial and zoned CH, which would accommodate 33 housing units developed at a minimum density of 30 du/ac.

Amenities: The closest public school is Raymond J. Fisher Middle School and is approximately one mile away. The closest public transit line is a Valley Transporation Authority bus stop located at Los Gatos Boulevard and Village Square and is approximately 395 feet away.

Property Owner Interest Form Submitted: Yes.

Constraints: Existing commercial building would require demolition.

Figure D-14 Los Gatos Boulevard (Site C-3)

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-33 Site C-4 Affordable Treasures
Address: 15795 Los Gatos Boulevard
APN: 529-15-059
Number of Housing Units: 19
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Affordable Treasures Site (C-4) is located in the Los Gatos Boulevard Area at the northwest corner of Los Gatos Boulevard and Farley Lane. The site is the current location of Affordable Treasures Party Store with commercial uses located to the north, south, and east and lower-density residential uses located to the west. The site is designated as Mixed-Use Commercial and zoned CH, which would accommodate 19 housing units developed at a minimum density of 30 du/ac.

Amenities: The closest public school is Raymond J. Fisher Middle School and is approximately

0.6 miles away. The closest public transit line is a Valley Transporation Authority bus stop located at Los Gatos Bouelvard and Farley Road and is approximately 167 feet away.

Property Owner Interest Form Submitted: Yes.

Constraints: Existing commercial building would require demolition.

Figure D-15 Affordable Treasures (Site C-4)

HCD Draft Revised Draft 2023-2031 Housing Element
D-34 Appendix D March SeptemberNovemberJanuary 20242023 Site C-5 Los Gatos Boulevard
Address: 16203 Los Gatos Boulevard
APN: 529-16-069
Number of Housing Units: 24
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Los Gatos Boulevard Site (C-5) is located in the Los Gatos Boulevard Area at the northwest corner of Los Gatos Boulevard and Roberts Road. The site is the current location of NC Boardshop skateboard shop and Autobahn Los Gatos, with commercial uses located to the north, east, and west and medium-density residential uses located to the south. The site is designated as Mixed-Use Commercial and zoned CH, which would accommodate 24 housing units developed at a minimum density of 30 du/ac.

Amenities: The closest public school is Raymond J. Fisher Middle School and is approximately

0.2 miles away. The closest public transit line is a Valley Transporation Authority bus stop located at Los Gatos Bouelvard and Roberts Road and is approximately 400 feet away.

Property Owner Interest Form Submitted: No; however, a Conceptual Development Advisory Committee application for a mixed-use development was submitted on November 17, 2020 pending an anticipated density increase as part of the General Plan and Housing Element Updates.

Constraints: Existing commercial buildings would require demolition.

Figure D-16 Los Gatos Boulevard (Site C-5)

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-35 Site C-6 Los Gatos Boulevard
Address: 16492 Los Gatos Boulevard and Assessor Parcel Number 532-07-08685 APN: 532-07-085, 532-07-086
Number of Housing Units: 6
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Los Gatos Boulevard Site (C-6) is located in the Los Gatos Boulevard Area on the east side of Los Gatos Boulevard, north of Spencer Avenue. The site is the current location of LG Wines and Liquors and Happy Cleaners, with commercial uses located to the north, south, and west and low-density residential uses located to the east. The site is designated as Low Density Residential but zoned C-1, which would accommodate 6 housing units developed at a minimum density of 10 du/ac.

Amenities: The closest public school is Louise Van Meter Elementary School and is approximately 0.3 miles away. The closest public transit line is a Valley Transporation Authority bus stop located at Los Gatos Bouelvard and Nino Avenue and is approximately 0.1 miles away.

Property Owner Interest Form Submitted: Yes, and the owner has submitted written interest in changing the land use designation to Neighborhood Commercial.

Constraints: Existing commercial building would require demolition.

Figure D-17 Los Gatos Boulevard (Site C-6)

HCD Draft Revised Draft 2023-2031 Housing Element
D-36 Appendix D March SeptemberNovemberJanuary 20242023 Site C-7 Los Gatos Boulevard
Address: 16151 Los Gatos Boulevard
APN: 529-16-040
Number of Housing Units: 106
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Los Gatos Boulevard Site (C-7) is located in the Los Gatos Boulevard Area on the west side of Los Gatos Boulevard, south of Blossom Hill Road. The site currently serves as a car dealership with multiple on-site structures and commercial uses located to the north, south, and east. Low-density residential uses are located to the east and further south. The site is designated as Mixed-Use Commercial, but zoned CH, which would accommodate 106 housing units developed at a minimum density of 30 du/ac.

Amenities: The closest public school is Raymond J. Fisher Middle School and is approximately half a mile away. The closest public transit line is a Valley Transporation Authority bus stop located at Los Gatos Boulevard and Magneson Loop and is approximately 0.2 miles away.

Property Owner Interest Form Submitted: Yes.

Constraints: Existing commercial buildings would require demolition.

Figure D-18 Los Gatos Boulevard (Site C-7)

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-37 Site C-8 Blossom Hill Road
Address: 620 Blossom Hill Road
APN: 529-16-041
Number of Housing Units: 79
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Blossom Hill Road Site (C-8) is located in the Los Gatos Boulevard Area on the south side of Blossom Hill Road, west of the Blossom Hill Road and Los Gatos Boulevard intersection. The site currently serves as a car dealership with multiple on-site structures and commercial uses located to the north and east. Residential uses are located to the north, south, and west. The site is designated as Mixed-Use Commercial, but zoned CH, which would accommodate 79 housing units developed at a minimum density of 30 du/ac.

Amenities: The closest public school is Raymond J. Fisher Middle School and is approximately one 0.4 miles away. The closest public transit line is a Valley Transporation Authority bus stop located at Los Gatos Bouelvard and Blossom Hill Road and is approximately half a mile away.

Property Owner Interest Form Submitted: Yes.

Constraints: Existing commercial buildings would require demolition.

Figure D-19 Los Gatos Boulevard (Site C-8)

HCD Draft Revised Draft 2023-2031 Housing Element
D-38 Appendix D March SeptemberNovemberJanuary 20242023 Site C-9 Los Gatos Boulevard
Address: 15480 Los Gatos Boulevard and 15500 Los Gatos Boulevard APN: 424-14-034, 424-14-035
Number of Housing Units: 134
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Los Gatos Boulevard Site (C-9) is located in the Los Gatos Boulevard Area on the west east side of Los Gatos Boulevard, north of Los Gatos Almaden Road. The site currently serves as a car dealership with multiple on-site structures and commercial uses located to the north, south, and west. Residential uses are located to the east and further south. The site is designated as Mixed-Use Commercial, but zoned CH, which would accommodate 134 housing units developed at a minimum density of 30 du/ac.

Amenities: The closest public school is Raymond J. Fisher Middle School and is approximately one mile away. The closest public transit line is a Valley Transporation Authority bus stop located at Los Gatos and Garden opp Moore and is approximately 0.2 miles away.

Property Owner Interest Form Submitted: Yes.

Constraints: Existing commercial buildings would require demolition.

Figure D-20 Los Gatos Boulevard (Site C-9)

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-39 Figure D-21 North Forty Area

HCD Draft Revised Draft 2023-2031 Housing Element
D-40 Appendix D March SeptemberNovemberJanuary 20242023 Figure D-22 North Forty Area Asset Map

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-41 Site D-1 North Forty Phase II
Address: 14859 Los Gatos Boulevard, et. al.

APN: 424-07-094, 424-07-095, 424-07-053, 424-07-009, 424-07-081, 424-07-115, 424-07-116 Number of Net Housing Units: 461452
“By Right” + 20% Affordable: Required – Used in previous cycle.

Description: The North Forty Phase II Site (D-1) is located in the North Forty Area on the west side of Los Gatos Boulevard, south of Burton Road. The site contains existing single-family residences and agriculture uses. Commercial uses are located to the south and west and arterial highways located to the north and east. The site is designated and zoned as North Forty Specific Plan, which would accommodate 461 units at a minimum density of 30 du/ac.

Amenities: The closest public school is Farnham Elementary School and is approximately 0.8 miles away. The closest public transit line is a Valley Transporation Authority bus stop located at Los Gatos Bouelvard and Burton Road and is approximately 115 feet away.

Property Owner Interest Form Submitted: No; however, the property owner has been involved in attending Housing Element Advisory Board (HEAB) meetings and submitted written public comments regarding intent and interest in residential development on the site.

Constraints: Existing buildings would require demolition.

Figure D-23 North Forty Phase II (Site D-1)

HCD Draft Revised Draft 2023-2031 Housing Element
D-42 Appendix D March SeptemberNovemberJanuary 20242023 Site D-2 North Forty Phase II
Address: 16245 Burton Road
APN: 424-06-115, 424-06-116
Number of Net Housing Units: 3837
“By Right” + 20% Affordable: Required – Used in previous cycle.

Description: The North Forty Phase II Site (D-2) is located in the North Forty Area at the terminus of Burton Road, on the west side of Los Gatos Boulevard. The site is underutilized with a single-family residence. Commercial uses are located to the east and arterial highways located to the north and west. The site is designated and zoned as North Forty Specific Plan, which would accommodate 38 housing units developed at a minimum density of 30 du/ac.

Amenities: The closest public school is Farnham Elementary School and is approximately 0.8 miles away. The closest public transit line is a Valley Transporation Authority bus stop located at Los Gatos Bouelvard and Burton Road and is approximately 0.1 miles away.

Property Owner Interest Form Submitted: No; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underway.

Constraints: Existing residential building would require demolition.

Figure D-24 North Forty Phase II (Site D-2)

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-43 Site D-3 North Forty (Phase II)
Address: 16240 Burton Road
APN: 424-07-010
Number of Net Housing Units: EightSeven
“By Right” + 20% Affordable: Required – Used in previous cycle.

Description: The North Forty Phase II Site (D-3) is located in the North Forty Area along Burton Road and adjacent to the Highway 17/Highway 85 interchange. The site contains a single-family residence. Other North Forty Specific Plan properties surround the site. The site is designated and zoned as North Forty Specific Plan, which would accommodate eight housing units developed at a minimum density of 30 du/ac.

Amenities: The closest public school is Farnham Elementary School and is approximately 0.8 miles away. The closest public transit line is a Valley Transporation Authority bus stop located at Los Gatos Bouelvard and Burton Road and is approximately 0.1 miles away.

Property Owner Interest Form Submitted: No; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underway.

Constraints: Existing residential building would require demolition.

Figure D-25 North Forty Phase II (Site D-3)

HCD Draft Revised Draft 2023-2031 Housing Element
D-44 Appendix D March SeptemberNovemberJanuary 20242023 Site D-4 North Forty Phase II
Address: 16270 Burton Road
APN: 424-07-052
Number of Net Housing Units: 1312
“By Right” + 20% Affordable: Required – Used in previous cycle.

Description: The North Forty Phase II Site (D-4) is located in the North Forty Area at the end of Burton Road and immediately adjacent to the Highway 17/Highway 85 interchange. The site contains a single-family residence. Other North Forty Specific Plan properties surround the site.

The site is designated and zoned as North Forty Specific Plan, which would accommodate 13 housing units developed at a minimum density of 30 du/ac.

Amenities: The closest public school is Farnham Elementary School and is approximately 0.8 miles away. The closest public transit line is a Valley Transporation Authority bus stop located at Los Gatos Bouelvard and Burton Road and is approximately 0.2 miles away.

Property Owner Interest Form Submitted: No; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underway.

Constraints: Existing residential building would require demolition.

Figure D-26 North Forty Phase II (Site D-4)

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-45 Site D-5 North Forty Phase II
Address: 16210 Burton Road and 14831 Los Gatos Boulevard APN: 424-07-054, 424-07-063
Number of Net Housing Units: 2523
“By Right” + 20% Affordable: Required – Used in previous cycle.

Description: The North Forty Phase II Site (D-5) is located in the North Forty Area along Burton Road and on the west side of Los Gatos Boulevard. The site contains single-family residences.

Other North Forty Specific Plan properties surround the site. The site is designated and zoned as North Forty Specific Plan, which would accommodate 25 housing units developed at a minimum density of 30 du/ac.

Amenities: The closest public school is Farnham Elementary School and is approximately 0.8 miles away. The closest public transit line is a Valley Transporation Authority bus stop located at Los Gatos Bouelvard and Burton Road and is approximately 0.1 miles away.

Property Owner Interest Form Submitted: No; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underway.

Constraints: Existing residential building would require demolition.

Figure D-27 North Forty Phase II (Site D-5)

HCD Draft Revised Draft 2023-2031 Housing Element
D-46 Appendix D March SeptemberNovemberJanuary 20242023 Site D-6 North Forty Phase II
Address: 14849 Los Gatos Boulevard
APN: 424-07-064
Number of Net Housing Units: 2827
“By Right” + 20% Affordable: Required – Used in previous cycle.

Description: The North Forty Phase II Site (D-6) is located in the North Forty Area on the west side of Los Gatos Boulevard, south of Burton Road. The site contains a single-family residence.

Other North Forty Specific Plan properties surround the site on the north, south, and west. East of the site, across Los Gatos Boulevard there are commercial uses. The site is designated and zoned as North Forty Specific Plan, which would accommodate 28 housing units developed at a minimum density of 30 du/ac.

Amenities: The closest public school is Farnham Elementary School and is approximately 0.8 miles away. The closest public transit line is a Valley Transporation Authority bus stop located at Los Gatos Bouelvard and Burton Road and is approximately 65 feet away.

Property Owner Interest Form Submitted: No; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underway.

Constraints: Existing residential building would require demolition.

Figure D-28 North Forty Phase II (Site D-6)

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-47 Site D-7 North Forty Phase II
Address: 14823 Los Gatos Boulevard
APN: 424-07-065
Number of Net Housing Units: 101
“By Right” + 20% Affordable: Required – Used in previous cycle.

Description: The North Forty Phase II Site (D-7) is located in the North Forty Area at the southwest corner of Burton Road and Los Gatos Boulevard. The site contains a single-family residence. Other North Forty Specific Plan properties surround the site on the south and west.

North of the site, across Burton Road, and east of the site, across Los Gatos Boulevard, there are commercial uses. The site is designated and zoned as North Forty Specific Plan, which would accommodate 11 housing units developed at a minimum density of 30 du/ac.

Amenities: The closest public school is Farnham Elementary School and is approximately 0.7 miles away. The closest public transit line is a Valley Transporation Authority bus stop located at Los Gatos Bouelvard and Burton Road and is approximately 120 feet away.

Property Owner Interest Form Submitted: No; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underway.

Constraints: Existing residential building would require demolition.

Figure D-29 North Forty Phase II (Site D-7)

HCD Draft Revised Draft 2023-2031 Housing Element
D-48 Appendix D March SeptemberNovemberJanuary 20242023 Figure D-30 Lark Avenue Area

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-49 Figure D-31 Lark Avenue Area Asset Map

HCD Draft Revised Draft 2023-2031 Housing Element
D-50 Appendix D March SeptemberNovemberJanuary 20242023 Site E-1 Oka Road
Address: Oka Road
APN: 424-08-057, 424-08-029, 424-08-059, 424-08-060, 424-08-058, 424-08-017, 424-08-021 Number of Net Housing Units: 124121
“By Right” + 20% Affordable: Required – Used in previous cycle.

Description: The Oka Road Site (E-1) is located in the Lark Avenue Area on the east side of Oka Road, north of Lark Avenue. The site contains residential and agricultural uses. Major arterial highways are located north and east of the site, with the Los Gatos Swim and Racquet Club immediately north. Agricultural and commercial uses are located across Oka Road. The site is designated as Low-Density Residential and Medium-Density Residential. Parcels within the site are zoned R-1-8 and R-M:5-12, which would allow 124 housing units developed at a typical density of four du/ac for parcels designated as Low-Density Residential and at a typical minimum of 14 du/ac for parcels designated as Medium-Density Residential.

Amenities: The closest public school is Raymond J. Fisher Middle School and is approximately

1.9 miles away. The closest public transit line is a Valley Transporation Authority bus stop located at Los Gatos Bouelvard and Lark Avenue and is approximately 0.7 miles away.

Property Owner Interest Form Submitted: No; however the property owner has submitted a public comment to the HEAB regarding future development of the site.

Constraints: Existing buildings would require demolition.

Figure D-32 Lark Avenue (Site E-1)

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-51 Site E-2 Oka Lane
Address: Oka Lane
APN: 424-08-074
Number of Housing Units: 26
“By Right” + 20% Affordable: Required – Used in previous cycle.

Description: The Oka Lane Site (E-2) is located in the Lark Avenue Area on the west side of Oka Road, north of Lark Avenue. The site contains agricultural uses. Major arterial highways are located north and east of the site, with the Bonnie View mobile home park to the north.

Agricultural and commercial uses are located across Oka Road. The site is designated as LowDensity Residential. The site is zoned R-1:8, which would allow 26 housing units developed at a typical density of 4 du/ac.

Amenities: The closest public school is Raymond J. Fisher Middle School and is approximately

1.8 miles away. The closest public transit line is a Valley Transporation Authority bus stop located at Winchester Bouelvard and Lark Avenue and is approximately 0.8 miles away.

Property Owner Interest Form Submitted: No; however the property owner has submitted a public comment to the HEAB regarding future development of the site.

Constraints: Proximity to adjacent highways.

Figure D-33 Oka Lane (Site E-2)

HCD Draft Revised Draft 2023-2031 Housing Element
D-52 Appendix D March SeptemberNovemberJanuary 20242023 Site E-3 Caltrans Right of Way
Address: Caltrans Right of Way
APN: N/A
Number of Housing Units: 69
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Caltrans Right of Way Site (E-3) is located in the Lark Avenue Area south and west of the Highway 17/Highway 85 interchange. The site is currently vacant. Major arterial highways are located north and east of the site. Commercial uses are located west of the site across Oka Road, and the Bonnie View mobile home park is located immediately south of the site. Should the site be annexed by the Town, it is designated as Medium-Density Residential and zoned as R-M:5-12, which would accommodate 69 housing units developed at a minimum density of 14 du/ac.

Amenities: The closest public school is Raymond J. Fisher Middle School and is approximately

2.1 miles away. The closest public transit line is a Valley Transporation Authority bus stop located at Los Gatos Bouelvard and Lark Avenue and is approximately 0.8 miles away.

Property Owner Interest Form Submitted: No, the Town has yet to reach out to Caltrans regarding future development of the site.

Constraints: Consultation with Caltrans for future development.

Figure D-34 Caltrans Right of Way (Site E-3)

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-53 Figure D-35 Winchester Boulevard Area

HCD Draft Revised Draft 2023-2031 Housing Element
D-54 Appendix D March SeptemberNovemberJanuary 20242023 Figure D-36 Winchester Boulevard Area Asset Map

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-55 Site F-1 Knowles Drive
Address: 110 Knowles Drive
APN: 424-32-077
Number of Housing Units: 220
“By Right” + 20% Affordable: Required – Used in previous cycle.

Description: The Knowles Drive Site (F-1) is located in the Winchester Boulevard Area north and west of the Highway 17/Highway 85 interchange. The site contains industrial uses. Los Gatos Creek is immediately south and east of the site, with low-density residential uses located beyond.

High-density residential uses are located south and west of the site. Commercial/industrial uses are located north of the site across Knowles Drive. The site is designated as High-Density Residential and zoned CM:AHOZ, which would accommodate 220 housing units developed at a minimum density of 30 du/ac.

Amenities: The closest public school is Daves Elementary School and is approximately 2.3 miles away. The closest public transit line is a Valley Transporation Authority bus stop located at Knowles Drive and Capri Drive and is approximately 0.3 miles away.

Property Owner Interest Form Submitted: No; however the site is located within the Affordable Housing Overlay Zone.

Constraints: Existing buildings would require demolition and adjacency to the Los Gatos Creek Trail.

Figure D-37 Knowles Drive (Site F-1)

HCD Draft Revised Draft 2023-2031 Housing Element
D-56 Appendix D March SeptemberNovemberJanuary 20242023 Site F-2 Winchester Boulevard
Address: 206 Knowles Drive
APN: 424-32-076
Number of Housing Units: 72
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Winchester Boulevard Site (F-2) is located in the Winchester Boulevard Area at the northeast intersection of A Street and Knowles Drive. The site contains office uses. Multifamily residential is located to the south and office uses are located to the north, south, and west of the site. The site is designated as High-Density Residential and zoned CM, which would accommodate 72 housing units developed at a minimum density of 30 du/ac.

Amenities: The closest public school is Daves Elementary School and is approximately 2.1 miles away. The closest public transit line is a Valley Transporation Authority bus stop located at Knowles Drive and Capri Drive and is approximately 0.1 miles away.

Property Owner Interest Form Submitted: No; however, the site is located immediately adjacent to 110 Knowles Drive (Site F-1), which has an Affordable Housing Overlay Zone.

Constraints: Existing buildings would require demolition and adjacency to the Los Gatos Creek Trail.

Figure D-38 Winchester Boulevard (Site F-2)

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-57 Figure D-39 Union Avenue Area

HCD Draft Revised Draft 2023-2031 Housing Element
D-58 Appendix D March SeptemberNovemberJanuary 20242023 Figure D-40 Union Avenue Area Asset Map

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-59 Site G-1 Los Gatos-Almaden Road
Address: 440 Los Gatos Almaden Road
APN: 527-49-048, 527-49-049
Number of Housing Units: 8
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Los Gatos-Almaden Road Site (G-1) is located in the Union Avenue Area at the northwest corner of Leigh Avenue and Los Gatos-Almaden Road. The site contains a gas station and commercial building. Low-density residential are located north, south, and west of the site.

Leigh High School is located east of the site across Leigh Avenue. The site is designated as Neighborhood Commercial and zoned C-1, which would accommodate 8 housing units developed at a minimum density of 10du/ac.

Amenities: The closest public school is Leigh High School and is approximately 0.2 miles away.

The closest public transit line is a Valley Transporation Authority bus stop located at Los GatosAlmaden Road and Leigh Avenue and is approximately 240 feet away.

Property Owner Interest Form Submitted: Yes
Constraints: Existing gas station and commercial building would require demolition.

Figure D-41 Los Gatos-Almaden Road (Site G-1)

HCD Draft Revised Draft 2023-2031 Housing Element
D-60 Appendix D March SeptemberNovemberJanuary 20242023 Figure D-42 Harwood Road Area

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-61 Figure D-43 Harwood Area Asset Map

HCD Draft Revised Draft 2023-2031 Housing Element
D-62 Appendix D March SeptemberNovemberJanuary 20242023 Site H-1 Valero
Address: 14000 Blossom Hill Road
APN: 527-32-028
Number of Housing Units: 7
“By Right” + 20% Affordable: Not Required – Not used in previous cycle Property Owner Interest Form Submitted:

Description: The Valero Site (H-1) is located in the Harwood Road Area at the southwest corner of Blossom Hill Road and Harwood Road. The site contains a gas station. Low-density residential are located north, south, and east of the site. Commercial uses are located immediately west of the site. The site is designated as Neighborhood Commercial and zoned C1, which would accommodate 7 housing units developed at a minimum density of 10 du/ac.

Amenities: The closest public school is Noddin Elementary School and is approximately 0.2 miles away. The closest public transit line is a Valley Transporation Authority bus stop located at Blossom Hill Road and Harwood Road and is approximately 220 feet away.

Property Owner Interest Form Submitted: Yes.

Constraints: Existing gas station and commercial building would require demolition.

Figure D-44 Valero (Site H-1)

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-63 Figure D-45 Alberto Way Area

HCD Draft Revised Draft 2023-2031 Housing Element
D-64 Appendix D March SeptemberNovemberJanuary 20242023 Figure D-46 Alberto Way Area Asset Map

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-65 Site I-1 Alberto Way
Address: 401-409 Alberto Way
APN: 529-23-018
Number of Housing Units: 60
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.

Description: The Alberto Way Site (I-1) is located in the Alberto Way Area, located at the intersection of Alberto Way and Los Gatos-Saratoga Road. The site is currently vacant, where previous structures on site have already been cleared for development. Multi-family residential are located north and east of the site. Commercial uses are located immediately south and east of the site with Highway 17 to the west. The site is designated as Mixed Use Commercial and zoned CH, which would accommodate 60 housing units developed at a density of 27 du/ac based on a development application submitted by the property owner to the Town on December 6, 2022.

Amenities: The closest public school is Los Gatos High School and is approximately 0.8 miles away. The closest public transit line is a Valley Transporation Authority bus stop located at Los Gatos Boulevard and Caldwell Avenue and is approximately 0.4 miles away.

Property Owner Interest Form Submitted: Yes.

Constraints: Proximity to adjacent Highway 17 onramp.

Figure D-47 Alberto Way (Site I-1)

HCD Draft Revised Draft 2023-2031 Housing Element
D-66 Appendix D March SeptemberNovemberJanuary 20242023 Accessory Dwelling Unit (ADUs and Junior ADUs) Projections Address: Various Locations
Number of Housing Units: 200
“By Right” + 20% Affordable: Not required, instead a formula exists for projecting the next eight-year cycle, along with assumptions of 30 percent very-low income units, 30 percent low income units, 30 percent moderate income units, and 10 percent above moderate categories.

Description: In addition to the housing units identified in the Town’s Sites Inventory the production of new accessory dwelling units are ulitizied in meeting the Town’s RHNA requirements. The Town analyzed the total number of ADU buidilng permits that have been approved in the last three years to identify the average number of ADU units that will be developed over the eight year planning period.

Figure D-48 below includes an analysis of the Town’s issued building permits for ADU’s between the years 2020 to 2022. In 2020, the Town issued building permits for 27 new ADUs. In 2021, the Town issued 36 building permits for new ADU’s. In 2022, the Town issued 35 building permits for new ADU’s. The last three years of data results in an average of 32 approved ADU building permits per year, however utilizing a conservative estimate the Town is using annual ADU projection of 25 units. This results in a total of 200 dwelling units planned to be constructed over the eight year planning period of the Housing Element. Program UQ: Accessory Dwelling Units has been included to monitor the number of ADU applications annually.

Based on ABAG’s pre-approved ADU Affordability Survey, the income/affordability distribution for ADUs is: 30 percent very low income; 30 percent low income; 30 percent moderate income; and 10 percent above moderate income.

Furthermore, during the RHNA projection period prior to the start of the Housing Element planning period (i.e., between June 30, 2022 and January 30, 2023), 23 ADUs and JADUs were either issued building permits, under construction, or finaled. Among these units:
 3 JADUs less than 400 square feet – average 243 square feet  11 JADUs and ADUs between 400 and 800 square feet – average 549 square feet  9 ADUs more than 800 square feet in size – average 1,027 square feet The JADUs less than 400 square feet were assumed to be affordable to low income households given the small size. Other small size units (between 400 and 800 square feet) are assumed to be affordable to moderate income households, similar to small studio and one bedroom units. Units above 800 square feet are affordable to above moderate income households only.

Constraints: None.

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-67 Figure D-48 ADU Building Permits Issued 2020-2022
Source: Town of Los Gatos Community Development Department.

HCD Draft Revised Draft 2023-2031 Housing Element
D-68 Appendix D March SeptemberNovemberJanuary 20242023 Senate Bill 9 (SB 9) Projections
Address: Various Locations
Minimum Number of Housing Units: 96
“By Right” + 20% Affordable: Not required – Instead, formula exists for projecting the next eight-year cycle.

Description: In addition to ADU’s the production of new housing units through SB 9 are being ulitizied to meet a portion of the Town’s RHNA requirements. In compliance with SB 9, the Town of Los Gatos has adopted a SB 9 that allows for the by-right ministerial review of urban lot splits and/or two-unit development requests on singlefamily residentially zoned parcels.

Since the adoption the Town’s SB 9 Ordinane, the Town has received a total of four Two-Unit Housing Development applications and seven Urban Lot Split applications (between January 2022 and January 2023).

The applications result in a total of 13 net new housing units a year. Based on the number of applications received during the first year of SB 9 the Town is ulitizing an estimate of 12 net new housing units per year and anticipating a total of 96 residential units to be developed under SB 9 during the eight year planning period.

Within the own, 6,940 parcels in the single-family zones have parcel size over 5,000 square feet (a conservative estimate compared to the minimum State requirement of 2,500 square feet) eligible for lot split. To estimate the number of parcels with potential for urban lot split, these factors were considered to exclude:

Existing lot coverage (more than 40 percent) – Estimated by dividing building area by the number of stories
Year Built (1940 or earlier) – The Town considers homes built prior to 1941 as historic homes.

Improvement to land value ratio (more than 1.0 and therefore improvements are worth more than the land) – Similar to age of structure, newer homes that are worth more than the land may be financially less conducive to lot splits.

Overall, 2,971 parcels meet these criteria. The projection of 12 units annually represents the potential participation of less than 0.5 percent of probable parcels and therefore a fairly conservative estimate.

Below are examples of how SB 9 can be applied to some typical properties in the Town under the urban lot split and two-unit development scenarios.

Parcels eligible for an Urban Lot Split Application
100 Alerche Drive
Minimum Lot Size (40
percent of original
parcel)
Minimum Lot Width
(20 feet)
Minimum Public
Frontage (20 feet)
Minimum Public
Frontage, Flag Lot (12
feet)
Original Parcel 62,833 square feet 180 191 N/A
Parcel 1 25,165 square feet 120 240 N/A
Parcel 2 37,668 square feet 180 191 N/A
16405 Kennedy Road
Minimum Lot Size (40
percent of original
parcel)
Minimum Lot Width
(20 feet)
Minimum Public
Frontage (20 feet)
Minimum Public
Frontage, Flag Lot (12
feet)
Original Parcel 26,100 square feet 78 150 N/A
Parcel 1 10,607 square feet 105 141 N/A
Parcel 2 15,503 square feet 78 150 N/A
Parcels eligible for a Two-Unit Development Application 16619 Marchmont Drive

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-69 Maximum
Building Height
(30 feet)
Minimum
Driveway Width
(10 feet)
Minimum Setbacks
Proposed Square
Footage
(First Unit Limited
to 1,200 square
feet)
Front: 25 feet
Garage Entry: 18 feet
Interior Side: 4 feet
Rear: 4 feet
Street Side: 15 feet
Separation between detached structure: 5 feet
Unit 1 25 18
Front: 25 feet
1,200
Garage Entry: 25 feet
Interior Side: 4 feet
Rear: 32 feet
Separation between detached structure: 5 feet
Unit 2 25 12
Front: 25 feet
3,184
Garage Entry: 25 feet
Interior Side: 8 feet
Rear: 54 feet
Separation between detached structure: 5 feet
14261 Capri Drive
Maximum
Building Height
(30 feet)
Minimum
Driveway Width
(10 feet)
Minimum Setbacks
Proposed Square
Footage
(First Unit Limited
to 1,200 square
feet)
Front: 25 feet
Garage Entry: 18 feet
Interior Side: 4 feet
Rear: 4 feet
Street Side: 15 feet
Separation between detached structure: 5 feet
Unit 1 15 10
Front: 25 feet
857
Garage Entry: N/A
Interior Side: 15 feet
Rear: 72 feet
Separation between detached structure: 15 feet
Unit 2 22 10
Front: 25 feet
1,663
Garage Entry: 25 feet
Interior Side: 15 feet
Rear: 120 feet
Separation between detached structure: 5 feet
Program BL: Senate Bill 9 Monitoring has been included to monitor the number of SB 9 applications annually.

Constraints: None.

Appendix D. Sites Inventory Analysis
D-70 Appendix D JanuaryNovemberSeptember March 20232024 Units Entitled/Permitted/Under Construction/Finaled Since June 30, 2022, to January 31, 2023 Address: See addresses listed below in Table D-7
Number of Housing Units: 2272 net new units
“By Right” = 20% Affordable: Not required.

Description: Units that are made available during the RHNA projection period (June 30, 2022, through January 31, 2031) can be credited toward the RHNA. Since June 30, 2022, the Town has entitled, permitted, and finaled a number of housing projects and one project was under construction. These projects added 2272 housing units to the Town’s inventory.

Table D-7 Entitled/Permitted/Under Construction/Finaled Address APN Net
Units
Very LowIncome
Units
Low
Income
Units
Moderate
Income
Units
Above
Moderate
Income
Units
BMP InLieu Fee
Hillside
PD
Project
Description Project Status
North Forty Phase 1 424-07-100 194 49 0 1 144 N
Mixed development
consisting of 320
residential units.

Planning Entitlements Approved, Building
Permits at Various Stages of Review,
Approval and Construction. 194 units
finaled after June 30, 2022, including 49
very-low income senior units and one
affordable caretaker's unit.

North Forty Phase 1 424-07-100 30 0 0 1 29 N
Mixed development
consisting of 320
residential units.

Planning Entitlements Approved, Building
Permits at Various Stages of Review,
Approval and Construction. 30 units under
construction.
20102 Foster Road 537-33-009 1 0 0 0 1 Y
One single-family
residence on a vacant
lot.

Building finaled.
14335 La
Rinconada Drive 409-14-026 1 0 0 0 1 N
Subdivision of one lot to
two lots. Net one single
family residential lot.

Planning Entitlements Approved.
14330 La
Rinconada Drive
07/19/23
409-14-020 1 0 0 0 1 N
Subdivision of one lot to
two lots. Net one single
family residential lot.

Planning Entitlements Under Review.

Total Net Units 2227 049 0 02 2176

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-71 Pipeline Projects
Address: See addresses listed below in Table D-8Table D-23.

Number of Net Housing Units: 201191
“By Right” = 20% Affordable: Not required.

Description: The Town has residential development applications that have either been approved or are currently under review and are expected to be built during the 2023-2031 planning period are referred to as “Pipeline Projects”. Table D-8 Table D-2 shows these approved and planned projects. For each project, the table includes the address, accessor parcel number (APN), number of units by income category, project description, whether or not the project is subject to BMP In-Lieu Fees as part of a Hillside Planned Development (PD), and project status.

Several projects included demolition or renovation of existing residences. The inventory does not count replacement units or renovated units toward RHNA; rather, only the net new capacity is counted towards RHNA. Units are categorized by income level as follows:
 Projects with deed-restricted affordable units are counted towards the very low-, low- or moderate income RHNA, as applicable.  Projects that include non-deed restricted market-rate rental multifamily units are assumed to meet the above moderate income RHNA.  Projects that include market-rate attached ownership or single-family units are assumed to meet above moderate income RHNA based on recent home sale prices that are generally only affordable to above market-income households.  Projects that are residential planned development projects with five (5) to nine (9) units with an underlying zone of Hillside Residential shall pay a Below Market Price In-Lieu fee prior to issuance of the certificate of occupancy. The in-lieu fee shall be equal to the amount of six (6) percent of the building permit valuation for the entire project.

As shown in Table D-28, there are 28 projects in the pipeline that will provide a total of 201 191 net new units.

Constraints: None.

HCD Draft Revised Draft 2023-2031 Housing Element
D-72 Appendix D JanuaryNovember SeptemberMarch 20232024 Table D-8 Table D-23 Pipeline Projects Table
Address APN Net
Units
Very LowIncome
Units
Low
Income
Units
Moderate
Income
Units
Above
Moderate
Income
Units
BMP InLieu Fee
Hillside
PD
Project Description Project Status
246 Almendra Ave. 510-14-019 +1 0 0 0 1 N
One new single-family
residence on a vacant lot.

Planning Entitlements Approved,
Building Permit Under Review.
16466 Bonnie Ln. 532-02-053 +1 0 0 0 1 N
One new single-family
residence on a vacant lot.

Subdivision Approved, Planning
Entitlements for Development on Newly
Created Lot Has Not Been Submitted.
2021 Foster Rd.
537-33-001 +1 0 0 0 1 Y
One new single-family
residence on a vacant lot.

Planning Entitlements Approved,
Building Permit Under Review.
16195 George St. 529-18-051 +3 0 0 0 03 N
Demo of an existing
residence and construction of
four new condos. Net of
three units.

Planning Entitlements Approved,
Building Permit Under Review.
16100 Greenridge
Terrace 527-12-002 +8 0 0 0 8 Y
Subdivision of one vacant lot
into eight hillside lots.

Subdivision Entitlements and Site
Improvements Approved, Site
Improvements Under Construction,
Planning Entitlements for Development
on Newly Created Lots Have Not Been
Submitted.
200 Happy Acres
Rd. 537-24-030 +1 0 0 0 1 N
One new single-family
residence on a vacant lot. Planning Entitlements Under Review. 16220 Harwood Rd. 567-18-051 +2 0 0 0 2 N
Subdivision of one lot into
three lots, and a net of two
new single-family residences.

Subdivision Approved, Planning
Entitlements Under Review.
16461 S. Kennedy
Rd. 532-17-027 +1 0 0 0 1 N
One new single-family
residence on a vacant lot.

Planning Entitlements Approved,
Building Permits Under Review.

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-73 Address APN Net
Units
Very LowIncome
Units
Low
Income
Units
Moderate
Income
Units
Above
Moderate
Income
Units
BMP InLieu Fee
Hillside
PD
Project Description Project Status
16484 S. Kennedy
Rd. 532-20-012 +1 0 0 0 1 N
One new single-family
residence on a vacant lot.

Planning Entitlements Approved,
Building Permit Under Review.
300 Laurel
Mountain Ln. 567-24-023 +1 0 0 0 1 N
One new single-family
residence on a vacant lot. Planning Entitlements Under Review. 14926 Los Gatos
Blvd. 424-10-009 +5 0
1 Deed
Restricted
0 4 N
Mixed-use building with five
units. Net of five new units. Planning Entitlements Under Review. 17200 Los Robles
Way
532-36-075, -
076, and -
077.
+2 0 0 0 2 N
Lot line adjustment of three
parcels showing
development potential of two
vacant parcels. Net of two
lots.

Lot Line Adjustment Approved,
Planning Entitlements for Newly
Created Lots Have Not Been Submitted
15415 National Ave. 424-12-006 +1 0 0 0 1 N
Subdivision of one lot into
two new lots. Net of one new
single-family residence.

Subdivision Approved, Planning
Entitlements for Development on Newly
Created Lots Have Not Been
Submitted.
105 Newell Ave.

New addresses:
(103, 104, 109, and
110 Sporleder Ct)
409-24-016 +4 0 0 0 4 N
Subdivision of one lot
commercial lot into five lots.

Net of four new single-family
residential lots.

Planning Entitlements Approved,
Building Permits Under Review.
120 Oak Meadow
Dr. 529-10-131 +1 0 0 0 1 N
Subdivision of one lot into
two lots and construction of a
new single-family residence.

Planning Entitlements Under Review.
45 Reservoir Rd. 529-33-054 +1 0 0 0 1 N
One new single-family
residence on a vacant lot. Planning Entitlements Under Review. 16940 Roberts Rd. 529-18-053 +2 0 0 0 2 N
Demolition of an existing
single-family residence,
construction of three new
condominium units. Net of
two units.

Planning Entitlements Approved,
Building Permits Approved.

HCD Draft Revised Draft 2023-2031 Housing Element
D-74 Appendix D JanuaryNovember SeptemberMarch 20232024 Address APN Net
Units
Very LowIncome
Units
Low
Income
Units
Moderate
Income
Units
Above
Moderate
Income
Units
BMP InLieu Fee
Hillside
PD
Project Description Project Status
465 N. Santa Cruz
Ave. 410-16-004 +1 0 0 0 1 N
Mixed-use project with one
new dwelling unit in an
existing commercial building.

Planning Entitlements Approved,
Building Permits Approved and Under
Construction.
15343 Santella Ct. 527-09-034 +1 0 0 0 1 Y
One new single-family
residence on a vacant lot. Planning Entitlements Under Review. 15415 Santella Ct. 527-09-022 +1 0 0 0 1 Y
One new single-family
residence on a vacant lot. Planning Entitlements Approved, Building Permit Under Review.
15365 Santella Ct. 527-09-36 +1 0 0 0 1 Y
One new single-family
residence on a vacant lot. Planning Entitlements Approved. 15665 Shady Ln. 527-11-009 +1 0 0 0 1 N
One new single-family
residence on a vacant lot. Planning Entitlements Approved, Building Permit Under Review.
14915 Shannon Rd. 537-27-047 +10 0 0 0 10 Y
Zone Change, General Plan
Amendment, and the
subdivision of one lot into 10
lots.

Planning Entitlements Under Review.
15215 Shannon Rd.

New addresses:
(116, 118, 120, 121
and 123 Rock Ridge
Rd.)
537-25-036 +4 0 0 0 4 Y
Subdivision of one lot into
five hillside lots. Net of four
lots.

Subdivision Entitlements Approved
Planning Entitlements for Development
on Newly Created Lots Have Not Been
Submitted.
400 Surmont Dr. 527-20-003 +2 0 0 0 2 N
Subdivision of one lot into
three lots with two new
hillside homes. Net of two
units.

Planning Entitlements Approved.
15860 Winchester
Blvd.
529-11-013, -
038, -039,
and -040
+1013 0 0 0 0103 N
113 assisted living units with
kitchens (net increase of 103
units).

Planning Entitlements Under Review.

Appendix D. Sites Inventory Analysis
JanuaryNovemberSeptember March 20232024 Appendix D D-75 Address APN Net
Units
Very LowIncome
Units
Low
Income
Units
Moderate
Income
Units
Above
Moderate
Income
Units
BMP InLieu Fee
Hillside
PD
Project Description Project Status
144 Wood Rd. 510-47-044
+1 0 0 0 1 N
One new single-family
residence on a vacant lot. Planning Entitlements Approved.

North Forty Phase 1 424-07-100 +30 0 0 0 30 N
Mixed-use development
consisting of 320 residential
units, including 49 very lowincome senior unit and one affordable caretakers’ unit.
30 units have not received
building permit approval yet.

Planning Entitlements Approved,
Building Permits at Various Stages of
Review and Approval and Construction.

Total Net Pipeline Units = 201191
Source: Town of Los Gatos Community Development Department.

RHNA Credits Summary
A summary of the pipeline projects, projected ADU, and SB 9 development which may serve as credit toward the Town’s RHNA requirements are included below in Table D-3 4 and in total amount to 497 units.

Table D-34 Miscellaneous RHNA Credits
RHNA Credit Affordability Credit
Very Low-Income Low-Income Moderate-Income Above-Moderate Income Total Pipeline Projects 0 1 0 200 201
ADUs 20 60 60 60 200
SB 9 Units 0 0 0 96 96
Total 20 61 60 356 497
Source: Town of Los Gatos Community Development Department.

Appendix D. Sites Inventory Analysis
D-76 Appendix D JanuaryNovemberSeptember March 20232024 Inventory of Vacant and Available Sites
This section provides the formal inventory of sites that the Town of Los Gatos will rely on in the 6th Housing Element planning cycle. Per State law and Housing Policy, the Town is required to maintain “no net loss” of the housing capacity represented by this list of parcels and the sites they comprise. To facilitate this, the inventory presented in Appendix H has been designed with excess capacity. This allows some degree of flexibility in decision making for individual development projects as they come forward for approval.

In short, with some limited flexibility, the Town is committed to permitting housing on each of the parcels listed in the table below, and in so doing ensuring that the number of units listed for each parcel in the table "planned capacity” is achieved. Should the Town approve development that is inconsistent with the parcel’s planned capacity, it is then required as part of that approval to:

1. Find, based on quantitative evidence, that the remaining inventory of housing sites is still sufficient to meet the Town’s 6th cycle RHNA; or

2. Identify one or more available sites with the realistic development capacity to replace the housing that would have otherwise been developed had consistency with planned capacity been achieved.

Appendix H I provides details and capacity estimates for each of the parcels that comprise the Sites Inventory as identified in the section above.

D. 4 5Summary and Conclusions
The sites identified in this report are sufficient to accommodate Los Gatos’ Regional Housing Needs Allocation for the 6th cycle planning period. The RHNA planning period for the ABAG region started on June 30, 2022, therefore housing units that were finaled, permitted, or approved after this date, or were under construction as of June 30, 2022, can be credited toward the current sixth cycle RHNA. RHNA credits for housing units that were finaled, permitted, or approved after this date, or were under construction as of June 30, 2022; ADU projections; Senate Bill 9 projections; and the Pipeline Projects amount to 737416 units, with a remaining RHNA of 1,2561,577 units.

The Sites Inventory accommodates a net capacity of approximately 1,9711,955 units,This number accommodates a buffer surplus of approximately 25 5724 percent above the remaining RHNA of 1,2561,577 units, which would equal capacity of approximately 501 715378 additional units. These sites, in addition to Accessory Dwelling Units Projections, Senate Bill 9 Projections, and Pipeline Projects have a total, net capacity of 2,4942,7082,371 units.

This “cushion” for capacity above the base RHNA number is highly recommended because of the State’s no-netloss policy, which precludes jurisdictions from approving development that results in an overall housing site deficit. The “cushion” essentially provides a degree of flexibility for policy makers as they make development decisions. Many of the sites identified in this report have existing uses that would need to be demolished before new housing could be constructed.

For communities like Los Gatos that are largely built out and surrounded by other communities and undevelopable hillsides, redevelopment and densification is the only practical solution to providing a fair share of future housing for the San Francisco Bay Area. By its nature, such redevelopment is more costly and more time consuming than building new units on vacant land. To offset these constraints, higher densities are proposed in some areas. These higher densities act as a market incentive to offset the added cost and time required build new housing on redeveloped sites. Property owner interest will be pivotal for facilitating single-family site opportunities to add housing through construction of ADUs and use of SB 9 processes, which allow for up to four units on a property zoned for a single house.

Review of Previous Housing Element E

APPENDIX

Appendix E. Review of Previous Housing Element
JanuaryNovemberSeptember20232024 Appendix E E-1
E.1 Introduction
In order to effectively plan for the future, it is important to reflect back on the goals of the previous Housing Element and to identify those areas where progress was made and those areas where continued effort is needed.

State Housing Element guidelines require communities to evaluate their previous Housing Element according to the following criteria:
 Effectiveness of the Element.
 Progress on Implementation.
 Appropriateness in Goals, Objectives, and Policies.

E.2 Effectiveness of the Element
The Town of Los Gatos’ 2015 Housing Element identified the following goals:
 Expand the choice of housing opportunities for all economic segments of the community by supporting the development of affordable housing in a variety of types and sizes, including a mixture of ownership and rental housing.
 Maintain and/or adopt appropriate land use regulations and other development tools to encourage the development of affordable housing that is compatible with the neighborhood and the community.  Preserve existing residential opportunities, including the existing affordable housing stock.  Ensure that all persons have equal access to housing opportunities.  Retain and expand affordable housing opportunities for seniors.  Mitigate Town governmental constraints to affordable and special needs housing development.  Encourage residential construction that promotes green building and energy conservation practices.  Ensure that the Town has sufficient resources and takes appropriate measures to implement the Housing Element.
 Maintain the Town’s 2005 jobs-to-household ratio of 1.5 jobs per household.

In order to achieve these goals, the 2015 Housing Element listed a series of policies and programs. The policies covered a range of housing concerns, including appropriate zoning for lower and moderate-income households, assisting in developing affordable housing, removing governmental constraints, conserving the existing affordable housing stock, preventing the conversion of affordable units to market rate, and promoting equal housing opportunities for all persons. The policies comply with State housing law guidelines.

E.3 Progress on Implementation
To assess the Town’s progress on implementing the 2015 Housing Element, the following key areas were reviewed:
 Adopted Programs;
 Production of Housing;
 Preservation of “At Risk” Units; and
 Rehabilitation of Existing Units.

Each of these areas is discussed in detail below.

Overview of Adopted Programs
Table E-1 below identifies all of the actions the Town committed to in the 2015 Housing Element. The table also includes a description of the progress that was made during the 2015 to 2023 planning period. Where a program is recommended to be continued in the current Housing Element, that program appears in Section 10.6 of Chapter 10. In updating the Housing Element, the Town took a critical evaluation of the 2015 Housing Element

HCD Draft Revised Draft 2023-2031 Housing Element
E-2 Appendix E JanuaryNovemberSeptember March 20232024
programs. Programs that are considered routine functions are removed from the 2023-2031 Housing Element as specific housing programs. Housing programs that are intended to achieve similar objectives are combined to eliminate redundanc

Appendix E. Review of Previous Housing Element
E-3 Appendix E JanuaryNovemberSeptember March 20232024
Table E-1 Overview of Adopted Programs
No.

Programs
(The text provided in this column is a synopsis only; for complete program language refer to the 2015 Housing Element)
Achievements/Effectiveness Continue/Modify/Delete
Goal
HOU-1
Expand the choice of housing opportunities for all economic segments of the community by supporting the development of affordable housing in a variety of types and sizes, including a mixture of ownership and rental housing. Modify as Goal HE-1.

Policy
HOU-1.1
Develop and utilize all available housing funding resources in order to provide the maximum amount of affordable housing as feasible. Modify as Policy HE-2.1.

Policy
HOU-1.2
Work with nonprofit agencies and housing developers to plan and develop a mix of affordable housing opportunities in Los Gatos. Modify as Policy HE-2.9.

Actions/Implementation Programs

1.1 Continue to implement the Below Market Price (BMP) program and evaluate it annually to ensure it is not a constraint to development.

BMP Program has been implemented on all
residential projects that meet the criteria.

Modify as Implementation
Program NL.

1.2 Amend the Town Code to allow new deed restricted Accessory Dwelling Units (ADU) to be affordable to lower income households on non-conforming residential lots over 10,000 square feet and in the Hillside Residential Zone on sites that are larger than 5 acres.

Town Code has been amended to address
this. Delete.

1.3 Continue to provide up to a 100 percent density bonus for developments that include housing for elderly, handicapped, and/or very low and low-income households.

This is an incentive that has been available
to projects that meet the criteria. There
are still opportunities to fulfill this program
and a modified version of this program will
be continued.

Modify as Implementation
Program VR.

1.4 Using BMP in-lieu fees, implement the proposed programs and initiatives of the Town’s Affordable Housing Strategies to increase and preserve affordable housing, such as purchasing affordability covenants in existing apartments.

Use of BMP in-lieu fees will be considered
as opportunities arise and direction is
provided to utilize the Town’s BMP in-lieu
fees. There are still opportunities to fulfill
this program and a modified version of this
program will be continued.

Modify as Implementation
Program PT.

1.5 Hold a periodic outreach meeting with affordable housing developers to discuss the development of housing affordable to extremely low-income households.

The Town will consider incentives when
projects of this nature are proposed. There
are still opportunities to fulfill this program
and it is being continued but modified.

Modify as Implementation
Program SO.