Los Gatos City Council
June 4, 2024

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-37 Policy HE-1.6 Universal Design
Address the special housing needs of persons with disabilities through reasonable accommodation procedures, zoning provisions for supportive and group housing, homeowner accessibility grants, and by encouraging universal design.

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

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

Goal HE-2 Provide New Affordable Housing.

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

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

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

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

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

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

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

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

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

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

Policy HE-2.8 Equal Housing and Special Needs
Support the provision of permanent, affordable, and accessible housing that allows persons with special needs to live independent lives. For the purposes of this Housing Element “persons with special needs” include extremely low-income households, seniors, overcrowded and large-family AFFH
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ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-38 HCD Draft Revised 2023-2031 Housing Element May 2024 households, the homeless population, those in need of emergency shelter, youth aging out of foster care, female-headed or single-parent households, and persons with disabilities, including developmental challenges.

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

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

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

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

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

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

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

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

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

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

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

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

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ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-39 Goal HE-4 Improve the Existing Housing Stock.

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

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

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

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

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

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

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

Goal HE-5 Encourage Green Building and Energy Conservation.

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

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

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

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

Many programs that address housing access and affordability for lower income households are supported by the Town and its partners; however, many people who need these resources have trouble finding them. It is AFFH
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ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-40 HCD Draft Revised 2023-2031 Housing Element May 2024 important for the Town to proactively inform residents about housing needs and resources, particularly those related to Fair Housing issues.

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

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

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

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

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

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

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ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-41

10.6 Implementation Programs
Programs
A Developer Forum

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

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

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

Implementation Policies
HE-1.1 Adequate Sites
HE-1.2 Multi-family Housing Densities
HE-1.3 Infrastructure
HE-1.4 Housing Design
HE-1.5 Variety of Housing Choices
Responsible Department/Review Authority
Community Development Department
Timeframe
Annually provide focus group or Town Hall meeting
opportunities
Funding Source
None required
Quantified Objective
Facilitate four land divisions and/or lot line
adjustments
Performance Metric(s)
Number of subdivision applications entitled
C No Net Loss
Develop and implement an ongoing
formal evaluation procedure (project-byproject) of sites identified in the Site Implementation Policies
HE-1.1 Adequate Sites
HE-1.3 Infrastructure
HE-1.5 Variety of Housing Choice
Responsible Department/Review Authority

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-42 HCD Draft Revised 2023-2031 Housing Element May 2024 Programs
Inventory to maintain sufficient sites at
appropriate densities to accommodate
RHNA for lower income households. If an
approval of a development results in a
reduction of site capacity below the
residential capacity needed to
accommodate the remaining RHNA,
including for lower income households,
the Town will identify and zone sufficient
adequate sites at appropriate densities to
accommodate the remaining RHNA.

Community Development Department
Timeframe
Ongoing tracking as developments are approved
Funding Source
None required
Quantified Objective
Maintain RHNA capacity
Performance Metric(s)
Number of units and affordability level applied for;
number of units and affordability level entitled;
number of units and affordability level permitted;
number of units and affordability level completed
D Additional Housing Capacity for the
North Forty Specific Plan

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

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

See Implementation Program AQ and AR.

Amend the North Forty Specific Plan to
remove the housing unit cap. This
amendment will allow developments to
reach the maximum allowable density
plus the additional units due to density
bonus and other applicable regulations.

Amend the North 40 Specific Plan to
remove guest parking requirements and
modify development standards to facilitate
achieving maximum densities.

Implementation Policies
HE-1.1 Adequate Sites
HE-3.3 Efficient Development Processing
Responsible Department/Review Authority
Community Development Department
Timeframe
January 2025
Funding Source
None required
Quantified Objective
Facilitate the construction of 45 new homes for
lower-income households.

Performance Metric(s)
Number of affordable homeownership units entitled
and the number of units entitled for lower-income
Households
E Affordable Development on Town
Owned Property
Pursue opportunities to work with an
affordable housing developer or enter into
a public-private partnership to develop
affordable housing, targeting lowerincome households on Town owned property.

Implementation Policies
HE-1.1 Adequate Sites
HE-2.9 Public/Private Partnerships
Responsible Department/Review Authority
Town Manager
Timeframe
Ongoing effort

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-43 Programs
Funding Source
None required
Quantified Objective
The Town owns two properties that could be
suitable for affordable housing up to 20 units.

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

Implementation Policies
HE-3.3 Efficient Development Processing
Responsible Department/Review Authority
Community Development Department
Timeframe
Review and update regulations as appropriate at
biannual years
Funding Source
None required
Quantified Objective
Reduce processing time by five percent
Performance Metric(s)
Improve current permit processing time
G Study Detached Single-Family
Condominium Option
Study the development of a new floor
area ratio standard for multi-family
development when developed as
detached single-family condominium
units.

Implementation Policies
HE-1.5 Variety of Housing Choices
HE-2.7 Senior Housing
Responsible Department/Review Authority
Community Development Department
Timeframe
December 2024
Funding Source
None required
Quantified Objective
Increase the floor area ratio to promote higher
density housing development
Performance Metric(s)
The number of Planning applications submitted for
new multi-family development utilizing the new floor
area ratio standard
H Coordination with Water and Sewer
Providers
Implementation Policies
HE-1.3 Infrastructure

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-44 HCD Draft Revised 2023-2031 Housing Element May 2024 Programs
Deliver the adopted Housing Element to
the San Jose Water Company and the
West Valley Sanitation District so that
they can prioritize current and future
resources or services for housing
development that helps meet Los Gatos’
RHNA for lower income households.

Responsible Department/Review Authority
Community Development Department
Timeframe
Upon adoption of the Housing Element
Funding Source
None required
Quantified Objective
Deliver Housing Element
Performance Metric(s)
Delivery of Housing Element
I Senior Housing Resources
Provide financial assistance for health,
safety, emergency and accessibility home
repairs to low-income seniors and lowincome mobile homeowners through the Below Market Price Program funds,
subject to availability of Program funds.

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

Implementation Policies
HE-1.6 Universal Design
HE-2.7 Senior Housing
HE-2.8 Equal Housing and Special Needs
HE-6.1 Fair Housing
HE-6.2 Financial Assistance
HE-6.3 Housing for Persons with Special Needs
HE-6.4 Affordable Housing Awareness
Responsible Department/Review Authority
Responsible Department/Review Authority
Community Development Department and the
Town Council
Timeframe
Ongoing and annual effort
Update materials annually
Funding Source
Town Affordable Housing Funds
Quantified Objective
Maintain the existing housing stock by funding
three home repairs to lower income seniors
annually
Performance Metric(s)
Measure the number of units assisted versus the
need
J Small Multi-Unit Housing, “Missing
Middle”
The Housing Element supports the land
use goal of providing opportunities for
housing that can accommodate the
needs, preferences, and financial
capabilities of current and future residents
in terms of different housing types,
tenures, density, sizes, and costs.

Implementation Policies
HE-1.5 Variety of Housing Choices
HE-2.4 Rental Housing
HE-3.3 Efficient Development Processing
Responsible Department/Review Authority
Community Development Department
Timeframe
December 2024

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-45 Programs
Specifically, the Town aims to create
mixed residential neighborhoods through
new and innovative housing types that
meet the changing needs of Los Gatos
households and expand housing in a
variety of neighborhoods. These housing
types include, but are not limited to, single
dwelling units, multifamily dwelling units,
accessory dwelling units, small and micro
units, use of pre-fabricated homes, and
clustered housing/cottage housing. The
Town will also promote small multi-unit
housing that increases density. This
includes multi-family units or clustered
residential buildings that provide relatively
smaller, less expensive units within
existing neighborhoods.

Modify the Zoning Code to facilitate small
multi-unit housing in certain low and
medium density designations. This
includes creating mixed residential
neighborhoods through new and
innovative housing types that meet the
changing needs of Los Gatos households
and expand housing choices in a variety
of neighborhoods. Housing types include,
but are not limited to single dwelling units,
multifamily dwelling units, accessory
dwelling units, small and micro units, use
of prefabricated homes, and
clustered/cottage housing. The
modification of the Zoning Code to
facilitate the development of small multiunit housing will occur in a variety of neighborhoods throughout the Town
except for in the Very High Fire Hazard
Severity Zones, hillside residential zones,
and historic districts.

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

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

Permit processing times tend to be
Funding Source
None required
Quantified Objective
Increase the number of housing units, including the
combination of small multi-unit housing, religious
institutions, Junior Accessory Dwelling Unit (JADU),
and SB 10 by 150 units (including 30 of these units
as being affordable) over eight years with the goal
of achieving 100% of the units in low to medium
density designations and high median income
areas.

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-46 HCD Draft Revised 2023-2031 Housing Element May 2024 Programs
shorter than larger multi-family buildings
due to the low-rise nature of the
structures.

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

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

K Lot Consolidation
The Town will conduct outreach to
property owners in these areas to identify
meaningful incentives to facilitate lot
consolidation, lot assemblage and
redevelopment in mixed use and
commercial areas. Based on this
feedback, within two years of Housing
Element adoption, the Town will adopt the
development of a Lot Consolidation
Ordinance to include specific incentives
such as: flexible development standards
such as reduced setbacks, increased lot
coverage, increased heights, reduced
parking, reduced fees, and streamlined
permit processing through administrative
staff review. Upon adoption of the
Ordinance, the Town will work with
property owners that are receptive to lot
consolidation/lot assemblage to assist
them in facilitating the parcel merge
process in a streamlined and timely
manner.

Implementation Policies
HE-3.4 Lot Consolidation
Responsible Department/Review Authority
Community Development Department
Timeframe
June 2025
Funding Source
None required
Quantified Objective
Facilitate nine lot consolidations.

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

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-47 Programs
constraints based on the outcome of the
evaluation. The study will evaluate the
feasibility of requiring BMP’s for senior
assisted living, senior independent living,
and senior communities.

Town Affordable Housing Fund
Quantified Objective
Increase number of BMP units annually by five
units with a goal of achieving 30% of new units in
high median income areas
Performance Metric(s)
Complete study and implement policy actions
M Establish a Commercial Linkage Fee
Conduct a nexus study and amend the
Municipal Code to include a linkage fee if
appropriate. A commercial linkage fee is
an impact fee levied on commercial
development for the provision of
affordable housing. Before levying an
impact fee, the Town is required to
complete a nexus study that shows the
linkage between new development and
the increased demand for housing.

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

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

O Affordable Housing Development Implementation Policies HE-1.2 Multi-family Housing Densities

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-48 HCD Draft Revised 2023-2031 Housing Element May 2024 Programs
Provide incentives for affordable housing
development, including density bonus, fee
deferrals or reductions, and reduced fees
for studio units. The Town shall also
provide annual outreach to attract and
support affordable housing developers in
the Town, including developers of senior
housing, extremely low-, very low- and
low-income units, and permanent
supportive housing for persons with
disabilities and developmental disabilities.

The Town shall annually identify
development and housing opportunities.

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

HE-3.5 Development Impact and Permit Fees
HE-2.8 Equal Housing and Special Needs
HE-2.9 Public/Private Partnerships
HE-3.1 Regulatory Incentives for Affordable
Housing
Responsible Department/Review Authority
Community Development Department, Town
Council
Timeframe
Ongoing and annual effort
Reduce development impact fees by January 2026
Funding Source
Staff Time and the Below Market Price Housing Inlieu Fees Quantified Objective
 Facilitate the construction of 460 new homes
for moderate to lower-income households ( 100
for moderate, 190 for low, and 170 for verylow), including 30% in high median income areas
 Facilitate annual outreach to developers.

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

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

In existing and new rental developments,
the Town could provide a rehabilitation
loan or another form of subsidy to a rental
property owner in exchange for securing
affordability covenants on a percentage of
Implementation Policies
HE-2.1 Financial Resources
Responsible Department/Review Authority
Community Development Department, Town
Council
Timeframe
January 2026
Funding Source
Below Market Price Housing In-lieu Fees
Quantified Objective
Affordability covenants for three housing units with
BMP funding to increase the supply of affordable
housing per year
Performance Metric(s)
Number of affordability covenants

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-49 Programs
units and the owner’s agreement to
restrict rents on these units to levels that
would be affordable to very low- and lowincome households.

Q Accessory Dwelling Units
Facilitate ADU/JADU production with the
following efforts:
 Waive building fees when an ADU is
deed restricted for very low-and lowincome pursuant to Town Code (Section 29.10.320(a).
 Initiate a marketing program for
homeowners on the benefits of ADUs
and the availability of resources
(templates, cost calculators, technical
support) to support development.

Promote the use of Housing Choice
Vouchers (HCVs) and homesharing
(once established) to make the units
available to lower income
households.
 Collaborate with countywide efforts to
develop pre-approved ADU plans
suitable for Los Gatos, including
designs that are ADA accessible.
 Streamline the review and permitting
of ADU’s by publishing pre-approved
plans including plans that are ADAcompliant, which shall be posted on the Town’s website.
 Promote California Housing Finance
Agency (CHFA) ADU grants of
$40,000 available to qualified
homeowners for pre-development
costs.
 Proactively promote information made
available through the Santa Clara
County Planning Collaborative, a joint
initiative of all 16 jurisdictions in the
county on the Town’s website with
resources for interested property
owners.
 Actively apply for grant programs, as
funds are made available to assist
property owners in the construction of
ADU’s/JADU’s. Monitor funding
availability annually.
 Develop and adopt objective
standards to allow more than one (at
minimum two) JADUs.

Implementation Policies
HE-1.7 Infill Opportunities in Single-Family
Neighborhoods
HE-2.4 Rental Housing
HE-2.5 Pre-Approved Accessory Dwelling Units
HE-2.6 Promote Accessory Dwelling Unit
Construction
HE-2.7 Senior Housing
HE-3.1 Regulatory Incentives for Affordable
Housing
HE-3.3 Efficient Development Processing
HE-3.5 Development Impact and Permit Fees
Responsible Department/Review Authority
Community Development Department
Timeframe
 Initiate marketing program and coordinate
efforts on pre-approved ADU plans (2023) and
other resources and services (December 2025)
 Select at least three plans and conduct media
campaign to promote (December 2024)
 Annually monitor the production and
affordability of ADUs
 Amend the ADU Ordinance (January 2024)
 Monitor ADU/JADU production against
projection by July 2027 and develop strategies
to address any potential shortfall in meeting
RHNA by the end of 2027
Funding Source
Below Market Price Housing In-lieu Fees for
Waiving Building Fees and General Fund
Quantified Objective
 Facilitate construction of at least 200 ADUs or
JADUs with a goal to facilitate construction of
up to 350 ADUs or JADUs throughout the
Planning period with a goal of 5% of these
units being affordable to lower-income
households and 50% in single-family, high
median income neighborhoods
 Publish pre-approved ADU plans and
templates, including designs that address ADA
and senior housing needs
 Post pre-approved plans on Town website
 Use the Town’s social media, website, local
press, and community events to distribute
information

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-50 HCD Draft Revised 2023-2031 Housing Element May 2024 Programs
The Town’s ADU Ordinance goes beyond
the requirements of State law by allowing
a 10 percent increase in the floor area
ratio standards.

Annually monitor number of
ADU’s/JADU’s produced, affordability
levels. By July 2027, if the production of
ADU/JADU is falling short of the projected
trend, the Town will initiate developing
strategies (additional incentives, flexible
development standards, and/or identify
additional sites for housing development)
to accommodate a potential shortfall by
the end of 2027.

Amend the ADU Ordinance to comply
with State law.

Work with a nonprofit organization to
administer a homesharing program that
will expand beyond roommate matching,
by assisting homeowners in renting out
ADUs and JADUs, further serving
residents in the region with outreach for
potential tenants.
 Adopt objective standards to allow more than
one JADU per property by July 2025
 Facilitate construction of at least 10 JADUs in
low density neighborhoods
 Through a homesharing program, assist at
least 50 homeowners in renting out available
ADUs and JADUs, especially in high/higher
resource areas throughout the Planning period
Performance Metric(s)
Number of Building Permits issued; number of
ADU/JADUs rented at a rental rate affordable for
very low-and low-income households
R Density Bonus
Conduct a study to evaluate the existing
Density Bonus Ordinance and
recommend changes to increase the
number of units constructed. The study
will include an evaluation of the
implementation of the ordinance to date
and actual construction of affordable
housing units that utilized the Density
Bonus. Additional density and height
incentives beyond what the State requires
will be considered (i.e., fee reductions,
add free density of BMP units). The study
shall recommend improvements to the
Ordinance based on the outcome of the
evaluation.

Amend the Density Bonus Ordinance to
comply with State law.

Implementation Policies
HE-3.1 Regulatory Incentives for Affordable
Housing
HE-2.3 Mixed-Use Development
HE-2.8 Equal Housing and Special Needs
Responsible Department/Review Authority
Community Development Department
Timeframe
 Amend the Density Bonus Ordinance
(December 2024)
 Complete study by June 2026 and implement
recommended actions by December 2029
Funding Source
None required
Quantified Objective
Increase affordable housing units generated by an
amended Density Bonus Ordinance
Performance Metric(s)
Measure the number of affordable units that
received entitlements
S Congregational Land Overlay Zone Implementation Policies HE-3.1 Regulatory Incentives for Affordable
Housing

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-51 Programs
Expand site opportunities by allowing
affordable housing on religious sites and
through conducting outreach to owners
and operators of religious institutions to
raise awareness and encourage housing
proposals. Study new Congregational
Land Overlay to build upon what is
available through AB 1851 and AB 2244
and help congregations by connecting
them with affordable housing
development partners. If no application
for housing on a religious institution/faithbased site is received by December 2025, the Town will expand outreach efforts to
be conducted annually. This may include
direct mailings to faith-based sites
highlighting successful affordable housing
units on other faith-based sites, as well as
available Town resources and programs
to support such projects (e.g., Programs
N, P, T, AI, and AJ – Assist in securing
funding for affordable housing projects).

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

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

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

Research and pursue a homesharing
program, including research and
coordination with non-profit and other
organizations to assist with matching
tenants with existing homeowners to
increase matches in lower density
neighborhoods. The Town will publicize
and take other actions as necessary (e.g.,
facilitate presentations at the Los Gatos
Adult Recreation Center, etc.).

Implementation Policies
HE-2.3 Mixed-Use Development
HE-2.7 Senior Housing
HE-2.8 Equal Housing and Special Needs
HE-2.9 Public/Private Partnerships
Responsible Department/Review Authority
Community Development Department
Timeframe
Ongoing and annual effort to support nonprofit
affordable housing organizations.

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

Funding Source
None required
Quantified Objective
Meet with nonprofit affordable housing providers to
identify constraints and barriers
Performance Metric(s)
Develop incentives for affordable housing and
measure number of units using incentives
U Increased Range of Housing
Opportunities for the Homeless
Implementation Policies
HE-2.8 Equal Housing and Special Needs

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-52 HCD Draft Revised 2023-2031 Housing Element May 2024 Programs
Continue to support the County of Santa
Clara’s Continuum of Care plan, as well
as the “Housing 1000” campaign by
“Destination: Home” to provide housing
opportunities for homeless households,
including emergency shelter, transitional
housing, and permanent affordable
housing opportunities.

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

Performance Metric(s)
Number of units or bed nights provided,
V Housing Opportunities for Persons
Living with Disabilities
Support the provision of housing for the
disabled population, including persons
with developmental disabilities, through
several means, including:
 Review and revise the Reasonable
Accommodation procedure to
promote access to housing for
persons with disabilities, address
potential constraints including
subjective approval findings such as
“impact on surrounding uses”.
 Encouraging accessibility design
features to be incorporated in
development. Review development
regulations annually to remove
constraints.
 By-right zoning for licensed
residential care facilities (six or fewer
residents) in all residential zones, and
provisions for larger care facilities
(seven or more residents) in multifamily residential zones subject to a conditional use permit.
 Treatment of supportive and
transitional housing as a residential
use of property, and subject only to
those restrictions and processing
requirements that apply to other
residential dwellings of the same type
in the same zone.

Implementation
HE-1.6 Universal Design
HE-2.8 Equal Housing and Special Needs
HE-2.9 Public/Private Partnerships
HE-6.1 Fair Housing
HE-6.3 Housing for Persons with Special Needs
Responsible Department/Review Authority
Community Development Department
Timeframe
Complete by December 2024
Funding Source
None required
Quantified Objective
Zoning Code amendment to increase the number
of disabled persons housed by 90 units.

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

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-53 Programs
 Programs to facilitate affordable
housing, including Density Bonus and
Affordable Housing Overlay.
 Encouraging affordable housing
developers to integrate supportive
housing units, increasing project
competitiveness for Tax Credits and
other funding sources.
 Supporting the creation of ADUs in all
residential districts.

W Rental Dispute Resolution Program
Continue the administration of the Rental
Dispute Resolution Program and consider
revisions as necessary to make the
program as effective as possible in
protecting both tenants’ and landlords’
rights.

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

Performance Metric(s)
Measure the percentage of disputes resolved
annually
X Assistance for Persons with
Developmental Challenges
Work with local and/or regional partners
to provide rental assistance for persons
with developmental challenges. Efforts
will include the following:
 Work with the California Department
of Developmental Services local
Regional Center to identify the
housing needs specific to
developmentally challenged persons
residing in Los Gatos and assist in
identifying available housing that
meets those needs.
 Encourage qualifying Regional Center
clients residing in Los Gatos to apply
for appropriate rental assistance
programs.
 Identify outside funding sources, such
as regional or State programs, that
could provide rental assistance for
developmentally challenged persons
living in Los Gatos.

Implementation
HE-2.7 Senior Housing
HE-2.8 Equal Housing and Special Needs
HE-2.9 Public/Private Partnerships
Responsible Department/Review Authority
Community Development Department
Timeframe
Annually follow up on a periodic basis with service
providers to determine outcomes for referrals and
update referral process and timelines accordingly
2023-2031 period
Funding Source
None required
Quantified Objective
Provide rental assistance for persons with
disabilities
Performance Metric(s)
Measure percentage of persons helped versus the
number of requests

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-54 HCD Draft Revised 2023-2031 Housing Element May 2024 Programs
 Make referrals to non-profit service
providers with rental assistance or
rental voucher programs such as
West Valley Community Services and
the Housing Authority of Santa Clara
County.

Y Supportive Services for the Homeless
Continue to support community and
nonprofit organizations that provide
supportive services for homeless persons
in Los Gatos in part by continuing to fund
the Town's annual grant and
disseminating opportunities for other
agency funding to West Valley
Community Services (WVCS), in order to
support its Comprehensive Emergency
Assistance Program (CEAP).

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

Implementation
HE-2.3 Mixed-Use Development
HE-2.8 Equal Housing and Special Needs
Responsible Department/Review Authority
Town Manager
Timeframe
Ongoing and annual effort
Funding Source
Town of Los Gatos
Quantified Objective
Continue the Town’s support to provide funds to
WVCS for homeless persons services
Performance Metric(s)
The number of Town residents assisted through
WVCS
Z Stabilize Rents
Study and implement recommendations
with regard to the Town’s Rental Dispute
Mediation and Arbitration Ordinance 2128
to help further stabilize rents for long-term
residents.

Implementation
HE-2.3 Mixed-Use Development
HE-2.4 Rental Housing
HE-6.6 Rental Dispute Mediation and Arbitration
Ordinance
Responsible Department/Review Authority
Community Development Department
Timeframe
Complete study by January 2025 and implement
Municipal Code changes by June 2025
Funding Source
Below Market Price Housing In-lieu Fees
Quantified Objective
Implement improvement opportunities for the
Rental Dispute Mediation and Arbitration Ordinance
Performance Metric(s)
Measure the number of disputes resolved versus
unresolved
AA Reduce Parking Standards
Initiate a study and outreach, including
developers to make specific updates that
Implementation
HE-2.7 Senior Housing
HE-2.8 Equal Housing and Special Needs
HE-3.1 Regulatory Incentives for Affordable
Housing

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-55 Programs
would result amendments to the Municipal
Code, as follows :
 Align parking requirements with the
preparation of Objective Design
Standards.
 Reduce parking requirements near
transit.
 Remove guest parking requirements
for all residential and mixed-use
projects in all zones.
 Allow parking to be unbundled from
residential units.

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

Implementation
HE-3.1 Regulatory Incentives for Affordable
Housing
Responsible Department/Review Authority
Community Development Department
Timeframe
Implement General Plan and Municipal Code
changes by June 2024
Funding Source
None required
Quantified Objective
Amend the General Plan and Zoning Code to allow
for 100 percent affordable housing development in
Mixed-Use General Plan designations
Performance Metric(s)
Measure the number of mixed-use units entitled
annually
AC SB 35 Process Improvements
Develop an SB 35 checklist and written
procedures for processing SB 35
applications to ensure efficient and
complete application processing.

Implementation
HE-3.3 Efficient Development Processing
HE-3.1 Regulatory Incentives for Affordable
Housing
Responsible Department/Review Authority
Community Development Department
Timeframe
Implement by December 2023
Funding Source
Staff Time
Quantified Objective

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-56 HCD Draft Revised 2023-2031 Housing Element May 2024 Programs
Measure SB 35 applications processed per year
Performance Metric(s)
N/A
AD Low Barrier Navigation Centers
Amend the Zoning Code Definitions to
include the definition for “Low Barrier
Navigation Center” consistent with State
law. Allow at least two mixed-use zoning
districts to permit low barrier navigation
centers as a by-right use.

Implementation
HE-2.8 Equal Housing and Special Needs
Responsible Department/Review Authority
Community Development Department
Timeframe
Implement by December 2023
Funding Source
Staff Time
Quantified Objective
Zoning Code amendment to include the definition
for “Low Barrier Navigation Center” consistent with
State law
Performance Metric(s)
Zoning Code amendment
AE Fair Housing Law Education
Educate the community about landlords
and renters rights and responsibilities
under Fair Housing law, needs and
benefits of affordable housing, and
available resources in the Town by
posting information on the Town’s
website, social media posts and/or
brochures, distributing information
through the business licensing
recertification process, and posting fair
housing posters in Town Hall, the
community center and the library.

Implementation
HE-6.4 Affordable Housing Awareness
Responsible Department/Review Authority
Community Development Department, Finance
Department, California Department of
Developmental Services
Timeframe
Resources posted by end of January 2023
Funding Source
Staff Time
Quantified Objective
Add 50 new subscribers to the Notify me subscriber
list
Performance Metric(s)
Number of new subscribers
AF Transit Oriented Development
As part of the comprehensive Zoning
Code update, establish development
standards for transit-oriented
development located within existing
transit areas that promote sustainable
land use practices which reduce vehicle
Implementation
HE-2.11 Smart Growth
Responsible Department/Review Authority
Community Development Department
Timeframe
Implement Municipal Code changes by June 2025

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-57 Programs
trips and allow for mixed-use
developments as well as stand-alone
residential. In addition, the Town shall
provide for CEQA streamlining consistent
with the provisions of SB 375.

Funding Source
Staff Time
Quantified Objective
Zoning Code amendment to establish development
standards for transit-oriented development
Performance Metric(s)
Measure the number of mixed-use and stand-alone
residential units entitled within transit areas
AG Preserve “At-Risk” Affordable Housing
Units

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

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

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

Implementation
HE-2.4 Rental Housing
HE-4.1 Property and Housing Conditions
Responsible Department/Review Authority
Community Development Department
Timeframe
Ongoing and annual effort
Funding Source
None required
Quantified Objective
Zero loss of rental housing
Performance Metric(s)
Measure the loss of rental housing
AI Countywide Home Repair Programs
Continue to support countywide programs
(through Habitat for Humanity East
Bay/Silicon Valley, Rebuilding Together,
Implementation
HE-4.1 Property and Housing Conditions
HE-6.3 Housing for Persons with Special Needs
Responsible Department/Review Authority

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-58 HCD Draft Revised 2023-2031 Housing Element May 2024 Programs
Housing Trust of Santa Clara County,
etc.) that provide assistance with minor
home repairs and accessibility
improvements for lower income
households, including special needs
households.

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

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

Promote County programs through Town
website and social media accounts.

Community Development Department; County of
Santa Clara
Timeframe
Ongoing and annual effort
Update Town website to provide links to County
programs annually
Funding Source
None required
Quantified Objective
Three minor home repairs and/or accessibility
improvements annually for lower income
households, including special needs households
Performance Metric(s)
The number of homes that received assistance
compared to the number of homes needing
assistance
AJ Town Residential Rehabilitation
Program
Create a new program to assist lower
income homeowners, including senior and
disabled households, with funding for
home repairs and improvements. The
program could incentivize providing
grants for the following activities:
accessibility improvements; exterior or
interior home repair; repair of fencing
and/or landscaping; plumbing; exterior
painting; roof repair; and similar activities.

Implementation
HE-4.1 Property and Housing Conditions
HE-5.1 Green Building
Responsible Department/Review Authority
Community Development Department
Timeframe
December 2027
Funding Source
Below Market Price Housing In-lieu Fees
Quantified Objective
Provide rehabilitation to five low-income
homeowner units annually
Performance Metric(s)
Number of low-income homeowners assisted and
program created
AK Solar Energy
Continue to enforce State of California
Title 24 requirements for energy
conservation.

Implementation
HE-5.1 Green Building
HE-5.2 Solar Energy
Responsible Department/Review Authority

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-59 Programs
Continue to expedite solar panel
installation by requiring only ministerial
building permits.

Community Development Department
Timeframe
Ongoing and annual effort
Funding Source
None required
Quantified Objective
Increase solar energy use through ministerial
building permits
Performance Metric(s)
Number of solar permits issued a year
AL Town Housing Resources Guide
Continue to provide a guide to
developments that include affordable
housing units as part of the Housing
Resources Guide posted on the Town’s
website, and available at Town Hall,
Library, and other Town facilities.

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

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

Implementation
HE-6.1 Fair Housing
HE-6.2 Financial Assistance
HE-6.3 Housing for Persons with Special Needs
HE-6.4 Affordable Housing Awareness
Responsible Department/Review Authority
Community Development Department
Timeframe
Update materials annually
Funding Source
None required
Quantified Objective
Increase the Housing Resources Guide usage
Performance Metric(s)
Measure the number of persons accessing the
Town’s Housing Resources Guide on the website
AM Santa Clara County Fair Housing
Consortium
Support the efforts of the Santa Clara
County Fair Housing Consortium, as
follows.

Continue to make referrals through
Project Sentinel and provide updated fair
housing information on the Town’s
website and at public locations through
the Town, such as the Adult Recreation
Center, Library, Farmers’ Market and
public kiosks. Through an ongoing
partnership with Project Sentinel, a
member of the Consortium and the
Town’s service administrator for the
Implementation
HE-5.2 Solar Energy
HE-6.3 Housing for Persons with Special Needs
Responsible Department/Review Authority
Community Development Department
Timeframe
Ongoing and annual effort
Funding Source
None required
Quantified Objective
Zero displacement
Performance Metric(s)

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-60 HCD Draft Revised 2023-2031 Housing Element May 2024 Programs
Rental Dispute Resolution Program, Town
staff is able to attend the Consortiums
annual Fair Housing Symposium, receive
training, and disseminate fair housing
information (including how to contact
Consortium agencies for assistance) to
members of the public who contact the
Town about a potential fair housing
related matter.

Counsel 10 tenants annually on tenant/landlord
concerns to prevent displacement
AN Community Education Using a Variety
of Communication Methods
Provide education on the problems and
needs of affordable housing as a means
of changing negative attitudes towards
the provision of affordable housing.

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

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

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

Implementation
HE-1.5 Variety of Housing Choices
HE-1.7 Infill Opportunities in Single-Family
Neighborhoods
HE-6.1 Fair Housing
HE-6.4 Affordable Housing Awareness
Responsible Department/Review Authority
Community Development Department, California
Department of Developmental Services
Timeframe
Update materials quarterly
Funding Source
None required
Quantified Objective
Provide education on SB 9 and ADU’s.

Performance Metric(s)
Number of Building permits issued for ADUs and
SB 9 projects
AP Special Needs Housing

Implementation
HE-2.7 Senior Housing

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-61 Programs
Pursuant to recent changes in State law,
the Town’s Municipal Code may be
modified to better facilitate the provision
of a variety of housing types. These Code
revisions include:
 Amend Town Code to align with all
State requirements on the provision
of emergency shelters. Specifically:
- Expand the definition of
emergency shelters to include
interim housing options such as
low barrier navigation centers,
bridge housing, and respite and
recuperative care.
- Permit emergency shelters by
right without discretionary review
in the Commercial Industrial (LM)
zone.
- Amend parking standards for
emergency shelters from a ratio
based on the size of the structure
to a ratio based on the number of
shelter staff (per AB 139).
 Eliminate current spacing
requirements between shelters and
residentially zoned properties and
schools.
 Develop and adopt by- right
processing procedures for Low
Barrier Navigation Centers (per AB
101).
 Allow small employee housing (six or
fewer) in all zone districts where
single-family residential is permitted.
 Allow Transitional Housing and
Supportive Housing developments
by-right in all zoning districts that
permit residential uses (per SB 2)
 Develop a by-right, streamlined,
ministerial review of Supportive and
Transitional Housing developments
(per AB 2162).
 Permit by-right Permanent Supportive
Housing and Transitional Housing in
zones where multi-family and mixed
uses are permitted, including
nonresidential zones permitting multifamily uses (per Government Code Section 65651).
 Allow Employee Housing consisting
of up to 36 beds or 12 units in zones
that allow agricultural uses (per
HE-2.8 Equal Housing and Special Needs
HE-2.9 Public/Private Partnerships
HE-3.3 Efficient Development Processing
Responsible Department/Review Authority
Community Development Department
Timeframe
Amend Zoning Code by January 2024
Establish prioritize processing of special needs
housing by January 2028
Funding Source
None required
Quantified Objective
Amend the Zoning Code to remove barriers to
building special needs housing
Performance Metric(s)
Adopt Zoning Code amendments

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-62 HCD Draft Revised 2023-2031 Housing Element May 2024 Programs
Health and Safety Code Section
17000, et seq.).
 Allow for group homes of seven and
more by right in residential districts,
and to conform with HCD’s Group
Home Technical Advisory (Dec 2022).
 Modify the language of Municipal
Code Section 29.10.530(a) to remove
finding number 5 of the mandatory
criteria for granting a reasonable
accommodation request.

In addition, the Town will prioritize special
needs housing by allowing for reduced
processing times and streamlined
procedures for applicable zoning/land use
applications. Include preferential handling
of special needs populations in
management plans and regulatory
agreements of funded projects.

AQ Zoning Code Amendments
Amend the Zoning Code to comply with
State law and ensure adequate sites are
available to accommodate the identified
sites in the Sites Inventory. These Code
revisions include:
 Amend the Zoning Code to include a
Housing Element Overlay Zone
(HEOZ) to apply to the sites included
in the Site Inventory to modify the
development standards (i.e., density,
lot coverage, FAR, height) on those
sites. The Town will commit to
monitoring and evaluating the HEOZ
development standards and complete
first evaluation of said standards by
December 2026 and then annually
thereafter, including outreach with the
development community, and making
adjustments as necessary. If it is
determined that adjustments are
needed, they will be completed within
six months of the annual evaluation.

The amended HEOZ Ordinance is
projected to be adopted by the Town
Council in March of 2024.
 Clarify the text of the non-residential
zones regarding housing.
 Rezone the Caltrans Right-of-Way –
Site E3 from R:1:8 to R-M. Take
additionally steps to make the site
available for residential development,
including decertification, by the end of
Implementation
HE-1.1 Adequate Sites
HE-1.2 Multi-family Housing Densities
HE-2.11 Smart Growth
Responsible Department/Review Authority
Community Development Department
Timeframe
Complete rezonings by January 31, 2024, and
monitoring and evaluation of the HEOZ
developments standards by December 2026.

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

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-63 Programs
2026. If by 2027 the site has not
progressed to be available for
residential development in the
planning period, identify and add
additional sites, if necessary, by
2028.
 Amend the Accessory Dwelling Unit
Ordinance.
 Amend the Density Bonus Ordinance.
 Amend the Architecture and Site
considerations for a multi-family and
mixed-use project to make them
objective and provide certainty in
outcomes.
 Amend the Architecture and Site
findings for a multi-family and mixeduse project to make them objective and provide certainty in outcomes of
the application review. Specifically,
address Finding (4) relating to site
layout and Finding (6) relating to the
exterior architectural design of
buildings and structures. These
findings can be considered subjective
and open to interpretation.
 Amend the Conditional Use Permit
findings for a multi-family and mixeduse project to make them objective and provide certainty in outcomes of
the application review. Specifically,
address Finding (1) relating to use of
the property as desirable to the public
convenience and Finding (2) relating
to the integrity and character of the
zone. These findings can be
considered subjective and open to
interpretation.
 Amend the Zoning Code to clarify that
the Town will comply with Section
65852.3 of the Government Code to
allow the installation of manufactured
homes.
 Amend the Zoning Code to align the
private open space and the
community recreation space
requirements for a multi-family and
condominium project with the
Objective Design Standards.
 Amend the Zoning Code to align
parking requirements for a multifamily and condominium project with the preparation of the Objective
Design Standards.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-64 HCD Draft Revised 2023-2031 Housing Element May 2024 Programs
AR General Plan Amendment
Amend the General Plan to modify the
designation of 16492 Los Gatos
Boulevard and Parcel 532-07-086 from
Low Density Residential to Neighborhood
Commercial, modify the designation of the
Cal Trans Right-of-Way from Low Density
Residential to Medium Density
Residential, and establish new maximum
densities for the High Residential,
Medium Density Residential, Low Density
Residential, Mixed-Use, Neighborhood
Commercial, and Central Business
District land use designations to provide
for the development of housing for the
sites in the Site Inventory. See Program
AQ.

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

By-right approval without discretionary
review: Pursuant to State law, the
following types of sites used to fulfill the
Town’s lower income RHNA will be
subjected to by-right approval without
discretionary review pursuant to
Government Code section 65583.2(H)
and (I) when 20 percent or more of the
units are affordable to lower income
households:
 Rezone Sites: All sites that are to
be rezoned with the Housing
Element Overlay Zone (HEOZ) as
identified in Appendix D, given
that the rezoning occurs after the
statutory deadline of the Housing
Element (January 31, 2023).
 Reuse Sites: As identified in
Appendix D, sites that were used
in the 5th cycle Housing Element
to meet the RHNA will be rezoned
with the HEOZ.

Implementation
HE-1.1 Adequate Sites
HE-1.2 Multi-family Housing Densities
HE-2.11 Smart Growth
Responsible Department/Review Authority
Community Development Department
Timeframe
Complete General Plan amendments by January
31, 2024
Funding Source
General Plan Update Fund
Quantified Objective
Adopt General Plan amendments consistent with
the Housing Element timing.

Performance Metric(s)
Adopt General Plan amendments.

AS Provide Adequate Sites for Housing,
RHNA Rezoning, and Lower Income
Households on Nonvacant and Vacant
Sites Previously Identified
Rezone sites as identified within Appendix
D to accommodate the Town’s RHNA and
Implementation
HE-1.1 Adequate Sites
Responsible Department/Review Authority
Community Development Department
Timeframe

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-65 Programs
a 24 percent buffer to allow for
compliance with No Net Loss Provisions
of SB 166.

By-right approval without discretionary
review: Pursuant to State law, the
following types of sites used to fulfill the
Town’s lower income RHNA will be
subjected to by-right approval without
discretionary review pursuant to
Government Code section 65583.2(H)
and (I) when 20 percent or more of the
units are affordable to lower income
households:
 Rezone Sites: All sites that are to be
rezoned with the Housing Element
Overlay Zone (HEOZ) as identified in
Appendix D, given that the rezoning
occurs after the statutory deadline of
the Housing Element (January 31,
2023).
 Reuse Sites: As identified in
Appendix D, sites that were used in
the 5th cycle Housing Element to meet
the RHNA will be rezoned with the
HEOZ.

Rezone all sites in the Sites Inventory to increase
housing on nonvacant and vacant sites previously
identified by January 31, 2023.

Funding Source
General Plan Update Fund
Quantified Objective
The number of housing units entitled per year on
these sites
Performance Metric(s)
Rezone the reuse sites
AT Affirmative Marketing
The Town will work with affordable and
market rate housing developers to ensure
that affordable housing is affirmatively
marketed to households with
disproportionate housing needs, including
Hispanic and Black households who work
in and live outside of Los Gatos (e.g.,
materials in Spanish and English,
distributed through employers). The
Town will notify a broad representation of
the community to solicit ideas for housing
strategies when they are discussed at
Planning Commission or Town Council
meetings. Specific outreach activities
include:
 Maintain the Housing Element email
list and send public notices to all
interested public and non-profit
agencies and affected property
owners.
 Post notices at the Community
Development Department and at the
Town library with information on the
type and number of units proposed
Implementation
HE-6.4 Affordable Housing Awareness
Responsible Department/Review Authority
Community Development Department
Timeframe
As applications which propose new housing units
are submitted and available
Funding Source
General fund (staff time)
Quantified Objective
Number of marketing plans updated.

Performance Metric(s)
Affirmatively market all affordable housing
opportunities

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-66 HCD Draft Revised 2023-2031 Housing Element May 2024 Programs
for a project and their expected
availability.
 Publish notices in the local
newspaper with information on the
type and number of units proposed
for a project and their expected
availability.
 Post information and meeting
information on the Town’s website
and social media accounts with
information on the type and number
of units proposed for a project and
their expected availability.
 Provide notice to community groups
such as West Valley Community
Services with information on the type
and number of units proposed for a
project and their expected availability.

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

Implementation
HE-1.1 Adequate Sites
Responsible Department/Review Authority
Community Development Department
Timeframe
Adopt a policy by January 2024 and apply the
policy as applications on sites within the Sites
Inventory are received and processed
Funding Source
General fund (staff time)
Quantified Objective
New policy adopted
Performance Metric(s)
Measure the number of replacement housing units
entitled that are restricted to low-income
households
AV Senate Bill 9 Monitoring
Annually monitor the number of SB 9
entitlements produced. By July 2027, if the
production of SB 9 entitlements is falling
short of the projected trend, the Town will
initiate and develop strategies (additional
incentives or provide greater flexibility to
the development standards) to
accommodate a potential shortfall by the
end of 2027.

Based on objective criteria that are
consistent with recent SB 9 applications in
Implementation
HE-1.1 Adequate Sites
Responsible Department/Review Authority
Community Development Department
Timeframe
Evaluate effectiveness of SB 9 approvals every
year beginning in 2023; and identify additional
incentives and/or site capacity, if needed by 2027
Funding Source
General fund (staff time)

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-67 Programs
the Town, about 3,000 parcels can
potentially accommodate SB 9 units.

Given the number of SB 9 applications
received during 2023 (four two-unit
development and seven urban lot splits), a
projection of 12 SB 9 units annually is
considered conservative. The Town has
not utilized these potential SB 9 units to
meet its RHNA adequate sites
requirement.

The Town’s SB 9 Ordinance goes beyond
the requirements of State law by allowing a
10 percent increase in the floor area ratio
standards for an SB 9 project.

Quantified Objective
Prepare Annual Progress Report and issue 96 SB
9 units over the eight-year period
Performance Metric(s)
Number of issued SB 9 Building Permits.

AW Story Poles and Netting Policy
Update the Story Pole and Netting Policy
and create alternative options for
residential or mixed-use projects with
affordable housing to reduce the
associated costs of installing story poles,
by providing an option to provide visuals,
video rendering, or other visual methods
in place of story poles for all multi-family
and mixed-use projects to reduce
constrains/cost and increase approval
certainty.

Implementation
Policy HE-3.1 Regulatory Incentives for Affordable
Housing
Responsible Department/Review Authority
Community Development Department
Timeframe
Implement by March 2024, and evaluate
effectiveness of reduced requirements every year
beginning in 2025; and identify additional incentives
and/or site capacity, if needed, within six months of
need identification.

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

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

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-68 HCD Draft Revised 2023-2031 Housing Element May 2024 Programs
Performance Metric(s)
N/A
AY Housing Mobility
Housing mobility strategies consist of
removing barriers to housing in areas of
opportunity and strategically enhancing
access (Los Gatos is entirely highest
resource in terms of access to opportunity
and a concentrated area of affluence). To
improve housing mobility and promote
more housing choices and affordability
townwide, including in lower density
neighborhoods, the Town will employ a
suite of actions to expand housing
opportunities affordable to extremely low,
very low-, low-, and moderate-income
households. Actions and strategies
include:
 SB 9 – Monitor the Town’s SB 9
standards and amend standards to
facilitate SB 9 applications (e.g.,
duplexes in single-family zones) if the
Town is not on track to meet its SB 9
application goals during the planning
period. See Program AV.
 Rezoning for Small Multi-Unit
Housing, “Missing Middle” – Modify
the Zoning Code to facilitate small
multi-unit housing in certain low and
medium density designations. This
includes creating mixed residential
neighborhoods through new and
innovative housing types that meet
the changing needs of Los Gatos
households and expand housing
choices in a variety of neighborhoods.

Housing types include, but are not
limited to single dwelling units,
multifamily dwelling units, accessory
dwelling units, small and micro units,
use of prefabricated homes, and
clustered/cottage housing. The
modification of the Zoning Code to
facilitate the development of small
multi-unit housing will occur in a
variety of neighborhoods throughout
the Town except for in the Very High
Fire Hazard Severity Zones, hillside
residential zones, and historic
districts. See Program J.
 Housing on Town Sites – Enter into a
public-private partnership to develop
housing, targeting low-income
Implementation
Policy HE-1.5 Variety of Housing Choices
Policy HE-1.7 Infill Opportunities in Single-Family
Neighborhoods
Responsible Department/Review Authority
Community Development Department
Timeframe
Annually review overall progress and effectiveness
in April and include information in annual report to
HCD. If the Town is not on track to meet its 160
affordable housing unit goal for the 8-year RHNA
cycle by 2027 (i.e., 80 affordable units built or in
process by 2027), the Town will consider
alternative land use strategies and make necessary
amendments to zoning or other land use
documents to facilitate a variety of housing choices,
including but not limited to, strategies that
encourage missing middle zoning (small-scale
multi-unit projects), adaptive reuse, and allowing
additional ADUs and/or JADUs, within six months,
if sufficient progress toward this quantified objective is not being met.

Funding Source
General fund (staff time)
Quantified Objective
Provide 160 housing opportunities affordable to
lower income households by January 2031.

Performance Metric(s)
Townwide, but especially lower-density
neighborhoods.

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-69 Programs
households, on Town owned
properties. See Program E.
 Enhanced Inclusionary Housing –
Assess and amend the Town’s
inclusionary housing requirements to
better produce low-income units and
units for special needs groups
townwide. See Program L.
 Accessory Dwelling Units (ADUs) –
Encourage and streamline ADUs in
single-family neighborhoods by
preparing standardized ADU plans
with a variety of unit sizes and by
affirmatively marketing and outreach
to increase awareness and the
diversity of individuals residing in Los
Gatos. See Program Q.
 Junior ADUs – Develop and adopt
objective standards to allow more
than one (at minimum two) Junior
ADU per structure by July 2025. The
objective is to achieve at least 10
JADUs in lower-density
neighborhoods by January 2031.

See Program Q.
 Religious Institutional Sites – Expand
housing opportunities on all religious
institutional sites within the Town.

See Program S. Conduct outreach to
owners and operators of religious
institutions to raise awareness and
encourage housing proposals.

Increase affordable housing on
religious institution/faith-based site(s)
during the 2023-2031 planning period
by 25 units. If no application for
housing on a religious institution/faithbased site is received by December 2025, the Town will expand outreach
efforts to be conducted annually.

This may include direct mailings to
faith-based sites highlighting
successful affordable housing units
on other faith-based sites, as well as
available Town resources and
programs to support such projects
(e.g., Programs N, P, T, AI, AJ –
Assist in securing funding for
affordable housing projects).
 Homesharing – Research and pursue
a homesharing program, including
coordination with non-profits and
others to assist at least 50
homeowners in renting out available

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-70 HCD Draft Revised 2023-2031 Housing Element May 2024 Programs
ADUs and JADUs with tenants. The
Town will publicize and take other
actions as necessary (e.g., facilitate
presentations at the Los Gatos Adult
Recreation Center, etc.) at least
annually with the goal of five
opportunities per year. See Program
T.

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-71 The following action matrix includes the Town’s goals and actions to affirmatively further fair housing.

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

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

Annually Townwide
Meet with housing
developers
annually.

Program O.

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

Annually Townwide
Facilitate the
construction of 460
new homes for
moderate to lowerincome
households,
including 30% in
high median
income areas.

Program W.

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

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

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

Program AM.

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

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

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

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

Program X.

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

Annually Townwide Assist three
families annually.

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

Quarterly Townwide
Assist three lowincome families
annually.

Program AO.

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

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

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

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

Program AN. Use
a Varity of
Communication
Methods
Provide education on the
problems and needs of
affordable housing as a means
of changing negative attitudes.

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-72 HCD Draft Revised 2023-2031 Housing Element May 2024 Program Specific Commitment Timeline Geographic
Targeting
Eight-Year
Metric
Program AT.

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

Annually Townwide
Affirmatively
market all
affordable housing
Opportunities.

New Housing Opportunities in High Resource Areas – Medium Priority Program D.

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

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

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

Annually Townwide
Subsidize five
developments
which include
extremely lowincome
households.

Program O.

Affordable
Housing
Development
Provide incentives for affordable
housing development and Annually Townwide (all high resource areas) Facilitate the
construction of 460
new homes for
moderate to lowerincome
households (100
for moderate, 190
for low, and 170 for
very-low), including
30% in high
median income
areas.

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

Monitor affordability of ADUs
through communication with
applicants (form with intent to
rent).
2023-2031 Townwide (all high
resource areas)
Facilitate
construction of at
least 200 ADUs with
a goal to facilitate
construction of up to
350 ADUs or
JADUs, with a goal
of 5% of these units
being affordable to
low-income
households and
50% in singlefamily, high median
income
neighborhoods.

Program AB.

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

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

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

By January 2024
Townwide with
emphasis on tracts
with highest
median incomes,
including a variety
of low to medium
density
neighborhoods
Facilitate the
development of
150 units of small
multi-unit housing
over eight years
with the goal of
achieving 100% of
the units in low to
medium density,
and high median
income areas.

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-73 Program Specific Commitment Timeline Geographic
Targeting
Eight-Year
Metric
Program L. Below
Market Price
Program
Conduct a study to evaluate the
existing BMP Program and
recommend changes to the
program to increase the number
of units constructed.

By June 2025
Townwide with
emphasis on high
median income
areas
Increase number
of BMP units
annually by five
units (from 257
baseline) with a
goal of achieving
30% of new units
in high median
income areas.

Program V.

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

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

Townwide
Increase housing
for persons with
disabilities by 90
units.

Program AP.

Special Needs
Housing
Establish streamlined
procedures for special needs
housing.

Amend the Zoning Code to
remove barriers to building
special needs housing
By January 2028
By January 2024
Townwide
Adopt Zoning Cod
amendments to
facilitate the
construction of
units for special
needs populations.

Program X.

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

Annually Townwide
Provide rental
assistance for
persons with
disabilities.

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

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

Program T:

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

By December
2025; Annually
Townwide with
emphasis on lower
density, singlefamily
neighborhoods,
and high median
income
neighborhoods
Facilitate 5
matches per year.

Program AV:

Senate Bill 9
Monitoring
Annually monitor SB 9
entitlements and develop
strategies, e.g., more flexible
development standards to
accommodate a potential
shortfall, if necessary.

Annually monitor
and adopt
additional
incentives, if
needed by end of
2027
Townwide with
emphasis on lower
density, singlefamily
neighborhoods,
and high median
income
neighborhoods
Facilitate 96 SB 9
entitlements
Program AY.

Housing Mobility
To improve housing mobility,
promote more housing choices,
and affordability.

Annually Townwide
Provide 160
housing
opportunities to
lower income
households.

Place-based Strategies for Neighborhood Improvement – Medium Priority Program AI.

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-74 HCD Draft Revised 2023-2031 Housing Element May 2024 Program Specific Commitment Timeline Geographic
Targeting
Eight-Year
Metric
Program AJ.

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

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

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

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

Complete at least
three CIP projects
during the planning
period.

Tenant Protection and Anti-Displacement – Medium Priority Program Z.

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

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

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

Annually Townwide
Preserve
affordability of all
affordable units.

Program AU.

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

ITEM NO. 17.

10. Housing Element

10.7 Glossary and Acronyms
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-75 A
Accessible. The ability to accommodate everyone
regardless of ability or pre-existing condition.

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

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

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

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

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

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

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

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

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

C
California Environmental Quality Act (CEQA).

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

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-76 HCD Draft Revised 2023-2031 Housing Element May 2024 Development. The subdivision of land; construction
or alteration of structures, roads, utilities, and other facilities; installation of septic systems; grading
activities; depositing of refuse; disposal of any
material; dredging or mineral extraction, debris or fill materials; and the clearing of natural vegetation with
the exception of agricultural activities. This does not include routine repair and maintenance activities.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ITEM NO. 17.

10. Housing Element
May 2024 HCD Revised Draft 2023-2031 Housing Element 10-77 Lot Coverage. Lot coverage is the percentage of a
lot that is covered by all buildings compared to the
total area of the lot.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-78 HCD Draft Revised 2023-2031 Housing Element May 2024 public and private facilities needed to support the
land uses, phasing of development, standards for the
conservation, development, and use of natural
resources, and a program of implementation
measures, including financing measures.

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

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

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

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

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

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

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

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-79 List of Acronyms
AB Assembly Bill
ABAG Association of Bay Area Governments
ADA Americans with Disabilities Act
ADU Accessory dwelling unit
AFFH Affirmative Furthering Fair Housing
AHOZ Affordable Housing Overlay Zone
AMI Area Median Income
BMP Below Market Program
CBD Central Business District land use
designation
CC Community Commercial land use
designation
CD Community Design Element
CEQA California Environmental Quality Act
CMU Mixed-Use land use designation
CUP Conditional Use Permit
DFEH California Department of Fair
Employment in Housing
du/ac Dwelling units per acre
EIR Environmental Impact Report
FAR Floor area ratio
FFH Federal Fair Housing Act
HCD Department of Housing and Community
Development
HDR High Density Residential land use
designation
HDS&G Hillside Development Standards and
Guidelines
HEAB Housing Element Advisory Board
HR Hillside Residential land use designation
HUD Department of Housing and Urban
Development
LDR Low Density Residential land use
designation
LHP Landmark and Historic Preservation
Zone
LI Light Industrial land use designation
LID Low Impact Development
LU Land Use Element
MDR Medium Density Residential land use
designation
MTC Metropolitan Transportation
Commission
MU Mixed-Use land use designation
NFHA National Fair Housing Alliance
NF-SP North Forty Specific Plan
PD Planned Development
PS Public School Zone
RHNA Regional Housing Needs Allocation
RHND Regional Housing Needs Determination
RHM Mobile Home Residential
SB Senate Bill
WUI Wildland/Urban Interface
.

ITEM NO. 17.

Affirmatively Furthering Fair Housing Report A

APPENDIX

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-1
A.1 What is AFFH?
The State of California’s 2018 Assembly Bill (AB 686) requires that all public agencies in the state affirmatively further fair housing (AFFH) beginning January 1, 2019. Public agencies receiving funding from the U.S.

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

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

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

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

Analysis of the 5th Cycle Housing Element
Goals of the Previous Housing Element
Many of the goals, policies, and programs that were presented in the 5th Cycle Housing Element are still applicable to the current 6th Cycle Housing Element. Some of the goals, policies, and programs included in this Housing Element serve as a continuation of policies identified within the previous Housing Element; whereas, others are new and concentrate more on promoting AFFH. The following are a list of goals from the 5th Cycle Housing Element:
 Goal HOU-1: Expand the choice of housing opportunities for all economic segments of the community by supporting the development of affordable housing in a variety of types and sizes, including a mixture of ownership and rental housing.
 Goal HOU-2: Maintain and/or adopt appropriate land use regulations and other development tools to encourage the development of affordable housing that is compatible with the neighborhood and the community.
 Goal HOU-3: Preserve existing residential opportunities, including the existing affordable housing stock.
1 California Department of Housing and Community Development Guidance, 2021, page 9.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-2 Appendix A May 2024
 Goal HOU-4: Ensure that all persons have equal access to housing opportunities.  Goal HOU-5: Retain and expand affordable housing opportunities for seniors.  Goal HOU-6: Mitigate Town governmental constraints to affordable and special needs housing development.
 Goal HOU-7: Encourage residential construction that promotes green building and energy conservation practices.
 Goal HOU-8: Ensure that the Town has sufficient resources and takes appropriate measures to implement the Housing Element.
 Goal HOU-9: Maintain the Town’s 2005 jobs-to-household ratio of 1.5 jobs per household.

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

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

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

Meaningful Steps towards AFFH
The Town’s overarching goal of furthering AFFH and creating more housing opportunities has made a concentrated effort to assist the most vulnerable populations. These vulnerable populations include, but are not limited to: the elderly; large households; extremely low income households; individuals experiencing homelessness; and individuals with disabilities. Many of the programs identified in this 6th Cycle Housing Element are designed to create a measurable impact on the affordable housing options provided to the afore-mentioned populations. These policies include:
 Implementation Program I: Senior Housing Resources
 Implementation Program N: Funds for Development for Extremely Low Income (ELI) Households  Implementation Program AI: Countywide Home Repair Program  Implementation Program U: Increased Range of Housing Opportunities for the Homeless  Implementation Program V: Housing Opportunities for Persons Living with Disabilities  Implementation Program AP: Special Needs Housing
 Implementation Program X: Assistance for Persons with Developmental Challenges

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-3
 Implementation Program Y: Supportive Services for the Homeless  Implementation Program Z: Stabilize Rents
 Implementation Program AY: Housing Mobility
The Town of Los Gatos implements these programs through funding allocation or through partnerships with other local organizations and jurisdictions.

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

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

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

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

History of Segregation in the Region
This history of segregation in the region is important not only to understand how residential settlement patterns came about, but, more importantly, to explain differences in housing opportunity among residents today. In sum, not all residents had the ability to build housing wealth or achieve economic opportunity. This historically unequal playing field in part determines why residents have different housing needs today.

In addition to historical discriminatory practices that embedded segregation into living patterns throughout the Bay Area, it’s also necessary to recognize the historical impacts of colonization and genocide on Indigenous populations and how the effects of those atrocities are still being felt today. The original inhabitants of presentday San Mateo County are the Ramaytush Ohlone, who have “…lived on the San Francisco Peninsula for thousands of years and continue to live here as respectful stewards of the land”4. However, “[d]ue to the devastating policies and practices of a succession of explorers, missionaries, settlers, and various levels of government over the centuries since European expansion, the Ramaytush Ohlone lost the vast majority of their 2 Source: book The Color of Law: A Forgotten History of How Our Government Segregated America by Richard Rothstein, p 121. 3 Racial Segregation in the San Francisco Bay Area, Part 1 | Othering & Belonging Institute (berkeley.edu) 4 https://www.smcoe.org/for-communities/indigenous-people-of-san-mateo-county.html

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-4 Appendix A May 2024
population as well as their land”5. The lasting influence of these policies and practices have contributed directly to the disparate housing and economic outcomes collectively experienced by Native populations today6.

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

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

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

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

This section illustrates the demographic distribution of residents in Los Gatos and Santa Clara County compared to the Bay Area region.

These analyses offer important in-sight on patterns of segregation and integration as well as equitable access to opportunity for residents across the Bay Area. Primary findings from these comparative analyses are bulleted and provided before figures/maps.

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

Key differences between Santa Clara County and the Bay Area include:
 Los Gatos is far less diverse than surrounding cities and the county overall: of census tracts with nonWhite residents, groups comprise less than half of the total resident population. Saratoga and Cupertino follow different patterns with non-White residents comprising more than 60% of the population in particular tracts.
 Areas of Santa Clara County with the largest share of non-White residents include San Jose, Sunnyvale, and Santa Clara, all of which have census tracts where non-White residents comprise up to 100 percent of the total resident population.
 These trends are similar for the region overall though non-White groups are significantly more likely to live in San Francisco, Daly City, Palo Alto, San Leandro, Hayward, and Fremont. There are similar concentrations in South San Francisco and Redwood City. 5 https://www.smcoe.org/for-communities/indigenous-people-of-san-mateo-county.html 6 https://www.americanprogress.org/article/systemic-inequality-displacement-exclusion-segregation/

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-5
Figure A-1. Racial Demographics by Block Group, Los Gatos, 2020 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-6 Appendix A May 2024
Figure A-2 Regional Racial Demographics by Block Group, 2020 Source: California Department of Housing and Community Development AFFH Data Viewer

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-7
Figure A-3 shows census tracts in Los Gatos where Asian residents are the predominant population. As shown in the map, Los Gatos has no predominantly Asian census tracts. Comparatively, Saratoga has Asian majority census tracts with a sizeable gap between 10 percent and 50 percent.

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-8 Appendix A May 2024
In line with these trends, there are no census tracts in Los Gatos where Hispanic or Latino residents are the predominant population similar to census tracts surrounding communities (Figure A-4).

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

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-9
Figures A-5 and A-6 show racial segregation and integration patterns in 2010 and 2020 for Los Gatos and Santa Clara County.

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-10 Appendix A May 2024
Figure A-5. Racial Segregation/Integration by Census Tract, Los Gatos and Santa Clara County, 2010 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-11
Figure A-6. Racial Segregation/Integration by Census Tract, Los Gatos and Santa Clara County, 2020 Source: California Department of Housing and Community Development AFFH Data Viewer.

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

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-12 Appendix A May 2024
many banks used the grading system for mortgages and denied approval in areas with the lowest grade.7 These practices made it nearly impossible for individuals in these areas to transition to homeownership. In Santa Clara County, grades were largely assigned to neighborhoods in Santa Clara and San Jose with grades ranging between B (still desirable) and D (hazardous). Los Gatos was not formed when the HOLC maps were active and, as such, redlining grade maps do not exist.

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

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-13
Current patterns and trends of segregation and integration in Los Gatos, Santa Clara County, and the Bay Area are provided by race and ethnicity, disability status, median household income, and familial status in the following sections.

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

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

In 1839, El Rancho de Los Gatos was established by a Mexican land grant and was so named because of the large number of mountain lions in the area. Agriculture and timber harvesting were mainstays of the local economy. In 1854, James Alexander Forbes built a flour mill along Los Gatos Creek. In 1860, the first hotel was

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-14 Appendix A May 2024
opened to provide a stage stop on a toll road between San Jose and Santa Cruz. The railroad reached Los Gatos in 1878, catalyzing residential and commercial growth. By 1887, the population had grown to 1,500 and the Los Gatos community voted to incorporate.

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

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

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

A.4 Report Content and Organization
This Fair Housing Assessment follows the April 2021 State of California State Guidance for AFFH.

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

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

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

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

Section V. Contributing Factors and Fair Housing Action Plan identifies the primary factors contributing to fair housing challenges and the Plan for taking meaningful actions to improve access to housing and economic opportunity.

Appendices
 Map and Data packet, including Fair Housing Organizations in Santa Clara County mission, services, and contact information.
8 “Single-family zoning emerged and replaced race-based zoning as a tool for segregating communities by restricting more affordable housing options, such as apartments or condominiums.” Affirmatively Furthering Fair Housing: Guidance for All Public Entities and for Housing Elements (HCD: April 2021) p. 6, available at https://www.hcd.ca.gov/communitydevelopment/affh/docs/affh_document_final_4-27-2021.pdf

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Appendix A. AFFH Report
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 State Fair Housing Laws and Regulations, summary of key State laws and regulations related to mitigating housing discrimination and expanding housing choice.

A.5 Primary Findings
This section summarizes the primary findings from the Fair Housing Assessment for Los Gatos including the following sections: fair housing enforcement and outreach capacity, integration and segregation, access to opportunity, disparate housing needs, and contributing factors and the Town’s Fair Housing Action Plan.  Population growth trends in Los Gatos are significantly lower than the county and regional index rates.

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

Yet Los Gatos’ residents have grown more racially diverse since 2000 with the non-Hispanic white population declining by 14 percentage points and Asian residents increasing in population from eight percent to 15 percent in 2019.
 Conversely, the types of households in Los Gatos mirror the county and are similar to the Bay Area with 58 percent married couples (57 percent in Santa Clara County and 51 percent in the Bay Area). Household size is in line with the county, except for five or more person households, for which Los Gatos has a smaller share.
 Los Gatos has a higher share of high-income earners (greater than 100 percent AMI) than the county and Bay Area (65 percent versus 55 percent and 52 percent respectively). Accounting for race and ethnicity, Asian households are much more likely to comprise high income earners (72 percent), especially when compared to Black/African American and Hispanic households (50 percent and 46 percent, respectively).  In 2015, the income segregation in Los Gatos between lower-income residents and other residents was higher than the average value for Bay Area jurisdictions. Segregation also exists among racial groups, yet is slowly declining.
 Poverty rates are minimal but do vary across races and ethnicities with Hispanic residents experiencing the highest poverty rate (although still a very low six percent) and Black/African Americans the lowest (0.7 percent).
 The job to household ratio for Los Gatos tracks closely with Bay Area and is lower than Santa Clara County’s, indicating that Los Gatos is less of a commuter Town than surrounding jurisdictions with much higher job to household ratios. This differs, however, by wage, with jobs to household ratios much higher for low wage workers who cannot afford to live in the Town. Los Gatos has twice as many jobs as households for low wage jobs.
 Los Gatos’ housing opportunities are limited by pricing, and both rental and home values are higher than the county median. Eighty-three percent of houses are valued at more than one million dollars; Zillow reports Los Gatos’ market average value at more than three million dollars. The average value of homes in Los Gatos is 63 percent higher than the County’s 1.3-million-dollar average value. Sixty-three percent of rentals charge 2,000 dollars or more a month, compared to 56 percent in Santa Clara County. Los Gatos does not have any public housing and only a small portion of the Town contains any Housing Choice Voucher usage, a minimal 0-5 percent.
 Nearly three-quarters of the Town’s housing are single-family units.  Housing cost burden in Los Gatos is lower than nearby cities but differs by race and ethnicity, and by tenure (renters/owners). Asian households experience the lowest rates of cost burden (30 percent) in the Town, followed by non-Hispanic White households (31 percent). This is followed by Black/African American household (34 percent) and Hispanic households (37 percent). Other/Multiple Race households (45 percent) are the most likely to be cost burdened (45 percent). Owners experience cost burden at a lower rate (28 percent) than renters (42 percent).
 Mortgage denial rates vary little by race and ethnicity, with 55 percent to 65 percent of loans originated.

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

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students. Asian students experienced higher educational outcomes compared to other students, scoring

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

A.6 Contributing Factors and Fair Housing Issues
The disparities in housing choice and access to opportunity discussed above stem from historical actions in the broader region, socioeconomic factors that have limited employment and income growth among non-White and Hispanic residents, and a shortage of housing units built to accommodate growth.

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

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

The Town may lack sufficient education and outreach related to reasonable accommodations and ADA laws based on the proportion of complaints related to disability status. Further, while fair housing testing was conducted in the County, fair housing tests in Los Gatos may be insufficient for monitoring housing discrimination.
 To address this issue, the 6th cycle Housing Element includes several outreach efforts to affirmatively further fair housing, including targeted outreach and annual efforts.  Outcomes of meaningful actions related to fair housing include, but are not limited to, adding 50 subscribers to the Notify me subscriber list, counseling 10 tenants annually on tenant/landlord concerns, assisting three senior households annually through senior resources, and increasing ADU and SB 9 permit applications by 25 and 9, respectively.

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

Priority Level: High
Contributing factors:
 Since 2010, Los Gatos’ population has increased, while not producing the amount of housing units to match the population growth. This lack of production has exacerbated an already tight housing market.

The lack of production is due to land costs, construction costs, availability of land, availability of financing, duration of permitting process, cost of permitting process, and environmental constraints.  To address this issue, the 6th cycle Housing Element includes Implementation Program B: “Large Site Program” and Implementation Program D: “Additional Housing Capacity”, along with other implementation programs, as a means to increase affordable housing production.

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Appendix A. AFFH Report
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 Meaningful actions to affirmatively further fair housing outlined in this Housing Element specifically aim to facilitate the construction of 45 new homes for lower-income households (North Forty Specific Plan), subsidize five developments which include extremely low-income households, and facilitate up to 350 ADUs with affordability of five percent. The housing that was added in Los Gatos between 2015 and 2019 was largely priced for above moderate-income households. Only 1.5 percent of housing permits approved were for low- or very-low-income housing. The lack of production of low- or very-low-income housing units is due to high land costs, high construction costs, limited availability of land, limited availability of financing, duration of permitting process, cost of permitting process, and lack of incentives.  Under the 6th cycle Housing Element, the Town will improve the Below Market Price (BMP) Program by conducting a study to evaluate the existing BMP Program and recommend changes to the program to increase the number of units constructed. The Town aims to increase BMP units by five units annually.
 In addition to the actions and outcomes outlined above, the Town will implement Program O to facilitate the construction of 460 new homes for moderate to lower-income households Fair Housing Issue
Los Gatos’ lack of affordable housing has a disproportionate impact on low- and moderate-income households who are more likely to be households of color. As such, Los Gatos lacks racial and ethnic diversity relative to the County overall. Racial/ethnic minority populations are also more likely to experience housing problems, such as cost burden and overcrowding, and have reduced access to opportunities, such as employment opportunities and better environmental conditions, compared to White populations.

Priority Level: Medium
Contributing factors:
 Black or African American and Hispanic residents typically work lower wage jobs, stemming from historical employment discrimination and lack of access to quality educational environments. These jobs do not support the Town’s very high housing costs.
 Low wage jobs are necessary to support higher wage industries. Los Gatos’ employment growth has not been adequately supported by affordable housing development. As such, there are twice as many low wage jobs as residents in Los Gatos who work those jobs.  To address these particular contributing factors, the 6th cycle Housing Element includes Implementation Program AT: “Affirmative Marketing” to work with affordable and market rate housing developers to ensure that affordable housing is affirmatively marketed to households with disproportionate housing needs, including Hispanic and Black households who work in and live outside of Los Gatos (e.g., materials in Spanish and English, distributed through employers). The Town will notify a broad representation of the community to solicit ideas for housing strategies when they are discussed at Planning Commission or Town Council meetings.  Additional meaningful actions to promote housing mobility seek to facilitate the development of 150 units of small multi-unit housing (“missing middle”), initiate a marketing plan and coordinate efforts for HCVs and homesharing programs, facilitate five homesharing matches per year, and facilitate 96 SB 9 entitlements over eight-years.
 Los Gatos lacks proper outreach efforts for housing programs, services, and fair housing laws and regulations. Los Gatos is a high opportunity area with large White, owner, and moderate/above moderateincome household populations. Increasing outreach to communities outside of the Town about housing opportunities in Los Gatos may promote mixed income communities.

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 The Town will participate in housing outreach outside of the Town boundaries to the greatest extent possible. Outreach activities are further detailed in Section 10.6, Implementation Programs of this Housing Element. Specifically, the Town will annually affirmatively market all affordable housing opportunities through notices and flyers for school districts. Outreach activities are further detailed in Section 10.6, Implementation Programs of this Housing Element.

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

Priority Level: High
Contributing factors:
 Lack of affordable housing overall is due to the high percentage of above moderate rate single-family housing stock in Town.
 The Town will address this issue by allocating a percentage of the Town Affordable Housing (Below Market Price) Fund to subsidize housing for extremely low-income households as identified in Implementation Program N. The Town seeks to increase BMP units by five units annually from the 257 baseline.
 Segregation of the limited affordable housing in Town is predominately located in the central portion of Town due to a limited area of where multi-family dwelling units are permitted.  Past priorities for single-family residential land uses through planning and zoning efforts as well as historical restrictive covenants have contributed to the prevalence of RCAAs in the Town.  The Town will use “Affirmative Marketing” strategies, as described in Implementation Program ATI, to work with affordable and market rate housing developers to ensure that affordable housing is affirmatively marketed to households with disproportionate housing needs, including Hispanic and Black households who work in and live outside of Los Gatos (e.g., materials in Spanish and English, distributed through employers). The Town will also amend its Zoning Ordinance in order to increase the development of affordable housing.  The adoption of the North Forty Specific Plan by the Town Council in 2015 provided diversity in the housing stock for the Town. As described in Implementation Program D, the Town will amend the North Forty Specific Plan to allow for an increase in the density from 30 dwelling units per acre to 40 dwelling units per acre and will remove the housing unit cap.  Opportunities, including employment, environmental, economic, and housing may not be accessible to all residents, especially those in vulnerable populations.
 In addition to Program AT described above, Los Gatos will implement programs to facilitate the development of affordable housing, including special needs housing, to increase housing opportunities in the Town (Programs D, E, L, N, O, W). The Town will also serve vulnerable populations through Senior Housing Resources (Program I), Housing Opportunities for the Homeless (Program U), Assistance for Persons with Developmental Challenges (Program V), and Supportive Services for the Homeless (Program Y). The Town also aims to increase

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Appendix A. AFFH Report
May 2024 Appendix A A-19
transportation opportunities for new households through Program AF, Transit Oriented Development.
 In addition to actions to facilitate new affordable housing opportunities described previously, the Town has outlined place-based strategies for neighborhood improvement with the following metrics to develop better access to opportunities (environmental, housing, etc.). Specifically, the Town will complete three minor home repairs or accessibility improvements for lower income households annually, provide rehabilitation to five low-income homeowner units annually, and complete three projects related to public facilities and transportation infrastructure.

Fair Housing Issue
Los Gatos feeds to high performing schools, yet, except for Asian students, students of color cannot take advantage of these learning opportunities because they cannot afford to live in Los Gatos.

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

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

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

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

Local Knowledge and Other Relevant Factors
Housing opportunities in the Town are limited by pricing and both rental and home values. While the population of the Town has increased, the required number of housing units to match the population growth, as well as new

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A-20 Appendix A May 2024
affordable housing has not. Based on Town knowledge and working with service providers, the lack of production of affordable housing units is due to high land costs, high construction costs, limited availability of land, limited availability of financing, duration of permitting process, cost of permitting process, a high percentage of above moderate rate single-family housing stock in Town, and the overall lack of incentives available to affordable housing developers. This was also acknowledged when the Town Council discussed the Town’s 2022 through 2024 strategic priorities on January 24, 2023, and included affordable housing partnerships as a strategic priority for the Town. Additionally, based on Town knowledge and working with service providers, the Town’s outreach efforts for housing programs, services, and fair housing laws and regulations can be improved through implementation of the 6th cycle Housing Element to increase outreach to communities outside of the Town about future housing opportunities in Los Gatos.

Summary of Fair Housing Issues, Contributing Factors, and Meaningful Actions Table A-1 on the following page identified fair housing issues, contributing factors, relative priority, and meaningful actions drawn from the analysis of fair housing. Higher priority is given to factors that limit fair housing choice and/or negatively impact fair housing, per Government Code Section 65583(c)(10)(A)(iv). A detailed overview of actions included in Housing Element Programs that are aimed at affirmatively furthering fair housing is included in the Housing Resources section of this Housing Element.

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-21
Table A-1. Contributing Factors
Identified Fair Housing Issue Contributing Factor Action Priority Outreach and Enforcement
 Lack of adequate fair housing
testing, monitoring, or targeted
outreach.
 Program A: Developer Forum
 Program O: Affordable Housing Development
 Program W: Rental Dispute Resolution Program
 Program AE: Fair Housing Law Education
 Program AM: Santa Clara County Fair Housing
Consortium
 Program I. Senior Housing Resources
 Program X. Developmental Challenges
 Program AN. Use a Variety of Communication
Methods
 Program AO. Educate Single-Family Property
Owners Regarding In-Fill Housing Options
 Program AT. Affirmative Marketing
High
Integration and Segregation
(Outreach and Enforcement,
New Housing Opportunities in
High Resource Areas, and
Housing Mobility)
 Concentrated wealth and White
populations in the Town as
compared to the region.
 Past priorities for single-family
residential land uses and
historical restrictive covenants.
 Program O. Affordable Housing Development
 Program AM. Santa Clara County Fair Housing
Consortium
 Program AN. Use a Variety of Communication
Methods
 Program AT. Affirmative Marketing
 Program D. Additional Housing Capacity for
North Forty Specific Plan
 Program J. Small Multi-Unit “Missing Middle”
Housing
 Program L. Below Market Price Program
 Program AP. Special Needs Housing
 Program AY: Housing Mobility
High
Access to Opportunities (New
Housing Opportunities in High
Resource Areas)
 Lack of diverse housing stock
such as multifamily housing.
 Lack of affordable housing
overall due to high land costs,
high construction costs, limited
availability of land, limited
availability of financing,
duration of permitting process,
cost of permitting process, and
lack of incentives.
 Program D. Additional Housing Capacity for
North Forty Specific Plan
 Program N. Funds for Development for
Extremely Low Income (ELI) Households
 Program O. Affordable Housing Development
 Program Q. ADUs
 Program AB. Allow for 100 Percent Affordable
Residential Development in Mixed-Use General
Plan Designations
Medium
Disproportionate Housing
Needs (Housing Mobility and
Place-based Strategies for
Neighborhood Improvement)
 Lack of diverse housing stock
such as multifamily housing.
 Disproportionate need for
housing and assistance for
special needs populations.
 Program V. Housing Opportunities for Persons
Living with Disabilities
 Program AP. Special Needs Housing
 Program X. Assistance for Persons with
Developmental Challenges
 Program T: Nonprofit Affordable Housing
Providers
 Program AI. Countywide Home Repair Programs
 Program AJ. Residential Rehabilitation Program
 AFFH: CIP Projects
Medium

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HCD Draft Revised 2023-2031 Housing Element
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A.7 Fair Housing Enforcement and Outreach Capacity
This section discusses fair housing legal cases and inquiries, fair housing protections and enforcement, and outreach capacity. Figure A-8 provides a summary of fair housing complaints and inquiries in Los Gatos and the County.

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

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

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-23
Figure A-8 Fair Housing Complaints and Inquiries in Los Gatos and Santa Clara County Source: Root Policy Research
Outreach and capacity. Santa Clara County, including Los Gatos, has a number of organizations dedicated to assisting residents with legal services related to housing discrimination and general housing disputes. These organizations are listed in Figure I-1 of the map and data appendix.

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

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

Compliance with State law. Los Gatos is compliant with the following State laws that promote fair and affordable housing. The Town has not been alleged or found in violation of the following:
 Housing Accountability Act (Gov. Code. Section 65589.5) requiring adoption of a Housing Element and compliance with RHNA allocations;
10 Los-Gatos-Housing-Resources-Guide (losgatosca.gov)
11 https://www.losgatosca.gov/2604/Becoming-an-Inclusive-Community

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HCD Draft Revised 2023-2031 Housing Element
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 No Net Loss Law (Gov. Code Section 65863) requiring that adequate sites be maintained to accommodate unmet RHNA allocations;
 Least Cost Zoning Law (Gov. Code. Section 65913.1);
 Excessive Subdivision Standards Law (Gov. Code. Section 65913.2); and  Limits on Growth Controls Law (Gov. Code. Section 65589.5).

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

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

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

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

Additionally, Santa Clara County has a number of local resource and enforcement organizations:
 Project Sentinel: Assists with housing discrimination, mortgage foreclosures, rental issues, and more.  Housing and Economic Rights Advocates (HERA) provides legal and advocacy for vulnerable Californians facing discrimination and economic abuses.
 Bay Area Legal Aid engages in broad advocacy focused on helping low-income Bay Area residents lead stable lives, including housing stability.
 The Law Foundation of Silicon Valley provides legal advocacy for social change with a focus on finding stable homes for low-income residents.
 Senior Adults Legal Assistance is a law office dedicated to supporting elder residents obtain independent living.
12 https://www.dfeh.ca.gov/aboutdfeh/
13 https://www.dfeh.ca.gov/complaintprocess/

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Appendix A. AFFH Report
May 2024 Appendix A A-25
From 2013 to 2021, 391 fair housing complaints in Santa Clara County were filed with the U.S. Department of Housing and Urban Development (HUD) or Fair Housing Advocates of Northern California (FHANC). Most of the county’s valid complaints cited disability status as the bias. Of these complaints, 69 percent were considered valid and proceeded to actionable responses. Los Gatos had eight total Fair Housing and Equal Opportunity (FHEO) complaints and less than 0.5 FHEO inquiries. Figures A-9 and A-10 show the number of FHEO complaints in Los Gatos and the region overall.

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

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

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Appendix A. AFFH Report
May 2024 Appendix A A-27
Figure A-10. FHEO Inquiries, Bay Area Region, 2022
Source: California Department of Housing and Community Development AFFH Data Viewer.

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

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

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Appendix A. AFFH Report
May 2024 Appendix A A-29
Figure A-12. FHEO Cases, Bay Area Region, 2022
Source: California Department of Housing and Community Development AFFH Data Viewer.

Figure A-13 illustrates FHEO Cases of Disability Bias in Los Gatos and surrounding cities in 2020. As shown in the figure, Los Gatos and Santa Clara County experienced 40 percent to 65 percent disability bias in FHEO cases

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HCD Draft Revised 2023-2031 Housing Element
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during this time. This compares to less than 25 percent of FHEO complaints between 2013-2021, which may be indicative of a recent rise in a lack of accessible housing in the local housing market.

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

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Appendix A. AFFH Report
May 2024 Appendix A A-31
A.7 Existing Affordable Housing Assets
Publicly Assisted Housing. According to the California Department of Housing and Community Development AFFH Data Viewer (HCD data viewer), Los Gatos does not have any public housing buildings (Figure A-13).

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

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

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

Figure A-15 Public Housing Buildings, Los Gatos, 2021
Source: California Department of Housing and Community Development AFFH Data Viewer Very few residents in Los Gatos are voucher holders. The only census tract with available data show less than five percent of residents having a housing voucher (Figure A-16). These patterns could be related to the Town’s smaller population of low-income residents who need and quality for vouchers and or voucher discrimination.

Patterns of voucher discrimination correlate with the number of FHEO cases and inquiries for disability bias in Los Gatos.

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Appendix A. AFFH Report
May 2024 Appendix A A-33
Figure A-16 Housing Choice Vouchers by Census Tract, Los Gatos, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer Los Gatos, along with Saratoga, Cupertino, Sunnyvale, and Campbell have no emergency shelter housing available (Figure A-17). There are a few emergency shelters in San Jose and Santa Clara, but the region is generally limited in emergency shelter housing overall.

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HCD Draft Revised 2023-2031 Housing Element
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Figure A-17 Emergency Shelter Housing, Los Gatos, 2021
Source: California Department of Housing and Community Development AFFH Data Viewer Figure A-18 shows HUD’s Housing Inventory Count (HIC) for Los Gatos and surrounding areas. In 2021, Los Gatos and neighboring areas had up to 2,500 beds for special needs populations, persons experiencing homelessness, and or persons at-risk of homelessness. This is promising for Los Gatos given the high cost of housing across Los Gatos and the Bay Area.

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-35
Figure A-18 Housing Inventory Count, Los Gatos and Santa Clara County, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer

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HCD Draft Revised 2023-2031 Housing Element
A-36 Appendix A May 2024
A.8 Integration and Segregation
This section discusses integration and segregation of the population by protected classes including race and ethnicity, disability status, familial status, and income status. The section concludes with an analysis of racially and ethnically concentrated areas of poverty and affluence. Figure A-19 provides a summary of segregation and integration in Los Gatos and the County.

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

Segregation generally means a condition in which there is a high concentration of persons of a particular race, color, religion, sex, familial status, national origin, or having a disability or a type of disability in a particular geographic area when compared to a broader geographic area.” Figure A-19 Segregation and Integration, Los Gatos and Santa Clara County Source: Root Policy Research
Town

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-37
Race and Ethnicity
Los Gatos differs from the county and Bay Area overall for its relatively high proportion of residents identifying as non-Hispanic White (72 percent in Los Gatos compared to 32 percent in Santa Clara County) and small Hispanic population (eight percent in Los Gatos and 25 percent in the county) (Figure A-20).  Los Gatos’ proportion of Black/African American and Other and mixed-race residents is less proportional to the County and the Bay Area overall (Figure A-20).
 Los Gatos’ residents have grown more racially diverse since 2000 largely due to growth in Asian and Hispanic residents (Figure B-4).
 Older residents are less racially diverse than other age groups, with 87 percent of the population older than 65 years identifying as White compared to 77 percent of those aged 18 to 24 and 75 percent of children less than 18 years old. The main shift is the inclusion of more diverse populations in younger age groups, especially among Asian/API and Other/Multiple race residents (Figure B-3).  Poverty rates are very low for all residents including residents of color. Black/African American have the lowest poverty rate at less than 1 percent. The highest poverty rate was 6.1 percent among Hispanic residents (Figure B-13).

Figure A-20 Population by Race in the Region
Source: ABAG Housing Needs Data Workbook
Table A-2 shows racial/ethnic composition trends in the County and Los Gatos over the last decade. According to the 2017-2021 ACS, the White population represents 29.9 percent of the population in the County and 70.1 percent of the population in Los Gatos. In both the County and Town, the White population has decreased since the 2006-2010 ACS. During the 2006-2010 ACS, 36.6 percent of the population countywide and 80.9 percent of the population in the Town were White. In Los Gatos, the Asian population and population of a race not listed (“some other race”) saw the largest increases during this period. The population of two or more races and Hispanic Latino population also grew between 2010 and 2021. 15%
37%
27%
6%
72% 32% 39%
4%
4% 5%
8%
25% 24%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-38 Appendix A May 2024
Compared to neighboring jurisdictions, Los Gatos has a racial/ethnic minority population similar to Monte Sereno (29.8 percent), but significantly smaller than most cities including Campbell (51.7 percent), Cupertino (77.5 percent), San Jose (75.6 percent), Santa Clara (69.8 percent), and Saratoga (61 percent).

Table A-2. Change in Racial/Ethnic Composition – Santa Clara County and Los Gatos (2010-2021) Race/Ethnicity
Santa Clara County Los Gatos
2010 2021 % Change 2010 2021 % Change
White alone 36.6% 29.9% -9.3% 80.9% 70.1% 0.0%
Black or African American alone 2.4% 2.3% 7.8% 1.6% 0.8% -41.9% American Indian and Alaska Native alone 0.3% 0.2% -33.6% 0.0% 0.0% -- Asian alone 31.2% 37.9% 35.0% 9.5% 16.6% 101.6%
Native Hawaiian and Other Pacific Islander
alone

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

Geospatially, almost all census tracts in Los Gatos have a predominantly White population. Figures A-21 and A22 show the predominant population by census tract in Los Gatos and the Bay Area region for 2021. Los Gatos is predominantly White and comparatively less diverse than Santa Clara County and the Bay Area.

Key regional differences include the following:
 Communities in Saratoga, Cupertino, and San Jose are more diverse with larger populations of Asian and Hispanic or Latino residents.
 Hispanic or Latino residents are largely concentrated in East Palo Alto, Redwood City, and San Jose census tracts. These concentrations could be influenced by a range of factors particularly discriminatory redlining practices and affordability challenges.
 Very few census tracts in the region show Black or African American residents as the predominant population. These tracts are located north of South San Francisco and around San Leandro.

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-39
Figure A-21. Predominant Population by Census Tract, Los Gatos, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-40 Appendix A May 2024
Figure A-22. Predominant Populations in the Region by Census Tract, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-41
The Town’s diversity index has improved since 2010 due to changes in racial and ethnic diversity in the northern and eastern portions of Town, but constraints on development in the form of zoning restrictions and discretionary permit reviews have slowed this progress. The Association of Bay Area Governments (ABAG), working with UC Merced, created a 2021 report on segregation in Los Gatos that measured racial and income segregation within the community. This report, in its entirety, can be found in Appendix G. That report utilized several common measures of segregation:
 The Dissimilarity Index, or DI, is a common tool that measures segregation in a community. DI is an index that measures the degree to which two distinct groups are evenly distributed across a geographic area. DI represents the percentage of a group’s population that would have to move for each area in the county to have the same percentage of that group as the county overall. DI values range from zero to 100, where zero is perfect integration and 100 is complete segregation. Dissimilarity index values between zero and 39 generally indicate low segregation, values between 40 and 54 generally indicate moderate segregation, and values between 55 and 100 generally indicate a high level of segregation.  The isolation index is interpreted as the probability that a randomly drawn minority resident shares an area with a member of the same minority, it ranges from zero to 100 and higher values of isolation tend to indicate higher levels of segregation.

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-42 Appendix A May 2024
Figure A-22 Diversity Index by Block Group, Los Gatos, 2010 Source: California Department of Housing and Community Development AFFH Data Viewer.

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

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-43
Figure A-23. Diversity Index by Block Group, Los Gatos, 2018 Source: California Department of Housing and Community Development AFFH Data Viewer.

Compared with neighboring Monte Sereno, Los Gatos has a more varied neighborhood composition map and a more even dispersion of residents of varied races and ethnicities. Figure A-24 shows neighborhood segregation by census tract in Los Gatos in 2019. The majority of census tracts in the town are Asian-White though census tracts located in the western portions of Los Gatos have neighborhoods with White segregation. This is substantially different from segregation in Campbell’s neighborhoods which show most neighborhoods as segregated by three racial/ethnic groups.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-44 Appendix A May 2024
Figure A-24. Neighborhood Segregation by Census Tract, Los Gatos, 2019 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-45
Segregation by income increased between 2010 and 2015. In 2015, the income segregation in Los Gatos between lower-income residents and other residents was higher than the average value for Bay Area jurisdictions.

Disability Status
The share of the population living with at least one disability is nine percent in Los Gatos compared to eight percent in Santa Clara County (Figure A-25). Roughly a third of census tracts in Los Gatos contain 10 percent to 20 percent of persons with a disability, higher than most of the surrounding jurisdictions.

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

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

The change in populations of persons with disabilities between the 2008-2012 and 2017-2021 ACS is shown in Table A-3. The population experiencing a disability countywide increased from 7.7 percent during the 2012 ACS to 8.2 percent during the 2021 ACS. This can be attributed to the growing elderly population Statewide and in the County. During the 2008-2012 ACS, the population aged 65 and older represented 11.1 percent of the population compared to 13.6 percent during the 2017-2021 ACS. In comparison, the elderly population aged 65 and older currently represents 20.2 percent of the population in Los Gatos (2017-2021 ACS). During the 2008-2012 ACS, the Town had a similar population of elderly adults, representing 19 percent of the population. This is consistent with the Townwide trend of persons with disabilities shown in Table A-3.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-46 Appendix A May 2024
Table A-3. Change in Populations of Persons with Disabilities – County and Los Gatos (2012-2021) Subpopulation
Santa Clara County Los Gatos
2012 2021 2012 2021
Age
Under 5 years 0.5% 0.5% 0.0% 0.0%
5 to 17 years 2.9% 3.5% 1.9% 1.8%
18 to 64 years 5.4% 5.4% 4.3% 3.5%
65 years and over 33.7% 30.7% 27.9% 27.9%
Type
With a hearing difficulty 3.7% 2.3% 2.8% 2.8%
With a vision difficulty 3.9% 1.4% 3.0% 0.7%
With a cognitive difficulty 4.2% 3.3% 2.9% 3.1%
With an ambulatory difficulty 4.3% 4.3% 3.0% 4.6%
With a self-care difficulty 4.2% 2.0% 3.0% 2.3%
With an independent living difficulty 4.2% 4.5% 3.2% 4.9% Total Population 7.7% 8.2% 7.9% 7.8%
Source: 2008-2012 and 2017-2021 ACS (5-Year Estimates).

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

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

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-47
Figure A-26. Population with a Disability by Census Tract, Los Gatos, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-48 Appendix A May 2024
Figure A-27. Population with a Disability by Census Tract, Bay Area Region, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-49
Familial Status
Familial status can indicate specific housing needs and preferences. A larger number of non-family or single person households indicates a higher share of seniors living alone, young adults living alone or with roommates, and unmarried partners. Higher shares of nonfamily households indicate an increased need for one- and twobedroom units.

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

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

Trends in housing types in the County and Los Gatos are presented in Table A-4. Data differs slightly between the 2006-2010 and 2017-2021 ACS. For example, the 2006-2010 ACS does not include cohabiting couple households like the 2017-2021 ACS. However, these datasets can still be used to show the general trend over time. The proportion of married couple households in both the County and Town have increased during this period. The proportion of married couple households with children in Los Gatos has also increased while the proportion countywide has decreased. Populations of single-parent households, both male-headed and femaleheaded, have decreased in the County and Town. The County and Town have also seen increases in households with one or more people aged 65 and over during this period.

Table A-4. Change in Household Type – County and Los Gatos (2010-2021) Household Type
Santa Clara County Los Gatos
2010 2021 2010 2021
Married-couple household 54.9% 56.1% 55.7% 61.6%
With children of the householder under 18 years 27.9% 26.3% 24.3% 27.8% Cohabiting couple household -- 5.8% -- 3.9%
With children of the householder under 18 years -- 1.7% -- 1.3% Male householder, no spouse/partner present 5.3% 17.0% 3.1% 12.8% With children of the householder under 18 years 2.2% 1.1% 1.3% 0.6% Householder living alone -- 10.1% -- 10.1%
Female householder, no spouse/partner present 10.4% 21.1% 6.6% 21.7% With children of the householder under 18 years 5.3% 3.2% 4.8% 1.5% Householder living alone -- 10.6% -- 15.0%
Nonfamily households 29.4% -- 34.6% --
Householder living alone 23.0% -- 30.1% --
Households with one or more people under 18 years 38.4% 35.2% 31.0% 32.5% Households with one or more people 65 years and over 21.7% 27.2% 28.5% 35.2% Total households 596,747 646,847 12,064 13,036
Source: 2006-2010 and 2017-2021 ACS (5-Year Estimates).

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-50 Appendix A May 2024
Understanding household composition is critical for Los Gatos’ planning efforts as households with children often have unique needs compared to households without children. Figures A-28 and A-29 illustrate the distribution of households by the number of children in married couple households in Los Gatos and across the region.

Primary findings presented in the figures include:
 80-100 percent of all children in Los Gatos live in married couple households, similar to Saratoga and Cupertino.
 Campbell and San Jose follow different trends than Los Gatos with census tracts showing only 20 percent to 60 percent of children living in married couple households.  Regional trends are similar to that in Los Gatos and Santa Clara County though Redwood City has a lower percentage of children in these households.

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-51
Figure A-28. Children in Married Couple Households by Census Tract, Los Gatos, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-52 Appendix A May 2024
Figure A-29. Children in Married Couple Households, Bay Area Region, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-53
Figures A-30 and A-31 show the percent of children living with a female householder and no spouse in Los Gatos and the region. Less than 20 percent of children in Los Gatos live in a household with a female householder in line with Saratoga and Cupertino.

Regional differences are summarized below.
 San Jose has a comparatively larger number of children living in households with a female householder compared to surrounding communities though there is one census tract in Campbell where 60 percent to 80 percent of children are living in households with a female householder and no spouse.  For the region overall, female householders with children are largely concentrated around San Francisco, San Mateo, Redwood City, San Leandro, and Hayward.
 Concentrations in San Mateo and Redwood City could be related to comparatively lower housing prices as households with one earner are more likely to have lower incomes.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-54 Appendix A May 2024
Figure A-30. Children in Female Householder Households by Census Tract, Los Gatos, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-55
Figure A-31. Children in Female Householder Households by Census Tract, Bay Area Region, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-56 Appendix A May 2024
Figures A-32 and A-33 show the percentage of residents living with their spouse in Los Gatos and the region.

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

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-57
Figure A-32. Percent of Population Living with Spouse by Census Tract, Los Gatos, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-58 Appendix A May 2024
Figure A-33. Population Living with Spouse, Bay Area Region, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-59
Figures A-34 and A-35 present the distribution of residents living alone in Los Gatos and the region. Very few residents live alone in Los Gatos: the majority of the town shows less than 20 percent of residents living alone though there is one census tract were 20 percent to 40 percent of the population live alone.

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-60 Appendix A May 2024
Figure A-34. Percent of Population Living Alone by Census Tract, Los Gatos, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-61
Figure A-35. Percent of Population Living Alone in the Region, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-62 Appendix A May 2024
Household Income
Los Gatos’ households are higher-income than the county and Bay Area overall: 65 percent of Los Gatos households earn more than 100 percent of the AMI, compared to 55 percent for the county and 52 percent for the Bay Area (Appendix B, Figure B-11). In the Town, Hispanic or Latinx and Other Race or Multiple Races (Hispanic and Non-Hispanic) residents experience the highest rates of poverty, followed by White (Hispanic and NonHispanic) residents (Figure B-13).

Figures A-37 and A-38 show the distribution of households by median household income for 2021 in Los Gatos and the region overall. As shown in the figure below, the majority of Los Gatos households have incomes above $175,000. Households with incomes between $125,000 and $175,000 are concentrated in the town’s inner census tracts which could suggest patterns of income segregation. This could be related to lower housing prices in these areas. According to the 2017-2021 ACS, the median household income in Los Gatos is $166,642, compared to $140,258 in the County. The median household income in the Town is higher than the neighboring cities of Campbell ($130,171), San Jose ($125,075), and Santa Clara ($150,244), but lower than Cupertino ($199,778) Monte Sereno ($250,000+), and Saratoga ($224,179). Half or more than half of households in Cupertino, Monte Sereno, and Saratoga earn more than $200,000 compared to 42.9 percent in Los Gatos. The change median household incomes since 2010 for the County, Town, and neighboring cities is shown in Figure A36.

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

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

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-63
Primary findings from the comparative analysis are summarized below.  Income distribution in Los Gatos is similar to Cupertino though more diverse than Saratoga which does not have a concentration of households with median incomes below $175,000. This is particularly important for these cities as many households may need to leave the area for more affordable housing options, especially as housing prices continue to increase.
 San Jose is the only city in the region to have income diverse households. Census tracts in San Jose have households with median incomes at less than $55,000 with other tracts ranging from $55,000 to $120,000.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-64 Appendix A May 2024
Figure A-37. Median Income by Census Tract, Los Gatos, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-65
Figure A-38. Regional Median Income by Census Tract, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-66 Appendix A May 2024
The population of persons living below the poverty line is relatively low in Santa Clara County. According to the 2017-2021 ACS, only 6.7 percent of the County population is below the poverty level. Counties surrounding Santa Clara County, including Alameda County (8.9 percent), Merced County (19.4 percent), San Benito County (7.7 percent), Santa Cruz County (10.9 percent), and Stanislaus County (13.6 percent). San Mateo County has a poverty rate of only 6.2 percent.

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

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

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

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-67
Figure A-38. Poverty Status by Census Tract, Los Gatos, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-68 Appendix A May 2024
Figure A-39. Regional Poverty by Census Tract, 2021
Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-69
Racially or Ethnically Concentrated Areas of Poverty and Affluence.

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

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

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

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

For this study, the poverty threshold used to qualify a tract as an R/ECAP was three times the average census tract poverty rate countywide, or 22.5 percent. Similar to many jurisdictions in Santa Clara County, there are no census tracts in Los Gatos that qualify as R/ECAPs. R/ECAPs in the County are all located in San Jose (Figure A-40).
14 Goetz, E. G., Damiano, A., & Williams, R. A. (2019). Racially Concentrated Areas of Affluence: A Preliminary Investigation. Cityscape: A Journal of Policy Development and Research, 21(1), 99–124

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-70 Appendix A May 2024
Figure A-40 R/ECAPS, Santa Clara County
Source: California Department of Housing and Community Development AFFH Data Viewer

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-71
RCAAs. An RCAA is a census tract (1) with a percentage of its total White population that is 1.25 times higher than the average percentage of the COG region’s White population; and (2) has a median income that is 2 times higher than the COG Area Median Income (AMI). Generally, these are understood to be neighborhoods in which there are both high concentrations of non-Hispanic White households and high household income rates. As shown in Figure A-19, when comparing Los Gatos to the surrounding county and region, it is safe to speculate that the Town has more RCAAs than other communities, the county, and the region.

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

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

As discussed above, Los Gatos has a median income comparable to many neighboring cities. The median household income in the Town is lower than Cupertino, Monte Sereno, and Saratoga. Despite having a lower median household income, Los Gatos has a higher concentration of RCAA tracts compared to Cupertino and Saratoga. This is likely due to the racial/ethnic minority populations in these cities. Also discussed above, Saratoga and Cupertino have non-White populations of 61 percent and 77.5 percent, respectively, compared to only 29.9 percent in Los Gatos. While the proportion of White residents has decreased in the Town and County over the last decade, Los Gatos still has a significantly higher population of White residents (72 percent) compared to the County (32 percent) and the Bay Area (39 percent). As discussed above, 65 percent of Los Gatos households earn more than 100 percent of the AMI, compared to 55 percent for the county and 52 percent for the Bay Area
As shown in Figure A-22 above, most Los Gatos and Campbell tracts have non-Hispanic White majority populations while Saratoga, Cupertino, and Sunnyvale have Asian majority populations. Despite being comprised of tracts with median incomes similar to these jurisdictions (Figure A-38), Los Gatos has more RCAAs. As mentioned above, this is likely due to the larger White populations in Los Gatos. However, concentrations of RCAAs in Los Gatos are similar to other jurisdictions west of the 101 Freeway, stretching from the west side of Gilroy to Pacifica. Jurisdictions along the 85 and 280 Highways, from Los Gatos to Burlingame (San Mateo County) are also comprised of mostly TCAC highest resource tract (Figure A-45).

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

All RCAA tracts are also TCAC highest resource areas. RCAA tracts do not correlate with a specific pattern of cost burdened renters or owners. Tracts that are considered RCAAs in Los Gatos have populations of overpaying renters ranging from less than 20 percent to 60 percent and overpaying owners ranging from 20 percent to 60 percent. Most tracts in the Town have populations of overcrowded households representing less than 5 percent of the total households in the respective tract. According to the HCD AFFH Data Viewer 2.0, there is one tract in Los Gatos where more than 5 percent of households are overcrowded (tract 5072.03, 5.1% overcrowded). However, this tract is also categorized as an RCAA. There is also one tract in the Town (tract 5068.01) where 2.7 percent of households lack complete plumbing facilities and 6.1 percent of households lack complete kitchen facilities. Less than 2 percent of households in the remaining tracts lack complete plumbing or kitchen facilities. However, this tract is also still considered an RCAA. Further, none of the RCAA tracts are categorized as sensitive communities at risk of displacement.

According to the HCD AFFH Data Viewer 2.0, there are three subsidized housing projects in Los Gatos. One has 49 affordable units and is located in tract 5068.01, which is considered an RCAA. The other affordable projects, Villa Vasona (105 affordable units for seniors/persons with disabilities) and Open Doors (64 affordable units), are

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in tract 5067.03, the only tract in Los Gatos that is not considered an RCAA. This tract, and the areas along State Route 17, have higher concentrations of areas zoned for multi-family housing. Nearly all of the areas in the central and eastern areas of the Town are zoned for single-family residential uses. The Town’s Zoning Map is presented in Figure A-43.

As discussed previously, Los Gatos’ historic land use patterns allowing for predominantly single-family housing around a downtown core are discriminatory by nature. The Town’s land use and zoning policies have traditionally limited housing types allowed in the Town to medium to low density residential, favoring single-family detached projects. As such, Los Gatos has fewer multi-family units that tend to be more suitable for households earning moderate or lower incomes. These zoning and historic land use trends have directly impacted current RCAA trends in the Town. Additionally, racially restrictive covenants and property deed restrictions were popular in the 1920s. Though no longer in effect, these covenants have lasting impacts on the racial and ethnic makeup of the Town. However, the effect of the racial covenants has diminished with time, and the Town has gone from approximately 86 percent White in 2000 to approximately 72 percent White in 2020. The increasing diversity of the Town indicates that impacts of racial covenants are decreasing and the primary factors limiting housing mobility and choice in the Town currently are household wealth, low density zoning, and high housing costs.

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

Table A-5. Los Gatos RCAA Tracts and Other Fair Housing Factors RCAA Tract
TCAC Composite
Score
Median Household
Income
Predominant
Population
RCAA?
5068.01 Highest Resource $164,195 Non-Hispanic White Yes 5068.04 Highest Resource $172,222 Non-Hispanic White Yes 5069 Highest Resource $188,585 Non-Hispanic White Yes
5070.02 Highest Resource $250,001 Non-Hispanic White Yes 5070.03 Highest Resource $221,442 Non-Hispanic White Yes 5070.04 Highest Resource $168,015 Non-Hispanic White Yes 5071 Highest Resource $153,125 Non-Hispanic White Yes
5072.03 Highest Resource $179,006 Non-Hispanic White Yes 5072.05 Highest Resource $186,250 Non-Hispanic White Yes Source: California Department of Housing and Community Development AFFH Data Viewer 2.0.

This documents that Los Gatos is largely an area of affluence and does not have any areas of concentrated poverty. Much of the root causes associated with this demographic trend are related to the type of housing stock that is available in Los Gatos, which has typically consisted of single-family detached homes and lower density multi-family development. Past strategies to mitigate the RCAA trend in the Town have focused mainly on promoting the development of affordable housing, this includes the North Forty Specific Plan Area. The first phase of the North Forty has been mostly developed and was successful in adding affordable senior housing units to the Town’s housing stock. However, these strategies should be expanded upon to better promote and facilitate affordable housing. Further, because the RCAA designations in Los Gatos relate mainly to the concentration of White residents, outreach for affordable housing opportunities should be expanded to include communities beyond the Town’s boundaries to promote more inclusive neighborhoods. In order to address and remedy these root causes that have led to a historic pattern of exclusion, the Town’s 2023-2031 Housing Element sets forth concrete actions to address longstanding fair housing issues. The Town will create a new Housing

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Element Overlay Zone, allowing for increased development standards such as density, height, and floor area that will increase the diversity of housing types and increase affordable housing supply. In addition, the Town will implement multiple programs that will support affordable housing development, including modification to the Town’s Inclusionary Ordinance and amendment of the Accessory Dwelling Unit Ordinance and State Density Bonus Ordinance. The Town is implementing programs that will increase housing diversity in its single-family neighborhood areas, including promotion of ADUs and allowance for lot splits and duplexes in accordance with SB 9. Implementation Programs AO and AV are proposed to monitor units produced through SB 9. The SB 9 programs, along with the Sites Inventory seek to integrate affordable units into these concentrated areas of affluence.

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

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Figure A-42. Regional RCAAs, 2019
Source: California Department of Housing and Community Development AFFH Data Viewer.

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Figure A-43. Town of Los Gatos Zoning Map

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A.9 Access to Opportunity
This section discusses disparities in access to opportunity among protected classes including access to quality education, employment, and environment. Figure A-43 provides a summary of access to opportunity demographics in Los Gatos and the County.

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

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

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

HUD Opportunity Indicator scores for Santa Clara County are shown in Table A-6. Opportunity Indicator scores are calculated based on race/ethnicity and poverty status. In the County, the non-Hispanic White population, regardless of poverty status, received the highest index scores for low poverty, school proficiency, labor market, and jobs proximity. This indicates that the non-Hispanic White population countywide has the lowest exposure to poverty, best access to higher quality school systems, highest labor force participation, and best access to employment opportunities compared to other racial/ethnic groups. Of the total population, Black residents are most likely to utilize public transit and have lower transportation costs. The Asian/Pacific Islander community scored highest for environmental health. Based on County HUD Opportunity Indicators, the Hispanic community has the highest exposure to poverty, lower quality school systems, lowest labor force participation, and poorest environmental quality compared to other racial/ethnic groups

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Table A-6. HUD Opportunity Indicators by Race/Ethnicity – Santa Clara County (2020) Low
Poverty
School
Prof.

Labor
Market
Transit
Low
Transp.

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

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

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

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

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

Figures A-44 and A-45 show the TCAC Opportunity Score for Los Gatos and the region in 2023. Los Gatos is scored as an area with the highest resources, similar to surrounding areas.

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

These patterns are likely related to the median household incomes in the region: areas with lower resources are more likely to have lower incomes than households earning over $175,000 in Los Gatos and neighboring communities.

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Figure A-44 TCAC Opportunity Areas Composite Score by Census Tract, Los Gatos, 2023 Source: California Department of Housing and Community Development AFFH Data Viewer.

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

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Figure A-46 illustrates the population living in high resource areas by race in Los Gatos.

Figure A-46 Population Living in High Resource Areas by Race Source: ABAG Housing Needs Data Workbook, California Tax Credit Allocation Committee (TCAC)/California Housing and Community Development (HCD), Opportunity Maps (2020); U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B03002 Economic Opportunity
Economic outcomes are an important indicator in identifying economic disparities including job access and career development (among others). This section provides employment and job growth, economic opportunity scores for Los Gatos and the region as well as job proximity analyses.

The job to household ratio for Los Gatos is in line with the Bay Area but lower than Santa Clara County’s (Appendix B, Figure B-8), indicating that Los Gatos is less of a commuter town than surrounding jurisdictions with much higher job to household ratios. This differs, however, by wage (Figure B-7), with jobs to household ratios much higher for low wage workers who cannot afford to live in the Town. Los Gatos has twice as many jobs as workers for low wage jobs.
 Notably, Los Gatos had 19,843 jobs in 2018 compared to 14,573 job holders (Appendix B, Figure B-5), indicating a healthy job market for local residents and a need for in-commuting to fill the unoccupied jobs.  Most jobs in Los Gatos are in Financial and Professional Services and Health and Educational Services .  Unemployment in Los Gatos is five percent, below the county and area averages (Appendix B, Figure B10).

Similar to the resource opportunity map, Figure A-47 shows a concentration of economic opportunities in Saratoga and Cupertino. Opportunity is also concentrated in Los Gatos, though there are some areas with less positive economic outcomes than other areas in the town. However, the area generally benefits from positive economic opportunity, in contrast to San Jose, which showcases large economic opportunity disparity. 16%
70%
9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Low Resource
or High
Segregation
and Poverty
Area
Moderate
Resource Area
High/Highest
Resource Area Percent of PopulationHispanic or Latinx
Other Race or Multiple
Races, Non-Hispanic
White, Non-Hispanic
Black or African American,
Non-Hispanic
Asian / API, Non-Hispanic
American Indian or Alaska
Native, Non-Hispanic

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Key differences between regional trends and Santa Clara County are summarized below.  While many cities in Santa Clara County have positive economic outcomes, San Jose has a large concentration in the middle of the city where residents have less positive economic outcomes.  Sunnyvale, Cupertino, and Saratoga residents are more likely than other county and regional residents to have the most positive economic outcomes which is likely related to higher household incomes in these areas.
 For the region overall, less positive economic outcomes are concentrated near San Leandro, Redwood City, Vallejo, Concord, Livermore, Gilroy, Antioch, and Watsonville. This could be related to numerous factors including job proximity, jobs available in the area, and or less resources available for economic development.
 Varying degrees of economic opportunity scores suggest disparities in accessing employment. Los Gatos and other cities located in Santa Clara County will need to address these disparities through policies and programs focusing on the economic development for lower income households.

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Figure A-47 COG Geography TCAC/HDC Opportunity Map – Economic Score 2023 Source: California Department of Housing and Community Development AFFH Data Viewer.

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Figure A-48. Regional COG Geography TCAC/HDC Opportunity Map – Economic Score, 2023 Source: California Department of Housing and Community Development AFFH Data Viewer.

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Job proximity is one of the most important indicators of equal economic opportunity. Based on the economic opportunity score illustrated above, Figure A-49 is unsurprising. Jobs accessible by transit lines are concentrated in San Jose, Sunnyvale and parts of Santa Clara and Campbell, all of which have larger transit systems for residents. For the areas without data, Saratoga and Los Gatos have a comparatively smaller share of jobs accessible to residents by transit rides less than 45 minutes long. These findings are presented in Figure A-49 along with a regional analysis in Figure A-50.

Key similarities and differences are outlined below.
 In Santa Clara County, Sunnyvale, Campbell, San Jose, and communities located east of Los Gatos have the largest number of jobs accessible by a 45-minute transit ride. Residents living near Almaden Quicksilver County Park have substantially few job opportunities accessible by transit.  In the region, jobs accessible by transit are mainly concentrated in San Francisco, Oakland, Daly City, and communities located south of Palo Alto. This is likely the result of more transit systems available to residents as these are larger cities than that in Santa Clara County with more job opportunities concentrated where residents live.
 There are fewer jobs accessible in the northern parts of the region specifically in Vallejo, Stockton, Livermore, and Salinas though this is likely due to being more remote from areas with high concentrations of job opportunities for workers.

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Figure A-49. Jobs Within a 45 Minute Transit Ride by Block Group, Los Gatos, 2018 Source: California Department of Housing and Community Development AFFH Data Viewer.

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

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Expanding on the above analyses, Figures A-51 and A-52 show the number of jobs accessible by a 45-minute drive in Los Gatos and the region.

Primary findings include:
 Los Gatos and Saratoga have fewer jobs available to residents that are accessible by a 45-minute drive than other cities in Santa Clara County suggesting that residents in these cities have long commutes and or do not have equal access to a wide range of jobs located elsewhere.  Sunnyvale, Santa Clara, Campbell, and San Jose (in part) have the largest concentration of jobs accessible within a 45 minute drive. Mountain View and Cupertino follow similar patterns as well.  Regional patterns are similar to that shown above with the greatest concentration of jobs located in San Francisco, Oakland, San Leandro, San Mateo, and communities around Fremont.

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Figure A-41 Jobs Within a 45 Minute Drive by Block Group, Los Gatos, 2018 Source: California Department of Housing and Community Development AFFH Data Viewer.

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Figure A-42. Regional Jobs Within a 45 Minute Drive by Block Group, 2018 Source: California Department of Housing and Community Development AFFH Data Viewer.

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

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

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

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

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

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Figure A-43. TCAC Opportunity Areas Education Score by Census Tract, Los Gatos, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

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Transportation
Transportation is heavily linked with housing choice opportunity as well as equal access to employment and quality education. High quality and accessible transit stops grant individuals without access to a vehicle and or individuals unable to drive the ability to get to work. Figures A-44 and A-45 show the number and distribution of high quality transit stops in Los Gatos and the region.

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

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

Figure A-44. All Transit Performance Score and Connectivity Map, Los Gatos, 2019 Source: All Transit Metrics – Los Gatos, CA, 2019.
15 AllTransit, TransitCenter, Bosch, and the Center for Neighborhood Technology (CNT). 2019. Accessed November 2023. https://alltransit.cnt.org/.

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Los Gatos and Saratoga are both lacking in high quality, accessible transit stops. Most the region has more transit stops throughout their communities, the worst being Los Gatos with just a couple stops up North.

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

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

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Figure A-45. High Quality Transit Stops In the Region, 2022 Source: California Department of Housing and Community Development AFFH Data Viewer.

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

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

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Figure A-47. High Quality Transit Areas In the Region, 2022 Source: California Department of Housing and Community Development AFFH Data Viewer.

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Figures A-48 and A-49 show the housing and transportation index by block group for Los Gatos and the region.

Indexes are based on the percentage of household income spent on housing and transportation. Higher percentages indicate cost burden and severe cost burden among households in the town and region.

Key similarities and differences shown in the maps include:
 Most households in Los Gatos spend between 50 percent and 75 percent of their income on housing and transportation. These households are mainly concentrated on the eastern and southern portions of the town, similar to Saratoga. There is only one census tract in Los Gatos with households spending 30 percent or less of their income on housing and transportation.  Trends in Los Gatos and Saratoga differ from Santa Clara County overall. Households in the county are more likely to be spending 30 percent (or less) to 50 percent of their income on housing and transportation. These differences may be the result of Los Gatos and Saratoga’s high housing prices and limited options for public transportation which often provide a more affordable transportation option than owning a vehicle.
 Households spending between 50 percent and 75 percent of their income on housing and transportation are concentrated along the coast from San Mateo to Watsonville. Households in Tracy, Napa, and Watsonville are spending more than 75 percent of their income on housing and transportation costs.

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Figure A-48. Housing and Transportation Index by Block Group, Los Gatos, 2022 Source: California Department of Housing and Community Development AFFH Data Viewer.

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

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Environment
TCAC’s opportunity areas environmental scores are based on the CalEnviroScreen four indicators, which identify areas disproportionately vulnerable to pollution sources such as ozone, PM2.5, diesel PM, pesticides, toxic release, traffic, cleanup sites, groundwater threats, hazardous waste, impaired water bodies, and solid waste sites.

Three-quarters of Los Gatos scores low on positive environmental outcomes, with no census tracts in the Town scoring over 0.5 out of one (Figure A-50). Los Gatos almost uniformly had the lowest possible scores according to the CalEnviroScreen metric for 2021 meaning the Town has more positive environmental factors.

Figure A-50 CalEnviroScreen 4.0, Los Gatos
Source: California Office and Environmental Health Hazard Assessment, CalEnviroScreen Maps and Data.

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-104 Appendix A May 2024
Figure A-51. Regional CalEnviroScreen 4.0 by Census Tract, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-105
Developed by the Public Health Alliance of Southern California (PHASC), the Healthy Places Index (HPI) is based on 25 community characteristics in eight categories including economic, social, education, transportation, neighborhood conditions, housing, clean environment, and healthcare.16 As shown in Figure A-52, Los Gatos scores high on the HPI meaning residents in the city have more healthy communities and outcomes. This is similar to much of the region excluding census tracts near Vallejo, Redwood City, San Francisco, Oakland, San Leandro, and San Jose.

Figure A-52 California Healthy Places Index, Los Gatos
Source: Public Health Alliance of Southern California, California Healthy Places Index. 16 https://healthyplacesindex.org/about/

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-106 Appendix A May 2024
Figure A-53. Healthy Places Index In the Region, 2022
Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-107
Figure A-54 shows fire hazard severity zones as identified by CalFire for the region. As shown in the figure, much of the region is at risk specifically in Santa Clara County and cities including San Mateo, Redwood City, and Oakland. These patterns are particularly important for the Bay Area region especially as climate change is worsening conditions of fire hazards.

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-108 Appendix A May 2024
Disparities in Access to Opportunity
All residents live in highly resourced areas, regardless of race or ethnicity Los Gatos and other surrounding areas are entirely high opportunity jurisdictions.

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

Figure A-55 CDC/ATSDR Social Vulnerability Index 2020, Santa Clara County Source: CDC/ATSDR/GRASP, US Census Bureau, Esri StreetMapTM Premium

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-109
Figure A-56 Social Vulnerability Index by Census Tract, Los Gatos, 2018 Source: California Department of Housing and Community Development AFFH Data Viewer

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-110 Appendix A May 2024
Los Gatos does not have any disadvantaged communities as defined under SB 535 as, “the top 25 percent scoring areas from CalEnviroScreen along with other areas with high amounts of pollution and low populations.”17 However, there are disadvantaged communities in Santa Clara County and across the region. Disadvantaged communities are mainly concentrated in Sunnyvale, San Jose, Oakland, and San Leandro (Figure A-57). 17 https://oehha.ca.gov/calenviroscreen/sb535

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-111
Figure A-57. SB 535 Disadvantaged Communities In the Region, 2022 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-112 Appendix A May 2024
Disparities Specific to the Population Living with a Disability Nine percent of the population in Los Gatos is living with at least one disability, compared to eight percent in the county. The most common disabilities in Los Gatos are ambulatory (4.8 percent), independent living difficulty (4.3 percent), and hearing difficulty (3.6 percent).

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

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

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

A.10 Disproportionate Housing Needs
This section discusses disparate housing needs for protected classes including cost burden and severe cost burden, overcrowding, substandard housing conditions, homelessness, displacement, and other considerations.

Figure A-58 provides a summary of disproportionate housing needs in Los Gatos and the County.

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

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

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-113
Figure A-58 Disproportionate Housing Needs in Los Gatos and Santa Clara County Source: California Department of Housing and Community Development AFFH Data Viewer Town
Town
Town

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-114 Appendix A May 2024
Housing Needs
Since 2015, the housing that has received permits to accommodate growth has almost exclusively been priced for the higher incomes, with only two units permitted for low-income households and none for very low-income households.
 The vast majority of the Town’s homes were built between 1940 and 1979 (69 percent). After this period, housing production slowed, with only three percent of units built since 2010.  Los Gatos housing is becoming more limited by type with 76 percent single-family units, up from 71 percent in 2010. Multifamily housing, with five or more units, made up the second highest category of units (18 percent); there were sixty-four mobile/manufactured homes in Los Gatos18.  Eighty-four percent of owner-occupied homes in Los Gatos are valued over one million dollars with another 39 percent valued above two million dollars. This compares to 48 percent for the county and 35 percent for the Bay Area overall (Appendix B, Figure B-23). According to the Zillow Home Value Index, home values in Los Gatos are 63 percent higher than home values for the county and almost double the cost of housing in the Bay Area (Appendix B, Figure B-24).
 Rents in Los Gatos are most likely to be at least $2,000 per month (63 percent); 24 percent rent for $3,000 per month. While the Town’s rental costs higher than in the county, the trend of increasing rental costs matches the changes in the county and Bay Area overall.  Special needs of individuals with disabilities vary depending on the particular disability. For example, the needs of a blind person differ greatly from those of a person confined to a wheelchair. Special facilities, such as ramps, elevators, or specially designed restrooms necessary for wheelchair access are architectural features needed to make dwellings suitable for persons confined to wheelchairs. Special features needed by ambulatory persons constrained by other disabilities may not be architectural; rather, these might be simple alternatives to conventional dwelling units or furnishings and appliances that make ordinary tasks of housekeeping and home life less trying and more enjoyable. In families, the needs of persons with disabilities, in terms of special features, are fewer than those of a single person.

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

The 2015-2019 Comprehensive Housing Affordability Strategy (CHAS) data indicates there were approximately 2,255 extremely low- and very low-income households living in Los Gatos. Extremely low-income households are those that earn less than 30 percent of the median family income (MFI). Very low-income households are those that earn 50 percent or less of the MFI. There are approximately 1,320 extremely low-income households in Los Gatos (owners and renters). Table A-7 provides data characterizing affordability and cost burden by income group. A total of 670 extremely low-income households in Los Gatos are living in renter-occupied housing units with at least one of the four housing problems. The housing problems identified by CHAS include the following:
 Units with physical defects (lacking complete kitchen or bathroom);  Overcrowded conditions (housing units with more than one person per room);  Housing cost burden, including utilities, exceeding 30 percent of gross income; or  Severe housing cost burdens, including utilities, exceeding 50 percent of gross income.

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

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-115
Above moderate-income households show a sudden increase in the number of units with at least one housing problem. This may be an indicator of cost burden among above moderate-income households.

Table A-7 Housing Problems for all Households by Tenure, Los Gatos Income by Housing Problem Household has at least 1
of 4 Housing Problems
Household has none of the 4
Housing Problems or Cost Burden
not available, no other problems
Owners
Less-than or = 30% MFI 485 110
>30% to less-than or = 50% MFI 250 275
>50% to less-than or = 80% MFI 280 355
>80% to less-than or = 100% MFI 290 340
>100% MFI 820 4,635
Total 2,130 5,710
Renters
Less-than or = 30% MFI 670 55
>30% to less-than or = 50% MFI 315 95
>50% to less-than or = 80% MFI 400 165
>80% to less-than or = 100% MFI 305 225
>100% MFI 290 1,725
Total 1,980 2,260
*The four housing problems are: incomplete kitchen facilities, incomplete plumbing facilities, more than 1 person per room, and cost burden greater than 30%.
**The four severe housing problems are: incomplete kitchen facilities, incomplete plumbing facilities, more than 1.5 persons per room, and cost burden greater than 50%.

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-116 Appendix A May 2024
The projected RHNA for extremely low-income households was based on the assumption that 50 percent of very low-income households qualify as extremely low-income households.19 The very low-income housing need is 537 housing units, which allows the Town to estimate 268 housing units as the extremely low-income housing need.

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

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

Cost Burden and Severe Cost Burden
Cost burden occurs when household spend more than 30 percent of their gross household income on housing costs. Despite Los Gatos’ comparably high housing costs, rates of cost burden are slightly better than the County and Bay Area (Figure A-59). This is indicative of a market with high barriers to entry meaning households need higher incomes to live in Los Gatos and surrounding areas.

Figure A-59 Overpayment (Cost Burden) by Jurisdiction, 2019 Source: ABAG Housing Needs Data Workbook
Cost burden does vary by tenure (renter or ownership) in Los Gatos, Figure A-60 with more renters experiencing cost burden and severe cost burden than owners.
19 https://www.hcd.ca.gov/planning-and-community-development/housing-elements/building-blocks/extremely-low-income-housing-needs

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-117
Figure A-60 Overpayment (Cost Burden) by Tenure, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
Figures A-61 and A-62 map the distribution of cost burdened renters overpaying for their housing in Los Gatos and the region overall.

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-118 Appendix A May 2024
Figure A-61. Overpayment (Cost Burden) by Renters by Census Tract, Los Gatos, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-119
Figure A-62. Overpayment (Cost Burden) by Renters in the Region by Census Tract, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-120 Appendix A May 2024
Figures A-63 and A-64 show cost burden by owner households in Los Gatos and the region. As shown in the maps:
 Census tracts in Los Gatos with the smallest concentration of cost burdened renters has the largest concentration of homeowners overpaying for their housing;  Homeowners are more likely to be cost burdened in Los Gatos than surrounding areas, excluding San Jose which has a census tract where more than 80 percent of owners are cost burdened;  Homeowners are cost burdened across the Bay Area region specifically in San Francisco, Redwood City, Watsonville, Santa Cruz, and areas neighboring Stockton and Tracy; and  These patterns indicate a widespread housing affordability problem where owners are occupying units they cannot afford. Exacerbated by rising housing costs, owners across the region are at a greater risk of displacement and or long-term housing instability.

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-121
Figure A-63. Overpayment (Cost Burden) by Homeowners by Census Tract, Los Gatos, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-122 Appendix A May 2024
Figure A-64 Overpayment (Cost Burden) by Homeowners In the Region 2021 Source: California Department of Housing and Community Development AFFH Data Viewer

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-123
Figure A-65 illustrates the Location Affordability Index (LAI) for Los Gatos, which is an indicator of housing and transportation costs at the neighborhood level. The Town’s LAI suggests that the majority of residents are estimated to spend between $2,000 and $2,500 per month on housing and transportation costs combined.

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-124 Appendix A May 2024
Figure A-65 Location Affordability Index by Census Tract, Los Gatos, 2019 Source: California Department of Housing and Community Development AFFH Data Viewer

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-125
Cost burden by income in Los Gatos decreases for each increase in earned income (AMI category) with a vast difference between the highest and lowest income groups (Figure A-66). Seventy-eight percent of the lowest income group (zero percent to 30 percent of AMI) pay more than 50 percent of their gross household incomes in housing costs.

Figure A-66 Overpayment (Cost Burden) by AMI, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
The lack of publicly subsidized housing and opportunity for use of Housing Choice Vouchers limits the ability of low-income households (who are typically cost burdened) to live in the Town.

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-126 Appendix A May 2024
Figure A-67 Overpayment (Cost Burden) by Race and Ethnicity, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
When analyzing cost burden by family size in Los Gatos, households with five or more persons experience less cost burden (22 percent) compared to all other household types (35 percent) (Figure A-72).

Figure A-68 Overpayment (Cost Burden) by Family Size, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
Overcrowding
The vast majority of households (97 percent) in Los Gatos are not overcrowded (less than the County and Bay Area) as indicated by more than one occupant per room (Figure A-73). Renter households are more likely to be overcrowded, with approximately four percent of renter households with more than one occupant per room (Figure A-69).

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-127
Figure A-69 Occupants per Room by Jurisdiction, 2019
Source: ABAG Housing Needs Data Workbook
Figure A-70 Occupants per Room by Tenure, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
Hispanic residents experience the highest rates of overcrowding (Figure A-71). The rest of the Town’s population experiences approximately 2 percent to 3.5 percent overcrowding.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-128 Appendix A May 2024
Figure A-71 Overcrowding by Race and Ethnicity, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
Figure A-72 illustrates occupants per room by AMI in Los Gatos. In Los Gatos, moderate-income households experience the highest rate of overcrowding (1.7 percent) followed by low-income households (0.9 percent) and extremely low-income households (0.9 percent). Moreover, extremely low-income households report only experiencing overcrowded housing conditions (0.9 percent). This may be an indicator of limited housing options for extremely low-income households in the Town.

Figure A-72 Occupants per Room by AMI, Los Gatos, 2019
Source: ABAG Housing Needs Data Workbook

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-129
Figures A-73 and A-74, illustrate the percentage of overcrowded households in Los Gatos and the Bay Area region Los Gatos and surrounding areas of Campbell, Saratoga and most of Cupertino have similar rates of overcrowding at less than 5 percent of the total resident population. Percentages of overcrowding are higher in San Jose and Santa Clara census tracts along with a few areas in Sunnyvale.

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-130 Appendix A May 2024
Figure A-73 Overcrowding by Census Tract, Los Gatos, 2021) Source: California Department of Housing and Community Development AFFH Data Viewer

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-131
Figure A-74. Regional Overcrowding by Census Tract, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-132 Appendix A May 2024
Given patterns of overcrowding in Los Gatos and the county, severe overcrowding is most notable in San Jose, Santa Clara, and parts of Sunnyvale. These areas overlap with areas that have greatest shares of overcrowding. Less than five percent of households in Los Gatos, Saratoga, Campbell and the immediate surrounding areas are severely overcrowded.

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

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

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-133
Figure A-76. Serve Overcrowding by Census Tract In the Region, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-134 Appendix A May 2024
Figure A-77 Renter Occupied Housing Units (ACS, 2017-2021) Source: California Department of Housing and Community Development AFFH Data Viewer

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-135
Substandard Housing
Data on housing condition are limited, with the most consistent data available across jurisdictions found in the American Community Survey (ACS), which captures units in substandard condition as self-reported in Census surveys. Renters in Los Gatos report living in substandard housing in 5.5 percent of housing units, with the more units lacking complete kitchen facilities (4.1 percent). As shown in Figure A-78, about 0.4 percent of owner households are lacking complete kitchens and 0.6 percent lack complete plumbing.

Figure A-78 Percent of Units Lacking Complete Kitchen and Plumbing Facilities, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
Figures A-79 and A-80 show the percent of units lacking complete plumbing facilities in Los Gatos and the region.

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-136 Appendix A May 2024
Figure A-79. Percent of Units Lacking Complete Plumbing by Census Tract, Los Gatos, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-137
Figure A-80. Units Lacking Complete Plumbing In the Region by Census Tract, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-138 Appendix A May 2024
Expanding on the analysis above, Figures A-81 and A-82 show the percent of units lacking complete kitchen facilities in Los Gatos and the region. Importantly, the only census tract in Los Gatos with units that lack complete plumbing is also the only tract to have a higher percentage of units lacking complete kitchen facilities at around five percent to ten percent of units. This is a greater share than Saratoga and similar to Campbell.

Primary findings illustrated in the following maps include:
 There is one census tract located east of Campbell where ten percent to fifteen percent of units lack complete kitchen facilities. Despite having less than two percent of units without plumbing, multiple census tracts in Cupertino have a greater supply of units without complete kitchens.  San Francisco is the only city in the region to have a census tract where more than 15 percent of units lack complete kitchen facilities. Areas with higher shares of these units are located near Redwood City, Sunnyvale, San Jose, Fremont, and Concord.

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-139
Figure A-81. Percent of Units Lacking Complete Kitchens by Census Tract, Los Gatos, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-140 Appendix A May 2024
Figure A-82. Units Lacking Complete Kitchens In the Region by Census Tract, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-141
Patterns of substandard housing conditions (e.g., lacking complete plumbing/kitchen facilities) across Santa Clara County and the Bay Area region are supported by the large number of housing units built before 1960. Figures A83 and A-84 show the distribution of units built before 1960 in the county and region. As shown in the maps below:
 Census tracts in Los Gatos with concentrations of substandard units have a comparatively larger supply of units built before 1960 at between 40 percent and 60 percent of total units. This contrasts with most of Saratoga, which has a smaller supply of older units.
 Census tracts in Santa Clara and San Jose have older units: nearly all units in these tracts were built in or before 1960.
 Compared to the Bay Area region, Santa Clara County has a smaller supply of units built before 1960 though the housing of housing does vary across the region. The largest concentrations of old units are in San Francisco, San Mateo, Redwood City, Oakland, and San Leandro.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-142 Appendix A May 2024
Figure A-83. Age of Structures by Census Tract, Los Gatos, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-143
Figure A-84. Age of Structures In the Region by Census Tract, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-144 Appendix A May 2024
Homelessness
In 2019, 9,706 people were experiencing homelessness in the County during the one-day count (point-in-time), with only 18 percent of people in emergency or transitional shelter while the remaining 82 percent were unsheltered. In Los Gatos the count was 16, all of whom were unsheltered. In 2022 the number of homeless counted in Los Gatos increased to 58. The majority of unsheltered people experiencing homelessness were in households without children. The majority of people in transitional housing were in households with children or people without children, as shown in Figure A-85.

Figure A-85 Homelessness by Household Type and Shelter Status, Santa Clara County, 2019 Source: ABAG Housing Needs Data Workbook
Figures A-86 and A-87 illustrate HUD’s Point In Time (PIT) Count for 2021 in Los Gatos and the Bay Area. Given the region’s housing costs which continue to increase, it is unsurprising that more than 5,000 people in most Santa Clara County communities are homeless. For the region overall, San Francisco and cities across the Bay have the largest concentrations of individuals experiencing homelessness. Homelessness is less concentrated in areas near San Mateo, Redwood City, Santa Cruz, and Watsonville, all of which have a homeless population of up to 1,000 people.

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

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-145
Figure A-86. Point In Time Count by CoC Level, Los Gatos, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-146 Appendix A May 2024
Figure A-87. Regional Point In Time Count by CoC Level, 2021 Source: California Department of Housing and Community Development AFFH Data Viewer.

Homelessness in Los Gatos will likely grow in the coming years if there are no affordable options for low-income residents, especially given the Town’s small supply of affordable housing, shelters, and transitional housing units.

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-147
Displacement
According to the Sensitive Communities map of vulnerable communities, one area north of Highway 9 and west of Highway 17 were vulnerable to displacement (Figure A-27). The Town has 169 assisted units, but all were rated as low risk of conversion.

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

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-148 Appendix A May 2024
Figure A-88. Estimated Displacement Risk – Overall Displacement by Census Tract, Los Gatos, 2022 Source: University of California Berkely (UCB) Urban Displacement Project and California Department of Housing and Community Development AFFH Data Viewer.

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

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-149
Figure A-89. Regional Estimated Displacement Risk – Overall Displacement by Census Tract, 2022 Source: University of California Berkely (UCB) Urban Displacement Project and California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-150 Appendix A May 2024
Figures A-90 and A-91 show risk of displacement for households with incomes at or below 50 percent Area Median Income (AMI) in Los Gatos and the Bay Area. Similar to overall displacement, households with incomes at or below 50 percent AMI in Los Gatos are at lower risk, consistent with surrounding cities. San Jose is the only city to have a high concentration of at-risk households which is likely related to the city’s larger population of lower income households. As shown throughout the report, households need incomes above 50 percent AMI to live in Los Gatos without being cost burdened or homeless.

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

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-151
Figure A-90 Estimated Displacement Risk – 0 – 50% AMI by Census Tract, Los Gatos, 2022 Source: University of California Berkely (UCB) Urban Displacement Project and California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-152 Appendix A May 2024
Figure A-91. Regional Estimated Displacement Risk – 0 – 50% AMI by Census Tract, 2022 Source: University of California Berkely (UCB) Urban Displacement Project and California Department of Housing and Community Development AFFH Data Viewer.

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

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-153
Figure A-92 Estimated Displacement Risk – 50%-80% AMI by Census Tract, Los Gatos, (UCB, Urban Displacement Project 2022)
Source: University of California Berkely (UCB) Urban Displacement Project and California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-154 Appendix A May 2024
Figure A-93. Regional Estimated Displacement Risk – 50%-80% AMI by Census Tract, 2022 Source: University of California Berkely (UCB) Urban Displacement Project and California Department of Housing and Community Development AFFH Data Viewer.

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-155
Access to Mortgage Loans
In many communities, disparities by race and ethnicity are prevalent for home mortgage applications, particularly in denial rates. This is less true in Los Gatos (Figure A-94). Mortgage denial rates range from 17 percent to 25 percent. American Indian or Alaska Native, Non-Hispanic and Black/African American residents experienced the next highest rejection rate at 25 percent and 22 percent.

Figure A-94 Mortgage Applications and Acceptance by Race, 2018 and 2019 Source: ABAG Housing Needs Data Workbook, Federal Financial Institutions Examination Council's (FFIEC) Home Mortgage Disclosure Act loan/application register (LAR) files.
11%
25% 15%
22%
17% 18% 17%
25%
13%
11%
12% 14% 11%
25%
5%
5%
25%
66%
56%
65% 59% 64%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
American
Indian or
Alaska
Native, NonHispanic
Asian / API,
Non-Hispanic
Black or
African
American,
Non-Hispanic
White, NonHispanicHispanic or
Latinx
Unknown Loan Applications
Loan originated
File closed for incompleteness
Application withdrawn by applicant
Application denied
Application approved but not accepted

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-156 Appendix A May 2024
A.11 Distribution of Sites Inventory
The proposed housing sites in the Sites Inventory are well distributed to increase opportunities throughout the Town. In addition, Accessory Dwelling Units and Senate Bill 9 units have been distributed throughout the Town, where single-family neighborhoods are the most prominent housing type. The distribution of RHNA units by AFFH variable is described below.

Potential Effects on Segregation and Integration
Race/Ethnicity
As discussed above, Los Gatos is primarily comprised of White majority populations. The distribution of RHNA units by racial/ethnic minority population at the tract level is shown in Table A-8 and Figure A-95. More than half of units selected to meet the RHNA are in tracts where 20 percent to 40 percent of the population belongs to a racial or ethnic minority group, including 68 percent of very low income RHNA units, 58.5 percent of low-income units, 63.5 percent of moderate-income units, and 40 percent of above moderate-income units. A significantly larger proportion of above moderate-income units (43 percent) are in tracts where 40 percent to 60 percent of the population belongs to a racial or ethnic minority group compared to very low (18.5 percent), low (16.2 percent), and moderate-income units (17.1 percent). The Town’s RHNA strategy does not disproportionately allocate lower or moderate-income units in areas with larger non-White populations. RHNA sites suitable for housing of all affordability levels are distributed throughout Los Gatos to the greatest extent possible.

Table A-8 Distribution of RHNA Units by Racial/Ethnic Minority Population (2019) Racial/Ethnic Minority
Population (Tract)
Very Low Income Low Income Moderate Income
Above Moderate
Income
Total
Units Percent Units Percent Units Percent Units Percent Units Percent <20% 86 13.6% 90 25.2% 66 19.4% 109 17.0% 351 17.8%
20-40% 431 68.0% 209 58.5% 216 63.5% 256 40.0% 1112 56.4% 40-60% 117 18.5% 58 16.2% 58 17.1% 275 43.0% 508 25.8%
60-80% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
>80% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
Total 634 100.0% 357 100.0% 340 100.0% 640 100.0% 1971 100.0%