Los Gatos City Council
June 4, 2024

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-157
Figure A-95 Sites Inventory and Racial/Ethnic Minority Population by Tract (2019) Source: HCD AFFH Data Viewer 2.0, 2023.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-158 Appendix A May 2024
Persons with Disabilities
Based on the HCD Data Viewer 2.0 and 2017-2021 ACS estimates, there are no Los Gatos tracts containing RHNA sites where more than 10 percent of the population experiences a disability. Sites selected to meet the Town’s RHNA do not exacerbate conditions related to populations of persons with disabilities.

Familial Status
The distribution of RHNA units by population of children residing in married couple households is presented in Table A-9 and Figure A-96. According to the HCD AFFH Data Viewer 2.0, based on 2017-2021 ACS estimates, more than 80 percent of children reside in married couple households in all but one tract. Consistent with the trend townwide, 74 percent of RHNA units are in tracts where more than 80 percent of children are in married couple households. The remaining 26 percent of RHNA units are in the tract where only 68 percent of children are in married couple households. A larger proportion of above moderate-income units are in this tract (43 percent) compared to lower and moderate-income units. There are no tracts in Los Gatos where more than 20 percent of children reside in single-parent female-headed households. The Town’s RHNA strategy does not disproportionately place lower or moderate-income units in areas with higher rates of children in single-parent households.

Table A-9 Distribution of RHNA Units by Children in Married Couple Households (2021) Population of
Children in Married
Couple HHs (Tract)
Very Low Income Low Income Moderate Income
Above Moderate
Income
Total
Units Percent Units Percent Units Percent Units Percent Units Percent <20% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
20-40% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
40-60% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
60-80% 117 18.5% 58 16.2% 58 17.1% 275 43.0% 508 25.8%
>80% 517 81.5% 299 83.8% 282 82.9% 365 57.0% 1463 74.2% Total 634 100.0% 357 100.0% 340 100.0% 640 100.0% 1971 100.0%

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-159
Figure A-96 Sites Inventory and Children in Married Couple Households by Tract (2021) Source: HCD AFFH Data Viewer 2.0 (2017-2021 ACS), 2023.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-160 Appendix A May 2024
Income
Low- and Moderate Income (LMI) areas are defined by HUD as tracts or block groups where at least 51 percent of households are in low- or moderate-income categories. As shown in Figure A-97, there are no block groups containing RHNA sites that are considered LMI areas. Nearly 95 percent of RHNA units are in block groups where 25 percent to 50 percent of households are LMI (Table A-10). Only 1.1 percent of low-income units, 1.2 percent of moderate-income units, and 15 percent of above moderate-income units are in block groups where less than 25 percent of households are LMI. The Town’s RHNA strategy distributes sites throughout tracts with variable LMI populations to the greatest extent possible given the existing conditions.

Table A-10 Distribution of RHNA Units by Population of LMI Households (2021) LMI Households
(Block Group)
Very Low Income Low Income Moderate Income
Above Moderate
Income
Total
Units Percent Units Percent Units Percent Units Percent Units Percent <25% 0 0.0% 4 1.1% 4 1.2% 96 15.0% 104 5.3%
25-50% 634 100.0% 353 98.9% 336 98.8% 544 85.0% 1867 94.7% 50-75% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
75-100% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
Total 634 100.0% 357 100.0% 340 100.0% 640 100.0% 1971 100.0%

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-161
Figure A-97 Sites Inventory and LMI Households by Block Group (2015) Source: HCD AFFH Data Viewer 2.0 (HUD 2011-2015), 2023.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-162 Appendix A May 2024
Racially/Ethnically Concentrated Areas
As discussed above, there are no TCAC designated areas of high segregation and poverty in Los Gatos. In 2023, HCD released a new methodology with mapping to measure Racially Concentrated Areas of Affluences (RCAA). To develop the RCAA layer, staff first calculated a Location Quotient (LQ) for each California census tract representing the percentage of total white population (White Alone, Not Hispanic or Latino) for each census tract compared to the average percentage of total white population for all census tracts in a given COG region.

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

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-163
Figure A-98 Sites Inventory and RCAAs by Tract (2019)
Source: HCD AFFH Data Viewer 2.0 (2015-2019 ACS), 2023.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-164 Appendix A May 2024
Summary
While Los Gatos does not have significant segregation issues within the Town, from a broader regional perspective, providing increased lower-income housing opportunities in a high resource community like Los Gatos will help overcome Countywide and regional patterns of segregation, disparate impacts for impacted racial and ethnic groups, and foster more inclusive communities free from barriers that restrict access to opportunity.

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

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

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

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

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

Potential Effects on Disproportionate Housing Needs
Cost Burden
The distribution of RHNA units by percentage of cost burdened owner-occupied households at the tract-level is shown in Table A-10 and Figure A-99. Between 20 percent and 60 percent of owner-occupied households are cost burdened in all Los Gatos tracts. Nearly all RHNA units (99.2 percent) are in tracts where 40 percent to 60 percent of owners with a mortgage overpay for housing. There are only 15 units allocated towards the above moderate income RHNA in tracts where less than 40 percent of owners are cost burdened.

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

As presented in Table A-12 and Figure A-100, 56 percent of RHNA units are in tracts where 40 percent to 60 percent of renters are cost burdened including 68 percent of very low-income units, 58.5 percent of low income units, and 63.5 percent of moderate income units, and 38.8 percent of above moderate income units. A larger proportion of above moderate-income units are in tracts where less than 40 percent of renters overpay for

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-165
housing compared to lower and moderate-income units. However, tracts with RHNA sites generally have comparable cost burdened renter populations ranging from 23 percent to 46 percent. Further, there are only 8 above moderate-income units in the tract with a cost burdened renter population of 23 percent.

Table A-11 Distribution of RHNA Units by Population of Cost Burdened Owners (2021) Cost Burdened
Owners (Tract)
Very Low Income Low Income Moderate Income
Above Moderate
Income
Total
Units Percent Units Percent Units Percent Units Percent Units Percent <20% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
20-40% 0 0.0% 0 0.0% 0 0.0% 15 2.3% 15 0.8%
40-60% 634 100.0% 357 100.0% 340 100.0% 625 97.7% 1956 99.2% 60-80% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
>80% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
Total 634 100.0% 357 100.0% 340 100.0% 640 100.0% 1971 100.0% Table A-12 Distribution of RHNA Units by Population of Cost Burdened Renters (2021) Cost Burdened
Renters (Tract)
Very Low Income Low Income Moderate Income
Above Moderate
Income
Total
Units Percent Units Percent Units Percent Units Percent Units Percent <20% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
20-40% 203 32.0% 148 41.5% 124 36.5% 392 61.3% 867 44.0% 40-60% 431 68.0% 209 58.5% 216 63.5% 248 38.8% 1104 56.0% 60-80% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
>80% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
Total 634 100.0% 357 100.0% 340 100.0% 640 100.0% 1971 100.0%

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-166 Appendix A May 2024
Figure A-99 Sites Inventory and Cost Burdened Owner HH Population by Tract (2021) Source: HCD AFFH Data Viewer 2.0 (2017-2021 ACS), 2023.

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-167
Figure A-100 Sites Inventory and Cost Burdened Renter HH Population by Tract (2021) Source: HCD AFFH Data Viewer 2.0 (2017-2021 ACS), 2023.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-168 Appendix A May 2024
Overcrowding
According to the HCD AFFH Data Viewer 2.0, based on the 2017-2021 ACS, there is only one tract in Los Gatos where more than 5 percent of households are overcrowded. Table A-13 and Figure A-101 show that 26 percent of RHNA units are in the northern tract where 5.1 percent of households experience overcrowding. A larger proportion of above moderate-income units are allocated in this tract (43 percent) compared to very low (18.5 percent), low (16.2 percent), and moderate-income units (17.1 percent). The Town’s RHNA strategy aims to promote housing opportunities townwide, including areas with need, such as overcrowded populations. The RHNA strategy does not disproportionately place lower or moderate income RHNA units in areas where overcrowding is more prevalent.

Table A-13 Distribution of RHNA Units by Overcrowded Households (2021) Overcrowded
Households (Tract)
Very Low Income Low Income Moderate Income
Above Moderate
Income
Total
Units Percent Units Percent Units Percent Units Percent Units Percent <5% 517 81.5% 299 83.8% 282 82.9% 365 57.0% 1463 74.2%
5-10% 117 18.5% 58 16.2% 58 17.1% 275 43.0% 508 25.8%
10-15% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
15-20% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
>20% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
Total 634 100.0% 357 100.0% 340 100.0% 640 100.0% 1971 100.0%

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-169
Figure A-101 Sites Inventory and Overcrowded HH Population by Tract (2021) Source: HCD AFFH Data Viewer 2.0 (2017-2021 ACS), 2023.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-170 Appendix A May 2024
Displacement
As shown above in Figure A-92, there are no sensitive communities at risk of displacement in Los Gatos. All tracts in the Town are considered “lower displacement risk” areas. Therefore, there are no RHNA sites in communities vulnerable to displacement.

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

Housing cost burden in Los Gatos is lower than nearby cities, but differs by race and ethnicity and by tenure (renters or owners). Asian households experience the lowest rates of cost burden (30 percent) in the Town, followed by non-Hispanic White households (31 percent). This is followed by Black/African American household (34 percent) and Hispanic households (37 percent). Other/Multiple Race households (45 percent) are the most likely to be cost burdened (45 percent). Owners experience cost burden at a lower rate (28 percent) than renters (42 percent). This may be likely due to the relatively high cost of living in Los Gatos and the greater Bay Area region.

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

Sites Inventory Summary
The Town’s sites inventory is shown in Figure A-102. Sites are also shown by tract and respective AFFH variables in Table A-14. The sites inventory as it relates to affirmatively furthering fair housing is discussed below.

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

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

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

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-171
Tract 5069 is the largest tract, encompassing the area east of Los Gatos Boulevard, south of Blossom Hill Road, and north of Kennedy Road. The majority of the area in tract 5069 is zoned for Hillside Residential (HR) and Resource Conservation (RC) uses. Site H-1, with the capacity to accommodate seven above moderate-income units, is the only site that has been identified in tract 5069.

Tract 5070.04 is in southern Los Gatos and is generally bound by Los Gatos Boulevard to the east, the Town boundary and Highway 17 to the west, and Roberts Road, Shannon Road, and Saratoga Los Gatos Road to the north. Tract 5070.04 is predominantly zoned R1 east of Highway 17- and Single-Family Residential Downtown (R-1D) and Central Business District (C-2) west of Highway 17. A total of five RHNA sites have been identified in tract 5070.04. These sites have a total capacity of 335 units, including 86 very low, 90 low, 66, moderate, and 93 above moderate. Like tract in 5068.01, the RHNA strategy proposes sites with the ability to accommodate a variety of income levels in this area. This tract is a highest resource area will few fair housing issues. RHNA sites in this tract promote mixed income communities and increased housing opportunities in high resource areas.

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

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

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

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-172
Table A-14 Sites Inventory by Tract and AFFH Variable
Tract/Site #
# of HHs
in Tract
Total
Capacity
(Units)
Income Distribution (Units)
% Non-White % LMI HHs*
TCAC Opp.

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

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

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

45.9% 0.0%
H-1 7 0 0 0 7
Tract 5070.04 1,753 335 86 90 66 93 17.4% 15.0-26.0%
Highest
Resource

33.4% 0.0%
A-3 7 0 0 0 7

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
A-173 Appendix A May 2024
Tract/Site #
# of HHs
in Tract
Total
Capacity
(Units)
Income Distribution (Units)
% Non-White % LMI HHs*
TCAC Opp.

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

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

ITEM NO. 17.

Appendix A. AFFH Report
May 2024 Appendix A A-174
Figure A-102 Sites Inventory

ITEM NO. 17.

Housing Needs Assessment B

APPENDIX

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-1
B.1 Introduction
This appendix of the Housing Element describes existing housing needs and conditions in the Town of Los Gatos.

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

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

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

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

Summary of Key Facts
 Population – Generally, the population of the Bay Area continues to grow because of new births (natural growth) and the strong economy draws new residents to the region. The population of the Town of Los Gatos increased by 10 percent from 2000 to 2020, which is below the growth rate of the Bay Area.  Age – In 2019, the youth population of the Town, under the age of 18, was 6,767 and the senior population, 65 and older, was 6,393. These age groups represent 22. percent and 20.8 percent, respectively, of the Town’s population.
 Race/Ethnicity – In 2020, 72.3 percent of the Town of Los Gatos population was White, while 0.9 percent was African American, 14.8 percent was Asian, and 7.9 percent was Latinx. People of color in Los Gatos comprise a proportion below the overall proportion in the Bay Area as a whole1.  Employment – The Town of Los Gatos residents most commonly work in the Financial and Professional Services industry. From January 2010 to January 2021, the unemployment rate in the Town decreased by

2.9 percent. Since 2010, the number of jobs located in the jurisdiction increased by 4,440 (28.8 percent).

Additionally, the jobs-household ratio in the Town of Los Gatos has increased from 1.32 jobs per household in 2002 to 1.59 in 2018.
 Number of Homes – The number of new homes built in the Bay Area has not kept pace with the demand, resulting in longer commutes, increasing prices, and exacerbating issues of displacement and homelessness. The number of homes in the Town of Los Gatos increased 4.5 percent from 2010 to 2020, which is below the growth rate for Santa Clara County and below the growth rate of the region’s housing stock during this time period2.
1 The Census Bureau’s American Community Survey accounts for ethnic origin separate from racial identity. The numbers reported here use an accounting of both such that the racial categories are shown exclusive of Latinx status, to allow for an accounting of the Latinx population regardless of racial identity.

The term Hispanic has historically been used to describe people from numerous Central American, South American, and Caribbean countries. In recent years, the term Latino or Latinx has become preferred. This report generally uses Latinx, but occasionally when discussing US Census data, we use Hispanic or Non-Hispanic, to clearly link to the data source.
2 According to HCD Annual Progress Report Dashboard (as of September 20, 2021).

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-2 Appendix B May 2024

 Home Prices – A diversity of homes at all income levels would create opportunities for all of the Los Gatos community to live in Town.
 Ownership – The largest proportion of homes had a value greater than $2 million in 2019. Home prices increased by 98.4 percent from 2010 to 2020.
 Rental Prices – The typical contract rent for an apartment in the Town of Los Gatos was $2,270 in 2019. Rental prices increased by 60.9 percent from 2009 to 2019. To rent a typical apartment without cost burden, a household would need to make $90,960 per year 3.  Housing Type – It is important to have a variety of housing types to meet the needs of a community today and in the future. In 2020, 60 percent of homes in the Town of Los Gatos were single-family detached, 13 percent were single-family attached, 9 percent were small multi-family (two to four units), and 18 percent were medium or large multi-family (five or more units). Between 2010 and 2020, the number of singlefamily units increased more than multi-family units. Los Gatos has a higher portion of detached singlefamily homes than other jurisdictions in the region.  Housing Demand – The Town is populated with a higher share of high-income earners (65% greater than 100% of AMI) than the rest of the county, therefore, housing is built for these higher income and amenity levels. Without goals, policies and programs that specifically address the need to build “affordable housing” targeting incomes less than 100% of AMI (not above greater than 100% AMI), it is highly unlikely developers will voluntarily build housing for low and very-low-income levels.  Cost Burden – The U.S. Department of Housing and Urban Development (HUD) considers housing to be affordable for a household if the household spends less than 30 percent of its income on housing costs. A household is considered “cost-burdened” if it spends more than 30 percent of its monthly income on housing costs, while those who spend more than 50 percent of their income on housing costs are considered “severely cost-burdened.” In the Town of Los Gatos, 20 percent of households spend 30 percent to 50 percent of their income on housing, while 16 percent of households are severely cost burdened and use the majority of their income for housing.  Displacement/Gentrification – According to research from the University of California (UC), Berkeley no households in the Town of Los Gatos live in neighborhoods that are susceptible to or experiencing displacement, and none live in areas at risk of or undergoing gentrification. All households in the Town live in neighborhoods where low-income households are likely excluded due to prohibitive housing costs.  Neighborhood – All residents in Los Gatos live in neighborhoods identified as “Highest Resource” or “High Resource” areas by State-commissioned research, while no residents live in areas identified by this research as “Low Resource” or “High Segregation and Poverty” areas. These neighborhood designations are based on a range of indicators covering areas such as education, poverty, proximity to jobs and economic opportunities, low pollution levels, and other factors4.  Special Housing Needs – Some population groups may have special housing needs that require specific program responses, and these groups may experience barriers to accessing stable housing due to their specific housing circumstances. In Los Gatos, 9 percent of residents have a disability (physical, developmental, etc.), and may require accessible housing. Additionally, 6 percent of Los Gatos households are larger households with five or more people and likely need larger housing units with three bedrooms or more. 8.2 percent of households are female-headed families, which are often at greater risk of housing insecurity.
3 Note that contract rents may differ significantly from, and often being lower than, current listing prices. 4 For more information on the “opportunity area” categories developed by HCD and the California Tax Credit Allocation Committee, see this website:
https://www.treasurer.ca.gov/ctcac/opportunity.asp. The degree to which different jurisdictions and neighborhoods have access to opportunity will likely need to be analyzed as part of new Housing Element requirements related to affirmatively furthering fair housing. ABAG/MTC will be providing jurisdictions with technical assistance on this topic this summer, following the release of additional guidance from HCD.

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-3
B.2 Population, Employment, and Household
Characteristics
Population
The Bay Area is the fifth-largest metropolitan area in the nation and has seen a steady increase in population since 1990, except for a dip during the Great Recession. Many towns and cities in the region have experienced significant growth in jobs and population. While these trends have led to a corresponding increase in demand for housing across the region, the regional production of housing has largely not kept pace with job and population growth.

According to the data, the population of the Town of Los Gatos was estimated to be 31,439 in 2020. The population of Los Gatos makes up 1.6 percent of Santa Clara County 5. In Los Gatos, roughly 13.5 percent of its population moved during the past year, a number that is roughly the same as the regional rate of 13.4 percent.

Table B-1 shows population growth trends for the Town of Los Gatos, Santa Clara County, and the Bay Area as a whole.

Table B-1 Population Growth Trends
Geography 1990 1995 2000 2005 2010 2015 2020
Town of Los Gatos 27,357 28,751 28,592 28,872 29,413 30,807 31,439 Santa Clara County 1,497,577 1,594,818 1,682,585 1,752,696 1,781,642 1,912,180 1,961,969 Bay Area 6,020,147 6,381,961 6,784,348 7,073,912 7,150,739 7,595,694 7,790,537 Source: California Department of Finance, E-5 series.

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

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

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

In 2019 the Town of Los Gatos annexed 24 urban islands totaling 116.1 acres. The islands were comprised of approximately 308 single-family residences and the staff report assumed 2.2 persons per household for an estimated increase in population of 678.
5 To compare the rate of growth across various geographic scales, Figure B-1 shows population for the jurisdiction, county, and region indexed to the population in the year 1990. This means that the data points represent the population growth (i.e., percent change) in each of these geographies relative to their populations in 1990.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-4 Appendix B May 2024
Figure B-1 Population Growth Trends
Source: California Department of Finance, E-5 series.

Note: The data shown on the graph represents population for the jurisdiction, county, and region indexed to the population in the first year shown. The data points represent the relative population growth in each of these geographies relative to their populations in that year. For some jurisdictions, a break may appear at the end of each decade (1999, 2009) as estimates are compared to census counts. DOF uses the decennial census to benchmark subsequent population estimates. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-01 Age
The distribution of age groups in a community shapes what types of housing the community may need in the near future. An increase in the older population may mean there is a developing need for more senior housing options, while higher numbers of children and young families can point to the need for more family housing options and related services. There has also been a move by many to age-in-place or downsize to stay within their communities, which can mean more multi-family and accessible units are needed.

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

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-5
Figure B-2 Los Gatos Population by Age, 2000-2019
Source: U.S. Census Bureau, Census 2000 SF1, Table P12; U.S. Census Bureau, Census 2010 SF1, Table P12; U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B01001. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP04.

Note: Universe: Total population.

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-6 Appendix B May 2024
Figure B-3 Los Gatos Population Age by Race
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B01001(A-G). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table SEN-02.

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

Race and Ethnicity
Understanding the racial makeup of the Town and region is important for designing and implementing effective housing policies and programs. These patterns are shaped by both market factors and government actions, such as exclusionary zoning, discriminatory lending practices, and displacement that has occurred over time and continues to impact communities of color today 7
.

Since 2000, the percentage of residents in the Town of Los Gatos identifying as White, Non-Hispanic has decreased by 13.3 percentage points, with this 2019 population standing at 22,231. At the same time the percentage of residents of all Other Race of Multiple Races, Non-Hispanic has increased. In absolute terms, the Asian/API, Non-Hispanic population increased the most while the White, Non-Hispanic population decreased the most. Figure B-4 shows population for the Town of Los Gatos by race for 2000, 2010, and 2019. 7 See, for example, Rothstein, R. (2017). The color of law: a forgotten history of how our government segregated America. New York, NY & London, UK:

Liveright Publishing.

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-7
Figure B-4 Los Gatos Population by Race, 2000-2019
Source: U.S. Census Bureau, Census 2000, Table P004; U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B03002. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-02.

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-8 Appendix B May 2024
Figure B-5 Los Gatos Jobs in a Jurisdiction
Source: U.S. Census Bureau, Longitudinal Employer-Household Dynamics, Workplace Area Characteristics (WAC) files, 2002-2018. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-11.

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

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

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-9
Figure B-6 Workers by Earnings, by Los Gatos Jurisdiction as Place of Work and Place of Residence Source: U.S. Census Bureau, American Community Survey 5-Year Data 2015-2019, B08119, B08519. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-10.

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-10 Appendix B May 2024
Figure B-7 Los Gatos Jobs-Worker Ratios, By Wage Group
Source: U.S. Census Bureau, Longitudinal Employer-Household Dynamics, Workplace Area Characteristics (WAC) files (Jobs); Residence Area Characteristics (RAC) files (Employed Residents), 2010-2018. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-14.

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

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

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

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-11
Figure B-8 Jobs-Household Ratio
Source: U.S. Census Bureau, Longitudinal Employer-Household Dynamics, Workplace Area Characteristics (WAC) files (Jobs), 2002-2018; California Department of Finance, E-5 (Households). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-13.

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

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

Figure B-9 shows resident employment by industry.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-12 Appendix B May 2024
Figure B-9 Resident Employment by Industry
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table C24030. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-06.

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

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

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

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-13
Figure B-10 Los Gatos Unemployment Rate
Source: California Employment Development Department, Local Area Unemployment Statistics (LAUS), Sub-county areas monthly updates, 2010-2021. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-15.

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

Extremely Low-Income Households
Despite the economic and job growth experienced throughout the region since 1990, the income gap has continued to widen. California is one of the most economically unequal states in the nation, and the Bay Area has the highest income inequality between high- and low-income households in the state9.

In the Town of Los Gatos, 65 percent of households make more than 100 percent of the Area Median Income (AMI)10, compared to 8.6 percent making less than 30 percent of AMI, which is considered extremely low-income.

Regionally, more than half of all households make more than 100 percent AMI, while 15 percent make less than 30 percent AMI. In Santa Clara County, 30 percent AMI is the equivalent to the annual income of $39,900 for a family of four. Many households with multiple wage earners, including food service workers, full-time students, teachers, farmworkers, and healthcare professionals, can fall into lower AMI categories due to relatively stagnant wages in many industries. Figure B-11 shows households by income level. 9 Bohn, S.et al. 2020. Income Inequality and Economic Opportunity in California. Public Policy Institute of California. 10 Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), S1anta Rosa Metro

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-14 Appendix B May 2024
Figure B-11 Households by Household Income Level
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table ELI-01.

Notes: Universe: Occupied housing units. Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located. The data that is reported for the Bay Area is not based on a regional AMI but instead refers to the regional total of households in an income group relative to the AMI for the county where that household is located. Local jurisdictions are required to provide an estimate for their projected extremely low-income households (0-30 percent AMI) in their Housing Elements.

HCD’s official Housing Element guidance notes that jurisdictions can use their RHNA for very low-income households (those making 0-50 percent AMI) to calculate their projected extremely low-income households. As Bay Area jurisdictions have not yet received their final RHNA numbers, this document does not contain the required data point of projected extremely low-income households. The report portion of the housing data needs packet contains more specific guidance for how local staff can calculate an estimate for projected extremely low-income households once jurisdictions receive their 6th cycle RHNA numbers. AMI levels in this chart are based on the HUD metro area where this jurisdiction is located. Households making between 80 and 120 percent of the AMI are moderate-income, those making 50 to 80 percent are low income, those making 30 to 50 percent are very low-income, and those making less than 30 percent are extremely low-income. This is then adjusted for household size.

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

Figure B-12 shows household income by tenure.

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-15
Figure B-12 Los Gatos Household Income Level by Tenure
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-21.

Notes: Universe: Occupied housing units. Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located.

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

In the Town of Los Gatos, Hispanic or Latinx and Other Race or Multiple Races (Hispanic and Non-Hispanic) residents experience the highest rates of poverty, followed by White (Hispanic and Non-Hispanic) residents.

Figure B-13 shows poverty status by race.
11 Moore, E., Montojo, N. and Mauri, N., 2019. Roots, Race & Place: A History of Racially Exclusionary Housing the San Francisco Bay Area. Hass Institute.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-16 Appendix B May 2024
Figure B-13 Los Gatos Poverty Status by Race
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B17001(A-I). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table ELI-03.

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

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

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-17
Tenure
The number of residents who own their homes compared to those who rent their homes can help identify the level of housing insecurity (i.e., ability for individuals to stay in their homes) in a town or city and region. Generally, renters may be displaced more quickly if prices increase.

In the Town of Los Gatos as of 2019, there are a total of 12,083 housing units, and fewer residents rent than own their homes: 35.1 percent versus 64.9 percent. By comparison, 43.6 percent of households in Santa Clara County are renters, while 43.9 percent of Bay Area households rent their homes. Figure B-14 shows housing tenure for Los Gatos, Santa Clara County, and the Bay Area as a whole.

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

Notes: Universe: Occupied housing units.

Homeownership rates often vary considerably across race and ethnicity in the Bay Area and throughout the country. These disparities not only reflect differences in income and wealth, but also stem from Federal, State, and local policies that limited access to homeownership for communities of color while facilitating homebuying for White residents. While many of these policies, such as redlining, have been formally disbanded, the impacts of race-based policy are still evident across Bay Area communities.12

In Los Gatos, 84 percent of Black households owned their homes, while homeownership rates were 72 percent for Asian households, 39 percent for Latinx households, and 65 percent for White households. Notably, recent changes to State law require local jurisdictions to examine these dynamics and other fair housing issues when updating their Housing Elements. Figure B-15 shows housing tenure by the race of the householder. 12 See, for example, Rothstein, R. (2017). The color of law: a forgotten history of how our government segregated America. New York, NY & London, UK:

Liveright Publishing.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-18 Appendix B May 2024
Figure B-15 Los Gatos Housing Tenure by Race of Householder Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25003(A-I). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-20.

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

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

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

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

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-19
Figure B-16 Los Gatos Housing Tenure by Age
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25007. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-18.

Notes: Universe: Occupied housing units.

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-20 Appendix B May 2024
Figure B-17 Los Gatos Housing Tenure by Housing Type
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25032. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-22.

Notes: Universe: Occupied housing units.

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-21
Displacement
Because of increasing housing prices, displacement is a major concern in the Bay Area. Displacement has the most severe impacts on low- and moderate-income residents. When individuals or families are forced to leave their homes and communities, they also lose their support network.

The University of California UC, Berkeley, has mapped all neighborhoods in the Bay Area, identifying their risk for gentrification. They find that in the Town of Los Gatos, there are no households that live in neighborhoods that are susceptible to or experiencing displacement and none live in neighborhoods at risk of or undergoing gentrification. Equally important, some neighborhoods in the Bay Area do not have housing appropriate for a broad section of the workforce. The University of California, Berkeley, estimates that all households in the Town of Los Gatos live in neighborhoods where low-income households are likely to be excluded due to prohibitive housing costs13. Figure B-18 shows household displacement risk and tenure.

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

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

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

Low-Income/Susceptible to Displacement; Ongoing Displacement Other: High Student Population; Unavailable or Unreliable Data. 13 More information about this gentrification and displacement data is available at the Urban Displacement Project’s webpage:
https://www.urbandisplacement.org/. Specifically, one can learn more about the different gentrification/displacement typologies shown in Figure 18 at this link: https://www.urbandisplacement.org/sites/default/files/typology_sheet_2018_0.png. Additionally, one can view maps that show which typologies correspond to which parts of a jurisdiction here: https://www.urbandisplacement.org/san-francisco/sf-bay-area-gentrification-anddisplacement

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-22 Appendix B May 2024
B.3 Housing Stock Characteristics
Housing Types, Year Built, Vacancy, and Permits
In recent years, most housing produced in the region and across the State consisted of single-family homes and larger multi-unit buildings. However, some households are increasingly interested in “missing middle housing” or “Small Multi-Unit Housing, including duplexes, triplexes, townhomes, cottage clusters, and accessory dwelling units. These housing types may open up more options across incomes and tenure, from young households seeking homeownership options to seniors looking to downsize and age-in-place.

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

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

Note: Universe: Housing units.

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

59.6%

13.0%

9.0%

17.9%

0.5%

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-23
Figure B-20 Los Gatos Housing Units by Year Structure Built Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25034. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-04.

Note: Universe: Housing units.

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

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

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-24 Appendix B May 2024
Figure B-21 Los Gatos Vacant Units by Type
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25004. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-03.

Note: Universe: Vacant housing units.

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

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

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

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

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

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

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-25
and converting to market-rate housing17. According to the data, there are 169 assisted units in the Town of Los Gatos. Of these units, none were at high risk or very high risk of conversion. Table B-3 summarizes assisted units at risk in the Town of Los Gatos.

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

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

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

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

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

The Town of Los Gatos has one full time Code Compliance Officer and is reactive (complaint based) in regard to enforcement. Based on the data and input from the Code Compliance Officer, it is estimated that there are approximately 11 units in need of rehabilitation and/or replacement. Through Implementation Programs N and AJ, it is a goal of the 2023-2031 Housing Element to assist 10 low-income households with needed household repairs.

Year 2015-2023 Los Gatos Substandard Housing Code Violations 2023 Occupied rental - gutters in disrepair, and mold in interior rooms. 2022 Owner occupied residence - hole in roof, junk accumulation, and unregistered vehicles*. 2021 Occupied multi-family apartment - carport ceiling repair, trash can area sanitation, and deckingrailing repair/replace. 2020 Unoccupied storage for hoarder-tarps covering holes in roof, unregistered vehicles, and nonfunctioning gutters*.
2020 Occupied residence - tall grass, inoperable vehicles, residence in disrepair, and rodent harborage.
2019 Unoccupied residence - tall grass, un-secured, residence in disrepair, rodent harborage, and demolished by owner.
17 This database does not include all deed-restricted affordable units in the state, so there may be at-risk assisted units in a jurisdiction that are not captured in this data table.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-26 Appendix B May 2024
2017 Owner occupied residence - storage in the side yard, felled trees, unregistered vehicles, parking on dirt, RV used as home in rear yard, and storage of household items in carport*. 2015 Owner occupied residence - hoarding conditions, junk accumulation, inoperable vehicles, and trailer in front yard*.
2015 Owner occupied residence - rodent harborage, trash/rubbish, and unregistered vehicles*. 2015 Unoccupied storage for hoarder - weeds, unregistered vehicles, rodent harborage, and junk accumulation*.
2015 Owner occupied residence - junk accumulation, and structures in disrepair*. 2015 Owner occupied residence and rental - inoperative vehicles parked in front yard, and junk accumulation*
2015 Occupied rental - felled trees, gutters in disrepair, broken window, front door kicked in, chipping and peeling paint.
2015 Unoccupied residence - house deemed unfit for human habitation due to the lack of safe power, water, heat, and smoke alarms.
2015 Occupied multi-family apartment - plumbing leaks, non-functioning furnace, substandard decking, non-functioning fire extinguishers, and unpermitted work.

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

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

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

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-27
Project Sentinel assists individuals with housing problems such as discrimination and rental issues including repairs and provides information and counseling regarding rights and responsibilities under California tenant landlord law. During the calendar year of 2022, Project Sentinel received a total of 58 inquiries for Los Gatos, with 35 of the inquiries resulting in providing information to the caller and a referral. The remaining 23 inquiries resulted in cases, of which only three were related to housing maintenance and repairs. This information further highlights the limited extent of substandard housing conditions in the Town.

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

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

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

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

Note: Universe: Owner-occupied units.

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-28 Appendix B May 2024
Figure B-24 Zillow Home Value Index (ZHVI)
Source: Zillow, Zillow Home Value Index (ZHVI). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-08.

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

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

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

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

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-29
Figure B-25 Contract Rents for Renter-Occupied Units
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25056. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-09.

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

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-30 Appendix B May 2024
Figure B-26 Median Contract Rent
Source: U.S. Census Bureau, American Community Survey 5-Year Data releases, starting with 2005-2009 through 2015-2019, B25058, B25056 (for unincorporated areas). County and regional counts are weighted averages of jurisdiction median using B25003 rental unit counts from the relevant year. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-10.

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

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-31
Overpayment and Overcrowding
A household is considered “cost-burdened” if it spends more than 30 percent of its monthly income on housing costs, while those who spend more than 50 percent of their income on housing costs are considered “severely cost-burdened.” Low-income residents are the most impacted by high housing costs and experience the highest rates of cost burden. Spending such large portions of their income on housing puts low-income households at higher risk of displacement, eviction, or homelessness. While the housing market has resulted in home prices increasing dramatically, homeowners often have mortgages with fixed rates, whereas renters are more likely to be impacted by market increases.

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

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

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-32 Appendix B May 2024
Figure B-28 Cost Burden by Income Level, Los Gatos
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table OVER-05.

Note: Universe: Occupied housing units. Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is “select monthly owner costs”, which includes mortgage payment, utilities, association fees, insurance, and real estate taxes. HUD defines cost-burdened households as those whose monthly housing costs exceed 30 percent of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50 percent of monthly income. Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located.

Currently, people of color19 are more likely to experience poverty and financial instability as a result of Federal, State, and local housing policies that have historically excluded them from the same opportunities extended to white residents. As a result, they often pay a greater percentage of their income on housing, and in turn, are at a greater risk of housing insecurity.

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

3.7%

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-33
Figure B-29 Cost Burden by Race, Los Gatos
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table OVER-08.

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

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-34 Appendix B May 2024
Figure B-30 Cost Burden by Household Size, Los Gatos
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table OVER-09.

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

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

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

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-35
Figure B-31 Cost-Burdened Senior Households by Income Level, Los Gatos Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table SEN-03.

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

For owners, housing cost is “select monthly owner costs”, which includes mortgage payment, utilities, association fees, insurance, and real estate taxes. HUD defines cost-burdened households as those whose monthly housing costs exceed 30 percent of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50 percent of monthly income. Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located.

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

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-36 Appendix B May 2024
Figure B-32 Los Gatos Overcrowding by Tenure and Severity Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table OVER-01.

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

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

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-37
Figure B-33 Los Gatos Overcrowding by Income Level and Severity Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table OVER-04.

Note: Universe: Occupied housing units. The Census Bureau defines an overcrowded unit as one occupied by 1.01 persons or more per room (excluding bathrooms and kitchens), and units with more than 1.5 persons per room are considered severely overcrowded. Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located.

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

Figure B-34 shows overcrowding by race.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-38 Appendix B May 2024
Figure B-34 Overcrowding by Race, Los Gatos
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25014. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table OVER-03.

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

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-39
B.4 Special Housing Needs
Large Households
Large households are defined as those with five or more members. These households are usually families with two or more children or multi-generational families. It can also include multiple families living in one housing unit.

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

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

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

Note: Universe: Occupied housing units.

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-40 Appendix B May 2024
Figure B-36 Housing Units by Number of Bedrooms, Los Gatos Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25042. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-05.

Note: Universe: Housing units.

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

Female-Headed Households
Households headed by one person are often at greater risk of housing insecurity, particularly female-headed households, who may be supporting children or a family with only one income. Female-headed households, especially single parent households, typically have lower incomes and a greater need for affordable housing. In addition, these households can have needs for items such as accessible day care and health care, as well as other supportive services. The relatively low incomes earned by female-headed households, combined with the increased need for supportive services, severely limit the housing options available to them.

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

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

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-41
Figure B-37 Household Type
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B11001. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-23.

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

Female-headed households with children may face particular housing challenges, with pervasive gender inequality resulting in lower wages for women. Moreover, the added need for childcare can make finding a home that is affordable more challenging.

In Los Gatos, 36 female-headed households with children (eight percent) fell in the Below Poverty Level category, while 26 female-headed households without children (five percent) fell in the Below Poverty Level category.

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-42 Appendix B May 2024
Figure B-38 Female-Headed Households by Poverty Status, Los Gatos Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B17012. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table LGFEM-05.

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

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

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

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

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

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-43
According to 2015-2019 ACS estimates, 46.8 percent of persons aged 75 and older and 16.7 percent of persons aged 65 to 74 in Los Gatos experience a disability compared to only 4.7 percent of the population aged 18 to 64.

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

Note: Universe: Senior households. For the purposes of this graph, senior households are those with a householder who is aged 62 or older. Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located.

The housing needs of this group can be addressed through smaller units, accessory dwelling units on lots with existing homes, shared living arrangements, congregate or assisted living and housing assistance programs. The Housing Element includes several programs to directly address the housing needs of the elderly through conservation of affordable housing, accessory dwelling units, helping seniors’ program, housing for persons with special needs, and affirmatively furthering fair housing. According to the CDSS, there are three licensed residential care elderly facilities in Los Gatos with a capacity to serve 70 residents. There is also one continuing care retirement community in Los Gatos with a capacity to serve 458 residents. The Town also partners with the Los Gatos-Saratoga Community Education and Recreation, providing a comprehensive Senior Services program to residents aged 55 and older.
21 Ambulatory difficulty: Having serious difficulty walking or climbing stairs; Independent living difficulty: Because of a physical, mental, or emotional problem, having difficulty doing errands alone such as visiting a doctor’s office or shopping.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-44 Appendix B May 2024
People with Disabilities
Federal laws define a person with a disability as “any person who has a physical or mental impairment that substantially limits one or more major life activities; has a record of such impairment; or is regarded as having such an impairment.” In general, a physical or mental impairment includes hearing, mobility and visual impairments, chronic alcoholism, chronic mental illness, AIDS, AIDS Related Complex, and intellectual disability that substantially limits one or more major life activities. Major life activities include walking, talking, hearing, seeing, breathing, learning, performing manual tasks, and caring for oneself.

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

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

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

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

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

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

Overall, 9 percent of people in Los Gatos have a disability of some kind.22 Figure B-40 shows the rates at which different disabilities are present among residents of Los Gatos. As discussed above, elderly residents are more likely to experience disabilities compared to residents under the age of 65. 22 These disabilities are counted separately and are not mutually exclusive, as an individual may report more than one disability. These counts should not be summed.

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-45
Figure B-40 Disability by Type, Los Gatos
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B18102, Table B18103, Table B18104, Table B18105, Table B18106, Table B18107. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table DISAB-01.

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

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

State law also requires a Housing Element to examine the housing needs of people with developmental disabilities. Developmental disabilities are defined as severe, chronic, and attributed to a mental or physical impairment that begins before a person turns 18 years old. This can include Down’s Syndrome, autism, epilepsy, cerebral palsy, and mild to severe intellectual disability. Some people with developmental disabilities are unable to work, rely on supplemental security income, and live with family members. In addition to their specific housing needs, they are at increased risk of housing insecurity after an aging parent or family member is no longer able to care for them23.

In the Town of Los Gatos, there are 50 children under the age of 18 with a developmental disability (40.7 percent), while there are 73 adults with a developmental disability (60 percent). Table B-4 on the following page shows the number of persons in Los Gatos with developmental disabilities by age. 23 For more information or data on developmental disabilities in your jurisdiction, contact the Golden Gate Regional Center for Marin, San Francisco and San Mateo Counties; the North Bay Regional Center for Napa, Solano and Sonoma Counties; the Regional Center for the East Bay for Alameda and Contra Costa Counties; or the San Andreas Regional Center for Santa Clara County.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-46 Appendix B May 2024
Table B-4 Los Gatos Population with Developmental Disabilities by Age Age Group Number
Age Under 18 50
Age 18+ 73
Source: California Department of Developmental Services, Consumer Count by California ZIP Code and Age Group (2020). This table is included in the Data Packet Workbook as Table DISAB-04.

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

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

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

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

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

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

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

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-47
Homelessness
Homelessness remains an urgent challenge in many communities across the State, reflecting a range of social, economic, and psychological factors. Rising housing costs result in increased risks of community members experiencing homelessness. Many residents have found themselves housing insecure and ended up homeless in recent years, either temporarily or longer term. Addressing the specific housing needs for the unhoused population remains a priority throughout the region, particularly since homelessness is disproportionately experienced by people of color, people with disabilities, those struggling with addiction, and those dealing with traumatic life circumstances.

In Santa Clara County, the most common type of household experiencing homelessness are those without children in their care. Among households experiencing homelessness that do not have children, 87 percent are unsheltered. Of homeless households with children, most are sheltered in an emergency shelter. Figure B-41 shows household type and shelter status in Santa Clara County.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-48 Appendix B May 2024
Figure B-41 Homelessness by Household Type and Shelter Status, Santa Clara County Source: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports (2019). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HOMELS-01.

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

People of color are more likely to experience poverty and financial instability as a result of federal and local housing policies that have historically excluded them from the same opportunities extended to White residents. Consequently, people of color are often disproportionately impacted by homelessness, particularly Black residents of the Bay Area.

In Santa Clara County, White (Hispanic and Non-Hispanic) residents represent the largest proportion of residents experiencing homelessness and account for 44 percent of the homeless population, while making up 45 percent of the overall population. Figure B-42 shows the racial group share of the homeless population.

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-49
Figure B-42 Racial Group Share of General and Homeless Populations, Santa Clara County Source: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports (2019); U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B01001(A-I). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HOMELS-02.

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-50 Appendix B May 2024
Figure B-43 Latinx Share of General and Homeless Populations, Santa Clara County Source: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports (2019); U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B01001(A-I). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HOMELS-03.

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

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

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

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-51
Figure B-44 Characteristics for the Population Experiencing Homelessness, Santa Clara County Source: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports (2019). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HOMELS-04.

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

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-52 Appendix B May 2024
Table B-6 Students in Local Public Schools Experiencing Homelessness Academic Year Los Gatos Santa Clara County Bay Area
2016-17 0 2,219 14,990
2017-18 0 2,189 15,142
2018-19 0 2,405 15,427
2019-20 0 2,297 13,718
Source: California Department of Education, California Longitudinal Pupil Achievement Data System (CALPADS), Cumulative Enrollment Data (Academic Years 2016-2017, 2017-2018, 2018-2019, 2019-2020). This table is included in the Data Packet Workbook as Table HOMELS-05.

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

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

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

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

In the Town of Los Gatos, there were no reported students of migrant workers in the 2019-20 school year. The trend for the region for the past few years has been a decline of 2 percent in the number of migrant worker students since the 2016-17 school year. The change at the county level is a 50 percent decrease in the number of migrant worker students since the 2016-17 school year. Table B-7 summarizes migrant worker student population in the Town of Los Gatos, Santa Clara County, and the Bay Area as a whole.

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

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

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

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

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-53
Figure B-45 Farm Operations and Farm Labor by County, Santa Clara County Source: U.S. Department of Agriculture, Census of Farmworkers (2002, 2007, 2012, 2017), Table 7: Hired Farm Labor. For the data table behind this figure, please refer to the Data Packet Workbook, Table FARM-02.

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-54 Appendix B May 2024
Non-English Speakers
California has long been an immigration gateway to the United States, which means that many languages are spoken throughout the Bay Area. Since learning a new language is universally challenging, it is not uncommon for residents who have immigrated to the United States to have limited English proficiency. This limitation can lead to additional disparities if there is a disruption in housing, such as an eviction, because residents might not be aware of their rights or they might be wary to engage due to immigration status concerns.

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

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

Note: Universe: Population 5 years and over.

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

1.7%

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-55
Table B-8 Homeless Facilities Near Los Gatos
Facility Beds Target Population Location
Emergency Shelters
Asian Americans for Community
Involvement 12 Women with Children San Jose
City Team Rescue Mission 52 Single men San Jose
Hospitality House, Salvation Army 24 Single men San Jose Our House Youth Services HomeFirst 10 Homeless and run-away youth San Jose San Jose Family Shelter 143 Families San Jose
Support Network for Battered
Women 18 Domestic violence shelter- women and children San Jose Emergency Shelter/Transitional Housing
InnVision 178 Working men, women & children, mentally
ill men & women San Jose
James Boccardo Reception Center 370 Families and single adults San Jose Transitional Housing
Next Door- Women with Children 19 Domestic Violence Shelter -Women and children San Jose
St. Josephs Cathedral 45 Worker housing- men, women and children San Jose
YWCA- Villa Nueva 126 Women and children San Jose
Source: Santa Clara County Consolidated Plan, 2010-2015

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-56 Appendix B May 2024
B.5 Fair Housing Compliance
Santa Clara County and the Town of Los Gatos are compliant with federal and State fair housing laws. Fair housing laws both the Town and County remain complaint with include:
 Title II of the Americans with Disabilities Act (ADA), prohibiting discrimination on the basis of disability in all public services, programs, and activities provided by state and local governments. The Town’s Zoning Ordinance does contain a process for requesting reasonable accommodations;  Senate Bill 2 (SB 2), requiring local governments to permit emergency shelters (in the CM zone) and transitional housing (in the LM zone) without any discretionary action. The provision for transitional and supportive housing in compliance with State law has been included as Implementation Program AP; and  Senate Bill 520 (SB 520), adopting written reasonable accommodation procedures in the Town of Los Gatos’ Zoning Ordinance.

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

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

B.6 Renter’s Survey Results
On November 15, 2022, the Town of Los Gatos published a Renter’s Housing Survey to gather input from residents who are currently renting or have a history of renting in the Town. The goal of the survey was to inform the Town on renter household’s needs and possible barriers to accessing housing. The survey was made available in English, Russian, and Spanish, and posted online at www.EngageLosGatosHousing.com.

Additionally, the survey was distributed in print throughout the Town in collaboration with West Valley Community Services (WVCS). The chosen languages were determined in communicating with the Los Gatos-Monte Sereno Police Department as being the most encountered in their interactions with the community. The survey received a total of 62 responses. The following serves as a brief summary of responses.

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

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-57
Respondent Role in the Town
Survey respondents were asked to identify their racial or ethnic group that they identify as, their annual household income, and their role in the Los Gatos community. The majority identified themselves as Los Gatos residents renting their homes (64 percent) compared to 17 percent owning their homes. Twelve (12) percent of respondents identified as business owners in the Town, 31 percent identified as working in the Town, and 10 percent identified as visitors. Zero percent of respondents identified as unhoused or lacking permanent housing.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-58 Appendix B May 2024
Respondent Ideas to Enhance Housing in Los Gatos
Survey respondents were asked for ideas to make Los Gatos more welcoming to potential residents who currently cannot find housing. The most common responses include the following:
 Increase affordable rental housing stock;
 Encourage property owners to build ADUs/JADUs to increase affordable rental units;  Affordable workforce housing;
 Add a variety of housing types for all income levels in Downtown Los Gatos and increase mixed-use development;
 Increase affordable housing stock specifically for single-person households;  Increase rental stock that is accessible for persons with disabilities and other special needs groups;  Expand Town support for cultural diversity;
 Increase community-centered public spaces (i.e.: community gardens, dog parks, place making, parks, etc.);
 Increase live/workspaces; and
 Repair historical past of racism and exclusionary practices.

ITEM NO. 17.

Appendix B. Housing Needs Assessment

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-61
Respondent Housing Characteristics
Survey respondents were asked to identify what type of housing they currently reside in, of which approximately 45 percent identified as renting apartments, followed by 33 percent living in a guesthouse. When asked to rate the physical conditions of their home, 33 percent of respondents identified there was no need for rehabilitation of their home, while 29 percent indicated minor maintenance was needed (i.e.: peeling paint, chipped stucco, etc.).

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

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-62 Appendix B May 2024
Housing Objectives and Goals for Los Gatos to Consider
When prompted to identify the top three most important housing objectives for Los Gatos (among a list of options provided), the majority of respondents chose the following:
 Providing more opportunities for home ownership at all income levels (79 percent);  Encouraging developments with a mix of residential, commercial, and other compatible uses (48 percent);  Encouraging development of small housing types, such as micro-units (48 percent); and  Assisting senior and/or affordable housing developers with securing State or Federal funding (45 percent).

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-63
When respondents were asked if there are populations, they believe are underserved in Los Gatos the majority identified low-income households or families (67 percent), moderate-income or workforce-income households (67 percent), educators (64 percent), and service or retail workers (60 percent).

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-64 Appendix B May 2024
Summary and Conclusion
Overall, survey respondents indicated a need for; more affordable housing for renter households and special needs groups; increased housing types for smaller households; development of mixed-use space in the Downtown that accommodates mixed-income households; expansion of public services; and more opportunities for homeownership at all income levels.

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

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

ITEM NO. 17.

Appendix B. Housing Needs Assessment

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-66 Appendix B May 2024
Respondent Ideas to Enhance Housing in Los Gatos
In-person survey respondents were asked for ideas to make Los Gatos more welcoming to potential residents who currently cannot find housing. The most common responses include the following:
 Increase affordable housing stock specifically for single-person households;  Develop shared housing programs;
 Advertise affordable housing on social media sites like Facebook Marketplace; and  Develop a waiting list so potential residents may be notified when affordable housing is available.

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-67
Respondent Housing Characteristics
In-person survey respondents were asked to identify what type of housing they currently reside in, of which 60 percent identified as renting apartments, followed by 27 percent not identifying. When asked to rate the physical conditions of their home, 35 percent of respondents chose not applicable, 24 percent indicated rehabilitation is not needed, and 18 percent indicated minor maintenance is needed (i.e.: peeling paint, chipped stucco, etc.). Six (6) percent indicated major repairs to their home are needed (i.e.: new plumbing, new roof, new windows, etc.).

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-68 Appendix B May 2024
Housing Objectives and Goals for Los Gatos to Consider
When prompted to identify the top three most important housing objectives for Los Gatos (among a list of options provided), the majority of in-person respondents chose the following:
 Providing more opportunities for home ownership at all income levels (50 percent);  Encouraging development of small housing types, such as micro-units (50 percent);  Encouraging developments with a mix of residential, commercial, and other compatible uses (39 percent); and
 Assisting permanent supportive housing, transition housing, and/or emergency shelter projects with securing State or Federal funding (33 percent).

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

ITEM NO. 17.

Appendix B. Housing Needs Assessment
May 2024 Appendix B B-69
In-person survey respondents were asked to identify the three actions that would have the most impact on promoting housing supply, choice, and affordability and removing barriers to housing and neighborhoods of their choosing (among a list of options provided), the majority of respondents chose the following two actions:
 Acquisition of additional affordable units in mixed income developments (53 percent); and  Increase accessible number of units above State law through incentives, policies, funding, and other similar measures (35 percent).

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
B-70 Appendix B May 2024
Summary and Conclusion
Overall, in-person survey respondents indicated a need for more affordable housing for renter households and special needs groups, specifically seniors and persons with disabilities; emergency and transitional housing; expansion of public and supportive services; and more opportunities for homeownership at all income levels.

ITEM NO. 17.

Governmental and Non-Governmental Constraints C

APPENDIX

ITEM NO. 17.

Appendix C. Governmental and Non-Governmental Constraints May 2024 Appendix C C-1
C.1 Governmental Constraints
Potential governmental constraints that impact housing development in Los Gatos include land use and zoning regulations, building code standards and code compliance, Town design and development standards, governmental fees and exactions, processing and permitting time, and local housing programs.

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

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

Land Use
On June 30, 2022, the Town Council adopted the 2040 General Plan and accompanying Environmental Impact Report (EIR). As of September 27, 2022, the Land Use and Community Design Elements of the 2040 General Plan are suspended pending the results of a referendum. In the interim, the Town’s 2020 General Plan Land Use and Community Design Elements will govern during the suspension period. This Appendix discusses and analyzes the 2020 General Plan, since it is the current document governing land use and development in the Town.

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
C-2 Appendix C May 2024
Densities range from 12 to 20 units per acre, maximum height up to 30 feet or 35 feet when the building has below grade parking and lot coverage up to 40 percent.
 Associated Zoning Designation: R-M
Commercial Designations
 MU, Mixed-Use. The purpose of this designation is to provide a mixture of commercial uses (including retail, office, hotel/lodging) and residential, along with allowing stand-alone commercial uses (including retail, office, hotel/lodging, service uses, recreational uses, and restaurants). Residential is only allowed when developed in a mixed-use format with retail, office, or hotel/lodging components on the site. Projects developed under this designation shall maintain primary orientation to arterial street frontages and proper transitions and buffers to adjacent residential properties. Densities range up to 20 units per acre, with a maximum height up to 35 feet, and lot coverage up to 50 percent.
 Associated Zoning Designation: CH
 NC, Neighborhood Commercial. The purpose of this designation is to provide for necessary day-to-day commercial goods and services required by the residents of the adjacent neighborhoods. This designation encourages concentrated and coordinated commercial development at easily accessible locations.

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

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

ITEM NO. 17.

Appendix C. Governmental and Non-Governmental Constraints May 2024 Appendix C C-3
The Zoning Code directly shapes the form and intensity of residential development by providing controls over land use, density, building heights, setbacks, lot coverage, and floor area ratios, which regulate the bulk and mass of buildings on a site. While necessary to maintain the high quality of life in the Town, the development standards contained in the Zoning Code limit densities and control building form and are potential constraints on new housing production. However, the Town is actively addressing this limitation and seeking to meet its RHNA by creating a Housing Element Overlay Zone (HEOZ) as part of Implementation Program AQ to allow for and encourage multi-family and mixed-use developments.

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

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

Parking is often a significant component of the cost of residential development and can be viewed as a constraint to the provision of housing. The Town has provided some flexibility in its parking requirements, particularly for Planned Developments and for some developments providing affordable units for elderly and disabled persons.

However, the visitor parking requirement of one additional space per unit effectively raises the parking requirement for multi-family developments to 2.5 spaces per unit. This is a potential constraint to housing development, particularly for smaller units. Therefore, this Housing Element Update proposes Zoning Code amendments to reduce constraints related to parking standards, including reducing guest parking requirements and reducing requirements for development near transit.

As part of the Housing Element Update, programs to amend the Zoning Code and General Plan to ensure adequate sites are available to accommodate the identified sites in the Sites Inventory are proposed and include:
 Amending the Zoning Code to include a Housing Element Overlay Zone (HEOZ) to apply to the sites included in the Site Inventory to modify the development standards (i.e., density, lot coverage, floor area ratio, height) on those sites;
 Amending the North Forty Specific Plan to allow for a density from 30 dwelling units per acre to 40 dwelling units per acre and an increase the total number of dwelling units allowed in the Specific Plan;  Amending the General Plan to modify the designation of 16492 Los Gatos Boulevard and Parcel 532-07- 086 from Low Density Residential to Neighborhood Commercial;  Clarifying the text of the non-residential zones that the housing sites contained in the sites inventory table that are in these zones must include housing;
 Rezoning the Caltrans ROW (Site E3) from R-1:8 to R-M;

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
C-4 Appendix C May 2024
 Amending the General Plan to modify the designation of the Caltrans ROW from Low Density Residential to Medium Density Residential; and
 Allowing for housing developments that are 100 percent affordable by-right in the Mixed-Use General Plan designation.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
C-5 Appendix C May 2024
Table C-1 Residential and Commercial Development Standards by Zoning District Notes: a Single-family, residential condominiums, and two-family dwellings must provide two parking spaces for each living unit and one additional visitor space for each residential unit is required. See discussion below for information regarding required visitor spaces. b The Town requires 1.5 parking spaces per unit for multiple-unit dwellings in all zones and two-family dwellings in the R-1D zone. One visitor parking space for each residential unit other than a detached single-family or two-family dwelling shall be required, unless the Planning Commission makes a finding that more or less visitor parking is necessary due to the size or type of housing unit(s). c
Setbacks vary depending on adjacent uses and streets for commercial designations.

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

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

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

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

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

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

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

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

ITEM NO. 17.

Appendix C. Governmental and Non-Governmental Constraints May 2024 Appendix C C-6
North 40 Specific Plan Residential Development Standards The North 40 Specific Plan consists of three Districts: the Lark District, Transition District, and Northern District.

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

ITEM NO. 17.

Appendix C. Governmental and Non-Governmental Constraints May 2024 Appendix C C-7
o For condominiums: 100 square feet per unit
o For other multi-family residential development: 200 square feet per unit The greatest constraints on development in the Specific Plan Area are the maximum density and development capacity. The Housing Element includes a program to increase the maximum permitted density to 40 units per acre and increase the overall development capacity.

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

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

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

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

Multiple-Family Residential (R-M) Residential Development Standards The R-M zone applies to areas served by streets and other public improvements and services which are generally sufficient to sustain multiple residential development, and where the highest and best use of the subject property and surrounding properties is multiple residential. The R-M zone is the major multiple residential zoning district in the Town and is designed to allow various density ranges. The applicable General Plan land use category for the R-M zone is High Density Residential.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
C-8 Appendix C May 2024
 Minimum lot area: 8,000 square feet.
 Minimum lot width: 60 feet.
 Maximum lot coverage: The maximum lot coverage is 40 percent for a residential project.  Maximum building height: The maximum building height is 30 feet for a residential project, except when the building has below grade parking the maximum is 35 feet.  Setback requirements for a mixed-use project:

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

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

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

As for height, the Town permits 30 to 35 feet for housing up to 20 units per acre. This height limit is more than adequate to accommodate the allowable density. Within the new Housing Element Overlay Zone, the Very High Density Residential, Mixed Use Commercial, and North Forty Specific Plan have increased height to 45 feet accommodate the 30 to 40 dwelling units per acre. Furthermore, the Town Code does not limit height by the number of stories. This approach allows the developers the flexibility to accommodate the allowable density and creative design (such as split-levels). The Town Code’s definition of height excludes towers, spires, elevator and mechanical penthouses, cupolas, wireless telecommunication antennas, similar structures and necessary

ITEM NO. 17.

Appendix C. Governmental and Non-Governmental Constraints May 2024 Appendix C C-9
mechanical appurtenances that are not used for human activity or storage. Therefore, the height limit of 45 feet does not impede development of four-story buildings or the achievement of 40 units per acre.

For open space, the Town requires 200 square feet of open space per multi-family unit but only 120 square feet per above ground condominium unit. Requiring a higher open space standard for rental units than for ownership units may impede the development of rental housing. This Housing Element includes a program action to revise the open space requirements to ensure development standards facilitate multi-family housing production.

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

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
C-10 Appendix C May 2024
Zoning District Residential Permitted Uses Residential Uses Allowed with a Conditional Use Permit
 Residential care facility, small family home
 Accessory dwelling units
 Junior accessory dwelling units
Duplex
Residential
Zone (R-D)
 Single-family dwelling
 Two-family dwelling
 Residential care facility, small family home
 Accessory dwelling units
 Junior accessory dwelling units
 Residential care facility-large family home
 Residential care facility-group home
Multiple -
Family
Residential
Zone (R-M)
 Single-family dwelling
 Two-family dwelling
 Residential care facility, small family home
 Multi-family dwelling
 Transitional Housing facility as defined by
Health and Safety Code section 50675.2
 Accessory dwelling units
 Junior accessory dwelling units
 Residential care facility-large family home
 Residential care facility-group home
 Mobile home park
 Conversion of a mobile park to any other
use
Mobile Home
Residential
Zone (RMH)
 Mobile home parks for single-family dwelling
uses
 Residential quarters for use by manager or
other park employees
 Conversion of a mobile park to any other
use
Neighborhood
Commercial
Zone (C-1)
 Residential care facility-small family home
 Residential care facility-large family home
 Residential care facility-group home
 One-family dwelling (in a mixed-use
project)
 Two-family dwelling (in a mixed-use
project)
 Multiple-family dwelling (in a mixed-use
project)
 Live/work units
Central
Business
District
Commercial
Zone (C-2)
 Single-family and two-family uses, in
conjunction with the other uses permitted in
this section
 Residential care facility-small family home
 Residential care facility-large family home
 Residential care facility-group home
 Multiple-family dwelling (in a mixed-use
project)
 Live/work units
Restricted
Highway
Commercial
Zone (CH)
 Residential care facility-small family home
 Residential care facility-large family home
 Residential care facility-group home
 One-family dwelling (in a mixed-use
project)
 Two-family dwelling (in a mixed-use
project)
 Multiple-family dwelling (in a mixed-use
project)
 Live/work units
Office (O)  Residential care facility-small family home  Residential care facility-large family home

ITEM NO. 17.

Appendix C. Governmental and Non-Governmental Constraints May 2024 Appendix C C-11
Source: Town of Los Gatos
The Town Code will be modified to add by-right housing as required by State law. Implementation Program AP will modify the Town Code to allow Transitional and Supportive Housing development by-right in all zoning districts that permit residential uses. The program will also permit by-right Permanent Supportive Housing in zones where multi-family and mixed uses are permitted, including nonresidential zones permitting multi-family uses. The CUP requirement for residential care facilities for seven or more is a constraint to housing.

Implementation Program AP, also includes a Zoning Code amendment to allow group homes of seven or more by right in all residential zones conforming with HCD’s Group Home Technical Advisory (December 2022), no longer requiring a CUP and a zoning amendment to allow Employee Housing consisting of up to 36 beds or 12 units in zones that allow agricultural uses (per Health and Safety Code Section 17000, et seq.).

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

Planned Development (PD)
The PD overlay zone was updated in 2018 and is intended to preserve, enhance, and/or promote development that highlights the Town’s characteristics. This includes natural and historic resources, production of affordable housing, maximization of open space, and projects that provide a public benefit to the Town’s citizens. As an Zoning District Residential Permitted Uses Residential Uses Allowed with a Conditional Use Permit
 Residential care facility-group home
 One-family dwelling (in a mixed-use
project)
 Two-family dwelling (in a mixed-use
project)
 Multiple-family dwelling (in a mixed-use
project)
 Live/work units
CommercialIndustrial Zone
(LM)
 Live/work units
North Forty
Specific Plan
(NF-SP)
Lark District:
 Townhomes/Garden Cluster
 Rowhouses
 Multi-Family
 Condominiums
 Live/work units
Transition District:
 Townhomes/Garden Cluster
 Rowhouses
 Multi-Family
 Condominiums
 Live/work units
Northern District:
 Multi-Family when located above commercial
 Condominiums when located above commercial
 Live/work units when located above commercial
Lark District:
 Cottage Cluster

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
C-12 Appendix C May 2024
incentive to housing development, the PD overlay provides alternative standards for housing developments with a minimum of 40 percent of the units affordable to households of very low, low, or moderate income.

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

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

Housing Element Overlay Zone (HEOZ)
In order to increase opportunities for housing development throughout the Town, the Housing Element includes creation of the HEOZ. The intent of the HEOZ is to provide modified development regulations for sites identified in the sites inventory, including increased density and height requirements, to encourage residential development.

Table C-3 summarizes the maximum densities to be provided by the HEOZ in comparison to the maximum density currently permitted by the 2020 General Plan and the base zoning designation. In addition to increased densities, the HEOZ will allow for increased height and other flexibility in development standards to ensure that development is achievable at the desired maximum density.

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

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

ITEM NO. 17.

Appendix C. Governmental and Non-Governmental Constraints May 2024 Appendix C C-13
the requirement for a CUP for residential development in zoning districts that currently allow multi-family uses with a CUP.

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

Manufactured Housing
Manufactured homes are houses that are transportable, built on a permanent chassis, and designed for use with or without a permanent foundation when attached to required utilities. Manufactured housing is also known as prefabricated, or factory-built homes. Manufactured homes do not include recreational vehicles. Due to the much lower cost of construction and labor costs needed to build a manufactured home, this housing type provides an affordable solution. Manufactured homes installed on permanent foundation are permitted by-right on all residentially zoned parcels. Examples of manufactured homes built in the Town have included ADUs, singlefamily homes, multi-family homes, and mobile homes.

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

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

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

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

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
C-14 Appendix C May 2024
As part of the Housing Element Update the Town has included Implementation Program AP that will update the Zoning Code to allow transitional housing and supportive housing developments by-right in all zoning districts that permit residential (per SB 2). The program will update the Municipal Code to accommodate the by-right, streamlined, ministerial review of supportive and transitional housing developments as mandated by Assembly Bill (AB) 2162 (2019). AB 2162 requires local jurisdictions to permit the development of transitional/supportive housing by-right in any zoning district that permits multi-family and mixed uses. Additionally, jurisdictions must provide a ministerial review of transitional and supportive housing developments that only reviews these developments against standards for residential uses in that same district. As part of this streamlined, ministerial review, the Town will be required to notify applicants of their eligibility for streamlining within 30 days of application submittal. Proposed developments of up to 50 supportive housing units must be reviewed completely within sixty (60) days while developments proposing more than 50 units must be reviewed within one hundred and twenty (120) days.

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

ADUs can also be useful to generate additional rental income for the homeowner, making homeownership more financially feasible.

In 2020 the Town adopted Ordinance 2307, amending the Town Code to further address barriers to the development of ADUs and to conform with a series of State bills aimed at encouraging single-family homeowners to add ADUs to their property. Permitted zones allowing the ADUs include the R-1, R-D, R-M, R-1D, RMH, HR and RC zones. ADUs are not to exceed 1,200 square feet and a minimum of 800 square feet must be allowed.

One parking space is required per unit or bedroom, unless the ADU is located within half a mile of a transit stop.

The Housing Element includes a program to direct the Town to amend the existing ADU ordinance to be consistent with State law by the end of 2023. Over the past three years (2020-2023), the Town has averaged 32 issued ADU building permits per year. As a conservative assumption, this Housing Element projects only 25 ADUs per year for 200 ADUs over eight years.

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

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

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

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

ITEM NO. 17.

Appendix C. Governmental and Non-Governmental Constraints May 2024 Appendix C C-15
The Town may also use models developed by other cities. The Town will conduct a media campaign to promote the pre-approved plans and plans will be available on the Town’s website.

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

Building and Code Compliance
In addition to the General Plan land use designations and Town Code, Los Gatos has recently adopted updated building codes that enforce Town regulations with the purpose of protecting the lives, health, property, and public welfare of Los Gatos residents. Each Code is an enforcement of State and local standards and is not considered a constraint on housing production in Los Gatos. The following 2022 California Building Standards Codes have been adopted, as amended by the Town:
 Part 1 California Administrative Code.
 Part 2 California Building Code, Volumes 1 and 2, including Appendices I and J (local amendments).  Part 2.5 California Residential Code including Appendices AH, AK, AO, AQ, AX, and AZ (local amendments).
 Part 3 California Electrical Code.
 Part 4 California Mechanical Code.
 Part 5 California Plumbing Code including Appendices A, B, D, G, I, K, and L (local amendments).  Part 6 California Energy Code.
 Part 8 California Historical Building Code including Appendices A.  Part 9 California Fire Code (local amendments).
 Part 10 California Existing Building Code including 2021 International Existing Building Code Chapter 14, as well as Appendices A2, A3, A4, and A5.
 Part 11 California Green Building Standards Code (CALGreen) Chapters 1 through 8 only (local amendments).
 Part 12 California Referenced Standards Code.
 2022 International Property Maintenance Code.

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

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

The Town’s standards and requirements for streets, sidewalks, and other site improvements are found in the Municipal Code. These standard improvements are not considered a constraint on development because the Town does not include improvements beyond what is required to meet health and safety requirements. While on or off-site improvements may increase the costs of developing housing, such improvements are necessary to adequately provide the infrastructure and public facilities needed to support housing development. This infrastructure and these facilities are critical to balancing the health and safety of the public, with the development needs of the Town, without hindering housing development. Subdivision design standards for the Town, described in the Town Code starting at Section 29.10.06701, include the following on- and off-site improvements:
 Parking bays may be required on narrow streets where parking may be prohibited on either or both sides of the street.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
C-16 Appendix C May 2024
 Roadways must be paved with asphalt concrete.
 Sidewalks are required on all streets in a subdivision unless the lots will be 20,000 feet in size or more.  Curbs and gutters must be constructed on all streets.  Culverts, storm drains, and drainage structures will be required in a subdivision.  Sanitary sewers with house service laterals are required to serve each lot, with some exceptions in hillside areas.
 Underground utilities with connections are required for each lot.  Street lighting shall be installed in accordance with Town standards.

Design Guidelines
The Town has adopted Residential Design Guidelines for single-family and two-family dwelling units, which incorporate the Town’s previous Residential Pre-1941 Design Guidelines for historically significant structures, sites, and historic districts in Los Gatos. The Town has also adopted Hillside Development Standards and Guidelines. These sets of development standards and design guidelines are used in the development and design review process for Los Gatos and complement the Town’s zoning regulations. The Hillside Development Standards and Guidelines were adopted in January 2004 and modified in 2020. The Residential Design Guidelines were updated and adopted in 2008.

Residential Design Guidelines
Residential Design Guidelines in Los Gatos address the following design characteristics for single-family and twofamily dwelling units in all zoning districts except for the RC and HR zones:
 Historic Designations. When necessitated by the designating ordinance, Historic Preservation Committee review of a development is required for developments that affect a historically designated property or are located in a historic district.
 Site Development. This section focuses on the design and layout of the housing development in relation to its site. Site planning issues addressed include site design, solar orientation, shadow effect, and easements and dedications. This section provides information on landscaping requirements, sensitivity to adjacent neighbors, and conformity to neighborhood street and sidewalk edges.  Building Design. This section focuses on the design and layout of development in relation to the surrounding neighborhood. Issues addressed include harmony and compatibility with the streetscape and surrounding structures; the scale and mass of the development including second-story additions, significant remodels, demolitions and replacement structures, exterior material and colors, building components, energy conservation, and privacy. Neighborhood compatibility for replacement structures shall be based on the following criteria:
 Existing architectural style of surrounding neighborhood.  Size of the lot on which the development is located.
 Size of homes adjacent to the development and along the street on which the development is located.
 Transitioning neighborhood.
 Impacts on the site and surrounding property.
 Landscaping/Open Space. This section addresses tree preservation in accordance with Division 2 of the Town Code for adherence to the Town’s Tree Protection Ordinance.

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

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

Hillside Development Standards and Guidelines
The Hillside Development Standards and Guidelines are consistent with the Town’s policies and complement and coordinate with the Town’s Hillside Specific Plan. These standards and guidelines apply to all areas zoned HR,

ITEM NO. 17.

Appendix C. Governmental and Non-Governmental Constraints May 2024 Appendix C C-17
RC, and some lots zoned R-1 as noted on the Town’s Hillside Area Map. The goal of these standards and guidelines is to encourage high-quality design that incorporates sustainable development and open space preservation.

The following summarizes the Hillside Development Standards and Guidelines for Los Gatos:
 Constraints Analysis and Site Selection. Developers must conduct a constraints analysis as deemed necessary by the Town, consult with neighbors, meet with Town staff to discuss the development site, and conduct a view analysis for the development site. The constraints analysis, as required by the Town, requires that developers of hillside property identify the Least Restrictive Development Area (LRDA), or areas deemed most feasible for development on hillsides. For the view analysis, developers must analyze aesthetic impacts; preserve hillside and ridgeline views; and preserve natural features, riparian corridors, and wildlife.  Site Planning. This section describes site planning standards and guidelines that minimize physical and aesthetic impacts to the site topography. Standards and guidelines discuss grading, drainage, driveways and parking, and safety regarding geologic and fire hazards.  Development Intensity. This section outlines the maximum allowable floor area of development based on lot size.
 Architectural Design. The following architectural design characteristics are addressed in this section:
 Neighbor-friendliness.
 Sustainability.
 Fire safety.
 Building height.
 Bulk and mass.
 Roofs.
 Architectural features and detailing.
 Materials and colors.
 Site Elements. The specific elements of a hillside development site are addressed:
 Fences and walls.
 Driveway entries.
 Retaining walls.
 Outdoor lighting.
 Accessory buildings, swimming pools, and sport courts.  Impervious surfaces.
 Landscape Design. Because hillside sites are more prone to erosion, landslides, mudslides, and fire and water hazards than flatter sites in Los Gatos, the following concepts are addressed in the landscaping standards and guidelines for hillside development:
 Fire safety.
 Garden and turf locations and plant selection.
 Irrigation.
 Impervious surfaces.
 Plant materials.
 Tree preservation.
 Planned Development Projects. This section describes standards and guidelines that relate specifically to hillside Planned Developments (PDs) in Los Gatos. Additional restrictions are placed on the LRDA for PDs.

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
C-18 Appendix C May 2024
Objective Design Standards
On November 15, 2022, the Town Council adopted the Objective Design Standards. The Town of Los Gatos developed Objective Design Standards for the review of multi-family housing and mixed-use development applications. This effort was in response to State legislation requiring jurisdictions to adopt objective standards and to implement them in a streamlined review of qualifying housing projects. Objective standards are defined under State law as “standards that involve no personal or subjective judgement by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal” (California Government Code, Section 65913.4).

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

Governmental Fees and Exactions
Government policy at both the State and jurisdictional levels play a major role in determining the costs of building new housing. Regulations and permitting processes that result in lengthy or uncertain development carry higher risk and increased financing. Additionally, frequent delays in the entitlement and approval process directly increase costs, such as additional architectural work, inspections, and community meetings.

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

Governmental fees can be a significant portion of the cost of housing development and can therefore be considered a constraint to housing development. Table C-5 and Table C-6 below provides all of the planning and development fees that may apply to residential development projects in Los Gatos, while Table C-4 shows how these fees are applied to three specific projects. Fees are due at the time an application is accepted by the Town, except for projects in the Affordable Housing Overlay Zone, which can waive or defer their fees as a development incentive.

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

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

Table C-4 summarizes all of the development and permit fees required for residential development in the Town, including planning, building, public works, and external agency fees. It is important to note that fees vary based on project specifics, such as project valuation, square footage, and site characteristics. The table below provides

ITEM NO. 17.

Appendix C. Governmental and Non-Governmental Constraints May 2024 Appendix C C-19
fees for a recent single-family project, mixed-use project, and multi-family project within the Town. The applicant will be required to pay approximately $101,608 in Town and external agency fees for development of a new detached single-family home. For a mixed-use project with three residential units, the total fees were $289,695.

When divided among the units, this equates to $96,565 per unit; however, the fees presented below are for the project in its entirety (including the commercial portion). For a multi-family project with three residential units, the total fees were $223,825. When divided among the units, this equates to $74,608 per unit; however, the fees presented below are for the project in its entirety. Notably, external agency fees, specifically school fees and sewer connection fees, comprise a significant portion of the total project fees (43 percent). Not only are these fees necessary to ensure ongoing provision of vital infrastructure and services, but the Town has no control over the fee amounts as they are set by the external districts.

Table C-4 Typical Fees for Single-Family and Multi-Family Development Application Fees by Town
Department
Single-Family
Detached
(2,500 sq. ft.)
Mixed-Use
Project 1
(3 residential
units)
Multi-Family
Project
(3 residential
units)
Town Fees
Planning
Permit Application Fee (flat fee) $12,908 $17,715 $17,715 Tentative Parcel Map N/A $16,814 $16,814
Consulting Architect Fee $2,500 $2,500 2 $2,500 2
Consulting Arborist Fee $2,200 $2,200 $2,200
Public Works
Grading Permit $16,061 $84,191 $84,191
Final Parcel Map N/A $4,117 $4,117
Surveyor Deposit for Final Parcel Map N/A $3,000 $3,000 Encroachment Permit $1,542 $1,542 $1,542
Public Improvement Plans/Permit N/A $29,724 $29,724
Supplemental Deposit $1,000 $1,000 $1,000
Geotech Review Fee 2 $750 $900 $900
Geotech Review Deposit $3,750 $3,600 $3,600
Performance Bond 100% 100% 100%
Labor Bond 100% 100% 100%
Building
Demolition Permit $563 N/A $563
Building Permit Fee $9,644 $9,604 $16,620
Building Permit Issuance Fee $55 $55 $165
Plan Check Fee $6,268 $6,619 $10,803
Additional Plan Check Fee (After 2
plan review cycles) $240 $600 $2,520
Electrical, Plumbing, Mechanical $1,857 $5,289 $1,065
Planning Plan Check Fee $1,940 $1,932 $3,339
Engineering Plan Check and Review $798 $795 $1,380
Construction Activities Mitigation –
Residential $1,718 $6,441 $9,327
Construction Activities Mitigation –
Garage
$790 N/A N/A

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
C-20 Appendix C May 2024
Construction Activities Mitigation –
Commercial N/A $2,943 N/A
Capital Improvement Tax $264 $991 $1,575
Underground Utility Tax $264 $991 $1,129
Storm Drainage $1,468 $2,515 $4,090
Park Fund Tax $59 $220 $251
General Plan Maintenance Fee $7,000 $6,953 $9,750
State Building Standards $56 $56 $78
NPDES $70 $70 $210
California Title 24 Part 2 Fee $1,455 $1,449 $2,505
SMIP – Category 1 Residential $182 $181 $253
SMIP – Category 2 Commercial N/A $389 $0
Non-Town Agency Fees
School Fees
Los Gatos Union School District ($3.48
per sq. ft.) $8,700 $21,631 $14,420
Campbell Union High School District
($1.44 per sq. ft.) $3,600 $8950 N/A
Sewer
Permit Fee (assuming Sewer Lateral
Inspection) $425 $5,000 $27,383
Connection Fee ($10,786 per SF unit;
$8,351 per Mixed-Use unit) ; $10,786
per MF unit)
$10,786 $25,053 $32,358
Sewer Treatment Plant Capacity Fee
($1,642 per SF unit; $1,271 per
Mixed-Use unit) ; $1,642 per MR unit)
$1,642 $11,439 $4,926
Fire Department
Fire Plan Check ($0.0016 of Valuation) $1,053 $2,225 $3,120 Totals
Subtotal - Town Fees $75,402 $215,397 $141,618
Subtotal - Non-Town Agency Fees $26,206 $74,298 $82,207 Total Fees $101,608 $289,695 $223,825
Total Fees per Unit $101,608 $96,565 $74,608
Notes:

1. Fees are for the total development, including the commercial portion of the project.

Due to the existing fee structure, it is difficult to separate out fees for residential units from the project as a whole.

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

ITEM NO. 17.

Appendix C. Governmental and Non-Governmental Constraints May 2024 Appendix C C-21
Table C-5 Community Development Department Fees Effective July 1, 2022 Application
Fee
4% Permit
Tracking Fee
10%
General
Plan
Update
10% Advance
Planning
Special
Project
Engineering
Dev Review
Services Fee
Total Fee
1 ZONING APPROVALS
A Architecture and Site Applications
1 Development Review Committee (DRC) Approval
a. New single-family
detached (HR & RC
zone)
$9,508.00 $380.32 N/A $950.80 $4,396.00 $15,235.12
b. New single-family
detached (HR & RC
zones) per unit, as
part of a Planned
Development
$6,603.00 $264.12 N/A $660.30 $4,393.00 $11,920.42
c. New single-family
or two-family units $6,552.00 $262.08 N/A $655.20 $4,394.00 $11,863.28 d. New single-family
or two-family (any
other zone) per unit,
as part of a Planned
Development
$4,682.00 $187.28 N/A $468.20 $4,398.00 $9,735.48
e. Minor projects (a
development
proposal that does
not significantly
change the size,
mass, appearance or
neighborhood
impact of a
structure, property
or parking lot)
$2,375.00 $95.00 N/A $237.50 $3,374.00 $6,081.50
2 Planning Commission Approval
a. Supplemental fee
for DRC applications
as determined in
Section 1.A.(1) or
minor residential
development
applications that
require Planning
Commission
approval
$3,355.00 $134.20 N/A $335.50 $1,225.00 $5,049.70
b. New two-family
unit $9,994.00 $399.76 N/A $999.40 $4,396.00 $15,789.16 c. New
nonresidential $11,471.00 $458.84 N/A $1,147.10 $4,396.00 $17,472.94 d. New multi-family $10,428.00 $417.12 N/A $1,042.80 $4,394.00 $16,281.92 e. All other $5,815.00 $232.60 N/A $581.50 $4,396.00 $11,025.10 B Conditional Use Permits
1 Conditional Use
Permit $6,726.00 $296.04 N/A $672.60 $1,431.00 $9,098.64 C Variance $4,947.00 $197.88 N/A $494.70 $1,431.00 $7,070.58 D Rezoning (other than Planned Development

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
C-22 Appendix C May 2024
Application
Fee
4% Permit
Tracking Fee
10%
General
Plan
Update
10% Advance
Planning
Special
Project
Engineering
Dev Review
Services Fee
Total Fee
1 Without General
Plan or Specific Plan
Amendment
Actual Cost
($5,000 min.) $200 (min.) $500 (min.) $500 (min.) N/A $6,200.00 2 With General Plan or
Specific Plan
Amendment
Actual Cost
($7,000 min.) $280 (min.) $700 (min.) $700 (min.) N/A $8,680.00 E Planned Development
1 Without General
Plan or Specific Plan
Amendment
Actual Cost YES YES YES N/A Varies
2 Without General
Plan or specific Plan
Amendment (HR or
RC Underlying Zone)
Actual Cost YES YES YES N/A Varies
3 With General Plan or
Specific Plan
Amendment
Actual Cost YES YES YES N/A Varies
4 With General Plan or
Specific Plan
Amendment (HR or
RC Underlying Zone)
Actual Cost YES YES YES N/A Varies
5 Town Council
Modification to a
Planned
Development
Actual Cost
($5,000 min.) $200 (min.) $500 (min.) $500 (min.) N/A $6,200.00 6 DRC Modification to
a Planned
Development Zone
Actual Cost
($3,000 min.) $120 (min.) $300 (min.) $300 (min.) N/A $3,720.00 7 Publication costs for the Planned Development Ordinance shall be paid by the applicant. 8 Transcription Fee of
PC Minutes
Actual Cost
($500 Deposit) N/A N/A N/A N/A Varies
F Minor Residential
Development $2,375.00 $95.00 N/A $237.50 N/A $2,707.50
G Agricultural Preserve
Withdrawal $4,035.00 $161.40 N/A $403.50 N/A $4,599.90
H Planning Division Certificates of Use and Occupancy
3 Use/occupancy
clearance if
Conditional Use
Permit is required or
occupancy of a new
secondary dwelling
unit
No fee No fee No fee No fee No fee No fee
M Mobile Home Park
Conversion Permit
Actual Cost
($5,000 deposit) Varies Varies Varies N/A Varies
N General Plan/Town
Code Amendments
Actual Cost
($5,000 deposit) N/A N/A N/A N/A Varies
O Administrative Land Use Permit
P Two-Unit Housing
Development $1,340.00 $53.60 N/A $134.00 N/A $1,527.60
Q Urban Lot Split $1,340.00 $53.60 N/A $134.00 N/A $1,527.60 2 SUBDIVISIONS

ITEM NO. 17.

Appendix C. Governmental and Non-Governmental Constraints May 2024 Appendix C C-23
Application
Fee
4% Permit
Tracking Fee
10%
General
Plan
Update
10% Advance
Planning
Special
Project
Engineering
Dev Review
Services Fee
Total Fee
A Lot Line Adjustment
(DRC Approval) $2,254.00 $90.16 N/A $225.40 $3,782.00 $6,351.56 B 4 Lots or Less (DRC
Approval) $9,081.00 $363.24 $908.10 $908.10 $4,194.00 $15,454.44 C
4 Lots or Less (as
part of a Planned
Development) (DRC
Approval)
$3,750.00 $150.00 $375.00 $375.00 $4,398.00 $9,048.00
D 5 Lots or More $10,230.00 $409.20 $1,023.00 $1,023.00 $5,420.00 $18,105.20 E
5 Lots or More (as
part of a Planned
Development) (DRC
Approval)
$4,397.00 $175.88 $439.70 $439.70 $5,420.00 $10,872.28
F Vesting Tentative
Map
Actual Cost
($500 deposit) N/A N/A N/A N/A Varies
G
Lot Merger and
Reversion to Acreage
(DRC Approval)
$1,117.00 $44.68 $ N/A $111.70 $3,781.00 $5,054.38
H Condominium $7,884.00 $315.36 $788.40 $788.40 N/A $9,776.16 I
Condominium (as
part of a Planned
Development)
$3,750.00 $150.00 $375.00 $375.00 N/A $4,650.00
J
Certificate of
Compliance (DRC
Approval)
$3,257.00 $130.28 N/A $325.70 $2,350.00 $6,062.98
K
VTM applications
that require Town
Council
approval and/or DRC
applications that
require Planning
Commission
approval. This
fee supplements the
above established
fees.
$2,991.00 $119.64 N/A $299.10 N/A $3,409.74
3 MISCELLANEOUS APPLICATION FEES
A
Time Extensions to
Approved
Applications
(excluding fees based
on actual cost)
50% of Current
Fee Varies Varies Varies Varies Varies
B
Modification of
Approved
Application
(excluding fees based
on actual cost)
75% of Current
Fee Varies N/A Varies Varies Varies
D
Conceptual
Development
Advisory Committee
Review
$2,966.00 $118.64 N/A $296.60 N/A $3,381.24

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
C-24 Appendix C May 2024
Application
Fee
4% Permit
Tracking Fee
10%
General
Plan
Update
10% Advance
Planning
Special
Project
Engineering
Dev Review
Services Fee
Total Fee
1 CDAC Special
Noticing
Actual Cost
($500 Deposit) N/A N/A N/A N/A Varies
4 ENVIRONMENTAL ASSESSMENT FEES
A Categorical
Exemption No Fee N/A N/A N/A N/A No Fee
B Initial Study
(Deposit)* $5,000.00 N/A N/A N/A Yes Varies
C
Draft Initial Study
Review Fee (or actual
cost if part of a
Planned
Development,
General Plan and/or
Town Code
Amendment)
$2,950.00 N/A N/A N/A $2,045.00 $4,995.00
D Environmental
Impact Report (EIR) Consultant’s Fee N/A N/A N/A N/A Varies E Draft EIR Review Fee $12,184 Plus
10% EIR Cost N/A N/A N/A Varies Varies
F Impact Monitoring
Program (AB3180)
Actual Cost on
an hourly basis
plus cost of
Consultant (if
necessary)
N/A N/A N/A N/A Varies
5 OTHER
A Pre-application
Conference Fee No fee Varies Varies Varies N/A Varies
C Peer/Technical
Review
Actual Cost
($2,000 deposit) N/A N/A N/A N/A Varies
D
Fees for Additional
Tech Review and/or
DRC Review DRC
beyond 3 meetings,
Planning Commission
hearing beyond 2
meetings, Town
Council hearing
beyond 1
meeting
Actual Cost N/A N/A N/A N/A Varies
F Laserfiching Files $1.25 per Sheet N/A N/A N/A N/A Varies G Building Permit Plan
Check Fee
20% of Building
Fee N/A N/A N/A N/A Varies
H Surcharges
1 Permit Tracking
Maintenance and
Update Surcharge
4% of
Development
Application Fee
N/A N/A N/A N/A Varies
2 General Plan Update
Surcharge
.5% of Bldg. Valuation for new
construction and additions or
10% of zone change & subdivision
fee
N/A N/A N/A Varies
3 Advanced Planning
Projects
10% of
Development
Application Fee
N/A N/A N/A N/A Varies

ITEM NO. 17.

Appendix C. Governmental and Non-Governmental Constraints May 2024 Appendix C C-25
Application
Fee
4% Permit
Tracking Fee
10%
General
Plan
Update
10% Advance
Planning
Special
Project
Engineering
Dev Review
Services Fee
Total Fee
4 Administrative Fee
10% of
Consultant
Deposit
N/A N/A N/A N/A Varies
I
Applications for
Work Unlawfully
Completed
Double Current
Application Fee N/A N/A N/A N/A Varies
J Consultation Actual Cost on
an hourly basis
N/A N/A N/A N/A Varies
N Appeals
1 Fee to Appeal
Planning Commission
Decision to Town
Council
$464 per
residential
$1,867 per
commercial,
multi-family or
tentative
map
N/A N/A N/A N/A Varies
2 Fee to remand
applications from
Town Council to
Planning Commission
where no error was
made by Planning
Commission
Actual Cost N/A N/A N/A N/A Varies
3 Fee to Appeal
Director of
Community
Development or
Development Review
Committee decision
to Planning
Commission
$234 per
residential
$934 per
commercial
N/A N/A N/A N/A Varies
4 Tree Appeals $95.00 N/A N/A N/A N/A $95.00
5 Appeal Transcription
fee of Planning
Commission minutes
Actual Cost
($500 Deposit) N/A N/A N/A N/A Varies
O Research Services
Minimum Charge
Actual Cost
($200 Deposit) N/A N/A N/A N/A Varies
P Zoning Research
1 Basic zoning letter $164.00 N/A N/A N/A N/A $164.00
2 Legal nonconforming
verification
$688.00 N/A N/A N/A N/A $688.00
3 Reconstruction of
legal non-conforming
structures
(Burndown Letter)
$292.00 N/A N/A N/A N/A $292.00
Q Annexations
1 One Lot $3,188.00 $127.52 N/A N/A N/A $3,315.52
2 Two Lots $3,188.00 $63.76 N/A N/A N/A $1,657.76
3 Three Lots $3,188.00 $42.56 N/A N/A N/A $1,106.56
4 Four Lots $3,188.00 $32.00 N/A N/A N/A $832.00

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
C-26 Appendix C May 2024
Application
Fee
4% Permit
Tracking Fee
10%
General
Plan
Update
10% Advance
Planning
Special
Project
Engineering
Dev Review
Services Fee
Total Fee
5 Five Lots or more $3,188.00 $25.40 N/A N/A N/A $660.40 R Special Noticing Actual Cost
($500 deposit) N/A N/A N/A N/A Varies
Source: Town of Los Gatos Comprehensive Fee Schedule Fiscal Year 2022/23.

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

Table C-6 Additional Development Fees Effective July 1, 2022 Building Permit Fees Fee
Fee for issuing/reinstating a Building Permit $58.00
Additional Building Permit Fee $32.00
Demolition Permit Residential: $281.00
Commercial: $492.00
$1.00 to $500.00 $35.00
$501.00 to $2,000.00 $35.00 for the first $500.00 plus $4.53 for each additional $100.00 or fraction thereof,
to and including $2,000.00
$2,001.00 to $25,000.00 $103.00 for the first $2,000.00 plus $20.82 for each additional $1,000.00 or fraction
thereof, to and including $25,000.00
$25,001.00 to $50,000.00
$582.00 for the first $25,000.00 plus $15.02
for each additional $1,000.00 or fraction
thereof, to and including $50,000.00
$50,001.00 to $100,000.00
$957.00 for the first $50,000.00 plus $10.41
for each additional $1,000.00 or fraction
thereof, to and including $100,000.00
$100,001.00 to $500,000.00 $1,478.00 for the first $100,000.00 plus $8.32 for each additional $1,000.00 or fraction
thereof, to and including $500,000.00
$500,001.00 to $1,000,000.00 $4,808.00 for the first $500,000.00 plus $7.06 for each additional $1,000.00 or fraction
thereof, to and including $1,000,000.00
$1,000,001.00 and over $8,339.00 for the first $1,000,000.00 plus $4.68 for each additional $1,000.00 or
fraction thereof
Special Services & Inspections
Inspection outside normal business hours (4 hr. minimum) $203.00/hr.

Re-inspection fees $169.00/hr.

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

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

ITEM NO. 17.

Appendix C. Governmental and Non-Governmental Constraints May 2024 Appendix C C-27
Building Permit Fees Fee
Services for which no fee is specifically indicated (1/2 hr. minimum) $169.00/hr.

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

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

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

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

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

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

Masonry $90.00/sq.ft.

Decks/Balcony $50.00/sq.ft.

Wood Deck $21.00/sq.ft.

Re-roofs $3.00/sq.ft.

Retaining Walls $113.00/sq.ft.

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

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

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

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

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

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

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

Re-inspection fee $169.00/hr.

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
C-28 Appendix C May 2024
Building Permit Fees Fee
Nonresidential appliances/new circuits (medical & dental devices, food, beverage, drinking fountains, laundry machines, or other similar equipment) NOTE: for other types of air conditioners and other motordriven appliances having larger electrical ratings, see Generators/Motors $8.00
Photovoltaic system (residential) $90.00
Solar systems (including controls) $90.00
Power apparatus (generators, transformers, A/C, heat pumps, baking equipment)
Up to 10 KV, each $17.00
Over 10 KV not over 50 KV, each $34.00
Over 50 KV and not over 100 KV, each $67.00
Over 100 KV, each $89.00
Motors Up to 10 hp $17.00
Up to 25 hp $34.00
Up to 55 hp $67.00
Over 55 hp $97.00
Transformers Up to 5 KVA $17.00
Up to 10 KVA $34.00
Up to 50 KVA $56.00
Over 50 KVA $82.00
Busways/conduits (per 100 ft) $8.00
Service equipment 200 amps or less $83.00
201 to 999 amps $114.00
Sub-panels $40.00
Installation of spas or saunas $40.00
Other Electrical Fees
Duplicate job card $26.00
Permit extension (applies to permits that have not expired) $83.00 Mechanical Permit Fees
Fee for issuing/reinstating a Mechanical Permit $58.00
Additional Mechanical Permit Fee $26.00
New Residential Construction (new buildings only, including garages) $.11 sq. ft Commercial Construction $.08 sq. ft
Plan Review & Re-inspection Fees
Plan review fee 25% of Mechanical Permit Fee
Additional plan review $161.00/hr.

Re-inspection fee $169.00/hr.

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

ITEM NO. 17.

Appendix C. Governmental and Non-Governmental Constraints May 2024 Appendix C C-29
Building Permit Fees Fee
Other Mechanical Fees
Duplicate job card $26.00
Permit extension (applies to permits that have not expired) $83.00 Plumbing Permit Fees
Fee for issuing/reinstating a Plumbing Permit $58.00
Additional Plumbing Permit Fee $26.00
New Residential Construction (new buildings only, including garages) $.11 sq. ft Commercial Construction $.08 sq. ft
Plan Review & Re-inspection Fees
Plan review fee 25% of Plumbing Permit Fee
Additional plan review $161.00/hr.

Re-inspection fee $169.00/hr.

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
C-30 Appendix C May 2024
Building Permit Fees Fee
$20,000.00 to $80,000.00 $1,589.00 plus 6.5% of valuation Greater than $80,000.00 $5,719.00 plus 4.0% of valuation Work In or Use of Public Right of Way
Encroachment Permit - Residential Work up to $4,000.00 - $323.00 Each additional $2,000.00 - $169.00
Encroachment Permit - Collector/Arterial Streets** Work up to $4,000.00 - $1,673.00 Each additional $2,000.00 - $365.00
Outside contractor underground utility locating surcharge (actual cost for outside contractor inspection fee may change)
$95.00
Temporary Encroachment Permit $159.00
Dumpster Permit $159.00
Storage Permit $159.00***
* Work done at night or on weekends shall be charged the actual costs of staff ** Single-family residences located along collector and arterial streets to be charged the residential fees above NPDES
Inspection Fee - Grading Permits Single Family Residential $773.00 Commercial or Multi Family Residential
$1,202.00
Inspection Fee - Encroachment Permits and Some Storage Permits Single Family Residential $212.00 Commercial or Multi Family Residential
$344.00
Plus $514.00 per LID facility
Inspection of Storm Water Treatment Measures $530.00 per facility Annual Stormwater/Limited Impact Development (LID) Permit Per Visit and 1st facility inspection $514.00 Every additional facility inspection $169.00
C-3 Permit Hydrologic Calculation Fully allocated hourly rate for all personnel plus any outside cost and initial deposit of
$3,750.00
Engineering Subdivision Map Checking
1-4 lots $3,023.00*
5 or more lots $4,231.00*
*Plus, initial $3,000 surveyor deposit. Additional deposit(s) of actual surveyor costs may be required for larger projects than 5 or more lots, additional map check review(s), or overall complexity of the map.

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

Actual cost for staff time when analysis
exceeds two hours.

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

ITEM NO. 17.

Appendix C. Governmental and Non-Governmental Constraints May 2024 Appendix C C-31
Building Permit Fees Fee
Multiple family dwelling units - initial unit
$4,477.00/ac.

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

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

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

Curb and Gutter $100.00/lf.

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

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
C-32 Appendix C May 2024
The following table provides fee comparisons of jurisdictions located in Santa Clara County.

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

Source: Cities Association of Santa Clara.

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

Table C-8 Fees as a Percentage of Total Development Costs Jurisdiction Single-Family Small Multi-family Large Multi-family Campbell 2.6% 2.7% 2.6%
Cupertino 2.9% 10.3% 10.5%
Gilroy 1.5% 5.3% 5.6%
Los Altos Hills 3.1% N/A N/A
Los Gatos 1.2% 0.8% 0.5%
Milpitas 2.8% 9.8% 8.5%
Monte Sereno 0.7% 0.6% 0.6%
Morgan Hill 2.0% 5.5% 5.2%
Mountain View 3.3% 9.2% 11.8%
San Jose 0.4% 3.1% 3.3%
Santa Clara 2.6% 1.0% 0.4%
Saratoga 1.4% 2.3% 2.2%
Sunnyvale 4.8% 16.8% 14.0%
Unincorporated County 0.9% N/A NA
Note: Calculation uses a county-wide average total development cost. Source: SCCPC, 2022 citiesassociation.org/documents/constraints-survey-datasummary-2022.

Source: Town of Los Gatos.

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

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

Based on the Santa Clara County Planning Collaborative survey results and an analysis on housing development

ITEM NO. 17.

Appendix C. Governmental and Non-Governmental Constraints May 2024 Appendix C C-33
costs performed by Century Urban, a San Francisco based real estate consulting firm, the fees represent approximately 1.2 percent of total development costs for a single-family home, 0.8 percent for a 10-unit multifamily development, and 0.5 percent for a 100-unit multi-family development. The fee structure does not disproportionally burden multi-family housing.

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

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

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

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

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

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

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

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

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
C-34 Appendix C May 2024
the community of a forthcoming land use hearing. The placement of story poles is extremely helpful and important during the Town’s review of applications for new development. Story poles enhance the understanding of the project for Town residents, staff, advisory bodies, and decision-makers. However, the cost of story pole and netting installation, maintenance throughout the public hearing process, and additional time added to the process for installation can be viewed as a constraint for development. The Housing Element includes a program to commit to reviewing the Town’s Story Pole and Netting Policy and exploring options for residential or mixeduse projects with affordable housing to reduce the associated cost of installing story poles. The Planning Commission began discussions regarding changes to the Story Pole and Netting Policy with public meetings on April 26, 2023, and May 24, 2023. The Planning Commission recommendation for modifications to the Story Pole Policy was considered by Town Council on August 1, 2023, and developed the following preliminary modifications:
 Waive story pole requirements for projects with 30 percent Below Market Price housing or 20 percent Low Income or Very Low-Income housing and in its place require signage with a QR code that links to renderings and videos of the project.
 Retain existing story pole guidelines for the Hillsides and sites in the Historic Inventory.  Require story poles for single-family residential projects if the project includes a new two-story house or second story addition where both of the adjacent neighbors are single-story homes or if there is a request for variance or exception to physical development standards.  Replace mesh netting requirement with double flagging as the default unless the applicant prefers to use mesh netting.
 Do not require full story poles for multi building projects, instead showing just the outside perimeter and the height of the tallest building.

On December 5, 2023, the Town Council modified the Story Pole Policy to further reduce the associated costs of installing story poles, by providing an option to provide video rendering or other visual methods in place of story poles for all multi-family and mixed-use projects to reduce constrains/cost and increase approval certainty.

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

On May 4, 2021, the Town Council adopted Ordinance 2318 amending Chapter 25 of the Town Code to establish a public art requirement for private developments. The requirement for public art applies to the following types of development:
(a) New commercial developments (including mixed-use projects), including new construction, and additions and remodels that add more than 50 percent square footage; and (b) New residential projects of three or more units, including new construction, and additions and remodels that add more than 50 percent square footage.

I Notwithstanding subsections (a) and (b) above, this Chapter shall not apply to:
(i) Affordable housing developments, or, if affordable housing is a part of the development, the affordable housing units shall be subtracted from the valuation of the project as in subsection (d) below;
(ii) Historic renovations;
(iii) Repair or reconstruction of structures damaged by flood, fire, wind, earthquake, or other disaster; (iv) Seismic retrofit projects;
(v) Single family and two-family residential units;
(vi) Accessory dwelling units or junior accessory dwelling units; (vii) Any project exempted by Federal or State law;

ITEM NO. 17.

Appendix C. Governmental and Non-Governmental Constraints May 2024 Appendix C C-35
(viii) Municipal facilities; and
(ix) Buildings or structures primarily used for religious worship.

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

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

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

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

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

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
C-36 Appendix C May 2024
Processing of a typical single- or multi-family housing or mixed-use housing project include the following steps:

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

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

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

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

In addition to the staff listed above, applications may also be reviewed by the following Town Committees, consultants, or outside agencies when deemed appropriate:
 Town’s Historic Preservation Committee
 Town’s Environmental Consultant
 Town’s Consulting Architect
 Town’s Consulting Arborist
 Town’s Consulting Landscape Architect (WELO)
 Town’s Geotechnical Peer Reviewer
 Town’s Consulting Traffic Consultant
 Santa Clara Valley Water District
 County of Santa Clara – Health Department

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

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

5. Public Hearings: If a discretionary application is determined to require a public hearing, Division 7 of Chapter 29 of the Town Code assigns which hearing body has the authority to issue decisions for

ITEM NO. 17.

Appendix C. Governmental and Non-Governmental Constraints May 2024 Appendix C C-37
development applications. There are three types of public hearing bodies in the Town: Development Review Committee (DRC); Planning Commission (PC); and Town Council (TC).

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

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

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

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

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

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

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

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
C-38 Appendix C May 2024
Code. The TC reviews applications that require a change in the General Plan or Zoning Code, and appeals from the PC.

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

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

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

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

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

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

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

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

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

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

ITEM NO. 17.

Appendix C. Governmental and Non-Governmental Constraints May 2024 Appendix C C-39
Table C-9 Local Development Processing Time Frame
Application Type Length of Approval
Architecture and Site Application for a single- or
multi-family residential project
Three to six months *
Architecture and Site Application for a hillside
residential project
Four to six months *
Architecture and Site Application for a mixeduse project Four to eight months * Conditional Use Permit Application Two to four months
Subdivision Application Two to four months
Variance Application Two to four months
* Note: With environmental review, the process generally takes six to 18 months, depending on the size, complexity, level of CEQA review required.

Source: Town of Los Gatos.

Processing Time Relative to Santa Clara County
The Town’s processing time for permits and development review is comparable to other jurisdictions in Santa Clara County. Qualifying affordable housing developments (SB 35) are eligible for ministerial review, which significantly reduces the length of the review process. The Town’s processing times are not considered an undue constraint on housing development. In comparison to jurisdictions within Santa Clara County, the processing times for applications in the Town are generally aligned with the approximate time frames, as provide in Table C10, below. Processing times represent general applications, and processing time may increase due to a variety of factors including the complexity of the site, applicant responsiveness and completeness of application materials, and studies required for environmental review. All jurisdictions face these factors which can modify the permit processing time due the scope the project and site conditions.

Table C-10 Processing Times (in months)
Jurisdiction ADU
Process
Ministerial
By-Right
Discretionary
By-Right
Discretionary
(Development
Review
Committee)
Discretionary
(Planning
Commission)
Discretionary
(Town
Council)
Campbell 1 1 3 N/A 5 8
Cupertino 1 to 3 1 to 6 2 to 4 2 to 4 3 to 6 6 to 12
Gilroy 1 to 2 1 to 2 2 to 4 N/A 4 to 5 5 to 6
Los Altos Hills 1 to 2 0.5 to 2 2 to 3 3 to 4 4 to 6 5 to 8 Los Gatos 1 to 2 1 to 2 1 to 2 2 to 4 4 to 6 6 to 12
Milpitas 1 to 3 1 to 3 2 to 4 3 to 4 4 to 6 6 to 12
Monte Sereno 0.75 0.75 1 1 to 2 1 to 2 1 to 2
Morgan Hill 1 to 2 1 to 3 *2 to 3 2 to 3 4 to 6 4 to 6
Mountain View 3 to 5 4 to 6 2 to 3 *6 to 18 N/A 12 to 24 San Jose 2 1 to 3 7 7 7 to 11 5 to 12
Santa Clara 0 to 1 0 to 1 0 to 3 4 to 9 6 to 9 6 to 12
Saratoga 1 1 to 2 2 to 3 N/A 4 to 6 6 to 12
Sunnyvale 1 to 3 1 to 3 3 to 6 6 to 9 9 to 18 9 to 18
Unincorporated
County 4 to 6 6 to 8 9 to 12 12 to 15 15 to 18 15 to 18 Entitlements Only. Source: SCCPC, 2022 citiesassociation.org/documents/constraints-survey-data-summary-2022.

Source: Town of Los Gatos.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
C-40 Appendix C May 2024
In response to changes in State law as of January 1, 2023, and as part of the Town’s ongoing efforts to increase efficiency for permit reviews, the Town’s Planning and Building Divisions have developed a new Building permit application form and process. Residents who wish to build a new ADU or JADU can now submit a single application form and proceed through a single plan review process in order to obtain their Building Permit.

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

Approval Body and Appellant Body for Housing Permits
The following table indicates the approval body and appellant body for each housing permit type.

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

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

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

ITEM NO. 17.

Appendix C. Governmental and Non-Governmental Constraints May 2024 Appendix C C-41
Discretionary Permits
Discretionary permits require review and approval by a decision maker to allow a specific type of land use and/or allow for construction, modification, or use to a building. Examples of discretionary review include residential subdivisions, new residences, planned developments, and mixed-use residential development. As part of the discretionary review process, the project will be reviewed in conformance with applicable ordinances and regulations including the Town’s General Plan, Zoning Ordinance, and when applicable the Town’s Residential Design Guidelines (non-hillside), Hillside Development Standards and Guidelines (hillside), Objective Design Standards for Qualifying Multi-Family and Residential Mixed-Use Developments, Affordable Housing Overlay Design Guidelines, planned developments, and specific plans. In addition, the project will be reviewed for compliance with the California Environmental Quality Act (CEQA) which may require preparation of an environmental document and a public review period. A public hearing may also be required to issue a discretionary permit. Examples of discretionary permits related to housing include: Architecture and Site Applications; Conditional Use Permits; Variances; Subdivisions; Rezones; and General Plan Amendments.

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

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

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

The DRC may be the approval authority for discretionary applications, such as an Architecture and Site application dependent upon the scope of the project and whether the project complies with the Residential Design Guidelines and/or Hillside Development Standard and Guidelines. Should a project request an exception(s) to the referenced Town documents, the discretionary application may go straight to the Planning Commission as the deciding body. Pursuant to Town Code Section 29.20.150, the approving body may shall consider the following factors in reviewing an Architecture and Site application:
(1) Considerations relating to traffic safety and traffic congestion. The effect of the site development plan on traffic conditions on abutting streets; the layout of the site with respect to locations and dimensions of vehicular and pedestrian entrances, exits, drives, and walkways; the adequacy of off-street parking facilities to prevent traffic congestion; the location, arrangement, and dimension of truck loading and unloading facilities; the circulation pattern within the boundaries of the development, and the surfacing, lighting and handicapped accessibility of off-street parking facilities. a. Any project or development that will add traffic to roadways and critical intersections shall be analyzed, and a determination made on the following matters:

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

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

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

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

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

Any project receiving Town determination subsection (1) b.1. may proceed. Any project receiving Town determination subsection (1) b.2. must be modified or denied if the deciding body determines that the impact is unacceptable. In determining the acceptability of a traffic impact, the deciding body shall consider if the project's benefits to the community override the traffic impacts as determined by specific sections from the general plan and any applicable specific plan.
(2) Considerations relating to outdoor advertising. The number, location, color, size, height, lighting and landscaping of outdoor advertising signs and structures in relation to the creation of traffic hazards and the appearance and harmony with adjacent development. Specialized lighting and sign systems may be used to distinguish special areas or neighborhoods such as the downtown area and Los Gatos Boulevard.
(3) Considerations relating to landscaping. The location, height, and materials of walls, fences, hedges and screen plantings to ensure harmony with adjacent development or to conceal storage areas, utility installations, parking lots or unsightly development; the planting of ground cover or other surfacing to prevent dust and erosion; and the unnecessary destruction of existing healthy trees. Emphasize the use of planter boxes with seasonal flowers to add color and atmosphere to the central business district. Trees and plants shall be approved by the Director of Parks, Forestry and Maintenance Services for the purpose of meeting special criteria, including climatic conditions, maintenance, year-round versus seasonal color change (blossom, summer foliage, autumn color), special branching effects and other considerations.
(4) Considerations relating to site layout. The orientation and location of buildings and open spaces in relation to the physical characteristics of the site and the character of the neighborhood; and the appearance and harmony of the buildings with adjacent development. Buildings should strengthen the form and image of the neighborhood (e.g., downtown, Los Gatos Boulevard, etc.). Buildings should maximize preservation of solar access. In the downtown, mid-block pedestrian arcades linking Santa Cruz Avenue with existing and new parking facilities shall be encouraged, and shall include such crime prevention elements as good sight lines and lighting systems. (5) Considerations relating to drainage. The effect of the site development plan on the adequacy of storm and surface water drainage.
(6) Considerations relating to the exterior architectural design of buildings and structures. The effect of the height, width, shape and exterior construction and design of buildings and structures as such factors relate to the existing and future character of the neighborhood and purposes of the zone in which they are situated, and the purposes of architecture and site approval. Consistency and compatibility shall be encouraged in scale, massing, materials, color, texture, reflectivity, openings and other details. (7) Considerations relating to lighting and street furniture. Streets, walkways, and building lighting should be designed so as to strengthen and reinforce the image of the Town. Street furniture and equipment, such as lamp standards, traffic signals, fire hydrants, street signs, telephones, mailboxes, refuse receptacles, bus shelters, drinking fountains, planters, kiosks, flag poles and other elements of the street environment should be designated and selected so as to strengthen and reinforce the Town image. (8) Considerations relating to access for physically disabled persons. The adequacy of the site development plan for providing accessibility and adaptability for physically disabled persons. Any improvements to a nonresidential building where the total valuation of alterations, structural repairs or additions exceeds a threshold value established by resolution of the Town Council, shall require the building to be modified to meet the accessibility requirements of title 24 of the California Administrative Code adaptability and accessibility. In addition to retail, personal services and health care services are not allowable uses on

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non-accessible floors in new nonresidential buildings. Any change of use to retail, health care, or personal service on a non-accessible floor in a nonresidential building shall require that floor to be accessible to physically disabled persons pursuant to the accessibility requirements of title 24 of the California Administrative Code and shall not qualify the building for unreasonable hardship exemption from meeting any of those requirements. This provision does not affect lawful uses in existence prior to the enactment of this chapter. All new residential developments shall comply with the Town's adaptability and accessibility requirements for physically disabled persons established by resolution. (9) Considerations relating to the location of a hazardous waste management facility. A hazardous waste facility shall not be located closer than 500 feet to any residentially zoned or used property or any property then being used as a public or private school primarily educating persons under the age of 18.

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

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

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

Discretionary Review - Conditional Use Permit
The Conditional Use Permit (CUP) process provides additional consideration to ensure compatibility for uses that have a potential to have a greater impact on surrounding uses. The following residential development types require a CUP:
 Residential units as part of a mixed-use project – Zones: O, C-1, C-2, and CH  Mobile home park – Zone: RM
 Caretaker residence – Zones: RC and HR
 Conversion of a mobile home park to any other use – Zones: R-M and RHM  Live/work units – Zones: O, C-1, C-2, CH and LM
The DRC or PC are the approval authority for CUP applications, depending on the scope of the project. Pursuant to Town Code Section 29.20.190, the approval authority must make the following findings when granting a CUP:
(1) The proposed uses of the property are essential or desirable to the public convenience or welfare; (2) The proposed uses will not impair the integrity and character of the zone; (3) The proposed uses would not be detrimental to public health, safety or general welfare; and (4) The proposed uses of the property are in harmony with the various elements or objectives of the general plan and the purposes of this chapter.
(5) A hazardous waste facility proposal is subject to the California Health and Safety Code, Article 8.7, Section 25199—25199.14 and shall be consistent with the Santa Clara County Hazardous Waste Management Plan.

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

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

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

9. SB 35 Streamlining
(Government Code section 65913.4) allows qualifying development projects with a specified proportion of affordable housing units to move more quickly through the local government review process. The bill creates a streamlined approval process for qualifying infill developments in localities that have failed to meet their RHNA, requiring a ministerial approval process, removing the requirement for CEQA analysis, and removing the requirement for discretionary entitlements granted by the Planning Commission.

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

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

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

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

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