PREPARED BY: Sean Mullin, AICP
Planning Manager
Reviewed by: Town Manager, Town Attorney, Community Development Director, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 03/18/2024
ITEM NO: 10
DESK ITEM
DATE: March 18, 2024
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Accept the Annual Progress Report for General Plan and Housing Element Implementation.
REMARKS:
Attachment 2 includes public comments received between 11:01 a.m., Monday, March 17, 2025, and 11:00 a.m., Tuesday, March 18, 2025.
Staff offers the following clarification to the points raised in Attachment 2 that pertain to the Town’s Annual Progress Report.
Immediately correct Table D
The Annual Progress Report (APR) before the Council is reporting on 2024 housing unit production and program implementation. None of the SB 330/Builder’s Remedy projects were considered by Planning Commission or Town Council in 2024. Table D in the APR accurately reflects the Town’s efforts on implementation of Program C, No Net Loss, in 2024 and no changes are necessary.
For clarification, one SB 330 project, the Los Gatos Lodge site, was considered by the Planning Commission on February 12, 2025, and approved by the Town Council on March 4, 2025. The 155 housing units approved with this project are not included in the 2024 APR and will not be reported until the 2025 APR, in April of next year. As provided in the analysis in the Planning Commission Staff Report of February 12, 2025, this project provides fewer Very Low, Low, and Moderate Income units than anticipated in the Sites Inventory of the Housing Element, but more Above Moderate Income units, producing a net cumulative deficit of 105 units for the site. The cumulative impact of the project on the capacity of the Housing Element allows the Town to maintain a positive surplus in each income category. The remaining capacity of the PAGE 2 OF 3
SUBJECT: Annual Progress Report for General Plan and Housing Element Implementation DATE: March 13, 2024
Housing Element is adequate to meet the Town’s remaining RHNA requirements. The No Net Loss findings were made, and the Town is not required to identify additional sites to accommodate the remaining RHNA as a result of this project.
The North Forty Phase II project has not been considered by either the Planning Commission or the Town Council to date. It is tentatively scheduled for consideration by the Planning Commission in April 2025, with Town Council consideration to follow.
In conclusion, since no net loss has not been triggered to date, there is no need to report anything related to initiating no net loss rezoning efforts in Table D for the 2024 reporting year.
Staff is closely monitoring the impact each project will have relative to no net loss, and will provide that analysis in the staff reports to the Planning Commission and Town Council.
Initiate rezoning efforts as required
As stated above, no net loss has not been triggered to date and rezoning efforts are not required. Staff anticipates that no net loss will be triggered is the North Forty Phase II is approved and are considering options for rezoning efforts to address no net loss when it is triggered.
Attachment previously received with the March 13, 2025, Staff Report:
1. 2024 General Plan Annual Progress Report, with Exhibit A Attachment Received with the March 18, 2025, Desk Item Report:
2. Public comments received between 11:01 a.m., Monday, March 17, 2025, and 11:00 a.m., Tuesday, March 18, 2025
From:
Sent: Monday, March 17, 2025 4:16 PM
To: Clerk <[email protected]>
Cc: Town Manager <[email protected]>; Matthew Hudes <[email protected]>; Mary Badame <[email protected]>; Rob Rennie <[email protected]>; Rob Moore <[email protected]>; Maria Ristow <[email protected]>; Katy Nomura <[email protected]>; Gabrielle Whelan <[email protected]> Subject: RE: TC Meeting 3-18-25, Agenda Item 10 – Annual Housing Element Progress Report plus 3 attachments
[EXTERNAL SENDER]
Dear Honorable Mayor and Council Members,
We appreciate the opportunity to provide comments on the Staff report regarding the Annual Housing Element Progress Report.
Adoption of the 2023-2031 Housing Element on January 30, 2023 The Staff report correctly states that the Town Council adopted the 2023-2031 Housing Element on January 30, 2023, meeting the statutory deadline of January 31, 2023.
However, it omits a critical detail: the Town Council adopted the Housing Element by resolution, making the explicit finding that “the draft Housing Element substantially complies with State Housing Element Law.” This recommendation was provided by Staff in the January 26, 2023, Staff report.
The adopted resolution clearly referenced compliance with Government Code Section 65585(f) and affirmed that the Housing Element met the requirements of State Housing Element Law. This distinction is significant because it raises questions about the legal standing of the numerous Builder’s Remedy applications the Town has received. The resolution confirming substantial compliance has never been rescinded.
Furthermore, the January 26, 2023, Staff report explicitly stated:
“It is possible that a developer could invoke the ‘Builder’s Remedy’ in connection with a planning application submitted in February IF the Town Council does not adopt a Housing Element that is in substantial compliance with Housing Element Law by January 31, 2023.”
While we recognize that Housing Element certification by HCD is required, Government Code Section 65585 does not mandate HCD certification before a jurisdiction can determine its Housing Element is in substantial compliance. In fact, Section 65585(e) only requires the legislative body to consider HCD’s findings.
Given these points, we urge the Town to clarify its position:
• Does the Town stand by the accuracy of its January 30, 2023, resolution, confirming substantial compliance with Housing Element Law?
• If the Town no longer believes the resolution was accurate, will the Council formally rescind it?
ATTACHMENT 2
This issue is of significant legal and procedural importance and should be addressed clearly.
Table D Requires Immediate Correction to Reflect a “Net Loss” in Site Inventory The current Table D is inaccurate, as it fails to account for a net loss in the Town’s site inventory. This issue must be corrected immediately to comply with the State’s “No Net Loss” provisions.
For reference, we have attached the August 10, 2023, Staff report, which explicitly states in Paragraph F – Sites Inventory the Town’s obligation to maintain sufficient sites to accommodate its RHNA requirements. Under State law, if a jurisdiction loses capacity due to approved projects, it must rezone additional sites within six months to make up the shortfall.
We have also attached an analysis of the impact of recent approvals, specifically:
• N40 Development (Site D-1)
• Los Gatos Lodge (Site B-1)
• Actual ADU production for 2023 and 2024
This analysis indicates that the Town now lacks sufficient sites to meet its RHNA targets for very low-income and moderate-income units. Specifically, the data reveals a net loss of:
• 107 very low-income units
• 78 moderate-income units
This shortfall is urgent. Under State law, if the Town does not rezone sufficient sites within six months of project approval, HCD has the authority to revoke the Town’s certified Housing Element.
Conclusion
We respectfully urge the Town Council to:
1. Clarify the status of the January 30, 2023, resolution regarding substantial compliance.
2. Immediately correct Table D to reflect the net loss in site inventory.
3. Initiate rezoning efforts as required under the State’s “No Net Loss” provisions to maintain compliance with Housing Element Law.
We appreciate your time and attention to these critical matters.
Sincerely,
Los Gatos Community Alliance
Facts Matter; Transparency Matters; Honesty Matters
www.lgca.town
Analysis of adequacy of Site Inventory
Zipcode APN VL L
N40 Parcels - Site D-1 inventory
14859 Los Gatos Boulevard 95032 424-07-094 35 17
16392 Los Gatos Boulevard 95032 424-07-095 9 4
16260 Burton Road 95032 424-07-053 5 2
16250 Burton Road 95032 424-07-009 5 2
14917 Los Gatos Boulevard 95032 424-07-081 45 22
14925 Los Gatos Boulevard 95032 424-07-115 73 36
Los Gatos Boulevard 95032 424-07-116 12 6
>>Total 184 89
SB 330 Application received by Town 0 88
(Shortfall)/Excess from Site Inventory D-1 (184) (1)
Los Gatos Lodge - Site B-1 inventory
50 Los Gatos-Saratoga Road 95030 529-24-032 76 75
Los Gatos-Saratoga Road 95030 529-24-001 9 9
Los Gatos-Saratoga Road 95030 529-24-003 1 2
>>Total 86 86
SB 330 Application approved by Town 0 26
(Shortfal)/Excess from Site Inventory B-1 (86) (60)
>>Total Shortfall from Site Inventory for B-1 and D-1 (270) (61) Table D-2 RHNA Credits and Sites Strategy
> Pipeline Projects - June 30,2022 to January 31, 2023 0 4 >Projected ADU's (Jan 1, 2023 to Jan 31, 2031) 60 60
>HEOZ Sites Units 634 357
Total Units 694 421
Less:
>Net Loss from Sites B-1 and D-1 (270) (61)
>(shortfall) excess production of ADU's 6 4
Total Adjustment (264) (57)
Adjusted Units 430 364
RHNA 6th Cycle 537 310
(Shortfall)/Excess over RHNA - Net Loss (107) 54
M A Total Acres
17 18 87 2.9
5 5 23 0.78
3 3 13 0.44
3 3 13 0.44
22 23 112 3.74
36 37 182 6.07
6 7 31 1.02
92 96 461 15.39
0 349 437
(92) 253 (24)
51 9 211 7.04
9 18 45 1.49
2 3 8 0.28
62 30 264 8.81
0 129 155
(62) 99 (109)
(154) 352 (133)
11 201 216
60 20 200
340 624 1,955
411 845 2,371
(154) 352 (133)
(15) (5)
(169) 347 (133)
242 1,192 2,238
320 826 1,993
(78) 366 245
No Net Loss Analysis VL L M A Total
Total Units - Table D-2 of the Housing Element 694 421 411 845 2,371 6th Cycle RHNA 537 310 320 826 1,993
Housing Element Sites Inventory Surplus 157 111 91 19 378 Net Site Impact from Proposed Projects
>Los Gatos Lodge (86) (70) (52) 103 (105)
>North 40 (184) (1) (92) 253 (24)
>ADU actual production 2023 and 2024 adjustement 6 4 (15) (5) (10) Remaining Housing Element Site Inventory Surplus (107) 44 (68) 370 239 Note:
This analysis is conservative with regard to the remaining surplus because there is no evidence the Housing Element assumed unit production of 2,371 will be distributed by income as planned. The Housing Element Site Inventory assumes 47% (694+421/ 2371)of the total units will be very-low and low income units. Actual production has shown that no more than 20% of the units produced will be very-low and low income units. If this analysis was adjusted to reflect "realistic development by income category" the remaining surplus would be less. Or stated another way the net loss numbers would be even greater.
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