110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 08/04/2026
ITEM NO: 15
DESK ITEM
DATE: August 4, 2026
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Consider a Recommendation of Approval by the Planning Commission and Introduce an Ordinance Amending Chapter 29 (Zoning Regulations) of the Town Code Regarding Accessory Dwelling Units and Definitions. The Proposed Amendments are Not Subject to CEQA Review Pursuant to CEQA, Section 15061 (b)(3), Because it can be Seen with Certainty that they will not Significantly Affect the Physical Environment in that they Make Minor Changes to the Regulations Applicable to Accessory Dwelling Units and Definitions. Additionally, the Proposed Amendments are Statutorily Exempt Pursuant to Public Resources Code Section 21080.17. Town Code Amendment Application A-26-001. Project Location: Town Wide. Applicant:
Town of Los Gatos. Project Planner: Sean Mullin.
Ordinance Title: An Ordinance of the Town Council of the Town of Los Gatos Amending Chapter 29, Zoning Regulations, of the Town Code Regarding Accessory Dwelling Units and Definitions.
REMARKS:
Attachment seven contains public comment.
Attachments Received with the Staff Report:
1. Required Findings
2. Draft Ordinance
3. Redline ADU Municipal Code Sections changes
4. June 10, 2026, Planning Commission Staff Report with Exhibits
5. June 10, 2026, Planning Commission Verbatim Minutes
6. CA Government Code Sections 66310 through 66342
Attachments Received with this Desk Item:
7. Public Comment
Aug 4, 2026
Town of Los Gatos
110 E. Main Street
Los Gatos, CA 95030
By email: [email protected]; [email protected]; [email protected]; [email protected]; [email protected] Cc: [email protected]; [email protected]; [email protected]; [email protected];
Re: Proposed Amendments to the Town’s ADU Regulations
Dear Los Gatos Town Council,
The California Housing Defense Fund (CalHDF) submits this letter as a public comment regarding item 15 for the Council meeting of August 4, 2026, an update to the Town’s zoning text governing the construction of accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs).
There are specific portions of the Town’s ADU code that conflict with state ADU law, and the Town must correct these issues before passing the ordinance.
Background
The law gives local governments authority to enact zoning ordinances that implement a variety of development standards on ADUs. (Gov. Code, § 66314.) The standards in these local ordinances are limited by state law so as not to overly restrict ADU development. (See id.) Separately from local ADU ordinances, Government Code section 66323 establishes a narrower set of ADU types that local governments have a ministerial duty to approve. “Notwithstanding Sections 66314 to 66322 ... a local agency shall ministerially approve” these types of ADUs. (Id. at subd. (a).) This means that ADUs that satisfy the minimal requirements of section 66323 must be approved regardless of any contrary provisions of the local ADU ordinance. (Ibid.) Local governments may not impose their own standards on such ADUs. (Gov. Code, § 66323, subd. (b) [“A local agency shall not impose any objective development or design standard that is not authorized by this section upon any accessory dwelling unit that meets the requirements of any of paragraphs (1) to (4), inclusive, of subdivision (a).”].) 2201 Broadway, PH1, Oakland, CA 94612
www.calhdf.org
ATTACHMENT 7
In addition, ADUs that qualify for the protections of Government Code section 66323, like other ADUs, must be processed by local governments within 60 days of a complete permit application submittal. (Gov. Code, § 66317, subd. (a).) State law also prohibits creating regulations on ADU development not explicitly allowed by state law. Government Code Section 66315 states, “No additional standards, other than those provided in Section 66314, shall be used or imposed, including an owner-occupant requirement, except that a local agency may require that the property may be used for rentals of terms 30 days or longer.”
Impermissible Limit on Number of Stories
Town code section 29.10.320(e) restricts “by-right accessory dwelling units” (i.e. units developed pursuant to Government Code section 66323) to one story.
However, such a restriction on number of stories is plainly forbidden by Government Code, section 66323, subdivision (b), which explicitly exempts statewide exemption ADUs from all local standards: “(b) A local agency shall not impose any objective development or design standard that is not authorized by this section upon any accessory dwelling unit that meets the requirements of any of paragraphs (1) to (4), inclusive, of subdivision (a).” Because Government Code section 66323 does not contain a restriction on the number of stories, the Town may not impose one.
HCD reaffirms this requirement of state law on page 20 of the January 2025 HCD ADU Handbook (emphasis added):
A local agency may notimpose development or design standards, including both local standards and standards found in State ADU Law, on 66323 Units that are not specifically listed in Government Code section 66323. (Gov. Code, § 66323, subds. (a), (b).) This includes, but is not limited to, parking, height, setbacks, or other zoning provisions (e.g., lot size, open space, floor area ratio, etc.).
The Town must exempt ADUs developed pursuant to Government Code section 66323 from limits on number of stories. The 20-foot height limit for ADUs developed near transit is adequate to create a two-story ADU, and the 25-foot height limit for an attached ADU is more than adequate, and the Town may not prevent this via a local development regulation.
Impermissible Parking Requirements
Town code section 29.10.320(j) imposes offstreet parking requirements on all ADUs, less certain exceptions.
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However, as discussed supra, Government Code section 66323 mandates that the Town approve a specific class of ADUs subject only to specified height and setback requirements, notwithstanding any local code requirements to the contrary. This means that the Town cannot subject such ADUs to parking requirements.
requirements on 66323 units.
From page 19 of the Handbook (emphasis added):
What design, zoning, or other local standards can be imposed on 66323 Units? A local agency may not impose development or design standards, including both local standards and standards found in State ADU Law, on 66323 Units that are not specifically listed in Government Code section 66323. (Gov. Code, § 66323, subds. (a), (b).) This includes, but is not limited to, parking, height, setbacks, or other zoning provisions (e.g., lot size, open space, floor area ratio, etc.).” The Town must amend its ADU ordinance to exempt 66323 ADUs from parking requirements under all circumstances.
Impermissible Requirement to Correct Nonconforming Conditions Town code section 29.10.320(j) requires “the number of off-street parking spaces required by this Chapter for the primary dwelling shall be provided prior to the issuance of a Building Permit or final inspection, for a new accessory dwelling unit.” This provision conditions approval of an ADU on the correction of existing nonconforming conditions related to parking requirements. This is not permitted by state law.
Government Code section 66322, subdivision (b) “The local agency shall not deny an application for a permit to create an accessory dwelling unit due to the correction of nonconforming zoning conditions, building code violations, or unpermitted structures that do not present a threat to public health and safety and are not affected by the construction of the accessory dwelling unit.”
As you can see, the Town may not require the correction of nonconforming zoning conditions before approving an ADU permit.
The Town must amend code section 29.10.320(j) to remove this requirement to correct nonconforming conditions related to off-street parking prior to issuing a permit for ADU development.
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Impermissible Grading and Cut/Fill Standards
Town code sections 29.10.320(k) and (l) impose standards relating to grading and cut and fill, making exceptions only for excavation within the footprint of a proposed ADU/JADU, even if the development actually requires additional excavation. The Town impermissibly requires a discretionary approval to exceed these allowances. (See Gov. Code, §§ 66316, 66317.) However, state law forbids the application of these local standards to ADUs developed pursuant to Government Code section 66323. This is because Government Code section 66323, subdivision (b) forbids the application of local development standards.
HCD reaffirms this requirement of state law on page 19 of the March 2026 HCD ADU Handbook (emphasis added):
A local agency may notimpose development or design standards, including both local standards and standards found in State ADU Law, on 66323 Units that are not specifically listed in Government Code section 66323. (Gov. Code, § 66323, subds. (a), (b).) This includes, but is not limited to, parking, height, setbacks, or other zoning provisions (e.g., lot size, open space, floor area ratio, etc.).
The Town must exempt ADUs developed pursuant to Government Code section 66323 from these grading and cut/fill provisions.
Impermissible Design Standards
Town code sections 29.10.320(m), (n), (o) and (p) impose design standards relating to retaining walls, exterior materials, landscaping, and lighting, respectively.
However, state law forbids the application of these local standards to ADUs developed pursuant to Government Code section 66323. This is because Government Code section 66323, subdivision (b) forbids the application of local design and development standards.
HCD reaffirms this requirement of state law on page 19 of the March 2026 HCD ADU Handbook (emphasis added):
A local agency may notimpose development or design standards, including both local standards and standards found in State ADU Law, on 66323 Units that are not specifically listed in Government Code section 66323. (Gov. Code, § 66323, subds. (a), (b).) This includes, but is not limited to, parking, height, setbacks, or other zoning provisions (e.g., lot size, open space, floor area ratio, etc.).
The Town must exempt ADUs developed pursuant to Government Code section 66323 from these development and design standards.
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Impermissible Application of Underlying Standards
Town code sections 29.10.320(q) and (t) impose all underlying code provisions on ADU and JADU development, including the Town’s tree ordinance and all other Town codes.
However, state law forbids the application of these local standards to ADUs developed pursuant to Government Code section 66323. This is because Government Code section 66323, subdivision (b) forbids the application of local design and development standards.
HCD reaffirms this requirement of state law on page 19 of the March 2026 HCD ADU Handbook (emphasis added):
A local agency may notimpose development or design standards, including both local standards and standards found in State ADU Law, on 66323 Units that are not specifically listed in Government Code section 66323. (Gov. Code, § 66323, subds. (a), (b).) This includes, but is not limited to, parking, height, setbacks, or other zoning provisions (e.g., lot size, open space, floor area ratio, etc.).
The Town must exempt ADUs developed pursuant to Government Code section 66323 from underlying development and design standards.
Impermissible Front Setback Requirement
Table 1-3 imposes underlying front setbacks on all section 66323 ADUs, with the caveat “Front setback requirements shall not preclude construction of by-right accessory dwelling units.”
However, Government Code section 66323, subdivision (a) does not permit any imposition of front setback requirements, if the ADUs qualify for the protections of that section of law.
This is because Government Code section 66323, subdivision (b) forbids the application of local development standards.
There are many policy reasons for this. For instance, a homeowner may prefer to preserve a private backyard space while redeveloping the less useful front yard. While children may play in the backyard, the front yard is closer to the street and less safe for a variety of activities. The Town therefore must allow front yard ADUs that comply with the standards in Government Code section 66323, subdivision (a) both on single family and on multifamily Properties.
HCD has issued guidance under its authority in Government Code section 66327 (that guidance is located in the March 2026 HCD ADU Handbook, page 16) affirming the duty of local agencies to allow ADUs protected by Government Code section 66323 in the front ,5 of 7
setback under all circumstances: “66323 Units do not have to comply with lot coverage, front setbacks, and design standards.”
The HCD Handbook is clear on the issue of imposing development or design standards on section 66323 ADUs. From page 19 of the March 2026 HCD ADU Handbook (emphasis added):
A local agency may not impose development or design standards, including both local standards and standards found in State ADU Law, on 66323 Units that are not specifically listed in Government Code section 66323. (Gov. Code, § 66323, subds. (a), (b).) This includes, but is not limited to, parking, height, setbacks, or other zoning provisions (e.g., lot size, open space, floor area ratio, etc.).
The savings clause in note (5) to Table 1-3 (“Front setback requirements shall not preclude construction of by-right accessory dwelling units.”) is insufficient. The Town may not apply front setbacks at all. It cannot force applicants to locate ADUs outside the front setback if, in the judgement of Town staff, there is space elsewhere on the lot. Such a process would be nonobjective (See Gov. Code, § 66313, subd. (i)) and it would also violate Government Code section 66323, subdivision (b).
The Town must amend its ordinance to remove this front setback requirement for section 66323 ADUs.
Impermissible Building Separation Requirement
Table 1-3 imposes a five-foot building separation requirement on section 66323 ADUs.
However, state law forbids the application of such a local standard to ADUs developed pursuant to Government Code section 66323. This is because Government Code section 66323, subdivision (b) forbids the application of local design and development standards.
HCD reaffirms this requirement of state law on page 19 of the March 2026 HCD ADU Handbook (emphasis added):
A local agency may notimpose development or design standards, including both local standards and standards found in State ADU Law, on 66323 Units that are not specifically listed in Government Code section 66323. (Gov. Code, § 66323, subds. (a), (b).) This includes, but is not limited to, parking, height, setbacks, or other zoning provisions (e.g., lot size, open space, floor area ratio, etc.).
The Town must exempt ADUs developed pursuant to Government Code section 66323 from these building separation requirements.
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It is laudable that the Town is updating its ADU regulations as state law changes. However, the Town must amend its ADU ordinance to address the issues in this letter.
CalHDF is a 501(c)(3) non-profit corporation whose mission includes advocating for increased access to housing for Californians at all income levels, including low-income households. You may learn more about CalHDF at www.calhdf.org.
Sincerely,
Dylan Casey
CalHDF Executive Director
James M. Lloyd
CalHDF Director of Planning and Investigations
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