Monte Sereno City Council
January 31, 2023

AGENDA
City of Monte Sereno
Tuesday, January 31, 2023
Joint Special Meeting of the City Council and
Site and Architectural Commission
6:00 PM
Monte Sereno City Council Chambers -
18041 Saratoga - Los Gatos Road,
Monte Sereno, CA 95030
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Page

CALL TO ORDER

ROLL CALL

UNFINISHED BUSINESS

1. Site and Architecture Consideration of 6th Cycle Housing Element (CEQA: Exempt, Guidelines sections 15303, 15332, 15061) Staff recommends that the Site and Architectural Commission take the following action:
• Recommend that the City Council adopt a resolution to adopt the 6th Cycle Housing Element
Staff Report - SR-23-023 - Pdf
3 - 44

2. City Council Consideration and Adoption of the 6th Cycle Housing Element (CEQA: Exempt, Guidelines sections 15303, 15332, 15061) Staff recommends that the City Council take the following action:
• Adopt a resolution to adopt the 6th Cycle Housing Element Staff Report - SR-23-023 - Pdf
45 - 86

ADJOURN

STAFF REPORT
Meeting: Joint Special Meeting of the City Council and Site and Architectural Commission - Jan 31 2023
Agenda Heading: UNFINISHED BUSINESS
Staff Contact: Diana Perkins, City Planner
Department: City Planner
Title: Consider Adoption of the 6th Cycle Housing Element (CEQA: Exempt, Guidelines sections 15303, 15332, 15061)
Recommendation(s):

Staff recommends that the Site and Architectural Commission take the following action:
• Recommend that the City Council adopt a resolution to adopt the 6th Cycle Housing Element
Staff recommends that the City Council take the following action:
• Adopt a resolution to adopt the 6th Cycle Housing Element Background Information:

The Housing Element is part of the City’s General Plan and identifies policies and programs to meet the housing needs of the city’s current and future residents. State law (Government Code Sections 65580-65589.8) requires that every city and county in California adopt a Housing Element, approximately every five or eight years. In addition, the State Department of Housing and Community Development (HCD) reviews and certifies that each Housing Element meets all the requirements of the law. Monte Sereno’s current 5th Cycle Housing Element was adopted in 2015 and the new document must be adopted by January 31, 2023, but the state’s approval process can take several months.

The Housing Element Process has mandatory public participation requirements described below along with the stat us of requirement:

Item Date Completed
Prior to submittal of the first draft within a
planning period to HCD, the local
government must make the draft available for
public comment for 30 days and if any
comments were received, take at least 10
Draft 6th Cycle Housing Element published
for public review on August 9, 2022
Public comments reviewed by City Council
on September 6, 2022

Item Date Completed
business days to consider and incorporate
public comments.

Submit draft to HCD for review/approval. Draft 6th Cycle Housing Element submitted to HCD October 12, 2022.

For any subsequent revisions, the local
government must post the draft revision on
its website and email a link to all individuals
and organizations that have previously
requested notices relating to the local
government’s housing element at least
seven days before submitting any draft
revision to HCD.

Revisions were posted January 24 to the
public.

Revise and adopt (or adopt without changes,
with specific findings explaining the reasons
the City Council believes the draft element
substantially complies with Housing Element
law despite findings of the Department of
Housing and Community Development).

Special Joint Special Meeting with the City
Council and Site and Architectural
Commission to consider adopting the 6th
Cycle Housing Element is scheduled for
January 31, 2023.

Resubmit to HCD Promptly after adoption
Re-review by HCD, with additional findings
provided to the City 60 days after resubmittal
Housing Element Overview
Monte Sereno’s current 5th Cycle Housing Element covered 2015 to 2023 and was adopted on May 19, 2015. The updated 6th Cycle Housing Element will be for the 2023 to 2031 planning period. The Housing Element is required to include the following components:

1. Housing Needs Assessment: An analysis of housing needs of the City's population, including analysis of population, housing characteristics, projected housing needs by income group, housing needs of special needs populations (including elderly, persons with disabilities, etc.), existing housing stock conditions, and existing units in need of replacement or rehabilitation.

2. Constraints Analysis: An analysis of housing constraints that impact housing production, including city land use controls, local ordinances, permit requirements, fees, and the way that they may impact housing production.

3. Evaluation of Past Performance: Assess progress in implementing the policies and programs from the prior Housing Element.

4. Housing Sites Inventory: Identify housing sites available for development or redevelopment, ensuring that there is sufficient capacity to address the Regional Housing Needs Allocation for all income levels.

5. Policies and Programs: Establish policies and programs to be carried out during the 2023-2031 planning period to fulfill the identified housing needs.

6. Community Outreachand Engagement: Conduct a thorough program of community engagement, with a particular focus on outreach to traditionally underrepresented groups.

7. Affirmatively Further Fair Housing (AFFH): Analyze and address significant disparities in housing needs and access to opportunity by proposing housing goals, objectives, and policies that aid in replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws.

New Requirements for the 6th Cycle Housing Element Update Pursuant to recent State legislation, the following items are now required as part of the 6th Cycle Housing Element update process:
• Affirmatively Furthering Fair Housing (AFFH). Assembly Bill 686 (AB 686), passed in 2018, created new requirements for jurisdictions to affirmatively further fair housing. According to AB 686, affirmatively furthering fair housing means to take “meaningful actions, in addition to combating discrimination, which overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics” and is Federally mandated by the 1968 Fair Housing Act. The four main goals are to:
• Address significant disparities in housing needs and in access to opportunity, and • Replace segregated living patterns with truly integrated and balanced living patterns, and • Transform racially and ethnically concentrated areas of poverty into areas of opportunity, and • Foster and maintain compliance with civil rights and fair housing laws. • Public Comment on Draft Revisions. Assembly Bill (AB)215 (2021), requires local governments to make the first draft revision of their housing element update available for public comment for at least 30 days. Further, if any comments are received, a local government must take at least ten additional business days to consider and incorporate public comments into the draft revision before submitting to HCD. HCD must review the draft and report its written findings to the planning agency within 90 days of receiving the first draft submittal for each housing element revision or within 60 days of its receipt for a subsequent draft amendment or adoption.

Penalties for Non-Compliance
In the 6th cycle, jurisdictions face a number of new consequences for not having a certified Housing Element. Under legislation enacted in recent years, if a city does not comply with State housing law, HCD may refer the City to the Attorney General. Significant fines may be imposed if a City does not comply with a court order for one year. A court finding a Housing Element inadequate may limit local land use decision-making authority until the jurisdiction brings its Housing Element into compliance, or local governments may lose the right to deny certain projects.

Conversely, an HCD-certified housing element makes cities eligible for, or with higher priority for, numerous sources of funding, such as Local Housing Allocations, Affordable Housing and Sustainable Communities Grants, SB 1 Planning Grants, CalHOME Program Grants, Infill Infrastructure Grants, Pro-Housing Design funding, Local Housing Trust Funds, and Regional Transportation Funds (such as MTC’s OneBayArea Grants).

Analysis:
2023-2031 6th Cycle Housing Element
The 2023-2031 6th Cycle Housing Element consists of the following sections:

1. Introduction: Explains the purpose, process, and contents of the Housing Element.

2. Goals, Policies, and Programs: Details specific policies and programs the city will undertake over the 2023-2031 Planning Period to address the housing goals.

3. Overview of Housing Needs and Constraints: Reviews governmental constraints, including land use controls, fees, and processing requirements, as well as nongovernmental constraints, such as construction costs, availability of land and financing, physical environmental conditions that may impede the development, preservation, and maintenance of housing.

4. Vacant and Available Sites: Describes the city’s strategy to achieve the RHNA requirements and identifies land suitable to accommodate these additional housing units.

5. Energy Conversation: Identifies opportunities and programs for energy conservation.

The 6th Cycle Housing Element also includes seven technical appendices with detailed analysis and information that supports the findings and conclusions in the main document. The following is a summary of the major elements of the 6th Cycle Housing Element:

Affirmatively Furthering Fair Housing (AFFH)
One of the new requirements for the 6th cycle Housing Element Update is AFFH. Assembly Bill (AB) 686, passed in 2018, created new requirements for jurisdictions to affirmatively further fair housing. According to AB 686, affirmatively furthering fair housing means to take “meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics.” The four main goals are to:
• Address significant disparities in housing needs and in access to opportunity • Replace segregated living patterns with truly integrated and balanced living patterns • Transform racially and ethnically concentrated areas of poverty into areas of opportunity • Foster and maintain compliance with civil rights and fair housing laws AFFH is discussed in Chapter 1 and more thoroughly analyzed in Appendices A and G.

Housing Goals, Policies, and Programs
The Housing Goals in Chapter 2 are organized into the following categories:
• Goal H-1: Facilitate Housing Construction
• Goal H-2: Provide New Affordable and Equal Opportunity Housing • Goal H-3: Maintain and Improve the Existing Housing Stock • Goal H-4: Publicize Resources
The list of policies and programs in this chapter detail the actions that will be undertaken by the City during the planning period. These programs serve as a roadmap of how the city will create and preserve housing, especially for vulnerable populations. With these programs, the city has committed to reviewing development standards identified as constraints to housing construction and affordability, encourage and incentivize ADU construction, promote and enforce fair housing, analyze multi-family densities and potential sites, and encourage water and energy conservation.

Regional Housing Needs Allocation (RHNA) and Sites Inventory In January of 2022, HCD approved the Association of Bay Area Governments (ABAG) adopted Final RHNA Plan which establishes a total RHNA of 441,176 residential units for the San Francisco Bay Area’s 6th Cycle Housing Element Update. Monte Sereno’s RHNA for this upcoming 6th Cycle Housing Element is 193, an over 300% increase from last cycle’s RHNA of 61. Monte Sereno’s assigned RHNA for this housing cycle is distributed across four income categories as follows:

Very Low
Income
Low Income Moderate
Income
Above Moderate
Income
Total
53 30 31 79 193
Under state law, cities are not responsible for building such housing, but do need to identify adequate housing sites, as part of their sites inventory, and put in place the proper zoning and address development constraints, so that the private sector can build the housing.

To meet the RHNA, the city’s strategy is to create a robust outreach program to encourage the creation of ADUs within the city. Ad Hoc Committees to spearhead this goal were created by the City Council and the Site and Architectural Commission. The Committees developed a community-wide public outreach program to encourage creation of ADU units which includes the following:
• Informational postcards mailed to each resident/property owner; • Door-to-door neighborhood canvassing;
• Direct e-mails to interested parties, contractors, architects/designers; • Social media postings; and
• Information to be provided at the City-wide picnic on August 21, 2022

Additionally, the City Council approved a 50% reduction in building permit and plan review fees for building permit that create a new ADU, through new construction of the conversation of an existing structure (i.e. pool house, garage).

These efforts results in receiving 225 written intentions from property owners within Monte Sereno to construct an ADU on their property within the planning period. The 225 written intentions achieve the RHNA requirement of planning for 193 additional housing unit as well as a 15% buffer.

RHNA Buffer
New “no net loss” provisions of Government Code Section 65863 require that local jurisdictions ensure an adequate supply of land resources to be made available for housing development throughout the duration of the 2023-2031 planning period. This means if housing sites identified within the a city’s6th cycle housing element update are developed with nonresidential uses, lower residential densities, or residential uses that do not have the affordability levels anticipated by the Housing Element, the city’s Housing Element could be determined to be out of compliance. Accordingly, the city/town’s RHNA requirement of 193 is further buffered with and additional 15% to ensure compliance with ”no net loss” provisions.

The Housing Element includes a plan for a total of 225 new ADUs during the planning period.

Summary of Prior Meetings and Study Sessions
Over the last 12 months, Monte Sereno has conducted a comprehensive community engagement and outreach strategy to assist in informing the 6th cycle Housing Element Update Process. This strategy has included a series of community meetings and public meetings as summarized below:
• February 24, 2022 – City Council study session to provide an overview of the 6th cycle Housing Element process and schedule.
• April 19, 2022 – City Council meeting to discuss sites inventory. • April 23, 2022 – 6th cycle Housing Element Community Workshop meeting. • May 24, 2022 – Joint Meeting with the City Council and Site and Architectural Commission to discuss sites inventory.
• June 21, 2022 – City Council meeting to discuss ADU incentives/fee reductions and also to review draft programs.
• July 21, 2022 – Special City Council meeting where the Ad Hoc Housing Element committee provided an update on their plans to incentive ADU construction.

Additionally, the City Council approved a resolution at this meeting to offer a building permit fee reduction for ADU construction.
• August 21, 2022 – City-wide Picnic where information was available on the 6th cycle Housing Element update and feedback was received from the community. Additionally, West Valley Community Services facilitated a panel discussion where members of the community shared their experiences with housing insecurity, housing barriers, and living in an ADU.

• September 6, 2022 – City Council meeting to discuss remove of ADU development constraints of owner occupancy requirements and a potential amnesty program. Also, the Draft 6th cycle Housing Element was reviewed at this meeting. • September 20
• November 1, 2022 – City Council meeting where an ordinance was introduced to remove owner occupancy requirements for ADUs, create and amnesty program for unpermitted ADUs, and update the Municipal Code for the new state laws related to ADUs effective 2023.
• December 12, 2022 – Community meeting to provide information, various perspectives, and receive feedback on ADU construction in the West Valley region. • December 20, 2022 – City Council meeting to providing an update on the status of the 6th cycle Housing Element update.
• January 17, 2023 – City Council meeting to review comments received by HCD on the Draft 6th cycle Housing Element.
• January 31, 2023 – Joint City Council and Site and Architectural Commission meeting to consider adoption of the revised 6th cycle Housing Element.

Comments Received by HCD
The Draft 6th cycle Housing Element was submitted to the HCD for review on October 11, 2022 and comments were received on January 9, 2023. The HCD comment letter is included at Attachment 1 to this staff report. A detailed listing of each comment and how it has been addressed in the revised 6th cycle Housing Element is included in the Attachment 2 to this staff report. Following is summary of the comments and recommended responses.

The following section outlines changes to the Housing Element in response to HCD’s comments, including information on the City’s response. Please refer to Attachment 2 for a detailed listing of each comment, description of changes made to the 6th cycle Housing Element, and the pages of the document where the revised information is provided.

Section A – Review and Revision
HCD has asked for expanded analysis and summary of the outcomes of the programs from the previous, 5th Cycle Housing Element, particularly the lack of multi-family zoned properties within the city. And analysis of the cumulative effectiveness of past goals, policies, and related action in meeting the needs of special need populations is needed.

Appendix F has been revised to provide a more detailed description of outcomes for the programs from the previous Housing Element to more fully describe the results of each program and a cumulative analysis on the effectiveness of the overall Housing Element has been expanded. Additional analysis has been provided for Programs HE-2.1, HE-2.2, HE-2.3, HE-4.1, and HE-4.2. Additional cumulative analysis has noted that Monte Sereno greatly exceeded the RHNA requirements from the previous Housing Element in that permits were issued for 139 new houses, where 61 were required. Additionally, the City approved the first multi-family housing project in the city, which included modifying the multi-family zoning standards to allow a density almost twice what was previously allowed.

Section B – Housing Needs, Resources, and Constraints

The focus of HCD’s comments in this area are regarding the sites inventory, which includes the 225 ADU sites were property owner provided a written intention to construct an ADU, as well as the lack of a variety of housing densities including small lots and multi-family. HCD has requested that the City provide additional analysis with respect to the expected affordability of ADUs constructed, and staff have also considered and addressed comments received related to affordability.

The 6th cycle Housing Element has been revised to include additional information about historical ADU construction and use within the City to justify the assumptions made for ADUs in the upcoming planning period. The results of the annual ADU surveys have been included, these show that the vast majority of ADUs are used as dwelling units and are rented at lowincome levels.

Revisions have also been made to acknowledge that the zoning districts within the city are mostly single family; however, the 6th cycle Housing Element still justifies how the RHNA will be met through the ADU programs and incentives provided by the city. Further information has been added to better explain that the city does have a multi-family zoning district and the densities that are permitted in this district. Additionally, to respond to HCD’s comments, a discussion has been added about the SB 9 legislation and densities permitted under this new state law, which is the equivalent of a multi-family density.

Although the RHNA, both the number of new units required and the affordability levels, can be met through the construction of new ADUs, a program has been added to the 6th cycle Housing Element to study and evaluate potential multi-family sites that may be appropriate in the city as well as analyzing a variety of densities that could be allowed in future housing elements and other various state laws.

Section C – Housing Programs
HCD comments on the draft housing programs were focused on strengthening the commitment to outcomes, prioritizing certain programs that reduce constraints to housing affordability and housing for special needs populations, and identifying sites and appropriate zoning to facilitate multi-family development.

Appendix E has been updated so that the wording of programs noted in the comment (Program E – Facilitate Subdivision, Program G – Develop Incentives, Program H – Employee Housing, and Program I – Accessory Dwelling Units) has been strengthened as required in HCD’s comments. Adjustments have also been made to the timeframe for the various programs that support housing for special needs populations to have those programs addressed earlier this planning period.

Also, as noted above in Section B, a program has been added to analyze sites and densities that may be appropriate for multi-family zoning within the city. Further emphasis has been made the multi-family zoning that does exist in Monte Sereno and has resulted in housing structured at the highest density of units per acre that is provided in the city. Further, the SB 9 state regulations allow up to four dwelling units on every single family zoned lot, regardless of

lot size, which effectively permits by-right multi-family housing on nearly every lot in Monte Sereno.

Section D – Quantified Objectives
The comment from HCD require that numerical targets be added for the ADU amnesty program, Program Q (Housing Maintenance), Program R (Infrastructure Capital Improvements), Program S (Energy Conservation), Program T (Water Conservation) and Program U (Fair Housing).

The programs in Appendix E have been updated with anticipated or targeted outcomes for each of the programs noted in the HCD comments. This provides an estimation of the actual number of housing unit affected by each program.

Section E – Public Participation
HCD’s comment requested that additional public outreach be made to lower-income and special needs groups to understand and address their housing needs.

Since the Draft 6th cycle Housing Element was submitted to HCD, the city has been working with West Valley Community Services to reach out to the lower-income and special needs groups within the community. A community meeting was held in December with an ADU developer, a property owner who rents an ADU to a local teacher at less than market rate, and a resident of an ADU. The meeting was intended to receive information about the issues and benefits of ADUs from all involved parties. The ADU Program I program includes a variety of programs to incentive ADU construction.

Next Steps
Once adopted by the City Council, the revised 6th cycle Housing Element will be submitted to HCD for a 60-day review.

California Environmental Quality Act:

The Housing Element Update is exempt from further review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and the regulations promulgated thereunder (14 California Code of Regulations §§ 15000, et seq., the "CEQA Guidelines"), that in accordance with the California Environmental Quality Act (CEQA), the City reviewed the project's environmental impacts under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and the regulations promulgated thereunder (14 California Code of Regulations §§ 15000, et seq., the "CEQA Guidelines") and deemed the project to be exempt from further CEQA review pursuant to section 15332 (Class 32 In-Fill Development Projects) of the CEQA Guidelines, 15303 (New Construction or Conversion of Small Structures) and section 15061 (Common Sense Exemption). All development that is currently projected under the Housing Element is currently permitted under existing zoning regulations.

None of the exceptions to the use of a categorical exemption, as identified in CEQA Guidelines section 15300.2, applies to this project:

• The project is not located in a sensitive environment such that the project may impact an officially mapped and designated environmental resource of hazardous or critical concern;
• The cumulative effect of successive projects of the same type in the same place, over time, is not likely to be significant, in light of the permitted zoning; • The project does not have a significant environmental impact due to unusual circumstances, in that the project is not unusual in light of the scope of similar permitted projects within the zoning district;
• The project will not damage scenic resources (i.e. trees, historic buildings, or rock outcroppings) within an officially designated state scenic highway; • The project is not located on a listed hazardous waste site; or • The project will not cause substantial adverse change in the significance of a historical resource.

Public Noticing:

The City of Monte Sereno's council meeting agenda was posted on the bulletin board outside of Monte Sereno City Hall and the agenda with this staff report can be accessed on The City of Monte Sereno's website located at www.montesereno.org.

On January 24, 2023, the revised 6th cycle Housing Element was posted on the Housing Element website at www.AtHomeinMonteSereno.com.

Attachments:

1. HCD Comment Letter Dated January 9, 2023

2. HCD Comments with Description of Revisions Made to the 6th cycle Housing Element

3. Resolution - Housing Element Adoption 4853-9511-7899 v.1

4. Monte Sereno 2023-2031 Housing Element

5. Public Comments Received

STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
January 9, 2023
Steve Leonardis, City Manager
City of Monte Sereno
18041 Saratoga-Los Gatos Road
Monte Sereno, CA 95030
Dear Steve Leonardis:

RE: City of Monte Sereno’s 6th Cycle (2023-2031) Draft Housing Element Thank you for submitting the City of Monte Sereno’s (City) draft housing element received for review on October 12, 2022. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. In addition, HCD considered comments from East Bay for Everyone, South Bay YIMBY, Anne Paulson and YIMBY Law pursuant to Government Code section 65585, subdivision (c).

The draft element addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code).

The enclosed Appendix describes the revisions needed to comply with State Housing Element Law.

For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government fails to adopt a compliant housing element within 120 days of the statutory deadline (January 31, 2023), then any rezoning to make prior identified sites available or accommodate the regional housing needs allocation (RHNA) shall be completed no later than one year from the statutory deadline pursuant to Government Code sections 65583, subdivision (c) and 65583.2, subdivision (c). Otherwise, the local government’s housing element will no longer comply with State Housing Element Law, and HCD may revoke its finding of substantial compliance pursuant to Government Code section 65585, subdivision (i). Please be aware, if the City fails to adopt a compliant housing element within one year from the statutory deadline, the element cannot be found in substantial compliance until these rezones are completed.

Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly

Steve Leonardis, City Manager

available and considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD.

Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City meets housing element requirements for these and other funding sources.

For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at:
https://www.opr.ca.gov/planning/general-plan/guidelines.html.

We are committed to assisting the City in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Mashal Ayobi, of our staff, at [email protected].

Sincerely,
Paul McDougall
Senior Program Manager
Enclosure

City of Monte Sereno’s 6th Cycle (2023-2031) Draft Housing Element Page 1 January 9, 2023

APPENDIX

CITY OF MONTE SERENO
The following changes are necessary to bring the City’s housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code.

Housing element technical assistance information is available on HCD’s website at https://www.hcd.ca.gov/planning-and-community-development/hcd-memos. Among other resources, the housing element section contains HCD’s latest technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks), available at https://www.hcd.ca.gov/planning-and-community-development/housing-elements/buildingblocks and includes the Government Code addressing State Housing Element Law and other resources.

A. Review and Revision
Review the previous element to evaluate the appropriateness, effectiveness, and progress in implementation, and reflect the results of this review in the revised element. (Gov. Code, § 65588 (a) and (b).)
The review requirement is one of the most important features of the element update. The review of past programs should describe progress in implementation of previous actions, including results compared to objectives and evaluate the effectiveness of actions to make appropriate adjustments in the current planning period. In several cases, the element appears to either omit or not describe and evaluate actions from the prior planning period.

Most notably, the review and revise does not evaluate actions related to accommodating the regional housing need allocation (RHNA) (accessory dwelling units (ADU)), providing realistic opportunities for multifamily development and outreach to affordable housing developers, including nonprofits. These programs were geared toward promoting housing variety and affordability, housing mobility and inclusion into Monte Sereno. Yet, the current element does not evaluate past commitments or consider appropriate actions. For example, Program H-2.5 committed to establish multifamily zoning and if not successful, provide alternative multifamily opportunities and amend the element to correct inconsistencies. The Program also committed to make specific outreach to developers of housing affordable to lower income and special needs households and apply for funding.

The current element includes some discussion that the multifamily zoning was repealed and instead a project was developed on a multifamily zoned site. The project occurred on a site that was committed to be zoned multifamily in the prior planning period for the same reasons (See Program HE 3.10 from the 4th cycle) – to promote a variety of housing types.

Instead, the site was zoned at precariously marginal densities and that development ended up being single-family – not multifamily. The element omits the depth and importance of this commitment and did not discuss or evaluate the effectiveness of multifamily zoning, lack of alternative measures taken and outreach efforts. Other examples of programs geared toward promoting housing variety, mobility and affordability from the prior review include:

City of Monte Sereno’s 6th Cycle (2023-2031) Draft Housing Element Page 2 January 9, 2023
• Program HE-2.1 (Evaluate ADU): The element does not discuss changes to development standards, results of the survey or achieving the program objectives. • Program HE-2.2 (Shared Housing): The element does not address contacting agencies or publicizing the program.
• Program HE-2.3 (ADU Monitoring): This program had a specific trigger to revise multifamily zoning and densities if ADUs for all income were not constructed in specified time intervals. The current element omits any discussion of these commitments.
• Program HE-4.1 (Special Needs): The element does not discuss the attempts, success or effectiveness of outreach with non-profit developers. • Program HE-4.2 (Senior Housing): The Program’s focus was to develop innovative housing. Instead, the element discusses the City’s attempts at partnerships with the County Department of Aging.

To address this requirement, the element must fully describe past commitments, progress in implementation, evaluate effectiveness and then discuss appropriate adjustments in the current planning period. Given the apparent lack of effectiveness and success in developing multifamily choices and affordability for at least two planning periods, this analysis should particularly focus on zoning for a variety of housing types, including multifamily and discuss significant actions to promote housing choice, affordability and mobility to facilitate inclusion beyond the RHNA and beyond complying with related state laws (e.g., ADU law and SB 9).

In addition, the element must provide an evaluation of the cumulative effectiveness of past goals, policies, and related actions in meeting the housing needs of special needs populations (e.g., elderly, persons with disabilities, large households, female-headed households, farmworkers, and persons experiencing homelessness) and revise programs as appropriate.

B. Housing Needs, Resources, and Constraints

1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).) Income and Racial Concentration of Affluence (RCAA): The element briefly mentions incomes in the City compared to the region and notes it is safe to speculate the City has neighborhoods that are RCAAs; however, the entire City is a RCAA and the element should incorporate this information. Please see HCD’s Affirmatively Furthering Fair Housing (AFFH) Data Viewer at https://affh-data-resources-cahcd.hub.arcgis.com/. The element should include specific analysis of income and RCAA at a regional level (City compared to the broader region). The analysis should at least address trends, conditions, coincidence with other fair housing factors (e.g., race, highest resource, overpayment), effectiveness or absence of past strategies (e.g., lack of publicly assisted housing and lack of multifamily zoning), local data and knowledge and other relevant factors. The element must add or modify meaningful programs based on the outcomes of this analysis, including actions to improve housing mobility within and beyond City boundaries.

City of Monte Sereno’s 6th Cycle (2023-2031) Draft Housing Element Page 3 January 9, 2023
Local Data and Knowledge and Other Relevant Factors: The element includes state and federal data but must utilize other sources of local data and knowledge to supplement the data and mapping including planning documents such as locally adopted ordinances, other elements of the general plan, infrastructure assessments, and mobility assessments to fully describe the impacts on fair housing patterns and trends.

In addition, the element must discuss other relevant factors such as historical land use (zoning, initiatives, growth control) that impacted socio-economic patterns.

Contributing Factors to Fair Housing Issues: Upon a complete AFFH analysis, the element must assess and prioritize contributing factors to fair housing issues and add or modify programs as appropriate.

2. Include an analysis of population and employment trends and documentation of projections and a quantification of the locality's existing and projected needs for all income levels, including extremely low-income households. (Gov. Code, § 65583, subd. (a)(1).)
Include an analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (Gov. Code, § 65583, subd. (a)(2).) Analyze any special housing needs such as elderly; persons with disabilities, including a developmental disability; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. (Gov. Code, § 65583, subd. (a)(7).)
Extremely Low-Income (ELI) Households: While the element quantifies existing ELI households, it must also identity projected ELI housing needs and analyze their housing needs. The projected housing need for ELI households can be calculated by using available census data to determine the number of very low-income households that qualify as ELI households or presume that 50 percent of the RHNA for very low-income households qualify as ELI households. The analysis of existing ELI housing needs should address tenure, disproportionate impacts (overcrowding, overpayment, housing situations), comparisons to other income groups, effectiveness of past strategies and magnitude of needs (including projected).

Housing Conditions: While the element includes information on the age of structures and lack of kitchen and plumbing facilitate, it must still estimate the number of units in need of rehabilitation and replacement. In addition, the element could consider discussion of any patterns from code enforcement as areas of more frequent enforcement to compliment the assessment of fair housing (See AFFH above, including local knowledge).

Housing Costs: The element currently utilizes American Community Survey (ACS) data to evaluate rental costs but should consider additional data sources to better reflect market conditions (e.g., Zillow, Apartments.com). If minimal rental data is available, the element could consider market conditions in comparable nearby communities.

City of Monte Sereno’s 6th Cycle (2023-2031) Draft Housing Element Page 4 January 9, 2023
Special Needs: While the element reports data on special needs groups, it must still include analysis including trends, characteristics, magnitude of need, resources, and potential strategies to mitigate identified housing issues.

3. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).)
Adequate Sites and Accessory Dwelling Units (ADU): The element identifies a RHNA of 193 units, including a lower-income RHNA of 83 units and moderate-income RHNA of 31 units and proposes to accommodate essentially the entire RHNA for all income groups with ADUs. While the element may demonstrate adequate sites entirely with ADUs, given the reliance on one strategy, it must include robust and commensurate analysis, as follows:
• Calculation of Past Trends: The element excludes 2020 permit numbers and then average permits to approximately 16 ADUs per year. However, even this calculation is incorrect and appears to exclude 2018 and 2020 numbers. Given the reliance on ADUs, the element should utilize averages based on all years since 2018.
• Affordability: The element uses the Association of Bay Area analysis of ADU rents. However, these assumptions should consider public comments on this review and market rents from comparable and nearby communities. • Other Relevant Factors: The analysis, policies, and programs and ADU assumptions for the planning period should account for the availability of ADUs for rent. This is particularly important given the reliance on ADUs and lack of housing choices, affordability and mobility into the City. • Owner Intentions and Past Surveys: The element concludes the City’s robust outreach and incentives have resulted in 225 residential owners expressing their intentions in developing ADUs in the planning period. However, the element must include substantial evidence to support this conclusion, especially considering even the most favorable recent trends would result in a significantly lesser number of ADUs in the planning period. For example, the element should discuss the survey tool, how the survey was administered, list the actual responses, and evaluate the likelihood of owners converting intentions into permitted ADUs in the planning period, including availability for rent. This analysis could incorporate past surveys and analyses as a result of programs in the prior planning period.

If the above analyses necessitate identifying sites to accommodate the RHNA, including by income group, the identification of sites and analysis must meet all requirements pursuant to Government Code section 65583.2, including but not limited to parcel listing, map of identified sites, identified sites and AFFH, environmental and other constraints, infrastructure, size of sites, nonvacant sites, calculation of realistic residential capacity and appropriate zoning to accommodate housing for lower-income households. For more information, please see the Building Blocks at https://www.hcd.ca.gov/planning-and-community-development/housingelements/building-blocks.

City of Monte Sereno’s 6th Cycle (2023-2031) Draft Housing Element Page 5 January 9, 2023
Environmental Constraints: While the element includes some general discussion of environmental constraints, it should also relate that discussion to the development of ADUs, including any other known constraints that preclude development in the planning period.

Electronic Sites Inventory: For your information, pursuant to Government Code section 65583.3, the City must submit an electronic sites inventory with its adopted housing element. The City must utilize standards, forms, and definitions adopted by HCD.

Please see HCD’s housing element webpage at https://www.hcd.ca.gov/planning-andcommunity-development/housing-elements for a copy of the form and instructions. The City can reach out to HCD at [email protected] for technical assistance.

Zoning for a Variety of Housing Types:
• Multifamily: While the element mentions that the City has established a multifamily zoning district, it must still discuss how multifamily zoning encourages and facilitates a variety of housing types including density, development standards and permit procedures. In addition, the element must identify significant and realistic opportunities for multifamily development in the planning period, including but not limited to identification of sites, any known constraints or impediments, parcel size, appropriateness of densities and methodology for calculating residential capacity. Based on the outcomes of this analysis, the element must include programs to identify sites and appropriate zoning (e.g., 20 units per acre) and development standards to encourage and facilitate multifamily development.
• Emergency Shelters: While the element states that emergency shelters are allowed by-right, it should clarify that by-right is without discretionary action. In addition, the element should add a discussion of acreage, parcel sizes. reuse and redevelopment opportunities and proximity to transportation and services as well as list and analyze development standards, including parking. If constraints are identified, the element must add or revise programs. • By-Right Permanent Supportive Housing: By-right permanent supportive housing shall be a use by-right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses pursuant to Government Code section 65651. The element must demonstrate compliance with this requirement and include programs as appropriate. • Single Room Occupancy (SRO) Units: While the element includes some information on SROs, it must still discuss zoning, development standards and permitting procedures. This is particularly important given the lack of implementation in the prior planning period and programs should be added or modified to establish appropriate zoning and capacity early in the planning period.
• Accessory Dwelling Units: The element must demonstrate that the City’s ADU ordinance is incompliance with state law and add or modify programs to comply with State ADU Law.

City of Monte Sereno’s 6th Cycle (2023-2031) Draft Housing Element Page 6 January 9, 2023
• Manufactured Housing: Manufactured homes that are built on a permanent foundation must be allowed in the same manner and in the same zones as conventional or stick-built structures. Specifically, manufactured homes on a permanent structure should only be subject to the same development standards as a conventional single-family residential dwelling. The element must demonstrate consistency with this requirement or add or modify programs as appropriate.

4. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures... (Gov. Code, § 65583, subd. (a)(5).)
Land Use Controls: While the element generally describes land-use controls, it must evaluate all development standards and other land use controls for impacts on housing supply (number of units), cost, feasibility, timing and ability to achieve maximum densities. For example, the analysis should address how density is defined and any and all standards that regulate intensity, especially for multifamily housing and parking.

In addition, much of the City consists of large lots and there are no multifamily units in the City. While the element lists four residential zoning districts, none of the districts allow more than eight units per acre and, while the City does have a single-family zone allowing five units per acre, most single family zoning is no more than two units per acre. Essentially, there is a lack of a variety of minimum lot sizes and allowable densities. The lack of a variety of lot sizes and densities can impact housing supply, choices and affordability. As a result, the element should include analysis of the impacts of an apparent predominant large lot land use pattern and include programs as appropriate.

Finally, the element should include a discussion of how the City complies with Government Code sections 65852.21 and 66411.7 (SB 9) and add or modify programs (Program E) as appropriate to comply with state law.

Fees and Exaction: The element lists total development fees for single-family and multifamily development (Table C-4) but should also list the various fees that comprise the total fees per unit. For example, the element should list and evaluate the various impact fees per unit for impacts on housing cost.

Processing and Permit Procedures: While the element generally describes processing and permitting procedures, it must still list and evaluate site development permit and design review, including typical approval findings, typical number of hearings, and timing and then evaluate impacts on housing supply, cost, feasibility and approval certainty.

City of Monte Sereno’s 6th Cycle (2023-2031) Draft Housing Element Page 7 January 9, 2023
Streamlining Provisions: The element should clarify whether the City has procedures consistent with streamlining procedures pursuant to Government Code section 65913.4 (SB 35) and include programs as appropriate.

Constraints on Housing for Persons with Disabilities: The element must include an analysis of potential constraints on housing for persons with disabilities, as follows:
• Reasonable Accommodation: The element indicates the City has a reasonable accommodation procedure but must still describe these procedures including approval findings and evaluate potential constraints on housing for persons with disabilities.
• Family Definition: The element concludes the City has a definition of family that does not limit the number of persons. However, the element should describe the actual definition of family and evaluate its potential impacts, including impacts on unrelated persons.
• Group Homes: The element broadly mentions residential care homes are allowed but it should specifically identify which zones allow the uses, how the uses are allowed (e.g., permit type), any other relevant factors and evaluate potential constraints. The analysis should be conducted for both group homes for six or fewer persons and seven or more persons.

Local Ordinances: The element must specifically analyze locally adopted ordinances such as inclusionary ordinances or short-term rental ordinances that directly impact the cost and supply of residential development.

Zoning and Fees Transparency: The element must clarify its compliance with new transparency requirements for posting all zoning and development standards for each parcel on the jurisdiction’s website pursuant to Government Code section 65940.1(a)(1).

C. Housing Programs

1. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing Element... (Gov. Code, § 65583, subd. (c).)
To have a beneficial impact in the planning period and achieve the goals and objectives of the housing element, programs must have discrete timing early in the planning period (e.g., at least annually or by 2025) and specific commitment to housing outcomes (e.g., refrain from language such as “explore”, “develop”, “consider”). Examples of programs to be revised include:
• Program E (Facilitate Subdivision): This program must be revised to add specific commitments to a housing outcome, beyond reviewing regulations.

City of Monte Sereno’s 6th Cycle (2023-2031) Draft Housing Element Page 8 January 9, 2023
• Program G (Develop Incentives): Especially given the lack of progress in the previous planning periods, this program must specifically, proactively, and annually reach out to affordable developers and apply for funding in addition to “at the request of the developer”.
• Program H (Employee Housing): Given the lack of implementation in the prior planning period, the program should commit to amend zoning earlier in the planning period (e.g., by 2024).
• Program I (Accessory Dwelling Units): The program should go beyond “consider removing” restrictive requirements and specifically commit (remove consider) to revise the ADU ordinance in compliance with ADU law. In addition, this program should include annual monitoring of production and affordability and alternative actions (e.g., additional incentives, rezoning) if assumptions not met by a specified date (e.g., within six months).

2. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Government Code section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. (Gov. Code, § 65583, subd. (c)(1).)
As noted in Finding B3, the element does not include a complete site analysis; therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types. In addition, the element should be revised as follows:
• Multifamily Zoning: As noted in Finding B3, the element must include a program to identify sites and appropriate zoning (e.g., 20 units per acre) and development standards to encourage and facilitate multifamily development. • Program P (Low Barrier Navigation Centers): The Program should specifically commit to permit low barrier navigation centers without discretionary action and in compliance with Government Code section 65661.

3. The Housing Element shall contain programs which assist in the development of adequate housing to meet the needs of extremely low-, very low-, low- and moderateincome households. (Gov. Code, § 65583, subd. (c)(2).) The element must include a program to assist in the development of adequate housing to meet the needs of lower and moderate-income households, including ELI and Special Needs households. These actions should be significant and specific, given the lack of implementation and results in the prior planning periods. Examples of actions include proactive an annual outreach to developers of affordable housing, assisting with

City of Monte Sereno’s 6th Cycle (2023-2031) Draft Housing Element Page 9 January 9, 2023
funding, supporting funding applications, land acquisition, priority processing, fee waivers, concessions and incentives beyond State Density Bonus Law, assistance with infrastructure and site improvements and monitoring and adjustment at least annually.

4. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).) As noted in Findings B4 and B5, the element requires a complete analysis of potential governmental and nongovernmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints.

In addition, as noted in Finding B4, the City lacks a variety of minimum lot sizes and densities and the element should add programs to create a variety of lot sizes, increased densities, and modified development standards to facilitate maximum densities.

5. Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics... (Gov. Code, § 65583, subd. (c)(5).)
As noted in Finding B1, the element requires a complete AFFH analysis. Depending upon the results of that analysis, the City may need to revise or add or modify goals and actions. Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific commitment, milestones, geographic targeting and metrics or numerical targets and, as appropriate, address housing mobility enhancement, new housing choices and affordability in higher opportunity or higher income areas, place-based strategies for community revitalization and displacement protection. For example, the element must add significant and meaningful housing mobility actions to overcome the existing patterns in the City related to the broader region.

D. Quantified Objectives
Establish the number of housing units, by income level, that can be constructed, rehabilitated, and conserved over a five-year time frame. (Gov. Code, § 65583, subd. (b)(1 & 2).)
While the element includes quantified objectives for new construction by income level, it currently targets no objectives for rehabilitation and conservation and should be revised accordingly. For example, quantified objectives could incorporate numerical targets for

City of Monte Sereno’s 6th Cycle (2023-2031) Draft Housing Element Page 10 January 9, 2023
ADU amnesty or anticipated outcomes from Programs Q (Housing Maintenance), R (Infrastructure Capital Improvements), S (Energy Conservation), T (Water Conservation) and U (Fair Housing).

E. Public Participation
Local governments shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the Housing Element, and the element shall describe this effort. (Gov. Code, § 65583, subd.(c)(9).) The element should employ additional methods of public outreach and participation moving forward to include all segments of the community in the public participation process, including engaging organizations which represent lower-income and special needs groups. In addition, the element should describe comments and how they were incorporated into the housing element.

Number Section Comment Response/Revision Made to Housing Element Page/Location
of Revision in
Housing
Element
A Review and
Revision -
Previous
Housing
Element Goals
and Policies
The review requirement is one of the most important features of the element update. The review of past programs should describe progress in implementation of previous actions, including results compared to objectives and evaluate the effectiveness of actions to make appropriate adjustments in the current planning period. In several cases, the element appears to either omit or not describe and evaluate actions from the prior planning period. Most notably, the review and revise does not evaluate actions related to accommodating the regional housing need allocation (RHNA) (accessory dwelling units (ADU)), providing realistic opportunities for multifamily development and outreach to affordable housing developers, including nonprofits. These programs were geared toward promoting housing variety and affordability, housing mobility and inclusion into Monte Sereno. Yet, the current element does not evaluate past commitments or consider appropriate actions. For example, Program H-2.5 committed to establish multifamily zoning and if not successful, provide alternative multifamily opportunities and amend the element to correct inconsistencies. The Program also committed to make specific outreach to developers of housing affordable to lower income and special needs households and apply for funding. The current element includes some discussion that the multifamily zoning was repealed and instead a project was developed on a multifamily zoned site. The project occurred on a site that was committed to be zoned multifamily in the prior planning period for the same reasons (See Program HE 3.10 from the 4th cycle) – to promote a variety of housing types. Instead, the site was zoned at precariously marginal densities and that development ended up being single-family – not multifamily. The element omits the depth and importance of this commitment and did not discuss or evaluate the effectiveness of multifamily zoning, lack of alternative measures taken and outreach efforts. Other examples of programs geared toward promoting housing variety, mobility and affordability from the prior review include:

A review of the programs from the 5th Cycle Housing
Element was included in Appendix E of the draft
Housing Element. Additional information has been
added to the review of prior programs as noted in the
comment. And a cumulative analysis has been added.

Pages E-3 through E15
• Program HE-2.1 (Evaluate ADU): The element does not discuss changes to development standards, results of the survey or achieving the program objectives.
• Program HE-2.2 (Shared Housing): The element does not address contacting agencies or publicizing the program. • Program HE-2.3 (ADU Monitoring): This program had a specific trigger to revise multifamily zoning and densities if ADUs for all income were not constructed in specified time intervals. The current element omits any discussion of these commitments.
• Program HE-4.1 (Special Needs): The element does not discuss the attempts, success or effectiveness of outreach with non-profit developers.
• Program HE-4.2 (Senior Housing): The Program’s focus was to develop innovative housing. Instead, the element discusses the City’s attempts at partnerships with the County Department of Aging.

Department of Housing and Community Development
Comments on Draft Housing Element - January 24, 2023

Number Section Comment Response/Revision Made to Housing Element Page/Location
of Revision in
Housing
Element
In addition, the element must provide an evaluation of the cumulative effectiveness of past goals, policies, and related actions in meeting the housing needs of special needs populations (e.g., elderly, persons with disabilities, large households, female-headed households, farmworkers, and persons experiencing homelessness) and revise programs as appropriate.

B.1 Housing
Needs,
Resources, and
Constraints
Income and Racial Concentration of Affluence (RCAA): The element briefly mentions incomes in the City compared to the region and notes it is safe to speculate the City has neighborhoods that are RCAAs; however, the entire City is a RCAA and the element should incorporate this information. Please see HCD’s Affirmatively Furthering Fair Housing (AFFH) Data Viewer at https://affh-data-resources-cahcd.hub.arcgis.com/. The element should include specific analysis of income and RCAA at a regional level (City compared to the broader region). The analysis should at least address trends, conditions, coincidence with other fair housing factors (e.g., race, highest resource, overpayment), effectiveness or absence of past strategies (e.g., lack of publicly assisted housing and lack of multifamily zoning), local data and knowledge and other relevant factors. The element must add or modify meaningful programs based on the outcomes of this analysis, including actions to improve housing mobility within and beyond City boundaries.

Additional information has been added stating the
entire city is a RCAA and the additional data requested has been included.

The ADU strategy allows and encourages ADU
construction throughout the city which avoids
concentrating affordable housing in certain areas of the city. A map has been added to show the locations of
the 225 ADU intention letter received to show the ADU
construction will occur throughout the city.

Information has been provided to note that as a result
of SB-9, up to four dwelling units are allowed on each
single family lot, regardless of lot size, which increases the density of housing in the City and provide multifamily housing.

Pages A-17 through
A-21, 4-7, and C-11
through C-12
Local Data and Knowledge and Other Relevant Factors: The element includes state and federal data but must utilize other sources of local data and knowledge to supplement the data and mapping including planning documents such as locally adopted ordinances, other elements of the general plan, infrastructure assessments, and mobility assessments to fully describe the impacts on fair housing patterns and trends. In addition, the element must discuss other relevant factors such as historical land use (zoning, initiatives, growth control) that impacted socio-economic patterns.

Additional information has been added about the city's
land use and zoning history. And a discussion about
how the historical trends that created the RCAA are
being reversed.

Page A-12
Contributing Factors to Fair Housing Issues: Upon a complete AFFH analysis, the element must assess and prioritize contributing factors to fair housing issues and add or modify programs as appropriate.

Program J has been expanded to strengthen the city's
commitment to supporting agencies that provide
housing support services for special needs populations
in the West Valley region. The City's commitments may
include informational services and/or annual funding
commitments.

Number Section Comment Response/Revision Made to Housing Element Page/Location
of Revision in
Housing
Element
B.2 Housing
Needs,
Resources, and
Constraints
Extremely Low-Income (ELI) Households: While the element quantifies existing ELI households, it must also identity projected ELI housing needs and analyze their housing needs. The projected housing need for ELI households can be calculated by using available census data to determine the number of very low-income households that qualify as ELI households or presume that 50 percent of the RHNA for very low-income households qualify as ELI households. The analysis of existing ELI housing needs should address tenure, disproportionate impacts (overcrowding, overpayment, housing situations), comparisons to other income groups, effectiveness of past strategies and magnitude of needs (including projected).

Additional information has been added to address the
assumed ELI population as noted. Information also
included to explain how existing policies and programs, including the ADU program, address the ELI population.

Pages 1-2 thorugh 1-
3, B-9 through B10, B-50 through B51
Housing Conditions: While the element includes information on the age of structures and lack of kitchen and plumbing facilitate, it must still estimate the number of units in need of rehabilitation and replacement. In addition, the element could consider discussion of any patterns from code enforcement as areas of more frequent enforcement to compliment the assessment of fair housing (See AFFH above, including local knowledge).

The city does not have data showing any existing
housing units are sub-standard or in need or
rehabilitation. No such housing conditions have been
identified by staff or received as a code enforcement
complaint. Additional information has been added to
explain that code enforcement complaints received
have not been related to sub-standard housing.

Pages A-29 and 3-6
Housing Costs: The element currently utilizes American Community Survey (ACS) data to evaluate rental costs but should consider additional data sources to better reflect market conditions (e.g., Zillow, Apartments.com). If minimal rental data is available, the element could consider market conditions in comparable nearby communities.

Additional rental data has been included as noted in the comment. However, the data from the City's annual
ADU survey will be most accurate for Monte Sereno.

Pages 4-8 and B-25
through B-26
Special Needs: While the element reports data on special needs groups, it must still include analysis including trends, characteristics, magnitude of need, resources, and potential strategies to mitigate identified housing issues.

Additional discussion has been added to describe in
more detail how special needs populations (including
the new low and moderate income ADUs) will be
assisted with these programs.

Page B-53

Number Section Comment Response/Revision Made to Housing Element Page/Location
of Revision in
Housing
Element
B.3 Housing
Needs,
Resources, and
Constraints
Adequate Sites and Accessory Dwelling Units (ADU): The element identifies a RHNA of 193 units, including a lower-income RHNA of 83 units and moderate-income RHNA of 31 units and proposes to accommodate essentially the entire RHNA for all income groups with ADUs. While the element may demonstrate adequate sites entirely with ADUs, given the reliance on one strategy, it must include robust and commensurate analysis, as follows:
• Calculation of Past Trends: The element excludes 2020 permit numbers and then average permits to approximately 16 ADUs per year. However, even this calculation is incorrect and appears to exclude 2018 and 2020 numbers. Given the reliance on ADUs, the element should utilize averages based on all years since 2018. • Affordability: The element uses the Association of Bay Area analysis of ADU rents. However, these assumptions should consider public comments on this review and market rents from comparable and nearby communities. • Other Relevant Factors: The analysis, policies, and programs and ADU assumptions for the planning period should account for the availability of ADUs for rent. This is particularly important given the reliance on ADUs and lack of housing choices, affordability and mobility into the City.
• Owner Intentions and Past Surveys: The element concludes the City’s robust outreach and incentives have resulted in 225 residential owners expressing their intentions in developing ADUs in the planning period. However, the element must include substantial evidence to support this conclusion, especially considering even the most favorable recent trends would result in a significantly lesser number of ADUs in the planning period. For example, the element should discuss the survey tool, how the survey was administered, list the actual responses, and evaluate the likelihood of owners converting intentions into permitted ADUs in the planning period, including availability for rent. This analysis could incorporate past

Calculation of past trends - Calculations based on
historical ADU construction have been adjusted as
noted.

Affordability - Additional information from Zillow on
market rents has been added to analysis. As well as a
response to the public comments that were received.

Other Relevant Factors - Information has been provided
on market rates and availability of ADUs for rent.

Owner Intentions and Past Surveys - Information has
been added from the past annual ADU survey's
conducted that show how the ADUs constructed are
used and the rental income category for rented units.

This data shows that a vast majority of ADUs are used
as dwelling units and rented at a low income level.

Pages 4-6 through 4-
8, B-25 through B26
Environmental Constraints: While the element includes some general discussion of environmental constraints, it should also relate that discussion to the development of ADUs, including any other known constraints that preclude development in the planning period.

Information has been added noting that the Council
adopted Ordinance NS-232 on December 20, 2022
which removes the owner-occupancy requirements for
past and future ADUs as well as provides a strong
amnesty program that exceeds the minimum
timeframes required by state law. These were two
issues that were identified as constraints to ADU
construction.

Program I includes on-going monitoring of the ADU
requirements, including feedback and questions
received by property owners, to determine where
additional constraints can be removed.

2-12 and C-8

Number Section Comment Response/Revision Made to Housing Element Page/Location
of Revision in
Housing
Element
Electronic Sites Inventory: For your information, pursuant to Government Code section 65583.3, the City must submit an electronic sites inventory with its adopted housing element. The City must utilize standards, forms, and definitions adopted by HCD. Please see HCD’s housing element webpage at https://www.hcd.ca.gov/planning-and-communitydevelopment/housing-elements for a copy of the form and instructions. The City can reach out to HCD at [email protected] for technical assistance.

Although the Government Code Section 65583.1(a)
does not require a sites inventory when alternative
methods are used, such as ADUs, an electronic sites
inventory was provided with the Draft Housing Element
submittal. This will be included again when the revised Housing Element is submitted to HCD.

See Excel File
Multifamily: While the element mentions that the City has established a multifamily zoning district, it must still discuss how multifamily zoning encourages and facilitates a variety of housing types including density, development standards and permit procedures. In addition, the element must identify significant and realistic opportunities for multifamily development in the planning period, including but not limited to identification of sites, any known constraints or impediments, parcel size, appropriateness of densities and methodology for calculating residential capacity. Based on the outcomes of this analysis, the element must include programs to identify sites and appropriate zoning (e.g., 20 units per acre) and development standards to encourage and facilitate multifamily development.

The city does have a multi-family zoning district that
allows up to three units on a lot with a minimum lot
size of 14,520 square feet. Additionally, the SB-9 state regulations allow up to four dwelling units on every
single family zoned lot, regardless of lot size.

A program has been added to evaluate additional multifamily zoned sites, including the application of SB-10, throughout the city as well as any potential
annexations.

Pages 2-16, C-11
through C-12
Emergency Shelters: While the element states that emergency shelters are allowed by-right, it should clarify that by-right is without discretionary action. In addition, the element should add a discussion of acreage, parcel sizes. reuse and redevelopment opportunities and proximity to transportation and services as well as list and analyze development standards, including parking. If constraints are identified, the element must add or revise programs.

The language in the Housing Element has been updated
to specify that emergency shelters are allowed by-right in the "P" zoning district and that discretionary action is not required.

The Housing Element has also been revised to analyze
the facilities noted in the comment and a program
added to consider coordination with other West Valley
cities (Saratoga, Los Gatos, Campbell, and Cupertino) to address homelessness in the region.

Number Section Comment Response/Revision Made to Housing Element Page/Location
of Revision in
Housing
Element
By-Right Permanent Supportive Housing: By-right permanent supportive housing shall be a use by-right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses pursuant to Government Code section 65651. The element must demonstrate compliance with this requirement and include programs as appropriate.

The City allows supporting housing by-right within the R1-44, R-1-20, R-1-8, and RM zoning districts. A program has been added to amend the Municipal Code to allow
supportive housing in the "P" zoning district.

Single Room Occupancy (SRO) Units: While the element includes some information on SROs, it must still discuss zoning, development standards and permitting procedures. This is particularly important given the lack of implementation in the prior planning period and programs should be added or modified to establish appropriate zoning and capacity early in the planning period.

The City allows Single Room Occupancy (SROs)
(Transitional Housing and Supportive Housing) by-right
within the R-1-44, R-1-20, R-1-8, and Rm zoning
districts. A program has been added to amend the
Municipal Code to allow supportive housing in the "P"
zoning district.

Accessory Dwelling Units: The element must demonstrate that the City’s ADU ordinance is incompliance with state law and add or modify programs to comply with State ADU Law.

The City's ADU ordinance is in compliance with the
state law, most recently with the adoption of ordinance NS-232 on December 20, 2022, which updates the
ordinance to comply with state laws effective on
January 1, 2023.

Manufactured Housing: Manufactured homes that are built on a permanent foundation must be allowed in the same manner and in the same zones as conventional or stick-built structures. Specifically, manufactured homes on a permanent structure should only be subject to the same development standards as a conventional single-family residential dwelling.

The element must demonstrate consistency with this requirement or add or modify programs as appropriate.

The Municipal Code does not prohibit manufactured
homes, and a new manufactured ADU was recently
permitted. The city complies with Government Code
Section 65852.3 in allowing manufactured homes in the
same manner as conventional structures. When the city
updates the Objective Design Standards, a specific
standard will be added to further confirm that
manufactured homes will be reviewed as required by
this Government Code Section.

Page C-11

Number Section Comment Response/Revision Made to Housing Element Page/Location
of Revision in
Housing
Element
B.4 Housing
Needs,
Resources, and
Constraints
Land Use Controls: While the element generally describes land-use controls, it must evaluate all development standards and other land use controls for impacts on housing supply (number of units), cost, feasibility, timing and ability to achieve maximum densities. For example, the analysis should address how density is defined and any and all standards that regulate intensity, especially for multifamily housing and parking.

In addition, much of the City consists of large lots and there are no multifamily units in the City. While the element lists four residential zoning districts, none of the districts allow more than eight units per acre and, while the City does have a single-family zone allowing five units per acre, most single family zoning is no more than two units per acre. Essentially, there is a lack of a variety of minimum lot sizes and allowable densities. The lack of a variety of lot sizes and densities can impact housing supply, choices and affordability. As a result, the element should include analysis of the impacts of an apparent predominant large lot land use pattern and include programs as appropriate.

Finally, the element should include a discussion of how the City complies with Government Code sections 65852.21 and 66411.7 (SB 9) and add or modify programs (Program E) as appropriate to comply with state law.

A large portion of the lots in Monte Sereno are large
lots and zoned single family. However, the City will be able to achieve the RHNA requirements through the
construction of new ADUs. As noted in comment B.3
above, a program has been added to review potential
multi-family zoning, including SB-10 applications, as
appropriate throughout the city, including for any
annexed lots.

Program E has been updated to clarify that the city's
current requirements are compliant with the SB 9 state
legislation, but opportunities to streamline the review process will be researched.

Pages 2-8 and 2-16
Fees and Exaction: The element lists total development fees for single-family and multifamily development (Table C-4) but should also list the various fees that comprise the total fees per unit. For example, the element should list and evaluate the various impact fees per unit for impacts on housing cost.

The impact fees that are charged for residential
projects include Road Impact Fees and School Impact
Fees, depending on the scope of the project. These fees were included in Table C-3 on page C-9.

Pages C-14 through
C-15
Processing and Permit Procedures: While the element generally describes processing and permitting procedures, it must still list and evaluate site development permit and design review, including typical approval findings, typical number of hearings, and timing and then evaluate impacts on housing supply, cost, feasibility and approval certainty.

Information about permit processing timeframes was
provided in the Draft Housing Element in Table C-5 on
page C-11. Also, pages C-10 to C-11 describe the
timeframe for processing applications and the public
hearing requirements. The Draft Housing Element also
includes Program A which requires review of the permit
processing timeframes to see where streamlining may
be provided.

Pages C-16 through
C-17
Streamlining Provisions: The element should clarify whether the City has procedures consistent with streamlining procedures pursuant to Government Code section 65913.4 (SB 35) and include programs as appropriate.

The City has not adopted permit streamlining
procedures for SB 35 projects as the City is currently in compliance with the RHNA requirements from the 5th
Cycle Housing Element and not subject to SB 35
development applications. However, if, in the future,
the city is subject to SB 35, applications will be
processed as required by the referenced state laws.

Page C-11

Number Section Comment Response/Revision Made to Housing Element Page/Location
of Revision in
Housing
Element
Constraints on Housing for Persons with Disabilities: The element must include an analysis of potential constraints on housing for persons with disabilities, as follows:
• Reasonable Accommodation: The element indicates the City has a reasonable accommodation procedure but must still describe these procedures including approval findings and evaluate potential constraints on housing for persons with disabilities.
• Family Definition: The element concludes the City has a definition of family that does not limit the number of persons.

However, the element should describe the actual definition of family and evaluate its potential impacts, including impacts on unrelated persons.
• Group Homes: The element broadly mentions residential care homes are allowed but it should specifically identify which zones allow the uses, how the uses are allowed (e.g., permit type), any other relevant factors and evaluate potential constraints. The analysis should be conducted for both group homes for six or fewer persons and seven or more persons.

The revised Housing Element includes the details of the Municipal Code requirements for the three items
mentioned. The code requirements for the items noted
do not constrain potential housing development and
that has been explained in the revised Housing
Element.

Pages C-12 through
C-14
Local Ordinances: The element must specifically analyze locally adopted ordinances such as inclusionary ordinances or short-term rental ordinances that directly impact the cost and supply of residential development.

The city does not have an inclusionary ordinance and
does not allow short term rentals. Therefore, these
items do not directly impact the cost and supply of
residential development within the city.

Page C-16
Zoning and Fees Transparency: The element must clarify its compliance with new transparency requirements for posting all zoning and development standards for each parcel on the jurisdiction’s website pursuant to Government Code section 65940.1(a)(1).

Information required by Government Code section
65940.1(a)(1) is available on the following web pages:
https://www.montesereno.org/DocumentCenter/View/
3754/Fee-Schedule
https://www.montesereno.org/2339/ApplicationForms
https://www.montesereno.org/2342/Zoning-andDevelopment-Standards https://www.montesereno.org/2339/ApplicationForms
https://www.montesereno.org/2187/FinanceDepartment
This information has been included in the revised
Housing Element.

Page C-15

Number Section Comment Response/Revision Made to Housing Element Page/Location
of Revision in
Housing
Element
C.1 Housing
Programs
To have a beneficial impact in the planning period and achieve the goals and objectives of the housing element, programs must have discrete timing early in the planning period (e.g., at least annually or by 2025) and specific commitment to housing outcomes (e.g., refrain from language such as “explore”, “develop”, “consider”) Wording of the programs has been updated to provide
more specific anticipated outcomes and the timing of
programs have been revised to move forward higher
priority programs.

Pages 2-7 through 2-
21 C.2 Housing
Programs
As noted in Finding B3, the element does not include a complete site analysis; therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types. In addition, the element should be revised as follows:
• Multifamily Zoning: As noted in Finding B3, the element must include a program to identify sites and appropriate zoning (e.g., 20 units per acre) and development standards to encourage and facilitate multifamily development. • Program P (Low Barrier Navigation Centers): The Program should specifically commit to permit low barrier navigation centers without discretionary action and in compliance with Government Code section 65661.

As noted in comment B.3, a program has been added to
evaluate additional multi-family zoned sites, including the application of SB-10, throughout the city as well as any potential annexations.

The wording of Program P has been updated as noted.

C.3 Housing
Programs
The element must include a program to assist in the development of adequate housing to meet the needs of lower and moderate-income households, including ELI and Special Needs households. These actions should be significant and specific, given the lack of implementation and results in the prior planning periods. Examples of actions include proactive an annual outreach to developers of affordable housing, assisting with funding, supporting funding applications, land acquisition, priority processing, fee waivers, concessions and incentives beyond State Density Bonus Law, assistance with infrastructure and site improvements and monitoring and adjustment at least annually.

Most of the requested efforts are included in Program
G. The wording of the program has been updated to
strengthen the efforts included. However, providing
funding for land acquisition and infrastructure
improvement is an unrealistic expectation for a city
with approximately 1,200 households, an annual
operating budget of $3.5 million, and that employs one
planner. The institution capacity is not available for
funding opportunities without additional resources or
contributions from the state.

Number Section Comment Response/Revision Made to Housing Element Page/Location
of Revision in
Housing
Element
C.4 Housing
Programs
As noted in Findings B4 and B5, the element requires a complete analysis of potential governmental and nongovernmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints.

In addition, as noted in Finding B4, the City lacks a variety of minimum lot sizes and densities and the element should add programs to create a variety of lot sizes, increased densities, and modified development standards to facilitate maximum densities.

As noted in comment B.3, a program has been added to
evaluate additional multi-family zoned sites, including the application of SB-10, throughout the city as well as any potential annexations.

As noted in comment B.2, additional information has
been added to explain the ADU strategy allows and
encourages ADU construction throughout the city
which avoids concentrating affordable housing in
certain areas of the city. A map has been included to
show the location s of the 225 ADU intention letter
received to show the ADU construction will occur
throughout the city.

Also noted in comment B.1, further information has
been provided to note that as a result of SB 9, up to
four dwelling units are allowed on each single family
lot, regardless of lot size, which increasing the density of housing in the City and provide multi-family housing.

Pages 2-8, 2-16, 4-
7, and C-11 through
C-12
C.5 Housing
Programs
As noted in Finding B1, the element requires a complete AFFH analysis. Depending upon the results of that analysis, the City may need to revise or add or modify goals and actions. Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific commitment, milestones, geographic targeting and metrics or numerical targets and, as appropriate, address housing mobility enhancement, new housing choices and affordability in higher opportunity or higher income areas, place-based strategies for community revitalization and displacement protection. For example, the element must add significant and meaningful housing mobility actions to overcome the existing patterns in the City related to the broader region.

An AFFH analysis was provided in Appendix G to the
Housing Element. Staff believes the City's ADU effort
will address the concern concentrating affordable
housing units within certain geographic areas of the city as the ADU will be provided throughout the city as
demonstrated by the written ADU intentions received.

The revised Housing Element includes a map that shows
the locations of the ADU intention letter received. The document has been revised to more explicitly address
the comment.

D Quantified
Outreach
While the element includes quantified objectives for new construction by income level, it currently targets no objectives for rehabilitation and conservation and should be revised accordingly. For example, quantified objectives could incorporate numerical targets for ADU amnesty or anticipated outcomes from Programs Q (Housing Maintenance), R (Infrastructure Capital Improvements), S (Energy Conservation), T (Water Conservation) and U (Fair Housing).

As noted in comment B.2 above, the City does not have
evidence of existing housing that is sub-standard and in need of rehabilitation. Quantified objective have been
added to the programs as noted by HCD.

Page2-21

Number Section Comment Response/Revision Made to Housing Element Page/Location
of Revision in
Housing
Element
E Public
Participation
The element should employ additional methods of public outreach and participation moving forward to include all segments of the community in the public participation process, including engaging organizations which represent lowerincome and special needs groups. In addition, the element should describe comments and how they were incorporated into the housing element.

Additional information has been added about the City's
partnership with West Valley Community Services for
input and outreach during the Housing Element update
process.

The document provided to HCD included an attachment
noting how each public comment was addressed. This
information has been incorporated in the actual revised Housing Element document.

Pages 1-14 through
1-13 and 2-1
through 2-3

RESOLUTION NO. ______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MONTE SERENO ADOPTING A GENERAL PLAN AMENDMENT TO ADOPT THE 2023-2031 MONTE SERENO HOUSING

ELEMENT OF THE GENERAL PLAN IN COMPLIANCE WITH STATE HOUSING ELEMENT LAW.

WHEREAS, the California Legislature has found that “California has a housing supply and affordability crisis of historic proportions. The consequences of failing to effectively and aggressively confront this crisis are hurting millions of Californians, robbing future generations of the chance to call California home, stifling economic opportunities for workers and businesses, worsening poverty and homelessness, and undermining the state’s environmental and climate objectives” (Gov. Code Section 65589.5.); and
WHEREAS, the Legislature has further found that “[a]mong the consequences of those actions are discrimination against low-income and minority households, lack of housing to support employment growth, imbalance in jobs and housing, reduced mobility, urban sprawl, excessive commuting, and air quality deterioration” (Gov. Code Section 65589.5); and WHEREAS, the Legislature recently adopted the Housing Crisis Act of 2019 (SB 330) which states that “In 2018, California ranked 49th out of the 50 states in housing units per capita… California needs an estimated 180,000 additional homes annually to keep up with population growth, and the Governor has called for 3.5 million new homes to be built over 7 years”; and
WHEREAS, State Housing Element Law (Government Code Sections 65580 et seq.) requires that the City Council adopt a Housing Element for the eight-year period 2023-2031 to accommodate the City of Monte Sereno’s regional housing need allocation (RHNA) of 193 housing units, comprised of 53 very-low income units, 30 low-income units, 31 moderateincome units, and 79 above moderate-income units; and WHEREAS, California Government Code section 65300.9 states that with respect to the adoption and administration of general plans, “[t]he Legislature recognizes that the capacity of California cities and counties to respond to state planning laws varies due to the legal differences between cities and counties, both charter and general law, and to differences among them in physical size and characteristics, population size and density, fiscal and administrative capabilities, land use and development issues, and human needs” and further states that “the intent of the Legislature in enacting this chapter [is] to provide an opportunity for each city and county to coordinate its local budget planning and local planning for federal and state program activities, such as community development, with the local land use planning process, recognizing that each city and county is required to establish its own appropriate balance in the context of the local situation when allocating resources to meet these purposes”; and WHEREAS, to comply with State Housing Element Law, Monte Sereno has prepared Housing Element 2023-2031 (the Housing Element) in compliance with State Housing Element Law and has identified sites that can accommodate housing units meeting the City’s RHNA; and WHEREAS, as provided in Government Code Section 65350 et. seq., adoption of the Housing Element constitutes a General Plan Amendment; and

WHEREAS, as provided in Government Code Sections 65352 – 65352.5 the City mailed a public notice to all California Native American tribes provided by the Native American Heritage Commission and to other entities listed; and
WHEREAS, no California Native American tribe requested consultation; and WHEREAS, the City conducted extensive community outreach over the last 12 months including 14 public meetings and community meetings; and WHEREAS, the City reviewed the project's environmental impacts under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and the regulations promulgated thereunder (14 California Code of Regulations §§ 15000, et seq., the "CEQA Guidelines”). The proposed Housing Element will not have the effect of substantially changing regulatory standards or findings required therefore in accordance with CEQA, the proposed ordinance is exempt from CEQA pursuant to Section 15061(b) (3) because the activity is governed by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment, and any changes to the City municipal code as may be required by the proposed Housing Element will be reviewed for environmental impacts at such time as they are adopted or implemented; and
WHEREAS, the City determined that the Housing Element Update is exempt from further review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and the regulations promulgated thereunder (14 California Code of Regulations §§ 15000, et seq., the "CEQA Guidelines"), that in accordance with the California Environmental Quality Act (CEQA), the City reviewed the project's environmental impacts under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and the regulations promulgated thereunder (14 California Code of Regulations §§ 15000, et seq., the "CEQA Guidelines") and deemed the project to be exempt from further CEQA review pursuant to section 15332 (Class 32 In-Fill Development Projects), in that all of the likely development envisioned under the revised Housing Element consists of in-fill projects that would add additional housing on land already zoned for such residential uses, on parcels smaller than five acres surrounded by urban uses, on sites that are not habitat for threatened, endangered or rare species, where no significant effects to traffic, noise, air or water quality are anticipated, and where sufficient utilities and public services exist, as well as under section 15303, in that development is anticipated to result in construction primarily of residential developments in existing residential zones as specified in section 15303(a);; and WHEREAS, in accordance with Government Code Section 65585 (b), on August 9, 2022, the City posted the draft Housing Element and requested public comment for a 30-day review period, and on October 11, 2022, after responding to public comments, the City submitted the draft Housing Element to the State Department of Housing and Community Development (HCD) for its review; and
WHEREAS, on January 9, 2023 the City received a letter from HCD providing its comments and findings regarding the draft Housing Element; and WHEREAS, on January 31, 2023, the City Council, as the City’s planning agency, and Site and Architectural Commission held a special joint meeting and conducted a duly and properly noticed public hearing to take public testimony and consider this Resolution regarding the proposed 2023-2031 Monte Sereno Housing Element, reviewed the 2023-2031 Monte Sereno Housing Element and all pertinent maps, documents and exhibits, including HCD’s

findings, the City’s response to HCD’s findings, the staff report and all attachments, and oral and written public comments;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Monte Sereno, as follows:

Section 1. The foregoing recitals are true and correct and are incorporated by reference into this action.

Section 2. The 2023-2031 Monte Sereno Housing Element substantially complies with Housing Element Law, as provided in Government Code 65580 et seq., and contains all provisions required by State Housing Element Law, as shown in Attachment A to this resolution, incorporated herein.

Section 3. As required by Government Code Section 65585(e), the City Council has considered the findings made by the Department of Housing and Community Development included in the Department’s letter to the Monte Sereno dated January 9, 2023, consistent with Government Code Section 65585(f), the City Council has changed the 2023-2031 Monte Sereno Housing Element in response to the findings of the Department to substantially comply with the requirements of State Housing Element Law as interpreted by HCD.

Section 4. The 2023-2031 Monte Sereno Housing Element, as shown in Attachment A to this Resolution, incorporated herein, is hereby adopted, and the 2015-2023 Monte Sereno Housing Element is hereby repealed.

Section 5. This Resolution shall become effective upon adoption by the City Council.

Section 6. The City Manager or designee is hereby directed to file all necessary material with the Department of Housing and Community Development for the Department to find that the 2023-2031 Monte Sereno Housing Element is in conformance with State Housing Element Law and is further directed and authorized to make all non-substantive changes to the 2023-2031 Monte Sereno Housing Element to make it internally consistent or to address any non-substantive changes or amendments requested by the Department to achieve certification.

Section 7. The City Manager or designee is hereby directed to distribute copies of the Housing Element in the manner provided in Government Code Sections 65357 and 65589.7.

REGULARLY APPROVED this 31st day of January 2023 by the following roll call vote:

Ayes:

Noes:

Abstain:

Absent:

Bryan Mekechuk, Mayor

Attest: ___________________________
Gloisy Gonzalez-Langarica, City Clerk

Attachment A: 2023-2031 Monte Sereno Housing Element

Consider Adoption of the 6th Cycle Housing Element
(CEQA: Exempt, Guidelines sections 15303, 15332, 15061) Attachment 4.

Monte Sereno 2023-2031 Housing Element is available online at https://athomeinmontesereno.com/

1 Diana Perkins
From: Alex Qiao <[email protected]>
Sent: Friday, January 20, 2023 8:45 PM
To: Diana Perkins; Bryan Mekechuk; City Manager
Cc: Burton Craig; Rowena Turner; Evert Wolsheimer; Javed Ellahie Subject: Comments about Monte Sereno housing elements draft update Dear City planner Diana, Mr. Mayor, Mr. City manager and City council members, I am writing to you to follow up the housing element discussion we had at Tuesday's council meeting and want to share my comments and concerns. City staff did tremendous work on this important program and we, as residents of Monte Sereno, respect the effort and would like to participate in the discussion to make the program meaningful and successful. I am seeing this as an opportunity to help our city become a better community.

Among many aspects of HCD's feedback, the one that has been repeatedly brought up in feedback section A, B3 and B4, is the comments about the lack of the variety of minimum lot sizes and allowable densities. Granted the ADU strategy is great to provide additional housing units, but to a city, it needs more choices and varieties. So a more comprehensive strategy is necessary.

Please consider making some amendments, not only providing additional information, but further investigate any other options to complement the current housing element draft. Here are some of my thoughts:

1. Reconsidering the rezoning option. It is practical, more flexible and more manageable.

2. Prioritize SB9 modification. It will encourage homeowners to develop more housing units that will be much more accountable than ADUs.

3. More effective and in-depth public involvement. That will generate comprehensive strategies to meet the needs from many aspects that city council and staff may not be aware of in the real world.

Rezoning
Monte sereno consists of large lots but there are no multifamily units in the City. If a multifamily zone is not the city of Monte Sereno's favorite plan, then rezoning is much more practical to accomplish the same goal. We have lots of R144 zones that used to be farm lands, most of which are no longer needed and no longer used for that purpose. City should rezone the obsolete zoning to fit better in the current society. We can see many vacant lots that have not been in use and lack maintenance. The good news is that back in 2022, the staff had curated and analyzed the city's lot inventory, they had identified nine (and maybe more at a later time) existing lots as candidates that are suitable for rezoning (to R-1-8).

Those nine lots can accommodate up to 86 new housing units. As an example, with a rezone and subdivision of a one acre lot , it can develop 4 - 5 single family houses plus ADUs, that gives up to 10 units in total on a lot, where it currently only has one main unit occupying the one acre land. Can we bring rezoning back to discussion and see if we can refine the idea and make use of it in the updated draft for this housing element 6th cycle? This will help the city to grow the number of housing units in a manageable manner. City and site architect committee would be closely involved for such development to ensure the integrity and character of the city, while it is providing higher density. Especially for those vacant lands, it will be in good use and serve a good purpose for people that are struggling with their housing situation.

This is a great organic growth of a city without sacrificing the legacy and the character we are all trying to protect.

Utilize SB9 and beyond
From Staff recommendation in the latest staff report on this Tuesday's council meeting, it states that "as a result of SB 9, up to four dwelling units are allowed on each single family lot, regardless of lot size, which increases the density of housing in the City and provides multi- family housing". The statement is absolutely correct. However, given the current circumstance, it is not practical in Monte Sereno, and thus not very convincing. From the Staff report of City Council meeting on Apr 19 2022, "Staff has received numerous inquiries over the past several months from customers regarding potential SB-9 projects; however, no applications have been submitted. The feedback received has consistently stated that the 800 square foot building size limit makes an SB-9 project impractical." So clearly in reality, the current constraint in the City's SB9 ordinance is the barrier for adoption. If only the City can modify the ordinance, eliminating the constraints such as square foot limit and other aspects, home owners will be encouraged to develop more house units on their land.

The concerns were mentioned by some of the prior council members as overcrowded and unregulated housing units development would result from the abuse of the SB9. But believe it or not, the market will have the magic power to regulate. Outreaching to developers, to homeowners, people will have a realistic plan for the house units that fit to the region. I truly hope, City can give people a chance to utilize SB9 for their land. I understand that the city's schedule says

2 SB9 will be discussed 2023‐2024, but right now is a perfect time to take the leap and prioritize the effort and push it through in the earliest time frame. As far as I know, long process time is also a constraint for complying with state housing law and should be eliminated. And besides, it will help to support the current housing element and make it look much better that the City is taking the HCD feedback seriously and make adjustments accordingly.

Moreover, the city should have planned beyond 193 units with enough buffer room that were allocated by RHNA, which marks the minimum should be met. The number of ADU intention forms that the city provided, is the maximum theoretical yield. And using the maximum theoretically yield to meet the HCD's bare minimum requirement is not a safe plan. Not to mention, HCD had raised the question of the legitimacy of ADU intention survey, the actual tool and response from the owner. And that all significantly affects the actual conversion rate from intention to action. So in combination with all the factors, the exclusive ADU strategy that Monte Sereno proposed might not be sufficient. As I commented, a more comprehensive plan will be more convincing and will be a much better holistic strategy to tackle the housing element for our city.

Public participation
I am sure the City is trying to do its best “diligent effort...to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort." I see several listed efforts for outreaching. But honestly, myself as a resident that would like to proactively participate in this housing element process, I still feel a lack of communication, especially in an interactive way to fully express myself. I've been talking to the city planner in person, I've joined council meetings when I can and had a few email communications. One thing I felt lacking is the looping back. If possible, would we have any opportunity to talk to Mr. Mayor, City planner and or city manager, council members, individually or as a meeting, in person or zoom conference, preferably interactive communication that is beyond the limited 3 minute comments section in the council meeting? I know you all have very busy schedules, but I would like to see if that is possible. Please let me know if that could happen and I'd love to clear my calendar to meet you folks. I can't wait to talk to you.

Last but not least, congratulations to all the new council members, Mr. Mayor, and thank you for taking up the great responsibilities to serve our city. I sincerely wish we will make our city stronger in 2023 and beyond.

Thanks for reading,
Alex Qiao
Residents of Monte Sereno on 11795 Vineland Ave.

T.H.I.S. DESIGN & DEVELOPMENT P.O.Box 1518, Los Gatos, CA 95031 Tel: 408.354.1833 Fax: 408.350.1823
City of Monte Sereno
18041 Saratoga-Los Gatos Rd
Monte Sereno, CA 95030
January 23rd, 2023
The Housing Element and SB-9
City Council and Site & Architecture Committee members.

I was unfortunately unable to attend the Housing Element hearing last week, but I have some comments and observations that I would like to share.

Last year the City made ADUs the focus of its Housing Element push for this 8-year period. Having decided on this strategy I am impressed with the focus and attention given by City officials and staff to make this happen – congratulations all round.

From my standpoint, I am trying to help and have one ADU almost ready for building approval and am just resolving some issues with SCCFD – who are turning out to be the main problem now for new construction in the City. I have several others in various stages of design and hope to present them for permitting soon.

That said, I am disappointed in this ‘single-minded’ focus for new construction in the City.

There is more to Monte Sereno than ADUs alone. This would appear to be born out by the critique from HCD of the Housing Element proposal, which expressed significant concern about its lack of diversity and has asked for a response in the final revision.

Early in the process, last year, a number of ‘sites’ were considered for potential re-zoning [allowing for the possibility in the future of more lots being created]. If I recall correctly, one of those areas was near the intersection of Vineland and Karl Avenue – amongst others. My impression is that the entire ‘rezoning’ process was shelved because ADUs presented a ‘path of least resistance’ for the Council. But that does not make those sites any less appropriate for potential ‘lot splits’ or other forms of development. What is absent is any realistic path to achieving this. Individuals would have to ask for re-zoning of their properties – which would amount to ‘spot re-zoning’ which is not allowed.

Which brings me to SB-9. The City has failed abysmally in this regard – in that we have made it easy to split suitable lots but impossible to build any new home(s) that would be appropriate in the City, thus thwarting the intent/spirit of the law. I do not regard the creation of lots in Monte Sereno in which only one or two 800 sq ft homes are permitted – no matter the size of the lot as beneficial. If it happens, it will destroy neighborhoods, if it does not, it just shows how Monte Sereno has stymied SB-9.

If you are looking for flexibility and diversity while still maintaining neighborhood character, Los Gatos’s approach [which required a great deal of work by both staff and the Council to reach a final ordinance] could be considered the best in the region. I would like to give you a quick summary of the end result.

Firstly, they – like Monte Sereno – have a set of zoning rules that takes into account the size of a lot as well as the Zoning District in which it is situated. Secondly, Los Gatos was interested keeping the character of neighborhoods – with each lot maintaining the characteristics of their single family zoning districts. But they also wanted to encourage more ADU sized homes - as Monte Sereno has chosen to do.

So any new lot created under SB-9 is permitted up to 2 homes, one an ADU sized home [max 1,200 sq ft] and the other based on the zoning district and lot size. The ADU sized unit is required to be included in any building permit application – thus helping the balance of diversity on the land.

I would seriously encourage Monte Sereno to re-consider its SB-9 ordinance to follow this solution proposed in Los Gatos. I know that this would not be a ‘forced re-zoning’ such as the City was considering in the Karl/Vineland area – and that is probably a good thing.

But what it would do is permit some of the owners of more suitable lots there and similar areas of Monte Sereno to ‘elect’ to do what SB-9 envisions – without ‘requiring’ them to do so. Wouldn’t it be nice to give Monte Sereno residents the opportunity to use SB-9 in a way that is beneficial to the City, the neighborhood and to themselves as well? Remember that for many residents, this is a way for them to remain in the community that they live in – rather than having to leave the area because of the cost of maintaining a home in the City.

When it passes legislation, the State has to look at the ‘big picture’ and with housing in short supply and costs and prices continuing to climb, the ‘ADU’ law from 2017 which was first considered ‘over-reach’ is now seen as beneficial in most communities.

Certainly the Housing Element approach in Monte Sereno has embraced it fully. If we look at SB-9 closely the state has come up with a good law, which we can continue to fight [as with our current ordinance] or we can look at how we can use it to the City’s advantage and move forward.

It has been my experience in other jurisdictions where I have helped residents develop their properties using SB-9 that this law is not being abused. The law is not for the benefit of developers – but rather for the benefit of Monte Sereno residents and potentially for the City of Monte Sereno itself if enacted appropriately. I would seriously encourage the Council to act on this matter now - it might be too late for this Housing Element, but inaction is not a solution, it is a mistake.

Thank you for your consideration.

Tony Jeans

STAFF REPORT
Meeting: Joint Special Meeting of the City Council and Site and Architectural Commission - Jan 31 2023
Agenda Heading: UNFINISHED BUSINESS
Staff Contact: Diana Perkins, City Planner
Department: City Planner
Title: Consider Adoption of the 6th Cycle Housing Element (CEQA: Exempt, Guidelines sections 15303, 15332, 15061)
Recommendation(s):

Staff recommends that the Site and Architectural Commission take the following action:
• Recommend that the City Council adopt a resolution to adopt the 6th Cycle Housing Element
Staff recommends that the City Council take the following action:
• Adopt a resolution to adopt the 6th Cycle Housing Element Background Information:

The Housing Element is part of the City’s General Plan and identifies policies and programs to meet the housing needs of the city’s current and future residents. State law (Government Code Sections 65580-65589.8) requires that every city and county in California adopt a Housing Element, approximately every five or eight years. In addition, the State Department of Housing and Community Development (HCD) reviews and certifies that each Housing Element meets all the requirements of the law. Monte Sereno’s current 5th Cycle Housing Element was adopted in 2015 and the new document must be adopted by January 31, 2023, but the state’s approval process can take several months.

The Housing Element Process has mandatory public participation requirements described below along with the stat us of requirement:

Item Date Completed
Prior to submittal of the first draft within a
planning period to HCD, the local
government must make the draft available for
public comment for 30 days and if any
comments were received, take at least 10
Draft 6th Cycle Housing Element published
for public review on August 9, 2022
Public comments reviewed by City Council
on September 6, 2022

Item Date Completed
business days to consider and incorporate
public comments.

Submit draft to HCD for review/approval. Draft 6th Cycle Housing Element submitted to HCD October 12, 2022.

For any subsequent revisions, the local
government must post the draft revision on
its website and email a link to all individuals
and organizations that have previously
requested notices relating to the local
government’s housing element at least
seven days before submitting any draft
revision to HCD.

Revisions were posted January 24 to the
public.

Revise and adopt (or adopt without changes,
with specific findings explaining the reasons
the City Council believes the draft element
substantially complies with Housing Element
law despite findings of the Department of
Housing and Community Development).

Special Joint Special Meeting with the City
Council and Site and Architectural
Commission to consider adopting the 6th
Cycle Housing Element is scheduled for
January 31, 2023.

Resubmit to HCD Promptly after adoption
Re-review by HCD, with additional findings
provided to the City 60 days after resubmittal
Housing Element Overview
Monte Sereno’s current 5th Cycle Housing Element covered 2015 to 2023 and was adopted on May 19, 2015. The updated 6th Cycle Housing Element will be for the 2023 to 2031 planning period. The Housing Element is required to include the following components:

1. Housing Needs Assessment: An analysis of housing needs of the City's population, including analysis of population, housing characteristics, projected housing needs by income group, housing needs of special needs populations (including elderly, persons with disabilities, etc.), existing housing stock conditions, and existing units in need of replacement or rehabilitation.

2. Constraints Analysis: An analysis of housing constraints that impact housing production, including city land use controls, local ordinances, permit requirements, fees, and the way that they may impact housing production.

3. Evaluation of Past Performance: Assess progress in implementing the policies and programs from the prior Housing Element.

4. Housing Sites Inventory: Identify housing sites available for development or redevelopment, ensuring that there is sufficient capacity to address the Regional Housing Needs Allocation for all income levels.

5. Policies and Programs: Establish policies and programs to be carried out during the 2023-2031 planning period to fulfill the identified housing needs.

6. Community Outreachand Engagement: Conduct a thorough program of community engagement, with a particular focus on outreach to traditionally underrepresented groups.

7. Affirmatively Further Fair Housing (AFFH): Analyze and address significant disparities in housing needs and access to opportunity by proposing housing goals, objectives, and policies that aid in replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws.

New Requirements for the 6th Cycle Housing Element Update Pursuant to recent State legislation, the following items are now required as part of the 6th Cycle Housing Element update process:
• Affirmatively Furthering Fair Housing (AFFH). Assembly Bill 686 (AB 686), passed in 2018, created new requirements for jurisdictions to affirmatively further fair housing. According to AB 686, affirmatively furthering fair housing means to take “meaningful actions, in addition to combating discrimination, which overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics” and is Federally mandated by the 1968 Fair Housing Act. The four main goals are to:
• Address significant disparities in housing needs and in access to opportunity, and • Replace segregated living patterns with truly integrated and balanced living patterns, and • Transform racially and ethnically concentrated areas of poverty into areas of opportunity, and • Foster and maintain compliance with civil rights and fair housing laws. • Public Comment on Draft Revisions. Assembly Bill (AB)215 (2021), requires local governments to make the first draft revision of their housing element update available for public comment for at least 30 days. Further, if any comments are received, a local government must take at least ten additional business days to consider and incorporate public comments into the draft revision before submitting to HCD. HCD must review the draft and report its written findings to the planning agency within 90 days of receiving the first draft submittal for each housing element revision or within 60 days of its receipt for a subsequent draft amendment or adoption.

Penalties for Non-Compliance
In the 6th cycle, jurisdictions face a number of new consequences for not having a certified Housing Element. Under legislation enacted in recent years, if a city does not comply with State housing law, HCD may refer the City to the Attorney General. Significant fines may be imposed if a City does not comply with a court order for one year. A court finding a Housing Element inadequate may limit local land use decision-making authority until the jurisdiction brings its Housing Element into compliance, or local governments may lose the right to deny certain projects.

Conversely, an HCD-certified housing element makes cities eligible for, or with higher priority for, numerous sources of funding, such as Local Housing Allocations, Affordable Housing and Sustainable Communities Grants, SB 1 Planning Grants, CalHOME Program Grants, Infill Infrastructure Grants, Pro-Housing Design funding, Local Housing Trust Funds, and Regional Transportation Funds (such as MTC’s OneBayArea Grants).

Analysis:
2023-2031 6th Cycle Housing Element
The 2023-2031 6th Cycle Housing Element consists of the following sections:

1. Introduction: Explains the purpose, process, and contents of the Housing Element.

2. Goals, Policies, and Programs: Details specific policies and programs the city will undertake over the 2023-2031 Planning Period to address the housing goals.

3. Overview of Housing Needs and Constraints: Reviews governmental constraints, including land use controls, fees, and processing requirements, as well as nongovernmental constraints, such as construction costs, availability of land and financing, physical environmental conditions that may impede the development, preservation, and maintenance of housing.

4. Vacant and Available Sites: Describes the city’s strategy to achieve the RHNA requirements and identifies land suitable to accommodate these additional housing units.

5. Energy Conversation: Identifies opportunities and programs for energy conservation.

The 6th Cycle Housing Element also includes seven technical appendices with detailed analysis and information that supports the findings and conclusions in the main document. The following is a summary of the major elements of the 6th Cycle Housing Element:

Affirmatively Furthering Fair Housing (AFFH)
One of the new requirements for the 6th cycle Housing Element Update is AFFH. Assembly Bill (AB) 686, passed in 2018, created new requirements for jurisdictions to affirmatively further fair housing. According to AB 686, affirmatively furthering fair housing means to take “meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics.” The four main goals are to:
• Address significant disparities in housing needs and in access to opportunity • Replace segregated living patterns with truly integrated and balanced living patterns • Transform racially and ethnically concentrated areas of poverty into areas of opportunity • Foster and maintain compliance with civil rights and fair housing laws AFFH is discussed in Chapter 1 and more thoroughly analyzed in Appendices A and G.

Housing Goals, Policies, and Programs
The Housing Goals in Chapter 2 are organized into the following categories:
• Goal H-1: Facilitate Housing Construction
• Goal H-2: Provide New Affordable and Equal Opportunity Housing • Goal H-3: Maintain and Improve the Existing Housing Stock • Goal H-4: Publicize Resources
The list of policies and programs in this chapter detail the actions that will be undertaken by the City during the planning period. These programs serve as a roadmap of how the city will create and preserve housing, especially for vulnerable populations. With these programs, the city has committed to reviewing development standards identified as constraints to housing construction and affordability, encourage and incentivize ADU construction, promote and enforce fair housing, analyze multi-family densities and potential sites, and encourage water and energy conservation.

Regional Housing Needs Allocation (RHNA) and Sites Inventory In January of 2022, HCD approved the Association of Bay Area Governments (ABAG) adopted Final RHNA Plan which establishes a total RHNA of 441,176 residential units for the San Francisco Bay Area’s 6th Cycle Housing Element Update. Monte Sereno’s RHNA for this upcoming 6th Cycle Housing Element is 193, an over 300% increase from last cycle’s RHNA of 61. Monte Sereno’s assigned RHNA for this housing cycle is distributed across four income categories as follows:

Very Low
Income
Low Income Moderate
Income
Above Moderate
Income
Total
53 30 31 79 193
Under state law, cities are not responsible for building such housing, but do need to identify adequate housing sites, as part of their sites inventory, and put in place the proper zoning and address development constraints, so that the private sector can build the housing.

To meet the RHNA, the city’s strategy is to create a robust outreach program to encourage the creation of ADUs within the city. Ad Hoc Committees to spearhead this goal were created by the City Council and the Site and Architectural Commission. The Committees developed a community-wide public outreach program to encourage creation of ADU units which includes the following:
• Informational postcards mailed to each resident/property owner; • Door-to-door neighborhood canvassing;
• Direct e-mails to interested parties, contractors, architects/designers; • Social media postings; and
• Information to be provided at the City-wide picnic on August 21, 2022

Additionally, the City Council approved a 50% reduction in building permit and plan review fees for building permit that create a new ADU, through new construction of the conversation of an existing structure (i.e. pool house, garage).

These efforts results in receiving 225 written intentions from property owners within Monte Sereno to construct an ADU on their property within the planning period. The 225 written intentions achieve the RHNA requirement of planning for 193 additional housing unit as well as a 15% buffer.

RHNA Buffer
New “no net loss” provisions of Government Code Section 65863 require that local jurisdictions ensure an adequate supply of land resources to be made available for housing development throughout the duration of the 2023-2031 planning period. This means if housing sites identified within the a city’s6th cycle housing element update are developed with nonresidential uses, lower residential densities, or residential uses that do not have the affordability levels anticipated by the Housing Element, the city’s Housing Element could be determined to be out of compliance. Accordingly, the city/town’s RHNA requirement of 193 is further buffered with and additional 15% to ensure compliance with ”no net loss” provisions.

The Housing Element includes a plan for a total of 225 new ADUs during the planning period.

Summary of Prior Meetings and Study Sessions
Over the last 12 months, Monte Sereno has conducted a comprehensive community engagement and outreach strategy to assist in informing the 6th cycle Housing Element Update Process. This strategy has included a series of community meetings and public meetings as summarized below:
• February 24, 2022 – City Council study session to provide an overview of the 6th cycle Housing Element process and schedule.
• April 19, 2022 – City Council meeting to discuss sites inventory. • April 23, 2022 – 6th cycle Housing Element Community Workshop meeting. • May 24, 2022 – Joint Meeting with the City Council and Site and Architectural Commission to discuss sites inventory.
• June 21, 2022 – City Council meeting to discuss ADU incentives/fee reductions and also to review draft programs.
• July 21, 2022 – Special City Council meeting where the Ad Hoc Housing Element committee provided an update on their plans to incentive ADU construction.

Additionally, the City Council approved a resolution at this meeting to offer a building permit fee reduction for ADU construction.
• August 21, 2022 – City-wide Picnic where information was available on the 6th cycle Housing Element update and feedback was received from the community. Additionally, West Valley Community Services facilitated a panel discussion where members of the community shared their experiences with housing insecurity, housing barriers, and living in an ADU.

• September 6, 2022 – City Council meeting to discuss remove of ADU development constraints of owner occupancy requirements and a potential amnesty program. Also, the Draft 6th cycle Housing Element was reviewed at this meeting. • September 20
• November 1, 2022 – City Council meeting where an ordinance was introduced to remove owner occupancy requirements for ADUs, create and amnesty program for unpermitted ADUs, and update the Municipal Code for the new state laws related to ADUs effective 2023.
• December 12, 2022 – Community meeting to provide information, various perspectives, and receive feedback on ADU construction in the West Valley region. • December 20, 2022 – City Council meeting to providing an update on the status of the 6th cycle Housing Element update.
• January 17, 2023 – City Council meeting to review comments received by HCD on the Draft 6th cycle Housing Element.
• January 31, 2023 – Joint City Council and Site and Architectural Commission meeting to consider adoption of the revised 6th cycle Housing Element.

Comments Received by HCD
The Draft 6th cycle Housing Element was submitted to the HCD for review on October 11, 2022 and comments were received on January 9, 2023. The HCD comment letter is included at Attachment 1 to this staff report. A detailed listing of each comment and how it has been addressed in the revised 6th cycle Housing Element is included in the Attachment 2 to this staff report. Following is summary of the comments and recommended responses.

The following section outlines changes to the Housing Element in response to HCD’s comments, including information on the City’s response. Please refer to Attachment 2 for a detailed listing of each comment, description of changes made to the 6th cycle Housing Element, and the pages of the document where the revised information is provided.

Section A – Review and Revision
HCD has asked for expanded analysis and summary of the outcomes of the programs from the previous, 5th Cycle Housing Element, particularly the lack of multi-family zoned properties within the city. And analysis of the cumulative effectiveness of past goals, policies, and related action in meeting the needs of special need populations is needed.

Appendix F has been revised to provide a more detailed description of outcomes for the programs from the previous Housing Element to more fully describe the results of each program and a cumulative analysis on the effectiveness of the overall Housing Element has been expanded. Additional analysis has been provided for Programs HE-2.1, HE-2.2, HE-2.3, HE-4.1, and HE-4.2. Additional cumulative analysis has noted that Monte Sereno greatly exceeded the RHNA requirements from the previous Housing Element in that permits were issued for 139 new houses, where 61 were required. Additionally, the City approved the first multi-family housing project in the city, which included modifying the multi-family zoning standards to allow a density almost twice what was previously allowed.

Section B – Housing Needs, Resources, and Constraints

The focus of HCD’s comments in this area are regarding the sites inventory, which includes the 225 ADU sites were property owner provided a written intention to construct an ADU, as well as the lack of a variety of housing densities including small lots and multi-family. HCD has requested that the City provide additional analysis with respect to the expected affordability of ADUs constructed, and staff have also considered and addressed comments received related to affordability.

The 6th cycle Housing Element has been revised to include additional information about historical ADU construction and use within the City to justify the assumptions made for ADUs in the upcoming planning period. The results of the annual ADU surveys have been included, these show that the vast majority of ADUs are used as dwelling units and are rented at lowincome levels.

Revisions have also been made to acknowledge that the zoning districts within the city are mostly single family; however, the 6th cycle Housing Element still justifies how the RHNA will be met through the ADU programs and incentives provided by the city. Further information has been added to better explain that the city does have a multi-family zoning district and the densities that are permitted in this district. Additionally, to respond to HCD’s comments, a discussion has been added about the SB 9 legislation and densities permitted under this new state law, which is the equivalent of a multi-family density.

Although the RHNA, both the number of new units required and the affordability levels, can be met through the construction of new ADUs, a program has been added to the 6th cycle Housing Element to study and evaluate potential multi-family sites that may be appropriate in the city as well as analyzing a variety of densities that could be allowed in future housing elements and other various state laws.

Section C – Housing Programs
HCD comments on the draft housing programs were focused on strengthening the commitment to outcomes, prioritizing certain programs that reduce constraints to housing affordability and housing for special needs populations, and identifying sites and appropriate zoning to facilitate multi-family development.

Appendix E has been updated so that the wording of programs noted in the comment (Program E – Facilitate Subdivision, Program G – Develop Incentives, Program H – Employee Housing, and Program I – Accessory Dwelling Units) has been strengthened as required in HCD’s comments. Adjustments have also been made to the timeframe for the various programs that support housing for special needs populations to have those programs addressed earlier this planning period.

Also, as noted above in Section B, a program has been added to analyze sites and densities that may be appropriate for multi-family zoning within the city. Further emphasis has been made the multi-family zoning that does exist in Monte Sereno and has resulted in housing structured at the highest density of units per acre that is provided in the city. Further, the SB 9 state regulations allow up to four dwelling units on every single family zoned lot, regardless of

lot size, which effectively permits by-right multi-family housing on nearly every lot in Monte Sereno.

Section D – Quantified Objectives
The comment from HCD require that numerical targets be added for the ADU amnesty program, Program Q (Housing Maintenance), Program R (Infrastructure Capital Improvements), Program S (Energy Conservation), Program T (Water Conservation) and Program U (Fair Housing).

The programs in Appendix E have been updated with anticipated or targeted outcomes for each of the programs noted in the HCD comments. This provides an estimation of the actual number of housing unit affected by each program.

Section E – Public Participation
HCD’s comment requested that additional public outreach be made to lower-income and special needs groups to understand and address their housing needs.

Since the Draft 6th cycle Housing Element was submitted to HCD, the city has been working with West Valley Community Services to reach out to the lower-income and special needs groups within the community. A community meeting was held in December with an ADU developer, a property owner who rents an ADU to a local teacher at less than market rate, and a resident of an ADU. The meeting was intended to receive information about the issues and benefits of ADUs from all involved parties. The ADU Program I program includes a variety of programs to incentive ADU construction.

Next Steps
Once adopted by the City Council, the revised 6th cycle Housing Element will be submitted to HCD for a 60-day review.

California Environmental Quality Act:

The Housing Element Update is exempt from further review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and the regulations promulgated thereunder (14 California Code of Regulations §§ 15000, et seq., the "CEQA Guidelines"), that in accordance with the California Environmental Quality Act (CEQA), the City reviewed the project's environmental impacts under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and the regulations promulgated thereunder (14 California Code of Regulations §§ 15000, et seq., the "CEQA Guidelines") and deemed the project to be exempt from further CEQA review pursuant to section 15332 (Class 32 In-Fill Development Projects) of the CEQA Guidelines, 15303 (New Construction or Conversion of Small Structures) and section 15061 (Common Sense Exemption). All development that is currently projected under the Housing Element is currently permitted under existing zoning regulations.

None of the exceptions to the use of a categorical exemption, as identified in CEQA Guidelines section 15300.2, applies to this project:

• The project is not located in a sensitive environment such that the project may impact an officially mapped and designated environmental resource of hazardous or critical concern;
• The cumulative effect of successive projects of the same type in the same place, over time, is not likely to be significant, in light of the permitted zoning; • The project does not have a significant environmental impact due to unusual circumstances, in that the project is not unusual in light of the scope of similar permitted projects within the zoning district;
• The project will not damage scenic resources (i.e. trees, historic buildings, or rock outcroppings) within an officially designated state scenic highway; • The project is not located on a listed hazardous waste site; or • The project will not cause substantial adverse change in the significance of a historical resource.

Public Noticing:

The City of Monte Sereno's council meeting agenda was posted on the bulletin board outside of Monte Sereno City Hall and the agenda with this staff report can be accessed on The City of Monte Sereno's website located at www.montesereno.org.

On January 24, 2023, the revised 6th cycle Housing Element was posted on the Housing Element website at www.AtHomeinMonteSereno.com.

Attachments:

1. HCD Comment Letter Dated January 9, 2023

2. HCD Comments with Description of Revisions Made to the 6th cycle Housing Element

3. Resolution - Housing Element Adoption 4853-9511-7899 v.1

4. Monte Sereno 2023-2031 Housing Element

5. Public Comments Received

STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
January 9, 2023
Steve Leonardis, City Manager
City of Monte Sereno
18041 Saratoga-Los Gatos Road
Monte Sereno, CA 95030
Dear Steve Leonardis:

RE: City of Monte Sereno’s 6th Cycle (2023-2031) Draft Housing Element Thank you for submitting the City of Monte Sereno’s (City) draft housing element received for review on October 12, 2022. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. In addition, HCD considered comments from East Bay for Everyone, South Bay YIMBY, Anne Paulson and YIMBY Law pursuant to Government Code section 65585, subdivision (c).

The draft element addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code).

The enclosed Appendix describes the revisions needed to comply with State Housing Element Law.

For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government fails to adopt a compliant housing element within 120 days of the statutory deadline (January 31, 2023), then any rezoning to make prior identified sites available or accommodate the regional housing needs allocation (RHNA) shall be completed no later than one year from the statutory deadline pursuant to Government Code sections 65583, subdivision (c) and 65583.2, subdivision (c). Otherwise, the local government’s housing element will no longer comply with State Housing Element Law, and HCD may revoke its finding of substantial compliance pursuant to Government Code section 65585, subdivision (i). Please be aware, if the City fails to adopt a compliant housing element within one year from the statutory deadline, the element cannot be found in substantial compliance until these rezones are completed.

Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly

Steve Leonardis, City Manager

available and considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD.

Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City meets housing element requirements for these and other funding sources.

For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at:
https://www.opr.ca.gov/planning/general-plan/guidelines.html.

We are committed to assisting the City in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Mashal Ayobi, of our staff, at [email protected].

Sincerely,
Paul McDougall
Senior Program Manager
Enclosure

City of Monte Sereno’s 6th Cycle (2023-2031) Draft Housing Element Page 1 January 9, 2023

APPENDIX

CITY OF MONTE SERENO
The following changes are necessary to bring the City’s housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code.

Housing element technical assistance information is available on HCD’s website at https://www.hcd.ca.gov/planning-and-community-development/hcd-memos. Among other resources, the housing element section contains HCD’s latest technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks), available at https://www.hcd.ca.gov/planning-and-community-development/housing-elements/buildingblocks and includes the Government Code addressing State Housing Element Law and other resources.

A. Review and Revision
Review the previous element to evaluate the appropriateness, effectiveness, and progress in implementation, and reflect the results of this review in the revised element. (Gov. Code, § 65588 (a) and (b).)
The review requirement is one of the most important features of the element update. The review of past programs should describe progress in implementation of previous actions, including results compared to objectives and evaluate the effectiveness of actions to make appropriate adjustments in the current planning period. In several cases, the element appears to either omit or not describe and evaluate actions from the prior planning period.

Most notably, the review and revise does not evaluate actions related to accommodating the regional housing need allocation (RHNA) (accessory dwelling units (ADU)), providing realistic opportunities for multifamily development and outreach to affordable housing developers, including nonprofits. These programs were geared toward promoting housing variety and affordability, housing mobility and inclusion into Monte Sereno. Yet, the current element does not evaluate past commitments or consider appropriate actions. For example, Program H-2.5 committed to establish multifamily zoning and if not successful, provide alternative multifamily opportunities and amend the element to correct inconsistencies. The Program also committed to make specific outreach to developers of housing affordable to lower income and special needs households and apply for funding.

The current element includes some discussion that the multifamily zoning was repealed and instead a project was developed on a multifamily zoned site. The project occurred on a site that was committed to be zoned multifamily in the prior planning period for the same reasons (See Program HE 3.10 from the 4th cycle) – to promote a variety of housing types.

Instead, the site was zoned at precariously marginal densities and that development ended up being single-family – not multifamily. The element omits the depth and importance of this commitment and did not discuss or evaluate the effectiveness of multifamily zoning, lack of alternative measures taken and outreach efforts. Other examples of programs geared toward promoting housing variety, mobility and affordability from the prior review include:

City of Monte Sereno’s 6th Cycle (2023-2031) Draft Housing Element Page 2 January 9, 2023
• Program HE-2.1 (Evaluate ADU): The element does not discuss changes to development standards, results of the survey or achieving the program objectives. • Program HE-2.2 (Shared Housing): The element does not address contacting agencies or publicizing the program.
• Program HE-2.3 (ADU Monitoring): This program had a specific trigger to revise multifamily zoning and densities if ADUs for all income were not constructed in specified time intervals. The current element omits any discussion of these commitments.
• Program HE-4.1 (Special Needs): The element does not discuss the attempts, success or effectiveness of outreach with non-profit developers. • Program HE-4.2 (Senior Housing): The Program’s focus was to develop innovative housing. Instead, the element discusses the City’s attempts at partnerships with the County Department of Aging.

To address this requirement, the element must fully describe past commitments, progress in implementation, evaluate effectiveness and then discuss appropriate adjustments in the current planning period. Given the apparent lack of effectiveness and success in developing multifamily choices and affordability for at least two planning periods, this analysis should particularly focus on zoning for a variety of housing types, including multifamily and discuss significant actions to promote housing choice, affordability and mobility to facilitate inclusion beyond the RHNA and beyond complying with related state laws (e.g., ADU law and SB 9).

In addition, the element must provide an evaluation of the cumulative effectiveness of past goals, policies, and related actions in meeting the housing needs of special needs populations (e.g., elderly, persons with disabilities, large households, female-headed households, farmworkers, and persons experiencing homelessness) and revise programs as appropriate.

B. Housing Needs, Resources, and Constraints

1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).) Income and Racial Concentration of Affluence (RCAA): The element briefly mentions incomes in the City compared to the region and notes it is safe to speculate the City has neighborhoods that are RCAAs; however, the entire City is a RCAA and the element should incorporate this information. Please see HCD’s Affirmatively Furthering Fair Housing (AFFH) Data Viewer at https://affh-data-resources-cahcd.hub.arcgis.com/. The element should include specific analysis of income and RCAA at a regional level (City compared to the broader region). The analysis should at least address trends, conditions, coincidence with other fair housing factors (e.g., race, highest resource, overpayment), effectiveness or absence of past strategies (e.g., lack of publicly assisted housing and lack of multifamily zoning), local data and knowledge and other relevant factors. The element must add or modify meaningful programs based on the outcomes of this analysis, including actions to improve housing mobility within and beyond City boundaries.

City of Monte Sereno’s 6th Cycle (2023-2031) Draft Housing Element Page 3 January 9, 2023
Local Data and Knowledge and Other Relevant Factors: The element includes state and federal data but must utilize other sources of local data and knowledge to supplement the data and mapping including planning documents such as locally adopted ordinances, other elements of the general plan, infrastructure assessments, and mobility assessments to fully describe the impacts on fair housing patterns and trends.

In addition, the element must discuss other relevant factors such as historical land use (zoning, initiatives, growth control) that impacted socio-economic patterns.

Contributing Factors to Fair Housing Issues: Upon a complete AFFH analysis, the element must assess and prioritize contributing factors to fair housing issues and add or modify programs as appropriate.

2. Include an analysis of population and employment trends and documentation of projections and a quantification of the locality's existing and projected needs for all income levels, including extremely low-income households. (Gov. Code, § 65583, subd. (a)(1).)
Include an analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (Gov. Code, § 65583, subd. (a)(2).) Analyze any special housing needs such as elderly; persons with disabilities, including a developmental disability; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. (Gov. Code, § 65583, subd. (a)(7).)
Extremely Low-Income (ELI) Households: While the element quantifies existing ELI households, it must also identity projected ELI housing needs and analyze their housing needs. The projected housing need for ELI households can be calculated by using available census data to determine the number of very low-income households that qualify as ELI households or presume that 50 percent of the RHNA for very low-income households qualify as ELI households. The analysis of existing ELI housing needs should address tenure, disproportionate impacts (overcrowding, overpayment, housing situations), comparisons to other income groups, effectiveness of past strategies and magnitude of needs (including projected).

Housing Conditions: While the element includes information on the age of structures and lack of kitchen and plumbing facilitate, it must still estimate the number of units in need of rehabilitation and replacement. In addition, the element could consider discussion of any patterns from code enforcement as areas of more frequent enforcement to compliment the assessment of fair housing (See AFFH above, including local knowledge).

Housing Costs: The element currently utilizes American Community Survey (ACS) data to evaluate rental costs but should consider additional data sources to better reflect market conditions (e.g., Zillow, Apartments.com). If minimal rental data is available, the element could consider market conditions in comparable nearby communities.

City of Monte Sereno’s 6th Cycle (2023-2031) Draft Housing Element Page 4 January 9, 2023
Special Needs: While the element reports data on special needs groups, it must still include analysis including trends, characteristics, magnitude of need, resources, and potential strategies to mitigate identified housing issues.

3. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).)
Adequate Sites and Accessory Dwelling Units (ADU): The element identifies a RHNA of 193 units, including a lower-income RHNA of 83 units and moderate-income RHNA of 31 units and proposes to accommodate essentially the entire RHNA for all income groups with ADUs. While the element may demonstrate adequate sites entirely with ADUs, given the reliance on one strategy, it must include robust and commensurate analysis, as follows:
• Calculation of Past Trends: The element excludes 2020 permit numbers and then average permits to approximately 16 ADUs per year. However, even this calculation is incorrect and appears to exclude 2018 and 2020 numbers. Given the reliance on ADUs, the element should utilize averages based on all years since 2018.
• Affordability: The element uses the Association of Bay Area analysis of ADU rents. However, these assumptions should consider public comments on this review and market rents from comparable and nearby communities. • Other Relevant Factors: The analysis, policies, and programs and ADU assumptions for the planning period should account for the availability of ADUs for rent. This is particularly important given the reliance on ADUs and lack of housing choices, affordability and mobility into the City. • Owner Intentions and Past Surveys: The element concludes the City’s robust outreach and incentives have resulted in 225 residential owners expressing their intentions in developing ADUs in the planning period. However, the element must include substantial evidence to support this conclusion, especially considering even the most favorable recent trends would result in a significantly lesser number of ADUs in the planning period. For example, the element should discuss the survey tool, how the survey was administered, list the actual responses, and evaluate the likelihood of owners converting intentions into permitted ADUs in the planning period, including availability for rent. This analysis could incorporate past surveys and analyses as a result of programs in the prior planning period.

If the above analyses necessitate identifying sites to accommodate the RHNA, including by income group, the identification of sites and analysis must meet all requirements pursuant to Government Code section 65583.2, including but not limited to parcel listing, map of identified sites, identified sites and AFFH, environmental and other constraints, infrastructure, size of sites, nonvacant sites, calculation of realistic residential capacity and appropriate zoning to accommodate housing for lower-income households. For more information, please see the Building Blocks at https://www.hcd.ca.gov/planning-and-community-development/housingelements/building-blocks.

City of Monte Sereno’s 6th Cycle (2023-2031) Draft Housing Element Page 5 January 9, 2023
Environmental Constraints: While the element includes some general discussion of environmental constraints, it should also relate that discussion to the development of ADUs, including any other known constraints that preclude development in the planning period.

Electronic Sites Inventory: For your information, pursuant to Government Code section 65583.3, the City must submit an electronic sites inventory with its adopted housing element. The City must utilize standards, forms, and definitions adopted by HCD.

Please see HCD’s housing element webpage at https://www.hcd.ca.gov/planning-andcommunity-development/housing-elements for a copy of the form and instructions. The City can reach out to HCD at [email protected] for technical assistance.

Zoning for a Variety of Housing Types:
• Multifamily: While the element mentions that the City has established a multifamily zoning district, it must still discuss how multifamily zoning encourages and facilitates a variety of housing types including density, development standards and permit procedures. In addition, the element must identify significant and realistic opportunities for multifamily development in the planning period, including but not limited to identification of sites, any known constraints or impediments, parcel size, appropriateness of densities and methodology for calculating residential capacity. Based on the outcomes of this analysis, the element must include programs to identify sites and appropriate zoning (e.g., 20 units per acre) and development standards to encourage and facilitate multifamily development.
• Emergency Shelters: While the element states that emergency shelters are allowed by-right, it should clarify that by-right is without discretionary action. In addition, the element should add a discussion of acreage, parcel sizes. reuse and redevelopment opportunities and proximity to transportation and services as well as list and analyze development standards, including parking. If constraints are identified, the element must add or revise programs. • By-Right Permanent Supportive Housing: By-right permanent supportive housing shall be a use by-right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses pursuant to Government Code section 65651. The element must demonstrate compliance with this requirement and include programs as appropriate. • Single Room Occupancy (SRO) Units: While the element includes some information on SROs, it must still discuss zoning, development standards and permitting procedures. This is particularly important given the lack of implementation in the prior planning period and programs should be added or modified to establish appropriate zoning and capacity early in the planning period.
• Accessory Dwelling Units: The element must demonstrate that the City’s ADU ordinance is incompliance with state law and add or modify programs to comply with State ADU Law.

City of Monte Sereno’s 6th Cycle (2023-2031) Draft Housing Element Page 6 January 9, 2023
• Manufactured Housing: Manufactured homes that are built on a permanent foundation must be allowed in the same manner and in the same zones as conventional or stick-built structures. Specifically, manufactured homes on a permanent structure should only be subject to the same development standards as a conventional single-family residential dwelling. The element must demonstrate consistency with this requirement or add or modify programs as appropriate.

4. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures... (Gov. Code, § 65583, subd. (a)(5).)
Land Use Controls: While the element generally describes land-use controls, it must evaluate all development standards and other land use controls for impacts on housing supply (number of units), cost, feasibility, timing and ability to achieve maximum densities. For example, the analysis should address how density is defined and any and all standards that regulate intensity, especially for multifamily housing and parking.

In addition, much of the City consists of large lots and there are no multifamily units in the City. While the element lists four residential zoning districts, none of the districts allow more than eight units per acre and, while the City does have a single-family zone allowing five units per acre, most single family zoning is no more than two units per acre. Essentially, there is a lack of a variety of minimum lot sizes and allowable densities. The lack of a variety of lot sizes and densities can impact housing supply, choices and affordability. As a result, the element should include analysis of the impacts of an apparent predominant large lot land use pattern and include programs as appropriate.

Finally, the element should include a discussion of how the City complies with Government Code sections 65852.21 and 66411.7 (SB 9) and add or modify programs (Program E) as appropriate to comply with state law.

Fees and Exaction: The element lists total development fees for single-family and multifamily development (Table C-4) but should also list the various fees that comprise the total fees per unit. For example, the element should list and evaluate the various impact fees per unit for impacts on housing cost.

Processing and Permit Procedures: While the element generally describes processing and permitting procedures, it must still list and evaluate site development permit and design review, including typical approval findings, typical number of hearings, and timing and then evaluate impacts on housing supply, cost, feasibility and approval certainty.

City of Monte Sereno’s 6th Cycle (2023-2031) Draft Housing Element Page 7 January 9, 2023
Streamlining Provisions: The element should clarify whether the City has procedures consistent with streamlining procedures pursuant to Government Code section 65913.4 (SB 35) and include programs as appropriate.

Constraints on Housing for Persons with Disabilities: The element must include an analysis of potential constraints on housing for persons with disabilities, as follows:
• Reasonable Accommodation: The element indicates the City has a reasonable accommodation procedure but must still describe these procedures including approval findings and evaluate potential constraints on housing for persons with disabilities.
• Family Definition: The element concludes the City has a definition of family that does not limit the number of persons. However, the element should describe the actual definition of family and evaluate its potential impacts, including impacts on unrelated persons.
• Group Homes: The element broadly mentions residential care homes are allowed but it should specifically identify which zones allow the uses, how the uses are allowed (e.g., permit type), any other relevant factors and evaluate potential constraints. The analysis should be conducted for both group homes for six or fewer persons and seven or more persons.

Local Ordinances: The element must specifically analyze locally adopted ordinances such as inclusionary ordinances or short-term rental ordinances that directly impact the cost and supply of residential development.

Zoning and Fees Transparency: The element must clarify its compliance with new transparency requirements for posting all zoning and development standards for each parcel on the jurisdiction’s website pursuant to Government Code section 65940.1(a)(1).

C. Housing Programs

1. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing Element... (Gov. Code, § 65583, subd. (c).)
To have a beneficial impact in the planning period and achieve the goals and objectives of the housing element, programs must have discrete timing early in the planning period (e.g., at least annually or by 2025) and specific commitment to housing outcomes (e.g., refrain from language such as “explore”, “develop”, “consider”). Examples of programs to be revised include:
• Program E (Facilitate Subdivision): This program must be revised to add specific commitments to a housing outcome, beyond reviewing regulations.

City of Monte Sereno’s 6th Cycle (2023-2031) Draft Housing Element Page 8 January 9, 2023
• Program G (Develop Incentives): Especially given the lack of progress in the previous planning periods, this program must specifically, proactively, and annually reach out to affordable developers and apply for funding in addition to “at the request of the developer”.
• Program H (Employee Housing): Given the lack of implementation in the prior planning period, the program should commit to amend zoning earlier in the planning period (e.g., by 2024).
• Program I (Accessory Dwelling Units): The program should go beyond “consider removing” restrictive requirements and specifically commit (remove consider) to revise the ADU ordinance in compliance with ADU law. In addition, this program should include annual monitoring of production and affordability and alternative actions (e.g., additional incentives, rezoning) if assumptions not met by a specified date (e.g., within six months).

2. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Government Code section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. (Gov. Code, § 65583, subd. (c)(1).)
As noted in Finding B3, the element does not include a complete site analysis; therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types. In addition, the element should be revised as follows:
• Multifamily Zoning: As noted in Finding B3, the element must include a program to identify sites and appropriate zoning (e.g., 20 units per acre) and development standards to encourage and facilitate multifamily development. • Program P (Low Barrier Navigation Centers): The Program should specifically commit to permit low barrier navigation centers without discretionary action and in compliance with Government Code section 65661.

3. The Housing Element shall contain programs which assist in the development of adequate housing to meet the needs of extremely low-, very low-, low- and moderateincome households. (Gov. Code, § 65583, subd. (c)(2).) The element must include a program to assist in the development of adequate housing to meet the needs of lower and moderate-income households, including ELI and Special Needs households. These actions should be significant and specific, given the lack of implementation and results in the prior planning periods. Examples of actions include proactive an annual outreach to developers of affordable housing, assisting with

City of Monte Sereno’s 6th Cycle (2023-2031) Draft Housing Element Page 9 January 9, 2023
funding, supporting funding applications, land acquisition, priority processing, fee waivers, concessions and incentives beyond State Density Bonus Law, assistance with infrastructure and site improvements and monitoring and adjustment at least annually.

4. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).) As noted in Findings B4 and B5, the element requires a complete analysis of potential governmental and nongovernmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints.

In addition, as noted in Finding B4, the City lacks a variety of minimum lot sizes and densities and the element should add programs to create a variety of lot sizes, increased densities, and modified development standards to facilitate maximum densities.

5. Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics... (Gov. Code, § 65583, subd. (c)(5).)
As noted in Finding B1, the element requires a complete AFFH analysis. Depending upon the results of that analysis, the City may need to revise or add or modify goals and actions. Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific commitment, milestones, geographic targeting and metrics or numerical targets and, as appropriate, address housing mobility enhancement, new housing choices and affordability in higher opportunity or higher income areas, place-based strategies for community revitalization and displacement protection. For example, the element must add significant and meaningful housing mobility actions to overcome the existing patterns in the City related to the broader region.

D. Quantified Objectives
Establish the number of housing units, by income level, that can be constructed, rehabilitated, and conserved over a five-year time frame. (Gov. Code, § 65583, subd. (b)(1 & 2).)
While the element includes quantified objectives for new construction by income level, it currently targets no objectives for rehabilitation and conservation and should be revised accordingly. For example, quantified objectives could incorporate numerical targets for

City of Monte Sereno’s 6th Cycle (2023-2031) Draft Housing Element Page 10 January 9, 2023
ADU amnesty or anticipated outcomes from Programs Q (Housing Maintenance), R (Infrastructure Capital Improvements), S (Energy Conservation), T (Water Conservation) and U (Fair Housing).

E. Public Participation
Local governments shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the Housing Element, and the element shall describe this effort. (Gov. Code, § 65583, subd.(c)(9).) The element should employ additional methods of public outreach and participation moving forward to include all segments of the community in the public participation process, including engaging organizations which represent lower-income and special needs groups. In addition, the element should describe comments and how they were incorporated into the housing element.

Number Section Comment Response/Revision Made to Housing Element Page/Location
of Revision in
Housing
Element
A Review and
Revision -
Previous
Housing
Element Goals
and Policies
The review requirement is one of the most important features of the element update. The review of past programs should describe progress in implementation of previous actions, including results compared to objectives and evaluate the effectiveness of actions to make appropriate adjustments in the current planning period. In several cases, the element appears to either omit or not describe and evaluate actions from the prior planning period. Most notably, the review and revise does not evaluate actions related to accommodating the regional housing need allocation (RHNA) (accessory dwelling units (ADU)), providing realistic opportunities for multifamily development and outreach to affordable housing developers, including nonprofits. These programs were geared toward promoting housing variety and affordability, housing mobility and inclusion into Monte Sereno. Yet, the current element does not evaluate past commitments or consider appropriate actions. For example, Program H-2.5 committed to establish multifamily zoning and if not successful, provide alternative multifamily opportunities and amend the element to correct inconsistencies. The Program also committed to make specific outreach to developers of housing affordable to lower income and special needs households and apply for funding. The current element includes some discussion that the multifamily zoning was repealed and instead a project was developed on a multifamily zoned site. The project occurred on a site that was committed to be zoned multifamily in the prior planning period for the same reasons (See Program HE 3.10 from the 4th cycle) – to promote a variety of housing types. Instead, the site was zoned at precariously marginal densities and that development ended up being single-family – not multifamily. The element omits the depth and importance of this commitment and did not discuss or evaluate the effectiveness of multifamily zoning, lack of alternative measures taken and outreach efforts. Other examples of programs geared toward promoting housing variety, mobility and affordability from the prior review include:

A review of the programs from the 5th Cycle Housing
Element was included in Appendix E of the draft
Housing Element. Additional information has been
added to the review of prior programs as noted in the
comment. And a cumulative analysis has been added.

Pages E-3 through E15
• Program HE-2.1 (Evaluate ADU): The element does not discuss changes to development standards, results of the survey or achieving the program objectives.
• Program HE-2.2 (Shared Housing): The element does not address contacting agencies or publicizing the program. • Program HE-2.3 (ADU Monitoring): This program had a specific trigger to revise multifamily zoning and densities if ADUs for all income were not constructed in specified time intervals. The current element omits any discussion of these commitments.
• Program HE-4.1 (Special Needs): The element does not discuss the attempts, success or effectiveness of outreach with non-profit developers.
• Program HE-4.2 (Senior Housing): The Program’s focus was to develop innovative housing. Instead, the element discusses the City’s attempts at partnerships with the County Department of Aging.

Department of Housing and Community Development
Comments on Draft Housing Element - January 24, 2023

Number Section Comment Response/Revision Made to Housing Element Page/Location
of Revision in
Housing
Element
In addition, the element must provide an evaluation of the cumulative effectiveness of past goals, policies, and related actions in meeting the housing needs of special needs populations (e.g., elderly, persons with disabilities, large households, female-headed households, farmworkers, and persons experiencing homelessness) and revise programs as appropriate.

B.1 Housing
Needs,
Resources, and
Constraints
Income and Racial Concentration of Affluence (RCAA): The element briefly mentions incomes in the City compared to the region and notes it is safe to speculate the City has neighborhoods that are RCAAs; however, the entire City is a RCAA and the element should incorporate this information. Please see HCD’s Affirmatively Furthering Fair Housing (AFFH) Data Viewer at https://affh-data-resources-cahcd.hub.arcgis.com/. The element should include specific analysis of income and RCAA at a regional level (City compared to the broader region). The analysis should at least address trends, conditions, coincidence with other fair housing factors (e.g., race, highest resource, overpayment), effectiveness or absence of past strategies (e.g., lack of publicly assisted housing and lack of multifamily zoning), local data and knowledge and other relevant factors. The element must add or modify meaningful programs based on the outcomes of this analysis, including actions to improve housing mobility within and beyond City boundaries.

Additional information has been added stating the
entire city is a RCAA and the additional data requested has been included.

The ADU strategy allows and encourages ADU
construction throughout the city which avoids
concentrating affordable housing in certain areas of the city. A map has been added to show the locations of
the 225 ADU intention letter received to show the ADU
construction will occur throughout the city.

Information has been provided to note that as a result
of SB-9, up to four dwelling units are allowed on each
single family lot, regardless of lot size, which increases the density of housing in the City and provide multifamily housing.

Pages A-17 through
A-21, 4-7, and C-11
through C-12
Local Data and Knowledge and Other Relevant Factors: The element includes state and federal data but must utilize other sources of local data and knowledge to supplement the data and mapping including planning documents such as locally adopted ordinances, other elements of the general plan, infrastructure assessments, and mobility assessments to fully describe the impacts on fair housing patterns and trends. In addition, the element must discuss other relevant factors such as historical land use (zoning, initiatives, growth control) that impacted socio-economic patterns.

Additional information has been added about the city's
land use and zoning history. And a discussion about
how the historical trends that created the RCAA are
being reversed.

Page A-12
Contributing Factors to Fair Housing Issues: Upon a complete AFFH analysis, the element must assess and prioritize contributing factors to fair housing issues and add or modify programs as appropriate.

Program J has been expanded to strengthen the city's
commitment to supporting agencies that provide
housing support services for special needs populations
in the West Valley region. The City's commitments may
include informational services and/or annual funding
commitments.

Number Section Comment Response/Revision Made to Housing Element Page/Location
of Revision in
Housing
Element
B.2 Housing
Needs,
Resources, and
Constraints
Extremely Low-Income (ELI) Households: While the element quantifies existing ELI households, it must also identity projected ELI housing needs and analyze their housing needs. The projected housing need for ELI households can be calculated by using available census data to determine the number of very low-income households that qualify as ELI households or presume that 50 percent of the RHNA for very low-income households qualify as ELI households. The analysis of existing ELI housing needs should address tenure, disproportionate impacts (overcrowding, overpayment, housing situations), comparisons to other income groups, effectiveness of past strategies and magnitude of needs (including projected).

Additional information has been added to address the
assumed ELI population as noted. Information also
included to explain how existing policies and programs, including the ADU program, address the ELI population.

Pages 1-2 thorugh 1-
3, B-9 through B10, B-50 through B51
Housing Conditions: While the element includes information on the age of structures and lack of kitchen and plumbing facilitate, it must still estimate the number of units in need of rehabilitation and replacement. In addition, the element could consider discussion of any patterns from code enforcement as areas of more frequent enforcement to compliment the assessment of fair housing (See AFFH above, including local knowledge).

The city does not have data showing any existing
housing units are sub-standard or in need or
rehabilitation. No such housing conditions have been
identified by staff or received as a code enforcement
complaint. Additional information has been added to
explain that code enforcement complaints received
have not been related to sub-standard housing.

Pages A-29 and 3-6
Housing Costs: The element currently utilizes American Community Survey (ACS) data to evaluate rental costs but should consider additional data sources to better reflect market conditions (e.g., Zillow, Apartments.com). If minimal rental data is available, the element could consider market conditions in comparable nearby communities.

Additional rental data has been included as noted in the comment. However, the data from the City's annual
ADU survey will be most accurate for Monte Sereno.

Pages 4-8 and B-25
through B-26
Special Needs: While the element reports data on special needs groups, it must still include analysis including trends, characteristics, magnitude of need, resources, and potential strategies to mitigate identified housing issues.

Additional discussion has been added to describe in
more detail how special needs populations (including
the new low and moderate income ADUs) will be
assisted with these programs.

Page B-53

Number Section Comment Response/Revision Made to Housing Element Page/Location
of Revision in
Housing
Element
B.3 Housing
Needs,
Resources, and
Constraints
Adequate Sites and Accessory Dwelling Units (ADU): The element identifies a RHNA of 193 units, including a lower-income RHNA of 83 units and moderate-income RHNA of 31 units and proposes to accommodate essentially the entire RHNA for all income groups with ADUs. While the element may demonstrate adequate sites entirely with ADUs, given the reliance on one strategy, it must include robust and commensurate analysis, as follows:
• Calculation of Past Trends: The element excludes 2020 permit numbers and then average permits to approximately 16 ADUs per year. However, even this calculation is incorrect and appears to exclude 2018 and 2020 numbers. Given the reliance on ADUs, the element should utilize averages based on all years since 2018. • Affordability: The element uses the Association of Bay Area analysis of ADU rents. However, these assumptions should consider public comments on this review and market rents from comparable and nearby communities. • Other Relevant Factors: The analysis, policies, and programs and ADU assumptions for the planning period should account for the availability of ADUs for rent. This is particularly important given the reliance on ADUs and lack of housing choices, affordability and mobility into the City.
• Owner Intentions and Past Surveys: The element concludes the City’s robust outreach and incentives have resulted in 225 residential owners expressing their intentions in developing ADUs in the planning period. However, the element must include substantial evidence to support this conclusion, especially considering even the most favorable recent trends would result in a significantly lesser number of ADUs in the planning period. For example, the element should discuss the survey tool, how the survey was administered, list the actual responses, and evaluate the likelihood of owners converting intentions into permitted ADUs in the planning period, including availability for rent. This analysis could incorporate past

Calculation of past trends - Calculations based on
historical ADU construction have been adjusted as
noted.

Affordability - Additional information from Zillow on
market rents has been added to analysis. As well as a
response to the public comments that were received.

Other Relevant Factors - Information has been provided
on market rates and availability of ADUs for rent.

Owner Intentions and Past Surveys - Information has
been added from the past annual ADU survey's
conducted that show how the ADUs constructed are
used and the rental income category for rented units.

This data shows that a vast majority of ADUs are used
as dwelling units and rented at a low income level.

Pages 4-6 through 4-
8, B-25 through B26
Environmental Constraints: While the element includes some general discussion of environmental constraints, it should also relate that discussion to the development of ADUs, including any other known constraints that preclude development in the planning period.

Information has been added noting that the Council
adopted Ordinance NS-232 on December 20, 2022
which removes the owner-occupancy requirements for
past and future ADUs as well as provides a strong
amnesty program that exceeds the minimum
timeframes required by state law. These were two
issues that were identified as constraints to ADU
construction.

Program I includes on-going monitoring of the ADU
requirements, including feedback and questions
received by property owners, to determine where
additional constraints can be removed.

2-12 and C-8

Number Section Comment Response/Revision Made to Housing Element Page/Location
of Revision in
Housing
Element
Electronic Sites Inventory: For your information, pursuant to Government Code section 65583.3, the City must submit an electronic sites inventory with its adopted housing element. The City must utilize standards, forms, and definitions adopted by HCD. Please see HCD’s housing element webpage at https://www.hcd.ca.gov/planning-and-communitydevelopment/housing-elements for a copy of the form and instructions. The City can reach out to HCD at [email protected] for technical assistance.

Although the Government Code Section 65583.1(a)
does not require a sites inventory when alternative
methods are used, such as ADUs, an electronic sites
inventory was provided with the Draft Housing Element
submittal. This will be included again when the revised Housing Element is submitted to HCD.

See Excel File
Multifamily: While the element mentions that the City has established a multifamily zoning district, it must still discuss how multifamily zoning encourages and facilitates a variety of housing types including density, development standards and permit procedures. In addition, the element must identify significant and realistic opportunities for multifamily development in the planning period, including but not limited to identification of sites, any known constraints or impediments, parcel size, appropriateness of densities and methodology for calculating residential capacity. Based on the outcomes of this analysis, the element must include programs to identify sites and appropriate zoning (e.g., 20 units per acre) and development standards to encourage and facilitate multifamily development.

The city does have a multi-family zoning district that
allows up to three units on a lot with a minimum lot
size of 14,520 square feet. Additionally, the SB-9 state regulations allow up to four dwelling units on every
single family zoned lot, regardless of lot size.

A program has been added to evaluate additional multifamily zoned sites, including the application of SB-10, throughout the city as well as any potential
annexations.

Pages 2-16, C-11
through C-12
Emergency Shelters: While the element states that emergency shelters are allowed by-right, it should clarify that by-right is without discretionary action. In addition, the element should add a discussion of acreage, parcel sizes. reuse and redevelopment opportunities and proximity to transportation and services as well as list and analyze development standards, including parking. If constraints are identified, the element must add or revise programs.

The language in the Housing Element has been updated
to specify that emergency shelters are allowed by-right in the "P" zoning district and that discretionary action is not required.

The Housing Element has also been revised to analyze
the facilities noted in the comment and a program
added to consider coordination with other West Valley
cities (Saratoga, Los Gatos, Campbell, and Cupertino) to address homelessness in the region.

Number Section Comment Response/Revision Made to Housing Element Page/Location
of Revision in
Housing
Element
By-Right Permanent Supportive Housing: By-right permanent supportive housing shall be a use by-right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses pursuant to Government Code section 65651. The element must demonstrate compliance with this requirement and include programs as appropriate.

The City allows supporting housing by-right within the R1-44, R-1-20, R-1-8, and RM zoning districts. A program has been added to amend the Municipal Code to allow
supportive housing in the "P" zoning district.

Single Room Occupancy (SRO) Units: While the element includes some information on SROs, it must still discuss zoning, development standards and permitting procedures. This is particularly important given the lack of implementation in the prior planning period and programs should be added or modified to establish appropriate zoning and capacity early in the planning period.

The City allows Single Room Occupancy (SROs)
(Transitional Housing and Supportive Housing) by-right
within the R-1-44, R-1-20, R-1-8, and Rm zoning
districts. A program has been added to amend the
Municipal Code to allow supportive housing in the "P"
zoning district.

Accessory Dwelling Units: The element must demonstrate that the City’s ADU ordinance is incompliance with state law and add or modify programs to comply with State ADU Law.

The City's ADU ordinance is in compliance with the
state law, most recently with the adoption of ordinance NS-232 on December 20, 2022, which updates the
ordinance to comply with state laws effective on
January 1, 2023.

Manufactured Housing: Manufactured homes that are built on a permanent foundation must be allowed in the same manner and in the same zones as conventional or stick-built structures. Specifically, manufactured homes on a permanent structure should only be subject to the same development standards as a conventional single-family residential dwelling.

The element must demonstrate consistency with this requirement or add or modify programs as appropriate.

The Municipal Code does not prohibit manufactured
homes, and a new manufactured ADU was recently
permitted. The city complies with Government Code
Section 65852.3 in allowing manufactured homes in the
same manner as conventional structures. When the city
updates the Objective Design Standards, a specific
standard will be added to further confirm that
manufactured homes will be reviewed as required by
this Government Code Section.

Page C-11

Number Section Comment Response/Revision Made to Housing Element Page/Location
of Revision in
Housing
Element
B.4 Housing
Needs,
Resources, and
Constraints
Land Use Controls: While the element generally describes land-use controls, it must evaluate all development standards and other land use controls for impacts on housing supply (number of units), cost, feasibility, timing and ability to achieve maximum densities. For example, the analysis should address how density is defined and any and all standards that regulate intensity, especially for multifamily housing and parking.

In addition, much of the City consists of large lots and there are no multifamily units in the City. While the element lists four residential zoning districts, none of the districts allow more than eight units per acre and, while the City does have a single-family zone allowing five units per acre, most single family zoning is no more than two units per acre. Essentially, there is a lack of a variety of minimum lot sizes and allowable densities. The lack of a variety of lot sizes and densities can impact housing supply, choices and affordability. As a result, the element should include analysis of the impacts of an apparent predominant large lot land use pattern and include programs as appropriate.

Finally, the element should include a discussion of how the City complies with Government Code sections 65852.21 and 66411.7 (SB 9) and add or modify programs (Program E) as appropriate to comply with state law.

A large portion of the lots in Monte Sereno are large
lots and zoned single family. However, the City will be able to achieve the RHNA requirements through the
construction of new ADUs. As noted in comment B.3
above, a program has been added to review potential
multi-family zoning, including SB-10 applications, as
appropriate throughout the city, including for any
annexed lots.

Program E has been updated to clarify that the city's
current requirements are compliant with the SB 9 state
legislation, but opportunities to streamline the review process will be researched.

Pages 2-8 and 2-16
Fees and Exaction: The element lists total development fees for single-family and multifamily development (Table C-4) but should also list the various fees that comprise the total fees per unit. For example, the element should list and evaluate the various impact fees per unit for impacts on housing cost.

The impact fees that are charged for residential
projects include Road Impact Fees and School Impact
Fees, depending on the scope of the project. These fees were included in Table C-3 on page C-9.

Pages C-14 through
C-15
Processing and Permit Procedures: While the element generally describes processing and permitting procedures, it must still list and evaluate site development permit and design review, including typical approval findings, typical number of hearings, and timing and then evaluate impacts on housing supply, cost, feasibility and approval certainty.

Information about permit processing timeframes was
provided in the Draft Housing Element in Table C-5 on
page C-11. Also, pages C-10 to C-11 describe the
timeframe for processing applications and the public
hearing requirements. The Draft Housing Element also
includes Program A which requires review of the permit
processing timeframes to see where streamlining may
be provided.

Pages C-16 through
C-17
Streamlining Provisions: The element should clarify whether the City has procedures consistent with streamlining procedures pursuant to Government Code section 65913.4 (SB 35) and include programs as appropriate.

The City has not adopted permit streamlining
procedures for SB 35 projects as the City is currently in compliance with the RHNA requirements from the 5th
Cycle Housing Element and not subject to SB 35
development applications. However, if, in the future,
the city is subject to SB 35, applications will be
processed as required by the referenced state laws.

Page C-11

Number Section Comment Response/Revision Made to Housing Element Page/Location
of Revision in
Housing
Element
Constraints on Housing for Persons with Disabilities: The element must include an analysis of potential constraints on housing for persons with disabilities, as follows:
• Reasonable Accommodation: The element indicates the City has a reasonable accommodation procedure but must still describe these procedures including approval findings and evaluate potential constraints on housing for persons with disabilities.
• Family Definition: The element concludes the City has a definition of family that does not limit the number of persons.

However, the element should describe the actual definition of family and evaluate its potential impacts, including impacts on unrelated persons.
• Group Homes: The element broadly mentions residential care homes are allowed but it should specifically identify which zones allow the uses, how the uses are allowed (e.g., permit type), any other relevant factors and evaluate potential constraints. The analysis should be conducted for both group homes for six or fewer persons and seven or more persons.

The revised Housing Element includes the details of the Municipal Code requirements for the three items
mentioned. The code requirements for the items noted
do not constrain potential housing development and
that has been explained in the revised Housing
Element.

Pages C-12 through
C-14
Local Ordinances: The element must specifically analyze locally adopted ordinances such as inclusionary ordinances or short-term rental ordinances that directly impact the cost and supply of residential development.

The city does not have an inclusionary ordinance and
does not allow short term rentals. Therefore, these
items do not directly impact the cost and supply of
residential development within the city.

Page C-16
Zoning and Fees Transparency: The element must clarify its compliance with new transparency requirements for posting all zoning and development standards for each parcel on the jurisdiction’s website pursuant to Government Code section 65940.1(a)(1).

Information required by Government Code section
65940.1(a)(1) is available on the following web pages:
https://www.montesereno.org/DocumentCenter/View/
3754/Fee-Schedule
https://www.montesereno.org/2339/ApplicationForms
https://www.montesereno.org/2342/Zoning-andDevelopment-Standards https://www.montesereno.org/2339/ApplicationForms
https://www.montesereno.org/2187/FinanceDepartment
This information has been included in the revised
Housing Element.

Page C-15

Number Section Comment Response/Revision Made to Housing Element Page/Location
of Revision in
Housing
Element
C.1 Housing
Programs
To have a beneficial impact in the planning period and achieve the goals and objectives of the housing element, programs must have discrete timing early in the planning period (e.g., at least annually or by 2025) and specific commitment to housing outcomes (e.g., refrain from language such as “explore”, “develop”, “consider”) Wording of the programs has been updated to provide
more specific anticipated outcomes and the timing of
programs have been revised to move forward higher
priority programs.

Pages 2-7 through 2-
21 C.2 Housing
Programs
As noted in Finding B3, the element does not include a complete site analysis; therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types. In addition, the element should be revised as follows:
• Multifamily Zoning: As noted in Finding B3, the element must include a program to identify sites and appropriate zoning (e.g., 20 units per acre) and development standards to encourage and facilitate multifamily development. • Program P (Low Barrier Navigation Centers): The Program should specifically commit to permit low barrier navigation centers without discretionary action and in compliance with Government Code section 65661.

As noted in comment B.3, a program has been added to
evaluate additional multi-family zoned sites, including the application of SB-10, throughout the city as well as any potential annexations.

The wording of Program P has been updated as noted.

C.3 Housing
Programs
The element must include a program to assist in the development of adequate housing to meet the needs of lower and moderate-income households, including ELI and Special Needs households. These actions should be significant and specific, given the lack of implementation and results in the prior planning periods. Examples of actions include proactive an annual outreach to developers of affordable housing, assisting with funding, supporting funding applications, land acquisition, priority processing, fee waivers, concessions and incentives beyond State Density Bonus Law, assistance with infrastructure and site improvements and monitoring and adjustment at least annually.

Most of the requested efforts are included in Program
G. The wording of the program has been updated to
strengthen the efforts included. However, providing
funding for land acquisition and infrastructure
improvement is an unrealistic expectation for a city
with approximately 1,200 households, an annual
operating budget of $3.5 million, and that employs one
planner. The institution capacity is not available for
funding opportunities without additional resources or
contributions from the state.

Number Section Comment Response/Revision Made to Housing Element Page/Location
of Revision in
Housing
Element
C.4 Housing
Programs
As noted in Findings B4 and B5, the element requires a complete analysis of potential governmental and nongovernmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints.

In addition, as noted in Finding B4, the City lacks a variety of minimum lot sizes and densities and the element should add programs to create a variety of lot sizes, increased densities, and modified development standards to facilitate maximum densities.

As noted in comment B.3, a program has been added to
evaluate additional multi-family zoned sites, including the application of SB-10, throughout the city as well as any potential annexations.

As noted in comment B.2, additional information has
been added to explain the ADU strategy allows and
encourages ADU construction throughout the city
which avoids concentrating affordable housing in
certain areas of the city. A map has been included to
show the location s of the 225 ADU intention letter
received to show the ADU construction will occur
throughout the city.

Also noted in comment B.1, further information has
been provided to note that as a result of SB 9, up to
four dwelling units are allowed on each single family
lot, regardless of lot size, which increasing the density of housing in the City and provide multi-family housing.

Pages 2-8, 2-16, 4-
7, and C-11 through
C-12
C.5 Housing
Programs
As noted in Finding B1, the element requires a complete AFFH analysis. Depending upon the results of that analysis, the City may need to revise or add or modify goals and actions. Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific commitment, milestones, geographic targeting and metrics or numerical targets and, as appropriate, address housing mobility enhancement, new housing choices and affordability in higher opportunity or higher income areas, place-based strategies for community revitalization and displacement protection. For example, the element must add significant and meaningful housing mobility actions to overcome the existing patterns in the City related to the broader region.

An AFFH analysis was provided in Appendix G to the
Housing Element. Staff believes the City's ADU effort
will address the concern concentrating affordable
housing units within certain geographic areas of the city as the ADU will be provided throughout the city as
demonstrated by the written ADU intentions received.

The revised Housing Element includes a map that shows
the locations of the ADU intention letter received. The document has been revised to more explicitly address
the comment.

D Quantified
Outreach
While the element includes quantified objectives for new construction by income level, it currently targets no objectives for rehabilitation and conservation and should be revised accordingly. For example, quantified objectives could incorporate numerical targets for ADU amnesty or anticipated outcomes from Programs Q (Housing Maintenance), R (Infrastructure Capital Improvements), S (Energy Conservation), T (Water Conservation) and U (Fair Housing).

As noted in comment B.2 above, the City does not have
evidence of existing housing that is sub-standard and in need of rehabilitation. Quantified objective have been
added to the programs as noted by HCD.

Page2-21

Number Section Comment Response/Revision Made to Housing Element Page/Location
of Revision in
Housing
Element
E Public
Participation
The element should employ additional methods of public outreach and participation moving forward to include all segments of the community in the public participation process, including engaging organizations which represent lowerincome and special needs groups. In addition, the element should describe comments and how they were incorporated into the housing element.

Additional information has been added about the City's
partnership with West Valley Community Services for
input and outreach during the Housing Element update
process.

The document provided to HCD included an attachment
noting how each public comment was addressed. This
information has been incorporated in the actual revised Housing Element document.

Pages 1-14 through
1-13 and 2-1
through 2-3

RESOLUTION NO. ______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MONTE SERENO ADOPTING A GENERAL PLAN AMENDMENT TO ADOPT THE 2023-2031 MONTE SERENO HOUSING

ELEMENT OF THE GENERAL PLAN IN COMPLIANCE WITH STATE HOUSING ELEMENT LAW.

WHEREAS, the California Legislature has found that “California has a housing supply and affordability crisis of historic proportions. The consequences of failing to effectively and aggressively confront this crisis are hurting millions of Californians, robbing future generations of the chance to call California home, stifling economic opportunities for workers and businesses, worsening poverty and homelessness, and undermining the state’s environmental and climate objectives” (Gov. Code Section 65589.5.); and
WHEREAS, the Legislature has further found that “[a]mong the consequences of those actions are discrimination against low-income and minority households, lack of housing to support employment growth, imbalance in jobs and housing, reduced mobility, urban sprawl, excessive commuting, and air quality deterioration” (Gov. Code Section 65589.5); and WHEREAS, the Legislature recently adopted the Housing Crisis Act of 2019 (SB 330) which states that “In 2018, California ranked 49th out of the 50 states in housing units per capita… California needs an estimated 180,000 additional homes annually to keep up with population growth, and the Governor has called for 3.5 million new homes to be built over 7 years”; and
WHEREAS, State Housing Element Law (Government Code Sections 65580 et seq.) requires that the City Council adopt a Housing Element for the eight-year period 2023-2031 to accommodate the City of Monte Sereno’s regional housing need allocation (RHNA) of 193 housing units, comprised of 53 very-low income units, 30 low-income units, 31 moderateincome units, and 79 above moderate-income units; and WHEREAS, California Government Code section 65300.9 states that with respect to the adoption and administration of general plans, “[t]he Legislature recognizes that the capacity of California cities and counties to respond to state planning laws varies due to the legal differences between cities and counties, both charter and general law, and to differences among them in physical size and characteristics, population size and density, fiscal and administrative capabilities, land use and development issues, and human needs” and further states that “the intent of the Legislature in enacting this chapter [is] to provide an opportunity for each city and county to coordinate its local budget planning and local planning for federal and state program activities, such as community development, with the local land use planning process, recognizing that each city and county is required to establish its own appropriate balance in the context of the local situation when allocating resources to meet these purposes”; and WHEREAS, to comply with State Housing Element Law, Monte Sereno has prepared Housing Element 2023-2031 (the Housing Element) in compliance with State Housing Element Law and has identified sites that can accommodate housing units meeting the City’s RHNA; and WHEREAS, as provided in Government Code Section 65350 et. seq., adoption of the Housing Element constitutes a General Plan Amendment; and

WHEREAS, as provided in Government Code Sections 65352 – 65352.5 the City mailed a public notice to all California Native American tribes provided by the Native American Heritage Commission and to other entities listed; and
WHEREAS, no California Native American tribe requested consultation; and WHEREAS, the City conducted extensive community outreach over the last 12 months including 14 public meetings and community meetings; and WHEREAS, the City reviewed the project's environmental impacts under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and the regulations promulgated thereunder (14 California Code of Regulations §§ 15000, et seq., the "CEQA Guidelines”). The proposed Housing Element will not have the effect of substantially changing regulatory standards or findings required therefore in accordance with CEQA, the proposed ordinance is exempt from CEQA pursuant to Section 15061(b) (3) because the activity is governed by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment, and any changes to the City municipal code as may be required by the proposed Housing Element will be reviewed for environmental impacts at such time as they are adopted or implemented; and
WHEREAS, the City determined that the Housing Element Update is exempt from further review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and the regulations promulgated thereunder (14 California Code of Regulations §§ 15000, et seq., the "CEQA Guidelines"), that in accordance with the California Environmental Quality Act (CEQA), the City reviewed the project's environmental impacts under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and the regulations promulgated thereunder (14 California Code of Regulations §§ 15000, et seq., the "CEQA Guidelines") and deemed the project to be exempt from further CEQA review pursuant to section 15332 (Class 32 In-Fill Development Projects), in that all of the likely development envisioned under the revised Housing Element consists of in-fill projects that would add additional housing on land already zoned for such residential uses, on parcels smaller than five acres surrounded by urban uses, on sites that are not habitat for threatened, endangered or rare species, where no significant effects to traffic, noise, air or water quality are anticipated, and where sufficient utilities and public services exist, as well as under section 15303, in that development is anticipated to result in construction primarily of residential developments in existing residential zones as specified in section 15303(a);; and WHEREAS, in accordance with Government Code Section 65585 (b), on August 9, 2022, the City posted the draft Housing Element and requested public comment for a 30-day review period, and on October 11, 2022, after responding to public comments, the City submitted the draft Housing Element to the State Department of Housing and Community Development (HCD) for its review; and
WHEREAS, on January 9, 2023 the City received a letter from HCD providing its comments and findings regarding the draft Housing Element; and WHEREAS, on January 31, 2023, the City Council, as the City’s planning agency, and Site and Architectural Commission held a special joint meeting and conducted a duly and properly noticed public hearing to take public testimony and consider this Resolution regarding the proposed 2023-2031 Monte Sereno Housing Element, reviewed the 2023-2031 Monte Sereno Housing Element and all pertinent maps, documents and exhibits, including HCD’s

findings, the City’s response to HCD’s findings, the staff report and all attachments, and oral and written public comments;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Monte Sereno, as follows:

Section 1. The foregoing recitals are true and correct and are incorporated by reference into this action.

Section 2. The 2023-2031 Monte Sereno Housing Element substantially complies with Housing Element Law, as provided in Government Code 65580 et seq., and contains all provisions required by State Housing Element Law, as shown in Attachment A to this resolution, incorporated herein.

Section 3. As required by Government Code Section 65585(e), the City Council has considered the findings made by the Department of Housing and Community Development included in the Department’s letter to the Monte Sereno dated January 9, 2023, consistent with Government Code Section 65585(f), the City Council has changed the 2023-2031 Monte Sereno Housing Element in response to the findings of the Department to substantially comply with the requirements of State Housing Element Law as interpreted by HCD.

Section 4. The 2023-2031 Monte Sereno Housing Element, as shown in Attachment A to this Resolution, incorporated herein, is hereby adopted, and the 2015-2023 Monte Sereno Housing Element is hereby repealed.

Section 5. This Resolution shall become effective upon adoption by the City Council.

Section 6. The City Manager or designee is hereby directed to file all necessary material with the Department of Housing and Community Development for the Department to find that the 2023-2031 Monte Sereno Housing Element is in conformance with State Housing Element Law and is further directed and authorized to make all non-substantive changes to the 2023-2031 Monte Sereno Housing Element to make it internally consistent or to address any non-substantive changes or amendments requested by the Department to achieve certification.

Section 7. The City Manager or designee is hereby directed to distribute copies of the Housing Element in the manner provided in Government Code Sections 65357 and 65589.7.

REGULARLY APPROVED this 31st day of January 2023 by the following roll call vote:

Ayes:

Noes:

Abstain:

Absent:

Bryan Mekechuk, Mayor

Attest: ___________________________
Gloisy Gonzalez-Langarica, City Clerk

Attachment A: 2023-2031 Monte Sereno Housing Element

Consider Adoption of the 6th Cycle Housing Element
(CEQA: Exempt, Guidelines sections 15303, 15332, 15061) Attachment 4.

Monte Sereno 2023-2031 Housing Element is available online at https://athomeinmontesereno.com/

1 Diana Perkins
From: Alex Qiao <[email protected]>
Sent: Friday, January 20, 2023 8:45 PM
To: Diana Perkins; Bryan Mekechuk; City Manager
Cc: Burton Craig; Rowena Turner; Evert Wolsheimer; Javed Ellahie Subject: Comments about Monte Sereno housing elements draft update Dear City planner Diana, Mr. Mayor, Mr. City manager and City council members, I am writing to you to follow up the housing element discussion we had at Tuesday's council meeting and want to share my comments and concerns. City staff did tremendous work on this important program and we, as residents of Monte Sereno, respect the effort and would like to participate in the discussion to make the program meaningful and successful. I am seeing this as an opportunity to help our city become a better community.

Among many aspects of HCD's feedback, the one that has been repeatedly brought up in feedback section A, B3 and B4, is the comments about the lack of the variety of minimum lot sizes and allowable densities. Granted the ADU strategy is great to provide additional housing units, but to a city, it needs more choices and varieties. So a more comprehensive strategy is necessary.

Please consider making some amendments, not only providing additional information, but further investigate any other options to complement the current housing element draft. Here are some of my thoughts:

1. Reconsidering the rezoning option. It is practical, more flexible and more manageable.

2. Prioritize SB9 modification. It will encourage homeowners to develop more housing units that will be much more accountable than ADUs.

3. More effective and in-depth public involvement. That will generate comprehensive strategies to meet the needs from many aspects that city council and staff may not be aware of in the real world.

Rezoning
Monte sereno consists of large lots but there are no multifamily units in the City. If a multifamily zone is not the city of Monte Sereno's favorite plan, then rezoning is much more practical to accomplish the same goal. We have lots of R144 zones that used to be farm lands, most of which are no longer needed and no longer used for that purpose. City should rezone the obsolete zoning to fit better in the current society. We can see many vacant lots that have not been in use and lack maintenance. The good news is that back in 2022, the staff had curated and analyzed the city's lot inventory, they had identified nine (and maybe more at a later time) existing lots as candidates that are suitable for rezoning (to R-1-8).

Those nine lots can accommodate up to 86 new housing units. As an example, with a rezone and subdivision of a one acre lot , it can develop 4 - 5 single family houses plus ADUs, that gives up to 10 units in total on a lot, where it currently only has one main unit occupying the one acre land. Can we bring rezoning back to discussion and see if we can refine the idea and make use of it in the updated draft for this housing element 6th cycle? This will help the city to grow the number of housing units in a manageable manner. City and site architect committee would be closely involved for such development to ensure the integrity and character of the city, while it is providing higher density. Especially for those vacant lands, it will be in good use and serve a good purpose for people that are struggling with their housing situation.

This is a great organic growth of a city without sacrificing the legacy and the character we are all trying to protect.

Utilize SB9 and beyond
From Staff recommendation in the latest staff report on this Tuesday's council meeting, it states that "as a result of SB 9, up to four dwelling units are allowed on each single family lot, regardless of lot size, which increases the density of housing in the City and provides multi- family housing". The statement is absolutely correct. However, given the current circumstance, it is not practical in Monte Sereno, and thus not very convincing. From the Staff report of City Council meeting on Apr 19 2022, "Staff has received numerous inquiries over the past several months from customers regarding potential SB-9 projects; however, no applications have been submitted. The feedback received has consistently stated that the 800 square foot building size limit makes an SB-9 project impractical." So clearly in reality, the current constraint in the City's SB9 ordinance is the barrier for adoption. If only the City can modify the ordinance, eliminating the constraints such as square foot limit and other aspects, home owners will be encouraged to develop more house units on their land.

The concerns were mentioned by some of the prior council members as overcrowded and unregulated housing units development would result from the abuse of the SB9. But believe it or not, the market will have the magic power to regulate. Outreaching to developers, to homeowners, people will have a realistic plan for the house units that fit to the region. I truly hope, City can give people a chance to utilize SB9 for their land. I understand that the city's schedule says

2 SB9 will be discussed 2023‐2024, but right now is a perfect time to take the leap and prioritize the effort and push it through in the earliest time frame. As far as I know, long process time is also a constraint for complying with state housing law and should be eliminated. And besides, it will help to support the current housing element and make it look much better that the City is taking the HCD feedback seriously and make adjustments accordingly.

Moreover, the city should have planned beyond 193 units with enough buffer room that were allocated by RHNA, which marks the minimum should be met. The number of ADU intention forms that the city provided, is the maximum theoretical yield. And using the maximum theoretically yield to meet the HCD's bare minimum requirement is not a safe plan. Not to mention, HCD had raised the question of the legitimacy of ADU intention survey, the actual tool and response from the owner. And that all significantly affects the actual conversion rate from intention to action. So in combination with all the factors, the exclusive ADU strategy that Monte Sereno proposed might not be sufficient. As I commented, a more comprehensive plan will be more convincing and will be a much better holistic strategy to tackle the housing element for our city.

Public participation
I am sure the City is trying to do its best “diligent effort...to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort." I see several listed efforts for outreaching. But honestly, myself as a resident that would like to proactively participate in this housing element process, I still feel a lack of communication, especially in an interactive way to fully express myself. I've been talking to the city planner in person, I've joined council meetings when I can and had a few email communications. One thing I felt lacking is the looping back. If possible, would we have any opportunity to talk to Mr. Mayor, City planner and or city manager, council members, individually or as a meeting, in person or zoom conference, preferably interactive communication that is beyond the limited 3 minute comments section in the council meeting? I know you all have very busy schedules, but I would like to see if that is possible. Please let me know if that could happen and I'd love to clear my calendar to meet you folks. I can't wait to talk to you.

Last but not least, congratulations to all the new council members, Mr. Mayor, and thank you for taking up the great responsibilities to serve our city. I sincerely wish we will make our city stronger in 2023 and beyond.

Thanks for reading,
Alex Qiao
Residents of Monte Sereno on 11795 Vineland Ave.

T.H.I.S. DESIGN & DEVELOPMENT P.O.Box 1518, Los Gatos, CA 95031 Tel: 408.354.1833 Fax: 408.350.1823
City of Monte Sereno
18041 Saratoga-Los Gatos Rd
Monte Sereno, CA 95030
January 23rd, 2023
The Housing Element and SB-9
City Council and Site & Architecture Committee members.

I was unfortunately unable to attend the Housing Element hearing last week, but I have some comments and observations that I would like to share.

Last year the City made ADUs the focus of its Housing Element push for this 8-year period. Having decided on this strategy I am impressed with the focus and attention given by City officials and staff to make this happen – congratulations all round.

From my standpoint, I am trying to help and have one ADU almost ready for building approval and am just resolving some issues with SCCFD – who are turning out to be the main problem now for new construction in the City. I have several others in various stages of design and hope to present them for permitting soon.

That said, I am disappointed in this ‘single-minded’ focus for new construction in the City.

There is more to Monte Sereno than ADUs alone. This would appear to be born out by the critique from HCD of the Housing Element proposal, which expressed significant concern about its lack of diversity and has asked for a response in the final revision.

Early in the process, last year, a number of ‘sites’ were considered for potential re-zoning [allowing for the possibility in the future of more lots being created]. If I recall correctly, one of those areas was near the intersection of Vineland and Karl Avenue – amongst others. My impression is that the entire ‘rezoning’ process was shelved because ADUs presented a ‘path of least resistance’ for the Council. But that does not make those sites any less appropriate for potential ‘lot splits’ or other forms of development. What is absent is any realistic path to achieving this. Individuals would have to ask for re-zoning of their properties – which would amount to ‘spot re-zoning’ which is not allowed.

Which brings me to SB-9. The City has failed abysmally in this regard – in that we have made it easy to split suitable lots but impossible to build any new home(s) that would be appropriate in the City, thus thwarting the intent/spirit of the law. I do not regard the creation of lots in Monte Sereno in which only one or two 800 sq ft homes are permitted – no matter the size of the lot as beneficial. If it happens, it will destroy neighborhoods, if it does not, it just shows how Monte Sereno has stymied SB-9.

If you are looking for flexibility and diversity while still maintaining neighborhood character, Los Gatos’s approach [which required a great deal of work by both staff and the Council to reach a final ordinance] could be considered the best in the region. I would like to give you a quick summary of the end result.

Firstly, they – like Monte Sereno – have a set of zoning rules that takes into account the size of a lot as well as the Zoning District in which it is situated. Secondly, Los Gatos was interested keeping the character of neighborhoods – with each lot maintaining the characteristics of their single family zoning districts. But they also wanted to encourage more ADU sized homes - as Monte Sereno has chosen to do.

So any new lot created under SB-9 is permitted up to 2 homes, one an ADU sized home [max 1,200 sq ft] and the other based on the zoning district and lot size. The ADU sized unit is required to be included in any building permit application – thus helping the balance of diversity on the land.

I would seriously encourage Monte Sereno to re-consider its SB-9 ordinance to follow this solution proposed in Los Gatos. I know that this would not be a ‘forced re-zoning’ such as the City was considering in the Karl/Vineland area – and that is probably a good thing.

But what it would do is permit some of the owners of more suitable lots there and similar areas of Monte Sereno to ‘elect’ to do what SB-9 envisions – without ‘requiring’ them to do so. Wouldn’t it be nice to give Monte Sereno residents the opportunity to use SB-9 in a way that is beneficial to the City, the neighborhood and to themselves as well? Remember that for many residents, this is a way for them to remain in the community that they live in – rather than having to leave the area because of the cost of maintaining a home in the City.

When it passes legislation, the State has to look at the ‘big picture’ and with housing in short supply and costs and prices continuing to climb, the ‘ADU’ law from 2017 which was first considered ‘over-reach’ is now seen as beneficial in most communities.

Certainly the Housing Element approach in Monte Sereno has embraced it fully. If we look at SB-9 closely the state has come up with a good law, which we can continue to fight [as with our current ordinance] or we can look at how we can use it to the City’s advantage and move forward.

It has been my experience in other jurisdictions where I have helped residents develop their properties using SB-9 that this law is not being abused. The law is not for the benefit of developers – but rather for the benefit of Monte Sereno residents and potentially for the City of Monte Sereno itself if enacted appropriately. I would seriously encourage the Council to act on this matter now - it might be too late for this Housing Element, but inaction is not a solution, it is a mistake.

Thank you for your consideration.

Tony Jeans