Monte Sereno City Council
July 11, 2023

AGENDA
City of Monte Sereno
Tuesday, July 11, 2023
Special Meeting of the City Council
4:00 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

ORAL COMMUNICATIONS
Persons wishing to address the Council on any matter of City business not listed on the agenda may do so at this time. Each speaker will normally be allotted three minutes, subject to the Mayor or a majority of the Council’s ability to limit the amount of time allocated to speakers based on the number of speakers and the need for expedient administration of City business in light of the number and length of items on the agenda.

WRITTEN COMMUNICATIONS
Copies of communications have been provided to Council for review prior to this meeting. Council Members desiring to read or discuss any written communication may do so at this time. No action may be taken except to place a particular item on a future agenda for Council consideration.

CONSENT CALENDAR
It is recommended that all items listed below be acted on simultaneously unless separate discussion and/or action is required by a Councilmember. One public comment period will be provided, although speakers speaking on more than one item may be allocated additional time by the Mayor or a majority of the Council.

1. Approve Warrant List Dated July 11, 2023 in the Amount $383,822.87 Staff recommends the City Council approve the Warrant List.

Staff Report - SR-23-145 - Pdf
4 - 7

2. Approve the Minutes of the June 20, 2023 Special City Council Meeting Staff recommends approval of the Minutes of the June 20, 2023 Special City Council Meeting.

Staff Report - SR-23-144 - Pdf
8 - 10

3. Approve the Minutes of the June 20, 2023 Regular City Council Meeting Staff recommends approval of the Minutes of the June 20, 2023 Regular City Council Meeting.

Staff Report - SR-23-146 - Pdf
11 - 16

UNFINISHED BUSINESS

1. Housing Element Update – Discuss Housing Element Revisions and Direct Staff to Resubmit the Revised Housing Element to the California Department of Housing and Community Development
Staff recommends that the City Council discuss the Housing Element revisions and direct staff to resubmit the revised Housing Element to the California Department of Housing and Community Development.

Staff Report - SR-23-143 - Pdf
17 - 377

NEW BUSINESS

1. The Civic Center Master Plan Update
Monte Sereno Community Center Update
Master Demo Proposed Site Plans
378 - 383

2. Implementation of the Investment Policy
Informational only, no action required.

Wells Fargo Advisors Agreement
T-Bill Ladder for City of Monte Sereno
384 - 388

ADJOURN
* All items on the agenda are subject to action/or change by the City Council In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk (408) 354-7635. If requested of the City Clerk, agendas and documents in the agenda packet can be made available in appropriate alternative formats to persons with a disability.

Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. [28CFR 35.102-35.104 ADA Title II]

STAFF REPORT
Meeting: City Council - Jul 11 2023
Agenda Heading: CONSENT CALENDAR
Staff Contact: Reynold Samoranos,
Department: Finance Manager
Title: Approve Warrant List Dated July 11, 2023 in the Amount $383,822.87 Recommendation(s):

Staff recommends the City Council approve the Warrant List.

Fiscal Impact:

There are no unbudgeted fiscal impact with this agenda item.

Public Noticing:

The City Council's agenda was posted at City Hall and the agenda and this report appear on the City's website.

Attachments:
2023 07 11 Warrants List (Final)

CITY OF MONTE SERENO

REGISTER OF ACCOUNTS PAYABLE
AS OF THESE DATES:

July 11, 2023
CHECK
NO. TO FOR AMOUNT ACCOUNT
NO.
20361 Prime Tree Care, Inc.

Removal of wood and grind stump at Acacia ($1700)
and remove bushes and trees entrance of Constitution
($2200)
3,900.00 01-860
20362 Alana Consulting, LLC
Building Official hourly services (06/05/2023 to
07/02/2023) $8510; Liquid Web hosting $311, and ePermit development $5980 14,800.52 01-765 01-811
20363 Apex Asphalt Paving 6" asphalt removal and installation on Daves ave and Greenwood Rd. 8,440.00 01-845
20364 ArchiveSocial Social Media Archiving Subscription 4,188.00 01-811 20365 Association of Bay Area
Government Natural gas utilities for City Hall 180.00 01-705 20366 BMI Imaging Systems Web hosting for June 2023 225.00 01-715 20367 Building Services Group,
Inc. Refund for double payment of Business License 59.00 01-232 20368 CIVICPLUS
Municode - pages, ordBank by project, electronic
media option, blank supplement and images, graphs &
tabular matter.
1,240.00 01-720
20369 CSG Consultants, Inc
Project Management and Staff Augmentation support
for Engineering / Public Works on PIP 2023
management, Greenwood Dr, and Constitution
projects 05/02/2023 to 05/26/2023 ($44215); 15155 &
15181 Becky Lane LLA review services ($2300) and
Code Enforcement Services ($130).
46,645.00 01-765
01-545
20370 Delta Dental of California Dental insurance premiums July 2023 704.94 01-635 20371 Dicar Networks, Inc.

One Lenovo ThinkPad P15 laptop ($2801), Two
Lenovo ThinPad T14 G3 ($3360), Lenovo Thinkpad
USB-C Dock ($240) and 24" IPS Panel monitor ($217)
plus tax ($602).
7,220.34 01-811
20372 DocuSign Inc eSignature Business Pro for Government ($2700) and Premier Support eSign ($405) 3,105.00 01-811
20373 Foster & Foster, Inc. Prepare GASBS 75 Disclosure Report for the FY 2022 audit 1,480.00 01-470
20374 Frontier Communications Dedicated landline 56.34 01-720 20375 Heidi's Commercial
Cleaning
Cleaning services for City Hall ($600) and cleaning
supplies ($150) 750.00 01-860
20376 JZ's Carpet Care Carpet tile repairs ($350) and carpet steam cleaned at City Hall ($945) 1,295.00 01-860
20377 M-Group Housing Element Update assistance May 2023 8,926.25 01-535 20378 M Hayes Consulting Staffing search services for Director Public Works position - Hired Daryl Jordan (started July 1, 2023) 12,500.00 01-535 1 of 3 Page 5 of 388

CITY OF MONTE SERENO

REGISTER OF ACCOUNTS PAYABLE
AS OF THESE DATES:

July 11, 2023
CHECK
NO. TO FOR AMOUNT ACCOUNT
NO.
20379 Mello Pipelines, Inc. Constitution Ave road improvement project and install new storm manhole and curb inlet on Constitution Ave. 14,800.00 05-850 20380 MissionSquare - 301546 Funding 457 Plan - June 2023 1,184.64 01-660 20381 Pacific Gas & Electric
Electricity services for Annex Building ($29), City Hall ($572), Rose Andrews Lighting Dist ($48), Loma
Sereno Lighting Dist ($181), and Monte Sereno City
streets ($194),
1,023.76
01-705
50-945
40-935
05-890
20382 RICOH USA, INC. Copier rental (07/04/2023 to 08/03/2023) 480.23 01-715 20383 RICOH USA, INC. Black and White and Color copies (03/01/2023 to 05/31/2023) 479.42 01-725
20384 Sage Software Inc. Accounting software annual subscription fee 970.00 01-811 20385 The A.I.M.S. Corporation Don Wimberly, Consulting Engineer (05/29/2023 to 07/02/2023) 15,700.00 01-765
20386 Titan Consulting Design
& Construction
Refund over payment of permit fees on 18450 Bicknell
Road, Project #2023-0128 278.50 01-236
20387 TL Engineering Conduct Topographic Survey, Boundary Survey, and CAD Base Mapping on Daves S-Curve project 11,500.00 12-915 20388 Town of Los Gatos
Finance Department Police services 84,217.00 03-545
20389 US Postmaster USPS Marketing Mail (privilege to mail at presorted prices) 290.00 01-711
20390 Vision Service Plan (CA) Vision Care Insurance premium (June 2023) 223.58 01-636 20391 Hillview Design Print
Media Two nameplates (2" x 8") 81.77 01-725
20392 Vision Service Plan (CA) Vision Care Insurance premium (July 2023) 223.58 01-636 20393 Art Docents of Los Gatos,
Inc. Community Based Organization Grant Award FY 2024 4,000.00 01-550 20394 Los Gatos Public Media -
KCAT TV Community Based Organization Grant Award FY 2024 5,000.00 01-550 2 of 3 Page 6 of 388

CITY OF MONTE SERENO

REGISTER OF ACCOUNTS PAYABLE
AS OF THESE DATES:

July 11, 2023
CHECK
NO. TO FOR AMOUNT ACCOUNT
NO.
20395 Los Gatos Community
Concert Association Community Based Organization Grant Award FY 2024 3,000.00 01-550 20396
Los Gatos Education
Foundation and One
Community
Community Based Organization Grant Award FY 2024 4,000.00 01-550 20397 Los Gatos Music in the
Park Community Based Organization Grant Award FY 2024 3,500.00 01-550 20398 SAFE Worldwide Community Based Organization Grant Award FY 2024 1,000.00 01-550 20399 Susan G. Komen
Foundation
The Susan G. Komen Foundation helps breast cancer
patients through their experience by providing
experienced clinicians on a hotline and contributing to funding research to cure breast cancer.
1,000.00 01-550
20400 Bay Cities Joint Power
Insurance
FY 2023-24 Annual Insurance Contribution - General
Liability Program ($108469), Property Program
($3577), Crime Program ($94), Cyber Liability Program
($3015).
115,155.00 01-540
TOTAL WARRANT LIST $383,822.87

I, REYNOLD SAMORANOS, FINANCE OFFICER DO HEREBY CERTIFY THAT THE

PROCEEDING ACCOUNTS HAVE BEEN CHECKED AND FOUND CORRECT TO THE BEST OF MY KNOWLEDGE AND BELIEF.
3 of 3 Page 7 of 388

STAFF REPORT
Meeting: City Council - Jul 11 2023
Agenda Heading: CONSENT CALENDAR
Staff Contact: Gloisy Gonzalez-Langarica, City Clerk
Department: City Clerk
Title: Approve the Minutes of the June 20, 2023 Special City Council Meeting Recommendation(s):

Staff recommends approval of the Minutes of the June 20, 2023 Special City Council Meeting.

Fiscal Impact:

There are no unbudgeted fiscal impacts with this agenda item.

Public Noticing:

The City Council’s agenda was posted at City Hall and the agenda and this report appear on the City’s website.

Attachments:
06-20-23 Special Meeting Minutes DRAFT

MONTE SERENO CITY COUNCIL

MEETING MINUTES

SPECIAL MEETING
5:30 p.m.

June 20, 2023

MEETING CALLED TO ORDER
At 5:40 p.m., Mayor Mekechuk called the meeting to order.

ROLL CALL
Present – Chambers: Councilmember Craig, Councilmember Ellahie, Vice Mayor Wolsheimer and Mayor Mekechuk

Absent: Councilmember Turner
Staff: City Attorney Powell, City Manager Leonardis and City Clerk Gonzalez-Langarica

PUBLIC COMMUNICATION REGARDING CLOSED SESSION ITEMS
None.

Mayor Mekechuk opened the item for Public Comment.

With no one wishing to speak, Mayor Mekechuk closed Public Comment.

City Council adjourned to Closed Session at approximately 5:41 p.m.

CLOSED SESSION

1. EMPLOYEE PERFORMANCE EVALUATION
Government Code Section 54957
Title: City Manager

RECONVENE TO OPEN SESSION
City Council reconvened to Open Session at approximately 6:02 p.m. with Mayor Mekechuk, Councilmember Craig, Councilmember Ellahie and Vice Mayor Wolsheimer present.

REPORT ON ACTION TAKEN DURING CLOSED SESSION
Mayor Mekechuk stated there was no reportable action.

City Attorney.

ADJOURN

The meeting of the Special City Council Meeting adjourned at approximately 6:03 p.m.

Bryan Mekechuk, Mayor
ATTEST:
l
Gloisy Gonzalez-Langarica, City Clerk

STAFF REPORT
Meeting: City Council - Jul 11 2023
Agenda Heading: CONSENT CALENDAR
Staff Contact: Gloisy Gonzalez-Langarica, City Clerk
Department: City Clerk
Title: Approve the Minutes of the June 20, 2023 Regular City Council Meeting Recommendation(s):

Staff recommends approval of the Minutes of the June 20, 2023 Regular City Council Meeting.

Fiscal Impact:

There are no unbudgeted fiscal impacts with this agenda item.

Public Noticing:

The City Council’s agenda was posted at City Hall and the agenda and this report appear on the City’s website.

Attachments:
06-20-23 Regular Meeting Minutes DRAFT

MONTE SERENO CITY COUNCIL MEETING MINUTES

REGULAR MEETING
7:00 p.m.

June 20, 2023

MEETING CALLED TO ORDER
At approximately 7:01 p.m., Mayor Mekechuk called the meeting to order.

ROLL CALL
Present – Chambers: Councilmember Ellahie, Councilmember Turner, Councilmember Craig, Vice Mayor Wolsheimer and Mayor Mekechuk

Absent: None
Staff: City Attorney Powell, City Planner Perkins, Finance Officer Samoranos, City Manager Leonardis and City Clerk GonzalezLangarica

PLEDGE OF ALLEGIANCE
Sujatha Venkatraman with West Valley Community Services conducted the Pledge of Allegiance.

Mayor Mekechuk welcomed City Attorney Powell before proceeding with the meeting.

ORDERS OF THE DAY
Mayor Mekechuk requested the agenda proceed in the following order:

Unfinished Business Item #1, New Business Item #4, #2, #1, #3, #5, #6 and #7.

PRESENTATIONS
None.

ORAL COMMUNICATIONS
None.

WRITTEN COMMUNICATIONS
None.

CONSENT CALENDAR (TO BE ACTED UPON BY A SINGLE MOTION)

1. Approve the Minutes of the May 16, 2023 Regular City Council Meeting and June 6, 2023 Regular City Council Meeting

2. Approve Warrant List Dated June 20, 2023 in the Amount $214,656.70 Mayor Mekechuk opened the Consent Calendar for Public Comment. With no one wishing to speak, Mayor Mekechuk closed Public Comment.

MOTION: Motion by Councilmember Craig to approve the Consent Calendar.

Seconded by Vice Mayor Wolsheimer.

VOTE: Motion passed. (5-0-0)

PUBLIC HEARINGS
None.

UNFINISHED BUSINESS

1. Housing Element Update: Affirmatively Furthering Fair Housing and Multifamily Rental Requirements
City Planner Perkins provided a staff report and answered questions from the Council.

City Attorney Powell assisted with answering questions from the Council.

Mayor Mekechuk opened the item for Public Comment.

Public Comment
▪ Former Mayor Shawn Leuthold
▪ Former Mayor Lon Allan
▪ Resident Alex Oiao
▪ Resident Johnny Zhang
▪ Former Mayor Liz Lawler
With no one else wishing to speak, Mayor Mekechuk closed Public Comment.

Directions were provided to staff to bring back information on sites in the City of Monte Sereno identified for SB10. The Council would also like staff to meet with HCD and explain why multi-family homes don’t work in Monte Sereno. Staff will address all the Council’s comments on the Housing Element in a future Special Meeting. A draft of the new revised Housing Element will be presented to Council a week prior to a Special Meeting to allow time for Council to provide their input.

NEW BUSINESS

4. Consideration of the Approval of an Updated Fee Schedule for User and Regulatory Fees City Planner Perkins provided a staff report.

Mayor Mekechuk opened the item for Public Comment. With no one else wishing to speak, Mayor Mekechuk closed Public Comment.

MOTION: Motion by Councilmember Turner to Approve Updated Fee Schedule for User and Regulatory Fees. Seconded by Councilmember Ellahie.

VOTE: Motion passed. (5-0-0)

2. Consider and Award West Valley Community Services a One Time Grant in the Amount Not to

Exceed $5,000 for the Back-to-School Program
City Clerk Gonzalez-Langarica provided a staff report.

Executive Director of West Valley Community Services, Sujatha Venkatraman, provided Council further information on the Back-to-School Program.

Mayor Mekechuk opened the item for Public Comment. With no one wishing to speak, Mayor Mekechuk closed Public Comment.

MOTION: Motion by Councilmember Ellahie to Award West Valley Community Services a One Time Grant in the Amount of $5,000 for the Back-toSchool Program. Seconded by Vice Mayor Wolsheimer.

VOTE: Motion passed. (5-0-0)

1. Consider and Accept the Fiscal Year 2021-2022 Audit Report City Finance Officer Samoranos provided a staff report and assisted with answering questions from the City Council.

Mayor Mekechuk opened the item for Public Comment.

Public Comment
▪ Terry McCarthy
With no one else wishing to speak, Mayor Mekechuk closed Public Comment.

MOTION: Motion by Councilmember Turner to Accept the Fiscal Year 2021-2022 Audit Report. Seconded by Councilmember Craig.

VOTE: Motion passed. (5-0-0)

3. Consider the Partial Allocation or Investment of Local Area Investment Funds (LAIF) to Treasury Bills (T- Bills) in the Amount of $4.5 million and Approve a Resolution Adopting the City's Investment Policy
City Manager Leonardis provided a staff report and assisted with answering questions from the City Council.

Mayor Mekechuk opened the item for Public Comment.

Public Comment
▪ Terry McCarthy
With no one else wishing to speak, Mayor Mekechuk closed Public Comment.

MOTION: Motion by Mayor Mekechuk to Approve the Partial Allocation or Investment of Local Area Investment Funds (LAIF) to Treasury Bills (TBills) Authorizing the City Manager to take all necessary actions in Consultation with the Finance Committee. Seconded by Vice Mayor Wolsheimer.

VOTE: Motion passed. (5-0-0)

5. Setting Fiscal Year 2023-24 Appropriations Limit

City Manager Leonardis provided a staff report and assisted with answering questions from the City Council.

Mayor Mekechuk opened the item for Public Comment. With no one wishing to speak, Mayor Mekechuk closed Public Comment.

MOTION: Motion by Councilmember Craig to Adopt a Resolution Setting the Appropriations Limit for Fiscal Year 2023-2024 based upon the Price Factor and Population Data Provided by the State of California Department of Finance. Seconded by Vice Mayor Wolsheimer.

VOTE: Motion passed. (5-0-0)

6. Consider and Approve Fiscal Year 2023-2024 Operating and Capital Budget and Adopt a Resolution Adopting the Proposed Fiscal Year 2023-2024 Operating and Capital Budget City Finance Officer Samoranos provided a staff report and answered questions from the Council.

Mayor Mekechuk opened the item for Public Comment. With no one wishing to speak, Mayor Mekechuk closed Public Comment.

MOTION: Motion by Councilmember Ellahie to Approve Fiscal Year 2023-2024 Operating and Capital Budget and Adoption of Resolution Adopting the Proposed Fiscal Year 2023- 2024 Operating and Capital Budget. Seconded by Councilmember Turner.

VOTE: Motion passed. (5-0-0)

7. Discussion of a Senior Services Roadmap for the City of Monte Sereno and Appointment of Resident Nancy Pearson as the City Council Liaison
City Manager Leonardis provided a staff report and assisted with answering questions from the City Council.

Mayor Mekechuk opened the item for Public Comment.

Public Comment
▪ Tom Picraux
With no one else wishing to speak, Mayor Mekechuk closed Public Comment.

MOTION: Motion by Councilmember Ellahie to Appointment Resident Nancy Pearson as the City Council Liaison for the Senior Services Roadmap for the City of Monte Sereno for a Period to not Exceed 8 Months. Seconded by Councilmember Craig.

VOTE: Motion passed. (5-0-0)

COMMITTEE/COMMISSION REPORTS
Councilmember Craig stated having nothing to report.

Councilmember Ellahie stated having nothing to report.

Councilmember Turner stated having nothing to report.

Vice Mayor Wolsheimer stated having nothing to report.

Mayor Mekechuk provided City Clerk Gonzalez-Langarica a hard copy of his Committee and Commission Reports.

COUNCILMEMBER COMMENTS
None.

CITY MANAGER’S REPORT
City Manager Leonardis did a friendly reminder that the City of Monte Sereno is taking nominations for Citizen of the Year. The deadline for submitting applications is August 10, 2023, to be honored at the Annual City Picnic.

FUTURE AGENDA ITEMS
Upcoming future agenda items: City Manager’s evaluation, Community Center, and Housing Element.

ADJOURN
Mayor Mekechuk adjourned the meeting at approximately 10:10 p.m.

Bryan Mekechuk, Mayor
ATTEST:
____________________________________
Gloisy Gonzalez-Langarica, City Clerk

STAFF REPORT
Meeting: City Council - Jul 11 2023
Agenda Heading: UNFINISHED BUSINESS
Staff Contact: Diana Perkins, City Planner
Department: City Planner
Title: Housing Element Update – Discuss Housing Element Revisions and Direct Staff to Resubmit the Revised Housing Element to the California Department of Housing and Community Development
Recommendation(s):

Staff recommends that the City Council discuss the Housing Element revisions and direct staff to resubmit the revised Housing Element to the California Department of Housing and Community Development.

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 Housing Element was adopted on January 31, 2023, however, HCD provided comments on March 31, 2023 finding that further revisions were required to the adopted Housing Element in order to reach substantial compliance with Housing Element law.

Below is an anticipated schedule for further revisions:

Anticipated Third Submittal Schedule
City Council to direct staff to resubmit the
revised Housing Element to HCD. July 11, 2023
Post draft revisions on website and email a
link to all individual and organization that
have previously requested notices relating to
the Housing Element for at least seven days.

July 17, 2023
Submittal of Revised Housing Element to
HCD July 21, 2023

Housing Element Overview
Monte Sereno’s current Housing Element covers 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 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 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
During the 6th Housing Element 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 requiring adoption of a compliant housing element. A court finding a Housing Element inadequate may also 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).

Summary of Prior Meetings and Study Sessions
Over the last 16 months, Monte Sereno has conducted a comprehensive community engagement and outreach strategy as required by Government Code 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 Housing Element process and schedule.
• April 19, 2022 – City Council meeting to discuss sites inventory. • 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.
• 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 Housing Element was reviewed at this meeting.

• 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 Housing Element update.
• January 17, 2023 – City Council meeting to review comments received by HCD on the draft Housing Element.
• January 31, 2023 – Joint City Council and Site and Architectural Commission meeting to consider adoption of the revised Housing Element.
• February-March 2023 – Additional outreach and interviews conducted with very-low income residents in the regional to better understand their housing needs. • June 6, 2023 – City Council meeting to review comments received by HCD on second submittal of the Housing Element.
• June 20, 2023 – City Council meeting to discuss the multifamily rental housing requirements and options.

Feedback received throughout the ongoing community engagement and outreach process has assisted staff and the consulting team in preparing the Housing Element Update and related items.

Draft 2023-2031 Housing Element
The City Council approved the draft Housing Element at the September 6, 2022 City Council meeting. The draft 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 2023-2031 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 Draft 2023-2031 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 include the policies approved by the City Council at the June 21, 2022 meeting, including the addition of water conservation requirements discussed at that meeting (Program S), and additional policies suggested by the Santa Clara County Planning Collaborative and the consultant team for compliance with HCD requirements.

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 Housing Element is 193, an increase of over 300% 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 for the 6th cycle, 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 included the following:
• Informational postcards mailed to each resident/property owner; • Door-to-door neighborhood canvassing;
• Direct mailings to property owners regarding the ADU incentive program; • 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).

Analysis:

Comments Received HCD – March 31, 2023
The adopted Housing Element was submitted to HCD on February 1, 2023 for their review.

Comments were received on March 31, 2023 and are included in Attachment 1 to this staff report. A detailed listing of each comment and a summary of the revision made to the document to address the comment is included in Attachment 2. Following is a summary of the comments and recommendations.

Section A – Review and Revision
HCD has asked for additional and 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. An analysis of the cumulative effectiveness of past goals, policies, and related action in meeting the needs of special need populations is needed.

Specifically, HCD requested further analysis and review of Program HE-2.2 (Shared Housing), Program HE-2.3 (ADU Monitoring), Program HE-2.5 (Multifamily Zoning), Program HE-4.1 (Special Needs), and Program HE-4.2 (Senior Housing) from the prior housing element to discuss whether these programs should be continued in the current housing element.

Additional information has been added to the review of programs from the previous 5th Cycle Housing Element to more fully describe how each program was addressed and if the program was effective. Additionally, the requested cumulative analysis has been provided to summarize the overall effectiveness of the previous Housing Element and the resulting new residential

development within the city. Where the past program goals were not fully achieved, the programs in the updated Housing Element have been revised to address those areas.

Section B – Housing Needs, Resources, and Constraints

1. Affirmatively Further Fair Housing
HCD requested that the Housing Element incorporate local data and knowledge and other relevant factors unique to the City related to historical assessment of fair housing. For example, the element could incorporate 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 historical data and fair housing analysis has been included in the revised Housing Element as noted by HCD. Based on this assessment, the Programs have been revised to prioritize addressing the identified contributing factor to fair housing issues.

2. Analysis of Population and Employment Trends and Projected Housing Needs for All Income Levels, Including Extremely Low-Income Households.

Additional background data and analysis is needed regarding the existing needs of extremely low-income households as well and trends and characteristics of housing needs for special housing needs.

This additional information has been included in the Housing Element, including the results of targeted outreach and interviews conducted by West Valley Community Services to very low income households in the region.

3. Inventory of Land Suitable for Residential Development.

The main focus of the comments in this section are regarding the projected number of ADUs that will be constructed during the planning period and used to meet the City’s RHNA requirements. As a result of a robust community outreach and Council-approved incentives, the city received written intentions from 225 property owners to construct an ADU in the next seven years. However, HCD is not receptive to projecting that 225 ADUs will be constructed in Monte Sereno as this far exceeds the actual average number of permits issued which is approximately 13 annually.

Additional comments in this section are related to including programs to update the municipal code requirements for Emergency Shelters, By-right Permanent Supportive Housing, ADUs, and Manufactured Housing to comply with current state laws.

Staff was able to meet with HCD staff to discuss these comments. While HCD acknowledges that the City is allowed under state law to meet RHNA using an ADU-based strategy, HCD has indicated it disagrees with the City’s assumptions about how many ADUs are realistic to develop:

Calculation of Past Trends: As noted in the prior review, given the reliance on ADUs, the element should utilize averages based on all years since 2018. In response, the element continues to assume 225 ADUs over the planning period. These assumptions far exceed trends since 2018 and even exceed more recent trends since 2020 (approximately 12 to 15 ADUs per year). The element must rescale ADU assumptions in line with recent trends. Please see HCD’s prior review for additional information.

At the meeting with HCD staff to discuss their written comments, HCD indicated they would accept a projection of 20 new ADUs a year over the planning period, based on information already provided by the City. This equates to 160 new dwelling units towards the required RHNA of 193 new units; however, best practice is that the Housing Element should plan for additional 10%-15% beyond the RHNA which is a minimum of 212 units.

As the projected number of ADUs that will be constructed over the eight-year planning period of this Housing Element will need to be reduced from previous projections, the site inventory has been modified to ensure Monte Sereno is planning for the assigned RHNA allocation as follows:
• Housing Progress to Date. Although the Housing Element has not yet been adopted, building permits for new housing units that have been issued since July 1, 2022 are counted towards this Housing Element cycle. Ten building permits have been issued for new ADUs since that date.
• Vacant Sites. Two vacant sites have been identified. Both sites are currently zoned for single-family use. A main house and an ADU can be expected to be constructed on each lot, which would result in four new housing units. • Junior Accessory Dwelling Units (JADU). Historically, the City did not count JADUs towards meeting the RHNA requirements. However, HCD has clarified that JADUs are considered new dwelling units and can be used to meet the RHNA requirements. Over the past five years, an average of one new JADU has been permitted each year. Based on this historical information, a total of eight JADUs can be projected to be constructed during this Housing Element cycle.
• SB9. As the City Council has committed to increasing the maximum allowed building size for SB9 projects (current maximum unit size is 800 square feet), several property owners have expressed interest in subdividing their property into two lots using the SB Urban Lot Split provisions. One application has been received and four written intentions have been received. A main house and an ADU can be expected to be constructed on each newly created lot (assuming the existing main houses would remain), which would result in ten new housing units.
• ADU Amnesty. In December 2022, the City Council approved an ordinance to allow property owners with an existing un-permitted ADU to be able to apply for building permits without paying additional code enforcement penalties or permitting fees that would be typically apply to un-permitted work. A program has also been included in the

draft Housing Element to reduce the building permit fees for such un-permitted ADUs by 50% to further encourage un-permitted ADU to obtain proper permits. Staff anticipates that 24 un-permitted ADUs will obtain building permits over the eight-year planning period of this Housing Element.

The following table summarizes these projected new housing units and the RHNA requirements.

Very LowIncome UnitsLow-Income
Units
ModerateIncome UnitsAbove
ModerateIncome Units
Total Units
2023–2031
RHNA
53 30 31 79 193
Housing
Progress to
Date
3 2 3 2 10
Vacant Sites 2 0 0 2 4
Accessory
Dwelling Units
48 48 48 16 160
Junior
Accessory
Dwelling Units
2 3 2 1 8
SB9 3 2 0 5 10
ADU Amnesty 7 7 8 2 24
Total 65 62 61 28 216
Buffer 23% 107% 97% -64% 12%

4. Analysis of Potential and Actual Governmental Constraints.

This section notes several additional information on the evaluation of existing standards that are a constraint to the development of housing including land use standards, permitting procedures, reasonable accommodation considerations, and group homes.

Additional analysis has been provided regarding the development standards noted and programs added to address the constraints identified.

Section C – Housing Programs
HCD comments in this section focus on specifying more commitments to meaningful action and committing to earlier completion dates for the housing programs. Following is a summary of the recommended program revisions to address these comments:

Program E (Review SB9 Regulations)
The program should commit to complying with state law and consider additional modifications that further enhance the state law.

SB9 is a state law that was effective on January 1, 2022. The law contains two main provisions for lots zoned for single family use; the first is allowing an additional dwelling unit on each lot and the second is to allow a two-lot subdivision for each lot. In January 2022, the City Council adopted an ordinance to incorporate the state SB9 law into the Municipal Code. In that ordinance, each new dwelling unit constructed under the SB9 regulations is limited to 800 square feet.

In addition to SB9, there are several other state laws that have been adopted to encourage the production of housing in the state which local governments are required to adopt and implement. One such law is the Housing Crisis Act of 2019. This law limits the ability of a city to amend its general plan, specific plans, or zoning code to a “less intensive land use” to those in effect on January 1, 2018. Such reductions in intensity include, but are not limited to, reductions to height, density, or floor area ratio, new or increased open space or lot size requirements, new or increased setback requirements, minimum frontage requirements, or maximum lot coverage limitations, or any other action that would individually or cumulatively reduce the site’s residential development capacity.

HCD staff believe that reducing the allowable building size of SB9 projects to a lesser area than what is otherwise allowed by a specific zoning district, is a reduction in intensity of land use that is a violation of the Housing Crisis Act of 2019, even though SB9 did not exist in 2018.

However, one benefit of removing the building size limit in the City’s SB9 regulations is that staff anticipates an increase in SB9 projects will result.

The City Council has committed to amending the Municipal Code to increase the maximum building size allowed for an SB9 project. This has been added as a program in the Housing Element with a commitment to adopt the Municipal Code changes by December 2023.

Program G (Develop Incentives)
HCD provided comment that the City’s program for development of affordable housing needs additional outreach to developers, and “given the lack of progress in the previous planning periods, this Program must specifically, annually reach out to affordable developers and apply for funding in addition to ‘at the request of the developer’.” HCD requested additional analysis of the City’s prior implementation.

This program has been revised to strengthen the language as noted and has been modified to address the needs of low-income and special needs populations as determined with the additional outreach to these populations as described above.

Program I (Accessory Dwelling Units)
HCD requested that the Program should clearly commit to removing restrictive requirements and specifically revise the ADU ordinance in compliance with ADU law. In addition, the Program now only commits to survey affordability and use but should survey affordability, use and production. Further, the Program only commits to take alternative action at a mid-cycle review of the housing element if construction goals or affordability are not met. Alternative action should be taken annually within six months of an annual review and should be triggered by production, affordability and availability or use.

The program has been updated as directed by HCD.

Program Q (Analyze Multifamily Housing)
The comments from HCD require that the City commit to making sites and appropriate zoning (e.g. 20 units per acre) available to allow for multifamily housing. Such development standards should encourage and facilitate multifamily housing.

Staff was able to meet with HCD staff to discuss this comment and the multifamily zoning requirement. HCD staff emphasized the need for multifamily zoned property within the city.

While the comment made reference to a density of 20 units per acre (current multifamily housing zoning at Montalvo Oaks is approximately 9 units per acre), HCD staff clarified in the meeting that if the RHNA is met without including any multifamily zoning, the 20 units per acre standards would not be applicable. For example, if the RHNA requirement is met with ADUs and potentially SB9 project commitments, the creation of multifamily zoning is still required, but the 20 units per acre standard would not apply.

The City Council has committed to rezoning two site within the City to allow for multifamily rental style units and this has been added to the program in the Housing Element. Such rezoning will need to be completed by January 31, 2024.

Section D – Quantified Objectives
The comment from HCD requires 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).

Each of the programs identified by HCD have been updated to provide an estimate 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 these comments were received, the city has been further worked with West Valley Community Services to reach out to the lower-income and special needs groups within the community. Additional outreach to lower-income and special needs populations has been made by West Valley Community Services and the Housing Element will be updated to include the information received and how the needs of lower-income and special needs populations will be met through various programs.

Additionally, a new appendix has been added to the Housing Element that details each public comment that has been received and how the comments were addressed in the revised document.

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.

The draft Housing Element that was reviewed HCD is available on the Housing Element website at www.AtHomeinMonteSereno.com.

Attachments:

1. HCD Comment Letter March 31, 2023

2. HCD 2nd Review Comments with Description of Revisions

3. Revised Housing Element (June 30, 2023)

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
March 31, 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) Adopted Housing Element Thank you for submitting the City of Monte Sereno’s (City) housing element that was adopted January 31, 2023 and received for review on February 1, 2023. Pursuant to Government Code section 65585, subdivision (h), the California Department of Housing and Community Development (HCD) is reporting the results of its review. In addition, HCD considered comments from South Bay YIMBY pursuant to Government Code section 65585, subdivision (c).

The adopted housing element addresses some statutory requirements described in HCD’s January 9, 2022 review; however, additional revisions are necessary to substantially 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.

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

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 (February 15, 2023), then any rezoning to make prior identified sites available or accommodate the regional housing needs allocation 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.

For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the Cityo 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.

HCD appreciates the commitment and cooperation provided throughout the housing element update and review. We are committed to assist the City in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Brandon Yung, of our staff, at [email protected].

Sincerely,
Paul McDougall
Senior Program Manager
Enclosure

City of Monte Sereno’s 6th Cycle Adopted Housing Element Page 1 March 31, 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).)
As noted in the prior review, the element should evaluate programs geared toward promoting housing variety and affordability, housing mobility and inclusion into and throughout Monte Sereno. Most notably, the element should acknowledge the depth and importance of facilitating multifamily housing within City boundaries and should evaluate the effectiveness of multifamily zoning and programs geared toward promoting housing variety, mobility, and affordability. In response, the element continues to report on permitted accessory dwelling units and notes an alternative project was approved instead of multifamily zoning. However, the element should clearly evaluate whether zoning was successful in promoting multifamily development, including affordability and if not, examine the lack of effectiveness to formulate an appropriate programmatic response. In addition, the element should analyze the progress and effectiveness of programs geared toward promoting housing variety (e.g., multifamily), mobility and affordability, as follows:
• Program HE-2.2 (Shared Housing): The element must still discuss whether the City proactively contacted agencies and if not, incorporate the lack of outreach into new programs.
• 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. In response, the element indicates ADUs were constructed but should also discuss whether ADUs were permitted for all income groups and if not, discuss why multifamily zoning, including appropriate densities were not established. Then, the element should incorporate lessons learned in new programs. • Program HE-2.5 (Multifamily Zoning): As noted above, the element should evaluate the lack of effectiveness in establishing multifamily, including promoting affordability through outreach to developers of housing affordable to lower income and special need households.

City of Monte Sereno’s 6th Cycle Adopted Housing Element Page 2 March 31, 2023
• Program HE-4.1 (Special Needs): The element still must discuss attempts, success or effectiveness of outreach with non-profit developers and revise new programs as appropriate.
• Program HE-4.2 (Senior Housing): The element should evaluate the program’s appropriateness and determine whether it should be modified or continued into the current planning period.

In addition, the element still 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).) Local Data and Knowledge and Other Relevant Factors: The element now discusses past redlining in the broader Santa Clara County but should incorporate local data and knowledge and other relevant factors unique to the City. For example, the element could incorporate 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: Based upon a complete analysis, the element must re-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).)
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: The element now identifies the projected housing need for ELI households but must still analyze the existing needs of these households. Please see HCD’s prior review for additional information.

City of Monte Sereno’s 6th Cycle Adopted Housing Element Page 3 March 31, 2023
Special Needs: While the element now includes some brief discussion of potential solutions to address special housing needs, it should still discuss trends and characteristics of housing needs to better formulate strategies and modify programs as appropriate.

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).)4
Adequate Sites and Accessory Dwelling Units (ADU): As noted in the prior review, the element may demonstrate adequate sites to accommodate the regional housing need allocation (RHNA) entirely with ADUs, however, given the reliance on one strategy, it must include robust and commensurate analysis or utilize alternative strategies. The element still proposes to accommodate essentially the entire RHNA for all income groups with ADUs and as a result, still must include robust and commensurate analysis, as follows:
• Calculation of Past Trends: As noted in the prior review, given the reliance on ADUs, the element should utilize averages based on all years since 2018. In response, the element continues to assume 225 ADUs over the planning period.

These assumptions far exceed trends since 2018 and even exceed more recent trends since 2020 (approximately 12 to 15 ADUs per year). The element must rescale ADU assumptions in line with recent trends. Please see HCD’s prior review for additional information.
• Affordability: The element generally was not revised to address this finding. In addition, the element should address to comments submitted on this and prior review. Please see HCD’s prior review for additional information. • Other Relevant Factors: The element now includes information on the availability of ADUs for rent; stating that 93 percent of past ADUs were made available for rent. As a result, the element should incorporate this information into ADU assumptions for the 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.

Electronic Sites Inventory: Although the City has submitted electronic sites inventory as described in the prior review, if any changes occur, the City should submit revisions as part of any future re-adoption or submittal. Please see HCD’s housing element

City of Monte Sereno’s 6th Cycle Adopted Housing Element Page 4 March 31, 2023
webpage at https://www.hcd.ca.gov/planning-and-community-development/housingelements for additional information.

Zoning for a Variety of Housing Types:
• Multifamily: While the element was updated to include a program to “analyze” opportunities for multifamily zoning, it still must identify and analyze significant and realistic opportunities for multifamily development in the planning period as part of this update. The identification and analysis should address 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 make sites available with appropriate zoning, allowable densities (e.g., 20 units per acre) and development standards to encourage and facilitate multifamily development at maximum allowable densities.
• Emergency Shelters: HCD’s prior review found the element should clarify that byright is without discretionary action and add a discussion of acreage, parcel sizes. reuse and redevelopment opportunities and proximity to transportation and services as well as evaluate development standards. In response, the element now states only one site is available; a school site. The element must still clarify whether emergency shelters are permitted without discretionary action and should demonstrate how the one school site could accommodate at least one emergency shelter or identify other zones and capacity. In addition, the element must still analyze development standards, including parking requirements and add or modify programs to address any constraints.

Please be aware Chapter 654, Statues of 2022 (AB 2339), adds specificity on how cities and counties plan for emergency shelters and ensure sufficient and suitable capacity. Future submittals of the housing element may need to address these statutory requirements. For additional information and timing requirements, please see HCD’s memo at
https://www.hcd.ca.gov/sites/default/files/docs/planning-and-community/ab2339- notice.pdf.
• By-right Permanent Supportive Housing: The element now includes a Program S (Allow Single Room Occupancy) to permit supportive housing by-right in the Public zoning district. However, 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. Future efforts to establish multifamily zoning should comply with these requirements.
• Accessory Dwelling Units: Based on a cursory review, the City’s ADU ordinance does not comply with ADU law. The element must include a program to amend the ADU ordinance and comply with ADU law. HCD will send additional information upon a complete review of the ordinance under separate cover.

City of Monte Sereno’s 6th Cycle Adopted Housing Element Page 5 March 31, 2023
• Manufactured Housing: The element now clarifies that manufactured homes are permitted in the same manner as conventional homes and a specific standard will be added to confirm manufactured homes will be reviewed consistent with state law when the City updates its objective design standards. The element should modify programs to reflect this confirmation in the update of objective design standards.

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: HCD’s prior review generally found the element must evaluate all development standards and land use controls, impacts of a predominant large lot land use patter and compliance with Government Code sections 65852.21 and 66411.7 (SB 9). However, the element must still be revised, as follows:
• Development Standards and Land Use Controls: The element was not revised to address this requirement. Please see HCD’s prior review for additional information.
• Lack of a Variety of Lot Sizes: The element now notes that a majority of the City is large lots over two acres and as a result, should include programs to provide a variety of lot sizes – beyond complying with State law. Programs should be specific and not limited to reviewing options.
• Government Code sections 65852.21 and 66411.7 (SB 9): The element now includes Program E (SB 9 Regulations) to review regulations. However, the Program should specifically commit to amend zoning and comply with state law.

Processing and Permit Procedures: The element generally was not revised to address HCD’s prior finding. Please see HCD’s prior review for additional information.

Streamlining Provisions: HCD’s prior review found 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. In response, the element now concludes the City is in compliance with RHNA and is not subject to SB 35. However, these conditions may change and the element should add a program with specific commitment to establish a written procedure to comply with Government Code section 65913.4 by a specified date.

Constraints on Housing for Persons with Disabilities: The element must still include an analysis of potential constraints on housing for persons with disabilities, as follows:

City of Monte Sereno’s 6th Cycle Adopted Housing Element Page 6 March 31, 2023
• Reasonable Accommodation: The element indicates the City has a reasonable accommodation procedure that involves a “hearing” (p. C-10). The element should clarify if this is a public hearing and if so, evaluate the impacts as a potential constraint on housing for persons with disabilities. In addition, the element now lists several decision-making criteria but should also evaluate some of those criteria as constraints on housing for persons with disabilities. For example, decision-making criteria such as demonstrating a special need, benefit, compatibility with surrounding uses, alternative accommodations and that a household with a disability is truly a household appear to be a constraint. The element should evaluate these decision-making criteria and add or modify programs as appropriate.
• Group Homes for Seven or More Persons: The element now explains group homes for seven or more persons are allowed in all residential zones, however, also mentions these uses are limited to licensed homes. As a result, the element should include a program to amend zoning and remove the licensing requirement.

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 (Review SB9 Regulations): As noted in the prior review, the Program should go beyond reviewing and amending as needed. The Program should at least clearly commit to comply with law and could consider additional modification that further enhance the state law.
• Program G (Develop Incentives): The updated Program does not respond to the previous finding. Especially given the lack of progress in the previous planning periods, this Program must specifically, annually reach out to affordable developers and apply for funding in addition to “at the request of the developer”.

Additionally, the Program should include quantified objectives and should be further modified based on the outcomes of complete analyses as noted in Findings A and B. Please see HCD’s prior review for additional information.

City of Monte Sereno’s 6th Cycle Adopted Housing Element Page 7 March 31, 2023
• Program I (Accessory Dwelling Units): The updated Program does not respond to the previous finding. The Program should clearly commit to removing restrictive requirements and specifically revise the ADU ordinance in compliance with ADU law. In addition, the Program now only commits to survey affordability and use but should survey affordability, use and production. Further, the Program only commits to take alternative action at a mid-cycle review of the housing element if construction goals or affordability are not met. Alternative action should be taken annually within six months of an annual review and should be triggered by production, affordability and availability or use.

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 now includes Program Q (Analyze Multifamily Housing) to analyze sites and analyze the potential application of SB 10. However, this Program generally does not commit to any meaningful outcomes in the planning period, especially when considering the past lack of effectiveness in promoting multifamily and affordability. As noted in the prior review, this Program should be modified based on the outcomes of a complete analysis as described throughout this review. The Program must at least commit to make sites and appropriate zoning (e.g., 20 units per acre) available with development standards to encourage and facilitate multifamily development at maximum densities and may need to address specific requirements related to a shortfall of adequate sites, including rezoning sizes to meet by-right requirements.

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 was not revised to address this finding. In addition, programs must be revised based on the outcomes of a complete analysis as described in Findings A and B.

City of Monte Sereno’s 6th Cycle Adopted Housing Element Page 8 March 31, 2023

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, 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.

6. 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 revision to complete an assessment of fair housing. Depending upon the results of a complete analysis, the City must 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, placebased strategies for community revitalization and displacement protection.

In addition, promoting housing mobility removes barriers to higher opportunity areas and strategically enhances access to housing choices and affordability. Among other factors, the City is entirely the highest resource category in access opportunity, wholly a concentrated area of affluence and predominantly consists of households with the highest median income, a stark contrast to the rest of the region. As a result, the element should include a significant and robust suite of actions (not limited to the RHNA) to promote housing mobility and increasing housing choices and affordability throughout the City.

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).)

City of Monte Sereno’s 6th Cycle Adopted Housing Element Page 9 March 31, 2023
The element does not respond to the previous finding. 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 U (Infrastructure Capital Improvements), V (Energy Conservation), W (Water Conservation) and X (Fair Housing Enforcement).

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).) HCD’s prior review found the City must employ additional methods for public outreach efforts, particularly including lower-income and special needs households. In response, the element now describes how the City partnered with the West Valley Community Services (WVSC) but should also provide discussion about the comments and input and how that input was incorporated into the housing element. In addition, the City should continue to employ a variety of methods and target outreach to additional organizations that represent lower-income and special needs households. Finally, HCD received comments with many meaningful suggestions related to ADU production assumptions, ADU surveys, segregation and integration, and other issues related to zoning and affirmatively furthering fair housing.

HCD encourages the City to consider these comments.

Number Section HCD Second Review Comment HCD First Review Comment Second Review Response/Revision Made to Housing Element Second Review
Location of
Revision in
Housing
Element
A Review and
Revision -
Previous
Housing
Element Goals
and Policies
As noted in the prior review, the element should evaluate programs geared toward promoting housing variety and affordability, housing mobility and inclusion into and throughout Monte Sereno. Most notably, the element should acknowledge the depth and importance of facilitating multifamily housing within City boundaries and should evaluate the effectiveness of multifamily zoning and programs geared toward promoting housing variety, mobility, and affordability. In response, the element continues to report on permitted accessory dwelling units and notes an alternative project was approved instead of multifamily zoning. However, the element should clearly evaluate whether zoning was successful in promoting multifamily development, including affordability and if not, examine the lack of effectiveness to formulate an appropriate programmatic response. In addition, the element should analyze the progress and effectiveness of programs geared toward promoting housing variety (e.g., multifamily), mobility and affordability, as follows:
• Program HE-2.2 (Shared Housing): The element must still discuss whether the City proactively contacted agencies and if not, incorporate the lack of outreach into new programs. • 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. In response, the element indicates ADUs were constructed but should also discuss whether ADUs were permitted for all income groups and if not, discuss why multifamily zoning, including appropriate densities were not established. Then, the element should incorporate lessons learned in new programs.

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:

Program HE-2.2 (Shared Housing). Additional information was added to explain that due to staff turnover, it cannot be determined when the City proactively reached out to various affordable housing developers. To ensure the annual proactive outreach occurs in the future, Programs G (Development Incentives ), J (Special Needs Housing), and L (Shared Housing Options) have been updated to state that the proactive annual outreach will be reported on each year in the Annual Progress Report.

Program HE-2.3 (ADU Monitoring). Additional information has been added to the reporting of this program to clarify that the RHNA requirements for Very Low Income and Low Income levels were exceeded, Moderate Income levels were not met, and the overall Above Moderate Income level was exceeded (although not through ADUs alone).

Program HE-2.5 (Multifamily Zoning). Additional information was added to clarify the multi-family housing project that was constructed includes one 4- unit building, one 3-unit building, four 2-unit buildings, and 21 detached houses.

To ensure the annual proactive outreach occurs in the future, Program G (Development Incentives) has been updated to state that the proactive annual outreach will be reported on each year in the Annual Progress Report.

Additionally, Program Q (Implement Multifamily Housing Rezoning)has been updated to specify that a minimum of two sites will be identified and zoned for multi-family housing by January 2024.

Appendix F and
Chapter 2.0
• Program HE-2.5 (Multifamily Zoning): As noted above, the element should evaluate the lack of effectiveness in establishing multifamily, including promoting affordability through outreach to developers of housing affordable to lower income and special need households.
• Program HE-4.1 (Special Needs): The element still must discuss attempts, success or effectiveness of outreach with nonprofit developers and revise new programs as appropriate. • Program HE-4.2 (Senior Housing): The element should evaluate the program’s appropriateness and determine whether it should be modified or continued into the current planning period. • 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.

Program HE 4.1 (Special Needs). Additional information was added to explain that due to staff turnover, it cannot be determined when the City proactively reached out to various non-profit housing developers. To ensure the annual proactive outreach occurs in the future, Programs G (Development Incentives ), J (Special Needs Housing), and L (Shared Housing Options) have been updated to state that the proactive annual outreach will be reported on each year in the Annual Progress Report.

Program HE4.2 (Senior Housing). Information has been added to describe how many senior members of the community have expressed a strong desire to agein-place on their property and how ADUs have allowed that. The ADUs have been a successful in meeting the changing needs of seniors and this program should be continued. Programs I (Accessory Dwelling Units) and K (Seniors and Accessory Dwelling Units) is included to continue to promote ADUs as housing options for seniors and to remove any constraints, such as considering an increase in the maximum size of an ADU to better accommodate the needs of seniors down-sizing.

In addition, the element still 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.

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.

A new section in Appendix E has been added, E.5 Summary - Overall Effectiveness of Programs, that provides an overall summary and analysis of the effectiveness of the 5th Cycle Housing element programs.

Department of Housing and Community Development
Comments on Draft Housing Element Dated March 31, 2023

Number Section HCD Second Review Comment HCD First Review Comment Second Review Response/Revision Made to Housing Element Second Review
Location of
Revision in
Housing
Element
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 Local Data and Knowledge and Other Relevant Factors: The element now discusses past redlining in the broader Santa Clara County but should incorporate local data and knowledge and other relevant factors unique to the City. For example, the element could incorporate 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.

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
Section 1.4 Affirmatively Further Fair Housing in Chapter 1 has been updated to provide additional information specific to the incorporation of Monte Sereno as well as historical land use patterns that impacted socio-economic patterns.

Chapter 1
Contributing Factors: Based upon a complete analysis, the element must re-assess and prioritize contributing factors to fair housing issues and add or modify programs as appropriate.

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.

The section titled "Primary Findings, Contributing Factors, and Fair Housing Actions" in Appendix A has been re-organized and revised to provide a more thorough analysis and prioritization of the fair housing issues facing Monte Sereno, contributing factors for each issue, and the new programs designed to address the issue.

Appendix A
B.2 Housing
Needs,
Resources, and
Constraints
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).)
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: The element now identifies the projected housing need for ELI households but must still analyze the existing needs of these households. Please see HCD’s prior review for additional information.

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).

Section B.3 of Appendix B has been updated to provide more data on special needs populations and ELI households. Additional analysis was provided based on additional outreach and interviews conducted by West Valley Community Services on behalf of the City. Additionally, Program L.2 Facilitate and Development of Affordable Housing for Extremely Low-Income Housing Residents was added to specifically address the needs of ELI households.

Appendix B,
Chapter 2
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 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.

Special Needs: While the element now includes some brief discussion of potential solutions to address special housing needs, it should still discuss trends and characteristics of housing needs to better formulate strategies and modify programs as appropriate.

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.

Section B.3 of Appendix B has been updated to provide more data on special needs populations including ELI households, female-headed households, seniors, people with disabilities, unhoused people, farmworkers, and nonEnglish speakers. Analysis of these populations as well as a summary conclusion has been added. The summary conclusion references the specific programs that are designed to address the needs of these populations.

Appendix B

Number Section HCD Second Review Comment HCD First Review Comment Second Review Response/Revision Made to Housing Element Second Review
Location of
Revision in
Housing
Element
B.3 Housing
Needs,
Resources, and
Constraints
Adequate Sites and Accessory Dwelling Units (ADU): As noted in the prior review, the element may demonstrate adequate sites to accommodate the regional housing need allocation (RHNA) entirely with ADUs, however, given the reliance on one strategy, it must include robust and commensurate analysis or utilize alternative strategies. The element still proposes to accommodate essentially the entire RHNA for all income groups with ADUs and as a result, still must include robust and commensurate analysis, as follows:
• Calculation of Past Trends: As noted in the prior review, given the reliance on ADUs, the element should utilize averages based on all years since 2018. In response, the element continues to assume 225 ADUs over the planning period. These assumptions far exceed trends since 2018 and even exceed more recent trends since 2020 (approximately 12 to 15 ADUs per year). The element must rescale ADU assumptions in line with recent trends. Please see HCD’s prior review for additional information.
• Affordability: The element generally was not revised to address this finding. In addition, the element should address to comments submitted on this and prior review. Please see HCD’s prior review for additional information. • Other Relevant Factors: The element now includes information on the availability of ADUs for rent; stating that 93 percent of past ADUs were made available for rent. As a result, the element should incorporate this information into ADU assumptions for the 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/housing-elements/building-blocks.

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.

Calculation of Past Trends: In discussion with HCD staff, the number of new ADUs projected to be constructed over the course of this Housing Element cycle has been adjusted to 160 (20 new units annually).

Affordability: Information has been added to describe the City's annual ADU survey that is conducted to determine the use and affordability of ADUs constructed. Also, projections based on ABAG standards are also described.

Other Relevant Factors: As noted in HCD's review letter, 93% of ADUs in Monte Sereno are used as a dwelling unit according the results of the annual survey conducted by the City. This would result a project 209 new ADUs being used as a dwelling unit (based on the 225 property owners who have provided a written intention to construct and ADU) over the Planning Period. However, in discussion with HCD staff, it was agreed that 160 ADUs can be projected over the Planning Period. The RHNA projections were adjusted to include 160 ADUs.

Chapter 4
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: Although the City has submitted electronic sites inventory as described in the prior review, if any changes occur, the City should submit revisions as part of any future re-adoption or submittal. Please see HCD’s housing element webpage at https://www.hcd.ca.gov/planning-and-community-development/housing-elements for additional information.

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.

Multifamily: While the element was updated to include a program to “analyze” opportunities for multifamily zoning, it still must identify and analyze significant and realistic opportunities for multifamily development in the planning period as part of this update. The identification and analysis should address 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 make sites available with appropriate zoning, allowable densities (e.g., 20 units per acre) and development standards to encourage and facilitate multifamily development at maximum allowable densities.

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.

As discussed with HCD staff at the April 6, 2023 meeting, new multifamily units are not required in order for Monte Sereno to meet the RHNA requirements.

Therefore, the default density of 20 units per acre is not required for multifamily rental housing. However, in accordance with Government Code Section 66583(c)(1), zoning for multifamily housing is still required to be provided in accordance with AFFH standards for providing a variety of housing types.

Program Q has been revised to commit to rezoning a minimum of two sites in Monte Sereno no later than January 31, 2024. The sites that will be rezoned will include development standards that require multifamily-style dwelling units including multiple separate dwelling units within one building and separate dwelling units on each story.

Chapter 2

Number Section HCD Second Review Comment HCD First Review Comment Second Review Response/Revision Made to Housing Element Second Review
Location of
Revision in
Housing
Element
• Emergency Shelters: HCD’s prior review found the element should clarify that by-right is without discretionary action and add a discussion of acreage, parcel sizes. reuse and redevelopment opportunities and proximity to transportation and services as well as evaluate development standards. In response, the element now states only one site is available; a school site. The element must still clarify whether emergency shelters are permitted without discretionary action and should demonstrate how the one school site could accommodate at least one emergency shelter or identify other zones and capacity. In addition, the element must still analyze development standards, including parking requirements and add or modify programs to address any constraints.

Please be aware Chapter 654, Statues of 2022 (AB 2339), adds specificity on how cities and counties plan for emergency shelters and ensure sufficient and suitable capacity. Future submittals of the housing element may need to address these statutory requirements. For additional information and timing requirements, please see HCD’s memo at https://www.

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.

Additional analysis in provided in Appendix C which clarifies Emergency Shelters are allowed in the "Public" zoning district by-right and without discretionary review. Additional information has also been added to this section to demonstrate the locations where emergency shelters are allowed byright are adequate to accommodate one shelter.

Program R (Participate in Regional Homelessness Programs) was also updated to include a review of zoning code requirements for Emergency Shelters and determine if the maximum number of beds allowed should be increased.

Appendix C,
Chapter 2
• By-right Permanent Supportive Housing: The element now includes a Program S (Allow Single Room Occupancy) to permit supportive housing by-right in the Public zoning district. However, 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. Future efforts to establish multifamily zoning should comply with these requirements.

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.

Program S (Allow Single Room Occupancy Units in all Zoning Districts) has been revised to specify that any future multifamily, mixed use, or other nonresidential zoning district and allows residential uses, will also allow SROs, transitional, and permanent supportive housing by-right with no discretionary review.

Chapter 2
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: Based on a cursory review, the City’s ADU ordinance does not comply with ADU law. The element must include a program to amend the ADU ordinance and comply with ADU law. HCD will send additional information upon a complete review of the ordinance under separate cover.

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.

Program I (Accessory Dwelling Units) has been updated to specify that the ADU ordinance will be updated to comply with State law by December 2023. City staff has met with HCD staff to review the items that need to be revised.

Chapter 2
• Manufactured Housing: The element now clarifies that manufactured homes are permitted in the same manner as conventional homes and a specific standard will be added to confirm manufactured homes will be reviewed consistent with state law when the City updates its objective design standards. The element should modify programs to reflect this confirmation in the update of objective design standards.

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.

As previously noted, manufactured homes are permitted in the same manner as conventional homes. Program B has been updated to commit to expressly stating this in the City's Objective Design Standards when that document is updated.

Chapter 2

Number Section HCD Second Review Comment HCD First Review Comment Second Review Response/Revision Made to Housing Element Second Review
Location of
Revision in
Housing
Element
B.4 Housing
Needs,
Resources, and
Constraints
Land Use Controls: HCD’s prior review generally found the element must evaluate all development standards and land use controls, impacts of a predominant large lot land use patter and compliance with Government Code sections 65852.21 and 66411.7 (SB 9). However, the element must still be revised, as follows:
• Development Standards and Land Use Controls: The element was not revised to address this requirement. Please see HCD’s prior review for additional information.
• Lack of a Variety of Lot Sizes: The element now notes that a majority of the City is large lots over two acres and as a result, should include programs to provide a variety of lot sizes – beyond complying with State law. Programs should be specific and not limited to reviewing options.
• Government Code sections 65852.21 and 66411.7 (SB 9): The element now includes Program E (SB 9 Regulations) to review regulations. However, the Program should specifically commit to amend zoning and comply with state law.

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.

Development Standards and Land Use Controls: Section C.2 Governmental Constraints of Appendix C includes data about permitting fees, permit processing timelines, and parking requirements in Monte Sereno as well as compared with other jurisdictions in Santa Clara County. These requirements in Monte Sereno are not constraints on housing development as compared with other local jurisdictions. Multifamily density and intensity constraints will be addressed through programs Program C (Facilitate Parcel Maps), Program D (Flag Lots), Program E (Review SB9 Regulations), and Program Q (Implement Multifamily Housing).

Lack of a Variety of Lot Sizes: Section C.2 Governmental Constraints on Appendix C has been updated to specify that Program I (Accessory Dwelling Units), Program C (Facilitate Parcel Maps), Program D (Flag Lots), Program E (Review SB9 Regulations), and Program Q (Implement Multifamily Housing) will all allow for a variety of lot sizes in Monte Sereno that may not be currently allowed.

Government Code sections 6582.21 and 66411.7 (SB9): Program E (Review SB9 Regulations) has been updated to commit to revising the current SB9 regulations to remove the 800 square foot building size maximum and to comply with State laws. The Municipal Code revisions will be completed by December 2023.

Appendix C
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 Processing and Permit Procedures: The element generally was not revised to address HCD’s prior finding. Please see HCD’s prior review for additional information.

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 is provided in Appendix C, specifically Table C-5 shows Monte Sereno permit processing timelines compared with other Santa Clara County jurisdictions. The permit processing timelines in Monte Sereno are among the fastest in the County.

Municipal Code required findings for Site Development Permits have been added to Appendix C.

Planning and building permits are included in Appendix C along with table C-3 which provides the Monte Sereno fees. Also, Table C-4 provides a comparison of fees in Monte Sereno fees with those of other Santa Clara County jurisdictions. The development fees in Monte Sereno are among the lowest in the County.

A summary of governmental constraints is provided in Appendix C.

Additionally, Program A (Improve Permit Processing Timelines) is included in the Housing Element to continuously review and develop additional streamlining provisions for permitting review.

Appendix C
Streamlining Provisions: HCD’s prior review found 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.

In response, the element now concludes the City is in compliance with RHNA and is not subject to SB 35. However, these conditions may change and the element should add a program with specific commitment to establish a written procedure to comply with Government Code section 65913.4 by a specified date.

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.

Appendix C has been updated to clarify that the City does not currently has streamlining procedures pursuant to Government Code section 65913.4 (SB35) as the City is not currently subject to these streamlining provisions. However, Program, Q.2 (SB35 Written Procedures) has been added to commit to developing such procedures by June 2024.

Appendix C,
Chapter 2

Number Section HCD Second Review Comment HCD First Review Comment Second Review Response/Revision Made to Housing Element Second Review
Location of
Revision in
Housing
Element
Constraints on Housing for Persons with Disabilities: The element must still 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 that involves a “hearing” (p. C-10). The element should clarify if this is a public hearing and if so, evaluate the impacts as a potential constraint on housing for persons with disabilities. In addition, the element now lists several decision-making criteria but should also evaluate some of those criteria as constraints on housing for persons with disabilities. For example, decisionmaking criteria such as demonstrating a special need, benefit, compatibility with surrounding uses, alternative accommodations and that a household with a disability is truly a household appear to be a constraint. The element should evaluate these decision-making criteria and add or modify programs as appropriate. • Group Homes for Seven or More Persons: The element now explains group homes for seven or more persons are allowed in all residential zones, however, also mentions these uses are limited to licensed homes. As a result, the element should include a program to amend zoning and remove the licensing requirement.

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.

Reasonable Accommodation: The Constraints for People with Disabilities section of Appendix C was updated to state the potential constraints of the public hearing requirement as well as factors A, B, C, and F in the Municipal Code. Program N (Reasonable Accommodation) has been revised to revise the Municipal Code to remove these items from the Reasonable Accommodation request.

Group Homes for Seven or More People: Program N.2 (Group Homes for Seven or More Persons) has been added to commit to updating the Municipal Code definition of "Residential Care Home" to remove the state-license requirement.

Appendix C,
Chapter 2
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 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.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”). Examples of programs to be revised include:
• Program E (Review SB9 Regulations): As noted in the prior review, the Program should go beyond reviewing and amending as needed. The Program should at least clearly commit to comply with law and could consider additional modification that further enhance the state law.
• Program G (Develop Incentives): The updated Program does not respond to the previous finding. Especially given the lack of progress in the previous planning periods, this Program must specifically, annually reach out to affordable developers and apply for funding in addition to “at the request of the developer”. Additionally, the Program should include quantified objectives and should be further modified based on the outcomes of complete analyses as noted in Findings A and B. Please see HCD’s prior review for additional information. • Program I (Accessory Dwelling Units): The updated Program does not respond to the previous finding. The Program should clearly commit to removing restrictive requirements and specifically revise the ADU ordinance in compliance with ADU law. In addition, the Program now only commits to survey affordability and use but should survey affordability, use and production. Further, the Program only commits to take alternative action at a mid-cycle review of the housing element if construction goals or affordability are not met. Alternative action should be taken annually within six months of an annual review and should be triggered by production, affordability and availability or use.

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”)
Program E (Review SB9 Regulations): This program has been updated to commit to updating the SB9 regulations to comply with all state laws and to remove the current 800 square foot building size limit. The program also commits to exploring additional modifications that further enhance the state law.

Program G (Development Incentives): This program has been updated to commit to reporting annual developer outreach in the Annual Progress Report to ensure this happens as scheduled. Additionally, the Quantified Objective for this program has been updated to state the 10 new housing units dedicated to low income or special needs populations is the objective of this program.

Program I (Accessory Dwelling Units): This program has been updated to commit to updating the Monte Sereno ADU ordinance by December 2023 to comply with state laws; commits to annually surveying affordability, use, and production; and commits to annual review if the construction goals are being met and take alterative action within six months if not being met.

Chapter 2

Number Section HCD Second Review Comment HCD First Review Comment Second Review Response/Revision Made to Housing Element Second Review
Location of
Revision in
Housing
Element
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 now includes Program Q (Analyze Multifamily Housing) to analyze sites and analyze the potential application of SB 10. However, this Program generally does not commit to any meaningful outcomes in the planning period, especially when considering the past lack of effectiveness in promoting multifamily and affordability. As noted in the prior review, this Program should be modified based on the outcomes of a complete analysis as described throughout this review. The Program must at least commit to make sites and appropriate zoning (e.g., 20 units per acre) available with development standards to encourage and facilitate multifamily development at maximum densities and may need to address specific requirements related to a shortfall of adequate sites, including rezoning sizes to meet by-right requirements.

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 discussed with HCD staff at the April 6, 2023 meeting, new multifamily units are not required in order for Monte Sereno to meet the RHNA requirements.

Therefore, the default density of 20 units per acre is not required for multifamily rental housing. However, in accordance with Government Code Section 66583(c)(1), zoning for multifamily housing is still required to be provided in accordance with AFFH standards for providing a variety of housing types.

Program Q has been updated to commit to rezoning two sites within Monte Sereno to multifamily by January 2024. SB10 will be considered to crate these multifamily zoned sites so that densities and development standards can be set to ensure that multifamily units are constructed.

Chapter 2
C.3 Housing
Programs
The element was not revised to address this finding. In addition, programs must be revised based on the outcomes of a complete analysis as described in Findings A and B.

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.

Program L.2 (Facilitate the Development of Affordable Housing for Extremely Low-Income Housing Residents) has been added. This program commits to encouraging such development through annual targeted outreach to developers, providing in-kind technical assistance, fee deferrals, expeditated/priority permit processing, and supporting grants funding efforts.

Chapter 2
C.4 Housing
Programs
As noted in Findings B4, 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 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.

Section C.2 Governmental Constraints on Appendix C has been updated to provide more information on potential governmental constraints. Additionally, Program I (Accessory Dwelling Units), Program C (Facilitate Parcel Maps), Program D (Flag Lots), Program E (Review SB9 Regulations), and Program Q (Implement Multifamily Housing) will all allow for a variety of lot sizes and densities in Monte Sereno that may not be currently allowed.

Appendix C,
Chapter 2

Number Section HCD Second Review Comment HCD First Review Comment Second Review Response/Revision Made to Housing Element Second Review
Location of
Revision in
Housing
Element
C.6 Housing
Programs
As noted in Finding B1, the element requires revision to complete an assessment of fair housing. Depending upon the results of a complete analysis, the City must 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.

In addition, promoting housing mobility removes barriers to higher opportunity areas and strategically enhances access to housing choices and affordability. Among other factors, the City is entirely the highest resource category in access opportunity, wholly a concentrated area of affluence and predominantly consists of households with the highest median income, a stark contrast to the rest of the region. As a result, the element should include a significant and robust suite of actions (not limited to the RHNA) to promote housing mobility and increasing housing choices and affordability throughout the City.

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.

The section titled "Primary Findings, Contributing Factors, and Fair Housing Actions" in Appendix A has been re-organized and revised to provide a more thorough analysis and prioritization of the fair housing issues facing Monte Sereno, contributing factors for each issue, and the new programs designed to address the issue. Additionally, Chapter 2 has been updated to include comments received from the additional ELI outreach that was conducted and details the Programs that have been added/revised to address each concern raised.

Most of the Programs are designed to remove housing mobility barriers including the following programs that will provide a wider range of lots sizes and densities than are currently allowed: Program I (Accessory Dwelling Units), Program C (Facilitate Parcel Maps), Program D (Flag Lots), Program E (Review SB9 Regulations), and Program Q (Implement Multifamily Housing). The enhanced Programs G (development Incentives), Program J (Special Needs Households), Program K (Seniors and Accessory Dwelling Units), Program L (Shared Housing Options), Program L.2 (Facilitate the Development of Affordable Housing for Extremely Low-Income Housing Residents), Program N (Group Homes for Seven or More Persons), Program O (Fair Housing), and Program R (Participate in Regional Homelessness Programs) commit to providing additional housing options and resources for special needs populations. And Program U (Infrastructure and Capital Improvements) commits to supporting regional efforts to improve public transportation in Monte Sereno.

Appendix A
D Quantified
Outreach
The element does not respond to the previous finding. 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 U (Infrastructure Capital Improvements), V (Energy Conservation), W (Water Conservation) and X (Fair Housing Enforcement).

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).

Quantified Objectives for Rehabilitation has been added to the new section 2.3 Summary of Quantified Objectives in Chapter 2. Program U (Infrastructure Capital Improvements) has a quantified objective of maintaining the PCI or 70.

Program, V (Energy Conservation) has been updated to include 193 new housing units with energy conservation features that reduce energy usage by an average of 10% as the Quantified Objective. The Quantified Objective for Program, W (Water Conservation) has been updated to include 193 new housing units with water conservation features that reduce water usage by an average of 10%.Program X (Fair Housing Enforcement) has been updated to include a Quantified Objective of addressing three fair housing complaints over the planning period.

Chapter 2
E Public
Participation
HCD’s prior review found the City must employ additional methods for public outreach efforts, particularly including lowerincome and special needs households. In response, the element now describes how the City partnered with the West Valley Community Services (WVSC) but should also provide discussion about the comments and input and how that input was incorporated into the housing element. In addition, the City should continue to employ a variety of methods and target outreach to additional organizations that represent lower-income and special needs households. Finally, HCD received comments with many meaningful suggestions related to ADU production assumptions, ADU surveys, segregation and integration, and other issues related to zoning and affirmatively furthering fair housing. HCD encourages the City to consider these comments.

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.

Appendix G has been added which includes a complete listing of all public comments received and notes how each has been addressed.

Table of Contents

1.0 INTRODUCTION ..........................................................................................................1-1

1.1 Introduction ............................................................................................................................1-1

1.2 California’s Housing Crisis....................................................................................................1-1

1.3 Regional Housing Needs Allocation....................................................................................1-2

1.4 Affirmatively Furthering Fair Housing ...............................................................................1-3

1.5 Overview of Planning Efforts............................................................................................1-10

1.6 Public Participation ..............................................................................................................1-12 Tables
Table 1-1 Regional Housing Needs Allocation....................................................................... 1-3

Chapter 1.0 Introduction 1-1 EMC Planning Group
Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023

1.0 Introduction

1.1 Introduction
This 2023-2031 Housing Element represents the City of Monte Sereno's intent to plan for the housing needs of the Monte Sereno community while meeting the State's housing goals as set forth in Article 10.6 of the California Government Code. The California State Legislature has identified the attainment of a decent home and a suitable living environment for every Californian as the State's major housing goal. The Monte Sereno Housing Element represents a sincere and creative effort to meet local and regional housing needs within the constraints of a fully established built-out community, limited land availability and extraordinarily high costs of land and housing.

Pursuant to State law, the Housing Element must be updated periodically according to statutory deadlines. This 6th Cycle Housing Element covers the planning period 2023 through 2031 and replaces the City's 5th Cycle Housing Element that covered the period 2015 through 2023.

Per State Housing Element law, the document must be periodically updated to:
 Outline the community’s housing production objectives consistent with State and regional growth projections;
 Describe goals, policies and implementation strategies to achieve local housing objectives;  Examine the local need for housing with a focus on special needs populations;  Identify adequate sites for the production of housing serving various income levels;  Analyze potential constraints to new housing production;  Evaluate the Housing Element for consistency with other General Plan elements; and  Evaluate Affirmatively Furthering Fair Housing.

1.2 California’s Housing Crisis
The 6th Cycle Housing Element update comes at a critical time because California is experiencing a housing crisis, and as is the case for all jurisdictions in California, Monte Sereno must play its part in meeting the growing demand for housing. In the coming 20-year period, Santa Clara County is

Chapter 1.0 Introduction 1-2 EMC Planning Group
Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 projected to add 169,700 jobs,1 which represents a 15 percent increase. These changes will increase demand for housing across all income levels, and if the region cannot identify ways to significantly increase housing production, it risks worsening the burden for existing lower-income households, many of whom do not have the luxury or skill set to move to a new job center, but that are nonetheless faced with unsustainable increases in housing cost.

If the region becomes less competitive in attracting high-skilled workers and increasingly unaffordable to lower-income workers and seniors, then social and economic segregation will worsen, only exacerbating historic patterns of housing discrimination, racial bias, and segregation.

This potentiality has become so acute in recent years that the California Legislature addressed the issue with new legislation in 2018. SB 686 requires all state and local agencies to explicitly address, combat, and relieve disparities resulting from past patterns of housing segregation to foster more inclusive communities. This is commonly referred to as Affirmatively Furthering Fair Housing, or AFFH (more on this below).

Monte Sereno has a good record of meeting its housing needs. In the last housing element cycle (2015 to 2023), for example, the City built 122 housing units. This exceeded Monte Sereno’s Regional Housing Needs Allocation (RHNA), which called for the construction of 61 new housing units. Of the units built, over 40 percent (52 units) were affordable to very low-income households.2 Most of the housing built came in the form of accessory dwelling units.

1.3 Regional Housing Needs Allocation
The Plan Bay Area 2050 Final Blueprint forecasts that the nine-county Bay Area will add 1.4 million new households between 2015 and 2050. For the eight-year time frame covered by this Housing Element Update, the Department of Housing and Community Development (HCD) has identified the region’s housing need as 441,176 units. The total number of housing units assigned by HCD is separated into four income categories that cover housing types for all income levels, from very low-income households to market rate housing.3 This calculation is based on population projections produced by the California Department of Finance as well as adjustments that incorporate the region’s existing housing need. Per Government Code Section 65583(a), the Housing Element must also provide quantification and analysis of projected housing needs for extremely low-income households. The number of units for the extremely low-income level is not assigned by HCD, but is left for quantification by the local jurisdiction. This calculation is based on the HCD approved 1 Source: Plan Bay Area, Projections 2040. Association of Bay Area Governments and Metropolitan Transportation Commission, November 2018.
2 Source: City of Monte Sereno post construction surveys. 3 HCD divides the RHNA into the following four income categories:

Very Low income: 0-50% of Area Median Income
Low income: 50-80% of Area Median Income
Moderate income: 80-120% of Area Median Income
Above Moderate income: 120% or more of Area Median Income

Chapter 1.0 Introduction 1-3 EMC Planning Group
Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 methodology4, assuming that 50 percent of very low-income households qualify as extremely lowincome households. Almost all jurisdictions in the Bay Area received a larger RHNA this cycle compared to the last cycle, primarily due to changes in state law that led to a considerably higher RHNA compared to previous cycles.

On January 12, 2022, ABAG’s adopted RHNA Methodology was approved by HCD. For Monte Sereno, the RHNA to be planned for this cycle is 193 units, a slated significant increase from the last cycle. Table 1-1 shows the RHNA for Monte Sereno for the period 2023 through 2031.

Table 1-1 Regional Housing Needs Allocation
Income Group Percentage of AMI Share
Extremely Low Income5 <30 26
Very Low Income <50 27
Low Income 51-80 30
Moderate Income 81-120 31
Above Moderate Income 121 + 79
Total 193
SOURCE: ABAG

1.4 Affirmatively Furthering Fair Housing
Assembly Bill 686 (AB 686), signed in 2018, established an independent state mandate to on public agencies to affirmatively furthering fair housing (AFFH). AB 686 extends requirements for federal grantees and contractors to “affirmatively further fair housing,” including requirements in the federal Fair Housing Act, to public agencies in California. Affirmatively furthering fair housing is defined specifically as taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity by 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.

AB 686 requires public agencies to:
 Administer their programs and activities relating to housing and community development in a manner to affirmatively further fair housing;
4 https://www.hcd.ca.gov/planning-and-community-development/housing-elements/building-blocks/extremely-lowincome-housing-needs 5 Extremely low-income RHNA is found as a subset within the very low-income category for all other tables in this document.

Chapter 1.0 Introduction 1-4 EMC Planning Group
Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023  Not take any action that is materially inconsistent with the obligation to affirmatively further fair housing;
 Ensure that the program and actions to achieve the goals and objectives of the Housing Element affirmatively further fair housing; and
 Include an assessment of fair housing in the Housing Element.

The requirement to Affirmatively Further Fair Housing (AFFH) is derived from The Fair Housing Act of 1968, which prohibited discrimination concerning the sale, rental, and financing of housing based on race, color, religion, national origin, or sex—and was later amended to include familial status and disability. The 2015 U.S. Department of Housing and Urban Development (HUD) Rule to Affirmatively Further Fair Housing and California Assembly Bill 686 (2018) mandate that each jurisdiction takes meaningful action to address significant disparities in housing needs and access to opportunity. AB 686 requires that jurisdictions incorporate AFFH into their Housing Elements, which includes inclusive community participation, an assessment of fair housing, a site inventory reflective of AFFH, and the development of goals, policies, and programs to meaningfully address local fair housing issues.

An exhaustive AFFH analysis was prepared by Root Policy Research and is included as an appendix to this housing element (see Appendix A).

Primary AFFH Findings
Following are the primary AFFH findings:
 Monte Sereno differs from the county and Bay area overall for its relatively high proportion of residents identifying as Non-Hispanic White (71 percent in Monte Sereno to 32 percent in Santa Clara County) and small Hispanic population (7 percent in Monte Sereno and 25 percent in the county). Monte Sereno’s proportion of Black/African American and Other or mixed-race residents is similar to the county, in that it is less than 4 percent for both groups; Fair housing issue and contributing factor(s): Lack of housing that accommodates the compared comparatively lower incomes of people of color, resulting in a lack of diversity in the city.
 Every census tract in Monte Sereno scores high on educational outcomes, meaning that all areas of the city provide access to strong educational environments. There is little variance in graduation rates among Monte Sereno high schoolers by race and ethnicity. Asian students graduated at a slightly higher rate (98.4 percent) than Hispanic and White students’ graduation rates (95.3 percent and 96.5 percent, respectively). African American students did not have enough students enrolled to accurately measure (less than 11 total). The lowest graduation rate is among students with a disability at 88.1 percent--still very high;

Chapter 1.0 Introduction 1-5 EMC Planning Group
Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023  All tracts in Monte Sereno are White majority. Compared to the Bay area overall, Monte Sereno when viewed in isolation is less segregated than the Bay Area overall, , although this is a more likely a factor of lack of diversity within Monte Sereno’s small geographical size than a product of purposeful of integrated communities community integration; Fair housing issue and contributing factor(s): Lack of housing that accommodates the lower incomes of people of color, resulting in a lack of diversity in the city.  Poverty rates are very low for all residents and White and Asian residents experience no poverty according to census data. Low poverty is a factor of a housing market that favors high income households. Monte Sereno has a lower share of very low-income residents than other jurisdictions in the Bay area as a whole, a lower share of low-income residents, a lower share of moderate-income residents, and a higher share of above moderate income residents;  Monte Sereno offers a moderate proximity to jobs, according to HUD’s job proximity index.

The city is largely made up of out-commuters who work in high wage professions in the region;  Since 2015, the housing that has received permits to accommodate growth has largely been priced for the lowest income households, with 43 units permitted for very low-income households—representing 57 percent of all permits. Another 30 permits were issued for housing for above moderate-income households. This is vastly different than nearby Los Gatos, which permitted 134 units, of which none served low or very low-income households and 59 percent served above moderate income households;
 Monte Sereno offers a little to no variety ofvery little diversity of housing types with 96 percent single family detached units; and
Fair housing issue and contributing factor(s): The predominance of single family detached housing in the city has led to an exclusive and high-priced ownership housing market relative to Santa Clara County and the Bay area overall.
 Rental housing is more attainable than ownership housing, due with 37% to the high proportion of rental units that with rent offor less than $1,500/month. This is on par with the Bay area overall (35 percent renting below $1,500/month) and better than county (22 percent).6 Defining Segregation
Segregation is the separation of different demographic groups into different geographic locations or communities, meaning that groups are unevenly distributed across geographic space. This report 6 SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25056. For the data table behind this figure, please refer to the Data Packet Workbook, Table HSG-09.

NOTE: Universe: Renter-occupied housing units paying cash rent

Chapter 1.0 Introduction 1-6 EMC Planning Group
Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 examines two spatial forms of segregation: neighborhood level segregation within a local jurisdiction and city level segregation between jurisdictions in the Bay Area.

Neighborhood level segregation (within a jurisdiction, or intra-city): Segregation of race and income groups can occur from neighborhood to neighborhood within a city. For example, if a local jurisdiction has a population that is 20 percent Latino, but some neighborhoods are 80 percent Latino while others have nearly no Latino residents, that jurisdiction would have segregated neighborhoods.

City level segregation (between jurisdictions in a region, or inter-city): Race and income divides also occur between jurisdictions in a region. A region could be very diverse with equal numbers of white, Asian, Black, and Latino residents, but the region could also be highly segregated with each city comprised solely of one racial group.

There are many factors that have contributed to the generation creation and maintenance of segregation. Historically, racial segregation stemmed from explicit discrimination against people of color, such as restrictive covenants, redlining, and discrimination in mortgage lending. This history includes many overtly discriminatory policies made by federal, state, and local governments (Rothstein 2017). Segregation patterns are also affected by policies that appear race-neutral, such as land use decisions and the regulation of housing development (i..e. large parcel size).

Segregation has resulted in vastly unequal access to public goods such as quality schools, neighborhood services and amenities, parks and playgrounds, clean air and water, and public safety (Trounstine 2015). This generational lack of access for many communities, particularly people of color and lower income residents, has often resulted in poor life outcomes, including lower educational attainment, higher morbidity rates, and higher mortality rates (Chetty and Hendren 2018, Ananat 2011, Burch 2014, Cutler and Glaeser 1997, Sampson 2012, Sharkey 2013).

Segregation Patterns in the Bay Area
Across the San Francisco Bay Area, white residents and above moderate-income residents are significantly more segregated from other racial and income groups (see Appendix 2A). The highest levels of racial segregation occur between the Black and white populations. The analysis completed by the Association of Bay Area Governments (ABAG) 2021 report on segregationfor this report indicates that the amount of racial segregation both within Bay Area cities and across jurisdictions in the region has decreased since the year 2000. This finding is consistent with recent research from the Othering and Belonging Institute at UC Berkeley, which concluded that “[a]lthough 7 of the 9 Bay Area counties were more segregated in 2020 than they were in either 1980 or 1990, racial residential segregation in the region appears to have peaked around the year 2000 and has generally declined since.”7 However, compared to cities in other parts of California, Bay Area jurisdictions have more 7 For more information, see https://belonging.berkeley.edu/most-segregated-cities-bay-area-2020.

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Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 neighborhood level segregation between residents from different racial groups. Additionally, there is also more racial segregation between Bay Area cities compared to other regions in the state.

Segregation and Land Use
It is difficult to address segregation patterns without an analysis of both historical and existing land use policies that impact segregation patterns. Land use regulations influence what kind of housing is built in a city or neighborhood (Lens and Monkkonen 2016, Pendall 2000). These land use regulations in turn impact demographics: they can be used to affect the number of houses in a community, the number of people who live in the community, the wealth of the people who live in the community, and where within the community they reside (Trounstine 2018). Given disparities in wealth by race and ethnicity, the ability to afford housing in different neighborhoods, as influenced by land use regulations, is highly differentiated across racial and ethnic groups (Bayer, McMillan, and Reuben 2004).8
Segregation in the City of Monte Sereno
The City of Monte Sereno, akin to other cities within the region and nation experiences patterns of segregation. Segregation is a result of systemic local, regional, and national level economic decisions and land use patterns throughout history, not necessarily an outcome based in the decisions of current-day individual residents of the community. Regardless, the patterns of segregation within the region results in discrepancies in access to resources, amenities, services, and opportunities between residents of different income levels and racial backgrounds (Trounstine 2015).

The historical policies and initiatives that combined with regional trends created present day segregation patterns must be analyzed to address the current state of and challenges faced by Monte Sereno.

It is difficult to address segregation patterns within Monte Sereno without an analysis of the historical policies and initiatives that created present day segregation patterns. The City of Monte Sereno became incorporated in 1957 as a response to pressures of annexation from surrounding cities, such as Los Gatos. As stated in “Battle of Peaceful Mountain” a historical narrative of Monte Sereno written by Monte Sereno’s first Mayor Thomas Inglis, “most of the residents of Monte Sereno wanted to retain the amenities which had attracted them: large lots, modern taxes, natural scenic beauty unimpaired by unsightly billboards…”. The platform that the e then unincorporated area that is now Monte Sereno ran on when incorporating featured promises of, “country living, strictly residential zoning, preservation of natural scenic beauty, no commercial enterprises, [and] no billboards”.

The intent of incorporating was to maintain the present way of life in Monte Sereno which was limited to large single-family lots. In 1960 the City of Monte Sereno fought against adjacent 8 Using a household-weighted median of Bay Area county median household incomes, regional values were $61,050 for Black residents, $122,174 for Asian/Pacific Islander residents, $121,794 for white residents, and $76,306 for Latino residents. For the source data, see U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B19013B, Table B19013D, B19013H, and B19013I.

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Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 unincorporated Country land being re-zoned for multi-family use. In 1963 the City of Monte Sereno pushed back against a high school that was proposed to be built within the City, stating that the high school would result in “students from outside our City numbering three or four times the number from inside. The resulting diversion from country living, the loss of City tax revenue and the large increase in City expenditures for street construction and maintenance and police protection of the school and against rowdyism would be unfair and unjustified.” The City of Monte Sereno was incorporated on the premise of maintaining a single-family residential town. As a result, the General Plan and Zoning Ordinances maintained the single- family residential zoning, and for the most part, large lot sizes.

The combination of historic land use decisions, unaffordability of housing, as well as regional and national trends of economic discrimination are tied to discriminatory practices that were widespread in that time period. These decisions have resulted in patterns of segregation – both income-related and race-related – to be observed within the community as well as throughout the region as a whole.

The following are highlights of segregation metrics as they apply Monte Sereno.  Above moderate-income residents are the most segregated compared to other income groups in Monte Sereno. Above moderate-income residents live in neighborhoods where they are less likely to encounter residents of other income groups;
 Among all income groups, the very low-income population’s segregation measure has changed the most over time, becoming more segregated from other income groups between 2010 and 2015;
 According to the dissimilarity index, segregation between lower-income residents and residents who are not lower-income has increased between 2010 and 2015. In 2015, the income segregation in Monte Sereno between lower-income residents and other residents was lower than the average value for Bay Area jurisdictions;
 As of 2020, white residents are the most segregated compared to other racial groups in Monte Sereno, as measured by the isolation index. White residents live in neighborhoods where they are less likely to come into contact with other racial groups;  Among all racial groups, the white population’s isolation index value has changed the most over time, becoming less segregated from other racial groups between 2000 and 2020;  According to the dissimilarity index, within Monte Sereno the highest level of racial segregation is between Black and white residents.9 However, local jurisdiction staff should note that this dissimilarity index value is not a reliable data point due to small population size; and 9 The analysis conducted for this report suggests that dissimilarity index values are unreliable for a population group if that group represents approximately less than 5 percent of the jurisdiction’s total population. ABAG/MTC recommends

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Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023  According to the Theil’s H-Index, neighborhood racial segregation in Monte Sereno declined between 2010 and 2020. Neighborhood income segregation increased between 2010 and 2015;  Above moderate-income residents are the most segregated compared to other income groups in Monte Sereno. Above moderate-income residents live in neighborhoods where they are less likely to encounter residents of other income groups;
 Among all income groups, the very low-income population’s segregation measure has changed the most over time, becoming more segregated from other income groups between 2010 and 2015; and
 According to the dissimilarity index, segregation between lower-income residents and residents who are not lower-income has increased between 2010 and 2015. In 2015, the income segregation in Monte Sereno between lower-income residents and other residents was lower than the average value for Bay Area jurisdictions.
that when cities have population groups that are less than 5 percent of the jurisdiction’s population, jurisdiction staff could focus on the isolation index or Thiel’s H-Index to gain a more accurate understanding of neighborhood-level racial segregation in their jurisdiction.

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Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Regional Segregation
The following are highlights of regional segregation metrics as they apply to Monte Sereno.  Regarding income groups, Monte Sereno has a lower share of very low-income residents than other jurisdictions in the Bay Area as a whole, a lower share of low-income residents, a lower share of moderate-income residents, and a higher share of above moderate-income residents.  Monte Sereno has a higher share of white residents than other jurisdictions in the Bay Area as a whole, a lower share of Latino residents, a lower share of Black residents, and a lower share of Asian/Pacific Islander residents; and
 Regarding income groups, Monte Sereno has a lower share of very low-income residents than other jurisdictions in the Bay Area as a whole, a lower share of low-income residents, a lower share of moderate-income residents, and a higher share of above moderate-income residents.

1.5 Overview of Planning Efforts
This section provides an overview of planning and legislative efforts that provide the context for development of the 6th Cycle Housing Element.

Effectiveness of Previous Housing Element
The City of Monte Sereno experienced more development than projected in its Quantified Objectives (122 permits issued v. 61 projected). It met or exceeded its RHNA allocation for very low-income and above moderate-income households. The goals, objectives, policies, and actions in the 2015 Housing Element complied with State Housing Law and provided proper guidance for housing development in the City. In 2023 Housing Element update, objectives for each of the goals have been modified as appropriate to more specifically respond to the housing environment in Monte Sereno from 2023 to 2031. Policies will also be modified as needed to respond to current Housing Element Law and existing and anticipated residential development conditions. See Appendix E for a complete review and analysis of Monte Sereno’s 5th Cycle Housing Element (2015-2023).

New State Laws Affecting Housing
While the City has taken steps throughout the 5th cycle to increase housing production locally, the State passed numerous laws to address California’s housing crisis during the same period. As the State passes new legislation in the remainder of the 5th cycle and during the 6th cycle, the City will continue to amend the Municipal Code; to monitor and evaluate policies and programs designed to meet State requirements; and to proactively implement new policies and programs to help increase housing production citywide.

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Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 In 2019, several bills were signed into law that include requirements for local density bonus programs, the Housing Element, surplus lands, accessory dwelling unit (ADU) streamlining, and removing local barriers to housing production. The City will implement changes required by State law, likely through amendments to the Monte Sereno Municipal Code. The following is a summary of recent legislation and proposed City activities that will further the City’s efforts to increase housing production during the 6th cycle. Please see the section above for a discussion of AB 686 (Affirmatively Furthering Fair Housing).

Incentives for Accessory Dwelling Units
Revisions to state ADU law further incentivized the development of accessory dwelling units (ADUs), through streamlined permits, reduced setback requirements, increased allowable square footage, reduced parking requirements, and reduced fees. The City has amended its regulations and procedures to make it easier and less expensive to build ADUs during the 5th Cycle Housing Element by, for example, exempting ADUs from parking requirements and certain fees. Further changes have recently been incorporated into the City’s Municipal Code to ensure compliance with new state legislation that became effective beginning in 2023. In addition to these actions, the City Council approved a 50% building permit fee reduction for up to 225 properties where the property owner has expressed, in writing, their intention to construct an ADU in the next seven years.

Additionally, the City will continue to identify other options for incentivizing the construction of ADUs that are available specifically for, and affordable to, lower-income households.

Low-Barrier Navigation Centers
AB 101 requires jurisdictions to allow “low-barrier navigation centers” by-right in areas zoned for mixed uses and in nonresidential zones permitting multifamily uses, if the center meets specified requirements.

Surplus Public Land
AB 1255 and AB 1486 seek to identify and prioritize state and local surplus lands available for housing development affordable to lower-income households. The City has identified undertaken the process of identifying any possible surplus lands through the adequate sites inventory of the 6th Cycle Housing Element. and will report on these lands annually through the Housing Element Annual Progress Reports. However, the only land owned by the City is a 0.6 acre parcel where City Hall and the Annex building are located.

Accelerated Housing Production
AB 2162 and SB 2 address various methods and funding sources that jurisdictions may use to accelerate housing production. The City has used SB 2 grant funding to develop objective standards in order to streamline housing production.

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Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Priority Processing
SB 330 enacted changes to local development policies, permitting, and processes that will be in effect through January 1, 2025. SB 330 placed new criteria on the application requirements and processing times for housing developments; prevents localities from decreasing the housing capacity of any site, such as through downzoning or increasing open space requirements, if such a decrease would preclude the jurisdiction from meeting its RHNA housing targets; prevents localities from establishing non-objective standards; and requires that any proposed demolition of housing units be accompanied by a project that would replace or exceed the total number of units demolished.

Additionally, any demolished units that were occupied by lower-income households must be replaced with new units affordable to households with those same income levels.

Housing and Public Safety
Finally, in response to SB 379 and other recent state legislation, local jurisdictions must update their safety element to comprehensively address climate adaptation and resilience (SB 379) and SB 1035 (2018) and identify evacuation routes (SB 99 and AB 747). These updates are triggered by the 6th Cycle housing element update. This housing element contains an evaluation of the existing safety element and contains programming actions to update the safety element to satisfy the new state requirements. Also, as sites are identified and analyzed for inclusion in the City’s housing site inventory, special attention will be paid to the risk of wildfire and the need for evacuation routes. In this way, the City will coordinate updates to all three elements (land-use, housing, and safety), so that it can direct future development into areas that avoid or reduce unreasonable risks while also providing needed housing and maintaining other community planning goals.

Consistency with General Plan
The City of Monte Sereno General Plan was adopted in 2008 and is comprised of the following elements: 1) Land Use; 2) Housing Element; 3) Circulation; 4) Open Space and Conservation; 5) Public Services and Facilities; and 6) Health and Safety.

Monte Sereno’s housing element is being updated at this time in conformance with the 2023-2031 update cycle for jurisdictions in the Association of Bay Area Governments (ABAG) region. The housing element builds upon the other general plan elements and contains policies to ensure that it is consistent with other elements of the general plan. As portions of the general plan are amended in the future, the plan (including the housing element) will be reviewed to ensure that internal consistency is maintained.

1.6 Public Participation
The primary purpose of this chapter is to describe the effort made by the City of Monte Sereno to engage all economic segments of the community (including residents and/or their representatives) in

Chapter 1.0 Introduction 1-13 EMC Planning Group
Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 the development and update of the housing element. This public participation effort also includes formal consultation, pursuant to Government Code § 65352.3, with representatives from nine Native American tribes that are present and active in the Santa Clara County. It is also responsive to AB 686 (Affirmatively Furthering Fair Housing), which requires local jurisdictions, as they update their housing elements, to conduct public outreach to equitably include all stakeholders in the housing element public participation program.

The 6th cycle RHNA numbers are a sea change for all California communities, and the success of the update process hinged in part on a community outreach and engagement program that was robust, inclusive, and meaningful. COVID-19 has complicated community outreach efforts, but the pandemic has also catalyzed the development of new digital tools that have brought interactive engagement to a new level. One such tool is an all-in-one digital community engagement platform called Engagement HQ, or Bang the Table (https://www.bangthetable.com/).

Bang the Table
The City of Monte Sereno partnered with Bang the Table as a cornerstone of its community outreach and engagement program. Using the “Bang the Table” platform, the update team developed an interactive engagement plan that allowed community members to engage on their own time.

Components of the interactive engagement plan included:
 Website. At Home in Monte Sereno at https://athomeinmontesereno.com/is a dedicated website that provides portal to all of the housing-element-related public engagement activities that are available to members of the public. This includes information on housing element basics, site surveys, an SB 9 survey, and materials from community workshops;  Ideas. These “virtual post-it notes” were a way for Monte Sereno community-members to share what inspired them;
 Places. Gathered feedback and photos directly on a map with a simple “pin” drop;  Stories. Helped Monte Sereno better understand, empathize, and relate to others and to all that contributed to the housing element discussion;
 Guestbook. Simple, streamlined, and moderated space where Monte Sereno community-members uploaded comments;
 Q&A. Received questions in a managed space that accommodated messages through the iterative brainstorming process;
 Polls. Questions were posed to get immediate insight with this quick and targeted tool; and  Surveys. Encouraged Monte Sereno community-members to voice their opinions in a convenient way that also helped City staff understand what areas of the city need more

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Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 encouragement to participate. Aggregate data also helped the city understand generally who is participating with the outreach tools.

Monte Sereno’s community engagement program included an initial presentation to City Council, two (2) community meetings (one via zoom and one in person), multiple post cards mailed to each household/resident, article in the Spring 2022 citywide newsletter, information provided at the annual Citywide picnic, direct emails to interested parties, and online/virtual participation opportunities made possible through Bang the Table (described above). Also, as part of this effort, the update team developed a list of organizations that were contacted to participate in the update process, and that list is attached as Appendix F.

Public Participation to Affirmatively Furthering Fair Housing The Monte Sereno public participation program was also responsive to AFFH, which requires local jurisdictions to conduct public outreach to equitably include all stakeholders in the housing element public participation program (see the discussion above for more complete information on AFFH).

Monte Sereno partnered with West Valley Community Services (WVCS) during the process of drafting the Housing Element update. WVCS is a nonprofit organization founded in 1973 that serves low-income and unhoused individuals and families in the West Valley communities of Santa Clara County. WVCS fights poverty by providing critical food, housing, and support services to the low income and homeless individuals and families in the West Valley communities of Cupertino, Saratoga, West San Jose, Los Gatos, Monte Sereno, and the surrounding mountain regions. In just the past year, 3,168 individuals received critical help from the organization, with 1,207 of those individuals receiving assistance from the agency for the first time. WVCS distributed $1,265,686 in emergency assistance to help 573 individuals avoid homelessness or move into permanent housing.

Because of West Valley’s close interaction with the low-income, unhoused, racially diverse, and nonEnglish-speaking members of our community, the nonprofit organization is well-positioned to engage these individuals, who are most in need of housing and support, in the Housing Element process. Engagement with these populations is necessary to meet Affirmatively Furthering Fair Housing (AFFH) requirements. WVCS has the experience and capacity to support clients emotionally and logistically as they navigate sharing their lived experience, such as experiencing homelessness, navigating affordable housing, and living as low-income individuals. With more than 48 years of operating experience, WVCS has unique expertise that can be leveraged to help clients engage in the Housing Element process.

WVCS recently created the Public Policy Coordinator position to bring the agency into conversations, focusing on uplifting our clients to participate in areas that they don’t traditionally have access to. The coordinator spends time in the community and with clients to bring people together and provide education. The coordinator uses expertise and connections with clients, community members, Community Based Organizations (CBOs) and nonprofits to engage the community at-large and help Monte Sereno meet AFFH requirements.

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Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 West Valley Community Services provides a continuum of basic needs for the population it serves, which includes an in-house WVCS Market, mobile Park-It Market, supportive services for the unhoused, emergency financial assistance, case management, community access to resources and education, special programs like the Back-to-School supplies and holiday program to support families. WVCS also owns and operates two apartment complexes: Vista Village and Greenwood Court.

Goals for partnering with West Valley Community Services (WVCS) for outreach:
1) Engaging organizations and individuals who represent lower-income and special needs groups to better understand the experiences of housing insecurity throughout the region; 2) Educating Monte Sereno residents and decision-makers about current housing needs; and 3) Building lasting advocacy capacity within populations who have not participated with policymaking processes such as this Housing Element update.

Descriptions of how this public engagement process has impacted this draft policy update can be found in Chapter 2 and reports for Community Meetings are in Appendix F.

Following is a list of activities that took place through the City’s partnership with WVCS to increase awareness, education, and advocacy to inform Monte Sereno Housing Element’s goals, policies and implementation programs:
 Hosted two Community Meetings, one in-person focused on lived experiences with homelessness, ADUs, and housing insecurity in the west valley, and one virtual focused on Secondary Dwelling Units. Each community meeting involved break-out rooms and a panel of people who shared their experiences and answered live questions; • Community Meeting #1, August 21, 2022: The Monte Sereno Picnic Meeting consisted of a panel of three WVCS clients who shared their experiences with barriers to housing, a desire to live near where they work, and their experiences living in an ADU. The panelists had experience in homelessness or housing insecurity; • Community Meeting #2, December 12, 2022: The Monte Sereno Community Meeting consisted of a panel of three WVCS clients who shared their experiences with barriers to housing along with their experiences living in an ADU. One panelist was a local property who discussed her experience with renting an ADU at below market rate rent to a local teacher The panelists had experience in homelessness or housing insecurity;  Created two videos of WVCS members sharing their experiences, one in relation to homelessness and one in relation to housing insecurity and ADUs; o Housing Perspectives with Denise

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Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 o Housing Perspectives with Jeanine
 Begun outreach to the faith community by reaching out to faith leaders of various faith groups and meeting with some of them;
 Recruited members for WVCS’ Lived Experience Advisory Committee (LEAC) and developed them as leaders and advocates through trainings, actions, and meetings; and  Gathered feedback from members in relation to the housing element as well as their knowledge of local government and which issues are closest to their hearts.

Tribal Consultation
This public participation effort also includes formal consultation, pursuant to Government Code §65352.3, with representatives from nine (9) Native American tribes that are present and active in the Santa Clara County.

Review of Draft and Final Housing Element
During the 30-day public comment period, the City received 50 public comments from the At Home in Monte Sereno Housing Element website, and four (4) letters were submitted by email.

Review and consideration of all public comments has been executed, and changes to the Housing Element have been completed.

The majority of comments received requested additional information, corrected errors, and requested speeding up the timeline for Program E to review the City’s existing SB 9 regulations. This program has been prioritized to be reviewed in 2023-2024.

Table of Contents

2.0 GOALS, POLICIES, AND PROGRAMS...............................................................................2-1

2.1 Introduction ............................................................................................................................2-1

2.2 Meaningful Actions and Public Comments........................................................................2-1

2.3 Goals, Policies, and Programs..............................................................................................2-5 Tables
Table 2-1 Policy Matrix with Community Outreach Voices................................................. 2-1 Table 2-2 Implementation Programs........................................................................................ 2-8

Chapter 2.0 Goals, Policies, and Programs 2-1 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023

2.0 Goals, Policies, and Programs

2.1 Introduction
The City is responsible for enabling the production of housing by reducing regulatory barriers, providing incentives, and supporting programs that create or preserve housing, especially for vulnerable populations. To enable the construction of quality housing, the City has identified four Goals:
 H-1 Facilitate Housing Construction;
 H-2 Provide New Affordable and Equal Opportunity Housing;  H-3 Maintain and Improve the Existing Housing Stock; and  H-4 Publicize Resources.

2.2 Meaningful Actions and Public Comments
Public outreach within the region was considered when policies and programs were drafted for this update. Two community meetings were led in partnership with a regional support agency. Details for the meeting can be found in Appendix F. The following Table 2-1 Policy Matrix with Community Outreach Voices exhibits how the heard voices have translated to policies.

Table 2-1 Policy Matrix with Community Outreach Voices
Intentions Heard from AFFH Outreach
(Input/quotation (date of contribution)
Resulting Policies and Programs
“I’ve always taken care of myself, I’ve always paid my rent, I’ve always done what I’m supposed to do…but in the Silicon Valley, all of a sudden - it was literally overnight - that my rent went to $2,400. I was paying $1,200… I couldn’t afford that with the job that I was doing. There are a lot of people that have had houses, which got foreclosed on, and then they became homeless.” (8-21-22)
“I want to let everybody know that I’ve been here for about twenty years, and I never had a problem with being at the Policy:

H-2.1: Fair Housing
H-2.3: Accessory Dwelling Units

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(Input/quotation (date of contribution)
Resulting Policies and Programs
edge of homelessness because the cost of places were very expensive, that for a single person in Monte Sereno or close by, it’s a difficult thing for one person to afford on such basic salaries…I want to let people know that there are regular people out here that don’t do drugs, don’t drink…that have trouble with finding housing. ADUs are a wonderful thing to have that are single or have a family to get …out in society.

We want to be good people in the community.” (8-21-22)
Program:

I: Accessory Dwelling Units
O: Fair Housing
“The reason why I am taking part in this panel is because I think there should be a change in the housing system and I face a lot of consequences…we were struggling to pay rent on time. I think it is very important to have affordable homes…I have almost been homeless and West Valley helped me come out of my situation. There’s a lot of people like me that need help and need affordable homes.” (8-21-22)
Policy:

H-2.3 Accessory Dwelling Units
H-2.4 Development Incentives
Programs:

M: Countywide Cooperation
“…Also, there’s an older generation… our social securities don’t pay that much. There’s going to be a lot of elderly that are going to still need housing as well. It’s not just people who don’t make a lot, there’s going to be elderly, young people who can’t afford these skyrocketing rents…having these
people stay here and do the jobs that we need is important. It isn’t always about people who are drunks or drug
addicts…there’s regular people out there doing regular jobs that need housing.” (12-12-22)
Policy:

H-2.2: Housing Options for
Seniors
Programs:

J: Special Needs Households
K: Seniors and Accessory
Dwelling Units
“I remember I would ask my teachers where they would live, and most of them wouldn’t live in the towns I went to school in. I went to elementary to high school in Los Gatos, and most of my teachers don’t live in Los Gatos because they can’t afford to. A lot of them have to commute from areas like Santa Cruz, where that commute is rough every
morning…having more opportunity for them to be closer to school - imagine how much more a teacher can be attentive if they’re not having to go through that commute every morning and afternoon…” (12-12-22)
Policy:

H-2.1: Fair Housing
Programs:

H: Employee Housing

Chapter 2.0 – Goals, Policies, and Programs 2-3 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Intentions Heard from AFFH Outreach
(Input/quotation (date of contribution)
Resulting Policies and Programs
“It’d be great to have a one stop shop, that would make the process a lot easier. I know other people who’ve tried to go down the ADU build route and got really frustrated, so if someone else can come and help you along, it would make things a lot easier.”
“I didn’t know anything about designing an ADU, and I knew I had to get an architect, and these permitting things, and I had to hire a general contractor, and there’s going to be all these builders in my backyard making a mess. I live alone and I didn’t want to deal with all the change orders and the possible price increase…and not knowing anything about
building, they can say anything to me…” (12-12-22)
Policy:

H-1.1 Efficient Development
Processing
H-1.2 Housing Design Principles
Programs:

A: Improve Permit Processing
Timelines
“I wish more people knew that not everybody that’s homeless has a choice. I’ve never had a problem with paying my rent, I’ve never had a problem with paying my bills, but ADUs provide homes for people that this crazy rent raise has impacted. We’re good, hardworking people, and ADUs will provide housing for these people to get back on their feet, to get a better job, to help them move forward.” (WVCS ELI Focus Group, 2022)
Policies:

H-2.1 Fair Housing
H-2.3 Accessory Dwelling Units
Programs:

I: Accessory Dwelling Units
J: Special Needs Housing
K: Seniors and Accessory
Dwelling Units
“I just needed somebody to give me a chance, and it was so hard, because I had no laptop, and I’d basically lost everything that I owned. It was kind of hard for me to try to find where somebody could just help me out. I would hop on bus after bus to a library just to get computer access and search for any help that was out there.” (WVCS ELI Focus Group, 2022)
Policies:

H-2.1 Fair Housing
H-4.1 Promote and Enforce Fair
Housing
Programs:

X: Fair Housing Resources

Chapter 2.0 – Goals, Policies, and Programs 2-4 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Intentions Heard from AFFH Outreach
(Input/quotation (date of contribution)
Resulting Policies and Programs
“You’ve got daycare workers, retail people, restaurant workers – those are all minimum wage jobs…. The teachers who work at our school districts can’t afford to live here, neither can firefighters. I think if you all want those things – these workers need a place to live. If they don’t have a place to live, they’ll have to leave.

I think it’s really short sighted not to remember that we exist, and that you actually need us. By having affordable housing, we’ll have a place to live… it shouldn’t be a privilege to have a place to live. Everybody deserves a place to live.” (WVCS ELI Focus Group, 2022)
Policies:

H-1.3 Adequate Housing Sites
H-2.1 Fair Housing
H-4.1 Promote and Enforce Fair
Housing
Programs:

H: Employee Housing
J: Special Needs Housing
X: Fair Housing Resources
“I lived in an ADU for about a year… it was home. I really, really enjoyed having the space where I had a refrigerator and a stove… It was just like a little tiny home. It was very comfortable - big enough for you not to feel like you were being squished. ADUs are just terrific because it makes it feel like it’s your home.” (WVCS ELI Focus Group, 2022)
Policies:

H-1.3 Adequate Housing Sites
H-2.1 Fair Housing
H-2.3 Accessory Dwelling Units
Programs:

I: Accessory Dwelling Units
K: Seniors and Accessory
Dwelling Units
“For a single person in Monte Sereno or closeby, it’s a difficult thing for one person to afford (rent) on such basic salaries… ADUs are a wonderful thing to have to help people that are single or maybe with a family to get their foot in in society. We want to be good people to the community.”
(WVCS ELI Focus Group, 2022)
Policies:

H-1.3 Adequate Housing Sites
H-2.1 Fair Housing
H-2.3 Accessory Dwelling Units
Programs:

I: Accessory Dwelling Units
K: Seniors and Accessory

Chapter 2.0 – Goals, Policies, and Programs 2-5 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Intentions Heard from AFFH Outreach
(Input/quotation (date of contribution)
Resulting Policies and Programs
Dwelling Units
“It took me a really long time to find affordable housing, not only because I’m disabled, but because of some challenges with neurodivergence, and also a lot of challenges in getting places and doing things consistently with my capacity.” (WVCS ELI Focus Group, 2022)
Policies:

H-1.3 Adequate Housing Sites
H-2.1 Fair Housing
H-4.1 Promote and Enforce Fair
Housing
Programs:

J: Special Needs Housing
X: Fair Housing Resources
“Centralization is my key thing I’d like to see us doing a much better job of - centralizing the listing… let’s provide some transparency. Let’s get in there and actually provide
information in a central spot for people to gather, so that what resources we do have, we actually can distribute.” (WVCS ELI Focus Group, 2022)
Policies:

H-2.1 Fair Housing
H-4.1 Promote and Enforce Fair
Housing
Programs:

X: Fair Housing Resources
“People, when they think about discrimination, they think about race, or gender, or something like that. But there’s also financial discrimination that we have to overcome. There’s also the discrimination of ‘where did you live in the last six months?’ I can’t put ‘I lived in my truck.’" (WVCS ELI Focus Group, 2022)
Policies:

H-2.1 Fair Housing
Programs:

P: Low Barrier Navigation
Centers

2.3 Summary of Quantified Objectives
Monte Sereno plans for 184 newly-constructed units, 24 units rehabilitated (through Program I:

ADU Incentives), and 10 units conserved or preserved (through Program T: Housing Maintenance) for a total of 218 units.

Chapter 2.0 – Goals, Policies, and Programs 2-6 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Table 2-2 Quantified Objectives
Income
Category
New
Construction Rehabilitation Conservation/ Preservation
Very Low 58 17 2
Low 55 3 2
Moderate 53 3 1
Above
Moderate 26 1 5
Totals 192 24 10
Rehabilitation income distribution is based on responses to the ADU Survey (see Table 4-3).

Conservation/rehabilitation income distribution is based on existing income distribution in Monte Sereno (see Figure B-10).

2.3 4 Goals, Policies, and Programs
GOAL H-1: FACILITATE HOUSING CONSTRUCTION
Policies
Policy H-1.1 Efficient Development Processing
Remove constraints to the production and availability of housing, consistent with other General Plan policies.

Policy H-1.2 Housing Design Principles
Require that residential development is well-integrated into the natural environment and physical landscape of the site and scenic qualities are preserved such as hills, ridgelines and views.

Policy H-1.3 Adequate Housing Sites
Ensure that sites are provided as needed for a variety of housing types for all income levels to accommodate Monte Sereno’s RHNA for 2023-2031.

Chapter 2.0 – Goals, Policies, and Programs 2-7 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 GOAL H-2: PROVIDE NEW AFFORDABLE AND EQUAL OPPORTUNITY

HOUSING
Policies
Policy H-2.1 Fair Housing
Support special need population groups gaining access to housing and continue to enforce fair housing laws prohibiting arbitrary discrimination in the building, financing, selling or renting of housing on the basis of: race, national origin, citizenship/immigration status, primary language, age, religion, disability, sex (including gender identity and sexual orientation), genetic information, marital status, family status (including pregnancy), source of income, and military or veteran status.

Support expansion of housing choice for persons and families who are underrepresented in the city relative to the county by developing affordable housing, more diverse and affordable housing types, and affirmatively market availability of units constructed to under-represented households in the county (e.g., through local employers, nonprofit partners, affordable housing listing services).

Policy H-2.2 Housing Options for Seniors
Assist seniors as a growing proportion of the Monte Sereno Community in identifying and developing suitable living situations. Ensure that housing options are affirmatively marketed to under-represented households in the county (e.g., nonprofit partners who serve seniors of color).

Policy H-2.3 Accessory Dwelling Units
Encourage the construction of new Accessory Dwelling Units through incentives, and increased public outreach to meet the need for lower income housing in the City.

Policy H-2.4 Development Incentives
Facilitate the development of affordable housing through incentives and concessions and/or financial assistance.

GOAL H-3: MAINTAIN AND IMPROVE THE EXISTING HOUSING STOCK.

Policies
Policy H-3.1 Property and Housing Conditions
Support the efforts of property owners to maintain and improve homes in Monte Sereno.

Chapter 2.0 – Goals, Policies, and Programs 2-8 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Policy H-3.2 Infrastructure
Ensure adequate investments in public services and facilities to maintain a high-quality living environment in older residential neighborhoods.

Policy H-3.3 Energy and Water Conservation
Encourage energy and water conserving practices in the maintenance of existing dwellings and in new residential development.

GOAL H-4: PUBLICIZE RESOURCES
Policies
Policy H-4.1 Promote and Enforce Fair Housing
Continue to promote and enforce fair housing laws prohibiting arbitrary discrimination in the building, financing, selling or renting of housing on the basis of:
race, national origin, citizenship/immigration status, primary language, age, religion, disability, sex (including gender identity and sexual orientation), genetic information, marital status, family status (including pregnancy), source of income, and military or veteran status.

Table 2-2 Implementation Programs, provides a breakdown of each program, associated policies, quantified objectives, and performance metric(s).

Table 2-23 Implementation Programs
Table 2-2 Implementation Programs
Goal H-1: Facilitate Housing Construction
A Improve Permit Processing Timelines
Risk and costs associated with the
planning entitlement timelines act as a
deterrent to housing developers. The City
will monitor average processing times for
ministerial and discretionary development
permits, and use data on processing
times and applications to track review
times and trends in development. The
City will identify revisions to the City’s
procedures in order to expedite the
development review process, such as
removing multiple permit requirements,
especially for special needs housing and
Implementation Policies
H-1.1 Efficient Development Processing
H-1.2 Housing Design Principles
H-1.3 Adequate Housing Sites
Responsible Department/Review
Authority
City Staff and Council
Timeframe
Review and update annuallyRevise
procedures by December 2025
Funding Source
General Fund
Quantified Objective

Chapter 2.0 – Goals, Policies, and Programs 2-9 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Table 2-2 Implementation Programs
affordable housing for very low, low and
moderate-income households. Increase development by expediting development review process
Performance Metric(s)
# of permits approved during housing
cycle
B Site Development Permits
Consistent application of City regulations
and Design Standards facilitate new
development and increase certainty for
housing developers. The City will
continue to require Site Development
Permit approval for all new homes
(manufactured homes will continue to be
reviewed consistent with state law) and
require project consistency with the City
Objective Development Design
Standards. The following are exempt from
Site Development Permit approval in
accordance with State Law:
 Accessory Dwelling Units; and
 Units subject to SB 9 California
Housing Opportunity and More
Efficiency (HOME) Act which
enables homeowners to split their
single-family residential lot into two
separate lots and build up to two
new housing units on each.

Manufactured homes are currently
reviewed in accordance with state law,
the City’s Objective Development
Design Standards will be updated to
expressly state this.

Implementation Policies
H-1.1 Efficient Development Processing
H-1.2 Housing Design Principles
H-1.3 Adequate Housing Sites
Responsible Department/Review
Authority
City Staff and Council
Timeframe
Annually, ongoing through the 2022-2031
planning period
Funding Source
None required
Quantified Objective
N/A
Performance Metric(s)
N/A
C Facilitate Parcel Maps
Aligning the process for subdivisions of
four lots or fewer reduces the
administrative burden and incentivizes the
establishment of new lots for
development. The City will revise
Municipal Code Section 13.01.050 by
December 2025 to eliminate the Tentative
Map requirement for subdivisions of two
or more lots and replace it with a Parcel
Implementation Policies
H-1.1 Efficient Development Processing
H-1.2 Housing Design Principles
H-1.3 Adequate Housing Sites
Responsible Department/Review
Authority
City Staff and Council
Timeframe
2023-2024

Chapter 2.0 – Goals, Policies, and Programs 2-10 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Table 2-2 Implementation Programs
Map requirement for four lots or fewer
consistent with the Subdivision Map Act. Funding Source General Fund
Quantified Objective
10 Above Moderate-income units
Performance Metric(s)
# of new units developed
D Flag Lots
Flag lots are a method to increase the
number of lots in the City available for
residential development. The City will
evaluate Municipal Code Section

13.02.300 Flag Lot regulations and
update the requirements to facilitate new
flag lots including reducing minimum lot
sizes, setbacks and frontage
requirements.

Implementation Policies
H-1.1 Efficient Development Processing
H-1.2 Housing Design Principles
H-1.3 Adequate Housing Sites
Responsible Department/Review
Authority
City Staff and Council
Timeframe
Amend ordinance and complete
necessary General Plan amendments in
the period 2023- December 2024
Funding Source
General Fund
Quantified Objective
10 Above Moderate-income units
Performance Metric(s)
# of new units developed
E Review SB9 Regulations
The City will review the current SB 9
regulations to facilitate new construction
in accordance with existing City Zoning
district development standardsall State
laws, including removing the existing 800
square foot maximum building size
allowed for SB 9 projects, as well as any
additional modifications that further
enhance state law such as requiring two
units be constructed on each lot created
by an SB9 Urban Lot Split.. Constraints
will be analyzed, extensive outreach will
be undertaken to ensure all sectors of the
community have an opportunity for input,
Implementation Policies
H-1.1 Efficient Development Processing
H-1.2 Housing Design Principles
H-1.3 Adequate Housing Sites
Responsible Department/Review
Authority
City Staff and Council
Timeframe
Amend ordinance in the period 2023-
December 2024, as neededby December
2023
Funding Source
General Fund

Chapter 2.0 – Goals, Policies, and Programs 2-11 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Table 2-2 Implementation Programs
and necessary code changes will be
completed. Quantified Objective
25 Above Moderate-income units
Performance Metric(s)
# of new units constructed
F Update the General Plan
The City’s 2008 General Plan has a 2025
planning horizon. The document
represents the policy direction of the 2008
City Council on community values, ideals
and aspirations to govern a shared
environment through 2025. The housing
environment has changed dramatically
since 2008 with land prices, development
costs, and housing costs significantly
more costly and constrained. Given the
age of the General Plan and the changes
in the community and region since the
Plan’s adoption the City will plan on
updating the General Plan.

Implementation Policies
H-1.1 Efficient Development Processing
H-1.2 Housing Design Principles
H-1.3 Adequate Housing Sites
Responsible Department/Review
Authority
City Staff and Council
Timeframe
Budget and Initiate update in FY 2024-
2025
Funding Source
General Fund
Quantified Objective
N/A
Performance Metric(s)
N/A
Goal H-2: Provide New Affordable and Equal Opportunity Housing G Development Incentives
An effective tool for increasing housing
production are development incentives.

The City will strengthen their partnership
with Santa Clara County Housing
Authority to make specific outreach efforts
with developers of housing affordable to
lower income and special need
households annually.

The City will also establish a tracking
method to ensure proactive outreach is
made at least annually to affordable
housing developers and agencies. The
Annual Progress Report will include a
status update on this annual outreach.

Implementation Policies
H-2.1 Fair Housing
H-2.2 Housing Options for Seniors
H-2.3 Accessory Dwelling Units
H-2.4 Development Incentives
Responsible Department/Review
Authority
City Staff and Council
Timeframe
Public Forum for Developer Education,
Bi-annually with the first forum in 2024.

Funding Source
General Fund
Quantified Objective
Increase housing production; source
funding for development; discover and

Chapter 2.0 – Goals, Policies, and Programs 2-12 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Table 2-2 Implementation Programs
The City will proactively provide Santa
Clara County Housing Authority with
biannual invitations to an annual public
discussion forum to the construction
firms, architects and engineers,
environmental engineers, appraisers, and
market analysts with whom they partner.

Discussion forums will focus on educating
the Council on what the needs from the
development community may be to better
inform potential City development
incentives. The City will also assist with
identifying and/or applying for project
funding from other sources including, but
not limited to, CDBG and HOME funds
implement development incentive
options10 new housing units dedicated to
low income or special needs populations.

Performance Metric(s)
# of low-income and special needs units
developed; $ amount of funding
H Employee Housing
Per Health and Safety Code Sections
17021.5 and 17021.6, the City will revise
the Municipal Code to allow employee
housing serving six or fewer agricultural
employees in any residentially zoned
areas, subject to the same standards that
apply to a single-family residence.

Employee housing is rented on a monthly
basis and can provide an entry point into
the housing market.

Implementation Policies
H-2.1 Fair Housing
H-2.2 Housing Options for Seniors
H-2.3 Accessory Dwelling Units
H-2.4 Development Incentives
Responsible Department/Review
Authority
City Staff and Council
Timeframe
Amend ordinance in the period 2023-
2025
Funding Source
General Fund
Quantified Objective
Promote housing accessibility to
agricultural employees
Performance Metric(s)
of units available for agricultural
employees
I Accessory Dwelling Units
Accessory dwelling units are complete
independent housing units that can be
either detached or attached from an
existing single-family residence. Based on
their relatively small size, and because
they do not require paying for land or
major new infrastructure, accessory
dwelling units ("ADUs") are considered
Implementation Policies
H-2.1 Fair Housing
H-2.2 Housing Options for Seniors
H-2.3 Accessory Dwelling Units
H-2.4 Development Incentives
Responsible Department/Review
Authority
City Staff and Council
Timeframe

Chapter 2.0 – Goals, Policies, and Programs 2-13 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Table 2-2 Implementation Programs
affordable by design. ADUs can provide
affordable housing options for family
members, seniors, students, in-home
health care providers, and other small
household types. ADUs can also be
useful to generate additional rental
income for the homeowner. The City will
continue to administer and improve the
Accessory Dwelling Units (ADU)
Program, with the following actions:
 Continue to survey affordability,
and use, and production of ADUs,
annually. If ADU construction
goals, or affordability goals, or
availability/use of such units are not
met on an annual basis as
reviewed with the Annual Progress
Report, expectations are not met
at the mid-cycle review of this
Housing Element, within six months
of such annual review the city will
consider other incentives and rezoning to ensure the RHNA requirements will be met;
 Provide an ADU amnesty program
that allows and incentivizes
property owners with an
unpermitted ADU to obtain proper
permits to legalize the unit through
reduced building permit fees
(2023). Extensive community
outreach on the ADU amnesty
program will be undertaken
including city-wide mailings, social
media postings, and information
provided at the City Hall front
counter.;
 Establish incentives for ADU
construction by creating a building
permit fee waiver/reduction
program (2023);
Consider allowing ADUs larger than
1,200 square feet on certain lots to
Approve program amendments to remove
identified constraints to ADU production
throughout the 2023-2031 planning period
Funding Source
General Fund
Quantified Objective
193 160 total new ADUs, as follows: 29
24 Extremely Low, 2429 Very Low, 4858
Low, 4858 Moderate; and, 16 above
moderate.; ADU Amnesty Program 10 24
units
Legalize 24 unpermitted ADUs to legal
units through the amnesty program.

Performance Metric(s)
Number# of new ADUs constructed or
legalized during the housing cycle

Chapter 2.0 – Goals, Policies, and Programs 2-14 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Table 2-2 Implementation Programs
accommodate the needs of large
families;
 Create an outreach program to
each resident to inform them of the
ADU code allowances and building
permit fee waiver/reduction
program (2023);
 Establish pre-approved ADU plans
that meet all building, fire, and
zoning codes. This would assist
property owners with the planning
of a new ADU by lowering design
costs and streamlining the
architectural work. Monte Sereno
will work with the Santa Clara
County Housing Collaborative on
the option of coordinating this
program with other local
jurisdictions (first quarter 2024);
 Publish and advertise the available
incentives for ADUs through the
City website and at City Hall front
counter (ongoing);
 Provide the Accessory Dwelling
Unit Handbook published by the
State Department of Housing and
Community Development (HCD)
directly to Monte Sereno residents
(2023); and
 Review local ADU regulations to
determine where local
requirements are for more
restrictive than the State laws and
remove any more restrictive local
requirements.
 Revise the ADU to ordinance to
comply with all State laws (January
2024).

J Special Needs Households Implementation Policies
H-2.1 Fair Housing
H-2.2 Housing Options for Seniors

Chapter 2.0 – Goals, Policies, and Programs 2-15 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Table 2-2 Implementation Programs
Households with Special Needs (including
persons with physical and developmental
disabilities) oftentimes have difficulty
securing affordable and appropriate
housing. In order to encourage the
development of housing that meets the
needs of this population, the City will:
 Promote the use of Accessory
Dwelling Units as an opportunity to
provide affordable housing for
special needs individuals, such as
seniors (and their caregivers) and
disabled family members (ongoing,
see Program I);
 Continue to allow transitional
housing, supportive housing and
residential care facilities, including
group homes for six or less
persons, as a use by right in all R-1
neighborhoods (ongoing);
 Annually contact nonprofit housing
sponsors, such as West Valley
Community Services, to coordinate
and implement a strategy for
developing or making housing
available for lower and moderateincome households, including special needs households. And
report on this annual proactive
outreach in each Annual Progress
Report (on an annual basis); and
 Support regional agencies whose
purpose is to increase and/or
support access to housing for
special needs populations. The
City’s commitments may include
information and/or funding
(ongoing)..

H-2.3 Accessory Dwelling Units
H-2.4 Development Incentives
Responsible Department/Review
Authority
City Staff and Council
Timeframe
Annually, ongoing through the 2023-2031
planning period
Funding Source
General Fund
Quantified Objective
Increase housing accessibility for special
needs populations
Performance Metric(s)
# of new ADUs or units made available to
special needs populations; # of special
needs individuals who benefit from
regional agencies that receive City
support
K Seniors and Accessory Dwelling Units
The City will assist seniors to “age in
place” and better utilize existing housing
and residential lots by promoting
Implementation Policies
H-2.1 Fair Housing
H-2.2 Housing Options for Seniors
H-2.3 Accessory Dwelling Units
H-2.4 Development Incentives

Chapter 2.0 – Goals, Policies, and Programs 2-16 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Table 2-2 Implementation Programs
Accessory Dwelling Units as viable
housing option. Staff will develop an
outreach plan specifically targeted at
seniors to encourage the development of
ADUs.

The City will amend the ordinance to
comply with existing law in 2024 and
will further analyze how best to remove
constraints to ADU construction for
seniors, including considering an increase
in the maximum ADU size (currently
1,200 square feet) to ensure ADUs are a
desirable option by December 2025.

Responsible Department/Review
Authority
City Staff and Council
Timeframe
December 2025
Funding Source
General Fund
Quantified Objective
Ensure that seniors have access to
housing options that are affordable
Performance Metric(s)
# of new ADUs or units developed to
intentionally serve the senior population
L Shared Housing Options
The City will explore and implement if
appropriate other options to provide
additional affordable housing
opportunities within its existing housing
stock. For example, shared housing or
renting rooms would be most appropriate
for a community such as Monte Sereno
that has many large housing units
capable of housing more people. Shared
Housing programs, such as COVIA,
match persons needing housing with
homeowners and others who have space
to rent. At a minimum, the City will contact
shared housing agencies annually and
publicize opportunities on the City website
to share housing, including the new Silver
Nest program through Project Sentinel.

The City will also track proactive outreach
actions, which will be made at least
annually to affordable housing
developers. The Annual Progress Report
will include a status update on this annual
outreach.

Implementation Policies
H-2.1 Fair Housing
H-2.2 Housing Options for Seniors
H-2.3 Accessory Dwelling Units
H-2.4 Development Incentives
Responsible Department/Review
Authority
City Staff and Council
Timeframe
Annually, prior to April 1 of each year,
ongoing through the 2023-2031 planning
period
Funding Source
General Fund
Quantified Objective
5 Extremely Low and 5 Very Low-Income
Persons
Performance Metric(s)
# of individuals that participate in the
shared housing program
L.2 Implementation Policies
H-2.1 Fair Housing

Chapter 2.0 – Goals, Policies, and Programs 2-17 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Table 2-2 Implementation Programs
Facilitate the Development of
Affordable Housing for Extremely LowIncome Housing Residents The City will encourage development of
housing for extremely-low-income
households through a variety of activities
such as targeted outreach to for-profit and
non-profit housing developers on at least
an annual basis, providing in-kind
technical assistance, fee deferrals,
expedited/priority processing, identifying
grant and funding opportunities, applying
for or supporting applications for funding
on an ongoing basis, reviewing and
prioritizing local funding for developments
that include housing for ELI households
and/or offering additional incentives to
supplement the density bonus provisions
in State law.

H-2.2 Housing Options for Seniors
H-2.3 Accessory Dwelling Units
H-2.4 Development Incentives
Responsible Department/Review
Authority
City Staff and Council
Timeframe
Annually, prior to April 1 of each year,
ongoing through the 2023-2031 planning
period
Funding Source
General Fund
Quantified Objective
City contribution towards increasing the
supply of affordable housing throughout
the region
Performance Metric(s)
# of ELI units developed and added to
existing housing stock; # of new programs
created to further AFFH
M Countywide Cooperation
The City will work with nearby
communities to explore countywide
affordable housing needs and solutions.

On an annual basis, the City Manager will
provide a summary report of activities in
cooperation with other jurisdictions and/or
agencies to further increase the supply of
affordable housing in the County of Santa
Clara.

Ongoing funding to support housing
affordability will be considered annually
as part of the budget adoption process.

Also, included in this report will be a
description of the City’s efforts to meet its
RHNA goals. This information will also be
included in the City’s annual Housing
Element update to HCD.

Implementation Policies
H-2.1 Fair Housing
H-2.2 Housing Options for Seniors
H-2.3 Accessory Dwelling Units
H-2.4 Development Incentives
Responsible Department/Review
Authority
City Staff and Council
Timeframe
Annually, prior to April 1 of each year,
ongoing through the 2023-2031 planning
period
Funding Source
General Fund
Quantified Objective
City contribution towards increasing the
supply of affordable housing throughout
the region
Performance Metric(s)

Chapter 2.0 – Goals, Policies, and Programs 2-18 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Table 2-2 Implementation Programs
# of affordable units developed and
added to existing housing stock; # of new
programs created to further AFFH
N Reasonable Accommodation
The City will continue to implement its
“Reasonable Accommodations”
procedures as contained in the Municipal
Code. Additionally, current code
constraints on Reasonable
Accommodation requests including the
requirement for a hearing and decisionmaking surrounding factors A, B, C, and F of Municipal Code section 10.23.050 will
be removed from the Municipal Code.

Implementation Policies
H-2.1 Fair Housing
H-2.2 Housing Options for Seniors
H-2.3 Accessory Dwelling Units
H-2.4 Development Incentives
Responsible Department/Review
Authority
City Staff and Council
Timeframe
Annually, prior to April 1 of each year,
ongoing through the 2023-2031 planning
period, Municpal Code to be Updated by
December 2024
Funding Source
General Fund
Quantified Objective
N/A
Performance Metric(s)
N/A
N.2 Group Homes for Seven or More
Persons
The City will update the Municipal Code
to remove the requirement that
“Residential Care Homes” are required to
be state-licensed facilities, as certain
types of group homes may not require a
state license.

Implementation Policies
H-2.1 Fair Housing
H-2.4 Development Incentives
Responsible Department/Review
Authority
City Staff and Council
Timeframe
December 2024
Funding Source
General Fund
Quantified Objective
N/A
Performance Metric(s)
N/A
O Fair Housing Implementation Policies

Chapter 2.0 – Goals, Policies, and Programs 2-19 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Table 2-2 Implementation Programs
The City will work with other organizations
to promptly address complaint of
discrimination in the sale, rent and
development of housing in Monte Sereno.

With increased access to fair housing
education and sources to remedy issues,
it is possible that Monte Sereno may
experience an uptick in case reporting,
and that this may be seen as progress
towards greater accountability with fair
housing compliance, overall.

H-2.1 Fair Housing
H-2.2 Housing Options for Seniors
H-2.3 Accessory Dwelling Units
H-2.4 Development Incentives
Responsible Department/Review
Authority
City Staff and Council
Timeframe
Annually, prior to April 1 of each year,
ongoing through the 2023-2031 planning
period
Funding Source
General Fund
Quantified Objective
Mitigate and resolve issues arising from
housing discrimination
Performance Metric(s)
# of housing discrimination cases
addressed and resolved
P Low Barrier Navigation Center
AB101 (2019) provides a pathway to
permanent housing for people
experiencing homelessness. In order to
comply with State law, the City will amend
the Zoning Code definitions to include the
definition for “Low Barrier Navigation
Center.” The zoning amendment will
permit low barrier navigation centers
without discretionary action and in
compliance with Government Code
section 65661.

Implementation Policies
H-2.1 Fair Housing
H-2.2 Housing Options for Seniors
H-2.3 Accessory Dwelling Units
H-2.4 Development Incentives
Responsible Department/Review
Authority
City Staff and Council
Timeframe
Complete by December 2024
Funding Source
General Fund
Quantified Objective
Increase accessibility to housing
opportunities for those experiencing
homelessness
Performance Metric(s)
# of homeless individuals placed in
housing units (compare numbers from

Chapter 2.0 – Goals, Policies, and Programs 2-20 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Table 2-2 Implementation Programs
PIT count throughout each year of
housing cycle)
Q Analyze Implement Multi-Family
Housing Re-zoning
Multi-family zoning encourages and
facilitates a variety of housing types
including feasibility-tested density,
development standards and permit
procedures. The City will analyze and
identify significant and realistic
opportunities for multi-family development
in the planning period, including but not
limited to identification and rezoning of at
least two of sites, any known constraints
or impediments, parcel size,
appropriateness of densities and
methodology for calculating residential
capacity.

Analysis will include all parcels within the
city and land that may be likely to be
annexed into the city.

The new zoned parcels will be required to
be developed as multi-story attached
rental apartment typologies. Affirmative
marketing will be required, particularly for
reaching applicants that may be large
households, female-headed households,
farmworkers, or seniors.

As part of the program, the City will
analyze potential application of SB 10
because:
 There are unique isolated
opportunity sites within the city,
including a single site used in the
4th Cycle, which may be good
candidates for use of this optional
state law;
 Nearly all of the city’s housing
stock is not conducive to lot
consolidation or redevelopment,
Implementation Policies
H-1.3 Adequate Housing Sites
H-2.1 Fair Housing
Responsible Department/Review
Authority
City Staff and Council
Timeframe
June 2025
Funding Source
General Fund
Quantified Objective
Identify and re-zone a minimum of two
sites appropriate for multi-family housing
Performance Metric(s)
# of sites identified for MF zoning
designation; # of housing types available

Chapter 2.0 – Goals, Policies, and Programs 2-21 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Table 2-2 Implementation Programs
which would be necessary for a
multi-family zoning change to
effectively result in new unit
construction;
 The CEQA exemption applicable
for the SB-10 zoning adoption
process allows this process to be
expedited for more immediate
implementation;
 Enabling up to 10 units on a given
parcel within Monte Sereno would
enable a greater increase in
density for single parcels than is
likely to be realistic for most other
multi-family zoning processes; and
 SB-10 allows the jurisdiction local
control to determine criteria by
which they consider sites to
construct at a higher
densityhousing type constructed
and ensure the multifamily rentalstyle units are requied.

Q.2 SB35 Written Procedures
The City will establish written procedures
consistent with streamlining procedures of
Government Code section 65913.4 (SB
35) to be used if the City becomes subject
to such applications by not meeting the
RHNA requirements.

Implementation Policies
H-2.1 Fair Housing
Responsible Department/Review
Authority
City Staff and Council
Timeframe
June 2024
Funding Source
General Fund
Quantified Objective
N/A
Performance Metric(s)
N/A
R Participate In Regional Homelessness
Program
Implementation Policies
H-2.1 Fair Housing
Responsible Department/Review
Authority

Chapter 2.0 – Goals, Policies, and Programs 2-22 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Table 2-2 Implementation Programs
As shown in the Santa Clara County 2022
Point in Time Survey, the unhoused
population in the West Valley region
(Saratoga, Cupertino, Campbell, Los
Gatos, and Monte Sereno) has increased
even as Monte Sereno’s unhoused
homeless population remained at zero.
.The city will participate in regional efforts,
which Regional efforts may include
pursing a Homekey Permanent
Supportive Housing project, supporting
safe parking programs, cold weather
shelter, and hiring an unhoused
specialist.

The city will review its emergency shelter
standards to ensure they are objective,
and to evaluate whether the maximum
number of beds to be served by the
facility should be increased.

City Staff and Council
Timeframe
2023-2024
Funding Source
General Fund
Quantified Objective
Increase the opportunities available to the
unhoused population.

Performance Metric(s)
# of new opportunities available to
unhoused population within the region
through collaboration with neighboring
cities
S Allow Single Room Occupancyies
Units in all Zoning Districts
The City will review and amend the
zoning code to allow Single Room
Occupancies (SROs), including
Transitional and Supportive Housing in
the Public Zoning District as a by-right
use without discretionary action. This use
is already allowed by-right, without
discretionary action in all other zoning
districts in the City.

Any future zoning that allows residential
use, including any multifamily or mixed
use, must also allow by-right development
of SROs, transitional, and permanent
supportive housing without discretionary
review.

Implementation Policies
H-1.1 Efficient Development Processing
H-2.1 Fair Housing
Responsible Department/Review
Authority
City Staff and Council
Timeframe
2023-2024
Funding Source
General Fund
Quantified Objective
N/A
Performance Metric(s)
N/A
Goal H-3: Maintain and Improve the Existing Housing Stock

Chapter 2.0 – Goals, Policies, and Programs 2-23 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Table 2-2 Implementation Programs
T Housing Maintenance
Maintenance and upkeep of housing is
critical to ensure health and safety,
prevent major costly damages, and
ensure a high-quality housing stock. The
City will continue to pursue code
enforcement on homes that are not
maintained in compliance with City codes.

Implementation Policies
H-3.1 Property and Housing Conditions
H-3.2 Infrastructure
H-3.3 Energy Conservation
Responsible Department/Review
Authority
City Staff and Council
Timeframe
Annually, ongoing through the 2023-2031
planning period
Funding Source
General Fund
Quantified Objective
Close 10 code enforcement cases within
the 2023 – 2031 housing cycle
Performance Metric(s)
# of units brought into compliance with
City Code Enforcement
U Infrastructure Capital Improvements
City infrastructure including sewer and
roads are critical for housing. The City will
review and revise on a biannual basis the
Capital Improvement Program (CIP) to
identify public infrastructure priorities that
will maintain the community's older
residential neighborhoods.

The City will prioritize the development of
a bicycle and pedestrian master plan
identified in the 2008 General Plan to
further expand mobility options within the
City.

The City also commits to publicly
supporting regional transportation
opportunities, including bus and transit
that may improve options for current and
future residents of Monte Sereno.

Implementation Policies
H-3.1 Property and Housing Conditions
H-3.2 Infrastructure
H-3.3 Energy Conservation
Responsible Department/Review
Authority
City Staff and Council
Timeframe
Biannually, ongoing through the 2023-
2031 planning period
Funding Source
General Fund
Quantified Objective
Maintain the City’s road conditions at a
Pavement Condition Index (PCI) of 70
Performance Metric(s)
N/A
V Energy Conservation Implementation Policies

Chapter 2.0 – Goals, Policies, and Programs 2-24 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Table 2-2 Implementation Programs
Conserving energy helps preserve the
integrity of the electrical grid and reduces
emissions that contribute to climate
change. The City will encourage energy
conservation practices for new and
existing residential dwelling units by
enforcing State and local regulations and
encouraging incentives for energy
conservation “best practices.” Suggested
actions include:
 Continue to offer streamlining and
reduced permitting fees for solar
panel installations;
 Continue to implement the
CALGreen building code
requirements;
 Continue to evaluate “Reach
Codes” for all-electric building
requirements;
 Provide information regarding
rebate programs and energy audits
available through PG&E;
 Provide resource materials
regarding green building and
conservation programs; and
 Consider Valley Water’s draft
Model Water Efficient New
Development Ordinance
H-3.1 Property and Housing Conditions
H-3.2 Infrastructure
H-3.3 Energy Conservation
Responsible Department/Review
Authority
City Staff and Council
Timeframe
Annually, ongoing through the 2023-2031
planning period
Funding Source
General Fund
Quantified Objective
193 New housing units with energy
conservation features that reduce energy
usage by an average of 10%.

Performance Metric(s)
# of solar panel installations
W Water Conservation
Water conservation is an important
component of energy and resource
conservation. The City will adopt a water
conservation ordinance modeled on
Valley Water’s Model Water Efficiency
New Development Ordinance, which is
responsive to extended drought
conditions in California.

Implementation Policies
H-3.1 Property and Housing Conditions
H-3.2 Infrastructure
H-3.3 Energy Conservation
Responsible Department/Review
Authority
City Staff and Council
Timeframe
Completed by the end of FY 2023-2024
Funding Source

Chapter 2.0 – Goals, Policies, and Programs 2-25 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Source: City of Monte Sereno; EMC Planning Group
Table 2-2 Implementation Programs
General Fund
Quantified Objective
193 New housing units with water
conservation features that reduce water
usage by an average of 10%.

Performance Metric(s)
# of housing units with water conservation
features
Goal H-4: Publicize Resources
X Fair Housing Enforcement
Communicating to the public about fair
housing laws and available programs is
essential to raise awareness and to
connect people with resources. The City
will provide written information on fair
housing laws and resources at the
Planning Department counter as well as
on the City’s website. Further, the City will
promote the use of Project Sentinel, a
HUD approved housing counseling
agency in Santa Clara County as a
resource for fair housing information and
advisory services.

Implementation Policies
H-4.1 Promote and Enforce Fair Housing
Responsible Department/Review
Authority
City Staff and Council
Timeframe
Annually, ongoing through the 2023-2031
planning period
Funding Source
General Fund
Quantified Objective
Review all housing complaintsWith
increased awareness, 3 fair housing
complaints may be registered over the
planning period.

Performance Metric(s)
# of fair housing complaints reviewed (this
may increase initially with increased
awareness)

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Table of Contents

3.0 OVERVIEW OF HOUSING NEEDS AND CONSTRAINTS ..........................................3-1

3.1 Introduction ............................................................................................................................3-1

3.2 Monte Sereno Overview........................................................................................................3-1

3.3 Overview of Housing Needs................................................................................................3-3

3.4 Governmental and Non-Governmental Constraints......................................................3-11 Tables
Table 3-1 Population Growth Trends...................................................................................... 3-3

Chapter 3.0 Overview of Housing Needs and Constraints 3-1 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023

3.0 Overview of Housing Needs and Constraints

3.1 Introduction
This chapter summarizes housing needs and constraints in the City of Monte Sereno. The analysis of housing needs primarily utilizes data compiled by Association of Bay Area Governments (ABAG) in the “Housing Needs Data Report: Monte Sereno” (ABAG/MTC, Baird + Driskell Community Planning, April 2, 2021), which was approved by the California Department of Housing and Community Development (HCD). For a detailed analysis of housing needs, please see Appendix B—Housing Needs Assessment. Also, for a detailed analysis of governmental and nongovernmental constraints, please see Appendix C—Housing Constraints.

3.2 Monte Sereno Overview
The Bay Area continues to see growth in both population and jobs, which means more housing of various types and sizes is needed to ensure that residents across all income levels, ages, and abilities have a place to call home. While the number of people drawn to the region over the past 30 years has steadily increased, housing production has stalled, contributing to the housing shortage that communities are experiencing today. In many cities, this has resulted in residents being priced out, increased traffic congestion caused by longer commutes, and fewer people being able to purchase homes or meet surging rents. The Monte Sereno 6th Cycle Housing Element provides a roadmap for City officials as they join the effort to solve the region’s housing challenges.

Summary of Key Facts
Monte Sereno is a quiet residential community that was incorporated as a response to annexation pressure from surrounding cities. Monte Sereno is a built-out residential community with no central core or downtown area. Early in the City’s history, the beauty and tranquility of the area attracted artists and writers looking for a peaceful and inspirational place to pursue their craft, which included American author John Steinbeck, who wrote the Grapes of Wrath while living in the community. In the current context of housing shortages throughout California and particularly the Bay Area, Monte Sereno has faced its unique challenge primarily through the construction of accessory dwelling units.

This approach has allowed the community to maintain its essential character while meeting its regional housing obligations.

Chapter 3.0 Overview of Housing Needs and Constraints 3-2 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 In Monte Sereno, disparity in housing choice—particularly for low- and moderate-income households living in other parts of the county and in the region—is the main challenge confronting the city. Although Monte Sereno has done well in permitting affordable accessory dwelling units, the City’s lack of vacant land limits its ability to produce standalone affordable housing types, such as apartments. This, in turn, has prevented low- and moderate-income households who exist in the county and broader region from residing in the City.
 Population growth trends in Monte Sereno are significantly lower than the county and regional rates;
 The community differs from the county and Bay area overall for its relatively high proportion of residents identifying as Non-Hispanic White (71 percent in Monte Sereno compared to 32 percent in Santa Clara County) and small Hispanic population (seven percent in Monte Sereno and 25 percent in the county);
 Monte Sereno scores high on educational outcomes, meaning that all areas of the city provide access to strong educational environments;
 Poverty rates are very low for all residents Monte Sereno has a lower share of very low-income residents than other jurisdictions in the Bay area as a whole, a lower share of low-income residents, a lower share of moderate-income residents, and a higher share of above moderate-income residents;
 Monte Sereno is located close to jobs, but does not have many jobs in the city itself. The city is largely made up of out-commuters who work in high wage professions in the region;  Since 2015, Monte Sereno has met and surpassed its goal of providing housing for the lowest income households, with 43 units permitted for very low-income households—representing 57 percent of all permits. Another 30 permits were issued for housing for above moderate-income households. This is significantly different than nearby Monte Sereno, which permitted 134 units, of which none served low- or very low-income households and 59 percent served above moderate income households;
 Nonetheless, Monte Sereno lacks housing that accommodates the lower incomes, resulting in a lack of diversity in the city. Monte Sereno offers a little to no variety of housing types with 96 percent single-family detached units. This predominance of single-family detached housing in the city has led to an exclusive and high-priced ownership housing market relative to Santa Clara County and the Bay area overall;
 In the last decade home prices in Monte Sereno have increased by 75.3 percent, and the largest proportion of homes in the city have a value in excess of $2 million. The trend is slightly less dramatic for rental housing, but still of concern. For rental housing prices increased by 36.0

Chapter 3.0 Overview of Housing Needs and Constraints 3-3 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023  percent, and the typical rent for an apartment in Monte Sereno is approximately $2,700. To afford the typical apartment in Monte Sereno without cost burden, a Monte Sereno household would need to earn $108,880 annually1; and
 Segregation is essentially absent in Monte Sereno, as all residents live in neighborhoods identified as “Highest Resource” or “High Resource” areas by State-commissioned research, while none live in areas identified by this research as “Low Resource” or “High Segregation and Poverty” areas. The primary reason for this outcome is that lower-income households are largely absent from the community.

3.3 Overview of Housing Needs
The following section provides an overview of demographic information, housing characteristics, and special housing needs in Monte Sereno. For a more complete discussion of housing needs, see Appendix B.

Population Trends
Generally, the population of the Bay Area continues to grow because of natural growth and because the strong economy draws new residents to the region. The population of Monte Sereno increased by 3.2 percent since 2000, which is significantly below the 14.8 percent growth rate of the Bay Area.

In 2020 the population of Monte Sereno was estimated to be 3,594 according to the Department of Finance. The population of Monte Sereno makes up 0.2 percent of Santa Clara County.2 In Monte Sereno, roughly 4.9 percent of its population moved during the past year, a number that is significantly below the regional rate of 13.4 percent. Table 3-1 shows population growth trends for Monte Sereno, Santa Clara County, and the Bay Area as a whole.

Table 3-1 Population Growth Trends
Geography 1990 1995 2000 2005 2010 2015 2020
Monte Sereno 3,287 3,236 3,483 3,493 3,341 3,465 3,594
Santa Clara Co. 1,497,577 1,594,818 1,682,585 1,752,696 1,781,642 1,912,180 1,961,969 Bay Area 6,020,147 6,381,961 6,784,348 7,073,912 7,150,739 7,595,694 7,790,537 SOURCE: California Department of Finance, E-5 series
1 Note that contract rents may differ significantly from, and often being lower than, current listing prices. 2 To compare the rate of growth across various geographic scales, Figure 2-1 shows population for the jurisdiction, county, and region indexed to the population in the year 1990. This means that the data points represent the population growth (i.e., percent change) in each of these geographies relative to their populations in 1990. NOTE: Universe: Total population; For more years of data, please refer to the Data Packet Workbook, Table POPEMP-01.

Chapter 3.0 Overview of Housing Needs and Constraints 3-4 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Population by Age
The distribution of age groups in a city shapes what types of housing the community may need in the near future. An increase in the older population may mean there is a developing need for more senior housing options, while higher numbers of children and young families can point to the need for more family housing options and related services. There has also been a move by many to age-in-place or downsize to stay within their communities, which can mean more multifamily and accessible units are also needed.

In 2019, the median age was 48 years, an increase from the median age of 42 in 2000. The population of those under 15 has increased since 2010, while the 65-and-over population has increased. This reflects a nationwide aging trend related to the large Baby Boom Generation as well as some local characteristics. The City of Monte Sereno is a community with a high quality of life and pleasant climate that encourages residents to stay throughout their lives. Many senior homeowners in Monte Sereno are long-time residents and have a pre-Prop 13 property tax basis.

Aging in place, attracting retirees, and high housing costs that favor older, more financially stable households all contribute to the aging trend in the city.

Population by Race/Ethnicity
Understanding the racial makeup of a city and region is important for designing and implementing effective housing policies and programs. These patterns are shaped by both market factors and government actions, such as exclusionary zoning, discriminatory lending practices and displacement that has occurred over time and continues to impact communities of color today.3 Since 2000, the percentage of residents in the City of Monte Sereno identifying as White, NonHispanic has decreased by 12.6 percentage points, with this 2019 population standing at 2,456. At the same time the percentage of residents of all Other Race of Multiple Races, Non-Hispanic has increased. In absolute terms, the Asian/API, Non-Hispanic population increased the most while the White, Non-Hispanic population decreased the most. In 2020, 72.3 percent of Monte Sereno’s population was White, which is significant below the proportion in the Bay Area as a whole.4 Employment
The largest industry in which Monte Sereno residents work is Financial & Professional Services, and the largest sector in which Santa Clara residents work is Health & Educational Services. For the Bay Area as a whole, the Health & Educational Services industry employs the most workers. 3 See, for example, Rothstein, R. (2017). The color of law: a forgotten history of how our government segregated America. New York, NY & London, UK: Liveright Publishing. 4 The Census Bureau’s American Community Survey accounts for ethnic origin separate from racial identity. The numbers reported here use an accounting of both such that the racial categories are shown exclusive of Latinx status, to allow for an accounting of the Latinx population regardless of racial identity. The term Hispanic has historically been used to describe people from numerous Central American, South American, and Caribbean countries. In recent years, the term Latino or Latinx has become preferred. This report generally uses Latinx, but occasionally when discussing US Census data, we use Hispanic or Non-Hispanic, to clearly link to the data source.

Chapter 3.0 Overview of Housing Needs and Constraints 3-5 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Monte Sereno has many more housing than jobs, and this has improved only slightly over time. The jobs-household ratio in Monte Sereno increased from 0.29 to 0.37 jobs per household between 2002 and 2018. This deficit of jobs relative to residents suggests that most people travel outside the community to work. Monte Sereno has more low-wage residents than low-wage jobs (where low-wage refers to jobs paying less than $25,000). At the other end of the wage spectrum, the city has more high-wage residents than high-wage jobs (where high-wage refers to jobs paying more than $75,000).

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

In Monte Sereno, 79.3 percent of households make more than 100 percent of the Area Median Income (AMI)5, compared to 8.2 percent making less than 30 percent of AMI, which is considered extremely low-income. Regionally, more than half of all households make more than 100 percent AMI, while 14.7 percent make less than 30 percent AMI. In Santa Clara County, 30 percent AMI is the equivalent to the annual income of $39,900 for a family of four. Many households with multiple wage earners, including food service workers, full-time students, teachers, farmworkers and healthcare professionals, can fall into lower AMI categories due to relatively stagnant wages in many industries.

Throughout the region, there are disparities between the incomes of homeowners and renters.

Typically, the number of low-income renters greatly outpaces the amount of housing available that is affordable for these households. In Monte Sereno, the largest proportion of both homeowners and renters falls in the Greater than 100 percent of AMI group.

Currently, people of color are more likely to experience poverty and financial instability as a result of federal and local housing policies that have historically excluded them from the same opportunities extended to white residents.6 These economic disparities also leave communities of color at higher 5 Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located. Households making between 80 and 120 percent of the AMI are moderate-income, those making 50 to 80 percent are low-income, those making 30 to 50 percent are very lowincome, and those making less than 30 percent are extremely low-income. This is then adjusted for household size. 6 Moore, E., Montojo, N. and Mauri, N., 2019. Roots, Race & Place: A History of Racially Exclusionary Housing the San Francisco Bay Area. Hass Institute.

Chapter 3.0 Overview of Housing Needs and Constraints 3-6 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 risk for housing insecurity, displacement or homelessness. In Monte Sereno, Hispanic or Latino and Other Race or Multiple Races (Hispanic and Non-Hispanic) residents experience the highest rates of poverty, followed by White (Hispanic and Non-Hispanic) residents.

Tenure
The number of residents who own their homes compared to those who rent their homes can help identify the level of housing insecurity (i.e., ability for individuals to stay in their homes) in a city and region. Generally, renters may be displaced more quickly if prices increase. In Monte Sereno there are a total of 1,128 housing units, and fewer residents rent than own their homes: 6.5 percent versus

93.5 percent. By comparison, 43.6 percent of households in Santa Clara County are renters, while

43.9 percent of Bay Area households rent their homes.

Homeownership rates often vary considerably across race/ethnicity in the Bay Area and throughout the country. These disparities not only reflect differences in income and wealth, but also stem from federal, state, and local policies that limited access to homeownership for communities of color while facilitating homebuying for white residents. While many of these policies, such as redlining, have been formally disbanded, the impacts of race-based policy are still evident across Bay Area communities. In Monte Sereno, all non-White households owned their homes, while homeownership rates were 91.8 percent for White households. Notably, recent changes to state law require local jurisdictions to examine these dynamics and other fair housing issues when updating their Housing Elements.

In many cities, homeownership rates for households in single-family homes are substantially higher than the rates for households in multi-family housing. In Monte Sereno, 93.4 percent of households in detached single-family homes are homeowners.

Existing Housing Conditions
The city has not received any code-enforcement data showing existing housing units are substandard or in need or rehabilitation. No such housing conditions have been identified by staff or received as a code enforcement complaint. As self-reported in Census surveys, the American Community Survey (ACS) relays that no renter households in Monte Sereno report living in substandard housing; with less than 2 percent of owner households are lacking or complete plumbing. Although substandard housing is not an issue in Monte Sereno, Program T (Housing Maintenance) has been included to ensure that existing housing stock is maintained and to avoid potential substandard housing problems.

Displacement
Because of increasing housing prices, displacement is a major concern in the Bay Area.

Displacement has the most severe impacts on low- and moderate-income residents. When individuals or families are forced to leave their homes and communities, they also lose their support network.

Chapter 3.0 Overview of Housing Needs and Constraints 3-7 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 The University of California, Berkeley has mapped all neighborhoods in the Bay area, identifying their risk for gentrification. They find that in Monte Sereno, there are no households that live in neighborhoods that are susceptible to or experiencing displacement and none live in neighborhoods at risk of or undergoing gentrification. Equally important, some neighborhoods in the Bay Area do not have housing appropriate for a broad section of the workforce. UC Berkeley estimates that all households in Monte Sereno live in neighborhoods where low-income households are likely to be excluded due to prohibitive housing costs.

Housing Stock Characteristics
Number of Homes
The number of new homes built in the Bay Area has not kept pace with the demand, resulting in longer commutes, increasing prices, and exacerbating issues of displacement and homelessness. The number of homes in Monte Sereno increased, 2.7 percent from 2010 to 2020, which is significantly below the growth rate for Santa Clara County and below the growth rate of the region’s housing stock during this time period.

Between 2015 and 2021, 122 housing units were issued permits in Monte Sereno which represents 200 percent of the RHNA number of 61 units assigned in the 5th cycle Housing Element.

Approximately 43 percent of permits issued in Monte Sereno were for lower-income housing.

Housing Type
It is important to have a variety of housing types to meet the needs of a community today and in the future. In 2020:
 95.6 percent of homes in Monte Sereno were single family detached;  2.7 percent were single family attached;
 0.3 percent were small multifamily (2-4 units); and
 1.4 percent were medium or large multifamily (5+ units).

The housing stock of Monte Sereno is generally in good condition, and a few homes require reconstruction or rehabilitation. The high quality of life, desirable location, walkable neighborhoods, and exceptional schools have provided the market signals and financial incentive for property owners to rehabilitate homes and maintain them.

Home Prices
A diversity of homes at all income levels creates opportunities for all Monte Sereno residents to live and thrive in the community.
 Ownership The largest proportion of homes had a value in excess of $2 million in 2019. Home prices increased by 75.3 percent from 2010 to 2020; and

Chapter 3.0 Overview of Housing Needs and Constraints 3-8 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023  Rental Prices – The typical rent for an apartment in Monte Sereno is approximately $2,700, and rental prices have increased by 36.0 percent in the last decade. To afford the typical apartment in Monte Sereno without cost burden, a Monte Sereno household would need to earn $108,880 annually.
7 According to Census data, there are approximately 73 renter-occupied units in Monte Sereno, or about 66 percent of the total number of housing units Cost Burden
The U.S. Department of Housing and Urban Development considers housing to be affordable for a household if the household spends less than 30 percent of its income on housing costs. A household is considered “cost-burdened” if it spends more than 30 percent of its monthly income on housing costs, while those who spend more than 50 percent of their income on housing costs are considered “severely cost-burdened.” In Monte Sereno, 12.1 percent of households spend 50 percent or more of their income on housing.

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

Neighborhood
100 percent of residents in Monte Sereno live in neighborhoods identified as “Highest Resource” or “High Resource” areas by State-commissioned research, while none live in areas identified by this research as “Low Resource” or “High Segregation and Poverty” areas. These neighborhood designations are based on a range of indicators covering areas such as education, poverty, proximity to jobs and economic opportunities, low pollution levels, and other factors.8 Special Housing Needs
Some population groups may have special housing needs that require specific program responses, and these groups may experience barriers to accessing stable housing due to their specific housing circumstances.

Large Households
Large households, with five (5) or more persons, often have different housing needs than smaller households. If a city’s rental housing stock does not include larger apartments, large households who rent could end up living in overcrowded conditions. In Monte Sereno, all units occupied by large 7 Note that contract rents may differ significantly from, and often being lower than, current listing prices. 8 For more information on the “opportunity area” categories developed by HCD and the California Tax Credit Allocation Committee, see this website: https://www.treasurer.ca.gov/ctcac/opportunity.asp. The degree to which different jurisdictions and neighborhoods have access to opportunity will likely need to be analyzed as part of new Housing Element requirements related to affirmatively furthering fair housing. ABAG/MTC will be providing jurisdictions with technical assistance on this topic this summer, following the release of additional guidance from HCD.

Chapter 3.0 Overview of Housing Needs and Constraints 3-9 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 households (i.e., five (5) or more persons) are owner occupied. In 2017, there were no large households in Monte Sereno that were very low-income (i.e., earning less than 50 percent of the area median income).

Female Headed Households
Households headed by one person are often at greater risk of housing insecurity, particularly female-headed households, who may be supporting children or a family with only one income.

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

In Monte Sereno, the largest proportion of households is Married-Couple Family Households at 85.2 percent of total, while Female-Headed Households make up 3.1 percent of all households.

Senior Households
Senior households often experience a combination of factors that can make accessing or keeping affordable housing a challenge. They often live on fixed incomes and are more likely to have disabilities, chronic health conditions and/or reduced mobility. Seniors, defined as persons who are 65 years or older, who rent may be at even greater risk for housing challenges than those who own, due to income differences between these groups.

When cost-burdened seniors are no longer able to make house payments or pay rents, displacement from their homes can occur, putting further stress on the local rental market or forcing residents out of the community they call home. Understanding how seniors might be cost-burdened is of particular importance due to their special housing needs, particularly for low-income seniors. In Monte Sereno, the largest proportion of senior households who rent and the largest proportion who own both earn Greater than 100% of AMI.

People with Disabilities
People with disabilities face additional housing challenges. Encompassing a broad group of individuals living with a variety of physical, cognitive and sensory impairments, many people with disabilities live on fixed incomes and are in need of specialized care, yet often rely on family members for assistance due to the high cost of care. When it comes to housing, people with disabilities are not only in need of affordable housing, but accessibly designed housing, which offers greater mobility and opportunity for independence. Unfortunately, the need typically outweighs what is available, particularly in a housing market with such high demand. People with disabilities are at a high risk for housing insecurity, homelessness and institutionalization, particularly when they lose aging caregivers. Overall, 6.8 percent of people in Monte Sereno have a disability of some kind.

State law also requires Housing Elements to examine the housing needs of people with developmental disabilities. Developmental disabilities are defined as severe, chronic, and attributed

Chapter 3.0 Overview of Housing Needs and Constraints 3-10 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 to a mental or physical impairment that begins before a person turns 18 years old. This can include Down’s Syndrome, autism, epilepsy, cerebral palsy, and mild to severe mental retardation. Some people with developmental disabilities are unable to work, rely on Supplemental Security Income, and live with family members. In addition to their specific housing needs, they are at increased risk of housing insecurity after an aging parent or family member is no longer able to care for them.9 In Monte Sereno, there are seven (7) children under the age of 18 make with a developmental disability (58.3 percent), while there are five (5) adults with a developmental disability (41.7 percent).

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

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

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

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

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

Farmworkers generally receive wages that are considerably lower than other jobs and may have temporary housing needs. Finding decent and affordable housing can be challenging, particularly in the current housing market.
9 For more information or data on developmental disabilities in your jurisdiction, contact the Golden Gate Regional Center for Marin, San Francisco and San Mateo Counties; the North Bay Regional Center for Napa, Solano and Sonoma Counties; the Regional Center for the East Bay for Alameda and Contra Costa Counties; or the San Andreas Regional Center for Santa Clara County.

Chapter 3.0 Overview of Housing Needs and Constraints 3-11 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 In Monte Sereno, there were no reported students of migrant workers in the 2019-20 school year.

The trend for the region for the past few years has been a decline of more than two (2) percent in the number of migrant worker students since the 2016-17 school year. The change at the county level is a 50 percent decrease in the number of migrant worker students since the 2016-17 school year.

3.4 Governmental and Non-Governmental Constraints
Housing development is affected by government regulations and other non-governmental forces, such as the cost of land and building materials and the availability and cost of housing loans.

Housing elements are required to investigate the impact of these constraints as they present themselves in the city for which the housing element is being prepared. This subsection provides a brief overview of governmental and non-governmental constraints in the City of Monte Sereno.

Please see Appendix C for a full discussion of housing constraints.

The City of Monte Sereno maintains a zoning code that in more typical cities would constitute a significant constraint on the development of affordable housing. Its maximum density for multi-family housing is eight (8) dwelling units per acre, which even with applicable density bonus would in typical situations be inadequate for the development of affordable housing under existing market conditions and with available tax credits and grant programs.

Nonetheless, Monte Sereno has skillfully implemented the development of accessory dwelling units (ADUs) in a manner that has allowed it to meet and surpass its regional housing needs allocation. It has essentially turned the city’s overwhelming supply of large single-family properties—typically signaling a dearth of affordable housing opportunities—into an asset that hosts develop opportunities for affordable housing. This solution has proven capable of meeting the community’s needs for affordable housing and does so while preserving the essential character that is Monte Sereno.

In terms of other governmental constraints—such of requiring conditional use permits for multi-family housing—the City has recently adopted objective design standards that ease the regulatory burden for housing development.

In terms of non-governmental constraints, land costs will remain a constraint to affordable housing, and programs to use publicly-owned lands—such as City-owned land—can make a difference, and in future housing element cycles, it may be here that the City turns to meet its housing needs. The cost of construction materials is also a constraint, and to the degree that the City can subsidize affordable housing projects with available funds dedicated to housing, this too can make a difference.

Chapter 3.0 Overview of Housing Needs and Constraints 3-12 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 This side intentionally left blank.

Table of Contents

4.0 VACANT AND AVAILABLE SITES ....................................................................................4-1

4.1 Introduction ............................................................................................................................4-1

4.2 Regional Housing Needs Allocation....................................................................................4-1

4.3 Overview RHNA Strategy.....................................................................................................4-3

4.4 Site Inventory ..........................................................................................................................4-7

4.5 Summary and Conclusions..................................................................................................4-20

4.0 VACANT AND AVAILABLE SITES ..............................................................................4-1

4.1 Introduction ............................................................................................................................4-1

4.2 Regional Housing Needs Allocation....................................................................................4-1

4.3 Overview RHNA Strategy.....................................................................................................4-3

4.4 Site Inventory ..........................................................................................................................4-6

4.5 Summary and Conclusions....................................................................................................4-9 Tables
Table 4-1 Monte Sereno’s Regional Housing Needs Allocation – 2023–2031 .................. 4-2 Table 4-2 Monte Sereno’s Adjusted RHNA............................................................................ 4-2 Table 4-3 Monte Sereno’s Affordability ADU Survey Results........................................... 4-13 Table 4-4 Vacant/Partially Vacant and Available Sites Capacity........................................ 4-20 Figures
Figure 4-1 Site Inventory Map .................................................................................................. 4-11

Chapter 4.0 Vacant and Available Sites 4-1 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023

4.0 Vacant and Available Sites

4.1 Introduction
The Plan Bay Area 2050 Final Blueprint1 forecasts that the nine-county Bay Area will add 1.4 million new households between 2015 and 2050. For the eight-year time frame covered by this Housing Element Update, the Department of Housing and Community Development (HCD) has identified the region’s housing need as 441,176 units. The total number of housing units assigned by HCD is separated into four income categories that cover housing types for all income levels, from very low-income households to market rate housing. This calculation, known as the Regional Housing Needs Allocation (RHNA), is based on population projections produced by the California Department of Finance as well as adjustments that incorporate the region’s existing housing need.

The adjustments result from recent legislation requiring HCD to apply additional adjustment factors to the baseline growth projection from California Department of Finance, in order for the regions to get closer to healthy housing markets. To this end, adjustments focus on the region’s vacancy rate, level of overcrowding and the share of cost burdened households and seek to bring the region more in line with comparable ones. These new laws governing the methodology for how HCD calculates the RHNA resulted in a significantly higher number of housing units for which the Bay Area must plan compared to previous cycles.

4.2 Regional Housing Needs Allocation
In December 2021, ABAG adopted a Final Regional Housing Needs Allocation (RHNA) Methodology for the 2023-2031 cycle. For Monte Sereno, the RHNA required to be planned for this cycle is 193 units, a significant increase from the last cycle.

RHNA Summary
Monte Sereno’s share of the regional housing need for the seveneight-year period from 2023 to 2031 is 193 units, which is a 316 percent increase over the 61 units required by the 2015 to 2022 RHNA.

The housing need is divided into the five income categories of housing affordability. Table 4-1 shows Monte Sereno’s RHNA for the planning period 2023 through 2031 in comparison to the RHNA distributions for Santa Clara County and the Bay Area region. 1 Plan Bay Area 2050 is a long-range plan charting the course for the future of the nine-county San Francisco Bay Area.

It covers four key issues: the economy, the environment, housing and transportation

Chapter 4.0 Vacant and Available Sites 4-2 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 Table 4-1 Monte Sereno’s Regional Housing Needs Allocation – 2023–2031 Income
Group
Monte
Sereno
Units
Percent
Santa Clara
County
Units
Percent Bay Area
Units Percent
Extremely Low
Income (<30% of
AMI)*
26 13.7% 16,158 12.4% 57,221 12.9%
Very Low Income
(<50% of AMI) 27 13.7% 16,158 12.4% 57,221 12.9%%
Low Income
(50%-80% of
AMI)
30 15.5% 18,607 14.4% 65,892 14.9%
Moderate Income
(80%-120% of
AMI)
31 16.1% 21,926 16.9% 72,712 16.5%
Above Mod.

Income (>120%
of AMI)
79 40.9% 56,728 43.8% 188,130 42.6%
Total 193 100.0% 129,577 100.0% 441,176 100.0%
SOURCE: ABAG 2021
*Extremely Low Income is 50% of the Very Low Income category Progress to Date
The RHNA planning period for the 2023-2031 Housing Element (6th Cycle) is June 30, 2022 through December 31, 2030. The statutory adoption date for the 6th Cycle Housing Element is January 1, 2023—a full six months after the beginning of the planning period. To account for this discrepancy, the City of Monte Sereno must account for the number of housing units permitted between June 30, 2022, and January 1, 2023, prior to adoption of the 6th Cycle Housing Element and apply these to the 2023-2031 RHNA. Accordingly, the new housing units permitted during this period count towards the 2023-2031 planning period and are subtracted from the 6th-Cycle RHNA.

Table 4-2 shows the City of Monte Sereno’s adjusted RHNA, which accounts for progress made prior to the adoption of the updated Housing Element document.

Table 4-2 Monte Sereno’s Adjusted RHNA
Very LowIncome
Units
LowIncome
Units
ModerateIncome
Units
Above
ModerateIncome Units
Total
Units
2023–2031 RHNA 53 30 31 79 193
Units permitted between July 1,
2022 and December 31, 2022
3 2 3 2 10
Remaining RHNA 50 28 28 77 183

Chapter 4.0 Vacant and Available Sites 4-3 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 SOURCE: City of Monte Sereno

4.3 Overview RHNA Strategy
Monte Sereno will meet their RHNA with units from several sources:
• Housing Progress to Date (10 units)
• Vacant Sites (4 units)
• Accessory Dwelling Units (160 units)
• JADUs (8 units)
• ADU Amnesty (24 units)
• SB 9 (10 units)
In this 6th Cycle Housing Element, the City is identifying potential from some limited vacant sites and some SB 9 interest expressed by community members made during the comment period.

Primarily, Monte Sereno will rely on construction of accessory dwelling units (ADUs) to meet its housing needs. As discussed more fully in Appendix C (Housing Constraints), the City of Monte Sereno is building off its 5th cycle success where it was largely able to meet and surpass its RHNA for the 2015-2023 planning period through the development of accessory dwelling units (ADUs).

This will be supported by smaller numbers of units from recent housing developments, vacant sites, and SB 9 applications.

Table 4-2 Meeting Monte Sereno’s RHNA
Very LowIncome
Units
LowIncome
Units
ModerateIncome
Units
Above
ModerateIncome Units
Total
Units
2023–2031 RHNA 53 30 31 79 193
Housing Progress to Date 3 2 3 2 10
Vacant Sites 2 0 0 2 4
Accessory Dwelling Units 48 48 48 16 160
Junior Accessory Dwelling
Units 2 3 2 1 8
SB9 3 2 0 5 10
ADU Amnesty 7 7 8 2 24
Total 65 62 61 28 216
Buffer 23% 107% 97% -64% 12%
ADU construction has increased significantly over the past several years. In 2018 a total of 8 building permits were issued for new ADUs, 2019 included 14 such permits, 9 were issued in 2020,

Chapter 4.0 Vacant and Available Sites 4-4 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 and 14 in 2021. Through September 2022, a total of 16 building permits have been issued for new ADUs, which projects to 21 at the end of the year. The number of permits issued in 2020 were slightly lower than other years and this was due to the COVID-19 pandemic and construction was shut down for several months.

Excluding 2020, the average number of building permits issued for new ADUs is about 16.3 a year.

Projecting that over the next eight years would result in 131 ADUs assumed over the 2023-2031 planning period.

As described above, the City has created a robust ADU outreach program and approved financial incentives for such construction. These outreach and incentive programs have resulted in 225 residents expressing their intention to create an ADU on their property during the 2023-2031 planning period. These intentions have been made in writing and submitted to the city from property owners expressing their intention to create an ADU on their property either through new construction or conversion of an existing structure.

The ADUs that have been constructed in Monte Sereno, and are anticipated to continue, offer a wide range of housing options from smaller studio units less than 400 square feet to two-bedroom units that are 1,200 square feet in size and various combination of unit sizes and bedrooms counts in between. Additionally, existing ADUs are located throughout the city so units are not concentrated in certain areas. The 225 written intentions that have been made by property owners who intend to construct an ADU on their property in the next eight years are also located throughout the city, so future units will also be dispersed.

The ADU strategy has been developed to address the community’s most pressing housing needs, which involves the construction of affordable housing. While this ADU strategy could potentially fall short of providing market-rate housing for the community, City officials have adopted Senate Bill 9 (SB 9) development guidelines in line with the state law. However, there was very limited interest in SB 9 units expressed during the public outreach period when this plan was prepared.

Timeline and Outreach
The City of Monte Sereno’s efforts to facilitate ADU residential construction and to explore the redevelopment of potential sites in the community has been extensive.  In July 2022, the City Council reduced plan check and building permit fees by 50 percent for 225 properties where the owner expressed an interest in developing an ADU or an additional dwelling unit allowed under Municipal Code section 10.05.080 (SB-9 regulations). This permit incentive strategy will continue in the next cycle. Based on the fees for the average ADU building permit, this savings will be between $3,500 and $4,000. Over the 2023-2031 planning period, this will result in up to $900,000 is lost revenuein incentives provided by to the City, approximately 10% of total building permit revenue. The City Council has expressed their strong

Chapter 4.0 Vacant and Available Sites 4-5 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 commitment to the creation of ADUs, even though this program will be a significant cost to the City;
 Extensive, personalized outreach by City officials has resulted in 225 property owners providing written intentions to create an ADU on their property in the next eight years. Documentation is provided in the ElementAlthough 225 property owners within Monte Sereno have committed to constructing an ADU on their property within the next eight years, only 160 of these intended ADUs are included in the projected number of new units that will be constructed based on direction from the California Department of Housing and Community Development;  The City continues to review the ADU requirements to determine where constraints to ADU construction can be eliminated. Currently, the City Council is considering an amnesty program for ADUs as well as removing the requirement that the property owner reside in either the main house or the ADU. Currently, State law prohibits such an owner occupancy requirement for ADU constructed between 2020 and 2025; however, the City Council is considering to remove the owner occupancy requirement placed on ADUs constructed before this date and to remove the requirement for ADU constructed after 2025 in an effort to encourage property owners to plan for future ADUs without such a restriction;
 In May 2022, City officials sent letters to 20 property owners whose sites had been identified as possible candidates for rezoning to allow additional housing development. One property owner contacted City officials to discuss the option, but did not express any further rezoning interest, and the City received strong feedback from many residents against rezoning their neighborhood.

Only 0.06% of housing units in Monte Sereno is occupied by renters and substandard housing is less than 2%. Both conditions may limit resident’s interest in moving or selling, thereby limiting opportunities for rezoning and redevelopment;
 City Hall Site – 18041 Saratoga Los Gatos Road/Public Facilities; The Monte Sereno City Hall building site was analyzed for redevelopment, but was found to be impractical and with limited development potential. The site is less than half an acre in size. It is the only city-owned property, and it is in a Very High Fire Hazard Zone. It also fronts onto Highway 9 that is a state designated scenic highway. If this property were to be converted to another use the community would lose a needed public facility.

Like larger cities that can consolidate schools or utilize closed government buildings, there are no other public facility properties in Monte Sereno that could be converted to housing. There are no school properties in Monte Sereno. Students in Monte Sereno attend schools in the adjacent Saratoga, Los Gatos and Campbell school districts. Monte Sereno residents can use any of eight libraries in the Santa Clara County library system. None are located within the city.  First Baptist Community Church – 17765 Daves Avenue;
The First Baptist Community Church is the only house of worship within the City of Monte Sereno. In April 2022, City officials reached out to First Baptist Community Church to explore

Chapter 4.0 Vacant and Available Sites 4-6 EMC Planning Group Monte Sereno 6th Cycle Housing Element Update HCD Revisions June 2023 the possibility of developing underutilized church property for affordable housing. After consulting his congregation, Pastor McCarty corresponded with City officials to inform them that the church had no interest in such a project. Finding a new property for the church to relocate in another neighboring city its service area would be difficult.  Open Space Areas near Via Palomino, Via Del Sur, and Eaton Lane; Loma Serena Tract 3393 along Via Palomino recorded in 1964 created 85 single-family lots and three common lots. The common lots are for the collective use and benefit of the 85 single family lots and are not available for private building sites in accordance with the recorded tract map. The common areas are actively used by an equestrian center and encumbered with many Public Slope Easements. They are not viable for redevelopment based on the use and common ownership and are also irregularly shaped and practically land locked between the residential lots in the subdivision. Map 5970 along Via Del Sur and Eaton Lane recorded in 1977 creates 30 single family lots and one 5.95 acres Common Green open space lot intended for the exclusive use of the owners of lots 1 through 30. This land has significant slope and a large portion is encumbered by sanitary sewer easements as well as easements dedicated to the Santa Clara Valley Water District. It also appears as a Fault Rupture area in the City’s land data base. Therefore, this area is not viable for redevelopment.
 Miscellaneous Vacant and Underutilized Sites;
Becky Lane (APN 410-42-013) is a vacant 1.1 acres site which is zoned R-1-44, I DU/acre. The site can reasonably accommodate two housing units (one main house and one ADU) under current zoning. The site is currently served by wet and dry utilities and does not have any barriers to development.
17771 Vineland Avenue (APN 409-41-022) is a 1.3 acres site that is zoned R-1-44, I DU/acre.

The site is vacant and could accommodate two housing units (one main house and one ADU) under current zoning. The site is currently served by wet and dry utilities and does not have any barriers to development.

In summary, the City of Monte Sereno undertook extensive efforts to locate vacant, partially vacant, and underutilized sites available for housing development in the community. They were unable to locate even one property owner willing to redevelop their property. While the search for properties with redevelopment potential was disappointing, the response regarding ADUs provided strong evidence that fee reductions and public outreach regarding ADUs will likely result in enough ADU development to meet and surpass the projections of ADU development otherwise based solely on past trends and enough to meet lower income housing needs set forth the City’s RHNA in the 6th Cycle.

All of the fee reduction and outreach materials have been collected and placed in Appendix D, and the reader can refer there for details.