Monte Sereno City Council
May 7, 2024

AGENDA
City of Monte Sereno
Tuesday, May 7, 2024
City Council
7:00 PM
Monte Sereno City Council Chambers -
18041 Saratoga - Los Gatos Road,
Monte Sereno, CA 95030

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Page

CALL TO ORDER

PLEDGE OF ALLEGIANCE

ROLL CALL

ORDERS OF THE DAY

The Mayor, or a majority of the Council by vote, may change the order of business, except for public hearings on the agenda for a set time.

ANNOUCEMENTS

PRESENTATIONS

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 May 7, 2024 in the amount $186,504.38 Staff recommends the City Council approve the Warrant List Staff Report - SR-24-085 - Pdf
5 - 6

2. Approve the Minutes of the April 16, 2024 Regular City Council Meeting Staff recommends approval of the Minutes of the April 16, 2024 Regular City Council Meeting.

Staff Report -SR-22-148 - Pdf
7 - 12

UNFINISHED BUSINESS

3. Consideration of Daves Avenue “S” Curve Safety Measures Staff Recommends the City Council consider the recommendation of the Daves Avenue residents and the Better Streets Commission to improve the “S” Curve on Daves Avenue with (2) speed tables, a sidewalk and a speed feedback sign.

Staff Report - SR-24-083 - Pdf
Public Comments Recieved
13 - 22

PUBLIC HEARINGS

4. Adopt a Resolution to Amend the General Plan by Adopting the 2023- 2031 Housing Element (CEQA: Exempt, Guidelines sections 15303, 15332, 15061)
Staff recommends that the City Council adopt the draft resolution to 23 - 371

amend the General Plan by adopting the 2023-2031 Housing Element.

Staff Report - SR-24-084 - Pdf

NEW BUSINESS

5. Consider Adoption of a Resolution Declaring Hazardous Vegetation (Brush) a Public Nuisance
Staff recommends that the City Council adopt a resolution declaring hazardous vegetation (brush) a public nuisance.

Staff Report - SR-24-087 - Pdf
372 - 376

COMMITTEE/COMMISSION REPORTS
This time is set aside to allow Councilmembers serving on Council committees or appointed by the City to serve on the boards, commissions or committees of other agencies to present a verbal report on the activities of the respective boards, commissions or committees on which they serve. No discussion or action may be taken other than to place the matter on a future agenda.

Craig
Monte Sereno Youth Commission
Santa Clara County Library JPA
Ellahie
Cities Association – Board of Directors
Cities Association – Legislative Action Committee
Cities Association - Cities Selection Committee
Turner
West Valley Sanitation District

Wolsheimer
Silicon Valley Animal Control Authority
Santa Clara Valley Water District Commission
Association of Bay Area Governments
League of California Cities Peninsula Division
West Valley Mayors & Managers
Mayors of Santa Clara County
Mekechuk
Valley Transportation Authority Policy Advisory Committee West Valley Clean Water Authority
West Valley Solid Waste Management Authority
Silicon Valley Clean Energy Authority

COUNCIL MEMBER COMMENTS
This time is set aside to allow Councilmembers to make brief announcements or reports on the Councilmember’s own activities. No discussion or action may be taken other than to place the matter on a future agenda.

CITY MANAGER’S REPORT

FUTURE AGENDA ITEMS
This time is set aside to allow Councilmembers to make a specific request for an item to be placed on a future agenda. No discussion or other action may be taken.

RECESS TO CLOSED SESSION

6. CONFERENCE WITH LEGAL COUNSEL- EXISTING LITIGATION
Government Code Section 54956.9
Case Name: Padgett v. Curtis Wright, et al.- United States District Court, Northern District of California- San Jose Division
Case No.: 5:04-cv-03946
Staff Present: City Attorney, City Manager

RECONVENE TO OPEN SESSION

CLOSED SESSION REPORT

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 - May 07 2024
Agenda Heading: CONSENT CALENDAR
Staff Contact: Reynold Samoranos,
Department: Finance Manager
Title: Approve Warrant List Dated May 7, 2024 in the amount $186,504.38 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 this agenda and this report appear on the City's website.

Attachments:
2024 05 07 Warrants List

CITY OF MONTE SERENO

REGISTER OF ACCOUNTS PAYABLE
AS OF THESE DATES:

May 7, 2024
CHECK
NO. TO FOR AMOUNT ACCOUNT
NO.
20815 Complete Drywall
Services
Upgrade front and back lights City Hall ($1590) and Clean sidewalk from Winchester st dig 3 holes and install 3 new posts ($700)
2,290.00 01-860
12-850
20816
Metropolitan
Transportation
Commission
MTC's Pavement Management Technical Assistance Program
(P-TAP) 4902-P-TAP 25 13,000.00 01-845
20817 Alana Consulting, LLC Hourly Services (03/25/2024 to 05/05/2024) 6 Weeks ($9488) and e-Permit Development ($8970) 18,457.50 01-765
20818 Ana Pereda Refund #2024-3031 - 17576 Via Sereno 565.00 01-236 20819 Bay Area News Group Classified Ad for Monte Sereno Community Center Project 934.96 01-565 20820 BMI Imaging Systems Web Hosting - April 2024 225.00 01-715 20821 City of Campbell -
Finance Department
West Valley Solid Waste Management Authority 4th Quarter FY 2024 7,023.93 01-522
20822 Corodata Shredding Inc. Garbage Recycling Container Rental 10.00 01-522 20823 D&M Traffic Services 18"x18" OM Markers Yellow and 24"x24" Dumpting Prohibited signs 750.91 05-870
20824 Heidi's Commercial
Cleaning Weekly Cleaning Service City Hall plus cleaning supplies 750.00 01-860 20825 O'Grady Paving, Inc 2023 Annual Pavement Improvement 40,129.10 01-845 20826 Pacific Gas & Electric City Hall ($540); City Streets & Hwy Lighting ($437); and Rose Andrews Lighting District ($52) 1,029.28
50-945
05-890
01-705
20827 Prime Tree Care, Inc.

Withey Rd; Clean 200 ft of dirt and bushes along Beck Ave; Clean dirt sides of Ridgecrest Ave coners of Oakhurst Dr; Winchester Blvd.
8,850.00 05-870
20828 RICOH USA, INC. Copier Rental for City Hall 480.23 01-715 20829 Ridley Master Padgett vs. City of Monte Sereno Case 2,351.50 01-427 20830 San Jose Water Water service for City Hall ($109) and Apr2024 - Water service for Annex Building ($131) 239.81 01-705
20831 Town of Los Gatos
Finance Department Police Services April 2024 89,270.00 03-545 20832 Vision Service Plan (CA) April 2024 Vision Care Insurance 147.16 01-636 TOTAL WARRANT LIST $186,504.38

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.
1 of 1 Page 6 of 376

STAFF REPORT
Meeting: City Council - May 07 2024
Agenda Heading: CONSENT CALENDAR
Staff Contact: Gloisy Gonzalez-Langarica, City Clerk
Department: City Clerk
Title: Approve the Minutes of the April 16, 2024 Regular City Council Meeting Recommendation(s):

Staff recommends approval of the Minutes of the April 16, 2024 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:
04-16-24 Regular Meeting Minutes DRAFT

MONTE SERENO CITY COUNCIL MEETING MINUTES

REGULAR MEETING
7:00 p.m.

April 16, 2024

MEETING CALLED TO ORDER
At approximately 7:04 p.m., Mayor Wolsheimer called the meeting to order.

PLEDGE OF ALLEGIANCE
Los Gatos-Monte Sereno Sargeant Hoyt lead the Pledge of Allegiance.

ROLL CALL
Present – Chambers: Councilmember Turner, Councilmember Ellahie, Councilmember Mekechuk, Vice Mayor Craig and Mayor Wolsheimer
Present – Remote: None

Absent: None
Staff: City Engineer/Public Works Director Jordan, City Planner Perkins, City Clerk Gonzalez-Langarica, City Manager Leonardis, City Attorney Powell
Staff – Remote: Finance Officer Samoranos

ORDERS OF THE DAY
Councilmember Mekechuk suggested that Item #6 under Public Hearings go right after tonight’s presentation in consideration of the public members attending this evening meeting for that item.

The Council agreed.

ANNOUNCEMENTS
None.

PRESENTATIONS

1. Monte Sereno Police Services Presentation Report July - December 2023 by Los Gatos-Monte Sereno Sargent Hoyt and Chief of Police Jamie Field.

PUBLIC HEARINGS

6. Application 2023-3059 for a Site Development Permit, Variance, and Tree Removal Permit to construct a new approximately 2,993 square foot two-story house with front, side

corner, and rear yard setback variance and to remove one Japanese Maple Tree at 17272 Nagpal Court. (CEQA: Exempt, Guidelines sections 15302, 15303) City Planner Perkins provided a staff report and answered questions from the Council.

Discussion ensued.

Mayor Wolsheimer opened the item for Public Hearing.

Public Comment:
• Architect Jeans
• Applicant Polyakov
• Resident Gupta
• Resident Pandita
• Resident Tkachuk
• Designer Cheng
• Architect Jeans
• Resident Gupta
With no one else wishing to speak, Mayor Wolsheimer closed the Public Hearing.

MOTION: Motion by Councilmember Turner to Approve a Site Development Permit, A Variance, and a Tree Removal Permit (2023-3059) for the Property Located at 17272 Nagpal Court (APN 409-34-052). Seconded by Vice Mayor Craig.

VOTE: Motion passed. (5-0-0)
Mayor Wolsheimer requested a short (6 minute) recess before proceeding with the meeting.

Returning from the recess, Mayor Wolsheimer suggested Item #8 under New Business go next.

The Council agreed.

NEW BUSINESS

8. Consideration of options for the Community Center Project and including Award of Contract to S & H Construction Inc. for the Monte Sereno Community Center Project City Engineer/Public Works Director Jordan provided a staff report and answered questions from the Council.

Discussion ensued.

Mayor Wolsheimer opened the item for Public Comment.

Public Comment
• Resident Massei
• Former Mayor Allan
• Former Mayor Lawler

• Resident Shannon
With no one else wishing to speak, Mayor Wolsheimer closed Public Comment.

MOTION: Motion by Councilmember Mekechuk to reject all bids Seconded by Vice Mayor Craig.

VOTE: Motion passed. (5-0-0)
The council provided staff direction to work with the architect redesign the project and return to Council with alternatives or new designs, including a financial forecast of the City’s reserves at the completion of the project, a list of what the building should be used for, and a poll of at least 100 residents.

ORAL COMMUNICATIONS
None.

WRITTEN COMMUNICATIONS
None.

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

2. Approve the Minutes of the April 02, 2024 Regular City Council Meeting

3. Approve Warrant List Dated April 16, 2024 in the amount $62,007.84

4. Accept the Treasurer's Report for the Period Ending February 29, 2024

5. Ordinance Amending the Chapters 6.10 and Title 9 of the Monte Sereno Municipal Code to Comply with Senate Bill 1383
Mayor Wolsheimer opened the Consent Calendar for Public Comment. With no one wishing to speak, Mayor Wolsheimer closed Public Comment.

MOTION: Motion by Councilmember Mekechuk to approve Item #2 and Item #5 on the Consent Calendar. Seconded by Councilmember Ellahie.

VOTE: Motion passed. (5-0-0)
MOTION: Motion by Councilmember Ellahie to approve Item #3 and Item #4 on the Consent Calendar. Seconded by Vice Mayor Craig.

VOTE: Motion passed. (4-0-1- Abstain: Mekechuk)

UNFINISHED BUSINESS

7. Discuss and Provide Direction to Staff Regarding a Possible Rebate Program for the Removal of Hazardous Trees
City Planner Perkins provided a staff report and answered questions from the Council.

Discussion ensued.

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

Staff were provided with direction.

NEW BUSINESS

9. Council Direction Regarding Proposed Bylaws for the Cities Association of Santa Clara County City Attorney Powell provided a staff report and answered questions from the Council.

Discussion ensued.

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

Staff were provided with direction.

COMMITTEE/COMMISSION REPORTS
Vice Mayor Craig stated nothing to report.

Councilmember Ellahie stated nothing to report.

Councilmember Turner stated nothing to report.

Councilmember Mekechuk reported West Valley Solid Waste Management Authority will be meeting next week. He shared there may be a 19.1% increase in the collection cost. Councilmember Mekechuk reported that Silicon Valley Clean Energy Authority will be attending the Cal CCA Conference over the next couple of days in Downtown San Jose, which he too will be attending.

Valley Transportation Authority Policy Advisory Committee is scheduled to meet next month. West Valley Clean Authority is going to meet in approximately two weeks.

Mayor Wolsheimer reported that at the Valley Water Commission meeting there was discussion on the increase of 12.9% in the coming fiscal year in the water rates. There was a decrease from an initial 14.5% to 12.9%.

COUNCILMEMBER COMMENTS
Vice Mayor Craig inquired about the collection day from Silicon Valley Solid Waste. It was confirmed that they don’t just collect on one single day; instead, it’s broken up into three collection days. The Vice Mayor suggested this information should be shared with the residents through the City’s website.

Councilmember Mekechuk complimented the publication from Los Gatan, on an article published about Monte Sereno’s ADU Program.

FUTURE AGENDA ITEMS
None.

Mayor Wolsheimer opened the item for Public Comment. With no one wishing to speak, Public Comment was closed. City Council adjourned to Closed Session at approximately 9:49 p.m.

RECESS TO CLOSED SESSION

11. CONFERENCE WITH LEGAL COUNSEL- EXISTING LITIGATION
Government Code Section 54956.9
Case Name: Padgett v. Curtis Wright, et al.- United States District Court, Northern District of California- San Jose Division
Case No.: 5:04-cv-03946
Staff Present: City Attorney Powell, City Manager Leonardis

RECONVENE TO OPEN SESSION
The City Council reconvened to Open Session at approximately 10:17 p.m. with Mayor Wolsheimer, Vice Mayor Craig, Councilmember Mekechuk, and Councilmember Ellahie present. (Councilmember Turner left the meeting at approximately 9:51 p.m.)

CLOSED SESSION REPORT
Mayor Wolsheimer stated that there were no reportable actions.

ADJOURN
Mayor Wolsheimer adjourned the meeting at approximately 10:17 p.m.

Evert Wolsheimer, Mayor
ATTEST:
____________________________________
Gloisy Gonzalez-Langarica, City Clerk

STAFF REPORT
Meeting: City Council - May 07 2024
Agenda Heading: UNFINISHED BUSINESS
Staff Contact: Daryl Jordan, City Engineer
Department: City Engineer
Title: Consideration of Daves Avenue “S” Curve Safety Measures Recommendation(s):

Staff Recommends the City Council consider the recommendation of the Daves Avenue residents and the Better Streets Commission to improve the “S” Curve on Daves Avenue with (2) speed tables, a sidewalk and a speed feedback sign.

Background Information:

The Daves Avenue “S” Curve Project originated from multiple safety concerns. Several vehicular accidents have occurred from westbound traffic entering the bottom of the curves at high speeds. As a result, public mailboxes, pavement and curbs have been damaged.

Fortunately, no serious injuries to drivers, pedestrians or cyclists have occurred.

As a result of past incidents, additional concerns were discussed regarding traffic calming mechanisms to reduce speeds, protect pedestrians and cycling. Staff contracted with a reputable traffic engineering consultant, Kimley Horn and Associates, to design and provide a multitude of options to enhance safety along the corridor. These measures included striping to narrow the width of travel lanes, striped bike lanes, vertical bollards, zebras (bumps) and signage. Any of those measures or a variety of measures would improve the current condition.

Per City Council direction on April 2, 2024, staff scheduled meetings with the Council appointed Daves Avenue Ad hoc Committee (Councilperson Turner and Mekechuk) and the Better Streets Commission. Staff has also met with adjacent property owners in January and March to receive comment and input as previously reported to Council. Feedback from the three groups is summarized below.
 Local Neighborhood
Two outreach events were hosted at City Hall. The first event took place in early January and the second meeting was held on the evening of March 4th. The first meeting held had 4 participants and the second meeting registered sixteen local residents including the local school principal. Each element of the safety plan was presented to the attendees. Every attendee contributed to the discussion and

commented on which safety elements they were in favor of. The following poll summarizes their feedback:
o Speed Tables 100% Support
o Bollards 100% Oppose
o Extension of Sidewalk 100% Support
o Flashing Speed Sign 100% Support
o Striping Majority Opposed (thought not to be effective) Additional input outside of the “S” Curve scope included interest in adding an additional stop sign at Equestrian Way, which would require a warrant study.  Daves Avenue Ad hoc Committee
Staff met with the Ad hoc committee on April 11th.

Member Turner’s Comments:
o Staff should prioritize improvements in phases.
o The project needs to stay within the approved budget of $60,000. o Staff should acknowledge and accept input from residents.

Member Mekechuk’s Comments:
 The emphasis of the improvements are for speed reduction and public safety.  Staff should consider all aspects of the Kimley Horn design as previously provided to City Council.
 A phased approach is acceptable with the multiple elements within the Kimley Horn design including multicolored bollards that can be switched out per public direction.
 Striping and lane delineators (zebras/bumps) are an effective solution to reduce speed and direct traffic out of the bike lanes.
 The installation of lane delineating reflectors (white/red) could be used for driver feedback and lane guidance.
 Better Streets Commission
Staff met with the Better Streets Commission after the Ad hoc meeting earlier in the day on April 11th. Three local residents attended the Better Streets Commission meeting including Council person Mekechuk speaking as a resident. Mr. Mekechuk submitted a detailed outline of the overall approach and implementation of the various elements of the Kimley Horn plan.

Better Streets Commission Comments:
 Staff should not include the bollard option in the construction plan.  Bike lanes may not actually contribute to the safety issues that are intended to be addressed by the project.
 Speed tables will work but noted they may cause a jarring effect on traffic traveling too fast.
 Staff should prioritize the local residents’ feedback including as much sidewalk the project can afford.

Analysis:

Four outreach events were successfully scheduled and held. Two local resident meetings, one Ad hoc meeting and one Better Streets Commission meeting. Each meeting discussed the various options incorporated in the Kimley Horn Engineering design. Additional requests were made by residents and supported by the Better Streets Commission including sidewalks, Speed Tables and a Stop sign along the corridor.

Staff realizes that not all elements may be constructed within the budget limits approved by Council. Therefore, a phased approach would be the most logical strategy to implement any traffic safety measures approved for this project.

All three groups supported the importance of the feedback from the residents. The elements supported by the residents are sidewalks, speed tables and a flashing feedback speed sign.

Staff has the ability to bid the project with the addition of alternative bid items which could include the option of additional items from the Kimley Horn plan, if budget allows. This project can also embrace a phased approach and continue to add elements each year as we see the effectiveness or lack thereof of the initial phases.

If directed by City Council, this project can be added to the annual city pavement project this year, to reduce costs.

Fiscal Impact:

The 2023-2024 City Budget includes $60,000 for the construction of this project. The estimated costs of all the Kimley Horn elements are projected to cost approximately $70,000, which is above the approved budget. The breakdown of the costs is attached to this report. The addition of Curb Gutter and Sidewalk costs are approximately $250 per linear foot which would limit the amount that can be constructed based on the priority of elements selected. The speed tables are approximately $10,000 each and the speed feedback sign may cost approximately $15,000. A phased approach, prioritizing the elements directed by Council may allow the construction cost to land within the existing budget allocation.

Alternatives:

1. Choose a different priority of elements for phase one to incorporate and bid with the annual city pavement program.

2. Choose to not move forward with the safety project at this time.

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:

Daves Ave S-Curve_Order of Magnitude OPCC

Item Item Description Quantity Unit Unit Cost Total Cost 1 Remove Existing Striping and Pavement Markings 1 LS $5,000.00 $5,000 2 Furnish and Install Break-Away Post Per Town of Los Gatos Standard Plan No. ST-239 - ST241 20 EA $450.00 $9,000 3 Furnish and Install New R26(CA) Sign 8 EA $250.00 $2,000 4 Furnish and Install New R81A(CA)Sign 4 EA $100.00 $400 5 Furnish and Install New R81B(CA) Sign 4 EA $100.00 $400 6 Furnish and Install New W1-1(L) Sign 2 EA $300.00 $600 7 Furnish and Install New W1-1A(L)(10) Sign 2 EA $300.00 $600 8 Furnish and Install New W1-6(L)Sign 2 EA $300.00 $600 9 Furnish and Install New W1-6(R)Sign 2 EA $300.00 $600 10 Furnish and Install New W1-8(L)Sign 7 EA $300.00 $2,100 11 Furnish and Install New W13-1P(10)Sign 7 EA $300.00 $2,100 12 Furnish and Install New W1-8(R)Sign 6 EA $300.00 $1,800 13 Furnish and Install New W1-3(R)Sign 2 EA $300.00 $600 14 Furnish and Install New W4-1(CA)(10)Sign 2 EA $300.00 $600 15 Furnish and Install Green K-71 Delineator Post or Approved Equal (color per City Engineer) 39 EA $250.00 $9,750 16 Furnish and Install Black and White Zicla Zebra 9 or Approved Equal 34 EA $250.00 $8,500 17 Furnish and Install Diagonal Buffer Hatching 140 SF $1.00 $140 18 Install Two-directional No Passing Pattern (Detail 22) per Caltrans Standard Plan A20A 650 LF $2.00 $1,300 19 Install Right Edge Line Pattern (Detail 27B) per Caltrans Standard Plan A20B 2,975 LF $1.00 $2,975 20 Install Median Island Pattern (Detail 29) per Caltrans Standard Plan A20B 170 LF $1.00 $170 21 Furnish and Install Painted Optical Speed Markings 186 LF $1.00 $186 22 Furnish and Install 8" Yellow Diagonal Striping Angled at 45 Degrees and Spaced 10' On Center 250 SF $1.00 $250
23 Furnish and Install Solar Power LED Speed Feeback Sign SpeedCheck-15 by Carmanah or Approved Equal on New 10' 1-B pole 1 EA $15,000.00 $15,000 Striping and Signage Subtotal $64,700

STRIPING AND SIGNAGE

BASE BID
August 2023
Project No. XX
Daves Avenue S-Curve Project
City of Monte Serano
Bid List
K:\SND_TPTO\195525001 ‐ Daves Ave S‐Curve\Cost Estimate\195525001 ‐ Daves Ave S‐Curve ‐ 100% Bid Item List\Daves_Ave_S_Curve_100% OPCC.xlsx ‐ Daves Ave ‐ Summary      8/8/2023 Page 17 of 376 5:55 PM      SHEET 1/1 From: Peter Goll
To: Gloisy Gonzalez-Langarica
Subject: Daves ave s curve
Date: Tuesday, May 7, 2024 5:42:29 PM
Dear City Council,
My name is Peter Goll and I live by the S curve at 18240 Daves Avenue.

I walk my dogs through the S curve on a regular basis. I am getting more and more concerned of walking through the S curve due to aggressive drivers, cars hugging the corners and blind spots.

I believe this presents a significant liability and I would like City Council to:

Take a phased approach to traffic calming.

1. Start with passive items, including striping, signage and “zebras”. The cost should be within your budget for 2024.

2. If speeds are still high then implement an LED speed sign ($15,000).

3. If speeds continue to be high, implement speed tables for $30,000.

4. Long term, please build a side walk through the S curve.

Thank you.

Sincerely,
Peter Goll

From: Bryan McCollam
To: Gloisy Gonzalez-Langarica; Katey McCollam
Subject: Proposed bike lanes and cones on Daves Ave
Date: Tuesday, May 7, 2024 2:19:23 PM
To the City of Monte Sereno,
My wife and I STRONGLY oppose the proposed plan to put bike lanes and cones on Daves Ave. We are residents of 17650 Daves Ave and this would be a complete eye sore to our front house. In addition, I believe it would create more congestion to our already busy street. The bikers are loud in the early AM disturbing our neighborhood...we don't need to encourage more bikers down Daves. We do not need to add more craziness to our neighborhood! Thank you for the consideration,
Bryan and Kathleen McCollam
Daves Ave.

From: Laura Brossart
To: Gloisy Gonzalez-Langarica
Subject: Consideration of Daves Avenue “S” Curve Safety Measures Date: Tuesday, May 7, 2024 1:06:43 PM
Dear Monte Sereno Town Council,
My husband, Rich, and I are unable to attend the Town Council meeting this evening.

We have lived and raised our family on Kavin Lane in Monte Sereno for the last 32 years. Our family cycles, runs and walks our beautiful streets all around Monte Sereno and Los Gatos. We are in full support of our neighbors to keep Daves Avenue safe. We agree that installing speed humps, a sidewalk and a stop sign (if needed) on the Daves Avenue “S” curve is important for the safety of our residents.

Thank you,
Laura and Rich Brossart

From: Liz Lawler
To: Evert Wolsheimer; Rowena Turner; Javed Ellahie; Burton Craig; Bryan Mekechuk Cc: Gloisy Gonzalez-Langarica; Steve Leonardis; Daryl Jordan Subject: Item #3, Unfinished Business- S Curve
Date: Tuesday, May 7, 2024 9:42:12 AM
Dear Mayor and Council,
It is clear we have a dangerous situation Daves Avenue that needs to be addressed, and our residents have made it very clear what they would like to see done. Therefore, as Chair of the Better Streets Commission, I respectfully ask Council to move forward with the recommendation proposed in the Staff Report to install Phase 1 of the Daves S Curve project: two speed tables, a speed sign, (and budget allowing, as much sidewalk as possible). Given the relatively low cost of installation, this phase of the project is a simple, straightforward and expedient remedy to a dangerous situation.

While concerns about the impact to cyclists were raised at the BSC meeting, the commission and staff concluded that the two speed tables would be installed on sections of Dave where there is ample room for cyclists on both sides. However, the City would use the several months post-installation to determine the effectiveness of the speed tables and whether they pose any issues.

If we do nothing, nothing gets done.

Thank you,
Liz Lawler
Chair
Better Streets Commission
City of Monte Sereno

1 Gloisy Gonzalez-Langarica
From: Laurie Prestine <[email protected]>
Sent: Monday, May 6, 2024 9:40 AM
To: Gloisy Gonzalez-Langarica
Subject: No on Green Cones on Daves Avenue
Dear City of Monte Sereno,
I absolutely do not want any hideous green cones on Daves Avenue. I have asked my neighbors and I can not find one person who lives in our community who thinks this is a good idea.

I am an avid bike rider and have lived here for 20+ years. I often ride on Daves Avenue to get to my friends houses or to get some exercise. Speed humps, sidewalk and a stop sign (if needed) get my vote.

Thank you for keeping our community safe and beautiful. Please let me know you have received this email and I am on record with my no vote. Thank you!
Best regards,
Laurie Prestine
Via Palomino MS 95030

STAFF REPORT
Meeting: City Council - May 07 2024
Agenda Heading: PUBLIC HEARINGS
Staff Contact: Diana Perkins, City Planner
Department: City Planner
Title: Adopt a Resolution to Amend the General Plan by Adopting the 2023- 2031 Housing Element (CEQA: Exempt, Guidelines sections 15303, 15332, 15061)
Recommendation(s):

Staff recommends that the City Council adopt the draft resolution to amend the General Plan by adopting the 2023-2031 Housing Element.

Background Information:

The Housing Element is part of the City’s General Plan and identifies policies and programs to meet the housing needs of the city’s current and future residents. Housing elements are written and adopted by local governments. However, housing elements are the only portion of a city’s General Plan that must be certified by the State (Department of Housing and Community Development - HCD). HCD reviews and certifies that each jurisdiction’s Housing Element meets all the requirements of State law (Government Code Sections 65580-65589.8). Under current state laws, housing elements are updated every eight years to coincide with an eightyear planning period.

Over the past two years, staff and the City’s consultant team (initially EMC Planning Group and most recently Metropolitan Planning Group) have worked to update the City’s Housing Element for the 6th Cycle 2023-2031 planning period. This process has included extensive community/public meetings, multiple revisions, and meetings with HCD staff. A summary of the community and public meetings on topics related to the 6th Cycle Housing Element are listed below:
 February 24, 2022 – City Council study session to provide an overview of the 6th cycle Housing Element process and schedule.
 April 19, 2022 – City Council meeting to discuss sites inventory.  April 23, 2022 – 6th Cycle Housing Element Community Workshop meeting.  May 24, 2022 – Joint Meeting with the City Council and Site and Architectural Commission to discuss sites inventory.
 June 21, 2022 – City Council meeting to discuss ADU incentives/fee reductions and also to review draft programs.

 July 21, 2022 – Special City Council meeting where the Ad Hoc Housing Element committee provided an update on their plans to incentive ADU construction.

Additionally, the City Council approved a resolution at this meeting to offer a building permit fee reduction for ADU construction.
 August 21, 2022 – City-wide Picnic where information was available on the 6thCycle Housing Element update and feedback was received from the community. Additionally, West Valley Community Services facilitated a panel discussion where members of the community shared their experiences with housing insecurity, housing barriers, and living in an ADU.
 September 6, 2022 – City Council meeting to discuss removal of ADU development constraints of owner occupancy requirements and a potential amnesty program. Also, the Draft 6th Cycle Housing Element was reviewed at this meeting.  September 20, 2022 – Joint Meeting of City Council and Site and Architectural Commission to ADU discount outreach plans.
 November 1, 2022 – City Council meeting where an ordinance was introduced to remove owner occupancy requirements for ADUs, create an 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 provide an update on the status of the 6th Cycle Housing Element update.
 January 17, 2023 – City Council meeting to review comments received by HCD on the Draft 6th Cycle Housing Element.
 January 31, 2023 – Joint City Council and Site and Architectural Commission meeting to adoption of the revised 6th Cycle Housing Element.
 June 6, 2023 – City Council meeting to discuss comments received from HCD and provide direction on revisions to the 6th Cycle Housing Element.  June 20, 2023 – City Council meeting to discuss the Affirmatively Further Fair Housing requirements and Multi-family zoning requirements of the 6th Cycle Housing Element.  July 11, 2023 – City Council meeting to review the revised 6th Cycle Housing Element and direct staff to resubmit to HCD for review.
 August 1, 2023 – City Council meeting to discuss and provide direction on potential sites for SB10 re-zoning.
 August 29, 2023 – Joint meeting of the Site and Architectural Commission and City Council to discuss changes to the SB9 requirements.
 September 19, 2023 – City Council meeting to review and provide direction on changes to the SB9 requirements.
 October 4, 2023 – Site and Architectural Commission meeting review and provide recommendation on revised SB9 ordinance.
 October 17, 2023 – City Council meeting to introduce an ordinance on revised SB9 requirements.
 November 7, 2023 – City Council meeting to adopt an ordinance on revised SB9 requirements.

 December 19, 2023 – City Council meeting to provide an update on the status of the 6th Cycle Housing Element.

Based on feedback from the community, City Council, and HCD comments, the City has prepared five public drafts of the 6th Cycle Housing Element. An overview of the Housing Element revision process is provided below:

Event Date
Draft Housing Element published for 30-day
public review and comment period
August 9, 2022
Submitted the draft Housing Element to HCD
for their initial 90-day review
October 11, 2022
Comment letter received from HCD January 9, 2023
Second draft Housing Element published for
7-day public review and comment period
January 24, 2023
Joint meeting of the City Council and Site
and Architectural Commission where second
draft Housing Element was adopted
January 31, 2023
Submitted the second draft Housing Element
to HCD for their initial 60-day review
February 1, 2023
Comment letter received from HCD March 31, 2023
Third draft Housing Element published for 7-
day public review and comment period
July 13, 2023
Submitted the third draft Housing Element to
HCD for their initial 60-day review
July 24, 2023
Comment letter received from HCD September 22, 2023
Fourth draft Housing Element published for
7-day public review and comment period
February 14, 2024
Submitted the fourth draft Housing Element
to HCD for their initial 60-day review
February 21, 2024
Revised fourth draft Housing Element
published for 7-day public review and
comment period
April 5, 2024
Received letter from HCD stating the revised
fourth draft Housing Element in in substantial
compliance with State Housing Law
(Attachment 1)
April 22, 2024
Analysis:

Housing Element Overview
The Housing Element is the City’s plan to meet the housing needs of everyone in the community. The document is wide-ranging and includes an assessment of housing needs,

assessment of fair housing, sites inventory, constraints analysis, energy conservation analysis, and policies and programs. One of the most important components of any housing element is the Regional Housing Needs assessment (RHNA). The RHNA is the target number of housing units that the City must plan for during the 6th Cycle 2023-2031 planning period. As shown in the table below, the City’s total RHNA for the 2023-2031 cycle is 193 units and further divided into income categories based on the area median income (AMI) and classified as Very Low, Low, Moderate, and Above Moderate Income. Although the City does not need to actually build these housing units, the City’s Housing Element must provide the framework for the units to be built by putting in place the proper zoning, policies, and programs as well as addressing any constraints to the production of housing.

Very Low
Income Units
Low Income
Units
Moderate
Income Units
Above Moderate
Income Units
Total Units
53 30 31 79 193
The Housing Element includes the strategies and supporting programs to meet the RHNA requirements through the following housing types:

Very Low
Income Units
Low Income
Units
Moderate
Income Units
Above
Moderate
Income Units
Total Units
Housing
Progress to
Date (Units
approved
since
7/1/2023)
5 0 0 5 10
ADUs 48 48 48 16 160
JADUs 2 3 2 1 8
ADU
Amnesty
3 3 3 1 10
SB9 3 2 5 10
Vacant Sites 2 0 0 2 4
Total 63 56 53 30 202
Summary of Revisions in the Fourth Submittal
At the December 19, 2023 City Council meeting, staff presented a status update on the Housing Element that included a summary of how the comments from the September 22, 2023 HDC letter were being addressed. Attachment 2 includes a detailed summary of the revisions which were submitted to HCD on February 21, 2024.

Staff and the City’s consultants were able to meet with HCD staff for a mid-cycle review on April 4, 2024. At that meeting HCD staff requested additional minor modifications to address their remaining concerns. These revisions are summarized below:
 Chapter 2
o Added a new program, to commit to a mid-cycle review in late 2027 to assess the progress and effectiveness of specified programs.
 Chapter 4
o Reduced the number of anticipated ADU amnesty units to 10 from a previously project 24. As this was within the previously planned buffer, no other changes to the RHNA projections were needed.
o Updated Figure 4-1 to reflect the Sites Inventory.
 Appendix C
o Added information in the Site Development Permit Analysis to describe how staff assists customers through the discretionary review process to help ensure project compliance and approval.

The above changes were made and published for the required seven-day public comment period on April 5, 2024. HCD staff were able to consider these changes in the fourth submittal review that was pending and issued a letter stating the revised document was in substantial compliance with State housing laws on April 22, 2024 (Attachment 1).

The fourth submittal of the Housing Element, with changes tracked and highlighted, is available online at: https://www.montesereno.org/2361/Housing-Element-Update-2023-2031.

California Environmental Quality Act:

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

None of the exceptions to the use of a categorical exemption, as identified in CEQA Guidelines section 15300.2, applies to this project:
 The project is not located in a sensitive environment such that the project may impact an officially mapped and designated environmental resource of hazardous or critical concern;

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

Public Noticing:

The City of Monte Sereno's City 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. Notification of this meeting was also published in the San Jose Mercury News, a newspaper of general circulation, on Saturday, April 27, 2024.

On April 30, 2024, the revised 6th Cycle Housing Element was posted on the Housing Element website at https://www.montesereno.org/2361/Housing-Element-Update-2023-2031 Attachments:

1. HCD Letter of Substantial Compliance

2. Responses to HCD Comments Submitted 2-21-2024

3. Resolution - Housing Element Adoption

4. Draft Resolution Attachment A - Monte Sereno 2023-2031 Housing Element

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
April 22, 2024
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) Revised Draft Housing Element Thank you for submitting the City of Monte Sereno’s (City) revised draft housing element update received for review on February 22, 2024 along with revisions received on April 17, 2024. The revisions were made available to the public for seven days prior to review. Pursuant to Government Code section 65585, the California Department of Housing and Community Development (HCD) is reporting the results of its review. Our review was facilitated by a conversation on April 4, 2024 with yourself; Diana Perkins, City Planner; Asher Kohn, the City’s Consultant; and Geoff Bradley, the City’s Consultant.

The revised draft element, including revisions, meets the statutory requirements of State Housing Element Law (Gov. Code, § 65580 et seq). The revised draft with revisions addresses the findings in HCD’s September 22, 2023 review. The housing element will substantially comply with State Housing Element Law when it is adopted, submitted to, and approved by HCD, in accordance with Government Code section 65585.

Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City 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.

Pursuant to Government Code section 65583.3, subdivision (b), the City must utilize standards, forms, and definitions adopted by HCD when preparing the sites inventory and submit an electronic version of the sites inventory. While the City has submitted an

Steve Leonardis, City Manager

electronic version of the sites inventory, if changes occur, any future re-adopted versions of the element must also submit the electronic version of the sites inventory.

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

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

HCD appreciates the City’s hard work and dedication provided in the housing element update and review and looks forward to receiving the City’s adopted housing element. 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

Response to HCD Informal Reviews, Page 1
Responses to September and November HCD Reviews
The consultant team has had informal conversations with HCD about changes required to substantially comply with housing element requirements. There were two rounds of conversations, in September and November, where the consultant team responded to revision requests by HCD. This table describes the responses modifications made to the Monte Sereno Housing Element in response to informal revision request on September 22, 2023, and November 20, 2023. All page numbers are from the Track Changes version of the February 2024 Draft Housing Element.

The columns are as follows:

Revision Request
HCD statement describing a revision required to substantially comply with housing element law.

Corresponding Modifications to the Housing Element
The consultant team’s understanding of required changes.

Response (September)
The initial track changes made in response to the first round of HCD informal requests.

HCD Compliance (Informal)
HCD’s informal statement on whether or not the September response was enough to substantially comply with housing element requirements.

Response (November)
The secondary track changes made in response to HCD’s informal understanding of compliance. These track changes are highlighted in the February 2024 Draft Housing Element. Page 31 of 376 Response to HCD Informal Reviews, Page 2
Comment
#
Revision Request
Corresponding
Recommended Modifications
to the Housing Element
Response
(September)
HCD Compliance
(Informal)
Response
(November)
Inventory of land suitable and available for residential development 1 Progress toward the Regional Housing
Need Allocation (RHNA): The element now
indicates (Table 4-3) that ten units that have
been built or are under construction since
the start of the projection period but should
also demonstrate their affordability and
availability in the planning period. For
affordability, the element should assign
these units to the various income groups
based on actual sales price, rent level or
other mechanisms ensuring affordability
(e.g., deed restrictions). For availability, the
element should discuss status, remaining
steps, and any known barriers to
development in the planning period.

Clarified in document that 10
“Pipeline” projects are 2
houses at Above Moderate
Income and 8 ADUs (broken
down into 5 VL, 3 Above Mod)
in section “Housing Progress to
Date.”
Re-organized Table
4-3 to follow format
of “4.4 Site
Inventory” section.

Moved “Housing
Progress to Date”
subsection under
“4.4 Site Inventory”
on page 4-7 and
added new Table 4-
4 to describe
affordability levels
and determinations
for all projects.

No Fixed (page
4-7)
2 Adequate Sites and Accessory Dwelling
Units (ADU): As noted in the prior review,
the element must include robust analysis or
utilize alternative strategies to fulfill the
RHNA entirely with ADUs. While the
element now discusses past trends and
anticipated affordability, it should still
address other relevant factors. Specifically,
the element states that 93 percent of past
ADUs were made available for rent but
should incorporate this information into ADU
assumptions for the planning period.

Clarified how our relevant
factors (such as 93 percent of
past ADUs made available for
rent) go into assumptions that
brought us from 225 residents
expressing intention for ADU to
160 “claimed” ADUs in section
“Accessory Dwelling Units”
New section “ADUs
and RHNA Strategy”
beginning on page
4-10 describes
analysis and
includes new
adjustment factors
(Table 4-6).

No Added 2023
to Table 4-5
and narrative,
noted that
year is not
complete.

Added more
narrative in
page 4-9.

Added
language
regarding AB

Response to HCD Informal Reviews, Page 3
Comment
#
Revision Request
Corresponding
Recommended Modifications
to the Housing Element
Response
(September)
HCD Compliance
(Informal)
Response
(November)
1033 on page
4-10 and in
Program I (2-
14). Added
recommended
language to
Program I.
3 In addition, the element now assumes that
24 ADU amnesty units will occur in the
planning period, largely, based on new
construction trends for ADUs. Instead, the
element should base assumptions on other
relevant factors such as past trends or
interest in amnesty ADUs or rescale
assumptions.

Explained the impetus for 2022
ADU Amnesty ordinance came
from local interest in legalizing
pool house ADUs in section
“ADU Amnesty”
Expanded ADU
amnesty discussion
beginning on page
4-15.

Yes
4 Zoning for a Variety of Housing Types
(Emergency Shelters): In response to the
previous finding, the element has been
updated to clarify that emergency shelters
are permitted by-right in the “public” zoning
designation and provided clarification on
development standards. However, the
element should analyze these standards as
constraints on emergency shelters.

Specifically, development standards such as
a maximum number of three beds and
clients are constraints and should be
addressed by adding or modifying
programs. Additionally, as noted in the prior
review, the element should demonstrate
compliance with Chapter 654, Statues of
Provided further analysis in
section “Emergency Shelters”
on C-7 and modify programs
as appropriate. Made bed limit
15 beds
Updated on page C7 and in Program R. No Fixed
(Program R,
page 2-23)

Response to HCD Informal Reviews, Page 4
Comment
#
Revision Request
Corresponding
Recommended Modifications
to the Housing Element
Response
(September)
HCD Compliance
(Informal)
Response
(November)
2022 (AB 2339) and add or modify
programs as appropriate.
5 Electronic Sites Inventory: For your
information, pursuant to Government Code
section 65583.3, the City must submit an
electronic sites inventory with its
adopted housing element. The City must
utilize standards, forms, and definitions
adopted by HCD. Please see HCD’s
housing element webpage at
https://www.hcd.ca.gov/planning-andcommunity-development/housing-elements for a copy of the form and instructions. The
City can reach out to HCD at
[email protected] for technical
assistance.

N/A, will update as appropriate Yes
Programs
6 Program Q (Implement Multifamily
Housing): The Program should include
additional sites, commit to allowable
densities (e.g., 20 units per acre), and
appropriate development standards to
encourage and facilitate multifamily
development at maximum allowable
densities. In addition, the Program should
go beyond analyzing the potential
application of SB 10 and commit to
outcomes that result in housing
opportunities such as amending zoning.

Finally, the Program should include a
significant and meaningful numeric objective
for the planning period. This is particularly
Included more information
about allowable densities and
appropriate development
standards in Program Q.

SB9: Updated
Program E.

Updated constraints
section on page C10.

SB10: Updated
Program Q.

Updated with new
section in
Constraints section
describing program,
No Revisions
throughout
Program Q
(beginning on
page 2-19)

Response to HCD Informal Reviews, Page 5
Comment
#
Revision Request
Corresponding
Recommended Modifications
to the Housing Element
Response
(September)
HCD Compliance
(Informal)
Response
(November)
important considering the effectiveness of
Program HE-2.5 (Multifamily Zoning) during
the 5th cycle.
beginning on page
C-11.
7 Program B (Site Development Permits): The
Program commits to amend the City’s
design standards related to manufactured
housing but should also commit to discrete
timing (e.g., by 2025).

Clarified the timeline of
finishing City design standard
amendments (2026) in
Program B.

Updated Program B. Yes
8 Program G (Development Incentives): The
Program commits to establish a tracking
method for proactive outreach but should
clearly commit to proactively reach out to
developers at least annually to identify
development opportunities. This is
particularly important given the lack of
implementation in prior planning periods.

Included “to identify
development opportunities” in
the second paragraph of
Program G.

Updated Program
G.

No Fixed
(Program G,
page 2-11)
Analysis of potential and actual governmental constraints 9 Local Processing and Permit Procedures:

The element now identifies approval
findings for the Site Development Permit but
should also analyze those findings for
impacts on approval certainty. For example,
the permit requires compatibility with the
character of the surrounding neighborhood.

The element should explain the application
of the finding, potential subjectivity and
impacts on approval certainty.

Clarified how 10.08.050(E)
provides an objective approval
process for applicable projects
in section “Processing and
Permit Procedures.”
Updated
“Processing and
Permitting
Procedures” on
page C-16
No Revisions C16 to C-18.

Note for
Diana,
included.
10 Programs: As noted above, the element
requires a complete analysis of potential
governmental constraints. Depending upon
the results of that analysis, the City may
need to revise or add programs and address
N/A, will update as appropriate Yes

Response to HCD Informal Reviews, Page 6
Comment
#
Revision Request
Corresponding
Recommended Modifications
to the Housing Element
Response
(September)
HCD Compliance
(Informal)
Response
(November)
and remove or mitigate any identified
constraints.
10 In addition, as noted in prior reviews, the
City lacks a variety of minimum lot sizes and
densities and continues to lack sufficient
programs to address this pattern. The
element should expand upon programs,
beyond complying with state laws, to create
a variety of lot sizes, increased densities,
and modified development standards to
facilitate maximum densities.

Revised programs regarding
SB 9 to clarify changes that
allow for a variety of minimum
lot sizes and densities. Will
clarify that City is revising SB
10 to make it easier for people
to apply.

Expanded Program
E (SB9) and
Program Q (SB10).

Yes
Promote AFFH
11 Goals, Actions, Metrics, and Milestones:

The element must be revised to include
goals and actions that 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. As a reminder, 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. These conditions and
circumstances warrant significant and
robust actions (not limited to the RHNA) to
promote housing mobility and increase
housing choices and affordability throughout
the City. Programs must include metrics or
numeric objectives and timelines that target
Revised to include metrics and
numeric objectives. Will include
incentives for SB10
applications that have been
developed by City since
submittal of 3rd Draft Housing
Element.

Included 4 VL/L
units in SB9 under
Program E
Updated Program L
(Homesharing)
Included 4 VL/L
units in SB10 under
Program Q.

No Developed
new section

2.5 in Chapter
2 that
includes
Table 2-4
“Housing
Element
Programs with
Specific
Commitments
to
Affirmatively
Further Fair
Housing”
beginning on
page 2-27.

Section 2.5
includes a list
of programs

Response to HCD Informal Reviews, Page 7
Comment
#
Revision Request
Corresponding
Recommended Modifications
to the Housing Element
Response
(September)
HCD Compliance
(Informal)
Response
(November)
intended outcomes. For your information,
metrics (where applicable), should be
targeting beneficial impacts for people,
households, and neighborhoods (e.g.,
number of people or households assisted,
number of housing units built, number of
parks or infrastructure projects completed).
with specific
commitments
towards
promoting
housing
mobility,
increasing
housing
choice and
affordability
throughout
the city.

Appendix A
has been
updated to
include the
edited
information
that can now
be found in
Section 2.5 of
Chapter 2.

RESOLUTION NO. ______

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

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

WHEREAS, the California Legislature has found that “California has a housing supply and affordability crisis of historic proportions. The consequences of failing to effectively and aggressively confront this crisis are hurting millions of Californians, robbing future generations of the chance to call California home, stifling economic opportunities for workers and businesses, worsening poverty and homelessness, and undermining the state’s environmental and climate objectives” (Gov. Code Section 65589.5.); and
WHEREAS, the Legislature has further found that “among the consequences of those actions are discrimination against low-income and minority households, lack of housing to support employment growth, imbalance in jobs and housing, reduced mobility, urban sprawl, excessive commuting, and air quality deterioration” (Gov. Code Section 65589.5); and
WHEREAS, the Legislature recently adopted the Housing Crisis Act of 2019 (SB 330) which states that “In 2018, California ranked 49th out of the 50 states in housing units per capita… California needs an estimated 180,000 additional homes annually to keep up with population growth, and the Governor has called for 3.5 million new homes to be built over 7 years”; and
WHEREAS, State Housing Element Law (Government Code Sections 65580 et seq.) requires that the City Council adopt a Housing Element for the eight-year period 2023-2031 to accommodate the City of Monte Sereno’s regional housing need allocation (RHNA) of 193 housing units, comprised of 53 very-low income units, 30 lowincome units, 31 moderate-income units, and 79 above moderate-income units; and WHEREAS, to comply with State Housing Element Law, Monte Sereno has prepared Housing Element 2023-2031 (the Housing Element) in compliance with State Housing Element Law and has identified sites that can accommodate housing units meeting the City’s RHNA; and
WHEREAS, as provided in Government Code Section 65350 et. seq., adoption of the Housing Element constitutes a General Plan Amendment; and WHEREAS, as provided in Government Code Sections 65352 – 65352.5 the City mailed a public notice to all California Native American tribes provided by the Native American Heritage Commission and to other entities listed; and

WHEREAS, no California Native American tribe requested consultation; and WHEREAS, the City conducted extensive community outreach over the last 26 months including 19 public meetings and community meetings; and WHEREAS, the City reviewed the project's environmental impacts under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and the regulations promulgated thereunder (14 California Code of Regulations §§ 15000, et seq., the "CEQA Guidelines”). The proposed Housing Element will not have the effect of substantially changing regulatory standards or findings required therefore in accordance with CEQA, the proposed ordinance is exempt from CEQA pursuant to Section 15061(b) (3) because the activity is governed by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment, and any changes to the City municipal code as may be required by the proposed Housing Element will be reviewed for environmental impacts at such time as they are adopted or implemented; and
WHEREAS, the City determined that the Housing Element Update is exempt from further review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and the regulations promulgated thereunder (14 California Code of Regulations §§ 15000, et seq., the "CEQA Guidelines"), that in accordance with the California Environmental Quality Act (CEQA), the City reviewed the project's environmental impacts under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and the regulations promulgated thereunder (14 California Code of Regulations §§ 15000, et seq., the "CEQA Guidelines") and deemed the project to be exempt from further CEQA review pursuant to section 15332 (Class 32 In-Fill Development Projects), in that all of the likely development envisioned under the revised Housing Element consists of in-fill projects that would add additional housing on land already zoned for such residential uses, on parcels smaller than five acres surrounded by urban uses, on sites that are not habitat for threatened, endangered or rare species, where no significant effects to traffic, noise, air or water quality are anticipated, and where sufficient utilities and public services exist, as well as under section 15303, in that development is anticipated to result in construction primarily of residential developments in existing residential zones as specified in section 15303(a);; and
WHEREAS, in accordance with Government Code Section 65585 (b), on August 9, 2022, the City posted the draft Housing Element and requested public comment for a 30-day review period, and on October 11, 2022, after responding to public comments, the City submitted the draft Housing Element to the State Department of Housing and Community Development (HCD) for its review; and
WHEREAS, on January 9, 2023 the City received a letter from HCD providing its comments and findings regarding the draft Housing Element; and

WHEREAS, on January 24, 2023 the City published a second draft Housing Element responding to HCD’s findings and requested public comment on the draft; and WHEREAS, on January 31, 2023, the City Council, as the City’s planning agency, and Site and Architectural Commission held a special joint meeting to consider the proposed 2023-2031 Monte Sereno Housing Element and after a public hearing, the Site and Architectural Commission recommended approval and the City Council approved Resolution 23-3873 adopting the 2023-2031 Monte Sereno Housing Element; and
WHEREAS, on March 31, 2023 the City received a letter from HCD providing its comments and findings regarding the second draft Housing Element; and WHEREAS, on July 13, 2023 the City published a third draft Housing Element responding to HCD’s findings and requested public comment on the draft; and WHEREAS, on September 22, 2023 the City received a letter from HCD providing its comments and findings regarding the third draft Housing Element; and WHEREAS, on February 14, 2024 the City published a fourth draft Housing Element responding to HCD’s findings and requested public comment on the draft; and WHEREAS, on April 5, 2024 the City published revisions to the fourth draft Housing Element responding to HCD’s findings and requested public comment on the draft; and
WHEREAS, on April 22, 2024 the City received a letter from HCD stating that the revised fourth draft Housing Element is in substantial compliance with State Housing Element Law and will comply with the State Housing Element Law when it is adopted; and
WHEREAS, the City Council desires to consider the proposed 2023-2031 Monte Sereno Housing Element as amended and after a public hearing.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Monte Sereno, as follows:

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

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

Section 3. As required by Government Code Section 65585(e), the City Council has considered the findings made by the Department of Housing and

Community Development included in the Department’s letter to the Monte Sereno dated January 9, 2023, March 31, 2023, and September 22, 2023, consistent with Government Code Section 65585(f), the City Council has changed the 2023-2031 Monte Sereno Housing Element in response to the findings of the Department to substantially comply with the requirements of State Housing Element Law as interpreted by HCD.

Section 4. The 2023-2031 Monte Sereno Housing Element, as shown in Attachment A to this Resolution, incorporated herein, is hereby adopted and replaces the Housing Element adopted by Resolution No. 23-3873which is hereby repealed.

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

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

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

REGULARLY APPROVED this 7th day of May 2024 by the following roll call vote:

Ayes:

Noes:

Abstain:

Absent:

Evert Wolsheimer, Mayor
Attest: ___________________________
Gloisy Gonzalez-Langarica, City Clerk

Attachment A: 2023-2031 Monte Sereno Housing Element

MONTE SERENO 6th CYCLE
HOUSING ELEMENT (2023-2031)

CITY OF MONTE SERENO
Prepared by M-Group
April 2024
Adoption Draft: May 2024

Table of Contents

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

2.0 GOALS, POLICIES, AND PROGRAMS...............................................................................2.1

3.0 OVERVIEW OF HOUSING NEEDS AND CONSTRAINTS................................................3.1

4.0 VACANT AND AVAILABLE SITES ....................................................................................4.1 APPENDIX A MONTE SERENO FAIR HOUSING ASSESSMENT.........................................A.1 APPENDIX B HOUSING NEEDS ASSESSMENT ...................................................................B.1 APPENDIX C HOUSING CONSTRAINTS ..............................................................................C.1 APPENDIX D EFFORTS TO LOCATE VACANT SITES.........................................................D.1 APPENDIX E REVIEW OF PREVIOUS HOUSING ELEMENT...............................................E.1 APPENDIX F LIST OF CONTACTED ORGANIZATIONS ......................................................F.1 APPENDIX G PUBLIC COMMENTS RECEIVED...................................................................G.1

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.............................................................................................. 1-9

1.6 Public Participation .............................................................................................................. 1-11 Tables
Table 1-1 Regional Housing Needs Allocation ....................................................................... 1-3

Chapter 1.0 Introduction 1-1
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024

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 projected to add 169,700 jobs,1 which represents a 15 percent increase. These changes will increase 1 Source: Plan Bay Area, Projections 2040. Association of Bay Area Governments and Metropolitan Transportation Commission, November 2018.

Chapter 1.0 Introduction 1-2
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 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 methodology4
, assuming that 50 percent of very low-income households qualify as extremely low2 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 4 https://www.hcd.ca.gov/planning-and-community-development/housing-elements/building-blocks/extremely-lowincome-housing-needs

Chapter 1.0 Introduction 1-3
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 income 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 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 on public agencies to affirmatively further 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;
 Not take any action that is materially inconsistent with the obligation to affirmatively further fair housing;
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
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024  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 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;  All tracts in Monte Sereno are White majority. Monte Sereno when viewed in isolation is less segregated than the Bay Area overall, although this is more likely a factor of Monte Sereno’s small geographical size than a product of purposeful 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.

Chapter 1.0 Introduction 1-5
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024  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;
 Monte Sereno offers very 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, with 37% of rental units with rent of 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 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.
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
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 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 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 A). 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 segregation 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 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 7 For more information, see https://belonging.berkeley.edu/most-segregated-cities-bay-area-2020.

Chapter 1.0 Introduction 1-7
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 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.

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 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 unincorporated County 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.
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.

Chapter 1.0 Introduction 1-8
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 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  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.

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; 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 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.

Chapter 1.0 Introduction 1-9
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024  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.

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.

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).

Chapter 1.0 Introduction 1-10
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 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 undertaken the process of identifying any possible surplus lands through the adequate sites inventory of the 6th Cycle Housing Element. 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.

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.

Chapter 1.0 Introduction 1-11
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 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 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/).

Chapter 1.0 Introduction 1-12
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 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 communitymembers 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 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.

Chapter 1.0 Introduction 1-13
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 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.

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.

Chapter 1.0 Introduction 1-14
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 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; • Housing Perspectives with Denise
• 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.

Chapter 1.0 Introduction 1-15
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 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.

Chapter 1.0 Introduction 1-16
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 This side intentionally left blank.

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 Summary of Quantified Objectives .....................................................................................2-5

2.4 Goals, Policies, and Programs..............................................................................................2-5

2.5 Fair Housing Issues, Contributing Factors, and City Actions.......................................2-27 Tables
Table 2-1 Policy Matrix with Community Outreach Voices................................................. 2-2 Table 2-2 Quantified Objectives............................................................................................... 2-5 Table 2-3 Implementation Programs........................................................................................ 2-7 Table 2-4 Housing Element Programs with Specific Commitments to Affirmatively Further Fair Housing............................................................................................................... 2-7

Chapter 2.0 Goals, Policies, and Programs 2-1
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024

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.

The City has also developed a list of City actions to affirmatively further fair housing, beyond these four goals. This can be found in Section 2.5, Fair Housing Issues, Contributing Factors, and City Actions.

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.

Chapter 2.0 – Goals, Policies, and Programs 2-2
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 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 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)
Policy:

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

Chapter 2.0 – Goals, Policies, and Programs 2-3
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 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)
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
“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 Policies:

H-1.3 Adequate Housing Sites
H-2.1 Fair Housing

Chapter 2.0 – Goals, Policies, and Programs 2-4
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 Intentions Heard from AFFH Outreach
(Input/quotation (date of contribution)
Resulting Policies and Programs
being squished. ADUs are just terrific because it makes it feel like it’s your home.” (WVCS ELI Focus Group, 2022)
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 close by, 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 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

Chapter 2.0 – Goals, Policies, and Programs 2-5
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024

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. Table 2-2 provides an overview of these quantified objectives.

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).

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
SOURCE: City of Monte Sereno, 2023

2.4 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 2-6
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 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 2-7
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 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 2-3 Implementation Programs, provides a breakdown of each program, associated policies, quantified objectives, and performance metric(s).

Table 2-3 Implementation Programs
Table 2-3 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
Revise procedures by December 2025
Funding Source
General Fund
Quantified Objective

Chapter 2.0 – Goals, Policies, and Programs 2-8
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 Table 2-3 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. Design standards related
to manufactured housing will be updated
by the end of 2024.

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
Map requirement for four lots or fewer
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 2-9
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 Table 2-3 Implementation Programs
consistent with the Subdivision Map Act.

Parcel maps can be used to facilitate
small-lot development of single-family
homes.

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,
smaller, flag lots by 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 SB9
regulations to facilitate new construction
in accordance with all 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
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 by December 2023
Funding Source
General Fund
Quantified Objective

Chapter 2.0 – Goals, Policies, and Programs 2-10
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 Table 2-3 Implementation Programs
opportunity for input, and necessary code
changes will be completed. The City will
conduct a mid-cycle check-in beginning in
late 2027 to identify and mitigate any
constraints encountered in the program
preventing the utilization of SB9. If there
are not at least 2 SB9 projects in
development, the City will consider
incentives to development, including
allowing a Supplemental ADU in addition
to the ADU and JADU allowed on each
split parcel.
10 units, including at least 5 for very low
and/or low income households.

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.

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.

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The City will also proactively reach out to
affordable housing developers and
identify development opportunities is
made at least annually to affordable
housing developers and agencies. The
Annual Progress Report will include a
status update on this annual outreach and
make adjustments as necessary to
achieve program objectives.

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
Funding Source
General Fund
Quantified Objective
10 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

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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
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,
use, and production of ADUs,
including amnesty ADUs; annually.

If ADU construction goals,
affordability goals, or
availability/use of such units are not
met on an annual basis as
reviewed with the Annual Progress
Report, within six months of such
annual review the city will consider
other incentives and re-zoning 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 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;
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
Approve program amendments to remove
identified constraints to ADU production
throughout the 2023-2031 planning period
Funding Source
General Fund
Quantified Objective
160 total new ADUs, as follows: 24
Extremely Low, 24 Very Low, 48 Low, 48
Moderate; and, 16 above moderate.; ADU
Amnesty Program 18 units
Legalize 18 unpermitted ADUs to legal
units through the amnesty program.

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

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 Establish incentives for ADU
construction by creating a building
permit fee waiver/reduction
program equaling a 50% discount
on building permit fees (2023);
 Consider allowing ADUs larger
than 1,200 square feet on certain
lots to 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);
 Review local ADU regulations to
determine where local
requirements are more restrictive
than the State laws and remove

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any more restrictive local
requirements; and
 Revise the ADU to ordinance to
comply with all State laws (January
2024).
 Develop AB 1033 ordinance
allowing for separate conveyance
of ADUs and present to Council for
adoption (August 2024)
 If, by December 2025, a lack of
staff capacity is preventing the
timely review and approval of
ADUs, the City will commit to
increasing staff capacity with a
focus on ADU review (end of 2025)
J Special Needs Households
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
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, ongoing through the 2023-2031
planning period
Funding Source
General Fund
Quantified Objective
Construction of 10 new housing units
dedicated to low income or special needs
populations (see Program G).

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

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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).

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
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.

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
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
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

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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 property owners who may be
interested in a home sharing opportunity.

This includes outreach materials at City
Hall and at local events, as well as an
annual meeting. The Annual Progress
Report will include a status update on this
annual outreach.

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 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.

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)
# of ELI units developed and added to
existing housing stock; # of new programs
created to further AFFH

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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)
# 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, Municipal Code to be Updated by
December 2024
Funding Source
General Fund
Quantified Objective

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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
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.

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
Mitigate and resolve issues arising from
housing discrimination
Performance Metric(s)

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# 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
PIT count throughout each year of
housing cycle)
Q Implement Multi-Family Housing Rezoning
Multi-family zoning encourages and
facilitates a variety of housing types
including feasibility-tested density,
development standards and permit
procedures. The City Council has
identified two sites along Winchester
Boulevard to proceed with rezoning to
allow for multifamily housing using the
SB10 regulations. The two adjacent sites
are located at 15785 and 15791
Winchester Boulevard (APNs 410-10-045,
410-10-046). Each property is
approximately 0.4 acres in size, which is
a sufficient size to be redeveloped
individually or together as one larger
project.

Implementation Policies
H-1.3 Adequate Housing Sites
H-2.1 Fair Housing
Responsible Department/Review
Authority
City Staff and Council
Timeframe
June 2025
Outreach to property owners to begin in
June 2024, outreach to potential tenants
to begin upon first development
application
Funding Source
General Fund
Quantified Objective

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Winchester Blvd is an arterial street that
is served by a VTA bus line. Much of
Winchester Blvd is located within the
Town of Los Gatos and includes a variety
of uses, including multifamily housing.

These parcels are within a typical walking
distance from schools, parks, and other
amenities:
• Daves Avenue Elementary
School: 1,300 feet
• Oak Meadow Park: 0.33 miles
• Safeway (470 N. Santa Cruz
Ave.): 0.6 miles
• Winchester & Daves Rte. 27 Bus
Stop: 60 feet
The City will facilitate and encourage
these newly zoned parcels will be
required to be developed as multi-story
attached rental apartment typologies at a
minimum of 20 du/ac. Affirmative
marketing will be required, particularly for
reaching applicants that may be large
households, female-headed households,
farmworkers, or seniors.

Additionally, the City will establish a
process by which any property owner can
request consideration of an SB10
multifamily rezone of their property.

These rezones will be the same density
range as above. Larger lots that could not
meet the density range using SB 10 will
be encouraged to consider a (non-SB9)
lot split. This will allow for additional
multifamily opportunities throughout the
City.

As part of the program, the City will
analyze potential application of SB 10
because:
 There are unique isolated
opportunity sites within the city
which may be good candidates for
use of this optional state law;
Two sites rezoned. The units to be
developed will include a total of at least
15 units overall. In addition, two additional
applications through new streamlined
process developed with at least 20 units.

Performance Metric(s)
# of sites identified for MF zoning
designation; # of housing units available
(SB-10 developments will require at least
20 du/ac)
Mid-cycle (late 2027) check-in if less than
two developments are in progress at that
time.

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 Nearly all of the city’s housing
stock is not conducive to lot
consolidation or redevelopment,
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 housing type
constructed and ensure the
multifamily rental-style units are
required.

The SB10 request process will be
streamlined and ministerial, with minimal
fees. The rezone process will use SB 10
as a guide to establish multifamily zoning
with appropriate development to facilitate
maximum densities on sites.

In addition to the SB 10 request process,
property owners can request a rezone to
a zoning district that allows multifamily
housing (RM or P districts). If either
zoning district allowing multifamily (RM or
P) is applied to a new address, or a new
multifamily zoning designation allowing a
minimum density of at least 20 du/ac, the
RM or P zoning standards will be
modified to allow objective/ministerial
development using objective design
standards.

A two-pronged outreach approach will
target prospective property owners and
tenants. To identify property owners, the

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City will have outreach materials at City
Hall and at local events, as well as
convene outreach meetings annually. In
addition, the City will affirmatively market
to rental applicants that may be large
households, female-headed households,
farmworkers, or seniors.

The City will conduct a mid-cycle check-in
beginning in late 2027 to identify and
mitigate any constraints encountered in
the program. This could include additional
outreach and/or additional incentives to
the local SB 10 ordinance or to incentivize
rezoning requests. It could also include
alternative sites suitable to develop at
least 20 units at 20 du/ac. The mitigation
program would be completed by January
1, 2028.

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
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
Implementation Policies
H-2.1 Fair Housing
Responsible Department/Review
Authority
City Staff and Council
Timeframe
2023-2024

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even as Monte Sereno’s unhoused
homeless population remained at zero.

The city will participate in regional efforts,
which 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 will revise the maximum number of
beds allowed by right from 3 to 15,
including eliminating the maximum
number of clients provisions. In addition,
the City will revise zoning and permit
procedures to comply with Government
Code section 65583, subdivision (a)(4)
(AB 2339) within one year of adoption,
including amending the definition of
emergency shelters, identifying a zone
where residential uses are allowed,
ensuring sufficient capacity to facilitate
the financial feasibility of at least one
emergency shelters (e.g., at least 10-15
beds) in proximity to transportation and
services to the extent possible and
modifying development standards.

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 Occupancy 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
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)

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supportive housing without discretionary
review.

N/A
Goal H-3: Maintain and Improve the Existing Housing Stock 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)

Chapter 2.0 – Goals, Policies, and Programs 2-25
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 Table 2-3 Implementation Programs
N/A
V Energy Conservation
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; and
 Provide resource materials
regarding green building and
conservation programs.

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
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
General Fund

Chapter 2.0 – Goals, Policies, and Programs 2-26
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 Source: City of Monte Sereno; EMC Planning Group
Table 2-3 Implementation Programs
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
With 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)

Chapter 2.0 – Goals, Policies, and Programs 2-27
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 Fair Housing Issues, Contributing Factors, and City Actions The 2023-2031 Housing Element goals, policies, and programs were developed and refined based on community priorities and concerns. Based on community input and an analysis of City capacity, the project team developed a matrix identifying Monte Sereno’s primary fair housing issues, their contributing factors, a priority level for the fair housing issues, and City actions to remediate the issue. The fair housing issues identified are:

A. Lack of housing that accommodates people of lower-income with a disproportionate impact on people of color, resulting in a lack of overall socio-economic and racial diversity in the city. (High Priority)
B. 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. (High Priority)
C. Lack of sufficient infrastructure to support diverse housing stock. (Low Priority) Monte Sereno has several housing element programs that make specific, measurable, commitments towards affirmatively furthering fair housing. Through Program I, the City is committed to legalizing 18 unpermitted units through its ADU Amnesty Program and developing at least 160 accessory dwelling units (ADUs), including:
• 24 for Extremely Low income
• 24 for Very Low income
• 48 for Low income
• 48 for Moderate Income
• 16 for Above Moderate Income
Notable programs with specific commitments towards promoting housing mobility, increasing housing choice and affordability throughout the city, include:
• Program L: Shared Housing Options (10 homeshares)
• Program C: Facilitate Parcel Maps (10 above moderate income units on lots smaller than typical for the city)
• Program D: Flag Lots (10 above moderate income units on lots smaller than typical for the city)
• Program E: Review SB 9 Regulations (10 units)
• Program G: Development Incentives (10 new housing units dedicated to low income or special needs populations, linked to Program J: Special Needs Housing) • Program Q: Implement Muti-Family Housing Re-zoning (15 units on two sites identified, approval of at least two additional applications with 20 units overall, for at least 35 units overall)
• Program T: Housing Maintenance (10 units preserved)
These programs, along with other commitments to affirmatively further fair housing, are captured below, organized by fair housing issue:

Chapter 2.0 Goals, Policies, and Programs 2-0
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 Table 2-4 Housing Element Programs with Specific Commitments to Affirmatively Further Fair Housing HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023-2031 Metric
Lack of Lower-Income Housing – High Priority
Program J: Special
Needs Housing
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,
Annually, ongoing
through the 2023-
2031 planning
period
Town-wide Construction of 10
new housing units
dedicated to low
income or special
needs populations (see
Program G).

Chapter 2.0 – Goals, Policies, and Programs 2-1
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023-2031 Metric
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 moderate-income
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).

Chapter 2.0 – Goals, Policies, and Programs 2-2
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023-2031 Metric
Program 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 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 accompany the updated
ordinance with visitability
standards. The Citywill 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) if the
ADU meets visitability standards. to
Updated
ordinance and
visitability
standards by
December 2024;
incentive to
increase ADU size
by December 2025
if no visitable
ADUs permitted in
2024.

Town-wide At least 1 visitable ADU
permitted per year.

Chapter 2.0 – Goals, Policies, and Programs 2-3
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023-2031 Metric
ensure ADUs are a desirable option
by December 2025.

Program 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.

Annually, prior to
April 1 of each
year, ongoing
through the 2023-
2031 planning
period
Town-wide Provided shared
housing to 5 Extremely
Low and 5 Very LowIncome Persons (10
overall)

Chapter 2.0 – Goals, Policies, and Programs 2-4
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023-2031 Metric
The City will also track proactive
outreach actions, which will be
made at least annually to property
owners who may be interested in a
home sharing opportunity. This
includes outreach materials at City
Hall and at local events, as well as
an annual meeting. The Annual
Progress Report will include a
status update on this annual
outreach.

Diversity of Housing Types – High Priority
Program 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
Annually, ongoing
through the 2022-
2031 planning
period. Design
standards related
to manufactured
housing will be
updated by the
end of 2024.

Town-wide 190 units developed
through objective
development design
standards (20 units via
SB 10, 10 units via SB
9, and 160 ADUs)
throughout the
planning period.

Chapter 2.0 – Goals, Policies, and Programs 2-5
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023-2031 Metric
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:
- Developments subject to
Monte Sereno’s SB 10
ordinance
- SB 330-eligible projects
- Accessory Dwelling Units
- 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

Chapter 2.0 – Goals, Policies, and Programs 2-6
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023-2031 Metric
Development Design Standards will
be updated to expressly state this.

Program 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 Map requirement for
four lots or fewer consistent with
the Subdivision Map Act.
2023-2024 Town-wide Construction of 10
Above Moderateincome units on lots
smaller than typical for
the city
Program 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
Amend ordinance
and complete
necessary General
Plan amendments
in the period 2023-
December 2024
Town-wide Construction of 10
Above Moderateincome units on lots
smaller than typical for
the city

Chapter 2.0 – Goals, Policies, and Programs 2-7
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023-2031 Metric
lot sizes, setbacks and frontage
requirements.

Program E: Review SB
9 Regulations
The City will review the current SB9
regulations to facilitate new
construction in accordance with all
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, and
necessary code changes will be
completed. The City will conduct a
mid-cycle check-in beginning in late
Amend ordinance
by December 2023
Town-wide Construction of 10
units, including at least
5 for very low and/or
low income
households.

Chapter 2.0 – Goals, Policies, and Programs 2-8
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023-2031 Metric
2027 to identify and mitigate any
constraints encountered in the
program preventing the utilization
of SB9. If there are not at least 2
SB9 projects in development, the
City will consider incentives to
development, including allowing a
Supplemental ADU in addition to
the ADU and JADU allowed on each
split parcel.

Program 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 proactively reach
out to affordable housing
developers and identify
development opportunities is made
Public Forum for
Developer
Education, Biannually with the
first forum in
2024.

Town-wide Construction of 10
new housing units
dedicated to low
income or special
needs populations.

Chapter 2.0 – Goals, Policies, and Programs 2-9
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023-2031 Metric
at least annually to affordable
housing developers and agencies.

The Annual Progress Report will
include a status update on this
annual outreach and make
adjustments as necessary to
achieve program objectives.

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

Chapter 2.0 – Goals, Policies, and Programs 2-10
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023-2031 Metric
with identifying and/or applying for
project funding from other sources
including, but not limited to, CDBG
and HOME funds
Program I: Accessory
Dwelling Units
Accessory dwelling units are
complete independent housing
units that can be either detached
or attached from an existing singlefamily 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 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
Approve program
amendments to
remove identified
constraints to ADU
production
throughout the
2023-2031
planning period
Town-wide Construction of 160
total new ADUs,
including: 24 for
Extremely Low income,
24 for Very Low
income, 48 for Low
income, 48 for
Moderate income;
and, 16 for above
moderate income.

Legalization of 18
unpermitted units
through the ADU
Amnesty Program.

Chapter 2.0 – Goals, Policies, and Programs 2-11
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023-2031 Metric
Accessory Dwelling Units (ADU)
Program, with the following
actions:
- Continue to survey
affordability, use, and
production of ADUs,
including amnesty ADUs;
annually. If ADU
construction goals,
affordability goals, or
availability/use of such units
are not met on an annual
basis as reviewed with the
Annual Progress Report,
within six months of such
annual review the city will
consider other incentives
and re-zoning 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 permits to
legalize the unit through
reduced building permit

Chapter 2.0 – Goals, Policies, and Programs 2-12
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023-2031 Metric
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
equaling a 50% discount on
building permit fees (2023);
- Consider allowing ADUs
larger than 1,200 square
feet on certain lots to
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

Chapter 2.0 – Goals, Policies, and Programs 2-13
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023-2031 Metric
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);
- Review local ADU
regulations to determine
where local requirements
are more restrictive than the

Chapter 2.0 – Goals, Policies, and Programs 2-14
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023-2031 Metric
State laws and remove any
more restrictive local
requirements; and
- Revise the ADU to ordinance
to comply with all State laws
(January 2024).
- Develop AB 1033 ordinance
allowing for separate
conveyance of ADUs and
present to Council (May
2024)
If, by December 2025, a lack of staff
capacity is preventing the timely
review and approval of ADUs, the
Town will commit to increasing
staff capacity with a focus on ADU
review (end of 2025)
Program Q: 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 Council has
identified two sites along
Winchester Boulevard to proceed
with rezoning to allow for
June 2025
Outreach to
property owners
to begin in June
2024, outreach to
potential tenants
to begin upon first
Town-wide Two sites rezoned to
include 15 overall
units. Approval of at
least two additional
applications with 20
units overall through
the new streamlined
process. Mid-cycle (late

Chapter 2.0 – Goals, Policies, and Programs 2-15
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023-2031 Metric
multifamily housing using the SB10
regulations. The two adjacent sites
are located at 15785 and 15791
Winchester Boulevard (APNs 410-
10-045, 410-10-046). Each property
is approximately 0.4 acres in size,
which is a sufficient size to be
redeveloped individually or
together as one larger project.

Winchester Blvd is an arterial street
that is served by a VTA bus line.

Much of Winchester Blvd is located
within the Town of Los Gatos and
includes a variety of uses, including
multifamily housing.

These parcels are within a typical
walking distance from schools,
parks, and other amenities:
- Daves Avenue Elementary
School: 1,300 feet
development
application
2027) check-in if less
than two
developments are in
progress at that time.

Chapter 2.0 – Goals, Policies, and Programs 2-16
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023-2031 Metric
- Oak Meadow Park: 0.33
miles
- Safeway (470 N. Santa Cruz
Ave.): 0.6 miles
- Winchester & Daves Rte. 27
Bus Stop: 60 feet
The City will facilitate and
encourage these newly zoned
parcels will be required to be
developed as multi-story attached
rental apartment typologies at a
minimum of 20 du/ac. Affirmative
marketing will be required,
particularly for reaching applicants
that may be large households,
female-headed households,
farmworkers, or seniors.

Additionally, the City will establish a
process by which any property
owner can request consideration of
an SB10 multifamily rezone of their

Chapter 2.0 – Goals, Policies, and Programs 2-17
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023-2031 Metric
property. These rezones will be the
same density range as above.

Larger lots that could not meet the
density range using SB 10 will be
encouraged to consider a (non-SB9)
lot split. This will allow for
additional multifamily
opportunities throughout the City.

As part of the program, the City will
analyze potential application of SB
10 because:
- There are unique isolated
opportunity sites within the
city 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, which
would be necessary for a
multi-family zoning change

Chapter 2.0 – Goals, Policies, and Programs 2-18
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023-2031 Metric
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
housing type constructed
and ensure the multifamily
rental-style units are
required.

The SB10 request process will be
streamlined and ministerial, with
minimal fees. The rezone process
will use SB 10 as a guide to
establish multifamily zoning with

Chapter 2.0 – Goals, Policies, and Programs 2-19
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023-2031 Metric
appropriate development to
facilitate maximum densities on
sites.

A two-pronged outreach approach
will target prospective property
owners and tenants. To identify
property owners, the City will have
outreach materials at City Hall and
at local events, as well as convene
outreach meetings annually. In
addition, the City will affirmatively
market to rental applicants that
may be large households, femaleheaded households, farmworkers, or seniors.

The City will conduct a mid-cycle
check-in beginning in late 2027 to
identify and mitigate any
constraints encountered in the
program. This could include

Chapter 2.0 – Goals, Policies, and Programs 2-20
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023-2031 Metric
additional outreach and/or
additional incentives to the local SB
10 ordinance. It could also include
alternative sites suitable to develop
at least 20 units at 20 du/ac. The
mitigation program would be
completed by January 1, 2028.

Infrastructure – Low Priority
Program 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.

Annually, ongoing
through the 2023-
2031 planning
period
Town-wide Close 10 code
enforcement cases
within the 2023 – 2031
housing cycle.

Program V: Energy
Conservation
Conserving energy helps preserve
the integrity of the electrical grid
and reduces emissions that
contribute to climate change. The
City will encourage energy
Annually, ongoing
through the 2023-
2031 planning
period
Town-wide Construction of 193
new housing units with
energy conservation
features that reduce

Chapter 2.0 – Goals, Policies, and Programs 2-21
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023-2031 Metric
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; and
Provide resource materials
regarding green building and
conservation programs.
energy usage by an
average of 10%.

Chapter 2.0 – Goals, Policies, and Programs 2-22
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 HE Programs or
Other Activities Specific Commitment Timeline Geographic Targeting 2023-2031 Metric
Program 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.

Completed by the
end of FY 2023-
2024
Town-wide Construction of 193
New housing units
with water
conservation features
that reduce water
usage by an average of
10%.

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 Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024

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 Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 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. The following provides an overview of housing needs in Monte Sereno:
 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;
 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 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
1 Note that contract rents may differ significantly from, and often being lower than, current listing prices.

Chapter 3.0 Overview of Housing Needs and Constraints 3-3 Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024  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
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 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 Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 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.

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 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 Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 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 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. 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 Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 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.

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

Chapter 3.0 Overview of Housing Needs and Constraints 3-7 Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 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. The following provides an overview of affordability related to home ownership and renting in Monte Sereno:
 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  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

Chapter 3.0 Overview of Housing Needs and Constraints 3-8 Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 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 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).
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 Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 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 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

Chapter 3.0 Overview of Housing Needs and Constraints 3-10 Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 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.

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.
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 Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024

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.

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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..................................................................................................... 4-2

4.4 Site Inventory .......................................................................................................................... 4-5

4.5 Summary and Conclusions .................................................................................................. 4-20 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 Strategies to Meet Monte Sereno’s RHNA............................................................ 4-3 Table 4-4 Housing Progress to Date ........................................................................................ 4-7 Table 4-5 Monte Sereno’s Affordability ADU Survey Results............................................. 4-9 Table 4-6 ADU Adjustment Factors...................................................................................... 4-11 Table 4-7 JADU Building Permits Issued .............................................................................. 4-13 Figures
Figure 4-1 Site Inventory Map .................................................................................................... 4-6 Figure 4-2 Properties Planning to Construct an ADU .......................................................... 4-14

Chapter 4.0 Vacant and Available Sites 4-1
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024

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 eight-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
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 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 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
(Housing Progress to Date)
5 0 0 5 10
Remaining RHNA 48 30 31 74 183
SOURCE: City of Monte Sereno

4.3 Overview RHNA Strategy
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. Monte Sereno has developed the following strategies to meet the RHNA goals:
 Housing Progress to Date (10 units);
 Vacant Sites (4 units);
 Accessory Dwelling Units (160 units);

Chapter 4.0 Vacant and Available Sites 4-3
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024  JADUs (8 units);
 ADU Amnesty (18 units); and
 SB 9 (10 units).

Table 4-3, Strategies to Meet Monte Sereno’s RHNA, provides an overview of the aforementioned strategies and the projected number of units to be developed by each.

Table 4-3 Strategies to Meet 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 5 0 0 5 10
Accessory Dwelling Units 48 48 48 16 160
Junior Accessory Dwelling
Units 2 3 2 1 8
ADU Amnesty 3 3 3 1 10
SB 9 3 2 0 5 10
Vacant Sites 2 0 0 2 4
Total 63 56 53 30 202
Buffer 19% 87% 71% -62% 5%
SOURCE: City of Monte Sereno, 2023
Timeline and Outreach
The City of Monte Sereno’s efforts to facilitate residential construction and to explore the redevelopment of potential sites in the community has been extensive. The following provides a summary of the City’s efforts:
 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 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 in incentives provided by the City, approximately 10 percent of total building permit revenue. The City Council has expressed their strong 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. Although 225

Chapter 4.0 Vacant and Available Sites 4-4
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 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 percent of housing units in Monte Sereno is occupied by renters and substandard housing is less than 2 percent;
 City Hall Site – 18041 Saratoga Los Gatos Road/Public Facilities:
• The Monte Sereno City Hall building site (18041 Saratoga Los Gatos Road/Public Facilities) 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. If this property were to be converted to another use the community would lose a needed public facility;  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 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;  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

Chapter 4.0 Vacant and Available Sites 4-5
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 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) 1.1 acres; and
• 17771 Vineland Avenue (APN 409-41-022).

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 are provided in detail in Appendix D.

4.4 Site Inventory
Figure 4-1 illustrates the Monte Sereno 6th Cycle Housing Element site inventory, which includes housing progress to date, vacant sites, and SB 9 sites.

Chapter 4.0 Vacant and Available Sites 4-6
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 Figure 4-1 Site Inventory Map
SOURCE: City of Monte Sereno; EMC Planning Group

Chapter 4.0 Vacant and Available Sites 4-7
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 Housing Progress to Date
The RHNA projection period for the 2023-2031 Housing Element (6th Cycle) is June 30, 2022 through December 15, 2030. The statutory adoption date for the 6th Cycle Housing Element is January 1, 2023—a full seven 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 31, 2023, prior to adoption of the 6th Cycle Housing Element and apply these to the 2023-2031 RHNA. Table 4-2 shows the City of Monte Sereno’s adjusted RHNA, which takes progress made prior to the adoption of the updated Housing Element document into account.

This progress includes one single-family detached home, 9 accessory dwelling units (ADUs), and one Junior Accessory Dwelling Unit (JADU). The application file names, date of entitlements and permits, and description of affordability level are in Table 4-4.

Overall affordability for ADUs in the 2022 annual progress report was determined using ABAG’s policy of 30 percent very low, 30 percent low, 30 percent moderate, and 10 percent above moderate for each ADU where a survey was not returned. This formula was applied to all ADUs where a survey was not returned for the entire year. Since the APR was submitted to HCD, Monte Sereno received survey responses for APNs 410-02-005 and APN 410-05-018. Those are both receiving RHNA credit for lower income households, which is different than how they are described in the 2022 APR. ADUs at APNs 410-38-016, 410-12-011, 409-43-010, and 410-02-009 did not receive a survey response. For purposes of meeting RHNA, they are allocated for above moderate income levels.

Table 4-4 Housing Progress to Date
APN Application
File Name
Entitlement Date Building Permit
Date
Affordability
Level
Affordability
Determination
410-02-005
2022-0168
New ADU N/A - Ministerial 11/7/2022 Lower
Affordability based
on survey
response that $0
rent will be
charged
410-38-016
2022-0105
New ADU N/A – Ministerial 8/18/2022 Above Moderate N/A
410-05-018 2022-0156
New ADU N/A – Ministerial 8/29/2022 Lower
Affordability based
on survey
response that $0

Chapter 4.0 Vacant and Available Sites 4-8
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 rent will be
charged
410-20-035
2022-0261
New House 6/15/2021 10/5/2022 Above Moderate
New house, no
deed restriction
410-20-035
2022-0261
New ADU N/A - Ministerial 10/5/2022 Lower
Affordability based
on survey
response that rent
will be $1,012 -
$1,685
410-12-011
2022-0119
New ADU N/A – Ministerial 8/30/2022 Above Moderate N/A
409-43-010
2022-0166
New JADU N/A – Ministerial 9/30/2022 Above Moderate N/A 410-02-009 2022-0047
New ADU
N/A – Ministerial 9/9/2022 Above Moderate N/A
410-02-019 2022-0059
New ADU
N/A – Ministerial 8/16/2022 Lower
Affordability based
on survey
response that $0
rent will be
charged
510-12-013 2022-0077
New ADU
N/A – Ministerial 7/21/2022 Lower
Affordability based
on survey
response that $0
rent will be
charged
Accessory Dwelling Units (ADUs and Junior ADUs)
Affordability distribution of ADUs is as follows: 30 percent very low-income, 30 percent lowincome, 30 percent moderate-income, and 10 percent above moderate income. This distribution is based on analysis of ADU affordability in the Bay Area as researched and published by the Association of Bay Area Governments (ABAG) in their Technical Memo titled “Using ADUs to Satisfy RHNA”.

Chapter 4.0 Vacant and Available Sites 4-9
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 Prior to the publication of this ABAG methodology, the city conducted annual surveys to determine the actual affordability levels for ADUs each year. Based on the surveys between 2018 and 2020, actual affordability of ADUs in Monte Sereno was 50 percent very low-income, 30 percent lowincome, 20 percent moderate-income, and zero percent above moderate income.

Historic ADU affordability and use of the structures is based on surveys conducted by the city and completed by the property owners constructing the ADU. Table 4-5 exhibits efforts and information gathered with the annual surveys. Between 2017 and 2021, 50 percent of the surveys were returned. Of those survey responses, 93 percent of the ADUs were reportedly used as residences, and of those 27 units, 18 were made available at a very-low-income rent (67 percent).

Table 4-5 Monte Sereno’s Affordability ADU Survey Results Year
# of New
ADUs
Permitted
# of
Surveys
Mailed
# of
Surveys
Returned
# Used for
Residential
Purposes/Living
Unit
Very
Low
Income
Rent
Low
Income
rent
Moderate
Income
Rent
Above
Moderate
Income
Rent
Rent Not
Specified
on
Survey
2015 6 - - - - - - - -
2016 5 - - - - - - - -
2017 12 12 8 7 6 1 - - -
2018 8 8 3 2 2 - - -
2019 14 14 5 5 2 1 1 - 1
2020 9 9 4 4 1 - - 1 2
2021 14 14 9 9 7 - 1 - 1
2022 16 - - - - - - - -
2023* 12 - - - - - - - -
Total 96 57 29 27 18 2 2 1 4
SOURCE: City of Monte Sereno . *2023 is not yet complete at the time of this housing element. In addition to the 12 ADUs listed, 8 are in the building plan check process.

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 ADU permits, 9 were issued in 2020, and 14 in 2021. For 2022, a total of 16 building permits were issued for new ADUs. The number of permits issued in 2020 was lower than other years due to the COVID-19 pandemic and the resulting construction shut down. There are 12 ADUs receiving building permits so far in 2023 (10 ADUs and 2 JADUs), with 8 more ADUs in the building plan check process at the time of this housing element.

Excluding 2020 due to the disruption caused by COVID-19 and 2023 because the final ADU count is not yet determined (although likely to be greater than 13), the average number of building permits issued for new ADUs is 13 each year. Projecting that over the next eight years would result in 104 ADUs over the 2023-2031 planning period.

Chapter 4.0 Vacant and Available Sites 4-10
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 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 225 property owners expressing interest would average over 28 ADUs per year, 115 percent over the rolling historic average.

To further encourage ADU construction, the City Council has approved aggressive programmatic actions. This includes Program I’s commitment to a 50 percent discount on building permit fees to the 225 property owners that have expressed their intention to construct an ADU. To receive the building permit fee discount, the building permit needs to be issued by December 31, 2029. The reduction in building permit fees is anticipated to cost the City over $900,000 during the planning period. This represents an approximately 15 percent decrease in permitting revenue to the City. This is a significant impact to the City’s budget; however, the commitment to creating additional housing units in Monte Sereno is one that the City Council is dedicated to as demonstrated by this financial investment.

In addition to the building permit fee discount, Program I incentivizes ADU construction with outreach, pre-approved ADU plans, the removal of locally restrictive ADU requirements, and responding to constraints in staff capacity – if demonstrated – by increasing staff capacity.

A new state law, AB 1033 (2022), authorizes jurisdictions to adopt a local ordinance to allow the separate conveyance of the primary dwelling unit and accessory dwelling unit or units as condominiums. This allows for greater housing mobility, as residents can choose to sell an ADU to obtain more financial liquidity or to move into an ADU and sell the primary residence as a “downsize” option. Program I includes a commitment to present an AB 1033 ordinance to Council in early 2024.

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.

ADUs and RHNA Strategy
The ADU strategy has been developed to address the community’s most pressing housing needs, which involves the construction of affordable housing. While 225 Monte Sereno property owners have provided written intentions to construct an ADU on their property within this Planning Period, based on the historical trends and consultation with the California Department of Housing

Chapter 4.0 Vacant and Available Sites 4-11
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 and Community Development, 160 new ADUs are projected for purposes of meeting RHNA requirements due to three adjustment factors:
• ADU Utilization
As noted previously in this chapter, only 93 percent of ADUs reported in surveys were used as residences. Therefore, a 93 percent adjustment factor is included to acknowledge that historically, seven percent of ADUs in Monte Sereno were not used as residences. • ADU Development
It is likely that not all of the 225 property owners will follow through with their commitment to develop an ADU within the planning period. This could be for a variety of reasons, such as change of ownership or change of plans. While it is true that property owners who did not indicate their commitment may change their minds and decide to construct an ADU on their property, an adjustment factor is necessary to acknowledge typical lack of follow through. An 85 percent adjustment factor is used to capture these incidences.
• ADU Constraints
The 225 property owners who committed to ADU development were not required to research whether an ADU would encounter environmental constraints on their property (due to lack of space or other environmental concerns). Based on a preliminary review of all residential properties in Monte Sereno, a 90 percent adjustment factor is used.

Table 4-6 demonstrates how the 225 property owners with intention to develop an ADU translates to 160 ADUs counted towards RHNA. The 160 total ADUs used to meet RHNA are allocated 30 percent very low income, 30 percent low income, 30 percent moderate income, and 10 percent above moderate income as per ABAG’s “Using ADUs to Satisfy RHNA” Technical Memo.

Chapter 4.0 Vacant and Available Sites 4-12
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 Table 4-6 ADU Adjustment Factors
Property
Owners
Intending to
Develop ADU
(A)
Adjustment Factor
RHNA
(A x E) Utilization
(B)
Development
(C)
Constraints
(D)
Total
(E = B x C x D)
225 .93 .85 .90 .71 160
Constraints
Recent state legislation has removed all significant constraints on the development of ADUs. The City of Monte Sereno is following current ADU requirements under state law and has taken efforts to facilitate and incentivize ADU construction by lowering building permitting fees by 50 percent.

Outreach
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.

A WVCS Picnic Meeting Panelist and Monte Sereno resident, shared the following comments based on the benefits and experiences that living in an ADU offered. See Appendix F for full meeting report.
“ADUs give you a sense of home, having a place that you can come home to, make dinner, sleep safely and comfortably. For me it was just wonderful, because it felt like my home. Even though it was in the back of another home, it still felt like my home. It’s definitely a needed part of our area…” “Living in an ADU at the time was really wonderful. You don’t have a lot of people who are right next to you making a lot of noise. I was able to do my job, get good sleep, and be a good part of the community. The ADU gave me a sense of home … because it was like my own home. So, I always took care of it and I always kept it clean. It was a really nice feeling to have a home. ADUs are definitely the way to go now, with the area, we need to have people in our area that can have affordable housing, and ADUs are wonderful, whether it's for seniors, older people, younger people,

Chapter 4.0 Vacant and Available Sites 4-13
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 people with families. It’s a great thing to put into your home…it really does help the community and people living there.”
Figure 4-2 illustrates the properties that intend to construct an ADU in the next eight-year planning cycle.

Junior Accessory Dwelling Units
JADU construction has increased during the past several years. No permits for JADUs were issued in 2018 or 2019, one (1) new JADU was permitted in 2020, three (3) were permitted in 2021, and one (1) in 2022. That provides a five-year annual average of one new JADU each year. Table 4-7 provides a summary of the permits issued for new JADUs:

Table 4-7 JADU Building Permits Issued
Date Building Permit Issues Building Permit Number
12/14/2020 2020-7031
2/22/2021 2020-7255
8/16/2021 2021-0105
10/13/2021 2021-0199
9/30/2022 2022-0166
SOURCE: City of Monte Sereno, 2023

Chapter 4.0 Vacant and Available Sites 4-14
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 Figure 4-2 Properties Planning to Construct an ADU
SOURCE: EMC Planning Group
Monte Sereno has not been reporting the new JADUs in the Annual Progress Reports (APR) and the instructions provided for that reporting only specify and define ADUs, not JADUs. Additionally, the definition of an ADU in this documentation is not clear that it includes JADUs. However, through this 6th Cycle Housing Element update, it was brough to the City’s attention that JADUs should be included in the APR as new units and can be included in RHNA projections.

Chapter 4.0 Vacant and Available Sites 4-15
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 Based on the historical data of the number of JADU permits issued, eight (8) new JADUs are projected to be constructed during this Planning Period. As the use and affordability levels of the past permitted JADUs were not surveyed (as they were not reported), the ABAG methodology has been used to project the affordability levels of these eight planned units.

Constraints
Recent state legislation has removed all significant constraints on the development of JADUs. The City of Monte Sereno is following current JADU requirements under state law.

ADU Amnesty
The City of Monte Sereno adopted an ADU amnesty ordinance on December 20, 2022 in order to:
 Legalize existing but noncompliant/unknown accessory dwelling units that were created prior to December 31, 2020;
 Bring unpermitted housing units into the official housing stock to contribute towards meeting regional housing needs allocation (RHNA) by obtaining building permits by December 31, 2031; and
 Ensure safe and sanitary living conditions for current and future tenants.

The amnesty program met expressed resident interest in formalizing and permitting use of pool houses and other similar spaces for accessory dwelling purposes. It will allow property owners with ADUs not currently recognized as “units” in the Census the opportunity to register these units with the City without facing fines for non-permitted construction.

The City anticipates the accessory dwelling unit amnesty program will, at a minimum bring 18 previously unpermitted units not previously recorded by the Census into the City’s official housing stock during previous planning periods, as supported by the following findings which include data from the City’s ADU survey and existing housing use:
 Between 2018 and 2022, 61 building permits were issued for ADUs, representing 5 percent of all single-family homes in Monte Sereno, and an average of 1.25 percent of homes adding an ADU each year; and
 There are approximately 102 parcels with a pool house or other structure suitable for a nonregulated ADU with minor modifications, representing approximately seven percent of the residential housing stock in the City.
 The City received 225 written intentions to construct ADUs on single-family home lots, representing an additional 19 percent of all single-family homes, broken down to 2.3 percent of single-family homes on average each year of the planning period intending to develop an ADU on their property.

Chapter 4.0 Vacant and Available Sites 4-16
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024  There has already been one amnesty ADU permit, from March 2023, before the City has conducted any outreach.

The estimate of 10 ADU amnesty units, representing less than 1.5 percent of all single-family homes, broken down to 0.25 percent of all single-family homes each year of the planning period is sufficiently within the discrepancy of the yearly average 1.25 percent of single-family homes that had already formally added an ADU, and the yearly average of 2.3 percent of single-family homes that intend to add an ADU. In addition to the stock of potential non-regulated ADU housing in the City, Monte Sereno has seen interest from residents in an amnesty ADU during the outreach preceding the adoption of an ADU Amnesty ordinance in December 2022. Since that adoption, there has been one ADU amnesty permit granted.

As an incentive to property owners to apply for an ADU amnesty permit, the City is offering certain modified standards and incentives to accommodate existing buildings. In addition to the flexibility in development standards identified for new ADUs, the following additional incentives have been identified for evaluation to encourage legalization of existing ADUs:
 Remove the requirement that the property owner reside in either the main house or the ADU;  Elimination of any code enforcement penalties or increase permit fees; and  Reduce building permit fees by 50 percent (Program I).

The City will also perform extensive community outreach on the ADU amnesty program, including city-wide mailings, social media postings, and information provided at the City Hall front counter.

To receive an ADU amnesty permit, all health and safety code violations must be corrected based on City building inspections of the unit. For purposes of crediting the ADU towards the RHNA, property owners will be required to demonstrate that the unit did not have an individual address as of the 2000 U.S. Census and does not have a building permit of record, and thus has not been accounted for in the count of existing units in the City’s previous RHNA cycles. Acceptable documentation may include:
 Written affidavits from current and/or former owners, tenants, or neighbors, signed and notarized under penalty of perjury;
 County Assessor records;
 Rental contracts and/or receipts;
 Income tax records; and
 Utility bills.

Based on affordability assumptions and the predominance of ADU use for very low-income households (see Table 4-5), the 10 ADU Amnesty units are broken down into: three very lowPage 142 of 376 Chapter 4.0 Vacant and Available Sites 4-17
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 income units, three low-income units, three moderate income units, and one above moderateincome unit.

Constraints
Recent state legislation has removed all significant constraints on the development of ADUs. The City of Monte Sereno is following current ADU requirements under state law and has taken efforts to facilitate ADU construction. Additional incentives are provided to encourage property owners to obtain building permits for ADUs that were not permitted such as not imposing any code enforcement penalties and by reducing building permitting fees by 50 percent.

Outreach
Monte Sereno will expand its outreach concerning ADU amnesty in order to build public trust and knowledge of the program. Extensive community outreach will reassure the public that applicants will not be penalized for illegal construction and will explaining the benefits of legalization (increase in property value, allowance for relaxed development standards, reduced fees, opportunity to register unit without facing fines). Program I (Accessory Dwelling Units) includes commitment to public outreach of the amnesty program including city-wide mailing, social media postings, and information to be provided at the City Hall front counter.

Senate Bill 9
City officials have adopted Senate Bill 9 (SB 9) development guidelines in line with the state law and have revised existing regulations of SB 9 developments. However, there was limited interest in SB 9 units expressed during the public outreach period when this plan was prepared. However, since the City Council has committed to increasing the maximum building size from the current 800 square foot limit (Program E – Review SB9 Regulations), property owner interest in SB9 projects has increased. Additionally, Program E (Review SB9 Regulations) commits to enhancing the state laws to further encourage housing production by requiring two units be constructed on each new lot created through an SB9 Urban Lot Split. One Urban Lot Split application and four written intentions for SB 9 developments or urban lot splits are dispersed throughout the community and include the lots at:
 16101 Greenwood Road (APN 510-50-001)
• 1.44 acres with one existing single-family home;
• Zoning: R-1-44; and
• The site is currently served by wet and dry utilities and does not have any barriers to development.
 18411 Lexington Drive (APN 410-27-013)
• 1.08 acres with one existing single-family home;

Chapter 4.0 Vacant and Available Sites 4-18
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 • Zoning: R-1-44; and
• The site is currently served by wet and dry utilities and does not have any barriers to development.
 16248 Oakhurst Drive (APN 510-20-054)
• 1.05 acres with one existing single-family home;
• Zoning: R-1-20; and
• The site is currently served by wet and dry utilities and does not have any barriers to development.
 15950 Romita Court (APN 510-59-005)
• 2.75 acres with one existing single-family home and one ADU; • Zoning: R-1-44; and
• The site is currently served by wet and dry utilities and does not have any barriers to development.
 17795 Vineland Avenue (APN 409-41-013)
• 0.97 acres with one existing single-family home;
• Zoning: R-1-44; and
• The site is currently served by wet and dry utilities and does not have any barriers to development.

Based on affordability assumptions for construction of a new single-family residence in Monte Sereno (see Appendix C – Housing Constraints) and the predominance of ADU use for very lowincome households (see Table 4-5), the SB 9 development sites are allocated two new net units each – one new main unit and one new ADUs – at above moderate income. Program E (Review of SB 9 Regulations) commits to requiring two units to be developed on sites created through an SB 9 Urban Lot Split, one main house and one ADU-sized house (see Chapter 2 for full program details).

Vacant Sites
The outreach for this housing element has identified two (2) vacant parcels in Monte Sereno suitable for housing:
 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; and

Chapter 4.0 Vacant and Available Sites 4-19
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024  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.

Both sites are suitable for one primary house and one ADU. Based on affordability assumptions for construction of a new single-family residence in Monte Sereno (see Appendix C – Housing Constraints) and the predominance of ADU use for very low-income households (see Table 4-5), the vacant sites are allocated two (2) units each: one at above moderate-income and one at very lowincome.

Nonvacant Sites Analysis
Existing Uses
 16011 Greenwood Road: A 6,239 square foot single-family home built in 1983 occupying only the front half of the parcel with trees along the edges of the property and adjacent to the home.

The property is surrounded by other single-family homes;  18411 Lexington Drive: A 4,140 square foot single-family home built in 1946 occupying only the front half of the parcel with a slope through the middle of the parcel. The property is surrounded by other single-family homes;
 16248 Oakhurst Drive: A 3,083 square foot single-family home built in 1941 occupying only a back portion of the parcel with a slope through the middle of the parcel. The property is surrounded by other single-family homes;
 15950 Romita Court: A 5,325 square foot single-family home built in 1916 occupying only a front portion of the parcel and an approximately 700 square foot ADU built in 1916 occupying a small portion of the back of the property with a slope through the middle of the parcel. The property is surrounded by other single-family homes; and  17795 Vineland Avenue: A 2,0125 square foot single-family home built in 1964 occupying only half of the property. The property is surrounded by other single-family homes.

Development Trends
Few SB 9 lot splits or residential developments have occurred within the City and limited interest in SB 9 units was expressed during the public outreach efforts. Feedback that has been received is that the current 800 square foot building size limit is a constraint for property owners interested in SB9 projects. However, the City has endorsed SB 9 with inclusion of Program E (Review SB 9 Regulations) in which the city is committed to increasing the maximum building size as well as further enhancing state law by requiring two housing units be constructed in each lot created by an SB 9 Urban Lot Split.

Chapter 4.0 Vacant and Available Sites 4-20
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 Market Conditions
Based on affordability assumptions for construction of a new single-family residences in Monte Sereno (see Appendix C – Housing Constraints), high land costs (average home value of over $3.3 million as noted in Appendix B – Housing Needs Assessment), construction costs, and low local land availability, future development is more likely to follow more intensive infill patterns on existing developed parcels such as SB 9 developments and urban lot splits.

Availability of Regulatory and/or Other Incentives
City officials have adopted SB 9 development guidelines in line with the state law and have committed to revising regulations of SB 9 developments including removing the requirement of a maximum building size of 800 square foot and requiring two units be constructed on each lot crated through an SB 9 Urban Lot Split (Program E).

Constraints
To date, few property owners in Monte Sereno have expressed interest in building new singlefamily units under SB 9 even during outreach for this Element. To have HCD consider SB 9 units as a reasonable expectation for construction during this eight-year cycle, property owner declared interest is necessary. The City has received four letters of declared interest and one Urban Lot Split application, noted above.

Program E (Review SB 9 Regulations) commits to increasing the maximum building size allowed and to further enhance state law by requiring two units be constructed on each lot created through an SB 9 Urban Lot Split.

Outreach
The City of Monte Sereno conducted personalized outreach after City Council directed for an ordinance revision that incentivizes SB 9 developments by removing lot limits on June 6, 2023.

The City collected personal written intentions from four local property owners to develop City officials have adopted SB 9 development guidelines in line with the state law and have revised existing regulations of SB 9 developments including removing the requirement of a maximum building size of 800 square foot.

4.5 Summary and Conclusions
For communities like Monte Sereno that are largely built out and surrounded by other communities, ADU development is the primary practical solution to providing an allocated share of future housing for the San Francisco Bay Area. Property owner interest, education, and follow-through with letters of intention will be pivotal for facilitating opportunities to add housing through recent construction, development on vacant sites, ADU construction, ADU amnesty, and through Senate Bill 9 (SB9) developments. Monte Sereno’s historic single-family zoning must allow for multiple

Chapter 4.0 Vacant and Available Sites 4-21
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 residences on a parcel: at least one ADU, one JADU, and one SB9 residential unit. This, plus the commitment in Program I (Accessory Dwelling Units) to study allowing ADUs greater than 1,200 square feet in size on properties that are one acre or greater, results in the ability for what is effectively multi-family housing distributed throughout the City. These units, as described in the affordability survey (Table 4-5), have a high degree of affordability and provide housing choice and opportunity throughout the City.

Monte Sereno Fair Housing Assessment A

APPENDIX

Table of Contents
APPENDIX A MONTE SERENO FAIR HOUSING ASSESSMENT .........................................A-1 A.1 Introduction ...........................................................................................................................A-1 A.2 Fair Housing Enforcement and Outreach Capacity.........................................................A-9 A.3 Integration and Segregation ...............................................................................................A-13 A.4 Access to Opportunity........................................................................................................A-22 A.5 Disproportionate Housing Needs.....................................................................................A-25 A.6 Conclusion............................................................................................................................A-30 Tables
Table A-1 Median Income Comparisons, City and County................................................ A-19 Figures
Figure A-1 Major Public and Legal Actions that Influence Fair Access to Housing ..........A-5 Figure A-2 Fair Housing Complaints and Inquiries.............................................................. A-12 Figure A-3 Segregation and Integration .................................................................................. A-17 Figure A-4 Map Showing White Majority Tracts in Monte Sereno .................................... A-20 Figure A-5 Map Showing RCAA’s According to Census Tract .......................................... A-21 Figure A-6 Access to Opportunity........................................................................................... A-26 Figure A-7 Disproportionate Housing Needs........................................................................ A-31

Appendix A Fair Housing Assessment A-1
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 Appendix A
Monte Sereno Fair Housing Assessment
A.1 Introduction
In 2018, Governor Brown signed Assembly Bill (AB 686) requiring all public agencies in the state to affirmatively further fair housing (AFFH) beginning January 1, 2019.1 The new requirements went into effect on January 1, 2019 and required all public agencies to “administer programs and activities relating to housing and community development in a manner that affirmatively furthers fair housing, and take no action inconsistent with this obligation”2 AB 686 also made changes to Housing Element Law to incorporate requirements to AFFH as part of the housing element and general plan to include an analysis of fair housing outreach and capacity, integration and segregation, access to opportunity, disparate housing needs, and current fair housing practices.

The following report was prepared by Root Policy Research (Denver, Colorado) and is based on and expands previous work commissioned by the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC). The ABAG/MTC report was prepared in collaboration with the University of California Merced Urban Policy Lab and was entitled: “AFFH Segregation Report: Monte Sereno.” See Attachment G for the full ABAG/MTC report.
1 Public agencies receiving funding from the U.S. Department of Housing and Urban Development (HUD) are also required to demonstrate their commitment to AFFH. The federal obligation stems from the fair housing component of the federal Civil Rights Act mandating federal fund recipients to take “meaningful actions” to address segregation and related barriers to fair housing choice. 2 California Department of Housing and Community Development Guidance, 2021, page 9.

Appendix A Fair Housing Assessment A-2
Monte Sereno 6th Cycle Housing Element (2023-2031) Adoption Draft: May 2024 Affirmatively Furthering Fair Housing
“Affirmatively furthering fair housing” means taking 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. Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity, 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.

The duty to affirmatively further fair housing extends to all of a public agency’s activities and programs relating to housing and community development. (Gov. Code, § 8899.50, subd. (a)(1).)”
SOURCE: California Department of Housing and Community Development Guidance, 2021, page 14.

History of segregation in the region
The United States’ oldest cities have a history of
mandating segregated living patterns—and Northern
California cities are no exception. ABAG, in its recent Fair Housing Equity Assessment, attributes segregation
in the Bay area to historically discriminatory
practices—highlighting redlining and discriminatory
mortgage approvals—as well as “structural inequities”
in society, and “self-segregation” (i.e., preferences to live near similar people).

Researcher Richard Rothstein’s 2017 book The Color of
Law: A Forgotten History of How Our Government Segregated America chronicles how the public sector contributed to the segregation that exists today. Rothstein highlights several significant developments in the Bay area region that played a large role in where the region’s non-White residents settled.

In 1955, builders began developing workforce housing for the Ford Corporation’s plant in the Santa Clara County region. Initially the units were segregated as no one would sell to the local black workers. The American Friends Service Committee (AFSC) worked to find builders who would build integrated subdivisions. Unfortunately, after four purchased plots were subsequently rezoned to prevent integrated housing, the original builder quit. After multiple This history of segregation
in the region is important
not only to understand how
residential settlement
patterns came about—but,
more importantly, to
explain differences in
housing opportunity among
residents today. In sum, not
all residents had the ability
to build housing wealth or
achieve economic
opportunity. This
historically unequal playing
field in part determines why
residents have different
housing needs today.