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PAGE 2 OF 4 <br />SUBJECT: AMENDMENTS TO THE TOWN CODE REGARDING AFFORDABLE HOUSING <br />OVERLAY ZONES. TOWN CODE AMENDMENT/A-18-001 <br />AUGUST 2, 2018 <br /> <br /> <br />S:\COUNCIL REPORTS\2018\08-07-18 Commission Interviews and Closed Session\Chapter 29 Amendments\13 Staff Report FINAL.docx <br /> <br /> 8/2/2018 4:32 PM <br /> <br />BACKGROUND (Continued): <br /> <br />• Los Gatos Lodge, 50 Los Gatos Saratoga Road, APN 529-24-032 <br />• Los Gatos Lodge, 50 Los Gatos Saratoga Road, APN 529-24-001 <br />• Higgins Business Park, 400 Blossom Hill Road, APN 529-16-071 <br />• Los Gatos Oaks Apts., 517 Blossom Hill Road, APN 529-16-042 <br /> <br />In the subsequent Housing Element cycle, HCD commented to the Town that the AHOZ Town <br />Code is too restrictive and that the affordability requirements would become a barrier to <br />housing production. On May 5, 2015, the Town Council adopted the 2015-2023 Housing <br />Element with an action item (HOU-2.1) to modify the Town Code relating to AHOZ. HCD <br />subsequently certified the Housing Element on May 20, 2015. <br /> <br />DISCUSSION: <br /> <br />A. Housing Element <br /> <br />The 2015-2023 Housing Element did not rely as heavily on the AHOZ sites to meet the <br />Town’s RHNA as the 2007-2014 Housing Element. The 2015-2023 Housing Element <br />identified other community strategies to meet the Town’s RHNA (Attachment 1, Exhibit 2). <br />The community strategies did not include four of the five properties that were previously <br />designated as AHOZ sites. The only AHOZ site to remain in the 2015 -2023 Housing Element <br />was the Southbay Development site. <br /> <br />The proposed amendments are required to make the Town Code consistent with the <br />Town’s Housing Element and implement other requirements of Housing Element Action <br />HOU-2.1. <br /> <br />The proposed amendments (Attachment 3) will: <br /> <br />• Remove the AHOZ overlay from the four properties that are no longer AHOZ sites ; <br />• Rescind Ordinances 2226, 2227, 2228, and 2229; <br />• Remove references to the four properties that are no longer AHOZ sites; <br />• Modify other Town Code language to make it consistent with the removal of the <br />four properties that are no longer AHOZ sites; <br />• Replace the required affordable unit provisions by individual income categories with <br />a minimum 40 percent affordable (defined as 40 percent affordable to households <br />of low and/or very low income) housing requirement for the Southbay AHOZ site <br />based on the total number of units in the project as required by Housing Element <br />Action Hou-2.1; and