Ord 2277 - Rescind Ords & Amend Chptr 29 Regarding AHOZORDINANCE 2277
ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
RESCINDING ORDINANCES 2226, 2227,2228, AND 2229, AND AMENDING
ARTICLE VIII, DIVISION 5 OF CHAPTER 29 (ZONING REGULATIONS)
OF THE TOWN CODE
REGARDING AFFORDABLE HOUSING OVERLAY ZONES
WHEREAS, the State of California requires each city and county to update their housing
elements on a regular cycle and plan for meeting their fair share of the RHNA for the State; and
WHEREAS, on March 5, 2012, the Town Council adopted, and on September 20, 2012
the State Department of Housing and Community Development (HCD) certified, the 2007 -2014
Housing Element; and
WHEREAS, the key implementation program for meeting the Town's Regional Housing
Needs Allocation (RHNA) in the 2007 -2014 Housing Element was Action HOU -2.1, which
required amendment of the Town Code to include and Affordable Housing Overlay Zone
(AHOZ); and
WHEREAS, on November 18, 2013, the Town Council adopted Ordinance 2224 which
amended the Town Code to include an AHOZ and five properties that were designated as AHOZ
sites, and Ordinances 2225, 2226, 2227, 2228, and 2229 which applied the AHOZ overlay to the
five properties; and
WHEREAS, on May 5, 2015, the Town Council adopted, and on May 20, 2015 HCD
certified, the 2015 -2023 Housing Element; and
WHEREAS, the 2015 -2023 Housing Element did not rely heavily on the AHOZ sites, but
identified other community strategies to meet the Town's RHNA, such that the only AHOZ site
Iof8
Ordinance 2277 August 21, 2018
to remain in the 2015 -2023 Housing Element Action HOU -2.1 was the Southbay Development
site, located on Knowles Drive, East of Winchester Boulevard, APN 424 -32 -077; and
WHEREAS, on July 11, 2018, the required amendments to Chapter 29 (Zoning
Regulations) of the Town Code were considered by the Planning Commission, and the Planning
Commission forwarded a recommendation for approval to the Town Council; and
WHEREAS, this matter was regularly noticed in conformance with State and Town law
and came before the Town Council for public hearing on August 7, 2018;
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES ORDAIN
AS FOLLOWS:
SECTION I
Ordinances 2226, 2227, 2228, and 2229 are hereby rescinded and the AHOZ overlay
designation is removed from the following properties:
1. Los Gatos Lodge, 50 Los Gatos Saratoga Road, APN 529 -24 -032
2. Los Gatos Lodge, 50 Los Gatos Saratoga Road, APN 529 -24 -001
3. Higgins Business Park, 400 Blossom Hill Road, APN 529 -16 -071
4. Los Gatos Oaks Apts., 517 Blossom Hill Road, APN 529 -16 -042
SECTION II
Chapter 29 of the Town Code is hereby amended to read as follows:
ARTICLE VIII. DIVISION 5— AFFORDABLE HOUSING OVERLAY ZONE
Sec. 29.80.505. - Intent.
The affordable housing overlay zone (AHOZ) ordinance in this division is intended to increase
the supply and the mix of housing types, tenure, and affordability within the Town of Los Gatos.
Through appropriate densities, concessions, and fee deferrals or waivers, the affordable housing
overlay zone encourages the development of housing affordable to all income levels on one (1)
property within the Town that is deemed to be most appropriate for such uses. The housing
element lists the one (1) property within the Town of Los Gatos as a key housing opportunity site
for mixed income affordable housing projects. The designation of this site will assist the Town in
meeting its fair share of the region's housing needs required by the State.
(Ord. No. 2224, § I, 11- 18 -13)
2of8
Ordinance 2277 August 21, 2018
Sec. 29.80.510. - AHOZ and underlying zoning.
A property that has the AHOZ designation may be developed either in the manner provided in
this division or the manner provided in the underlying zone, but not both; use of the overlay zone
and the underlying zone are mutually exclusive alternatives. Once the land has developed in the
manner provided in the underlying zoning, the property owner shall relinquish the right to
redevelop the land using the AHOZ overlay.
(Ord. No. 2224, § I, 11- 18 -13)
Sec. 29.80.515. - Applicability of regulations.
(a) This division applies to the one (1) property listed on Table 6 -1 of Chapter 6 (Housing Sites
Inventory) of the 2015 -23 Housing Element Technical Appendix and as identified below:
Affordable housing overlay zone (AHOZ) property:
(1) Southbay Development, Knowles Drive east of Winchester Boulevard, APN 424 -32 -077
(b) The provisions of this division shall not apply if an applicant requests to use the General
Plan Density Bonus Policy (HOU -1.3). If the applicant submits a development project application
utilizing this density bonus program, the base density on which the bonus is calculated shall be
the density of the existing zoning of the property.
(Ord. No. 2224, § I, 11- 18 -13)
Sec. 29.80.520. - Qualification.
In order to qualify for the benefits of this overlay zone, residential development projects shall
comply with all of the following:
(a) Include the following minimum percentage of total units in the development with rents
or sales prices that are restricted to the area median income household affordability
levels noted below. The income limits shall be established based on the current year area
median income for Santa Clara County as set by the appropriate State or Federal
government housing agencies.
Required unit affordability levels
Low and /or Moderate and /or Above
Site Very Low and Moderate
Below
Southbay Development 40% 60%
(APN 424 -32 -077)
(b) Based on a recommendation by the Planning Commission after its review of a project, the
Town Council may approve a modification to the affordability ratios in subsection (a) if
the applicant can demonstrate with actual project specific pro forma, financial and local
market data, that a specific ratio is not financially feasible. The Town Council may only
3of8
Ordinance 2277 August 21, 2018
approve a modification to a ratio if the overall Regional Housing Needs Allocation (RHNA)
unit production for an individual income category (e.g. very low, low and moderate
income) has been achieved by the Town during the applicable housing element period.
(c) Ensure that affordable units are deed - restricted for a period of not less than fifty -five (55)
years, or for the longest feasible time. An affordable housing agreement shall be executed
prior to recording any final map for the underlying property or prior to the issuance of
any building permit for the housing development, whichever comes first, unless the
Community Development Director approves an alternative phasing plan, at which time
the affordable housing agreement shall be executed no later than the issuance of the
certificate for the fifty -first percent of the market rate units. The affordable housing
agreement shall be binding on all future owners and successors of interest of the housing
development.
(Ord. No. 2224, § I, 11- 18 -13)
Sec. 29.80.525. - Permitted uses in the AHOZ.
(a) Multifamily dwellings;
(b) Two - family dwellings;
(c) Single- family dwellings.
(Ord. No. 2224, § I, 11- 18 -13)
Sec. 29.80.530. - Conditional uses permitted.
No conditional use permit shall be required for a housing development that meets the intent
and regulations contained in this division.
(Ord. No. 2224, § I, 11- 18 -13)
Sec. 29.80.535. - Application.
Residential developments using the AHOZ standards shall be required to submit applications
for architecture and site review. The application shall be subject to review by the Planning
Commission with a recommendation to Town Council and the review by Town Council shall be
final.
(Ord. No. 2224, § I, 11- 18 -13)
Sec. 29.80.540. - Affordable housing overlay zones general development standards.
Proposed development within the affordable housing overlay zones shall be designed and
constructed in conformity with the development standards in Table 1A (Overlay Zones
Development Standards) and Table 1B (Overlay Zones Development Setbacks).
4of8
Ordinance 2277 August 21, 2018
Site
Southbay
Development
(APN 424 -32 -077)
Table 1A (Overlay Zones Development Standards)
Maximum Density
Lot Maximum Units
Coverage Height Limit (ft) 1 Per Acre
30 feet w /separate garage;
40% 35 feet w /integrated
garage
Parking Ratio Z
0 -1 bedroom: 1 space
20 2 -3 bedrooms: 2 spaces
4+ bedrooms: 2.5 spaces
1. Building height is increased to 35 feet for residential products that integrate the garage
on the first floor, underground or is constructed on a parking podium. Additional height
increase may be granted through the architecture and site review process.
2. Tandem parking is permitted.
Site
Table 1B (Overlay Zones Development Setbacks)
Required Setbacks
Southbay Development (APN 25 ft. from Knowles Avenue property line;
424 -32 -077) 40 ft. from Los Gatos Creek property line;
25 ft. from Southwest Property Line;
West and internal setbacks to be determined by
architecture and site review process
(Ord. No. 2224, § I, 11- 18 -13)
Sec. 29.80.545. - Affordable housing overlay zones development incentives.
(a) Concessions and incentives. Applications meeting the intent of the AHOZ will be
automatically granted four (4) concessions at the applicant's sole discretion. The concessions are
reductions in the development standards specified in this section, and processing fee waivers.
The following development incentives are available to qualifying residential developments within
an AHOZ:
(1) Parking standards. Parking standards may be reduced if a parking reduction is requested
as one (1) of the four (4) concessions. Parking may be reduced as follows:
a. Reduction to one (1) space per unit for units reserved for seniors or persons with
disabilities.
b. Reduction to one (1) space per unit for developments within one - quarter (%) mile to
the proposed Vasona Light Rail Station.
(2) Property setbacks. Any two (2) property setbacks may be reduced by up to fifty (50)
percent if an applicant selects the setback reduction as one (1) of the four (4) concessions.
The two (2) setback reductions are considered one (1) concession.
(3) Lot coverage. The lot coverage may be increased up to fifty (50) percent if the applicant
selects the lot coverage increase as one (1) of the four (4) concessions.
5of8
Ordinance 2277 August 21, 2018
(4) Processing fees. The Town shall waive or defer planning, engineering, and building
processing fees, except those that are paid directly to Town consultants or for technical
studies.
The developer can select one (1) of the following types of fees to be waived as one (1) of
the four (4) available concessions:
a. Planning and engineering application fees (but not Town consultant fees).
b. Building plan check and inspection fees.
c. Construction mitigation fee.
The fees selected shall be waived if the applicant selects a fee waiver as one (1) of the
four (4) automatically granted concessions.
If the developer selects a deferral of all fees noted above rather than a waiver, the fees
shall be deferred to the time of issuance of the certificate of occupancy for each unit.
(5) Priority processing. The Town shall give qualifying projects the highest processing priority
for planning entitlements, building plan check and building inspection.
(Ord. No. 2224, § I, 11- 18 -13)
Sec. 29.80.550. - Architecture and site review process.
(a) Affordable housing overlay zone design guidelines. All projects shall comply with the
adopted affordable housing overlay zone design guidelines in effect at the time of entitlement
approval.
(b) Architecture and site approval. All projects shall require an architecture and site
application approval. The Planning Commission shall review each project and make a
recommendation to the Town Council. The Town Council is the final decision making authority
for AHOZ applications. The Town Council shall adopt a resolution that documents the
architecture and site application decision.
(1) Architectural design. Affordable units within a mixed affordable /market rate
development may be allowed to vary in interior and exterior design and square footage
from market rate units as long as the project remains architecturally harmonious as
determined by the approval body. Attached units, smaller (in square footage) units and
other design variations from market rate units may be permitted within reason to reduce
costs of providing affordable units subject to the required architecture and site approval
process.
(c) Environmental review. All projects shall be subject to the requirements of the California
Environmental Quality Act.
(d) Findings. In order to qualify for a height increase over the maximum stated in Table 1A,
the Planning Commission shall make a recommendation and the Town Council shall find that:
(1) The building massing and dimensional ratios of proposed building components create a
harmonious visual balance and contribute to the architectural character of the project or
its surroundings.
6of8
Ordinance 2277 August 21, 2018
(2) The height increase is necessary to achieve excellence in architectural design and cannot
be accommodated through alternative means such as reducing overall floor to ceiling
heights.
(e) Timing of affordable unit construction. Affordable units must be constructed concurrently
with market -rate units. The affordable units shall be integrated into the market rate component
of the plan to the greatest extent feasible. If complete integration cannot be achieved, the
applicant shall provide justification for not meeting the intent of this section and why such
integration is not feasible. The applicant shall submit a plan of the affordable and market rate
unit distribution in the development to the Town. The Planning Commission shall review and
make a recommendation on the affordable and market rate unit distribution plan and the Town
Council shall review the final plan for approval.
(Ord. No. 2224, § I, 11- 18 -13)
SECTION III
The Town Council finds as follows:
A. This ordinance is not subject to review under CEQA pursuant to section
15061(b)(3), in that it can be seen with certainty that there is no possibility that the proposed
amendment to the Town Code would have significant impact on the environment; and
B. The proposed Town Code amendments are consistent with the General Plan
and its Elements.
SECTION IV
If any provision of this ordinance or the application thereof to any person or
circumstance is held invalid, such invalidity shall not affect other provisions or applications of
the ordinance which can be given effect without the invalid provision or application, and to this
end the provisions of this ordinance are severable. This Town Council hereby declares that it
would have adopted this ordinance irrespective of the invalidity of any particular portion
thereof and intends that the invalid portions should be severed and the balance of the
ordinance be enforced.
SECTION V
Except as expressly modified in this Ordinance, all other sections set forth in the Los
Gatos Town Code shall remain unchanged and shall be in full force and effect.
7of8
Ordinance 2277 August 21, 2018
SECTION VI
This Ordinance was introduced at a regular meeting of the Town Council of the Town of
Los Gatos on the 7`h day of August, 2018, and adopted by the following vote as an ordinance of
the Town Council of the Town of Los Gatos at a regular meeting of the Town Council on the 215
day of August, 2018, and becomes effective 30 days after it is adopted.
In lieu of publication of the full text of the ordinance within fifteen (15) days after its
passage a summary of the ordinance may be published at least five (5) days prior to and fifteen
(15) days after adoption by the Town Council and a certified copy shall be posted in the office
of the Town Clerk, pursuant to GC 36933(c)(1).
COUNCIL MEMBERS:
AYES: Marcia Jensen, Steve Leonardis, Marico Sayoc, Barbara Spector, Mayor Rob Rennie
NAYS: None.
ABSENT: None.
ABSTAIN: None.
SIGNED:
�jJ��4 ♦y
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: qP/5/19
ATTEST:
TOWN CLERK ADi. INiSTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: --QP 4I —
8of8
Ordinance 2277 August 21, 2018