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02 Staff Report - Amendment to Adopt Housing Element UpdateM MEETING DATE: 11/12/02 ITEM NO. 2_ COUNCIL AGENDA REPORT DATE: November 7, 2002 TO: MAYOR AND TOWN COUNCIL FROM: DEBRA J. FIGONE, TOWN MANAGER SUBJECT: GENERAL PLAN AMENDMENT TO ADOPT THE HOUSING ELEMENT UPDATE: FILE # GP-02-01, ND-02-03. APPLICANT: TOWN OF LOS GATOS RECOMMENDATION: 1. Open the public hearing; 2. Close the public hearing; 3. Find that the Housing Element update is internally consistent with the General Plan; 4. Make the Negative Declaration; 5. Adopt the Resolution Updating the Housing Element of the General Plan. BACKGROUND: The current Housing Element was adopted in 1997. When the General Plan was adopted in July 2000, the 1997 Housing Element was not amended as it was scheduled to be updated in 2002. The scheduled update commenced in September 2001, and the draft Housing Element Technical Appendix was released for public review on September 4, 2002. The Housing Program Strategy including goals, policies and implementations from the Technical Appendix (pages 69 through 80) will be incorporated in the General Plan update (included as Exhibit A to Attachment 1). The Technical Appendix will be kept on file as a reference document. On August 20, 2001 the Town Council authorized the Town Manager to enter into an agreement with housing consultant, Melanie Shaffer Freitas of Freitas + Freitas. Ms. Shaffer Freitas prepared the 1997 Housing Element and was successful in getting that document certified by the State. Ms. Shaffer Freitas worked with staff and the General Plan Committee in preparing the Draft Housing Element update. An administrative draft Housing Element update was completed in March 2002. Staff then worked with a four member Sub -Committee of the General Plan Committee in reviewing ►fir, PREPARED BY: Bud N. Lortz, Director of Community Development N:\DEV\SUZA NE\CounciiReporu•\Fwd. to TC\Housing Element.wpd Reviewed by: ✓` 3/Assistant Town Manager AV-- Town Attorney Clerk Finance k/ Community Development Revised: 11/7/02 2:13 pm Reformatted: 5/30/02 PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: HOUSING ELEMENT UPDATE November 8, 2002 the proposed goals, policies and implementations. The Town submitted the administrative draft to the State Department of Housing and Community Development (HCD) in June 2002, and received comments on July 17, 2002. The draft Housing Element was revised to address the comments from HCD and was resubmitted to the State on September 5, 2002. During the week of November 4, 2002, staff and the housing consultant have had discussions with HCD about two areas of concern (see discussion). Staff and the housing consultant have continued to work with the State to achieve certification of the Housing Element. The housing consultant will be at the Council meeting to make a brief presentation and to answer any questions the Council may have. The 45 day public review period for the Draft Housing Element was advertised in the Los Gatos Weekly Times on September 4, 2002. Informative e-mail messages and a memorandum were sent to surrounding cities, school districts, housing agencies and churches. The draft document was posted on the Town's web -site, and is available for review at the Library, Town Clerk's office, and Community Development Department. The public review period ended on October 21, 2002 at 5:00 pm. No written comments were received. DISCUSSION: General discussion on the content of the Draft Housing Element is contained on pages two through four of the report to the Planning Commission (Attachment 3). Affordable Housing Study Session The Council held an affordable housing study session on September 16, 2002. At that meeting, Council members requested information on the following: • Comparison of the Town 's planning process with that of other communities. • Are there areas of the Town's process that can be streamlined. Attachment 3 is a chart showing general information about the planning process for other Santa Clara County cities. To clarify the Town's approach the Council may want to consider adopting a policy about how the Town processes multi -family projects. The policy could describe what types of information is considered compelling evidence (e.g. recommendations from the Town's architectural consultant, traffic engineer, arborist or environmental or geotechnical consultants) to avoid processing delays. Additionally, projects should not be held up for traffic calming issues that already exist. Rather, a traffic calming study should be coordinated in accordance with the Town's Traffic Calming Policy. If the Council would like to see this pursued, staff can be directed to proceed and return with a report including further analysis of the issue and a draft policy. PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: HOUSING ELEMENT UPDATE November 8, 2002 • Status of Housing Trust Fund contribution. The agreement between the Santa Clara County Housing Trust and the Town states that the funds must be used to increase, improve or preserve affordable housing in the Town Redevelopment Area within 24 months of execution (April 2003). The Redevelopment Manager recently contacted the new director of the Housing Trust to begin discussions about a project. It is likely that the Housing Trust will request an extension to the agreement given that the 24 month period is only five months away. Staff will keep the Council apprised of any developments in discussions with the Housing Trust. • Ownership versus rental units. The consensus of the Council was to follow the General Plan guideline of maintaining 35% of the Town's housing stock as rental units. The BMP regulations will be analyzed in 2003, and may be amended to address rental versus ownership units in addition to several other components of the ordinance being evaluated. • Housing types to be encouraged. It is noted in the draft Housing Element that construction of condominiums has decreased in recent years due to a decrease in financing options, insurance requirements and construction defect litigation. If the Council feels it is important to encourage a particular type of housing such as condominiums, Town staff can play an advocacy role when a developer approaches the Town about building a multi -family housing project and will explore ways to provide incentives by amending Town regulations and procedures. Achievement of 92% of the Town 's Fair Share Housing Allocation (page 68, Attachment 4) This number is reflective of the Town's achievement, and as such is a positive number. The 92% figure shows a successful completion of housing objectives. There is not a number that HCD is specifically looking for; the intent is for the Town to assess how it did in the past in order to determine future housing strategies. Compared to other communities the Town has been extremely successful. HCD Review of Revised Housing Element Upon review of the revised draft Housing Element Technical Appendix, the Department of Housing & Community Development (HCD) has two remaining areas of concern. Staff and the housing consultant have had discussions with HCD staff on the following topics: PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: HOUSING ELEMENT UPDATE November 8, 2002 1. Increasing Density of Residential Property Among the July 2002 comments from HCD was a request that the Town rezone specific parcels to a higher density in order to meet housing production requirements. Following discussions with HCD, staff and the housing consultant included a housing program to rezone at least five acres to higher density. Staff suggested that the wording reflect that the Town will consider or evaluate rezoning properties to a higher density so that the program afforded the Town the maximum flexibility in its implementation. The Oka Road area was identified as a possible location for rezoning of property. Changing the zoning from R-1:8 to RM:5-12 or RM:12-20 would allow for a higher density and provide an opportunity for development of more affordable housing units. At the September 16 Study Session, the Council indicated that the wording suggested by staff was appropriate. However, HCD did not find that proposal acceptable. The State prefers to see specific parcels targeted for rezoning rather than leaving it unspecified. As an alternative staff has proposed to target the area within a half mile radius of the proposed Vasona light rail station for possible rezoning of land to a higher density. The Oka Road sites fall within this area. Attachment 4 is a map showing the target area. The map will be added to the Technical Appendix, and the language on page 71 will be modified to address HCD's concern. As shown in Exhibit A to Attachment 1, it is recommended that the implementing strategy will be worded as follows: H.I.1.1 Adequate Land Inventory: The Town will ensure that there is sufficient land available at appropriate zoning Lat,.,8uiic3 densities to meet its need for very low and moderate income households. In order to achieve this, the Town will assess the progress of the development community in providing very low, low and moderate income units during the latter part of 2003. If it appears that the cry low income an insufficient number of units are not -being produced as �iccelcd, the Town will consider rezoning up to five acres of vacant land to within a half mile radius of the future Vasona light rail station to a higher density (refer to the target area map in the Housing Element Technical Appendix). 2. Homeless Shelters The language on page 16 of the draft Housing Element Technical Appendix states that there are no site or zoning constraints specifically for homeless or transitional housing facilities. HCD would like to see language added on where such facilities might be allowed with an approved conditional use permit (CUP) and a statement on prioritization of applications. Staff suggests modifying the language to page 16 under Site and Zoning Requirements for Homeless/Transitional Facilities as follows: PAGE 5 MAYOR AND TOWN COUNCIL SUBJECT: HOUSING ELEMENT UPDATE November 8, 2002 There are no site or zoning constraints specifically for homeless or transitional housing facilities in Los Gatos. Residential Care Facilities or group homes are allowed in all residential zoning districts except RMH, and in office (0) and commercial (C-1, C-2, CH) zones with a 113 Ncuiiit. A homeless or transitional housing facility would be considered a group home. Small family group homes (six or fewer persons) are considered a principle permitted use in residential (RC, HR, R1, RM, RD, R-1D) zones. They are also allowed in office (0) and commercial(C-1, C-2 and CH) zones with a conditional use permit . Large family group homes (seven to 12 children or seven to 15 adults) are allowed in the above mentioned zones with a conditional use permit. At the time this report was distributed to the Council, staff had not received a final determination from HCD on the proposed language changes to the Technical Appendix. Staff will report on any new developments in discussions with HCD at the meeting. PLANNING COMMISSION ACTION: On October 23, 2002 the Planning Commission held a public hearing on the Draft Housing Element. The Commission recommended that the Council make the Negative Declaration with the following additions: 1. Any comments received during the review period should be adequately addressed. The Initial Study and Recommended Negative Declaration were distributed for public review on October 10, 2002. The 30 day public review period ended on November 11, 2002. Written correspondence was received from the Santa Clara County Fire Department advising that mobile home parks may become subject to Uniform Fire Code provisions, and that changes may be required within the two existing mobile home parks in the Town to meet minimum fire flow requirements. This comment does not require any modification to the environmental documents. As of the date of this report, no other comments have been received on the draft Negative Declaration (Exhibit A of Attachment 2). 2. Clarify requirements for replacing mobile homes if they are removed. The Commission recommended that a 1:1 replacement be required at the economic level of the units being eliminated if either of the Town's mobile home parks are redeveloped. If the Town Council decides that it is appropriate, a policy could be added to the Housing Element to clarify this issue. The following is suggested wording for an implementing strategy that could be inserted between H.I.3.1 and H.I.3.2 as shown on Exhibit A of Attachment 1 (subsequent implementing strategies under Issue 3 would be renumbered): PAGE 6 MAYOR AND TOWN COUNCIL SUBJECT: HOUSING ELEMENT UPDATE November 8, 2002 H.I.3.2 Mobile Home Park Conversion: If an existing mobile home park is redeveloped, a 1:1 replacement of units shall be required at the same economic level of the units being removed. Time Frame: On -going Responsible Party: Community Development Department The Commission then recommended that the Council adopt the Housing Element with the following modifications (staff response follows each item): 1. Reformat the goals, policies, and implementation strategies to fit the existing General Plan, Including updating the Introduction using Chapter 8. Exhibit A of Attachment 1 is the reformatted goals, policies, and implementation strategies to be incorporated into the General Plan update. 2. Page 20: last sentence, change "wheelchair accessible" to "ADA compliant." 3. Pages 41 and 50: confirm language regarding mixed use in residential zones and whether it fits the intent. These changes will be made by the housing consultant. 4. Page 76: consider broadening this policy to include resource conservation and to consider encouragement of builders of affordable housing to exceed Title 24 energy requirements. Implementing strategy H.I.2.2 has been revised to include wording encouraging developers to exceed Title 24 requirements. 5. Change "elderly" to "senior citizen" or other appropriate contemporary language throughout the document. This change has not been made, but staff will look at doing this during the next General Plan update. 6. Include range of rents paid in addition to median rents. The housing consultant will add the requested information to the Technical Appendix. PAGE 7 MAYOR AND TOWN COUNCIL SUBJECT: HOUSING ELEMENT UPDATE November 8, 2002 CONCLUSION: The General Plan Committee and Planning Commission recommended approval of the Housing Element update. It is recommended that the Council make the Negative Declaration and adopt the Resolution (Attachment 1) updating the Housing Element of the Town of Los Gatos General Plan by adopting General Plan Amendment GP-02-01 and repealing Resolution 1997-56. The Housing Element will not need to be resubmitted to the State. If a determination has not been made on the two remaining concerns before the Council meeting, staff and the housing consultant will continue to work with HCD to achieve certification of the Housing Element. ENVIRONMENTAL ASSESSMENT: The Housing Element update is a project as defined under CEQA. No significant environmental impacts have been identified as a result of the project, and a Mitigated Negative Declaration is recommended (Exhibit A of Attachment 2). FISCAL IMPACT: None at this time. When individual development applications or loan/grant requests are made to the Town, the fiscal impact will be analyzed..................................... Attachments: 1. Draft Resolution (two pages with nine page exhibit attached) 2. Report to the Planning Commission dated October 17, 2002, for agenda of October 23, 2002 with Exhibits A & B. 3. Planning process comparison chart (one page) 4. Map of Vasona Junction half mile radius area 5. Draft Housing Element Technical Appendix (92 pages) Distribution: Melanie Shaffer Freitas, Freitas + Freitas, 311 Laurent Street, Santa Cruz, CA 95060 RESOLUTION 2002- RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS UPDATING THE HOUSING ELEMENT OF THE LOS GATOS GENERAL PLAN BY ADOPTING GENERAL PLAN AMENDMENT GP-02-01 AND REPEALING RESOLUTION 1997-56. WHEREAS, pursuant to Government Code Section 65355, the Town Council conducted a public hearing for consideration of an update to the Housing Element of the Los Gatos General Plan on November 12, 2002; and WHEREAS, during this hearing, the Town Council considered General Plan Amendment GP-02-01 for the Housing. Element update; and WHEREAS, the Planning, Commission held a public hearing and recommended adoption of the element on October 23, 2002; and WHEREAS, the General Plan Committee recommended adoption of the element on September 25, 2002; and WHEREAS, the Town has in good faith worked with the State Department of Housing and Community' Development in addressing concerns to comply with Government Code Section 65580 et seq; and WHEREAS, it is anticipated that the State will find the Housing Element in compliance with Government Code Section 65580 et seq, and will certify the element in November 2002 following adoption of the element by the Town Council; and RESOLVED, that the Town Council adopts the Housing Element (attached hereto and marked as Exhibit A) as part of the Los Gatos General Plan (General Plan Amendment GP-02-01) and recinds Town Council Resolution 1997-56. FURTHER RESOLVED, that the Town Council finds that the amendment to the General Plan will not have a significant environmental impact and makes the Negative Declaration. FURTHER RESOLVED, that the Town Council finds that the Housing Element update is internally consistent with the various elements of the General Plan PASSED AND ADOPTED at a special meeting of the Town Council held on the 12`h day of November, 2002, by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: /s/ Randy Attaway MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: /s/ Marian V. Cosgrove CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNTA v:\DEV\RESOS\GP-02-01.wpd 7 3.0 HOUSING The Housing Element is one of seven required General Plan elements. There are specific guidelines developed by the State of California for subjects that must be included in a Housing Element. These guidelines are identified in Article 10.6 of the State of California Government Code. The 2002 Housing Element was certified by the State Department of Housing and Community Development in 2002. 3.1 INTRODUCTION The intent of the Town of Los Gatos is to provide adequate housing for Town citizens, regardless of age, income, race, or ethnic background. The Town encourages conservation and construction of housing adequate for uture populations and replacement needs, consistent with environmental limitations and in proper relationship to community facilities, open space and transportation and small-town character. The Housing Element establishes policies that will aid Town officials in daily decision -making and sets forth implementation measures that will assist the Town in realizing its housing goals. The Housing Element was developed based on the information contained in the Housing Element Technical Appendix, dated September 2002. "A decent home and suitable living environment for all" has been identified as a goal of the highest priority by the California State Legislature. Recognizing that local planning programs play a significant role in the pursuit of this statewide goal; and to assure that local planning effectively implements statewide housing policy, the Legislature has mandated that all local jurisdictions and counties include a housing element as part of their adopted General Plan. The State's General Plan law requires that the Housing Element be updated at least every five years. The following Housing Element reflects the 2001 regional housing needs determinations prepared by the Association of Bay Area Governments (ABAG) which were revised in 1995. The revised ABAG needs reflects the period from January 1, 1999 to June 30, 2006. The element establishes goals, policies and programs that provide incentives for the development of affordable housing in order for the Town to achieve its share of affordable housing. From 2001 to Spring 2002 the Town approved 283 additional housing units. During the 1999-2002 period, 72 units affordable units were built or approved. When evaluating the success of the Town's housing policies, it is important to recognize that the Town has been relatively successful in producing the Town's "fair share allocation" of low income housing even though the cost of land is approximately a million dollars per acre. The updated Housing Element was developed to be consistent with the other elements of Los Gatos' General Plan. The Town will continue to require that all residential development proposals, General Plan and Specific Plan amendments be consistent with the Town's Housing Element. The development of the Housing Element Technical Appendix involved numerous meetings of the Town's General Plan Committee over a one year period. These meetings were open to the public and the agendas were posted at Town Hall and the Public Library to encourage public participation. Los Gatos General Plan September 2002 EXHIBIT A Adequate sites for ,ousing The review process and adoption of this element included a community meeting, and public hearings of the Planning Commission and Town Council, all of which were open to the public for their input. A 45 day public review period was a advertised in the local newspaper (Los Gatos Weekly -Times) as were the community meeting and Planning Commission and Town Council public hearings. All public meeting agendas were posted. Drafts of the Housing Element Technical Appendix were available at Town Hall, the public library and on the Town's web site. - 3.2 GOALS, POLICIES, IMPLEMENTING STRATEGIES The following is a summary of the major housing issues identified for the Town of Los Gatos for the 2002-June 30, 2006 time frame. These issues are listed in order of priority with the initial issues being the most significant. ISSUE: 1 Adequate Sites for Housing. The Town needs to provide adequate sites for 125 dwelling units to meet its 2002-2006 Regional Housing Need. The 125 unit estimate includes 59 very low income units and 66 moderate income units. With opportunities to apply Mixed Use or a density bonus, there is sufficient land zoned at appropriate densities with infrastructure available to meet the projected need for very low and moderate income units. (Goal: H.G.1.1 Expand the choice of housing opportunities for all economic segments of the community through a variety of housing types and sizes, including a mixture of ownership and rental housing. Policies: H.P.1.1 Continue to designate sufficient residentially -zoned land at appropriate densities to provide adequate sites to meet Los Gatos' new construction need for 2002-2006. H.P.1.2 Maintain and/or adopt appropriate land use regulations and other development tools to encourage the development of affordable housing. Los Gatos General Plan September 2002 Page H-2 H.P.1.3 Develop and utilize all available funding resources in order to provide the maximum amount of affordable housing as feasible. Implementing Strategies: H.I.1.1 Adequate Land Inventory: The Town will ensure that there is sufficient land available at appropriate zoning categories to meet its need for very low and moderate income households. In order to achieve this, the Town will assess the progress of the development. community in providing very low income units during the latter part of 2003. If it appears that an insufficient number of very low, low and moderate income units are being produced, the Town will consider rezoning up to five acres of land within a half mile radius of the future Vasona light rail station to a higher density (refer to the target area map in the Housing Element Technical Appendix). Time Frame: Responsible Party: 2002-2006: Continue to maintain an adequate land inventory that meets 2002-2006 Regional Housing Needs goals. Late 2003: Evaluate need to rezone up to five acres of vacant or underutilized land to a higher density and/or apply affordable housing overlay zone(s). Community Development Department H.L1.2 Density Bonus: Continue to provide up to a 100% density bonus for developments that include housing for elderly, handicapped and/or very low and low-income households. Eligibility requirements are as follows: A. All housing projects on Tots in excess of 40,000 square feet must be processed as Planned Developments in order to receive a density bonus. a:--Housingrestricted to elderly, handicapped and very low and low income residents shall be eligible for a density bonus up to 100% of the units permitted by the land use designation as shown on the land use plan or any specific plan and incentives based on the State Density Bonus law. C. Town density bonuses will also be granted for residential projects that actively facilitate and encourage use of transit or directly provide transit services to residents. D. Concessions to the Town's density, traffic and parking regulations may be granted for mixed -use projects that provide residential units in non-residential zones. E. BMP (Below Market Price) units are not included when calculating density bonuses for a property. The Town will develop marketing materials that will ensure that Town staff and developers are aware of the various features of the density bonus program. Time Frame: Responsible Party: 2002-2003: Develop marketing materials 2002-June 30, 2006: Implement program Community Development Department Los Gatos General Plan September 2002 Page H-3 H.I.1.3 Development Standards: Continue to review and, where feasible, reduce development standards (e.g. parking requirements, open space requirements, etc.) for housing developments that will guarantee affordable units on a long-term basis for low and moderate -income households. Time Frame: Responsible Party: Community Development Department- 2002-June 30, 2006 H.I.1.4 Mixed Use Developments: Encourage mixed -use developments that provide affordable housing close to employment centers and/or transportation facilities. Time Frame: 2002-June 30, 2006 Responsible Party: Community Development Department H.I.1.5 Below Market Price (BMP) Program: Continue to implement the BMP Program in order to increase the number of affordable units in the community. Continue policy that BMP units are counted in addition to maximum density allowed on a site. Evaluate changing eligibility criteria to very low and low-income households. Time Frame: 2002-June 30, 2006 Responsible Party: Community Development Department H.I.1.6 Second Unit Program: Revise existing second unit program to encourage the production of more second units on residential parcels. Evaluate existing parking, square footage, transfer of credits, and other requirements to determine whether revisions would encourage the development of more second units. Time Frame: Responsible Party: 2002-2003: Evaluate and Revise Program 2002-June 30, 2006: Implement Program Community Development Department H.I.1.7 Consistency with Housing Element/Community Benefit: Continue policy that all approvals of residential developments of three or more units must include a finding that the proposed development is consistent with the Town's Housing Element, and addresses the Town's housing needs as identified in the Housing Element. Further, review of potential developments shall include a determination that affordable units provided beyond the minimum BMP requirements are to be considered as a significant community benefit. Time Frame: 2002-June 30, 2006 Responsible Party: Community Development Department Los Gatos General Plan September 2002 Page H-4 Deve[opment of a f f oraab[e housing for [ower and moderate income housebo[as Los Gatos General Plan H.I.1.8 Annual Housing Report: Prepare an annual housing report for the review of the Town Council including information on progress made towards achieving new construction need, affordable housing conserved/developed, effectiveness of existing programs and recommendations for improvement. Consult with non-profit providers, special need providers, and other community resources in preparation and evaluation of the report. Time Frame: 2002-June 30, 2006 Responsible Party: Community Development Department H.I.1.9 Redevelopment Housing Set -Aside Funds/In-Lieu Fees: Develop a strategy for use of Redevelopment Housing Set -Aside funds and In - Lieu fees from the BMP Program. Consider the needs as identified in this Housing Element (e.g. Preservation of At Risk Units, Development of Units Affordable to Very Low and Low -Income Households, etc.) in the development of funding conditions and incentives. Time Frame: Responsible Party: 2002-January 2003: Develop Funding Strategy 2002-June 30, 2006: Implement Strategy Redevelopment Agency H.I.1.10 Mortgage Credit Certificate (MCC) Program: Continue to encourage Los Gatos households to participate in MCC and other financial assistance programs (e.g. Teacher Mortgage Assistance) provided in the County of Santa Clara. Time Frame: 2002-June 30, 2006 Responsible Party: County of Santa Clara Objective: Five households total assisted from 2002-2006 ISSUE: 2 Development of Affordable Housing for Lower and Moderate Income Households. The most significant new construction need is housing for very low, low and moderate - income households. Of the 125 projected units needed, all of these units are estimated to be needed to be affordable to very low and moderate -income households. Goal: H.G.2.1 Preserve existing residential opportunities and encourage additional residential use that is compatible with neighborhood and community. Policies: H.P.2.1 Encourage the maintenance and improvement of existing housing units. H.P.2.2 When evaluating new developments, evaluate the impact of development on the Town's jobs/housing ratio. H.P.2.3 Encourage residential construction that promotes energy conservation. September 2002 Page H-5 Implementing Strategies: H.I.2.1 Housing Conservation Program: Continue to provide Housing Conservation Program assistance to property owners to improve their housing units. Undertake the following actions to increase program productivity: A. Conduct a housing condition survey in neighborhoods with older housing stock. B. If needed, redesign program goals and objectives to respond to results of housing condition survey. C. Redesign marketing materials and aggressively market program to potential applicants. Time Frame: • 2002-2003: Conduct housing condition survey 2002-June 30, 2006: Implement program Responsible Party: Community Services Department Funding Source: CDBG Funds/Redevelopment Funds Objective: . 10-20 Units Total Rehabilitated from 2002-2006 H.I.2.2 Home Access Program: Continue to support countywide programs, such as the Home Access Program, that provide assistance with minor home repairs and accessibility improvements for lower -income households. Time Frame: 2002-June 30, 2003 Responsible Party: County of Santa Clara H.I.2.3 Jobs/Housing Balance: As part of the development review process, evaluate applications that have significant number of jobs or housing in regard to the potential impact on the Town's jobs/housing ratio. The objective is to maintain the Town's 2002 ratio of 1.5 jobs per household/housing unit. However, the jobs/housing balance shall not be used as a criteria for denying projects that include affordable housing opportunities. Time Frame: Responsible Party: Objective: 2002-June 30, 2006 Community Development Department Maintain 1.5 jobs to household/housing unit ratio H.I.2.4 Energy Conservation Opportunities: Continue to enforce Title 24 requirements for energy conservation and evaluate utilizing some of the other suggestions as identified in Chapter 9 of the Housing Element technical Appendix to encourage developers to exceed Title 24 requirements. Time Frame: 2002-June 30, 2006 Responsible Party: Community Development Department H.I.2.5 Weatherization Program: Support the weatherization program administered countywide by the county of Santa Clara. This program assists the very low-income homeowners with weathe' zation improvements to their home. Time Frame: 2002-June 30, 2006 Responsible Party: Community Development Department Los Gatos General Plan September 2002 Page H-6 Preserve a f f oraahie housing stock Los Gatos General Plan ISSUE: 3 Conservation of existing housing units. The Town's existing stock of mobile homes and rental units provides an important resource for affordable housing. These units need to be preserved. Further, rehabilitation assistance needs to continue to be made available to property owners of units occupied by lower income households. The Town also needs to conduct a housing condition survey in the older areas of the community in order to determine the extent of need for rehabilitation assistance. (Goal: H.G.3.1 Preserve the existing affordable housing stock. Policy: H.P.3.1 Support preservation and conservation of existing housing units that provide affordable housing opportunities for Town residents and workers and strive to ensure that at least 30% of the housing stock are rental units. Implementing Strategies: H.I.3.1 Mobile Home Preservation: Preserve mobile homes (150 total) and adopt mobile home park conversion policies to preserve existing housing opportunities and to ensure the provision of affordable units similar to the existing park's unit capacity. Time Frame: 2002-2006: Implement policies Responsible Party: Community Development Department Objective: Preserve existing 150 mobile home units H.I.3.2 Preserve "At Risk" Affordable Housing Units: Monitor the 220 publicly assisted, multi -family housing units in the Town to ensure that they retain their affordability status. These developments include Villa Vasona, The Terraces, Open Doors, Los Gatos Four Plex, 95 Fairview Plaza and the Los Gatos Creek Village Apartments. Develop a strategy to retain affordability of units at Villa Vasona, which is scheduled to have its Section 8 assistance expire in November 2004. A notification procedure for tenants that will be developed cooperatively between the Town and the property owner shall be included in the strategy. Time Frame: 2002-June 30, 2006: Monitor Affordability Status of Developments September 2003: Complete strategy to retain affordability status of Villa Vasona Funding Sources: Redevelopment Housing Set -Aside Funds, CDBG and/or HOME Funds, other Federal and State Funding Resources Responsible Party: Community Development Department and Redevelopment Agency September 2002 Page H-7 Housing Opportunities H.I.3.3 Rental Housing Conservation Program: The Town's existing multi- family, privately owned rental units provide housing opportunities for households of varied income levels. The Town will continue to implement Section 29.20.155 of the Zoning Ordinance that addresses conversions of residential use, Specifically, Section 29.20.155(a)(2) that requires that any proposed conversion satisfy the housing goals and policies as set forth in the General Plan. Time Frame: Responsible Party: 2002-June 30, 2006: Continue Implementation of Conversion Policies Community Development Department ISSUE: 4 Preservation of "At Risk" Affordable Units. A significant issue in the 2002-2006 time frame is the expiration of Section 8 subsidies for the Villa Vasona Development. This 107-unit development provides affordable housing to elderly and disabled households. The Town needs to monitor the potential expiration in 2004 of these subsidies and, if needed, develop a strategy to preserve the affordability of the units. (Goal: H.G.4.1 Ensure that all persons have equal access to housing opportunities. Policies: H.P.4.1 Support housing programs that protect individuals' rights. H.P.4.2 Continue to provide assistance to service providers of special needs households such as seniors, disabled and homeless. Implementing Strategies: H.I.4.1 Rental Dispute Resolut 'rogram: Continue the administration of the Rental Dispute Resci....:n Program and consider revisions as necessary to make the program as effective as possible in protecting both tenants and landlords. Time Frame: 2002-2006 Funding Source: Fees Responsible Party: Community Services Department H.I.4.2 Santa Clara County Fair Housing Consortium: Support the efforts of the Santa Clara County Fair Housing Consortium, which includes the Asian Law Alliance, Mid -Peninsula Citizens for Fair Housing, Project Fair Sentinel, and the Mental Health Advocate Program. These organizations provide resources for Los Gatos residents with tenant/landlord, housing discrimination and fair housing concerns. Time Frame: 2002-2006 Responsible Party: County of Santa Clara Urban County Funds Funding Source: Santa Clara County Fair Housing Consortium Los Gatos General Plan September 2002 Page H-8 H.I.4.3 Support for Non -Profit Affordable Housing Providers: Recognize and support the efforts of non-profit affordable housing organizations that provide housing services in Los Gatos. Encourage the participation of these providers in developing housing and meeting the affordable housing needs of Los Gatos households. Non-profit groups will be invited to work cooperatively with the Town in developing strategies and actions for affordable housing Time Frame: 2002-2006 Responsible Party: Community Development Department H.I.4.4 Homeless: Increased Range of Housing Opportunities: Continue to support the County of Santa Clara's "Continuum of Care" plan to provide housing opportunities for homeless households' including emergency shelter, transitional housing and permanent affordable housing opportunities. Time Frame: 2002-2006 Responsible Party: Community Development Department H.I.4.5 Disabled: Remove constraints and encourage accessible housing in residential developments: Continue to require "universal design" features in all new residential developments. Conduct and evaluation of Town's zoning and development requirements to ensure the removal of all constraints to providing housing for people with disabilities. Time Frame: 2002-2003: Conduct Evaluation Responsible Party: Community Development Department ISSUE 5: Management of Housing Programs and Funds. In addition to implementing the identified goals, policies and programs in this element, the Town also has existing programs that need to be managed (e.g. Below Market Price Program) and a significant source of housing funds that needs to be expended. (e.g. Redevelopment Housing Set -Aside funds and In -Lieu funds). The Town needs to ensure that there is adequate staff support to manage and implement the proposed 2002-2006 housing strategy. Goal: H.G.5.1 Provide adequate management and staffing of affordable housing funds and programs. Implementing Strategy: H.I.5.1 Housing Management: Consider additional staff support for the management and planning of housing programs and funding for the Town. Time Frame: 2002-2003: Develop recommendation and plan for additional staff support for housing. Funding Source: Redevelopment Housing Set Aside Funds, Urban County funds Responsible Party: Community Development Department and Redevelopment Agency Los Gatos General Plan September 2002 Page H-9 Date: October 17, 2002 For Agenda Of: October 23, 2002 Agenda Item: 7 REPORT TO: The Planning Commission FROM: Bud N. Lortz, Director of Community Development SUBJECT: Housing Element Update General Plan Amendment GP-02-01 Negative Declaration ND-02-03 FINDINGS: Public hearing to consider a revised Housing Element of the General Plan for the Town of Los Gatos. No significant environmental impacts have been identified as a result of this project, and a Mitigated Negative Declaration is recommended. APPLICANT: Town of Los Gatos • The Planning Commission must find that the Housing Element is consistent with the other elements of the General Plan if the recommendation is for approval. ENVIRONMENTAL ASSESSMENT: It has been determined that this project is will not have a significant impact on the environment and a Negative Declaration has been prepared. EXHIBITS: A. Initial Study and Negative Declaration (28 pages total), dated October 2002 - B. California Planning and Zoning Law, Article 10.6, Section 65583, Housing Element Content C. Draft Housing Element Technical Appendix, dated September 2002 RECOMMENDATION SUMMARY: Recommendation to Town Council for adoption. A. BACKGROUND: The State Planning and Zoning Law requires the legislative body of each county or city to adopt a comprehensive long-term general plan for the physical development of that jurisdiction (Article 5, Section 65300). The General Plan has seven mandated elements, including Housing. Each local government is required to review its Housing Element as frequently as appropriate, but not less than every five years. The Planning Commission - Page 2 Housing Element Update/GP-02-01, ND-02-03. October 23, 2002 Article 10.6, Section 65583 of the Government Code requires the Housing Element to consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources and scheduled programs for housing, including rental and factory -built housing and mobile homes. The element is also required to include projected housing needs of all economic segments of the community (see Exhibit C). The current Housing Element was adopted in 1997. When the General Plan was adopted in July 2000, the 1997 Housing Element was not amended as it was scheduled to be updated in 2002. The scheduled update commenced in September 2001, and the draft Housing Element Technical Appendix was released for public review on September 4, 2002. The goals, policies and implementations from the draft will be incorporated into the General Plan (pages 71 through 80). The Technical Appendix will be kept on file as a reference document. On August 20, 2001 the Town Council authorized the Town Manager to enter into an agreement with housing consultant, Melanie Shaffer Freitas of Freitas + Freitas. Ms. Shaffer Freitas prepared the 1997 Housing Element and was successful in getting that document certified by the State. Ms. Shaffer Freitas began work in September 2001, and worked with staff and the General Plan Committee in preparing the Draft Housing Element. An administrative draft Housing Element was completed in March 2002. Staff worked with a four member Sub -Committee of the General Plan Committee in reviewing the proposed goals, policies and implementations. The Town submitted the administrative draft to the State Department of Housing and Community Development (HCD) in June 2002, and received comments on July 17, 2002. The draft was revised to address the comments from HCD and was resubmitted to the State on September 5, 2002. A response had not been received as of the date of this report. The housing consultant will be present at the meeting to make a brief presentation and to answer any questions the Commission may have. The 45 day public review period for the Draft Housing Element was advertised in the Los Gatos Weekly Times on September 4, 2002. Informative e-mail messages and a memorandum were sent to surrounding cities, school districts, housing agencies and churches. The draft document has been posted on the Town's web -site, and is available for review at the Library, Town Clerk's office, and Community Development Department. The public review period will end on October 21, 2002 at 5:00 pm. To date, no written comments have been received. The Initial Study and Recommended Negative Declaration were distributed for public review on October 10, 2002. The 30 day public review period will end on November 11, 2002. To date, no written comments have been received. B. REMARKS: The Housing Consultant prepared a table summarizing the proposed housing policies and implementing programs in the Draft Housing Element (see pages three through six of Exhibit A). The Planning Commission - Page 3 Housing Element Update/GP-02-01, ND-02-03 October 23, 2002 The three main housing issues that program strategies have been developed for are as follows: • Adequate sites for housing The Town needs to provide 132 additional housing units to meet its 2002-2006 Regional Housing Need. This number has been predetermined by the Association for Bay Area Governments (ABAG). Of the 132 units, 73 fall into the moderate income category and 59 are very low income. The conclusion of the Housing Element is that there are adequate sites to meet the projected housing need. This conclusion is based on the amount of land currently zoned for medium to high density, the opportunity to develop mixed use projects and the possibility for density bonuses when a project includes affordable housing. The Town Council held an affordable housing study session on September 16, 2002. The Council discussed an implementation program to evaluate the need to rezone up to five acres to high density. The Council consensus was that theimplementing strategy should state that the Town will evaluate the need to rezone five 'acres to a higher density, but that the density range should not be specified. This will allow for more flexibility, a thorough evaluation to be done, and for public input at such time that a specific parcel of land is proposed to be rezoned. • Development of affordable housing for lower and moderate income households The most significant new housing need is for very low, low and moderate income households. As previously mentioned, all of the 132 projected units are estimated to be needed to be affordable for very low and moderate income households. At the September 16, 2002 Council study session, a number of vacant or underutilized sites were mentioned as possible locations for an affordable housing project. Funds from the Redevelopment Agency Housing Set Aside and from the BMP In -Lieu Fees are available to use for a future affordable housing project. • Conservation of existing housing units The Town's existing stock of mobile homes and rental units provides an important resource for affordable housing. It is a goal of the Town to preserve these units. Rehabilitation assistance needs to continue to be available to property owners with units occupied by lower income residents. The Town also needs to conduct a housing condition survey to determine the extent of the need for rehabilitation assistance. To address the three main housing issues, a strategy has been developed that includes goals, policies and implementation programs. The policies and programs are organized under the following goals: • Expand the choice of housing opportunities for all economic segments of the community through a variety of housing types and sizes, including a mixture of ownership and rental units. The Planning Commission - Page 4 Housing Element Update/GP-02-01, ND-02-03 October 23, 2002 The Town will continue to designate sufficient residentially zoned land at appropriate densities to meet the new construction need for 2002-2006. The consideration of rezoning up to five acres of land to a higher density falls under this goal, as does the density bonus and encouragement of mixed use projects. Continuation of, and review of, the Below Market Price (BMP) program and secondary dwelling units provisions are also under this goal. • Preserve existing residential opportunities and encourage additional residential use that is compatible with neighborhood and community. Provision of housing conservation assistance to help property owners improve their housing units, support of County -wide housing assistance programs, and evaluation of the jobs/housing balance fall under this goal. • Preserve the existing affordable housing stock. The existing housing stock needs to continue to be protected. Maintenance of the Town's two mobile home parks, and preservation of current affordable housing units are key elements of this goal. A strategy will be developed to retain "at risk" units such as those at Villa Vasona. • Ensure that all persons have equal access to housing opportunities. This goal includes implementations for continued administration of the Rental Dispute Resolution Program, support of non-profit affordable housing organizations, and support of agencies that assist the homeless and accessible housing. • Provide adequate management and staffing of affordable housing finds and programs. The objective is to maintain, and add as needed, staff support for the management and planning of housing programs and funding. The Planning Commission should discuss the goals, policies and implementations (pages 70-80 of Exhibit C), and provide a recommendation to the Town Council on whether they should be adopted as proposed, or if changes should be made to any language. A special Town Council meeting has been scheduled for November 12, 2002 for consideration of the Draft Housing Element. The Planning Commission - Page 5 Housing Element Update/GP-02-01, ND-02-03 October 23, 2002 C. RECOMMENDATION: It is recommended that the Planning Commission take the following actions: 1. Find that the Housing Element is consistent with the other elements of the General Plan; 2. Forward the draft Housing Element Technical Appendix to the Town Council with a recommendation that the Council: a. make the Negative Declaration; b. approve the General Plan Amendment; and c. adopt the Housing Element, directing staff to reformat the goals, policies and implementing strategies to fit the existing General Plan. ud N. Lortz, Director of Community Development Prepared by: Suzanne Davis, Associate Planner BNL:SD:cb cc: Melanie Shaffer Freitas, Freitas + Freitas, 311 Laurent Street, Santa Cruz, CA 95060 Regina Falkner, Community Services Director N 1DE V\SUZANNEPOREPORTSW ousine Elemen[. wpd Initial Study Town of Los Gatos Housing Element Update Prepared for Town of Los Gatos Community Development Department 110 E. Main Street Los Gatos, CA 95031 October 2002 Prepared by Geier & Geier Consulting, Inc. P.O. Box 5054 Berkeley, CA 94705-5054 510/6'I'i-2535 Exhibit A • -fr.:, ``,•Z • u Town of Los Gatos Community Development Department Environmental Checklist Form 1. Project Title: Town of Los Gatos Housing Element Update 2. Lead Agency Name and Address: Town of Los Gatos Community Development Department 110 East Main Street Los Gatos, CA 95031 3. Contact Person and Phone Number: Tom Williams, 408/354-6808 4. Project Location: Town of Los Gatos 5. Property Owner: Town of Los Gatos Community Development Department 110 East Main Street Los Gatos, CA 95031 6. General Plan Designation: Not Applicable 7. Zoning: Not Applicable 8. Description of Project: The updated Housing Element identifies issues, policies, and implementation measures, which were developed based on the information contained in the Housing Element Technical Appendix. The Technical Appendix was prepared pursuant to Article 10.6 of the Government Code, the State Housing Element Law, and addresses issues noted in Article 10.6 (e.g., evaluation of existing and projected housing needs, review of previous -goals and programs, inventory of sites, identification of housing constraints, development of housing programs to address needs, and quantifiable objectives for attainment of new construction, etc.). The Technical Appendix also includes information not required by Article 10.6 but important in the evaluation of housing needs. This Initial Study assesses the environmental impacts of the goals, policies and implementation programs of the Housing Element Technical Appendix, which are also included in the updated Housing Element. Major housing issues identified for the Town over the 2002-2006 time frame are listed as follows (in order of significance): • Adequate Sites for Housing; • Development of Affordable Housing for Lower and Moderate Income Households; • Conservation of Existing Units; • Preservation of "At Risk" Affordable Units; and • Management of Housing Programs and Funds. The overall goals of the updated Housing Element are to: • Expand the choice of housing opportunities for all economic segments of the community through a variety of housing types and sizes, including a mixture of ownership and rental housing; October. 2002 1 Initial Study — Housing Element Update • Preserve existing residential opportunities and encourage additional residential use that is compatible with neighborhood and community; • Preserve the existing affordable housing stock; • Ensure that all persons have equal access to housing opportunities; and • Provide adequate management and staffing of affordable housing funds and programs. W . The updated Housing Element contains quantifiable housing goals as well as policies and implementation programs that would achieve these goals. Quantifiable housing goals of the updated Element are: (1) development of up to 125 new housing units; (2) rehabilitation of ten to 20 housing units between 2002 and 2006; and (3) preservation of existing affordable units, including 150 mobile homes and 220 "at risk" units. Since policies and implementation programs of this Element are intended to achieve these goals, some of these policies and programs would facilitate new residential development; physical changes to the environment could be associated with this new development. Table 1 lists the updated Element's policies and implementation programs, and identifies those that could result in physical changes to the environment due to new development. This Initial Study assesses the potential impacts that could result from the development of 125 new residential units in the Town. Table 1 identifies three policies and six implementation programs that would facilitate development of new residential units. As indicated in Table 1, Policies lA and 1B, and Programs1 through 4 would facilitate new developments of 125 total units, consisting of 59 units affordable to very low-income households and 66 units affordable to moderate income households. Policy 1B and Programs 5 and 6 could result in ten to 15 Below Market Price (BMP) units as well as ten second units in the Town. Policy 1C and Program 10 would provide assistance in the purchase of five newly developed housing units, consequently inducing incentives for the development of these units as part of the Town's potential housing supply. 9. Surrounding Land Uses and Setting: The Los Gatos General Plan 2000 Land Use Map (Figure 2.1 of the General Plan) indicates the general distribution of land uses throughout the Town. The predominant land use in the Town of Los Gatos is residential with low density residential (single- family homes) being the predominant type of housing. Medium density residential uses primarily occur in the downtown area and areas to the north generally between Los Gatos Boulevard and Santa Cruz Avenue/Winchester Boulevard. The Land Use Plan identifies small pockets of medium density housing along the northern Town boundary in the Pollard Road and Los Gatos -Almaden Road vicinities. The Land Use Map specifically designates four areas for high density residential: (1) an area in the downtown between University Avenue and the State Route 17 freeway (south of Blossom Hill Road) where apartment units currently exist; (2) The Terraces, a senior housing development located on the corner of Blossom Hill Road and Cherry Blossom Lane; (3) The Forbes Mill Condominiums, located between East Main Street and Highway 17; and (4) The El Gatos Penthouse complex, located at the corner of East Main Street and College Avenue. In addition, multiple -family residential is allowed in all "commercial" land use designations. standing alone or as part of mixed -use development. with a conditional use permit. 10. Other agencies whose approval is required (e.g.. permits, financing approval, or participation agreements): State of California, Department of Housing and Community Development. October, 2002 2 Proposed Housing Element Policies and Implementation Programs O oE o - c= C 'd cp o c T i > O '0 'o L as 03 4•. ca moderate income households. c a. FC Fc" 8 Ucl 'Ca.) N w C >+ c>a) L •>, •-CC•c 0 O .E C .0 to c- a cE at C. CL .E cn 0p0,E C -m acG s n2 .4 C2Ci C . C a U cc o c Po y c U~U`2. ano� °�a o1/1 CLI AQ5 E. bR-0 • Ec C y c O© V. CZ yOC3 clw0 4. p O C O> 'O 4D O CC +r a.) N a) C a) c oCG 0 NN w C a) E E a) > .-p E o> ,o >ti,o^O I) U� 0 -13O U `. p Qo aZn r Ay .c >_ L C it c J .n es c T L4. to - EyENO'ooScc 'O > .0 CG0.ta) O C O 3O N at ) i'i-y O C �0. n C ) .0 :c" U G bq cL'o 0"0 >, 6. 0 46,CiG LE �"O vUa) O C O Q40 gOpL r Liy C S- 0.C p �+ �tr p et a) 051% 3CC J� LF+ _ o n Pc'n L o� 1.). 7 a) Ec c aE o GC c.)wcU �04ri0C .cch�=�TiWa ctriU o,oca 4�0 L aG) _ n T a)E„i i -0 0-)n ) .E E to 0 c0 C for 2002-2006 M October, 2002 Table 1 (Continued) Proposed Ilousing Element Policies and Implementation Programs Potential Physical Changes Implementation Program c E• Proposed Housing Element Policies and Implementation Programs Potential Physical Changes Implementation Program October, 2002 Table 1 (Continued) Proposed Housing Element Policies and Implementation Programs Potential Physical Changes Implementation Program N � CES O C tel C • it E E U L • o E �+ •0 Q C ce • "C U G C ▪ o E— 3 a) ar 2 cs333 C o 0. U o C° y ..U. A .• 0 a) a. c E .E r " • V O E o. -0 O E— • 3 0 )ort for Non 0 464 aid 0 c� E 0 ▪ C a✓ 413: Continue to provide assistance to and homeless. Initial Study - Housing Element Update October, 2002 u Bud N. Lortz, Di ctor ofSommunity Development Initial Study - Housing Element Update Environmental Factors Potentially Affected: Proposed policies and programs of the updated Housing Element would not directly result in any • potentially significant impacts on the environment. Specific development proposals that are facilitated by these policies and programs would have the potential to affect the environment, but the potential for impacts would vary on a project -by -project basis. Each development project would be- subject to separate environmental review at the time a specific development proposal is made and project -specific impacts would be evaluated at that time. Determination: (to be Completed by the. Lead. Agency) .................. Onthe basis of this initial evaluation: X I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because revisions in the project have been made by or agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be prepared. I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. I find that the proposed project MAY have a "potentially significant impact" or "potentially significant unless mitigated" impact on the environment, but at least one effect 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets. An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. I find that although the proposed project could have a significant effect on the environment, because all potentially significant effects (a) have been analyzed adequately in an earlier EIR or NEGATIVE DECLARATION pursuant to applicable standards, and (b) have been avoided or mitigated pursuant to that earlier EIR or NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the proposed project, nothing. further is required. I0/10i02 Date ` 1 October. 2002 7 Initial Study — Housing Element Update Issues (and Supporting Information Sources) Evaluation of Environmental Impacts Issues: Potentially Significant Potentially Impact Unless Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact I. Aesthetics - Would the project: a) Have a substantial adverse effect on a scenic vista? X b) Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway?_. X c) Substantially degrade the existing visual character or quality of the site and its surroundings? X d) Create a new source of substantial light or glare which would adversely affect day or nighttime views in the area? X Based on the goals of the updated Housing Element, it is anticipated that 125 housing units would be developed. Potential aesthetic impacts associated with construction of these units would vary on a ' project -by -project basis. Each development project would be subject to separate environmental review at the time a specific development proposal is made and project -specific aesthetics impacts would be evaluated at that time. • H. Agriculture Resources — Would the project: a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non-agricultural use? X b) Conflict with existing zoning for agricultural use, or a Williamson Act contract? X c) Involve other changes in the existing environment which, due to their location or nature, could result in conversion of Farmland, to non-agricultural use? X The updated Housing Element proposes residential uses consistent with the residential land use designations of the Town's General Plan, and appropriate zoning to implement the policies and programs of the Element. While the Housing Element's provisions do not conflict with agriculture use zoning or Williamson Act contracts, and do not specify the conversion of any farmlands to non- agricultural uses, the effects of constructing 125 new housing units would vary on a project -by - project basis. Each development project would be subject to separate environment review at the time a specific development proposal is made, and project -specific constraints would be evaluated at that time. October, 2002 8 Initial Study — Housing Element Update Issues (and Supporting Information Sources) Potentially Significant Potentially Impact Unless Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact III. Air Quality - Would the project-- ' . • a) Conflict with or obstruct implementation of the applicable air quality plan? X b) Violate any air quality standard or contribute substantially to an existing or projected air quality violation? X c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non - attainment under an applicable federal or state ambient air quality standard (including releasing emissions, which exceed quantitative thresholds for ozone precursors)? X d) Expose sensitive receptors to substantial pollutant concentrations? X e) Create objectionable odors affecting a substantial number of people? X Based on goals of the updated Housing Element, it is anticipated that 125 housing units would be developed. Traffic generated by future developments containing these new units would cumulatively degrade regional air quality. However, the increase in air emissions associated only with these new units would not be considered significant based on the Bay Area Air Quality Management District's (BAAQMD) threshold levels for potential significance.' The BAAQIVID threshold level for potential significance is 320 single-family residential units. At or above this number of units, traffic generated by future projects could cumulatively produce air quality problems. and an air quality impact assessment would need to be prepared andsubmittedto the BAAQMD forreview.. There would be potential for local construction -related or operational air quality impacts due to specific development projects. Each development project that would include some of these units would be subject to separate environmental review at the time a specific development proposal is made, and the potential for project -specific air quality impacts would be evaluated at that time. IV. Biological Resources - Would the project: a) Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans. policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? X b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? X c) Have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, marsh. vernal pool, coastal, etc.) through direct removal. filling, hydrological interruption, or other means? X October, 2002 9 Initial Study — Housing Element Update Issues (and Supporting Information Sources) Potentially Significant Potentially Impact Unless Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact d) Interfere substantially with the movement of any.native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? X e) Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance? X f) Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan? X Potential biological impacts associated with construction of 125 new housing units would vary on a project -by -project basis. Each development project would be subject to separate environment review at the time a specific development proposal is made, and project -specific biological constraints (e.g., presence of rare/endangered species, locally designated species 6r habitats) would be evaluated at that time. In addition, the Town's Parks Division of the Parks and Public Works Department would provide detailed direction and guidance in the mitigation of potential impacts on biological resources. V. Cultural Resources - Would the project: a) Cause a substantial adverse change in the significance of a historical resource as defined in 15064.5? X b) Cause a substantial adverse change in the significance of an archaeological resource pursuant to 15064.5? X c) Directly or indirectly destroy a unique. paleontological resource or site or unique geologic feature? X d) Disturb any human remains, including those interred outside of formal cemeteries? X The goals of the updated Housing Element, would promote the development of 125 new housing units. Potential impacts on cultural resources that would be associated with construction of these new units would vary on a project -by -project basis. Each development project would be subject to separate environment review at the time a specific development proposal is made, and project -specific cultural resources impacts would be evaluated at that time. VI. Geology and Soils - Would the project expose people or structures to potential substantial adverse effects, including the risk of loss, injury. or death involving: a) Rupture of a known earthquake fault. as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. X October, 2002 10 U V Initial Study — Housing Element Update Issues (and Supporting Information Sources) Potentially Significant Potentially Impact Unless Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact b) gong seismic ground shaking7 "— - `"'"""°`�'�" - -X L c) Seismic -related ground failure, including liquefaction? X d) Landslides? X e) Result in substantial soil erosion or the loss of topsoil? X f) Be located on a geologic unit or soil that is unstable, or that -would become unstable as a result of the project, and potentially result in on- or off -site landslide, lateral spreading, subsidence, liquefaction or collapse? X g) Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (1994), creating substantial risks to life or property? X h) Have soils incapable of adequately supporting the use of septic tanks or alternative waste water disposal systems where sewers are not available for the disposal of waste water? X The updated Housing Element would have no direct effects on geological and soils resources. However, the potential geologic impacts associated with construction of 125 new housing units would vary on a project -by -project basis. Each development project would be subject to separate environment review at the time a specific development proposal is made, and project -specific geologic constraints (e.g., potential for fault rupture, ground shaking, ground failure, subsidence, expansive soils, etc.) would be evaluated at that time. VII. Hazards and Hazardous Materials - Would the project: — ---_____ . - ---- _ a) Create a significant hazard to the public or the environment through the routine transport, use, or disposal of hazardous materials? X b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? X c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one -quarter mile of an existing or proposed school? X d) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a result. would it create a significant hazard to the public or the environment? X e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? X October. 2002 11 Initial Study — Housing Element Update Issues (and Supporting Information Sources) Potentially Significant Potentially Impact Unless Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact f) For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or working in the project area? _ ______ �__ X g) Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? X h) Expose people or structures to a significant risk of loss, injury or death involving wildland fires, including where wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? - X Based on goals of the updated Housing Element, it is anticipated that 125 housing units would be developed. Potential public health risks associated with construction of these new units would vary on a project -by -project basis. Each development project would be subject to separate environment review at the time a specific development proposal is made, and project -specific health hazards would be evaluated at that time. VIII. Hydrology and Water Quality - Would the project: a) Violate any water quality standards or waste discharge requirements? X b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of pre-existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? X c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in substantial erosion or siltation on- or off -site? X d) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner, which would result in flooding on- or off -site? X e) Create or contribute runoff water which would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff? X f) Otherwise substantially degrade water quality? X g) Place housing within a 100-year flood hazard area as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard delineation map? X October. 2002 12 U U Initial Study — Housing Element .Update Issues (and Supporting Information Sources) Potentially Significant Potentially Impact Unless Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact h) Place within a 100-year flood hazar I area structures, which would impede or redirect flood flows? _ X i) Expose people or structures to a significant risk of loss, injury or death involving flooding, including flooding as a result of the failure of a levee or dam? ..... _..... , X j) Inundation by seiche, tsunami, or mudflow? X While the updated Housing Element, would have no direct impacts on hydrological resources or water quality, the 125 new housing units that would be developed as a result of the Element's implementation would have potential hydrologic impacts associated with the construction of these new units, and varying on a project -by -project basis. Each development project would be subject to separate environment review at the time a specific development proposal is made, and project -specific hydrologic impacts (e.g., changes in drainage patterns, increased surface runoff, flood hazards, water quality degradation, etc.) would be evaluated at that time. LX. Land Use and Planning - Would the project: . . a) Physically divide an established community? X b) Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to the general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? X c) Conflict with any applicable habitat conservation plan or natural community conservation plan? X General Plan. For residential uses, the General Plan Land Use Element establishes four density ranges including "High Density Residential." The "High Density" designation allows for multi -family residential at density range of 12-20 dwellings per net acre, with its objective to provide "quality housing in close proximity to transit or a business area." Policies and programs of the updated Housing Element are consistent with this density range. Proposed Policy 1B of the updated Housing Element encourages higher density affordable housing. In addition, Program 2 of the updated Housing Element proposes continued provision of a density bonus of up to 100 percent for developments that include housing for elderly, handicapped, and/or very low and low-income households. High density residential is also encouraged in the "Mixed Use Commercial" designation under Program 4 of the updated Housing Element. Multi -family residential is allowed in all commercial zones and the "Commercial -Industrial" zone, subject to a conditional use permit. The Land Use Element also includes a "Mobile Home Park" designation (density range 5-12 dwellings per net acre) to encourage the preservation of the existing mobile home parks as a source of affordable housing. Proposed Policy 3A of the updated Housing Element "supports the preservation and conservation of existing housing units that provide affordable housing opportunities for Town residents and workers and strive to ensure that at least 30%of the housing stock are rental units." This proposed policy and the corresponding Program 16 (Mobile Home Preservation) would be consistent with the objectives of the Land Use Element's designation. October, 2002 13 Initial Study — Housing Element Update . Potentially Significant Potentially Impact Unless Less Than Significant Mitigation Significant No Issues (and Supporting Information Sources) Impact Incorporated Impact Impact The Land Use Element contains a Land Use Plan that reflects_existing andrecommended potential.._._ land uses for the Town. In general, medium density residential uses are designated primarily in the downtown area and areas to the north between Los Gatos Boulevard and Santa Cruz Avenue/Winchester Boulevard. The Land Use Plan identifies small pockets of medium density housing along the northern Town boundary in the Pollard Road and Los Gatos -Almaden Road vicinities. Based on the Land Use Plan and location of vacant or redevelopable land, opportunities for developing affordable housing through implementation of updated Housing Element policies would primarily be in the downtown area and Route 85 vicinity. Land uses in the Route 85 area are subject to policies specified in the Vasona Light Rail & Route 85 Element (Section 5 of the General Plan); the consistency of the policies in this specific plan with proposed polices of the updated Housing Element is discussed below. The Vasona Light Rail & Route 85 Element identifies two areas where affordable housing development would be encouraged: (1) for Area 1 (Vasona Junction), Policy V.P.5.2 states that "Development in this area shall consist of housing that meets the affordable housing goals of the Town..."; and (2) Area 4 (East Los Gatos Boulevard),_which.includes Policy V.P.8.2, "encourage development of residential rental units." Implementing Strategy V.I.8.2 specifies a rentallaffordability preference: "Evaluate proposals with residential uses to assure that the Town's housing goals are being furthered." In addition, the Town Council adopted Resolution 1991-124 in 1991 on a site located in Area 3.3 (Central Core), which specified an increase in density from 5-12 units per acre to 10-20 units per acre. Although a General Plan amendment would be required, this resolution does indicate a potential for increasing densities to provide affordable housing. Proposed policies of the updated Housing Element are consistent with these policies. Policies of both Elements encourage affordable residential development and mixed use projects with residential uses. Other Land Use Issues. As indicated in Table 1, Policies lA and 1B supported by Implementation Programs 1 through 4, would facilitate new developments consisting of very low and moderate income housing. Policy 1B would assist the Town in the provision of BMP and second units. Implementation Programs 5 and 6 promote the development of ten to 15 BMP units and ten second units, respectively. Policy 1C and Implementation Program 10 (Participation in Mortgage Credit Certificate program) would assist in the purchase of five newly developed housing units. Specific projects that are facilitated by these policies and programs would be subject to separate environmental review and project -specific land use impacts (e.g. potential land use compatibility impacts, impacts on agricultural resources, and disruption of established communities) would be evaluated at that time. X. Mineral Resources - Would the project: a) Result in the loss of availability of a known mineral resource that would be of value to the region and the residents of the state? X b) Result in the loss of availability of a locally -important mineral resource recovery site delineated on a local general plan, specific plan or other land use plan? X The Los Gatos General Plan does not identify any regionally or locally -important mineral resources in the Town that could be affected by future residential development. October. 2002 14 C_3 U Initial Study — Housing Element Update Issues (and Supporting Information Sources) Potentially Significant Potentially Impact Unless Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact XI. Noise - Would the project result in: a) Exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies? X b) Exposure of persons to or generation of excessive groundborne vibration or groundbome noise levels? X c) A substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the project? X d) A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing without the project? X e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels? X f) For a project within the vicinity of a private airstrip, would the project expose people residing or working in the project area to excessive noise levels? X Based on goals of the updated Housing Element, -it- is --anticipated that •,125-housing units -would-be developed. Potential noise impacts associated with construction and occupation of these new units would vary on a project -by -project basis. Each development project would be subject to separate environment review at the time a specific development proposal is made, and project -specific noise impacts or constraints would be evaluated at that time. XII. Population and Housing — Would the project: a) Induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other infrastructure)? X b) Displace substantial numbers of existing housing, necessitating the construction of replacement housing elsewhere? X c) Displace substantial numbers of people, necessitating the construction of replacement housing elsewhere? X Quantifiable housing goals of the updated Housing Element for the four-year period between 2002 and 2006 are: (1) development of up to 125 new housing units; (2) construction of ten to 15 BMP units; and (3) development of ten second units on existing parcels in the Town. The additional 125 housing units could add approximately 318 persons to the Town's current population of 28,592 as indicated in the 2000 census. This increase would represent one percent of the Town's 2005 October. 2002 15 Initial Study — Housing Element Update Issues (and Supporting Information Sources) Potentially Significant Potentially Impact Unless Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact population as projected by the Association of Bay Area. Governments (ABAG), and this one percent _. increase in population would be within ABAG's projected three percent growth rate over the next five years. Therefore, Plan implementation would not represent a significant increase in local or regional population. The project's population increase of 318 persons would represent 0.02 percent of Santa Clara County's 2000 total population of approximately 1.8 million. Implementation of the updated Housing Element is not expected to induce substantial growth within the Town. The project's estimated increase of 318 persons, when averaged over the four-year planning period, would represent a 0.3 percent increase per year. Since 1980, the Town's population has been increasing at a rate of 0.3 percent annually, and the incremental growth rate associated with. the updated Housing Element could be accommodated within the existing growth rate. For comparison purposes, Santa Clara County's population growth rate was 50 percent between 1980 and 2000, averaging 2.5 percent annually. It is unknown whether any existing affordable housing would be lost, but the purpose of the updated Housing Element is to provide new housing units, rehabilitate existing housing units, and preserve existing affordable housing units. Policies 2A and 3A of the updated Housing Element help to maintain the existing number of affordable units through preservation, rehabilitation, or replacement (refer to Table 1 for specific policies). XIII. Public Services - a) Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the . construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services: Fire protection? X Police protection? X Schools? X Parks? X Other public facilities? X As indicated in Table 1, Policies lA and 1B, and Programs 1 through 4 would facilitate new developments of 125 total units, consisting of 59 units affordable to very low-income households and 66 units affordable to moderate income households. Policy 1B and Programs 5 and 6 could result in development of ten to 15 BMP units as well as ten second units in the Town. Policy 1C and Program 10 would provide assistance in the purchase of five newly developed housing units, inducing the development of these units as part of the Town's potential housing supply. Development of these new units would increase demand for public services. However, as indicated by the Town's General Plan, "Los Gatos is a mature, predominantly built -out community." (page L-1) Appropriate levels of public services are available throughout the community. Most of the new October, 2002 16 o u Initial Study — Housing Element Update Issues (and Supporting Information Sources) Potentially Significant Potentially Impact Unless Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact development is expected to be infill or redevelopment, occurring -in areas that are already developed, or adjacent to urbanized areas. Therefore, these -units would not significantly -increase demand for police, fire, or maintenance services. Each development project that would include some of these units would be subject to review by the Santa Clara County Fire Department, and Fire Department requirements would be identified at that time. The school districts charge a school impact fee to mitigate increased demand for schools resulfing from "all new residential development. Additionally, the Safety Element of the Town's General Plan identifies goals, policies, and implementing strategies to ameliorate natural and urban safety hazards, and to ensure appropriate public services levels for the community. The Open Space Element provides for improvement measures for public parks and associated facilities. XIV. Recreation - a) Would the project increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated?• - X b) Does the project include recreational facilities or require the construction or expansion of recreational facilities, which might have an adverse physical effect on the environment? X Based on goals of the updated Housing Element, it is anticipated that 125 housing units would be developed. Development of these new units would incrementally increase demand for recreational facilities. However, most of this new development would be infill, occurring in areas that are already developed, or adjacent to urbanized areas. In addition, as mentioned in Section XII, Population and Housing, project -related increases in population would represent approximately 0.3 percent per year increase in population over the 2002 — 2006 planning period of the updated Housing; this small population increase would not significantly increase existing or expected future demand on recreational facilities. XV. Transportation and Traffic - Would the project: a) Cause an increase in traffic, which is substantial in relation to the existing traffic load and capacity of the street system (i.e.. result in a substantial increase in either the number of vehicle trips, the volume to capacity ratio on roads, or congestion at intersections)? X b) Exceed, either individually or cumulatively, a level of service standard established by the county congestion management agency for designated roads or highways? X c) Result in a change in air traffic patterns, including either an increase in traffic levels or a change in location that results in substantial safety risks? X d) Substantially increase hazards due to a design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g.. farm equipment)? X October, 2002 17 Initial Study — Housing Element Update Issues (and Supporting Information Sources) Potentially Significant Potentially Impact Unless Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact e) Result in inadequate emergency access? - -- -"" — t) Result in inadequate parking capacity? x g) Conflict with adopted policies, plans, or programs supporting alternative transportation (e.g., bus turnouts, bicycle racks)? X The goals of the updated Housing Element, would be expected to generate 125 new housing units from 2002 through 2006. Depending on the size of the residential units, this number of units could generate 750 to 1,000 trips per day. Assuming future development proposals associated with the 125 additional housing units would be consistent with the existing General Plan land use designations, no significant cumulative traffic impacts associated with these housing units would be anticipated. The EIR for the General Plan 2000 indicated that implementation of the General Plan would not result in a decrease in capacity at any mid -block roadway segment or at any signalized intersections that would result in a change in level of service.' However, local traffic impacts could result from such traffic increases, depending on the locations of new units. The nature and extent of local traffic impacts would vary on a project -by -project basis. These units would be subject to separate environment review at the time a specific development proposal is made, and project -specific traffic impacts (e.g., level of service operation, access problems, traffic or pedestrian safety hazards, etc.) would be evaluated at that time. XVI. Utilities and Service Systems — Would the project: a) Exceed wastewater treatment requirements of the applicable Regional Water Quality Control Board? X b) Require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? X c) Require or result in the construction of new storm water drainage facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? X d) Have sufficient water supplies available to serve the project from existing entitlements and resources, or are new or expanded entitlements needed? X e) Result in a determination by the wastewater treatment provider, which serves or may serve the project that it has adequate capacity to serve the projects projected demand in addition to the providers existing commitments? X f) Be served by a landfill with sufficient permitted capacity to accommodate the projects solid waste disposal needs? X g) Comply with federal, state, and local statutes and regulations related to solid waste? X October, 2002 18 U Initial Study — Housing Element Update Issues (and Supporting Information Sources) Potentially Significant Potentially Impact Unless Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact As described in Section XIII, the updated Housing Element would facilitate the development of new affordable housing units as well as BMP and second units in the Town. Development of these new units would increase the demands on existing utilities and services systems. However, most of this new development would be infill or redevelopment, occurring in areas that are already developed, or adjacent to urbanized areas. At this time, there. are_no..maj.or infrastructure or delivery issues in Los Gatos.' However, there are certain areas in Town where water and/or sewer systems are old and require replacement or upgrade. New developments could be required to upgrade old water and sewer lines as part of the proposed development. The extent of repairs or improvements would depend on the size and location of the new residential units. Each development project would be subject to separate review by the Town and any required upgrading of local infrastructure would be identified by the Town at that time. The updated Housing Element indicates that the San Jose Water Company services 95 percent of the Town. Some areas of the Town, e.g. downtown and areas on the east side of Town, are served by a relatively old water delivery system, with pipes that need to be replaced. The Town and the San Jose Water Company are aware of these conditions and the Water Company is developing plans to improve those lines. Similarly, the sanitary sewer storm drain systems includes facilities that are old and in need of replacement. The West Valley Sanitation District and the Town, respectively, are responsible for replacing and upgrading these facilities. With regard to the adequacy of regional water supply/treatment and wastewater treatment capacities to accommodate future project -related growth, the new affordable units would result in a population increase of about one percent of the population projected for Los Gatos by 2020. This small population increase would not significantly increase future demands on these regional facilities. Population increases resulting from the development proposals of the Housing Element would remain within the build -out projections of the 2000 General Plan. XVII. Mandatory Findings of Significance - a) Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory? X b) Does the project have impacts that are individually limited, but cumulatively considerable? ("Cumulatively considerable" means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects. and the effects of probable future projects)? X c) Does the project have environmental effects which will cause substantial adverse effects on human beings, either directly or indirectly? X October, 2002 19 Initial Study — Housing Element Update Issues (and Supporting Information Sources) Potentially Significant Potentially Impact Unless Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact Proposed policies and programs of the updated Housing Element would not directly degrade the quality of the environment, achieve short-term goals to the disadvantage of long-term productivity, or significantly affect human beings. Such effects would be project -specific, varying on a project -by - project basis. Each development project would be subject to separate environmental review at the time a specific development proposal is made and project -specific impacts would be evaluated at that time. However, most of this new development would be infill, occurring in areas that are already developed, or adjacent to urbanized areas. Such locations.would be expected to help minimize the potential for impacts on environmental resources. This report addresses the potential cumulative impacts that could result from development of these 125 new units throughout the Town of Los Gatos. Since these units would be developed under many separate development projects as part of future residential and commercial proposals, the incremental impacts associated with each development proposal will be evaluated under each development's separate environmental review. October, 2002 20 Initial Study — Housing Element Update LIST OF SUPPORTING INFORMATION SOURCES (Indicated as endnotes under specific issues of Initial Study) 1 Bay Area Air Quality Management District, 1999. BAAQMD CEQA Guidelines. December. 2 Robert Bein, William Frost & Associates, 2000. General Plan 2000, Los Gatos, CA, Draft Environmental Impact Report. April 14. 3 Town of Los Gatos, 2002. Town of Los Gatos Housing Element Technical Appendix, 2002-2006. September. October, 2002 21 .4 • u Lead Agency: NOTICE Town of Los Gatos Environmental Impact Review RecommendeaNative Dec aration: _.__ Town of Los Gatos Community Development Department 110 East Main Street Los Gatos, CA 95031 Project Title and Location: Housing Element Update Town of Los Gatos Project Description: The updated Housing Element identifies issues, policies, and implementation measures, which were developed based on the information contained in the Housing Element Technical Appendix. The Technical Appendix was prepared pursuant to Article 10.6 of the Government Code, the State Housing Element Law, and addresses issues noted in Article 10.6 (e.g., evaluation of existing and projected housing needs, review of previous goals and programs, inventory of sites, identification of housing constraints, development of housing programs to address needs, and quantifiable objectives for attainment of new .construction,. etc.).. The _Technical.. Appendix _. also .. includes information not required by Article 10.6 but important in the evaluation of housing needs. This Initial Study assesses the environmental impacts of the goals, policies and implementation programs of the Housing Element Technical Appendix, which are also included in the updated Housing Element. Major housing issues identified for the Town over the 2002-2006 time frame are listed as follows (in order of significance): • Adequate Sites for Housing; • Development of Affordable Housing for Lower and Moderate Income Households; • Conservation of Existing Units; • Preservation of "At Risk" Affordable Units; and • Management of Housing Programs and Funds. The overall goals of the updated Housing Element are to: • Expand the choice of housing opportunities for all economic segments of the community through a variety of housing types and sizes, including a mixture of ownership and rental housing; • Preserve existing residential opportunities and encourage additional residential use that is compatible with neighborhood and community; • Preserve the existing affordable housing stock; • Ensure that all persons have equal access to housing opportunities; and • Provide adequate management and staffing of affordable housing funds and programs. The updated Housing Element contains quantifiable housing goals as well as policies and implementation programs that would achieve these goals. Quantifiable housing goals of the updated Element are: (1) development of up to 125 new housing units; (2) rehabilitation of ten to 20 housing units between 2002 and 2006; and (3) preservation of existing affordable units, including 150 mobile homes and 220 "at risk" units. Since policies and implementation programs of this Element are October, 2002 1 Negative Declaration — Housing Element Update intended to achieve these goals, some of these policies, and. programs wouldfacilitate_ new residentiaL.:_ development; physical changes to the environment could be associated with this new development. Table 1 of the Initial Study lists the updated Element's policies and implementation programs, and identifies those that could result in physical changes to the environment due to new development. This Initial Study assesses the potential imparts that cold revilt from the development._ of_ 125 new residential units in the Town. Table 1 of the Initial Study identifies three policies and six implementation programs that would facilitate development of new residential units. As indicated in Table 1 of the Initial Study, Policies 1A and 1B, and Programs 1 through 4 would facilitate new developments of 125 total units, consisting of 59 units affordable to very low-income households and 66 units affordable to moderate income households. Policy 1B and Programs 5 and 6 could result in ten to 15 Below Market Price (BMP) units as well as ten second units in the Town. Policy 1C and Program 10 would provide assistance in the purchase of five newly developed housing units, consequently inducing incentives for the development of these units as part of the Town's potential housing supply. Determination: Proposed policies and programs of the updated Housing Element would not directly result in any potentially significant impacts on the environment. Specific development proposals that are facilitated by these policies and programs would have the potential to affect the environment, but the potential for impacts would vary on a project -by -project basis. Each development project would be subject to separate environmental review at the time a specific development proposal is made and project -specific impacts would be evaluated at that time. Statement of Reasons to Support Finding:...........................1. Aesthetics: Based on the goals of the updated Housing Element, it is anticipated that 125 housing units would be developed. Potential aesthetic impacts associated with construction of these units would vary on a project -by -project basis. Each development project would be subject to separate environmental review at the time a specific development proposal is made and project -specific aesthetics impacts would be evaluated at that time. 2. Agriculture Resources: The updated Housing Element proposes residential uses consistent with the residential land use designations of the Town's General Plan, and appropriate zoning to implement the policies and programs of the Element. While the Housing Element's provisions do not conflict with agriculture use zoning or Williamson Act contracts, and do not specify the conversion of any farmlands to non-agricultural uses, the effects of constructing 125 new housing units would vary on a project -by -project basis. Each development project would be subject to separate environment review at the time a specific development proposal is made, and project -specific constraints would be evaluated at that time. 3. Air Quality: Based on goals of the updated Housing Element, it is anticipated that 125 housing units would be developed. Traffic generated by future developments containing these new units would cumulatively degrade regional air quality. However, the increase in air emissions associated only with these new units would not be considered significant based on the Bay Area Air Quality Management District's (BAAQMD) threshold levels for potential significance. The BAAQMD threshold level for potential significance is 320 single-family residential units. At or above this number of units, traffic generated by future projects could cumulatively produce air quality problems, and an air quality impact assessment would need to be prepared and submitted to the BAAQMD for review. There would be potential for local construction -related or operational air quality impacts due to specific development projects. Each development project that would include some of these units would be subject to separate environmental review at the time a specific development proposal is made, and the potential for project -specific air quality impacts would be evaluated at that time. 4. Biological Resources: Potential biological impacts associated with construction of 125 new housing units would vary on a project -by -project basis. Each development project would be subject to separate environment review at the time a specific development proposal is made, and project - specific biological constraints (e.g.. presence of rare/endangered species, locally designated species or October, 2002 2 U Negative Declaration — Housing Element Update habitats) would be evaluated at that time. In .addition, the Town's Parks Division of the Parks ,and Public Works Department would provide detailed direction and guidance in the mitigation of potential impacts on biological resources. 5. Cultural Resources: The goals of the updated Housing Element, would promote the development of 125__new_housing units. Potential impacts on..culturMlesources, that would be_assaciated with construction of these new units would vary_.on_ a project -by -project basis. Each developmentproject would be subject to separate environment review at the time a specific development proposal is made, and project -specific cultural resources impacts would be evaluated at that time. 6. Geology and Soils: The updated Housing_ Element would have no direct effects on geological and soils resources. However, the potential geologic impacts associated with construction of 125 new housing units would vary on a project -by -project basis. Each development project would be subject to separate environment review at the time a specific development proposal is made, and project - specific geologic constraints (e.g., potential for fault rupture, ground shaking, ground failure, subsidence, expansive soils, etc.) would be evaluated at that time. 7. Hazards and Hazardous Materials: Based on goals of the updated Housing Element, it is anticipated that 125 housing units would be developed. Potential public health risks associated with construction of these new units would vary on a project -by -project basis. Each development project would be subject to separate environment review at the time a specific development proposal is made, and project -specific health hazards would be evaluated at that time. 8. Hydrology and Water Quality: While.the updated Housing Element, would have -no direct impacts on hydrological resources or water quality, the 125 new housing units that, would be developed as a result of the Element's implementation would have potential hydrologic impacts associated with the construction of these new units, and varying on a project -by -project basis. Each development project would be subject to separate environment review at the time a specific development proposal is made, and project -specific hydrologic impacts (e.g., changes in drainage patterns, increased surface runoff, flood hazards, water quality degradation, etc.) would be evaluated at that time. 9. Land Use and Planning: General Plan. For residential uses, the General Plan Land Use Element establishes four density ranges including "High Density Residential." The "High Density" designation allows for multi -family residential at density range of 12-20 dwellings per net acre, with its objective to provide "quality housing in close proximity to transit or a business area." Policies and programs of the updated Housing Element are consistent with this density range. Proposed Policy 1B of the updated Housing Element encourages higher density affordable housing. In addition, Program 2 of the updated Housing Element proposes continued provision of a density bonus of up to 100 percent for developments that include housing for elderly, handicapped, and/or very low and low-income households. High density residential is also encouraged in the "Mixed Use Commercial" designation under Program 4 of the updated Housing Element. Multi -family residential is allowed in all commercial zones and the "Commercial -Industrial" zone, subject to a conditional use permit. The Land Use Element also includes a "Mobile Home Park" designation (density range 5-12 dwellings per net acre) to encourage the preservation of the existing mobile home parks as a source of affordable housing. Proposed Policy 3A of the updated Housing Element "supports the preservation and conservation of existing housing units that provide affordable housing opportunities for Town residents and workers and strive to ensure that at least 30%of the housing stock are rental units." This proposed policy and the corresponding Program 16 (Mobile Home Preservation) would be consistent with the objectives of the Land Use Element's designation. The Land Use Element contains a Land Use Plan that reflects existing and recommended potential land uses for the Town. In general, medium density residential uses are designated primarily in the downtown area and areas to the north between Los Gatos Boulevard and Santa Cruz Avenue/Winchester Boulevard. The Land Use Plan identifies small pockets of medium density housing along the northern Town boundary in the Pollard Road and Los Gatos -Almaden Road October, 2002 3 Negative Declaration — Housing Element Update vicinities. Based on the Land Use Plan and location of vacant or redevelopable land, opportunities. for developing affordable housing through implementation of updated Housing Element policies would primarily be in the downtown area and Route 85 vicinity. Land uses in the Route 85 area are subject to policies specified in the Vasona Light Rail & Route 85 Element (Section 5 of the General Plan); the consistency of the policies in this specific plan with proposed polices of the updated Housing Element is discussed below. _ �. The Vasona Light Rail & Route 85 Element identifies two areas where affordable housing development would be encouraged: (1) for Area 1 (Vasona Junction), Policy V.P.5.2 states that "Development in this area shall consist of housing that meets the affordable housing goals of the Town..."; and (2) Area 4 (East Los Gatos Boulevard), which includes Policy V.P.8.2, "encourage development of residential rental units." Implementing Strategy V.I.8.2 specifies a rental/affordability preference: "Evaluate proposals with residential uses to assure that the Town's housing goals are being furthered." In addition, the Town Council adopted Resolution 1991-124 in 1991 on a site located in Area 3.3 (Central Core), which specified an increase in density from 5-12 units per acre to 10-20 units per acre. Although a General Plan amendment would be required, this resolution does indicate a potential for increasing densities to provide affordable housing. Proposed policies of the updated Housing Element are consistent with these policies. Policies of both Elements encourage affordable residential development and mixed use projects with residential uses. Other Land Use Issues. As indicated in Table 1 of the Initial Study, Policies lA and 1B supported by Implementation Programs 1 through 4, would facilitate new developments consisting of very low and moderate income housing. Policy 1B would assist the Town in the provision of BMP and second units. Implementation Programs 5 and 6 promote the development of ten to 15 BMP units .and ten. second units, respectively. Policy 1C and Implementation Program 10 (Participation in Mortgage Credit Certificate program) would assist in the purchase of five newly developed housing units. Specific projects that are facilitated by these policies and programs would be subject to separate environmental review and project -specific land use impacts (e.g. potential land use compatibility impacts, impacts on agricultural resources, and disruption of established communities) would be evaluated at that time. 10. Mineral Resources: The Los Gatos General Plan does not identify any regionally or locally - important mineral resources in the Town that could be affected by future residential development. 11. Noise: Based on goals of the updated Housing Element, it is anticipated that 125 housing units would be developed. Potential noise impacts associatedwithconstruction and occupation of these. new units would vary on a project -by -project basis. Each development project would be subject to separate environment review at the time a specific development proposal is made, and project -specific noise impacts or constraints would be evaluated at that time. 12. Population and Housing: Quantifiable housing goals of the updated Housing Element for the four-year period between 2002 and 2006 are: (1) development of up to 125 new housing units; (2) construction of ten to 15 BMP units; and (3) development of ten second units on existing parcels in the Town. The additional 125 housing units could add approximately 318 persons to the Town's current population of 28,592 as indicated in the 2000 census. This increase would represent one percent of the Town's 2005 population as projected by the Association of Bay Area Governments (ABAG), and this one percent increase in population would be within ABAG's projected three percent growth rate over the next five years. Therefore. Plan implementation would not represent a significant increase in local or regional population. The project's population increase of 318 persons would represent 0.02 percent of Santa Clara County's 2000 total population of approximately 1.8 million. Implementation of the updated Housing Element is not expected to induce substantial growth within the Town. The project's estimated increase of 318 persons, when averaged over the four-year planning period, would represent a 0.3 percent increase per year. Since 1980, the Town's population has been increasing at a rate of 0.3 percent annually, and the incremental growth rate associated with the updated Housing Element could be accommodated within the existing growth rate. For October. 2002 4 t. U Negative Declaration — Housing Element Update comparison purposes, Santa Clara County's population growth rate was 50 percent between 1080 and 2000, averaging 2.5 percent annually. It is unknown whether any existing affordable housing would be lost, but the purpose of the updated Housing Element is to provide new housing units, rehabilitate existing housing units, and preserve existing_ _affordable housing units. Policies 2A...and.,3A. of tbe.. updated—ii0usiztg. dement maintain the existing number of affordable. _units through_preservation,.rehabilitation,. or_ replacement__ (refer to Table 1 of the Initial Study for specific policies). 13. Public Services: As indicated in Table 1 of the Initial Study, Policies IA and 1B, and Programs 1 through 4 would facilitate new developments of 125 total units, consisting of 59 units affordable to very low-income households and 66 units affordable to moderate income households: Policy 1B and Programs 5 and 6 could result in development of. ten to 15 BMP units as well as ten second units in the Town. Policy 1C and Program 10 would provide assistance in the purchase of five newly developed housing units, inducing the development of these units as part of the Town's potential housing supply. Development of these new units would increase demand for public services. However, as indicated by the Town's General Plan, "Los Gatos is a mature, predominantly built -out community." (page L-1) Appropriate levels of public services are available throughout the community. Most of the new development is expected to be infill or redevelopment, occurring in areas that are already developed, or adjacent to urbanized areas. Therefore, these units would not significantly increase demand for police, fire, or maintenance services. Each development project that would include some of these units would be subject to review by the Santa -Clara County Fire Department, and . Fire Department requirements would be identified at that time. The school districts charge a school impact fee to mitigate increased demand for schools resulting from all new residential development. Additionally, the Safety Element of the Town's General Plan identifies goals, policies, and implementing strategies to ameliorate natural and urban safety hazards, and to ensure appropriate public services levels for the community. The Open Space Element provides for improvement measures for public parks and associated facilities. 14. Recreation: Based on goals of the updated. Housing Element, it is anticipated that. 125 housing units would be developed. Development of these new units would incrementally increase demand for recreational facilities. However, most of this new development would be infill, occurring in areas that are already developed, or adjacent to urbanized areas. In addition, as mentioned in Section XII, Population and Housing, project -related increases in population would represent approximately 0.3 percent per year increase in population over the 2002 — 2006 planning period of the updated Housing; this small population increase would not significantly increase existing or expected future demand on recreational facilities. 15. Transportation and Traffic: The goals of the updated Housing Element, would be expected to generate 125 new housing units from 2002 through 2006. Depending on the size of the residential units, this number of units could generate 750 to 1,000 trips per day. Assuming future development proposals associated with the 125 additional housing units would be consistent with the existing General Plan land use designations, no significant cumulative traffic impacts associated with these housing units would be anticipated. The EIR for the General Plan 2000 indicated that implementation of the General Plan would not result in a decrease in capacity at any mid -block roadway segment or at any signalized intersections that would result in a change in level of service. However, local traffic impacts could result from such traffic increases, depending on the locations of new units. The nature and extent of local traffic impacts would vary on a project -by -project basis. These units would be subject to separate environment review at the time a specific development proposal is made, and project -specific traffic impacts (e.g., level of service operation, access problems, traffic or pedestrian safety hazards, etc.) would be evaluated at that time. 16. Utilities and Service Systems: As described in Section XIII, the updated Housing Element would facilitate the development of new affordable housing units as well as BMP and second units in the Town. Development of these new units would increase the demands on existing utilities and services systems. However, most of this new development would be infill or redevelopment, occurring in areas October, 2002 5 Negative Declaration — Housing Element Update that are already developed, or adjacent to . urbanized . areas. At this time, there are no major infrastructure or delivery issues in Los Gatos. However, there are certain areas in Town where water and/or sewer systems are old and require replacement or upgrade. New developments could be required to upgrade old water and sewer lines as part of the proposed development. The extent of repairs or improvements would depend on the size and location of the new residential units. Each development project would be subject to--separate-review by the Town and any required upgrading of local infrastructure would be identified by the Town at that time. The updated Housing Element indicates that the San Jose Water Company services 95 percent of the Town. Some areas of the Town, e.g. downtown and areas on the east side of Town, are served by a relatively old water delivery system, with pipes that need to be replaced. The Town and the San Jose Water Company are aware of these conditions and the Water Company is developing plans to improve those lines. Similarly, the sanitary sewer storm drain systems includes facilities that are old and in need of replacement. The West Valley Sanitation District and the Town, respectively, are responsible for replacing and upgrading these facilities. - With regard to the adequacy of regional water supply/treatment and wastewater treatment capacities to accommodate future project -related growth, the new affordable units would result in a population increase of about one percent of the population projected for Los Gatos by 2020. This small population increase would not significantly increase future demands on these regional facilities. Population increases resulting from the development proposals of the Housing Element would remain within the build -out projections of the 2000 General Plan. 17. Mandatory Findings of Significance: Proposed policies and programs of the updated Housing Element would not directly degrade the quality of the environment, achieve short-term goals to the disadvantage of long-term productivity, or significantly affect human beings. Such effects would be project -specific, varying on a project -by -project basis. Each development project would be subject to separate environmental review at the time a specific development proposal is made and project - specific impacts would be evaluated at that time. However, most of this new development would be infill, occurring in areas that are already developed, or adjacent to urbanized areas. Such locations would be expected to help minimize the potential for impacts on environmental resources. The Initial Study addresses the potential cumulative impacts that could result from development of these 125 new units throughout the Town of Los Gatos. Since these units would be developed under many separate development projects as part of future residential and commercial proposals, the incremental impacts associated with each development proposal will be evaluated under each development's separate environmental review. Copies of the Initial Study used to make the above recommendation are on file and available for public inspection during regular business hours at the Town Community Development Department, 110 East Main Street, Los Gatos, California. Date' Bud N. Lortz, D' ctor ofSommunity Development October, 2002 6 _...I The Planning and Zoning Law ria, as modified for California, and grazing land. "Grazing Ian means Iand on which the existing vegetation, whether gr naturally or through management, is suitable for : • ' 1: or browsing of livestock. (4) "Amount of land converted to agricultural- use" means those lands which were brought into agricultural use o reestab- lished in agricultural use and were not shown as agric tural land on Important Farmland Series maps maintained by the Depart- ment of Conservation in the most recent biennial efort. (5) "Amount of land convertedfrom agricul aluse" means those lands which were permanently converte or committed to urban or other nonagricultural uses and were hown as agricul- tural land on Important Farmland Series ma maintained by the Department of Conservation and in the ost recent biennial report. (c) Beginning August 1, 1986, an continuing biennially thereafter, the Department of Consery ion shall update and send counties copies of Important Farm nd Series maps. Counties may review the maps and notify t department within 90 days of any changes in agricultural Ia d pursuant to subdivision (b) that occurred during the previou scal year, and note and request correction of any discrepanci or errors in the classification. of agricultural lands on the map . The department shall make those corrections requested by counties. The department shall provide staff assistance, as available, to collect or acquire information on the amount of land converted to, or from, agricultural use for those counties for whicK Important Farmland Series maps exist. (d) The Department of Conservation may also acquire any supplemental information which becomes available from new soil surveys and establish comparable baseline data for counties not included in the 1984 baseline, and shall report on the data pursuant to this/section. The Department of Conservation may prepare Interim Farmland maps to supplement the Important Farmland Series maps. (e) The Eegislature finds that the purpose of the Important Farmland/Series map and the Interim Farmland maps is not to considerlthe economic viability of agricultural lands or their current designation in the general plan. The purpose of the maps is limited to the preparation of an inventory of agricultural lands, as defined in this chapter, as well as land already committed to future urban or other nonagricultural purposes. / (Amended by Stats. 1983, Ch. 924; Amended by Stats. 1985, Ch. 1342; Amended by Stats. 1986, Ch. 1053) Article 10.6. Housing Elements 65580. The Legislature finds and declares as follows: (a) The availability of housing is of vital statewide importance, and the early attainment of decent housing and a suitable living environment for every California family is a priority of the highest order. (b) The early attainment of this goal requires the cooperati-ie of government and the private sector in an effort :c expand housing opportunities and accommodate the housing needs of Californians of all economic levels. (c) The provision of housing affordable to low -and =de::+.te- income households requires the cooperation of all teve's of government. (d) Local and state governments have a responsibility to use the powers vested in them to facilitate the improvement and devel- opment of housing to make adequate provision for the housing needs of all economic segments e€t e-eotnrnunity.- - ---• - (e) The Legislature recognizes that in carrying out this respon- sibility, each local government also has the responsibility to consider economic, environmental, and fiscal factors and com- munity goals set forth in the general plan and to cooperate with other local governments• and. the state in addressing regional housing needs. (Added by Stats. 1980, Ch. 1143.) 65581. It is the intent of the Legislature in enacting this article: (a) To assure that col:nties and cities recognize their respon- sibilities in contributing to the attainment of the state housing goal. (b) To assure that counties and cities will prepare and imple- ment housing elements which, along with federal and state programs, will move toward attainment ofthe state housing goal. (c) To recognize that each locality is best capable of determin- ing what efforts are required by it co ontzibutc r • the attainment of the state housing goal, provided such. a determination is compatible with the state hou int goal and regional housing needs. (d) To ensure that each local government cooperates with other local governments in order to address regional housing needs. (Added by Stats. 1980, Ch. 1143.) 65582. As used in this article:. (a) "Community," "locality," "local government," or "juris- diction" means a city. city and county, or county_. (b) "Council oPgovemments" means a single or multicounty council created by a joint powers agreement pursuant to Chapter 5 (commencing with Section 6500) of Division I nfTitle 1. (c) "Department" means the Department of Housing and Community Development. (d) "Housing element" or "element" means the housing ele- ment of the community's general plan, as r .aired pursuant to this article and subdivision (c) t,i Section 65302. (e) "Low -and moderate-irccmc bousctho! " moans persons and families of iOw or lned:rate incomes J. deiced by Section 50093 of the Health and Safet-y (Added by Stars. 1980. Ch. 11 i n: * c c:i b; 8r:_s. 1989, Ch. 1140; Amended by Stacy:.: 990, Ch. 1441.) 65583. The housing elC^.lt'.nt;'lE:'.I COT:iiSt C rtti i S1'ior' and analysis of existing and projected huus:ng needs and a statement of goals; poi;c:,:s. quanted oI,, .:civcs. tlnanciai resources, and sch .^si•:r? programs for er. erservarion. im- provement, and dew eloptnertz •?: i1C•+!c;! r. Tit: heusing element shall identify adecu:<re i s for !:ou g, .cciu d ::::ta. hous- ing:, factory -built housing. and rlob.iehames Eiiah make adequate provision F r t!i. x sti: , and pr, -'.ct d n..ods cf all economic segments; itho:'mrm:n.' Tz::ei, .cristnll.ontain a!' of the Ji;;:wil (a) An as; ssni.... of ..,.;si•• _, :a , ... _ ..n of The asses.:>r•e::.... _ _.....: _ _ _ ..... i:.• . . (1) ar- rt Exhbiit B The Planning and Zoning Law documentation ofprojections and a quantification ofthe locality's existing and projected housing needs for all income levels. These existing and projected needs shall include the locality's share of the regional housing need in accordance with Section 65584. (2) An analysis and documentation of household characteris- tics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (3) An inventory of land suitable for residential development, including vacant sites and sites having potential for redevelop- ment, and an analysis of the relationship of zoning and public facilities and services to these sites. (4) An analysis of potential and actual governmental con- straints upon the maintenance, improvement, or development of housing for all income levels, including land use controls, build- ing codes and their enforcement, site improvements, fees and other exactions required of developers, and Ioca1 processing and permit procedures. The analysis shall also demonstrate local efforts to remove governmental constraints that hinder the local- ity from meeting its share of the regional housing need in accordance with Section 65584. (5) An analysis of potential and actual nongovernmental con- straints upon the maintenance, improvement, or development of housing for all income levels, including the availability of financ- ing, the price of land, and the cost of construction. (6) An analysis of any special housing needs, such as those of the handicapped, elderly, large families, farmworkers, families with female heads of households, and families and persons in need of emergency shelter. (7) An analysis of opportunities for energy conservation with respect to residential development. (8) An analysis of existing assisted housing developments that are eligible to change from low-income housing uses during the next 10 years due to termination of subsidy contracts, mortgage prepayment, or expiration of restrictions on use. "Assisted hous- ing developments," for the purpose of this section, shall mean multifamily rental housing that receives governmental assistance under federal programs listed in subdivision (a) of Section 65863.10, state and local multifamily revenue bond programs, local redevelopment programs, the federal Community Develop- ment Block Grant Program, or local in -lieu fees. "Assisted housing developments" shall also include multifamily rental units that were developed pursuant to a local inclusionary hous- ing program or used to qualify for a density bonus pursuant to Section 65916. (A) The analysis shall include a listing of each development by project name and address, the type of governmental assistance received, the earliest possible date of change from low-income use and the total number of elderly and nonelderly units that could be lost from the locality's low-income housing stock in each year during the 10-year period. For purposes of state and federally funded projects, the analysis required by this subparagraph need only contain information available on a statewide basis. (B) The analysis shall estimate the total cost of producing new rental housing that is comparable in size and rent levels, to replace the units that could change from low-income use, and an estimated cost of preserving. the assisted housing developments. This cost analysis for replacement housing may be dcne aggre- gately for each five-year period and does not have to contain a project by project cost estimate. (C) The analysis shall identify public and private nonprofit corporations known to the 'local government which have legal and managerial capacity to acquire and manage these housing developments. (D). The analysis shall identity and consider the use of all federal, state, and local financing and subsidy programs which can be used to preserve, for lower income households, the assisted housing developments, identified in this paragraph, including, but not limited to, federal Community DeN elopment Block Grant Program funds, tax increment funds received by a redevelopment agency of the community, and administrative fees received by a housing authority operating within the com- munity. In considering the use of these financing and subsidy programs, the analysis shall identify the amounts of funds under each available program which have not been legally obligated for other purposes and which could be available for use :: preserving assisted housing developments. (b) (1) A statement of the cor:nur:it'."s quantified objectives, and policies relative to the mainte:ar.ce, preserva- tion, improvement, and development :.f h, usiii (2) It is recognized that the total hu si: g nods identified pursuant to subdivision (a) may exceed available resources and the community's ability to satisfy this need within the content of the general plan requirements outlined in Article 5 (commencing with Section 65300). Under these circumstances, he quantified objectives need not be identical to the total housi; needs. The quantified objectives shall establish the maximum number of housing units by income category that can be constructed. reha- bilitated, and conserved over a five-year time period. (c) A program which sets forth a five-year schedule of actions the local government is undertaking or intends to rude. -take to implement the policies and achieve the Goals ar'.c -bjecti-'a ui the housing element through the administration of land use and development controls, provision of regulator.' com-.'ssicr_s and incentives, and the utilization of coo;•opdaie reds:.a and st::e financing and subsidy prcgrarn: will ;tilable u::d uu iza- tion of moneys in a Low and 1-lcder:.:a Il:c n : tl ,l!s ? ? F::ac: of an agency if the locality has estab:,i:... de. area pursuant to the Community 24 (commencing with Section 33!..1-,)01 the Health an,.4. Safety Code). In order to make ado :L of all economic segments of the corn the pre_ ::.:n,il:ell do all of the following: (1) Identify adenit,:Cit t ! .:: ' 1 be iriC7 aiiabl= throughappropr:;a.o _... t i .._...�.._ ........_.,...... _w th public servic;'� and the deveiopo...at or •r _ levels, ircic.n :..:ilti:.-... ....._..... :.us in orde: to ,.._ ti: subdivision `• . ,-: _ ._ ic, = ( .. . accommodtito the purr.nant 48 • 1998 Planning, Zoning, and Development Laws The Planning and Zoning Law cient sites with zoning that permits owner -occupied and rental multifamily residential use by right, including density and devel- opment standards that could accommodate and facilitate the feasibility of housing for very Iow and low-income households. For purposes of this paragraph, the phrase "use by right" shall mean the use does not require a conditional use permit, except when the proposed project is a mixed -use project involving both commercial and residential uses. Use by right for all rental multifamily residential housing shall be provided in accordance with subdivision (f) of Section 65589.5. (2) Assist in the development of adequate housing to meet the needs of low- and moderate -income households. (3) Address and, where appropriate and Iegally possible, remove governmental constraints to the maintenance, improve- ment, and development of housing. (4) Conserve and improve the condition of the existing afford- able housing stock, which may include addressing ways to mitigate the loss of dwelling units demolished by public or private action. (5) Promote housing opportunities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, or color. (6) (A) Preserve for lower income households 'the assisted housing developments identified pursuant to paragraph (8) of subdivision (a). The program for preservation of the assisted housing developments shall utilize, to the extent necessary, all available federal, state, and local financing and subsidyprograms identified in paragraph (8) of subdivision (a), except where a community has other urgent needs for which alternative funding sources are not available. The program may include strategies that involve local regulation and technical assistance. (B) The program shall include an identification of the agencies and officials responsible for the implementation of the various actions and the means by which consistency will be achieved with other general plan elements and community goals. The local government shall make a diligent effort to achieve public partici- pation of all economic segments of the community in the devel- opment of the housing element, and the program shall describe this effort. (d) The analysis and program for preserving assisted housing developments required by the amendments to this section en- acted by the Statutes of 1989 shall be adopted as an amendment to the housing element by July 1, 1992. (e) Failure of the department to review and report its findings pursuant to Section 65585 to the local government between July 1, 1992, and the next periodic review and revision required by Section 65588, concerning the housing element amendment required by the amendments to this section by the Statutes of 1989, shall not be used as a basis for allocation or denial of any housing assistance administered pursuant to Part 2 (commencing with Section 50400) of Division 31 of the Health and Safety Code. (Amended by Stats. 1984, Ch. 1691. Effective October 1, 1984; Amended by Stats. 1986, Ch. 1383; Amended by Stats. 1989, Ch. 1451; Amended by Stats. 1991, Ch. 889. See notes immediately following and note following Section 65589.7.) Note: Stats. 1984, Ch. 1691, also reads: SEC. 1. The Legislature finds and declares that because of economic, physical, and mental conditions that are beyond their control, thousands of individuals and families in California are homeless. Churches, local governments, and nonprofit organiza- tions providing assistance to the homeless have been over- whelmed by a new class o�home(e'ss: `amtIi wttt children, individuals with employable skills, and formerly middle-class families and individuals with long work histories. The programs provided by the state, Iocal, and federal govern- ments, and by private institutions, have been unable to meet existing needs and further action is necessary: The Legislature finds and declares that • two levels of _housing assistance are needed: an emergency fund to supplement temporary shelter programs, and a fund to facilitate the preservation of existing housing and the creation of new housing units affordable to very low income households. It is in the public interest for the State of California to provide this assistance. The Legislature further finds and declares that there is a need for more information on the numbers of homeless and the causes ofhomelessness, and for systematic exploration of more compre- hensive solutions to the problem. Bo± local and state govern- ment have a role to play. in identifying, understanding, and devising solutions to the problem ofhomelessness. Note: Stats. 1986, Ch. 1353. also rcn ci: SEC. 3. The amendments to paragraph (1) ofsubdivision (c) of Section 65583 of the Government Cede made by the act adding this section during the 1986 Regular Session of the Legislature shall require an identification of sites for emergency shelters and transitional housing by January 1, 1988, or by the next periodic review of a housing element pursuant to Section 65588 of the Government Code, whichever is into-. in order to give local governments adequate time to plan for, and to assist in the development of, housing for homeless persons, if it is determined that there is a need for emergency shelter pursuant to paragraph (6) of subdivision (a) of Section' 5583 of the Government Code. 65583.1. (a) The Department of Housing and Community Development, in evalt_atir_g a praposad or adopted housing element for consistency with state slaw, may allow a local govern- ment to identify adequate sites, . s required pursuant to Section 65583, by a variety of methods, including, but not limited to, redesignation of property to a rwre irmeitse land use category and increasing the density alleweLi rvitian one or more categories. Nothing in this section reduces a local government's responsibil- ity to identify, by inc me cat::.. ,ry . the 'xi ,1 number of sites for residential development as required by this article (b) Sites that contain Der-'1,•,s nt !towing units'.ocated on a military base under oing closure, co::' r:;ion may be identified as an a•.ie:.:sate site pry d 'd `1 ^ :sine ..etnent demonstrates that the housing units' :11 e 'i'• ;!able fc:: occupancy by house- holds u,...in c::c of th:. .3lernerit. Not sites containing h::usiry, :pill. SCir i_ ..; L a ...'7 f_.cr demolition or conversion :o n_.:resa !ai sl :.0 e• .:. , as an adequate site. -. ;vci- pis; and shall address frog; ss = rr.= _ ' _. ir...._ reports pro- vided to ns=,:::_; :r;: •r.�cr: sic. (b) of Section 6540 i. ProjectType7Size " TypicafProcessing Time Campbell Planned Development 20 unit project example 12 months Campbell small project (4-5 units) six months Cupertino any size project two months minimum'' 2 Los Altos Planned Development3 three months minimum Mountain View large project three months minimum2 Santa Clara Planned Development3 120 day minimum (4 mos.) Saratoga Planned Development3 12 months Sunnyvale large project (more than 9 units)4 six to eight months2 Sunnyvale small project (4-9 units) three to four months 'Includes architectural review 2Staff work with applicants in advance of submittal not counted as part of processing time 3Architecture & Site application can be concurrent with Planned Development application °Special studies such as acoustical or traffic analysis typically required; this extends the process N:1DEV SUZANNE\Housing Element\Multi-Family Table.wpd ATTACHMENT 4 . TT ATTACHMENT 5 I e ( •)