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02 Desk Item - Housing Element UpdateMEETING DATE: 11/12/02 ITEM NO. DESK ITEM COUNCIL AGENDA REPORT DATE: November 12, 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 DISCUSSION: HCD Comments On November 12, 2002, staff had further discussion with the State Department of Housing & Community Development (HCD) regarding the proposed language changes to the Housing Element Technical Appendix. There are four remaining issues to be resolved as follows: • Site designation for rezoning to higher density The Council report includes a complete discussion on this topic. Staff has proposed to target the area within a 1/2 mile radius of the future Vasona light rail station for possible rezoning to a higher density. Language will need to be added to the Housing Element Technical Appendix in the form of describing the land uses and the approximate parcel sizes within each land use category, as requested by HCD. • ADA compliance Wording clarification is needed in the Technical Appendix to indicate that the Zoning Ordinance is in compliance with the Americans with Disabilities Act (ADA). Language is also needed to describe the process for retrofitting an existing home. PREPARED BY: BUD N. LORTZ, DIRECTOR OF COMMUNITY DEVELOPMENT N:\DEVISUZANNE1CouncilADesk Items\Housing Element -I I-12-02.wpd Reviewed by: Assistant Town Manager Town Attorney Clerk Finance Community Development Revised: 11/12/02 5:11 pm Reformatted: 5/30/02 r PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: HOUSING ELEMENT UPDATE November 12, 2002 • Provisions for homeless and transitional facilities HCD expressed a concern that homeless shelters and transitional facilities are not the same as a Group Home. The Town would process a proposal for a homeless shelter or transitional facility under this category. Staff will clarify this process by revising the Technical Appendix. The revised language will reference the Town Code as a source of information on the Conditional Use Permit (CUP) process. A CUP would be required for a homeless or transitional facility for seven or more people. • Architecture & Site approval process clarifications Additional language is needed in the Technical Appendix to address on and off -site improvements that may be required under an Architecture & Site approval, as well as to explain arborist report requirements. Negative Declaration Comments The review period for the Negative Declaration ended November 11, 2002 at 5:00 pm. Comments on the draft Negative Declaration were received late on November 8, 2002, following distribution of the Council packet. Attachment 7 is a letter from the Santa Clara Valley Water District advising that future housing projects will be subject to NPDES storm water management criteria. The comment is of an advisory nature and does not require any changes to the environmental documents or action to be taken at this time. Attachment 8 is a letter from the State Department of Transportation (Cal Trans), and advises that any housing project with 100 or more units is required to be reviewed by that agency. A second comment about the need for an encroachment permit relates to the Sobrato Vasona Gateway project. A copy of the letter has been forwarded to Sobrato Development. No changes are needed to the Negative Declaration. CONCLUSION: It is recommended that the Council make the Negative Declaration and adopt the Resolution (Attachment 1 to the staff report) updating the Housing Element of the General Plan by adopting General Plan Amendment GP-02-01 and repealing Resolution 19997-56, and direct staff to revise language in the Housing Element Technical Appendix as set forth is this desk item. Attachments: 1.-5 Previously distributed 6. Letter from HCD (six pages), received November 12, 2002 7. Letter from Santa Clara Valley Water District (one page), received November 8, 2002 8. Letter from State Department of Transportation (one page), received November 8, 2002 BNL:SD 11/12/2002 17:41 9163272643 HPD PAGE 02/07 s.TATE OFC?1-JFORNI 1311S1NESS T ANR� S_ RTnrinN DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT Division of Housing Policy Development 1 ROO Third Street, Snite 430 `cN0. Box 952053 Sacromento. CA 94252-2053 W14wW.hC11.Ma. Q (916) 123-3176 / FAX; (916) 327-2643 November 12, 2002 Mr. Bud Lortz Director of Community Development Town of Los Gatos 1.10 East Main Street Los Gatos, California 95031 Dear Mr. Lortz: Re: Review of the Town of Los Gatos' Revised Draft Housing Element Thank you for submitting the Town of Los Gatos' revised draft housing element, received for our review on. September 13, 2002. As you know, the Department of Housing and Community Development (Department) is required to review draft housing elements and report our findings to the Town pursuant to Government Code Section 65585(b). Our review was facilitated by telephone conversations with you and Mr. Tom Williams of the Town's staff and Ms. Melanie Schaffer Freitas, the Town's consultant. Los Gatos' revised draft housing element addresses several of the statutory requirements described in our June 17, 2002 review. For example, the element now documents the affordability of units constructed in the Town since January 1, 1999, states that CDBG and HOME funds arc available to preserve units at -risk of losing affordability controls during the current planning period, and includes an expanded analysis of the Town's parking standards and household characteristics. However, revisions to the Town's housing element are still needed to comply with State housing element law (Article 10.6 of the Government Code)- In particular, the element should demonstrate that Los Gatos has identified adequate sites to accommodate the Town's remaining share of the regional housing need for lower- and moderate -income households. These and other changes needed to bring Los Gatos' housing element into compliance with State law are summarized in the Appendix. We hope our comments are helpful and we are available to assist the Town in updating its housing element. If you have any questions or would like to arrange a meeting in. Los Gatos or Sacramento, please contact Michelle Woods, of our staff, at (916) 327-8881. In accordance with requests received pursuant to the Public Records Act, we are forwarding a copy of this letter to the individuals listed below. Sincerely, Cathy E�reswell Dcputy erector Attachment 6 Enclosure 11/12/2002 17:41 9163272643 HPD PAGE 03/07 Mr. Bud Lortz Page 2 cc: Tom Williams, Town of Los Gatos Melanie Schaffer Freitas, Freitas + Freitas Mark Stivers, Senate Committee on Housing & Community Development Suzanne Ambrose, Supervising Deputy Attorney General, AG's Office Terry Roberts, Governor's Office of Planning and Research Kimberley Dellinger, California Building Industry Association Marcia Saikin, California Association of Realtors Marc Brown, California Rural Legal Assistance Foundation Rob Weiner, California Coalition for Rural Housing John Douglas, AICP, Civic Solutions Deanna Kitamura, Western Center on Law and Poverty S. Lynn Martinez, Western Center on Law and Poverty Alexander Abbe, Law Firm of Richards, Watson & Gershon Ruben Duran, Law Firm of Neufield, Jaffe & Levin I1cne J. Jacobs, California Rural Legal Assistance, Inc. David Booker, California Housing Council Sue Hestor, Attorney at Law Paul Campos, Horne Builders Assoc. of Northern California Shannon Dodge, Non -Profit Housing Association of Northern California Eve Bach, Arc Ecology William Litt, Bay Area Legal Aid 11/12/2002 17:41 9163272643 HPD PAGE 04/07 APPENDIX Town of Los Gatos The following changes would bring Los Gatos' revised draft housing element into compliance with. Article 10.6 of the Govemment Code. Accompanying each recommended change we cite the supporting section of the Government Code. The particular program examples or data sources listed arc suggestions for your use. Housing element technical assistance information is available on our website at www.hcd.ca.Rov. Refer to the Division of Housing Policy Development and the section pertaining to State Housing Planning. Among other resources, the Housing Elements section contains the Department's publication. Housing Element Questions and Answers (Qs and As) and the Government Code addressing State housing clement law. A. Housing Needs, Resources and Constraints 1. Expand the inventory of land suitable for residential development, including vacant sites and sites having potential for redevelopment, and analyze the relationship of zoning and public services available to these sites (Section 65583(a)(3)). a. In response to our June 17, 2002 review, Los Gatos has revised its land inventory to include a description of the Vasona Gateway, Terreno de Flores, and Los Gatos Village Creek developments, and, a staternent indicating that the Town will consider rezoning at least five acres of medium density land to a higher density if the Town's Below Market Price (BMP) program does not produce the number of units needed to accommodate the Town's remaining share of the regional housing need for very low-income persons by late 2003. While Los Gatos has achieved some success in facilitating affordable housing development with its BMP program, such inclusionary programs are not interchangeable with site programs. Housing element law requires Los Gatos to identify adequate sites, which will be made available with appropriate zoning and development standards, to accommodate the Town's share of the regional housing need for lower -income households. Furthermore, a proposal Co "consider" rezoning medium density ]and to an unspecified higher density use does not demonstrate a firm commitment on the Town's part to provide the needed sites nor indicate the adequacy of such zoning to address the need. illustration #19 includes over 400 acres of land that has been designated for residential use, however, as described in our June 17, 2002 review, the element does not address the adequacy of the development standards applied to those sites. For example, the Town proposes to accommodate units affordable to very low-income households on sites zoned 5 to 12 units to the acre and units affordable to moderate -income households on sites zoned 1 to 5 units to the acre. It appears that these affordability projections are not based upon the appropriateness of the zoning densities, but upon the expectation that the cost of the lower - and moderate -income units will be substantially subsidized by the Town's BMP program. As noted above, the BMP program can not be used in lieu of a program to identify adequate sites with appropriate zoning and development standards. 11/12/2002 17:41 9163272643 HPD PAGE 05/ 07 2 The element discusses the potential for accommodating high -density residential development through Los Gatos' mixed -use program and its enhanced density bonus program (page 50). In regards to thc Town's mixed -use program, the element cites the example of thc Vasona Gateway project, which was developed at an "effective" density of 30 units to the acre. A density of 30 units to the acre would certainly be adequate to accommodate very low- and moderate -income housing in Los Gatos, however, the element does not explain how the "effective" density of the Vasona project was calculated or whether such a density could be replicated on another site. Furthermore, the element does not fully describe the Town's residential mixed -use development standards or the financial and regulatory incentives the Town provides to encourage residential mixed -use projects (see comment A.2.d of our June 17, 2002 review letter). Los Gatos' enhanced density bonus is a noteworthy strategy for affordable housing development, but more information about the implementation and adequacy of this strategy is required. For example, such a proposal should be implemented to apply to specific parcels through the use of an affordable housing overlay or similar program. As a result of the issues described above, Los Gatos should take additional measures to identify adequate sites to accommodate its remaining share of the regional housing need. Please refer to comment B.1.a below. b. Describe the number of parcels in the RM:5-12 and RI-D sites and whether any of the sites identified for lower- and moderate -income use are less than one acre in size. If yes, the element should describe any assistance the Town will provide to facilitate and encourage development of small parcels and any recent trends within Los Gatos that demonstrate the feasibility of development on small lots. Note the element was not revised to address this requirement (see comment A.2.b of our June 17, 2002 review). c. Analyze whether any sites require rezoning to achieve the unit projections provided in Illustration #19. Note the element was not revised to address this requirement (see comment A.2.c of our Junc 17, 2002 review). d. The discussions on pages 41 and 50 indicate that mixed -use development is permitted in any residential zone, that mixed -use development is processed as a Planned Development, and the Town is refining a plan to encourage mixed -use development. To ensure the success implementation of program #4 and to demonstrate that the Town has the ability to accommodate all or a portion of its remaining new construction need with residential mixed -use projects, the element should also describe densities, floor area ratios, parking requirements for mixed -use development; as well as any financial and regulatory incentives Los Gatos will use to encourage mixed -use development (see comment A.2.d of our June 17, 2002 review). 2. Analyze potential and actual governmental constraints upon the maintenance, improvement, and development of housing for all income Ievels, including land use controls and local processing and permit procedures. The analysis shall also demonstrate local efforts to remove governmental constraints that hinder the locality from meeting its share of the regional housing need in accordance with Section 65584 (Section 65583(a)(4)). 11/12/2002 17:41 9163272643 HPD PAGE 06/07 3 a. In response to our June 17, 2002 review, Los Gatos has expanded the analysis (page 46) to include a more detailed summary of the permitting process for residential mixed -use projects. However, except for a brief reference to arborist and architectural reviews, it does not address the actual design and compatibility issues the Town considers before approving a project. The element should be revised to include this information. It should also clarify if the permitting process described (pagc 46) also applies to other types of multifamily projects. Finally, in regards to the arborist and architectural reviews, the element should describe these reviews in greater detail and clarify their impact on the supply and cost of housing. For assistance, please refer to the Department's Qs and As publication (page 22). b. The element describes (page 46) Los Gatos' code enforcement policies; however, it does not appear that the element was revised to include an analysis of on- and off -site improvement requirements. Please refer to comment A.4.b of our June 17, 2002 review letter. c. We commend Los Gatos for its efforts to require universal design features in residential projects (page 43). In order to comply with the requirements of recently enacted legislation (Chapter 671, Statutes of 2001), the element should also describe the Town's permitting process for ADA retrofits and indicate whether or not the Town's zoning code is in compliance with the ADA. For more information please refer to comment A.4.d of our June 17, 2002 review letter. B. Housing Programs 1. Identify adequate sites which will be made available through appropriate zoning and development standards and with public services and facilities needed to facilitate and encourage the development of a variety of types of housing for all income levels, including rental housing, .factory -built housing, mobilehon7.es, and emergency shelters and transitional housing and sites for farmworker housing. Where the inventory of sites, pursuant to paragraph (3) of subdivision (a), does not identify adequate sites to accommodate the need for groups of all household income levels pursuant to Section 65584, the program shall provide for sufficient sites with zoning that permits owner -occupied and rental multifamily residential use by right, including density and development standards that could accommodate and facilitate the .feasibility of housing for very low- and low-income households (Section 65583(c)(1)). a. Depending upon the outcome of the analysis described above, Los Gatos may need to adopt additional policies to accommodate its remaining share of the regional housing need for very low- and moderate -income persons. For example, the Town may need to adopt one or more of the following policies: • Identify an area within the Town where high -density, transit -oriented development will be allowed and facilitated, the densities at which the development will occur, and the number of units that could be accommodated. ■ Identify an area within the Town where residential mixed -use will be allowed, encouraged and facilitated, the applicable development standards (see comment A.2.d of our June 17. 2002 review letter), and the number of units that could be accommodated. 11/12/2002 17:41 9163272643 HPD PAGE 07/07 4 • Apply an enhanced density bonus, through an affordable housing overlay or other program, to specific parcels that currently has a RM:12-20 zoning designation. • Rezone RM:5-12, R1-D, H-R, or R-1 sites for RM:12-20 use. Note this policy would only be appropriate if the element can demonstrate that development can occur at the top of the RM:12-20 range. b. In response to our Junc 17, 2002 review, Los Gatos has included a statement in the element indicating that the Town does not have any zoning constraints specifically for homeless or transitional housing (page 16). To meet the requirements of State law, the element should identify zoning districts where emergency shelters and transitional housing are allowed by permitted or conditional use and describe how the development of these uses is facilitated and encouraged by Los Gatos' land use policies. For more information about this requirement, refer to the Department's Qs and As publication (page 35). 2. The housing element shall contain programs, which "address, and where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing" (Section 65583(c)(3)). As noted above, Los Gatos' housing element requires a more thorough analysis of potential governmental constraints. Depending upon the results of that analysis, the Town may need to add programs to remove or mitigate any identified constraints. 408 266 9751; NOV-8-02 20:07; PAGE ill SENT BY: SCVWD CPRU SCVWD File: 24561 Date: November 8, 2002 Santa Clara Valley Water District6 Community Projects Review Unit, Main Building 5750 Almaden Expressway, San Jose, CA 95118 My Phone Number: (408) 265-2607 ext. 2439 My Fax Number: (408) 266-9751 My E-mail: vincstep@scvwd.dst.ca.us To Company or Agency Fax Number Suzanne Davis Town of Los Gatos, Planning Dept. (408) 354-7593 From: Vincent Stephens Total Pages, including cover sheet: 1 Subject: Housing Element Update Initial Study and Negative Declaration Message : the Santa Clara Valley Water District (District) has reviewed the subject notice and we have no specific comments on the negative declaration. However, the District would like to remind the Planning Department that development and redevelopment ofmulti-family or high density residential sites should incorporate non -point source water quality treatment measures into those parcels that are proposed for development. Post construction non point source treatment measures such as bio filters and vegetated swales can be used in landscaped or vegetated areas. In addition, should any identified N parcel be located adjacent to a creek, adequate set backs should be included in the site development plans to provide a buffer between the development and the waterway. If yo have any questions, or need further information, you can reach me at (408) 265-2607, extension 2439. Sic ly, Viri+bent Stephens to hens Associate Engineer Community Projects Review Unit Attachment 7 tleadyusarrerralMailing Address, 5750 Almaden Expressway, San Jose, CA 95118, (40$) 265-2600 STATE OF CALIFORNIA—BUSINESS. TRANSPORTATION AND HOUSING AGENCY GRAY DAVIS. Governor DEPARTMENT OF TRANSPORTATION P. 0. BOX 23660 OAKLAND, CA 94623-0660 (510) 286-4444 (510) 286-4454 TDD - /3 2002 TOWN OF LOS GATOS PLANNING DEPARTMENT November 4, 2002 Flex your power! Be energy efficient! SCL-General SCL000153 SCH 2002102052 Ms. Suzanne Davis Town of Los Gatos Community Development Department 110 East Main Street Los Gatos, CA 95030 Dear Ms. Davis: General Plan Housing Element Update — Initial Study/ Negative Declaration (ND) Thank you for including the California Department of Transportation (Department) in the environmental review process for the general plan update. We have examined the ND and have the following comments to submit: 1. Please submit future land use project's that generate 100 or more new peak hour trips to the Department for review to ensure that any significant traffic impacts to State facilities are mitigated. 2. Should there be a need to perform any work or traffic control within the State right-of-way (ROW) during construction of the proposed 125 housing units, an encroachment permit will be required. To apply, a completed encroachment permit application, environmental documentation, and five (5) sets of plans (in metric units), clearly indicating State ROW, need to be submitted to the following address: Mr. Sean Nozzari, District Office Chief Office of Permits California Department of Transportation, District 04 P. O. Box 23660 Oakland, Ca 94623-0660 "Caltrans improves mobility across California" Attachment 8 Ms. Suzanne Davis/ Town of Los GE November 4, 2002 Page 2 Should you require further information or have any questions regarding this letter, please call Maija Cottle, of my staff at (510) 286-5737. Sincerely, TIMOTHY C. SABLE District Branch Chief IGR/CEQA c: Gregoria Garcia (State Clearinghouse) "Caltrans improves mobility across California" Su3 vAx-rreii) rod -n-fE e� Cep {2. # 2 ¢761).S Ski b CArn-PSE Lk project mc— nil Senior Group Residence Program - affordable housing and supportive services - Introduction When Project Match was incorporated in 1977, the senior population of Santa Clara County was 95,000. By1999, the Santa Clara County population of people 60 years of age and older had more than tripled to 300,000 comprising 18% of a total county population of 1.7 million. This is the fastest growing age group in California today. If income is limited, as it is for over 60% of seniors living in Santa Clara County, even housing is threatened. In fact, 36% of seniors in the County have annual incomes below $30,000 a year. And as we grow into our elder years, we often face personal challenges: loss of loved ones, health issues, and the need for financial and community resources. In large part, due to economic burdens and social isolation, depression and suicide rates are highest among the senior population. Project Match was first in the nation to explore "home sharing," an innovative housing strategy for seniors with low incomes. We began by helping seniors who needed affordable housing to rent rooms from seniors who had homes to share and wanted the companionship and extra income generated by renting the room. Now, through the Senior Group Residence Program, Project Match develops existing single-family homes into efficient and cost effective affordable housing for seniors with low incomes. Most importantly the Senior Group Residence Program keeps seniors in a neighborhood setting, and reduces the loneliness and social isolation often felt by seniors who live alone. Affordable Housing for Seniors In the mid 1980s, Project Match began the Senior Group Residence Program by renting a six - bedroom house in San Jose, furnishing the common areas of the house, installing phone and cable, and renting rooms at affordable rates to seniors. Project Match's Senior Group Residence Program has proven effective in providing seniors not only affordable housing but also in promoting an environment of community with other seniors. Housemates become close friends, providing each other with invaluable support, companionship, and security in case of an emergency. Each senior has a private bedroom and shares the common areas of the home. Today we manage 37 units of affordable housing for seniors in San Jose, Santa Clara, Sunnyvale, Campbell, and Saratoga. The average age of current residents is 73 years; the average income is $1,200. Rent, including utilities, phone, and cable averages just $395 a month. Support Services for Residents Sharing a home with other seniors can be a wonderful experience. At the same time, we realize that there may be challenges to such an arrangement These challenges include interpersonal conflict, learning to share a home after decades of independence, dealing with the grief of losing loved ones, and having to leave a beloved home behind. Knowing that the Case Manager is available to help overcome such challenges can make a big difference in the well being of these seniors. Therefore, we offer on -going case management services to all residents in our homes. Case management services facilitate a positive living experience for the residents on three levels: First, the Case Manager gets to know each person individually, offers on -going needs assessment, monitors the resident's health, acquires needed services, and generally helps ease that person into a shared living arrangement through emotional support. Second, the Case Manager works with the group as a whole, providing conflict resolution, teaching socialization skills where necessary, and helping the residents create a warm and comfortable community of friends. Finally, the Case Manager serves as a liaison between the home and the community at - large. The goal is always to create a real home. This means that in addition to helping the residents feel comfortable together, the Case Manager strives to integrate the residents into the neighborhood. The Goal The goal of Project Match is to develop safe, affordable housing with supportive services that enhance the abilities of elders to live fully and well. Project Match, Inc. • 512 Valley Way, Milpitas CA 95035 • Phone 408-416-0271 Bob Campbell, Executive Director • Bob@projectmatch.org Capitol Funds Provided By: the City of Campbell, City of Santa Clara, City of Mountain View, City of Sunnyvale, County of Santa Clara and the Valley Foundation Services and Special Projects Funded By: AMD Corporation, the City of Saratoga, Farrington Foundation, Mission City Fund, Wells Fargo Bank and by individual donations. Project Match is a United Way Agency