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Item3.Staff Report with Attachments PREPARED BY: ERIN WALTERS AND JOCELYN SHOOPMAN Associate Planner and Associate Planner 110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832 www.losgatosca.gov MEETING DATE: 12/16/2021 ITEM NO: 3 TOWN OF LOS GATOS HOUSING ELEMENT ADVISORY BOARD REPORT DATE: December 10, 2021 TO: Housing Element Advisory Board FROM: Joel Paulson, Community Development Director SUBJECT: Review and Discuss Portions of the Draft Housing Element Appendices BACKGROUND: On October 21, 2021, the Housing Element Advisory Board (HEAB) held its first meeting and reviewed basic Housing Element requirements, the State’s review process, and the meeting schedule. Ande Flower with EMC Planning Group, Inc., the Town’s Consultant, presented an overview of the Housing Element update process. At the conclusion of the meeting, the HEAB requested additional resources to assist in preparing for the Housing Element update process which were provided by staff via email on October 25, 2021 (Attachment 1). DISCUSSION: The Town’s Consultant has prepared portions of the draft technical appendices to the Housing Element which present a detailed population and housing stock report designed to meet the legislative requirements of State housing laws (Attachment 3) and a review of the effectiveness of the fifth cycle Housing Element (Attachment 4). The draft appendices are being provided to the HEAB as contextual background information for future work that the HEAB is expected to begin in early 2022. Reviewing and understanding this information now will provide a basis for the next steps, which include the site inventory analysis to identify potential sites and analysis of the ability of those potential sites to accommodate the Town’s Regional Housing Needs Allocation (RHNA) numbers. State law requires that the Housing Element identify a list of housing sites that can accommodate the Town’s RHNA numbers. A draft list of all appendices is provided in the draft Housing Element outline (Attachment 2). Some items will be prepared later in the Housing Element process, as the HEAB completes additional analysis. PAGE 2 OF 2 SUBJECT: Second Meeting of the Housing Element Advisory Board December 10, 2021 N:\DEV\HEAB\2021\HEAB Staff Reports\2021\12-16-21\Item 3 - HE Appendices\Item3.Staff Report.docx PUBLIC COMMENTS: As of the drafting of this report, no comments from the public have been received. Attachments: 1. Additional Housing Element Update Process Information Provided to the HEAB 2. Draft Housing Element Outline 3. Draft Appendix 2 – Housing Needs Assessment 4. Draft Appendix 5 – Review of Previous Housing Element From: Erin Walters Sent: Monday, October 25, 2021 10:07 AM Cc: Joel Paulson <jpaulson@losgatosca.gov>; Laurel Prevetti <LPrevetti@losgatosca.gov>; Robert Schultz <RSchultz@losgatosca.gov>; Jennifer Armer <JArmer@losgatosca.gov>; Jocelyn Shoopman <jshoopman@losgatosca.gov>; Alexa Nolder <ANolder@losgatosca.gov> Subject: Housing Element Update Resources and Links Good Morning HEAB Members, Per your request, below is a list of resources and links that will assist you in preparing for the Housing Element update process. 2015-2023 Housing Element https://www.losgatosca.gov/DocumentCenter/View/14782/2015-2023-Adopted-Los-Gatos- Housing-Element-May-2015?bidId= 2015-2023 Housing Element, Technical Appendices https://www.losgatosca.gov/DocumentCenter/View/14791/2015-2023-Housing-Element- Appendices?bidId= Draft 2040 General Plan http://losgatos2040.com/ (click the Download the Full Draft General Plan button on the left- hand side of the website) ABAG Links • RHNA FAQs https://abag.ca.gov/sites/default/files/documents/2021-03/ABAG_2023- 2031_RHNA_FAQ_Feb2021.pdf • Draft RHNA Plan https://abag.ca.gov/sites/default/files/documents/2021-05/ABAG_2023- 2031_Draft_RHNA_Plan.pdf • RHNA Methodology Dec 2020 https://abag.ca.gov/sites/default/files/abag_draft_rhna_methodology_release_december2 020.pdf • Guide to Housing Element + AFFH Public Participation: https://abag.ca.gov/sites/default/files/documents/2021- 10/Housing%20Element%20Public%20Participation%20Letter_9.8.21.pdf • ABAG Missing Middle https://abag.ca.gov/technical-assistance/missing-middle-housing-webinars https://abag.ca.gov/tools-resources/digital-library/abagsession1whatismmhnon- proprietaryodipptx ATTACHMENT 1 HCD Links • Consequences of Non-Compliance with Housing Element Update https://abag.ca.gov/tools-resources/digital-library/consequences-non-compliance-housing- lawspdf • Sites Inventory https://www.hcd.ca.gov/community-development/housing-element/housing-element- memos/docs/sites_inventory_memo_final06102020.pdf • Guidance on Affirmatively Furthering Fair Housing (AFFH) https://www.hcd.ca.gov/community-development/affh/docs/affh_document_final_4-27- 2021.pdf • FAQs https://www.hcd.ca.gov/community-development/housing-element/housing-element- memos/docs/appen_d_qas093013.pdf • Examples of Other Jurisdictions ADU Programs, Policies, and Incentives https://experience.arcgis.com/experience/b52bcd2cd9734f02b1c0502bbbe5028d/page/pa ge_10/ • General Landing Page for Housing Elements https://www.hcd.ca.gov/community-development/housing-element/ • Full List of HCD Memos https://www.hcd.ca.gov/community-development/housing-element/housing-element- memos.shtml If you have any difficulties accessing these links, please do not hesitate to reach out to myself or Jocelyn Shoopman (cc’d in this email). Sincerely, Erin Walters ● Associate Planner Community Development Department ● 110 E. Main Street, Los Gatos CA 95030 Ph: 408.354.6867 ● 408-354-6872 www.losgatosca.gov ● ewalters@losgatosca.gov COMMUNITY DEVELOPMENT HOURS: Counter Hours: 8:00 AM – 1:00 PM, Monday – Friday Phone Hours: 8:00 AM – 5:00 PM, Monday – Friday Housing Element Outline December 2021 Draft 2023-2031 Housing Element 10-1 Acknowledgements Introduction “Housing Crisis” Statement Focus on Housing Equity/Fair Housing Overview of Planning Efforts Summary of Previous Housing Element Effectiveness New State Laws Affecting Housing Consistency with the General Plan Public Participation Highlights of Housing Needs Assessment, with Focus on Equity Population, Employment, and Household Characteristics and Demographics Housing Stock Characteristics Special Housing Needs Regional Housing Needs Allocation (RHNA) Housing Resources and Opportunities Sites Summary Highlights of Housing Constraints Energy Conservation Goals, Policies, Programs, and Quantified Objectives Appendices 1.Affirmatively Furthering Fair Housing (AFFH) Report from Santa Clara County 2.Housing Needs Assessment 3.Projected Housing Needs 4.Government and Non-Government Constraints 5.Review of Previous Housing Element 6.Vacant and Available Sites List of Contacted Organizations ATTACHMENT 2 This Page Intentionally Left Blank Appendix 2 Appendix 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-1 TABLE OF CONTENTS Appendix 2 Housing Needs Assessment 2.1 Introduction ...................................................................................................................................... 3 2.2 Population, Employment, and Household Characteristics .............................................................. 5 2.3 Housing Stock Characteristics………………………………………………………………………….. 24 2.4 Special Housing Needs .............................................................................................................. …41 Figures Figure 2-1 Population Growth Trends ..................................................................................................... 6 Figure 2-2 Population by Age, 2000-2019 .............................................................................................. 7 Figure 2-3 Population Age by Race ........................................................................................................ 8 Figure 2-4 Population by Race, 2000-2019 ............................................................................................ 9 Figure 2-5 Jobs in a Jurisdiction ........................................................................................................... 10 Figure 2-6 Workers by Earnings, by Jurisdiction as Place of Work and Place of Residence ............... 11 Figure 2-7 Jobs-Worker Ratios, by Wage Group .................................................................................. 12 Figure 2-8 Jobs-Household Ratio ......................................................................................................... 13 Figure 2-9 Resident Employment by Industry ....................................................................................... 14 Figure 2-10 Unemployment Rate ............................................................................................................ 15 Figure 2-11 Households by Household Income Level ............................................................................ 16 Figure 2-12 Household Income Level by Tenure .................................................................................... 17 Figure 2-13 Poverty Status by Race ....................................................................................................... 18 Figure 2-14 Housing Tenure ................................................................................................................... 19 Figure 2-15 Housing Tenure by Race of Householder ........................................................................... 20 Figure 2-16 Housing Tenure by Age ....................................................................................................... 21 Figure 2-17 Housing Tenure by Housing Type ....................................................................................... 22 Figure 2-18 Households by Displacement Risk and Tenure ................................................................... 23 Figure 2-19 Housing Type Trends .......................................................................................................... 24 Figure 2-20 Housing Units by Year Structure Built ................................................................................. 25 Figure 2-21 Vacant Units by Type ........................................................................................................... 26 Figure 2-22 Substandard Housing Issues ............................................................................................... 29 Figure 2-23 Home Values of Owner-Occupied Units .............................................................................. 30 Figure 2-24 Zillow Home Value Index (ZHVI) ......................................................................................... 31 Figure 2-25 Contract Rents for Renter-Occupied Units .......................................................................... 32 Figure 2-26 Median Contract Rent .......................................................................................................... 33 ATTACHMENT 3 Draft 2023-2031 Housing Element 2-2 Draft 2023-2031 Housing Element December 2021 Figure 2-27 Cost Burden by Tenure, Los Gatos ..................................................................................... 34 Figure 2-28 Cost Burden by Income Level, Los Gatos ........................................................................... 35 Figure 2-29 Cost Burden by Race, Los Gatos ........................................................................................ 36 Figure 2-30 Cost Burden by Household Size, Los Gatos ....................................................................... 37 Figure 2-31 Cost-Burdened Senior Households by Income Level, Los Gatos ....................................... 38 Figure 2-32 Overcrowding by Tenure and Severity ................................................................................ 39 Figure 2-33 Overcrowding by Income Level and Severity ...................................................................... 40 Figure 2-34 Overcrowding by Race ........................................................................................................ 41 Figure 2-35 Household Size by Tenure .................................................................................................. 42 Figure 2-36 Housing Units by Number of Bedrooms .............................................................................. 43 Figure 2-37 Household Type ................................................................................................................... 44 Figure 2-38 Female-Headed Households by Poverty Status .................................................................. 45 Figure 2-39 Senior Households by Income and Tenure ......................................................................... 46 Figure 2-40 Disability by Type ................................................................................................................. 47 Figure 2-41 Homelessness by Household Type and Shelter Status, Santa Clara County ..................... 49 Figure 2-42 Racial Group Share of General and Homeless Populations, Santa Clara County .............. 50 Figure 2-43 Latinx Share of General and Homeless Populations, Santa Clara County ......................... 51 Figure 2-44 Characteristics for the Population Experiencing Homelessness, Santa Clara County ....... 52 Figure 2-45 Farm Operations and Farm Labor, Santa Clara County ...................................................... 54 Figure 2-46 Population with Limited English Proficiency ........................................................................ 55 Tables Table 2-1 Population Growth Trends ..................................................................................................... 5 Table 2-2 Housing Permits by Income Group, 2015 to 2020 ............................................................... 27 Table 2-3 Assisted Units at Potential Risk of Conversion .................................................................... 28 Table 2-4 Population with Developmental Disabilities by Age ............................................................. 48 Table 2-5 Population with Developmental Disabilities by Residence .................................................. 48 Table 2-6 Students in Local Public Schools Experiencing Homelessness .......................................... 53 Table 2-7 Migrant Worker Student Population ..................................................................................... 54 Table 2-8 Homeless Facilities Near Los Gatos .................................................................................... 56 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-3 Appendix 2 Housing Needs Assessment 2.1 Introduction This appendix of the Housing Element describes existing housing needs and conditions in the Town of Los Gatos. The analysis in this section primarily utilizes data compiled by Association of Bay Area Governments / Metropolitan Transportation Commission (ABAG/MTC) in the “Housing Needs Data Report: Los Gatos” (ABAG/MTC, Baird + Driskell Community Planning, April 2, 2021). This data packet was approved by the California Department of Housing and Community Development (HCD). Overview of Bay Area Housing The Bay Area continues to see growth in both population and jobs, which means more housing of various types and sizes is needed to ensure that residents across all income levels, ages, and abilities have a place to call home. While the number of people drawn to the region over the past 30 years has steadily increased, housing production has stalled, contributing to the housing shortage that communities are experiencing today. In many towns and cities, this has resulted in residents being priced out, increased traffic congestion caused by longer commutes, and fewer people across incomes being able to purchase homes or meet surging rents. The 2023-2031 Housing Element update provides a roadmap for how to meet growth and housing challenges. As required by the State, the Housing Element identifies what the existing housing conditions and community needs are, reiterates goals, and creates a plan for more housing. The Housing Element is an integral part of the General Plan, which guides the policies of the Town of Los Gatos. Summary of Key Facts ▪ Population – Generally, the population of the Bay Area continues to grow because of new births and the strong economy draws new residents to the region. The population of the Town of Los Gatos increased by 10 percent from 2000 to 2020, which is below the growth rate of the Bay Area. ▪ Age – In 2019, the Town of Los Gatos’s youth population, under the age of 18, was 6,767 and the senior population, 65 and older, was 6,393. These age groups represent 22.0 percent and 20.8 percent, respectively, of the Town of Los Gatos population. ▪ Race/Ethnicity – In 2020, 72.3 percent of the Town of Los Gatos population was White, while 0.9 percent was African American, 14.8 percent was Asian, and 7.9 percent was Latinx. People of color in Los Gatos comprise a proportion below the overall proportion in the Bay Area as a whole.1 ▪ Employment – The Town of Los Gatos residents most commonly work in the Financial and Professional Services industry. From January 2010 to January 2021, the unemployment rate in the Town of Los Gatos decreased by 2.9 percent. Since 2010, the number of jobs located in the jurisdiction increased by 4,440 (28.8 percent). Additionally, the jobs-household ratio in the Town of Los Gatos has increased from 1.32 jobs per household in 2002 to 1.59 in 2018. 1 The Census Bureau’s American Community Survey accounts for ethnic origin separate from racial identity. The numbers reported here use an accounting of both such that the racial categories are shown exclusive of Latinx status, to allow for an accounting of the Latinx population regardless of racial identity. The term Hispanic has historically been used to describe people from numerous Central American, South American, and Caribbean countries. In recent years, the term Latino or Latinx has become preferred. This report generally uses Latinx, but occasionally when discussing US Census data, we use Hispanic or Non-Hispanic, to clearly link to the data source. Draft 2023-2031 Housing Element 2-4 Draft 2023-2031 Housing Element December 2021 ▪ Number of Homes – The number of new homes built in the Bay Area has not kept pace with the demand, resulting in longer commutes, increasing prices, and exacerbating issues of displacement and homelessness. The number of homes in the Town of Los Gatos increased 4.5 percent from 2010 to 2020, which is below the growth rate for Santa Clara County and below the growth rate of the region’s housing stock during this time period.2 ▪ Home Prices – A diversity of homes at all income levels creates opportunities for all Los Gatos residents to live and thrive in the community. Ownership – The largest proportion of homes had a value in the range of $2M+ in 2019. Home prices increased by 98.4 percent from 2010 to 2020. Rental Prices – The typical contract rent for an apartment in the Town of Los Gatos was $2,270 in 2019. Rental prices increased by 60.9 percent from 2009 to 2019. To rent a typical apartment without cost burden, a household would need to make $90,960 per year. 3 ▪ Housing Type – It is important to have a variety of housing types to meet the needs of a community today and in the future. In 2020, 59.6 percent of homes in the Town of Los Gatos were single -family detached, 13.0 percent were single-family attached, 9.0 percent were small multi-family (2-4 units), and 17.9 percent were medium or large multi-family (5+ units). Between 2010 and 2020, the number of single-family units increased more than multi-family units. Generally, in the Town of Los Gatos, the share of the housing stock that is detached single-family homes is above that of other jurisdictions in the region. ▪ Cost Burden – The U.S. Department of Housing and Urban Development considers housing to be affordable for a household if the household spends less than 30 percent of its income on housing costs. A household is considered “cost-burdened” if it spends more than 30 percent of its monthly income on housing costs, while those who spend more than 50 percent of their income on housing costs are considered “severely cost-burdened.” In the Town of Los Gatos, 19.8 percent of households spend 30 percent to 50 percent of their income on housing, while 16.2 percent of households are severely cost burdened and use the majority of their income for housing. ▪ Displacement/Gentrification – According to research from the University of California, Berkeley, no households in the Town of Los Gatos live in neighborhoods that are susceptible to or experiencing displacement, and none live in areas at risk of or undergoing gentrification. All households in the Town of Los Gatos live in neighborhoods where low-income households are likely excluded due to prohibitive housing costs. There are various ways to address displacement including planning for new housing at all income levels. ▪ Neighborhood – All residents in the Town of Los Gatos live in neighborhoods identified as “Highest Resource” or “High Resource” areas by State-commissioned research, while no residents live in areas identified by this research as “Low Resource” or “High Segregation an d Poverty” areas. These neighborhood designations are based on a range of indicators covering areas such as education, poverty, proximity to jobs and economic opportunities, low pollution levels, and other factors.4 ▪ Special Housing Needs – Some population groups may have special housing needs that require specific program responses, and these groups may experience barriers to accessing stable housing due to their 2 According to HCD Annual Progress Report Dashboard (as of September 20, 2021). 3 Note that contract rents may differ significantly from, and often being lower than, current listing prices. 4 For more information on the “opportunity area” categories developed by HCD and the California Tax Credit Allocation Committee, see this website: https://www.treasurer.ca.gov/ctcac/opportunity.asp. The degree to which different jurisdictions and neighborhoods have access to opportunity will likely need to be analyzed as part of new Housing Element requirements related to affirmatively furthering fair housing. ABAG/MTC will be providing jurisdictions with technical assistance on this topic this summer, following the release of additional guidance from HCD. 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-5 specific housing circumstances. In the Town of Los Gatos, 9.3 percent of residents have a di sability of some kind (physical, developmental, etc.), and may require accessible housing. Additionally, 5.9 percent of the Town of Los Gatos households are larger households with five or more people, who likely need larger housing units with three bedrooms or more. 8.2 percent of households are female-headed families, which are often at greater risk of housing insecurity. 2.2 Population, Employment, and Household Characteristics Population The Bay Area is the fifth-largest metropolitan area in the nation and has seen a steady increase in population since 1990, except for a dip during the Great Recession. Many towns and cities in the region have experienced significant growth in jobs and population. While these trends have led to a corresponding increase in demand for housing across the region, the regional production of housing has largely not kept pace with job and population growth. According to the data, the population of the Town of Los Gatos was estimated to be 31,439 in 2020. The population of the Town of Los Gatos makes up 1.6 percent of Santa Clara County.5 In the Town of Los Gatos, roughly 13.5 percent of its population moved during the past year, a number that is roughly the same as the regional rate of 13.4 percent. Table 2-1 shows population growth trends for the Town of Los Gatos, Santa Clara County, and the Bay Area as a whole. Table 2-1 Population Growth Trends Geography 1990 1995 2000 2005 2010 2015 2020 Town of Los Gatos 27,357 28,751 28,592 28,872 29,413 30,807 31,439 Santa Clara Co. 1,497,577 1,594,818 1,682,585 1,752,696 1,781,642 1,912,180 1,961,969 Bay Area 6,020,147 6,381,961 6,784,348 7,073,912 7,150,739 7,595,694 7,790,537 SOURCE: California Department of Finance, E-5 series. NOTE: Universe: Total population; Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP -01. Since 2000, the Town of Los Gatos population has increased by approximately 10 percent, which is below the rate for the region as a whole, at 14.8 percent. From 1990 to 2000, the population increased by 4.5 percent. During the first decade of the 2000s the population increased by 2.9 percent. In the most recent decade, the population increased by 6.9 percent. Figure 2-1 shows population growth trends in percentages. In 2019 the Town of Los Gatos annexed 24 urban islands totaling 116.1 acres. The islands were comprised of approximately 308 single-family residences and the staff report assumed 2.2 persons per household for an estimated increase in population of 678. 5 To compare the rate of growth across various geographic scales, Figure 2-1 shows population for the jurisdiction, county, and region indexed to the population in the year 1990. This means that the data points represent the population growth (i.e., percent change) in each of these geographies relative to their populations in 1990. Draft 2023-2031 Housing Element 2-6 Draft 2023-2031 Housing Element December 2021 Figure 2-1 Population Growth Trends Source: California Department of Finance, E-5 series. Note: The data shown on the graph represents population for the jurisdiction, county, and region indexed to the population in the first year shown. The data points represent the relative population growth in each of these geographies relative to their populatio ns in that year. For some jurisdictions, a break may appear at the end of each decade (1999, 2009) as estimates are compared to census counts. DOF uses the decennial census to benchmark subsequent population estimates. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-01 Age The distribution of age groups in a community shapes what types of housing the community may need in the near future. An increase in the older population may mean there is a developing need for more senior housing options, while higher numbers of children and young families can point to the need for more family housing options and related services. There has also been a move by many to age-in-place or downsize to stay within their communities, which can mean more multi-family and accessible units are also needed. In the Town of Los Gatos, the median age in 2000 was approximately 41 years. By 2019, the median age increased to approximately 47 years. The cohorts age 25-34 and age 35-44 decreased between 2000 and 2019, while all age cohorts 55 and above increased during the same time period. Figure 2-2 shows population by age for the years 2000, 2010, and 2019 for the Town of Los Gatos. 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-7 Figure 2-2 Los Gatos Population by Age, 2000-2019 Source: U.S. Census Bureau, Census 2000 SF1, Table P12; U.S. Census Bureau, Census 2010 SF1, Table P12; U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B01001. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP- 04. Note: Universe: Total population. Looking at the senior and youth population by race can add an additional l ayer of understanding, as families and seniors of color are even more likely to experience challenges finding affordable housing. People of color6 make up 13.4 percent of seniors and 23.7 percent of youth under 18. Figure 2-3 shows population age by race for the Town of Los Gatos. 6 Here, all non-white racial groups are counted. Draft 2023-2031 Housing Element 2-8 Draft 2023-2031 Housing Element December 2021 Figure 2-3 Los Gatos Population Age by Race Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B01001(A-G). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table SEN-02. Notes: Universe: Total population. In the sources for this table, the Census Bureau does not disaggregate racial groups by Hispanic/Latinx ethnicity, and an overlapping category of Hispanic / non-Hispanic groups has not been shown to avoid double counting in the stacked bar chart. Race and Ethnicity Understanding the racial makeup of the Town and region is important for designing and implementing effective housing policies and programs. These patterns are shaped by both market factors and government actions, such as exclusionary zoning, discriminatory lending practices , and displacement that has occurred over time and continues to impact communities of color today.7 Since 2000, the percentage of residents in the Town of Los Gatos identifying as White, Non-Hispanic has decreased by 13.3 percentage points, with this 2019 population standing at 22,231. At the same time the percentage of residents of all Other Race of Multiple Races, Non-Hispanic has increased. In absolute terms, the Asian/API, Non-Hispanic population increased the most while the White, Non-Hispanic population decreased the most. Figure 2-4 shows population for the Town of Los Gatos by race for 2000, 2010, and 2019. 7 See, for example, Rothstein, R. (2017). The color of law: a forgotten history of how our government segregated America. New York, NY & London, UK: Liveright Publishing. 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-9 Figure 2-4 Los Gatos Population by Race, 2000-2019 Source: U.S. Census Bureau, Census 2000, Table P004; U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B03002. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-02. Notes: Universe: Total population. Data for 2019 represents 2015-2019 ACS estimates. The Census Bureau defines Hispanic/Latinx ethnicity separate from racial categories. For the purposes of this graph, the “Hispanic or Latinx” racial/ethnic group represents those who identify as having Hispanic/Latinx ethnicity and may also be members of any racial group. All other racial categories on this graph represent those who identify with that racial category and do not identify with Hispanic/Latinx ethnicity. Employment Trends Balance of Jobs and Workers A town or city houses employed residents who either work in the community where they live or work elsewhere in the region. Conversely, a town or city may have job sites that employ residents from the same town or city, but more often employ workers commuting from outside of it. Smaller towns and cities typically will have more employed residents than jobs and export workers, while larger towns and cities tend to have a surplus of jobs and import workers. To some extent the regional transportation system is set up for this flow of workers to the region’s core job centers. At the same time, as the housing affordability crisis has illustrated, local imbalances may be severe, where local jobs and worker populations are out of sync at a sub-regional scale. One measure of this is the relationship between workers and jobs. A town or city with a surplus of workers “exports” workers to other parts of the region, while a town or city with a surplus of jobs must conversely “import” them. Between 2002 and 2018, the number of jobs in the Town of Los Gatos increased by 23.8 percent. Figure 3-5 shows jobs in the Town of Los Gatos between 2002 and 2018. Draft 2023-2031 Housing Element 2-10 Draft 2023-2031 Housing Element December 2021 Figure 2-5 Los Gatos Jobs in a Jurisdiction Source: U.S. Census Bureau, Longitudinal Employer-Household Dynamics, Workplace Area Characteristics (WAC) files, 2002-2018. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-11. Notes: Universe: Jobs from unemployment insurance-covered employment (private, state and local government) plus United States Office of Personnel Management-sourced Federal employment. The data is tabulated by place of work, regardless of where a worker lives. The source data is provided at the census block level. These are cross walked to jurisdictions and summarized. The figure below shows the balance when comparing jobs to workers, broken down by different wage groups, offering additional insight into local dynamics. A community may offer employment for relatively low-income workers, but have relatively few housing options for those workers . Conversely, it may house residents who are low-wage workers, but offer few employment opportunities for them. Such relationships may cast extra light on potentially pent-up demand for housing in particular price categories. A relative surplus of jobs relative to residents in a given wage category suggests the need to import those workers, while conversely, surpluses of workers mean the community will export those workers to other jurisdictions. Such flows are not inherently bad, though over time, sub-regional imbalances may appear. The Town of Los Gatos has more jobs than residents in wage categories below $75,000 per year. At the high end of the wage spectrum (i.e., wages over $75,000 per year), the Town has more high-wage residents than high-wage jobs.8 Figure 2-6 shows workers by earnings, place of residence, and place of work within the jurisdiction of the Town of Los Gatos. 8 The source table is top coded at $75,000, precluding more fine-grained analysis at the higher end of the wage spectrum. 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-11 Figure 2-6 Workers by Earnings, by Los Gatos Jurisdiction as Place of Work and Place of Residence Source: U.S. Census Bureau, American Community Survey 5-Year Data 2015-2019, B08119, B08519. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-10. Notes: Universe: Los Gatos Workers 16 years and over with earnings. The next diagram shows the ratio of jobs to workers, by wage group. A value of 1.00 means that the Town has the same number of jobs in a wage group as it has resident workers, in principle, a balance. Values above 1.00 indicate a jurisdiction will need to import workers for jobs in a given wage group. Figure 2-7 shows jobs to worker ratios for the Town Los Gatos. Draft 2023-2031 Housing Element 2-12 Draft 2023-2031 Housing Element December 2021 Figure 2-7 Los Gatos Jobs-Worker Ratios, By Wage Group Source: U.S. Census Bureau, Longitudinal Employer-Household Dynamics, Workplace Area Characteristics (WAC) files (Jobs); Residence Area Characteristics (RAC) files (Employed Residents), 2010-2018. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-14. Notes: Universe: Jobs in a jurisdiction from unemployment insurance-covered employment (private, state and local government) plus United States Office of Personnel Management-sourced Federal employment. The ratio compares job counts by wage group from two tabulations of LEHD data: Counts by place of work relative to counts by place of residence. See text for details. Such balances between jobs and workers may directly influence the housing demand in a community. New jobs may draw new residents, and when there is high demand for housing relative to supply, many workers may be unable to afford to live where they work, particularly where job growth has been in relatively lower wage jobs. This dynamic not only means many workers will need to prepare for long commutes and time spent on the road, but in the aggregate, it contributes to traffic congestion and time lost for all road users. If there are more jobs than employed residents, it means a community is relatively jobs-rich, typically also with a high jobs per employed resident ratio. Thus, bringing housing into the measure, the jobs per employed resident ratio in the Town of Los Gatos has increased from 1.32 in 2002, to 1.59 jobs per employed resident in 2018. In short, the Town of Los Gatos is a net importer of workers. Figure 2-8 shows the Town of Los Gatos jobs per employed resident ratio. 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-13 Figure 2-8 Jobs per Employed Resident Ratio for the Bay Area, Santa Clara County, and Los Gatos Source: U.S. Census Bureau, Longitudinal Employer-Household Dynamics, Workplace Area Characteristics (WAC) files (Jobs), 2002-2018; California Department of Finance, E-5 (Households). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-13. Notes: Universe: Jobs in a jurisdiction from unemployment insurance-covered employment (private, state and local government) plus United States Office of Personnel Management-sourced Federal employment; households in a jurisdiction. The data is tabulated by place of work, regardless of where a worker lives. The source data is provided at the census block level. These are cross walked to jurisdictions and summarized. The ratio compares place of work wage and salary jobs with households, or occupied housing units. A similar measure is the ratio of jobs to housing units. However, this jobs-household ratio serves to compare the number of jobs in a jurisdiction to the number of housing units that are actually occupied. The difference between a jurisdiction’s jobs-housing ratio and jobs-household ratio will be most pronounced in jurisdictions with high vacancy rates, a high rate of units used for seasonal use, or a high rate of units used as short-term rentals. Sector Composition In terms of sectoral composition, the largest industry in which the Town of Los Gatos residents work is Financial and Professional Services, and the largest sector in which Santa Clara residents work is Health and Educational Services. For the Bay Area as a whole, the Health and Educational Services industry employs the most workers. Figure 2-9 shows resident employment by industry. Draft 2023-2031 Housing Element 2-14 Draft 2023-2031 Housing Element December 2021 Figure 2-9 Resident Employment by Industry Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table C24030. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-06. Notes: Universe: Civilian employed population age 16 years and over. The data displayed shows the industries in which jurisdiction residents work, regardless of the location where those residents are employed (whether within the jurisdiction or not). Categories are derived from the following source tables: Agriculture & Natural Resources: C24030_003E, C24030_030E; Construction: C24030_006E, C24030_033E; Manufacturing, Wholesale & Transportation: C24030_007E, C24030_034E, C24030_008E, C24030_035E, C24030_010E, C24030_037E; Retail: C24030_009E, C24030_036E; Information: C24030_013E, C24030_040E; Financial & Professional Services: C24030_014E, C24030_041E, C24030_017E, C24030_044E; Health & Educational Services: C24030_021E, C24030_024E, C24030_048E, C24030_051E; Other: C24030_027E, C24030_054E, C24030_028E, C24030_055E. Unemployment In the Town of Los Gatos, there was a 2.9 percentage point decrease in the unemployment rate between January 2010 and January 2021. Jurisdictions throughout the region experienced a sharp rise in unemployment in 2020 due to impacts related to the COVID-19 pandemic, though with a general improvement and recovery in the later months of 2020. Figure 2-10 shows the unemployment rates over the last decade for the Town of Los Gatos, Santa Clara County, and the Bay Area as a whole. 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-15 Figure 2-10 Los Gatos Unemployment Rate Source: California Employment Development Department, Local Area Unemployment Statistics (LAUS), Sub-county areas monthly updates, 2010-2021. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-15. Notes: Universe: Civilian noninstitutional population ages 16 and older. Unemployment rates for the jurisdiction level is derived from larger-geography estimates. This method assumes that the rates of change in employment and unemployment are exactly the same in each sub-county area as at the county level. If this assumption is not true for a specific sub-county area, then the estimates for that area may not be representative of the current economic conditions. Since this assumption is untested, caution should be employed when using these data. Only not seasonally-adjusted labor force (unemployment rates) data are developed for cities and CDPs. Extremely Low-Income Households Despite the economic and job growth experienced throughout the region since 1990, the income gap has continued to widen. California is one of the most economically unequal states in the nation, and the Bay Area has the highest income inequality between high- and low-income households in the state.9 In the Town of Los Gatos, 65 percent of households make more than 100 percent of the Area Median Income (AMI)10, compared to 8.6 percent making less than 30 percent of AMI, which is considered extremely low-income. Regionally, more than half of all households make more than 100 percent AMI, while 15 percent make less than 30 percent AMI. In Santa Clara County, 30 percent AMI is the equivalent to the annual income of $39,900 for a family of four. Many households with multiple wage earners, including food service workers, full-time students, teachers, farmworkers, and healthcare professionals, can fall into lower AMI categories due to relatively stagnant wages in many industries. Figure 2-11 shows households by income level. 9 Bohn, S.et al. 2020. Income Inequality and Economic Opportunity in California. Public Policy Institute of California. 10 Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), S1anta Rosa Metro Draft 2023-2031 Housing Element 2-16 Draft 2023-2031 Housing Element December 2021 Figure 2-11 Households by Household Income Level Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table ELI-01. Notes: Universe: Occupied housing units. Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located. The data that is reported for the Bay Area is not based on a regional AMI but instead refers to the regional total of households in an income group relative to the AMI for the county where that household is located. Local jurisdictions are required to provide an estimate for their projected extremely low-income households (0-30 percent AMI) in their Housing Elements. HCD’s official Housing Element guidance notes that jurisdictions can use their RHNA for very low-income households (those making 0-50 percent AMI) to calculate their projected extremely low-income households. As Bay Area jurisdictions have not yet received their final RHNA numbers, this document does not contain the required data point of projected extremely low -income households. The report portion of the housing data needs packet contains more specific guidance for how local staff can calculate an estimate for projected extremely low -income households once jurisdictions receive their 6th cycle RHNA numbers. AMI levels in this chart are based on the HUD metro area where this jurisdiction is located. Households making between 80 and 120 percent of the AMI are moderate-income, those making 50 to 80 percent are low income, those making 30 to 50 percent are very low-income, and those making less than 30 percent are extremely low-income. This is then adjusted for household size. Throughout the region, there are disparities between the incomes of homeowners and renters. Typically, the number of low-income renters greatly outpaces the amount of housing available that is affordable for these households. In the Town of Los Gatos, the largest proportion of renters falls in the Greater than 100 percent of AMI group, while the largest proportion of homeowners are found in the Greater than 100 percent of AMI group. Figure 2-12 shows household income by tenure. 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-17 Figure 2-12 Los Gatos Household Income Level by Tenure Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-21. Notes: Universe: Occupied housing units. Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located. Currently, people of color are more likely to experience poverty and financial instability as a result of Federal, State, and local housing policies that have historically excluded them from the same opportunities extended to white residents.11 These economic disparities also leave communities of color at higher risk for housing insecurity, displacement, or homelessness. In the Town of Los Gatos, Hispanic or Latinx and Other Race or Multiple Races (Hispanic and Non-Hispanic) residents experience the highest rates of poverty, followed by White (Hispanic and Non-Hispanic) residents. Figure 2-13 shows poverty status by race. 11 Moore, E., Montojo, N. and Mauri, N., 2019. Roots, Race & Place: A History of Racially Exclusionary Housing the San Francisco Bay Area. Hass Institute. Draft 2023-2031 Housing Element 2-18 Draft 2023-2031 Housing Element December 2021 Figure 2-13 Los Gatos Poverty Status by Race Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B17001(A-I). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table ELI-03. Notes: Universe: Population for whom poverty status is determined. The Census Bureau uses a federally defined poverty threshold that remains constant throughout the country and does not correspond to Area Median Income. For this table, the Census Bureau does not disaggregate racial groups by Hispanic/Latinx ethnicity. However, data for the white racial group is also reported for white householders who are not Hispanic/Latinx. Since residents who identify as white and Hispanic/Latinx may have very different experiences within the housing market and the economy from those who identify as white and non-Hispanic/Latinx, data for multiple white sub-groups are reported here. The racial/ethnic groups reported in this table are not all mutually exclusive. Therefore, the data should not be summed as the sum exceeds the population for whom poverty status is determined for this jurisdiction. However, all groups labelled “Hispanic and Non-Hispanic” are mutually exclusive, and the sum of the data for these groups is equivalent to the population for whom poverty status is determined. Tenure The number of residents who own their homes compared to those who rent their homes can help identify the level of housing insecurity (i.e., ability for individuals to stay in their homes ) in a town or city and region. Generally, renters may be displaced more quickly if prices increase. In the Town of Los Gatos as of 2019, there are a total of 12,083 housing units, and fewer residents rent than own their homes: 35.1 percent versus 64.9 percent. By comparison, 43.6 percent of households in Santa Clara County are renters, while 43.9 percent of Bay Area households rent their homes. Figure 2-14 shows housing tenure for Los Gatos, Santa Clara County, and the Bay Area as a whole. 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-19 Figure 2-14 Housing Tenure Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25003. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-16. Notes: Universe: Occupied housing units. Homeownership rates often vary considerably across race/ethnicity in the Bay Area and throughout the country. These disparities not only reflect differences in income and wealth, but also stem from Federal, State, and local policies that limited access to homeownership for communities of color while facilitating homebuying for white residents. While many of these policies, such as redlining, have been formally disbanded, the impacts of race - based policy are still evident across Bay Area communities.12 In the Town of Los Gatos, 83.8 percent of Black households owned their homes, while homeownership rates were 72.3 percent for Asian households, 38.6 percent for Latinx households, and 64.6 percent for White households. Notably, recent changes to State law require local jurisdictions to examine these dynamics and other fair housing issues when updating their Housing Elements. Figure 2-15 shows housing tenure by the race of the householder. 12 See, for example, Rothstein, R. (2017). The color of law: a forgotten history of how our government segregated America. New York, NY & London, UK: Liveright Publishing. Draft 2023-2031 Housing Element 2-20 Draft 2023-2031 Housing Element December 2021 Figure 2-15 Los Gatos Housing Tenure by Race of Householder Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25003(A-I). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-20. Notes: Universe: Occupied housing units. For this table, the Census Bureau does not disaggregate racial groups by Hispanic/Latinx ethnicity. However, data for the white racial group is also reported for white householders who are not Hispanic/Latinx. Since residents who identify as white and Hispanic/Latinx may have very different experiences within the housing market and the economy from those who identify as white and non-Hispanic/Latinx, data for multiple white sub-groups are reported here. The racial/ethnic groups reported in this table are not all mutually exclusive. Therefore, the data should not be summed as the sum exceeds the total number of occupied housing units for this jurisdiction. However, all groups labelled “Hispanic and Non-Hispanic” are mutually exclusive, and the sum of the data for these groups is equivalent to the total number of occupied housing units. The age of residents who rent or own their home can also signal the housing challenges a community is experiencing. Younger households tend to rent and may struggle to buy a first home in the Bay Area due to high housing costs. At the same time, senior homeowners seeking to downsize may have limited options in an expensive housing market. In the Town of Los Gatos, 77.2 percent of householders between the ages of 25 and 34 are renters, and 36.4 percent of householders over 85 are renters. Figure 2-16 shows housing tenure by age. 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-21 Figure 2-16 Los Gatos Housing Tenure by Age Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25007. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-18. Notes: Universe: Occupied housing units. In many towns and cities, homeownership rates for households in single-family homes are substantially higher than the rates for households in multi-family housing. In the Town of Los Gatos, 86.2 percent of households in detached single-family homes are homeowners, while 13.2 percent of households in multi-family housing are homeowners. Figure 2-17 shows housing tenure by housing type. Draft 2023-2031 Housing Element 2-22 Draft 2023-2031 Housing Element December 2021 Figure 2-17 Los Gatos Housing Tenure by Housing Type Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25032. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-22. Notes: Universe: Occupied housing units. Displacement Because of increasing housing prices, displacement is a major concern in the Bay Ar ea. Displacement has the most severe impacts on low- and moderate-income residents. When individuals or families are forced to leave their homes and communities, they also lose their support network. The University of California, Berkeley, has mapped all neighborhoods in the Bay Area, identifying their risk for gentrification. They find that in the Town of Los Gatos, there are no households that live in neighborhoods that are susceptible to or experiencing displacement and none live in neighborhoods at risk of or undergoing gentrification. Equally important, some neighborhoods in the Bay Area do not have housing appropriate for a broad section of the workforce. The University of California, Berkeley, estimates that all households in the Town of Los Gatos live in neighborhoods where low-income households are likely to be excluded due to prohibitive housing costs.13 Figure 2-18 shows household displacement risk and tenure. 13 More information about this gentrification and displacement data is available at the Urban Displacement Project’s webpage: https://www.urbandisplacement.org/. Specifically, one can learn more about the different gentrification/displacement typologies shown in Figure 18 at this link: https://www.urbandisplacement.org/sites/default/files/typology_sheet_2018_0.png. Additionally, one can view maps that show which typologies correspond to which parts of a jurisdiction here: https://www.urbandisplacement.org/san-francisco/sf-bay-area-gentrification-and- displacement 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-23 Figure 2-18 Los Gatos Households by Displacement Risk and Tenure Source: Urban Displacement Project for classification, American Community Survey 5-Year Data (2015-2019), Table B25003 for tenure. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-25. Notes: Universe: Households. Displacement data is available at the census tract level. Staff aggregated tracts up to jurisdiction level using census 2010 population weights, assigning a tract to jurisdiction in proportion to block level population weights. Total household count may differ slightly from counts in other tables sourced from jurisdiction level sources. Categories are combined as follows for simplicity: At risk of or Experiencing Exclusion: At Risk of Becoming Exclusive; Becoming Exclusive; Stable/Advanced Exclusive At risk of or Experiencing Gentrification: At Risk of Gentrification; Early/Ongoing Gentrification; Advanced Gentrification Stable Moderate/Mixed Income: Stable Moderate/Mixed Income Susceptible to or Experiencing Displacement: Low-Income/Susceptible to Displacement; Ongoing Displacement Other: High Student Population; Unavailable or Unreliable Data. Draft 2023-2031 Housing Element 2-24 Draft 2023-2031 Housing Element December 2021 2.3 Housing Stock Characteristics Housing Types, Year Built, Vacancy, and Permits In recent years, most housing produced in the region and across the State consisted of single -family homes and larger multi-unit buildings. However, some households are increasingly interested in “missing middle housing,” including duplexes, triplexes, townhomes, cottage clusters, and accessory dwelling units. These housing types may open up more options across incomes and tenure, from young households see king homeownership options to seniors looking to downsize and age-in-place. The housing stock of the Town of Los Gatos in 2020 was made up of 59.6 percent Single-Family Home: Detached, 13.0 percent Single-Family Home: Attached, 9.0 percent Multifamily Housing: Two to Four Units, 17.9 percent Multifamily Housing: Five-Plus Units, and 0.5 percent Mobile Homes. In Los Gatos, the housing type that experienced the most growth between 2010 and 2020 was Single-Family Home: Detached. Figure 2-19 shows housing type trends in Los Gatos for 2010 and 2020. Figure 2-19 Los Gatos Housing Type Trends SOURCE: California Department of Finance, E-5 series. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-01. NOTE: Universe: Housing units. Production has not kept up with housing demand for several decades in the Bay Area, as the total number of units built and available has not yet come close to meeting the population and job growth experienced throughout the region. In the Town of Los Gatos, the largest proportion of the housing stock was Built 1960 to 1979, with 6,630 units constructed during this period. Since 2010, 2.6 percent of the cur rent housing stock was built, which is 342 units (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25034). Figure 2-20 shows housing units by the year built. 59.6% 13.0% 9.0% 17.9% 0.5% 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-25 Figure 2-20 Los Gatos Housing Units by Year Structure Built SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25034. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-04. NOTE: Universe: Housing units. Throughout the Bay Area, vacancies make up 2.6 percent of the total housing units, with homes listed for rent , units used for Recreational or Occasional Use, and units not otherwise classified (Other Vacant) making up the majority of vacancies. The Census Bureau classifies a unit as vacant if no one is occupying it when census interviewers are conducting the American Community Survey or Decennial Census. Vacant units classified as For Recreational or Occasional Use are those that are held for short-term periods of use throughout the year. Accordingly, vacation rentals and short-term rentals like AirBnB are likely to fall in this category. The Census Bureau classifies units as Other Vacant if they are vacant due to foreclosure, personal/family reasons, legal proceedings, repairs/renovations, abandonment, preparation for being rented or sold, or vacant for an extended absence for reasons such as a work assignment, military duty, or incarceration.14 In a region with a thriving economy and housing market like the Bay Area, units being renovated/repaired and prepared for rental or sale are likely to represent a large portion of the Other Vacant category. Additionally, the need for seismic retrofitting in older housing stock could also influence the proportion of Other Vacant units in some jurisdictions.15 Vacant units make up 7.5 percent of the overall housing stock in the Town of Los Gatos. The rental vacancy stands at 8.2 percent, while the ownership vacancy rate is 0.4 percent. Of the vacant units in the Town of Los Gatos, the most common type of vacancy is Other Vacant, which represents almost half of all vacant rental units.16 Figure 2-21 shows vacant units by type. 14 For more information, see pages 3 through 6 of this list of definitions prepared by the Census Bureau: https://www.census.gov/housing/hvs/definitions.pdf. 15 See Dow, P. (2018). Unpacking the Growth in San Francisco’s Vacant Housing Stock: Client Report for the San Francisco Planning Department. University of California, Berkeley. 16 The vacancy-rates-by-tenure is for a smaller universe than the total vacancy rate first reported, which in principle includes the full stock (7.5 percent). The vacancy by tenure counts are rates relative to the rental stock (occupied and vacant) and ownership stock (occupied and vacant) but exclude a significant number of vacancy categories, including the numerically significant other vacant. Draft 2023-2031 Housing Element 2-26 Draft 2023-2031 Housing Element December 2021 Figure 2-21 Los Gatos Vacant Units by Type SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25004. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-03. NOTE: Universe: Vacant housing units. Between 2015 and 2020, 279 housing units were issued building permits in the Town of Los Gatos. Of those, approximately 53.5 percent were for above moderate-income housing, approximately 28.5 percent were for moderate-income housing, and approximately 1.0 percent were for low-income, and approximately 17.0 percent were for very low-income housing. Table 2-2 shows residential building permits issued by the Town of Los Gatos by income group. 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-27 Table 2-2 Los Gatos, Residential Building Permits by Income Group, 2015 to 2020 Income Group Number Percent Very Low-Income Permits 49 17.0% Low-Income Permits 3 1.0% Moderate-Income Permits 81 28.5% Above Moderate-Income Permits 146 53.5% Total 279 100.0% SOURCE: California Department of Housing and Community Development (HCD), 5th Cycle Annual Progress Report Permit Summary (2020). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-11. NOTE: Universe: Housing permits issued between 2015 and 2021. Notes: HCD uses the following definitions for the four income categories: Very Low Income: units affordable to households making less than 50 percent of the Area Median Income for the county in which the jurisdiction is located. Low Income: units affordable to households making between 50 percent and 80 percent of the Area Median Income for the county in which the jurisdiction is located. Moderate Income: units affordable to households making between 80 percent and 120 percent of the Area Median Income for the county in which the jurisdiction is located. Above Moderate Income: units affordable to households making above 120 percent of the Area Median Income for the county in which the jurisdiction is located. Assisted Housing Developments At-Risk of Conversion While there is an immense need to produce new affordable housing units, ensuring that the existing affordable housing stock remains affordable is equally important. Additionally, it is typically faster and less ex pensive to preserve currently affordable units that are at risk of converting to market-rate than it is to build new affordable housing. The data in the table below comes from the California Housing Partnership’s Preservation Database, the State’s most comprehensive source of information on subsidized affordable housing at risk of losing its affordable status and converting to market-rate housing.17 According to the data, there are 169 assisted units in the Town of Los Gatos. Of these units, none were at high risk or very high risk of conversion. Table 2 -3 summarizes assisted units at risk in the Town of Los Gatos. 17 This database does not include all deed-restricted affordable units in the state, so there may be at-risk assisted units in a jurisdiction that are not captured in this data table. Draft 2023-2031 Housing Element 2-28 Draft 2023-2031 Housing Element December 2021 Table 2-3 Assisted Units at Potential Risk of Conversion Income Los Gatos Santa Clara County Bay Area Low-Income Units 169 28,001 110,177 Moderate-Income Units 0 1,471 3,375 High-Income Units 0 422 1,854 Very High-Income Units 0 270 1,053 Total 169 30,164 116,459 SOURCE: California Housing Partnership, Preservation Database (2020). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table RISK01. NOTE: Universe: HUD, Low-Income Housing Tax Credit (LIHTC), USDA, and CalHFA projects. Subsidized or assisted developments that do not have one of the aforementioned financing sources may not be included. While California Housing Partnership’s Preservation Database is the state’s most comprehensive source of information on subsidized affordable housing at risk of losing its affordable status and converting to market-rate housing, this database does not include all deed-restricted affordable units in the state. Consequently, there may be at-risk assisted units in a jurisdiction that are not captured in this data table. Per HCD guidance, local jurisdictions must also list the specific affordable housing developments at-risk of converting to market rate uses. This document provides aggregate numbers of at risk units for each jurisdiction, but local planning staff should contact Danielle Mazzella with the California Housing Partnership at dmazzella@chpc.net to obtain a list of affordable properties that fall under this designation. California Housing Partnership uses the following categories for assisted housing developments in its database: Very-High Risk: affordable homes that are at-risk of converting to market rate within the next year that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable non-profit, mission-driven developer. High Risk: affordable homes that are at-risk of converting to market rate in the next 1-5 years that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable non-profit, mission-driven developer. Moderate Risk: affordable homes that are at-risk of converting to market rate in the next 5-10 years that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable non-profit, mission-driven developer. Low Risk: affordable homes that are at-risk of converting to market rate in 10+ years and/or are owned by a large/stable non - profit, mission-driven developer. Substandard Housing Housing costs in the region are among the highest in the country, which could result in households, particularly renters, needing to live in substandard conditions in order to afford housing. Generally, there is limited data on the extent of substandard housing issues in a community. However, the Census Bureau data included in the graph below gives a sense of some of the substandard conditions that may be present in Los Gatos. For example, 4.1 percent of renters in Los Gatos reported lacking a kitchen and 1.4 percent of renters lack plumbing, compared to 0.4 percent of owners who lack a kitchen and 0.6 percent of owners who lack plumbing. Figure 2-22 shows substandard housing issues in Los Gatos. 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-29 Figure 2-22 Los Gatos Substandard Housing Issues SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25053, Table B25043, Table B25049 Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-06. NOTES: Universe: Occupied housing units. Per HCD guidance, this data should be supplemented by local estimates of units needing to be rehabilitated or replaced based on recent windshield surveys, local building department data, knowledgeable builders/developers in the community, or nonprofit housing developers or organizations. Home and Rent Values Home prices reflect a complex mix of supply and demand factors, including an area’s demographic profile, labor market, prevailing wages, and job outlook, coupled with land and construction costs. In the Bay Area, the costs of housing have long been among the highest in the nation. The typical home value in Los Gatos was estimated at $2,109,040 in December of 2020, per data from Zillow. The largest proportion of homes were valued in excess of $2 million. By comparison, the typical home value is $1,290,970 in Santa Clara County and $1,077,230 in the Bay Area, with the largest share of units valued $1 million to $1.5 million (county) and $500 thousand to $750 thousand (region). Figure 2-23 shows home values of owner-occupied housing units in Los Gatos. Draft 2023-2031 Housing Element 2-30 Draft 2023-2031 Housing Element December 2021 Figure 2-23 Home Values of Owner-Occupied Units SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25075. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-07. NOTE: Universe: Owner-occupied units. The region’s home values have increased steadily since 2000, besides a decrease during the Great Recession. The rise in home prices has been especially steep since 2012, with the median home value in the Bay Area nearly doubling during this time. Since 2001, the typical home value has increased 164.0 percent in Los Gatos from $798,770 to $2,109,040. This change is considerably greater than the change in Santa Clara County and for the region as a whole. Figure 2-24 shows Zillow home value index for Los Gatos. 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-31 Figure 2-24 Zillow Home Value Index (ZHVI) SOURCE: Zillow, Zillow Home Value Index (ZHVI). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-08. NOTES: Universe: Owner-occupied housing units. Zillow describes the ZHVI as a smoothed, seasonally adjusted measure of the typical home value and market changes across a given region and housing type. The ZHVI reflects the typical value for homes in the 35th to 65th percentile range. The ZHVI includes all owner-occupied housing units, including both single-family homes and condominiums. More information on the ZHVI is available from Zillow. The regional estimate is a household-weighted average of county-level ZHVI files, where household counts are yearly estimates from DOF’s E-5 series For unincorporated areas, the value is a population weighted average of unincorporated communities in the county matched to census-designated population counts. Similar to home values, rents have also increased dramatically across the Bay Area in recent years. Many renters have been priced out, evicted, or displaced, particularly communities of color. Residents finding themselves in one of these situations may have had to choose between commuting long distances to their jobs and schools or moving out of the region, and sometimes, out of the State. In Los Gatos, the largest proportion of rental units rented in the Rent $2,000-$2,500 category, totaling 24.2 percent, followed by 23.7 percent of units renting in the Rent $3,000 or More category. Looking beyond the Town, the largest share of units in Santa Clara County is in the Rent $2,000-$2,500 category, compared to the Rent $1,500-$2,000 category for the Bay Area as a whole. Figure 2-25 shows contract rents for renter-occupied units in Los Gatos, Santa Clara County, and the Bay Area as a whole. Draft 2023-2031 Housing Element 2-32 Draft 2023-2031 Housing Element December 2021 Figure 2-25 Contract Rents for Renter-Occupied Units SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25056. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-09. NOTE: Universe: Renter-occupied housing units paying cash rent. Since 2009, the median rent has increased by 33.5 percent in the Town of Los Gatos, from $1,700 to $2,270 per month. In Santa Clara County, the median rent has increased 39.6 percent, from $1,540 to $2,150. The median rent in the region has increased significantly during this time from $1,200 to $1,850, a 54.2 percent increase.18 Figure 2-25 shows median contract rent in the Town of Los Gatos, Santa Clara County, and the Bay Area as a whole. 18 While the data on home values shown in Figure 2-24 comes from Zillow, Zillow does not have data on rent prices available for most Bay Area jurisdictions. To have a more comprehensive dataset on rental data for the region, the rent data in this document comes from the U.S. Census Bureau’s American Community Survey, which may not fully reflect current rents. Local jurisdiction staff may want to supplement the data on rents with local realtor data or other sources for rent data that are more current than Census Bureau data. 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-33 Figure 2-26 Median Contract Rent SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data releases, starting with 2005-2009 through 2015-2019, B25058, B25056 (for unincorporated areas). County and regional counts are weighted averages of jurisdiction median using B25003 re ntal unit counts from the relevant year. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-10. NOTES: Universe: Renter-occupied housing units paying cash rent. For unincorporated areas, median is calculated using distribution in B25056. Overpayment and Overcrowding A household is considered “cost-burdened” if it spends more than 30 percent of its monthly income on housing costs, while those who spend more than 50 percent of their income on housing costs are considered “severely cost-burdened.” Low-income residents are the most impacted by high housing costs and experience the highest rates of cost burden. Spending such large portions of their income on housing puts low-income households at higher risk of displacement, eviction, or homelessness. While the housing market has resulted in home prices increasing dramatically, homeowners often have mortgages with fixed rates, whereas renters are more likely to be impacted by market increases. When looking at the cost burden across tenure in the Town of Los Gatos, 19.8 percent of renters spend 30 percent to 50 percent of their income on housing compared to 16.2 percent of those that own. Additionally, 22.2 percent of renters are severely cost-burdened (i.e., spend 50 percent or more of their income on housing), while 12.1 percent of owners are severely cost-burdened. Figure 2-27 shows cost burden by tenure. Draft 2023-2031 Housing Element 2-34 Draft 2023-2031 Housing Element December 2021 Figure 2-27 Cost Burden by Tenure, Los Gatos SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25070, B25091. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table OVER-06. NOTES: Universe: Occupied housing units. Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is “select monthly owner costs”, which includes mortgage payment, utilities, association fees, insurance, and real estate taxes. HUD defines cost-burdened households as those whose monthly housing costs exceed 30 percent of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50 percent of monthly income. When one looks at both renters and owners together in the Town of Los Gatos, 15.6 percent of households spend 50 percent or more of their income on housing, while 17.5 percent spend 30 percent to 50 percent. However, these rates vary greatly across income categories. For example, 78.3 percent of Los Gatos households making less than 30 percent of AMI spend the majority of their income on housing. For Los Gatos residents making more than 100 percent of AMI, just 3.7 percent are severely cost-burdened, and 83.9 percent of those making more than 100 percent of AMI spend less than 30 percent of their income on housing. Figure 2-28 shows cost burden by income level. 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-35 Figure 2-28 Cost Burden by Income Level, Los Gatos SOURCE: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table OVER-05. NOTES: Universe: Occupied housing units. Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is “select monthly owner costs”, which includes mortgage payment, utilities, association fees, insurance, and real estate taxes. HUD defines cost-burdened households as those whose monthly housing costs exceed 30 percent of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50 percent of monthly income. Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oa kland Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo -Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located. Currently, people of color19 are more likely to experience poverty and financial instability as a result of Federal, State, and local housing policies that have historically excluded them from the same opportunities extended to white residents. As a result, they often pay a greater percentage of their income on housing, and in turn, are at a greater risk of housing insecurity. Hispanic or Latinx residents are the most severely cost burdened with 22.2 percent spending more than 50 percent of their income on housing. Figure 2-29 shows cost burden by race. 19 As before, this category as it is used here includes all non-White persons. 3.7% Draft 2023-2031 Housing Element 2-36 Draft 2023-2031 Housing Element December 2021 Figure 2-29 Cost Burden by Race, Los Gatos SOURCE: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table OVER-08. NOTES: Universe: Occupied housing units. Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is “select monthly owner costs”, which includes mortgage payment, utilities, association fees, insurance, and real estate taxes. HUD defines cost-burdened households as those whose monthly housing costs exceed 30 percent of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50 percent of monthly income. For the purposes of this graph, the “Hispanic or Latinx” racial/ethnic group represents those who identify as having Hispanic/Latinx ethnicity and may also be members of any racial group. All other racial categories on this graph represent those who identify with that racial category and do not identify with Hispanic/Latinx ethnicity. Large family households often have special housing needs due to a lack of adequately sized affordable housing available. The higher costs required for homes with multiple bedrooms ca n result in larger families experiencing a disproportionate cost burden than the rest of the population and can increase the risk of housing insecurity. In the Town of Los Gatos, 12.2 percent of large family households experience a cost burden of 30 to 50 percent, while 9.6 percent of households spend more than half of their income on housing. Some 17.8 percent of all other households have a cost burden of 30 percent to 50 percent, with 16.8 percent of households spending more than 50 percent of their income on housing. Figure 2-30 shows cost burden by household size. 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-37 Figure 2-30 Cost Burden by Household Size, Los Gaots SOURCE: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table OVER-09. NOTES: Universe: Occupied housing units. Cost burden is the ratio of housing costs to household income. For renter s, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is “select monthly owner costs”, which includes mortgage payment, utilities, association fees, insurance, and real estate taxes. HUD defines cost-burdened households as those whose monthly housing costs exceed 30 percent of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50 percent of monthly income. When cost-burdened seniors are no longer able to make house payment s or pay rents, displacement from their homes can occur, putting further stress on the local rental market or forcing residents out of the community they call home. Understanding how seniors might be cost-burdened is of particular importance due to their special housing needs, particularly for low-income seniors. In the Town of Los Gatos, 74.1 percent of seniors making less than 30 percent of AMI are spending the majority of their income on housing. For seniors making more than 100 percent of AMI, only 4.3 percent are spending the majority of their income on housing. Figure 2-31 shows cost-burdened senior households by income level. Draft 2023-2031 Housing Element 2-38 Draft 2023-2031 Housing Element December 2021 Figure 2-31 Cost-Burdened Senior Households by Income Level, Los Gatos SOURCE: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table SEN-03. NOTES: Universe: Senior households. For the purposes of this graph, senior households are those with a householder who is age d 62 or older. Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is “select monthly owner costs”, which includes mortgage payment, utilities, association fees, insur ance, and real estate taxes. HUD defines cost-burdened households as those whose monthly housing costs exceed 30 percent of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50 percent of monthly income. Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland -Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo -Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located. Overcrowding occurs when the number of people living in a household is greater than the home was designed to hold.20 The Census Bureau considers units with more than 1.5 occupants per room to be severely overcrowded. Overcrowding is often related to the cost of housing and can occur when demand in a town, city, or region is high. In many towns and cities, overcrowding is seen more amongst those that are renting, with multiple households sharing a unit to make it possible to stay in their communities. In the Town of Los Gatos, 4.3 percent of households that rent are severely overcrowded (i.e., more than 1.5 occupants p er room), compared to 0.3 percent of households that own. Figure 2-32 shows overcrowding by tenure and severity. 20 There are several different standards for defining overcrowding, but this report uses the Census Bureau definition, which is more than one occupant per room (not including bathrooms or kitchens). 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-39 Figure 2-32 Los Gatos Overcrowding by Tenure and Severity SOURCE: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table OVER-01. NOTES: Universe: Occupied housing units. The Census Bureau defines an overcrowded unit as one occupied by 1.01 persons or more per room (excluding bathrooms and kitchens), and units with more than 1.5 persons per room are considered severely overcrowded. Overcrowding often disproportionately impacts low-income households. In Los Gatos, less than one percent of very low-income households (i.e., below 50 percent AMI) experience severe overcrowding. The income group most experiencing severe overcrowding is the 81%-100% of AMI group. Figure 2-33 shows overcrowding by income level and severity. Draft 2023-2031 Housing Element 2-40 Draft 2023-2031 Housing Element December 2021 Figure 2-33 Los Gatos Overcrowding by Income Level and Severity SOURCE: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table OVER-04. NOTES: Universe: Occupied housing units. The Census Bureau defines an overcrowded unit as one occupied by 1.01 persons or more per room (excluding bathrooms and kitchens), and units with more than 1.5 persons per room are considered severely overcrowded. I ncome groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland -Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo -Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located. Communities of color are more likely to experience overcrowding similar to how they are more likely to experience poverty, financial instability, and housing insecurity. People of color tend to experience overcrowding at higher rates than White residents. In Los Gatos, the racial group with the largest overcrowding rate is Hispanic or Latinx. Figure 2-34 shows overcrowding by race. 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-41 Figure 2-34 Overcrowding by Race, Los Gatos SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25014. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table OVER-03. NOTES: Universe: Occupied housing units. The Census Bureau defines an overcrowded unit as one occupied by 1.01 persons or mor e per room (excluding bathrooms and kitchens), and units with more than 1.5 persons per room are considered severely overcrowded. F or this table, the Census Bureau does not disaggregate racial groups by Hispanic/Latinx ethnicity. However, data for the white racial group is also reported for white householders who are not Hispanic/Latinx. Since residents who identify as white and Hispanic/Latinx may have very different experiences within the housing market and the economy from those who identify as white and non-Hispanic/Latinx, data for multiple white sub-groups are reported here. The racial/ethnic groups reported in this table are not all mutually exclusive. Therefore, the data should not be summed as the sum exceeds the total number of occupied housing units for this jurisdiction. However, all groups labelled “Hispanic and Non-Hispanic” are mutually exclusive, and the sum of the data for these groups is equivalent to the total number of occupied housing units. 2.4 Special Housing Needs Large Households Large households often have different housing needs than smaller households. If the Town’s rental housing stock does not include larger apartments, large households who rent could end up living in overcrowded conditions. In Los Gatos, for large households with five or more persons, most units were owner occupied. Figure 2-35 shows household size by tenure. Draft 2023-2031 Housing Element 2-42 Draft 2023-2031 Housing Element December 2021 Figure 2-35 Household Size by Tenure, Los Gatos SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25009. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table LGFEM-01. NOTE: Universe: Occupied housing units. The unit sizes available in a community affect the household sizes that can access that community. Large families are generally served by housing units with three or more bedrooms, of which there are 7,760 units in the Town of Los Gatos. Among these large units, most are owner occupied. Figure 236 summarizes housing units by the number of bedrooms. 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-43 Figure 2-36 Housing Units by Number of Bedrooms, Los Gatos SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25042. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-05. NOTE: Universe: Housing units. Female-Headed Households Households headed by one person are often at greater risk of housing insecurity, particularly female-headed households, who may be supporting children or a family with only one income. In the Town of Los Gatos, the largest proportion of households is Married-Couple Family Households at 58.1 percent of the total, while Female-Headed Family Households make up 8.2 percent of all households. Figure 2- 37 provides information on household type in Los Gatos. Draft 2023-2031 Housing Element 2-44 Draft 2023-2031 Housing Element December 2021 Figure 2-37 Household Type SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B11001. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-23. NOTES: Universe: Households. For data from the Census Bureau, a “family household” is a household where two or more people are related by birth, marriage, or adoption. “Non-family households” are households of one person living alone, as well as households where none of the people are related to each other. Female-headed households with children may face particular housing c hallenges, with pervasive gender inequality resulting in lower wages for women. Moreover, the added need for childcare can make finding a home that is affordable more challenging. In Los Gatos, 36 female-headed households with children (8.1 percent) fell in the Below Poverty Level category, while 26 female-headed households without children (4.7 percent) fell in the Below Poverty Level category. Figure 2-38 shows female-headed households by poverty status. 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-45 Figure 2-38 Female-Headed Households by Poverty Status, Los Gatos SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B17012. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table LGFEM-05. NOTES: Universe: Female Households. The Census Bureau uses a federally defined poverty threshold that remains constant throughout the country and does not correspond to Area Median Income. Seniors Senior households often experience a combination of factors that can make accessing or keeping affordable housing a challenge. They often live on fixed incomes and are more likely to have disabilities, chronic health conditions, and/or reduced mobility. Seniors who rent may be at even greater risk for housing challenges than those who own, due to income differences between these groups. In the Town of Los Gatos, the largest proportion of senior households who rent fell into one of the categories below the Greater than 100% AMI category, while the largest proportion of senior households who are homeowners fell in the Greater than 100% AMI category. Figure 2-39 shows senior households by income and tenure. Draft 2023-2031 Housing Element 2-46 Draft 2023-2031 Housing Element December 2021 Figure 2-39 Senior Households by Income and Tenure, Los Gatos SOURCE: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table SEN-01. NOTES: Universe: Senior households. For the purposes of this graph, senior households are those with a householder who is aged 62 or older. Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located. People with Disabilities People with disabilities face additional housing challenges. Encompassing a broad group of individuals living with a variety of physical, cognitive, and sensory impairments, many people with disabilities live on fixed incomes and are in need of specialized care, yet often rely on family members for assistance due to the high cost of care. When it comes to housing, people with disabilities are not only in need of affordable housing , but accessibly designed housing, which offers greater mobility and opportunity for independence. Unfortunately, the need typically outweighs what is available, particularly in a housing market with such high demand. People with disabilities are at a high risk for housing insecurity, homelessness, and institutionalization, particularly when they lose aging caregivers. Overall, 9.3 percent of people in Los Gatos have a disability of some kind.21 Figure 2-40 shows the rates at which different disabilities are present among residents of Los Gatos. 21 These disabilities are counted separately and are not mutually exclusive, as an individual may report more than one disability. These counts should not be summed. 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-47 Figure 2-40 Disability by Type, Los Gatos SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B18102, Table B18103, Table B18104, Table B18105, Table B18106, Table B18107. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table DISAB-01. NOTES: Universe: Civilian noninstitutionalized population 18 years and over. These disabilities are counted separately and are not mutually exclusive, as an individual may report more than one disability. These counts should not be summed. The Census Bureau provides the following definitions for these disability types: Hearing difficulty: deaf or has serious difficulty hearing. Vision difficulty: blind or has serious difficulty seeing even with glasses. Cognitive difficulty: has serious difficulty concentrating, remembering, or maki ng decisions. Ambulatory difficulty: has serious difficulty walking or climbing stairs. Self-care difficulty: has difficulty dressing or bathing. Independent living difficulty: has difficulty doing errands alone such as visiting a doctor’s office or shopping. State law also requires Housing Elements to examine the housing needs of people with developmental disabilities. Developmental disabilities are defined as severe, chronic, and attributed to a mental or physical impairment that begins before a person turns 18 years old. This can include Down’s Syndrome, autism, epilepsy, cerebral palsy, and mild to severe mental handicap. Some people with developmental disabilities are unable to work, rely on Supplemental Security Income, and live with family members. In addition to their specific housing needs, they are at increased risk of housing insecurity after an aging parent or family member is no longer able to care for them.22 In the Town of Los Gatos, there are 50 children under the age of 18 with a developmental disability (40.7 percent), while there are 73 adults with a developmental disability (59.3 percent). Table 2-4 below shows the number of persons in Los Gatos with developmental disabilities by age. 22 For more information or data on developmental disabilities in your jurisdiction, contact the Golden Gate Regional Center for Marin, San Francisco and San Mateo Counties; the North Bay Regional Center for Napa, Solano and Sonoma Counties; the Regional Center for the East Bay for Alameda and Contra Costa Counties; or the San Andreas Regional Center for Santa Clara County. Draft 2023-2031 Housing Element 2-48 Draft 2023-2031 Housing Element December 2021 Table 2-4 Los Gatos Population with Developmental Disabilities by Age Age Group Number Age Under 18 50 Age 18+ 73 SOURCE: California Department of Developmental Services, Consumer Count by California ZIP Code and Age Group (2020). This table is included in the Data Packet Workbook as Table DISAB-04. NOTE: Universe: Population with developmental disabilities. Notes: The California Department of Developmental Services is responsible for overseeing the coordination and delivery of services to more than 330,000 Californians with developmental disabilities includ ing cerebral palsy, intellectual disability, Down syndrome, autism, epilepsy, and related conditions. The California Department of Developmental Services provides ZIP code level counts. To get jurisdiction-level estimates, ZIP code counts were cross walked to jurisdictions using census block population counts from Census 2010 SF1 to determine the share of a ZIP code to assign to a given jurisdiction. The most common living arrangement for individuals with disabilities is in Los Gatos is the home of parent/family/guardian. Table 2-5 shows the Los Gatos population with developmental disabilities by residence. Table 2-5 Los Gatos Population with Developmental Disabilities by Residence Residence Type Number Home of Parent/Family/Guardian 102 Foster/Family Home 9 Independent/Supported Living 7 Other 4 Community Care Facility 4 Intermediate Care Facility 0 SOURCE: California Department of Developmental Services, Consumer Count by California ZIP Code and Residence Type (2020). This table is included in the Data Packet Workbook as Table DISAB-05. NOTE: Universe: Population with developmental disabilities. Notes: The California Department of Developmental Services is responsible for overseeing the coordination and delivery of services to more than 330,000 Californians with developmental disabilities including cerebral palsy, intellectual disability, Down syndrome, autism, epilepsy, and related conditions. The California Department of Developmental Services provides ZIP code level counts. To get jurisdiction-level estimates, ZIP code counts were cross walked to jurisdictions using census block population counts from Census 2010 SF1 to determine the share of a ZIP code to assign to a given jurisdiction. Homelessness Homelessness remains an urgent challenge in many communities across the State, reflecting a range of social, economic, and psychological factors. Rising housing costs result in increased risks of community members experiencing homelessness. Far too many residents who have found themselves housing insecure have ended up homeless in recent years, either temporarily or longer term. Addressing the specific housing needs for the unhoused population remains a priority throughout the region, particularly since homelessness is disproportionately experienced by people of color, people with disabilities, those struggling with addiction , and those dealing with traumatic life circumstances. In Santa Clara County, the most common type of household experiencing homelessness are those without children in their care. Among households experiencing homelessness that do not have children, 87.1 percent are unsheltered. Of homeless households with children, most are sheltered in an emergency shelter. Figure 2-41 shows household type and shelter status in Santa Clara County. 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-49 Figure 2-41 Homelessness by Household Type and Shelter Status, Santa Clara County SOURCE: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulati ons Reports (2019). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HOMELS-01. NOTES: Universe: Population experiencing homelessness. This data is based on Point-in-Time (PIT) information provided to HUD by CoCs in the application for CoC Homeless Assistance Programs. The PIT Count provides a count of sheltered and unsheltered homeless persons on a single night during the last ten days in January. Each Bay Area county is its own CoC, and so the data for this table is provided at the county-level. Per HCD’s requirements, jurisdictions will need to supplement this county-level data with local estimates of people experiencing homelessness. People of color are more likely to experience poverty and financial instability as a result of fe deral and local housing policies that have historically excluded them from the same opportunities extended to white residents. Consequently, people of color are often disproportionately impacted by homelessness, particularly Black residents of the Bay Area. In Santa Clara County, White (Hispanic and Non-Hispanic) residents represent the largest proportion of residents experiencing homelessness and account for 43.9 percent of the homeless population, while making up 44.5 percent of the overall population. Figure 2-42 shows the racial group share of the homeless population. Draft 2023-2031 Housing Element 2-50 Draft 2023-2031 Housing Element December 2021 Figure 2-42 Racial Group Share of General and Homeless Populations, Santa Clara County SOURCE: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports (2019); U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B01001(A-I). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HOMELS-02. NOTES: Universe: Population experiencing homelessness. This data is based on Point-in-Time (PIT) information provided to HUD by CoCs in the application for CoC Homeless Assistance Programs. The PIT Count provides a count of sheltered and unsheltered homeless persons on a single night during the last ten days in January. Each Bay Area county is its own CoC, and so the data for this table is provided at the county-level. Per HCD’s requirements, jurisdictions will need to supplement this county-level data with local estimates of people experiencing homelessness. HUD does not disaggregate racial demographic data by Hispanic/Latinx ethnicity for people experien cing homelessness. Instead, HUD reports data on Hispanic/Latinx ethnicity for people experiencing homelessness in a separate table. Accordingly, the racial group data listed here includes both Hispanic/Latinx and non-Hispanic/Latinx individuals. In Santa Clara County, Latinx residents represent 42.7 percent of the population experiencing homelessness, while Latinx residents comprise 25.8 percent of the general population. Figure 2-43 shows the Latinx share of the homeless population in Santa Clara County. 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-51 Figure 2-43 Latinx Share of General and Homeless Populations, Santa Clara County SOURCE: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports (2019); U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B01001(A-I). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HOMELS-03. NOTES: Universe: Population experiencing homelessness. This data is based on Point-in-Time (PIT) information provided to HUD by CoCs in the application for CoC Homeless Assistance Programs. The PIT Count provides a count of sheltered and unsheltered homeless persons on a single night during the last ten days in January. Each Bay Area county is its own CoC, and so the data for this table is provided at the county-level. Per HCD’s requirements, jurisdictions will need to supplement this county-level data with local estimates of people experiencing homelessness. The data from HUD on Hispanic/Latinx ethnicity for individuals experiencing homelessness does not specify racial group identity. Accordingly, individuals in either ethnic group identity category (Hispanic/Latinx or non-Hispanic/Latinx) could be of any racial background. Many of those experiencing homelessness are dealing with severe issues, including mental illness, substance abuse, and domestic violence, which are potentially life threatening and require additional assistance. In Santa Clara County, homeless individuals are commonly challenged by severe mental illness, with 2,659 reporting this condition. Of those, some 87.6 percent are unsheltered, further adding to the challenge of handling the issue. Figure 2-44 shows selected characteristics of the homeless population in Santa Clara County. Draft 2023-2031 Housing Element 2-52 Draft 2023-2031 Housing Element December 2021 Figure 2-44 Characteristics for the Population Experiencing Homelessness, Santa Clara County SOURCE: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports (2019). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HOMELS-04. NOTES: Universe: Population experiencing homelessness. This data is based on Point-in-Time (PIT) information provided to HUD by CoCs in the application for CoC Homeless Assistance Programs. The PIT Count provides a count of sheltered and unsheltered homeless persons on a single night during the last ten days in January. Each Bay Area county is its own CoC, and so the data for this table is provided at the county-level. Per HCD’s requirements, jurisdictions will need to supplement this county-level data with local estimates of people experiencing homelessness. These challenges/characteristics are counted separately and are not mutually exclusive, as an individual may report more than one challenge/characteristic. These counts should not be summed. In the Town of Los Gatos, there were no reported students experiencing homeless in the 2019-20 school year. By comparison, Santa Clara County has seen a 3.5 percent increase in the population of students experiencing homelessness since the 2016-17 school year, and the Bay Area population of students experiencing homelessness decreased by 8.5 percent. During the 2019-2020 school year, there were still some 13,718 students experiencing homelessness throughout the region, adding undue burdens on learning and thriving, with the potential for longer term negative effects. Table 2-6 summarizes students in public schools experiencing homelessness. 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-53 Table 2-6 Students in Local Public Schools Experiencing Homelessness Academic Year Los Gatos Santa Clara County Bay Area 2016-17 0 2,219 14,990 2017-18 0 2,189 15,142 2018-19 0 2,405 15,427 2019-20 0 2,297 13,718 SOURCE: California Department of Education, California Longitudinal Pupil Achievement Data System (CALPADS), Cumulative Enrollment Data (Academic Years 2016-2017, 2017-2018, 2018-2019, 2019-2020). This table is included in the Data Packet Workbook as Table HOMELS-05. NOTE: Universe: Total number of unduplicated primary and short-term enrollments within the academic year (July 1 to June 30), public schools. The California Department of Education considers students to be homeless if they are unsheltered, living in temporary shelters for people experiencing homelessness, living in hotels/motels, or temporarily doubled up and sharing the housing of other pers ons due to the loss of housing or economic hardship. The data used for this table was obtained at the school site level, matched to a file containing school locations, geocoded and assigned to jurisdiction, and finally summarized by geography. Farmworkers Across the State, housing for farmworkers has been recognized as an important and unique concern. Farmworkers generally receive wages that are considerably lower than other jobs and may have temporary housing needs. Finding affordable housing can be challenging, particularly in the current housing market. In the Town of Los Gatos, there were no reported students of migrant workers in the 2019 -20 school year. The trend for the region for the past few years has been a decline of 2.4 percent in the number of migrant worker students since the 2016-17 school year. The change at the county level is a 49.7 percent decrease in the number of migrant worker students since the 2016-17 school year. Table 2-7 summarizes migrant worker student population in the Town of Los Gatos, Santa Clara County, and the Bay Area as a whole. Draft 2023-2031 Housing Element 2-54 Draft 2023-2031 Housing Element December 2021 Table 2-7 Migrant Worker Student Population Academic Year Los Gatos Santa Clara County Bay Area 2016-17 0 978 4,630 2017-18 0 732 4,607 2018-19 0 645 4,075 2019-20 0 492 3,976 SOURCE: California Department of Education, California Longitudinal Pupil Achievement Data System (CALPADS), Cumulative Enrollment Data (Academic Years 2016-2017, 2017-2018, 2018-2019, 2019-2020). This table is included in the Data Packet Workbook as Table FARM 01. NOTES: Universe: Total number of unduplicated primary and short-term enrollments within the academic year (July 1 to June 30), public schools. The data used for this table was obtained at the school site level, matched to a file containing school locations, geocoded and assigned to jurisdiction, and finally summarized by geography. According to the U.S. Department of Agriculture Census of Farmworkers, the number of permanent farm workers in Santa Clara County has increased since 2002, totaling 2,418 in 2017, while the number of seasonal farm workers has decreased, totaling 1,757 in 2017. Figure 2-45 shows farm operation and labor in Santa Clara County. Figure 2-45 Farm Operations and Farm Labor by County, Santa Clara County SOURCE: U.S. Department of Agriculture, Census of Farmworkers (2002, 2007, 2012, 2017), Table 7: Hired Farm Labor . For the data table behind this figure, please refer to the Data Packet Workbook, Table FARM-02. NOTES: Universe: Hired farm workers (including direct hires and agricultural service workers who are often hired through labo r contractors). Farm workers are considered seasonal if they work on a farm less than 150 days in a year, while farm workers who work on a farm more than 150 days are considered to be permanent workers for that farm. Non-English Speakers California has long been an immigration gateway to the United States, which means that many languages are spoken throughout the Bay Area. Since learning a new language is universally challenging, it is not uncommon for residents who have immigrated to the United States to have limited English proficiency. This limitation can 2. Housing Needs Assessment December 2021 Draft 2023-2031 Housing Element 2-55 lead to additional disparities if there is a disruption in housing, such as an eviction, because residents might not be aware of their rights or they might be wary to engage due to immigration status concerns. In the Town of Los Gatos, 1.7 percent of residents five years and older identified as speaking English not well or not at all, which was below the proportion for Santa Clara County. Throughout the region the proportion of residents five years and older with limited English proficiency was eight percent. Figure 2-46 shows population with limited English proficiency in the Town of Los Gatos, Santa Clara County, and the Bay Area as a whole. Figure 2-46 Population with Limited English Proficiency SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B16005. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table AFFH-03. NOTE: Universe: Population 5 years and over. Santa Clara County has approximately 23 emergency shelters, providing close to 800 beds year -round, with an additional 300 beds available during the winter months (November through March). There are also over 1,100 transitional housing beds throughout the County that offer a combination of stable housing and intensive, targeted support services for the mentally ill, those with chronic substance abuse, developmental disabilities, and other factors that prevent the homeless from returning to permanent housin g situations. Transitional housing includes both single site and "scattered site" programs. Table 2-8 provides a summary of homeless facilities, emergency shelters and transitional housing near the Town of Los Gatos. 1.7% Draft 2023-2031 Housing Element 2-56 Draft 2023-2031 Housing Element December 2021 Table 2-8 Homeless Facilities Near Los Gatos Facility Beds Target Population Location Emergency Shelters Asian Americans for Community Involvement 12 Women with Children San Jose City Team Rescue Mission 52 Single men San Jose Hospitality House, Salvation Army 24 Single men San Jose Our House Youth Services HomeFirst 10 Homeless and run-away youth San Jose San Jose Family Shelter 143 Families San Jose Support Network for Battered Women 18 Domestic violence shelter- women and children San Jose Emergency Shelter/Transitional Housing InnVision 178 Working men, women & children, mentally ill men & women San Jose James Boccardo Reception Center 370 Families and single adults San Jose Transitional Housing Next Door- Women with Children 19 Domestic Violence Shelter -Women and children San Jose St. Josephs Cathedral 45 Worker housing- men, women and children San Jose YWCA- Villa Nueva 126 Women and children San Jose SOURCE: Santa Clara County Consolidated Plan, 2010-2015 Appendix 5 Appendix 5. Review of Previous Housing Element December 2021 Draft 2023-2031 Housing Element 5-1 TABLE OF CONTENTS Appendix 5. Review of Previous Housing Element 5.1 Introduction……………………………………………………………………………………….2 5.2 Effectiveness of the Housing Element………………………………………………………... 2 5.3 Progress on Implementation………………………………………………………………...… 3 5.4 Appropriateness of Goals, Objectives, and Policies ………………………………………… 9 5.5 Summary………………………………………………………………………………………..10 Tables Table A5-1 Overview of Adopted Programs……………………………………………………………….. 4 Table A5-2 Housing Units Produced, 2015-2023…………………………………………………………. 9 ATTACHMENT 4 5. Review of Previous Housing Element December 2021 Draft 2023-2031 Housing Element 5-2 5.1 Introduction In order to effectively plan for the future, it is important to reflect back on the goals of the previous Housing Element and to identify those areas where progress was made and those areas where continued effort is needed. State Housing Element guidelines require communities to evaluate their previous Housing Element according to the following criteria: ▪ Effectiveness of the Element; ▪ Progress on Implementation; and ▪ Appropriateness of Goals, Objectives, and Policies. 5.2 Effectiveness of the Element The Town of Los Gatos’ 2015 Housing Element identified the following goals: ▪ Expand the choice of housing opportunities for all economic segments of the community by supporting the development of affordable housing in a variety of types and sizes, including a mixture of ownership and rental housing. ▪ Maintain and/or adopt appropriate land use regulations and other development tools to encourage the development of affordable housing that is compatible with the neighborhood and the community. ▪ Preserve existing residential opportunities, including the existing affordable housing stock. ▪ Ensure that all persons have equal access to housing opportunities. ▪ Retain and expand affordable housing opportunities for seniors. ▪ Mitigate Town governmental constraints to affordable and special needs housing development. ▪ Encourage residential construction that promotes green building and energy conservation practices. ▪ Ensure that the Town has sufficient resources and takes appropriate measures to implement the Housing Element. ▪ Maintain the Town’s 2005 jobs-to-household ratio of 1.5 jobs per household. In order to achieve these goals, the 2015 Housing Element listed a series of policies and actions. The policies covered a range of housing concerns, including appropriate zoning for lower and moderate - income households, assisting in developing affordable housing, removing governmental constraints, conserving the existing affordable housing stock, preventing the conversion of affordable units to market rate, and promoting equal housing opportunities for all persons. The policies comply wi th State housing law guidelines. 5. Review of Previous Housing Element December 2021 Draft 2023-2031 Housing Element 5-3 5.3 Progress on Implementation To assess the Town’s progress on implementing the 2015 Housing Element, the following key areas were reviewed: ▪ Adopted Programs; ▪ Production of Housing; ▪ Preservation of “At Risk” Units; and ▪ Rehabilitation of Existing Units. Each of these areas is discussed in detail below. Overview of Adopted Programs Table A5-1 identifies all of the actions the Town committed to in the 2015 Housing Element. The table also includes a description of the progress that was made during the 2015–2023 planning period. Draft 2023-2031 Housing Element December 2021 Draft 2023-2031 Housing Element 5-4 Table A5-1 Overview of Adopted Programs No. Programs/Actions [The text provided in this column is a synopsis only; for complete program language refer to the 2015 Housing Element] Achievements/Effectiveness Continue/Modify/ Delete 1.1 Continue to implement the Below Market Price (BMP) program and evaluate it annually to ensure it is not a constraint to development. BMP Program is implemented on all residential projects that meet the criteria. Continue 1.2 Amend the Town Code to allow new deed restricted Accessory Dwelling Units (ADU) to be affordable to lower income households on non-conforming residential lots over 10,000 square feet and in the Hillside Residential Zone on sites that are larger than 5 acres. Town Code has been amended to address this. Continue 1.3 Continue to provide up to a 100 percent density bonus for developments that include housing for elderly, handicapped, and/or very low and low-income households. This is an incentive that is provided to projects that meet the criteria. Continue 1.4 Using BMP in-lieu fees, implement the proposed programs and initiatives of the Town’s Affordable Housing Strategies to increase and preserve affordable housing, such as purchasing affordability covenants in existing apartments. Use of BMP in-lieu fees will be considered as opportunities arise. Continue 1.5 Hold a periodic outreach meeting with affordable housing developers to discuss the development of housing affordable to extremely low-income households. The Town will consider incentives when projects of this nature are proposed. Continue 1.6 Encourage the creation of housing that is affordable to extremely low-income households by considering allocating a percentage of the Town ’s Affordable Housing (Below Market Price) fund to subsidize housing for extremely low-income households. Use of BMP in-lieu fees will be considered as opportunities arise. Continue 2.1 Continue to implement the minimum density and affordable housing incentives within the AHOZ. This will be implemented when a project in the AHOZ is considered. Continue 2.2 For multiple-family residential development within the North 40 and the Southbay AHOZ site, subject to by right development, the Town will amend the Town Code to add by right development findings. This has not yet been completed. Continue 2.3 The Town Code (Zoning Regulations) will be amended to clarify that Transitional and Supportive Housing is permitted in all residential zones by right. The Town will comply with State Law and SB 743 if a project is proposed before the Town Code is amended. Continue 5. Review of Previous Housing Element December 2021 Draft 2023-2031 Housing Element 5-5 No. Programs/Actions [The text provided in this column is a synopsis only; for complete program language refer to the 2015 Housing Element] Achievements/Effectiveness Continue/Modify/ Delete 2.4 For multiple family residential development within the North 40 and the Southbay AHOZ site subject to by right development, the Town will amend the Town Code to add by right development findings. This has not yet been completed. Continue 2.5 To ensure adequate residential capacity to accommodate the RHNA for each income category, the Town will develop and implement an ongoing formal evaluation procedure (project-by-project) of sites identified in the Sites Inventory. If this situation arises the Town will comply with this requirement. Continue 3.1 Continue to monitor affordable, multi-family housing units in the Town to ensure that they retain their affordability status. No units have been converted to market rate rents. Continue 3.2 The Town will continue to implement Section 29.20.155 of the Town Code that addresses conversions of residential use, specifically Section 29.20.155(a)(2) that requires that any proposed conversion satisfy the housing goa ls and policies as set forth in the General Plan. This will be considered if a conversion of residential uses is proposed. Continue 3.3 Continue to participate in the County of Santa Clara Community Development Block Grant Joint Powers Authority so Town residents can participate in County CDBG Housing Rehabilitation programs. The Town still participates in these programs. Continue 3.4 Continue to support countywide programs that provide assistance with minor home repairs and accessibility improvements for lower-income households, including special needs households. The Town supports these programs. Continue 4.1 Continue to provide a guide to developments that include affordable housing units as part of the Housing Resources Guide posted on the Town’s website. Town Housing Resources Guide is updated when necessary. Continue 4.2 Continue the administration of the Rental Dispute Resolution Program and consider revisions as necessary to make the program as effective as possible in protecting both tenants and landlords’ rights. The Town continues to use Project Sentinel to administer a Rental Dispute Resolution Program. Continue 4.3 Continue to allow for an emergency shelter as a by-right permitted use in the Controlled Manufacturing (CM) zoning district, subject to appropriate development standards. Town Code has been amended to address this. Continue 4.4 Continue to provide support for community and non -profit organizations providing supportive services for homeless persons in Los Gatos. The Town continues to support organizations that provide supportive services for homeless persons. Continue Draft 2023-2031 Housing Element December 2021 Draft 2023-2031 Housing Element 5-6 No. Programs/Actions [The text provided in this column is a synopsis only; for complete program language refer to the 2015 Housing Element] Achievements/Effectiveness Continue/Modify/ Delete 4.5 Support the efforts of the Santa Clara County Fair Housing Consortium. Continue to make referrals through Project Sentinel and provide updated fair housing information on the Town’s website and at public locations through the Town, such as the Adult Recreation Center and public kiosks. Project Sentinel is a member of the Santa Clara County Fair Housing Consortium and administers the Town's Rental Dispute Resolution Program. Continue 4.6 Support the efforts of non-profit affordable housing organizations that provide housing services in Los Gatos. The Town has met with affordable housing organizations regarding potential development in Town. Continue 4.7 Continue to support the County of Santa Clara’s Continuum of Care plan, as well as the “Housing 1000” campaign by Destination: Home. The Town continues to support Santa Clara County's Continuum of Care Plan. Continue 4.8 The Town shall amend the Town Code within one year of the Housing Element adoption to be consistent with the Employee Housing Act. The Town will comply with State Law if a project is proposed, or an issue comes up before the Town Code is amended. Continue 5.1 Provide regularly updated senior housing resource materials at the Adult Recreation Center. Senior resource materials are updated when necessary. Continue 6.1 Regularly review Town planning and zoning regulations and remove affordable housing development constraints as appropriate. The Town's Housing Element contains a number of items that limit or remove constraints. Continue 6.2 Continue to enforce Section 29.10.505–530 of the Town Code to ensure equal access to housing for persons with disabilities under the Fair Housing Act and provide specific procedures for requesting and granting reasonable accommodations. This has not yet been completed. Continue 6.3 Remove constraints to housing for persons with disabilities and encourage accessible housing in new residential developments. Removal of constraints is considered when necessary. Continue 6.4 Give priority to special needs housing by allowing for reduced processing time and streamlined procedures for such appropriate zoning/land use applications. If a project of this nature is submitted it will be given priority. Continue 6.5 Include preferential handling of special needs populations in management plans and regulatory agreements of funded projects. Will be considered when plans are adopted, and projects are funded. Continue 5. Review of Previous Housing Element December 2021 Draft 2023-2031 Housing Element 5-7 No. Programs/Actions [The text provided in this column is a synopsis only; for complete program language refer to the 2015 Housing Element] Achievements/Effectiveness Continue/Modify/ Delete 6.6 Explore opportunities to work with local and/or regional partners to provide rental assistance for persons with developmental challenges. The Town will explore opportunities with local and/or regional partners during the Housing Element update process. Continue 6.7 Consider development of universal design enhancements to existing design guidelines and standards to encourage the inclusion of universal design features in new construction. Periodically study every two years and adopt as appropriate specific revisions or amendments to the Town’s development documents as part of the Town Building Code. The Town considers enhancements to universal design and the Town requires universal design features in new construction consistent with Building Code requirements. Continue 6.8 Increase awareness of universal design principles by periodically educating the Town Council, Commissions, and Boards about universal design and making information available to residents and builders at the Community Development Counter. The Town takes appropriate actions to increase awareness of universal design principles. Continue 6.9 Continue to work with the local California Department of Developmental Services Regional Center to continue to inform families within Los Gatos on housing and services available for persons with developmental challenges. The Town works with the California Department of Developmental Services to inform citizens of available services. Continue 6.10 On a biannual basis, continue to review, evaluate, update, and streamline as necessary, the development process for housing developments that will guarantee affordable units on a long-term basis for very low-, low-, and moderate-income households. The Town considers improvements to the development review process for affordable housing projects when they are proposed. Continue 7.1 Continue to enforce State of California Title 24 requirements for energy conservation. The Town enforces Title 24 requirements. Continue 8.1 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. The Town prepares an annual housing report. Continue 8.2 Continue to fund staff for the management and planning of housing programs and funding for the Town. The Town has contracted with HouseKeys to administer our affordable housing program and has staff that dedicate time to the Town’s affordable housing program. Continue Draft 2023-2031 Housing Element December 2021 Draft 2023-2031 Housing Element 5-8 No. Programs/Actions [The text provided in this column is a synopsis only; for complete program language refer to the 2015 Housing Element] Achievements/Effectiveness Continue/Modify/ Delete 8.3 Deliver the adopted Housing Element to the San Jose Water Company and the West Valley Sanitation District. Town staff regularly work with the San Jose Water Company and West Valley Sanitation District on upgrades to their infrastructure and they are involved in development applications and environmental review. Continue 5. Review of Previous Housing Element December 2021 Draft 2023-2031 Housing Element 5-9 Production of Housing The 2015 Housing Element identified a Regional Housing Needs Allocation of 619 housing units in Los Gatos between January 1, 2015 and June 30, 2023. The RHNA was divided into the following income categories: ▪ 100 units affordable to extremely low-income households; ▪ 101 units affordable to very low-income households; ▪ 112 units affordable to low-income households; ▪ 132 units affordable to moderate-income households; and ▪ 174 units affordable to above moderate-income households. As shown in Table A5-2, during the 2015–2023 planning period, 279 new units were added to the Town’s housing stock, achieving almost 45.1 percent of the Town’s RHNA. This indicates that residential growth was slower than anticipated, which may be in part due to the Covid pandemic and cost of land. Units affordable to moderate- and lower-income households that were created during the planning period include density bonus senior rental units (North Forty Phase I), an attached condominium (Union Avenue) and detached townhomes (Knowles Avenue) produced through the BMP program and accessory dwelling units. Table A5-2 Housing Units Produced, 2015-2023 Affordability New Construction Need Housing Units Produced Percent Achieved Extremely Low 100 0 0% Very Low 101 49 48.5% Low 112 3 2.7% Moderate 132 81 61.4% Above Moderate 174 146 83.9% Total 619 279 45.1% SOURCE: HCD Annual Progress Report Dashboard (as of September 20, 2021). NOTE: This table will be updated prior to finalization to account for units through January 1, 2023. Preservation of “At Risk” Units According to the 2015 Housing Element, there were no affordable units at risk of converting to market rate within 10 years from the beginning of the 2015–2023 planning period. Rehabilitation of Existing Units The Town did not rehabilitate any housing units between 2015 and 2023. 5.4 Appropriateness of Goals, Objectives, and Policies The goals, objectives, and policies identified in the 2015 Housing Element were appropriate for the 2015 -2023 timeframe because they directly relate to the program requirements listed by the California Department of Housing and Community Development. As for new construction, the greatest progress was made in producing housing in the Moderate-Income and Above Moderate-Income categories, where the Town permitted approximately 61.4 percent and 83.9 percent of the needed units, respectively. The Town permitted only about a 48.5 percent of its needed Very Low-Income units and less than three percent of its Low-Income units. As was the case in prior years, the cost of housing continued to be high in Los Gatos, making affordable housing difficult to develop in the Los Gatos market. The Town successfully provided the governmental framework to encourage and facilitate affordable housi ng through a continuation of its BMP program and enhanced Accessory Dwelling Unit Ordinance. Draft 2023-2031 Housing Element December 2021 Draft 2023-2031 Housing Element 5-10 5.5 Summary Like many communities, the Town of Los Gatos experienced less development than expected in its 2015 –2023 planning period. Of the 630 units it identified in its table of quantified housing objectives (T able H-3 on page 47 of the 2015 Housing Element), the Town permitted only 279 units (approximately 45.1 percent), most of them for Above Moderate-Income households. Nonetheless, the goals, objectives, policies, and actions in the 2015 –2023 Housing Element complied with State housing law that was in effect at the time and provided proper guidance for housing development in the Town. In the 2023-2031 Housing Element update, objectives for each of the goals will be modified as appropriate to more specifically respond to the current housing environment in Los Gatos. Policies will also be modified as needed to respond to current Housing Element law and existing and anticipated residential development conditions.