Item 2 - Staff Report and Attachments 1 and 2
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: 08/18/2022 ITEM NO: 2 TOWN OF LOS GATOS
HOUSING ELEMENT ADVISORY BOARD REPORT
DATE: August 12, 2022
TO: Housing Element Advisory Board
FROM: Joel Paulson, Community Development Director
SUBJECT: Review and Provide Input on the Initial Public Review Draft of the 2023-2031
Housing Element.
BACKGROUND:
Beginning in October of 2021, the Housing Element Advisory Board (HEAB) has been meeting to
provide guidance on the development of the Housing Element update, has provided a
recommendation on the Draft Site Inventory to Town Council, and has provided an additional
forum for public involvement.
The HEAB has reviewed and provided comments on the following Appendices and sections of
the Initial Draft of the 2023-2031 Housing Element Update:
• Appendix A Affirmative Furthering Fair Housing Report;
• Appendix B Housing Needs Assessment;
• Appendix D Vacant and Available Sites (Draft Site Inventory Adopted by Town
Council on June 7, 2022);
• Appendix E Review of the Previous Housing Element;
• Section 10.5 Goals and Polices; and
• Section 10.6 Implementation Programs.
On June 16, 2022, July 7, 2022, and August 8, 2022 the HEAB discussed and reviewed the draft
Housing Element Goals, Policies, and Implementation Programs.
At the August 8, 2022, meeting the HEAB provided staff the following direction and
modifications to the draft Goals, Policies, and Implementation Programs:
1. Add a new Implementation Program which studies the development of a new floor area
ratio standard for multi-family development when developed as detached single-family
condominium units.
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Housing Element August 12, 2022
BACKGROUND (continued):
2.Update Implementation Program P – Include studying the feasibility of requiring BMPs for
senior assisted living, senior independent living, and senior communities.
3.Add a Policy and Implementation Program to support affordable housing on land owned by
religious institutions. See Yorba Linda Policy 3.5 and Folsom example.
4.Add an Implementation Program related to a yearly meeting between staff and housing
developers to discuss constraints and opportunities to affordable and market rate housing
projects. (Policy HE-2.9)
5.Remove Policy HE-1.5.
6.Move Policy HE-6.5 to be under Goal HE-1 and add reference to Senate Bill (SB) 9.
7.Modify Policy HE-6.5 under Goal HE-6 to promote and conduct education and outreach for
single-family housing opportunities including ADUs and SB 9.
8.Add Implementation Program for educational programs for single-family housing
opportunities including ADUs and SB 9.
9.Add plural to “property owner” on Policy HE-2.10.
10.Move Policy HE-3.5 to be the first policy under Goal HE-3 and shift other policies down.
11.Modify Policy HE 3.4, add “and alternative funding” to facilitate affordable housing.
12.Modify Policy HE-3.3 to add “educate and encourage” before “support” lot consolidation,
and add the term” lot assemblage,” and add a reference to locations in mixed-use and
commercial areas.
13.Modify Policy HE-4.4 to replace the term City with Town.
14.Modify Implementation Program V to reduce total length.
15.Update language in Implementation Program O for consistency with modifications to Policy
HE-3.3.
16.Add reference to Policy HE-1.7 Universal Design in “Implements Which Policies” column for
Implementation Program AC.
17.Complete language for Implementation Program AT.
The Committees comments and direction have been incorporated into Section 10.5, Goals and
Polices and Section 10.6, Implementation Programs of the Initial Draft of the 2023-2031 Housing
Element Update (Attachment 1).
DISCUSSION:
The purpose of this meeting is to review and provide input on the Initial Public Review Draft of
the 2023-2031 Housing Element Update document prior to releasing the document for the
required 30-day public comment period. On or before September 1, 2022, the Town of Los
Gatos will release Public Review Draft for a 30-day public comment period. A 30-day public
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PAGE 3 OF 4 SUBJECT: Review and Provide Input on the Initial Public Review Draft of the 2023-2031
Housing Element August 12, 2022
DISCUSSION (continued):
comment period of the Initial Draft of the 2023-2031 Housing Element Update is required
before the Town can submit the Initial Draft Housing Element to HCD for preliminary review.
As stated above, the Committee has reviewed and provided comments on the majority of the
Initial Public Review Draft of the 2023-2031 Housing Element. The Committee will be reviewing
the following sections for the first time (Attachment 1):
•Section 10.1 Introduction
•Section 10.2 Overview of Housing Need and Constraints
•Section 10.3 Site Inventory and Opportunities
•Section 10.4 Energy and Resource Conservation
•Appendix C Governmental and Non-Governmental Constraints
•Appendix F List of Organizational Contacts
•Appendix G AFFH Segregation Report for Los Gatos
The following questions are provided to guide the HEAB in their discussion on the proposed
draft Initial Public Review Draft of the 2023-2031 Housing Element.
1.Is there content that should be added, removed, or revised?
2.Have the previous comments been adequately addressed?
The discussion at this meeting is intended to be a confirmation that previous comments have
been addressed, and to provide comment on the new sections of the Initial Public Review Draft
of the 2023-2031 Housing Element Update. Because of the constrained timeline, this should be
a “fatal flaws” review.
All suggestions for changes to the Initial Public Review Draft of the 2023-2031 Housing Element
Update, whether from HEAB members or the public, that are received by 11:00 a.m. on
Wednesday, August 17, 2022, will be provided to the HEAB in an Addendum Report that
afternoon so that proposed changes can be considered by all HEAB members prior to the
meeting. Any comments received after that time, but before 11:00 a.m. on the day of the
meeting will be provided in a Desk Item Report.
Staff will continue their review of the Initial Public Review Draft of the 2023-2031 Housing
Element prior to the HEAB meeting and during the 30-day public review period prior to
submittal to HCD.
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Housing Element August 12, 2022
NEXT STEPS:
The HEAB’s comments will be included in the Public Review Draft Housing Element prior to
publication. If the comments are extensive, they will be incorporated into the revised draft
Housing Element following the 30-day public comment period. On or before September 1,
2022, the Town of Los Gatos will release the Public Review Draft Housing Element for a 30-day
public comment period, followed by at least 10 business days to consider and incorporate
public comments prior to submittal to HCD for their first preliminary review.
The next HEAB meeting is scheduled to meet on September 15, 2022, to provide an opportunity
for the HEAB and the public to provide comments during the 30-day public review period.
Following HCD review, an updated draft Housing Element addressing HCD comments will be
prepared. Once the draft Housing Element has been updated to address HCD comments it will
be scheduled for further review by the HEAB.
PUBLIC COMMENTS:
Attachment 2 includes public comments received between 11:01 a.m., Thursday, August 4,
2022, and 11:00 a.m. on Friday, August 12, 2022.
ATTACHMENTS:
1.Initial Public Review Draft of the 2023-2031 Housing Element Update
2.Public Comments received between 11:01 a.m., Thursday, August 4, 2022, and 11:00 a.m.
on Friday, August 12, 2022
Public Review Draft
September 1 , 2022 - September 30, 2022
Prepared by
EMC Planning Group
ATTACHMENT 1
This document was produced on recycled paper.
PUBLIC REVIEW DRAFT
T OWN OF LOS G ATOS
6 TH C YCLE 2023-2033 HOUSING E LEMENT
P UBLIC C OMMENT P ERIOD
S EPTEMBER 1, 2022 – S EPTEMBER 30, 2022
PREPARED FOR
Town of Los Gatos
Erin Walters, Associate Planner
Community Development Department
110 E. Main Street
Los Gatos, CA 95030
Tel 408.354.6867
PREPARED BY
EMC Planning Group Inc.
601 Abrego Street
Monterey, CA 93940
Tel 831.649.1799
Fax 831.649.8399
Ande Flower
flower@emcplanning.com
www.emcplanning.com
September 1, 2022
Table of Contents
August 2022 Initial Draft 2023-2031 Housing Element i
10. Housing Element ......................................................................................................... 10-1
10.1 Introduction .............................................................................................................. 10-1
10.1.1 California Housing Crisis .......................................................................................... 10-2
10.1.2 Regional Housing Needs Assessment. ..................................................................... 10-2
10.1.3 Affirmative Furthering Fair Housing ....................................................................... 10-3
10.1.4 Overview of Planning and Legislative Efforts .......................................................... 10-5
10.1.5 Public Participation .................................................................................................. 10-7
10.2 Overview of Housing Needs and Constraints ............................................................ 10-13
10.2.1 Introduction ........................................................................................................... 10-13
10.2.2 Los Gatos Overview. .............................................................................................. 10-13
10.2.3 Demographics ....................................................................................................... 10-13
10.2.4 Household Characteristics ..................................................................................... 10-15
10.2.5 Housing Stock Characteristics ................................................................................ 10-17
10.2.6 Special Housing Needs ........................................................................................... 10-18
10.2.7 Governmental and Non-Governmental Constraints ............................................. 10-20
10.3 Site Inventory and Opportunities ............................................................................. 10-20
10.3.1 Introduction ........................................................................................................... 10-21
10.3.2 Sites Summary. ...................................................................................................... 10-21
10.4 Energy and Resource Conservation .......................................................................... 10-22
10.4.1 Opportunities for Energy Conservation ................................................................. 10-22
10.4.2 Energy-Related Goals and Policies. ....................................................................... 10-22
10.5 Goals and Policies ................................................................................................... 10-23
10.6 Implementation Programs ....................................................................................... 10-28
Appendices
Appendix A Affirmatively Furthering Fair Housing Reports
Appendix B Housing Needs Assessment
Appendix C Governmental and Non-Governmental Constraints
Appendix D Vacant and Available Sites
Appendix E Review of Previous Housing Element
Appendix F List of Organizations Contacts
Appendix G AFFH Segregation Report Los Gatos
Acknowledgment Page Place Holder
10
6th Cycle Housing Element
July 2022 Initial Draft 2023-2031 Housing Element 10-1
This 2023-2031 Housing Element represents the Town of Los Gatos' intent to plan for the housing needs of the
Los Gatos community while meeting the State's housing goals as set forth in Article 10.6 of the California
Government Code. The California State Legislature has identified the attainment of a decent home and a suitable
living environment for every Californian as the State's major housing goal. The Los Gatos Housing Element
represents a sincere and open-minded effort to meet local and regional housing needs within the constraints of a
fully established built-out community, limited land availability, and extraordinarily high costs of land and housing.
The Housing Element serves as Chapter 10 of the Town’s 2040 General Plan.
A copy of the Town’s 2015-2023 Housing Element can be found at this link:
https://www.losgatosca.gov/1735/General-Plan---Housing-Element
10.1 Introduction
Pursuant to State law, the Housing Element must be updated periodically according to statutory deadlines. This
6th Cycle Housing Element covers the planning period 2023 through 2031 and replaces the Town's 5th Cycle
Housing Element that covered the period 2015 through 2023.
Per State Housing Element law, the document must be periodically updated to:
Outline the community’s housing production objectives consistent with State and regional growth
projections.
Describe goals, policies, and implementation strategies to achieve local housing objectives.
Examine the local need for housing with a focus on special needs populations.
Identify adequate sites for the production of housing serving various income levels.
Analyze potential constraints to new housing production.
Evaluate the Housing Element for consistency with other General Plan elements.
Evaluate Affirmatively Furthering Fair Housing.
10.1.1 California’s Housing Crisis
The 6th Cycle Housing Element update comes at a critical time because California is experiencing a housing
crisis. As is the case for all jurisdictions in California, Los Gatos must play its part in meeting the demand for
housing. In the last Housing Element cycle (2015 to 2023), Los Gatos’ Regional Housing Needs Allocation
(RHNA) called for 619 new housing units; however, as of December 31, 2021 only 81 percent of these housing
units have been constructed (502 units). Of those that were constructed, the large majority were affordable only
Intial Draft 2023-2031 Housing Element
10-2 Initial Draft 2023-2031 Housing Element August 2022
to households making more than the Town’s area median income. In 2022, this amounted to $168,500 for a
family of four.
Without immediate action, the housing crisis will only get worse. In the 20-year period (2020 to 2040), Santa Clara
County is projected to add 169,450 jobs, which represents a 15 percent increase. Los Gatos, itself, is projected
to add nearly 1,030 jobs in the same period, a five percent increase. These changes will increase demand for
housing across all income levels. The Town and region must identify ways to significantly increase housing
production, or risk worsening the burden for existing lower income households. Many lower income households
do not have the means to move to new a job center, and are faced with unsustainable increases in housing cost.
The lack of affordable housing has constrained the Silicon Valley economy as well-educated workers have
become increasingly mobile in searching for better jobs and a higher quality of life.
If Los Gatos and the region become less competitive in attracting high-skilled workers and increasingly
unaffordable to lower income workers and seniors, then social and economic segregation will worsen, only
exacerbating historic patterns of housing discrimination, racial bias, and segregation. This potentiality has
become so acute in recent years that the California Legislature addressed the issue with new legislation in 2018.
SB 686 requires all State and local agencies to explicitly address, combat, and relieve disparities resulting from
past patterns of housing segregation to foster more inclusive communities. This is commonly referred to as
Affirmative Furthering Fair Housing (AFFH). The legislation applies to all Housing Elements revised after January
1, 2021.
10.1.2 Regional Housing Needs Allocation
The Plan Bay Area 2050 Final Blueprint forecasts that the nine Bay Area counties will add 1.4 million new
households between 2015 and 2050. For the eight-year time frame covered by this Housing Element Update, the
Department of Housing and Community Development (HCD) has identified the region’s housing need as 441,176
units. The total number of housing units assigned by HCD is separated into four income categories that cover
housing types for all income levels, from very low-income households to market rate housing.1 This calculation,
known as the Regional Housing Needs Determination (RHND), is based on population projections produced by
the California Department of Finance as well as adjustments that incorporate the region’s existing housing need.
Almost all jurisdictions in the Bay Area received a larger RHNA this cycle compared to the last cycle, primarily due
to changes in State law that led to a considerably higher RHND compared to previous cycles.
On January 12, 2022, HCD approved the Association of Bay Area Government’s (ABAG) adopted RHNA
Methodology. For Los Gatos, the RHNA to be planned for this cycle is 1,993 units, an increase from the last
cycle. Table 10-1 shows the RHNA, including breakdown by affordability levels, for Los Gatos for the period 2023
through 2031.
1 HCD divides the RHND into the following four income categories:
Very Low income: 0-50% of Area Median Income
Low income: 50-80% of Area Median Income
Moderate income: 80-120% of Area Median Income
Above Moderate income: 120% or more of Area Median Income
10. Housing Element
August 2022 Initial Draft 2023-2031 Housing Element 10-3
Table 10-1 Regional Housing Needs Allocation
Income Group Percentage of AMI Share
Extremely Low Income 0-30 268
Very Low Income 31-50 269
Low Income 51-80 310
Moderate Income 81-120 320
Above Moderate Income 121 + 826
Total 1,993
10.1.3 Affirmatively Furthering Fair Housing
In 2018, Assembly Bill (AB) 686, established an independent State mandate to AFFH. AB 686 extends
requirements for federal grantees and contractors to “affirmatively further fair housing,” including requirements in
the federal Fair Housing Act, to public agencies in California. Affirmatively furthering fair housing is defined
specifically as taking meaningful actions that, taken together, address significant disparities in housing needs and
in access to opportunity by replacing segregated living patterns with truly integrated and balanced living patterns;
transforming racially and ethnically concentrated areas of poverty into areas of opportunity; and fostering and
maintaining compliance with civil rights and fair housing laws.
AB 686 requires public agencies to:
Administer their programs and activities relating to housing and community development in a manner to
affirmatively further fair housing.
Not take any action that is materially inconsistent with the obligation to affirmatively further fair housing.
Ensure that the program and actions to achieve the goals and objectives of the Housing Element
affirmatively further fair housing.
Include an assessment of fair housing in the Housing Element.
The requirement to AFFH is derived from The Fair Housing Act of 1968, which prohibited discrimination
concerning the sale, rental, and financing of housing based on race, color, religion, national origin, or sex—and
was later amended to include familial status and disability. The 2015 U.S. Department of Housing and Urban
Development (HUD) Rule to Affirmatively Further Fair Housing and the California AB 686 (2018) both mandate
that each jurisdiction takes meaningful action to address significant disparities in housing needs and access to
opportunity. AB 686 requires that jurisdictions incorporate AFFH into their Housing Elements, which includes
inclusive community participation, an assessment of fair housing, a site inventory reflective of AFFH, and the
development of goals, policies, and programs to meaningfully address local fair housing issues.
An exhaustive AFFH analysis was prepared by Root Policy Research and is included as an appendix to this
Housing Element (see Appendix A).
Defining Segregation
Segregation is the separation of different demographic groups into different geographic locations or communities,
meaning that groups are unevenly distributed across geographic space. This report examines two spatial forms
of segregation: neighborhood level segregation within a local jurisdiction and Town level segregation between
jurisdictions in the Bay Area.
Neighborhood level segregation (within a jurisdiction, or intra-Town): Segregation of race and income groups can
occur from neighborhood to neighborhood within a Town. For example, if a local jurisdiction has a population that
Intial Draft 2023-2031 Housing Element
10-4 Initial Draft 2023-2031 Housing Element August 2022
is 20 percent Latinx, but some neighborhoods are 80 percent Latinx while others have nearly no Latinx residents,
that jurisdiction would have segregated neighborhoods.
Town level segregation (between jurisdictions in a region, or inter-jurisdiction): Race and income divides also
occur between jurisdictions in a region. A region could be very diverse with equal numbers of White, Asian,
Black, and Latinx residents, but the region could also be highly segregated with each jurisdiction consisting solely
of one racial group.
There are many factors that have contributed to the generation and maintenance of segregation. Historically,
racial segregation stemmed from explicit discrimination against people of color, such as restrictive covenants,
redlining, and discrimination in mortgage lending. This history includes many overtly discriminatory policies made
by federal, State, and local governments. Segregation patterns are also affected by policies that appear race-
neutral, such as land use decisions and the regulation of housing development.
Segregation has resulted in vastly unequal access to public goods such as quality schools, neighborhood
services and amenities, parks and playgrounds, clean air and water, and public safety. This generational lack of
access for many communities, particularly people of color and lower income residents, has often resulted in poor
life outcomes, including lower educational attainment, higher morbidity rates, and higher mortality rates.
Segregation Patterns in the Bay Area
Across the San Francisco Bay Area, White residents and above moderate-income residents are significantly more
segregated from other racial and income groups (see Appendix B). The highest levels of racial segregation occur
between the Black and White populations. The analysis completed for this report indicates that the amount of
racial segregation both within Bay Area cities and across jurisdictions in the region has decreased since the year
2000. This finding is consistent with recent research from the Othering and Belonging Institute at UC Berkeley,
which concluded that, “[a]lthough seven of the nine Bay Area counties were more segregated in 2020 than they
were in either 1980 or 1990, racial residential segregation in the region appears to have peaked around the year
2000 and has generally declined since.” However, compared to cities in other parts of California, Bay Area
jurisdictions have more neighborhood level segregation between residents from different racial groups.
Additionally, there is also more racial segregation between Bay Area cities compared to other regions in the State.
Segregation and Land Use
It is difficult to address segregation patterns without an analysis of both historical and existing land use policies
that impact segregation patterns. Land use regulations influence what kind of housing is built in a County, City,
Town, or neighborhood. These land use regulations in turn impact demographics: they can be used to affect the
number of houses in a community, the number of people who live in the community, the wealth of the people who
live in the community, and where within the community they reside. Given disparities in wealth by race and
ethnicity, the ability to afford housing in different neighborhoods, as influenced by land use regulations, is highly
differentiated across racial and ethnic groups. ABAG and the Metropolitan Transportation Commission (MTC)
plan to issue a separate report detailing the existing land use policies that influence segregation patterns in the
Bay Area.
Segregation in Town of Los Gatos
As of 2020, White residents are the most segregated compared to other racial groups in Los Gatos, as
measured by the isolation index. White residents live in neighborhoods where they are less likely to come
into contact with other racial groups.
Among all racial groups, the White population’s isolation index value has changed the most over time,
becoming less segregated from other racial groups between 2000 and 2020.
10. Housing Element
August 2022 Initial Draft 2023-2031 Housing Element 10-5
According to the dissimilarity index, within Los Gatos the highest level of racial segregation is between
Black and White residents 2. However, this dissimilarity index 3 value is not a reliable data point due to
small population size.
According to the Theil’s H-Index,4 neighborhood racial segregation in Los Gatos increased between 2010
and 2020. Neighborhood income segregation stayed about the same between 2010 and 2015.
Above moderate-income residents are the most segregated compared to other income groups in Los
Gatos. Above moderate-income residents live in neighborhoods where they are less likely to encounter
residents of other income groups.
Among all income groups, the above moderate-income population’s segregation measure has changed
the most over time, becoming less segregated from other income groups between 2010 and 2015.
According to the dissimilarity index, segregation between lower income residents and residents who are
not lower income has increased between 2010 and 2015. In 2015, the income segregation in Los Gatos
between lower income residents and other residents was higher than the average value for Bay Area
jurisdictions.
Regional Segregation
Los Gatos has a higher percentage of White residents than other jurisdictions in the Bay Area as a whole,
a lower percentage of Latinx residents, a lower percentage of Black residents, and a lower percentage of
Asian and Pacific Islander residents.
Regarding income groups, Los Gatos has a lower percentage of very low-income residents than other
jurisdictions in the Bay Area as a whole, a lower percentage of low-income residents, a lower percentage
of moderate-income residents, and a higher percentage of above moderate-income residents.
10.1.4 Overview of Planning and Legislative Efforts
This section provides an overview of planning and legislative efforts that provide the context for development of
the 6th Cycle Housing Element.
2040 General Plan
The preparation of the Los Gatos 6th Cycle Housing Element update is occurring while the Town is updating its
General Plan and accompanying Environmental Impact Report (EIR). The overlap in preparation of the General
Plan Update has allowed the Housing Element update to utilize the increases in the allowable density, floor area
ratio, and height from the recently adopted 2040 General Plan to assist in meeting the Town’s RHNA requirement.
Effectiveness of Previous Housing Element
The Town of Los Gatos 5th Cycle Housing Element (2015 to 2023) identified a RHNA of 619 housing units
between January 1, 2015, and June 30, 2023. As of December 31, 2021, 511 new units were added to the
Town’s housing stock in this cycle, achieving approximately 83 percent of the Town’s RHNA. 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), detached townhomes
(Knowles Avenue) produced through the Town’s Below Market Program (BMP), and accessory dwelling units
2 The analysis conducted for this report suggests that dissimilarity index values are unreliable for a population group if that
group represents approximately less than 5% of the jurisdiction’s total population. ABAG/MTC recommends that when
cities have population groups that are less than 5% of the jurisdiction’s population (see Figure B-4 in Appendix B) the
assessment could focus on the isolation index or Thiel’s H-Index to gain a more accurate understanding of neighborhood-
level racial segregation in their jurisdiction.
3 The “index of dissimilarity” is the most commonly used and accepted method of measuring segregation, and compares
how evenly one population sub-group is spread out geographically compared to another population sub-group
4 The Theil H-Index is a statistic primarily used to measure economic inequality and other economic phenomena.
Intial Draft 2023-2031 Housing Element
10-6 Initial Draft 2023-2031 Housing Element August 2022
(ADU). See Appendix E for a complete review and analysis of Los Gatos’s 5th Cycle Housing Element (2015-
2023).
New State Laws Affecting Housing
While the Town has taken steps throughout the 5th cycle to increase housing production locally, the State passed
numerous laws to address California’s housing crisis during the same period. As the State passes new legislation
in the remainder of the 5th cycle and during the 6th cycle, the Town will continue to amend the Municipal Code; to
monitor and evaluate policies and programs designed to meet State requirements; and to proactively implement
new policies and programs to help increase housing production in the Town.
In 2019, several bills were signed into law that include requirements for local density bonus programs, the
Housing Element, surplus lands, ADU streamlining, and removing local barriers to housing production. The Town
will implement changes required by State law, through amendments to the Los Gatos Municipal Code. The
following is a summary of recent legislation and proposed Town activities that will further the Town’s efforts to
increase housing production during the 6th cycle. Please see the section above for a discussion of AB 686
(Affirmatively Furthering Fair Housing).
Streamlining for Subdividing Single-Family Lots
SB 9, the California Housing Opportunity and More Efficiency (HOME) Act, streamlines the process for a
homeowner to create a duplex or subdivide an existing lot. Any new housing created as a result of this bill must
meet a specific list of qualifications that protects historic districts, preserves environmental quality and the look of
communities, and prevents tenants from being displaced. This legislation will enable homeowners to create
intergenerational wealth, and provide access to more rental and ownership options for working families who would
otherwise be priced out of neighborhoods.
Incentive for Accessory Dwelling Units
AB 68, AB 587, AB 671, AB 881, and SB 13 further incentivize the development of ADUs, through streamlined
permits, reduced setback requirements, increased allowable square footage, reduced parking requirements, and
reduced fees. The Town has amended its regulations and procedures to make it easier and less expensive to
build ADUs during the 5th Cycle Housing Element by, for example, exempting ADUs from parking requirements
and certain fees.
Density Bonus Update
AB 1763 requires jurisdictions to provide a density bonus to development projects that restrict 100 percent of their
units as affordable to lower and moderate-income households. In 2020, the Town’s affordable housing
regulations were amended to be consistent with AB 1763.
Objective Standards for Multi-Family and Mixed-Use Development Applications
The Town of Los Gatos is developing objective standards for the review of multi-family housing and mixed-use
development applications. This effort is in response to State legislation requiring jurisdictions to adopt objective
standards and to implement them in a streamlined review of qualifying housing projects. Objective standards are
defined under State law as “standards that involve no personal or subjective judgement by a public official and are
uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by
both the development applicant or proponent and the public official prior to submittal” (California Government
Code, Section 65913.4). Objective standards are a powerful tool that allow communities to respond to State
housing laws that are reducing local control of development. They provide an opportunity to ensure that the
appearance of new development is compatible with the Town’s vision.
Low-Barrier Navigation Centers
A "Low Barrier Navigation Center" is a low-barrier, service-enriched shelter focused on moving people into
permanent housing that provides temporary living facilities while case managers connect individuals experiencing
homelessness to income, public benefits, health services, shelter, and housing. AB 101 requires jurisdictions to
10. Housing Element
August 2022 Initial Draft 2023-2031 Housing Element 10-7
allow “low-barrier navigation centers” by-right in areas zoned for mixed-uses and in non-residential zones
permitting multi-family uses, if the center meets specified requirements.
Surplus Public Land
AB 1255 and AB 1486 seek to identify and prioritize State and local surplus lands available for housing
development affordable to lower income households. The Town has identified surplus lands through the
adequate sites inventory of the 6th Cycle Housing Element and will report on these lands annually through the
Housing Element Annual Progress Reports.
Accelerated Housing Production
AB 2162 and SB 2 address various methods and funding sources that jurisdictions may use to accelerate housing
production.
Priority Processing
SB 330 enacts changes to local development policies, permitting, and processes that will be in effect through
January 1, 2025. SB 330 places new criteria on the application requirements and processing times for housing
developments; prevents localities from decreasing the housing capacity of any site, such as through downzoning
or increasing open space requirements, if such a decrease would preclude the jurisdiction from meeting its RHNA
housing targets; prevents localities from establishing non-objective standards; and requires that any proposed
demolition of housing units be accompanied by a project that would replace or exceed the total number of units
demolished. Additionally, any demolished units that were occupied by lower income households must be
replaced with new units affordable to households with those same income levels.
Housing and Public Safety
In response to SB 379, SB 1035 (2018), SB 99, and AB 747, local jurisdictions must update their Safety Element
to comprehensively address climate adaptation and resilience and identify evacuation routes. These updates are
triggered by any General Plan or Housing Element Update that occurs after January 1, 2014. The Town has
conducted this update through its recent General Plan Update, so that it can direct future development into areas
that avoid or reduce unreasonable risks, while also providing needed housing and maintaining other community
planning goals.
10.1.5 Public Participation
The primary purpose of this section is to describe the effort made by the Town of Los Gatos to engage all
economic segments of the community (including residents and/or their representatives) in the development and
update of the Housing Element. The 6th cycle RHNA numbers are a significant change for all California
communities, and the success of the update process is dependent on the community outreach and engagement
program being robust, inclusive, and meaningful. The COVID-19 pandemic has complicated community outreach
efforts, but the pandemic has also catalyzed the development of new digital tools that have brought interactive
engagement to a new level. The following section outlines efforts taken by the Town of Los Gatos to engage the
community in the Housing Element Update process. The summary below illustrates the efforts that that Town has
employed to reach the community for input and community engagement as part of the 2023-2031 Housing
Element Update process to date:
17 newspaper ads published about the Housing Element Update.
Over 100 social media posts on five platforms, including Facebook, Instagram, Twitter, NextDoor, and the
What’s New page on Town’s website.
Online advertisements for each Housing Element meeting and the interactive on-line engagement
opportunities on the Town’s website, the Town’s General Plan Update website, and the Town’s Housing
Element website.
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17,446 notice cards sent to all property owners in the Town for a Housing Element Update community
meeting.
Public notices for Housing Element Advisory Board (HEAB) meetings and Community Meetings posted at
Town Hall and the Library.
15 pop-up informational tables at the Los Gatos Farmers Market.
100 Property Owner Interest Forms were sent to property owners listed in the Draft Site Inventory list.
Seven presentations at community group meetings for the 2040 General Plan Update.
2,449 sign-ups to receive email notifications about the 2040 General Plan Update, including the Housing
Element Update.
3,605 visitors to EngageLosGatosHousing.com since its creation in December 2021.
201 submissions to the online site surveys and 42 people completed the Balancing Act housing simulation
tool.
Staff expects to continue this level of outreach and engagement throughout the remainder of the Housing Element
Update process including: information on the Town’s website; newspaper ads; social media posts; email
notifications; notice cards sent to all residents in Town for key events; a pop-up table at the farmers market,
library, and public events; community workshops; presentations at community group meetings; and a custom
website for the Housing Element Update (engagelosgatoshousing.com).
Housing Element Advisory Board
On August 3, 2021, the Los Gatos Town Council adopted Resolution 2021-032 establishing the HEAB to serve as
an advisory board for preparation of the Housing Element Update. On September 21, 2021, the Town Council
appointed four at-large members to the HEAB, which when combined with the nine members from the existing
General Plan Committee (GPC), formed a 13-member oversight board.
Housing Element Website
The Town developed a focused Housing Element Update website “Engage Los Gatos Housing” to provide a
forum for the Town’s online community to engage in the Housing Element Update process. The site provides an
interactive place for the public to learn about and be a part of the Town’s work on housing and to help guide
decision makers on the direction of future housing. This online platform has been open throughout the Town’s 6th
cycle Housing Element Update and updated regularly with key documents, key meeting dates and times,
engagement opportunities, and other information.
Balancing Act Online Public Engagement
The Balancing Act tool was available on the Town’s Housing Element website to allow the public to patriciate and
provide site selection feedback on the online platform. The Balancing Act is an online simulation-based tool for
public engagement on potential housing sites. The Balancing Act provided an interactive map showing where
potential housing could be placed to fulfill the Town’s RHNA.
Site Surveys Online Public Engagement
As a companion to the Balancing Act mapping tool opportunity to gather public comments about potential housing
sites, surveys were made available for each individual site. The dedicated Housing Element update website
(engagelosgatoshousing.com) included opportunities to learn more about the Housing Element update process
and how to contribute to the process.
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August 2022 Initial Draft 2023-2031 Housing Element 10-9
Property Interest Forms
Letters were sent to owners of property that were considered by the Town to be candidate housing sites. The
letters included a description of the Housing Element update process and an invitation to include their property
with the Sites Inventory List.
Community Meetings
On August 25, 2021, Town staff participated with other municipalities as part of the Santa Clara County Housing
Collaborative to conduct the Let’s Talk Housing meeting, a regional outreach effort. The online event introduced
community participates to the Housing Element Update process. Town staff presented an introduction to the
Housing Element Update and hosted a breakout Zoom room discussions to learn more about community
members housing experiences, needs challenges and opportunities. There were 35 participants.
On March 2, 2022, West Valley Community Services (WVCS) hosted an online community engagement event,
Envisioning an Inclusive Los Gatos: Housing Element 101. The online event provided an opportunity for the
public to discuss with panelist opportunities for the Town to improve the housing community for everyone,
ensuring inclusive, diverse, and affordable housing in Town. Community members, Housing Element experts,
nonprofits, housing developers, and clients with lived experience of homelessness and affordable housing joined
the conversation, discussing housing challenges, opportunities, and personal experiences. The featured
panelists included:
Ande Flower, Principal Planner at EMC Planning Group.
Alison Cingolani, Policy and Research Associate at SV@Home.
A representative housing developer.
Two WVCS Clients.
Housing Element Advisory Board Public Meetings (HEAB)
The HEAB is an advisory board created for the purposes of advising Town staff, providing a public forum for
public involvement, and making recommendations to the Planning Commission and Town Council on updates to
the Housing Element. The HEAB serves as an advisory body that provides input on specific tasks associated
with the Housing Element Update. The role of the HEAB is to:
Provide guidance on the development of the Housing Element Update.
Provide additional forum for public involvement.
Forward milestone products to Town Council.
Review the Draft Housing Element.
Make recommendations to the Planning Commission and Town Council.
The HEAB meeting agendas allow for two opportunities for public comment, at the beginning and end of each
meeting, to provide the public an opportunity to react to the topics proposed and discussed. The public is invited
to participate and provide public comment at the HEAB meetings. Meetings are advertised through social media,
the Town’s website, the Housing Element Update website, newspaper advertisements, postings at Town Hall and
the Library, and emails to the General Plan Notify Me list. The following meetings were held via Zoom with public
participation and will continue through the Housing Element Update process.
October 21, 2021: Kickoff Meeting and Housing Element Overview.
December 16, 2021: Review and Discussion of Technical Appendices.
February 17, 2022: Review and Discuss the Housing Site Inventory Analysis Process.
April 21, 2022: Review and Discussion of the Housing Element Site Inventory.
May 5, 2022: Review and Discussion of the Housing Element Site Inventory.
May 19, 2022: Review and Discussion of the Housing Element Site Inventory.
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June 16, 2022: Review and Discussion of the Housing Element Draft Goals, Policies, and Programs.
July 7, 2022: Review and Discussion of the Housing Element Draft Goals, Policies, and Programs.
August 4, 2022: Review and Discussion of the Housing Element Draft Goals, Policies, and Programs.
August 18, 2022: Review and Discussion of the full preliminary Housing Element Draft.
In addition, the following list of groups has been invited to join the Housing Element Advisory Board Meetings:
Los Gatos Chamber of Commerce.
West Valley Community Services.
Los Gatos Interfaith Community.
Public and Private Schools.
Los Gatos Anti-Racism Coalition.
Los Gatos Rotary Club.
Los Gatos Kiwanis Club.
Los Gatos Lions Club.
Architects, Designers and Market and Affordable Housing Developers who typically do work within Town.
The Town’s Senior Services Committee.
The list of organizations that were contacted to participate in the housing element update process is provided in
Appendix F.
Joint Study Sessions
On December 7, 2021, the Town Council and the Planning Commission held a Joint Study session via Zoom to
discuss housing growth options and related analyses for Planning Commission and Town Council consideration
of the Draft 2040 General Plan Update. The public was encouraged to continue to submit comments and
participate in the Draft 2040 General Plan Update, including any preferences for housing growth options.
April 6, 2022, the Town Council, Planning Commission, and HEAB participated in a Joint Study session via Zoom
titled “Nuts and Bolts of Affordable Housing.” Several residents requested that the Town Council convene a study
session with the Planning Commission and HEAB to learn more about the challenges of building affordable
housing, particularly the financial and legal realities. The residents provided discussion questions to the panel
members. The Town Council, Planning Commission, and HEAB members had opportunity to ask questions of
panel members. The panelists included the following
Josh Selo, West Valley Community Services Executive Director served as moderator for the panel
discussion.
Barbara Kautz, Goldfarb Lipman Attorneys, provided the current legal landscape for Housing Elements.
Don Caprobres, Harmonie Park Development, provided expertise in market rate development and
partnerships with affordable housing developers.
Andrea Osgood, Eden Housing, provided hands-on knowledge of affordable housing development and
working with market rate developers.
Chris Neale, The CORE Companies, provided experience with both market and affordable housing
development.
Public Hearings
On June 7, 2022, the Town Council considered and approved the HEAB’s recommendation for the draft site
inventory at a public hearing via Zoom. There will be more public hearings to come following the first review by
HCD.
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Justice, Diversity, Equity, and Inclusion
The Town of Los Gatos values justice, equity, diversity, and inclusion (JEDI). The Town works proactively to
ensure the rights and opportunities of everyone in Los Gatos and opposes any attempts to undermine the safety,
security, and rights of any members of our community. The Town promotes equal treatment, equitable
distribution of and access to resources, and engagement in issues affecting the lives of residents, workers, and
visitors. The Town does not tolerate discrimination, racial injustice, or police brutality. The Town works toward
realizing the values of diversity, equity, and inclusion by taking specific actions to become a more inclusive
community.
In May of 2017, the Town Council affirmed a commitment to Los Gatos being a diverse, supportive, equitable, and
inclusive community.
On June 5, 2020, the Town affirmed its commitment to stand in solidarity with the black community with a
Proclamation from the Mayor. The Proclamation can be viewed as Attachment 2 to this report.
On June 17, 2020, the Mayor of Los Gatos signed the Obama Foundation’s Mayor’s Pledge, committing to review
Police Department standards, report back to the community, and work on reforms.
On June 19, 2020, the Town launched a new webpage “Becoming an Inclusive Community,” dedicated to
outlining the shared values of justice, diversity, equity, and inclusion. In naming the new webpage “Becoming an
Inclusive Community,” the Town acknowledged that there is work to do and by clearly stating the commitment to
inclusivity and diversity, the Town strives to take the steps needed to reach that goal. The dedicated webpage
can be viewed at www.LosGatosCA.gov/Inclusivity and is kept updated on a regular basis with Town efforts and
current information.
On July 30, 2020, the General Plan Update Advisory Committee (GPAC) held a special meeting to review and
discuss Racial, Social, and Environmental Justice in the General Plan. As a result of this meeting the first
Element of the 2040 General Plan is a new Racial, Social, and Environmental Justice Element.
In 2020, the Town hosted three community workshops via teleconference to foster dialogue on racial and social
justice and how Los Gatos can be more welcoming for all. The three conversations covered police reform,
housing, and the inclusivity webpage contains the full video recordings, presentations, and other information
associated with these conversations.
Pop-up Community Outreach
Farmers Market Informational Booth
Town staff hosted a 2040 General Plan Update and Housing Element Update informational booth at the Los
Gatos Farmers Market on Sundays from 9:00 a.m. to 1:00 p.m. on the following dates:
June 27, 2021.
July 18, 2021.
August 8, 2021.
August 29, 2021.
September 19, 2021.
October 10, 2021.
October 31, 2021.
November 21, 2021.
December 19, 2021.
January 19, 2022.
February 13, 2022.
March 13, 2022.
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April 10, 2022.
May 22, 2022.
June 12, 2022.
The Farmer’s Market is held at the Town’s Plaza Park located in downtown Los Gatos. The informational booth
provided an opportunity for planning staff to answer the public members questions regarding housing
opportunities and challenges within the Town, possible housing sites in Town, the General Plan Update and
Housing Element Update process and key participation dates. Informational handouts were provided to members
of the public with links to the Town’s General Plan Update and Housing Element Update websites. Staff
interacted with members of the community, including both Town residents and non-residents, at the Farmers
Market.
Spring Into Green Informational Booth
On April 24, 2022, Town staff hosted an informational booth for the 2040 General Plan Update and Housing
Element Update at the Town of Los Gatos’ Spring into Green event. The outdoor event celebrates Keep Los
Gatos Beautiful Month, environmental sustainability, and Earth Day. The festivities included environmentally
focused exhibitor booths, a tree planting ceremony, the weekly Los Gatos Farmers Market, family-friendly
activities, food and live music. The informational booth provided an opportunity for Town staff to answer the
public’s questions regarding housing opportunities and challenges within the Town, possible housing sites in
Town, the General Plan update and Housing Element update process and key participation dates.
2040 General Plan Update
On June 30, 2022, the Town Council adopted the 2040 General Plan. As mentioned above, the 2040 General
Plan includes a new chapter: Racial, Social, and Environmental Justice Element. The Racial, Social, and
Environmental Justice Element includes goals, policies, and implementation programs that encourage and
support local efforts to increase participation in the local political process and to improve local conditions relative
to racial, social, and environmental justice issues. The themes covered in this element lay the foundation for
creating a more equitable and inclusive Town for all residents of Los Gatos. The Racial, Social, and
Environmental Justice Element focuses on the empowerment of the community, and especially of the members of
the community who have not been previously heard.
General Plan Update Advisory Committee (GPAC)
To help guide the update to the General Plan, the Town Council appointed a GPAC. The GPAC was composed
of the Town’s GPC and three additional residents. The GPC includes two Town Council members, three Planning
Commissioners, and four residents. The GPAC served to review and discuss issues, opportunities, and the
development the Draft 2040 General Plan. The GPAC held more than 35 public meetings throughout the General
Plan Update process, listening to community input and contributing to the development of Land Use Alternatives,
and the content of the General Plan document.
Public Participation to Affirmatively Furthering Fair Housing
The Los Gatos public participation program was also responsive to AFFH, which requires local jurisdictions to
conduct public outreach to equitably include all stakeholders in the housing element public participation program
(see the discussion above for more complete information on AFFH).
Tribal Consultation
This public participation effort also includes formal consultation, pursuant to Government Code §65352.3, with
representatives from nine Native American tribes that are present and active in the Santa Clara County.
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August 2022 Initial Draft 2023-2031 Housing Element 10-13
10.2 Overview of Housing Needs and Constraints
This section summarizes the housing needs of Los Gatos as determined through the comprehensive housing
data assessment and analysis presented in Appendix B and serves as the basis for housing goals, policies, and
implementation programs. The housing summary gives an overview of population trends; characteristics of the
housing stock; housing affordability; and special needs households.
10.2.1 Introduction
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 housing
opportunities. While the number of people drawn to the region over the past 30 years has steadily increased,
housing production has stalled, due to the high cost of land, contributing to the housing shortage that communities
are experiencing. In many communities, this has resulted in residents being priced out, increased traffic
congestion caused by longer commutes, and fewer people across income levels being able to purchase homes or
meet surging rents.
10.2.2 Los Gatos Overview
As California works to face it’s housing crisis, the State of California has adopted rules to ensure that the burden
of housing an economically diverse and growing population is shared proportionately among all California
communities. The Town is committed to meeting the housing challenge, while preserving the essential character
of the community. The Town faces some of the following conditions as summarized below.
Population growth trends in the Town are significantly lower than the County and regional rates.
The Town has more than double the county share of White population and a correspondingly smaller
percent of minority populations.
The Town has a higher share of high-income earners than the county and Bay Area.
The income gap between lower income residents and higher income residents in the Town is higher than
the average value for Bay Area jurisdictions.
Poverty rates are very low in the Town.
The Town is a net importer of workers.
Housing prices in the Town are extremely high. Home prices are valued at more than $2 million, and rental
prices increased by 61 percent from 2009 to 2019.
The Town does not have any public housing and only a small portion of the Town contains Housing
Choice Voucher usage.
The remainder of this section provides an overview of the demographics, housing characteristics, and special
housing needs that provide the context for Los Gatos’s 6th Cycle Housing Element Update. A more complete
report on housing needs is presented in Appendix B.
10.2.3 Demographics
Population Trends
Generally, the population of the Bay Area continues to grow because of natural growth and because the strong
economy draws new residents to the region. The population of the Town of Los Gatos increased by 10percent
from 2000 to 2020, which is below the 14.8 percent growth rate of the Bay Area. In 2020 the population of the
Town was estimated to be 31,439 according to the Department of Finance. The population of the Town makes up
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10-14 Initial Draft 2023-2031 Housing Element August 2022
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 10-2 shows
population growth trends for the Town, Santa Clara County, and the Bay Area as a whole.
Table 10-2 Population Growth Trends
Geography 1990 1995 2000 2005 2010 2015 2020
Los Gatos 27,357 28,751 28,592 28,872 29,413 30,807 31,439
Santa Clara County 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
Population by Age
The distribution of age groups in a town or city 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 2019, the median age was 47 years, an increase from the median age of 41 in 2000. The youth population of
the Town under the age of 18 was 6,767 and the senior population 65 and older was 6,393. These age groups
represent 22 percent and 20.8 percent, respectively, of the Town’s population. This reflects a nationwide aging
trend related to the large baby boom generation, as well as local characteristics. The Town of Los Gatos is a
community with a high quality of life that encourages residents to stay throughout their lives. Aging in place,
attracting retirees, and high housing costs that favor older, more financially stable households all contribute to the
aging trend in the Town.
Population by Race/Ethnicity
Understanding the racial makeup of a town, city, 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 6.
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.
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. NOTE: Universe: Total population;
For more years of data, please refer to the Data Packet Workbook, Table POPEMP-01.
6 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.
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In 2020, 72.3 percent of the Town’s 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 7.
Employment
Town residents most commonly work in the Financial & Professional Services industry. From January 2010 to
January 2021, the unemployment rate in the Town decreased by three percentage points. 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 has increased from 1.32 in 2002 to 1.59 jobs per household in
2018, which means the Town has more jobs than housing. A surplus of jobs relative to residents suggests the
need to import workers. Los Gatos has more low wage jobs than low wage residents (where low wage refers to
jobs paying less than $25,000). At the other end of the wage spectrum, the Town has more high-wage residents
than high-wage jobs (where high-wage refers to jobs paying more than $75,000).
The Town has more low-wage jobs than low-wage residents (where low-wage refers to jobs paying less than
$25,000 per year), but at the other end of the scale the Town has more high-wage residents than high-wage jobs
(where high-wage refers to jobs paying more than $75,000 per year).
10.2.4 Household Characteristics
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.
In Los Gatos, 65 percent of households make more than 100 percent of the Area Median Income (AMI)8,
compared to nine 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, public safety officers, and healthcare professionals can fall into lower AMI categories due
to relatively stagnant wages in many industries.
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
7 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.
8 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. 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.
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households. In Los Gatos, the largest proportion of both renters and homeowners are found in the greater than
100 percent of AMI group.
People of color are more likely to experience poverty and financial instability as a result of federal and local
housing policies that have historically excluded them from the same opportunities extended to White residents 9.
These economic disparities also leave communities of color at higher risk for housing insecurity, displacement, or
homelessness. In 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.
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, city, and region. Generally,
renters may be displaced more quickly if prices increase. In Los Gatos there are a total of 12,083 housing units,
and fewer residents rent than own their homes: 35 percent versus 65 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.
Homeownership rates often vary considerably across race and 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. In Los Gatos, 84 percent of Black households
owned their homes, while homeownership rates were 72 percent for Asian households, 39 percent for Latinx
households, and 65 percent for White households.
In many communities, homeownership rates for households in single-family homes are substantially higher than
the rates for households in multi-family housing. In Los Gatos, 86 percent of households in detached single-
family homes are homeowners, while 13 percent of households in multi-family housing are homeowners.
Displacement
Because of increasing housing prices, displacement is a major concern in the Bay Area. Displacement has
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 (UC), Berkeley has mapped all neighborhoods in the Bay Area, identifying their risk
for gentrification. They find that in 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. UC Berkeley estimates that all households in Los Gatos live in neighborhoods where low-income
households are likely to be excluded due to prohibitive housing costs 10. Figure 2-18 in Appendix B shows
household displacement risk and tenure.
9 Moore, E., Montojo, N. and Mauri, N., 2019. Roots, Race & Place: A History of Racially Exclusionary Housing the San
Francisco Bay Area. Hass Institute.
10 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
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10.2.5 Housing Stock Characteristics
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 Los Gatos increased, four 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.
Between 2015 and 2021, 502 housing units were issued permits in Los Gatos, which represents approximately 81
percent of the RHNA number of 619 units assigned in the 5th Cycle Housing Element. Approximately 66 percent
of permits issued in Los Gatos were for above moderate-income housing, 24 percent were for moderate-income
housing, and 10 percent were for low- or very low-income housing.
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:
60 percent of homes in Los Gatos were single-family detached.
13 percent were single-family attached.
9 percent were small multi-family (two to four units).
18 percent were medium or large multi-family (five or more units).
Between 2010 and 2020, the number of single-family units increased more than multi-family units. Los Gatos has
a higher portion of detached single-family homes than other jurisdictions in the region.
The housing stock of Los Gatos is generally in good condition, and a few homes require reconstruction or
rehabilitation. The high quality of life, desirable location, walkable neighborhoods, and school system have
provided financial incentive for property owners to rehabilitate homes and maintain them.
Home Prices
A diversity of homes at all income levels would create opportunities for all members of the Los Gatos community
to live in Town.
Ownership – The largest proportion of homes had a value greater than $2 million in 2019. Home prices
increased by 98.4 percent from 2010 to 2020.
Rental Prices – The typical contract rent for an apartment in Los Gatos was $2,270 in 2019. Rental prices
increased by 61 percent from 2009 to 2019. To rent a typical apartment without cost burden, a household
would need to make $90,960 per year 11.
Cost Burden
The U.S. Department of Housing and Urban Development (HUD) 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
Los Gatos, 20 percent of renter households and 16 percent of owner households spend 30 percent to 50 percent
11 Note that contract rents may differ significantly from, and often being lower than, current listing prices.
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of their income on housing, while 22 percent of renter households and 12 percent of owner households are
severely cost burden and use the majority of their income for housing.
People of color are more likely to experience poverty and financial instability as a result of federal 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.
“Other Race” or “Multiple Races, Non-Hispanic” residents are the most cost burdened with 28 percent spending
30 percent to 50 percent of their income on housing, and Hispanic or Latinx residents are the most severely cost
burdened with 22 percent spending more than 50 percent of their income on housing.
Neighborhood
100 percent of residents in Los Gatos live in neighborhoods identified as “Highest Resource” or “High Resource”
areas by State-commissioned research, while none live in areas identified by this research as “Low Resource” or
“High Segregation and 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 12.
10.2.6 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 specific housing circumstances. In Los
Gatos, nine percent of residents have a disability and may require accessible housing. Additionally, six percent of
Los Gatos households are larger households with five or more people, and likely need larger housing units with
three bedrooms or more. Eight percent of households are female-headed families, which are often at greater risk
of housing insecurity.
Large Households
Large households, with five or more persons, often have different housing needs than smaller households. If a
town or city’s rental housing stock does not include larger apartments, large households who rent could end up
living in overcrowded conditions. Large families are generally served by housing units with three or more
bedrooms, of which there are 7,760 units in Los Gatos. Among these large units, most are owner occupied and
few are renter-occupied indicating the Town’s rental housing stock lacks larger apartments.
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. Female-headed households with
children may face particular housing challenges, with 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, the largest proportion of households is Married-Couple Family Households at 58 percent of the
total, while Female-Headed Family Households make up 8 percent of all households. Additionally, 36 Female-
Headed Households with Children fell (eight percent) in the Below Poverty Level category, while 26 Female-
Headed Households without Children (five percent) fell in the Below Poverty Level category.
12 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.
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Senior Households
Senior households often experience a combination of factors that can make accessing or keeping affordable
housing a challenge. Seniors, defined as persons who are 65 years or older, may live on fixed incomes and may
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.
When cost-burdened seniors are no longer able to make house payments or pay rents, displacement from their
homes can occur, putting further stress on the local rental market or forcing residents out of their community.
Understanding how seniors might be cost-burdened is of particular importance due to their special housing needs,
particularly for low-income seniors. Of seniors making less than 30 percent of AMI, 74 percent are spending the
majority of their income on housing. For seniors making more than 100 percent of AMI, 86 percent are not cost-
burdened and spend less than 30 percent of their income on housing.
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, nine percent of people in Los Gatos have a disability of some kind.
State law also requires a Housing Element 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 intellectual disability. 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 13. In Los Gatos, there are 123 persons with a developmental disability. Out of this 9 percent of the
Town’s population
, 50 are children under the age of 18 (41 percent) and 73 are adults (60 percent). The most common living
arrangement for individuals with disabilities in Los Gatos is the home of parent/family/guardian.
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.
13 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.
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In Santa Clara County, the most common type of household experiencing homelessness is those without children
in their care. Among households experiencing homelessness that do not have children, 87 percent are
unsheltered. Of homeless households with children, most are sheltered in emergency shelter.
People of color are more likely to experience poverty and financial instability as a result of federal 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 44 percent of the homeless population, while making up 45 percent
of the overall population.
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 decent and affordable housing can be challenging, particularly in the current housing
market.
In 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 more than two percent in the number of migrant worker
students since the 2016-17 school year. The change at the County level is a 50 percent decrease in the number
of migrant worker students since the 2016-17 school year.
10.2.7 Governmental and Non-Governmental Constraints
Housing development is affected by government regulations and other non-governmental forces, such as the cost
of land and building materials and the availability and the cost of housing loans. A Housing Element is required to
investigate the impact of these constraints as they present themselves in the municipality in which the Housing
Element is being prepared. This subsection provides a brief overview of governmental and non-governmental
constraints in the Town of Los Gatos. Please see Appendix C for a full discussion of housing constraints.
On June 30, 2022, the Town Council adopted the 2040 General Plan. The 2040 General Plan allows for an
increase in the allowable density, floor area ratio, and height in both residential and commercial land use
designations. These changes help offset the increase in the cost of land and building materials and that are
required for the construction of affordable housing.
The Town will update the Zoning Code to be consistent with the 2040 General Plan. In addition, other revisions to
the Zoning Code are necessary to achieve consistency with changes in State housing law. Anticipated zoning
changes are detailed in the implementation programs found at the end of this Housing Element.
In terms of non-governmental constraints, land costs will remain a constraint to affordable housing, and programs
to use Town-owned lands, such as Town parking lots could be utilized. Due to the cost of construction materials,
the Town may choose to subsidize affordable housing projects with available funds dedicated to housing to
increase affordable housing inventory.
10.3 Site Inventory and Opportunities
This section summarizes the housing needs of the Town as determined through the comprehensive housing data
assessment and analysis presented in the Technical Appendix and serves as the basis for housing goals,
policies, and actions. The housing summary gives an overview of population trends, characteristics of the
housing stock, housing affordability and special needs households.
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10.3.1 Introduction
The Plan Bay Area 2050 Final Blueprint 14 forecasts that the nine-county Bay Area will add 1.4 million new
households between 2015 and 2050. For the eight-year time frame covered by this Housing Element Update,
HCD has identified the region’s housing need as 441,176 units. The total number of housing units assigned by
HCD is separated into four income categories that cover housing types for all income levels, from very low-
income households to market rate housing. This calculation, known as the RHNA, is based on population
projections produced by the California Department of Finance as well as adjustments that incorporate the region’s
existing housing need. The adjustments result from recent legislation requiring HCD to apply additional
adjustment factors to the baseline growth projection from California Department of Finance, in order for the
regions to get closer to healthy housing markets. To this end, adjustments focus on the region’s vacancy rate,
level of overcrowding and the share of cost burdened households, and seek to bring the region more in line with
comparable ones. These new laws governing the methodology for how HCD calculates the RHNA resulted in a
significantly higher number of housing units for which the Bay Area must plan compared to previous cycles.
10.3.2 Sites Summary
The vacant, partially vacant, and underutilized sites identified in this report are sufficient to accommodate
approximately 121 percent of the Los Gatos’s Regional Housing Needs Allocation for the 6th cycle planning
period. This number accommodates the recommended buffer of 15 percent above RHNA, which would equal
capacity of approximately 299 additional units. This “cushion” for capacity above the base RHNA number is
highly recommended because of the State’s no-net-loss policy, which precludes jurisdictions from approving
development that results in an overall housing site deficit. The “cushion” essentially provides a degree of
flexibility for policy makers as they make development decisions. Many of the sites identified in this report have
existing uses that would need to be demolished before new housing could be constructed.
For communities like Los Gatos that are largely built-out and surrounded on all sides by other communities,
redevelopment and densification is the only practical solution to providing a fair share of future housing for the
San Francisco Bay Area. By its nature, such redevelopment is more costly and more time consuming than
building new units on vacant land. To offset these constraints, modestly higher densities are proposed in some
areas. These higher densities act as a market incentive to offset the added cost and time required build new
housing on redeveloped sites. Property owner interest will be pivotal for facilitating single-family site opportunities
to policies to add housing through Senate Bill 9 (SB 9), which allows for up to four units on a property zoned for
single-family residential. Table 10-3 provides a summary of vacant and underutilized housing sites in Los Gatos.
Table 10-3 Summary of Vacant and Underutilized Housing Sites
Item Very Low Low Moderate Above
Moderate Total
Total 679 437 463 827 2,406
RHNA 537 310 320 826 1,993
Buffer (15 %) 81 46 48 124 299
RHNA + Buffer 618 356 368 950 2,292
Difference 61 81 95 -123 114
SOURCE: EMC Planning Group, Inc; Town of Los Gatos
14 Plan Bay Area 2050 is a long-range plan charting the course for the future of the nine-county San Francisco Bay Area. It
covers four key issues: the economy, the environment, housing and transportation
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10.4 Energy and Resource Conservation
This section summarizes background information and actions being undertaken by the Town of Los Gatos to
address energy and resource conservation. The information is excerpted from Chapter 8 (Environment and
Sustainability Element) of the 2040 General Plan. For a full discussion of energy-related issues, please see
Chapter 8, Section 8.6 (Energy) of the 2040 General Plan.
10.4.1 Opportunities for Energy Conservation
With the escalation in energy prices, consumers and builders have once again become more aware of energy
costs. The Town must balance between development and environmental stewardship to maintain a strong
economy and, at the same time, protect the environment. The following section highlights building standards
and conservation codes contributing to that success.
Title 24 of the California Administrative Code sets forth mandatory energy standards for new development and
requires adoption of an "energy budget." In turn, the home building industry must comply with these standards
while localities are responsible for enforcing the energy conservation regulations. In 2015, the Town adopted a
Solar Energy Code for the purpose of reducing energy costs for new residential developments and adopted an
energy budget. In addition, State law (both the Residential Building Code and CalGreen) have standards that
significantly reduce energy use in new residential construction.
Increasing energy costs, persistent drought and climate change have reshaped how Californians think when it
comes to buying new homes. Solar roof panels have become more commonplace over the past several decades,
with both State and federal tax credits available. Energy-efficient appliances and landscaping have become
amenities of choice for homebuyers. Developers can make the most of this paradigm shift by embracing “green”
building practices that incorporate the energy and water efficiencies that consumers desire as well as
environmentally friendly construction that minimizes waste and maximizes the use of resources.
Pacific Gas and Electric (PG&E) distributes electricity throughout Los Gatos, with supplies purchased from Silicon
Valley Clean Energy (SVCE). PG&E supplies natural gas to the community as well. The Town is committed to its
partnership with other local communities under the umbrella of SVCE. Through this partnership, Los Gatos
residents and businesses receive carbon-free electricity at lower rates than those that arise from fossil fuel
consumption. SVCE works to innovate and implement new clean energy programs and presents many of these
innovations at community meetings, Earth Day events, and presentations to businesses. SVCE’s 2020
Community Benefits Summary indicates Los Gatos achieved the following results:
$813,000 in on-bill savings for Los Gatos SVCE customers.
14,700 households and businesses served.
99 percent reduction in electric utility-related emissions (34,897,000 pounds greenhouse gas emissions
avoided by providing clean energy).
$29,900 in cash payments to customers for generating surplus solar energy.
Achieving these goals adds to the overall GHG reduction strategy, with a focus on lowering dependence on
carbon-based fuels and energy sources. Energy efficiency involves a careful balance of assessing energy
sources, educating the public on home and business renewable energy use, implementing energy efficiency
strategies, and encouraging and incentivizing widespread and ongoing implementation of those strategies.
10.4.2 Energy-Related Goals and Policies
As required by State housing law, the Housing Element must analyze energy conservation opportunities in
residential development. In the following section, Goal HE-5 and its related policies and action address energy
conservation in residential development in Los Gatos.
The relevant Environment and Sustainability Element goals and policies are:
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August 2022 Initial Draft 2023-2031 Housing Element 10-23
Carbon-Neutral Energy (ENV-11.1). Support SCVE to continue to procure carbon-neutral energy for long-
term and short-term supplies, including renewable resources.
Energy Efficiency in Municipal Facilities (ENV 11.2). Invest in cost-effective energy efficiency and energy
conservation programs in municipal facilities.
Future Demand Reduction (ENV 11.3) Explore cost-effective, reliable, and feasible energy efficiency and
demand reduction opportunities and continue to use the Sustainability Plan to include education programs
for these opportunities.
Conservation and Reduction (ENV 11.4). Maximize the conservation and efficient use of energy in existing
and new residences, businesses, and municipal buildings in Los Gatos.
Solar Systems (ENV 11.5). Support the maximum economic use of solar electric (photovoltaic) systems
on-site to augment the renewable energy portfolio available to new development, businesses, and
municipal facilities.
Organic Waste Recycling (ENV 11.6). Comply with SB 1383 regulations to maximize energy recovery
from organic materials such as yard trimmings, food waste, and other compostable resources.
10.5 Goals, Policies, and Implementation Programs
The Town does not build the housing but rather creates the policies and implementation programs to plan for
where the housing can be located and how many units could be built on potential sites. The Town is responsible
for enabling the production of housing by reducing regulatory barriers, providing incentives, and supporting
programs that create or preserve housing, especially for vulnerable populations. The goals, policies, and
implementation programs are intended to initiate the discussion of the housing needs of Los Gatos through 2031.
The Town encourages production of a diversity of new housing to ensure an adequate supply is available to meet
the needs of existing and future residents. To enable the construction of quality housing, the Town has identified
the following policies and actions.
Goal HE-1 Facilitate All Types of Housing Construction
The Town encourages the production of diverse new housing options to ensure that an adequate supply is
available to meet the existing and future needs of all residents.
Policy HE-1.1 Adequate Sites
Designate sufficient, residentially zoned land at appropriate densities to provide adequate sites to
accommodate Los Gatos’s RHNA for 2023–2031 and monitor residential development to ensure
there is an adequate level of remaining development capacity.
Policy HE-1.2 Multi-family Housing Densities
Encourage builders to develop projects on multi-family designated properties at the high end of
the applicable density range.
Policy HE-1.3 Infrastructure
All new residential development shall be sufficiently served by public services and facilities,
including pedestrian and vehicular circulation, bike lanes, water and wastewater services, police,
fire, schools, and parks.
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Policy HE-1.4 Housing Design
Ensure that all new housing is well designed and fosters a sense of community.
Policy HE-1.5 Variety of Housing Choices
Encourage the production of housing that meets the needs of all economic segments of the
Town, including lower and moderate households, to maintain a balanced community.
(New)
Policy HE-1.6 Universal Design
Address the special housing needs of persons with disabilities through reasonable
accommodation procedures, zoning provisions for supportive and group housing, homeowner
accessibility grants, and by encouraging universal design.
Policy HE-1.7 Infill Opportunities in Single-Family Neighborhoods
The Town shall increase access to opportunity for lower-income households by encouraging infill
of smaller units in single-family neighborhoods (e.g., ADUs, multi-generational housing units and
SB-9 projects).
Goal HE-2
Provide New Affordable Housing
Overall housing production has been too slow to keep pace with population growth over the past two decades.
This trend has increased demand on the supply side of housing and increased the cost of all housing. More
affordable housing is needed for extremely low, very low-, low-, and middle-income households.
Policy HE-2.1 Financial Resources
Pursue expanding financial resources to support the production of affordable housing for the
Town’s modest income residents and workforce.
Policy HE-2.2 Housing Vouchers
The Town shall support the Santa Clara County Housing Authority program for Housing Choice
Vouchers (Section 8) to assist extremely low-, very low-, and low-income residents of the Town.
Policy HE-2.3 Mixed-Use Development
Encourage mixed–use developments that provide affordable housing close to employment
centers and/or transportation facilities, particularly along arterials and in designated Community
Growth Districts.
Policy HE-2.4 Rental Housing
Strive to ensure that at least 30 percent of the housing stock is rental units and continue to
support the development of Accessory Dwelling Units as a means of affordable rental housing.
Policy HE-2.5 Pre-Approved Accessory Dwelling Units
Collaborate with countywide efforts to develop pre-approved Accessory Dwelling Unit plans
suitable for Los Gatos, including designs that are Americans with Disabilities Act (ADA)
accessible.
Policy HE-2.6 Promote Accessory Dwelling Unit Construction
Encourage homeowners to construct detached rental ADUs in order to increase the housing
stock of smaller rental units.
AFFH
AFFH
AFFH
AFFH
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August 2022 Initial Draft 2023-2031 Housing Element 10-25
Policy HE-2.7 Senior Housing
Support development and maintenance of affordable senior rental and ownership housing and
continue to work with existing senior lifestyle living and assisted living facilities in Los Gatos.
Encourage a variety of senior living options including downsizing and step-down independent
ownership housing.
Policy HE-2.8 Equal Housing and Special Needs
Support the provision of permanent, affordable, and accessible housing that allows persons with
special needs to live independent lives. For the purposes of this Housing Element “persons with
special needs” include extremely low-income households, seniors, overcrowded and large-family
households, the homeless population, those in need of emergency shelter, youth aging out of
foster care, female-headed or single-parent households, and persons with disabilities, including
developmental challenges.
Policy HE-2.9 Public/Private Partnerships
Work with and support collaborative partnerships with nonprofit agencies and housing developers
to plan and develop a mix of affordable housing opportunities in Los Gatos using available
funding.
Policy HE-2.10 Repurposing Obsolete Commercial Buildings
Encourage property owners to pursue opportunities to integrate housing in underutilized
commercial centers, and to reuse excess or obsolete commercial buildings for affordable
housing.
Policy HE-2.11 Smart Growth
Encourage “smart growth” that accommodates higher density residential uses near transit,
bicycle-, and pedestrian-friendly areas of the Town that encourage and facilitate the conservation
of resources by reducing the need for automobile use.
Policy HE-2.12 Housing on Land Owned by Religious Institutions
Support the provision of affordable housing on congregational land through flexible development
standards, including opportunities for reduced and shared parking arrangements.
Goal HE-3 Remove Barriers to the Production of Housing
Governmental constraints on the development of housing for households of all income levels needs to be
minimized. The success of development in some opportunity areas will be dependent upon consolidation of
individual parcels into larger development sites. While some of the individual parcels within these areas are
already under common ownership, many are individually owned.
Policy HE-3.1 Regulatory Incentives for Affordable Housing
Facilitate the development of affordable housing through regulatory incentives and concessions,
and/or financial assistance. Continue expediting the permit processing system for affordable
residential development applications and proactively seek out new models and approaches in the
provision of affordable housing.
AFFH
AFFH
AFFH
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Policy HE-3.2 Flexible Development Standards
Provide flexibility in development standards to accommodate new models and approaches to
providing housing, such as live/work housing (permitted with a CUP), and micro units (in existing
housing units), to allow housing to adapt to the needs of the occupants.
Policy HE-3.3 Efficient Development Processing
Explore continued improvements to the entitlement process to streamline and coordinate the
processing of permits, design review, and environmental clearance.
Policy HE-3.4 Lot Consolidation
Educate and encourage lot consolidation and lot assemblage in mixed use and commercial
areas.
Policy HE-3.5 Development Impact and Permit Fees
Consider reduced fees and alternative funding to facilitate affordable housing development.
Goal HE-4 Improve the Existing Housing Stock
Providing more housing is a priority but maintaining and preserving existing housing also plays a critical role.
Much of the older housing in the Town can be naturally affordable, as priced by the housing market, but must be
well-maintained to provide quality housing across income levels.
Policy HE-4.1 Property and Housing Conditions
Support long-term maintenance and improvement of existing housing units through Code
Enforcement and housing rehabilitation programs.
Policy HE-4.2 Multi-Family Housing Acquisition and Improvement
Improve the quality of rental housing by acquisition and/or rehabilitation using Affordable Housing
Fund and support nonprofit housing providers in the acquisition and rehabilitation of older housing
stock, and maintenance as long-term affordable housing.
Policy HE-4.3 Home Affordability Preservation
Preserve the affordability of units affordable to very low-, low-, and moderate-income households
in the Town and Bonnie View Park, and enforce zoning regulations regarding conversion of
mobile home parks in Los Gatos.
Policy HE-4.4 Naturally Occurring Affordable Units
Encourage maintaining naturally affordable housing types such as duplexes, townhomes, and
mobile homes.
Policy HE-4.5 Preserve Residences of Historic or Architectural Value
The Town shall encourage the preservation of residential buildings with historic or architectural
value.
AFFH
AFFH
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August 2022 Initial Draft 2023-2031 Housing Element 10-27
Goal HE-5
Encourage Green Building and Energy Conservation
The Town is dedicated to addressing and mitigating climate change impacts and strives to be a leader in
sustainable development. The General Plan promotes environmentally sound and socially equitable development
by encouraging residential construction that promotes sustainable building and energy conservation practices.
Policy HE-5.1 Green Building
Encourage sustainable housing development throughout the Town by fostering awareness and
encouraging the adoption of green building practices.
Policy HE-5.2 Solar Energy
Promote more efficient energy use and renewable energy reduces the strain on the existing
energy grid and reduces greenhouse gas emissions.
Goal HE-6
Publicize Fair Housing Resources Including those for Special Needs Populations
Many programs that address housing access and affordability for lower income households are supported by the
Town and its partners; however, many people who need these resources have trouble finding them. It is also
important for the Town to proactively inform residents about housing needs and resources, particularly related to
Fair Housing issues.
Policy HE-6.1 Fair Housing
Support and publicize housing programs that protect individuals’ rights and enforce fair housing
laws prohibiting arbitrary discrimination in the building, financing, selling or renting of housing on
the basis of race, color, ancestry, religion, national origin, sex, sexual orientation, age,
disability/medical condition, familial status, marital status, source of income or other such factors.
Policy HE-6.2 Financial Assistance
Continue to encourage Los Gatos households to participate in financial assistance programs
provided in the County of Santa Clara.
Policy HE-6.3 Housing for Persons with Special Needs
Continue to provide assistance to service providers who support special needs households and
the homeless such as Project Sentinel, Santa Clara County Housing Authority, and Santa Clara
County Office of Supportive Housing. Support and publicize efforts and resources to provide
coordinated services for persons with special needs in the Town.
Policy HE-6.4 Affordable Housing Awareness
Raise community awareness on the needs for and benefits of affordable housing through Town
outreach. Foster Town wide discussion on housing needs, resources and ideas and improve
communication channels and methods for meaningful dialogue.
AFFH
AFFH
AFFH
AFFH
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Policy HE-6.5 Infill Opportunities in Single-Family Neighborhoods
The Town shall provide educational materials for the public, to promote ADU’s, multi-generational
housing units and SB-9 projects that create housing opportunities in single-family neighborhoods
through the infill of smaller units.
Policy HE-6.6 Rental Dispute Mediation and Arbitration Ordinance
The Town will work to prevent evictions of long term, low-income residents living in naturally
affordable housing who can quickly lose their residence due to sudden rent increases or changes
in property owners.
10.6 Implementation Programs
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
A Developer Forum
Establish annual meeting
between staff and housing
developers to discuss constraints
and opportunities to affordable
and market rate housing projects.
HE-1.1 Adequate
Sites
HE-1.2 Multi-family
Housing Densities
HE-1.3 Infrastructure
HE-1.4 Housing
Design
HE-1.5 Variety of
Housing Choices
Community
Development
Department
Annually provide
focus group or
Town Hall
meeting
opportunities
None
required
B Large Site Program
Encourage property owners and
affordable housing developers to
target and market the availability
of sites with the best potential for
development by facilitating
meetings between willing
property owners of large sites.
To assist the development of
housing, especially for lower
income households, on sites
larger than 10 acres, the Town
will facilitate land divisions and lot
line adjustments to result in
parcels sizes between one half
to10 acres that can
accommodate multiple-family
developments affordable to lower
income households in light of
State, Federal and local financing
programs.
HE-1.1 Adequate
Sites
HE-1.2 Multi-family
Housing Densities
HE-1.3 Infrastructure
HE-1.4 Housing
Design
HE-1.5 Variety of
Housing Choices
Community
Development
Department
Annually provide
focus group or
Town Hall
meeting
opportunities
None
required
C No Net Loss
Develop and implement an
ongoing formal evaluation
procedure (project-by-project) of
sites identified in the Sites
Inventory to maintain sufficient
HE-1.1 Adequate
Sites
HE-1.3 Infrastructure
HE-1.5 Town
Resources
HE-1.5 Variety of
Housing Choice
Community
Development
Department
Ongoing
tracking as
developments
are approved
None
required
AFFH
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August 2022 Initial Draft 2023-2031 Housing Element 10-29
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
sites at appropriate densities to
accommodate its RHNA for lower
income households. If an
approval of a development
results in a reduction of site
capacity below the residential
capacity needed to
accommodate the remaining
RHNA, including for lower
income households, the Town
will identify and zone sufficient
adequate sites at appropriate
densities to accommodate the
remaining RHNA.
D Additional Housing Capacity
Amend the North Forty Specific
Plan to increase the maximum
allowable density from 20
dwelling units per acre to more
than 30 dwelling units per acre
and increase the total number of
dwelling units allowed in the
Specific Plan.
HE-1.1 Adequate
Sites
HE-3.3 Efficient
Development
Processing
Community
Development
Department
December 2023 None
required
E Affordable Development on
Town Owned Property
Pursue opportunities to work with
an affordable housing developer
to construct affordable housing
on Town owned property.
HE-1.1 Adequate
Sites
Community
Development
Department
Ongoing None
required
F Update Permit Software
System
Update the existing permit
software system to better monitor
average processing times for
ministerial and discretionary
development permits. Use data
to set baselines timelines to drive
improvements. Update the Town
planning and zoning regulations
and remove permit processing
constraints as appropriate.
HE-1.5 Town
Resources
HE-3.3 Efficient
Development
Processing
Community
Development
Department
Review and
update
regulations as
appropriate at
biannual years
None
required
G Report Annually on Housing
Availability
Prepare an annual housing report
for the review of the Town
Council including information on
progress made towards
HE-1.1 Adequate
Sites
HE-1.5 Town
Resources
HE-3.3 Efficient
Development
Processing
Community
Development
Department
Annual None
required
Intial Draft 2023-2031 Housing Element
10-30 Initial Draft 2023-2031 Housing Element August 2022
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
achieving new construction need,
affordable housing
conserved/developed,
effectiveness of existing
programs and recommendations
for improvement. Consult and
collaborate with non-profit
providers, special need
providers, and other community
resources in preparation and
evaluation of the report.
HE-1.5 Variety of
Housing Choices
H Study detached single-family
condominium option.
Study the development of a new
floor area ratio standard for multi-
family development when
developed as detached single-
family condominium units.
HE-1.5 Variety of
Housing Choices
HE-2.7 Senior
Housing
Community
Development
Department
Upon adoption
of this Housing
Element
None
required
I Coordination with Water and
Sewers Providers
Deliver the adopted Housing
Element to the San Jose Water
Company and the West Valley
Sanitation District so that they
can prioritize current and future
resources or services for housing
development that helps meet Los
Gatos’s RHNA for lower income
households.
HE-1.3 Infrastructure
Community
Development
Department
Upon adoption
of this Housing
Element
None
required
J Helping Seniors Program
Provide financial assistance for
health, safety, emergency and
accessibility home repairs to low-
income seniors and low-income
mobile homeowners through the
Below Market Price Program
funds, subject to availability of
Program funds.
HE-1.7 Universal
Design
HE-2.7 Senior
Housing
HE-2.8 Equal
Housing and Special
Needs
Community
Development
Department,
Town Council
Ongoing Town
Affordable
Housing
Funds
K Small Multi-Unit Housing
Implement the Small Multi-Unit
Housing Policy LU-1.2 in the
2040 General Plan, which
supports housing types and
designs that increase density
while remaining consistent with
the building scale. This includes
multi-family units or clustered
HE-1.5 Variety of
Housing Choices
HE-3.3 Efficient
Development
Processing
Community
Development
Department
Ongoing None
required
10. Housing Element
August 2022 Initial Draft 2023-2031 Housing Element 10-31
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
residential buildings that provide
relatively smaller, less expensive
units within the existing
neighborhoods.
Update the Zoning Code to
facilitate low rise multi-family
structures in the High Residential
Density designation per
Implementation Program(s) in the
2040 General Plan.
Promote this program through
publication, to include the
following information: Low rise
multi-family dwelling units
ranging from two to 10 units can
help meet the needs of families,
seniors and students. Permit
processing times tend to be
shorter than larger multi-family
buildings due to the low-rise
nature of the structures.
L Rental Housing for Large
Families
Encourage development of multi-
family rental housing that is
greater than two bedrooms to
encourage the provision of
adequate rental housing for
families.
HE-1.5 Variety of
Housing Choices
Community
Development
Department
Ongoing None
required
M Lot Consolidation
The Town will conduct outreach
to property owners in these areas
to identify meaningful incentives
to facilitate lot consolidation, lot
assemblage and redevelopment
in mixed use and commercial
areas. Based on this feedback,
within two years of Housing
Element adoption, the Town will
consider the development of a
Lot Consolidation Ordinance to
include specific incentives such
as: flexible development
standards such as reduced
setbacks, increased lot coverage,
increased heights, reduced
parking, and reduced fees.
HE-3.4 Lot
Consolidation
Community
Development
Department
Within two years
of Housing
Element
adoption
None
required
Intial Draft 2023-2031 Housing Element
10-32 Initial Draft 2023-2031 Housing Element August 2022
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
Streamlined permit processing
through administrative staff
review. Upon adoption of the
Ordinance, the Town will work
with property owners that are
receptive to lot consolidation/lot
assemblage to assist them in
facilitating the parcel merge
process in a streamlined and
timely manner.
N Below Market Price (BMP)
Program
Conduct a study to evaluate the
existing BMP Program and
recommend changes to the
program to increase the number
of units constructed. The study
will include evaluation of the
implementation of the BMP
Program to date, including
impacts to market rate housing
related to current market
conditions, project applications,
estimated affordable housing
requirements, fee collection, and
actual construction of affordable
housing units to address
constraints based on the
outcome of the evaluation. The
study will evaluate the feasibility
of requiring BMP’s for senior
assisted living, senior
independent living, and senior
communities.
HE-2.7 Senior
Housing
HE-3.1 Regulatory
Incentives for
Affordable Housing
HE-4.1 Property and
Housing Conditions
HE-4.2 Multi-family
Housing Acquisition
Improvement
Community
Development
Department,
Housing
Authority of the
County of
Santa Clara
Complete study
by June 2025
and implement
recommended
policy actions by
December 2028.
Town
Affordable
Housing
Fund
O Establish a Commercial
Linkage Fee
Conduct a nexus study and
amend the Municipal Code to
include a linkage fee if
appropriate. A commercial
linkage fee is an impact fee
levied on commercial
development for the provision of
affordable housing. Before
levying an impact fee, the Town
is required to complete a nexus
study that shows the linkage
between new development and
HE-3.5 Development
Impact and Permit
Fees
Community
Development
Department
Complete study
by June 2024
and implement
recommended
actions by
December 2024.
None
required
10. Housing Element
August 2022 Initial Draft 2023-2031 Housing Element 10-33
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
the increased demand for
housing.
P Funds for Development for
Extremely Low Income (ELI)
Households
Continue to encourage the
creation of housing that is
affordable to extremely low-
income households by allocating
a percentage of the Town
Affordable Housing (Below
Market Price) Fund to subsidize
housing for extremely low-income
households and as part of the
Town’s annual budget process
provide a priority for funding ELI
developments that may be
submitted to the Town with the
Town’s Below Market Price
(BMP) monies. Update the
allocation as recommended by
the BMP study. Additionally,
provide staff technical assistance
with the preparation of Tax Credit
or grant funding applications or
conducting local Tax Equity and
Fiscal Responsibility Act
(TEFRA) hearings to facilitate the
financing of proposed housing
projects in Los Gatos.
HE-3.1 Regulatory
Incentives for
Affordable Housing
HE-4.1 Property and
Housing Conditions
HE-4.2 Multi-family
Housing Acquisition
Improvement
Community
Development
Department
Ongoing Town
Affordable
Housing
Fund
Q Habitat for Humanity Home
Repair Program
Work with Habitat for Humanity to
promote the Home Repair
Program offered by Habitat,
which responds to health,
accessibility, and safety concerns
in homes owned by low-income
families, veterans, and senior
residents on limited incomes. By
fixing the long-deferred
maintenance projects, critical
repairs and code violations, this
program helps families stay in
their already affordable homes
and avoid displacement.
HE-4.1 Property and
Housing Conditions
Community
Development
Department
Annually meet
with Habitat for
Humanity
None
required
R Development Impact and
Permit Fees
HE-3.5 Development
Impact and Permit
Fees
Community
Development
Department,
January 2023 to
January 2031
Staff Time
Intial Draft 2023-2031 Housing Element
10-34 Initial Draft 2023-2031 Housing Element August 2022
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
Review the financial needs of
affordable housing projects,
determine whether or not Town
fees can be reduced to facilitate
affordable housing development,
and identify options for the Town
to offset the foregone revenues
from other sources.
Parks and
Public Works,
Town Council
S Affordable Housing
Development
Provide incentives for affordable
housing development, including
density bonus, fee deferrals or
reductions, and reduced fees for
studio units. The Town shall also
provide annual outreach to attract
and support affordable housing
developers in the Town, including
developers of senior housing,
extremely low-income units, and
permanent supportive housing for
persons with disabilities and
developmental disabilities.
HE-1.2 Multi-family
Housing Densities
HE-3.5 Development
Impact and Permit
Fees
HE-2.7 Equal
Housing and Special
Needs
Community
Development
Department,
Town Council
January 2023 to
January 2031
Staff Time
and the
Town
Affordable
Housing
Fund
T Purchase Affordability
Covenants in Existing
Apartments
Create a program for the Town to
purchase affordability covenants
with BMP funding to increase the
supply of affordable housing or
“buy-down” existing affordability
covenants to have deeper
affordable units in existing rental
properties. This program is
analogous to purchasing
covenants in new developments
in conjunction with the BMP
program, but for existing
apartments.
In existing and new rental
developments, the Town could
provide a rehabilitation loan or
another form of subsidy to a
rental property owner in
exchange for securing
affordability covenants on a
percentage of units and the
owner’s agreement to restrict
HE-2.1 Financial
Resources
Community
Development
Department,
Town Council
January 2023 to
January 2031
Town
Affordable
Housing
Fund
10. Housing Element
August 2022 Initial Draft 2023-2031 Housing Element 10-35
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
rents on these units to levels that
would be affordable to very low-
and low-income households.
The Town will investigate the
potential of purchasing and
buying-down affordability
covenants for new rental
developments coming on-line
and existing apartments. The
program shall identify a
preliminary list of sites for
acquiring covenants.
U Accessory Dwelling Units
Waive building fees when an
ADU is deed restricted for very
low- and low-income households.
HE-2.4 Rental
Housing
Community
Development
Department
Amend the Fee
Schedule within
one year of
Housing
Element
adoption
Below
Market
Price
Housing In-
lieu Fees
V Density Bonus
Conduct a study to evaluate the
existing Density Bonus
Ordinance and recommend
changes to increase the number
of units constructed. The study
will include an evaluation of the
implementation of the ordinance
to date and actual construction of
affordable housing units that
utilized the Density Bonus.
Additional density and height
incentives beyond what the state
requires will be considered (i.e.,
fee reductions, add free density
of BMP units). The study shall
recommend improvements to the
Ordinance based on the outcome
of the evaluation.
HE-3.1 Regulatory
Incentives for
Affordable Housing
HE-2.3 Mixed-Use
Development
HE-2.7 Equal
Housing and Special
Needs
HE-2.8 Public/Private
Partnerships
Community
Development
Department
Complete study
by June 2026
and implement
recommended
actions by
December 2029
None
required
W Affordable Housing Overlay
Zone (AHOZ)
Continue to encourage
development of housing
affordable to all income levels on
property within this Town Overlay
Zone. The Overlay property on
Knowles Avenue is a key site for
a mixed income affordable
housing project.
HE-3.1 Regulatory
Incentives for
Affordable Housing
HE-2.7 Senior
Housing
HE-2.8 Equal
Housing and Special
Needs
HE-2.9 Public/Private
Partnerships
HE-2.11 Policy Smart
Growth
Community
Development
Department
Complete by
2025
None
required
Intial Draft 2023-2031 Housing Element
10-36 Initial Draft 2023-2031 Housing Element August 2022
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
X Congregational Land Overlay
Zone
Expand site opportunities by
allowing affordable housing on
religious sites. Study new
Congregational Land Overlay to
build upon what is available
through AB 1851 and help
congregations with affordable
housing development partners.
HE-3.1 Regulatory
Incentives for
Affordable Housing
HE-2.7 Senior
Housing
HE-2.8 Equal
Housing and Special
Needs
HE-2.9 Public/Private
Partnerships
HE-2.11 Policy Smart
Growth
Community
Development
Department
Complete by
2025
None
required
Y Nonprofit Affordable Housing
Providers
Support the efforts of nonprofit
affordable housing organizations
that provide housing services in
Los Gatos. Encourage the
participation of these providers in
developing housing and meeting
the affordable housing needs of
Los Gatos households
particularly extremely low-income
households. The Community
Development Department staff
will meet with nonprofit groups on
at least on an annual basis to
discuss constraints to
development and develop
strategies and actions for
affordable housing development
including incentives for the
development of affordable
housing as provided under the
Affordable Housing Overlay
Zone.)
HE-2.3 Mixed-Use
Development
HE-2.7 Senior
Housing
HE-2.8 Equal
Housing and Special
Needs
HE-2.9 Public/Private
Partnerships
Community
Development
Department
Annually None
required
Z Increased Range of Housing
Opportunities of the Homeless
Continue to support the County
of Santa Clara’s Continuum of
Care plan, as well as the
“Housing 1000” campaign by
“Destination: Home” to provide
housing opportunities for
homeless households including
emergency shelter, transitional
housing, and permanent
affordable housing opportunities.
HE-2.7 Equal
Housing and Special
Needs
Community
Development
Department
January 2023 to
January 2031
County
CDBG
10. Housing Element
August 2022 Initial Draft 2023-2031 Housing Element 10-37
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
AA Reasonable Accommodation
Ordinance
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. Review
annually for trends and develop
new procedures and/or materials
in response to annual review.
HE-2.7 Equal
Housing and Special
Needs
Community
Development
Department
Annually None
required
AB Accessibility Design Features
Encourage residential
development that incorporates
accessible design features to
meet the needs of as many users
as possible. The intent is to
reduce the potential for
occupants to be displaced from
their homes due to disability, to
allow those persons to visit
neighboring dwelling units, and to
increase to number of accessible
dwelling units in the local housing
supply that meet long term
housing needs. Remove
identified regulatory constraints
to housing for persons with
disabilities.
Policy HE-1.6
Universal Design HE-
2.7 Equal Housing
and Special Needs
HE-2.8 Public/Private
Partnerships
Community
Development
Department
Review and
update
regulations as
necessary; at
least every three
years
None
required
AC Housing Opportunities for
Persons Living with
Disabilities
The Town supports the provision
of housing for its disabled
population, including persons
with developmental disabilities,
through several means,
including:
By-right zoning for
licensed residential care
facilities (six or fewer
residents) in all residential
zones, and provisions for
HE-1.6 Universal
Design
HE-2.7 Equal
Housing and Special
Needs
HE-6.1 Fair Housing
HE-6.3 Housing for
Persons with Special
Needs
Intial Draft 2023-2031 Housing Element
10-38 Initial Draft 2023-2031 Housing Element August 2022
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
larger care facilities
(seven or more residents)
in multifamily residential
zones subject to a
conditional use permit.
Treatment of supportive
and transitional housing
as a residential use of
property, and subject only
to those restrictions and
processing requirements
that apply to other
residential dwellings of the
same type in the same
zone.
Programs to facilitate
affordable housing,
including Density Bonus
and Affordable Housing
Overlay.
Encouraging affordable
housing developers to
integrate supportive
housing units, increasing
project competitiveness
for Tax Credits and other
funding sources.
Supporting the creation of
accessory dwelling units
in all residential districts.
AD Special Needs Housing
Prioritize special needs housing
by allowing for reduced
processing time and streamlined
procedures for such appropriate
zoning/land use applications.
Include preferential handling of
special needs populations in
management plans and
regulatory agreements of funded
projects.
HE-2.7 Senior
Housing
HE-2.8 Equal
Housing and Special
Needs
HE-2.9 Public/Private
Partnerships
Community
Development
Department
January 2023 to
January 2031
None
required
AE Rental Dispute Resolution
Program
Continue the administration of
the Rental Dispute Resolution
HE-6.6 Rental
Dispute Mediation
and Arbitration
Ordinance
Community
Services
Department
January 2023 to
January 2031
Program
fees
10. Housing Element
August 2022 Initial Draft 2023-2031 Housing Element 10-39
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
Program and consider revisions
as necessary to make the
program as effective as possible
in protecting both tenants’ and
landlords’ rights.
AF Rental Assistance for Persons
with Developmental
Challenges
Work with local and/or regional
partners to provide rental
assistance for persons with
developmental challenges.
Efforts will include the following:
Work with the California
Department of
Developmental Services
local Regional Center to
identify the housing needs
specific to
developmentally
challenged persons
residing in Los Gatos and
assist in identifying
available housing that
meets those needs.
Encourage qualifying
Regional Center clients
residing in Los Gatos to
apply for appropriate
rental assistance
programs.
Identify outside funding
sources, such as regional
or state programs, that
could provide rental
assistance for
developmentally
challenged persons living
in Los Gatos.
Make referrals to non-
profit service providers
with rental assistance or
rental voucher programs
such as West Valley
Community Services and
the Housing Authority of
Santa Clara County.
HE-2.7 Senior
Housing
HE-2.8 Equal
Housing and Special
Needs
HE-2.9 Public/Private
Partnerships
Community
Development
Department,
California
Department of
Developmental
Services
Annually follow
up on a periodic
basis with
service
providers to
determine
outcomes for
referrals and
update referral
process and
timelines
accordingly
2023-2031
period
None
required
Intial Draft 2023-2031 Housing Element
10-40 Initial Draft 2023-2031 Housing Element August 2022
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
AG Supportive Services for the
Homeless
Continue to provide support for
community and nonprofit
organizations providing
supportive services for homeless
persons in Los Gatos. The Town
of Los Gatos currently funds an
annual grant and disseminates
opportunities for other agency
funding to West Valley
Community Services (WVCS),
which provides a Comprehensive
Emergency Assistance Program
(CEAP). The CEAP includes the
following services:
Rental assistance to
prevent homelessness.
Assistance to prevent
eviction.
Deposit assistance to
house un-housed
persons.
Utility assistance to
prevent utility shut off.
HE-2.3 Mixed-Use
Development
HE-2.7 Equal
Housing and Special
Needs
Community
Development
Department
January 2023 to
January 2031
Town of
Los Gatos
AH Stabilize Rents
Study and implement
recommendations to the Town’s
Rental Dispute Mediation and
Arbitration Ordinance 2128 to
help further stabilize rents for
long-term residents. Long term,
low-income residents living in
naturally affordable housing can
quickly lose their residence due
to sudden rent increases or
changes in property owners. To
prevent evictions and
displacement, the Town shall
HE-2.3 Mixed-Use
Development
HE-2.4 Rental
Housing
HE-6.6 Rental
Dispute Mediation
and Arbitration
Ordinance
Community
Development
Department
Complete study
by January 2024
and implement
Municipal Code
changes by
June 2024
AI Reduce Parking Standards
Initiate a study to determine
specific updates for the Municipal
Code to address the following:
Align parking
requirements with the
3.1 Regulatory
Incentives for
Affordable Housing
2.7 Senior Housing
2.8 Equal Housing
and Special Needs
Community
Development
Department
Complete study
by January 2024
and implement
Municipal Code
changes by
June 2024
None
required
10. Housing Element
August 2022 Initial Draft 2023-2031 Housing Element 10-41
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
preparation of Objective
Design Standards.
Reduce parking
requirements near transit.
Remove guest parking
requirements.
Allow parking to be
unbundled from
residential units.
The provision of parking with
housing units can greatly
increase the cost of
development. Reducing the
required number of parking
spaces per unit lowers the overall
cost of development and affords
more developable area to
housing units instead of parking
spaces.
AJ Rezoning Program
Update the zoning
districts in accordance
with the 2040 General
Plan designations within
three to six months of
adoption. In tandem, the
Town will initiate a
program to revise the
zoning code to ensure
adequate sites are
available to accommodate
the identified sites in the
Sites Inventory: Allow 30
to 40 du/ac in the RM
zone in alignment with the
VHDR Very High Density
Residential designation.
Clarify the text of the non-
residential zones that the
housing sites contained in
the inventory sites table
that are in these zones
must include housing as
specified in the sites table.
HE-1.6 Universal
Design
Community
Development
Department
Implement
General Plan
and Municipal
Code changes
by June 2024
None
required
Intial Draft 2023-2031 Housing Element
10-42 Initial Draft 2023-2031 Housing Element August 2022
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
Rezone the Caltrans
ROW – Site F3 to allow
for residential
development.
AK
Allow for 100 Percent
Affordable Residential
Development in Mixed-Use
General Plan Designations
Amend the General Plan and the
Municipal Code to allow for 100
percent affordable residential
development without the
requirement of commercial uses.
The 2040 General Plan requires
both residential and commercial
development and does not allow
for 100 percent residential uses
in Commercial or Mixed-Use
General Plan designations, which
can be a deterrent to affordable
housing developers.
HE-3.1 Regulatory
Incentives for
Affordable Housing
Community
Development
Department
Implement
General Plan
and Municipal
Code changes
by June 2024
None
required
AL Housing Conditions Survey
Seek funding through the Below
Market Price Program funds, or
other funding sources, to conduct
a survey of housing conditions in
the Town. The survey shall
identify housing units in need of
rehabilitation or replacement and
be used to seek funding to
support housing rehabilitation
programs.
HE-4.1 Property and
Housing Conditions
Community
Development
Department
January 2023 to
January 2031
Town
Affordable
Housing
Fund
AM SB 35 Process Improvements
Develop an SB35 checklist and
written procedures for processing
SB35 applications to ensure
efficient and complete application
processing. (Government Code
section 65913.4) allows
qualifying development projects
with a specified proportion of
affordable housing units to move
more quickly through the local
government review process and
restricts the ability of local
governments to reject these
proposals.
HE-3.3 Efficient
Development
Processing
HE-3.1 Regulatory
Incentives for
Affordable Housing
Community
Development
Department
Implement by
December 2023
Staff Time
10. Housing Element
August 2022 Initial Draft 2023-2031 Housing Element 10-43
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
AN Low Barrier Navigation
Centers
Amend the Zoning Code
Definitions to include the
definition for “Low Barrier
Navigation Center” consistent
with State law. Allow at least two
mixed-use zoning districts to
permit low barrier navigation
centers as a by-right use.
AB101 (2019) provides a
pathway to permanent housing
for people experiencing
homelessness.
HE-2.7 Equal
Housing and Special
Needs
Community
Development
Department
Implement by
December 2023
Staff Time
AO Fair Housing Law Education
Educate the community about
landlords and renters rights and
responsibilities under Fair
Housing law, needs and benefits
of affordable housing, and
available resources in the Town
by posting information on the
Town’s website, social media
posts and/or brochures,
distributing information through
business licensing recertification
process for landlords, posting fair
housing posters in Town Hall, the
community center and the library.
The Town will continue to work
with and fund local nonprofits,
and to collaborate with local
homeless service providers to
provide information on homeless
needs in the town. Lack of
understanding of Fair Housing
laws by landlords and property
owners, including a lack of
willingness to rent to low-income
households remains, and lack of
community understanding of
needs, benefits and availability of
affordable housing remains a
significant barrier to low-income
households.
HE-6.4 Affordable
Housing Awareness
Community
Development
Department,
Finance
Department,
California
Department of
Developmental
Services
Resources
posted by end of
January 2023
Staff Time
AP Transit Oriented Development
Establish development standards
for transit-oriented development
HE-2.10 Policy Smart
Growth
Community
Development
Department
January 2023 to
January 2031
Staff Time
Intial Draft 2023-2031 Housing Element
10-44 Initial Draft 2023-2031 Housing Element August 2022
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
located within existing transit
areas as part of the
comprehensive Zoning Code
update. Development standards
should promote sustainable land
use practices that reduce vehicle
trips and should allow for mixed-
use developments as well as
stand-alone residential. In
addition, the Town shall provide
for CEQA streamlining consistent
with the provisions of SB 375.
AQ Preserve “At-Risk” Affordable
Housing Units
Continue to monitor affordable,
multi-family housing units in the
Town to ensure that they retain
their affordability status.
HE-4.3 Home
Affordability
Preservation
Community
Development
Department
January 2023 to
January 2031
None
required
AR Rental Housing Conservation
Program
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
goals and policies as set forth in
the 2040 General Plan.
HE-2.4 Rental
Housing
HE-4.1 Property and
Housing Conditions
Community
Development
Department
January 2023 to
January 2031
None
required
AS CDBG and other Housing
Rehabilitation Programs
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.
HE-4.1 Property and
Housing Conditions
HE-4.3 Home
Affordability
Preservation
Community
Development
Department
January 2023 to
January 2031
General
Fund
AT Countywide Home Repair
Programs
Continue to support countywide
programs (Habitat for Humanity
East Bay/Silicon Valley,
Rebuilding Together, Housing
Trust of Santa Clara County, etc.)
that provide assistance with
minor home repairs and
HE-4.1 Property and
Housing Conditions
HE-6.3 Housing for
Persons with Special
Needs
Community
Development
Department;
County of
Santa Clara
January 2023 to
January 2031
None
required
10. Housing Element
August 2022 Initial Draft 2023-2031 Housing Element 10-45
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
accessibility improvements for
lower income households,
including special needs
households.
Support annual funding requests
submitted by rehabilitation
agencies to the County of Santa
Clara and as needed provide
local technical assistance to
nonprofits submitting funding
applications to the County and/or
eventually applying for building
permits through the Town’s
building permit process.
The Town can contribute funding
from its Below Market Price
monies support these programs.
The Town of Los Gatos as a
participating member of the
County of Santa Clara JPA, and
provides staffing to the County
Technical Advisory Committee
(TAC), which reviews annual
applications for funding and helps
formulate funding
recommendation to the Board of
Supervisors. Funding is provided
directly by the County of Santa
Clara as authorized by the Board
of Supervisors to the individual
non-profit service providers.
AU Energy Conservation
Opportunities
Continue to enforce State of
California Title 24 requirements
for energy conservation.
HE-5.1 Green
Building
Community
Development
Department
Ongoing None
required
AV Residential Rehabilitation
Program
Create a new program to assist
lower income homeowners,
including senior and disabled
households, with funding for
necessary materials and supplies
for home repairs and
improvements. The program
could incentivize providing grants
for the following activities:
HE-4.1 Property and
Housing Conditions
HE-5.1 Green
Building
Community
Development
Department
January 2023 to
January 2031
Town
Affordable
Housing
Fund
Intial Draft 2023-2031 Housing Element
10-46 Initial Draft 2023-2031 Housing Element August 2022
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
accessibility improvements;
exterior or interior home repair;
repair of fencing and/or
landscaping; plumbing; exterior
painting; roof repair; and similar
activities.
AW Solar Energy
Continue to expedite solar panel
installation by requiring only
ministerial building permits.
Simplifying the process to install
solar panels by eliminating
discretionary permits provides
certainty and reduces fees and
timelines.
HE-5.1 Green
Building
HE-5.2 Solar Energy
Community
Development
Department
Ongoing
None
required
AX Town Housing Resources
Guide
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,
and available at Town Hall,
Library, and other Town facilities.
Publicize available
warming/cooling centers as
provided by the Santa Clara
County of Office of Supportive
Housing during inclement
weather episodes.
HE-5.1 Green
Building
HE-6.4 Affordable
Housing Awareness
Community
Development
Department
Update list
annually
None
required
AY Santa Clara County Fair
Housing Consortium
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, Library,
Farmers Market and public
kiosks. These organizations
provide resources for Los Gatos
residents with tenant/landlord,
housing discrimination, and fair
housing concerns. Each
organization conducts outreach
HE-5.2 Solar Energy
HE-6.3 Housing for
Persons with Special
Needs
Community
Development
Department
January 2023 to
January 2031
None
required
10. Housing Element
August 2022 Initial Draft 2023-2031 Housing Element 10-47
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
including community education
presentations, distributed flyers,
and referral calls. Project
Sentinel is a member of the
Consortium and is the Town’s
contract service administrator for
the Town’s Rental Dispute
Resolution Program. Through
its on-going partnership with
Project Sentinel Town staff is
able to attend the Consortiums
annual Fair Housing Symposium,
receive training, and
disseminates fair housing
information (including how to
contact Consortium agencies for
assistance) to members of the
public who contact the Town
about a potential fair housing
related matter.
AZ Senior Housing Resources
Provide regularly updated senior
housing resource materials at the
Adult Recreation Center, Library,
and Farmers Market.
HE-6.1 Fair Housing
HE-6.2 Financial
Assistance
HE-6.3 Housing for
Persons with Special
Needs
HE-6.4 Affordable
Housing Awareness
Community
Development
Department
Update
materials
annually
None
required
BA Developmental Challenges
Continue to work with the local
California Department of
Developmental Services
Regional Center to proactively
inform families within Los Gatos
on housing and services
available for persons with
developmental challenges. This
outreach program will include an
informational brochure,
information on the Town’s
website, and housing-related
training workshops for individuals
and families.
HE-6.1 Fair Housing
HE-6.3 Housing for
Persons with Special
Needs
HE-6.4 Affordable
Housing Awareness
Community
Development
Department,
California
Department of
Developmental
Services
Update
materials
annually
None
required
BB Use a Variety of
Communication Methods
Broadcast information about
available housing resources
through a variety of
communication methods across
6.1 Fair Housing
6.4 Affordable
Housing Awareness
Community
Development
Department,
California
Department of
Developmental
Services
Quarterly
January 2023 to
January 2031
None
required
Intial Draft 2023-2031 Housing Element
10-48 Initial Draft 2023-2031 Housing Element August 2022
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
media, technological nonprofit
organizations and traditional in
person outreach methods, such
as the Farmers Market, Library,
and community center, with a
particular focus on reaching the
very low- and low-income
demographic and those who may
not have access to online
resources.
BC Educate Single-Family
Property Owners Regarding In-
Fill Housing Options
Create an distribute educational
materials to include information
about the process to construct
ADU’s, multi-generational
housing, and options available
with Senate Bill SB9.
HE-1.5 Variety of
Housing Choices
HE-1.7 Infill
Opportunities in
Single-Family
Neighborhoods
6.1 Fair Housing
6.4 Affordable
Housing Awareness
Community
Development
Department,
California
Department of
Developmental
Services
Quarterly
January 2023 to
January 2031
None
required
BD Zoning Text Amendments for
Special Needs Housing
Pursuant to recent changes in
State law, the Town’s Municipal
Code may be modified to better
facilitate the provision of a variety
of housing types. These Code
revisions include:
Amend parking standards
for emergency shelters
from a ratio based on the
size of the structure to a
ratio based on the number
of shelter staff (per AB
139).
Eliminate current spacing
requirements between
shelters and residentially
zoned properties and
schools.
Develop and adopt by
right processing
procedures for Low
Barrier Navigation
Centers (per AB 101).
Allow small employee
housing (six or fewer) in
HE-2.7 Equal
Housing and Special
Needs
Community
Development
Department
January 2024 None
required
10. Housing Element
August 2022 Initial Draft 2023-2031 Housing Element 10-49
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
all zone districts where
single-family residential is
permitted.
Affirmatively Furthering Fair Housing Report A
APPENDIX
August 2022 Appendix A A-1
A.1 What is AFFH?
The State of California’s 2018 Assembly Bill (AB 686) requires that all public agencies in the state affirmatively
further fair housing (AFFH) beginning January 1, 2019. Public agencies receiving funding from the U.S.
Department of Housing and Urban Development (HUD) are also required to demonstrate their commitment to
AFFH. The Federal obligation stems from the fair housing component of the Federal Civil Rights Act mandating
Federal fund recipients to take “meaningful actions” to address segregation and related barriers to fair housing
choice.
AB 686 requires all public agencies to “administer programs and activities relating to housing and community
development in a manner that affirmatively furthers fair housing, and take no action inconsistent with this
obligation.”1
AB 686 also makes changes to Housing Element Law to incorporate requirements to AFFH as part of the housing
element and General Plan to include an analysis of fair housing outreach and capacity, integration and
segregation, access to opportunity, disparate housing needs, and current fair housing practices.
Affirmatively Furthering Fair Housing
“Affirmatively furthering fair housing” means taking meaningful actions, in addition to
combating discrimination, that overcome patterns of segregation and foster inclusive communities
free from barriers that restrict access to opportunity based on protected characteristics.
Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken
together, address significant disparities in housing needs and in access to opportunity, replacing
segregated living patterns with truly integrated and balanced living patterns, transforming racially
and ethnically concentrated areas of poverty into areas of opportunity, and fostering and
maintaining compliance with civil rights and fair housing laws. The duty to affirmatively further fair
housing extends to all of a public agency’s activities and programs relating to housing and
community development. (Gov. Code, § 8899.50, subd.(a)(1).)”
Source: California Department of Housing and Community Development Guidance, 2021, page 14.
A.2 History of Segregation in the Region
The United States’ oldest cities have a history of mandating segregated living patterns and Northern California
cities are no exception. ABAG, in its recent Fair Housing Equity Assessment, attributes segregation in the Bay
Area to historically discriminatory practices, highlighting redlining and discriminatory mortgage approvals as well
as “structural inequities” in society, and “self-segregation” (i.e., preferences to live near similar people).
Researcher Richard Rothstein’s 2017 book The Color of Law: A Forgotten History of How Our Government
Segregated America chronicles how the public sector contributed to the segregation that exists today. Rothstein
highlights several significant developments in the Bay Area region that played a large role in where the region’s
non-White residents settled.
In 1955, builders began developing workforce housing for the Ford Corporation’s plant in the Bay Area, including
Santa Clara County. Initially the units were segregated as no one would sell to the local Black/African American
workers. The American Friends Service Committee (AFSC) worked to find builders who would build integrated
1 California Department of Housing and Community Development Guidance, 2021, page 9.
Public Draft 2023-2031 Housing Element
A-2 Appendix A August 2022
subdivisions. Unfortunately, after four purchased plots were subsequently rezoned to prevent integrated housing,
the original builder quit. After multiple additional iterations, Black/African American workers had “become so
discouraged about finding housing opportunities” that they began carpooling from outside cities such as
Richmond 2.
A 2018 Berkeley publication titled, Racial Segregation in the San Francisco Bay Area, describes Los Gatos
among the “most segregated, heavily white cities in the county” with Santa Clara County containing “no truly
integrated city”3. The study also delved into the history of segregation, highlighting 1960s-era laws and practices
connected to urban renewal projects that displaced established communities of color. This was coupled with the
building of transportation infrastructure that resulted in a net loss of affordable housing due to a lack of one-for-
one replacement.
History of Segregation in the Region
This history of segregation in the region is important not only to understand how residential
settlement patterns came about—but, more importantly, to explain differences in housing
opportunity among residents today. In sum, not all residents had the ability to build housing
wealth or achieve economic opportunity. This historically unequal playing field in part determines
why residents have different housing needs today.
In addition to historical discriminatory practices that embedded segregation into living patterns throughout the Bay
Area, it’s also necessary to recognize the historical impacts of colonization and genocide on Indigenous
populations and how the effects of those atrocities are still being felt today. The original inhabitants of present-
day San Mateo County are the Ramaytush Ohlone, who have “…lived on the San Francisco Peninsula for
thousands of years and continue to live here as respectful stewards of the land”4. However, “[d]ue to the
devastating policies and practices of a succession of explorers, missionaries, settlers, and various levels of
government over the centuries since European expansion, the Ramaytush Ohlone lost the vast majority of their
population as well as their land”5. The lasting influence of these policies and practices have contributed directly to
the disparate housing and economic outcomes collectively experienced by Native populations today 6.
The timeline of major Federal Acts and court decisions related to fair housing choice and zoning and land use
appears on the following page.
As shown in the timeline, exclusive zoning practices were common in the early 1900s. Courts struck down only
the most discriminatory and allowed those that would be considered today to have a “disparate impact” on
classes protected by the Fair Housing Act. For example, the 1926 case Village of Euclid v. Amber Realty Co.
(272 U.S. 365) supported the segregation of residential, business, and industrial uses, justifying separation by
characterizing apartment buildings as “mere parasite(s)” with the potential to “utterly destroy” the character and
desirability of neighborhoods. At that time, multifamily apartments were the only housing options for people of
color, including immigrants.
2 Source: book The Color of Law: A Forgotten History of How Our Government Segregated America by Richard
Rothstein, p 121.
3 Racial Segregation in the San Francisco Bay Area, Part 1 | Othering & Belonging Institute (berkeley.edu)
4 https://www.smcoe.org/for-communities/indigenous-people-of-san-mateo-county.html
5 https://www.smcoe.org/for-communities/indigenous-people-of-san-mateo-county.html
6 https://www.americanprogress.org/article/systemic-inequality-displacement-exclusion-segregation/
Appendix A. AFFH Report
August 2022 Appendix A A-3
The Federal Fair Housing Act was not enacted until nearly 60 years after the first racial Zoning Ordinances
appeared in U.S. cities. This coincided with a shift away from Federal control over low-income housing toward
locally-tailored approaches (block grants) and market-oriented choice (Section 8 subsidies), the latter of which is
only effective when adequate affordable rental units are available.
Major Public and Legal Actions that Influence Fair Access to Housing
A.3 Report Content and Organization
This Fair Housing Assessment follows the April 2021 State of California State Guidance for AFFH.
Section I. Fair Housing Enforcement and Outreach Capacity reviews lawsuits/enforcement
actions/complaints against the jurisdiction; compliance with State fair housing laws and regulations; and
jurisdictional capacity to conduct fair housing outreach and education.
Section II. Integration and Segregation identifies areas of concentrated segregation, degrees of segregation,
and the groups that experience the highest levels of segregation
Section III. Access to Opportunity examines differences in access to education, economic development, and
healthy environments.
Section IV. Disparate Housing Needs identifies which groups have disproportionate housing needs including
displacement risk.
Section V. Contributing Factors and Fair Housing Action Plan identifies the primary factors contributing to
fair housing challenges and the Plan for taking meaningful actions to improve access to housing and economic
opportunity.
Public Draft 2023-2031 Housing Element
A-4 Appendix A August 2022
Appendices
Map and Data packet, including Fair Housing Organizations in Santa Clara County—mission, services,
and contact information
State Fair Housing Laws and Regulations—summary of key State laws and regulations related to
mitigating housing discrimination and expanding housing choice
A.4 Primary Findings
This section summarizes the primary findings from the Fair Housing Assessment for Los Gatos including the
following sections: fair housing enforcement and outreach capacity, integration and segregation, access to
opportunity, disparate housing needs, and contributing factors and the Town’s Fair Housing Action Plan.
Population growth trends in Los Gatos are significantly lower than the county and regional index rates.
The Town has grown 15 percent since 1990, while Santa Clara County grew by 31 percent.
Los Gatos diverges from the county and region overall in racial composition with more than double the
county share of non-Hispanic White population (72 percent versus 32 percent for Santa Clara County).
Yet Los Gatos’ residents have grown more racially diverse since 2000 with the non-Hispanic white
population declining by 14 percentage points and Asian residents increasing in population from eight
percent to 15 percent in 2019.
Conversely, the types of households in Los Gatos mirror the county and are similar to the Bay Area with 58
percent married couples (57 percent in Santa Clara County and 51 percent in the Bay Area). Household
size is in line with the county, except for five or more person households, for which Los Gatos has a
smaller share.
Los Gatos has a higher share of high-income earners (greater than 100 percent AMI) than the county and
Bay Area (65 percent versus 55 percent and 52 percent respectively). Accounting for race and ethnicity,
Asian households are much more likely to comprise high income earners (72 percent), especially when
compared to Black/African American and Hispanic households (50 percent and 46 percent, respectively).
In 2015, the income segregation in Los Gatos between lower-income residents and other residents was
higher than the average value for Bay Area jurisdictions. Segregation also exists among racial groups, yet
is slowly declining.
Poverty rates are minimal but do vary across races and ethnicities with Hispanic residents experiencing
the highest poverty rate (although still a very low six percent) and Black/African Americans the lowest (0.7
percent).
The job to household ratio for Los Gatos tracks closely with Bay Area and is lower than Santa Clara
County’s (Figure III-4), indicating that Los Gatos is less of a commuter Town than surrounding jurisdictions
with much higher job to household ratios. This differs, however, by wage (Figure III-5), with jobs to
household ratios much higher for low wage workers who cannot afford to live in the Town. Los Gatos has
twice as many jobs as workers for low wage jobs.
Los Gatos’ housing opportunities are limited by pricing, and both rental and home values are higher than
the county median. Eighty-three percent of houses are valued at more than $1 million; Zillow reports Los
Gatos’ market average value at more than $3 million. The average value of homes in Los Gatos is 63
percent higher than the county’s $1.3 million average value. Sixty-three percent of rentals charge $2,000
or more a month, compared to 56 percent in Santa Clara County. Los Gatos does not have any public
Appendix A. AFFH Report
August 2022 Appendix A A-5
housing and only a small portion of the Town contains any Housing Choice Voucher usage, a minimal 0-5
percent.
Nearly three-quarters of the Town’s housing are single-family units.
Housing cost burden in Los Gatos is lower than nearby cities but differs by race and ethnicity—and by
tenure (renters/owners). Asian households experience the lowest rates of cost burden (30 percent) in the
Town, followed by non-Hispanic White households (31 percent). This is followed by Black/African
American household (34 percent) and Hispanic households (37 percent). Other/Multiple Race households
(45 percent) are the most likely to be cost burdened (45 percent). Owners experience cost burden at a
lower rate (28 percent) than renters (42 percent).
Mortgage denial rates vary little by race and ethnicity, with 55 percent to 65 percent of loans originated.
Other than Asian applicants, however, applications from non-White applicants are very low in numbers.
Saratoga Elementary School, Los Gatos Union Elementary School, and Los Gatos-Saratoga Union High
School Districts serve the majority of Los Gatos residents. The most up-to-date performance rankings
show that the Los Gatos-Saratoga high school with very few Black/African American or Native American
students. Asian students experienced higher educational outcomes compared to other students, scoring
93.8 percent in a 2019 College/Career Indicator metric. White and Hispanic students scored 71 percent
and 64.6 percent, respectively.
A.5 Contributing Factors and Fair Housing Action Plan
The disparities in housing choice and access to opportunity discussed above stem from historical actions in the
broader region, socioeconomic factors that have limited employment and income growth among non-White and
Hispanic residents, and a shortage of housing units built to accommodate growth.
Fair Housing Issue
Los Gatos’ very low production of affordable and market rate housing limits housing choices of all
but the highest income households.
Contributing factors:
Since 2010, Los Gatos added 2,000 residents while only building 342 housing units. This lack of
production has exacerbated an already tight housing market.
The housing that was added in Los Gatos between 2015 and 2019 was largely priced for above moderate-
income households. Only 1.5 percent of housing permits approved were for low- or very- low-income
housing.
Fair Housing Issue
Los Gatos’ lack of affordable housing has a disproportionate impact on low- and moderate-income
households who are more likely to be households of color. As such, Los Gatos lacks racial and
ethnic diversity relative to the county overall.
Public Draft 2023-2031 Housing Element
A-6 Appendix A August 2022
Contributing factors:
Black or African American and Hispanic residents typically work lower wage jobs, stemming from historical
employment discrimination and lack of access to quality educational environments. These jobs do not
support the Town’s very high housing costs.
Low wage jobs are necessary to support higher wage industries. Los Gatos’ employment growth has not
been adequately supported by affordable housing development. As such, there are twice as many low
wage jobs as residents in Los Gatos who work those jobs.
Fair Housing Issue
Los Gatos’ households are segregated by income, and income segregation is higher in the Town
than in other Bay Area jurisdictions.
Contributing factors:
Lack of affordable housing overall.
Segregation of the limited affordable housing that does exist into the north central portion of the Town.
Fair Housing Issue
Los Gatos feeds to high performing schools, yet, except for Asian students, students of color
cannot take advantage of these learning opportunities because they cannot afford to live in Los
Gatos.
Contributing factors:
Lack of affordable housing overall.
A.6 Fair Housing Enforcement and Outreach Capacity
This section discusses fair housing legal cases and inquiries, fair housing protections and enforcement, and
outreach capacity.
Fair housing legal cases and inquiries. California fair housing law extends beyond the protections in the Federal
Fair Housing Act (FHA). In addition to FHA protected classes—race, color, ancestry/national origin, religion,
disability, sex, and familial status—California law offers protections for age, sexual orientation, gender identity or
expression, genetic information, marital status, military or veteran status, and source of income (including Federal
housing assistance vouchers).
The California Department of Fair Employment in Housing (DFEH) was established in 1980 and is now the largest
civil rights agency in the United States. According to their website, DFEH’s mission is, “to protect the people of
California from unlawful discrimination in employment, housing and public accommodations (businesses) and
Appendix A. AFFH Report
August 2022 Appendix A A-7
from hate violence and human trafficking in accordance with the Fair Employment and Housing Act (FEHA),
Unruh Civil Rights Act, Disabled Persons Act, and Ralph Civil Rights Act”7.
DFEH receives, evaluates, and investigates fair housing complaints. DFEH plays a particularly significant role in
investigating fair housing complaints against protected classes that are not included in Federal legislation and,
therefore, not investigated by HUD. DFEH’s website provides detailed instructions for filing a complaint, the
complaint process, appealing a decision, and other frequently asked questions 8. Fair housing complaints can
also be submitted to HUD for investigation.
Additionally, Santa Clara County has a number of local resource and enforcement organizations:
Project Sentinel: Assists with housing discrimination, mortgage foreclosures, rental issues, and more.
Housing and Economic Rights Advocates (HERA) provides legal and advocacy for vulnerable Californians
facing discrimination and economic abuses.
Bay Area Legal Aid engages in broad advocacy focused on helping low-income Bay Area residents lead
stable lives, including housing stability.
The Law Foundation of Silicon Valley provides legal advocacy for social change with a focus on finding
stable homes for low-income residents.
Senior Adults Legal Assistance is a law office dedicated to supporting elder residents obtain independent
living.
From 2013 to 2021, 391 fair housing complaints in Santa Clara County were filed with the U.S. Department of
Housing and Urban Development (HUD) or Fair Housing Advocates of Northern California (FHANC). Most of the
county’s valid complaints cited disability status as the bias. Of these complaints, 69 percent were considered
valid and proceeded to actionable responses. Los Gatos had eight total complaints.
Nationally, the National Fair Housing Alliance (NFHA) reported a “negligible” decrease in the number of
complaints filed between 2019 and 2020. The primary bases for complaints nationally of disability (55 percent)
were represented in Santa Clara County at a much lower rate (16 percent). Familial status represented eight
percent of complaints nationally, similar to the six percent of cases in the county.
NFHA identifies three significant trends in 2020 that are relevant for this AFFH:
First, fair lending cases referred to the Department of Justice from Federal banking regulators has been
declining, indicating that State and local government entities may want to play a larger role in examining
fair lending barriers to homeownership.
7 https://www.dfeh.ca.gov/aboutdfeh/
8 https://www.dfeh.ca.gov/complaintprocess/
Public Draft 2023-2031 Housing Element
A-8 Appendix A August 2022
Second, NFHA identified a significant increase in the number of complaints of harassment—1,071
complaints in 2020 compared to 761 in 2019.
Appendix A. AFFH Report
August 2022 Appendix A A-9
Finally, NFHA found that 73 percent of all fair housing complaints in 2020 were processed by private fair
housing organizations, rather than State, local, and Federal government agencies—reinforcing the need
for local, active fair housing organizations and increased funding for such organizations 9.
Outreach and capacity. Santa Clara County, including Los Gatos, has a number of organizations dedicated to
assisting residents with legal services related to housing discrimination and general housing disputes. These
organizations are listed in Figure I-1 of the map and data appendix.
The Town also maintains a resource guide that highlights service providers across multiple categories focused on
housing and quality of life for underserved members of the community 10. Additionally, the Town provides links
and email addresses for citizens to participate in the ongoing Housing Element Update process, including links to
the agendas and staff reports for the Housing Element Advisory Board (HEAB) meetings.
Finally, the Town has a strong statement about inclusivity and directly addresses hate speech on its website 11.
Compliance with State law. Los Gatos is compliant with the following State laws that promote fair and
affordable housing. The Town has not been alleged or found in violation of the following:
Housing Accountability Act (Gov. Code. Section 65589.5) requiring adoption of a Housing Element and
compliance with RHNA allocations;
No Net Loss Law (Gov. Code Section 65863) requiring that adequate sites be maintained to
accommodate unmet RHNA allocations;
Least Cost Zoning Law (Gov. Code. Section 65913.1);
Excessive Subdivision Standards Law (Gov. Code. Section 65913.2);
Limits on Growth Controls Law (Gov. Code. Section 65589.5).
Housing specific policies enacted locally.
Los Gatos offers a density bonus program to comply with State law.
It also has an affordable housing overlay zone; however, that zone applies to one property only.
The Town allows relative diverse type of housing in residential zones. However, minimum lot area for
duplexes is quite generous (8,000 square feet). The Town could add flexibility for affordable duplexes—
particularly in areas near and within downtown.
The Town requires that development of Accessory Dwelling Units under Town incentive programs be
affordable and deed restricted to 80 percent AMI households.
The Town’s Below Market Price program requirements apply to developments of five units and more and
require between 10 percent and 20 percent of units to be affordable to low- and moderate-income
households. In-lieu fees are only allowed in limited circumstances, which prioritizes unit development.
9 https://nationalfairhousing.org/2021/07/29/annual-fair-housing-report-shows-increase-in-housing-
harassment/
10 Los-Gatos-Housing-Resources-Guide (losgatosca.gov)
11 https://www.losgatosca.gov/2604/Becoming-an-Inclusive-Community
Public Draft 2023-2031 Housing Element
A-10 Appendix A August 2022
Publicly-Assisted Housing. According to the California Department of Housing and Community Development
AFFH Data Viewer (HCD data viewer), Los Gatos does not have any public housing buildings. Additionally, only
a small portion of Los Gatos contains any Housing Choice Voucher usage, a minimal zero to five percent.
A.7 Integration and Segregation
This section discusses integration and segregation of the population by protected classes including race and
ethnicity, disability status, familial status, and income status. The section concludes with an analysis of racially
and ethnically concentrated areas of poverty and affluence.
Integration and Segregation
“Integration generally means a condition in which there is not a high concentration of persons of
a particular race, color, religion, sex, familial status, national origin, or having a disability or a
particular type of disability when compared to a broader geographic area.
Segregation generally means a condition in which there is a high concentration of persons of a
particular race, color, religion, sex, familial status, national origin, or having a disability or a type of
disability in a particular geographic area when compared to a broader geographic area.”
Race and ethnicity. Los Gatos differs from the county and Bay Area overall for its relatively high proportion of
residents identifying as non-Hispanic White (72 percent in Los Gatos compared to 32 percent in Santa Clara
County) and small Hispanic population (eight percent in Los Gatos and 25 percent in the county).
Los Gatos’ proportion of Black/African American and Other and mixed-race residents is similar to the
county, but one-sixth of the proportion in the Bay Area overall.
Los Gatos’ residents have grown more racially diverse since 2000 largely due to growth in Asian and
Hispanic residents (Figure II-2).
Older residents are less racially diverse than other age groups, with 87 percent of the population older than
65 years identifying as White compared to 77 percent of those aged 18 to 24 and 75 percent of children
less than 18 years old. The main shift is the inclusion of more diverse populations in younger age groups,
especially among Asian/API and Other/Multiple race residents, see Figure II-3.
Poverty rates are very low for all residents including residents of color. Black/African American have the
lowest poverty rate at less than 1 percent. The highest poverty rate was 6.1 percent among Hispanic
residents (Figure II-5).
Similarly, Hispanic households also have the lowest share of residents earning greater than 100 percent of
AMI (46 percent, see Figure II-5) with Asian/API residents experiencing the highest share (72 percent).
Geospatially, almost all census tracts in Los Gatos have a predominantly White population (Figure II-7).
Compared with neighboring Monte Sereno, Los Gatos has a more varied neighborhood composition map and a
more even dispersion of residents of varied races and ethnicities, see Figure II-10. Overall, the Town has low to
moderate diversity (Figures II-11 and II-12). The Town’s diversity index has improved since 2010 due to changes
in racial and ethnic diversity in the northern and eastern portions of Town.
The Association of Bay Area Governments (ABAG), working with UC Merced, created a 2021 report on
segregation in Los Gatos that measured racial and income segregation within the community. This report, in its
entirety can be found in Appendix G. That report utilized several common measures of segregation:
Appendix A. AFFH Report
August 2022 Appendix A A-11
The Dissimilarity Index, or DI, is a common tool that measures segregation in a community. DI is an index
that measures the degree to which two distinct groups are evenly distributed across a geographic area. DI
represents the percentage of a group’s population that would have to move for each area in the county to
have the same percentage of that group as the county overall. DI values range from zero to 100—where
zero is perfect integration and 100 is complete segregation. Dissimilarity index values between zero and
39 generally indicate low segregation, values between 40 and 54 generally indicate moderate segregation,
and values between 55 and 100 generally indicate a high level of segregation.
The isolation index is interpreted as the probability that a randomly drawn minority resident shares an area
with a member of the same minority, it ranges from zero to 100 and higher values of isolation tend to
indicate higher levels of segregation.
ABAG’s assessed measures of segregation above highlighted White residents as the most segregated in Los
Gatos. White residents are more likely than any other racial group to live in a neighborhood where they are
unlikely to come into contact with other racial groups. However, White residents are becoming less isolated over
time—and segregation in Los Gatos is decreasing.
Segregation by income increased between 2010 and 2015. In 2015, the income segregation in Los Gatos
between lower-income residents and other residents was higher than the average value for Bay Area jurisdictions.
Disability status. The share of the population living with at least one disability is nine percent in Los Gatos
compared to eight percent in Santa Clara County. Roughly a third of census tracts in Los Gatos contain 10
percent to20 percent of persons with a disability, higher than most of the surrounding jurisdictions (Figure II-14).
Familial status. Familial status can indicate specific housing needs and preferences. A larger number of non-
family or single person households indicates a higher share of seniors living alone, young adults living alone or
with roommates, and unmarried partners. Higher shares of nonfamily households indicate an increased need for
one- and two-bedroom units.
Los Gatos’ households are as likely to be three to four person households (34 percent) as two person households
(35 percent). Compared to the county and Bay Area overall, Los Gatos mirrors the share of one person
households (26 percent compared to 20 percent in the county and 25 percent for the Bay Area). Married couple
households were the majority household type (58 percent) and 31 percent of all households have at least one
child under the age of 18. The share of single persons and female-headed households mirror the makeup in the
Bay Area (Figure II-17).
The Town has no concentrations of adults living alone, suggesting that access to in-home services and care for
single, older adults is less critical for Los Gatos than some surrounding communities within the county. However,
the Town’s age distribution has shifted upwards since 2000 (Figure II-15) and these accommodations may grow
in demand if older adults, 55 and older, in Los Gatos age in place.
Los Gatos’ married couples overwhelmingly own housing: seventy-seven percent of married couple families in the
Town own their homes (Figure II-19).
Renters are more likely to occupy studios and one- and two-bedroom units than owners (Figure II-20), and
owners are more likely to be occupying three to four- and 5 or more-bedroom units. Owners and renters are
equally as likely to live alone.
Household income. Los Gatos’ households are higher-income than the county and Bay Area overall: 65 percent
of Los Gatos households earn more than 100 percent of the AMI, compared to 55 percent for the county and 52
percent for the Bay Area (Figure II-25, and infographic below).
Every block group in Los Gatos with available data has a median household income of $125,000 or more (Figure
II-26). There are no block groups in the Town where most households earn less than the HUD 2020 Median
State Income and no areas of concentrated poverty (Figure II-28), although the central part of Town has between
25 percent and 50 percent of households who are low- to moderate-income.
Public Draft 2023-2031 Housing Element
A-12 Appendix A August 2022
Racially or ethnically concentrated areas of poverty and affluence. Racially Concentrated Area of Poverty or an
Ethnically Concentrated Area of Poverty (R/ECAP) and Racially Concentrated Areas of Affluence (RCAAs)
represent opposing ends of the segregation spectrum from racially or ethnically segregated areas with high
poverty rates to affluent predominantly White neighborhoods. Historically, HUD has paid particular attention to
R/ECAPs as a focus of policy and obligations to AFFH. Recent research out of the University of Minnesota
Humphrey School of Public Affairs argues for the inclusion of RCAAs to acknowledge current and past policies
that created and perpetuate these areas of high opportunity and exclusion 12.
It is important to note that R/ECAPs and RCAAs are not areas of focus because of racial and ethnic
concentrations alone. This study recognizes that racial and ethnic clusters can be a part of fair housing choice if
they occur in a non-discriminatory market. Rather, R/ECAPs are meant to identify areas where residents may
12 Goetz, E. G., Damiano, A., & Williams, R. A. (2019). Racially Concentrated Areas of Affluence: A
Preliminary Investigation. Cityscape: A Journal of Policy Development and Research, 21(1), 99–124
Segregation and Integration
Population by Protected Class
City of Los Gatos Santa Clara County
Race and Ethnicity
American Indian or Alaska Native, NH 0%0%
Asian / API, NH 15%37%
Black or African American, NH 1%2%
White, Non-Hispanic (NH)72%32%
Other Race or Multiple Races, NH 4%4%
Hispanic or Latinx 8%25%
Disability Status
With a disability 9%8%
Without a disability 91%92%
Familial Status
Female-Headed Family Households 8%10%
Male-headed Family Households 3%5%
Married-couple Family Households 58%57%
Other Non-Family Households 5%8%
Single-person Households 26%20%
Household Income
0%-30% of AMI 9%14%
31%-50% of AMI 8%11%
51%-80% of AMI 9%11%
81%-100% of AMI 9%9%
Greater than 100% of AMI 65%55%
0%
15%
1%
72%
4%
8%
0%
37%
2%
32%
4%
25%
9%
91%
8%
92%
8%
3%
58%
5%
26%
10%
5%
57%
8%
20%
9%
8%
9%
9%
65%
14%
11%
11%
9%
55%
Appendix A. AFFH Report
August 2022 Appendix A A-13
have historically faced discrimination and continue to be challenged by limited economic opportunity, and
conversely, RCAAs are meant to identify areas of particular advantage and exclusion.
R/ECAPs
HCD and HUD’s definition of a Racially/Ethnically Concentrated Area of Poverty is:
A census tract that has a non-White population of 50 percent or more (majority-minority)
or, for non-urban areas, 20 percent, AND a poverty rate of 40 percent or more; OR
A census tract that has a non-white population of 50 percent or more (majority-minority)
AND the poverty rate is three times the average tract poverty rate for the County,
whichever is lower.
Source: California Department of Housing and Community Development Guidance, 2021.
For this study, the poverty threshold used to qualify a tract as an R/ECAP was three times the average census
tract poverty rate countywide, or 22.5 percent.
There are no census tracts in Los Gatos that qualify as R/ECAPs. R/ECAPs in the county are all located in San
Jose.
RCAAs. At the time this report was written, HCD and HUD had not established standard definitions for Racially or
Ethnically Concentrated Areas of Affluence (RCAAs). However, these are generally understood to be
neighborhoods in which there are both high concentrations of non-Hispanic White households and high
household income rates. Comparing Los Gatos to the surrounding county and region, it is safe to speculate that
the Town has more RCAAs as other communities, the county, and the region.
A.8 Access to Opportunity
This section discusses disparities in access to opportunity among protected classes including access to quality
education, employment, and environment.
Access to Opportunity
“Access to opportunity is a concept to approximate place-based characteristics linked to critical
life outcomes. Access to opportunity oftentimes means both improving the quality of life for
residents of low-income communities, as well as supporting mobility and access to ‘high resource’
neighborhoods. This encompasses education, employment, economic development, safe and
decent housing, low rates of violent crime, transportation, and other opportunities, including
recreation, food and healthy environment (air, water, safe neighborhood, safety from
environmental hazards, social services, and cultural institutions).”
Source: California Department of Housing and Community Development Guidance, 2021, page 34.
The California Tax Credit Allocation Committee (TCAC) in collaboration with HCD developed a series of
opportunity maps that help to identify areas of the community with good or poor access to opportunity for
residents. These maps were developed to align funding allocations with the goal of improving outcomes for low-
income residents—particularly children.
Public Draft 2023-2031 Housing Element
A-14 Appendix A August 2022
The opportunity maps highlight areas of highest resource, high resource, moderate resource, moderate resource
(rapidly changing), low resource and high segregation and poverty. TCAC provides opportunity maps for access
to opportunity in quality education, employment, transportation, and environment. Opportunity scores are
presented on a scale from zero to one and the higher the number, the more positive the outcomes.
TCAC’s economic opportunity score comprises poverty, adult educational attainment, employment, job proximity,
and median home value and is shown in Figure III-6. Essentially all areas of Los Gatos have high economic
opportunity (> 0.75).
Education. TCAC’s education score is based on math proficiency, reading proficiency, high school graduation
rates, and the student poverty rate. According to TCAC’s educational opportunity map, every census tract in Los
Gatos scores higher than 0.75—indicating the highest positive educational outcomes. Opportunity scores are
presented on a scale from zero to one and the higher the number, the more positive the outcomes.
Los Gatos is served by the Los Gatos-Saratoga Union High School District, the Los Gatos Union Elementary
School, the Saratoga Elementary School Districts, Loma Prieta Joint Union Elementary, and Lakeside Joint
School District. The most complete data, due to halted data collection during the COVID pandemic, was from
2019 and highlights a 97.7 percent graduation rate among all students in the Los Gatos-Saratoga Union high
school, a small increase over 2018 (97.1 percent). When broken down by race/ethnicity, Asian students
graduated at a slightly higher rate of 98 percent, while Hispanic and White students graduated at 95 percent and
96.5 percent respectively. There were not enough African American students enrolled to provide accurate data
(less than 11 total). The lowest graduation rate was among students with a disability, yet still relatively high at 88
percent.
The Los Gatos Union Elementary served 2,710 students in 2021, down from 3,024 from 2019, the last year with
complete data. White students accounted for 64 percent of the student body, with Asian (19 percent) and
Hispanic students (9 percent) accounting for the majority of the remainder. The school included four percent
socioeconomically disadvantaged students, one homeless student, and seven percent students with a disability.
Saratoga Elementary had 1,657 students in 2021 and 1,765 in 2019. At Saratoga, 57 percent of students are
Asian and White students accounted for 26 percent and Hispanic students another six percent. Saratoga
Elementary served a student population with 11 percent disabilities, two percent socioeconomically
disadvantaged, and no homeless students.
Employment. The job to household ratio for Los Gatos tracks closely with Bay Area and is lower than Santa Clara
County’s (Figure III-4), indicating that Los Gatos is less of a commuter city than surrounding jurisdictions with
much higher job to household ratios. This differs, however, by wage (Figure III-5), with jobs to household ratios
much higher for low wage workers who cannot afford to live in the Town. Los Gatos has twice as many jobs as
workers for low wage jobs.
Notably, Los Gatos had 19,843 jobs (Figure III-2) in 2018 compared to 14,573 job holders (Figure III-3),
indicating a healthy job market for local residents and a need for in-commuting to fill the unoccupied jobs.
Most jobs in Los Gatos are in Health & Education Services (Figure III-1), which has historically been the
dominant industry in the Town except during the Great Recession. Professional and Managerial Service
jobs in the Town are growing faster than any other industry.
Job holders are most likely to work in the fields of Professional and Managerial Services (likely occupying
jobs in Los Gatos and San Jose) and Health & Education Services (Figure III-3).
Unemployment in Los Gatos is five percent, below the county and area averages.
HUD’s job proximity index shows that Los Gatos offers a moderate to high proximity to jobs. On a scale from zero
to 100, where 100 is the closest proximity to jobs, the areas near Highway 17 score within the high proximity
Appendix A. AFFH Report
August 2022 Appendix A A-15
range, while most of the remaining parts of the Town scores as moderate proximity (Figure III-7). The further
away from Highway 17, the lower the proximity to jobs.
Environment. TCAC’s opportunity areas environmental scores are based on the CalEnviroScreen four indicators,
which identify areas disproportionately vulnerable to pollution sources such as ozone, PM2.5, diesel PM,
pesticides, toxic release, traffic, cleanup sites, groundwater threats, hazardous waste, impaired water bodies, and
solid waste sites.
Three-quarters of Los Gatos scores low on positive environmental outcomes, with no census tracts in the Town
scoring over 0.5 out of one (Figure III-8). Los Gatos almost uniformly had the lowest possible scores according to
the CalEnviroScreen metric for 2021, Figure III-9. Conversely, the Town scores high on California Healthy Places
Index (HPI) developed by the Public Health Alliance of Southern California (PHASC) (Figure III-10). It is not clear
which is more reflective of the area’s environmental health, but Los Gatos scores poorly due to groundwater
contamination and traffic pollution, similar to neighboring Monte Sereno.
HPI includes 25 community characteristics in eight categories including economic, social, education,
transportation, neighborhood, housing, clean environment, and healthcare 13.
Disparities in access to opportunity. All residents live in highly resourced areas, regardless of race or ethnicity
(Figure III-11). Los Gatos and other surrounding areas are entirely high opportunity jurisdictions.
The Social Vulnerability Index (SVI) provided by the Center for Disease Control (CDC)—ranks census tracts
based on their ability to respond to a disaster—includes four themes of socioeconomic status, household
composition, race or ethnicity, and housing and transportation. Los Gatos scores well on the SVI; with no
neighborhoods ill equipped to respond to disasters, as shown in Figure III-14.
Figure III-15 shows Los Gatos does not have any disadvantaged communities as defined under SB 535 as, “the
top 25 percent scoring areas from CalEnviroScreen along with other areas with high amounts of pollution and low
populations”14.
Disparities specific to the population living with a disability. Nine percent of the population in Los Gatos is living
with at least one disability, compared to eight percent in the county. The most common disabilities in Los Gatos
are ambulatory (4.8 percent), independent living difficulty (4.3 percent), and hearing difficulty (3.6 percent). For
the population 65 and over, the share of the population with ambulatory difficulties increases to 18.4 percent,
independent living difficulty increase to 15.2 percent, and hearing difficulty was 13.8 percent. 15 percent of
residents with a disability were unemployed in 2019, while only four percent unemployment for residents without a
disability.
Disability
“Disability types include hearing difficulty, vision difficulty, cognitive difficulty, ambulatory
difficulty, self-care difficulty, and independent living difficulty.”
13 https://healthyplacesindex.org/about/
14 https://oehha.ca.gov/calenviroscreen/sb535
Public Draft 2023-2031 Housing Element
A-16 Appendix A August 2022
Source: California Department of Housing and Community Development Guidance, 2021, page 36.
A.9 Disproportionate Housing Needs
This section discusses disparate housing needs for protected classes including cost burden and severe cost
burden, overcrowding, substandard housing conditions, homelessness, displacement, and other considerations.
Disproportionate Housing Needs
“Disproportionate housing needs generally refers to a condition in which there are significant
disparities in the proportion of members of a protected class experiencing a category of housing
need when compared to the proportion of members of any other relevant groups, or the total
population experiencing that category of housing need in the applicable geographic area. For
Access to Opportunity
Regional Access
City of Los Gatos Santa Clara County
Jobs to Household Ratio 1.59 1.71
Unemployment Rate 5%6%
LEP Population 2%9%
Share of Population by Race in Resource Areas in the City of Los Gatos
Employment by Disability Status
For those in the labor
0%0%
16%
0%
1%
0%
70%
0%
4%
0%
9%
Moderate Resource Area
High/Highest Resource Area
American Indian or Alaska Native, NH Asian / API, NH
Black or African American, NH White, Non-Hispanic (NH)
Other Race or Multiple Races, NH Hispanic or Latinx
96%
85%
4%
15%
No Disability
With A Disability
City of Los Gatos
96%
90%
4%
10%
No Disability
With A Disability
Employed Unemployed
Santa Clara County
Town
Town
Appendix A. AFFH Report
August 2022 Appendix A A-17
purposes of this definition, categories of housing need are based on such factors as cost burden
and severe cost burden, overcrowding, homelessness, and substandard housing conditions.”
Source: California Department of Housing and Community Development Guidance, 2021, page 39.
Housing Needs. Since 2015, the housing that has received permits to accommodate growth has almost
exclusively been priced for the higher incomes, with only two units permitted for low-income households and none
for very low-income households.
The vast majority of the Town’s homes were built between 1940 and 1979 (69 percent). After this period,
housing production slowed, with only three percent of units built since 2010.
Los Gatos housing is becoming more limited by type with 76 percent single-family units, up from 71
percent in 2010. Multifamily housing, with five or more units, made up the second highest category of units
(18 percent); there were sixty-four mobile/manufactured homes in Los Gatos 15.
Eighty-four percent of owner-occupied homes in Los Gatos are valued over $one million with another 39
percent valued above $two million. This compares to 48 percent for the county and 35 percent for the Bay
Area overall (Figure IV-4). According to the Zillow Home Value Index, home values in Los Gatos are 63
percent higher than home values for the county and almost double the cost of housing in the Bay Area
(Figure IV-5).
Rents in Los Gatos are most likely to be at least $2,000 per month (63 percent); 24 percent rent for $3,000
per month. While the Town’s rental costs higher than in the county, the trend of increasing rental costs
matches the changes in the county and Bay Area overall.
Cost burden and severe cost burden. Despite Los Gatos’ comparably high housing costs, cost burden—which
occurs when households spend more than 30 percent of their gross income on housing costs—is slightly better
than the county and Bay Area (Figure IV-8). This is indicative of a market with high barriers to entry. The lack of
publicly subsidized housing and opportunity for use of Housing Choice Vouchers limits the ability of low-income
households (who are typically cost burdened) to live in the Town.
Cost burden does vary by tenure (renter or ownership) in Los Gatos, Figure IV-9. Renters experience a greater
share of all forms of cost burden (42 percent) while owners experienced 28 percent cost burden. The cost burden
by income decreases for each increase in earned income (AMI category) with a vast difference between the
highest and lowest income groups (16 percent versus 90 percent). Seventy-eight percent of the lowest income
group (zero percent to30 percent of AMI) pay more than 50 percent of their gross household incomes in housing
costs.
There is consistency in housing cost burden in Los Gatos by race and ethnicity. All households have similar
shares of residents paying less than 30 percent of their income on housing. Hispanic and Black/African American
residents were the only groups to experience a greater percentage of households spending 50 percent or more of
their income than 30 percent to50 percent of their income, indicating larger shares of extreme cost burdens, see
Figure IV-11.
Overcrowding. The vast majority of households (97 percent) in Los Gatos are not overcrowded—indicated by
more than one occupant per room. Renter households are more likely to be overcrowded, with six percent of
15 Housing Needs Data Report: Los Gatos, ABAG/MTC Staff and Baird + Driskell Community Planning, 2021.
Public Draft 2023-2031 Housing Element
A-18 Appendix A August 2022
renter households with more than one occupant per room, compared to 0.3 percent of owner households (Figure
IV-16).
Hispanic residents experience the highest rates of overcrowding (seven percent) (Figure IV-17). The rest of the
Town’s population experiences approximately two percent to 3.5 percent overcrowding.
Substandard housing. Data on housing condition are limited, with the most consistent data available across
jurisdictions found in the American Community Survey (ACS)—which captures units in substandard condition as
self-reported in Census surveys. Renters in Los Gatos report living in substandard housing in 5.5 percent of
housing units, with the more units lacking complete kitchen facilities (4.1 percent). About 0.4 percent of owner
households are lacking complete kitchens and 0.6 percent lack complete plumbing.
Homelessness. In 2019, 9,706 people were experiencing homelessness in the county during the one-day count
(point-in-time), with only 18 percent of people in emergency or transitional shelter while the remaining 82 percent
were unsheltered. The majority of unsheltered people experiencing homelessness were in households without
children. The majority of people in transitional housing were in households with children.
People who identify as American Indian or Alaskan Native (eight percent of the homeless population compared to
less than one percent of the total population), Black (19 percent, two percent), White (44 percent, 32 percent),
and Hispanic (43 percent, 25 percent) are overrepresented in the homeless population compared to their share of
the general population. People struggling with chronic substance abuse (35 percent), severe mental illness (42
percent), and post-traumatic stress disorder (33 percent) represented a substantial share of the homeless
population in 2019. Losing a job or being evicted was reported to be the causal events that led to homelessness
in 44 percent of incidents of homelessness 16.
Displacement. According to the Sensitive Communities map of vulnerable communities (Figure IV-28), one area
north of Highway 9 and west of Highway 17 were vulnerable to displacement. The Town has 169 assisted units,
but all were rated as low risk of conversion.
16 According to Santa Clara County’s Homeless Census & Survey (2019); 2019 SCC Homeless Census and
Survey Exec Summary.pdf (sccgov.org).
Appendix A. AFFH Report
August 2022 Appendix A A-19
Displacement Sensitive Communities
“According to the Urban Displacement Project, communities were designated sensitive if they met
the following criteria:
They currently have populations vulnerable to displacement in the event of increased
redevelopment and drastic shifts in housing cost. Vulnerability is defined as:
Share of very low-income residents is above 20 percent, 2017
AND the tract meets two of the following criteria:
Share of renters is above 40 percent, 2017
Share of people of color is above 50 percent, 2017
Share of very low-income households (50 percent AMI or below) that are severely rent
burdened households is above the county median, 2017
They or areas in close proximity have been experiencing displacement pressures.
Displacement pressure is defined as:
Percent change in rent above county median for rent increases, 2012-2017
OR
Difference between tract median rent and median rent for surrounding tracts above median
for all tracts in county (rent gap), 2017”
Source: https://www.sensitivecommunities.org/.
Access to mortgage loans. In many communities, disparities by race and ethnicity are prevalent for home
mortgage applications, particularly in denial rates. This is less true in Los Gatos (Figure IV-32). Mortgage denial
rates are relatively modest, ranging from 18 percent to 25 percent-with the exception of American Indian/Alaskan
Native applicants (33 percent). It should be noted that only four applications from American Indian/Alaskan
Native applicants were received out of 2,165 in 2018 and 2019. Black/African American residents experienced
the next highest rejection rate, 25 percent, with less than 10 total applications.
Public Draft 2023-2031 Housing Element
A-20 Appendix A August 2022
Disproportionate Housing Needs
Cost Burden, City of Los Gatos, 2019
Area Median Income (AMI)
Overcrowding, City of Los Gatos, 2019
Occupants per Room by Tenure
Substandard Housing, City of Los Gatos, 2019
Incomplete Kitchen and Plumbing Facilities by Tenure
Homelessness, Santa Clara County, 2019
Race and Ethnicity
Share of Homeless
Population
Share of Overall
Population
American Indian or Alaska Native 8%1%
Asian / API 5%37%
Black or African American 19%2%
White 44%44%
Other Race or Multiple Races 24%16%
Displacement, 2020
Assisted Units at High or Very
High Risk of Displacement City of Los Gatos Santa Clara County
Number of Units 0 0
% of Assisted Units 0%0%
10%
28%
39%
49%
84%
12%
22%
38%
33%
12%
78%
49%
22%
4%
0%-30% of AMI
31%-50% of AMI
51%-80% of AMI
81%-100% of AMI
100%+ of AMI
0%-30% of Income Used for Housing 30%-50% of Income Used for Housing
50%+ of Income Used for Housing
0.4%
0.6%
4.1%
1.4%
Kitchen
Plumbing
Owner Renter
2.1%
4.3%
0.3%
0.3%
1.0 to 1.5 Occupants per Room
More than 1.5 Occupants per Room
Owner Renter Series3
1.5+ Occupants
per Room
1-1.5 Occupants
per Room
Town
Town
Town
Housing Needs Assessment B
APPENDIX
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-1
B.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
communities, 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.
Summary of Key Facts
Population – Generally, the population of the Bay Area continues to grow because of new births (natural
growth) 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 youth population of the Town, under the age of 18, was 6,767 and the senior
population, 65 and older, was 6,393. These age groups represent 22. percent and 20.8 percent,
respectively, of the Town’s 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 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.
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,
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.
Appendix B. Housing Needs Assessment
B-2 Appendix B August 2022
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 would create opportunities for all of the Los Gatos
community to live in Town.
Ownership – The largest proportion of homes had a value greater than $2 million 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, 60 percent of homes in the Town of Los Gatos were single-family detached, 13
percent were single-family attached, 9 percent were small multi-family (two to four units), and 18 percent
were medium or large multi-family (five or more units). Between 2010 and 2020, the number of single-
family units increased more than multi-family units. Los Gatos has a higher portion of detached single-
family homes than other jurisdictions in the region.
Housing Demand – The Town is populated with a higher share of high-income earners (65% greater than
100% of AMI) than the rest of the county, therefore, housing is built for these higher income and amenity
levels. Without goals, policies and programs that specifically address the need to build “affordable
housing” targeting incomes less than 100% of AMI (not above greater than 100% AMI), it is highly unlikely
developers will voluntarily build housing for low and very-low-income levels.
Cost Burden – The U.S. Department of Housing and Urban Development (HUD) 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, 20 percent of households spend 30
percent to 50 percent of their income on housing, while 16 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 (UC), 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 live
in neighborhoods where low-income households are likely excluded due to prohibitive housing costs.
Neighborhood – All residents in 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 and 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.
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.
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-3
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
specific housing circumstances. In Los Gatos, 9 percent of residents have a disability (physical,
developmental, etc.), and may require accessible housing. Additionally, 6 percent of Los Gatos
households are larger households with five or more people and 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.
B.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 Los Gatos makes up 1.6 percent of Santa Clara County 5. In 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 B-1 shows population growth trends for the Town of Los Gatos, Santa Clara County, and the Bay Area as a
whole.
Table B-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 County 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 2000’s the population increased by 2.9 percent. In the most recent decade, the
population increased by 6.9 percent. Figure B-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 B-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.
Appendix B. Housing Needs Assessment
B-4 Appendix B August 2022
Figure B-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 populations 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 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 to 34 and age 35 to 44 decreased between 2000 and
2019, while all age cohorts 55 and above increased during the same time period. Figure B-2 shows population by
age for the years 2000, 2010, and 2019 for the Town of Los Gatos.
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-5
Figure B-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 layer of understanding, as families and
seniors of color are even more likely to experience challenges finding affordable housing. People of color 6 make
up 13.4 percent of seniors and 23.7 percent of youth under 18. Figure B-3 shows population age by race for the
Town of Los Gatos.
6 Here, all non-white racial groups are counted.
Appendix B. Housing Needs Assessment
B-6 Appendix B August 2022
Figure B-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 B-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.
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-7
Figure B-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 houses employed residents who either work in the community where they live or work elsewhere in the
region. Conversely, a town may have job sites that employ residents from the same town, but more often employ
workers that commute from outside of it. Smaller towns typically will have more employed residents than jobs and
export workers, while larger towns tend to have a surplus of jobs and import workers. To some extent the
regional transportation system (bus system, for example) 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 with a surplus of workers “exports” workers to other parts of the
region, while a town 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.
Appendix B. Housing Needs Assessment
B-8 Appendix B August 2022
Figure B-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 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 B-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.
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-9
Figure B-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 B-7 shows jobs to worker
ratios for the Town Los Gatos.
Appendix B. Housing Needs Assessment
B-10 Appendix B August 2022
Figure B-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. the
Town is a “net importer of workers” is at the low-wage group, while at the high-wage group the Town is “exporting
workers.” 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. Therefore, 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 B-8 shows the Town of Los Gatos jobs
per employed resident ratio.
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-11
Figure B-8 Jobs-Household Ratio
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 B-9 shows resident employment by industry.
Appendix B. Housing Needs Assessment
B-12 Appendix B August 2022
Figure B-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 B-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.
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-13
Figure B-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 B-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
Appendix B. Housing Needs Assessment
B-14 Appendix B August 2022
Figure B-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 B-12 shows household income by tenure.
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-15
Figure B-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 B-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.
Appendix B. Housing Needs Assessment
B-16 Appendix B August 2022
Figure B-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.
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-17
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 B-14 shows housing
tenure for Los Gatos, Santa Clara County, and the Bay Area as a whole.
Figure B-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 and 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 Los Gatos, 84 percent of Black households owned their homes, while homeownership rates were 72 percent
for Asian households, 39 percent for Latinx households, and 65 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 B-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.
Appendix B. Housing Needs Assessment
B-18 Appendix B August 2022
Figure B-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 B-16 shows housing tenure by age.
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-19
Figure B-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 communities, 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 B-17 shows housing tenure by housing type.
Appendix B. Housing Needs Assessment
B-20 Appendix B August 2022
Figure B-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.
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-21
Displacement
Because of increasing housing prices, displacement is a major concern in the Bay Area. 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 UC, 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 B-18 shows household displacement risk and tenure.
Figure B-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.
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
Appendix B. Housing Needs Assessment
B-22 Appendix B August 2022
B.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” or
“Small Multi-Unit 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
seeking 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 60 percent Single-Family Home: Detached,
13 percent Single-Family Home: Attached, 9 percent Multifamily Housing: Two to Four Units, 18 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 B-19 shows
housing type trends in Los Gatos for 2010 and 2020.
Figure B-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 current housing stock was built, which is 342
units (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25034). Figure B-20
shows housing units by the year built.
59.6%
13.0%
9.0%
17.9%
0.5%
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-23
Figure B-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 B-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.
Appendix B. Housing Needs Assessment
B-24 Appendix B August 2022
Figure B-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, 502 housing units were issued building permits in the Town of Los Gatos. Of those,
approximately percent were for above moderate-income housing, approximately 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 B-2 shows residential building permits issued by the Town of Los Gatos by
income group.
Table B-2 Los Gatos, Residential Building Permits by Income Group, 2015 to 2020
Income Group Number Percent
Very Low-Income Permits 49 revise all below
Low-Income Permits 3
Moderate-Income Permits 119
Above Moderate-Income Permits 331
Total 502 100.0%
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 a need to produce new affordable housing units, ensuring that the existing affordable housing stock
remains affordable is also important. Additionally, it is typically faster and less expensive to preserve currently
affordable units that are at risk of converting to market-rate than it is to build new affordable housing.
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-25
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 B-3 summarizes assisted
units at risk in the Town of Los Gatos.
Table B-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 B-22
shows substandard housing issues in 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.
Appendix B. Housing Needs Assessment
B-26 Appendix B August 2022
Figure B-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.
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-27
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 B-23 shows home values of
owner-occupied housing units in Los Gatos.
Figure B-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 B-24 shows Zillow home value index for Los Gatos.
Appendix B. Housing Needs Assessment
B-28 Appendix B August 2022
Figure B-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 B-25 shows contract rents for renter-occupied units
in Los Gatos, Santa Clara County, and the Bay Area as a whole.
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-29
Figure B-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 B-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 B-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.
Appendix B. Housing Needs Assessment
B-30 Appendix B August 2022
Figure B-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 rental 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.
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-31
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, 20 percent of renters spend 30 percent
to 50 percent of their income on housing compared to 16 percent of those that own. Additionally, 22 percent of
renters are severely cost-burdened (i.e., spend 50 percent or more of their income on housing), while 12 percent
of owners are severely cost-burdened. Figure B-27 shows cost burden by tenure.
Figure B-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 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 B-28 shows cost burden by income
level.
Appendix B. Housing Needs Assessment
B-32 Appendix B August 2022
Figure B-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), 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 19 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 percent spending more than 50 percent
of their income on housing. Figure B-29 shows cost burden by race.
19 As before, this category as it is used here includes all non-White persons.
3.7%
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-33
Figure B-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 can 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 B-30 shows cost burden by household size.
Appendix B. Housing Needs Assessment
B-34 Appendix B August 2022
Figure B-30 Cost Burden by Household Size, 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-09.
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 cost-burdened seniors are no longer able to make house payments 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 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 B-31 shows cost-burdened senior households by income level.
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-35
Figure B-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 aged 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, 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), 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 per room), compared to 0.3 percent
of households that own. Figure B-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).
Appendix B. Housing Needs Assessment
B-36 Appendix B August 2022
Figure B-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 B-33 shows overcrowding by
income level and severity.
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-37
Figure B-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. 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.
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 B-34 shows overcrowding by race.
Appendix B. Housing Needs Assessment
B-38 Appendix B August 2022
Figure B-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 more per
room (excluding bathrooms and kitchens), and units with more than 1.5 persons per room are considered severely overcrowded. 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.
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-39
B.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 B-35
shows household size by tenure.
Figure B-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.
Appendix B. Housing Needs Assessment
B-40 Appendix B August 2022
Figure B-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.
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-41
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 percent of all households. Figure B-37
provides information on household type in Los Gatos.
Figure B-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 challenges, 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 percent) fell in the Below Poverty Level category,
while 26 female-headed households without children (5 percent) fell in the Below Poverty Level category. Figure
B-38 shows female-headed households by poverty status.
Appendix B. Housing Needs Assessment
B-42 Appendix B August 2022
Figure B-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.
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-43
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 B-39 shows senior households by income and
tenure.
Figure B-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.
Appendix B. Housing Needs Assessment
B-44 Appendix B August 2022
Overall, 9 percent of people in Los Gatos have a disability of some kind.21 Figure B-40 shows the rates at which
different disabilities are present among residents of Los Gatos.
Figure B-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 making
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 a Housing Element 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 intellectual disability. 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 (60 percent). Table B-4 below shows the
number of persons in Los Gatos with developmental disabilities by age.
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.
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.
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-45
Table B-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 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.
The most common living arrangement for individuals with disabilities is in Los Gatos is the home of
parent/family/guardian. Table B-5 shows the Los Gatos population with developmental disabilities by residence.
Table B-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. Many residents have found themselves housing insecure and 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 percent are
unsheltered. Of homeless households with children, most are sheltered in an emergency shelter. Figure B-41
shows household type and shelter status in Santa Clara County.
Appendix B. Housing Needs Assessment
B-46 Appendix B August 2022
Figure B-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 Subpopulations
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 federal 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 44 percent of the homeless population, while making up 45 percent
of the overall population. Figure B-42 shows the racial group share of the homeless population.
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-47
Figure B-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 experiencing
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 B-43 shows the Latinx share of the
homeless population in Santa Clara County.
Appendix B. Housing Needs Assessment
B-48 Appendix B August 2022
Figure B-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 B-44 shows selected characteristics of the homeless population in Santa Clara County.
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-49
Figure B-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 B-6 summarizes students in public schools experiencing
homelessness.
Appendix B. Housing Needs Assessment
B-50 Appendix B August 2022
Table B-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 persons 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 percent in the number of migrant worker
students since the 2016-17 school year. The change at the county level is a 50 percent decrease in the number
of migrant worker students since the 2016-17 school year. Table B-7 summarizes migrant worker student
population in the Town of Los Gatos, Santa Clara County, and the Bay Area as a whole.
Table B-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 B-45 shows farm operation and labor in Santa Clara
County.
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-51
Figure B-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 labor
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.
Appendix B. Housing Needs Assessment
B-52 Appendix B August 2022
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
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 B-46 shows population
with limited English proficiency in the Town of Los Gatos, Santa Clara County, and the Bay Area as a whole.
Figure B-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 housing situations. Transitional housing includes
both single site and "scattered site" programs. Table B-8 provides a summary of homeless facilities, emergency
shelters and transitional housing near the Town of Los Gatos.
1.7%
Initial Draft 2023-2031 Housing Element
August 2022 Appendix B B-53
Table B-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
Governmental and Non-Governmental Constraints C
APPENDIX
August 2022 Appendix C C-1
C.1 G overnmental Constraints
Potential governmental constraints that impact housing development in Los Gatos include land use and zoning
regulations, building code standards and code compliance, Town design and development standards,
governmental fees and exactions, processing and permitting time, and local housing programs.
This appendix provides a full discussion of both governmental and non-governmental constraints that affect
housing in Los Gatos. Governmental constraints are policies, requirements, or other actions imposed by various
levels of government on land and housing ownership and development. Federal and State agency regulations
that may constrain development are beyond the control of the Town and are therefore not addressed in this
document. Non-governmental constraints are other conditions that impact housing development such as market
factors, environmental setting, and construction costs.
Land Use
The Town of Los Gatos 2040 General Plan regulates residential development, identifying residential development
uses, and associated densities within the following land use designations.
Residential Designations
HR, Hillside Residential. The purpose of this designation very low density single-family residential and
accessory dwelling unit development on large lots or as part of a cluster development. This designation
allows for development that is compatible with the unique mountainous terrain and rural nature of the
hillside areas. Up to one dwelling unit per acre and maximum height of 25 feet.
LDR, Low Density Residential. The purpose of this designation is to provide for accessory dwelling units,
missing middle housing, and single-family residential purposes. It encourages single-family residential
development in either the standard development established by standard zoning or by innovative forms
obtained through a planned development. Densities range from 1 to 12 dwelling units per acre, a
maximum height of 30 feet and up to 50 percent lot coverage.
HDR, High Density Residential. The purpose of this designation is to provide for accessory dwelling units,
small multi-unit housing, multifamily residential, duplexes, and/or small lot single-family homes. Mixed-use
developments are not permitted in this designation. Densities range from 14 to 22 units per acre,
maximum height up to 35 feet and lot coverage up to 75 percent.
VDHR, Very High Density Residential. The purpose of this designation is to provide for accessory dwelling
units, and more dense multifamily residential development. Its objective is to provide quality housing in
proximity to transit and/or commercial and business areas. Mixed-use developments are not permitted in
this designation. Densities range from 30 to 40 units per acre, maximum height up to 45 feet and lot
coverage up to 75 percent.
Commercial Designations
MU, Mixed-Use. The purpose of this designation is to provide a mixture of commercial uses (including
retail, office, hotel/lodging) and residential, along with allowing stand-alone commercial uses (including
retail, office, hotel/lodging, service uses, recreational uses, and restaurants). Residential is only allowed
when developed in a mixed-use format with retail, office, or hotel/lodging components on the site. Projects
developed under this designation shall maintain primary orientation to arterial street frontages and proper
transitions and buffers to adjacent residential properties. Densities range from 30 to 40 units per acre,
maximum height up to 45 feet and a floor area ratio (FAR) up to 3.0.
NC, Neighborhood Commercial. The purpose of this designation is to provide for necessary day-to-day
commercial goods and services required by the residents of the adjacent neighborhoods. This designation
Initial Draft 2023-2031 Housing Element
C-2 Appendix C August 2022
encourages concentrated and coordinated commercial development at easily accessible locations.
Residential uses, developed using a mixed-use format, are allowed in the designation. Densities range
from 10 to 20 units per acre, maximum height up to 35 feet and a FAR up to 1.0.
CC, Community Commercial. The purpose of this designation is to provide for commercial goods and
services to support residents, businesses, and visitors, and located to serve the entire community.
Residential uses, developed using a mixed-use format, are allowed in the designation. Densities range
from 20 to 30 units per acre, maximum height up to 45 feet and a FAR up to 3.0.
CDB, Central Business District. The purpose of this designation is to encourage a mixture of community-
orientated commercial goods and services within the Downtown CBD. This designation applies exclusively
to the Downtown CBD, with the goal to accommodate and retain local merchants and preserve the Town’s
character. New development in the CBD shall integrate with existing structures of architectural and
historical significance. Residential uses, developed using a mixed-use format, are allowed in the
designation. Densities range from 20 to 30 units per acre, maximum height up to 45 feet and a FAR up to
2.0.
Employment Center Designations
OP, Office Professional. The purpose of this designation is to provide for professional and general
business offices, incubator spaces, and innovation centers. This designation applies to various locations
throughout the Town, often in proximity to neighborhood- or community-oriented commercial facilities, or
as a buffer between commercial and residential uses. The intent of this designation is to satisfy the
community’s need for general business and professional services, and local employment. Residential
uses, developed using a mixed-use format, are allowed in the designation. Densities range from 10 to 20
units per acre, maximum height up to 35 feet and a FAR up to 1.0.
Specific Plan Designations
NF-SP, North Forty Specific Plan. The purpose of this designation is to provide land for the North 40
Specific Plan, which includes the designation of mixed-use development (residential and commercial, open
space amenities, and space for a hotel).
Town Code
The Town of Los Gatos Municipal Code provides zoning regulations that are more specific than the General Plan
Land Use designations. This section describes residential development standards, including accessory dwelling
units, overlay zones, and density bonuses. This section also analyzes constraints on housing for persons with
disabilities.
Residential Development Standards
There are seven residential and four commercial zoning districts in Los Gatos that allow residential uses. Table
C-1 provides the regulations for each zone.
Resource Conservation (RC)
Hillside Residential (HR)
Single-Family Residential (R-1)
Single-Family Residential Downtown (R-1 D)
Duplex Residential (RD)
Multifamily Residential (RM)
Neighborhood Commercial (C-1)
Appendix C: Governmental and Non-Governmental Constraints
August 2022 Appendix C C-3
Central Business District (C-2)
Highway Commercial (CH)
Commercial-Industrial Zone (LM)
As shown in Table C-1, development standards for each residential district could impede a project’s ability to
develop housing at a density of at least 35 dwelling units per acre on a site. The 30-foot height limit for the
majority of residential designations allows for up to three building stories and the maximum density of 20 dwelling
units per acre in the RM zone limits development.
Table C-1 also provides the parking requirements for residential development in Los Gatos, by zoning district.
Parking is often a significant component of the cost of residential development and can be viewed as a constraint
to the provision of housing. The Town has provided some flexibility in its parking requirements, particularly for
Planned Developments and for some developments providing affordable units for elderly and disabled persons,
generally easing the constraint of parking requirements on the development of higher density and affordable units.
The Town is committed to updating the zoning districts in accordance with the 2040 General Plan designations
within three to six months of adoption. In tandem, the Town will initiate a program to revise the zoning code to
ensure adequate sites are available to accommodate the identified sites in the Sites Inventory:
Clarifying the text of the non-residential zones that the housing sites contained in the inventory sites table
that are in these zones must include housing as specified in the sites table.
Rezoning the Caltrans ROW (Site F3) to allow for residential development.
Allow for housing developments that are 100 percent affordable are allowed by-right in Mixed-Use General
Plan designation.
Initial Draft 2023-2032 Housing Element
August 2022 Initial Draft 2023-2031 Housing Element C-4
Table C-1 Residential and Commercial Development Standards by Zoning District
Zoning
District Density Minimum Lot
Area
Maximum
Height
(Feet)
Front
Yard
Setback
(Feet)
Side
Yard
Setback
(Feet)
Rear
Yard
Setback
(Feet)
Parking
Per Unit
(No. of
Spaces)
Other
RC 1 unit per lot 20 acres 25 30 20 25 2
HR HR-1: 1-5 acres per unit
HR-2.5: 2.5-10 acres per unit
HR-5: 5-40 acres per unit
HR-20: 20-160 acres per unit
40,000 sq. ft. 25 30 20 25 2 Density ranges are dependent
on hillside slope calculations.
R-1 R-1:8 (~5.4 units per acre)8,000 sq. ft. 30 25 8 20 2
R-1:10 (~4.4 units per acre)10,000 sq. ft. 30 25 10 20 2
R-1:12 (~3.6 units per acre)12,000 sq. ft. 30 25 10 20 2
R-1:15 (~2.9 units per acre)15,000 sq. ft. 30 25 12 25 2
R-1:20 (~2.2 units per acre)20,000 sq. ft. 30 30 15 25 2
R-1:30 (~1.5 units per acre)30,000 sq. ft. 30 30 16 25 2
R-1D 5,000 sq. ft. for
single-family
8,000 sq. ft. for
duplex
30 15 5 20
2 for single-
family and
two-family
dwellings
Architecture & Site is required
for all new principal buildings
R-D 8,000 sq. ft. 30 25 8 20 2
R-M
8,000 sq. ft. 30 25 8-10 20
Resident: 1.5
per unita
Visitor: 1 per
unitb
Maximum height is 30 feet,
except when the building has
below grade parking the
maximum is 35 feet.
C-1 10-30 units per acre N/A 35 15 0 0c Dependent
on unit size Residential allowed with CUP
C-2 20-30 units per acre N/A 35 15 0 0 Residential allowed with CUP
CH 30-40 units per acre N/A 35 15 0 0 Residential allowed with CUP
Notes: a Single-family, residential condominiums, and two-family dwellings must provide two parking spaces for each living unit and one additional visitor space for each residential unit
is required. See discussion below for information regarding required visitor spaces.
b The Town requires 1.5 parking spaces per unit for multiple-unit dwellings in all zones and two-family dwellings in the R-1D zone. One visitor parking space for each residential unit other
than a detached single-family or two-family dwelling shall be required, unless the Planning Commission makes a finding that more or less visitor parking is necessary due to the size or
type of housing unit(s).c Setbacks vary depending on adjacent uses and streets for commercial designations
Appendix C: Governmental and Non-Governmental Constraints
August 2022 Draft 2023-2031 Housing Element C-5
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Initial Draft 2023-2032 Housing Element
August 2022 Initial Draft 2023-2031 Housing Element C-6
Overlay Zones
Four overlay zones in the Town Code, the Planned Development (PD) zone, the Landmark and Historic
Preservation (LHP) zone, the Affordable Housing Overlay Zone (AHOZ), and the Public School Zone (PS) that
apply to housing development in Los Gatos.
Planned Development (PD)
The PD overlay zone was updated in 2018 and is intended to preserve, enhance, and/or promote development
that highlights the Town’s characteristics. This includes natural and historic resources, production of affordable
housing, maximization of open space, and projects that provide a public benefit to the Town’s citizens. As an
incentive to housing development, the PD overlay provides alternative standards for housing developments with a
minimum of 40 percent of the units affordable to households of very low, low, or moderate income.
Landmark and Historic Preservation (LHP)
The LHP overlay zone designation is applied to individual sites, structures, or areas deemed as architecturally or
historically significant. There are five designated LHP overlay zones within the Town, including the Almond
Grove, Downtown Commercial, Fairview Plaza, and University-Edelen districts. Existing and proposed
structure(s) within these LHP overlay zones are subject to a special design standard and review process
regarding their appearance, use, and maintenance before the Historic Preservation Committee.
Affordable Housing Overlay Zone (AHOZ)
The AHOZ is intended to increase the supply and variety of housing types to promote tenure and affordability.
The AHOZ promotes densities, development standards and incentives that will encourage the production of
housing affordable to all income levels of the Town's RHNA allocation. The properties can be developed
consistent with the AHOZ development standards, densities and incentives or under the existing zoning
requirements, but not both. The 2023-2031 Housing Element lists the one property, the Southbay Development
located on Knowles Drive, east of Winchester Boulevard as a key housing opportunity site for a mixed income
affordable housing project. The designation of this site will assist the Town in meeting its fair share of the regions
housing needs required by the State.
The AHOZ permits development at a density of 20 units per acre by-right, with an Architecture and Site approval,
for projects in which at least half of the units are affordable to lower or moderate-income households. The AHOZ
provides a 30-foot building height with an automatic allowance for 35 feet for integrated (first floor) garage or
podium parking. Additional height can be granted through the Architecture and Site Plan review process. The 40
percent lot coverage and parking reduction is consistent with the State Density Bonus maximum parking
requirements. Further parking reductions are allowed for properties within a quarter mile of the planned Vasona
Light Rail Station, for senior-only housing and housing for persons with disabilities. All other property
development standards are consistent with the Town's R-M Standards.
The AHOZ also allows up to four automatic concessions. The concessions include reductions in:
Parking: one space for studio and one-bedroom units, two spaces for three to four bedroom units, 2.5
spaces for four or more bedroom units, one space for units reserved for seniors or persons with
disabilities, reduction to one space per unit for developments within one-quarter mile to the proposed
Vasona Light Rail Station.
Setbacks: Any two property setbacks may be reduced by up to 50 percent.
Increase in lot coverage: The lot coverage may be increased up to 50 percent from 40 percent.
Processing fees: The Town shall waive or defer planning, engineering, and building processing fees,
except those that are paid directly to Town consultants or for technical studies.
The developer can select one of the following types of fees to be waived as one of the four available
concessions:
a.Planning and engineering application fees (but not Town consultant fees).
b.Building plan check and inspection fees.
c.Construction mitigation fee.
Appendix C. Governmental and Non-Governmental Constraints
August 2022 Appendix C C-7
Priority processing: The Town gives projects the highest processing priority for planning entitlements,
building plan check and building inspections.
The Valley Transportation Authority has deferred the development of the Vasona Light Rail Station indefinitely.
Given this recent development, the Town will initiate a Code amendment to reduce parking within a quarter mile
of transit stops as a further development incentive in the AHOZ.
Public School Zone (PS)
The PS Overlay Zone is intended to all school buildings to be used for community and educational purposes,
such as museums, community centers, and nurseries, without extensive exterior modifications. Any land owned
by a public school district may be designated as a PS overlay zone.
Multifamily Housing
Multifamily housing is permitted in a residential, including the R-M zone and is permitted in a mixed-use
development with a Conditional Use Permit (CUP) in the following commercial zoning districts, C-1, C-2, and CH
zones. One of the intents of these districts is to direct and facilitate housing of various density ranges. A
permitting process that is more onerous or uncertain for multifamily units than for single-family presents a concern
and could be considered a constraint on multifamily housing. In the R-M zone, the Town requires apartments
include one and a half parking spaces per unit, regardless of the number of bedrooms in the unit, plus one visitor
parking space for each apartment unit, unless the Planning Commission makes a finding that more or less visitor
parking is necessary due to the size or type of housing unit(s).
A CUP can increase risk and costs associate with the planning entitlement process act as a deterrent to housing
developers. Long permit processing times or permit processes that have a high degree of uncertainty (i.e.,
discretionary reviews or processes with multiple public meetings) increase the cost of housing for developers,
either by increasing their carrying costs as they wait for permits, or by increasing the chance that a project will be
rejected after a long wait. In either case, a developer working in a jurisdiction with an onerous permitting process
will demand higher profits to account for the increased risk, thereby increasing the overall development costs. In
order to remove this regulatory constraint, the Housing Element includes an Implementation Program to remove
the requirement for a CUP for residential development in zoning districts that current allow multifamily uses with a
CUP.
In Los Gatos, the predominant housing type in the Town is single family development which are allowed by right
in the R-M zone. When single family residences are allowed in higher density residential zoning districts, the
likelihood and ability of a developer constructing higher density residential units is diminished. Housing
developers face higher risk, including neighborhood opposition, when single-family homes are present in
multifamily zoning districts.
Manufactured Housing
Manufactured, otherwise known as prefabricated or factory-built, housing is constructed off-site and then
transported to the property. It is allowed in all residential districts in Los Gatos subject to its compliance with Town
regulations.
Transitional and Supportive Housing
According to California Health and Safety Code Section 50675.2, transitional housing is rental housing with, at
most, a six-month limit on the length of stay for tenants. Transitional housing would be available to homeless
individuals and/or families in need of temporary housing until they can secure more permanent housing. The
Town of Los Gatos Zoning Code uses the State’s definitions for transitional housing. Transitional housing is
permitted as a residential use consistent with State law.
According to California Health and Safety Code Section 50675.14, supportive housing is housing that is linked to
on- or off-site services and is occupied by low-income persons with mental disabilities, chronic health issues or
Initial Draft 2023-2031 Housing Element
C-8 Appendix C August 2022
substance abuse issues or persons with disabilities that were developed before age 18. Supportive housing has
no limit on the length of stay for tenants. Supportive housing in Los Gatos consists of small family home
residential care facilities, which are permitted in all residential zoning districts except Mobile Home Residential
(RMH). In Los Gatos, licensed residential care facilities for six or less persons are allowed by right in all
residential districts consistent with California Health and Safety Code Section 1267.8.
Accessory Dwelling Unit (ADU)
Accessory dwelling units are complete independent housing units that can be either detached or attached from an
existing single-family residence. Based on their relatively small size, and because they do not require paying for
land or major new infrastructure, ADUs are considered affordable by design. ADUs can provide affordable
housing options for family members, seniors, students, in-home health care providers, and other small household
types. ADUs can also be useful to generate additional rental income for the homeowner, making homeownership
more financially feasible.
In 2020 the Town adopted Ordinance 2307, amending the Town Code to further address barriers to the
development of ADUs and to conform with a series of State bills aimed at encouraging single-family homeowners
to add ADUs to their property. Permitted zones allowing the ADUs include the R-1, R-D, R-M, R-1D, RMH, HR
and RC zones. All detached units must comply with lot coverage maximum of their designated zone. ADUs are
not to exceed 1,200 square feet. One parking space is required per unit or bedroom, unless the ADU is located
within half a mile of a transit stop.
A new ADU requires the submittal of an Accessory Dwelling Unit Application to the Community Development
Department. Over the past three years, the Town has averaged 50 ADUs per year. In order to further incentivize
production, a policy to eliminate Building fees if the unit is deed restricted is included in the Housing Element.
Building and Code Compliance
In addition to the General Plan land use designations and Town Code, Los Gatos has recently adopted updated
building codes that enforce Town regulations with the purpose of protecting the lives, health, property, and public
welfare of Los Gatos residents. Each Code is an enforcement of State and local standards and is not considered
a constraint on housing production in Los Gatos. The following 2019 California Building Standards Codes have
been adopted, as amended by the Town:
Part 1 California Administrative Code.
Part 2 California Building Code, Volumes 1 and 2, including Appendices B, I, and J.
Part 2.5 California Residential Code including Appendices H, K, O, Q, S, V, and X.
Part 3 California Electrical Code.
Part 4 California Mechanical Code.
Part 5 California Plumbing Code including Appendices A, B, D, G, I, K, and L.
Part 6 California Energy Code.
Part 8 California Historical Building Code including Appendices A.
Part 9 California Fire Code.
Part 10 California Existing Building Code including 20118 International Existing Building Code Chapters 9
and 14, as well as Appendices A2, A3, A4, and A5.
Part 11 California Green Building Standards Code (CALGreen) Chapters 1 through8 only.
Part 12 California Referenced Standards Code.
2018 International Property Maintenance Code.
The Town also has a Code Compliance Officer that enforces the Town’s zoning regulations and building and
safety codes. The program reviews and responds to code complaints. The Town has adopted the 2018
International Code for Property Maintenance and the 2019 California Existing Building Code, including 2018
Appendix C. Governmental and Non-Governmental Constraints
August 2022 Appendix C C-9
International Existing Building Code Chapters 9, 14, and Appendices A2, A3, A4, and A5. Affordable units
developed under the Below Market Price (BMP) Program must undergo an annual compliance audit.
On- and Off-Site Improvements
The Town requires standard on- and off-site improvements for development, which are intended to meet health
and safety requirements of the community. These standard improvements are not considered a constraint on
development because the Town does not include improvements beyond what is required to meet health and
safety requirements. Subdivision design standards for the Town, described in the Town Code starting at Section
29.10.06701, include the following on- and off-site improvements:
Parking bays may be required on narrow streets where parking may be prohibited on either or both sides
of the street.
Roadways must be paved with asphalt concrete.
Sidewalks are required on all streets in a subdivision unless the lots will be 20,000 feet in size or more.
Curbs and gutters must be constructed on all streets.
Culverts, storm drains, and drainage structures will be required in a subdivision.
Sanitary sewers with house service laterals are required to serve each lot, with some exceptions in hillside
areas.
Underground utilities with connections are required for each lot.
Street lighting shall be installed in accordance with Town standards
Design Guidelines and Objective Design Standards
The Town has adopted Residential Design Guidelines for single-family and two-family dwelling units, which
incorporate the Town’s previous Residential Pre-1941 Design Guidelines for historically significant structures,
sites, and historic districts in Los Gatos. The Town has also adopted Hillside Development Standards and
Guidelines. These sets of development standards and design guidelines are used in the development and design
review process for Los Gatos and complement the Town’s zoning regulations. The Hillside Development
Standards and Guidelines were adopted in January 2004 and modified in 2020. The Residential Design
Guidelines were updated and adopted in 2008.
The Town of Los Gatos is developing Objective Design Standards for the review of multifamily housing and
mixed-use development applications. This effort is in response to State legislation requiring jurisdictions to adopt
objective standards and to implement them in a streamlined review of qualifying housing projects. Objective
standards are defined under State law as “standards that involve no personal or subjective judgement by a public
official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and
knowable by both the development applicant or proponent and the public official prior to submittal” (California
Government Code, Section 65913.4).
The Draft Objective Design Standards are slated for discussion by the Planning Commission on August 24, 2022,
and are anticipated to be adopted by the Town Council in late Fall 2022.
Residential Design Guidelines
Residential Design Guidelines in Los Gatos address the following design characteristics for single-family and two-
family dwelling units in all zoning districts except for the RC and HR zones:
Historic Designations. When necessitated by the designating ordinance, Historic Preservation
Committee review of a development is required for developments that affect a historically designated
property or are located in a historic district.
Initial Draft 2023-2031 Housing Element
C-10 Appendix C August 2022
Site Development. This section focuses on the design and layout of the housing development in relation
to its site. Site planning issues addressed include site design, solar orientation, shadow effect, and
easements and dedications. This section provides information on landscaping requirements, sensitivity to
adjacent neighbors, and conformity to neighborhood street and sidewalk edges.
Building Design. This section focuses on the design and layout of development in relation to the
surrounding neighborhood. Issues addressed include harmony and compatibility with the streetscape and
surrounding structures; the scale and mass of the development including second-story additions,
significant remodels, demolitions and replacement structures, exterior material and colors, building
components, energy conservation, and privacy. Neighborhood compatibility for replacement structures
shall be based on the following criteria:
Existing architectural style of surrounding neighborhood.
Size of the lot on which the development is located.
Size of homes adjacent to the development and along the street on which the development is
located.
Transitioning neighborhood.
Impacts on the site and surrounding property.
Landscaping/Open Space. This section addresses tree preservation in accordance with Division 2 of the
Town Code for adherence to the Town’s Tree Protection Ordinance.
The Los Gatos Residential Design Guidelines promote safe, compatible, and well-designed housing in Los Gatos.
These standards are not a constraint on single-family and two-family housing development.
Hillside Development Standards and Guidelines
The Hillside Development Standards and Guidelines are consistent with the Town’s policies and complement and
coordinate with the Town’s Hillside Specific Plan. These standards and guidelines apply to all areas zoned HR,
RC, and some lots zoned R-1 as noted on the Town’s Hillside Area Map. The goal of these standards and
guidelines is to encourage high-quality design that incorporates sustainable development and open space
preservation.
The following summarizes the Hillside Development Standards and Guidelines for Los Gatos:
Constraints Analysis and Site Selection. Developers must conduct a constraints analysis as deemed
necessary by the Town, consult with neighbors, meet with Town staff to discuss the development site, and
conduct a view analysis for the development site. The constraints analysis, as required by the Town,
requires that developers of hillside property identify the Least Restrictive Development Area (LRDA), or
areas deemed most feasible for development on hillsides. For the view analysis, developers must analyze
aesthetic impacts; preserve hillside and ridgeline views; and preserve natural features, riparian corridors,
and wildlife.
Site Planning. This section describes site planning standards and guidelines that minimize physical and
aesthetic impacts to the site topography. Standards and guidelines discuss grading, drainage, driveways
and parking, and safety regarding geologic and fire hazards.
Development Intensity. This section outlines the maximum allowable floor area of development based
on lot size.
Architectural Design. The following architectural design characteristics are addressed in this section:
Neighbor-friendliness.
Appendix C. Governmental and Non-Governmental Constraints
August 2022 Appendix C C-11
Sustainability.
Fire safety.
Building height.
Bulk and mass.
Roofs.
Architectural features and detailing.
Materials and colors.
Site Elements. The specific elements of a hillside development site are addressed:
Fences and walls.
Driveway entries.
Retaining walls.
Outdoor lighting.
Accessory buildings, swimming pools, and sport courts.
Impervious surfaces.
Landscape Design. Because hillside sites are more prone to erosion, landslides, mudslides, and fire and
water hazards than flatter sites in Los Gatos, the following concepts are addressed in the landscaping
standards and guidelines for hillside development:
Fire safety.
Garden and turf locations and plant selection.
Irrigation.
Impervious surfaces.
Plant materials.
Tree preservation.
Planned Development Projects. This section describes standards and guidelines that relate specifically
to hillside Planned Developments (PDs) in Los Gatos. Additional restrictions are placed on the LRDA for
PDs. This section includes standards and guidelines focusing on site preparation, drainage, lot
configuration and building locations, street layout and driveways, and trail design.
Draft Objective Design Standards
The purpose of the Objective Design Standards is to ensure that new qualifying multifamily and mixed-use
projects in Los Gatos provide high-quality architecture, integrate with surrounding development, and include well-
designed amenities and open spaces. The Objective Design Standards will:
Comply with recent State housing legislation.
Implement streamlined and ministerial review processes for qualifying projects.
Ensure that qualifying projects align with the Town’s expectations and vision to maintain and support the
character of the Town.
Provide a set of clear criteria to guide development.
Establish an objective framework by which a qualifying project will be evaluated.
The Draft Objective Design Standards are organized into two primary sections: Site Standards and Building
Design. The Site Standards section includes objective standards for site layout and building placement, vehicular
Initial Draft 2023-2031 Housing Element
C-12 Appendix C August 2022
access and parking, and outdoor spaces and amenities. The Building Design section includes objective
standards for building form and massing, façade articulation, materials, and roof design.
The Draft Objective Design Standards are intended to promote predictable, safe, and well-designed multifamily
housing in Los Gatos. The standards are still under development and in draft form and are not a constraint on
multifamily housing development.
Governmental Fees and Exactions
Government policy at both the State and jurisdictional levels play a major role in determining the costs of building
new housing. Regulations and permitting processes that result in lengthy or uncertain development carry higher
risk and increased financing. Additionally, frequent delays in the entitlement and approval process directly
increase costs, such as additional architectural work, inspections, and community meetings.
Streamlining permitting processes, applying permit application processes consistently, increasing
interdepartmental cooperation, having adequately funded and staffed planning departments, and increasing by-
right housing are all actions jurisdictions can take to reduce the constraints represented by fees and permit
processing times.
Governmental fees can be a significant portion of the cost of housing development and can therefore be
considered a constraint to housing development. Table C-2 below provides all of the planning and development
fees that may apply to residential development projects in Los Gatos. Fees are due at the time an application is
accepted by the Town, except for projects in the Affordable Housing Overlay Zone, which can waive or defer their
fees as a development incentive.
Development fees are a standard component of new construction. Although these fees can add to the cost of
residential development, they are necessary for new development to pay its fair share of municipal services and
infrastructure for new development. Without adequate development fees, the Town would be unable to serve
future growth with adequate municipal services. According to the Town of Los Gatos’ Community Development
Department Planning Division, developing a new single-family home (non-hillside) in Los Gatos typically costs
about $11,863.28 in planning fee plus an additional deposit of $2,750 for review by the Town’s consulting
architect and a deposit of $2,200 for a review by the Town’s consulting arborist . The fee for a new two-family unit
is $15,789.16. Multifamily units, three or more units typically cost $16,281.92in planning fees and the same
consulting architect and arborist fees are applicable. These fees include Planning Commission or Design Review
Committee approval, fees associated with a Planned Development that does not require a General Plan or
Specific Plan amendment, and fees related to finalizing the map and Certificate of Compliance.
Table C-2 2019 Residential Planning and Development Fees
Application
Fee
4%
Permit
Tracking
Fee
10%
General
Plan
Update
10%
Advance
Planning
Special
Project
Engineering
Dev Review
Services
Fee Total Fee
1 ZONING APPROVALS
A Architecture and Site Applications
1 Development Review Committee (DRC) Approval
a.New single-family detached
(HR & RC zone)$9,508.00 $380.32 N/A $950.80 $4,396.00 $15,235.12
b.New single-family detached
(HR & RC zones) per unit, as
part of a Planned
Development
$6,603.00 $264.12 N/A $660.30 $4,393.00 $11,920.42
Appendix C. Governmental and Non-Governmental Constraints
August 2022 Appendix C C-13
Application
Fee
4%
Permit
Tracking
Fee
10%
General
Plan
Update
10%
Advance
Planning
Special
Project
Engineering
Dev Review
Services
Fee Total Fee
c.New single-family or two-
family units $6,552.00 $262.08 N/A $655.20 $4,394.00 $11,863.28
d. New single-family or two-
family (any other zone) per
unit, as part of a Planned
Development
$4,682.00 $187.28 N/A $468.20 $4,398.00 $9,735.48
e.Minor projects (a
development proposal that
does not significantly change
the size, mass, appearance or
neighborhood impact of a
structure, property or parking
lot)
$2,375.00 $95.00 N/A $237.50 $3,374.00 $6,081.50
2 Planning Commission Approval
a.Supplemental fee for DRC
applications as determined in
Section 1.A.(1) or minor
residential development
applications that require
Planning Commission approval
$3,355.00 $134.20 N/A $335.50 $1,225.00 $5,049.70
b.New two-family unit $9,994.00 $399.76 N/A $999.40 $4,396.00 $15,789.16
c.New nonresidential $11,471.00 $458.84 N/A $1,147.10 $4,396.00 $17,472.94
d.New multifamily $10,428.00 $417.12 N/A $1,042.80 $4,394.00 $16,281.92
e.All other $5,815.00 $232.60 N/A $581.50 $4,396.00 $11,025.10
B Conditional Use Permits
1 Conditional Use Permit $6,726.00 $296.04 N/A $672.60 $1,431.00 $9,098.64
2
Conditional Use Permit (when
consolidated with another
application for new
development)
$1,118.00 $44.72 N/A $111.80 $820.00 $2,094.52
C Variance $4,947.00 $197.88 N/A $494.70 $1,431.00 $7,070.58
D Rezoning (other than Planned
Development)
1 Without General Plan or
Specific Plan Amendment
Actual Cost
($5,000 min.)
$200
(min.)
$500
(min.)
$500
(min.) N/A $6,200.00
2 With General Plan or Specific
Plan Amendment
Actual Cost
($7,000 min.)
$280
(min.)
$700
(min.)
$700
(min.) N/A $8,680.00
E Planned Development
1 Without General Plan or
Specific Plan Amendment Actual Cost YES YES YES N/A Varies
2
Without General Plan or
specific Plan Amendment (HR
or RC Underlying Zone)
Actual Cost YES YES YES N/A Varies
3 With General Plan or Specific
Plan Amendment Actual Cost YES YES YES N/A Varies
Initial Draft 2023-2031 Housing Element
C-14 Appendix C August 2022
Application
Fee
4%
Permit
Tracking
Fee
10%
General
Plan
Update
10%
Advance
Planning
Special
Project
Engineering
Dev Review
Services
Fee Total Fee
4
With General Plan or Specific
Plan Amendment (HR or RC
Underlying Zone)
Actual Cost YES YES YES N/A Varies
5 Town Council Modification to
a Planned Development
Actual Cost
($5,000 min.)
$200
(min.)
$500
(min.)
$500
(min.) N/A $6,200.00
6 DRC Modification to a Planned
Development Zone
Actual Cost
($3,000 min.)
$120
(min.)
$300
(min.)
$300
(min.) N/A $3,720.00
7 Publication costs for the Planned Development Ordinance shall be paid by the applicant.
F Minor Residential
Development $2,375.00 $95.00 N/A $237.50 N/A $2707.50
G Agricultural Preserve
Withdrawal $4,035.00 $161.40 N/A $403.50 N/A $4,599.90
H
Planning Division Certificates of Use and Occupancy
1 Change of Use $244.00 $9.76 N/A $24.40 N/A $278.16
2
Change of occupancy
(excluding change of
proprietor of a continuing
business enterprise)
$164.00 $6.56 N/A $16.40 N/A $186.96
L Accessory Dwelling Unit
1 New or existing unit $1,419.00 $56.76 N/A $141.90 N/A $1,617.66
M Mobile Home Park Conversion
Permit
Actual Cost
($5,000 deposit) Varies Varies Varies N/A Varies
N General Plan/Town Code
Amendments
Actual Cost
($5,000 deposit) N/A N/A N/A N/A Varies
2 SUBDIVISIONS
A Lot Line Adjustment (DRC
Approval) $2,254.00 $90.16 N/A $225.40 $3,782.00 $6,351.56
B 4 Lots or Less (DRC Approval) $9,081.00 $363.24 $908.10 $908.10 $4,194.00 $15,454.44
C
4 Lots or Less (as part of a
Planned Development) (DRC
Approval)
$3,750.00 $150.00 $375.00 $375.00 $4,398.00 $9,048.00
D 5 Lots or More $10,230.00 $409.20 $1,023.00 $1,023.00 $5,420.00 $18,105.20
E
5 Lots or More (as part of a
Planned Development) (DRC
Approval)
$4,397.00 $175.88 $439.70 $439.70 $5,420.00 $10,872.28
F Vesting Tentative Map Actual Cost
($500 deposit) N/A N/A N/A N/A Varies
G Lot Merger and Reversion to
Acreage (DRC Approval) $1,117.00 $44.68 $ N/A $111.70 $3,781.00 $5,054.38
H Condominium $7,884.00 $315.36 $788.40 $788.40 N/A $9,776.16
I Condominium (as part of a
Planned Development) $3,750.00 $150.00 $375.00 $375.00 N/A $4,650.00
J Certificate of Compliance (DRC
Approval) $3,257.00 $130.28 N/A $325.70 $2,350.00 $6,062.98
Appendix C. Governmental and Non-Governmental Constraints
August 2022 Appendix C C-15
Application
Fee
4%
Permit
Tracking
Fee
10%
General
Plan
Update
10%
Advance
Planning
Special
Project
Engineering
Dev Review
Services
Fee Total Fee
K
VTM applications that require
Town Council
approval and/or DRC
applications that
require Planning Commission
approval. This
fee supplements the above
established
fees.
$2,824.00 $112.96 N/A $282.40 N/A $3,219.36
3 MISCELLANEOUS
APPLICATION FEES
A Time Extensions to Approved
Applications
50% of Current
Fee Varies Varies Varies Varies Varies
B Modification of Approved
Application
75% of Current
Fee Varies N/A Varies Varies Varies
C Conceptual Development
Advisory Committee Review $2,966.00 $118.64 N/A $296.60 N/A $3,381.24
4 ENVIRONMENTAL
ASSESSMENT FEES
A Categorical Exemption No Fee N/A N/A N/A N/A No Fee
B Initial Study (Deposit)* $5,000.00 N/A N/A N/A Yes Varies
C
Draft Initial Study Review Fee
(or actual
cost if part of a Planned
Development,
General Plan and/or Town
Code
Amendment)
$2,950.00 N/A N/A N/A $2,045.00 $4,995.00
D Environmental Impact Report
(EIR) Consultant’s Fee N/A N/A N/A N/A Varies
E Draft EIR Review Fee $12,184 Plus
10% EIR Cost N/A N/A N/A Varies Varies
F Impact Monitoring Program
(AB3180)
Actual Cost on an
hourly basis plus
cost of
Consultant (if
necessary)
N/A N/A N/A N/A Varies
5 OTHER
A Pre-application Conference
Fee No fee Varies Varies Varies N/A Varies
B Fence Height Exceptions $292.00 N/A N/A N/A N/A $292.00
C Peer/Technical Review Actual Cost
($2,000 deposit) N/A N/A N/A N/A Varies
Initial Draft 2023-2031 Housing Element
C-16 Appendix C August 2022
Application
Fee
4%
Permit
Tracking
Fee
10%
General
Plan
Update
10%
Advance
Planning
Special
Project
Engineering
Dev Review
Services
Fee Total Fee
D
Fees for Additional Tech
Review and/or
DRC Review DRC beyond 3
meetings,
Planning Commission hearing
beyond 2
meetings, Town Council
hearing beyond 1
meeting
Actual Cost N/A N/A N/A N/A Varies
E
Request for Service Not
Covered by Any
Other Fee
Actual Cost N/A N/A N/A N/A Varies
F Building Permit Plan Check Fee 20% of Building
Fee N/A N/A N/A N/A Varies
G Surcharges
1 Permit Tracking Maintenance
and Update Surcharge
4% of
Development
Application Fee
N/A N/A N/A N/A Varies
2 General Plan Update
Surcharge
.5% of Bldg. Valuation for
new construction and
additions or 10% of zone
change & subdivision fee
N/A N/A N/A Varies
3 Advanced Planning Projects
10% of
Development
Application
Fee
N/A N/A N/A N/A Varies
4 Route 85 Study Plan Surcharge
**
10% of Development
Application Fee for property
in Route 85 Study Area Plan
N/A N/A N/A Varies
M Appeals
1
Fee to Appeal Planning
Commission Decision to Town
Council
$464 per
residential
$1,867 per
commercial,
multifamily or
tentative
map
N/A N/A N/A N/A Varies
2
Fee to remand applications
from Town Council to Planning
Commission where no error
was made by Planning
Commission
Actual Cost N/A N/A N/A N/A Varies
3
Fee to Appeal Director of
Community Development or
Development Review
Committee decision to
Planning Commission
$234 per
residential N/A N/A N/A N/A Varies
4 Tree Appeals $95.00 N/A N/A N/A N/A $95.00
Appendix C. Governmental and Non-Governmental Constraints
August 2022 Appendix C C-17
Application
Fee
4%
Permit
Tracking
Fee
10%
General
Plan
Update
10%
Advance
Planning
Special
Project
Engineering
Dev Review
Services
Fee Total Fee
5 Appeal Transcription fee of
Planning Commission minutes
Actual Cost min.
$500 deposit N/A N/A N/A N/A Varies
L. Research Services Minimum
Charge
Actual Cost min.
$100 deposit N/A N/A N/A N/A Varies
Table C-3 Total Fees per Unit
Jurisdiction Single-Family Small Multifamily Large Multifamily
Campbell $72,556 $20,599 $18,541
Cupertino $136,596 $77,770 $73,959
Gilroy $69,219 $40,195 $39,135
Los Altos Hills $146,631 N/A N/A
Los Gatos $11,202 $15,375 $15,375
Milpitas $77,198 $74,326 $59,740
Monte Sereno $33,445 $4,815 $4,156
Morgan Hill $55,903 $41,374 $36,396
Mountain View $90,423 $69,497 $82,591
San Jose $9,919 $23,410 $23,410
Santa Clara $72,034 $7,299 $3,048
Saratoga $64,272 $17,063 $15,391
Sunnyvale $133,389 $126,673 $98,292
Note: Inclusive of impact, building and entitlement fees. Source: SCCPC, 2022 citiesassociation.org/documents/constraints-survey-data-
summary-2022 and Los Gatos staff
Table C-4 Fees as a Percentage of Total Development Costs
Jurisdiction Single-Family Small Multifamily Large Multifamily
Campbell 2.6% 2.7% 2.6%
Cupertino 2.9% 10.3% 10.5%
Gilroy 1.5% 5.3% 5.6%
Los Altos Hills 3.1% N/A N/A
Los Gatos 1.2% 0.8% 0.5%
Milpitas 2.8% 9.8% 8.5%
Monte Sereno 0.7% 0.6% 0.6%
Initial Draft 2023-2031 Housing Element
C-18 Appendix C August 2022
Morgan Hill 2.0% 5.5% 5.2%
Mountain View 3.3% 9.2% 11.8%
San Jose 0.4% 3.1% 3.3%
Santa Clara 2.6% 1.0% 0.4%
Saratoga 1.4% 2.3% 2.2%
Sunnyvale 4.8% 16.8% 14.0%
Unincorporated County 0.9% N/A NA
Note: Calculation uses a county-wide average total development cost. Source: SCCPC, 2022 citiesassociation.org/documents/constraints-
survey-data-summary-2022
Permit fees and processing times are not significant constraints to housing production in Los Gatos. In the Spring
of 2022, the Santa Clara County Planning Collaborative conducted a survey of fees and permit processing times
in Santa Clara County. Fourteen of fifteen jurisdictions completed the survey, an excellent response rate. The
results indicate that Los Gatos has overall permit fees that are within the average range of Santa Clara County
jurisdictions.
The Town’s fees also represent a relatively low percentage of the overall cost to develop housing in Los Gatos.
Based on the Santa Clara County Planning Collaborative survey results and an analysis on housing development
costs performed by Century Urban, a San Francisco based real estate consulting firm, the fees represent
approximately 1.2 percent of total development costs for a single-family home, 0.8 percent for a 10-unit
multifamily development, and 0.5 percent for a 100-unit multifamily development. The fee structure does not
disproportionally burden multifamily housing.
Processing and Permitting Time
Government policy at both the State and jurisdictional levels play a major role in determining the costs of building
new housing. Regulations and permitting processes that result in lengthy or uncertain development carry higher
risk and increased financing. Additionally, frequent delays in the entitlement and approval process directly
increase costs, such as additional architectural work, inspections, and community meetings. Streamlining
permitting processes, applying permit application processes consistently, increasing interdepartmental
cooperation, having adequately funded and staffed planning departments, and increasing by-right housing are all
actions jurisdictions can take to reduce the constraints represented by fees and permit processing times.
Each stage of the residential development process must go through some form of Town approval. On average, a
single- or multifamily infill residential application typically processes in approximately three to six months, unless
environmental review is required. Hillside residential applications on average take four to six months to process.
Mixed-use projects are processed in approximately four to eight months, unless environmental review is required.
With environmental review, the process generally takes six to 18 months, depending on the size and complexity
of the project.
Processing of a typical, market rate single- or multifamily housing application includes the following steps:
Submission of an Architecture and Site Application.
Distribution of the application to Planning, Building, Engineering, and the Santa Clara County Fire District
departments.
Staff review of application and staff conference with the applicant to resolve any concerns or plan
deficiencies, including design issues.
If deemed complete, staff continues processing the application and begins environmental review, if
necessary.
Appendix C. Governmental and Non-Governmental Constraints
August 2022 Appendix C C-19
Completion of environmental review and traffic impact analysis, as appropriate. Arborist review,
architectural review, and/or geotechnical review may be conducted during this time through the
Architecture and Site application.
Approval is required by the following bodies:
Development Review Committee (with appeal to the Planning Commission and further appeal to the Town
Council) for projects that require no change in the General Plan or Zoning Code.
For hillside development applications, Planning Commission approval may be required depending on the
scope of the project.
Town Council for projects that require a change in the General Plan or Zoning Code, and for Planned
Developments.
Processing for a typical mixed-use housing project includes the following steps:
Submission of application, including application for a Conditional Use Permit (CUP), and an Architecture
and Site Application.
Distribution of the application to Planning, Building Engineering, and the Santa Clara County Fire District
departments..
Staff review of application and staff conference with applicant to resolve any concerns or plan deficiencies,
including design issues.
If deemed complete, staff continues processing the application and begins environmental review, if
necessary.
Completion of environmental review and traffic impact analysis, as appropriate. Arborist review,
architectural review, and/or geotechnical review may be conducted during this time through the
Architecture and Site application.
Approval is required by one or both of the following bodies:
Planning Commission (with appeal to the Town Council) for projects that require no change in the
General Plan or Zoning Code, and for a CUP and Architecture and Site Application.
Town Council for projects that require a change in the General Plan or z=Zoning Code, and for
Planned Developments.
Design and neighborhood compatibility issues also often lengthen the permitting and processing time. To
address this problem, the Town contracts out to an architectural consultant to review plans and provide
recommendations on development applications compliance with the Residential Design Guidelines or Hillside
Development Standards and Guidelines.
Architectural, geotechnical, and arborist reviews are conducted early in the development application process.
These reviews are conducted during the review of the Planned Development or Architecture and Site applications
and do not lengthen the processing time. These reviews also streamline the public hearing process, allowing the
Planning Commission to rely on the recommendations of Town staff and the Town’s consultants to receive
qualified input from an architect, arborist, and geotechnical consultant, leading to a more efficient approval
process.
Table C-5 Processing Times (in months)
Initial Draft 2023-2031 Housing Element
C-20 Appendix C August 2022
Jurisdiction ADU
Process
Ministerial
By-Right
Discretionary
By-Right
Discretionary
(Hearing
Officer if
Applicable)
Discretionary
(Planning
Commission)
Discretionary
(City
Council)
Campbell 1 1 3 N/A 5 8
Cupertino 1 to 3 1 to 6 2 to 4 2 to 4 3 to 6 6 to 12
Gilroy 1 to 2 1 to 2 2 to 4 N/A 4 to 5 5 to 6
Los Altos Hills 1 to 2 0.5 to 2 2 to 3 3 to 4 4 to 6 5 to 8
Los Gatos 1 to 2 1 to 2 1 to 2 2 to 4 4 to 6 6 to 12
Milpitas 1 to 3 1 to 3 2 to 4 3 to 4 4 to 6 6 to 12
Monte Sereno 0.75 0.75 1 1 to 2 1 to 2 1 to 2
Morgan Hill 1 to 2 1 to 3 *2 to 3 2 to 3 4 to 6 4 to 6
Mountain View 3 to 5 4 to 6 2 to 3 *6 to 18 N/A 12 to 24
San Jose 2 1 to 3 7 7 7 to 11 5 to 12
Santa Clara 0 to 1 0 to 1 0 to 3 4 to 9 6 to 9 6 to 12
Saratoga 1 1 to 2 2 to 3 N/A 4 to 6 6 to 12
Sunnyvale 1 to 3 1 to 3 3 to 6 6 to 9 9 to 18 9 to 18
Unincorporated
County 4 to 6 6 to 8 9 to 12 12 to 15 15 to 18 15 to 18
Entitlements Only. Source: SCCPC, 2022 citiesassociation.org/documents/constraints-survey-data-summary-2022
Jurisdictional permit processing procedures that are lengthy or uncertain can dissuade developers from building
new housing or result in housing that is more expensive. Within Los Gatos, the permit processing times are
within the average range for jurisdictions within Santa Clara County. The Town’s permit process also does not
disproportionally burden ADU applications or applications for multifamily housing.
SB 35 Streamlining
(Government Code section 65913.4) allows qualifying development projects with a specified proportion of
affordable housing units to move more quickly through the local government review process and restricts the
ability of local governments to reject these proposals. The bill creates a streamlined approval process for
qualifying infill developments in localities that have failed to meet their RHNA, requiring a ministerial approval
process, removing the requirement for CEQA analysis, and removing the requirement for discretionary
entitlements granted by the Planning Commission.
Since the adoption of this section of the Government Code, the Town has received one application under these
provisions. The Town has included a program in the Element to prepare an SB35 checklist and written
procedures for processing SB35 applications.
SB9 California Housing Opportunity and More Efficiency (HOME) Act
SB9, also known as the California Housing Opportunity and More Efficiency (HOME) Act, is a state bill that
requires cities to allow one additional residential unit onto parcels zoned for single-dwelling units. Since the
adoption of this section of the Government Code, the Town has adopted an interim SB9 ordinance and is in the
process of developing a permanent ordinance for adoption by the end of 2022.
Appendix C. Governmental and Non-Governmental Constraints
August 2022 Appendix C C-21
Requests to Develop at Densities Below Those Permitted
New State Housing Element law now requires the non-governmental constraints analysis to evaluate developer
requests to build at densities below the density identified in the Housing Element sites inventory. In Los Gatos,
properties generally develop around the mid to high range of allowable densities. Requests to develop at
densities below those permitted are not an issue in Los Gatos.
Length of time between Application Approval and Building Permit Issuance
New Housing Element law now also requires an examination of the length of time between receiving approval for
a housing development and submittal of an application for building permits. The time between application
approval and building permit issuance is influenced by a number of factors, none of which are directly impacted
by the Town. Factors that may impact the timing of building permit issuance include: required technical or
engineering studies; completion of construction drawings and detailed site and landscape design; securing
construction and permanent financing; and retention of a building contractor and subcontractors.
The majority of residential permits in Los Gatos are for single-family homes, with building permit issuance
generally taking eight to 14 months after Planning approvals. Hillside properties may take a few months longer
due to the need for technical and engineering studies. Among the Town’s recent multifamily developments, the
time between approvals and permit issuance has averaged 12 to18 months. In Los Gatos, most approved
projects are constructed in a reasonable time period
C.2 Local Housing Programs
State Housing Element law requires that an analysis of governmental constraints on housing production include
local government programs that regulate housing development in any way, including imposing housing cost
limitations or encouraging changes in density. Los Gatos has six local housing programs that are potential
constraints on market-rate housing production in the Town. The Below Market Price Program, Affordable Housing
Fund, Rental Dispute Resolution Program, Density Bonus Program, State Density Bonus Program, and the
Affordable Housing Overlay are discussed below.
Below Market Price (BMP) Program
The BMP Program implements the Town of Los Gatos’s inclusionary zoning ordinance, which requires that a
portion of new residential construction in Los Gatos be dedicated to affordable housing. Los Gatos’s inclusionary
zoning ordinance was adopted in 1979 as one of the first of such programs in California.
The BMP Program promotes the development of affordable housing units by providing standards and guidelines
that require the development of a certain number of quality affordable units per rental or owner development
project, based on the size of the project. The BMP Program requires the development of affordable housing
where sales and rents cannot be more than 80 percent of the current HUD Fair Market Rents (FMR) as
determined by the Santa Clara County Housing Authority. The BMP Program allows low- and moderate-income
households the opportunity to purchase low- and moderate-income housing in Los Gatos.
The BMP Program requirements apply to all residential development projects that include five or more residential
units or parcels which involve:
New construction of ownership or rental housing units, including mixed-use developments and addition of
units to existing projects.
Subdivision of property for single family or duplex housing development.
Conversion of rental apartments to condominiums or other common interest ownership.
Conversion of non-residential use to residential use.
Initial Draft 2023-2031 Housing Element
C-22 Appendix C August 2022
The intent of the BMP Program is to provide a supply of affordable housing for households who work or currently
reside in Los Gatos. However, there may be circumstances when the construction of a BMP unit is impractical.
The Town will consider, at its discretion, a fee payment in-lieu of constructing BMP units for Planned Unit
Developments with an underlying HR zone or for residential developments with five to nine units. The required in-
lieu fee of six percent of the building permit valuation for the entire project must be paid to the Town prior to
issuance of the certificate of occupancy for the market-rate units.
Additionally, the Town Council may consider off-site construction of BMP units for continuum care facilities,
residential developments in the HR zone, or residential developments with five to nine units provided that
developers provide sufficient justification that an on-site BMP is infeasible.
The developer of “for sale” BMP units shall enter into an affordability agreement with the Town. The agreement
will ensure that the BMP units are sold to qualified buyers and will be released by the Town through the escrow
process once the BMP is sold to a qualified buyer. Because the BMP Program regulates the number of affordable
units required as part of new residential construction in Los Gatos, the program could be considered a constraint
on market-rate housing development. However, because the BMP Program requires the construction of
affordable units with every new qualifying development, the Town sees this program as an opportunity to create
and preserve affordable housing for the community. Based on a track record of successful development and
preservation of affordable housing through the BMP Program, Los Gatos does not consider the program to be a
constraint on affordable housing development; nevertheless, the Town proposes to study the BMP Program and
implement recommendations to augment and improve it in order to facilitate the construction of more units.
Affordable Housing In-Lieu Fee Fund
In-lieu fees are paid into the Town’s Affordable Housing Fund and are calculated as six percent of building permit
valuation as determined by the Building Official. As previously noted, these fees may be paid by developers of
new residential construction with five or more units but less than 10 units or new residential construction in a
Planned Unit Development with an underlying zone of HR, instead of building an affordable housing unit(s) under
the BMP Program. All residential construction over 10 units must build affordable units. Payment of in-lieu fees is
required for the approval of Hillside Planned Developments with five or more residential sites. Use of the
Affordable Housing Fund includes, but is not limited to:
Subsidizing the cost of owner-occupied units to make them affordable to low and/or moderate-income
households.
Purchasing rental units to make them affordable to low and/or moderate-income households.
Purchasing land for the future development of affordable housing.
Developing affordable housing.
Supplementing affordable housing projects developed through the Los Gatos Redevelopment Agency.
Funding administration of the program, as approved by the Town Council in its annual budget process.
This additional fee levied on developers may be considered a constraint on housing development; however, the
fees are paid into a fund that will be used to develop more affordable housing in Los Gatos. Given the low rate of
construction of affordable units, the Town proposes to study the In-Lieu Fund Program and implement
recommendations to augment and improve it in order to facilitate the construction of more units.
Rental Dispute Resolution Program
The Los Gatos Rental Dispute Resolution Program provides conciliation, mediation and arbitration services for
both renters and landlords in Los Gatos. The program is administered by Project Sentinel, a local non-profit
organization contracted by the Town. This program is not considered a constraint on housing development in Los
Gatos. Los Gatos renters may also contact Neighborhood Housing Services Silicon Valley for assistance.
The Town helps preserve affordable rental housing costs through the Rental Mediation and Dispute Resolution
Ordinance which applies to rental complexes of three or more units. The ordinance sets an annual limit on rent
Appendix C. Governmental and Non-Governmental Constraints
August 2022 Appendix C C-23
increased to five percent unless the landlord is able to demonstrate capital or financing costs to justify a greater
increase. The Town has similar rent controls for mobile home units.
Mobile homes are an affordable housing resource in the Town of Los Gatos. They are often owned by seniors,
households on fixed incomes, and households within the lower and moderate-income categories. Mobile home
tenants are in the unique position of having made a substantial investment in a housing unit for which ground
space is rented. The Mobile Home Ordinance establishes rent increase control within mobile home parks to
ensure that a variety of housing types, including mobile homes, remain viable options to lower and moderate-
income households in the community. Rents in mobile home parks cannot be increased by more than five
percent annually unless operations and maintenance expenses significantly increased within the most recent year
in comparison to the previous year.
Density Bonus Program
The Density Bonus Program allows qualified projects to add up to 100 percent of the units provided by the
General Plan land use designation as long as these additional units are restricted to seniors, disabled persons,
very low and/or low-income households.
Over the last Housing Element cycle, the Town approved the North 40 Phase One development which included
49 very-low income and one moderate-income manager unit as density bonus units.
The Density Bonus Program has the potential to provide additional opportunities to build more, affordable units in
Los Gatos. The Town is including an Implementation Program to study the existing Density Bonus Ordinance and
recommend changes to increase the number of units constructed. The study will include an evaluation of the
implementation of the ordinance to date and actual construction of affordable housing units that utilized the
Density Bonus Program.
State Density Bonus Program
The Town adopted the State Density Bonus Program in June 2012. The program allows densities, incentives,
concessions and maximum parking standards consistent with State law. In addition, the Town modified the
program to apply to senior and physically handicap populations.
The Town has not processed a request for a State Density Bonus since the ordinance was adopted in June 2012
because the Town’s BMP Program and General Plan policies exempt affordable housing units from the calculated
density in a project. The State Density Bonus Program provides opportunities to build additional, affordable units
in Los Gatos; consequently, this program is not considered a constraint on housing development.
Affordable Housing Overlay Zone
The Town adopted the AHOZ, and it applies to one property in the Housing Sites Inventory (see Table 6-2). The
AHOZ allows densities (up to 20 units per acre on designated sites), development standards, and concessions
that will encourage affordable housing. The Housing Element includes a program to modify the affordability
requirements in the Town Code to require a minimum of 40 percent affordable units on the Southbay AHOZ site
instead of the currently prescribed affordability levels. Affordability would be for low and very low-income
households.
Constraints on Housing for Persons with Disabilities
State law requires that the Housing Element analyze governmental constraints to housing for persons with
disabilities. How a jurisdiction defines “family” in its zoning regulations can be a potential constraint to facilitating
housing for persons with disabilities. The existing definition of “family” in the Town Code is “one or more persons
who comprise a single housekeeping unit” or “households of six or fewer persons living in a residential care
facilities small family home as defined by the California Community Care Facilities Act.”
Initial Draft 2023-2031 Housing Element
C-24 Appendix C August 2022
In Los Gatos, group homes are defined by the Town Code as synonymous with small family home residential care
facilities, which are defined by the Town Code as “a residential care facility in the dwelling of a licensee in which
care or supervision is provided for six or fewer persons. Whether or not unrelated persons are living together, a
residential facility that serves six or fewer persons shall be considered a residential use of property for the
purposes of this article. In addition, the residents and operators of such a facility shall be considered a family for
the purposes of any law or zoning ordinance which relates to the residential use of property.” Group homes are
permitted by right in all residential districts, consistent with State law, and are permitted with a CUP in the Office
(O), Neighborhood Commercial (C-1), Central Business District (C-2), and Restricted Highway Commercial (CH)
zones. The Town imposes no spacing or concentration requirements on any of the allowed residential care
facilities. Large family home residential care facilities, which have a capacity for seven to 12 children or seven to
15 adults are allowed in all districts with a CUP, except where large family homes are prohibited in the RMH, LM,
and CM districts.
Generally, the Town facilitates housing for persons with disabilities by following the accessibility requirements of
the California Title 24 Multifamily Accessibility Regulations for multifamily housing of three or more units. Housing
rehabilitation assistance and accessibility improvements are provided through the Town’s Community Services
and Community Development departments.
The Town encourages accessibility improvements by requiring that specific design features be incorporated into
all new residential home projects as a condition of approval. These requirements include:
A wooden backing that is no smaller than 2 inches by 8 inches in all bathroom walls, at water closets,
showers, and bathtubs. It will be located 34 inches from the floor to the center of the backing, suitable for
the installation of grab bars.
All passage doors of at least 32 inches wide on the accessible floor.
A primary entrance that is a 36-inch-wide door, including a five-foot by five-foot level landing, no more than
one inch out of plane with the immediate interior floor level, with an 18-inch clearance.
In 2013, the Town adopted a procedure for requesting reasonable accommodation for persons with disabilities
seeking equal housing access under the Federal Fair Housing Act and the California Fair Employment and
Housing Act and in accordance with State housing law. A request for reasonable accommodation may include a
modification or exception to the standards and practices for the siting, development, and use of housing or
housing-related facilities that would eliminate regulatory barriers to accessible housing. Requests for reasonable
accommodation shall be reviewed by the Planning Director within 45 days of the request. However, if the request
is concurrent with a discretionary land use application, then the body overseeing the discretionary land use
application will also make a determination on the reasonable accommodation request. There are seven
mandatory criteria for granting a reasonable accommodation request:
The housing will be used by an individual disabled under the Federal Fair Housing Act and the California
Fair Employment and Housing Act.
The request is necessary to make specific housing available to an individual with a disability.
The request would not impose an undue financial or administrative burden on the Town.
The request would not require a fundamental alteration in the nature of a Town program or law, including
but not limited to land use and zoning.
There would be no impact on surrounding uses.
Due to physical attributes of the property or structures the request is necessary.
There is no alternative reasonable accommodation which may provide an equivalent level of benefit.
Appendix C. Governmental and Non-Governmental Constraints
August 2022 Appendix C C-25
By adopting a formal procedure, the Town has provided an objective process with clear directions for both the
applicant and the decision makers. This is a benefit to persons with disabilities and is not a constraint on housing.
Low Barrier Navigation Centers
AB 101, adopted in 2019, requires approval 'by right' of low barrier navigation centers that meet the requirements
of State law. A “Low Barrier Navigation Center” means a Housing First, low barrier, service-enriched shelter
focused on moving people into permanent housing that provides temporary living facilities while case managers
connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing.
If the City receives applications for these uses, it will process them as required by State law. A program has been
included in the Housing Element to develop by right procedures for processing low barrier navigation centers.
Employee Housing
California Health and Safety Code Section 17021.5 (Employee Housing Act) requires jurisdictions to permit
employee housing for six or fewer employees as a single-family use. Employee housing shall not be included
within the zoning definition of a boarding house, rooming house, hotel, dormitory, or other similar term that implies
that the employee housing is a business run for profit or differs in any other way from a family dwelling.
Jurisdictions cannot impose a CUP, variance, or other zoning clearance of employee housing that serves six or
fewer employees that is not required of a family dwelling of the same type in the same zone. The Town’s Zoning
Code addresses small employee housing as a residential care facility.
Farm Employee Housing
The Town of Los Gatos does not currently have any identified farmworkers. Given the lack of farmworkers in the
community, the Town has not identified a need for specialized farmworker housing beyond overall programs for
housing affordability.
C.3 Non-Governmental Constraints to Housing
Development
Market constraints to housing development in Los Gatos are the primary non-governmental impediment to
housing production. The Town is located near Silicon Valley jobs and offers residents desirable amenities such
as an historic downtown and a school district in which student performance ranks in the top four percent of the
State.
Development Costs
In January 2022, the Santa Clara County Planning Collaborative distributed a survey to Santa Clara County
jurisdictions to better understand the fees and processing times involved in the development of single-family and
multifamily housing. Fourteen out of sixteen jurisdictions responded with locally collected data, which
Collaborative staff used to identify major trends and produce data tables 1. Additionally, the real estate economics
consulting firm Century Urban conducted independent research on land and development costs 2. Data and
preliminary reports can be found on the Collaborative website: citiesassociation.org/constraints.
1 Santa Clara County Planning Collaborative, 2022. Summary of Constraints Survey Data. citiesassociation.org/documents/constraints-
survey-data-summary-2022
2 Century Urban, 2022. San Mateo and Santa Clara Counties Development Cost & San Mateo County Unit Mix Research.
citiesassociation.org/documents/development-cost-data.
Initial Draft 2023-2031 Housing Element
C-26 Appendix C August 2022
The cost of development is generally high in Santa Clara County and represents a significant constraint on the
production of both single-family and multifamily housing. According to analysis by Century Urban, average
development costs for single-family homes in the county range from $1,667,000 to $5,910,000. The cost of land
and the size of the units are the two factors causing the most variance. Multifamily development costs are also
quite high, though lower on a per unit basis compared to single family homes. Based on a survey of local
development costs, Century Urban estimates the average cost per unit for a 10-unit prototype at $726,000 to
$846,000. The average cost per unit to develop a 100-unit building ranges from $672,000 to $792,000.
Jurisdictions were asked to estimate development fees based on the following hypothetical housing types and
related detailed assumptions:
Single-Family: A new single-family house on an empty lot, 2,600 sq. ft. or 5,000 square feet, in an existing
neighborhood with no significant grading or other complicating factors.
Small Multifamily: A project that includes 10 units in one building on one acre, where no zoning changes
are required and permitting is by-right with medium complexity.
Large Multifamily: A project that is comprised of 100 units on two acres, 80,000 total square feet, with
construction type V over a concrete podium.
Century | Urban was engaged by Baird + Driskell, hired by Association of Bay Area Governments (ABAG)
Planning Collaborative to perform research on the development costs of certain residential prototypes in Santa
Clara County. The estimates shown below are based on data and sources including but not limited to: similar
projects Century | Urban has underwritten and/or priced; specific project economics Century | Urban has
reviewed; direct conversations with developers and cost estimators; database research including CoStar, MLS,
Redfin, and title databases; online research sources including municipality and project websites; market reports
compiled by real estate sales and research organizations; and, Century | Urban’s general experience assessing
residential project feasibility in the San Francisco Bay Area.
Land Costs
The price of land also varies across the county based on site conditions and location, but land costs in Santa
Clara County are notably higher than costs in neighboring counties. Century Urban estimates the average land
price in Santa Clara County for single-family homes (based on sales within the last three years) at $1,320,000.
Land costs are lower for multifamily developments, estimated at $600,000 for small developments and
$6,000,000 for large developments, or $60,000 per unit. The data does not include properties with existing
homes or infrastructure that were redeveloped as new single-family homes, and the data for some cities is limited.
As the data collected is not comprehensive, summaries and averages may be valuable for reaching overall
conclusions about the range of land prices in the counties, but they may or may not be representative of a given
city’s average or median land price or the land price for a given parcel. The information should therefore be
reviewed noting the limited number of data points for certain cities, including Los Gatos where 15 data points
were available. Land prices vary substantially by location, topography, site conditions, shape of the parcel,
neighboring uses, access, noise, and many other factors. In addition, completed sales are necessarily past
transactions and may not represent the current state of the market and expected future land sale prices.
There are very few vacant parcels zoned for multifamily development, and such parcels demand premium prices
because of the high demand to live in Los Gatos. Additionally, most parcels have existing improvements that
increase acquisition costs. Countywide, the land costs for multifamily development sites cost approximately
$60,000 per unit.
Hard and Soft Costs
Soft costs for housing development include the cost of architectural, engineering, accounting, legal and other
professional services, as well as the cost of obtaining permits and paying government-imposed fees. Carrying
costs and the cost of construction financing can also be considered soft costs. Century Urban’s analysis finds
Appendix C. Governmental and Non-Governmental Constraints
August 2022 Appendix C C-27
that soft costs (such as impact fees and costs accumulated through permitting delays) are hard costs. Hard costs
include the costs of labor and materials.
Hard costs are very high in Santa Clara County, and both the high cost of labor and the high cost of materials
could be considered constraints on housing development. According to analysis by Century Urban, residential
hard and soft costs do not vary significantly across Santa Clara County.
Hard and soft costs contribute significantly to the overall cost of developing new housing. Hard costs comprise
over half of development costs for multifamily housing. Although hard costs are significant for single-family
production as well, they comprise a lower percentage of overall costs because of the larger role of land costs in
single-family construction. High hard costs are difficult for individual jurisdiction to mitigate.
Single-family detached ~2,660 square feet: $81 to $965 per square foot.
Single-family detached ~5,000 square feet: $714 to $1,174 per square foot.
Multifamily apartments/condominiums less than 10 units on one acre: $726,500 to $846,500 per unit.
Three- to four-story 100-unit multifamily apartment/condominiums with type V construction over a concrete
podium parking: $672,500 to $792,500 per unit.
Availability of Financing
The residential real estate market is strong in the Town of Los Gatos. Local realtors and developers have noted
that Los Gatos was affected by the home mortgage foreclosure crisis that plagued many communities in the late
2000s. Adjustable-rate mortgages, jumbo loans (those above $417,000), and Government-insured Federal
Housing Administration home purchase loans, in addition to all-cash offers, are common in Los Gatos. Adequate
financing through local banks is available to the Los Gatos community.
The Housing Trust of Santa Clara County offer three low-interest, down payment or closing cost loan programs
for income qualified buyers in Los Gatos. Participation in this program includes homebuyer education classes.
The County of Santa Clara Office of Affordable Housing administers three homebuyer assistance programs. The
Home Investment Partnerships Program offers down payment assistance for first-time buyers. The Mortgage
Credit Certificate Program reduces the federal income taxes of qualified borrowers purchasing qualified homes,
thus acting like a mortgage subsidy. The Down payment Assistance Program for First-time Buyers offers a
subsidy for borrowers meeting a maximum income limit and maximum purchase price limit.
The Home Mortgage Disclosure Act (HMDA) requires the reporting of data on residential loan applications, which
provides insight into the availability of financing in the community. Table C-6 summarizes HMDA data for the San
Jose, Sunnyvale, Santa Clara MSA. As shown in the table, approximately 25 percent of all loan applications for
the lowest income group are denied.
Table C-6 Home Purchase and Improvement Loans
Income Group
Loan
Applications
Loans Approved (Originated) Loans Denied
# % # %
>50% of MSA AMI 9,757 4,518 46.3% 2,550 26.1%
50-79% of MSA AMI 19,780 12,673 64.1% 2,683 13.6%
80-99% of MSA AMI 8,535 5,775 67.7% 852 10.0%
100-119% of MSA AMI 28,507 20,122 70.6% 2,361 8.3%
≥120 of MSA AMI 87,715 59,930 68.3% 6,951 7.9%
Initial Draft 2023-2031 Housing Element
C-28 Appendix C August 2022
TOTAL 154,294 103,018 66.8% 15,397 10.0%
SOURCE: Home Mortgage Disclosure Act (HMDA), 2020
Environmental Constraints
The environmental setting affects the feasibility and cost of residential development. These areas contain
environmental constraints on development, such as steep slopes, landslide hazards, fire hazards, or flood
hazards, and therefore, much of the undeveloped land has been set aside as open space. The Town is adjacent
to other built out communities and nestled against the Santa Cruz Mountains, limiting opportunities for expansion.
The following are environmental constraints and hazards that affect, in varying degrees, existing and future
residential developments.
Urban and Wildland Fire Hazards
Wildfires are becoming an all too regular event in California, and both urban and wildland fires are a threat to the
Town of Los Gatos. Wildfires that burn exclusively in uninhabited natural areas generally pose little risk to lives or
property, although the smoke from such fires may cause respiratory problems for people nearby. Fires that occur
along the wildland-urban interface (WUI) are much more of a hazard, as they can spread into urbanized areas.
Wildfire risk is dependent on several factors, including the amount and type of vegetation in the area, weather,
and local topography. Factors such as narrow, winding roads and vegetation also slow response to fires,
increasing the risk of spread.
Based on the increased potential for devasting wildfires in Santa Clara County and the Town of Los Gatos, CAL
FIRE developed and adopted “Fire Hazard Severity Zone” maps. These maps highlight that most of the County is
located within the “high” fire severity zone, with smaller portions of the County within the “moderate” and “very
high” fire severity zones. More than half of the southern portion of the Town is in the Very High Fire Hazard
Severity Zone, with most of the areas to the south in the High or Moderate zones. The Town must therefore
strongly incorporate fire hazard mitigation into its land use decisions and requirements to protect residents and
property. Potential impacts are mitigated by policies in the 2040 General Plan Hazards and Safety Element
including the following:
Require new development, including additions to existing structures, located in or adjacent to fire hazard
areas to minimize hazards to life and property, by using fire preventive site design, access, fire-safe
landscaping, building materials, and incorporating defensible space and other fire suppression techniques.
Minimize exposure to wildland and urban fire hazards through proactive code enforcement, public
education programs, use of modern fire prevention measures, quick and safe access for emergency
equipment and evacuation, and emergency management preparation.
Restrict development in areas with inadequate water flow or emergency access.
Monitor and remove excessive buildup of flammable vegetative materials on Town properties and along
critical ingress/egress routes in the WUI.
Geological and Seismic Hazards
The San Francisco Bay Area is in one of the most active seismic regions in the United States. Los Gatos is near
several active faults including the San Andreas, Hayward, and Calaveras Faults. Ground shaking is the primary
risk in an earthquake and can set off a chain reaction of secondary landslides and liquefaction, or loss of soil
strength. The region around the Lexington Reservoir also has higher risk of ground shaking should an earthquake
occur. Implementation of applicable building codes and geotechnical investigations will minimize potential loss of
life and damage to property from primary and secondary seismic hazards and siting essential structures and
services outside high-risk areas will enable faster emergency response after an earthquake.
Seismic activity within or near the Santa Clara County region has historically caused significant damage to
buildings and infrastructure in the Town of Los Gatos due to ground shaking and landslides. Five earthquakes
have affected Los Gatos in the 20th century, with the 1906 San Francisco and 1989 Loma Prieta earthquakes
Appendix C. Governmental and Non-Governmental Constraints
August 2022 Appendix C C-29
having the highest magnitude. Potential impacts are mitigated by policies in the Draft 2040 General Plan Hazards
and Safety including the following:
Require new development to be sited away from high risk geologic and seismic hazard zones or, if located
in a high-risk zone, incorporate construction techniques or specialized technologies to reduce risk. Restrict
new development and redevelopment based on the levels of risk and potential severity of geologic
hazards.
Require geotechnical reports analyzing seismic hazards, grading, and construction methods.
Require that a licensed geologic/geotechnical engineer complete the Town Geologic Hazards Checklist for
all new proposed development to demonstrate that potential hazards have been identified and that
proposed structures, including grading cuts and fills, will be designed to resist potential earthquake effects.
Implement the Hillside Development Standards and Guidelines.
Flood and Inundation Hazards
Flooding can threaten life, safety, and property and can occur in a number of ways. The level in a body of water,
such as a lake or creek, can rise higher than the water body’s banks, causing it to overflow into nearby areas.
Heavy precipitation can overwhelm the ability of soil to absorb water or storm drains to carry it away, causing
water to build up on the surface. Localized flooding may also occur as a result of infrastructure failure, such as a
burst water tank or pipe. In Los Gatos, the floods that are of most concern are from heavy rainfall causing local
flooding or flash floods. Flooding puts various populations in Town at risk. A 500-year flood could affect upwards
of 28,000 people and cause $10 billion of structural damage.
Beyond localized flooding, Los Gatos faces a flood threat from dam inundation. While less common, dam
inundation is recognized in both the Town Emergency Operations Plan and Santa Clara County OAHMP. The
Lexington Reservoir as contained by the James J. Lenihan Dam is the largest concern for dam inundation.
Lexington Reservoir is the third largest reservoir in Santa Clara County storing 19,044 acre-feet of water. The
potential inundation zone in the event of failure is significant, with the potential to affect over 3,000 people and
damage over 1,000 structures. As future climate change-related impacts increase, localized flooding will become
more common due to more extreme storms increasing the potential for more frequent and severe riverine
flooding. Potential impacts are mitigated by policies in the Draft 2040 General Plan Hazards and Safety including
the following:
Require site planning and building design to mitigate identified flood and inundation hazards.
Require that new development and substantial improvements to existing structures meet Federal and
State standards when located within FEMA Flood Insurance Rate Maps (FIRMs) designated 100-year
flood zones, as shown in Figure 9.5 or most current FEMA mapping.
Cooperate with the Santa Clara Valley Water District to develop and maintain additional stormwater
retention facilities in areas where they are needed or where the design capacity of existing retention
facilities cannot be restored.
Hazards and Hazardous Materials
The use, manufacture, production, transportation, storage, treatment, disposal, and clean-up of hazardous
materials and hazardous wastes present a potential threat to the health and safety of those who are using the
materials and those who could be affected by improper or accidental release or disposal. Hazardous materials
include all toxic, flammable, combustible, corrosive, poisonous, and radioactive substances that possess the
potential to bring harm to the public or the environment. The Town maintains a comprehensive list of Hazardous
Waste and Substance sites where hazardous materials are present and cleanup activities are or may be
necessary. Potential impacts are mitigated by policies in the 2040 General Plan Hazards and Safety Element.
Initial Draft 2023-2031 Housing Element
C-30 Appendix C August 2022
Noise and Air Quality
Noise and air quality impacts associated with Highways 17 and 85, other high-volume arterial roadways, and the
Union Pacific Railroad line parallel to and south of Highway 85 could potentially impact housing. The California
Building Code and the Noise Element of the Los Gatos General Plan contain policies and standards that mitigate
noise impacts, and the regulations of the Bay Area Air Quality Management District require careful study and
mitigation of health risks from poor air quality. Potential impacts are mitigated by policies in the Draft 2040
General Plan Environment and Sustainability Element.
Environmental constraints to housing development are mitigated where public health, safety, and welfare can be
protected.
Vacant and Available Sites D
APPENDIX
August 2022 Initial Draft 2023-2031 Housing Element D-1
D.1 Vacant and Available Sites
The Plan Bay Area 2050 Final Blueprint 1 forecasts that the nine-county Bay Area will add 1.4 million new
households between 2015 and 2050. For the eight-year time frame covered by this Housing Element Update, the
Department of Housing and Community Development (HCD) has identified the region’s housing need as 441,176
units. The total number of housing units assigned by HCD is separated into four income categories that cover
housing types for all income levels, from very low-income households to market rate housing. This calculation,
known as the Regional Housing Needs Allocation (RHNA), is based on population projections produced by the
California Department of Finance as well as adjustments that incorporate the region’s existing housing need. The
adjustments result from recent legislation requiring HCD to apply additional adjustment factors to the baseline
growth projection from California Department of Finance, in order for the regions to get closer to healthy housing
markets. The adjustments focus on the region’s vacancy rate, level of overcrowding and the share of cost
burdened households, and seek to bring the region more in line with comparable areas. The new laws governing
the methodology for how HCD calculates the RHNA resulted in a significantly higher number of housing units for
which the Bay Area must plan compared to previous cycles.
D.2 Regional Housing Needs Allocation
In December 2021, ABAG adopted a Final Regional Housing Needs Allocation (RHNA) Methodology. For Los
Gatos, the RHNA required to be planned for the 6th cycle Housing Element Update is 1,993 units, an increase
from the last cycle.
RHNA Summary
Los Gatos’s share of the regional housing need for the eight-year period from 2023 to 2031 is 1,993 units, which
is a 322 percent increase over the 619 units required by the 2014 to 2022 RHNA. The housing need is divided
into the five income categories of housing affordability. Table D-1 shows Los Gatos’s RHNA for the planning
period 2023 through 2031 in comparison to the RHNA distributions for Santa Clara County and the Bay Area
region.
Table D-1 Los Gatos’s Regional Housing Needs Allocation: 2023–2031
Income Group
Los
Gatos
Units
Percent
Santa Clara
County
Units
Percent
Bay
Area
Units
Percent
Very Low Income (<50% of AMI) 537 26.9% 32,316 24.9% 114,442 25.9%
Low Income (50%-80% of AMI) 310 15.6% 18,607 14.4% 65,892 14.9%
Moderate Income (80%-120% of AMI) 320 16.1% 21,926 16.9% 72,712 16.5%
Above Moderate Income (>120% of AMI) 826 41.4% 56,728 43.8% 188,130 42.6%
Total 1,993 100.0% 129,577 100.0% 441,176 100.0%
1 Plan Bay Area 2050 is a long-range plan charting the course for the future of the nine-county San Francisco Bay Area. It
covers four key issues: the economy, the environment, housing and transportation
Draft 2040 General Plan
D-2 Initial Draft 2023-2031 Housing Element August 2022
SOURCE: ABAG 2021
Progress to Date
The RHNA planning period for the 2023-2031 Housing Element (6th Cycle) is June 30, 2022 through December
31, 2030. The statutory adoption date for the 6th Cycle Housing Element is January 1, 2023—a full six months
after the beginning of the planning period. To account for this discrepancy, the Town of Los Gatos must account
for the number of housing units permitted prior to adoption of the 6th Cycle Housing Element and apply these to
the 2023-2031 RHNA. Accordingly, the units permitted in this period count towards the 2023-2031 planning
period RHNA and are subtracted from the 6thCycle RHNA. Table D-2 shows the Town of Los Gatos’s adjusted
RHNA, which accounts for progress made prior to the adoption of the updated Housing Element document.
Table D-2 Los Gatos’s Adjusted RHNA
Very Low-
Income
Units
Low-
Income
Units
Moderate-
Income
Units
Above
Moderate-
Income
Units
Total
Units
2023–2031 RHNA 537 310 320 826 1,993
Units permitted between June
30, 2022 and January 1, 2023
Remaining RHNA
SOURCE: Town of Los Gatos
D.3 Site Inventory
The purpose of the sites inventory is to identify and analyze specific sites that are available and suitable for
residential development during the planning period between 2023-2031 in order to accommodate Los Gatos’s
assigned 1,993 housing units. The Town does not build the housing but rather creates the implementation
programs and policies to plan for where the housing can be located and how many units could be built on
potential sites.
Overview of Selected Sites
This section provides information on the current list of potential sites under consideration for determining how the
Town will accommodate the State’s required minimum of 1,993 housing units. Please note that the site numbers
listed here are added only as a way to reference the site and label it on a map. The site number is not any
indication of preference or priority. Figure D-1 shows an overview of the potential sites inventory map being
developed for Los Gatos’ 6thCycle Housing Element Update.
Appendix D. Vacant and Available Sites
August 2022 Initial Draft 2023-2031 Housing Element D-3
Figure D-1 Potential Sites Inventory Map
Sites Details
This section provides information on each of the sites selected for inclusion in the site inventory of vacant/partially
vacant and available sites.
Draft 2040 General Plan
D-4 Initial Draft 2023-2031 Housing Element August 2022
Appendix D. Vacant and Available Sites
August 2022 Initial Draft 2023-2031 Housing Element D-5
Site A-2 Park Avenue
Address: 50 Park Avenue and 61 Montebello Way
Maximum Number of Housing Units: 10
“By Right” + 20% Affordable: Not Required – Not used in previous cycle
Description: The Park Avenue A-2 site is located in the Downtown District on the southwest end
of town on a wooded parcel that is currently identified as Very High Fire Risk. The site is
triangular in shape with parking lots and South Santa Cruz Avenue on one side, Highway 17 on a
second side, and Downtown Los Gatos forming the third side. Proximity to Downtown Los Gatos
ensures that this site provides pedestrian access to urban services. This site currently is
developed with residential units and is designated High Density Residential - Very High Fire
Hazard Severity Zone. The site is zoned R-1D and would allow a maximum of 10 housing units
developed at a density of 12 du/ac. The property owner has expressed interest in residential
redevelopment of the property.
Constraints: Very high fire hazard; an existing residential dwelling units would require demolition
Figure D-3 shows an aerial view of the Park Avenue A-2 Site.
Figure D-3 Park Avenue (Site A-2)
Draft 2040 General Plan
D-6 Initial Draft 2023-2031 Housing Element August 2022
Site A-3 Santa Cruz Avenue
Address: 101 S. Santa Cruz Avenue
Maximum Number of Housing Units: 24
“By Right” + 20% Affordable: Not Required – Not used in previous cycle
Description: The Santa Cruz Avenue A-3 site is located in the Downtown District on the
southwest end of town along South Santa Cruz Avenue on an occupied commercial parcel in
Downtown Los Gatos. The site is currently identified as Very High Fire Risk.Proximity to
downtown Los Gatos ensures that this site provides pedestrian access to urban services. This
site is designated as Central Business District and zoned C-2, which would allow a maximum of
24 housing units developed at a density of 30 du/ac. The property owner has expressed interest
in residential redevelopment of the property.
Constraints: Very high fire hazard; the existing commercial use would require demolition.
Figure D-4 shows an aerial view of the Santa Cruz Avenue A-3 Site.
Figure D-4 Santa Cruz Avenue (Site A-3)
Appendix D. Vacant and Available Sites
August 2022 Initial Draft 2023-2031 Housing Element D-7
Site A-7 Corner of Highway 9 and University Avenue
Address: 165 Los Gatos/Saratoga Road
Maximum Number of Housing Units: 11
“By Right” + 20% Affordable: Not Required – Not used in previous cycle
Description: The Corner of Highway 9 and University Avenue, A-7 site is located in the North
Santa Cruz Avenue District at the corner of University Avenue and Highway 9 on the north end of
Downtown Los Gatos on an occupied commercial site (formerly Hults). Proximity to downtown
Los Gatos ensures that this site would provide pedestrian access to urban services. This site is
designated as Central Business District and zoned C-2, which would allow a maximum of 11
housing units developed at a density of 30 du/ac. The property owner has expressed interest in
residential redevelopment of the property.
Constraints: Existing vacant commercial use would require demolition.
Figure D-8 shows an aerial view of the Corner of Highway 9 and University Avenue A-7 Site.
Figure D-8 Corner of Highway 9 and University (Site A-7)
Draft 2040 General Plan
D-8 Initial Draft 2023-2031 Housing Element August 2022
Appendix D. Vacant and Available Sites
August 2022 Initial Draft 2023-2031 Housing Element D-9
Draft 2040 General Plan
D-10 Initial Draft 2023-2031 Housing Element August 2022
Site B-1 Los Gatos Shopping Center
Address: 404, 430, and 432 N. Santa Cruz Avenue
Maximum Number of Housing Units: 67
“By Right” + 20% Affordable: Not Required – Not used in previous cycle
Description: The Los Gatos Shopping Center B-1 site is located in the North Santa Cruz Avenue
District at the corner of Santa Cruz Avenue and Highway 9 adjacent to Downtown Los Gatos on
an occupied commercial site (Los Gatos Shopping Center). Proximity to downtown Los Gatos
ensures that this site allows pedestrian access to urban services. This site is designated as
Community Commercial and zoned C-1, which would allow a maximum of 67 housing units
developed at a density of 30 du/ac.
Constraints: Existing commercial use would require demolition.
Figure D-12 shows an aerial view of the Los Gatos Shopping Center B-1 Site.
Figure D-12 Los Gatos Shopping Center (Site B-1)
Appendix D. Vacant and Available Sites
August 2022 Initial Draft 2023-2031 Housing Element D-11
Draft 2040 General Plan
D-12 Initial Draft 2023-2031 Housing Element August 2022
Site C-1 Los Gatos Lodge
Address: 50 Los Gatos Saratoga Road
Maximum Number of Housing Units: 352
“By Right” + 20% Affordable: Not Required – Not used in previous cycle
Description: The Los Gatos Lodge C-1 site is located in the Los Gatos Boulevard District
immediately adjacent to the interchange of Highway 9 and Highway 17, east of Downtown Los
Gatos. The site is the current location of the Los Gatos Lodge, with the Los Gatos High School
sports fields to the south, lower-density residential uses across Bella Vista Avenue to the east,
and Best Western Inn across Highway 9 on the north. This site is designated as Mixed-Use
Commercial and zoned CH:PD, which would allow a maximum of 352 housing units developed at
a density of 40 du/ac. The property owner has expressed interest in residential redevelopment of
the property.
Constraints: Existing commercial use would require demolition.
Figure D-12 shows an aerial view of the Los Gatos Lodge C-1 Site.
Figure D-12 Los Gatos Lodge (Site C-1)
Appendix D. Vacant and Available Sites
August 2022 Initial Draft 2023-2031 Housing Element D-13
Draft 2040 General Plan
D-14 Initial Draft 2023-2031 Housing Element August 2022
Site D-1 Ace Hardware
Address: 15300 Los Gatos Boulevard
Maximum Number of Housing Units: 64
“By Right” + 20% Affordable: Not Required – Not used in previous cycle
Description: The Ace Hardware D-1 site is located in the Los Gatos Boulevard District east of
Highway 17 and Downtown Los Gatos. The site is the current location of Ace Hardware, with
commercial uses to the north, south, and west, and lower-density residential uses to the east.
The site is designated as Mixed-Use Commercial and zoned C-1, which would accommodate a
maximum of 64 housing units developed at a density of 40 du/ac. The property owner has
expressed interest in residential redevelopment of the property.
Constraints: Existing commercial use would require demolition.
Figure D-12 shows an aerial view of the Ace Hardware D-1 Site.
Figure D-12 Ace Hardware (Site D-1)
Appendix D. Vacant and Available Sites
August 2022 Initial Draft 2023-2031 Housing Element D-15
Site D-4 Los Gatos Blvd.
Address: 15349, 15367, and 15405 Los Gatos Boulevard
Minimum Number of Housing Units: 115
“By Right” + 20% Affordable: Required – Not used in previous cycle
Description: The Los Gatos Blvd. D-4 site is located in the Los Gatos Boulevard District east of
Highway 17 and Downtown Los Gatos. The site is the current location of many commercial uses,
with commercial uses to the north, south, and east, and lower-density residential uses to the
west. The site is designated as Mixed-Use Commercial and zoned CH, which would
accommodate a maximum of 115 housing units developed at a density of 40 du/ac. The
property owner has expressed interest in residential redevelopment of the property.
Constraints: Existing commercial use would require demolition.
Figure D-12 shows an aerial view of the Los Gatos Boulevard D-4 Site.
Figure D-12 Los Gatos Boulevard (Site D-4)
Draft 2040 General Plan
D-16 Initial Draft 2023-2031 Housing Element August 2022
Site D-5 Los Gatos Boulevard
Address: 15425 Los Gatos Blvd.
Maximum Number of Housing Units: 44
“By Right” + 20% Affordable: Not Required – Not used in previous cycle
Description: The Los Gatos Boulevard D-5 site is located in the Los Gatos Boulevard District
east of Highway 17 and Downtown Los Gatos. The site is the current location of office and
commerical uses , with commercial uses located on all sides. The site is designated as Mixed-
Use Commercial and zoned CH, which would accommodate a maximum of 44 housing units
developed at a density of 40 du/ac. The property owner has expressed interest in residential
redevelopment of the property.
Constraints: Existing commercial use would require demolition.
Figure D-12 shows an aerial view of the Los Gatos Boulevard D-5 Site.
Figure D-12 Los Gatos Boulevard (Site D-5)
Appendix D. Vacant and Available Sites
August 2022 Initial Draft 2023-2031 Housing Element D-17
Site D-9 Nob Hill
Address: 16535 Camellia Terrace
Maximum Number of Housing Units: 134
“By Right” + 20% Affordable: Not Required – Not used in previous cycle
Description: The Nob Hill D-9 site is located in the Los Gatos Boulevard District east of Highway
17 and Downtown Los Gatos. The site is the current location of Nob Hill Foods with commercial
uses located to the north and east and lower-density residential uses located to the east and
south. The site is designated as Mixed-Use Commercial and zoned CH, which would
accommodate a maximum of 134 housing units developed at a density of 40 du/ac.
Constraints: Existing commercial use would require demolition.
Figure D-12 shows an aerial view of the Nob Hill D-9 Site.
Figure D-12 Nob Hill (Site D-9)
Draft 2040 General Plan
D-18 Initial Draft 2023-2031 Housing Element August 2022
Site D-16 Affordable Treasures
Address: 15795 Los Gatos Boulevard
Maximum Number of Housing Units: 26
“By Right” + 20% Affordable: Not Required – Not used in previous cycle
Description: The Affordable Treasures D-16 site is located in the Los Gatos Boulevard District
east of Highway 17 and Downtown Los Gatos. The site is the current location of Affordable
Treasures Party Store with commercial uses located to the north, south, and east and lower-
density residential uses located to the west. The site is designated as Mixed-Use Commercial
and zoned CH, which would accommodate a maximum of 26 housing units developed at a
density of 40 du/ac. The property owner has expressed interest in residential redevelopment of
the property.
Constraints: Existing commercial use would require demolition.
Figure D-12 shows an aerial view of the Affordable Treasures D-16 Site.
Figure D-12 Affordable Treasures (Site D-16)
Appendix D. Vacant and Available Sites
August 2022 Initial Draft 2023-2031 Housing Element D-19
Site D-26 Los Gatos Blvd.
Address: 16203 Los Gatos Boulevard
Maximum Number of Housing Units: 32
“By Right” + 20% Affordable: Not Required – Not used in previous cycle
Description: The Los Gatos Boulevard D-26 site is located in the Los Gatos Boulevard District
east of Highway 17 and Downtown Los Gatos. The site is the current location of NC Boardshop
skateboard shop and Autobahn Los Gatos, with commercial uses located to the north, east, and
west and medium-density residential uses located to the south. The site is designated as Mixed-
Use Commercial and zoned CH, which would accommodate a maximum of 32 housing units
developed at a density of 40 du/ac. The property owner has expressed interest in residential
redevelopment of the property.
Constraints: Existing commercial use would require demolition.
Figure D-12 shows an aerial view of the Los Gatos Boulevard D-26 Site.
Figure D-12 Los Gatos Boulevard (Site D-26)
Draft 2040 General Plan
D-20 Initial Draft 2023-2031 Housing Element August 2022
Site D-29 Los Gatos Boulevard
Address: 16492 Los Gatos Blvd.
Maximum Number of Housing Units: 12
“By Right” + 20% Affordable: Not Required – Not used in previous cycle
Description: The Los Gatos Boulevard D-29 site is located in the Los Gatos Boulevard District
east of Highway 17 and Downtown Los Gatos. The site is the current location of LG Wines and
Liquors and Happy Cleaners, with commercial uses located to the north, south, and west and
low-density residential uses located to the east. The site is designated as Neighborhood
Commercial and zoned C-1, which would accommodate a maximum of 12 housing units
developed at a density of 20 du/ac. The property owner has expressed interest in residential
redevelopment of the property. Constraints: Existing commercial use would require demolition.
Figure D-12 shows an aerial view of the Los Gatos Boulevard D-29 Site.
Figure D-12 Los Gatos Boulevard (Site D-29)
Appendix D. Vacant and Available Sites
August 2022 Initial Draft 2023-2031 Housing Element D-21
Draft 2040 General Plan
D-22 Initial Draft 2023-2031 Housing Element August 2022
Site E-1 North Forty Phase II
Address: 14859 Los Gatos Boulevard, et. al.
Maximum Number of Housing Units: 462
“By Right” + 20% Affordable: Required – Used in previous cycle
Description: The North Forty Phase II, E-1 site is located in the North Forty District along Los
Gatos Boulevard and adjacent to the Highway 17/Highway 85 interchange. The site contains
existing single-family residences and agriculture uses. Commercial uses are located to the south
and west and arterial highways located to the north and east. The site is designated and zoned
as North Forty Specific Plan, which would accommodate a maximum of 462 units at a density of
30 du/ac. The property owner has expressed interest in residential redevelopment of the property.
Constraints: Existing uses would require demolition; proximity to major arterial highways
Figure D-12 shows an aerial view of the North Forty Phase II E-1 Site.
Figure D-12 North Forty Phase II (Site E-1)
Appendix D. Vacant and Available Sites
August 2022 Initial Draft 2023-2031 Housing Element D-23
Site E-2 North Forty Phase II
Address: 16245 Burton Road
Maximum Number of Housing Units: 38
“By Right” + 20% Affordable: Required – Used in previous cycle
Description: The North Forty Phase II E-2 site is located in the North Forty District immediately
adjacent to the Highway 17/Highway 85 interchange. The site is underutilized with a single-family
residence and open space uses. Commercial uses are located to the west and arterial highways
located to the north and east. The site is designated and zoned as North Forty Specific Plan,
which would accommodate a maximum 38 housing units developed at a density of 30 du/ac.
Constraints: Existing uses would require demolition; proximity to major arterial highways
Figure D-12 shows an aerial view of the North Forty Phase IIE-2 Site.
Figure D-12 North Forty Phase II (Site E-2)
Draft 2040 General Plan
D-24 Initial Draft 2023-2031 Housing Element August 2022
Site E-3 North Forty (Phase II)
Address: 16240 Burton Road.
Maximum Number of Housing Units: 8
“By Right” + 20% Affordable: Required – Used in previous cycle
Description: The North Forty (Phase II) E-3 site is located in the North Forty District along Burton
Road and adjacent to the Highway 17/Highway 85 interchange. The site contains a single-family
residence. Other North Forty Specific Plan properties surround the site. The site is designated
as North Forty Specific Plan, which would accommodate a maximum of eight (8) housing units
developed at a density of 30 du/ac.
Constraints: Existing uses would require demolition; proximity to major arterial highways
Figure D-12 shows an aerial view of the North Forty Phase II E-3 Site.
Figure D-12 North Forty Phase II (Site E-3)
Appendix D. Vacant and Available Sites
August 2022 Initial Draft 2023-2031 Housing Element D-25
Site E-4 North Forty Phase II
Address: 16270 Burton Road
Maximum Number of Housing Units: 13
“By Right” + 20% Affordable: Required – Used in previous cycle
Description: The North Forty Phase II E-4 site is located in the North Forty District at the end of
Burton Road and immediately adjacent to the Highway 17/Highway 85 interchange. The site
contains a single-family residence and open space uses. Other North Forty Specific Plan
properties surround the site. The site is designated as North Forty Specific Plan, which would
accommodate a maximum of 13 housing units developed at a density of 30 du/ac.
Constraints: Existing uses would require demolition; proximity to major arterial highways
Figure D-12 shows an aerial view of the North Forty Phase II E-4 Site.
Figure D-12 North Forty Phase II (Site E-4)
Draft 2040 General Plan
D-26 Initial Draft 2023-2031 Housing Element August 2022
Site E-5 North Forty Phase II
Address: 16210 Burton Road
Minimum Number of Housing Units: 25
“By Right” + 20% Affordable: Required – Used in previous cycle
Description: The North Forty Phase II E-5 site is located in the North Forty District along Burton
Road and adjacent to the Highway 17/Highway 85 interchange. The site contains single-family
residences. Other North Forty Specific Plan properties surround the site. The site is designated
as North Forty Specific Plan, which would accommodate a maximum of 25 housing units
developed at a density of 30 du/ac.
Constraints: Existing uses would require demolition; proximity to major arterial highways
Figure D-12 shows an aerial view of the North Forty Phase II E-5 Site.
Figure D-12 North Forty Phase II (Site E-5)
Appendix D. Vacant and Available Sites
August 2022 Initial Draft 2023-2031 Housing Element D-27
Site E-6 North Forty Phase II
Address: 14849 Los Gatos Boulevard
Minimum Number of Housing Units: 28
“By Right” + 20% Affordable: Required – Used in previous cycle
Description: The North Forty Phase II E-6 site is located in the North Forty District along Los
Gatos Boulevard and adjacent to the Highway 17/Highway 85 interchange. The site contains a
single-family residence and open space uses. Other North Forty Specific Plan properties
surround the site on the north, south, and west. East of the site, across Los Gatos Boulevard,
there are commercial uses. The site is designated as North Forty Specific Plan, which would
accommodate a maximum of 28 housing units developed at a density of 30 du/ac.
Constraints: Existing uses would require demolition; proximity to major arterial highways
Figure D-12 shows an aerial view of the North Forty Phase II E-6 Site.
Figure D-12 North Forty Phase II (Site E-6)
Draft 2040 General Plan
D-28 Initial Draft 2023-2031 Housing Element August 2022
Site E-7 North Forty Phase II
Address: 14823 Los Gatos Boulevard
Maximum Number of Housing Units: 11
“By Right” + 20% Affordable: Required – Used in previous cycle
Description: The North Forty Phase II E-7 site is located in the North Forty District at the
intersection of Burton Road and Los Gatos Boulevard and adjacent to the Highway 17/Highway
85 interchange. The site contains a single-family residence. Other North Forty Specific Plan
properties surround the site on the south and west. North of the site, across Burton Road, are
commercial uses, and east of the site, across Los Gatos Boulevard, there are commercial uses.
The site is designated as North Forty Specific Plan, which would accommodate a maximum of 11
housing units developed at a density of 30 du/ac.
Constraints: Existing uses would require demolition; proximity to major arterial highways
Figure D-12 shows an aerial view of the North Forty Phase II E-7 Site.
Figure D-12 North Forty Phase II (Site E-7)
Appendix D. Vacant and Available Sites
August 2022 Initial Draft 2023-2031 Housing Element D-29
Draft 2040 General Plan
D-30 Initial Draft 2023-2031 Housing Element August 2022
Site F-1 Oka Road
Address: Oka Road
Maximum Number of Housing Units: 185
“By Right” + 20% Affordable: Required – Used in previous cycle
Description: The Oak Road F-1 site is located in the Lark Avenue District south and west of the
Highway 17/Highway 85 interchange. The site contains residential and agricultural uses. Major
arterial highways are located north and east of the site. Agricultural and commercial uses are
located across Oka Road. The site is designated as Low-Density Residential and Medium-
Density Residential. Parcels within the site are zoned R-1-8 and R-M:5-12, which would allow a
maximum of 185 housing units developed at a density of of 5 du/ac for parcels designated as
Low-Density Residential and at a density of 22 du/ac for parcels designated as Medium-Density
Residential.
Constraints: Proximity to major arterial highways
Figure D-12 shows an aerial view of the Lark Avenue F-1 Site.
Figure D-12 Lark Avenue (Site F-1)
Appendix D. Vacant and Available Sites
August 2022 Initial Draft 2023-2031 Housing Element D-31
Site F-2 Oka Lane
Address: Oka Lane
Maximum Number of Housing Units: 32
“By Right” + 20% Affordable: Required – Used in previous cycle
Description: The Oka Lane F-2 site is located in the Lark Avenue District south and west of the
Highway 17/Highway 85 interchange. The site contains agricultural uses. Major arterial
highways are located north and east of the site. Agricultural and commercial uses are located
across Oka Road. The site is designated as Low-Density Residential. The site is zoned R-1:8,
which would allow a maximum of 32 housing units developed at a density of 5 du/ac
Constraints: Proximity to major arterial highways
Figure D-12 shows an aerial view of the Oka Lane F-2 Site.
Figure D-12 Oka Lane (Site F-2)
Draft 2040 General Plan
D-32 Initial Draft 2023-2031 Housing Element August 2022
Site F-3 Caltrans Right of Way
Address: Caltrans Right of Way
Maximum Number of Housing Units: 108
“By Right” + 20% Affordable: Not Required – Not used in previous cycle
Description: The Caltrans Right of Way F-3 site is located in the Lark Avenue District south and
west of the Highway 17/Highway 85 interchange. The site contains open space uses. Major
arterial highways are located north and east of the site. Commercial uses are located west of the
site across Oka Road, and a mobile home park is located immediately south of the site. Should
the site be annexed by the Town, it could be designated as Medium-Density Residential and
zoned as R-M:5-12, which would accommodate a maximum of 108 housing units developed at a
density of 22 du/ac.
Constraints: Proximity to major arterial highways
Figure D-12 shows an aerial view of the Caltrans Right of Way F-3 Site.
Figure D-12 Caltrans Right of Way (Site F-3)
Appendix D. Vacant and Available Sites
August 2022 Initial Draft 2023-2031 Housing Element D-33
Draft 2040 General Plan
D-34 Initial Draft 2023-2031 Housing Element August 2022
Site G-1 Knowles Drive
Address: 110 Knowles Drive
Maximum Number of Housing Units: 294
“By Right” + 20% Affordable: Required – Used in previous cycle
Description: The Knowles Drive G-1 site is located in the Winchester Boulevard District north
and west of the Highway 17/Highway 85 interchange. The site contains industrial uses. Los
Gatos Creek is immediately south and east of the site, with low-density residential uses located
beyond. High-density residential uses are located south and west of the site.
Commercial/industrial uses are located north of the site across Knowles Drive. The site is
designated as High-Density Residential and zoned CM:AHOZ, which would accommodate a
maximum of 294 housing units developed at a density of 40 du/ac.
Constraints: Proximity to Los Gatos Creek
Figure D-12 shows an aerial view of the Knowles Drive G-1 Site.
Figure D-12 Knowles Drive (Site G-1)
Appendix D. Vacant and Available Sites
August 2022 Initial Draft 2023-2031 Housing Element D-35
Site G-3 Winchester Boulevard
Address: 206 Knowles Drive
Maximum Number of Housing Units: 96
“By Right” + 20% Affordable: Not Required – Not used in previous cycle
Description: The Winchester Boulevard G-3 site is located in the Winchester Boulevard District
north and west of the Highway 17/Highway 85 interchange. The site contains office uses. High-
density residential and office uses are located south and west of the site. Office uses are located
north of the site across Knowles Drive. The site is designated as High-Density Residential and
zoned CM, which would accommodate a maximum of 96 housing units developed at a density of
40 du/ac.
Constraints: None
Figure D-12 shows an aerial view of the Winchester Boulevard G-3 Site.
Figure D-12 Winchester Boulevard (Site G-3)
Draft 2040 General Plan
D-36 Initial Draft 2023-2031 Housing Element August 2022
Appendix D. Vacant and Available Sites
August 2022 Initial Draft 2023-2031 Housing Element D-37
Site I-1 Los Gatos Almaden Road
Address: 440 Los Gatos Almaden Road
Maximum Number of Housing Units: 16
“By Right” + 20% Affordable: Not Required – Not used in previous cycle
Description: The Los Gatos Almaden Road I-1 site is located in the Union Avenue District, along
the Los Gatos/Almaden Road. The site contains a gas station and commercial building. Low-
density residential are located north, south, and west of the site. Leigh High School is located
east of the site across Leigh Avenue. The site is designated as Neighborhood Commercial and
zoned C-1, which would accommodate a maximum of 16 housing units developed at a density of
20 du/ac. The property owner has expressed interest in residential redevelopment of the
property.
Constraints: Former gas station
Figure D-12 shows an aerial view of the Los Gatos Almaden Road I-1 Site.
Figure D-12 Los Gatos Almaden Road (Site I-1)
Draft 2040 General Plan
D-38 Initial Draft 2023-2031 Housing Element August 2022
Appendix D. Vacant and Available Sites
August 2022 Initial Draft 2023-2031 Housing Element D-39
Site J-1 Valero
Address: 14000 Blossom Hill Road
Maximum Number of Housing Units: 14
“By Right” + 20% Affordable: Not Required – Not used in previous cycle
Description: The Valero J-1 site is located in the Harwood Road District, along the Blossom Hill
Road. The site contains a gas station. Low-density residential are located north, south, and east
of the site. Commercial uses are located immediately west of the site. The site is designated as
Neighborhood Commercial and zoned C-1, which would accommodate a maximum of 14 housing
units developed at a density of 20 du/ac.
Constraints: Former gas station
Figure D-12 shows an aerial view of the Valero J-1 Site.
Figure D-12 Valero (Site J-1)
Draft 2040 General Plan
D-40 Initial Draft 2023-2031 Housing Element August 2022
Accessory Dwelling Units (ADUs and Junior ADUs)
Address: Various Locations
Minimum Number of Housing Units: 200
“By Right” + 20% Affordable: Not required – Instead, formula exists for projecting the next 8-
year cycle, along with assumption of 30 percent, 30 percent, 30 percent, 10 percent affordability
with categories.
Description: Secondary units according to ADU Ordinance
Constraints: To have HCD consider more than 200 units as a reasonable expectation for
construction in this eight-year cycle, either relaxation of current ordinance and/or property owner
declared interest in excess of the projected number of units (200).
Title – TBD Secondary Units with SB-9 (Duplexes, Lot splits)
Address: Various Locations
Minimum Number of Housing Units: Dependent on Property Owner Interest
“By Right” + 20% Affordable: Not required – Not used in previous cycle
Description: Secondary units according to the SB-9 Ordinance
Constraints: To have HCD consider SB-9 units as a reasonable expectation for construction in
this eight-year cycle, either relaxation of current ordinance and/or property owner declared
interest is necessary.
Inventory of Vacant/Partially Vacant and Available Sites
This section provides the formal inventory of sites that the Town of Los Gatos will rely on in the 6th Housing
Element planning cycle. Per state law and Housing Policy, the Town is required to maintain “no net loss” of the
housing capacity represented by this list of parcels and the sites they comprise. To facilitate this, the inventory
presented below has been designed with excess capacity.2 This allows some degree of flexibility in decision
making for individual development projects as they come forward for approval by Town Council.
In short, with some limited flexibility, the Town is committed to permitting housing on each of the parcels listed in
the table below, and in so doing ensuring that the number of units listed for each parcel in the table—"planned
capacity”—is achieved. Should the Town approve development that is inconsistent with the parcel’s planned
capacity, it is then required as part of that approval to:
1. Find, based on quantitative evidence, that the remaining inventory of housing sites is still sufficient to
meet the Town’s 6th cycle RHNA, or
2. Identify one or more available sites with the realistic development capacity to replace the housing that
would have otherwise been developed had consistency with planned capacity been achieved.
Table D-3 provides details and capacity estimates for each of the parcels that comprise the housing sites
identified in the section above.
2 Excess capacity is primarily comprised of the development potential created by SB9, which allows owners of a single-
family property to divide their property into two parcels. Each of these parcels would then have the capacity for three units
each—the main residence, plus and ADU and a Junior ADU.
Appendix D. Vacant and Available Sites
August 2022 Draft 2040 General Plan D-41
Table D-3 Vacant/Partially Vacant and Available Sites
Site # Address APN 2040 General Plan Zoning
Parcel Size (Gross
Acres)
Density du/ac Draft 2040
GP
Very Low-Income
Capacity
Low-
Income Capacity
Moderate-
Income Capacity
Above Moderate-Income
Capacity
Total
A - Downtown Area
A-2
50 Park Ave. 52901040 High Density Residential –
VHFHSZ R-1D 0.18
12
10 9
61 Montebello Way 52901041 High Density Residential –
VHFHSZ R-1D 0.69
A-3 101 S. Santa Cruz Ave. 52901022 Central Business District C-2 0.80 30 24 24
A-7 165 Los Gatos Saratoga Rd. 52904083 Central Business District C-2 0.37 30 11 11
B - North Santa Cruz Avenue Area
B-1
404 N. Santa Cruz Ave. 52907099 Community Commercial C-1 0.84
30 17 10 10 30 67 52907003 Community Commercial C-1 0.25
430 N. Santa Cruz Ave. 52907004 Community Commercial C-1 0.22
432 N. Santa Cruz Ave. 52907094 Community Commercial C-1 0.93
C - Los Gatos Lodge Area
C-1
50 Los Gatos Saratoga Rd. 52924032 Mixed Use Commercial CH:PD 7.04
40 176 88 88
352 52924001 Mixed Use Commercial CH:PD 1.49
52924003 Mixed Use Commercial CH:PD 0.28
D - Los Gatos Boulevard Area
D-1 15300 Los Gatos Blvd. 42417036 Mixed Use Commercial C-1 1.60 40 32 16 16 64
D-4
15349 Los Gatos Blvd. 42419049 Mixed Use Commercial CH 0.34
40 57 29 29 115 15367 Los Gatos Blvd. 42419048 Mixed Use Commercial CH 1.20
15405 Los Gatos Blvd. 42419069 Mixed Use Commercial CH 1.34
D-5 15425 Los Gatos Blvd. 42419067 Mixed Use Commercial CH 1.09 40 22 11 11 44
D-9 Los Gatos Blvd. 52302005 Mixed Use Commercial C-1 0.53 40 68 33 33 134 16535 Camellia Ter. 52302006 Mixed Use Commercial C-1 2.81
Appendix D. Vacant and Available Sites
10-42 Initial Draft 2023-2031 Housing Element August 2022
Site # Address APN 2040 General Plan Zoning
Parcel
Size (Gross Acres)
Density
du/ac Draft 2040 GP
Very
Low-Income Capacity
Low-Income
Capacity
Moderate-Income
Capacity
Above
Moderate-Income Capacity
Total
D-16 15795 Los Gatos Blvd. 52915059 Mixed Use Commercial CH 0.64 40 14 6 6 26
D-26 16203 Los Gatos Blvd. 52916069 Mixed Use Commercial CH 0.79 40 16 8 8 32
D-29 16492 Los Gatos Blvd. 53207086 Neighborhood Commercial C-1 0.23 20 12 12 53207085 Neighborhood Commercial C-1 0.38
E - North Forty Area
E-1
14859 Los Gatos Blvd. 42407094 North Forty Specific Plan N-40 2.90
13 77 46 46 139 308
16392 Los Gatos Blvd. 42407095 North Forty Specific Plan N-40 0.78
16260 Burton Rd. 42407053 North Forty Specific Plan N-40 0.44
16250 Burton Rd. 42407009 North Forty Specific Plan N-40 0.44
14917 Los Gatos Blvd. 42407081 North Forty Specific Plan N-40 3.74
14925 Los Gatos Blvd. 42407115 North Forty Specific Plan N-40 6.07
42407116 North Forty Specific Plan N-40 1.02
E-2 16245 Burton Rd. 42406115 North Forty Specific Plan N-40 1.17 20 26 26 42406116 North Forty Specific Plan N-40 0.11
E-3 16240 Burton Rd. 42407010 North Forty Specific Plan N-40 0.26 20 5 5
E-4 16270 Burton Rd. 42407052 North Forty Specific Plan N-40 0.43 20 9 9
E-5 16210 Burton Rd. 42407054 North Forty Specific Plan N-40 0.26 20 16 16 14831 Los Gatos Blvd 42407063 North Forty Specific Plan N-40 0.56
E-6 14849 Los Gatos Blvd. 42407064 North Forty Specific Plan N-40 0.93 20 19 19
E-7 14823 Los Gatos Blvd. 42407065 North Forty Specific Plan N-40 0.37 20 7 7
Appendix D. Vacant and Available Sites
August 2022 Initial Draft 2023-2031 Housing Element 10-43
Site # Address APN 2040 General Plan Zoning
Parcel
Size (Gross Acres)
Density
du/ac Draft 2040 GP
Very
Low-Income Capacity
Low-Income
Capacity
Moderate-Income
Capacity
Above
Moderate-Income Capacity
Total
F - Lark Avenue Area
F-1
Oka Rd. 42408057 Low Density Residential R-1:8 2.97
5
93 46 46 185
42408029 Low Density Residential R-1:8 0.31
42408059 Low Density Residential R-1:8 1.01
42408060 Low Density Residential R-1:8 1.29
42408058 Low Density Residential R-1:8 1.41
42408017 High Density Residential R-M:5-12 2.48 22 42408021 High Density Residential R-M:5-12 4.32
F-2 Oka Ln. 42408074 Low Density Residential R-1:8 6.41 5 16 8 8 32
F-3 Cal Trans Parcel N/A High Density Residential
Program to
Rezone to
RM:5-12
4.90 22 54 27 27 108
G- Winchester Boulevard Area
G-1 110 Knowles Dr. 42432077 High Density Residential CM:AHOZ 7.34 40 59 59 88 88 294
G-3 206 Knowles Dr. 42432076 High Density Residential CM 2.41 40 48 24 24 96
I - Union Avenue Area
I-1 440 Los Gatos Almaden Rd. 52749048 Neighborhood Commercial C-1 0.52 20
16 16 445 Leigh Ave. 52749049 Neighborhood Commercial C-1 0.29
J - Harwood Road Area
J-1 14000 Blossom Hill Rd. 52732028 Neighborhood Commercial C-1 0.69 20 14 14
Subtotal
659 377 403 767 2,206
ADUs 20 60 60 60 200
Appendix D. Vacant and Available Sites
10-44 Initial Draft 2023-2031 Housing Element August 2022
Site # Address APN 2040 General Plan Zoning
Parcel
Size (Gross Acres)
Density
du/ac Draft 2040 GP
Very
Low-Income Capacity
Low-Income
Capacity
Moderate-Income
Capacity
Above
Moderate-Income Capacity
Total
Pipeline Projects 3 176 179
TOTAL 679 437 436 827 2,406
RHNA Requirements 537 310 320 826 1,993
Buffer (15 percent) 81 46 48 124 299
RHNA + Buffer Total 618 356 368 950 2,292
Difference 61 81 95 -123 114
SOURCE: Town of Los Gatos; EMC Planning Group Inc.
Appendix D. Vacant and Available Sites
August 2022 Initial Draft 2023-2031 Housing Element D-45
D . 4 Summary and Conclusions
The vacant, partially vacant, and underutilized sites identified in this report are sufficient to accommodate
approximately 121 percent of the Los Gatos’s Regional Housing Needs Allocation for the 6th cycle planning
period. This number accommodates the recommended buffer of 15 percent above RHNA, which would equal
capacity of approximately 299 additional units. This “cushion” for capacity above the base RHNA number is
highly recommended because of the state’s no-net-loss policy, which precludes jurisdictions from approving
development that results in an overall housing site deficit. The “cushion” essentially provides a degree of
flexibility for policy makers as they make development decisions. Many of the sites identified in this report have
existing uses that would need to be demolished before new housing could be constructed.
For communities like Los Gatos that are largely built out and surrounded on all sides by other communities,
redevelopment and densification is the only practical solution to providing a fair share of future housing for the
San Francisco Bay Area. By its nature, such redevelopment is more costly and more time consuming than
building new units on vacant land. To offset these constraints, modestly higher densities are proposed in some
areas. These higher densities act as a market incentive to offset the added cost and time required build new
housing on redeveloped sites. Property owner interest will be pivotal for facilitating single-family site opportunities
to policies to add housing through Senate Bill 9 (SB 9), which allows for up to four units on a property zoned for a
single house.
Review of Previous Housing Element E
APPENDIX
August 2022 Draft 2023-2031 Housing Element E-1
E.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.
Appropriateness in Goals, Objectives, and Policies.
E.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 programs. 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 with State housing law guidelines.
E.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.
Initial Draft 2023-2031 Housing Element
August 2022 Draft 2023-2031 Housing Element E-2
Preservation of “At Risk” Units.
Rehabilitation of Existing Units.
Each of these areas is discussed in detail below.
Overview of Adopted Programs
Table E-1 below 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 to2023 planning period.
Initial Draft 2023-2031 Housing Element
August 2022 Appendix E E-3
Table E-1 Overview of Adopted Programs
No.
Programs
[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
Goal
HOU-1
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. Modify
Policy
HOU-1.1 Develop and utilize all available housing funding resources in order to provide the maximum amount of affordable housing as feasible. Modify
Policy
HOU-1.2 Work with nonprofit agencies and housing developers to plan and develop a mix of affordable housing opportunities in Los Gatos. Modify
Actions
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. Modify
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. Modify
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. Modify
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. Modify
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. Modify
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. Modify
Initial Draft 2023-2031 Housing Element
August 2022 Appendix E E-4
No.
Programs
[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
1.7
The Town will rezone 13.5 acres within the North 40 Specific Plan area within three
years of Housing Element adoption at minimum a density of 20 dwelling units per
acre to facilitate affordable housing production.
Complete Delete
1.8
To assist the development of housing for lower income households on sites larger
than ten acres, the Town will facilitate land divisions and lot line adjustments to
result in parcels sizes between one to ten acres that facilitate multiple-family
developments affordable to lower income households in light of state, federal and
local financing programs.
Projects are given priority. Continue
Goal
HOU-2
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. Modify
Policy
HOU-2.1
Continue to designate sufficient, residentially zoned land at appropriate densities to provide adequate sites to accommodate Los
Gatos’s RHNA for 2015–2023. Continue
Policy
HOU-2.2
Ensure that the Town will provide sufficient land at appropriate zoning categories to meet its RHNA for very low-, and moderate-
income households, as demonstrated in the Housing Sites Inventory analysis in Chapter 6 of the Housing Element Technical Appendix. Modify
Policy
HOU-2.3
Encourage mixed–use developments that provide affordable housing close to employment centers and/or transportation facilities,
particularly along Los Gatos Boulevard and within a ½-mile radius of the future Vasona light rail station. Modify
Policy
HOU-2.4
Demonstrate that all new residential development is sufficiently served by public services and facilities, including pedestrian and
vehicular circulation, water and wastewater services, police, fire, schools, and parks. Continue
Policy
HOU-2.5 New single-family, multi-family, and mixed-use developments shall be compatible with the character of the surrounding neighborhood. Modify
Policy
HOU-2.6 Strive to ensure that at least 30 percent of the housing stock is rental units. Modify
Policy
HOU-2.7 Create new affordable housing opportunities through acquisition using Affordable Housing Funds. Delete
Actions
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. Modify
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. Modify
Appendix E. Review of Previous Housing Element
August 2022 Appendix E E-5
No.
Programs
[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
2.3 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. 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.
Modify
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. Modify
Goal
HOU-3 Preserve existing residential opportunities, including the existing affordable housing stock. Modify
Policy
HOU-3.1 Encourage the maintenance and improvement of existing housing units. Modify
Policy
HOU-3.2
Support the preservation and conservation of existing housing units that provide affordable housing opportunities for Town residents
and workers. Modify
Policy
HOU-3.3 Improve the quality of rental housing by acquisition and/or rehabilitation using Affordable Housing Fund. Modify
Policy
HOU-3.4
Preserve the affordability of units affordable to very low-, low-, and moderate-income households in Bonnie View Park, and enforce
zoning regulations regarding conversion of mobile home parks in Los Gatos. Continue
Actions
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 goals 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
Initial Draft 2023-2031 Housing Element
August 2022 Appendix E E-6
No.
Programs
[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
Goal
HOU-4 Ensure that all persons have equal access to housing opportunities.
Policy
HOU-4.1 Support housing programs that protect individuals’ rights. Modify
Policy
HOU-4.2
Continue to provide assistance to service providers who support special needs households such as seniors, persons with disabilities
(including developmental challenges), and the homeless, such as Project Sentinel, Santa Clara County Housing Authority, and Santa
Clara County Office of Supportive Housing.
Modify
Policy
HOU-4.3
Continue to encourage Los Gatos households to participate in financial assistance programs provided in the County of Santa Clara. Continue
Actions
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. Modify
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. Delete
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
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. Modify
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. Modify
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
Appendix E. Review of Previous Housing Element
August 2022 Appendix E E-7
No.
Programs
[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
4.8 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. Delete
Goal
HOU-5 Retain and expand affordable housing opportunities for seniors. Modify
Policy
HOU-5.1 Promote the Town’s Housing Conservation Program to assist low-income seniors with basic home repairs and maintenance. Modify
Policy
HOU-5.2
Allow and encourage small-scale living facilities of two to six seniors that may include nursing care services that can be integrated into
existing neighborhoods as infill development. Delete
Policy
HOU-5.3
Work with existing senior lifestyle living and assisted living facilities in Los Gatos, and support the development of new senior housing
that includes continuum of care facilities within the Town. Modify
Actions
5.1 Provide regularly updated senior housing resource materials at the Adult
Recreation Center.
Senior resource materials are updated when
necessary. Modify
Goal
HOU-6 Mitigate Town governmental constraints to affordable and special needs housing development. Modify
Policy
HOU-6.1 Continue expediting the permit processing system for affordable residential development applications. Modify
Policy
HOU-6.2 Encourage universal design features in all new residential developments, to supplement the Title 24 requirements. Modify
Policy
HOU-6.3 Support the rehabilitation and modification of housing to allow accessible to people of all abilities. Modify
Policy
HOU-6.4
Support the provision of permanent, affordable, and accessible housing that allows persons with special needs to live independent
lives. For the purposes of this Housing Element “persons with special needs” include extremely low-income households, the elderly,
overcrowded and large-family households, the homeless population, those in need of emergency shelter, youth aging out of foster
care, female-headed or single-parent households, and persons with disabilities, including developmental challenges.
Continue
Initial Draft 2023-2031 Housing Element
August 2022 Appendix E E-8
No.
Programs
[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
Policy
HOU-6.5 Support efforts to provide coordinated services for persons with special needs in the Town. Modify
Actions
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. Modify
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. Modify
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. Modify
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. Modify
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. Modify
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.
Delete
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. Delete
Appendix E. Review of Previous Housing Element
August 2022 Appendix E E-9
No.
Programs
[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
6.9
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. Modify
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. Delete
Goal
HOU-7 Encourage residential construction that promotes green building and energy conservation practices. Modify
Policy
HOU-7.1
Encourage sustainable housing development throughout the Town using the Town’s voluntary green building program by continuing to
require that all residential development applications complete the Build It Green GreenPoint Rated Checklist as part of the
development application package.
Modify
Policy
HOU-7.2 Promote the construction of energy efficient new homes utilizing the Energy Star Homes Program. Delete
7.1
Continue to enforce State of California Title 24 requirements for energy
conservation.
The Town enforces Title 24 requirements. Continue
Goal
HOU-8 Ensure that the Town has sufficient resources and takes appropriate measures to implement the Housing Element. Modify
Policy
HOU-8.1
All approvals of residential developments of three or more units shall include a finding that the proposed development is consistent
with the Town’s Housing Element and addresses the Town’s housing needs as identified in the Housing Element. Delete
Policy
HOU-8.2 Provide adequate management and staffing of affordable housing funds and programs. 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
Initial Draft 2023-2031 Housing Element
August 2022 Appendix E E-10
No.
Programs
[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
8.2 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.
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.
Modify
Initial Draft 2023-2031 Housing Element
August 2022 Appendix E E-11
Production of Housing
The 2015 Housing Element identified a Regional Housing Needs Allocation (RHNA) 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.
174 units affordable to above moderate-income households.
As shown in Table A5-2, during the 2015–2023 planning period, 511 new units were added to the Town’s housing
stock, achieving approximately 83 percent of the Town’s RHNA. 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, January 1, 2015 to June 30, 2023
Affordability
New Construction
Need
Housing Units
Produced Percent Achieved
Extremely Low 100 0 *
Very Low 101 49 24.4%
Low 112 3 2.7%
Moderate 132 120 90.9%
Above Moderate 174 339 194.8%
Total 619 511 82.5%
SOURCE: HCD Annual Progress Report Dashboard (as of August 5, 2022).
NOTE: This table and text 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 to 2023 planning period.
Rehabilitation of Existing Units
The Town did not rehabilitate any housing units between 2015 and 2023.
E.4 Appropriateness of Goals, Objectives, and Policies
The goals, objectives, and policies identified in the 2015 Housing Element were appropriate for the 2015 to2023
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 62 percent and 80 percent of the
needed units, respectively. The Town permitted only about a quarter of its needed Very Low-Income units and
less than three percent of its Low-Income units. As was the case in the in prior years, the cost of housing
Draft 2040 General Plan
August 2022 Appendix E E-12
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 housing through a
continuation of its BMP program and enhanced Accessory Dwelling Unit Ordinance.
E.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 (Table H-3 on page 47 of
the 2015 Housing Element), the Town permitted 511 units (approximately 81 percent), most of them for Above
Moderate-Income households.
Nonetheless, the goals, objectives, policies, and actions in the 2015 to2023 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 to2031 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.
List of Organizations Contacted F
APPENDIX
August 2022 Appendix F F-1
F.1 List of Organizations Contacted
1 Native American Heritage Commission Tribal Consultation List Santa Clara County
07/22/2020
1 Amah Mutsun Tribal Band
Valentin Lopez, Chairperson
P.O. Box 5272
Galt, CA 95632
Phone number (916) 743-5833
vlopez@amahmutsun.org
2 Amah Mutsun Tribal Band of Mission San Juan Bautista
Irenne Zwierlein, Chairperson
789 Canada Road
Woodside, CA 94062
Phone: (650) 851-7489
Fax: (650) 332-1526
amahmutsuntribal@gmail.com
3 Indian Canyon Mutsun Band of Costanoan
Ann Marie Sayers, Chairperson
P.O. Box 28
Hollister, CA 95024
Phone number (831) 637-4238
ams@indiancanyon.org
4 Muwekma Ohlone Indian Tribe of the SF Bay Area
Charlene Mijmeh, Chairperson
20885 Redwood Road, Suite 232
Castro Valley, CA 94546
Phone: (408) 464-2892
cnijmeh@muwekma.org
5 Muwekma Ohlone Indian Tribe of the SF Bay Area
Monica Arellano
20885 Redwood Road, Suite 232
Castro Valley, CA 94546
marellano@muwekma.org
6 North Valley Yokuts Tribe
Timothy Perez, MLD Contact
P.O. Box 717
Linden, CA 95236
Phone: (209) 662-2788
huskanam@gmail.com
Initial Draft 2023-2031 Housing Element
F-2 Appendix F August 2022
7 North Valley Yokuts Tribe
Katherine Perez, Chairperson
P.O. Box 717
Linden, CA 95236
Phone: (209) 887-3415
canutes@verizon.net
8 The Ohlone Indian Tribe
Andres Galvan
P.O. Box 3388
Fremont, CA 94539
Phone: (510) 882-0527
Fax: (510) 687-9393
chochenyo@aol.com
9 The Confederated Villages of Lisjan
Corrina Gould, Chairperson
10926 Edes Avenue
Oakland, CA 94603
Phone: (510) 882-027
cvltribe@gmail.com
2 Additional List of Contacted Organizations
1 Association of Bay Area Governments
Bay Area Metro Center
375 Beale Street, Suite 700
San Francisco, CA 94105
housingTA@BayAreaMetro.gov
(415) 820-7900
2 Aleli Sangalang
Deputy Executive Director of Housing
Santa Clara County Housing Authortiy
505 W Julian Street
San Jose, CA 95110
(408) 275-8870
3 Santa Clara County Social Services Agency
353 West Julian Street
San Jose, CA 95110
clientcomments@ssa.sccgov.org
(408) 755-7100
4 African American Community Service Agency
304 N. 6th Street
San Jose, CA 95112
info@sjaacsa.org
(408) 292-3157
Appendix F. List of Contacted Organizations
August 2022 Appendix F F-3
5 Susan Alexander Kim
Secretary
Korean American Community Services
1800-B Fruitdale Avenue
San Jose, CA 95128
info@kacssv.org
(408) 920-9733
6 Lindsey Caldwell
Division Director of Emergency Programs and Housing Services
Catholic Charaties of Santa Clara County
2625 Zanker Road
San Jose, CA 95134-2107
info@Catholiccharitiesscc.org
7 Pancho Guevara
Executive Director
Sacred Heart Community Service
1381 South First Street
San Jose, CA 95110
(408) 278-2160
8 Pancho Guevara
Executive Director
Sacred Heart Community Service
1381 South First Street
San Jose, CA 95110
(408) 283-3700
9 Bay Area Legal Aid
4, N 2nd St. # 600
San Jose, CA 95113
(408) 283-3700
10 United Way Bay Area
1400 Parkmoor Avenue
San Jose, Ca 95126
(408) 345-4300
Initial Draft 2023-2031 Housing Element
F-4 Appendix F August 2022
3 Engage Los Gatos Housing
Appendix F. List of Contacted Organizations
August 2022 Appendix F F-5
Initial Draft 2023-2031 Housing Element
F-6 Appendix F August 2022
Appendix F. List of Contacted Organizations
August 2022 Appendix F F-7
Initial Draft 2023-2031 Housing Element
F-8 Appendix F August 2022
AFFH Segregation Report Los Gatos G
APPENDIX
1
AFFH SEGREGATION REPORT: LOS
GATOS
UC Merced Urban Policy Lab and ABAG/MTC Staff
Version of Record: March 06, 15:57:57
2
0.1 Table of content
0.1 Table of content .................................................................................................... 2
0.2 List of figures ....................................................................................................... 3
0.3 List of tables ........................................................................................................ 3
1 Introduction .............................................................................................................. 4
1.1 Purpose of this Report ............................................................................................. 4
1.2 Defining Segregation ............................................................................................... 5
1.3 Segregation Patterns in the Bay Area ........................................................................... 5
1.4 Segregation and Land Use ......................................................................................... 6
2 Racial Segregation in Town of Los Gatos ........................................................................... 8
2.1 Neighborhood Level Racial Segregation (within Town of Los Gatos) ...................................... 8
2.2 Regional Racial Segregation (between Los Gatos and other jurisdictions) .............................. 16
3 Income Segregation in Town of Los Gatos ........................................................................ 21
3.1 Neighborhood Level Income Segregation (within Los Gatos) ............................................... 21
3.2 Regional Income Segregation (between Los Gatos and other jurisdictions) ............................. 27
4 Appendix 1: Summary of Findings ................................................................................. 31
4.1 Segregation in Town of Los Gatos .............................................................................. 31
4.2 Segregation Between Town of Los Gatos and Other jurisdictions in the Bay Area Region ............ 31
5 Appendix 2: Segregation Data ...................................................................................... 33
6 References .............................................................................................................. 37
3
0.2 List of figures
Figure 1: Racial Dot Map of Los Gatos (2020) .............................................................................. 9
Figure 2: Racial Isolation Index Values for Los Gatos Compared to Other Bay Area Jurisdictions (2020) ....... 11
Figure 3: Racial Dissimilarity Index Values for Los Gatos Compared to Other Bay Area Jurisdictions (2020) .. 14
Figure 4: Theil’s H Index Values for Racial Segregation in Los Gatos Compared to Other Bay Area Jurisdictions
(2020) ........................................................................................................................... 15
Figure 5: Racial Dot Map of Los Gatos and Surrounding Areas (2020) ................................................ 16
Figure 6: Racial Demographics of Los Gatos Compared to All Bay Area Jurisdictions (2020) ..................... 18
Figure 7: Comparing the Share of People of Color in Los Gatos and Vicinity to the Bay Area (2020) ........... 19
Figure 8: Income Dot Map of Los Gatos (2015) ........................................................................... 22
Figure 9: Income Group Isolation Index Values for Los Gatos Compared to Other Bay Area Jurisdictions (2015)
................................................................................................................................... 24
Figure 10: Income Group Dissimilarity Index Values for Los Gatos Compared to Other Bay Area Jurisdictions
(2015) ........................................................................................................................... 26
Figure 11: Income Group Theil’s H Index Values for Los Gatos Compared to Other Bay Area Jurisdictions
(2015) ........................................................................................................................... 27
Figure 12: Income Dot Map of Los Gatos and Surrounding Areas (2015) .............................................. 28
Figure 13: Income Demographics of Los Gatos Compared to Other Bay Area Jurisdictions (2015) ............... 29
0.3 List of tables
Table 1: Racial Isolation Index Values for Segregation within Los Gatos ............................................. 10
Table 2: Racial Dissimilarity Index Values for Segregation within Los Gatos ........................................ 13
Table 3: Theil’s H Index Values for Racial Segregation within Los Gatos ............................................ 15
Table 4: Population by Racial Group, Los Gatos and the Region ...................................................... 17
Table 5: Regional Racial Segregation Measures .......................................................................... 20
Table 6: Income Group Isolation Index Values for Segregation within Los Gatos ................................... 23
Table 7: Income Group Dissimilarity Index Values for Segregation within Los Gatos .............................. 25
Table 8: Theil’s H Index Values for Income Segregation within Los Gatos ........................................... 26
Table 9: Population by Income Group, Los Gatos and the Region ..................................................... 28
Table 10: Regional Income Segregation Measures ....................................................................... 30
Table 11: Neighborhood Racial Segregation Levels in Los Gatos ...................................................... 33
Table 12: Neighborhood Income Segregation Levels in Los Gatos ..................................................... 34
Table 13: Regional Racial Segregation Measures ......................................................................... 35
Table 14: Regional Income Segregation Measures ....................................................................... 35
Table 15: Population by Racial Group, Los Gatos and the Region ..................................................... 36
Table 16: Population by Income Group, Los Gatos and the Region ................................................... 36
4
1 INTRODUCTION
The requirement to Affirmatively Further Fair Housing (AFFH) is derived from The Fair Housing Act of
1968, which prohibited discrimination concerning the sale, rental, and financing of housing based on
race, color, religion, national origin, or sex—and was later amended to include familial status and
disability.1 The 2015 U.S. Department of Housing and Urban Development (HUD) Rule to Affirmatively
Further Fair Housing and California Assembly Bill 686 (2018) mandate that each jurisdiction takes
meaningful action to address significant disparities in housing needs and access to opportunity.23 AB
686 requires that jurisdictions incorporate AFFH into their Housing Elements, which includes inclusive
community participation, an assessment of fair hous ing, a site inventory reflective of AFFH, and the
development of goals, policies, and programs to meaningfully address local fair housing issues. ABAG
and UC Merced have prepared this report to assist Bay Area jurisdictions with the Assessment of Fair
Housing section of the Housing Element.
Assessment of Fair Housing Components
The Assessment of Fair Housing includes five components, which are
discussed in detail on pages 22-43 of HCD’s AFFH Guidance Memo:
A: Summary of fair housing enforcement and outreach capacity
B: Integration and segregation patterns, and trends related to people with
protected characteristics
C: Racially or ethnically concentrated areas of poverty
D: Disparities in access to opportunity
E: Disproportionate housing needs, including displacement risk
1.1 Purpose of this Report
This report describes racial and income segregation in Bay Area jurisdictions. Local jurisdiction staff
can use the information in this report to help fulfill a portion of the second component of the
Assessment of Fair Housing, which requires analysis of integration and segregation patterns and trends
related to people with protected characteristics and lower incomes. Jurisdictions will still need to
perform a similar analysis for familial status and populations with disability.
This report provides segregation measures for both the local jurisdiction and the region using several
indices. For segregation between neighborhoods within a city (intra-city segregation), this report
includes isolation indices, dissimilarity indices, and Theil’s-H index. The isolation index measures
1 https://www.justice.gov/crt/fair-housing-act-2
2 HCD AFFH Guidance Memo
3 The 2015 HUD rule was reversed in 2020 and partially reinstated in 2021.
5
segregation for a single group, while the dissimilarity index measures segregation between two groups.
The Theil’s H-Index can be used to measure segregation between all racial or income groups across the
city at once. HCD’s AFFH guidelines require local jurisdictions to include isolation indices and
dissimilarity indices in the Housing Element. Theil’s H index is provided in addition to these required
measures. For segregation between cities within the Bay Area (inter-city segregation), this report
includes dissimilarity indices at the regional level as required by HCD’s AFFH guidelines. HCD’s AFFH
guidelines also require jurisdictions to compare conditions at the local level to the rest of the region;
and this report presents the difference in the racial and income composition of a jurisdiction relative
to the region as a whole to satisfy the comparison requirement.
1.2 Defining Segregation
Segregation is the separation of different demographic groups into different geographic locations or
communities, meaning that groups are unevenly distributed across geographic space. This report
examines two spatial forms of segregation: neighborhood level segregation within a local jurisdiction
and city level segregation between jurisdictions in the Bay Area.
Neighborhood level segregation (within a jurisdiction, or intra-city): Segregation of race and income
groups can occur from neighborhood to neighborhood within a city. For example, if a local jurisdiction
has a population that is 20% Latinx, but some neighborhoods are 80% Latinx while others have nearly no
Latinx residents, that jurisdiction would have segregated neighborhoods.
City level segregation (between jurisdictions in a region, or inter-city): Race and income divides also
occur between jurisdictions in a region. A region could be very diverse with equal numbers of white,
Asian, Black, and Latinx residents, but the region could also be highly segregated with each city
comprised solely of one racial group.
There are many factors that have contributed to the generation and maintenance of segregation.
Historically, racial segregation stemmed from explicit discrimination against people of color, such as
restrictive covenants, redlining, and discrimination in mortgage lending. This history includes many
overtly discriminatory policies made by federal, state, and local governments (Rothstein 2017).
Segregation patterns are also affected by policies that appear race-neutral, such as land use decisions
and the regulation of housing development.
Segregation has resulted in vastly unequal access to public goods such as quality schools, neighborhood
services and amenities, parks and playgrounds, clean air and water, and public safety (Trounstine
2015). This generational lack of access for many communities, particularly people of color and lower
income residents, has often resulted in poor life outcomes, including lower educational attainment,
higher morbidity rates, and higher mortality rates (Chetty and Hendren 2018, Ananat 2011, Burch 2014,
Cutler and Glaeser 1997, Sampson 2012, Sharkey 2013).
1.3 Segregation Patterns in the Bay Area
Across the San Francisco Bay Area, white residents and above moderate-income residents are
significantly more segregated from other racial and income groups (see Appendix 2). The highest levels
of racial segregation occur between the Black and white populations. The analysis completed for this
report indicates that the amount of racial segregation both within Bay Area cities and across
jurisdictions in the region has decreased since the year 2000. This finding is consistent with recent
research from the Othering and Belonging Institute at UC Berkeley, which concluded that “[a]lthough 7
6
of the 9 Bay Area counties were more segregated in 2020 than they were in either 1980 or 1990, racial
residential segregation in the region appears to have peaked around the year 2000 and has generally
declined since.”4 However, compared to cities in other parts of California, Bay Area jurisdictions have
more neighborhood level segregation between residents from different racial groups. Additionally,
there is also more racial segregation between Bay Area cities compared to other regions in the state.
1.4 Segregation and Land Use
It is difficult to address segregation patterns without an analysis of both historical and existing land use
policies that impact segregation patterns. Land use regulations influence what kind of housing is built
in a city or neighborhood (Lens and Monkkonen 2016, Pendall 2000). These land use regulations in turn
impact demographics: they can be used to affect the number of houses in a community, the number of
people who live in the community, the wealth of the people who live in the community, and where
within the community they reside (Trounstine 2018). Given disparities in wealth by race and ethnicity,
the ability to afford housing in different neighborhoods, as influenced by land use regulations, is highly
differentiated across racial and ethnic groups (Bayer, McMillan, and Reuben 2004).5 ABAG/MTC plans to
issue a separate report detailing the existing land use policies that influence segregation patterns in
the Bay Area.
4 For more information, see https://belonging.berkeley.edu/most-segregated-cities-bay-area-2020.
5 Using a household-weighted median of Bay Area county median household incomes, regional values were $61,050
for Black residents, $122,174 for Asian/Pacific Islander residents, $121,794 for white residents, and $76,306 for
Latinx residents. For the source data, see U.S. Census Bureau, American Community Survey 5-Year Data (2015-
2019), Table B19013B, Table B19013D, B19013H, and B19013I.
7
Definition of Terms - Geographies
Neighborhood: In this report, “neighborhoods” are approximated by
tracts.6 Tracts are statistical geographic units defined by the U.S. Census
Bureau for the purposes of disseminating data. In the Bay Area, tracts
contain on average 4,500 residents. Nearly all Bay Area jurisdictions
contain at least two census tracts, with larger jurisdictions containing
dozens of tracts.
Jurisdiction: Jurisdiction is used to refer to the 109 cities, towns, and
unincorporated county areas that are members of ABAG. Though not all
ABAG jurisdictions are cities, this report also uses the term “city”
interchangeably with “jurisdiction” in some places.
Region: The region is the nine-county San Francisco Bay Area, which is
comprised of Alameda County, Contra Costa County, Marin County,
Napa County, San Francisco County, San Mateo County, Santa Clara
County, Solano County, and Sonoma County.
6 Throughout this report, neighborhood level segregation measures are calculated using census tract data.
However, the racial dot maps in Figure 1 and Figure 5 use data from census blocks, while the income group dot
maps in Figure 8 and Figure 12 use data from census block groups. These maps use data derived from a smaller
geographic scale to better show spatial differences in where different groups live. Census block groups are
subdivisions of census tracts, and census blocks are subdivisions of block groups. In the Bay Area, block groups
contain on average 1,500 people, while census blocks contain on average 95 people.
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2 RACIAL SEGREGATION IN TOWN OF LOS GATOS
Definition of Terms - Racial/Ethnic Groups
The U.S. Census Bureau classifies racial groups (e.g. white or Black/African
American) separately from Hispanic/Latino ethnicity.7 This report combines
U.S. Census Bureau definitions for race and ethnicity into the following
racial groups:
White: Non-Hispanic white
Latinx: Hispanic or Latino of any race8
Black: Non-Hispanic Black/African American
Asian/Pacific Islander: Non-Hispanic Asian or Non-Hispanic Pacific Islander
People of Color: All who are not non-Hispanic white (including people
who identify as “some other race” or “two or more races”)9
2.1 Neighborhood Level Racial Segregation (within Town of Los Gatos)
Racial dot maps are useful for visualizing how multiple racial groups are distributed within a specific
geography. The racial dot map of Los Gatos in Figure 1 below offers a visual representation of the
spatial distribution of racial groups within the jurisdiction. Generally, when the distribution of dots
does not suggest patterns or clustering, segregation measures tend to be lower. Conversely, when
clusters of certain groups are apparent on a racial dot map, segregation measures may be higher.
7 More information about the Census Bureau’s definitions of racial groups is available here:
https://www.census.gov/topics/population/race/about.html.
8 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 to refer to this racial/ethnic group.
9 Given the uncertainty in the data for population size estimates for racial and ethnic groups not included in the
Latinx, Black, or Asian/Pacific Islander categories, this report only analyzes these racial groups in the aggregate
People of Color category.
9
Figure 1: Racial Dot Map of Los Gatos (2020)
Universe: Population. Source: U.S. Census Bureau, 2020 Census State Redistricting Data (Public Law 94-171) Summary File, 2020
Census of Population and Housing, Table P002.
Note: The plot shows the racial distribution at the census block level for Town of Los Gatos and vicinity. Dots in each census
block are randomly placed and should not be construed as actual placement of people.
There are many ways to quantitatively measure segregation. Each measure captures a different aspect
of the ways in which groups are divided within a community. One way to measure segregation is by
using an isolation index:
• The isolation index compares each neighborhood’s composition to the jurisdiction’s
demographics as a whole.
• This index ranges from 0 to 1. Higher values indicate that a particular group is more isolated
from other groups.
• Isolation indices indicate the potential for contact between different groups. The index can be
interpreted as the experience of the average member of that group. For example, if the
isolation index is .65 for Latinx residents in a city , then the average Latinx resident in that city
lives in a neighborhood that is 65% Latinx.
Within Town of Los Gatos the most isolated racial group is white residents. Los Gatos’s isolation index
of 0.663 for white residents means that the average white resident lives in a neighborhood that is
66.3% white. Other racial groups are less isolated, meaning they may be more likely to encounter other
racial groups in their neighborhoods. The isolation index values for all racial groups in Los Gatos for the
years 2000, 2010, and 2020 can be found in Table 1 below. Among all racial groups in this jurisdiction,
the white population’s isolation index has changed the most over time, becoming less segregated from
other racial groups between 2000 and 2020.
10
The “Bay Area Average” column in this table provides the average isolation index value across Bay Area
jurisdictions for different racial groups in 2020.10 The data in this column can be used as a comparison
to provide context for the levels of segregation experienced by racial groups in this jurisdiction. For
example, Table 1 indicates the average isolation index value for white residents across all Bay Area
jurisdictions is 0.491, meaning that in the average Bay Area jurisdiction a white resident lives in a
neighborhood that is 49.1% white.
Table 1: Racial Isolation Index Values for Segregation within Los Gatos
Los Gatos Bay Area
Average
Race 2000 2010 2020 2020
Asian/Pacific Islander 0.079 0.118 0.197 0.245
Black/African American 0.009 0.012 0.022 0.053
Latinx 0.059 0.082 0.104 0.251
White 0.838 0.774 0.663 0.491
Universe: Population.
Source: IPUMS National Historical Geographic Information System (NHGIS). U.S. Census Bureau, 2020 Census State Redistricting
Data (Public Law 94-171) Summary File, 2020 Census of Population and Housing, Table P002. Data from 2010 is from U.S. Census
Bureau, Census 2010, Table P4. Data for 2000 is standardized to 2010 census tract geographies and is from U.S. Census Bureau,
Census 2000, Table P004.
Figure 2 below shows how racial isolation index values in Los Gatos compare to values in other Bay Area
jurisdictions. In this chart, each dot represents a Bay Area jurisdiction. For each racial group, the
spread of dots represents the range of isolation index values among Bay Area jurisdictions.
Additionally, the black line within each racial group notes the isolation index value for that group in
Town of Los Gatos, and each dashed red line represents the Bay Area average for the isolation index
for that group. Local staff can use this chart to contextualize how segregation levels for racial groups
in their jurisdiction compare to other jurisdictions in the region.
10 This average only includes the 104 jurisdictions that have more than one census tract, which is true for all
comparisons of Bay Area jurisdictions’ segregation measures in this report. The segregation measures in this report
are calculated by comparing the demographics of a jurisdiction’s census tracts to the jurisdiction’s demographics,
and such calculations cannot be made for the five jurisdictions with only one census tract (Brisbane, Calistoga,
Portola Valley, Rio Vista, and Yountville).
11
Figure 2: Racial Isolation Index Values for Los Gatos Compared to Other Bay Area
Jurisdictions (2020)
Universe: Bay Area Jurisdictions.
Source: IPUMS National Historical Geographic Information System (NHGIS). U.S. Census Bureau, 2020 Census State Redistricting
Data (Public Law 94-171) Summary File, 2020 Census of Population and Housing, Table P002.
Another way to measure segregation is by using a dissimilarity index:
• This index measures how evenly any two groups are distributed across neighborhoods relative
to their representation in a city overall. The dissimilarity index at the jurisdiction level can be
interpreted as the share of one group that would have to move neighborhoods to create perfect
integration for these two groups.
• The dissimilarity index ranges from 0 to 1. Higher values indicate that groups are more
unevenly distributed (e.g. they tend to live in different neighborhoods).
12
Dissimilarity Index Guidance for Cities with Small Racial Group Populations
The analysis conducted for this report suggests that dissimilarity index
values are unreliable for a population group if that group represents
approximately less than 5% of the jurisdiction’s total population.
HCD’s AFFH guidance requires the Housing Element to include the
dissimilarity index values for racial groups, but also offers flexibility in
emphasizing the importance of various measures. ABAG/MTC
recommends that when cities have population groups that are less than
5% of the jurisdiction’s population (see Table 4), jurisdiction staff use the
isolation index or Thiel’s H-Index to gain a more accurate understanding
of their jurisdiction’s neighborhood-level segregation patterns (intra-city
segregation).
If a jurisdiction has a very small population of a racial group, this indicates
that segregation between the jurisdiction and the region (inter-city
segregation) is likely to be an important feature of the jurisdiction’s
segregation patterns.
In Town of Los Gatos, the Black/African American group is 0.9 percent of
the population - so staff should be aware of this small population size
when evaluating dissimilarity index values involving this group.
Table 2 below provides the dissimilarity index values indicating the level of segregation in Los Gatos
between white residents and residents who are Black, Latinx, or Asian/Pacific Islander. The table also
provides the dissimilarity index between white residents and all residents of color in the jurisdiction,
and all dissimilarity index values are shown across three time periods (2000, 2010, and 2020).
In Los Gatos the highest segregation is between Black and white residents (see Table 2). Los Gatos’s
Black /white dissimilarity index of 0.369 means that 36.9% of Black (or white) residents would need to
move to a different neighborhood to create perfect integration between Black residents and white
residents. However, local jurisdiction staff should note that this dissimilarity index value is not a
reliable data point due to small population size. See callout box above for more information.
The “Bay Area Average” column in this table provides the average dissimilarity index values for these
racial group pairings across Bay Area jurisdictions in 2020. The data in this column can be used as a
comparison to provide context for the levels of segregation between communities of color are from
white residents in this jurisdiction.
13
For example, Table 2 indicates that the average Latinx/white dissimilarity index for a Bay Area
jurisdiction is 0.207, so on average 20.7% of Latinx (or white residents) in a Bay Area jurisdiction would
need to move to a different neighborhood within the jurisdiction to create perfect integration between
Latinx and white residents in that jurisdiction.
Table 2: Racial Dissimilarity Index Values for Segregation within Los Gatos
Los Gatos Bay Area
Average
Race 2000 2010 2020 2020
Asian/Pacific Islander vs. White 0.106 0.145 0.182 0.185
Black/African American vs. White 0.223* 0.246* 0.369* 0.244
Latinx vs. White 0.119 0.143 0.179 0.207
People of Color vs. White 0.093 0.124 0.157 0.168
Universe: Population.
Source: IPUMS National Historical Geographic Information System (NHGIS). U.S. Census Bureau, 2020 Census State Redistricting
Data (Public Law 94-171) Summary File, 2020 Census of Population and Housing, Table P002. Data from 2010 is from U.S. Census
Bureau, Census 2010, Table P4. Data for 2000 is standardized to 2010 census tract geographies and is from U.S. Census Bureau,
Census 2000, Table P004.
Note: If a number is marked with an asterisk (*), it indicates that the index is based on a racial group making up less than 5
percent of the jurisdiction population, leading to unreliable numbers.
Figure 3 below shows how dissimilarity index values in Town of Los Gatos compare to values in other
Bay Area jurisdictions. In this chart, each dot represents a Bay Area jurisdiction. For each racial group
pairing, the spread of dots represents the range of dissimilarity index values among Bay Area
jurisdictions. Additionally, the black line within each racial group pairing notes the dissimilarity index
value in Los Gatos, and each dashed red line represents the Bay Area average for the dissimilarity index
for that pairing. Similar to Figure 2, local staff can use this chart to contextualize how segregation
levels between white residents and communities of color in their jurisdiction compare to the rest of
the region. However, staff should be mindful of whether a racial group in their jurisdiction has a small
population (approximately less than 5% of the jurisdiction’s population), as the dissimilarity index value
is less reliable for small populations.
14
Figure 3: Racial Dissimilarity Index Values for Los Gatos Compared to Other Bay Area
Jurisdictions (2020)
Universe: Bay Area Jurisdictions.
Source: IPUMS National Historical Geographic Information System (NHGIS). U.S. Census Bureau, 2020 Census State Redistricting
Data (Public Law 94-171) Summary File, 2020 Census of Population and Housing, Table P002.
Note: The analysis conducted for this report suggests that dissimilarity index values are unreliable for a population group if
that group represents approximately less than 5% of the jurisdiction’s total population. ABAG/MTC recommends that when
cities have population groups that are less than 5% of the jurisdiction’s population (see Table 4), jurisdiction staff could focus
on the isolation index or Thiel’s H-Index to gain a more accurate understanding of neighborhood-level racial segregation in their
jurisdiction.
The Theil’s H Index can be used to measure segregation between all groups within a jurisdiction:
• This index measures how diverse each neighborhood is compared to the diversity of the whole
city. Neighborhoods are weighted by their size, so that larger neighborhoods play a more
significant role in determining the total measure of segregation.
• The index ranges from 0 to 1. A Theil’s H Index value of 0 would mean all neighborhoods within
a city have the same demographics as the whole city. A value of 1 would mean each group lives
exclusively in their own, separate neighborhood.
• For jurisdictions with a high degree of diversity (multiple racial groups comprise more than 10%
of the population), Theil’s H offers the clearest summary of overall segregation.
The Theil’s H Index values for neighborhood racial segregation in Los Gatos for the years 2000, 2010,
and 2020 can be found in Table 3 below. The “Bay Area Average” column in the table provides the
average Theil’s H Index across Bay Area jurisdictions in 2020. Between 2010 and 2020, the Theil’s H
Index for racial segregation in Los Gatos increased, suggesting that there is now more neighborhood
level racial segregation within the jurisdiction. In 2020, the Theil’s H Index for racial segregation in Los
15
Gatos was lower than the average value for Bay Area jurisdictions, indicating that neighborhood level
racial segregation in Los Gatos is less than in the average Bay Area city.
Table 3: Theil’s H Index Values for Racial Segregation within Los Gatos
Los Gatos Bay Area
Average
Index 2000 2010 2020 2020
Theil's H Multi-racial 0.011 0.015 0.023 0.042
Universe: Population.
Source: IPUMS National Historical Geographic Information System (NHGIS). U.S. Census Bureau, 2020 Census State Redistricting
Data (Public Law 94-171) Summary File, 2020 Census of Population and Housing, Table P002. Data from 2010 is from U.S. Census
Bureau, Census 2010, Table P4. Data for 2000 is standardized to 2010 census tract geographies and is from U.S. Census Bureau,
Census 2000, Table P004.
Figure 4 below shows how Theil’s H index values for racial segregation in Los Gatos compare to values
in other Bay Area jurisdictions in 2020. In this chart, each dot represents a Bay Area jurisdiction.
Additionally, the black line notes the Theil’s H index value for neighborhood racial segregation in Los
Gatos, and the dashed red line represents the average Theil’s H index value across Bay Area
jurisdictions. Local staff can use this chart to compare how neighborhood racial segregation levels in
their jurisdiction compare to other jurisdictions in the region.
Figure 4: Theil’s H Index Values for Racial Segregation in Los Gatos Compared to
Other Bay Area Jurisdictions (2020)
Universe: Bay Area Jurisdictions.
Source: IPUMS National Historical Geographic Information System (NHGIS). U.S. Census Bureau, 2020 Census State Redistricting
Data (Public Law 94-171) Summary File, 2020 Census of Population and Housing, Table P002.
16
2.2 Regional Racial Segregation (between Los Gatos and other
jurisdictions)
At the regional level, segregation is measured between cities instead of between neighborhoods. Racial
dot maps are not only useful for examining neighborhood racial segregation within a jurisdiction, but
these maps can also be used to explore the racial demographic differences between different
jurisdictions in the region. Figure 5 below presents a racial dot map showing the spatial distribution of
racial groups in Los Gatos as well as in nearby Bay Area cities.
Figure 5: Racial Dot Map of Los Gatos and Surrounding Areas (2020)
Universe: Population.
Source: U.S. Census Bureau, 2020 Census State Redistricting Data (Public Law 94-171) Summary File, 2020 Census of Population
and Housing, Table P002.
Note: The plot shows the racial distribution at the census block level for Town of Los Gatos and vicinity. Dots in each census
block are randomly placed and should not be construed as actual placement of people.
To understand how each city contributes to the total segregation of the Bay Area, one can look at the
difference in the racial composition of a jurisdiction compared to the racial composition of the region
as a whole. The racial demographics in Los Gatos for the years 2000, 2010, and 2020 can be found in
Table 4 below. The table also provides the racial composition of the nine-county Bay Area. As of 2020,
Los Gatos has a higher share of white residents than the Bay Area as a whole, a lower share of Latinx
residents, a lower share of Black residents, and a lower share of Asian/Pacific Islander residents.
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Table 4: Population by Racial Group, Los Gatos and the Region
Los Gatos Bay Area
Race 2000 2010 2020 2020
Asian/Pacific Islander 7.6% 10.9% 18.3% 28.2%
Black/African American 0.8% 0.9% 0.9% 5.6%
Latinx 5.2% 7.2% 9.0% 24.4%
Other or Multiple Races 3.2% 4.0% 6.5% 5.9%
White 83.3% 77.0% 65.3% 35.8%
Universe: Population.
Source: IPUMS National Historical Geographic Information System (NHGIS). U.S. Census Bureau, 2020 Census State Redistricting
Data (Public Law 94-171) Summary File, 2020 Census of Population and Housing, Table P002. Data from 2010 is from U.S. Census
Bureau, Census 2010, Table P4. Data for 2000 is standardized to 2010 census tract geographies and is from U.S. Census Bureau,
Census 2000, Table P004.
Figure 6 below compares the racial demographics in Los Gatos to those of all 109 Bay Area
jurisdictions.11 In this chart, each dot represents a Bay Area jurisdiction. For each racial group, the
spread of dots represents the range of that group’s representation among Bay Area jurisdictions.
Additionally, the black line within each racial group notes the percentage of the population of Town of
Los Gatos represented by that group and how that percentage ranks among all 109 jurisdictions. Local
staff can use this chart to compare the representation of different racial groups in their jurisdiction to
those groups’ representation in other jurisdictions in the region, which can indicate the extent of
segregation between this jurisdiction and the region.
11 While comparisons of segregation measures are made only using the 104 jurisdictions with more than one census
tract, this comparison of jurisdiction level demographic data can be made using all 109 jurisdictions.
18
Figure 6: Racial Demographics of Los Gatos Compared to All Bay Area Jurisdictions
(2020)
Universe: Bay Area Jurisdictions.
Source U.S. Census Bureau, 2020 Census State Redistricting Data (Public Law 94-171) Summary File, 2020 Census of Population
and Housing, Table P002.
The map in Figure 7 below also illustrates regional racial segregation between Los Gatos and other
jurisdictions. This map demonstrates how the percentage of people of color in Los Gatos and
surrounding jurisdictions compares to the Bay Area as a whole:
• Jurisdictions shaded orange have a share of people of color that is less than the Bay Area as a
whole, and the degree of difference is greater than five percentage points.
• Jurisdictions shaded white have a share of people of color comparable to the regional
percentage of people of color (within five percentage points).
• Jurisdictions shaded grey have a share of people of color that is more than five percentage
points greater than the regional percentage of people of color.
19
Figure 7: Comparing the Share of People of Color in Los Gatos and Vicinity to the Bay
Area (2020)
Universe: Population.
Source: U.S. Census Bureau, 2020 Census State Redistricting Data (Public Law 94-171) Summary File, 2020 Census of Population
and Housing, Table P002.
Note: People of color refer to persons not identifying as non-Hispanic white. The nine-county Bay Area is the reference region
for this map.
Segregation between jurisdictions in the region can also be analyzed by calculating regional values for
the segregation indices discussed previously. Table 5 presents dissimilarity index, isolation index, and
Theil’s H index values for racial segregation for the entire nine-county Bay Area in 2010 and 2020. In
the previous section of this report focused on neighborhood level racial segregation, these indices were
calculated by comparing the racial demographics of the census tracts within a jurisdiction to the
demographics of the jurisdiction as a whole. In Table 5, these measures are calculated by comparing
the racial demographics of local jurisdictions to the region’s racial makeup. For example, looking at
the 2020 data, Table 5 shows the white isolation index value for the region is 0.429, meaning that on
average white Bay Area residents live in a jurisdiction that is 42.9% white in 2020. An example of
regional dissimilarity index values in Table 5 is the Black/white dissimilarity index value of 0.459,
which means that across the region 45.9% of Black (or white) residents would need to move to a
different jurisdiction to evenly distribute Black and white residents across Bay Area jurisdictions. The
dissimilarity index values in Table 5 reflect recommendations made in HCD’s AFFH guidance for
calculating dissimilarity at the region level.12 The regional value for the Theil’s H index measures how
12 For more information on HCD’s recommendations regarding data considerations for analyzing integration and
segregation patterns, see page 31 of the AFFH Guidance Memo.
20
diverse each Bay Area jurisdiction is compared to the racial diversity of the whole region. A Theil’s H
Index value of 0 would mean all jurisdictions within the Bay Area have the same racial demographics as
the entire region, while a value of 1 would mean each racial group lives exclusively in their own
separate jurisdiction. The regional Theil’s H index value for racial segregation decreased slightly
between 2010 and 2020, meaning that racial groups in the Bay Area are now slightly less separated by
the borders between jurisdictions.
Table 5: Regional Racial Segregation Measures
Index Group 2010 2020
Isolation Index Regional Level
Asian/Pacific Islander 0.317 0.378
Black/African American 0.144 0.118
Latinx 0.283 0.291
White 0.496 0.429
People of Color 0.629 0.682
Dissimilarity Index Regional Level
Asian/Pacific Islander vs. White 0.384 0.369
Black/African American vs. White 0.475 0.459
Latinx vs. White 0.301 0.297
People of Color vs. White 0.296 0.293
Theil's H Multi-racial All Racial Groups 0.103 0.097
Universe: Population.
Source: IPUMS National Historical Geographic Information System (NHGIS). U.S. Census Bureau, 2020 Census State Redistricting
Data (Public Law 94-171) Summary File, 2020 Census of Population and Housing, Table P002. Data from 2010 is from U.S. Census
Bureau, 2010 Census of Population and Housing, Table P4.
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3 INCOME SEGREGATION IN TOWN OF LOS GATOS
Definition of Terms - Income Groups
When analyzing segregation by income, this report uses income group
designations consistent with the Regional Housing Needs Allocation and
the Housing Element:
Very low-income: individuals earning less than 50% of Area Median
Income (AMI)
Low-income: individuals earning 50%-80% of AMI
Moderate-income: individuals earning 80%-120% of AMI
Above moderate-income: individuals earning 120% or more of AMI
Additionally, this report uses the term “lower-income” to refer to all people
who earn less than 80% of AMI, which includes both low-income and very
low-income individuals.
The income groups described above are based on U.S. Department of
Housing and Urban Development (HUD) calculations for 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 income categories used in this report are based on the AMI for the
HUD metro area where this jurisdiction is located.
3.1 Neighborhood Level Income Segregation (within Los Gatos)
Income segregation can be measured using similar indices as racial segregation. Income dot maps,
similar to the racial dot maps shown in Figures 1 and 5, are useful for visualizing segregation between
multiple income groups at the same time. The income dot map of Los Gatos in Figure 8 below offers a
visual representation of the spatial distribution of income groups within the jurisdiction. As with the
racial dot maps, when the dots show lack of a pattern or clustering, income segregation measures tend
to be lower, and conversely, when clusters are apparent, the segregation measures may be higher as
well.
22
Figure 8: Income Dot Map of Los Gatos (2015)
Universe: Population.
Source: U.S. Department of Housing and Urban Development, American Community Survey 5-Year 2011-2015 Low- and Moderate-
Income Summary Data.
Note: The plot shows the income group distribution at the census block group level for Town of Los Gatos and vicinity. Dots in
each block group are randomly placed and should not be construed as actual placement of individuals.
The isolation index values for all income groups in Los Gatos for the years 2010 and 2015 can be found
in Table 6 below.13 Above Moderate-income residents are the most isolated income group in Los Gatos.
Los Gatos’s isolation index of 0.619 for these residents means that the average Above Moderate-income
resident in Los Gatos lives in a neighborhood that is 61.9% Above Moderate-income. Among all income
groups, the Above Moderate-income population’s isolation index has changed the most over time,
becoming less segregated from other income groups between 2010 and 2015.
Similar to the tables presented earlier for neighborhood racial segregation, the “Bay Area Average”
column in Table 6 provides the average isolation index value across Bay Area jurisdictions for different
income groups in 2015. The data in this column can be used as a comparison to provide context for the
levels of segregation experienced by income groups in this jurisdiction. For example, Table 6 indicates
the average isolation index value for very low-income residents across Bay Area jurisdictions is 0.269,
13 This report presents data for income segregation for the years 2010 and 2015, which is different than the time
periods used for racial segregation. This deviation stems from the data source recommended for income
segregation calculations in HCD’s AFFH Guidelines. This data source most recently updated with data from the
2011-2015 American Community Survey 5-year estimates. For more information on HCD’s recommendations for
calculating income segregation, see page 32 of HCD’s AFFH Guidelines.
23
meaning that in the average Bay Area jurisdiction a very low-income resident lives in a neighborhood
that is 26.9% very low-income.
Table 6: Income Group Isolation Index Values for Segregation within Los Gatos
Los Gatos Bay Area
Average
Income Group 2010 2015 2015
Very Low-Income (<50% AMI) 0.125 0.162 0.269
Low-Income (50%-80% AMI) 0.067 0.115 0.145
Moderate-Income (80%-120% AMI) 0.135 0.166 0.183
Above Moderate-Income (>120% AMI) 0.728 0.619 0.507
Universe: Population.
Source: Data for 2015 is from U.S. Department of Housing and Urban Development, American Community Survey 5-Year 2011-
2015 Low- and Moderate-Income Summary Data. Data for 2010 is from U.S. Department of Housing and Urban Development,
American Community Survey 5-Year 2006-2010 Low- and Moderate-Income Summary Data.
Figure 9 below shows how income group isolation index values in Los Gatos compare to values in other
Bay Area jurisdictions. In this chart, each dot represents a Bay Area jurisdiction. For each income
group, the spread of dots represents the range of isolation index values among Bay Area jurisdictions.
Additionally, the black line within each income group notes the isolation index value for that group in
Los Gatos, and each dashed red line represents the Bay Area average for the isolation index for that
group. Local staff can use this chart to contextualize how segregation levels for income groups in their
jurisdiction compare to the rest of the region.
24
Figure 9: Income Group Isolation Index Values for Los Gatos Compared to Other Bay
Area Jurisdictions (2015)
Universe: Bay Area Jurisdictions.
Source: U.S. Department of Housing and Urban Development, American Community Survey 5-Year 2011-2015 Low- and Moderate-
Income Summary Data.
Table 7 below provides the dissimilarity index values indicating the level of segregation in Los Gatos
between residents who are lower-income (earning less than 80% of AMI) and those who are not lower-
income (earning above 80% of AMI). This data aligns with the requirements described in HCD’s AFFH
Guidance Memo for identifying dissimilarity for lower-income households.14 Segregation in Los Gatos
between lower-income residents and residents who are not lower-income increased between 2010 and
2015. Additionally, Table 7 shows dissimilarity index values for the level of segregation in Albany
between residents who are very low-income (earning less than 50% of AMI) and those who are above
moderate-income (earning above 120% of AMI). This supplementary data point provides additional
nuance to an analysis of income segregation, as this index value indicates the extent to which a
jurisdiction’s lowest and highest income residents live in separate neighborhoods.
Similar to other tables in this report, the “Bay Area Average” column shows the average dissimilarity
index values for these income group pairings across Bay Area jurisdictions in 2015. For example, Table
7 indicates that the average dissimilarity index between lower-income residents and other residents in
a Bay Area jurisdiction is 0.198, so on average 19.8% of lower-income residents in a Bay Area
jurisdiction would need to move to a different neighborhood within the jurisdiction to create perfect
income group integration in that jurisdiction.
14 For more information, see page 32 of HCD’s AFFH Guidance Memo.
25
In 2015, the income segregation in Los Gatos between lower-income residents and other residents was
higher than the average value for Bay Area jurisdictions (See Table 7). This means that the lower-
income residents are more segregated from other residents within Los Gatos compared to other
Jurisdictions in the region.
Table 7: Income Group Dissimilarity Index Values for Segregation within Los
Gatos
Los Gatos Bay Area
Average
Income Group 2010 2015 2015
Below 80% AMI vs. Above 80% AMI 0.142 0.226 0.198
Below 50% AMI vs. Above 120% AMI 0.194 0.234 0.253
Universe: Population.
Source: Data for 2015 is from U.S. Department of Housing and Urban Development, American Community Survey 5-Year 2011-
2015 Low- and Moderate-Income Summary Data. Data for 2010 is from U.S. Department of Housing and Urban Development,
American Community Survey 5-Year 2006-2010 Low- and Moderate-Income Summary Data.
Figure 10 below shows how dissimilarity index values for income segregation in Los Gatos compare to
values in other Bay Area jurisdictions. In this chart, each dot represents a Bay Area jurisdiction. For
each income group pairing, the spread of dots represents the range of dissimilarity index values among
Bay Area jurisdictions. Additionally, the black line within each income group pairing notes the
dissimilarity index value in Los Gatos, and each dashed red line represents the Bay Area average for the
dissimilarity index for that pairing. Local staff can use this chart to contextualize how segregation
levels between lower-income residents and wealthier residents in their jurisdiction compared to the
rest of the region.
26
Figure 10: Income Group Dissimilarity Index Values for Los Gatos Compared to Other
Bay Area Jurisdictions (2015)
Universe: Bay Area Jurisdictions.
Source: U.S. Department of Housing and Urban Development, American Community Survey 5-Year 2011-2015 Low- and Moderate-
Income Summary Data.
The Theil’s H Index values for neighborhood income group segregation in Los Gatos for the years 2010
and 2015 can be found in Table 8 below. The “Bay Area Average” column in this table provides the
average Theil’s H Index value across Bay Area jurisdictions for different income groups in 2015. By
2015, the Theil’s H Index value for income segregation in Los Gatos was about the same amount as it
had been in 2010. In 2015, the Theil’s H Index value for income group segregation in Los Gatos was
lower than the average value for Bay Area jurisdictions, indicating there is less neighborhood level
income segregation in Los Gatos than in the average Bay Area city.
Table 8: Theil’s H Index Values for Income Segregation within Los Gatos
Los Gatos Bay Area
Average
Index 2010 2015 2015
Theil's H Multi-income 0.030 0.028 0.043
Universe: Population.
Source: Data for 2015 is from U.S. Department of Housing and Urban Development, American Community Survey 5-Year 2011-
2015 Low- and Moderate-Income Summary Data. Data for 2010 is from U.S. Department of Housing and Urban Development,
American Community Survey 5-Year 2006-2010 Low- and Moderate-Income Summary Data.
27
Figure 11 below shows how Theil’s H index values for income group segregation in Los Gatos compare
to values in other Bay Area jurisdictions in 2015. In this chart, each dot represents a Bay Area
jurisdiction. Additionally, the black line notes the Theil’s H index value for income group segregation in
Los Gatos, and the dashed red line represents the average Theil’s H index value across Bay Area
jurisdictions. Local staff can use this chart to compare how neighborhood income group segregation
levels in their jurisdiction compare to other jurisdictions in the region.
Figure 11: Income Group Theil’s H Index Values for Los Gatos Compared to Other Bay
Area Jurisdictions (2015)
Universe: Bay Area Jurisdictions.
Source: U.S. Department of Housing and Urban Development, American Community Survey 5-Year 2011-2015 Low- and Moderate-
Income Summary Data.
3.2 Regional Income Segregation (between Los Gatos and other
jurisdictions)
At the regional level, segregation is measured between jurisdictions instead of between neighborhoods.
Income dot maps are not only useful for examining neighborhood income segregation within a
jurisdiction, but these maps can also be used to explore income demographic differences between
jurisdictions in the region. Figure 12 below presents an income dot map showing the spatial distribution
of income groups in Los Gatos as well as in nearby Bay Area jurisdictions.
28
Figure 12: Income Dot Map of Los Gatos and Surrounding Areas (2015)
Universe: Population.
Source: U.S. Department of Housing and Urban Development, American Community Survey 5-Year 2011-2015 Low- and Moderate-
Income Summary Data.
Note: The plot shows the income group distribution at the census block group level for Town of Los Gatos and vicinity. Dots in
each block group are randomly placed and should not be construed as actual placement of individuals.
When looking at income segregation between jurisdictions in the Bay Area, one can examine how Los
Gatos differs from the region. The income demographics in Los Gatos for the years 2010 and 2015 can
be found in Table 9 below. The table also provides the income composition of the nine-county Bay Area
in 2015. As of that year, Los Gatos had a lower share of very low-income residents than the Bay Area as
a whole, a lower share of low-income residents, a lower share of moderate-income residents, and a
higher share of above moderate-income residents.
Table 9: Population by Income Group, Los Gatos and the Region
Los Gatos Bay Area
Income Group 2010 2015 2015
Very Low-Income (<50% AMI) 10.83% 14.29% 28.7%
Low-Income (50%-80% AMI) 6.56% 10.57% 14.3%
Moderate-Income (80%-120% AMI) 11% 16.34% 17.6%
Above Moderate-Income (>120% AMI) 71.62% 58.8% 39.4%
29
Universe: Population.
Source: Data for 2015 is from Housing U.S. Department of and Urban Development, American Community Survey 5-Year 2011-
2015 Low- and Moderate-Income Summary Data. Data for 2010 is from U.S. Department of Housing and Urban Development,
American Community Survey 5-Year 2006-2010 Low- and Moderate-Income Summary Data.
Figure 13 below compares the income demographics in Los Gatos to other Bay Area jurisdictions.15 Like
the chart in Figure 3, each dot represents a Bay Area jurisdiction. For each income group, the spread of
dots represents the range of that group’s representation among Bay Area jurisdictions. The smallest
range is among jurisdictions’ moderate-income populations, while Bay Area jurisdictions vary the most
in the share of their population that is above moderate-income. Additionally, the black lines within
each income group note the percentage of Los Gatos population represented by that group and how
that percentage ranks among other jurisdictions. Local staff can use this chart to compare the
representation of different income groups in their jurisdiction to those groups’ representation in other
jurisdictions in the region, which can indicate the extent of segregation between this jurisdiction and
the region.
Figure 13: Income Demographics of Los Gatos Compared to Other Bay Area
Jurisdictions (2015)
Universe: Bay Area Jurisdictions.
Source: U.S. Department of Housing and Urban Development, American Community Survey 5-Year 2011-2015 Low- and Moderate-
Income Summary Data.
15 While comparisons of segregation measures are made only using the 104 jurisdictions with more than one census
tract, this comparison of jurisdiction level demographic data can be made using all 109 jurisdictions.
30
Income segregation between jurisdictions in the region can also be analyzed by calculating regional
values for the segregation indices discussed previously. Similar to the regional racial segregation
measures shown in Table 5, Table 10 presents dissimilarity index, isolation index, and Theil’s H index
values for income segregation for the entire nine-county Bay Area in 2010 and 2015. In the previous
section of this report focused on neighborhood level income segregation, segregation indices were
calculated by comparing the income demographics of the census tracts within a jurisdiction to the
demographics of the jurisdiction as a whole. In Table 10, these measures are calculated by comparing
the income demographics of local jurisdictions to the region’s income group makeup. For example,
looking at 2015 data, Table 10 shows the regional isolation index value for very low-income residents is
0.315 for 2015, meaning that on average very low-income Bay Area residents live in a jurisdiction that
is 31.5% very low-income. The regional dissimilarity index for lower-income residents and other
residents is 0.194 in 2015, which means that across the region 19.4% of lower-income residents would
need to move to a different jurisdiction to create perfect income group integration in the Bay Area as a
whole. The regional value for the Theil’s H index measures how diverse each Bay Area jurisdiction is
compared to the income group diversity of the whole region. A Theil’s H Index value of 0 would mean
all jurisdictions within the Bay Area have the same income demographics as the entire region, while a
value of 1 would mean each income group lives exclusively in their own separate jurisdiction. The
regional Theil’s H index value for income segregation decreased slightly between 2010 and 2015,
meaning that income groups in the Bay Area are now slightly less separated by the borders between
jurisdictions.
Table 10: Regional Income Segregation Measures
Index Group 2010 2015
Isolation Index Regional Level
Very Low-Income (<50% AMI) 0.277 0.315
Low-Income (50%-80% AMI) 0.157 0.154
Moderate-Income (80%-120% AMI) 0.185 0.180
Above Moderate-Income (>120% AMI) 0.467 0.435
Dissimilarity Index Regional Level
Below 80% AMI vs. Above 80% AMI 0.186 0.194
Below 50% AMI vs. Above 120% AMI 0.238 0.248
Theil's H Multi-income All Income Groups 0.034 0.032
Universe: Population.
Source: Data for 2015 is from U.S. Department of Housing and Urban Development, American Community Survey 5-Year 2011-
2015 Low- and Moderate-Income Summary Data. Data for 2010 is from U.S. Department of Housing and Urban Development,
American Community Survey 5-Year 2006-2010 Low- and Moderate-Income Summary Data.
31
4 APPENDIX 1: SUMMARY OF FINDINGS
4.1 Segregation in Town of Los Gatos
• The isolation index measures the segregation of a single group, and the dissimilarity index
measures segregation between two different groups. The Theil’s H-Index can be used to
measure segregation between all racial or income groups across the city at once.
• As of 2020, white residents are the most segregated compared to other racial groups in Los
Gatos, as measured by the isolation index. White residents live in neighborhoods where they
are less likely to come into contact with other racial groups.
• Among all racial groups, the white population’s isolation index value has changed the most over
time, becoming less segregated from other racial groups between 2000 and 2020.
• According to the dissimilarity index, within Los Gatos the highest level of racial segregation is
between Black and white residents.16 However, local jurisdiction staff should note that this
dissimilarity index value is not a reliable data point due to small population size.
• According to the Theil’s H-Index, neighborhood racial segregation in Los Gatos increased
between 2010 and 2020. Neighborhood income segregation stayed about the same between
2010 and 2015.
• Above Moderate-income residents are the most segregated compared to other income groups in
Los Gatos. Above Moderate-income residents live in neighborhoods where they are less likely to
encounter residents of other income groups.
• Among all income groups, the Above Moderate-income population’s segregation measure has
changed the most over time, becoming less segregated from other income groups between
2010 and 2015.
• According to the dissimilarity index, segregation between lower-income residents and residents
who are not lower-income has increased between 2010 and 2015. In 2015, the income
segregation in Los Gatos between lower-income residents and other residents was higher than
the average value for Bay Area jurisdictions.
4.2 Segregation Between Town of Los Gatos and Other jurisdictions in
the Bay Area Region
• Los Gatos has a higher share of white residents than other jurisdictions in the Bay Area as a
whole, a lower share of Latinx residents, a lower share of Black residents, and a lower share of
Asian/Pacific Islander residents.
16 The analysis conducted for this report suggests that dissimilarity index values are unreliable for a population
group if that group represents approximately less than 5% of the jurisdiction’s total population. ABAG/MTC
recommends that when cities have population groups that are less than 5% of the jurisdiction’s population (see
Table 15 in Appendix 2), jurisdiction staff could focus on the isolation index or Thiel’s H-Index to gain a more
accurate understanding of neighborhood-level racial segregation in their jurisdiction.
32
• Regarding income groups, Los Gatos has a lower share of very low-income residents than other
jurisdictions in the Bay Area as a whole, a lower share of low-income residents, a lower share
of moderate-income residents, and a higher share of above moderate-income residents.
33
5 APPENDIX 2: SEGREGATION DATA
Appendix 2 combines tabular data presented throughout this report into a more condensed format. This
data compilation is intended to enable local jurisdiction staff and their consultants to easily reference
this data and re-use the data in the Housing Element or other relevant documents/analyses.
Table 11 in this appendix combines data from Table 1, Table 2, and Table 3 in the body of the report.
Table 12 in this appendix combines data from Table 6, Table 7, and Table 8 in the body of the report.
Table 13 represents a duplication of Table 5 in the body of the report; Table 14 represents a
duplication of Table 10 in the body of the report; Table 15 in this appendix represents a duplication of
Table 4 in the body of the report, while Table 16 represents a duplication of Table 9 in the body of the
report.
Table 11: Neighborhood Racial Segregation Levels in Los Gatos
Los Gatos Bay Area
Average
Index Race 2000 2010 2020 2020
Isolation
Asian/Pacific Islander 0.079 0.118 0.197 0.245
Black/African American 0.009 0.012 0.022 0.053
Latinx 0.059 0.082 0.104 0.251
White 0.838 0.774 0.663 0.491
Dissimilarity
Asian/Pacific Islander vs. White 0.106 0.145 0.182 0.185
Black/African American vs. White 0.223* 0.246* 0.369* 0.244
Latinx vs. White 0.119 0.143 0.179 0.207
People of Color vs. White 0.093 0.124 0.157 0.168
Theil's H Multi-racial All 0.011 0.015 0.023 0.042
Universe: Population.
Source: IPUMS National Historical Geographic Information System (NHGIS). U.S. Census Bureau, 2020 Census State Redistricting
Data (Public Law 94-171) Summary File, 2020 Census of Population and Housing, Table P002. Data from 2010 is from U.S. Census
Bureau, 2010 Census of Population and Housing, Table P4. Data for 2000 is standardized to 2010 census tract geographies and is
from U.S. Census Bureau, Census 2000, Table P004.
Note: If a number is marked with an asterisk (*), it indicates that the index is based on a racial group making up less than 5
percent of the jurisdiction population, leading to unreliable numbers.
34
Table 12: Neighborhood Income Segregation Levels in Los Gatos
Los Gatos Bay Area
Average
Index Income Group 2010 2015 2015
Isolation
Very Low-Income (<50% AMI) 0.125 0.162 0.269
Low-Income (50%-80% AMI) 0.067 0.115 0.145
Moderate-Income (80%-120% AMI) 0.135 0.166 0.183
Above Moderate-Income (>120% AMI) 0.728 0.619 0.507
Dissimilarity
Below 80% AMI vs. Above 80% AMI 0.142 0.226 0.198
Below 50% AMI vs. Above 120% AMI 0.194 0.234 0.253
Theil's H Multi-racial All 0.030 0.028 0.043
Universe: Population.
Source: Income data for 2015 is from U.S. Department of Housing and Urban Development, American Community Survey 5-Year
2011-2015 Low- and Moderate-Income Summary Data. Data for 2010 is from U.S. Department of Housing and Urban
Development, American Community Survey 5-Year 2006-2010 Low- and Moderate-Income Summary Data.
35
Table 13: Regional Racial Segregation Measures
Index Group 2010 2020
Isolation Index Regional Level
Asian/Pacific Islander 0.317 0.378
Black/African American 0.144 0.118
Latinx 0.283 0.291
White 0.496 0.429
People of Color 0.629 0.682
Dissimilarity Index Regional Level
Asian/Pacific Islander vs. White 0.384 0.369
Black/African American vs. White 0.475 0.459
Latinx vs. White 0.301 0.297
People of Color vs. White 0.296 0.293
Theil's H Multi-racial All Racial Groups 0.103 0.097
Universe: Population.
Source: IPUMS National Historical Geographic Information System (NHGIS). U.S. Census Bureau, 2020 Census State Redistricting
Data (Public Law 94-171) Summary File, 2020 Census of Population and Housing, Table P002. Data from 2010 is from U.S. Census
Bureau, 2010 Census of Population and Housing, Table P4.
Table 14: Regional Income Segregation Measures
Index Group 2010 2015
Isolation Index Regional Level
Very Low-Income (<50% AMI) 0.277 0.315
Low-Income (50%-80% AMI) 0.157 0.154
Moderate-Income (80%-120% AMI) 0.185 0.180
Above Moderate-Income (>120% AMI) 0.467 0.435
Dissimilarity Index Regional Level
Below 80% AMI vs. Above 80% AMI 0.186 0.194
Below 50% AMI vs. Above 120% AMI 0.238 0.248
Theil's H Multi-income All Income Groups 0.034 0.032
Universe: Population.
Source: Data for 2015 is from U.S. Department of Housing and Urban Development, American Community Survey 5-Year 2011-
2015 Low- and Moderate-Income Summary Data. Data for 2010 is from U.S. Department of Housing and Urban Development,
American Community Survey 5-Year 2006-2010 Low- and Moderate-Income Summary Data.
36
Table 15: Population by Racial Group, Los Gatos and the Region
Los Gatos Bay Area
Race 2000 2010 2020 2020
Asian/Pacific Islander 7.55% 10.95% 18.28% 35.8%
Black/African American 0.76% 0.86% 0.89% 5.6%
Latinx 5.21% 7.21% 9% 28.2%
Other or Multiple Races 3.16% 3.95% 6.55% 24.4%
White 83.31% 77.03% 65.29% 5.9%
Universe: Population.
Source: IPUMS National Historical Geographic Information System (NHGIS). U.S. Census Bureau, 2020 Census State Redistricting
Data (Public Law 94-171) Summary File, 2020 Census of Population and Housing, Table P002. Data from 2010 is from U.S. Census
Bureau, 2010 Census of Population and Housing, Table P4. Data for 2000 is standardized to 2010 census tract geographies and is
from U.S. Census Bureau, Census 2000, Table P004.
Table 16: Population by Income Group, Los Gatos and the Region
Los Gatos Bay Area
Income Group 2010 2015 2015
Very Low-Income (<50% AMI) 10.83% 14.29% 28.7%
Low-Income (50%-80% AMI) 6.56% 10.57% 14.3%
Moderate-Income (80%-120% AMI) 11% 16.34% 17.6%
Above Moderate-Income (>120% AMI) 71.62% 58.8% 39.4%
Universe: Population.
Source: Data for 2015 is from U.S. Department of Housing and Urban Development, American Community Survey 5-Year 2011-
2015 Low- and Moderate-Income Summary Data. Data for 2010 is from U.S. Department of Housing and Urban Development,
American Community Survey 5-Year 2006-2010 Low- and Moderate-Income Summary Data.
37
6 REFERENCES
Ananat, Elizabeth Oltmans. 2011. “The wrong side(s) of the tracks: The causal effects of racial
segregation on urban poverty and inequality,” American Economic Journal: Applied Economics 3: 34-
66.
Bayer, Patrick, Robert McMillan, and Kim S. Rueben. 2004. “What Drives Racial Segregation? New
Evidence using Census Microdata,” Journal of Urban Economics 56(3): 514-535.
Burch, Traci. 2014. “The Old Jim Crow: Racial Residential Segregation and Imprisonment,” Law and
Policy 36(3): 223-255.
Chetty, Raj and Nathanial Hendren. 2018. “The Impacts of Neighborhoods on Intergenerational Mobility
I: Childhood Exposure Effects,” The Quarterly Journal of Economics 133(3):1107-1162
Cutler, David M., and Edward L. Glaeser. 1997. “Are ghettos good or bad?,” The Quarterly Journal of
Economics 112(3): 827-72.
Lens, Michael and Paavo Monkkonen. 2016. “Do Strict Land Use Regulations Make Metropolitan Areas
More Segregated by Income?,” Journal of the American Planning Association 82(1): 6–21.
Pendall, Rolf. 2000. “Local Land-Use Regulation and the Chain of Exclusion,” Journal of the American
Planning Association 66(2): 125-142.
Rothstein, Richard. 2017. The Color of Law: A Forgotten History of how our Government Segregated
America. New York: Liveright Publishing.
Sampson, Robert J. 2012. Great American city: Chicago and the enduring neighborhood effect.
Chicago: University of Chicago Press.
Sharkey, Patrick. 2013. Stuck in place: Urban neighborhoods and the end of progress toward racial
equality. Chicago: University of Chicago Press.
Trounstine, Jessica. 2015. “Segregation and Inequality in Public Goods,” American Journal of Political
Science 60(3): 709-725.
Trounstine, Jessica. 2018. Segregation by Design: Local Politics and Inequality in American Cities. New
York: Cambridge University Press.
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From: Salim Damerdji >
Sent: Monday, August 8, 2022 9:16:30 AM
To: Rob Rennie <RRennie@losgatosca.gov>; Maria Ristow <MRistow@losgatosca.gov>; Mary Badame
<MBadame@losgatosca.gov>; Matthew Hudes <MHudes@losgatosca.gov>; Marico Sayoc
<MSayoc@losgatosca.gov>
Cc: HousingElements@hcd.ca.gov <HousingElements@hcd.ca.gov>; Keith Diggs <>
Subject: Letter on Los Gatos's duty to AFFH in RHNA6.
EXTERNAL SENDER
Dear Los Gatos City Council:
Please see the attached letter from South Bay YIMBY regarding Los Gatos's duty to AFFH
in its 6th cycle Housing Element.
Best,
Salim Damerdji
ATTACHMENT 2
August 04, 2022
Dear Los Gatos City Council:
We are writing on behalf of South Bay YIMBY regarding Los Gatos’s 6th Cycle Housing
Element Update. As a regional pro-housing advocacy group, South Bay YIMBY works to
ensure cities adopt housing elements that are fair, realistic, and lawful.
Per §8899.50(a)(1) of state code, Los Gatos's housing element must affirmatively further
fair housing, which entails 'taking meaningful actions... that overcome patterns of segreg‐
ation.'
The City of Los Gatos is uniquely positioned to affirmatively further fair housing, as Los
Gatos is a wealthy, exclusionary city that researchers with the Othering and Belonging In‐
stitute at UC Berkeley identify as highly segregated from the rest of the Bay Area. This so‐
cioeconomic segregation is caused by the exclusionary cost of housing in your community,
where an average home, as of April 30th, costs $2,926,000, which is only affordable to
someone earning a salary of $452,000, meaning only the richest 2% of households
can afford to settle down in your community. To put a finer point on the level of afflu‐
ence in your city, the average home in your city costs more than French castles. It is thus
no coincidence that your city is 64% whiter than the rest of the Bay, as well as 87% less
black than the rest of the Bay Area.
In a 2021 report entitled 'Exclusionary Zoning: Its Effect on Racial Discrimination in the
Housing Market,' economic advisors for the White House outline how exclusionary zoning,
like yours, causes segregation. Your exclusionary zoning pushes low income children to
live in less resourced areas, which begets worse life outcomes from health to income. The
research is clear: exclusionary zoning violates your duty to further fair housing.
To take meaningful actions that overcome patterns of segregation, we recommend you:
1. End apartment bans in high opportunity areas. This will give middle and working
class families the opportunity to share in the resources your rich neighborhoods enjoy. As
of 2020, your city banned apartments in over 93.6% of residential areas , including
in 96.7% of high opportunity residential areas.
2. Accommodate 3423 low income homes in your site inventory. While substantially
larger than the floor of 847 low income homes required by RHNA, 3423 is the number of
homes required to bring the proportion of low income families in your city in line with the
rest of the Bay Area. While this number is large enough to be politically challenging, it will
always be politically challenging to overcome segregation, as AFFH requires.
Thank you,
Salim Damerdji, South Bay YIMBY
Keith Diggs, YIMBY Law