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Item2.Addendum with Attachments 3 and 4 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 ADDENDUM TOWN OF LOS GATOS HOUSING ELEMENT ADVISORY BOARD REPORT DATE: August 17, 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. REMARKS: Staff is continuing to review the Initial Public Review Draft of the 2023-2031 Housing Element and in doing so has identified the following edits that will be made prior to submittal to the California Department of Housing and Community Development (HCD): 1. Create a glossary and acronyms; 2. Describe 2040 General Plan policies and programs regarding housing production within the introduction chapter; 3. Modify Implementation Program AH to include all text; 4. Modify the narrative for Site E-1 on page D-22 to state that the density is 13 dwelling units per acre; 5. Modify the narrative for Sites E-2 through E-7 on pages D-23 through D-28 to state that the density is 20 dwelling units per acre; 6. The following modifications were made to Table D-3 of Appendix D (Attachment 3): a. The total number of units for Site A-2; b. The total number of units and income distribution for Site E-1; c. The income distribution for Sites E-2 through E-7; and d. The resulting income distributions provided in the subtotal of the table. 7. Modify Table D-3 of Appendix D to add a row to the subtotal section for Senate Bill 9 housing unit projections. Attachment 4 contains public comments received after the completion of the Staff Report. PAGE 2 OF 2 SUBJECT: Review and Provide Input on the Initial Public Review Draft of the 2023-2031 Housing Element August 17, 2022 N:\DEV\HEAB\2021-2023\HEAB Staff Reports and Attachments\2022\08-18-2022\Item 2 - Draft Element\Addendum\Item2.Addendum.docx ATTACHMENTS: Previously received with the August 18, 2022, Staff Report: 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 Received with this Addendum Report: 3. Modified Table D-3 of Appendix D 4. Public Comments received between 11:01 a.m., Friday, August 12, 2022, and 11:00 a.m., Wednesday, August 17, 2022 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 10 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 ATTACHMENT 3 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 13 100 50 50 200 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 3 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 E-4 16270 Burton Rd. 42407052 North Forty Specific Plan N-40 0.43 20 9 E-5 16210 Burton Rd. 42407054 North Forty Specific Plan N-40 0.26 20 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 E-7 14823 Los Gatos Blvd. 42407065 North Forty Specific Plan N-40 0.37 20 7 20 13 7 1 1 7 5 2 2 8 4 4 10 5 5 4 2 2 2 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 813 436 465 206 1,919 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 202 202 TOTAL 833 496 525 468 2,321 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 215 140 157 -482 29 SOURCE: Town of Los Gatos; EMC Planning Group Inc. From: Phil Koen <> Sent: Wednesday, August 17, 2022 8:50 AM To: Wendy Wood <WWood@losgatosca.gov>; Joel Paulson <jpaulson@losgatosca.gov>; ; Rick Van Hoesen () <> Cc: Laurel Prevetti <LPrevetti@losgatosca.gov>; Gabrielle Whelan <GWhelan@losgatosca.gov> Subject: Agenda item #2 - HEAB Meeting August 18, 2022 Dear Members of the HEAB, Please accept the following comments on the Draft 2023 – 2031 Housing Element 1.Page B-10: The comment at the bottom of the page referencing Figure B-8 and discussing jobs per employed ratio is incorrect. Figure B-8 shows Jobs-Household ratio and not Jobs-Employed Resident ratio. Additionally, the comment that the Town of Los Gatos is a “net importer of workers” is misleading. The Town is a “net importer of workers” only in the low wage category. At the high wage category, the Town is a “net exporter of workers”. There is a bar bell distribution by wage category and care needs to be exercised in explaining this distribution. Lastly, the comment that the jobs per employed resident ratio has increased from 1.32 in 2002 to 1.59 in 2018 is factually incorrect. These are the numbers of Jobs-Household ratio from schedule POPEMP-13 not the numbers for jobs per employed resident ratio. 2.Page D – 2: Table D-2 has not been completed, yet the data is available in the site inventory analysis. There are a total of 179 pending units which can be applied to the RHNA. In addition, the Town can credit the 200 planned ADU toward the RHNA. This brings the remaining RHNA units to 1,913 which includes a 15% buffer. 3.Pages D-22 – D-30: These pages discuss sites that were previously used in the 5th cycle. According to the HCD Site Inventory Guidebook, for sites that were used in a prior housing element planning period, a program requiring rezoning within three years of the beginning of the planning period to allow residential use by right at specified densities for housing development in which at least 20 percent of the units are affordable to lower income households must be included in the Housing Element. Does this requirement apply to these sites? 4.Pages D-40 – D-44: Attached please find an example of the site inventory prepared by the City of Sunnyvale. Sunnyvale has included in their inventory analysis a realistic buildout density based on development standards, market trends and recent development to calculate capacity. This complies with HCD’s requirements to demonstrate that the projected development is likely to occur. Additionally, the Sunnyvale analysis also includes a redevelopment likelihood which further informs the reader of the suitability of the identified sites. The Town’s analysis does not contain any such analysis and therefore most likely overstates the development capacity. Would it be prudent for the Town to revisit the site selection inventory and include realistic buildout density and redevelopment likelihood in the analysis? 5.Pages D-40 – D-44: It is not clear from these tables if the Town is relying on nonvacant sites to accommodate 50 percent or more of the RHNA for lower income households. If the Town is relying on nonvacant sites to accommodate 50 percent or more of its RHNA for lower income households, the nonvacant site’s existing use is presumed to impede additional residential development, unless the housing element describes findings based on substantial evidence that the use will likely be discontinued during the planning period. Has the HEAB been able to determine if the Town is relying on 50 percent or more of the identified nonvacant sites to accommodate RHNA for lower income households? 6.Page E-3: Table E-1 states for program 1.2 that the Town amended the Town Code to address this program. While the Town Code was amended, it does not appear that it was amended as specified in the program 1.2 and further detailed by the Enhanced Second Unit Program on page 19 of the 2015- ATTACHMENT 4 2023 Housing Element. The enhanced second unit program for Hillside Residentially zoned lots 5 acres and greater required “as a prerequisite for obtaining approvals in the Second Unit Program expanded area, participating homeowners would be required to record a deed restriction on the title record of properties specifying that the second unit shall be offered at a reduced rent that is affordable to a lower income renter (i.e. less than 80 percent of AMI) if the unit is occupied by someone other than a member of the household”. At that time, the Town did not allow second units on any non-conforming residential lots or in hillside areas. In exchange for allowing such second units, the participating homeowner would be required to record a deed restriction. The amended Town Code does not appear to include this prerequisite. The Town Attorney should review the amended Town Code to verify the accuracy of program 1.2 results. Lastly, we wish to inform the HEAB as of yesterday afternoon the Los Gatos Community Alliance delivered to the Town Clerk 3,417 signatures on 159 petitions regarding a Referendum Against a Resolution Passed by the Town Council. The required number of signatures based upon 10% of 21,978 registered voters is 2,198. 3,147 signatures exceed the minimum number of signatures required in order to qualify for filing said petition. Given this development, the HEAB may wish to reconsider the site inventory analysis and include a rezoning program for the specific sites identified in the site inventory that will allow for development potential consistent with the Town’s RHNA requirements. We have attached an example of a rezoning program that was included in the City of Saratoga’s draft Housing Element for your consideration. We want to thank the HEAB for their hard work and dedication in assisting the Town in preparing the 6th cycle Housing Element. Thank you for considering our comments. Los Gatos Community Alliance