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Item2.Staff Report with 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: 08/04/2022 ITEM NO: 2 TOWN OF LOS GATOS HOUSING ELEMENT ADVISORY BOARD REPORT DATE: July 29, 2022 TO: Housing Element Advisory Board FROM: Joel Paulson, Community Development Director SUBJECT: Continue the Review and Discussion of the Draft Goals, Policies, and Programs. BACKGROUND: On June 16, 2022, and July 7, 2022, the HEAB began discussion and review of the draft Housing Element Goals, Policies, and Implementation Programs. At the June 16, 2022, meeting the HEAB provided staff the following direction and modifications to the draft Goals, Policies, and Implementation Programs: 1. Add an Implementation Program related to commercial linkage fees; 2. Add an Implementation Program related to reduced parking; 3. Add an Implementation Program related to a 100 percent affordable project located in a General Plan Land Use Designation of Mixed-Use; 4. Add an Implementation Program related to density and height incentives; 5. Add an Implementation Program related to the preservation of existing multi-family housing; 6. Add an Implementation Program related to a yearly meeting between staff and developers to discuss constraints to affordable housing projects; 7. Add a verb to Goal HE-5; 8. Provide an introductory sentence for each Goal; 9. Modify the order of Goal 1 and Goal 3; and 10. Modify the terminology for Goal 1 and Goal 3. At the July 7, 2022, meeting the HEAB provided staff the following direction and modifications to the draft Goals, Policies, and Implementation Programs: 1. Incorporate the suggestions provided in the July 7, 2022, Desk Item Report by Commissioner Janoff; 2. Add an Implementation Program which reduces parking requirements; PAGE 2 OF 5 SUBJECT: Continue the Review and Discussion of the Draft Goals, Policies and Implementation Programs July 29, 2022 N:\DEV\HEAB\2021-2023\HEAB Staff Reports and Attachments\2022\08-04-2022\Item2 - Housing Element Goals, Policies, and Programs\Item2.Staff Report.docx BACKGROUND (continued): 3. Add an Implementation Program which discusses the preservation of existing, smaller housing to prevent the demolition and construction of a new, larger single-family home; 4. Add an Implementation Program to incentivize the construction of detached ADU’s; 5. Add a new goal for removing government constraints to the production of new housing; 6. Re-word Policy HE-1.2; 7. Re-organize the existing Goals, Policies, and Implementation Programs similarly to the Housing Elements for the cities of Folsom and Yorba Linda; 8. Remove Implementation Program E; 9. Modify Implementation Programs I and J to remove the term ‘missing middle’ per the adopted General Plan 2040. Additionally, add an educational component to these programs to help the public understand how to accomplish this type of development; 10. Add a policy which addresses preserving natural affordable housing; 11. Re-word Policy HE-3.1; 12. Re-word Policy HE-3.6 to discuss other models of senior living, such as down-sizing; 13. Remove the term ‘elderly’ from Policy HE-3.7 and replace with ‘senior’ for consistency; 14. Add a requirement that assisted living facilities comply with the Town’s Below Market Program; 15. Move Policy HE-3.4 to Goal HE-5; 16. Add an Implementation Program for weather shelters to provide services for the unhoused population; 17. Modify all Implementation Program language to make the intent clearer; 18. Modify Implementation Program AE to use stronger language to describe green building; 19. Add reference to water conservation in the introduction section; 20. Modify HE-5.1 to use stronger and more inclusive language to describe sets of persons; 21. Modify the title of Goal HE-5 to include reference to fair housing; 22. Add a standalone Goal for Affirmatively Furthering Fair Housing (AFFH); and 23. Add an Implementation Program to re-zone the Cal Trans property off of Oka Road. DISCUSSION: The purpose of this meeting is to complete the review of the draft Goals, Polices, and Implementation Programs of the Housing Element, now that it has been updated in response to the comments listed above (Attachment 1). The Goals, Policies, and Implementation Programs section is a critical component of the Housing Element and is intended to address the housing needs of Los Gatos. PAGE 3 OF 5 SUBJECT: Continue the Review and Discussion of the Draft Goals, Policies and Implementation Programs July 29, 2022 N:\DEV\HEAB\2021-2023\HEAB Staff Reports and Attachments\2022\08-04-2022\Item2 - Housing Element Goals, Policies, and Programs\Item2.Staff Report.docx DISCUSSION (continued): Discussion and Direction The following questions were raised to the Town Attorney by the HEAB at the July 7, 2022, meeting. The Town Attorney’s response is provided below each question in italic font, followed by staff’s response in the bolded text. 1. Can the Town impose different floor area ratio and/or building height requirements for single-family homes versus multi-family homes? A zoning ordinance is a legislative act, which will generally be upheld so long as the zoning ordinance is reasonably related to public welfare [Associated Homebuilders, Inc. v. City of Livermore, 18 Cal.3d 582 (1976)]. In order to determine whether a zoning ordinance is reasonably related to public welfare, a court will: a) Forecast the probable effect and duration of the restriction; b) Identify competing interests affected by the restriction; and c) Determine whether the regulation, in light of its probable effect, represents a reasonable accommodation of the competing interests. In the Town Attorney’s opinion, if the Town were to determine that different floor area ratio or building height standards were needed in order to encourage multi-family housing, it is more likely than not that a court would uphold such a zoning ordinance. Per the Town Code, floor area ratio does not apply to a multi-family development, unless developed as multi-family with detached single-family condominium units with a common shared area. The HEAB may choose to develop a new floor area ratio standard for multi- family development with single-family condominium units. 2. Can the Town prohibit the demolition of existing residences after purchase for a specified period of time? As described above, a zoning ordinance will generally be upheld if it is reasonably related to a legitimate government goal and does not result in an unconstitutional “taking” of private property. A regulation will constitute a “taking” if it deprives a property owner of all economically viable use of real property. In general, an anti-demolition ordinance would not deprive property owners of all economically viable use of real property. If the Town were to adopt such an ordinance, it would be important to include an exemption for situations in which application of the ordinance would result in a “taking.” The California Supreme Court has upheld a Santa Monica anti-demolition ordinance against a challenge that it violated a property owner’s due process rights by restricting his right to exit the rental property PAGE 4 OF 5 SUBJECT: Continue the Review and Discussion of the Draft Goals, Policies and Implementation Programs July 29, 2022 N:\DEV\HEAB\2021-2023\HEAB Staff Reports and Attachments\2022\08-04-2022\Item2 - Housing Element Goals, Policies, and Programs\Item2.Staff Report.docx DISCUSSION (continued): business [Nash v. City of Santa Monica, 37 Cal.3d 97, 109-09 (1984)]. Policy HE-4.4 has been added to encourage maintaining naturally affordable housing types, such as duplexes and townhomes (Attachment 1). 3. Can the Town require assisted living facilities to comply with the Town’s Below Market Price Program? The Town’s Below Market Price (BMP) Program policy applies to “all residential projects, mixed-use projects, multiple-family dwelling projects, residential condominium projects, condominium conversions, and residential planned development projects that include five or more residential units.” While there are no California cases on point, there is a federal case holding that assisted living facilities do not constitute “residences” [431 E. Palisade Ave. Real Estate, LLC v. City of Englewood, 977 F.3d 277 (2020)]. Based on that federal precedent, it is the Town Attorney’s opinion that the Town’s BMP Program cannot be applied to assisted living facilities. Based on the opinion of the Town Attorney, this modification was not included. At the July 7, 2022, HEAB meeting, it was recommended to create a standalone Goal for AFFH. At the guidance of the Town’s Housing Element Consultant, it was recommended not to do so, as it would result in an unbalanced distribution of the Policies and Implementation Programs. Rather, staff has provided an AFFH icon within the document to highlight if a Policy is directly related to AFFH compliance. The following questions are provided to guide the HEAB in their discussion on the proposed draft Goals, Policies, and Implementation Programs for the Housing Element: 1. Have the previous comments been adequately addressed? 2. Are there additional modifications that should be made? The discussion at this meeting is intended to be a confirmation that previous comments have been addressed, and that the resulting draft of the Goals, Policies, and Implementation Programs are ready to be included in the Initial Draft Housing Element. Because of the constrained timeline, this should be a “fatal flaws” review. All suggestions for changes to the draft Goals, Policies, and Implementation Programs, whether from HEAB members or the public, that are received by 11:00 a.m. on Wednesday, August 3, 2022, will be provided to the HEAB in an Addendum Report that afternoon so that proposed changes can be considered by all committee 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. PAGE 5 OF 5 SUBJECT: Continue the Review and Discussion of the Draft Goals, Policies and Implementation Programs July 29, 2022 N:\DEV\HEAB\2021-2023\HEAB Staff Reports and Attachments\2022\08-04-2022\Item2 - Housing Element Goals, Policies, and Programs\Item2.Staff Report.docx NEXT STEPS: The next HEAB meeting is scheduled for August 18, 2022, in which staff will be providing the Initial Draft Housing Element for the HEAB’s review and discussion. Pending completion of this meeting, the Initial Draft Housing Element will be available for public comment for 30 days, followed by at least 10 business days to consider and incorporate public comments prior to submittal to the Department of Housing and Community Development for their first review. PUBLIC COMMENTS: Attachment 2 includes public comments received between 11:01 a.m., Thursday, July 7, 2022, and 11:00 a.m. on Friday, July 29, 2022. ATTACHMENTS: 1. Draft Goals, Policies, and Implementation Programs 2. Public Comments received between 11:01 a.m., Thursday, July 7, 2022, and 11:00 a.m. on Friday, July 29, 2022 This Page Intentionally Left Blank 10 6th Cycle Housing Element July 2022 Initial Draft 2023-2031 Housing Element 10-1 10.1 Goals, Policies, and Implementation Programs 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 a diversity of new housing 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. (Source: Formerly Policies HOU-2.1, 2.2, 9.1) 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. (New) Policy HE-1.3 Infrastructure All new residential development shall be sufficiently served by public services and facilities, including pedestrian and vehicular circulation, water and wastewater services, police, fire, schools, and parks. (Source: Formerly Policies HOU-2.4, 2.2, 9.1) ATTACHMENT 1 Initial Draft 2023-2031 Housing Element 10-2 Initial Draft 2023-2031 Housing Element July 2022 Policy HE-1.4 Housing Design Ensure that all new housing is well designed and fosters a sense of community. (Source: Formerly Policy HOU-2.5 modified) Policy HE-1.5 Town Resources Provide adequate management and staffing of to complete Housing Element implementation programs and funds. (Source: Formerly Policy HOU-8.2) Policy HE-1.6 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-1.7 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. (Source: Formerly Policy HOU-6.2 modified) 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. (Source: Formerly Policy HOU-1.1 modified) 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. (New) 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. (Source: Formerly Policy HOU-2.3 modified) 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. AFFH AFFH AFFH AFFH AFFH 10. Housing Element July 2022 Initial Draft 2023-2031 Housing Element 10-3 (Source: Formerly Policy HOU-2.6 modified) 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. (New) Policy HE-2.6 Promote Accessory Dwelling Unit Construction Encourage homeowners to construct detached rental ADU’s in order to increase the housing stock of smaller rental units. (New) 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. (Source: Formerly Policy HOU-5.3 modified) 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. (Source: Formerly Policy HOU-6.4) 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. (New) Policy HE-2.10 Repurposing Obsolete Commercial Buildings Encourage property owner to pursue opportunities to integrate housing in underutilized commercial centers, and to reuse excess or obsolete commercial buildings for affordable housing. (New) 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. (New) AFFH AFFH Initial Draft 2023-2031 Housing Element 10-4 Initial Draft 2023-2031 Housing Element July 2022 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 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. (Source: Modified Policy HOU-4.1) Policy HE-3.2 Efficient Development Processing Explore continued improvements to the entitlement process to streamline and coordinate the processing of permits, design review, and environmental clearance. (New) Policy HE-3.3 Lot Consolidation Support lot consolidation and redevelopment. (New) Policy HE-3.4 Development Impact and Permit Fees Consider reduced fees to facilitate affordable housing development. (New) Policy HE-3.5 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. (Source: Formerly Policy HOU-6.1 modified) (Previously 3.6) 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. AFFH 10. Housing Element July 2022 Initial Draft 2023-2031 Housing Element 10-5 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. (Source: Formerly Policies HOU-3.1, 3.2, 5.1 and 6.3 modified) Policy HE-4.2 Multi-Family Housing Acquisition 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. (Source: Formerly Policy HOU-3.3 modified) 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. (Source: Formerly Policy HOU-3.4) Policy HE-4.4 Naturally Occurring Affordable Units Encourage maintaining naturally affordable housing types such as duplexes and townhomes. (New) Policy HE-4.4 Preserve Residences of Historic or Architectural Value The City shall encourage the preservation of residential buildings with historic or architectural value. (New) 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. (Source: Formerly Policy HOU-7.1 modified) 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. (Source: 2040 General Plan) AFFH AFFH AFFH Initial Draft 2023-2031 Housing Element 10-6 Initial Draft 2023-2031 Housing Element July 2022 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. (Source: Formerly Policy HOU-4.1 modified) 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. (Source: Formerly Policy HOU-4.3) 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. (Source: Formerly Policy HOU-4.2 & 6.5 modified) 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. (New) Policy HE-6.5 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). (New) 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. (Source: Formerly Action HOU-4.2 modified) AFFH AFFH AFFH AFFH 10. Housing Element July 2022 Initial Draft 2023-2031 Housing Element 10-7 10.2 Implem entation Programs Programs Implements Which Policy(ies) Responsible Supporting Department(s) Time Frame Funding Source A 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 to 10 acres that facilitate multiple- family developments affordable to lower income households in light of State, Federal and local financing programs. (Source: Formerly Action HOU- 1.8) HE-1.1 Adequate Sites HE-1.3 Infrastructure HE-1.6 Variety of Housing Choices Community Development Department Annually provide focus group or Town Hall meeting opportunities None required B No Net Loss Develop and implement an ongoing formal evaluation procedure (project-by-project) of sites identified in the Sites Inventory to maintain sufficient 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. (Source: Formerly Action HOU- 2.5 modified) HE-1.1 Adequate Sites HE-1.3 Infrastructure HE-1.5 Town Resources HE-1.6 Variety of Housing Choice Community Development Department Ongoing tracking as developments are approved None required Initial Draft 2023-2031 Housing Element 10-8 Initial Draft 2023-2031 Housing Element July 2022 Programs Implements Which Policy(ies) Responsible Supporting Department(s) Time Frame Funding Source C Additional Housing Capacity Amend the North Forty Specific Plan to increase the maximum allowable density from 20 to more than 30 and increase the total number of dwelling units allowed in the Specific Plan. (Source: New) HE-1.1 Adequate Sites HE-3.2 Efficient Development Processing Community Development Department December 2023 None required D Affordable Development on Town Owned Property Pursue opportunities to work with an affordable housing developer to construct affordable housing on Town owned property. (Source: New) HE-1.1 Adequate Sites Community Development Department Ongoing None required E 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 and explore improvements. Update the Town planning and zoning regulations and remove permit processing constraints as appropriate. (Source: Formerly Action HOU- 6.1 modified) HE-1.5 Town Resources HE-3.2 Efficient Development Processing Community Development Department Review and update regulations as appropriate at biannual years None required F Report Annually on Housing Availability Prepare an annual housing report for the review of the Town Council including information on progress made towards achieving new construction need, affordable housing conserved/developed, effectiveness of existing programs and recommendations for improvement. Consult and collaborate with non-profit providers, special need providers, and other community resources in preparation and evaluation of the report. HE-1.1 Adequate Sites HE-1.5 Town Resources HE-3.2 Efficient Development Processing HE-1.6 Variety of Housing Choices Community Development Department Annual None required 10. Housing Element July 2022 Initial Draft 2023-2031 Housing Element 10-9 Programs Implements Which Policy(ies) Responsible Supporting Department(s) Time Frame Funding Source (Source: Formerly Action HOU- 8.1 modified) G (Placeholder for additional action—if needed prior to final draft re-numbering) H (Placeholder for additional action—if needed prior to final draft re-numbering) 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. (Source: Formerly Action HOU- 8.3 modified) HE-1.3 Infrastructure Community Development Department Upon adoption of this Housing Element None required J (Placeholder for additional action—if needed prior to final draft re-numbering) K Seniors 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. (New) 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 L 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 residential buildings that provide relatively smaller, less expensive units within the existing neighborhoods. HE-1.6 Variety of Housing Choices HE-3.2 Efficient Development Processing Community Development Department Ongoing None required Initial Draft 2023-2031 Housing Element 10-10 Initial Draft 2023-2031 Housing Element July 2022 Programs Implements Which Policy(ies) Responsible Supporting Department(s) Time Frame Funding Source 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. (Source: 2040 General Plan) M (Placeholder for additional action—if needed prior to final draft re-numbering) N 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. (New) HE-1.6 Variety of Housing Choices Community Development Department Ongoing None required O Lot Consolidation The Town will conduct outreach to property owners in these areas to identify meaningful incentives to facilitate lot consolidation and redevelopment. 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-3.3 Lot Consolidation Community Development Department Within two years of Housing Element adoption None required 10. Housing Element July 2022 Initial Draft 2023-2031 Housing Element 10-11 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 to assist them in facilitating the parcel merge process in a streamlined and timely manner. (New) P Below Market Price (BMP) Program Conduct a study to evaluate the existing 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. (Source: Formerly Action HOU- 1.1 and 1.4) HE-3.5 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 Q 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 and before levying an impact fee, the Town is required to complete a nexus study that shows the linkage between new development and the increased demand for housing. (New) HE-3.4 Development Impact and Permit Fees Community Development Department Complete study by June 2024 and implement recommended actions by December 2024. None required Initial Draft 2023-2031 Housing Element 10-12 Initial Draft 2023-2031 Housing Element July 2022 Programs Implements Which Policy(ies) Responsible Supporting Department(s) Time Frame Funding Source R 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. (Source: Formerly Action HOU- 1.6 modified) HE-3.5 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 S 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. (New) HE-4.1 Property and Housing Conditions Community Development Department Annually meet with Habitat for Humanity None required 10. Housing Element July 2022 Initial Draft 2023-2031 Housing Element 10-13 Programs Implements Which Policy(ies) Responsible Supporting Department(s) Time Frame Funding Source T Development Impact and Permit Fees 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. (New) HE-3.4 Development Impact and Permit Fees Community Development Department, Parks and Public Works, Town Council January 2023 to January 2031 Staff Time U 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 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. This will serve to affirmatively further fair housing within the region by providing affordable housing within places of high opportunity. (New) HE-3.4 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 V 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. HE-2.1 Financial Resources Community Development Department, Town Council January 2023 to January 2031 Town Affordable Housing Fund Initial Draft 2023-2031 Housing Element 10-14 Initial Draft 2023-2031 Housing Element July 2022 Programs Implements Which Policy(ies) Responsible Supporting Department(s) Time Frame Funding Source Affordability covenants are essentially deed restrictions on the property that retain the affordable housing price of the unit for a certain period of time. The covenants must be in place for at least 55 years for rental properties when using BMP funds. 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 rents on these units to levels that would be affordable to very low- and low-income households. Each affordability covenant acquisition opportunity is unique because the owner may negotiate for a varying proportion of units to be restricted as well as the level of affordability. The Town will work to secure units for very low- and low-income households through this program. In order to have a successful policy or program for purchasing affordability covenants, the Town must have a legal counsel that is familiar with structuring effective agreements, as well as dedicated resources for periodic monitoring to ensure that the agreements are met. The Town 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. In order to target existing apartments, the condition of the property and the background of the property owner should be assessed. The Town may then issue a Notice of 10. Housing Element July 2022 Initial Draft 2023-2031 Housing Element 10-15 Programs Implements Which Policy(ies) Responsible Supporting Department(s) Time Frame Funding Source Funding Availability (NOFA) to announce its intentions to purchase affordability covenants and attract interest from property owners. (Source: Formerly Action HOU- 1.4 modified) W Accessory Dwelling Units Waive building fees when an ADU is deed restricted for very low- and low-income households. (Source: Formerly Action HOU- 1.2 modified) 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 X 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. (Source: Formerly Action HOU- 1.3 modified) HE-3.5 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 Y 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. (Source: Formerly Action HOU- 2.1, 2.2, and 2.4 modified) HE-3.5 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 Initial Draft 2023-2031 Housing Element 10-16 Initial Draft 2023-2031 Housing Element July 2022 Programs Implements Which Policy(ies) Responsible Supporting Department(s) Time Frame Funding Source Z 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. (Source: Formerly Action HOU- 4.6 and 1.5 modified) 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 AA 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. (Source: Formerly Action HOU- 4.7) HE-2.7 Equal Housing and Special Needs Community Development Department January 2023 to January 2031 County CDBG AB 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 HE-2.7 Equal Housing and Special Needs Community Development Department Annually None required 10. Housing Element July 2022 Initial Draft 2023-2031 Housing Element 10-17 Programs Implements Which Policy(ies) Responsible Supporting Department(s) Time Frame Funding Source procedures for requesting and granting reasonable accommodations. Review annually for trends and develop new procedures and/or materials in response to annual review. (Source: Formerly Action HOU- 6.2) AC 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. (Source: Formerly Action HOU- 6.3 modified) 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 AD 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 larger care facilities (seven or more residents) in multifamily residential zones subject to a conditional use permit. HE-1.7 Universal Design HE-2.7 Equal Housing and Special Needs HE-6.1 Fair Housing HE-6.3 Housing for Persons with Special Needs Initial Draft 2023-2031 Housing Element 10-18 Initial Draft 2023-2031 Housing Element July 2022 Programs Implements Which Policy(ies) Responsible Supporting Department(s) Time Frame Funding Source ▪ 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. (New) AE 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. (Source: Formerly Action HOU- 6.4 and 6.5 modified) 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 AF Rental Dispute Resolution Program Continue the administration of the Rental Dispute Resolution Program and consider revisions as necessary to make the program as effective as possible HE-6.6 Rental Dispute Mediation and Arbitration Ordinance Community Services Department January 2023 to January 2031 Program fees 10. Housing Element July 2022 Initial Draft 2023-2031 Housing Element 10-19 Programs Implements Which Policy(ies) Responsible Supporting Department(s) Time Frame Funding Source in protecting both tenants and landlords’ rights. (Source: Formerly Action HOU- 4.2) AG 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 Initial Draft 2023-2031 Housing Element 10-20 Initial Draft 2023-2031 Housing Element July 2022 Programs Implements Which Policy(ies) Responsible Supporting Department(s) Time Frame Funding Source (Source: Formerly Action HOU- 6.6 modified) AH 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. (Source: Formerly Action HOU- 4.4) 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 AI 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 (New) 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 AJ Reduce Parking Standards 3.5 Regulatory Incentives for Affordable Housing Community Development Department Complete study by January 2024 and implement None required 10. Housing Element July 2022 Initial Draft 2023-2031 Housing Element 10-21 Programs Implements Which Policy(ies) Responsible Supporting Department(s) Time Frame Funding Source Initiate a study to determine specific updates for the Municipal Code to address the following: ▪ Align parking requirements with the 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. (New) 2.7 Senior Housing 2.8 Equal Housing and Special Needs Municipal Code changes by June 2024 AK 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 HE-1.7 Universal Design Community Development Department Implement General Plan and Municipal Code changes by June 2024 None required Initial Draft 2023-2031 Housing Element 10-22 Initial Draft 2023-2031 Housing Element July 2022 Programs Implements Which Policy(ies) Responsible Supporting Department(s) Time Frame Funding Source housing sites contained in the inventory sites table that are in these zones must include housing as specified in the sites table; ▪ Rezone the Caltrans ROW – Site F3 to allow for residential development. (New) AL 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. (New) HE-3.5 Regulatory Incentives for Affordable Housing Community Development Department Implement General Plan and Municipal Code changes by June 2024 None required AM 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. (New) HE-4.1 Property and Housing Conditions Community Development Department January 2023 to January 2031 Town Affordable Housing Fund AN SB 35 Process Improvements Develop an SB35 checklist and written procedures for processing SB35 applications to ensure efficient and complete application processing. (Government Code HE-3.2 Efficient Development Processing HE-3.5 Regulatory Incentives for Affordable Housing Community Development Department Implement by December 2023 Staff Time 10. Housing Element July 2022 Initial Draft 2023-2031 Housing Element 10-23 Programs Implements Which Policy(ies) Responsible Supporting Department(s) Time Frame Funding Source 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. (New) AO 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. (New) HE-2.7 Equal Housing and Special Needs Community Development Department Implement by December 2023 Staff Time AP 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 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 Initial Draft 2023-2031 Housing Element 10-24 Initial Draft 2023-2031 Housing Element July 2022 Programs Implements Which Policy(ies) Responsible Supporting Department(s) Time Frame Funding Source 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. (New) AQ Transit Oriented Development Establish development standards for transit-oriented development 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. (New) HE-2.10 Policy Smart Growth Community Development Department January 2023 to January 2031 Staff Time AR 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. (Source: Formerly Action HOU- 3.1) HE-4.3 Home Affordability Preservation Community Development Department January 2023 to January 2031 None required AS 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. (Source: Formerly Action HOU- 3.2) HE-2.4 Rental Housing HE-4.1 Property and Housing Conditions Community Development Department January 2023 to January 2031 None required AT CDBG and other Housing Rehabilitation Programs HE-4.1 Property and Housing Conditions Community Development Department January 2023 to January 2031 General Fund 10. Housing Element July 2022 Initial Draft 2023-2031 Housing Element 10-25 Programs Implements Which Policy(ies) Responsible Supporting Department(s) Time Frame Funding Source Continue to participate in the County of Santa Clara Community Development Block Grant Joint Powers Authority so Town residents can participate in (Source: Formerly Action HOU- 3.3) HE-4.3 Home Affordability Preservation AU 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 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. 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 Initial Draft 2023-2031 Housing Element 10-26 Initial Draft 2023-2031 Housing Element July 2022 Programs Implements Which Policy(ies) Responsible Supporting Department(s) Time Frame Funding Source (Source: Formerly Action HOU- 3.4 modified) AV Energy Conservation Opportunities Continue to enforce State of California Title 24 requirements for energy conservation. (Source: Formerly Action HOU- 7.1) HE-5.1 Green Building Community Development Department Ongoing None required AW 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: accessibility improvements; exterior or interior home repair; repair of fencing and/or landscaping; plumbing; exterior painting; roof repair; and similar activities. (New) HE-4.1 Property and Housing Conditions HE-5.1 Green Building Community Development Department January 2023 to January 2031 Town Affordable Housing Fund AX 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. (New) HE-5.1 Green Building HE-5.2 Solar Energy Community Development Department Ongoing None required AY (Placeholder for additional program—if needed prior to final draft re-numbering) AZ 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, HE-5.1 Green Building HE-6.4 Affordable Housing Awareness Community Development Department Update list annually None required 10. Housing Element July 2022 Initial Draft 2023-2031 Housing Element 10-27 Programs Implements Which Policy(ies) Responsible Supporting Department(s) Time Frame Funding Source 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. (Source: Formerly Action HOU- 4.1 modified) BA 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 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. (Source: Formerly Acton HOU- 4.5 modified) HE-5.1 Green Building HE-5.2 Solar Energy HE-6.3 Housing for Persons with Special Needs Community Development Department January 2023 to January 2031 None required Initial Draft 2023-2031 Housing Element 10-28 Initial Draft 2023-2031 Housing Element July 2022 Programs Implements Which Policy(ies) Responsible Supporting Department(s) Time Frame Funding Source BB Senior Housing Resources Provide regularly updated senior housing resource materials at the Adult Recreation Center, Library, and Farmers Market. (Source: Formerly Action HOU- 5.1 modified) 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 BC 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. (Source: Formerly Action HOU- 6.9 modified) 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 BD Use a Variety of Communication Methods Broadcast information about available housing resources through a variety of communication methods across media, technological 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. (New) 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 BE 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 HE-2.7 Equal Housing and Special Needs Community Development Department January 2024 None required 10. Housing Element July 2022 Initial Draft 2023-2031 Housing Element 10-29 Programs Implements Which Policy(ies) Responsible Supporting Department(s) Time Frame Funding Source 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 all zone districts where single-family residential is permitted. (New) This Page Intentionally Left Blank From: Phil Koen <> Sent: Wednesday, July 27, 2022 1:58 PM To: ewalters@losgatosca.gov Cc: Jocelyn Shoopman <jshoopman@losgatosca.gov>; Joel Paulson <jpaulson@losgatosca.gov> Subject: Comments on 21 Elements draft of AFFH Hello Erin, In reviewing the draft AFFH, I would like to offer the following comments: Contributing factors – page 7 – “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”. According to California Department of Finance schedule E-5, in 2010 there were 13,050 housing units. In 2020 there were 13,637 which is an increase of 587 units. In 2010 the population of the Town was 29,413. In 2020 the population was 31,087 which is an increase of 1,674. The persons per household ratio on the incremental increase of housing was approximately 2.85 which is slightly higher than the overall ratio to 2.54. This increase can be explained by the rotation of 65 + year old residents experiencing a decrease in persons per household being replaced by an increase in persons between 45 –64 which had slightly larger ratio of persons per household. Based on this analysis, there is no conclusive data to suggest that the production of incremental housing was materially less than what would have been expected by the increase in population from 2010 to 2020. The overwhelming evidence suggests that the material increase in regional income levels has been the key contributing factor to a “tight housing market”. Also, there seems to confusion over the term “affordable housing”. For example, the draft cites a fair housing issue that “very low production of affordable and market rate housing limits housing choices of all but the highest income households”. This statement is misleading, not accurate and conflates the concept of affordability and market rate pricing for housing. The term affordable housing is generally defined as housing on which the occupant is paying no more than 30 percent of gross income for housing costs, including utilities and market rate housing is defined as the prevailing cost of housing set by the market without restrictions. These are very different concepts. Market rate housing can be affordable, based on the income group purchasing the housing. According to ABAG, 64% of households in Los Gatos have incomes greater than 100% of AMI. Of those whose income is 100% or more than AMI, 84% pay no more than 30% of gross income on housing. For this income segment, housing is “affordable”. At the opposite end of the spectrum are households earning 80% and less of AMI. In Los Gatos that is 25% of all households. For this income segment, approximately 28% pay no more than 30% of gross income on housing. Adding the two segments together, the data suggests that approximately 60% of all households in Los Gatos live in “affordable housing” (whether it be below market or market rate housing). Therefore, one needs to be very precise when using the term “affordable housing” since it is an income-based test. The proper segmentation is between below market rate and market rate housing, not affordable and market rate housing. Historically the Town has produced sufficient market rate housing as ATTACHMENT 2 demonstrated by the housing production during the 4th and 5th RHNA cycles for moderate and above moderate income levels. Where the Town has struggled is in the production of housing for very- low and low income categories. Because of the lower income levels of these groups, in order to be “affordable” the housing must be priced “below market rate” given the current market rate of housing. Therefore, to be more accurate the fair housing issue should state, the Town’s very low production of below market rate housing has materially limited housing choices for the very low and low income households. These are the income segments that have been most impacted by the increase in housing costs in the Town. Thank you. From: Phil Koen <> Sent: Monday, July 11, 2022 4:36 PM To: Joel Paulson <jpaulson@losgatosca.gov> Cc: Town Manager <Manager@losgatosca.gov>; Shelley Neis <sneis@losgatosca.gov>; ; Rick Van Hoesen () <> Subject: Jobs - Household Ratio - Staff Report June 16, 2022 - HEAB Hello Joel, I am not sure if this has been corrected, but figure 2-8 in the draft Housing Needs Assessment (see attached) that was distributed to the HEAB at the June 16, 2022, meeting is incorrectly labeled as jobs per employed resident ratio. The graph is actually taken from the ABAG MTC Housing Needs Data Report and is shown as Figure 8 (see attached). The graph should be labeled jobs-household ratio, and the supporting data can be found in the Data Packet Workbook table POPEMB-13. The actual jobs per employed resident ratio is 1.51 (and not 1.59), as reported in the ABAG MTC Housing Needs Data Report. The 1.51 ratio supports the conclusion that the Town at an aggregate level is a “net importer of workers”. However, if we disaggregate the 1.51 number, we learn that 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). The ABAG MTC data shows that the “net importer of workers” is occurring at the low-wage group, while at the high-wage group the Town is “exporting workers”. This needs to be clearly told to the HEAB. This is also demonstrated by comparing the jobs-household ratio for Los Gatos, Cupertino, City of Santa Clara, and Palo Alto. The jobs-household ratio for each of these jurisdictions is as follows: Los Gatos 1.59 Cupertino 2.6 Santa Clara 2.72 Palo Alto 4.0 This data demonstrates that the Town is “exporting” housing to “job rich” jurisdictions which have failed to provide the aggregate level of housing required to support their spectacular job growth over the past 10 years. In the Employment section of Roots Policy Research’s draft AFFH analysis (see attached) the statement is made that “Los Gatos is less of a commuter town than surrounding jurisdictions with much higher job to household ratios”. While factually correct that Los Gatos has a lower job to household ratio than the City of Santa Clara, Cupertino and Palo Alto, the statement fails to capture the full story of the data, which is the Town is “exporting” housing to these jurisdictions. It is more a statement of about the availability of housing in high job growth jurisdictions than a statement about commuting. At the heart of this is the failure of surrounding jurisdictions to supply the needed incremental housing to support the massive incremental job growth these jurisdictions have experienced over the past 10 years. It is the lack of sufficient supply of housing that is the motor driving the job-household ratio. It should also be pointed out that the 19,843 jobs and 14,573 job holders’ numbers reported in the AFFH do not agree with the 21,287 jobs and 14,115 employed residents as reported by ABAG MTC. Furthermore, the conclusion in the AFFH report that there are more jobs in the Town than employed residents does not tell the entire story, since this is at an aggregate level which masks the underlying trends. As pointed out above, this is a barbell issue with one end of the barbells having more low-wage jobs than low-wage residents, while at the other end there are more high-wage residents than high- wage jobs. There are approximately 2x more low-wage jobs than high-wage jobs in the Town, but 65% of the households have income levels greater than 100% AMI. Lastly, on page 7 of the draft AFFH report, it states that only 342 housing units have been added since 2010. I am not sure this number is correct based on the Town’s annual housing reports. In conclusion, it is critical to fully understand the underlying demographics of Los Gatos in terms of employment and wages, and the impact on affordable housing. It is because the Town is populated with a higher share of high-income earners (65% greater than 100% of AMI) than the rest of the county, that 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. This is the challenge in front of us which needs to be addressed. Thank you. Phil Koen July 7, 2022 Ms. Melanie Hanssen, Chair Los Gatos Housing Element Advisory Board C/O Joel Paulson, Community Development Director 110 East Main Street Los Gatos, California 95030 Dear Chair Hanssen: As the Los Gatos Housing Element Advisory Board considers revisions to the Housing Element this evening, I am writing to encourage you to consider eliminating the requirement for a Conditional Use Permit (CUP) to build high density residential on property zoned for high / (R-5) uses. This outdated requirement is undoubtedly hampering the Town's effort to meaningfully address the state and local housing crisis, and is contrary to modern planning principles designed to combat climate change. Our development experience over the last 25 years in multi-family residential projects gives us a unique insight into how the policies implemented in the General Plan are translated into the creation of housing. In this capacity, it is apparent that some policies, well intentioned as they may be, create onerous entitlement requirements that have the effect of delaying the introduction of housing into the community, or worse off, discourage the construction of housing in appropriate locations. One such requirement is the existing policy requiring a CUP for high density residential uses within areas designated for mixed use in the General Plan. Though this requirement was possibly grounded in sound policy when it was initially implemented, it is now outdated and inconsistent with the state and region's planning priorities which emphasize mixed use environments featuring the placement of residential uses in close proximity to commercial uses such as offices and retail. Requiring the lengthy CUP process to build high density housing is contrary to statewide priorities seeking to streamline such construction, and local regional efforts to create walkable, breathable communities. Thank you for taking the time to read this letter and consider this request. As the Task Force engages in the forward-thinking actions necessary to ensure that Los Gatos has the policies in place to foster an adequate housing supply, reconsidering the existing CUP requirement to build high density residential in areas designated for mixed use would undoubtedly help achieve the community's housing objectives. This Page Intentionally Left Blank