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Item2.Desk Item with Attachments 5 and 6 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 DESK ITEM TOWN OF LOS GATOS HOUSING ELEMENT ADVISORY BOARD REPORT DATE: August 4, 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. REMARKS: Attachment 5 contains Board Member comments. Attachment 6 contains public comments received between 11:01 a.m., Wednesday, August 3, 2022, and 11:00 a.m., Thursday, August 4, 2022. ATTACHMENTS: Previously received with the August 4, 2022, Staff Report: 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 Received with the August 4, 2022, Addendum Report: 3. Board Member Comments 4. Public Comments received between 11:01 a.m., Friday, July 29, 2022, and 11:00 a.m., Wednesday, August 3, 2022 Received with this Desk Item Report: 5. Board Member Comments 6. Public Comments received between 11:01 a.m., Wednesday, August 3, 2022, and 11:00 a.m., Thursday, August 4, 2022 This Page Intentionally Left Blank Subject: Los Gatos 2023-2031 Housing Element Thursday, August 4, 2022 Dear fellow Los Gatos Housing Element Advisory Board members, First, I apologize for missing the last meeting (I was traveling back from Europe). On reading the current draft I feel there was a lot of good work done. But one thing I find missing: any mention of the need to preserve and encourage business, especially the retail and service businesses that directly interact with residents. Maybe it is in there somewhere but I could not find it. Increasing affordable housing and overall housing are excellent goals - but not if they come at the cost of eliminating the businesses that make it so pleasant to live here. Plus, more housing and less business will boost traffic and reduce walking/biking which is counter to our I know we have discussed this in our meetings and I recall multiple people stating that retaining business was important to our vision (and our quality of life). I realize we do have a policy around encouraging Mixed-use development, but that is the only place (I could find) that touches on business at all. And that does not speak to retaining businesses. So perhaps we should add a goal or at least a policy and an implementation program around the idea that expanding housing should not come at the cost of retaining and encouraging retail and service business. Best regards, Ryan Rosenberg ATTACHMENT 5 This Page Intentionally Left Blank From: Margaret Nau <> Sent: Wednesday, August 3, 2022 8:20 PM To: Housing Element <HEUpdate@losgatosca.gov> Cc: Erin Walters <EWalters@losgatosca.gov>; Jennifer Armer <JArmer@losgatosca.gov>; Elizabeth Kromer <> Subject: Housing element meeting Aug 4th comments EXTERNAL SENDER It is true that the State of California has essentially declared an emergency regarding access to affordable housing with its regional housing needs allocation RHNA. Municipalities in the Bay Area will have to provide over 441,176 units of new housing over the next eight years starting in 2023. This is over twice the amount that was assigned during the last cycle and much of those previous identified sites were never developed. This time around the State will compel municipalities to produce the housing by carrot and stick. The carrots are access to transportation funds and grants, and ministerial review of projects that will fast track development and take out local review. Also state law provides for density bonuses for moderate to below market housing which will allow more units to be built. This incentivizes developers and homeowners to build at the highest density allowed. The sticks that the State can use are lawsuits, fines, loss of permitting ability and ministerial review reverting to the State. We really don’t want to dig in our heels against the RHNA because we will lose all ability to choose the type of housing that works for our communities. The bottom line is that we must build more housing. However, as Californians, the enjoyment of natural beauty and open space is at the core of how we like to live. What is the compromise that is acceptable to most everyone? We would propose that the solution is infill of existing properties. Whether It is a homeowner putting in an accessory dwelling unit or a commercial property owner converting a vacant building to residential this is already built on land that is underutilized. Adaptive reuse of commercial or mixed-use building can be done by rezoning efforts at the municipal level. With the pandemic and online shopping creating a sea change in residents working and shopping from home, commercial vacancy is at an all-time high of 40% nationwide. This is not just in big cities like San Francisco but also small and medium size towns like Los Gatos. We are asking that Los Gatos be flexible about adaptive reuse of commercial and mixed-use zoning in order to respond to the needs of the marketplace and of the overwhelming demand for affordable housing. I want to point out that in your Los Gatos General Plan the spirit of adaptive reuse already exists: “LU 10.1 Vacated Businesses Encourage replacement of vacated business Townwide with neighborhood commercial, multifamily, or office uses.” Rezoning for the needs of the community has occurred in the past with the rezoning of residential to commercial uses. This is noted in your city code Sec. 29.20.155. -Special considerations in review of residential conversions. We feel this is an old paradigm and that our needs have changed. All those residential homes that were turned into commercial buildings should be given the flexibility to revert to their original use as housing and all those vacant commercial spaces should be converted to residential. One way to get housing growth at a medium density which Los Gatos tends to prefer to high density is to use the recent SB 10 legislation. I have attached a fact sheet from Senator Scott Weiner’s office. The key with this is that it has to be passed by local governments in order to rezone for 10 units per parcel in ATTACHMENT 6 urban areas. From reading the City of Los Gatos General Plan it seems to identify middle density as goal for development and SB 10 may be an effective way to achieve this. My message to those of you considering the housing element is to look to where there is a pull for housing – vacant commercial space or residential backyards that could use an ADU. The push for housing is the State which can ultimately take away local control if the housing numbers are not met. It is better to get out ahead of the mandate and come up with an acceptable solution for our local communities by using existing developed land and preserving as much of the open space and natural beauty of California that make it so desirable to live here. Please consider rezoning your mixed-use commercial zoning to allow for all residential conversions. https://abag.ca.gov/sites/default/files/documents/2021-06/Consequences%20of%20Non- Compliance%20with%20Housing%20Laws.pdf Margaret Carrigan Nau Co-Founder VADU (Value-added Accessory Dwelling Unit Experts) https://www.myvadu.com/ Solving financial, environmental and housing challenges one tiny dwelling at a time. SUMMARY Senate Bill 10 allows local governments a streamlined path to zone infill neighborhoods for light touch, missing middle density — up to ten units per parcel — if they choose. PROBLEM California has descended into a suffocating housing crisis that has only been worsened by COVID-19 and its economic impacts. The state’s lack of affordable housing has contributed to mass migration out of the state, skyrocketing eviction rates, record levels of chronic homelessness, and a growing class of lower- income supercommuters unable to afford or access housing within several hours of their jobs. In addition to these crises, many California neighborhoods remain racially segregated, as the density that cities plan for is often concentrated in low-income communities of color, especially those with poor air quality. This leads to deep health and educational inequities, as well as an extreme gap in access to resources, and increased displacement pressures in these vulnerable areas. Many local governments in California are motivated independently to increase density in neighborhoods, and others are required by state law to do this as part of their Housing Element. These actions will have the effect of integrating communities across racial and socioeconomic lines, alleviating pressure on our housing supply, and creating dignified and abundant housing opportunities for young families, multigenerational households, and seniors who wish to age in place. However, various state and local laws make it extremely difficult to do these common-sense rezonings quickly – even very mild efforts are often mired in expensive, decades-long legal appeals and litigation. SOLUTION SB 10 is a simple bill that authorizes local governments to rezone neighborhoods for increased housing density, up to ten homes per parcel, if they choose to. This authorization will require that a legislative body pass a resolution to adopt the plan, and exempts that zoning action from being considered a project under the California Environmental Quality Act. To be eligible for this local action, an area must be urban infill, consistent with the definition used in Senate Bill 35 (2017), or be near high quality public transportation or a job- rich area. When the local government passes this resolution, it can choose whether the individual projects will be ministerial/by right or subject to discretionary approval. SB 10 is a powerful tool for local governments to create a path to adding modest density to address California’s housing shortage, preserves significant local control for local jurisdictions, and makes it faster, less expensive, and less risky for a city to undertake a community process to increase density in our neighborhoods. SUPPORT  California YIMBY (Sponsor)  Bay Area Rapid Transit (BART)  Los Angeles Business Council  Valley Industry and Commerce Association (VICA)  Silicon Valley Leadership Group  YIMBY Action FOR MORE INFORMATION Cassidy Denny, Legislative Aide Email: Cassidy.denny@sen.ca.gov Phone: (916) 651-4011 Senator Scott Wiener, 11th Senate District Senate Bill 10 – Local Control for Increased Housing Density This Page Intentionally Left Blank