Item2.Staff Report with Attachments 1-3
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: 10/20/2022
ITEM NO: 2 TOWN OF LOS GATOS
HOUSING ELEMENT ADVISORY BOARD REPORT
DATE: October 14, 2022
TO: Housing Element Advisory Board
FROM: Joel Paulson, Community Development Director
SUBJECT: Review of the HCD Draft Initial Review Housing Element that was Submitted to
HCD for Preliminary Review.
BACKGROUND:
On August 29, 2022, the Town of Los Gatos released the Initial Public Review Draft of the 2023 -
2031 Housing Element for a 30-day public comment period which ran from August 29, 2022, to
September 27, 2022. Per Assembly Bill 215 (AB 215) signed by the Governor on September 28,
2021, a 30-day public comment period of the Initial Public Review Draft Housing Element is
required before the Town can submit to the California Department of Housing and Community
Development (HCD) for preliminary review.
On September 15, 2022, the Housing Element Advisory Board (HEAB) held a meeting to provide
an opportunity for the public to provide verbal comments during the 30-day public review
period. Three members of the public provided verbal public comments and their comments
have been summarized in the Response to Public Comments (Attachment 2).
The public comment period for the Initial Public Review Draft of the Housing Element ended on
September 27, 2022. Town staff and the consultants prepared responses to the public
comments and made changes to the Draft Housing Element as appropriate prior to submittal to
HCD for its first preliminary review. The responses to comments are analogous to responses to
comments on an Environmental Impact Report in that they are technical in nature and must be
reviewed against the statutory requirements for Housing Elements.
On Friday, October 14, 2022, the Town submitted the Draft Initial Review Housing Element
to HCD for preliminary review. The purpose of this meeting is to review and discuss the HCD
Draft Initial Review Housing Element submittal documents including the following:
1. HCD Draft Initial Review Housing Element (Attachment 1); and
2. Response to Public Comments (Attachment 2).
PAGE 2 OF 4
SUBJECT: Review of the Submittal of the HCD Draft Initial Review Housing Element that
was Submitted to HCD for Preliminary Review
DATE: October 14, 2022
DISCUSSION:
Modifications to the HCD Draft Initial Review Housing Element include general edits based on
State Law and HCD submittal requirements, discussions with property owners, further review by
the Town’s housing consultant and the Town’s Affirmatively Furthering Fair Housing (AFFH)
consultant (Root Policy Research), and the current status of the 2040 General Plan Land Use and
Community Design Elements.
On June 30, 2022, the Town Council adopted the 2040 General Plan. As of September 27, 2022,
the Land 2040 General Plan Use and Community Design Elements are suspended pending the
results of a referendum. The 2020 General Plan Land Use and Community Design Elements will
govern during the suspension period.
The following provides a summary of modifications that have been made to the HCD Draft Initial
Review Housing Element:
1. Added Implementation Program BF to require amendments of the Zoning Code which
includes:
• Including a Housing Element Overlay Zone (HEOZ) to apply to the sites included in the
Site Inventory to modify the development standards on those sites only to meet the
Town’s RHNA and a 15 percent buffer;
• Amending the Affordable Housing Overlay Zone (AHOZ) to increase the maximum
allowable density from 20 dwelling units per acre to 40 dwelling units per acres;
• Clarifying the text of the non-residential zones with regard to housing; and
• Rezoning the Caltrans ROW – Site E3 to allow for residential development.
2. Added Implementation Program BG to require amendment of the General Plan to establish
new densities for the sites included in the Site Inventory;
3. Revised housing density for the Site Inventory to be consistent with the typical density
identified in the 2040 General Plan Residential Buildout table;
4. Removed 404 North Santa Cruz Avenue, 420 North Santa Cruz Avenue, and 430 North Santa
Cruz Avenue (Los Gatos Shopping Center) from the Site Inventory List per the property
owner’s request and therefore deleted the North Santa Cruz Avenue Area;
5. Added Site I-1, 401-409 Alberto Way to the Site Inventory as the property owner submitted a
Property Owner Interest form and a Conceptual Development Advisory Committee
Application to the Town for a mixed-use project with 54 housing units;
6. Created Appendix H, Site Inventory Form per HCD formatting requirements;
7. Updated site descriptions for each site as described in Appendix D; and
8. Updated Chapter 10 and Appendix D to provide additional information regarding AFFH data
per direction from the Town’s AFFH consultant, Root Policy Research.
PAGE 3 OF 4
SUBJECT: Review of the Submittal of the HCD Draft Initial Review Housing Element that
was Submitted to HCD for Preliminary Review
DATE: October 14, 2022
DISCUSSION (continued):
Response to Public Comments
A total of 11 written public comments and a total of three verbal comments were received
during the 30-day public comment period (Attachment 2). Staff and the Town’s Consultant
reviewed these comments carefully, provided written responses to each comment, and made
the following modifications to the Draft Housing Element:
• Added Implementation Program BH – Provide Adequate Sites for Lower Income Households
on Nonvacant and Vacant Sites Previously Identified in the 5 th Cycle Housing Element;
• Revised the housing density for the Site Inventory to be consistent with the typical density
identified in the 2040 General Plan Residential Buildout;
• Increased the density within the North Forty Specific Plan area to align with the related
Implementation Program D;
• Increased the density within the Affordable Housing Overlay Zone (AHOZ) to align with the
related Implementation Program BF; and
• Corrected employment characteristics.
Modifications made as the result of public comments have been incorporated into the following
sections of the HCD Draft Initial Review Housing Element:
• Section 10.1, Introduction;
• Section 10.2, Overview of Housing Needs and Constraints;
• Section 10.3, Site Inventory and Opportunities;
• Section 10.4, Energy and Resource Conservation;
• Section 10.5, Goals and Polices;
• Section 10.6, Implementation Programs;
• Appendix A, Affirmatively Furthering Fair Housing Reports;
• Appendix B, Housing Needs Assessment;
• Appendix C, Governmental and Non-Governmental Constraints;
• Appendix D, Site Inventory Analysis;
• Appendix F, List of Organizations Contacted; and
• Appendix H, Site Inventory Form.
NEXT STEPS:
By law, HCD has up to 90 days to complete its first review. For this reason, it was critical that
the Town submit the document as soon as possible to get the clock started in order to try to
meet the Town’s legal obligation to adopt the final Housing Element within 120 days of the
statutory deadline of January 31, 2023.
PAGE 4 OF 4
SUBJECT: Review of the Submittal of the HCD Draft Initial Review Housing Element that
was Submitted to HCD for Preliminary Review
DATE: October 14, 2022
NEXT STEPS (continued):
Based on the recent experience of surrounding jurisdictions, HCD will meet with staff at the
approximately 45-day mark to provide initial feedback on the HCD Draft Initial Review Housing
Element. This early feedback will provide an opportunity to begin work on modifications to the
HCD Draft Initial Review Housing Element.
Once HCD’s formal comments are received, staff intends to bring the HCD Draft Initial Review
Housing Element, public comments, and responses, and HCD comments to Town Council for the
Council to provide policy direction as to how best to modify the Housing Element in light of
HCD’s concerns.
Based on the experience of other California communities, the process is expected to include
multiple reviews by HCD. The HEAB will participate in the revisions to the Housing
Element. Once HCD determines and communicates that the Town’s Housing Element is ready
for certification, the formal public hearing process will occur with the Planning Commission
making a recommendation and the Town Council making the final decision.
On Thursday, November 3, 2022, the HEAB is tentatively scheduled to meet to discuss topics
likely to be included in HCD comments.
PUBLIC COMMENTS:
Attachment 3 includes public comments received between 11:01 a.m., Thursday, September
15, 2022, and 11:00 a.m. on Friday, September 9, 2022.
Although 30-day public review period is complete public comments are encouraged throughout
the Housing Element update process and can be emailed to HEUpdate@losgatosca.gov.
ATTACHMENTS:
1. HCD Initial Review Draft Submittal
2. Response to Public Comments
3. Public Comments received between 11:01 a.m., Thursday, September 15, 2022, and 11:00
a.m. on Friday, October 14, 2022
N:\DEV\HEAB\2021-2023\HEAB Staff Reports and Attachments\2022\10-20-2022\Item 2 -\Item2.Staff Report.docx
Town of Los Gatos 6 th Cycle
2023-2031 Housing Element Update
HCD Draft
Initial Review Period
October 2022
ATTACHMENT 1
This document was produced on recycled paper.
HCD DRAFT INITIAL REVIEW PERIOD
T OWN OF LOS G ATOS
6 TH C YCLE 2023-2031 HOUSING E LEMENT
O CTOBER 2022
PREPARED BY
Town of Los Gatos
Community Development Department
110 E. Main Street
Los Gatos, CA 95030
Tel 408.354.6872
EMC Planning Group Inc.
601 Abrego Street
Monterey, CA 93940
Tel 831.649.1799
Fax 831.649.8399
www.emcplanning.com
Table of Contents
October 2022 HCD Draft Initial Review Period 2023-2031 Housing Element i
10.Housing Element ......................................................................................................... 10-1
10.1 Introduction .............................................................................................................. 10-1
10.1.1 California Housing Crisis .......................................................................................... 10-2
10.1.2 Regional Housing Needs Assessment. ..................................................................... 10-2
10.1.3 Affirmative Furthering Fair Housing ....................................................................... 10-3
10.1.4 Overview of Planning and Legislative Efforts .......................................................... 10-8
10.1.5 Public Participation ................................................................................................ 10-10
10.2 Overview of Housing Needs and Constraints ............................................................ 10-16
10.2.1 Introduction ........................................................................................................... 10-16
10.2.2 Los Gatos Overview. .............................................................................................. 10-16
10.2.3 Demographics ....................................................................................................... 10-19
10.2.4 Household Characteristics ..................................................................................... 10-22
10.2.5 Housing Stock Characteristics ................................................................................ 10-24
10.2.6 Special Housing Needs ........................................................................................... 10-26
10.2.7 Governmental and Non-Governmental Constraints ............................................. 10-30
10.3 Site Inventory and Opportunities ............................................................................. 10-31
10.3.1 Introduction ........................................................................................................... 10-31
10.3.2 Sites Summary. ...................................................................................................... 10-31
10.4 Energy and Resource Conservation .......................................................................... 10-32
10.4.1 Opportunities for Energy Conservation ................................................................. 10-32
10.4.2 Energy-Related Goals and Policies. ....................................................................... 10-33
10.5 Goals and Policies ................................................................................................... 10-34
10.6 Implementation Programs ....................................................................................... 10-39
10.7 Glossary and Acronyms ........................................................................................... 10-59
Appendices
Appendix A Affirmatively Furthering Fair Housing Reports
Appendix B Housing Needs Assessment
Appendix C Governmental and Non-Governmental Constraints
Appendix D Vacant and Available Sites
Appendix E Review of Previous Housing Element
Appendix F List of Organizations Contacted
Appendix G AFFH Segregation Report Los Gatos
Appendix H Sites Inventory Form
10
10. Housing Element
October 2022 Initial Draft 2023-2031 Housing Element 10-1
This 2023-2031 Housing Element is the Town of Los Gatos’ response to meet the housing needs of our
community while meeting the State's housing goals as set forth in Article 10.6 of the California Government Code.
The California State Legislature has identified the attainment of a decent home and a suitable living environment
for every Californian as the State's major housing goal. The Los Gatos Housing Element represents a sincere
and open-minded effort to meet local and regional housing needs within the constraints of a largely built-out
community, limited land availability, and extraordinarily high costs of land and housing. The Housing Element
serves as Chapter 10 of the Town’s 2040 General Plan.
A copy of the Town’s 2015-2023 Housing Element can be found at this link:
https://www.losgatosca.gov/1735/General-Plan---Housing-Element
10.1 Introduction
Pursuant to State law, the Housing Element must be updated periodically according to statutory deadlines. This
6th Cycle Housing Element covers the planning period 2023 through 2031 and replaces the Town's 5th Cycle
Housing Element that covered the period 2015 through 2023.
Per State Housing Element law, the document must be periodically updated to:
▪Outline the community’s housing production objectives consistent with State and regional growth
projections;
▪Describe goals, policies, and implementation programs to achieve local housing objectives;
▪Examine the local need for housing with a focus on special ne eds populations;
▪Identify adequate sites for the production of housing serving various income levels ;
▪Analyze potential constraints to new housing production;
▪Evaluate the Housing Element for consistency with other General Plan elements; and
▪Evaluate Affirmatively Furthering Fair Housing.
A Housing Element is considered to be out of compliance with the State’s Housing Element law if one of the
following applies:
▪It has not been revised and updated by the statutory deadline; or
▪Its contents do not substantially comply with the statutory requirements.
HCD Draft Initial Review 2023-2031 Housing Element
10-2 HCD Draft Initial Review 2023-2031 Housing Element October 2022
Repercussions for a jurisdiction which does not comply with the Housing Element Law include:
▪Limited access to State Funding.
▪Vulnerability to litigation from housing rights’ organizations, developers, and the Department of Housing
and Community Development (HCD), resulting in the following potential consequences:
a.The court may order the jurisdiction to bring its Housing Element into compliance within 120 days;
b.Suspension of a jurisdiction’s authority to issue building permits or grant zoning changes, variances, or
subdivision map approvals;
c.The court may step in and approve housing projects; and
d.If a jurisdiction faces a court action stemming from its lack of compliance and either loses or settles the
case, it often must pay substantial attorney fees to the plaintiff’s attorneys in addition to the fees paid
to its own attorneys.
10.1.1 California’s Housing Crisis
The 6th Cycle Housing Element Update comes at a critical time because California is experiencing a housing
crisis. As is the case for all jurisdictions in California, Los Gatos must play its part in meeting the demand for
housing. In the last Housing Element cycle (2015 to 2023), Los Gatos’ Regional Housing Needs Allocation
(RHNA) called for 619 new housing units; however, as of December 31, 2021, only 81 percent of these housing
units have been permitted (502 units). Of those constructed, the large majority were affordable only to
households making more than the Town’s area median income (AMI). In 2022, this amounted to $168,500 for a
family of four.
Without immediate action, the housing crisis will only get worse. In the 20-year period (2020 to 2040), Santa Clara
County is projected to add 169,450 jobs, which represents a 15 percent increase. Los Gatos is projected to add
nearly 1,030 jobs in the same period, a five percent increase. These changes will increase demand for housing
across all income levels. The Town and region must identify ways to significantly increase housing production, or
risk worsening the burden for existing lower income households. Many lower income households do not have the
means to move to a new location of employment and are faced with unsustainable increases in housing cost.
The lack of affordable housing has constrained the Silicon Valley economy as well-educated workers have
become increasingly mobile in searching for better jobs and a higher quality of life.
If Los Gatos and the region become more competitive in attracting high-skilled workers and increasingly
unaffordable to lower income workers and seniors, then social and economic segregation will worsen, only
exacerbating historic patterns of housing discrimination, racial bias, and segregati on. This potentiality has
become so acute in recent years that the California Legislature addressed the issue with new legislation in 2018.
Assembly Bill (AB) 686 requires all State and local agencies to explicitly address, combat, and relieve disparities
resulting from past patterns of housing segregation to foster more inclusive communities. This is commonly
referred to as Affirmatively Furthering Fair Housing (AFFH). The legislation applies to all Housing Elements
revised after January 1, 2021.
10.1.2 Regional Housing Needs Allocation
The Plan Bay Area 2050 Final Blueprint forecasts that the nine Bay Area counties will add 1.4 million new
households between 2015 and 2050. For the eight-year time frame covered by this Housing Element Update,
HCD has identified the region’s housing need as 441,176 units. The total number of housing units assigned by
HCD is separated into four income categories that cover housing types for all income levels, from very low-
income households to market rate housing.1 This calculation, known as the Regional Housing Needs
1 HCD divides the RHNA into the following four income categories: Very Low income: 0-50 percent of AMI, Low income: 50-80 percent of AMI, Moderate
income: 80-120 percent of AMI, and Above Moderate income: 120 percent or more of AMI.
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-3
Determination (RHND), is based on population projections produced by the California Department of Finance as
well as adjustments that incorporate the region’s existing housing need.
Almost all jurisdictions in the Bay Area received a larger RHNA this cycle compared to the last cycle, primarily due
to changes in State law that led to a considerably higher RHND compared to previous cycles.
On January 12, 2022, HCD approved the Association of Bay Area Government’s (ABAG) adopted RHNA
Methodology. For Los Gatos, the RHNA to be planned for this cycle is 1,993 units, an increase from the last
cycle. Table 10-1 shows the RHNA, including breakdown by affordability levels, for Los Gatos for the period 2023
through 2031.
Table 10-1 Regional Housing Needs Allocation
Income Group Percentage of AMI Share
Extremely Low Income 0-30 268
Very Low Income 31-50 269
Low Income 51-80 310
Moderate Income 81-120 320
Above Moderate Income Over 120 826
Total 1,993
10.1.3 Affirmatively Furthering Fair Housing
In 2018, AB 686 established an independent State mandate to address AFFH. AB 686 extends requirements for
Federal grantees and contractors to “affirmatively further fair housing,” including requirements in the Federal Fair
Housing Act, to public agencies in California. Affirmatively furthering fair housing is defined specifically as taking
meaningful actions that, taken together, address significant disparities in housing needs and in access to
opportunity by replacing segregated living patterns with truly integrated and balanced living patterns; transforming
racially and ethnically concentrated areas of poverty into areas of opportunity; and fostering and maintaining
compliance with civil rights and fair housing laws.
AB 686 requires public agencies to:
▪Administer their programs and activities relating to housing and community development in a manner to
affirmatively further fair housing;
▪Not take any action that is materially inconsistent with the obligation to affirmatively further fair housing ;
▪Ensure that the program and actions to achieve the goals and objectives of the Housing Element
affirmatively further fair housing; and
▪Include an assessment of fair housing in the Housing Element.
The requirement to AFFH is derived from The Fair Housing Act of 1968, which prohibited discrimination
concerning the sale, rental, and financing of housing based on race, color, religion, national origin, or sex and was
later amended to include familial status and disability. The 2015 U.S. Department of Housing and Urban
HCD Draft Initial Review 2023-2031 Housing Element
10-4 HCD Draft Initial Review 2023-2031 Housing Element October 2022
Development (HUD) Rule to Affirmatively Further Fair Housing and California AB 686 (2018) both mandate that
each jurisdiction takes meaningful action to address significant disparities in housing needs and access to
opportunity. AB 686 requires that jurisdictions incorporate AFFH into their Housing Elements, which includes
inclusive community participation, an assessment of fair housing, a site inventory reflective of AFFH, and the
development of goals, policies, and programs to meaningfully address local fair housing issues.
An AFFH analysis was prepared by Root Policy Research and is included as an appendix to this Housing
Element (see Appendix A).
Defining Segregation
Segregation is the separation of different demographic groups into concentrated geographic locations or
communities, meaning that groups are unevenly distributed across geographic space. Appendix A examines two
spatial forms of segregation: neighborhood level segregation within a local jurisdiction; and Town level
segregation between jurisdictions in the Bay Area.
Neighborhood level segregation (within a jurisdiction, or intra-Town): Segregation of race and income groups can
occur from neighborhood to neighborhood within a Town. For example, if a local jurisdiction has a population that
is 20 percent Latinx, but some neighborhoods are 80 percent Latinx while others have nearly no Latinx residents,
that jurisdiction would have segregated neighborhoods.
Town level segregation (between jurisdictions in a region, or inter -jurisdiction): Race and income divides also
occur between jurisdictions in a region. A region could be very diverse with equal numbers of White, Asian,
Black, and Latinx residents, but the region could also be highly segregated with each jurisdiction consisting solely
of one racial group.
There are many factors that have contributed to the generation and maintenance of segregation. Historically,
racial segregation stemmed from explicit discrimination against people of color, such as restrictive covenants,
redlining, and discrimination in mortgage lending. This history includes many overtly discriminatory policies made
by Federal, State, and local governments. Segregation patterns are also affected by policies that appear race-
neutral, such as land use decisions and the regulation of housing development.
Segregation has resulted in vastly unequal access to public goods such as quality schools, neighborhood
services and amenities, parks and playgrounds, clean air and water, and public safety. Segregation has lasting
generational affects that target low-income and minority communities. Unequal access to public goods
disproportionately affects undeserved communities, leading to lower levels of educational attainment, higher
morbidity rates, and higher mortality rates.
Segregation Patterns in the Bay Area
Across the San Francisco Bay Area, White residents and above moderate-income residents are significantly more
segregated from other racial and income groups (see Appendix B). The highest levels of racial segregation occur
between the Black and White populations. The analysis completed for Appendix A indicates that the amount of
racial segregation both within Bay Area cities and across jurisdictions in the region has decreased since the year
2000. This finding is consistent with recent research from the Othering and Belonging Institute at UC Berkeley,
which concluded that, “[a]lthough seven of the nine Bay Area counties were more segregated in 2020 than they
were in either 1980 or 1990, racial residential segregation in the region appears to have peaked around the year
2000 and has generally declined since.” However, compared to cities in other parts of California, Bay Area
jurisdictions have more neighborhood level segregation between residents from different racial groups.
Additionally, there is also more racial segregation between Bay Area cities compared to other regions in the State.
The Federal Fair Housing Act prohibits discrimination in housing on the basis of race or color, national origin,
religion, sex, familial status, and disability. Figure 10-1 on the following page shows the number of HCD Fair
Housing Inquiries for the period 2013 through 20 21.
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-5
Figure 10-1 HCD Fair Housing Inquiries (2013- 2021)
Source: California Department of Housing.
Segregation and Land Use
It is difficult to address segregation patterns without an analysis of both historical and existing land use policies
that impact segregation patterns. Land use regulations influence what kind of housing is built in a county, city,
town, or neighborhood. These land use regulations in turn impact demographics, and they can be used to affect
the number of houses in a community, the number of people who live in the community, the wealth of the people
who live in the community, and where within the community they reside. Land use regulations have led to
disparities among neighborhoods based on class and race.
Segregation in the Town of Los Gatos
▪As of 2020, White residents are the most geographically concentrated compared to other racial groups in
Los Gatos, as measured by the isolation index. White residents live in neighborhoods where they are less
likely to come into contact with other racial groups.
▪Among all racial groups, the White population’s isolation index value has changed the most over time,
becoming less segregated from other racial groups between 2000 and 2020.
▪According to the dissimilarity index, within Los Gatos, racial segregation is most significant between Black
and White populations. 2 However, this dissimilarity index 3 value is not a reliable data point due to small
population size.
2 The analysis conducted for this report suggests that dissimilarity index values are unreliable for a population group if that group represents
approximately less than 5% of the jurisdiction’s total population. ABAG/MTC recommends that when cities have population groups that are less than 5%
of the jurisdiction’s population (see Figure B-4 in Appendix B) the assessment could focus on the isolation index or Thiel’s H-Index to gain a more accurate
understanding of neighborhood-level racial segregation in their jurisdiction.
3 The “index of dissimilarity” is the most commonly used and accepted method of measuring segregation, and compares how evenly one population sub-
group is spread out geographically compared to another population sub-group.
HCD Draft Initial Review 2023-2031 Housing Element
10-6 HCD Draft Initial Review 2023-2031 Housing Element October 2022
▪According to the Theil H-Index,4 neighborhood racial segregation in Los Gatos increased between 2010
and 2020. Neighborhood income segregation stayed about the same between 2010 and 2015.
▪Above moderate-income residents are the most segregated compared to other income groups in Los
Gatos. Above moderate-income residents live in neighborhoods where they are less likely to encounter
residents of other income groups.
▪Among all income groups, the above moderate-income population’s segregation measure has changed
the most over time, becoming less segregated from other income groups between 2010 and 2015.
▪According to the dissimilarity index, segregation between lower income residents and residents who are
not lower income has increased between 2010 and 2015. In 2015, the income segregation in Los Gatos
between lower income residents and other residents was higher than the average value for Bay Area
jurisdictions.
Figures 10-2 and 10-3 identify HCD Fair Housing Inquiries by bias for the period 2013 through 2021 and a list
of Fair Housing Assistance organizations within Santa Clara County. Figure 10-2 shows that a total of eight fair
housing inquiries for Los Gatos were submitted with two submittals citing race as a bias and six cases citing no
specific bias.
Figure 10-2 HCD Fair Housing Inquiries by Bias, January 2013-March 2021
Source: California Department of Housing and Community Development AFFH Data Viewer
4 The Theil H-Index is a statistic primarily used to measure economic inequality and other economic phenomena.
Jurisdiction
San Jose 39 9 9 8 0 3 0 146 9 111 225
Santa Clara 2 2 4 4 0 0 0 26 1 12 40
Sunnyvale 7 1 3 0 0 0 0 17 1 16 29
Palo Alto 3 1 3 0 0 1 0 18 1 9 26
Gilroy 3 1 0 0 0 0 0 11 1 4 15
Morgan Hill 3 2 1 0 0 0 0 6 0 6 12
Campbell 3 1 0 0 0 0 0 7 0 5 11
Mountain View 1 0 1 0 0 0 0 9 0 6 11
Los Gatos 0 0 2 0 0 0 0 6 1 5 8
Cupertino 2 1 0 0 0 0 0 4 1 2 7
Milpitas 0 0 0 0 0 0 0 6 0 2 6
Saratoga 0 0 0 0 0 0 0 1 0 0 1
Los Altos 0 0 0 0 0 0 0 0 0 0 0
Los Altos Hills 0 0 0 0 0 0 0 0 0 0 0
Monte Sereno 0 0 0 0 0 0 0 0 0 0 0
TotalDisabilityRace
Familial
Status
National
Origin Religion Sex Color
Failure
to
Respond
None
Cited
Decision
Not To
Persue
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-7
Figure 10-3 Fair Housing Assistance Organizations, Santa Clara County
Source: Los-Gatos-Housing-Resources-Guide (losgatosca.gov)
Name
Project Sentinel Northern California
1490 El Camino
Real, Santa Clara,
CA 95050
(800) 339-6043 https://www.housing.org/
Los Gatos Rental
Dispute
Resolution
Program C/O
Project Sentinel
Los Gatos
1490 El Camino
Real, Santa Clara,
CA 95050
(800) 339-6043 https://www.housing.org/
Housing and
Economic Rights
Advocates
State of California
1814 Franklin St.
Ste. 1040 Oakland,
CA 94612
(510) 271-8443 https://www.heraca.org
Bay Area Legal
Aid - Legal Advice
Line
Parts of Santa Clara
County
2 West Santa Clara
Street, 8th Floor,
San Jose, CA 95113
(408) 850-7066 https://www.baylegal.org
Senior Adults
Legal Assistance
(SALA)
Santa Clara County
160 E Virginia
Street, Ste. 260, San
Jose, CA 95112
(408) 295-5991 www.sala.org
Asian Law
Alliance Silicon Valley
184 East Jackson
Street, San Jose, CA
95112
(408) 287-9710 www.asianlawalliance.org
California
Department of
Fair Employment
and Housing
State of California
2218 Kausen Dr.
Ste. 100 Elk Grove,
CA 95758
(916) 478-7251 https://www.dfeh.ca.gov
Law Foundation
of Silicon Valley
Greater Silicon
Valley, Santa Clara
County
152 N. 3rd St. #3
San Jose, CA 95112 (408) 293-4790 https://lawfoundation.org
WebsiteService Area Address Phone
HCD Draft Initial Review 2023-2031 Housing Element
10-8 HCD Draft Initial Review 2023-2031 Housing Element October 2022
Regional Segregation
▪Los Gatos has a higher percentage of White residents than other jurisdictions in the Bay Area as a whole,
a lower percentage of Latinx residents, a lower percentage of Black residents, and a lower percentage of
Asian and Pacific Islander residents.
▪Regarding income groups, Los Gatos has a lower percentage of very low-income residents than other
jurisdictions in the Bay Area as a whole, a lower percentage of low-income residents, a lower percentage
of moderate-income residents, and a higher percentage of above moderate-income residents.
10.1.4 Overview of Planning and Legislative Efforts
This section provides an overview of planning and legislative efforts that provide the context for development of
the 6th Cycle Housing Element.
2040 General Plan
On June 30, 2022, the Town Council adopted the 2040 General Plan and accompanying Environmental Impact
Report (EIR). As of September 27, 2022, The Land Use and Community Design Elements of the 2040 General
Plan are suspended pending the results of a referendum. In the interim, the Town ’s 2020 General Plan Land Use
and Community Design Elements will govern during the suspension period.
Effectiveness of Previous Housing Element
The Town of Los Gatos 5th Cycle Housing Element (2015 to 2023) identified a RHNA of 619 housing units
between January 31, 2015, and January 1, 2023. As of December 31, 2021, 502 new units were added to the
Town’s housing stock in this cycle, achieving approximately 81 percent of the Town’s RHNA. Units affordable to
moderate- and lower-income households that were created during the planning period include senior rental units
(North Forty Phase I), an attached condominium (Union Avenue), single-family homes (Knowles Avenue)
produced through the Town’s Below Market Program (BMP), and accessory dwelling units (ADU). See Appendix
E for a complete review and analysis of Los Gatos’s 5th Cycle Housing Element (2015-2023).
New State Laws Affecting Housing
While the Town has taken steps throughout the 5th Cycle to increase housing production locally, the State passed
numerous laws to address California’s housing crisis during the same period. As the State passes new legislation
in the remainder of the 5th Cycle and during the 6th Cycle, the Town will continue to amend the Municipal Code; to
monitor and evaluate policies and programs designed to meet State requirements; and to proactively implement
new policies and programs to help increase housing production in the Town.
In 2019, several bills were signed into law that include requirements for local density bonus programs, the
Housing Element, surplus lands, ADU streamlining, and removing local barriers to housing production. The Town
has and will continue to implement changes required by State law, through amendments to the Los Gatos
Municipal Code. The following is a summary of recent legislation and proposed Town activities that will further
the Town’s efforts to increase housing production during the 6th Cycle. Please see the previous section for a
discussion of AB 686 (Affirmatively Furthering Fair Housing).
Streamlining for Subdividing Single-Family Lots
Senate Bill (SB) 9, the California Housing Opportunity and More Efficiency (HOME) Act, streamlines the process
for a homeowner to create a duplex or subdivide an existing lot. Any new housing created as a result of this bill
must meet a specific list of qualifications that protects historic districts, preserves environmental quality and the
look of communities, and prevents tenants from being displaced. This legislation will enable homeowners to
create intergenerational wealth, and provide access to more rental and ownership options for working families
who would otherwise be priced out of neighborhoods.
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Incentive for Accessory Dwelling Units
AB 68, AB 587, AB 671, AB 881, and SB 13 further incentivize the development of ADUs, through streamlined
permits, reduced setback requirements, increased allowable square footage, reduced parking requirements, and
reduced fees. The Town has amended its regulations and procedures pursuant to State law. In addition, the
Town increased the allowable floor area ratio by an additional ten percent for development of ADUs.
Density Bonus Update
AB 1763 requires jurisdictions to provide a density bonus to development projects that restrict 100 percent of their
units as affordable to lower and moderate-income households.
Objective Standards for Multi-Family and Mixed-Use Development Applications
The Town of Los Gatos is developing objective standards for the review of multi-family housing and mixed-use
development applications. This effort is in response to State legislation requiring jurisdictions to adopt objective
standards and to implement them in a streamlined review of qualifying housing pr ojects. Objective standards are
defined under State law as “standards that involve no personal or subjective judgement by a public official and are
uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by
both the development applicant or proponent and the public official prior to submittal” (California Government
Code, Section 65913.4). Objective standards are a powerful tool that allow communities to respond to State
housing laws that are reducing local control of development. They provide an opportunity to ensure that the
appearance of new development is compatible with the Town’s vision , while reinforcing objectivity in the decision-
making process.
Low-Barrier Navigation Centers
A "Low Barrier Navigation Center" is a low-barrier, service-enriched shelter focused on moving people into
permanent housing that provides temporary living facilities while case managers connect individuals experiencing
homelessness to income, public benefits, health services, shelter, and housing. AB 101 requires jurisdictions to
allow “low-barrier navigation centers” by-right in areas zoned for mixed-uses and in non-residential zones
permitting multi-family uses if the center meets specified requirements. Implementation Program BD has been
included pursuant to the requirements of AB 101.
Surplus Public Land
AB 1255 and AB 1486 seek to identify and prioritize State and local surplus lands available for housing
development that are affordable to lower income households. The Town has not identified surplus lands through
the sites inventory analysis and will report on these lands if identified through the Housing Element Annual
Progress Reports.
Accelerated Housing Production
AB 2162 and SB 2 address various methods and funding sources that jurisdictions may use to accelerate housing
production.
Priority Processing
SB 330 enacts changes to local development policies, permitting, and processes that will be in effect through
January 1, 2025. SB 330 places new criteria on the application requirements and processing times for housing
developments; prevents localities from decreasing the housing capacity of any site, such as through downzoning
or increasing open space requirements, if such a decrease would preclude the jurisdiction from meeting its RHNA
housing targets; prevents localities from establishing non-objective standards; and requires that any proposed
demolition of housing units be accompanied by a project that would replace or exceed the total number of units
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demolished. Additionally, any demolished units that were occupied by lower income households must be
replaced with new units affordable to households with those same income levels.
Housing and Public Safety
In response to SB 379, SB 1035, SB 99, and AB 747, local jurisdictions must update their Safety Element to
comprehensively address climate adaptation and resilience and identify evacuation routes. These updates are
triggered by any General Plan or Housing Element Update that occurs after January 1, 2014. The Town has
conducted this update through its recent General Plan Update, so that it can direct future development into areas
that avoid or reduce unreasonable risks, while also providing needed housing and maintaining other community
planning goals.
10.1.5 Public Participation
The primary purpose of this section is to describe the effort made by the Town of Los Gatos to engage all
economic segments of the community (including residents and/or their representatives) in the development and
update of the Housing Element. The 6th Cycle RHNA numbers are a significant change for all California
communities, and the success of the update process is dependent on a robust, inclusive, and meaningful
community outreach and engagement program. The COVID-19 pandemic has complicated community outreach
efforts, but the pandemic has also catalyzed the development of new digital tools that have brought interactive
engagement to a new level. The following section outlines efforts taken by the Town of Los Gatos to engage the
community in the Housing Element Update process. The summary below illustrates the efforts that the Town has
employed to reach the community for input and community engagement as part of the 2023-2031 Housing
Element Update process to date:
▪Postcards sent to all property owners and tenants in the Town for a Housing Element Update Community
Meeting (17,446 in total).
▪Announcements provided in the local newspaper for all Housing Element Advisory Board (HEAB)
meetings, community meetings, joint study sessions, and the 30-day public review period of the Initial
Public Review Draft Housing Element (Los Gatos Weekly).
▪17 pop-up informational tables at the Los Gatos Farmers’ Market
▪Information table at the Town Community Event (Spring in the Green).
▪Social posts on five platforms, including Facebook, Instagram, Twitter, Nextdoor, and the What’s New
page on the Town’s website for all Housing Element meetings, interactive on-line engagement, and public
engagement opportunities.
▪Public notices for Housing Element Advisory Board (HEAB) meetings and community meetings posted at
Town Hall and the Library.
▪Targeted email messaging that sends email updates to the Town’s Notify Me subscribers for the 2040
General Plan Update and Housing Element Update.
▪100 Property Owner Interest Forms mailed to all property owners on the Site Inventory.
▪Online advertisements for each Housing Element meeting and interactive on-line engagement
opportunities on the Town’s website, the Town’s General Plan Update website, and the Town’s Housing
Element website.
▪Use of the Balancing Act, a housing simulation tool, available on the Town’s dedicated Housing Element
Update website for online public engagement.
▪201 submissions to the online site surveys and 42 completions of the Balancing Act housing simulation
tool.
▪Seven community group meetings for the 2040 General Plan Update, including discussion regarding
density and affordable housing.
▪Eleven HEAB meetings held to date.
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▪Town Council meeting approving the draft Site Inventory.
▪One community meeting hosted by the Santa Clara County Planning Collaborative for Santa Clara County
municipalities.
▪A public meeting hosted by West Valley Community Services; Envisioning an Inclusive Los Gatos:
Housing Element 101.
▪A joint study session with the Town Council and Planning Commission to discuss housing growth options
for the 2040 General Plan.
▪A joint study session with the Town Council, Planning Commission, and HEAB with panelists from both
market rate and non-profit developers.
▪Participation in a Santa Clara County Equity Advisory Group Meeting.
Staff expects to continue this level of outreach and eng agement throughout the remainder of the Housing Element
Update process, including: information on the Town’s website; newspaper ads; social media posts; email
notifications; a pop-up tables at the farmers market, library, and public events; and the website for the Housing
Element Update (engagelosgatoshousing.com). Through staff’s engagement with the public at the Farmers’
Market, staff has heard community support for: housing options to meet the needs of seniors and large families;
displacement prevention of existing naturally affordable housing units ; housing of essential workers; and lower
wage earners; and the Town incentives to attract affordable housing projects.
Housing Element Advisory Board
On August 3, 2021, the Los Gatos Town Council adopted Resolution 2021-032 establishing the HEAB to serve as
an advisory board for preparation of the Housing Element Update. On September 21, 2021, the Town Council
appointed four at-large members to the HEAB, which when combined with the nine members of the existing
General Plan Committee (GPC), formed a 13-member oversight board.
Housing Element Website
The Town developed a focused Housing Element Update website “Engage Los Gatos Housing” to provide a
forum for the Town’s online community to engage in the Housing Element Update process. The site provides an
interactive place for the public to learn about and be a part of the Town’s work on housing and to help guide
decision makers on the direction of future housing. This online platform has been open throughout the Town’s 6th
Cycle Housing Element Update and updated regularly with key documents, key meeting dates and times,
engagement opportunities, and other information.
Balancing Act Online Public Engagement
The Balancing Act tool was added on the Town’s Housing Element website to allow the public to participate and
provide site selection feedback on the online platform. The Balancing Act is an online simulation-based tool for
public engagement on potential housing sites. The Balancing Act provided an interactive map showing where
potential housing could be placed to fulfill the Town’s RHNA.
Site Surveys Online Public Engagement
As a companion to the Balancing Act mapping tool opportunity to gather public comments about potential housing
sites, surveys were made available for each individual site. The dedicated Housing Element Update website
included opportunities to learn more about the Housing Element Update process and how to contribute to the
process.
Property Interest Forms
Letters were sent to owners of properties that were considered by the Town to be candidates for housing sites.
The letters included a description of the Housing Element Update process and an invitation to include their
property on the Sites Inventory List.
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Community Meetings
On August 25, 2021, Town staff participated with other municipalities as part of the Santa Clara County Housing
Collaborative to conduct the Let’s Talk Housing meeting, a regional outreach effort. The online event introduced
community participants to the Housing Element Update process. Town staff presented an introduction to the
Housing Element Update and hosted breakout Zoom room discussions to learn more about community members
housing experiences, needs challenges, and opportunities. There were 35 participants.
On March 2, 2022, West Valley Community Services (WVCS) hosted an online community engagement event,
Envisioning an Inclusive Los Gatos: Housing Element 101. The online event provided an opportunity for the
public to discuss opportunities with panelists for the Town to improve the housing community for everyone,
ensuring inclusive, diverse, and affordable housing in Town. Community members, Housing Element experts,
nonprofits, housing developers, and clients with experience in homelessness and affordable housing joined the
conversation, discussing housing challenges, opportunities, and personal experiences. The featured panelists
included:
▪Ande Flower, Principal Planner at EMC Planning Group.
▪Alison Cingolani, Policy and Research Associate at SV@Home.
▪Bianca Neumann with EAH Housing.
▪Two WVCS clients.
Housing Element Advisory Board Public Meetings (HEAB)
The HEAB is an advisory board created for the purposes of advising Town staff, providing a public forum for
public involvement, and making recommendations to the Planning Commission and Town Council on updates to
the Housing Element. The HEAB serves as an advisory body that provides input on specific tasks associated
with the Housing Element Update. The role of the HEAB is to:
▪Provide guidance on the development of the Housing Element Update;
▪Provide an additional forum for public involvement;
▪Forward milestone products to Town Council;
▪Review the Draft Housing Element; and
▪Make recommendations to the Planning Commission and Town Council.
The HEAB meeting agendas allow for two opportunities for public comment, at the beginning and end of each
meeting, to provide the public an opportunity to react to the topics proposed and discussed. The public is invited
to participate and provide comments at the HEAB meetings or in writing. Meetings are advertised through social
media, the Town’s website, the Housing Element Update website, newspaper advertisements, postings at Town
Hall and the Library, and emails to the General Plan Notify Me list. The following meetings were held via Zoom
with public participation and will continue through the Housing Element Update process.
▪October 21, 2021: Kickoff Meeting and Housing Element Overview.
▪December 16, 2021: Review and Discussion of Technical Appendices.
▪February 17, 2022: Review and Discussion of the Housing Site Inventory Analysis Process.
▪April 21, 2022: Review and Discussion of the Housing Element Site Inventory.
▪May 5, 2022: Review and Discussion of the Housing Element Site Inventory.
▪May 19, 2022: Review and Discussion of the Housing Element Site Inventory .
▪June 16, 2022: Review and Discussion of the Housing Element Draft Goals, Policies, and Programs.
▪July 7, 2022: Review and Discussion of the Housing Element Draft Goals, Policies, and Programs.
▪August 4, 2022: Review and Discussion of the Housing Element Draft Goals, Policies, and Programs.
▪August 18, 2022: Review and Discussion of the full preliminary Housing Element Draft.
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▪September 15, 2022: Receive Public Comments on the Initial Public Review Draft Housing Element.
In addition, the following groups have been invited to join the Housing Element Advisory Board Meetings:
▪Los Gatos Chamber of Commerce.
▪West Valley Community Services.
▪Los Gatos Interfaith Community.
▪Public and Private Schools.
▪Los Gatos Anti-Racism Coalition.
▪Los Gatos Rotary Club.
▪Los Gatos Kiwanis Club.
▪Los Gatos Lions Club.
▪Architects, Designers, and Market and Affordable Housing Developers who ty pically do work within Town.
▪The Town’s Senior Services Committee.
The list of organizations that were contacted to participate in the Housing Element Update process is provided in
Appendix F.
Joint Study Sessions
On December 7, 2021, the Town Council and the Planning Commission held a Joint Study session via Zoom to
discuss housing growth options and related analyses for Planning Commission and Town Council consideration
of the 2040 General Plan Update. The public was encouraged to continue to submit co mments and participate in
the 2040 General Plan Update, including any preferences for housing growth options.
On April 6, 2022, the Town Council, Planning Commission, and HEAB participated in a Joint Study session via
Zoom titled “Nuts and Bolts of Affordable Housing.” Several residents requested that the Town Council convene
a study session with the Planning Commission and HEAB to learn more about the challenges of building
affordable housing, particularly the financial and legal realities. The residents provided discussion questions to
the panel members. The Town Council, Planning Commission, and HEAB members had the opportunity to ask
questions of panel members. The panelists included the following:
▪Josh Selo, West Valley Community Services Executive Director served as moderator for the panel
discussion.
▪Barbara Kautz, Goldfarb Lipman Attorneys, provided the current legal la ndscape for Housing Elements.
▪Don Caprobres, Harmonie Park Development, provided expertise in market rate development and
partnerships with affordable housing developers .
▪Andrea Osgood, Eden Housing, provided hands-on knowledge of affordable housing development and
working with market rate developers.
▪Chris Neale, The CORE Companies, provided experience with both market and affordable housing
development.
Public Hearings
On June 7, 2022, the Town Council considered and approved the HEAB’s recommendation for the draft Site
Inventory at a public hearing via Zoom. There will be more public hearings to come following the first review by
HCD.
Justice, Diversity, Equity, and Inclusion
The Town of Los Gatos values justice, equity, diversity, and inclusion (JEDI). The Town works proactively to
ensure the rights and opportunities of everyone in Los Gatos and opposes any attempts to undermine the safety,
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security, and rights of any members of the community. The Town promotes equal treatment, equitable
distribution of and access to resources, and engagement in issues affecting the lives of residents, workers, and
visitors. The Town does not tolerate discrimination, racial injustice, or police brutality. The Town works toward
realizing the values of diversity, equity, and inclusion by taking specific actions to become a more inclusive
community.
In May of 2017, the Town Council affirmed a commitment to Los Gatos as a diverse, supportive, equitable, and
inclusive community.
On June 5, 2020, the Town affirmed its commitment to stand in solidarity with the black community with a
Proclamation from the Mayor.
On June 17, 2020, the Mayor signed the Obama Foundation’s Mayor’s Pledge, c ommitting to review Police
Department standards, report back to the community, and work on reforms.
On June 19, 2020, the Town launched a new webpage , “Becoming an Inclusive Community,” dedicated to
outlining the shared values of justice, diversity, equity , and inclusion. In naming the new webpage “Becoming an
Inclusive Community,” the Town acknowledged that there is work to do ; and by clearly stating the commitment to
inclusivity and diversity, the Town strives to take the steps needed to reach that goal. The dedicated webpage
can be viewed at www.LosGatosCA.gov/Inclusivity and is kept updated on a regular basis with Town efforts and
current information.
On July 30, 2020, the General Plan Update Advisory Committee (GPAC) held a special meeting to review and
discuss the topics including racial, social, and environmental justice in the General Plan. As a result of this
meeting, the first Element of the 2040 General Plan is a new Racial, Social, and Environmental Justice E lement.
In 2020, the Town hosted three community workshops via teleconference to foster dialogue on racial and social
justice and how Los Gatos can be more welcoming for all. The three conversations covered police reform, and
housing. The inclusivity webpage contains full video recordings, presentations, and other information associated
with these conversations.
Pop-up Community Outreach
Farmers Market Informational Booth
Town staff hosted a 2040 General Plan Update and Housing Element Update informational booth at the Los
Gatos Farmers’ Market on Sundays from 9:00 a.m. to 12:00 p.m. on the following dates:
▪June 27, 2021.
▪July 18, 2021.
▪August 8, 2021.
▪August 29, 2021.
▪September 19, 2021.
▪October 10, 2021.
▪October 31, 2021.
▪November 21, 2021.
▪December 19, 2021.
▪January 19, 2022.
▪February 13, 2022.
▪March 13, 2022.
▪April 10, 2022.
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▪May 22, 2022.
▪June 12, 2022.
▪September 4, 2022.
▪October 9, 2022.
The Farmers’ Market is held at the Town’s Plaza Park located in downtown Los Gatos. The informational booth
provided an opportunity for planning staff to answer the public’s questions regarding housing opportunities and
challenges within the Town, possible housing sites in Town, the General Plan Update and Housing Element
Update process, and key participation opportunities. Informational handouts were provided to members of the
public with links to the Town’s General Plan Update and Housing Element Update websites. Staff interacted with
members of the community, including both Town residents and non-residents, at the Farmers Market. Staff
members will continue hosting this informational booth once a month through the end of the Housing Element
Update process.
Spring Into Green Informational Booth
On April 24, 2022, Town staff hosted an informational booth for the 2040 General Plan Update and Housing
Element Update at the Town of Los Gatos’ Spring into Green event. The outdoor event celebrates Keep Los
Gatos Beautiful Month, environmental sustainability, and Earth Day. The festivities included environmentally
focused exhibitor booths, a tree planting ceremony, the weekly Los Gatos Farmers Market, family -friendly
activities, food, and live music. The informational booth provided an opportunity for Town staff to answer the
public’s questions regarding housing opportunities and challenges within the Town, possible housing sites in
Town, the General Plan Update and Housing Element Update process and key participation opportunities.
2040 General Plan Update
On June 30, 2022, the Town Council adopted the 2040 General Plan. As mentioned above, the 2040 General
Plan includes a new chapter: Racial, Social, and Environmental Justice. The Racial, Social, and Environmental
Justice Element includes goals, policies, and implementation programs that encourage and support local efforts to
increase participation in the local political process and to improve local conditions relative to racial, social, and
environmental justice issues. The themes covered in this element lay the foundation for creating a more equitable
and inclusive Town for all residents of Los Gatos. The Racial, Social, and Environmental Justice Element focuses
on the empowerment of the community, and especially of the members of the community who have not been
previously heard.
General Plan Update Advisory Committee (GPAC)
To help guide the update to the General Plan, the Town Council appointed a GPAC. The GPAC was composed
of the Town’s General Plan Committee (GPC) and three additional residents. The GPC includes two Town
Council members, three Planning Commissioners, and four residents. The GPAC served to review and discuss
issues, opportunities, and the development the Draft 2040 General Plan. The GPAC held more than 35 public
meetings throughout the General Plan Update process, listening to community input and contributing to the
development of Land Use Alternatives, and the content of the General Plan document.
Public Participation to Affirmatively Furthering Fair Housing
The Los Gatos public participation program was also responsive to AFFH, which requires local jurisdictions to
conduct public outreach to equitably include all stakeholders in the housing element public participation program
(see Section 10.1.3 for more complete information on AFFH).
Tribal Consultation
This public participation effort also includes formal consultation, pursuant to Government Code §6535 2.3, with
representatives from nine Native American tribes that are present and active in Santa Clara County.
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10.2 Overview of Housing Needs and Constraint s
This section summarizes the housing needs of Los Gatos as determined through the comprehensive housing
data assessment and analysis presented in Appendix B and serves as the basis for housing goals, policies, and
implementation programs. The housing summary gives an overview of population trends: characteristics of the
housing stock; housing affordability; and special needs households.
10.2.1 Introduction
The Bay Area continues to see growth in both population and jobs, which means more housing of various types
and sizes is needed to ensure that residents across all income levels, ages, and abilities have housing
opportunities. While the number of people drawn to the region over the past 30 years has steadily increased,
housing production has stalled, due to the high cost of land, contributing to the housing shortage that communities
are experiencing. In many communities, this has resulted in residents being priced out, increased traffic
congestion caused by longer commutes, and fewer people across income levels being able to purchase homes or
meet surging rents.
10.2.2 Los Gatos Overview
As California works to face its housing crisis, the State of California has adopted rules to ensure that the burden
of housing an economically diverse and growing population is shared proportionately among all California
communities. The Town is committed to meeting the housing challenge, while preserving the essential character
of the community. The Town faces some of the following conditions as summarized below :
▪Population growth trends in the Town are significantly lower than the County and regional rates.
▪The Town has more than double the County share of White population and a correspondingly smaller
percent of minority populations.
▪The Town has a higher share of high-income earners than the County and Bay Area.
▪The income gap between lower income residents and higher income residents in the Town is higher than
the average value for Bay Area jurisdictions.
▪Poverty rates are very low in the Town.
▪The Town is a net importer of workers.
▪Housing prices in the Town are extremely high. Home prices are valued at more than $2 million, and
rental prices increased by 61 percent from 2009 to 2019.
▪The Town does not have any public housing and only a small portion of the Town contains Housing
Choice Voucher usage.
Figures 10-4 and 10-5 on the following pages show the concentration of public housing buildings with less than
seven units and buildings with eight to 35 units in Santa Clara County ; and Housing Choice vouchers by census
tract, respectively.
The remainder of this section provides an overview of the demographics, housing characteristics, and special
housing needs that provide the context for Los Gatos’s 6th Cycle Housing Element Update. A more complete
report on housing needs is presented in Appendix B.
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Figure 10-4 Public Housing Buildings, Santa Clara County
Source: California Department of Housing and Community Development AFFH Data Viewer
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Figure 10-5 Housing Choice Vouchers by Census Tract
Source: California Department of Housing and Community Development AFFH Data Viewer
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10.2.3 Demographics
Population Trends
Generally, the population of the Bay Area continues to grow because of natural growth and because the strong
economy draws new residents to the region. The population of the Town of Los Gatos increased by 10 percent
from 2000 to 2020, which is below the 14.8 percent growth rate of the Bay Area. In 2020, the population of the
Town was estimated to be 31,439 according to the Department of Finance. The population of the Town makes up
1.6 percent of Santa Clara County.5 In the Town of Los Gatos, roughly 13.5 percent of its population moved
during the past year, a number that is roughly the same as the regional rate of 13.4 percent. Table 10-2 shows
population growth trends for the Town, Santa Clara County, and the Bay Area as a whole.
Table 10-2 Population Growth Trends
Geography 1990 1995 2000 2005 2010 2015 2020
Los Gatos 27,357 28,751 28,592 28,872 29,413 30,807 31,439
Santa Clara County 1,497,577 1,594,818 1,682,585 1,752,696 1,781,642 1,912,180 1,961,969
Bay Area 6,020,147 6,381,961 6,784,348 7,073,912 7,150,739 7,595,694 7,790,537
Source: California Department of Finance, E-5 series
Population by Age
The distribution of age groups in a town or city shapes what types of housing the community may need in the near
future. An increase in the older population may mean there is a developing need for more senior housing options,
while higher numbers of children and young families can point to the need for more family housing options and
related services. There has also been a move by many to age-in-place or downsize to stay within their
communities, which can mean more multi-family and accessible units are also needed.
In 2019, the median age in the Town was 47 years, an increase from the median age of 41 in 2000. The youth
population of the Town under the age of 18 was 6,767 and the senior population 65 and older was 6,393. These
age groups represent 22 percent and 20.8 percent, respectively, of the Town’s population. This reflects a
nationwide aging trend related to the large baby boom generation, as well as local characteristics. The Town of
Los Gatos is a community with a high quality of life that encourages residents to stay throughout their lives. Aging
in place, attracting retirees, and high housing costs that favor older, more financially stable households all
contribute to the aging trend in the Town. Figure 10-6 shows the distribution of senior and youth population by
race.
5 To compare the rate of growth across various geographic scales, Table 10-2 shows population for the jurisdiction, county, and region indexed to the
population in the year 1990. This means that the data points represent the population growth in each of these geographies relative to their populations in
1990. NOTE: Universe: Total population; For more years of data, please refer to the Data Packet Workbook, Table POPEMP-01.
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Figure 10-6 Senior and Youth Population by Race, Los Gatos, 2000-2019
Source: ABAG Housing Needs Data Workbook
Population by Race/Ethnicity
Understanding the racial makeup of a town, city, and region is important for designing and implementing effective
housing policies and programs. These patterns are shaped by both market factors and government actions, such
as exclusionary zoning, discriminatory lending practices , and displacement that has occurred over time and
continues to impact communities of color today.6
Figures 10-7 and 10-8 show the population distribution by race and ethnicities in the Bay Area, Santa Clara
County, and specifically Los Gatos, through the period 2000 to 2019. Since 2000, the percentage of residents in
the Town of Los Gatos identifying as “White, Non-Hispanic” has decreased by 13.3 percentage points. At the
same time the percentage of residents of all “Other Race of Multiple Races, Non-Hispanic” has increased. In
absolute terms, the “Asian/API, Non-Hispanic” population increased the most, while the “White, Non-Hispanic”
population decreased the most.
In 2019, 72.3 percent of the Town’s population was White while 0.9 percent was African American, 14.8 percent
was Asian, and 7.9 percent was Latinx. People of color in Los Gatos comprise a proportion below the overall
proportion in the Bay Area as a whole.7
6 See, for example, Rothstein, R. (2017). The color of law: a forgotten history of how our government segregated America. New York, NY & London, UK:
Liveright Publishing.
7 The Census Bureau’s American Community Survey accounts for ethnic origin separate from racial identity. The numbers reported here use an accounting
of both, such that the racial categories are shown exclusive of Latinx status, to allow for an accounting of the Latinx population regardless of racial identity.
The term Hispanic has historically been used to describe people from numerous Central American, South American, and Caribbean countries. In recent
years, the term Latino or Latinx has become preferred. This report generally uses Latinx, but occasionally when discussing US Census data, we use Hispanic
or Non-Hispanic, to clearly link to the data source.
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Figure 10-7 Population by Race and Ethnicity, Los Gatos, 2019
Source: ABAG Housing Needs Data Workbook
Figure 10-8 Population by Race and Ethnicity, Los Gatos, 2000-2019
Source: ABAG Housing Needs Data Workbook
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Employment
Town residents most commonly work in the Financial and Professional Services industry. From January 2010 to
January 2021, the unemployment rate in the Town decreased by three percentage points. Since 2010, the
number of jobs located in the jurisdiction increased by 4,440 (28.8 percent).
Additionally, the jobs-household ratio in the Town has increased from 1.32 in 2002 to 1.59 jobs per household in
2018, which means the Town has more jobs than housing. A surplus of jobs relative to residents suggests the
need to import workers. Los Gatos has more low-wage jobs than low-wage residents (where low-wage refers to
jobs paying less than $25,000). At the other end of the wage spectrum, the Town has more high-wage residents
than high-wage jobs (where high-wage refers to jobs paying more than $75,000).
10.2.4 Household Characteristics
Extremely Low-Income Households
Despite the economic and job growth experienced throughout the region since 1990, the income gap has
continued to widen. California is one of the most economically unequal states in the nation, and the Bay Area has
the highest income inequality between high- and low-income households in the State.
HUD annually updates it Section 8 Program income limits to reflect changes in median family income (MFI) levels
for different size households and income limits for extremely low -, very low-, and low-income households. HCD
must then annually update its income limits based on HUD’s annual revisions. California law and State Income
Limits reference AMI that, pursuant to Health & Safety Code 50093(c), means the MFI of a geographic area,
estimated by HUD for its Section 8 Program.
In Los Gatos, 65 percent of households make more than 100 percent of the AMI 8, compared to nine percent
making less than 30 percent of AMI, which is considered extremely low-income. Regionally, more than half of all
households make more than 100 percent AMI, while 15 percent make less than 30 percent AMI. In Santa Clara
County, 30 percent AMI is equivalent to an annual income of $39,900 for a family of four. Many households with
multiple wage earners, including food service workers, full-time students, teachers, farmworkers, public safety
officers, and healthcare professionals can fall into lower AMI categories due to relatively stagnant wages in many
industries.
Throughout the region, there are disparities between the incomes of homeowners and renters. Figures 10-9 and
10-10 show the AMI distribution and the poverty rate among different races and ethnicities in the Los Gatos area.
Typically, the number of low-income renters greatly outpaces the amount of housing available that is affordable
for these households. In Los Gatos, the largest proportion of both renters and homeowners is found in the
greater than 100 percent of AMI group.
8 Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine
county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa
Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County),
Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area
where this jurisdiction is located. Households making between 80 and 120 percent of the AMI are moderate-income, those making 50 to 80 percent are
low income, those making 30 to 50 percent are very low income, and those making less than 30 percent are extremely low income. This is then adjusted
for household size.
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Figure 10-9 Area Median Income by Race and Ethnicity, Los Gatos, 2019
Source: ABAG Housing Needs Data Workbook
People of color are more likely to experience poverty and financial instability as a result of Federal and local
housing policies that have historically excluded them from the same opportunities extended to White residents.9
These economic disparities also leave communities of color at higher risk for housing insecurity, displacement , or
homelessness. In Los Gatos, Hispanic or Latinx and Other Race or Multiple Races (Hispanic and Non-Hispanic)
residents experience the highest rates of poverty, followed by White (Hispanic and Non-Hispanic) residents.
Figure 10-10 Poverty Rate by Race and Ethnicity, Los Gatos, 2019
Source: ABAG Housing Needs Data Workbook
9 Moore, E., Montojo, N. and Mauri, N., 2019. Roots, Race & Place: A History of Racially Exclusionary Housing the San Francisco Bay Area. Hass Institute.
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Tenure
The number of residents who own their homes compared to those who rent their homes can help identify the level
of housing insecurity (i.e., ability for individuals to stay in their homes) in a town , city, and region. Generally,
renters may be displaced more quickly if prices increase. As of 2019, there are a total of 12,083 housing units in
Los Gatos, and fewer residents rent than own their homes: 35 percent versus 65 percent. By comparison, 43.6
percent of households in Santa Clara County are renters, while 43.9 percent of Bay Area households rent their
homes.
Homeownership rates often vary considerably across race and ethnicity in the Bay Area and throughout the
country. These disparities not only reflect differences in income and wealth , but also stem from Federal, State,
and local policies that limit access to homeownership for communities of color, while facilitating homebuying for
White residents. While many of these policies, such as redlining, have been formally disbanded, the impacts of
race-based policy are still evident across Bay Area communities. In Los Gatos, 84 percent of Black households
owned their homes, while homeownership rates were 72 percent for Asian households, 3 9 percent for Latinx
households, and 65 percent for White households.
In many communities, homeownership rates for households in single-family homes are substantially higher than
the rates for households in multi-family housing. In Los Gatos, 86 percent of households in detached single-
family homes are homeowners, while 13 percent of households in multi-family housing are homeowners.
Displacement
Because of increasing housing prices, displacement is a major concern in the Bay Area. Displacement has
severe impacts on low- and moderate-income residents. When individuals or families are forced to leave their
homes and communities, they also lose their support network.
The University of California (UC), Berkeley has mapped all neighborhoods in the Bay Area, identifying their risk
for gentrification. It finds that in Los Gatos there are no households that live in neighborhoods that are
susceptible to or experiencing displacement and none live in neighborhoods at risk of or undergoing gentrification.
Equally important, some neighborhoods in the Bay Area do not have housing appropriate for a broad section of
the workforce. UC Berkeley estimates that all households in Los Gatos live in neighborhoods where low-income
households are likely to be excluded due to prohibitive housing costs .10 Figure B-18 in Appendix B shows
household displacement risk and tenure.
10.2.5 Housing Stock Characteristics
Number of Homes
The number of new homes built in the Bay Area has not kept pace with the demand, resulting in longer
commutes, increasing prices, and exacerbating issues of displacement and homelessness. The number of
homes in Los Gatos increased by four percent from 2010 to 2020, which is below the growth rate for Santa Clara
County and below the growth rate of the region’s housing stock during this time period.
Between 2015 and 2021, 502 housing units were issued permits in Los Gatos, which represents approximately 81
percent of the RHNA number of 619 units assigned in the 5th Cycle Housing Element. Approximately 66 percent
of permits issued in Los Gatos were for above moderate-income housing, 24 percent were for moderate-income
housing, and 10 percent were for low- or very low-income housing.
10 More information about this gentrification and displacement data is available at the Urban Displacement Project’s webpage:
https://www.urbandisplacement.org/. Specifically, one can learn more about the different gentrification/displacement typologies shown in Figure 18 at
this link: https://www.urbandisplacement.org/sites/default/files/typology_sheet_2018_0.png. Additionally, one can view maps that show which
typologies correspond to which parts of a jurisdiction here: https://www.urbandisplacement.org/san-francisco/sf-bay-area-gentrification-and-
displacement.
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Housing Type
It is important to have a variety of housing types to meet the needs of a community today and in the future. In
2020:
▪60 percent of homes in Los Gatos were single-family detached.
▪13 percent were single-family attached.
▪9 percent were small multi-family (two to four units).
▪18 percent were medium or large multi-family (five or more units).
Between 2010 and 2020, the number of single-family units increased more than multi-family units. Los Gatos has
a higher portion of detached single-family homes than other jurisdictions in the region.
The housing stock of Los Gatos is generally in good condition, and few homes require r econstruction or
rehabilitation. The high quality of life, desirable location, walkable neighborhoods, and school system have
provided financial incentive for property owners to rehabilitate homes and maintain them.
Home Prices
A diversity of homes at all income levels would create opportunities for all members of the Los Gatos community
to live in Town.
▪Ownership – The largest proportion of homes had a value greater than $2 million in 2019. Home prices
increased by 98.4 percent from 2010 to 2020.
▪Rental Prices – The typical contract rent for an apartment in Los Gatos was $2,270 in 2019. Rental prices
increased by 61 percent from 2009 to 2019. To rent a typical apartment without cost burden, a household
would need to make $90,960 per year.11
Cost Burden
The U.S. Department of Housing and Urban Development (HUD) considers housing to be affordable for a
household if the household spends less than 30 percent of its income on housing costs. A household is
considered “cost-burdened” if it spends more than 30 percent of its monthly income on housing costs, while those
who spend more than 50 percent of their income on housing costs are considered “severely cost -burdened.” In
Los Gatos, 20 percent of renter households and 16 percent of owner households spend 30 percent to 50 percent
of their income on housing, while 22 percent of renter households and 12 percent of owner households are
severely cost-burdened and use the majority of their income for housing.
Minority communities are more likely to experience poverty and financial instability as a result of Federal and local
housing policies that have historically excluded them from the same opportunities extended to White residents.
As a result, they often pay a greater percentage of their income on housing, and in turn , are at a greater risk of
housing insecurity.
“Other Race” or “Multiple Races, Non-Hispanic” residents are the most cost-burdened, with 28 percent spending
30 to 50 percent of their income on housing, and Hispanic or Latinx residents are the most severely cost-
burdened, with 22 percent spending more than 50 percent of their income on housing.
Neighborhood
100 percent of residents in Los Gatos live in neighborhoods identified as “Highest Resource” or “High Resource”
areas by State-commissioned research, while none live in areas identified by this research as “Low Resource” or
“High Segregation and Poverty” areas. These neighborhood designations are based on a range of indicators
11 Note that contract rents may differ significantly from, and are often lower than, current listing prices.
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covering areas such as education, poverty, proximity to jobs and economic opportunities, low pollution levels, and
other factors.12
10.2.6 Special Housing Needs
Some population groups may have special housing needs that require specific program responses, and these
groups may experience barriers to accessing stable housing due to their specific housing circumstances . In Los
Gatos, nine percent of residents have a disability and may require accessible housing. Additionally, six percent of
Los Gatos households are larger households with five or more people, and likely need larger housing units with
three bedrooms or more. Eight percent of households are female-headed families, which are often at greater risk
of housing insecurity.
Large Households
Large households, with five or more persons, often have different housing needs than smaller households. If a
town or city’s rental housing stock does not include larger apartments, large households who rent could end up
living in overcrowded conditions. Large families are generally served by housing units with three or more
bedrooms, of which there are 7,760 units in Los Gatos, as shown in Figure 10-11. Among these large units, most
are owner-occupied, and few are renter-occupied, indicating the Town’s rental housing stock lacks larger
apartments.
Figure 10-11 Housing Units by Number of Bedrooms and Tenure, Los Gatos, 2019
Source: ABAG Housing Needs Data Workbook
Female-Headed Households
Households headed by one person are often at greater risk of housing insecurity, particularly female -headed
households, who may be supporting children or a family with only one income. Female-headed households with
children may face particular housing challenges, with gender inequality resulting in lower wages for women.
Moreover, the added need for childcare can make finding a home that is affordable more challenging.
In Los Gatos, the largest proportion of households is Married-Couple Family Households at 58 percent of the
total, while Female-Headed Family Households make up 8 percent of all households. Additionally, 36 Female-
Headed Households with Children (eight percent) fell in the Below Poverty Level category, while 26 Female-
Headed Households without Children (five percent) fell in the Below Poverty Level category.
12 For more information on the “opportunity area” categories developed by HCD and the California Tax Credit Allocation Committee, see this website:
https://www.treasurer.ca.gov/ctcac/opportunity.asp. The degree to which different jurisdictions and neighborhoods have access to opportunity will likely
need to be analyzed as part of new Housing Element requirements related to affirmatively furthering fair housing. ABAG/MTC will be providing
jurisdictions with technical assistance on this topic this summer, following the release of additional guidance from HCD.
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Figure 10-12 Percent of Children in Female Households, 2015-2019
Source: California Department of Housing and Community Development AFFH Data Viewer
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Senior Households
Senior households often experience a combination of factors that can make accessing or keeping affordable
housing a challenge. Seniors, defined as persons who are 65 years or older, may live on fixed incomes and may
have disabilities, chronic health conditions, and/or reduced mobility. Seniors who rent may be at even greater risk
for housing challenges than those who own, due to income differences between these groups.
When cost-burdened seniors are no longer able to make house payments or rent payments, displacement from
their homes can occur, putting further stress on the local rental market or forcing residents out of their community.
Understanding how seniors might be cost-burdened is of particular importance due to their special housing needs,
particularly for low-income seniors. Of seniors making less than 30 percent of AMI, 74 percent are spending the
majority of their income on housing. For seniors making more than 100 percent of AMI, 86 percent are not cost -
burdened and spend less than 30 percent of their income on housing.
People with Disabilities
People with disabilities face additional housing challenges. Encompassing a broad group of individuals living with
a variety of physical, cognitive, and sensory impairments, many people with disabilities live on fixed incomes and
are in need of specialized care, yet often rely on family members for assistance due to the high cost of care.
When it comes to housing, people with disabilities are not only in need of affordable housing , but accessibly
designed housing, which offers greater mobility and opportunity for independence. Unfortunately, the need
typically outweighs what is available, particularly in a housing market with such high demand. People with
disabilities are at a high risk for housing insecurity, homelessness, and institutionalization, particularly when they
lose aging caregivers. Overall, nine percent of people in Los Gatos have a disability of some kind.
State law also requires a Housing Element to examine the housing needs of people with developmental
disabilities. Developmental disabilities are defined as severe, chronic, and attributed to a mental or physical
impairment that begins before a person turns 18 years old. This can include Down’s Syndrome, autism, epilepsy,
cerebral palsy, and mild to severe intellectual disability. Some people with developmental disabilities are unable
to work, rely on supplemental security income, and live with family members. In addition to their specific housing
needs, they are at increased risk of housing insecurity after an aging parent or family member is no longer able to
care for them.13 In Los Gatos, there are 123 persons with a developmental disability. Out of this nine percent of
the Town’s population, 50 are children under the age of 18 (41 percent) and 73 are adults (60 percent). The most
common living arrangement for individuals with disabilities in Los Gatos is the home of a parent/family/guardian.
Figure 10-13 Share of Population by Disability Status, 2019
Source: ABAG Housing Needs Data Workbook
13 For more information or data on developmental disabilities in your jurisdiction, contact the Golden Gate Regional Center for Marin, San Francisco and
San Mateo Counties; the North Bay Regional Center for Napa, Solano and Sonoma Counties; the Regional Center for the East Bay for Alameda and Contra
Costa Counties; or the San Andreas Regional Center for Santa Clara County.
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Figure 10-14 Percent of Population with a Disability by Census Tract, 2019
Source: California Department of Housing and Community Development AFFH Data Viewer
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Homelessness
Homelessness remains an urgent challenge in many communities across the State, reflecting a range of social,
economic, and psychological factors. Rising housing costs result in increased risks of community members
experiencing homelessness. Many residents who have found themselves housing insecure have ended up
homeless in recent years, either temporarily or longer term. Addressing the specific housing needs of the
unhoused population remains a priority throughout the region, particularly since homeless ness is
disproportionately experienced by people of color, people with disabilities, those struggling with addiction , and
those dealing with traumatic life circumstances.
In Santa Clara County, the most common type of household experiencing homelessness is those without children
in their care. Among households experiencing homelessness that do not have children, 87 percent are
unsheltered. Of homeless households with children, most are sheltered in emergency shelter s.
People of color are more likely to experience poverty and financial instability as a result of Federal and local
housing policies that have historically excluded them from the same opportunities extended to White residents.
Consequently, people of color are often disproportionately impacted by homelessness, particularly Black
residents of the Bay Area.
In Santa Clara County, White (Hispanic and Non-Hispanic) residents represent the largest proportion of residents
experiencing homelessness and account for 44 percent of the homeless population, while making up 45 percent
of the overall population.
Farmworkers
Across the State, housing for farmworkers has been recognized as an important and unique concern.
Farmworkers generally receive wages that are considerably lower than other jobs and may have temporary
housing needs. Finding decent and affordable housing can be challenging, particularly in the current housing
market.
In Los Gatos, there were no reported students of migrant workers in the 2019-20 school year. The trend for the
region for the past few years has been a decline of more than two percent in the number of migrant worker
students since the 2016-17 school year. The change at the County level is a 50 percent decrease in the number
of migrant worker students since the 2016-17 school year.
10.2.7 Governmental and Non-Governmental Constraints
Housing development is affected by government regulations and other non-governmental forces, such as the cost
of land and building materials and the availability and cost of housing loans. A Housing Element is required to
investigate the impact of these constraints as they present themselves in the municipality in which the Housing
Element is being prepared. Please see Appendix C for a full discussion governmental and non-governmental
constraints in the Town of Los Gatos.
Revisions to the Zoning Code are necessary to achieve consistency with changes in State housing law.
Anticipated zoning changes are detailed in the implementation programs found in Section 10.5 of this Housing
Element.
In terms of non-governmental constraints, land costs will remain a constraint to affordable housing . To help offset
this constraint, programs to use Town-owned lands, such as Town parking lots could be utilized. Due to the cost
of construction materials, the Town may subsidize affordable housing projects with available funds dedicated to
housing in order to increase affordable housing inventory.
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10.3 Site Inventory and Opportunities
This section summarizes the housing needs of the Town as determined through the comprehensive housing data
assessment and analysis presented in Appendix D and serves as the basis for housing goals, policies, and
actions. The housing summary gives an overview of population trends, characteristics of the housing stock,
housing affordability, and special needs households.
10.3.1 Introduction
The Plan Bay Area 2050 Final Blueprint 14 forecasts that the nine-county Bay Area will add 1.4 million new
households between 2015 and 2050. For the eight-year time frame covered by this Housing Element Update,
HCD has identified the region’s housing need as 441,176 units . The total number of housing units assigned by
HCD is separated into four income categories that cover housing types for all income levels, from very low-
income households to market rate housing. This calculation, known as the RHNA, is based on population
projections produced by the California Department of Finance as we ll as adjustments that incorporate the region’s
existing housing need. The adjustments result from recent legislation requiring HCD to apply additional
adjustment factors to the baseline growth projection from California Department of Finance, in order fo r the
regions to get closer to healthy housing markets. To this end, adjustments focus on the region’s vacancy rate,
level of overcrowding and the share of cost-burdened households and seek to bring the region more in line with
comparable ones. Compared to previous cycles, these new laws governing the methodology for how HCD
calculates the RHNA resulted in a significantly higher number of housing units for which the Bay Area must plan
compared to previous cycles.
10.3.2 Sites Summary
The vacant, partially vacant, and underutilized sites identified in this report are sufficient to accommodate Los
Gatos’ Regional Housing Needs Allocation for the 6th Cycle planning period. The sites also accommodate the
recommended buffer of 15 percent above RHNA, which would equal a capacity of approximately 299 additional
units. This “cushion” for capacity above the base RHNA number is highly recommended because of the State’s
no-net-loss policy, which precludes jurisdictions from approving development that results in an overall housing
site deficit. The “cushion” essentially provides a degree of flexibility for policy makers as they make development
decisions. Many of the sites identified in this report have existing uses that would need to be demolished before
new housing could be constructed.
For communities like Los Gatos that are largely built-out and surrounded on all sides by other communities,
redevelopment and densification is the only practical solution to providing a fair share of future housi ng for the
San Francisco Bay Area. By its nature, such redevelopment is more costly and more time consuming than
building new units on vacant land. To offset these constraints, higher densities are proposed in some areas.
These higher densities act as a market incentive to offset the added cost and time required to build new housing
on redeveloped sites. Property owner interest will be pivotal for facilitating single -family site opportunities and
policies to add housing through SB 9, which allows for up to four units on a property zoned for single-family
residences. Table 10-3 provides a summary of the number of vacant and underutilized housing sites included in
the Site Inventory for the Town of Los Gatos, and how they compare to the RHNA allocation plus a 15 percent
buffer.
14 Plan Bay Area 2050 is a long-range plan charting the course for the future of the nine-county San Francisco Bay Area. It covers four key issues: the
economy, the environment, housing and transportation.
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Table 10-3 Summary of Vacant and Underutilized Housing Sites
Item Very Low Low Moderate Above
Moderate Total
Total Estimated Housing for Sites in
Inventory 618 360 388 1,005 2,371
RHNA 537 310 320 826 1,993
Buffer (15 %) 81 46 48 124 299
RHNA + Buffer 618 356 368 950 2,292
Difference Between Housing Estimate and
RHNA + Buffer 0 4 20 55 79
SOURCE: EMC Planning Group, Inc; Town of Los Gatos
10.4 Energy and Resource Conservation
This section summarizes background information and actions being undertaken by the Town of Los Gatos to
address energy and resource conservation. The information is excerpted from Chapter 8 (Environment and
Sustainability Element) of the 2040 General Plan. For a full discussion of energy-related issues, please see
Chapter 8, Section 8.6 (Energy) of the 2040 General Plan.
10.4.1 Opportunities for Energy Conservation
With the escalation in energy prices, consumers and builders have once again become more aware of energy
costs. The Town must balance between development and environmental stewardship to maintain a strong
economy and, at the same time, protect the environment. The following section highlights building standards
and conservation codes contributing to that success.
Title 24 of the California Administrative Code sets forth mandatory energy standards for new development and
requires adoption of an "energy budget." In turn, the home building industry must comply with these standards
while localities are responsible for enforcing the energy conservation regulations. In 2015, the Town adopted a
Solar Energy Code for the purpose of reducing energy costs for new residential developments and adopted an
energy budget. In addition, State law (both the Residential Building Code and CalGreen) have standards that
significantly reduce energy use in new residential construction.
Increasing energy costs, persistent drought, and climate change have reshaped how Californians think when it
comes to buying new homes. Solar roof panels have become more commonplace over the past several decades,
with both State and Federal tax credits available. Energy-efficient appliances and water wise landscaping have
become amenities of choice for homebuyers. Developers can make the most of this paradigm shift by embracing
“green” building practices that incorporate the energy and water efficiencies that consumers desire as well as
environmentally friendly construction that minimizes waste and maximizes the use of resources.
Pacific Gas and Electric (PG&E) distributes electricity throughout Los Gatos, with supplies purchased from Silicon
Valley Clean Energy (SVCE). PG&E supplies natural gas to the community as well. The Town is committed to its
partnership with other local communities under the umbrella of SVCE. Through this partnership, Los Gatos
residents and businesses receive carbon-free electricity at lower rates than those that arise from fossil fuel
consumption. SVCE works to innovate and implement new clean energy programs and presents many of these
innovations at community meetings, Earth Day events, and presentations to businesses. SVCE’s 2020
Community Benefits Summary indicates Los Gatos achieved the following results:
▪$813,000 in on-bill savings for Los Gatos SVCE customers.
▪14,700 households and businesses served.
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▪99 percent reduction in electric utility-related emissions (34,897,000 pounds greenhouse gas emissions
avoided by providing clean energy).
▪$29,900 in cash payments to customers for generating surplus solar energy.
Achieving these goals adds to the overall GHG reduction strategy, with a focus on lowering dependence on
carbon-based fuels and energy sources. Energy efficiency involves a careful balance of assessing energy
sources, educating the public on home and business renewable energy use, implementing energy efficiency
strategies, and encouraging and incentivizing widespread and ongoing implementation of those strategies. This
in turn translates into lower ongoing costs to homeowners and renters.
10.4.2 Energy-Related Goals and Policies
As required by State housing law, the Housing Element must analyze energy conservation opportunities in
residential development. In the following section, Goal HE-5 and its related policies and actions address energy
conservation in residential development in Los Gatos.
The relevant Environment and Sustainability Element goals and policies in the 2040 General Plan are:
▪Carbon-Neutral Energy (ENV-11.1). Support SCVE to continue to procure carbon-neutral energy for long-
term and short-term supplies, including renewable resources.
▪Energy Efficiency in Municipal Facilities (ENV 11.2). Invest in cost-effective energy efficiency and energy
conservation programs in municipal facilities.
▪Future Demand Reduction (ENV 11.3). Explore cost-effective, reliable, and feasible energy efficiency and
demand reduction opportunities and continue to use the Sustainability Plan to include education programs
for these opportunities.
▪Conservation and Reduction (ENV 11.4). Maximize the conservation and efficient use of energy in existing
and new residences, businesses, and municipal buildings in Los Gatos.
▪Solar Systems (ENV 11.5). Support the maximum economic use of solar electric (photovoltaic) systems
on-site to augment the renewable energy portfolio available to new development, businesses, and
municipal facilities.
▪Organic Waste Recycling (ENV 11.6). Comply with SB 1383 regulations to maximize energy recovery
from organic materials such as yard trimmings, food waste, and other compostable resources.
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10.5 Goals, Policies, and Implementation Programs
The Town does not build housing but, rather creates the policies and implementation programs to plan for where
the housing can be located and how many units can be built on potential sites. The Town is responsible for
enabling the production of housing by reducing regulatory barriers, providing incentives, and supporting programs
that create or preserve housing, especially for vulnerable populations. The 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 goals, policies, and
actions.
Goal HE-1 Facilitate All Types of Housing Construction.
The Town encourages the production of diverse new housing options to ensure that an adequate supply is
available to meet the existing and future needs of all residents.
Policy HE-1.1 Adequate Sites
Designate sufficient, residentially zoned land at appropriate densities to provide adequate sites to
accommodate Los Gatos’s RHNA for 2023–2031 and monitor residential development to ensure
there is an adequate level of remaining development capacity.
Policy HE-1.2 Multi-Family Housing Densities
Encourage builders to develop projects on multi-family designated properties at the high end of
the applicable density range.
Policy HE-1.3 Infrastructure
All new residential development shall be sufficiently served by public services and facilities,
including pedestrian and vehicular circulation, bike lanes, water and wastewater services, police,
fire, schools, and parks.
Policy HE-1.4 Housing Design
Ensure that all new housing is well designed and fosters a sense of community.
Policy HE-1.5 Variety of Housing Choices
Encourage the production of housing that meets the needs of all economic segments of the
Town, including lower and moderate households, to maintain a balanced community.
Policy HE-1.6 Universal Design
Address the special housing needs of persons with disabilities through reasonable
accommodation procedures, zoning provisions for supportive and group housing, homeowner
accessibility grants, and by encouraging universal design.
Policy HE-1.7 Infill Opportunities in Single-Family Neighborhoods
The Town shall increase access to opportunity for lower-income households by encouraging infill
of smaller units in single-family neighborhoods (e.g., ADUs, multi-generational housing units, and
SB 9 projects).
AFFH
AFFH
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Goal HE-2 Provide New Affordable Housing.
Overall housing production has been too slow to keep pace with population growth over the past two decades.
This trend has increased demand on the supply side of housing and increased the cost of all housing. More
affordable housing is needed for extremely low, very low-, low-, and middle-income households.
Policy HE-2.1 Financial Resources
Pursue expanding financial resources to support the production of affordable housing for the
Town’s modest income residents and workforce.
Policy HE-2.2 Housing Vouchers
The Town shall support the Santa Clara County Housing Authority program for Housing Choice
Vouchers (Section 8) to assist extremely low-, very low-, and low-income residents of the Town.
Policy HE-2.3 Mixed-Use Development
Encourage mixed–use developments that provide affordable housing close to employment
centers and/or transportation facilities, particularly along arterials.
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 ADUs as a means of affordable rental housing.
Policy HE-2.5 Pre-Approved Accessory Dwelling Units
Collaborate with countywide efforts to develop pre-approved ADU plans suitable for Los Gatos,
including designs that are Americans with Disabilities Act (ADA) accessible.
Policy HE-2.6 Promote Accessory Dwelling Unit Construction
Encourage homeowners to construct detached rental AD Us in order to increase the housing
stock of smaller rental units.
Policy HE-2.7 Senior Housing
Support development and maintenance of affordable senior rental and ownership housing and
continue to work with existing senior lifestyle living and assisted living facilities in Los Gatos.
Encourage a variety of senior living options including downsizing and step-down independent
ownership housing.
Policy HE-2.8 Equal Housing and Special Needs
Support the provision of permanent, affordable, and accessible housing that allows persons with
special needs to live independent lives. For the purposes of this Housing Element “persons with
special needs” include extremely low-income households, seniors, overcrowded and large-family
households, the homeless population, those in need of emergency shelter, youth aging out of
foster care, female-headed or single-parent households, and persons with disabilities, including
developmental challenges.
Policy HE-2.9 Public/Private Partnerships
Work with and support collaborative partnerships with nonprofit agencies and housing developers
to plan and develop a mix of affordable housing opportunities in Los Gatos using available
funding.
AFFH
AFFH
AFFH
AFFH
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10-36 HCD Draft Initial Review 2023-2031 Housing Element October 2022
Policy HE-2.10 Repurposing Obsolete Commercial Buildings
Encourage property owners to pursue opportunities to integrate housing in underutilized
commercial centers, and to reuse excess or obsolete commercial buildings for affordable
housing.
Policy HE-2.11 Smart Growth
Encourage “smart growth” that accommodates higher density residential uses near transit,
bicycle-, and pedestrian-friendly areas of the Town that encourage and facilitate the conservation
of resources by reducing the need for automobile use.
Policy HE-2.12 Housing on Land Owned by Religious Institutions
Support the provision of affordable housing on congregational land through flexible development
standards, including opportunities for reduced and shared parking arrangements.
Goal HE-3 Remove Barriers to the Production of Housing.
Governmental constraints on the development of housing for households of all income levels needs to be
minimized. The success of development in some opportunity areas will be dependent upon consolidation of
individual parcels into larger development sites. While some of the individual parcels within these areas are
already under common ownership, many are individually owned.
Policy HE-3.1 Regulatory Incentives for Affordable Housing
Facilitate the development of affordable housing through regulatory incentives and concessions,
and/or financial assistance. Continue expediting the permit processing system for affordable
residential development applications and proactively seek out new models and approaches in the
provision of affordable housing.
Policy HE-3.2 Flexible Development Standards
Provide flexibility in development standards to accommodate new models and approaches to
providing housing, such as live/work housing (permitted with a CUP), and micro units (in exist ing
housing units), to allow housing to adapt to the needs of the occupants.
Policy HE-3.3 Efficient Development Processing
Explore continued improvements to the entitlement process to streamline and coordinate the
processing of permits, design review, and environmental clearance.
Policy HE-3.4 Lot Consolidation
Educate and encourage lot consolidation and lot assemblage in mixed use and commercial
areas.
Policy HE-3.5 Development Impact and Permit Fees
Consider reduced fees and alternative funding to facilitate affordable housing development.
AFFH
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-37
Goal HE-4 Improve the Existing Housing Stock.
Providing more housing is a priority; but maintaining and preserving existing housing also plays a critical role.
Much of the older housing in the Town can be naturally affordable, as priced by the housing market, but must be
well-maintained to provide quality housing across income levels.
Policy HE-4.1 Property and Housing Conditions
Support long-term maintenance and improvement of existing housing units through Code
Enforcement and housing rehabilitation programs.
Policy HE-4.2 Multi-Family Housing Acquisition and Improvement
Improve the quality of rental housing by acquisition and/or rehabilitation using the Affordable
Housing Fund and support nonprofit housing providers in the acquisition and rehabilitation of
older housing stock, and maintenance as long-term affordable housing.
Policy HE-4.3 Home Affordability Preservation
Preserve the affordability of units affordable to very low -, low-, and moderate-income households
in the Town and Bonnie View Park, and enforce zoning regulations regarding conversion of
mobile home parks in Los Gatos.
Policy HE-4.4 Naturally Occurring Affordable Units
Encourage maintaining naturally affordable housing types such as duplexes , townhomes, and
mobile homes.
Policy HE-4.5 Preserve Residences of Historic or Architectural Value
The Town shall encourage the preservation of residential buildings with historic or architectural
value.
Goal HE-5 Encourage Green Building and Energy Conservation.
The Town is dedicated to addressing and mitigating climate change impacts and strives to be a leader in
sustainable development. The General Plan promotes environmentally sound and socially equitable development
by encouraging residential construction that promotes sustainable building and energy conservation practices.
Policy HE-5.1 Green Building
Encourage sustainable housing development throughout the Town by fostering awareness and
encouraging the adoption of green building practices.
Policy HE-5.2 Solar Energy
Promote more efficient energy use and renewable energy to reduce the strain on the existing
energy grid and reduce greenhouse gas emissions.
AFFH
AFFH
AFFH
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10-38 HCD Draft Initial Review 2023-2031 Housing Element October 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
important for the Town to proactively inform residents about housing needs and resources, particularly those
related to Fair Housing issues.
Policy HE-6.1 Fair Housing
Support and publicize housing programs that protect individuals’ rights and enforce fair housing
laws prohibiting arbitrary discrimination in the building, financing, selling or renting of housing on
the basis of race, color, ancestry, religion, national origin, sex, sexual orientation, age,
disability/medical condition, familial status, marital status, source of income or other such factors.
Policy HE-6.2 Financial Assistance
Continue to encourage Los Gatos households to participate in financial assistance programs
provided in the County of Santa Clara.
Policy HE-6.3 Housing for Persons with Special Needs
Continue to provide assistance to service providers who support special needs households and
the homeless, such as Project Sentinel, Santa Clara County Housing Authority, and Santa Clara
County Office of Supportive Housing. Support and publicize efforts and resources to provide
coordinated services for persons with special needs in the Town.
Policy HE-6.4 Affordable Housing Awareness
Raise community awareness of the need 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.
Policy HE-6.5 Infill Opportunities in Single-Family Neighborhoods
The Town shall provide educational materials for the public to promote ADUs, multi-generational
housing units and SB 9 projects that create housing opportunities in single-family neighborhoods
through the infill of smaller units.
Policy HE-6.6 Rental Dispute Mediation and Arbitration Ordinance
The Town will work to prevent evictions of long term, low-income residents living in naturally
affordable housing who can quickly lose their residence due to sudden rent increases or changes
in property owners.
AFFH
AFFH
AFFH
AFFH
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-39
10.6 Implementation Programs
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
A Developer Forum
Establish an annual meeting
between staff and housing
developers to discuss constraints
and opportunities to affordable
and market rate housing projects.
HE-1.1 Adequate
Sites
HE-1.2 Multi-family
Housing Densities
HE-1.3 Infrastructure
HE-1.4 Housing
Design
HE-1.5 Variety of
Housing Choices
Community
Development
Department
Annually provide
focus group or
Town Hall
meeting
opportunities
None
required
B Large Site Program
Encourage property owners and
affordable housing developers to
target and market the availability
of sites with the best potential for
development by facilitating
meetings between willing
property owners of large sites.
To assist the development of
housing, especially for lower
income households, on sites
larger than 10 acres, the Town
will facilitate land divisions and lot
line adjustments to result in
parcels sizes between one half
to10 acres that can
accommodate multiple-family
developments affordable to lower
income households in light of
State, Federal, and local
financing programs.
HE-1.1 Adequate
Sites
HE-1.2 Multi-family
Housing Densities
HE-1.3 Infrastructure
HE-1.4 Housing
Design
HE-1.5 Variety of
Housing Choices
Community
Development
Department
Annually provide
focus group or
Town Hall
meeting
opportunities
None
required
C No Net Loss
Develop and implement an
ongoing formal evaluation
procedure (project-by-project) of
sites identified in the Site
Inventory to maintain sufficient
sites at appropriate densities to
accommodate 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
HE-1.1 Adequate
Sites
HE-1.3 Infrastructure
HE-1.5 Town
Resources
HE-1.5 Variety of
Housing Choice
Community
Development
Department
Ongoing
tracking as
developments
are approved
None
required
HCD Draft Initial Review 2023-2031 Housing Element
10-40 HCD Draft Initial Review 2023-2031 Housing Element October 2022
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
will identify and zone sufficient
adequate sites at appropriate
densities to accommodate the
remaining RHNA.
D Additional Housing Capacity
Amend the North Forty Specific
Plan to increase the maximum
allowable density from 20
dwelling units per acre to more
than 30 dwelling units per acre
and increase the total number of
dwelling units allowed in the
Specific Plan.
HE-1.1 Adequate
Sites
HE-3.3 Efficient
Development
Processing
Community
Development
Department
December 2023 None
required
E Affordable Development on
Town Owned Property
Pursue opportunities to work with
an affordable housing developer
to construct affordable housing
on Town owned property.
HE-1.1 Adequate
Sites
HE-2.9 Public/Private
Partnerships
Community
Development
Department
Ongoing None
required
F Update Permit Software
System
Update the existing permit
software system to better monitor
average processing times for
ministerial and discretionary
development permits. Use data
to set baselines timelines to drive
improvements. Update the Town
planning and zoning regulations
and remove permit processing
constraints as appropriate.
HE-3.3 Efficient
Development
Processing
Community
Development
Department
Review and
update
regulations as
appropriate at
biannual years
None
required
G Report Annually on Housing
Availability
Prepare an annual housing report
for the review of the Town
Council including information on
progress made towards
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
HE-1.1 Adequate
Sites
HE-1.5 Town
Resources
HE-3.3 Efficient
Development
Processing
HE-1.5 Variety of
Housing Choices
Community
Development
Department
Annual None
required
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-41
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
resources in preparation and
evaluation of the report.
H Study detached single-family
condominium option.
Study the development of a new
floor area ratio standard for multi-
family development when
developed as detached single-
family condominium units.
HE-1.5 Variety of
Housing Choices
HE-2.7 Senior
Housing
Community
Development
Department
Upon adoption
of this Housing
Element
None
required
I Coordination with Water and
Sewer Providers
Deliver the adopted Housing
Element to the San Jose Water
Company and the West Valley
Sanitation District so that they
can prioritize current and future
resources or services for housing
development that helps meet Los
Gatos’s RHNA for lower income
households.
HE-1.3 Infrastructure Community
Development
Department
Upon adoption
of this Housing
Element
None
required
J Helping Seniors Program
Provide financial assistance for
health, safety, emergency and
accessibility home repairs to low-
income seniors and low-income
mobile homeowners through the
Below Market Price Program
funds, subject to availability of
Program funds.
HE-1.7 Universal
Design
HE-2.7 Senior
Housing
HE-2.8 Equal
Housing and Special
Needs
Community
Development
Department,
Town Council
Ongoing Town
Affordable
Housing
Funds
K Small Multi-Unit Housing
Update the Zoning Code to
facilitate low rise multi-family
structures in the Medium
Residential Density designation.
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.
HE-1.5 Variety of
Housing Choices
HE-2.4 Rental
Housing
HE-3.3 Efficient
Development
Processing
Community
Development
Department
Ongoing None
required
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10-42 HCD Draft Initial Review 2023-2031 Housing Element October 2022
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
L Rental Housing for Large
Families
Encourage development of multi-
family rental housing that is
greater than two bedrooms to
encourage the provision of
adequate rental housing for
families.
HE-1.5 Variety of
Housing Choices
HE-2.4 Rental
Housing
Community
Development
Department
Ongoing None
required
M Lot Consolidation
The Town will conduct outreach
to property owners in these areas
to identify meaningful incentives
to facilitate lot consolidation, lot
assemblage and redevelopment
in mixed use and commercial
areas. Based on this feedback,
within two years of Housing
Element adoption, the Town will
consider the development of a
Lot Consolidation Ordinance to
include specific incentives such
as: flexible development
standards such as reduced
setbacks, increased lot coverage,
increased heights, reduced
parking, reduced fees, and
streamlined permit processing
through administrative staff
review. Upon adoption of the
Ordinance, the Town will work
with property owners that are
receptive to lot consolidation/lot
assemblage to assist them in
facilitating the parcel merge
process in a streamlined and
timely manner.
HE-3.4 Lot
Consolidation
Community
Development
Department
Within two years
of Housing
Element
adoption
None
required
N Below Market Price Program
Conduct a study to evaluate the
existing BMP Program and
recommend changes to the
program to increase the number
of units constructed. The study
will include evaluation of the
implementation of the BMP
Program to date, including
impacts to market rate housing
related to current market
conditions, project applications,
HE-2.7 Senior
Housing
HE-3.1 Regulatory
Incentives for
Affordable Housing
HE-4.1 Property and
Housing Conditions
HE-4.2 Multi-family
Housing Acquisition
Improvement
Community
Development
Department
Complete study
by June 2025
and implement
recommended
policy actions by
December 2028.
Town
Affordable
Housing
Fund
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-43
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
estimated affordable housing
requirements, fee collection, and
actual construction of affordable
housing units to address
constraints based on the
outcome of the evaluation. The
study will evaluate the feasibility
of requiring BMP’s for senior
assisted living, senior
independent living, and senior
communities.
O Establish a Commercial
Linkage Fee
Conduct a nexus study and
amend the Municipal Code to
include a linkage fee if
appropriate. A commercial
linkage fee is an impact fee
levied on commercial
development for the provision of
affordable housing. Before
levying an impact fee, the Town
is required to complete a nexus
study that shows the linkage
between new development and
the increased demand for
housing.
HE-3.5 Development
Impact and Permit
Fees
Community
Development
Department
Complete study
by June 2024
and implement
recommended
actions by
December 2024.
None
required
P Funds for Development for
Extremely Low Income (ELI)
Households
Continue to encourage the
creation of housing that is
affordable to extremely low-
income households by allocating
a percentage of the Town
Affordable Housing (Below
Market Price) Fund to subsidize
housing for extremely low-income
households. 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 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
HE-3.1 Regulatory
Incentives for
Affordable Housing
HE-4.1 Property and
Housing Conditions
HE-4.2 Multi-family
Housing Acquisition
Improvement
Community
Development
Department
Ongoing Town
Affordable
Housing
Fund
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10-44 HCD Draft Initial Review 2023-2031 Housing Element October 2022
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
conducting local Tax Equity and
Fiscal Responsibility Act
(TEFRA) hearings to facilitate the
financing of proposed housing
projects in Los Gatos.
Q Habitat for Humanity Home
Repair Program
Work with Habitat for Humanity to
promote the Home Repair
Program offered by Habitat,
which responds to health,
accessibility, and safety concerns
in homes owned by low-income
families, veterans, and senior
residents on limited incomes. By
fixing the long-deferred
maintenance projects, critical
repairs and code violations, this
program helps families stay in
their already affordable homes
and avoid displacement.
HE-2.7 Senior
Housing
HE-2.8 Equal
Housing and Special
Needs
HE-4.1 Property and
Housing Conditions
Community
Development
Department
Annually meet
with Habitat for
Humanity
None
required
R 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.
HE-3.5 Development
Impact and Permit
Fees
Community
Development
Department,
Parks and
Public Works,
Town Council
January 2023 to
January 2031
Staff Time
S Affordable Housing
Development
Provide incentives for affordable
housing development, including
density bonus, fee deferrals or
reductions, and reduced fees for
studio units. The Town shall also
provide annual outreach to attract
and support affordable housing
developers in the Town, including
developers of senior housing,
extremely low-income units, and
permanent supportive housing for
persons with disabilities and
developmental disabilities.
HE-1.2 Multi-family
Housing Densities
HE-3.5 Development
Impact and Permit
Fees
HE-2.7 Equal
Housing and Special
Needs
HE-2.9 Public/Private
Partnerships
HE-3.1 Regulatory
Incentives for
Affordable Housing
Community
Development
Department,
Town Council
January 2023 to
January 2031
Staff Time
and the
Town
Affordable
Housing
Fund
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-45
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
T Purchase Affordability
Covenants in Existing
Apartments
Create a program for the Town to
purchase affordability covenants
with BMP funding to increase the
supply of affordable housing or
“buy-down” existing affordability
covenants to have deeper
affordable units in existing rental
properties. This program is
analogous to purchasing
covenants in new developments
in conjunction with the BMP
program, but for existing
apartments.
In existing and new rental
developments, the Town could
provide a rehabilitation loan or
another form of subsidy to a
rental property owner in
exchange for securing
affordability covenants on a
percentage of units and the
owner’s agreement to restrict
rents on these units to levels that
would be affordable to very low-
and low-income households.
HE-2.1 Financial
Resources
Community
Development
Department,
Town Council
January 2023 to
January 2031
Town
Affordable
Housing
Fund
U Accessory Dwelling Units
Waive building fees when an
ADU is deed restricted for very
low- and low-income households.
HE-2.4 Rental
Housing
HE-3.5 Development
Impact and Permit
Fees
Community
Development
Department
Amend the Fee
Schedule within
one year of
Housing
Element
adoption
Below
Market
Price
Housing In-
lieu Fees
V Density Bonus
Conduct a study to evaluate the
existing Density Bonus
Ordinance and recommend
changes to increase the number
of units constructed. The study
will include an evaluation of the
implementation of the ordinance
to date and actual construction of
affordable housing units that
utilized the Density Bonus.
Additional density and height
incentives beyond what the State
HE-3.1 Regulatory
Incentives for
Affordable Housing
HE-2.3 Mixed-Use
Development
HE-2.8 Equal
Housing and Special
Needs
Community
Development
Department
Complete study
by June 2026
and implement
recommended
actions by
December 2029
None
required
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10-46 HCD Draft Initial Review 2023-2031 Housing Element October 2022
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
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.
W Affordable Housing Overlay
Zone (AHOZ)
Continue to encourage
development of housing
affordable to all income levels on
property within this Town Overlay
Zone. The Overlay property on
Knowles Avenue is a key site for
a mixed income affordable
housing project.
HE-3.1 Regulatory
Incentives for
Affordable Housing
HE-2.7 Senior
Housing
HE-2.8 Equal
Housing and Special
Needs
HE-2.9 Public/Private
Partnerships
HE-2.11 Policy Smart
Growth
Community
Development
Department
Complete by
2025
None
required
X Congregational Land Overlay
Zone
Expand site opportunities by
allowing affordable housing on
religious sites. Study new
Congregational Land Overlay to
build upon what is available
through AB 1851 and help
congregations by connecting
them with affordable housing
development partners.
HE-3.1 Regulatory
Incentives for
Affordable Housing
HE-2.7 Senior
Housing
HE-2.8 Equal
Housing and Special
Needs
HE-2.9 Public/Private
Partnerships
HE-2.11 Policy Smart
Growth
Community
Development
Department
Complete by
2025
None
required
Y Nonprofit Affordable Housing
Providers
Support the efforts of nonprofit
affordable housing organizations
that provide housing services in
Los Gatos. Encourage the
participation of these providers in
developing housing and meeting
the affordable housing needs of
Los Gatos households
particularly extremely low-income
households. 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
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
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-47
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
incentives for the development of
affordable housing as provided
under the Affordable Housing
Overlay Zone.)
Z Increased Range of Housing
Opportunities for the
Homeless
Continue to support the County
of Santa Clara’s Continuum of
Care plan, as well as the
“Housing 1000” campaign by
“Destination: Home” to provide
housing opportunities for
homeless households, including
emergency shelter, transitional
housing, and permanent
affordable housing opportunities.
HE-2.8 Equal
Housing and Special
Needs
HE-2.9 Public/Private
Partnerships
Community
Development
Department
January 2023 to
January 2031
County
CDBG
AA Reasonable Accommodation
Ordinance
Continue to enforce Section
29.10.505–530 of the Town Code
to ensure equal access to
housing for persons with
disabilities under the Fair
Housing Act and provide specific
procedures for requesting and
granting reasonable
accommodations. Review
annually for trends and develop
new procedures and/or materials
in response to annual review.
HE-2.8 Equal
Housing and Special
Needs
Community
Development
Department
Annually None
required
AB Accessibility Design Features
Encourage residential
development that incorporates
accessible design features to
meet the needs of as many users
as possible. The intent is to
reduce the potential for
occupants to be displaced from
their homes due to disability, to
allow those persons to visit
neighboring dwelling units, and to
increase to number of accessible
dwelling units in the local housing
supply that meet long term
housing needs. Remove
identified regulatory constraints
Policy HE-1.6
Universal Design
HE-2.8 Equal
Housing and Special
Needs
HE-2.9 Public/Private
Partnerships
Community
Development
Department
Review and
update
regulations as
necessary; at
least every three
years
None
required
HCD Draft Initial Review 2023-2031 Housing Element
10-48 HCD Draft Initial Review 2023-2031 Housing Element October 2022
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
on housing for persons with
disabilities.
AC Housing Opportunities for
Persons Living with
Disabilities
Support the provision of housing
for the 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 multi-family
residential zones subject to a
conditional use permit.
▪Treatment of supportive and
transitional housing as a
residential use of property,
and subject only to those
restrictions and processing
requirements that apply to
other residential dwellings of
the same type in the same
zone.
▪Programs to facilitate
affordable housing, including
Density Bonus and
Affordable Housing Overlay.
▪Encouraging affordable
housing developers to
integrate supportive housing
units, increasing project
competitiveness for Tax
Credits and other funding
sources.
▪Supporting the creation of
ADUs in all residential
districts.
HE-1.6 Universal
Design
HE-2.8 Equal
Housing and Special
Needs
HE-6.1 Fair Housing
HE-6.3 Housing for
Persons with Special
Needs
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-49
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
AD Special Needs Housing
Prioritize special needs housing
by allowing for reduced
processing times and streamlined
procedures for applicable
zoning/land use applications.
Include preferential handling of
special needs populations in
management plans and
regulatory agreements of funded
projects.
HE-2.7 Senior
Housing
HE-2.8 Equal
Housing and Special
Needs
HE-2.9 Public/Private
Partnerships
HE-3.3 Efficient
Development
Processing
Community
Development
Department
January 2023 to
January 2031
None
required
AE 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
in protecting both tenants’ and
landlords’ rights.
HE-6.6 Rental
Dispute Mediation
and Arbitration
Ordinance
Community
Services
Department
January 2023 to
January 2031
Program
fees
AF Rental Assistance for Persons
with Developmental
Challenges
Work with local and/or regional
partners to provide rental
assistance for persons with
developmental challenges.
Efforts will include the following:
▪Work with the California
Department of
Developmental Services local
Regional Center to identify
the housing needs specific to
developmentally challenged
persons residing in Los
Gatos and assist in
identifying available housing
that meets those needs.
▪Encourage qualifying
Regional Center clients
residing in Los Gatos to
apply for appropriate rental
assistance programs.
▪Identify outside funding
sources, such as regional or
State programs, that could
HE-2.7 Senior
Housing
HE-2.8 Equal
Housing and Special
Needs
HE-2.9 Public/Private
Partnerships
Community
Development
Department
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
HCD Draft Initial Review 2023-2031 Housing Element
10-50 HCD Draft Initial Review 2023-2031 Housing Element October 2022
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
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.
AG Supportive Services for the
Homeless
Continue to support community
and nonprofit organizations that
provide supportive services for
homeless persons in Los Gatos
in part by continuing to fund the
Town's annual grant and
disseminating opportunities for
other agency funding to West
Valley Community Services
(WVCS), in order to support its
Comprehensive Emergency
Assistance Program (CEAP).
HE-2.3 Mixed-Use
Development
HE-2.7 Equal
Housing and Special
Needs
Community
Development
Department
January 2023 to
January 2031
Town of
Los Gatos
AH Stabilize Rents
Study and implement
recommendations with regard to
the Town’s Rental Dispute
Mediation and Arbitration
Ordinance 2128 to help further
stabilize rents for long-term
residents.
HE-2.3 Mixed-Use
Development
HE-2.4 Rental
Housing
HE-6.6 Rental
Dispute Mediation
and Arbitration
Ordinance
Community
Development
Department
Complete study
by January 2024
and implement
Municipal Code
changes by
June 2024
AI Reduce Parking Standards
Initiate a study to determine
specific updates for the Municipal
Code to address the following:
▪Align parking requirements
with the preparation of
Objective Design Standards.
▪Reduce parking requirements
near transit.
▪Remove guest parking
requirements.
▪Allow parking to be
unbundled from residential
units.
3.1 Regulatory
Incentives for
Affordable Housing
2.7 Senior Housing
2.8 Equal Housing
and Special Needs
Community
Development
Department
Complete study
by January 2024
and implement
Municipal Code
changes by
June 2024
None
required
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-51
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
AJ 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.
HE-3.1 Regulatory
Incentives for
Affordable Housing
Community
Development
Department
Implement
General Plan
and Municipal
Code changes
by June 2024
None
required
AK 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.
HE-4.1 Property and
Housing Conditions
Community
Development
Department
January 2023 to
January 2031
Town
Affordable
Housing
Fund
AL SB 35 Process Improvements
Develop an SB 35 checklist and
written procedures for processing
SB 35 applications to ensure
efficient and complete application
processing.
HE-3.3 Efficient
Development
Processing
HE-3.1 Regulatory
Incentives for
Affordable Housing
Community
Development
Department
Implement by
December 2023
Staff Time
AM 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.
HE-2.7 Equal
Housing and Special
Needs
Community
Development
Department
Implement by
December 2023
Staff Time
AN 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
the business licensing
recertification process, and
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
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10-52 HCD Draft Initial Review 2023-2031 Housing Element October 2022
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
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.
AO Transit Oriented Development
As part of the comprehensive
Zoning Code update, establish
development standards for
transit-oriented development
located within existing transit
areas that promote sustainable
land use practices which reduce
vehicle trips and 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.
HE-2.10 Policy Smart
Growth
Community
Development
Department
January 2023 to
January 2031
Staff Time
AP Preserve “At-Risk” Affordable
Housing Units
Continue to monitor affordable,
multi-family housing units in the
Town to ensure that they retain
their affordability status.
HE-4.3 Home
Affordability
Preservation
Community
Development
Department
January 2023 to
January 2031
None
required
AQ 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), which
requires that any proposed
conversion satisfy the housing
goals and policies as set forth in
the 2040 General Plan.
HE-2.4 Rental
Housing
HE-4.1 Property and
Housing Conditions
Community
Development
Department
January 2023 to
January 2031
None
required
AR CDBG and other Housing
Rehabilitation Programs
Continue to participate in the
County of Santa Clara
Community Development Block
Grant Joint Powers Authority to
facilitate participation in County
HE-4.1 Property and
Housing Conditions
HE-4.3 Home
Affordability
Preservation
Community
Development
Department
January 2023 to
January 2031
General
Fund
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-53
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
CDBG Housing Rehabilitation
programs by Town residents.
AS 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 provide local technical
assistance as needed to
nonprofits submitting funding
applications to the County and/or
applying for building permits
through the Town’s building
permit process.
Contribute funding from the
Town’s Below Market Price
monies to support these
programs. The Continue to
participate as a member of the
County of Santa Clara JPA.
Continue to provide staffing to
the County Technical Advisory
Committee (TAC), which reviews
annual applications for funding
and helps formulate funding
recommendations to the Board of
Supervisors.
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
AT Energy Conservation
Opportunities
Continue to enforce State of
California Title 24 requirements
for energy conservation.
HE-5.1 Green
Building
Community
Development
Department
Ongoing None
required
AU Residential Rehabilitation
Program
HE-4.1 Property and
Housing Conditions
HE-5.1 Green
Building
Community
Development
Department
January 2023 to
January 2031
Town
Affordable
Housing
Fund
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10-54 HCD Draft Initial Review 2023-2031 Housing Element October 2022
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
Create a new program to assist
lower income homeowners,
including senior and disabled
households, with funding 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.
AV Solar Energy
Continue to expedite solar panel
installation by requiring only
ministerial building permits.
HE-5.1 Green
Building
HE-5.2 Solar Energy
Community
Development
Department
Ongoing None
required
AW Town Housing Resources
Guide
Continue to provide a guide to
developments that include
affordable housing units as part
of the Housing Resources Guide
posted on the Town’s website,
and available at Town Hall,
Library, and other Town facilities.
Publicize available
warming/cooling centers as
provided by the Santa Clara
County of Office of Supportive
Housing during inclement
weather episodes.
HE-5.1 Green
Building
HE-6.4 Affordable
Housing Awareness
Community
Development
Department
Update list
annually
None
required
AX Santa Clara County Fair
Housing Consortium
Support the efforts of the Santa
Clara County Fair Housing
Consortium, as follows. 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. Through an
ongoing partnership with Project
Sentinel, a member of the
Consortium and the Town’s
HE-5.2 Solar Energy
HE-6.3 Housing for
Persons with Special
Needs
Community
Development
Department
January 2023 to
January 2031
None
required
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-55
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
service administrator for the
Rental Dispute Resolution
Program, Town staff is able to
attend the Consortiums annual
Fair Housing Symposium,
receive training, and disseminate
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.
AY Senior Housing Resources
Provide regularly updated senior
housing resource materials at the
Adult Recreation Center, Library,
and Farmers Market.
HE-6.1 Fair Housing
HE-6.2 Financial
Assistance
HE-6.3 Housing for
Persons with Special
Needs
HE-6.4 Affordable
Housing Awareness
Community
Development
Department
Update
materials
annually
None
required
AZ Developmental Challenges
Continue to work with the local
California Department of
Developmental Services
Regional Center to proactively
inform families within Los Gatos
about housing and services
available for persons with
developmental challenges, to
include an informational
brochure, information on the
Town’s website, and housing-
related training workshops for
individuals and families.
HE-6.1 Fair Housing
HE-6.3 Housing for
Persons with Special
Needs
HE-6.4 Affordable
Housing Awareness
Community
Development
Department,
California
Department of
Developmental
Services
Update
materials
annually
None
required
BA Use a Variety of
Communication Methods
Broadcast information about
available housing resources
through a variety of
communication methods across
media, technological nonprofit
organizations and traditional in
person outreach methods, such
as the Farmers Market, Library,
and community center, with a
particular focus on reaching the
very low- and low-income
demographic and those who may
HE-6.1 Fair Housing
HE-6.4 Affordable
Housing Awareness
Community
Development
Department,
California
Department of
Developmental
Services
Quarterly
January 2023 to
January 2031
None
required
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10-56 HCD Draft Initial Review 2023-2031 Housing Element October 2022
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
not have access to online
resources.
BB Educate Single-Family
Property Owners Regarding In-
Fill Housing Options
Create and distribute educational
materials to include information
about the process to construct
ADU’s, multi-generational
housing, and options available
with Senate Bill SB 9.
HE-1.5 Variety of
Housing Choices
HE-1.7 Infill
Opportunities in
Single-Family
Neighborhoods
HE-6.1 Fair Housing
HE-6.4 Affordable
Housing Awareness
Community
Development
Department,
California
Department of
Developmental
Services
Quarterly
January 2023 to
January 2031
None
required
BC Zoning Text Amendments for
Special Needs Housing
Pursuant to recent changes in
State law, the Town’s Municipal
Code may be modified to better
facilitate the provision of a variety
of housing types. These Code
revisions include:
▪Amend parking standards for
emergency shelters from a
ratio based on the size of the
structure to a ratio based on
the number of shelter staff
(per AB 139).
▪Eliminate current spacing
requirements between
shelters and residentially
zoned properties and
schools.
▪Develop and adopt by- right
processing procedures for
Low Barrier Navigation
Centers (per AB 101).
▪Allow small employee
housing (six or fewer) in all
zone districts where single-
family residential is
permitted.
HE-2.7 Equal
Housing and Special
Needs
Community
Development
Department
January 2024 None
required
BD Affordable Development on
Religious Sites
Pursue and expand development
opportunities by allowing
affordable housing on religious
sites per AB 2244.
HE-2.12 Housing on
Land Owned by
Religious Institutions
Community
Development
Department
Ongoing None
required
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-57
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
BE Community Education on
Housing Needs
Provide education on the
problems and needs of affordable
housing as a means of changing
negative attitudes towards the
provision of affordable housing.
HE-6.4 Affordable
Housing Awareness
Community
Development
Department
Ongoing None
required
BF Zoning Code Amendments
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.
Amend the Zoning Code to
include a Housing Element
Overlay Zone (HEOZ) to apply to
the sites included in the Site
Inventory to modify the
development standards (i.e.,
density, lot coverage, FAR,
height) on those sites.
Amend the Affordable Housing
Overlay Zone to increase the
maximum allowable density from
20 dwelling units per acre to 40
dwelling units per acre.
Clarify the text of the non-
residential zones regarding
housing.
Rezone the Caltrans ROW – Site
E3 to allow residential
development.
HE-1.1 Adequate
Sites
HE-1.2 Multi-family
Housing Densities
HE-2.11 Smart
Growth
Community
Development
Department
If the Housing
Element is found
in compliance by
January 31,
2023, then
rezonings will be
completed within
3 years and 120
days. If it is not
found in
compliance,
then the
rezonings will be
completed within
1 year of
January 1, 2024.
General
Plan
Update
Fund
BG General Plan Amendment
Amend the General Plan to
establish new maximum densities
for the High Residential, Medium
Density Residential, Low Density
Residential, Mixed-Use,
Neighborhood Commercial, and
Central Business District land
use designations to provide for
the development of housing for
the sites in the Site Inventory.
See Program BF.
HE-1.1 Adequate
Sites
HE-1.2 Multi-family
Housing Densities
HE-2.11 Smart
Growth
Community
Development
Department
If the Housing
Element is found
in compliance by
January 31,
2023, then
rezonings will be
completed within
3 years and 120
days. If it is not
found in
compliance,
then the
rezonings will be
General
Plan
Update
Fund
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10-58 HCD Draft Initial Review 2023-2031 Housing Element October 2022
Programs Implements Which
Policy(ies)
Responsible
Supporting
Department(s)
Time Frame Funding
Source
completed within
1 year of
January 1, 2024
BH Provide Adequate Sites for
Lower Income Households on
Nonvacant and Vacant Sites
Previously Identified
Rezone the following sites to
allow development by right
pursuant to Government Code
section 65583.2(i) when 20
percent or more of the units are
affordable to lower income
households as identified in
Appendix I to accommodate the
lower income RHNA for sites that
were previously identified in past
housing elements:
Parcel: 424-08-074;
Parcel 424-08-057; and
Parcel 424-08-21.
HE-1.1 Adequate
Sites
Community
Development
Department
Sites rezoned
no more than
three years from
the beginning of
the planning
period.
General
Plan
Update
Fund
10.Housing Element
10.7 Glossary and Acronyms
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-59
A
Accessible. The ability to accommodate everyone
regardless of ability or pre-existing condition.
Accessory Dwelling Unit (ADU). An accessory
dwelling unit is a detached or attached dwelling unit.
It shall include permanent provisions for living,
sleeping, eating, cooking, and sanitation and is
generally smaller and located on the same parcel as
a proposed or exiting primary dwelling. An accessory
dwelling unit also includes efficiency units and
manufactured homes.
Acres (Gross). An acre is a measurement of land
area equal to 43,560 square feet. The gross acreage
of a lot includes all land within the boundaries of the
lot (including, but not limited to, easements). The
gross acreage is defined as the total area, measured
on a horizontal plane, and is the measure used for
determination of density and intensity calculations.
Acres (Net). A reduced lot size based average lot
slope or other factors and used for the purpose of
calculating the maximum allowed floor area or
density.
Affirmative Furthering Fair Housing. Taking
meaningful actions, in addition to combating
discrimination, that overcome patterns of segregation
and foster inclusive communities free from barriers
that restrict access to opportunity based on protected
characteristics. Specifically, affirmatively furthering
fair housing means taking meaningful actions that,
taken together, address significant disparities in
housing needs and in access to opportunity,
replacing segregated living patterns with truly
integrated and balanced living patterns, transforming
racially and ethnically concentrated areas of poverty
into areas of opportunity, and fostering and
maintaining compliance with civil rights and fair
housing laws. The duty to affirmatively further fair
housing extends to all of a public agency’s activities
and programs relating to housing and community
development. (Gov. Code, § 8899.50, subd. (a)(1).)”
Affordable Housing. Under State and Federal
statutes, affordable housing is housing which costs
no more than 30 percent of gross household income.
Housing costs include rent or mortgage payments,
utilities, taxes, insurance, homeowner association
fees, and other related costs.
Americans with Disabilities Act (ADA). A civil
rights law that prohibits discrimination against
individuals with disabilities in all areas of public life,
including jobs, schools, transportation, and all public
and private places that are open to the general
public.
Area Median Income (AMI). A key metric in
affordable housing. Area median income is defined
as the midpoint of a specific area’s income
distribution and is calculated on an annual basis by
the Department of Housing and Urban Development.
B
Below Market Program (BMP). The BMP Program
implements the Town of Los Gatos’ inclusionary
zoning ordinance, which requires that a portion of the
new residential construction in Los Gatos be
dedicated to affordable housing.
C
California Environmental Quality Act (CEQA).
State law that requires State and local agencies to
evaluate and disclose the significant environmental
impacts of discretionary actions and to avoid or
mitigate those impacts, if feasible.
Commercial. Retail, service, and entertainment
uses (e.g., shopping centers, smaller stores,
restaurants).
D
Density. Residential developments are regulated by
an allowed density range (minimum and maximum)
measured in “dwelling units per acre.” Residential
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10-60 HCD Draft Initial Review 2023-2031 Housing Element October 2022
density is calculated by dividing the number of
housings units on the site (excluding accessory units)
by the gross lot area.
Development. The subdivision of land; construction
or alteration of structures, roads, utilities, and other
facilities; installation of septic systems; grading
activities; depositing of refuse; disposal of any
material; dredging or mineral extraction, debris or fill
materials; and the clearing of natural vegetation with
the exception of agricultural activities. This does not
include routine repair and maintenance activities.
Dwelling Unit. A room or group of rooms (including
sleeping, eating, cooking, and sanitation facilities, but
not more than one kitchen) that constitutes an
independent housekeeping unit, occupied or intended
for occupancy by one household on a long-term
basis.
E
Environmental Justice. The fair treatment of
people of all races, cultures, incomes, political and
religious affiliation, and national origins with respect
to the development, adoption, implementation, and
enforcement of environmental laws, regulations, and
policies.
Equality. Is sameness; everyone gets the same
thing. Equality focuses on everyone getting the same
opportunity, but often ignores the realities of historic
exclusion and power differentials among whites and
other racialized groups.
Equity. Ensures that outcomes in the conditions of
well-being are improved for marginalized groups,
lifting outcomes for all. Equity is a measure of justice.
F
Federal Fair Housing Act of 1968. Prohibits
discrimination concerning the sale, rental, and
financing of housing based on race, color, religion,
national origin, - and was later amended to include
familial status and disability.
Fire Hazard Severity Zone. A mapped area that
designates zones, based on factors such as fuel,
slope, and fire weather, with varying degrees of fire
hazard (e.g., moderate, high, and very high).
Floor Area Ratio (FAR). Total building size is
regulated by a maximum FAR standard. FAR means
the gross floor area of a building or buildings on a
zoning plot divided by the area of such zoning plot.
Floor area means the entire enclosed area of all
floors that extend more than four (4) feet above the
existing or proposed grade, measured from the outer
face of exterior walls or in the case of shared walls
from the centerline. The maximum FAR standard
limits the overall size of development on a property.
G
Goal. A statement that describes, in general terms, a
desired future condition or “end” state. Goals
describe ideal future conditions for a topic and tend to
be very general and broad.
H
Housing Element Advisory Board. A Town
Council appointed advisory board for preparation of
the Housing Element.
I
Implementation Program. An action, activity, or
strategy to be taken by the Town to carry out an
adopted policy to achieve a specific goal or objective.
Infill Development. Development of vacant or
underutilized land (usually individual lots or leftover
properties) within areas that are already largely
developed.
Intensity. Developments are regulated by an
allowed intensity, measured by a maximum FAR.
Intensity is a measure of the extent to which a land
parcel is developed in conformity with the zoning
J
K
10. Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-61
L
Land Use Designation. A specific geographic
designation with associated land use or management
policies and regulations.
Lot Coverage. Lot coverage is the percentage of a
lot that is covered by all buildings compared to the
total area of the lot.
M
Missing Middle Housing. Missing middle housing is
a term used to describe a range of house-scale
buildings with multiple units that are compatible in
scale and form with detached single-family homes.
Common housing types include duplexes; triplexes;
fourplexes; courtyard apartments; cottage courts;
townhomes; triplex stacked (vertical); and live-work
spaces. Also referred to as “Small Multi-Unit
Housing”.
Mixed-Use Development. Development projects
where a variety of uses such as office, commercial,
institutional, and residential are combined in a single
building or on a single site in an integrated project.
These developments are regulated by both the
maximum residential density (units per acre) and
maximum FAR standard that incorporates both the
residential and non-residential building floor areas.
Multi-Family Residential. Residential buildings
containing units built one on top of another and those
built side-by-side which do not have a ground-to-roof
wall and/or have common facilities (i.e., attic,
basement, heating plant, plumbing, etc.). Accessory
dwelling units (ADUs) are not considered multi-family
residential.
N
O
Objective Design Standards. Objective standards
are defined under State law as “standards that
involve no personal or subjective judgement by a
public official and are uniformly verifiable by
reference to an external or uniform benchmark or
criteria available and knowable by both the
development applicant or proponent and the public
official prior to submittal “(California Government
Code, Section 65913.4).
P
Persons With Special Needs. Includes 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.
Planning Commission. An appointed commission
responsible for conducting public hearings on the
General Plan and Zoning Code modifications,
considering the input of the public, and making
recommendations to the Town Council on these
matters.
Planned Development. The Planned Development
(PD) overlay zone provides alternative standards for
housing developments with a minimum of 40 percent
of the units affordable to households of very low, low,
or moderate income.
Policy. A statement that guides a specific course of
action for decision-makers to achieve a desired goal.
Q
R
Regional Housing Need Allocation (RHNA). A
State-mandated process to identify the total number
of housing units (by affordability level) that each
jurisdiction must accommodate in its Housing
Element.
S
Setback. The distance between a building and the
property line or other buildings.
Single-Family Residential. Land with detached
buildings with not more than one primary dwelling
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unit for residential uses, such as single-family homes,
townhomes, and condominiums.
Specific Plan. A planning tool authorized by
Government Code Section 65450, et seq., for the
systematic implementation of the General Plan for a
defined portion of a community’s planning area. A
specific plan must specify in detail the land uses,
public and private facilities needed to support the
land uses, phasing of development, standards for the
conservation, development, and use of natural
resources, and a program of implementation
measures, including financing measures.
Small Multi-Unit Housing. Also known as “Missing
middle housing” is a term used to describe a range of
house-scale buildings with multiple units that are
compatible in scale and form with detached single-
family homes. Common housing types include
duplexes; triplexes; fourplexes; courtyard apartments;
cottage courts; townhomes; triplex stacked (vertical);
and live-work spaces.
T
Town Council. The political body which formulates
and implements policies in Los Gatos. It is the Town
Council, through its decision-making authority, that
affirms the policy direction and priorities contained
within this General Plan. The Town Council is
ultimately responsible for adoption of the General
Plan, as well as the regulations, capital improvement
programs, and financing mechanisms that implement
the General Plan.
U
V
Vacant Land. Land that is not actively used for any
purpose, including land that is not improved with
buildings or site facilities and is sizeable in area to
accommodate development.
W
Wildland/Urban Interface (WUI). Areas where
homes or other structures are built near or among
lands prone to wildland fire.
X
Y
Z
Zoning. The division of the Town into districts, and
the application of different regulations in each district.
Zoning District. A part of the community designated
by the local zoning ordinance for specific of land
uses, such as single-family residential or
neighborhood commercial uses. Only the primary
permitted land uses, their accessory uses, and any
conditional uses permitted in the zoning district may
be placed on the land in that part of the community.
Zoning Ordinance. The adopted zoning and
planning regulations of a town, city, or county that
establish development standards for each zone, such
as minimum lot size, maximum height of structures,
building setbacks, and yard size.
10.Housing Element
October 2022 HCD Draft Initial Review 2023-2031 Housing Element 10-63
List of Acronyms
AB Assembly Bill
ABAG Association of Bay Area Governments
ADA Americans with Disabilities Act
ADU Accessory dwelling unit
AFFH Affirmative Furthering Fair Housing
AHOZ Affordable Housing Overlay Zone
AMI Area Median Income
BMP Below Market Program
CBD Central Business District land use
designation
CC Community Commercial land use
designation
CD Community Design Element
CEQA California Environmental Quality Act
CMU Mixed-Use land use designation
CUP Conditional Use Permit
DFEH California Department of Fair
Employment in Housing
du/ac Dwelling units per acre
EIR Environmental Impact Report
FAR Floor area ratio
FFH Federal Fair Housing Act
HCD Department of Housing and Community
Development
HDR High Density Residential land use
designation
HDS&G Hillside Development Standards and
Guidelines
HEAB Housing Element Advisory Board
HR Hillside Residential land use designation
HUD Department of Housing and Urban
Development
LDR Low Density Residential land use
designation
LHP Landmark and Historic Preservation
Zone
LI Light Industrial land use designation
LID Low Impact Development
LU Land Use Element
MDR Medium Density Residential land use
designation
MTC Metropolitan Transportation
Commission
MU Mixed-Use land use designation
NFHA National Fair Housing Alliance
NF-SP North Forty Specific Plan
PD Planned Development
PS Public School Zone
RHNA Regional Housing Needs Allocation
RHND Regional Housing Needs Determination
RHM Mobile Home Residential
SB Senate Bill
WUI Wildland/Urban Interface
.
Affirmatively Furthering Fair Housing Report A
APPENDIX
Appendix A. AFFH Report
October 2022 Appendix A A-1
A.1 What is AFFH?
The State of California’s 2018 Assembly Bill (AB 686) requires that all public agencies in the state affirmatively
further fair housing (AFFH) beginning January 1, 2019. Public agencies receiving funding from the U.S.
Department of Housing and Urban Development (HUD) are also required to demonstrate their commitment to
AFFH. The Federal obligation stems from the fair housing component of the Federal Civil Rights Act mandating
Federal fund recipients to take “meaningful actions” to address segregation and related barriers to fair housing
choice.
AB 686 requires all public agencies to “administer programs and activities relating to housing and community
development in a manner that affirmatively furthers fair housing and take no action inconsistent with this
obligation.”1
AB 686 also makes changes to Housing Element Law to incorporate requirements to AFFH as part of the housing
element and General Plan to include an analysis of fair housing outreach and capacity, integration and
segregation, access to opportunity, disparate housing needs, and current fair housing practices.
Affirmatively Furthering Fair Housing
“Affirmatively furthering fair housing” means taking meaningful actions, in addition to
combating discrimination, that overcome patterns of segregation and foster inclusive communities
free from barriers that restrict access to opportunity based on protected characteristics.
Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken
together, address significant disparities in housing needs and in access to opportunity, replacing
segregated living patterns with truly integrated and balanced living patterns, transforming racially
and ethnically concentrated areas of poverty into areas of opportunity, and fosterin g and
maintaining compliance with civil rights and fair housing laws. The duty to affirmatively further fair
housing extends to all of a public agency’s activities and programs relating to housing and
community development. (Gov. Code, § 8899.50, subd.(a)(1).)”
Source: California Department of Housing and Community Development Guidance, 2021, page 14.
A.2 History of Segregation in the Region
The United States’ oldest cities have a history of mandating segregated living patterns and Northern California
cities are no exception. ABAG, in its recent Fair Housing Equity Assessment, attributes segregation in the Bay
Area to historically discriminatory practices, highlighting redlining and discriminatory mortgage approvals as well
as “structural inequities” in society, and “self-segregation” (i.e., preferences to live near similar people).
Researcher Richard Rothstein’s 2017 book The Color of Law: A Forgotten History of How Our Government
Segregated America chronicles how the public sector contributed to the segregation that exists today . Rothstein
highlights several significant developments in the Bay Area region that played a large role in where the region’s
non-White residents settled.
In 1955, builders began developing workforce housing for the Ford Corporation’s plant in the Bay Area , including
Santa Clara County. Initially the units were segregated as no one would sell to the local Black/African American
workers. The American Friends Service Committee (AFSC) worked to find builders who would build integrated
subdivisions. Unfortunately, after four purchased plots were subsequently rezoned to prevent integrated housing,
1 California Department of Housing and Community Development Guidance, 2021, page 9.
HCD Draft Initial Review 2023-2031 Housing Element
A-2 Appendix A October 2022
the original builder quit. After multiple additional iterations, Black/African American workers had “become so
discouraged about finding housing opportunities” that they began carpooling from outside cities such as
Richmond2.
A 2018 Berkeley publication titled, Racial Segregation in the San Francisco Bay Area, describes Los Gatos
among the “most segregated, heavily white cities in the county” with Santa Clara County containing “no truly
integrated city”3. The study also delved into the history of segregation, highlighting 1960s -era laws and practices
connected to urban renewal projects that displaced established communities of color. This was coupled with the
building of transportation infrastructure that resulted in a net loss of affordable housing due to a lack of one -for-
one replacement. Figure A-1 through Figure A-7 illustrates the demographic distribution within the Santa Clara
County.
2 Source: book The Color of Law: A Forgotten History of How Our Government Segregated America by Richard Rothstein, p 121.
3 Racial Segregation in the San Francisco Bay Area, Part 1 | Othering & Belonging Institute (berkeley.edu)
Appendix A. AFFH Report
October 2022 Appendix A A-3
Figure A-1 Percent Non-White Population by Census Block Groups, 2018
Source: California Department of Housing and Community Development AFFH Data Viewer
HCD Draft Initial Review 2023-2031 Housing Element
A-4 Appendix A October 2022
Figure A-2 White Majority Census Tracts
Source: California Department of Housing and Community Development AFFH Data Viewer
Appendix A. AFFH Report
October 2022 Appendix A A-5
Figure A-3 Asian Majority Census Tracts
Source: California Department of Housing and Community Development AFFH Data Viewer
HCD Draft Initial Review 2023-2031 Housing Element
A-6 Appendix A October 2022
Figure A-4 Hispanic Majority Census Tracts
Source: California Department of Housing and Community Development AFFH Data Viewer
Appendix A. AFFH Report
October 2022 Appendix A A-7
Figure A-5 Neighborhood Segregation by Census Tract, 2019
Source: California Department of Housing and Community Development AFFH Data Viewer
HCD Draft Initial Review 2023-2031 Housing Element
A-8 Appendix A October 2022
Figure A-6 Diversity Index by Block Group, 2010
Source: California Department of Housing and Community Development AFFH Data Viewer
Appendix A. AFFH Report
October 2022 Appendix A A-9
Figure A-7 Diversity Index by Block Group, 2018
Source: California Department of Housing and Community Development AFFH Data Viewer
HCD Draft Initial Review 2023-2031 Housing Element
A-10 Appendix A October 2022
History of Segregation in the Region
This history of segregation in the region is important not only to understand how residential
settlement patterns came about—but, more importantly, to explain differences in housing
opportunity among residents today. In sum, not all residents had the ability to build housing
wealth or achieve economic opportunity. This historically unequal playing field in part determines
why residents have different housing needs today.
In addition to historical discriminatory practices that embedded segregation into living patterns throughout the Bay
Area, it’s also necessary to recognize the historical impacts of colonization and genocide on Indigenous
populations and how the effects of those atrocities are still being felt today. The original inhabitants of present -
day San Mateo County are the Ramaytush Ohlone, who have “…lived on the San Francisco Peninsula for
thousands of years and continue to live here as respectful stewards of the land”4. However, “[d]ue to the
devastating policies and practices of a succession of explorers, missionaries, settlers, and v arious levels of
government over the centuries since European expansion, the Ramaytush Ohlone lost the vast majority of their
population as well as their land”5. The lasting influence of these policies and practices have contributed directly to
the disparate housing and economic outcomes collectively experienced by Native populations today 6.
The timeline of major Federal Acts and court decisions related to fair housing choice and zoning and land use
appears on the following page.
As shown in the timeline, exclusive zoning practices were common in the early 1900s. Courts struck down only
the most discriminatory and allowed those that would be considered today to have a “disparate impact” on
classes protected by the Fair Housing Act. For example, the 1926 case Village of Euclid v. Amber Realty Co.
(272 U.S. 365) supported the segregation of residential, business, and industrial uses, justifying separation by
characterizing apartment buildings as “mere parasite(s)” with the potential to “utterly destroy ” the character and
desirability of neighborhoods. At that time, multifamily apartments were the only housing options for people of
color, including immigrants.
The Federal Fair Housing Act was not enacted until nearly 60 years after the first racial Zoning Ordinances
appeared in U.S. cities. This coincided with a shift away from Federal control over low-income housing toward
locally-tailored approaches (block grants) and market-oriented choice (Section 8 subsidies), the latter of which is
only effective when adequate affordable rental units are available.
4 https://www.smcoe.org/for-communities/indigenous-people-of-san-mateo-county.html
5 https://www.smcoe.org/for-communities/indigenous-people-of-san-mateo-county.html
6 https://www.americanprogress.org/article/systemic-inequality-displacement-exclusion-segregation/
Appendix A. AFFH Report
October 2022 Appendix A A-11
Major Public and Legal Actions that Influence Fair Access to Housing
A.3 Report Content and Organization
This Fair Housing Assessment follows the April 2021 State of California State Guidance for AFFH.
Section I. Fair Housing Enforcement and Outreach Capacity reviews lawsuits/enforcement
actions/complaints against the jurisdiction; compliance with State fair housing laws and regulations; and
jurisdictional capacity to conduct fair housing outreach and education.
Section II. Integration and Segregation identifies areas of concentrated segregation, degrees of segregation,
and the groups that experience the highest levels of segregation
Section III. Access to Opportunity examines differences in access to education, economic development, and
healthy environments.
Section IV. Disparate Housing Needs identifies which groups have disproportionate housing needs including
displacement risk.
Section V. Contributing Factors and Fair Housing Action Plan identifies the primary factors contributing to
fair housing challenges and the Plan for taking meaningful actions to improve access to housing and economic
opportunity.
Appendices
▪ Map and Data packet, including Fair Housing Organizations in Santa Clara County —mission, services,
and contact information
HCD Draft Initial Review 2023-2031 Housing Element
A-12 Appendix A October 2022
▪ State Fair Housing Laws and Regulations—summary of key State laws and regulations related to
mitigating housing discrimination and expanding housing choice
A.4 Primary Findings
This section summarizes the primary findings from the Fair Housing Assessment for Los Gatos including the
following sections: fair housing enforcement and outreach capacity, integration and segregation, access to
opportunity, disparate housing needs, and contributing factors and the Town’s Fair Housing Action Plan.
▪ Population growth trends in Los Gatos are significantly lower than the county and regional index rates.
The Town has grown 15 percent since 1990, while Santa Clara County grew by 31 percent.
▪ Los Gatos diverges from the county and region overall in racial composition with more than double the
county share of non-Hispanic White population (72 percent versus 32 percent for Santa Clara County).
Yet Los Gatos’ residents have grown more racially diverse since 2000 with the non-Hispanic white
population declining by 14 percentage points and Asian reside nts increasing in population from eight
percent to 15 percent in 2019.
▪ Conversely, the types of households in Los Gatos mirror the county and are similar to the Bay Area with 58
percent married couples (57 percent in Santa Clara County and 51 percent in the Bay Area). Household
size is in line with the county, except for five or more person households, for which Los Gatos has a
smaller share.
▪ Los Gatos has a higher share of high-income earners (greater than 100 percent AMI) than the county and
Bay Area (65 percent versus 55 percent and 52 percent respectively). Accounting for race and ethnicity,
Asian households are much more likely to comprise high income earners (72 percent), especially when
compared to Black/African American and Hispanic households (50 percent and 46 percent, respectively).
▪ In 2015, the income segregation in Los Gatos between lower-income residents and other residents was
higher than the average value for Bay Area jurisdictions. Segregation also e xists among racial groups, yet
is slowly declining.
▪ Poverty rates are minimal but do vary across races and ethnicities with Hispanic residents experiencing
the highest poverty rate (although still a very low six percent) and Black/African Americans the lowest (0.7
percent).
▪ The job to household ratio for Los Gatos tracks closely with Bay Area and is lower than Santa Clara
County’s, indicating that Los Gatos is less of a commuter Town than surrounding jurisdictions with much
higher job to household ratios. This differs, however, by wage, with jobs to household ratios much higher
for low wage workers who cannot afford to live in the Town. Los Gatos has twice as many jobs as
households for low wage jobs.
▪ Los Gatos’ housing opportunities are limited by pricing, and both rental and home values are higher than
the county median. Eighty-three percent of houses are valued at more than one million dollars; Zillow
reports Los Gatos’ market average value at more than three million dollars. The average value of homes
in Los Gatos is 63 percent higher than the County’s 1.3-million-dollar average value. Sixty-three percent of
rentals charge 2,000 dollars or more a month, compared to 56 percent in Santa Clara County. Los Gatos
does not have any public housing and only a small portion of the Town contains any Housing Choice
Voucher usage, a minimal 0-5 percent.
▪ Nearly three-quarters of the Town’s housing are single-family units.
Appendix A. AFFH Report
October 2022 Appendix A A-13
▪ Housing cost burden in Los Gatos is lower than nearby cities but differs by race and ethnicity—and by
tenure (renters/owners). Asian households experience the lowest rates of cost burden (30 percent) in the
Town, followed by non-Hispanic White households (31 percent). This is followed by Black/African
American household (34 percent) and Hispanic households (37 percent). Other/Multiple Race households
(45 percent) are the most likely to be cost burdened (45 percent). Owners experience cost burden at a
lower rate (28 percent) than renters (42 percent).
▪ Mortgage denial rates vary little by race and ethnicity, with 55 percent to 65 percent of loans originated.
Other than Asian applicants, however, applications from non-White applicants are very low in numbers.
▪ Saratoga Elementary School, Los Gatos Union Elementary School, and Los Gatos -Saratoga Union High
School Districts serve the majority of Los Gatos residents. The most up-to-date performance rankings
show that the Los Gatos-Saratoga high school with very few Black/African American or Native American
students. Asian students experienced higher educational outcomes compared to other s tudents, scoring
93.8 percent in a 2019 College/Career Indicator metric. White and Hispanic students scored 71 percent
and 64.6 percent, respectively.
A.5 Contributing Factors and Fair Housing Issues
The disparities in housing choice and access to opportu nity discussed above stem from historical actions in the
broader region, socioeconomic factors that have limited employment and income growth among non-White and
Hispanic residents, and a shortage of housing units built to accommodate growth .
Fair Housing Issue
Los Gatos’ very low production of affordable and market rate housing limits housing choices of all
but the highest income households.
Contributing factors:
▪ Since 2010, Los Gatos added 2,000 residents while only building 342 housing units. This lack of
production has exacerbated an already tight housing market.
▪ The housing that was added in Los Gatos between 2015 and 2019 was largely priced for above moderate-
income households. Only 1.5 percent of housing permits approved were for low- or very- low-income
housing.
Fair Housing Issue
Los Gatos’ lack of affordable housing has a disproportionate impact on low- and moderate-income
households who are more likely to be households of color. As such, Los Gatos lacks racial and
ethnic diversity relative to the county overall.
Contributing factors:
▪ Black or African American and Hispanic residents typically work lower wage jobs, stemming from historical
employment discrimination and lack of access to quality educational environme nts. These jobs do not
support the Town’s very high housing costs.
HCD Draft Initial Review 2023-2031 Housing Element
A-14 Appendix A October 2022
▪ Low wage jobs are necessary to support higher wage industries. Los Gatos’ employment growth has not
been adequately supported by affordable housing development. As such, there are twic e as many low
wage jobs as residents in Los Gatos who work those jobs.
Fair Housing Issue
Los Gatos’ households are segregated by income, and income segregation is higher in the Town
than in other Bay Area jurisdictions.
Contributing factors:
▪ Lack of affordable housing overall.
▪ Segregation of the limited affordable housing that does exist into the north central portion of the Town.
Fair Housing Issue
Los Gatos feeds to high performing schools, yet, except for Asian students, students of color
cannot take advantage of these learning opportunities because they cannot afford to live in Los
Gatos.
Contributing factors:
▪ Lack of affordable housing overall.
A.6 Fair Housing Enforcement and Outreach Capacity
This section discusses fair housing legal cases and inquiries, fair housing protections and enforcement, and
outreach capacity.
Fair housing legal cases and inquiries. California fair housing law extends b eyond the protections in the Federal
Fair Housing Act (FHA). In addition to FHA protected classes—race, color, ancestry/national origin, religion,
disability, sex, and familial status—California law offers protections for age, sexual orientation, gender identity or
expression, genetic information, marital status, military or veteran status, and source of income (including Federal
housing assistance vouchers).
The California Department of Fair Employment in Housing (DFEH) was established in 1980 and is now the largest
civil rights agency in the United States. According to their website, DFEH’s mission is, “to protect the people of
California from unlawful discrimination in employment, housing and public accommodations (businesses) and
from hate violence and human trafficking in accordance with the Fair Employment and Housing Act (FEHA),
Unruh Civil Rights Act, Disabled Persons Act, and Ralph Civil Rights Act”7.
DFEH receives, evaluates, and investigates fair housing complaints. DFEH plays a particularly significant role in
investigating fair housing complaints against protected classes that are not included in Federal legislation and,
therefore, not investigated by HUD. DFEH’s website provides detailed instructions for filing a complaint, the
7 https://www.dfeh.ca.gov/aboutdfeh/
Appendix A. AFFH Report
October 2022 Appendix A A-15
complaint process, appealing a decision, and other frequently asked questions 8. Fair housing complaints can
also be submitted to HUD for investigation.
Additionally, Santa Clara County has a number of local resource and enforcement organizations:
▪ Project Sentinel: Assists with housing discrimination, mortgage foreclosures, rental issues, and more.
▪ Housing and Economic Rights Advocates (HERA) provides legal and advocacy for vulnerable Californians
facing discrimination and economic abuses.
▪ Bay Area Legal Aid engages in broad advocacy focused on helping low-income Bay Area residents lead
stable lives, including housing stability.
▪ The Law Foundation of Silicon Valley provides legal advocacy for social change with a focus on finding
stable homes for low-income residents.
▪ Senior Adults Legal Assistance is a law office dedicated to supporting elder residents obtain in dependent
living.
From 2013 to 2021, 391 fair housing complaints in Santa Clara County were filed with the U.S. Department of
Housing and Urban Development (HUD) or Fair Housing Advocates of Northern California (FHANC). Most of the
county’s valid complaints cited disability status as the bias. Of these complaints, 69 percent were considered
valid and proceeded to actionable responses. Los Gatos had eight total complaints.
Nationally, the National Fair Housing Alliance (NFHA) reported a “negligible” de crease in the number of
complaints filed between 2019 and 2020. The primary bases for complaints nationally of disability (55 percent)
were represented in Santa Clara County at a much lower rate (16 percent). Familial status represented eight
percent of complaints nationally, similar to the six percent of cases in the county. Figure A-8 and Figure A-9 show
the share of population by disability status within Santa Clara County and the distribution by census tra ct,
respectively.
NFHA identifies three significant trends in 2020 that are relevant for this AFFH:
▪ First, fair lending cases referred to the Department of Justice from Federal banking regulators has been
declining, indicating that State and local government entities may want to play a larger role in examining
fair lending barriers to homeownership.
8 https://www.dfeh.ca.gov/complaintprocess/
HCD Draft Initial Review 2023-2031 Housing Element
A-16 Appendix A October 2022
Figure A-8 Share of Population by Disability Status, 2019
Source: ABAG Housing Needs Data Workbook
Appendix A. AFFH Report
October 2022 Appendix A A-17
Figure A-9 Percent of Population with a Disability by Census Tract, 2019
Source: California Department of Housing and Community Development AFFH Data Viewer
HCD Draft Initial Review 2023-2031 Housing Element
A-18 Appendix A October 2022
▪ Second, NFHA identified a significant increase in the number of complaints of harassment - 1,071
complaints in 2020 compared to 761 in 2019.
Appendix A. AFFH Report
October 2022 Appendix A A-19
▪ Finally, NFHA found that 73 percent of all fair housing complaints in 2020 were processed by private fair
housing organizations, rather than State, local, and Federal government agencies—reinforcing the need
for local, active fair housing organizations and increased funding for such organizations 9.
Outreach and capacity. Santa Clara County, including Los Gatos, has a number of organizations dedicated to
assisting residents with legal services related to housing discrimination and general housing disputes. These
organizations are listed in Figure I-1 of the map and data appendix.
The Town also maintains a resource guide that highlights service providers across multiple categories focused on
housing and quality of life for underserved members of the community 10. Additionally, the Town provides links
and email addresses for citizens to participate in the ongoing Housing Element Update process, including links to
the agendas and staff reports for the Housing Element Advisory Board (HEAB) meetings.
Finally, the Town has a strong statement about inclusivity and directly addresses hate speech on its website 11.
Compliance with State law. Los Gatos is compliant with the following State laws that promote fair and affordable
housing. The Town has not been alleged or found in violation of the following:
▪ Housing Accountability Act (Gov. Code. Section 65589.5) requiring adoption of a Housing Element and
compliance with RHNA allocations;
▪ No Net Loss Law (Gov. Code Section 65863) requiring that adequate sites be maintained to
accommodate unmet RHNA allocations;
▪ Least Cost Zoning Law (Gov. Code. Section 65913.1);
▪ Excessive Subdivision Standards Law (Gov. Code. Section 65913.2);
▪ Limits on Growth Controls Law (Gov. Code. Section 65589.5).
Housing specific policies enacted locally.
▪ Los Gatos offers a density bonus program to comply with State law.
▪ It also has an affordable housing overlay zone; however, that zone applies to one property only.
▪ The Town allows relative diverse type of housing in residential zones. However, minimum lot area for
duplexes is quite generous (8,000 square feet). The Town could add flexibility for affordable duplexes—
particularly in areas near and within downtown.
▪ The Town requires that development of Accessory Dwelling Units under Town incentive programs be
affordable, and deed restricted to 80 percent AMI households.
▪ The Town’s Below Market Price program requirements apply to developments of five units and more and
require between 10 percent and 20 percent of units to be affordable to low- and moderate-income
households. In-lieu fees are only allowed in limited circumstances, which prioritizes unit development.
9 https://nationalfairhousing.org/2021/07/29/annual-fair-housing-report-shows-increase-in-housing-harassment/
10 Los-Gatos-Housing-Resources-Guide (losgatosca.gov)
11 https://www.losgatosca.gov/2604/Becoming-an-Inclusive-Community
HCD Draft Initial Review 2023-2031 Housing Element
A-20 Appendix A October 2022
Publicly-Assisted Housing. According to the California Department of Housing and Community Development
AFFH Data Viewer (HCD data viewer), Los Gatos does not have any public housing buildings. Additionally, only
a small portion of Los Gatos contains any Housing Choice Voucher usage, a minimal zero to five percent.
A.7 Integration and Segregation
This section discusses integration and segregation of the population by protected classes including race and
ethnicity, disability status, familial status, and income status. The section concludes with an analysis of racially
and ethnically concentrated areas of poverty and affluence.
Integration and Segregation
“Integration generally means a condition in which there is not a high concentration of persons of
a particular race, color, religion, sex, familial status, national origin, or having a disability or a
particular type of disability when compared to a broader geographic area.
Segregation generally means a condition in which there is a high concentration of persons of a
particular race, color, religion, sex, familial status, national origin, or having a disability or a type of
disability in a particular geographic area when compared to a broader geographic area.”
Race and ethnicity. Los Gatos differs from the county and Bay Area overall for its relatively high proportion of
residents identifying as non-Hispanic White (72 percent in Los Gatos compared to 32 percent in Santa Clara
County) and small Hispanic population (eight percent in Los Gatos and 25 percent in the county).
▪ Los Gatos’ proportion of Black/African American and Other and mixed-race residents is less proportional to
the County and the Bay Area overall (Figure A-10).
▪ Los Gatos’ residents have grown more racially diverse since 2000 largely due to growth in Asian and
Hispanic residents (Figure B-4).
▪ Older residents are less racially diverse than other age groups, with 87 percent of the population older than
65 years identifying as White compared to 77 percent of those aged 18 to 24 and 75 percent of children
less than 18 years old. The main shift is the inclusion of more diverse populations in younger age groups,
especially among Asian/API and Other/Multiple race residents (Figure B-3).
▪ Poverty rates are very low for all residents including residents of color. Black/African American have the
lowest poverty rate at less than 1 percent. The highest poverty rate was 6.1 percent among Hispanic
residents (Figure B-13).
Appendix A. AFFH Report
October 2022 Appendix A A-21
Figure A-10 Population by Race
Source: ABAG Housing Needs Data Workbook
15%
37%27%
6%
72%32%39%
4%
4%5%
8%
25%24%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Los Gatos Santa Clara County Bay AreaPercent of PopulationHispanic or Latinx
Other Race or Multiple Races, Non-Hispanic
White, Non-Hispanic
Black or African American, Non-Hispanic
Asian / API, Non-Hispanic
American Indian or Alaska Native, Non-Hispanic
HCD Draft Initial Review 2023-2031 Housing Element
A-22 Appendix A October 2022
Geospatially, almost all census tracts in Los Gatos have a predominantly White population (Figure A-2 above).
Compared with neighboring Monte Sereno, Los Gatos has a more varied neighborhood composition map and a
more even dispersion of residents of varied races and ethnicities, see Figure A-5 above. Overall, the Town has
low to moderate diversity (Figure A-6 and Figure A-7 above). The Town’s diversity index has improved since
2010 due to changes in racial and ethnic diversity in the northern and eastern portions of Town.
The Association of Bay Area Governments (ABAG), working with UC Merced, created a 2021 report on
segregation in Los Gatos that measured racial and income segregation within the community. This report, in its
entirety can be found in Appendix G. That report utilized several common measures of segregation:
▪ The Dissimilarity Index, or DI, is a common tool that measures segregation in a community. DI is an index
that measures the degree to which two distinct groups are evenly distributed across a geographic area . DI
represents the percentage of a group’s population that would have to move for each area in the county to
have the same percentage of that group as the county overall. DI values range from zero to 100—where
zero is perfect integration and 100 is complete segregation. Dissimilarity index values between zero and
39 generally indicate low segregation, values between 40 and 54 generally indicate moderate segregation,
and values between 55 and 100 generally indicate a high level of segregation.
▪ The isolation index is interpreted as the probability that a randomly drawn minority resident shares an area
with a member of the same minority, it ranges from zero to 100 and higher values of isolation tend to
indicate higher levels of segregation.
ABAG’s assessed measures of segregation above highlighted White residents as the most segregated in Los
Gatos. White residents are more likely than any other racial group to live in a neighborhood where they are
unlikely to come into contact with other racial groups. However, White residents are becoming less isolated over
time—and segregation in Los Gatos is decreasing.
Segregation by income increased between 2010 and 2015. In 2015, the income segregation in Los Gatos
between lower-income residents and other residents was higher than the average value for Bay Area jurisdictions.
Disability status. The share of the population living with at least one disability is nine percent in Los Gatos
compared to eight percent in Santa Clara County. Roughly a third of census tracts in Los Gatos contain 10
percent to 20 percent of persons with a disability, higher than most of the surrounding jurisdictions (Figure A-9
above).
Familial status. Familial status can indicate specific housing needs and preferences. A larger number of non -
family or single person households indicates a higher share of seniors living alone, young adults living alone or
with roommates, and unmarried partners. Higher shares of nonfamily households indicate an increased need for
one- and two-bedroom units.
Los Gatos’ households are as likely to be three to four person households (34 percent) as two person households
(35 percent). Compared to the county and Bay Area overall, Los Gatos mirrors the share of one person
households (26 percent compared to 20 percent in the county and 25 percent for the Bay Area). Married couple
households were the majority household type (58 percent) and 31 percent of all households have at least one
child under the age of 18. The share of single persons and female -headed households mirror the makeup in the
Bay Area.
The Town has no concentrations of adults living alone, suggesting that access to in -home services and care for
single, older adults is less critical for Los Gatos than some surrounding communities within the county. However,
the Town’s age distribution has shifted upwards since 2000 (Figure B-2) and these accommodations may grow in
demand if older adults, 55 and older, in Los Gatos age in place.
Appendix A. AFFH Report
October 2022 Appendix A A-23
Los Gatos’ married couples overwhelmingly own housing: seventy -seven percent of married couple families in the
Town own their homes.
Renters are more likely to occupy studios and one- and two-bedroom units than owners (Figure B-36), and
owners are more likely to be occupying three to four- and 5 or more-bedroom units. Owners and renters are
equally as likely to live alone.
Household income. Los Gatos’ households are higher-income than the county and Bay Area overall: 65 percent
of Los Gatos households earn more than 100 percent of the AMI, compared to 55 percent for the county and 52
percent for the Bay Area (Figure B-11, and infographic below).
Every block group in Los Gatos with available data has a median household income of $125,000 or more. In the
Town, Hispanic or Latinx and Other Race or Multiple Races (Hispanic and Non-Hispanic) residents experience
the highest rates of poverty, followed by White (Hispanic and Non-Hispanic) residents (Figure B-13).
Racially or ethnically concentrated areas of poverty and affluence. Racially Concentrated Area of Poverty or an
Ethnically Concentrated Area of Poverty (R/ECAP) and Racially Concentrated Areas of Affluence (RCAAs)
represent opposing ends of the segregation spectrum from racially or ethnically segregated areas with high
Segregation and Integration
Population by Protected Class
City of Los Gatos Santa Clara County
Race and Ethnicity
American Indian or Alaska Native, NH 0%0%
Asian / API, NH 15%37%
Black or African American, NH 1%2%
White, Non-Hispanic (NH)72%32%
Other Race or Multiple Races, NH 4%4%
Hispanic or Latinx 8%25%
Disability Status
With a disability 9%8%
Without a disability 91%92%
Familial Status
Female-Headed Family Households 8%10%
Male-headed Family Households 3%5%
Married-couple Family Households 58%57%
Other Non-Family Households 5%8%
Single-person Households 26%20%
Household Income
0%-30% of AMI 9%14%
31%-50% of AMI 8%11%
51%-80% of AMI 9%11%
81%-100% of AMI 9%9%
Greater than 100% of AMI 65%55%
0%
15%
1%
72%
4%
8%
0%
37%
2%
32%
4%
25%
9%
91%
8%
92%
8%
3%
58%
5%
26%
10%
5%
57%
8%
20%
9%
8%
9%
9%
65%
14%
11%
11%
9%
55%
Town
HCD Draft Initial Review 2023-2031 Housing Element
A-24 Appendix A October 2022
poverty rates to affluent predominantly White neighborhoods. Historically, HUD has paid particular attention to
R/ECAPs as a focus of policy and obligations to AFFH. Recent research out of the University of Minnesota
Humphrey School of Public Affairs argues for the inclusion of RCAAs to acknowledge current and past policies
that created and perpetuate these areas of high opportunity and exclusion 12.
It is important to note that R/ECAPs and RCAAs are not areas of focus because of racial and ethnic
concentrations alone. This study recognizes that racial and ethnic clusters can be a part of fair housing choice if
they occur in a non-discriminatory market. Rather, R/ECAPs are meant to identify areas where residents may
have historically faced discrimination and continue to be challenged by limited economic opportunity, and
conversely, RCAAs are meant to identify areas of particular advantage and exclusion.
R/ECAPs
HCD and HUD’s definition of a Racially/Ethnically Concentrated Area of Poverty is:
▪ A census tract that has a non-White population of 50 percent or more (majority-minority)
or, for non-urban areas, 20 percent, AND a poverty rate of 40 percent or more; OR
▪ A census tract that has a non-white population of 50 percent or more (majority-minority)
AND the poverty rate is three times the average tract poverty rate for the County,
whichever is lower.
Source: California Department of Housing and Community Development Guidance, 2021.
For this study, the poverty threshold used to qualify a tract as an R/ECAP was three times the average census
tract poverty rate countywide, or 22.5 percent.
There are no census tracts in Los Gatos that qualify as R/ECAPs. R/ECAPs in the county are all located in San
Jose.
RCAAs. At the time this report was written, HCD and HUD had not established standard definitions for Racially or
Ethnically Concentrated Areas of Affluence (RCAAs). However, these are generally understood to be
neighborhoods in which there are both high concentrations of non-Hispanic White households and high
household income rates. Comparing Los Gatos to the surrounding county and region, it is safe to speculate that
the Town has more RCAAs as other communities, the county, and the region.
A.8 Access to Opportunity
This section discusses disparities in access to opportunity among protected classes including access to quality
education, employment, and environment.
Access to Opportunity
“Access to opportunity is a concept to approximate place-based characteristics linked to critical
life outcomes. Access to opportunity oftentimes means both improving the quality of life for
residents of low-income communities, as well as supporting mobility and access to ‘high resource’
12 Goetz, E. G., Damiano, A., & Williams, R. A. (2019). Racially Concentrated Areas of Affluence: A Preliminary Investigation. Cityscape: A Journal of Policy
Development and Research, 21(1), 99–124
Appendix A. AFFH Report
October 2022 Appendix A A-25
neighborhoods. This encompasses education, employment, economic development, safe and
decent housing, low rates of violent crime, transportation, and other opportunities, including
recreation, food and healthy environment (air, water, safe neighborhood, safety from
environmental hazards, social services, and cultural institutions).”
Source: California Department of Housing and Community Development Guidance, 2021, page 34.
The California Tax Credit Allocation Committee (TCAC) in collaboration with HCD developed a series of
opportunity maps that help to identify areas of the community with good or poor access to opportunity for
residents. These maps were developed to align funding allocations with the goal of improving outcomes for low-
income residents—particularly children.
The opportunity maps highlight areas of highest resource, high resource, moderate resource, moderate resource
(rapidly changing), low resource and high segregation and poverty. TCAC provides opportunity maps for access
to opportunity in quality education, employment, transportation, and environment. Opportunity scores are
presented on a scale from zero to one and the higher the number, the more positive the outcomes.
TCAC’s economic opportunity score comprises poverty, adult educational attainment, employment, job proximity,
and median home value for Los Gatos and is shown in Figure A-11.
Figure A-11 Population Living in High Resource Areas by Race
Source: ABAG Housing Needs Data Workbook, California Tax Credit Allocation Committee (TCAC)/California Housing and Community Development
(HCD), Opportunity Maps (2020); U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B03002
16%
70%
9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Low Resource or High
Segregation and Poverty
Area
Moderate Resource Area High/Highest Resource
AreaPercent of PopulationHispanic or Latinx
Other Race or Multiple Races, Non-Hispanic
White, Non-Hispanic
Black or African American, Non-Hispanic
Asian / API, Non-Hispanic
American Indian or Alaska Native, Non-Hispanic
HCD Draft Initial Review 2023-2031 Housing Element
A-26 Appendix A October 2022
Education. TCAC’s education score is based on math proficiency, reading proficiency, high school graduation
rates, and the student poverty rate. According to TCAC’s educational opportunity map, every census tract in Los
Gatos scores higher than 0.75—indicating the highest positive educational outcomes. Opportunity scores are
presented on a scale from zero to one and the higher the number, the more positive the outcomes.
Los Gatos is served by the Los Gatos-Saratoga Union High School District, the Los Gatos Union Elementary
School, the Saratoga Elementary School Districts, Loma Prieta Joint Union Elementary, and Lakeside Joint
School District. The most complete data, due to halted data collection during the COVID pandemic, was from
2019 and highlights a 97.7 percent graduation rate among all students in the Los Gatos-Saratoga Union high
school, a small increase over 2018 (97.1 percent). When broken down by race/ethnicity, Asian students
graduated at a slightly higher rate of 98 percent, while Hispanic and White students graduated at 95 percent and
96.5 percent respectively. There were not enough African American students enrolled to provide accurate data
(less than 11 total). The lowest graduation rate was among students with a disability, yet still relatively high at 88
percent.
The Los Gatos Union Elementary served 2,710 students in 2021, down from 3,024 from 2019, the last year with
complete data. White students accounted for 64 percent of the student body, with Asian (19 percent) and
Hispanic students (9 percent) accounting for the majority of the remainder. The school included four percent
socioeconomically disadvantaged students, one homeless student, and seven percent students with a disability.
Saratoga Elementary had 1,657 students in 2021 and 1,765 in 2019. At Saratoga, 57 percent of students are
Asian and White students accounted for 26 percent and Hispanic students another six percent. Saratoga
Elementary served a student population with 11 percent disabilities, two percent socioeconomically
disadvantaged, and no homeless students.
Employment. The job to household ratio for Los Gatos tracks with the Bay Area and is lower than Santa Clara
County’s (Figure B-8), indicating that Los Gatos is less of a commuter city than surrounding jurisdictions with
much higher job to household ratios. This differs, however, by wage (Figure B-7), with jobs to household ratios
much higher for low wage workers who cannot afford to live in the Town. Los Gatos has twice as many jobs as
workers for low wage jobs.
▪ Notably, Los Gatos had 19,843 jobs (Figure B-5) in 2018 compared to 14,573 job holders (Figure III-3),
indicating a healthy job market for local residents and a need for in-commuting to fill the unoccupied jobs.
▪ Most jobs in Los Gatos are in Financial and Professional Services and Health and Educational Services
(Figure B-9).
▪ Unemployment in Los Gatos is five percent, below the county and area averages (Figure B-10).
HUD’s job proximity index shows that Los Gatos offers a moderate to high proximity to jobs. On a scale from zero
to 100, where 100 is the closest proximity to jobs, the areas near Highway 17 score within the high proximity
range, while most of the remaining parts of the Town scores as moderate proximity. The further away from
Highway 17, the lower the proximity to jobs.
Environment. TCAC’s opportunity areas environmental scores are based on the CalEnviroScreen four indicators,
which identify areas disproportionately vulnerable to pollution sources such as ozone, PM2.5, diesel PM,
pesticides, toxic release, traffic, cleanup sites, groundwater threats, hazardous waste, impaired water bodies, and
solid waste sites.
Three-quarters of Los Gatos scores low on positive environmental outcomes, with no census tracts in the Town
scoring over 0.5 out of one (Figure A-12). Los Gatos almost uniformly had the lowest possible scores according
to the CalEnviroScreen metric for 2021.
Appendix A. AFFH Report
October 2022 Appendix A A-27
Figure A-12 CalEnviroScreen 4.0, Los Gatos
Source: California Office and Environmental Health Hazard Assessment, CalEnviroScreen Maps and Data.
The Town scores high on California Healthy Places Index (HPI) developed by the Public Health Alliance of
Southern California (PHASC) (Figure A-13). HPI includes 25 community characteristics in eight categories
including economic, social, education, transportation, neighborhood, housing, clean environment, and
healthcare13.
13 https://healthyplacesindex.org/about/
HCD Draft Initial Review 2023-2031 Housing Element
A-28 Appendix A October 2022
Figure A-13 California Healthy Places Index, Los Gatos
Source: Public Health Alliance of Southern California, California Healthy Places Index.
Disparities in access to opportunity. All residents live in highly resourced areas, regardless of race or ethnicity
(Figure A-11). Los Gatos and other surrounding areas are entirely high opportunity jurisdictions.
The Social Vulnerability Index (SVI) provided by the Center for Disease Contr ol (CDC)—ranks census tracts
based on their ability to respond to a disaster—includes four themes of socioeconomic status, household
composition, race or ethnicity, and housing and transportation. Los Gatos scores well on the SVI; with no
neighborhoods ill equipped to respond to disasters.
Los Gatos does not have any disadvantaged communities as defined under SB 535 as, “the top 25 percent
scoring areas from CalEnviroScreen along with other areas with high amounts of pollution and low populations”14.
Disparities specific to the population living with a disability. Nine percent of the population in Los Gatos is living
with at least one disability, compared to eight percent in the county. The most common disabilities in Los Gatos
are ambulatory (4.8 percent), independent living difficulty (4.3 percent), and hearing difficulty (3.6 percent). For
the population 65 and over, the share of the population with ambulatory difficulties increases to 18.4 percent,
independent living difficulty increase to 15.2 percent, and hearing difficulty was 13.8 percent. 15 percent of
residents with a disability were unemployed in 2019, while only four percent unemployment for residents without a
disability.
14 https://oehha.ca.gov/calenviroscreen/sb535
Appendix A. AFFH Report
October 2022 Appendix A A-29
Disability
“Disability types include hearing difficulty, vision difficulty, cognitive difficulty, ambulatory
difficulty, self-care difficulty, and independent living difficulty.”
Source: California Department of Housing and Community Development Guidance, 2021, page 36.
Access to Opportunity
Regional Access
City of Los Gatos Santa Clara County
Jobs to Household Ratio 1.59 1.71
Unemployment Rate 5%6%
LEP Population 2%9%
Share of Population by Race in Resource Areas in the City of Los Gatos
Employment by Disability Status
For those in the labor
0%0%
16%
0%
1%
0%
70%
0%
4%
0%
9%
Moderate Resource Area
High/Highest Resource Area
American Indian or Alaska Native, NH Asian / API, NH
Black or African American, NH White, Non-Hispanic (NH)
Other Race or Multiple Races, NH Hispanic or Latinx
96%
85%
4%
15%
No Disability
With A Disability
City of Los Gatos
96%
90%
4%
10%
No Disability
With A Disability
Employed Unemployed
Santa Clara County
Town
Town of Los Gatos
Town
HCD Draft Initial Review 2023-2031 Housing Element
A-30 Appendix A October 2022
A.9 Disproportionate Housing Needs
This section discusses disparate housing needs for protected classes including cost burden and severe cost
burden, overcrowding, substandard housing conditions, homelessness, displacement, and other considerations.
Disproportionate Housing Needs
“Disproportionate housing needs generally refers to a condition in which there are significant
disparities in the proportion of members of a protected class experiencing a category of housing
need when compared to the proportion of members of any other relevant groups, or the total
population experiencing that category of housing need in the applicable geographic area. For
purposes of this definition, categories of housing need are based on such factors as cost burden
and severe cost burden, overcrowding, homelessness, and substandard housing conditions.”
Source: California Department of Housing and Community Development Guidance, 2021, page 39.
Housing Needs. Since 2015, the housing that has received permits to accommodate growth has almost
exclusively been priced for the higher incomes, with only two units permitted for low-income households and none
for very low-income households.
▪ The vast majority of the Town’s homes were built between 1940 and 1979 (69 percent). After this period,
housing production slowed, with only three percent of units built since 2010.
▪ Los Gatos housing is becoming more limited by type with 76 percent single-family units, up from 71
percent in 2010. Multifamily housing, with five or more units, made up the second highest category of units
(18 percent); there were sixty-four mobile/manufactured homes in Los Gatos15.
▪ Eighty-four percent of owner-occupied homes in Los Gatos are valued over one million dollars with another
39 percent valued above two million dollars. This compares to 48 percent for the county and 35 percent
for the Bay Area overall (Figure B-23). According to the Zillow Home Value Index, home values in Los
Gatos are 63 percent higher than home values for the county and almost double the cost of housing in the
Bay Area (Figure B-24).
▪ Rents in Los Gatos are most likely to be at least $2,000 per month (63 percent); 24 percent rent for $3,000
per month. While the Town’s rental costs higher than in the county, the trend of increasing rental costs
matches the changes in the county and Bay Area overall.
Cost burden and severe cost burden. Despite Los Gatos’ comparably high housing costs, cost burden—which
occurs when households spend more than 30 percent of their gross income on housing costs—is slightly better
than the county and Bay Area (Figure A-15). This is indicative of a market with high barriers to entry. The lack of
publicly subsidized housing and opportunity for use of Housing Choice Vouchers limits the ability of low-income
households (who are typically cost burdened) to live in the Town.
Cost burden does vary by tenure (renter or ownership) in Los Gatos , Figure A-16. Renters experience a greater
share of all forms of cost burden while owners experienced less of a cost burden. The cost burden by income
decreases for each increase in earned income (AMI category) with a vast difference between the highest and
lowest income groups. Seventy-eight percent of the lowest income group (zero percent to 30 percent of AMI) pay
15 Housing Needs Data Report: Los Gatos, ABAG/MTC Staff and Baird + Driskell Community Planning, 2021.
Appendix A. AFFH Report
October 2022 Appendix A A-31
more than 50 percent of their gross household incomes in housing costs (Figure A-16). Figure A-14 identifies the
housing vouchers distribution by tract within Los Gatos.
Figure A-14 Housing Choice Vouchers by Census Tract
Source: California Department of Housing and Community Development AFFH Data Viewer
HCD Draft Initial Review 2023-2031 Housing Element
A-32 Appendix A October 2022
Figure A-15 through Figure A-19 shows cost burden distribution by jurisdiction, tenure, Area Median Income
(AMI), race and ethnicity, and the size of the families . Renters experience a greater share of all forms of cost
burden (42 percent) while owners experienced 28 percent cost burden (Figure A-16). The cost burden by income
decreases for each increase in earned income (AMI category) with a vast difference between the highest and
lowest income groups (16 percent versus 90 percent). Seventy-eight percent of the lowest income group pay
more than 50 percent of their gross household incomes in housing costs.
There is consistency in housing cost burden in Los Gatos by race and ethnicity. All households have similar
shares of residents paying less than 30 percent of their income on housing. Hispanic and Black/African American
residents were the only groups to experience a greater percentage of households spending 50 percent or more of
their income than 30 percent to 50 percent of their income, indicating larger shares of extreme cost burdens, see
Figure A-18.
Figure A-15 Overpayment (Cost Burden) by Jurisdiction, 2019
Source: ABAG Housing Needs Data Workbook
Figure A-16 Overpayment (Cost Burden) by Tenure, Los Gatos, 2019
Source: ABAG Housing Needs Data Workbook
Appendix A. AFFH Report
October 2022 Appendix A A-33
Figure A-17 Overpayment (Cost Burden) by AMI, Los Gatos, 2019
Source: ABAG Housing Needs Data Workbook
Figure A-18 Overpayment (Cost Burden) by Race and Ethnicity, Los Gatos, 2019
Source: ABAG Housing Needs Data Workbook
HCD Draft Initial Review 2023-2031 Housing Element
A-34 Appendix A October 2022
Figure A-19 Overpayment (Cost Burden) by Family Size, Los Gatos, 2019
Source: ABAG Housing Needs Data Workbook
Appendix A. AFFH Report
October 2022 Appendix A A-35
Figure A-20 Overpayment (Cost Burden) for Renter Households by Census Tract, 2019
Source: California Department of Housing and Community Development AFFH Data Viewer
HCD Draft Initial Review 2023-2031 Housing Element
A-36 Appendix A October 2022
Figure A-21 Overpayment (Cost Burden) for Owner Households by Census Tract, 2019
Source: California Department of Housing and Community Development AFFH Data Viewer
Appendix A. AFFH Report
October 2022 Appendix A A-37
Overcrowding. The vast majority of households (97 percent) in Los Gatos are not overcrowded—indicated by
more than one occupant per room (Figure A-22). Renter households are more likely to be overcrowded, with six
percent of renter households with more than one occupant per room, compared to 0.3 percent of owner
households (Figure B-32).
Figure A-22 Overpayment (Cost Burden) for Owner Households by Census Tract, 2019
Source: ABAG Housing Needs Data Workbook, U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability
Strategy (CHAS) ACS tabulation, 2013-2017 release
Hispanic residents experience the highest rates of overcrowding (Figure B-34). The rest of the Town’s population
experiences approximately two percent to 3.5 percent overcrowding.
97%92%93%
5%4%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Los Gatos Santa Clara County Bay AreaPercent of Households1.00 occupants per room or less 1.01 to 1.50 occupants per room
1.50 occupants per room or more
HCD Draft Initial Review 2023-2031 Housing Element
A-38 Appendix A October 2022
Figure A-23 Occupants per Room by Jurisdiction, 2019
Source: ABAG Housing Needs Data Workbook
Figure A-24 Occupants per Room by Tenure, Los Gatos, 2019
Source: ABAG Housing Needs Data Workbook
Figure A-25 Overcrowding by Race and Ethnicity, Los Gatos, 2019
Source: ABAG Housing Needs Data Workbook
Appendix A. AFFH Report
October 2022 Appendix A A-39
Figure A-26 Occupants per Room by AMI, Los Gatos, 2019
Source: ABAG Housing Needs Data Workbook
HCD Draft Initial Review 2023-2031 Housing Element
A-40 Appendix A October 2022
Figure A-27 Overcrowded Households by Census Tract, 2019
Source: California Department of Housing and Community Development AFFH Data Viewer
Appendix A. AFFH Report
October 2022 Appendix A A-41
Substandard housing. Data on housing condition are limited, with the most consistent data available across
jurisdictions found in the American Community Survey (ACS)—which captures units in substandard condition as
self-reported in Census surveys. Renters in Los Gatos report living in substandard housing in 5.5 percent of
housing units, with the more units lacking complete kitchen facilities (4.1 percent). As shown in Figure A-28,
about 0.4 percent of owner households are lacking complete kitchens and 0.6 percent lack complete plumbing.
Figure A-28 Percent of Units Lacking Complete Kitchen and Plumbing Facilities, Los Gatos, 2019
Source: ABAG Housing Needs Data Workbook
Homelessness. In 2019, 9,706 people were experiencing homelessness in the county during the one-day count
(point-in-time), with only 18 percent of people in emergency or transitional shelter while the remaining 82 percent
were unsheltered. The majority of unsheltered people experiencing homelessness were in households without
children. The majority of people in transitional housing were in households with childre n or people without
children, as shown in Figure A-29.
People who identify as American Indian or Alaskan Native (approximately eight percent of the homeless
population compared to less than one percent of the total population), Black (approximately 19 percent, compared
to two and a half percent of the total population), , and Other Race or Multiple Races (approximately 24 percent
compared to 16 percent of the total population) are overrepresented in the homeless population compared to their
share of the general population, as shown in Figure A-30. People struggling with chronic substance abuse (35
percent), severe mental illness (42 percent), and post-traumatic stress disorder (33 percent) represented a
substantial share of the homeless population in 2019. Losing a job or being evicted was reported to be the causal
events that led to homelessness in 44 percent of incidents of homelessness 16.
16 According to Santa Clara County’s Homeless Census & Survey (2019); 2019 SCC Homeless Census and Survey Exec Summary.pdf (sccgov.org).
HCD Draft Initial Review 2023-2031 Housing Element
A-42 Appendix A October 2022
Figure A-29 Homelessness by Household Type and Shelter Status, Santa Clara County, 2019
Source: ABAG Housing Needs Data Workbook
Figure A-30 Share of General and Homeless Populations by Race, Santa Clara County, 2019
Source: ABAG Housing Needs Data Workbook
Sheltered - Emergency Shelter 7 377 696
Sheltered - Transitional Housing 3 301 400
Unsheltered 266 243 7,413
People in
Households
Solely Children
People in
Households
with Adults
and Children
People in
Households
Without
Children
Appendix A. AFFH Report
October 2022 Appendix A A-43
Displacement. According to the Sensitive Communities map of vulnerable communities, one area north of
Highway 9 and west of Highway 17 were vulnerable to displacement. The Town has 169 assisted units, but all
were rated as low risk of conversion. Figure A-31 illustrates the social vulnerability index, identifying the census
tracts by lower or higher social vulnerability.
Figure A-31 Social Vulnerability Index by Census Tract, 2018
Source: California Department of Housing and Community Development AFFH Data Viewer
HCD Draft Initial Review 2023-2031 Housing Element
A-44 Appendix A October 2022
Displacement Sensitive Communities
“According to the Urban Displacement Project, communities were designated sensitive if they met
the following criteria:
▪ They currently have populations vulnerable to displacement in the event of increased
redevelopment and drastic shifts in housing cost. Vulnerability is defined as:
▪ Share of very low-income residents is above 20 percent, 2017
AND the tract meets two of the following criteria:
▪ Share of renters is above 40 percent, 2017
▪ Share of people of color is above 50 percent, 2017
▪ Share of very low-income households (50 percent AMI or below) that are severely rent
burdened households is above the county median, 2017
▪ They or areas in close proximity have been experiencing displacement pressures.
Displacement pressure is defined as:
▪ Percent change in rent above county median for rent increases, 2012-2017
OR
▪ Difference between tract median rent and median rent for surrounding tracts above median
for all tracts in county (rent gap), 2017”
Source: https://www.sensitivecommunities.org/.
Access to mortgage loans. In many communities, disparities by race and ethnicity are prevalent for home
mortgage applications, particularly in denial rates. This is less true in Los Gatos (Figure A-32). Mortgage denial
rates range from 17 percent to 25 percent. American Indian or Alaska Native, Non-Hispanic and Black/African
American residents experienced the next highest rejection rate at 25 percent and 22 percent.
Appendix A. AFFH Report
October 2022 Appendix A A-45
Figure A-32 Mortgage Applications and Acceptance by Race, 2018 and 2019
Source: ABAG Housing Needs Data Workbook, Federal Financial Institutions Examination Council's (FFIEC) Home Mortgage Disclosure Act
loan/application register (LAR) files.
11%
25%15%
22%
17%18%17%
25%
13%
11%
12%14%11%
25%
5%5%
25%
66%56%65%59%64%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
American
Indian or
Alaska
Native, Non-
Hispanic
Asian / API,
Non-Hispanic
Black or
African
American,
Non-Hispanic
White, Non-
Hispanic
Hispanic or
Latinx
UnknownLoan ApplicationsLoan originated
File closed for incompleteness
Application withdrawn by applicant
Application denied
Application approved but not accepted
HCD Draft Initial Review 2023-2031 Housing Element
A-46 Appendix A October 2022
Disproportionate Housing Needs
Cost Burden, City of Los Gatos, 2019
Area Median Income (AMI)
Overcrowding, City of Los Gatos, 2019
Occupants per Room by Tenure
Substandard Housing, City of Los Gatos, 2019
Incomplete Kitchen and Plumbing Facilities by Tenure
Homelessness, Santa Clara County, 2019
Race and Ethnicity
Share of Homeless
Population
Share of Overall
Population
American Indian or Alaska Native 8%1%
Asian / API 5%37%
Black or African American 19%2%
White 44%44%
Other Race or Multiple Races 24%16%
Displacement, 2020
Assisted Units at High or Very
High Risk of Displacement City of Los Gatos Santa Clara County
Number of Units 0 0
% of Assisted Units 0%0%
10%
28%
39%
49%
84%
12%
22%
38%
33%
12%
78%
49%
22%
4%
0%-30% of AMI
31%-50% of AMI
51%-80% of AMI
81%-100% of AMI
100%+ of AMI
0%-30% of Income Used for Housing 30%-50% of Income Used for Housing
50%+ of Income Used for Housing
0.4%
0.6%
4.1%
1.4%
Kitchen
Plumbing
Owner Renter
2.1%
4.3%
0.3%
0.3%
1.0 to 1.5 Occupants per Room
More than 1.5 Occupants per Room
Owner Renter Series3
1.5+ Occupants
per Room
1-1.5 Occupants
per Room
Town
Town
Town
This Page Intentionally Left Blank
Housing Needs Assessment B
APPENDIX
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-1
B.1 Introduction
This appendix of the Housing Element describes existing housing needs and conditions in the Town of Los Gatos.
The analysis in this section primarily utilizes data compiled by Association of Bay Area Governments/
Metropolitan Transportation Commission (ABAG/MTC) in the “Housing Needs Data Report: Los Gatos”
(ABAG/MTC, Baird + Driskell Community Planning, April 2, 2021). This data packet was approved by the
California Department of Housing and Community Development (HCD).
Overview of Bay Area Housing
The Bay Area continues to see growth in both population and jobs, which means more housing of various types
and sizes is needed to ensure that residents across all income levels, ages, and abilities have a place to call
home. While the number of people drawn to the region over the past 30 years has steadily increased, housing
production has stalled, contributing to the housing shortage that communities are experiencing to day. In many
communities, this has resulted in residents being priced out, increased traffic congestion caused by longer
commutes, and fewer people across incomes being able to purchase homes or meet surging rents.
The 2023-2031 Housing Element Update provides a roadmap for how to meet growth and housing challenges.
As required by the State, the Housing Element identifies what the existing housing conditions and community
needs are, reiterates goals, and creates a plan for more housing.
Summary of Key Facts
▪ Population – Generally, the population of the Bay Area continues to grow because of new births (natural
growth) and the strong economy draws new residents to the region. The population of the Town of Los
Gatos increased by 10 percent from 2000 to 2020, which is below the growth rate of the Bay Area.
▪ Age – In 2019, the youth population of the Town, under the age of 18, was 6,767 and the senior
population, 65 and older, was 6,393. These age groups represent 22. percent and 20.8 percent,
respectively, of the Town’s population.
▪ Race/Ethnicity – In 2020, 72.3 percent of the Town of Los Gatos population was White, while 0.9 percent
was African American, 14.8 percent was Asian, and 7.9 percent was Latinx. People of color in Los Gatos
comprise a proportion below the overall proportion in the Bay Area as a whole 0F
1.
▪ Employment – The Town of Los Gatos residents most commonly work in the Financial and Professional
Services industry. From January 2010 to January 2021, the unemployment rate in the Town decreased by
2.9 percent. Since 2010, the number of jobs located in the jurisd iction increased by 4,440 (28.8 percent).
Additionally, the jobs-household ratio in the Town of Los Gatos has increased from 1.32 jobs per
household in 2002 to 1.59 in 2018.
▪ Number of Homes – The number of new homes built in the Bay Area has not kept pace with the demand,
resulting in longer commutes, increasing prices, and exacerbating issues of displacement and
homelessness. The number of homes in the Town of Los Gatos increased 4.5 percent from 2010 to 2020,
1 The Census Bureau’s American Community Survey accounts for ethnic origin separate from racial identity. The numbers reported here use an accounting
of both such that the racial categories are shown exclusive of Latinx status, to allow for an accounting of the Latinx population regardless of racial identity.
The term Hispanic has historically been used to describe people from numerous Central American, South American, and Caribbean countries. In recent
years, the term Latino or Latinx has become preferred. This report generally uses Latinx, but occasionally when discussing US Census data, we use Hispanic
or Non-Hispanic, to clearly link to the data source.
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B-2 Appendix B October 2022
which is below the growth rate for Santa Clara County and below the growth rate of the region’s housing
stock during this time period1F
2.
▪ Home Prices – A diversity of homes at all income levels would create opportunities for all of the Los Gatos
community to live in Town.
✓ Ownership – The largest proportion of homes had a value greater than $2 million in 2019. Home
prices increased by 98.4 percent from 2010 to 2020.
✓ Rental Prices – The typical contract rent for an apartment in the Town of Los Gatos was $2,270 in
2019. Rental prices increased by 60.9 percent from 2009 to 2019. To rent a typical apartment
without cost burden, a household would need to make $90,960 per year2F
3.
▪ Housing Type – It is important to have a variety of housing types to meet the needs of a community today
and in the future. In 2020, 60 percent of homes in the Town of Los Gatos were single-family detached, 13
percent were single-family attached, 9 percent were small multi-family (two to four units), and 18 percent
were medium or large multi-family (five or more units). Between 2010 and 2020, the number of single-
family units increased more than multi-family units. Los Gatos has a higher portion of detached single-
family homes than other jurisdictions in the region.
▪ Housing Demand – The Town is populated with a higher share of high-income earners (65% greater than
100% of AMI) than the rest of the county, therefore, housing is built for these higher income and amenit y
levels. Without goals, policies and programs that specifically address the need to build “affordable
housing” targeting incomes less than 100% of AMI (not above greater than 100% AMI), it is highly unlikely
developers will voluntarily build housing for low and very-low-income levels.
▪ Cost Burden – The U.S. Department of Housing and Urban Development (HUD) considers housing to be
affordable for a household if the household spends less than 30 percent of its income on housing costs. A
household is considered “cost-burdened” if it spends more than 30 percent of its monthly income on
housing costs, while those who spend more than 50 percent of their income on housing costs are
considered “severely cost-burdened.” In the Town of Los Gatos, 20 percent of households spend 30
percent to 50 percent of their income on housing, while 16 percent of households are severely cost
burdened and use the majority of their income for housing.
▪ Displacement/Gentrification – According to research from the University of California (UC), Berkeley no
households in the Town of Los Gatos live in neighborhoods that are susceptible to or experiencing
displacement, and none live in areas at risk of or undergoing gentrification. All households in the Town live
in neighborhoods where low-income households are likely excluded due to prohibitive housing costs.
▪ Neighborhood – All residents in Los Gatos live in neighborhoods identified as “Highest Resource” or
“High Resource” areas by State-commissioned research, while no residents live in areas identified by this
research as “Low Resource” or “High Segregation and Poverty” areas. These neighborhood designations
are based on a range of indicators covering areas such as education, poverty, proximity to jobs and
economic opportunities, low pollution levels, and other factors3F
4.
2 According to HCD Annual Progress Report Dashboard (as of September 20, 2021).
3 Note that contract rents may differ significantly from, and often being lower than, current listing prices.
4 For more information on the “opportunity area” categories developed by HCD and the California Tax Credit Allocation Committee, see this website:
https://www.treasurer.ca.gov/ctcac/opportunity.asp. The degree to which different jurisdictions and neighborhoods have access to opportunity will likely
need to be analyzed as part of new Housing Element requirements related to affirmatively furthering fair housing. ABAG/MTC will be providing
jurisdictions with technical assistance on this topic this summer, following the release of additional guidance from HCD.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-3
▪Special Housing Needs – Some population groups may have special housing needs that require specific
program responses, and these groups may experience barriers to accessing stable housing due to their
specific housing circumstances. In Los Gatos, 9 percent of residents have a disability (physical,
developmental, etc.), and may require accessible housing. Additionally, 6 percent of Los Gatos
households are larger households with five or more people and likely need larger housing units with three
bedrooms or more. 8.2 percent of households are female-headed families, which are often at greater risk
of housing insecurity.
B.2 Population, Employment , and Household
Characteristics
Population
The Bay Area is the fifth-largest metropolitan area in the nation and has seen a steady increase in population
since 1990, except for a dip during the Great Recession. Many towns and cities in the region have experienced
significant growth in jobs and population. While these trends have led to a corresponding increase in demand for
housing across the region, the regional production of housing has largely not kept pace with job and population
growth.
According to the data, the population of the Town of Los Gatos was estimated to be 31,439 in 2020. The
population of Los Gatos makes up 1.6 percent of Santa Clara County4F
5. In Los Gatos, roughly 13.5 percent of its
population moved during the past year, a number that is roughly the same as the regional rate of 13.4 percent.
Table B-1 shows population growth trends for the Town of Los Gatos, Santa Clara County, and the Bay Area as a
whole.
Table B-1 Population Growth Trends
Geography 1990 1995 2000 2005 2010 2015 2020
Town of Los Gatos 27,357 28,751 28,592 28,872 29,413 30,807 31,439
Santa Clara County 1,497,577 1,594,818 1,682,585 1,752,696 1,781,642 1,912,180 1,961,969
Bay Area 6,020,147 6,381,961 6,784,348 7,073,912 7,150,739 7,595,694 7,790,537
SOURCE: California Department of Finance, E-5 series.
NOTE: Universe: Total population; Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP -01.
Since 2000, the Town of Los Gatos population has increased by approximately 10 percent, which is below the
rate for the region as a whole, at 14.8 percent. From 1990 to 2000, the population increased by 4.5 percent.
During the first decade of the 2000’s the population increased by 2.9 percent. In the most recent decade, the
population increased by 6.9 percent. Figure B-1 shows population growth trends in percentages.
In 2019 the Town of Los Gatos annexed 24 urban islands totaling 116.1 acres. The islands were comprised of
approximately 308 single-family residences and the staff report assumed 2.2 persons per household for an
estimated increase in population of 678.
5 To compare the rate of growth across various geographic scales, Figure B-1 shows population for the jurisdiction, county, and region indexed to the
population in the year 1990. This means that the data points represent the population growth (i.e., percent change) in each of these geographies relative
to their populations in 1990.
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B-4 Appendix B October 2022
Figure B-1 Population Growth Trends
Source: California Department of Finance, E-5 series.
Note: The data shown on the graph represents population for the jurisdiction, county, and region indexed to the population in the first
year shown. The data points represent the relative population growth in each of these geographies relative to their populatio ns in that
year. For some jurisdictions, a break may appear at the end of each decade (1999, 2009) as estimates are compared to census counts. DOF
uses the decennial census to benchmark subsequent population estimates. Data from ABAG/MTC Housing Needs Data Packet Workbook,
Table POPEMP-01
Age
The distribution of age groups in a community shapes what types of housing the community may need in the near
future. An increase in the older population may mean there is a developing need for more senior housing options,
while higher numbers of children and young families can point to the need for more family housing options and
related services. There has also been a move by many to age-in-place or downsize to stay within their
communities, which can mean more multi-family and accessible units are needed.
In the Town of Los Gatos, the median age in 2000 was approximately 41 years. By 2019, the median age
increased to approximately 47 years. The cohorts age 25 to 34 and age 35 to 44 decreased between 2000 and
2019, while all age cohorts 55 and above increased during the same time period. Figure B-2 shows population by
age for the years 2000, 2010, and 2019 for the Town of Los Gatos.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-5
Figure B-2 Los Gatos Population by Age, 2000-2019
Source: U.S. Census Bureau, Census 2000 SF1, Table P12; U.S. Census Bureau, Census 2010 SF1, Table P12; U.S. Census Bureau, American
Community Survey 5-Year Data (2015-2019), Table B01001. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-
04.
Note: Universe: Total population.
Looking at the senior and youth population by race can add an additional layer of understanding, as families and
seniors of color are even more likely to experience challenges finding affordable housing. People of color 5F
6 make
up 13.4 percent of seniors and 23.7 percent of youth under 18. Figure B-3 shows population age by race for the
Town of Los Gatos.
6 Here, all non-white racial groups are counted.
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B-6 Appendix B October 2022
Figure B-3 Los Gatos Population Age by Race
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B01001(A-G). Data from ABAG/MTC Housing
Needs Data Packet Workbook, Table SEN-02.
Notes: Universe: Total population. In the sources for this table, the Census Bureau does not disaggregate racial groups by Hispanic/Latinx
ethnicity, and an overlapping category of Hispanic / non-Hispanic groups has not been shown to avoid double counting in the stacked bar
chart.
Race and Ethnicity
Understanding the racial makeup of the Town and region is important for designing and implementing effective
housing policies and programs. These patterns are shaped by both market factors and government actions, such
as exclusionary zoning, discriminatory lending practices , and displacement that has occurred over time and
continues to impact communities of color today6F
7.
Since 2000, the percentage of residents in the Town of Los Gatos identifying as White, Non-Hispanic has
decreased by 13.3 percentage points, with this 2019 population standing at 22,231. At the same time the
percentage of residents of all Other Race of Multiple Races, Non-Hispanic has increased. In absolute terms, the
Asian/API, Non-Hispanic population increased the most while the White, Non-Hispanic population decreased the
most. Figure B-4 shows population for the Town of Los Gatos by race for 2000, 2010, and 2019.
7 See, for example, Rothstein, R. (2017). The color of law: a forgotten history of how our government segregated America. New York, NY & London, UK:
Liveright Publishing.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-7
Figure B-4 Los Gatos Population by Race, 2000-2019
Source: U.S. Census Bureau, Census 2000, Table P004; U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table
B03002. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-02.
Notes: Universe: Total population. Data for 2019 represents 2015-2019 ACS estimates. The Census Bureau defines Hispanic/Latinx
ethnicity separate from racial categories. For the purposes of this graph, the “Hispanic or Latinx” racial/ethnic group represents those
who identify as having Hispanic/Latinx ethnicity and may also be members of any racial group. All other racial categories on this graph
represent those who identify with that racial category and do not identify with Hispanic/Latinx ethnicity.
Employment Trends
Balance of Jobs and Workers
A town houses employed residents who either work in the community where they live or work elsewhere in the
region. Conversely, a town may have job sites that employ residents from the same town, but more often employ
workers that commute from outside of it. Smaller towns typically will have more employed residents than jobs and
export workers, while larger towns tend to have a surplus of jobs and import workers. To some extent the
regional transportation system (bus system, for example) is set up for this flow of workers to the region’s core job
centers. At the same time, as the housing affordability crisis has illustrated, local imbalances may be severe,
where local jobs and worker populations are out of sync at a sub-regional scale. One measure of this is the
relationship between workers and jobs. A town with a surplus of workers “exports” workers to other parts of the
region, while a town with a surplus of jobs must conversely “import” them. Between 2002 and 2018, the number
of jobs in the Town of Los Gatos increased by 23.8 percent. Figure 3-5 shows jobs in the Town of Los Gatos
between 2002 and 2018.
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B-8 Appendix B October 2022
Figure B-5 Los Gatos Jobs in a Jurisdiction
Source: U.S. Census Bureau, Longitudinal Employer-Household Dynamics, Workplace Area Characteristics (WAC) files, 2002-2018. Data
from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-11.
Notes: Universe: Jobs from unemployment insurance-covered employment (private, state and local government) plus United States Office
of Personnel Management-sourced Federal employment. The data is tabulated by place of work, regardless of where a worker lives. The
source data is provided at the census block level. These are cross walked to jurisdictions and summarized.
The figure below shows the balance when comparing jobs to workers, broken down by different wage groups,
offering additional insight into local dynamics. A community may offer employment for relatively low-income
workers, but have relatively few housing options for those workers . Conversely, it may house residents who are
low-wage workers, but offer few employment opportunities for them. Such relationships may cast extra light on
potentially pent-up demand for housing in particular price categories. A relative surplus of jobs relative to
residents in a given wage category suggests the need to import those workers, while conversely, surpluses of
workers mean the community will export those workers to other jurisdictions. Such flows are not inherently bad,
though over time, sub-regional imbalances may appear. The Town has more jobs than residents in wage
categories below $75,000 per year. At the high end of the wage spectrum (i.e., wages over $75,000 per year),
the Town has more high-wage residents than high-wage jobs7F
8. Figure B-6 shows workers by earnings, place of
residence, and place of work within the jurisdiction of the Town of Los Gatos.
8 The source table is top coded at $75,000, precluding more fine-grained analysis at the higher end of the wage spectrum.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-9
Figure B-6 Workers by Earnings, by Los Gatos Jurisdiction as Place of Work and Place of Residence
Source: U.S. Census Bureau, American Community Survey 5-Year Data 2015-2019, B08119, B08519. Data from ABAG/MTC Housing Needs
Data Packet Workbook, Table POPEMP-10.
Notes: Universe: Los Gatos Workers 16 years and over with earnings.
The next diagram shows the ratio of jobs to workers, by wage group. A value of 1.00 means that the Town has
the same number of jobs in a wage group as it has resident workers, in principle, a balance. Values above 1.00
indicate a jurisdiction will need to import workers for jobs in a given wage group. Figure B-7 shows jobs to worker
ratios for the Town Los Gatos.
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B-10 Appendix B October 2022
Figure B-7 Los Gatos Jobs-Worker Ratios, By Wage Group
Source: U.S. Census Bureau, Longitudinal Employer-Household Dynamics, Workplace Area Characteristics (WAC) files (Jobs); Residence
Area Characteristics (RAC) files (Employed Residents), 2010-2018. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table
POPEMP-14.
Notes: Universe: Jobs in a jurisdiction from unemployment insurance-covered employment (private, state and local government) plus
United States Office of Personnel Management-sourced Federal employment. The ratio compares job counts by wage group from two
tabulations of LEHD data: Counts by place of work relative to counts by place of residence. See text for details.
Such balances between jobs and workers may directly influence the housing demand in a community. New jobs
may draw new residents, and when there is high demand for housing relative to supply, many workers may be
unable to afford to live where they work, particularly where job growth has been in relatively lower wage jobs. The
Town is a “net importer of workers” at the low-wage group, while at the high-wage group the Town is “exporting
workers.” This dynamic not only means many workers will need to prepare for long commutes and time spent on
the road, but in the aggregate, it contributes to traffic congestion and time lost for all road users.
If there are more jobs than employed residents, it means a community is relatively jobs-rich, typically also with a
high jobs-per-employed-resident ratio. Therefore, bringing housing into the measure, the jobs per employed
resident ratio in the Town of Los Gatos has increased from 1.32 in 2002, to 1.59 jobs per employed resident in
2018. In short, the Town of Los Gatos is a net importer of workers. Figure B-8 shows the Town of Los Gatos
jobs per household ratio.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-11
Figure B-8 Jobs-Household Ratio
Source: U.S. Census Bureau, Longitudinal Employer-Household Dynamics, Workplace Area Characteristics (WAC) files (Jobs), 2002-2018;
California Department of Finance, E-5 (Households). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-13.
Notes: Universe: Jobs in a jurisdiction from unemployment insurance-covered employment (private, state and local government) plus
United States Office of Personnel Management-sourced Federal employment; households in a jurisdiction. The data is tabulated by place
of work, regardless of where a worker lives. The source data is provided at the census block level. These are cross walked to jurisdictions
and summarized. The ratio compares place of work wage and salary jobs with households, or occupied housing units. A similar measure
is the ratio of jobs to housing units. However, this jobs-household ratio serves to compare the number of jobs in a jurisdiction to the
number of housing units that are actually occupied. The difference between a jurisdiction’s jobs-housing ratio and jobs-household ratio
will be most pronounced in jurisdictions with high vacancy rates, a high rate of units used for seasonal use, or a high rate of units used as
short-term rentals.
Sector Composition
In terms of sectoral composition, the largest industry in which the Town of Los Gatos residents work is Financial
and Professional Services, and the largest sector in which Santa Clara residents work is Health and Educational
Services. For the Bay Area as a whole, the Health and Educational Services industry employs the most workers.
Figure B-9 shows resident employment by industry.
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B-12 Appendix B October 2022
Figure B-9 Resident Employment by Industry
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table C24030. Data from ABAG/MTC Housing Needs
Data Packet Workbook, Table POPEMP-06.
Notes: Universe: Civilian employed population age 16 years and over. The data displayed shows the industries in which jurisdiction
residents work, regardless of the location where those residents are employed (whether within the jurisdiction or not). Categories are
derived from the following source tables: Agriculture & Natural Resources: C24030_003E, C24030_030E; Construction: C24030_006E,
C24030_033E; Manufacturing, Wholesale & Transportation: C24030_007E, C24030_034E, C24030_008E, C24030_035E, C24030_010E,
C24030_037E; Retail: C24030_009E, C24030_036E; Information: C24030_013E, C24030_040E; Financial & Professional Services:
C24030_014E, C24030_041E, C24030_017E, C24030_044E; Health & Educational Services: C24030_021E, C24030_024E, C24030_048E,
C24030_051E; Other: C24030_027E, C24030_054E, C24030_028E, C24030_055E.
Unemployment
In the Town of Los Gatos, there was a 2.9 percentage point decrease in the unemployment rate between January
2010 and January 2021. Jurisdictions throughout the region experienced a sharp rise in unemployment in 2020
due to impacts related to the COVID-19 pandemic, though with a general improvement and recovery in the later
months of 2020. Figure B-10 shows the unemployment rates over the last decade for the Town of Los Gatos,
Santa Clara County, and the Bay Area as a whole.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-13
Figure B-10 Los Gatos Unemployment Rate
Source: California Employment Development Department, Local Area Unemployment Statistics (LAUS), Sub-county areas monthly updates,
2010-2021. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-15.
Notes: Universe: Civilian noninstitutional population ages 16 and older. Unemployment rates for the jurisdiction level is derived from
larger-geography estimates. This method assumes that the rates of change in employment and unemployment are exactly the same in
each sub-county area as at the county level. If this assumption is not true for a specific sub-county area, then the estimates for that area
may not be representative of the current economic conditions. Since this assumption is untested, caution should be employed when using
these data. Only not seasonally-adjusted labor force (unemployment rates) data are developed for cities and CDPs.
Extremely Low-Income Households
Despite the economic and job growth experienced throughout the region since 1990, the income gap has
continued to widen. California is one of the most economically unequal states in the nation, and the Bay Area has
the highest income inequality between high- and low-income households in the state8F
9.
In the Town of Los Gatos, 65 percent of households make more than 100 percent of the Area Median Income
(AMI)9F
10, compared to 8.6 percent making less than 30 percent of AMI, which is considered extremely low-income.
Regionally, more than half of all households make more than 100 percent AMI, while 15 percent make less than
30 percent AMI. In Santa Clara County, 30 percent AMI is the equivalent to the annual income of $39,900 for a
family of four. Many households with multiple wage earners, including food service workers, full-time students,
teachers, farmworkers, and healthcare professionals, can fall into lower AMI categories due to relatively stagnant
wages in many industries. Figure B-11 shows households by income level.
9 Bohn, S.et al. 2020. Income Inequality and Economic Opportunity in California. Public Policy Institute of California.
10 Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine
county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa
Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County),
S1anta Rosa Metro
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B-14 Appendix B October 2022
Figure B-11 Households by Household Income Level
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation,
2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table ELI-01.
Notes: Universe: Occupied housing units. Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates
the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area
(Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and
San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and
Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is
located. The data that is reported for the Bay Area is not based on a regional AMI but instead refers to the regional total of households in
an income group relative to the AMI for the county where that household is located. Local jurisdictions are required to provide an
estimate for their projected extremely low-income households (0-30 percent AMI) in their Housing Elements. HCD’s official Housing
Element guidance notes that jurisdictions can use their RHNA for very low-income households (those making 0-50 percent AMI) to
calculate their projected extremely low-income households. As Bay Area jurisdictions have not yet received their final RHNA numbers, this
document does not contain the required data point of projected extremely low -income households. The report portion of the housing data
needs packet contains more specific guidance for how local staff can calculate an estimate for projected extremely low-income households
once jurisdictions receive their 6th cycle RHNA numbers. AMI levels in this chart are based on the HUD metro area where this jurisdiction
is located. Households making between 80 and 120 percent of the AMI are moderate-income, those making 50 to 80 percent are low
income, those making 30 to 50 percent are very low-income, and those making less than 30 percent are extremely low-income. This is
then adjusted for household size.
Throughout the region, there are disparities between the incomes of homeowners and renters. Typically, the
number of low-income renters greatly outpaces the amount of housing available that is affordable for these
households. In the Town of Los Gatos, the largest proportion of renters falls in the Greater than 100 percent of
AMI group, while the largest proportion of homeowners are found in the Greater than 100 percent of AMI group.
Figure B-12 shows household income by tenure.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-15
Figure B-12 Los Gatos Household Income Level by Tenure
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation,
2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-21.
Notes: Universe: Occupied housing units. Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates
the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area
(Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and
San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and
Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is
located.
Currently, people of color are more likely to experience poverty and financial instability as a result of Federal,
State, and local housing policies that have historically excluded them from the same opportunities extended to
White residents10F
11. These economic disparities also leave communities of color at higher risk for housing
insecurity, displacement, or homelessness.
In the Town of Los Gatos, Hispanic or Latinx and Other Race or Multiple Races (Hispanic and Non-Hispanic)
residents experience the highest rates of poverty, followed by White (Hispanic and Non-Hispanic) residents.
Figure B-13 shows poverty status by race.
11 Moore, E., Montojo, N. and Mauri, N., 2019. Roots, Race & Place: A History of Racially Exclusionary Housing the San Francisco Bay Area. Hass Institute.
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B-16 Appendix B October 2022
Figure B-13 Los Gatos Poverty Status by Race
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B17001(A-I). Data from ABAG/MTC Housing
Needs Data Packet Workbook, Table ELI-03.
Notes: Universe: Population for whom poverty status is determined. The Census Bureau uses a federally defined poverty threshold that
remains constant throughout the country and does not correspond to Area Median Income. For this table, the Census Bureau does not
disaggregate racial groups by Hispanic/Latinx ethnicity. However, data for the white racial group is also reported for white householders
who are not Hispanic/Latinx. Since residents who identify as white and Hispanic/Latinx may have very different experiences within the
housing market and the economy from those who identify as white and non-Hispanic/Latinx, data for multiple white sub-groups are
reported here. The racial/ethnic groups reported in this table are not all mutually exclusive. Therefore, the data should not be summed as
the sum exceeds the population for whom poverty status is determined for this jurisdiction. However, all groups labelled “Hispanic and
Non-Hispanic” are mutually exclusive, and the sum of the data for these groups is equivalent to the population for whom poverty status is
determined.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-17
Tenure
The number of residents who own their homes compared to those who rent their homes can help identify the level
of housing insecurity (i.e., ability for individuals to stay in their homes ) in a town or city and region. Generally,
renters may be displaced more quickly if prices increase.
In the Town of Los Gatos as of 2019, there are a total of 12,083 housing units, and fewer residents rent than own
their homes: 35.1 percent versus 64.9 percent. By comparison, 43.6 percent of households in Santa Clara
County are renters, while 43.9 percent of Bay Area households rent their homes. Figure B-14 shows housing
tenure for Los Gatos, Santa Clara County, and the Bay Area as a whole.
Figure B-14 Housing Tenure
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25003. Data from ABAG/MTC Housing Needs
Data Packet Workbook, Table POPEMP-16.
Notes: Universe: Occupied housing units.
Homeownership rates often vary considerably across race and ethnicity in the Bay Area and throughout the
country. These disparities not only reflect differences in income and wealth , but also stem from Federal, State,
and local policies that limited access to homeownership for communities of color while facilitating homebuying for
White residents. While many of these policies, such as redlining, have been formally disbanded, the impacts of
race-based policy are still evident across Bay Area communities.11F
12
In Los Gatos, 84 percent of Black households owned their homes, while homeownership rates were 72 percent
for Asian households, 39 percent for Latinx households, and 65 percent for White households. Notably, recent
changes to State law require local jurisdictions to examine these dynamics and other fair housing issues when
updating their Housing Elements. Figure B-15 shows housing tenure by the race of the householder.
12 See, for example, Rothstein, R. (2017). The color of law: a forgotten history of how our government segregated America. New York, NY & London, UK:
Liveright Publishing.
HCD Draft Initial Review 2023-2031 Housing Element
B-18 Appendix B October 2022
Figure B-15 Los Gatos Housing Tenure by Race of Householder
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25003(A-I). Data from ABAG/MTC Housing
Needs Data Packet Workbook, Table POPEMP-20.
Notes: Universe: Occupied housing units. For this table, the Census Bureau does not disaggregate racial groups by Hispanic/Latinx
ethnicity. However, data for the white racial group is also reported for white householders who are not Hispanic/Latinx. Since residents
who identify as white and Hispanic/Latinx may have very different experiences within the housing market and the economy from those
who identify as white and non-Hispanic/Latinx, data for multiple white sub-groups are reported here. The racial/ethnic groups reported in
this table are not all mutually exclusive. Therefore, the data should not be summed as the sum exceeds the total number of occupied
housing units for this jurisdiction. However, all groups labelled “Hispanic and Non-Hispanic” are mutually exclusive, and the sum of the
data for these groups is equivalent to the total number of occupied housing units.
The age of residents who rent or own their home can also signal the housing challenges a community is
experiencing. Younger households tend to rent and may struggle to buy a first home in the Bay Area due to high
housing costs. At the same time, senior homeowners seeking to downsize may have limited options in an
expensive housing market.
In the Town of Los Gatos, 77.2 percent of householders between the ages of 25 and 34 are renters, and 36.4
percent of householders over 85 are renters. Figure B-16 shows housing tenure by age.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-19
Figure B-16 Los Gatos Housing Tenure by Age
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25007. Data from ABAG/MTC Housing Needs
Data Packet Workbook, Table POPEMP-18.
Notes: Universe: Occupied housing units.
In many communities, homeownership rates for households in single-family homes are substantially higher than
the rates for households in multi-family housing. In the Town of Los Gatos, 86.2 percent of households in
detached single-family homes are homeowners, while 13.2 percent of households in multi-family housing are
homeowners. Figure B-17 shows housing tenure by housing type.
HCD Draft Initial Review 2023-2031 Housing Element
B-20 Appendix B October 2022
Figure B-17 Los Gatos Housing Tenure by Housing Type
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25032. Data from ABAG/MTC Housing Needs
Data Packet Workbook, Table POPEMP-22.
Notes: Universe: Occupied housing units.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-21
Displacement
Because of increasing housing prices, displacement is a major concern in the Bay Area. Displacement has the
most severe impacts on low- and moderate-income residents. When individuals or families are forced to leave
their homes and communities, they also lose their support network.
The University of California UC, Berkeley, has mapped all neighborhoods in the Bay Area, identifying their risk for
gentrification. They find that in the Town of Los Gatos, there are no households that live in neighborhoods that
are susceptible to or experiencing displacement and none live in neighborhoods at risk of or undergoing
gentrification. Equally important, some neighborhoods in the Bay Area do not have housing appropriate for a
broad section of the workforce. The University of California, Berkeley, estimates that all households in the Town
of Los Gatos live in neighborhoods where low-income households are likely to be excluded due to prohibitive
housing costs12F
13. Figure B-18 shows household displacement risk and tenure.
Figure B-18 Los Gatos Households by Displacement Risk and Tenure
Source: Urban Displacement Project for classification, American Community Survey 5-Year Data (2015-2019), Table B25003 for tenure.
Data from ABAG/MTC Housing Needs Data Packet Workbook, Table POPEMP-25.
Notes: Universe: Households. Displacement data is available at the census tract level. Staff aggregated tracts up to jurisdiction level using
census 2010 population weights, assigning a tract to jurisdiction in proportion to block level population weights. Total household count
may differ slightly from counts in other tables sourced from jurisdiction level sources. Categories are combined as follows for simplicity:
At risk of or Experiencing Exclusion: At Risk of Becoming Exclusive; Becoming Exclusive; Stable/Advanced Exclusive At risk of or
Experiencing Gentrification: At Risk of Gentrification; Early/Ongoing Gentrification; Advanced Gentrification Stable Moderate/Mixed
Income: Stable Moderate/Mixed Income Susceptible to or Experiencing Displacement: Low-Income/Susceptible to Displacement; Ongoing
Displacement Other: High Student Population; Unavailable or Unreliable Data.
13 More information about this gentrification and displacement data is available at the Urban Displacement Project’s webpage:
https://www.urbandisplacement.org/. Specifically, one can learn more about the different gentrification/displacement typologies shown in Figure 18 at
this link: https://www.urbandisplacement.org/sites/default/files/typology_sheet_2018_0.png. Additionally, one can view maps that show which
typologies correspond to which parts of a jurisdiction here: https://www.urbandisplacement.org/san-francisco/sf-bay-area-gentrification-and-
displacement
HCD Draft Initial Review 2023-2031 Housing Element
B-22 Appendix B October 2022
B.3 Housing Stock Characteristics
Housing Types, Year Built, Vacancy, and Permits
In recent years, most housing produced in the region and across the State consisted of single -family homes and
larger multi-unit buildings. However, some households are increasingly interested in “missing middle housing ” or
“Small Multi-Unit Housing, including duplexes, triplexes, townhomes, cottage clusters, and accessory dwelling
units. These housing types may open up more options across incomes and tenure, from young households
seeking homeownership options to seniors looking to downsize and age-in-place.
The housing stock of the Town of Los Gatos in 2020 was made up of 60 percent Single-Family Home: Detached,
13 percent Single-Family Home: Attached, 9 percent Multi-family Housing: Two to Four Units, 18 percent Multi-
family Housing: Five-Plus Units, and 0.5 percent Mobile Homes. In Los Gatos, the housing type that experienced
the most growth between 2010 and 2020 was Single-Family Home: Detached. Figure B-19 shows housing type
trends in Los Gatos for 2010 and 2020.
Figure B-19 Los Gatos Housing Type Trends
SOURCE: California Department of Finance, E-5 series. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-01.
NOTE: Universe: Housing units.
Production has not kept up with housing demand for several decades in the Bay Area, as the total number of units
built and available has not yet come close to meeting the population and job growth experienced throughout the
region. In the Town of Los Gatos, the largest proportion of the housing stock was Built 1960 to 1979, with 6,630
units constructed during this period. Since 2010, 2.6 percent of the current housing stock was built, which is 342
units (U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25034). Figure B-20
shows housing units by the year built.
59.6%
13.0%
9.0%
17.9%
0.5%
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-23
Figure B-20 Los Gatos Housing Units by Year Structure Built
SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25034. Data from ABAG/MTC Housing Needs
Data Packet Workbook, Table HSG-04.
NOTE: Universe: Housing units.
Throughout the Bay Area, vacancies make up 2.6 percent of the total housing units, with homes listed for rent ,
units used for Recreational or Occasional Use, and units not otherwise classified (Other Vacant) making up the
majority of vacancies. The Census Bureau classifies a unit as vacant if no one is occupying it when census
interviewers are conducting the American Community Survey or Decennial Census. Vacant units classified as
For Recreational or Occasional Use are those that are held for short-term periods of use throughout the year.
Accordingly, vacation rentals and short-term rentals like Airbnb are likely to fall in this category. The Census
Bureau classifies units as Other Vacant if they are vacant due to foreclosure, personal/family reasons, legal
proceedings, repairs/renovations, abandonment, preparation for being rented or sold, or vacant for an extended
absence for reasons such as a work assignment, military duty, or incarceration13F
14. In a region with a thriving
economy and housing market like the Bay Area, units being renovated/repaired and prepared for rental or sale
are likely to represent a large portion of the Other Vacant category. Additionally, the need for seismic retrofitting
in older housing stock could also influence the proportion of Other Vacant units in some jurisdictions14F
15.
Vacant units make up 7.5 percent of the overall housing stock in the Town of Los Gatos. The rental vacancy
stands at 8.2 percent, while the ownership vacancy rate is 0.4 percent. Of the vacant units in the Town of Los
Gatos, the most common type of vacancy is Other Vacant, which represents almost half of all vacant rental
units15F
16. Figure B-21 shows vacant units by type.
14 For more information, see pages 3 through 6 of this list of definitions prepared by the Census Bureau:
https://www.census.gov/housing/hvs/definitions.pdf.
15 See Dow, P. (2018). Unpacking the Growth in San Francisco’s Vacant Housing Stock: Client Report for the San Francisco Planning Department. University
of California, Berkeley.
16 The vacancy-rates-by-tenure is for a smaller universe than the total vacancy rate first reported, which in principle includes the full stock (7.5 percent).
The vacancy by tenure counts are rates relative to the rental stock (occupied and vacant) and ownership stock (occupied and vacant) but exclude a
significant number of vacancy categories, including the numerically significant other vacant.
HCD Draft Initial Review 2023-2031 Housing Element
B-24 Appendix B October 2022
Figure B-21 Los Gatos Vacant Units by Type
SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25004. Data from ABAG/MTC Housing Needs
Data Packet Workbook, Table HSG-03.
NOTE: Universe: Vacant housing units.
Between 2015 and 2020, 502 housing units were issued building permits in the Town of Los Gatos. Of those,
approximately percent were for above moderate-income housing, approximately percent were for moderate-
income housing, and approximately 1.0 percent were for low-income, and approximately 17.0 percent were for
very low-income housing. Table B-2 shows residential building permits issued by the Town of Los Gatos by
income group.
Table B-2 Los Gatos, Residential Building Permits by Income Group, 2015 to 2020
Income Group Number Percent
Very Low-Income Permits 49 revise all below
Low-Income Permits 3
Moderate-Income Permits 119
Above Moderate-Income Permits 331
Total 502 100.0%
SOURCE: California Department of Housing and Community Development (HCD), 5th Cycle Annual Progress Report Permit Summary
(2020). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-11.
NOTE: Universe: Housing permits issued between 2015 and 2021. Notes: HCD uses the following definitions for the four income categories:
Very Low Income: units affordable to households making less than 50 percent of the Area Median Income for the county in which the
jurisdiction is located. Low Income: units affordable to households making between 50 percent and 80 percent of the Area Median Income
for the county in which the jurisdiction is located. Moderate Income: units affordable to households making between 80 percent and 120
percent of the Area Median Income for the county in which the jurisdiction is located. Above Moderate Income: units affordable to
households making above 120 percent of the Area Median Income for the county in which the jurisdiction is located.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-25
Assisted Housing Developments At-Risk of Conversion
While there is a need to produce new affordable housing units, ensuring that the existing affordable housing stock
remains affordable is also important. Additionally, it is typically faster and less expensive to preserve currently
affordable units that are at risk of converting to market-rate than it is to build new affordable housing.
The data in the table below comes from the California Housing Partnership’s Preservation Database, the State’s
most comprehensive source of information on subsidized affordable housing at risk of losing its affordable status
and converting to market-rate housing16F
17. According to the data, there are 169 assisted units in the Town of Los
Gatos. Of these units, none were at high risk or very high risk of conversion. Table B-3 summarizes assisted
units at risk in the Town of Los Gatos.
Table B-3 Assisted Units at Potential Risk of Conversion
Income Los Gatos Santa Clara County Bay Area
Low-Income Units 169 28,001 110,177
Moderate-Income Units 0 1,471 3,375
High-Income Units 0 422 1,854
Very High-Income Units 0 270 1,053
Total 169 30,164 116,459
SOURCE: California Housing Partnership, Preservation Database (2020). Data from ABAG/MTC Housing Needs Data Packet Workbook,
Table RISK01.
NOTE: Universe: HUD, Low-Income Housing Tax Credit (LIHTC), USDA, and CalHFA projects. Subsidized or assisted developments that do
not have one of the aforementioned financing sources may not be included. While California Housing Partnership’s Preservation Database
is the state’s most comprehensive source of information on subsidized affordable housing at risk of losing its affordable sta tus and
converting to market-rate housing, this database does not include all deed-restricted affordable units in the state. Consequently, there
may be at-risk assisted units in a jurisdiction that are not captured in this data table. Per HCD guidance, local jurisdictions must also list
the specific affordable housing developments at-risk of converting to market rate uses. This document provides aggregate numbers of at
risk units for each jurisdiction, but local planning staff should contact Danielle Mazzella with the California Housing Partn ership at
dmazzella@chpc.net to obtain a list of affordable properties that fall under this designation. California Housing Partnership uses the
following categories for assisted housing developments in its database: Very-High Risk: affordable homes that are at-risk of converting to
market rate within the next year that do not have a known overlapping subsidy that would extend affordability and are not owned by a
large/stable non-profit, mission-driven developer. High Risk: affordable homes that are at-risk of converting to market rate in the next 1-5
years that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable non -profit,
mission-driven developer. Moderate Risk: affordable homes that are at-risk of converting to market rate in the next 5-10 years that do
not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable non -profit, mission-driven
developer. Low Risk: affordable homes that are at-risk of converting to market rate in 10+ years and/or are owned by a large/stable non-
profit, mission-driven developer.
Substandard Housing
Housing costs in the region are among the highest in the country, which could result in households, particularly
renters, needing to live in substandard conditions in order to afford housing. Generally, there is limited data on
the extent of substandard housing issues in a community. However, the Census Bureau data included in the
graph below gives a sense of some of the substandard conditions that may be present in Los Gato s. For
example, 4.1 percent of renters in Los Gatos reported lacking a kitchen and 1.4 percent of renters lack plumbing,
compared to 0.4 percent of owners who lack a kitchen and 0.6 percent of owners who lack plumbing. Figure B-22
shows substandard housing issues in Los Gatos.
17 This database does not include all deed-restricted affordable units in the state, so there may be at-risk assisted units in a jurisdiction that are not
captured in this data table.
HCD Draft Initial Review 2023-2031 Housing Element
B-26 Appendix B October 2022
Figure B-22 Los Gatos Substandard Housing Issues
SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25053, Table B25043, Table B25049 Data
from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-06.
NOTES: Universe: Occupied housing units. Per HCD guidance, this data should be supplemented by local estimates of units needing to be
rehabilitated or replaced based on recent windshield surveys, local building department data, knowledgeable builders/developers in the
community, or nonprofit housing developers or organizations.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-27
Home and Rent Values
Home prices reflect a complex mix of supply and demand factors, including an area’s demographic profile, labor
market, prevailing wages, and job outlook, coupled with land and construction costs. In the Bay Area, the costs of
housing have long been among the highest in the nation.
The typical home value in Los Gatos was estimated at $2,109,040 in December of 2020, per data from Zillow.
The largest proportion of homes were valued in excess of $2 million. By comparison, the typical home value is
$1,290,970 in Santa Clara County and $1,077,230 in the Bay Area, with the largest share of units valued $1
million to $1.5 million (county) and $500 thousand to $750 thousand (region). Figure B-23 shows home values of
owner-occupied housing units in Los Gatos.
Figure B-23 Home Values of Owner-Occupied Units
SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25075. Data from ABAG/MTC Housing Needs
Data Packet Workbook, Table HSG-07.
NOTE: Universe: Owner-occupied units.
The region’s home values have increased steadily since 2000, besides a decrease during the Great Recession.
The rise in home prices has been especially steep since 2012, with the median home value in the Bay Area
nearly doubling during this time. Since 2001, the typical home value has increased 164.0 percent in Los Gatos
from $798,770 to $2,109,040. This change is considerably greater than the change in Santa Clara County and for
the region as a whole. Figure B-24 shows Zillow home value index for Los Gatos.
HCD Draft Initial Review 2023-2031 Housing Element
B-28 Appendix B October 2022
Figure B-24 Zillow Home Value Index (ZHVI)
SOURCE: Zillow, Zillow Home Value Index (ZHVI). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-08.
NOTES: Universe: Owner-occupied housing units. Zillow describes the ZHVI as a smoothed, seasonally adjusted measure of the typical
home value and market changes across a given region and housing type. The ZHVI reflects the typical value for homes in the 35th to 65th
percentile range. The ZHVI includes all owner-occupied housing units, including both single-family homes and condominiums. More
information on the ZHVI is available from Zillow. The regional estimate is a household-weighted average of county-level ZHVI files, where
household counts are yearly estimates from DOF’s E-5 series For unincorporated areas, the value is a population weighted average of
unincorporated communities in the county matched to census-designated population counts.
Similar to home values, rents have also increased dramatically across the Bay Area in recent years. Many
renters have been priced out, evicted, or displaced, particularly communities of color. Residents finding
themselves in one of these situations may have had to choose between commuting long distances to their jobs
and schools or moving out of the region, and sometimes, out of the State.
In Los Gatos, the largest proportion of rental units rented in the ‘rent $2,000-$2,500 category’, totaling 24.2
percent, followed by 23.7 percent of units renting in the ‘rent $3,000 or More category.’ Looking beyond the
Town, the largest share of units in Santa Clara County is in the ‘rent $2,000-$2,500 category’, compared to the
‘rent $1,500-$2,000 category’ for the Bay Area as a whole. Figure B-25 shows contract rents for renter-occupied
units in Los Gatos, Santa Clara County, and the Bay Area as a whole.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-29
Figure B-25 Contract Rents for Renter-Occupied Units
SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25056. Data from ABAG/MTC Housing
Needs Data Packet Workbook, Table HSG-09.
NOTE: Universe: Renter-occupied housing units paying cash rent.
Since 2009, the median rent has increased by 33.5 percent in the Town of Los Gatos, from $1,700 to $2,270 per
month. In Santa Clara County, the median rent has increased 39.6 percent, from $1,540 to $2,150. The median
rent in the region has increased significantly during this time from $1,200 to $1,850, a 54.2 percent increase 17F
18.
Figure B-25 shows median contract rent in the Town of Los Gatos, Santa Clara County, and the Bay Area as a
whole.
18 While the data on home values shown in Figure B-24 comes from Zillow, Zillow does not have data on rent prices available for most Bay Area
jurisdictions. To have a more comprehensive dataset on rental data for the region, the rent data in this document comes from the U.S. Census Bureau’s
American Community Survey, which may not fully reflect current rents. Local jurisdiction staff may want to supplement the data on rents with local realtor
data or other sources for rent data that are more current than Census Bureau data.
HCD Draft Initial Review 2023-2031 Housing Element
B-30 Appendix B October 2022
Figure B-26 Median Contract Rent
SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data releases, starting with 2005-2009 through 2015-2019, B25058,
B25056 (for unincorporated areas). County and regional counts are w eighted averages of jurisdiction median using B25003 rental unit
counts from the relevant year. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HSG-10.
NOTES: Universe: Renter-occupied housing units paying cash rent. For unincorporated areas, median is calculated using distribution in
B25056.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-31
Overpayment and Overcrowding
A household is considered “cost-burdened” if it spends more than 30 percent of its monthly income on housing
costs, while those who spend more than 50 percent of their income on housing costs are considered “severely
cost-burdened.” Low-income residents are the most impacted by high housing costs and experience the highest
rates of cost burden. Spending such large portions of their income on housing puts low-income households at
higher risk of displacement, eviction, or homelessness. While the housing market has resulted in home prices
increasing dramatically, homeowners often have mortgages with fixed rates, whereas renters are more likely to be
impacted by market increases.
When looking at the cost burden across tenure in the Town of Los Gatos, 20 percent of renters spend 30 percent
to 50 percent of their income on housing compared to 16 percent of those that own. Additionally, 22 percent of
renters are severely cost-burdened (i.e., spend 50 percent or more of their income on housing), while 12 percent
of owners are severely cost-burdened. Figure B-27 shows cost burden by tenure.
Figure B-27 Cost Burden by Tenure, Los Gatos
SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25070, B25091. Data from ABAG/MTC
Housing Needs Data Packet Workbook, Table OVER-06.
NOTES: Universe: Occupied housing units. Cost burden is the ratio of housing costs to household income. For renters, housing cost is
gross rent (contract rent plus utilities). For owners, housing cost is “select monthly owner costs”, which includes mortgage payment,
utilities, association fees, insurance, and real estate taxes. HUD defines cost-burdened households as those whose monthly housing costs
exceed 30 percent of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50
percent of monthly income.
When one looks at both renters and owners together in the Town of Los Gatos, 15.6 percent of households spend
50 percent or more of their income on housing, while 17 percent spend 30 percent to 50 percent. However, these
rates vary greatly across income categories. For example, 78.3 percent of Los Gatos households making less
than 30 percent of AMI spend the majority of their income on housing. For Los Gatos residents making more than
100 percent of AMI, just 3.7 percent are severely cost-burdened, and 83.9 percent of those making more than 100
percent of AMI spend less than 30 percent of their income on housing. Figure B-28 shows cost burden by income
level.
HCD Draft Initial Review 2023-2031 Housing Element
B-32 Appendix B October 2022
Figure B-28 Cost Burden by Income Level, Los Gatos
SOURCE: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS
tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table OVER-05.
NOTES: Universe: Occupied housing units. Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross
rent (contract rent plus utilities). For owners, housing cost is “select monthly owner costs”, which includes mortgage payment, utilities,
association fees, insurance, and real estate taxes. HUD defines cost-burdened households as those whose monthly housing costs exceed
30 percent of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50 percent of
monthly income. Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for differen t
metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland
Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Countie s),
San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo -Fairfield Metro
Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located.
Currently, people of color18F
19 are more likely to experience poverty and financial instability as a result of Federal,
State, and local housing policies that have historically excluded them from the same opportunities extended to
white residents. As a result, they often pay a greater percentage of their income on housing, and in turn, are at a
greater risk of housing insecurity.
Hispanic or Latinx residents are the most severely cost burdened with 22 percent spending more than 50 percent
of their income on housing. Figure B-29 shows cost burden by race.
19 As before, this category as it is used here includes all non-White persons.
3.7%
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-33
Figure B-29 Cost Burden by Race, Los Gatos
SOURCE: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS
tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table OVER-08.
NOTES: Universe: Occupied housing units. Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross
rent (contract rent plus utilities). For owners, housing cost is “select monthly owner costs”, which includes mortgage payment, utilities,
association fees, insurance, and real estate taxes. HUD defines cost-burdened households as those whose monthly housing costs exceed
30 percent of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50 percent of
monthly income. For the purposes of this graph, the “Hispanic or Latinx” racial/ethnic group represents those who identify as having
Hispanic/Latinx ethnicity and may also be members of any racial group. All other racial categories on this graph represent those who
identify with that racial category and do not identify with Hispanic/Latinx ethnicity.
Large family households often have special housing needs due to a lack of adequately sized affordable housing
available. The higher costs required for homes with multiple bedrooms can result in larger families experiencing a
disproportionate cost burden than the rest of the population and can increase the risk of housing insecurity.
In the Town of Los Gatos, 12.2 percent of large family households experience a cost burden of 30 to 50 percent,
while 9.6 percent of households spend more than half of their income on housing. Some 17.8 percen t of all other
households have a cost burden of 30 percent to 50 percent, with 16.8 percent of households spending more than
50 percent of their income on housing. Figure B-30 shows cost burden by household size.
HCD Draft Initial Review 2023-2031 Housing Element
B-34 Appendix B October 2022
Figure B-30 Cost Burden by Household Size, Los Gatos
SOURCE: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS
tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table OVER-09.
NOTES: Universe: Occupied housing units. Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross
rent (contract rent plus utilities). For owners, housing cost is “select monthly owner costs”, which includes mortgage payment, utilities,
association fees, insurance, and real estate taxes. HUD defines cost-burdened households as those whose monthly housing costs exceed
30 percent of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50 percent of
monthly income.
When cost-burdened seniors are no longer able to make house payments or pay rents, displacement from their
homes can occur, putting further stress on the local rental market or forcing residents out of the community they
call home. Understanding how seniors might be cost-burdened is of particular importance due to their special
housing needs, particularly for low-income seniors.
In the Town of Los Gatos, 74 percent of seniors making less than 30 percent of AMI are spending the majority of
their income on housing. For seniors making more than 100 percent of AMI, only 4.3 percent are spending the
majority of their income on housing. Figure B-31 shows cost-burdened senior households by income level.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-35
Figure B-31 Cost-Burdened Senior Households by Income Level, Los Gatos
SOURCE: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS
tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table SEN-03.
NOTES: Universe: Senior households. For the purposes of this graph, senior households are those with a householder who is age d 62 or
older. Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities).
For owners, housing cost is “select monthly owner costs”, which includes mortgage payment, utilities, associatio n fees, insurance, and real
estate taxes. HUD defines cost-burdened households as those whose monthly housing costs exceed 30 percent of monthly income, while
severely cost-burdened households are those whose monthly housing costs exceed 50 percent of monthly income. Income groups are
based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county
Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra
Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area
(Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo -Fairfield Metro Area (Solano County). The AMI levels in this
chart are based on the HUD metro area where this jurisdiction is located.
Overcrowding occurs when the number of people living in a household is greater than the home was designed to
hold19F
20. The Census Bureau considers units with more than 1.5 occupants per room to be severely overcrowded.
Overcrowding is often related to the cost of housing and can occur when demand in a town, city, or region is high.
In many towns and cities, overcrowding is seen more amongst those that are renting, with multiple households
sharing a unit to make it possible to stay in their communities. In the Town of Los Gatos, 4.3 percent of
households that rent are severely overcrowded (i.e., more than 1.5 occupants per room), compared to 0.3 percent
of households that own. Figure B-32 shows overcrowding by tenure and severity.
20 There are several different standards for defining overcrowding, but this report uses the Census Bureau definition, which is more than one occupant per
room (not including bathrooms or kitchens).
HCD Draft Initial Review 2023-2031 Housing Element
B-36 Appendix B October 2022
Figure B-32 Los Gatos Overcrowding by Tenure and Severity
SOURCE: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS
tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table OVER-01.
NOTES: Universe: Occupied housing units. The Census Bureau defines an overcrowded unit as one occupied by 1.01 persons or more per
room (excluding bathrooms and kitchens), and units with more than 1.5 persons per room are considered severely overcrowded.
Overcrowding often disproportionately impacts low-income households. In Los Gatos, less than one percent of
very low-income households (i.e., below 50 percent AMI) experience severe overcrowding. The income group
most experiencing severe overcrowding is the 81%-100% of AMI group. Figure B-33 shows overcrowding by
income level and severity.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-37
Figure B-33 Los Gatos Overcrowding by Income Level and Severity
SOURCE: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS
tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table OVER-04.
NOTES: Universe: Occupied housing units. The Census Bureau defines an overcrowded unit as one occupied by 1.01 persons or more per
room (excluding bathrooms and kitchens), and units with more than 1.5 persons per room are considered severely overcrowded. I ncome
groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the
nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland -Fremont Metro Area (Alameda
and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo C ounties), San Jose-Sunnyvale-Santa Clara
Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo -Fairfield Metro Area (Solano County). The AMI
levels in this chart are based on the HUD metro area where this jurisdiction is located.
Communities of color are more likely to experience overcrowding similar to how they are more likely to experience
poverty, financial instability, and housing insecurity. People of color tend to experience overcrowding at higher
rates than White residents. In Los Gatos, the racial group with the largest overcrowding rate is Hispanic or Latinx.
Figure B-34 shows overcrowding by race.
HCD Draft Initial Review 2023-2031 Housing Element
B-38 Appendix B October 2022
Figure B-34 Overcrowding by Race, Los Gatos
SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25014. Data from ABAG/MTC Housing
Needs Data Packet Workbook, Table OVER-03.
NOTES: Universe: Occupied housing units. The Census Bureau defines an overcrowded unit as one occupied by 1.01 persons or more per
room (excluding bathrooms and kitchens), and units with more than 1.5 persons per room are considered severely overcrowded. F or this
table, the Census Bureau does not disaggregate racial groups by Hispanic/Latinx ethnicity. However, data for the white racial group is
also reported for white householders who are not Hispanic/Latinx. Since residents who identify as white and Hispanic/Latinx may ha ve
very different experiences within the housing market and the economy from those who identify as white and non-Hispanic/Latinx, data for
multiple white sub-groups are reported here. The racial/ethnic groups reported in this table are not all mutually exclusive. Therefore, the
data should not be summed as the sum exceeds the total number of occupied housing units for this jurisdiction. However, all groups
labelled “Hispanic and Non-Hispanic” are mutually exclusive, and the sum of the data for these groups is equivalent to the total number of
occupied housing units.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-39
B.4 Special Housing Needs
Large Households
Large households often have different housing needs than smaller households. If the Town’s rental housing stock
does not include larger apartments, large households who rent could end up living in overcrowded conditions.
In Los Gatos, for large households with five or more persons, most units were owner occupied. Figure B-35
shows household size by tenure.
Figure B-35 Household Size by Tenure, Los Gatos
SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25009. Data from ABAG/MTC Housing Needs
Data Packet Workbook, Table LGFEM-01.
NOTE: Universe: Occupied housing units.
The unit sizes available in a community affect the household sizes that can access that community. Large
families are generally served by housing units with three or more bedrooms, of which there are 7,760 units in the
Town of Los Gatos. Among these large units, most are owner occupied. Figure B-36 summarizes housing units
by the number of bedrooms.
HCD Draft Initial Review 2023-2031 Housing Element
B-40 Appendix B October 2022
Figure B-36 Housing Units by Number of Bedrooms, Los Gatos
SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25042. Data from ABAG/MTC Housing Needs
Data Packet Workbook, Table HSG-05.
NOTE: Universe: Housing units.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-41
Female-Headed Households
Households headed by one person are often at greater risk of housing insecurity, particularly female -headed
households, who may be supporting children or a family with only one income.
In the Town of Los Gatos, the largest proportion of households is Married-Couple Family Households at 58.1
percent of the total, while Female-Headed Family Households make up 8 percent of all households. Figure B-37
provides information on household type in Los Gatos.
Figure B-37 Household Type
SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B11001. Data from ABAG/MTC Housing Needs
Data Packet Workbook, Table POPEMP-23.
NOTES: Universe: Households. For data from the Census Bureau, a “family household” is a h ousehold where two or more people are
related by birth, marriage, or adoption. “Non-family households” are households of one person living alone, as well as households where
none of the people are related to each other.
Female-headed households with children may face particular housing challenges, with pervasive gender
inequality resulting in lower wages for women. Moreover, the added need for childcare can make finding a home
that is affordable more challenging.
In Los Gatos, 36 female-headed households with children (eight percent) fell in the Below Poverty Level category,
while 26 female-headed households without children (five percent) fell in the Below Poverty Level category.
Figure B-38 shows female-headed households by poverty status.
HCD Draft Initial Review 2023-2031 Housing Element
B-42 Appendix B October 2022
Figure B-38 Female-Headed Households by Poverty Status, Los Gatos
SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B17012. Data from ABAG/MTC Housing Needs
Data Packet Workbook, Table LGFEM-05.
NOTES: Universe: Female Households. The Census Bureau uses a federally defined poverty threshold that remains constant throughout th e
country and does not correspond to Area Median Income.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-43
Seniors
Senior households often experience a combination of factors that can make accessing or keeping affordable
housing a challenge. They often live on fixed incomes and are more likely to have disabilities, chronic health
conditions, and/or reduced mobility. Seniors who rent may be at even greater risk for housing challenges than
those who own, due to income differences between these groups.
In the Town of Los Gatos, the largest proportion of senior households who rent fell into one of the categories
below the Greater than 100% AMI category, while the largest proportion of senior households who are
homeowners fell in the Greater than 100% AMI category. Figure B-39 shows senior households by income and
tenure.
Figure B-39 Senior Households by Income and Tenure, Los Gatos
SOURCE: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS
tabulation, 2012-2017 release. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table SEN-01.
NOTES: Universe: Senior households. For the purposes of this graph, senior households are those with a householder who is aged 62 or
older. Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan
areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland -Fremont Metro
Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose
Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area
(Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located.
People with Disabilities
People with disabilities face additional housing challenges. Encompassing a broad group of individuals living with
a variety of physical, cognitive, and sensory impairments, many people with disabilities live on fixed incomes and
are in need of specialized care, yet often rely on family members for assistance due to the high cost of care.
When it comes to housing, people with disabilities are not only in need of affordable housing , but accessibly
designed housing, which offers greater mobility and opportunity for independence. Unfortunately, the need
typically outweighs what is available, particularly in a housing market with such high demand. People with
disabilities are at a high risk for housing insecurity, homelessness, and institutionalization, particularly when they
lose aging caregivers.
HCD Draft Initial Review 2023-2031 Housing Element
B-44 Appendix B October 2022
Overall, 9 percent of people in Los Gatos have a disability of some kind.20F
21 Figure B-40 shows the rates at which
different disabilities are present among residents of Los Gatos.
Figure B-40 Disability by Type, Los Gatos
SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B18102, Table B18103, Table B18104, Table
B18105, Table B18106, Table B18107. Data from ABAG/MTC Housing Needs Data Packet Workbook, Table DISAB-01.
NOTES: Universe: Civilian noninstitutionalized population 18 years and over. These disabilities are counted separately and are not
mutually exclusive, as an individual may report more than one disability. These counts should not be summed. The Census Bureau
provides the following definitions for these disability types: Hearing difficulty: deaf or has serious difficulty hearing. Vision difficulty: blind
or has serious difficulty seeing even with glasses. Cognitive difficulty: has serious difficulty concentrating, remembering, or making
decisions. Ambulatory difficulty: has serious difficulty walking or climbing stairs. Self-care difficulty: has difficulty dressing or bathing.
Independent living difficulty: has difficulty doing errands alone such as visiting a doctor’s office or shopping.
State law also requires a Housing Element to examine the housing needs of people with developmental
disabilities. Developmental disabilities are defined as severe, chron ic, and attributed to a mental or physical
impairment that begins before a person turns 18 years old. This can include Down’s Syndrome, autism, epilepsy,
cerebral palsy, and mild to severe intellectual disability. Some people with developmental disabilities are unable
to work, rely on supplemental security income, and live with family members. In addition to their specific housing
needs, they are at increased risk of housing insecurity after an aging parent or family member is no longer able to
care for them21F
22.
In the Town of Los Gatos, there are 50 children under the age of 18 with a developmental disability (40.7
percent), while there are 73 adults with a developmental disability (60 percent). Table B-4 below shows the
number of persons in Los Gatos with developmental disabilities by age.
21 These disabilities are counted separately and are not mutually exclusive, as an individual may report more than one disability. These counts should not
be summed.
22 For more information or data on developmental disabilities in your jurisdiction, contact the Golden Gate Regional Center for Marin, San Francisco and
San Mateo Counties; the North Bay Regional Center for Napa, Solano and Sonoma Counties; the Regional Center for the East Bay for Alameda and Contra
Costa Counties; or the San Andreas Regional Center for Santa Clara County.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-45
Table B-4 Los Gatos Population with Developmental Disabilities by Age
Age Group Number
Age Under 18 50
Age 18+ 73
SOURCE: California Department of Developmental Services, Consumer Count by California ZIP Code and Age Group (2020). This table is
included in the Data Packet Workbook as Table DISAB-04.
NOTE: Universe: Population with developmental disabilities. Notes: The California Department of Developmental Services is responsible for
overseeing the coordination and delivery of services to more than 330,000 Californians with developmental disabilities includ ing cerebral
palsy, intellectual disability, Down syndrome, autism, epilepsy, and related conditions. The California Department of Developmental
Services provides ZIP code level counts. To get jurisdiction-level estimates, ZIP code counts were cross walked to jurisdictions using census
block population counts from Census 2010 SF1 to determine the share of a ZIP code to assign to a given jurisdiction.
The most common living arrangement for individuals with disabilities is in Los Gatos is the home of
parent/family/guardian. Table B-5 shows the Los Gatos population with developmental disabilities by residence.
Table B-5 Los Gatos Population with Developmental Disabilities by Residence
Residence Type Number
Home of Parent/Family/Guardian 102
Foster/Family Home 9
Independent/Supported Living 7
Other 4
Community Care Facility 4
Intermediate Care Facility 0
SOURCE: California Department of Developmental Services, Consumer Count by California ZIP Code and Residence Type (2020). This table
is included in the Data Packet Workbook as Table DISAB-05.
NOTE: Universe: Population with developmental disabilities. Notes: The California Department of Developmental Services is responsible for
overseeing the coordination and delivery of services to more than 330,000 Californians with developmental disabilities including cerebral
palsy, intellectual disability, Down syndrome, autism, epilepsy, and related conditions. The California Department of Developmental
Services provides ZIP code level counts. To get jurisdiction-level estimates, ZIP code counts were cross walked to jurisdictions using census
block population counts from Census 2010 SF1 to determine the share of a ZIP code to assign to a given jurisdiction.
Homelessness
Homelessness remains an urgent challenge in ma ny communities across the State, reflecting a range of social,
economic, and psychological factors. Rising housing costs result in increased risks of community members
experiencing homelessness. Many residents have found themselves housing insecure and ended up homeless in
recent years, either temporarily or longer term. Addressing the specific housing needs for the unhoused
population remains a priority throughout the region, particularly since homelessness is disproportionately
experienced by people of color, people with disabilities, those struggling with addiction, and those dealing with
traumatic life circumstances.
In Santa Clara County, the most common type of household experiencing homelessness are those without
children in their care. Among households experiencing homelessness that do not have children, 87 percent are
unsheltered. Of homeless households with children, most are sheltered in an emergency shelter. Figure B-41
shows household type and shelter status in Santa Clara County.
HCD Draft Initial Review 2023-2031 Housing Element
B-46 Appendix B October 2022
Figure B-41 Homelessness by Household Type and Shelter Status, Santa Clara County
SOURCE: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations
Reports (2019). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HOMELS-01.
NOTES: Universe: Population experiencing homelessness. This data is based on Point-in-Time (PIT) information provided to HUD by CoCs in
the application for CoC Homeless Assistance Programs. The PIT Count provides a count of sheltered and unsheltered homeless persons on
a single night during the last ten days in January. Each Bay Area county is its own CoC, and so the data for this table is provided at the
county-level. Per HCD’s requirements, jurisdictions will need to supplement this county-level data with local estimates of people
experiencing homelessness.
People of color are more likely to experience poverty and financial instability as a result of fe deral and local
housing policies that have historically excluded them from the same opportunities extended to
White residents. Consequently, people of color are often disproportionately impacted by homelessness,
particularly Black residents of the Bay Area.
In Santa Clara County, White (Hispanic and Non-Hispanic) residents represent the largest proportion of residents
experiencing homelessness and account for 44 percent of the homeless population, while making up 45 percent
of the overall population. Figure B-42 shows the racial group share of the homeless population.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-47
Figure B-42 Racial Group Share of General and Homeless Populations, Santa Clara County
SOURCE: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations
Reports (2019); U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B01001(A-I). Data from ABAG/MTC
Housing Needs Data Packet Workbook, Table HOMELS-02.
NOTES: Universe: Population experiencing homelessness. This data is based on Point-in-Time (PIT) information provided to HUD by CoCs in
the application for CoC Homeless Assistance Programs. The PIT Count provides a count of sheltered and unsheltered homeless persons on
a single night during the last ten days in January. Each Bay Area county is its own CoC, and so the data for this table is provided at the
county-level. Per HCD’s requirements, jurisdictions will need to supplement this county-level data with local estimates of people
experiencing homelessness. HUD does not disaggregate racial demographic data by Hispanic/Latinx ethnicity for people experien cing
homelessness. Instead, HUD reports data on Hispanic/Latinx ethnicity for people experiencing homelessness in a separate table.
Accordingly, the racial group data listed here includes both Hispanic/Latinx and non-Hispanic/Latinx individuals.
In Santa Clara County, Latinx residents represent 42.7 percent of the population experiencing homelessness,
while Latinx residents comprise 25.8 percent of the general population. Figure B-43 shows the Latinx share of the
homeless population in Santa Clara County.
HCD Draft Initial Review 2023-2031 Housing Element
B-48 Appendix B October 2022
Figure B-43 Latinx Share of General and Homeless Populations, Santa Clara County
SOURCE: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations
Reports (2019); U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B01001(A-I). Data from ABAG/MTC
Housing Needs Data Packet Workbook, Table HOMELS-03.
NOTES: Universe: Population experiencing homelessness. This data is based on Point-in-Time (PIT) information provided to HUD by CoCs
in the application for CoC Homeless Assistance Programs. The PIT Count provides a count of sheltered and unsheltered homeless persons
on a single night during the last ten days in January. Each Bay Area county is its own CoC, and so the data for this table is provided at the
county-level. Per HCD’s requirements, jurisdictions will need to supplement this county-level data with local estimates of people
experiencing homelessness. The data from HUD on Hispanic/Latinx ethnicity for individuals experiencing homelessness does not specify
racial group identity. Accordingly, individuals in either ethnic group identity category (Hispanic/Latinx or non-Hispanic/Latinx) could be of
any racial background.
Many of those experiencing homelessness are dealing with severe issues, including mental illness, substance
abuse, and domestic violence, which are potentially life threatening and require additional assistance.
In Santa Clara County, homeless individuals are commonly challenged by severe mental illness, with 2,659
reporting this condition. Of those, some 87.6 percent are unsheltered, further adding to the challenge of handling
the issue. Figure B-44 shows selected characteristics of the homeless population in Santa Clara County.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-49
Figure B-44 Characteristics for the Population Experiencing Homelessness, Santa Clara County
SOURCE: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations
Reports (2019). Data from ABAG/MTC Housing Needs Data Packet Workbook, Table HOMELS-04.
NOTES: Universe: Population experiencing homelessness. This data is based on Point-in-Time (PIT) information provided to HUD by CoCs in
the application for CoC Homeless Assistance Programs. The PIT Count provides a count of sheltered and unsheltered homeless persons on
a single night during the last ten days in January. Each Bay Area county is its own CoC, and so the data for this table is provided at the
county-level. Per HCD’s requirements, jurisdictions will need to supplement this county-level data with local estimates of people
experiencing homelessness. These challenges/characteristics are counted separately and are not mutually exclusive, as an individual may
report more than one challenge/characteristic. These counts should not be summed.
In the Town of Los Gatos, there were no reported students experiencing homeless in the 2019-20 school year.
By comparison, Santa Clara County has seen a 3.5 percent increase in the population of students experiencing
homelessness since the 2016-17 school year, and the Bay Area population of students experiencing
homelessness decreased by 8.5 percent. During the 2019-2020 school year, there were still some 13,718
students experiencing homelessness throughout the region, adding undue burdens on learning and thriving, with
the potential for longer term negative effects. Table B-6 summarizes students in public schools experiencing
homelessness.
HCD Draft Initial Review 2023-2031 Housing Element
B-50 Appendix B October 2022
Table B-6 Students in Local Public Schools Experiencing Homelessness
Academic Year Los Gatos Santa Clara County Bay Area
2016-17 0 2,219 14,990
2017-18 0 2,189 15,142
2018-19 0 2,405 15,427
2019-20 0 2,297 13,718
SOURCE: California Department of Education, California Longitudinal Pupil Achievement Data System (CALPADS), Cumulative Enrollment
Data (Academic Years 2016-2017, 2017-2018, 2018-2019, 2019-2020). This table is included in the Data Packet Workbook as Table
HOMELS-05.
NOTE: Universe: Total number of unduplicated primary and short-term enrollments within the academic year (July 1 to June 30), public
schools. The California Department of Education considers students to be homeless if they are unsheltered, living in temporary shelters for
people experiencing homelessness, living in hotels/motels, or temporarily doubled up and sharing the housing of other persons due to the
loss of housing or economic hardship. The data used for this table was obtained at the school site level, matched to a file containing
school locations, geocoded and assigned to jurisdiction, and finally summarized by geography.
Farmworkers
Across the State, housing for farmworkers has been recognized as an important and unique concern.
Farmworkers generally receive wages that are considerably lower than other jobs and may have temporary
housing needs. Finding affordable housing can be challenging, particularly in the current housing market.
In the Town of Los Gatos, there were no reported students of migrant workers in the 2019-20 school year. The
trend for the region for the past few years has been a decline of 2 percent in the number of migrant worker
students since the 2016-17 school year. The change at the county level is a 50 percent decrease in the number
of migrant worker students since the 2016-17 school year. Table B-7 summarizes migrant worker student
population in the Town of Los Gatos, Santa Clara County, and the Bay Area as a whole.
Table B-7 Migrant Worker Student Population
Academic Year Los Gatos Santa Clara County Bay Area
2016-17 0 978 4,630
2017-18 0 732 4,607
2018-19 0 645 4,075
2019-20 0 492 3,976
SOURCE: California Department of Education, California Longitudinal Pupil Achievement Data System (CALPADS), Cumulative Enrollment
Data (Academic Years 2016-2017, 2017-2018, 2018-2019, 2019-2020). This table is included in the Data Packet Workbook as Table FARM
01.
NOTES: Universe: Total number of unduplicated primary and short-term enrollments within the academic year (July 1 to June 30), public
schools. The data used for this table was obtained at the school site level, matched to a file containing school locations, geocoded a nd
assigned to jurisdiction, and finally summarized by geography.
According to the U.S. Department of Agriculture Census of Farmworkers, the number of permanent farm workers
in Santa Clara County has increased since 2002, totaling 2,418 in 2017, while the number of seasonal farm
workers has decreased, totaling 1,757 in 2017. Figure B-45 shows farm operation and labor in Santa Clara
County.
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-51
Figure B-45 Farm Operations and Farm Labor by County, Santa Clara County
SOURCE: U.S. Department of Agriculture, Census of Farmworkers (2002, 2007, 2012, 2017), Table 7: Hired Farm Labor. For the data table
behind this figure, please refer to the Data Packet Workbook, Table FARM-02.
NOTES: Universe: Hired farm workers (including direct hires and agricultural service workers who are often hired through labor
contractors). Farm workers are considered seasonal if they work on a farm less than 150 days in a year, while farm workers wh o work on a
farm more than 150 days are considered to be permanent workers for that farm.
HCD Draft Initial Review 2023-2031 Housing Element
B-52 Appendix B October 2022
Non-English Speakers
California has long been an immigration gateway to the United States, which means that many languages are
spoken throughout the Bay Area. Since learning a new language is universally challenging, it is not uncommon
for residents who have immigrated to the United States to have limited English proficiency. This limitation can
lead to additional disparities if there is a disruption in housing, such as an eviction, because residents might not
be aware of their rights or they might be wary to engage due to immigration status concerns.
In the Town of Los Gatos, 1.7 percent of residents five years and older identified as speaking English not well or
not at all, which was below the proportion for Santa Clara County. Throughout the region the proportion of
residents five years and older with limited English proficiency was eight percent. Figure B-46 shows population
with limited English proficiency in the Town of Los Gatos, Santa Clara County, and the Bay Area as a wh ole.
Figure B-46 Population with Limited English Proficiency
SOURCE: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B16005. Data from ABAG/MTC Housing Needs
Data Packet Workbook, Table AFFH-03.
NOTE: Universe: Population 5 years and over.
Santa Clara County has approximately 23 emergency shelters, providing close to 800 beds year -round, with an
additional 300 beds available during the winter months (November through March). There are also over 1,100
transitional housing beds throughout the County that offer a combination of stable housing and intensive, targeted
support services for the mentally ill, those with chronic substance abuse, developmental disabilities, and other
factors that prevent the homeless from returning to permanent housing situations. Transitional housing includes
both single site and "scattered site" programs. Table B-8 below provides a summary of homeless facilities,
emergency shelters and transitional housing near the Town of Los Gatos.
1.7%
Appendix B. Housing Needs Assessment
October 2022 Appendix B B-53
Table B-8 Homeless Facilities Near Los Gatos
Facility Beds Target Population Location
Emergency Shelters
Asian Americans for Community
Involvement 12 Women with Children San Jose
City Team Rescue Mission 52 Single men San Jose
Hospitality House, Salvation Army 24 Single men San Jose
Our House Youth Services HomeFirst 10 Homeless and run-away youth San Jose
San Jose Family Shelter 143 Families San Jose
Support Network for Battered Women 18 Domestic violence shelter- women and
children San Jose
Emergency Shelter/Transitional Housing
InnVision 178 Working men, women & children, mentally
ill men & women San Jose
James Boccardo Reception Center 370 Families and single adults San Jose
Transitional Housing
Next Door- Women with Children 19 Domestic Violence Shelter -Women and
children San Jose
St. Josephs Cathedral 45 Worker housing- men, women and children San Jose
YWCA- Villa Nueva 126 Women and children San Jose
SOURCE: Santa Clara County Consolidated Plan, 2010-2015
Governmental and Non-Governmental Constraints C
APPENDIX
Appendix C. Governmental and Non-Governmental Constraints
October 2022 Appendix C C-1
C.1 G overnmental Constraints
Potential governmental constraints that impact housing development in Los Gatos include land use and zoning
regulations, building code standards and code compliance, Town design and development standards,
governmental fees and exactions, processing and permitting time, and local housing programs.
This appendix provides a full discussion of both governmental and non-governmental constraints that affect
housing in Los Gatos. Governmental constraints are policies, requirements, or other actions imposed by various
levels of government on land and housing ownership and development. Federal and State agency regulations
that may constrain development are beyond the control of the Town and are therefore not addressed in this
document. Non-governmental constraints are other conditions that impact housing development such as market
factors, environmental setting, and construction costs.
Land Use
On June 30, 2022, the Town Council adopted the 2040 General Plan and accompanying Environmental Impact
Report (EIR). As of September 27, 2022, The Land Use and Community Design Elements of the 2040 General
Plan are suspended pending the results of a referendum. In the interim, the Town’s 2020 General Plan Land Use
and Community Design Elements will govern during the suspension period.
Residential Designations
HR, Hillside Residential. The purpose of this designation very low density single-family residential and
accessory dwelling unit development on large lots or as part of a cluster development. This designation
allows for development that is compatible with the unique mountainous terrain and rural nature of the
hillside areas. Up to one dwelling unit per acre and maximum height of 25 feet.
LDR, Low Density Residential. The purpose of this designation is to provide for accessory dwelling units
and single-family residential purposes. It encourages single-family residential development in either the
standard development established by standard zoning or by innovative forms obtained through a planned
development. Densities range from 0 to five dwelling units per acre, a maximum height of 30 feet and up
to 40 percent lot coverage.
MDR, Medium Density Residential. The purpose of this designation is to provide for accessory dwelling
units, multi-family residential, duplexes, and/or small lot single-family homes. Mixed-use developments are
not permitted in this designation. Densities range from five to 12 units per acre, maximum height up to 30
feet or 35 feet when the building has below grade parking and lot coverage up to 40 percent.
HDR, High Density Residential. The purpose of this designation is to provide for accessory dwelling units,
and more dense multi-family residential development. Its objective is to provide quality housing in
proximity to transit and/or commercial and business areas. Mixed-use developments are not permitted in
this designation. Densities range from 12 to 20 units per acre, maximum height up to 30 feet or 35 feet
when the building has below grade parking and lot coverage up to 40 percent.
Commercial Designations
MU, Mixed-Use. The purpose of this designation is to provide a mixture of commercial uses (including
retail, office, hotel/lodging) and residential, along with allowing stand-alone commercial uses (including
retail, office, hotel/lodging, service uses, recreational uses, and restaurants). Residential is only allowed
when developed in a mixed-use format with retail, office, or hotel/lodging components on the site. Projects
developed under this designation shall maintain primary orientation to arterial street frontages and proper
transitions and buffers to adjacent residential properties. Densities range up to 20 units per acre, with a
maximum height up to 35 feet, and lot coverage up to 50 percent.
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C-2 Appendix C October 2022
NC, Neighborhood Commercial. The purpose of this designation is to provide for necessary day-to-day
commercial goods and services required by the residents of the adjacent neighborhoods. This designation
encourages concentrated and coordinated commercial development at easily accessible locations.
Residential uses, developed using a mixed-use format, are allowed in the designation. Densities range up
to 20 units per acre, with a maximum height up to 35 feet, and lot coverage up to 50 percent.
CDB, Central Business District. The purpose of this designation is to encourage a mixture of community-
orientated commercial goods and services within the Downtown CBD. This designation applies exclusively
to the Downtown CBD, with the goal to accommodate and retain local merchants and preserve the Town’s
character. New development in the CBD shall integrate with existing structures of architectural and
historical significance. Residential uses, developed using a mixed-use format, are allowed in the
designation. Densities range up to 20 units per acre, maximum height up to 45 feet and a FAR up to 2.0.
Employment Center Designations
OP, Office Professional. The purpose of this designation is to provide for professional and general
business offices, incubator spaces, and innovation centers. This designation applies to various locations
throughout the Town, often in proximity to neighborhood- or community-oriented commercial facilities, or
as a buffer between commercial and residential uses. The intent of this designation is to satisfy the
community’s need for general business and professional services, and local employment. Residential
uses, developed using a mixed-use format, are allowed in the designation. Densities range up to 20 units
per acre, with a maximum height up to 35 feet and lot coverage up to 50 percent.
Specific Plan Designations
NF-SP, North Forty Specific Plan. The purpose of this designation is to provide land for the North 40
Specific Plan, which includes the designation of mixed-use development (residential and commercial, open
space amenities, and space for a hotel).
Town Code
The Town of Los Gatos Municipal Code provides zoning regulations that are more specific than the General Plan
Land Use designations. This section describes residential development standards, including accessory dwelling
units, overlay zones, and density bonuses. This section also analyzes constraints on housing for persons with
disabilities.
Residential Development Standards
There are seven residential and five commercial zoning districts in Los Gatos that allow residential uses. Table
C-1 provides the regulations for each zone.
Resource Conservation (RC)
Hillside Residential (HR)
Single-Family Residential (R-1)
Single-Family Residential Downtown (R-1 D)
Duplex Residential (RD)
Multi-family Residential (RM)
Neighborhood Commercial (C-1)
Central Business District (C-2)
Highway Commercial (CH)
Office (O)
Appendix C. Governmental and Non-Governmental Constraints
October 2022 Appendix C C-3
Commercial Industrial Zone (LM)
As shown in Table C-1, development standards for each residential district could impede a project’s ability to
develop housing at a density of at least 35 dwelling units per acre on a site. The 30-foot height limit for the
majority of residential designations allows for up to three building stories and the maximum density of 20 dwelling
units per acre in the RM zone limits development.
Table C-1 also provides the parking requirements for residential development in Los Gatos, by zoning district.
Parking is often a significant component of the cost of residential development and can be viewed as a constraint
to the provision of housing. The Town has provided some flexibility in its parking requirements, particularly for
Planned Developments and for some developments providing affordable units for elderly and disabled persons,
generally easing the constraint of parking requirements on the development of higher density and affordable units.
As part of the Housing Element Update, programs to amend the Zoning Code and General Plan to ensure
adequate sites are available to accommodate the identified sites in the Sites Inventory are proposed and include
Amending the Zoning Code to include a Housing Element Overlay Zone (HEOZ) to apply to the sites
included in the Site Inventory to modify the development standards (i.e., density, lot coverage, floor area
ratio, height) on those sites;
Amending the Affordable Housing Overlay Zone to increase the maximum allowable density from 20
dwelling units per acre to 30 dwelling units per acre;
Amending the North Forty Specific Plan to increase the maximum allowable density from 20 dwelling units
per acre to more than 30 dwelling units per acre and increase the total number of dwelling units allowed in
the Specific Plan;
Clarifying the text of the non-residential zones that the housing sites contained in the inventory sites table
that are in these zones must include housing;
Rezoning the Caltrans ROW (Site E3) to allow for residential development; and
Allowing for housing developments that are 100 percent affordable are allowed by-right in Mixed-Use
General Plan designation.
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C-4 Appendix C October 2022
Table C-1 Residential and Commercial Development Standards by Zoning District
Notes: a Single-family, residential condominiums, and two-family dwellings must provide two parking spaces for each living unit and one additional visitor space for each residential unit is required. See
discussion below for information regarding required visitor spaces.
b The Town requires 1.5 parking spaces per unit for multiple-unit dwellings in all zones and two-family dwellings in the R-1D zone. One visitor parking space for each residential unit other than a
detached single-family or two-family dwelling shall be required, unless the Planning Commission makes a finding that more or less visitor parking is necessary due to the size or type of housing unit(s).
c Setbacks vary depending on adjacent uses and streets for commercial designations
Zoning
District Density Minimum Lot
Area
Maximum
Height
(Feet)
Front
Yard
Setback
(Feet)
Side
Yard
Setback
(Feet)
Rear
Yard
Setback
(Feet)
Parking
Per Unit
(No. of
Spaces)
Other
RC 1 unit per lot 20 acres 25 30 20 25 2
HR HR-1: 1-5 acres per unit
HR-2.5: 2.5-10 acres per unit
HR-5: 5-40 acres per unit
HR-20: 20-160 acres per unit
40,000 sq. ft. 25 30 20 25 2 Density ranges are dependent
on hillside slope calculations.
R-1 R-1:8 8,000 sq. ft. 30 25 8 20 2
R-1:10 10,000 sq. ft. 30 25 10 20 2
R-1:12 12,000 sq. ft. 30 25 10 20 2
R-1:15 15,000 sq. ft. 30 25 12 25 2
R-1:20 20,000 sq. ft. 30 30 15 25 2
R-1:30 30,000 sq. ft. 30 30 16 25 2
R-1D 5,000 sq. ft. for
single-family
8,000 sq. ft. for
duplex
30 15 5 20
2 for single-
family and
two-family
dwellings
Architecture & Site is required
for all new primary buildings
R-D 8,000 sq. ft. 30 25 8 20 2
R-M
8,000 sq. ft. 30 25 8-10 20
Resident: 1.5
per unit a
Visitor: 1 per
unit b
Maximum height is 30 feet,
except when the building has
below grade parking the
maximum is 35 feet.
C-1 Up to20 units per acre N/A 35 15 0 0 c Dependent
on unit size Residential allowed with CUP
C-2 Up to 20 units per acre N/A 45 15 c 0 c 0 c Residential allowed with CUP.
CH Up to 20 units per acre N/A 35 25 c 15 c 20 c Residential allowed with CUP
O Up to 20 units per acre 8,000 sq. ft. 35 25 10 20 Residential allowed with CUP
LM Up to 20 units per acre 8,000 sq. ft. 35 15 c 0 c 0 c Live/work allowed with CUP
Appendix C. Governmental and Non-Governmental Constraints
October 2022 Appendix C C-5
Overlay Zones
Four overlay zones in the Town Code, the Planned Development (PD) zone, the Landmark and Historic
Preservation (LHP) zone, the Affordable Housing Overlay Zone (AHOZ), and the Public School Zone (PS) that
apply to housing development in Los Gatos.
Planned Development (PD)
The PD overlay zone was updated in 2018 and is intended to preserve, enhance, and/or promote development
that highlights the Town’s characteristics. This includes natural and historic resources, production of affordable
housing, maximization of open space, and projects that provide a public benefit to the Town’s citizens. As an
incentive to housing development, the PD overlay provides alternative standards for housing developments with a
minimum of 40 percent of the units affordable to households of very low, low, or moderate income.
Landmark and Historic Preservation (LHP)
The LHP overlay zone designation is applied to individual sites, structures, or areas deemed as architecturally or
historically significant. There are five designated LHP overlay zones within the Town, including the Almond
Grove, Downtown Commercial, Fairview Plaza, and University-Edelen districts. Existing and proposed
structure(s) within these LHP overlay zones are subject to a special design standard and review process
regarding their appearance, use, and maintenance before the Historic Preservation Committee.
Affordable Housing Overlay Zone (AHOZ)
The AHOZ is intended to increase the supply and variety of housing types to promote tenure and affordability.
The AHOZ promotes densities, development standards and incentives that will encourage the production of
housing affordable to all income levels of the Town's RHNA allocation. The properties can be developed
consistent with the AHOZ development standards, densities and incentives or under the existing zoning
requirements, but not both. The 2023-2031 Housing Element lists the one property, the Southbay Development
located on Knowles Drive, east of Winchester Boulevard as a key housing opportunity site for a mixed income
affordable housing project. The designation of this site will assist the Town in meeting its fair share of the regions
housing needs required by the State.
The AHOZ permits development at a density of 20 units per acre by-right, with an Architecture and Site approval,
for projects in which at least half of the units are affordable to lower or moderate-income households. The AHOZ
provides a 30-foot building height with an automatic allowance for 35 feet for integrated (first floor) garage or
podium parking. Additional height can be granted through the Architecture and Site Plan review process. The 40
percent lot coverage and parking reduction is consistent with the State Density Bonus maximum parking
requirements. Further parking reductions are allowed for properties within a quarter mile of the planned Vasona
Light Rail Station, for senior-only housing and housing for persons with disabilities. All other property
development standards are consistent with the Town's R-M Standards.
The AHOZ also allows up to four automatic concessions. The concessions include reductions in:
Parking: one space for studio and one-bedroom units, two spaces for three-to-four-bedroom units, 2.5
spaces for four or more-bedroom units, one space for units reserved for seniors or persons with
disabilities, reduction to one space per unit for developments within one-quarter mile to the proposed
Vasona Light Rail Station.
Setbacks: Any two property setbacks may be reduced by up to 50 percent.
Increase in lot coverage: The lot coverage may be increased up to 50 percent from 40 percent.
Processing fees: The Town shall waive or defer planning, engineering, and building processing fees,
except those that are paid directly to Town consultants or for technical studies.
The developer can select one of the following types of fees to be waived as one of the four available
concessions:
a.Planning and engineering application fees (but not Town consultant fees).
b.Building plan check and inspection fees.
c.Construction mitigation fee.
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C-6 Appendix C October 2022
Priority processing: The Town gives projects the highest processing priority for planning entitlements,
building plan check and building inspections.
The Valley Transportation Authority has deferred the development of the Vasona Light Rail Station indefinitely.
Given this recent development, the Town will initiate a Code amendment to reduce parking within a quarter mile
of transit stops as a further development incentive in the AHOZ.
Public School Zone (PS)
The PS Overlay Zone is intended to all school buildings to be used for community and educational purposes,
such as museums, community centers, and nurseries, without extensive exterior modifications. Any land owned
by a public school district may be designated as a PS overlay zone.
Multi-family Housing
Multi-family housing is permitted in a residential zone, including the R-M zone and is permitted in a mixed-use
development with a Conditional Use Permit (CUP) in the following commercial zoning districts, C-1, C-2, and CH
zones. One of the intents of these districts is to direct and facilitate housing of various density ranges. A
permitting process that is more onerous or uncertain for multi-family units than for single-family presents a
concern and could be considered a constraint on multi-family housing. In the R-M zone, the Town requires
apartments include one and a half parking spaces per unit, regardless of the number of bedrooms in the unit, plus
one visitor parking space for each apartment unit, unless the Planning Commission makes a finding that more or
fewer visitor parking is necessary due to the size or type of housing unit(s).
A CUP can increase risk and costs associate with the planning entitlement process act as a deterrent to housing
developers. Long permit processing times or permit processes that have a high degree of uncertainty (i.e.,
discretionary reviews or processes with multiple public meetings) increase the cost of housing for developers,
either by increasing their carrying costs as they wait for permits, or by increasing the chance that a project will be
rejected after a long wait. In either case, a developer working in a jurisdiction with an onerous permitting process
will demand higher profits to account for the increased risk, thereby increasing the overall development costs. In
order to remove this regulatory constraint, the Housing Element includes an Implementation Program to remove
the requirement for a CUP for residential development in zoning districts that current allow multi-family uses with
a CUP.
In Los Gatos, the predominant housing type in the Town is single family development which are allowed by right
in the R-M zone. When single family residences are allowed in higher density residential zoning districts, the
likelihood and ability of a developer constructing higher density residential units is diminished. Housing
developers face higher risk, including neighborhood opposition, when single-family homes are present in multi-
family zoning districts.
Manufactured Housing
Manufactured, otherwise known as prefabricated or factory-built, housing is constructed off-site and then
transported to the property. It is allowed in all residential districts in Los Gatos subject to its compliance with Town
regulations.
Transitional and Supportive Housing
According to California Health and Safety Code Section 50675.2, transitional housing is rental housing with, at
most, a six-month limit on the length of stay for tenants. Transitional housing would be available to homeless
individuals and/or families in need of temporary housing until they can secure more permanent housing. The
Town of Los Gatos Zoning Code uses the State’s definitions for transitional housing. Transitional housing is
permitted as a residential use consistent with State law.
According to California Health and Safety Code Section 50675.14, supportive housing is housing that is linked to
on- or off-site services and is occupied by low-income persons with mental disabilities, chronic health issues or
substance abuse issues or persons with disabilities that were developed before age 18. Supportive housing has
no limit on the length of stay for tenants. Supportive housing in Los Gatos consists of small family home
Appendix C. Governmental and Non-Governmental Constraints
October 2022 Appendix C C-7
residential care facilities, which are permitted in all residential zoning districts except Mobile Home Residential
(RMH). In Los Gatos, licensed residential care facilities for six or less persons are allowed by right in all
residential districts consistent with California Health and Safety Code Section 1267.8.
Accessory Dwelling Unit (ADU)
Accessory dwelling units are complete independent housing units that can be either detached or attached from an
existing single-family residence. Based on their relatively small size, and because they do not require paying for
land or major new infrastructure, ADUs are considered affordable by design. ADUs can provide affordable
housing options for family members, seniors, students, in-home health care providers, and other small household
types. ADUs can also be useful to generate additional rental income for the homeowner, making homeownership
more financially feasible.
In 2020 the Town adopted Ordinance 2307, amending the Town Code to further address barriers to the
development of ADUs and to conform with a series of State bills aimed at encouraging single-family homeowners
to add ADUs to their property. Permitted zones allowing the ADUs include the R-1, R-D, R-M, R-1D, RMH, HR
and RC zones. The Town’s ADU Ordinance allows a 10 percent increase in the floor area ratio standards for an
ADU. All detached units must comply with lot coverage maximum of their designated zone. ADUs are not to
exceed 1,200 square feet. One parking space is required per unit or bedroom, unless the ADU is located within
half a mile of a transit stop.
A new ADU requires the submittal of an Accessory Dwelling Unit Application to the Community Development
Department. Over the past three years, the Town has averaged 50 ADUs per year. In order to further incentivize
production, a program to eliminate Building fees if the unit is deed restricted for very low- and low-income
households is included in the Housing Element.
Building and Code Compliance
In addition to the General Plan land use designations and Town Code, Los Gatos has recently adopted updated
building codes that enforce Town regulations with the purpose of protecting the lives, health, property, and public
welfare of Los Gatos residents. Each Code is an enforcement of State and local standards and is not considered
a constraint on housing production in Los Gatos. The following 2019 California Building Standards Codes have
been adopted, as amended by the Town:
Part 1 California Administrative Code.
Part 2 California Building Code, Volumes 1 and 2, including Appendices B, I, and J.
Part 2.5 California Residential Code including Appendices H, K, O, Q, S, V, and X.
Part 3 California Electrical Code.
Part 4 California Mechanical Code.
Part 5 California Plumbing Code including Appendices A, B, D, G, I, K, and L.
Part 6 California Energy Code.
Part 8 California Historical Building Code including Appendices A.
Part 9 California Fire Code.
Part 10 California Existing Building Code including 20118 International Existing Building Code Chapters 9
and 14, as well as Appendices A2, A3, A4, and A5.
Part 11 California Green Building Standards Code (CALGreen) Chapters 1 through8 only.
Part 12 California Referenced Standards Code.
2018 International Property Maintenance Code.
The Town also has a Code Compliance Officer that enforces the Town’s zoning regulations and building and
safety codes. The program reviews and responds to code complaints. The Town has adopted the 2018
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C-8 Appendix C October 2022
International Code for Property Maintenance and the 2019 California Existing Building Code, including 2018
International Existing Building Code Chapters 9, 14, and Appendices A2, A3, A4, and A5. Affordable units
developed under the Below Market Price (BMP) Program must undergo an annual compliance audit.
On- and Off-Site Improvements
The Town requires standard on- and off-site improvements for development, which are intended to meet health
and safety requirements of the community. These standard improvements are not considered a constraint on
development because the Town does not include improvements beyond what is required to meet health and
safety requirements. Subdivision design standards for the Town, described in the Town Code starting at Section
29.10.06701, include the following on- and off-site improvements:
Parking bays may be required on narrow streets where parking may be prohibited on either or both sides
of the street.
Roadways must be paved with asphalt concrete.
Sidewalks are required on all streets in a subdivision unless the lots will be 20,000 feet in size or more.
Curbs and gutters must be constructed on all streets.
Culverts, storm drains, and drainage structures will be required in a subdivision.
Sanitary sewers with house service laterals are required to serve each lot, with some exceptions in hillside
areas.
Underground utilities with connections are required for each lot.
Street lighting shall be installed in accordance with Town standards
Design Guidelines and Objective Design Standards
The Town has adopted Residential Design Guidelines for single-family and two-family dwelling units, which
incorporate the Town’s previous Residential Pre-1941 Design Guidelines for historically significant structures,
sites, and historic districts in Los Gatos. The Town has also adopted Hillside Development Standards and
Guidelines. These sets of development standards and design guidelines are used in the development and design
review process for Los Gatos and complement the Town’s zoning regulations. The Hillside Development
Standards and Guidelines were adopted in January 2004 and modified in 2020. The Residential Design
Guidelines were updated and adopted in 2008.
The Town of Los Gatos is developing Objective Design Standards for the review of multi-family housing and
mixed-use development applications. This effort is in response to State legislation requiring jurisdictions to adopt
objective standards and to implement them in a streamlined review of qualifying housing projects. Objective
standards are defined under State law as “standards that involve no personal or subjective judgement by a public
official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and
knowable by both the development applicant or proponent and the public official prior to submittal” (California
Government Code, Section 65913.4).
On September 14, 2022, the Planning Commission reviewed and recommended approval of the Draft Objective
Design Standards with modifications. The Town Council is expected to consider the Draft Objective Design
Standards in mid-November 2022.
Residential Design Guidelines
Residential Design Guidelines in Los Gatos address the following design characteristics for single-family and two-
family dwelling units in all zoning districts except for the RC and HR zones:
Historic Designations. When necessitated by the designating ordinance, Historic Preservation
Committee review of a development is required for developments that affect a historically designated
property or are located in a historic district.
Appendix C. Governmental and Non-Governmental Constraints
October 2022 Appendix C C-9
Site Development. This section focuses on the design and layout of the housing development in relation
to its site. Site planning issues addressed include site design, solar orientation, shadow effect, and
easements and dedications. This section provides information on landscaping requirements, sensitivity to
adjacent neighbors, and conformity to neighborhood street and sidewalk edges.
Building Design. This section focuses on the design and layout of development in relation to the
surrounding neighborhood. Issues addressed include harmony and compatibility with the streetscape and
surrounding structures; the scale and mass of the development including second-story additions,
significant remodels, demolitions and replacement structures, exterior material and colors, building
components, energy conservation, and privacy. Neighborhood compatibility for replacement structures
shall be based on the following criteria:
Existing architectural style of surrounding neighborhood.
Size of the lot on which the development is located.
Size of homes adjacent to the development and along the street on which the development is
located.
Transitioning neighborhood.
Impacts on the site and surrounding property.
Landscaping/Open Space. This section addresses tree preservation in accordance with Division 2 of the
Town Code for adherence to the Town’s Tree Protection Ordinance.
The Los Gatos Residential Design Guidelines promote safe, compatible, and well-designed housing in Los Gatos.
These standards are not a constraint on single-family and two-family housing development.
Hillside Development Standards and Guidelines
The Hillside Development Standards and Guidelines are consistent with the Town’s policies and complement and
coordinate with the Town’s Hillside Specific Plan. These standards and guidelines apply to all areas zoned HR,
RC, and some lots zoned R-1 as noted on the Town’s Hillside Area Map. The goal of these standards and
guidelines is to encourage high-quality design that incorporates sustainable development and open space
preservation.
The following summarizes the Hillside Development Standards and Guidelines for Los Gatos:
Constraints Analysis and Site Selection. Developers must conduct a constraints analysis as deemed
necessary by the Town, consult with neighbors, meet with Town staff to discuss the development site, and
conduct a view analysis for the development site. The constraints analysis, as required by the Town,
requires that developers of hillside property identify the Least Restrictive Development Area (LRDA), or
areas deemed most feasible for development on hillsides. For the view analysis, developers must analyze
aesthetic impacts; preserve hillside and ridgeline views; and preserve natural features, riparian corridors,
and wildlife.
Site Planning. This section describes site planning standards and guidelines that minimize physical and
aesthetic impacts to the site topography. Standards and guidelines discuss grading, drainage, driveways
and parking, and safety regarding geologic and fire hazards.
Development Intensity. This section outlines the maximum allowable floor area of development based
on lot size.
Architectural Design. The following architectural design characteristics are addressed in this section:
Neighbor-friendliness.
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C-10 Appendix C October 2022
Sustainability.
Fire safety.
Building height.
Bulk and mass.
Roofs.
Architectural features and detailing.
Materials and colors.
Site Elements. The specific elements of a hillside development site are addressed:
Fences and walls.
Driveway entries.
Retaining walls.
Outdoor lighting.
Accessory buildings, swimming pools, and sport courts.
Impervious surfaces.
Landscape Design. Because hillside sites are more prone to erosion, landslides, mudslides, and fire and
water hazards than flatter sites in Los Gatos, the following concepts are addressed in the landscaping
standards and guidelines for hillside development:
Fire safety.
Garden and turf locations and plant selection.
Irrigation.
Impervious surfaces.
Plant materials.
Tree preservation.
Planned Development Projects. This section describes standards and guidelines that relate specifically
to hillside Planned Developments (PDs) in Los Gatos. Additional restrictions are placed on the LRDA for
PDs. This section includes standards and guidelines focusing on site preparation, drainage, lot
configuration and building locations, street layout and driveways, and trail design.
Draft Objective Design Standards
The purpose of the Objective Design Standards is to ensure that new qualifying multi-family and mixed-use
projects in Los Gatos provide high-quality architecture, integrate with surrounding development, and include well-
designed amenities and open spaces. The Objective Design Standards will:
Comply with recent State housing legislation.
Implement streamlined and ministerial review processes for qualifying projects.
Ensure that qualifying projects align with the Town’s expectations and vision to maintain and support the
character of the Town.
Provide a set of clear criteria to guide development.
Establish an objective framework by which a qualifying project will be evaluated.
The Draft Objective Design Standards are organized into two primary sections: Site Standards and Building
Design. The Site Standards section includes objective standards for site layout and building placement, vehicular
access and parking, and outdoor spaces and amenities. The Building Design section includes objective
standards for building form and massing, façade articulation, materials, and roof design.
Appendix C. Governmental and Non-Governmental Constraints
October 2022 Appendix C C-11
The Draft Objective Design Standards are intended to promote predictable, safe, and well-designed multi-family
housing in Los Gatos. On September 14, 2022, the Planning Commission reviewed and recommended approval
of the Draft Objective Design Standards with modifications. The Town Council is expected to consider the Draft
Objective Design Standards in mid-November 2022.
Governmental Fees and Exactions
Government policy at both the State and jurisdictional levels play a major role in determining the costs of building
new housing. Regulations and permitting processes that result in lengthy or uncertain development carry higher
risk and increased financing. Additionally, frequent delays in the entitlement and approval process directly
increase costs, such as additional architectural work, inspections, and community meetings.
Streamlining permitting processes, applying permit application processes consistently, increasing
interdepartmental cooperation, having adequately funded and staffed planning departments, and increasing by-
right housing are all actions jurisdictions can take to reduce the constraints represented by fees and permit
processing times.
Governmental fees can be a significant portion of the cost of housing development and can therefore be
considered a constraint to housing development. Table C-2 below provides all of the planning and development
fees that may apply to residential development projects in Los Gatos. Fees are due at the time an application is
accepted by the Town, except for projects in the Affordable Housing Overlay Zone, which can waive or defer their
fees as a development incentive.
Development fees are a standard component of new construction. Although these fees can add to the cost of
residential development, they are necessary for new development to pay its fair share of municipal services and
infrastructure for new development. Without adequate development fees, the Town would be unable to serve
future growth with adequate municipal services. According to the Town of Los Gatos’ Community Development
Department Planning Division, developing a new single-family home (non-hillside) in Los Gatos typically costs
about $11,863.28 in planning fee plus an additional deposit of $2,750 for review by the Town’s consulting
architect and a deposit of $2,200 for a review by the Town’s consulting arborist. The fee for a new two-family unit
is $15,789.16. Multi-family units, three or more units typically cost $16,281.92 in planning fees and the same
consulting architect and arborist fees are applicable. These fees include Planning Commission or Design Review
Committee approval, fees associated with a Planned Development that does not require a General Plan or
Specific Plan amendment, and fees related to finalizing the map and Certificate of Compliance.
On May 4, 2021, the Town Council adopted Ordinance 2318 amending Chapter 25 of the Town Code to establish
a public art requirement for private developments. The requirement for public art will apply to following types of
development:
(a) New commercial developments (including mixed-use projects), including new construction, and additions
and remodels that add more than 50% square footage; and
(b) New residential projects of three or more units, including new construction, and additions and remodels
that add more than 50% square footage.
(c) Notwithstanding subsections (a) and (b) above, this Chapter shall not apply to:
(i)Affordable housing developments, or, if affordable housing is a part of the development, the affordable
housing units shall be subtracted from the valuation of the project as in subsection (d) below;
(ii)Historic renovations;
(iii)Repair or reconstruction of structures damaged by flood, fire, wind, earthquake, or other disaster;
(iv)Seismic retrofit projects;
(v)Single family and two-family residential units;
(vi) Accessory dwelling units or junior accessory dwelling units;
(vii) Any project exempted by federal or state law;
(viii) Municipal facilities; and
(ix) Buildings or structures primarily used for religious worship.
HCD Draft Initial Review 2023-2031 Housing Element
C-12 Appendix C October 2022
A developer may satisfy the requirements of Chapter 25 of the Town Code by constructing or installing on-site
public art valued at one percent of the building permit valuation.
Table C-2 Community Development Department Fees Effective July 1, 2022
Application
Fee
4%
Permit
Tracking
Fee
10%
General
Plan
Update
10%
Advance
Planning
Special
Project
Engineering
Dev Review
Services
Fee Total Fee
1 ZONING APPROVALS
A Architecture and Site Applications
1 Development Review Committee (DRC) Approval
a.New single-family detached
(HR & RC zone)$9,508.00 $380.32 N/A $950.80 $4,396.00 $15,235.12
b.New single-family detached
(HR & RC zones) per unit, as
part of a Planned
Development
$6,603.00 $264.12 N/A $660.30 $4,393.00 $11,920.42
c.New single-family or two-
family units $6,552.00 $262.08 N/A $655.20 $4,394.00 $11,863.28
d. New single-family or two-
family (any other zone) per
unit, as part of a Planned
Development
$4,682.00 $187.28 N/A $468.20 $4,398.00 $9,735.48
e.Minor projects (a
development proposal that
does not significantly change
the size, mass, appearance or
neighborhood impact of a
structure, property or parking
lot)
$2,375.00 $95.00 N/A $237.50 $3,374.00 $6,081.50
2 Planning Commission Approval
a.Supplemental fee for DRC
applications as determined in
Section 1.A.(1) or minor
residential development
applications that require
Planning Commission approval
$3,355.00 $134.20 N/A $335.50 $1,225.00 $5,049.70
b.New two-family unit $9,994.00 $399.76 N/A $999.40 $4,396.00 $15,789.16
c.New nonresidential $11,471.00 $458.84 N/A $1,147.10 $4,396.00 $17,472.94
d.New multi-family $10,428.00 $417.12 N/A $1,042.80 $4,394.00 $16,281.92
e.All other $5,815.00 $232.60 N/A $581.50 $4,396.00 $11,025.10
B Conditional Use Permits
1 Conditional Use Permit $6,726.00 $296.04 N/A $672.60 $1,431.00 $9,098.64
2
Conditional Use Permit (when
consolidated with another
application for new
development)
$1,118.00 $44.72 N/A $111.80 $820.00 $2,094.52
C Variance $4,947.00 $197.88 N/A $494.70 $1,431.00 $7,070.58
D Rezoning (other than Planned
Development)
Appendix C. Governmental and Non-Governmental Constraints
October 2022 Appendix C C-13
Application
Fee
4%
Permit
Tracking
Fee
10%
General
Plan
Update
10%
Advance
Planning
Special
Project
Engineering
Dev Review
Services
Fee Total Fee
1 Without General Plan or
Specific Plan Amendment
Actual Cost
($5,000 min.)
$200
(min.)
$500
(min.)
$500
(min.) N/A $6,200.00
2 With General Plan or Specific
Plan Amendment
Actual Cost
($7,000 min.)
$280
(min.)
$700
(min.)
$700
(min.) N/A $8,680.00
E Planned Development
1 Without General Plan or
Specific Plan Amendment Actual Cost YES YES YES N/A Varies
2
Without General Plan or
specific Plan Amendment (HR
or RC Underlying Zone)
Actual Cost YES YES YES N/A Varies
3 With General Plan or Specific
Plan Amendment Actual Cost YES YES YES N/A Varies
4
With General Plan or Specific
Plan Amendment (HR or RC
Underlying Zone)
Actual Cost YES YES YES N/A Varies
5 Town Council Modification to
a Planned Development
Actual Cost
($5,000 min.)
$200
(min.)
$500
(min.)
$500
(min.) N/A $6,200.00
6 DRC Modification to a Planned
Development Zone
Actual Cost
($3,000 min.)
$120
(min.)
$300
(min.)
$300
(min.) N/A $3,720.00
7 Publication costs for the Planned Development Ordinance shall be paid by the applicant.
F Minor Residential
Development $2,375.00 $95.00 N/A $237.50 N/A $2707.50
G Agricultural Preserve
Withdrawal $4,035.00 $161.40 N/A $403.50 N/A $4,599.90
H Planning Division Certificates of Use and Occupancy
1 Change of Use $244.00 $9.76 N/A $24.40 N/A $278.16
2
Change of occupancy
(excluding change of
proprietor of a continuing
business enterprise)
$164.00 $6.56 N/A $16.40 N/A $186.96
L Accessory Dwelling Unit
1 New or existing unit $1,419.00 $56.76 N/A $141.90 N/A $1,617.66
M Mobile Home Park Conversion
Permit
Actual Cost
($5,000 deposit) Varies Varies Varies N/A Varies
N General Plan/Town Code
Amendments
Actual Cost
($5,000 deposit) N/A N/A N/A N/A Varies
2 SUBDIVISIONS
A Lot Line Adjustment (DRC
Approval) $2,254.00 $90.16 N/A $225.40 $3,782.00 $6,351.56
B 4 Lots or Less (DRC Approval) $9,081.00 $363.24 $908.10 $908.10 $4,194.00 $15,454.44
C
4 Lots or Less (as part of a
Planned Development) (DRC
Approval)
$3,750.00 $150.00 $375.00 $375.00 $4,398.00 $9,048.00
D 5 Lots or More $10,230.00 $409.20 $1,023.00 $1,023.00 $5,420.00 $18,105.20
E
5 Lots or More (as part of a
Planned Development) (DRC
Approval)
$4,397.00 $175.88 $439.70 $439.70 $5,420.00 $10,872.28
HCD Draft Initial Review 2023-2031 Housing Element
C-14 Appendix C October 2022
Application
Fee
4%
Permit
Tracking
Fee
10%
General
Plan
Update
10%
Advance
Planning
Special
Project
Engineering
Dev Review
Services
Fee Total Fee
F Vesting Tentative Map Actual Cost
($500 deposit) N/A N/A N/A N/A Varies
G Lot Merger and Reversion to
Acreage (DRC Approval) $1,117.00 $44.68 $ N/A $111.70 $3,781.00 $5,054.38
H Condominium $7,884.00 $315.36 $788.40 $788.40 N/A $9,776.16
I Condominium (as part of a
Planned Development) $3,750.00 $150.00 $375.00 $375.00 N/A $4,650.00
J Certificate of Compliance (DRC
Approval) $3,257.00 $130.28 N/A $325.70 $2,350.00 $6,062.98
K
VTM applications that require
Town Council
approval and/or DRC
applications that
require Planning Commission
approval. This
fee supplements the above
established
fees.
$2,824.00 $112.96 N/A $282.40 N/A $3,219.36
3 MISCELLANEOUS
APPLICATION FEES
A Time Extensions to Approved
Applications
50% of Current
Fee Varies Varies Varies Varies Varies
B Modification of Approved
Application
75% of Current
Fee Varies N/A Varies Varies Varies
C Conceptual Development
Advisory Committee Review $2,966.00 $118.64 N/A $296.60 N/A $3,381.24
4 ENVIRONMENTAL
ASSESSMENT FEES
A Categorical Exemption No Fee N/A N/A N/A N/A No Fee
B Initial Study (Deposit)* $5,000.00 N/A N/A N/A Yes Varies
C
Draft Initial Study Review Fee
(or actual
cost if part of a Planned
Development,
General Plan and/or Town
Code
Amendment)
$2,950.00 N/A N/A N/A $2,045.00 $4,995.00
D Environmental Impact Report
(EIR) Consultant’s Fee N/A N/A N/A N/A Varies
E Draft EIR Review Fee $12,184 Plus
10% EIR Cost N/A N/A N/A Varies Varies
F Impact Monitoring Program
(AB3180)
Actual Cost on an
hourly basis plus
cost of
Consultant (if
necessary)
N/A N/A N/A N/A Varies
5 OTHER
Appendix C. Governmental and Non-Governmental Constraints
October 2022 Appendix C C-15
Application
Fee
4%
Permit
Tracking
Fee
10%
General
Plan
Update
10%
Advance
Planning
Special
Project
Engineering
Dev Review
Services
Fee Total Fee
A Pre-application Conference
Fee No fee Varies Varies Varies N/A Varies
B Fence Height Exceptions $292.00 N/A N/A N/A N/A $292.00
C Peer/Technical Review Actual Cost
($2,000 deposit) N/A N/A N/A N/A Varies
D
Fees for Additional Tech
Review and/or
DRC Review DRC beyond 3
meetings,
Planning Commission hearing
beyond 2
meetings, Town Council
hearing beyond 1
meeting
Actual Cost N/A N/A N/A N/A Varies
E
Request for Service Not
Covered by Any
Other Fee
Actual Cost N/A N/A N/A N/A Varies
F Building Permit Plan Check Fee 20% of Building
Fee N/A N/A N/A N/A Varies
G Surcharges
1 Permit Tracking Maintenance
and Update Surcharge
4% of
Development
Application Fee
N/A N/A N/A N/A Varies
2 General Plan Update
Surcharge
.5% of Bldg. Valuation for
new construction and
additions or 10% of zone
change & subdivision fee
N/A N/A N/A Varies
3 Advanced Planning Projects
10% of
Development
Application
Fee
N/A N/A N/A N/A Varies
4 Route 85 Study Plan Surcharge
**
10% of Development
Application Fee for property
in Route 85 Study Area Plan
N/A N/A N/A Varies
M Appeals
1
Fee to Appeal Planning
Commission Decision to Town
Council
$464 per
residential
$1,867 per
commercial,
multi-family or
tentative
map
N/A N/A N/A N/A Varies
2
Fee to remand applications
from Town Council to Planning
Commission where no error
was made by Planning
Commission
Actual Cost N/A N/A N/A N/A Varies
HCD Draft Initial Review 2023-2031 Housing Element
C-16 Appendix C October 2022
Application
Fee
4%
Permit
Tracking
Fee
10%
General
Plan
Update
10%
Advance
Planning
Special
Project
Engineering
Dev Review
Services
Fee Total Fee
3
Fee to Appeal Director of
Community Development or
Development Review
Committee decision to
Planning Commission
$234 per
residential N/A N/A N/A N/A Varies
4 Tree Appeals $95.00 N/A N/A N/A N/A $95.00
5 Appeal Transcription fee of
Planning Commission minutes
Actual Cost min.
$500 deposit N/A N/A N/A N/A Varies
L. Research Services Minimum
Charge
Actual Cost min.
$100 deposit N/A N/A N/A N/A Varies
Table C-3 Total Fees per Unit
Jurisdiction Single-Family Small Multi-family Large Multi-family
Campbell $72,556 $20,599 $18,541
Cupertino $136,596 $77,770 $73,959
Gilroy $69,219 $40,195 $39,135
Los Altos Hills $146,631 N/A N/A
Los Gatos $11,202 $15,375 $15,375
Milpitas $77,198 $74,326 $59,740
Monte Sereno $33,445 $4,815 $4,156
Morgan Hill $55,903 $41,374 $36,396
Mountain View $90,423 $69,497 $82,591
San Jose $9,919 $23,410 $23,410
Santa Clara $72,034 $7,299 $3,048
Saratoga $64,272 $17,063 $15,391
Sunnyvale $133,389 $126,673 $98,292
Note: Inclusive of impact, building and entitlement fees. Source: SCCPC, 2022 citiesassociation.org/documents/constraints-survey-data-
summary-2022 and Los Gatos staff.
Appendix C. Governmental and Non-Governmental Constraints
October 2022 Appendix C C-17
Table C-4 Fees as a Percentage of Total Development Costs
Jurisdiction Single-Family Small Multi-family Large Multi-family
Campbell 2.6% 2.7% 2.6%
Cupertino 2.9% 10.3% 10.5%
Gilroy 1.5% 5.3% 5.6%
Los Altos Hills 3.1% N/A N/A
Los Gatos 1.2% 0.8% 0.5%
Milpitas 2.8% 9.8% 8.5%
Monte Sereno 0.7% 0.6% 0.6%
Morgan Hill 2.0% 5.5% 5.2%
Mountain View 3.3% 9.2% 11.8%
San Jose 0.4% 3.1% 3.3%
Santa Clara 2.6% 1.0% 0.4%
Saratoga 1.4% 2.3% 2.2%
Sunnyvale 4.8% 16.8% 14.0%
Unincorporated County 0.9% N/A NA
Note: Calculation uses a county-wide average total development cost. Source: SCCPC, 2022 citiesassociation.org/documents/constraints-
survey-data-summary-2022
Permit fees and processing times are not significant constraints to housing production in Los Gatos. In the Spring
of 2022, the Santa Clara County Planning Collaborative conducted a survey of fees and permit processing times
in Santa Clara County. Fourteen of fifteen jurisdictions completed the survey, an excellent response rate. The
results indicate that Los Gatos has overall permit fees that are within the average range of Santa Clara County
jurisdictions.
The Town’s fees also represent a relatively low percentage of the overall cost to develop housing in Los Gatos.
Based on the Santa Clara County Planning Collaborative survey results and an analysis on housing development
costs performed by Century Urban, a San Francisco based real estate consulting firm, the fees represent
approximately 1.2 percent of total development costs for a single-family home, 0.8 percent for a 10-unit multi-
family development, and 0.5 percent for a 100-unit multi-family development. The fee structure does not
disproportionally burden multi-family housing.
Processing and Permitting Time
Government policy at both the State and jurisdictional levels play a major role in determining the costs of building
new housing. Regulations and permitting processes that result in lengthy or uncertain development carry higher
risk and increased financing. Additionally, frequent delays in the entitlement and approval process directly
increase costs, such as additional architectural work, inspections, and community meetings. Streamlining
permitting processes, applying permit application processes consistently, increasing interdepartmental
cooperation, having adequately funded and staffed planning departments, and increasing by-right housing are all
actions jurisdictions can take to reduce the constraints represented by fees and permit processing times.
Each stage of the residential development process must go through some form of Town approval. On average, a
single- or multi-family infill residential application typically processes in approximately three to six months, unless
environmental review is required. Hillside residential applications on average take four to six months to process.
Mixed-use projects are processed in approximately four to eight months, unless environmental review is required.
HCD Draft Initial Review 2023-2031 Housing Element
C-18 Appendix C October 2022
With environmental review, the process generally takes six to 18 months, depending on the size and complexity
of the project.
Processing of a typical, market rate single- or multi-family housing application includes the following steps:
Submission of an Architecture and Site Application.
Distribution of the application to Planning, Building, Engineering, and the Santa Clara County Fire District
departments.
Staff review of application and staff conference with the applicant to resolve any concerns or plan
deficiencies, including design issues.
If deemed complete, staff continues processing the application and begins environmental review, if
necessary.
Completion of environmental review and traffic impact analysis, as appropriate. Arborist review,
architectural review, and/or geotechnical review may be conducted during this time through the
Architecture and Site application.
Approval is required by the following bodies:
Development Review Committee (with appeal to the Planning Commission and further appeal to the Town
Council) for projects that require no change in the General Plan or Zoning Code.
For hillside development applications, Planning Commission approval may be required depending on the
scope of the project.
Town Council for projects that require a change in the General Plan or Zoning Code, and for Planned
Developments.
Processing for a typical mixed-use housing project includes the following steps:
Submission of application, including application for a Conditional Use Permit (CUP), and an Architecture
and Site Application.
Distribution of the application to Planning, Building Engineering, and the Santa Clara County Fire District
departments.
Staff review of application and staff conference with applicant to resolve any concerns or plan deficiencies,
including design issues.
If deemed complete, staff continues processing the application and begins environmental review, if
necessary.
Completion of environmental review and traffic impact analysis, as appropriate. Arborist review,
architectural review, and/or geotechnical review may be conducted during this time through the
Architecture and Site application.
Approval is required by one or both of the following bodies:
Planning Commission (with appeal to the Town Council) for projects that require no change in the
General Plan or Zoning Code, and for a CUP and Architecture and Site Application.
Town Council for projects that require a change in the General Plan or Zoning Code, and for
Planned Developments.
Design and neighborhood compatibility issues also often lengthen the permitting and processing time. To
address this problem, the Town contracts out to an architectural consultant to review plans and provide
recommendations on development applications compliance with the Residential Design Guidelines or Hillside
Development Standards and Guidelines.
Architectural, geotechnical, and arborist reviews are conducted early in the development application process.
These reviews are conducted during the review of the Planned Development or Architecture and Site applications
and do not lengthen the processing time. These reviews also streamline the public hearing process, allowing the
Appendix C. Governmental and Non-Governmental Constraints
October 2022 Appendix C C-19
Planning Commission to rely on the recommendations of Town staff and the Town’s consultants to receive
qualified input from an architect, arborist, and geotechnical consultant, leading to a more efficient approval
process.
Table C-5 Processing Times (in months)
Jurisdiction ADU
Process
Ministerial
By-Right
Discretionary
By-Right
Discretionary
(Development
Review
Commitee)
Discretionary
(Planning
Commission)
Discretionary
(Town
Council)
Campbell 1 1 3 N/A 5 8
Cupertino 1 to 3 1 to 6 2 to 4 2 to 4 3 to 6 6 to 12
Gilroy 1 to 2 1 to 2 2 to 4 N/A 4 to 5 5 to 6
Los Altos Hills 1 to 2 0.5 to 2 2 to 3 3 to 4 4 to 6 5 to 8
Los Gatos 1 to 2 1 to 2 1 to 2 2 to 4 4 to 6 6 to 12
Milpitas 1 to 3 1 to 3 2 to 4 3 to 4 4 to 6 6 to 12
Monte Sereno 0.75 0.75 1 1 to 2 1 to 2 1 to 2
Morgan Hill 1 to 2 1 to 3 *2 to 3 2 to 3 4 to 6 4 to 6
Mountain View 3 to 5 4 to 6 2 to 3 *6 to 18 N/A 12 to 24
San Jose 2 1 to 3 7 7 7 to 11 5 to 12
Santa Clara 0 to 1 0 to 1 0 to 3 4 to 9 6 to 9 6 to 12
Saratoga 1 1 to 2 2 to 3 N/A 4 to 6 6 to 12
Sunnyvale 1 to 3 1 to 3 3 to 6 6 to 9 9 to 18 9 to 18
Unincorporated
County 4 to 6 6 to 8 9 to 12 12 to 15 15 to 18 15 to 18
Entitlements Only. Source: SCCPC, 2022 citiesassociation.org/documents/constraints-survey-data-summary-2022
Jurisdictional permit processing procedures that are lengthy or uncertain can dissuade developers from building
new housing or result in housing that is more expensive. Within Los Gatos, the permit processing times are
within the average range for jurisdictions within Santa Clara County. The Town’s permit process also does not
disproportionally burden ADU applications or applications for multi-family housing.
SB 35 Streamlining
(Government Code section 65913.4) allows qualifying development projects with a specified proportion of
affordable housing units to move more quickly through the local government review process and restricts the
ability of local governments to reject these proposals. The bill creates a streamlined approval process for
qualifying infill developments in localities that have failed to meet their RHNA, requiring a ministerial approval
process, removing the requirement for CEQA analysis, and removing the requirement for discretionary
entitlements granted by the Planning Commission.
Since the adoption of this section of the Government Code, the Town has received one application under these
provisions. The Town has included Program AM in the Housing Element to prepare an SB35 checklist and
written procedures for processing SB35 applications.
HCD Draft Initial Review 2023-2031 Housing Element
C-20 Appendix C October 2022
SB9 California Housing Opportunity and More Efficiency (HOME) Act
SB9, also known as the California Housing Opportunity and More Efficiency (HOME) Act, is a state bill that
requires cities to allow one additional residential unit on parcels zoned for single-dwelling units. Since the
adoption of this section of the Government Code, the Town has adopted an interim SB9 ordinance and is in the
process of developing a permanent ordinance for adoption by the end of 2022.
Requests to Develop at Densities Below Those Permitted
New State Housing Element law now requires the non-governmental constraints analysis to evaluate developer
requests to build at densities below the density identified in the Housing Element sites inventory. In Los Gatos,
properties generally develop around the mid to high range of allowable densities. Requests to develop at
densities below those permitted are not an issue in Los Gatos.
Length of time between Application Approval and Building Permit Issuance
New Housing Element law now also requires an examination of the length of time between receiving approval for
a housing development and submittal of an application for building permits. The time between application
approval and building permit issuance is influenced by a number of factors, none of which are directly impacted
by the Town. Factors that may impact the timing of building permit issuance include: required technical or
engineering studies; completion of construction drawings and detailed site and landscape design; securing
construction and permanent financing; and retention of a building contractor and subcontractors.
The majority of residential permits in Los Gatos are for single-family homes, with building permit issuance
generally taking eight to 14 months after Planning approvals. Hillside properties may take a few months longer
due to the need for technical and engineering studies. Among the Town’s recent multi-family developments, the
time between approvals and permit issuance has averaged 12 to18 months. In Los Gatos, most approved
projects are constructed in a reasonable time period
C.2 Local Housing Programs
State Housing Element law requires that an analysis of governmental constraints on housing production include
local government programs that regulate housing development in any way, including imposing housing cost
limitations or encouraging changes in density. Los Gatos has six local housing programs that are potential
constraints on market-rate housing production in the Town. The Below Market Price Program, Affordable Housing
Fund, Rental Dispute Resolution Program, Density Bonus Program, State Density Bonus Program, and the
Affordable Housing Overlay are discussed below.
Below Market Price (BMP) Program
The BMP Program implements the Town of Los Gatos’s inclusionary zoning ordinance, which requires that a
portion of new residential construction in Los Gatos be dedicated to affordable housing. Los Gatos’s inclusionary
zoning ordinance was adopted in 1979 as one of the first of such programs in California.
The BMP Program promotes the development of affordable housing units by providing standards and guidelines
that require the development of a certain number of quality affordable units per rental or owner development
project, based on the size of the project. The BMP Program requires the development of affordable housing
where sales and rents cannot be more than 80 percent of the current HUD Fair Market Rents (FMR) as
determined by the Santa Clara County Housing Authority. The BMP Program allows low- and moderate-income
households the opportunity to purchase low- and moderate-income housing in Los Gatos.
Appendix C. Governmental and Non-Governmental Constraints
October 2022 Appendix C C-21
The BMP Program requirements apply to all residential development projects that include five or more residential
units or parcels which involve:
New construction of ownership or rental housing units, including mixed-use developments and addition of
units to existing projects.
Subdivision of property for single family or duplex housing development.
Conversion of rental apartments to condominiums or other common interest ownership.
Conversion of non-residential use to residential use.
The intent of the BMP Program is to provide a supply of affordable housing for households who work or currently
reside in Los Gatos. However, there may be circumstances when the construction of a BMP unit is impractical.
The Town will consider, at its discretion, a fee payment in-lieu of constructing BMP units for Planned Unit
Developments with an underlying HR zone or for residential developments with five to nine units. The required in-
lieu fee of six percent of the building permit valuation for the entire project must be paid to the Town prior to
issuance of the certificate of occupancy for the market-rate units.
Additionally, the Town Council may consider off-site construction of BMP units for continuum of care facilities,
residential developments in the HR zone, or residential developments with five to nine units provided that
developers provide sufficient justification that an on-site BMP is infeasible.
The developer of “for sale” BMP units shall enter into an affordability agreement with the Town. The agreement
will ensure that the BMP units are sold to qualified buyers and will be released by the Town through the escrow
process once the BMP is sold to a qualified buyer. Because the BMP Program regulates the number of affordable
units required as part of new residential construction in Los Gatos, the program could be considered a constraint
on market-rate housing development. However, because the BMP Program requires the construction of
affordable units with every new qualifying development, the Town sees this program as an opportunity to create
and preserve affordable housing for the community. Based on a track record of successful development and
preservation of affordable housing through the BMP Program, Los Gatos does not consider the program to be a
constraint on affordable housing development; nevertheless, the Town proposes to study the BMP Program and
implement recommendations to augment and improve it in order to facilitate the construction of more units.
Affordable Housing In-Lieu Fee Fund
In-lieu fees are paid into the Town’s Affordable Housing Fund and are calculated as six percent of building permit
valuation as determined by the Building Official. As previously noted, these fees may be paid by developers of
new residential construction with five or more units but less than 10 units or new residential construction in a
Planned Unit Development with an underlying zone of HR, instead of building an affordable housing unit(s) under
the BMP Program. All residential construction over 10 units must build affordable units. Payment of in-lieu fees is
required for the approval of Hillside Planned Developments with five or more residential sites. Use of the
Affordable Housing Fund includes, but is not limited to:
Subsidizing the cost of owner-occupied units to make them affordable to low and/or moderate-income
households.
Purchasing rental units to make them affordable to low and/or moderate-income households.
Purchasing land for the future development of affordable housing.
Developing affordable housing.
Supplementing affordable housing projects developed through the Los Gatos Redevelopment Agency.
Funding administration of the program, as approved by the Town Council in its annual budget process.
HCD Draft Initial Review 2023-2031 Housing Element
C-22 Appendix C October 2022
This additional fee levied on developers may be considered a constraint on housing development; however, the
fees are paid into a fund that will be used to develop more affordable housing in Los Gatos. Given the low rate of
construction of affordable units, the Town proposes to study the In-Lieu Fund Program and implement
recommendations to augment and improve it in order to facilitate the construction of more units.
Rental Dispute Resolution Program
The Los Gatos Rental Dispute Resolution Program provides conciliation, mediation and arbitration services for
both renters and landlords in Los Gatos. The program is administered by Project Sentinel, a local non-profit
organization contracted by the Town. This program is not considered a constraint on housing development in Los
Gatos. Los Gatos renters may also contact Neighborhood Housing Services Silicon Valley for assistance.
The Town helps preserve affordable rental housing costs through the Rental Mediation and Dispute Resolution
Ordinance which applies to rental complexes of three or more units. The ordinance sets an annual limit on rent
increased to five percent unless the landlord is able to demonstrate capital or financing costs to justify a greater
increase. The Town has similar rent controls for mobile home units.
Mobile homes are an affordable housing resource in the Town of Los Gatos. They are often owned by seniors,
households on fixed incomes, and households within the lower and moderate-income categories. Mobile home
tenants are in the unique position of having made a substantial investment in a housing unit for which ground
space is rented. The Mobile Home Ordinance establishes rent increase control within mobile home parks to
ensure that a variety of housing types, including mobile homes, remain viable options to lower and moderate-
income households in the community. Rents in mobile home parks cannot be increased by more than five
percent annually unless operations and maintenance expenses significantly increased within the most recent year
in comparison to the previous year.
Density Bonus Program
The Density Bonus Program allows qualified projects to add up to 100 percent of the units provided by the
General Plan land use designation as long as these additional units are restricted to seniors, disabled persons,
very low and/or low-income households.
Over the last Housing Element cycle, the Town approved the North 40 Phase One development which included
49 very-low income and one moderate-income manager unit as density bonus units.
The Density Bonus Program has the potential to provide additional opportunities to build more, affordable units in
Los Gatos. The Town is including an Implementation Program to study the existing Density Bonus Ordinance and
recommend changes to increase the number of units constructed. The study will include an evaluation of the
implementation of the ordinance to date and actual construction of affordable housing units that utilized the
Density Bonus Program.
State Density Bonus Program
The Town adopted the State Density Bonus Program in June 2012. The program allows densities, incentives,
concessions and maximum parking standards consistent with State law. In addition, the Town modified the
program to apply to senior and physically handicap populations.
The Town has not processed a request for a State Density Bonus since the ordinance was adopted in June 2012
because the Town’s BMP Program and General Plan policies exempt affordable housing units from the calculated
density in a project. The State Density Bonus Program provides opportunities to build additional, affordable units
in Los Gatos; consequently, this program is not considered a constraint on housing development.
Affordable Housing Overlay Zone
The Town adopted the AHOZ, and it applies to one property in the Housing Sites Inventory (see Table 6-2). The
AHOZ allows densities (up to 20 units per acre on designated sites), development standards, and concessions
that will encourage affordable housing. The Housing Element includes a program to modify the affordability
Appendix C. Governmental and Non-Governmental Constraints
October 2022 Appendix C C-23
requirements in the Town Code to require a minimum of 40 percent affordable units on the Southbay AHOZ site
instead of the currently prescribed affordability levels. Affordability would be for low and very low-income
households.
Constraints on Housing for Persons with Disabilities
State law requires that the Housing Element analyze governmental constraints to housing for persons with
disabilities. How a jurisdiction defines “family” in its zoning regulations can be a potential constraint to facilitating
housing for persons with disabilities. The existing definition of “family” in the Town Code is “one or more persons
who comprise a single housekeeping unit” or “households of six or fewer persons living in a residential care
facilities small family home as defined by the California Community Care Facilities Act.”
In Los Gatos, group homes are defined by the Town Code as synonymous with small family home residential care
facilities, which are defined by the Town Code as “a residential care facility in the dwelling of a licensee in which
care or supervision is provided for six or fewer persons. Whether or not unrelated persons are living together, a
residential facility that serves six or fewer persons shall be considered a residential use of property for the
purposes of this article. In addition, the residents and operators of such a facility shall be considered a family for
the purposes of any law or zoning ordinance which relates to the residential use of property.” Group homes are
permitted by right in all residential districts, consistent with State law, and are permitted with a CUP in the Office
(O), Neighborhood Commercial (C-1), Central Business District (C-2), and Restricted Highway Commercial (CH)
zones. The Town imposes no spacing or concentration requirements on any of the allowed residential care
facilities. Large family home residential care facilities, which have a capacity for seven to 12 children or seven to
15 adults are allowed in all districts with a CUP, except where large family homes are prohibited in the RMH, LM,
and CM districts.
Generally, the Town facilitates housing for persons with disabilities by following the accessibility requirements of
the California Title 24 Multi-family Accessibility Regulations for multi-family housing of three or more units.
Housing rehabilitation assistance and accessibility improvements are provided through the Town’s Community
Services and Community Development departments.
The Town encourages accessibility improvements by requiring that specific design features be incorporated into
all new residential home projects as a condition of approval. These requirements include:
A wooden backing that is no smaller than 2 inches by 8 inches in all bathroom walls, at water closets,
showers, and bathtubs. It will be located 34 inches from the floor to the center of the backing, suitable for
the installation of grab bars.
All passage doors of at least 32 inches wide on the accessible floor.
A primary entrance that is a 36-inch-wide door, including a five-foot by five-foot level landing, no more than
one inch out of plane with the immediate interior floor level, with an 18-inch clearance.
In 2013, the Town adopted a procedure for requesting reasonable accommodation for persons with disabilities
seeking equal housing access under the Federal Fair Housing Act and the California Fair Employment and
Housing Act and in accordance with State housing law. A request for reasonable accommodation may include a
modification or exception to the standards and practices for the siting, development, and use of housing or
housing-related facilities that would eliminate regulatory barriers to accessible housing. Requests for reasonable
accommodation shall be reviewed by the Planning Director within 45 days of the request. However, if the request
is concurrent with a discretionary land use application, then the body overseeing the discretionary land use
application will also make a determination on the reasonable accommodation request. There are seven
mandatory criteria for granting a reasonable accommodation request:
The housing will be used by an individual disabled under the Federal Fair Housing Act and the California
Fair Employment and Housing Act.
The request is necessary to make specific housing available to an individual with a disability.
HCD Draft Initial Review 2023-2031 Housing Element
C-24 Appendix C October 2022
The request would not impose an undue financial or administrative burden on the Town.
The request would not require a fundamental alteration in the nature of a Town program or law, including
but not limited to land use and zoning.
There would be no impact on surrounding uses.
Due to physical attributes of the property or structures the request is necessary.
There is no alternative reasonable accommodation which may provide an equivalent level of benefit.
By adopting a formal procedure, the Town has provided an objective process with clear directions for both the
applicant and the decision makers. This is a benefit to persons with disabilities and is not a constraint on housing.
Low Barrier Navigation Centers
AB 101, adopted in 2019, requires approval 'by right' of low barrier navigation centers that meet the requirements
of State law. A “Low Barrier Navigation Center” means a Housing First, low barrier, service-enriched shelter
focused on moving people into permanent housing that provides temporary living facilities while case managers
connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing.
If the City receives applications for these uses, it will process them as required by State law. A program has been
included in the Housing Element to develop by right procedures for processing low barrier navigation centers.
Employee Housing
California Health and Safety Code Section 17021.5 (Employee Housing Act) requires jurisdictions to permit
employee housing for six or fewer employees as a single-family use. Employee housing shall not be included
within the zoning definition of a boarding house, rooming house, hotel, dormitory, or other similar term that implies
that the employee housing is a business run for profit or differs in any other way from a family dwelling.
Jurisdictions cannot impose a CUP, variance, or other zoning clearance of employee housing that serves six or
fewer employees that is not required of a family dwelling of the same type in the same zone. The Town’s Zoning
Code addresses small employee housing as a residential care facility.
Farm Employee Housing
The Town of Los Gatos does not currently have any identified farmworkers. Given the lack of farmworkers in the
community, the Town has not identified a need for specialized farmworker housing beyond overall programs for
housing affordability.
C.3 Non-Governmental Constraints to Housing
Development
Market constraints to housing development in Los Gatos are the primary non-governmental impediment to
housing production. The Town is located near Silicon Valley jobs and offers residents desirable amenities such
as an historic downtown and a school district in which student performance ranks in the top four percent of the
State.
Development Costs
In January 2022, the Santa Clara County Planning Collaborative distributed a survey to Santa Clara County
jurisdictions to better understand the fees and processing times involved in the development of single-family and
multi-family housing. Fourteen out of sixteen jurisdictions responded with locally collected data, which
Appendix C. Governmental and Non-Governmental Constraints
October 2022 Appendix C C-25
Collaborative staff used to identify major trends and produce data tables 1. Additionally, the real estate economics
consulting firm Century Urban conducted independent research on land and development costs 2. Data and
preliminary reports can be found on the Collaborative website: citiesassociation.org/constraints.
The cost of development is generally high in Santa Clara County and represents a significant constraint on the
production of both single-family and multi-family housing. According to analysis by Century Urban, average
development costs for single-family homes in the county range from $1,667,000 to $5,910,000. The cost of land
and the size of the units are the two factors causing the most variance. Multi-family development costs are also
quite high, though lower on a per unit basis compared to single family homes. Based on a survey of local
development costs, Century Urban estimates the average cost per unit for a 10-unit prototype at $726,000 to
$846,000. The average cost per unit to develop a 100-unit building ranges from $672,000 to $792,000.
Jurisdictions were asked to estimate development fees based on the following hypothetical housing types and
related detailed assumptions:
Single-Family: A new single-family house on an empty lot, 2,600 square feet or 5,000 square feet, in an
existing neighborhood with no significant grading or other complicating factors.
Small Multi-family: A project that includes 10 units in one building on one acre, where no zoning changes
are required and permitting is by-right with medium complexity.
Large Multi-family: A project that is comprised of 100 units on two acres, 80,000 total square feet, with
construction type V over a concrete podium.
Century | Urban was engaged by Baird + Driskell, hired by Association of Bay Area Governments (ABAG)
Planning Collaborative to perform research on the development costs of certain residential prototypes in Santa
Clara County. The estimates shown below are based on data and sources including but not limited to: similar
projects Century | Urban has underwritten and/or priced; specific project economics Century | Urban has
reviewed; direct conversations with developers and cost estimators; database research including CoStar, MLS,
Redfin, and title databases; online research sources including municipality and project websites; market reports
compiled by real estate sales and research organizations; and, Century | Urban’s general experience assessing
residential project feasibility in the San Francisco Bay Area.
Land Costs
The price of land also varies across the county based on site conditions and location, but land costs in Santa
Clara County are notably higher than costs in neighboring counties. Century Urban estimates the average land
price in Santa Clara County for single-family homes (based on sales within the last three years) at $1,320,000.
Land costs are lower for multi-family developments, estimated at $600,000 for small developments and
$6,000,000 for large developments, or $60,000 per unit. The data does not include properties with existing
homes or infrastructure that were redeveloped as new single-family homes, and the data for some cities is limited.
As the data collected is not comprehensive, summaries and averages may be valuable for reaching overall
conclusions about the range of land prices in the counties, but they may or may not be representative of a given
city’s average or median land price or the land price for a given parcel. The information should therefore be
reviewed noting the limited number of data points for certain cities, including Los Gatos where only 15 data points
were available. Land prices vary substantially by location, topography, site conditions, shape of the parcel,
neighboring uses, access, noise, and many other factors. In addition, completed sales are necessarily past
transactions and may not represent the current state of the market and expected future land sale prices.
1 Santa Clara County Planning Collaborative, 2022. Summary of Constraints Survey Data. citiesassociation.org/documents/constraints-
survey-data-summary-2022
2 Century Urban, 2022. San Mateo and Santa Clara Counties Development Cost & San Mateo County Unit Mix Research.
citiesassociation.org/documents/development-cost-data.
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C-26 Appendix C October 2022
There are very few vacant parcels zoned for multi-family development, and such parcels demand premium prices
because of the high demand to live in Los Gatos. Additionally, most parcels have existing improvements that
increase acquisition costs. Countywide, the land costs for multi-family development sites cost approximately
$60,000 per unit.
Hard and Soft Costs
Soft costs for housing development include the cost of architectural, engineering, accounting, legal and other
professional services, as well as the cost of obtaining permits and paying government-imposed fees. Carrying
costs and the cost of construction financing can also be considered soft costs. Century Urban’s analysis finds
that soft costs (such as impact fees and costs accumulated through permitting delays) are hard costs. Hard costs
include the costs of labor and materials.
Hard costs are very high in Santa Clara County, and both the high cost of labor and the high cost of materials
could be considered constraints on housing development. According to analysis by Century Urban, residential
hard and soft costs do not vary significantly across Santa Clara County.
Hard and soft costs contribute significantly to the overall cost of developing new housing. Hard costs comprise
over half of development costs for multi-family housing. Although hard costs are significant for single-family
production as well, they comprise a lower percentage of overall costs because of the larger role of land costs in
single-family construction. High hard costs are difficult for individual jurisdiction to mitigate.
Single-family detached ~2,660 square feet: $81 to $965 per square foot.
Single-family detached ~5,000 square feet: $714 to $1,174 per square foot.
Multi-family apartments/condominiums less than 10 units on one acre: $726,500 to $846,500 per unit.
Three- to four-story 100-unit multi-family apartment/condominiums with type V construction over a
concrete podium parking: $672,500 to $792,500 per unit.
Availability of Financing
The residential real estate market is strong in the Town of Los Gatos. Local realtors and developers have noted
that Los Gatos was affected by the home mortgage foreclosure crisis that plagued many communities in the last
fifteen years. Adjustable-rate mortgages, jumbo loans (those above $417,000), and Government-insured Federal
Housing Administration home purchase loans, in addition to all-cash offers, are common in Los Gatos. Adequate
financing through local banks is available to the Los Gatos community.
The Housing Trust of Santa Clara County offer three low-interest, down payment or closing cost loan programs
for income qualified buyers in Los Gatos. Participation in this program includes homebuyer education classes.
The County of Santa Clara Office of Affordable Housing administers three homebuyer assistance programs. The
Home Investment Partnerships Program offers down payment assistance for first-time buyers. The Mortgage
Credit Certificate Program reduces the federal income taxes of qualified borrowers purchasing qualified homes,
thus acting like a mortgage subsidy. The Down payment Assistance Program for First-time Buyers offers a
subsidy for borrowers meeting a maximum income limit and maximum purchase price limit.
The Home Mortgage Disclosure Act (HMDA) requires the reporting of data on residential loan applications, which
provides insight into the availability of financing in the community. Table C-6 summarizes HMDA data for the San
Jose, Sunnyvale, Santa Clara MSA. As shown in the table below, approximately 25 percent of all loan
applications for the lowest income group are denied.
Appendix C. Governmental and Non-Governmental Constraints
October 2022 Appendix C C-27
Table C-6 Home Purchase and Improvement Loans
Income Group
Loan
Applications
Loans Approved (Originated) Loans Denied
# % # %
>50% of MSA AMI 9,757 4,518 46.3% 2,550 26.1%
50-79% of MSA AMI 19,780 12,673 64.1% 2,683 13.6%
80-99% of MSA AMI 8,535 5,775 67.7% 852 10.0%
100-119% of MSA AMI 28,507 20,122 70.6% 2,361 8.3%
≥120 of MSA AMI 87,715 59,930 68.3% 6,951 7.9%
TOTAL 154,294 103,018 66.8% 15,397 10.0%
SOURCE: Home Mortgage Disclosure Act (HMDA), 2020
MSA – Metropolitan Statistical Area
AMI – Area Median Income
Environmental Constraints
The environmental setting affects the feasibility and cost of residential development. These areas contain
environmental constraints on development, such as steep slopes, landslide hazards, fire hazards, or flood
hazards, and therefore, much of the undeveloped land has been set aside as open space. The Town is adjacent
to other built out communities and nestled against the Santa Cruz Mountains, limiting opportunities for expansion.
The following are environmental constraints and hazards that affect, in varying degrees, existing and future
residential developments.
Urban and Wildland Fire Hazards
Wildfires are becoming an all too regular event in California, and both urban and wildland fires are a threat to the
Town of Los Gatos. Wildfires that burn exclusively in uninhabited natural areas generally pose little risk to lives or
property, although the smoke from such fires may cause respiratory problems for people nearby. Fires that occur
along the wildland-urban interface (WUI) are much more of a hazard, as they can spread into urbanized areas.
Wildfire risk is dependent on several factors, including the amount and type of vegetation in the area, weather,
and local topography. Factors such as narrow, winding roads and vegetation also slow response to fires,
increasing the risk of spread.
Based on the increased potential for devasting wildfires in Santa Clara County and the Town of Los Gatos, CAL
FIRE developed and adopted “Fire Hazard Severity Zone” maps. These maps highlight that most of the County is
located within the “high” fire severity zone, with smaller portions of the County within the “moderate” and “very
high” fire severity zones. More than half of the southern portion of the Town is in the Very High Fire Hazard
Severity Zone, with most of the areas to the south in the High or Moderate zones. The Town must therefore
strongly incorporate fire hazard mitigation into its land use decisions and requirements to protect residents and
property. Potential impacts are mitigated by policies in the 2040 General Plan Hazards and Safety Element
including the following:
Require new development, including additions to existing structures, located in or adjacent to fire hazard
areas to minimize hazards to life and property, by using fire preventive site design, access, fire-safe
landscaping, building materials, and incorporating defensible space and other fire suppression techniques.
Minimize exposure to wildland and urban fire hazards through proactive code enforcement, public
education programs, use of modern fire prevention measures, quick and safe access for emergency
equipment and evacuation, and emergency management preparation.
Restrict development in areas with inadequate water flow or emergency access.
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C-28 Appendix C October 2022
Monitor and remove excessive buildup of flammable vegetative materials on Town properties and along
critical ingress/egress routes in the WUI.
Geological and Seismic Hazards
The San Francisco Bay Area is in one of the most active seismic regions in the United States. Los Gatos is near
several active faults including the San Andreas, Hayward, and Calaveras Faults. Ground shaking is the primary
risk in an earthquake and can set off a chain reaction of secondary landslides and liquefaction, or loss of soil
strength. The region around the Lexington Reservoir also has higher risk of ground shaking should an earthquake
occur. Implementation of applicable building codes and geotechnical investigations will minimize potential loss of
life and damage to property from primary and secondary seismic hazards and siting essential structures and
services outside high-risk areas will enable faster emergency response after an earthquake.
Seismic activity within or near the Santa Clara County region has historically caused significant damage to
buildings and infrastructure in the Town of Los Gatos due to ground shaking and landslides. Five earthquakes
have affected Los Gatos in the 20th century, with the 1906 San Francisco and 1989 Loma Prieta earthquakes
having the highest magnitude. Potential impacts are mitigated by policies in the Draft 2040 General Plan Hazards
and Safety including the following:
Require new development to be sited away from high risk geologic and seismic hazard zones or, if located
in a high-risk zone, incorporate construction techniques or specialized technologies to reduce risk. Restrict
new development and redevelopment based on the levels of risk and potential severity of geologic
hazards.
Require geotechnical reports analyzing seismic hazards, grading, and construction methods.
Require that a licensed geologic/geotechnical engineer complete the Town Geologic Hazards Checklist for
all new proposed development to demonstrate that potential hazards have been identified and that
proposed structures, including grading cuts and fills, will be designed to resist potential earthquake effects.
Implement the Hillside Development Standards and Guidelines.
Flood and Inundation Hazards
Flooding can threaten life, safety, and property and can occur in a number of ways. The level in a body of water,
such as a lake or creek, can rise higher than the water body’s banks, causing it to overflow into nearby areas.
Heavy precipitation can overwhelm the ability of soil to absorb water or storm drains to carry it away, causing
water to build up on the surface. Localized flooding may also occur as a result of infrastructure failure, such as a
burst water tank or pipe. In Los Gatos, the floods that are of most concern are from heavy rainfall causing local
flooding or flash floods. Flooding puts various populations in Town at risk. A 500-year flood could affect upwards
of 28,000 people and cause $10 billion of structural damage.
Beyond localized flooding, Los Gatos faces a flood threat from dam inundation. While less common, dam
inundation is recognized in both the Town Emergency Operations Plan and Santa Clara County OAHMP. The
Lexington Reservoir as contained by the James J. Lenihan Dam is the largest concern for dam inundation.
Lexington Reservoir is the third largest reservoir in Santa Clara County storing 19,044 acre-feet of water. The
potential inundation zone in the event of failure is significant, with the potential to affect over 3,000 people and
damage over 1,000 structures. As future climate change-related impacts increase, localized flooding will become
more common due to more extreme storms increasing the potential for more frequent and severe riverine
flooding. Potential impacts are mitigated by policies in the Draft 2040 General Plan Hazards and Safety including
the following:
Require site planning and building design to mitigate identified flood and inundation hazards.
Require that new development and substantial improvements to existing structures meet Federal and
State standards when located within FEMA Flood Insurance Rate Maps (FIRMs) designated 100-year
flood zones, as designated by current FEMA mapping.
Appendix C. Governmental and Non-Governmental Constraints
October 2022 Appendix C C-29
Cooperate with the Santa Clara Valley Water District to develop and maintain additional stormwater
retention facilities in areas where they are needed or where the design capacity of existing retention
facilities cannot be restored.
Hazards and Hazardous Materials
The use, manufacture, production, transportation, storage, treatment, disposal, and clean-up of hazardous
materials and hazardous wastes present a potential threat to the health and safety of those who are using the
materials and those who could be affected by improper or accidental release or disposal. Hazardous materials
include all toxic, flammable, combustible, corrosive, poisonous, and radioactive substances that possess the
potential to bring harm to the public or the environment. The Town maintains a comprehensive list of Hazardous
Waste and Substance sites where hazardous materials are present and cleanup activities are or may be
necessary. Potential impacts are mitigated by policies in the 2040 General Plan Hazards and Safety Element.
Noise and Air Quality
Noise and air quality impacts associated with Highways 17 and 85, other high-volume arterial roadways, and the
Union Pacific Railroad line parallel to and south of Highway 85 could potentially impact housing. The California
Building Code and the Noise Element of the Los Gatos General Plan contain policies and standards that mitigate
noise impacts, and the regulations of the Bay Area Air Quality Management District require careful study and
mitigation of health risks from poor air quality. Potential impacts are mitigated by policies in the Draft 2040
General Plan Environment and Sustainability Element.
Environmental constraints to housing development are mitigated where public health, safety, and welfare can be
protected.
Site Inventory Analysis D
APPENDIX
Appendix D. Site Inventory Analysis
October 2022 Appendix D D-1
D.1 Vacant and Available Sites
The Plan Bay Area 2050 Final Blueprint 1 forecasts that the nine-county Bay Area will add 1.4 million new
households between 2015 and 2050. For the eight-year time frame covered by this Housing Element Update, the
Department of Housing and Community Development (HCD) has identified the region’s housing need as 441,176
units. The total number of housing units assigned by HCD is separated into four income categories that cover
housing types for all income levels, from very low-income households to market rate housing. This calculation,
known as the Regional Housing Needs Allocation (RHNA), is based on population projections produced by the
California Department of Finance as well as adjustments that incorporate the region’s existing housing need. The
adjustments result from recent legislation requiring HCD to apply additional adjustment factors to the baseline
growth projection from California Department of Finance, in order for the regions to get closer to healthy housing
markets. The adjustments focus on the region’s vacancy rate, level of overcrowding, and the share of cost
burdened households and seek to bring the region more in line with comparable areas. The new laws governing
the methodology for how HCD calculates the RHNA resulted in a significantly higher number of housing units for
which the Bay Area must plan compared to previous cycles.
D.2 Regional Housing Needs Allocation
In December 2021, ABAG adopted a Final Regional Housing Needs Allocation (RHNA) Methodology. For Los
Gatos, the RHNA required to be planned for the 6th cycle Housing Element Update is 1,993 units, an increase of
322 percent from the last cycle.
RHNA Summary
Los Gatos’ share of the regional housing need for the eight-year period from 2023 to 2031 is 1,993 units, which is
a 322 percent increase over the 619 units required by the 2015 to 2023 RHNA. The housing need is divided into
the four income categories of housing affordability. Table D-1 shows Los Gatos’ RHNA for the planning period
2023 through 2031 in comparison to the RHNA distributions for Santa Clara County and the Bay Area region.
With an update required every eight years by the State of California, this Housing Element covers a planning
period from January 31, 2023, to January 31, 2031 (also referred to as the “6th cycle”).
Table D-1 Los Gatos’ Regional Housing Needs Allocation: 2023–2031
Income Group
Los
Gatos
Units
Percent
Santa Clara
County
Units
Percent
Bay
Area
Units
Percent
Very Low Income (<50% of AMI) 537 26.9% 32,316 24.9% 114,442 25.9%
Low Income (50%-80% of AMI) 310 15.6% 18,607 14.4% 65,892 14.9%
Moderate Income (80%-120% of AMI) 320 16.1% 21,926 16.9% 72,712 16.5%
Above Moderate Income (>120% of AMI) 826 41.4% 56,728 43.8% 188,130 42.6%
Total 1,993 100.0% 129,577 100.0% 441,176 100.0%
Source: ABAG 2021
1 Plan Bay Area 2050 is a long-range plan charting the course for the future of the nine-county San Francisco Bay Area. It covers four key issues: the
economy, the environment, housing and transportation
D-2 Appendix D October 2022
HCD Draft Initial Review 2023-2031 Housing Element
D.3 Site Inventory
The purpose of the sites inventory is to identify and analyze specific sites that are available and suitable for
residential development during the planning period between 2023-2031 in order to accommodate Los Gatos’
assigned 1,993 housing units. The Town does not build the housing but rather creates the implementation
programs and policies to plan for where the housing can be located and how many units could be built on
potential sites.
In 2017, Senate Bill (SB) 166 was signed into law and included new “no net loss” provisions that require
communities to provide an ongoing, adequate supply of land resources for housing development during the
entirety of the housing element update planning period. These provisions mean communities face risks of non-
compliance should a housing site be developed with non-residential uses, lower residential densities, or
residential uses at affordability levels higher than anticipated by the Housing Element. To avoid noncompliance,
HCD advises communities to “buffer” their assigned RHNA numbers. The Site Inventory includes 46 sites in
order to have enough capacity for the RHNA and recommended buffer of at least 15 percent. These sites, in
addition to Accessory Dwelling Unit (ADU) Projections, Senate Bill (SB) 9 Projections, and Pipeline Projects have
a total capacity of 2,371 units (1,993 units plus a 19 percent buffer).
Overview of Selected Sites
This section provides information on the current list of potential sites that show how the Town will accommodate
the State’s required minimum of 1,993 housing units. Please note that the site numbers listed here are added
only as a way to reference the site and label it on a map. The site number is not an indication of preference or
priority. Figure D-1 shows an overview of the potential sites inventory map developed for Los Gatos’ 6th cycle
Housing Element Update. The following sites make up the Site Inventory, which is available as Appendix H.
Appendix D. Site Inventory Analysis
October 2022 Appendix D D-3
Figure D-1 Overall Area Parcel Locations
Sites Details
This section provides information on each of the sites selected for inclusion in the site inventory of vacant and
available sites.
HCD Draft Initial Review 2023-2031 Housing Element
D-4 Appendix D October 2022
Figure D-2 Downtown Area
Appendix D. Site Inventory Analysis
October 2022 Appendix D D-5
Site A-1 Park Avenue
Addresses: 50 Park Avenue and 61 Montebello Way
Number of Housing Units: 9
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.
Description: The Park Avenue Site (A-1) is located in the Downtown Area on the southwest end
of Town on a wooded parcel that is currently identified as Very High Fire Risk. The site is
triangular in shape with parking lots and South Santa Cruz Avenue on one side, Highway 17 on a
second side, and Downtown Los Gatos forming the third side. Proximity to Downtown Los Gatos
ensures that this site provides pedestrian access to urban services. This site currently is
developed with residential units and is designated Medium Density Residential. The site is zoned
R-1D and would allow nine housing units developed at a typical density of 10 du/ac.
Property Owner Interest Form Submitted: Yes.
Constraints: Very high fire hazard; existing residential dwelling units would require demolition.
Figure D-3 Park Avenue (Site A-1)
HCD Draft Initial Review 2023-2031 Housing Element
D-6 Appendix D October 2022
Site A-2 South Santa Cruz Avenue
Address: 101 South Santa Cruz Avenue
Number of Housing Units: 21
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.
Description: The South Santa Cruz Avenue Site (A-2) is located in the Downtown Area on the
southwest end of Town along South Santa Cruz Avenue on an occupied commercial parcel in
Downtown Los Gatos. The site is currently identified as Medium Density Residential. Proximity
to Downtown Los Gatos ensures that this site provides pedestrian access to urban services. This
site is designated as Central Business District and zoned C-2, which would allow 21 housing units
developed at a typical density of 26 du/ac.
Property Owner Interest Form Submitted: Yes.
Constraints: Very high fire hazard; the existing commercial use would require demolition.
Figure D-4 South Santa Cruz Avenue (Site A-2)
Appendix D. Site Inventory Analysis
October 2022 Appendix D D-7
Site A-3 University Avenue
Address: 165 Los Gatos-Saratoga Road
Number of Housing Units: 10
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.
Description: The University Avenue Site (A-3) is located in the Downtown Area at the corner of
Los Gatos-Saratoga Road and University Avenue on an occupied commercial site. Proximity to
Downtown Los Gatos ensures that this site would provide pedestrian access to urban services.
This site is designated as Central Business District and zoned C-2, which would allow 10 housing
units developed at a typical density of 26 du/ac.
Property Owner Interest Form Submitted: Yes.
Constraints: Existing commercial building would require demolition.
Figure D-5 University Avenue (Site A-3)
HCD Draft Initial Review 2023-2031 Housing Element
D-8 Appendix D October 2022
Figure D-6 Los Gatos Lodge Area
Appendix D. Site Inventory Analysis
October 2022 Appendix D D-9
Site B-1 Los Gatos Lodge
Address: 50 Los Gatos-Saratoga Road
Number of Housing Units: 317
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.
Description: The Los Gatos Lodge Site (B-1) is located in the Los Gatos Lodge Area
immediately adjacent to the interchange of Highway 9 and Highway 17, east of Downtown Los
Gatos. The site is the current location of the Los Gatos Lodge, with the Los Gatos High School
sports fields to the south, lower-density residential uses across Bella Vista Avenue to the east,
and Best Western Inn across Highway 9 on the north. This site is designated as Mixed-Use
Commercial and zoned CH:PD, which would allow 317 housing units developed at a typical
density of 36 du/ac.
Property Owner Interest Form Submitted: Yes.
Constraints: Existing commercial buildings would require demolition and removal or modification
of the existing Planned Development Overlay to accommodate residential.
Figure D-7 Los Gatos Lodge (Site B-1)
HCD Draft Initial Review 2023-2031 Housing Element
D-10 Appendix D October 2022
Figure D-8 Los Gatos Boulevard Area
Appendix D. Site Inventory Analysis
October 2022 Appendix D D-11
Site C-1 Ace Hardware
Address: 15300 Los Gatos Boulevard
Number of Housing Units: 58
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.
Description: The Ace Hardware Site (C-1) is located in the Los Gatos Boulevard Area on the
east side of Los Gatos Boulevard and north of Gateway Drive. The site is the current location of
Ace Hardware, with commercial uses to the north, south, and west, and lower-density residential
uses to the east. The site is designated as Mixed-Use Commercial and zoned C-1, which would
accommodate 58 housing units developed at a typical density of 36 du/ac.
Property Owner Interest Form Submitted: Yes.
Constraints: Existing commercial building would require demolition.
Figure D-9 Ace Hardware (Site C-1)
HCD Draft Initial Review 2023-2031 Housing Element
D-12 Appendix D October 2022
Site C-2 Los Gatos Boulevard
Address: 15349, 15367, and 15405 Los Gatos Boulevard
Number of Housing Units: 103
“By Right” + 20% Affordable: Required – Not used in previous cycle.
Description: The Los Gatos Boulevard Site (C-2) is located in the Los Gatos Boulevard Area on
the west side of Los Gatos Boulevard, and south of Garden Lane. The site is the current location
of multiple commercial uses, with commercial uses to the north, south, and east, and lower-
density residential uses to the west. The site is designated as Mixed-Use Commercial and zoned
CH, which would accommodate 103 housing units developed at a typical density of 36 du/ac.
Property Owner Interest Form Submitted: Yes.
Constraints: Existing commercial building would require demolition.
Figure D-10 Los Gatos Boulevard (Site C-2)
Appendix D. Site Inventory Analysis
October 2022 Appendix D D-13
Site C-3 Los Gatos Boulevard
Address: 15425 Los Gatos Boulevard
Number of Housing Units: 39
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.
Description: The Los Gatos Boulevard Site (C-3) is located in the Los Gatos Boulevard Area on
the west side of Los Gatos Boulevard and east of Garden Lane. The site is the current location of
office and commerical uses, with commercial uses located on all sides. The site is designated as
Mixed-Use Commercial and zoned CH, which would accommodate 39 housing units developed at
a typical density of 36 du/ac.
Property Owner Interest Form Submitted: Yes.
Constraints: Existing commercial building would require demolition.
Figure D-11 Los Gatos Boulevard (Site C-3)
HCD Draft Initial Review 2023-2031 Housing Element
D-14 Appendix D October 2022
Site C-4 Affordable Treasures
Address: 15795 Los Gatos Boulevard
Number of Housing Units: 23
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.
Description: The Affordable Treasures Site (C-4) is located in the Los Gatos Boulevard Area at
the northwest corner of Los Gatos Boulevard and Farley Lane. The site is the current location of
Affordable Treasures Party Store with commercial uses located to the north, south, and east and
lower-density residential uses located to the west. The site is designated as Mixed-Use
Commercial and zoned CH, which would accommodate 23 housing units developed at a typical
density of 36 du/ac.
Property Owner Interest Form Submitted: Yes.
Constraints: Existing commercial building would require demolition.
Figure D-12 Affordable Treasures (Site C-4)
Appendix D. Site Inventory Analysis
October 2022 Appendix D D-15
Site C-5 Los Gatos Boulevard
Address: 16203 Los Gatos Boulevard
Number of Housing Units: 28
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.
Description: The Los Gatos Boulevard Site (C-5) is located in the Los Gatos Boulevard Area at
the northwest corner of Los Gatos Boulevard and Roberts Road. The site is the current location
of NC Boardshop skateboard shop and Autobahn Los Gatos, with commercial uses located to the
north, east, and west and medium-density residential uses located to the south. The site is
designated as Mixed-Use Commercial and zoned CH, which would accommodate 28 housing
units developed at a typical density of 36 du/ac.
Property Owner Interest Form Submitted: No; however, a Conceptual Development Advisory
Committee application for a mixed-use development was submitted on November 17, 2020
pending an anticipated density increase as part of the General Plan and Housing Element
Updates.
Constraints: Existing commercial buildings would require demolition.
Figure D-13 Los Gatos Boulevard (Site C-5)
HCD Draft Initial Review 2023-2031 Housing Element
D-16 Appendix D October 2022
Site C-6 Los Gatos Boulevard
Address: 16492 Los Gatos Boulevard
Number of Housing Units: 11
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.
Description: The Los Gatos Boulevard Site (C-6) is located in the Los Gatos Boulevard Area on
the east side of Los Gatos Boulevard, north of Spencer Avenue. The site is the current location
of LG Wines and Liquors and Happy Cleaners, with commercial uses located to the north, south,
and west and low-density residential uses located to the east. The site is designated as Low
Density Residential but zoned C-1, which would accommodate 11 housing units developed at a
typical density of 18 du/ac.
Property Owner Interest Form Submitted: Yes, and the owner has submitted written interest in
changing the land use designation to Neighborhood Commercial.
Constraints: Existing commercial use would require demolition.
Figure D-14 Los Gatos Boulevard (Site C-6)
Appendix D. Site Inventory Analysis
October 2022 Appendix D D-17
Figure D-15 North Forty Area
HCD Draft Initial Review 2023-2031 Housing Element
D-18 Appendix D October 2022
Site D-1 North Forty Phase II
Address: 14859 Los Gatos Boulevard, et. al.
Number of Housing Units: 461
“By Right” + 20% Affordable: Required – Used in previous cycle.
Description: The North Forty Phase II Site (D-1) is located in the North Forty Area on the west
side of Los Gatos Boulevard, south of Burton Road. The site contains existing single-family
residences and agriculture uses. Commercial uses are located to the south and west and arterial
highways located to the north and east. The site is designated and zoned as North Forty Specific
Plan, which would accommodate 461 units at a minimum density of 30 du/ac.
Property Owner Interest Form Submitted: No; however, the property owner has been involved
in attending Housing Element Advisory Board (HEAB) meetings and submitted written public
comments regarding intent and interest in residential development on the site.
Constraints: Existing buildings would require demolition.
Figure D-16 North Forty Phase II (Site D-1)
Appendix D. Site Inventory Analysis
October 2022 Appendix D D-19
Site D-2 North Forty Phase II
Address: 16245 Burton Road
Number of Housing Units: 38
“By Right” + 20% Affordable: Required – Used in previous cycle.
Description: The North Forty Phase II Site (D-2) is located in the North Forty Area at the
terminus of Burton Road, on the west side of Los Gatos Boulevard. The site is underutilized with
a single-family residence. Commercial uses are located to the east and arterial highways located
to the north and west. The site is designated and zoned as North Forty Specific Plan, which
would accommodate 38 housing units developed at a minimum density of 30 du/ac.
Property Owner Interest Form Submitted: No; however, the parcel is located within Phase II of
the North 40 Specific Plan Area where recent significant housing development is underway.
Constraints: Existing residential building would require demolition.
Figure D-17 North Forty Phase II (Site D-2)
HCD Draft Initial Review 2023-2031 Housing Element
D-20 Appendix D October 2022
Site D-3 North Forty (Phase II)
Address: 16240 Burton Road
Number of Housing Units: Eight
“By Right” + 20% Affordable: Required – Used in previous cycle.
Description: The North Forty Phase II Site (D-3) is located in the North Forty Area along Burton
Road and adjacent to the Highway 17/Highway 85 interchange. The site contains a single-family
residence. Other North Forty Specific Plan properties surround the site. The site is designated
and zoned as North Forty Specific Plan, which would accommodate eight housing units
developed at a minimum density of 30 du/ac.
Property Owner Interest Form Submitted: No; however, the parcel is located within Phase II of
the North 40 Specific Plan Area where recent significant housing development is underway.
Constraints: Existing residential building would require demolition.
Figure D-18 North Forty Phase II (Site D-3)
Appendix D. Site Inventory Analysis
October 2022 Appendix D D-21
Site D-4 North Forty Phase II
Address: 16270 Burton Road
Number of Housing Units: 13
“By Right” + 20% Affordable: Required – Used in previous cycle.
Description: The North Forty Phase II Site (D-4) is located in the North Forty Area at the end of
Burton Road and immediately adjacent to the Highway 17/Highway 85 interchange. The site
contains a single-family residence. Other North Forty Specific Plan properties surround the site.
The site is designated and zoned as North Forty Specific Plan, which would accommodate 13
housing units developed at a minimum density of 30 du/ac.
Property Owner Interest Form Submitted: No; however, the parcel is located within Phase II of
the North 40 Specific Plan Area where recent significant housing development is underway.
Constraints: Existing residential building would require demolition.
Figure D-19 North Forty Phase II (Site D-4)
HCD Draft Initial Review 2023-2031 Housing Element
D-22 Appendix D October 2022
Site D-5 North Forty Phase II
Address: 16210 Burton Road
Number of Housing Units: 25
“By Right” + 20% Affordable: Required – Used in previous cycle.
Description: The North Forty Phase II Site (D-5) is located in the North Forty Area along Burton
Road and on the west side of Los Gatos Boulevard. The site contains single-family residences.
Other North Forty Specific Plan properties surround the site. The site is designated and zoned as
North Forty Specific Plan, which would accommodate 25 housing units developed at a minimum
density of 30 du/ac.
Property Owner Interest Form Submitted: No; however, the parcel is located within Phase II of
the North 40 Specific Plan Area where recent significant housing development is underway.
Constraints: Existing residential building would require demolition.
Figure D-20 North Forty Phase II (Site D-5)
Appendix D. Site Inventory Analysis
October 2022 Appendix D D-23
Site D-6 North Forty Phase II
Address: 14849 Los Gatos Boulevard
Number of Housing Units: 28
“By Right” + 20% Affordable: Required – Used in previous cycle.
Description: The North Forty Phase II Site (D-6) is located in the North Forty Area on the west
side of Los Gatos Boulevard, south of Burton Road. The site contains a single-family residence.
Other North Forty Specific Plan properties surround the site on the north, south, and west. East
of the site, across Los Gatos Boulevard there are commercial uses. The site is designated and
zoned as North Forty Specific Plan, which would accommodate 28 housing units developed at a
minimum density of 30 du/ac.
Property Owner Interest Form Submitted: No; however, the parcel is located within Phase II of
the North 40 Specific Plan Area where recent significant housing development is underway.
Constraints: Existing residential building would require demolition.
Figure D-21 North Forty Phase II (Site D-6)
HCD Draft Initial Review 2023-2031 Housing Element
D-24 Appendix D October 2022
Site D-7 North Forty Phase II
Address: 14823 Los Gatos Boulevard
Number of Housing Units: 11
“By Right” + 20% Affordable: Required – Used in previous cycle.
Description: The North Forty Phase II Site (D-7) is located in the North Forty Area at the
southwest corner of Burton Road and Los Gatos Boulevard. The site contains a single-family
residence. Other North Forty Specific Plan properties surround the site on the south and west.
North of the site, across Burton Road, and east of the site, across Los Gatos Boulevard, there are
commercial uses. The site is designated and zoned as North Forty Specific Plan, which would
accommodate 11 housing units developed at a minimum density of 30 du/ac.
Property Owner Interest Form Submitted: No; however, the parcel is located within Phase II of
the North 40 Specific Plan Area where recent significant housing development is underway.
Constraints: Existing residential building would require demolition.
Figure D-22 North Forty Phase II (Site D-7)
Appendix D. Site Inventory Analysis
October 2022 Appendix D D-25
Figure D-23 Lark Avenue Area
HCD Draft Initial Review 2023-2031 Housing Element
D-26 Appendix D October 2022
Site E-1 Oka Road
Address: Oka Road
Number of Housing Units: 151
“By Right” + 20% Affordable: Required – Used in previous cycle.
Description: The Oka Road Site (E-1) is located in the Lark Avenue Area on the east side of Oka
Road, north of Lark Avenue. The site contains residential and agricultural uses. Major arterial
highways are located north and east of the site, with the Los Gatos Swim and Racquet Club
immediately north. Agricultural and commercial uses are located across Oka Road. The site is
designated as Low-Density Residential and Medium-Density Residential. Parcels within the site
are zoned R-1-8 and R-M:5-12, which would allow 151 housing units developed at a typical
density of four du/ac for parcels designated as Low-Density Residential and at a typical density of
18 du/ac for parcels designated as Medium-Density Residential.
Property Owner Interest Form Submitted: No; however the property owner has submitted a
public comment to the HEAB regarding future development of the site.
Constraints: Existing buildings would require demolition.
Figure D-24 Lark Avenue (Site E-1)
Appendix D. Site Inventory Analysis
October 2022 Appendix D D-27
Site E-2 Oka Lane
Address: Oka Lane
Number of Housing Units: 26
“By Right” + 20% Affordable: Required – Used in previous cycle.
Description: The Oka Lane Site (E-2) is located in the Lark Avenue Area on the west side of Oka
Road, north of Lark Avenue. The site contains agricultural uses. Major arterial highways are
located north and east of the site, with the Bonnie View mobile home park to the north.
Agricultural and commercial uses are located across Oka Road. The site is designated as Low-
Density Residential. The site is zoned R-1:8, which would allow 26 housing units developed at a
typical density of 4 du/ac.
Property Owner Interest Form Submitted: No; however the property owner has submitted a
public comment to the HEAB regarding future development of the site.
Constraints: Proximity to adjacent highways.
Figure D-25 Oka Lane (Site E-2)
HCD Draft Initial Review 2023-2031 Housing Element
D-28 Appendix D October 2022
Site E-3 Caltrans Right of Way
Address: Caltrans Right of Way
Number of Housing Units: 88
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.
Description: The Caltrans Right of Way Site (E-3) is located in the Lark Avenue Area south and
west of the Highway 17/Highway 85 interchange. The site is currently vacant. Major arterial
highways are located north and east of the site. Commercial uses are located west of the site
across Oka Road, and the Bonnie View mobile home park is located immediately south of the
site. Should the site be annexed by the Town, it is designated as Medium-Density Residential
and zoned as R-M:5-12, which would accommodate 88 housing units developed at a typical
density of 18 du/ac.
Property Owner Interest Form Submitted: No, the Town has yet to reach out to Caltrans
regarding future development of the site.
Constraints: Consultation with Caltrans for future development.
Figure D-26 Caltrans Right of Way (Site E-3)
Appendix D. Site Inventory Analysis
October 2022 Appendix D D-29
Figure D-27 Winchester Boulevard Area
HCD Draft Initial Review 2023-2031 Housing Element
D-30 Appendix D October 2022
Site F-1 Knowles Drive
Address: 110 Knowles Drive
Number of Housing Units: 264
“By Right” + 20% Affordable: Required – Used in previous cycle.
Description: The Knowles Drive Site (F-1) is located in the Winchester Boulevard Area north and
west of the Highway 17/Highway 85 interchange. The site contains industrial uses. Los Gatos
Creek is immediately south and east of the site, with low-density residential uses located beyond.
High-density residential uses are located south and west of the site. Commercial/industrial uses
are located north of the site across Knowles Drive. The site is designated as High-Density
Residential and zoned CM:AHOZ, which would accommodate 264 housing units developed at a
typical density of 36 du/ac.
Property Owner Interest Form Submitted: No; however the site is located within the Affordable
Housing Overlay Zone.
Constraints: Existing buildings would require demolition and adjacency to the Los Gatos Creek
Trail.
Figure D-28 Knowles Drive (Site F-1)
Appendix D. Site Inventory Analysis
October 2022 Appendix D D-31
Site F-2 Winchester Boulevard
Address: 206 Knowles Drive
Number of Housing Units: 87
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.
Description: The Winchester Boulevard Site (F-2) is located in the Winchester Boulevard Area at
the northeast intersection of A Street and Knowles Drive. The site contains office uses. Multi-
family residential is located to the south and office uses are located to the north, south, and west
of the site. The site is designated as High-Density Residential and zoned CM, which would
accommodate 87 housing units developed at a typical density of 36 du/ac.
Property Owner Interest Form Submitted: No; however, the site is located immediately
adjacent to 110 Knowles Drive (Site F-1), which has an Affordable Housing Overlay Zone.
Constraints: Existing buildings would require demolition and adjacency to the Los Gatos Creek
Trail.
Figure D-29 Winchester Boulevard (Site F-2)
HCD Draft Initial Review 2023-2031 Housing Element
D-32 Appendix D October 2022
Figure D-30 Union Avenue Area
Appendix D. Site Inventory Analysis
October 2022 Appendix D D-33
Site G-1 Los Gatos-Almaden Road
Address: 440 Los Gatos Almaden Road
Number of Housing Units: 14
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.
Description: The Los Gatos-Almaden Road Site (G-1) is located in the Union Avenue Area at the
northwest corner of Leigh Avenue and Los Gatos-Almaden Road. The site contains a gas station
and commercial building. Low-density residential are located north, south, and west of the site.
Leigh High School is located east of the site across Leigh Avenue. The site is designated as
Neighborhood Commercial and zoned C-1, which would accommodate 14 housing units
developed at a typical density of 18 du/ac.
Property Owner Interest Form Submitted: Yes
Constraints: Existing gas station and commercial building would require demolition.
Figure D-31 Los Gatos-Almaden Road (Site G-1)
HCD Draft Initial Review 2023-2031 Housing Element
D-34 Appendix D October 2022
Figure D-32 Harwood Road Area
Appendix D. Site Inventory Analysis
October 2022 Appendix D D-35
Site H-1 Valero
Address: 14000 Blossom Hill Road
Number of Housing Units: 12
“By Right” + 20% Affordable: Not Required – Not used in previous cycle
Property Owner Interest Form Submitted:
Description: The Valero Site (H-1) is located in the Harwood Road Area at the southwest corner
of Blossom Hill Road and Harwood Road. The site contains a gas station. Low-density
residential are located north, south, and east of the site. Commercial uses are located
immediately west of the site. The site is designated as Neighborhood Commercial and zoned C-
1, which would accommodate 12 housing units developed at a typical density of 18 du/ac.
Property Owner Interest Form Submitted: Yes.
Constraints: Existing gas station and commercial building would require demolition.
Figure D-33 Valero (Site H-1)
HCD Draft Initial Review 2023-2031 Housing Element
D-36 Appendix D October 2022
Figure D-34 Alberto Way Area
Appendix D. Site Inventory Analysis
October 2022 Appendix D D-37
Site I-1 Alberto Way
Address: 401-409 Alberto Way
Number of Housing Units: 54
“By Right” + 20% Affordable: Not Required – Not used in previous cycle.
Description: The Alberto Way Site (I-1) is located in the Alberto Way Area, located at the
intersection of Alberto Way and Los Gatos-Saratoga Road. The site is currently vacant. Multi-
family residential are located north and east of the site. Commercial uses are located
immediately south and east of the site with Highway 17 to the west. The site is designated as
Mixed Use Commercial and zoned CH, which would accommodate 54 housing units developed at
a density of 25 du/ac based on a Conceptual Development Advisory Committee application
submitted by the property owner on September 21, 2022.
Property Owner Interest Form Submitted: Yes.
Constraints: Proximity to adjacent Highway 17 onramp.
Figure D-35 Alberto Way (Site I-1)
HCD Draft Initial Review 2023-2031 Housing Element
D-38 Appendix D October 2022
Accessory Dwelling Unit (ADUs and Junior ADUs) Projections
Address: Various Locations
Number of Housing Units: 200
“By Right” + 20% Affordable: Not required, instead a formula exists for projecting the next eight-year cycle,
along with assumptions of 30 percent very-low income units, 30 percent low income units, 30 percent moderate
income units, and 10 percent above moderate categories.
Description: Accessory dwelling units according to ADU Ordinance.
Constraints: To have HCD consider 200 units as a reasonable expectation for construction in this eight-year
cycle, the Town is reliant upon the averaging of previous ADU permit submittals.
Senate Bill 9 (SB 9) Projections
Address: Various Locations
Minimum Number of Housing Units: 96
“By Right” + 20% Affordable: Not required – Instead, formula exists for projecting the next eight-year cycle.
Description: New housing units generated from the SB 9 Ordinance.
Constraints: To have HCD consider SB 9 units as a reasonable expectation for construction in this eight-year
cycle, the Town is reliant upon the averaging of previous SB 9 permit submittals.
Pipeline Projects
Address: Addresses listed below:
105 Newell Avenue – net four units
20101 Foster Road – net one unit
North Forty Phase I – net 14 units
465 North Santa Cruz Avenue – net one unit
16195 George Street – net three units
144 Wood Road – net one unit
16100 Greenridge Terrace – net seven units
15215 Shannon Road – net four units
17200 Los Robles – net two units
400 Surmont Drive – net two units
14915 Shannon Road – net 10 units
16220 Hardwood – net two units
14926 Los Gatos Boulevard – net five units
15415 National Avenue – net one unit
45 Reservoir Road – net one unit
200 Happy Acres – net one unit
15343 Santella Court – net one units
15415 Santella Court – net one unit
15365 Santella Court – net one unit
15860 Winchester Boulevard – net 113 units
120 Oak Meadow Drive – net one unit
Number of Housing Units: 176
“By Right” + 20% Affordable: Not required
Description: New housing units generated from projects with Planning entitlements and Planning applications
currently under Town review.
Constraints: None
Appendix D. Site Inventory Analysis
October 2022 Appendix D D-39
Inventory of Vacant and Available Sites
This section provides the formal inventory of sites that the Town of Los Gatos will rely on in the 6th Housing
Element planning cycle. Per State law and Housing Policy, the Town is required to maintain “no net loss” of the
housing capacity represented by this list of parcels and the sites they comprise. To facilitate this, the inventory
presented in Appendix H has been designed with excess capacity. This allows some degree of flexibility in
decision making for individual development projects as they come forward for approval.
In short, with some limited flexibility, the Town is committed to permitting housing on each of the parcels listed in
the table below, and in so doing ensuring that the number of units listed for each parcel in the table "planned
capacity” is achieved. Should the Town approve development that is inconsistent with the parcel’s planned
capacity, it is then required as part of that approval to:
1.Find, based on quantitative evidence, that the remaining inventory of housing sites is still sufficient to
meet the Town’s 6th cycle RHNA; or
2.Identify one or more available sites with the realistic development capacity to replace the housing that
would have otherwise been developed had consistency with planned capacity been achieved.
Appendix H provides details and capacity estimates for each of the parcels that comprise the Site Inventory as
identified in the section above.
D. 4 Summary and Conclusions
The sites identified in this report are sufficient to accommodate Los Gatos’ Regional Housing Needs Allocation for
the 6th cycle planning period. This number accommodates a buffer of approximately 19 percent above RHNA,
which would equal capacity of approximately 378 additional units. These sites, in addition to Accessory Dwelling
Units Projections, Senate Bill 9 Projections, and Pipeline Projects have a total capacity of 2,371 units. This
“cushion” for capacity above the base RHNA number is highly recommended because of the State’s no-net-loss
policy, which precludes jurisdictions from approving development that results in an overall housing site deficit.
The “cushion” essentially provides a degree of flexibility for policy makers as they make development decisions.
Many of the sites identified in this report have existing uses that would need to be demolished before new housing
could be constructed.
For communities like Los Gatos that are largely built out and surrounded by other communities and
undevelopable hillsides, redevelopment and densification is the only practical solution to providing a fair share of
future housing for the San Francisco Bay Area. By its nature, such redevelopment is more costly and more time
consuming than building new units on vacant land. To offset these constraints, higher densities are proposed in
some areas. These higher densities act as a market incentive to offset the added cost and time required build
new housing on redeveloped sites. Property owner interest will be pivotal for facilitating single-family site
opportunities to add housing through construction of ADUs and use of SB 9 processes, which allow for up to four
units on a property zoned for a single house
Review of Previous Housing Element E
APPENDIX
Appendix E. Review of Previous Housing Element
October 2022 Appendix E E-1
E.1 Introduction
In order to effectively plan for the future, it is important to reflect back on the goals of the previous Housing
Element and to identify those areas where progress was made and those areas where continued effort is needed.
State Housing Element guidelines require communities to evaluate their previous Housing Element according to
the following criteria:
Effectiveness of the Element.
Progress on Implementation.
Appropriateness in Goals, Objectives, and Policies.
E.2 Effectiveness of the Element
The Town of Los Gatos’ 2015 Housing Element identified the following goals:
Expand the choice of housing opportunities for all economic segments of the community by supporting the
development of affordable housing in a variety of types and sizes, including a mixture of ownership and
rental housing.
Maintain and/or adopt appropriate land use regulations and other development tools to encourage the
development of affordable housing that is compatible with the neighborhood and the community.
Preserve existing residential opportunities, including the existing affordable housing stock.
Ensure that all persons have equal access to housing opportunities.
Retain and expand affordable housing opportunities for seniors.
Mitigate Town governmental constraints to affordable and special needs housing development.
Encourage residential construction that promotes green building and energy conservation practices.
Ensure that the Town has sufficient resources and takes appropriate measures to implement the Housing
Element.
Maintain the Town’s 2005 jobs-to-household ratio of 1.5 jobs per household.
In order to achieve these goals, the 2015 Housing Element listed a series of policies and programs. The policies
covered a range of housing concerns, including appropriate zoning for lower and moderate-income households,
assisting in developing affordable housing, removing governmental constraints, conserving the existing affordable
housing stock, preventing the conversion of affordable units to market rate, and promoting equal housing
opportunities for all persons. The policies comply with State housing law guidelines.
HCD Draft Initial Review 2023-2031 Housing Element
E-2 Appendix E October 2022
E.3 Progress on Implementation
To assess the Town’s progress on implementing the 2015 Housing Element, the following key areas were
reviewed:
Adopted Programs;
Production of Housing;
Preservation of “At Risk” Units; and
Rehabilitation of Existing Units.
Each of these areas is discussed in detail below.
Overview of Adopted Programs
Table E-1 below identifies all of the actions the Town committed to in the 2015 Housing Element. The table also
includes a description of the progress that was made during the 2015 to 2023 planning period.
Appendix E. Review of Previous Housing Element
October 2022 Appendix E E-3
Table E-1 Overview of Adopted Programs
No.
Programs
(The text provided in this column is a synopsis only; for complete
program language refer to the 2015 Housing Element)
Achievements/Effectiveness Continue/Modify/
Delete
Goal
HOU-1
Expand the choice of housing opportunities for all economic segments of the community by supporting the development of
affordable housing in a variety of types and sizes, including a mixture of ownership and rental housing. Modify
Policy
HOU-1.1 Develop and utilize all available housing funding resources in order to provide the maximum amount of affordable housing as feasible. Modify
Policy
HOU-1.2 Work with nonprofit agencies and housing developers to plan and develop a mix of affordable housing opportunities in Los Gatos. Modify
Actions
1.1 Continue to implement the Below Market Price (BMP) program and evaluate it
annually to ensure it is not a constraint to development.
BMP Program is implemented on all residential
projects that meet the criteria. Modify
1.2
Amend the Town Code to allow new deed restricted Accessory Dwelling Units
(ADU) to be affordable to lower income households on non-conforming residential
lots over 10,000 square feet and in the Hillside Residential Zone on sites that are
larger than 5 acres.
Town Code has been amended to address this. Modify
1.3
Continue to provide up to a 100 percent density bonus for developments that
include housing for elderly, handicapped, and/or very low and low-income
households.
This is an incentive that is provided to projects
that meet the criteria. Modify
1.4
Using BMP in-lieu fees, implement the proposed programs and initiatives of the
Town’s Affordable Housing Strategies to increase and preserve affordable housing,
such as purchasing affordability covenants in existing apartments.
Use of BMP in-lieu fees will be considered as
opportunities arise. Modify
1.5 Hold a periodic outreach meeting with affordable housing developers to discuss
the development of housing affordable to extremely low-income households.
The Town will consider incentives when projects
of this nature are proposed. Modify
1.6
Encourage the creation of housing that is affordable to extremely low-income
households by considering allocating a percentage of the Town’s Affordable
Housing (Below Market Price) fund to subsidize housing for extremely low-income
households.
Use of BMP in-lieu fees will be considered as
opportunities arise. Modify
1.7
The Town will rezone 13.5 acres within the North 40 Specific Plan area within three
years of Housing Element adoption at minimum a density of 20 dwelling units per
acre to facilitate affordable housing production.
Complete Delete
HCD Draft Initial Review 2023-2031 Housing Element
E-4 Appendix E October 2022
No.
Programs
(The text provided in this column is a synopsis only; for complete
program language refer to the 2015 Housing Element)
Achievements/Effectiveness Continue/Modify/
Delete
1.8
To assist the development of housing for lower income households on sites larger
than ten acres, the Town will facilitate land divisions and lot line adjustments to
result in parcels sizes between one to ten acres that facilitate multiple-family
developments affordable to lower income households in light of state, federal and
local financing programs.
Projects are given priority. Continue
Goal
HOU-2
Maintain and/or adopt appropriate land use regulations and other development tools to encourage the development of affordable
housing that is compatible with the neighborhood and the community. Modify
Policy
HOU-2.1
Continue to designate sufficient, residentially zoned land at appropriate densities to provide adequate sites to accommodate Los
Gatos’s RHNA for 2015–2023. Continue
Policy
HOU-2.2
Ensure that the Town will provide sufficient land at appropriate zoning categories to meet its RHNA for very low-, and moderate-
income households, as demonstrated in the Housing Sites Inventory analysis in Chapter 6 of the Housing Element Technical Appendix. Modify
Policy
HOU-2.3
Encourage mixed–use developments that provide affordable housing close to employment centers and/or transportation facilities,
particularly along Los Gatos Boulevard and within a ½-mile radius of the future Vasona light rail station. Modify
Policy
HOU-2.4
Demonstrate that all new residential development is sufficiently served by public services and facilities, including pedestrian and
vehicular circulation, water and wastewater services, police, fire, schools, and parks. Continue
Policy
HOU-2.5 New single-family, multi-family, and mixed-use developments shall be compatible with the character of the surrounding neighborhood. Modify
Policy
HOU-2.6 Strive to ensure that at least 30 percent of the housing stock is rental units. Modify
Policy
HOU-2.7 Create new affordable housing opportunities through acquisition using Affordable Housing Funds. Delete
Actions
2.1 Continue to implement the minimum density and affordable housing incentives
within the AHOZ
This will be implemented when a project in the
AHOZ is considered. Modify
2.2
For multiple-family residential development within the North 40 and the Southbay
AHOZ site, subject to by right development, the Town will amend the Town Code to
add by right development findings.
This has not yet been completed. Modify
2.3 The Town Code (Zoning Regulations) will be amended to clarify that Transitional
and Supportive Housing is permitted in all residential zones by right.
The Town will comply with State Law and SB 743 if
a project is proposed before the Town Code is
amended.
Delete
Appendix E. Review of Previous Housing Element
October 2022 Appendix E E-5
No.
Programs
(The text provided in this column is a synopsis only; for complete
program language refer to the 2015 Housing Element)
Achievements/Effectiveness Continue/Modify/
Delete
2.4
For multiple family residential development within the North 40 and the Southbay
AHOZ site subject to by right development, the Town will amend the Town Code to
add by right development findings.
This has not yet been completed. Modify
2.5
To ensure adequate residential capacity to accommodate the RHNA for each
income category, the Town will develop and implement an ongoing formal
evaluation procedure (project-by-project) of sites identified in the Sites Inventory.
If this situation arises the Town will comply with
this requirement. Modify
Goal
HOU-3 Preserve existing residential opportunities, including the existing affordable housing stock. Modify
Policy
HOU-3.1 Encourage the maintenance and improvement of existing housing units. Modify
Policy
HOU-3.2
Support the preservation and conservation of existing housing units that provide affordable housing opportunities for Town residents
and workers. Modify
Policy
HOU-3.3 Improve the quality of rental housing by acquisition and/or rehabilitation using Affordable Housing Fund. Modify
Policy
HOU-3.4
Preserve the affordability of units affordable to very low-, low-, and moderate-income households in Bonnie View Park, and enforce
zoning regulations regarding conversion of mobile home parks in Los Gatos. Continue
Actions
3.1 Continue to monitor affordable, multi-family housing units in the Town to ensure
that they retain their affordability status.
No units have been converted to market rate
rents. Continue
3.2
The Town will continue to implement Section 29.20.155 of the Town Code that
addresses conversions of residential use, specifically Section 29.20.155(a)(2) that
requires that any proposed conversion satisfy the housing goals and policies as set
forth in the General Plan.
This will be considered if a conversion of
residential uses is proposed. Continue
3.3
Continue to participate in the County of Santa Clara Community Development
Block Grant Joint Powers Authority so Town residents can participate in County
CDBG Housing Rehabilitation programs.
The Town still participates in these programs. Continue
3.4
Continue to support countywide programs that provide assistance with minor
home repairs and accessibility improvements for lower-income households,
including special needs households.
The Town supports these programs. Continue
Goal
HOU-4 Ensure that all persons have equal access to housing opportunities.
Policy
HOU-4.1 Support housing programs that protect individuals’ rights. Modify
HCD Draft Initial Review 2023-2031 Housing Element
E-6 Appendix E October 2022
No.
Programs
(The text provided in this column is a synopsis only; for complete
program language refer to the 2015 Housing Element)
Achievements/Effectiveness Continue/Modify/
Delete
Policy
HOU-4.2
Continue to provide assistance to service providers who support special needs households such as seniors, persons with disabilities
(including developmental challenges), and the homeless, such as Project Sentinel, Santa Clara County Housing Authority, and Santa
Clara County Office of Supportive Housing.
Modify
Policy
HOU-4.3 Continue to encourage Los Gatos households to participate in financial assistance programs provided in the County of Santa Clara. Continue
Actions
4.1 Continue to provide a guide to developments that include affordable housing units
as part of the Housing Resources Guide posted on the Town’s website.
Town Housing Resources Guide is updated when
necessary. Modify
4.2
Continue the administration of the Rental Dispute Resolution Program and
consider revisions as necessary to make the program as effective as possible in
protecting both tenants and landlords’ rights.
The Town continues to use Project Sentinel to
administer a Rental Dispute Resolution Program. Continue
4.3
Continue to allow for an emergency shelter as a by-right permitted use in the
Controlled Manufacturing (CM) zoning district, subject to appropriate development
standards.
Town Code has been amended to address this. Delete
4.4 Continue to provide support for community and non-profit organizations providing
supportive services for homeless persons in Los Gatos.
The Town continues to support organizations that
provide supportive services for homeless persons. Continue
4.5
Support the efforts of the Santa Clara County Fair Housing Consortium. Continue
to make referrals through Project Sentinel and provide updated fair housing
information on the Town’s website and at public locations through the Town, such
as the Adult Recreation Center and public kiosks.
Project Sentinel is a member of the Santa Clara
County Fair Housing Consortium and administers
the Town's Rental Dispute Resolution Program. Modify
4.6 Support the efforts of non-profit affordable housing organizations that provide
housing services in Los Gatos.
The Town has met with affordable housing
organizations regarding potential development in
Town. Modify
4.7 Continue to support the County of Santa Clara’s Continuum of Care plan, as well as
the “Housing 1000” campaign by Destination: Home.
The Town continues to support Santa Clara
County's Continuum of Care Plan. Continue
4.8 The Town shall amend the Town Code within one year of the Housing Element
adoption to be consistent with the Employee Housing Act.
The Town will comply with State Law if a project is
proposed, or an issue comes up before the Town
Code is amended. Delete
Appendix E. Review of Previous Housing Element
October 2022 Appendix E E-7
No.
Programs
(The text provided in this column is a synopsis only; for complete
program language refer to the 2015 Housing Element)
Achievements/Effectiveness Continue/Modify/
Delete
Goal
HOU-5 Retain and expand affordable housing opportunities for seniors. Modify
Policy
HOU-5.1 Promote the Town’s Housing Conservation Program to assist low-income seniors with basic home repairs and maintenance. Modify
Policy
HOU-5.2
Allow and encourage small-scale living facilities of two to six seniors that may include nursing care services that can be integrated into
existing neighborhoods as infill development. Delete
Policy
HOU-5.3
Work with existing senior lifestyle living and assisted living facilities in Los Gatos, and support the development of new senior housing
that includes continuum of care facilities within the Town. Modify
Actions
5.1 Provide regularly updated senior housing resource materials at the Adult
Recreation Center.
Senior resource materials are updated when
necessary. Modify
Goal
HOU-6 Mitigate Town governmental constraints to affordable and special needs housing development. Modify
Policy
HOU-6.1 Continue expediting the permit processing system for affordable residential development applications. Modify
Policy
HOU-6.2 Encourage universal design features in all new residential developments, to supplement the Title 24 requirements. Modify
Policy
HOU-6.3 Support the rehabilitation and modification of housing to allow accessible to people of all abilities. Modify
Policy
HOU-6.4
Support the provision of permanent, affordable, and accessible housing that allows persons with special needs to live independent
lives. For the purposes of this Housing Element “persons with special needs” include extremely low-income households, the elderly,
overcrowded and large-family households, the homeless population, those in need of emergency shelter, youth aging out of foster
care, female-headed or single-parent households, and persons with disabilities, including developmental challenges.
Continue
Policy
HOU-6.5 Support efforts to provide coordinated services for persons with special needs in the Town. Modify
Actions
6.1 Regularly review Town planning and zoning regulations and remove affordable
housing development constraints as appropriate.
The Town's Housing Element contains a number
of items that limit or remove constraints. Modify
HCD Draft Initial Review 2023-2031 Housing Element
E-8 Appendix E October 2022
No.
Programs
(The text provided in this column is a synopsis only; for complete
program language refer to the 2015 Housing Element)
Achievements/Effectiveness Continue/Modify/
Delete
6.2
Continue to enforce Section 29.10.505–530 of the Town Code to ensure equal
access to housing for persons with disabilities under the Fair Housing Act and
provide specific procedures for requesting and granting reasonable
accommodations.
This has not yet been completed. Continue
6.3 Remove constraints to housing for persons with disabilities and encourage
accessible housing in new residential developments.
Removal of constraints is considered when
necessary. Modify
6.4 Give priority to special needs housing by allowing for reduced processing time and
streamlined procedures for such appropriate zoning/land use applications.
If a project of this nature is submitted it will be
given priority. Modify
6.5 Include preferential handling of special needs populations in management plans
and regulatory agreements of funded projects.
Will be considered when plans are adopted, and
projects are funded. Modify
6.6 Explore opportunities to work with local and/or regional partners to provide rental
assistance for persons with developmental challenges.
The Town will explore opportunities with local
and/or regional partners during the Housing
Element update process. Modify
6.7
Consider development of universal design enhancements to existing design
guidelines and standards to encourage the inclusion of universal design features in
new construction. Periodically study every two years and adopt as appropriate
specific revisions or amendments to the Town’s development documents as part of
the Town Building Code.
The Town considers enhancements to universal
design and the Town requires universal design
features in new construction consistent with
Building Code requirements.
Delete
6.8
Increase awareness of universal design principles by periodically educating the
Town Council, Commissions, and Boards about universal design and making
information available to residents and builders at the Community Development
Counter.
The Town takes appropriate actions to increase
awareness of universal design principles. Delete
6.9
Continue to work with the local California Department of Developmental Services
Regional Center to continue to inform families within Los Gatos on housing and
services available for persons with developmental challenges.
The Town works with the California Department
of Developmental Services to inform citizens of
available services. Modify
6.10
On a biannual basis, continue to review, evaluate, update, and streamline as
necessary, the development process for housing developments that will guarantee
affordable units on a long-term basis for very low-, low-, and moderate-income
households.
The Town considers improvements to the
development review process for affordable
housing projects when they are proposed. Delete
Appendix E. Review of Previous Housing Element
October 2022 Appendix E E-9
No.
Programs
(The text provided in this column is a synopsis only; for complete
program language refer to the 2015 Housing Element)
Achievements/Effectiveness Continue/Modify/
Delete
Goal
HOU-7 Encourage residential construction that promotes green building and energy conservation practices. Modify
Policy
HOU-7.1
Encourage sustainable housing development throughout the Town using the Town’s voluntary green building program by continuing to
require that all residential development applications complete the Build It Green GreenPoint Rated Checklist as part of the
development application package.
Modify
Policy
HOU-7.2 Promote the construction of energy efficient new homes utilizing the Energy Star Homes Program. Delete
7.1
Continue to enforce State of California Title 24 requirements for energy
conservation. The Town enforces Title 24 requirements. Continue
Goal
HOU-8 Ensure that the Town has sufficient resources and takes appropriate measures to implement the Housing Element. Modify
Policy
HOU-8.1
All approvals of residential developments of three or more units shall include a finding that the proposed development is consistent
with the Town’s Housing Element and addresses the Town’s housing needs as identified in the Housing Element. Delete
Policy
HOU-8.2 Provide adequate management and staffing of affordable housing funds and programs. Continue
8.1
Prepare an annual housing report for the review of the Town Council including
information on progress made towards achieving new construction need,
affordable housing conserved/developed, effectiveness of existing programs and
recommendations for improvement.
The Town prepares an annual housing report. Continue
8.2 Continue to fund staff for the management and planning of housing programs and
funding for the Town.
The Town has contracted with HouseKeys to
administer our affordable housing program and
has staff that dedicate time to the Town’s
affordable housing program.
Delete
8.3 Deliver the adopted Housing Element to the San Jose Water Company and the
West Valley Sanitation District.
Town staff regularly work with the San Jose Water
Company and West Valley Sanitation District on
upgrades to their infrastructure and they are
involved in development applications and
environmental review.
Modify
HCD Draft Initial Review 2023-2031 Housing Element
E-10 Appendix E October 2022
Production of Housing
The 2015 Housing Element identified a Regional Housing Needs Allocation (RHNA) of 619 housing units in Los
Gatos between January 1, 2015, and June 30, 2023. The RHNA was divided into the following income
categories:
100 units affordable to extremely low-income households.
101 units affordable to very low-income households.
112 units affordable to low-income households.
132 units affordable to moderate-income households.
174 units affordable to above moderate-income households.
As shown in Table A5-2, during the 2015–2023 planning period, 511 new units were added to the Town’s housing
stock, achieving approximately 83 percent of the Town’s RHNA. Units affordable to moderate- and lower-income
households that were created during the planning period include density bonus senior rental units (North Forty
Phase I), an attached condominium (Union Avenue) and detached townhomes (Knowles Avenue) produced
through the BMP program and accessory dwelling units.
Table E-2 Housing Units Produced, January 1, 2015, to June 30, 2023
Affordability
New Construction
Need
Housing Units
Produced Percent Achieved
Extremely Low 100 0 *
Very Low 101 49 24.4%
Low 112 3 2.7%
Moderate 132 120 90.9%
Above Moderate 174 339 194.8%
Total 619 511 82.5%
Source: HCD Annual Progress Report Dashboard (as of August 5, 2022).
Note: This table and text will be updated prior to finalization to account for units through January 1, 2023.
Preservation of “At Risk” Units
According to the 2015 Housing Element, there were no affordable units at risk of converting to market rate within
10 years from the beginning of the 2015 to 2023 planning period.
Rehabilitation of Existing Units
The Town did not rehabilitate any housing units between 2015 and 2023.
Appendix E. Review of Previous Housing Element
October 2022 Appendix E E-11
E.4 Appropriateness of Goals, Objectives, and Policies
The goals, objectives, and policies identified in the 2015 Housing Element were appropriate for the 2015 to 2023
timeframe because they directly relate to the program requirements listed by the California Department of
Housing and Community Development.
As for new construction, the greatest progress was made in producing housing in the moderate income and
above moderate-income categories, where the Town permitted approximately 62 percent and 80 percent of the
needed units, respectively. The Town permitted only about a quarter of its needed very low-income units and less
than three percent of its low-income units. As was the case in the in prior years, the cost of housing continued to
be high in Los Gatos, making affordable housing difficult to develop in the Los Gatos market. The Town
successfully provided the governmental framework to encourage and facilitate affordable housing through a
continuation of its BMP program and enhanced Accessory Dwelling Unit Ordinance.
E.5 Summary
Like many communities, the Town of Los Gatos experienced less development than expected in its 2015–2023
planning period. Of the 630 units it identified in its table of quantified housing objectives (Table H-3 on page 47 of
the 2015 Housing Element), the Town permitted 511 units (approximately 81 percent), most of them for above
moderate-income households.
Nonetheless, the goals, objectives, policies, and actions in the 2015 to 2023 Housing Element complied with
State housing law that was in effect at the time and provided proper guidance for housing development in the
Town. In the 2023 to 2031 Housing Element update, objectives for each of the goals will be modified as
appropriate to more specifically respond to the current housing environment in Los Gatos. Policies will also be
modified as needed to respond to current Housing Element law and existing and anticipated residential
development conditions.
List of Organizations Contacted F
APPENDIX
Appendix F. List of Organizations Contacted
October 2022 Appendix F F-1
F.1 List of Organizations Contacted
1 Native American Heritage Commission Tribal Consultation List Santa Clara County
07/22/2020
1 Amah Mutsun Tribal Band
Valentin Lopez, Chairperson
P.O. Box 5272
Galt, CA 95632
Phone number (916) 743-5833
vlopez@amahmutsun.org
2 Amah Mutsun Tribal Band of Mission San Juan Bautista
Irenne Zwierlein, Chairperson
789 Canada Road
Woodside, CA 94062
Phone: (650) 851-7489
Fax: (650) 332-1526
amahmutsuntribal@gmail.com
3 Indian Canyon Mutsun Band of Costanoan
Ann Marie Sayers, Chairperson
P.O. Box 28
Hollister, CA 95024
Phone number (831) 637-4238
ams@indiancanyon.org
4 Muwekma Ohlone Indian Tribe of the SF Bay Area
Charlene Mijmeh, Chairperson
20885 Redwood Road, Suite 232
Castro Valley, CA 94546
Phone: (408) 464-2892
cnijmeh@muwekma.org
5 Muwekma Ohlone Indian Tribe of the SF Bay Area
Monica Arellano
20885 Redwood Road, Suite 232
Castro Valley, CA 94546
marellano@muwekma.org
6 North Valley Yokuts Tribe
Timothy Perez, MLD Contact
P.O. Box 717
Linden, CA 95236
Phone: (209) 662-2788
huskanam@gmail.com
HCD Draft Initial Review 2023-2031 Housing Element
F-2 Appendix F October 2022
7 North Valley Yokuts Tribe
Katherine Perez, Chairperson
P.O. Box 717
Linden, CA 95236
Phone: (209) 887-3415
canutes@verizon.net
8 The Ohlone Indian Tribe
Andres Galvan
P.O. Box 3388
Fremont, CA 94539
Phone: (510) 882-0527
Fax: (510) 687-9393
chochenyo@aol.com
9 The Confederated Villages of Lisjan
Corrina Gould, Chairperson
10926 Edes Avenue
Oakland, CA 94603
Phone: (510) 882-027
cvltribe@gmail.com
2 Additional List of Contacted Organizations
1
2
3
Santa Clara County Social Services Agency
353 West Julian Street
San Jose, CA 95110
clientcomments@ssa.sccgov.org
(408)755-7100
Pancho Guevara
Executive Director
Sacred Heart Community Service
1381 South First Street
San Jose, CA 95110
(408) 278-2160
United Way Bay Area
1400 Parkmoor Avenue San Jose, Ca 95126
(408) 345-4300
Appendix F. List of Organizations Contacted
October 2022 Appendix F F-3
Engage Los Gatos Housing 3
HCD Draft Initial Review 2023-2031 Housing Element
F-4 Appendix F October 2022
Appendix F. List of Organizations Contacted
October 2022 Appendix F F-5
HCD Draft Initial Review 2023-2031 Housing Element
F-6 Appendix F October 2022
Appendix F. List of Organizations Contacted
October 2022 Appendix F F-7
HCD Draft Initial Review 2023-2031 Housing Element
F-8 Appendix F October 2022
This Page Intentionally Left Blank
AFFH Segregation Report Los Gatos G
APPENDIX
1
AFFH SEGREGATION REPORT: LOS
GATOS
UC Merced Urban Policy Lab and ABAG/MTC Staff
Version of Record: March 06, 15:57:57
2
0.1 Table of content
0.1 Table of content .................................................................................................... 2
0.2 List of figures ....................................................................................................... 3
0.3 List of tables ........................................................................................................ 3
1 Introduction .............................................................................................................. 4
1.1 Purpose of this Report ............................................................................................. 4
1.2 Defining Segregation ............................................................................................... 5
1.3 Segregation Patterns in the Bay Area ........................................................................... 5
1.4 Segregation and Land Use ......................................................................................... 6
2 Racial Segregation in Town of Los Gatos ........................................................................... 8
2.1 Neighborhood Level Racial Segregation (within Town of Los Gatos) ...................................... 8
2.2 Regional Racial Segregation (between Los Gatos and other jurisdictions) .............................. 16
3 Income Segregation in Town of Los Gatos ........................................................................ 21
3.1 Neighborhood Level Income Segregation (within Los Gatos) ............................................... 21
3.2 Regional Income Segregation (between Los Gatos and other jurisdictions) ............................. 27
4 Appendix 1: Summary of Findings ................................................................................. 31
4.1 Segregation in Town of Los Gatos .............................................................................. 31
4.2 Segregation Between Town of Los Gatos and Other jurisdictions in the Bay Area Region ............ 31
5 Appendix 2: Segregation Data ...................................................................................... 33
6 References .............................................................................................................. 37
3
0.2 List of figures
Figure 1: Racial Dot Map of Los Gatos (2020) .............................................................................. 9
Figure 2: Racial Isolation Index Values for Los Gatos Compared to Other Bay Area Jurisdictions (2020) ....... 11
Figure 3: Racial Dissimilarity Index Values for Los Gatos Compared to Other Bay Area Jurisdictions (2020) .. 14
Figure 4: Theil’s H Index Values for Racial Segregation in Los Gatos Compared to Other Bay Area Jurisdictions
(2020) ........................................................................................................................... 15
Figure 5: Racial Dot Map of Los Gatos and Surrounding Areas (2020) ................................................ 16
Figure 6: Racial Demographics of Los Gatos Compared to All Bay Area Jurisdictions (2020) ..................... 18
Figure 7: Comparing the Share of People of Color in Los Gatos and Vicinity to the Bay Area (2020) ........... 19
Figure 8: Income Dot Map of Los Gatos (2015) ........................................................................... 22
Figure 9: Income Group Isolation Index Values for Los Gatos Compared to Other Bay Area Jurisdictions (2015)
................................................................................................................................... 24
Figure 10: Income Group Dissimilarity Index Values for Los Gatos Compared to Other Bay Area Jurisdictions
(2015) ........................................................................................................................... 26
Figure 11: Income Group Theil’s H Index Values for Los Gatos Compared to Other Bay Area Jurisdictions
(2015) ........................................................................................................................... 27
Figure 12: Income Dot Map of Los Gatos and Surrounding Areas (2015) .............................................. 28
Figure 13: Income Demographics of Los Gatos Compared to Other Bay Area Jurisdictions (2015) ............... 29
0.3 List of tables
Table 1: Racial Isolation Index Values for Segregation within Los Gatos ............................................. 10
Table 2: Racial Dissimilarity Index Values for Segregation within Los Gatos ........................................ 13
Table 3: Theil’s H Index Values for Racial Segregation within Los Gatos ............................................ 15
Table 4: Population by Racial Group, Los Gatos and the Region ...................................................... 17
Table 5: Regional Racial Segregation Measures .......................................................................... 20
Table 6: Income Group Isolation Index Values for Segregation within Los Gatos ................................... 23
Table 7: Income Group Dissimilarity Index Values for Segregation within Los Gatos .............................. 25
Table 8: Theil’s H Index Values for Income Segregation within Los Gatos ........................................... 26
Table 9: Population by Income Group, Los Gatos and the Region ..................................................... 28
Table 10: Regional Income Segregation Measures ....................................................................... 30
Table 11: Neighborhood Racial Segregation Levels in Los Gatos ...................................................... 33
Table 12: Neighborhood Income Segregation Levels in Los Gatos ..................................................... 34
Table 13: Regional Racial Segregation Measures ......................................................................... 35
Table 14: Regional Income Segregation Measures ....................................................................... 35
Table 15: Population by Racial Group, Los Gatos and the Region ..................................................... 36
Table 16: Population by Income Group, Los Gatos and the Region ................................................... 36
4
1 INTRODUCTION
The requirement to Affirmatively Further Fair Housing (AFFH) is derived from The Fair Housing Act of
1968, which prohibited discrimination concerning the sale, rental, and financing of housing based on
race, color, religion, national origin, or sex—and was later amended to include familial status and
disability.1 The 2015 U.S. Department of Housing and Urban Development (HUD) Rule to Affirmatively
Further Fair Housing and California Assembly Bill 686 (2018) mandate that each jurisdiction takes
meaningful action to address significant disparities in housing needs and access to opportunity.23 AB
686 requires that jurisdictions incorporate AFFH into their Housing Elements, which includes inclusive
community participation, an assessment of fair hous ing, a site inventory reflective of AFFH, and the
development of goals, policies, and programs to meaningfully address local fair housing issues. ABAG
and UC Merced have prepared this report to assist Bay Area jurisdictions with the Assessment of Fair
Housing section of the Housing Element.
Assessment of Fair Housing Components
The Assessment of Fair Housing includes five components, which are
discussed in detail on pages 22-43 of HCD’s AFFH Guidance Memo:
A: Summary of fair housing enforcement and outreach capacity
B: Integration and segregation patterns, and trends related to people with
protected characteristics
C: Racially or ethnically concentrated areas of poverty
D: Disparities in access to opportunity
E: Disproportionate housing needs, including displacement risk
1.1 Purpose of this Report
This report describes racial and income segregation in Bay Area jurisdictions. Local jurisdiction staff
can use the information in this report to help fulfill a portion of the second component of the
Assessment of Fair Housing, which requires analysis of integration and segregation patterns and trends
related to people with protected characteristics and lower incomes. Jurisdictions will still need to
perform a similar analysis for familial status and populations with disability.
This report provides segregation measures for both the local jurisdiction and the region using several
indices. For segregation between neighborhoods within a city (intra-city segregation), this report
includes isolation indices, dissimilarity indices, and Theil’s-H index. The isolation index measures
1 https://www.justice.gov/crt/fair-housing-act-2
2 HCD AFFH Guidance Memo
3 The 2015 HUD rule was reversed in 2020 and partially reinstated in 2021.
5
segregation for a single group, while the dissimilarity index measures segregation between two groups.
The Theil’s H-Index can be used to measure segregation between all racial or income groups across the
city at once. HCD’s AFFH guidelines require local jurisdictions to include isolation indices and
dissimilarity indices in the Housing Element. Theil’s H index is provided in addition to these required
measures. For segregation between cities within the Bay Area (inter-city segregation), this report
includes dissimilarity indices at the regional level as required by HCD’s AFFH guidelines. HCD’s AFFH
guidelines also require jurisdictions to compare conditions at the local level to the rest of the region;
and this report presents the difference in the racial and income composition of a jurisdiction relative
to the region as a whole to satisfy the comparison requirement.
1.2 Defining Segregation
Segregation is the separation of different demographic groups into different geographic locations or
communities, meaning that groups are unevenly distributed across geographic space. This report
examines two spatial forms of segregation: neighborhood level segregation within a local jurisdiction
and city level segregation between jurisdictions in the Bay Area.
Neighborhood level segregation (within a jurisdiction, or intra-city): Segregation of race and income
groups can occur from neighborhood to neighborhood within a city. For example, if a local jurisdiction
has a population that is 20% Latinx, but some neighborhoods are 80% Latinx while others have nearly no
Latinx residents, that jurisdiction would have segregated neighborhoods.
City level segregation (between jurisdictions in a region, or inter-city): Race and income divides also
occur between jurisdictions in a region. A region could be very diverse with equal numbers of white,
Asian, Black, and Latinx residents, but the region could also be highly segregated with each city
comprised solely of one racial group.
There are many factors that have contributed to the generation and maintenance of segregation.
Historically, racial segregation stemmed from explicit discrimination against people of color, such as
restrictive covenants, redlining, and discrimination in mortgage lending. This history includes many
overtly discriminatory policies made by federal, state, and local governments (Rothstein 2017).
Segregation patterns are also affected by policies that appear race-neutral, such as land use decisions
and the regulation of housing development.
Segregation has resulted in vastly unequal access to public goods such as quality schools, neighborhood
services and amenities, parks and playgrounds, clean air and water, and public safety (Trounstine
2015). This generational lack of access for many communities, particularly people of color and lower
income residents, has often resulted in poor life outcomes, including lower educational attainment,
higher morbidity rates, and higher mortality rates (Chetty and Hendren 2018, Ananat 2011, Burch 2014,
Cutler and Glaeser 1997, Sampson 2012, Sharkey 2013).
1.3 Segregation Patterns in the Bay Area
Across the San Francisco Bay Area, white residents and above moderate-income residents are
significantly more segregated from other racial and income groups (see Appendix 2). The highest levels
of racial segregation occur between the Black and white populations. The analysis completed for this
report indicates that the amount of racial segregation both within Bay Area cities and across
jurisdictions in the region has decreased since the year 2000. This finding is consistent with recent
research from the Othering and Belonging Institute at UC Berkeley, which concluded that “[a]lthough 7
6
of the 9 Bay Area counties were more segregated in 2020 than they were in either 1980 or 1990, racial
residential segregation in the region appears to have peaked around the year 2000 and has generally
declined since.”4 However, compared to cities in other parts of California, Bay Area jurisdictions have
more neighborhood level segregation between residents from different racial groups. Additionally,
there is also more racial segregation between Bay Area cities compared to other regions in the state.
1.4 Segregation and Land Use
It is difficult to address segregation patterns without an analysis of both historical and existing land use
policies that impact segregation patterns. Land use regulations influence what kind of housing is built
in a city or neighborhood (Lens and Monkkonen 2016, Pendall 2000). These land use regulations in turn
impact demographics: they can be used to affect the number of houses in a community, the number of
people who live in the community, the wealth of the people who live in the community, and where
within the community they reside (Trounstine 2018). Given disparities in wealth by race and ethnicity,
the ability to afford housing in different neighborhoods, as influenced by land use regulations, is highly
differentiated across racial and ethnic groups (Bayer, McMillan, and Reuben 2004).5 ABAG/MTC plans to
issue a separate report detailing the existing land use policies that influence segregation patterns in
the Bay Area.
4 For more information, see https://belonging.berkeley.edu/most-segregated-cities-bay-area-2020.
5 Using a household-weighted median of Bay Area county median household incomes, regional values were $61,050
for Black residents, $122,174 for Asian/Pacific Islander residents, $121,794 for white residents, and $76,306 for
Latinx residents. For the source data, see U.S. Census Bureau, American Community Survey 5-Year Data (2015-
2019), Table B19013B, Table B19013D, B19013H, and B19013I.
7
Definition of Terms - Geographies
Neighborhood: In this report, “neighborhoods” are approximated by
tracts.6 Tracts are statistical geographic units defined by the U.S. Census
Bureau for the purposes of disseminating data. In the Bay Area, tracts
contain on average 4,500 residents. Nearly all Bay Area jurisdictions
contain at least two census tracts, with larger jurisdictions containing
dozens of tracts.
Jurisdiction: Jurisdiction is used to refer to the 109 cities, towns, and
unincorporated county areas that are members of ABAG. Though not all
ABAG jurisdictions are cities, this report also uses the term “city”
interchangeably with “jurisdiction” in some places.
Region: The region is the nine-county San Francisco Bay Area, which is
comprised of Alameda County, Contra Costa County, Marin County,
Napa County, San Francisco County, San Mateo County, Santa Clara
County, Solano County, and Sonoma County.
6 Throughout this report, neighborhood level segregation measures are calculated using census tract data.
However, the racial dot maps in Figure 1 and Figure 5 use data from census blocks, while the income group dot
maps in Figure 8 and Figure 12 use data from census block groups. These maps use data derived from a smaller
geographic scale to better show spatial differences in where different groups live. Census block groups are
subdivisions of census tracts, and census blocks are subdivisions of block groups. In the Bay Area, block groups
contain on average 1,500 people, while census blocks contain on average 95 people.
8
2 RACIAL SEGREGATION IN TOWN OF LOS GATOS
Definition of Terms - Racial/Ethnic Groups
The U.S. Census Bureau classifies racial groups (e.g. white or Black/African
American) separately from Hispanic/Latino ethnicity.7 This report combines
U.S. Census Bureau definitions for race and ethnicity into the following
racial groups:
White: Non-Hispanic white
Latinx: Hispanic or Latino of any race8
Black: Non-Hispanic Black/African American
Asian/Pacific Islander: Non-Hispanic Asian or Non-Hispanic Pacific Islander
People of Color: All who are not non-Hispanic white (including people
who identify as “some other race” or “two or more races”)9
2.1 Neighborhood Level Racial Segregation (within Town of Los Gatos)
Racial dot maps are useful for visualizing how multiple racial groups are distributed within a specific
geography. The racial dot map of Los Gatos in Figure 1 below offers a visual representation of the
spatial distribution of racial groups within the jurisdiction. Generally, when the distribution of dots
does not suggest patterns or clustering, segregation measures tend to be lower. Conversely, when
clusters of certain groups are apparent on a racial dot map, segregation measures may be higher.
7 More information about the Census Bureau’s definitions of racial groups is available here:
https://www.census.gov/topics/population/race/about.html.
8 The term Hispanic has historically been used to describe people from numerous Central American, South
American, and Caribbean countries. In recent years, the term Latino or Latinx has become preferred. This report
generally uses Latinx to refer to this racial/ethnic group.
9 Given the uncertainty in the data for population size estimates for racial and ethnic groups not included in the
Latinx, Black, or Asian/Pacific Islander categories, this report only analyzes these racial groups in the aggregate
People of Color category.
9
Figure 1: Racial Dot Map of Los Gatos (2020)
Universe: Population. Source: U.S. Census Bureau, 2020 Census State Redistricting Data (Public Law 94-171) Summary File, 2020
Census of Population and Housing, Table P002.
Note: The plot shows the racial distribution at the census block level for Town of Los Gatos and vicinity. Dots in each census
block are randomly placed and should not be construed as actual placement of people.
There are many ways to quantitatively measure segregation. Each measure captures a different aspect
of the ways in which groups are divided within a community. One way to measure segregation is by
using an isolation index:
• The isolation index compares each neighborhood’s composition to the jurisdiction’s
demographics as a whole.
• This index ranges from 0 to 1. Higher values indicate that a particular group is more isolated
from other groups.
• Isolation indices indicate the potential for contact between different groups. The index can be
interpreted as the experience of the average member of that group. For example, if the
isolation index is .65 for Latinx residents in a city , then the average Latinx resident in that city
lives in a neighborhood that is 65% Latinx.
Within Town of Los Gatos the most isolated racial group is white residents. Los Gatos’s isolation index
of 0.663 for white residents means that the average white resident lives in a neighborhood that is
66.3% white. Other racial groups are less isolated, meaning they may be more likely to encounter other
racial groups in their neighborhoods. The isolation index values for all racial groups in Los Gatos for the
years 2000, 2010, and 2020 can be found in Table 1 below. Among all racial groups in this jurisdiction,
the white population’s isolation index has changed the most over time, becoming less segregated from
other racial groups between 2000 and 2020.
10
The “Bay Area Average” column in this table provides the average isolation index value across Bay Area
jurisdictions for different racial groups in 2020.10 The data in this column can be used as a comparison
to provide context for the levels of segregation experienced by racial groups in this jurisdiction. For
example, Table 1 indicates the average isolation index value for white residents across all Bay Area
jurisdictions is 0.491, meaning that in the average Bay Area jurisdiction a white resident lives in a
neighborhood that is 49.1% white.
Table 1: Racial Isolation Index Values for Segregation within Los Gatos
Los Gatos Bay Area
Average
Race 2000 2010 2020 2020
Asian/Pacific Islander 0.079 0.118 0.197 0.245
Black/African American 0.009 0.012 0.022 0.053
Latinx 0.059 0.082 0.104 0.251
White 0.838 0.774 0.663 0.491
Universe: Population.
Source: IPUMS National Historical Geographic Information System (NHGIS). U.S. Census Bureau, 2020 Census State Redistricting
Data (Public Law 94-171) Summary File, 2020 Census of Population and Housing, Table P002. Data from 2010 is from U.S. Census
Bureau, Census 2010, Table P4. Data for 2000 is standardized to 2010 census tract geographies and is from U.S. Census Bureau,
Census 2000, Table P004.
Figure 2 below shows how racial isolation index values in Los Gatos compare to values in other Bay Area
jurisdictions. In this chart, each dot represents a Bay Area jurisdiction. For each racial group, the
spread of dots represents the range of isolation index values among Bay Area jurisdictions.
Additionally, the black line within each racial group notes the isolation index value for that group in
Town of Los Gatos, and each dashed red line represents the Bay Area average for the isolation index
for that group. Local staff can use this chart to contextualize how segregation levels for racial groups
in their jurisdiction compare to other jurisdictions in the region.
10 This average only includes the 104 jurisdictions that have more than one census tract, which is true for all
comparisons of Bay Area jurisdictions’ segregation measures in this report. The segregation measures in this report
are calculated by comparing the demographics of a jurisdiction’s census tracts to the jurisdiction’s demographics,
and such calculations cannot be made for the five jurisdictions with only one census tract (Brisbane, Calistoga,
Portola Valley, Rio Vista, and Yountville).
11
Figure 2: Racial Isolation Index Values for Los Gatos Compared to Other Bay Area
Jurisdictions (2020)
Universe: Bay Area Jurisdictions.
Source: IPUMS National Historical Geographic Information System (NHGIS). U.S. Census Bureau, 2020 Census State Redistricting
Data (Public Law 94-171) Summary File, 2020 Census of Population and Housing, Table P002.
Another way to measure segregation is by using a dissimilarity index:
• This index measures how evenly any two groups are distributed across neighborhoods relative
to their representation in a city overall. The dissimilarity index at the jurisdiction level can be
interpreted as the share of one group that would have to move neighborhoods to create perfect
integration for these two groups.
• The dissimilarity index ranges from 0 to 1. Higher values indicate that groups are more
unevenly distributed (e.g. they tend to live in different neighborhoods).
12
Dissimilarity Index Guidance for Cities with Small Racial Group Populations
The analysis conducted for this report suggests that dissimilarity index
values are unreliable for a population group if that group represents
approximately less than 5% of the jurisdiction’s total population.
HCD’s AFFH guidance requires the Housing Element to include the
dissimilarity index values for racial groups, but also offers flexibility in
emphasizing the importance of various measures. ABAG/MTC
recommends that when cities have population groups that are less than
5% of the jurisdiction’s population (see Table 4), jurisdiction staff use the
isolation index or Thiel’s H-Index to gain a more accurate understanding
of their jurisdiction’s neighborhood-level segregation patterns (intra-city
segregation).
If a jurisdiction has a very small population of a racial group, this indicates
that segregation between the jurisdiction and the region (inter-city
segregation) is likely to be an important feature of the jurisdiction’s
segregation patterns.
In Town of Los Gatos, the Black/African American group is 0.9 percent of
the population - so staff should be aware of this small population size
when evaluating dissimilarity index values involving this group.
Table 2 below provides the dissimilarity index values indicating the level of segregation in Los Gatos
between white residents and residents who are Black, Latinx, or Asian/Pacific Islander. The table also
provides the dissimilarity index between white residents and all residents of color in the jurisdiction,
and all dissimilarity index values are shown across three time periods (2000, 2010, and 2020).
In Los Gatos the highest segregation is between Black and white residents (see Table 2). Los Gatos’s
Black /white dissimilarity index of 0.369 means that 36.9% of Black (or white) residents would need to
move to a different neighborhood to create perfect integration between Black residents and white
residents. However, local jurisdiction staff should note that this dissimilarity index value is not a
reliable data point due to small population size. See callout box above for more information.
The “Bay Area Average” column in this table provides the average dissimilarity index values for these
racial group pairings across Bay Area jurisdictions in 2020. The data in this column can be used as a
comparison to provide context for the levels of segregation between communities of color are from
white residents in this jurisdiction.
13
For example, Table 2 indicates that the average Latinx/white dissimilarity index for a Bay Area
jurisdiction is 0.207, so on average 20.7% of Latinx (or white residents) in a Bay Area jurisdiction would
need to move to a different neighborhood within the jurisdiction to create perfect integration between
Latinx and white residents in that jurisdiction.
Table 2: Racial Dissimilarity Index Values for Segregation within Los Gatos
Los Gatos Bay Area
Average
Race 2000 2010 2020 2020
Asian/Pacific Islander vs. White 0.106 0.145 0.182 0.185
Black/African American vs. White 0.223* 0.246* 0.369* 0.244
Latinx vs. White 0.119 0.143 0.179 0.207
People of Color vs. White 0.093 0.124 0.157 0.168
Universe: Population.
Source: IPUMS National Historical Geographic Information System (NHGIS). U.S. Census Bureau, 2020 Census State Redistricting
Data (Public Law 94-171) Summary File, 2020 Census of Population and Housing, Table P002. Data from 2010 is from U.S. Census
Bureau, Census 2010, Table P4. Data for 2000 is standardized to 2010 census tract geographies and is from U.S. Census Bureau,
Census 2000, Table P004.
Note: If a number is marked with an asterisk (*), it indicates that the index is based on a racial group making up less than 5
percent of the jurisdiction population, leading to unreliable numbers.
Figure 3 below shows how dissimilarity index values in Town of Los Gatos compare to values in other
Bay Area jurisdictions. In this chart, each dot represents a Bay Area jurisdiction. For each racial group
pairing, the spread of dots represents the range of dissimilarity index values among Bay Area
jurisdictions. Additionally, the black line within each racial group pairing notes the dissimilarity index
value in Los Gatos, and each dashed red line represents the Bay Area average for the dissimilarity index
for that pairing. Similar to Figure 2, local staff can use this chart to contextualize how segregation
levels between white residents and communities of color in their jurisdiction compare to the rest of
the region. However, staff should be mindful of whether a racial group in their jurisdiction has a small
population (approximately less than 5% of the jurisdiction’s population), as the dissimilarity index value
is less reliable for small populations.
14
Figure 3: Racial Dissimilarity Index Values for Los Gatos Compared to Other Bay Area
Jurisdictions (2020)
Universe: Bay Area Jurisdictions.
Source: IPUMS National Historical Geographic Information System (NHGIS). U.S. Census Bureau, 2020 Census State Redistricting
Data (Public Law 94-171) Summary File, 2020 Census of Population and Housing, Table P002.
Note: The analysis conducted for this report suggests that dissimilarity index values are unreliable for a population group if
that group represents approximately less than 5% of the jurisdiction’s total population. ABAG/MTC recommends that when
cities have population groups that are less than 5% of the jurisdiction’s population (see Table 4), jurisdiction staff could focus
on the isolation index or Thiel’s H-Index to gain a more accurate understanding of neighborhood-level racial segregation in their
jurisdiction.
The Theil’s H Index can be used to measure segregation between all groups within a jurisdiction:
• This index measures how diverse each neighborhood is compared to the diversity of the whole
city. Neighborhoods are weighted by their size, so that larger neighborhoods play a more
significant role in determining the total measure of segregation.
• The index ranges from 0 to 1. A Theil’s H Index value of 0 would mean all neighborhoods within
a city have the same demographics as the whole city. A value of 1 would mean each group lives
exclusively in their own, separate neighborhood.
• For jurisdictions with a high degree of diversity (multiple racial groups comprise more than 10%
of the population), Theil’s H offers the clearest summary of overall segregation.
The Theil’s H Index values for neighborhood racial segregation in Los Gatos for the years 2000, 2010,
and 2020 can be found in Table 3 below. The “Bay Area Average” column in the table provides the
average Theil’s H Index across Bay Area jurisdictions in 2020. Between 2010 and 2020, the Theil’s H
Index for racial segregation in Los Gatos increased, suggesting that there is now more neighborhood
level racial segregation within the jurisdiction. In 2020, the Theil’s H Index for racial segregation in Los
15
Gatos was lower than the average value for Bay Area jurisdictions, indicating that neighborhood level
racial segregation in Los Gatos is less than in the average Bay Area city.
Table 3: Theil’s H Index Values for Racial Segregation within Los Gatos
Los Gatos Bay Area
Average
Index 2000 2010 2020 2020
Theil's H Multi-racial 0.011 0.015 0.023 0.042
Universe: Population.
Source: IPUMS National Historical Geographic Information System (NHGIS). U.S. Census Bureau, 2020 Census State Redistricting
Data (Public Law 94-171) Summary File, 2020 Census of Population and Housing, Table P002. Data from 2010 is from U.S. Census
Bureau, Census 2010, Table P4. Data for 2000 is standardized to 2010 census tract geographies and is from U.S. Census Bureau,
Census 2000, Table P004.
Figure 4 below shows how Theil’s H index values for racial segregation in Los Gatos compare to values
in other Bay Area jurisdictions in 2020. In this chart, each dot represents a Bay Area jurisdiction.
Additionally, the black line notes the Theil’s H index value for neighborhood racial segregation in Los
Gatos, and the dashed red line represents the average Theil’s H index value across Bay Area
jurisdictions. Local staff can use this chart to compare how neighborhood racial segregation levels in
their jurisdiction compare to other jurisdictions in the region.
Figure 4: Theil’s H Index Values for Racial Segregation in Los Gatos Compared to
Other Bay Area Jurisdictions (2020)
Universe: Bay Area Jurisdictions.
Source: IPUMS National Historical Geographic Information System (NHGIS). U.S. Census Bureau, 2020 Census State Redistricting
Data (Public Law 94-171) Summary File, 2020 Census of Population and Housing, Table P002.
16
2.2 Regional Racial Segregation (between Los Gatos and other
jurisdictions)
At the regional level, segregation is measured between cities instead of between neighborhoods. Racial
dot maps are not only useful for examining neighborhood racial segregation within a jurisdiction, but
these maps can also be used to explore the racial demographic differences between different
jurisdictions in the region. Figure 5 below presents a racial dot map showing the spatial distribution of
racial groups in Los Gatos as well as in nearby Bay Area cities.
Figure 5: Racial Dot Map of Los Gatos and Surrounding Areas (2020)
Universe: Population.
Source: U.S. Census Bureau, 2020 Census State Redistricting Data (Public Law 94-171) Summary File, 2020 Census of Population
and Housing, Table P002.
Note: The plot shows the racial distribution at the census block level for Town of Los Gatos and vicinity. Dots in each census
block are randomly placed and should not be construed as actual placement of people.
To understand how each city contributes to the total segregation of the Bay Area, one can look at the
difference in the racial composition of a jurisdiction compared to the racial composition of the region
as a whole. The racial demographics in Los Gatos for the years 2000, 2010, and 2020 can be found in
Table 4 below. The table also provides the racial composition of the nine-county Bay Area. As of 2020,
Los Gatos has a higher share of white residents than the Bay Area as a whole, a lower share of Latinx
residents, a lower share of Black residents, and a lower share of Asian/Pacific Islander residents.
17
Table 4: Population by Racial Group, Los Gatos and the Region
Los Gatos Bay Area
Race 2000 2010 2020 2020
Asian/Pacific Islander 7.6% 10.9% 18.3% 28.2%
Black/African American 0.8% 0.9% 0.9% 5.6%
Latinx 5.2% 7.2% 9.0% 24.4%
Other or Multiple Races 3.2% 4.0% 6.5% 5.9%
White 83.3% 77.0% 65.3% 35.8%
Universe: Population.
Source: IPUMS National Historical Geographic Information System (NHGIS). U.S. Census Bureau, 2020 Census State Redistricting
Data (Public Law 94-171) Summary File, 2020 Census of Population and Housing, Table P002. Data from 2010 is from U.S. Census
Bureau, Census 2010, Table P4. Data for 2000 is standardized to 2010 census tract geographies and is from U.S. Census Bureau,
Census 2000, Table P004.
Figure 6 below compares the racial demographics in Los Gatos to those of all 109 Bay Area
jurisdictions.11 In this chart, each dot represents a Bay Area jurisdiction. For each racial group, the
spread of dots represents the range of that group’s representation among Bay Area jurisdictions.
Additionally, the black line within each racial group notes the percentage of the population of Town of
Los Gatos represented by that group and how that percentage ranks among all 109 jurisdictions. Local
staff can use this chart to compare the representation of different racial groups in their jurisdiction to
those groups’ representation in other jurisdictions in the region, which can indicate the extent of
segregation between this jurisdiction and the region.
11 While comparisons of segregation measures are made only using the 104 jurisdictions with more than one census
tract, this comparison of jurisdiction level demographic data can be made using all 109 jurisdictions.
18
Figure 6: Racial Demographics of Los Gatos Compared to All Bay Area Jurisdictions
(2020)
Universe: Bay Area Jurisdictions.
Source U.S. Census Bureau, 2020 Census State Redistricting Data (Public Law 94-171) Summary File, 2020 Census of Population
and Housing, Table P002.
The map in Figure 7 below also illustrates regional racial segregation between Los Gatos and other
jurisdictions. This map demonstrates how the percentage of people of color in Los Gatos and
surrounding jurisdictions compares to the Bay Area as a whole:
• Jurisdictions shaded orange have a share of people of color that is less than the Bay Area as a
whole, and the degree of difference is greater than five percentage points.
• Jurisdictions shaded white have a share of people of color comparable to the regional
percentage of people of color (within five percentage points).
• Jurisdictions shaded grey have a share of people of color that is more than five percentage
points greater than the regional percentage of people of color.
19
Figure 7: Comparing the Share of People of Color in Los Gatos and Vicinity to the Bay
Area (2020)
Universe: Population.
Source: U.S. Census Bureau, 2020 Census State Redistricting Data (Public Law 94-171) Summary File, 2020 Census of Population
and Housing, Table P002.
Note: People of color refer to persons not identifying as non-Hispanic white. The nine-county Bay Area is the reference region
for this map.
Segregation between jurisdictions in the region can also be analyzed by calculating regional values for
the segregation indices discussed previously. Table 5 presents dissimilarity index, isolation index, and
Theil’s H index values for racial segregation for the entire nine-county Bay Area in 2010 and 2020. In
the previous section of this report focused on neighborhood level racial segregation, these indices were
calculated by comparing the racial demographics of the census tracts within a jurisdiction to the
demographics of the jurisdiction as a whole. In Table 5, these measures are calculated by comparing
the racial demographics of local jurisdictions to the region’s racial makeup. For example, looking at
the 2020 data, Table 5 shows the white isolation index value for the region is 0.429, meaning that on
average white Bay Area residents live in a jurisdiction that is 42.9% white in 2020. An example of
regional dissimilarity index values in Table 5 is the Black/white dissimilarity index value of 0.459,
which means that across the region 45.9% of Black (or white) residents would need to move to a
different jurisdiction to evenly distribute Black and white residents across Bay Area jurisdictions. The
dissimilarity index values in Table 5 reflect recommendations made in HCD’s AFFH guidance for
calculating dissimilarity at the region level.12 The regional value for the Theil’s H index measures how
12 For more information on HCD’s recommendations regarding data considerations for analyzing integration and
segregation patterns, see page 31 of the AFFH Guidance Memo.
20
diverse each Bay Area jurisdiction is compared to the racial diversity of the whole region. A Theil’s H
Index value of 0 would mean all jurisdictions within the Bay Area have the same racial demographics as
the entire region, while a value of 1 would mean each racial group lives exclusively in their own
separate jurisdiction. The regional Theil’s H index value for racial segregation decreased slightly
between 2010 and 2020, meaning that racial groups in the Bay Area are now slightly less separated by
the borders between jurisdictions.
Table 5: Regional Racial Segregation Measures
Index Group 2010 2020
Isolation Index Regional Level
Asian/Pacific Islander 0.317 0.378
Black/African American 0.144 0.118
Latinx 0.283 0.291
White 0.496 0.429
People of Color 0.629 0.682
Dissimilarity Index Regional Level
Asian/Pacific Islander vs. White 0.384 0.369
Black/African American vs. White 0.475 0.459
Latinx vs. White 0.301 0.297
People of Color vs. White 0.296 0.293
Theil's H Multi-racial All Racial Groups 0.103 0.097
Universe: Population.
Source: IPUMS National Historical Geographic Information System (NHGIS). U.S. Census Bureau, 2020 Census State Redistricting
Data (Public Law 94-171) Summary File, 2020 Census of Population and Housing, Table P002. Data from 2010 is from U.S. Census
Bureau, 2010 Census of Population and Housing, Table P4.
21
3 INCOME SEGREGATION IN TOWN OF LOS GATOS
Definition of Terms - Income Groups
When analyzing segregation by income, this report uses income group
designations consistent with the Regional Housing Needs Allocation and
the Housing Element:
Very low-income: individuals earning less than 50% of Area Median
Income (AMI)
Low-income: individuals earning 50%-80% of AMI
Moderate-income: individuals earning 80%-120% of AMI
Above moderate-income: individuals earning 120% or more of AMI
Additionally, this report uses the term “lower-income” to refer to all people
who earn less than 80% of AMI, which includes both low-income and very
low-income individuals.
The income groups described above are based on U.S. Department of
Housing and Urban Development (HUD) calculations for AMI. HUD
calculates the AMI for different metropolitan areas, and the nine county
Bay Area includes the following metropolitan areas: Napa Metro Area
(Napa County), Oakland-Fremont Metro Area (Alameda and Contra
Costa Counties), San Francisco Metro Area (Marin, San Francisco, and
San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa
Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-
Fairfield Metro Area (Solano County).
The income categories used in this report are based on the AMI for the
HUD metro area where this jurisdiction is located.
3.1 Neighborhood Level Income Segregation (within Los Gatos)
Income segregation can be measured using similar indices as racial segregation. Income dot maps,
similar to the racial dot maps shown in Figures 1 and 5, are useful for visualizing segregation between
multiple income groups at the same time. The income dot map of Los Gatos in Figure 8 below offers a
visual representation of the spatial distribution of income groups within the jurisdiction. As with the
racial dot maps, when the dots show lack of a pattern or clustering, income segregation measures tend
to be lower, and conversely, when clusters are apparent, the segregation measures may be higher as
well.
22
Figure 8: Income Dot Map of Los Gatos (2015)
Universe: Population.
Source: U.S. Department of Housing and Urban Development, American Community Survey 5-Year 2011-2015 Low- and Moderate-
Income Summary Data.
Note: The plot shows the income group distribution at the census block group level for Town of Los Gatos and vicinity. Dots in
each block group are randomly placed and should not be construed as actual placement of individuals.
The isolation index values for all income groups in Los Gatos for the years 2010 and 2015 can be found
in Table 6 below.13 Above Moderate-income residents are the most isolated income group in Los Gatos.
Los Gatos’s isolation index of 0.619 for these residents means that the average Above Moderate-income
resident in Los Gatos lives in a neighborhood that is 61.9% Above Moderate-income. Among all income
groups, the Above Moderate-income population’s isolation index has changed the most over time,
becoming less segregated from other income groups between 2010 and 2015.
Similar to the tables presented earlier for neighborhood racial segregation, the “Bay Area Average”
column in Table 6 provides the average isolation index value across Bay Area jurisdictions for different
income groups in 2015. The data in this column can be used as a comparison to provide context for the
levels of segregation experienced by income groups in this jurisdiction. For example, Table 6 indicates
the average isolation index value for very low-income residents across Bay Area jurisdictions is 0.269,
13 This report presents data for income segregation for the years 2010 and 2015, which is different than the time
periods used for racial segregation. This deviation stems from the data source recommended for income
segregation calculations in HCD’s AFFH Guidelines. This data source most recently updated with data from the
2011-2015 American Community Survey 5-year estimates. For more information on HCD’s recommendations for
calculating income segregation, see page 32 of HCD’s AFFH Guidelines.
23
meaning that in the average Bay Area jurisdiction a very low-income resident lives in a neighborhood
that is 26.9% very low-income.
Table 6: Income Group Isolation Index Values for Segregation within Los Gatos
Los Gatos Bay Area
Average
Income Group 2010 2015 2015
Very Low-Income (<50% AMI) 0.125 0.162 0.269
Low-Income (50%-80% AMI) 0.067 0.115 0.145
Moderate-Income (80%-120% AMI) 0.135 0.166 0.183
Above Moderate-Income (>120% AMI) 0.728 0.619 0.507
Universe: Population.
Source: Data for 2015 is from U.S. Department of Housing and Urban Development, American Community Survey 5-Year 2011-
2015 Low- and Moderate-Income Summary Data. Data for 2010 is from U.S. Department of Housing and Urban Development,
American Community Survey 5-Year 2006-2010 Low- and Moderate-Income Summary Data.
Figure 9 below shows how income group isolation index values in Los Gatos compare to values in other
Bay Area jurisdictions. In this chart, each dot represents a Bay Area jurisdiction. For each income
group, the spread of dots represents the range of isolation index values among Bay Area jurisdictions.
Additionally, the black line within each income group notes the isolation index value for that group in
Los Gatos, and each dashed red line represents the Bay Area average for the isolation index for that
group. Local staff can use this chart to contextualize how segregation levels for income groups in their
jurisdiction compare to the rest of the region.
24
Figure 9: Income Group Isolation Index Values for Los Gatos Compared to Other Bay
Area Jurisdictions (2015)
Universe: Bay Area Jurisdictions.
Source: U.S. Department of Housing and Urban Development, American Community Survey 5-Year 2011-2015 Low- and Moderate-
Income Summary Data.
Table 7 below provides the dissimilarity index values indicating the level of segregation in Los Gatos
between residents who are lower-income (earning less than 80% of AMI) and those who are not lower-
income (earning above 80% of AMI). This data aligns with the requirements described in HCD’s AFFH
Guidance Memo for identifying dissimilarity for lower-income households.14 Segregation in Los Gatos
between lower-income residents and residents who are not lower-income increased between 2010 and
2015. Additionally, Table 7 shows dissimilarity index values for the level of segregation in Albany
between residents who are very low-income (earning less than 50% of AMI) and those who are above
moderate-income (earning above 120% of AMI). This supplementary data point provides additional
nuance to an analysis of income segregation, as this index value indicates the extent to which a
jurisdiction’s lowest and highest income residents live in separate neighborhoods.
Similar to other tables in this report, the “Bay Area Average” column shows the average dissimilarity
index values for these income group pairings across Bay Area jurisdictions in 2015. For example, Table
7 indicates that the average dissimilarity index between lower-income residents and other residents in
a Bay Area jurisdiction is 0.198, so on average 19.8% of lower-income residents in a Bay Area
jurisdiction would need to move to a different neighborhood within the jurisdiction to create perfect
income group integration in that jurisdiction.
14 For more information, see page 32 of HCD’s AFFH Guidance Memo.
25
In 2015, the income segregation in Los Gatos between lower-income residents and other residents was
higher than the average value for Bay Area jurisdictions (See Table 7). This means that the lower-
income residents are more segregated from other residents within Los Gatos compared to other
Jurisdictions in the region.
Table 7: Income Group Dissimilarity Index Values for Segregation within Los
Gatos
Los Gatos Bay Area
Average
Income Group 2010 2015 2015
Below 80% AMI vs. Above 80% AMI 0.142 0.226 0.198
Below 50% AMI vs. Above 120% AMI 0.194 0.234 0.253
Universe: Population.
Source: Data for 2015 is from U.S. Department of Housing and Urban Development, American Community Survey 5-Year 2011-
2015 Low- and Moderate-Income Summary Data. Data for 2010 is from U.S. Department of Housing and Urban Development,
American Community Survey 5-Year 2006-2010 Low- and Moderate-Income Summary Data.
Figure 10 below shows how dissimilarity index values for income segregation in Los Gatos compare to
values in other Bay Area jurisdictions. In this chart, each dot represents a Bay Area jurisdiction. For
each income group pairing, the spread of dots represents the range of dissimilarity index values among
Bay Area jurisdictions. Additionally, the black line within each income group pairing notes the
dissimilarity index value in Los Gatos, and each dashed red line represents the Bay Area average for the
dissimilarity index for that pairing. Local staff can use this chart to contextualize how segregation
levels between lower-income residents and wealthier residents in their jurisdiction compared to the
rest of the region.
26
Figure 10: Income Group Dissimilarity Index Values for Los Gatos Compared to Other
Bay Area Jurisdictions (2015)
Universe: Bay Area Jurisdictions.
Source: U.S. Department of Housing and Urban Development, American Community Survey 5-Year 2011-2015 Low- and Moderate-
Income Summary Data.
The Theil’s H Index values for neighborhood income group segregation in Los Gatos for the years 2010
and 2015 can be found in Table 8 below. The “Bay Area Average” column in this table provides the
average Theil’s H Index value across Bay Area jurisdictions for different income groups in 2015. By
2015, the Theil’s H Index value for income segregation in Los Gatos was about the same amount as it
had been in 2010. In 2015, the Theil’s H Index value for income group segregation in Los Gatos was
lower than the average value for Bay Area jurisdictions, indicating there is less neighborhood level
income segregation in Los Gatos than in the average Bay Area city.
Table 8: Theil’s H Index Values for Income Segregation within Los Gatos
Los Gatos Bay Area
Average
Index 2010 2015 2015
Theil's H Multi-income 0.030 0.028 0.043
Universe: Population.
Source: Data for 2015 is from U.S. Department of Housing and Urban Development, American Community Survey 5-Year 2011-
2015 Low- and Moderate-Income Summary Data. Data for 2010 is from U.S. Department of Housing and Urban Development,
American Community Survey 5-Year 2006-2010 Low- and Moderate-Income Summary Data.
27
Figure 11 below shows how Theil’s H index values for income group segregation in Los Gatos compare
to values in other Bay Area jurisdictions in 2015. In this chart, each dot represents a Bay Area
jurisdiction. Additionally, the black line notes the Theil’s H index value for income group segregation in
Los Gatos, and the dashed red line represents the average Theil’s H index value across Bay Area
jurisdictions. Local staff can use this chart to compare how neighborhood income group segregation
levels in their jurisdiction compare to other jurisdictions in the region.
Figure 11: Income Group Theil’s H Index Values for Los Gatos Compared to Other Bay
Area Jurisdictions (2015)
Universe: Bay Area Jurisdictions.
Source: U.S. Department of Housing and Urban Development, American Community Survey 5-Year 2011-2015 Low- and Moderate-
Income Summary Data.
3.2 Regional Income Segregation (between Los Gatos and other
jurisdictions)
At the regional level, segregation is measured between jurisdictions instead of between neighborhoods.
Income dot maps are not only useful for examining neighborhood income segregation within a
jurisdiction, but these maps can also be used to explore income demographic differences between
jurisdictions in the region. Figure 12 below presents an income dot map showing the spatial distribution
of income groups in Los Gatos as well as in nearby Bay Area jurisdictions.
28
Figure 12: Income Dot Map of Los Gatos and Surrounding Areas (2015)
Universe: Population.
Source: U.S. Department of Housing and Urban Development, American Community Survey 5-Year 2011-2015 Low- and Moderate-
Income Summary Data.
Note: The plot shows the income group distribution at the census block group level for Town of Los Gatos and vicinity. Dots in
each block group are randomly placed and should not be construed as actual placement of individuals.
When looking at income segregation between jurisdictions in the Bay Area, one can examine how Los
Gatos differs from the region. The income demographics in Los Gatos for the years 2010 and 2015 can
be found in Table 9 below. The table also provides the income composition of the nine-county Bay Area
in 2015. As of that year, Los Gatos had a lower share of very low-income residents than the Bay Area as
a whole, a lower share of low-income residents, a lower share of moderate-income residents, and a
higher share of above moderate-income residents.
Table 9: Population by Income Group, Los Gatos and the Region
Los Gatos Bay Area
Income Group 2010 2015 2015
Very Low-Income (<50% AMI) 10.83% 14.29% 28.7%
Low-Income (50%-80% AMI) 6.56% 10.57% 14.3%
Moderate-Income (80%-120% AMI) 11% 16.34% 17.6%
Above Moderate-Income (>120% AMI) 71.62% 58.8% 39.4%
29
Universe: Population.
Source: Data for 2015 is from Housing U.S. Department of and Urban Development, American Community Survey 5-Year 2011-
2015 Low- and Moderate-Income Summary Data. Data for 2010 is from U.S. Department of Housing and Urban Development,
American Community Survey 5-Year 2006-2010 Low- and Moderate-Income Summary Data.
Figure 13 below compares the income demographics in Los Gatos to other Bay Area jurisdictions.15 Like
the chart in Figure 3, each dot represents a Bay Area jurisdiction. For each income group, the spread of
dots represents the range of that group’s representation among Bay Area jurisdictions. The smallest
range is among jurisdictions’ moderate-income populations, while Bay Area jurisdictions vary the most
in the share of their population that is above moderate-income. Additionally, the black lines within
each income group note the percentage of Los Gatos population represented by that group and how
that percentage ranks among other jurisdictions. Local staff can use this chart to compare the
representation of different income groups in their jurisdiction to those groups’ representation in other
jurisdictions in the region, which can indicate the extent of segregation between this jurisdiction and
the region.
Figure 13: Income Demographics of Los Gatos Compared to Other Bay Area
Jurisdictions (2015)
Universe: Bay Area Jurisdictions.
Source: U.S. Department of Housing and Urban Development, American Community Survey 5-Year 2011-2015 Low- and Moderate-
Income Summary Data.
15 While comparisons of segregation measures are made only using the 104 jurisdictions with more than one census
tract, this comparison of jurisdiction level demographic data can be made using all 109 jurisdictions.
30
Income segregation between jurisdictions in the region can also be analyzed by calculating regional
values for the segregation indices discussed previously. Similar to the regional racial segregation
measures shown in Table 5, Table 10 presents dissimilarity index, isolation index, and Theil’s H index
values for income segregation for the entire nine-county Bay Area in 2010 and 2015. In the previous
section of this report focused on neighborhood level income segregation, segregation indices were
calculated by comparing the income demographics of the census tracts within a jurisdiction to the
demographics of the jurisdiction as a whole. In Table 10, these measures are calculated by comparing
the income demographics of local jurisdictions to the region’s income group makeup. For example,
looking at 2015 data, Table 10 shows the regional isolation index value for very low-income residents is
0.315 for 2015, meaning that on average very low-income Bay Area residents live in a jurisdiction that
is 31.5% very low-income. The regional dissimilarity index for lower-income residents and other
residents is 0.194 in 2015, which means that across the region 19.4% of lower-income residents would
need to move to a different jurisdiction to create perfect income group integration in the Bay Area as a
whole. The regional value for the Theil’s H index measures how diverse each Bay Area jurisdiction is
compared to the income group diversity of the whole region. A Theil’s H Index value of 0 would mean
all jurisdictions within the Bay Area have the same income demographics as the entire region, while a
value of 1 would mean each income group lives exclusively in their own separate jurisdiction. The
regional Theil’s H index value for income segregation decreased slightly between 2010 and 2015,
meaning that income groups in the Bay Area are now slightly less separated by the borders between
jurisdictions.
Table 10: Regional Income Segregation Measures
Index Group 2010 2015
Isolation Index Regional Level
Very Low-Income (<50% AMI) 0.277 0.315
Low-Income (50%-80% AMI) 0.157 0.154
Moderate-Income (80%-120% AMI) 0.185 0.180
Above Moderate-Income (>120% AMI) 0.467 0.435
Dissimilarity Index Regional Level
Below 80% AMI vs. Above 80% AMI 0.186 0.194
Below 50% AMI vs. Above 120% AMI 0.238 0.248
Theil's H Multi-income All Income Groups 0.034 0.032
Universe: Population.
Source: Data for 2015 is from U.S. Department of Housing and Urban Development, American Community Survey 5-Year 2011-
2015 Low- and Moderate-Income Summary Data. Data for 2010 is from U.S. Department of Housing and Urban Development,
American Community Survey 5-Year 2006-2010 Low- and Moderate-Income Summary Data.
31
4 APPENDIX 1: SUMMARY OF FINDINGS
4.1 Segregation in Town of Los Gatos
• The isolation index measures the segregation of a single group, and the dissimilarity index
measures segregation between two different groups. The Theil’s H-Index can be used to
measure segregation between all racial or income groups across the city at once.
• As of 2020, white residents are the most segregated compared to other racial groups in Los
Gatos, as measured by the isolation index. White residents live in neighborhoods where they
are less likely to come into contact with other racial groups.
• Among all racial groups, the white population’s isolation index value has changed the most over
time, becoming less segregated from other racial groups between 2000 and 2020.
• According to the dissimilarity index, within Los Gatos the highest level of racial segregation is
between Black and white residents.16 However, local jurisdiction staff should note that this
dissimilarity index value is not a reliable data point due to small population size.
• According to the Theil’s H-Index, neighborhood racial segregation in Los Gatos increased
between 2010 and 2020. Neighborhood income segregation stayed about the same between
2010 and 2015.
• Above Moderate-income residents are the most segregated compared to other income groups in
Los Gatos. Above Moderate-income residents live in neighborhoods where they are less likely to
encounter residents of other income groups.
• Among all income groups, the Above Moderate-income population’s segregation measure has
changed the most over time, becoming less segregated from other income groups between
2010 and 2015.
• According to the dissimilarity index, segregation between lower-income residents and residents
who are not lower-income has increased between 2010 and 2015. In 2015, the income
segregation in Los Gatos between lower-income residents and other residents was higher than
the average value for Bay Area jurisdictions.
4.2 Segregation Between Town of Los Gatos and Other jurisdictions in
the Bay Area Region
• Los Gatos has a higher share of white residents than other jurisdictions in the Bay Area as a
whole, a lower share of Latinx residents, a lower share of Black residents, and a lower share of
Asian/Pacific Islander residents.
16 The analysis conducted for this report suggests that dissimilarity index values are unreliable for a population
group if that group represents approximately less than 5% of the jurisdiction’s total population. ABAG/MTC
recommends that when cities have population groups that are less than 5% of the jurisdiction’s population (see
Table 15 in Appendix 2), jurisdiction staff could focus on the isolation index or Thiel’s H-Index to gain a more
accurate understanding of neighborhood-level racial segregation in their jurisdiction.
32
• Regarding income groups, Los Gatos has a lower share of very low-income residents than other
jurisdictions in the Bay Area as a whole, a lower share of low-income residents, a lower share
of moderate-income residents, and a higher share of above moderate-income residents.
33
5 APPENDIX 2: SEGREGATION DATA
Appendix 2 combines tabular data presented throughout this report into a more condensed format. This
data compilation is intended to enable local jurisdiction staff and their consultants to easily reference
this data and re-use the data in the Housing Element or other relevant documents/analyses.
Table 11 in this appendix combines data from Table 1, Table 2, and Table 3 in the body of the report.
Table 12 in this appendix combines data from Table 6, Table 7, and Table 8 in the body of the report.
Table 13 represents a duplication of Table 5 in the body of the report; Table 14 represents a
duplication of Table 10 in the body of the report; Table 15 in this appendix represents a duplication of
Table 4 in the body of the report, while Table 16 represents a duplication of Table 9 in the body of the
report.
Table 11: Neighborhood Racial Segregation Levels in Los Gatos
Los Gatos Bay Area
Average
Index Race 2000 2010 2020 2020
Isolation
Asian/Pacific Islander 0.079 0.118 0.197 0.245
Black/African American 0.009 0.012 0.022 0.053
Latinx 0.059 0.082 0.104 0.251
White 0.838 0.774 0.663 0.491
Dissimilarity
Asian/Pacific Islander vs. White 0.106 0.145 0.182 0.185
Black/African American vs. White 0.223* 0.246* 0.369* 0.244
Latinx vs. White 0.119 0.143 0.179 0.207
People of Color vs. White 0.093 0.124 0.157 0.168
Theil's H Multi-racial All 0.011 0.015 0.023 0.042
Universe: Population.
Source: IPUMS National Historical Geographic Information System (NHGIS). U.S. Census Bureau, 2020 Census State Redistricting
Data (Public Law 94-171) Summary File, 2020 Census of Population and Housing, Table P002. Data from 2010 is from U.S. Census
Bureau, 2010 Census of Population and Housing, Table P4. Data for 2000 is standardized to 2010 census tract geographies and is
from U.S. Census Bureau, Census 2000, Table P004.
Note: If a number is marked with an asterisk (*), it indicates that the index is based on a racial group making up less than 5
percent of the jurisdiction population, leading to unreliable numbers.
34
Table 12: Neighborhood Income Segregation Levels in Los Gatos
Los Gatos Bay Area
Average
Index Income Group 2010 2015 2015
Isolation
Very Low-Income (<50% AMI) 0.125 0.162 0.269
Low-Income (50%-80% AMI) 0.067 0.115 0.145
Moderate-Income (80%-120% AMI) 0.135 0.166 0.183
Above Moderate-Income (>120% AMI) 0.728 0.619 0.507
Dissimilarity
Below 80% AMI vs. Above 80% AMI 0.142 0.226 0.198
Below 50% AMI vs. Above 120% AMI 0.194 0.234 0.253
Theil's H Multi-racial All 0.030 0.028 0.043
Universe: Population.
Source: Income data for 2015 is from U.S. Department of Housing and Urban Development, American Community Survey 5-Year
2011-2015 Low- and Moderate-Income Summary Data. Data for 2010 is from U.S. Department of Housing and Urban
Development, American Community Survey 5-Year 2006-2010 Low- and Moderate-Income Summary Data.
35
Table 13: Regional Racial Segregation Measures
Index Group 2010 2020
Isolation Index Regional Level
Asian/Pacific Islander 0.317 0.378
Black/African American 0.144 0.118
Latinx 0.283 0.291
White 0.496 0.429
People of Color 0.629 0.682
Dissimilarity Index Regional Level
Asian/Pacific Islander vs. White 0.384 0.369
Black/African American vs. White 0.475 0.459
Latinx vs. White 0.301 0.297
People of Color vs. White 0.296 0.293
Theil's H Multi-racial All Racial Groups 0.103 0.097
Universe: Population.
Source: IPUMS National Historical Geographic Information System (NHGIS). U.S. Census Bureau, 2020 Census State Redistricting
Data (Public Law 94-171) Summary File, 2020 Census of Population and Housing, Table P002. Data from 2010 is from U.S. Census
Bureau, 2010 Census of Population and Housing, Table P4.
Table 14: Regional Income Segregation Measures
Index Group 2010 2015
Isolation Index Regional Level
Very Low-Income (<50% AMI) 0.277 0.315
Low-Income (50%-80% AMI) 0.157 0.154
Moderate-Income (80%-120% AMI) 0.185 0.180
Above Moderate-Income (>120% AMI) 0.467 0.435
Dissimilarity Index Regional Level
Below 80% AMI vs. Above 80% AMI 0.186 0.194
Below 50% AMI vs. Above 120% AMI 0.238 0.248
Theil's H Multi-income All Income Groups 0.034 0.032
Universe: Population.
Source: Data for 2015 is from U.S. Department of Housing and Urban Development, American Community Survey 5-Year 2011-
2015 Low- and Moderate-Income Summary Data. Data for 2010 is from U.S. Department of Housing and Urban Development,
American Community Survey 5-Year 2006-2010 Low- and Moderate-Income Summary Data.
36
Table 15: Population by Racial Group, Los Gatos and the Region
Los Gatos Bay Area
Race 2000 2010 2020 2020
Asian/Pacific Islander 7.55% 10.95% 18.28% 35.8%
Black/African American 0.76% 0.86% 0.89% 5.6%
Latinx 5.21% 7.21% 9% 28.2%
Other or Multiple Races 3.16% 3.95% 6.55% 24.4%
White 83.31% 77.03% 65.29% 5.9%
Universe: Population.
Source: IPUMS National Historical Geographic Information System (NHGIS). U.S. Census Bureau, 2020 Census State Redistricting
Data (Public Law 94-171) Summary File, 2020 Census of Population and Housing, Table P002. Data from 2010 is from U.S. Census
Bureau, 2010 Census of Population and Housing, Table P4. Data for 2000 is standardized to 2010 census tract geographies and is
from U.S. Census Bureau, Census 2000, Table P004.
Table 16: Population by Income Group, Los Gatos and the Region
Los Gatos Bay Area
Income Group 2010 2015 2015
Very Low-Income (<50% AMI) 10.83% 14.29% 28.7%
Low-Income (50%-80% AMI) 6.56% 10.57% 14.3%
Moderate-Income (80%-120% AMI) 11% 16.34% 17.6%
Above Moderate-Income (>120% AMI) 71.62% 58.8% 39.4%
Universe: Population.
Source: Data for 2015 is from U.S. Department of Housing and Urban Development, American Community Survey 5-Year 2011-
2015 Low- and Moderate-Income Summary Data. Data for 2010 is from U.S. Department of Housing and Urban Development,
American Community Survey 5-Year 2006-2010 Low- and Moderate-Income Summary Data.
37
6 REFERENCES
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66.
Bayer, Patrick, Robert McMillan, and Kim S. Rueben. 2004. “What Drives Racial Segregation? New
Evidence using Census Microdata,” Journal of Urban Economics 56(3): 514-535.
Burch, Traci. 2014. “The Old Jim Crow: Racial Residential Segregation and Imprisonment,” Law and
Policy 36(3): 223-255.
Chetty, Raj and Nathanial Hendren. 2018. “The Impacts of Neighborhoods on Intergenerational Mobility
I: Childhood Exposure Effects,” The Quarterly Journal of Economics 133(3):1107-1162
Cutler, David M., and Edward L. Glaeser. 1997. “Are ghettos good or bad?,” The Quarterly Journal of
Economics 112(3): 827-72.
Lens, Michael and Paavo Monkkonen. 2016. “Do Strict Land Use Regulations Make Metropolitan Areas
More Segregated by Income?,” Journal of the American Planning Association 82(1): 6–21.
Pendall, Rolf. 2000. “Local Land-Use Regulation and the Chain of Exclusion,” Journal of the American
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Rothstein, Richard. 2017. The Color of Law: A Forgotten History of how our Government Segregated
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Sampson, Robert J. 2012. Great American city: Chicago and the enduring neighborhood effect.
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Sharkey, Patrick. 2013. Stuck in place: Urban neighborhoods and the end of progress toward racial
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Trounstine, Jessica. 2015. “Segregation and Inequality in Public Goods,” American Journal of Political
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Trounstine, Jessica. 2018. Segregation by Design: Local Politics and Inequality in American Cities. New
York: Cambridge University Press.
Sites Inventory Form H
APPENDIX
Site Inventory Forms must be submitted to HCD for a housing element or amendment adopted on or after January 1, 2021. The following form is to be used for satisfying this requirement. To submit the form, complete the Excel spreadsheet and submit to HCD at sitesinventory@hcd.ca.gov. Please send the Excel workbook, not a scanned or PDF copy of the tables.General Information Jurisidiction NameLOS GATOSHousing Element Cycle6thContact InformationFirst NameJoelLast NamePaulsonTitleCommunity Development DirectorEmailJpaulson@losgatosca.govPhone4083546879Mailing AddressStreet Address 110 East Main StreetCityLos Gatos Zip Code94538Websitehttps://www.losgatosca.gov/897/PlanningOctober 2022 Appendix H H-1
Jurisdiction Name Site Address/Intersection5 Digit ZIP CodeAssessor Parcel NumberConsolidated SitesGeneral Plan Designation (Current)Zoning Designation (Current)Minimum Density Allowed(units/acre)Maximum Density Allowed(units/acre)Parcel Size (Acres)Existing Use/Vacancy Infrastructure Publicly-OwnedSite StatusIdentified in Last/Last Two Planning Cycle(s)Lower Income CapacityModerate Income CapacityAbove Moderate IncomeCapacityTotal CapacityOptional Information1 Optional Information2 Optional Information3LOS GATOS50 Park Avenue95030 529-01-040 AMedium Density Residential R-1D512 0.18 Residential YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element00 2 2Site A‐1 consolidated parcels10 du/ac General Plan typical density Property Owner Interest Form SubmittedLOS GATOS61 Montebello Way95030 529-01-041 AMedium Density Residential R-1D512 0.69 Residential YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element00 7 7Site A‐1 consolidated parcels10 du/ac General Plan typical density Property Owner Interest Form SubmittedLOS GATOS101 South Santa Cruz Avenue95030 529-01-022Central Business District C-22030 0.8 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element0021 21Site A‐226 du/ac General Plan typical density Property Owner Interest Form SubmittedLOS GATOS165 Los Gatos Saratoga Road95030 529-04-083Central Business District C-22030 0.37 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element0010 10Site A‐326 du/ac General Plan typical density Property Owner Interest Form SubmittedLOS GATOS50 Los Gatos Saratoga Road95030 529-24-032 BMixed Use Commercial CH:PD3040 7.04 Hotel/motel YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element151 5151 253Site B‐1 consolidated parcels36 du/ac General Plan typical density Property Owner Interest Form SubmittedLOS GATOSLos Gatos Saratoga Road95030 529-24-001 BMixed Use Commercial CH:PD3040 1.49 Hotel/motel YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element27 1116 54Site B‐1 consolidated parcels36 du/ac General Plan typical density Property Owner Interest Form SubmittedLOS GATOSLos Gatos Saratoga Road95030 529-24-003 BMixed Use Commercial CH:PD3040 0.28 Hotel/motel YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element52 310Site B‐1 consolidated parcels36 du/ac General Plan typical density Property Owner Interest Form SubmittedLOS GATOS15300 Los Gatos Bouelvard95032 424-17-036Mixed Use Commercial C-13040 1.6 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element40 117 58Site C‐136 du/ac General Plan typical density Property Owner Interest Form SubmittedLOS GATOS15349 Los Gatos Bouelvard95032 424-19-049 CMixed Use Commercial CH3040 0.34 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element82 212Site C‐2 consolidated parcels36 du/ac General Plan typical density Property Owner Interest Form SubmittedLOS GATOSLos Gatos Bouelvard95032 424-19-048 CMixed Use Commercial CH3040 1.2 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element3094 43Site C‐2 consolidated parcels36 du/ac General Plan typical density Property Owner Interest Form SubmittedLOS GATOSLos Gatos Bouelvard95032 424-19-069 CMixed Use Commercial CH3040 1.34 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element34 104 48Site C‐2 consolidated parcels36 du/ac General Plan typical density Property Owner Interest Form SubmittedLOS GATOS15425 Los Gatos Bouelvard95032 424-19-067Mixed Use Commercial CH3040 1.09 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element2784 39Site C‐336 du/ac General Plan typical density Property Owner Interest Form SubmittedLOS GATOS15975 Los Gatos Boulevard95032 529-15-059Mixed Use Commercial CH3040 0.64 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element1652 23Site C‐436 du/ac General Plan typical density Property Owner Interest Form SubmittedLOS GATOS16203 Los Gatos Bouelvard95032 529-16-069Mixed Use Commercial CH3040 0.79 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element2062 28Site C‐536 du/ac General Plan typical density Conceptual Development Advisory Committee application for a mixed-use development submitted on 11/17/2020 anticipating for increased density per the General Plan updateLOS GATOS16492 Los Gatos Bouelvard95032 532-07-086 DLow Density Residential C-11020 0.23 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element00 4 4Site C‐6 consolidated parcels18 du/ac General Plan typical density Property Owner Interest Form SubmittedLOS GATOSLos Gatos Bouelvard95032 532-07-085 DLow Density Residential C-11020 0.38 Vacant YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element00 7 7Site C‐6 consolidated parcels18 du/ac General Plan typical density Property Owner Interest Form SubmittedLOS GATOS14859 Los Gatos Boulevard95032 424-07-094 ENorth Forty Specific Plan North Forty Specific Plan3030 2.9 Residential YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant57 1317 87Site D‐1 consolidated parcels30 du/ac North Forty Specific Plan minimum densityProperty Owner has been involved in submitting public comments on the Housing Element Update regarding residential development on the siteLOS GATOS16392 Los Gatos Boulevard95032 424-07-095 ENorth Forty Specific Plan North Forty Specific Plan3030 0.78 Vacant YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant1535 23Site D‐1 consolidated parcels30 du/ac North Forty Specific Plan minimum densityProperty Owner has been involved in submitting public comments on the Housing Element Update regarding residential development on the siteLOS GATOS16260 Burton Road95032 424-07-053 ENorth Forty Specific Plan North Forty Specific Plan3030 0.44 Residential YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant82 313Site D‐1 consolidated parcels30 du/ac North Forty Specific Plan minimum densityProperty Owner has been involved in submitting public comments on the Housing Element Update regarding residential development on the siteLOS GATOS16250 Burton Road95032 424-07-009 ENorth Forty Specific Plan North Forty Specific Plan3030 0.44 Residential YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant82 313Site D‐1 consolidated parcels30 du/ac North Forty Specific Plan minimum densityProperty Owner has been involved in submitting public comments on the Housing Element Update regarding residential development on the siteLOS GATOS14917 Los Gatos Boulevard95032 424-07-081 ENorth Forty Specific PlanNorth Forty Specific Plan3030 3.74 Residential YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant73 1722 112Site D‐1 consolidated parcels30 du/ac North Forty Specific Plan minimum densityProperty Owner has been involved in submitting public comments on the Housing Element Update regarding residential development on the siteLOS GATOS14925 Los Gatos Boulevard95032 424-07-115 ENorth Forty Specific Plan North Forty Specific Plan3030 6.07 Residential YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant118 2737 182Site D‐1 consolidated parcels30 du/ac North Forty Specific Plan minimum densityProperty Owner has been involved in submitting public comments on the Housing Element Update regarding residential development on the siteLOS GATOSLos Gatos Boulevard95032 424-07-116 ENorth Forty Specific Plan North Forty Specific Plan3030 1.02 Vacant YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant2056 31Site D‐1 consolidated parcels30 du/ac North Forty Specific Plan minimum densityProperty Owner has been involved in submitting public comments on the Housing Element Update regarding residential development on the siteLOS GATOS16245 Burton Road95032 424-06-115 FNorth Forty Specific Plan North Forty Specific Plan3030 1.17 Residential YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant2357 35Site D‐2 consolidated parcels30 du/ac North Forty Specific Plan minimum densityNo; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underwayLOS GATOSBurton Road95032 424-06-116 FNorth Forty Specific Plan North Forty Specific Plan3030 0.11 Vacant YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant20 1 3Site D‐2 consolidated parcels30 du/ac North Forty Specific Plan minimum densityNo; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underwayLOS GATOS16240 Burton Road95032 424-07-010North Forty Specific Plan North Forty Specific Plan3030 0.26 Residential YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant51 2 8Site D‐330 du/ac North Forty Specific Plan minimum densityNo; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underwayLOS GATOS16270 Burton Road95032 424-07-052North Forty Specific Plan North Forty Specific Plan30300.43 Residential YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant82 313Site D‐430 du/ac North Forty Specific Plan minimum densityNo; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underwayLOS GATOS16210 Burton Road95032 424-07-054 GNorth Forty Specific Plan North Forty Specific Plan3030 0.26 Residential YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant51 2 8Site D‐5 consolidated parcels30 du/ac North Forty Specific Plan minimum densityNo; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underwayLOS GATOS14831 Los Gatos Boulevard95032 424-07-063 GNorth Forty Specific Plan North Forty Specific Plan3030 0.56 Residential YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant1133 17Site D‐5 consolidated parcels30 du/ac North Forty Specific Plan minimum densityNo; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underwayLOS GATOS14849 Los Gatos Boulevard95032 424-07-064North Forty Specific Plan North Forty Specific Plan3030 0.93 Residential YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant1846 28Site D‐630 du/ac North Forty Specific Plan minimum densityNo; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underwayLOS GATOS14823 Los Gatos Boulevard95032 424-07-065North Forty Specific Plan North Forty Specific Plan3030 0.37 Residential YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant61 411Site D‐730 du/ac North Forty Specific Plan minimum densityNo; however, the parcel is located within Phase II of the North 40 Specific Plan Area where recent significant housing development is underwayLOS GATOS14800 Oka Road95032 424-08-057 HLow Density Residential R-1:805 2.97 Vacant YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant0111 12Site E‐1 consolidated parcels4 du/ac General Plan typical density No; however the property owner has submitted a public comment to the HEAB regarding future development of the site.LOS GATOSOka Lane95032 424-08-029 HLow Density Residential R-1:805 0.31 Vacant YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element00 1 1Site E‐1 consolidated parcels4 du/ac General Plan typical density No; however the property owner has submitted a public comment to the HEAB regarding future development of the site.LOS GATOSOka Lane95032 424-08-059 HLow Density ResidentialR-1:805 1.01 Vacant YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element00 4 4Site E‐1 consolidated parcels4 du/ac General Plan typical density No; however the property owner has submitted a public comment to the HEAB regarding future development of the site.LOS GATOSOka Lane95032 424-08-060 HLow Density Residential R-1:805 1.29 Vacant YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element00 5 5Site E‐1 consolidated parcels4 du/ac General Plan typical density No; however the property owner has submitted a public comment to the HEAB regarding future development of the site.LOS GATOS14800 Oka Road95032 424-08-058 HLow Density Residential R-1:805 1.41 Residential YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element00 6 6Site E‐1 consolidated parcels4 du/ac General Plan typical density No; however the property owner has submitted a public comment to the HEAB regarding future development of the site.LOS GATOS16603 Lark Avenue95032 424-08-017 HMedium Density Residential R-M:5-121422 2.48 Residential YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element3339 45Site E‐1 consolidated parcels18 du/ac General Plan typical density No; however the property owner has submitted a public comment to the HEAB regarding future development of the site.LOS GATOS14840 Oka Road95032 424-08-021 HMedium Density Residential R-M:5-121422 4.32 Vacant YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant6666 78Site E‐1 consolidated parcels18 du/ac General Plan typical density No; however the property owner has submitted a public comment to the HEAB regarding future development of the site.LOS GATOSOka Lane95032 424-08-074Low Density Residential R-1:805 6.41 Vacant YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant2123 26Site E‐24 du/ac General Plan typical density No; however the property owner has submitted a public comment to the HEAB regarding future development of the site.LOS GATOSOka Road (Cal Trans ROW)95032 000-00-000Medium Density Residential R-1:81422 4.9 Vacant YES - Current YES - State-Owned Available Not Used in Prior Housing Element7774 88Site E‐318 du/ac General Plan typical densityLOS GATOS110 Knowles Drive95032 424-32-077High Density Residential CM:AHOZ3040 7.34 Commercial YES - Current NO - Privately-Owned Available Used in Prior Housing Element - Non-Vacant106 7979 264Site F‐136 du/ac General Plan typical density No; however the site is located within the Affordable Housing Overlay Zone.LOS GATOS206 Knowles Drive95032 424-32-076High Density Residential CM3040 2.41 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element35 2626 87Site F‐236 du/ac General Plan typical density No; however, the site is located immediately adjacent to 110 Knowles Drive (Site F-1), which has an Affordable Housing Overlay Zone.LOS GATOS440 Los Gatos Almaden Road95032 527-49-048 INeighborhood Commercial C-11020 0.52 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element00 9 9Site G‐1 consolidated parcels18 du/ac General Plan typical density Property Owner Interest Form SubmittedLOS GATOS445 Leigh Avenue95032 527-49-049 INeighborhood Commercial C-11020 0.29 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element00 5 5Site G‐1 consolidated parcels18 du/ac General Plan typical density Property Owner Interest Form SubmittedLOS GATOS14000 Blossom Hill Road95032 527-32-028Neighborhood Commercial C-11020 0.69 Commercial YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element0012 12Site H‐118 du/ac General Plan typical density Property Owner Interest Form SubmittedLOS GATOS401-409 Alberto Road95032 529-23-018Mixed Use Commercial CH3040 2.19 Vacant YES - Current NO - Privately-Owned Available Not Used in Prior Housing Element4446 54Site I‐125 du/ac General Plan typical density Property Owner Interest Form Submitted; Conceptual Development Advisory Committee submitted on 9/21/2022 for a mixed-use project with 25 du/acTable A: Housing Element Sites InventoryOctober 2022 Appendix H H-2
Jurisdiction Name Site Address/Intersection5 Digit ZIP CodeAssessor Parcel NumberVery Low- Income Low-IncomeModerate- IncomeAbove Moderate- Income Type of ShortfallParcel Size (Acres)Current General Plan Designation Current ZoningProposed General Plan (GP) DesignationProposed ZoningMinimum Density AllowedMaximum Density AllowedTotal CapacityVacant/ NonvacantDescription of Existing Uses Infrastructure Optional Information1LOS GATOS 50 Park Avenue 95030 529-01-040 0 0 0 2 Shortfall of Sites 0.18 Medium Density Res R-1D Medium Density Res R-1D 5 12 2 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 61 Montebello Way 95030 529-01-041 0 0 0 7 Shortfall of Sites 0.69 Medium Density Res R-1D Medium Density Res R-1D 5 12 7 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 101 S. Santa Cruz Avenue 95030 529-01-022 0 0 0 21 Shortfall of Sites 0.8 Central Business Dis C-2 Central Business Dis C-2 20 30 21 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 165 Los Gatos-Saratoga Road 95030 529-04-083 0 0 0 10 Shortfall of Sites 0.37 Central Business Dis C-2 Central Business Dis C-2 20 30 10 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 50 Los Gatos-Saratoga Road 95030 529-24-032 76 75 51 51 Shortfall of Sites 7.04 Mixed Use Commerc CH:PD Mixed Use Commerc CH:PD 30 40 253 Non-Vacant Hotel/motel YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS Los Gatos-Saratoga Road 95030 529-24-001 16 11 11 16 Shortfall of Sites 1.49 Mixed Use Commerc CH:PD Mixed Use Commerc CH:PD 30 40 54 Non-Vacant Hotel/motel YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS Los Gatos-Saratoga Road 95030 529-24-003 3 2 2 3 Shortfall of Sites 0.28 Mixed Use Commerc CH:PD Mixed Use Commerc CH:PD 30 40 10 Non-Vacant Hotel/motel YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 15300 Los Gatos Boulevard95032 424-17-0362911117 Shortfall of Sites1.6 Mixed Use Commerc C-1Mixed Use Commerc C-130 40 58 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 15349 Los Gatos Boulevard95032 424-19-0496222 Shortfall of Sites0.34 Mixed Use Commerc CHMixed Use Commerc CH30 40 12 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 15367 Los Gatos Boulevard95032 424-19-04821994 Shortfall of Sites1.2 Mixed Use Commerc CHMixed Use Commerc CH30 40 43 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 15405 Los Gatos Boulevard95032 424-19-0692410104 Shortfall of Sites1.34 Mixed Use Commerc CHMixed Use Commerc CH30 40 48 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 15425 Los Gatos Boulevard95032 424-19-06719884 Shortfall of Sites1.09 Mixed Use Commerc CHMixed Use Commerc CH30 40 39 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 15795 Los Gatos Boulevard95032 529-15-05911552 Shortfall of Sites0.64 Mixed Use Commerc CHMixed Use Commerc CH30 40 23 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 16203 Los Gatos Boulevard95032 529-16-06914662 Shortfall of Sites0.79 Mixed Use Commerc CHMixed Use Commerc CH30 40 28 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 16492 Los Gatos Boulevard95032 532-07-0860004 Shortfall of Sites0.23 Low Density Residen C-1Low Density Residen C-110 20 4 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS Los Gatos Boulevard95032 532-07-0850007 Shortfall of Sites0.38 Neighborhood Comm C-1Neighborhood Comm C-110 20 7 VacantVacant YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 14859 Los Gatos Boulevard95032 424-07-094441313 17 Shortfall of Sites2.9 North Forty Specific North Forty Specific North Forty Specific North Forty Specific30 30 87 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 16392 Los Gatos Boulevard95032 424-07-09512335 Shortfall of Sites0.78 North Forty Specific North Forty Specific North Forty Specific North Forty Specific30 30 23 Non-Vacant Vacant YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 16260 Burton Road95032 424-07-0536223 Shortfall of Sites0.44 North Forty Specific North Forty Specific North Forty Specific North Forty Specific30 30 13 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 16250 Burton Road95032 424-07-0096223 Shortfall of Sites0.44 North Forty Specific North Forty Specific North Forty Specific North Forty Specific30 30 13 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS14917 Los Gatos Boulevard95032 424-07-081561717 22Shortfall of Sites3.74North Forty Specific North Forty Specific North Forty Specific North Forty Specific30 30 112 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 14925 Los Gatos Boulevard95032 424-07-115912727 37 Shortfall of Sites6.07 North Forty Specific North Forty Specific North Forty Specific North Forty Specific30 30 182 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS Los Gatos Boulevard95032 424-07-11615556 Shortfall of Sites1.02 North Forty Specific North Forty Specific North Forty Specific North Forty Specific30 30 31 Non-Vacant Vacant YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 16245 Burton Road95032 424-06-11518557 Shortfall of Sites1.17 North Forty Specific North Forty Specific North Forty Specific North Forty Specific30 30 35 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS Burton Road95032 424-06-1162001 Shortfall of Sites0.11 North Forty Specific North Forty Specific North Forty Specific North Forty Specific30 30 3 VacantVacant YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 16240 Burton Road95032 424-07-0104112 Shortfall of Sites0.26 North Forty Specific North Forty Specific North Forty Specific North Forty Specific30 30 8 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 16270 Burton Road95032 424-07-0526223 Shortfall of Sites0.43 North Forty Specific North Forty Specific North Forty Specific North Forty Specific30 30 13 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 16210 Burton Road95032 424-07-0544112 Shortfall of Sites0.26 North Forty Specific North Forty Specific North Forty Specific North Forty Specific30 30 8 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 14831 Los Gatos Boulevard95032 424-07-0638333 Shortfall of Sites0.56 North Forty Specific North Forty Specific North Forty Specific North Forty Specific30 30 17 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 14849 Los Gatos Boulevard95032 424-07-06414446 Shortfall of Sites0.93 North Forty Specific North Forty Specific North Forty Specific North Forty Specific30 30 28 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 14823 Los Gatos Boulevard95032 424-07-0655114 Shortfall of Sites0.37 North Forty Specific North Forty Specific North Forty Specific North Forty Specific30 30 11 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 14800 Oka Road95032 424-08-057001 11 Shortfall of Sites2.97 Low Density Residen R-1:8Low Density Residen R-1:805 12 VacantVacant YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS Oka Lane95032 424-08-0290001 Shortfall of Sites0.31 Low Density Residen R-1:8Low Density Residen R-1:805 1 VacantVacant YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS Oka Lane95032 424-08-0590004 Shortfall of Sites1.01 Low Density Residen R-1:8Low Density Residen R-1:805 4 VacantVacant YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS Oka Lane95032 424-08-0600005 Shortfall of Sites1.29 Low Density Residen R-1:8Low Density Residen R-1:805 5 VacantVacant YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 14800 Oka Road95032 424-08-0580006 Shortfall of Sites1.41 Low Density Residen R-1:8Low Density Residen R-1:805 6 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 16603 Lark Avenue95032 424-08-017033 39 Shortfall of Sites2.48 Medium Density Res R-M:5-12Medium Density Res R-M:5-1214 22 45 Non-Vacant Residential YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 14840 Oka Road95032 424-08-021066 66 Shortfall of Sites4.32 Medium Density Res R-M:5-12Medium Density Res R-M:5-1214 22 78 VacantVacant YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS Oka Lane95032 424-08-074021 23 Shortfall of Sites6.41 Low Density Residen R-1:8Low Density Residen R-1:805 26 VacantVacant YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS Oka Road (Cal Trans ROW)95032 000-00-000077 74 Shortfall of Sites4.9 Medium Density Res R-1:8Medium Density Res R-1:814 22 88 VacantVacant YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 110 Knowles Drive95032 424-32-077664079 79 Shortfall of Sites7.34 High Density Reside CM:AHOZHigh Density Reside CM:AHOZ30 40 264 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 206 Knowles Drive95032 424-32-076221326 26 Shortfall of Sites2.41 High Density Reside CMHigh Density Reside CM30 40 87 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 440 Los Gatos Almaden Road95032 527-49-0480009 Shortfall of Sites0.52 Neighborhood Comm C-1Neighborhood Comm C-110 20 9 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 445 Leigh Avenue95032 527-49-0490005 Shortfall of Sites0.29 Neighborhood Comm C-1Neighborhood Comm C-110 20 5 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 14000 Blossom Hill Road95032 527-32-028000 12 Shortfall of Sites0.69 Neighborhood Comm C-1Neighborhood Comm C-110 20 12 Non-Vacant Commercial YES - Current Housing Element Overlay Zone (HEOZ) implementation programLOS GATOS 401-409 Alberto Way95032 529-23-018044 46 Shortfall of Sites2.19 Mixed Use Commerc CHMixed Use Commerc CH30 40 54 VacantVacant YES - Current Housing Element Overlay Zone (HEOZ) implementation programTable B: Candidate Sites Identified to be Rezoned to Accommodate Shortfall Housing NeedOctober 2022 Appendix H H-3
Table C: Land Use, Table Zoning DesignationFrom Table A, Column Gand Table B, Columns L and N(e.g., "R-1")General Land Uses Allowed (e.g., "Low-density residential")R-1DSingle‐family dwelling, provided that there is not more than one principal residential structure on a lot, two‐family dwelling, provided that there is not more than one principal residential structure on a lot, family daycare home, and residential care facility, small family home.C-1Retailing, including formula retail up to six thousand (6,000) square feet, Personal service businesses and service businesses necessary for the conduct of households, Office activities, Limited manufacturing activities when a majority of sales are made, on site, to the ultimate consumer, Activities permitted in the LM zone which were approved on or before February 1, 1993, provided any change of use must be a conforming use in the C‐1 zone, and Group classes, and single‐family, two‐family, and multi‐family in a mixed‐use project through a CUPC-2Retailing, including formula retail up to six thousand square feet, Office activities subject to subsection (c), Limited manufacturing activities when a majority of sales are made, on site, to the ultimate consumer, Wholesaling without warehousing on the premises, Single‐family and two‐family uses, in conjunction with the other uses permitted in this section and multi‐family in a mixed‐use project through a CUPCHRetailing, including formula retail up to six thousand square feet, Personal service businesses and service businesses necessary for the conduct of households, Office activities, Limited manufacturing activities when a majority of sales are made on site to the ultimate consumer, Group classes, and single‐family, two‐family, and multi‐family in a mixed‐use project through a CUPCH:PDHotel up to 300 rooms, a conference facility containing approximately 10,000 square feet, and an underground parking facilityNorth Forty Specific PlanRetail, Restaurant, Personal Service, Office, Hotel, Townhomes, Rowhouses, Multi‐Family, Condominiums, Live/Work Lofts, Park, Public Transpiration and Parking Facilities, Small Family Daycare, Alternating Use/Shared Parking, and Botanical NurseryR-1:8Single‐family dwelling, provided that there is not more than one principal residential structure on a lot, raising of trees, vegetables and horticultural specialties, but not including commercial greenhouses, retail nurseries, or storage of landscaping equipment, products or supplies for commercial uses, family daycare home, and residential care facility, small family home.R-M:5-12Single‐family dwelling, two‐family dwelling, family daycare home, residential care facility, small family home, multi‐family dwelling, and a transitional Housing facility as defined by Health and Safety Code section 50675.2CMActivities involving controlled manufacturing, research and development, wholesaling, warehousing, and other light industrial uses, Sales to the ultimate consumer of articles manufactured on the premises to the customer's order, Professional and administrative offices, Emergency shelters as defined by Health and Safety Code section 50801CM:AHOZMultifamily dwellings, Two‐family dwellings, and Single‐family dwellings.HEOZHousing Element Overlay Zone Implementation Program BF to apply to the sites included in the Site Inventory to modify the development standards (i.e., density, lot coverage, FAR, height) on those sitesOctober 2022 Appendix H H-3
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TOWN OF LOS GATOS
COMMUNITY DEVELOPMENT DEPARTMENT
PLANNING DIVISION
(408) 354-6872 Fax (408) 354-7593
planning@losgatosca.gov
Page 1 of 4
CIVIC CENTER
110 E. MAIN STREET
LOS GATOS, CA 95030
October 14, 2022
Housing Element Team
State Department of Housing and Community Development
C/O Land Use and Planning Unit
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
Re: HCD Submittal of Town of Los Gatos 2023-2031 Draft Housing Element Update
Dear Housing Element Team,
This letter serves to transmit the Town of Los Gatos’ Draft 6 th Cycle 2023-2031 Housing Element.
As an introduction to the Town’s draft document, we have outlined four focus areas within Los
Gatos’ Housing Element that we believe are important for Housing and Community Development’s
(HCD) review and consideration.
The Town of Los Gatos has acknowledged the housing challenges pervading Santa Clara County
including housing affordability, density, and equity. As Los Gatos’ population is largely made up of
high-income earners (65% greater than 100% of AMI) and 83 percent of houses are valued at more
than 1 million dollars, we acknowledge the need to implement changes in housing programs and
policies to address housing affordability and land use challenges. Currently, the Town’s jobs -
household ratio is 1.59, with more low-wage jobs than low-wage residents, illustrating the need for
an increase in diverse housing stock at all income levels. The Town intends to implement housing
policies that affirmatively further fair housing through inclusive community participation and
program implementation to increase equitable access to resources.
The following key areas of the update process have represented this focus:
•Outreach – The Town has conducted extensive public outreach efforts through the Town’s
dedicated Housing Element Update website, “Engage Los Gatos”, to ensure inclusive
stakeholder engagement throughout the Housing Element Update process.
ATTACHMENT 2
Page 2 of 4
The following are efforts the Town has employed:
o Postcards sent to all property owners and tenants in the Town for a Housing Element
Update Community Meeting (17,446 in total).
o Announcements provided in the local newspaper for all Housing Element Advisory Board
(HEAB) meetings, community meetings, joint study sessions, and the 30-day public review
period of the Initial Public Review Draft Housing Element (Los Gatos Weekly).
o 17 pop-up informational tables at the Los Gatos Farmers’ Market.
o Information table at the Town Community Event (Spring in the Green).
o Social posts on five platforms, including Facebook, Instagram, Twitter, Nex tdoor, and the
What’s New page on the Town’s website for all Housing Element meetings, interactive on -
line engagement, and public engagement opportunities.
o Public notices for Housing Element Advisory Board (HEAB) meetings and community
meetings posted at Town Hall and the Library.
o Targeted email messaging that sends email updates to the Town’s Notify Me subscribers for
the 2040 General Plan Update and Housing Element Update.
o 100 Property Owner Interest Forms mailed to all property owners on the Site Inventory.
o Online advertisements for each Housing Element meeting and interactive on-line
engagement opportunities on the Town’s website, the Town’s General Plan Update website,
and the Town’s Housing Element website.
o Use of the Balancing Act, a housing simulation tool, available on the Town’s dedicated
Housing Element Update website for online public engagement.
o 201 submissions to the online site surveys and 42 completions of the Balancing Act housing
simulation tool.
o Seven community group meetings for the 2040 General Plan Update, including discussion
regarding density and affordable housing.
o Eleven HEAB meetings held to date.
o Town Council meeting approving the draft Site Inventory.
o One community meeting hosted by the Santa Clara County Planning Collaborative for Santa
Clara County municipalities.
o A public meeting hosted by West Valley Community Services; Envisioning an Inclusive Los
Gatos: Housing Element 101.
o A joint study session with the Town Council and Planning Commission to discuss housing
growth options for the 2040 General Plan.
o A joint study session with the Town Council, Planning Commission, and HEAB with panelists
from both market rate and non-profit developers.
o Participation in a Santa Clara County Equity Advisory Group Meeting.
• Affirmatively Furthering Fair Housing (AFFH) – The Town’s goal for new housing development
is to increase diverse housing stock to combat income segregation of households and to
increase access to resources (transportation, schools, shopping) for communi ties of color. In
support of this, Los Gatos has worked with Root Policy Research, and conducted an AFFH
analysis of segregation patterns to guide the placement of Housing Opportunity sites, and to
implement the necessary fair housing policies and programs.
Page 3 of 4
• Residential Density – In order to facilitate the creation of new housing at all affordability levels,
the Town proposes an implementation program that will amend the 2020 General Plan to
increase densities for the sites identified in the Site Inventory and a program that will amend
the Zoning Code to create a Housing Element Overlay Zone (HEOZ) which will be applied to the
to the sites identified in the Site Inventory. The HEOZ zone will facilitate modification s to
development standards for each corresponding General Plan Land Use designation to facilitate
and encourage housing production throughout the Town.
• Housing Site Inventory Buffer – Los Gatos’ assigned RHNA for the 2023-2031 cycle is 1,993
units. As an initial target, Los Gatos has identified a potential Housing Site Inventory that would
allow for up to 2,371 units which include a 15 percent buffer as recommended by HCD. In
addition, Los Gatos has also identified additional sites that could be added to the Site Inventory
list should they be needed to address any future no net loss issues that may arise.
Coordination with HCD Staff and Feedback
Prior to submitting Los Gatos’ Draft Housing Element to HCD for review, the Town staff and the
Town's Housing Element consultant proactively met with HCD staff representatives for an initial
discussion and feedback in December of 2021.
Public Review and Revisions
Consistent with State Law, the Town distributed the Initial Public Review Draft Housing Element for
a 30-day public review between August 29, 2022 and September 27, 2022. Public notification
included social media postings, notifications to Housing Element Update stakeholders and
interested members of the public through emails and posting to the Town’s website. The Town
held a HEAB meeting during the 30-day public review period to facilitate further public comments.
In addition, Town staff hosted an informational table at the local Farmers’ Market during the public
comment period. Lastly, an announcement was included in Los Gatos’ local newspaper (Los Gatos
Weekly).
The Town received written and verbal comments with feedback on areas such as the effectiveness
of the Town’s proposed policies and programs to generate affordable housing for low -income
earners, environmental concerns regarding potential housing locations, Town incentives to facilitate
the development of new affordable housing projects, and site-specific feedback on the Town’s Site
Inventory. Staff and the Town’s Housing Element Consultant reviewed these comments carefully,
provided written responses to each comment, and made the following modifications to the Draft
Housing Element:
• Added Implementation Program BH – Provide Adequate Sites for Lower Income Households
on Nonvacant and Vacant Sites Previously Identified in the 5th Cycle Housing Element;
• Revised the housing density for the Site Inventory to be consistent with the typica l density
identified in the 2040 General Plan Residential Buildout;
• Increased the density within the North Forty Specific Plan area to align with the related
Implementation Program D;
Page 4 of 4
• Increased the density within the Affordable Housing Overlay Zone (AHOZ ) to align with the
related Implementation Program BF; and
• Corrected employment characteristics.
HCD Review and Next Steps
We look forward to continuing to work with HCD staff during the review of Los Gatos’ 6 th Cycle
Housing Element to ensure the Town establishes a robust and inclusive plan for housing for 2023-
2031. The Town looks forward to direction and feedback from HCD that would assist the Town in
this evaluation and decision-making process. Questions or comments on the HCD Draft may be
directed to the following Town contacts:
Joel Paulson, Community Development Director
jpaulson@losgatosca.gov
408-354-6879
Jennifer Armer, Planning Manager
jarmer@losgatosca.gov
408-399-5706
Sincerely,
Joel Paulson
Community Development Department
Town of Los Gatos
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 1
Initial Public Review Draft Housing Element
Pursuant to Assembly Bill (AB) 215, the Initial Public Review Draft Housing Element must undergo a
draft review process subject to a 30-day public comment period, and if comments are received, an
additional 10-day consideration and revision period prior to Housing and Community Development
(HCD) submittal.
The following document outlines all public comments received during the 30-day public comment
period as well as responses and revisions to the Draft Housing Element.
Purpose of Draft Housing Element Public Comment
As required by HCD, the Initial Public Review Draft Housing Element was posted on the Town website
and the Housing Element Update website (EngageLosGatoshousing.com) for public review from August
29, 2022, to September 27, 2022, during which the Town received 11 written public comments. A
Housing Element Advisory Board meeting was held via Zoom on September 15, 2022, to accept verbal
public comment on the draft Housing Element. Three people provided verbal comments at that
meeting.
Government Code 65585(b)(1) indicates that the purpose of the public review process includes the
following:
• Disclosing agency analysis;
• Discovering public concerns; and
• Incorporating public comments.
Comment Response for the Initial Public Review Draft Housing Element
This response to public comments for the Initial Public Review Draft Housing Element has been
prepared to address comments received during the public comment period and, together with the
Draft Housing Element, constitutes the complete Town of Los Gatos 6th Cycle 2023-2031 Housing
Element.
Written Comments
The following written comments were received during the 30-day public comment period:
1. Mary Pope-Handy, email dated August 29, 2022;
2. Phil Koen, email dated September 4, 2022;
3. Phil Koen, email dated September 4, 2022;
4. Phil Koen, email dated September 4, 2022;
5. William Walker, Engage Los Gatos website comment dated September 4, 2022;
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 2
6. Adam Mayer, email dated September 13, 2022;
7. Edward Morimoto, email dated September 15, 2022;
8. Phill Keon, emailed dated September 26, 2022;
9. Bill Ehlers, email dated September 26, 2022;
10. Don Capobres, email dated September 27, 2022; and
11. Keith Diggs, email dated September 27, 2022.
Verbal Comments
Verbal comments were received at a Housing Element Advisory Board meeting on September 15, 2022,
from the following participants:
1. Mitch Vinciguerra;
2. Susan Burnett; and
3. Brian Handy.
Written Draft Housing Element Comments
Written comments on the Draft Housing Element and responses to those comments are presented on
the following pages.
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 3
From: Mary Pope-Handy <mary@popehandy.com>
Sent: Monday, August 29, 2022 4:51 PM
To: Housing Element <HEUpdate@losgatosca.gov>
Subject: Comments on the LOS GATOS HOUSING ELEMENT
Hello Community Development Department,
Thank you for the time and hard work put into the Los Gatos Housing Element. We do need more housing,
particularly affordable housing, in our town.
I'd like to suggest that in addition to adding residential units, we factor in the health impacts of various potential
locations for housing. A number of the locations specified in the draft are up against busy streets or even
freeways. These locations have health risks associated with them and it would be better if those areas were not
homes.
The EPA has a publication on these health risks (please click on link to get the EPA report). Additional links:
Living near major roads linked to risk of dementia, Parkinson's, Alzheimer's and MS University of British
Columbia- ScienceDaily. ScienceDaily, 23 January 2020.
Living near busy road stunts children's lung growth, study says - article in The Guardian (British publication), with
links to the academic studies
Kids living near major roads at higher risk of developmental delays - (American study) ScienceDaily.com April 9,
2019
Living Near Highways and Air Pollution - Lung.org by the American Lung Association
We do have other options for housing. For example, rather than putting townhomes at Blossom Hill and
Harwood, but them at Harwood and Almond Blossom, where there's far less traffic. Right now there's a small,
empty school sitting there that would be better as a few residences.
The town could also incentivize putting two homes on one lot, or turning a house into a duplex, by providing tax
breaks or other assistance.
It would also make sense to add housing over single story strip malls, particularly as they would be more set
back from busy roads than a gas station would be.
In real estate, the most important factor is always location. We should not aspire to build homes in locations
that are likely to have long term, negative consequences to the health of their occupants. If homes must be built
in those locations, mitigation efforts should include robust air purifiers and sound buffers such as triple pane
windows.
Sincerely,
Mary Pope-Handy
Town resident and Realtor
Comment Letter # 1
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 4
408-204-7673
Mary Pope-Handy
REALTOR®, ABR, AHWD, CIPS, CRS, SRES
408.204.7673
|
Move2SiliconValley.com
LiveInLosGatos.com
|
PopeHandy.com
DRE 01153805
SanJoseRealEstateLosGatosHomes.com ValleyofHeartsDelight.com
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 5
Response to Comment #1
• Health risks of living near highways (high traffic sites)
o Numerous factors were considered through the site selection process, including feedback
received during the development of the 2040 General Plan, public discussion at HEAB meetings,
and on June 7, 2022, the Town Council accepted the draft Site Inventory as recommended by
the HEAB. The Site Inventory has since been modified based on the receival of a new Property
Owner Interest Form and a request to be removed by a property owner.
o The International Building Code includes requirements that mitigate some effects of buildings in
close proximity to highways, including maximum noise standards.
• Implementing Senate Bill (SB) 9 and Accessory Dwelling Units (ADUs) as additional housing with
incentives
o ADU’s and SB9 projects are included in the Town’s Site Inventory to assist at achieving the
Town’s RHNA plus HCD’s recommended 15% buffer.
o The following approaches were included within the Draft Housing Element to incentivize
multiple homes on single-family residential lots:
Policy HE-1.7: Infill Opportunities in Single-Family Neighborhoods;
Policy HE-2.6: Promote Accessory Dwelling Unit Construction;
Policy HE-6.5: Infill Opportunities in Single-Family Neighborhoods;
Implementation Program U: Accessory Dwelling Units to waive building fees when an ADU is
deed restricted for very low- and low-income households; and
Implementation Program BC: Educate Single-Family Property Owners Regarding In-Fill
Housing Options.
• Consider school-owned property to be converted to housing
o The Housing Element Advisory Board (HEAB) discussed and considered including a program to
encourage public school-site conversions and chose not to include any school owned property
as the Town does not have jurisdiction on public school property.
o The subject site is a private school located on private property and has an active Conditional
Use Permit for a private school use and is zoned for single-family residential uses.
o Town staff has recently received an inquiry from a potential new tenant for the private school
site.
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 6
Comment Letter #2
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 7
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 8
Comment Letter #2 Attachment #1
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 9
Comment Letter #2 Attachment #2
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 10
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 11
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 12
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 13
Response to Comment #2
• Employment characteristics
o The employment characteristics (jobs-households ratio) have been corrected on pages B10 and
B11.
o Table D-2 has been deleted.
• RHNA data and Site Inventory
o The Town’s Site Inventory can be found in Appendix H and a summary of identified
vacant/partially vacant and available sites, ADUs, SB 9 units, and pipeline projects to meet the
Town’s RHNA plus 15 percent buffer can be found in Appendix D of the HCD Draft Initial Review
Housing Element.
• Site reuse from 5th Cycle Housing Element requirements
o There are three sites that were previously used in the Town’s 5th Cycle Housing Element.
Implementation Program BH has been added to the Draft Housing Element. This program
states that the Town will rezone those sites to allow housing developments by right pursuant to
Government Code section 65583.2(i) when 20 percent or more of the units are affordable to
lower income households on the following sites as identified in Appendix H to accommodate
the lower income RHNA that was previously identified in past housing elements: Parcel 424-08-
074; Parcel 424-08-057; and Parcel 424-08-21.
• Site Inventory, typical density for residential
o The Housing Element Sites Inventory Form located in Appendix H and the Overview of Selected
Sites located in Appendix D have both been updated utilizing the typical density identified in
2040 General Plan Residential Buildout Table.
• Percentage of nonvacant sites for low-income housing to accommodate the RHNA
o The Town is relying on non-vacant sites to accommodate 50 percent or more of the RHNA for
lower income households. Property owner interest forms have been submitted on a majority
of the non-vacant sites showing property owner interest in of residential redevelopment within
the 6th cycle planning period.
• Accessory Dwelling Unit incentive program
o On April 7, 2020, the Town Council adopted Ordinance 2307, amending the Zoning Code of the
Town Code regarding ADUs to comply with State law. The Town has provisions in the Town
Code that include an incentive program [Town Code, Section 29.10.320(a)] Incentive program.
Any accessory dwelling unit developed under an Incentive Program which may be established by
Resolution of the Town Council shall be made affordable to eligible applicants pursuant to the
requirements of the Incentive Program. A deed restriction shall be recorded specifying that the
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 14
accessory dwelling unit shall be offered at a reduced rent that is affordable to a lower income
renter (less than eighty (80) percent AMI) provided that the unit is occupied by someone other
than a member of the household occupying the primary dwelling.
o The current incentive program is applicable to any accessory dwelling unit meeting the
requirements of the Town’s ADU incentive program. The incentive program expands the
eligibly to all units rather than just non-conforming residential lots over 10,000 square feet or in
the Hillside Residential Zone on sites that are larger than five acres as described in Action HOU-
1.2 of the 2015-2023 Housing Element.
• Implementation Program, Housing Element Overlay Zone (HEOZ)
o On June 30, 2022, the Town Council adopted the 2040 General Plan. As of September 27, 2022,
the Land Use and Community Design Elements of the 2040 General Plan are suspended pending
the results of a referendum. In the interim, the 2020 General Plan Land Use and Community
Design Elements will govern during the suspension period. The Draft Housing Element includes
Programs BF and BG, requiring amendment the Zoning Code and 2020 General Plan Land Use
Element to include a Housing Element Overlay Zone (HEOZ) to apply to the sites included in the
Site Inventory to modify the development standards on those sites as a more targeted use of
increase in height and density included in the 2040 General Plan Land Use Element as needed
to meet the Town’s RHNA and 15 percent buffer.
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 15
Comment Letter #3
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 16
Response to Comment #3
• Initial Public Draft of the Housing Element
o Assembly Bill 215 (AB 215) was signed by the Governor on September 28, 2021. AB 215
requires that a local government make the first draft version of the Housing Element available
for public comment for at least 30 days and, if any comments are received, take at least 10
additional business days to consider and incorporate public comments into the draft Housing
Element before submitting it to HCD. On August 29, 2022, the Town of Los Gatos released the
Initial Public Review Draft of the 2023-2031 Housing Element for a 30-day public comment
period which ran from August 29, 2022, to September 27, 2022.
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 17
Comment Letter #4
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 18
Comment Letter #4 (Sender Revision)
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 19
Comment Letter #4 Attachment #1
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 20
Response to Comment #4
• Population projections
o The Association of Bay Area Governments (ABAG) and the Metropolitan Transportation
Commission (MTC) has complied demographic, economic, and housing stock data required by
HCD for each Bay Area jurisdiction. Each jurisdiction received a data packet that can be used in
the Housing Needs section of the draft Housing Element. Population data sets and associated
graphics were provided for year 1990 to 2020. The Town will contact ABAG/MTC to see if
population data and updated graphics can be provided for the year 2040, but no additional data
is available at this time.
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 21
Feedback on Town of Los Gatos 6th Cycle 2023-2031 Housing Element
William Walker September 4, 2022
I will give feedback referenced by section.
10.1.1 California’s Housing Crisis
The document states that there is a housing crisis, but there is no reference to any peer-
reviewed academic study demonstrating a crisis. Last time California had a housing crisis was
2007-2008, when housing prices plummeted due to sub-prime mortgages. Many families were
bankrupted.
The second paragraph states that Santa Clara County is projected to add 169,450 jobs, but
again there is no reference to where the projection originated. My understanding is that
California lost population in the previous several years
(https://www.macrotrends.net/states/california/population (External link)), and that Santa
Clara county population has declined since 2020. Also some large companies such as Charles
Schwab, Tesla, HP, Oracle have relocated their headquarters out of state. Moreover, the advent
of work-at-home has resulted in workers relocating to lower cost states. So I am very skeptical
that population will continue to increase as in the past.
In my opinion, historically low interest rates in the previous few years resulted in excessive
housing demand. The real housing crisis is likely to be a repeat of 2007-2008, which we are
already starting to see as increasing interest rates cause a recession and falling house prices.
Adding more housing will make the crisis worse, as it did in 2007-2008.
I find the final paragraph is really puzzling. When I moved to Los Gatos in 1983, it was highly
segregated, indeed many neighborhoods built before 1963 excluded racial minorities from
home ownership. It is right to condemn those bad old days. But times have completely
changed, my neighborhood, and Los Gatos as a whole is highly integrated now. There is no
problem to solve here.
10.1.2
Same comments as the previous section, I am highly skeptical of the projected increase in
households. The actual data from last year indicates California’s population is declining
(https:// www.macrotrends.net/states/c alifornia/population (External link)).
At least here there is a reference to where the data came from, but I don’t believe the data.
10.1.3 Affirmatively Furthering Fair Housing
I don’t understand how California is supposed to enforce replacement of segregated living
patterns with integrated living patterns. Will Cupertino be forced to kick out Chinese residents?
It’s an unfortunate part of human nature that many people prefer to live in neighborhoods with
their affinity groups. I’m not one of them, I like the melting pot and oppose multiculturalism,
but I also believe in freedom of association. Based on the racial make-up of my neighborhood,
I’m very skeptical of the statement that “racial segregation in Los Gatos increased between
2010 and 2020”. Los Gatos is a model community for racial integration.
Comment Letter #5
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 22
Ironically, when I went to college at Cal in the 1970s, the student Co-op where I lived was
completely integrated. Now, if you visit the Berkeley Student Co-op website, you will find that
many of the Co-op houses have “themes”, such as people-of-color, and LGBT, and students are
encouraged to segregate themselves to live with their affinity groups. O brave new world, that
has such people in it! Segregation has become fashionable again.
10.1.4 Overview of Planning and Legislative Efforts
I’m sorry my feedback to the general plan was not adopted by the Town Council. Most
importantly, the vast expansion of housing adopted by the general plan flies in the face of
sound city planning practice, and will result in environmental destruction and a deterioration of
the quality of life in Los Gatos and throughout the bay area. An environmentally sensitive plan
would have advocated to decrease the population of outlying suburbs with no access to public
transportation, such as Los Gatos, and to increase the population density within 1km of mass
transit hubs, such as Cal Train stations. This is how planning is done in Japan (where my wife
and I have a second home). Most of the northeastern states, such as New York, historically
have very low population densities once you leave the big cities, California was built out as a
continuous suburb. We need to make California look more like Japan or New York. The Los
Gatos general plan doubles down on the environmentally unsustainable continuous suburb
model.
I understand the California legislature has mandated certain housing policies, but the solution
is to push back by banding together with other outlying suburbs and rural communities to fight
environmentally destructive mandates.
Of course Los Gatos is segregated from other communities by income. Los Gatos is a luxury
brand, with vacant lots running over $1 million. Forcing low income housing into Los Gatos is
like asking Daimler Benz to build an economy car, their cost structure doesn’t allow it. Los
Gatos land costs can’t sustain low cost housing. You don’t need to travel far from Los Gatos to
get to areas with lower land prices, for example, Santa Clara, San Jose, Morgan Hill, Milpitas.
Finally, building high-density low-income housing in Los Gatos will violate the original
covenants and restrictions on existing housing and degrade its value. I view the covenants and
restrictions as a contract I signed onto when I bought my house. I don’t see any proposal in
this document to compen sate existing residents for degrading their property values. Again, the
town needs to push back against legislative mandates that don’t make sense.
10.1.5 Public Participation
Public disclosure of new regulations by the Town Council is inadequate. Many residents do not
subscribe to social media, do not read newspapers, shop at Safeway rather than at the
farmer’s market, and avoid using the internet as much as possible. For instance, my neighbor
bought a gas leaf blower one week before the town banned them. A proper form of disclosure
is by USPS, every resident needs to receive a hard-copy in the mail.
But more importantly, when radical proposals that completely and irrevocably change the
town’s character are proposed, the citizens of the town should be given an opportunity to vote.
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 23
This was not done with the 2040 General Plan.
10.2 Overview of Housing Need and Constraints
This section is largely repeating and expanding on what was already written in the previous
section. My comments above apply.
10.2.6 Special Housing Needs
This section is mostly free of data, and what little data is presented lacks citations.
I’m a senior, but I question the section about senior household affordability. My understanding
is that seniors are the wealthiest Americans
(https://www.lexingtonlaw.com/blog/finance/average -net-worth-by(External link)- age.html).
Seniors also benefit from Medicare, Social Security, Prop. 13 property tax reductions, and
senior discounts.
The section on homelessness lacks data, and the reasons stated for homelessness are wrong.
My understanding of the homeless crisis in California, as documented in Michael
Shellenberger’s book San Fransicko, is that it is almost entirely a crisis of drug addiction and
untreated mental illness. Organizations advocating personal liberty such as the ACLU, together
with progressive prosecutors, have made it impossible to solve the homeless crisis. Open
borders have increased the supply of Fentanyl. And it is a real crisis: in San Francisco more
people died of drug overdoses than Covid in the last two years.
10.4 Energy and Resource Conservation
Solar roof panels are not a means of reducing energy costs. Considering the maintenance and
depreciation, I believe (I am an electrical engineer specializing in semiconductor physics) they
generating very expensive power. If the town really believes solar roof panels are a good
investment, then the numbers should be presented in this document. Although I am an SVCE
customer, and own an electric car I have not experienced any reduction of my power costs.
Indeed, California has some of the most expensive power in the US.
The figures touting 99% reduction in utility-related emissions by providing clean energy are
patently false. When the energy required to manufacture solar panels is accounted for and
amortized over their life, and recognition of the fact they are manufactured in China using high-
carbon coal power, the numbers are nowhere near as good. Moreover, solar power is not
generated during the peak demand period between 4PM and 9PM. Back-up power capital
equipment needs to be kept on-line, and that adds to the cost. Failure to do so has led to
California’s current energy crisis, and caused my electric car to be charged with out-of-state
coal power brought in to alleviate the crisis.
A better way and less expensive way to reduce power costs is to install a light colored roof,
insulate your attic, and plant deciduous trees to shade your house. Fenestration should be
minimized. I notice that most houses being remodeled these days are styled as retro mid-
century modern with black roofs and huge windows, which is very bad from an energy
efficiency standpoint.
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 24
California has shut down two of its three nuclear plants in the last few years, with Diablo
Canyon scheduled to be taken off-line in 2024-2025. The result is an increase in the proportion
of carbon- spewing power generation, and higher energy costs from renewables. According to
Wikipedia, Diablo Canyon generates electricity at six cents per kW hour, one fourth of what I
pay for so-called SVCE clean power. And nuclear generates power 24/7.
10.5 Goals, Policies, and Implementation Programs
Basically, I oppose almost all of the policy recommendation in this section. Here are my
proposed replacement policies.
1. The town should advocate for the state to electrify CalTrain and eliminate all grade
crossings. The money saved from killing the bullet train can be reallocated for this project.
Once Caltrain is electrified, San Jose to San Francisco is a 30 minute commute (electric
express trains without grade crossings can travel at 80 MPH). California is way behind on
electric commuter trains.
2. The town should recommend a 1km circle centered around each major CalTrain station be
re-zoned for ultra-high-density housing. The entire housing needs of San Mateo and Santa
Clara county can be met for many years. People can walk to train stations in five minutes,
eliminating the need to expand freeways. Similar zoning changes would be beneficial for
BART.
3. Towns and suburbs not served by mass transit hubs should be encouraged to down-size or
remain stagnant to alleviate the burden on highways and reduce car-miles, exactly the
opposite of what the town is currently advocat ing.
4. The town should request that Diablo Canyon not be closed. San Onofre nuclear power
station decommissioning should be stopped immediately, and the power station should be
rebuilt and brought back on line. Third-generation nuclear power stations should be built to
replace windmills and photovoltaics, which are not viable sources of carbon -free power.
Reasons for advocating this position can be found in Michael Shellenberger’s book
Apocalypse Never.
5. The town recognizes that the VTA light rail system is a failure. It is slow, expense, unreliable,
doesn’t stop near your office or home, and needs to be fixed or dismantled. Google buses are
an alternative. The town should recommend to study how to get people to work without cars.
Bicycles are not a good option.
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 25
Response to Comment #5
The public comment includes multiple topics, including: projected housing; racial segregation; planning
and legislative efforts; public participation; quality of data; energy conservation; and goals, policies,
and programs. However, most of the suggested changes are either: not within the Town’s authority;
not consistent with the Town’s 2040 General Plan Vision and Guiding Principles; not aligned with the
stated goals for Affirmatively Furthering Fair Housing (AFFH); or would not result in a greater likelihood
of housing production for the next eight-year cycle. Therefore, no changes to the Draft Housing
Element were included in response to these comments.
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 26
Comment Letter #6
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 27
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 28
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 29
Comment Letter #6 Attachment #1
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 30
Response to Comment #6
• Downtown site additions to Site Inventory
o The HEAB discussed this subject at a public meeting and collectively determined to continue
moving forward with the Downtown sites in the Draft Site Inventory as recommended by the
HEAB.
o The bank sites located in the Downtown on Santa Cruz Avenue Areas, and referenced with this
comment, were placed in the Town’s third tier of potential sites based on their gross lot area of
less than half an acre and because the Town has not received any Property Owner Interest
Forms for residential development on those sites.
• Recent changes to State laws
o The Town is committed to learning more about recent changes to State laws and how these
may impact the Town zoning and contribute to opportunities for affordable housing
construction and will incorporate them when appropriate.
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 31
Comment Letter #7
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 32
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 33
Response to Comment #7
• Site Inventory, typical density
o The Housing Element Sites Inventory Form located in Appendix H and the Overview of Selected
Sites located in Appendix D have been updated utilizing the typical density identified in 2040
General Plan Residential Buildout, rather than the maximum allowed density.
• High number of affordable units assigned
o The Town acknowledges the property owner’s concern with the proposed estimated income
distribution and capacity estimate for the sites. This is an estimate and has been modified in
response to comments received.
• No Net Loss Law
o The Town acknowledges that there is a concern by property owners that they will bear the
required burden of the No Net Loss Law. However, per Government Code section 65863, the
No Net Loss Law requires a jurisdiction to maintain a sufficient supply of adequate sites in its
Housing Element at all times throughout the Housing Element planning period to meet a
jurisdiction’s remaining unmet share of the RHNA for each income category. To comply with
the No Net Loss Law, jurisdictions must ensure their actions do not create a shortfall of
available sites. When making decisions regarding zoning and land use (e.g., downzoning)
and/or when approving housing development projects, jurisdictions must assess the impacts
those actions have on their ability to accommodate new housing on the remaining sites in their
Housing Element Site Inventories. If, at any time during the planning period, the jurisdiction
finds that their remaining sites are insufficient to accommodate its remaining RHNA, the
jurisdiction must take immediate action to correct the shortfall by amending its Housing
Element Sites Inventory to increase capacity by either adding previously unidentified sites or
rezoning remaining sites to correct for the shortfall. If a development is approved at a lower
density or income distribution than what was assumed in the Sites Inventory of the Housing
Element, No Net Loss Law requires a jurisdiction to make written findings and identify
additional site capacity. The No Net Loss Law is not the responsibly of the property owner.
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 34
Comment Letter #8
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 35
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 36
Response to Comment #8
• Production of below market rate housing units
o The Town recognizes the historic challenges of producing below market rate housing units
within the Town. One of the primary purposes of this update of the Town of Los Gatos Housing
Element is to increase production of below market rate housing. Goal HE-2: “Provide New
Affordable Housing” is supported by 12 policies and numerous implementation programs.
• Defining affordable housing
o The Town utilizes the Department of Housing and Community Development (HCD)’s definition
of affordability housing thresholds through the income categories assigned through Town’s
RHNA. HCD with input from the Association of Bay Area Governments (ABAG), and
Metropolitan Transportation Commission (MTC), determined the total RHNA for the 2023-2031
period. On December 16, 2021, the ABAG Executive Board adopted the Final RHNA Plan: San
Francisco Bay Area, 2023-2031. Los Gatos's allocation is 1,993 units, which is broken down by
income category, as shown in the table below:
Income Group Number of Units
Very Low (0-50% AMI) 537
Low (50-80% AMI) 310
Moderate (80-120% AMI) 320
Above Moderate (120%+ AMI) 826
TOTAL = 1,993
*AMI is Area Median Income
• Accessory Dwelling Unit incentive program
o See response to Comment #2, Accessory Dwelling Unit Incentive Program.
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 37
Comment Letter #9
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 38
Response to Comment #9
The recently adopted 2040 General Plan includes numerous goals, policies, and implementation
programs to increase access to alternative transportation modes throughout Town. These comments
do not raise an issue with the Draft Housing Element; therefore, no changes to the draft Housing
Element are necessary.
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 39
Comment #10
# 4
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 40
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 41
Response to Comment #10
• Site D-1, maximum allowable density and maximum number of housing units
o Site D-1 has been updated to reflect a maximum of 461 units at a minimum density of 30
dwelling units per acre (Appendix D and Appendix H). Implementation Program D includes
amending the North Forty Specific Plan to increase the maximum allowable density from 20
dwelling units per acre to 30 dwelling units per acre and increase the total number of dwelling
units allowed in the Specific Plan (Sites D-1, D-2, D-3, D-4, D-5, D-6 and D-7) as discussed in the
update process for the 2040 General Plan.
• Meeting affordability requirements
o The distribution of affordability levels in the Site Inventory is an estimate prepared based on a
combination of factors including lot size; vacancy; property owner interest; minimum and
maximum density; and other development regulations. The Site Inventory includes a 15
percent buffer to allow flexibility in consideration of development proposals without triggering
the No Net Loss provisions of State law. In addition, please see Response to Comment #7, No
Net Loss Law.
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 42
Comment Letter #11
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 43
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 44
Response to Comment #11
• Increase density for the Affordable Housing Overlay Zone (AHOZ)
o Program BE increases the density of the AHOZ Overlay Zone from 20 to 40 dwelling units per
acre.
• Enable SB-9 projects in excess of minimum State standards
o The Town is currently in process to update their SB 9 regulations to implement as a permanent
ordinance with clear standards and processes which comply with State law and include
provisions in excess of the minimum required, for example, allowing an additional 10 percent
FAR for use by the first primary housing unit developed through a Two Unit Housing
Development application to encourage these additional housing units.
• Reduce permit process time
o The Draft Housing Element includes,
Policy HE-3.1 Regulatory Incentives for Affordable Housing: Facilitate the development of
affordable housing through regulatory incentives and concessions, and/or financial
assistance. Continue expediting the permit processing system for affordable residential
development applications and proactively seek out new models and approaches in the
provision of affordable housing.
Policy HE-3.3 Efficient Development Processing: Explore continued improvements to the
entitlement process to streamline and coordinate the processing of permits, design review,
and environmental clearance.
Implementation Program F: Update Permit Software System to better monitor average
processing times for ministerial and discretionary development permits. Use data to set
baselines timelines to drive improvements. Update the Town planning and zoning
regulations and remove permit processing constraints as appropriate.
Implementation Program M: Lot Consolidation: The Town will conduct outreach to property
owners in these areas to identify meaningful incentives to facilitate lot consolidation, lot
assemblage and redevelopment in mixed use and commercial areas. Based on this
feedback, within two years of Housing Element adoption, the Town will consider the
development of a Lot Consolidation Ordinance to include specific incentives such as:
flexible development standards such as reduced setbacks, increased lot coverage, increased
heights, reduced parking, and reduced fees. Streamlined permit processing through
administrative staff review. Upon adoption of the Ordinance, the Town will work with
property owners that are receptive to lot consolidation/lot assemblage to assist them in
facilitating the parcel merge process in a streamlined and timely manner.
Implementation Program AD: Special Needs Housing: Prioritize special needs housing by
allowing for reduced processing times and streamlined procedures for applicable
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 45
zoning/land use applications. Include preferential handling of special needs populations in
management plans and regulatory agreements of funded projects.
Verbal Draft Housing Element Comments
Verbal comments were received on the Draft Housing Element at a HEAB meeting held on Thursday,
September 15, 2022, via Zoom. The verbal comments and responses to those comments are
presented below.
Verbal Comment #1 Mitch Vinciguerra
The speaker stated three standards that should be included in the Housing Element including: labor
standards; healthcare standards; and apprenticeship program standards. The speaker suggested labor
standards be implemented to ensure developers are paying area standard wages so skilled workers can
afford to live in the local community. Additionally, the speaker emphasizes the value of local hiring to
ensure money generated by new developments stay in the community in the form of sales and
property tax revenue. Secondly, the speaker touched on workers’ reliance on emergency rooms
resulting in taxing an overburdened system. Lastly, the speaker suggested the use of apprentice
programs to assist individuals in obtaining employment at no cost to taxpayers.
Response to Verbal Comment #1
Many of these topics are part of State laws recently enacted or currently under consideration. The
Town will comply with State law. These comments do not raise an issue with the Draft Housing
Element; therefore, no changes to the Draft Housing Element are necessary.
Verbal Comment #2 Susan Burnett
The speaker stated concerns regarding the number of proposed units for the Downtown Area and
existing congestion. The speaker noted that an increase of housing units is likely to result in
exacerbated parking, traffic, and overall density challenges in an already small, congested area.
Response to Verbal Comment #2
The Housing Element Advisory Board (HEAB) discussed this subject at a public meeting and collectively
determined to continue moving forward with including these sites on the Site Inventory List as
accepted by Town Council.
Verbal Comment #3 Brian Handy
The speaker stated two concerns including: potential health impacts associated with the proximity of
proposed housing sites to major roadways; and the privacy and protection of backyards for multi-story
buildings.
Responses to Verbal Comment #3
While there are trade-offs for housing opportunity locations, several factors have been considered
through the site selection process, including locations that have existing infrastructure and access to
Los Gatos Response to Public Comments
October 2022 2023-2031 Housing Element Comment Response 46
services, even though those locations are often near major roadways. On June 7, 2022, the Town
Council accepted the draft Site Inventory as recommended by the HEAB. The Site Inventory has since
been modified based on the receival of a new Property Owner Interest Form and a request to be
removed by a property owner. The International Building Code includes some requirements that
mitigate effects of buildings in close proximity to highways, including maximum noise standards.
Objective Design and Development Standards can be a tool for local communities to affect future land-
use compatibility in the built environment, and the Town is currently in the process of developing
Objective Standards for multi-family and mixed-use developments which includes standards related to
privacy.
Modifications to the Draft Housing Element in Response to Public Comments
Pursuant to AB215, following the 30-day public comment period, the public comments received by the
Town were considered during the 10-day consideration and revision period prior to the Housing and
Community Development (HCD) submittal for first comments.
The following modifications were made to the Town’s Draft Housing Element in response to public
comments:
• Added Implementation Program BH – Provide Adequate Sites for Lower Income Households on
Nonvacant and Vacant Sites Previously Identified in the 5th Cycle Housing Element;
• Revised the housing density for the Site Inventory to be consistent with the typical density
identified in the 2040 General Plan Residential Buildout;
• Increased the density within the North Forty Specific Plan area to align with the related
Implementation Program D;
• Increased the density within the Affordable Housing Overlay Zone (AHOZ) to align with the related
Implementation Program BF; and
• Corrected employment characteristics.
350 W. Julian Street, Building 5, San José, CA 95110
408.780.8411 • www.svathome.org • info@siliconvalleyathome.org
September 30, 2022
Submitted via email
Mayor Rennie and Councilmembers
Town of Los Gatos
110 E. Main St.
Los Gatos, CA 95030
Dear Mayor Rennie, Vice Mayor Ristow, and Councilmembers Badame, Hudes, and Sayoc:
RE: Housing Element
The 6th Cycle Housing Element Update process is a unique opportunity to fully assess
housing needs in Los Gatos and to identify new tools to address these needs and constraints
on developing housing. This process is also an opportunity to engage deliberately with the
full community to share their housing needs, especially those who are represented from
populations that have been historically excluded and are at risk of displacement. This
unique opportunity is one that is required to adhere to the clear legal guidance as outlined
by HCD in multiple documents interpreting state law.
This is not a simple process, and we appreciate the work that the Town of Los Gatos
(hereon as the Town) staff, elected and appointed representatives, and members of the
community have done over the last 9-12 months. As you know, however the expectations
for this process are high, and jurisdictions throughout the state have struggled to generate
compliant housing elements for this cycle.
During this comment period on the current draft, there is still time to receive public input
and address concerns prior to submission of the Housing Element Update to the state.
Towards that end, SV@Home is submitting the following comments.
Outreach, Community Input, and Targeted AFFH Engagement as the Foundation of the
Housing Element Update Process
Los Gatos has invested a wealth of energy and effort into the General Plan Task Force and
Update process that began before, and overlapped with the Housing Element Update. The
new General Plan captures the City’s commitment to equitably meeting the needs of all its
residents, including taking action to rectify past racial injustice. The General Plan planning
process garnered significant public interest, and a successful Task Force led process. This
was a significant accomplishment, and foundation for the Housing Element Update process,
but the Housing Element requires a different assessment of needs and a qualitatively
different process of community engagement.
Although the Draft Housing Element documents that many groups were invited into the
process, it is not clear which of these stakeholder groups participated, what insights they
shared about the housing needs of their constituents, or the housing solutions they
proposed. Additionally, it is notable that no contact is listed for organizations representing
people with physical, intellectual, or developmental disability. We also have questions
Board of Directors
Kevin Zwick, Chair
United Way Bay Area
Gina Dalma, Vice Chair
Silicon Valley Community
Foundation
Candice Gonzalez, Secretary
Sand Hill Property Company
Andrea Osgood, Treasurer
Eden Housing
Shiloh Ballard
Silicon Valley Bicycle Coalition
Bob Brownstein
Working Partnerships USA
Amie Fishman
Non-Profit Housing
Association of Northern CA
Ron Gonzales
Hispanic Foundation
of Silicon Valley
Javier Gonzalez
Google
Poncho Guevara
Sacred Heart Community
Service
Janice Jensen
Habitat for Humanity
East Bay/Silicon Valley
Janikke Klem
Jan LIndenthal
MidPen Housing
Jennifer Loving
Destination: Home
Mary Murtagh
EAH Housing
Chris Neale
The Core Companies
Kelly Snider
Kelly Snider Consulting
Jennifer Van Every
The Van Every Group
STAFF
Regina Celestin Williams
Executive Director
ATTACHMENT 3
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RE: Housing Element
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350 W. Julian Street, Building 5, San José, CA 95110
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about how adequate the targeted outreach was to tenants. Affirmatively Furthering Fair Housing (AFFH) requires
jurisdictions to do targeted outreach to groups that generally do not access traditional public venues, or receive
notifications through commonly used channels. The responsibility for robust and meaningful two-way engagement
with all stakeholders goes beyond simply inviting them into the existing process.
We recommend that the Town take the opportunity to reengage and expand on prior community
engagement efforts to facilitate a meaningful two-way engagement with all stakeholders to collect
input on the current Draft. This process should include a thorough documentation of prior input on
housing needs and proposed solutions and a clear record of input received through this additional
engagement. These discussions should more clearly inform the housing needs assessment, the
constraints analysis, and the policies and programs proposed in response.
The Draft states that the data packet supplied by ABAG was the basis for decisions about housing goals, policies, and
implementation programs. This approach fails to meet the central expectation of the Housing Element Update process
to integrate a process of consultation and reengagement with the community to fully understand and respond to their
housing needs. HCD’s guidance documents clearly require substantive incorporation of local knowledge into
jurisdictions’ foundational understanding of their residents’ housing needs, and policies and programs to be
responsive to those needs. This is the purpose of the requirement for robust outreach and engagement. We believe
much of this local perspective has been collected.
We recommend that the Town reassess the components of the Housing Element to integrate local
knowledge gained through robust outreach and community engagement along with data as the
foundation for decisions about housing goals, policies, and implementation programs.
Los Gatos’ recently adopted General Plan demonstrates that there is real momentum and community support to
address racial injustice, but concrete policies and programs to build on this discussion and respond to the real
community interest have not been identified in the Housing Element process. Without an articulation of the
connection between policy goals and racial segregation or disproportionate housing need for protected classes, the
community’s intent cannot translate into change. It would be tragic, and a real missed opportunity, for less to come of
that work than it deserves.
We recommend that the Town identify and clearly articulate the connection between policy goals and
implementation programs, and racial segregation or disproportionate housing needs for protected
classes.
Anti-displacement Policies and Programs to Affirmatively Further Fair Housing
The Town is in a unique position of having an existing landlord/tenant mediation and arbitration ordinance. The rent
dispute ordinance applies to rentals on properties of 3 or more units and on rent increases at 70% of CPI or 5%.
Increases below 5% are considered valid and cannot be disputed. A landlord seeking an increase above 5% must justify
the increase if disputed with “pass-through” and other operational costs, but would be capped at 10%. This is a
program that is contracted out to Project Sentinel. We are pleased that the continuation of this program has been
included in the current Draft Housing Element document. However, we are unaware of any assessment of the success
of this ordinance. We generally have found that mediation and arbitration programs have a limited impact on
preventing displacement, but do acknowledge that the ordinance is unique. We believe that the protections extended
September 30, 2022
RE: Housing Element
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350 W. Julian Street, Building 5, San José, CA 95110
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under the existing ordinance should be augmented through additional programs or policies, to provide stability to
tenants.
Earlier this year, SV@Home sent a letter outlining anti-displacement policies the Town could adopt to affirmatively
further fair housing (AFFH). Some of the policies that SV@Home discussed include:
• Rent Survey Program: this will enable metrics for the Town to determine the efficacy of the mediation and
arbitration ordinance, identify patterns of displacement, and consider effective policies to address the needs
identified;
• Tenant Relocation Assistance: this program can help bridge the gap of moving expenses if a tenant is evicted
for a no-fault cause, such as the redevelopment of an existing rental community. It can also serve as a tool to
mitigate the costs of displacement prompted by a rent increase above a fixed percentage; and
• Tenant Resource Center: this program would help the Town achieve its stated goals of reaching more
displacement-impacted populations to ensure they have access to the services they need (i.e. the existing
rental assistance) while creating a safe location for tenants and landlords to access the mediation and
arbitration ordinance, and other policies and programs as they are developed.
We recommend that the Town of Los Gatos build upon its existing mediation and arbitration
ordinance to add policies such as a rent survey program, tenant relocation assistance, and a tenant
resource center. A clear timeline and process for development of these, or other renter protections,
should be set to ensure that the impact will be measurable within the 6th Cycle.
The Town is proposing policies to acquire both private market housing and subsidized housing with expiring
affordability restrictions. This would require significant financial resources for acquisition and rehabilitation, and we
do not find an explicit mechanism to provide these resources in the current Draft. In our earlier correspondence
outlining potential anti-displacement policies to fulfill AFFH requirements, we noted the potential to build a robust
preservation program around a Community Opportunity to Purchase Act (COPA).
We recommend that the Town of Los Gatos outline a strategy for expanding local affordable housing
development resources. This strategy should begin with a clear list of options to consider, a target
goal for funds to be generated, and a timeline for implementation as required.
Meeting RHNA Levels and Housing Opportunity Sites Inventory
The Town’s updated General Plan was a significant undertaking, and we believe a turning point in the approach that
Los Gatos takes towards responding to the housing needs of the Town and its role in the region. Los Gatos is a net
importer of employees. The new General Plan outlines significant steps to increase the number of new homes in the
Town, including significant changes to land use designations that will allow for increased densities and the
construction of multi-family housing. Much of this detailed land use work remains in progress, but we are confident
that the plan will be implemented.
Based on our initial analysis we have concerns with the Town’s Sites Inventory. These are described below.
Insufficient Density in North 40 Specific Plan Area and Throughout the Sites Inventory
We are pleased to see that the Town will accommodate roughly 12 percent of its lower-income capacity to the North
40 Specific Plan area. Although there have been ongoing community discussions about this important specific plan, we
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RE: Housing Element
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350 W. Julian Street, Building 5, San José, CA 95110
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are aware of the richness of the area and the community’s intent to celebrate its agricultural heritage and hillside
views. We acknowledge the Town's efforts to balance the area’s small town history and character with the local, and
regional importance of increased residential density and affordable housing in the decade ahead. We are concerned,
however, that the North 40 Specific Plan’s N-40 zoning designation only allows for between 13 and 22 dwelling units
per acre, which is well below the required Mullin density minimum of 30 dwelling units per acre per HCD’s Housing
Element Sites Inventory Guidebook.
In fact, approximately 63 percent of lower-income sites in the entire inventory currently do not meet this minimum
density requirement. We know that under the recently adopted General Plan update there are significant plans to
upzone portions of the Town, nonetheless, we are concerned that there will remain sites zoned at lower densities
than required.
We recommend that the Town rezone all lower-income sites zoned with densities under 30 dwelling
units per acre to allow for the HCD-required minimum density of 30 dwelling units per acre.
Overstatement of ADU Production Expectations
Appendix D estimates that 200 new ADUs will be built during the RHNA cycle, and that 40 percent of these (80 ADUs)
will count towards the Town’s lower-income obligations. This amounts to over 9 percent of the total combined very-
low and low-income units, and just under 20 percent of the total low-income category alone.
These forecasts are likely based on the ADU calculation methodology provided to Bay Area cities by the Association of
Bay Area Governments (ABAG). While we understand why cities are using this guidance in their Housing Element
planning process, we believe that this methodology is flawed in two ways: 1) it assumes significantly lower rents than
unpublished local studies have shown and we have found in our analysis that the ABAG methodology subsequently
credits far more units to affordable goals than is warranted, and 2) it assumes that all ADUs are used as primary
residences, rather than home offices, guest rooms, or play spaces for children. Together, these failings lead to a
significant overstatement of ADU impact.
Policies HE-1.7, HE-2.6, and HE-6.5, together with program U, are intended to incentivize with minimal public subsidy
the production of lower-income ADUs to meet RHNA targets. We acknowledge the Town’s plan to waive building
permit fees for deed-restricted lower-income ADUs under program U. However, Program U, including all the
aforementioned ADU-related policies need to be assessed for their potential effectiveness, analyzed against current
and past development trends, and incorporate input from single-family homeowners. Without this, the effectiveness
of the proposed policies and programs are uncertain.
We recommend that the Town schedule an analysis to adequately assess the projected lower-income
ADU production and that a system for tracking ADU production and rents be incorporated into annual
HE reporting. This would allow for adjustments in current assumptions and provide an opportunity to
assess the impact of the proposed policies.
We do note the inclusion of the General Plan land use policy 1.2, as an important step towards facilitating increased
intensity of existing land use patterns. This is an important commitment given the nature of residential areas in the
Town, and would similarly benefit from a scheduled review of its impact.
September 30, 2022
RE: Housing Element
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350 W. Julian Street, Building 5, San José, CA 95110
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Methodology and Supporting Analysis of the Sites Inventory Fail to Conform to HCD Standards
The Housing Element Sites Inventory Guidebook produced by HCD, along with supplemental resources provided by
the Association of Bay Area Governments have a number of requirements and recommendations for lower-income
sites. These requirements are very specific for non-vacant parcels identified as lower-income opportunity sites.
Although we found detailed descriptions of several non-vacant sites, and we acknowledge the important effort
undertaken through the General Plan process, we believe the draft does not meet key requirements including:
1. Include an explanation of the methodology used to select sites and their development potential;
2. Provide substantial evidence that indicates existing non-residential use will be discontinued or will not be an
impediment to future residential development;
3. Demonstrate that there is clear developer interest in redeveloping each site, including consolidating parcels
for housing, within the planning period;
4. Clearly describe how the realistic capacity calculations were used to determine the number of units that can
be reasonably developed on a site, and
5. Incorporate potential constraints (e.g. environmental, parking, open space, parcel shape etc.) into the
inventory’s realistic capacity calculations consistent with the Guidebook.
Given the absence in the draft of alternative approaches to addressing these requirements, these details need to be
provided on a site-by-site basis in the Sites Inventory.
We also note that approximately 24 percent of the new sites (totaling 211 units) identified for lower-income capacity
are projected to accommodate fewer than 50 units. According to the Housing Element Sites Inventory Guidebook,
lower-income sites that do not have 50 to 150 units make them less competitive for State and Federal resources to
build affordable housing. The viability of financing affordable housing is of utmost importance. If the reasonable
likelihood of adequately funding sites for lower-income units is low, then they should either have their realistic
capacity assumptions heavily discounted across the inventory, or be removed from the Sites Inventory and be
replaced with sites that could accommodate 50-150 unit developments.
We do acknowledge that the Town has prioritized an effort to expand the number of larger, two- and three-bedroom,
affordable apartments to support the needs of families. This is an important commitment, even if it may mean fewer
apartments in total.
We recommend the Sites Inventory provide a more comprehensive site-specific analysis as described
above. We also suggest either heavily discounting the realistic capacity of sites that would produce
less than 50 lower-income units or identifying alternative sites that would produce 50 or more
affordable units so that they can be more competitive for external funding.
Governmental and Non-Governmental Constraints
The Constraints Assessment in the current Draft generally describes the Town’s development review processes and
standards rather than providing the required analysis of their cumulative impact on the supply and affordability of
housing. For example, there are of course a full menu of taxes and fees which may vary significantly, making it difficult
to assess their impact on the costs to development. There are also significant off-site improvement requirements that
are costly. The cumulative impact of these factors, and other administrative processes, should be assessed as a
potential governmental constraint on development. Market rate development in Los Gatos benefits from very high
September 30, 2022
RE: Housing Element
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350 W. Julian Street, Building 5, San José, CA 95110
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rents and sales prices well above the county average, but as the Town commits to supporting affordable housing, the
impact of additional costs will be significant.
We recommend that the Town conduct a more detailed assessment of the cumulative costs of
governmental constraints and set a schedule for implementing the proposed fee waivers, or other
concessions, for affordable housing developments.
We are encouraged by the proposed designation of an “Affordable Housing Overlay Zone.” This tool is very targeted,
however, covering a single property. We expect it will facilitate the development of this property as intended.
Expanding the overlay zone to other sites in the inventory could greatly enhance other efforts to meet the State’s
AFFH guidance to support the development of affordable housing throughout the community. Affordable housing
developments struggle to compete with market rate development in jurisdictions like Los Gatos, and AHOZs provide a
targeted mitigation of this market constraint.
We recommend the expansion of the Affordable Housing Overlay Zone to additional parcels identified
in the inventory.
It cannot be understated how important the State Density Bonus law will be for the Town to reach its housing goals.
While we acknowledge and support The Town’s plan to evaluate its own Density Bonus Program, it may be far more
efficient to adopt the State Density Bonus program as a local ordinance to avoid confusion. We are concerned that the
proposed time frame to conduct the study and adopt recommendations covers nearly the entire planning period,
which greatly limit its impact during this cycle.
We recommend the local adoption of the State Density Bonus program parameters and a
consideration of additional incentives within a shorter timeline.
Lastly, we believe the Town missed an opportunity when it did not conduct a full assessment of the development
review and approval process. In recent years there has been very little residential development in Los Gatos. The plan
is to significantly increase development, and this is a moment of opportunity to assess and review current practices to
take steps to be prepared for this change. We have found that the pre-application process has become a more
significant barrier given the role of State streamlining laws in shaping the process and timeline for entitlements
following a completed application.
We recommend a complete analysis of the development approval process, including the creation of a
pre-approval process and timeline.
Overall, SV@Home recognizes the work of the Town of Los Gatos to craft policies and programs focused on housing
production that reflect the vision of the General Plan and the RHNA requirements. The concerns and
recommendations outlined above will strengthen the efforts The Town of Los Gatos has made and ensure its success.
September 30, 2022
RE: Housing Element
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350 W. Julian Street, Building 5, San José, CA 95110
408.780.8411 • www.svathome.org • info@siliconvalleyathome.org
SV@Home values its partnership with the Town of Los Gatos and it is in that spirit that we provide our feedback on
the Draft Housing Element. We welcome the opportunity to engage in an ongoing dialogue as the Draft Housing
Element moves through cycles of review and revision, with the shared goal of addressing the Town’s urgent housing
need by boosting production of homes at all income levels, preserving existing affordable homes, and protecting the
families in them.
Sincerely,
Regina Celestin Williams
Executive Director
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