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DeskItem.Housing Element Update and Next Steps PREPARED BY: Jocelyn Shoopman and Erin Walters Associate Planner and Associate Planner Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Community Development Director, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 12/20/2022 ITEM NO: 13 DESK ITEM DATE: December 20, 2022 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Discuss the Housing Element Update and Provide Direction on Next Steps. REMARKS: The following questions and responses provide additional information. Reponses to each question are provided below in italics: • Bay Area jurisdictions may use a minimum density of 30 units/acre (“default density”) in order to count a site as providing affordable housing units. What happens if a project goes forward at 30 units/acre and it is not 100 percent affordable? The Town’s Site Inventory does not assume 100 percent affordability for any of the sites. If the Town approves a development of a parcel identified in the sites inventory with fewer units than shown in the Housing Element, it must either make findings that the Housing Element’s remaining sites have sufficient capacity to accommodate the remaining unmet Regional Housing Needs Allocation (RHNA) by each income level, or identify and make available sufficient sites to accommodate the remaining unmet RHNA for each income category. The RHNA buffer has been included to address the potential for No Net Loss. In addition, the Town has an inclusionary zoning ordinance which requires that a portion of the new residential construction in Los Gatos be dedicated to affordable housing. • Moving forward with Housing Element adoption could potentially use two of our four General Plan amendments for the year for this Element. What other amendments might we anticipate? Can other amendments be bundled if necessary? State Law limits General Plan amendments to four per year for each of the required General Plan Elements. The Housing Element may be amended up to four times per year without reducing the number of amendments allowed for other General Plan Elements. Currently, PAGE 2 OF 3 SUBJECT: Housing Element Update and Next Steps DATE: December 20, 2022 REMARKS (continued): staff does not anticipate additional amendments to the Housing Element with the exception of required amendments addressing HCD’s comments for this 6th cycle Housing Element update. If additional amendments to the Housing Element are necessary staff would look to bundle modifications as a single amendment if possible. • How many Builder’s Remedy projects have occurred outside of the City of Santa Monica? 16 new housing projects were submitted in the City of Santa Monica under the Builder’s Remedy primarily by a single development firm. According to YIMBY Law, additional applications have been received by Manhattan Beach, Cerritos, Redondo Beach, Del Mar, Pasadena, and Beverly Hills. • How did the initial conversation with the HCD reviewer go and was the referendum discussed? The initial conversation with the Town’s California Department of Housing and Community Development (HCD) reviewer covered topics staff had anticipated and that are presented in the staff report. The HCD reviewer asked for clarification on the referendum to repeal the Land Use and Community Design Elements of the 2040 General Plan. Staff provided clarification and called attention to the Housing Element’s Implementation Programs BF and BG. These Implementation Programs would include amendments of the Zoning Code and General Plan for the sites that are included in the Site Inventory so that the referendum would not be considered a constraint on the housing production described in the Housing Element. Staff provided clarifying information to the HCD reviewer on where information is already provided in the Draft Housing Element which will assist at reducing the number of comments from HCD. • How will the process work for adjusting the Housing Element regarding issues called out in the staff report, like HCD preference for minimum density instead of typical density? If the Council provides direction to staff to utilize the minimum density for the site inventory housing calculations, then a few additional sites would be required to be added to the site inventory in order to comply with the Town’s RHNA and 15 percent buffer. • If the Town Council adopts the Housing Element by January 31, 2023, and the Town continues an iterative process of revising the Hosing Element in response to subsequent HCD comments, will the Town Council need to readopt the Housing Element with all of the changes once HCD determines that it is ready to be certified? PAGE 3 OF 3 SUBJECT: Housing Element Update and Next Steps DATE: December 20, 2022 REMARKS (continued): Yes, the Town Council will need to adopt the Housing Element with any additional changes once HCD determines that the revised Housing Element meets the requirements to be certified. • What is the real risk of Builder’s Remedy in Los Gatos based on preliminary discussions with developers, anticipated CDAC applications, and other conversations? Staff has not heard of any intent from developers or property owners planning to utilize the Builder’s Remedy at this time. As mentioned in the staff report, no Builder’s Remedy applications came forward during previous Housing Element cycles when the Town missed the statutory deadlines for adoption of a Housing Element. ATTACHMENT: Previously received with December 20, 2022 Staff Report: 1. Housing Element Update Process Timeline