Item2.Desk Item with Attachment 11 (PDF)
PREPARED BY: Jocelyn Shoopman and Erin Walters
Associate Planner and Associate Planner
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
MEETING DATE: 07/20/2023
ITEM NO: 2
DESK ITEM
TOWN OF LOS GATOS
GENERAL PLAN COMMITTEE REPORT
DATE: July 20, 2023
TO: General Plan Committee
FROM: Joel Paulson, Community Development Director
SUBJECT: Make a Recommendation to Planning Commission on a Request to Amend the
General Plan to Include a Description of the Housing Element Overlay Zone;
Amend the General Plan Land Use Designation of 16492 Los Gatos Boulevard and
Assessor Parcel Number 532-07-086 from Low Density Residential to
Neighborhood Commercial; Amend the General Plan Land Use Designation of
Caltrans Right-of-Way Adjacent to 14685 Oka Road from Low Density Residential
to Medium Density Residential; Amend the Town Code to modify the Affordable
Housing Overlay Zone Division 5 of Article VIII Overlay Zones and Historic
Preservation; Amend the Town Code to incorporate the Housing Element
Overlay Zone as Division 6 of Article VIII Overlay Zones and Historic Preservation;
and Apply the Housing Element Overlay Zone to the Sites Included in the Sites
Inventory Analysis of the 2023-2031 Housing Element. An Environmental Impact
Report (EIR) was prepared and certified for the 2040 General Plan Update on
June 30, 2022, which included the proposed Genera l Plan Amendments. No
Further Environmental Analysis is Required. Zoning Code Amendment
Application Z-23-002 and General Plan Amendment Application GP-23-002.
PROPERTY OWNERS: Princeton Garden Properties LLC and California Department
of Transportation, Caltrans. APPLICANT: Town of Los Gatos.
PROJECT PLANNERS: Jocelyn Shoopman and Erin Walters.
REMARKS:
Attachment 11 contains Committee Member comments.
ATTACHMENTS:
Previously Received with the July 20, 2023, Staff Report:
1. Appendix D, Sites Inventory Analysis of the March 2023 Draft Revised Housing Element
2. Location Maps – 16492 Los Gatos Boulevard (Showing Existing and Proposed General Plan
Designations)
PAGE 2 OF 2
SUBJECT: Housing Element Overlay Zone/Z-23-002 and GP-23-002
DATE: July 20, 2023
ATTACHMENTS (continued):
3. Location Maps – Parcel 532-07-086 (Showing Existing and Proposed General Plan
Designations)
4. Location Maps – Caltrans Right-of-Way (Showing Existing and Proposed General Plan
Designations)
5. Draft Zoning Code Ordinance Amendments, Division 6. Housing Element Overlay Zone
6. Draft General Plan Amendment
Received with the July 19, 2023, Addendum: this Addendum Report:
7. Public Comments received between 11:01 a.m., Thursday, July 13, 2023, and 11:00 a.m.,
Wednesday, July 19, 2023
8. Appendix H, Sites Inventory Form
9. Table 10-3 of the July 2023 Interim Working Version of the Draft Revised Housing Element
10. 2020 General Plan and HEOZ Comparison Table
Received with this Desk Item Report:
11. Committee Member Comments
From: Melanie Hanssen
Sent: Thursday, July 20, 2023 10:55 AM
To: Jennifer Armer <JArmer@losgatosca.gov>; Joel Paulson <jpaulson@losgatosca.gov>
Subject: Desk Item for GPC meeting
[EXTERNAL SENDER]
Hi Jennifer and Joel,
Here is a document I wrote regarding production of smaller units for the Desk Item for the GPC meeting.
Is it still possible to include it?
Melanie
ATTACHMENT 11
Encouraging the production of smaller units to meet RHNA in Los Gatos
I am writing to bring up a thought for consideration as the Town is beginning the
process of amending the General Plan to create an overlay zone for the Town’s 6th
Cycle Housing Element 2023-2031, currently under review and revision for
certification.
Much of the discussion and ultimately policies proposed during the General Plan
2040 preparation process and now the Housing Element process have focused on
natural affordability via smaller units. While the GP 2040 Land Use and
Community Design elements have been suspended and the GP 2020 Land Use and
Community Design Elements are now the governing documents, the Housing
Element, in an effort to plan for RHNA of 1993 units between 2023 and 2031,
which is more than 3X of the last Housing Element cycle, has also focused on the
production of smaller units with some of the policies proposed.
Why smaller units?
We know that size of units is a major factor in market valuation. So, it translates
that a 1,000 sq. ft. unit will be significantly less expensive than a 2,500 sq. ft. unit.
That, of course, assumes quality, location and other factors are the same and it is
just the size variable. In addition, we know that there are two major trends
occurring—young adults are wanting to purchase their first home, but the average
selling price in Los Gatos is over $ 2 million. Not only is this not affordable for
them, but we know from research we have seen that young adults are much more
willing to consider and may prefer smaller units, especially if they are in walking
distance to amenities. Smaller units could be even less than 1,000 sq. ft. The same
is true for aging seniors for different dynamics. We know that many seniors wish
to age in place in Los Gatos but do not want to maintain a 4-6 thousand sq. ft.
home and would want to downsize into a smaller home that is more affordable
with their post-retirement income. So, both of these populations are not currently
well-served in Los Gatos and sadly, these are current residents or perhaps adult
children of current residents. Finally, we have to submit a number of sites where
housing can be built and zone for that in the Housing Element. If we were to plan
for smaller units, it would take up that much less space and cause less disruption
than many more locations/developments with larger units.
What does it take to encourage the production of smaller units?
When the Town started the process of looking at the much large RHNA for the 6th
cycle Housing Element of 1993 units plus buffer, we had some feedback, albeit
limited, that it would be hard for smaller units to pencil out financially for
developers without increasing either density or height. Now, in 2023, we have
recently received proposals, either through the Conceptual Development Advisory
Committee or more recently under SB330 (pre-application) fo r housing that would
include units mainly under 1000 sq ft. In both cases, either the density or height
or both would need to increase to accommodate the smaller units over what is
even planned for the proposed Housing Element Overlay Zone that we are
considering tonight for a recommendation.
The CDAC concept presented in June 2023 would need a density of over 60 DU per
acre and the SB330 pre-application for downtown would need a density of over 80
DU per acre along with height well over the 45- foot maximum in order to these
concepts to work financially for the developers. I would ask that our citizens leave
aside the location of these proposed denser developments for the moment and
consider the benefit of producing many smaller units in fewer locations.
The proposed densities and heights in the Housing Element Overlay Zone are for
High Density Residential or Mixed Use 30-40 DU per acre with 45 feet in height.
For other zones it is proposed to be much less. For sites in High Density or Mixed
Use, even the 40 DU per acre will fall far short of what is needed to encourage
smaller units in select locations. The Town will have an updated Density Bonus
Ordinance as part of this process so it is possibly for developers to get additional
density and height but that is still to be done so we don’t know what it will look
like. So, if there is consensus for the need to produce smaller units, somewhere in
this process, we need a mechanism to enable developers to pencil out these
higher density and higher height proposals or they won’t happen and we won’t be
serving some important groups of residents and we will be building on more sites
than necessary.
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