Item2.Staff Report with Attachments 1-4
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: 06/15/2023
ITEM NO: 2 TOWN OF LOS GATOS
HOUSING ELEMENT ADVISORY BOARD REPORT
DATE: June 9, 2023
TO: Housing Element Advisory Board
FROM: Joel Paulson, Community Development Director
SUBJECT: Review and Discuss the California Department of Housing and Community
Development’s (HCD) Findings/Comment Letter Received by the Town on May
30, 2023, and Possible Modifications to the Town’s Draft Revised Housing
Element.
BACKGROUND:
The following is a summary of public meetings and formal HCD comment letters received on the
Housing Element in 2023:
• January 12, 2023 – Town received a HCD findings/comment letter (Attachment 1).
• January 30, 2023 – Town Council adopted the 2023-2031 Housing Element with
modifications to the Sites Inventory.
• February 3 to 10, 2023 – Seven-day public review period for the 2023-2031 Housing Element
as adopted by the Town Council on January 30, 2023.
• February 13, 2023 – Town submitted the adopted 2023-2031 Housing Element to HCD. A
cover letter was included in the submittal describing that the Town was in the process of
addressing all the remaining comments found in the HCD findings/comment letter and
would be resubmitting a Draft Revised Housing Element after all the revisions were
completed. The cover letter and submittal documents are available online at:
https://www.losgatosca.gov/1735/General-Plan---Housing-Element.
• February 16, 2023 – The Housing Element Advisory Board (HEAB) met to review and discuss
the HCD findings/comment letter, and how the comments and findings would be addressed.
• March 16, 2023 – The HEAB reviewed the Draft Revised 2023-2031 Housing Element which
included modifications to the Town Council adopted 2023-2031 Housing Element in
response to the January 12, 2023 HCD comments.
PAGE 2 OF 3
SUBJECT: Review and Discuss the Town’s Draft Revised Housing Element
DATE: June 9, 2023
BACKGROUND (continued):
• March 23 to 30, 2023 – Seven-day public review period for the Draft Revised 2023-2031
Housing Element as recommended by the HEAB.
• March 31, 2023 – The Town submitted the Draft Revised 2023-2031 Draft Housing Element
to HCD for review. The March 31, 2023, cover letter and submittal documents are available
online at: www.losgatosca.gov/HousingElement.
• April 4, 2023 – The Town Council reviewed and discussed the Draft Revised 2023-2031
Housing Element as submitted to the HCD on March 31, 2023.
• April 14, 2023 – The Town received a HCD findings/comment letter on the adopted Housing
Element that was submitted to HCD on February 13, 2023 (Attachment 2).
• April 21, 2023 and May 10, 2023 – Staff met with the Town’s HCD reviewer to discuss the
March 31, 2023 resubmittal and to receive preliminary feedback.
• May 30, 2023 – The Town received a HCD findings/comment letter on the Draft Revised
Housing Element. The findings/comment letter is in reference to the Town’s Draft Revised
Housing Element submitted to HCD on March 31, 2023. HCD determined that the Town’s
Draft Revised Housing Element addresses many statutory requirements but identified
revisions necessary to comply with State Housing Element law.
DISCUSSION:
The purpose of this meeting is to review and discuss HCD’s findings/comment letter and how
the findings/comments will be addressed. Staff has prepared a table breaking the letter into
individual comments and providing the status of the response to each HCD comment
(Attachment 4). Town staff and the consultants continue to work on the majority of the
responses to the HCD findings/comment letter, and items that are still in progress of
completion are noted in Attachment 4. Staff will be meeting with HCD in mid-June to discuss
the comment letter and the Town’s responses.
NEXT STEPS:
HEAB will review a Draft Revised Housing Element with responses to the HCD comment letter in
July (tentatively). Based on the review and a recommendation from the HEAB, a Draft Revised
Housing Element will be posted online for the required seven-day review and then submitted to
HCD. Additional, subsequent reviews by HCD will take up to 60 days.
Once HCD determines and communicates that the Town’s Housing Element is ready for
certification, the public hearing process for adoption will occur again with the Planning
Commission making a recommendation and the Town Council making the final decision on
adoption of the Housing Element.
PAGE 3 OF 3
SUBJECT: Review and Discuss the Town’s Draft Revised Housing Element
DATE: June 9, 2023
PUBLIC COMMENTS:
As of the drafting of this report, no comments from the public have been received.
Public comments are encouraged throughout the Housing Element update process and can be
emailed to HEUpdate@losgatosca.gov.
ATTACHMENTS:
1.January 12, 2023, HCD Findings/Comment Letter
2.April 14, 2023, HCD Findings/Comment Letter
3.May 30, 2023, HCD Findings/Comment Letter
4.Draft Response Table to HCD’s Findings/Comment Letter
This Page
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STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
January 12, 2023
Joel Paulson, Director
Community Development Department
Town of Los Gatos
110 E Main Street,
Los Gatos, CA 95030
Dear Joel Paulson:
RE: Town of Los Gatos’ 6th Cycle (2023-2031) Draft Housing Element
Thank you for submitting the Town of Los Gatos draft housing element received for
review on October 14, 2022. Pursuant to Government Code section 65585, subdivision
(b), the California Department of Housing and Community Development (HCD) is
reporting the results of its review. In addition, HCD considered comments from YIMBY
Law and Greenbelt Alliance, Kylie Clark, Silicon Valley@Home and Campaign for Fair
Housing Elements and YIMBY Law, pursuant to Government Code section 65585,
subdivision (c).
The draft element addresses many statutory requirements; however, revisions will be
necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code).
The enclosed Appendix describes the revisions needed to comply with State Housing
Element Law.
For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if
a local government fails to adopt a compliant housing element within 120 days of the
statutory deadline (January 31, 2023), then any rezoning to make prior identified sites
available or accommodate the regional housing needs allocation pursuant to
Government Code sections 65583, subdivision (c) and 65583.2, subdivision (c), shall be
completed no later than one year from the statutory deadline. Please be aware, if the
Town fails to adopt a compliant housing element within one year from the statutory
deadline, the element cannot be found in substantial compliance until any necessary
rezones are completed.
Several federal, state, and regional funding programs consider housing element
compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill
(SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s
Affordable Housing and Sustainable Communities programs; and HCD’s Permanent
Local Housing Allocation consider housing element compliance and/or annual reporting
ATTACHMENT 1
Joel Paulson, Director
Page 2
requirements pursuant to Government Code section 65400. With a compliant housing
element, the Town will meet housing element requirements for these and other funding
sources.
For your information, some general plan element updates are triggered by housing
element adoption. HCD reminds the Town to consider timing provisions and welcomes
the opportunity to provide assistance. For information, please see the Technical
Advisories issued by the Governor’s Office of Planning and Research at:
https://www.opr.ca.gov/planning/general-plan/guidelines.html.
HCD appreciates your hard work provided in the housing element update. We are
committed to assisting the Town in addressing all statutory requirements of State
Housing Element Law. If you have any questions or need additional technical
assistance, please contact Jose Armando Jauregui, of our staff, at
jose.jauregui@hcd.ca.gov .
Sincerely,
Paul McDougall
Senior Program Manager
Enclosure
Town of Los Gatos 6th Cycle (2023-2031) Draft Housing Element Page 1
January 12, 2023
APPENDIX
TOWN OF LOS GATOS
The following changes are necessary to bring the Town’s housing element into compliance
with Article 10.6 of the Government Code. Accompanying each recommended change, we cite
the supporting section of the Government Code.
Housing element technical assistance information is available on HCD’s website at
https://www.hcd.ca.gov/planning-and-community-development/hcd-memos. Among other
resources, the housing element section contains HCD’s latest technical assistance tool,
Building Blocks for Effective Housing Elements (Building Blocks), available at
https://www.hcd.ca.gov/planning-and-community-development/housing-elements/building-
blocks and includes the Government Code addressing State Housing Element Law and other
resources.
A. Review and Revision
Review the previous element to evaluate the appropriateness, effectiveness, and progress
in implementation, and reflect the results of this review in the revised element. (Gov. Code,
§ 65588 (a) and (b).)
The review requirement is one of the most important features of the element update. The
review of past programs should describe progress in implementation of previous actions,
including results compared to objectives and evaluate the effectiveness of actions to make
appropriate adjustments in the current planning period. In the most cases, the element
does not describe any progress in implementation and particularly housing related
outcomes and then simply concludes to continue or modify programs. For example, the
prior element had a program to implement the below market rate program and evaluate the
program as a constraint. The element reports the program was implemented. There is no
discussion of outcomes or an evaluation of constraints. Then, the element concludes the
program will be modified but the new program does not appear to adjust on past efforts.
The element must fully describe past commitments, progress in implementation, evaluate
effectiveness and then discuss appropriate adjustments in the current planning period.
In addition, the element must provide an evaluation of the cumulative effectiveness of past
goals, policies, and related actions in meeting the housing needs of special needs
populations (e.g., elderly, persons with disabilities, large households, female-headed
households, farmworkers, and persons experiencing homelessness) and revise programs
as appropriate.
B. Housing Needs, Resources, and Constraints
1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with
Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in
the jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).)
Town of Los Gatos 6th Cycle (2023-2031) Draft Housing Element Page 2
January 12, 2023
Regional Level Patterns and Trends: While the element includes several maps and
tables and reports data, it generally must evaluate the data and especially at a regional
level, comparing the Town to the broader region. This is particularly important since the
Town appears far different from the rest of the region. The analysis should address all
components of the assessment of fair housing (e.g., segregation and integration,
disparities in access to opportunity) and should focus on race, income, and overall
access to opportunity). The analysis should address trends and incorporate local data
and knowledge and other relevant factors (See below).
Income and Racial Concentration of Affluence (RCAA): The element briefly mentions
incomes in the Town compared to the region and notes it is safe to speculate the Town
has neighborhoods that are RCAAs; however, the entire Town is a RCAA and the
element should incorporate this information. Please see HCD’s Affirmatively Furthering
Fair Housing (AFFH) Data Viewer at https://affh-data-resources-cahcd.hub.arcgis.com/.
The element should include specific analysis of income and RCAA at a regional level
(Town compared to the broader region). The analysis should at least address trends,
conditions, coincidence with other fair housing factors (e.g., race, highest resource,
overpayment), effectiveness or absence of past strategies (e.g., lack of publicly assisted
housing and lack of multifamily zoning), local data and knowledge and other relevant
factors. The element must add or modify meaningful programs based on the outcomes
of this analysis, including actions to improve housing mobility within and beyond Town
boundaries.
Disparities in Access to Opportunity: While the element provided a general analysis of
opportunity areas, and high-level conclusions about the Town’s disparities in access to
opportunity, it should analyze trends and patterns related to access to transportation on
a local and regional level.
Disproportionate Housing Needs, Including Displacement Risk: The element includes
some information on cost burden and overcrowding but should also discuss local
patterns of housing conditions. For example, the element should discuss areas of the
Town where proportions of housing units needing rehabilitation may be higher than
other areas and may utilize local knowledge such as qualitative information from code
enforcement staff.
Identified Sites and Affirmatively Furthering Fair Housing (AFFH): The element must
include data on the location of regional housing need allocation (RHNA) sites by income
group relative to all fair housing components. The analysis should address the number
of units by income group and location, any isolation of the RHNA by income group,
magnitude of the impact on existing concentrations of socio- economic characteristics
and discuss how the sites improve fair housing conditions. The analysis should be
supported by local data and knowledge and other relevant factors and programs should
be added or modified as appropriate to promote inclusive and equitable communities.
Local Data and Knowledge: The element must include local data, knowledge, and other
relevant factors to discuss and analyze any unique attributes about the Town related to
Town of Los Gatos 6th Cycle (2023-2031) Draft Housing Element Page 3
January 12, 2023
fair housing issues. The element should complement federal, state, and regional data
with local data and knowledge where appropriate to capture emerging trends and
issues, including utilizing knowledge from local and regional advocates and service
providers, Town staff and related local and County planning documents.
Other Relevant Factors: While the element includes some general background on
exclusionary practices, it should relate these situations to the Town and complement
data and mapping with other relevant factors that contribute to fair housing issues in the
Town. For instance, the element can analyze historical land use; zoning and barriers to
housing choices such as past denials of affordable housing, local land use initiatives or
proposed referendums; investment practices; seeking investment or lack of seeking
investment to promote affordability and inclusion; information about
redlining/greenlining, restrictive covenants and other discriminatory practices; land use
related lawsuits; local land use initiatives; demographic trends, or other information that
complements the state and federal data.
Contributing Factors to Fair Housing Issues: Upon a complete AFFH analysis, the
element must assess and prioritize contributing factors to fair housing issues and add or
modify programs as appropriate.
2. Include an analysis and documentation of household characteristics, including level of
payment compared to ability to pay, housing characteristics, including overcrowding,
and housing stock condition. (Gov. Code, § 65583, subd. (a)(2).)
Housing Conditions: The element provides some information on age of the housing
stock. However, it must estimate the number of units in need of rehabilitation and
replacement. For example, the analysis could include estimates from a recent
windshield survey or sampling, estimates from the code enforcement agency, or
information from knowledgeable organizations. For additional information, see the
Building Blocks at https://www.hcd.ca.gov/planning-and-community-
development/housing-elements/building-blocks/housing-stock-characteristics.
3. An inventory of land suitable and available for residential development, including vacant
sites and sites having realistic and demonstrated potential for redevelopment during the
planning period to meet the locality’s housing need for a designated income level, and
an analysis of the relationship of zoning and public facilities and services to these sites.
(Gov. Code, § 65583, subd. (a)(3).)
Pipeline Projects: The element includes a list of 176 units through pipeline projects on
page D-38. While the element may utilize pipeline and potential development projects
toward the RHNA, it must also demonstrate their affordability and availability in the
planning period. Affordability must be demonstrated based on actual sales price, rent
level or other mechanisms ensuring affordability (e.g., deed restrictions). Availability
should account for the likelihood of project completion in the planning period and should
address the status, necessary steps to issue permits, any barriers to development and
other relevant factors.
Town of Los Gatos 6th Cycle (2023-2031) Draft Housing Element Page 4
January 12, 2023
Sites Inventory: The element must clarify what the allowable density is for the North
Forty Specific Plan identified in Table A. The inventory indicates sites zoned under the
North Forty Specific Plan where the minimum and maximum densities is the same (i.e.,
30 units per acre). If the densities are the same, the element should include a specific
analysis of the range as a potential constraint.
Realistic Capacity: The element must include a methodology for calculating the realistic
residential capacity of identified sites. The methodology must be adjusted as necessary,
based on the land use controls and site improvements and typical densities of existing
or approved residential developments at a similar affordability level in that jurisdiction.
For example, the element could clearly list other recent projects, the zone, acreage,
built density, allowable density, level of affordability and presence of exceptions such as
a density bonus.
In addition, the element must also account for the likelihood of 100 percent
nonresidential development. The element lists recent trends for residential development
in non-residential zones but should also consider the development activity of 100
percent nonresidential uses. For example, the element could analyze all development
activity in these nonresidential zones, how often residential development occurs and
adjust residential capacity calculations, policies, and programs accordingly. This
analysis may incorporate any proposed policies such as residential performance
standards and prohibition of commercial uses.
Nonvacant Sites: The element must include an analysis demonstrating the potential for
additional development on nonvacant sites. The element generally provides a
description of the properties like location and whether the property owner submitted an
interest form but does not describe the results of the form or why the property might
redevelop in the planning period. To address this requirement, the element should
address the extent to which existing uses may constitute an impediment to additional
residential development, the Town’s past experience with converting existing uses to
higher density residential development, the current market demand for the existing use,
an analysis of any existing leases or other contracts that would perpetuate the existing
use or prevent redevelopment of the site for additional residential development,
development trends, market conditions, and regulatory or other incentives or standards
to encourage additional residential development on these sites.
For your information, if the housing element relies upon nonvacant sites to
accommodate more than 50 percent of the RHNA for lower-income households the
housing element must demonstrate existing uses are not an impediment to additional
residential development and will likely discontinue in the planning period. (Gov. Code, §
65583.2, subd. (g)(2).) Absent findings (e.g., adoption resolution) based on substantial
evidence, the existing uses will be presumed to impede additional residential
development and will not be utilized toward demonstrating adequate sites to
accommodate the RHNA.
Replacement Housing Requirements: The element identifies sites with existing
residential uses. Absent a replacement housing program, these sites are not adequate
sites to accommodate lower-income households. The replacement housing program
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January 12, 2023
that has the same requirements as set forth in Government Code section 65915,
subdivision (c), paragraph (3). The housing element must be revised to include such
analysis and a program, if necessary.
Small Sites: The element identifies several sites smaller than a half-acre. Sites
smaller than a half-acre in size are deemed inadequate to accommodate housing for
lower-income housing unless it is demonstrated that sites of equivalent size and
affordability were successfully developed during the prior planning period or other
evidence demonstrates the suitability of the sites to accommodate housing for lower-
income households, including programs as appropriate.
Zoning for Lower-Income Households: The element must demonstrate zoning
appropriate to accommodate housing for lower-income households. The sites inventory
includes zones with densities of 14 to 22 units per acre (Medium Density Residential R-
M) that allocate units for lower income. However, the element does not include an
analysis evaluating the adequacy of the R-M zone to encourage and facilitate the
development of units affordable to lower-income households. For communities with
densities that meet specific standards (allow at least 30 units per acre for Los Gatos),
no analysis is required. Otherwise, the element must include an analysis based on,
including but not limited to, factors such as market demand, financial feasibility and
development experience within identified zones demonstrating how the adopted
densities can accommodate housing for lower-income households.
SB 9 Sites: The element identifies SB 9 as a strategy to accommodate the part of the
Town’s RHNA. To support these assumptions, the analysis must include experience,
trends and market conditions that allow lot splits. The analysis must also include a
nonvacant sites analysis demonstrating the affordability, likelihood of redevelopment and
the existing use will not constitute as an impediment for additional residential use. The
analysis should describe how the Town determined eligible properties, whether the
assumed lots will have turnover, if the properties are easy to subdivide, and the condition
of the existing structures or other relevant factors indicating additional development
potential. The analysis should also describe interest from property owners as well as
experience. The analysis should provide support for the assumption of eligible properties
being developed within the planning period. Based on the outcomes of this analysis, the
element should add or modify programs to establish zoning and development standards
early in the planning period and implement incentives to encourage and facilitate
development as well as monitor development every two years with and identify additional
sites within six months if assumptions are not being met. The element should support this
analysis with local information such as local developer or owner interest to utilize zoning
and incentives established through SB 9.
Availability of Infrastructure: The element must demonstrate sufficient existing or
planned water and sewer capacity to accommodate the Town’s RHNA for the planning
period.
Zoning for a Variety of Housing Types:
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January 12, 2023
• Transitional and Supportive Housing: Transitional housing and supportive
housing are permitted as a residential use and only subject to those restrictions
that apply to other residential dwellings of the same type in the same zone. The
element must demonstrate compliance with this requirement or include a
program if necessary.
• Permanent Supportive Housing: By right permanent supportive housing shall be
a use by-right in zones where multifamily and mixed uses are permitted,
including nonresidential zones permitting multifamily uses pursuant to
Government Code section 65651. The element must demonstrate compliance
with this requirement and include programs as appropriate.
• Employee Housing: The element should clarify if there are any zones that allow
agriculture uses. If there are zones that allow agriculture uses, then the town
must comply with California Health and Safety Code Section 17021.6. Section
17021.6 requires employee housing consisting of no more than 12 units or 36
beds to be permitted in the same manner as other agricultural uses in the same
zone.
• Manufactured Housing: The element must demonstrate zoning permits
manufactured housing on a permanent foundation in the same manner and in the
same zone as a conventional or stick-built structures are permitted (Government
Code Section 65852.3) or add or modify programs as appropriate.
Electronic Sites Inventory: For your information, pursuant to Government Code section
65583.3, the Town must submit an electronic sites inventory with its adopted housing
element. The Town must utilize standards, forms, and definitions adopted by HCD.
Please see HCD’s housing element webpage at https://www.hcd.ca.gov/planning-and-
community-development/housing-elements for a copy of the form and instructions. The
Town can reach out to HCD at sitesinventory@hcd.ca.gov for technical assistance.
4. An analysis of potential and actual governmental constraints upon the maintenance,
improvement, or development of housing for all income levels, including the types of
housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as
identified in the analysis pursuant to paragraph (7), including land use controls, building
codes and their enforcement, site improvements, fees and other exactions required of
developers, and local processing and permit procedures... (Gov. Code, § 65583, subd.
(a)(5).)
Land Use Controls: The element must identify and analyze all relevant land use controls
impacts as potential constraints on a variety of housing types. For example, the element
should analyze all development standards by zoning district for impacts on housing
costs and ability to achieve maximum densities. The element should also discuss any
local initiatives, referendums, moratoriums or other mechanisms (existing or proposed)
that impact housing supply, cost, feasibility, timing and ability to achieve maximum
densities. In addition, the analysis should specifically address the development
standards in the North Forty Specific Plan, Mixed Use Commercial, and the High-
Density Residential zone. The analysis must evaluate the cumulative impacts of land
use controls on the cost and supply of housing, including the ability to achieve
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January 12, 2023
maximum densities. The Town could engage the development community to assist with
this analysis.
Fees and Exaction: While the element lists the total fees per units for single-family and
multifamily development, it should also list the fees that comprise that total and
particularly impact fees then evaluate those total fees for impacts on development
costs.
Local Processing and Permit Procedures: The element must describe and analyze the
types of permits, extent of discretionary review including required approval findings,
number of public hearings and processing time required for a typical single family and
multifamily development that meets zoning requirements.
Housing for Persons with Disabilities: The element indicates the Town adopted a
procedure for requesting reasonable accommodation for persons with disabilities (p. C-
23) and describes the procedure; however, the element should address criteria related
to: “There would be no impact on surrounding uses” and include a program to address
the constraint. In addition, residential care facilities for seven or more require a
conditional use permit (CUP). The element should evaluate the CUP as a constraint and
add a program to allow group homes in all residential zones with an objective and
certain process similar to other residential uses.
Density Bonus: The element states the Town adopted a state density bonus program in
June 2012. The Town’s current density bonus program should be reviewed for
compliance with current State Density Bonus Law (SDBL). (Gov. Code, § 65915.). The
element should include a program to update density bonus program. Program V is
conducting a study to evaluate the existing Density Bonus Ordinance and recommend
changes to increase the number of units constructed, however it should specifically
commit to update the ordinance in compliance with state law.
Inclusionary Zoning Ordinance: The element mentions the Town’s inclusionary zoning
ordinance, but it must also analyze the Town’s inclusionary housing requirements,
including its impacts as potential constraints on the development of housing for all
income levels. The analysis must evaluate the inclusionary broader policy’s
implementation framework, including the percentage of new residential construction that
is dedicated to affordable housing, the types of options and incentives offered,
relationships with SDBL and any other factors that may impact housing costs.
Zoning and Fees Transparency: The element must clarify its compliance with new
transparency requirements for posting all zoning, development standards and fees for
each parcel on the jurisdiction’s website.
5. Analyze any special housing needs such as elderly; persons with disabilities, including a
developmental disability; large families; farmworkers; families with female heads of
households; and families and persons in need of emergency shelter. (Gov. Code, §
65583, subd. (a)(7).)
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Special Housing Needs: While the element quantifies some of the Town’s special needs
populations, it must also estimate the number of persons experiencing homelessness in
the Town. In addition, the element reports data but must also analyze the special
housing needs. For a complete analysis of each population group, the element should
quantify the needs, evaluate trends and characteristics (e.g., tenure, income) of housing
needs, discuss disproportionate challenges faced by the population, the existing
resources to meet those needs, assess any gaps in resources or effectiveness of past
strategies, describe the magnitude of the remaining need and appropriate propose
policies and programs.
For additional information and a sample analysis, see the Building Blocks at
https://www.hcd.ca.gov/planning-and-community-development/housing-
elements/building-blocks.
C. Housing Programs
1. Include a program which sets forth a schedule of actions during the planning period,
each with a timeline for implementation, which may recognize that certain programs are
ongoing, such that there will be beneficial impacts of the programs within the planning
period, that the local government is undertaking or intends to undertake to implement
the policies and achieve the goals and objectives of the Housing Element... (Gov. Code,
§ 65583, subd. (c).)
To have a beneficial impact in the planning period and achieve the goals and objectives
of the housing element, programs should have specific commitment toward housing
outcomes and discrete and early timing (e.g., at least annually or by Jan 2025).
Examples of programs to be revised include:
• Program K Small Multi-Unit Housing: The Program should include a timeline
of when zoning code will be updated.
• M Lot Consolidation: The Program should include a quantification of
approximately how many lot consolidations the town plans to facilitate.
• Program R Development Impact and Permit Fees: The Program should
include a completion timeline.
• Program S Affordable Housing Development: The Program should include
quantification of approximately how many units will be incentivized.
• Program T Purchase Affordability Covenants in Existing Apartments: The
element should clarify the timeline to establish and implement the program
(e.g., by 2024 and at least annually).
• Program AC Housing Opportunities for Persons Living with Disabilities: The
Program must include a completion timeframe.
• Program AK Housing Conditions Survey: Program should be revised to include a
specific timeline for when the housing condition survey will be conducted.
Additionally, the element should describe how often funding will be applied for (e.g.,
annually).
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• Program AR CDBG and Other Housing Rehabilitation Programs: The Program
should clarify how often the Town will participate in the County of Santa Clara
Community Development Block Grant Joint Powers Authority (e.g. annually,
biannually).
• AS Countywide Home Repair Programs: The Program should include a
numerical target (e.g., how many minor home repairs).
• AU Residential Rehabilitation Program: The Program should include a
timeline commitment.
2. Identify actions that will be taken to make sites available during the planning period with
appropriate zoning and development standards and with services and facilities to
accommodate that portion of the city’s or county’s share of the regional housing need
for each income level that could not be accommodated on sites identified in the
inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and
to comply with the requirements of Government Code section 65584.09. Sites shall be
identified as needed to facilitate and encourage the development of a variety of types of
housing for all income levels, including multifamily rental housing, factory-built housing,
mobilehomes, housing for agricultural employees, supportive housing, single-room
occupancy units, emergency shelters, and transitional housing. (Gov. Code, § 65583,
subd. (c)(1).)
As noted in Finding B3, the element does not include a complete site analysis;
therefore, the adequacy of sites and zoning were not established. Based on the results
of a complete sites inventory and analysis, the Town may need to add or revise
programs to address a shortfall of sites or zoning available to encourage a variety of
housing types. In addition, the element should be revised as follows:
Program D Additional Housing Capacity: Currently the element identifies a shortfall of
adequate sites to accommodate the RHNA within the planning period. Program D
appears to be intended to rezone sites to accommodate a shortfall of sites for the lower-
income- RHNA. However, the Program must be revised to meet all requirements
pursuant to Government Code section 65583.2, subdivisions (h) and (i). For example,
the Program must commit to permit owner-occupied and rental multifamily uses by-right
(without discretionary action) for developments in which 20 percent or more of the units
are affordable to lower-income households.
Replacement Housing Requirements: The housing element must include a program to
provide replacement housing. (Gov. Code, § 65583.2, subd. (g)(3).) The replacement
housing program must adhere to the same requirements as set forth in Government
Code section 65915, subdivision (c), paragraph (3).
3. The Housing Element shall contain programs which assist in the development of
adequate housing to meet the needs of extremely low-, very low-, low- and moderate-
income households. (Gov. Code, § 65583, subd. (c)(2).)
Program S (Affordable Housing Development): While the program targets extremely low
income and other special needs groups, it should also include very low- and low-income
Town of Los Gatos 6th Cycle (2023-2031) Draft Housing Element Page 10
January 12, 2023
households. The Program should be revised to include outcome-oriented commitments
such as annual outreach with developers and identification of development or housing
opportunities.
4. Address and, where appropriate and legally possible, remove governmental and
nongovernmental constraints to the maintenance, improvement, and development of
housing, including housing for all income levels and housing for persons with
disabilities. The program shall remove constraints to, and provide reasonable
accommodations for housing designed for, intended for occupancy by, or with
supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).)
As noted in Finding B4, the element requires a complete analysis of potential
governmental constraints. Depending upon the results of that analysis, the Town may
need to revise or add programs and address and remove or mitigate any identified
constraints.
5. Promote and affirmatively further fair housing opportunities and promote housing
throughout the community or communities for all persons regardless of race, religion,
sex, marital status, ancestry, national origin, color, familial status, or disability, and other
characteristics... (Gov. Code, § 65583, subd. (c)(5).)
As noted in Finding B1, the element requires a complete AFFH analysis. Depending
upon the results of that analysis, the Town may need to revise or add or modify goals
and actions. Goals and actions must specifically respond to the analysis and to the
identified and prioritized contributing factors to fair housing issues and must be
significant and meaningful enough to overcome identified patterns and trends. Actions
must have specific commitment, milestones, geographic targeting and metrics or
numerical targets and, as appropriate, address housing mobility enhancement, new
housing choices and affordability in higher opportunity or higher income areas, place-
based strategies for community revitalization and displacement protection. For example,
the element must add significant and meaningful housing mobility actions to overcome
the existing patterns in the Town related to the broader region.
6. Develop a plan that incentivizes and promotes the creation of accessory dwelling units
that can be offered at affordable rent... (Gov. Code, § 65583, subd. (c)(7).)
Program U Accessory Dwelling Units (ADU): While the element includes a program to
incentivize ADU development by waiving fees when an ADU is deed restricted for very
low-, and low-income households, it should also provide other incentives that incentivize
and promote the creation of ADUs that can be offered at affordable rent. The element
could consider other ADU incentives such as exploring and pursuing funding, modifying
development standards, and reducing fees beyond state law, pre-approved plans, and
homeowner/applicant assistance tools. Finally, the program should commit to monitor
the production and affordability of ADUs (e.g., every other year) and make adjustments,
if necessary, by a date certain (e.g., within six months).
Town of Los Gatos 6th Cycle (2023-2031) Draft Housing Element Page 11
January 12, 2023
D. Quantified Objectives
Establish the number of housing units, by income level, that can be constructed,
rehabilitated, and conserved over a five-year time frame. (Gov. Code, § 65583, subd. (b)(1
& 2).)
The element did not address this requirement. The element must include quantified
objectives to establish an estimate of housing units by income category, including
extremely low-income households, that can be constructed, rehabilitated, and conserved
over the planning period.
E. Public Participation
Local governments shall make a diligent effort to achieve public participation of all
economic segments of the community in the development of the Housing Element, and the
element shall describe this effort. (Gov. Code, § 65583, subd.(c)(9).)
While the element described various efforts to achieve public participation in the
preparation of the housing element update, it should also describe how comments were
considered and incorporated into the element.
Public participation in the development, adoption and implementation of the housing
element is essential to effective housing planning. During the housing element revision
process, the Town must continue to engage the community, especially organizations that
represent lower-income and special needs households, including local neighborhood
groups and commenters on this review such as Silicon Valley@Home, by making
information regularly available while considering and incorporating comments where
appropriate. Please be aware, any revisions to the element must be posted on the local
government’s website and to email a link to all individuals and organizations that have
previously requested notices relating to the local government’s housing element at least
seven days before submitting to HCD.
F. General Plan Consistency
The Housing Element shall describe the means by which consistency will be achieved with
other general plan elements and community goals. (Gov. Code, § 65583, subd. (c)(7).)
The Town must discuss how internal consistency will be maintained and achieved with
other elements of the general plan throughout the planning period.
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STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
April 14, 2023
Laurel Prevetti, City Manager
Town of Los Gatos
110 E Main Street
Los Gatos, CA 95030
Dear Laurel Prevetti:
RE: Town of Los Gatos’ 6th Cycle (2023-2031) Adopted Housing Element
Thank you for submitting the Town of Los Gatos’ (Town) adopted housing element
received for review on February 13, 2023. In addition, the Town submitted draft
revisions on March 31, 2023. However, these revisions are not considered as part of
this review. The Town, in adopting the element, also made findings pursuant to
Government Code section 65585, subdivision (f)(2). These findings appear intended to
explain the reasoning the element substantially complies with State Housing Element
Law (Article 10.6 of the Gov. Code) despite findings made by the California Department
of Housing and Community Development (HCD) in its January 12, 2023 prior review.
However, the Town’s findings are inadequate to demonstrate compliance with statutory
requirements, and revisions to the element continue to be necessary to comply with
State Housing Element Law. Pursuant to Government Code section 65585, subdivision
(h), HCD is reporting the results of its review:
•Local Findings of Substantial Compliance: The Town prepared findings that
appear intended to explain the reasoning the element substantially complies with
State Housing Element Law despite HCD findings in the prior review. However,
these findings do not provide content, reasoning, or response to HCD’s findings
that the prior draft element does not substantially comply with State Housing
Element Law. For example, HCD’s prior review has various findings regarding an
assessment of fair housing and appropriate policies and programs to affirmatively
furthering fair housing (AFFH). The Town’s findings do not address this essential
statutory requirement. Similar issues persist throughout the Town’s findings
where statutory requirements are not addressed in any meaningful way or where
broad statements of statutory requirements are made but no content, reasoning,
or response is provided in regard to these statutory requirements or HCD’s prior
findings.
The Town’s findings only appear to make an attempt at meeting statutory
requirements related to calculations of realistic residential capacity, suitability of
ATTACHMENT 2
Laurel Prevetti, City Manager
Page 2
sites, and potential for redevelopment on nonvacant sites–narrow issues among
many statutory requirements. However, these findings do not address the full
extent of statutory requirements and HCD’s prior findings.
Regarding the calculation of realistic residential capacity, the Town appears to be
using minimum densities, which is an acceptable approach. However, the
element and the findings do not appear to clarify or commit to this approach. The
element simply changes the calculations, but there is no explanation that
minimum densities are required or programmatic commitment to the minimum
densities utilized. For example, for the North Forty Specific Plan, Program D
(Additional Housing Capacity) does not commit to minimum densities, and
minimum and maximum densities seem to be coterminous, which is generally
considered a constraint on development. Also, the element does not make a
commitment to require residential uses in zones that allow 100 percent non-
residential uses so the element and findings are not responsive to HCD’s findings
regarding the likelihood of residential development.
Regarding suitability of sites and redevelopment potential on nonvacant sites in
the planning period, the Town’s findings explain that a few sites are added and
simply mention that existing uses do not constitute an impediment to planned
residential development in the planning period due to the submittal of property
owner interest forms. First, this finding does not address that the use will likely
discontinue during the planning period as required by statute. Second, the
Town’s finding does not address several other statutory areas of HCD’s findings
such as replacement requirements, small sites, appropriate zoning for lower-
income households, infrastructure, and zoning for a variety of housing types.
Third, simply stating a property owner submitted an interest form is not an
affirmative demonstration of interest in residential development in the planning
period. There is no discussion of the form and methods of gathering the
information. Finally, but not exhaustively, many identified sites do not describe
owner interest, and there is no other information or reasoning to explain how the
Town complies with these requirements despite HCD’s findings.
For these and many other reasons, the Town’s findings do not explain the
reasoning as to how the element substantially complies with State Housing
Element Law despite HCD’s findings in the prior review.
• Adopted Housing Element and HCD’s Findings: The Town’s adopted element
essentially contains no revisions to address HCD’s prior findings. The adopted
element contains minimal revisions regarding utilizing minimum densities
(although not consistently) to calculate residential capacity and adds a few sites
but otherwise provides no content to address HCD’s January 12, 2023 review.
For these reasons, HCD will not repeat its findings and refers the Town to HCD’s
prior review.
Laurel Prevetti, City Manager
Page 3
• Revisions Submitted for HCD’s Review: The Town submitted revisions to HCD
on March 31, 2023. These revisions have not been considered in this review for
various reasons, including the timing of the submittal as well as the importance of
responding directly to the Town’s findings pursuant to Government Code section
65585, subdivision (f)(2). HCD has considered these revisions as a separate
submission and will be reviewed expeditiously, to the extent possible. HCD
recognizes the Town’s commitment to address HCD’s findings as noted in
Resolution 2023-006 and fully appreciates the opportunity to cooperate with the
Town to help the Town meet statutory requirements and substantially comply
with State Housing Element Law.
For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if
a local government fails to adopt a compliant housing element within 120 days of the
statutory deadline (January 31, 2023), then any rezoning to make prior identified sites
available or accommodate the regional housing needs allocation (RHNA) shall be
completed no later than one year from the statutory deadline pursuant to Government
Code sections 65583, subdivision (c) and 65583.2, subdivision (c). Otherwise, the local
government’s housing element will no longer comply with State Housing Element Law,
and HCD may revoke its finding of substantial compliance pursuant to Government
Code section 65585, subdivision (i). Please be aware, if the Town fails to adopt a
compliant housing element within one year from the statutory deadline, the element
cannot be found in substantial compliance until these rezones are completed.
Please be aware that AB 2339, codified in Government Code section 65583 adds
specificity on how cities and counties plan for emergency shelters and ensure sufficient
and suitable capacity. Future submittals of the housing element may need to address
these statutory requirements. For additional information and timing requirements,
please see HCD’s memo at https://www.hcd.ca.gov/sites/default/files/docs/planning-
and-community/ab2339-notice.pdf.
Public participation in the development, adoption, and implementation of the housing
element is essential to effective housing planning. Throughout the housing element
process, the Town should continue to engage the community, including organizations
that represent lower-income and special needs households, by making information
regularly available and considering and incorporating comments where appropriate.
Please be aware, any revisions to the element must be posted on the local
government’s website, and a link to the revisions must be emailed to all individuals and
organizations that have previously requested notices relating to the local government’s
housing element at least seven days before submitting to HCD.
Several federal, state, and regional funding programs consider housing element
compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill
(SB) 1 Sustainable Communities grant, the Strategic Growth Council and HCD’s
Affordable Housing and Sustainable Communities programs, and HCD’s Permanent
Local Housing Allocation consider housing element compliance and/or annual reporting
Laurel Prevetti, City Manager
Page 4
requirements pursuant to Government Code section 65400. With a compliant housing
element, the Town will meet housing element requirements for these and other funding
sources.
For your information, some general plan element updates are triggered by housing
element adoption. HCD reminds the Town to consider timing provisions and welcomes
the opportunity to provide assistance. For information, please see the Technical
Advisories issued by the Governor’s Office of Planning and Research at:
https://www.opr.ca.gov/planning/general-plan/guidelines.html.
We are committed to assist the Town in addressing all statutory requirements of State
Housing Element Law. If you have any questions or need additional technical
assistance, please contact Jose Armando Jauregui, of our staff, at
jose.jauregui@hca.ca.gov.
Sincerely,
Paul McDougall
Senior Program Manager
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
May 30, 2023
Joel Paulson, Director
Community Development Department
Town of Los Gatos
110 E Main Street
Los Gatos, CA 95030
Dear Joel Paulson:
RE: Town of Los Gatos’ 6th Cycle (2023-2031) Revised Draft Housing Element
Thank you for submitting the Town of Los Gatos’ revised draft housing element update
received for review on March 31, 2023. Pursuant to Government Code section 65585,
subdivision (b), the California Department of Housing and Community Development
(HCD) is reporting the results of its review. Our review was facilitated by a conversation
on May 10, 2023 with yourself, Jennifer Armer, Planning Manager, Jocelyn Shoopman
and Erin Walter, associate planners. In addition, HCD considered comments from Phil
Koen pursuant to Government Code section 65585, subdivision (c).
The revised draft housing element addresses many statutory requirements described in
HCD’s January 12, 2023 review; however, revisions will be necessary to substantially
comply with State Housing Element Law (Gov. Code, § 65580 et seq). The enclosed
Appendix describes the revisions needed to comply with State Housing Element Law.
For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if
a local government fails to adopt a compliant housing element within 120 days of the
statutory deadline (January 31, 2023), then any rezoning to make prior identified sites
available or accommodate the regional housing needs allocation (RHNA), including for
lower-income households, shall be completed no later than one year from the statutory
deadline. Please be aware, if the Town fails to adopt a compliant housing element
within one year from the statutory deadline, the element cannot be found in substantial
compliance until all necessary rezones pursuant to Government Code sections 65583,
subdivision (c)(1) and 65583.2, subdivision (c) are completed.
Public participation in the development, adoption and implementation of the housing
element is essential to effective housing planning. Throughout the housing element
process, the Town must continue to engage the community, including organizations that
represent lower-income and special needs households, by making information regularly
available while considering and incorporating comments where appropriate. Please be
ATTACHMENT 3
Joel Paulson, Director
Page 2
aware, any revisions to the element must be posted on the local government’s website
and to email a link to all individuals and organizations that have previously requested
notices relating to the local government’s housing element at least seven days before
submitting to HCD.
Chapter 654, Statutes of 2022 (AB 2339), adds specificity on how cities and counties
plan for emergency shelters and ensure sufficient and suitable capacity. Future
submittals of the housing element may need to address these statutory requirements.
For additional information and timing requirements, please see HCD’s memo at
https://www.hcd.ca.gov/sites/default/files/docs/planning-and-community/ab2339-
notice.pdf.
Several federal, state, and regional funding programs consider housing element
compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill
(SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s
Affordable Housing and Sustainable Communities programs; and HCD’s Permanent
Local Housing Allocation consider housing element compliance and/or annual reporting
requirements pursuant to Government Code section 65400. With a compliant housing
element, the Town will meet housing element requirements for these and other funding
sources.
For your information, some general plan element updates are triggered by housing
element adoption. HCD reminds the Town to consider timing provisions and welcomes
the opportunity to provide assistance. For information, please see the Technical
Advisories issued by the Governor’s Office of Planning and Research at:
https://www.opr.ca.gov/planning/general-plan/guidelines.html.
We are committed to assisting the Town in addressing all statutory requirements of
State Housing Element Law. If you have any questions or need additional technical
assistance, please contact Jose Armando Jauregui, of our staff, at
jose.jauregui@hcd.ca.gov.
Sincerely,
Paul McDougall
Senior Program Manager
Enclosure
Town of Los Gatos’ 6th Cycle Revised Draft Housing Element Page 1
May 30, 2023
APPENDIX
TOWN OF LOS GATOS
The following changes are necessary to bring the Town’s housing element into compliance
with Article 10.6 of the Government Code. Accompanying each recommended change, we cite
the supporting section of the Government Code.
Housing element technical assistance information is available on HCD’s website at
https://www.hcd.ca.gov/planning-and-community-development/hcd-memos. Among other
resources, the housing element section contains HCD’s latest technical assistance tool,
Building Blocks for Effective Housing Elements (Building Blocks), available at
https://www.hcd.ca.gov/planning-and-community-development/housing-elements/building-
blocks and includes the Government Code addressing State Housing Element Law and other
resources.
A. Housing Needs, Resources, and Constraints
1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with
Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in
the jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).)
Regional Level Patterns and Trends: The element includes some data and analysis
regarding different patterns for various socio-economic characteristics (race and
income). However, a complete analysis should analyze this data for patterns and trends
at the regional level, comparing the locality to the broader region, including integration
and segregation (race, income, disability, and familial status), disparities in access to
opportunity (education, environmental, transportation, economic), and disproportionate
housing needs (cost burdened, overcrowded, substandard housing conditions,
homelessness, and displacement risks). Please see HCD's January 12, 2023 review for
additional information.
Income and Racial Concentration of Affluence (RCAA): The element states that a RCAA
does not exist; however, the Town is predominantly a high resource category according
to TCAC/HCD Opportunity Maps and is predominantly higher income. These patterns
differ from the surrounding region and the element should include specific analysis of
the Town compared to the region and should formulate policies and programs to
promote an inclusive community. For example, the Town should consider additional
actions (not limited to the Regional Housing Needs Allocation (RHNA)) to promote
housing mobility and improve new housing opportunities throughout the Town.
Disparities in Access to Opportunity: While the element was revised to include the
distances between public schools for each site to a public transit line, it must also
evaluate and compare concentrations of protected groups with access to transportation
options. In addition, it must also analyze any disproportionate transportation needs for
members of protected classes.
Town of Los Gatos’ 6th Cycle Revised Draft Housing Element Page 2
May 30, 2023
Identified Sites and Affirmatively Furthering Fair Housing (AFFH): While the element
was revised with brief conclusions that identified sites do not exacerbate fair housing
conditions, it must also quantify the number of units by income group and location
then evaluate the impact on socio-economic concentrations. Please see HCD's
January 12, 2023 review for additional information.
Local Data, Knowledge and Other Relevant Factors: The element included some
information about regional history, referenced stakeholder comments and discussed the
location of assisted projects and housing choice vouchers. However, the element needs
to provide information and analysis that relates, supports, or supplements the existing
analysis, fair housing conclusions, or contributing factors. The element must consider
other relevant factors that have contributed to certain fair housing conditions. This
analysis must consider information that is unique to the Town or region; such as
governmental and nongovernmental actions; historical land use and zoning practices
(e.g., past redlining/Greenlining, restrictive covenants, planning documents, etc.);
disparities in investment to specific communities including transportation investments;
seeking investment or lack thereof to promote affordability and inclusion; local
initiatives, or other information that may have impeded housing choices and mobility.
Contributing Factors to Fair Housing Issues: The element identifies contributing factors
to fair housing issues. However, these issues and goals do not appear adequate to
facilitate the formulation of meaningful actions to AFFH. The element should re-assess
contributing factors upon completion of analysis and make revisions as appropriate. In
addition, the element must prioritize these factors to better formulate policies and
programs and carry out meaningful actions to AFFH.
2. Include an analysis and documentation of household characteristics, including level of
payment compared to ability to pay, housing characteristics, including overcrowding,
and housing stock condition. (Gov. Code, § 65583, subd. (a)(2).)
Housing Conditions: The element discusses code enforcement violations; however, it
must also provide a Town-wide estimate of the number of units in need of rehabilitation
and replacement.
3. An inventory of land suitable and available for residential development, including vacant
sites and sites having realistic and demonstrated potential for redevelopment during the
planning period to meet the locality’s housing need for a designated income level, and
an analysis of the relationship of zoning and public facilities and services to these sites.
(Gov. Code, § 65583, subd. (a)(3).)
Realistic Capacity: While the element now clarifies that minimum densities are utilized
toward the calculation of realistic capacity; it must still address HCD’s prior finding
regarding the likelihood for 100 percent nonresidential development in zones allowing
100 percent nonresidential uses. Please see HCDs prior review for additional
information.
Nonvacant Sites: The element was not revised to address this finding. Please see
HCD's January 12, 2023 review for additional information.
Town of Los Gatos’ 6th Cycle Revised Draft Housing Element Page 3
May 30, 2023
In addition, specific analysis and actions are necessary if the housing element relies
upon nonvacant sites to accommodate more than 50 percent of the RHNA for lower-
income households. For your information, the housing element must demonstrate
existing uses are not an impediment to additional residential development and will likely
discontinue in the planning period. (Gov. Code, § 65583.2, subd. (g)(2).) Absent
findings (e.g., adoption resolution) based on substantial evidence, the existing uses will
be presumed to impede additional residential development and will not be utilized
toward demonstrating adequate sites to accommodate the RHNA.
Small Sites: The element was not revised to address this finding. Please see HCD's
January 12, 2023 review for additional information.
SB 9 Sites: The element is projecting 96 units that will be developed based on the
passage of SB 9 (Statutes of 2021) to accommodate a portion of its above moderate-
income RHNA. To utilize projections based on SB 9 legislation, the element must; 1)
include a site-specific inventory of sites where SB 9 projections are being applied; 2)
include a nonvacant sites analysis demonstrating the likelihood of redevelopment and
that the existing use will not constitute as an impediment for additional residential use.
The element should list the four two-unit housing development applications and the
seven urban lot splits, and the two development requests on single-family residential
zoned parcels; and Program BL should be revised to implement significant incentives to
encourage and facilitate development. Please see HCD's January 12, 2023 review for
additional information.
Zoning for a Variety of Housing Types (Manufactured Housing): The element was not
revised to address this finding. Please see HCD's January 12, 2023 review for
additional information.
Electronic Sites Inventory: For your information, pursuant to Government Code section
65583.3, the Town must submit an electronic sites inventory with its adopted housing
element. The Town must utilize standards, forms, and definitions adopted by HCD.
While the Town has submitted an electronic sites inventory, if any changes occur, the
Town should submit the revised inventory to HCD as part of any future re-adoption
submittal.
4. An analysis of potential and actual governmental constraints upon the maintenance,
improvement, or development of housing for all income levels, including the types of
housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as
identified in the analysis pursuant to paragraph (7), including land use controls, building
codes and their enforcement, site improvements, fees and other exactions required of
developers, and local processing and permit procedures... (Gov. Code, § 65583, subd.
(a)(5).)
Land Use Controls: The element now lists development standards by zoning district.
However, it must also list and evaluate development standards for the North Forty
Specific Plan, Mixed-Use Commercial, and the High-Density Residential zones. Please
see HCD's January 12, 2023 review for additional information.
Town of Los Gatos’ 6th Cycle Revised Draft Housing Element Page 4
May 30, 2023
Fees and Exaction: The element now compares total fees as a proportion of the total
development costs but still must list the fees that comprise that total and particularly
impact fees then evaluate those total fees for impacts on development costs.
Local Processing and Permit Procedures: While the element provides additional
information on the processing of a typical market rate single or multi-family housing
application, it mentions approval is required by the Development Review Committee
(DRC) (p. C-29). The element must describe and analyze the DRC process, identify and
evaluate approval findings for impacts on housing cost and approval certainty.
Housing for Persons with Disabilities: The prior review found the Town’s reasonable
accommodation procedure contains constraints. For example, subjective language in
approval findings such as “no impact on surrounding uses” can lead to uncertainty of
project approval through a discretionary process. In response, the Town commits
Program BC to revise subjective language criteria to “minimal impact on surround uses”
(p. C-38). However, reasonable accommodation is a unique exception process that
should not contain findings similar to a conditional use permit. Program BC should be
revised to specifically remove the surrounding uses finding.
Inclusionary Zoning Ordinance: While the element now discusses alternatives for
meeting the Town’s inclusionary requirements, it should still describe incentives,
including relationships with state density bonus law and how the level of affordability is
determined.
5. Analyze any special housing needs such as elderly; persons with disabilities, including a
developmental disability; large families; farmworkers; families with female heads of
households; and families and persons in need of emergency shelter. (Gov. Code, §
65583, subd. (a)(7).)
Special Housing Needs: The element was not revised to address this finding. Please
see HCD's January 12, 2023 review for additional information.
B. Housing Programs
1. Include a program which sets forth a schedule of actions during the planning period,
each with a timeline for implementation, which may recognize that certain programs are
ongoing, such that there will be beneficial impacts of the programs within the planning
period, that the local government is undertaking or intends to undertake to implement
the policies and achieve the goals and objectives of the Housing Element... (Gov. Code,
§ 65583, subd. (c).)
Programs must demonstrate that they will have a beneficial impact within the planning
period. Beneficial impact means specific commitment to deliverables, measurable
metrics or objectives, definitive deadlines, dates, or benchmarks for implementation.
Deliverables should occur early in the planning period to ensure actual housing
outcomes. The following programs still must be revised to include specific commitments
and definitive timelines as follows:
Town of Los Gatos’ 6th Cycle Revised Draft Housing Element Page 5
May 30, 2023
• Program M (Lot Consolidation): While the program was revised to facilitate four
units through the lot consolidation process, it should increase the numerical
objective in stride with the need. Specially as the Town is relying on several small
sites to accommodate a portion of lower income RHNA.
• Program S (Affordable Housing Development): The program should increase the
numerical objective to target meaningful outcomes during the planning period.
• Program T (Purchase Affordability Covenants in Existing Apartments): The
element should revise the timeline earlier in the planning period to target a
beneficial impact (e.g., by 2026).
• Program BM (Story Poles and Netting Policy): The program now commits to
review the story pole and netting policy and explore options to reduce costs
affordable housing. However, the program still must commit to an actual
outcome, beyond exploring options. In addition, the program should also
establish alternatives or modifications that promote approval certainty. For
example, the program could remove the requirements or create alternative for
meeting the requirement such as visual renderings.
2. Identify actions that will be taken to make sites available during the planning period with
appropriate zoning and development standards and with services and facilities to
accommodate that portion of the city’s or county’s share of the regional housing need
for each income level that could not be accommodated on sites identified in the
inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and
to comply with the requirements of Government Code section 65584.09. Sites shall be
identified as needed to facilitate and encourage the development of a variety of types of
housing for all income levels, including multifamily rental housing, factory-built housing,
mobilehomes, housing for agricultural employees, supportive housing, single-room
occupancy units, emergency shelters, and transitional housing. (Gov. Code, § 65583,
subd. (c)(1).)
As noted in Finding A3, the element does not include a complete site analysis;
therefore, the adequacy of sites and zoning were not established. Based on the results
of a complete sites inventory and analysis, the Town may need to add or revise
programs to address a shortfall of sites or zoning available to encourage a variety of
housing types.
As noted in the prior review, if necessary to make appropriate zoning available to
accommodate the lower-income RHNA, Program D (Additional Housing Capacity) must
be revised to meet all requirements pursuant to Government Code section 65583.2,
subdivisions (h) and (i). For example, the Program must commit to permit owner-
occupied and rental multifamily uses by-right (without discretionary action) for
developments in which 20 percent or more of the units are affordable to lower-income
households.
3. Address and, where appropriate and legally possible, remove governmental and
nongovernmental constraints to the maintenance, improvement, and development of
housing, including housing for all income levels and housing for persons with
disabilities. The program shall remove constraints to, and provide reasonable
Town of Los Gatos’ 6th Cycle Revised Draft Housing Element Page 6
May 30, 2023
accommodations for housing designed for, intended for occupancy by, or with
supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).)
As noted in Finding A4, the element requires a complete analysis of potential
governmental constraints. Depending upon the results of that analysis, the Town may
need to revise or add programs and address and remove or mitigate any identified
constraints.
4. Promote and affirmatively further fair housing opportunities and promote housing
throughout the community or communities for all persons regardless of race, religion,
sex, marital status, ancestry, national origin, color, familial status, or disability, and other
characteristics... (Gov. Code, § 65583, subd. (c)(5).)
As noted in Finding A1, the element requires a complete AFFH analysis. Depending
upon the results of that analysis, the Town may need to revise or add programs. Actions
listed to address AFFH analysis must have specific commitments, milestones,
geographic targeting and metrics or numerical targets and, as appropriate; address
housing mobility enhancement; new housing choices and affordability in higher
opportunity or higher income areas; place-based strategies for community revitalization
and displacement protection. For example, the element must add significant and
meaningful housing mobility actions to overcome the existing patterns in the Town
related to the broader region. Given, among other things, the Town is entirely in the
highest category of disparities in access to opportunity and largely does not reflect the
socio-economic characteristics of the broader region. The element must include
significant actions to promote housing mobility within the Town and relate to the region
to promote an overall inclusive community. The element could consider improving
existing programs or including new programs.
5. Develop a plan that incentivizes and promotes the creation of accessory dwelling units
that can be offered at affordable rent... (Gov. Code, § 65583, subd. (c)(7).)
Program U Accessory Dwelling Units (ADU): While the program now commits to
annually monitor the production and affordability of ADUs and make adjustments. It
should clarify the types of adjustments that will be considered such as rezoning,
additional incentives, fee reductions, financing programs.
C. Quantified Objectives
Establish the number of housing units, by income level, that can be constructed,
rehabilitated, and conserved over a five-year time frame. (Gov. Code, § 65583, subd. (b)(1
& 2).)
The element now includes quantified objectives for new construction and rehabilitation by
income group but should also include conservation objectives. Please note, conservation
objectives are not limited to at-risk preservation and may include a variety of activities that
promote safe and stable housing such as code enforcement and tenant protections.
Examples of programs that may be utilized include Programs T (Purchase Affordability
Town of Los Gatos’ 6th Cycle Revised Draft Housing Element Page 7
May 30, 2023
Covenants in Existing Apartments), AE (Rental Dispute Resolution), AF (Rental
Assistance), AH (Stabilize Rents) and AQ (Rental Housing Conservation).
D. Public Participation
Local governments shall make a diligent effort to achieve public participation of all
economic segments of the community in the development of the Housing Element, and the
element shall describe this effort. (Gov. Code, § 65583, subd.(c)(9).)
While the element was revised to include the renters survey results and previous outreach
conducted, it must also summarize all public comments and describe how they were
considered and incorporated into the element. HCD’s future review will consider the extent
to which the revised element documents how the Town solicited, considered, and
addressed public comments in the element. The Towns consideration of public comments
must not be limited by HCD’s findings in this review letter. Please see HCD’s prior review
for additional information.
E. Consistency with General Plan
The Housing Element shall describe the means by which consistency will be achieved with
other general plan elements and community goals. (Gov. Code, § 65583, subd. (c)(7).)
While the element identifies Program BG (General Plan Amendment) to ensure consistency
with the General Plan, it should discuss how consistency will be maintained throughout the
entire planning period.
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Response to HCD Comment Letter: Page 1
ATTACHMENT 4
HCD 5/30/23 Comments on Draft Housing Element with Responses 1
Comment
Number HCD Comment (05/30/23 Letter) Response
1 A.Housing Needs, Resources, and Constraints
1.Affirmatively further[ing] fair housing in accordance with
Chapter 15 (commencing with Section 8899.50) of Division 1 of
Title 2…shall include an assessment of fair housing in the
jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).)
Regional Level Patterns and Trends: The element includes some data
and analysis regarding different patterns for various socio-economic
characteristics (race and income). However, a complete analysis
should analyze this data for patterns and trends at the regional level,
comparing the locality to the broader region, including integration
and segregation (race, income, disability, and familial status),
disparities in access to opportunity (education, environmental,
transportation, economic), and disproportionate housing needs (cost
burdened, overcrowded, substandard housing conditions,
homelessness, and displacement risks). Please see HCD's January 12,
2023 review for additional information.
Staff is working with the
Santa Clara County Planning
Collaborative and the AFFH
consultant, Root Policy
Research, on this response
which will likely include
additional newly released
maps.
2 Income and Racial Concentration of Affluence (RCAA): The element
states that a RCAA does not exist; however, the Town is
predominantly a high resource category according to TCAC/HCD
Opportunity Maps and is predominantly higher income. These
patterns differ from the surrounding region and the element should
include specific analysis of the Town compared to the region and
should formulate policies and programs to promote an inclusive
community. For example, the Town should consider additional
actions (not limited to the Regional Housing Needs Allocation
(RHNA)) to promote housing mobility and improve new housing
opportunities throughout the Town.
Staff will request clarification
from HCD: The Housing
Element states that RCAAs do
exist in Los Gatos and that the
Town is entirely an RCAA with
the exception of one census
tract; the comment letter
states otherwise.
See Appendix A, Section A.7
Integration and Segregation,
pages A-32 and A-33 for RCAA
information in the Town’s
March 2023 Draft Revised
Housing Element.
Staff will add text referencing
specific Implementation
Programs which promote
housing mobility and improve
new housing opportunities
throughout the Town.
3 Disparities in Access to Opportunity: While the element was revised
to include the distances between public schools for each site to a
public transit line, it must also evaluate and compare concentrations
Staff is working with the
Santa Clara County Planning
Collaborative and the AFFH
1 All page number references are to pages of the “Draft Revised 2023-2031 Housing Element clean copy” submitted to HCD on March 31, 2023.
Response to HCD Comment Letter: Page 2
of protected groups with access to transportation options. In
addition, it must also analyze any disproportionate transportation
needs for members of protected classes.
consultant, Root Policy
Research, on this response,
which may include additional
mapping showing areas with
concentrations of protected
groups.
4 Identified Sites and Affirmatively Furthering Fair Housing (AFFH):
While the element was revised with brief conclusions that identified
sites do not exacerbate fair housing conditions, it must also quantify
the number of units by income group and location then evaluate the
impact on socio-economic concentrations. Please see HCD's January
12, 2023 review for additional information.
Staff is working with the
Santa Clara County Planning
Collaborative and the AFFH
consultant, Root Policy
Research, on this response.
5 Local Data, Knowledge and Other Relevant Factors: The element
included some information about regional history, referenced
stakeholder comments and discussed the location of assisted
projects and housing choice vouchers. However, the element needs
to provide information and analysis that relates, supports, or
supplements the existing analysis, fair housing conclusions, or
contributing factors. The element must consider other relevant
factors that have contributed to certain fair housing conditions. This
analysis must consider information that is unique to the Town or
region; such as governmental and nongovernmental actions;
historical land use and zoning practices (e.g., past
redlining/Greenlining, restrictive covenants, planning documents,
etc.); disparities in investment to specific communities including
transportation investments; seeking investment or lack thereof to
promote affordability and inclusion; local initiatives, or other
information that may have impeded housing choices and mobility.
This was provided on page
A-11 of the March 2023 Draft
Revised Housing Element.
Staff will continue discussions
with HCD on what additional
details are required for this
comment.
6 Contributing Factors to Fair Housing Issues: The element identifies
contributing factors to fair housing issues. However, these issues and
goals do not appear adequate to facilitate the formulation of
meaningful actions to AFFH. The element should re-assess
contributing factors upon completion of analysis and make revisions
as appropriate. In addition, the element must prioritize these factors
to better formulate policies and programs and carry out meaningful
actions to AFFH.
See Appendix A, Section A.5
Contributing Factors and Fair
Housing Issues, pages A-14
through A-16 in the Town’s
March 2023 Draft Revised
Housing Element.
7 2.Include an analysis and documentation of household
characteristics, including level of payment compared to ability to
pay, housing characteristics, including overcrowding, and housing
stock condition. (Gov. Code, § 65583, subd. (a)(2).)
Housing Conditions: The element discusses code enforcement
violations; however, it must also provide a Town-wide estimate of
the number of units in need of rehabilitation and replacement.
Staff will work with Code
Enforcement and check other
sources for an estimated
number.
8 3.An inventory of land suitable and available for residential
development, including vacant sites and sites having realistic and
demonstrated potential for redevelopment during the planning
period to meet the locality’s housing need for a designated
income level, and an analysis of the relationship of zoning and
Staff will modify the text of
Implementation Program D
to clarify that the North
Forty Specific Plan will be
amended to allow for a
Response to HCD Comment Letter: Page 3
public facilities and services to these sites. (Gov. Code, § 65583,
subd. (a)(3).)
Realistic Capacity: While the element now clarifies that minimum
densities are utilized toward the calculation of realistic capacity; it
must still address HCD’s prior finding regarding the likelihood for 100
percent nonresidential development in zones allowing 100 percent
nonresidential uses. Please see HCDs prior review for additional
information.
density from 30 to 40
dwelling units per acre.
Staff will add narrative
describing the demand for
residential projects within
the Town in general, the
interest expressed in the
Property Owner Interest
forms, and provide examples
of residential developments
in non-residential zones that
have occurred.
Staff will continue
discussions with HCD about
what further materials may
be needed to address this
comment.
9 Nonvacant Sites: The element was not revised to address this finding.
Please see HCD's January 12, 2023 review for additional information.
In addition, specific analysis and actions are necessary if the housing
element relies upon nonvacant sites to accommodate more than 50
percent of the RHNA for lower-income households. For your
information, the housing element must demonstrate existing uses
are not an impediment to additional residential development and
will likely discontinue in the planning period. (Gov. Code, § 65583.2,
subd. (g)(2).) Absent findings (e.g., adoption resolution) based on
substantial evidence, the existing uses will be presumed to impede
additional residential development and will not be utilized toward
demonstrating adequate sites to accommodate the RHNA.
Staff will provide examples of
residential developments that
have occurred on nonvacant
sites, as well as additional
narrative describing the
content and questions of the
Property Owner Interest
forms and their relation to
HCD’s Sites Inventory
Guidebook in order to
address HCD ‘s concern
regarding nonvacant sites.
10 Small Sites: The element was not revised to address this finding.
Please see HCD's January 12, 2023 review for additional information.
Staff will provide examples of
affordable and market-rate
residential developments that
have occurred on sites that
were less than half an acre.
11 SB 9 Sites: The element is projecting 96 units that will be developed
based on the passage of SB 9 (Statutes of 2021) to accommodate a
portion of its above moderate-income RHNA. To utilize projections
based on SB 9 legislation, the element must; 1) include a site-specific
inventory of sites where SB 9 projections are being applied; 2)
include a nonvacant sites analysis demonstrating the likelihood of
redevelopment and that the existing use will not constitute as an
impediment for additional residential use. The element should list
the four two-unit housing development applications and the seven
urban lot splits, and the two development requests on single-family
residential zoned parcels; and Program BL should be revised to
implement significant incentives to encourage and facilitate
development. Please see HCD's January 12, 2023 review for
Staff will continue discussions
with HCD about the proposed
methodology for determining
SB 9 unit counts for the sixth
cycle housing element.
Response to HCD Comment Letter: Page 4
additional information.
12 Zoning for a Variety of Housing Types (Manufactured Housing): The
element was not revised to address this finding. Please see HCD's
January 12, 2023 review for additional information.
This was provided on page C-
8 of the March 2023 Draft
Revised Housing Element.
13 Electronic Sites Inventory: For your information, pursuant to
Government Code section 65583.3, the Town must submit an
electronic sites inventory with its adopted housing element. The
Town must utilize standards, forms, and definitions adopted by HCD.
While the Town has submitted an electronic sites inventory, if any
changes occur, the Town should submit the revised inventory to HCD
as part of any future re-adoption submittal.
Acknowledged.
14 4. An analysis of potential and actual governmental constraints
upon the maintenance, improvement, or development of housing
for all income levels, including the types of housing identified in
paragraph (1) of subdivision (c), and for persons with disabilities as
identified in the analysis pursuant to paragraph (7), including land
use controls, building codes and their enforcement, site
improvements, fees and other exactions required of developers,
and local processing and permit procedures... (Gov. Code, § 65583,
subd.(a)(5).)
Land Use Controls: The element now lists development standards by
zoning district. However, it must also list and evaluate development
standards for the North Forty Specific Plan, Mixed-Use Commercial,
and the High-Density Residential zones. Please see HCD's January 12,
2023 review for additional information.
Staff will modify Table C-2 to
add a column which contains
the General Plan Land Use
designations for each
applicable site and will also
include the development
standards for the North Forty
Specific Plan area.
15 Fees and Exaction: The element now compares total fees as a
proportion of the total development costs but still must list the fees
that comprise that total and particularly impact fees then evaluate
those total fees for impacts on development costs.
This was provided on pages C-
14 through C-26 of the March
2023 Draft Revised Housing
Element.
Staff will continue discussions
with HCD on what additional
details are required for this
comment.
16 Local Processing and Permit Procedures: While the element provides
additional information on the processing of a typical market rate
single or multi-family housing application, it mentions approval is
required by the Development Review Committee
(DRC) (p. C-29). The element must describe and analyze the DRC
process, identify and evaluate approval findings for impacts on
housing cost and approval certainty.
This was provided on page C-
26 of the March 2023 Draft
Revised Housing Element.
Staff will provide additional
narrative regarding the
Development Review
Committee and the required
findings for a residential
project.
17 Housing for Persons with Disabilities: The prior review found the
Town’s reasonable accommodation procedure contains constraints.
For example, subjective language in approval findings such as “no
impact on surrounding uses” can lead to uncertainty of project
Staff will modify
Implementation Program BC
to use HCD’s suggested
language.
Response to HCD Comment Letter: Page 5
approval through a discretionary process. In response, the Town
commits Program BC to revise subjective language criteria to
“minimal impact on surround uses” (p. C-38). However, reasonable
accommodation is a unique exception process that should not
contain findings similar to a conditional use permit. Program BC
should be revised to specifically remove the surrounding uses
finding.
18 Inclusionary Zoning Ordinance: While the element now discusses
alternatives for meeting the Town’s inclusionary requirements, it
should still describe incentives, including relationships with state
density bonus law and how the level of affordability is determined.
This was provided on page C-
31 of the March 2023 Draft
Revised Housing Element
Staff will provide additional
narrative describing the
affordability categories of the
Town’s Below Market Price
Program and its relationship
to the State Density Bonus
law.
19 5. Analyze any special housing needs such as elderly; persons with
disabilities, including a developmental disability; large families;
farmworkers; families with female heads of households; and
families and persons in need of emergency shelter. (Gov. Code, §
65583, subd. (a)(7).)
Special Housing Needs: The element was not revised to address this
finding. Please see HCD's January 12, 2023 review for additional
information.
Staff is working with the
Santa Clara County Planning
Collaborative and the AFFH
consultant, Root Policy
Research, on this response.
20 B. Housing Programs
1. Include a program which sets forth a schedule of actions during
the planning period, each with a timeline for implementation,
which may recognize that certain programs are ongoing, such
that there will be beneficial impacts of the programs within the
planning period, that the local government is undertaking or
intends to undertake to implement the policies and achieve the
goals and objectives of the Housing Element... (Gov. Code, §
65583, subd. (c).)
Programs must demonstrate that they will have a beneficial
impact within the planning period. Beneficial impact means
specific commitment to deliverables, measurable metrics or
objectives, definitive deadlines, dates, or benchmarks for
implementation. Deliverables should occur early in the planning
period to ensure actual housing outcomes. The following
programs still must be revised to include specific commitments
and definitive timelines as follows:
• Program M (Lot Consolidation): While the program was revised
to facilitate four units through the lot consolidation process, it
should increase the numerical objective in stride with the
Staff will make the referenced
modifications by HCD to each
Implementation Program.
Response to HCD Comment Letter: Page 6
need. Specially as the Town is relying on several small sites to
accommodate a portion of lower income RHNA.
• Program S (Affordable Housing Development): The program
should increase the numerical objective to target meaningful
outcomes during the planning period.
• Program T (Purchase Affordability Covenants in Existing
Apartments): The element should revise the timeline earlier in
the planning period to target a beneficial impact (e.g., by
2026).
• Program BM (Story Poles and Netting Policy): The program
now commits to review the story pole and netting policy and
explore options to reduce costs affordable housing. However,
the program still must commit to an actual outcome, beyond
exploring options. In addition, the program should also
establish alternatives or modifications that promote approval
certainty. For example, the program could remove the
requirements or create alternative for meeting the
requirement such as visual renderings.
21 2. Identify actions that will be taken to make sites available
during the planning period with appropriate zoning and
development standards and with services and facilities to
accommodate that portion of the city’s or county’s share of the
regional housing need for each income level that could not be
accommodated on sites identified in the inventory completed
pursuant to paragraph (3) of subdivision (a) without rezoning, and
to comply with the requirements of Government Code section
65584.09. Sites shall be identified as needed to facilitate and
encourage the development of a variety of types of housing for all
income levels, including multifamily rental housing, factory-built
housing, mobile homes, housing for agricultural employees,
supportive housing, single-room occupancy units, emergency
shelters, and transitional housing. (Gov. Code, § 65583, subd.
(c)(1).)
As noted in Finding A3, the element does not include a complete site
analysis; therefore, the adequacy of sites and zoning were not
established. Based on the results of a complete sites inventory and
analysis, the Town may need to add or revise programs to address a
shortfall of sites or zoning available to encourage a variety of housing
types.
As noted in the prior review, if necessary to make appropriate zoning
available to accommodate the lower-income RHNA, Program D
(Additional Housing Capacity) must be revised to meet all
requirements pursuant to Government Code section 65583.2,
subdivisions (h) and (i). For example, the Program must commit to
permit owner-occupied and rental multifamily uses by-right (without
discretionary action) for developments in which 20 percent or more
of the units are affordable to lower-income households.
Staff will modify the language
of Implementation Program D
to utilize language already
included in Implementation
Program BH as the sites
located within the North
Forty Specific Plan area are
re-use sites from the Town’s
fifth cycle Housing Element
pursuant to Government
Code section 65583.2,
subdivisions (h) and (i).
Response to HCD Comment Letter: Page 7
22 3. Address and, where appropriate and legally possible, remove
governmental and nongovernmental constraints to the
maintenance, improvement, and development of housing,
including housing for all income levels and housing for persons
with disabilities. The program shall remove constraints to, and
provide reasonable accommodations for housing designed for,
intended for occupancy by, or with supportive services for,
persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).)
As noted in Finding A4, the element requires a complete analysis of
potential governmental constraints. Depending upon the results of
that analysis, the Town may need to revise or add programs and
address and remove or mitigate any identified constraints.
This was provided, starting on
page C-1 of the March 2023
Draft Revised Housing
Element.
Staff will continue discussions
with HCD on this comment
and, additionally can add
narrative describing proposed
Implementation Programs
that are reducing
governmental constraints.
23 4. Promote and affirmatively further fair housing opportunities
and promote housing throughout the community or communities
for all persons regardless of race, religion, sex, marital status,
ancestry, national origin, color, familial status, or disability, and
other characteristics... (Gov. Code, § 65583, subd. (c)(5).)
As noted in Finding A1, the element requires a complete AFFH
analysis. Depending upon the results of that analysis, the Town may
need to revise or add programs. Actions listed to address AFFH
analysis must have specific commitments, milestones, geographic
targeting and metrics or numerical targets and, as appropriate;
address housing mobility enhancement; new housing choices and
affordability in higher opportunity or higher income areas; place-
based strategies for community revitalization and displacement
protection. For example, the element must add significant and
meaningful housing mobility actions to overcome the existing
patterns in the Town related to the broader region. Given, among
other things, the Town is entirely in the highest category of
disparities in access to opportunity and largely does not reflect the
socio-economic characteristics of the broader region. The element
must include significant actions to promote housing mobility within
the Town and relate to the region to promote an overall inclusive
community. The element could consider improving existing programs
or including new programs.
Staff is working with the
Santa Clara County Planning
Collaborative and the AFFH
consultant, Root Policy
Research, on this response.
24 5. Develop a plan that incentivizes and promotes the creation of
accessory dwelling units that can be offered at affordable rent...
(Gov. Code, § 65583, subd. (c)(7).)
Program U Accessory Dwelling Units (ADU): While the program now
commits to annually monitor the production and affordability of
ADUs and make adjustments. It should clarify the types of
adjustments that will be considered such as rezoning, additional
incentives, fee reductions, financing programs.
Staff will add narrative
describing the newly
streamlined ADU permit
process and Implementation
Programs aimed at
incentivizing the creation of
new ADU’s.
25 C. Quantified Objectives
Establish the number of housing units, by income level, that can be
constructed, rehabilitated, and conserved over a five-year time
Staff will modify the
document to include
conservation objectives as
Response to HCD Comment Letter: Page 8
frame. (Gov. Code, § 65583, subd. (b)(1 & 2).)
The element now includes quantified objectives for new construction
and rehabilitation by income group but should also include
conservation objectives. Please note, conservation objectives are not
limited to at-risk preservation and may include a variety of activities
that promote safe and stable housing such as code enforcement and
tenant protections. Examples of programs that may be utilized
include Programs T (Purchase Affordability Covenants in Existing
Apartments), AE (Rental Dispute Resolution), AF (Rental Assistance),
AH (Stabilize Rents) and AQ (Rental Housing Conservation).
directed by HCD.
26 D. Public Participation
Local governments shall make a diligent effort to achieve public
participation of all economic segments of the community in the
development of the Housing Element, and the element shall
describe this effort. (Gov. Code, § 65583, subd.(c)(9).)
While the element was revised to include the renters survey
results and previous outreach conducted, it must also summarize
all public comments and describe how they were considered and
incorporated into the element. HCD’s future review will consider
the extent to which the revised element documents how the
Town solicited, considered, and addressed public comments in the
element. The Towns consideration of public comments must not
be limited by HCD’s findings in this review letter. Please see HCD’s
prior review for additional information.
Staff will add narrative
summarizing all public
comments received and how
they were considered and
incorporated into the
document.
27 E. General Plan Consistency
The Housing Element shall describe the means by which
consistency will be achieved with other general plan elements and
community goals. (Gov. Code, § 65583, subd. (c)(7).)
While the element identifies Program BG (General Plan Amendment)
to ensure consistency with the General Plan, it should discuss how
consistency will be maintained throughout the entire planning
period.
Staff will add narrative
describing how consistency
with the General Plan will be
maintained throughout the
entire planning period.