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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 Intentionally Left Blank 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 Town of Los Gatos 6th Cycle (2023-2031) Draft Housing Element Page 5 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: Town of Los Gatos 6th Cycle (2023-2031) Draft Housing Element Page 6 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 Town of Los Gatos 6th Cycle (2023-2031) Draft Housing Element Page 7 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).) Town of Los Gatos 6th Cycle (2023-2031) Draft Housing Element Page 8 January 12, 2023 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). Town of Los Gatos 6th Cycle (2023-2031) Draft Housing Element Page 9 January 12, 2023 • 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. This Page Intentionally Left Blank 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. This Page Intentionally Left Blank 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.