05 Staff Report.Amendment to GP and Zoning
PREPARED BY: Jocelyn Shoopman and Erin Walters
Associate Planner and Associate Planner
Reviewed by: Town Manager, Community Development Director, Planning Manager, and Town
Attorney
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6872
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 08/23/2023 ITEM NO: 5
DATE: September 28, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Consider a Resolution to Amend the General Plan to Include a Description of
the Housing Element Overlay Zone and Introduce an Ordinance Titled “An
Ordinance of the Town Council of the Town of Los Gatos Amending Chapter
29, “Zoning Regulations,” of the Town Code to Replace the Affordable
Housing Overlay Zone Division 5 of Article VIII, “Overlay Zones and Historic
Preservation,” With the Housing Element Overlay Zone As Division 5 of Article
VIII, “Overlay Zones and Historic Preservation.” An Environmental Impact
Report (EIR) was Prepared and Certified for the 2040 General Plan Update on
June 30, 2022, Which Included the Proposed General Plan Amendments. No
Further Environmental Analysis is Required. Zoning Code Amendment
Application Z-23-002 and General Plan Amendment Application GP-23-002.
Project Location: Town Wide. Applicant: Town of Los Gatos.
RECOMMENDATION:
Adopt a resolution to amend the General Plan to include a description of the Housing Element
Overlay Zone and introduce an ordinance, titled “An Ordinance of the Town Council of the
Town of Los Gatos amending Chapter 29, “Zoning Regulations,” of the Town Code to replace
the Affordable Housing Overlay Zone Division 5 of Article VIII, “Overlay Zones And Historic
Preservation,” with the Housing Element Overlay Zone as Division 5 of Article VIII, “Overlay
Zones and Historic Preservation.”
BACKGROUND:
The Town of Los Gatos is required to prepare an updated Housing Element for the period
covering 2023-2031 that is certified by the State Housing and Community Development
Department (HCD). The Housing Element is one of nine State-mandated elements that must be
included in every General Plan. The Housing Element assesses housing needs for all income
PAGE 2 of 6 SUBJECT: General Plan Amendment and Housing Element Overlay Zone/Z-23-002 and GP-23-002 DATE: September 28, 2023
groups within the community and identifies implementation programs to meet those housing
needs. Unlike other General Plan elements, the Housing Element must be updated every eight
years, rather than every 10 to 20 years, must address statutory requirements regarding its
BACKGROUND (continued):
content, and is subject to mandatory review by HCD. The Town’s Regional Housing Needs
Allocation (RHNA) for the sixth cycle planning period is 1,993 units.
On January 30, 2023, the Town Council adopted the 2023-2031 Housing Element with
modifications to the Sites Inventory, finding that it was in substantial compliance with State
law. Two of the Implementation Programs contained in the Housing Element adopted by Town
Council are the basis for the items under consideration and described in further detail below.
On May 30, 2023, the Town received HCD’s findings/comment letter on the Revised Draft
Housing Element. The findings/comment letter is in reference to the Town’s Housing Element
submitted to HCD on March 31, 2023.
On July 20, 2023, at a special meeting, the General Plan Committee (GPC) reviewed the
requests described below and recommended approval of the General Plan amendments to the
Planning Commission and Town Council.
On August 23, 2023, the Planning Commission met to discuss the amendments to the 2020
General Plan Land Use Element and Chapter 29 of the Town Code and made a recommendation
to the Town Council. The Planning Commission received and considered public comments on
the proposed amendments, reviewed the proposed modifications, and unanimously
recommended approval to Town Council (Attachments 4 through 7).
DISCUSSION:
The Planning Commission reviewed and discussed the proposed amendments to the 2020
General Plan Land Use Element and Chapter 29 of the Town Code and had no recommended
modifications.
A. General Plan Land Use Designation
The 2023-2031 Housing Element includes Implementation Programs that involve an overlay
zoning of parcels within the Town to provide modified development standards for
residential and mixed-use developments. The purpose of these modified development
standards is to provide the development capacity required by State law and the Town’s
RHNA, as mentioned above. The first step in creating the new minimum and maximum
densities referenced in these Implementation Programs is the addition of the Housing
PAGE 3 of 6 SUBJECT: General Plan Amendment and Housing Element Overlay Zone/Z-23-002 and GP-23-002 DATE: September 28, 2023
Element Overlay Zone (HEOZ) and the associated development standards in the 2020
General Plan Land Use Element. In addition to density, those development standards also
DISCUSSION (continued):
include lot coverage, floor area, and height, as provided below in Table LU-2 and included in
the draft resolution (Attachment 1).
The Town received public comments suggesting a future need to add sites to the Sites
Inventory as a result of No Net Loss law. In response to these comments, the modifications
shown below in underlined text to Table LU-2, HEOZ Development Standards were
considered and recommended for approval by the Planning Commission to ensure that
standards are included for all land use designations. Given the requirements of No Net Loss
law, the addition of sites to the Sites Inventory may be required in the future as sites on the
current inventory are developed, and so establishing regulations for all designations is
recommended.
Table LU-2 HEOZ Development Standards
Designation Standards
Low Density Residential Density: 0 – 5 du/ac
Lot Coverage: Up to 50%
Max. Height: 30 feet
Medium Density Residential Density: 14 – 22 du/ac
Density in Very High Fire Hazard
Severity Zones: 5 – 12 du/ac
Lot Coverage: Up to 75%
Max. Height: 35 feet
High Density Residential Density: 30 – 40 du/ac
Lot Coverage: Up to 75%
Max. Height: 45 feet
Mixed-Use Density: 30 – 40 du/ac FAR: Up to 3.0
Max. Height: 45 feet
Neighborhood Commercial Density: 10 – 20 du/ac
FAR: Up to 1.0
Max. Height: 35 feet
Central Business District Density: 20 – 30 du/ac
FAR: Up to 2.0 Max. Height: 45 feet
North Forty Specific Plan Density: 30 – 40 du/ac
FAR: As defined in Specific Plan
Max. Height: As defined in Specific Plan
Office Professional Density: 10 – 20 du/ac
FAR: Up to 1.0
Max. Height: 35 feet
PAGE 4 of 6 SUBJECT: General Plan Amendment and Housing Element Overlay Zone/Z-23-002 and GP-23-002 DATE: September 28, 2023
Service Commercial Density: none
FAR: Up to 1.0
Max. Height: 35 feet
Light Industrial Density: none
FAR: Up to 1.0
Max. Height: 35 feet
DISCUSSION (continued):
B. Zoning
Due to changes to State law, many components of the Affordable Housing Overlay Zone
(AHOZ) are no longer compliant with State law. Staff expects the replacement of the AHOZ
with the HEOZ will provide greater flexibility for residential and mixed-use projects in order
to create more potential for the development of housing.
In response to public comments received regarding adding sites to the current Sites
Inventory, the Planning Commission considered and recommended approval of the
modifications shown in underlined text to Table 1A (HEOZ Development Standards), shown
on the following page to reflect the possibility of adding sites to the Sites Inventory in the
future as sites on the current inventory are approved for development (Attachment 2).
At the August 23, 2023, Planning Commission meeting, staff verbally notified the
Commission of a modification that would be made to Table 1A to specify the density for the
North Forty Specific Plan Area. Additionally, staff has made edits to the draft ordinance to
further describe that a property with a HEOZ designation may be developed under the new
regulations as a residential or mixed-use project (Attachment 2, Exhibit A). Non-residential
projects will be subject to the development standards of the underlying zone.
PAGE 5 of 6 SUBJECT: General Plan Amendment and Housing Element Overlay Zone/Z-23-002 and GP-23-002 DATE: September 28, 2023
DISCUSSION (continued):
Table 1A (HEOZ Development Standards)
General Plan
Land Use
Designation
Zoning Minimum Yards Maximum
Lot
Coverage
Maximum
Floor Area
Ratio (FAR)
Maximum
Height
Limit (ft)
Density
Units Per Acre
Low Density
Residential
R-1 As authorized by
Section 29.40.405
50% N/A 30 feet 0-5
Medium Density
Residential
R-1D, R-D,
and R-M
As authorized by
Section 29.40.405,
29.40.530, and
29.40.645
75% N/A 35 feet 14-22 or 5-12
in Very High
Fire Hazard
Severity Zones
High Density
Residential
R-M As authorized by
Section 29.40.645
75% N/A 45 feet 30-40
Mixed-Use CH As authorized by Section 29.60.435 N/A 3.0 45 feet 30-40
Neighborhood
Commercial
C-1 As authorized by
Section 29.60.225
N/A 1.0 35 feet 10-20
Central Business
District
C-2 As authorized by
Section 29.60.335
N/A 2.0 45 feet 20-30
North Forty
Specific Plan
NF-SP As defined in
Specific Plan
As defined
in Specific
Plan
As defined
in Specific
Plan
As defined
in Specific
Plan
30-40
Office
Professional
O As authorized by
Section 29.60.100
N/A 1.0 35 feet 10-20
Service
Commercial
LM As authorized by
Section 29.70.125
N/A 1.0 35 feet none
Light Industrial CM As authorized by
Section 29.70.235
N/A 1.0 35 feet none
PUBLIC COMMENTS:
Public notification has included a legal ad in the paper. The meeting has also been publicized
on the Town’s website and through the Town’s social media platforms. As of the drafting of this
report, no comments from the public have been received.
CONCLUSION:
Staff recommends that the Town Council:
1. Make the finding that no further environmental analysis is required (Attachments 1 and
Attachment 2);
2. Adopt a resolution to amend the 2020 General Plan Land Use Element to include a
description of the HEOZ (Attachment 1); and
3. Introduce an ordinance, by title only, effecting an amendment to the Town Code to replace
the AHOZ of Division 5, Article VIII, “Overlay Zones and Historic Preservation,” with the
PAGE 6 of 6 SUBJECT: General Plan Amendment and Housing Element Overlay Zone/Z-23-002 and GP-23-002 DATE: September 28, 2023
CONCLUSION (continued):
HEOZ (Attachment 2) with any specific changes identified and agreed upon by the majority
of the Town Council.
A. Alternatives
Alternatively, the Council may:
1. Continue this item to a date certain with specific direction to staff; or
2. Refer the item back to the Planning Commission with specific direction.
ENVIRONMENTAL ASSESSMENT:
An Environmental Impact Report (EIR) was prepared and certified for the 2040 General Plan
Update on June 30, 2022, which included the proposed General Plan Amendments. No further
environmental analysis is required.
ATTACHMENTS:
1. Draft Resolution for the General Plan Amendment with Exhibit A
2. Draft Ordinance for the Zoning Amendment with Exhibit A
3. Draft Town Code Amendments in Tracked Changes
4. August 23, 2023, Planning Commission Staff Report with Exhibits 1-3
5. August 23, 2023, Planning Commission Addendum with Exhibit 4
6. August 23, 2023, Planning Commission Desk Item with Exhibits with Exhibit 5
7. August 23, 2023, Planning Commission Verbatim Minutes
8. Public Comment received between 11:01 a.m., Wednesday, August 23, 2023, and 11:00
a.m., Thursday, September 28, 2023