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16 Attachment 2 - Draft Ordinance for the Zoning Amendment with Exhibit A 1 of 4 Ordinance Date DRAFT ORDINANCE 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” ZONING CODE AMENDMENT APPLICATION Z-23-002 PROPERTY LOCATION: TOWN WIDE APPLICANT: TOWN OF LOS GATOS WHEREAS, the Town of Los Gatos 2023-2031 Housing Element identifies amending the Town Code to create the Housing Element Overlay Zone as a strategy to accommodate the Town’s Regional Housing Needs Allocation (RHNA); and WHEREAS, the Planning Commission at its meeting on August 23, 2023, reviewed the proposed Town Code amendments , held a public hearing, and forwarded a recommendation of approval to the Town Council; and WHEREAS, the Town Council at its meeting on October 3, 2023, reviewed the proposed Town Code amendment, held a public hearing, and adopted the ordinance to amend the Town Code to modify the Affordable Housing Overlay Zone to be the Housing Element Overlay Zone; and WHEREAS, because the project description in the public hearing notice did not include the Planning Commission’s recommendation, the item has been re-noticed for the Town Council’s consideration; and WHEREAS, this matter was regularly noticed in conformance with State and Town law and came before the Town Council for public hearing on November 7, 2023; and WHEREAS, the Town Council accepted the report of the Planning Commission’s recommendation of approval for the proposed Town Code amendment and held a public hearing; and WHEREAS, the Town Council considered all facts and information related to a request to amend the Town Code as shown on Exhibit A. Draft Ordinance: subject to modification by Town Council based on deliberations and direction. ATTACHMENT 2 2 of 4 Ordinance Date NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY ORDAIN AS FOLLOWS: SECTION I. FINDINGS The Town Council finds as follows: A. No further Environmental Analysis is required as an Environmental Impact Report (EIR) was prepared and certified for the 2040 General Plan Update on June 30, 2022, which included the proposed Zoning Code amendments; and B. The Town Code Amendments are consistent with the General Plan and its elements in that the proposed zonings are consistent with the proposed General Plan land use designations; and C. That all proceedings have been conducted in compliance with the provisions of Government Code Section 65850 et seq.; and SECTION II. AMENDMENTS Chapter 29, Article VIII., Division 5 of the Town Code is hereby amended to read as follows: ARTICLE VIII. OVERLAY ZONES AND HISTORIC PRESERVATION … DIVISION 5. HOUSING ELEMENT OVERLAY ZONE Sec. 29.80.505. Intent. The Housing Element Overlay Zone (HEOZ) ordinance in this division is intended to increase the supply and the mix of housing types, tenure, and affordability within the Town of Los Gatos. Through appropriate densities, concessions, and fee deferrals or waivers, the HEOZ encourages the development of housing affordable to all income levels on sites within the Town that are deemed to be most appropriate for such uses. The Housing Element lists sites within the Town of Los Gatos as key housing opportunities. The designation of these sites will assist the Town in meeting its Regional Housing Needs Allocation (RHNA), as required by the State. Sec. 29.80.510. HEOZ and underlying zoning. A property that has the HEOZ designation may be developed with a residential or mixed- use project with a residential use occupying more than 50 percent of the total floor area based on the standards provided in this division or, where standards are not specified, then based on 3 of 4 Ordinance Date the standards provided in the underlying zone. The underlying zoning development standards will remain in effect for all other development without a residential component. Pursuant to Government Code Section 65583.2(i), by right development will be allowed when 20 percent or more of the units are affordable to lower income households. Sec. 29.80.515. HEOZ general development standards. A proposed residential project, including a mixed-use project with a residential use occupying more than 50 percent of the total floor area within the HEOZ shall be designed and constructed in conformity with the development standards for the corresponding zoning and General Plan Land Use designation in Table 1A (Overlay Zones Development Standards). Regardless of the underlying zoning designation, no residential project or mixed-use project with a residential use occupying more than 50 percent of the total floor area may be developed that does not meet the applicable HEOZ development standards. 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 SECTION III. CEQA. 4 of 4 Ordinance Date An Environmental Impact Report was prepared and certified for the 2040 General Plan Update on June 30, 2022, which included the proposed Zoning Code amendments. No further environmental analysis is required. SECTION IV. Publication. In accordance with Section 63937 of the Government Code of the State of California, this Ordinance takes effect 30 days from the date of its passage. The Town Clerk shall cause this ordinance or a summary thereof to be published in accordance with Section 36933 of the California Government Code. SECTION V. Effective Date. This Ordinance was introduced at a regular meeting of the Town Council of the Town of Los Gatos on the 7th day of November 2023, and adopted by the following vote as an ordinance of the Town of Los Gatos at a regular meeting of the Town Council of the Town of Los Gatos on the __day of ______ 2023, by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA DATE: __________________ ATTEST: 5 of 4 Ordinance Date TOWN CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA DATE: __________________ Chapter 29 - ZONING REGULATIONS ARTICLE VIII. - OVERLAY ZONES AND HISTORIC PRESERVATION DIVISION 5. HOUSING ELEMENT OVERLAY ZONE DIVISION 5. HOUSING ELEMENT OVERLAY ZONE Sec. 29.80.505. Intent. The Housing Element Overlay Zone (HEOZ) ordinance in this division is intended to increase the supply and the mix of housing types, tenure, and affordability within the Town of Los Gatos. Through appropriate densities, concessions, and fee deferrals or waivers, the HEOZ encourages the development of housing affordable to all income levels on sites within the Town that are deemed to be most appropriate for such uses. The Housing Element lists sites within the Town of Los Gatos as key housing opportunities. The designation of these sites will assist the Town in meeting its Regional Housing Needs Allocation (RHNA), as required by the State. Sec. 29.80.510. HEOZ and underlying zoning. A property that has the HEOZ designation may be developed with a residential or mixed-use project with a residential use occupying more than 50 percent of the total floor area based on the standards provided in this division or, where standards are not specified, then based on the standards provided in the underlying zone. The underlying zoning development standards will remain in effect for all other development without a residential component. Pursuant to Government Code Section 65583.2(i), by right development will be allowed when 20 percent or more of the units are affordable to lower income households. Sec. 29.80.515. HEOZ general development standards. A proposed residential project, including a mixed-use project with a residential use occupying more than 50 percent of the total floor area within the HEOZ shall be designed and constructed in conformity with the development standards for the corresponding zoning and General Plan Land Use designation in Table 1A (Overlay Zones Development Standards). Regardless of the underlying zoning designation, no residential project or mixed- use project with a residential use occupying more than 50 percent of the total floor area may be developed that does not meet the applicable HEOZ development standards. 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 Page 1 of 2 EXHIBIT A 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 Page 1 of 2