16 Attachment 3 - Draft Town Code Amendments with Tracked ChangesChapter 29, Article VIII., Division 5 of the Town Code is hereby amended to remove the
following strikeouts (strikeouts) indicating deleted text and include underlining (underlining)
indicating new text:
Sec. 29.80.505. Intent.
The affordable housing overlay zone (AHOZ) 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
affordable housing overlay zone encourages the development of housing affordable to all
income levels on one (1) property within the Town that is deemed to be most appropriate for
such uses. The housing element lists the one (1) property within the Town of Los Gatos as a key
housing opportunity site for mixed income affordable housing projects. The designation of this
site will assist the Town in meeting its fair share of the region's housing needs required by the
State.
Sec. 29.80.510. AHOZ and underlying zoning.
A property that has the AHOZ designation may be developed either in the manner
provided in this division or the manner provided in the underlying zone, but not both; use of
the overlay zone and the underlying zone are mutually exclusive alternatives. Once the land has
developed in the manner provided in the underlying zoning, the property owner shall relinquish
the right to redevelop the land using the AHOZ overlay.
Sec. 29.80.515. Applicability of regulations.
(a) This division applies to the one (1) property listed on Table 6-1 of Chapter 6 (Housing Sites
Inventory) of the 2015-23 Housing Element Technical Appendix and as identified below:
Affordable housing overlay zone (AHOZ) property:
1. Southbay Development, Knowles Drive east of Winchester Boulevard, APN 424-32-077
(b) The provisions of this division shall not apply if an applicant requests to use the General
Plan Density Bonus Policy (HOU-1.3). If the applicant submits a development project
application utilizing this density bonus program, the base density on which the bonus is
calculated shall be the density of the existing zoning of the property.
Sec. 29.80.520. Qualification.
In order to qualify for the benefits of this overlay zone, residential development projects
shall comply with all of the following:
ATTACHMENT 3
(a) Include the following minimum percentage of total units in the development with rents or
sales prices that are restricted to the area median income household affordability levels
noted below. The income limits shall be established based on the current year area median
income for Santa Clara County as set by the appropriate State or Federal government
housing agencies. Required unit affordability levels
Site Low and/or Very Low and Below Moderate and/or Above Moderate
Southbay Development
(APN 424-32-077)
40% 60%
(b) Based on a recommendation by the Planning Commission after its review of a project, the
Town Council may approve a modification to the affordability ratios in subsection (a) if the
applicant can demonstrate with actual project specific pro forma, financial and local market
data, that a specific ratio is not financially feasible. The Town Council may only approve a
modification to a ratio if the overall Regional Housing Needs Allocation (RHNA) unit
production for an individual income category (e.g. very low, low and moderate income) has
been achieved by the Town during the applicable housing element period.
(c) Ensure that affordable units are deed-restricted for a period of not less than fifty-five (55)
years, or for the longest feasible time. An affordable housing agreement shall be executed
prior to recording any final map for the underlying property or prior to the issuance of any
building permit for the housing development, whichever comes first, unless the Community
Development Director approves an alternative phasing plan, at which time the affordable
housing agreement shall be executed no later than the issuance of the certificate for the
fifty-first percent of the market rate units. The affordable housing agreement shall be
binding on all future owners and successors of interest of the housing development.
Sec. 29.80.525. Permitted uses in the AHOZ.
(a) Multifamily dwellings;
(b) Two-family dwellings;
(c) Single-family dwellings.
Sec. 29.80.530. Conditional uses permitted.
No conditional use permit shall be required for a housing development that meets the
intent and regulations contained in this division.
Sec. 29.80.535. Application.
Residential developments using the AHOZ standards shall be required to submit
applications for architecture and site review. The application shall be subject to review by the
Planning Commission with a recommendation to Town Council and the review by Town Council
shall be final.
Sec. 29.80.540. Affordable housing overlay zones general development standards.
Proposed development within the affordable housing overlay zones shall be designed and
constructed in conformity with the development standards in Table 1A (Overlay Zones
Development Standards) and Table 1B (Overlay Zones Development Setbacks).
Table 1A (Overlay Zones Development Standards)
Site Maximum
Lot
Coverage
Maximum
Height Limit
(ft)1
Density
Units Per
Acre
Parking Ratio2
Southbay Development (APN
424-32-077)
40% 30 feet
w/separate
garage;
35 feet
w/integrated
garage
20 0—1 bedroom: 1 space
2—3 bedrooms: 2 spaces
4+ bedrooms: 2.5 spaces
1. Building height is increased to 35 feet for residential products that integrate the garage on the first floor, underground or is constructed on a parking podium. Additional height increase may be granted through the architecture and site review process.
2. Tandem parking is permitted.
Table 1B (Overlay Zones Development Setbacks)
Site Required Setbacks
Southbay Development (APN 424-
32-077)
25 ft. from Knowles Avenue property line;
40 ft. from Los Gatos Creek property line;
25 ft. from Southwest Property Line;
West and internal setbacks to be determined by architecture and site
review process
Sec. 29.80.545. Affordable housing overlay zones development incentives.
(a) Concessions and incentives. Applications meeting the intent of the AHOZ will be
automatically granted four (4) concessions at the applicant's sole discretion. The
concessions are reductions in the development standards specified in this section, and
processing fee waivers. The following development incentives are available to qualifying
residential developments within an AHOZ:
(1) Parking standards. Parking standards may be reduced if a parking reduction is
requested as one (1) of the four (4) concessions. Parking may be reduced as follows:
a. Reduction to one (1) space per unit for units reserved for seniors or persons with
disabilities.
b. Reduction to one (1) space per unit for developments within one-quarter (¼)
mile to the proposed Vasona Light Rail Station.
(2) Property setbacks. Any two (2) property setbacks may be reduced by up to fifty (50)
percent if an applicant selects the setback reduction as one (1) of the four (4)
concessions. The two (2) setback reductions are considered one (1) concession.
(3) Lot coverage. The lot coverage may be increased up to fifty (50) percent if the
applicant selects the lot coverage increase as one (1) of the four (4) concessions.
(4) Processing fees. The Town shall waive or defer planning, engineering, and building
processing fees, except those that are paid directly to Town consultants or for
technical studies.
The developer can select one (1) of the following types of fees to be waived as one (1)
of the four (4) available concessions:
a. Planning and engineering application fees (but not Town consultant fees).
b. Building plan check and inspection fees.
c. Construction mitigation fee.
The fees selected shall be waived if the applicant selects a fee waiver as one (1) of the
four (4) automatically granted concessions.
If the developer selects a deferral of all fees noted above rather than a waiver, the
fees shall be deferred to the time of issuance of the certificate of occupancy for each
unit.
(5) Priority processing. The Town shall give qualifying projects the highest processing
priority for planning entitlements, building plan check and building inspection.
Sec. 29.80.550. Architecture and site review process.
(a) Affordable housing overlay zone design guidelines. All projects shall comply with the
adopted affordable housing overlay zone design guidelines in effect at the time of
entitlement approval.
(b) Architecture and site approval. All projects shall require an architecture and site
application approval. The Planning Commission shall review each project and make a
recommendation to the Town Council. The Town Council is the final decision making
authority for AHOZ applications. The Town Council shall adopt a resolution that documents
the architecture and site application decision.
(1) Architectural design. Affordable units within a mixed affordable/market rate
development may be allowed to vary in interior and exterior design and square footage
from market rate units as long as the project remains architecturally harmonious as
determined by the approval body. Attached units, smaller (in square footage) units and
other design variations from market rate units may be permitted within reason to
reduce costs of providing affordable units subject to the required architecture and site
approval process.
(c) Environmental review. All projects shall be subject to the requirements of the California
Environmental Quality Act.
(d) Findings. In order to qualify for a height increase over the maximum stated in Table 1A, the
Planning Commission shall make a recommendation and the Town Council shall find that:
(1) The building massing and dimensional ratios of proposed building components create
a harmonious visual balance and contribute to the architectural character of the
project or its surroundings.
(2) The height increase is necessary to achieve excellence in architectural design and
cannot be accommodated through alternative means such as reducing overall floor to
ceiling heights.
(e) Timing of affordable unit construction. Affordable units must be constructed concurrently
with market-rate units. The affordable units shall be integrated into the market rate
component of the plan to the greatest extent feasible. If complete integration cannot be
achieved, the applicant shall provide justification for not meeting the intent of this section
and why such integration is not feasible. The applicant shall submit a plan of the affordable
and market rate unit distribution in the development to the Town. The Planning
Commission shall review and make a recommendation on the affordable and market rate
unit distribution plan and the Town Council shall review the final plan for approval.
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 for mixed income affordable housing
projects. 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 residential 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