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Ord 2347 - 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"ORDINANCE 2347 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 VIll, "OVERLAY ZONES AND HISTORIC PRESERVATION," WITH THE HOUSING ELEMENT OVERLAY ZONE AS DIVISION 5 OF ARTICLE Vlll, "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 was re -noticed for the Town Council's consideration; and WHEREAS, November 7, 2023, 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 in Exhibit A and voted to introduce the Ordinance; 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 21, 2023. Iof4 Ordinance 2347 November 21, 2023 NOW, THEREFORE, BE IT ORDAINED by the Town Council of the Town of Los Gatos as follows: SECTION I. CEQA. 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. Chapter 29, Article Vill., Division 5 of the Town Code is hereby amended to read as follows: ARTICLE Vill. 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 2of4 Ordinance 2347 November 21, 2023 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 Zoning Minimum Yards Maximum Maximum Maximum Density Land Use Lot Floor Area Height Units Per Acre Designation Coverage Ratio (FAR) Limit (ft) Low Density R-1 As authorized by 50% N/A 30 feet 0-5 Residential Section 29.40.405 Medium Density R-1D, R-D, As authorized by 75% N/A 35 feet 14-22 or 5-12 Residential and R-M Section 29.40.405, in Very High 29.40.530, and Fire Hazard 29.40.645 1 Severity Zones High Density R-M As authorized by 75% N/A 45 feet 30-40 Residential Section 29.40.645 Mixed -Use CH As authorized by N/A 3.0 45 feet 30-40 Section 29.60.435 Neighborhood C-1 As authorized by N/A 1.0 35 feet 10-20 Commercial Section 29.60.225 Central Business C-2 As authorized by N/A 2.0 45 feet 20-30 District Section 29.60.335 North Forty NF-SP As defined in As defined As defined As defined 30-40 Specific Plan Specific Plan in Specific in Specific in Specific Plan Plan Plan Office 0 As authorized by N/A 1.0 35 feet 10-20 Professional Section 29.60.100 Service LM As authorized by N/A 1.0 35 feet none Commercial Section 29.70.125 Light Industrial CM As authorized by N/A 1.0 35 feet none Section 29.70.235 3 of Ordinance 2347 November 21, 2023 SECTION III. Effective Date. This Ordinance was introduced at a regular meeting of the Town Council of the Town of Los Gatos on the 71" 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 2111 day of November, 2023. This ordinance shall take effect 30 days after the date it is adopted. The Town Clerk shall cause this ordinance or a summary thereof to be published in accordance with Section 36933 of the California Government Code. COUNCIL MEMBERS AYES: Matthew Hudes, Rob Moore, Rob Rennie, Mayor Maria Ristow NAYS: None ABSENT: None ABSTAIN: Mary Badame SIGNEA MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA DATE: It -Z 2 - 2S ATTEST: TON1N CLEW, OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA DATE: It qa 1 a2s 4 of Ordinance 2347 November 21, 2023 Chapter 29 -ZONING REGULATIONS ARTICLE Vill. -OVERLAY ZONES AND HISTORIC PRESERVATION DIVISION S. 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 Zoning Minimum Yards Maximum Maximum Maximum Density Land Use Lot Floor Area Height Units Per Acre Designation Coverage Ratio (FAR) Limit (ft) Low Density R-1 As authorized by 50% N/A 30 feet 0-5 Residential Section 29.40.405 Medium Density R-ID, R-D, As authorized by 75% N/A 35 feet 14-22 or 5-12 Residential and R-M Section 29.40.405, in Very High 29.40.530, and Fire Hazard 29.40.645 Severity Zones High Density R-M As authorized by 75% N/A 45 feet 30-40 Residential Section 29.40.645 Mixed -Use CH As authorized by N/A 3.0 45 feet 30-40 Section 29.60.435 Neighborhood C-1 As authorized by N/A 1.0 35 feet 10-20 Commercial Section 29.60.225 Page 1 of 2 EXHIBIT A Central Business C-2 As authorized by N/A 2.0 45 feet 20-30 District Section 29.60.335 North Forty NF-SP As defined in As defined As defined As defined 30-40 Specific Plan Specific Plan in Specific in Specific in Specific Plan Plan Plan Office 0 As authorized by N/A 1.0 35 feet 10-20 Professional Section 29.60.100 Service LM As authorized by N/A 1.0 35 feet none Commercial Section 29.70.125 Light Industrial CM As authorized by N/A 1.0 35 feet none Section 29.70.235 Page 2 of 2