11 Staff Report.Apply HEOZ to 101 SSC
PREPARED BY: Jocelyn Shoopman and Erin Walters
Associate Planner and Associate Planner
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Community Development
Department Director, and Economic Vitality Manager
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 12/05/2023 ITEM NO: 11
DATE: November 30, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve a Recommendation of the Planning Commission to Introduce an
Ordinance Titled “An Ordinance of the Town Council of the Town of Los Gatos
to Apply the Housing Element Overlay Zone (HEOZ) to Provide for Increases
to the Allowable Density, Height, Floor Area Ratio, and Lot Coverage for
Residential Development on the Following Site: 101 South Santa Cruz
Avenue.” 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. Zoning Code Amendment Application Z-23-003. Applicant: Town
of Los Gatos.
RECOMMENDATION:
Approve a recommendation of the Planning Commission to introduce an ordinance titled “An
Ordinance of the Town Council of the Town of Los Gatos to Apply the Housing Element Overlay
Zone (HEOZ) to Provide for Increases to the Allowable Density, Height, Floor Area Ratio, and Lot
Coverage for Residential Development on the Following Site: 101 South Santa Cruz Avenue.”
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
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
PAGE 2 OF 6 SUBJECT: Apply HEOZ to 101 South Santa Cruz Ave/GP-23-003/Z-23-003 DATE: November 30, 2023
BACKGROUND (continued):
years, rather than every 10 to 20 years, must address statutory requirements regarding its
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 October 2, 2023, after the seven-day review period, the Town submitted the Draft Revised
Housing Element (September 2023), in response to the May 30, 2023, HCD findings/comment
letter to HCD for review. The documents submitted to HCD can be viewed on the Housing
Element update website at: www.losgatosca.gov/HousingElement.
On August 23, 2023, the Planning Commission opened the public hearing on this item, heard
public comments, and continued the item to September 13, 2023 (see Item 9 of the October 3,
2023, Town Council Agenda).
On September 13, 2023, the Planning Commission heard additional public comments, and
made a recommendation to Town Council for approval (see Item 20 of the November 7, 2023,
Town Council Agenda).
On October 3, 2023, the Town Council continued the item to November 7, 2023, pending a
potential discussion with HCD regarding the adequacy of the Town’s Sites Inventory.
On November 7, 2023, staff and the consultant met with the Town’s HCD reviewer, received
preliminary feedback, and was subsequently provided with a Draft Preliminary Review Matrix on
the Draft Revised Housing Element submitted to HCD on October 2, 2023.
On November 7, 2023, the Town Council considered and voted to introduce Ordinances to
effect zoning changes to apply the Housing Element Overlay Zone (HEOZ) on all sites included in
the Site Inventory Analysis of the 2023-2031 Housing Element with the exception of the subject
site, 101 South Santa Cruz Avenue. The Council voted to delay the rezoning of this item
to a time in which there is more certainty that it will be needed in order to certify the Housing
Element.
PAGE 3 OF 6 SUBJECT: Apply HEOZ to 101 South Santa Cruz Ave/GP-23-003/Z-23-003 DATE: November 30, 2023
BACKGROUND (continued):
On November 16, 2023, the Draft Revised Housing Element (November 2023) with
modifications in response to HCD’s Draft Preliminary Review Matrix (received by the Town on
November 7, 2023) was made available to the public for a seven-day review through November
27, 2023 at 4:00 p.m. as required by Assembly Bill 215. HCD requires that a track change copy
and a clean copy of the document be available for viewing during the seven-day review period
(available at: www.losgatosca.gov/HousingElement). In addition, an email was sent to all
individuals and organizations that previously requested notice relating to the Town’s Housing
Element Update.
On Tuesday, November 28, 2023, following the seven-day review period, the Draft Revised
Housing Element (November 2023) with modifications in response to HCD’s Draft Preliminary
Review Matrix and identification of how submitted public comments were incorporated into the
review, if appropriate, was submitted to HCD for an interim review prior to HCD’s December 1,
2023, formal review letter deadline.
DISCUSSION:
This item is introduction of an ordinance to apply the Housing Element Overlay Zone to 101
South Santa Cruz Avenue, to provide for increases to the allowable density, height, Floor Area
Ratio, and lot coverage for residential development.
A. Removal From Sites Inventory
As described in the background section of the report, on Tuesday, November 28, 2023,
following the seven-day review period, the Draft Revised Housing Element (November 2023)
with modifications in response to HCD’s Draft Preliminary Review Matrix was submitted to
HCD for an interim review prior to HCD’s December 1, 2023, formal review letter deadline.
Modifications to the Sites Inventory and Appendix D of the Draft Revised Housing Element
(November 2023) include the removal of the subject site, 101 South Santa Cruz Avenue (Site
A-2). Site A-2 had a minimum capacity of 16 units that were allocated towards fulfilling the
above moderate-income category of the Town’s RHNA. On November 7, 2023, the Town
Council considered and voted to continue the item of applying the HEOZ to the property
located at 101 South Santa Cruz Avenue (site A-2) to a time in which there was more
certainty that it will be needed in order to certify the Housing Element. In order to receive
certification of the Housing Element from HCD in an expeditious manner, staff has removed
site A-2 from the Sites Inventory, as HCD will not certify a Housing Element until all
rezonings have been completed.
PAGE 4 OF 6 SUBJECT: Apply HEOZ to 101 South Santa Cruz Ave/GP-23-003/Z-23-003 DATE: November 30, 2023
DISCUSSION (continued):
B. Application of HEOZ
The Council may consider applying the Housing Element Overlay Zone to 101 South Santa
Cruz Avenue property and adding the site back to the Sites Inventory, as it has been
removed from the Draft Revised Housing Element (November 2023) Sites Inventory.
The property is zoned C-2 and has 2020 Central Business Land Use Designation. The table
below provides a comparison of the development regulations for the 2020 General Plan and
the Housing Element Overlay Zone for the 101 South Santa Cruz Avenue site. The minimum
capacity has been highlighted.
Comparison Table of the Development Regulations for the 2020 General Plan and Housing
Element Overlay Zone (HEOZ) - 101 South Santa Cruz Avenue
2020 General Plan HEOZ
Zoning C-2 C-2/HEOZ
Density Range (du/ac) 10 – 20* (Minimum capacity –
10 units)
20 – 30 (Minimum capacity –
16 units)
Maximum Height (feet) 45 45
Lot Coverage (%) None* None**
Floor Area Ratio Up to 0.6 Up to 2.0
* The 2020 General Plan is silent on this development standard. The applicable regulation under the
Zoning Ordinance has been provided for context.
** The 2023-2031 Draft Revised Housing Element is silent on this development standard and so
development would be evaluated based on the underlying designation in the 2020 General Plan Land
Use Element.
Applying the HEOZ overlay to the site and adding it back into the Sites Inventory would
result in an additional 16 units in the above moderate-income category. The 16 units are
not required in order to meet the Town’s RHNA and/or buffer based on the Sites Inventory
and Appendix D of the Draft Revised Housing Element (November 2023), however it is the
Council’s purview to add the site and additional capacity to the Sites Inventory.
Additionally, HCD’s December 1, 2023, comment letter will provide further direction on the
Town’s Sites Inventory.
NEXT STEPS:
The Town anticipates receiving a comment letter from HCD on Friday, December 1, 2023. Once
received an Addendum or a Desk Item will be provided to the Council prior to the December 5,
2023, Town Council meeting.
PAGE 5 OF 6 SUBJECT: Apply HEOZ to 101 South Santa Cruz Ave/GP-23-003/Z-23-003 DATE: November 30, 2023
NEXT STEPS (continued):
The Town Council’s consideration of the adoption of the Draft Revised Housing Element is
tentatively scheduled for December 19, 2023. Should the Town Council adopt the Draft Revised
Housing Element with modifications, the Town must post the revision on its website and email
a link to all individuals and organizations that have previously requested notices relating to the
Town’s Housing Element for at least seven days prior to submitting the Draft Revised Housing
Element to HCD.
Based on HCD’s review, to be completed by December 1, 2023, it is possible that additional
revisions may be needed before HCD would certify the Housing Element. This means that
additional Planning Commission and Town Council hearings for adoption of a revised Housing
Element may need to be conducted.
The most recent information on the status of the ongoing Housing Element update process can
be viewed online at: www.losgatosca.gov/HousingElement.
PUBLIC COMMENTS:
Public notification has included a legal ad in the paper, noticing property owners, tenants, and
properties located within 300 feet of all the sites listed within the Town. The meeting has also
been publicized on the Town’s website and through the Town’s social media platforms. No
comments have been received as of the preparation of this staff report.
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 Zoning Code amendments. No further
Environmental Analysis is required.
CONCLUSION:
Staff recommends that the Town Council:
1. Make the finding that no further environmental analysis is required (Attachments 1);
2. Make the required finding that the proposed zone change is consistent with the General
Plan and its elements in that the proposed zone changes are consistent with the proposed
General Plan land use designations (Attachment 1); and
3. Introduce an ordinance of the Town Council of the Town of Los Gatos for Zone Change
application Z-23-003 (Attachment 1).
PAGE 6 OF 6 SUBJECT: Apply HEOZ to 101 South Santa Cruz Ave/GP-23-003/Z-23-003 DATE: November 30, 2023
ALTERNATIVES:
Alternatively, the Town Council may:
1. Continue this item to a date certain with specific direction to staff;
2. Refer this item back to the Planning Commission with specific direction; or
3. Take no action, leaving the General Plan and zoning designations unchanged.
Attachment:
1. Draft Ordinance with Exhibit A