15 Attachment 9 - November 29, 2023, Planning Commission Desk Item Report with Exhibits 10-12PREPARED BY: Erin Walters and Jocelyn Shoopman
Associate Planners
Reviewed by: Planning Manager, Community Development Director, and Town Attorney
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6872
www.losgatosca.gov
TOWN OF LOS GATOS
PLANNING COMMISSION
REPORT
MEETING DATE: 11/29/2023
ITEM NO: 1
DESK ITEM
DATE: November 29, 2023
TO: Planning Commission
FROM: Joel Paulson, Community Development Director
SUBJECT: Consider and Make a Recommendation to the Town Council on the Draft
Revised 2023-2031 Housing Element. Location: Town-Wide. General Plan
Amendment Application GP-22-003.
REMARKS:
Exhibit 10 includes the Response Memorandum to HCD’s November 7, 2023, Draft Preliminary
Review Matrix, dated November 16, 2023. This document was provided to the Planning
Commission on November 16, 2023, and published online as part seven-day public review
period that was from November 16, 2023, to November 27, 2023. This document was also
included in the November 28, 2023, resubmittal of the Draft Revised 2023-2031 Housing
Element (November 2023) to the California Department of Housing and Community
Development (HCD).
Exhibit 11 includes a copy of the ABAG “Using ADUs to Satisfy RHNA” Technical Memo, dated
March 10, 2022. The income and affordability distribution of ADU’s in the Housing Element was
based on this technical memorandum. The ABAG information provided by the Los Gatos
Community Alliance was a draft version. The Town is utilizing the recommended percentages
provided in the final version of the ABAG technical memorandum.
Exhibit 12 includes public comment received between 11:01 a.m., Tuesday, November 28,
2023, and 11:00 a.m., Wednesday, November 29, 2023.
ATTACHMENT 9
PAGE 2 OF 2
SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003
DATE: November 29, 2023
EXHIBITS:
Previously received (available online at: www.losgatosca.gov/HousingElement):
1. Environmental Analysis
2. Draft Revised 2023-2031 Housing Element (November 2023)
3. Response Memorandum to the HCD Draft Preliminary Review Matrix
Previously received with the November 29, 2023, Staff Report:
4. Public Comment received between 11:01 a.m., Wednesday, November 15, 2023, and 11:00
a.m., Wednesday, November 22, 2023
Previously received with the November 28, 2023, Addendum Report:
5. Substantial Compliance with Housing Element Law (Government Code Title 7, Division 1,
Chapter 3, Article 10.6 [65580–65589.11)
6. Draft Resolution for Adoption of the Draft Revised Housing Element (November 2023)
7. Public Comments Received During the Seven-Day Review Period
8. HCD Cover Letter
9. Public Comment Received on November 21, 2023
Received with this Desk Item Report:
10. Response Memorandum to HCD’s November 7, 2023, Draft Preliminary Review Matrix,
dated November 16, 2023
11. ABAG “Using ADUs to Satisfy RHNA” Technical Memo, March 10, 2022
12. Public Comment received between 11:01 a.m., Tuesday, November 28, 2023, and 11:00
a.m., Wednesday, November 29, 2023
Town of Los Gatos Response to HCD Comment Letter: Page 1 November 16, 2023
Draft Preliminary Review Matrix on the Draft Revised
Housing Element, as submitted to HCD on October 2, 2023
Received November 7, 2023, with Staff Responses as of November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
Affirmatively Furthering Fair Housing
Regional Level Patterns and Trends: The element
includes some data and analysis regarding different
patterns for various socio-economic characteristics
(race and income). However, a complete analysis
should analyze this data for patterns and trends at
the regional level, comparing the locality to the
broader region, including integration and
segregation (race, income, disability, and familial
status), disparities in access to opportunity
(education, environmental, transportation,
economic), and disproportionate housing needs
(cost burdened, overcrowded, substandard housing
conditions, homelessness, and displacement risks).
Please see HCD's January 12, 2023 review for
additional information.
HCD Prior Review: While the element includes
several maps and tables and reports data, it
generally must evaluate the data and especially at a
regional level, comparing the Town to the broader
region. This is particularly important since the Town
appears far different from the rest of the region. The
analysis should address all components of the
assessment of fair housing (e.g., segregation and
integration, disparities in access to opportunity) and
should focus on race, income, and overall access to
opportunity). The analysis should address trends and
A35 Y~ Should be some discussion of
trends whether it’s at an
aggregate level with maps and
data tables.
Additional maps and data of the population by
protected class at a local and regional level
comparison was provided starting on page A-35
through page A-62 of the Draft Revised Housing
Element (September 2023) track change version.
Additional maps and data related to disparities
in access to opportunity at a local and regional
level comparison was provided starting on page
A-68 through A-100 of the Draft Revised Housing
Element (September 2023) track change version.
Additional data and maps related to
disproportionate housing needs at a local and
regional level comparison was provided starting
on page A-101 through A-159 of the Draft
Revised Housing Element (September 2023)
track change version.
Additional analysis in yellow highlight was
provided on pages A-35 through A-36, A-43
through A-44, A-47, A-60, A-64, A-74 through A-
75, and A-91 of the Draft Revised Housing
Element (November 2023) track change version.
EXHIBIT 10
Town of Los Gatos Response to HCD Comment Letter: Page 2 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
incorporate local data and knowledge and other
relevant factors (See below).
Income and Racial Concentration of Affluence
(RCAA): The element states that a RCAA does not
exist; however, the Town is predominantly a high
resource category according to TCAC/HCD
Opportunity Maps and is predominantly higher
income. These patterns differ from the surrounding
region and the element should include specific
analysis of the Town compared to the region and
should formulate policies and programs to promote
an inclusive community. For example, the Town
should consider additional actions (not limited to
the Regional Housing Needs Allocation (RHNA)) to
promote housing mobility and improve new housing
opportunities throughout the Town.
A63
A150
No The element now includes
actions to promote an
inclusive community;
however, the element must
provide specific analysis of
income and RCAA at a regional
level (town compared to the
broader region). The analysis
should at least address trends,
conditions, coincidence with
other fair housing factors
(e.g., race, highest resource,
overpayment), effectiveness
or absence of past strategies
(e.g., lack of publicly assisted
housing and lack of
multifamily zoning), local data
and knowledge and other
relevant factors. Please see
Los Altos Hills as examples.
Additional analysis, data, and maps describing
that all census tracts in the Town are considered
to be Racially Concentrated Areas of Affluence
(RCAA) was provided on page A-65 through A-67
and page A-151 through A-152 of the Draft
Revised Housing Element (September 2023)
track change version.
Additional analysis in yellow highlight was
provided on page A-69 of the Draft Revised
Housing Element (November 2023) track change
version.
Disparities in Access to Opportunity: While the
element was revised to include the distances
between public schools for each site to a public
transit line, it must also evaluate and compare
concentrations of protected groups with access to
transportation options. In addition, it must also
analyze any disproportionate transportation needs
for members of protected classes.
A76
A89
Yes
Identified Sites and Affirmatively Furthering Fair
Housing (AFFH): While the element was revised with
brief conclusions that identified sites do not
exacerbate fair housing conditions, it must also
A144
-163
Yes
Town of Los Gatos Response to HCD Comment Letter: Page 3 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
quantify the number of units by income group and
location then evaluate the impact on socio-
economic concentrations. Please see HCD's January
12, 2023 review for additional information.
HCD Prior: The element must include data on the
location of regional housing need allocation (RHNA)
sites by income group relative to all fair housing
components. The analysis should address the number
of units by income group and location, any isolation
of the RHNA by income group, magnitude of the
impact on existing concentrations of socio- economic
characteristics and discuss how the sites improve fair
housing conditions. The analysis should be supported
by local data and knowledge and other relevant
factors and programs should be added or modified as
appropriate to promote inclusive and equitable
communities.
Local Data, Knowledge and Other Relevant Factors:
The element included some information about
regional history, referenced stakeholder comments
and discussed the location of assisted projects and
housing choice vouchers. However, the element
needs to provide information and analysis that
relates, supports, or supplements the existing
analysis, fair housing conclusions, or contributing
factors. The element must consider other relevant
factors that have contributed to certain fair housing
conditions. This analysis must consider information
that is unique to the Town or region; such as
governmental and nongovernmental actions;
historical land use and zoning practices (e.g., past
redlining/Greenlining, restrictive covenants,
planning documents, etc.); disparities in investment
A4
A14
No~ The city can utilize staff
knowledge and reach out to
service providers for local
data.
Local knowledge and history were added on
page A-14 through A-15 of the Draft Revised
Housing Element (September 2023) track change
version.
Additional information in yellow highlight was
provided on page A-19 of the Draft Revised
Housing Element (November 2023) track change
version.
Town of Los Gatos Response to HCD Comment Letter: Page 4 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
to specific communities including transportation
investments; seeking investment or lack thereof to
promote affordability and inclusion; local initiatives,
or other information that may have impeded
housing choices and mobility.
Contributing Factors to Fair Housing Issues: The
element identifies contributing factors to fair
housing issues. However, these issues and goals do
not appear adequate to facilitate the formulation of
meaningful actions to AFFH. The element should re-
assess contributing factors upon completion of
analysis and make revisions as appropriate. In
addition, the element must prioritize these factors
to better formulate policies and programs and carry
out meaningful actions to AFFH.
A16 TBD Dependent upon complete
analysis.
Analysis of the Town’s contributing factors with
a priority rating were added on page A-16
through A-19 of the Draft Revised Housing
Element (September 2023) track change version.
Additional analysis in yellow highlight was
provided on pages A-17 through A-19 of the
Draft Revised Housing Element (November 2023)
track change version.
Housing Needs Assessment
Housing Conditions: The element discusses code
enforcement violations; however, it must also
provide a Town-wide estimate of the number of
units in need of rehabilitation and replacement.
B25 Yes
Special Housing Needs: The element was not revised
to address this finding. Please see HCD's January 12,
2023 review for additional information.
HCD Prior Review: While the element quantifies
some of the Town’s special needs populations, it
must also estimate the number of persons
experiencing homelessness in the Town. In addition,
the element reports data but must also analyze the
special housing needs. For a complete analysis of
each population group, the element should quantify
the needs, evaluate trends and characteristics (e.g.,
tenure, income) of housing needs, discuss
B40+
C57
~ Commercial Industrial (LM)
will permit ES by right;
however, program should go
beyond reviewing town code
and make amendments as
necessary to align with all
state requirements.
Analysis of the Town’s compliance with
Assembly Bill 2339 for emergency shelters was
added on page C-57 of the Draft Revised
Housing Element (September 2023) track change
version.
Program AP of the Draft Revised Housing
Element (September 2023) includes
Implementation Program AP which outlines
amendments to the Town Code to better
facilitate the provision of a variety of housing
types, prioritize special needs housing by
allowing for reduced processing times and
Town of Los Gatos Response to HCD Comment Letter: Page 5 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
disproportionate challenges faced by the
population, the existing resources to meet those
needs, assess any gaps in resources or effectiveness
of past strategies, describe the magnitude of the
remaining need and appropriate propose policies
and programs.
streamlined procedures, and include
preferential handling of special needs
populations in management plans and
regulatory agreements of funded projects.
Added language in yellow highlight was provided
on pages 10-64 and 10-65 for Implementation
Program AP of the Draft Revised Housing
Element (November 2023) track change version.
Sites Inventory, Analysis and Adequate Sites
Realistic Capacity: While the element now clarifies
that minimum densities are utilized toward the
calculation of realistic capacity; it must still address
HCD’s prior finding regarding the likelihood for 100
percent nonresidential development in zones
allowing 100 percent nonresidential uses. Please see
HCDs prior review for additional information.
HCD Prior Review: The element must include a
methodology for calculating the realistic residential
capacity of identified sites. The methodology must
be adjusted as necessary, based on the land use
controls and site improvements and typical densities
of existing or approved residential developments at
a similar affordability level in that jurisdiction. For
example, the element could clearly list other recent
projects, the zone, acreage, built density, allowable
density, level of affordability and presence of
exceptions such as a density bonus.
D2-
D5
D13
No Program BH must clarify by
right definition for reuse sites.
Program AS of the Draft Revised Housing
Element (September 2023) identifies the reuse
sites included in the 6th cycle Housing Element.
Clarifying language in yellow highlight was
provided on pages 10-68 and 10-69 for
Implementation Program AS of the Draft Revised
Housing Element (November 2023) track change
version.
Nonvacant Sites: The element was not revised to
address this finding. Please see HCD's January 12,
2023 review for additional information.
D5 Yes~ Utilizes factors: ILV, FAR, Age
(40 years), # of stories.
A nonvacant capacity analysis was provided on
page D-5 through D-13 of the Draft Revised
Housing Element (September 2023) track change
version. The characteristics of existing uses
Town of Los Gatos Response to HCD Comment Letter: Page 6 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
In addition, specific analysis and actions are
necessary if the housing element relies upon
nonvacant sites to accommodate more than 50
percent of the RHNA for lower-income households.
For your information, the housing element must
demonstrate existing uses are not an impediment to
additional residential development and will likely
discontinue in the planning period. (Gov. Code, §
65583.2, subd. (g)(2).) Absent findings (e.g.,
adoption resolution) based on substantial evidence,
the existing uses will be presumed to impede
additional residential development and will not be
utilized toward demonstrating adequate sites to
accommodate the RHNA.
HCD Prior Review: The element must include an
analysis demonstrating the potential for additional
development on nonvacant sites. The element
generally provides a description of the properties
like location and whether the property owner
submitted an interest form but does not describe
the results of the form or why the property might
redevelop in the planning period. To address this
requirement, the element should address the extent
to which existing uses may constitute an
impediment to additional residential development,
the Town’s past experience with converting existing
uses to higher density residential development, the
current market demand for the existing use, an
analysis of any existing leases or other contracts that
would perpetuate the existing use or prevent
redevelopment of the site for additional residential
development, development trends, market
conditions, and regulatory or other incentives or
(age, floor area ratio, improvement-to-land
value, single vs. multi-story), and whether such
characteristics are conducive to future
redevelopment were all included in the analysis.
Clarifying language in yellow highlight was
provided on page D-5 of the Draft Revised
Housing Element (November 2023) track change
version related to the nonvacant capacity
analysis.
Town of Los Gatos Response to HCD Comment Letter: Page 7 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
standards to encourage additional residential
development on these sites.
Small Sites: The element was not revised to address
this finding. Please see HCD's January 12, 2023
review for additional information.
HCD Prior Review: The element identifies several
sites smaller than a half-acre. Sites smaller than a
half-acre in size are deemed inadequate to
accommodate housing for lower-income housing
unless it is demonstrated that sites of equivalent
size and affordability were successfully developed
during the prior planning period or other evidence
demonstrates the suitability of the sites to
accommodate housing for lower-income
households, including programs as appropriate.
?
Elec.
SI
No No revisions made? The income distribution for sites D-3, D-4, and D-
7 were modified as part of Appendix H to place
all housing units in the above moderate-income
category since each parcel is less than half an
acre and deemed inadequate to accommodate
housing for lower-income housing.
Sites B-1, C-2, D-1, and D-5 are each composed
of multiple parcels. The parcels that are less
than half an acre in size within each site are
identified below in underlined text; however,
since they are owned by the same property
owner, they have been consolidated in the Sites
Inventory based on anticipated future
development as one, merged site.
Site B-1: APN’s 52924032, 52924001, and
52924003;
Site C-2: APN’s 42419049, 42419048, and
42419069;
Site D-1: APN’s 42407094, 42407095,
42407053, 42407009, 42407081, 42407115,
and 42407116;
Site D-2: 42406115 and 42406116; and
Site D-5: APN’s 42407054 and 42407063.
Additional language in yellow highlight was
provided on page D-13 of the Draft Revised
Housing Element (November 2023) track change
version to clarify that the aforementioned sites
are small parcels, not small sites.
SB 9 Sites: The element is projecting 96 units that
will be developed based on the passage of SB 9
(Statutes of 2021) to accommodate a portion of its
C50
No Element was revised to
include factors utilized such as
age, ILV, and lot coverage;
A Senate Bill 9 analysis, including identifying the
number of parcels in Town that qualify for a lot
split was provided on page D-66 of the Draft
Town of Los Gatos Response to HCD Comment Letter: Page 8 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
above moderate-income RHNA. To utilize
projections based on SB 9 legislation, the element
must; 1) include a site-specific inventory of sites
where SB 9 projections are being applied; 2) include
a nonvacant sites analysis demonstrating the
likelihood of redevelopment and that the existing
use will not constitute as an impediment for
additional residential use. The element should list
the four two-unit housing development applications
and the seven urban lot splits, and the two
development requests on single-family residential
zoned parcels; and Program BL should be revised to
implement significant incentives to encourage and
facilitate development. Please see HCD's January 12,
2023 review for additional information.
HCD Prior Review: The element identifies SB 9 as a
strategy to accommodate the part of the Town’s
RHNA. To support these assumptions, the analysis
must include experience, trends and market
conditions that allow lot splits. The analysis must
also include a nonvacant sites analysis
demonstrating the affordability, likelihood of
redevelopment and the existing use will not
constitute as an impediment for additional
residential use. The analysis should describe how
the Town determined eligible properties, whether
the assumed lots will have turnover, if the
properties are easy to subdivide, and the condition
of the existing structures or other relevant factors
indicating additional development potential. The
analysis should also describe interest from property
owners as well as experience. The analysis should
provide support for the assumption of eligible
properties being developed within the planning
D66 however, should relate to site
inventory specific for Sb 9
projects, including all four two
unit housing development
applications, and seven urban
lot requests. In addition, the
element must discuss trends
and likelihood of
redevelopment. For example,
the town can identify on a site
specific analysis owner
interest, existing use, and
other conditions of the
existing infrastructure or
relevant factors indicating
additional development.
Please see HCDs prior review.
See the town of Ross as
example.
Revised Housing Element (September 2023)
track change version.
The inclusion of Senate Bill 9 units in the
Housing Element towards meeting the Town’s
RHNA was removed from Table 10-3 on page 10-
33, Table D-2 on page D-2, and page D-70 of the
Draft Revised Housing Element (November
2023) track change version.
Town of Los Gatos Response to HCD Comment Letter: Page 9 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
period. Based on the outcomes of this analysis, the
element should add or modify programs to establish
zoning and development standards early in the
planning period and implement incentives to
encourage and facilitate development as well as
monitor development every two years with and
identify additional sites within six months if
assumptions are not being met. The element should
support this analysis with local information such as
local developer or owner interest to utilize zoning
and incentives established through SB 9.
Zoning for a Variety of Housing Types
(Manufactured Housing): The element was not
revised to address this finding. Please see HCD's
January 12, 2023 review for additional information.
HCD Prior Review: The element must demonstrate
zoning permits manufactured housing on a
permanent foundation in the same manner and in
the same zone as a conventional or stick-built
structures are permitted (Government Code Section
65852.3) or add or modify programs as appropriate.
C15
No
Include program to comply
with gov code 65852.3.
Narrative describing that manufactured housing
is permitted by-right on all residentially zoned
parcels was included on page C-14 of the Draft
Revised Housing Element (September 2023)
track change version.
Additional text in yellow highlight was provided
in Implementation Program AQ on page 10-67 of
the Draft Revised Housing Element (November
2023) track change version to clarify that the
Town will comply with Section 65852.3 of the
Government Code to allow the installation of
manufactured homes.
Governmental Constraints
Land Use Controls: The element now lists
development standards by zoning district. However,
it must also list and evaluate development standards
for the North Forty Specific Plan, Mixed-Use
Commercial, and the High-Density Residential zones.
Please see HCD's January 12, 2023 review for
additional information
C3
C6
D2
~ Medium and High Density
Residential would be based on
the underlying zone in the
2020 GP?
An evaluation of the North Forty Specific Plan
residential development standards was provided
on page C-6 of the Draft Revised Housing
Element (September 2023) track change version.
Development standards for residential and
commercial development were provided in
Table C-1 on page C-5 of the Draft Revised
Housing Element (September 2023) track change
version.
Town of Los Gatos Response to HCD Comment Letter: Page 10 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
HCD Prior Review: The element must identify and
analyze all relevant land use controls impacts as
potential constraints on a variety of housing types.
For example, the element should analyze all
development standards by zoning district for
impacts on housing costs and ability to achieve
maximum densities. The element should also discuss
any local initiatives, referendums, moratoriums or
other mechanisms (existing or proposed) that
impact housing supply, cost, feasibility, timing and
ability to achieve maximum densities. In addition,
the analysis should specifically address the
development standards in the North Forty Specific
Plan, Mixed Use Commercial, and the High-Density
Residential zone. The analysis must evaluate the
cumulative impacts of land use controls on the cost
and supply of housing, including the ability to
achieve maximum densities. The Town could engage
the development community to assist with this
analysis.
The development standards for the CH zone
(applicable General Plan land use category of
Mixed Use Commercial) and R-M zone
(applicable General Plan land use category of
High Density Residential) were provided in
yellow highlight on pages C-7 and C-8 of the
Draft Revised Housing Element (November
2023) track change version.
Fees and Exaction: The element now compares total
fees as a proportion of the total development costs
but still must list the fees that comprise that total
and particularly impact fees then evaluate those
total fees for impacts on development costs.
C19
C36
No Revise to include MU unit
project Table C-4, but should
also list fees for MF projects.
A table summarizing the development and
permit fees required for a single-family and
mixed-use development were provided in Table
C-4 on page C-20 of the Draft Revised Housing
Element (September 2023) track change version.
Table C-4 on page C-23 of the Draft Revised
Housing Element (November 2023) track change
version was revised to include the permitting
fees for a multi-family project in yellow
highlight.
Local Processing and Permit Procedures: While the
element provides additional information on the
processing of a typical market rate single or multi-
family housing application, it mentions approval is
C37
Yes~ All CUP approval findings
should be based on objective
The findings for a housing project which requires
a Conditional Use Permit (CUP) was provided on
Town of Los Gatos Response to HCD Comment Letter: Page 11 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
required by the Development Review Committee
(DRC) (p. C-29). The element must describe and
analyze the DRC process, identify and evaluate
approval findings for impacts on housing cost and
approval certainty.
C44 design standards to promote
certainty.
page C-48 of the Draft Revised Housing Element
(September 2023) track change version.
Implementation Program AP on page 10-67 of
the Draft Revised Housing Element (November
2023) track change version includes in yellow
highlight clarifying text to amend the
Conditional Use Permit findings for a multi-
family and mixed-use project to make them
objective and provide certainty in outcomes.
Housing for Persons with Disabilities: The prior
review found the Town’s reasonable
accommodation procedure contains constraints. For
example, subjective language in approval findings
such as “no impact on surrounding uses” can lead to
uncertainty of project approval through a
discretionary process. In response, the Town
commits Program BC to revise subjective language
criteria to “minimal impact on surround uses” (p. C-
38). However, reasonable accommodation is a
unique exception process that should not contain
findings similar to a conditional use permit. Program
BC should be revised to specifically remove the
surrounding uses finding.
10-
53
C47
No Program V.
See suggested language in
blue below.
Implementation Program V on page 10-53 of the
Draft Revised Housing Element (September
2023) track change version includes language to
review the Reasonable Accommodation
procedure on an annual basis.
Suggested language for Implementation
Program V was added in yellow highlight on
page 10-53 of the Draft Revised Housing
Element (November 2023) track change version.
Inclusionary Zoning Ordinance: While the element
now discusses alternatives for meeting the Town’s
inclusionary requirements, it should still describe
incentives, including relationships with state density
bonus law and how the level of affordability is
determined.
C53 Yes
Housing Programs: Beneficial Impact
Programs must demonstrate that they will have a
beneficial impact within the planning period.
Beneficial impact means specific commitment to
10-
45
No Metrics should not be limited
to RHNA.
Implementation Program K on page 10-45 of the
Draft Revised Housing Element (September
2023) track change version describes outreach
Town of Los Gatos Response to HCD Comment Letter: Page 12 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
deliverables, measurable metrics or objectives,
definitive deadlines, dates, or benchmarks for
implementation. Deliverables should occur early in
the planning period to ensure actual housing
outcomes. The following programs still must be
revised to include specific commitments and
definitive timelines as follows:
Program M (Lot Consolidation): While the program
was revised to facilitate four units through the lot
consolidation process, it should increase the
numerical objective in stride with the need. Specially
as the Town is relying on several small sites to
accommodate a portion of lower income RHNA.
by the Town to property owners to facilitate lot
consolidation, including an amendment to the
Town Code for development incentives to
encourage the parcel merger process in a
streamlined and timely manner.
Metrics to Implementation Programs were
modified in yellow highlight on pages 10-42
through 10-43, 10-45 through 10-48, 10-50
through 10-53, 10-55, 10-59, and 10-61 of the
Draft Revised Housing Element (November
2023) track change version.
Program S (Affordable Housing Development): The
program should increase the numerical objective to
target meaningful outcomes during the planning
period.
10-
48
No Program O must be revised to
include a timeline when
development impact fees will
be reduced.
Implementation Program O on page 10-48 of the
Draft Revised Housing Element (September
2023) track change version describes incentives
for affordable housing development.
The timeline of Implementation Program O was
modified in yellow highlight on page 10-48 of
the Draft Revised Housing Element (November
2023) track change version.
Program T (Purchase Affordability Covenants in
Existing Apartments): The element should revise the
timeline earlier in the planning period to target a
beneficial impact (e.g., by 2026).
10-
49
Yes Program P. Implementation Program T on page 10-49 of the
Draft Revised Housing Element (September
2023) track change version describes a program
for the Town to purchase affordability
covenants.
The timeline of Implementation Program P was
modified in yellow highlight on page 10-49 of
the Draft Revised Housing Element (November
2023) track change version.
Town of Los Gatos Response to HCD Comment Letter: Page 13 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
Program BM (Story Poles and Netting Policy): The
program now commits to review the story pole and
netting policy and explore options to reduce costs
affordable housing. However, the program still must
commit to an actual outcome, beyond exploring
options. In addition, the program should also
establish alternatives or modifications that promote
approval certainty. For example, the program could
remove the requirements or create alternative for
meeting the requirement such as visual renderings.
10-
69
C36
No Program AW must be revised
to include specific
commitment to amend story
poles and netting policy. In
addition, the City should
consider public comments
submitted by developer.
Implementation Program AW on page 10-69 of
the Draft Revised Housing Element (September
2023) track change version describes that the
Story Pole and Netting Policy will be reviewed to
reduce the associated costs of installing story
poles.
Implementation Program AW on page 10-72 and
page C-38 of the Draft Revised Housing Element
(November 2023) track change version was
modified in yellow highlight to include relevant
information regarding the status of this progress
by the Planning Commission and Town Council.
Housing Programs: Sites
As noted in Finding A3, the element does not include
a complete site analysis; therefore, the adequacy of
sites and zoning were not established. Based on the
results of a complete sites inventory and analysis,
the Town may need to add or revise programs to
address a shortfall of sites or zoning available to
encourage a variety of housing types.
As noted in the prior review, if necessary to make
appropriate zoning available to accommodate the
lower-income RHNA, Program D (Additional Housing
Capacity) must be revised to meet all requirements
pursuant to Government Code section 65583.2,
subdivisions (h) and (i). For example, the Program
must commit to permit owner-occupied and rental
multifamily uses by-right (without discretionary
action) for developments in which 20 percent or
more of the units are affordable to lower-income
households.
10-
42
No Program D+.
Program AR must comply with
prior identified sites pursuant
to gov code 65583.2 c) to
make prior identified sites
available, if necessary.
Program AS of the Draft Revised Housing
Element (September 2023) identifies the reuse
sites included in the 6th cycle Housing Element.
Implementation Program AS on pages 10-68 and
10-69 of the Draft Revised Housing Element
(November 2023) track change version was
modified in yellow highlight to include the
definition of by right development, consistent
with Program D.
Town of Los Gatos Response to HCD Comment Letter: Page 14 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
Housing Program: Constraints
As noted in Finding A4, the element requires a
complete analysis of potential governmental
constraints. Depending upon the results of that
analysis, the Town may need to revise or add
programs and address and remove or mitigate any
identified constraints.
TBD Depends on a complete
analysis.
Governmental constraints are identified and
analyzed in Appendix C, starting on page C-1 and
additional information regarding permitting fees
was added in yellow highlight to Table C-4 on
page C-23 of the Draft Revised Housing Element
(November 2023).
Housing Program: AFFH
As noted in Finding A1, the element requires a
complete AFFH analysis. Depending upon the results
of that analysis, the Town may need to revise or add
programs. Actions listed to address AFFH analysis
must have specific commitments, milestones,
geographic targeting and metrics or numerical
targets and, as appropriate; address housing
mobility enhancement; new housing choices and
affordability in higher opportunity or higher income
areas; place-based strategies for community
revitalization and displacement protection. For
example, the element must add significant and
meaningful housing mobility actions to overcome
the existing patterns in the Town related to the
broader region. Given, among other things, the
Town is entirely in the highest category of disparities
in access to opportunity and largely does not reflect
the socio-economic characteristics of the broader
region. The element must include significant actions
to promote housing mobility within the Town and
relate to the region to promote an overall inclusive
community. The element could consider improving
existing programs or including new programs.
No Following a complete analysis,
the town must revise to
include robust suit of actions
that provide stronger housing
mobility programs beyond
RHNA.
An Affirmatively Furthering Fair Housing (AFFH)
report and analysis of the Town and at a
regional level is provided in Appendix A, starting
on page A-1 of the Draft Revised Housing
Element (September 2023).
An action matrix with the Town’s goals and
actions to affirmatively further fair housing was
added in yellow highlight on page 10-73 of the
Draft Revised Housing Element (November
2023).
Town of Los Gatos Response to HCD Comment Letter: Page 15 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
Housing Program: ADU
Program U Accessory Dwelling Units (ADU): While
the program now commits to annually monitor the
production and affordability of ADUs and make
adjustments. It should clarify the types of
adjustments that will be considered such as
rezoning, additional incentives, fee reductions,
financing programs.
10-
50
No Program Q. The city must
include a definitive timeline of
when alternative actions will
be taken. See suggested
language in blue.
Implementation Program Q on page 10-49 of the
Draft Revised Housing Element (September
2023) track change version describes multiple
Town efforts to encourage the creation of
Accessory Dwelling Units (ADU).
Suggested language for Implementation
Program Q was added in yellow highlight on
page 10-50 of the Draft Revised Housing
Element (November 2023).
Other Revisions
Quantified Objectives: The element now includes
quantified objectives for new construction and
rehabilitation by income group but should also
include conservation objectives. Please note,
conservation objectives are not limited to at-risk
preservation and may include a variety of activities
that promote safe and stable housing such as code
enforcement and tenant protections. Examples of
programs that may be utilized include Programs T
(Purchase Affordability Covenants in Existing
Apartments), AE (Rental Dispute Resolution), AF
(Rental Assistance), AH (Stabilize Rents) and AQ
(Rental Housing Conservation).
10-
34
Yes Revised objectives.
Public Participation: While the element was revised
to include the renters survey results and previous
outreach conducted, it must also summarize all
public comments and describe how they were
considered and incorporated into the element.
HCD’s future review will consider the extent to
which the revised element documents how the
Town solicited, considered, and addressed public
10-
10
App I
and
App
G
~/No How were comments
submitted by Erick Phillips
7/31/23 addressed?
Appendix I was added to the Draft Revised
Housing Element (September 2023) including all
verbal and written public comments that have
been provided to the Town.
Appendix I of the Draft Revised Housing Element
(November 2023) was modified in yellow
Town of Los Gatos Response to HCD Comment Letter: Page 16 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
comments in the element. The Towns consideration
of public comments must not be limited by HCD’s
findings in this review letter. Please see HCD’s prior
review for additional information.
highlight to include a response to the public
comment submitted by Eric Phillips.
General Plan: While the element identifies Program
BG (General Plan Amendment) to ensure
consistency with the General Plan, it should discuss
how consistency will be maintained throughout the
entire planning period.
10-
67
Yes Program AQ.
Other (HCD use only)
Public comments App
A
? 5 public comments submitted:
Anne Paulson, Phil Koen (2),
Maryknol, Eric Phillips.
Appendix I was added to the Draft Revised
Housing Element (September 2023) including all
verbal and written public comments that have
been provided to the Town.
Appendix I of the Draft Revised Housing Element
(November 2023) was modified in yellow
highlight to respond to the referenced public
comments.
Pipeline Projects D 68 ? Table D-7 pipeline projects
included in previous years
APRs? Need confirmation of
DOF.
On page D-68 of the Draft Revised Housing
Element (September 2023) track change version,
table D-7 was added to include housing units
that were entitled, permitted, under
construction, and finaled from June 30, 2022, to
January 31, 2023.
The number of units that were entitled,
permitted, under construction, and finaled from
June 30, 2022, to January 31, 2023, as listed in
Table 10-3 on page 10-33, Table D-2 on page D-
2, and Table D-7 on page D-72 of the Draft
Revised Housing Element (November 2023)
were modified in yellow highlight to remove
Town of Los Gatos Response to HCD Comment Letter: Page 17 November 16, 2023
Prior HCD Finding Page
#
Preliminary
Review HCD Notes Staff Response
units that were reported to the California
Department of Finance.
Document availability Yes
Rezone timing FYI
Resolution Received? NA
50% nonvacant resolution FYI
Electronic sites inventory FYI
AB 2339 C57
Overlay No HE Overlay Program AQ. The rezonings and creation of the Housing
Element Overlay Zone (HEOZ) have been
recommended by Planning Commission and
introduced by Town Council.
Modification Authority NA
Suggested Program Language (in Blue)
Program Q: Annually monitor number of ADU’s/ JADUs produced, and affordability levels and make adjustments to accommodate a potential shortfall if
determined necessary (i.e. adopt additional incentives or other strategies such as rezoning)
Timing: Timeframe: Annually monitor the production and affordability and if necessary, make potential adjustments within six months.
Program V: Reasonable Accommodation procedure. Review and revise the Reasonable Accommodation procedure to promote access to housing for persons
with disabilities, address potential constraints including subjective approval findings such as “impact on surrounding uses.”
Timing: Review and Revise RA by December 2024. Annually review and, if necessary, revise the reasonable accommodations procedures.
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6/14/2022 1
Using ADUs to Satisfy RHNA
Technical Memo
Background
Jurisdictions are allowed to use ADUs to help satisfy their RHNA requirements; however, the process is
somewhat different than other aspects of the sites inventory. The standard method is to estimate the
number of ADUs that will be developed in the planning period, then distribute those estimated units into
each of the income categories.
Estimating Production
The estimate should be based on the average number of ADU building permits issued each year, multiplied
by eight (because there are eight years in a housing element cycle). Most cities base their determination of
annual ADU permits by averaging the building permits approved each year since 2018, when state law
made it easier to construct the units. This is generally considered a safe harbor.
There is a small amount of flexibility in the calculations. If numbers were low in 2018 (or 2019) but were
high in 2020, 2021, and 2022, a jurisdiction could potentially use 2019-2021 or 2020-2022 as the baseline.
Because this is outside the safe harbor, these calculations would need to be bolstered by a logical
explanation for the methodology, e.g., the jurisdiction further loosened regulations in 2019.
Projecting a higher number of ADUs than what has been demonstrated through permit approvals in recent
years may be possible, but more challenging. A slightly larger number may be warranted if a robust,
funded, and clear plan to increase production has been put in place. However, you are strongly
encouraged to coordinate with HCD before deviating from the standard methodology.
ADU sites are not listed in the site inventory, rather they are summarized and tallied in their own
subsection.
EXHIBIT 11
6/14/2022 2
Determining the Income Distribution
ABAG conducted an analysis of ADU affordability and concluded that in most jurisdictions, the following
assumptions are generally applicable. Many jurisdictions are choosing to use these numbers in lieu of
conducting their own affordability analysis.
Table 1. Percent of ADUs Affordable to Different Income Categories
Percent Income Category
30% Very low income
30% Low income
30% Moderate income
10% Above moderate
Please contact your County Collaborative Technical Assistance Provider for more information on
affordability. A few key points are summarized below:
• Use building permits issued for the estimate.
• Jurisdictions do not need to list the addresses for potential ADUs.
• Make sure the assumptions in your Housing Element match the numbers reported in past year APRs.
Please visit the ABAG Housing Technical Assistance page for more information, including a webinar that
covers this topic.
Sample Housing Element Write Up
The following is what a jurisdiction might include in their sites inventory section of the housing element.
Since City amended its ordinance in 2019, the number of ADUs permitted has significantly increased. City’s
ordinance goes beyond state law and allows 1,200 square foot ADUs. Additionally, the City website has an
entire section devoted to ADUs with clear information about the standards and approval process. On
average, the building department provides comments to completed ADU applications in 10 days. 2018 is
not used as a base year because the old ADU standards were very restrictive and the City did not have
much information on its website. Production has been consistently higher since the new ordinance went
into effect.
Since 2019, the City has issued an average of 12.75 ADU permits per year, as listed below.
Year Building Permits
2017 2
2018 1
2019 10
2020 15
2021 10
2022 16 (estimate based
on first 6 months)
6/14/2022 3
Based on the annual average of 12.75 ADU permits per year since 2019, the City is projecting 102 ADUs being
permitted over the eight year planning period and is using ABAG’s survey data to distribute the projected units
by income category:
Income Category Percentages Totals
Very low 30% 30
Low 30% 31
Moderate 30% 31
Above moderate 10% 10
Based on these calculations, the City is able to meet approximately 1/7 of its RHNA through ADUs, and
must accommodate another 598 units on the sites detailed in the sites inventory. See table below for a
summary:
V Low Low Mod Above Mod Total
RHNA 200 200 100 200 700
Pipeline / Approved Units 0 0 0 0 0
ADUs 30 31 31 10 102
Remaining RHNA 170 169 69 190 598
ADUs and Level of Scrutiny of Other Sites in Housing Elements
Cities that are heavily dependent on redevelopment sites (or technically nonvacant sites) face more
scrutiny in their lower income sites inventory. ADUs can help some cities avoid this additional
scrutiny/analysis. To simplify: if greater than 50 percent of the lower income RHNA can be satisfied by
vacant sites, under construction (pipeline) projects, and projected ADUs, cities can avoid the higher
standard.
For example: If the lower income RHNA is 100 and there are ten units under construction and sites for ten
vacant units, a jurisdiction can avoid the heightened scrutiny if ADU projections are at least 31 units for the
housing element period. (Half of 100 is 50. 10 under construction plus 10 vacant plus 31 ADUs is 51, or
greater than 50.)
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From: <>
Sent: Tuesday, November 28, 2023 6:30 PM
To: Laurel Prevetti <LPrevetti@losgatosca.gov>; Joel Paulson <jpaulson@losgatosca.gov>
Subject: Fwd: Public Comment - Agenda Item #1 - Planning Commission meeting Nov 29
This was also sent to the Council and Wendy Wood to forward to the PC.
11-28-23
Dear Members of the Planning Commission,
The Los Gatos Community Alliance (LCGA) is a group of residents writing to you regarding the revised
draft 2023-2031 Housing Element submitted to HCD on November 16, 2023 (November draft HE) which
the Planning Commission is to “consider and make a recommendation to the Town Council on” at your
upcoming November 29th meeting.
By now the Planning Commission should be fully aware the Town failed to comply with AB 215 and filed
the November draft HE prior to completing the mandatory 7-day public comment period. We have
attached HCD’s May 30th comment letter and specifically draw your attention to Comment D as well as
the general discussion regarding AB 215 requirements in HCD’s cover letter. We have also attached two
emails from Ms. Whelan dated November 20 and 21 which provide additional background and confirm
the Town’s failure to comply with Govt Code Section 65585(b)(1).
We further point out that the accompanying staff memo for agenda item #1 dated November 22, 2023,
provides a chronology of events beginning with November 7th, but fails to disclose that the November
draft HE, which is the draft the Commission will be considering on November 29th, was submitted to
HCD on November 16, 2023.
This is particularly troublesome because the Planning Commission held a special meeting on November
15, the purpose of which was to, “consider and make a recommendation to the Town Council on the
draft of the Revised 2023 -2031 Housing Element.” For the sake of clarity, the Housing Element being
considered at the November 15th meeting was the “September 2023 draft,” which had already been
submitted to HCD on October 2, 2023, after the mandatory 7-day public comment period. We also point
out that the public comment period for that draft closed just one business day earlier, on September
29th This gave no time for the Town to reasonably consider and address the public comments it received.
The agenda for the November 15th meeting included a Staff report dated November 10, 2023 which
stated “the primary purpose of this agenda item is to ask questions of staff and the Town’s Housing
Element consultant on the Revised Draft Housing Element (September 2023), discuss potential
modifications to the document based on the preliminary feedback provided by the Town’s HCD reviewer,
receive public comment and continue the item to a date certain.” The agenda also included a link to the
Town’s website where the public could review the “September 2023 draft,” of the revised Housing
Element.
Additionally, the Staff provided an addendum report dated November 14th which included a “draft
preliminary review matrix on the draft revised Housing Element, as submitted to HCD on October 2,
2023, received November 7, 2023, with Staff responses as of November 14, 2023”. This was the first time
the Planning Commission or the public had seen this document.
EXHIBIT 12
At the November 15th special PC meeting, Staff never fully disclosed to the Planning Commission or the
public the Staff’s true intention, which was to submit a completely revised draft Housing Element the
very next day. While the HE consultant, Veronica Tam, indicated in her public comments that Staff
planned to, “resubmit revisions by the end of the week,” the extent of the revisions were not disclosed.
The additional changes were described as, “pretty technical in nature.” The consultant explained the
changes were being made based on her belief that “HCD would incorporate the majority of the
revisions” which would “dismiss their concerns” (presumably reported on the matrix) and favorably
impact HCD’s comment letter on the October 2 submission which was to be received by December 1.
However, it raises the very uncomfortable question as to why Staff did not have the Planning
Commission review the proposed revisions the night of November 15th since a new draft clearly existed
and in fact was submitted the very next day? The stunning problem that the consultant and Staff created
was by resubmitting a new draft on November 16, the Town knowingly denied the public the right to
comment BEFORE any revision was submitted to HCD as required by AB 215 and emphasized in HCD’s
May 30 comment letter.
On November 16th, the Staff posted a link to the newly revised November 2023 draft HE on its website
and emailed links to individuals and organizations that had previously requested notifications. The LGCA
received such email notification in the afternoon of November 16th. The revised November draft
contained massive changes (https://www.losgatosca.gov/DocumentCenter/View/36911/Draft-Revised-
2023-2031-Housing-Element-November-2023---Track-Changes-Copy )and were not limited to “technical
revisions”.
Furthermore, the email notification also failed to disclose the Town had already submitted the
November 2023 draft HE to HCD. Rather the email, in a very purposeful manner, stated that the 7-day
public review period for the November 2023 draft had commenced and “will run until 4pm on November
27, 2023”, creating the false impression that after 7-day comment period had closed, the November
2023 draft would then be submitted to HCD. That is certainly what would be expected if the Town were
to comply with AB 215.
It is against this backdrop of facts that we make the following comments for your review and
consideration.
1. The Planning Commission should not take any action at the November 29th meeting regarding
the November draft HE. This meeting is not a continuation of the November 15th meeting, since
an entirely new Housing Element (November draft 2023) is now under consideration (e.g., “the
item”) and was never considered at the prior meeting.
2. To fully comply with AB 215 the Staff must “consider and address” all public comments
received before the Planning Commission can take up the November draft. The agenda package
does not include any public comments let alone any discussion from Staff as to how Staff has
considered and addressed these comments.
3. It would be irresponsible and a violation of the Planning Commissioners’ fiduciary duty of care to
make any recommendation to the Town Council prior to receiving and properly deliberating
HCD’s comment letter on the October 2, 2023 HE revision. This letter is due no later than
December 1, 2023 – just 2 days after your scheduled meeting. This would be repeating the same
mistake the Planning Commission made when it made its recommendation to the Town Council
on January 11, 2023, before considering HCD’s comment letter received the very next day on
January 12, 2023. In our opinion, taking any action which “front runs” HCD’s December 1
comment letter borders on an abuse of power and could create potential legal issues for the
Town.
4. The Planning Commission needs to clarify with Staff the status of the November draft HE. Since
this revised draft was submitted to HCD mid-cycle, it is our understanding that this will start a
new 60-day review period, like the mid-cycle submission made on March 31, 2023 which was
also considered as a separate submission. If this is correct, HCD’s comment letter would be
received around January 29, 2024.
In summary, the LGCA is as eager as any group for the Town to obtain HCD certification. But laws matter.
The Town needs to fully comply with Housing Element Laws, just as every other ABAG member has done.
We appreciate the work the Planning Commission has done in moving the Town closer to certification.
Jak Van Nada, on behalf of
Los Gatos Community Alliance
Hello, Mr. Van Hoesen.
1. I want to make sure we are talking about the same thing. The Town gave
proposed revisions to its HCD reviewer for his consideration in response to
mid-review cycle comments he provided regarding the Town’s 10/2 submittal.
This was not the Town’s submittal of a revised draft Housing Element. The
proposed revisions were submitted to HCD to get HCD’s feedback on whether
HCD would be prepared to certify a revised draft Housing Element if it were
adopted with those edits and then submitted to HCD for certification. Public
comments will still be provided to HCD and taken at both the upcoming
Planning Commission and Town Council meetings. The Planning Commission
meeting is scheduled for 11/29 and the Town Council meeting has not yet
been scheduled. Only after the Town Council has received a recommendation
from the Planning Commission and held its public hearing will a revised draft
Housing Element be adopted and submitted to HCD for certification.
2. Originally, HCD stated that they would not be able to provide the Town with
mid-review cycle comments on the 10/2 submission. On October 31st
(correction: not November 7th as indicated in my original email below), the
Town’s HCD reviewer told the Town that he would be able to meet with Town
staff to provide mid-review cycle comments and scheduled a meeting for 11/7
(correction: not 11/14 indicated in my original email below). The 11/15
Planning Commission was noticed before the Town knew that HCD would in
fact be able to meet with the Town to provide mid-review cycle comments. As
a result, the 11/15 Planning Commission meeting was used to discuss the mid-
review cycle comments from HCD and the Planning Commission continued its
meeting to 11/29. Staff had not drafted the revisions at the time of the 11/15
Planning Commission meeting so the matrix that was provided stated that the
revisions were in progress. The proposed revisions were completed and
posted on 11/16 (correction: not 11/17 as indicated in my original email
below).
3. The purpose of the proposed schedule is intended to obtain HCD certification
of an amended Housing Element as soon as possible. State law requires that
the Planning Commission make a recommendation to the Town Council on
adoption. November 29th is the last date on which the Planning Commission
can make a recommendation and staff can notice a Town Council meeting in
2023. If the Planning Commission makes its recommendation after December
1st, the Town Council will vote on the Housing Element mid-January. With the
proposed schedule, the Town Council will have the benefit of HCD’s 12/1 letter
prior to adoption.
Please let me know if you have other questions or would like to meet. Thank you.
CONFIDENTIAL/ATTORNEY-CLIENT PRIVILEGED
Gabrielle Whelan ● Town Attorney
Town Attorney’s Office ● 110 E Main Street, Los Gatos, CA 95030
Desk: 408.354.6818 ● gwhelan@losgatosca.gov
www.losgatosca.gov ● https://www.facebook.com/losgatosca
From: Rick Van Hoesen <>
Sent: Monday, November 20, 2023 4:38 PM
To: Gabrielle Whelan <GWhelan@losgatosca.gov>
Cc: ; Laurel Prevetti <LPrevetti@losgatosca.gov>; Joel Paulson
<jpaulson@losgatosca.gov>; Wendy Wood <WWood@losgatosca.gov>;
jose.jauregui@hcd.ca.gov; paul.mcdougall@hcd.ca.gov; Phil Koen
<com>; Maria Ristow <MRistow@losgatosca.gov>; Mary Badame
<MBadame@losgatosca.gov>; Matthew Hudes <MHudes@losgatosca.gov>; Rob Moore
<RMoore@losgatosca.gov>; Rob Rennie <RRennie@losgatosca.gov>
Subject: Re: Town of Los Gatos Housing Element
[EXTERNAL SENDER]
Hello Ms. Whelan,
Thank you for your reply.
Yes, the Los Gatos Community Association (LGCA) does have several questions (more
may follow).
1. As we know, an important purpose of the public comment period is to provide the
public with advance notice of the proposed draft housing element and to give the
public the ability to provide comments on the proposed filing. Equally importantly,
the public comment process gives the Town the opportunity to consider and, when
appropriate, to incorporate those comments into its Housing Element before the HE is
filed with HCD. As a community organization planning to make comments on the draft
Housing Element, LGCA is greatly concerned that there is no process for such
comments to be considered by the Town and incorporated into the draft. It creates the
impression that the public comment process is for appearances only, and is simply
being given lip service by the Town in an attempt to technically satisfy the public
comment period without actually considering or incorporating any resulting comments.
Therefore would you please describe how the process you have outlined (changing
the date of submittal for the already-submitted revised Housing Element draft to
November 27) provides the ability for Town to receive and consider public comments
and then, when appropriate, incorporate any changes resulting from those comments
into the draft submittal?
2. While we did not actually ask the second question you posit (namely, why were the
most recent HE revisions not taken to the HEAB), we nonetheless wonder how the
sequence of events occurred on November 15 and 16. The Planning Commission met
on November 15 with the agenda item, "Consider and Make a Recommendation to
the Town Council on the Draft Revised 2023-2031 Housing Element." During that
meeting it appears that there was discussion of the, "mid-review cycle
recommendations from HCD that were received on November 14th." And yet to all
outward appearances the Planning Commission was not aware of (and in any event
did not publicly discuss) the draft Housing Element that the Town staff was to submit
the very next day - at least in part in response to those same "mid-review
cycle recommendations." Why was the Planning Commission (and the public) not
made aware at that meeting that the very next day a draft Housing Element was to be
filed by Town Staff in response to the HCD mid-cycle recommendations that were
discussed at that meeting?
3. Of course it is known by the Town that HCD is to provide its comment letter on the
September draft Housing Element on or before December 1. Knowing that, why would
the Town propose to submit yet another draft HE on November 27, just 4 days before
the latest date it is to receive HCD's comments? Further, why would the Planning
Commission propose to make a recommendation to the Town Council on November
29, just 2 days before that date? Why not wait to receive HCD's letter on or before
December 1 and make all the recommendations and submittals with full knowledge of
HCD's latest comments?
Thank you.
Rick Van Hoesen & Jak Van Nada
On Mon, Nov 20, 2023 at 3:13 PM Gabrielle Whelan <GWhelan@losgatosca.gov> wrote:
Dear Mr. Van Hoesen and Mr. Van Nada:
Thank you for your November 19th letter regarding the revised draft Housing
Element. I have reviewed Government Code Section 65585(b) and it does provide
that a seven-day public review period is required before a draft revision to the
Housing Element is sent to HCD. Accordingly, Town staff will be contacting HCD to
ask HCD to consider the date of submittal to be November 27th rather than
November 17th. This will provide the public with an opportunity to provide written
comment for a seven-day period plus a buffer for the Thanksgiving holiday. Town
staff will also update the Town’s Housing Element web page with this information.
As you may know, the draft revised Housing Element will be coming to the Planning
Commission for consideration on November 29th. At that meeting, staff will be
asking the Planning Commission to make a recommendation regarding adoption of
the revised draft Housing Element.
You also asked why the most recent revisions made in response to HCD’s mid-
review cycle comments were not taken to the Housing Element Advisory Board
(“HEAB”) for a recommendation to the Planning Commission. The HEAB did
review previous drafts of the Housing Element. Most recently, the HEAB made a
recommendation to the Planning Commission and Town Council before the Town’s
October 2nd submittal to HCD. The November proposed revisions were made in
response to mid-review cycle recommendations from HCD that were received on
November 14th. Given the interest in adopting, and obtaining certification of, the
revised draft Housing Element in a timely manner, it is not practical to return to the
HEAB every time revisions are proposed.
Please let me know if you have any follow-up questions.
Town Attorney’s Office ● 110 E Main Street, Los Gatos, CA 95030
Desk: 408.354.6818 ● gwhelan@losgatosca.gov
www.losgatosca.gov ● https://www.facebook.com/losgatosca
Dear Mr. Van Hoesen and Mr. Van Nada:
Thank you for your November 19th letter regarding the revised draft Housing
Element. I have reviewed Government Code Section 65585(b) and it does provide
that a seven-day public review period is required before a draft revision to the
Housing Element is sent to HCD. Accordingly, Town staff will be contacting HCD to
ask HCD to consider the date of submittal to be November 27th rather than
November 17th. This will provide the public with an opportunity to provide written
comment for a seven-day period plus a buffer for the Thanksgiving holiday. Town
staff will also update the Town’s Housing Element web page with this information.
As you may know, the draft revised Housing Element will be coming to the Planning
Commission for consideration on November 29th. At that meeting, staff will be
asking the Planning Commission to make a recommendation regarding adoption of
the revised draft Housing Element.
You also asked why the most recent revisions made in response to HCD’s mid-
review cycle comments were not taken to the Housing Element Advisory Board
(“HEAB”) for a recommendation to the Planning Commission. The HEAB did review
previous drafts of the Housing Element. Most recently, the HEAB made a
recommendation to the Planning Commission and Town Council before the Town’s
October 2nd submittal to HCD. The November proposed revisions were made in
response to mid-review cycle recommendations from HCD that were received on
November 14th. Given the interest in adopting, and obtaining certification of, the
revised draft Housing Element in a timely manner, it is not practical to return to the
HEAB every time revisions are proposed.
Please let me know if you have any follow-up questions.
Gabrielle Whelan ● Town Attorney
Town Attorney’s Office ● 110 E Main Street, Los Gatos, CA 95030
Desk: 408.354.6818 ● gwhelan@losgatosca.gov
www.losgatosca.gov ● https://www.facebook.com/losgatosca
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 2020 W. El Camino Avenue, Suite 500 Sacramento, CA 95833 (916) 263-2911 / FAX (916) 263-7453 www.hcd.ca.gov May 30, 2023
Joel Paulson, Director Community Development Department Town of Los Gatos
110 E Main Street
Los Gatos, CA 95030 Dear Joel Paulson:
RE: Town of Los Gatos’ 6th Cycle (2023-2031) Revised Draft Housing Element
Thank you for submitting the Town of Los Gatos’ revised draft housing element update received for review on March 31, 2023. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development
(HCD) is reporting the results of its review. Our review was facilitated by a conversation on May 10, 2023 with yourself, Jennifer Armer, Planning Manager, Jocelyn Shoopman and Erin Walter, associate planners. In addition, HCD considered comments from Phil Koen pursuant to Government Code section 65585, subdivision (c).
The revised draft housing element addresses many statutory requirements described in HCD’s January 12, 2023 review; however, revisions will be necessary to substantially comply with State Housing Element Law (Gov. Code, § 65580 et seq). The enclosed Appendix describes the revisions needed to comply with State Housing Element Law.
For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government fails to adopt a compliant housing element within 120 days of the statutory deadline (January 31, 2023), then any rezoning to make prior identified sites available or accommodate the regional housing needs allocation (RHNA), including for
lower-income households, shall be completed no later than one year from the statutory
deadline. Please be aware, if the Town fails to adopt a compliant housing element within one year from the statutory deadline, the element cannot be found in substantial compliance until all necessary rezones pursuant to Government Code sections 65583, subdivision (c)(1) and 65583.2, subdivision (c) are completed.
Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the Town must continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly
available while considering and incorporating comments where appropriate. Please be
Joel Paulson, Director Page 2
aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested
notices relating to the local government’s housing element at least seven days before submitting to HCD. Chapter 654, Statutes of 2022 (AB 2339), adds specificity on how cities and counties plan for emergency shelters and ensure sufficient and suitable capacity. Future
submittals of the housing element may need to address these statutory requirements. For additional information and timing requirements, please see HCD’s memo at https://www.hcd.ca.gov/sites/default/files/docs/planning-and-community/ab2339-notice.pdf.
Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent
Local Housing Allocation consider housing element compliance and/or annual reporting
requirements pursuant to Government Code section 65400. With a compliant housing element, the Town will meet housing element requirements for these and other funding sources.
For your information, some general plan element updates are triggered by housing
element adoption. HCD reminds the Town to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at: https://www.opr.ca.gov/planning/general-plan/guidelines.html.
We are committed to assisting the Town in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Jose Armando Jauregui, of our staff, at jose.jauregui@hcd.ca.gov.
Sincerely,
Paul McDougall Senior Program Manager
Enclosure
Town of Los Gatos’ 6th Cycle Revised Draft Housing Element Page 1
May 30, 2023
APPENDIX TOWN OF LOS GATOS The following changes are necessary to bring the Town’s housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code.
Housing element technical assistance information is available on HCD’s website at https://www.hcd.ca.gov/planning-and-community-development/hcd-memos. Among other resources, the housing element section contains HCD’s latest technical assistance tool,
Building Blocks for Effective Housing Elements (Building Blocks), available at
https://www.hcd.ca.gov/planning-and-community-development/housing-elements/building-blocks and includes the Government Code addressing State Housing Element Law and other resources.
A. Housing Needs, Resources, and Constraints 1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with
Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in
the jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).)
Regional Level Patterns and Trends: The element includes some data and analysis regarding different patterns for various socio-economic characteristics (race and income). However, a complete analysis should analyze this data for patterns and trends at the regional level, comparing the locality to the broader region, including integration
and segregation (race, income, disability, and familial status), disparities in access to opportunity (education, environmental, transportation, economic), and disproportionate housing needs (cost burdened, overcrowded, substandard housing conditions, homelessness, and displacement risks). Please see HCD's January 12, 2023 review for additional information.
Income and Racial Concentration of Affluence (RCAA): The element states that a RCAA does not exist; however, the Town is predominantly a high resource category according to TCAC/HCD Opportunity Maps and is predominantly higher income. These patterns
differ from the surrounding region and the element should include specific analysis of the Town compared to the region and should formulate policies and programs to promote an inclusive community. For example, the Town should consider additional actions (not limited to the Regional Housing Needs Allocation (RHNA)) to promote housing mobility and improve new housing opportunities throughout the Town.
Disparities in Access to Opportunity: While the element was revised to include the distances between public schools for each site to a public transit line, it must also evaluate and compare concentrations of protected groups with access to transportation options. In addition, it must also analyze any disproportionate transportation needs for
members of protected classes.
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Identified Sites and Affirmatively Furthering Fair Housing (AFFH): While the element
was revised with brief conclusions that identified sites do not exacerbate fair housing conditions, it must also quantify the number of units by income group and location then evaluate the impact on socio-economic concentrations. Please see HCD's January 12, 2023 review for additional information.
Local Data, Knowledge and Other Relevant Factors: The element included some information about regional history, referenced stakeholder comments and discussed the location of assisted projects and housing choice vouchers. However, the element needs to provide information and analysis that relates, supports, or supplements the existing analysis, fair housing conclusions, or contributing factors. The element must consider
other relevant factors that have contributed to certain fair housing conditions. This analysis must consider information that is unique to the Town or region; such as governmental and nongovernmental actions; historical land use and zoning practices (e.g., past redlining/Greenlining, restrictive covenants, planning documents, etc.); disparities in investment to specific communities including transportation investments;
seeking investment or lack thereof to promote affordability and inclusion; local initiatives, or other information that may have impeded housing choices and mobility. Contributing Factors to Fair Housing Issues: The element identifies contributing factors
to fair housing issues. However, these issues and goals do not appear adequate to
facilitate the formulation of meaningful actions to AFFH. The element should re-assess contributing factors upon completion of analysis and make revisions as appropriate. In addition, the element must prioritize these factors to better formulate policies and programs and carry out meaningful actions to AFFH.
2. Include an analysis and documentation of household characteristics, including level of
payment compared to ability to pay, housing characteristics, including overcrowding,
and housing stock condition. (Gov. Code, § 65583, subd. (a)(2).)
Housing Conditions: The element discusses code enforcement violations; however, it
must also provide a Town-wide estimate of the number of units in need of rehabilitation and replacement. 3. An inventory of land suitable and available for residential development, including vacant
sites and sites having realistic and demonstrated potential for redevelopment during the
planning period to meet the locality’s housing need for a designated income level, and
an analysis of the relationship of zoning and public facilities and services to these sites.
(Gov. Code, § 65583, subd. (a)(3).)
Realistic Capacity: While the element now clarifies that minimum densities are utilized toward the calculation of realistic capacity; it must still address HCD’s prior finding regarding the likelihood for 100 percent nonresidential development in zones allowing 100 percent nonresidential uses. Please see HCDs prior review for additional information.
Nonvacant Sites: The element was not revised to address this finding. Please see HCD's January 12, 2023 review for additional information.
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In addition, specific analysis and actions are necessary if the housing element relies
upon nonvacant sites to accommodate more than 50 percent of the RHNA for lower-income households. For your information, the housing element must demonstrate existing uses are not an impediment to additional residential development and will likely discontinue in the planning period. (Gov. Code, § 65583.2, subd. (g)(2).) Absent findings (e.g., adoption resolution) based on substantial evidence, the existing uses will
be presumed to impede additional residential development and will not be utilized toward demonstrating adequate sites to accommodate the RHNA. Small Sites: The element was not revised to address this finding. Please see HCD's
January 12, 2023 review for additional information.
SB 9 Sites: The element is projecting 96 units that will be developed based on the passage of SB 9 (Statutes of 2021) to accommodate a portion of its above moderate-income RHNA. To utilize projections based on SB 9 legislation, the element must; 1) include a site-specific inventory of sites where SB 9 projections are being applied; 2)
include a nonvacant sites analysis demonstrating the likelihood of redevelopment and that the existing use will not constitute as an impediment for additional residential use. The element should list the four two-unit housing development applications and the seven urban lot splits, and the two development requests on single-family residential zoned parcels; and Program BL should be revised to implement significant incentives to
encourage and facilitate development. Please see HCD's January 12, 2023 review for additional information. Zoning for a Variety of Housing Types (Manufactured Housing): The element was not
revised to address this finding. Please see HCD's January 12, 2023 review for
additional information.
Electronic Sites Inventory: For your information, pursuant to Government Code section 65583.3, the Town must submit an electronic sites inventory with its adopted housing
element. The Town must utilize standards, forms, and definitions adopted by HCD.
While the Town has submitted an electronic sites inventory, if any changes occur, the Town should submit the revised inventory to HCD as part of any future re-adoption submittal.
4. An analysis of potential and actual governmental constraints upon the maintenance,
improvement, or development of housing for all income levels, including the types of
housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as
identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of
developers, and local processing and permit procedures... (Gov. Code, § 65583, subd.
(a)(5).)
Land Use Controls: The element now lists development standards by zoning district. However, it must also list and evaluate development standards for the North Forty
Specific Plan, Mixed-Use Commercial, and the High-Density Residential zones. Please see HCD's January 12, 2023 review for additional information.
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Fees and Exaction: The element now compares total fees as a proportion of the total
development costs but still must list the fees that comprise that total and particularly impact fees then evaluate those total fees for impacts on development costs. Local Processing and Permit Procedures: While the element provides additional
information on the processing of a typical market rate single or multi-family housing
application, it mentions approval is required by the Development Review Committee (DRC) (p. C-29). The element must describe and analyze the DRC process, identify and evaluate approval findings for impacts on housing cost and approval certainty.
Housing for Persons with Disabilities: The prior review found the Town’s reasonable
accommodation procedure contains constraints. For example, subjective language in approval findings such as “no impact on surrounding uses” can lead to uncertainty of project approval through a discretionary process. In response, the Town commits Program BC to revise subjective language criteria to “minimal impact on surround uses”
(p. C-38). However, reasonable accommodation is a unique exception process that
should not contain findings similar to a conditional use permit. Program BC should be revised to specifically remove the surrounding uses finding. Inclusionary Zoning Ordinance: While the element now discusses alternatives for
meeting the Town’s inclusionary requirements, it should still describe incentives,
including relationships with state density bonus law and how the level of affordability is determined.
5. Analyze any special housing needs such as elderly; persons with disabilities, including a
developmental disability; large families; farmworkers; families with female heads of
households; and families and persons in need of emergency shelter. (Gov. Code, §
65583, subd. (a)(7).) Special Housing Needs: The element was not revised to address this finding. Please
see HCD's January 12, 2023 review for additional information.
B. Housing Programs
1. Include a program which sets forth a schedule of actions during the planning period,
each with a timeline for implementation, which may recognize that certain programs are
ongoing, such that there will be beneficial impacts of the programs within the planning
period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing Element... (Gov. Code,
§ 65583, subd. (c).) Programs must demonstrate that they will have a beneficial impact within the planning period. Beneficial impact means specific commitment to deliverables, measurable metrics or objectives, definitive deadlines, dates, or benchmarks for implementation.
Deliverables should occur early in the planning period to ensure actual housing outcomes. The following programs still must be revised to include specific commitments and definitive timelines as follows:
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• Program M (Lot Consolidation): While the program was revised to facilitate four units through the lot consolidation process, it should increase the numerical objective in stride with the need. Specially as the Town is relying on several small sites to accommodate a portion of lower income RHNA.
• Program S (Affordable Housing Development): The program should increase the numerical objective to target meaningful outcomes during the planning period.
• Program T (Purchase Affordability Covenants in Existing Apartments): The
element should revise the timeline earlier in the planning period to target a beneficial impact (e.g., by 2026).
• Program BM (Story Poles and Netting Policy): The program now commits to review the story pole and netting policy and explore options to reduce costs
affordable housing. However, the program still must commit to an actual outcome, beyond exploring options. In addition, the program should also establish alternatives or modifications that promote approval certainty. For example, the program could remove the requirements or create alternative for meeting the requirement such as visual renderings.
2. Identify actions that will be taken to make sites available during the planning period with
appropriate zoning and development standards and with services and facilities to
accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the
inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and
to comply with the requirements of Government Code section 65584.09. Sites shall be
identified as needed to facilitate and encourage the development of a variety of types of
housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room
occupancy units, emergency shelters, and transitional housing. (Gov. Code, § 65583,
subd. (c)(1).) As noted in Finding A3, the element does not include a complete site analysis;
therefore, the adequacy of sites and zoning were not established. Based on the results
of a complete sites inventory and analysis, the Town may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types.
As noted in the prior review, if necessary to make appropriate zoning available to
accommodate the lower-income RHNA, Program D (Additional Housing Capacity) must be revised to meet all requirements pursuant to Government Code section 65583.2, subdivisions (h) and (i). For example, the Program must commit to permit owner-occupied and rental multifamily uses by-right (without discretionary action) for
developments in which 20 percent or more of the units are affordable to lower-income
households. 3. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of
housing, including housing for all income levels and housing for persons with
disabilities. The program shall remove constraints to, and provide reasonable
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accommodations for housing designed for, intended for occupancy by, or with
supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).) As noted in Finding A4, the element requires a complete analysis of potential governmental constraints. Depending upon the results of that analysis, the Town may need to revise or add programs and address and remove or mitigate any identified
constraints. 4. Promote and affirmatively further fair housing opportunities and promote housing
throughout the community or communities for all persons regardless of race, religion,
sex, marital status, ancestry, national origin, color, familial status, or disability, and other
characteristics... (Gov. Code, § 65583, subd. (c)(5).) As noted in Finding A1, the element requires a complete AFFH analysis. Depending upon the results of that analysis, the Town may need to revise or add programs. Actions listed to address AFFH analysis must have specific commitments, milestones,
geographic targeting and metrics or numerical targets and, as appropriate; address housing mobility enhancement; new housing choices and affordability in higher opportunity or higher income areas; place-based strategies for community revitalization and displacement protection. For example, the element must add significant and meaningful housing mobility actions to overcome the existing patterns in the Town
related to the broader region. Given, among other things, the Town is entirely in the highest category of disparities in access to opportunity and largely does not reflect the socio-economic characteristics of the broader region. The element must include significant actions to promote housing mobility within the Town and relate to the region to promote an overall inclusive community. The element could consider improving
existing programs or including new programs.
5. Develop a plan that incentivizes and promotes the creation of accessory dwelling units
that can be offered at affordable rent... (Gov. Code, § 65583, subd. (c)(7).)
Program U Accessory Dwelling Units (ADU): While the program now commits to annually monitor the production and affordability of ADUs and make adjustments. It should clarify the types of adjustments that will be considered such as rezoning, additional incentives, fee reductions, financing programs.
C. Quantified Objectives Establish the number of housing units, by income level, that can be constructed,
rehabilitated, and conserved over a five-year time frame. (Gov. Code, § 65583, subd. (b)(1
& 2).) The element now includes quantified objectives for new construction and rehabilitation by income group but should also include conservation objectives. Please note, conservation
objectives are not limited to at-risk preservation and may include a variety of activities that promote safe and stable housing such as code enforcement and tenant protections. Examples of programs that may be utilized include Programs T (Purchase Affordability
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Covenants in Existing Apartments), AE (Rental Dispute Resolution), AF (Rental
Assistance), AH (Stabilize Rents) and AQ (Rental Housing Conservation). D. Public Participation
Local governments shall make a diligent effort to achieve public participation of all
economic segments of the community in the development of the Housing Element, and the
element shall describe this effort. (Gov. Code, § 65583, subd.(c)(9).)
While the element was revised to include the renters survey results and previous outreach
conducted, it must also summarize all public comments and describe how they were considered and incorporated into the element. HCD’s future review will consider the extent to which the revised element documents how the Town solicited, considered, and addressed public comments in the element. The Towns consideration of public comments
must not be limited by HCD’s findings in this review letter. Please see HCD’s prior review
for additional information.
E. Consistency with General Plan
The Housing Element shall describe the means by which consistency will be achieved with
other general plan elements and community goals. (Gov. Code, § 65583, subd. (c)(7).)
While the element identifies Program BG (General Plan Amendment) to ensure consistency with the General Plan, it should discuss how consistency will be maintained throughout the
entire planning period.