Staff Report with Exhibits 1 through 2.HEOZ Amendment
PREPARED BY: Jocelyn Shoopman and Erin Walters
Associate Planner and Associate Planner
Reviewed by: Community Development Director, Planning Manager, 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: 01/24/2024
ITEM NO: 3
DATE: January 19, 2024
TO: Planning Commission
FROM: Joel Paulson, Community Development Director
SUBJECT: Consider a Request to Further Amend Chapter 29 of the Town Code to Define
“By Right Approvals” and Amend the Housing Element Overlay Zone as
Division 5 of Article VIII, “Overlay Zones and Historic Preservation.” An
Environmental Impact Report (EIR) was Prepared and Certified for the 2040
General Plan Update on June 30, 2022. No further Environmental Analysis is
Required. Zoning Code Amendment Application Z-24-001. Project Location:
Town Wide. Applicant: Town of Los Gatos.
RECOMMENDATION:
Forward a recommendation of approval to the Town Council to further amend Chapter 29 of
the Town Code to define “By Right Approvals” and amend the Housing Element Overlay Zone
(HEOZ) as Division 5 of Article VIII, “Overlay Zones and Historic Preservation.”
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 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 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.
The Town of Los Gatos 2023-2031 Housing Element identifies amending the Town Code to
create the HEOZ as a strategy to accommodate the Town’s Regional Housing Needs Allocation
(RHNA).
PAGE 2 of 5
SUBJECT: Housing Element Overlay Zone/Z-24-001
DATE: January 19, 2024
BACKGROUND (continued):
On August 23, 2023, the Planning Commission reviewed the proposed Town Code
amendments, held a public hearing, and forwarded a recommendation of approval to the Town
Council to modify the Affordable Housing Overlay Zone (AHOZ) to be the HEOZ.
On October 3, 2023, the Town Council accepted the report of the Planning Commission’s
recommendation of approval for the proposed Town Code amendment and held a public
hearing.
On November 7, 2023, the Town Council, reviewed the proposed Town Code amendments,
held a public hearing, and introduced the ordinance to amend the Town Code.
On November 21, 2023, the Town Council adopted Ordinance No. 2347 to enact the proposed
Town Code amendments (Exhibit 1).
On December 1, 2023, the Town received the HCD findings/comment letter on the Town’s Draft
Revised Housing Element as submitted to HCD, including a cursory review of the adopted HEOZ
ordinance. The letter is available on the Town’s Housing Element webpage:
https://www.losgatosca.gov/HousingElement
DISCUSSION:
A. Zoning Amendments
The Town has received comments from HCD requiring amendments to the Town’s adopted
HEOZ ordinance to include by right approval requirements pursuant to Government Code
section 65583.2, subdivision (h) and (i), as well as the minimum density requirements of
Government Code section 65583.2, subdivision (h).
Staff, with the assistance from the Town’s outside legal counsel, Goldfarb and Lipman LLP,
and the Town’s Housing Consultant, Veronica Tam and Associates, have prepared an
amended ordinance (Exhibit 2) to address HCD’s comments.
B. Add “By Right Approval” Definition
The definition of “By Right Approval” below will be added to Section 29.10.2020,
“Definitions,” of Chapter 29, “Zoning Code Regulations,” of the Town Code:
By right approval shall have the meaning set forth in Government Code Section 65583.2
(i).
PAGE 3 of 5
SUBJECT: Housing Element Overlay Zone/Z-24-001
DATE: January 19, 2024
DISCUSSION (continued):
Government Code Section 65583.2 (i) defines “By Right Approval” as the following:
For purposes of this section and Section 65583, the phrase "use by right" shall mean that the
local government's review of the owner-occupied or multifamily residential use may not
require a conditional use permit, planned unit development permit, or other discretionary
local government review or approval that would constitute a "project" for purposes of
Division 13 (commencing with Section 21000) of the Public Resources Code. Any subdivision
of the sites shall be subject to all laws, including, but not limited to, the local government
ordinance implementing the Subdivision Map Act. A local ordinance may provide that "use
by right" does not exempt the use from design review. However, that design review shall
not constitute a "project" for purposes of Division 13 (commencing with Section 21000) of
the Public Resources Code. Use by right for all rental multifamily residential housing shall be
provided in accordance with subdivision (f) of Section 65589.5.
C. Provide Additional Specification on Residential Development in the HEOZ
Division 5 of Article VIII, “Overlay Zones and Historic Preservation,” of Chapter 29, “Zoning
Regulations,” is amended to provide clarification on what regulations apply to “by right”
and “non by right” residential development in the HEOZ.
Specification includes the following for “by right” developments:
• Residential developments on sites with underlying zoning of RM, CH, or NF-SP with at
least 20 percent of the units proposed for “low income” households and without a
subdivision are subject to “by right approval.”
• The developments must be developed at the densities specified in Table 1A below and
in no event shall any residential development projects be developed below the
minimum density of 30 units per acre.
• The developments shall be subject to non-discretionary design review based on
objective development standards in accordance with the procedures specified in Article
II, "Administration and Enforcement,” of Chapter 29, “Zoning Regulations,” of the Town
Code.
• No California Environmental Quality Act review shall be required.
• Subdivisions remain subject to all applicable state and local laws, including but not
limited to the Subdivision Map Act.
• Residential units shall occupy at least 50 percent of the floor area in all mixed-use
projects.
• For residential developments and mixed-use projects, the standards set forth in Table
1A shall apply.
PAGE 4 of 5
SUBJECT: Housing Element Overlay Zone/Z-24-001
DATE: January 19, 2024
DISCUSSION (continued):
Table 1A HEOZ Development Standards for “By Right” Residential Development
General Plan
Land Use
Designation
Zoning Minimum Yards Maximum
Lot
Coverage
Maximum
Floor Area
Ratio (FAR)
Maximum
Height
Limit (ft)
Density
Units Per
Acre
High Density
Residential
R-M As authorized by
Section 29.40.645
75% N/A 45 feet 30-40
Mixed-Use CH As authorized by
Section 29.60.435
N/A 3.0 45 feet 30-40
North Forty
Specific Plan
NF-SP As defined in
Specific Plan
As defined
in Specific
Plan
As defined
in Specific
Plan
As defined
in Specific
Plan
30-40
Specification includes the following for all other residential developments include the
standards in Table 1B:
Table 1B HEOZ Development Standards for Other Residential Development
General Plan
Land Use
Designation
Zoning Minimum Yards Maximum
Lot
Coverage
Maximum
Floor Area
Ratio (FAR)
Maximum
Height
Limit (ft)
Density
Units Per Acre
Low Density
Residential
R-1 As authorized by
Section 29.40.405
50% N/A 30 feet 0-5
Medium
Density
Residential
R-1D, R-D,
and R-M
As authorized by
Section 29.40.405,
29.40.530, and
29.40.645
75% N/A 35 feet 14-22 or 5-12
in Very High
Fire Hazard
Severity Zones
Neighborhood
Commercial
C-1 As authorized by
Section 29.60.225
N/A 1.0 35 feet 10-20
Central
Business
District
C-2 As authorized by
Section 29.60.335
N/A 2.0 45 feet 20-30
Office
Professional
O As authorized by
Section 29.60.100
N/A 1.0 35 feet 10-20
Specification includes the following for all residential developments, both “by right” and
“non by right”:
• The underlying zoning development standards will remain in effect for all other
development without a residential component.
• Regardless of the underlying zoning designation, no residential use may be developed
that does not meet the applicable HEOZ development standards.
• Where standards are not specified, the development standards provided in the
underlying zoning district shall apply.
PAGE 5 of 5
SUBJECT: Housing Element Overlay Zone/Z-24-001
DATE: January 19, 2024
DISCUSSION (continued):
D. Next Steps
The Town Council will consider the proposed HEOZ Town Code amendments at a future
date.
PUBLIC COMMENTS:
Public notification has included a legal ad in the paper. The meeting has also been publicized
on the Town’s website and through the Town’s social media platforms. As of the drafting of this
report, no comments from the public have been received.
CONCLUSION:
A. Summary
Consider a request for approval to further amend Chapter 29 of the Town Code to Define
“By Right Approvals” and amend the HEOZ as Division 5 of Article VIII, “Overlay Zones and
Historic Preservation.”
B. Recommendation
Based on the analysis above, staff recommends that the Planning Commission consider the
Town Code amendments and forward a recommendation for approval of the amendments
to the Town Council (Exhibit 2).
C. Alternatives
Alternatively, the Planning Commission can:
1. Continue the matter to a date certain with specific direction; or
2. Provide a recommendation for denial to the Town Council providing findings for denial.
EXHIBITS:
1. Adopted Ordinance 2347
2. Draft Ordinance
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