2024-030 - Adopting the Housing ElementRESOLUTION 2024-030
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
ADOPTING A GENERAL PLAN AMENDMENT AMENDING THE HOUSING
ELEMENT OF THE GENERAL PLAN FOR THE PERIOD OF 2023-2031
IN SUBSTANTIAL COMPLIANCE WITH STATE HOUSING ELEMENT LAW.
GENERAL PLAN AMENDMENT APPLICATION: GP-24-001
PROPERTY LOCATION: TOWN WIDE
APPLICANT: TOWN OF LOS GATOS
WHEREAS, the California Legislature has found that, "California has a housing supply
and affordability crisis of historic proportions" (Gov. Code Section 65589.5); and
WHEREAS, the Legislature has further found that, "Among the consequences of those
actions are discrimination against low-income and minority households, lack of housing to
support employment growth, imbalance in jobs and housing, reduced mobility, urban sprawl,
excessive commuting, and air quality deterioration" (Gov. Code Section 65589.5); and
WHEREAS, the Legislature recently adopted the Housing Crisis Act of 2019 (SB 330)
which states that, "In 2018, California ranked 49th out of the 50 states in housing units per
capita... California needs an estimated 180,000 additional homes annually to keep up with
population growth, and the Governor has called for 3.5 million new homes to be built over
seven years"; and
WHEREAS, State Housing Element Law (Government Code Sections 65580 et seq.)
requires that the Town Council adopt a Housing Element for the eight -year period, 2023-2031,
to accommodate the Town of Los Gatos (Town) regional housing need allocation (RHNA) of
1,993 housing units, comprised of 537 very low-income units, 310 low-income units, 320
moderate -income units, and 826 above moderate -income units; and
WHEREAS, as provided in Government Code Section 65350 et. seq., adoption of the
Housing Element constitutes a General Plan amendment; and
WHEREAS, as provided in Government Code Sections 65352 — 65352.5 the Town mailed
a notice
to all California Native American tribes provided by the Native American Heritage Commission;
and
1 of 8
Resolution 2024-030 June 4, 2024
WHEREAS, no California Native American tribe requested consultation; and
WHEREAS, the Town conducted extensive community outreach beginning in the
summer of 2021 and to date, including 20 Housing Element Advisory Board (HEAB) public
meetings; a joint study session with the HEAB, Planning Commission, and Town Council; four
Planning Commission meetings; 15 Town Council meetings; two community meetings; a
community meeting hosted by the Santa Clara County Planning Collaborative; a community
meeting hosted by West Valley Community Services; and public engagement at staff hosted
information booths; and
WHEREAS, in accordance with Government Code Section 65585 (b), on August 29, 2022,
the Town posted the Draft Housing Element and requested public comment for a 30-day review
period, and on October 14, 2022, after responding to public comments, the Town submitted
the Draft Housing Element to the State Department of Housing and Community Development
(HCD) for its review; and
WHEREAS, on January 11, 2023, the Planning Commission held a duly and properly
noticed public hearing and recommended that the Town Council adopt the Draft Housing
Element, the General Plan Amendment Application, and associated Environmental Analysis; and
WHEREAS, on January 12, 2023, the Town received a letter from HCD that provided a
list of recommended revisions needed to receive from HCD a finding of substantial compliance
with State Housing Element Law; and
WHEREAS, the Draft Housing Element was changed to substantially comply with State
Housing Element Law, as described in Town Council Resolution No. 2023-006; and
WHEREAS, the matter came before the Town Council for public hearing on January 30,
2023, and was regularly noticed in conformance with State and Town law; and
WHEREAS, to comply with State Housing Element Law, the Town Council considered
HCD's findings and adopted the 2023-2031 Housing Element (the Housing Element) on January
30, 2023, in compliance with State Housing Element Law; and
WHEREAS, on January 12, 2023, April 14, 2023, May 30, 2023, and December 1, 2023,
the Town received letters from HCD stating that additional revisions would be needed to
receive from HCD a finding of conformance with Housing Element Law; and
2 of 8
Resolution 2024-030 June 4, 2024
WHEREAS, since the receipt of the comment letters, the Town has met with HCD staff
on January 27, 2023, February 9, 2023, April 21, 2023, May 10, 2023, June 21, 2023, September
5, 2023, November 7, 2023, December 13, 2023, January 18, 2024, March 1, 2024, and April 26,
2024, to discuss proposed edits intended to address HCD's requested changes and obtain
preliminary feedback on those edits; and
WHEREAS, in accordance with Government Code Section 65585 (b), on February 3,
2023, March 23, 2023, September 22, 2023, November 17, 2023, March 7, 2024, and May 9,
2024, the Town posted proposed amendments to the adopted Housing Element and requested
public comment for a seven-day review period, and on February 13, 2023, March 31, 2023,
October 2, 2023, November 28, 2023, and March 18, 2024, the Town submitted proposed
Housing Element amendments to HCD for its review; and
WHEREAS, on May 3, 2024, the Town received a letter from HCD stating that the draft
Housing Element is in substantial compliance with State Housing Element law, and will comply
with State Housing Element law when it is adopted; and
WHEREAS, on May 9, 2024, the Town published the final draft Housing Element
determined to be in substantial compliance by HCD on the Town website and requested public
comment on the final draft; and
WHEREAS, on May 22, 2024, the Planning Commission held a duly and properly noticed
public hearing to consider the draft amendments to the Housing Element, the General Plan
Amendment application, and associated Environmental Analysis; and
WHEREAS, the Planning Commission received testimony and documentary evidence
from all interested persons who wished to testify or submit documents and considered all
testimony and materials submitted, including the packet of material contained in the Planning
Commission Agenda Report for their meeting on May 22, 2024, along with any and all
subsequent reports and materials and public comments prepared concerning this matter.
WHEREAS, the Planning Commission recommended adoption of the
General Plan Amendment amending the Town's Housing Element.
WHEREAS, this matter came before the Town Council for public hearing on June 4,
2024, and was regularly noticed in conformance with State and Town law; and
3 of 8
Resolution 2024-030 June 4, 2024
WHEREAS, Town Council received testimony and documentary evidence from all
interested persons who wished to testify or submit documents. Town Council considered all
testimony and materials submitted, including the record of the Planning Commission
proceedings and the packet of material contained in the Council Agenda Report for their
meeting on June 4, 2024, along with any and all subsequent reports and materials prepared
concerning this matter.
NOW, THEREFORE, BE IT RESOLVED, THAT THE TOWN COUNCIL HEREBY FINDS THAT
BASED ON SUBSTANTIAL EVIDENCE IN THE RECORD:
1. The foregoing recitals are true and correct and are incorporated by reference into
this action.
2. An Environmental Analysis, attached as Attachment 2 to the staff report presented
at the June 4, 2024 Town Council meeting, was prepared for the adopted Housing
Element Update. Although the adopted Housing Element Update could have a
significant effect on the environment, all potentially significant effects were
analyzed adequately in the Town of Los Gatos 2040 General Plan Program
Environmental Impact Report (EIR), adopted with a statement of overriding
considerations on June 30, 2022, pursuant to applicable standards, including CEQA
Guidelines Section 15168(c)(2). The Housing Element is consistent with the growth
projections evaluated in the General Plan Program EIR and within the scope of the
General Plan Program EIR. In accordance with CEO.A Guidelines Section 15162, no
subsequent EIR is required in that:
a. The Housing Element will not result in significant environmental effects not
previously analyzed in the Program EIR for the 2040 General Plan or a
substantial increase in those previously identified significant effects, because
the density and location of potential development is within the scope of the
2040 General Plan analyzed by the Program EIR.
b. No substantial evidence has been introduced demonstrating that there are
substantial changes with respect to the circumstances under which the
4 of 8
Resolution 2024-030 June 4, 2024
Housing Element is being adopted which will involve new significant effects
or a substantial increase in previously identified significant effects.
c. No new information of substantial importance, which was not known and
could not have been known at the time the previous EIR was certified, has
placed in the record showing that:
i. The Housing Element will have one or more significant effects not
discussed in the Program EIR;
ii. Significant effects previously examined will be substantially more
severe than shown in the Program EIR;
iii. Mitigation measures previously found not to be feasible would in fact
be feasible and would substantially reduce one or more significant
effects; or
iv. Mitigation measures which are considerably different than those
analyzed in the Program EIR would substantially reduce one or more
significant effects on the environment.
3. The Town Council finds that the proposed amendments to the adopted Housing
Element were within the scope of the General Plan amendments covered by the
General Plan EIR, in that they are consistent with the growth projections evaluated
in the General Plan EIR, and no new environmental document is required, in that the
impacts of the Housing Element amendments were analyzed adequately in the Town
of Los Gatos 2040 General Plan Environmental Impact Report (EIR), as shown in the
Environmental Analysis attached to the staff report for the June 4, 2024, Town
Council meeting as Attachment 2. All feasible mitigation measures developed in the
General Plan EIR remain in effect.
4. In accordance with Government Code Sections 65585(e) and (f)(1), the Town Council
has considered HCD's comments and has found that the Town has completed
changes to the adopted Housing Element to substantially comply with Housing
Element Law, as detailed in the HCD letter dated May 3, 2024, attached to the staff
report for the June 4, 2024, Town Council meeting as Attachment 6.
5 of 8
Resolution 2024-030 June 4, 2024
5. Government Code Section 65583.2(g)(2) requires that any jurisdiction relying on
non -vacant sites to meet more than 50 percent of the RHNA for Tower -income
households must make findings based on substantial evidence that the existing use
on the non -vacant site is not an impediment to residential development during the
planning period. In Los Gatos, more than 50 percent of the remaining RHNA for
lower income units is on non -vacant sites. The Town has provided such substantial
evidence in the record (including but not limited to that contained in Appendix D to
the proposed amended Housing Element, which is incorporated by reference). Based
on this evidence, the existing uses on the non -vacant sites identified to
accommodate the Town's RHNA are likely to be discontinued during the planning
period, and therefore do not constitute an impediment to planned residential
development on the sites during this planning period. The substantial evidence
provided in Appendix D and elsewhere in the record includes, but is not limited to,
the following:
a. The Town has conducted a site -specific analysis of each site listed in the Sites
Inventory, summarized in Tables D-5 and D-6. During the outreach for the 6th
cycle Housing Element, the owners of 27 parcels expressed interest in
developing housing on the sites that they own. Those sites are included in
the Sites Inventory. Sites where owner interest was expressed, or where
conceptual development plans have been received, are adequate to
accommodate the Town's entire remaining RHNA for lower income and
moderate -income housing (see Table D-2).
b. The Town is experiencing high demand for residential planning approvals in
that there are seven SB 330 formal or preliminary applications pending on
the non -vacant sites in the Sites Inventory.
c. The Town has followed HCD guidance when performing its section
65583.2(g)(2) analysis. The site selection criteria used by the Town to identify
additional sites where existing uses are likely to be discontinued during the
planning period include improvement to land value (average 0.56); floor area
6 of 8
Resolution 2024-030 June 4, 2024
ratio Tess than 50 percent of that allowed (average 0.15); buildings over 40
years old; and existing structures Tess than the permitted height (primarily
one-story buildings), characteristics which are associated with sites where
owner interest has been expressed or applications have been received. Only
sites meeting three of these four criteria are included in the Sites Inventory.
d. The Town has adopted the Housing Element Overlay Zone, which provides
for increased density, a minimum density of 20 units per acre, increased
height, and other modified development standards to provide incentives for
residential development on properties in the Sites Inventory.
e. In finding that existing uses for the designated non -vacant sites are likely to
be discontinued during the planning period, and that such existing uses do
not constitute an impediment to residential development, the Town has
relied upon facts, assumptions that are derived from those facts, and expert
opinion. The Town bases its findings on documented evidence that the
redevelopment of commercial sites for housing is a growing regional and
local trend that is clearly reflected in Los Gatos and other nearby cities in the
region. Further, strong housing demand and high land values for residential
development, together with weakening demand for commercial uses, have
made conversion to residential use within the planning period likely for
multiple sites that currently have commercial uses.
f. The Town further bases its findings upon substantial evidence in the form of
expressions of owner interest in residential development and that the
existing uses on non -vacant sites are likely to be removed. During the
outreach for the 6t" cycle Housing Element, the owners of 27 parcels
expressed interest in developing housing on the sites that they own.
g. As described in Appendix D, based on including development trends,
Property Owner Interest Forms, improvement value to land ratio, floor area
ratio, structure age, and building height, the existing uses on the non -vacant
sites identified in the site inventory are likely to be discontinued during the
7 of 8
Resolution 2024-030 June 4, 2024
planning period and do not constitute an impediment to planned residential
development on the sites during the planning period.
NOW, THEREFORE, THE TOWN COUNCIL RESOLVES AS FOLLOWS:
1. The Town Council adopts the proposed amendments to the 2023-2031 Housing
Element and the associated General Plan Amendment Application (GP-24-001)
(Attachment 1 to the staff report presented at the June 4, 2024, Town Council
meeting).
2. The previously adopted 2023-2031 Housing Element is repealed and replaced in its
entirety.
3. This resolution shall become effective upon adoption by the Town Council.
PASSED AND ADOPTED at a meeting of the Town Council of the Town of Los Gatos,
California, held on the 4' day of June, 2024, by the following vote:
TOWN COUNCIL MEMBERS:
AYES: Maria Ristow, Rob Rennie, Rob Moore
NAYS: Matthew Eludes, Mayor Mary Badame
ABSENT: None
ABSTAIN: None
SIGNED:
MAYOR, LOS GATOS TOWN COUNCIL
ATTEST:
TOWN CLER F THE TOWN OF LOS GATOS
8 of 8
Resolution 2024-030 June 4, 2024