02 Staff Report.HEOZ Amendment Adoption with attachments
PREPARED BY: Jocelyn Shoopman, Associate Planner and
Erin Walters, Associate Planner
Reviewed by: Town Manager, 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
COUNCIL AGENDA REPORT
MEETING DATE: 03/05/2024 ITEM NO: 2
DATE: February 29, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Adopt an Ordinance Titled “An Ordinance of the Town Council of the Town of
Los Gatos Amending Chapter 29, ‘Zoning Regulations,’ of the Town Code to
Define ‘By Right Approvals’ and Amend the Housing Element Overlay Zone
(HEOZ), Division 5 of Article VIII, ‘Overlay Zones and Historic Preservation,’” to
Clarify Regulations Applicable to “By Right” and “Non By Right” Residential
Development in the Housing Element Overlay Zone. 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. APPLICANT: Town of Los Gatos. PROJECT
PLANNERS: Jocelyn Shoopman and Erin Walters.
RECOMMENDATION:
Adopt an Ordinance titled “An Ordinance of the Town Council of the Town of Los Gatos
Amending Chapter 29, ‘Zoning Regulations,’ of the Town Code to define ‘By Right Approvals’
and amend the Housing Element Overlay Zone (HEOZ), Division 5 of Article VIII, ‘Overlay Zones
and Historic Preservation,’” to clarify regulations applicable to “by right” and “non by right”
residential development in the Housing Element Overlay Zone.
REMARKS:
On February 20, 2024, the Council considered and voted to introduce an Ordinance to effect an
amendment to Chapter 29, ‘Zoning Regulations,’ of the Town Code to define ‘By Right
Approvals’ and amend the Housing Element Overlay Zone (HEOZ), Division 5 of Article VIII,
‘Overlay Zones and Historic Preservation,’” to clarify regulations applicable to “by right” and
“non by right” residential development in the Housing Element Overlay Zone. The proposed
ordinance includes the language recommended by HCD regarding subdivisions as well as a
severability clause. Once adopted, the Ordinance (Attachment 1) will take effect in 30 days.
PAGE 2 of 2 SUBJECT: Housing Element Overlay Zone/Z-24-001 DATE: February 29, 2024
ENVIRONMENTAL ASSESSMENT:
An Environmental Analysis was prepared for the Housing Element update and available on the
Town’s Housing Element website at:
https://www.losgatosca.gov/DocumentCenter/View/32424/Housing-Element-Final-
Environmental-Analysis-PDF. All potentially significant effects have been analyzed adequately
in the Town of Los Gatos 2040 General Plan Environmental Impact Report (EIR), pursuant to
applicable standards including CEQA Guidelines Section 15168(c)2, because the Housing
Element update is consistent with the growth projections evaluated in the General Plan EIR.
The HEOZ is an implementation of the Housing Element, and no additional Environmental
Analysis is required.
Attachment:
1. Draft Ordinance
1 of 5
Ordinance Adoption Date
DRAFT ORDINANCE
AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
AMENDING CHAPTER 29, “ZONING REGULATIONS,” OF THE TOWN CODE
TO DEFINE “BY RIGHT APPROVALS” AND AMEND THE HOUSING ELEMENT
OVERLAY ZONE (HEOZ), DIVISION 5 OF ARTICLE VIII, “OVERLAY
ZONES AND HISTORIC PRESERVATION”
ZONING CODE AMENDMENT APPLICATION Z-24-001 PROPERTY LOCATION: TOWN WIDE APPLICANT: TOWN OF LOS GATOS
WHEREAS, the Town of Los Gatos 2023-2031 Housing Element identifies amending the
Town Code to create the Housing Element Overlay Zone as a strategy to accommodate the
Town’s Regional Housing Needs Allocation (RHNA); and
WHEREAS, the Planning Commission at its meeting on August 23, 2023, reviewed the
proposed Town Code amendments, held a public hearing, and forwarded a recommendation of
approval to the Town Council; and
WHEREAS, on October 3, 2023, the Town Council accepted the report of the Planning
Commission’s recommendation of approval for the proposed Town Code amendment, held a
public hearing, and continued to the matter to November 7, 2023; and
WHEREAS, 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 to
modify the Affordable Housing Overlay Zone to be the Housing Element Overlay Zone; and
WHEREAS, on November 21, 2023, the Town Council adopted Ordinance No. 2347 to
enact the proposed Town Code amendments; and
WHEREAS, on December 1, 2023, the Town received comments from the State Housing
and Community Development Department (HCD) regarding the adopted Housing Element
Overlay Zone ordinance; and
WHEREAS, staff has prepared a revised ordinance to address HCD’s comments; and
WHEREAS, the Planning Commission at its meeting on January 24, 2024, reviewed
proposed Town Code amendments, held a public hearing, and forwarded a recommendation of
approval to the Town Council; and
WHEREAS, this matter was regularly noticed in conformance with State and Town law
Draft Ordinance: Subject to
modification by Town Council based
on deliberations and direction.
ATTACHMENT 1
2 of 5
Ordinance Adoption Date
and came before the Town Council on February 20, 2024; and
WHEREAS, on February 20, 2024, the Town Council accepted the report of the Planning
Commission’s recommendation of approval for the proposed Town Code amendments, held a
public hearing, and introduced an ordinance to add a definition of “by right approval” and
modify the HEOZ Ordinance.
NOW, THEREFORE, BE IT ORDAINED by the Town Council of the Town of Los Gatos as
follows:
SECTION I. Section 29.10.020, “Definitions,” of Chapter 29, “Zoning Regulations,” of the Town
Code is amended to add the following between the definitions of “Business or commerce” and
“Carport” to read as follows:
By right approval shall have the meaning set forth in Government Code Section 65583.2 (i).
SECTION II. Division 5 of Article VIII, “Overlay Zones and Historic Preservation,” of Chapter 29,
“Zoning Regulations,” is amended to read as follows:
ARTICLE VIII. OVERLAY ZONES AND HISTORIC PRESERVATION
…
DIVISION 5. HOUSING ELEMENT OVERLAY ZONE
Sec. 29.80.505. Intent.
The Housing Element Overlay Zone (HEOZ) ordinance in this division is intended to
increase the supply and the mix of housing types, tenure, and affordability within the Town of
Los Gatos. Through appropriate densities, concessions, and fee deferrals or waivers, the HEOZ
encourages the development of housing affordable to all income levels on sites within the
Town that are deemed to be most appropriate for such uses. The Housing Element lists sites
within the Town of Los Gatos as key housing opportunities. The designation of these sites will
assist the Town in meeting its Regional Housing Needs Allocation (RHNA), as required by the
State.
Sec. 29.80.510. HEOZ and underlying zoning.
(a) “By right” residential developments on sites with underlying zoning of RM, CH, or NF-SP
(Table 1A below). Pursuant to Government Code Section 65583.2, subsections (h) and
(i), in the HEOZ, residential developments with at least 20 percent of the units proposed
for “low income” households are subject to “by right approval.” These developments
are subject to the following:
3 of 5
Ordinance Adoption Date
1. The developments must be developed within the density ranges 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.
2. 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.
3. No California Environmental Quality Act review shall be required.
4. Any subdivision of sites in the HEOZ shall be subject to all laws, including, but not
limited to, Chapter 24, “Subdivision Regulations,” and Sections 29.10.067-29.10-087
of the Town Code implementing the Subdivision Map Act.
5. Residential units shall occupy at least 50 percent of the floor area in all mixed-use
projects.
6. For residential developments and mixed-use projects, the standards set forth in
Table 1A shall apply.
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
(b) For all other residential developments other than those described in subsection (a), the
standards set forth in Table 1B below shall apply.
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 C-1 As authorized by N/A 1.0 35 feet 10-20
4 of 5
Ordinance Adoption Date
Commercial Section 29.60.225
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
(c) The underlying zoning development standards will remain in effect for all other
development without a residential component.
(d) Regardless of the underlying zoning designation, no residential use may be developed
that does not meet the applicable HEOZ development standards.
(e) Where standards are not specified, the development standards provided in the
underlying zoning district shall apply.
SECTION III. CEQA.
The Town Council finds as follows:
A. No further Environmental Analysis is required as an Environmental Impact Report (EIR) was
prepared and certified for the 2040 General Plan Update on June 30, 2022, which included the
proposed Town Code amendments; and
B. The Town Code amendments are consistent with the General Plan and its elements; and
C. That all proceedings have been conducted in compliance with the provisions of Government
Code Section 65850 et seq.
SECTION IV. EFFECTIVE DATE AND PUBLICATION.
This Ordinance was introduced at a regular meeting of the Town Council of the Town of
Los Gatos on the 20th day of February 2024, and adopted by the following vote as an ordinance
of the Town of Los Gatos at a regular meeting of the Town Council of the Town of Los Gatos on
the 5th day of March 2024. This ordinance shall take effect 30 days after the date it is adopted.
The Town Clerk shall cause this ordinance or a summary thereof to be published in accordance
with Section 36933 of the California Government Code.
SECTION V. SEVERABILITY.
In the event that a court of competent jurisdiction holds any Section, subsection,
paragraph, sentence, clause, or phrase in this Ordinance unconstitutional, preempted, or
otherwise invalid, the invalid portion shall be severed from this Ordinance and shall not affect
the validity of the remaining portions of this Ordinance. The Town hereby declares that it
would have adopted each Section, subsection, paragraph, sentence, clause, or phrase in this
Ordinance irrespective of the fact that any one or more Sections, subsections, paragraphs,
5 of 5
Ordinance Adoption Date
sentences, clauses, or phrases in this Ordinance might be declared unconstitutional,
preempted, or otherwise invalid.
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: ________________
This Page
Intentionally
Left Blank