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09 Staff Report.Housing Element with attachmentsPREPARED BY: Erin Walters, Associate Planner and Jocelyn Shoopman, Associate Planner Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and the Community Development Director 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: 9 DATE: February 29, 2024 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Discuss and Provide Direction on the Proposed Revisions to the Draft Revised 2023-2031 Housing Element and Next Steps. Location: Town-Wide. General Plan Amendment Application GP-22-003. RECOMMENDATION: Discuss and provide direction to staff on the proposed revisions to the Draft Revised 2023-2031 Housing Element and next steps. BACKGROUND: On December 1, 2023, the Town received the California Department of Housing and Community Development’s (HCD) findings/comment letter, previously provided as Attachment 3 to the January 16, 2024 Town Council staff report. A link to past staff reports and attachments can be viewed on the Town’s website at: https://losgatos-ca.municodemeetings.com. On December 19, 2023, the Town Council unanimously voted to follow the following process regarding the 2023-2031 Housing Element update, which includes the following actions: 1.Prioritizing the comments from the December 1, 2023 HCD comment letter; 2.Addressing the most challenging comments first and presenting the draft text of the Draft Revised Housing Element to the Town Council for review, including examples from two to three certified Housing Elements. Additionally, the Town Council hearing will provide the public with an opportunity to comment on the draft text with staff addressing the public comments in subsequent meetings, as needed; 3.Scheduling Town Council meetings with staff and the Housing Element consultant on a regular basis to complete the edits; 4.Reviewing the proposed edits with HCD, as frequently as HCD is able to meet with Town staff, and the Housing Element consultant and providing written feedback to the Council about HCD’s responses; and PAGE 2 OF 6 SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: February 29, 2024 BACKGROUND (continued): The Town Council also unanimously voted to review the Draft Revised Housing Element prior to a resubmittal to HCD. On January 16, 2024, the Town Council met to review and discuss the proposed revisions to the Draft Revised Housing Element in response to the December 1, 2023 HCD comment letter. The Town Council provided direction for each HCD comment. On January 18, 2024, staff and the Town’s Housing consultant met with the Town’s HCD reviewer and received an informal preliminary review matrix. A copy of this informal preliminary review matrix was previously provided as Attachment 9 to the January 16, 2024 Town Council staff report, available online on the Town’s agenda website at: https://losgatos- ca.municodemeetings.com. The informal preliminary comments are based on the proposed edits made to the Draft Revised Housing Element and provided to the Town’s HCD reviewer for initial feedback on December 24, 2023. On January 18, 2024, the Housing Element Advisory Board (HEAB) met to review and discuss the proposed revisions to the Draft Revised Housing Element in response to the December 1, 2023 HCD comment letter; Town Council direction provided on January 16, 2024; and HCD’s informal preliminary review matrix provided on January 18, 2024. On February 6, 2024, the Town Council met to review and discuss the proposed revisions to the Draft Revised Housing Element. The Town Council voted to modify the language of Program J and Program AY. The Town Council also approved a motion to confirm that the work of the HEAB is complete. On February 20, 2024, the Town’s HCD reviewer provided a second informal preliminary review matrix based on revisions made to the Draft Revised Housing Element and informally provided to the Town’s HCD reviewer on February 1, 2024 and February 9, 2024 (Attachment 21). On February 20, 2024, the Town Council met to review and discuss the proposed revisions to the Draft Revised Housing Element made at the February 6, 2024 Town Council meeting, as summarized below in Section A of this report. DISCUSSION: The primary purpose of this agenda item is for the Town Council to review and discuss the proposed revisions to the Draft Revised Housing Element. Staff is also seeking direction from Town Council on the timing of next steps, including the required seven-day public review period and the resubmittal to HCD for the formal 60-day review. PAGE 3 OF 6 SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: February 29, 2024 DISCUSSION (continued): A. Town Council Meeting – February 20, 2024 The Draft Revised Housing Element was reviewed by Town Council on February 6, 2024, and February 20, 2024. The Town Council staff reports and attachments can be viewed online at: https://losgatos-ca.municodemeetings.com. The revisions made to the various iterations of the Draft Revised Housing Element are color coded as follows: • Blue highlighting denotes revisions reviewed by Town Council at the January 16, 2024 Town Council meeting. • Green highlighting denotes revisions reviewed by the Town Council at the February 6, 2024 Town Council meeting. • Grey highlighting denotes revisions made at the February 6, 2024, and February 20, 2024 Town Council meetings. On February 20, 2024, the Town Council approved the following motions: 1. Include the language that HCD included in their letter, to add the words “including the combination of small multi-unit housing, religious institutions, Junior Accessory Dwelling Units (JADU) and SB10” to Program J. 2. To modify language to Program J and Program AY to the following: Modify the Zoning Code to facilitate small multi-unit housing in certain low and medium density designations. This includes creating mixed residential neighborhoods through new and innovative housing types that meet the changing needs of Los Gatos households and expand housing choices in a variety of neighborhoods. Housing types include, but are not limited to single dwelling units, multifamily dwelling units, accessory dwelling units, small and micro units, use of prefabricated homes, and clustered/cottage housing. This zoning will occur in a variety of areas throughout the Town but NOT in areas which are in Very High Fire Hazard Severity Zones, historic districts, adjacent to home in our historic inventory (currently pre-1941) homes, in hillside residential zones, within 500 feet of an evacuation route and within a half mile of a transit stop. The modification of the zoning code to facilitate small multi-unit housing will occur in a variety of areas throughout the Town, but in no event in any of the following areas or locations: Very High Fire Hazard Severity Zones, historic districts, adjacent to homes in our historic inventory (currently pre-1941 homes), hillside residential zones, within 500 feet of an evacuation route, or farther than one half mile of a transit stop. PAGE 4 OF 6 SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: February 29, 2024 DISCUSSION (continued): The following revisions were made to the Draft Revised Housing Element based on Town Council’s motions: 1. Modified language for the qualified objective for Program J on Page 10-46 of Chapter 10. 2. Modified language for Program J on Page 10-47 and Program AY on Pages 10-77 and 10- 48 in Chapter 10. Extracted pages from the Draft Revised Housing Element to illustrate these proposed revisions in grey highlighting have been provided as Attachment 20. On February 20, 2024, the Town Council unanimously approved a motion asking the Town Manager to share with the Council any information regarding the Housing Element that has been provided to HCD or received from HCD whether written or oral with 24 hours of receipt. Communications with HCD are further described in Section B below. B. HCD Communications On February 20, 2024, shortly before the Town Council meeting, the Town’s HCD reviewer provided a second informal preliminary review matrix (Attachment 17) based on revisions made to the Draft Revised Housing Element and informally provided to the Town’s HCD reviewer on February 1, 2024, and February 9, 2024. On February 22, 2024, staff requested a meeting with the Town’s HCD reviewer and HCD’s Senior Program Manager to discuss the second informal preliminary review matrix prior to the March 5, 2024 Town Council meeting (Attachment 21). On February 26, 2024, the HCD reviewer responded with availability to meet on Friday, March 1, 2024. Staff has scheduled a Zoom meeting on Friday, March 1, 2024 with Town staff, the Town’s Housing Element consultant, the Town’s HCD reviewer, and HCD’s Senior Program Manager to conduct a live editing meeting where staff and the Housing Element consultant can share the Town’s draft approach in addressing the preliminary review matrix comments. Attachment 19 provides the HCD second informal preliminary review matrix with staff’s draft responses. Town staff and the Housing Element consultant will be meeting with HCD on Friday, March 1, 2024 to verify the Town’s draft approach to responding the comments. An Addendum will be provided to Town Council on Monday, March 4, 2024, summarizing the results of the meeting with the HCD. PAGE 5 OF 6 SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: February 29, 2024 DISCUSSION (continued): C. Next Steps This agenda item provides the Town Council an opportunity to discuss the proposed revisions to the Draft Revised Housing Element and provide direction to staff on the next steps. The Town’s Housing consultant and Town’s outside legal counsel will be available to answer Council Member questions. As required by AB 215, revisions to the Draft Revised Housing Element must be made available to the public for a seven-day review period prior to a formal resubmittal to HCD. Should the Town Council be satisfied with the proposed revisions to the Draft Revised Housing Element, the seven-day review period could be started on Thursday, March 7, 2024, ending on Thursday, March 14, 2024, with a formal resubmittal to HCD by Monday March 18, 2024. Subsequent review by HCD will take up to 60 days. CONCLUSION: Staff looks forward to the Town Council’s discussion and direction. PUBLIC COMMENTS: The meeting has 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. COORDINATION: The Community Development Department coordinated with the offices of the Town Attorney and Town Manager in the preparation of this report. 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/EnvironmentalAnalysis. 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. PAGE 6 OF 6 SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: February 29, 2024 ATTACHMENTS: Previously Received with the January 16, 2024 Staff Report: 1. Draft Revised Housing Element, Track Changes Copy 2. Draft Response Table 3. December 1, 2023 HCD’s Findings Comment Letter 4. Public Comments Received Between 11:01 a.m., Tuesday, December 19, 2023, and 11:00 a.m., Thursday, January 11, 2024 Previously Received with the January 16, 2024 Desk Item: 5. Comments from the Vice Mayor 6. Public Comments Received Between 11:01 a.m., Thursday, January 11, 2024, and 11:00 a.m., Tuesday, January 16, 2024 Previously Received with the February 6, 2024 Staff Report: 7. Draft Revised Housing Element, Track Changes – January 2024 8. Draft Response Table – January 2024 9. HCD Informal Preliminary Review Matrix with Staff’s Responses 10. Goldfarb & Lipman, LLP Feedback Table with Staff’s Responses 11. Track Changes and Clean Version of Program AY Housing Mobility 12. Public Comments Received Between 11:01 a.m., Tuesday, January 16, 2024, and 11:00 a.m., Thursday, February 1, 2024 Previously Received with the February 5, 2024 Addendum: 13. Pages from the Draft Revised Housing Element Without the Recommendations Made by the Housing Element Advisory Board 14. Correspondence with HCD Previously Received with the February 20, 2024 Staff Report: 15. Extracted Pages from the Draft Revised Housing Element with Revisions Previously Received with the February 20, 2024 Desk Item: 16. Correspondence with HCD 17. HCD Second Informal Preliminary Review Matrix 18. Public Comment Received Between 11:01 a.m., Thursday, February 15, 2024, and 11:00 a.m., Tuesday, February 20, 2024 Attachments Received with this Report: 19. HCD Second Informal Preliminary Review Matrix with Staff’s Responses 20. Extracted Pages from the Draft Revised Housing Element with Revisions 21. Correspondence with HCD Town of Los Gatos Informal 2 Preliminary Review Received 12/24/2023 Subsequent Informal 2: 2/01/24 *Green highlighting denotes HCD’s Second Informal Preliminary Review Comments Prior Review: 12/01/2023 Prior HCD Finding Page # Prelim Rev 1 Page# Prelim Rev 2 HCD Feedback Summary Staff’s Draft Responses as of 02/29/2024 Affirmatively Furthering Fair Housing Income and Racial Concentration Area of Affluence (RCAA): 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) to better formulate appropriate policies and programs. 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. A-69 ~/No A-71 Yes/~ Minimal revision. Prior Review: Minimal analysis added; should address trends, coincidence with other factors (e.g., income, TCAC), past strategies and effectiveness such as result of North 40 in the prior planning period, zoning, land use and other factors. These analyses should be incorporated into contributing factors New language discussing the past effectiveness of diversifying the Town’s housing stock was added in a grey highlight to Appendix A on Page A-19. Town staff and the Housing Element consultant will be meeting with HCD on Friday, March 1, 2024, to verify the Town’s draft approach to responding to this comment. Contributing Factors to Fair Housing Issues: Based on a complete analysis, the element should re-assess and prioritize contributing factors to fair housing issues. For example, the Town is wholly a RCAA, highest resource and highest median incomes in contrast to the rest of the region. As a result, fair housing issues such as the lack of affordable housing and segregation from the rest of the region should be a high priority. A-18 ~ A20 Yes Re-assess based on a complete analysis Goals and Actions: As noted above, the element must include a complete analysis of affirmatively furthering fair housing (AFFH). The element must be revised to add goals and actions based on the outcomes of a complete analysis. In addition, while the element includes some actions toward AFFH and enhancing housing mobility (e.g., choices and affordability), actions should be added, 10-43- 10-50- 10-65 10-66 ~/No 10-76 ~ Include metric for home sharing action (Program Q). Program AY Prior Review: See Programs J, L, O, Q, T, AV A quantified metric was included in a grey highlight for the homesharing action in Program Q on Page 10-53 of Chapter 10, as well as Program AY on Page 10-79 of Chapter 10. Town staff and the Housing Element consultant will be meeting with HCD on Friday, March 1, 2024, to verify the Town’s draft ATTACHMENT 19 Prior HCD Finding Page # Prelim Rev 1 Page# Prelim Rev 2 HCD Feedback Summary Staff’s Draft Responses as of 02/29/2024 numeric targets should be increased, and geographic targeting should be fine-tuned to better promote inclusive neighborhoods throughout the Town. This is particularly important since over 80 percent of the lower-income regional housing need allocation (RHNA) is isolated in two census tracts. As noted in HCD’s prior review and the assessment of fair housing, the Town is wholly a racially concentrated area of affluence, highest resource and highest median incomes in contrast to the rest of the region. These conditions and circumstances warrant significant and robust actions (not limited to the RHNA) to promote housing mobility and increasing housing choices and affordability throughout the Town, including lower-density neighborhoods. Actions should be added and revised with aggressive numeric targets and geographic targets throughout the Town, including lower-density neighborhoods. Examples include creating more housing choices and affordability in single-family neighborhoods beyond complying with law (e.g., SB 9, ADUs) such as missing middle housing types, targeting affordable housing funding, homesharing, more than one unit of converted space within a single-family structure, increased multifamily capacity, enhanced efforts on religious institutional sites and other alternative land use and financing strategies. Program J should clarify that capacity will be increased (not just zoning text), development standards will be adjusted to facilitate maximum densities and increase the objective (~150 units) or add strategies (religious institutional, JADU plus, SB 10) Consider adding JADU plus to ADU HCV homesharing program and increasing objective Program AV should go beyond complying with SB 9 (marketing, modification to development standards) For all housing mobility actions (Programs J, L, O, Q, T, AV), geographic targeting should be revised to clarify town-wide including highest median income areas and numeric targets should be reflected with geographic targeting (e.g., 100 units townwide and 50% in highest median income areas) approach to responding to this comment. Sites Inventory, Analysis and Adequate Sites Small Sites: The element identifies several sites with parcels less than a half-acre (p. D-13) that have common ownership and, in some cases, expressed interest to redevelop the site. For small sites with expressed interest in redevelopment, the element should clarify that the expressed interest is also in consolidating the sites. For the remaining sites (Sites D-2 and D-5), the element should explain the circumstances leading to the potential for consolidation such as necessity to consolidate due to access, feasibility, shape, or site planning flexibility. Based on the outcomes of this analysis, the element D-2 Yes D-11 N/A Prior HCD Finding Page # Prelim Rev 1 Page# Prelim Rev 2 HCD Feedback Summary Staff’s Draft Responses as of 02/29/2024 should add or modify Program K (Lot Consolidation) to further promote lot consolidation, if appropriate. Electronic Sites Inventory: For your information, while the Town has submitted an electronic sites inventory as part of this submittal, pursuant to Government Code section 65583.3, the Town must submit an electronic sites inventory with its adopted housing element. Please see HCD’s housing element webpage at https://www.hcd.ca.gov/planning- andcommunity-development/housing-elements for a copy of the form and instructions. The Town can reach out to HCD at sitesinventory@hcd.ca.gov for technical assistance N/A FYI FYI Adequate Sites Programs: As noted in the prior review, if necessary to make appropriate zoning available to accommodate the lower-income RHNA, programs must be revised to meet all requirements pursuant to Government Code section 65583.2, subdivisions (c), (h) and (i). The element includes Programs D (Program By Right Zoning Text Amendment to Accommodate RHNA), AR (General Plan Amendment) and AS (Adequate Sites for Housing) to address these requirements. With respect to sites identified in prior planning periods, the element meets statutory requirements, but these actions must be completed by January 31, 2024. With respect to a shortfall of adequate sites to accommodate the lower-income RHNA, the element includes Programs AR and AS. However, the Programs commit to the appropriate zoning given the rezoning occurs after the statutory deadline of January 31, 2023. HCD understands the Town completed the rezoning after the statutory deadline and, therefore, the rezoning must meet all by right requirements pursuant to Government Code section 65583.2, subdivisions (h) and (i). Based on a cursory review, the rezoning does not appear to meet these requirements. As a result, these programs must clearly commit to meet all by-right requirements by January 31, 2024. Not Found No/? Yes Rezone ordinance 2347, Ord 2348, Ord 2349, Ord 23507; The second reading of the amendment to the Housing Element Overlay Ordinance will be heard by the Town Council on March 5, 2024. Prior HCD Finding Page # Prelim Rev 1 Page# Prelim Rev 2 HCD Feedback Summary Staff’s Draft Responses as of 02/29/2024 In addition, please be aware, the recent California appellate decision in Martinez v. City of Clovis found that while overlays can be used in a rezone, when the base zone allows residential development, both the base zone and the overlay zone must comply with the minimum density requirements of Government Code section 65583.2, subdivision (h). The Town may need to adjust its rezoning strategy if the underlying zoning for sites that will be rezoned allows minimum densities less than 20 dwelling units per acre. Martinez v. City of Clovis (2023) 90 Cal.App.5th 193, 307 Cal.Rptr.3d 64. Governmental Constraints Land Use Controls: HCD’s prior review found that the Town must list and evaluate development standards in the North Forty Specific Plan and High Density Residential and Commercial designation. In response, the Town has now listed development standards by each zoning district but should also analyze those development standards for impacts on housing supply and cost and most importantly, the ability to encourage maximum densities without exceptions. For example, lot coverages, heights, and setbacks in the Multifamily Residential (RM) zone; and lot coverage heights and guest parking requirements in the North Forty Specific Plan could be constraints. Based on the outcomes of a complete analysis, the element should add or modify programs to include specific commitment to review and revise these development standards as necessary. C-1 C-5 10-62 ? 10-43 No Program D includes action to remove guest parking in North Forty Specific plan; however, include a program to revise all MF guest parking requirements, specifically RM, CH zones. Prior Review: RM parking program? Guest parking reduced? Guest parking and lot coverage in the North Forty Specific Plan analyzed? Additional language was added in a grey highlight to Program AA on Page 10-60 of Chapter 10 to clarify the intent of the program to amend the Zoning Code for guest parking requirements in all zones of the Town. Town staff and the Housing Element consultant will be meeting with HCD on Friday, March 1, 2024, to verify the Town’s draft approach to responding to this comment. Local Processing and Permit Procedures: The element now discusses decision-making bodies and lists approval findings for the Architecture and Site Application. However, the element should also analyze these processes to better inform programs to address identified constraint. For example, the element mentions the decision-making body depends on the scope of the application. The element should explain the scope, resulting decision-making body and impacts on approval timing and certainty. In addition, the element lists approval findings and 10-62 No/? C-41 ~ Brief statement made on approval body but must discuss and analyze the scope of the trigger for PC review. Program AQ Prior Review: See Program AQ Program should remove or modify Findings 4 and 6 of the architectural and site process Additional language was added in a grey highlight to Page C-41 of Appendix C to clarify that the Planning Commission is the deciding body for all types of multi- family residential and mixed-use projects. Town staff and the Housing Element consultant will be meeting with HCD on Friday, March 1, 2024, to verify the Town’s draft Prior HCD Finding Page # Prelim Rev 1 Page# Prelim Rev 2 HCD Feedback Summary Staff’s Draft Responses as of 02/29/2024 concludes some findings may be constraints then modifies Program AQ (Zoning Code Amendments) to amend approval findings (considerations). But the element should discuss which approval findings may be constraints to better inform implementation of Program AQ. Scope trigger for approval body analyzed? Addressed? approach to responding to this comment. Remove the housing unit cap Programs: As noted above, 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. In addition, programs should be revised, as follows: TBD TBD Depends on complete analysis Program D (Additional Capacity for the North Forty Specific Plan): The Program should also commit to establish or modify development standards to facilitate achieving maximum densities, regardless of the level of affordability and should specify to either remove the unit cap or increase the unit cap to allow maximum build out of each parcel, including State Density Bonus Law or other circumstances that might warrant increasing allowable densities. 10-41 ~/No/? No Include a specific commitment to increase or remove unit cap (within 6 months) Prior Review: No action included to modify development standards? No action to remove cap. Commitments should also not implement the cap to allow maximum build out of each parcel or other circumstances warranting increasing allowable densities The language of Program D on Page 10-43 of Chapter 10 was modified in a grey highlight to state that the North Forty Specific Plan will be amended to remove the unit cap. Town staff and the Housing Element consultant will be meeting with HCD on Friday, March 1, 2024, to verify the Town’s draft approach to responding to this comment. Program V (Housing opportunities for Persons living with Disabilities): Given the importance of promoting housing access for persons with disabilities, the Program could be modified with a date earlier in the planning period (e.g., by December 2024). ? No/? 10-57 Yes Program AA (Reduce Parking Standards): The Program currently commits to “Initiate a study to determine specific updates…” While initiating a study and making a determination are important steps by themselves, these actions do not result in outcomes. The Program should clearly commit to amending the municipal code. For example, the Program could commit to: “Initiate a study and outreach, including with developers, and amend the Municipal Code, as follows:…” 10-53 Yes N/A Prior HCD Finding Page # Prelim Rev 1 Page# Prelim Rev 2 HCD Feedback Summary Staff’s Draft Responses as of 02/29/2024 Program AQ (Zoning Code Amendments): The Program commits to apply the Housing Element Overlay Zone (HEOZ) to identified sites and modify development standards. HCD understands this action has been completed. Based on a cursory review of the Town’s Ordinance 2347, some development standards such as heights may be a constraint on achieving maximum densities. As a result, this Program should commit to monitor and evaluate these development standards, including outreach with the development community, and making adjustments, as appropriate, by a specified date. 10-61 ~/No 10-70 Yes Program AQ Program AW (Story Poles and Netting Policy): While the Program now commits to revise Story Poles and Netting Policy Requirements; these requirements are constraints and impact housing costs; supply (number of units) and approval certainty and should be removed or replaced with cost effective measures to promote certainty for the developers and the community. Further, the element should evaluate the effectiveness of any future requirements or measures, and making adjustments, as necessary, by a specified date (e.g., by 2028). 10-65- No C-38 Yes Program AW Prior Review: Video rendering should be expanded to other visual methods Scope of alternative should be expanded to all multifamily and mixed use Housing Programs: ADU Program Q Accessory Dwelling Units (ADU): While the Program now commits to amend the ADU Ordinance, it must also commit to establish incentives such as modifying development standards (e.g., heights), pursuing funding; waiving fees beyond ADU law; proactive marketing and establishing points of contact to ease permitting processes. In addition, the Program commits to monitor production and affordability of ADUs annually but should also commit to making adjustments by a specified date (e.g., within six months) if production and affordability are not meeting assumptions. Further, the Program should clearly commit to options beyond incentives such as rezoning if production and affordability far differs from assumptions. 10-48- Yes N/A Prior HCD Finding Page # Prelim Rev 1 Page# Prelim Rev 2 HCD Feedback Summary Staff’s Draft Responses as of 02/29/2024 Public Participation: 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 should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate. Please be 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. HCD particularly encourages the Town to continue engaging commenters on this review. These comments contained valuable insights that can result in a more effective housing elements, especially related to programs and specific commitment. HCD’s future reviews will continue to consider the extent to which the revised element documents how the Town solicited, considered, and addressed public comments in the element. The Town’s consideration of public comments must not be limited by HCD’s findings in this review letter. ? 10-17 Yes/~ Summary of Public comments submitted. Town staff will continue to engage with the community regarding the Housing Element update process by maintaining the information posted on the Housing Element update website, through posting on the Town’s various social media accounts, and evaluation of public comments received. Other (HCD use only) Program J N/A No New language excluding missing middle housing types in multiple areas throughout the Town. The program should remove new language and proceed with previous program language informally reviewed. Modifications to the language of Program J and Program AY were made in response to the approved motion from the February 20, 2024, meeting in a grey highlight on Pages 10-46, 10-47, 10-77, and 10-78 of Chapter 10. Town staff and the Housing Element consultant will be meeting with HCD on Friday, March 1, 2024, to discuss the Town’s draft approach to responding to this comment. Prior HCD Finding Page # Prelim Rev 1 Page# Prelim Rev 2 HCD Feedback Summary Staff’s Draft Responses as of 02/29/2024 Program AY N/A No See comments above. Modifications to the language of Program J and Program AY were made in response to the approved motion from the February 20, 2024, meeting in a grey highlight on Pages 10-46, 10-47, 10-77, and 10-78 of Chapter 10. Town staff and the Housing Element consultant will be meeting with HCD on Friday, March 1, 2024, to discuss the Town’s draft approach to responding to this comment. Sb 9 units N/A 10-9 D-2 No/? Is the town now counting SB 9 units towards RHNA? Table D-2? The Town is not counting SB 9 units towards the RHNA. Table D-2 of Appendix D has the SB 9 row struck out in the track changes version of the Draft Revised Housing Element. Town staff and the Housing Element consultant will be meeting with HCD on Friday, March 1, 2024, to clarify this comment. Public comments TBD Yes Additional comments? Prior Review: Must address new public comments No additional comments at this time. Town staff will continue to engage with the community and evaluate public comments received. Document availability FYI FYI Rezone timing FYI FYI Can’t be found in full compliance until all rezones are complete The second reading of the HEOZ was adopted by the Town Council on December 5, 2023, and went into effect on December 21, 2023. A second reading of an amendment to the HEOZ will be considered by the Town Council on March 5, 2024. 50% nonvacant resolution FYI FYI Electronic sites inventory FYI FYI Overlay No Program AQ HE Overlay zone N/A Modification Authority N/A N/A Informal submittal N/A 10. Housing Element JanuaryFebruaryNovemberSeptember March 2023 2024 HCD Draft Revised Draft 2023-2031 Housing Element 10-43 Programs project) of sites identified in the Site Inventory to maintain sufficient sites at appropriate densities to accommodate RHNA for lower income households. If an approval of a development results in a reduction of site capacity below the residential capacity needed to accommodate the remaining RHNA, including for lower income households, the Town will identify and zone sufficient adequate sites at appropriate densities to accommodate the remaining RHNA. Responsible Department/Review Authority Community Development Department Timeframe Ongoing tracking as developments are approved Funding Source None required Quantified Objective Maintain RHNA capacity Performance Metric(s) Number of units and affordability level applied for; number of units and affordability level entitled; number of units and affordability level permitted; number of units and affordability level completed D Additional Housing Capacity for the North Forty Specific Plan Amend the North Forty Specific Plan to allow for a density from 30 increase the maximum allowable density from 20 dwelling units per acre to 40 dwelling units per acre and increase the total number of dwelling units allowed in the Specific Plan. Sites identified in the North Forty Specific Plan Area are reuse sites and must permit owner-occupied and rental multi-family uses by-right for developments in which 20 percent or more of the units are affordable to lower-income households. See Implementation Program ARAQ and ASAR. Amend the North Forty Specific Plan to remove the housing unit capinclude a policy specifying that additional units as a result of the State density bonus law, SB 330, and other applicable state laws will not count toward the unit cap. This policyamendment will allow developments to reach the maximum allowable density plus the additional units due to density bonus and other applicable regulations. Annually monitor the impact of implementing the cap on housing production. If by the end of 2027 the cap is found to be constraining to housing production, amend the Specific Plan to modify the cap. Implementation Policies HE-1.1 Adequate Sites HE-3.3 Efficient Development Processing Responsible Department/Review Authority Community Development Department Timeframe January 2024 Funding Source None required Quantified Objective Facilitate the construction of 15 45 new homes for lower-income households. Performance Metric(s) Number of affordable homeownership units entitled and the number of units entitled for lower-income Households ATTACHMENT 20 HCD Revised Draft Revised 2023-2031 Housing Element 10-44 HCD Revised Draft Revised 2023-2031 Housing Element MarchSeptemberNovemberJanuary February 20232024 Programs Amend the North 40 Specific Plan to remove guest parking requirements and modify development standards to facilitate achieving maximum densities. E Affordable Development on Town Owned Property Pursue opportunities to work with an affordable housing developer or enter into a public-private partnership to develop to construct affordable housing, targeting lower-income households on Town owned property. Implementation Policies HE-1.1 Adequate Sites HE-2.9 Public/Private Partnerships Responsible Department/Review Authority Town Manager Timeframe Ongoing effort Funding Source None required Quantified Objective The number of Town owneds two properties that could be suitable for affordable housing up to 20 units. Performance Metric(s) The number of Planning applications submitted for new affordable housing F Update Permit Software System Update the existing permit software system to better monitor average processing times for ministerial and discretionary development permits. Use data to set baselines timelines to drive improvements. Update the Town planning and zoning regulations and remove permit processing constraints as appropriate. Implementation Policies HE-3.3 Efficient Development Processing Responsible Department/Review Authority Community Development Department Timeframe Review and update regulations as appropriate at biannual years Funding Source None required Quantified Objective Reduce processing time by five percent Performance Metric(s) Improve current permit processing time G Report Annually on Housing Availability Update the existing permit software system to better monitor average processing times for ministerial and discretionary development permits. Use data to set baselines timelines to drive improvements. Update the Town planning Implementation Policies HE-1.1 Adequate Sites HE-1.5 Variety of Housing Choices HE-3.3 Efficient Development Processing Responsible Department/Review Authority Community Development Department Timeframe This Page Intentionally Left Blank HCD Revised Draft Revised 2023-2031 Housing Element 10-46 HCD Revised Draft Revised 2023-2031 Housing Element MarchSeptemberNovemberJanuary February 20232024 Programs Performance Metric(s) Delivery of Housing Element IJ Helping Senior Housing s PrograResourcesm Provide financial assistance for health, safety, emergency and accessibility home repairs to low-income seniors and low- income mobile homeowners through the Below Market Price Program funds, subject to availability of Program funds. Provide regularly updated senior housing resource materials at the Adult Recreation Center, Library, and Farmers’ Market. Implementation Policies HE-1.6 Universal Design HE-2.7 Senior Housing HE-2.8 Equal Housing and Special Needs HE-6.1 Fair Housing HE-6.2 Financial Assistance HE-6.3 Housing for Persons with Special Needs HE-6.4 Affordable Housing Awareness Responsible Department/Review Authority Responsible Department/Review Authority Community Development Department and the Town Council Timeframe Ongoing and annual effort Update materials annually Funding Source Town Affordable Housing Funds Quantified Objective Maintain the existing housing stock by funding three home repairs to lower income seniors annually Performance Metric(s) Measure the number of units assisted versus the need JK Small Multi-Unit Housing, “Missing Middle” The Housing Element supports the land use goal of providing opportunities for housing that can accommodate the needs, preferences, and financial capabilities of current and future residents in terms of different housing types, tenures, density, sizes, and costs. Specifically, the Town aims to create mixed residential neighborhoods through new and innovative housing types that meet the changing needs of Los Gatos households and expand housing in a variety of neighborhoodsall neighborhoods. These housing types include, but are not limited to, single dwelling units, multifamily dwelling units, accessory dwelling units, small and micro units, use of pre-fabricated homes, and Implementation Policies HE-1.5 Variety of Housing Choices HE-2.4 Rental Housing HE-3.3 Efficient Development Processing Responsible Department/Review Authority Community Development Department Timeframe December 2024 Funding Source None required Quantified Objective Increase the number of housing units, including the combination of small multi-unit housinglow-rise multi-family developments, religious institutions, Junior Accessory Dwelling Unit (JADU), and SB 10 by five50150 units from the previous yearover eight years with the goal of achieving 100% of the units 10. Housing Element JanuaryFebruaryNovemberSeptember March 2023 2024 HCD Draft Revised Draft 2023-2031 Housing Element 10-47 Programs clustered housing/cottage housing. The Town will also promote small multi-unit housing that increases density while remaining consistent with the building scale and character present in existing neighborhoods. This includes multi-family units or clustered residential buildings that provide relatively smaller, less expensive units within existing neighborhoods. Update the Zoning Code to facilitate low rise multi-family structures small multi-unit housing in the low to mMedium Residential Density designations. Modify the Zoning Code to facilitate small multi-unit housing in certain low and medium density designations. This includes creating mixed residential neighborhoods through new and innovative housing types that meet the changing needs of Los Gatos households and expand housing choices in a variety of neighborhoods. Housing types include, but are not limited to single dwelling units, multifamily dwelling units, accessory dwelling units, small and micro units, use of prefabricated homes, and clustered/cottage housing. This zoning will occur in a variety of areas throughout the Town but NOT in areas which are in Very High Fire Hazard Severity Zones, historic districts, adjacent to home in our historic inventory (currently pre-1941) homes, in hillside residential zones, within 500 feet of an evacuation route and within a half mile of a transit stop. The modification of the Zoning Code to facilitate small multi-unit housing will occur in a variety of areas throughout the Town, but in no event in any of the following areas or locations, Very High Fire Hazard Severity Zones, historic districts, adjacent to homes in our historic inventory (currently pre-1941 homes), hillside residential zones, within 500 feet of an evacuation route, or farther than one half mile of a transit stop. Small multi-unit housing is defined as multiple units on a single parcel (whether attached or detached) that are compatible in scale and form with detached single- family homes. Common housing types include duplexes; triplexes; fourplexes; courtyard apartments; cottage courts; in low to medium density designations and high median income areas. Performance Metric(s) Complete Zoning Code amendment by December 2024 and track the number of entitled Planning applications received per year HCD Revised Draft Revised 2023-2031 Housing Element 10-48 HCD Revised Draft Revised 2023-2031 Housing Element MarchSeptemberNovemberJanuary February 20232024 Programs townhomes; triplex stacked (vertical); and live-work spaces. Promote this program through publication, to include the following information: Low rise multi-family dwelling units ranging from two to 10 units can help meet the needs of families, seniors and students. Permit processing times tend to be shorter than larger multi-family buildings due to the low-rise nature of the structures. Specifically, update the Zoning to allow for all housing types considered for the provision of Small Multi-Unit Housing types as part of Low Density High Density Residential designations. Research existing regulatory impediments to the creation of new housing types that have the potential to fulfill unmet housing needs (e.g., tiny homes, co-housing developments) and if necessary, amend applicable ordinances and development standards to facilitate and to allow for their development at the maximum density. Pursue establishment of a maximum average unit size as a tool to moderate unit sizes for developments over a certain size but to allow flexibility for a range of unit sizes. L Rental Housing for Large Families Encourage development of multi-family rental housing that is greater than two bedrooms to encourage the provision of adequate rental housing for families. Implementation Policies HE-1.5 Variety of Housing Choices HE-2.4 Rental Housing Responsible Department/Review Authority Community Development Department Timeframe Ongoing and annual effort Funding Source None required Quantified Objective Four family friendly multi-family rental housing units are entitled a year Performance Metric(s) Number of two-, three-, and four-bedroom units entitled and number of family friendly designated units MK Lot Consolidation Implementation Policies This Page Intentionally Left Blank HCD Revised Draft Revised 2023-2031 Housing Element 10-52 HCD Revised Draft Revised 2023-2031 Housing Element MarchSeptemberNovemberJanuary February 20232024 Programs Facilitate annual outreach to developers. Annually identify development and housing opportunities Reduce development impact fees and permit processing fees for affordable housing projects for extremely low and very low units by 10 percent Performance Metric(s) Number of affordable homeownership units entitled and number of units entitled for moderate, low, and very-low income households. PT Purchase Affordability Covenants in Existing Apartments Create a program for the Town to purchase affordability covenants with BMP funding to increase the supply of affordable housing or “buy-down” existing affordability covenants to have deeper affordable units in existing rental properties. This program is analogous to purchasing covenants in new developments in conjunction with the BMP program, but for existing apartments. In existing and new rental developments, the Town could provide a rehabilitation loan or another form of subsidy to a rental property owner in exchange for securing affordability covenants on a percentage of units and the owner’s agreement to restrict rents on these units to levels that would be affordable to very low- and low- income households. Implementation Policies HE-2.1 Financial Resources Responsible Department/Review Authority Community Development Department, Town Council Timeframe January 2028 2026 Funding Source Below Market Price Housing In-lieu Fees Quantified Objective Affordability covenants for three housing units with BMP funding to increase the supply of affordable housing per year Performance Metric(s) Number of affordability covenants UQ Accessory Dwelling Units Facilitate ADU/JADU production with the following efforts: Waive building fees when an ADU is deed restricted for very low-and low- income pursuant to Town Code (Section 29.10.320(a). Initiate a marketing program for homeowners on the benefits of ADUs and the availability of resources (templates, cost calculators, technical support) to support development. Promote the use of Housing Choice Vouchers (HCVs) and homesharing (once established) to make the units Implementation Policies HE-1.7 Infill Opportunities in Single-Family Neighborhoods HE-2.4 Rental Housing HE-2.5 Pre-Approved Accessory Dwelling Units HE-2.6 Promote Accessory Dwelling Unit Construction HE-2.7 Senior Housing HE-3.1 Regulatory Incentives for Affordable Housing HE-3.3 Efficient Development Processing HE-3.5 Development Impact and Permit Fees Responsible Department/Review Authority Community Development Department Timeframe 10. Housing Element JanuaryFebruaryNovemberSeptember March 2023 2024 HCD Draft Revised Draft 2023-2031 Housing Element 10-53 Programs available to lower income households. Collaborate with countywide efforts to develop pre-approved ADU plans suitable for Los Gatos, including designs that are ADA accessible. Streamline the review and permitting of ADU’s by publishing pre-approved plans including plans that are ADA- compliant, which shall be posted on the Town’s website. Promote California Housing Finance Agency (CHFA) ADU grants of $40,000 available to qualified homeowners for pre-development costs. Proactively promote information made available through the Santa Clara County Planning Collaborative, a joint initiative of all 16 jurisdictions in the county on the Town’s website with resources for interested property owners. Actively apply for grant programs, as funds are made available to assist property owners in the construction of ADU’s/JADU’s. Monitor funding availability annually. Develop and adopt objective standards to allow more than one (at minimum two) JADUs. The Town’s ADU Ordinance goes beyond the requirements of State law by allowing a 10 percent increase in the floor area ratio standards. Annually monitor number of ADU’s/JADU’s produced, affordability levels. By July 2027, if the production of ADU/JADU is falling short of the projected trend, and make adjustmentsthe Town will initiate developing strategies (additional incentives, flexible development standards, and/or identify additional sites for housing development) to accommodate a potential shortfall if determined necessary (i.e. adopt additional incentives or other strategies).and assess whether additional strategies and adjustments are necessary to increase ADU production, including searching for innovative funding sources and revisiting the ADU marketing program Initiate marketing program and coordinate efforts on pre-approved ADU plans (2023) and other resources and services (December 2025) Select at least three plans and conduct media campaign to promote (December 2024) Monitor Annually monitor the production and affordability of ADUs Amend the ADU Ordinance (January 2024) Monitor ADU/JADU production against projection by July 2027 and develop strategies to address any potential shortfall in meeting RHNA by the end of 2027 annually and adjust, if necessary, within six months Funding Source Below Market Price Housing In-lieu Fees for Waiving Building Fees and General Fund Quantified Objective Facilitate cConstruction of at least 200 ADUs or JADUs with a goal to facilitate construction of up to 200 350 ADUs or JADUs throughout the Planning period with a goal of 5% of these units being affordable to lower-income households and 50% in single-family, high median income neighborhoods Publish pre-approved ADU plans and templates, including designs that address ADA and senior housing needs Post pre-approved plans on Town website Use the Town’s social media, website, local press, and community events to distribute information Adopt objective standards to allow more than one JADU per property by July 2025 Facilitate construction of at least 10 JADUs in low density neighborhoods Through a homesharing program, assist at least 50 homeowners in renting out available ADUs and JADUs, especially in high/higher resource areas throughout the Planning period Performance Metric(s) Number of Building Permits issued; number of ADU/JADUs rented at a rental rate affordable for very low-and low-income households HCD Revised Draft Revised 2023-2031 Housing Element 10-54 HCD Revised Draft Revised 2023-2031 Housing Element MarchSeptemberNovemberJanuary February 20232024 Programs for property owners. shortfall by the end of 2027. Amend the ADU Ordinance to comply with State law. Work with a nonprofit organization to administer a homesharing program that will expand beyond roommate matching, by assisting homeowners in renting out ADUs and JADUs, further serving residents in the region with outreach for potential tenants. VR Density Bonus Conduct a study to evaluate the existing Density Bonus Ordinance and recommend changes to increase the number of units constructed. The study will include an evaluation of the implementation of the ordinance to date and actual construction of affordable housing units that utilized the Density Bonus. Additional density and height incentives beyond what the State requires will be considered (i.e., fee reductions, add free density of BMP units). The study shall recommend improvements to the Ordinance based on the outcome of the evaluation. Amend the Density Bonus Ordinance to comply with State law. Implementation Policies HE-3.1 Regulatory Incentives for Affordable Housing HE-2.3 Mixed-Use Development HE-2.8 Equal Housing and Special Needs Responsible Department/Review Authority Community Development Department Timeframe Amend the Density Bonus Ordinance (December 2024) Complete study by June 2026 and implement recommended actions by December 2029 Funding Source None required Quantified Objective Increase affordable housing units generated by an amended Density Bonus Ordinance Performance Metric(s) Measure the number of affordable units that received entitlements W Affordable Housing Overlay Zone (AHOZ) Continue to encourage development of housing affordable to all income levels on property within this Town Overlay Zone. The Overlay property on Knowles Avenue is a key site for a mixed income affordable housing project. Implementation Policies HE-3.1 Regulatory Incentives for Affordable Housing HE-2.7 Senior Housing HE-2.8 Equal Housing and Special Needs HE-2.9 Public/Private Partnerships HE-2.11 Smart Growth Responsible Department/Review Authority Community Development Department Timeframe Complete by 2025 Funding Source This Page Intentionally Left Blank HCD Revised Draft Revised 2023-2031 Housing Element 10-60 HCD Revised Draft Revised 2023-2031 Housing Element MarchSeptemberNovemberJanuary February 20232024 Programs Study and implement recommendations with regard to the Town’s Rental Dispute Mediation and Arbitration Ordinance 2128 to help further stabilize rents for long-term residents. HE-2.4 Rental Housing HE-6.6 Rental Dispute Mediation and Arbitration Ordinance Responsible Department/Review Authority Community Development Department Timeframe Complete study by January 2025 and implement Municipal Code changes by June 2025 Funding Source Below Market Price Housing In-lieu Fees Quantified Objective Implement improvement opportunities for the Rental Dispute Mediation and Arbitration Ordinance Performance Metric(s) Measure the number of disputes resolved versus unresolved AIAA Reduce Parking Standards Initiate a study and outreach, including developers to determineand to make specific updates that would result amendments to for the Municipal Code, as follows to address the following: Align parking requirements with the preparation of Objective Design Standards. Reduce parking requirements near transit. Remove guest parking requirements for all residential and mixed-use projects in all zones. Allow parking to be unbundled from residential units. Implementation HE-2.7 Senior Housing HE-2.8 Equal Housing and Special Needs HE-3.1 Regulatory Incentives for Affordable Housing Responsible Department/Review Authority Community Development Department Timeframe Complete study by January 2025 and implement Town Code changes by June 2025 Funding Source None required Quantified Objective Zoning Code amendment to reduce parking standards Performance Metric(s) Zoning Code amendment AJAB Allow for 100 Percent Affordable Residential Development in Mixed-Use General Plan Designations Amend the General Plan and the Municipal Code to allow for 100 percent affordable residential development without the requirement of commercial uses. Implementation HE-3.1 Regulatory Incentives for Affordable Housing Responsible Department/Review Authority Community Development Department Timeframe Implement General Plan and Municipal Code changes by June 2024 Funding Source This Page Intentionally Left Blank 10. Housing Element JanuaryFebruaryNovemberSeptember March 2023 2024 HCD Draft Revised Draft 2023-2031 Housing Element 10-77 Programs Establish a list by December 31, 2024, to post online. Funding Source General fund (staff time) Quantified Objective Annually update the list or upon request from a local union. Performance Metric(s) N/A AY Housing Mobility Housing mobility strategies consist of removing barriers to housing in areas of opportunity and strategically enhancing access (Los Gatos is entirely highest resource in terms of access to opportunity and a concentrated area of affluence). To improve housing mobility and promote more housing choices and affordability townwide, including in lower density neighborhoods, the Town will employ a suite of actions to expand housing opportunities affordable to extremely low, very low-, low-, and moderate-income households. Actions and strategies include: SB 9 – Monitor the Town’s SB 9 standards and amend standards to facilitate SB 9 applications (e.g., duplexes in single-family zones) if the Town is not on track to meet its SB 9 application goals during the planning period. See Program AV. Rezoning for Small Multi-Unit Housing, “Missing Middle” – Modify the Zoning Code to facilitate small multi-unit housing in certain the low and to medium density designations. This includes creating mixed residential neighborhoods through new and innovative housing types that meet the changing needs of Los Gatos households and expand housing choices in a variety of neighborhoods. Housing types include, but are not limited to single dwelling units, multifamily dwelling units, accessory dwelling units, small and micro units, use of prefabricated homes, and clustered/cottage housing. This zoning will occur in Implementation Policy HE-1.5 Variety of Housing Choices Policy HE-1.7 Infill Opportunities in Single-Family Neighborhoods Responsible Department/Review Authority Community Development Department Timeframe Annually review overall progress and effectiveness in April and include information in annual report to HCD. If the Town is not on track to meet its 160 affordable housing unit goal for the 8-year RHNA cycle by 2027 (i.e., 80 affordable units built or in process by 2027), the Town will consider alternative land use strategies and make necessary amendments to zoning or other land use documents to facilitate a variety of housing choices, including but not limited to, strategies that encourage missing middle zoning (small-scale multi-unit projects), adaptive reuse, and allowing additional ADUs and/or JADUs, within six months, if sufficient progress toward this quantified objective is not being met. Funding Source General fund (staff time) Quantified Objective Provide 160 housing opportunities affordable to lower income households by January 2031. Performance Metric(s) Townwide, but especially lower-density neighborhoods. HCD Revised Draft Revised 2023-2031 Housing Element 10-78 HCD Revised Draft Revised 2023-2031 Housing Element MarchSeptemberNovemberJanuary February 20232024 Programs avariety of areas throughout the Town but NOT in areas which are in Very High Fire Hazard Severity Zones, historic districts, adjacent to home in our historic inventory (currently pre- 1941) homes, in hillside residential zones, within 500 feet of an evacuation route and within a half mile of a transit stop. The modification of the Zoning Code to facilitate small multi-unit housing will occur in a variety of areas throughout the Town, but in no event in any of the following areas or locations, Very High Fire Hazard Severity Zones, historic districts, adjacent to homes in our historic inventory (currently pre- 1941 homes), hillside residential zones, within 500 feet of an evacuation route, or farther than one half mile of a transit stop. See Program J.  Housing on Town Sites – Enter into a public-private partnership to develop housing, targeting low-income households, on Town owned properties. See Program E.  Enhanced Inclusionary Housing – Assess and amend the Town’s inclusionary housing requirements to better produce low-income units and units for special needs groups townwide. See Program L.  Accessory Dwelling Units (ADUs) – Encourage and streamline ADUs in single-family neighborhoods by preparing standardized ADU plans with a variety of unit sizes and by affirmatively marketing and outreach to increase awareness and the diversity of individuals residing in Los Gatos. See Program Q.  Junior ADUs – Develop and adopt objective standards to allow more than one (at minimum two) Junior ADU per structure by July 2025. The objective is to achieve at least 10 JADUs in lower-density neighborhoods by January 2031. See Program Q.  Religious Institutional Sites – Expand housing opportunities on all religious institutional sites within the Town. See Program S. Conduct outreach to 10. Housing Element JanuaryFebruaryNovemberSeptember March 2023 2024 HCD Draft Revised Draft 2023-2031 Housing Element 10-79 Programs owners and operators of religious institutions to raise awareness and encourage housing proposals. Increase affordable housing on religious institution/faith-based site(s) during the 2023-2031 planning period by 25 units. If no application for housing on a religious institution/faith- based site is received by December 2025, the Town will expand outreach efforts to be conducted annually. This may include direct mailings to faith-based sites highlighting successful affordable housing units on other faith-based sites, as well as available Town resources and programs to support such projects (e.g., Programs N, P, T, AI, AJ – Assist in securing funding for affordable housing projects). Homesharing – Research and pursue a homesharing program, including coordination with non-profits and others to assist at least 50 homeowners in renting out available ADUs and JADUs with with matching tenants with existing homeowners. The Town will publicize and take other actions as necessary (e.g., facilitate presentations at the Los Gatos Adult Recreation Center, etc.) at least annually with the goal of five opportunities per year. See Program T. This Page Intentionally Left Blank Appendix A. AFFH Report JanuaryFebruaryNovemberSeptemberMarch 20232024Appendix A A-19 Past priorities for single-family residential land uses through planning and zoning efforts as well as historical restrictive covenants have contributed to the prevalence of RCAAs in the Town. The Town will use “Affirmative Marketing” strategies, as described in Implementation Program AT BI, to work with affordable and market rate housing developers to ensure that affordable housing is affirmatively marketed to households with disproportionate housing needs, including Hispanic and Black households who work in and live outside of Los Gatos (e.g., materials in Spanish and English, distributed through employers). The Town will also amend its Zoning Ordinance in order to increase the development of affordable housing. The adoption of the North Forty Specific Plan by the Town Council in 2015 provided diversity in the housing stock for the Town. As described in Implementation Program D, the Town will amend the North Forty Specific Plan to allow for an increase in the density from 30 dwelling units per acre to 40 dwelling units per acre and will remove the housing unit cap. Opportunities, including employment, environmental, economic, and housing may not be accessible to all residents, especially those in vulnerable populations. In addition to Program AT described above, Los Gatos will implement programs to facilitate the development of affordable housing, including special needs housing, to increase housing opportunities in the Town (Programs D, E, L, N, O, W). The Town will also serve vulnerable populations through Senior Housing Resources (Program I), Housing Opportunities for the Homeless (Program U), Assistance for Persons with Developmental Challenges (Program V), and Supportive Services for the Homeless (Program Y). The Town also aims to increase transportation opportunities for new households through Program AF, Transit Oriented Development. In addition to actions to facilitate new affordable housing opportunities described previously, the Town has outlined place-based strategies for neighborhood improvement with the following metrics to develop better access to opportunities (environmental, housing, etc.). Specifically, the Town will complete three minor home repairs or accessibility improvements for lower income households annually, provide rehabilitation to five low-income homeowner units annually, and complete three projects related to public facilities and transportation infrastructure. Fair Housing Issue Los Gatos feeds to high performing schools, yet, except for Asian students, students of color cannot take advantage of these learning opportunities because they cannot afford to live in Los Gatos. Priority Level: LowHigh Contributing factors: Lack of affordable housing overall due to high land costs, high construction costs, limited availability of land, limited availability of financing, duration of permitting process, cost of permitting process, and lack of incentives. The Town will address this issue by allocating a percentage of the Town’s Affordable Housing (Below Market Program) Fund to subsidize housing for extremely low-income households and by including housing development sites on the Sites Inventory in all areas of Town. The Town aims to increase BMP units by five units annually in addition to other actions to facilitate affordable housing development outlined in this Housing Element. This Page Intentionally Left Blank Appendix C. Governmental and Non-Governmental Constraints FebruaryJanuaryNovember September March 20232024Appendix C C-1 Town’s Consulting Traffic Consultant Santa Clara Valley Water District County of Santa Clara – Health Department 4. Story Poles and Public Hearing Notices: Once a project is deemed complete the story poles and netting and project sign shall be installed prior to the neighborhood notification process and shall remain in place until the project has been acted upon and the appeal period has ended. Public notices will not be mailed and/or application(s) shall not be advertised until a Story Pole Plan has been approved by the project planner, the story poles and netting have been installed, and photographs have been submitted to the project planner. A licensed surveyor or civil engineer shall submit written verification that the height and position of the poles and netting accurately represents the height and location of the proposed structure(s) or addition. Public hearing notices will be sent out once the story poles process is complete. Public notices are sent out to property owners and tenants within 500 feet of the subject property for hillside zoned properties and 300 feet for non-hillside zoned properties. 5. Public Hearings: If a discretionary application is determined to require a public hearing, Division 7 of Chapter 29 of the Town Code assigns which hearing body has the authority to issue decisions for development applications. There are three types of public hearing bodies in the Town: Development Review Committee (DRC); Planning Commission (PC); and Town Council (TC). Development Review Committee The DRC consists of the following departments: Community Development (Planning and Building Divisions), Parks and Public Works, and Santa Clara County Fire. The Santa Clara County Environmental Health Department is also part of the DRC when certain matters require its input. The DRC has the authority to approve certain applications pursuant to Town Code and/or standards, that require no change in the General Plan or Zoning Code, meet the Zoning Code regulations, and meet the Residential Design Guidelines and/or Hillside Development Standard and Guidelines. DRC meetings are held every Tuesday at 10:00 a.m. in the Town Council Chambers, located in the lower level of Town Hall. Applicants are sent a copy of the DRC agenda. The applicant and/or representative is required to be present, and members of the public are welcome to attend and participate. If any applicant or an interested person as defined by the Town Code, wishes to appeal an action or decision of the DRC, such appeal must be made in writing with the required fee, to the Community Development Department within 10 calendar days of the DRC’s action or decision. The matter will then be set for hearing on the next available Planning Commission agenda. Planning Commission The PC consists of seven residents of the Town of Los Gatos, appointed to serve a four-year term. Upon appointment, Planning Commissioners must demonstrate knowledge of the Town Code and its land use and planning policies. The PC has the authority to approve certain applications pursuant to Town Code and/or standards. The PC performs duties and exercises power and authority with regard to planning, subdivisions, zoning, zoning administration, and other land use regulatory controls as prescribed by ordinance and Sstate law. The PC reviews projects that require variances or exceptions from Town Code, projects that request exceptions from the Town Design standards, projects requiring Conditional Use Permits, hillside development applications depending on the scope of work, and appeals from the DRC. The Planning Commission is the deciding body for all types of projects which propose multi-family residential or mixed- use project. From: Jauregui, Jose @HCD <> Sent: Monday, February 26, 2024 10:46 AM To: Erin Walters <EWalters@losgatosca.gov>; Veronica Tam <>; McDougall, Paul@HCD <> Cc: Laurel Prevetti <LPrevetti@losgatosca.gov>; Gabrielle Whelan <GWhelan@losgatosca.gov>; Joel Paulson <jpaulson@losgatosca.gov>; Jennifer Armer <JArmer@losgatosca.gov>; Jocelyn Shoopman <jshoopman@losgatosca.gov> Subject: RE: Los Gatos HE Revisions [EXTERNAL SENDER] Sounds good, thank you in advance for sending the zoom link! Warm regards, Jose A. Jauregui he / him Housing Policy Analyst Housing Policy Development Housing & Community Development 2020 W. El Camino Avenue, Suite 500 | Sacramento, CA 95833 From: Erin Walters <EWalters@losgatosca.gov> Sent: Monday, February 26, 2024 10:41 AM To: Veronica Tam >; Jauregui, Jose @HCD <>; McDougall, Paul@HCD <> Cc: Laurel Prevetti <LPrevetti@losgatosca.gov>; Gabrielle Whelan <GWhelan@losgatosca.gov>; Joel Paulson <jpaulson@losgatosca.gov>; Jennifer Armer <JArmer@losgatosca.gov>; Jocelyn Shoopman <jshoopman@losgatosca.gov> Subject: RE: Los Gatos HE Revisions Hello Jose, Thank you for your response. Staff and Veronica are available to meet on Friday, March 1st at 10:30am via Zoom. Our team will send you and Paul a Zoom invite for Friday. We would like to have a live editing meeting where we can share with you the Town’s approach to addressing the preliminary review matrix comments. Sincerely, Erin Walters ● Associate Planner Community Development Department ● 110 E. Main Street, Los Gatos CA 95030 Ph: 408.354.6867 ● 408-354-6872 www.losgatosca.gov [losgatosca.gov] ● ewalters@losgatosca.gov ATTACHMENT 21 COMMUNITY DEVELOPMENT HOURS: Counter Hours: 8:00 AM – 1:00 PM, Monday – Friday Phone Hours: 8:00 AM – 5:00 PM, Monday – Friday All permit submittals are to be done online via our Citfzen’s Portal platiorm. All other services can be completed at the counter. For more informatfon on permit submittal, resubmittal, and issuance, please visit the Building [losgatosca.gov] and Planning [losgatosca.gov] webpages. [losgatosca.gov] General Plan update, learn more at https://www.losgatosca.gov/GeneralPlan [losgatosca.gov] [losgatosca.gov] Housing Element update, learn more at www.losgatosca.gov/HousingElement [losgatosca.gov] CONFIDENTIALITY DISCLAIMER This e-mail is intended only for the use of the individual(s) named in this e-mail. If you receive this e-mail and are not a named recipient, any use, dissemination, distribution or copying of the e-mail is strictly prohibited. If you have received this communication in error, please immediately notify us at the above e-mail address.  Think Green, please consider the environment before printing this e-mail. From: Veronica Tam <> Sent: Monday, February 26, 2024 10:32 AM To: Jauregui, Jose @HCD <>; Erin Walters <EWalters@losgatosca.gov>; McDougall, Paul@HCD <> Cc: Laurel Prevetti <LPrevetti@losgatosca.gov>; Gabrielle Whelan <GWhelan@losgatosca.gov>; Joel Paulson <jpaulson@losgatosca.gov>; Jennifer Armer <JArmer@losgatosca.gov>; Jocelyn Shoopman <jshoopman@losgatosca.gov> Subject: RE: Los Gatos HE Revisions [EXTERNAL SENDER] Hi all – For me – The earliest I can do on Friday is 10:30 but I would say take whatever slot is available. We really would like to get this to the finish line. Veronica Veronica Tam, AICP Principal Veronica Tam and Associates, Inc. From: Jauregui, Jose @HCD <> Sent: Monday, February 26, 2024 10:29 AM To: Erin Walters <EWalters@losgatosca.gov>; McDougall, Paul@HCD <> Cc: Veronica Tam <>; Laurel Prevetti <LPrevetti@losgatosca.gov>; Gabrielle Whelan <GWhelan@losgatosca.gov>; Joel Paulson <jpaulson@losgatosca.gov>; Jennifer Armer <JArmer@losgatosca.gov>; Jocelyn Shoopman <jshoopman@losgatosca.gov> Subject: RE: Los Gatos HE Revisions Hello Erin, We are both pretty booked for the week, and our earliest availability would be this Friday at 10 am. Warm regards, Jose A. Jauregui he / him Housing Policy Analyst Housing Policy Development Housing & Community Development 2020 W. El Camino Avenue, Suite 500 | Sacramento, CA 95833 [twitter.com] [facebook.com] [landlordtenant.dre.ca.gov] From: Erin Walters <EWalters@losgatosca.gov> Sent: Thursday, February 22, 2024 1:06 PM To: Jauregui, Jose @HCD <>; McDougall, Paul@HCD Cc: veronica.tam@vtaplanning.com; Laurel Prevetti <LPrevetti@losgatosca.gov>; Gabrielle Whelan <GWhelan@losgatosca.gov>; Joel Paulson <jpaulson@losgatosca.gov>; Jennifer Armer <JArmer@losgatosca.gov>; Jocelyn Shoopman <jshoopman@losgatosca.gov> Subject: RE: Los Gatos HE Revisions Hello Jose, Thank you for providing the preliminary review on the informal revisions submitted. Staff and Veronica Tam would like to schedule a meeting with both you and Paul McDougall to discuss the preliminary review matrix. Staff will be meeting with our Town Council on March 5th to discuss the preliminary review matrix. We would like to meet with you and Paul McDougall prior to returning to Town Council. Please confirm that you have received this email and respond with your availability. Sincerely, Erin Walters ● Associate Planner Community Development Department ● 110 E. Main Street, Los Gatos CA 95030 Ph: 408.354.6867 ● 408-354-6872 www.losgatosca.gov [losgatosca.gov] ● ewalters@losgatosca.gov COMMUNITY DEVELOPMENT HOURS: Counter Hours: 8:00 AM – 1:00 PM, Monday – Friday Phone Hours: 8:00 AM – 5:00 PM, Monday – Friday All permit submittals are to be done online via our Citfzen’s Portal platiorm. All other services can be completed at the counter. For more informatfon on permit submittal, resubmittal, and issuance, please visit the Building [losgatosca.gov] and Planning [losgatosca.gov] webpages. [losgatosca.gov] General Plan update, learn more at https://www.losgatosca.gov/GeneralPlan [losgatosca.gov] [losgatosca.gov] Housing Element update, learn more at www.losgatosca.gov/HousingElement [losgatosca.gov] CONFIDENTIALITY DISCLAIMER This e-mail is intended only for the use of the individual(s) named in this e-mail. If you receive this e-mail and are not a named recipient, any use, dissemination, distribution or copying of the e-mail is strictly prohibited. If you have received this communication in error, please immediately notify us at the above e-mail address. Think Green, please consider the environment before printing this e-mail. From: Jauregui, Jose @HCD Sent: Tuesday, February 20, 2024 2:05 PM To: Veronica Tam >; McDougall, Paul@HCD <> Cc: Jennifer Armer <JArmer@losgatosca.gov>; Erin Walters <EWalters@losgatosca.gov> Subject: RE: Los Gatos HE Revisions [EXTERNAL SENDER] Hello Veronica, Please see the preliminary review on the informal revisions submitted. Warm regards, Jose A. Jauregui he / him Housing Policy Analyst Housing Policy Development Housing & Community Development 2020 W. El Camino Avenue, Suite 500 | Sacramento, CA 95833 [twitter.com] [facebook.com] [landlordtenant.dre.ca.gov] Town of Los Gatos Informal 2 Preliminary Review Received 12/24/2023 Subsequent Informal 2: 2/01/24 Prior Review: 12/01/2023 Prior HCD Finding Page # Prelim Rev 1 Page# Prelim Rev 2 Notes Affirmatively Furthering Fair Housing Income and Racial Concentration Area of Affluence (RCAA): 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) to better formulate appropriate policies and programs. 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. A-69 ~/No A-71 Yes/~ Minimal revision. Prior Review: Minimal analysis added; should address trends, coincidence with other factors (e.g., income, TCAC), past strategies and effectiveness such as result of North 40 in the prior planning period, zoning, land use and other factors. These analyses should be incorporated into contributing factors Contributing Factors to Fair Housing Issues: Based on a complete analysis, the element should re-assess and prioritize contributing factors to fair housing issues. For example, the Town is wholly a RCAA, highest resource and highest median incomes in contrast to the rest of the region. As a result, fair housing issues such as the lack of affordable housing and segregation from the rest of the region should be a high priority. A-18 ~ A20 Yes Re-assess based on a complete analysis Goals and Actions: As noted above, the element must include a complete analysis of affirmatively furthering fair housing (AFFH). The element must be revised to add goals and actions based on the outcomes of a complete analysis. 10-43- 10-50- 10-65 10-66 ~/No 10-76 ~ Include metric for home sharing action (Program Q) In addition, while the element includes some actions toward AFFH and enhancing housing mobility (e.g., choices and affordability), actions should be added, numeric targets should be increased, and geographic targeting should be fine-tuned to better promote inclusive neighborhoods throughout the Town. This is particularly important since over 80 percent of the lower-income regional housing need allocation (RHNA) is isolated in two census tracts. As noted in HCD’s prior review and the assessment of fair housing, the Town is wholly a racially concentrated area of affluence, highest resource and highest median incomes in contrast to the rest of the region. These conditions and circumstances warrant significant and robust actions (not limited to the RHNA) to promote housing mobility and increasing housing choices and affordability throughout the Town, including lower-density neighborhoods. Actions should be added and revised with aggressive numeric targets and geographic targets throughout the Town, including lower-density neighborhoods. Examples include creating more housing choices and affordability in single-family neighborhoods beyond complying with law (e.g., SB 9, ADUs) such as missing middle housing types, targeting affordable housing funding, homesharing, more than one unit of converted space within a single-family structure, increased multifamily capacity, enhanced efforts on religious institutional sites and other alternative land use and financing strategies. Program AY Prior Review: See Programs J, L, O, Q, T, AV Program J should clarify that capacity will be increased (not just zoning text), development standards will be adjusted to facilitate maximum densities and increase the objective (~150 units) or add strategies (religious institutional, JADU plus, SB 10) Consider adding JADU plus to ADU HCV homesharing program and increasing objective Program AV should go beyond complying with SB 9 (marketing, modification to development standards) For all housing mobility actions (Programs J, L, O, Q, T, AV), geographic targeting should be revised to clarify town-wide including highest median income areas and numeric targets should be reflected with geographic targeting (e.g., 100 units townwide and 50% in highest median income areas) Sites Inventory, Analysis and Adequate Sites Small Sites: The element identifies several sites with parcels less than a half-acre (p. D-13) that have common ownership and, in some cases, expressed interest to redevelop the site. D-2 Yes D-11 N/A For small sites with expressed interest in redevelopment, the element should clarify that the expressed interest is also in consolidating the sites. For the remaining sites (Sites D-2 and D-5), the element should explain the circumstances leading to the potential for consolidation such as necessity to consolidate due to access, feasibility, shape, or site planning flexibility. Based on the outcomes of this analysis, the element should add or modify Program K (Lot Consolidation) to further promote lot consolidation, if appropriate. Electronic Sites Inventory: For your information, while the Town has submitted an electronic sites inventory as part of this submittal, pursuant to Government Code section 65583.3, the Town must submit an electronic sites inventory with its adopted housing element. Please see HCD’s housing element webpage at https://www.hcd.ca.gov/planning-andcommunity- development/housing-elements for a copy of the form and instructions. The Town can reach out to HCD at sitesinventory@hcd.ca.gov for technical assistance N/A FYI FYI Adequate Sites Programs: As noted in the prior review, if necessary to make appropriate zoning available to accommodate the lower-income RHNA, programs must be revised to meet all requirements pursuant to Government Code section 65583.2, subdivisions (c), (h) and (i). The element includes Programs D (Program By Right Zoning Text Amendment to Accommodate RHNA), AR (General Plan Amendment) and AS (Adequate Sites for Housing) to address these requirements. With respect to sites identified in prior planning periods, the element meets statutory requirements, but these actions must be completed by January 31, 2024. With respect to a shortfall of adequate sites to accommodate the lower-income RHNA, the element includes Programs AR and AS. However, the Programs commit to the appropriate zoning given the rezoning occurs after the statutory deadline of January 31, 2023. HCD understands the Town completed the rezoning after the statutory deadline and, therefore, the rezoning must meet all by right requirements pursuant to Government Code section 65583.2, subdivisions (h) and (i). Based on a cursory review, the rezoning does not appear to meet these requirements. As a result, these programs must Not Found No/? Yes Rezone ordinance 2347, Ord 2348, Ord 2349, Ord 23507; clearly commit to meet all by-right requirements by January 31, 2024. In addition, please be aware, the recent California appellate decision in Martinez v. City of Clovis found that while overlays can be used in a rezone, when the base zone allows residential development, both the base zone and the overlay zone must comply with the minimum density requirements of Government Code section 65583.2, subdivision (h). The Town may need to adjust its rezoning strategy if the underlying zoning for sites that will be rezoned allows minimum densities less than 20 dwelling units per acre. Martinez v. City of Clovis (2023) 90 Cal.App.5th 193, 307 Cal.Rptr.3d 64. Governmental Constraints Land Use Controls: HCD’s prior review found that the Town must list and evaluate development standards in the North Forty Specific Plan and High Density Residential and Commercial designation. In response, the Town has now listed development standards by each zoning district but should also analyze those development standards for impacts on housing supply and cost and most importantly, the ability to encourage maximum densities without exceptions. For example, lot coverages, heights, and setbacks in the Multifamily Residential (RM) zone; and lot coverage heights and guest parking requirements in the North Forty Specific Plan could be constraints. Based on the outcomes of a complete analysis, the element should add or modify programs to include specific commitment to review and revise these development standards as necessary. C-1 C-5 10-62 ? 10-43 No Program D includes action to remove guest parking in North Forty Specific plan; however, include a program to revise all MF guest parking requirements, specifically RM, CH zones. Prior Review: RM parking program? Guest parking reduced? Guest parking and lot coverage in the North Forty Specific Plan analyzed? Local Processing and Permit Procedures: The element now discusses decision-making bodies and lists approval findings for the Architecture and Site Application. However, the element should also analyze these processes to better inform programs to address identified constraint. For example, the element mentions the decision-making body depends on the scope of the application. The element should explain the scope, resulting decision-making body and impacts on 10-62 No/? C-41 ~ Brief statement made on approval body but must discuss and analyze the scope of the trigger for PC review. Program AQ Prior Review: See Program AQ approval timing and certainty. In addition, the element lists approval findings and concludes some findings may be constraints then modifies Program AQ (Zoning Code Amendments) to amend approval findings (considerations). But the element should discuss which approval findings may be constraints to better inform implementation of Program AQ. Program should remove or modify Findings 4 and 6 of the architectural and site process Scope trigger for approval body analyzed? Addressed? Programs: As noted above, 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. In addition, programs should be revised, as follows: TBD TBD Depends on complete analysis Program D (Additional Capacity for the North Forty Specific Plan): The Program should also commit to establish or modify development standards to facilitate achieving maximum densities, regardless of the level of affordability and should specify to either remove the unit cap or increase the unit cap to allow maximum build out of each parcel, including State Density Bonus Law or other circumstances that might warrant increasing allowable densities. 10-41 ~/No/? No Include a specific commitment to increase or remove unit cap (within 6 months) Prior Review: No action included to modify development standards? No action to remove cap. Commitments should also not implement the cap to allow maximum build out of each parcel or other circumstances warranting increasing allowable densities Program V (Housing opportunities for Persons living with Disabilities): Given the importance of promoting housing access for persons with disabilities, the Program could be modified with a date earlier in the planning period (e.g., by December 2024). ? No/? 10-57 Yes Program AA (Reduce Parking Standards): The Program currently commits to “Initiate a study to determine specific updates…” While initiating a study and making a determination are important steps by themselves, these actions do not result in outcomes. The Program should clearly commit to amending the municipal code. For example, the 10-53 Yes N/A Program could commit to: “Initiate a study and outreach, including with developers, and amend the Municipal Code, as follows:…” Program AQ (Zoning Code Amendments): The Program commits to apply the Housing Element Overlay Zone (HEOZ) to identified sites and modify development standards. HCD understands this action has been completed. Based on a cursory review of the Town’s Ordinance 2347, some development standards such as heights may be a constraint on achieving maximum densities. As a result, this Program should commit to monitor and evaluate these development standards, including outreach with the development community, and making adjustments, as appropriate, by a specified date. 10-61 ~/No 10-70 Yes Program AQ Program AW (Story Poles and Netting Policy): While the Program now commits to revise Story Poles and Netting Policy Requirements; these requirements are constraints and impact housing costs; supply (number of units) and approval certainty and should be removed or replaced with cost effective measures to promote certainty for the developers and the community. Further, the element should evaluate the effectiveness of any future requirements or measures, and making adjustments, as necessary, by a specified date (e.g., by 2028). 10-65- No C-38 Yes Program AW Prior Review: Video rendering should be expanded to other visual methods Scope of alternative should be expanded to all multifamily and mixed use Housing Programs: ADU Program Q Accessory Dwelling Units (ADU): While the Program now commits to amend the ADU Ordinance, it must also commit to establish incentives such as modifying development standards (e.g., heights), pursuing funding; waiving fees beyond ADU law; proactive marketing and establishing points of contact to ease permitting processes. In addition, the Program commits to monitor production and affordability of ADUs annually but should also commit to making adjustments by a specified date (e.g., within six months) if production and affordability are not meeting assumptions. Further, the Program should clearly commit to options beyond incentives such as rezoning if production and affordability far differs from assumptions. 10-48- Yes N/A Public Participation: 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 should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate. Please be 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. HCD particularly encourages the Town to continue engaging commenters on this review. These comments contained valuable insights that can result in a more effective housing elements, especially related to programs and specific commitment. HCD’s future reviews will continue to consider the extent to which the revised element documents how the Town solicited, considered, and addressed public comments in the element. The Town’s consideration of public comments must not be limited by HCD’s findings in this review letter. ? 10-17 Yes/~ Summary of Public comments submitted. Other (HCD use only) Program J N/A No New language excluding missing middle housing types in multiple areas throughout the Town. The program should remove new language and proceed with previous program language informally reviewed. Program AY N/A No See comments above. Sb 9 units N/A 10-9 D-2 No/? Is the town now counting SB 9 units towards RHNA? Table D-2? Public comments TBD Yes Additional comments? Prior Review: Must address new public comments Document availability FYI FYI Rezone timing FYI FYI Cant be found in full compliance until all rezones are complete 50% nonvacant resolution FYI FYI Electronic sites inventory FYI FYI Overlay No Program AQ HE Overlay zone Modification Authority N/A N/A Informal submittal This Page Intentionally Left Blank