Staff Report.Replacement Housing
PREPARED BY: Gabrielle Whelan
Town Attorney
Reviewed by: Planning Manager and Community Development Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6872
www.losgatosca.gov
TOWN OF LOS GATOS
PLANNING COMMISSION
REPORT
MEETING DATE: 11/13/2024
ITEM NO: 8
DATE: November 8, 2024
TO: Planning Commission
FROM: Gabrielle Whelan, Town Attorney
SUBJECT: Make a Recommendation to the Town Council on Adoption of a Replacement
Units Ordinance and Adoption of a Resolution Adopting Replacement Units
Guidelines, Pursuant to Implementation Program AU of the 2023-2031
Housing Element. Adoption of this Ordinance is Exempt Pursuant to CEQA,
Section 15061(b)(3) in that it can be Seen with Certainty that it will not
Impact the Environment, Because the Town is Already Subject to State Law.
Town Code Amendment Application A-24-007. Project Location: Town Wide.
Applicant: Town of Los Gatos.
RECOMMENDATION:
Forward a recommendation to the Town Council regarding adopting a Replacement Units
Ordinance and adopting Replacement Units Guidelines by resolution, pursuant to
Implementation Program AU of the 2023-2031 Housing Element.
CEQA:
Adoption of this Ordinance is exempt pursuant to CEQA, Section 15061(b)(3) in that it can be
seen with certainty that it will not impact the environment, because the Town is already subject
to state law.
BACKGROUND:
Implementation Program AU of the Town’s certified 2023-2031 Housing Element states that the
Town will adopt a policy requiring replacement housing units in specified instances. State law
does not require an ordinance, but some grant programs do require an ordinance. For that
reason, staff is recommending that the Town adopt its replacement units requirements in a
codified ordinance. The purpose of adopting a Replacement Units Ordinance is to insure that,
when housing units are removed by a development project, those housing units get repl aced. In
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SUBJECT: Replacement Units Ordinance and Guidelines
DATE: November 8, 2024
addition, staff is recommending that the Town adopt Replacement Units Guidelines by
resolution. The proposed resolution authorizes staff to update the Guidelines if required by
future changes to state law.
DISCUSSION:
The proposed Ordinance and Guidelines reflect state law requirements. In summary, those
state law requirements are:
1) State Density Bonus Law
Per Government Code Sections 65915-65918, housing developers may receive more
favorable development requirements from cities and towns in exchange for providing
specified percentages of affordable housing with their projects. With regard to replacement
housing units, when a project proposes to demolish existing housing, or where rental
housing existed on the site within the previous five years, the applicant must replace those
units.
2) Housing Element Law
Per Housing Element law (Government Code Section 65583.2(g)(3), whenever a housing
project is proposed on a site listed in the Sites Inventory of the Town’s certified 2023-2031
Housing Element, the Town must determine whether the site contains existing rental
housing or contained rental housing within the past five years . If so, the rental units must be
replaced.
3) Housing Crisis Act of 2019
The existing replacement housing unit requirements of the Housing Crisis Act of 2019 have
been expanded to include nonresidential developments. In addition, displaced, low-income
residents are entitled to relocation benefits and a right of first return.
CONCLUSION:
A. Summary
The proposed Replacement Units Ordinance and Guidelines align with existing state law
requirements and respond to Implementation Program AU of the 2023-2031 certified
Housing Element.
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SUBJECT: Replacement Units Ordinance and Guidelines
DATE: November 8, 2024
B. Recommendation
Staff recommends that the Planning Commission forward a recommendation to the Town
Council for adoption of a Replacement Units Ordinance codifying replacement unit
requirements and Replacement Units Guidelines by resolution. The Planning Commission
should also include any comments or recommended changes to the Ordinance or
Guidelines in taking the following actions:
1. Make the finding that the proposed amendment is exempt pursuant to CEQA, Section
15061(b)(3), in that it can be seen with certainty that it will not impact the environment,
and because the Town is already subject to state law (Exhibit 1);
2. Make the required finding that the amendments to Chapter 29 of the Town Code in the
Draft Ordinance are consistent with the General Plan (Exhibit 1); and
3. Forward a recommendation to the Town Council for adoption of an Ordinance to codify
replacement unit requirements (Exhibit 2) and a resolution adopting Replacement Units
Guidelines (Exhibit 3).
C. Alternatives
Alternatively, the Commission can:
1. Forward a recommendation to the Town Council for adoption of the Ordinance and/or
resolution with modifications; or
2. Forward a recommendation to the Town Council for no changes to the Town Code; or
3. Continue the matter to a date certain with specific direction.
EXHIBITS:
1. Required Findings
2. Proposed Ordinance Codifying Replacement Units Requirement
3. Proposed Resolution Adopting Replacement Units Guidelines with Attachment A
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