Staff Report with Attachments 1 through 3.HE Implementation Program AB
PREPARED BY: Ryan Safty
Associate Planner
Reviewed by: Community Development Director, Planning Manager, and Town Attorney
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6872
www.losgatosca.gov
TOWN OF LOS GATOS
PLANNING COMMISSION
REPORT
MEETING DATE: 02/12/2025
ITEM NO: 2
DATE: February 7, 2025
TO: General Plan Committee
FROM: Joel Paulson, Community Development Director
SUBJECT: Consider Forwarding a Recommendation to the Planning Commission to
Amend the General Plan to Allow 100 Percent Affordable Housing Projects as
a By-Right Use in the Mixed-Use Commercial General Plan Land Use
Designation and Amend Chapter 29 (Zoning Regulations) of the Town Code to
Add 100 Percent Affordable Housing Projects as a Permitted Use in the
Restricted Commercial Highway (CH) Zone Pursuant to Implementation
Program AB of the 2023-2031 Housing Element. Adoption of this Resolution
and Ordinance are Exempt Pursuant to CEQA, Section 15061(b)(3) in that it
Can be Seen with Certainty that they Will Not Impact the Environment.
General Plan Amendment Application GP-24-004 and Zoning Code
Amendment Application A-24-010. Project Location: Town Wide. Applicant:
Town of Los Gatos. Project Planner: Ryan Safty.
RECOMMENDATION:
Consider forwarding a recommendation to the Planning Commission to amend the General Plan
to allow 100 percent affordable housing projects as a by-right use in the Mixed-Use Commercial
General Plan Land Use Designation and amend Chapter 29 (Zoning Regulations) of the Town
Code to add 100 percent affordable housing projects as a permitted use in the Restricted
Commercial Highway (CH) Zone pursuant to Implementation Program AB of the 2023-2031
Housing Element.
CEQA:
Adoption of this ordinance and resolution are exempt pursuant to California Environmental
Quality Act (CEQA) Guidelines Section 15061(b)(3), because it can be seen with certainty that
they will not significantly affect the physical environment in that they allow affordable housing
as a permitted use in the Mixed-Use Commercial General Plan Land Use Designation and CH
zone and residential uses are already allowed in the Mixed-Use Commercial General Plan Land
PAGE 2 of 3
SUBJECT: Housing Element Overlay Zone/A-24-010 and GP-24-004
DATE: February 7, 2025
Use Designation with a mixed-use project and residential uses are already allowed with a
Conditional Use Permit in the CH zone as a part of a mixed-use project.
BACKGROUND:
With certification of the 2023-2031 Housing Element, the Town committed to completing the
Implementation Programs contained in the Housing Element. The Town is required to report
the progress made on the Housing Element Implementation Programs to the California
Department of Housing and Community Development (HCD) to demonstrate compliance with
the Housing Element and maintain its certification. Implementation Program AB of the Housing
Element requires amendments to the Mixed-Use Commercial Land Use Designation of the
General Plan and the CH zone (Chapter 29 of Town Code) to allow for 100 percent affordable
residential development in these areas without the need of a commercial component within
the Mixed-Use General Plan Land Use Designation and CH zone (Attachment 1). Specifically,
Implementation Program AB states the following:
▪ Amend the General Plan and the Municipal Code to allow for 100 percent affordable
residential development without the requirement of commercial uses.
The role of the General Plan Committee (GPC) is to assist the Planning Commission and Town
Council on matters relating to the General Plan or any specific plans. As a legislative item, the
Planning Commission will make a recommendation to Town Council on the proposed
amendments.
DISCUSSION:
The following is a summary of the required amendments for consideration by the GPC.
A. Mixed-Use Commercial General Plan Land Use Designation
The Mixed-Use Commercial Land Use Designation within the Town of Los Gatos 2020
General Plan Land Use Element currently permits, among other things, a mixture of retail,
office, and residential uses in a mixed-use project. However, a residential use is not
permitted unless associated with a commercial use within a mixed-use project.
Housing Element Implementation Program AB requires amending this Designation to also
allow a standalone residential use when the development would be 100 percent affordable.
The proposed General Plan amendment would affect all Town parcels with a Mixed-Use
Commercial Land Use Designation and is not limited to the properties included in the Sites
Inventory of the Housing Element. Attachment 2 shows the draft amendment to the Mixed-
Use Commercial General Plan Land Use Designation.
PAGE 3 of 3
SUBJECT: Housing Element Overlay Zone/A-24-010 and GP-24-004
DATE: February 7, 2025
B. Restricted Commercial Highway (CH) Zone
Generally speaking, Town properties with a Mixed-Use Commercial General Plan Land Use
Designation are zoned CH, and these properties are located along Los Gatos Boulevard,
north of Shannon Road. According to Town Code Section 29.60.415, “the CH or restricted
highway commercial zone is intended for development of vehicular-oriented activities and
sales along highway frontages, intermingled with compatible retail, service, and
administrative activities.”
Housing Element Implementation Program AB would involve amending Town Code Section
29.60.420 (CH Zone – Permitted Uses), adding “100 percent affordable housing
developments” as a permitted use in the zone. The proposed Town Code amendment
would affect all Town parcels that are zoned CH and is not limited to the properties
included in the Sites Inventory of the Housing Element. Attachment 3 shows the draft
amendment to Town Code Section 29.60.420.
PUBLIC NOTIFICATION:
Public notification included a legal ad in the paper, published on February 7, 2025.
PUBLIC COMMENTS:
As of the drafting of this report, no comments from the public have been received.
CONCLUSION:
The GPC should consider the draft amendments to the 2020 General Plan Land Use Element
and Chapter 29 (Zoning Regulations) of the Town Code regarding 100 percent affordable
residential development in the Mixed-Use Commercial General Plan Land Use Designation and
the CH Zone of the Town Code, and make a recommendation to the Planning Commission.
ATTACHMENTS:
1. Housing Element Implementation Program AB
2. Draft General Plan Amendment
3. Draft Zoning Code Ordinance Amendment
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10. Housing Element
June 4, 2024 2023-2031 Housing Element 10-55
Programs
would result amendments to the Municipal
Code, as follows :
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.
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
AB 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
None required
Quantified Objective
Amend the General Plan and Zoning Code to allow
for 100 percent affordable housing development in
Mixed-Use General Plan designations
Performance Metric(s)
Measure the number of mixed-use units entitled
annually
AC SB 35 Process Improvements
Develop an SB 35 checklist and written
procedures for processing SB 35
applications to ensure efficient and
complete application processing.
Implementation
HE-3.3 Efficient Development Processing
HE-3.1 Regulatory Incentives for Affordable
Housing
Responsible Department/Review Authority
Community Development Department
Timeframe
Implement by December 2023
Funding Source
Staff Time
Quantified Objective
ATTACHMENT 1
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Town of Los Gatos 2020 General Plan ‐ Land Use Element
2.Non‐ResidenƟal Land Use DesignaƟons
For non‐residenƟal land uses, the specific uses menƟoned are illustraƟve, and other compaƟble
uses, including those authorized in any other Zoning District within the Town, may be permiƩed
where authorized by a CondiƟonal Use Permit or Planned Development Overlay Zone. In a
mixed‐use project residenƟal uses may be permiƩed in conjuncƟon with other permiƩed uses
in non‐residenƟal Zoning Districts with the excepƟon of the Commercial Industrial and
Controlled Manufacturing Zoning Districts. For non‐residenƟal land uses, building intensity
limits are indicated by either allowable land coverage or floor area raƟo (FAR) and a maximum
height limit.
[…]
Mixed‐Use Commercial: Up to 50 percent land coverage with a 35‐foot height limit
The Mixed‐Use Commercial designaƟon permits a mixture of retail, office, and residenƟal in
a mixed‐use project, along with lodging, service, auto‐related businesses, non‐
manufacturing industrial uses, recreaƟonal uses, and restaurants,. and 100 percent
affordable housing developments. Projects developed under this designaƟon shall maintain
the smalltown, residenƟal scale and natural environments of adjacent residenƟal
neighborhoods, as well as provide prime orientaƟon to arterial street frontages and proper
transiƟons and buffers to adjacent residenƟal properƟes. This designaƟon should never be
interpreted to allow development of independent commercial faciliƟes with principal
frontage on the side streets.
[…]
ATTACHMENT 2
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DIVISION 5. ‐ CH OR RESTRICTED HIGHWAY COMMERCIAL ZONE
[…]
Sec. 29.60.420. ‐ PermiƩed uses.
(a)AcƟviƟes allowed in the CH or restricted highway commercial zone are those which do not
unreasonably interfere with nearby residenƟal uses and which are in the following categories:
(1)Retailing, including formula retail up to ten thousand (10,000) square feet.
(2)Personal service businesses and service businesses necessary for the conduct of households.
(3)Office acƟviƟes.
(4)Limited manufacturing acƟviƟes when a majority of sales are made on site to the ulƟmate
consumer.
(5)Group classes.
(6)Specialty food retail without alcoholic beverages.
(7)100 percent affordable housing developments.
(b)Examples of proper CH acƟviƟes are grocery stores, laundereƩes or dry‐cleaning agencies,
drugstores, barbershops, appliance repair shops, and offices. Examples of acƟviƟes which are
not proper in the CH zone are palmists and soothsayers, manufacturing, wholesaling, or laundry
or dry‐cleaning plants.
[…]
ATTACHMENT 3
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