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Staff Report with Exhibits 4 through 7.HE Program AB PREPARED BY: Sean Mullin, AICP Planning Manager Reviewed by: Community Development Director 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: 04/09/2025 ITEM NO: 4 DATE: April 4, 2025 TO: Planning Commission FROM: Joel Paulson, Community Development Director SUBJECT: Consider Making a Recommendation to the Town Council to Adopt a Resolution to Amend the General Plan to Allow 100 Percent Affordable Housing Residential Developments as a Permitted Use in the Mixed-Use Commercial General Plan Land Use Designation and Adopt an Ordinance to Amend Chapter 29 (Zoning Regulations) of the Town Code to Add 100 Percent Affordable Residential Developments 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. RECOMMENDATION: Forward a recommendation to the Town Council to adopt a Resolution to amend the General Plan to allow 100 percent affordable residential developments as a permitted use in the Mixed- Use Commercial General Plan Land Use Designation and adopt an Ordinance to amend Chapter 29 (Zoning Regulations) of the Town Code to add 100 percent affordable residential developments as a permitted use in the Restricted Commercial Highway (CH) zone, pursuant to Implementation Program AB of the 2023-2031 Housing Element. CEQA: The proposed amendments to the General Plan and Chapter 29 of the Town Code are not subject to the California Environmental Quality Act ("CEQA") because the amendment being proposed are not a project under CEQA pursuant to Section 21065 of the Public Resources Code and Section 15378 of the State CEQA Guidelines. Additionally, the proposed amendments are exempt from CEQA pursuant to 15061(b)(3) of the CEQA Guidelines because it can be seen with Page 453 PAGE 2 of 7 SUBJECT: 100 Percent Affordable Housing Developments General Plan and Zoning Code Amendments, Implementation Program AB/GP-24-004 and A-24-010 DATE: April 4, 2025 certainty that the action will not have a significant adverse impact on the environment since the proposed amendments to allow 100 percent affordable residential development as a permitted use would occur on lands currently designated and zoned to allow a residential use in a mixed-use development. Finally, any future 100 percent affordable residential developments that include new construction under a discretionary process would be subject to project specific environmental review under CEQA. FINDINGS:  The proposed amendments are not a project under CEQA pursuant to Section 21065 of the Public Resources Code and Section 15378 of the State CEQA Guidelines; are exempt from CEQA pursuant to 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that the action will not have a significant adverse impact on the environment; any future 100 percent affordable residential developments that include new construction under a discretionary process would be subject to project specific environmental review under CEQA; and  The proposed amendments to the General Plan and Chapter 29 of the Town Code are consistent with the General Plan because they would allow a residential use on lands currently designated and zoned to allow a residential use in a mixed-use development of the Town Code. 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 developments as a permitted use. 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. On February 12, 2025, the General Plan Committee (GPC) considered the proposed amendments and forwarded a recommendation to amend the General Plan to allow 100 percent affordable residential developments as a permitted 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 residential developments as a permitted use in the CH zone. Included with the GPC’s recommendation was a request that maps showing where the Page 454 PAGE 3 of 7 SUBJECT: 100 Percent Affordable Housing Developments General Plan and Zoning Code Amendments, Implementation Program AB/GP-24-004 and A-24-010 DATE: April 4, 2025 proposed amendments would be applicable be provided to the Planning Commission and the Town Council, and that a discussion of height allowances under State Density Bonus Law (SDBL) also be provided. The February 12, 2025, GPC staff report and minutes are included as Exhibits 4 and 5. DISCUSSION: Policy HE-3.1 of the 2023-2031 Housing Element, requires the Town to facilitate the development of affordable housing through regulatory incentives and concessions, and/or financial assistance to remove barriers to the production of housing. Consistent with this policy, Implementation Program AB requires amendments to the General Plan and the Town Code to allow for 100 percent affordable residential developments as a permitted use without a commercial component within the Mixed-Use General Plan Land Use Designation and CH zone. The following is a summary of the required amendments for consideration by the Planning Commission. 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 standalone residential use is not permitted unless associated with a commercial use within a mixed- use project. Housing Element Implementation Program AB requires amending the Mixed-Use Commercial Land Use 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. Exhibit 2 provides the draft amendments to the Mixed-Use Commercial General Plan Land Use Designation. Exhibit 6 shows the locations of the Mixed-Use Commercial General Plan Land Use Designation in the Town. Through Implementation Program AB, these are the areas where a 100 percent affordable residential development would be allowed as a permitted use. These areas are concentrated along Los Gatos Boulevard between Blossom Hill Road and Samaritan Drive, and Los Gatos-Saratoga Road at Alberto Way. Page 455 PAGE 4 of 7 SUBJECT: 100 Percent Affordable Housing Developments General Plan and Zoning Code Amendments, Implementation Program AB/GP-24-004 and A-24-010 DATE: April 4, 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 residential 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. Exhibit 3 provides the draft amendments to Town Code Section 29.60.420. Exhibit 7 shows the location of the commercial zones (C-1, C-2, CH, and O) where mixed use developments are allowed with approval of a Conditional Use Permit (CUP). General Plan Committee On February 12, 2025, the GPC considered the proposed amendments and forwarded a recommendation to amend the General Plan to allow 100 percent affordable residential developments as a permitted 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 residential developments as a permitted use in the CH zone. Included with the GPC’s recommendation was a request that maps showing where the proposed amendments would be applicable be provided to the Planning Commission and the Town Council. These maps are included as Exhibits 6 and 7. Additionally, the GPC requested that a discussion of height allowances under SDBL also be provided to the Planning Commission and Town Council. Below is a comparison of the allowances provided for 100 percent affordable residential development submitted under SDBL against other typical projects submitted under SDBL. State Density Bonus Law During discussion by the GPC, questions regarding the allowances provided for 100 percent affordable residential developments under SDBL were provided to staff. The following provides a response to the various questions related to SDBL. Staff notes that there are other state laws meant to incentivize and streamline housing production such as SB 35, AB 2011, and SB 6, but SDBL has been the most commonly used in the Town and is evaluated herein. Page 456 PAGE 5 of 7 SUBJECT: 100 Percent Affordable Housing Developments General Plan and Zoning Code Amendments, Implementation Program AB/GP-24-004 and A-24-010 DATE: April 4, 2025 SDBL created a mechanism to obtain more favorable development requirements for projects with affordable or senior units. To meet the affordable housing goals, developers are entitled to a density bonus that corresponds to specified percentages of units set aside for very-low, low, or moderate-income households. In addition to the density bonus, SDBL provide three provisions that must be granted to qualifying projects: 1. One or more concessions/incentives that provide cost reductions for the development. Under the law, a concession includes a reduction in site development standards and/or regulations when such regulations potentially make the project economically infeasible for the developer to build. These can include a reduction in site development standards or modification of zoning or architectural design requirements that exceed minimum building standards. The number of allowed concessions is determined on a sliding scale based on the percentage of units that will be set aside as affordable units and the household income category of those affordable units. 2. Waivers are reductions or modifications of any development standards and other regulations that would physically preclude the development of a project at the density permitted. Development standards include, but are not limited to, height limitations, setback requirements, FAR, open space requirements, or parking requirement that apply to a residential development pursuant to any ordinance, general plan element, policy, resolution, or regulation. There is no limit in the number of waivers an applicant can request through SDBL. 3. Reductions in parking requirements provided based on the number of bedrooms in each unit. Under SDBL, a 100 percent affordable residential development is provided the following:  A density bonus of 80 percent and, when located within one-half mile of a major transit stop, no limit on density [65915 (f)(3)(D)(i)];  Up to five concessions/incentives [65915 (d)(2)(D)];  Unlimited waivers to development standards [65915 (e)];  A height increase of three additional stories, or 33 feet, when located within one-half mile of a major transit stop [65915 (d)(2)(D)]; and  Reductions in parking requirements based on the number of bedrooms in each unit [65915 (p)(1)] and, when located within one-half mile of a major transit stop, no parking requirement [65915 (p)(3)]. Staff notes that aside from the additional height allowance summarized above, applicants can request waivers from height standards under SDBL. Additionally, Public Resources Code Section 21064.3 defines a major transit stop. Staff has analyzed the definition and determined that there are currently no major transit stops within Town boundaries or within one-half mile of the Town boundary. Page 457 PAGE 6 of 7 SUBJECT: 100 Percent Affordable Housing Developments General Plan and Zoning Code Amendments, Implementation Program AB/GP-24-004 and A-24-010 DATE: April 4, 2025 The following table provides a comparison of projects at different levels of affordability against a 100 percent affordable residential development under SDBL. State Density Bonus Law Comparison 20 Percent Low Income 20 Percent Moderate Income 100 Percent Low Income Density Bonus 35 percent 15 percent 80 percent Concessions/Incentives 2 2 5 Waivers Unlimited Unlimited Unlimited Objective Design Standards The proposed amendments allow for a 100 percent affordable residential development as a permitted use. These amendments would not eliminate the need for other approvals that may be required, such as Architecture and Site or Subdivision approval. If a 100 percent affordable residential development is proposed that requires Architecture and Site approval, the Town’s Objective Design Standards would apply. CEQA DETERMINATION: The proposed amendments are not a project under CEQA pursuant to Section 21065 of the Public Resources Code and Section 15378 of the State CEQA Guidelines; are exempt from CEQA pursuant to 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that the action will not have a significant adverse impact on the environment; any future 100 percent affordable residential developments that include new construction under a discretionary process would be subject to project specific environmental review under CEQA; and CONCLUSION: A. Summary The proposed amendments to the General Plan and Town Code related to 100 percent affordable housing developments respond to Implementation Program AB of the 2023-2031 Housing Element. B. Recommendation Staff recommends that the Planning Commission review the information included in the staff report and forward a recommendation to the Town Council for approval of the proposed amendments to General Plan and Chapter 29 of the Town Code (Exhibit 2). The Page 458 PAGE 7 of 7 SUBJECT: 100 Percent Affordable Housing Developments General Plan and Zoning Code Amendments, Implementation Program AB/GP-24-004 and A-24-010 DATE: April 4, 2025 Planning Commission should also include any comments or recommended changes to the proposed amendments in taking the following actions: 1. Make the required finding that the proposed amendments to the General Plan and Chapter 29 of the Town Code included in Exhibits 2 and 3 are not a project under CEQA pursuant to Section 21065 of the Public Resources Code and Section 15378 of the State CEQA Guidelines; are exempt from CEQA pursuant to 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that the action will not have a significant adverse impact on the environment; and any future 100 percent affordable residential developments that include new construction under a discretionary process would be subject to project specific environmental review under CEQA (Exhibit 1); 2. Make the required finding that the proposed amendments to the General Plan and Chapter 29 of the Town Code included in Exhibits 2 and 3 are consistent with the General Plan because they would allow a residential use on lands currently designated and zoned to allow a residential use in a mixed-use development of the Town Code. (Exhibit 1); and 3. Forward a recommendation to the Town Council for approval of the proposed amendments to the General Plan (Exhibit 2) and Chapter 29 of the Town Code (Exhibit 3). C. Alternatives Alternatively, the Commission can: 1. Forward a recommendation to the Town Council for approval of the proposed amendments to the General plan and Town Code with modifications; or 2. Continue the matter to a date certain with specific direction. COORDINATION: This report was coordinated with the Town Attorney’s office. EXHIBITS: 1. Required Findings 2. Draft Amendments to the General Plan 3. Draft Amendments to Chapter 29 of the Town Code 4. General Plan Committee Staff Report, February 12, 2025 5. General Plan Committee Draft Minutes, February 12, 2025 6. Map of Mixed-Use Commercial Land Use Designation 7. Map of Commercial Zones Page 459 This Page Intentionally Left Blank Page 460 PLANNING COMMISSION – April 9, 2025 REQUIRED FINDINGS FOR: General Plan Amendment Application GP-24-004 Zoning Code Amendment Application A-24-010 Consider Making a Recommendation to the Town Council to Adopt a Resolution to Amend the General Plan to Allow 100 Percent Affordable Housing Residential Developments as a Permitted Use in the Mixed-Use Commercial General Plan Land Use Designation and Adopt an Ordinance to Amend Chapter 29 (Zoning Regulations) of the Town Code to Add 100 Percent Affordable Residential Developments 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. Project Location: Town Wide. Applicant: Town of Los Gatos. FINDINGS Required Findings for CEQA:  The proposed amendments are not a project under CEQA pursuant to Section 21065 of the Public Resources Code and Section 15378 of the State CEQA Guidelines; are exempt from CEQA pursuant to 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that the action will not have a significant adverse impact on the environment; any future 100 percent affordable residential developments that include new construction under a discretionary process would be subject to project specific environmental review under CEQA. Required Findings for General Plan:  The proposed amendments to the General Plan and Chapter 29 of the Town Code are consistent with the General Plan because they would allow a residential use on lands currently designated and zoned to allow a residential use in a mixed-use development of the Town Code. EXHIBIT 1 S:\PLANNING COMMISSION REPORTS\2025\04-09-2025\ITEM X - PROGRAM AB\EXHIBIT 1 - REQUIRED FINDINGS.DOCX Page 461 This Page Intentionally Left Blank Page 462 Town of Los Gatos 2020 General Plan - Land Use Element 2. Non-Residential Land Use Designations For non-residential land uses, the specific uses mentioned are illustrative, and other compatible uses, including those authorized in any other Zoning District within the Town, may be permitted where authorized by a Conditional Use Permit or Planned Development Overlay Zone. In a mixed-use project residential uses may be permitted in conjunction with other permitted uses in non-residential Zoning Districts with the exception of the Commercial Industrial and Controlled Manufacturing Zoning Districts. For non-residential land uses, building intensity limits are indicated by either allowable land coverage or floor area ratio (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 designation permits a mixture of retail, office, and residential in a mixed-use project, along with lodging, service, auto-related businesses, non-manufacturing industrial uses, recreational uses, and restaurants,. and 100 percent affordable residential developments. Projects developed under this designation shall maintain the smalltown, residential scale and natural environments of adjacent residential neighborhoods, as well as provide prime orientation to arterial street frontages and proper transitions and buffers to adjacent residential properties. This designation should never be interpreted to allow development of independent commercial facilities with principal frontage on the side streets. […] EXHIBIT 2 Page 463 This Page Intentionally Left Blank Page 464 DIVISION 5. - CH OR RESTRICTED HIGHWAY COMMERCIAL ZONE […] Sec. 29.60.420. - Permitted uses. (a) Activities allowed in the CH or restricted highway commercial zone are those which do not unreasonably interfere with nearby residential 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 activities. (4) Limited manufacturing activities when a majority of sales are made on site to the ultimate consumer. (5) Group classes. (6) Specialty food retail without alcoholic beverages. (7) 100 percent affordable residential developments. (b) Examples of proper CH activities are grocery stores, launderettes or dry-cleaning agencies, drugstores, barbershops, appliance repair shops, and offices. Examples of activities which are not proper in the CH zone are palmists and soothsayers, manufacturing, wholesaling, or laundry or dry-cleaning plants. […] EXHIBIT 3 Page 465 This Page Intentionally Left Blank Page 466 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 EXHIBIT 4Page 467 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 468 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 Page 469 This Page Intentionally Left Blanks Page 470 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 Page 471 This Page Intentionally Left Blank Page 472 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 Page 473 This Page Intentionally Left Blank Page 474 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 3Page 475 This Page Intentionally Left Blank Page 476 110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832 www.losgatosca.gov TOWN OF LOS GATOS GENERAL PLAN COMMITTEE REPORT MEETING DATE: xx/xx/2025 ITEM NO: 1 DRAFT MINUTES OF THE GENERAL PLAN COMMITTEE MEETING FEBRUARY 12, 2025 The General Plan Committee of the Town of Los Gatos conducted a meeting on February 12, 2025, at 5:30 p.m. MEETING CALLED TO ORDER AT 5:30 P.M. ROLL CALL Present: Chair Ryan Rosenberg, Vice Chair Emily Thomas, Council Member Maria Ristow, Council Member Rob Rennie, Commissioner Jeffrey Barnett. Absent: Commissioner Rob Stump. Chair Rosenberg noted that there are no members of the public in the audience. VERBAL COMMUNICATIONS None. CONSENT ITEMS (TO BE ACTED UPON BY A SINGLE MOTION) 1.Approval of Meeting Minutes of June 26, 2024. MOTION: Motion by Council Member Ristow to Approve Consent Item. Seconded by Vice Chair Thomas. VOTE: Motion passes (4-1) with Committee Member Barnett recusing. PUBLIC HEARINGS 2.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 EXHIBIT 5Page 477 PAGE 2 OF 4 SUBJECT: MINUTES OF THE GENERAL PLAN COMMITTEE MEETING OF FEBRUARY 12, 2025 Amendment Application GP-24-004 and Zoning Code Amendment Application A-24-010. Project Location: Town Wide. Applicant: Town of Los Gatos. Ryan Safty, Associate Planner, presented the staff report. Committee members discussed the matter. Jeffrey Barnett Are these amendment requests consistent with other jurisdictions? Gabrielle Whelan, Town Attorney These amendments are unique to Los Gatos’ Housing Element. Rob Rennie Are there any mixed-use locations that wouldn’t make sense to have 100 percent affordable housing? Are there commercial zones that allow this? Joel Paulson, Community Development Director The Implementation Program is specific to the mixed-use General Plan Land Use Designation. There are other commercial zones where mixed-use can be allowed with a Conditional Use Permit. Emily Thomas It is suggested to provide a map of the locations this Program would apply to or where we can expand it to, and to see if there are any overlaps with other programs when this goes to Planning Commission. Maria Ristow This is in our approved Housing Element, so we cannot scale this back, but I would like to see a map of potential locations. Rob Rennie Is there a difference in terms of what a developer is entitled to if they do a 100 percent affordable build? Gabrielle Whelan I can speak to Density Bonus Statute: With 100 percent affordable, it is a very generous height restriction compared to regular builds. I will clarify the height restrictions before this item goes to Planning Commission. Emily Thomas Would our Objective Standards apply? Joel Paulson We will be sure to clarify that. Page 478 PAGE 3 OF 4 SUBJECT: MINUTES OF THE GENERAL PLAN COMMITTEE MEETING OF FEBRUARY 12, 2025 Maria Ristow It would be useful to have a comparison or list of what kinds of waivers or concessions can be done between 20 or 100 percent affordable housing. Emily Thomas Include information in the next staff report on what the consequences are if we don’t accomplish these Implementation Programs. Open Public Comment. Lee Fagot Asking for the maps is very helpful for the public, so getting this is great. The more information the public can receive, the better so that we can engage more with the conversations happening. Closed Public Comment. Commissioners continued to discuss the matter. Maria Ristow Are there additional incentives to offer for 100 percent affordable housing builds? Joel Paulson There is an Implementation Program that asks us to provide incentives for 100 percent affordable housing. MOTION: Motion by Chair Rosenberg to recommend approval to the Planning Commission for a General Plan Amendment 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. Additionally, it is recommended to include a map and to clarify the height allowed for the 100 percent affordable housing builds when this goes to Planning Commission. Seconded by Council Member Ristow. VOTE: Motion passes unanimously. OTHER BUSINESS 3. Election of the Chair and Vice Chair Page 479 PAGE 4 OF 4 SUBJECT: MINUTES OF THE GENERAL PLAN COMMITTEE MEETING OF FEBRUARY 12, 2025 Chair Nomination: MOTION: Motion by Council Member Ristow to elect Ryan Rosenberg as Chair of the General Plan Committee. Seconded by Commissioner Barnett. VOTE: Motion passed unanimously. Vice Chair Nomination: MOTION: Motion by Chair Rosenberg to elect Emily Thomas as Vice Chair of the General Plan Committee. Seconded by Council Member Rennie. VOTE: Motion passed unanimously. 4. 2025 General Plan Committee Meeting Calendar ADJOURNMENT The meeting adjourned at 5:55 p.m. This is to certify that the foregoing is a true and correct copy of the minutes of the February 12, 2025, meeting as approved by the General Plan Update Advisory Committee. Joel Paulson, Director of Community Development Page 480 HIGHWAY 17 LOS GATOS BLCREEK TRAIL LAR K A V UNIVERSITY AVSHANNON R DGARDEN HILL DRCARLTON AV NATIONAL AV CAMELLIA T EWINCHESTER BLFAR L E Y R D NINO A V LESTER LNLINDA LN OLEANDER A V HILOW RDJO DR ZENA AV FRA N K A V EATON LN HAR D I N G A V PIN E A V MARCHMON T D R SHORT RDLOS GATOS-A L M A D E N R D LILAC LNNB 17 RAMP LARK BELLA VISTA AVLONGWOOD DRENGLEWOOD AVAZALEA WYESCOBAR AVOKA RDLOMA VISTA AV LE R O Y A V FERRIS AVRO B E R T S R D CHERRYSTO N E D R TURNER STCLARA STFISHER AVCERRO VISTA DRTOPPING W Y GARDE N L N ROBIE LNBENEDICT LNCHI R C O D R BONNIE LNPLA C E R O A K S R DIZORAH WYLONGMEADO W D R EL GATO LNCAUSEY LNLON G R I D G E R D PENN WY BLOSSOM HILL RDJACARANDA WYCAMINO DEL S O L NB 17 RAMP 85 KINGHURST DRBARTLETT STLOMA ST FILL M E R A V HIGHLAND OAKS DRSHADY VIEW LNCORINNE DRROSELEAF L N L A S A S T A S D R MARY WYVINELAND A V CLOVER WYTWIN OAKS DRLA CHIQUITA AVLAS MIRADAS DRALBERT DRMARY ALICE DR OLDE D R CA L D W E L L A V NEWELL AV WILD WYCHA R L E S S T HILLBROOK DREL RANCHO A V ORANGE BLOSSOM LNOAK RIDGE WYRIVIERA D R GEM AVLANSBERRY CTJASMINE WYANN ARBOR DRNO D D I N A V OAK RIM WYAMANDA LNALBERTO WYCHERRY BLOSSOM LNWHE E L E R A V CARDINAL L NMILL RDFLINTRIDGE DRLITTLEFI E L D L NNINO WYMAGNESON L O O P CARLESTER DR NINA CT PEACOCK LNSTEPHENIE LNKINGRIDGE DR VASONA TE SUNRA Y D R QUAIL H I L L R DOHLONE CTWAL K E R S T SUMMIT WY MILLRI C H D R LILAC WY DEL CARLO CTGATE W A Y D R HIGHWAY 17 ROBERTS RDLand Use Designation Mixed-Use Commercial . EXHIBIT 6 Page 481 This Page Intentionally Left Blank Page 482 HIGHWAY 8 5 HIGHWAY 17 CREEK TRAIL LEIGH AVSHANNON R DLOS GATOS BLUNION AVUNIVERSITY AVWINCHESTER BLCARLTON AV ROSS AVHARWOOD RDMAIN ST LA R K A V ROSSWOOD D R WYRICK AV CHARMERAN AV BRANHAM LN SANTA CRUZ AVOKA RDSAMARITAN DR NELSO N W YBASCOM AVBLOSSOM HILL RD ANNE WYMORE AVGARDEN HILL DRTAIT AVKARL AVDAVES A V SHADY LN PARR AV WOODARD RD CAMDEN AV VINELAND A V NATIONAL AV WEDGEWOOD AV TAFT DRCAMELLIA TESTRATFORD DR POLLARD RD COLE DR JAN WYSANDY LNLAURIN D A D R EATON LN BERRY WYDELL AVRAFTON DR BA C H M A N A V CAPRI DRNIN O A V LESTER LNBARRETT AVA STELROSE AVALAN AV BICKNELL R D JACKSOL DREWER DR W E S T H I L L D RLINDA LN OLEANDER AV SHELLEY AV SKY LNELESTER DRKILO AV BERNICE WY BRUCE A V ESTHER DRHILOW RDLITTLE BRANHAM LNCALVIN AVRI D G E T R A I L WHITE OAKS RDSB 8 5 R A M P L O S G A T O S SB 85 RAMP NB 17 AL P I N E A V JO DR ZENA AV HAR D I N G A V AND R E W S S T FR A N K A V GUNSTON WY HERRING AV PINEHURST AVJ O H N S O N A VBELLA VISTA AVJULIO AV CHELSEA DR ADAIR WYREDDING RD BERCAW LNPIN E A V WOODFORD DRSHORT RDROSE AVLILAC LN BREWSTER AVBRONSON AVCALICO AVCARM AVMANDA DRLONGWOOD DRENGLEWOOD AVSUNRISE DR BEL ESTOS DRLENCAR WY FORRESTER RDEL GATO LNFAWN DRHOLMES AVVILLA AV WILLOW DRHERSHNER DR TODD WYLA RINCONADA DR CLEARVIEW DRPRINCE STDOVER STMAY LNDIDUC A W YLOMA VISTA AV KENNE D Y R D NOELLA WYTONY AVVASONA A V VISTA LOOP BEL ESCOU DRCAUSEY LNFERRIS AVBRO A D W A Y RO B E R T S R D EDELEN AVRUCKER DRWILDER AVS T A C I A S T TURNER STCOPELAND LNHAP P Y A C R E S R D VISTA AV CONRAD AV GARDE N L N RUPERT DR SU V I E W D RELM PARK ROBIE LNDE SOTO DROKA LNLONE HILL RDKERSTEN DR CHI R C O D R LU RAY DR ALBERT AV MADERA CTBONNIE LNB E L V U E D RGARDENIA WY TERRI WY STARBRIGHT DR DEL ORO DRREGENT DRMO Z A R T A V KEENE DRBLAN C H A R D D R ROXANNE DRACTON DRHARLOW WYVIVIAN DRBEGONIA DRMUIR DRKINGHURST DRLAURA DROLIV E S T NIMRICK LNBARON DRWEETH DR WILMA WYLENORA AVBELCREST D R NB 85 F R O M FILL M E R A V DIVISION S T MAYS AVHENDY L N L A S A S T A S DRWRAIGHT AVMISE AVFARLEY R D PIN E W O O D L N MARY WYROX B U R Y L N OAKW O O D A V HOMERITE DR NEWELL AV PARK AVCLOVER WYFAIRCREST DR TWIN OAKS DRSHARON LNLINDA AVALBERT DRMARY ALICE DR MARI P O S A A VVIA PINTO HEATHER DR VERDE CT WI L D W Y RIVIER A D R BIRD AVMARR LN LOR A D R KIL M E R A V SAN M A T E O A V ASH CT CRAIG WYBEGONIA DRFA R L E Y R DHIGHWAY 17 KARL AV HIGHWAY 8 5 KENNEDY RD Commercial Zones C-1 - Neighborhood Commercial C-2 - Central Buisness District CH - Restricted Commercial Highway O - Office . 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