Staff Report.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
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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
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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.
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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.
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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.
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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
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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
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