Staff Report with Exhibits 1 through 2.Discuss Basement Regulations
PREPARED BY: Sean Mullin, AICP
Planning Manager
Reviewed by: Community Development Director and Town Attorney
110 E. Main Street Los Gatos, CA 95030 ● 406-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
PLANNING COMMISSION
REPORT
MEETING DATE: 11/12/2025
ITEM NO: 3
DATE: November 7, 2025
TO: Planning Commission
FROM: Joel Paulson, Community Development Director
SUBJECT: Discuss the Town’s Regulations Applicable to Below Grade Square Footage.
BACKGROUND:
The Chair requested that an item be added to a Planning Commission agenda for a discussion of
Town regulations applicable to below grade square footage. A brief discussion of the history of
the Town’s current regulations and the approach of other jurisdictions follows.
On October 21, 2002, the Town Council adopted Resolution 2002-167 (Cellar Policy), which
included policies applicable to attics and cellars (Exhibit 1). The intent of the policy was to
reduce bulk and mass by exempting below grade areas from the calculation of floor area in-lieu
of second story massing. The policy included a distinction between basements and cellars,
based on the height of any portion of the enclosed area that extends above grade. Basements
were enclosed areas that extend more than four feet above grade and were counted as floor
area. Cellars were enclosed areas that extend four or fewer feet above grade and were exempt
from floor area.
On November 7, 2017, the Town Council adopted Ordinance 2264, rescinding the Cellar Policy
and incorporating the regulations from the policy into Section 29.40.072 of the Town Code
(Exhibit 2). The Ordinance replaced the terms basement and cellar with above grade and below
grade square footage, respectively. Below grade square footage (formerly cellar) remained
exempt from the Town’s floor area ratio standards, while above grade square footage (formerly
basements) is countable toward FAR. Section 29.40.072 is included below:
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SUBJECT: Discussion of regulations applicable to below grade square footage
DATE: November 7, 2025
Sec. 29.40.072. - Below grade square footage in residential zones.
(a) The use of below grade square footage is allowed in residential zones as a means to
provide "hidden" square footage in lieu of visible mass. Below grade square footage
shall not be counted as floor area when meeting the following criteria:
(1) Below grade square footage shall not extend beyond the enclosed building footprint
of the main building (including attached garage) or detached accessory structures.
(2) Below grade square footage is limited to one (1) location on a property, additional
below grade areas shall be included in the floor area calculation.
(3) Light and exit wells may encroach into front and side yard setbacks for the purpose
of providing the minimum criteria for natural light and ventilation as required to
comply with the uniform building code. A minimum three-foot wide pedestrian
access shall be provided around the light well(s).
(4) Light wells and exit wells may extend beyond the building footprint.
(5) Planning Commission may allow an exception to the criteria listed above based on
extenuating or exceptional circumstances applicable to the property including, but
not limited to size, shape, topography, location, or surroundings. The Commission
shall make findings to support a decision.
In preparation for the Planning Commission’s discussion, staff conducted initial research into
the basement regulations in the following neighboring jurisdictions and found that all exempt
below grade square footage from floor area standards with a variety of exceptions and
calculation methods:
• Atherton
• Campbell
• Cupertino
• Los Altos
• Los Altos Hills
• Milpitas
• Monte Sereno
• Morgan Hill
• Palo Alto
• Santa Clara
• Saratoga
• Sunnyvale
• Woodside
Staff looks forward to the Commission’s discussion on this topic. Additionally, staff will be
prepared to discuss potential next steps based on the Commission’s direction.
PUBLIC COMMENTS:
Staff conducted outreach through the following media and social media resources, for the
notice of the public hearing:
• The Town’s website home page, What’s New;
• The Town’s Facebook page;
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SUBJECT: Discussion of regulations applicable to below grade square footage
DATE: November 7, 2025
• The Town’s Twitter account;
• The Town’s Instagram account; and
• The Town’s NextDoor page.
Additionally, staff contacted a group of local architects and designers to make them aware of
the Commission’s discussion. No comments were received at the time this report was
published.
ENVIRONMENTAL REVIEW:
The discussion of the regulations applicable to below grade square footage is not considered a
project under the adopted Guidelines for the Implementation of the California Environmental
Quality Act.
EXHIBITS:
1. Resolution 2002-167-Adopting Cellar and Attic Policies
2. Ordinance 2264 - Amending Chapter 29 (Zoning Regulations) Regarding Cellars
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RESOLUTION 2002-167
RESOLUTION OF THE TOWN COUNCLL
OF THE'TOWN OF LOS GATOS
ADOPTING CELLAR AND ATTIC POLICIES
WHEREAS, the Town of Los Gatos does not currently have any written codes or policies
regulating cellars and attics, and.
WHEREAS, the General Plan encourages use of basements and cellars to provide hidden
square footage in-lieu of above .ground visible mass (Policy L.P.2.1); and
WHEREAS, adoption of such policies will help provide clear direction to developers and
homeowners processing development applications (General Plan Implementing StrategyL.I.7.4); and
WHEREAS, adoption of such policies will help reduce the bulk and mass and scale of new
and remodeled homes; and
THEREFORE BE IT RESOLVED: the Town Council of the TOWN OF LOS GATOS
does hereby adopt the Cellar and Attic Policies attached hereto as Exhibits A and B.
PASSED AND .ADOPTED at a regular meeting of the Town Council held on the 21st day
of October 2002, by the following vote:
COUNCIL MEMBERS:
AYES: Steven Blanton, Sandy Decker, Steve Glickman, Joe Pirzynski,
Mayor Randy Attaway.
NAYS : None
ABSENT: None
ABSTAIN: None
SIGNED:
MAYO F THE TO OF LOS GATOS
LOS CIATOS, CALIF P.NIA
ATTEST:
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
EXHIBIT 1
TOWN COUNCIL POLICY
TOWN OF LOS GATOS
Subject: Attics Enabling Action:
2002-167
Page 1 of 1
Approved: Effective
Date: October 21, 2002
Randy At ay, Mayor
PURPOSE:
The following policy shall be used when reviewing development plans that include attic space. The
intent of this policy is to reduce the visible bulk and mass of structures.
DEFINITION:
An attic is anon-habitable space (that may or may not be used for storage) with a maximum height
of seven feet six inches as measured from the upper surface of the attic floor to the underside of the
roof above. For the purposes of this definition, attic spaces are considered to have floor surfaces.
POLICY:
Attics that meet the above definition shall not be counted as floor space for purposes of determining
compliance with Floor Area Ratio (FAR) limitations.
Note: Once an attic space exceeds seven feet six inches in height, .all areas down tofivefeet will be
counted toward thefloor area ratio (FAR).
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2i, 2002
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TOWN COUNCIL POLICY
TOWN OF LOS GATOS
Subject: Cellars
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Enabling Action:
2002- 167
Approved: ~~~-~`~ Effective
Date: October 21, 2002
Randy Attaway, Mayor
PURPOSE:
General Plan policy L.P.2.3 states: "Encourage basements and cellars to provide "hidden" square
footage in-lieu of visible mass."
The following policy shall be used by staff when reviewing plans that include a cellar.
DEFINITION:
A cellar is an enclosed area that .does not extend more than three feet above the existing or finished
grade in any location. Cellars, as defined here, shall not be included in the FAR. That area of a
cellar where the building height exceeds four feet above existing or finished grade shall not be
included in this definition and shall be included in the floor area calculation. For purposes of this
policy, whichever .grade (existing or proposed) results in the lowest building profile of a building
shall be used.
POLICY:
In reviewing plans for cellars staff shall consider the following:.
A cellar shall not extend more than four feet above the adjacent finished grade at any point
around the perimeter of the foundation. Below grade floor area must meet the above
definition of cellar to be excluded from the floor area calculations for the structure.
If any portion of a cellar extends more than four feet above grade, that area shall be included
in the floor area calculation.
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Revised September20, 2002
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Light and exit wells may encroach into front and side yard setbacks provided that a minimum
three-foot wide pedestrian access is provided around the light well(s). Light wells and
exiting shall be the minimum required to comply with the Uniform Buildind Code criteria
for natural light and ventilation.
Below grade patios may extend out from a cellar into the required rear yard provided that a
minimum 10 foot setback is retained from the rear property line.
Cellars and basements (except light and exit wells) shall not extend beyond the building
footprint,.
The Planning Commission may allow an exception to this policy based on extenuating or
exceptional .circumstances applicable to the property including size, shape, topography,
location or surroundings. The Commission shall make findings to support such a decision.
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Revised September20, 2002
ORDINANCE 2264
ORDINANCE OF THE TOWN OF LOS GATOS
AMENDING CHAPTER 29 (ZONING REGULATIONS) OF THE TOWN CODE
REGARDING CELLARS
WHEREAS, the Town Council wishes to simplify and provide clarity with regard to below
grade square footage; and
WHEREAS, the proposed code amendments are consistent with the General Plan and its
Elements.
THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES ORDAIN AS FOLLOWS:
SECTION I
Town Code Chapter 29 is hereby amended to read as follows:
CURRENT DEFINITIONS:
Sec. 29.10.020 - Definitions.
AMENDED DEFINITIONS:
Sec. 29.10.020 - Definitions.
FloorAreo, gross means the entire enclosed area of all floors that are more than four feet above
the proposed grade at ,^•• i3eiRt ^^ the G^", -S measured from
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Ordinance 2264 November 7. 2017
EXHIBIT 2
the outer face of exterior walls or in the case of party walls from the centerline. Gross floor area
also includes any part of exterior balconies or walkways above the ground floor required for
ingress and egress. Ornamental balconies and outside unroofed corridors not required for ingress
or egress are excluded. The area of elevator shafts and stairwells is also included except on the
ground floor.
PROPOSED SECTION:
Sec. 29.40.072 — Below grade square footage in residential zones
a) The use of below grade square footage is allowed in residential zones as a means to
provide "hidden" square footage in lieu of visible mass. Below grade square footage shall
not be counted as floor area when meeting the following criteria:
1. Below grade square footage shall not extend beyond the enclosed building
footprint of the main building (including attached garage) or detached accessory
structures.
2. Below grade square footage is limited to one location on a property, additional
below grade areas shall be included in the floor area calculation.
3. Light and exit wells may encroach into front and side yard setbacks for the purpose
of providing the minimum criteria for natural light and ventilation as required to
comply with the uniform building code. A minimum three -foot wide pedestrian
access shall be provided around the light well(s).
4. Light wells and exit wells may extend beyond the building footprint.
5. Planning Commission may allow an exception to the criteria listed above based on
extenuating or exceptional circumstances applicable to the property including but
not limited to size, shape, topography, location, or surroundings. The Commission
shall make findings to support a decision.
AMENDED SECTIONS:
Sec. 29.40.650 — Height.
The maximum height of any principal building in a R -M or multiple - family residential zone is thirty
30) feet, except when the building has ce41aF below grade parking the maximum is thirty -five (35)
feet. The height shall be measured as provided in section 29.40.045 and is subject to the exception
listed in section 29.10.090.
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Ordinance 2264 November 7, 2017
Sec. 29.20.485(3)(c) - Administrative procedure for minor historic projects
Additions to the first floor of a residence (excluding additions not visible from the street that do
not exceed fifteen (15) percent of the existing floor area of the house (excluding GellaFs below
grade square footage) or four hundred (400) square feet of gross floor area, whichever is less).
SECTION II
With respect to compliance with the California Environmental Quality Act (CEQA), the
Town Council finds as follows:
A. This ordinance is not subject to review under CEQA pursuant to sections and
15061(b)(3), in that it can be seen with certainty that there is no possibility that the proposed
amendment to the Town Code would have significant impact on the environment.
SECTION III
If any provision of this ordinance or the application thereof to any person or
circumstance is held invalid, such invalidly shall not affect other provisions or applications of
the ordinance which can be given effect without the invalid provision or application, and to this
end the provisions of this ordinance are severable. This Town Council hereby declares that it
would have adopted this ordinance irrespective of the invalidity of any particular portion
thereof and intends that the invalid portions should be severed and the balance of the
ordinance be enforced.
SECTION IV
Except as expressly modified in this Ordinance, all other sections set forth in the Los Gatos
Town Code shall remain unchanged and shall be in full force and effect.
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Ordinance 2264
November 7, 2017
SECTION V
This Ordinance was introduced at a regular meeting of the Town Council of the Town of
Los Gatos on the 17`h day of October, 2017and adopted by the following vote as an ordinance
of the Town of Los Gatos at a meeting of the Town Council of the Town of Los Gatos on the 7`h
day of November, 2017 and becomes effective 30 days after it is adopted.
In Lieu of publication of the full text of the ordinance within fifteen (15) days after its
passage a summary of the ordinance may be published at least five (5) days prior to and fifteen
15) days after adoption by the Town Council and a certified copy shall be posted in the office
of the Town Clerk, pursuant to GC 36933(c)(1).
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
U "CL
MAYOR OF THE TOWN Og LOS GATOS
LOS GATOS, CALIFORNIA
7DATE:
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: Q
Ordinance 2264
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November 7, 2017