Staff Report.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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