Item 55.2 Study Session Review of Housing Element Update Technical Appendix and Redevelopment Housing StrategiesCOUNCIL AGENDA REPORT
DATE: December 5, 1996
TO: MAYOR AND TOWN COUNCIL
FROM: TOWN MANAGER
SUBJECT:
BACKGROUND:
MEETING DATE: 12/9/96
ITEM NO.
53 -a
STUDY SESSION REVIEW OF HOUSING ELEMENT UPDATE TECHNICAL APPENDIX
AND REDEVELOPMENT HOUSING STRATEGIES
The Town's General Plan Housing Element has not been certified by the State. On May 6, 1996, the Council authorized
the Town Manager to execute an agreement with consultant Melanie Shaffer Freitas to update the Housing Element.
On October 2, 1996, Ms. Shaffer Freitas submitted a Draft Technical Appendix for review purposes (Attachment 1).
The updated Housing Element of the General Plan will be a summary of the Technical Appendix. On October 21, 1996,
the Draft Technical Appendix was sent to the State Department of Housing and Community Development for review.
Staff and Ms. Shaffer Freitas have been in communication with the State. Ms. Shaffer Freitas will be present the States
comments at the Council study session, as the comments are not in a formal written format at this time.
On November 13, 1996 Ms. Shaffer Freitas presented the Housing Element Technical Appendix to a joint session of
the General Plan Committee, Redevelopment Advisory Committee and Community Services Commission Housing
Committee. Interested residents were also present at that meeting. Copies of the overhead transparencies presented
at the meeting are included as Attachment 2. A summary of Committee and public comments is included as Attachment
3. Ms. Shaffer Freitas has responded to many of the comments and has revised the document accordingly (revisions
are included on pages 1,2,3,17 and 67).
At the November 13, 1996 meeting, Ms. Shaffer Freitas complimented the Town for the existing Affordable Housing
programs (such as the Below Market Price (BMP) Ordinance) and housing projects such as Open Doors and the
Blossom Hill Terraces. Attachment 7 lists the Los Gatos Housing Programs. Compared to nearby cities with certified
housing elements, Los Gatos has succeeded in providing housing for very low and low income households (Attachment
5), yet the Town can not rest on past projects. The steps toward developing new affordable housing need to be taken
now (Attachment 6). The Town faces a challenge where funding exists and cannot be used for any other purpose.
DISCUSSION:
Following is a synopsis of the major goals that formed the 1996-99 housing strategy:
1. Developing new units affordable to very low, low and moderate income households
The most significant issue is the lack of affordable housing for very low and low income households in Los
Gatos. The Open Doors project provides this type of housing and shows that affordable housing can be
developed in Town. The Town needs to encourage more affordable housing. Formalizing the Town's
Affordable Housing Fund by including Redevelopment Housing, BMP in -lieu and CDBG funds into one fund
with the common objective of producing affordable units is one way to encourage more affordable housing.
PREPARED BY: LEE E. BOWMAN
PLANNING DIRECTOR
Reviewed by: (J ' Attorney \ Finance
Revised: 12/5/96 11:30 am
Reformatted: 10/23/95
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: HOUSING ELEMENT UPDATE
December 5, 1996
2. Preserving existing affordable units
Under current law, there are three developments that will lose their governmental subsidies within the next ten
years. The Town has restrictions that prevent the units from converting to market rate, so the owners may have
to find alternative subsidies.
3. Re -defining the Town's commitment to affordable housing
The Town now needs to re-evaluate its commitment to affordable housing. In particular, there should be a
discussion about formalizing a position for implementing affordable housing within the Town staff structure.
The housing constructed in the Open Doors project is an example of our ability to provide very low and low
income units. Sixty of the 64 units provided in Open Doors are very low income units (Attachment 2, page
7). This was a significant accomplishment during the 1990-96 time frame. A letter supporting affordable
housing for low income families is included as Attachment 8. The letter was submitted by long time Los Gatos
resident and affordable housing advocate Georgia Travis.
4. Conserving existing housing stock
The existing housing stock needs to continue to be protected, especially those units that may provide
affordable housing at market rates such as mobile home parks. The Town should review the revisions
recommended in the 1996 Housing Element Update in regard to the Condominium Conversion Ordinance,
Mobile Home Park Ordinance, and Residential Demolition Ordinance.
5. Continuing existing housing programs
The Town has an effective assortment of regulations and programs that should be continued (Attachment 6).
6. Re-evaluating Housing Conservation Program
Participation has decreased in recent years. The program should be marketed to specific areas or households
such as the mobile home parks. Depending on the success of these efforts, the Town may want to consider
using its CDBG funds for new affordable housing construction.
ENVIRONMENTAL ASSESSMENTS:
Is a project as defined under CEQA and may have a possible significant effect. An environmental consultant contracted
by the Town will prepare an Initial Study. If no significant environmental impacts are identified, a Negative Declaration
will be prepared.
FISCAL IMPACT:
None.
Attachments:
1. Draft Housing Element Technical Appendix, dated October 2, 1996
2. Copies of transparencies presented at November 13, 1996 General Plan Committee meeting
3. Summary of Community Services Commission Housing Committee (one sheet) and General Plan Committee (two
sheets) comments
4. Article from November 20, 1996 Los Gatos Weekly Times
5. Regional Housing Needs and Accomplishments, 1988-95, received October 23, 1996
•
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: HOUSING ELEMENT UPDATE
December 5, 1996
6. The Who, Why and How behind Affordable Housing
7. Los Gatos Housing Programs (two sheets)
8. Letter supporting affordable housing from Georgia Travis, dated April 15, 1996
Distribution:
Melanie Shaffer-Freitas, 311 Laurent Street, Santa Cruz, CA 95060
Regina Falkner, Community Services Director
Community Services Commission Housing Committee
General Plan Committee
League of Women Voters
Mid -Peninsula Housing Coalition
Tom Ferrito, 101 Church Street, Los Gatos, CA 95032
Nancy Burbank, 108 Belcrest Drive, Los Gatos, CA 95032
Los Gatos Weekly
Connie Skipoteris, San Jose Mercury News
Charles Chew, HCD, County of Santa Clara, 1735 N. 1st, Ste #265, San Jose, CA. 95112
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OCT 0 21996
TOWN OF LOS GATOS
PLANNING DEPARTMENT
By
Town of Los Gatos
Housing Element Technical Appendix
FaI1,1996
Draft (For Review Purposes Only)
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Town of Los Gatos
Housing Element Technical Appendix
Fal1,1996
Draft (For Review Purposes Only)
Technical Appendix Prepared by:
Melanie Shaffer Freitas
Freitas + Freitas
311 Laurent Street
Santa Cruz, California 95060
(408) 429-5018
Assistance Provided by:
Lee E. Bowman, Planning Director
Bud Lortz, Senior Planner
Sandy Bally, Associate Planner
Kristine Syskowski,Assistant Planner
Regina Falkner, Community Services Director
TABLE OF CONTENTS
Chapter Page
1 INTRODUCTION
General Plan and Housing Elements 1
Housing Element History: Town of Los Gatos 1
Citizen Participation 2
2 POPULATION AND HOUSEHOLDS
Population Growth 4
Population by Race/Ethnicity 5
Population by Age 5
Households and Household Size 6
Households by Type 7
Household Tenure 7
Households by Income Level 8
Households with Special Needs 9
3 HOUSING STOCK
Inventory of Housing Units 17
Housing Units by Type and Tenure 17
Vacancy Rates 19
Housing Age and Condition 21
Cost of Housing and Affordability 22
4 EXISTING AFFORDABLE HOUSING
OPPORTUNITIES
Town Housing Programs and Policies
Federal and State Housing Resources
26
31
5 FUTURE HOUSING NEEDS
New Construction 34
Rehabilitation Need 36
Conservation of Affordable Units 37
Chapter Page
6 HOUSING CONSTRAI NTS
Governmental Constraints
Market Constraints
7
REVIEW OF 1991 HOUSING ELEMENT
Effectiveness of the 1991 Housing Element
and Progress in Implementation
Appropriateness of Goals, Objectives
and Policies
42
47
49
63
8 HOUSING STRATEGY
Overview 65
Summary of Housing Issues 66
Housing Goals, Policies and Programs 69
APPENDIX 77
1. Redevelopment Housing Plan, Town of Los Gatos
2. Bibliography
3. Inventory of Housing Resources
4. Inventory of Vacant Land, 1996
TABLE OF ILLUSTRATIONS
Illustration # Page
1 Population by City, Santa Clara County 1980-90 4
2 Population by Race/Ethnicity, 1990 5
3 Population by Age, 1980-90 6
4 Household Income Distribution, 1989 8
5 Definition of Household Income Levels, 1996 9
6 Housing Stock by Type, 1996 18
7 Change in Housing Unit Type, 1990-96 18
8 Housing Units by Tenure, 1990 19
9 Vacancy Rates, Owner and Renter Units, 1990 20
10 Year Structure Built, 1990 21
11 Homeowner Affordability, 1995 23
12 Rental Housing Affordability, 1996 24
13 Housing Programs, Town of Los Gatos, 1996 27-28
14 Affordable Housing Unit Inventory, 1996 33
15 ABAG New Construction Need by Household 35
16 Revised ABAG New Construction Need 36
17 Inventory of Publicly Assisted, Multi -Family Units 38
18 Cost Analysis to Acquire/Replace At Risk Units 40
19 Description of Residential Zone Districts 43
20 Inventory of Vacant Land by Zone Category 45
21 1991 Housing Implementation Plan: Progress
from 1991-95 and Future Actions 51-62
22 Housing Strategy , Town of Los Gatos 1996-99 70-76
CHAPTER 1: INTRODUCTION
General Plan and Housing Elements
Cities and counties in California are required to develop General Plans, which
are Tong -range planning documents. A community's General Plan typically
provides a comprehensive and long-term strategy for the physical development
of the community and any adjoining land. There are seven subject areas that
must be addressed in a community's General Plan, although other subjects can
also be added based on the community's needs and objectives. The seven
mandated "elements" that each General Plan must contain include land use,
circulation, conservation, open space, noise, safety and housing elements. Los
Gatos' current General Plan was originally adopted in 1985.
The Housing Element of the General Plan is the only element that is mandated
by State law to 1) contain certain subject areas, 2) be updated on a regular
basis and, 3) be reviewed by a State agency for conformance to State law. The
State of California, Department of Housing and Community Development (HCD)
can review each community's Housing Element to determine if it complies with
State Housing Element Law, specifically Article 10.6 of the Government Code.
Article 10.6 asks communities to include the following information in their
Housing Element:
• evaluation of existing housing needs;
• estimates of projected housing needs;
• review of previous Housing Element goals and programs;
• inventory of adequate sites for housing and evaluation
of infrastructure condition and requirements;
• identification of constraints on housing, including
governmental as well as non -governmental constraints;
• development of housing programs to address identified
needs; and,
• quantifiable objectives for attainment of new construction,
rehabilitation and conservation housing needs.
Housing Elements : Town of Los Gatos
The document that follows is the 1996 Housing Element Technical Appendix for
the Town of Los Gatos. The Housing Element itself has been prepared as a
separate document so that it can be inserted into the Town's General Plan and
reflect the format of the other Elements. The Housing Element consists of a brief
introduction as well as issues, policies, and implementation measures which
were developed based on the information contained in the Technical Appendix.
INTRODUCTION
The Housing Element Technical Appendix was prepared pursuant to Article
10.6 of the Government Code and was developed to address the issues noted
above. The Town's Housing Element Technical Appendix also includes
information not required by Article 10.6 but important in the evaluation of
housing needs. For example, Chapter 4 of the Technical Appendix is a
comprehensive inventory of the existing affordable housing resources in the
Town. This inventory was designed so that the reader would be able to obtain a
complete overview of the range of housing opportunities currently available in
Los Gatos. This inventory provides information that is important in order to
evaluate housing needs and is supplemental to that required by State Housing
Element Law.
The Town's most recent Housing Element was originally adopted in 1985, at the
time the Town's General Plan was approved by the Town Council. HCD
reviewed the Town's Housing Element several times since the 1985 adoption
and identified issues that still needed to be addressed in its opinion. The most
recent review occurred in 1991 when the State outlined its comments to the
Town in a May, 1991 letter. The Tcwn reviewed those comments, made
changes as appropriate to the document and, in August of 1991, adopted the
revised Housing Element. As part of that adoption, the Town Council made the
finding that the 1991 Housing Element substantially complies with the
requirements of Government Code Section 65580. In December of 1 991 , the
State once again reviewed the 1991 revised Element and notified the Town that
HCD staff again fcund that additional revisions would be necessary for HCD to
find it in compliance with State law.
In 1996, the Town updated its Housing Element and submitted it to the State
HCD on fcr review. On , HCD found the Town's
1996 Housing Element to be in compliance with State Housing Element law.
Citizen Participation
The goal of the citizen participation process in the review of the Housing
Element Technical Appendix and Housing Element is to encourage the
maximum level of participation as feasible. Included in this goal is the objective
of ensuring public participation of all economic segments in the community as
well as households with special needs.
In order to achieve this goal, the Town of Los Gatos has identified the following
steps as its citizen participation plan for both the draft document as well as any
subsequent amendments to the document.
1. P U EL!C REVIEW OF HOUSING ELEMENT FCR 30 DAYS
Copies of the draft document will be made available for public review and
comment for a 30 day period. Availability of the document will be posted at the
Town Hall, Neighborhood Center, Public Library and the Town Hall Conference
on the Virtual Valley Community Network Bulletin Board System. Availability of
the document will be printed in the "Los Gatos Weekly Times."
2
'7
INTRODUCTION
2. REVIEW BY TOWN ADVISORY 500IE5
The Town -appointed Community Services Commission, Redevelopment
Advisory Committee and the General Plan Committee will review the draft
document and also receive any public comments during their review period.
Interested community groups will be invited to send representatives to the
Commission's meeting(s) to participate in the discussion and review of the draft
document. The Committees and Commission's comments and
recommendations will then be forwarded to the Town Council and
Redevelopment Agency prior to their review of the document.
3. PU5L!C KEAAZINGS
The draft and final document will be reviewed at public hearings before the
Planning Commission, Town Council and Redevelopment Agency. A twenty-
one day notice of these hearings will be advertised in the kcal newspaper as
well as being posted at the Town Hall, Neighborhood Center and the Public
Library.
CHAPTER 2: POPULATION AND HOUSEHOLDS
Population Growth
The population of Los Gatos has increased considerably since the Town's first
100-acre site in 1890. The census population for 1890 showed a total Town
population of 1,652 persons. Exactly 100 years later, the census count
indicated that the Town's 1990 population was 27,357 persons.
The rate of population growth in Los Gatos during the past few decades has
been very interesting. In 1970, the population was 23,735 persons according to
the U.S. Census count. By 1980, the Town's population had grown by 3,171
persons or a total increase of 13.4%. The rate of growth slowed down
significantly during the next 10 year time period. During the decade between
1980-90, Los Gatos' population increased by only 2%. In 1980, the Town's
population was 26,906 and by 1990, that number had increased by only 451
persons to 27,357. This was one of the lowest rates of population growth for
communities in Santa Clara County for that decade. Santa Clara County's total
population increased by 16% and the State of California's population increased
by 25.7% for that same time period.
illustration #1 Population by City, Santa Clara County, 1980-90
City
Campbell
1980
27,067
199Q
36,048
Growth: 1950-90
33%
Cupertino
34,420
40,263
17%
Gilroy
21,641
31,487
45%
Los Altos
25,769
26,303
2%
Los Altos Hills
7,421
7,514
1 %
Los Gatos.....
26,906
27,.3,5E
', 2%
Milpitas
37,820
50,686
34%
Monte Serena
3,434
3,287
-4%
Morgan Hill
17,060
23,928
40%
Mountain View
58,655
67,460
15%
Palo Alto
55,225
55,900
1 %
San Jose
628,283
782,248
25%
Santa Clara
87,746
93,613
7%
Saratoga
29,261
28,061
-4%
Sunnyvale
106,618
117,229
10%
Unincorporated
128,058
106,193
-17%
County Total 1,295,071 1,497,577 16%
POPULATION AND HOUSEHOLDS
However, the rate of population growth appears to have increased since the
1980-90 decade. As of January 1, 1996, the State of California, Department of
Finance estimates indicate that the population of Los Gatos was 28,951
persons. This would be a total population increase of 6% since 1990, or
approximately 1 % annually.
Population by Race/Ethnicity
In evaluating racial distribution in the Los Gatos population, the 1990 U.S.
Census data indicate that Los Gatos' population is primarily composed of White
persons. Approximately 90% of the population was identified as White in 1990.
The next largest population group by race in the Town was Asian or Pacific
Islanders who comprised 5% of the Town population. The total number of
Hispanic residents was 1,277 persons or 4.7% of the total population. Racial
categories of Black or American Indian, Eskimo or Aleut represented less than
1 % of the Town's population.
In comparing Los Gatos to countywide racial statistics, it is apparent that Los
Gatos' share of minority racial groups is less than the countywide average in all
categories. For example, 20.5% of Santa Clara County's population is Hispanic
while only 4.7% of the Town's population identified themselves as Hispanic in
1990. The information below compares the raciaVethnic distribution of the
Town to that of the County of Santa Clara, as of 1990.
Illustration #2 Population by Race/Ethnicity:
Town of Los Gatos and County of Santa Clara, 1990
Town of Los Gatos
County of Santa Clara
Population
27,357
1,497,577
Percent White
89.7%
58.0%
Percent Black
0.4%
3.5%
Percent Hispanic
4.7%
20.5%
Percent Asian/Pacific
Islander
5.0%
17.0%
Percent American Indian,
Eskimo or Aleut.
0.3%
0.4%
Percent Other
0%
1.0%
Source: "United Way Needs Assessment for Santa Clara County", 1993-94
Page 10, Exhibit 2.2 (based on 1990 U.S. Census) ; Percentages Rounded
Population by Age
The median age of Los Gatos' population has increased dramatically over the
last several decades. In 1970, the median age was 30.3 years. By 1990, the
median age of Los Gatos residents had increased by approximately 8.5 years
POPULATION AND HOUSEHOLDS
from 1970, climbing to 38.8 years. These median age figures are quite high in
relation to those for Santa Clara County, which in the 1990 census reported a
median age of 31.2 years for males and 33.0 years for females.
This "aging" of the population is evident in the increase in persons 21 years of
age and older and the decrease in persons under the age of 21 years. In the
two decades since 1970, the total number of persons under 21 years has
decreased dramatically while the number of persons and the percentages of
persons over 21 years has increased.
illustration #3 Population by Age:
Town of Los Gatos, 1970 and 1990
Age Groups
Under 18 Years
18-20 Years
21-64 Years
Senior (65 and Over
Total Persons
1970
8,097 (34%)
973 (4%)
11,993 (51%)
2,672 (11%)
23,735 (100%)
Source: U.S. Census, 1970 and 1990
- 1990
5,029 (18%)
884 (3%)
17,926 (66%)
3,518 (13%)
27,357 (100%)
Change
Households and Household Size
For purposes of evaluating housing supply and demand, it is useful to translate
information from population figures to household data. According to data from
the State of California, Department of Finance, there were 28,951 persons
residing in Los Gatos as of January 1, 1996. Of this total, 674 were living in
group quarters. The remaining 28,277 persons were living in households and
the total number of households in 1996 was 11,667 households.
Household size is an important consideration when addressing housing issues.
The number of people occupying a housing unit affects the size and condition of
the unit, as well as the demand for additional units in the housing market. In
Los Gatos, however, recent data indicate that the average household size is not
an indicator for concern. The 1996 household size in Los Gatos was 2.42
persons per household, which was only a very slight increase from the 1990
household size of 2.36 persons per household. In comparing the 2.42 figure to
other communities in Santa Clara County in 1996, Los Gatos' average
household size was one of the smallest in the County. Of the 14 other
incorporated communities in the County, only two (Palo Alto and Mountain
View) had smaller average household sizes. Further, the average household
size for the County (incorporated as well as unincorporated areas) was 2.9
persons per household. Therefore, in relation to surrounding communities and
given the type of housing available in Los Gatos, the household size figure of
2.4 is within a reasonable range.
POPULATION AND HOUSEHOLDS
Households by Type
According to 1990 U.S. Census data, approximately 7,269 households or 64%
of all households were "family" households and 4,054 households (36% of total
households) were "non -family" households. A family household is one in which
a household Jives with one or more persons related to him or her by birth,
marriage or adoption. A non -family household is one in which a householder
lives alone or with non -relatives only.
Family households are by definition typically larger in size than non -family
households because family households consist of a minimum of two persons
while non -family households can be single person households. As would be
expected then, in Los Gatos there are more persons living in family than non -
family households. Of the total 27,357 persons in Los Gatos in 1990, 77.7%
lived in family households (21,253 persons) and 20% (5,462 persons) lived in
non -family households. The remaining 2.3% of the population (642 persons)
reported that they were living in group quarter situations.
It is interesting to note that, of the family households in 1990, there were fewer
households with children under the age of 18 years at home than other types of
family households such as a married couple only or a married couple with
children over the age of 18 or with other family relatives living with them. Only
32% of family households were a married couple with children under the
age of 18 years. Another 8% of the family households were single parent
households (primarily female -headed) with children under the age of 18 years
at home. These two family household types then constitute 40% of all family
households. The remaining 60% of family households are households with
no children under the age of 18 years. These households are primarily
married couple households and the assumption is that either they are living by
themselves or with other family members.
Household Tenure
Household tenure (owner occupied or renter occupied) is an important
characteristic to review in evaluating housing supply and demand.
Communities need to have an adequate supply of units available both for rent
and for sale in order to accommodate a range of households with varying
incomes, family sizes and composition, life styles, etc.
In Los Gatos, the majority of housing units are owner -occupied. The 1990 U.S.
Census data indicate that 64% of all occupied units were owner -occupied
(7,240 units) and the remaining 36% (4,033 units) were renter -occupied. Los
Gatos has traditionally had a goal of at least 35% of the housing stock being
renter -occupied. Therefore, the 1990 data indicate that the Town's housing
stock reflects the desired percentage.
7
POPULATION AND HOUSEHOLDS
Households by Income Level
Generally, Los Gatos households have higher than average median family
incomes. The 1990 U.S. Census data indicated that the median family
household income in Los Gatos was $69,481. This is considerably more than
the average family household income of $53,670 for the County of Santa Clara
for the same time period.
While there are many high income households in Los Gatos, there are also
household on limited incomes. An interesting statistic from the 1990 Census
data is the fact that 18% of all Los Gatos households reported that their annual
household incomes were Tess than $25,000. This percentage is quite dose to
the countywide average of 21 % of all Santa Clara County households reporting
incomes of $25,000 or less. In other words, Los Gatos has very nearly the
same proportion of households with limited incomes as the County as a whole.
However, Los Gatos also has almost twice as many households proportionally
who had incomes over $100,000 in 1989 than the rest of the County.
Illustration #4 Household income Distribution;
Town of Los Gatos and County of Santa Clara, 1909
_._.._... _ ._ �_.�_......_._._.._..S25.000 $25-50.0 50-100.000 t100.000+
Town of Los Gatos 18% 26% 35% 22%
County of Santa Clara 21 % 31 % 37% 11
Source: "United Way Needs Assessment for Santa Clara County", 1993-94
Page 18, Exhibit 2.8 (based on 1990 U.S. Census)
The 1990 Census, using 1989 income data, also identified persons whose
incomes were below the federal poverty level. In Los Gatos, there was a total of
154 families whose income was below the poverty line. Approximately 71 % of
the 154 families had children under the age of 18 years.
For purposes of federal and state housing assistance programs, households
are typically defined as very low income, low income, moderate income and
middle income. Unfortunately, the definition of these income categories varies
depending on whether a state (such as the State of Califomia) or a federal
definition is used. Both the state and federal governments define income level
as a percentage of the area's median family income but the threshold of the
income determination varies between the two governmental agencies. The
chart on the following page illustrates the income levels based on the 1996
Santa Clara County area median family income of $67,400 for a household of 4
persons. The definitions are separated into those used by federal agencies
and those used by state agencies.
POPULATION AND HOUSEHOLDS
Illustration #5 Definition of Household Income Levels,
Maximum Income Levels for Four Person Households
5anta Clara County, 1996
Very Low:
Lower:
Moderate:
Middle:
0-50 % of Area MFI*
51-80% of Area MFI*
81-120% of Area MFI'
N/A.
0-30 % of Area MFI'
31-50% of Area MFI'
51-80% of Area MFI'
81-95% of Area MFI'
'MFI: Median Family Income The 1996 median family income was $67,400 for
a four person household in Santa Clara County. The 80% limit was revised in
May,1996 by HUD and, due to the high median incomes in the County, is adjusted
to 62.5% of median income, rather than the true 80% of median.
The type of household definition used can be confusing and is typically
dependent on the funding source of the housing program being implemented.
For example, the Town's Redevelopment Housing Programs use State of
California income definitions because the programs are governed by State
Redevelopment law. Some of the affordable housing developments in the
Town, such as the elderly -occupied four-plex on Nicolson Avenue, originally
used federal subsidies and so the rent and occupancy of those units are tied to
federal income definitions. Fortunately, the income definitions are all based on
the same median family income, which was $67,400 in 1996 for a four person
household. Therefore, the major difference in the calculation is the percentage
threshold at which a household is categorized according to household income
level.
Households with Special Needs
There are certain households within a community that typically have special
housing needs. In Los Gatos, those households which have been identified as
having special housing needs include:
1. Elderly Households,
2. Single Parent Households,
3. Disabled Households,
4. Overcrowded Households, and
5. Homeless Households.
Information about each of these households is described in more detail in the
paragraphs that follow. A general description of each of these 5 household
types is provided on the following pages as well as a summary of the
household's more significant housing needs and, also, of the current resources
available.
POPULATION AND HOUSEHOLDS
1. ELDERLY HOUSEHOLDS
olDesrription of Elderly Households in LoSGato5
The number of elderly persons in the Town of Los Gatos has increased slightly
over the last two decades. In 1970, elderly (persons age 65 years and older)
comprised 11 % of the population but, by 1990, that percentage had increased
to 13% of the total population. The total number of elderly persons ages 65 and
over residing in Los Gatos in 1990 was 3,518 persons. With longer life spans
and age expectancies, it is anticipated that the proportion of elderly in Los
Gatos' population will continue to increase in future years.
The 1990 Census data indicate that, of the 3,518 total elderly persons, 3,003
lived in household situations and the remaining 515 persons were living in
group quarters. There were a total of 2,084 households in the Town in which
the primary householder was 65 years or older. These 2,084 households
represent 18% of all Los Gatos households in 1990. The 2,084 households are
equally split between family households (50% of all elderly households) and
non -family households (50% of all elderly households). A significant fact is that
approximately 78% of all elderly non -family household were single females
living alone (821 persons total). These female head of households living alone
represent 23% of all elderly residents.
Approximately 7% of all elderly (242 persons total) had incomes below the
poverty level in 1989, as reported in 1990 U.S. Census data. In comparison to
poverty levels for the total Town population, there is a greater percentage of
elderly persons with incomes below the poverty level than the general
population. Out of the total Town population, 4.5% persons (1,241 persons
total) had incomes below the poverty level.
The majority of Los Gatos elderly households are homeowners. Approximately
69% of all elderly households live in owner -occupied housing units and the
remaining 31% are renters. While renter households represent less than one-
third of all elderly households, these renter households appear to have housing
affordability problems. Approximately 54% of all elderly households (340
households) who rent were paying more than 30% of their income for rental
costs. This differs significantly from elderly households who are homeowners in
Los Gatos. Only 14% of all homeowner elderly households are "overpaying"
for housing (i.e. paying more than 30% of their income for housing costs). In
fact, 72% of all elderly homeowners pay less than 20% of their income for
housing. Clearly, elderly homeowners who rent in Los Gatos are more in need
of affordable housing opportunities than homeowners.
Affordable housing for the elderly has been identified as an important need
throughout the County of Santa Clara. The 1994 document, "Coming of Age in
San Jose/Santa Clara County," identifies housing as the second highest priority
item for senior households. The report, prepared by the Council on Aging of
Santa Clara County and the City of San Jose, documented specific needs of the
elderly. The report indicates that the highest priority need was services for
10
POPULATION AND HOUSEHOLDS
seniors. These included affordable health care, information on senior programs
and services, language and related services for non-English speaking, and
respite for caregivers. The next priority was housing, especially affordable
housing.
Resources Available Elderly Households
There are several affordable housing opportunities in Los Gatos specifically
designed for lower income elderly households. These include:
1. Los Gatos Four-plex, 221-227 Nicholson Avenue
Owned by Mid Peninsula Housing Coalition, this facility
consists of four one -bedroom apartments for lower income elderly.
2. Hartin House, 221 Los Gatos Boulevard
Owned by Community Housing Developers, this group home
houses eight senior women.
3. Villa Vasona, 626 W. Parr Avenue
This facility provides 107 units for elderly and handicapped
households.
4. Terraces of Los Gatos, 800 Blossom Hill Road
A licensed residential care facility for the elderly and a retirement
community care facility, this development provides 29 housing
units and services at reduced rates to eligible senior citizens.
In addition to the facilities listed above, Project MATCH also is operative in Los
Gatos. This non-profit group provides two types of housing services for elderly
households. First, it assists in matching persons who would like to share
housing together. The primary household group assisted is elderly persons
although non -elderly persons are placed in shared housing arrangements also.
In 1996, the maximum rent that most persons matched were paying was $330-
350 per month, although at times some persons were paying up to $400 per
month. On an annual average, Project MATCH has helped 27 Los Gatos
households in securing affordable shared housing arrangements.
Project MATCH also owns or leases single family homes for group housing
situations for independent elderly households. For example, Project MATCH
has group homes in Campbell and Los Altos which provides affordable housing
for elderly households. This non-profit group is interested in expanding its
inventory of elderly group homes and has indicated an interest in securing an
appropriate single-family home in Los Gatos for such a purpose.
POPULATION AND HOUSEHOLDS
2. SINGLE PARENT HOUSEHOLDS
21DesGription Single Parent Households in Los Ci tos
There were a total of 11,323 households in Los Gatos according to the 1990
census data and, of these 11,323 households, approximately 7,269 were
"family" households. Single parent households represented 8% of all family
households. There were 590 single parent households in 1990: 116 single
parent households were headed by a male parent and 474 had a female head
of household. Single parent household as used in this document is defined as
a family household with one or more children under the age of 18 years and
headed by either a female or male head of household, with no spouse present.
Lower household income is one of the more significant factors affecting single
parent households. For example, of all married couples with children under the
age of 18 years in Los Gatos, Tess than 1% of the households had incomes
below the poverty level according to 1990 U.S. Census data. However, 13% of
all single parent households with children had incomes which were less than
the poverty level. Limited household income levels affect the ability of these
households to locate affordable housing and, consequently, this is one of the
more significant housing problems of this household category.
Resources Available Tz2 Single Parent Households
There are no housing developments in Los Gatos that are specifically reserved
for single parent households. However, the 64 unit "Open Doors" rental
development is available to single parent households, as well as other
households, and provides services that can help single parent households. For
example, the "Open Doors" development provides an on -site child care center
as well as affordable rental units that range in size from 2-4 bedrooms.
Project MATCH, described on the previous page, also can match single parent
households with one child in affordable housing situations.
3. DISABLED HOUSEHOLDS
Description cf Disabled Households in Ism Gatos
Disabled households include households who have family members that are
disabled because of physical handicaps or because of mental illness or
disability. It is possible of course that some individuals have both a physical
and mental disability but census data does not provide that level of specificity.
According to the 1990 U.S. Census data, there were 820 persons ages 16-64
years in Los Gatos who had a disability which affected mobility or self care. Of
these, 545 persons had a disability which affected their ability to work.
Information is not available about the type of household they live in, their
income level or how their disability affects their housing needs. Generally,
persons with disabilities have lower incomes especially if their disability affects
12
POPULATION AND HOUSEHOLDS
their ability to work. Housing that is affordable is a high priority for these
individuals then.
Individuals with physical disabilities are in need of housing units that have been
modified to improve accessibility. Examples of modifications that are helpful
include widened doorways and hallways, bathroom and kitchen modifications
(lowered counter heights, accessible tubs/showers and toilets, etc.) entry and
exit ramps, modified smoke detectors and alarm systems for individuals with
visual or hearing impairments, etc.
Resources Available t� Disabled Households
For physically challenged individuals, there are some housing units in Los
Gatos specifically designed to be handicapped accessible. Villa Vasona has
107 units total, of which 9 units are accessible for physically handicapped
individuals. Further, the Town of Los Gatos requires all newly constructed
residential units to be wheelchair accessible.
There are also non-profit organizations that provide services to disabled
individuals in Santa Clara County. These include the following:
Adult Independence Development Center: Provides housing and
attendant care referrals to disabled
Pacific Autism Center for Education: Housing for autistic
Social Advocates for Youth: Housing and counseling for youth
Tri-Aegis Allendale Project: Groups Home for developmentally Disabled
4. OV ER.CROWDE D HOUSE HOLDS
Description pf Overcrowded Households in Los artoo
An overcrowded household is one in which there is more than one person per
room in the living structure (usually "room" is defined as any room in the
structure except for kitchen or bathrooms). On a statewide basis, it was
estimated in 1989 that 7% of all California households lived in overcrowded
housing. (Source: California Statewide Housing Plan Update, 1990, State of
California Dept. of Housing and Community Development)
According to the 1990 U.S. Census, approximately 179 units or 1.6% of the
Town's total occupied housing units were overcrowded with more than 1.1
persons per room. Of these 179 units, 54 were "severely overcrowded" with
more than 1.51 persons per room. The majority (47 units) of these severely
overcrowded units were occupied by renter households. In fact, renter
households have a higher incidence of overcrowding than owner households.
In regard to age of the residential structure, overcrowded households are found
in both older as well as newer housing units in the Town. While 83% of the
overcrowded households live in units that were built after 1940, this proportion
13
l-18
POPULATION AND HOUSEHOLDS
reflects the fact that 78% of the units in the Town were built after 1940.
Therefore, the age of the housing unit is not statistically significant in regard to
overcrowded households in Los Gatos.
Households do not typically choose to be overcrowded but end up in that
situation either because they cannot afford a housing unit that is appropriate in
size to their needs or there is not a sufficient supply of 3+ bedroom units.
Traditionally, large households (households of 5 or more persons) have
difficulty in securing and/or affording housing units of 3 or more bedrooms.
Large renter families, in particular, have difficulty in finding rental housing stock
that is appropriate for their household size and affordable. The 1990 data
indicate that there were 719 households in Los Gatos which had 5 or more
persons. However, in Los Gatos, the majority of the households with 5 or more
persons are owner -occupied households. Approximately 83% of households
with 5 or more persons, or 596 households total, were homeowner households.
Therefore, the assumption is that these are probably family households with 3
or more children at home and that the units they have chosen to buy are
appropriately sized for their household. Overcrowded households then do not
appear to be a significant housing issue in Los Gatos at this time.
5 HOMELESS HOUSE H 1PS
PeScription Households in 1.o5 Gatos
It is very difficult to develop a precise and realistic description of homeless
households in a community. This is due to several reasons but one of the more
significant is the lack of good data on the number and type of homeless
households. The 1990 U.S. Census attempted to identify homeless households
during their "S-Night" count on March 20-21, 1990. During the evening hours of
March 20 and the early morning hours of March 21, census takers attempted to
count the number of persons in emergency shelters and persons visible in
street locations. However, even the Census Bureau cautions users of this data
that the data is not considered to be complete and that there were probably
many more homeless persons than reported in this survey:
One source of data that attempts to describe homeless households is the "1995
Overview of Homelessness in Santa Clara County," a report prepared by the
Santa Clara County Homeless Coordinator's Office. This report presents the
results of a countywide survey of the homeless population undertaken in
January, 1995. That survey resulted in the following information:
• approximately 1,700 homeless persons were estimated to be without
shelter at the time the survey was taken,
• the number of children who are homeless comprised 23% of the total
sample count,
• the number of working homeless has more than doubled from 12%
identified in a 1989 report to 25% in the 1995 report, and
• mental illness and substance abuse are problems that continue to be
a significant factor for the County's homeless population.
POPULATION AND HOUSEHOLDS
The 1995 report further estimates that, based on tumover rates in shelters and
adding in the approximately 9,000 AFDC single head of household with
children who requested homeless assistance for fiscal year 1994-95, there
probably were a total of 16,300 persons in the County who experienced a
period of homelessness for that year.
Most of the visible homeless in the County are the "urban" homeless. Suburban
communities, such as Los Gatos, do not have the visible homeless but may
have invisible homeless who may be camping along creeks or living in their
cars for limited periods of time. Representatives of the Town's Police
Department estimated in 1996 that there were on average less than 5 persons
known to be homeless at any one time in Los Gatos. This would include people
visibly identified as potentially homeless but, of course, does not include
persons living in their cars or camping in hidden locations.
12 Resources Available Tz2. Hornele Households
There are no emergency or transitional shelters in the Town of Los Gatos. The
Town does participate, however, in the Santa Clara County Collaborative on
Housing and Homeless Issues. The Collaborative follows a "Continuum of
Care" approach in addressing the needs of homeless persons. Basically, the
continuum consists of the following steps in providing homeless resources:
i). Prevention Services
ii) Emergency Shelter
iii) Transitional and Permanent Affordable Housing
Listed below is a description of the resources available to Los Gatos
households according to the "Continuum of Care" approach.
i) Prevention Services:
The goal of this first level of resources is to prevent households from becoming
homeless. Households who are "at risk" for becoming homeless are those who
are lower income and who have a difficult time paying for their existing housing.
Traditionally, these include households who "overpay" for housing (paying
more than 30% of their income for housing) as well as households who
experience job termination or reduction or marital separations. Part of the
prevention resources are the provision of emergency food and clothing funds as
well as emergency rent funds and rental move -in assistance.
ii) Emergency Shelters, Transitional and Permanent Affordable Housing
In 1995, there were 1,260 emergency shelter beds and 557 transitional housing
beds in the County. The majority of these are located in San Jose shelters.
There are some facilities in north and south county areas, including Palo Alto,
Sunnyvale, Gilroy and Milpitas. The County's goal is to assist communities in
locating shelters which are accessible to support services and serve the
neediest population bases.
POPULATION AND HOUSEHOLDS
There are no plans to provide an emergency or transitional shelter in Los Gatos
at this time. The Town does contribute financially, however, to supporting the
Emergency Housing Consortium. From 1991-96, the Town has provided
approximately $14,000 in funds to the Consortium. These funds are in addition
to CDBG and other funds provided by the County of Santa Clara to homeless
shelter providers and service providers.
There are additional limited resources in the Town for homeless individuals or
persons threatened with homelessness. Vouchers for food and shelter are
available on a limited basis from the Salvation Army. The Town Police
Department has access to these vouchers as does staff at the Senior
Neighborhood Center. There are also food pantries at several of the local
churches in the community. St. Mary's and St. Luke's are two churches in Los
Gatos that provided food pantries in 1996.
16
CHAPTER 3: HOUSING STOCK
Inventory of Housing Units
As of January 1, 1996, there were 12,235 residential units in Los Gatos
according to State Department of Finance figures. This was an increase of 413
units from 1990 when there was a total of 11,822 units in the Town. Over the six
year period from 1990-96, the 413 units represent an average increase of 68.8
dwelling units added to the housing stock each year. This is in comparison to
the decade between 1980-90 when the average annual increase in dwelling
units in Los Gatos was 95.9 units.
There are several reasons for the decline in housing production in recent years.
First, like many other communities in the San Francisco Bay Area, the 1980-90
decade was a busy and prosperous time for residential development. However,
the real estate market began a "correction" in the late 198Cs and into the 1990s.
Coupled with this was a national credit crunch in the early 1990s, brought on by
the federal re -regulation cf the banking industry in the aftermath of the savings
and loan debacle. This credit "tightening" limited the ability of homebuilders
and apartment developers to obtain the capital they needed to finance new
residential construction. A second and equally significant reason is that the
amount of land available for residential development has decreased, especially
in an essentially "built-up" community like Los Gatos. With Tess land available
fcr residential use, the amount of units expected to be produced decreases
also.
The future production of new housing units in the Town is an important issue.
Availability of land and economic issues are going to continue to be important
variables in determining the rate of new housing produced in the Town.
Additional information on land availability and estimates of new housing to be
produced during the time frame of this Housing Element Technical Appendix
can be found in Chapter 5 ("Future Housing Needs") and Chapter 6 ("Housing
Constraints") of this document.
Housing Units by Type and Tenure
The majority of housing units in Los Gatos are single family units.
Approximately 71 % of the total housing stock in 1996 were single family units
with 80% of those single family units being single-family detached units and the
remainder were single family attached units (e.g. condominium and townhouse
units). Multi -family units in structures of 2-4 units represented 8% of the housing
stock in 1996 and approximately 20% of the housing stock consisted of multi-
family units in structures of 5 and more units. Mobile homes represented 1 % of
the total housing stock.
17
HOUSING STOCK
illustration #6 Housing Stock by Type, Town of Los Gatos, 1996
Mcarle Hanes
5+ Chits
2-4 Units
5rnyie-Famrl y
0 2000 4000 E000 8000 i0000
Sing te-Partin Units
fruits i :;2 4 St Ctures
Units in.:5+ St tr res
l biie.I orales
TOTAL
£rifts
47. Units
2. Units .. ;
47S Units
50 Units.
12285 Units:
It is interesting to compare the change in housing type from 1990 to 1996 in the
Town. The unit type with the greatest increase in the number of units as well as
percentage increase is mufti -family units in structures of 5+ units. There were
378 new units added to the housing stock between 1990-96 in structures of 5+
units. This compares to only 50 new single family units added to the housing
stock in the same time period.
illustration #7 Change in Housing Unit Type, Town of Los Gatos, 1990-96
Type of Unit 199C Total 1996 Total Percentage Orange
Single Family
Structures of 2-4
Units
Structures of 5+
Units
Mobile Homes
8597
880
141
8647
962
150
<1%
9%
18%
6%
HOUSING STOCK
In regards to housing tenure, the majority of units in the Town are owner -
occupied units. Approximately 64% of the occupied units in the Town are
owner -occupied units. The percentage of owner -occupied units in the Town has
increased according to U.S. Census figures. The 1980 U. S. Census data
indicated that 61% of the occupied residential units in the Town were owner -
occupied and the remaining 39% were renter occupied. By 1990, census
figures reflected that those percentages had changed slightly to 64% owner
occupied and 36% renter occupied.
The chart below compares the percentage of owner occupied and renter
occupied units in the Town's housing stock in relation to surrounding
communities and the County as a whole. Los Gatos' homeownership
percentage (64%) falls between the neighboring communities of Campbell
(47%) and Saratoga (89%). In effect, Los Gatos' housing pattern represents a
transition from Campbell's more "urbanized" community with a significant rental
housing stock and yet not as totally suburban in character as Saratoga's
housing stock. In fact, Los Gatos' homeownership rates are very similar to that
of the County as a whole, which is 59%.
Illustration #8 Housing Units by Tenure, Los Gatos and Surrounding
Communities, 1990
% of Renter
Occupied Units
7 of Owner
Occupied Units
Campbell 53%
San Jose 39%
L•0
SDaratoga::...........................................>..11%
Monte Sereno 7%
Santa Clara County 41
Source: U.S. Census, 1990
47%
61%
89%
93%
59%
Most of the owner occupied units in the Town are three bedrooms or larger in
size. Approximately 80% of all owner occupied units are three bedrooms or
larger. The average number of bedrooms in an owner -occupied unit is 3.22
bedrooms while the average bedroom size of a renter -occupied unit in the
Town is 1.85 bedrooms per unit.
Vacancy Rates
Vacancy rates have traditionally been used as a gauge to measure the health of
a community's housing market. Low vacancy rates (typically defined as anything
less than 3% for homeowner units and 5% or less for renter units) can indicate a
HOUSING STOCK
tight housing market with few vacant units which then creates a high demand for
those vacant units.
Data from the 1990 U.S. Census indicate that a total of 549 units were vacant
out of a total housing stock of 11,822 units. This reflects an overall vacancy rate
of 4.6%. Of the 549 units available, 218 units were available for rent, 96 were
for sale. and 30 units were vacant because they were recreational or seasonal
units. The remaining 205 vacant units were classified as "other," which
indicates a number of possibilities. Included in these possibilities is that the unit
was in the process of being remodeled or rehabilitated, the property was in the
process of being converted to another use, or that the census could not
determine the status of the unit from the information available. If the vacancy
rate of the Town was calculated solely on the actual number of units available
for rent or sale (314 total), then the revised vacancy rate for rental units would
be 5.1% and the rate for homeownership units would be 1.3%.
Illustration #9 Vacancy Rates: Owner Occupied and Rental Units,
Town of Los Gatos, 1990
Total # of Units # of Vacant Units Vacancy Rate
Rental Units 4,251 218 5.1%
Owner Units 7,336 96 1.3%
The 1996 Department of Finance figures (State of Califomia) indicate that the
vacancy rate has not changed significantly since 1990. The January 1, 1996
vacancy rate for Los Gatos was 4.64%. This figure is higher than the average
vacancy rate of other incorporated areas in the County which was 3.73%.
These vacancy rates reflect all units, whether owner occupied or renter
occupied.
In looking at multi -family complexes only, it appears that the vacancy rate is
much lower than it is for the Town as a whole. ReaiFacts, a data firm which
tracks rental data for complexes of 40 or more units, reports that the vacancy
rate in multi -family units in Los Gatos has decreased from 2.2% in 1994 to Tess
than 0.5% in 1996.
In a community like Los Gatos which has rent stabilization provisions, the
vacancy rate for rental units becomes an issue of serious concern. The data
from the 1990 U.S. Census and the 1996 Department of Finance estimates
indicate that the Town's overall vacancy rate is within a "healthy" range.
However, the 1994-96 data from Real Facts regarding large mufti -family
complexes would indicate a very low vacancy rate for multi -family, rental units.
This appears to be a recent trend in Santa Clara County, as noted in the report
"No Vacancy: How to Increase the Supply and Reduce the Cost of Housing in
Silicon Valley." (1996) According to data in that report, every community in
Silicon Valley except Campbell has reported a vacancy rate for multi -family
HOUSING STOCK
rentals of Tess than 2%. The report indicates that the decline in rental vacancy
rates in due to a slowdown in multi -family construction coupled with recent and
rapid job growth.
Housing Age and Condition
Approximately 72% of Los Gatos' housing units were built in the three decades
between 1950-80. Only 20% of the 1990 housing stock was built prior to 1949.
This is similar to many other Califomia communities where the years following
World War II saw a massive amount of new residential construction.
Illustration #10 Year Structure Built, Town of Los Gatos, 1990
4000
3000
2000
1000
0
Pre - 1950- 1960- 1970- 1980-
1949 59 69 79 89
Year Residential Structure Built
Pre-1949
1950-59
1960-69
1970-79
1980-89
Number of Units
2,366 units (20% of total)
2,196 units (19% of total)
3,459 units (29% of total)
2,713 units (23% of total)
1,043 units (9% of total)
Source: 1990 U.S. Census
In determining housing condition, there are several levels of analysis that a
community can utilize. A general overview of the condition of the housing stock
can often be determined by looking at census data indicators such as the age of
housing or the lack of complete plumbing facilities in a unit. The next level of
analysis is usually a "windshield survey" of the housing units in which the
exterior condition of housing units is assessed. A third, more detailed and much
more costly analysis is a thorough house by house interior and exterior analysis
of housing condition.
By looking at census data indicators only, Los Gatos' housing stock is not
substantially at risk for having severely deteriorated units. The majority of the
Town's units (80% of all units) were built after World War II and so there are not
significant numbers of very old housing units (50+ years) in the Town. Further,
HOUSING STOCK
the census data indicate that in 1990 only 9 of the City's 11,822 total units
lacked complete plumbing facilities.
During 1983-84, the Town did conduct a comprehensive housing stock
condition survey. Over a one-year period, approximately 90% of the Town's
housing stock was evaluated. The survey results at that time indicated that
there were 433 units (or 4.5% of the total stock surveyed) that were suitable for
rehabilitation. Another 8 units were identified as so substandard that
replacement rather than rehabilitation would be required.
It is important to note also that the 1989 Loma Prieta earthquake affected many
residential units in Los Gatos. The Town monitored the rehabilitation of
approximately 785 residential buildings, distributing over $3,000,000 in State
funds and $300,000 in private funds. Approximately 72% of those units needed
chimney repairs, 27.5% required foundation repair or reconstruction and the
remaining units (0.5%) were found to be in need of demolition.
Financial and technical assistance for housing rehabilitation has been provided
by the Town since 1976. This assistance is provided to low and moderate
income households whose housing units are in need of repair or safety
improvements. As of December, 1995, a total of approximately 325 clients have
been assisted through this program. Demand for the program however has
decreased in recent years. From 1991-May, 1995, a total of 14 units have been
rehabilitated. All of these units were owner occupied units, although mobile
homes and rental housing are eligible for assistance also.
It is important to continue to provide housing rehabilitation assistance for limited
income households, especially as the Town's housing stock continues to age.
In order to increase program activity, the Town should consider implementing a
continuous and systematic marketing strategy to inform property owners of the
availability of the housing rehabilitation program. Further, the Town might want
to target the two mobile home parks in the Town for more in-depth marketing
strategies. The housing rehabilitation program is a valuable asset in the Town's
"tool bag" of resources for conserving existing housing, especially affordable
housing. Therefore, there should be a concerted and continuous marketing
effort to keep residents and property owners informed about the program.
Cost and Affordability of Housing
1. HOMEOWNERSHP
Housing costs continue to be a concern for California communities, especially
in the San Francisco Bay Area. Los Gatos is a very desirable community and,
consequently, the cost of housing is especially high. Unless publicly subsidized
in some manner, homeownership in Los Gatos is available only to households
with high incomes. For example, the median price of a single family detached
home in the Town of Los Gatos for calendar year 1995 was $450,000. For the
same time period, the median price of a condominium or townhouse in Los
HOUSING STOCK
Gatos was $229,000. (Source: San Jose Real Estate Board, June, 1996)
Assuming a standard 20% down payment and an 8% mortgage with a 30 year
term, a household would need to have an annual income of approximately
$132,100 to afford the median sales price of $450,000 for a single family
detached home. The monthly payment for principal, interest, taxes and
insurance is estimated to be $3300 per month and it is assumed that the
household would pay no more than 30% of their income for housing costs.
Using the same assumptions, the household income required to purchase the
medium price condominium or townhome in Los Gatos would be approximately
$67,239 per year. This assumes a payment of $1,681 per month for principal,
interest, taxes, insurance and homeowner association dues.
The information in the paragraph above indicates that households either need a
high household income to afford the median priced housing unit in Los Gatos in
1995 or else would need to have a substantial amount of funds for a large down
payment so that the monthly mortgage costs would be reduced. Low and
moderate income households do not have the household incomes needed to
afford these units and, typically, do not have access to large amounts of funds to
use for downpayments. For example, according to the chart on page 9 of this
document, a four person household with a household income of $42,100 or Tess
would quality as a low/moderate income household. This family could
theoretically be a public school teacher with a spouse and two young children
at home. The maximum house purchase price that this family could afford
would be approximately $143,392. This family could definitely not afford the
single-family detached home in Los Gatos with a 1995 median sales price of
$450,000 or even the median priced condominium costing $229,000.
Illustration #11 Homeowner Affordability, Town of Los Gatos, 1995
School Teacher
Family (Income
Under 8,0% of
Median Income)
Household Who
Could Afford
Median Priced
Condominium
Household Who
Could Afford
Median Priced
Single Family Home
Annual Income
$42,100
'
$67,239
$132,100
Monthly Income
$3,508
$5,600
$11,000
Maximum Monthly Housing
Cost (30% of Income)
$1,052
$1,681
$3,302 -
Taxes and Insurance (% of
Monthly Housing Cost)
20%
20%
20%
Maximum Monthly
Mortgage Payment
$842
$1,345
$2,642
Maximum Mortgage Loan*
$114,714
$183,200
$360,000
Downpayment
20% 20% -
20%
Maximum Purchase•Price _.4143
39Z.; 1$229, 00 w'
'$450;000
*Chart assumes household obtains an 8%, 30 year mortgage with
a 20% down payment.
23
HOUSING STOCK
2. RENTAL H OUSING
As the information on the previous pages indicates, homeownership is usually
out of reach of low and moderate income households in Los Gatos. Rental
housing therefore becomes their only housing resource. But even rental
housing is expensive for limited income households. For example, the 1990
U.S. Census data indicate that the majority of renter households with incomes
under $20,000 were overpaying for housing. Approximately 75% of Los Gatos
renter households with annual incomes under $20,000 were paying more than
30% of their income for housing.
Los Gatos does have a Rent Mediation Program that is applicable to rental
units in structures of 3 or more units. Rent increases are limited to the greater of
either a 5% annual increase or 70% of the Consumer Price Index. Rents can
be further negotiated, however, if the property is sold or if significant capital
improvements are made to the property. The Town's Community Services
Department monitors the program and contracts with Information and Referral
Services to provide mediation services for appeals to the program's rent limits.
Even with the Rent Mediation Program, however, the average monthly rent for a
Los Gatos multi -family unit in 1996 was $1,110. (Source: Real Facts, June,
1996) Rents ranged from an average of $715 for a studio unit to $1,310 for a 2
bedroom/2 bath unit. The chart below compares the amount of money low and
moderate income households theoretically have available for housing costs to
the average rent for a multi -family unit in Los Gatos. The maximum monthly
housing cost is calculated at 30% of household income.
Illustration #12 Rental Housing Affordability, Town of Los Gatos 1996
Very Low
(0-50% of Median)
Lower
(51-80% of Median)
Moderate
(80-120% of Median)
Maximum Annual
Household Income
$33,700
$42,100
$80,900
Maximum Monthly Average Rent for
Housing Cost Multi -Family Unit
$2022/month
Source: Four Person Households, State of California Income
Definitions, 1996
The chart above suggests the four person very low or lower income household
could not afford the average multi -family unit in Los Gatos. If the very low
income household with an annual income of $33,700 chose to rent the average
multi -family unit, they would then be paying almost 40% of their income for rent
(and does not include utilities which will increase the percentage even more).
The household with an income of $42,100 per year likewise could not afford the
24
HOUSING STOCK
average multi -family unit, using a 30% housing cost to income ratio. Only the
moderate income households with incomes of $50-80,000 per year could
theoretically afford the average unit.
In summary, affordable housing is out of reach to low and moderate income
households in Los Gatos. Homeownership in Los Gatos is expensive and
available only to households with higher than average incomes. Without a
public subsidy in some manner, the average homeownership units in the Town
require household incomes of $67,000-132,000 at a minimum depending on
unit type. Moderate income households can definitely "afford" typical rental unit
housing costs, but lower and very low income households have a much more
difficult time. Very low income households, in particular, are much more
challenged in finding a rental unit that is appropriately sized for their household
and affordable too.
25
I-30
CHAPTER 4: EXISTING AFFORDABLE HOUSING
OPPORTUNITIES
Town Housing Programs and Policies
The Town of Los Gatos has historically been very active in developing and
supporting affordable housing programs. For :=xample, in the mid-1970s, the
Town initiated a housing rehabilitation program using federal Community
Development Block Grant (CDBG) funds. The Town continues to provide
housing rehabilitation assistance in a joint effort with the County of Santa Clara
"Urban Counties" program. In 1976, the Town initiated a "Below Market Price"
program which requires a certain percentage of affordable units in new multi-
family rental and ownership projects. Further, in 1994-95, the Town adopted an
"Affordable Housing Plan" for the use of Redevelopment Housing Set -Aside
funds. The Town expects approximately $671,000 in housing funds to be
generated from 1996-99 and to be available to be used for affordable housing
activities.
In addition to designing and administering affordable housing programs, the
Town has also directly assisted in the development of affordable housing units.
For example, in 1993 "Open Doors" was completed and occupied. This is a 64
unit, 100% very low and low income new construction, multi -family project. The
development is unique in that it includes dwelling units ranging in size from 2-4
bedrooms and has an on -site child care center. The Town assisted the non-
profit sponsors with approximately $669,000 in financing to help with pre -
development and acquisition costs. This is a recent example of the level of
commitment provided by the Town to increase the supply of affordable units,
especially units affordable to families.
This Chapter of the Housing Element is intended to summarize the type of
housing programs and affordable housing opportunities available in Los Gatos.
Illustration #13 on the following page provides a graphic summary of the type of
housing programs available in Los Gatos as of Fall, 1996. More detailed
information on each of these programs is then provided on the pages that
follow.
EXISTING AFFORDABLE HOUSING OPPORTUNITIES
Illustration 113 Housing Programs, Town of Los Gatos, 1996
Name of Type of Assistance Administered by: Funding
Program Source
.:....C. ii9i: :.:.�::•,jy);.: �.�:.::::.... J:... •::::,i;;ifiry' iff��•i?T'�:<�•r'..:i4)S'(GCi•':iiY: Y. :..i:iiiiiiiiii.�:.�.
):h:'vv •%{{4i:Q:i^;!:C:>O....i......�Q.......:�...:.�....n......}}. �4fv: 4:}.�iv 'T::.:S,h.`,G^.ti•:•::}.'..��6.tS;n:4.::u..:f.;{{.±Y:vfG'i}i:{:^:ii::i:::5. .
row �r�M� .. t :..: ;:�:, ti�
Below Market
Price (BMP)
Requires new residential
developments to provide
a certain number of
affordable units or to
contribute "in -lieu" fees
instead of units
Town of Los Gatos:
Planning Department
and Community
Services Department
Program
Administra-
tive Costs
Paid with
"In -Lieu"
Fees
Density Bonus
Program
Allows additional units to
be built in a residential
development if housing
is restricted to senior,
disabled or lower
- income households
Town of Los Gatos:
Planning Department
and Community
Services Department
Not
Applicable
Affordable
Housing Fund
Funds available to
provide affordable
housing assistance such
as reducing costs of
housing, landbanking,
etc.
Town of Los Gatos:
Planning Department
and Community
Services Department
BMP In -Lieu
Fees,
Redevelop.
Housing
Funds,
Program
Income from
past
CDBG
Activities
Redevelop-
ment
Housing Plan
Provides strategies and
funds for the
preservation and/or
development of
affordable units
Town of Los Gatos:
Planning Department
and Redevelopment
Agency
Redevelop.
Housing
Funds
(Tax Incre-
ment Funds)
Federal
CDBG
Funds
Housing
Conservation
Program
Funds available to
rehabilitate rental and
owner occupied housing
units in Los Gatos
Town of Los Gatos:
Community Services
Department
Rent
Mediation
Program
Monitors and regulates
annual rent increases in
multi -family structures of
3 or more units
Town of Los Gatos:
Community Services
Department
Not
Applicable
EXISTING AFFORDABLE HOUSING OPPORTUNITIES
illustration *13 Housing Programs, Town of Los Gatos, 1996
(Continued)
Name of
Program
Type of Assistance
Administered Funding Source
by:
Mortgage
Credit
Certificate
For low and moderate
income
homepurchasers, the
MCC allows a tax credit
for federal income tax
purposes and allows
purchasers to qualify for
a larger mortgage
amount
County of
Santa Clara:
Office of the
County
Executive
No direct federal
funds are involved;
program relies on
tax credits taken
against federal
income tax owed
Shared
Housing
Program matches senior
households with other 1
or 2 person households
for the purpose of
sharing housing costs
and space
Project MATCH
Federal CDBG
funds are used to
fund administrative
costs of Project
MATCH
o txg: �s a its. cri ptia o the hour r g programs sutttm �# i
able above and on fine previous Pa e.
Town Housing Programs
1. BELOW MARKET PRICE (BMP) PROGRAM
One of the most significant housing programs adopted by the Town is the
"Below Market Price" (BMP) Program. The BMP program was initiated in 1979
as a mechanism to increase the supply of housing affordable to individuals and
families with low to moderate incomes. The BMP program requires that a
certain number of units in new residential developments be designated for low
and moderate income occupancy. The exact number of units required is
established by Ordinance and depends on the type and size of the
development. For example, projects of 5-19 market rate units must provide a
number of BMP units equal to 10% of the market rate units. Certain projects
may contribute an in -lieu fee instead of constructing actual units. The in -lieu fee
is then deposited in the Town's Affordable Housing Fund.
The current (1996) inventory of BMP units in the Town is 16 owner -occupied
units, 4 rental units and 29 rental units at a continuing care facility. In addition,
there are 10 owner occupied BMP units either under construction or anticipated
EXISTING AFFORDABLE HOUSING OPPORTUNITIES
to be completed by mid-1997. BMP ownership units are initially sold at
affordable prices to low and moderate income persons and certain restrictions
are recorded with the grant deed to ensure that there will be continued
occupancy and ownership of the unit by low and moderate income persons.
The deed restrictions are designed to ensure that the units, even on resale, will
remain affordable. When a BMP owner wishes to sell the unit, he or she must
give the Town the right of first refusal to purchase it. The Town has six months in
which to find a new purchaser. There have been problems experienced in
recent years with the resale procedure and, unfortunately, 2 BMP units have
been lost from the inventory due to these problems. This issue and suggested
corrective actions are discussed in more detail on page 63 of this document.
Community Housing Developers maintains a waiting list of people interested in
purchasing a BMP unit. In order to participate in the BMP, applicants must have
incomes that do no exceed annually established income limits. Further, there
are priority points awarded to certain household types such as elderly, disabled,
Town employees, Town residents, etc. Applications for the BMP Program can
be obtained at 'Community Housing Developers' offices whose phone number
is listed in Appendix 3 of this document.
2. DENSITY BONUS PR.OG RAM
The Town's Density Bonus Program provides a density bonus of up to 100% of
the units permitted by the land use designation for housing restricted to seniors,
disabled persons, very low and low income households. From 1985-90, 115
density bonus units were approved. From 1990-96, 27 additional units were
approved because of the density bonus program.
3. AFFORDABLE HOUSING FUND
The Town maintains a "BMP In -Lieu Fund" which had a balance of
approximately $144,000 at the end of 1995. The fund has been used to pay
administrative costs of the BMP program and has not yet been used for any
specific affordable housing program or project. However, it is expected that this
fund will increase substantially during the time frame of this Housing Element to
over $500,000 because of payments expected from the Kennedy Estates
development. One of the recommendations included in this 1996 Housing
Element Update is to further strengthen the fund by adding Redevelopment
Housing funds to the fund balance and to build new units affordable to very low
and low income households with fund proceeds.
4. R.EDEVELOP MENT HOUSING PROGRAM
In 1991, the Town adopted a Redevelopment Plan for the Central Los Gatos
area and, in 1992, began implementation activities in that area. According to
State law, approximately 20% of tax increment funds generated in a
Redevelopment area are to be used for affordable housing. Communities with
EXISTING AFFORDABLE HOUSING OPPORTUNITIES
redevelopment activities must also develop a written plan that identifies goals
and projects for the use of those funds.
The 20% tax increment funds are an important housing revenue source for a
local community. Communities have a great deal of flexibility in using those
funds as compared to State or Federal housing funds which may have detailed
eligibility and use restrictions. Los Gatos' Redevelopment Agency estimates
that from 1994-99 the Town's Redevelopment Housing Fund will generate
approximately $671,000 in revenues to be used for affordable housing.
It is recommended that the Town consolidate the Redevelopment Housing
Funds with the funds in the Affordable Housing Fund in order to develop a
unified source of funds for the development of affordable housing in the Town.
Further, after reviewing housing needs as identified in this 1996 Housing
Element Update, it is recommended that the primary use of the Affordable
Housing Fund (which would include Redevelopment Housing Funds) be for the
development of new units affordable to very low and low income households.
As part of the 1996 Housing Element Update process, the Town's 1994
Redevelopment Housing Plan was reviewed. A copy of the review is included
in Appendix #1 of this document (the 1996 Housing Element Update) and it
contains suggested revisions to the 1994 Redevelopment Plan in order to bring
it into compliance with State law and with the housing issues and needs as
identified in the 1996 Housing Element Update.
a HOU SING CON SE RYATION P ROGRAM
In 1976, the Town initiated a program that was designed to assist in the
rehabilitation of housing units occupied by lower income households. The
program has continued to operate since 1976 and currently the Town provides
both financial and technical assistance to owners of units occupied by lower
income households. The Town provides both loans and grants to assist in
financing repairs to correct health or building code violations, handicap
accessibility modifications, earthquake safety or alleviate overcrowded
situations through additional bedrooms or baths.
Since 1988, approximately 16 homeowner households have been assisted
through the program. There have been no rental units assisted by the program
since 1988 but there were rental units rehabilitated with program funds prior to
1988. It is anticipated that approximately 6 units per year will be assisted
through the program from 1996-99.
6. RENT M ED1AT1ON P ROG RAM
The Rent Mediation Program monitors rent increases in multi -family housing
developments of 3 or more units in the Town. The administration of the program
is contracted out to a local non-profit organization, Information and Referral
Services.
EXISTING AFFORDABLE HOUSING OPPORTUNITIES
Generally, rent increases are limited annually to the greater of 5% or 70% of the
Consumer Price Index for that year. However, if repairs are made to the
property or if the property is sold, additional rent increase can be allowed. Staff
at Information and Referral Services work with property owners in determining
appropriate rent increases. Further, staff can also provide information and
mediation services in regard to certain type of tenant -landlord issues.
Federal and State Housing Resources
tCOMMUNrTY DEVELOPMENT BLOCK GRANT FUNDS
The Town of Los Gatos is one of 15 member communities in the Santa Clara
"Urban County." Members of the Urban County are eligible to receive federal
funds that can be used for affordable housing. The two most common sources
of federal funds used for housing directly by communities are CDBG
(Community Development Block Grant) funds and HOME funds. Six of the 15
Urban County communities receive CDBG funds directly from the federal
government. The remaining 9 communities (of which Los Gatos is one)
participate in the CDBG program as a group, with the County of Santa Clara as
the lead agency.
The primary activity that Los Gatos has funded with their share of CDBG funds
is the housing conservation program, which is described above. The Town has
also used CDBG funds to provide accessibility improvements and grants to
public service agencies. In addition, CDBG funds are used countywide to
provide funding to agencies which also serve Los Gatos residents. This
includes Project MATCH (shared housing) and Emergency Housing
Consortium (Homeless and transitional housing assistance).
2. MORTGAGE CREDIT CERTIFICATE PROGRAM
The Town participates in the Mortgage Credit Certificate Program through the
County of Santa Clara. This program provides an opportunity for low and
moderate income households to receive a federal tax credit for the purchase of
a housing unit. This tax credit then theoretically allows the household to have
more income available to afford their mortgage payment. From 1988-96,
approximately 51 Los Gatos households have utilized Mortgage Credit
Certificates.
31
EXISTING AFFORDABLE HOUSING OPPORTUNITIES
3. SHARED HOUSING PROGRAM
The Shared Housing Program is operated by Project MATCH, a local non-profit
agency. (Please see Appendix 3 of this document for Project MATCH's phone
number.) The Program brings together people who need housing with those
who have housing to share. The primary emphasis is on senior households
although seniors can be matched with other non -senior households. Staff at
Project MATCH conduct interviews with potential clients, conduct need
assessments, match compatible clients, develop "living together agreements,"
and also conduct follow up to ensure a good match relationship. The goal is to
provide housing that is affordable and compatible for both households.
From 1990-95, approximately 163 Los Gatos residents were assisted through
Project MATCH. Over 95% of the matches were single -person households,
predominantly females. Of the 163 Los Gatos residents assisted, 97 were
homeseekers and 66 were home providers. Project MATCH participates in the
"Homeless Prevention Program" (HPP) and reports that 33% of the Los Gatos
homeseekers were HPP clients. The type of household served by Project
MATCH is typically lower income. In fact, the average income of the Los Gatos
resident assisted in the program from 1990-95 was $1311 per month.
..y:-:::::-;}:::.:.::•: :i3,.'�."!�i•:'-:::. �: :::: ::nlyo
:::::n;'.t:.:':::..;
s = Vices t o affv n` a cha
EXISTING AFFORDABLE HOUSING OPPORTUNITIES
Illustration #14 Affordable Housing Unit Inventory, Town of Los Gatos'
Project Name Ownership Type of Number
Affordable Units/ Affordable
Funding Source. Very
If Applicable Low In.
.. :::..q k:::: t..:��i..��- ,:Yv;�•.'' :.;2}::,''''' • •-•n•:., ,--k/::•'::y�' :.-N.;k...: iy' . :Cisx{r"v:.}i-:.,}
: ti:`•?v' }Vvwl '# X{:•i : m{iY.'v :k? $.4 .{i{•-{{:fn.,.f..?7Y1,.?-
: r.t '.:. �DY 4}
':.i::•'::•:}:i:'i..�r„w.�r}•-.AnAG'f3 ':'.: q} : '%. � S 'Q ��}': tiy}..v.: •:•.n�.......
flu $� .... ...:
�• } Yy z : ,
and Type of
Units:
Lower Moderate
Income Income
.7 L\'.; Y.';ri^:Tr:::'
Forbes Mill
Private
•weer Occupied 0
3
0
Arroyo Rinconada
Private
Owner Occupied
0
3
1
Court -,style
Private
Owner Occupied
0
2
3
Pollard Oaks
Private
Owner Occupied
0
0
2
Fountain Lane
Private
Owner Occupied
0
0
1
Town Court
Private
Owner Occupied
0
0
1
The Terraces
American
Ba•tist Home
Renter Occupied:
Elder/
0
29
0
Beckwith A.ts.
Private
Renter Occupied
0
2
0
Los Gatos Oaks
Private
Renter Occupied
0
2
0
03
apteX
{
°,f'
<
Mid-
Peninsula
Housing
Coalition
Renter Occupied:
Elderly
Section 8:
Moderate Rehab
4
0
0
u':': '
> :>< A' A• �,
''
{„Y .k
i i Nib: •
Community
Housing
Developers
Renter -Occupied:
Group Home for
Elderly Females
Section 8:
Moderate Rehab
8
0
0
$= : ->r
,:i: ' ]`i%,..
,�,.-k:.fig .�:.;•:>:n:-��:�'��
:....:::
Community
Housing
Developers
Renter -Occupied
State, Local and
Private
Financin •
0
4
0
:�.�.:h>'
S:fl:.. `,.s{
?;<< �z?n:,? '
Mid-
Peninsula
Housing
Coalition
Renter Occupied
Low Income Tax
Credit, State and
Local Financin•
60
4
0
'>«<
<<>y
a
PMG
Properties
Renter Occupied:
Elderly and
Handicapped
Section 8: New
Construction
107
0
0
TOTAL UNITS
179
49
8
"Notes: 1. Table reflects units built and occupied as of June, 1996
2. State of California Income Definitions Used (see page 9 of this
• document for definitions)
33
—38
CHAPTER 5: FUTURE HOUSING NEEDS
According to State Housing Element Guidelines, Housing Elements should
include an analysis of the number of housing units to be built, rehabilitated
and/or conserved in order to meet the community's current and future housing
needs. Following is an analysis of Los Gatos' new construction, rehabilitation
and conservation needs.
New Construction Needs
The Association of Bay Area Governments (ABAG) has developed estimates of
housing need for communities in the San Francisco Bay Area. The ABAG
document, "Housing Needs Determination" (January, 1989), provides
information which identifies regional housing needs and responsibilities and
provides communities with estimates of projected housing needs from 1988-95.
The estimates were developed by taking into account the following six factors:
• market demand for housing,
• employment opportunities,
• availability of suitable sites and public facilities,
• commuting patterns,
• type and tenure of housing, and
• housing needs of farmworkers.
Using available data and projections based on future employment and
population trends, the 1989 ABAG document estimates that the total projected
housing need for Santa Clara County is 73,138 new units for 1988-95. Los
Gatos' share of that total need is 553 units or less than 1% of the County's total
need.
The ABAG estimate of new units needed in Los Gatos was originally developed
for the period from 1988-95. At the time that the estimate was produced in
1988, it was assumed that ABAG would issue new figures for the time period
after 1995. Due to various reasons, however, ABAG has not produced new
figures. The State of Califomia has therefore extended the time frame from
1995 to July 1, 1999 for ABAG communities and communities are to continue to
use the original 1988-95 estimates in estimating new construction need.
Therefore, the new construction need estimate for Los Gatos for the time period
from 1988-99 continues to be 553 units.
In addition to projecting overall new construction needs, the ABAG Housing
Needs Plan further quantifies housing needs by income category. The intent of
this action is to more equitably distribute the type of households by income
category throughout a region so that no one community is "impacted" with a
particular household income group. The table on the following page indicates
the distribution of the 553 projected units by income category.
FUTURE HOUSING NEEDS
Illustration *15 Al3AG New Construction Need by Household
Income Level, Town of Los Gatos 1988-99
Type of Household by
Income Level
1988-99
Need
Very Low Income
0-50% of Median Income
105
Low Income
51-80% of Median Income
83
Moderate Income
81-120% of Median Income
111
Above Moderate Income
120%+ of Median Income
254
TOTAL
t NEEDADDRE9ED TO DATE (JANLIARY1,1988- JAN1L6J Y1,1996)
On January 1, 1988, there were 11,740 housing units in Los Gatos according to
the State of California, Department of Finance. The same data source reports
that there were 12,235 housing units in the Town as of January 1, 1996.
Therefore, there have been a total of 495 units added to the housing stock
during the time period of January 1, 1988 to January 1, 1996. These 495 units
represent 89.5% of the Town's total new construction need of 553 units.
Because the new construction need was developed based on sub -components
of household income level, it is important to review the breakdown of the 495
new units by household income level. Following are the new units added to the
housing stock in Los Gatos between 1988-96 that can be identified according to
affordability by specific household income levels.
Very Low Income: 60 Units- Open Doors
Low Income:
Moderate Income:
4 Units- Open Doors
29 Units- The Terraces
4 Units- Below Market Price Rentals
(Beckwith and Los Gatos Oaks)
2 Units- Below Market Price Sales
(Vasona Hills)
39 Units TOTAL
5 Units- Below Market Price Sales
Nasona Hills, Town Court and
Fountain Lane)
FUTURE HOUSING NEEDS
In addition to the new units created in the housing stock, there were some
affordable units created from the existing housing stock. These were units
purchased by moderate income households using Mortgage Credit Certificates
(MCCs). From 1988-96, 51 Los Gatos households used MCCs to purchase an
existing unit in Los Gatos.
Illustration *16 Revised ABA& New Construction Need
6y Household Income Level, 1988-99
Type of Household by
Income Level
1988-
1999
Need
106
New Units Assistance
Produced, to Existing
1988-1996 Units
Revised
Need,
1996-99
45
Very Low Income
0-50% of Median Income
60
I
Low Income
51-80% of Median Income
Moderate Income
81-120% of Median Income
111
I
44
5
IIIM
55
Above Moderate Income
120%+ of Median Income
TOTAL
54
•
0
553
495
51
144
As the chart above indicates the revised need for 1996-99 is 144 units. All of
the units needed are very low, low or moderate income units. The Town has
met and exceeded its need for above moderate income housing and has no
further identified need for that type of housing.
Rehabilitation Need
The Town's rehabilitation need is low, compared to many other California
communities. As discussed earlier in this document in Chapter 3 (pages 21-
22), the majority of the Town's housing units were built after World War II and
there are not significant numbers of very old (50+ years) units in the housing
stock. In 1983-84, the Town completed a survey of the Town's housing stock
which indicated that 433 units, or 4.5% of the total stock surveyed, were suitable
for rehabilitation. It is estimated that this percentage has not increased since
that time and has probably decreased to below 4.5%. This is due to the fact of
Los Gatos' desirability as a place to live and the popularity in recent years of
middle and higher income households buying older homes and repairing them.
The 1989 Loma Prieta Earthquake did affect the housing stock with an
estimated 785 residential units needing some type of repair as a result of the
36
FUTURE HOUSING NEEDS
earthquake. Most of those repairs have been completed and, consequently,
there is not currently a need for any additional assistance for those units.
The Town does have two mobile home parks which contain units which may
benefit from health and safety repairs, as well as accessibility modifications.
Although there are not significant numbers of mobile homes in the Town (the
two mobile home parks represent 1 % of the Town's total housing stock), the
mobile home parks do provide an affordable housing resource especially for
lower income residents.
Conservation of Affordable Units Need
Conservation of the existing affordable housing stock is critical in today's
economic climate. Because of the high cost of providing affordable housing, it
is extremely important to preserve and protect those affordable housing units
which already exist in a community. State Housing Element Law requires
communities to conduct an inventory of affordable units that might be "at risk" of
converting to market rate units within a 10 year time frame of the Housing
Element. The inventory is to include all multi -family rental units that have been
funded with federal, state or local assistance. The table on the following page
identifies multi -family rental units in the Town that have some type of public
assistance.
FUTURE HOUSING NEEDS
Inventory of Publicly Assisted, Mufti -Family Rental Units, Town of Los Gatos, 1996
Illustration #17
Comments
The Terraces is a residential care facility for the elderly. In 1993, the owners
signed an agreement with the Town to provide 29 units at reduced prices for
lower income (80% of median and below) households. The BMP program
requires that the units be provided "in perpetuity." The units at this time are
therefore not at risk of losing their affordability status.
In 1982, Mid -Peninsula Housing Corporation acquired and rehabilitated this
fourplex. The primary funding was a 15 year Section 8 Moderate
Rehabilitation assistance. This assistance provided funds for the
rehabilitation as well as a 15 year rent subsidy. The assistance will expire
April 25, 1997.
This group home for 8 elderly single female households was acquired and
rehabilitated by Community Housing Developers. The Section 8 Moderate
Rehabilitation assistance, which includes rent subsidies, is due to expire in
2003.
This fourplex is owned and managed by Community Housing Developers.
The public financing assisted with acquisition and rehabilitation costs. There
are no on -going project -based rent subsidies. The project at this time is not at
risk of losing its affordability status.
Open Doors is managed by Mid -Peninsula Housing Corporation and is
owned by a limited partnership of which Mid -Peninsula Open Doors
Corporation is the General Partner. This project, occupied in 1993, received
Low Income Housing Tax Credits for all of the 64 units and State Rental
Housing Construction funds for a portion of the units. The project is not at risk
of losing its affordability status at this time.
This 107 unit elderly and handicapped development was occupied in 1984
with a 20-year Section 8 construction and rental subsidy agreement. The
rental subsidies will expire in 2004.
CO
v
4
m
�E ,0
m
U
•C
a. E
c 3 me12
3 0 of
o
Section 8
Moderate
Rehab.,
Town Loan,
State loan
Section 8
Moderate
Rehab.,
Town Loan
Town loan,
State loan,
Private
Financing
Federal Low
Income
Housing Tax
Credits,
State and
Town assist.
Section 8
New
Construc.
Qo
B[Z
0
Z
0
Z
0
4-+�
U
-�
z
en
0
CD0
I--F-
x
m
ofl-
�' 7
JC�ti
m
cm
O
SS
0
>m
~
�LLW.Q.
m
cq��
a 0
OD
Villa
Vasona
FUTURE HOUSING NEEDS
As the table on the previous page indicates, there are three housing
developments in Los Gatos that are "at risk" of losing their affordability status.
These include the Los Gatos Fourplex (Nicholson Avenue), Hartin House and
Villa Vasona. Each of these developments is discussed in the paragraphs
below.
t LOS GATOS FOURPLEXAND HARTIN HOUSE
These two projects are similar in that they are small projects whose owners are
non-profit agencies and both have Section 8 Moderate Rehabilitation as their
major funding source. The Los Gatos Fourplex is located at 221-227 Nicholson
Avenue and is owned and managed by the Mid -Peninsula Housing Coalition. A
major funding source for the fourplex has been the Section 8 Moderate
Rehabilitation Subsidy, which is due to expire on April 25, 1997. This funding
has provided a rent subsidy (Section 8) to the four tenants in order to help them
afford the rent. The non-profit owner uses the rental income to retire the debt on
the property which includes a private bank loan, a State loan and a CDBG loan
from the Town of Los Gatos. Mid -Peninsula Housing Coalition is aware of the
expiration of the Section 8 subsidy and is attempting to negotiate with the Santa
Clara County Housing Authority to renew the Section 8 subsidy for at least
another 5 years. It is unknown at this time if that attempt will be successful.
Should it not, the Town needs to be prepared to re -negotiate the financing of its
loan on the property as well as assisting the owner in re -negotiating the other
loans if necessary to keep the property affordable.
Hartin House, located at 221 Los Gatos Boulevard, is a group home for eight
single women. The project is owned and managed by Community Housing
Developers. The Section 8 Moderate Rehabilitation subsidies for this project
are due to expire in 2003. Therefore, the concern is not as great at this time for
Hartin House as it is for the Los Gatos Fourplex in that the subsidy is not due to
expire for another 7 years from 1996. The Town needs to be aware of this
expiration date, however, and monitor the status of the project as the year 2003
approaches.
2. VILLA VASONA
Villa Vasona, a 107 unit elderly and handicapped development, is located at
626 W.Parr Avenue. It is owned by PMG Properties and was originally financed
with CDBG funds from the Town of Los Gatos as well as Section 8 New
Construction funds. The Section 8 funding provided a rental subsidy guarantee
to all 107 tenants that will expire in 2004.
As part of its agreement with the original owners of Villa Vasona, ownership of
the development was to be transferred to the Town 65 years after the
completion of development (approximately year 2049) for $1.00. Further, the
agreement specifies that there are no rent limits set in the event that Section 8
rent subsidies expire. The agreement does state that if the subsidy does expire,
FUTURE HOUSING NEEDS
the development is to continue renting to elderly and handicapped residents of
low and moderate income, as defined by HUD regulations. As the year 2004
approaches, the Town will need to review this agreement. Specifically, while
the agreement may specify that units have to be rented to low and moderate
households, it is unclear whether the rents will have to be affordable to low and
moderate income households. The affordability of the units is as important as
the occupancy of the units and the continued affordability of the units should be
preserved as much as possible.
3. COST OFAC.QUIRING/REPLACING "AT RISK" UNITS
It is very expensive to acquire or replace existing affordable units to prevent
them from becoming market rate units. Communities need to do everything
possible to preserve the existing affordable units in the housing stock because
the costs are so high to acquire or replace the units. An estimate of the cost of
acquiring the existing affordable units in Los Gatos is provided below.
In estimating the cost of acquiring or replacing affordable units, it is helpful to
look at "real -life" examples. Because there have been no conversions in Los
Gatos in recent years, there are no local examples to utilize. However, the City
of Palo Alto is a nearby community with a real estate and housing market similar
to Los Gatos. In 1995, the City staff assisted a non profit owner to acquire,
rehabilitate and conserve the Arastradero Park project, which was an existing
affordable housing development that was at risk of being converted to market
rate housing. The average cost to acquire, rehabilitate and conserve an
Arastradero Park unit for lower income use in 1995 was $137,505 per unit. This
included an average of $106,500 per unit for acquisition alone and another
$12,000 per unit for rehabilitation costs.
The $137,505 per unit cost would be appropriate to use as a comparison for
Villa Vasona in that both projects are large, multi -family rental developments.
The $137,505 figure may be too high for Hartin House and the Los Gatos
Fourplex because these are much smaller projects and different types of real
estate (a group home and a fourplex). Therefore, it is estimated that the
fourplex would probably require $100,000 per unit to acquire/replace and the
group home would range from $300,000-400,000 to acquire or replace.
illustration #13 Cost Analysis to Acquire/Replace "At Risk" Units
Expiration Pate of
Project Subsidy
1997
2003
2004
Name of Project
Los Gatos Fourplex
Hartin House
Villa Vasona
TOTAL
Estimated Cost of
Conserving/Replacing Units
$400,000
4 units @ $100,000 each
$350,000
14,713,035.00
15,463,035 00:.
FUTURE HOUSING NEEDS
The above analysis indicates that it would cost over $15 million dollars to
conserve the at risk units as lower income units. It is estimated that the cost to
replace the units with newly constructed units would be even greater due to
such factors as land acquisition costs, infrastructure and building costs, project
processing costs, etc.
Potential funding sources to pay for the cost of conserving these units are
limited. Possible funding sources would include the Town's Affordable Housing
Fund, Community Development Block Grant funds, bond financing, reserve
funds from the Santa Clara County Housing Authority and Affordable Housing
Program Funds from the Federal Home Loan Bank. All of these funding
sources are limited, however. Even if some of these funds were secured, the
overall cost of conserving these units is staggering for a community the size of
Los Gatos. It is hoped that the above analysis is indeed a "worse case" scenario
and that these units will remain in lower income usage without a threat of
conversion to market rate housing.
CHAPTER 6: HOUSING CONSTRAINTS
Housing development can be affected by economic forces in the private market
as well as regulations and policies imposed by public agencies. These
constraints primarily impact the production of new housing but can also affect
the maintenance and/or improvement of existing housing. The discussion
below and on the following pages analyzes both the governmental and non-
governmental ("market") constraints that can affect the housing market in Los
Gatos.
Governmental Constraints
1. LAND USE CONTROLS
The Town's General Plan and Zoning Ordinance are the primary tools which
are used to manage the development of residential units in Los Gatos The
Town's General Plan allows for residential land use ranging from "Hillside
Residential" (a maximum of 1 unit per acre) to "High Density Residential -
Special Use" with a maximum density of 20+ acres per unit. The Zoning
Ordinance is more specific and continues these same general density
parameters but with more specific residential zone districts. In specific, the
Zoning Ordinance allows for the following residential zone categories:
1. Hillside Residential (HR)
2. Single Family Residential (R-1)
3. Single Family Residential, Downtown (R-1 D)
4. Duplex Residential (R-D)
5. Mobile Home Residential (RMH)
6. Multiple Family Residential (RM)
The Zoning Ordinance also allows for Planned Development (PD) overlay
zones. When a PD overlay is applied to a residential zone for an affordable
housing development, the affordable housing requirement becomes a part of
the overlay conditions. For example, the Open Doors development was
rezoned to a Planned Development and the requirement that the property be
used for affordable housing is a condition of the PD overlay.
Permitted densities, setback requirements, minimum lot sizes and other factors
vary among the residential districts. The table on the following page describes
each of the residential zone districts in Los Gatos and some of the more
significant factors of each district.
HOUSING CONSTRAINTS
illustration *19 Description of Residential Zone Districts,
Town of Los Gatos
District Name
HR Hillside
Residential
Description of Residential Zone
This is a very low density district which provides guidance for the
development of parcels in the hillsides surrounding the southern
edge of the Town. The maximum dwelling unit per parcel is one
unit.
R-1 Single
Family
Residence
District
The R-1 district is intended for single-family residential use.
. Typically, only one unit is allowed per R-1 lot although, under
certain conditions, secondary dwelling units may be allowed in
addition to the primary unit. Generally, the minimum lot size is
8,000 square feet. However, there are certain areas of the Town
where the minimum lot sizes are smaller, particularly in the
downtown single family residential district (R-1 D). Maximum
building coverage in R-1 zones is 40% of the lot.
R-D Duplex
Residential
District
The R-D district allows for two family dwellings that are
compatible with single family dwelling areas. Also allowed within
the R-D district are small family day care homes and residential
care facilities: small family home. The minimum lot area is 8,000
_ square feet and the maximum building coverage on a lot is 40%.
RMH Mobile
Home
Residential
There are two mobile home parks in the Town which have an
RMH zoning. These include the Bonnie View Park on Oka
Avenue and the Los Gatos Mobile Home Park on Woodland
Avenue. In addition to this zoning district, the Town Code also
includes a Mobile Home Park Conversion Ordinance which
specifies conditions on which the use of this property can be
changed.
RM Multiple-
Family Density
Districts
Generally, the RM district allows for multi -family residential use of
5-20 units per acre. This density, however, can be increased
depending on whether density bonuses are used or if a Planned
Development overlay is placed on the property. For example, the
Terraces development (Blossom Hill Road) is located in a multi-
family zone district but it has a "special use' designation on the
General Plan map which allows for a density higher than 20 units
per acre.
The maximum height of any principal building in an RM zone is
30 feet, except that buildings with cellar parking can have heights
up to 35 feet. The maximum building coverage allowed on the lot
is 40%.
2.LOCAL PROCE55INGAND PERMIT P ROC ED URE 5
There are various levels of review and processing of residential development
applications, depending on the size and complexity of the development. Minor
applications can usually be handled on a staff level, subject to the approval of
HOUSING CONSTRAINTS
the Planning Director. More complicated applications, such as subdivision
Commission and Town Council and possible review by other Town bodies such
as the Conceptual Development Advisory Committee.
A typical multi -family residential application usually takes six to eight months to
process, from application submittal to building permit issuance. This time
period of course is subject to the completeness of the application as well as
other mitigating factors, such as the requirements of environmental review.
3. LAND DEVELOPMENT FEES
Since the passage of Proposition 13, there has been a dramatic increase in
fees charged for development projects. Not only have local governments such
as Los Gatos had to increase their fees, but special districts such as school
districts, utility districts, transportation agencies, etc. have also had to begin
charging fees or increasing their fees. Local govemments often have no control
over the fees charged by these special districts. For example, residential
development is often especially impact by the fees charged by school districts to
off -set their loss of property tax revenues due to Proposition 13. In Los Gatos,
the school impact fee is approximately $1.60-$2.00 per square foot, depending
on the school district in which the property is located.
In Los Gatos, staff from the Planning and Building Departments estimate that a
typical new, single family residential unit of approximately 3,000 square feet
would generate fees of approximately $20,000-25,000. This includes planning
department application and processing fees, building department plan check
and permit fees, associated engineering fees, school impact fees and traffic
impact mitigation fees. Multi -family units on average would generate fees less
than this per unit because some of the more significant fees are based on per
square foot charges rather than per unit costs.
4.LAND AVAILABILITY
Los Gatos is basically a "built -out" community with very few large parcels of
vacant land that are developable. In 1996, the Town Planning staff conducted
a computer search of vacant parcels by zoning category in order to determine
an approximate number of units that could be developed. That inventory
indicates that there was 145.86 vacant acres zoned at residential categories
that could yield a range of 132-616 units. There are also another 144.33 acres
of vacant land that are currently on parcels zoned in a non-residential
classification. The majority of this vacant, non-residential zoned land is in the
"Resource Conservation" (RC) district. While not included in the building unit
estimates above, it is possible that some of this land (i.e. University of Califomia
land) could be developed with a limited amount of residential units.
The inventory is reproduced on the following page.
HOUSING CONSTRAINTS
llluatratfon #20 inventory of Vacant Land by Zoning Category, 1996
Zoning Category Acreage
Available
Potential
Units
_
.
. : .; ,moo: 4 rfiC•,',,+' `.he4 a;•.: . v ESi>• ' ..:.:.:
[ h�
i .�3 nv. t
Hillside Residential HR-1 8.49 Acres 1-8 Units
Hillside Residential HR-2.5 19.01 Acres
1-7 Units
Hillside Residential HR-5 24.87 Acres
1-4 Units
Sin•le Famil Residential R-1:20 7.34 Acres
1-13 Units
Sin•le Famil Residential R-1:12 6.85 Acres
1-23 Units
Sin•le Famil Residential R-1:10 3.38 Acres
1-13 Units
Sin. le Famil Residential R-1:8 50.12 Acres
1-239 Units
Multi•Ie Famil Residential RM 5-12 20.53 Acres
102-246 Units
Multi•le Famil Residential RM 5:12-LHP 3.76 Acres
18-45 Units
v u isle ami Residentia r 0 0.79 Acres
3-14 Units
Du. ex •esidentia tagranalaS' 0.72 Acres
2-4 Units
Total 145.86 Acres
{:}nfyr .u}::-::i +wi:.+(.(.'ri:$i%:jf.i}'i:v.
]�*{ t■}rse h}: i:�?::^C!{ti:L::'.::::.: }::}}}.�F..}.v.;.t}<.. ::::\.i:i}.v.vi:::: :'$in
132-616 Units
::4::.�$ $
•}:i}i:..v wY:t•.: �'::::.}:i i$:•}
Resource Conservation RC 126.82 Acres
0
Office 0 3.29 Acres
0
Commercial -Industrial LM 5.98 Acres
0
Commercial C-1, C-2, CH, CM 8.24 Acres
0
Total 144.33 Acres
Notes on Calculation of Unit Densities:
Hillside Residential (HR) and Single Family Residential (R-1):
These categories were reviewed on a parcel by parcel basis, rather than gross
acreage. Each category has a minimum lot square footage which is designated by the
number at the end; for example, R-1:8 is single family residential with 8,000 square
foot minimum lots. Each parcel In the zoning category was scanned and an
approximate number of units that could be generated based on the minimum lot size
was then estimated.
Multiple Family Residential (RM):
The RM 5-12 categories were calculated using gross acreage. For example, the RM 5-
12 category allows from 5 to 12 units per acre. The total acreage available is 20.53
acres and, therefore, the range of allowable units would be from 102-246 units The
actual number of units constructed on an individual parcel of course would be
dependent on parcel size, land configuration, setback requlremerrts, etc. The RM 5-12
LHP category allows the same number of units per acre but the actual units
constructed would also be dependent on the development's impact on the landmark
and historic preservation district. Finally, there are 3 parcels in the Town which have
an RM 5-20 unit zone. Each of these parcels is less than a half acre in size. Therefore,
the range of potential units was calculated on a parcel by parcel basis rather than
the gross acreage for this zoning category.
HOUSING CONSTRAINTS
The inventory on the previous page indicates that the Town has sufficient land
to accommodate its total new construction need for 1996-99 (as described on
pages 35-36 of this document). The total new construction need is 144 units
and there appears to be sufficient capacity for 132-616 units. In looking more
closely at the 1996-99 need of 144 units by income category, the calculations
on page 36 of this document indicate that 45 very low income units, 44 low
income and 55 moderate income units are needed.
It is assumed that some of the zoning categories will not yield any very low, low
or moderate income units. These categories are the Hillside Residential (HR)
and the Single Family at 10,000-20,000 square foot lot minimums (R-1:10, R-
1:12 and R-1:20). However there is the potential for moderate income units in
the R-1:8 category. A maximum number of 239 units could be developed on R-
1:8 land and this would be more than sufficient to accommodate the 55 unit
need.
Very low and low income housing units can usually only be produced on land
that is zoned for multiple -family residential. The Town's vacant land inventory
indicates that between 120-291 units can be built on RM 5-12 land and another
3-14 units on RM 5-20 land.
5 INFRASTRUCTURE CAPACITY
There are no major infrastructure capacity or delivery issues in Los Gatos at this
time. There are certain areas of the Town, however, where the sewer and/or
water systems are old and are in need of replacement or upgrade.
The Town's water is primarily supplied by San Jose Water Company. There are
some smaller, private mutual water companies that supply water but they are
few in number. Approximately 95% of the Town is serviced by San Jose Water
Company. There are some areas of the Town, such as parts of the downtown
area and some areas in the east side, where the water delivery system is old
and the piping needs to be replaced. The Town and San Jose Water Company
are aware of this situation and the San Jose Water Company is developing
plans to upgrade those lines.
The sanitary sewer system is maintained by the West Valley Sanitation District
and the Town is primarily responsible for the storm drain system. Again, there
are areas in the Town which need some of their sewer lines replaced due to
age or composition of the lines. For example, the downtown area still uses
some of the original main sanitary lines, installed in the 1940s. Restaurants in
the downtown that do not have grease traps contribute to the problems in the
sanitary system. The Sanitation District is working on maintaining these lines
and upgrading as needed.
There are some residential properties which were annexed into the Town and
have pre-existing septic systems and no connections to sanitary or stormwater
infrastructure. This is especially true for the neighborhoods east of Highway 17,
HOUSING CONSTRAINTS
in the Placer Oaks and Frank Avenue areas. These residential units are
allowed to remain on septic systems until new development is proposed for the
property.
In regard to traffic and circulation, the overall circulation system is estimated to
be below capacity. The construction of Route 85, in particular, has alleviated
most of the Town's traffic capacity issues.
Market Constraints
1. FINANCING COSTS
There are a number of costs involved in the development of housing. These
include land and construction costs, site improvements, sales and marketing,
financing and profit. Because these costs are so "market sensitive," it is difficult
for a Local govemment to reduce them in any way. For example, financing costs
are dependent on national economic trends and policy decisions. At the time
this Housing Element was prepared (Summer, 1996), fixed mortgage rates for
single-family residential housing varied from 7.5% for a 30 year fixed
conforming loan to 8% for a 30 year fixed jumbo loan. (The maximum loan
amount to qualify as a conforming loan is $203,150, loans over that amount
would be considered a jumbo loan.) Adjustable rate loans were even lower
ranging from starting rates of 3.5% up to 5% and with maximum lifetime caps in
the 11-12% range. Financing from both mortgage brokers and retail lenders
(banks, savings and loans) is available in the Los Gatos area and availability of
financing is not a constraint to the development of housing in Los Gatos.
2. LANDANDCON51RUCT'ION COST5
The actual costs of developing and building housing in Los Gatos could be
viewed as a constraint to housing, especially affordable housing. In addition to
being a primarily "built up" community, the Town is considered a desirable
place to live in Santa Clara Valley and, consequently, land values are impacted.
The cost of purchasing an individual single family lot with no improvements
starts at approximately $200,000 and can range even more depending on the
lot location and amenities. Construction costs in Los Gatos, as in many
California communities, are also expensive. Construction costs are dependent
on many factors including labor costs, material costs, competition in the market
place, etc. These factors are outside of the control of the Town and are totally
dependent on the market place. Developers in the Santa Clara Valley are
reporting residential construction costs ranging from $75 per square foot to
$100-200 per square foot or more, again depending on the amenities and
quality of construction. The $75 per square foot estimate would most likely be a
multi -family development that would benefit from the "economies of scale" of a
larger development. On the other end of the scale, it would not be unusual to
find a single family home in Los Gatos with $200 or more per square foot costs.
47
HOUSING CONSTRAINTS
When trying to develop affordable housing, these land and construction costs
make it very difficult to reach income levels of very low and lower income
households. Since many of the costs of acquisition and construction are
outside of the control of the Town, any development of affordable housing is a
major accomplishment. The fact that the Open Door development was built in
Los Gatos in 1993 (with 60 of the units affordable to very low income
households and 4 units affordable to low income households) is a tribute to the
non-profit developer as well as the Town.
CHAPTER 7: REVIEW OF 1991 HOUSING ELEMENT
In 1991, the Town of Los Gatos revised and adopted the Housing Element of
the General Plan. As part of that adoption process, the Town made the finding
that the 1991 Housing Element substantially complies with the requirements of
Housing Element Law (Government Code Sections 65580-89).
As part of the process of revising the Housing Element for the 1996-99 time
frame, State Housing Element Guidelines suggest that communities evaluate
their previous Housing Element according to the following three criteria:
1. Effectiveness of the Element,
2. Progress in Implementation, and
3. Appropriateness of Goals, Objectives and Policies.
The information that follows then is an evaluation of the policies, programs and
goals as outlined in the 1991 Town of Los Gatos Housing Element.
Effectiveness of the Element and progress in Implementation
The 1991 Housing Element identified 9 "housing issues" in Los Gatos and then
described goals, policies and programs to address those 9 issues. The 9
issues were as follows:
Issue #1: Senior Citizens
Issue #2: Maintenance of
Older Homes
Issue #3: Depletion of
Rental Market
Issue #4: Housing Market
How can the Town help provide housing affordable to
and adapted to the special needs of seniors?
What can the Town do to ensure that this important
segment of the Town's housing stock is preserved?
How can the Town maintain the existing percentage of
rental units and what can the Town do to encourage the
construction of rental units?
How can any unilateral action on the part of the Town
have a significant effect on the housing market? How can
the Town contribute towards the regional jobs/housing
balance?
49
/-SL/
REVIEW OF 1991 HOUSING ELEMENT
Issue *5: Supply of Very
Low, Low and Moderate
Income Housing
Issue #6: Quality of Life
Issue *7: Homelessness
Issue #8: Mobile Home
Parks
Issue #9: Transportation
and Energy Conservation
What should be the Town's role in providing very low, low
and moderate income housing? What can the Town do
to provide opportunities for housing for young adults?
How do we encourage the creation of affordable and
accessible housing which will add to the quality of life?
What can the Town do to address homelessness?
How can the Town preserve the affordable housing
provided by the existing mobile home parks?
How can the Town plan for and take advantage of these
changes with respect to new development, urban design
and the location and energy efficiency of its housing
stock?
The 1991 Housing Element then identified 7 goals and 22 policy statements
that address the 9 housing issues listed above and on the previous page.
Following those goals and policies is a description of housing programs
designed to address the issues, goals and policies. In order to evaluate the
progress of implementing the Housing Element, the following section identifies
each of those housing programs and describes the progress made in
implementing those programs from 1991-1995. Further, the section that follows
also describes the actions needed from 1996-99 in response to the progress
achieved during the 1991-95 time frame.
.REVIEW OF 1991 HOUSING ELEMENT
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REVIEW OF 1991 HOUSING ELEMENT
uture Actions Needed 1996-99,
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REVIEW OF 1991 HOUSING ELEMENT
Continue providing "Annual Housing Reports" for the review
of the Town Council.
Continue to monitor housing needs, especially as identified
in this Housing Element document. In particular, monitor the
development of very low, low and moderate income housing
units as they relate to the community's regional housing
need goals.
c. Review and Coordination The Town participates with Continue to identify and pursue all governmental and non -
of Government Programs other communities in the governmental sources of funds for affordable housing.
"Urban County" program of
Santa Clara County. Santa
Clara County acts as a lead
agency in coordinating CDBG,
HOME and other federal
housing funds. From 1991-95,
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funds to the 64 unit "Open
Doors" development, a 100%
very low and low income
development. Other sources
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included low income tax
credits and State funds.
Gi
K.:
The Planning Department staff
prepares "Annual Housing
Reports" for the Town Council.
From 1991-95, the Town
produced a significant number
of very low and low income
units. Approximately 57% of
the Town's very low income
need and 47% of the Town's
low income need was met
during this period.
a. Current Inventory of
Housing
b. Exploration of Housing
Needs
!REVIEW OF 1991 HOUSING ELEMENT
Continue to monitor vacant land inventory.
d. Analysis of Vacant Land
REVIEW OF 1991 HOUSING ELEMENT
No further action required.
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REVIEW OF 1991 HOUSING ELEMENT
Appropriateness of Goals, Objectives and Policies
In some respects, there have been no significant changes in the Town's
housing market since the adoption of the 1991 Housing Element. There is still a
need to conserve the existing housing stock and to maintain the supply of
affordable units, especially rental units. Housing in Los Gatos is still very
expensive and lower income households have very few opportunities to rent or
buy housing, unless a public subsidy is provided. There also continues to be a
need for the provision of fair housing, information and rental mediation services,
especially as available rental housing becomes more scarce and/or expensive.
Finally, the Town needs to continue to support non-profit organizations that
develop affordable housing or provide supportive services (e.g. Shared
Housing, Homeless Prevention Programs, etc.) since they are continued to be
needed as valuable partners in the effort to address housing problems.
Some housing issues, however, have become even more significant since the
1991 Element adoption. The Town's available supply of developable, vacant
land is dwindling and, consequently, it has become even more important to
identify the type of housing that the Town wants constructed on the remaining
vacant parcels. In particular, the Town's Below Market Price Program (BMP)
can be used more effectively to provide an opportunity for the Town to
encourage a greater number of very low and low income units to be included in
new housing developments. Policies should also be developed during the
1996-99 time frame that address infill housing, especially in regard to rezoning
property if affordable housing will be developed on the parcels. With the
decreasing supply of available land, the conservation of important housing
resources such as mobile home parks and rental housing developments
becomes very important. Therefore, the adoption of a Condominium
Conversion Ordinance and revisions to the Town's Mobile Home Park
Ordinance to preserve low cost housing opportunities should be included as
program goals for the 1996-99 time frame. Further, the Town's Secondary
Dwelling Unit Program needs to be re-evaluated to determine whether
additional secondary units would be provided if changes were made to the
program, such as reduced minimum lot sizes.
Regarding the Town's BMP Program also, it has become obvious in recent
years that the Town's supply of BMP units needs to continue to be carefully
monitored and fiercely protected. The cost of providing BMP units has become
so expensive in recent years that the potential of losing a BMP unit to the private
marketplace is a very serious concern. BMP units should be viewed as a
"savings account" that the Town has and any withdrawals from that account will
negatively affect the residents of the Town in the future. With the drastic
decreases in federal and state housing assistance in recent years, communities
like Los Gatos have to consider BMP units and/or local affordable housing
funds (such as Redevelopment affordable housing funds) as local trust funds
that can provide an endowment of affordable housing opportunities for future
residents of the Town. Staff and elected officials must monitor these local
housing trust funds and ensure that they will be maintained and grow even
more in future years.
REVIEW OF 1991 HOUSING ELEMENT
In addition to the above, some new housing issues have developed since the
adoption of the Housing Element in 1991. First, the Town adopted a
Redevelopment Housing Plan in 1994 and tax increment funds are now
accruing that can be used for affordable housing development. The availability
of tax increment funds and the policies of the Town's Redevelopment Housing
Strategy need to be included in the goals and programs for the 1996-99 time
frame. A second issue that requires attention during the 1996-99 time frame is
the potential loss of some existing affordable housing units. As identified in
Chapter 5 of this document, there are 3 existing housing projects in Los Gatos
that are at risk of losing their govemmental subsidies. These projects and the
date of the expiration of governmental subsidies are: Los Gatos Fourplex (April,
1997), Hartin House (2003) and Villa Vasona (2004). The expiration of the
subsidy for the Los Gatos Fourplex is imminent while the expiration of subsidies
for the other two projects are some 7-8 years in the future. Nonetheless, the
Town needs to work with the owners of the Los Gatos Fourplex project closely
at this time and, also, monitor the other two projects.
Finally, in the years since the 1991 Element adoption, the Town has made
significant progress in addressing its new construction needs as identified in the
ABAG 1988 regional housing needs plan. Approximately 495 new units were
constructed between 1988-1995, accommodating 89.5% of the Town's total
new construction need. Even more impressive, however, is the production of 60
units affordable to very low income households and 39 units affordable to low
income households. These 99 total units represent 20% of all the units
constructed in the Town during that time period. To produce new units that are
affordable to very low income and low income households in today's housing
market is an especially expensive process. The production of the 60 very low
Income units addressed 57% of the Town's total very low income need of 105
units. The 39 low income units represent 47% of the 83 unit total need. Due to
many of the non -governmental constraints identified in Chapter 6 of this
document (in particular, land and construction costs), it is unrealistic to assume
that the Town can contribute to produce this volume of units affordable to lower
income households in the future. However, the 1996-99 Housing Strategy in
the next chapter of this document does identify the production of units affordable
to very low and low income households as the most important housing issue to
be addressed and describes programs, policies and goals to address that need.
In summary, then, many of the Town's 1991 goals and policies continue to be
appropriate to continue into the 1996-99 time frame. However, some of the
implementation programs need to be strengthened and other programs added
to address the issues noted above. The next chapter of this document, Chapter
8, identifies the goals, policies and programs for the 1996-99 time frame.
CHAPTER 8: HOUSING STRATEGY
Overview
The 1996-99 Housing Strategy was developed using the information in
Chapters 2-7 of this document. Chapters 2 and 3 include information about the
Town's population, households and housing units. Chapter 4 identifies the
existing affordable housing policies, programs and housing units in the Town.
Next, Chapter 5 updates the ABAG (Association of Bay Area Govemments)
projections in regard to new housing units needed and the affordability of those
units. In addition, Chapter 5 also contains information about housing
rehabilitation needs and identifies existing, affordable housing units that are at
risk of losing their government subsidies within the next 10 years. Chapter 6
identifies those constraints which may affect housing in the community,
constraints that include governmental as well as non -governmental actions.
Finally, Chapter 7 is an evaluation of the past housing efforts in the Town from
1991-95. All of this information provides a framework in which to construct a
housing program strategy for the 1996-99 time frame of the Housing Element.
The information that follows is organized into two sections. The first section is a
summary of the significant housing issues identified in Chapters 2-7 and how
those issues are addressed through specific housing programs in the 1996-99
strategy. The second section is a complete summary of all of the housing
programs which represents the 1996-99 housing program strategy. Also
included in this second section are the goals and policies which were included
in the 1991 Housing Element and are carried forward into the 1996-99 time
frame.
HOUSING STRATEGY
Summary of Housing Issues
The following is a summary of the major housing issues identified for the Town
of Los Gatos for the 1996-1999 time frame. These issues are listed in order of
priority with the initial issues being the most significant.
Very Low and Low Income Households:
The most significant housing issue is the lack of affordable housing for very low
and low income households in Los Gatos. Very low and low income
households certainly cannot afford to purchase a home and, also, cannot even
afford the average rental unit in Los Gatos. To develop housing that is
affordable to very low and low income households is very expensive and
requires public subsidies, private financing and community involvement. Some
of the significant actions that the Town can take to encourage the provision of
more new affordable units are:
WWI
A) Formalize the Town's Affordable Housing Fund by including Redevelopment
Housing funds, BMP in -lieu fee funds and CDBG funds into one fund with the
common objective of assisting with the production of affordable units. It is
projected that this fund could have a balance of $500,000 by July, 1997 and
could reach an overall total of approximately $1.4 million dollars by July, 1999.
In early 1997, the Town should develop a "Request for Proposals" from
interested for profit and non profit developers asking for specific proposals for
the use of the fund's available balance as of 7/97. The funds should only be
used to assist units that will be very low or low income, newly constructed units
and with the Town financing to be provided as a loan (deferred payment loans
would be acceptable) and never as a grant. As funds accumulate during 1998-
99, the Town should repeat this process.
B) The Below Market Price (BMP) program should be revised so that 1) pre-
1985 BMP units that are at threat of returning to market prices are preserved
and, 2) eligibility criteria are revised so that new BMP units are only affordable
to very low or low income households. In the case of the pre-1985 units, staff
could be authorized to negotiate on behalf of the Town for any pre-1985 unit
that is being sold for market rate prices not to exceed a set subsidy amount (e.g.
$30,000). After that point, the Town Council would make the determination as
to whether it is financially feasible to preserve the unit. The eligibility criteria for
new BMP units needs to be revised so that more lower income households are
being assisted. As of 1996, there were a total of 16 BMP units: 8 of the BMP
units were affordable to moderate income households (households with
incomes between 81-120% of median income) and 8 were affordable to low
income (households with incomes between 50-80% of median income).
Moderate Income Households
The Town should continue to participate in the Mortgage Credit Certificate
Program to assist moderate income households. Based on past experience, it
is estimated that approximately 5 households can be assisted through this
HOUSING STRATEGY
The Town has identified a goal of 5 very low income and 10 low income units
assisted through the Town's Affordable Housing Fund for 1996-99. Further, it is
estimated that at least 5 low and moderate income units will be added to the
Town's Below Market Price inventory of units as a result of the Bella Vista
development. Another 20 moderate income households are expected to be
assisted through the Mortgage Credit Certificate Program.
The table below illustrates the Town's goals for very low, low and moderate
income housing units. The Town expects to directly assist some of the
projected units and anticipates that the private market (through for profit and
non-profit developers) will produce the remaining units needed. The Town will
make every effort to work with the private market developers and assist them as
feasible in producing affordable units.
Illustration 22: ABAG Revised Needs and Town Goals, 1995-1999
Town Assisted
Units:
Affordable
Housing Fund
Town
Assisted
Units:
Below
Market
Price
Program
Assisted
Units:
Mortgage
Credit
Certificate
Program
Units
Developed byi
Non -
Profit or For
Profit
Developers
(No Direct
Town
Assistance)
45 Very Low Income
Units:
5
0
0
40
44 Lovu Income Units 10
2 (Bella
Vista)
0
32
55 Moderate Income '' 0
Units
3 (Bella
Vista)
20
22
•
It is also important to preserve the existing supply of affordable units in the
Town. There are 3 developments that are at risk of losing their governmental
subsidies within the next ten years. The most imminent threat is the Toss of
subsidies in April, 1997 at the Los Gatos Fourplex.
;3 e peig Town .atmeta 1`tffiardable 1-IQ€sirFg
The Town needs to re-evaluate its level of commitment to affordable housing. In
particular, there should be a discussion in regard to formalizing affordable
housing within the Town staff structure and departmental commitments. It may
be an appropriate time to create a staff position with half or full time
67
HOUSING STRATEGY
S`. t AMC �iW } . \ ' '��\'. �\�
The Town has developed an effective assortment of regulations and programs
that should continue to be offered in the future. These include the following:
Density Bonus, Reduced Development Standards, Rent Mediation Program,
Fair Housing, Assistance to Homeless Programs, etc.
;V`'Yf �;'��P• ��"''F tit {`�w.v...,o*S -..` .\.A�..1..
The Town has provided a Housing Conservation Program for over 20 years.
Program participation has decreased significantly in recent years. It is
recommended that the Town increase its marketing efforts to mobilehome park
residents and continuous, systematic marketing to other potential program
applicants. Given the Town's housing stock age and condition, however, it may
be that the need for public assistance for rehabilitation is low and will continue
to be low in the coming years. Therefore, if increased marketing is not
productive, the Town might want to consider utilizing its CDBG funds more for
new affordable housing construction and rely on program income to continue
housing rehabilitation assistance when needed.
HOUSING STRATEGY
Housing Goals, Policies and Programs
In order to respond to the housing issues identified on the previous pages,
following are the housing goals for 1996-1999. On the next page begins an
inventory of the policies and programs to implement those goals.
1. To improve the choice of housing opportunities for senior citizens, families
and singles and for all income groups through a variety of housing types and
sizes, including a mixture of ownership and rental housing.
2. To preserve existing moderately priced and historically significant housing.
3. To improve the quality of existing housing and prevent blight.
4. To eliminate racial, lack of handicapped accessibility and all other forms of
discrimination that prevent free choice in housing.
5. To make infrastructure projects and residential and nonresidential
developments be compatible with environmental quality and energy
conservation.
6. To reduce the homeless population.
7. To provide housing affordable to people who work in the Town.
HOUSING STRATEGY
Housing Strategy,
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APPENDIX
1. Redevelopment Housing Plan
2. Bibliography
3. Inventory of Housing Resources
4. Inventory of Vacant Land
Appendix #1:
Redevelopment Housing Implementation Plan
In December, 1994, the Town of Los Gatos Redevelopment Agency adopted
the 1995-99 Affordable Housing Plan. This Plan was prepared pursuant to
State law and identifies Los Gatos' strategy for 1) the use of tax increment funds
for affordable housing and, 2) the provision and/or protection of affordable
housing units.
Because there are many linkages between a community's Redevelopment
Housing Plan and their Housing Element, it is important that the
Redevelopment Plan be considered during the Housing Element Update
process. Fortunately, the Town's existing Affordable Housing Plan runs
concurrent with the time frame of this Element; that is, both documents have
time frames which extend to 1999.
The Town's 1994 Redevelopment Housing Plan was reviewed in relation to the
housing needs and goals identified in the 1996 Update of the Town's Housing
Element. The information that follows summarizes the results of that review and
identifies either new or revised housing strategies and goals for the
Redevelopment Housing Plan through 1999. These revised/new housing
strategies and goals have been developed in conjunction with the 1996
Housing Element goals and narrative descriptions of these goals and strategies
have been interwoven into the 1996 Housing Element document.
1. Income Definitions (Revision to 1994 Plan)
Redevelopment Housing Fund monies are to be used to increase, improve and
preserve the supply of housing available at affordable housing cost for low and
moderate income households. Those monies are also to be specifically
targeted to assist very low and lower income households in at least the same
proportion as the total number of housing units needed in the community for
those two income categories.
Very low income households are defined as those persons and families whose
incomes do not exceed HUD Section 8 figures for very low income families,
which is usually described as 50% of median income.
Lower income households are defined as those persons and families whose
incomes do not exceed HUD section 8 figures for very low income families,
which is usually described as 80% of median income. (Although in high income
areas such as Santa Clara County, the 80% figure is usually adjusted
downward. In 1996, the 80% figure was adjusted to 62.5% of median income.)
Moderate income households are defined as those persons and families whose
incomes do not exceed 120% of area median income.
The definitions on the previous page define the type of households who can
occupy housing units. In addition, there are restrictions on the fat of the
affordable housing.
2. Affordable liousina Cost Definition (New to 1994 P1ani
A) Rental Housing
For rental housing required to be available at affordable housing cost to very
low income households, annual rents (including utility allowance) may not
exceed 30% of 50% of area median income, adjusted for family size
appropriate for the unit.
For rental housing required to be available at affordable housing cost to lower
income households, annual rents (including utility allowance) may not exceed
30% of 60% of area median income, adjusted for family size appropriate for the
unit.
For rental housing required to be available at affordable housing cost to
moderate income households, annual rents (including utility allowance) may
not exceed 30% of 110% of area median income, adjusted for family size
appropriate for the unit.
B) Owner -Occupied Housing
For owner -occupied housing required to be available at affordable housing cost
to very low income households, housing cost shall not exceed 30% of 50% of
the area median income, adjusted for family size appropriate for the unit.
For owner -occupied housing required to be available at affordable housing cost
to lower income households, housing cost shall not exceed 30% of 70% of the
area median income, adjusted for family size appropriate for the unit.
For owner -occupied housing required to be available at affordable housing cost
to moderate income households, housing cost shall not exceed 35% of 110% of
the area median income, adjusted for family size appropriate for the unit nor
shall it be less than 28% of the actual gross income of the household.
(For purposes of calculating affordable housing cost, the agencies should use
the actual 100% of area median income figures as the base figure to calculate
costs and do not need to take into account any HUD adjustments, such as
HUD's adjustment of the 80% figure noted previously.)
3. Duration of Affordability Controls (Revision to 1994 Plan)
Any new or substantially rehabilitated housing which is assisted from the
Housing Fund must remain affordable to low -and moderate -income persons or
households for the longest feasible time but for not less than:
Rental Housing: 15 years
Owner -Occupied Housing: 10 years
In the case of owner occupied units, such housing may sold during the
affordability time period if the agency has a program (such as equity sharing,
deferred loans, or resale controls) which, upon sale of the assisted unit,
provides for the agency to receive a share of sales proceeds. Also, there are
additional provisions to the affordability period if the agency utilizes its Housing
Fund to preserve assisted units (existing units which receive governmental
subsidies which may expire).
4. Housing Fund Targeting (Revisions to the 1994 Plan)
There are two levels of affordability requirements for units in the
Redevelopment Project area. In general, Redevelopment Agencies are
required to ensure that 15% of all units developed or substantially rehabilitated
in a project area by public or private entities other than the agency must be
affordable to low and moderate income households. (There are additional
affordability requirements for units developed or rehabilitated directly by the
Redevelopment Agency). In addition, there are specific "targeting"
requirements when Housing Funds are expended. Redevelopment Agencies
must expend their Housing Funds in a manner that will produce units affordable
to lower income households and very low income households at least in
proportion to the community's unmet need for units affordable to those
categories.
These unmet needs are supposed to have some relation to the regional
housing needs as identified in a community's Housing Element. The 1996
Housing Element identified the following revised regional housing needs
analysis for new construction, by household income level:
Very Low Income
Low Income
Moderate Income
Total
45 (31 %)
44 (31%)
55 (38%)
144 (100%)
Therefore, for at least the 1996-1999 remaining time frame of the
Redevelopment Housing Plan, the expenditure of Redevelopment Housing
Funds should be in the following proportions: 31 % of the units assisted for very
low income, 31 % of the units assisted for low income and the remaining 38% for
very low, low or moderate income.
5. Housing Production (Revision to 1994 Planl
State law requires that a community identify a housing production plan which
identifies:
A.). estimates of the number of new or rehabilitated residential units to be
developed within the project area, and
B) the number of units for very low, lower and moderate income households
which will be developed.
The December, 1994 Plan adopted by the Town identifies the following new
construction estimate:
Total Affordable to Very Affordable to Lower
Low Income HH and Moderate Inc. HH
1995-99 12 1 1
1995-2004 30 2 3
1995-2032 65 4 6
The Planning Department has reported that 41 units were approved for
construction or substantial rehabilitation in 1995. Assuming that all of these
units are constructed, the revised affordable housing requirements would be:
Total Affordable to Very Affordable to Lower
Low Income HH and Moderate Inc. HH
1995-2004 41 2 4
The 1995-2004 time frame is important because the law states that the
affordable housing production requirement needs to be met within the 10 year
time frame. Therefore, the 6 total affordable units would have to be produced by
2004.
6. Specific Housing Programs and Expenditures (New to 1994 Planl
In 1997 the Town will expend its Redevelopment Housing Fund balance as of
6/30/97 as a commitment of funding to a selected developer of new affordable
units. The Town will develop a "Request for Proposals" which will be distributed
to non-profit and for -profit developers and which will include the following
conditions:
a) Redevelopment Housing Funds must be used to assist the construction of
new units for very low and lower income households.
b) The Redevelopment Housing Funds will be provided as a loan, either an
amortized loan or a deferred payment loan.
c) The units must meet the basic occupancy, affordability and required time
frames for duration of affordability controls as specified in the Town's
Redevelopment Implementation Plan.
In 1998-1999, The Town will repeat the process identified above and expend
the remaining amounts of its funds for a second round of the RFP process.
A. • endix #2: Bibilio• ra. h
Association of Bay Area Governments (ABAG), "Housing Needs
Determination", January, 1989
County of Santa Clara, Housing and Community Development Program,
"Consolidated Plan 1995-2000," February 16, 1996
County of Santa Clara, Office of the Homeless Coordinator, "1995 Overview of
Homelessness in Santa Clara County," March 10, 1995
Fisher Center for Real Estate and Urban Economics at U.C. Berkeley, "No
Vacancy: How To Increase the Supply and Reduce the Cost of Rental Housing
in Silicon Valley," June 25, 1996
Homebase, "Homelessness in the Bay Area," 1990
State of California, Department of Finance, Household and Population Reports,
1980-96
State of California, Department of Housing and Community Development,
"California Statewide Housing Plan Update," 1990
Town of Los Gatos, "Housing Stock Survey Report," 1983-84
United States, Bureau of the Census, 1980 and 1990 U.S. Census Data
United Way of Santa Clara County, "United Way Needs Assessment for Santa
Clara County," 1993-1994
Appendix #3: Inventory of Housing Resources
INVENTORY OF SPECIAL NEEDS FACILITIES
AND SERVICES
SPECIAL NEEDS CATEGORY - ELDERLY
AGENCY:
Project Match
(Urban County)
Catholic Charities -
Long Term Care
Ombudsman
(Los Gatos, Morgan Hill)
Community Services Agency
of Mtn Vw & Los Altos
(Los Altos)
Live Oak Adult Day Care
(Los Gatos)
San Jose State University -
The Health Place
(Los Gatos)
YMCA -Senior Center
(Morgan Hill)
Outreach and Escort
(Morgan Hill)
Catholic Charities -
Independent Aging Prog.
(Morgan Hill)
Second Harvest Food Bank
(Milpitas, Morgan Hill,
Los Gatos)
Senior Adult Legal Services
(Milpitas)
Saratoga Senior Coordin.
Council
Revised 2J 16/96
PROVIDES: PHONE NO:
Shared housing for elderly 287-7121
Advocates for elderly residents of long 944-0567
term care facilities
Senior case management and I & R to (415) 968-0836
seniors
Provides social day care to frail seniors 354-4782
Provides health evaluations and case 924-1325
coordination for low income seniors
Operates a senior center serving as the daily
nutrition site; provides services and activities
Provides transportation to/from Morgan Hill
senior center nutrition program for frail elderly
Provides professional care management and
linkage to services to Morgan Hill seniors.
Provides weekly bags of groceries to low 266-8866
income seniors.
Provides free legal assistance services to 295-5591
elders
Provides support, recreation, and services 867-3438
for seniors ext 257
SPECIAL NEEDS CATEGORY - DISABLED
AGENCY:
Adult Independence Devel.
Center
Pacific Autism Ctr for
Education
Social Advocates for Youth
Timpany Center
Tri-Aegis Allendale Proj.
PROVIDES:
Revised 2/16/96
PHONE NO:
Provides housing and attendant care 985-1243
referrals to disabled
Housing for autistic children
Housing and counseling for 253-3540
disabled youth
Aquatic, therapeutic recreational 295-0228
services for disabled youth & adults
Group home for developmentally disabled 265-1229
SPECIAL NEEDS CATEGORY - PERSONS WITH AIDS/HIV
Aris Project
Provides services to persons with HIV/AIDS
SPECIAL NEEDS CATEGORY - AGRICULTURAL WORKERS
Ochoa Migrant Center
Farm Bureau
California Rural Legal Asst.
Office of Human Relations
South County Housing
•
Housing for Migrant Workers
Provides assistance to agricultural
industry growers and workers
Legal counseling for agricultural workers 847-1408
299-2206
Housing for Migrant Workers -Aspen Grove 842-9181
NON PROFIT HOUSING OWNERS/DEVELOPERS IN LOS GATOS:
Community Housing Developers (408) 279-7676
Mid -Peninsula Housing Coalition (415) 299-8000
Appendix #4: Inventory of Vacant Land
Vacant Non -hillside (Zoning)
APN (s)
529-20-051
529-34-008
ADDRESS
Los Gatos Blvd.
210 E. Main
529-34-068
529-34-094
532-06-058
E. Main
E. Main
Shannon Rd.
ZONING AREA (Acres)1___GEN'L PLAN DESIGNATION
15-1 i 0.55 LOW DENSITY, 0-5
C-1
C-1 ' 0.84
C-1 0.53 NEIGHBORHOOD
COMMERCIAL
C-1 0.20 "I
0.33
NEIGHBORHOOD
COMMERCIAL
245
NEIGHBORHOOD
COMMERCIAL
MIXED USE COMMERCIAL
410-15-011
510-45-011
529-01-027, 028
607 N. Santa Cruz Ave.
223 W Main St.
S. Santa Cruz Ave
529-02-045
50/68 W. Main St.
529-28-035
424-07-051
424-10-066
424-14-028
E Main St.
Bennett Way
C-2
C-2
C-2
C-2
C-2
0.13 ! SERVICE COMMERCIAL
0.32 j CENTRAL BUSINESS DISTRICT_
0.71 I CENTRAL BUSINESS DISTRICT_
0.24 i CENTRAL BUSINESS DISTRICT
0.12 I CENTRAL BUSINESS DISTRICT
1.52
NO ADDRESS
15650 Los Gatos Blvd.
523 ^6-01C
523-06-011
1
CH
CH
CH
CH
CH
0.06
0.10
0.46
0.14
MIXED USE COMMERCIAL
MIXED USE COMMERCIAL
MIXED USE COMMERCIAL j
MIXED USE COMMERCIAL
0.78 I LOW DENSITY, 0-5
1.54
409-24-001
409-24-002
Winchester Blvd.
CM
Winchester Blvd.
409-24-003
424-31-027
424-31-049
Newell Ave.
University Ave.
Lark Ave.
567-18-003
CM
0.31
0.15
j CM
CM
CM
0.23
1.87
0.17
2.73
LOW DENSITY, 0-5
LOW DENSITY, 0-5
LOW DENSITY, 0-5
LIGHT INDUSTRIAL
LIGHT INDUSTRIAL
567-18-004
567-18-006
567-18-007
Harwood Rd.
HarwoodRd'
Harwood Rd..
Harwood Rd.
567-18-008
567-18-058
Harwood Rd.
Alerche De.
567-18-062
567-18-068
107 Crider Ct
Harwood Rd.
HR-1
HR-1
1.65
1.01
HR-1 i 1.01
MR-1 j 1.02
HR-1
HR-1
HR-1
1.5
0,47
0.43
HR-1 I 1.40
8.49
LOW DENSITY, 0-5
LOW DENSITY, 0.5
LOW DENSITY, 0-5
LOW DENSITY, 0-5
LOW DENSITY, 0-5
LOW DENSITY, 0-5
LOW DENSITY, 0-5
LOW DENSITY, 0-5
537-23-056
537-05-010
537-05-015
Wooded View Acres(?)
HR-2.5
19.1
19.1
Foster Rd. ,7 HR-5 T 6.02
17975 Foster Rd. -( HR-5
LOW DENSITY, 0-5
HILLSIDE RESIDENTIAL, 0-1
18.85 1 HILLSIDE RESIDENTIAL, 0-1
24.87
424-27-005
LM 1 0.32 I SERVICE COMMERCIAL
424-27-006 ' LM 0.32 ! SERVICE COMMERCIAL
- '_EP. -. 196
APN (s)
424-27-007
529-07-071
529-07-091
529-11.026
529-12-007
529-12-008
8:S=AM TOWN OF LOS GATOS
Vacant Non -hillside (Zoning)
529-12-009
410-16-025
421-13-061
424-31.055
523-06-042
529-13-010
407-14-008
407-16-011
ADDRESS
Farley Rd. West
University Ave.
University Ave.
Farley Rd.
University Ave.
University Ave.
University Ave.
Monterey ave.
15400 National Ave.
14800, 14850 Winchester
16190 Los Gatos Blvd.
NO ADDRESS
14304 Quito Rd.
Old Adobe Rd.
523-42-011
532-37-052
532-37-061
Union Ave.
101 Stacie St.
Hollywood Ave.
ZONING AREA (Acres),
LM 0.42
LM 0.14
LM 0.23
LM
LM
LM
LM
0.40
0.57
0.57
3.01
5.98
NO.146 F. 3, a
GEN'L PLAN DESIGNATION
SERVICE COMMERCIAL
SERVICE COMMERCIAL
SERVICE COMMERCIAL
SERVICE COMMERCIAL
LIGHT INDUSTRIAL
LIGHT INDUSTRIAL
LIGHT INDUSTRIAL
0 0.33 MEDIUM DENSITY, 5-12
0 1.30 OFFICE PROFESSIONAL
O 1.09 ! PUBLIC
0
0.28
LOW DENSITY, 0-5
0.29 OFFICE PROFESSIONAL
3.29
R-1:10 0.14
R-1:10
R-1:10
R-1:10
R-1:10
409-20-006
409-23-003
409-25-021
510-54-026
La Rinconada Dr.
Hernandez Ave.
R-1:12
R-1,12
R-1:12
R-1:12
407-02-012
2.55
0.34
0.19
0,16
LOW DENSITY, 0-5
LOW DENSITY, 0-5
LOW DENSITY, 0-5
LOW DENSITY, 0-5
LOW DENSITY, 0-5
3.38
2.55 I MEDIUM DENSITY, 5-12
3.84
0.28
0.18
6.85
LOW DENSITY, 0-5
LOW DENSITY, 0-5
LOW DENSITY, 0-5
Smith Creek Dr.
407-06-007
403 Montclair Rd.
407-10-003
424-30-059
424-30-098
529-29-038
529-29-040
529-33-051
R-1:20
R-1:20
More Ave. R-1:20
Oak Ridge Way R-1:20
Wild Way
Reservoir Rd.
R-1:20
0.61
0,34
0.45
0.50
1.28
Reservoir Rd.
Kimble Ave.
529-37-042
532-36-005
Alpine Ave.
Los Robles
0.18
R-1:20 1 0.32
R-1:20 0,01
R-1:20
R-1:20
0.47
3.18
7.34
LOW DENSITY, 0-5
LOW DENSITY, 0-5
LOW DENSITY, 0-5
LOW DENSITY, 0-5
LIGHT INDUSTRIAL
MEDIUM DENSITY, 5-12
LOW DENSITY, 0-5
HILLSIDE RESIDENTIAL, 0-1
LOW DENSITY, 0-5
LOW DENSITY, 0-5
406-28-013
406-28-022
406-28-028
406-28-029
Capri Dr. j R-1:8
589 Vasona] R-1:8
585 Vasona R-1:8
593 Vasona
409-04-051, 053 j Wedgewood Ave.
1091 Little Harriet Rd.
409-05-028
409-13-021
409-14-001
0.24
0.41
LOW DENSITY, 0-5
LOW DENSITY, 0-5
0.40
R-1:8
0.43
R-1:8
1.82
(Pollard) R-1:8
R-1:8
R-1:8
T
LOW DENSITY, 0-5
LOW DENSITY, 0-5
MEDIUM DENSITY, 5-12
7.40 j MEDIUM DENSITY, 5-12
0.14 I LOW DENSITY, 0-5
0.24 I LOW DENSITY, 0-5
Vacant Non -hillside (Zoning)
APN (s)
ADDRESS
409-14-039 I 14317 La Rinconada Dr. I
409-17-015 Wedgewood Ave.
410-09-044 15763 Kavin Ln.
410-18-006
424-07-033
424-07-091
Creffield Heights
424-07-094
424-07-095
424-08-029
424-08-035
Bennett Way
S. Bascom Ave.
16392 Burton Rd.
Oka Ln
Oka Ln
424-08-062
424-08-066
424-08-074, 075
424-10-050
424-12-121
424-19-053
424-21-038
424-21-051
Lark Ave.
National Ave. (County)
Sun Ray Or.
Farley Rd.
424-22-033
424-47-013, 017
510-41-067
510-41-068
510-43-045
523-06-025
523-09-004
523-09-005
Laurel Ave,
Laurel Ave.
Pennsylvania Ave.
Magneson Loop
Blossom Hill Rd.
523-13-066
523-23-037
527-01-013 1 16061 Shannon Rd.
527-07-009 I Camino Del Cerro
529-09-001
Blossom Hill Rd.
529-14-012
529-17.006
529-20-015
529-20-023
NO ADDRESS
Blossom Hill Rd.
Frank Ave.
Roberts Rd
Pine St.
ZONING IAREA (Acres)GENII PLAN DESIGNATION
R-1:8 I 0.24 LOW DENSITY, 0-5
R-1:8
0.70 I LOW DENSITY, 0-5
R-1:8 I 0.19 i LOW DENSITY. 0-5
R-1:8 1 0.16 L MEDIUM DENSITY, 5-12
R-1:8 0.15 I MIXES E COMMERCIAL
R-1:8 I 0.24 1 MIXED USE COMMERCIAL
R-1:8 I 2.21 MIXED USE COMMERCIAL
R-1:8 0.65 MIXED USE COMMERCIAL
R-1:8
R-1:8
R-1:8
I R-1:8
R-1:8
0.30
0.29
2.30
0.28
9.20
LOW DENSITY, 0-5
LOW DENSITY, 0-5
MEDIUM DENSITY, 5-12
R-1:8
R-1:8
R-1:8
0.73
0.29
0.17
R-1:8
0.97
R-1:8 0.36
R-1:8 0.98
R-1:8 4.45
R-1:8 0.35
R-1:8 1.20
R-1:8 l 0.17
R-1:8 1 0.19
R-1:8
R-1:8
R-1:8
R18
R-1:8
0.53
1,08
0.19
2.50
1.45
R-1:8
0.39
R-1:8 ( 0.40
R-1:8
1 R-1:8
529-23-005, 015,
016
529-39-065
529-39-066
532-07-117
532-23-020
532-23-021
532-29-029
532-34-071
0.22
0.55
R-1:8
Pine St. R-1:8
Bella Vista Ave.
Johnson Hollow L R-1:8
NO ADDRESS R-1:8
R-1:8
16456 Ferris Ave.
17381 High St,
High St.
Loma Alta Ave
259 Vista del Monte
410-15-002
Ashler Ave.
New York Ave.
R.1:8
R-1:8
R-1:8
R-1:8
R-1:8
0,63
0.11
1.31
0.09
0.11
0.35
0.15
0.36
0.20
1,65
50.12
LOW DENSITY, 0-5
LOW DENSITY, 0-5
MIXED USE COMMERCIAL
LOW DENSITY. 0-5
LOW DENSITY, 0-5
LOW DENSITY, 0-5
LOW DENSITY, 0-5
LOW DENSITY, 0-5
LOW DENSITY, 0-5
LOW DENSITY, 0-5
LOW DENSITY, 0-5
LOW DENSITY, 0-5
LOW DENSITY. 0-5
LOW DENSITY, 0-5
L_ LOW DENSITY, 0-5
LOW DENSITY, 0-5
LOW DENSITY, 0-5
HILLSIDE RESIDENTIAL, 0-1
LOW DENSITY, 0-5
LOW DENSITY, 0-5
LOW DENSITY, 0-5
LOW DENSITY, 0-5
LOW DENSITY, 0-5
MEDIUM DENSITY,5-12
MEDIUM DENSITY, 5-12
LOW DENSITY. 0-5
LOW DENSITY, 0-5
LOW DENSITY, 0-5
LOW DENSITY, 0-5
LOW DENSITY. 0-5
MEDIUM DENSITY, 5-12
HILLSIDE RESIDENTIAL, 0-1
R-1D 1 0.13
529-27-021
- R-10 1 0.41
1 0.54
MEDIUM DENSITY, 5-12
1 - C - •
OPEN SPACE
Vacant Non -hillside (Zoning)
APN (s) ADDRESS I ZONING
AREA (Acres) GEN'L PLAN DESIGNATION
424-07-081 �`-
424-07-082, 083
424-07.089
527-19-004, 005, '
006, 007; 527-17-
004; 527-20-001; I
537-27-005, 006 ! 14734 Blossom Hill Rd.
523-23.030
424-08-016
424-08-017 !
424-08-021
424-28-027
529-05-043
Verde Ct
'-' 1,: ,4?.: n %i
Vineland Ave.
RC
RC
RC
RC
1 .
1
RD
3,21 � —
I MIXED USE COMMERCIAL
9.17 i MIXED USE COMMERCIAL
11.44 MIXED USE COMMERCIAL
103.00 I
12fi 82 j
I RM:5-12
RM:5-12
RM:5-12
0.18
1.16
2.60
4.32
AGRICULTURE
0.18 i LOW DENSITY, 0-5
529-05-044
529-05-049
529-16-019
Miles Ave.
Miles
RM:5-12
RM:5-12
RM:5-12
RM:5-12
0.13
1.15
0.47
4.30
529-16-021 i 17005 Roberts Rd. RM:5-12 0.59 0.53
529-16-045 i 16973 Roberts Rd.
529-16-068 ! 16945 Roberts Rd. RM:RM:5-12 ; 1.11
1
529-16-073 ! Placer Oaks Rd. i RM:5-12 ! 1 11
! 3.33
529-21-010
Bella Vista Ave. ! RM:5-12 0,16
529-29-008
17017 Roberts Rd.
College Ave.
529-05-015
529 � 6
529-05-030
529-05-031
RM:5-12
RM:5-12 1 0.27
20.53
University Ave. RM:5-1 H2 LL P
RM:5-12-LHP
RM:5-12-LHP
University Ave. i RM:5-12-LHP
RM:5-12-LHP
529-05-034
529-09-029
529-09-034
University Ave.
Roberts Rd.
Rushmore Ln
1.21
0.38
0.96
1.02
0.19
3.76
LOW DENSITY, 0-5
LOW DENSITY, 5
LOW DENSITY, 0-5
MEDIUM DENSITY, 5-12
OPEN SPACE
OPEN SPACE
OPEN SPACE
MEDIUM DENSITY, 5-12
MEDIUM DENSITY, 5-12
MEDIUM DENSITY, 5-12
MEDIUM DENSITY, 5-12
MEDIUM DENSITY, 5-12
MEDIUM DENSITY, 5-12
MEDIUM DENSITY, 5-12
MEDIUM DENSITY, 5-12
I MEDIUM DENSITY, 5-12
RM:5-20
0.21
RM:5-20
0.19
RM:5-20 0, 39
0.79
MEDIUM DENSITY, 5-12
MEDIUM DENSITY, 5-12
MEDIUM DENSITY, 5-12
MEDIUM DENSITY, 5-12
HIGH DENSITY, 5-20
HIGH DENSITY, 5-20
NM/ 2_2, 19,1q
ittee/Council Comment
2 -
t TT t, T1,
4
2,
Highlights of Draft Housing Element
° 7 O
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Maximum
Monthly
Housing Cost
$842/month
Q
4
N
0
$2022/month
Q
Maximum
Annual
Household
Income
0
0
M
b+4
0
0
.7t'
b9-
Moderate $80,900
(80-120% of
Median)
Very Low
(0-50% of
Median)
O
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O ct
a)
4
Homeowner Affordability, Town of Los Gatos, 1995
Household Who Could
Afford Median Priced
Single Family Home
0
0
,-1
,—+
EA-
N
O
M
0
N
N
r1
0
0
0
M
0
N
0
0
0
d'
cfr
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6x}
Household
Who Could
Afford
Median
Priced
Condominium
0
Maxinunn Purchase $143,392 S229,000
Price
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N
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0
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to
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School
Teacher
Family
(Under 8O%
of Median
Income)
S42,100
d'
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Annual Income
Monthly Income
Maximum Monthly
Housing Cost (30%
of Income)
Taxes and Insurance
(% of Monthly
Housing Cost)
Maximum Monthly
Mortgage Payment
Maximum Mortgage
Downpayment
5
Fevi5ed ABAG New Construction
11) 13)
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0 41a,
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43 �43
V m
as cm
•Ni O
tn tA•X
4
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0
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New Units
Produced,
1988-1996
60
(Open Doors)
39
(Open Doors)
(Terraces).
(BMP Unitl)
5
(BMP Units)
•
O-
co
tlJ
Qr
V
a
a)
ciS -Ts
Type of Household
by income Level
Very Low Income
0-50% of Median
Income
Low Income
51-80% of Median
Income
Moderate Income
81-120% of Median
Income
Above Moderate
Income
120%+ of Median
Income
TOTAL,
Housing Achievements (1988-95)
o o 'b o
ci
in
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co 0 g :4,-4 rej9 g ti 0
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sti +4
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7
Regional Housing Needs and
Accomplishments, 1988-95
Household
Income Group
Town of
Los Gatos
City.. of
Cupertino
City of
Palo ` Alto.
VERY LOW
INCOME
Units Needed
105 Units
508 Units
338 Units
Units Produced
60 Units
58 Units
62 Units
% of Need
Achieved
57%
11%
18%
LOW INCOME
Units Needed
83 Units
444 Units
232 Units
Units Produced
39 Units
50 Units
24 Units
% of Need
Achieved
47%
11%
10%
MODERATE
INCOME
Units Needed
111 Units
635 Units
347
Units Produced
5 Units
12 Units
48
% of Need
Achieved
5%
2
2%
14%
co
ct
N-.
0
Po
0
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0?
th ii
a
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ri
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oo 0
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MEM O R A N
DU
COMMUNITY SERVICES DEPARTMENT
To:
From:
Subject:
Date:
Lee Bowman, Planning Director
Regina A. Falkner, Community Services Director)
Draft Housing Element
October 24, 1996
RECE/ VED
OCT 2 5 1996
TOWN OF LOS GATOi
PLANNING DEPARTMENT
By
The Community Services Commission Housing Committee met Last Monday to discuss the Draft Housing Element.
The following are their comments and questions --as well as some of Barbara's and mine. Please call Barbara at
408.354.6820 and let her know how you want to respond; informal works for us (as you know, I am out of the office
until 11/11).
• How was the 35% rental goal established?
• Master demographic chart needed to allow for overview.
• Page 27/28: Income eligibility criteria used? (add column)
• Page 12: Project Match serves adults with one child. What about two kids?
• Are other cities providing housing for single parent households?
• SHH: How many kids in family?
• Overcrowding in rental units is a problem, even if it's affecting relatively few families (last sentence Page
14).
• Page 20: Total number of units in chart doesn't add up to 11,822?
• Invite developers to public hearings regarding the element.
• How about converting large homes into multi -family units? (Approval process required to make this
possible.)
• Page 31 (CDBG): Consider adding: Approximately 75% of the Town's total accumulated CDBG funding
is divided almost equally among three on -going Town programs: The Housing Conservation Program,
ADA (Americans with Disabilities Act) accessibility improvements, and affordable housing.
• Page 69: Where did these goals come from?
• Page 42: Clarify Planned Development (PD) overlay zone?
• Page 43: Would it serve any purpose to designate percentage of land zoned HR, R-1, R-D, etc., in chart?
• Page 44: Missing sentence in first paragraph: ...the Planning Director. More complicated applications,
such as subdivisions...
• Page 47: 1. Financing Costs/Line 10: ....Adjustable rate loans had even lower rates,
up to 5% and.... (Existing sentence very awkward.)
• Page 51 (Chart): b. BMP (2nd column) second clause incomplete.
• Page 62: 9. Homeless Assistance....change Coalition to Consortium....(EHC:
Consortium).
• Page 28: 1. Below Market Price (BMP) Program (2nd line): ....The BMP program was
1979 Page 26 says program was initiated in 1976??
cc:
George Perazzo, Chair, Community Services Commission Housing Committee
Seth Lehrman, Community Services Commission Housing Commit -tee
Barbara Coy-Bulicz, Community Services Program Coordinator
ranging from 3.5%
Emergency Housing
initiated in
n:\csd\housing.ele
A T r t . T 3
COMMENTS AND QUESTIONS CONCERNING
THE HOUSING ELEMENT UPDATE
Received at General Plan Committee Meeting 11/13/96
► Compare median price of Los Gatos home to median price home, Santa Clara County
Indicate how Open Doors has such low rental rates, ie: subsidies from Town of Los
Gatos, State, Low -interest Housing Tax Credits. Explain that non-profit agency staff
obtain at least 6 to 8 funding sources for a project like Open Doors.
► Local efforts to maintain units that may lose federal subsidies are important. Town
should talk to property owners - look at preparing financing structure for loss of federal
money.
► Possible to obtain figures from Saratoga and Campbell? (to include in Regional Housing
Needs table comparing ABAG figure achievement)
► Regional Housing Needs table suggests a need for moderate income units; but HCD does
not view moderate income units as high priority need compared to very low and low
income units. Include that State looks at overall effort on part of Town to provide
housing units?
► For a 20% down payment there is a cost difference for low and very low income units -
are there any down payment assistance programs from Town? If not, there should be a
recommendation for the Town to have down payment assistance programs.
► To increase rental housing stock, Town should encourage secondary units. Can Town tie
units to Beiow Market Price program? Town should consider this since it utilizes
developed land. However, existing secondary units not counted as affordable units.
► State should acknowledge low income units that remain in perpetuity.
► What are Ramifications of non-compliance?
► Suit against Town for not having Certified Housing Element
► Town could lose ability to issue Permits
► May prohibit State funding
► State Certified Housing Element prevent Town from being sued? State certification
prevents a lawsuit more than a self -certified element.
► Develop housing in Downtown as mixed use?
► Zoning Ordinance allows, but difficulty exists with parking/financing constraints
for developers.
Overcrowding - 100 units overcrowded in Los Gatos - not identified as significant issue
(Los Gatos overcrowded units below County average)
COMMENTS AND QUESTIONS CONCERNING
THE HOUSING ELEMENT UPDATE
Received at General Plan Committee Meeting 11/13/96
• Redevelopment Agency funds should be structured for affordable housing units. For
units to remain affordable in perpetuity, Housing Strategies should include that it means
working with non-profit agencies (especially for rental units.)
• Mention benefit of larger housing project (higher density) to have affordable units
More funding available for non-profit agencies if larger projects
► Non-profit probably needs minimum number of dwelling units - ie:, 20
dwelling units
► Non-profit agencies are eager to develop in Los Gatos
• Are non-profit agencies willing to manage smaller units if several are
located within nearby proximity of each other?
N:\DEV\RDA111-14.MET
I
•
LOS GATOS STRUGGLES
WITH HOW TO MEET
THE HOUSING ELEMENT
OF ITS GENERAL PLAN
State wants more affordable
housing, but land is scarce
Study session set for Dec. 9
By CLARENCE CROMWELL
he state's repeated requests for more
low-income housing in Los Gatos
appear to be falling on deaf ears, but
town officials insist they'd happily com-
ply —if only they could figure out where to
put the houses.
The California Department of Housing
and Community Development is review-
ing the town's latest attempt at writing the
housing element of its general plan, a doc-
ument required by the state to show that
the town will have enough housing for the
growth state planners expect to see here.
Town planners, not wanting to see the
document rejected by the state a fourth
time, paid planning consultant Melanie
Shaffer Freitas $20,940 to write it. At a
work session attended by members of the
General Plan Committee, Planning
Commission and Town Council, Shaffer
Freitas explained the document; she isn't
proposing that the town rework any of its
programs because she believes her draft of
the document will convince the state to
accept the housing element.
If the state won't accept the housing ele-
ment, the Los Gatos General Plan will
remain incomplete. There's no penalty,
but without a general plan the town can be
stripped of its ability to issue building per-
mits, if anyone sues to force completion of
the general plan, said Planning Director
Lee Bowman.
Shaffer Freitas said the Los Gatos
housing element has a good chance
of being accepted because the town
has excellent programs that help
people buy or rent housing for less
than the market rate —they just
needed to be explained to the state.
"I think they're going to be happy
with the programs,"she said. "Los
Gatos has done a good job with its
programs. We have this spectrum in
Los Gatos of lower -income people
as well as upper -income people."
Los Gatos requires developers to
sell a percentage of new homes
they build at less than the going
rate (if they build three or more
houses), or pay a fee in lieu of
donating the houses. Rental com-
plexes must likewise provide
below -market units. The town has
a fund to subsidize construction of
pasta
•
-(
encouraged nonprofit developers
to set up a few affordable housing
complexes in Los Gatos.
Shaffer Freitas conceded that
the programs probably won't meet
goals the state set for Los Gatos: 45
very low—income units, for people
earning less than $33,700 a year; 44
lower -income units, for people
earning between $33,700 and
$42,100; and 55 moderate -income
unit9, for people earning between
$42,100 and $80,900 :She project
ed that the town's affordable-
housing fund would put into place
15 of the 89 units needed for lower -
and very low—income people; she
projected that the town would be
able to subsidize none of the mod-
erate income units needed. A
problem the town expects to grow
is rental housing for seniors with
fixed incomes.
The reason Los Gatos can't meet
state expectations, building offi-
cials have explained, is that the
state expects Los Gatos to set aside
land and zone it adequately for
low -rent apartments. That would
require as many as 30 units per acre
and would mean three- or four-
story apartment towers. Two-story
apartment buildings won't be big
enough to provide all the units and
will cost more per -unit to build and
for renters to rent. There isn't
enough land with zoning that will
allow apartments to meet the
state's housing demands.
Town Manager Dave Knapp said
it's a better idea to make develop-
ers include low-priced units when
they build. It spreads affordable
units around town and doesn't ruin
the view. Town Council members
have said they won't even broach
the question of apartments taller
than two stories and no one in Los
Gatos is asking them to.
The town right now has a total of
236 affordable units: 179 very
low—income, 49 lower -income and
eight moderate -income units.
People in low- and very
low—income categories couldn't
come close to buying a traditional,
one -family house in Los Gatos.
To buy a median -priced house
here during 1995, a newcomer
needed to earn $132,000 a year and
probably paid $450,000, according
Shaffer Freitas' report. (The report
assumes that the buyer will get a 30-
year mortgage, at 8 percent, with a
20 percent down payment.) To buy
a median -priced condo, in 1995, a
new Los Gatans had to earn at least
$67,239 a year and would have paid
$229,000 for the condo.
Data in the housing element
showed that minorities aren't mov-
ing to Los Gatos. Nor has the town
been expanding its base of housing
as fast as growth requires.
The population was 90 percent
white in 1990; the county popula-
tion is 58 percent white including
Los Gatos. And while the county's
population is 20 percent Latino, 17
percent Asian and 3.5 percent
African -American, the Los Gatos
population is 4.7 percent Latino, 5
percent Asian and 0.4 percent
African -American.
Los Gatos did not keep up to the
countywide growth during the
1980s and lagged far behind other
cities in expanding its housing
stock.
Between 1980 and 1990, Santa
Clara County grew by 16 percent
but Los Gatos grew by only 2 per-
cent. Monte Sereno and Saratoga
both shrank by 4 percent. Other
cities took up the slack: San Jose
grew 25 percent and Campbell
grew 33 percent. Morgan Hill
swelled 40 percent just during
that decade. .'• - • =_-•
Between then and now —from
'1990 to 1996—Los Gatos has added
413 new houses. The town had
12,235 units, as of Jan. 1, 1996. The
rate of housing growth has been
slower than it was during the 1980s.
The town has seen about 69 new
houses a year during the past six
years, compared to 96 a year during
the 1980s. The town is running out
of land and it's harder for develop-
ers to borrow money, after the fed-
eral government tightened up
banking regulations.
Those who can afford to buy or
rent in Los Gatos will find it
extremely difficult to locate a par-
ticular place to put their money on.
The vacancy rate for multi -family
apartment complexes is currently
hovering around 0.5 percent,
according to Shaffer Freitas' report.
Less than 5 percent vacancy indi-
cates a tight apartment market.
About 36 percent of Los Gatos
residents rented in 1990, according
to information Shaffer Freitas
gleaned from the U.S. Census.
About 40 percent of California
cities have incomplete general
plans because of their housing ele-
ment, Bowman, the planning
director, has said. Numerous cities
around the state are currently com-
plaining of the numbers of units
the state expects them to make
room for.
Some cities, including Los Gatos,
have proposed merging their needs
with other municipalities, so the
required units could be built near-
by, if not in Los Gatos.
The Town Council will hold a
study session on the housing ele-
ment Dec. 9 at the Town Council
Chambers, 110 E. Main St.Plan-
.ncrs expect that the council.* be
'ready to adopt the housing=ele-'
ment next spring, after a series of
putlicheaurtgs - t
T
FREITAS +•FREITAS
Engineering and Planning Consultants
October 21, 1996
Mr. Lee Bowman
Planning Director
Town of Los Gatos
PO Box 949
Los Gatos, California 95031
99E;
;l v;, C I C 3 GA O
Dear Lee:
Attached to this letter please find your copy of the transmittal letter sent to the State
Department of Housing and Community Development. Los Gatos' draft Housing
Element Technical Appendix was sent today to HCD for their review.
I have also collected some information for you in regards to your question about how other
communities have done in achieving their regional housing needs goals. In the table
below, I have compared Los Gatos to Palo Alto and Cupertino for the period from 1988-
95. As you can see, Los Gatos has been much more successful than either of the other two
communities in addressing housing needs for very low and low income households.
Regional Housing Needs and Accomplishments, 1988-95
Household Income
Group
VERY LOW INCOME
Town of Los.
Gatos
City of
Cupertino
City of Palo Alto
Units Needed
105 Units
508 Units
338 Units
Units Produced
60 Units
58 Units
62 Units
% of Need Achieved
57%
11%
18%
LOW INCOME
-
Units Needed
83 Units
111 Units
232 Units
Units Produced
39 Units
50 Units
24 Units
% of Need Achieved
47%
11 %
10%
MODERATE INCOME
Units Needed
111 Units
635 Units
347
Units Produced
5 Units
12 Units
48
% of Need Achieved
5 %Q .
2%
14%
Please feel free to call me if you have any questions about this table.
Yours truly,
Melanie Shaffer Freitas
Freitas + Freitas
311 Laurent Street
S- ( ATTACH
• Santa Cruz, CA 95060 •
(408) 429-5018 • Fax (408) 429-1264
THE WHO, WHY AND HOW BEHIND AFFORDABLE HOUSING.. .
WHO:
• Affordable housing enables people of diverse incomes to live in Los Gatos. This diversity
defines the Town's character and makes Los Gatos more than a bedroom community.
• A viable housing stock must be maintained in Los Gatos, just as much as viable
commercial districts must be maintained.
• People who work in Los Gatos should have the opportunity to live in Town.
• Do we want to preserve and continue to develop affordable housing or become an
exclusionary community?
WHY:
• It is a National and State goal to "provide a decent home and suitable living
environment for all".
• Our community's housing goals include providing housing affordable to people who work in
the Town, and improving choice of housing opportunities for senior citizens, families and
singles in all income groups through a variety of housing, both owned and rented.
• Does the Town want to renew this commitment?
HOW:
• Renew the commitment to providing affordable housing and improving housing
opportunities in Los Gatos.
• Adopt the Updated Housing Element and gain State certification.
• The Housing Element and Redevelopment Housing Strategies include policies and
recommendations for using funds set aside for affordable housing development in Los Gatos
for the years 1996-99.
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LOS GATOS HOUSING PROGRAMS
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16 conciliations
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PROGRAM
Information and Referral
, Staff maintains a current listing of local housing resources and networks with Housing agencies in order to provide
inquiring residents with current and accurate information.
Housing Conservation Program (HCP)
This program preserves the existing housing stock and promotes safe housing for residents by providing Community
Development Block Grant (CDBG) funded low interest loans and grants to income eligible property owners to
rehabilitate their homes. Low interest loans are also available to property owners to rehabilitate qualifying rental
units. Approximately 325 households have been assisted through this Program since its inception in 1976;
approximately $1.8 million has been disbursed. After the Loma Prieta earthquake, the program became the vehicle
for claiming and distributing over $3,000,000 in State funds and $300,000 in private funds, for housing rehabilitation.
Below Market Price Housing Program (BMP)
Through the Program, new residential units are made available to income eligible households for purchase or rent at
below market rate prices. The Town Code outlines the elements of the Town's inclusionary zoning ordinance. The
ordinance is implemented through the Below Market Price Housing Program which is guided by Town resolutions.
In certain instances, developers may pay a fee in -lieu of providing units. Funds are used to administer the program
and may also be used for other affordable housing efforts such as: landbanking; writing down the cost of owner -
occupied units; and purchasing rental units.
Affordable Housing Development (Landbanking)
In partnership with non-profit housing developers, the Town uses non -General Fund to develop affordable units.
Examples include a fourplex on Fairview Plaza, a fourplex for seniors on Nicolson Avenue, Villa Vasona, and the
Open Doors Housing Development. CDBG funds have been used to purchase land or provide loans or grants for 171
new units throughout the Town. Without the Town's commitment of funds, these units would not have been
constructed. Staff projects that a suitable development will be identified in 1997 using CDBG, BMP In -Lieu and
Redevelopment Funds.
Mortgage Credit Certificate Program (MCC)
MCC's provide financial assistance by giving federal income tax credits to first-time home buyers of single family
homes, townhomes, and condominiums.
Rent Mediation Program
The Rent Mediation Program provides a process for resolving disagreements between tenants and property owners in
accordance with Town Codes Sections 14.80 and 14.85 Rental and Other Landlord/Tenant Disputes. The Code was
written with the objective of preventing excessive and unreasonable rent increases while assuring property owners a
fair and reasonable return on investment.
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I
TOWN OF Los GATOS
CIVIC CENTER
110 E. MAN STREET
P.O. Box 949
Los GA Ith, CA 95031
COMMUNITY SERVICES DEPARTMENT
HOUSING PROGRAMS
The Town of Los Gatos has a commitment to and takes an active role in developing
low/moderate income housing in our community.
There are multiple affordable housing units scattered throughout the Town.
RENTAL
1. Beckwith Apartments
31 East Main Street
Two Below Market Price studio rental units.
For more information, call Steven Ho at 446-0118
2. Los Gatos Oaks Apartments
517 Blossom Hill Road
Two Below Market Price rental units.
For more information, call William Errico at 354-0569
3. Los Gatos Fourplex
221 - 227 Nicholson
Owned by Mid -Peninsula Housing Coalition.
This fourplex consists of one -bedroom apartments for low and moderate income seniors.
For further information call, Mid -Peninsula at (415) 299-8050 or (415) 965-1060.
4. Hartin House
221 Los Gatos Blvd.
Owned and managed by Community Housing Developers.
This group home houses eight senior women. Each resident has a private bedroom and
shares other rooms and facilities. Eligible applicants must meet Section 8 income limits.
Rents are subsidized by the Santa Clara County Housing Authority. If you have
questions or would like to get on the waiting list, call Community Housing Developers
at 279-7676.
5. 95 Fairview Plaza
Owned and managed by Community Housing Developers.
This fourplex consists of one studio, two one -bedroom, and one two -bedroom
apat Lnients. For further information, call Community Housing Developers at 279-7676.
INCORPORATED AUGUST 10, 1887
Tl "i
6. Open Doors Multi -Family Development
634 W. Parr Avenue
Open Doors contains 64 units ranging from two to four bedroom units. An on -site
childcare center with subsidized rates is available for tenants. Eligible households must
have an annual income less than 60 percent of the County's median. For more
information, call the manager at 379-6119.
7 Villa Vasona
626 W. Parr Avenue
One hundred seven units for seniors and handicapped. Vacancies filled from facility's
waiting list. For further information, call the manager at 370-9410.
PURCHASE:
1. BELOW MARKET PRICE HOUSING PROGRAM:
The Town of Los Gatos adopted an ordinance which requires that a percentage of all
units in a construction project be sold below market price. For further information on
the Below Market Price program, please call Ray Tovar of Community Housing.
Developers at 279-7676.
2. MORTGAGE CREDIT CERTIFICATE PROGRAM:
Through the County of Santa Clara, the Town participates in the Mortgage Credit
Certificate Program which reduces the mortgage payment by providing a tax credit on
federal personal income tax. For further information about the program, please call the
County, Office of the County Executive, at 299-4711.
HOUSING REHABILITATION:
1. HOUSING CONSERVATION PROGRAM:
This program offers grants and low interest loans for home repairs to income eligible Los
Gatos residents. For more information, please call Sangeetha Gali at 354-6820.
OTHER:
The Terraces of Los Gatos, 800 Blossom Hill Road, is a Licensed Residential Care Facility for
the Elderly and a Continuing Care Retirement Community regulated by the State of California.
Twenty-nine housing units and services are provided at reduced rates to eligible senior citizens
as part of the Terraces program. For more information, call 358-4477.
For information on housing in the greater Santa Clara County area, call Information and Referral
Services, Inc. at 345-4532.
Subsidized rental housing (Section 8 Certificates) information is available from the Santa Clara
County Housing Authority by calling 275-8770.
N:\CSD\BarbaralHouslist.CSD
Apia 5 1996
Georgia Travis
110 Wood Road, F-109
To the Mayor and Town Council
P. O. Box 949
Los Gatos, California 95031
Dear Mayor and Council:
(408) 354-0319 Los Gatos, California 95030
I appreciate this opportunity to comment about the need for more affordable
housing for low income families. As someone long concerned with their needs,
I am aware that more provision of subsidized housing is essential, and espe-
cially urgent at this time.
Job market changes and increased housing costs place more and more bread-
winners on the edge of homelessness. Employment opportunities, especially in
this valley, are for educated, skilled, technical and professional workers; persons
with low level education, outmoded skills or marginal capacities can secure
only low paying jobs that do not pay market rate rents. The need for two
breadwinners is well known. Families with only one are especially vulnerable.
Los Gatos residents are not immune from these forces. Our town has many
service workers, clerks, health care personnel, child care and school staff who
live on or near the margin and are pushed off when there is illness, or a
business doses, or family disruption occurs. Those who have jobs but cannot
afford to live here and commute from a distance, increase traffic congestion and
pollution. It would appear that the long term good of the town would be
served if more of them could live here.
No age group is immune from the misery of homelessness. We are seeing more
women in their seventies at the Travis Day Center in San Jose. One of them,
you will be pleased to know, whose husband had a heart attack at a supermar-
ket, and who had become homeless, luckily did secure a Section Eight apart-
ment of the Community Housing Developers. I remember my shock many
years ago when I visited a shelter and found two elderly Los Gatos women
who had recently been evicted from their apartments. You doubtless saw as I
did a few days ago, the picture in a local newspaper of two eight year old boys
from a neighboring community whose family had been temporarily housed in
tents at a Santa Cruz mountain campground.
The impending loss of federal and state funding for the needs of low income
persons, coming at this time of job market changes and the increasing gap
between rich and poor, make housing a critical issue. You are to be commend-
ed for the efforts you have made in the past to avoid making our town a selfish
haven for the fortunate and well to do. I hope you will consider additional
9 — ( AF~ tti:l .ts. z r 8
(
,1
measures to provide more housing that families with low or marginal incomes
can afford.
Sincerely yours,
Georgia Travis
April 9, 1996